Document:

Financing Agreement between Banco Nacional de Desenvolvimento Economico e Social

 Exhibit 10.20 
  

			
	  	 	LOAN AGREEMENT BY EXTENSION OF CREDIT No.
06.2.0874.1
MADE BY AND BETWEEN BANCO NACIONAL
DE DESENVOLVIMENTO E SOCIAL – BNDES AND
BRASIL TELECOM S.A., WITH THIRD PARTY
INTERVENTION, AS FOLLOWS

 BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES, hereby simply referred to
as BNDES, a federal publicly held company, headquartered in Brasilia, Federal District, and with services in this City, at Avenida República do Chile No. 100, corporate taxpayer register CNPJ No. 33.657.248/0001-89, by its
undersigned representatives; 
 and 
 BRASIL
TELECOM, hereinafter referred to as BENEFICIARY, a corporation, headquartered in Brasilia, Federal District, SIA SUL – ASP Lote D Bloco B – Guará – CNPJ No. 76.535.764/0001-43, by its undersigned representatives; and,
appearing as INTERVENING PARTY: 
 BRASIL TELECOM PARTICIPAÇÕES S.A., a corporation, headquartered in Brasilia, Federal District, SAI SUL
– ASP Lote D Bloco B – SAI, CNPJ No. 02570688/0001-70 
 have mutually agreed to the following clauses: 
 CLAUSE 1 
 NATURE, VALUE AND PURPOSE
OF THE CONTRACT 
 BNDES extends to BENEFICIARY, by this Contract, a credit in the amount of R$ 1,304,335,625.00 (one billion, three
hundred and four million, three hundred and thirty-five thousand six hundred and twenty-five reais), as its ordinary resources, which are comprised, among other sources, by the funds of the Fundo de Amparo ao Trabalhador (Worker’s
Support Fund) – FAT, by the funds originating from FAT – Special Deposits and from the Participation Fund PIS/PASEP, respecting, in relation to its allocation, the legislation applicable to each of the aforementioned sources, in compliance
with the provisions in §2 of Clause 2, allocated to the expansion of network infrastructure (voice, data and image) and information technology, so as to continue to comply with the Universalization and Quality targets and permit the
consolidation of the company as a multi-provider of telecommunication services. 
 The credit is divided into 2 (two) subcredits, in the following values:

  

	 	-	Subcredit “A”: R$ 1,204,335,625.00 (one billion, two hundred and four million, three hundred and thirty-five thousand, six hundred and twenty-five reais) intended
for the acquisition of national equipment accredited at BNDES, assemblies and facilities, and civil works; 

  

	 	-	Subcredit “B”: R$ 100,000,000.00 (one hundred million reais) intended for the acquisition of telecommunication equipment that complies with the Basic
Productive Process (PPB) and presents documents of the Ministry of Science and Technology, attesting that the product contains national technology, according to Ordinance MCT No. 09/12/1994, or other substitutes and the associated services;

 §1. BNDES may reduce Subcredit “B”, prior to its total use, the amount of this reduction being added to Subcredit
“A”, on the same conditions of interest rate and term as Subcredit “A”. In this event, BNDES shall provide notice of the alteration, in writing, to BENEFICIARY. 

 CLAUSE 2 
 CREDIT AVAILABILITY 
 The credit will be placed at the disposal of the BENFICIARY in
installments, after the conditions precedent of utilization mentioned in Clause 12 have been complied with, in function of the needs for performance of the financed project, in compliance with the financial schedule of BNDES, which is subordinated
to the definition of funds for its applications, by the National Monetary Council. 
 §1 
 The funds of this transaction will be placed at the disposal of BENEFICIARY, by credit into a current account opened in its name at BNDES, not subject to
operation, restricted to this transaction, in which will be made, moreover, at the moment of release, the debits determined by law and those contractually authorized by BENEFICIARY, whose total remaining balance of the funds will be immediately
transferred to current account No. 10.321-7, which BENEFICIARY has at Banco do Brasil S.A., Corporate branch (No. 3307-3). 
 §2 

The value of each credit installment to be placed at the disposal of BENEFICIARY shall be calculated according to the criterion established in the law
that instituted the Long Term Interest Rate – TJLP for determination of the balances due of the financings contracted by the BNDES System up to November 30, 1994. 
 CLAUSE 3 
 INTEREST 
 On the principal amount of the debt of BENEFICIARY resulting from Subcredits “A” and “B” the following interest rate shall accrue, in
compliance with the system contained in this Clause: 
 I – Subcredit “A”: interest of 4.30% (four and thirty hundredths percent) per
annum (as “spread”), above the Long Term Interest Rate – TJLP, disclosed by the Central Bank of Brazil; 
 II – Subcredit
“B”: interest of 2.30% (two and thirty hundredths percent) per annum (as “spread”), above the Long Term Interest Rate – TJLP, published by the Central Bank of Brazil; 
 §1 
 - In connection with the TJLP being superior to 6% (six
percent) per annum: 
  

	 	a)	 the amount corresponding to the installment of TJLP which exceeds 6% (six percent) per annum will be capitalized on the 15th (fifteenth) day of each month of effectiveness of this Contract and on its maturity or liquidation, in compliance
with the provisions in Clause 18, and calculated by accrual of the following term of capitalization on the balance due, having considered all the financial events occurring in the period: 

 TC = [(1 + TJLP)/1.06]n/360 – 1 (term of capitalization equal to, open square bracket, ratio between
the TJLP plus the unit one, and one and six hundredths, close square bracket, to the power corresponding to the ration between “n” and three hundred and sixty, deducting the unit one from this result), where: 
 TC – term of capitalization; 
 TJLP – Long Term Interest Rate,
published by the Central Bank of Brazil; and 
 n – number of days existing between the date of the financial event and the date of capitalization,
maturity or liquidation of the obligation, considering as financial events any and all facts of a financial nature from which results or may result in the alteration of the balance due of this Contract. 
  

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	 	b)	The percentages of 4.30% (four and thirty hundredths percent) per annum above the TJLP (remuneration) and 2.30% (two and thirty hundredths percent) per annum above the TJLP
(remuneration), mentioned, respectively, in items I and II of this Clause, plus the non-capitalized portion of 6% (six percent) per annum, shall accrue on the balances due of Subcredits “A” and “B”, respectively, on the due dates
of the interest, mentioned in §4 or on the date of maturity or liquidation of the Contract, being considered, for the daily calculation of interest, the number of days elapsed between the date of each financial event and the due dates cited
above. 

 §2 
 -
When the TJLP is equal to or lower than 6% (six percent) per annum: 
 The percentages of 4.30% (four and thirty hundredths percent) per annum above
the TJLP (remuneration) and of 2.30% (two and thirty hundredths percent) per annum above the TJLP (remuneration), mentioned, respectively, in items I and II of this Clause, plus the TJLP itself, shall accrue on the outstanding balances of Subcredits
“A” and “B”, respectively, on the due dates of the interest mentioned in §4 or on the due or liquidation date of the Contract, being considered, for the daily calculation of interest, the number of days elapsed between the
date of each financial event and the due dates cited above. 
 §3 
 The amount mentioned in §1, section “a”, which will be capitalized, is incorporated into the principal of the debt, that will be due pursuant to the terms of Clause 6. 
 §4 
 The amount verified
pursuant to the terms of §1, section “b”, or of §2 will be due quarterly, on the 15th (fifteenth) day of the months of February, May, August and November of each year, in the period comprised, between November 15, 2006 and May 15, 2009, and, monthly, from June 15, 2009, inclusive,
together with the amortization installments of the principal and on the maturity or liquidation of this Contract, in compliance with the provisions in Clause 18. 
 §5: 
 If funds originating from the PIS/PASEP Participation Fund, contemplated in Complementary Law No. 28, of
September 11, 1975, are used, the remuneration commissions due will be considered hereby covered in the interest stipulated in the heading of this Clause, according to the relevant legislation of said Fund. 
 CLAUSE 4 
 CHARGE FOR
CREDIT RESERVE 
 BENEFICIARY shall pay to BNDES the Charge for Credit Reserve of 0.1% (one tenth percent), which may be collected
for the period of 30 (thirty) days, or a fraction, and accruing on: 
 I – the unused balance of each credit installment, from the day immediately
subsequent to its availability until the date of its use, when its payment will be due; and 
 II – the unused balance of the credit, from the date
immediately subsequent to its availability until the date of cancellation, effected at the request of BENEFICIARY, or by initiative of BNDES, and which payment will be due on the date of the request, or of the decision of BNDES, according to the
case. 
 SOLE § 
 The accrual of the
charge contemplated in items I and II, mentioned above, shall occur in the event of establishment of the funds availability scheme. 
  

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 CLAUSE 5 
 PROCESSING AND COLLECTION OF THE DEBT 
 The collection of the principal and of the charges
will be made by Collection Notice issued by BNDES, in advance, for the BENEFICIARY to liquidate those obligations on their maturity dates. 
 SOLE
§ 
 Failure to receive the Collection Notice shall not release the BENEFICIARY from the obligation to pay the installments of
principal and the charges on the dates established in this Contract. 
 CLAUSE 6 
 AMORTIZATION 
 The principal amount of the debt resulting from this Contract shall be paid to BNDES in 60 (sixty) monthly and successive installments, each in the amount of the principal falling due of the debt, divided by the number of amortization
installments not yet due, the first falling due on June 15th (fifteenth) of
2009, in compliance with the provisions in Clause 18, with the BENEFICIARY undertaking to liquidate with the last installment, on May 15th (fifteenth) 2014, all the obligations resulting from this Contract. 
 CLAUSE 7 
 GUARANTEE OF THE TRANSACTION 
 To ensure the payment of any obligations resulting from this Contract, such as the principal of the debt, interest, commissions, conventional penalty,
fines and expenses, BENEFICIARY shall supply to BNDES: 
 I – Assignment and Restriction of Revenues from the payment by the users of telecommunication
services provided by the BENEFICIARY in an amount defined pursuant to the terms of the CONTRACT OF ASSIGNMENT AND RESTRICTION OF REVENUES AND OTHER COVENANTS approved by Decree No. Dir 764/2006 - BNDES, in which regime of guarantees this present
loan will become a part through contractual addendum; 
 II – Partial assignment, in favor of BNDES, irrevocably and irreversibly, of the indemnity due
in the event of termination of the Concession Contract of the fixed switched telephone service, signed by BENEFICIARY and the National Telecommunications Agency – ANATEL, in an amount sufficient for the settlement of its debts resulting from
this Contract. 
 SOLE § 
 The guarantee contemplated in item I of this Clause is formalized by an Addendum to the CONTRACT OF ASSIGNMENT AND RESTRICTION OF REVENUES AND OTHER COVENANTS approved by BNDES, through Decree Dir. No. 764/2006, which is an integral
part of this CONTRACT, as Attachment I. 
 CLAUSE 8 
 ALTERATION OF THE LEGAL REMUNERATION CRITERIA OF THE 
 FUNDS
ORIGINATING FROM THE PIS/PASEP AND FAT FUNDS 
 In the event of the legal remuneration criteria of the funds onlent to BNDES, arising
out of the PIS/PASEP and FAT funds being substituted, the remuneration contemplated in Clause 15 may, at the discretion of BNDES, start to be made by use of a new remuneration criteria of said funds, or another, indicated by BNDES, which, in
addition to preserving the real value of the transaction, remunerates it at the same previous levels. In this case, BNDES shall inform the alteration in writing to BENEFICIARY. 
  

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 CLAUSE 9 
 SPECIAL OBLIGATIONS OF BENEFICIARY 
 BENEFICIARY binds itself to: 
 I – comply, where applicable, until the end of the liquidation of the debt resulting from this Contract, with the “PROVISIONS APPLICABLE TO BNDES
CONTRACTS”, approved by Resolution No. 665, of December 10, 1987, partially altered by Resolution No. 775, of December 16, 1991, by Resolution No. 863, of March 11, 1996, by Resolution No. 878, of
September 04, 1996, by Resolution No. 894, of March 06, 1997, by Resolution No. 927, of April 1, 1998, and by Resolution No. 976, of September 24, 2001, all of the BNDES Management, published in the Union Gazette
(Section 1) of December 29, 1987, December 27, 1991, April 08, 1996, September 24, 1996, March 19, 1997, April 15, 1998 and October 31, 2001, respectively, whose copy is hereby delivered to
the BENEFICIARY, which, after having become aware of the entire content of the same, declares to accept it as an integral and inseparable part of this Contract, for all legal effects and purposes; 
 II – use the total credit within 30 (thirty) months, counting from the date of execution of this Contract, without prejudice to the power of BNDES, prior to or
after the final term of this deadline, by express authorization, by letter, regardless of any other formality or registration; 
 III – submit to BNDES,
within 180 (one hundred and eighty) days, counted from the release of the last installment of the credit resulting from this Contract, the Operation License of the Project financed hereunder, officially published, issued by the competent body,
member of the National System of the Environment (SISNAMA) or, supplementarily, by the Brazilian Institute of the Environment and Renewable Resources - IBAMA; 
 IV – in the event of the occurrence, in function of the project contemplated in Clause 1, of a reduction in the staff of BENEFICIARY during the effective period of this Contract, to offer a training program geared to the labor
opportunities in the region and/or reemployment of the workers in other companies, after having submitted to BNDES, for appreciation, a document that specifies and attests to the conclusion of the negotiations made with the competent
representation(s) of the workers involved in the dismissal process; 
 V – adopt, during the effective period of this Contract, the measures and actions
intended to prevent or correct damages to the environment, occupational safety and medicine, which may be caused by the project contemplated in Clause 1; 
 VI – maintain in good standing its obligations with the environmental bodies, during the effective period of this Contract; 
 VII –
observe, during the effective period of this Contract, the provisions in the legislation applicable to handicapped persons; 
 VIII – communicate to
BNDES, on the date of the event, the name and individual taxpayer register CPF/MF of persons who, while performing a remunerated function or being one of its owners, controllers or directors has been elected or has taken office as Federal Deputy or
Senator; 
 IX – maintain up to date its obligations before the National Telecommunications Agency – ANATEL, during the effective period of this
Contract; 
 X – send, with copy to BNDES, a correspondence to the Concession Power, by the National Telecommunications Agency – ANATEL, attaching
a copy of this Contract for the purposes of Article 290 of the Civil Code, notifying it of the assignment of indemnity in the event of termination of the Concession Contract of the fixed switched telephony services, signed by the BENEFICIARY and
ANATEL, mentioned in item II of Clause 7, and requesting the eventual payment be made to BNDES, for an amount sufficient to liquidate the obligations resulting from this Contract; 
  

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 XI – in the event of the indemnity contemplated in item II of Clause VII being undue or insufficient, the
BENEFICIARY shall pay directly to BNDES the financial obligations intended for full liquidation of the debt of this Contract; 
 XII – not assign in
favor of another creditor, without the previous and express consent of BNDES, the indemnity contemplated in item II of Clause 7; 
 XIII – not assign or
restrict in favor of another creditor, without previous and express consent of BNDES, the revenues restricted and assigned to this Contract, according to item I of Clause 7; 
 XIV – not constitute, except for previous and express authorization from BNDES, in rem guarantees in favor of other long term creditors, without the same guarantees being provided to BNDES, with equal priority of
payment; 
 XV – not create a lien on the rights given as guarantee to BNDES, without the previous authorization of the latter, under penalty of early
maturity of this Contract. 
 XVI – not assign in guarantee, without previous consent from BNDES to another creditor, the indemnity due by the National
Telecommunications Agency – ANATEL, as a result of termination of the Concession Contract mentioned in item II, in Clause 7. 
 XVII – In the event
of declaration of early maturity of the debentures issued on 06/01/2006, registered at the CVM under No. CVM/SER/DEB/2006/020, inform BNDES of the occurrence of such fact within 24 hours, counted from receipt of the notification by the Fiduciary
Agent. 
 XVIII – maintain, during the term of this Contract, and until its final maturity, the three financial indices according to the values
stipulated below, verified biannually in the months of June and December, based on the consolidated financial statements of BENEFICIARY audited by external auditors, registered at Comissão de Valores Mobiliários - CVM (the Brazilian
equivalent to the US Securities and Exchange Commission). 
  

	 	a)	Consolidated EBITDA/Consolidated Financial Expenses: equal to or greater than 1.95; 

  

	 	b)	Consolidated Debt/Consolidated EBITDA equal to or less than 3.75; 

  

	 	c)	Consolidated Debt/ (Consolidated Debt + PL): equal to or less than 0.65; 

 §1 
 Noncompliance by the BENEFICIARY, with any of the financial indexes contemplated in item XVIII, will lead to freezing of
the funds corresponding to 03 (three) times the value of the highest installment due, considered including the principal of the debt, interest, commissions, conventional penalty and other contractually contemplated charges, which will be released
when compliance with the financial indices is restored; 
 §2 
 The BENEFICIARY may submit for approval by BNDES the replacement of the freezing of funds, contemplated in §1, by reinforcement of guarantees through posting as collateral preexisting financial investments, held
by it, in an amount sufficient to comply with the freezing order, which collateral will be released when compliance with the covenanted financial indices is restored, determined as established in item XVIII. BENEFICIARY shall be responsible for
compliance with all the formalities necessary for the constitution of this guarantee, which shall be provided for in an appropriate instrument; 
 §3 
 If it is evidenced that BENEFICIARY has not complied with any of the financial indices contemplated in item XVIII for 2
(two) consecutive determination periods, BNDES may choose, within 45 (forty-five) days after official disclosure to the market of the results of BENEFICIARY, among: 1) maintenance of the retained value; 2) to declare the early maturity of this
Contract, with the required repayment of the debt and immediate suspension of any disbursement; 
  

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 §4 
 For
purposes of determination of the financial indices set forth in item XVIII, the following definitions and criteria shall be adopted: 
 a) Consolidated
EBITDA: means the sum of the last 4 (four) quarters (i) of the result prior to deduction of taxes, charges, contributions and participations; (ii) of the depreciation and amortizations occurred in the period; (iii) of the Consolidated
Financial expenses less financial revenues; and (iv) of the non-operating income; 
 b) Consolidated Financial Expenses: sum, of the last 4 (four)
quarters, of the costs of issuance of debt, interest paid to natural persons or legal entities (including financial institutions and suppliers), securities, non-cash financial expenses, commissions, discounts and other rates for bank loans or credit
cards, expenses and revenues from hedge transactions, expenses with surety, bail, pledges or other guarantees provided to other obligations, excluding interest on shareholders’ equity or any other form of remuneration to shareholders, accounted
for as a financial expense; 
 c) Consolidated Debt: sum of the consolidated lucrative debts of BENEFICIARY with natural persons and/or corporations,
including third party loans and financing, issue of fixed income securities, convertible or not, in the local and/or international capital markets. Surety, bail, pledges or guarantees provided by BENEFICIARY, as well as the sale or assignment of
future receivables, will be considered as debt, provided that they are accounted for as obligations in the Financial Statements of the BENEFICIARY; 
 d) PL:
Shareholders’ Equity, including “Minority Participations”; 
 CLAUSE 10 
 OBLIGATIONS OF THE INTERVENING PARTY 
 The Intervening Party BRASIL TELECOM PARTICIPAÇÕES S.A., identified in the preamble of this contract, undertakes to: 
 I –
submit to the approval of BNDES any proposals on matters concerning the encumbrance, on any account, of a share held by it, issued by BENEFICIARY, for sale, acquisition, incorporation, merger, split of assets, or any other act, which leads or may
lead to modifications in the current configuration or in transfer of the share control of BENEFICIARY, or in alteration of its capacity as controlling shareholder of BENEFICIARY, pursuant to the terms of Article 116, of Law No. 6.404, of
12.15.76; 
 II – not promote the inclusion in a corporate agreement, bylaw or Articles of Incorporation of BENEFICIARY, of a provision that leads to:

 a) restrictions to the capacity of growth of BENEFICIARY or to its technological development; or 
 b) restrictions of access by BENEFICIARY to new markets; or 
 c)
restrictions or impairments on the capacity of payment of the financial obligations of the transactions with BNDES; 
 III – not promote acts or
measures that impair or alter the economic-financial equilibrium of BENEFICIARY, so as to prevent it from complying with the payment obligations established in this Contract and the purpose contemplated in Clause 1; 
 IV – take all the steps necessary to ensure compliance with the purpose of this transaction, contemplated in Clause 1; 
  

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 V – contribute the funds necessary for the performance of the project contemplated in Clause 1, as well as maintain
them during the effectiveness of this Contract; 
 VI – perform all the acts necessary to compliance with the investment plan of BENEFICIARY, as
presented to BNDES; 
 VII – inform immediately to BNDES any act or fact, which may impair compliance with the purpose contemplated in Clause 1,
especially in connection with performance of the guarantees covenanted; 
 VIII – exercise its direct or indirect controlling power over BENEFICIARY, so
as to maintain the good standing of the Concession Contract executed with ANATEL. 
 CLAUSE 11 
 RECIPROCAL POWER OF ATTORNEY 
 BENEFICIARY and INTERVENING PARTY hereby, irrevocably and irreversibly, constitute each other mutually and reciprocally attorneys-in-fact until final settlement of the debt assumed herein, with powers to receive summons, notifications and,
moreover, with “ad judicia” powers for the venue in general, which may be subgranted to a lawyer, all in connection with any judicial or extrajudicial proceedings promoted against them by BNDES, as a result of this Contract, being able to
perform all the acts necessary to good and faithful performance of this mandate. 
 CLAUSE 12 
 CONDITIONS OF USE OF THE CREDIT 
 The use of the credit, in addition to compliance, where applicable, with the conditions contemplated in Articles 5 and 6 of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” mentioned above, and those established in the
“FOLLOW UP RULES AND INSTRUCTIONS”, contemplated in Article 2 of the same “PROVISIONS” are subject to compliance with the following: 
 I – For use of the first credit installment: 
 a) opening, by BENEFICIARY, of a current account at BNDES;

 b) submission, by BENEFICIARY, of an Addendum to the CONTRACT OF ASSIGNMENT AND RESTRICTION OF REVENUES AND OTHER COVENANTS, contemplated in item I of
Clause 7, duly signed, with signatures authenticated and competent registration; 
 c) evidence of receipt, by ANATEL of the correspondence contemplated in
item X of Clause 9; 
 II – For use of each installment of the credit: 
 a) inexistence of fact of an economic-financial nature, which, at the discretion of BNDES, may compromise the performance of the undertaking financed hereunder, so as to alter it or prevent its performance, pursuant
to the terms contemplated in the project approved by BNDES; 
 b) submission, by BENEFICIARY, of a Clearance Certificate - CND, issued by the Secretaria
da Receita Previdenciária Social Security Revenue Secretariat, via Internet, to be extracted by BENEFICIARY and checked by BNDES at the address www.previdenciasocial.gov.br; 
 c) evidence of good standing with the environmental bodies or when such evidence has already been presented and is in force, declaration by the BENEFICIARY as to the continuity of the validity of such document;

 d) submission, preferably by electronic file, of a list containing data that identifies the goods corresponding to the credit installment to be used,
itemizing the equipment, the manufacturer, the value, as well as other information to be requested by BNDES, so as to evidence that the machines and equipment acquired with the funds of this Contract are accredited at BNDES. 
  

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 CLAUSE 13 
 BAIL 
 The INTERVENING PARTY BRASIL TELECOM PARTICIPAÇÕES S.A., identified in
the preamble, accepts this Contract, in the capacity of guarantor and principal payer, waiving expressly the benefits of Articles 366, 827 and 838 of the Civil Code, and assuming joint liability until final settlement of this Contract, for the
faithful and exact compliance with all the obligations assumed herein by BENEFICIARY. 
 CLAUSE 14 
 DEFAULT 
 On the occurrence of
default on the obligations assumed by BENEFICIARY and by the INTERVENING PARTY, the provisions of Articles 40 to 47 of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS”, contemplated in Clause 9, item, shall be observed. 
 CLAUSE 15 
 FILING FINE

 In the event of judicial collection of the debt resulting from this Contract, BENEFICIARY shall pay a fine of 10% (ten percent) on
the principal and charges of the debt, in addition to extrajudicial expenses and lawyers’ fees, from the first order by the competent authority in the collection petition. 
 CLAUSE 16 
 EARLY SETTLEMENT OF THE DEBT 
 In the event of early settlement of the debt, the guarantees will be released, applying to the other obligations the provisions in Article 18, §2,
of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS”, mentioned in Clause 9, item I. 
 CLAUSE 17 
 EARLY MATURITY 
 BNDES may
declare this Contract as having matured early, with the requirement of repayment of the debt and immediate suspension of any disbursement, if, in addition to the events contemplated in Article 39 and 40 of the “PROVISIONS APPLICABLE TO BNDES
CONTRACTS”, contemplated in Clause 9, item I, the following is evidenced by BNDES: 
 a) reduction in the personnel of BENEFICIARY without
compliance with the provisions in item IV of Clause 9; or 
 b) inclusion, in a corporate agreement, bylaw or Articles of Incorporation of BENEFICIARY, or of
the companies that control it, of a provision according to which a special “quorum” is required for deliberation or approval of the matters that limit or curtail the control of any of these companies by the respective controllers or,
moreover, the inclusion in those documents, of a provision that leads to: 
 i) restrictions in the capacity of growth of BENEFICIARY or its technological
development; 
 ii) restrictions of access by BENEFICIARY to new markets; or 
 iii) restrictions or impairment of the capacity of payment of the financial obligations resulting from this transaction; 
  

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 d) Declaration of early maturity of the debentures issued by BENEFICIARY on 06/01/2006, registered at the CVM under No.
CVM/SER/DEB/2006/020. This event will be constituted upon receipt, by BENEFICIARY, of notification from the Fiduciary Agent, informing about this declaration. 
 §1 
 In the event of application of the funds granted by this Contract, for a different purpose than the one
contemplated in Clause 1, BNDES, without prejudice to the provisions in the heading of this Clause, shall inform this fact to the Federal Prosecution Service, for the purposes and effects of Law No. 7.492, of 06.16.86. 
 §2 
 This Contract shall also mature
early, with the requirement of repayment of the debt and immediate suspension of any disbursement, on the date of appointment of the BENEFICIARY as Federal Deputy or Senator, persons involved in the prohibitions set forth in the Federal
Constitution, Article 54, items I and II. Default charges shall not accrue, provided that the repayment occurs within 5 (five) business days counting from the date of appointment, under penalty, if not doing so, of causing the charges contemplated
for the events of early maturity by default to apply. 
 §3 
 BNDES may decree the early maturity of the contract if any significant change occurs in the economic-financial or operational conditions of BENEFICIARY or of the INTERVENING PARTY, which may impair faithful compliance
with the obligations assumed herein. 
 CLAUSE 18 
 MATURITY ON HOLIDAYS 
 Every maturity of amortization installments of the principal and other
charges, which occurs on Saturdays, Sundays or national holidays, including bank holidays, will be moved to the first subsequent business day, the charges being calculated to this date, and also beginning from this date, the subsequent regular
period of determination and calculation of the charges of this Contract. 
 CLAUSE 19 
 VENUE 
 The Forum of the Judiciary District of
the State of Rio de Janeiro is hereby elected to settle any questions arising out of this Contract, with express waiver of any other, however privileged. 
 The BENEFICIARY submitted a Positive Debt Certificate with Negative Effect – CND (Clearance Certificate) No. 263312006-23001040, issued on October 10, 2006, the INTERVENING PARTY submitted a Clearance
Certificate - CND No. 266392006 - 23001040, issued on September 19, 2006, by Secretaria da Receita Previdenciária. 
 The pages of this Instrument are initialed by Antonio Carlos do Amaralo Przedowsky, BNDES lawyer, by authorization of the legal representatives that sign it. 
 IN WITNESS WHEREOF, they sign this document in 4 (four) counterparts of equal content and form, for a single purpose, before the undersigned witnesses, 
 Rio de Janeiro, November 01, 2006 
 For BNDES: 
  

					
	/s/ DEMIAN FIOCCA	 		 	/s/ WAGNER BITTENCOURT
	 DEMIAN FIOCCA
 Chairman
	 		 	 WAGNER BITTENCOURT
 Officer

  

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 BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES 
 For BENEFICIARY: 
  

					
	/s/ [signature]	 		 	/s/ [signature]

 BRASIL TELECOM S.A. 
 INTERVENING PARTY: 
  

					
	/s/ [signature]	 		 	/s/ [signature]

 BRASIL TELECOM PARTICIPAÇÕES S.A. 
 WITNESSES: 
  

					
	 Name:
 ID:
 Individual Taxpayer Register – CPF:
	 		 	 Name:
 ID:
 CPF:

 Signature page that integrates Contract No. 06.2.0874.1 
 (stamped) 3rd Register of Deeds and Documents, Rua da Quitanda, 52, 3o andar, Centro, Rio de Janeiro – RJ. 
 Authentication stamp

 /s/ Ricardo Lagreca Siqueira 
 Ricardo Lagreca Siqueira

 Legal Manager 
  

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 ATTACHMENT I 
  

			
	 	  	CONTRACT OF ASSIGNMENT AND
RESTRICTION OF REVENUES AND
OTHER
COVENANTS, MADE BY BANCO
NACIONAL DE DESENVOLVIMENTO
ECONÔMICO E SOCIAL - BNDES AND
BRASIL TELECOM S.A. WITH THIRD
PARTY INTERVENTION, AS FOLLOWS:

 1. BNDES 
 BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES, a federal public company, headquartered in Brasilia, Federal District, and with services in the Municipality of Rio de Janeiro, State of Rio de Janeiro, at Av.
República do Chile, 100, corporate taxpayer register CNPJ/MF No. 33.657.248/0001-89, hereby represented by its legally identified undersigned representatives, hereinafter referred to as BNDES. 
 2. CENTRALIZING BANK 
 BANCO DO BRASIL S.A., headquartered in
the City of Brasilia, Federal District, in Setor Bancário Sul – Quadra 4 – Bloco A – Headquarters building III, CNPJ/MF No. 00.000.0000/0010-82, hereby represented by its undersigned and legally qualified representatives,
hereinafter referred to as CENTRALIZING BANK. 
 3. REPRESENTATIVE BANK 
 BANCO ITAU S.A., headquartered in the City of São Paulo, at Praça Alfredo Egydio de Souza Aranha No. 100 – Torre Itaúsa, corporate taxpayer register CNPJ/MF
No. 60.701.190/0001-04, hereby represented by its undersigned legally qualified representatives, also referred to as REPRESENTATIVE BANK. 
 4. BENEFICIARY 
 BRASIL TELECOM S.A., headquartered in the City of Brasilia, Federal District, at SIA SUL – ASP – Lote D,
Bloco B, CNPJ/MF No. 76.535.764/0001-43, hereby represented by its undersigned legally qualified representatives, hereinafter referred to as BENEFICIARY. 
 5. INTERVENING PARTY JOINT GUARANTOR 
 BRASIL TELECOM PARTICIPAÇÕES S.A., headquartered in the
City of Brasilia, Federal District, at SIA Sul – ASP – Lote D, Bloco B, Parte, CNPJ/MF No. 02.570.688/0001-70, hereby represented by its undersigned legally qualified representatives, hereinafter referred to as INTERVENING PARTY
JOINT GUARANTOR. 
 1. PRELIMINARY CONSIDERATIONS 
 I. BENEFICIARY has entered into four Loan Agreements by Extension of Credit in effect with BNDES, each one of the contracts being guaranteed by its own COLLECTION AGREEMENT, as follows: 
 a) On 11/24/2000, BNDES and BENEFICIARY entered into the Loan Agreement by Extension of Credit No. 00.2.542.3.1, in the amount of R$ 519,000,000.00 (five
hundred and nineteen million reais) and BENEFICIARY and the FINANCE AGENTS, defined hereinafter, entered into the Loan Agreement by Extension of Fixed Credit No. 543/2000, in the amount of R$1,211,000.00 (one billion, two
hundred and eleven million reais). Still on 11/24/2000, the FINANCE AGENTS, BNDES, the CENTRALIZING BANK, the BENEFICIARY and the INTERVENING PARTY entered into a COLLECTION, DEPOSIT AGREEMENT WITH
INTERVENTION AND OTHER COVENANTS, whose purpose is to restrict in favor of the FINANCE AGENTS and of BNDES the revenue from the provision of telecommunication services, by BENEFICIARY to the users, pursuant to the terms
contemplated therein, in guarantee of compliance with the obligations assumed in these two loans. 
  

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 b) On 12/13/2000, BNDES, COMPANHIA RIOGRANDENSE DE TELECOMUNICAÇÕES – CRT and the
INTERVENING PARTY JOINT GUARANTOR entered into the Loan Agreement by Extension of Credit No. 00.2.654.3.1, in the amount of R$ 134,460,000.00 (one hundred and thirty-four million, four hundred and sixty thousand reais), and CRT
and the FINANCE AGENTS entered into the Loan Agreement by Extension of Fixed Credit No. 10000488, in the amount of R$313,740,000.00 (three hundred and thirteen million, seven hundred and forty thousand reais). To guarantee these
contracts, on 12/13/2000, the FINANCE AGENTS, BNDES, the CENTRALIZING BANK, CRT and the INTERVENING PARTY JOINT GUARANTOR formalized the COLLECTION AND DEPOSIT AGREEMENT WITH INTERVENTION AND OTHER COVENANTS, whose
purpose was to restrict and pledge in favor of the FINANCE AGENTS and BNDES the revenue from the provision of telecommunication services by CRT to the users, as guarantee of compliance with the obligations assumed in these two
loans. BENEFICIARY, as a result of incorporation, succeeded CRT in these contracts. 
 c) BNDES and BENEFICIARY entered into, on
11/25/2002, the Contract of Supply by Extension of Credit No. 02.2.735.3.1, in the amount of R$97,600,200.00 (ninety-seven million, six hundred thousand and two hundred reais). On the same date, the FINANCE AGENTS, BNDES, the
CENTRALIZING BANK, BENEFICIARY and the INTERVENING PARTY JOINT GUARANTOR entered into the COLLECTION AND DEPOSIT AGREEMENT WITH INTERVENTION AND OTHER COVENANTS, whose purpose was to restrict in favor of the FINANCE AGENTS
and of BNDES the revenue from the provision of telecommunication services by BENEFICIARY to the users, pursuant to the terms contemplated therein, in guarantee of compliance with the obligations assumed in these loans. 

d) On 08/13/2004, BNDES and BENEFICIARY entered into the Loan Agreement by Extension of Credit No. 04.2.559.3.1, in the amount of R$
1,267,593,000.00 (one billion, two hundred and sixty-seven million, five hundred and three thousand reais). On the same date, BNDES, the CENTRALIZING BANK, BENEFICIARY and the INTERVENING PARTY JOINT GUARANTOR entered
into the CONTRACT OF ASSIGNMENT AND RESTRICTION OF REVENUE AND OTHER COVENANTS, whose purpose was to restrict in favor of BNDES the revenue arising out of the provision of telecommunication services by the BENEFICIARY to the
users, pursuant to the terms contemplated therein, as guarantee of compliance with the obligations assumed in this loan. 
 e) The loans mentioned above are
referred to as FORMER DIRECT LOANS and FORMER INDIRECT LOANS, according to the mode of operation. 
 II. The FORMER DIRECT AND INDIRECT
LOANS and the respective COLLECTION AGREEMENTS underwent successive addenda, aiming at, among other objectives, the sharing of revenues already restricted to new collection agreements, resulting from new loans already granted. 

III. The COLLECTION AGREEMENTS instrumentalized not only guarantees for the FORMER DIRECT LOANS, but also guarantees provided to the FORMER INDIRECT
LOANS, in which the FINANCE AGENTS onlent funds for the implementation of the same projects contemplated by the transactions executed directly with BNDES. 
 IV. Adding the portions of revenue successively restricted as guarantee as a result of the FORMER DIRECT AND INDIRECT LOANS, it is determined that all the revenues of BENEFICIARY, from the provision of
telecommunication services, and received through COLLECTING BANKS, were assigned in guarantee to BNDES and to the FINANCE AGENTS, defined below. 
 V. The assignment and restriction of the revenues by the BENEFICIARY as a result of the obligations assumed in the FORMER DIRECT LOANS and in new direct loans granted by BNDES will be
governed by the systemization established herein, which deals in a unified manner with the assignments and restrictions of revenues agreed in different loans. This regimentation is agreed upon in order to permit its use as guarantee of new loans and
enable the alteration of the volume of restricted revenues, including with eventual volume reductions. 
  

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 2. DEFINITIONS 
 For purposes of this contract, the expressions below shall be defined as follows: 
 FINANCE AGENTS: financial institutions that granted the
FORMER INDIRECT LOANS to BENEFICIARY through onlending of funds from BNDES, according to the preliminary considerations, item I, sections “a” to “c”. 
 REPRESENTATIVE BANK: financial institution, a party hereto, exclusively responsible for the administration and operation of the DIRECT RESTRICTED ACCOUNT,
ensuring the protection of the rights and interests of the creditor BNDES according to the terms and conditions established herein. 
 COLLECTING
BANKS: financial institutions engaged by BENEFICIARY to receive invoicing, as a result of the provision of telecommunication services by the BENEFICIARY, related to Attachment I. BENEFICIARY, by previous authorization by
BNDES, may substitute the COLLECTING BANKS, listed in Attachment I. It is established that the substitution will be formalized by an addendum to this CONTRACT. All said resources collected by the COLLECTING BANKS will be
transferred by and made available by the COLLECTING BANKS in the COLLECTING ACCOUNTS on the day subsequent to their entry. 
 CENTRALIZING
BANK: financial institution party hereto, responsible for opening, maintaining, and operating the COLLECTING ACCOUNTS and the UNIFIED CENTRALIZED ACCOUNT, according to the terms and conditions established herein. 

COLLECTING ACCOUNTS: current accounts, set forth in Attachment II to this CONTRACT opened in the Brasilia branch of the CENTRALIZING BANK, held
by BENEFICIARY, to which all the funds received by the COLLECTING BANKS will be transferred, according to the previous definition. All the funds that enter the COLLECTING ACCOUNTS will be transferred and made available at the
UNIFIED COLLECTING ACCOUNT, in the same day’s banking hours. The COLLECTING ACCOUNTS are not subject to operation by check, and operations relating thereto will be made only through the CENTRALIZING BANK as established in
this CONTRACT. 
 UNIFIED CENTRALIZING ACCOUNT: Current Account No. 5.356-2, of Branch 3307-3, of the CENTRALIZING BANK, whose
holder is the BENEFICIARY, to be used for centralization of funds from COLLECTING ACCOUNTS. It shall be operated according to the terms of the CONTRACT, through transfer mechanisms, by means of a money order, DOC or TED, or
other forms of electronic transfer authorized by the applicable regulation, the issuance of checks or any other means of operation against it will not be permitted, to which will be transferred on the same business days of their deposit all the
funds received in the COLLECTING ACCOUNTS. 
 DIRECT RESTRICTED ACCOUNT: Current Account No. 54.301-2, of Branch No. 2001, opened in
the REPRESENTATIVE BANK, held by BENEFICIARY, regulated in this CONTRACT, which receives the RESTRICTED ACCOUNTS coming from a UNIFIED CENTRALIZING ACCOUNT, in guarantee for compliance with the obligations of the
LOANS, signed by BENEFICIARY and BNDES. The DIRECT RESTRICTED ACCOUNT is not subject to operation by check, its movement will be made only by the REPRESENTATIVE BANK as established in this CONTRACT.

 MOVEMENT ACCOUNT: current account of free movement and held by the BENEFICIARY indicated by the latter for receipt of resources released
from the UNIFIED CENTRALIZING ACCOUNT and from the DIRECT RESTRICTED ACCOUNT.  
 CONTRACT: The Contract of Assignment and
Restriction of Revenues and Other Covenants made in this instrument. 
 COLLECTION CONTRACTS: Contracts of Collection, Deposit with Intervention and
Other Covenants and/or Contract of Assignment of Revenue and Other Covenants, having, as parties, the BENEFICIARY, the CENTRALIZING BANK, the BNDES and/or the FINANCE AGENTS and executed to instrumentalize the guarantees
for the FORMER DIRECT and INDIRECT LOANS, as described in the PRELIMINARY CONSIDERATIONS from ‘a’ to ‘d’. 
  

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 ARTICLES OF DISSOLUTION: Instruments of Articles of Dissolution which will provide a final term to the
effectiveness of the respective COLLECTION CONTRACTS, which will be succeeded by this CONTRACT. 
 BANK DOMICILE: financial institution
in which the BENEFICIARY shall maintain the COLLECTING ACCOUNTS and the UNIFIED CENTRALIZING ACCOUNT until final settlement of the obligations assumed in the LOANS obtained with BNDES and while this CONTRACT
and its addenda are in force. 
 INVOICING: revenues resulting from the payments for the telecommunication services provided by the BENEFICIARY
to its users, received daily by the COLLECTING BANKS. 
 LOANS OR FINANCING: all the direct loans already granted by BNDES to
BENEFICIARY, entered into in appropriate instruments listed in Attachment III, and furthermore those that enter and are guaranteed by the structure established in this CONTRACT, through contractual addendum. 
 FORMER DIRECT AND INDIRECT LOANS: are the loans in effect at the time of execution of this CONTRACT, such as those referred to in the PRELIMINARY
CONSIDERATIONS (I, “e”). 
 RESTRICTED REVENUES: revenues in an amount defined in the terms of this CONTRACT, which guarantee
compliance with the obligations resulting from the LOANS. The RESTRICTED REVENUES will be equally determined month by month, according to Clause 3. 
 RESTRICT, RESTRICTED, RESTRICTION: for purposes of this CONTRACT, restrict, restricted and restriction mean encumber, the RESTRICTED REVENUES of the BENEFICIARY, delivered as guarantee of compliance with the
obligations assumed in the LOANS. 
 THE PARTIES APPOINTED AND IDENTIFIED ABOVE RESOLVE TO ENTER INTO THIS CONTRACT OF ASSIGNMENT OF REVENUES AND
OTHER COVENANTS, WHICH WILL BE GOVERNED BY THE FOLLOWING CLAUSES AND CONDITIONS. 
 CLAUSE 1 
 The parties, by common agreement, resolve to adopt the regimentation of this CONTRACT, which starts to regulate the restriction as guarantee by the
BENEFICIARY of revenues in favor of BNDES, in substitution for the COLLECTION CONTRACTS, made in the scope of the FORMER DIRECT AND INDIRECT LOANS. 
 CLAUSE 2 
 PURPOSE 
 2. The purpose of this CONTRACT is the assignment and restriction of revenues, with the establishment of the structure of accounts and procedures, which, from the
COLLECTION ACCOUNTS, direct the INVOICING to the UNIFIED CENTRALIZING ACCOUNT, from where the REVENUES RESTRICTED as guarantee to the FINANCING transfer to the DIRECT RESTRICTED ACCOUNT, before being released to
the MOVEMENT ACCOUNT, whether for already existing loans at the time of execution of this CONTRACT, and included in Attachment III or new financings, which come to be included by addenda to the CONTRACT. 
 2.1 This structure permits the volume of the REVENUES RESTRICTED as guarantee to be adjusted according to the evolution of the outstanding balances of the
LOANS, governing the assignment and restriction of the REVENUES RESTRICTED by the BENEFICIARY in favor of BNDES in variable amounts of its INVOICING. 
  

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 CLAUSE 3 
 ASSIGNMENT AND RESTRICTION OF REVENUES 
 3. To ensure the payment of any obligations resulting from the
LOANS, such as the principal of the debt, interest, commissions, conventional penalty and fines, BENEFICIARY assigns and restricts as guarantee to BNDES, irrevocably and irreversibly, in compliance with the provisions in Clause
3.2, the RESTRICTED REVENUES. 
 3.1 The volume of RESTRICTED REVENUES must be equal to the sum of the greatest of the following parameters, to
be determined by each of the LOANS. 
 i) 25% of the respective outstanding balance; 
 ii) The sum of the amortization installments of the principal falling due in the following six months. 
 3.1.1. The values
calculated according to subitems (i) or (ii) above will be re-calculated periodically, as provided in Clause 3.4 hereafter. 
 3.1.2. The parties
agree that the RESTRICTED REVENUES have their amount initially established at R$ 382,408,000.00 (three hundred and eighty-two million and four hundred and eight thousand reais) and will be reviewed pursuant to the terms of Clause 3.4.

 3.2. The amount in effect of the RESTRICTED REVENUES to be transferred to the DIRECT RESTRICTED ACCOUNT will be informed by BNDES to the
CENTRALIZING BANK and to the REPRESENTATIVE BANK. 
 3.2.1 The volume of the RESTRICTED REVENUES may only be altered by communication by
BNDES, in the absence thereof, the value previously in force remains effective. 
 3.3 To guarantee that the amount of the RESTRICTED REVENUES
will be reached, the CENTRALIZING BANK shall apply a percentage on the flow of funds entered daily in the UNIFIED CENTRALIZING ACCOUNT. This percentage will be informed by BNDES, calculated based on the quotient among the
RESTRICTED REVENUES, as defined in Clause 3.1, and the monthly average of funds that transited through the UNIFIED CENTRALIZING ACCOUNT in the 6 (six) months prior. 
 3.3.1 This percentage may only be altered by communication of BNDES and in the absence thereof, the one that was previously valid will remain effective. 
 3.3.2. In the event the percentage established proves insufficient to satisfy the establishment in Clause 3.1 above, the same will be altered pursuant to the terms of Clause 3.4 hereafter. 
 3.3.3 The parties agree that the percentage initially established is 41.04%, and will be reviewed pursuant to the terms of Clause 3.4. 
 3.4. The values calculated based on the parameters established in Clauses 3.1 and 3.3 will be reviewed ordinarily every 6 (six) months, but may, however, undergo at any
time an extraordinary review, if BNDES considers this measure necessary for adjustment of the same to the terms of this contract. 
 3.5 The
BENEFICIARY hereby authorizes, irrevocably and irreversibly, the CENTRALIZING BANK to retain and transfer from the UNIFIED CENTRALIZING ACCOUNT to the DIRECT RESTRICTED ACCOUNT the RESTRICTED REVENUES, in the
contractually stipulated amount and period. 
 CLAUSE 4 
 CENTRALIZATION OF REVENUE 
 4. The BENEFICIARY undertakes to maintain, during the
effectiveness of this CONTRACT, contracts of collection of revenue, with the COLLECTING BANKS listed in Attachment I. 
  

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 4.1. The CENTRALIZING BANK undertakes to inform monthly BNDES, the REPRESENTATIVE BANK and the
BENEFICIARY the volume of funds transited through the COLLECTING ACCOUNTS, through the UNIFIED CENTRALIZING ACCOUNT and also, the total funds given as guarantee by the BENEFICIARY, coming from the UNIFIED CENTRALIZING
ACCOUNT, to financings not covered by this CONTRACT. 
 4.1.1 The volume of funds transited in the month through the UNIFIED CENTRALIZING
ACCOUNT may not be lower than 90% of the monthly average over the 6 (six) months immediately prior. 
 4.1.2. The funds of the UNIFIED CENTRALIZING
ACCOUNT may not be recorded in guarantee to loan agreements, in general, whether with BNDES, or with third parties, in a total amount superior to 85% of the monthly average of the values transited through the same in the last six months.

 4.1.3 In the event of noncompliance with Clauses 4.1.1 and 4.1.2, the BENEFICIARY undertakes to reinforce the guarantee created herein, within the
period of 10 (ten) consecutive days, counted from the request by BNDES, under penalty of enabling the declaration of the early maturity of the LOANS, BNDES reserving the right to accept or not accept the new guarantees, in the
latter case, BNDES will inform the BENEFICIARY about the reasons for its non acceptance. 
 CLAUSE 5 

COLLECTING ACCOUNTS 
 5. The COLLECTING
ACCOUNTS are current accounts, listed in Attachment II, opened in the CENTRALIZING BANK, in the name of BENEFICIARY, through which the BENEFICIARY receives the INVOICING through the COLLECTING BANKS.

 5.1. All the funds, from the INVOICING and collected by the COLLECTING BANKS, will be credited in the COLLECTING ACCOUNTS on the
business day following their receipt, and transferred to the UNIFIED CENTRALIZING ACCOUNT and from the latter to the DIRECT RESTRICTED ACCOUNT, in the same day’s business hours, in which the COLLECTING ACCOUNTS were
credited. 
 5.1.1. The BENEFICIARY undertakes to notify, pursuant to the terms of Attachment IV of this CONTRACT, the COLLECTING BANKS
regarding the transfer of the funds contemplated in this Clause. 
 5.1.2 The notifications contemplated in Clause 5.1.1, duly signed by the legal
representatives of the COLLECTING BANKS, shall be delivered to BNDES, within the period for compliance with the obligations of notification established in the ARTICLES OF DISSOLUTION. 
 5.1.3 In the event of the COLLECTING BANKS not effecting the transfers of the funds, as established in this CONTRACT, the BENEFICIARY undertakes to
reinforce the guarantee created herein, within 10 (ten) consecutive days, counted from the request by BNDES, under penalty of early maturity of the LOANS, BNDES reserving the right to accept or not accept the new guarantees. In the
latter event, BNDES will inform BENEFICIARY the reasons for not accepting. 
 5.2. Any alteration in the COLLECTING ACCOUNTS and/or in
the COLLECTING BANKS shall be subject to the previous and express consent by BNDES. 
 CLAUSE 6 
 FLOW OF FUNDS IN THE UNIFIED CENTRALIZING ACCOUNT 
 6. BENEFICIARY undertakes to maintain with the CENTRALIZING BANK for the entire period of effectiveness of the LOANS, the UNIFIED CENTRALIZING ACCOUNT, where the RESTRICTED REVENUES will be transferred to the
DIRECT RESTRICTED ACCOUNT, in compliance with the provisions of this Clause. 
  

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 6.1. The CENTRALIZING BANK shall transfer from the UNIFIED CENTRALIZING ACCOUNT to the DIRECT RESTRICTED
ACCOUNT, in the same day’s business hours, on which the credit occurs, the percentage of the latter, which corresponds to the RESTRICTED REVENUES, defined as outlined by Clause 3, in compliance with the provisions of item 5.1 above.

 6.1.1. The existence of funds blocked in the DIRECT RESTRICTED ACCOUNT by any of the events contemplated in Clause 7, shall not alter the amounts
of funds, which will be transferred daily to the DIRECT RESTRICTED ACCOUNT, according to Clause 3. 
 6.2 The UNIFIED CENTRALIZING ACCOUNT will
be operated, solely, by the CENTRALIZING BANK, through transfer. The issuance of checks or any other means of operating this account is not permitted. 
 6.3. The retentions of RESTRICTED REVENUES which have already been deposited in the DIRECT RESTRICTED ACCOUNT upon determination of the blocking, shall comply with the procedure established in Clause 7. 
 6.4. In the event of funds being deposited in the UNIFIED CENTRALIZING ACCOUNT being insufficient to satisfy all the restriction obligations of revenues assumed by the
BENEFICIARY and instrumentalized by the UNIFIED CENTRALIZING ACCOUNT, these funds will be apportioned in the ratio of the outstanding balances due which apply to each creditor, the concession of any privilege being prohibited, according to Clause 8.

 CLAUSE 7 
 BLOCKING AND USE OF FUNDS FROM THE DIRECT RESTRICTED ACCOUNT 
 7. The funds deposited in the DIRECT RESTRICTED ACCOUNT may be
blocked, by communication of BNDES to the REPRESENTATIVE BANK, in the event of a determination of an occurrence of default on the financial obligations, noncompliance with the financial indices or in any other event of blocking or
freezing of funds contemplated in the FINANCINGS. 
 7.1. Based on the communication of blocking by BNDES, the funds already deposited in the
DIRECT RESTRICTED ACCOUNT, as well as the funds deposited in it from then on, will no longer be transferred to the MOVEMENT ACCOUNT until there is a counter-order by BNDES, except in the case of the surplus resources, as contemplated
in Clause 7.3. 
 7.2. The existence of frozen funds does not affect the obligation of continuous transfer of RESTRICTED REVENUES coming from the
UNIFIED CENTRALIZING ACCOUNT to the DIRECT RESTRICTED ACCOUNT. 
 7.3. In the event of freezing by default on the financial obligation of the
LOANS, the REPRESENTATIVE BANK shall transfer immediately to the BNDES account the amount of the RESTRICTED REVENUES, sufficient for the payment of the obligations due to that date, releasing to the BENEFICIARY the
funds that exceed the payment needs. 
 7.3.1. The freezing contemplated in Clause 7.3 shall last until all the principal financial obligations are fully
met. 
 7.4. In the event of noncompliance with the financial indices established in the LOANS, BNDES may inform the REPRESENTATIVE BANK after
calculation of the financial indices, the amount of the funds to be frozen in the DIRECT RESTRICTED ACCOUNT, as provided in the LOANS, the suspension of the freezing only occurring upon a new communication from BNDES to the
REPRESENTATIVE BANK. 
 7.4.1. Only in the event of freezing contemplated in Clause 7.4 shall amounts frozen in the DIRECT RESTRICTED ACCOUNT
be invested in Financial Investments represented by highly liquid investment funds, not exclusive, administered by financial institutions classified as eligible, according to the criterion established in Clause 7.4.2, indicated by
BENEFICIARY. If BENEFICIARY does not indicate them in 5 (five) business days counted from the deposit of the funds, the REPRESENTATIVE BANK is hereby 

  

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authorized, by BENEFICIARY, to invest immediately the values deposited in the DIRECT RESTRICTED ACCOUNT, in Financial Investments that comply
with the requirements listed above. The funds directed to each invested fund may not represent a portion superior to 15% (fifteen percent) of the total equity of the fund. 
 7.4.2. The following financial institutions will be considered eligible: (i) the 15 (fifteen) largest administrators of resources of third parties, classified by criterion of equity administered in the civil
semiannual period immediately prior, or (ii) the managers of funds that have the maximum classification attributed by a specialized independent institution. 
 7.4.3. As an exception to the rule established in item 7.4.1 above, BENEFICIARY may direct the REPRESENTATIVE BANK to invest the values frozen in the DIRECT RESTRICTED ACCOUNT in exclusive fund quotas, also administered by
institutions classified as eligible, provided that the total assets of the chosen fund are constituted by bonds of the federal debt, evident of high liquidity, such as LFTs and LTNs or others that may come to replace them. 
 7.4.4. The BENEFICIARY declares to be aware that the Financial Investments will be remunerated according to the actual market rates for the Financial Investment
chosen on the date of its constitution, in usual market conditions, always taking into consideration the volume of funds applied. It is established that the REPRESENTATIVE BANK does not guarantee, in any event, any minimum earnings, for the
Financial Investments, except if such guarantee is expressly contemplated in the specific rules of the chosen application. 
 7.4.5. The BENEFICIARY
undertakes not to dispose of the Financial Investments without the previous and express consent of BNDES. These, as well as their earnings, may only be redeemable by credit into DIRECT RESTRICTED ACCOUNT. 
 7.4.7. The rules established apply only to freezing that occurs as a result of the entry into effect of this CONTRACT, not affecting the investments resulting
from an existing freezing. 
 7.5 If there is no freezing, contemplated in this Clause 7, the funds transferred to the DIRECT RESTRICTED ACCOUNT shall
be transferred and made available, within the same day’s business hours, to the MOVEMENT ACCOUNT. 
 CLAUSE 8

 PROHIBITION OF ASSIGNMENT AND RESTRICTION 
 8. The BENEFICIARY may not assign, restrict, dispose of, transfer, sell, encumber, give as collateral or pledge or in any way trade the RESTRICTED REVENUES, or grant any privilege to another creditor, which is
guaranteed by the UNIFIED CENTRALIZING ACCOUNT, without previous and express consent by BNDES, under penalty of early maturity of the loans. If it performs any of these acts, they will have no effect in relation to BNDES,
maintaining in force, until final liquidation of all the obligations resulting from the LOANS, this CONTRACT and corresponding addenda, as well as any contractual instruments executed with the CENTRALIZING BANK, with the
REPRESENTATIVE BANK and with the COLLECTING BANKS, undertaking also not to alter the BANK DOMICILE or the DIRECT RESTRICTED ACCOUNT, without the previous consent of BNDES. 
 CLAUSE 9 
 CONCESSION OF
POWERS 
 9. The parties agree to the concessions of power below: 
 9.1. The BENEFICIARY grants to the CENTRALIZING BANK a power of attorney with special powers, irrevocably and irreversibly, pursuant to the terms of Article 668 of the Brazilian Civil Code, to transfer daily all the
sums deposited in the COLLECTING ACCOUNTS and from this UNIFIED CENTRALIZING ACCOUNT to the DIRECT RESTRICTED ACCOUNT, in the amounts determined according to the terms of the CONTRACT, in compliance with the provisions
stipulated in Clause 3 of this instrument. 
  

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 9.2 BENEFICIARY grants to the REPRESENTATIVE BANK, a power of attorney with special powers to administer
and operate the DIRECT RESTRICTED ACCOUNT, as stipulated in Clauses 7 and 11, irrevocably and irreversibly, pursuant to the terms of Article 684 of the Brazilian Civil Code, which mandate shall survive the effectiveness of the
CONTRACT, until the termination of all the obligations contemplated in the LOANS. 
 9.3 The BENEFICIARY, pursuant to the terms of the
power of attorney granted in Clause 2 above, authorizes the REPRESENTATIVE BANK to freeze, totally or partially, the RESTRICTED REVENUES, after formal communication by BNDES, according to the provisions stipulated in the
LOANS, and in compliance with the procedure contemplated in Clause 7, and in compliance with the procedure contemplated in Clause 7 of this CONTRACT. 
 9.4. It is expressly prohibited to the CENTRALIZING BANK and to the REPRESENTATIVE BANK to subgrant the powers granted herein. 
 CLAUSE 10 
 OBLIGATIONS OF THE CENTRALIZING BANK 
 10. The CENTRALIZING BANK accepts the provisions of Clause 9, promising to ensure faithful performance with the mandates conferred therein, highlighting the
following obligations: 
 a) Transfer daily all the resources deposited in the COLLECTING ACCOUNTS to the UNIFIED CENTRALIZING ACCOUNT, as
governed by this CONTRACT. 
 b) Transfer daily from the UNIFIED CENTRALIZING ACCOUNT, in compliance with the provisions of Clause 5.1 above,
to the DIRECT RESTRICTED ACCOUNT, the amount equivalent to the percentage of funds, determined as stipulated in Clause 3. 
 c) Not alter the flow of
funds from the COLLECTING ACCOUNTS to the UNIFIED CENTRALIZING ACCOUNT, without previous consent by BNDES. 
 d) Inform, monthly, to BNDES,
to the REPRESENTATIVE BANK and to the BENEFICIARY the volume of funds transited by the COLLECTING ACCOUNTS and by the UNIFIED CENTRALIZING ACCOUNT, as well as the amount and percentage bound in guarantee of contracts
executed with third parties. 
 10.1. With the exception of the obligations assumed in this CONTRACT, the CENTRALIZING BANK is herewith
released from any liabilities for compliance with the obligations assumed by BENEFICIARY and by the REPRESENTATIVE BANK, except those resulting from its performance as administrator of funds deposited in the COLLECTING ACCOUNTS
and in the UNIFIED CENTRALIZING ACCOUNT, as expressly agreed in this CONTRACT. 
 10.2 The CENTRALIZING BANK, herewith expressly
authorized by BENEFICIARY, shall grant access to BNDES and to the REPRESENTATIVE BANK to all the records of movement of credits and debits in connection with the COLLECTING BANKS and to the UNIFIED CENTRALIZING
ACCOUNT, and shall inform immediately to BNDES, any alteration in the movement levels of the UNIFIED CENTRALIZING ACCOUNT until final settlement of the obligations assumed by the BENEFICIARY and by the INTERVENING PARTY
JOINT GUARANTOR in the LOANS. 
 10.3 The CENTRALIZING BANK shall be held liable for noncompliance with the obligations assumed in this
CONTRACT and undertakes to indemnify BNDES for any and all loss resulting from the lack of diligence or not timely performing all the acts applicable thereto for good performance of its functions, as established in this
CONTRACT. 
 10.4. The CENTRALIZING BANK shall remain in the exercise of its functions while the new bank has not entered into an adherence
contract to this CONTRACT, in form and substance satisfactory to BNDES and BENEFICIARY. 
  

 20 

 CLAUSE 11 
 OBLIGATIONS OF THE REPRESENTATIVE BANK 
 11. The REPRESENTATIVE BANK accepts the provisions of Clause
9, promising to ensure faithful performance of the mandates contained therein, highlighting the following obligations: 
 a) Protect the rights and interests
of the creditor BNDES stipulated in this contract. 
 b) Prepare a monthly report for BNDES, by the 15th day of the month subsequent to the one elapsed, informing the material facts of the period, in
connection with the performance of the obligations assumed by BENEFICIARY and by the CENTRALIZING BANK, including the movements occurred and the total volume of funds transited through the COLLECTING ACCOUNTS, through the
UNIFIED CENTRALIZING ACCOUNT, and through the DIRECT RESTRICTED ACCOUNT. 
 c) Notify BNDES, within 5 (five) business days after the
materialization of the event, of any default by BENEFICIARY or by the CENTRALIZING BANK, of obligations assumed in this contract. 
 d) Freeze,
on the date of receipt of simple correspondence or by fax, sent by BNDES, the funds already deposited in the DIRECT RESTRICTED ACCOUNT, as well as those deposited in it from then on, according to Clause 7. 
 e) If thus instructed by BNDES, transfer the funds from the DIRECT RESTRICTED ACCOUNT to BNDES, for satisfaction of the obligations guaranteed by
this CONTRACT. 
 11.1. With the exception of the obligations assumed in this CONTRACT, the REPRESENTATIVE BANK is, herewith, released
from any responsibilities for compliance with the obligations assumed by BENEFICIARY or by the CENTRALIZING BANK, except those resulting from its performance as administrator of the resources deposited in the DIRECT RESTRICTED ACCOUNT,
as expressly agreed in this CONTRACT. 
 11.2. The REPRESENTATIVE BANK, herewith expressly authorized by BENEFICIARY, shall grant access
to BNDES to all the records and movements of credits and debits in connection with the DIRECT RESTRICTED ACCOUNT, and shall inform immediately to BNDES, any alteration in the transfer levels of the UNIFIED CENTRALIZING
ACCOUNT. 
 11.3. The REPRESENTATIVE BANK shall be held liable for noncompliance with the obligations assumed in this CONTRACT and
undertakes to indemnify BNDES and the BENEFICIARY for any and all losses resulting from lack of diligence or from not timely performing all the acts applicable to good performance of its functions, as established in this
CONTRACT. 
 11.4. The funds transferred to the DIRECT RESTRICTED ACCOUNT, except in the event of freezing contemplated in Clause 7, shall be
transferred and made available, on the business hours of the same day, in the MOVEMENT ACCOUNT. 
 11.5 The REPRESENTATIVE BANK shall remain in
the exercise of its functions while a new bank has not executed an adherence contract to this CONTRACT, in form and substance satisfactory to BNDES and BENEFICIARY. 
 CLAUSE 12 
 OBLIGATIONS OF BNDES 
 12. BNDES accepts the provisions of Clause 9 of this CONTRACT, promising to ensure faithful performance of the provisions therein. 
 12.1. BNDES shall communicate to the CENTRALIZING BANK the amount of the RESTRICTED REVENUES, as well as the corresponding percentage of funds deposited
daily in the UNIFIED CENTRALIZING ACCOUNT, to be transferred to the DIRECT RESTRICTED ACCOUNT, as stipulated in Clause 3. 
 12.2. BNDES shall
communicate in writing, through simple correspondence or by fax, to the REPRESENTATIVE BANK, to direct the freezing of funds in the DIRECT RESTRICTED ACCOUNT, and if applicable, indicating in the communication the value in
reais and the date on which the funds shall be transferred to the BNDES bank account. 
  

 21 

 CLAUSE 13 
 OBLIGATIONS OF THE INTERVENING PARTY 
 13. The INTERVENING PARTY JOINT GUARANTOR, identified in the
preamble of this CONTRACT, undertakes to: 
 I – exercise its direct or indirect controlling power over BENEFICIARY so as to make it
comply with the provisions in this CONTRACT, the INTERVENING PARTY JOINT GUARANTOR shall take all the steps applicable to ensure compliance with this CONTRACT. 
 II – inform immediately to BNDES any act or fact, which may impair compliance with any provision of this CONTRACT; 
 CLAUSE 14 
 EFFECTIVENESS 
 14. The effectiveness of this CONTRACT will begin on 09/29/2006, the date established in the notification contemplated in Clause 5.1.1 and from which date
COLLECTION CONTRACTS will no longer be in force, and their respective ARTICLES OF DISSOLUTION will start to be effective. 
 CLAUSE 15 
 SUBSTITUTION OF THE CENTRALIZING BANK 
 15.1 If the CENTRALIZING BANK ceases to perform its functions agreed in this CONTRACT (i) voluntarily, and in compliance with the obligations assumed
in Clause 10.4; or (ii) by removal as a result of request by the BENEFICIARY and consent by BNDES, the obligations of the CENTRALIZING BANK contemplated in this CONTRACT shall survive until the following requirements
have been fulfilled: 
 a) a first class financial institution, approved by BNDES has been appointed by the BENEFICIARY to act as successor
the CENTRALIZING BANK; 
 b) all the values then held by the CENTRALIZING BANK, pursuant to the terms of this CONTRACT, have been
transferred to the institution appointed as successor of the CENTRALIZING BANK; 
 c) all the documents, records, reports, analytical tables or others
in connection with the purpose of this CONTRACT, in the possession of the CENTRALIZING BANK, have been sent by the CENTRALIZING BANK to the successor institution. The original documents which have been maintained by the
CENTRALIZING BANK, by force of law or regulation applicable to the matter, will be sent in the form of an authenticated copy, or, as accepted by the successor institution, in a simple copy. 
 d) the successor institution of the CENTRALIZING BANK has fully adhered to the terms and conditions of this CONTRACT and the COLLECTING BANKS have
been notified about the substitution of the CENTRALIZING BANK. 
 CLAUSE 16 
 SUBSTITUTION OF THE REPRESENTATIVE BANK 
 16.1
If the REPRESENTATIVE BANK ceases to exercise its functions agreed in this CONTRACT (i) voluntarily and in compliance with the obligation assumed in Clause 11.5; or (ii) by removal as a result of the request made by BNDES or
by agreement between BNDES and BENEFICIARY, the obligations of the REPRESENTATIVE BANK, contemplated herein, shall survive until the following requirements have been fulfilled: 
  

 22 

 a) first class financial institution, approved by BNDES has been appointed by the BENEFICIARY to act as
successor of the REPRESENTATIVE BANK; 
 b) all the values then held by the REPRESENTATIVE BANK, pursuant to the terms of this CONTRACT
have been transferred to the institution appointed as successor of the REPRESENTATIVE BANK; 
 c) all the documents, records, reports, analytical
tables or others in connection with the purpose of this CONTRACT, in possession of the REPRESENTATIVE BANK, have been sent by the REPRESENTATIVE BANK to the successor institution. The original documents which have been
maintained by the REPRESENTATIVE BANK, by force of law or regulation applicable to the matter, will be sent in the form of an authenticated copy, or, as accepted by the successor institution, in simple copy; 
 d) the successor institution of the REPRESENTATIVE BANK has fully adhered to the terms and conditions of this CONTRACT and the CENTRALIZING BANK has
been notified about the substitution of the REPRESENTATIVE BANK; 
 CLAUSE 17 
 OPERABILITY 
 17. The CENTRALIZING BANK
undertakes to transfer the RESTRICTED REVENUE to the DIRECT RESTRICTED ACCOUNT BY 12:00 AM (Brasilia time) within the same day’s business hours on which the RESTRICTED REVENUE has been received, as governed in Clause 3. 
 17.1. If none of the events of freezing contemplated in Clause 7 occur, the REPRESENTATIVE BANK undertakes to the transfer the RESTRICTED REVENUE to the MOVEMENT ACCOUNT
by 01:00 PM (Brasilia time) within the same day’s business hours on which it has received the RESTRICTED REVENUE. 
 17.2 If there are delays in the
remittance and receipt of the RESTRICTED REVENUE, the BENEFICIARY, the REPRESENTATIVE BANK and the CENTRALIZING BANK shall collaborate to minimize the effects of said delays. 
 17.3 With the exception of the blockage hypothesis foreseen in Clause 7 and in the event of non effectuation of the transfers contemplated in Clauses 17 and 17.1, the party responsible will be liable for reimbursement
of the costs and/or charges duly documented by BENEFICIARY. 
 CLAUSE 18 
 GENERAL PROVISIONS 
 18. The CONTRACT
shall be effective from its execution until final settlement of all the obligations of BENEFICIARY and of the INTERVENING PARTY JOINT GUARANTOR in the LOANS, however, its effectiveness will commence according to Clause 14.

 18.1. BENEFICIARY, the CENTRALIZING BANK and the REPRESENTATIVE BANK undertake to store in their archives all the documents, books,
files, including electronic ones, and lists of the amounts transited through the COLLECTING BANKS, COLLECTING ACCOUNTS, the UNIFIED CENTRALIZING ACCOUNT and through the DIRECT RESTRICTED ACCOUNT, and undertake to supply
them to BNDES by simple request to this effect, within 10 (ten) consecutive days. 
 18.2. Except in the event of the priorities mentioned in the law,
BNDES has priority over any creditor in connection with the funds deposited in the DIRECT RESTRICTED ACCOUNT. 
 18.3. All the expenses
resulting from the maintenance of the COLLECTING ACCOUNTS, of the UNIFIED CENTRALIZING ACCOUNT and of the DIRECT RESTRICTED ACCOUNT, in connection with the FINANCING will be on the account of the BENEFICIARY, as
well as those in connection with registration of the CONTRACT. 
  

 23 

 18.4 Waiver by any of the parties, in connection with the exercise of any right attributed in this CONTRACT, and
in the FINANCING, shall only be effective when expressed in writing. No tolerance, delay or indulgence by any of the parties in complying with any provision of this CONTRACT shall impair or restrict the rights of such party, or even
prevent it from exercising such rights or any others on the timely occasion. 
 18.5 Without prejudice to the representations and guarantees provided in the
LOANS, the BENEFICIARY and the INTERVENING PARTY JOINT GUARANTOR declare and guarantee that: 
 a) they are authorized, pursuant to the
terms of the law and of their By-Laws, to confer, assign and restrict the RESTRICTED REVENUES, as well as comply with the provisions of this CONTRACT. 
 b) the making and execution of this CONTRACT does not violate any provision of its Bylaws or of the laws to which they submit. 
 c) the assignment and restriction of the RESTRICTED REVENUES contemplated in this CONTRACT, do not violate any provision or clause contained in a covenant to which the BENEFICIARY or the
INTERVENING PARTY JOINT GUARANTOR are parties. 
 d) that there is no legal impediment contained in covenants to which BENEFICIARY or the
INTERVENING JOINT GUARANTOR are parties, prohibiting the delivery of the RESTRICTED REVENUES covenanted herein, in favor of BNDES; 
 e)
the RESTRICTED REVENUES are free from any liens, questions, debts or encumbrances of any nature, except the assignment and restriction contemplated in this CONTRACT, answering exclusively for the obligations assumed in the
FINANCINGS. 
 18.6. The RESTRICTED REVENUES delivered in guarantee by the BENEFICIARY shall subsist until final and total liquidation
of the obligations assumed in the FINANCINGS, BENEFICIARY and the INTERVENING PARTY JOINT GUARANTOR being responsible for all and any losses caused to BNDES, resulting from falsehood or inaccuracy of the representations or
guarantees provided herein. 
 CLAUSE 19 
 COMMUNICATIONS AMONG THE PARTIES 
 19. The communications to be sent by any of the parties pursuant to the
terms of this CONTRACT shall be considered delivered when received under docket or with “confirmation of receipt” issued by the Brazilian Postal Service or by telegram at the addresses below. Communications by fax shall be considered
received on the date sent, provided that their receipt is confirmed by an indication (receipt issued by the machine used by the sender). The respective originals shall be sent to the addresses below within 2 (two) business days after transmission of
the message. The alteration of addresses listed below is subject to communication by the party who intends to do so to the others, and will only be effective with the affixation in the communication of a declaration of awareness by the parties who
receive it. 
 I. To BNDES: 
 Banco Nacional de
Desenvolvimento Econômico e Social – BNDES. 
 Av. Chile No. 100, Rio de Janeiro – RJ 
 Attn: Head of the Telecommunications Department, Infrastructure 
 Tel:
2172-6764 
 Fax: 2220-1627 
 II. To the CENTRALIZING
BANK: 
 Banco do Brasil S.A. 
 Quadra 1
– Bloco C – Lote 32 – Edifício Sede – 6o andar

 Cidade de Brasília, DF 
 Attn: Allan Simões
Toledo 
 Tel: (61) 3310-5353 
  

 24 

 Fax: (61) 3310-4090 
 III – To the REPRESENTATIVE BANK: 
 Banco Itaú S.A. 
 Av. Eng. Armando Arruda Pereira No. 707 – Torre Eudoro Vilella – 9 andar 
 São Paulo – SP

 Attn.: Antonio Carlos Rodrigues 
 Tel: (11) 5029-1527

 Fax: (11) 5029-1535 
 IV – To BENEFICIARY:

 Brasil Telecom S.A. 
 SIA – SUL ASP – Lote D Bloco B

 71.215-000, Brasilia – DF 
 Attn.: Edinelson Oliveiraw

 Tel: (61) 3415-1209 
 Fax: (61) 3415-1358 

V – To INTERVENING PARTY JOINT GUARANTOR: 
 Brasil Telecom
Participações S.A. 
 SIA – SUL – Lote D – Bloco B 
 71.215-000, Brasilia – DF 
 Attn.: Edinelson Oliveira 
 Tel.: (61) 3415-1209 
 Fax: (61) 3415-1358 
 CLAUSE 20 
 VENUE 
 The Forum of the Central Judiciary District of the Capital of the State of Rio de Janeiro is hereby elected to settle any question arising out of this contract, with the
express waiver of any other, however privileged. 
 The pages of this instrument are initialed by Antonio Carlos do Amaral Przedowski, lawyer of
BNDES, by authorization of the undersigned legal representative(s). 
 IN WITNESS WHEREOF, the parties sign this instrument in 4 (four) counterparts of
equal content and form before the 02 (two) undersigned witnesses: 
  

					
	Rio de Janeiro, September 21, 2006	 		 	
			
	/s/ [signature]        	 		 	/s/ [signature]        
	(stamp illegible)	 		 	(stamp illegible)

 BRASIL TELECOM S.A. 
 BENEFICIARY 
  

					
			
	/s/ Eduardo Rath Fingeri        	 		 	/s/ Wagner Bittencourt
	Eduardo Rath Fingeri	 		 	Wagner Bittencourt
	Officer	 		 	Officer

 BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES 
  

	
	
	/s/ Eduardo José Lima Cunha
	Eduardo José Lima Cunha
	Corporate Branch Manager

 BANCO DO BRASIL S.A. 
 CENTRALIZING AGENT 
  

 25 

					
			
	/s/ João Paulo S. Euvaldo	 		 	/s/ Mônica Lopes Carvalho Rodrigues
	João Paulo S. Euvaldo	 		 	Mônica Lopes Carvalho Rodrigues
	Commercial Manager	 		 	Supervisor Shareholders Service
	003841996	 		 	

 BANCO ITAÚ 
 REPRESENTATIVE BANK 
 INTERVENING PARTY JOINT GUARANTOR: 
  

					
			
	/s/ [signature]	 		 	/s/ [signature]      
	(stamp illegible)	 		 	(stamp illegible)

					
			
	WITNESSES:	 		 	
	/s/ [signature]	 		 	  
	Name: illegible	 		 	Name:
	ID: 27-874/D CREA/MG	 		 	ID:

 Signature page of Contract of Concession and Assignment of Revenues and Other Covenants, executed by BNDES and
Brasil Telecom S.A., with intervention by Brasil Telecom Participações S.A.) 
  

	
	
	/s/ Ricardo Lagruca Siqueira
	Ricardo Lagruca Siqueira
	Legal Manager

  

 26 

 ATTACHMENT I to Contract of Assignment and Restriction of Revenues and Other Covenants by and between Banco Nacional
de Desenvolvimento Econômico e Social – BNDES and BRASIL TELECOM S.A., with third party intervention. 
 LIST OF COLLECTING BANKS

  

							
	ITEM  	 	NAME OF BANK  	 	BANK  
CODE  	 	MONTHLY AVERAGE OF FUNDS COLLECTED IN PERIOD FROM JANUARY TO JUNE
2006 (R$)
	1	 	CAIXA ECONÔMICA FEDERAL (INCLUDING FUNDS COLLECTED BY LOTTERY ESTABLISHMENTS)	 	 	 	 
	2	 	BANCO DO BRASIL S.A. (INCLUDING FUNDS COLLECTED BY CORREIOS EBCT AND CONTA BOLETO – PHONE CARD)	 	 	 	 
	3	 	BANCO BRADESCO S.A.	 	 	 	 
	4	 	BANDO DO ESTADO DO RIO GRANDE DO SUL S.A.	 	 	 	 
	5	 	BANCO ITAÚ S.A.	 	 	 	 
	6	 	HSBC BANK BRASIL S.A. - BANCO MÚLTIPLO	 	 	 	 
	7	 	BANCO DO ESTADO DE SANTA CATARINA – BESC	 	 	 	 
	8	 	BANCO COOPERATIVO SICRÉDI – BASINCREDIT	 	 	 	 
	9	 	UNIBANCO – UNIÃO DE BANCOS BRASILEIROS S.A.	 	 	 	 
	10	 	BANCO DE BRASILIA S.A.	 	 	 	 
	11	 	BANCO ABN AMRO REAL S.A.	 	 	 	 
	12	 	BANCO SANTANDER MERIDIONAL S.A.	 	 	 	 
	13	 	BANCO SANTANDER BRASIL S.A.	 	 	 	 
	14	 	BANCO CITIBANK S.A.	 	 	 	 
	15	 	BANCO SUDAMERIS BRASIL S.A.	 	 	 	 
	16	 	BANCO MERCANTIL DO BRASIL S.A.	 	 	 	 
	17	 	BANK BOSTON BANCO MÚLTIPLO S.A.	 	 	 	 
	18	 	BANCO AMAZÔNIA S.A.	 	 	 	 
	19	 	BANCO SAFRA S.A.	 	 	 	 
	20	 	BANCO DO ESTADO DE SÃO PAULO - BANESPA	 	 	 	 
	 	 	TOTAL	 	 	 	 

  

 27 

 ATTACHMENT II to Contract of Assignment and Restriction of Revenues and Other Covenants by and between Banco Nacional
de Desenvolvimento Econômico e Social – BNDES and BRASIL TELECOM S.A., with third party intervention. 
 COLLECTING ACCOUNTS

  

							
	COMPANY	 	CORPORATE
TAXPAYER
REGISTER - CNPJ  	 	BRANCH  	 	COLLECTING
ACCOUNT
	 ACRE BRASIL TELECOM S/A
	 	 	 	 	 	 
	 RONDÔNIA BRASIL TELECOM S/A
	 	 	 	 	 	 
	 MATO GROSSO BRASIL TELECOM S/A
	 	 	 	 	 	 
	 MATO GROSSO DO SUL BRASIL TELECOM S/A
	 	 	 	 	 	 
	 GOIÁS BRASIL TELECOM S/A
	 	 	 	 	 	 
	 DISTRITO FEDERAL BRASIL TELECOM S/A
	 	 	 	 	 	 
	 PARANÁ BRASIL TELECOM S/A
	 	 	 	 	 	 
	 SANTA CATARINA BRASIL TELECOM S/A
	 	 	 	 	 	 
	 RIO GRANDE DO SUL BRASIL TELECOM S/A
	 	 	 	 	 	 
	 PELOTAS BRASIL TELECOM S/A
	 	 	 	 	 	 

  

 28 

 ATTACHMENT III to the Contract of Assignment and Restriction of Revenues and Other Covenants by and between Banco
Nacional de Desenvolvimento Econômico e Social – BNDES and BRASIL TELECOM S.A., with third party intervention. 
 List of loans in favor of
which the structure of accounts and procedures of assignment and restriction of revenues formalized in the CONTRACT is established: 
 A) Loan Agreement by
of Extension of Credit No. 00.2.542.3.1, in the amount of R$ 519,000,000.00 (five hundred and nineteen million reais), executed on 11/24/2000, by BNDES and BENEFICIARY and its respective amendments; 
 B) Loan Agreement by Extension of Credit No. 00.2.654.3.1, in the amount of R$ 134,460,000.00 (one hundred and thirty-four million, four hundred and sixty thousand
reais), executed on 12/13/2000, by BNDES, COMPANHIA RIOGRANDENSE DE TELECOMUNICAÇÕES - CRT and the INTERVENING PARTY JOINT GUARANTOR, BENEFICIARY, as a result of the incorporation, succeeded CRT in this contract and its
respective amendments; 
 C) Loan Agreement by Extension of Credit No. 02.2.735.3.1, in the amount of R$ 97,600,200.00 (ninety-seven million, six
hundred thousand and two hundred reais), executed on 11/25/2000, by BNDES and BENEFICIARY, and its respective amendments; 
 D) Loan Agreement by
Extension of Credit No. 04.2.559.3.1, in the amount of R$ 1,267,593,000.00 (one billion, two hundred and sixty-seven million, five hundred and ninety-three thousand reais), executed on 08/13/2004, by BNDES and BENEFICIARY and its
respective addenda. 
  

 29 

 ATTACHMENT IV to the Contract of Assignment and Restriction of Revenues and Other Covenants by and between Banco
Nacional de Desenvolvimento Econômico e Social – BNDES and BRASIL TELECOM S.A., with third party intervention. 
 NOTIFICATION TO
COLLECTING BANKS 
  

			
	CT-DOF[...]/2006	 	Brasilia, [...] July, 2006

 To 
 BANK [...]

 [full address] 
 Attn.: Mr. [....] 

Re: NOTIFICATION FOR DEPOSIT OF FUNDS IN FAVOR OF BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES AND OF THE FINANCE AGENTS ONLENDERS OF
BNDES FUNDS 
 Dear Sirs, 
 Whereas: 
 1. Banco Nacional de Desenvolvimento Social – BNDES, hereinafter simply referred to as LENDER 1, executed with BRASIL TELECOM S.A. the Loan Agreements
by Extension of Credit No. 00.2.654.3.1, No. 00.2.542.3.1, No. 02.2.735.3.1 and No. 04.2.559.3.1, as amended, hereinafter referred to jointly as LOAN 1. 
 2. The Consortium formed by Banco Alfa de Investimento S.A., Banco Itaú S.A., Banco do Brasil S.A., Banco Bradesco S.A., Banco Votorantim S.A., UNIBANCO – União de Bancos Brasileiros S.A. and Banco
Safra S.A., hereinafter simply referred to as LENDER 2, executed with BRASIL TELECOM S.A., the Loan Agreement by Extension of Fixed Credit BNDES/FINEM No. 1999488, hereinafter referred to as LOAN 2. 
 3. The Consortium formed by Banco Citibank S.A., Financeira Alfa S.A. – CFI , Banco Itaú S.A., Banco do Brasil S.A., Banco Bradesco S.A., UNIBANCO –
União de Bancos Brasileiros S.A., hereinafter simply referred to as LENDER 3, executed with BRASIL TELECOM S.A., the Loan Agreement by Extension of Fixed Credit BNDES No. 543/2000, hereinafter referred to as LOAN 3.

 4. The Consortium formed by Banco Citbank S.A., Banco Itaú S.A., Banco do Brasil S.A., Banco Bradesco S.A., Banco Safra S.A., UNIBANCO
– União de Bancos Brasileiros S.A., Banco ABN AMRO Real S.A., and Bankboston Banco Múltiplo S.A., hereinafter simply referred to as LENDER 4, executed with BRASIL TELECOM S.A., the Loan Agreement by Extension of
Fixed Credit BNDES No. 736/2002, hereinafter LOAN 4. 
 5. BRASIL TELECOM S.A. and LENDERS 1, 2, 3 and 4, executed CONTRACTS OF
COLLECTION, DEPOSIT WITH INTERVENTION AND OTHER COVENANTS (the “COLLECTION AGREEMENTS”), with the purpose of restricting in favor of all the creditors the revenue from the provision of telecommunication services by
BENEFICIARY to the users, pursuant to the terms contemplated therein, in guarantee of compliance with the obligations assumed in these loans. 
 6.
According to the provisions of LOAN 1, 2, 3 and 4, and of the COLLECTION AGREEMENTS, BRASIL TELECOM, in the capacity of BENEFICIARY instructed you about the procedures to be adopted for the implementation of the restriction and
transfer of the revenue collected for purposes of effective constitution of the guarantee. 
 7. BRASIL TELECOM S.A. and LENDERS 1, 2, 3 and
4 decided to dissolve the COLLECTION AGREEMENTS, that deal separately with the guarantee of each creditor, in function of each loan granted, having been executed on [...], Articles of Dissolution for each of the COLLECTION AGREEMENTS
(the “ARTICLES OF DISSOLUTION”). 
  

 30 

 8. As a result of the execution of the ARTICLES OF DISSOLUTION, the Contract of Assignment and Restriction of
Revenues and Other Covenants was executed with BNDES to guarantee LOAN 1, and the Contracts of Assignment with LENDERS 2, 3 and 4, in which BENEFICIARY assigns and restricts revenues in favor of LENDERS 1, 2, 3 AND
4. 
 9. WE NOTIFY you hereby about the new instructions, which shall be followed from on and after [...], you being instructed to adopt the
procedures described hereafter for the implementation of the new mechanism of restriction of revenue, to guarantee the payment of the obligations assumed in LOAN 1, 2, 3 and 4 and other loans to executed by BRASIL TELECOM and
BNDES, directly or indirectly. 
 New instructions to be observed for the assignment and restriction of revenues by BRASIL TELECOM S.A. as
guarantee to LENDERS 1, 2, 3 and 4; 
 1.a. the values collected in your branches, arising out of the payment of the invoices, effected by the users,
resulting from telecommunication services offered by BRASIL TELECOM S.A., shall be transferred to the same holder(s), on the business day following that of the effective receipt for the COLLECTING ACCOUNTS held by BRASIL TELECOM
held in the branch of Banco do Brasil, according to the list of branches below: 
  

					
	BRANCH	  	BRANCH    	  	COLLECTING ACCOUNT
	 ACRE BRASIL TELECOM
	  	3307-3    	  	 
	 RONDÔNIA BRASIL TELECOM
	  	 	  	 
	 MATO GROSSO BRASIL TELECOM
	  	 	  	 
	 MATO GROSSO DO SUL BRASIL TELECOM
	  	 	  	 
	 GOIÁS BRASIL TELECOM
	  	 	  	 
	 DISTRITO FEDERAL BRASIL TELECOM
	  	 	  	 
	 PARANÁ BRASIL TELECOM
	  	 	  	 
	 SANTA CATARINA BRASIL TELECOM
	  	 	  	 
	 RIO GRANDE DO SUL BRASIL TELECOM
	  	 	  	 
	 PELOTAS BRASIL TELECOM
	  	 	  	 

 1.b. this transfer order to the Collecting Accounts specified above, comes into effect from [...]. 
 1.c. these instructions will remain in effect until a term of release is presented – or modification – signed jointly by BRASIL TELECOM S.A. and by
LENDER 1. 
 Affixing your “in agreement” at the end of this instrument, you declare to be aware of the provisions herein and undertake to make
the transfers of funds as set forth herein. 
 As evidence of your consent with the terms hereof, please sign in the location indicated below, returning to
us in five counterparts, which will be sent by us to LENDER 1. 
 Truly yours, 
  
  
 BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL – BNDES 
  
  
 BY LENDER 2 – BANCO ALFA DE INVESTIMENTO S.A. 
  
  
 BY LENDER 3 – BANCO ITAÚ S.A. 
  
  
 BY LENDER 4 – BANCO ITAÚ S.A. 
  
  
 BRASIL TELECOM S.A. 
 Corporate Taxpayer Register CNPJ/MF No. 76.535.764/0001-43 
  

 31 

	
	
	  
	BANK [...] S/A

  

					
	WITNESSES:	 		 	
			
	  	 		 	  
	 NAME:
 ID:
 CPF:
	 		 	 NAME:
     ID:

     CPF:

  

 32Private Instrument of Indenture of the Third Issuance of Simple Debentures

 Exhibit 10.21 
 PRIVATE DEED FOR THE THIRD ISSUANCE OF SIMPLE DEBENTURES NOT 
 CONVERTIBLE INTO SHARES, IN A SINGLE
SERIES, AS A SUBORDINATED ASSET OF 
 TELEMAR NORTE LEST S.A. 
 A Private Deed for the Third Issuance of Simple Debentures Not Convertible into Shares, in a Single Series, as a Subordinated Asset (hereinafter referred to as “DEED”), undertaken by TELEMAR NORTE LESTE
S.A., a corporation with headquarters in the City of Rio de Janeiro, State of Rio de Janeiro, Brazil, at Rua General Polidoro, 99, Botofogo, enrolled with the Brazilian Corporate Taxpayers’ Roll with the Ministry of Finance (CNPJ/MF) under
No. 33.000.118/0001-79, represented herein according to its Company Bylaws (hereinafter referred to as “ISSUER”), pursuant to the following clauses and conditions: 
 CLAUSE I – AUTHORIZATION 
 The present Deed is signed based on the decisions made at the
Board of Directors Meeting (“RCA”) and the Oversight Board Meeting (“RCF”) on October 30, 2008, as well as at the Extraordinary Shareholders’ Meeting (hereinafter referred to as “AGE”) of the ISSUER’S
shareholders held on December 9, 2008. 
 CLAUSE II – REQUIREMENTS 
  

	2.	The issuance of debentures (hereinafter referred to as “DEBENTURES”) dealt with in the present DEED shall be undertaken in compliance with the following requirements:

  

	2.1	Enrollment of the DEED with the Commerce Registry: The present DEED shall be enrolled with the Commerce Registry, as per Law No. 6.404 of 12/15/1976, amended by Law
No. 10.303 of 10/31/2001. 

  

	2.2	Filing and Publication of the Minutes of the Issuer’s Extraordinary Shareholders’ Meeting: The Issuer’s shareholders approved the present Issuance in an AGE
held on December 9, 2008, whose minutes shall be filed with the Rio de Janeiro Chamber of Commerce and published in the Rio de Janeiro State Gazette and in the newspaper Valor Econômico within the legal deadline.

 CLAUSE III – CHARACTERISTICS OF THE ISSUANCE 
  

	3.1	Issuer’s Corporate Objective: The objective of the Issuer’s company is to develop telecommunications services and activities necessary or useful to execute these
services, in compliance with concessions, authorizations and permissions granted to it. 

  

	3.2	Issuance Number: The issuance set forth in the present Deed (hereinafter referred to as “Issuance”) constitutes the fourth issuance of Debentures by the Issuer, and
the third private issuance. 

  

	3.3	Total Issuance Amount: The total amount of the present Issuance is R$3,500,000,000.00 (three billion and five hundred million reais) in a single series, on the Issue
Date, as determined below, and may be increased by 20% additional debentures depending on the demand. 

  

	3.4	Destination of Funds: The funds obtained by the present Issuance shall be employed for the Issuer’s corporate purposes. 

  

	3.5	Placement: The Debentures shall be placed privately. 

 CLAUSE IV – CHARACTERISTICS OF THE DEBENTURES 
  

	4.1	Basic Characteristics 

  

	4.1.1	Total Issuance Amount: The total amount of the Issuance is up to R$3,500,000,000.00 (three billion and five hundred million reais) on the Issue Date, as determined in
Item 4.1.5, and may be increased by 20% additional debentures depending on the demand. 

	4.1.2	Nominal Unit Price: The nominal unit price of the Debentures is R$100,000.00 (one hundred thousand reais) on the Issue Date, as determined below.

  

	4.1.3	Series Number: The Issuance shall be in a single series. 

  

	4.1.4	Quantity of Debentures: A total of 35,000 (thirty-five thousand) Debentures shall be issued, which may be increased by 20%. 

  

	4.1.5	Issue Date: For all legal effects the Issue Date of the Debentures shall be December 11, 2008. 

  

	4.1.6	Due Date and Deadline: The principal of the Debentures shall be owed in a single installment 60 (sixty) months after the Issue Date, that is, on December 11, 2013
(hereinafter referred to as “DUE DATE”), on which date the Issuer shall undertake to pay for the Debentures that are still in circulation. 

  

	4.1.7	Form and Type: The Debentures shall be nominative and registered, without issuing certificates. 

  

	4.1.8	Class (Convertibility): The Debentures shall be a simple class and not convertible into the Issuer’s shares. 

  

	4.1.9	Type: The Debentures shall not be preferential, shall not have guarantees and shall be subordinated to the Issuer’s other creditors. 

  

	4.2	Remuneration: Observing Item 4.2.2 below, the Debentures shall be entitled to remuneration (hereinafter referred to as “REMUNERATION”) equal to 100% (one
hundred percent) of the average daily interest rate for “over extra group” Interfinancial Deposit Certificates – CDI, expressed as an annual percentage based on 252 days, calculated and disclosed by the CETIP – Securities Custody
and Liquidation Center, hereinafter referred to as “DI Rate”, plus a spread of 4.0% (four percent) annually, based on 252 days. 

 Such remuneration shall be calculated exponentially and cumulatively on a prorated basis by the number of business days that have elapsed, incurring on the nominal value of the Debentures as of the Issue Date up to the date on which they
are actually paid. 
  

	4.2.1	Valid Period for Remuneration: The remuneration conditions determined above shall have a effective period as of the Issue Date up to the Due Date, during which period of time
no changes shall be made to the remuneration conditions determined in this Issue Deed. 

  

	4.2.2	Formula to Calculate Remuneration: 

 

 
  

			
	In which:	  	 
	 J
	  	= Remuneration amount owed on the Due Date
	 Vne
	  	= Nominal value of Debenture on the Issue Date
	 DI Factor
	  	= product of the DI Rates, of the Issue Date, inclusive, up to the calculation date, exclusive;

 

 
 In which: 

			
	 nDI
	  	= total number of DI rates between the Issue Date (inclusive) and the calculation date, exclusive;

  

 2 

			
	 TDIk
	  	= DI rate, expressed daily;

 

 
 DIk = DI rate disclosed by CETIP; 
  

			
	 Spread
	  	= 4.0% (four percent) annually, based on 252 days;
	 N
	  	 =       252 days;

	 n
	  	 =       number of business days between the Due Date or the Debenture acquisition date, as per the terms
of Item 5.1 below, and the Issue Date.

  

	4.2.3	Determination of DI Rate: If on the assessment date of the amount of any pecuniary obligation set forth in this Issue Deed the DI rate is unknown that is applicable to determine the
Remuneration due to non-disclosure of the same, as a substitute the same daily rate shall be used that is produced by the last DI rate known plus the spread up to the calculation date, and no financial compensations shall be owed by neither the
Issuer nor the Debenture holders at the time of later disclosure of the DI Rate. 

  

	4.2.3.1	If the lack of disclosing the DI Rate persists for a period of more than 5 (five) days or if the DI Rate may no longer be utilized as a reference to remunerate the Debentures,
whether by substitution of a legal or regulatory standard or whether by no longer being considered as “representative”, the Issuer may determine new remuneration criteria to be utilized as a “Rate to Substitute the DI Rate”,
provided such criteria is approved by at least 50% (fifty percent) of the Debentures in circulation. 

  

	4.2.4	The DI Rate should be utilized considering an identical number of decimal places as disclosed by the agency responsible for its calculation. 

  

	4.3	Early Liquidation Option: The Issuer, at any time and at its own discretion, by forwarding prior communication at least 2 (two) days in advance to each Debenture holder, may
carry out an early liquidation, in whole or in part, of the nominal unit value of the Debentures in circulation. 

 In the event of a partial
early liquidation of the Debentures, the amounts paid as an optional early liquidation by the Issuer as per the terms in this Clause 4.3, shall be prorated for each of the Debentures in circulation. 
  

	4.4	Rollover: The Debentures shall have no rollover. 

  

	4.5	Issuance Limits: As per §4 in Article 60 in Law No. 6.404/76 and since the issuance is a subordinated type of Debentures, the Issuance shall not be bound to the
limits stipulated in the aforementioned Article. 

  

	4.6	Subscription 

  

	4.6.1	Subscription Deadline: The Debentures shall be subscribed to within a deadline of up to 3 (three) years, as of the Issue Date, in compliance with the requirements established
in Items 2.1 and 2.2 of this Deed. 

  

	4.6.2	Subscription Price: The Debentures shall be subscribed to at their nominal value plus the Remuneration calculated on a prorated basis, determined as of the Issue Date until
the actual pay-in date. 

  

	4.6.3	Paying-In: Paying-in shall be carried out in cash at the time of subscription in Brazilian national currency. 

  

	4.7	Payment Conditions 

  

 3 

	4.7.1	Payment Method: The payments to which the Debentures are entitled shall be made directly by the Issuer at its headquarters or through a financial institution indicated to the
debenture holders. 

  

	4.7.2	Extending Deadlines: Any deadlines for the payments or events mentioned in this Deed, including by the debenture holders in regard to payment of the subscription price, are
extended up to the first subsequent business day, in the event the deadline for compliance with the obligation or event coincides with a day on which there is no commerce open or a there is a bank holiday in the City of Rio de Janeiro, State of Rio
de Janeiro, Brazil, or in the City of São Paulo, State of São Paulo, Brazil, with no increase to the amounts to be paid. 

  

	4.7.3	Default Charges: In the event of a delay in paying any amount owed to the debenture holders, the debts due and unpaid by the Issuer shall be subject to a non-compensatory
fine of 2% (two percent) and default interest of 1% (one percent) per month, and both shall be calculated on the amounts in default plus the Remuneration owed as per the terms of this Deed, as of the default date until the actual payment date,
regardless of any notice, notification or judicial or extrajudicial interpellation. 

  

	4.7.4	Loss of Rights to Increases: Without prejudice to the provisions in the previous item, if the debenture holder does not present himself to receive the amount corresponding to
any of the Issuer’s obligations on the dates set forth in this Deed or in a notification published by the Issuer, the same shall not be entitled to receive any remunerations and/or default charges for the default period; however, the same shall
be ensured the rights acquired up to the date of the respective due date. 

 CLAUSE V – PURCHASE OF THE SECURITIES BY
THE ISSUER 
  

	5.1	Optional Acquisition: The Issuer may, at any time, acquire Debentures from this Issuance in circulation for a price not greater than their nominal unit value, plus the
prorated Remuneration, observing the provisions in §2 in Article 55 in Law No. 6.404/76. The Debentures in such acquisition may be cancelled, remain in the Issuer’s treasury or be alienated by the Issuer, observing the precepts set
forth in law. 

 CLAUSE VI – COMMUNICATIONS 
  

	6.1	Publicity: All acts and decision of any type that involve the interests of the debenture holders must be communicated in notices in the national edition of the newspaper Valor
Econômico. 

 CLAUSE VII – ISSUER’S DECLARATIONS 
  

	7.1	The Issuer hereby declares that: 

  

	a)	It is a commercial company duly organized, established and exists according to Brazilian laws; 

	b)	The people as representatives that sign this Issue Deed have the power to do so; 

	c)	All company authorizations necessary to enter into this Issue Deed and to comply with all obligations assumed in this Issue Deed were obtained and are currently valid, effective and
in full force and effect; 

	d)	This Issue Deed constitutes the Issuer’s enforceable, valid and effective obligation; 

	e)	The Issuer’s Financial Statements on September 30, 2008 correctly represent the Issuer’s financial status on such dates and were duly prepared in compliance with the
Good Accounting Practices accepted in Brazil; 

	f)	The Issuer, according to its understanding, is in compliance with the laws, regulations and administrative standards and determinations made by government agencies, autarchies and
courts, applicable to conducting its business. 

 CLAUSE VIII – GENERAL PROVISIONS 
  

	8.1	Waiver: There is no presumption that any of the rights resulting from the present Deed have been waived. Thus, no delay, omission or generosity in exercising any right,
option or remedy appropriate for the debenture holders due to any default by the Issuer shall prejudice the exercising of such rights, options or remedies, or shall be interpreted as constituted a waiver of the same or agreement with such default,
or constitute novation or precedent in relation to any other default or delay. 

  

 4 

	8.2	Amendments: The present instrument as well as any terms and conditions related to the Debentures, whether or not essential, may only be amended with the approval of the
debenture holders representing at least 50% of the Debentures in circulation. 

  

	8.3	Applicable Legislation and Court Jurisdiction: The present Deed shall be governed by the laws in the Federative Republic of Brazil, the court jurisdiction in the City of Rio
de Janeiro, State of Rio de Janeiro, Brazil, is hereby elected to settle any doubts or controversies arising from this Deed, with express waiver of any other, however privileged. 

 THE PRESENT DEED IS SIGNED IN 2 (TWO) COPIES OF EQUAL CONTENT AND FORM IN THE PRESENCE OF THE UNDERSIGNED WITNESSES. 
 Rio de Janeiro, December 11, 2008 
 Signatures: 
 /s/
[Signature]                                 
 TELEMAR NORTE LESTE S.A. 
 WITNESSES: 
 /s/ Eduardo [illegible] Coelho         
 Name: Eduardo [illegible] Coelho 
 CPF/MF No.: 220.075.558-22 
 /s/ Marcella Abdelary                     
 Name: Marcella Abdelary 
 CPF/MF No.: 00.984.207-88 
  

 5 

 TELEMAR NORTE LESTE S.A. 
 CNPJ 33.000.118/0001-79 
 Rua General Polidoro, 99, Bairro Botafogo

 Rio de Janeiro, RJ, Brazil, CEP: 22280-0004 
 Date: 3/12/2009
                                         
           No. 0003 
 NON-CONVERTIBLE DEBENTURE SUBSCRIPTION BULLETIN 

 ISSUANCE CHARACTERISTICS 
  
 Private issue of 35,000 debentures not convertible into shares, in a Single Series from the 3rd Issuance, with a nominal unit price of R$100,000.00 (one hundred thousand reais) on the issue date of 12/11/2008, all registered, subordinated and not convertible into shares as per the decision by the AGE on
12/9/2008, in the total amount of R$3,500,000,000.00 (three billion and five hundred million reais), whose characteristics are set forth in the Issue Deed dated 12/11/2008. 

 SUBSCRIBER’S DATA 
  

													
	 Company
Name:
 14 BRASIL TELECOM CELULAR S.A.
	  	 	  	 CNPJ No.:

 05.423.963/0001-11

	 Address:
 ST SIA SUL – AREA ESPECIAL D
	  		  	 No.
 s/n
	  		  	 Additional:
 Block B
 Ground Floor
 Part A

	 District:
 Guara
	  	 CEP:
 71.215-000
	  	 City:
 Brasilia
	  	State	  	 	  	 Country:
 Brazil
	  	 

 DEBENTURES SUBSCRIBED 
  

							
	ISSUANCE/SERIES	  	QUANTITY	  	 UNIT
 SUBSCRIPTION
 PRICE
	  	 TOTAL AMOUNT
 TO PAY

	 3rd / Single
	  	2,884.7635613	  	R$103,994.66	  	R$300,000,000.00

 PAYMENT METHOD 
  

							
	In Current Account    
No.    
	 	Bank No.                    	 	Branch No.                    
	 	 Subscription Method                
 CASH                

	4783-X    	 	001                    	 	1755-8                    	 	 

 The subscription credit amount should be made in the name of Telemar Norte Leste S/A – CNPJ
33.000.118/0001-79, by means of a TED bank operation. 
  
 I hereby declare for all due purposes that I am in agreement with the conditions expressed in the present bulletin, as
well as informed about the Private Deed for the Third Private Debenture Issuance of a Subordinated Type by Telemar Norte Leste S/A on 12/11/2008. 
 Rio de Janeiro, March 12, 2009 
 /s/
[Signature]                                      
       
 14 BRASIL TELECOM CELULAR S.A. 
 CNPJ 05.423.963/0001-11 

 RECEIPT 
  

			
	 We have received from the subscriber the
amount of R$300,000,000.00 (three hundred million reais) for paying-in the amount indicated in this bulletin.
	 	 /s/ [Signature]                                
 TELEMAR NORTE LESTE S/A
 CNPJ 33.000.118/0001-79

  

 6 

 TELEMAR NORTE LESTE S.A. 
 CNPJ 33.000.118/0001-79 
 Rua General Polidoro, 99, Bairro Botafogo

 Rio de Janeiro, RJ, Brazil, CEP: 22280-0004 
 Date:
2/17/2009                                        
            No. 0002 
 NON-CONVERTIBLE DEBENTURE SUBSCRIPTION BULLETIN

 ISSUANCE CHARACTERISTICS 
  
 Private issue of 35,000 debentures not convertible into shares, in a Single Series from the 3rd Issuance, with a nominal unit price of R$100,000.00 (one hundred thousand reais) on the issue date of 12/11/2008, all registered, subordinated and not convertible into shares as per the decision by the AGE on
12/9/2008, in the total amount of R$3,500,000,000.00 (three billion and five hundred million reais), whose characteristics are set forth in the Issue Deed dated 12/11/2008. 

 SUBSCRIBER’S DATA 
  

													
	 Company
Name:
 BRASIL TELECOM PARTICIPAÇÕES S.A.
	  	 	  	 CNPJ No.:

 02.570.688/0001-70

	 Address:
 ST SIA SUL – AREA ESPECIAL D
	  		  	 No.
 s/n
	  		  	 Additional:
 Block B
 Part B

	 District:
 Guara
	  	 CEP:
 71.215-000
	  	 City:
 Brasilia
	  	State	  	 	  	 Country:
 Brazil
	  	 

 DEBENTURES SUBSCRIBED 
  

							
	ISSUANCE/SERIES	  	QUANTITY	  	 UNIT
 SUBSCRIPTION
 PRICE
	  	 TOTAL AMOUNT
 TO PAY

	 3rd / Single
	  	11,648.1162327	  	R$103.020,95	  	R$1,200,000,000.00

 PAYMENT METHOD 
  

							
	In Current Account    
No.    
	 	Bank No.                    	 	Branch No.                    
	 	 Subscription Method                
 CASH                

	4783-X    	 	001                    	 	1755-8                    	 	 

 The subscription credit amount should be made in the name of Telemar Norte Leste S/A – CNPJ
33.000.118/0001-79, by means of a TED bank operation. 
  
 I hereby declare for all due purposes that I am in agreement with the conditions expressed in the present bulletin, as
well as informed about the Private Deed for the Third Private Debenture Issuance of a Subordinated Type by Telemar Norte Leste S/A on 12/11/2008. 
 Rio de Janeiro, February 17, 2009 
 /s/
[Signature]                                      
               
 BRASIL TELECOM PARTICIPAÇÕES S.A.

 CNPJ 02.570.688/0001-70 

 RECEIPT 
  

			
	 We have received from the subscriber the
amount of R$1,2000,000,000.00 (one billion and two hundred million reais) for paying-in the amount indicated in this bulletin.
	 	 /s/ [Signature]                                
 TELEMAR NORTE LESTE S/A
 CNPJ 33.000.118/0001-79

  

 7

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