|Transaction description||Distribution of the new premium bonds portfolio in Banco do Brasil’s bancassurance channel (“BB Channel”), as provided in agreements named “Specific Operational Agreements for Distribution of the Ourocap Monthly and Unique Payment Premium Bonds” (“Specific Agreements”).|
|Related parties names||Distribution of the new premium bonds portfolio in Banco do Brasil’s bancassurance channel (“BB Channel”), as provided in agreements named “Specific Operational Agreements for Distribution of the Ourocap Monthly and Unique Payment Premium Bonds” (“Specific Agreements”).|
|Relation between the parties and the Company||BB – Controlling shareholder|
BB Corretora – Controlled company
Brasilcap – Affiliated companies
|Contract object||To set the rights and duties of the parties related to the distribution of the Ourocap branded premium bonds for individuals which is developed by Brasilcap and sold by BB Corretora in BB Channel.|
|Terms and conditions of the agreement||The Specific Agreements are part of a major agreement named “General Operational Agreement for Distribution of Products and Provision of Services” (“Operational Agreement”), which was signed on July 14th, 1999, and establishes that Brasilcap must pay to BB Corretora a percentage of the premium bonds collection as a commission for selling the products in BB Channel.|
BB is responsible for receiving the premium bonds collection paid by the clients and then transfer it to Brasilcap, net of BB Corretora’s commission fee. For this banking service, BB is remunerated by Brasilcap through the payment of banking services fees.
The Specific Agreements will be in force from the date of their signature and will last as long as the duration of the premium bonds which are object of the agreement.
|Participation of the Counterparty or its Shareholders and Management during the Company’s decision process||The counterparty did not participate of BB Seguridade’s decision and did not act as its representative during the transaction negotiation.|
|Reasons for the Company to conduct the transaction with related and not with third parties.||The Company would not be able to conduct the transaction with a third party since the Operational Agreement provides exclusivity to BB Corretora to distribute the Ourocap branded premium bonds. |
|Description of measures and procedures adopted to assure the arm’s length format of the transaction||All the general conditions of the premium bonds portfolio and the Specific Agreements were analyzed and validated by BB Seguridade, BB Corretora and Brasilcap’s technical divisions and then approved by BB Seguridade’s Executive Board and Related Parties Transactions Commitee as provided in the Company’s Related Party Transactions Policy.|