Article 28 – The fiscal year shall end December 31 of each year.

Article 29 – At the end of each fiscal year, the executive board shall prepare the Balance Sheet and the other financial statements required by law.

Article 30 – From the profits ascertained in each year, accumulated losses and a provision for income tax shall be deducted prior to any other distribution.

Article 31 – Together with the financial statements of the year, the Executive Board shall present to the General Meeting, for approval, the proposal on allocation of net income of the year after the following deductions or increases, made in the following decreasing order:

(a) five percent (5%) to institute a legal reserve which will not exceed twenty percent (20%) of the capital stock. The constitution of such Legal Reserve may be dismissed in the year in which balance of such Legal Reserve, plus the amount of capital reserves, exceeds Capital Stock by thirty percent (30%);

(b) amount allocated to constitute Reserves for Contingencies and reversal of reserves constituted in previous years;

(c) Profit to be Performed and Profit Reversal previously registered in this reserve that have been used during the year;

(d) 25% (twenty five percent) for payment of minimum mandatory dividends; and

(e) the remaining portion of adjusted net income after the payment of minimum mandatory dividends will be allocated to the Reserve for Investment and Expansion, the purpose of which is (i) to assure existence of funds to invest in permanent assets, without prejudice to profit retention pursuant to article 196 of the Brazilian Corporate Law; and (ii) to reinforce working capital; as well as it may (iii) be used for transactions of redemption, reimbursement or acquisition of shares from the capital stock of the Company, and the General Meeting may dismiss it in the event of payment of additional dividends to minimum mandatory dividends.

Article 32 – The Company, as resolved by the Board of Directors, may prepare a six-month period balance sheet and declare dividends to the account of profits ascertained therein. The Company may draw up balance sheets and distribute dividends, for shorter periods, as long as the total dividends paid out every half fiscal year do not exceed the Company’s total capital reserves. The Board of Directors may declare interim dividends using accumulated profits or the profit reserves held over from previous annual or half-yearly balance sheets.

Sole Paragraph – Upon approval from the Board of Directors, ad referendum from the Annual General Meeting, the Company may pay or credit interests to the shareholders, as payment of own capital thereof, subject to applicable laws. Any amounts so paid or credited may be offset against the mandatory dividends provided in these Bylaws

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