TAM S.A. (TAM)

B. Related Party Transactions

     We believe that all of the relevant transactions we entered into with the related parties described below were performed on terms that reflected the market rate for such transactions.

B. Related Party Transactions

     We believe that all of the relevant transactions we entered into with the related parties described below were performed on terms that reflected the market rate for such transactions.

B. Related Party Transactions

     We believe that all of the relevant transactions we entered into with the related parties described below were performed on terms that reflected the market rate for such transactions.

11 Related party transactions

At September 30, 2007, TLA received from Táxi Aéreo Marília S.A. ("TAM Marília"), a company under common control, R$ 178 and R$ 730 for the three and nine months period ended September 2007 recorded as “cost of services rendered” (September 30, 2006 – R$ 402 and R$ 969), relating to services provided, such as the use of its importations area and aircraft insurance.

TLA and TAM Marília signed a contract the utilization of the hangar located by the Congonhas airport, for a period of 10 years. TLA paid to TAM Marília R$15,500 and may use the facilities and the infra-structure of the hangar, providing the same cargo services, as those previously provided in the old cargo terminal. The total amount was established based on valuation reports performed by independent companies, refleting the economic premium obtained by such a location in TLA cargo activities.

The Company and its subsidiaries signed a contract on March, 2005 with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. ("TAM Milor") for the right to use the "TAM" brand. This contract establishes a monthly fee, adjusted annually by IGPM, which totaled to R$ 3,602 and R$ 10,728 for the three and nine months period ended at September 30, 2007 (2006 – R$ 3,483 and R$ 10,434), respectivily recorded as “Administrative expenses”.

The operations performed between the companies were carried out under normal market conditions.

18

11 Related party transactions

20

During the first quarter of 2007, TLA received R$ 304 (March 31,2006 - R$ 289) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TAM.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed in march, 2005, contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract has the same term of the current Company’s passagers air transportation concession and establishes a monthly fee, adjusted annually by IGPM, which for the quarter ended March 31, 2007 totalled R$ 3,557 (March 31,2006 – R$ 3,467) and was recorded as “Administrative expenses”.

10 Related party transactions

18

For the year ended December, 31, 2006, TLA received R$ 1,244 (2005 - R$ 2,143) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TLA.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed in march, 2005, contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract has the same term of the current Company’s passagers air transportation concession and establishes a monthly fee, adjusted annually by IGPM, which for the year ended December, 31, 2006, totalled R$ 14,051 (2005 – R$ 11,559), recorded as “Administrative expenses”.

10 Related party transactions

21

During the third quarter of 2006, the subsidiary TLA received R$ 969 (09.30.2005 - R$ 1,572) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using a small part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TLA.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed a contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract establishes a monthly fee, which in the quarter ended September 30, 2006 totalled R$ 3,517 (09.30.2005 – R$ 4,254) and was recorded as “Administrative expenses”.

10 Related party transactions

21

During the first semester of 2006, the subsidiary TLA received R$ 568 (06.30.2005 - R$ 1,095) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using a small part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TLA.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed a contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract establishes a monthly fee, which in the quarter ended June 30, 2006 totalled R$ 3,549 ( 06.30.2005 – R$ 4,567) and was recorded as “Administrative expenses”.

10 Related party transactions

21

During the first semester of 2006, the subsidiary TLA received R$ 568 (06.30.2005 - R$ 1,095) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using a small part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TLA.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed a contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract establishes a monthly fee, which in the quarter ended June 30, 2006 totalled R$ 3,549 ( 06.30.2005 - R$ 4,567) and was recorded as “Administrative expenses”.

10 Related party transactions

19

In March 31, 2006, the subsidiary TLA received R$ 289 (12.31.2005 - R$ 2,143) from Táxi Aéreo Marília S.A. (“Marília”), as a reimbursement of costs for using a small part of its structure, such as the import area, personnel department and aircraft insurance. Marília has indirect shareholders common to TLA.

The operations performed between the companies were carried out under normal market conditions.

The Company and its subsidiaries signed a contract with TAM Milor Táxi Aéreo, Representações, Marcas e Patentes S.A. (“TAM Milor”) for the right to use the “TAM” brand. This contract establishes a monthly fee, which in the quarter ended March 31, 2006 totaled R$ 3,467 and was recorded as “Administrative expenses”.