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<SEC-DOCUMENT>0001292814-10-003201.txt : 20101021
<SEC-HEADER>0001292814-10-003201.hdr.sgml : 20101021
<ACCEPTANCE-DATETIME>20101020181129
ACCESSION NUMBER:		0001292814-10-003201
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20101231
FILED AS OF DATE:		20101021
DATE AS OF CHANGE:		20101020

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATIONAL STEEL CO
		CENTRAL INDEX KEY:			0001049659
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14732
		FILM NUMBER:		101133615

	BUSINESS ADDRESS:	
		STREET 1:		RUA LAURO MULLER
		STREET 2:		116 36 ANDAR
		CITY:			RIO DE JANEIRO RJ BR
		STATE:			D5
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>sid20101020-6k2.htm
<DESCRIPTION>PROPOSAL TO BE SUBMITTED FOR DELIBERATION
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=5><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=3><B>Washington, D.C. 20549 </B></FONT></DIV>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=5><B>FORM 6-K </B></FONT></DIV>
<DIV><FONT size=1></FONT>&nbsp;</DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=3>Report of Foreign Private Issuer<BR>
Pursuant to Rule 13a-16 or 15d-16 of the</FONT></DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=3>Securities Exchange Act of 1934</FONT></DIV>
<DIV><FONT size=1></FONT>&nbsp;</DIV>
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<DIV><FONT face="Times New Roman" color=#000000 size=3><B>For the month of October, 2010</B></FONT></DIV>
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<FONT face="Times New Roman" color=#000000 size=3><B>Commission File Number 1-14732 </B></FONT></DIV>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=5><B>COMPANHIA SIDER&#218;RGICA NACIONAL </B></FONT></DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=2>(Exact name of registrant as specified in its charter) </FONT></DIV>
<DIV><FONT size=1></FONT>&nbsp;</DIV>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=5><B>National Steel Company </B></FONT></DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=2>(Translation of Registrant's name into English)</FONT></DIV>
<DIV><FONT size=1></FONT>&nbsp;</DIV>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=3><B>Av. Brigadeiro Faria Lima 3400, 20&#186; andar<BR>
S&#227;o Paulo, SP, Brazil<BR>
04538-132 </B></FONT></DIV>
<DIV align=center><FONT face="Times New Roman" color=#000000 size=2>(Address of principal executive office)</FONT></DIV>
<DIV><FONT size=1></FONT>&nbsp;</DIV>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=3>Indicate by check mark whether the registrant files or will file annual reports<BR>
under cover Form 20-F or Form 40-F.&nbsp;</FONT>
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Form 20-F ___X___ Form 40-F _______
<P>&nbsp;<FONT face="Times New Roman, Times, Serif" size=3>Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. </FONT>&nbsp;</P>
Yes _______ No ___X____
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</DIV>
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<P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 9pt" face="Times New Roman"></FONT>&nbsp;</P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: center"><FONT style="FONT-SIZE: 12pt" face="Times New Roman,serif" color=black><B><FONT lang=PT-BR face="Times New Roman">COMPANHIA SIDER&#218;RGICA NACIONAL</FONT></B></FONT></P>
<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: center"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman" color=black>Publicly-Held Company</FONT></P>
<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: center"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>Corporate Taxpayer&#146;s ID (CNPJ/MF): 33.042.730/0001-04</FONT></P>
<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: center"><FONT lang=PT-BR style="FONT-SIZE: 12pt" face="Times New Roman" color=black>Corporate Registry (NIRE): 3330001159-5</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: center"><FONT style="FONT-SIZE: 12pt" face="Times New Roman,serif" color=black><B><FONT lang=EN-US face="Times New Roman">PROPOSAL TO BE SUBMITTED FOR DELIBERATION AT THE EXTRAORDINARY SHAREHOLDERS&#146; MEETING ON NOVEMBER 1st, 2010</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: left" align=left><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black><B><FONT lang=EN-US style="FONT-SIZE: 9pt" face="Times New Roman"><FONT style="FONT-SIZE: 12pt">To the Shareholders of </FONT><BR>
<FONT style="FONT-SIZE: 12pt">Companhia Sider&#250;rgica Nacional</FONT></FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>The Management of Companhia Sider&#250;rgica Nacional submits the following proposals for your deliberation:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>1.</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>Cancellation of twenty-seven million, three hundred twenty-five thousand, five hundred thirty-five (27,325,535) shares currently held in treasury, without any reduction in the capital stock, in light of the partial release of 52,389,112 shares that, as informed in the explanatory notes to CSN&#146;s financial statements, had been pledged as part of the agreement between CSN and the Office of Attorney-General of the National Treasury of the State of Rio de Janeiro as guarantee for liabilities related to certain tax court claims. The remaining 25,063,577 shares under pledge will be duly held in treasury until th
e obtainment of their release.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>Once the proposed cancellation is approved, the Company&#146;s capital stock will consist of one billion, four hundred eighty-three million, thirty-three thousand, six hundred eighty-five (1,483,033,685)&nbsp; common shares.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-INDENT: 0in; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>2.</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>Amendment to article 5 of the Bylaws to reflect the proposed cancellation of shares, as follows:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black><B><FONT style="FONT-SIZE: 12pt">Art. 5 </FONT></B></FONT><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black>- The capital stock of the Company, fully subscribed and paid in, is R$1,680,947,363.71 (one billion, six hundred and eighty million, nine hundred and forty seven thousand, three hundred and sixty three reais and seventy one cents) divided into 1,510,359,220 (one billion, five hundred ten million, three hundred fifty-nine thousand, two hundred twenty) common and book-entry shares with no par value.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black>Sole Paragraph - Each common share shall entitle the holder to one vote in the resolutions of the General Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 10pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black><B><FONT style="FONT-SIZE: 12pt">Art. 5 -</FONT></B></FONT><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black> The capital stock of the Company, fully subscribed and paid in, is R$1,680,947,363.71 (one billion, six hundred and eighty million, nine hundred and forty seven thousand, three hundred and sixty three reais and seventy one cents) divided into one billion, four hundred eighty-three million, thirty-three thousand, six hundred eighty-five (</FONT><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=windowtext>1,483,033,685)</FONT> <FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black>common and book-entry shares with no par value.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman,serif" color=black>Sole Paragraph - Each common share shall entitle the holder to one vote in the resolutions of the General Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 0pt; TEXT-ALIGN: left" align=left><FONT lang=EN-US style="FONT-SIZE: 12pt; LINE-HEIGHT: 115%" face="Times New Roman" color=black>Chairman of the Board of Directors</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">COMPANHIA SIDER&#218;RGICA NACIONAL</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=PT-BR face="Times New Roman">Bylaws</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=PT-BR face="Times New Roman">Chapter I</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">NAME, OBJECT, HEADQUARTERS AND DURATION</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 1</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Companhia Sider&#250;rgica Nacional, incorporated on April 9, 1941, with its articles of incorporation filed with the Commercial Registry Department under No. 15910, on May 5, 1941, hereinafter referred as &#147;the Company&#148;, is a Brazilian private legal entity, organized as a publicly-held corporation, which shall henceforth be governed by these Bylaws and applicable legislation.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 2</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The purpose of the Company is to manufacture, transform and sell steel products and subproducts, including importing and exporting thereof, and to exploit any other similar activities that may, directly or indirectly, be related to the purposes of the Company, such as: mining, cement and carbon-chemical industries, metallic structure manufacture and assembly, construction, transportation, navigation and port activities.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph - &nbsp;&nbsp;&nbsp; By decision of the Board of Directors, the Company may open and close branches, agencies, offices and establishments of any kind, in Brazil or abroad.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 3</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Company has its legal domicile and head office in the city of Rio de Janeiro, State of Rio de Janeiro.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 4</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Company shall remain in existence for an indefinite term.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Chapter II</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">CAPITAL AND SHARES</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 5</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The capital stock of the Company, fully subscribed and paid in, is R$1,680,947,363.71 (one billion, six hundred and eighty million, nine hundred and forty seven thousand, three hundred and sixty three reais and seventy one cents) divided into 1,483,033,685 (one billion, four hundred eighty-three million, thirty-three thousand, six hundred eighty-five) </FONT><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><STRIKE><FONT lang=EN-US face="Times New Roman">1,510,359,220 (one billion, five hundred ten million, three hundred fifty-nine thousand, two hundred twenty)</FONT></STRIKE></FONT> <FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">common and book-entry shares with no par value.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph -&nbsp;&nbsp;&nbsp;&nbsp; Each common share shall entitle the holder to one vote in the resolutions of the General Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 6</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Unless otherwise decided by the General Meeting, dividends shall be paid within 60 (sixty) days as from the date they are declared and in any event during the same fiscal year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 7</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The capital stock of the Company may be increased to up 2,400,000,000 (two billion four hundred million), by decision of the Board of Directors.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The authorized capital stock may be reached, upon one or more share issues, at the discretion of the Board of Directors.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shareholders shall have preemptive rights in relation to the shares issued by means of authorized capital, in proportion to their holdings in the capital on the date of each issue.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 3 &#150;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors shall establish the issue price for the shares, based on provisions of law, when authorizing the issuance of new shares for partial or whole issue of the authorized capital.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 8</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The reimbursement value of the shares shall be the quotient of the division of the economic value of the Company, ascertained by appraisal in accordance with provisions of law, by the total number of shares issued by the Company, Treasury shares excluded.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">GENERAL MEETING</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 9</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The General Meeting shall ordinarily meet during the 4 (four) first months following the end of the fiscal year and further meet extraordinarily whenever necessary. The call and procedures for convening and resolution shall be governed by these Bylaws and by applicable law.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 113.4pt; TEXT-INDENT: -113.4pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The chairman shall appoint the secretary of the General Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Chapter IV</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">MANAGEMENT</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><U><FONT lang=EN-US face="Times New Roman">Section I</FONT></U></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Standard Rules</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 10</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The management of the Company shall be incumbent upon the Board of Directors and the Executive Committee, the latter composed of Executive Officers, each of whom shall be responsible for a specific and defined area of activity.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 11</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The General Meeting shall set the remuneration of the managers of the Company.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The remuneration shall comprise a fixed monthly amount, which are the fees, and for the executive officers may also include a variable amount to be paid yearly, calculated on the net income of the Company ascertained after formation of the reserves required by law, including for payment of Income Tax, and of the provision for compulsory dividends.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The General Meeting may allocate an aggregate amount for the managers' remuneration, comprising the fixed portion for all of them and the variable part for the executive officers, to be distributed in such case by the Board of Directors.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 12</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The resolutions of the Board of Directors and the Executive Committee shall be adopted by vote of the majority of their members present at the meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><U><FONT lang=EN-US face="Times New Roman">Section II</FONT></U></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">BOARD OF DIRECTORS</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 13</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> - The Board of Directors is composed of 7 (seven) to 11 (eleven) members, shareholders, elected by resolution of the General Meeting, with a term of office of 1 (one) year, reelection being allowed. One member shall be the Chairman and another the Vice-Chairman.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Chairman and Vice-Chairman of the Board of Directors shall be chosen by their peers, by majority vote, at the first meeting held after their investiture.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event the employees of the Company, whether or not joined in investment club or as co-owners, do not have a sufficient shareholding to guarantee membership on the Board of Directors, one position </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">on the Board shall be reserved for the person chosen by the employees and in such capacity indicated to the general meeting to be elected to fill said position.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 3 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Executive Officers shall be entitled to speak, when called to attend the Board of Directors meetings.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 14</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> - The Board of Directors shall meet, ordinarily, on the dates established in the yearly calendar approved by said Board in the last month of the immediately preceding year, and extraordinarily by call of the Chairman, the Vice-Chairman when in the office of chairman, or 5 (five) Board of Director members. The meeting shall be installed upon attendance by the majority of the members.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minutes of the meetings shall be drawn up in the proper book.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Board resolutions shall be passed by majority vote of those present at the meeting. In the event of a tie, the Chairman of the meeting shall have the casting vote, in addition to his own.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 3 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of impediment or absence in the Board of Director meetings, each member shall be substituted by another member formally indicated by the former, with exception to the Chairman of the Board of Directors, whose substitution shall be made in accordance with Article 19 of these Bylaws.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 4 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of a vacant position on the Board of Directors, the substitute one shall be appointed by the remaining members and shall serve until the first General Meeting.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 5 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the vacancy occurs in the position of Chairman, the Vice-Chairman shall assume as Board chairman and shall provide for a general meeting within 30 (thirty) days as from the vacancy, to fill the vacant position.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 6 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Board of Director member shall receive, at least 3 (three) working days in advance, the agenda of the meeting with supporting documents for the decisions to be discussed.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 7 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors shall have a General Secretary.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 15</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Members shall receive copies of the minutes of meetings of the Executive Committee and any special committees created by the Board of Directors hereunder.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 16</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Board of Directors may form special committees to assist it, with defined purposes and limited terms of activities, designating the members thereof. </FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 17</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> - In addition to the duties established by law, the Board of Directors shall be responsible:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">I &#150; to approve the general management policy and establish the general policy for the business of the Company, laying down the basic guidelines for executive action, including as regards production, sales, technology transfer, use of trademarks and patents, and financial and investment management, as well as and to ensure that they are strictly performed;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">II &#150; to call general meetings;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">III &#150; to elect and dismiss the members of the Executive Committee and assign their duties, appointing the Executive Officer in charge of investor relations, who shall have sole authority to receive service of process and to represent the Company in court;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">IV &#150; to elect the substitute to complete the replaced Executive Officer's term of office, in case of vacancy on the Executive Committee;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">V &#150; to examine the books and papers of the Company and request information regarding documents of interest to the Company and ongoing or already completed business or projects;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">VI - to comment on the management report, Executive Committee accounts and consolidated balance sheets, which shall be submitted to it for examination within 2 (two) months after the end of the fiscal year;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">VII - to comment on all matters required to be submitted to the general meeting;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">VIII - to approve the names of the persons to be appointed by the Company to the executive boards and boards of directors, advisory and decision-making councils and audit committees of commercial or civil companies controlled by or associated with the Company, and associations, foundations and other types of corporate groups in which the Company participates;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">IX - to examine the monthly results of operations of the Company;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">X - to establish the guidelines for the internal audit plan and to ratify it;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XI - to appoint and dismiss the independents auditors of the Company;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XII - to call the independent auditors to Board of Directors meeting in order to comment on the reports, Executive Committee accounts, balance sheet and other financial statements prepared by the Executive Committee;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XIII - to establish policies for taking up tax incentives;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XIV - to decide on transfer of the Company's funds to others, including employee associations, recreational assistance entities, pension funds, foundations and public corporations;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XV - to require inspections, audits or account-rendering in foundations and similar entities in which the Company participates;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XVI - to approve the annual and pluriannual budgets, expansion projects and investment programs, and to follow up on execution and performance thereof;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XVII - to establish criteria for the following acts by the Executive Officers, independently of prior authorization by the Board of Directors;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 195pt; TEXT-INDENT: -0.25in; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>a)</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>acquisition, disposal and encumbrance of any permanent asset;</FONT></P>
<P style="MARGIN: 6pt 0in 0pt 194.75pt; TEXT-INDENT: -17.85pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>b)</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>conduction of any legal business by the Company, including financing and loans, including companies directly or indirectly controlled by the Company;</FONT></P>
<P style="MARGIN: 6pt 0in 0pt 194.75pt; TEXT-INDENT: -17.85pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>c)</FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp; </FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>any type of guarantee or encumbrance of any asset not composing the Company&#146;s permanent assets, including to the benefit or on behalf of third parties, provided that these third parties are the Company&#146;s subsidiaries or associated entities;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XVIII - to approve the general management rules and administrative structure of the Company and resolve on the human resources policy, including salary;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XIX - to authorize the opening, transfer or closing of branches, agencies, offices and establishments of any other kind of the Company, in Brazil or abroad;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XX - to resolve on any acts involving transformation, consolidation, spin-off, merger or liquidation of companies in which the Company has corporate holding;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXI - to appoint and dismiss the person responsible for the internal audit, who shall be a legally qualified employee of the Company and report to the Chairman of the Board of Directors;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXII - to appoint and dismiss the general secretary of the Board of Directors and define his duties;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXIII - to require, for review and establishment of criteria, submission of the rules to be observed by the Executive Officers (Arts. 23 and 24) </FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">and employees, and any other matter of corporate interest beyond the exclusive scope of the General Meeting;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXIV - to lay down the guidelines for control of the Company's corporate performance;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXV - to authorize trading by the Company of its own shares;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXVI - to establish the terms for conversion, early redemption and other conditions for placement of convertible or other debentures when authorized by the General Meeting;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXVII - to decide on the issue by the Company of commercial papers and other financial instruments designed for primary or secondary distribution on capital markets;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXVIII- to decide on capital increases, within the limits of the authorized capital;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXIX - to form advisory assistance committees pursuant to Art. 16;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXX - to authorize the Company to participate in other companies and to decide on representation of the Company at their general meetings and meetings of partners and as to matters submitted to such general and other meetings;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXI - to decide on the formation of companies controlled by the Company;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXII - to establish the form of distribution of the compensation of the managers of the Company, if fixed on an aggregate amount by the General Meeting;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXIII - to bar the execution of any decisions made by the Executive Officers violating the provisions of these Bylaws;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXIV - to resolve any omissions and perform other legal duties and prerogatives that do not conflict with those established in these Bylaws or law; </FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXV &#150; elect and dismiss the members of the Audit Committee, set their remuneration, determine the Committee duties and approve the operational rules that it may come to establish for its functioning.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">XXXVI - resolve on any matters that go beyond the authority established for the Board of Executive Officers, as provided for in Article 17.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 18</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The chairman of the Board of Directors shall:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">I - call and preside over meetings of the Board of Directors;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">II - convene and preside over the General Meeting, appointing the secretary.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 19</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Vice-Chairman of the Board of Directors shall substitute the Chairman in his absence or temporary impediments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><U><FONT lang=EN-US face="Times New Roman">Section III</FONT></U></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">EXECUTIVE COMMITTEE </FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 20</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Company shall have an Executive Committee composed of 2 (two) to 9 (nine) Executive Officers, at the discretion of the Board of Directors, one of them to be the Chief Executive Officer and the others Executive Officers without specific title, each having an area of activity determined by the Board of Directors.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The term of office of the Executive Officers is of 2 (two) years, reelection being allowed.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of absence or temporary impediment of the Chief Executive Officer, the Board of Directors shall appoint a substitute Chief Executive Officer, investing him in office.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 3 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the position of Chief Executive Officer becomes vacant, the Board of Directors shall elect a substitute, who shall complete the term of office of the replaced Chief Executive Officer (Art. 17, IV).</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 4 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The other Executive Officers shall be substituted in the event of absence or temporary impediment by another Executive Officer, who shall be appointed by the Chief Executive Officer.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 5 -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a position of Executive Officer becomes vacant, the Chief Executive Officer shall appoint one of the other Executive Officers as a temporary substitute until a definitive replacement is elected by the Board of Directors for the remainder of the term of office (Art. 17, IV).</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 21</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> - With due regard for the guidelines and resolutions of the Board of Directors and General Meeting, the Executive Committee shall have authority to administer and manage the business of the Company, with powers to perform all acts and carry out all transactions related to the objects of the Company,&nbsp; with due regard for the provisions of Art. 17 hereof and other provisions provided for herein.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is incumbent upon the Executive Committee the appointment of an Executive Officer or attorney in fact with specific powers to represent the Company severally in certain acts.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Executive Officers shall perform their duties on a full-time basis.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 22</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Executive Committee shall meet ordinarily once a month and extraordinarily whenever called by the Chief Executive Officer or by two Executive Officers, being the quorum the majority of its members.</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Executive Committee shall decide always by majority vote of present members. In the event of a tie, the Executive Committee shall submit the matter to the Board of Directors for resolution.</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resolutions of the Executive Committee shall be recorded in minutes drawn up in the proper book and signed by all present members, being copies of all minutes sent to all members of the Board of Directors.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 23</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Chief Executive Officer shall:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">I - preside over meetings of the Executive Committee;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">II - carry out the executive direction of the Company, to that end coordinating and supervising the activities of the other Executive Officers, ensuring full observance of the resolutions and policies established by the Board of Directors and General Meeting;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">III - organize, coordinate and supervise the activities of the areas directly subordinate to him;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">IV - allocate special activities and duties to any of the Executive Officers independently of their normal ones, </FONT><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><I><FONT lang=EN-US face="Times New Roman">ad referendum</FONT></I></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> of the Board of Directors;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">V - keep the Board of Directors informed of the activities of the Company;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">VI - prepare, with the assistance of the other Executive Officers, and submit to the Board of Directors proposal to (i) define the duties of the other Executive Officers; and (ii) establish the criteria as to amounts or limit for expenditure for acts by each of the Executive Officers;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">VII - prepare the annual report and draw up the balance sheet, together with the other Executive Officers.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 24</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - It is incumbent upon each of the Executive Officers, within the specific sphere of activity allocated to them by the Board of Directors:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">I - to represent the Company in accordance with the law and these Bylaws;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">II - to organize, coordinate and supervise the services for which they are responsible;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">III - to attend Executive Committee meetings, assisting to define the policies to be followed by the Company and reporting on matters in their respective areas of supervision and coordination;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">IV - to comply and cause compliance with the policies and general guidelines for the business of the Company established by the Board of Directors, each Executive Officer being responsible for his specific area of activity.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 25</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - As a general rule, with the exception of the events under the paragraphs of this article, the Company is validly bound when represented by two Executive Officers or by one Executive Officer jointly with an Attorney in Fact or, further, by two Attorneys in Fact, within the limit of their respective powers of attorney.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The acts for which these Bylaws require prior authorization by the Board of Directors may only be performed after said condition has been met.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 2 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors shall define the amount above which the acts and instruments entailing liabilities for the Company shall necessarily be signed by an Executive Officer jointly with an Attorney in Fact with specific powers.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 3 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With the exception of the events provided for in articles 17, III, and 21, paragraph 1, the Company may also be represented by only one Executive Officer or one Attorney in Fact with specific powers in order to issue and negotiate, endorse and discount trade acceptance bills on the Company's sales; sign correspondence that does not create an obligation for the Company; perform simple routine administrative acts, including those in connection with government departments in general, autonomous government entities, government-owned companies, mixed-capital companies, the Commercial Registry, Labor Courts, National Social Security Institute, Unemployment Compensation Fund and its collection financial institutions and others of an identical nature.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 26</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The following rules shall be observed as regards the appointment of attorneys in fact:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">I - all powers of attorney shall be signed by two Executive Officers or by one Executive Officer jointly with an Attorney in Fact appointed by the Board of Directors;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">II - except in the event of judicial or similar representation, in which the performance of the powers until conclusion of the question or proceeding is essential, all powers of attorney shall be granted for a specific term of no more than one year, with limited powers.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 27</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Any acts performed without due regard for the rules established in Arts. 25 and 26 hereof shall be null and void, and shall not give rise to any liabilities for the Company.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Chapter V</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">FISCAL COMMITTEE</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 28</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Designed to function in the fiscal years in which it is constituted at the request of shareholders, the Fiscal Committee is composed of 3 (three) incumbent members and 3 (three) alternates elected by the General Meeting, which shall establish the compensation of the incumbent members.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph - &nbsp;&nbsp;&nbsp; The Fiscal Committee's term of office ends upon the first Annual General Meeting held after it has been constituted.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Chapter VI</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">AUDIT COMMITTEE</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 29</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> &#150; The Company will have an Audit Committee composed of three (3) members elected by the Board of Directors among its members, with term of office of one (1) year, reelection being allowed.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph &#150;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Board of Directors will approve the Internal Rules of the Committee, whereby its functions and duties, which shall comply with the laws and regulations applicable to audit committees, will be determined.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">FISCAL YEAR, BALANCE SHEETS AND PROFITS</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 30</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> - The fiscal year shall end on December 31 of each year, when the Financial Statements shall be drawn up after statement of the Board of Directors, they shall be submitted to the General Meeting, along with the proposal for allocation of net income for the year.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Paragraph 1 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The accumulated losses and provision for income and social contribution taxes will be deducted from the result of the year, prior to any participation.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>Paragraph 2 - &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The net income shall mandatorily have the following allocation:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>I &#150; five per cent (5%) shall be earmarked to the legal reserve fund until reaching twenty per cent (20%)&nbsp; of the subscribed capital stock;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; II &#150; payment of mandatory dividend (Article 33);</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 141.75pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">III &#150; the remaining profit shall have the allocation resolved at the General Meeting, observing the legal precepts.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art. 31</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; In addition, it shall be incumbent upon the Board of Directors:</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>I &#150; to determine the drawing up of half-yearly, quarterly balance sheets, or for shorter periods, observing the legal precepts;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>II &#150; to approve the payment of any additional, interim dividends, including as total or partial advance of mandatory dividend for the year in progress, observing the legal provisions;</FONT></P>
<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>III &#150; to declare dividends to the year&#146;s profit account verified in the half-yearly balance sheets, retained earnings or profit reserves existing in the last annual or half-yearly balance sheet;</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 141.6pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>IV &#150; pay interest on equity attributing the interest paid or credited to the mandatory dividend (Article 33), pursuant to Article 9, paragraph 7 of Law 9,249 of December 26,1995.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">Art</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black>. </FONT><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif color=black><B><FONT lang=EN-US face="Times New Roman">32</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman" color=black> &nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; The Board of Directors&#146; act to resolve on the advance payment of mandatory dividend shall provide if these payments will be offset, monetarily restated, with the mandatory dividend for the year and once provided this offset, the Annual General Meeting will determine the payment of mandatory balance, if any, as well as the reversal to the original account of amount paid in advance.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 33</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Dividend distribution shall not be less than 25% (twenty-five percent) of the ascertained net income, pursuant to art. 202 of Law 6404 of 1976.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 34</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - Dividends shall be paid on the dates and at the places indicated by the Executive Officer in charge of the Investor Relations area. If not claimed within 3 (three) years as from the beginning of the payment they shall become time-barred in favor of the Company.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Chapter VIII</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">LIQUIDATION</FONT></B></FONT></P>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: justify"><FONT style="FONT-SIZE: 12pt" face=Arial,sans-serif><B><FONT lang=EN-US face="Times New Roman">Art. 35</FONT></B></FONT><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman"> - The Company shall be liquidated in the events established by Law, with due regard for the applicable rules.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt 106.35pt; TEXT-INDENT: -106.35pt; TEXT-ALIGN: justify"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="Times New Roman">Sole Paragraph -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The General Meeting that approves the liquidation shall appoint the liquidator and the members of the Fiscal Committee that shall function during the liquidation period, establishing their respective fees.</FONT></P>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=3><B>SIGNATURE </B></FONT></DIV>
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<DIV style="TEXT-INDENT: 4%"><FONT face="Times New Roman" color=#000000 size=3>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></DIV>
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<DIV style="TEXT-INDENT: 4%"><FONT face="Times New Roman" color=#000000 size=3>Date:&nbsp;October 20, 2010</FONT></DIV>
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<DIV align=left><FONT face="Times New Roman" color=#000000 size=3>COMPANHIA SIDER&#218;RGICA NACIONAL </FONT></DIV></TD></TR>
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<DIV align=left><FONT face="Times New Roman" color=#000000 size=2>By:</FONT></DIV></TD>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=2>/<SMALL>S</SMALL>/&nbsp;Benjamin Steinbruch </FONT></DIV>
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<DIV align=left><FONT face="Times New Roman" color=#000000 size=2><B>Benjamin Steinbruch </B></FONT></DIV>
<DIV align=left><FONT face="Times New Roman" color=#000000 size=2><B>Chief Executive Officer <BR>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=2>/<SMALL>S</SMALL>/&nbsp;Paulo Penido Pinto Marques </FONT></DIV>
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<DIV align=left><FONT face="Times New Roman" color=#000000 size=2><B>Paulo Penido Pinto Marques </B></FONT></DIV>
<DIV align=left><FONT face="Times New Roman" color=#000000 size=2><B>Chief Financial Officer and Investor Relations Officer<BR>
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<DIV align=center><FONT face="Times New Roman" color=#000000 size=3><B>FORWARD-LOOKING STATEMENTS </B></FONT></DIV>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or 
results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. </FONT></P>
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