For the year ended December 31, 2000, the aggregate amount of compensation paid by our subsidiaries to all directors and executive officers of our subsidiaries as a group was approximately R$3.5 million.

At the Extraordinary General Meeting of Shareholders held on December 17, 1998, we approved the creation of a stock option plan under which our directors, executive officers and other management employees of Embratel may be granted options to purchase shares of Embratel. Our board of directors provided the details of the stock option plan at a meeting held on the same date.

The total number of shares under the stock option plan shall not exceed 10% of the total number of outstanding shares of Embratel (in accordance with the authorized capital limits). The stock option plan will initially involve only preferred shares. The price will be the closing market price at the date the option is granted, known as the option date. The maximum term for exercise of the rights under the stock option plan is ten years from the option date, and for each option the beneficiary will be vested with powers to exercise it in regard to up to 33% of the shares after the first year as the option date, 66% after the second year as from the option date, and 100% after the third year as from the option date. A committee was established and granted powers to define who will be granted the options, and how many shares. Dílio Sérgio Penedo and Daniel E. Crawford serve on to the committee.

In 2000, 902 employees were granted options to purchase Embratel's shares under the stock option plan, in the total amount of 2,048,265 thousand shares, for the total price of R$64,269 million, with the average price per thousand shares of R$31.38.