Document:

Exhibit 4.3
                                                                         - p. 1

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                             SHAREHOLDERS' AGREEMENT

ARAPAR S.A, with head offices at Av. Augusto Severo, 8 - 7o andar, parte, Rio de
Janeiro, RJ, registered in the National Register of Legal Persons - CNPJ-MF -
under No. 29.282.803/0001-68 ("ARAPAR") and LORENTZEN EMPREENDIMENTOS S.A., with
head offices at Av. Augusto Severo, 8 - 7o andar, parte, Rio de Janeiro, RJ,
registered in the National Register of Legal Persons - CNPJ-MF - under No.
33.107.533/0001-26 ("LORENTZEN"), hereby duly represented according to its
bylaws (together hereinafter referred to as "GRUPO LORENTZEN"); and

SODEPA SOCIEDADE DE EMPREENDIMENTOS, PUBLICIDADE E PARTICIPACOES S.A., with head
offices at Rua Amazonas 521, 5o andar, conjunto 52, Sao Caetano do Sul, State of
Sao Paulo, registered in the National Register of Legal Persons - CNPJ-MF -
under No. 43.826.833/0001-19, hereby duly represented according to its bylaws
("SAFRA");

GRUPO LORENTZEN and SAFRA shall be jointly referred to as "Shareholders" and
individually as "Shareholder".

WHEREAS:

(i) ARAPAR is the legitimate owner and regular holder of 127.494.497 (One
hundred and twenty-seven million,

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                                                                     Exhibit 4.3
                                                                         - p. 2

four hundred and ninety-four thousand, four hundred and ninety-seven) common
shares; all nominative, book-entry shares, without par value, issued by the
Company, representing 27.99673% of its voting capital;

(ii) LORENTZEN is the legitimate owner and regular holder of 11,960 (Eleven
thousand, nine hundred and sixty) common shares; all nominative book-entry
shares, without par value, issued by the Company, representing 0.00263% of its
voting capital.

(iii) SAFRA is the legitimate holder and regular owner of 127.506.457 (One
hundred and twenty-seven million, five hundred and six thousand, four hundred
and fifty-seven) common shares; all nominative, book-entry shares, without par
value, issued by the Company, representing 27.99935% of its voting capital.

(iv) on January 22, 1988, the Shareholders entered into a shareholders'
agreement, together with other shareholders of the Company, having as its main
purpose to govern the exercise of voting rights in the Company ("Original
Agreement");

(v) according to the terms of Clause 11 of the Original Agreement, the
signatories undertook not to enter into or acknowledge the validity of other
shareholders' agreements entered into by any of the Shareholders, whose purpose
was to govern the exercise of voting
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                                                                     Exhibit 4.3
                                                                         - p. 3

rights in the Company or which contradicted or restricted the effects of the
Original Agreement;

(vi) the parties of the Original Agreement, including the Shareholders, entered
into on June 30th, 1989, the "First Addendum of Rectification and Ratification"
of the Original Agreement, in which each of the signatories undertakes to limit
its participation in the voting capital of the Company as established in Clause
9 of the Original Agreement;

(vii) Clause 7 of the Original Agreement, which remains unchanged since the
execution of said instrument, establishes that the parties are free to "dispose,
burden or assign their shares with voting rights and/or respective subscription
rights, subject to the provisions of Clause 6";

(viii) although Clauses 15 and 16 of the Original Agreement provide that it
shall remain effective until May 11, 2008, the Shareholders at this moment
intend to establish certain other undertakings with respect to the exercise of
certain equity rights arising from their status as holders of common shares
issued by the Company;

(ix) the Shareholders understand that in order for the provisions herein which
contemplate rights of first refusal and tag-along rights in to be deemed
effective

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                                                                     Exhibit 4.3
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(as defined below) , it is necessary to establish restrictions as to the
disposal of Shares without the consent of the other Shareholder, until the free
exercise of the rights of first refusal herein established becomes possible,
upon termination of the restriction referred to in item "vi" above.

(x) as a result of the terms and conditions of the Original Agreement, as
amended, and always respecting the provisions of said instrument, some of the
other undertakings to be determined among the Shareholders may become
immediately effective, while others remain conditioned to the possible
termination or rescission of the Original Agreement or to the expiration of the
term of the Original Agreement, whereupon the conditional undertakings shall
become effective immediately (or previously, upon agreement of the parties).

The Shareholders decide to enter into this shareholders' agreement ("Agreement")
for the purposes and effects of Article 118 of Law No. 6.404 of December 15,
1976, according to the terms and conditions established below, freely covenanted
by the parties, which undertake to comply with them and ensure their compliance.

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                                                                     Exhibit 4.3
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1.1 Except if printed only in lower case, the expressions below, in the singular
or plural form, shall have the meaning granted to them below:

(a) "Shares" are (i) all common shares issued by the Company that are currently
held by the Shareholders, as well as (ii) any other common shares issued by the
Company which come to be held by any of the Shareholders for any reason,
including - but not limited to - purchase, subscription, stock splits,
distribution of bonuses and capitalization of profits or other reserves; (iii)
common shares issued by the Company subscribed in any capital increase; (iv) the
right to subscribe or acquire from the Company its common shares; and (v)
securities convertible into common shares issued by the Company (e.g.
subscription bonuses and convertible debentures) or securities which ensure such
right, as well as the right to subscribe or acquire from the Company such
securities.

(b) "Shareholder" or "Shareholders" shall have the meaning used in the preamble
of this Agreement;

(c) "Offered Shareholder" shall have the meaning found in letter (a) of item 4.2
below;

(d) "Offering Shareholder" shall have the meaning found in letter (a) of item
4.2 below;

(e) "Agreement" is this shareholders' agreement;

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                                                                     Exhibit 4.3
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(f) "Acquirer" shall have the meaning found in item 4.7.1 below;

(g) "Affiliate" is each and every natural person or legal entity, residing or
with head offices in Brazil or abroad, that (i) is, directly or indirectly, a
Controlled Company of any of the Shareholders; (ii) holds the Corporate Control,
directly or indirectly, of one of the Shareholders; or (iii) is, directly or
indirectly, a Controlled Company by any person who, directly or indirectly,
exercises the Corporate Control of one of the Shareholders;

(h) "Dispose" is the act of selling, assigning, placing under a Lien,
transferring, exchanging, loaning or in any other way disposing of the Shares,
including subscribing shares or quotas of other companies with Shares, whether
effectively or merely as a promise, including - but not limited to - any other
act which results in the transfer, disposal or burdening of Shares and
"Disposal" shall be understood as the effect of any such acts;

(i) "Preamble" are the provisions set forth in the preamble of this Agreement;

(j) "Company" is ARACRUZ CELULOSE S.A., a company with head offices in the City
of Aracruz, State of Espirito Santo, registered in the National Register of
Legal

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                                                                     Exhibit 4.3
                                                                         - p. 7

Persons under No. 42.157.511/0001-61.

(k) "Controlled Company" is any company currently under the Corporate Control of
another, pursuant to the terms of letter (m) below;

(l) "Controlling Company" means the natural person(s) or legal entity(ies) that
have the Corporate Control of the Shareholders;

(m) "Corporate Control" means the direct or indirect corporate interest, or
other right, whether arising from a contract, bylaw or another act, which
guarantees a majority of votes in the corporate resolutions and the power to
elect the majority of the directors and officers of the controlled entity;

(n) "Subscription Right" means each and every right of subscription or
acquisition of Shares granted by the Company to each of the Shareholders in
exchange for consideration or not;

(o) "Lien" is the generic name for any type of charge, burden or lien,
regardless of its name and/or nature, including - but not limited to - pledge,
collateral, usufruct and statutory liens;

(p) "IGP-M" is the General Index of Market Prices, published by Fundacao Getulio
Vargas;

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                                                                     Exhibit 4.3
                                                                         - p. 8

(q) "Corporations Law" is Law 6.404/76 with its respective amendments;

(r) "Current Percentage" is the percentage currently held by each of the
Shareholders, equivalent to approximately 28% (twenty eight percent) of the
Company's total voting capital.

(s) "Exercise Period" shall have the meaning found in letter (c) of item 4.2
below;

(t) "Stipulated Price" is the largest price between (i) the book value of
the Shares, as determined in the last audited balance sheet, monetarily
corrected according to the IGP-M variation or by an index that comes to replace
it, on the date of said balance sheet audited until the request date for the
lifting of the judicial measure mentioned in item 4.3 below; and (ii) the quoted
value of the Shares in the stock exchange, considering the weighted average of
the 20 (twenty) floor sessions prior to the date of the request for lifting of
the judicial measure mentioned in item 4.3 below, during which the
Share-------------------s were negotiated.

(u) "Tag-Along Right" shall have the meaning found in item 6.1 below;

                                   CLAUSE II
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                                                                     Exhibit 4.3
                                                                         - p. 9

                                    PURPOSE

2.1 The purpose of this Agreement is to determine certain reciprocal
undertakings with respect to the exercise of equity rights arising out of the
Shareholders' ownership of the Shares in the Company, subject to the provisions
of Clause XII below.

                                   CLAUSE III

                             NON-DISPOSAL OF SHARES

3.1 Each of the Shareholders acknowledges the following as fully being
compatible with the provisions of other instruments they entered into, which
object is their respective shareholding in the Company's corporate capital, and
each of the Shareholders hereby undertakes, for as long as the Original
Agreement is effective, not to Dispose in any way of its Shares without the
previous and express consent of the other Shareholder, which shall be granted at
its sole discretion, except exclusively in the cases permitted in items 4.7 and
5.2 below, nor permit - subject to the provisions of the Original Agreement -
that its interest in the Company's corporate capital, represented by Shares, be
reduced below the Current Percentage.

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                                                                     Exhibit 4.3
                                                                         - p. 10

3.1.1 If any of the Shareholders intends to Dispose of its Shares during the
effectiveness of the Original Agreement, such Shareholder shall inform the other
Shareholder by means of a notification containing all the information mentioned
in item 4.2 (a) below, where applicable, and the notified Shareholder shall
declare, within 30 (thirty) days, whether or not it agrees with the intended
Disposal, it being understood that no response shall represent its disagreement
with the Disposal.

3.2 Each one of the Shareholders undertakes not to commit any act or omission -
including but not limited to, the execution of any instrument which extends the
term of the Original Agreement - that would result directly or indirectly in the
renewal or extension, for any reason, of the term of the Original Agreement.

3.3 Each of the Shareholders undertakes, for so long as the Original Agreement
is in effect and during the effectiveness of this Agreement, not to permit that
its interest in the corporate capital of the Company represented by Shares be
reduced below the Current Percentage, subject the provisions of item 4.7.

                                    CLAUSE IV

                             RIGHT OF FIRST REFUSAL

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                                                                     Exhibit 4.3
                                                                         - p. 11

4.1 Subject to the provisions of Clause XII below with respect to the
effectiveness of the obligations contained in this Clause IV, each of the
Shareholders hereby undertakes not to Dispose, directly or indirectly of its
Shares, without previously granting the right of fist refusal to the other
Shareholder, as per Clause IV and item 5.3.

4.2  In order to secure the right of fist refusal established in this Agreement,
each Shareholder undertakes to comply with the following:

(a) the Shareholder who receives an offer from a third-party, in good faith, to
Dispose, directly or indirectly, of its Shares (hereinafter referred to as
"Offering Shareholder"), may only do so if said offer includes all of its Shares
and is a firm, unconditional and irrevocable offer, and the Offering Shareholder
must, for such, and before effecting such Disposal, notify the other Shareholder
(hereinafter referred to as

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                                                                     Exhibit 4.3
                                                                         - p. 12

"Offered Shareholder"), informing such other Shareholder (i) the number of
Shares it holds, which are the object of the Disposal, which shall always
represent the total number of Shares held by the Offering Shareholder
(hereinafter referred to as "Offered Shares"); (ii) the respective price, which
shall always be expressed in national currency for payment in cash and on
demand; (iii) the name of the third-party offeror; and (iv) all the other
conditions of the Disposal, shall attach to such notification a copy of the
third-party offer, which shall expressly include a declaration, under the
penalties of law, that there are no other amounts or advantages being offered,
paid - whether previously or subsequently to the declaration - or promised to be
paid, for any reason, or in connection with other transactions, for any reason
or in connection with the offer itself, directly or through the agency of
another party, to the Offering Shareholder and/or Affiliates, or by the Offering
Shareholder and/or Affiliates of the third-party offeror or any of its
affiliates;

(b) the Offered Shareholder may only exercise its right of fist
refusal to acquire the total number of Offered Shares;

(c) if the Offered Shareholder intends to exercise its right of fist refusal, it
shall notify the Offering Shareholder, which shall give notice to that effect to
the other Shareholder within 90 (ninety) days as of the date of the receipt of
the notification referred to in letter (a) of this item 4.2 (hereinafter
referred to as

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 13

"Exercise Period"), stating its unconditional and irrevocable commitment to
acquire all the Offered Shares under the same conditions as the offer made to
the Offering Shareholder;

(d) alternatively to the exercise of the right of fist refusal contemplated
above, the Offered Shareholder shall have the right (but not the obligation) to
determine that its Shares be included in the Disposal to the third-party
offeror, in which case the procedure established in Clause VI below shall apply;

(e) in the event the Offered Shareholder gives notice of its intention to
acquire the Offered Shares within the Exercise Period, the Shareholders shall
consummate the purchase transaction no later than 60 (sixty) days from the date
on which the Offering Shareholder received the notification contemplated in
letter (c) of this item 4.2.

(f) in the event the Offered Shareholder does not exercise its right of first
refusal within the Exercise Period, and, equally, does not exercise the
Tag-Along Right under Clause VI below, the Offering Shareholder shall have the
right to Dispose of the Offered Shares to third-parties, provided that such
Disposal: (i) is concluded no later than 60 (sixty) days as of the date of the
end of the Exercise Period; (ii) includes all

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                                                                     Exhibit 4.3
                                                                         - p. 14

and not less than all of the Offered Shares; (iii) is performed under the same
conditions to the same good faith third-party offeror and, at least, for the
same price, as specified in the notification contemplated in letter (a) of this
item 4.2; and (iv) establishes an obligation for the acquirer of the Shares to
become subject to the provisions of this Agreement, as per Clause VII below; and

(g) in the event the period of 60 (sixty) days contemplated in item (i) of
letter (f) of this item 4.2 elapses, not having occurred the Disposal of the
Offered Shares, the Offering Shareholder shall be responsible to restart the
offer procedure established in this item if it still intends to Dispose of its
Shares.

4.3 In the event the Shares held by any of the Shareholders become the
object of an attachment, seizure, pledge or any other judicial measure that
restricts the rights of the holder and such judicial measure on the Shares is
not lifted within 90 (ninety) days as of the date on which the judicial measure
became effective, the Shareholder holding the Shares restricted by the judicial
measure shall give notice of such judicial measure to the other Shareholder by
means of a notification and such notification shall be deemed

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                                                                     Exhibit 4.3
                                                                         - p. 15

for purposes of this Agreement as an offer to sell the Shares object of the
judicial measure to the other Shareholder. For purposes of this item, the
unequivocal knowledge of the judicial measure by the other Shareholder shall
also be considered as an offer to sell the Shares, object of such judicial
measure, regardless of the previously mentioned notification, and in such case,
the 91st (ninety first) day subsequent to the date on which the judicial measure
became effective, shall be considered the date of the offer to sell, provided
that the judicial measure has not yet been lifted from the Shares until such
date. In the event there is an offer to sell, according to the terms of this
item, the price of the Shares, object of the judicial measure shall be the
Stipulated Price and the Shareholder which accepts the offer may pay such price
in court in order to acquire such Shares. In the event there is any amount
remaining after the lifting of the judicial measure, such amount shall be paid
to the Shareholder which Shares were object of the judicial measure. However, if
the obligations secured by the judicial measure exceed the Stipulated Price, the
Shareholder which Shares were the object of the judicial measure shall be held
responsible before the other Shareholder for the difference in the amount,

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                                                                     Exhibit 4.3
                                                                         - p. 16

which the other Shareholder may have to deposit in order to acquire the Shares.
If the refund of such difference is not paid within 5 (five) days, the
Shareholder which Shares were the object of the judicial measure shall be
subject to judicial execution based on an extra-judicial title.

4.4 Each of the Shareholders hereby undertakes not to Dispose of its respective
Subscription Rights without the previous and express consent of the other
Shareholder, which may be granted at its sole discretion.

4.5 In the event of issuance of Company Shares, if a Shareholder has not
exercised its Subscription Rights until two business days before the respective
exercise period, and has not given notice to the other Shareholder, with a copy
to the Company, of its firm intention to do so, the other Shareholder may
automatically exercise such Subscription Rights with the Company, as an
assignee, including unsubscribed shares.

The provisions of this item do not exempt any of the Shareholders of complying
with the obligations assumed in item 3.3 above, and constitute an express
exception to the provisions of item 5.1 below.
<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 17

The Shares that perchance come to be acquired by one of the Shareholders by
exercising the Subscription Rights previously held by the other Shareholder,
according to the terms of this item 4.5 shall be made available to be acquired
by the original holder of those rights, which shall have, for this purpose a
call option on such Shares, for a period of 24 (twenty four) months, for a price
equal to the amount disbursed upon subscription of the Shares, object of the
call option, adjusted "pro-rata" with respect to the period elapsed, (i)
according to the IGP-M variation (or index that comes to replace it) plus
interest of 12% (twelve percent) per year or (ii) according to the rate
applicable to the arrears in the payment of taxes due to the National Treasury
(Fazenda Nacional) (currently the SELIC - Sistema Especial de Liquidacao e
Custodia - rate), whichever is the lowest.

4.6 If any of the Shareholders comes to effectively Dispose of its Shares to
third parties, as a result of the non-exercise of its right of first refusal
which the other Shareholder in entitled to, according to this Clause IV and to
item 5.3 below, such Shares shall remain bound to this Agreement, subject to
Clause VII

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                                                                     Exhibit 4.3
                                                                         - p. 18

below, during the term of this Agreement.

4.7 The obligation to secure the right of first refusal established in this
Clause IV above and the Tag-Along Right to which the Shareholders are entitled,
as per Clause VI below, as well as the prohibition contemplated in item 4.4
shall not apply:

(a) to the Disposal of 1 (one) Share by any of the Shareholders to members of
the Company's Board of Directors which the respective Shareholder has appointed;
or

(b) to the Disposal of Shares by any of the Shareholders to any of its
Affiliates.

4.7.1  Subject to the provisions of item 4.7.2 below, the Shares which may come
to be the object of Disposal by any of the Shareholders in the cases provided
for in letters (a) and (b) of item 4.7 above shall remain completely bound to
this Agreement, which, in the case of letter "b", shall bind the acquirer of the
respective Shares (hereinafter referred to as "Acquirer") by executing a
specific document, as provided by Clause VII below.

4.7.2  Previous execution by the respective Acquirer of a

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 19

document by which it adheres to this Agreement shall be a condition precedent to
the effectiveness of the respective Disposal of Shares in the case contemplated
in letter (b) of item 4.7 above, whereby the Acquirer shall irrevocably
undertake to unconditionally comply with all the terms and conditions of this
Agreement, especially in connection with the right of first refusal established
in this Clause IV, as well as the Tag-Along Right governed below; and in the
case of letter (a), the acquisition of the Share shall result in the irrevocable
commitment by the management of the Company and/or its successors to transfer
the Share to the Shareholder or to the person appointed by the Shareholder, when
he/she no longer holds the respective office.

4.7.3  If any of the Shareholders Disposes of its Shares according to the
provisions of letters (a) and (b) of this item 4.7 to more than one Acquirer,
all of the holders of the Shares thus acquired shall be treated jointly with the
disposing Shareholder as a single party for all purposes of this Agreement while
such Shareholder remains a holder of part of the Shares, in which case the term
"Shareholder", defined in letter (b) of item 1.1 above shall mean all the
Acquirers

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                                                                     Exhibit 4.3
                                                                         - p. 20

jointly (and, also the disposing Shareholder, if it remains a holder
of part of the Shares).

4.7.4 In the case of letter (b) of item 4.7 above, if the disposing Shareholder
no longer holds Shares in the Company's voting capital, the Acquirers shall give
notice to the other Shareholder, to be sent no later than 5 (five) days as of
the date on which the disposing Shareholder has ceased to hold Shares, stating
the name and address of the Acquirer which shall represent the other Acquirers
before the other Shareholder with respect to each and every aspect related to
this Agreement, including - but not limited to - summons and notifications, both
judicial and extra judicial, in any way related to the Acquirers' status as
shareholder of the Company.

4.8 Any Disposal of Shares which is inconsistent with the provisions of this
Clause IV and, any Lien which is granted inconsistently, with Clause V below,
shall not be deemed valid, and the management of the Company shall be prohibited
from posting the respective entries or from permitting that such entries be made
in the corresponding corporate books, under penalty of personal liability.

                                    CLAUSE V
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                                                                     Exhibit 4.3
                                                                         - p. 21

                      ADDITIONAL SHARES AND GRANTING LIENS

5.1 Notwithstanding the provisions of Clause IV above and the other provisions
of this Agreement, the Shareholders undertake not to acquire, directly or
indirectly, Shares that result in an increase of their respective shareholding
in the Company's corporate capital, represented by Shares in excess of the
Current Percentage, except if previous and express consent is given by the other
Shareholder at its sole discretion; the provisions of this item shall remain
valid even after the expiration of the term of the Original Agreement.

5.2 The Shareholders hereby undertake not to grant any Liens on their Shares,
except any in rem guarantee which does not result in the deprivation of any
political or subscription rights inherent to such Shares, nor subject such
rights, or their exercise, to restrictions or conditions, and such in rem
guaranteewas granted exclusively in order to obtain financing to subscribe
Shares in a capital increase approved by the other Shareholder, to fulfill the
obligation contemplated in items 3.1 and 3.3 above, subject to the provisions of
item 5.3 below.

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                                                                     Exhibit 4.3
                                                                         - p. 22

5.3 The instrument for the granting of the Lien contemplated in item 5.2 above
shall always (i) guarantee to the other Shareholder the right of first refusal,
which is applicable automatically in the event of judicial execution or extra
judicial sale of the encumbered asset, after the Original Agreement's term has
expired, under equal conditions of price and form of payment, as per Clause IV
above; and (ii) establish that the acquirer of the Shares, in the event of
judicial execution or extra judicial sale shall be subject to the provisions of
this Agreement. Under no circumstances may the Shareholder give or promise to
give all or part of the encumbered Shares as payment of the guaranteed debt.

                                    CLAUSE VI

                                 TAG-ALONG RIGHT

6.1 If the Offered Shareholder exercises its Tag-Along Right, pursuant to the
terms of letter (d) of item 4.2 above, the Offering Shareholder shall be
responsible to include in the Disposal contemplated in item 4.2 above, all of
the Shares of the Offered Shareholder, for the same price per share and in the
same conditions, together with the Offered Shares ("Tag-Along Right"). For this
purpose, the Offered Shareholder shall notify

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 23

in writing to the Offering Shareholder its intention to exercise its Tag-Along
Right contemplated in this item within 90 (ninety) days as of the date of
receipt of the notification referred to in item 4.2 (a) above.

6.2  In the event that the third-party offeror does not intend to acquire all of
the Shares held by the Offered Shareholder which, as a result of the Tag-Along
Right contemplated in this Clause, are added to the initially Offered Shares,
one of the following cases shall apply:

(a) if the Shareholders expressly so agree, the quantity of Shares to be
Disposed of to the third-party offeror shall be proportionately reduced, such
that the Shareholders Dispose of the same proportion of their respective
shareholding:

(b) if either of the Shareholders does not agree to proportionately reduce its
respective shareholding, the Offering Shareholder shall not be permitted to
effect said Disposal.

                                   CLAUSE VII

                           ADHERENCE TO THE AGREEMENT

7.1 Without prejudice to any other provisions in this Agreement, the previous,
complete and unrestricted assumption by the respective acquirer, in writing, of

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 24

the obligations of the disposing Shareholder undertaken in this Agreement shall
be a condition precedent to the Disposal contemplated in this Agreement.

7.2 The Disposals which are inconsistent with the provisions of this Clause VII
or of Clause V, as applicable, including the granting of any Liens on Shares,
are not valid.
                                   CLAUSE VIII

                     INVALIDITY AND INEFFECTIVENESS OF ACTS

                           CONTRARY TO THIS INSTRUMENT

8.1 Any and all Disposals of Shares, including the granting of a Lien, contrary
to the provisions of this Agreement, shall be legally invalid and ineffective
and will not produce effects with respect to the Company.

                                    CLAUSE IX

                    FILING AND REGISTRATION OF THE AGREEMENT

9.1 This Agreement and its possible amendments shall be filed at the head
offices of the Company, and the Company shall remain obligated to (i) comply
with its terms, as per article 118 of the Corporations Law and (ii) refrain from
committing any and all acts arising from the non compliance with the obligations
assumed herein.
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                                                                     Exhibit 4.3
                                                                         - p. 25

9.2 After the filing contemplated in item 9.1 above has been made, the proper
registration shall be made in the books of the financial institution which is
the depositary of the Shares, under the following terms:

"The Shareholder of these shares is a party to a Shareholders' Agreement,
effective as of February 5, 2003, which contains restrictions to the transfer,
disposal or burdening, in any way or for any reason, of these shares, and
regulates, among other matters, rights of fist refusal to the respective
acquisition and Tag-Along Rights. The Agreement is filed at the head offices of
the Company, for the purposes of Article 118 of Law No. 6.404/76".

                                    CLAUSE X

                                  NOTIFICATIONS

10.1 Any communication, notification and/or notice to be made in connection with
the provisions of this Agreement shall be made in writing and sent to the
addresses set forth below and shall be deemed as duly made (i) 48 (forty eight)
hours after being dispatched, if sent by express courier with confirmation of
receipt; (ii) 24 (twenty four) hours after fax transmission with express
confirmation of receipt; or

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 26

(iii) on the date set forth on the confirmation of delivery for registered mail:

(a) if to GRUPO LORENTZEN, to:

ARAPAR S.A.
At.: Mr. Haakon Lorentzen
Av. Augusto Severo, 8 - 7o andar, parte, Rio de Janeiro - RJ
Fax: (21) 2221-2673
or (21) 2221-4559

LORENTZEN EMPREENDIMENTOS S.A.
Av. Augusto Severo, 8 - 7o andar, parte, Rio de Janeiro, RJ. Fax: (21) 2221-2673
or (21) 2221-4559

(b) if to SAFRA, to:

SODEPA SOCIEDADE DE EMPREENDIMENTOS,
PUBLICIDADE E PARTICIPACOES S.A.
At.: Mr. Carlos Alberto Vieira
Praca Pio X No. 17, 14o andar, Centro, Rio de Janeiro, RJ -
Fax: (21) 2518-3226

with copy to:

Mr. Wagner Braz
Avenida Paulista No. 2.100, 20o andar, Sao Paulo, SP
Fax: (11) 3175-7628

and to:
<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 27

Mr. Isaac Selim Sutton
Avenida Paulista No. 2.100, 20o andar, Sao Paulo, SP
Fax: (11) 3175-8619

10.2 Any Shareholder may change the address in item 10.1 above, provided that it
notifies the other Shareholder, informing such change pursuant to the provisions
of this Clause X.

                                    CLAUSE XI

                                      TERM

11.1 In compliance with the provisions of Clause XII below, this Agreement will
come into effect upon its execution and will remain effective for a period of 16
(sixteen) years.

                                   CLAUSE XII

                        EFFECTIVENESS OF THE PROVISIONS OF THIS AGREEMENT

12.1 The provisions set forth in items 3.1 and 3.1.1 above shall no longer be
effective ipso jure, regardless of any formality upon termination of the
Original Agreement.

12.2 The provisions set forth in Clauses IV and VI above shall become effective
ipso jure, automatically and regardless of any other formality on the date on
which any of the following events occur: (i) the term

<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 28

of the Original Agreement expires; or (ii) of any event of early termination,
regardless of the reason or grounds, of the Original Agreement; subject to the
fact, however, that the prohibition contained in item 4.4 above as well as the
corresponding exception in item 4.7 above are immediately effective.

                                  CLAUSE XIII

                               SPECIFIC EXECUTION

13.1 The provisions of this Agreement shall be subject to specific execution,
according to the terms of Article 118, Paragraph 3 of the Corporations Law, and
the Shareholders acknowledge that this instrument represents an extra-judicial
title for all the purposes of Article 461, 462, 639 and following articles of
the Brazilian Code of Civil Procedure, and that the mere payment of damages
shall not be adequate compensation for possible breach of any of the provisions
set forth herein.

13.2 Notwithstanding the provisions of item 13.1 above, the Shareholders do not
waive, but rather expressly reserve the right to file any action or judicial
measure to which they may be entitled by operation of Law, undertaking expressly
to accept sanctions,
<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 29

judicial orders and other actions, which aim at prohibiting or preventing the
breach of this Agreement, including collection of damages that cannot be avoided
for the specific execution.

                                   CLAUSE XIV

                               GENERAL PROVISIONS

14.1 All the obligations established in this Agreement are undertaken by the
Shareholders irrevocably, binding each of the parties of this Agreement and any
successors, legal representatives and assignees.

14.2 Each of the Shareholders undertakes not to enter into, except with the
previous and express consent, granted by the other Shareholder at its sole
discretion: (i) a Shareholders Agreement of the Company; or (ii) any other
instrument that regulates the obligations established herein or that contradicts
or restricts the effects of this Agreement;

14.3 If any provision of this Agreement becomes void or ineffective, the
validity or effectiveness of the remaining provisions shall not be affected,
remaining in full force and effect and, in such case, the Shareholders shall
negotiate, in good faith, aiming to replace the ineffective provision by another
which, may
<PAGE>
                                                                     Exhibit 4.3
                                                                         - p. 30
reasonably and as far as possible, achieve the intended effect and
purpose.

14.4 In the event a Shareholder does not demand, at any moment, compliance with
any of the provisions of this Agreement or any of the rights related to this
instrument or does not exercise any of the rights provided herein such acts
shall not be considered a waiver of such provisions or rights and will not
constitute novation or in any way affect the validity of this Agreement.

14.5 This Agreement may not be transferred or assigned in whole or in part to
third parties, except in the events provided for in this instrument.

14.6 This Agreement may be amended only in writing, but the amendments shall
only be valid upon execution by the Shareholders.

14.7 This Agreement will be governed by Brazilian law, and the central courts of
the Judiciary District of the capital of Rio de Janeiro is hereby elected to
settle any controversies arising from the same.

IN WITNESS WHEREOF, the Shareholders execute this Agreement in 3 (three)
counterparts of equal content and form.

Rio de Janeiro, February 05, 2003

<PAGE>

                                                                     Exhibit 4.3
                                                                         - p. 31

                                     Signed:

                                   ARAPAR S.A.

                                     Signed:

                         LORENTZEN EMPREENDIMENTOS S.A.

                                     Signed:

                     SODEPA - SOCIEDADE DE EMPREENDIMENTOS,

                        PUBLICIDADE E PARTICIPACOES S.A.

WITNESSES:

1. (signature)
Name: Carlos Alberto Vieira
Taxpayer registration -CPF: Illegible

2. (signature)
Name: Luiz Aranha Correa do Lago
CPF: 375 703 317-53

I HEREBY DECLARE THAT THE FOREGOING IS A TRUE TRANSLATION OF THE ORIGINAL
MATTER WRITTEN IN PORTUGUESE.

RIO DE JANEIRO, APRIL 22, 2003EXHIBIT 4.02
                                   GERDAU S.A.
                         CNPJ/MF N(0) 33.611.500/0001-19
                              NIRE N(0) 33300032266
                            A PUBLICLY LISTED COMPANY

                  EXECUTIVE STOCK OPTION PLAN TO BE DENOMINATED
                THE `LONG-TERM INCENTIVE PROGRAM' - FOR APPROVAL
   BY THE EXTRAORDINARY SHAREHOLDER'S MEETINGS TO BE HELD ON APRIL 30, 2003.

                          1. OBJECTIVES OF THE PROGRAM
                             -------------------------

                  1.1. THE LONG-TERM INCENTIVE PROGRAM (hereafter the
"PROGRAM"), which grants call options for the purchase of shares of GERDAU S.A.
(hereafter, "GERDAU"), has the objectives of:

                  a - Attracting and retaining strategic executives;

                  b - Offering a long-term system of remuneration;

                  c - Sharing the growth and success of GERDAU and its directly
and indirectly controlled subsidiaries;

                  d - Strengthening the feeling of participation and
collaboration in the company's business.

                                2. ADMINISTRATION
                                   --------------

                  2.1. The administration of the PROGRAM shall be the
responsibility of the Compensation and Succession Committee (the "COMMITTEE").

                  2.2. The COMMITTEE shall have full authority power regarding
the organization, execution and administration of the PROGRAM, in accordance
with the terms and basic conditions of this plan, the directives of the Board of
Directors of GERDAU and legislation.

                  2.3. The COMMITTEE's powers shall include the right to
establish the rules relating to the granting of stock options on a year-to-year
basis.

                  2.4. The COMMITTEE shall be responsible for the indication of
individuals who fulfill the requirements and are in the position to be selected
as participants of the PROGRAM, who will be receiving call options to purchase
shares, as well as the relevant number of shares forming the object of the
options within the time limits established herein.

                  2.5. In exercising its attributions and its authority with
regards to the PROGRAM, the COMMITTEE shall be subject only to the limits
established in item 2.2 above, not being obliged by analogy or rule of isonomy
to extend to other directors, officers or employees in similar situations and
conditions it understands are applicable only to one or more specific
beneficiaries.

                                 3. ELIGIBILITY
                                    -----------

                  3.1. Individuals eligible for the PROGRAM shall include
directors, executive officers and high-level employees of GERDAU and its
directly or indirectly controlled subsidiaries (which are included in the
concept of the Company for the purposes of this plan). The selection of
directors, executive officers and employees (hereafter, "EXECUTIVE" or
"EXECUTIVES") that may be entitled to stock options shall be made exclusively by
the COMMITTEE.

<PAGE>
                            4. ENTRY TO THE PROGRAM
                               --------------------

                  4.1. Admission to the PROGRAM by eligible EXECUTIVES, as
defined in the preceding item, shall, in general, take place during the month of
December of each year unless, exceptionally, the COMMITTEE decides otherwise.

                  4.2. The COMMITTEE shall establish, in each case, the periods
and conditions for the right to exercise call options on the basis of the terms
stated in the "Option Contract for the Purchase of Shares under the terms of the
Long-Term Incentive Program for Executives of Gerdau" (The "OPTION CONTRACT"),
to be signed by the EXECUTIVE, in which the following points shall be defined:

                  a) the number of shares object of each option and the purchase
price per share;

                  b) the periods and conditions for the exercise of the call
options;

                  c) other terms and conditions that the COMMITTEE considers to
be relevant that have not been specified herein.

                  4.3. The contracts to which this item refers shall be executed
under the specification hereby determined and in accordance with the terms of
Art. 118 of Law No. 6,404/76 and shall be recorded in the Company's registers.

                        5. SHARES INCLUDED IN THE PROGRAM
                           ------------------------------

                  5.1. The granting of call options shall only apply to GERDAU
preferred shares, in an amount equivalent to 20% (twenty per cent) per year of
the basic annual salary of each of the EXECUTIVES selected to take part in the
PROGRAM. For this program, the basic annual salary of these EXECUTIVES shall be
defined as equal to 13 (thirteen) times the monthly salary paid by the company
in the month of December. In the case of directors, the strike price of the call
options may be equivalent to up to 100% (one hundred per cent) of their annual
compensation paid by the Company. The underlying shares of the option shall be
valued at the average market price on the date of the granting of the option.

                 6. ACQUISITION OF THE RIGHT TO EXERCISE OPTIONS
                    --------------------------------------------

                  6.1. As a general rule that may be altered by the COMMITTEE,
in each case, the acquisition of the right to exercise options shall take the
following form and refer to the following periods:

                  a) After 5 (five) years elapsed from the first day of the
month following the date of granting of the call options, the EXECUTIVE may
exercise his call options. To this end, he/she shall pay, in accordance with the
terms of Item 5.1, a price per share equivalent to the average market price of
the same shares on the date of the granting of the option.

                  b) The exercise of the call option must happen within a
maximum period of 5 (five) years, after which the EXECUTIVE shall no longer be
entitled to the right to this specific tranche of the option.

                  c) In the event that GERDAU issues stock bonus during the
period until the effective exercise of the right to buy, the number of shares
relating to the right of exercise of the options shall be increased in
proportion to the stock bonus issues, diluting the price of exercise of the
option in the same proportion.

                  d) During the year of admission of any executive officer to
the PROGRAM, GERDAU shall award additional call options, corresponding to 30%
(thirty per cent) of the annual salary the same executive officer paid by the
Company; the same option may be exercised three years after the date of
granting. The exercise of the additional options detailed herein may take place
no later than the 10th (tenth) year after the year of inclusion.

                  e) During this first year of the PROGRAM, call options on
company's shares shall be granted in the month of April, with the starting date
for the grace period set retroactively at January 1, 2003.

                                      2
<PAGE>
                            7. EXERCISE OF THE OPTION
                               ----------------------

                  7.1. The Option may be exercised by the EXECUTIVE in full or
in part, in accordance with the terms of Item 7.2. below.

                  7.2. In the event of the partial exercise of the option, the
exercising EXECUTIVE may exercise the remaining portion of his/her rights within
the period and in accordance with the conditions specified in the OPTION
CONTRACT.

                            8. CONDITIONS OF PAYMENT
                               ---------------------

                  8.1. The price of the acquired shares shall be immediately
due, in Brazilian national currency, unless the COMMITTEE establishes provisions
to the contrary, as specified in the OPTION CONTRACT.

                                    9. TAXES
                                       -----

                  9.1. Operations to be effected as part of the PROGRAM shall be
subject to taxation in the form established in the law.

                          10. EXPIRATION OF THE OPTION
                              ------------------------

                  10.1. The option shall be considered to have expired for all
intents and purposes:

                  a) as a result of its exercise in full, as established in this
PROGRAM;

                  b) as a result of the expiration of the exercise period;

                  c) as a result of the EXECUTIVE's departure from the Company.

                  10.2. In the event of the involuntary departure of the
EXECUTIVE from the Company:

                  a) when the EXECUTIVE is dismissed by decision of the Company
with no due cause, the EXECUTIVE that has already acquired the right to exercise
as a result of the ending of the grace period, shall retain this right of
exercise for the contractual period;

                  b) when the EXECUTIVE is dismissed with due cause, the
EXECUTIVE shall lose the right to receive any amount relating to the PROGRAM,
regardless of whether the grace period has ended or not.

                         11. RETIREMENT OF THE EXECUTIVE
                             ---------------------------

                  11.1. In the event of retirement of the EXECUTIVE, as part of
the Company's retirement plan, the same EXECUTIVE shall be granted the right to
exercise the call options attributed to him/her immediately after the end of
his/her work contract.

                          12. DECEASE OF THE EXECUTIVE
                              ------------------------

                  12.1. In the event of the decease of the EXECUTIVE, his/her
heirs/heiresses shall immediately be granted the right to exercise the call
options assigned to the deceased individual, which must be exercised within 2
(two) years of the date of passing away. In the event of option rights the grace
period for which has already ended in full on a date prior to his/her death, the
corresponding period for the exercise of the options shall be maintained.

                                      3
<PAGE>
                             13.  PERIOD OF VALIDITY
                                  -------------------

                  13.1. The PROGRAM shall take effect after it is approved by
Gerdau's General Shareholder's Meeting, becoming retroactive to January 1, 2003.
It may be terminated at any time by decision of the Board of Directors, albeit
honoring the OPTION CONTRACTS that have already been signed.

                  14. ALTERATIONS OR TERMINATION OF THE PROGRAM
                      -----------------------------------------

                  14.1. By decision of the Board of Directors, alterations may
be made to the PROGRAM, in the event that the gains proposed under the
Compensation Policy diverge significantly from the objective established for
Direct Remuneration.

                  14.2. In the event that it is necessary to implement changes
or to terminate the PROGRAM, such events shall be announced to the EXECUTIVES in
writing with at least 30 (thirty) days' prior notice, as of the date of
modification or termination.

                  14.3. The modifications to or termination of the PROGRAM shall
not affect OPTION CONTRACTS that have already been signed.

                  14.4. In the event of modifications to or the termination of
the PROGRAM:

                  a) GERDAU shall not be under any obligation to reestablish the
PROGRAM or compensate the EXECUTIVES for expected future gains or losses;

                  b) in the event that the PROGRAM is modified, any subsequent
profit opportunity may be implemented in accordance with terms that differ from
those previously established.

                             15. GENERAL CONDITIONS
                                 ------------------

                  15.1. In the event of a change in control of GERDAU, options
attributed to EXECUTIVES more than 12 months prior to the event shall be
considered as free for exercise, regardless of whether their respective grace
period has ended.

                  15.2. Whenever the EXECUTIVE decides to sell shares of his/her
property, the Company shall have priority in buying these shares at the market
price of the day of the operation. When the EXECUTIVE decides to divest his/her
shares, he/she must give 2 (two) business days prior notice to GERDAU, the
Company having a preferential right to purchase these shares until the
immediately preceding business day, with the Company undertaking to pay the
EXECUTIVE the purchase price within 2 (two) business days of the date of
exercise of its preferential right.

                  15.3. EXECUTIVES who are beneficiaries of the PROGRAM shall be
subject to restrictive rules on the use of privileged information applying to
publicly listed companies in general, as well as to rules for the trading of
securities of publicly listed companies within the special segment of the Sao
Paulo Stock Exchange ("BOVESPA") that apply to GERDAU.

                  15.4. In the event of the granting and subsequent exercise of
the call options object of this PROGRAM, shareholders shall not enjoy preference
rights in accordance with the terms of Art. 171, ss.3 of Law 6,404/76.

                                      4
<PAGE>

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