Material Fact - Global Settlement

CNPJ No. 42.150.391/0001-70
NIRE 29.300.006.939
A Publicly-Held Company


Braskem S.A. ("Company"), in compliance with CVM Ruling nº 358/02, informs its shareholders and the market that, on this date, it concluded the last stage of the global settlement negotiations mentioned in the Material Fact of December 14, 2016, with the finalization of formal agreements with the US Department of Justice ("DoJ") and the US Securities and Exchange Commission ("SEC") and the closure of Switzerland's investigation by the Office of the Attorney General pursuant to written order. The Company previously announced the Leniency Agreement entered into with Brazil's Federal Prosecutors Office ("MPF").

As described in the Material Fact of December 14, 2016, under the global settlement, the Company will pay to the competent authorities, in Brazil and abroad, the total amount of approximately US$ 957 million, equivalent to approximately R$ 3,1 billion. Out of this total amount, approximately R$ 1,6 billion will be paid up front, after the ratification of the agreements by the respective competent courts, being approximately US$ 95 million to the DoJ, US$ 65 million to the SEC, CHF 95 million to Switzerland's Office of the Attorney General and R$ 736 million to MPF. The balance of approximately R$ 1,5 billion will be paid in six annual installments adjusted by the IPCA variation to the MPF in accordance with the Brazilian Leniency Agreement.  The amounts paid to the MPF will be directed to third party indemnification.

Under the terms of the agreements, the Company will continue to cooperate with the competent authorities and improve its governance and anti-corruption compliance practices. The Company will also be subject to external monitorship for an estimated period of 3 years.

São Paulo, December 21, 2016.


Pedro van Langendonck Teixeira de Freitas
Finance and Investors' Relations Officer
Braskem S.A.