Legal Due Diligence Report - BFRE - Brazilian Finance e Real Estate

It is expressly excluded from the purpose of the agreement services related to the
operation of the parking lot, the commercialization of stores and spaces of the common areas,
merchandising actions, overseeing of construction works, consulting in structured operations
and energy generation.
In consideration for the provision of such services, BPS shall pay monthly to Ancar IC
Administradora, until the 10 th day of the subsequent month, the amount of R$1,000.00
adjusted by the variation of the IGP-DI (Índice Geral de Preços – Disponibilidade Interna),
published by the Fundação Getúlio Vargas. 1
The original term of validity of this agreement expired on May 1, 2010. However,
although no amendment has been executed, since no new agreement has been entered into
and the services continue to be rendered, it is the understanding of the parties that it is still in
force for an undetermined period of time.
Under the Revenue Management Agreement, it is incumbent upon Ancar IC
Administradora, among other duties:
DOCS - 351174v1
(a) control and record keeping of revenues and expenses;
(b) hiring efficient software for the management of the Shopping;
(c) issuance of invoices and collection of the condominium expenses from the
tenants;
(d) implementation of the safety and cleaning programs;
(e) control the payment of taxes levied on the property; and
(f) conduct the judicial and extrajudicial litigation involving the Shopping, at BPS’
costs.
In consideration for the provision of such services, BPS shall pay monthly to Ancar IC
Administradora, until the 10 th day of the subsequent month, the amount of R$40,000, adjusted
by the variation of the IGP-DI. Additionally, BPS has to reimburse several costs of Ancar IC
Administradora related to the provision of the services. 2
The original term of validity of this agreement expired on May 1, 2010. However,
although no amendment has been executed, since no new agreement has been entered into
1 As Brookfield has informed us that BPS’s expenses derive only from the payment of its employees and tax
levied on its income, we have asked them if BPS effectively pays this fee, but we have not been provided
with an answer yet.
2 As Brookfield has informed us that BPS’s expenses derive only from the payment of its employees and tax
levied on its income, we have asked them if BPS effectively pays this fee, but we have not been provided
with an answer yet.
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