AMERICA ONLINE LATIN AMERICA INC
AMENDMENT NO. 11 TO MASTER AGREEMENT
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>8
<FILENAME>g77673exv10w4.txt
<DESCRIPTION>AMENDMENT NO. 11 TO MASTER AGREEMENT
<TEXT>
<PAGE>
Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                                                    EXHIBIT 10.4



--------------------------------------------------------------------------------


          11TH INSTRUMENT OF AMENDMENT TO CONTRACT NO. VES-8-IDN-1-1999
                          EXECUTED ON OCTOBER 18, 1999



AOL BRASIL LTDA. with registered office at Avenida Industrial, 600, 2nd floor,
ZIP CODE 08090-500, in the City of Sao Paulo, State of Sao Paulo, registered
with CNPJ/MF under No. 03,032,579/0001-62, represented herein pursuant to its
Articles of Association, hereinafter referred to as "AOL", and EMPRESA
BRASILEIRA DE TELECOMUNICACOES S.A. - EMBRATEL, with registered office at Av.
Presidente Vargas, 1012, CEP 20179-900, in the City of Rio de Janeiro, State of
Rio de Janeiro, registered with CNPJ/MF under No. 33,530,486/0001-29,
represented herein pursuant to its Bylaws, hereinafter referred to as
"EMBRATEL", both also collectively referred to as PARTIES and, individually, as
PARTY;

WHEREAS:

A. On October 18, 1999, the Parties entered into a "Master Agreement for Value
Added Services (BRAZIL)", hereinafter referred to as the AGREEMENT;

B. The AGREEMENT was the object of amendments Ad. 001/00, Ad. 002/00, Ad.003/00,
Ad. 004/01, Ad. 005/01, Ad. 006/01, Ad. 007/01, Ad. 008/01, Ad. 009/01 and Ad.
010/02 executed, respectively, on May 10, 2000, September 29, 2000, December 27,
2000, April 25, 2001, July 4, 2001, July 31, 2001, September 21, 2001, November
11, 2001, December 03, 2001 and April 3, 2002;

C. The Parties wish to modify some of the terms and conditions of the AGREEMENT
and, particularly, the price for the supply of Dedicated Modems:

NOW, THEREFORE, the parties have agreed to execute this 11th Instrument of
Amendment to the AGREEMENT (hereinafter referred to as the AMENDMENT), as
follows:

The terms and expressions in capital letters are defined and have the same
meaning as established in the AGREEMENT.


<PAGE>

SECTION ONE - SUBJECT MATTER

The subject matter of this AMENDMENT is the modification of the terms of the
AGREEMENT, as set forth hereinbelow:

         1.1      The price to be paid by AOL for each Dedicated Modem shall
                  hereafter be: a) [**] per month during the year [**]; (b) [**]
                  per month during the year [**]; and (c) [**] per month from
                  [**] until expiration of the term of this Agreement. Such
                  amounts do not include taxes, which shall be borne by AOL, in
                  accordance with the terms of the Agreement. Such amounts shall
                  be hereafter applicable to all Dedicated Modems already
                  contracted for and to all Dedicated Modems that may be
                  requested by AOL to EMBRATEL as of the date of execution of
                  this AMENDMENT. Such prices shall be effective as of the date
                  of execution of this AMENDMENT.

         1.2      As provided under Section 1.2 (a) of the Agreement, AOL may
                  request the transfer of any Dedicated Modem to any other city
                  where EMBRATEL offers such service. In such case, the price
                  payable for transfer of each Dedicated Modem so transferred
                  shall be [**], without taxes.

         1.3      The contracting for [**] Dedicated Modems in the localities
                  set forth in Annex I shall be cancelled as of the date of
                  execution of this AMENDMENT, the total number of active
                  Dedicated Modems on the date hereof being, therefore, [**],
                  allocated as set forth in Annex II. Cancellation of the
                  contracting for Dedicated Modems, as agreed to herein, will
                  not imply the payment of fines, taxes or penalties by AOL to
                  Embratel.

                  1.3.1      The Parties represent that, out of the total
                             Dedicated Modems contracted for by AOL up to the
                             present date, [**] Dedicated Modems, marked with an
                             (*) in Annex II, have not yet been installed by
                             EMBRATEL. The parties agree, for all purposes, that
                             as of the effective installation of such Dedicated
                             Modems by EMBRATEL, all the provisions contained in
                             this AMENDMENT that are applicable to Dedicated
                             Modems installed before/up to the date of execution
                             of this AMENDMENT shall be applicable to such
                             Dedicated Modems.

                  1.3.2      Because [**] Dedicated Modems have not been
                             installed by EMBRATEL, as referred to under
                             paragraph 1.3.1 above, and without prejudice to the
                             cancellation of the contracting for [**] Dedicated
                             Modems, as agreed under a provision in the head of
                             this Section 1.3, the effective disconnection of
                             [**] Dedicated Modems marked with an (*) in Annex I
                             shall occur to the extent that the Dedicated Modems
                             referred to under paragraph 1.3.1 shall be
                             effectively installed.


                                       2
<PAGE>


                  1.3.3      The Parties agree that no additional sum will be
                             payable, on whatever account, by AOL to EMBRATEL by
                             reason of the installation and effective
                             disconnection of Dedicated Modems as provided under
                             Paragraphs 1.3.1 and 1.3.2 above.

         1.4      The Parties agree to expressly exclude from the Agreement the
                  minimum requirement described in Section 1.1 of the Agreement,
                  concerning the obligation of AOL to contract for a minimum of
                  [**] Dedicated Modems during the term of the Agreement.

         1.5      Without prejudice to the provision under section 1.3 above,
                  during the period between [**] and [**], AOL shall (i) by
                  contracting and/or maintaining the contracted for number of
                  Dedicated Modems, provide a minimum net-of-taxes revenue for
                  EMBRATEL equal to [**]; and (ii) secure a minimum of [**]
                  activated Dedicated Modems every month. In the event the
                  revenue amount of [**] and [**] is not provided by AOL in the
                  aforementioned period, AOL shall pay the difference between
                  the amount effectively paid to Embratel and the amount of
                  [**], such difference to be included in the invoice for
                  services provided in the month of December 2002.

1.6 Notwithstanding any time set in the AGREEMENT and in any amendment thereto,
the term of validity of all of the [**] Dedicated Modems contracted for up to
the date of execution of this AMENDMENT is hereby extended for a term of
thirty-six (36) months from the date of execution hereof.

1.7 The terms of validity of new Dedicated Modems (where "new" shall refer to
Dedicated Modems contracted for after the execution of this Amendment) shall be
as follows:

                  1.7.1 After execution of this AMENDMENT, any and all Dedicated
                  Modems required by AOL from Embratel during the first
                  twenty-four (24) months from the date of execution hereof --
                  for localities where AOL already has Dedicated Modems
                  installed and active on the date of this AMENDMENT -- which
                  result in a total number of contracted for and activated
                  Dedicated Modems that is less than or equal to [**], shall be
                  subject to a term of validity not to exceed thirty-six (36)
                  months from the date of execution of this AMENDMENT.

                  1.7.2 Any and all Dedicated Modems required by AOL from
                  Embratel after the twenty-fifth (25th) month from the date of
                  execution of this AMENDMENT shall be subject to a term of
                  validity of thirty-six (36) months from the date of execution
                  of the respective instrument of amendment whereby the
                  contracting therefor is formalized.

                  1.7.3 After execution of this AMENDMENT, any and all Dedicated
                  Modems required by AOL from Embratel -- for localities where
                  AOL already has Dedicated Modems installed and active on the


                                       3
<PAGE>

                  date of execution of this AMENDMENT -- which result in a total
                  number of contracted for and activated Dedicated Modems that
                  exceeds [**], shall be subject to a term of validity of
                  thirty-six (36) months from the date of execution of the
                  respective instrument of AMENDMENT whereby the contracting
                  therefor is formalized.

                  1.7.4 After execution of this AMENDMENT, any and all Dedicated
                  Modems required by AOL from Embratel for localities where AOL
                  has no Dedicated Modem installed and active on the date of
                  execution of this AMENDMENT, or localities where the number of
                  Dedicated Modems has been reduced to [**] pursuant to this
                  AMENDMENT, shall be subject to a term of validity of
                  thirty-six (36) months from the date of execution of the
                  respective instrument of amendment whereby the contracting
                  therefor is formalized.

         1.8 Notwithstanding the terms established under Section 1.7 above, AOL,
         at its exclusive discretion, may terminate, in whole or in part, the
         Dedicated Modems contracted for, as established hereinbelow:

                  1.8.1 As of [**], AOL may terminate any individual contracting
                  for Dedicated Modems in the localities where AOL has Dedicated
                  Modems installed and active on the date of execution of this
                  AMENDMENT, pursuant to the following conditions:

                           a) Termination by AOL of the contracting for
                           Dedicated Modems -- in the localities where AOL
                           already has Dedicated Modems installed and active on
                           the date of execution of this AMENDMENT -- resulting
                           in a total number of remaining, contracted for and
                           activated, Dedicated Modems equal to or exceeding
                           [**] may be made, provided that AOL pays EMBRATEL a
                           penalty of a compensatory nature in an amount equal
                           to [**] of the total amount of any installments
                           payable by AOL to EMBRATEL with respect to each
                           Dedicated Modem the contracting for which has been
                           terminated.

                           b) Termination by AOL of the contracting for
                           Dedicated Modems -- in the localities where AOL
                           already has Dedicated Modems installed and active on
                           the date of execution of this AMENDMENT -- resulting
                           in a total number of remaining, contracted for and
                           activated, Dedicated Modems that is less than [**],
                           but exceeding [**], may be made at any time during
                           the term of validity of the Agreement, without
                           payment of any fine, tax or penalty by AOL.




                                       4
<PAGE>

                           c) [**], termination by AOL of the contracting for
                           Dedicated Modems -- in the localities where AOL has
                           Dedicated Modems installed and active on the date of
                           execution of this AMENDMENT -- resulting in a total
                           number of remaining, contracted for and activated,
                           Dedicated Modems that is less than [**], but
                           exceeding [**], may be made, provided that AOL pays
                           EMBRATEL a penalty of a compensatory nature in an
                           amount equal to [**] of the total amount of any
                           installments payable by AOL to EMBRATEL with respect
                           to each Dedicated Modem terminated. In the event
                           termination as provided under this letter "c" results
                           in a total number of remaining, contracted for and
                           activated, Dedicated Modems that is less than [**],
                           AOL will pay EMBRATEL a penalty of a compensatory
                           nature in an amount equal to [**] of the total amount
                           of any installments payable by AOL to EMBRATEL with
                           respect to each Dedicated Modem the contracting for
                           which has been terminated.

                           d) [**], termination by AOL of the contracting for
                           Dedicated Modems -- in the localities where AOL has
                           Dedicated Modems installed and active on the date of
                           execution of this AMENDMENT -- resulting in a total
                           number of remaining, contracted for and activated,
                           Dedicated Modems that is less than [**], but
                           exceeding [**], may be made, provided that AOL pays
                           EMBRATEL a penalty of a compensatory nature in an
                           amount equal to [**] of the total amount of any
                           installments payable by AOL to EMBRATEL with respect
                           to each Dedicated Modem the contracting for which has
                           been terminated. In the event termination as provided
                           under this letter "d" results in a total number of
                           remaining, contracted for and active, Dedicated
                           Modems that is less than [**], AOL will pay EMBRATEL
                           a penalty of a compensatory nature in an amount equal
                           to [**] of the total amount of any installments
                           payable by AOL to EMBRATEL with respect to each
                           Dedicated Modem the contracting for which has been
                           terminated.

                  1.8.2 AOL may individually terminate the contracting for any
                  Dedicated Modems installed in localities where AOL has [**]
                  Dedicated Modem installed and active up to the date of
                  execution of this AMENDMENT, or in localities where the number
                  of Dedicated Modems has been reduced to [**] pursuant to this
                  AMENDMENT. Any such termination will subject AOL to the
                  payment to EMBRATEL of a penalty of a compensatory nature in
                  an amount equal to [**] of the total amount of any
                  installments payable by AOL to EMBRATEL with respect to each
                  Dedicated Modem the contracting for which has been terminated.

         1.9 For the sake of clarity, the table below indicates the criterion
         for the imposition of penalties associated with the termination of



                                       5
<PAGE>

         Dedicated Modems contracted for and activated in the localities where
         AOL has Dedicated Modems installed and active on the date of execution
         of this AMENDMENT, as described in Section 1.8 above:

-------------------------------------------------------------------------------

Number of       [**]       [**]                 [**]        [**]        [**]
Dedicated
Modems (M)
-------------------------------------------------------------------------------
Date as of      [**]       [**]      [**]       [**]        [**]        [**]
which
termination is
permitted
-------------------------------------------------------------------------------
Percentage of   [**]       [**]      [**]       [**]        [**]        [**]
installments
payable on
account of
penalty
-------------------------------------------------------------------------------

         1.10 EMBRATEL warrants that it will provide a continued service, unless
         any restriction /impediment of a regulatory nature with respect to the
         type of service to be provided under the agreement, and the conditions
         for the provision thereof, shall prevent EMBRATEL from providing such
         service.

                  1.10.1 In the event ANATEL establishes final regulations for
                  governing "Material aspects concerning the use of
                  telecommunications services and networks for access to
                  Internet services", which were the subject matter of the
                  Notice for Public Comment (CONSULTA PUBLICA) No. 0372, and in
                  the event EMBRATEL proceeds to provide Internet dialed access
                  service (the subject matter of the AGREEMENT) under such new
                  modes /conditions as may be established by ANATEL, AOL, at its
                  exclusive discretion, may cause the Dedicated Modems then
                  installed and active to migrate to the new mode for the
                  provision of the service, according to new and specific
                  commercial conditions for the provision of such new service,
                  to be negotiated between the Parties upon the implementation
                  thereof, and AOL shall not be subject to any fine, penalty or
                  indemnification by reason of such change in the conditions for
                  the provision of the service.

         1.11 The Parties agree that, as of the execution of an appropriate
         agreement between AOL and EMBRATEL with respect to shared marketing
         investments, Section 10.5 of the AGREEMENT (as modified under the
         amendment 01/2000) will be deemed excluded from the AGREEMENT,
         whereupon all of the effects thereof shall cease.

SECTION TWO - GENERAL PROVISIONS

2.1      The Parties hereby ratify all other provisions under the Agreement and
         amendments thereto, which shall be maintained in their entirety to the
         extent they do not conflict with this AMENDMENT.

2.2      This AMENDMENT binds the Parties, by themselves, their successors,
         heirs and assigns on any account.

                                       6
<PAGE>

2.3      The contracting and cancellation/termination of the contracting for any
         Dedicated Modems, as well as any contractual modification, will only be
         valid if made by an instrument of amendment executed by the authorized
         representatives of both Parties. Nevertheless, a request for the
         transfer of Dedicated Modems, as provided under Section 1.2 (a) of he
         Agreement, may be made by written notice from AOL to Embratel, and such
         request will be deemed valid after being expressly accepted by
         EMBRATEL.

         2.3.1 Embratel shall respond to AOL whether Embratel accepts any such
         request not later than (i) [**], where a transfer shall be made to a
         locality where AOL already has Dedicated Modems; and (ii) [**], where a
         transfer shall be made to a locality where AOL does not have any
         Dedicated Modem yet.

         2.3.2 Absence of any response by Embratel within the time limits
         established herein shall be construed as an express acceptance of AOL's
         request by Embratel.

Intending to be legally bound the Parties execute this AMENDMENT in two (02)
counterparts, before the two (02) subscribing witnesses.

                                                    Rio de Janeiro, May 25, 2002

EMPRESA BRASILEIRA DE COMUNICACOES - EMBRATEL

/s/ VALDINEI CARNIEL ROCHA             /s/ MICHELE DARIANO MACHEMER
-------------------------------       -----------------------------------------
NAME: VALDINEI CARNIEL ROCHA          NAME: MICHELE DARIANO MACHEMER
TITLE: SALES MANAGER                  TITLE: ACCOUNT MANAGER

AOL BRASIL LTDA.

 /s/ MILTON DA ROCHAS CARMARGO
-------------------------------       -----------------------------------------
NAME: Milton da Rocha Camargo         NAME:
TITLE: Vice President                 TITLE:

WITNESSES:

/s/ JUSSARA COSTA RIET                /s/ LUCIANA DE FREITA PUPO NOGUERIA
-------------------------------       -----------------------------------------
NAME: JUSSARA COSTA RIET              NAME: Luciana de Freitas Pupo Nogueira

RG: 1,014,014,932



                                       7
<PAGE>


                   ANNEX I - DEDICATED MODEMS TO BE CANCELLED

------------------------------------- ------------ ----------------------------
Locality                                 State     Number of Dedicated Modems
                                                   cancelled
------------------------------------- ------------ ----------------------------
ANANINDEUA                                PA                    [**]
------------------------------------- ------------ ----------------------------
ANAPOLIS                                  GO                    [**]
------------------------------------- ------------ ----------------------------
APARECIDA DE GOIANIA                      GO                    [**]
------------------------------------- ------------ ----------------------------
ARACAJU                                   SE                    [**]
------------------------------------- ------------ ----------------------------
ARARAQUARA                                SP                    [**]
------------------------------------- ------------ ----------------------------
BELEM                                     PA                    [**]
------------------------------------- ------------ ----------------------------
BENTO GONCALVES                           RS                    [**]
------------------------------------- ------------ ----------------------------
BLUMENAU                                  SC                    [**]
------------------------------------- ------------ ----------------------------
BOA VISTA                                 RR                    [**]
------------------------------------- ------------ ----------------------------
BRASILIA                                  DF                    [**]
------------------------------------- ------------ ----------------------------
CACHOEIRO DO ITAPEMIRIM                   ES                    [**]
------------------------------------- ------------ ----------------------------
CAMACARI                                  BA                    [**]
------------------------------------- ------------ ----------------------------
CAMPINAS                                  SP                    [**]
------------------------------------- ------------ ----------------------------
CAMPO GRANDE                              MS                    [**]
------------------------------------- ------------ ----------------------------
CAXIAS DO SUL                             RS                    [**]
------------------------------------- ------------ ----------------------------
COLATINA                                  ES                    [**]
------------------------------------- ------------ ----------------------------
CONTAGEM                                  MG                    [**]
------------------------------------- ------------ ----------------------------
CORUMBA                                   MS                    [**]
------------------------------------- ------------ ----------------------------
CRICIUMA                                  SC                    [**]
------------------------------------- ------------ ----------------------------
CUIABA                                    MT                    [**]
------------------------------------- ------------ ----------------------------
CURITIBA                                  PR                    [**]
------------------------------------- ------------ ----------------------------
DIVINOPOLIS                               MG                    [**]
------------------------------------- ------------ ----------------------------
DOURADOS                                  MS                    [**]
------------------------------------- ------------ ----------------------------
FARROUPINHA                               RS                    [**]
------------------------------------- ------------ ----------------------------
FLORIANOPOLIS                             SC                    [**]
------------------------------------- ------------ ----------------------------
FORTALEZA                                 CE                    [**]
------------------------------------- ------------ ----------------------------
FOZ DO IGUACU                             PR                    [**]
------------------------------------- ------------ ----------------------------
GOIANIA                                   GO                    [**]
------------------------------------- ------------ ----------------------------
GURUPI                                    TO                    [**]
------------------------------------- ------------ ----------------------------
ILHEUS                                    BA                    [**]
------------------------------------- ------------ ----------------------------
IMPERATRIZ                                MA                    [**]
------------------------------------- ------------ ----------------------------
ITABUNA                                   BA                    [**]
------------------------------------- ------------ ----------------------------
ITAJAI                                    SC                    [**]
------------------------------------- ------------ ----------------------------
JI-PARANA                                 RO                    [**]
------------------------------------- ------------ ----------------------------
JOAO PESSOA                               PB                    [**]
------------------------------------- ------------ ----------------------------
JOINVILLE                                 SC                    [**]
------------------------------------- ------------ ----------------------------
JUAZEIRO DO NORTE                         CE                    [**]
------------------------------------- ------------ ----------------------------
LAGES                                     SC                    [**]
------------------------------------- ------------ ----------------------------
LONDRINA                                  PR                    [**]
------------------------------------- ------------ ----------------------------
MACEIO                                    AL                    [**]
------------------------------------- ------------ ----------------------------
MARILIA                                   SP                    [**]
------------------------------------- ------------ ----------------------------


                                       8
<PAGE>

------------------------------------- ------------ ----------------------------
MARINGA                                   PR                    [**]
------------------------------------- ------------ ----------------------------
NATAL                                     RN                    [**]
------------------------------------- ------------ ----------------------------
NOVO HAMBURGO                             RS                    [**]
------------------------------------- ------------ ----------------------------
OSASCO                                    SP                    [**]
------------------------------------- ------------ ----------------------------
PASSO FUNDO                               RS                    [**]
------------------------------------- ------------ ----------------------------
PELOTAS                                   RS                    [**]
------------------------------------- ------------ ----------------------------
PETROLINA                                 PE                    [**]
------------------------------------- ------------ ----------------------------
PETROPOLIS                                RJ                    [**]
------------------------------------- ------------ ----------------------------
PONTA GROSSA                              PR                    [**]
------------------------------------- ------------ ----------------------------
PORTO ALEGRE                              RS                    [**]
------------------------------------- ------------ ----------------------------
RECIFE                                    PE                    [**]
------------------------------------- ------------ ----------------------------
RIO BRANCO                                AC                    [**]
------------------------------------- ------------ ----------------------------
RIO VERDE                                 GO                    [**]
------------------------------------- ------------ ----------------------------
RONDONOPOLIS                              MT                    [**]
------------------------------------- ------------ ----------------------------
SANTA CRUZ DO SUL                         RS                    [**]
------------------------------------- ------------ ----------------------------
SANTA MARIA                               RS                    [**]
------------------------------------- ------------ ----------------------------
SANTAREM                                  PA                    [**]
------------------------------------- ------------ ----------------------------
SANTO ANDRE                               SP                    [**]
------------------------------------- ------------ ----------------------------
SANTO ANGELO                              RS                    [**]
------------------------------------- ------------ ----------------------------
SANTOS                                    SP                    [**]
------------------------------------- ------------ ----------------------------
SAO CARLOS                                SP                    [**]
------------------------------------- ------------ ----------------------------
SAO JOSE DO RIO PRETO                     SP                    [**]
------------------------------------- ------------ ----------------------------
SAO JOSE DOS CAMPOS                       SP                    [**]
------------------------------------- ------------ ----------------------------
SAO PAULO                                 SP                    [**]
------------------------------------- ------------ ----------------------------
SINOP                                     MT                    [**]
------------------------------------- ------------ ----------------------------
SOBRAL                                    CE                    [**]
------------------------------------- ------------ ----------------------------
SOROCABA                                  SP                    [**]
------------------------------------- ------------ ----------------------------
TERESINA                                  PI                    [**]
------------------------------------- ------------ ----------------------------
TOLEDO                                    PR                    [**]
------------------------------------- ------------ ----------------------------
TUBARAO                                   SC                    [**]
------------------------------------- ------------ ----------------------------
UBERABA                                   MG                    [**]
------------------------------------- ------------ ----------------------------
UBERLANDIA                                MG                    [**]
------------------------------------- ------------ ----------------------------
UMUARAMA                                  PR                    [**]
------------------------------------- ------------ ----------------------------
URUGUAIANA                                RS                    [**]
------------------------------------- ------------ ----------------------------
VARGINHA                                  MG                    [**]
------------------------------------- ------------ ----------------------------
VARZEA GRANDE                             MT                    [**]
------------------------------------- ------------ ----------------------------
VITORIA                                   ES                    [**]
------------------------------------- ------------ ----------------------------
VITORIA DA CONQUISTA                      BA                    [**]
------------------------------------- ------------ ----------------------------
TOTAL GERAL                                                     [**]
------------------------------------- ------------ ----------------------------

(*) Without prejudice to the cancellation of the contracting for Dedicated
Modems as agreed under Section 1.3.2 of the 11th Amendment, of which this Annex
is a part, the Dedicated Modems marked with an (*) may only be effectively
disconnected to the extent that the Dedicated Modems not yet installed by
Embratel, as referred to under Section 1.3.2 of such 11th Amendment, are
effectively installed.



                                       9
<PAGE>


                  ANNEX II - PORTS THAT SHALL REMAIN INSTALLED

----- ---------------------------- ------ ------------------------------
      LOCALITY                     ST                 PORTS
----- ---------------------------- ------ ------------------------------
   1  ANANINDEUA                   PA                 [**]
----- ---------------------------- ------ ------------------------------
   2  ANAPOLIS                     GO                 [**]
----- ---------------------------- ------ ------------------------------
   3  APARECIDA DE GOIANIA         GO                 [**]
----- ---------------------------- ------ ------------------------------
   4  APUCARANA                    PR                 [**]
----- ---------------------------- ------ ------------------------------
   5  ARACAJU                      SE                 [**]
----- ---------------------------- ------ ------------------------------
   6  ARACATUBA                    SP                 [**]
----- ---------------------------- ------ ------------------------------
   7  ARARAQUARA                   SP                 [**]
----- ---------------------------- ------ ------------------------------
   8  ARAUCARIA                    PR                 [**]
----- ---------------------------- ------ ------------------------------
   9  BALNEARIO CAMBORIU           SC                 [**]
----- ---------------------------- ------ ------------------------------
  10  BARRA MANSA                  RJ                 [**]
----- ---------------------------- ------ ------------------------------
  11  BARUERI                      SP                 [**]
----- ---------------------------- ------ ------------------------------
  12  BAURU                        SP                 [**]
----- ---------------------------- ------ ------------------------------
  13  BELEM                        PA                 [**]
----- ---------------------------- ------ ------------------------------
  14  BELO HORIZONTE               MG                 [**]
----- ---------------------------- ------ ------------------------------
  15  BENTO GONCALVES              RS                 [**]
----- ---------------------------- ------ ------------------------------
  16  BLUMEMAU                     SC                 [**]
----- ---------------------------- ------ ------------------------------
  17  BOA VISTA                    RR                 [**]
----- ---------------------------- ------ ------------------------------
  18  BRASILIA                     DF                 [**]
----- ---------------------------- ------ ------------------------------
  19  CACERES                      MT                 [**]
----- ---------------------------- ------ ------------------------------
  20  CACHOEIRO DO ITAPEMIRIM      ES                 [**]
----- ---------------------------- ------ ------------------------------
  21  CAMACARI                     BA                 [**]
----- ---------------------------- ------ ------------------------------
  22  CAMPINA GRANDE               PB                 [**]
----- ---------------------------- ------ ------------------------------
  23  CAMPINAS                     SP                 [**]
----- ---------------------------- ------ ------------------------------
  24  CAMPO GRANDE                 MS                 [**]
----- ---------------------------- ------ ------------------------------
  25  CAMPOS DOS GOYTACAZES        RJ                 [**]
----- ---------------------------- ------ ------------------------------
  26  CARUARU                      PE                 [**]
----- ---------------------------- ------ ------------------------------
  27  CASCAVEL                     PR                 [**]
----- ---------------------------- ------ ------------------------------
  28  CATANDUVA                    SP                 [**]
----- ---------------------------- ------ ------------------------------
  29  CAXIAS DO SUL                RS                 [**]
----- ---------------------------- ------ ------------------------------
  30  CHAPECO                      SC                 [**]
----- ---------------------------- ------ ------------------------------
  31  COLATINA                     ES                 [**]
----- ---------------------------- ------ ------------------------------
  32  CONTAGEM                     MG                 [**]
----- ---------------------------- ------ ------------------------------
  33  CORUMBA                      MS                 [**]
----- ---------------------------- ------ ------------------------------
  34  CRICIUMA                     SC                 [**]
----- ---------------------------- ------ ------------------------------
  35  CUIABA                       MT                 [**]
----- ---------------------------- ------ ------------------------------
  36  CURITIBA                     PR                 [**]
----- ---------------------------- ------ ------------------------------
  37  DIVINOPOLIS                  MG                 [**]
----- ---------------------------- ------ ------------------------------
  38  DOURADOS                     MS                 [**]
----- ---------------------------- ------ ------------------------------
  39  FARROUPINHA                  RS                 [**]
----- ---------------------------- ------ ------------------------------
  40  FEIRA DE SANTANA             BA                 [**]
----- ---------------------------- ------ ------------------------------
  41  FLORIANOPOLIS                SC                 [**]
----- ---------------------------- ------ ------------------------------
  42  FORTALEZA                    CE                 [**]
----- ---------------------------- ------ ------------------------------


                                       10
<PAGE>

----- ---------------------------- ------ ------------------------------
  43  FOZ DO IGUACU                PR                 [**]
----- ---------------------------- ------ ------------------------------
  44  GOIANIA                      GO                 [**]
----- ---------------------------- ------ ------------------------------
  45  GOVERNADOR VALADARES         MG                 [**]
----- ---------------------------- ------ ------------------------------
  46  GURUPI                       TO                 [**]
----- ---------------------------- ------ ------------------------------
  47  ILHEUS                       BA                 [**]
----- ---------------------------- ------ ------------------------------
  48  IMPERATRIZ                   MA                 [**]
----- ---------------------------- ------ ------------------------------
  49  ITABUNA                      BA                 [**]
----- ---------------------------- ------ ------------------------------
  50  ITAJAI                       SC                 [**]
----- ---------------------------- ------ ------------------------------
  51  JABOATAO DOS GUARARAPES      PE                 [**]
----- ---------------------------- ------ ------------------------------
  52  JEQUIE                       BA                 [**]
----- ---------------------------- ------ ------------------------------
  53  JI-PARANA                    RO                 [**]
----- ---------------------------- ------ ------------------------------
  54  JOAO PESSOA                  PB                 [**]
----- ---------------------------- ------ ------------------------------
  55  JOINVILLE                    SC                 [**]
----- ---------------------------- ------ ------------------------------
  56  JUAZEIRO DO NORTE            CE                 [**]
----- ---------------------------- ------ ------------------------------
  57  JUIZ DE FORA                 MG                 [**]
----- ---------------------------- ------ ------------------------------
  58  JUNDIAI                      SP                 [**]
----- ---------------------------- ------ ------------------------------
  59  LAGES                        SC                 [**]
----- ---------------------------- ------ ------------------------------
  60  LONDRINA                     PR                 [**]
----- ---------------------------- ------ ------------------------------
  61  LUZIANIA                     GO                 [**]
----- ---------------------------- ------ ------------------------------
  62  MACAPA                       AP                 [**]
----- ---------------------------- ------ ------------------------------
  63  MACEIO                       AL                 [**]
----- ---------------------------- ------ ------------------------------
  64  MANAUS                       AM                 [**]
----- ---------------------------- ------ ------------------------------
  65  MARILIA                      SP                 [**]
----- ---------------------------- ------ ------------------------------
  66  MARINGA                      PR                 [**]
----- ---------------------------- ------ ------------------------------
  67  MONTES CLAROS                MG                 [**]
----- ---------------------------- ------ ------------------------------
  68  MOSSORO                      RN                 [**]
----- ---------------------------- ------ ------------------------------
  69  NATAL                        RN                 [**]
----- ---------------------------- ------ ------------------------------
  70  NOVO HAMBURGO                RS                 [**]
----- ---------------------------- ------ ------------------------------
  71  OLINDA                       PE                 [**]
----- ---------------------------- ------ ------------------------------
  72  OSASCO                       SP                 [**]
----- ---------------------------- ------ ------------------------------
  73  PALMAS                       TO                 [**]
----- ---------------------------- ------ ------------------------------
  74  PARNAIBA                     PI                 [**]
----- ---------------------------- ------ ------------------------------
  75  PASSO FUNDO                  RS                 [**]
----- ---------------------------- ------ ------------------------------
  76  PAULISTA                     PE                 [**]
----- ---------------------------- ------ ------------------------------
  77  PELOTAS                      RS                 [**]
----- ---------------------------- ------ ------------------------------
  78  PETROLINA                    PE                 [**]
----- ---------------------------- ------ ------------------------------
  79  PETROPOLIS                   RJ                 [**]
----- ---------------------------- ------ ------------------------------
  80  PIRACICABA                   SP                 [**]
----- ---------------------------- ------ ------------------------------
  81  PONTA GROSSA                 PR                 [**]
----- ---------------------------- ------ ------------------------------
  82  PORTO ALEGRE                 RS                 [**]
----- ---------------------------- ------ ------------------------------
  83  PORTO VELHO                  RO                 [**]
----- ---------------------------- ------ ------------------------------
  84  PRESIDENTE PRUDENTE          SP                 [**]
----- ---------------------------- ------ ------------------------------
  85  RECIFE                       PE                 [**]
----- ---------------------------- ------ ------------------------------
  86  RESENDE                      RJ                 [**]
----- ---------------------------- ------ ------------------------------
  87  RIBEIRAO PRETO               SP                 [**]
----- ---------------------------- ------ ------------------------------


                                       11
<PAGE>

----- ---------------------------- ------ ------------------------------
  88  RIO BRANCO                   AC                 [**]
----- ---------------------------- ------ ------------------------------
  89  RIO DE JANEIRO               RJ                 [**]
----- ---------------------------- ------ ------------------------------
  90  RIO GRANDE                   RS                 [**]
----- ---------------------------- ------ ------------------------------
  91  RIO VERDE                    GO                 [**]
----- ---------------------------- ------ ------------------------------
  92  RONDONOPOLIS                 MT                 [**]
----- ---------------------------- ------ ------------------------------
  93  SALVADOR                     BA                 [**]
----- ---------------------------- ------ ------------------------------
  94  SANTA CRUZ DO SUL            RS                 [**]
----- ---------------------------- ------ ------------------------------
  95  SANTA MARIA                  RS                 [**]
----- ---------------------------- ------ ------------------------------
  96  SANTANA DO LIVRAMENTO        RS                 [**]
----- ---------------------------- ------ ------------------------------
  97  SANTAREM                     PA                 [**]
----- ---------------------------- ------ ------------------------------
  98  SANTO ANDRE                  SP                 [**]
----- ---------------------------- ------ ------------------------------
  99  SANTO ANGELO                 RS                 [**]
----- ---------------------------- ------ ------------------------------
 100  SANTOS                       SP                 [**]
----- ---------------------------- ------ ------------------------------
 101  SAO BERNARDO DO CAMPO        SP                 [**]
----- ---------------------------- ------ ------------------------------
 102  SAO CAETANO DO SUL           SP                 [**]
----- ---------------------------- ------ ------------------------------
 103  SAO CARLOS                   SP                 [**]
----- ---------------------------- ------ ------------------------------
 104  SAO JOSE DO RIO PRETO        SP                 [**]
----- ---------------------------- ------ ------------------------------
 105  SAO JOSE DOS CAMPOS          SP                 [**]
----- ---------------------------- ------ ------------------------------
 106  SAO JOSE DOS PINHAIS         PR                 [**]
----- ---------------------------- ------ ------------------------------
 107  SAO LEOPOLDO                 RS                 [**]
----- ---------------------------- ------ ------------------------------
 108  SAO LUIS                     MA                 [**]
----- ---------------------------- ------ ------------------------------
 109  SAO MATEUS                   ES                 [**]
----- ---------------------------- ------ ------------------------------
 110  SAO PAULO                    SP                 [**]
----- ---------------------------- ------ ------------------------------
 111  SINOP                        MT                 [**]
----- ---------------------------- ------ ------------------------------
 112  SOBRAL                       CE                 [**]
----- ---------------------------- ------ ------------------------------
 113  SOROCABA                     SP                 [**]
----- ---------------------------- ------ ------------------------------
 114  TERESINA                     PI                 [**]
----- ---------------------------- ------ ------------------------------
 115  TOLEDO                       PR                 [**]
----- ---------------------------- ------ ------------------------------
 116  TUBARAO                      SC                 [**]
----- ---------------------------- ------ ------------------------------
 117  UBERABA                      MG                 [**]
----- ---------------------------- ------ ------------------------------
 118  UBERLANDIA                   MG                 [**]
----- ---------------------------- ------ ------------------------------
 119  UMUARAMA                     PR                 [**]
----- ---------------------------- ------ ------------------------------
 120  URUGUAIANA                   RS                 [**]
----- ---------------------------- ------ ------------------------------
 121  VARGINHA                     MG                 [**]
----- ---------------------------- ------ ------------------------------
 122  VARZEA GRANDE                MT                 [**]
----- ---------------------------- ------ ------------------------------
 123  VITORIA                      ES                 [**]
----- ---------------------------- ------ ------------------------------
 124  VITORIA DA CONQUISTA         BA                 [**]
----- ---------------------------- ------ ------------------------------
 125  VOLTA REDONDA                RJ                 [**]
----- ---------------------------- ------ ------------------------------
      TOTAL GERAL                                     [**]
----- ---------------------------- ------ ------------------------------

(*) The number of Dedicated Modems marked with an (*) refer to Dedicated Modems
duly contracted for by AOL, but not yet installed by Embratel up to the date of
execution of the 11th Amendment, of which this Annex II is a part.




                                       12

</TEXT>
</DOCUMENT>
