Document:

Supplemental Consent Decree with Defendant AVX Corporation containing agreement

 

 
 UNITED STATES DISTRICT COURT 

DISTRICT OF MASSACHUSETTS 
 ) UNITED STATES OF AMERICA, ) Plaintiff, ) ) v. ) ) 

AVX CORPORATION, et al., ) CIVIL ACTION NO. 83-3882-Y Defendants. ) 

) COMMONWEALTH OF MASSACHUSETTS, ) Plaintiff, ) ) v. ) ) AVX CORPORATION, et al., ) Defendants. ) ) 

SUPPLEMENTAL CONSENT DECREE WITH DEFENDANT AVX CORPORATION 

This Supplemental Consent Decree (“Supplemental Decree”), upon entry by the Court, supplements and modifies the
Consent Decree with Defendant AVX Corporation that was entered by this Court on February 3, 1992 with regard to the New Bedford Harbor Site (the “1992 Consent Decree”) by adding new provisions, deleting certain provisions, and revising
certain other provisions, which affect the parties’ rights and obligations only on and after the date of entry of this Supplemental Decree. Except as specifically provided in this Supplemental Decree, all provisions of the 1992 Consent Decree
otherwise remain in full force and effect. The 1992 Consent Decree is attached hereto as Appendix A. 
 The 1992
Consent Decree resolved the claims that the United States of America (“United States”) and the Commonwealth of Massachusetts (“Commonwealth”) (collectively referred to as “Plaintiffs”) then had against AVX Corporation
(“AVX”). 

 

 
  
 This
Supplemental Decree resolves claims that Plaintiffs now seek to assert against AVX, which claims Plaintiffs contend are authorized or provided for in Paragraphs 16 and 18 of the 1992 Consent Decree. 

Together, the 1992 Consent Decree and this Supplemental Decree resolve Plaintiffs’ claims against AVX with regard to
the New Bedford Harbor Site except as set forth in these Decrees. 
 Introduction 

Subsequent to the entry of the 1992 Consent Decree, the United States Environmental Protection Agency (“EPA”)
implemented the remedy for Operable Unit 2 (“OU2”) at the Site, as set forth in the April 6, 1990 Record of Decision (“ROD”), as modified. EPA completed the work for the OU2 remedy in May 2000. 

On September 25, 1998, EPA issued a ROD selecting the remedy for Operable Unit 1 (“OU1”) at the Site,
including the State enhanced remedy. The Commonwealth concurred on the OU1 selected remedy. The remedy for OU1, as modified, at the Site includes: the dredging and disposal of contaminated sediment; construction of on-site containment facilities for
dredged sediment contaminated with polychlorinated biphenyls; long-term monitoring and maintenance of the facilities; long-term monitoring of the Site; and institutional controls. 

Following the issuance of the OU1 ROD, from 1999 through 2004, EPA performed remedial design and remedial action
activities. In 2004, EPA began full-scale dredging of contaminated sediment as part of the OU1 remedy. 

Pursuant to a cost-sharing agreement known as the “Superfund State Contract Between the Commonwealth of Massachusetts
and the U.S. Environmental Protection Agency for the Response Related to the New Bedford Harbor Site Upper and Lower Harbor Operable Unit, New 2 

 

 
  
 Bedford,
Massachusetts,” last executed on February 28, 2000, as amended, the Commonwealth has been, inter alia, obligated to fund and has funded a portion of the OU1 remedy that EPA has performed, and the Commonwealth has been obligated to perform
certain operation and maintenance activities. 
 The United States and the Commonwealth assert that the
conditions giving rise to claims against AVX, as set forth in the reservations of rights in Paragraphs 16 and 18 of the 1992 Consent Decree, have occurred, thereby allowing Plaintiffs to seek from AVX response costs or performance of the OU1 remedy.

 On April 18, 2012, EPA issued to AVX a Unilateral Administrative Order (Docket No. CERCLA-01-2012-0045)
(“Administrative Order”), pursuant to Section 106 of CERCLA, 42 U.S.C. § 9606, and the 1992 Consent Decree, directing AVX to perform a remedial design and to implement the remedial design by performing a remedial action and
performing operation and maintenance of such remedial action for the OU1 remedy. 
 The parties have engaged in
good faith negotiations with one another to resolve the allegations and rights of Plaintiffs under Paragraphs 16 and 18 of the 1992 Consent Decree and the defenses and rights of AVX regarding Plaintiffs’ claims. 

The United States, the Commonwealth, and AVX agree, and by modifying the 1992 Consent Decree as provided in this
Supplemental Decree, this Court finds that the settlement memorialized in this Supplemental Decree, without prolonged and complicated litigation and without the admission or adjudication of any issue of fact or law, is the most appropriate means of
resolving the parties’ claims and defenses, will expedite the cleanup of the New Bedford Harbor Site, and that this Supplemental Decree is fair, reasonable, and in the public interest. 

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 Upon entry
of this Supplemental Decree by this Court, EPA will withdraw the Administrative Order and AVX will withdraw its Freedom of Information Act requests (to EPA, the United States Department of Justice and the United States Army Corps of Engineers) and
Massachusetts Public Records Law requests to the Commonwealth (including to the Department of Environmental Protection). 
 The parties to the 1992 Consent Decree have entered into this Supplemental Decree supplementing or modifying certain provisions of the 1992 Consent Decree specifically related to the
claims asserted by Plaintiffs, by adding new provisions, deleting certain provisions, and revising certain other provisions subject to Court approval, as specified herein. 
 NOW, THEREFORE, it is hereby ORDERED, ADJUDGED, AND DECREED: This Supplemental Decree supplements or modifies those provisions of the 1992 Consent Decree as specified herein by adding new
provisions, deleting certain provisions, and revising certain other provisions, which affect the parties’ rights and obligations only on and after the date of entry of this Supplemental Decree. Except as specifically provided in this
Supplemental Decree, all provisions of the 1992 Consent Decree otherwise remain in full force and effect. In the case of any conflict between the 1992 Consent Decree and this Supplemental Decree, this Supplemental Decree shall control. Further,
nothing in this Supplemental Decree shall limit, modify or otherwise affect the rights or obligations of any party in either the Administrative Settlement Agreement and Order on Consent for Non-Time Critical Removal Action (CERCLA Docket
No. 01-2010-0017) between AVX and EPA, effective June 3, 2010, or the Administrative Consent Order and Notice of Responsibility in the Matter of AVX Corporation, File No. ACO-SE-09-3P-016, Release Tracking Number 4-0601 between AVX and the
Commonwealth. having an effective date of June 3, 2010. 

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Jurisdiction 
 1. The United States District Court for the District of Massachusetts (“Court”) has jurisdiction over the subject matter of this action and the parties to this Supplemental
Decree pursuant to 28 U.S.C. §§ 1331 and 1345, Section 113(b) of CERCLA, 42 U.S.C. § 9613(b), Section 7003 of RCRA, 42 U.S.C. § 6973, Section 504 of the CWA, 33 U.S.C. § 1564, and Section 13 of the 1899
Act, 33 U.S.C. § 407, and has pendent jurisdiction over the claims arising under state law. This Court has personal jurisdiction over AVX which, for purposes of this Supplemental Decree, waives all objections and defenses that it may have to
jurisdiction of the Court or to venue in this District. 
 Applicability of Supplemental Decree 

	 	 2.
	  
	 Paragraph 2 in the 1992 Consent Decree is unchanged except that: 

A. In the first sentence of Paragraph 2.A., the location of AVX’s executive 

offices is changed from “New York, New York” to “Fountain Inn, South Carolina”; 

B. At the end of the initial clause of the final sentence of Paragraph 2.A., “of the 1992 Consent Decree and
Paragraph 16 of this Supplemental Decree” is inserted after “Paragraphs 14 and 15” and before the comma; and C. At the end of Paragraph 2.C. “including the Massachusetts Department of Transportation, including as successor to
Massachusetts Department of Public Works” is inserted after “permitted by law” and before the period. 
 3. The provisions of this Supplemental Decree shall apply to and be binding on the 
 United States and the Commonwealth and on AVX and its successors and assigns. Changes in the ownership or corporate form or status of AVX shall have no effect on AVX’s obligations
under this Supplemental Decree. 

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 Effect of
Settlement 
 4. This Supplemental Decree was negotiated and executed by the parties hereto in good faith to
avoid expensive and protracted litigation and is a fair and equitable settlement of claims which were contested as to validity, liability and amount. Neither this Supplemental Decree, nor any part thereof, nor the entry into, nor any performance
under this Supplemental Decree by AVX shall constitute or be construed as a finding or admission or acknowledgement of the factual or legal allegations contained in the Complaints, Administrative Order, or other pleadings in this case, of any
liability, fault or wrongdoing, or evidence of such, or an admission of violation of any law, rule, regulation, or policy, by AVX, or by its parent company, affiliates, subsidiaries or related entities, directors, officers, stockholders, employees,
agents, assigns, trustees, contractors, or successors or predecessors (including their respective parent companies, affiliates, subsidiaries or related entities, directors, officers, stockholders, employees, agents, assigns, trustees, and
contractors), nor shall this Supplemental Decree nor any performance hereunder create any rights on behalf of any other person not a party to this Supplemental Decree. AVX expressly reserves any and all rights (including any right to contribution),
defenses, claims, demands, and causes of action which it may have with respect to any matter, action, event, claim or proceeding relating in any way to the New Bedford Harbor Site (as hereafter defined) against any other person not a party to this
Supplemental Decree. AVX further specifically reserves the right to contest any allegations in the Complaints, Administrative Order, or other pleadings in this case, except as otherwise specified herein. Additionally, pursuant to
Section 122(d)(1)(B) of CERCLA, 42 U.S.C. § 9622(d)(1)(B), the fact of AVX’s participation in this Supplemental Decree shall not be admissible in any judicial or 

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administrative proceeding other than as provided in this Supplemental Decree, or in a suit for 

contribution. 
 5. Upon approval and entry of this Supplemental Decree by the Court, the 1992 
 Consent Decree, as modified by this Supplemental Decree, shall constitute a final judgment 
 between and among Plaintiffs and AVX. 
 Definitions

 6. This Supplemental Decree incorporates the definitions set forth in Section 101 of 

CERCLA, 42 U.S.C. § 9601. In addition, all initially-capitalized terms used herein, unless defined in this
Supplemental Decree, shall have the meaning provided in the 1992 Consent Decree. 
 A. “Aerovox
Facility” has the same meaning as “Site” in Paragraph 8.ee. of the Administrative Settlement Agreement and Order on Consent for Non-Time Critical Removal Action (CERCLA Docket No. 01-2010-0017) between AVX and EPA, effective
June 3, 2010, the text of which is attached hereto as Appendix B. 
 B. “New Bedford Harbor Site”
or “Site.” The definition in the 1992 Consent Decree is unchanged except that the final sentence is deleted and replaced with “The Site does not include any portion of the Aerovox Facility.” C. “RODs” means the record
of decision for OU2 at the New Bedford Harbor Site signed on April 6, 1990, and the record of decision for OU1 at the New Bedford Harbor Site signed on September 25, 1998. 

D. “Superfund Interest Rate” means the rate specified for interest on investments of the EPA Hazardous Substance
Superfund established by 26 U.S.C. § 9507, compounded annually on October 1 of each year, in accordance with 42 U.S.C. § 9607(a). The 7 

 

 
  
 applicable
rate of interest shall be the rate in effect at the time the interest accrues. The rate of 
 interest is subject
to change on October 1 of each year. 
 Payment Terms 

	 	 7.
	  
	 Payments Required Under this Supplemental Decree 

A. AVX shall pay $366,250,000, plus interest, in three payments as specified 

herein to Plaintiffs, to resolve Plaintiffs’ claims against AVX, which claims Plaintiffs contend 

are authorized or provided for in Paragraphs 16 and 18 of the 1992 Consent Decree. 

(1) As an initial payment, within thirty (30) days after the date of entry of this Supplemental Decree, AVX shall pay
to Plaintiffs not less than $133,350,000.00, plus interest on $366,250,000 at the Superfund Interest Rate from August 1, 2012 through the date of the initial payment. 
 (2) As a second payment, within one year after the date of entry of this Supplemental Decree, AVX shall pay to Plaintiffs not less than the amount that makes the sum of all payments made
by AVX through the date of the second payment, exclusive of all interest payments, total not less than $244,166,666.67, plus interest at the Superfund Interest Rate on the unpaid balance from the date of the initial payment or, in the event that one
or more prepayment(s) pursuant to Paragraph 7.B. below has been made during the intervening time period, from the date of the immediately prior payment through the date of this second payment. 

(3) As a third and final payment, within two years after the date of entry of this Supplemental Decree, AVX shall pay to
Plaintiffs not less than the amount that makes the sum of all payments, exclusive of all interest payments, made by AVX through the date of the third and final payment equal to $366,250,000, plus interest at the 8 

 

 
  
 Superfund
Interest Rate on the unpaid balance from the date of the second payment or, in the event that one or more prepayment(s) pursuant to Paragraph 7.B. below has been made during the intervening time period, from the date of the immediately prior payment
through the date of this third and final payment. 
 B. Notwithstanding the terms of Paragraph 7.A. above, AVX
may prepay any scheduled payment, or portion of any scheduled payment, provided that any prepayment includes interest at the Superfund Interest Rate on the unpaid balance from the date of the prior payment through the date of the prepayment.

 C. In the event of AVX’s failure to make any payment pursuant to Paragraph 7.A. on the date such payment
is due, or in the event of AVX’s failure to satisfy any of the Financial Guarantee provisions of Paragraphs 11 through 14 of this Supplemental Decree, Plaintiffs jointly or individually may, without notice or demand, declare the entire unpaid
balance and any accrued interest and stipulated penalties then unpaid immediately due and payable. 
 8. Payments
pursuant to Paragraph 7 of this Supplemental Decree shall be made to 
 EPA by Fedwire Electronic Funds Transfer
(“EFT”) to: 
 Federal Reserve Bank of New York ABA = 021030004 Account = 68010727 SWIFT address =
FRYNUS33 33 Liberty Street New York, NY 10045 
 Field Tag 4200 of Fedwire message should read “D 68010727
Environmental Protection Agency” 
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	 9.
	  
	 At the time of any payment, AVX shall send notice that payment has been made 

to: 
 A. EPA Region 1 by email at stanley.elainet@epa.gov, and by mail to: 
 Elaine T. Stanley 
 Remedial Project Manager

 United States Environmental Protection Agency 

Region 1, New England 

	 5
	  
	 Post Office Square, Suite 100 

Boston, MA 02109 
 B. EPA Cincinnati Finance Office by email at 

acctsreceivable.cinwd@epa.gov, or by mail to: 
 EPA Cincinnati Finance Office 

	 26
	  
	 Martin Luther King Drive 

Cincinnati, Ohio 45268 
 C. Commonwealth recipients: 
 By mail to:

 Office of the Attorney General 
 Chief, Environmental Protection Division 
 One
Ashburton Place 
 Boston, MA 02108 
 and 
 Chief Financial Officer MassDEP 

One Winter Street Boston, MA 02108 and by e-mail to paul.craffey@state.ma.us. 

Any notice of payment shall refer to Site/Spill ID Number 0143 and Department of Justice case number 90-11-2-32/2 for this
action, case name: United States and Commonwealth of Massachusetts v. AVX Corporation, et al., and to MassDEP Release Tracking Number 4-0000122. 
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 10. Any
payments received by EPA, on behalf of Plaintiffs, pursuant to Paragraph 7 above shall be deposited by EPA in the New Bedford Harbor Reopener Special Account to be retained and used to conduct or finance future response actions at or in connection
with the Site. If response actions are completed and funds remain in the Special Account, Plaintiffs shall distribute the remaining balance towards their past costs at the Site, pursuant to an agreement between Plaintiffs. If response actions are
complete and all past costs have been reimbursed, and all obligations under said agreement between Plaintiffs have been satisfied, remaining funds may be transferred to the EPA Hazardous Substance Superfund. 

Financial Guarantee 
 11. AVX shall establish and maintain a financial guarantee in the amount of the outstanding balance due under this Supplemental Decree following AVX’s initial payment pursuant to
Paragraph 7.A.(1) above, plus accrued and unpaid interest, if any, at the Superfund Interest Rate starting on August 1, 2012, for the sole benefit of Plaintiffs until the final payment is made under Paragraph 7.A.(3) above. Any payments made
pursuant to the Financial Guarantee provisions in Paragraphs 11 through 14 of this Supplemental Decree shall be paid to Plaintiffs in accordance with Paragraphs 8 and 9 above, and shall be deposited in accordance with Paragraph 10 above, to be
retained and used as provided therein. The financial guarantee, which must be satisfactory in form and substance to Plaintiffs, shall be in the form of one or more of the following mechanisms (provided that, if AVX intends to use multiple
mechanisms, such multiple mechanisms shall be limited to surety bonds guaranteeing payment, letters of credit, trust funds, and insurance policies): 
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 A. A
surety bond unconditionally guaranteeing payment that is issued by a surety company among those listed as acceptable sureties on federal bonds as set forth in Circular 570 of the U.S. Department of the Treasury; B. One or more irrevocable letters of
credit, payable to or at the direction of Plaintiffs, that is issued by one or more financial institution(s) (1) that has the authority to issue letters of credit and (2) whose letter-of-credit operations are regulated and examined by a
federal or state agency; C. A trust fund established for the benefit of Plaintiffs, that is administered by a trustee (1) that has the authority to act as a trustee and (2) whose trust operations are regulated and examined by a federal or
state agency; D. A policy of insurance that (1) provides Plaintiffs with acceptable rights as a beneficiary thereof, and (2) is issued by an insurance carrier (i) that has the authority to issue insurance policies in the applicable
jurisdiction(s), and (ii) whose insurance operations are regulated and examined by a federal or state agency; E. A demonstration by AVX that it meets the financial test criteria of 40 C.F.R. § 264.143(f), provided that all other
requirements of 40 C.F.R. § 264.143(f) are met to Plaintiffs’ satisfaction; or F. A written guarantee executed in favor of Plaintiffs, by one or more of the following: (1) a direct or indirect parent company of AVX, or (2) a
company that has a “substantial business relationship” (as defined in 40 C.F.R. § 264.141(h)); provided, however, that any company providing such a guarantee must demonstrate to the satisfaction of Plaintiffs that it satisfies the
financial test and reporting requirements for owners and operators set forth in subparagraphs (1) through (8) of 40 C.F.R. § 264.143(f) that it proposes to guarantee hereunder. 

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 12. AVX
has selected and Plaintiffs have found satisfactory, as an initial financial guarantee, the financial test pursuant to Paragraph 11.E. above in the form attached hereto as Appendix C.1. Within ten (10) days after the date of entry of this
Supplemental Decree, AVX shall execute or otherwise finalize all instruments or other documents required in order to make the selected financial guarantee(s) legally binding in a form substantially identical to the document attached hereto as
Appendix C.1., and such financial guarantee(s) shall thereupon be fully effective. Within thirty (30) days after the date of entry of this Supplemental Decree, AVX shall submit copies of all executed and/or otherwise finalized instruments or
other documents required in order to make the selected financial guarantee(s) legally binding to the EPA Regional Financial Management Officer at 5 Post Office Square, Suite 100, Boston, MA 02109, with a copy to the Regional Administrator at the
same address. AVX shall simultaneously submit to Chief Financial Officer, MassDEP, One Winter Street, Boston, MA 02108 a duplicate copy of all submittals to EPA made pursuant to this Paragraph. 

13. If, at any time after the date of entry of this Supplemental Decree, AVX provides a financial guarantee by means of a
demonstration pursuant to Paragraph 11.E., AVX shall effect, in accordance with the requirements of 40 C.F.R. § 264.143(f), the following: A. The initial submission of required financial reports and statements from AVX’s chief financial
officer (“CFO”) and independent certified public accountant (“CPA”), in the forms attached hereto as Appendices C.1. and C.3., respectively; 
 B. The annual resubmission of such documents within ninety (90) days after 
 the close of AVX’s fiscal year in the forms attached hereto as Appendices C.2. and C.3.; 
 C. The prompt notification of EPA after AVX determines that it no longer satisfies the financial test requirements set forth at 40 C.F.R. § 264.143(f)(1), and in any event 13

 

 
  
 within
ninety (90) days after the close of any fiscal year in which AVX no longer satisfies such financial test requirements; and D. In addition to the initial submission and annual resubmissions from AVX’s CFO pursuant to Paragraphs 13.A. and
13.B. above, quarterly certifications (based on the most recent financial statements and in the form attached hereto as Appendix C.4.) indicating that, based on a reasonable inquiry, the CFO is not aware of any transactions or events likely to arise
within the next reporting period that would materially impair AVX’s ability to make the payments on the outstanding balance. AVX shall simultaneously submit to MassDEP at the address provided in Paragraph 12 above a duplicate copy of all
submittals to EPA made pursuant to this Paragraph. 
 14. In the event that Plaintiffs determine at any time that
a financial guarantee provided by AVX under Paragraph 11.E. above is inadequate based on the requirements of 40 C.F.R. § 264.143(f) and the Financial Guarantee provisions in Paragraphs 11 through 13 of this Supplemental Decree, or in the event
that AVX becomes aware of information indicating that a financial guarantee provided is inadequate or otherwise no longer satisfies the requirements due to any other reason, AVX, within thirty (30) days after receipt of notice of
Plaintiffs’ determination or, as the case may be, within thirty (30) days after AVX becomes aware of such information, shall obtain and present to Plaintiffs for approval a proposal for a revised or alternative form of financial guarantee
listed in Paragraph 11 above that satisfies all requirements set forth in that Paragraph; provided, however, that if AVX cannot obtain such revised or alternative form of financial guarantee within such 30-day period, and provided further that AVX
shall have commenced to obtain such revised or alternative form of financial guarantee within such 30-day period, and thereafter diligently proceeds to obtain the same, 14 

 

 
  
 Plaintiffs
shall extend such period for such time as is reasonably necessary for AVX in the exercise of due diligence to obtain such revised or alternative form of financial guarantee, such additional period not to exceed thirty (30) days. 

Covenants Not To Sue By Plaintiffs 
 15. In consideration of the payments made pursuant to Paragraph 7 above, and except as specifically provided in Paragraphs 19, 20.A. and 20.B. of the 1992 Consent Decree and Paragraph 16
of this Supplemental Decree: A. The United States and the Commonwealth covenant not to sue or to take any other civil judicial or administrative action against AVX as authorized or provided for in Paragraphs 16, 17, and 18 of the 1992 Consent
Decree; B. The United States and the Commonwealth further covenant not to sue or to take any other civil judicial or administrative action against AVX for claims reserved by Plaintiffs in Paragraphs 20.C. and 20.D. of the 1992 Consent Decree,
subject to the further exception of the reservations set forth in Paragraphs 16.C. and 16.D. below; and C. Furthermore, the last two sentences of Paragraph 14 of the 1992 Consent Decree shall be deleted and the following sentence added: “These
covenants not to sue shall take effect upon receipt by the Plaintiffs of the payments required in Paragraphs 7-13 above.” D. The covenants not to sue set forth in Paragraphs 15.A. and 15.B. above, and the modification to Paragraph 14 of the
1992 Consent Decree set forth in Paragraph 15.C. above, shall take effect upon AVX’s payment of all monetary amounts including interest that are required pursuant to Paragraph 7 above and payment of all interest accrued on late payments and
accrued stipulated penalties described in Paragraph 18 below, if any. 
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 16. As to
the covenants not to sue in Paragraph 15 above, the United States and the Commonwealth reserve all rights against AVX with respect to all matters other than those expressly specified in Paragraph 15 above, including: A. Claims based on a failure by
AVX to satisfy the requirements of this Supplemental Decree; 
 B. Claims for criminal liability; 

C. Claims arising from the past, present, or future disposal, release or threat 

of release of hazardous substances or oil or hazardous materials outside of the New Bedford Harbor Site; and D. Claims
arising from the past, present, or future disposal, release or threat of release of hazardous substances or oil or hazardous materials taken from the New Bedford Harbor Site (but excluding claims arising from the past, present, or future disposal,
release or threat of release of hazardous substances or oil or hazardous materials taken from the New Bedford Harbor Site after the date of entry of this Supplemental Decree consistent with Section 122(f)(2)(A) of CERCLA, 42 U.S.C. §
9622(f)(2)(A)). 
 Covenants by Defendant AVX 

	 17.
	  
	 A. Paragraph 21 in the 1992 Consent Decree is deleted in its entirety and is 

replaced with Paragraphs 17.B. through 17.E. in this Supplemental Decree. 

B. AVX hereby releases and covenants not to sue or assert any claims, or to bring any administrative action, against the
United States or the Commonwealth for any claims arising from the New Bedford Harbor Site or any response actions taken at the Site, including but not limited to the counterclaims asserted in AVX’s Answers to the Complaints, and including but
not limited to any direct or indirect claim pursuant to Section 112 of CERCLA, 42 U.S.C. 
 16 

 

 
  
 §
9612, or pursuant to any other statute, regulation, common law, or legal theory, against the Hazardous Substances Superfund, for reimbursement relating to the New Bedford Harbor Site, provided, however, that: (i) in the event that Plaintiffs
institute proceedings against AVX pursuant to Paragraph 19 of the 1992 Consent Decree, AVX reserves the right to reassert the counterclaim against the U.S. Army Corps of Engineers as set forth in its Answer to the Complaints solely as, and to the
extent of, a setoff against the claims asserted by Plaintiffs; and (ii) as described in Paragraph 17.E. of this Supplemental Decree, AVX reserves its rights as set forth in Paragraph 17.E. of this Supplemental Decree. AVX hereby releases and
covenants not to sue or assert any claims, or to bring any administrative action against the United States or the Commonwealth arising out of the implementation of the RODs, as modified, including the State enhanced remedy. Nothing in this
Supplemental Decree shall be deemed to constitute preauthorization of a claim within the meaning of Section 111 of CERCLA, 42 U.S.C. § 9611. 
 C. AVX waives any rights it may have to seek judicial or administrative review of the RODs, as modified, and of any actions taken to implement the RODs, as modified, including the State
enhanced remedy. AVX further waives any direct or indirect claim relating to the New Bedford Harbor Site pursuant to M.G.L. c. 30, §§ 61-62H and 301 C.M.R. § 11.00 et seq. 

D. AVX waives any rights it may have to seek a setoff or offsets pursuant to Paragraph 22 of the 1992 Consent Decree;
accordingly Paragraph 22 of the 1992 Consent Decree is deleted. 
 E. To the extent that the United States or the
Commonwealth assert a claim against AVX for non-compliance with the terms of this Supplemental Decree, AVX reserves its rights and defenses arising from that claim. 
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Stipulated Penalties 
 18. A. If any payment required by Paragraph 7 of this Supplemental Decree is not made by the date specified in that Paragraph, AVX shall be liable to the United States for interest on 90%
of the overdue amount(s), from the time payment was due until full payment is made, at the higher of (1) the rate established by the Department of the Treasury under 31 U.S.C. § 3717 and 4 C.F.R. § 102.13, or (2) ten percent per
annum, and AVX shall be liable to the 
 Commonwealth for interest on 10% of the overdue amount(s), from the time
payment was due until full payment is made, at the rate set forth in Section 13 of Chapter 21E, Massachusetts General Laws. 
 B. If any payment required by Paragraph 7 of this Supplemental Decree is not made by the date specified therein, AVX shall pay stipulated penalties in the following amounts for each day of
each and every violation of said requirements: Days of Delay Penalty Per Violation Per Day 1-14 $25,000/day 15-30 $50,000/day Beyond 30 Days $75,000/day C. Stipulated penalties due to Plaintiffs under this Supplemental Decree shall be paid 90% to
the United States and 10% to the Commonwealth. Payments to the United States shall be made to the United States Treasury according to EFT instructions to be provided to AVX at the time Stipulated Penalties arise. Payments due to the Commonwealth for
accrued interest on late payments and for accrued stipulated penalties shall be made to the Office of the Attorney General, with a copy of such payment to MassDEP, at the addresses listed in Paragraph 9.C. above. 

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 D.
Interest and stipulated penalties shall accrue from the due date of the payment regardless of whether Plaintiffs have notified AVX of the overdue payment. AVX shall pay any accrued interest on late payments or stipulated penalties that have accrued
within fifteen (15) days after receipt of a demand by the United States or the Commonwealth for payment. Such demand shall be sent by certified or express mail to: Chief Financial Officer, AVX Corporation, 1 AVX Boulevard, Fountain Inn, SC
29644. A copy of any demand shall be sent to counsel for AVX to: Mary K. Ryan and Gary L. Gill-Austern, Nutter, McClennen & Fish, Seaport West, 155 Seaport Boulevard, Boston, MA 02210. Interest under and stipulated penalties under this
Paragraph do not preclude Plaintiffs from seeking any other remedies or sanctions that may be available to them on account of AVX’s failure to comply with the terms of this Supplemental Decree. 

E. In calculating its income tax, AVX shall not deduct any penalties under 

this Supplemental Decree pursuant to this Paragraph 18. 

Retention of Response Authority 
 19. This Supplemental Decree shall not be construed to limit the authority of the United States or the Commonwealth to take any and all response actions relating to the New Bedford Harbor
Site authorized by federal or state law. 
 Compliance with Other Laws 

	 20.
	  
	 This Supplemental Decree shall not be construed to in any way to relieve AVX or 

any other person or entity from the obligation to comply with any federal, state or local law. 

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 Retention
of Jurisdiction 
 21. The Court shall retain jurisdiction of this matter between Plaintiffs and AVX for the
purpose of entering such further orders, direction, or relief as may be appropriate for the construction, implementation, or enforcement of this Supplemental Decree. 
 Public Comment 
 22. This Supplemental Decree shall
be subject to a 30-day public comment period consistent with Section 122(d)(2) of CERCLA, 42 U.S.C. § 9622(d)(2), and 28 C.F.R. § 50.7. The United States reserves the right to withdraw or withhold its consent if comments regarding
this Supplemental Decree disclose facts or considerations which indicate that this Supplemental Decree is inappropriate, improper or inadequate. In the event of the United States’ withdrawal from this Supplemental Decree, the Commonwealth
reserves its right to withdraw from this Supplemental Decree. The Commonwealth also reserves the right to withdraw or withhold its consent to the entry of this Supplemental Decree if comments received disclose facts or considerations which show that
this Supplemental Decree violates State law. In the event of the Commonwealth’s withdrawal from this Supplemental Decree, the United States reserves its right to withdraw from this Supplemental Decree. AVX consents to the entry of this
Supplemental Decree without further notice. 
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 THE
FOREGOING Supplemental Decree among plaintiffs the United States of America and the Commonwealth of Massachusetts and defendant AVX Corporation in United States v. AVX Corporation, Civ. No. 83-3882-Y (D. Mass.), is hereby 

APPROVED AND ENTERED THIS DAY OF, 201_. 

United States District Judge 

District of Massachusetts 
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SUPPLEMENTAL CONSENT DECREE: Civ. No. 83-3882-Y (D.Mass.) 

FOR THE UNITED STATES: 
 IGNIAS. MORENO Assi nt Attorney General 

Environment and Natural Resources Division U.S. Department of Justice 

~~~ 
 _o 
 JEROME W.MacLAUGHLIN KEITH T. TASHIMA BRADLEY
L. LEVINE Trial Attorneys Environmental Enforcement Section Environment and Natural Resources Division 
 U. S.
Department of Justice 
 P. O. Box 7611 
 Ben Franklin Station 
 Washington, D.C. 20044

 CARMEN M. ORTIZ 
 United States Attorney for the 
 District of
Massachusetts 
 JENNIFER SERAFYN Assistant United States Attorney District of Massachusetts John Joseph Moakley
Federal Courthouse 1 Courthouse Way, Suite 9200 Boston, MA02210 
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SUPPLEMENTAL CONSENT DECREE: 
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SUPPLEMENTAL CONSENT DECREE: Civ. No. 83-3882-Y (D.Mass.) 

FOR THE COMMONWEALTH OF MASSACHUSETTS: 
 MATTHEW BROCK 
 Assistant Attorney General

 Environmental Protection Division 
 One Ashburton Place 
 Boston, Massachusetts 02108

 KENINT KIMMELL Commissioner 
 Department of Environmental Protection Commonwealth of Massachusetts One Winter Street Boston, Massachusetts 02108 
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SUPPLEMENTAL CONSENT DECREE: Civ. No. 83-3882-Y (D.Mass.) 

KURTP. CUMMINGS 
 Chief Financial Officer, Vice President, 

Treasurer and Secretary 
 A VX Corporation 

	 1
	  
	 A VX Boulevard 

 Fountain Inn, SC 29644 
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 APPENDICES

 Appendix A — 1992 Consent Decree 
 Appendix B — Paragraph 8.ee. from Administrative Settlement Agreement and Order on 
 Consent for Non-Time Critical Removal Action (CERCLA Docket No. 01- 
 2010-0017) between AVX and EPA, effective June 3, 2010 
 Appendix C — Financial Assurance Forms 

	 C.1.
	  
	 Form of Initial Submission 

	 C.2.
	  
	 Sample CFO Letter 

	 C.3.
	  
	 Sample CPA Report 

	 C.4.
	  
	 Form of Quarterly Certification 

26 

 

 
  
 UNITED
STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS 
 ID STATES OF AMERICA, Plaintiff, 

AVX CORPORATION, et al., Defendants. 

 
 COMMONWEALTH OF
MASSACHUSETTS, Plaintiff, 
 AVX CORPORATION, et al., Defendants. 

CONSENT DECREE WITH DEFENDANT AVX CORPORATION This Consent Decree (“Decree”) is made and entered into by the
United States of America (“United States”) and the Commonwealth of Massachusetts (“Commonwealth”) (collectively referred to as “Plaintiffs”), and AVX Corporation (“AVX”). 

Introduction 
 The United States, on behalf of the National Oceanic and Atmospheric Administration (“NOAA”), as a federal trustee, and the Commonwealth as state trustee
(“Commonwealth” or “state trustee”) filed complaints in these consolidated actions on December 9 and 10, 1983, respectively, seeking damages for injury to, destruction of, and loss of natural resources resulting from releases of
polychlorinated biphenyls (“PCBs”) and other hazardous substances in New Bedford Harbor, Massachusetts, and adjacent waters under Section 107 of the Comprehensive 

 

 
  
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 Environmental Response, Compensation and
Liability Act, 4 2 U.S.C. § 9607 (“CERCLA”). 
 Plaintiffs filed amended complaints (hereinafter
“Complaints”) in these actions on February 27 and 28, 1984. The United States’ Complaint set forth, in addition to the claim for natural resource damages described above, claims on behalf of the United States Environmental
Protection Agency (“EPA”) for recovery of response costs under Section 107 of CERCLA, and for injunctive relief under Section 106 of CERCLA, 42 U.S.C. § 9606, Section 7003 of the Resource Conservation and Recovery Act,
4 2 U.S.C. § 6973 (“RCRA”), Section 504 of the Clean Water Act, 33 U.S.C. § 1364 (“CWA”), and Section 13 of the Rivers and Harbors Act of 1899, 33 U.S.C. § 407 (“1899 Act”). The
Commonwealth’s Complaint set forth, in addition to its claims for natural resource damages described above, claims for recovery of response costs incurred by the Commonwealth under Section 107 of CERCLA, 

42 U.S.C. § 9607, Sections 5(a) and 13 of Chapter 21E, Massachusetts General Laws, and Section 27 of Chapter 21,
Massachusetts General Laws, and claims for abatement of a public nuisance and abatement of an abnormally dangerous condition under state common law. 
 CIVIL ACTION NO. 83—3882—Y 
 The
Complaints assert claims against five current defendants, AVX, Aerovox Incorporated, Belleville Industries, Inc., Cornell-Dubilier Electronics, Inc., and Federal Pacific Electric Company. This Decree is solely between the Plaintiffs and AVX.

 

 
  
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 The parties to this Decree agree that
settlement of the claims in this case against AVX is in the public interest and is made in good faith, and that entry of this Decree is the most appropriate means to resolve the matters covered herein. 

NOW, THEREFORE, it is hereby ORDERED, ADJUDGED, AND 

DECREED: 
  

Jurisdiction 
 1. The United States District Court for the District of Massachusetts (“Court”) has jurisdiction over the subject matter of this action and the parties to this Decree pursuant to
28 U.S.C. §§ 1331 and 1345, Section 113(b) of CERCLA, 42 U.S.C. § 9613(b), Section 7003 of RCRA, 42 U.S.C. § 6973, Section 504 of the CWA, 33 U.S.C. § 1564, and Section 13 of the 1899 Act, 33 U.S.C.
§ 407, and has pendent jurisdiction over the claims arising under state law. This Court has personal jurisdiction over AVX which, for purposes of this Consent Decree, waives all objections and defenses that it may have to jurisdiction of the
Court or to venue in this District. 
 Applicability of Decree 

A. Defendant AVX is a Delaware corporation with its executive offices in New York, New York. AVX is the successor by
merger of AVX Ceramics Corporation and Aerovox Corporation. Aerovox Corporation owned and operated the Aerovox Facility (as hereinafter defined) from 1938 until January 1, 1973. AVX Corporation, AVX Ceramics Corporation, and Aerovox Corporation
(including both the New York and Massachusetts corporations which 

 

 
  
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 operated under that name), together with Electrical Reactance Corporation, Precision Ceramics, Inc., Luther Manufacturing Co., Microcircuits, Inc., Wilkor Products, Inc., Acme Electronics,
Inc., Henry L. Crowley & Co., Inc., and Owen Electrical Corp., and any other subsidiaries, and all divisions of each of said companies, shall be collectively referred to herein as AVX. For purposes of Paragraphs 14 and 15, AVX shall also
refer to Aerovox Canada, Ltd., the corporation of that name whose assets were conveyed to Aerovox Industries, Inc., on January 1, 1973, but solely with respect to corporate activity prior to January 2, 1973. 

B. Plaintiff United States of America includes all departments, divisions, independent boards, administrations or agencies
of the Federal government. 
 C. Plaintiff Commonwealth of Massachusetts includes all departments, divisions,
administrations or agencies of the State government to the extent permitted by law. 
 D. The provisions of this
Decree shall apply to and be binding on the United States and the Commonwealth and on AVX and its successors and assigns. Changes in the ownership or corporate form or status of AVX shall have no effect on AVX’s obligations under this Decree.

 Effect of Settlement 
 This Decree was negotiated and executed by the parties hereto in good faith to avoid the continuation of expensive and protracted litigation and is a fair and equitable settlement of

 

 
  

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 claims which were contested as to
validity, liability and amount. Neither this Decree, nor any part thereof, nor the entry into, nor any performance under this Decree by AVX shall constitute or be construed as a finding or admission or acknowledgement of the factual or legal
allegations contained in the Complaints or other pleadings in this case, or of any liability, fault or wrongdoing, or evidence of such, or an admission of violation of any law, rule, regulation, or policy, by AVX, or by its parent company,
affiliates, subsidiaries or related entities, directors, officers, stockholders, employees, agents, assigns, trustees, contractors, or successors or predecessors (including their respective parent companies, affiliates, subsidiaries or related
entities, directors, officers, stockholders, employees, agents, assigns, trustees, and contractors), nor shall this Decree nor any performance hereunder create any rights on behalf of any other person not a party to this Decree. AVX expressly
reserves any and all rights (including any right to contribution), defenses, claims, demands, and causes of action which it may have with respect to any matter, action, event, claim or proceeding relating in any way to the New Bedford Harbor Site
(as hereafter defined) against any other person not a party to this Decree. 
 AVX further specifically reserves
the right to contest any allegations in the Complaints, except as otherwise specified herein. Additionally, pursuant to Section 122(d)(1)(B) of CERCLA, 42 U.S.C. ? 9622(d)(1)(B), the fact of AVX’s participation in this Decree shall not be
admissible in any 

 

 
  
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 judicial or administrative proceeding other than as provided in this Decree, in a proceeding to enforce this
Decree, or in a suit for contribution. 
 4. Upon approval and entry of this Decree by the Court, the Decree
shall constitute a final judgment between and among Plaintiffs and AVX. 
 Definitions 

5. This Decree incorporates the definitions set forth in Section 101 of CERCLA, 42 U.S.C. § 9601. In addition,
whenever the following terms are used in this Consent Decree, they shall have the following meanings: 
 A.
“Aerovox Incorporated” or “Aerovox” means the Delaware corporation which has owned and operated the Aerovox Facility since October 27, 1978. 
 B. “Aerovox Facility” means the manufacturing plant and associated structures and land at 740 and 742 Belleville Avenue, New Bedford, Massachusetts. 

C. “Covered Matters” has the meaning set forth in Paragraph 15 below. 

D. “DEP” means the Massachusetts Department of Environmental Protection. 

E. “Federal Trustees” means the Secretary of Commerce, acting through NOAA, and the Secretary of the Interior.

 “Final Approval of the Decree” shall mean the earliest date on which all of the following have
occurred: 

 

 
  
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 (1) the Decree has been lodged with the Court and noticed in the Federal Register, and the period for
submission of public comments has expired; (2) the Court has approved and entered the Decree as a judgment; and (3) the time for appeal from that judgment has expired without the filing of an appeal, or the judgment has been upheld on
appeal and either the time for further appeal has expired without the filing of a further appeal or no further appeal is allowed. 
 G. “Natural Resources” shall have the meaning provided in Section 101(16) of CERCLA, 42 U.S.C. § 9601(16). 

H. “Natural Resource Damages” means damages, excluding costs of assessment, recoverable under Section 107
of CERCLA for injury to, destruction of, or loss of the Natural Resources of the New Bedford Harbor Site. 

“New Bedford Harbor Site” or “Site” means the New Bedford Harbor Superfund Site, located in portions
of New Bedford, Acushnet and Fairhaven, Massachusetts, including New Bedford Harbor, the Acushnet River Estuary extending north to the Wood Street Bridge, and any adjacent marine waters and sediments and shoreline areas which are the subject of
EPA’s current Remedial Investigation and Feasibility Study, including at least Areas 1, 2, and 3 as defined in 105 CMR 260.005. The Site does not include any portion of the Aerovox Facility westward (away from the Acushnet River Estuary) of the
steel sheet pile wall which Aerovox installed along the length of the tidal mudflat 

 

 
  
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 portion of the Aerovox Facility including any point source discharges originating on the Aerovox Facility. 
 J. “Remedial Action” means those response actions implemented or to be implemented pursuant to CERCLA at the New Bedford Harbor Site under the first operable unit record of
decision for the New Bedford Harbor Site signed on April 6, 1990, and the second operable unit record of decision for the New Bedford Harbor Site for which a Feasibility Study was released on August 21, 1990, and which is presently
scheduled to be signed in 1991. 
 K. “Remedial Costs” means all Response Costs incurred in connection
with the Remedial Action, as defined above, from the dates of signature of the respective records of decision for the first and second operable units at the New Bedford Harbor Site, but excluding any increase in costs resulting from any amendments
to the RODs (as hereafter defined) within the meaning of 40 C.F.R. § 300.435 (c) (2) (ii) . 

L. “Response” shall have the meaning provided in Section 101(25) of CERCLA, 42 U.S.C. § 9601(25), and
shall include any actions taken under Section 121(c) of CERCLA, 42 U.S.C. § 9621(c). 
 M.
“Response Costs” means all direct and indirect costs of response incurred for the New Bedford Harbor Site, including the costs of operation and maintenance of remedial action components. “Future Response Costs” means all Response
Costs incurred after the lodging of this Consent Decree, 

 

 
  
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 including but not limited to the costs of remedial design/remedial action; indirect costs in overseeing the
remedial design/remedial action; the costs of operation and maintenance of remedial action components; the costs the United States and the Commonwealth incur in overseeing and enforcing the obligations of parties in the above-captioned action; and
including but not limited to payroll costs, contractor costs, travel costs, and laboratory costs. 
 N.
“RODs” means the first operable unit record of decision for the New Bedford Harbor Site signed on April 6, 1990, and the second operable unit record of decision for the New Bedford Harbor Site for which a Feasibility Study was
released on August 21, 1990, and which is presently scheduled to be signed in 1991. 
 J. “State
Trustee” means the Secretary of the Executive Office of Environmental Affairs, Commonwealth of Massachusetts. 
  

Payment Terms 
 A. Within fifteen (15) business days after AVX and its counsel sign this Decree, AVX shall establish an escrow account (the “Escrow”) bearing interest on commercially reasonable
terms at a bank or trust company with assets in excess of $500 million, and AVX shall pay into the Escrow the principal amount of $66 million, plus interest on the amount at the rate of eight percent (8%) from August 23, 1990 to the date of deposit.
The Escrow agreement between AVX and the escrow agent shall 

 

 
  
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 provide that the escrow agent shall submit to the jurisdiction and venue of the United States District Court for the District of Massachusetts in connection with any litigation arising out
of the Escrow agreement. AVX shall notify Plaintiffs in writing of the creation and funding of the Escrow immediately after the payment has been made. This notice shall be sent by hand or by overnight courier service to: Chief, Environmental
Enforcement Section, Environment and Natural Resources Division, U.S. Department of Justice, Room 1541 (EES Dockets), 10th and Pennsylvania Ave, N.W., Washington, D.C., 20530; and Chief, Environmental Protection Division, Department of Attorney
General, One Ashburton Place, 19th Floor, Boston, MA 02108. AVX will be responsible for all fees, costs and charges of the escrow, and those amounts will not be deducted from the principal or interest owed from the escrow account to Plaintiffs.

 Subject only to the provisions of subparagraph C of this Paragraph, AVX’s obligation to establish the
Escrow and to pay the amount specified above into the Escrow within the specified time is a contractual obligation to Plaintiffs effective as of the date that the parties have signed the Decree, and that obligation shall be enforceable as a matter
of contract law regardless of when or whether the Decree is entered by the Court. The consideration for that contractual undertaking by AVX includes the immediate cessation of litigation activities until a determination is made whether this Decree
will be entered and the 

 

 
  
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 resolution of Plaintiffs’ claims against AVX as set forth in the Decree, if the Decree is approved and entered by the Court. 

C. All funds paid into the Escrow by AVX shall remain in the Escrow and may not be withdrawn by any person, except to make
the payments required by Paragraphs 7-13, or unless one of the following events occurs: (1) the United States or the Commonwealth notifies AVX in writing that its authorized representative(s) will not sign the Decree; (2) the United States
withdraws its consent to entry of the Decree after the Decree has been lodged, pursuant to Paragraph 31; or (3) a final judicial determination is made that the Decree will not be approved and entered. If one of these events occurs, all sums in
the Escrow shall be returned to AVX. 
 7. Within fifteen (15) business days after Final Approval of the
Decree, AVX shall cause the full principal amount of $66 million plus interest on that amount at the rate of eight percent (8%) from August 23, 1990 to the date of deposit into the Escrow under Paragraph 6 and all accrued interest thereon
from the Escrow to be disbursed from the Escrow to Plaintiffs. This amount will be allocated to response costs in the amount of $59 million (plus interest on that amount at the rate of eight percent (8%) from August 23, 1990 to the date of
deposit into the Escrow and all accrued interest on that portion from the Escrow), and to Natural Resource Damages and the costs of assessment in the amount of $7 million (plus interest on that amount at the rate of eight percent (8%) from
August 23, 1990 to the date of 

	 8.
	  
	 

 

 
  
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 deposit into the Escrow and all accrued interest on that portion from the Escrow). These payments shall be
made by AVX as described in Paragraphs 8-13. 
 9. A. AVX shall pay the sum of $8.56 million (plus interest on
that amount at the rate of eight percent (8%) from August 23, 1990 to the date of deposit into the Escrow and all accrued interest on that portion from the Escrow) to the EPA Hazardous Substances Superfund on account of past Response Costs
incurred by the United States with respect to the New Bedford Harbor Site. 
 B. The payment for past United
States Response Costs shall be made by certified or bank check payable to “EPA Hazardous Substances Superfund.” The check shall reference on its face the New Bedford Harbor Site and CERCLIS No. MAD980731335 and shall be sent to:

 EPA Region I 
 Attn: Superfund Accounting P.O. Box 360197M Pittsburgh, PA 15251 
 C. AVX shall cause copies of such check and of any transmittal letter accompanying the check to be sent to: Chief, Superfund Office, Office of Regional Counsel, EPA Region I, JFK Federal
Building (RCS), Boston, MA 02203; Chief, Environmental Enforcement Section, Department of Justice, P.O. Box 7611, Ben Franklin Station, Washington, D.C. 20044; and Chief, Environmental Protection Division, Department of the Attorney General, One
Ashburton Place, Boston, MA 02108. 
 D. 

 

 
  
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 9. A. AVX shall pay the sum of $440,000 (plus interest on that amount at the rate of eight percent
(8%) from August 23, 1990 to the date of deposit into the Escrow and all accrued interest on that portion from the Escrow) to the Commonwealth in reimbursement of past Response Costs incurred by the Commonwealth with respect to the New
Bedford Harbor Site. 
 B. The payment for past Commonwealth Response Costs 

shall be made by certified or bank check payable to “Commonwealth 

of Massachusetts,” and shall be sent to: 
 Chief, Environmental Protection Division Massachusetts Department of Attorney General One Ashburton Place, 19th Floor Boston, MA 02108 

C. AVX shall cause copies of such check and of any transmittal letter accompanying the check to be sent to: Chief, Cost
Recovery Section, Bureau of Waste Site Cleanup, Department of Environmental Protection, One Winter Street, Boston, MA 02108. 
 A. AVX shall pay the sum of $50 million (plus interest on that amount at the rate of eight percent (8%) from August 23, 1990 to the date of deposit into the Escrow and all accrued interest
on that portion from the Escrow) to Plaintiffs on account of Future Response Costs to be incurred by the United States and the Commonwealth with respect to the New Bedford Harbor Site; provided that ten percent (10%) of those amounts shall be
applied toward the Commonwealth’s obligation under Section 104(c)(3) of CERCLA to pay or assure payment of ten percent (10%) of the costs of the remedial action, including all 

 

 
  
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 future operation and maintenance. These amounts applied toward the Commonwealth’s obligation under Section 104(c)(3) of CERCLA are the subject of an agreement between the
Commonwealth and the United States Environmental Protection Agency. 
 B. Each payment for Future Response Costs
shall be made by certified or bank check payable to Plaintiffs in a manner to be directed by Plaintiffs. Plaintiffs shall provide AVX with such directions for payment in writing by certified mail or overnight courier no later than fifteen
(15) business days prior to the date payment is due to: Chief Financial Officer, AVX Corporation, 750 Lexington Avenue, New York, NY, 10022-1208. AVX is not required to make any payment for Future Response Costs, nor do the provisions of
Paragraphs 23 and 24 take effect for purposes of payment of Future Response Costs, until fifteen (15) business days after Plaintiffs provide AVX with such directions for payment. A copy of the directions for payment shall be sent to counsel for
AVX to: Mary K. Ryan, Nutter, Mcclennen & Fish, One International Place, Boston, Massachusetts, 02110-2699. 
 C. AVX shall cause copies of each such check and of any transmittal letter accompanying the check to be sent to: Chief, Superfund Office, Office of Regional Counsel, EPA Region 

I, JFK Federal Building (RCS), Boston, MA 02203; Chief, Environmental Enforcement Section, Department of Justice, P.O.

 Box 7611, Ben Franklin Station, Washington, D.C. 20044; and Chief, Environmental Protection Division,
Department of the Attorney General, One Ashburton Place, Boston, MA 02108. 

 

 
  
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 10. A. AVX shall pay the sum of $6,668,812.67, (plus interest on that amount at the rate of eight percent
(8%) from August 23, 1990 to the date of deposit into the Escrow and all accrued interest on that portion from the Escrow) into the Registry of the Court, United States District Court for the District of Massachusetts, to be administered
by the Registry of the Court for the Federal and State Trustees, in payment for Natural Resource Damages. The amount so paid and any interest accrued thereon shall be available to the Federal and State Trustees in accordance with Paragraphs 11.D.
through 11.F. below. 
 B. The payment for Natural Resource Damages shall be made by certified or bank check
payable to “Clerk, United States District Court.” The check shall include on its face a statement that it is a payment for natural resource damages in Civil Action No. 83-3882-Y (D. Mass.), and shall be sent to: 

Office of the Clerk 
 United States District Court for the District of Massachusetts 
 Room 707 
 J.W. McCormack Post Office and
Courthouse 
 Boston, Massachusetts 02109 

AVX shall cause copies of the check for Natural Resource Damages and of any transmittal letter accompanying the check to
be sent to: Chief, Environmental Enforcement Section, Department of Justice, P.O. Box 7611, Ben Franklin Station, Washington, D.C. 20044; Regional Attorney, NOAA Office of General Counsel, One Blackburn Drive—Suite 205, Gloucester, MA 01930;
Regional Solicitor, U.S. Department of the Interior, Northeast Region, One Gateway Center—Suite 612, Newton Corner, 

 

 
  
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 MA 02158; and Chief, Environmental Protection Division, Department of the Attorney General, One Ashburton Place, Boston, MA 02108. 

D. The Registry of Court shall administer all amounts paid for Natural Resource Damages under this Decree in an
interest-bearing account (“Registry Account”) as provided in the Order Directing the Deposit of Natural Resource Damages Into the Registry of the Court (“Deposit Order”) issued by this Court pursuant to Rule 67 of the Federal
Rules of Civil Procedure, 28 U.S.C. § 2041, and Local Rule 67.2(c) of the Local Rules for the U.S. District Court for the District of Massachusetts. The Deposit Order shall be attached to this Decree. 

E. All funds and all interest accrued thereon in the Registry Account shall be held in the name of the “Clerk, United
States District Court,” for the benefit of the Federal and State Trustees. Upon joint application by the United States and the Commonwealth, monies in the Registry account shall be disbursed to the Federal and State Trustees by further order of
this Court for use by the trustees to plan, implement, and oversee actions to restore, replace, or acquire the equivalent of natural resources that have been injured, destroyed, or lost as a result of the release of hazardous substances at the New
Bedford Harbor Site, in accordance with Section 107(f)(1) of CERCLA, 42 U.S.C. 
 ? 9607(f)(1). All
disbursements from the Registry Account shall be made by order of the Court in accordance with the provisions 

 

 
  
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 of 28 U.S.C. § 2042 and Local Rule 67.3 of the Local Rules for the U.S. District Court for the District
of Massachusetts. 
 F. In the event that it is later determined that the provisions of Paragraphs 11.D through
11.E are unlawful, the amounts in the Registry Account or payable under this Decree for Natural Resource Damages shall be distributed to the Federal and State Trustees as determined by further agreement of the United States and the Commonwealth or,
if no such agreement is reached within a reasonable time, by an allocation of those amounts by this Court. In making any such allocation, the Court shall consider any memorandum of agreement or memorandum of understanding between the United States
and the Commonwealth concerning the use of amounts recovered for Natural Resource Damages at the New Bedford Harbor Site, or, in the absence of any memorandum of agreement or understanding, the statute’s goal to restore, replace, or acquire the
equivalent of the injured or lost natural resources. All amounts recovered for Natural Resource Damages at the Site and all interest accrued thereon shall be used in accordance with Section 107(f)(1) of CERCLA. 

A. AVX shall pay the sum of $ 205,946.47 (plus interest on that amount at the rate of eight percent (8%) from August 23,
1990 to the date of deposit into the Escrow and all accrued interest on that portion from the Escrow) to NOAA in reimbursement of the federal costs of assessing Natural Resource Damages. 

 

 
  
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 B. This payment shall be made by certified or bank check payable to “The National Oceanic and Atmospheric Administration”, and shall be sent to: 

General Counsel 
 National Oceanic and Atmospheric Administration Room 5814 Herbert Hoover Building 14th & Constitution Avenue, N.W. 

Washington, D.C. 20230 
 C. AVX shall cause copies of this check and of any transmittal letter accompanying the check to be sent to: Chief, Environmental Enforcement Section, Department of Justice, P.O. Box 7611,
Ben Franklin Station, Washington, D.C. 20044; and Chief, Environmental Protection Division, Department of the Attorney General, One Ashburton Place, Boston, MA 02108. 
 12. A. AVX shall pay the sum of $ 125,240.86, (plus interest on that amount at the rate of eight percent (8%) from August 23, 1990 to the date of deposit into the Escrow and all
accrued interest on that portion from the Escrow) to the Commonwealth in reimbursement of the state costs of assessing Natural Resource Damages. 
 B. This payment shall be made by certified or bank check payable to “Commonwealth of Massachusetts”, and shall be sent to: 

Chief, Environmental Protection Division Department of the Attorney General One Ashburton Place, 19th Floor Boston, MA
02108 

 

 
  
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 Covenants Not To Sue By
Plaintiffs 
 13. In consideration of the payments to be made by AVX under Paragraphs 6-13 above, and except as
specifically provided in Paragraphs 16-20, the United States and the Commonwealth covenant not to sue or to take any other civil judicial or administrative action against AVX for Covered Matters, as defined in Paragraph 15. With respect to liability
for Covered Matters other than future liability, these covenants not to sue shall take effect upon receipt by the Plaintiffs of the payments required in Paragraphs 7-13 above. With respect to any future liability of AVX, these covenants not to sue
shall take effect upon EPA’s certification of completion of the Remedial Action. 
 Covered Matters means
any civil judicial or administrative liability of AVX to the United States or the Commonwealth for (1) damages for injury to, destruction of, or loss of Natural Resources at the New Bedford Harbor Site, including costs of assessment, under Section
107(a) or CERCLA, M.G.L. c. 2IE, M.G.L. c. 21, ? 27, and federal and state common law; (2) reimbursement of response costs incurred or to be incurred by the United States or the Commonwealth with respect to the New Bedford Harbor Site under Section
107(a) of CERCLA, Section 7003 of RCRA, M.G.L. c. 21E, M.G.L. c. 21, ?? 27, 40, and state common law; and (3) injunctive relief with respect to the New Bedford Harbor Site under Section 106 of CERCLA, Section 7003 of RCRA, Section 504 of CWA, the
1899 Act, and state common law. 

 

 
  

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 15. Pre-certification reservations.
Notwithstanding any other provision of this Decree, the United States and the Commonwealth reserve the right, jointly or separately, to institute proceedings in this action or in a new action, including issuance by EPA of an administrative order,
seeking to compel AVX (1) to perform response actions at the New Bedford Harbor Site, and (2) to reimburse the United States and the Commonwealth for response costs, if, prior to EPA’s certification of completion of the Remedial
Action: 
 A. conditions at the New Bedford Harbor Site, previously unknown to the United States and the
Commonwealth, are discovered after the issuance of the RODs, or 
 B. information is received, in whole or in
part, after the issuance of the RODs, 
 and the EPA Administrator or his delegate finds, in consultation with
the Commonwealth, based on these previously Unknown conditions or this information, together with any other relevant information, that the Remedial Action is not protective of human health or the environment. 

Post-certification reservations. Notwithstanding any other provision of this Decree, the United States and the
Commonwealth reserve the right, jointly or separately, to institute proceedings in this action or in a new action, including issuance by EPA of an administrative order, seeking to compel AVX (1) to perform response actions at the New Bedford

 

 
  
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 Harbor Site, and (2) to reimburse the United States and the Commonwealth for response costs, if, after EPA’s certification of completion of the Remedial Action: 

A. conditions at the New Bedford Harbor Site, previously unknown to the United States, are discovered after the
certification of completion, or 
 B. information is received, in whole or in part, after the certification of
completion, 
 and the EPA Administrator or his delegate finds, in consultation with the Commonwealth, based on
these previously unknown conditions or this information, together with any other relevant information, that the Remedial Action is not protective of human health or the environment. 

17. Reservations in the event that Remedial Costs exceed $130.5 million. Notwithstanding any other provision of this
Decree, the United States and the Commonwealth, reserve the right, jointly or separately, to institute proceedings against AVX in this action or in a new action seeking to compel AVX (1) to perform additional response actions in connection with
the Remedial Action to the extent that the total Remedial Costs exceed $130.5 million, and (2) to reimburse the United States and the Commonwealth for any Remedial Costs over and above the first $130.5 million in Remedial Costs. 

Reservations concerning natural resource injury. Notwithstanding any other provision of this Decree, the United States and
the Commonwealth, on behalf of their respective 

 

 
  
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 natural resource trustees, reserve the right, jointly or separately, to institute proceedings against AVX in this action or in a new action Seeking recovery of Natural Resource Damages,
based on (1) conditions with respect to the Site, unknown to Plaintiffs at the date of lodging of this Decree, that result in releases of hazardous substances that contribute to injury to, destruction of, or loss of natural resources, or
(2) information received, in whole or in part, after the date of lodging of the Decree which, together with any other relevant information, indicates that there is injury to, destruction of, or loss of natural resources of a type that was
unknown, or of a magnitude greater than was known, to Plaintiffs at the date of lodging of this Decree; provided that the damages which Plaintiffs may seek to recover in any such proceedings shall be limited to damages for conditions that were
unknown to Plaintiffs at the date of lodging, or for injury to, destruction of, or loss of, natural resources that was unknown, or of a magnitude greater than was known, to Plaintiffs at the date of lodging. 

19. The covenants not to sue set forth in Paragraph 14 above do not apply to matters other than those expressly specified
as Covered Matters. The United States and the Commonwealth reserve all rights against AVX with respect to all other matters. In addition, the following are specifically identified as matters that are not Covered Matters: 

claims based on a failure by AVX to satisfy the requirements of the Decree; 

 

 
  
 A.

 —23 - 
 B. claims for criminal liability; 
 C. claims
arising from the past, present, or future disposal, release or threat of release of hazardous substances or oil or hazardous materials outside of the New Bedford Harbor Site, including claims by the Commonwealth with respect to DEP site number
4-0127 (Substation Interceptors) and DEP site number 4-0601 (Aerovox Oil Bunker), but excluding claims for response costs incurred, or for injury to, destruction of, or loss of natural resources, in the New Bedford Harbor Site from any releases of
PCBs resulting from conditions existing as of the date of lodging of the Decree at DEP site numbers 4-0127 and 4-0601; and 
 D. claims arising from the past, present, or future disposal, release or threat of release of hazardous substances or oil or hazardous materials taken from the New Bedford Harbor Site.

 Covenants by Settling Defendant 
 21. A. AVX hereby releases and covenants not to sue or assert any claims, or to bring any administrative action, against the United States or the Commonwealth for any claims arising from
the New Bedford Harbor Site or any response actions taken at the Site, including but not limited to the counterclaims asserted in AVX’s Answers to the Complaints, and including but not limited to any direct or indirect claim pursuant to
Section 112 of CERCLA, 
 42 U.S.C. ? 9612, or pursuant to any other statute, regulation, 

 

 
  
 - 24 -

 common law, or legal theory, against the Hazardous Substances Superfund, for reimbursement relating to the New
Bedford Harbor Site; provided that, in the event that Plaintiffs institute proceedings against AVX pursuant to Paragraph 16, 17, or 19, AVX reserves the right to reassert the counterclaim against the U.S. Army Corps of Engineers set forth in its
Answer to the Complaints solely as, and to the extent of, a setoff against the claims asserted by Plaintiffs. AVX reserves its rights to assert, and this Decree is without prejudice to, claims against the United States arising out of the
implementation of the RODs or any amendments thereto after the date of approval of the Decree based on grossly negligent or intentional acts or omissions of the United States, provided that such claims are brought pursuant to a statute other than
CERCLA and the waiver of sovereign immunity is found in a statute other than CERCLA, and provided that such claims may not be based upon a theory of derivative or vicarious liability. Nothing in this Decree snail be deemed to constitute
preauthorization of a claim within the meaning of Section 111 of CERCLA, 42 U.S.C. § 9611. 
 B. Except
as provided in subparagraph C below, AVX waives any rights it may have to seek judicial or administrative review of the RODs and of any actions taken to implement the RODs, except for any rights AVX may have to seek review of any amendments to the
RODs, within the meaning of 4 0 C.F.R. 
 ? 300.435(c)(2)(ii), in the event the Plaintiffs institute proceedings
pursuant to Paragraph 16 or 17. AVX further waives 

 

 
  
 - 25 -

 any direct or indirect claim relating to the New Bedford Harbor Site pursuant to M.G.L. c. 30, §§
61-62H and 301 C.M.R. § 11.00 et seq. 
 C. If, pursuant to Paragraph 18, Plaintiffs (1) seek to compel
AVX to perform response actions at the New Bedford Harbor Site, or (2) seek payment of additional Remedial Costs over and above the payments provided for in Paragraphs 7-13, AVX reserves, solely for the purpose of proceedings pursuant to
Paragraph 18, all legal rights, defenses, and counterclaims, in the nature of setoffs, it may have under law; provided, however, that under no circumstances will AVX be entitled to any reimbursement of monies paid or reduction of monies to be paid
under Paragraphs 7-13 of this Decree or to assert any challenge to Response Costs other than Remedial Costs or any challenge to response actions other than those that Plaintiffs seek to compel AVX to undertake pursuant to Paragraph 18. This
reservation to AVX’s covenants not to sue does not reserve any rights or defenses with respect to the payments provided for in Paragraphs 7-13. Without limiting the generality of the foregoing language, among the legal rights, defenses, and
counterclaims which are hereby reserved solely for the purposes of proceedings pursuant to Paragraph 18 are the following: 
 the right to reassert the counterclaim against the U.S. Army Corps of Engineers set forth in AVX’s Answer to the Complaints solely as, and to the extent of, a setoff against an action
by the Plaintiffs seeking to compel AVX to 

 

 
  
 1.

 —26 - 
 perform response actions or seeking payment of additional Remedial Costs; and 
 2. the right to seek judicial or administrative review of the RODs or of any actions taken to implement the RODs solely to the extent it constitutes a challenge to Remedial Costs or to the
response actions that Plaintiffs seek to compel AVX to undertake. 
 D. For the purposes of any proceedings
instituted by the United States or the Commonwealth pursuant to Paragraph 16 or 
 17, nothing in this Consent
Decree shall be construed to affect or to establish the appropriate scope and standard of review that the Court should apply to a finding of the EPA Administrator or his delegate that the Remedial Action is not protective of human health or the
environment. 
 Offset in Event of Reopener 

A. Because settlement of this action has been negotiated in advance of issuance of the second operable unit ROD for the
Harbor, and the amount of Future Response Costs is not known, the United States and the Commonwealth agree that, in the event the United States or the Commonwealth institutes proceedings pursuant to Paragraph 16 or 17 of this Decree against AVX and
receives a judgment for monies or for injunctive relief against AVX in the subsequent proceeding, or EPA issues an administrative order to AVX pursuant to Paragraph 16 or 17 of this Decree, AVX will be entitled to a setoff if the Plaintiffs have not
expended the amounts recovered from all parties on 

 

 
  
 20.

 —27 - 
 account of Future Response Costs plus interest calculated annually on the unexpended balance at a rate for each year following payment equal to the coupon issue yield equivalent (as
determined by the Secretary of the Treasury) of the average accepted auction price for the last auction of fifty-two week United States Treasury bills settled immediately prior to the anniversary date of the lodging of this Decree. Notwithstanding
any other provision of this Decree, in the event EPA issues an administrative order to AVX pursuant to Paragraph 16 or 17 of this Decree, AVX shall be entitled to implement any right it has to an offset under this Paragraph by, inter alia,
petitioning EPA for reimbursement pursuant to Section 106(b) of CERCLA. The amount of the setoff shall be equal to AVX’s pro rata share of the following: the total amounts recovered from all parties on account of Future Response Costs in
the above-captioned action, together with interest calculated as described above, minus the total amounts expended, or obligated it thereafter expended, for Future Response Costs (excluding Department of Justice enforcement costs, other than any
unreimbursed costs incurred to enforce AVX’s obligations under this Decree). 
 The decision of the
Plaintiffs as to the amount of any settlement proceeds from any party in this action to allocate among past response costs, Future Response Costs, and natural resource damages is within their discretion, and may not be challenged by AVX. 

 

 
  
 B.

 —28 - 
 C. There shall be no setoff if any part of the Remedial Action, including long-term operation and maintenance, remains to be performed and has not been abandoned or superseded, unless
(1) AVX assumes without reservation the obligation to finance all of the remaining Remedial Action activities, or (2) Plaintiffs agree at that time that AVX may instead assume, and AVX assumes without reservation, the obligation to perform
those remaining Remedial Action activities. 
 D. No setoff is available to AVX for any claims by the Plaintiffs
against AVX other than claims under Paragraphs 16 and 17. This paragraph may not be construed to entitle AVX to a refund or reimbursement of any amounts paid to the Plaintiffs under Paragraphs 7-13. 

E. This offset provision does not give AVX any rights to challenge the manner in which the monies recovered on account of
Future Response Costs may be used, except as provided in Paragraph 21.C. This provision does not require either the United States or the Commonwealth to establish a separate fund to hold monies recovered on account of Future Response Costs or
otherwise to segregate funds recovered in this action from any other funds. 
 In the event that the United
States and the Commonwealth institute proceedings against AVX pursuant to Paragraphs 16 and 17, the Plaintiffs agree that they will at that time provide to AVX a summary of Future Response Costs incurred for the Site, for the purpose of enabling AVX
to 

 

 
  
 - 29 -

 calculate the setoff under this Paragraph. AVX also reserves whatever rights it may have under the federal
Freedom of Information Act and the state Public Records Act to obtain cost information from Plaintiffs. 

Interest and Penalties for Late Payments 
 21. If any payment required by Paragraphs 7-13 of this Decree is not made by the date specified in those Paragraphs, AVX shall be liable to Plaintiffs for interest on the overdue
amount(s), from the time payment was due until full payment is made, at the higher of (a) the rate established by the Department of the Treasury under 31 U.S.C. § 3717 and 4 C.F.R. § 102.13, or (b) ten percent per annum.

 22. A. If any payment required by Paragraph 6 of this Decree is not made by the date specified therein, or
required by Paragraph 8, 10, or 11 of this Decree is not made by the date specified in Paragraph 7, AVX shall pay stipulated penalties in the following amounts for each day or each ana every violation of said requirements: 

Days of Delay Penalty Per Violation Per Day 
 1-14 $ 5,000/day 
 15-30 $ 10,000/day 

Beyond 30 Days $ 15,000/day 
 If any payment required by Paragraphs 9, 12, or 13 of this Decree is not made by the date specified in those Paragraphs, AVX shall pay stipulated penalties in the following 

 

 
  
 B.

 30 
 amounts for each day of each and every violation of said requirements: 
 Beyond 30 Days 
 C. AVX shall make any such
stipulated penalties 
 payments: (1) to EPA, for any payment overdue under Paragraph 8; 

(2) 90% to EPA and 10% to the Commonwealth for any payment overdue under Paragraph 10; (3) to the United States, for
any payment overdue under Paragraph 12; (4) fifty percent (50%) to the United States and fifty (50%) percent to the Commonwealth, for any payment overdue under Paragraphs 6 or 11; and (5) to the Commonwealth, for any payment
overdue under Paragraphs 9 and 13. 
 23. Stipulated penalties due to the United States under this Decree shall
be paid by certified or bank check made payable to “Treasurer of the United States” and shall be sent to: 
 Chief, Civil Division 
 United States
Attorneys’ Office 
 1107 J.W. McCormack Post Office/Courthouse 

Boston, MA 02109 
 Stipulated penalties due to EPA or the Commonwealth under this Decree shall be paid in the manner described in Paragraphs 8 and 

9, respectively. 
 Interest and stipulated penalties shall accrue from the due date of the payment regardless of whether Plaintiffs have notified AVX of the overdue payment. AVX shall pay any stipulated
penalties that have accrued within fifteen (15) days 

 

 
  

	 24.
	  
	 

 —31 - 
 after receipt of a demand by either
Plaintiff for payment. Such demand shall be sent by certified mail or overnight courier to: Chief Financial Officer, AVX Corporation, 750 Lexington Avenue, New York, NY, 10022-1208. A copy of any demand shall be sent to counsel for AVX to: Mary K.
Ryan, Nutter, McClennen & Fish, One International Place, Boston, Massachusetts, 02110-2699. Interest under Paragraph 23 and stipulated penalties under Paragraph 24 do not preclude Plaintiffs from seeking any other remedies or sanctions that
may be available to them on account of AVX’s failure to comply with the terms of the Decree. 
 Contribution
Protection 
 25. Upon court approval of this settlement, AVX shall have the benefits of Section 113(f) of
CERCLA, 42 U.S.C. § 9613(f), Section 4 of Mass. Gen. Laws c. 231B, and any other applicable law limiting its liability to persons not a party to this Consent Decree or affording it rights of contribution or other rights to recover costs or
damages relating to the New Bedford Harbor Site from such persons. 
 Retention of Response Authority 

26. The Decree shall not be construed to limit the authority of the United States or the Commonwealth to take any and all
response actions relating to the New Bedford Harbor Site authorized by federal or state law. 
 Compliance with
Other Laws 
 Penalty Per Violation Per Day $ 500/day 

$ 1,000/day 
  

Days of Delay 
  

1-14 
  

15-30 
 $ 1,500/day 
 The Decree shall not be construed to
in any way 

 

 
  
 1.

 32 
 relieve AVX or any other person or entity from the obligation to comply with any federal, state or local law. 

 
 Retention of Jurisdiction 

30. The Court shall retain jurisdiction of this matter between Plaintiffs and AVX for the purpose of entering such further
orders, direction, or relief as may be appropriate for the construction, implementation, or enforcement of this Decree. 
 Public Comment 
 31. The Decree shall be subject to
a 30-day public comment period consistent with Section 122(d)(2) of CERCLA, 42 U.S.C. § 9622(d)(2), and 28 C.F.R. § 50.7. The United States reserves the right, in consultation with the Commonwealth, to withdraw its consent to the
Decree if comments received disclose facts or considerations which show to the United States that the Decree is inappropriate, improper or inadequate. AVX consents to the entry of the Decree without further notice. 

THE FOREGOING Consent Decree among plaintiffs the United States of America and the Commonwealth of Massachusetts and
defendant AVX Corporation in United States v. AVX Corporation. Civ. No. 83- 3882-Y (D. Mass.), is hereby APPROVED AND ENTERED THIS 3rd DAY 
 1991 
 G 

United States District Judge District of Massachusetts 

 

 
  
 33

 Consent Decree with AVX Corporation in United States v. AVX Corporation. Civ. No. 83-3882-Y (D. Mass.)

 Ellen M. Mahan — 
 William D. Brighton Bruce C. Buckheit Senior Counsel 
 FOR THE UNITED STATES OF AMERICA 
 Assistant
Attorney General Environment and Natural Resources 
 Division U.S. Department of Justice Washington, D.C. 20530

 Environmental Enforcement Section Environment and Natural Resources Division U.S. Department of Justice
Washington, D.C. 20530 

 

 
  
 - 34 -

 Consent Decree with AVX Corporation in United States v. AVX Corporation. Civ. No. 83-3882-Y (D. Mass.)

  
 Edward E. Reich 

Acting Assistant Administrator for Enforcement U.S. Environmental Protection Agency 401 M Street, SW Washington, D.C.
20460 
 Julie Belaga Regional Administrator ‘U.S. Environmental Protection Agency, Region I One Congress
Street Boston, Massachusetts 022 03 

 

 
  
 - 35 -

 Consent Decree with AVX Corporation in United States v. AVX Corporation. Civ. No. 83-3882-Y (D. Mass.)

 FOR THE FEDERAL NATURAL RESOURCE TRUSTEES 

John A. Knauss Under Secretary for Oceans Administrator, National Oceanic and Atmospheric Administration Department of
Commerce Washington, D.C. 20230 
 Anton P. Giedt 

Thomas A. Campbell 
 General Counsel National Oceanic and Atmospheric Administration 
 Attorned/Advisor Office of General Counsel National Oceanic and Atmospheric Administration 

 

 
  
 - 36 - 
 Consent Decree with AVX Corporation in
United States v. AVX Corporation. Civ. No. 83-3882-Y (D. Mass.) 
 FOR THE COMMONWEALTH OF MASSACHUSETTS

 Matthew T. Brock Assistant Attorney General Environmental Protection Division One Ashburton Place Boston,
Massachusetts 02108 
 Department of Environmental Protection Commonwealth of Massachusetts One Winter Street
Boston, Massachusetts 02108 
 FOR THE COMMONWEALTH OF MASSACHUSETTS NATURAL RESOURCE TRUSTEE 

Secretary Executive Office of Affairs 
 Environmental 
 Commonwealth of Massachusetts 100
Cambridge Street, 20th Floor Boston, Massachusetts 02202 

 

 
  
 - 37 -

 Consent Decree with AVX Corporation in United States v. AVX Corporation, Civ. No. 83-3882-Y (D. Mass.)

 Mary K. Ryan Nutter, McClennen & Fish One International Place Boston, Massachusetts 02110 

FOR AVX CORPORATION 
 Marshall D. Butler Chairman, Chief Executive Officer 
 Daniel J. Gleason Nutter, McClennen & Fish 

 

 
  
 AVX
CORPORATION, 
 Respondent 
 Proceeding Under Sections 104, 106(a), 107 and 122 of the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 

42 U.S.C. §§ 9604, 9606(a), 9607 and 9622 

U.S. EPA Region 1 
 CERCLA Docket No. 01-2010-0017 

ADMINISTRATIVE SETTLEMENT AGREEMENT AND ORDER ON CONSENT FOR NON-TIME CRITICAL REMOVAL ACTION 

IN THE MATTER OF: Aerovox 
 New Bedford, Bristol County, Massachusetts 

 

 
  
 ee.
“Site” shall mean the Aerovox property, encompassing approximately 10.3 acres, located at 740 Belleville Avenue, New Bedford, Bristol County, Massachusetts as depicted on the map attached hereto as Appendix C. and further described below:

 The northern boundary of the Site is the existing Aerovox northern property line, which is located
approximately in the middle of the alley (Graham Street) between the Aerovox building and the Precix building as shown on Appendix C. This northern Site boundary line continues in a westerly direction until it intersects with the western property
line, and in an easterly direction until it intersects with the mean high water (“MHW”) line along the Acushnet River. 
 In its northeast corner, the Site boundary line follows the MHW line southward until it reaches the landward face of the stone seawall. The Site boundary line then continues easterly along
the landward face of the stone seawall, then turning southerly at the northeast comer of the stone seawall. 

The Site boundary line then continues southerly for approximately ten feet until it is due east of the northeastern corner
of the sheet pile wall. The Site boundary line then continues due west approximately ten feet until it intersects the northeastern corner of the sheet pile wall. The stone seawall and the land area on the river side of the boundary line in the
northeast corner is part of the New Bedford Harbor Superfund Site, and is NOT part of the Site. 
 The eastern
boundary of the Site is the existing sheet pile wall (inclusive of such wall) running generally in a north-south orientation along the Acushnet River. The land area on the eastern (i.e., river) side of this sheet pile wall is part of the New Bedford
Harbor Superfund Site, and is NOT part of the Site. 
 The southern boundary of the Site is the existing Aerovox
southern property line, which is located approximately in the middle of Hadley Street as shown on Appendix C. This southern Site boundary line continues in a westerly direction until it intersects with the western property line, and in an easterly
direction until it intersects with the southeastern corner boundary line described below. 
 In its southeast
corner, the Site boundary line extends from the southwestern terminus of the sheet pile wall due south approximately 10 feet until it intersects with the southern Site boundary line. 

The western boundary of the Site is the existing Aerovox western property line. 

The Site referred to herein is physically separate and distinct from the New Bedford Harbor Superfund Site. 

 

 
  

 

 
  
 APPENDIX
C.l. 
 , 201_ 
 Regional Financial Management Officer U.S. Environmental Protection Agency Region 1, New England 5 Post Office Square. Suite 100 Boston, Massachusetts 02109 

Re: In the Matter of New Bedford Harbor Superfund Site, Upper and Lower Harbor Operable Unit; AVX Corporation, Respondent;
Proceeding Under Section 106(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. § 9606(a)) 
 Dear Sir/Madam: 
 I am the Chief Financial Officer
of AVX Corporation, 1 AVX Boulevard, Fountain Inn, SC 29644 (the “Company”). This letter is in support of the Company’s use of a financial test to demonstrate financial assurance for the obligations of the Company under that certain

 Supplemental Consent Decree (the “Consent Decree”), dated , Docket No. 

between the Company and the United States and the Commonwealth of Massachusetts 

entered pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, U.S.C.
§ 9601 et seq. (“CERCLA”). This letter confirms the Company’s satisfaction of certain financial criteria, as set forth more fully below, that makes the Company eligible to utilize the financial test as financial assurance under
the Consent Decree. 
 1. The dollar amount of financial assurance required by Paragraph 11 of the Consent Decree
and covered by the Company’s use of the financial test is $232,900,000. 
 2. The Company is a signatory to
the following CERCLA settlements (other than the Consent Decree) under which the Company is providing financial assurance to EPA through the use of a financial test. The total dollar amount of such financial assurance covered by a financial test is
equal, in the aggregate, to $5,380,000, and is shown for each such settlement as follows: 
 Olean Superfund
Site: $380,000; and 
 Sullivan’s Ledge Superfund Site, Operable Unit 2: $5,000,000. 

3. The Company is the owner and/or operator of the following facilities for which the Company has demonstrated financial
assurance through a financial test, including but not limited to hazardous waste Treatment, Storage, and Disposal (“TSD”) facilities under 40 CFR parts 264 and 265, Municipal Solid Waste Landfill (“MSWLF”) facilities under 40 CFR
part 258, Underground Injection Control (“UIC”) facilities under 40 CFR part 144, Underground Storage Tank (“UST”) facilities under 40 CFR part 280, and Polychlorinated Biphenyl 

4. 

 

 
  
 Regional
Financial Management Officer U.S. Environmental Protection Agency Region 1, New England 
 , 201_ 

Page 2 
 (“PCB”) storage facilities under 40 CFR part 761. The total dollar amount of such financial assurance covered by a financial test is equal, in the aggregate, to $0.00, and is
shown for each such facility as follows: NONE. 
 1. The Company guarantees the CERCLA settlement obligations
and/or the MSWLF, TSD, UIC, UST, PCB, and/or other facility obligations of the following guaranteed parties. The total dollar amount of such CERCLA settlement and regulated facility obligations so guaranteed is equal, in the aggregate, to $0.00, and
is shown for each such settlement and/or facility as follows: NONE. 
 2. The Company is required to file a Form
10K with the Securities and Exchange Commission (“SEC”) for the Company’s latest fiscal year. 

3. The Company’s fiscal year ends on March 31. I hereby certify that the figures for the following items marked
with an asterisk are derived from the Company’s independently audited, year-end financial statements for its latest completed fiscal year, ended March 31, 2012, and further certify as follows: 

($ in millions) 
 A.The aggregate total of the dollar amounts shown in Paragraphs 1 through 4 above equals: 
 B.Company’s total liabilities equal [if any portion of the aggregate dollar amount from line A is included in total liabilities, you may deduct the amount of that portion from this
line and add that amount to lines C and D]: 
 C. Company’s tangible net worth
[2,120.8*—162.7*—78.2*] 
 $1,879.9* 

D.Company’s net worth equals: 
 E.Company’s current assets equal: 

F.Company’s current liabilities equal: 
 G. Company’s net working capital [1,727.1*—297.1*] equals: $1,430.0* 
 H.Sum of Company’s net income plus depreciation, depletion, and amortization [152.8* + 46.9*] equals: 
 I. 

 

 
  
 Regional
Financial Management Officer U.S. Environmental Protection Agency Region 1, New England 
 , 201_ 

Page 3 
 J. Company’s total assets in the U.S. equal (required only if less 
 than 90% of Company’s assets are located in the U.S.): $1,768.9 
 J. Is line C at least $10 million (Yes/No): Yes 

K. Is line C at least 6 times line A (Yes/No): Yes 

L. Is line G at least 6 times line A (Yes/No): Yes 

M. Are at least 90% of Company’s assets located in the U.S. 

(Yes/No): No 
 If “No,” complete line N. 
 N. Is line I
at least 6 times line A (Yes/No): Yes 
 O. Is line B divided by line D less than 2.0 (Yes/No): Yes 

P. Is line H divided by line B greater than 0.1 (Yes/No): Yes 

Q. Is line E divided by line F greater than 1.5 (Yes/No): Yes 

I hereby certify that, to the best of my knowledge after thorough investigation, the information contained in this letter
is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations. 

Very truly yours, 
 Kurt P. Cummings 
 Chief Financial Officer

 Vice President, Treasurer and Secretary 

[NOTARY BLOCK] 
 $238.3 
 $347.3* 

equals: 
 $2,120.8* 
 $1,727.1* 

$297.1* 
 $199.7* 
 Kurt P. Cummings Chief Financial Officer
Vice President, Treasurer 
 , 201_ 

 

 
  
 Regional
Financial Management Officer U.S. Environmental Protection Agency Region 1, New England 
 , 201_ 

Page 4 
 cc: 
 Mr. Curt Spalding Regional Administrator
U.S. Environmental Protection Agency Region 1, New England 5 Post Office Square. Suite 100 Boston, Massachusetts 02109 
 Chief Financial Officer 
 MassDEP 

One Winter Street 
 Boston, Massachusetts 02108 
 2131504.3 

 

 
  
 United
States Environmental Protection 
 Agency 

CERCLA Financial Assurance Financial Test: Sample CFO Letter (for Test Alternative 1) 

[PRP Letterhead] 
 [Address Block] [Date] 
 Dear [ ]: 

I am the chief financial officer of [name and address of PRP] (the “Company”). This letter is in support of the
Company’s use of a financial test to demonstrate financial assurance for the obligations of the Company under that certain [Consent Decree (the 
 “Consent Decree”)], dated , , Docket No. [ ], between the 
 PRP and EPA, entered pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9607 et seq. (“CERCLA”). This
letter confirms the Company’s satisfaction of certain financial criteria, as set forth more fully below, that makes the Company eligible to utilize the financial test as financial assurance under the Consent Decree. 

[Fill out the following five paragraphs regarding CERCLA settlements, RCRA facilities, TSCA facilities, SDWA facilities,
and associated financial assurance requirements. If the Company has no CERCLA settlement or RCRA/TSCA/SDWA facility obligations that belong in a particular paragraph, write “None “ in the space indicated. For each settlement and facility,
include its settlement Docket No. or EPA Identification Number, as the case may be, and the financial assurance dollar amount associated with such settlement and or facility. ] 
 1. The dollar amount of financial assurance required by Paragraph [ ] of the 
 Consent Decree and covered by the Company’s use of the financial test is 
 [$ ]• 
 2. The Company is a signatory to the
following CERCLA settlements (other than the Consent Decree) under which the Company is providing financial assurance to EPA through the use of a financial test. The total dollar amount of such financial assurance 

covered by a financial test is equal, in the aggregate, to [$ ], and is shown for each 

such settlement as follows: 
 3. The Company is the owner and/or operator of the following facilities for which the Company has demonstrated financial assurance through a financial test, including but not limited to
hazardous waste Treatment, Storage, and Disposal (“TSD”) facilities under 

 

 
  
 40 CFR
parts 264 and 265, Municipal Solid Waste Landfill (“MSWLF”) facilities under 40 CFR part 258, Underground Injection Control (“UIC”) facilities under 40 CFR part 144, Underground Storage Tank (“UST”) facilities under 40
CFR part 280, and Polychlorinated Biphenyl (“PCB”) storage facilities under 40 CFR part 761. The total dollar amount of such financial assurance covered by a financial test is equal, in the aggregate, to [$ ], and is shown for each such
facility as follows: 
 4. The Company guarantees the CERCLA settlement obligations and/or the MSWLF, TSD, UIC,
UST, PCB, and/or other facility obligations of the following guaranteed parties. The total dollar amount of such CERCLA settlement and regulated 
 facility obligations so guaranteed is equal, in the aggregate, to [$ ], and is shown for 
 each such settlement and/or facility as follows: 

5. The Company [insert “is required” or “is not required”] to file a Form 10K with the Securities and
Exchange Commission (“SEC”) for the Company’s latest fiscal year. 
 6. The Company’s fiscal
year ends on [month, day], I hereby certify that the figures for the following items marked with an asterisk are derived from the Company’s independently audited, year-end financial statements for its latest completed fiscal year, ended [date],
and further certify as follows: 
 J. Is line C at least $10 million (Yes/No): Yes 

K. Is line C at least 6 times line A (Yes/No): Yes 

L. Is line G at least 6 times line A (Yes/No): Yes 

M. Are at least 90% of Company’s assets located in the U.S. 

(Yes/No): No 
 If “No,” complete line N. 
 N. Is line I
at least 6 times line A (Yes/No): Yes 
 O. Is line B divided by line D less than 2.0 (Yes/No): Yes 

P. Is line H divided by line B greater than 0.1 (Yes/No): Yes 

Q. Is line E divided by line F greater than 1.5 (Yes/No): Yes 

J. Is line C at least $10 million (Yes/No): [ 

 

 
  
 J. Is line
C at least $10 million (Yes/No): Yes 
 K. Is line C at least 6 times line A (Yes/No): Yes 

L. Is line G at least 6 times line A (Yes/No): Yes 

M. Are at least 90% of Company’s assets located in the U.S. 

(Yes/No): No 
 If “No,” complete line N. 
 N. Is line I
at least 6 times line A (Yes/No): Yes 
 O. Is line B divided by line D less than 2.0 (Yes/No): Yes 

P. Is line H divided by line B greater than 0.1 (Yes/No): Yes 

Q. Is line E divided by line F greater than 1.5 (Yes/No): Yes 

I hereby certify that, to the best of my knowledge after thorough investigation, the information contained in this letter
is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations. 

[Signature] 
 [Name] 
 [Title] 

[Date] 
 [NOTARY BLOCK] 
 Case l:83-cv-03882-WGY Document
2617-4 Filed 10/10/12 Page 7 of 12 

 

 
  
  

CERCLA Financial Assurance Financial Test: 

 
 Sample CPA Report (for Test Alternative 1)

 [CPA Letterhead] 
 Independent Accountants’ Report on Applying Agreed-Upon Procedures 
 To the Board of Directors and Management of [ ]: 

We have performed the procedures outlined below, which were agreed to by [PRP] (the “Company”), to assist the
Company in confirming selected financial data contained in the 
 attached letter from [ ], the Company’s
Chief Financial Officer, dated 
 [ ], to the Regional Administrator, United States Environmental Protection

 Agency, Region [ ] (the “CFO Letter”). We have been advised by the Company that 

the CFO Letter has been or will be submitted to the United States Environmental Protection Agency (“EPA”) in
support of the Company’s use of a financial test to demonstrate financial assurance for the Company’s obligations under that certain Consent 
 Decree (the “Consent Decree”), dated , , Docket No. [ ], 
 between the Company and EPA. The procedures outlined below were performed solely to assist the Company in complying with the financial assurance requirements contained in the Consent
Decree. 
 This agreed-upon procedures engagement was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of
the procedures described below either for the purpose for which this report has been requested or for any other purpose. 
 The procedures we performed and our associated findings are as follows: 
 1. We confirm that we have audited the consolidated financial statements of the Company as of and for the fiscal year ended [December 31, 200 ] in accordance with U.S. generally accepted
accounting principles (such audited, consolidated financial 
 statements, the “Audited Financials”).
Our report dated [ ], with respect 
 thereto, is included in the Company’s [200 ] Annual Report on Form
10-K. 
 2. Using data set forth in the Audited Financials, we calculated the amount of the 

Company’s total liabilities as of [December 31, 200 ] as [$ ], by [adding 

total current liabilities of [$ ] to total non-current liabilities of 

[$ ]]. We compared the amount of the Company’s total liabilities as so 

calculated with the amount set forth in Line 6(B) of the CFO Letter (“Total Liabilities”), and found such
amounts to be in agreement. 
 1. Using data set forth in the Audited Financials, we calculated the amount of the

 Company’s tangible net worth as of [December 31, 200_] as [$ ], by 

[subtracting the amount of net intangible assets of [$ ] from the amount of 

total stockholders’ equity of [$ ]]. We compared the amount of the 

Company’s tangible net worth as so calculated with the amount set forth in Line 6(C) of the CFO Letter
(“Tangible Net Worth”), and found such amounts to be in agreement. 
 2. We compared the amount of the
Company’s net worth as of [December 31, 200 ], as defined and set forth in the Audited Financials and as calculated therein as 
 [$ ], with the amount set forth in Line 6(D) of the CFO Letter (“Net Worth”), 
 and found such amounts to be in agreement. 

 

 
  
 3. We
compared the amount of the Company’s total current assets as of [December 31, 200 ], as defined and set forth in the Audited Financials and as calculated therein as 
 [$ ], with the amount set forth in Line 6(E) of the CFO Letter (“Current 
 Assets”), and found such amounts to be in agreement. 
 4. We compared the amount of the Company’s total current liabilities as of [December 31, 200 ], as defined and set forth in the Audited Financials and as calculated 

therein as [$ ], with the amount set forth in Line 6(F) of the CFO Letter 

(“Current Liabilities”), and found such amounts to be in agreement. 

5. Using data set forth in the Audited Financials, we calculated the amount of the 

Company’s net working capital as of [December 31, 200_] as [$ ], by 

[subtracting total current liabilities of [$ ] from total current assets of 

[$ ]]. We compared the amount of the Company’s net working capital as so 

calculated with the amount set forth in Line 6(G) of the CFO Letter (“Net Working Capital”), and found such
amounts to be in agreement. 
 6. Using data set forth in the Audited Financials, we calculated the sum of the
Company’s net income plus depreciation, depletion, and amortization as of [December 
 31, 200 ] as [$ ], by
[adding depreciation, depletion, and amortization of 
 property and intangibles of [$ ] to net income of [$ ]].
We 
 compared the sum of the Company’s net income plus depreciation, depletion, and amortization as so
calculated with the amount set forth in Line 6(H) of the CFO Letter (“Net Income Plus Depreciation, Depletion, and Amortization”), and found such amounts to be in agreement. 

7. We compared the amount of the Company’s total assets located in the United 

States as of [December 31, 200 ] of [$ ] (as such amount was derived by 

the Company from its underlying accounting records that support the Audited Financials and notified to us in writing) with
the amount set forth in Line 6(1) of the CFO Letter, and found such amounts to be in agreement. OR We calculated the percentage of Company assets located in the United States as of [December 31, 200 ] by dividing the amount of 

the Company’s total assets located in the United States of [$ ] (as such 

amount was derived by the Company from its underlying accounting records that support the Audited Financials and notified
to us in writing) by the amount of the Company’s total assets as defined and set forth in the Audited Financials, and found such percentage to be greater than 90%. 
 Our calculation of the amount of the Company s tangible net worth (as set forth in Line 3 above) is [greater to or equal than] [less than] $10 million. 

 

 
  
 8. The
dollar amount identified in Line 6(A) of the CFO Letter is hereinafter referred to as the “Financial Assurance Amount.” Our calculation of the amount of the Company’s tangible net worth (as set forth in Line 3 above) is [greater to or
equal than] [less than] an amount calculated as six times the Financial Assurance Amount. 
 9. Our calculation
of the amount of the Company’s net working capital (as set forth in Line 7 above) is [greater to or equal than] [less than] an amount calculated as six times the Financial Assurance Amount. 

10. [Complete Line 13 only if less than 90% of Company’s assets are located in the United States] Our calculation of
the amount of the Company’s total assets located in the United States (as set forth in Line 9 above) is [greater to or equal than] [less than] an amount calculated as six times the Financial Assurance Amount. 

11. Our calculation of the amount of the Company’s total liabilities (as set forth in Line 2 above) divided by our
calculation of the amount of the Company’s net worth (as set forth in Line 4 above) is [greater than] [less than] 2.0. 
 12. Our calculation of the sum of the Company’s net income plus depreciation, depletion, and amortization (as set forth in Line 8 above) divided by our calculation of the amount of
the Company’s total liabilities (as set forth in Line 2 above) is [greater than] [less than] 0.1. 
 13. Our
calculation of the amount of the Company’s total current assets (as set forth in Line 5 above) divided by our calculation of the amount of the Company’s total current liabilities (as set forth in Line 6 above) is [greater than] [less than]
1.5. 
 The foregoing agreed-upon procedures do not constitute an audit of the Company’s financial
statements or any part thereof, the objective of which is the expression of 

 

 
  
 opinion on
the financial statements or a part thereof. Accordingly, we do not express such an opinion. Had be performed additional procedures, other matters might have come to our attention that would have been reported to you. 

This report is intended solely for the information and use of the Board of Directors and Management of the Company and is
not intended to be and should not be used by anyone other than these specified parties; provided, however, that we acknowledge and agree that the Company may provide this report to the United States Environmental Protection Agency in support of the
Company’s financial assurance demonstration under the Consent Decree. 
 [Signature] 

[Name] 
 [Date] 

 

 
  
 APPENDIX
C.4. 
 ,201 
 Regional Financial Management Officer U.S. Environmental Protection Agency Region 1, New England 5 Post Office Square. Suite 100 Boston, Massachusetts 02109 

Re: In the Matter of New Bedford Harbor Superfund Site, Upper and Lower Harbor Operable Unit; AVX Corporation, Respondent;
Proceeding Under Section 106(a) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. § 9606(a)) 
 Dear Sir/Madam: 
 I hereby certify, based on AVX
Corporation’s [insert reference to the most recent financial statements] and based on a reasonable inquiry, that I am not aware of any transactions or events likely to arise between today and the end of the AVX’s current fiscal quarter
ending on [insert date] that will materially impair AVX’s ability to make the payments on the outstanding balance due under Paragraph 7 of the Supplemental Consent Decree. 
 I certify that the information contained in this letter is true, accurate and complete. I am aware that there are significant penalties for submitting false information including the
possibility of fine and imprisonment for knowing violations. 
 Very truly yours, 

Kurt P. Cummings 
 Chief Financial Officer 
 Vice President, Treasurer
and Secretary 
 ,201 
 cc: 
 Mr. Curt Spalding Regional Administrator
U.S. Environmental Protection Agency Region 1, New England 5 Post Office Square. Suite 100 Boston, Massachusetts 02109 
 Chief Financial Officer 
 MassDEP 

One Winter Street 
 Boston, Massachusetts 02108 
 2137529.1EX-4.1

 Exhibit 4.1 

 
  

 
 AMBEV S.A. 

AND 

THE BANK OF NEW YORK MELLON 
 As Depositary 
 AND 

OWNERS AND HOLDERS OF 
 AMERICAN DEPOSITARY SHARES 
 Deposit Agreement 

Dated as of             , 2013 

 
  

 

 TABLE OF CONTENTS 

 

							
	ARTICLE 1. DEFINITIONS.	  	 	1	  
			
	 SECTION 1.01.
	    	AMERICAN DEPOSITARY SHARES.	  	 	1	  
	 SECTION 1.02.
	    	BUSINESS DAY.	  	 	2	  
	 SECTION 1.03.
	    	COMMISSION.	  	 	2	  
	 SECTION 1.04.
	    	COMPANY.	  	 	2	  
	 SECTION 1.05.
	    	CONSULTATION.	  	 	2	  
	 SECTION 1.06.
	    	CUSTODIAN.	  	 	2	  
	 SECTION 1.07.
	    	DEPOSIT AGREEMENT.	  	 	2	  
	 SECTION 1.08.
	    	DEPOSITARY; CORPORATE TRUST OFFICE.	  	 	2	  
	 SECTION 1.09.
	    	DEPOSITED SECURITIES.	  	 	3	  
	 SECTION 1.10.
	    	DOLLARS; REAL.	  	 	3	  
	 SECTION 1.11.
	    	FOREIGN CURRENCY.	  	 	3	  
	 SECTION 1.12.
	    	HOLDER.	  	 	3	  
	 SECTION 1.13.
	    	OWNER.	  	 	3	  
	 SECTION 1.14.
	    	RECEIPTS.	  	 	3	  
	 SECTION 1.15.
	    	REGISTRAR.	  	 	3	  
	 SECTION 1.16.
	    	RESTRICTED RECEIPTS.	  	 	4	  
	 SECTION 1.17.
	    	SECURITIES ACT OF 1933.	  	 	4	  
	 SECTION 1.18.
	    	SHARE REGISTRAR.	  	 	4	  
	 SECTION 1.19.
	    	SHARES.	  	 	4	  
		
	ARTICLE 2. FORM OF RECEIPTS, DEPOSIT OF SHARES, EXECUTION AND DELIVERY, TRANSFER AND SURRENDER OF RECEIPTS.	  	 	4	  
			
	 SECTION 2.01.
	    	FORM AND TRANSFERABILITY OF RECEIPTS.	  	 	4	  
	 SECTION 2.02.
	    	DEPOSIT OF SHARES.	  	 	6	  
	 SECTION 2.03.
	    	EXECUTION AND DELIVERY OF RECEIPTS.	  	 	7	  
	 SECTION 2.04.
	    	TRANSFER OF RECEIPTS; COMBINATION AND SPLIT-UP OF
RECEIPTS.	  	 	7	  
	 SECTION 2.05.
	    	SURRENDER OF RECEIPTS AND WITHDRAWAL OF SHARES.	  	 	8	  
	 SECTION 2.06.
	    	LIMITATIONS ON EXECUTION AND DELIVERY, TRANSFER AND
SURRENDER OF RECEIPTS.	  	 	9	  
	 SECTION 2.07.
	    	LOST RECEIPTS, ETC.	  	 	10	  
	 SECTION 2.08.
	    	CANCELLATION AND DESTRUCTION OF SURRENDERED RECEIPTS.	  	 	10	  
	 SECTION 2.09.
	    	PRE-RELEASE OF RECEIPTS.	  	 	10	  
	 SECTION 2.10.
	    	NO LIABILITY AND RESPONSIBILITY.	  	 	11	  
	 SECTION 2.11.
	    	MAINTENANCE OF RECORDS.	  	 	12	  
	 SECTION 2.12.
	    	UNCERTIFICATED AMERICAN DEPOSITARY SHARES; DTC DIRECT REGISTRATION
SYSTEM.	  	 	12	  
		
	ARTICLE 3. CERTAIN OBLIGATIONS OF OWNERS OF RECEIPTS.	  	 	14	  
			
	 SECTION 3.01.
	    	PROVIDING PROOFS, CERTIFICATES AND OTHER INFORMATION.	  	 	14	  
	 SECTION 3.02.
	    	LIABILITY OF OWNER FOR TAXES.	  	 	14	  
	 SECTION 3.03.
	    	WARRANTIES ON DEPOSIT OF SHARES.	  	 	15	  
	 SECTION 3.04.
	    	INFORMATION REQUESTS.	  	 	15	  
		
	ARTICLE 4. THE DEPOSITED SECURITIES.	  	 	16	  
			
	 SECTION 4.01.
	    	CASH DISTRIBUTIONS.	  	 	16	  
	 SECTION 4.02.
	    	DISTRIBUTIONS OTHER THAN CASH, SHARES OR RIGHTS.	  	 	16	  
	 SECTION 4.03.
	    	DISTRIBUTIONS IN SHARES.	  	 	17	  
	 SECTION 4.04.
	    	RIGHTS DISTRIBUTIONS.	  	 	18	  
	 SECTION 4.05.
	    	CONVERSION OF FOREIGN CURRENCY.	  	 	20	  

							
	 SECTION 4.06.
	    	FIXING OF RECORD DATE.	  	 	21	  
	 SECTION 4.07.
	    	VOTING OF DEPOSITED SECURITIES.	  	 	21	  
	 SECTION 4.08.
	    	CHANGES AFFECTING DEPOSITED SECURITIES.	  	 	23	  
	 SECTION 4.09.
	    	REPORTS.	  	 	24	  
	 SECTION 4.10.
	    	LISTS OF OWNERS.	  	 	24	  
	 SECTION 4.11.
	    	WITHHOLDING.	  	 	24	  
		
	 ARTICLE 5. THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY.
	  	 	25	  
			
	 SECTION 5.01.
	    	MAINTENANCE OF OFFICE AND TRANSFER BOOKS BY THE
DEPOSITARY.	  	 	25	  
	 SECTION 5.02.
	    	PREVENTION OR DELAY IN PERFORMANCE BY THE DEPOSITARY
OR THE COMPANY.	  	 	26	  
	 SECTION 5.03.
	    	OBLIGATIONS OF THE DEPOSITARY, THE CUSTODIAN AND THE
COMPANY.	  	 	26	  
	 SECTION 5.04.
	    	RESIGNATION AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF
SUCCESSOR DEPOSITARY.	  	 	28	  
	 SECTION 5.05.
	    	THE CUSTODIAN.	  	 	29	  
	 SECTION 5.06.
	    	NOTICES AND REPORTS.	  	 	29	  
	 SECTION 5.07.
	    	ISSUANCE OR DEPOSIT OF ADDITIONAL SHARES, ETC.	  	 	30	  
	 SECTION 5.08.
	    	INDEMNIFICATION.	  	 	31	  
	 SECTION 5.09.
	    	CHARGES OF DEPOSITARY.	  	 	32	  
	 SECTION 5.10.
	    	RETENTION OF DEPOSITARY DOCUMENTS.	  	 	34	  
	 SECTION 5.11.
	    	EXCLUSIVITY.	  	 	34	  
		
	 ARTICLE 6. AMENDMENT AND TERMINATION.
	  	 	34	  
			
	 SECTION 6.01.
	    	AMENDMENT.	  	 	34	  
	 SECTION 6.02.
	    	TERMINATION.	  	 	34	  
		
	 ARTICLE 7. MISCELLANEOUS.
	  	 	36	  
			
	 SECTION 7.01.
	    	COUNTERPARTS.	  	 	36	  
	 SECTION 7.02.
	    	NO THIRD PARTY BENEFICIARIES.	  	 	36	  
	 SECTION 7.03.
	    	SEVERABILITY.	  	 	36	  
	 SECTION 7.04.
	    	OWNERS AND HOLDERS AS PARTIES; BINDING EFFECT.	  	 	36	  
	 SECTION 7.05.
	    	NOTICES.	  	 	36	  
	 SECTION 7.06.
	    	GOVERNING LAW.	  	 	37	  
	 SECTION 7.07.
	    	COMPLIANCE WITH U.S. SECURITIES LAWS.	  	 	37	  
	 SECTION 7.08.
	    	ASSIGNMENT.	  	 	37	  
	 SECTION 7.09.
	    	EFFECTIVE DATE.	  	 	38	  

  
 ii 

 DEPOSIT AGREEMENT 

DEPOSIT AGREEMENT dated as of             , 2013 among AMBEV S.A., a
company incorporated under the laws of Brazil (herein called the Company), THE BANK OF NEW YORK MELLON, a New York banking corporation (herein called the Depositary), and all Owners and Holders (each as hereinafter defined) from time to time of
American Depositary Shares issued hereunder. 
 W I T N E S S E T H: 

WHEREAS, the Company desires to provide, as hereinafter set forth in this Deposit Agreement, for the deposit of Shares (as
hereinafter defined) of the Company from time to time with the Depositary or with the Custodian (as hereinafter defined) as agent of the Depositary for the purposes set forth in this Deposit Agreement, for the creation of American Depositary Shares
representing the Shares so deposited, in specified circumstances, and for the execution and delivery of American Depositary Receipts evidencing the American Depositary Shares; and 

WHEREAS, the American Depositary Receipts are to be substantially in the form of Exhibit A annexed hereto, with appropriate
insertions, modifications and omissions, as hereinafter provided in this Deposit Agreement. 
 NOW, THEREFORE, in
consideration of the premises, the parties hereto hereby agree as follows: 
  

	ARTICLE 1.	DEFINITIONS. 

 The
following definitions shall for all purposes, unless otherwise clearly indicated, apply to the respective terms used in this Deposit Agreement: 
 SECTION 1.01. American Depositary Shares. 
 The term “American
Depositary Shares” shall mean the securities created hereby representing the interests in the Deposited Securities evidenced by the Receipts issued hereunder and all rights of ownership associated therewith. Each American Depositary Share shall
represent the number of Shares specified in Exhibit A annexed hereto, until there shall occur a distribution upon Deposited Securities covered by Section 4.03 or a change or other event with respect to Deposited Securities covered by
Section 4.08 with respect to which additional Receipts are not executed and delivered, and thereafter American Depositary Shares shall evidence the type and amount of Shares or Deposited Securities specified in such Sections. 

 SECTION 1.02. Business Day. 

The term “Business Day” shall mean any day in which both the banks in Brazil and the banks in New York, New York are open for
business. 
 SECTION 1.03. Commission. 
 The term “Commission” shall mean the Securities and Exchange Commission of the United States or any successor governmental agency in the United States. 

SECTION 1.04. Company. 
 The term “Company” shall mean Ambev S.A., a company incorporated under the laws of Brazil, and its successors. 
 SECTION 1.05. Consultation. 
 The term “consultation” shall mean
the good faith attempt by the Depositary to discuss, if practicable, the relevant issue in a timely manner with a person employed by the Company reasonably believed by the Depositary to be empowered by the Company to engage in such discussion on
behalf of the Company. 
 SECTION 1.06. Custodian. 

The term “Custodian” shall mean the principal São Paulo office of Banco Bradesco S.A., as agent of the Depositary for
the purposes of this Deposit Agreement, or any other firm or corporation which may hereafter be appointed by the Depositary pursuant to the terms of Section 5.05, as agent of the Depositary for the purposes of this Deposit Agreement as
substitute custodian, as the context shall require. 
 SECTION 1.07. Deposit Agreement. 

The term “Deposit Agreement” shall mean this Deposit Agreement including Exhibit A hereto, as the same may be amended from time
to time in accordance with the provisions hereof. 
 SECTION 1.08. Depositary; Corporate Trust Office. 

The term “Depositary” shall mean The Bank of New York Mellon, a New York banking corporation and any successor as depositary
hereunder. The term “Corporate Trust Office”, when used with respect to the Depositary, shall mean the office of the Depositary which at the date of this Agreement is 101 Barclay Street, New York, New York, 10286. If the address of the
Corporate Trust Office changes after the date of this Deposit Agreement, notice shall be given 30 days prior to such change by the Depositary to the Company of such new address. During such 30 day notification period, the Company shall send all
communications to the Depositary’s previous address. 

  
 2 

 SECTION 1.09. Deposited Securities. 

The term “Deposited Securities” as of any time shall mean Shares at such time deposited or deemed to be deposited under this
Deposit Agreement and any and all other securities, property and cash received by the Depositary or the Custodian in respect thereof and at such time held hereunder, subject as to cash to the provisions of Section 4.05. 

SECTION 1.10. Dollars; Real. 
 The terms “Dollar”, “Dollars” or “$” shall mean United States dollars or such other currency as is for the time being legal tender in the United States of America. The terms
“Real”, “Reais” or “R$” shall mean the lawful currency of Brazil or such other currency as is for the time being legal tender in Brazil. 
 SECTION 1.11. Foreign Currency. 
 The term “Foreign Currency”
shall mean any currency other than Dollars. 
 SECTION 1.12. Holder. 

The term “Holder” shall mean any person holding a Receipt or a security entitlement or other interest in American Depositary
Shares, whether for its own account or for the account of another person, but that is not the Owner of that Receipt or those American Depositary Shares. 
 SECTION 1.13. Owner. 
 The term “Owner” shall mean the person in
whose name a Receipt is registered on the books of the Depositary maintained for such purpose. 
 SECTION 1.14. Receipts.

 The term “Receipts” shall mean the American Depositary Receipts issued hereunder evidencing any whole number of
American Depositary Shares, substantially in the form of Exhibit A annexed hereto, with appropriate insertions, modifications and omissions as hereinafter provided in this Deposit Agreement. 

SECTION 1.15. Registrar. 
 The term “Registrar” shall mean, subject to any applicable rules or regulations of any securities exchange upon which the American Depositary Shares may be listed or traded, any bank or trust
company having an office in the Borough of 

  
 3 

 
Manhattan, The City of New York, which shall be appointed as agent of the Depositary for the purposes of this Deposit Agreement, upon prior written notice to the Company, to register Receipts and
transfers, combinations and split-ups of Receipts as herein provided and shall include the Depositary and any co-registrar appointed by the Depositary for such purpose. 
 SECTION 1.16. Restricted Receipts. 
 The term “Restricted
Receipts” shall mean any Receipts issued pursuant to Section 4.04 hereunder in connection with the issuance of rights by the Company as set forth in such Section. Any such Restricted Receipts shall be legended in accordance with applicable
United States laws, and shall be subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under such laws. 
 SECTION 1.17. Securities Act of 1933. 
 The term “Securities Act of
1933” shall mean the United States Securities Act of 1933, as from time to time amended. 
 SECTION 1.18. Share
Registrar. 
 The term “Share Registrar” shall mean the entity that presently carries out the duties of registrar
for the Shares of the Company or any successor as registrar for the Shares of the Company and any other appointed agent of the Company for the transfer and registration of Shares. 

SECTION 1.19. Shares. 
 The term “Shares” shall mean common shares of the Company, heretofore validly issued and outstanding and fully paid, nonassessable and free of any pre-emptive rights of the holders of
outstanding Shares or hereafter validly issued, subscribed and outstanding and fully paid, nonassessable and free of any pre-emptive rights of the holders of outstanding Shares or interim certificates representing such Shares. Reference to Shares
shall include evidence of rights to receive Shares, whether or not stated in the particular instance; provided, however, that in no event shall the term “Shares” include evidence of rights to receive Shares with respect to
which the full purchase price has not been paid. 
  

	ARTICLE 2.	FORM OF RECEIPTS, DEPOSIT OF SHARES, EXECUTION AND DELIVERY, TRANSFER AND SURRENDER OF RECEIPTS. 

SECTION 2.01. Form and Transferability of Receipts. 
 Unless otherwise required by applicable rules or regulations of any securities market upon which the American Depositary Shares may be traded, definitive

  
 4 

 
Receipts shall be engraved or printed or lithographed and shall be executed by the Depositary by the manual signature of a duly authorized signatory of the Depositary; provided,
however, that such signature may be a facsimile if a Registrar for the Receipts shall have been appointed, such Registrar not to be deemed an agent of the Company and such Receipts are countersigned by the manual signature of a duly
authorized officer of the Registrar. No Receipt shall be entitled to any benefits under this Deposit Agreement, or be valid or enforceable for any purpose, unless such Receipt shall have been executed by the Depositary by the manual signature of a
duly authorized signatory of the Depositary or, if a Registrar for the Receipts shall have been appointed and the Depositary shall have signed by facsimile signature, countersigned by the manual signature of a duly authorized officer of the
Registrar. The Depositary shall maintain books on which each Receipt so executed and delivered as hereinafter provided and the transfer of each such Receipt shall be registered; provided, however, that if a Registrar has been appointed
then such books shall be maintained by the Registrar. Receipts bearing the manual or facsimile signature of a duly authorized signatory of the Depositary who was at any time a proper signatory of the Depositary shall bind the Depositary,
notwithstanding that such signatory of the Depositary has ceased to hold such office prior to the execution of such Receipts by the Registrar and their delivery or did not hold such office at the date of such Receipts. 

The Receipts may, with the prior written consent of the Company, and shall, at the request of the Company, be endorsed with or have
incorporated in the text thereof such legends or recitals or changes not inconsistent with the provisions of this Deposit Agreement or with any provision of the Company’s By-laws or Brazilian law as may be reasonably required by the Depositary
in respect of its obligations hereunder or as may be required by the Depositary or the Company to comply with any applicable law or regulations or with the rules and regulations of any securities exchange upon which American Depositary Shares may be
listed or traded or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts are subject by reason of the date of issuance of the underlying Deposited Securities or
otherwise. 
 Title to a Receipt (and to the American Depositary Shares evidenced thereby), when such Receipt is properly
endorsed or accompanied by proper instruments of transfer, shall be transferable by delivery as a certificated security in accordance with New York law; provided, however, that the Depositary, notwithstanding any notice to the
contrary, may treat the Owner thereof as the absolute owner thereof for the purpose of determining the person entitled to any distribution of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other
purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under this Deposit Agreement to any holder of a Receipt unless such holder is the Owner thereof. 

  
 5 

 SECTION 2.02. Deposit of Shares. 

Subject to the terms and conditions of this Deposit Agreement, evidence of rights to receive Shares may be deposited by delivery thereof
to the Custodian hereunder accompanied by any appropriate instrument or instruments of transfer in a form reasonably satisfactory to the Custodian, together with all such certifications as may be required by the Depositary or the Custodian or the
Company upon written notification to the Depositary in accordance with the provisions of this Deposit Agreement, and, if the Depositary requires, together with a written order directing the Depositary to execute and deliver to, or upon the written
order of, the person or persons stated in such order, a Receipt or Receipts for the number of American Depositary Shares representing such deposit. The Company or the Share Registrar, will, upon request by the Depositary, issue or cause to be issued
written confirmations as to holdings of Shares, it being agreed and understood that such confirmations do not constitute documents of title. Copies of the confirmations with respect to Deposited Securities shall be held by the Depositary or by the
Custodian for the account and to the order of the Depositary or at such other place or places as the Depositary shall determine. No Share shall be accepted for deposit unless accompanied by evidence reasonably satisfactory to the Depositary that any
necessary approval has been granted by any governmental body in Brazil which is then performing the function of the regulation of currency exchange. 
 If required by the Depositary and provided that no applicable Brazilian law is violated thereby, Shares presented for deposit at any time, whether or not the transfer books of the Company or the Share
Registrar, if applicable, are closed, shall also be accompanied by an agreement or assignment, or other instrument reasonably satisfactory to the Depositary, which will provide for the prompt transfer to the Custodian or the Depositary, as the case
may be, with respect to such Shares of any dividend or right to subscribe for additional Shares or to receive other property which any person in whose name the Shares are or have been registered may thereafter receive upon or in respect of such
deposited Shares or, in lieu thereof, such agreement of indemnity or other agreement as shall be reasonably satisfactory to the Depositary. 
 At the request and risk and expense of any person proposing to deposit Shares, and for the account of such person, the Depositary may receive evidence of rights to receive Shares to be deposited, together
with the other instruments herein specified, for the purpose of forwarding such documentation to the Custodian for deposit hereunder. 
 Upon each delivery to the Custodian of evidence of rights to receive Shares to be deposited hereunder, together with the other documents above specified, the Custodian shall, as soon as transfer and
recordation can be accomplished, present such documentation to the Company or the Share Registrar, if applicable, for transfer and recordation of the Shares being deposited in the name of the Depositary or its nominee or the Custodian or its
nominee. 

  
 6 

 Deposited Securities shall be held by the Depositary or by the Custodian for the account and
to the order of the Depositary or at such other place or places as the Depositary shall determine. 
 SECTION 2.03. Execution
and Delivery of Receipts. 
 Upon receipt by the Custodian of any deposit of Shares pursuant to Section 2.02 (and in
addition, if the transfer books of the Company or the Share Registrar, if applicable, are open, the Depositary may in its sole discretion require reasonable evidence that any Deposited Securities have been recorded upon the books of the Company or
the Share Registrar, if applicable, in the name of the Depositary or its nominee or the Custodian or its nominee), together with the other documents required as specified herein, the Custodian shall promptly notify the Depositary of such deposit and
the person or persons to whom or upon whose written order a Receipt or Receipts are deliverable in respect thereof and the number of American Depositary Shares to be evidenced thereby. Such notification shall be made by letter (first class air mail
postage prepaid) or, at the request, risk and expense of the person making the deposit, by air courier, cable, telex or facsimile transmission. Upon receiving such notice from the Custodian, or upon the receipt of Shares by the Depositary, the
Depositary, subject to the terms and conditions of this Deposit Agreement (including, but not limited to the terms and conditions contained in Section 2.02), shall execute and deliver at its Corporate Trust Office and, if applicable, cause the
Registrar to countersign, to or upon the order of the person or persons named in the notice delivered to the Depositary or requested by the person depositing such Shares with the Depositary, a Receipt or Receipts, registered in such name or names
and evidencing any authorized number of American Depositary Shares requested by such person or persons, but only upon payment to the Depositary of the fee of the Depositary for the execution and delivery of such Receipt or Receipts as provided in
Section 5.09, and of all taxes and governmental charges and fees payable in connection with such deposit and the transfer of the deposited Shares. 
 SECTION 2.04. Transfer of Receipts; Combination and Split-up of Receipts. 

The Depositary, subject to the terms and conditions of this Deposit Agreement, shall, as promptly as practicable, register transfers on
its transfer books from time to time of any Receipt, upon surrender, by the Owner in person or by a duly authorized attorney, of such Receipt properly endorsed or accompanied by proper instruments of transfer, and duly stamped, as may be required by
the laws of the State of New York and of the United States of America. Thereupon, the Depositary shall execute and, if applicable, cause the Registrar to countersign a new Receipt or Receipts evidencing the same aggregate number of American
Depositary Shares as were evidenced by the Receipt surrendered and deliver the same to or upon the order of the person entitled thereto, subject to receipt of all certificates, if any, as the Depositary or the Company may require in order to comply
with any applicable laws. 

  
 7 

 The Depositary, subject to the terms and conditions of this Deposit Agreement, shall, upon
surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts, execute and deliver and, if applicable, cause the Registrar to countersign, subject to receipt of all certificates, if any, as the
Depositary or the Company may require in order to comply with any applicable laws, a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as
were evidenced by the Receipt or Receipts surrendered. 
 The Depositary, at its expense, may appoint one or more co-transfer
agents, upon at least 20 days’ prior written notice to the Company, for the purpose of effecting transfers, combinations and split-ups of Receipts at designated transfer offices on behalf of the Depositary. Each co-transfer agent appointed
under this Section 2.04 shall give notice in writing to the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this Deposit Agreement. In carrying out its functions, a co-transfer agent may require
evidence of authority and compliance with applicable laws and other requirements by Owners or holders of Receipts or persons entitled to Receipts and will be entitled to protection and indemnity to the same extent as the Depositary. 

SECTION 2.05. Surrender of Receipts and Withdrawal of Shares. 

Upon surrender at the Corporate Trust Office of the Depositary of a Receipt for the purpose of withdrawal of a whole number of Deposited
Securities represented thereby, and upon payment of the fee of the Depositary for the cancellation of Receipts as provided in Section 5.09 and subject to the terms and conditions of this Deposit Agreement, the Company’s By-laws and the
Deposited Securities, the Owner of such Receipt shall be entitled to delivery of the whole number of Shares and the number of any other Deposited Securities represented by the American Depositary Shares evidenced thereby and so withdrawn to an
account designated by such Owner and to delivery at the Corporate Trust Office of the Depositary of a new Receipt evidencing any Shares and other Deposited Securities not withdrawn. Such delivery shall be made, as hereinafter provided, as promptly
as practicable. 
 A Receipt surrendered for such purposes may be required by the Depositary to be properly endorsed in blank or
accompanied by proper instruments of transfer in blank, and if the Depositary requires, the Owner thereof shall execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being withdrawn to be
delivered to an account designated by such Owner. Thereupon the Depositary shall, subject to Sections 2.06, 3.01 and 3.02 hereof, and to the other terms and conditions of this Deposit Agreement, effect, or direct the Custodian, to effect, such
delivery, except that the Depositary may make delivery to such person or persons at the Corporate Trust Office of the Depositary of any dividends or distributions upon such Deposited Securities, or of any proceeds of sale of any such dividends or
distributions, which may at the time be held by the Depositary. 

  
 8 

 At the request, risk and expense of any Owner so surrendering a Receipt, and for the account
of such Owner, the Depositary shall direct the Custodian to forward any cash or other property (other than rights) and forward any evidence of rights to receive Deposited Securities or any certificates or other proper documents of title (if
available) for any such Deposited Securities to the Depositary for delivery at the Corporate Trust Office of the Depositary. Such direction shall be given by mail or, at the request, risk and expense of such Owner, by air courier, cable, telex or
facsimile transmission. 
 Neither the Depositary nor the Custodian shall deliver Shares (other than as provided in
Section 3.01, 4.08, 4.11 or 6.02), or otherwise permit Shares to be withdrawn from the facility created hereby, except upon the receipt and cancellation of Receipts. 
 SECTION 2.06. Limitations on Execution and Delivery, Transfer and Surrender of Receipts. 
 As a condition precedent to the execution and delivery, registration of transfer, split-up, combination or surrender of any Receipt, the delivery of any distribution thereon, or the withdrawal of any
Deposited Securities, the Depositary, the Company or the Custodian may require payment from the presenter of the Receipt or the depositor of the Shares of a sum sufficient to reimburse it for any tax or other governmental charge and any stock
transfer, registration or conversion fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or Deposited Securities being withdrawn) and payment of any applicable fees as herein provided, may
require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with such regulations, if any, as the Depositary may establish consistent with the provisions of this Deposit
Agreement, including, without limitation, Section 7.07. 
 The delivery of Receipts against deposits of Shares generally or
against deposits of particular Shares may be suspended and the transfer of Receipts in particular instances may be refused or the registration of transfer of outstanding Receipts generally may be suspended during any period when the transfer books
of the Depositary are closed as permitted by Section 5.01, or if any such action is deemed necessary or advisable by the Company or the Depositary at any time or from time to time because of any requirement of law or of any government or
governmental or regulatory body or commission or following receipt of notification from the Company of the suspension of the quotation of the Shares in Brazil, or under any provision of this Deposit Agreement or the By-laws of the Company, or for
any other reason, subject to Section 7.07 of this Deposit Agreement. The Depositary shall notify the Company as promptly as practicable of any suspension or refusal under the preceding sentence that is outside the ordinary

  
 9 

 
course of business and the reason for that action. The surrender of outstanding Receipts and withdrawal of Deposited Securities may not be suspended except in the case of (i) temporary
delays caused by closing the transfer books of the Depositary, Company or the Share Registrar or the deposit of Shares in connection with voting at a shareholders’ meeting or the payment of dividends, (ii) the payment of fees, taxes and
similar charges and (iii) compliance with any United States or foreign laws or governmental regulations relating to the Receipts or to the withdrawal of the Deposited Securities. The Depositary and the Custodian will comply with reasonable
written instructions from the Company requesting that the Depositary and the Custodian not accept for deposit hereunder any Shares identified in such instructions in order to facilitate the Company’s compliance with United States federal
securities laws, any provision of the Company’s By-laws or Brazilian law. Without limitation of the foregoing, neither the Depositary nor the Custodian shall accept for deposit under this Deposit Agreement any Shares (i) which, to the
actual knowledge of the Depositary, are required to be registered under the Securities Act of 1933 prior to public sale in the United States, unless a registration statement is in effect as to such Shares or (ii) the deposit of which would, to
the actual knowledge of the Depositary, infringe any provisions of Brazilian law. 
 SECTION 2.07. Lost Receipts, etc.

 In case any Receipt shall be mutilated, destroyed, lost or stolen, the Depositary shall execute and deliver and, if
applicable, cause the Registrar to countersign, a new Receipt of like tenor, in exchange and substitution for such mutilated Receipt upon cancellation thereof, or in lieu of and in substitution for such destroyed or lost or stolen Receipt, upon the
Owner thereof filing with the Depositary (a) a request for such execution and delivery before the Depositary has notice that the Receipt has been acquired by a bona fide purchaser and (b) a sufficient indemnity bond, and satisfying any
other reasonable requirements imposed by the Depositary. 
 SECTION 2.08. Cancellation and Destruction of Surrendered
Receipts. 
 All Receipts surrendered to the Depositary shall be cancelled by the Depositary. Cancelled Receipts shall not
be entitled to any benefits under this Deposit Agreement or be valid or enforceable for any purpose, and the Depositary shall destroy Receipts so canceled and inform the Company. The Depositary shall keep such records of all Receipts outstanding,
and of their payment, cancellation and destruction, as are required under applicable stock transfer rules. 
 SECTION 2.09.
Pre-Release of Receipts. 
 Unless requested in writing by the Company to cease doing so, the Depositary may,
notwithstanding Section 2.03, execute and deliver Receipts prior to the receipt of Shares pursuant to Section 2.02 (a “Pre-Release”). The Depositary may, pursuant to Section 2.05, deliver Shares upon the receipt and
cancellation of Receipts which have been Pre-Released, whether or not such cancellation is prior to the 

  
 10 

 
termination of such Pre-Release or the Depositary knows that such Receipt has been Pre-Released. The Depositary may receive Receipts in lieu of Shares in satisfaction of a Pre-Release. Each
Pre-Release will be (a) preceded or accompanied by a written representation and agreement from the person to whom Receipts or Shares are to be delivered (a “Pre-Releasee”), that such Pre-Releasee, or its customer, (i) as of the
time of such transaction, owns the Shares or Receipts to be remitted, as the case may be, (ii) assigns all beneficial right, title and interest in such Shares or Receipts, as the case may be, to the Depositary in its capacity as such and for
the benefit of the Owners, and (iii) will not take any action with respect to such Shares or Receipts, as the case may be, that is inconsistent with the transfer of beneficial ownership (including, without the consent of the Depositary,
disposing of such Shares or Receipts, as the case may be), other than in satisfaction of such Pre-Release, (b) at all times fully collateralized with cash, U.S. government securities or such other collateral as the Depositary determines, in
good faith, will provide substantially similar liquidity and security, (c) terminable by the Depositary on not more than five (5) business days notice, and (d) subject to such further indemnities and credit regulations as the
Depositary deems appropriate. The Company will not incur any liability to any Owners or holders of a Receipt as a result of actions taken by the Depositary pursuant to this Section 2.09. The number of American Depositary Shares which are
outstanding at any time as a result of Pre-Release will not normally exceed thirty percent (30%) of the Shares deposited hereunder; provided, however, that the Depositary reserves the right to disregard such limit from time to
time as it deems reasonably appropriate and may, with the prior written consent of the Company, change such limit for the purposes of general application. The Depositary will also set dollar limits with respect to Pre-Release transactions to be
entered into hereunder with any particular Pre-Releasee on a case-by-case basis as the Depositary deems appropriate. For purposes of enabling the Depositary to fulfill its obligations to the Owners under this Deposit Agreement, the collateral
referred to in clause (b) above shall be held by the Depositary as security for the performance of the Pre-Releasee’s obligations to the Depositary in connection with a Pre-Release transaction, including the Pre-Releasee’s obligation
to deliver Shares or Receipts upon termination of a Pre-Release transaction (and shall not, for the avoidance of doubt, constitute Deposited Securities hereunder). 
 The Depositary may retain for its own account any compensation received by it in connection with the foregoing. 
 SECTION 2.10. No Liability and Responsibility. 
 None of the Company, the
Depositary or the Custodian will have any liability or responsibility whatsoever for any action or failure to act by any Owner relating to the Owner’s obligations under any applicable Brazilian law or regulation relating to foreign investment
in Brazil in respect of a withdrawal or sale of Deposited Securities, including, without limitation, any failure to comply with a requirement to register such investment pursuant to the terms of any such applicable Brazilian law or

  
 11 

 
regulation prior to such withdrawal or any failure to report foreign exchange transactions to the Brazilian Central Bank, as the case may be. Each Owner will be responsible for the report of any
false information relating to foreign exchange transactions to the Custodian or the Brazilian Central Bank in connection with deposits or withdrawals of Deposited Securities. 
 SECTION 2.11. Maintenance of Records. 
 The Depositary agrees to maintain
or cause its agents to maintain, and shall make or cause to be made available to the Company for review and copying during normal business hours at the Company’s expense, records of all Receipts issued under Sections 2.03 and 2.04, all Receipts
surrendered and all Deposited Securities withdrawn under Section 2.05, substitute Receipts delivered under Section 2.07 and of cancelled or destroyed Receipts under Section 2.08, all in keeping with procedures ordinarily followed by
stock transfer agents in the City of New York. 
 SECTION 2.12. Uncertificated American Depositary Shares; DTC Direct
Registration System. 
 Notwithstanding anything to the contrary in this Deposit Agreement: 

(a) American Depositary Shares may be certificated securities evidenced by Receipts or uncertificated securities. The form of Receipt
annexed as Exhibit A to this Deposit Agreement summarizes the terms and conditions of, and will be the prospectus required under the Securities Act of 1933 for, both certificated and uncertificated American Depositary Shares. Except for those
provisions of this Deposit Agreement that by their nature do not apply to uncertificated American Depositary Shares, all the provisions of this Deposit Agreement shall apply, mutatis mutandis, to both certificated and uncertificated American
Depositary Shares. 
 (b) (i) The term “deliver”, or its noun form, when used with respect to Receipts, shall mean
(A) book-entry transfer of American Depositary Shares to an account at The Depository Trust Company, or its successor (“DTC”), designated by the person entitled to such delivery, evidencing American Depositary Shares registered in the
name requested by that person, (B) registration of American Depositary Shares not evidenced by a Receipt on the books of the Depositary in the name requested by the person entitled to such delivery and mailing to that person of a statement
confirming that registration or (C) if requested by the person entitled to such delivery, delivery at the Corporate Trust Office of the Depositary to the person entitled to such delivery of one or more Receipts. 

(ii) The term “surrender”, when used with respect to Receipts, shall mean (A) one or more book-entry transfers of American
Depositary Shares to the DTC account of the Depositary, (B) delivery to the Depositary at its Corporate Trust Office of an instruction to surrender American Depositary Shares not evidenced by a Receipt or (C) surrender to the Depositary at
its Corporate Trust Office of one or more Receipts evidencing American Depositary Shares. 

  
 12 

 (c) American Depositary Shares not evidenced by Receipts shall be transferable as
uncertificated registered securities under the laws of New York. 
 (d) The Depositary shall have a duty to register a transfer,
in the case of uncertificated American Depositary Shares, upon receipt from the Owner of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in subsection (f) below). The Depositary,
upon surrender of a Receipt for the purpose of exchanging it for uncertificated American Depositary Shares, shall cancel that Receipt and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American
Depositary Shares that the surrendered Receipt evidenced. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in subsection (f) below) from the Owner of
uncertificated American Depositary Shares for the purpose of exchanging them for certificated American Depositary Shares, shall execute and deliver to the Owner a Receipt evidencing the same number of certificated American Depositary Shares.

 (e) Upon satisfaction of the conditions for replacement of a Receipt that is mutilated, lost, destroyed or stolen, the
Depositary shall deliver to the Owner the American Depositary Shares evidenced by that Receipt in uncertificated form unless otherwise requested by the Owner. 
 (f) (i) The parties acknowledge that the Direct Registration System (“DRS”) and Profile Modification System (“Profile”) shall apply to uncertificated American Depositary Shares upon
acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated American Depositary Shares, which ownership shall be evidenced by periodic statements issued by the
Depositary to the Owners entitled thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American
Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register such transfer. 

(ii) In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties understand that the
Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in requesting a registration of transfer and delivery as described in subsection (i) has the actual
authority to act on behalf of the Owner (notwithstanding any requirements under the Uniform Commercial Code). For the avoidance of doubt, the provisions of Sections 5.3 and 5.8 shall apply to the matters arising from the use of the DRS. The parties
agree that the Depositary’s reliance on and 

  
 13 

 
compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with this Deposit Agreement shall not constitute negligence or bad faith on the part of
the Depositary. 
  

	ARTICLE 3.	CERTAIN OBLIGATIONS OF OWNERS OF RECEIPTS. 

 SECTION 3.01. Providing Proofs, Certificates and Other Information. 
 Any
person presenting Shares for deposit or any Owner may be required from time to time to provide such proof of (a) citizenship, residence, exchange control approval or payment of taxes and other governmental charges and compliance with all
applicable laws and regulations governing Deposited Securities and the terms of this Deposit Agreement and (b) the identity of any person legally or beneficially interested in the Receipt and Shares and the nature of such interest, such
information relating to the registration of the Shares presented for deposit on the books of the Company or the Share Registrar, if applicable or to provide such other information, to execute such certificates and to make such representations and
warranties, as the Depositary may reasonably deem necessary or proper or as the Company reasonably may require by written request to the Depositary or the Custodian. The Depositary may withhold the delivery or registration of transfer of any
Receipt, the distribution of any dividend or other distribution or sale of rights or of the proceeds thereof, or the delivery of any Deposited Securities until such proof or other information is provided, such certificates are executed or such
representations and warranties are made pertaining to such Receipt to the satisfaction of the Company and the Depositary. 
 The
Depositary shall provide the Company, upon the Company’s request and in a timely manner, with copies of any information or other material which it receives pursuant to this Section 3.01, to the extent that disclosure is permitted under
applicable law. Each Owner agrees to provide any information requested by the Company or the Depositary pursuant to this Section. 
 SECTION 3.02. Liability of Owner for Taxes. 
 If any tax or other
governmental charge shall become payable with respect to any Receipt or any Deposited Securities represented by any Receipt, such tax or other governmental charge shall be payable by the Owner of such Receipt to the Depositary. The Depositary may
refuse, and the Company shall be under no obligation, to effect registration of transfer of all or part of such Receipt or any withdrawal of Deposited Securities represented thereby until such payment is made, and may withhold any dividends or other
distributions or, after attempting by reasonable means to notify such Owner, may sell for the account of the Owner thereof any part or all of the Deposited Securities represented by such Receipt, and may apply such dividends or other distributions
or the proceeds of any such sale to payment of such tax or other governmental charge, the Owner of such Receipt remaining liable for any deficiency. 

  
 14 

 SECTION 3.03. Warranties on Deposit of Shares. 

Every person depositing Shares under this Deposit Agreement, including every person depositing Shares on behalf of an owner of Shares,
shall be deemed thereby to represent and warrant that (i) such Shares are validly issued, fully paid and non-assessable, (ii) the person making such deposit is duly authorized so to do, (iii) such Shares are not “restricted
securities” as defined in Rule 144 under the Securities Act of 1933, (iv) such Shares are free and clear of any lien, encumbrance, security interest, charge, mortgage, pledge or restriction on transfer, (v) such Shares are free of any
pre-emptive rights of the holders of outstanding Shares, and (vi) such Shares include all rights to receive dividends thereon. Such representations and warranties shall survive the deposit of such Shares and issuance of Receipts in respect
thereof. 
 SECTION 3.04. Information Requests. 
 The Company, and the Depositary at the Company’s request, may from time to time request Owners of Receipts to provide information as to the capacity in which such Owners own or owned Receipts and
regarding the identity of any other persons then or previously interested in such Receipts as to the nature of such interest and various other matters. Each such Owner agrees to provide any such information reasonably requested by the Company or the
Depositary pursuant to this Section 3.04 and such agreement shall survive any disposition of such Owner’s Receipts or the American Depositary Shares evidenced thereby. The Depositary agrees to use reasonable efforts to comply with written
instructions received from the Company requesting that the Depositary forward any such requests to the Owners and to forward to the Company any responses to such requests received by the Depositary, and to use its best reasonable efforts, at the
Company’s request and expense, to assist the Company in obtaining such information with respect to the American Depositary Shares; provided that nothing herein shall be interpreted as obligating the Depositary to provide or obtain any such
information not provided to the Depositary by such Owners. 
 Each of the Depositary and the Company hereby confirms to the
other that for as long as this Deposit Agreement is in effect, it shall furnish the CVM and the Central Bank, at any time and within the period that may be determined, with any information and documents related to the American Depositary Share
program and the American Depositary Shares issued hereunder. In the event that the Depositary or the Custodian shall be advised in writing by reputable independent Brazilian counsel that the Depositary or Custodian reasonably could be subject to
criminal, or material, as reasonably determined by the Depositary, civil, liabilities as a result of the Company having failed to provide such information or documents reasonably available only through the Company, the Depositary shall have the
right to terminate this Deposit Agreement, upon at least 30 days’ prior notice to the Owners and the Company, and the Depositary shall not be subject to any liability hereunder on account of such termination or such determination. The effect of
any such termination of this Deposit Agreement shall be as provided in Section 6.02. 

  
 15 

	ARTICLE 4.	THE DEPOSITED SECURITIES. 

SECTION 4.01. Cash Distributions. 
 Whenever the Depositary or the Custodian shall receive any cash dividend or other cash distribution on any Deposited Securities, the Depositary shall, after any necessary conversion of such distribution
into Dollars pursuant to Section 4.05 and after fixing a record date pursuant to Section 4.06, as promptly as practicable, distribute dividend checks or otherwise pay or distribute the amount thus received (net of the fees and expenses of
the Depositary as provided in Section 5.09) to the Owners of Receipts entitled thereto in proportion to the number of American Depositary Shares held by them respectively; provided, however, that the Depositary shall make
appropriate adjustments in the amounts so distributed in respect of any amounts withheld or requested to be withheld by the Company, the Custodian or the Depositary from any such distribution on account of (i) taxes or other governmental
charges including, but not limited to, withholding taxes referred to in Section 4.11, or (ii) reasonable expenses of the Depositary in the conversion of Foreign Currency into Dollars pursuant to Section 4.05. The Depositary shall
distribute only such amount, however, as can be distributed without distributing to any Owner a fraction of one cent. Any such fractional amounts shall be rounded to the nearest whole cent and so distributed to Owners entitled thereto. 

SECTION 4.02. Distributions Other Than Cash, Shares or Rights. 

Subject to the provisions of Sections 4.11 and 5.09, whenever the Depositary or the Custodian shall receive any distribution other
than cash, Shares or rights upon any Deposited Securities, the Depositary shall, as promptly as practicable, cause the securities or property received by it to be distributed to the Owners, as of the record date fixed pursuant to Section 4.06,
of Receipts entitled thereto in proportion to the number of American Depositary Shares held by them as of such date in any manner that the Depositary may, following consultation with the Company, reasonably deem equitable and practicable for
accomplishing such distribution; provided, however, that if the Company shall so direct or if, in the reasonable opinion of the Depositary such distribution cannot be made proportionately among such Owners, or if for any other reason
(including but not limited to any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that such securities must be registered under the Securities Act of 1933 in order to be
distributed to Owners) the Depositary, in its reasonable opinion, deems such distribution not to be feasible, the Depositary may, following consultation with the Company to the extent practicable, adopt such method as it may deem lawful, equitable
and practicable for the purpose of effecting such distribution, including the public or private sale of the securities or other property thus received, or any part thereof, and the net proceeds of any such sale

  
 16 

 
(net of the fees and expenses of the Depositary as provided in Section 5.09) shall be as promptly as practicable distributed by the Depositary to the Owners entitled thereto as in the case
of a distribution received in cash; provided, however, that any unsold balance of such securities or property shall be distributed by the Depositary to the Owners entitled thereto, if such distribution is feasible without withholding
for or on account of any taxes or other governmental charges and without registration under the Securities Act of 1933, in accordance with such lawful, equitable and practicable method as the Depositary may have adopted; provided
further, however, that no distribution to Owners shall be unreasonably delayed by any action of the Depositary or any of its agents. To the extent such securities or other property, or the net proceeds thereof, is not effectively
distributed to Owners as provided herein, the same shall constitute Deposited Securities and each American Depositary Share shall thereafter also represent its proportionate interest in such securities or other property or net proceeds. The
Depositary may withhold any distribution of securities under this Section 4.02 if it has not received reasonably satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933. The
Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Section 4.02 that is sufficient to pay its fees and expenses in respect of that distribution. 

SECTION 4.03. Distributions in Shares. 
 If any distribution upon any Deposited Securities consists of a dividend in, or distribution without payment of any subscription price of, Shares, including pursuant to any program under which holders of
Deposited Securities may elect to receive cash or Shares, the Depositary may, and shall if the Company so requests, execute and deliver and, if applicable, cause the Registrar to countersign, as promptly as practicable, additional Receipts
evidencing American Depositary Shares representing the amount of Shares received as such dividend or distribution and distribute to the Owners, as of the record date fixed pursuant to Section 4.06, of Receipts entitled thereto in proportion to
the number of American Depositary Shares held by them as of such date, Receipts evidencing additional American Depositary Shares, subject to the terms and conditions of this Deposit Agreement with respect to the deposit of Shares and the issuance of
Receipts, including the withholding of any tax or other governmental charge as provided in Section 4.11 and the payment of fees of the Depositary as provided in Section 5.09 (and the Depositary may sell, by public or private sale, an
amount of the Shares received sufficient to pay its fees and expenses in respect of that distribution). The Depositary may withhold any such distribution if it has not received adequate assurances from the Company that such distribution does not
require registration under the Securities Act of 1933; provided, however, that no distribution to Owners pursuant to this Section shall be unreasonably delayed by any action of the Depositary or the Custodian. In lieu of delivering
Receipts for fractional American Depositary Shares, the Depositary shall sell the amount of Shares representing the aggregate of such fractions and distribute the net proceeds, all in the manner and subject to the conditions set forth in
Section 4.01 or take 

  
 17 

 
such other action, with the approval of the Company, as may be appropriate. Notwithstanding the foregoing, if the Company shall so direct or if in the reasonable opinion of the Depositary such
distribution cannot be made or if for any reason (including, but not limited to, any requirement that the Company, the Custodian or the Depositary withhold an amount on account for taxes or other governmental charges or that such Shares must be
registered under the Securities Act of 1933 in order to be distributed to Owner) the Depositary, in its reasonable opinion, determines that a distribution in Shares is not feasible or may not be legally made to some or all Owners, the Depositary
may, following consultation with the Company, adopt such method as it may deem lawful, equitable and practicable for the purpose of effecting such distribution, all in the manner and subject to the conditions set forth in Section 4.02, or take
such other action, with the approval of the Company, as may be appropriate. If additional Receipts are not so distributed, each American Depositary Share shall thenceforth also represent the additional Shares distributed with respect to the
Deposited Securities represented thereby. 
 SECTION 4.04. Rights Distributions. 

In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for
additional Shares or any rights of any other nature, the Depositary shall (after consultation with the Company as to the procedure to be followed) make, as promptly as practicable, such rights available to any Owners, including the distribution of
warrants or other instruments therefor in such form as it deems appropriate, or dispose of such rights on behalf of any Owners and distribute, as promptly as practicable, the net proceeds in Dollars to such Owners, but only pursuant to a
separate agreement to be entered into between the Company and the Depositary setting forth the conditions and procedures that shall apply to that particular offering. If, by the terms of such rights offering or by reason of applicable law, the
Depositary may neither make such rights available to any Owners, nor dispose of such rights and distribute the net proceeds to such Owners, then the Depositary shall allow the rights to lapse. If, at the time of the offering of any rights the
Depositary determines, following consultation with the Company, that it is lawful and feasible to make such rights available to certain Owners but not to other Owners, (i) the Depositary shall, pursuant to an agreement as described above,
distribute, as promptly as practicable, to every Owner with respect to whom it determines the distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other instruments
therefor in such form as it deems appropriate and (ii) in respect of Owners to whom the Depositary determines the distribution not to be lawful or feasible, the Depositary shall use reasonable efforts to sell the rights, warrants or other
instruments in proportion to the number of American Depositary Shares held by such Owners and distribute the net proceeds of such sales (net of the fees of the Depositary as provided in Section 5.09 and all taxes and governmental charges
payable in connection with such rights and subject to the terms and conditions of this Deposit Agreement) to such Owners upon an averaged or other fair and practicable basis without regard to any distinctions among such Owners resulting from
exchange restrictions, the date of delivery of any Receipt or otherwise. 

  
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 In circumstances in which rights would not otherwise be distributed, if an Owner requests
the distribution of warrants or other instruments in order to exercise the rights allocable in respect of American Depositary Shares of such Owner hereunder, the Depositary will make such rights available to such Owner upon written notice from the
Company to the Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) the Owner has executed such documents as the Company has determined in its sole discretion are reasonably
required under applicable law. Upon instruction pursuant to such warrants or other instruments to the Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal
to the purchase price of the Shares or other securities to be received upon the exercise of the rights, and upon payment of the fees of the Depositary as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner,
exercise the rights and purchase such Shares or other securities, and the Company shall cause the Shares or other securities so purchased to be delivered to the Depositary on behalf of such Owner. As agent for such Owner, the Depositary will cause
the Shares so purchased to be deposited pursuant to Section 2.02 of this Deposit Agreement, and shall, pursuant to Section 2.03 of this Deposit Agreement, execute and deliver Receipts to such Owner. In the case of a distribution pursuant
to the this paragraph, such Receipts shall be legended, if required, in accordance with applicable U.S. laws, and shall be subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under such laws. 

If registration under the Securities Act of 1933 of the rights or the securities to which any rights relate is required in order for the
Company or the Depositary to offer such rights to the Owners and sell the securities represented by such rights, except as otherwise provided in the preceding paragraph, the Company and the Depositary will not offer rights to Owners unless a
registration statement is in effect with respect both to such rights and any securities to be received upon exercise of such rights under the Securities Act of 1933 or unless the offering and sale of such securities to such Owners are exempt from
registration under the Securities Act of 1933. Nothing in this Deposit Agreement shall create any obligation on the part of the Company to file a registration statement in respect of any rights or securities for any purpose or to endeavor to have
such a registration statement declared effective. 
 If an Owner requests the distribution of warrants or other instruments,
notwithstanding that there has been no such registration under the Securities Act of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United States for the Company upon which
the Depositary may rely that such distribution to such Owner is exempt from such registration. 

  
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 The Depositary shall not be responsible for any failure to determine that it may be lawful
or feasible to make such rights available to Owners in general or any Owner in particular. 
 SECTION 4.05. Conversion of
Foreign Currency. 
 Whenever the Depositary or the Custodian shall receive Foreign Currency, by way of dividends or other
distributions or as the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the Foreign Currency so received can in the reasonable judgment of the Depositary be converted on a reasonable basis into
Dollars and transferred to the United States, the Depositary shall, subject to any restrictions imposed by applicable law, regulations or permits, convert or cause to be converted, by sale or in any other manner that it may determine, such Foreign
Currency into Dollars, and such Dollars shall be distributed, as promptly as practicable, net of any customary expenses incurred by the Depositary in connection with the conversion of currency pursuant to this Section 4.05, to the Owners
entitled thereto as of the record date fixed pursuant to Section 4.06 in accordance with any applicable provisions of Sections 4.01, 4.02, 4.03 and 4.04. Such distribution may be made upon an averaged or other fair and practicable basis
without regard to any distinctions among Owners resulting from exchange restrictions or otherwise. Upon the request of the Company, the Depositary shall inform the Company of the exchange rate at which Foreign Currency conversion has been carried
out. 
 If such conversion or distribution can be effected only with the approval or license of any government or agency
thereof, the Depositary shall file as promptly as practicable such application for approval or license, if any, as it may deem desirable; provided, however, that if such application involves or refers to or is made on behalf of the
Company, such application shall not be filed unless approved by the Company, which approval shall not be unreasonably withheld or delayed. 
 If at any time the Depositary shall determine, following consultation with the Company, that in its reasonable judgment any Foreign Currency received by the Depositary or the Custodian is not, pursuant to
applicable law or otherwise, convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof which is required for such conversion is denied or in the opinion of the
Depositary, following consultation with the Company, is not obtainable, or if any such approval or license is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute such Foreign Currency (or an
appropriate document evidencing the right to receive such Foreign Currency) received by the Depositary or the Custodian to such Owner or may, and will if requested in writing by an Owner, hold any amounts of Foreign Currency not distributed
uninvested for the respective accounts of, the Owners entitled to receive the same, without liability for interest thereon. 

  
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 If any such conversion of Foreign Currency, in whole or in part, cannot be effected for
distribution to some Owners entitled thereto, the Depositary may in its discretion, following consultation with the Company, make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto for whom such
conversion and distribution is practicable and may distribute the balance of the Foreign Currency (or an appropriate document evidencing the right to receive such Foreign Currency) received by the Depositary or the Custodian to, or hold such balance
uninvested and without liability for the respective accounts of, the Owners entitled thereto for whom such conversion and distribution is not practicable. 
 SECTION 4.06. Fixing of Record Date. 
 Whenever any cash dividend or other
cash distribution shall become payable or any distribution other than cash shall be made, or whenever rights shall be issued with respect to the Deposited Securities, or whenever for any reason there occurs a change in the number or type of
Deposited Securities that are represented by each American Depositary Share, or whenever the Depositary shall receive notice of any meeting of, or solicitation of consents or proxies from, holders of Shares or other Deposited Securities or whenever
the Company or the Depositary finds it necessary or convenient in respect of any matter, the Depositary shall fix a record date (which, to the extent practicable, shall be the same as any corresponding record date set by the Company with respect to
Shares) after consultation with the Company to the extent practicable if such date is to be different from a corresponding record date set by the Company for the determination of the Owners who shall be entitled to receive such dividend,
distribution or rights, or the net proceeds of the sale thereof, or to give instructions for the exercise of voting rights at any such meeting or in respect of any such solicitation or to receive information as to any such meeting or solicitation,
or for fixing the date on or after which each American Depositary Share will represent the changed number or type of Deposited Securities, subject to the terms and conditions of this Deposit Agreement. If the American Depositary Shares shall be
listed on any stock exchange, then any such record date shall be fixed in accordance with any applicable rules of such stock exchange. The Depositary as promptly as practicable shall advise the Company and, if the American Depositary Shares shall be
listed on any stock exchange, such stock exchange of any record date so fixed by the Depositary. 
 SECTION 4.07. Voting of
Deposited Securities. 
 Upon receipt of notice of any meeting or solicitation of consents or proxies of Owners of Shares or
other Deposited Securities, if requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, mail to the Owners a notice, the form of which notice shall be subject to the reasonable discretion of the Depositary, which
shall contain (a) such information as is contained in such notice of meeting received by the Depositary from the Company, and (b) a statement that the Owners as of the close of business on a specified record date will be entitled, subject
to 

  
 21 

 
any applicable provision of Brazilian law, the By-laws of the Company and the provisions of the Deposited Securities, to instruct the Depositary as to the exercise of the voting rights, if any,
pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary Shares and (c) a statement as to the manner in which such instructions may be given, including, when applicable, an express
indication that such instructions may be given or deemed given in accordance with the last sentence of this paragraph if no instruction is received. Upon the written request of an Owner on such record date, received on or before the date established
by the Depositary for such purpose (the “Instruction Date”), the Depositary shall endeavor, insofar as is practicable and permitted under applicable laws and the provisions of the By-laws of the Company and the provisions of the Deposited
Securities, to vote or cause to be voted the amount of Shares or other Deposited Securities represented by the American Depositary Shares evidenced by such Receipt in accordance with the instructions set forth in such request. The Depositary shall
not, and the Depositary shall ensure that the Custodian or any of its nominees shall not, vote or attempt to exercise the right to vote that attaches to the Shares or other Deposited Securities, other than in accordance with such instructions or
deemed instructions, if any. If (i) the Company instructed the Depositary to act under this Section 4.07 and gave the Depositary notice of any such meeting and details concerning the matters to be voted upon not less than 30 days prior to
the meeting date and (ii) no instructions are received by the Depositary from an Owner with respect to a matter and an amount of American Depositary Shares of that Owner on or before the date established by the Depositary for such purpose, the
Depositary shall deem that Owner to have instructed the Depositary to give a discretionary proxy to a person designated by the Company with respect to that matter and the amount of Deposited Securities represented by that amount of American
Depositary Shares and the Depositary shall give a discretionary proxy to a person designated by the Company to vote that amount of Deposited Securities as to that matter, except that no such instruction shall be deemed given and no such
discretionary proxy shall be given with respect to any matter as to which the Company informs the Depositary (and the Company agrees to provide such information as promptly as practicable in writing, if applicable) that (x) the Company does not
wish such proxy given, (y) substantial opposition exists or (z) such matter materially and adversely affects the rights of holders of Shares. 
 In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Deposited Securities, if the Company will request the Depositary to act under
this Section 4.07, the Company shall use reasonable efforts to give the Depositary notice of any such meeting and details concerning the matters to be voted upon not less than 30 days prior to the meeting date. 

There can be no assurance that Owners generally or any Owner in particular will receive the notice described in the second preceding
paragraph sufficiently prior to the Instruction Date to ensure that the Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth in the second preceding paragraph. 

  
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 Subject to the rules of any securities exchange on which American Depositary Shares or the
Deposited Securities represented thereby are listed or quoted, the Depositary shall, if requested by the Company deliver, at least two (2) Business Days prior to the date of such meeting, to the Company, to the attention of the Chief Financial
Officer and General Counsel, copies of all instructions received from Owners in accordance with which the Depositary will vote, or cause to be voted, the Deposited Securities represented by the American Depositary Shares evidenced by such Receipts
at such meeting. Delivery of instructions will be made at the expense of the Company (unless otherwise agreed in writing by the Company and the Depositary) provided that payment of any such expense by the Company shall not be a condition precedent
to the obligations of the Depositary under this Section 4.07. 
 SECTION 4.08. Changes Affecting Deposited
Securities. 
 In circumstances where the provisions of Section 4.03 do not apply, upon any change in nominal value,
change in par value, split-up, consolidation or other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger, consolidation or sale of assets affecting the Company or to which it is a party, any securities
which shall be received by the Depositary or the Custodian in exchange for, conversion of, replacement or otherwise in respect of Deposited Securities shall, subject to the terms of this Deposit Agreement and applicable law, including any applicable
provisions of the Securities Act of 1933, be treated as new Deposited Securities under this Deposit Agreement, and each American Depositary Share shall, subject to the terms of this Deposit Agreement and applicable law, including any applicable
provisions of the Securities Act of 1933, thenceforth represent an appropriately adjusted proportional interest in the Deposited Securities so received in exchange or conversion or replacement or otherwise, unless additional or new Receipts are
delivered pursuant to the following sentence. In any such case the Depositary may, and shall if the Company shall so request, execute and deliver and, if applicable, cause the Registrar to countersign additional Receipts as in the case of a stock
dividend on the Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing such new Deposited Securities. Upon the occurrence of any change or other event covered by this Section with respect
to the Deposited Securities, the Depositary shall give notice thereof in writing to all Owners if the event affects holdings of American Depositary Shares. Notwithstanding the foregoing, in the event that any securities so received may not be
lawfully distributed to some or all Owners, the Depositary may, following consultation with the Company to the extent practicable, sell such securities at public or private sale, at such place or places and upon such terms as it may deem proper, and
may allocate the net proceeds of such sale for the account of the Owners otherwise entitled to such securities upon an averaged or other practicable basis without regard to any distinctions among such Owners and distribute the net proceeds so
allocated to the extent practicable as in the case of a distribution received in cash pursuant to Section 4.01. 

  
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 SECTION 4.09. Reports. 

The Depositary shall make available for inspection by Owners at its Corporate Trust Office any reports, notices and other communications,
including any proxy solicitation material, received from the Company which are both (a) received by the Depositary, the Custodian, or a nominee of either as the holder of the Deposited Securities and (b) made generally available to the
holders of such Deposited Securities by the Company, it being understood that the Company will initially provide Brazilian shareholders with such reports, notices and communications in Portuguese and will provide the Depositary with English
translations thereof as promptly as practicable thereafter. If requested in writing by the Company, the Depositary shall also, promptly upon receipt from the Company, send to the Owners copies of reports, notices and communications furnished by the
Company pursuant to Section 5.06. Any such reports, notices and other communications will be furnished in English or English language versions or summaries in English will be prepared when so required pursuant to any regulations of the
Commission. 
 SECTION 4.10. Lists of Owners. 
 As promptly as practicable upon request by the Company, the Depositary shall furnish the Company with a list, as of a recent date, of the names, addresses and holdings of American Depositary Shares by all
persons in whose names Receipts are registered on the transfer books of the Depositary and of all such persons who received such Receipts pursuant to a Pre-Release under Section 2.09 hereof. 

SECTION 4.11. Withholding. 
 In connection with any dividend or other distribution to Owners, the Company or its agent will remit to the appropriate governmental authority or agency all amounts (if any) required under applicable law
to be withheld and remitted by the Company or such agent and owing to such governmental authority or agency by the Company or such agent; and the Depositary and the Custodian will remit to the appropriate governmental authority or agency all amounts
(if any) required under applicable law to be withheld and remitted by the Depositary or the Custodian and owing to such authority or agency by the Depositary or the Custodian. The Depositary shall forward to the Company or its agent such information
from its records in relation to withholding from a dividend or other distribution on Deposited Securities as the Company may reasonably request to enable the Company or its agent to file necessary reports with governmental authorities or agencies,
and the Company and its agent shall forward to the Depositary such information from its records in relation to withholding from a dividend or other distribution on Deposited Securities as the Depositary may reasonably request to enable the
Depositary to file necessary reports with governmental 

  
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authorities or agencies. In the event that the Depositary determines that any dividend or other distribution in property other than cash (including Shares and rights to subscribe therefor) is
subject to any tax or other governmental charge which the Depositary is obligated to withhold, the Depositary may (after consultation with the Company to the extent practicable) by public or private sale dispose of all or a portion of such property
(including Shares and rights to subscribe therefor) in such amounts and in such manner as the Depositary deems necessary and practicable to withhold any such taxes or charges and the Depositary shall distribute the net proceeds of any such sale
after deduction of such taxes or charges to the Owners entitled thereto in proportion to the number of American Depositary Shares held by them respectively, and the Depositary shall distribute any unsold balance of such property, all in accordance
with applicable provisions of this Deposit Agreement. 
  

	ARTICLE 5.	THE DEPOSITARY, THE CUSTODIAN AND THE COMPANY. 

 SECTION 5.01. Maintenance of Office and Transfer Books by the Depositary. 

Until termination of this Deposit Agreement in accordance with its terms, the Depositary shall maintain in the Borough of Manhattan, The
City of New York, facilities for the execution and delivery, registration, registration of transfers, combinations and split-ups and surrender of Receipts in accordance with the provisions of this Deposit Agreement. 

The Depositary shall keep in such New York City facilities books for the registration of Receipts and transfers, combinations and
split-ups of Receipts which at all reasonable times shall be open for inspection by the Company and the Owners; provided, however, that such inspection shall not be for the purpose of communicating with Owners in the interest of a
business or object other than the business of the Company or a matter related to this Deposit Agreement or the Receipts. The Depositary may close the transfer books at any time or from time to time when transfer agents located in The City of New
York generally close their transfer books, and at any other time, when reasonably deemed expedient by the Depositary in connection with the performance of its duties hereunder, following consultation with the Company to the extent practicable and
with written notice to the Company as promptly as practicable if prior consultation is not practicable, or at the request of the Company. 
 If any Receipts or the American Depositary Shares evidenced thereby are listed or traded on one or more stock exchanges in the United States, the Depositary shall act as Registrar or, upon notice to the
Company, appoint a Registrar or, one or more co-registrars for registry of such Receipts in accordance with any requirements of such exchange or exchanges and to keep books for the registration of Receipts and transfers, combinations and split-ups
of Receipts as provided in this Section 5.01. Such Registrar or co-registrars may be removed and a substitute or substitutes appointed by the Depositary, upon notice to or at the request of the Company. The Depositary shall cause each

  
 25 

 
Registrar or co-registrar appointed under this Section 5.01 to give notice in writing to the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this
Deposit Agreement. 
 SECTION 5.02. Prevention or Delay in Performance by the Depositary or the Company. 

Neither the Depositary nor the Company nor any of their respective officers, directors, employees, agents or affiliates shall incur any
liability to any Owner or Holder (i) if by reason of any provision of any present or future law or regulation of the United States or any other country, or of any governmental or regulatory authority or stock exchange, or by reason of any
provision, present or future, of the articles of association or similar document of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act
of God or war or terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from, or be subject to any civil or criminal penalty on account of, doing or performing any act or thing
which by the terms of this Deposit Agreement or the Deposited Securities it is provided shall be done or performed, (ii) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms
of this Deposit Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement, (iv) for the inability of any Owner or Holder to
benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Owners or Holders, or (v) for any special,
consequential or punitive damages for any breach of the terms of this Deposit Agreement. Where, by the terms of a distribution pursuant to Section 4.01, 4.02 or 4.03, or an offering or distribution pursuant to Section 4.04, or for any
other reason, such distribution or offering may not be made available to Owners, and the Depositary may not dispose of such distribution or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary
shall not make such distribution or offering, and shall allow any rights, if applicable, to lapse. 
 SECTION 5.03.
Obligations of the Depositary, the Custodian and the Company. 
 The Company assumes no obligation nor shall it be
subject to any liability under this Deposit Agreement to any Owner or Holder, except that the Company agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith. 

Each of the Company and its agents and their respective officers, directors, employees and affiliates assumes no obligation nor shall it
be subject to any liability under this Deposit Agreement to the Custodian or any agent of the Depositary or the Custodian, except under Section 5.08. 

  
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 The Depositary assumes no obligation nor shall it be subject to any liability under this
Deposit Agreement to any Owner or Holder (including, without limitation, liability with respect to the validity or worth of the Deposited Securities), except that the Depositary agrees to perform its obligations specifically set forth in this
Deposit Agreement without negligence or bad faith. 
 Neither the Depositary nor the Company shall be under any obligation to
appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares on behalf of any Owner or Holder or any other person. 

Neither the Depositary nor the Company shall be liable for any action or nonaction by it in reliance upon the advice of or information
from legal counsel, accountants, any person presenting Shares for deposit, any Owner or any other person believed by it in good faith to be competent to give such advice or information. 

Each of the Depositary and its agents and the Company and its agents may rely and shall be protected in acting upon notice, request,
direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. 

The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or
omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its
obligations without negligence or bad faith while it acted as Depositary. 
 Neither the Company nor the Depositary shall be
liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise. 

The Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, or for the
manner in which any such vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith. 
 Except as otherwise provided in this Deposit Agreement, the Depositary will not release any information regarding the Company without prior written approval from the Company; provided,
however, that the Depositary may release, without prior approval from the Company, information made publicly available by the Company if the form and substance of such information has not been altered or modified in any way other than by the
Company. 

  
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 No disclaimer of liability under the Securities Act of 1933 is intended by any provision of
this Deposit Agreement. 
 SECTION 5.04. Resignation and Removal of the Depositary; Appointment of Successor Depositary.

 The Depositary may at any time resign as Depositary hereunder by written notice of its election so to do delivered to the
Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided. 
 The Depositary may at any time be removed by the Company by 60 days prior written notice of such removal, to become effective upon the later of (i) the 60th day after delivery of the notice to the
Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided. 
 In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its reasonable best efforts to appoint a successor depositary, which shall be a bank or trust company
having an office in the Borough of Manhattan, The City of New York; provided, however, that in the case of a resignation by the Depositary, the Company’s “best efforts” obligation to appoint a replacement depositary
shall be limited to an appointment which is on terms no less favorable than those contained herein and at no greater expense as set forth in Section 5.09 hereto. Every successor depositary shall execute and deliver to its predecessor and to the
Company an instrument in writing accepting its appointment hereunder, satisfactory in form and substance to the Company, and thereupon such successor depositary, without any further act or deed, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor; however, such predecessor, upon payment of all sums due to it from the Company and on the written request of the Company, shall execute and deliver an instrument satisfactory in form and substance to the
Company transferring to such successor all rights and powers of such predecessor hereunder, shall duly assign, transfer and deliver all right, title and interest in the Deposited Securities to such successor, and shall deliver to such successor all
materials necessary to enable the successor depositary to carry out the responsibilities of the Depositary hereunder, including, but not limited to, a list of the Owners of all outstanding Receipts. Any such successor depositary shall promptly mail
notice of its appointment to the Owners. Notwithstanding the foregoing, any resignation or removal and appointment of a successor Depositary shall not relieve the prior depositary or the Company from its obligations and liabilities pursuant to
Section 5.08. 
 Any corporation into or with which the Depositary may be merged, converted or consolidated shall be the
successor of the Depositary without the execution or filing of any document or any further act, it being understood that the Company shall be informed in writing of such an event. 

  
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 SECTION 5.05. The Custodian. 

The Custodian or its successor, which shall be an accredited intermediary acting through a specified office located in São Paulo,
in acting hereunder shall be subject at all times and in all respects to the directions of the Depositary and shall be responsible solely to it. The Custodian may resign and be discharged from its duties hereunder by notice of such resignation
delivered to the Depositary at least 30 days prior to the date on which such resignation is to become effective. If the Depositary receives notice of the resignation of the Custodian and, upon the effectiveness of such resignation there would be no
Custodian acting hereunder, the Depositary shall, promptly after receiving such notice, after consultation with the Company to the extent practicable, appoint a substitute custodian, which shall be an accredited intermediary acting through a
specified office located in São Paulo and which shall thereafter be the Custodian hereunder. The Depositary in its discretion, after consultation with the Company to the extent practicable, may appoint a substitute custodian, which shall be
an accredited intermediary acting through a specified office located in São Paulo, which shall thereafter be the Custodian hereunder. Upon demand of the Depositary, the Custodian shall transfer all Deposited Securities held by it and all
other books and records maintained by it with respect to its function as the Custodian hereunder as are requested of it to the substitute custodian. The Depositary shall cause the substitute custodian, forthwith upon its appointment, to deliver to
the Depositary an acceptance of such appointment in form and substance satisfactory to the Depositary. Promptly upon any such change, the Depositary shall give notice in writing to the Company of the name, the address and the appointment of a
Custodian not named in Receipts. 
 The Depositary agrees with the Company that at no time shall there be more than one
Custodian acting in connection with this Deposit Agreement. 
 Upon the appointment of any successor depositary hereunder, the
Custodian then acting hereunder shall forthwith become, without any further act or writing, the agent hereunder of such successor depositary and the appointment of such successor depositary shall in no way impair the authority of the Custodian
hereunder, but the successor depositary so appointed shall, nevertheless, on the written request of the Custodian or as required by Brazilian law, execute and deliver to the Custodian all such instruments as may be proper to give to the Custodian
full and complete power and authority as agent hereunder of such successor depositary. 
 SECTION 5.06. Notices and
Reports. 
 On or before the first date on which the Company gives notice, by publication or otherwise, of any meeting of
holders of Shares or other Deposited Securities, or of any adjourned meeting of such holders, or of the taking of any action in respect of any cash or other distributions or the offering of any rights, the Company agrees to transmit to the
Depositary and the Custodian, as soon as practicable, a copy of the notice thereof in English, but otherwise in the form given or to be given to holders of Shares or other Deposited Securities. 

  
 29 

 The Company shall furnish to the Depositary in English annual reports (including audited
consolidated financial statements), semi-annual reports (including unaudited interim consolidated financial information), and copies or summaries in English of any other reports, notices and communications that are made generally available by the
Company to holders of Deposited Securities. At the written request of the Company, the Depositary will arrange for the mailing of copies of such annual and semi-annual reports and copies or summaries of any other such reports, notices and
communications to all Owners. The Company will timely provide the Depositary with such quantity of such reports and summaries as shall be requested by the Depositary from time to time in order for the Depositary to effect such mailings. 

SECTION 5.07. Issuance or Deposit of Additional Shares, etc. 

If the Company or any affiliate of the Company determines to make any issuance or distribution of (1) additional Shares,
(2) rights to subscribe for Shares, (3) securities convertible into Shares, or (4) rights to subscribe for such securities (each a “Distribution”), the Company shall notify the Depositary in writing in English as promptly as
practicable and in any event before the Distribution starts and, if requested in writing by the Depositary, the Company shall promptly furnish to the Depositary a written opinion from U.S. counsel for the Company that is reasonably satisfactory to
the Depositary, stating whether or not the Distribution requires, or, if made in the United States, would require, registration under the Securities Act of 1933. If, in the opinion of that counsel, the Distribution requires, or, if made in the
United States, would require, registration under the Securities Act of 1933, that counsel shall furnish to the Depositary a written opinion as to whether or not there is a registration statement under the Securities Act of 1933 in effect that will
cover that Distribution. 
 The Company agrees with the Depositary that neither the Company nor any company controlled by,
controlling or under common control with the Company will at any time deposit any Shares, either originally issued or previously issued and reacquired by the Company or any such affiliate, unless a registration statement is in effect as to such
Shares under the Securities Act of 1933. 
 Nothing in this Section 5.07 or elsewhere in this Deposit Agreement shall
create any obligation on the part of the Company or the Depositary to file a registration statement in respect of any such securities or rights or to endeavor to have such a registration statement declared effective. To the extent the Company in its
discretion deems it necessary or advisable in order to avoid any requirement to register such additional securities under the Securities Act of 1933, it may prevent Owners in the United States from purchasing any such additional securities (whether
pursuant to preemptive rights or otherwise) and direct the Depositary not to accept certain Shares for deposit for such period of time following the issuance of such additional securities and to adopt such other specific measures as the Company may
reasonably request in writing. 

  
 30 

 SECTION 5.08. Indemnification. 

The Company agrees to indemnify the Depositary and the Custodian and any agent of the Depositary or the Custodian appointed hereunder and
the respective officers, directors, and employees thereof (the “indemnified persons”) against, and hold each of them harmless from, any liability or expense (including, but not limited to, the reasonable fees and expenses of counsel) which
may arise out of or in connection with acts performed or omitted in accordance or in connection with the provisions of this Deposit Agreement and of the Receipts, as the same may be amended, modified or supplemented from time to time, (i) by
such indemnified persons except for any liability or expense arising out of the negligence or bad faith of any of them, or (ii) by the Company or any of its agents (other than the indemnified persons), and their respective officers, directors
and employees authorized to act on their behalf. 
 The indemnities contained in the preceding paragraph shall not extend to any
liability or expense which arises solely and exclusively out of a Pre-Release (as defined in Section 2.09) of a Receipt or Receipts in accordance with Section 2.09 and which would not otherwise have arisen had such Receipt or Receipts not
been the subject of a Pre-Release pursuant to Section 2.09; provided, however, that the indemnities provided in the preceding paragraph shall apply to any liability or expense (i) to the extent that such liability or expense
would have arisen had a Receipt or Receipts not been the subject of a Pre-Release, or (ii) which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any registration statement, proxy statement,
prospectus (or placement memorandum), or preliminary prospectus (or preliminary placement memorandum) relating to the offer or sale of American Depositary Shares, except to the extent any such liability or expense arises out of (i) information
relating to the Depositary or the Custodian (other than the Company), as applicable, furnished in writing and not materially changed or altered by the Company expressly for use in any of the foregoing documents, or, (ii) if such information is
provided, the failure to state a material fact necessary to make the information provided not misleading. 
 The Depositary
agrees to indemnify the Company, its officers, its directors, employees, agents and affiliates against and hold them harmless from any liability or expense (including, but not limited to, the reasonable fees and expenses of counsel) which may arise
out of acts performed or omitted by the Depositary or any Registrar or Custodian or their respective officers, directors, employees, agents and affiliates due to their respective negligence or bad faith. 

If an action, proceeding (including, but not limited to, any governmental investigation), claim or dispute (collectively, a
“Proceeding”) in respect of which indemnity may be sought by either party is brought or asserted against the other party, the party seeking indemnification (the “Indemnitee”) shall as promptly as practicable (and in

  
 31 

 
no event more than twenty (20) days after receipt of notice of such Proceeding) notify in writing the party obligated to provide such indemnification (the “Indemnitor”) of such
Proceeding. The failure of the Indemnitee to so notify the Indemnitor shall not impair the Indemnitee’s ability to seek indemnification from the Indemnitor (but only for costs, expenses and liabilities incurred after such notice) unless such
failure adversely affects the Indemnitor’s ability to adequately oppose or defend such Proceeding. Upon receipt of such notice from the Indemnitee, the Indemnitor shall be entitled to participate in such Proceeding and, to the extent that it
shall so desire and provided no conflict of interest exists as described in subclause (b) below, or there are no other defenses available to Indemnitee as specified in subclause (b) below, to assume the defense thereof with counsel
reasonably satisfactory to the Indemnitee (in which case all attorney’s fees and expenses shall be borne by the Indemnitor and the Indemnitor shall in good faith defend the Indemnitee). The Indemnitee shall have the right to employ separate
counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be borne by the Indemnitee unless (a) the Indemnitor agrees in writing to pay such fees and expenses, (b) the
Indemnitee shall have reasonably and in good faith concluded that there is a conflict of interest between the Indemnitor and the Indemnitee in the conduct of the defense of such action, including but not limited to that there may be legal defenses
available to the Indemnitee that are different from or in addition to those available to the Indemnitor, or (c) the Indemnitor fails, within ten (10) days prior to the date the first response or appearance is required to be made in such
Proceeding, to assume the defense of such Proceeding with counsel reasonably satisfactory to the Indemnitee. No compromise or settlement of such Proceeding may be effected by either party without the other party’s consent unless (i) there
is no finding or admission of any violation of law and no material adverse effect on any other claims that may be made against such other party and (ii) the sole relief provided is monetary damages that are paid in full by the party seeking the
compromise or settlement. Neither party shall have any liability with respect to any compromise or settlement effected without its consent, which shall not be unreasonably withheld. The Indemnitor shall have no obligation to indemnify and hold
harmless the Indemnitee from any loss, expense or liability incurred by the Indemnitee as a result of a default judgment entered against the Indemnitee unless such judgment was entered after the Indemnitor agreed, in writing, to assume the defense
of such Proceeding. 
 The obligations set forth in this Section 5.08 shall survive the termination of this Deposit
Agreement and the succession or substitution of any indemnified person. 
 SECTION 5.09. Charges of Depositary.

 The Company will not pay any fees, expenses or other charges of the Depositary or of any Registrar except in accordance with
agreements in writing entered into between the Depositary and the Company from time to time. The Depositary shall present its statement for such charges and expenses to the Company once every three months. Except as otherwise specifically provided
in the following paragraph, the fees, charges and expenses of the Custodian are for the sole account of the Depositary. 

  
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 The following charges shall be incurred by any party depositing or withdrawing Shares or by
any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the
American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.03), or by Owners, as applicable: (1) taxes and other governmental charges, (2) such registration fees as may from
time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Share Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or
its nominee on the making of deposits or withdrawals hereunder, (3) such cable, telex and facsimile transmission expenses as are expressly provided in this Deposit Agreement, (4) such expenses as are incurred by the Depositary in the
conversion of foreign currency pursuant to Section 4.05, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 and the
surrender of American Depositary Shares pursuant to Section 2.05 or 6.02, (6) a fee of $.02 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to this Deposit Agreement, including, but not
limited to Sections 4.01 through 4.04 hereof, (7) a fee for the distribution of securities pursuant to Section 4.02, such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to
above which would have been charged as a result of the deposit of such securities (for purposes of this clause 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners),
(8) in addition to any fee charged under clause 6, a fee of $.02 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in clause 9 below, and (9) any other charges
payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other Deposited Securities (which charge shall be assessed against
Owners as of the date or dates set by the Depositary in accordance with Section 4.06 and shall be payable at the sole discretion of the Depositary by billing such Owners for such charge or by deducting such charge from one or more cash
dividends or other cash distributions). 
 The Depositary may collect any of its fees by deduction from any cash distribution
payable to Owners that are obligated to pay those fees. 
 The Depositary, subject to Section 2.09 hereof and applicable
laws , rules and regulations, may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares. 

  
 33 

 SECTION 5.10. Retention of Depositary Documents. 

Except as otherwise explicitly provided herein, the Depositary is authorized to destroy those documents, records, bills and other data
compiled during the term of this Deposit Agreement at the times permitted by the laws or regulations governing the Depositary unless the Company requests that such papers be retained for a longer period or turned over to the Company or to a
successor depositary. 
 SECTION 5.11. Exclusivity. 

Subject to the provisions of Section 5.04, the Company agrees not to appoint any other depositary for issuance of American or global
depositary shares or receipts so long as The Bank of New York Mellon is acting as Depositary hereunder. 
  

	ARTICLE 6.	AMENDMENT AND TERMINATION. 

SECTION 6.01. Amendment. 
 The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended by agreement in writing between the Company and the Depositary in any respect which
they may deem necessary or desirable. Any amendment which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable, telex or facsimile transmission costs, delivery costs or other such
expenses), or which shall otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding Receipts until the expiration of 30 days after written notice of such amendment shall have been mailed to
the Owners of outstanding Receipts. Every Owner at the time any amendment so becomes effective shall be deemed, by continuing to hold such Receipt, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby.
In no event shall any amendment impair the right of the Owner of any Receipt to surrender such Receipt and receive therefor the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.

 SECTION 6.02. Termination. 
 The Depositary shall at any time at the direction of the Company terminate this Deposit Agreement by mailing notices of such termination to the Owners of all Receipts then outstanding at least 30 days
prior to the date fixed in such notice for such termination. The Depositary may likewise terminate this Deposit Agreement (upon 30 days’ prior written notice of such termination to the Company and the Owners of all Receipts then outstanding) if
at any time 60 days after the Depositary shall have delivered to the Company a written notice of its resignation sent by registered mail, return receipt requested, a successor depositary shall not have been appointed and accepted its appointment as
provided in Section 5.04. The Depositary shall mail notice of such 

  
 34 

 
termination to the Owners of all Receipts then outstanding at least 30 days prior to the date fixed in such notice for such termination. On and after the date of termination, each Owner shall,
upon (i) surrender of each of its Receipts at the Depositary’s Corporate Trust Office, (ii) payment of the fees of the Depositary for the surrender of Receipts provided herein and (iii) payment of any applicable taxes and
governmental charges, be entitled to delivery, to him or upon his order, of the whole number of Deposited Securities represented by the American Depositary Shares evidenced by such Receipts and to the net proceeds of the sale of any fractional
Deposited Securities represented thereby. If any Receipts shall remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers, combinations and split-ups of Receipts, shall suspend the
distribution of dividends to the Owners thereof, shall not accept deposits of Shares (and shall instruct the Custodian to act accordingly), and shall not give any further notices or perform any further acts under this Deposit Agreement, except that
the Depositary shall continue to collect dividends and other distributions pertaining to Deposited Securities, shall sell property and rights and convert Deposited Securities into cash as provided in this Deposit Agreement, and shall continue to
deliver Deposited Securities, together with any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, in exchange for Receipts surrendered to the Depositary (after deducting,
in each case, the fee of the Depositary for the surrender of a Receipt, any expenses for the account of the Owner of such Receipt in accordance with the terms and conditions of this Deposit Agreement, and any applicable taxes or governmental
charges). 
 At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited
Securities then held hereunder and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners
which have not theretofore surrendered their Receipts, such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds. After making such sale, the Depositary shall be discharged from all obligations under this
Deposit Agreement, except to account for such net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of a Receipt, any expenses for the account of the Owner of such Receipt in accordance with the
terms and conditions of this Deposit Agreement, and any applicable taxes or governmental charges) and except for its obligations under Section 5.08 hereof. Upon the termination of this Deposit Agreement, the Company shall be discharged from all
obligations under this Deposit Agreement except for its obligations to the Depositary under Sections 5.08 and 5.09 hereof. 

  
 35 

	ARTICLE 7.	MISCELLANEOUS. 

 SECTION
7.01. Counterparts. 
 This Deposit Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and all of such counterparts shall constitute one and the same instrument. Copies of this Deposit Agreement shall be filed with the Depositary and the Custodian and shall be open to inspection by any Owner during business hours.

 SECTION 7.02. No Third Party Beneficiaries. 
 This Deposit Agreement is for the exclusive benefit of the parties hereto and shall not be deemed to give any legal or equitable right, remedy or claim whatsoever to any other person. 

SECTION 7.03. Severability. 
 In case any one or more of the provisions contained in this Deposit Agreement or in the Receipts should be or become invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein or therein shall in no way be affected, prejudiced or disturbed thereby. 
 SECTION 7.04. Owners and Holders as Parties; Binding Effect. 
 The Owners
and Holders of Receipts from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions hereof and of the Receipts by acceptance thereof. 

SECTION 7.05. Notices. 
 Any and all notices to be given to the Company shall be deemed to have been duly given if personally delivered or sent by mail or cable, air courier or facsimile transmission confirmed by registered mail,
addressed to the Chief Financial Officer, Ambev S.A., Rua Dr. Renato Paes de Barros, 1017, 4th Floor, 04530-001, São Paulo, SP, Brazil or any other place of which the Company has notified the Depositary. The Company will give notice to the Depositary of any change in the location of its
principal executive office. 
 Any and all notices to be given to the Depositary shall be deemed to have been duly given if in
English and personally delivered or sent by mail or cable, air courier or facsimile transmission confirmed by letter, addressed to The Bank of New York Mellon at its Corporate Trust Office located at 101 Barclay Street, New York, New York 10286,
Attention: ADR Administration, telephone number (212) 815-2089, telecopy number (212) 571-3050, or any other place to which the Depositary may have transferred its Corporate Trust Office. The Depositary will give notice to the Company of
any change in the location of its Corporate Trust Office. 

  
 36 

 Any and all notices to be given to any Owner shall be deemed to have been duly given if
personally delivered or sent by mail or cable, air courier or facsimile transmission confirmed by letter, addressed to such Owner at the address of such Owner as it appears on the transfer books for Receipts of the Depositary, or, if such Owner
shall have filed with the Depositary a written request that notices intended for such Owner be mailed to some other address, at the address designated in such request. 
 Delivery of a notice sent by mail or cable, air courier or facsimile transmission shall be deemed to be effected at the time when a duly addressed letter containing the same (or a confirmation thereof in
the case of a cable, air courier or facsimile transmission) is received. Notices sent by registered mail or personally delivered will be deemed to have been duly given on the date on which signed for by or on behalf of the addressee. The Depositary
or the Company may, however, act upon any cable or facsimile transmission received by it, notwithstanding that such cable or facsimile transmission shall not subsequently be confirmed by letter as aforesaid. 

SECTION 7.06. Governing Law. 
 This Deposit Agreement and the Receipts shall be interpreted and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by the laws of the State of New York without regard
to the principles of conflicts of laws thereof. It is understood that, notwithstanding any present or future provision of the laws of the State of New York, the rights of holders of Shares and other Deposited Securities and the obligations and
duties of the Company in respect of such holders, as such, shall be governed by the laws of Brazil (or, if applicable, such other law as may govern Deposited Securities). 
 SECTION 7.07. Compliance With U.S. Securities Laws. 
 Notwithstanding any
terms of this Deposit Agreement to the contrary, each of the Company and the Depositary agrees that it will not exercise any rights it has under the Deposit Agreement or the Receipts to permit the withdrawal or delivery of Deposited Securities in a
manner which would violate the United States securities laws, including, but not limited to, Section I.A(1) of the General Instructions to the Form F-6 Registration Statement, as amended from time to time, under the Securities Act of 1933.

 SECTION 7.08. Assignment. 
 Unless otherwise agreed in writing, the Deposit Agreement may not be assigned by either the Company or the Depositary. 

  
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 SECTION 7.09. Effective Date. 

The Company and the Depositary hereby agree that the effective date (the “Effective Date”) of this Deposit Agreement shall be
the date on which the Commission declares effective the Form F-6 registration statement to which this Deposit Agreement is attached as Exhibit 1. 

  
 38 

 IN WITNESS WHEREOF, AMBEV S.A. and THE BANK OF NEW YORK MELLON have
duly executed this agreement as of the day and year first set forth above and all Owners and Holders shall become parties hereto upon acceptance by them of Receipts issued in accordance with the terms hereof or any interest therein. 

 

			
	AMBEV S.A.
		
	By:	 	  

		 	Name:
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
	
	 THE BANK OF NEW YORK MELLON,
 as Depositary

		
	By:	 	  

		 	Name:
		 	Title:

  
 39 

 EXHIBIT A 

 

					
		 		 	 AMERICAN DEPOSITARY SHARES
 (Each American Depositary Share represents one deposited Share)

 THE BANK OF NEW YORK MELLON 
 AMERICAN DEPOSITARY RECEIPT 
 FOR COMMON SHARES 

OF 

AMBEV S.A. 

(INCORPORATED UNDER THE LAWS OF BRAZIL) 
 The Bank of New York Mellon as depositary (hereinafter called the “Depositary”), hereby certifies that
                    , or registered assigns IS THE OWNER OF
                     

AMERICAN DEPOSITARY SHARES 
 representing deposited common shares (herein called “Shares”) of Ambev S.A., a company incorporated under the laws of Brazil (herein called the “Company”). At the date hereof, each
American Depositary Share represents one Share deposited or subject to deposit under the deposit agreement at the principal São Paulo office of Banco Bradesco S.A. (herein called the “Custodian”). The Depositary’s Corporate
Trust Office is located at a different address than its principal executive office. Its Corporate Trust Office is located at 101 Barclay Street, New York, N.Y. 10286, and its principal executive office is located at One Wall Street, New York, N.Y.
10286. 
 THE DEPOSITARY’S CORPORATE TRUST OFFICE ADDRESS IS 

101 BARCLAY STREET, NEW YORK, N.Y. 10286 

 1. THE DEPOSIT AGREEMENT. 
 This American Depositary Receipt is one of an issue (herein called “Receipts”), all issued and to be issued upon the terms and conditions set forth in the deposit agreement, dated as of
                    , 2013, as the sane may be amended from time to time in accordance with its terms (herein called the “Deposit
Agreement”), among the Company, the Depositary, and all Owners and Holders from time to time of American Depositary Shares issued thereunder, each of whom by accepting American Depositary Shares agrees to become a party thereto and become bound
by all the terms and conditions thereof. The Deposit Agreement sets forth the rights of Owners of the Receipts and the rights and duties of the Depositary in respect of the Shares deposited thereunder and any and all other securities, property and
cash from time to time received in respect of such Shares and held thereunder (such Shares, securities, property, and cash are herein called “Deposited Securities”). Copies of the Deposit Agreement are on file at the Depositary’s
Corporate Trust Office in New York City and at the office of the Custodian. 
 The statements made on the face and reverse of
this Receipt are summaries of certain provisions of the Deposit Agreement and are qualified by and subject to the detailed provisions of the Deposit Agreement, to which reference is hereby made. Capitalized terms defined in the Deposit Agreement and
not defined herein shall have the meanings set forth in the Deposit Agreement. 
 2. SURRENDER OF RECEIPTS AND WITHDRAWAL OF SHARES.

 Upon surrender of this Receipt at the Corporate Trust Office of the Depositary for the purpose of withdrawal of a whole
number of Deposited Securities represented thereby, and upon payment of the fee of the Depositary for the cancellation of Receipts as provided in Section 5.09 of the Deposit Agreement and subject to the terms and conditions of the Deposit
Agreement, the Company’s By-laws and the Deposited Securities, the Owner of such Receipt shall be entitled to delivery of the whole number of Shares and the number of any other Deposited Securities represented by the American Depositary Shares
evidenced thereby and so withdrawn to an account designated by such Owner and to delivery at the Corporate Trust Office of the Depositary of a new Receipt evidencing any Shares and other Deposited Securities not withdrawn. 

3. TRANSFERS, SPLIT-UPS, AND COMBINATIONS OF RECEIPTS. 
 Subject to the terms and conditions of the Deposit Agreement the transfer of this Receipt is registrable on the books of the Depositary at its Corporate Trust Office by the Owner hereof in person or by a
duly authorized attorney, shall as promptly as practicable, register transfers, upon surrender of this Receipt properly endorsed for transfer or accompanied by proper instruments of transfer, and duly stamped, as may be required by the laws of the
State of New York and of the United 

  
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States of America. Subject to the terms and conditions of the Deposit Agreement, this Receipt may be split into other such Receipts, or may be combined with other such Receipts into one Receipt,
evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered. As a condition precedent to the execution and delivery, registration of transfer, split-up, combination or surrender of any Receipt, the
delivery of any distribution thereon, or the withdrawal of any Deposited Securities, the Depositary, the Company or the Custodian may require payment from the presenter of the Receipt or the depositor of the Shares of a sum sufficient to reimburse
it for any tax or other governmental charge and any stock transfer, registration or conversion fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or Deposited Securities being withdrawn) and
payment of any applicable fees as herein provided, may require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with such regulations, if any, as the Depositary may
establish consistent with the provisions of the Deposit Agreement or this Receipt, including, without limitation, Section 7.07 of the Deposit Agreement. 
 The delivery of Receipts against deposits of Shares generally or against deposits of particular Shares may be suspended and the transfer of Receipts in particular instances may be refused or the
registration of transfer of outstanding Receipts generally may be suspended during any period when the transfer books of the Depositary are closed as permitted by Section 5.01 of the Deposit Agreement, or if any such action is deemed necessary
or advisable by the Company or the Depositary at any time or from time to time because of any requirement of law or of any government or governmental or regulatory body or commission or following receipt of notification from the Company of the
suspension of the quotation of the Shares in Brazil, or under any provision of the Deposit Agreement or the By-laws of the Company, or for any other reason, subject to Section 7.07 of the Deposit Agreement. 

The surrender of outstanding Receipts and withdrawal of Deposited Securities may not be suspended except in the case of
(i) temporary delays caused by closing the transfer books of the Depositary, Company or the Share Registrar or the deposit of Shares in connection with voting at a shareholders’ meeting or the payment of dividends, (ii) the payment of
fees, taxes and similar charges and (iii) compliance with any United States or foreign laws or governmental regulations relating to the Receipts or to the withdrawal of the Deposited Securities. The Depositary and the Custodian will comply with
reasonable written instructions from the Company requesting that the Depositary and the Custodian not accept for deposit under the Deposit Agreement any Shares identified in such instructions in order to facilitate the Company’s compliance with
United States federal securities laws, any provision of the Company’s By-laws or Brazilian law. Without limitation of the foregoing, neither the Depositary nor the Custodian shall accept for deposit under the Deposit Agreement any Shares
(i) which, to the actual knowledge of the Depositary, 

  
 A-3

 
are required to be registered under the Securities Act of 1933 prior to public sale in the United States, unless a registration statement is in effect as to such Shares or (ii) the deposit
of which would, to the actual knowledge of the Depositary, infringe any provisions of Brazilian law. 
 4. LIABILITY OF OWNER FOR TAXES.

 If any tax or other governmental charge shall become payable with respect to any Receipt or any Deposited Securities
represented by any Receipt, such tax or other governmental charge shall be payable by the Owner of such Receipt to the Depositary. The Depositary may refuse, and the Company shall be under no obligation, to effect registration of transfer of all or
part of such Receipt or any withdrawal of Deposited Securities represented thereby until such payment is made, and may withhold any dividends or other distributions or, after attempting by reasonable means to notify such Owner, may sell for the
account of the Owner thereof any part or all of the Deposited Securities represented by such Receipt, and may apply such dividends or other distributions or the proceeds of any such sale to payment of such tax or other governmental charge, the Owner
of such Receipt remaining liable for any deficiency. 
 5. WARRANTIES ON DEPOSIT OF SHARES. 

Every person depositing Shares under the Deposit Agreement, including every person depositing Shares on behalf of an owner of Shares,
shall be deemed thereby to represent and warrant that (i) such Shares are validly issued, fully paid and non-assessable, (ii) the person making such deposit is duly authorized so to do, (iii) such Shares are not “restricted
securities” as defined in Rule 144 under the Securities Act of 1933, (iv) such Shares are free and clear of any lien, encumbrance, security interest, charge, mortgage, pledge or restriction on transfer, (v) such Shares are free of any
pre-emptive rights of the holders of outstanding Shares, and (vi) such Shares include all rights to receive dividends thereon. Such representations and warranties shall survive the deposit of such Shares and issuance of Receipts in respect
thereof. 
 6. PROVIDING PROOFS, CERTIFICATES, AND OTHER INFORMATION. 

Any person presenting Shares for deposit or any Owner may be required from time to time to provide such proof of (a) citizenship,
residence, exchange control approval or payment of taxes and other governmental charges and compliance with all applicable laws and regulations governing Deposited Securities and the terms of the Deposit Agreement and (b) the identity of any
person legally or beneficially interested in the Receipt and Shares and the nature of such interest, such information relating to the registration of the Shares presented for deposit on the books of the Company or the Share Registrar, if applicable
or to provide such other information, to execute such certificates and to make such representations and warranties, as the Depositary may reasonably deem necessary or proper or as the Company reasonably may require by written request to the

  
 A-4

 
Depositary or the Custodian. The Depositary may withhold the delivery or registration of transfer of any Receipt, the distribution of any dividend or other distribution or sale of rights or of
the proceeds thereof, or the delivery of any Deposited Securities until such proof or other information is provided, such certificates are executed or such representations and warranties are made pertaining to such Receipt to the satisfaction of the
Company and the Depositary. 
 The Depositary shall provide the Company, upon the Company’s request and in a timely manner,
with copies of any information or other material which it receives pursuant to Section 3.01 of the Deposit Agreement, to the extent that disclosure is permitted under applicable law. Each Owner agrees to provide any information requested by the
Company or the Depositary pursuant to Section 3.01 of the Deposit Agreement. 
 No Share shall be accepted for deposit
unless accompanied by evidence satisfactory to the Depositary that any necessary approval has been granted by any governmental body in Brazil which is then performing the function of the regulation of currency exchange. 

7. CHARGES OF DEPOSITARY. 

The Company will not pay any fees, expenses or other charges of the Depositary or of any Registrar except in accordance with agreements in
writing entered into between the Depositary and the Company from time to time. The Depositary shall present its statement for such charges and expenses to the Company once every three months. The fees, charges and expenses of the Custodian are for
the sole account of the Depositary. 
 The following charges, to the extent permitted by applicable law and stock exchange
regulations, shall be incurred by any party depositing or withdrawing Shares or by any party surrendering Receipts or to whom Receipts are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the
Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.03 of the Deposit Agreement), or by Owners, as applicable: (1) taxes and
other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Share Registrar and applicable to transfers of Shares to
or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals under the terms of the Deposit Agreement, (3) such cable, telex and facsimile transmission expenses as are expressly
provided in the Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.05 of the Deposit Agreement, (5) a fee of $5.00 or less per 100 American Depositary
Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.03, 4.03 or 4.04 of the Deposit Agreement and the surrender of American Depositary Shares pursuant to Section 2.05 or 6.02 of the Deposit

  
 A-5

 
Agreement, (6) a fee of $.02 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to the Deposit Agreement, including, but not limited to
Sections 4.01 through 4.04 of the Deposit Agreement, except for distributions of cash dividends, (7) a fee for the distribution of securities pursuant to Section 4.02 of the Deposit Agreement, such fee being in an amount equal to the fee
for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities (for purposes of this clause 7 treating all such securities as if they were Shares) but which
securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under clause 6, a fee of $.02 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable
as provided in clause 9 below, and (9) any other charges payable by the Depositary, any of the Depositary’s agents, including the Custodian, or the agents of the Depositary’s agents in connection with the servicing of Shares or other
Deposited Securities (which charge shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.06 of the Deposit Agreement and shall be payable at the sole discretion of the Depositary by billing
such Owners for such charge or by deducting such charge from one or more cash dividends or other cash distributions). 
 The
Depositary, subject to Section 2.09 of the Deposit Agreement and applicable laws, rules and regulations, may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares. 

8. PRE-RELEASE OF RECEIPTS. 
 Unless requested in writing by the Company to cease doing so, the Depositary may, notwithstanding Section 2.03 of the Deposit Agreement, execute and deliver Receipts prior to the receipt of Shares
pursuant to Section 2.02 of the Deposit Agreement (a “Pre-Release”). The Depositary may, pursuant to Section 2.05 of the Deposit Agreement, deliver Shares upon the receipt and cancellation of Receipts which have been
Pre-Released, whether or not such cancellation is prior to the termination of such Pre-Release or the Depositary knows that such Receipt has been Pre-Released. The Depositary may receive Receipts in lieu of Shares in satisfaction of a Pre-Release.
Each Pre-Release will be (a) preceded or accompanied by a written representation and agreement from the person to whom Receipts or Shares are to be delivered (a “Pre-Releasee”), that such Pre-Releasee, or its customer, (i) as of
the time of such transaction, owns the Shares or Receipts to be remitted, as the case may be, (ii) assigns all beneficial right, title and interest in such Shares or Receipts, as the case may be, to the Depositary in its capacity as such and
for the benefit of the Owners, and (iii) will not take any action with respect to such Shares or Receipts, as the case may be, that is inconsistent with the transfer of beneficial ownership (including, without the consent of the Depositary,
disposing of such Shares or Receipts, as the case may be), other than in satisfaction of such Pre-Release, (b) at all times fully collateralized with cash, U.S. government 

  
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securities or such other collateral as the Depositary determines, in good faith, will provide substantially similar liquidity and security, (c) terminable by the Depositary on not more than
five (5) business days’ notice, and (d) subject to such further indemnities and credit regulations as the Depositary deems appropriate. The Company will not incur any liability to any Owners or holders of a Receipt as a result of
actions taken by the Depositary pursuant to Section 2.09 of the Deposit Agreement. The number of American Depositary Shares which are outstanding at any time as a result of Pre-Release will not normally exceed thirty percent (30%) of the
Shares deposited under the Deposit Agreement; provided, however, that the Depositary reserves the right to disregard such limit from time to time as it deems reasonably appropriate and may, with the prior written consent of the
Company, change such limit for the purposes of general application. The Depositary will also set dollar limits with respect to Pre-Release transactions to be entered into under the Deposit Agreement with any particular Pre-Releasee on a case-by-case
basis as the Depositary deems appropriate. For purposes of enabling the Depositary to fulfill its obligations to the Owners under the Deposit Agreement, the collateral referred to in clause (b) above shall be held by the Depositary as security
for the performance of the Pre-Releasee’s obligations to the Depositary in connection with a Pre-Release transaction, including the Pre-Releasee’s obligation to deliver Shares or Receipts upon termination of a Pre-Release transaction (and
shall not, for the avoidance of doubt, constitute Deposited Securities under the Deposit Agreement). 
 The Depositary may
retain for its own account any compensation received by it in connection with the foregoing. 
 9. TITLE TO RECEIPTS. 

It is a condition of this Receipt that title to this Receipt (and to the American Depositary Shares evidenced thereby), when such Receipt
is properly endorsed or accompanied by proper instruments of transfer, shall be transferable by delivery as a certificated security in accordance with New York law; provided, however, that the Depositary, notwithstanding any notice to
the contrary, may treat the Owner hereof as the absolute owner hereof for the purpose of determining the person entitled to any distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other
purposes and neither the Depositary nor the Company shall have any obligation or be subject to any liability under the Deposit Agreement to any holder of a Receipt unless such holder is the Owner thereof. 

10. VALIDITY OF RECEIPT. 

This Receipt shall not be entitled to any benefits under the Deposit Agreement or be valid or enforceable for any purpose, unless such
Receipt shall have been executed by the Depositary by the manual signature of a duly authorized signatory of the Depositary or, if a Registrar for the Receipts shall have been appointed and the Depositary shall have signed by facsimile signature,
countersigned by the manual signature of a duly authorized officer of the Registrar. 

  
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 11. REPORTS; INSPECTION OF TRANSFER BOOKS. 

The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and accordingly files certain reports
and information with the Securities and Exchange Commission (hereinafter called the “Commission”). Such reports and communications will be available for inspection and copying at the public reference facilities maintained by the Commission
located at 100 F. Street, N.E., Washington, D.C. 20549. 
 The Depositary shall make available for inspection by Owners at its
Corporate Trust Office any reports, notices and other communications, including any proxy solicitation material, received from the Company which are both (a) received by the Depositary, the Custodian, or a nominee of either as the holder of the
Deposited Securities and (b) made generally available to the holders of such Deposited Securities by the Company, it being understood that the Company will initially provide Brazilian shareholders with such reports, notices and communications
in Portuguese and will provide the Depositary with English translations thereof as promptly as practicable thereafter. If requested in writing by the Company, the Depositary shall also, promptly upon receipt from the Company, send to the Owners
copies of reports, notices and communications furnished by the Company pursuant to Section 5.06 of the Deposit Agreement. Any such reports, notices and other communications will be furnished in English or English language versions or summaries
in English will be prepared when so required pursuant to any regulations of the Commission. 
 The Depositary shall keep in such
New York City facilities books for the registration of Receipts and transfers, combinations and split-ups of Receipts which at all reasonable times shall be open for inspection by the Company and the Owners; provided, however, that
such inspection shall not be for the purpose of communicating with Owners in the interest of a business or object other than the business of the Company or a matter related to the Deposit Agreement or the Receipts. The Depositary may close the
transfer books at any time or from time to time when transfer agents located in The City of New York generally close their transfer books, and at any other time, when reasonably deemed expedient by the Depositary in connection with the performance
of its duties hereunder, following consultation with the Company to the extent practicable and with written notice to the Company as promptly as practicable if prior consultation is not practicable, or at the request of the Company. 

  
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 12. DIVIDENDS AND DISTRIBUTIONS. 

Whenever the Depositary or the Custodian shall receive any cash dividend or other cash distribution on any Deposited Securities, the
Depositary shall, after any necessary conversion of such distribution into Dollars pursuant to Section 4.05 of the Deposit Agreement and after fixing a record date pursuant to Section 4.06 of the Deposit Agreement, as promptly as
practicable, distribute dividend checks or otherwise pay or distribute the amount thus received (net of the fees and expenses of the Depositary as provided in Section 5.09 of the Deposit Agreement) to the Owners of Receipts entitled thereto in
proportion to the number of American Depositary Shares held by them respectively; provided, however, that the Depositary shall make appropriate adjustments in the amounts so distributed in respect of any amounts withheld or requested
to be withheld by the Company, the Custodian or the Depositary from any such distribution on account of (i) taxes or other governmental charges including, but not limited to, withholding taxes referred to in Section 4.11 of the Deposit
Agreement, or (ii) reasonable expenses of the Depositary in the conversion of Foreign Currency into Dollars pursuant to Section 4.05 of the Deposit Agreement. The Depositary shall distribute only such amount, however, as can be distributed
without distributing to any Owner a fraction of one cent. Any such fractional amounts shall be rounded to the nearest whole cent and so distributed to Owners entitled thereto. 
 Subject to the provisions of Sections 4.11 and 5.09 of the Deposit Agreement, whenever the Depositary or the Custodian shall receive any distribution other than cash, Shares or rights upon any
Deposited Securities, the Depositary shall, as promptly as practicable, cause the securities or property received by it to be distributed to the Owners, as of the record date fixed pursuant to Section 4.06 of the Deposit Agreement, of Receipts
entitled thereto in proportion to the number of American Depositary Shares held by them as of such date in any manner that the Depositary may, following consultation with the Company, reasonably deem equitable and practicable for accomplishing such
distribution; provided, however, that if the Company shall so direct or if, in the reasonable opinion of the Depositary such distribution cannot be made proportionately among such Owners, or if for any other reason (including but not
limited to any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that such securities must be registered under the Securities Act of 1933 in order to be distributed to Owners) the
Depositary, in its reasonable opinion, deems such distribution not to be feasible, the Depositary may, following consultation with the Company to the extent practicable, adopt such method as it may deem lawful, equitable and practicable for the
purpose of effecting such distribution, including the public or private sale of the securities or other property thus received, or any part thereof, and the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in
Section 5.09 of the Deposit Agreement) shall be as promptly as practicable distributed by the Depositary to the Owners entitled thereto as in the case of a distribution received in cash; provided, however, that any unsold balance
of such securities or property shall be distributed by the Depositary to the 

  
 A-9

 
Owners entitled thereto, if such distribution is feasible without withholding for or on account of any taxes or other governmental charges and without registration under the Securities Act of
1933, in accordance with such lawful, equitable and practicable method as the Depositary may have adopted; provided further, however, that no distribution to Owners shall be unreasonably delayed by any action of the Depositary
or any of its agents. To the extent such securities or other property, or the net proceeds thereof, is not effectively distributed to Owners as provided herein, the same shall constitute Deposited Securities and each American Depositary Share shall
thereafter also represent its proportionate interest in such securities or other property or net proceeds. The Depositary may withhold any distribution of securities under Section 4.02 of the Deposit Agreement if it has not received reasonably
satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933. The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise
distribute under Section 4.02 of the Deposit Agreement that is sufficient to pay its fees and expenses in respect of that distribution. 
 If any distribution upon any Deposited Securities consists of a dividend in, or distribution without payment of any subscription price of, Shares, including pursuant to any program under which holders of
Deposited Securities may elect to receive cash or Shares, the Depositary may, and shall if the Company so requests, execute and deliver and, if applicable, cause the Registrar to countersign, as promptly as practicable, additional Receipts
evidencing American Depositary Shares representing the amount of Shares received as such dividend or distribution and distribute to the Owners, as of the record date fixed pursuant to Section 4.06 of the Deposit Agreement, of Receipts entitled
thereto in proportion to the number of American Depositary Shares held by them as of such date, Receipts evidencing additional American Depositary Shares, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of
Shares and the issuance of Receipts, including the withholding of any tax or other governmental charge as provided in Section 4.11 of the Deposit Agreement and the payment of fees of the Depositary as provided in Section 5.09 of the
Deposit Agreement (and the Depositary may sell, by public or private sale, an amount of the Shares received sufficient to pay its fees and expenses in respect of that distribution). The Depositary may withhold any such distribution if it has not
received adequate assurances from the Company that such distribution does not require registration under the Securities Act of 1933; provided, however, that no distribution to Owners pursuant to Section 4.03 of the Deposit
Agreement shall be unreasonably delayed by any action of the Depositary or the Custodian. In lieu of delivering Receipts for fractional American Depositary Shares, the Depositary shall sell the amount of Shares representing the aggregate of such
fractions and distribute the net proceeds, all in the manner and subject to the conditions set forth in Section 4.01 of the Deposit Agreement or take such other action, with the approval of the Company, as may be appropriate. Notwithstanding
the foregoing, if the Company shall so direct or if in the reasonable opinion of the 

  
 A-10

 
Depositary such distribution cannot be made or if for any reason (including, but not limited to, any requirement that the Company, the Custodian or the Depositary withhold an amount on account
for taxes or other governmental charges or that such Shares must be registered under the Securities Act of 1933 in order to be distributed to Owner) the Depositary, in its reasonable opinion, determines that a distribution in Shares is not feasible
or may not be legally made to some or all Owners, the Depositary may, following consultation with the Company, adopt such method as it may deem lawful, equitable and practicable for the purpose of effecting such distribution, all in the manner and
subject to the conditions set forth in Section 4.02 of the Deposit Agreement, or take such other action, with the approval of the Company, as may be appropriate. If additional Receipts are not so distributed, each American Depositary Share
shall thenceforth also represent the additional Shares distributed with respect to the Deposited Securities represented thereby. 
 In the event that the Depositary determines that any dividend or other distribution in property other than cash (including Shares and rights to subscribe therefor) is subject to any tax or other
governmental charge which the Depositary is obligated to withhold, the Depositary may (after consultation with the Company) by public or private sale dispose of all or a portion of such property (including Shares and rights to subscribe therefor) in
such amounts and in such manner as the Depositary deems necessary and practicable to withhold any such taxes or charges and the Depositary shall distribute the net proceeds of any such sale after deduction of such taxes or charges to the Owners
entitled thereto in proportion to the number of American Depositary Shares held by them respectively, and the Depositary shall distribute any unsold balance of such property, all in accordance with applicable provisions of the Deposit Agreement.

 13. RIGHTS. 

In the event that the Company shall offer or cause to be offered to the holders of any Deposited Securities any rights to subscribe for
additional Shares or any rights of any other nature, the Depositary shall (after consultation with the Company as to the procedure to be followed) make, as promptly as practicable, such rights available to any Owners, including the distribution of
warrants or other instruments therefor in such form as it deems appropriate, or dispose of such rights on behalf of any Owners and distribute, as promptly as practicable, the net proceeds in Dollars to such Owners, but only pursuant to a
separate agreement to be entered into between the Company and the Depositary setting forth the conditions and procedures that shall apply to that particular offering. If, by the terms of such rights offering or by reason of applicable law, the
Depositary may neither make such rights available to any Owners, nor dispose of such rights and distribute the net proceeds to such Owners, then the Depositary shall allow the rights to lapse. If, at the time of the offering of any rights the
Depositary determines, following consultation with the Company, that it is lawful and feasible to make such rights available to certain Owners but not to 

  
 A-11

 
other Owners, (i) the Depositary shall, pursuant to an agreement as described above, distribute, as promptly as practicable, to every Owner with respect to whom it determines the
distribution to be lawful and feasible, in proportion to the number of American Depositary Shares held by such Owner, warrants or other instruments therefor in such form as it deems appropriate and (ii) in respect of Owners to whom the
Depositary determines the distribution not to be lawful or feasible, the Depositary shall use reasonable efforts to sell the rights, warrants or other instruments in proportion to the number of American Depositary Shares held by such Owners and
distribute the net proceeds of such sales (net of the fees of the Depositary as provided in Section 5.09 and all taxes and governmental charges payable in connection with such rights and subject to the terms and conditions of this Deposit
Agreement) to such Owners upon an averaged or other fair and practicable basis without regard to any distinctions among such Owners resulting from exchange restrictions, the date of delivery of any Receipt or otherwise. 

In circumstances in which rights would not otherwise be distributed, if an Owner requests the distribution of warrants or other
instruments in order to exercise the rights allocable in respect of American Depositary Shares of such Owner under the Deposit Agreement, the Depositary will make such rights available to such Owner upon written notice from the Company to the
Depositary that (a) the Company has elected in its sole discretion to permit such rights to be exercised and (b) the Owner has executed such documents as the Company has determined in its sole discretion are reasonably required under
applicable law. Upon instruction pursuant to such warrants or other instruments to the Depositary from such Owner to exercise such rights, upon payment by such Owner to the Depositary for the account of such Owner of an amount equal to the purchase
price of the Shares or other securities to be received upon the exercise of the rights, and upon payment of the fees of the Depositary as set forth in such warrants or other instruments, the Depositary shall, on behalf of such Owner, exercise the
rights and purchase such Shares or other securities, and the Company shall cause the Shares or other securities so purchased to be delivered to the Depositary on behalf of such Owner. As agent for such Owner, the Depositary will cause the Shares so
purchased to be deposited pursuant to Section 2.02 of the Deposit Agreement, and shall, pursuant to Section 2.03 of the Deposit Agreement, execute and deliver Receipts to such Owner. In the case of a distribution pursuant to the second
paragraph of Section 4.04 of the Deposit Agreement, such Receipts shall be legended, if required, in accordance with applicable U.S. laws, and shall be subject to the appropriate restrictions on sale, deposit, cancellation, and transfer under
such laws. 
 If registration under the Securities Act of 1933 of the rights or the securities to which any rights relate is
required in order for the Company or the Depositary to offer such rights to the Owners and sell the securities represented by such rights, except as otherwise provided in the preceding paragraph, the Company and the Depositary will not offer rights
to Owners unless a registration statement is in effect 

  
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with respect both to such rights and any securities to be received upon exercise of such rights under the Securities Act of 1933 or unless the offering and sale of such securities to such Owners
are exempt from registration under the Securities Act of 1933. Nothing in the Deposit Agreement shall create any obligation on the part of the Company to file a registration statement in respect of any rights or securities for any purpose or to
endeavor to have such a registration statement declared effective. 
 If an Owner requests the distribution of warrants or other
instruments, notwithstanding that there has been no such registration under the Securities Act of 1933, the Depositary shall not effect such distribution unless it has received an opinion from recognized counsel in the United States for the Company
upon which the Depositary may rely that such distribution to such Owner is exempt from such registration. 
 The Depositary
shall not be responsible for any failure to determine that it may be lawful or feasible to make such rights available to Owners in general or any Owner in particular. 
 14. CONVERSION OF FOREIGN CURRENCY. 
 Whenever the Depositary or the
Custodian shall receive Foreign Currency, by way of dividends or other distributions or as the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the Foreign Currency so received can in the
reasonable judgment of the Depositary be converted on a reasonable basis into Dollars and transferred to the United States, the Depositary shall, subject to any restrictions imposed by applicable law, regulations or permits, convert or cause to be
converted, by sale or in any other manner that it may determine, such Foreign Currency into Dollars, and such Dollars shall be distributed, as promptly as practicable, net of any customary expenses incurred by the Depositary in connection with the
conversion of currency pursuant to Section 4.05 of the Deposit Agreement, to the Owners entitled thereto as of the record date fixed pursuant to Section 4.06 of the Deposit Agreement in accordance with any applicable provisions of
Sections 4.01, 4.02, 4.03 and 4.04 of the Deposit Agreement. Such distribution may be made upon an averaged or other fair and practicable basis without regard to any distinctions among Owners resulting from exchange restrictions or otherwise.
Upon the request of the Company, the Depositary shall inform the Company of the exchange rate at which Foreign Currency conversion has been carried out. 
 If such conversion or distribution can be effected only with the approval or license of any government or agency thereof, the Depositary shall file as promptly as practicable such application for approval
or license, if any, as it may deem desirable; provided, however, that if such application involves or refers to or is made on behalf of the Company, such application shall not be filed unless approved by the Company, which approval
shall not be unreasonably withheld or delayed. 

  
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 If at any time the Depositary shall determine, following consultation with the Company, that
in its reasonable judgment any Foreign Currency received by the Depositary or the Custodian is not, pursuant to applicable law or otherwise, convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or
license of any government or agency thereof which is required for such conversion is denied or in the opinion of the Depositary, following consultation with the Company, is not obtainable, or if any such approval or license is not obtained within a
reasonable period as determined by the Depositary, the Depositary may distribute such Foreign Currency (or an appropriate document evidencing the right to receive such Foreign Currency) received by the Depositary or the Custodian to such Owner or
may, and will if requested in writing by an Owner, hold any amounts of Foreign Currency not distributed uninvested for the respective accounts of, the Owners entitled to receive the same, without liability for interest thereon. 

If any such conversion of Foreign Currency, in whole or in part, cannot be effected for distribution to some Owners entitled thereto, the
Depositary may in its discretion, following consultation with the Company, make such conversion and distribution in Dollars to the extent permissible to the Owners entitled thereto for whom such conversion and distribution is practicable and may
distribute the balance of the Foreign Currency (or an appropriate document evidencing the right to receive such Foreign Currency) received by the Depositary or the Custodian to, or hold such balance uninvested and without liability for the
respective accounts of, the Owners entitled thereto for whom such conversion and distribution is not practicable. 
 15. FIXING OF RECORD
DATE. 
 Whenever any cash dividend or other cash distribution shall become payable or any distribution other than cash shall
be made, or whenever rights shall be issued with respect to the Deposited Securities, or whenever for any reason there occurs a change in the number or type of Deposited Securities that are represented by each American Depositary Share, or whenever
the Depositary shall receive notice of any meeting of, or solicitation of consents or proxies from, holders of Shares or other Deposited Securities or whenever the Company or the Depositary finds it necessary or convenient in respect of any matter,
the Depositary shall fix a record date (which, to the extent practicable, shall be the same as any corresponding record date set by the Company with respect to Shares) after consultation with the Company to the extent practicable if such date is to
be different from a corresponding record date set by the Company for the determination of the Owners who shall be entitled to receive such dividend, distribution or rights, or the net proceeds of the sale thereof, or to give instructions for the
exercise of voting rights at any such meeting or in respect of any such solicitation or to receive information as to any such meeting or solicitation, or for fixing the date on or after which each American Depositary Share will represent the changed
number or type of Deposited Securities, subject to the terms and conditions of the Deposit Agreement. If the American Depositary Shares shall be 

  
 A-14

 
listed on any stock exchange, then any such record date shall be fixed in accordance with any applicable rules of such stock exchange. The Depositary as promptly as practicable shall advise the
Company and, if the American Depositary Shares shall be listed on any stock exchange, such stock exchange of any record date so fixed by the Depositary. 
 16. VOTING OF DEPOSITED SECURITIES. 
 Upon receipt of notice of any meeting
or solicitation of consents or proxies of Owners of Shares or other Deposited Securities, if requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, mail to the Owners a notice, the form of which notice shall be
subject to the reasonable discretion of the Depositary, which shall contain (a) such information as is contained in such notice of meeting received by the Depositary from the Company, and (b) a statement that the Owners as of the close of
business on a specified record date will be entitled, subject to any applicable provision of Brazilian law, the By-laws of the Company and the provisions of the Deposited Securities, to instruct the Depositary as to the exercise of the voting
rights, if any, pertaining to the amount of Shares or other Deposited Securities represented by their respective American Depositary Shares and (c) a statement as to the manner in which such instructions may be given, including, when
applicable, an express indication that such instructions may be given or deemed given in accordance with the last sentence of this paragraph if no instruction is received. Upon the written request of an Owner on such record date, received on or
before the date established by the Depositary for such purpose (the “Instruction Date”), the Depositary shall endeavor, insofar as is practicable and permitted under applicable laws and the provisions of the By-laws of the Company and the
provisions of the Deposited Securities, to vote or cause to be voted the amount of Shares or other Deposited Securities represented by the American Depositary Shares evidenced by such Receipt in accordance with the instructions set forth in such
request. The Depositary shall not, and the Depositary shall ensure that the Custodian or any of its nominees shall not, vote or attempt to exercise the right to vote that attaches to the Shares or other Deposited Securities, other than in accordance
with such instructions or deemed instructions, if any. If (i) the Company instructed the Depositary to act under this paragraph and gave the Depositary notice of any such meeting and details concerning the matters to be voted upon not less than
30 days prior to the meeting date and (ii) no instructions are received by the Depositary from an Owner with respect to a matter and an amount of American Depositary Shares of that Owner on or before the date established by the Depositary for
such purpose, the Depositary shall deem that Owner to have instructed the Depositary to give a discretionary proxy to a person designated by the Company with respect to that matter and the amount of Deposited Securities represented by that amount of
American Depositary Shares and the Depositary shall give a discretionary proxy to a person designated by the Company to vote that amount of Deposited Securities as to that matter, except that no such instruction shall be deemed given and no
such discretionary proxy shall be given with respect to any matter as to which the Company informs the 

  
 A-15

 
Depositary (and the Company agrees to provide such information as promptly as practicable in writing, if applicable) that (x) the Company does not wish such proxy given, (y) substantial
opposition exists or (z) such matter materially and adversely affects the rights of holders of Shares. 
 In order to give
Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Deposited Securities, if the Company will request the Depositary to act under the preceding paragraph, the Company shall Company shall use
reasonable efforts to give the Depositary notice of any such meeting and details concerning the matters to be voted upon not less than 30 days prior to the meeting date. 
 There can be no assurance that Owners generally or any Owner in particular will receive the notice described in the preceding paragraph sufficiently prior to the Instruction Date to ensure that the
Depositary will vote the Shares or Deposited Securities in accordance with the provisions set forth in the preceding paragraph. 

Subject to the rules of any securities exchange on which American Depositary Shares or the Deposited Securities represented thereby are
listed or quoted, the Depositary shall, if requested by the Company deliver, at least two (2) Business Days prior to the date of such meeting, to the Company, to the attention of the Chief Financial Officer and General Counsel, copies of all
instructions received from Owners in accordance with which the Depositary will vote, or cause to be voted, the Deposited Securities represented by the American Depositary Shares evidenced by such Receipts at such meeting. Delivery of instructions
will be made at the expense of the Company (unless otherwise agreed in writing by the Company and the Depositary) provided that payment of any such expense by the Company shall not be a condition precedent to the obligations of the Depositary under
Section 4.07 of the Deposit Agreement. 
 17. CHANGES AFFECTING DEPOSITED SECURITIES. 

In circumstances where the provisions of Section 4.03 of the Deposit Agreement do not apply, upon any change in nominal value, change
in par value, split-up, consolidation or other reclassification of Deposited Securities, or upon any recapitalization, reorganization, merger, consolidation or sale of assets affecting the Company or to which it is a party, any securities which
shall be received by the Depositary or the Custodian in exchange for, conversion of, replacement or otherwise in respect of Deposited Securities shall, subject to the terms of the Deposit Agreement and applicable law, including any applicable
provisions of the Securities Act of 1933, be treated as new Deposited Securities under the Deposit Agreement, and each American Depositary Share shall, subject to the terms of the Deposit Agreement and applicable law, including any applicable
provisions of the Securities Act of 1933, thenceforth represent an appropriately adjusted proportional interest in the Deposited Securities so received in exchange or conversion or replacement or

  
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otherwise, unless additional or new Receipts are delivered pursuant to the following sentence. In any such case the Depositary may, and shall if the Company shall so request, execute and deliver
and, if applicable, cause the Registrar to countersign additional Receipts as in the case of a stock dividend on the Shares, or call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing such new
Deposited Securities. Upon the occurrence of any change or other event covered by Section 4.08 of the Deposit Agreement with respect to the Deposited Securities, the Depositary shall give notice thereof in writing to all Owners if the event
affects holdings of American Depositary Shares. Notwithstanding the foregoing, in the event that any securities so received may not be lawfully distributed to some or all Owners, the Depositary may, following consultation with the Company to the
extent practicable, sell such securities at public or private sale, at such place or places and upon such terms as it may deem proper, and may allocate the net proceeds of such sale for the account of the Owners otherwise entitled to such securities
upon an averaged or other practicable basis without regard to any distinctions among such Owners and distribute the net proceeds so allocated to the extent practicable as in the case of a distribution received in cash pursuant to Section 4.01
of the Deposit Agreement. 
 18. LIABILITY OF THE COMPANY AND THE DEPOSITARY 

Neither the Depositary nor the Company nor any of their respective officers, directors, employees, agents or affiliates shall incur any
liability to any Owner or Holder (i) if by reason of any provision of any present or future law or regulation of the United States or any other country, or of any governmental or regulatory authority or stock exchange, or by reason of any
provision, present or future, of the articles of association or similar document of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof, or by reason of any act
of God or war or terrorism or other circumstances beyond its control, the Depositary or the Company shall be prevented, delayed or forbidden from, or be subject to any civil or criminal penalty on account of, doing or performing any act or thing
which by the terms of this Deposit Agreement or the Deposited Securities it is provided shall be done or performed, (ii) by reason of any non-performance or delay, caused as aforesaid, in the performance of any act or thing which by the terms
of this Deposit Agreement it is provided shall or may be done or performed, (iii) by reason of any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement, (iv) for the inability of any Owner or Holder to
benefit from any distribution, offering, right or other benefit which is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Owners or Holders, or (v) for any special,
consequential or punitive damages for any breach of the terms of this Deposit Agreement. Where, by the terms of a distribution pursuant to Section 4.01, 4.02 or 4.03, or an offering or distribution pursuant to Section 4.04, or for any
other reason, such distribution or offering may not be made available to Owners, and the Depositary may not dispose of such distribution or offering on behalf of such Owners and make the net proceeds available to such Owners, then the Depositary
shall not make such distribution or offering, and shall allow any rights, if applicable, to lapse. 

  
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 The Company assumes no obligation nor shall it be subject to any liability under this
Deposit Agreement to any Owner or Holder, except that the Company agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith. Each of the Company and its agents and their respective officers,
directors, employees and affiliates assumes no obligation nor shall it be subject to any liability under the Deposit Agreement to the Custodian or any agent of the Depositary or the Custodian, except under Section 5.08 of the Deposit Agreement.
The Depositary assumes no obligation nor shall it be subject to any liability under this Deposit Agreement to any Owner or Holder (including, without limitation, liability with respect to the validity or worth of the Deposited Securities), except
that the Depositary agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith. Neither the Depositary nor the Company shall be under any obligation to appear in, prosecute or defend any
action, suit or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares on behalf of any Owner or Holder or any other person. Neither the Depositary nor the Company shall be liable for any action or
nonaction by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or any other person believed by it in good faith to be competent to give such advice or information.
Each of the Depositary and its agents and the Company and its agents may rely and shall be protected in acting upon notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or
parties. The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or
resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its obligations without negligence or bad faith while it acted as Depositary. Neither the Company nor the
Depositary shall be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise. Except as otherwise provided in
this Deposit Agreement, the Depositary will not release any information regarding the Company without prior written approval from the Company; provided, however, that the Depositary may release, without prior approval from the Company,
information made publicly available by the Company if the form and substance of such information has not been altered or modified in any way other than by the Company. The Depositary shall not be responsible for any failure to carry out any
instructions to vote any of the Deposited Securities, or for the manner in which any such vote is cast or the effect of any such vote, provided that any such action or nonaction is in good faith. No disclaimer of liability under the Securities Act
of 1933 is intended by any provision of the Deposit Agreement. 

  
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 19. RESIGNATION AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF SUCCESSOR CUSTODIAN. 

The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice of its election so to do delivered to
the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. 

The Depositary may at any time be removed by the Company by 60 days’ written notice of such removal delivered
to the Depositary, to become effective upon the later of (i) the 60th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. The Depositary in
its discretion, after consultation with the Company to the extent practicable, may appoint a substitute custodian. 
 20. AMENDMENT.

 The form of the Receipts and any provisions of the Deposit Agreement may at any time and from time to time be amended by
agreement in writing between the Company and the Depositary in any respect which they may deem necessary or desirable. Any amendment which shall impose or increase any fees or charges (other than taxes and other governmental charges, registration
fees, cable, telex or facsimile transmission costs, delivery costs or other such expenses), or which shall otherwise prejudice any substantial existing right of Owners shall, however, not become effective as to outstanding Receipts until the
expiration of 30 days after written notice of such amendment shall have been mailed to the Owners of outstanding Receipts. Every Owner at the time any amendment so becomes effective shall be deemed, by continuing to hold such Receipt, to consent and
agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall any amendment impair the right of the Owner of any Receipt to surrender such Receipt and receive therefor the Deposited Securities represented
thereby, except in order to comply with mandatory provisions of applicable law. 
 21. TERMINATION OF DEPOSIT AGREEMENT. 

The Depositary shall at any time at the direction of the Company terminate the Deposit Agreement by mailing notices of such termination to
the Owners of all Receipts then outstanding at least 30 days prior to the date fixed in such notice for such termination. The Depositary may likewise terminate the Deposit Agreement (upon 30 days’ prior written notice of such termination to the
Company and the Owners of all Receipts then outstanding) if at any time 60 days after the Depositary shall have delivered to the Company a written notice of its resignation sent by registered mail, return receipt requested, a successor depositary
shall not have been appointed and accepted its appointment as provided in Section 5.04 of the Deposit Agreement. The Depositary shall mail notice of such termination to the Owners of 

  
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all Receipts then outstanding at least 30 days prior to the date fixed in such notice for such termination. On and after the date of termination, each Owner shall, upon (i) surrender of each
of its Receipts at the Depositary’s Corporate Trust Office, (ii) payment of the fees of the Depositary for the surrender of Receipts provided herein and (iii) payment of any applicable taxes and governmental charges, be entitled to
delivery, to him or upon his order, of the whole number of Deposited Securities represented by the American Depositary Shares evidenced by such Receipts and to the net proceeds of the sale of any fractional Deposited Securities represented thereby.
If any Receipts shall remain outstanding after the date of termination, the Depositary thereafter shall discontinue the registration of transfers, combinations and split-ups of Receipts, shall suspend the distribution of dividends to the Owners
thereof shall not accept deposits of Shares (and shall instruct the Custodian to act accordingly), and shall not give any further notices or perform any further acts under the Deposit Agreement, except that the Depositary shall continue to collect
dividends and other distributions pertaining to Deposited Securities, shall sell property and rights and convert Deposited Securities into cash as provided in the Deposit Agreement, and shall continue to deliver Deposited Securities, together with
any dividends or other distributions received with respect thereto and the net proceeds of the sale of any rights or other property, in exchange for Receipts surrendered to the Depositary (after deducting, in each case, the fee of the Depositary for
the surrender of a Receipt, any expenses for the account of the Owner of such Receipt in accordance with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges). 

At any time after the expiration of four months from the date of termination, the Depositary may sell the Deposited Securities then held
under the Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it under the Deposit Agreement, unsegregated and without liability for interest, for the pro rata benefit of
the Owners which have not theretofore surrendered their Receipts, such Owners thereupon becoming general creditors of the Depositary with respect to such net proceeds. After making such sale, the Depositary shall be discharged from all obligations
under the Deposit Agreement, except to account for such net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of a Receipt, any expenses for the account of the Owner of such Receipt in accordance
with the terms and conditions of the Deposit Agreement, and any applicable taxes or governmental charges) and except for its obligations under Section 5.08 of the Deposit Agreement. Upon the termination of the Deposit Agreement, the Company
shall be discharged from all obligations under the Deposit Agreement except for its obligations to the Depositary under Sections 5.08 and 5.09 of the Deposit Agreement. 

  
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 22. COMPLIANCE WITH U.S. SECURITIES LAWS. 

Notwithstanding any terms of this Receipt or the Deposit Agreement to the contrary, each of the Company and the Depositary have agreed
that it will not exercise any rights it has under the Deposit Agreement or the Receipt to permit the withdrawal or delivery of Deposited Securities in a manner which would violate the United States securities laws, including, but not limited to
Section I A(1) of the General Instructions to the Form F-6 Registration Statement, as amended from time to time, under the Securities Act of 1933. 
 23. INFORMATION REQUESTS. 
 The Company, and the Depositary at the
Company’s request, may from time to time request Owners of Receipts to provide information as to the capacity in which such Owners own or owned Receipts and regarding the identity of any other persons then or previously interested in such
Receipts and the nature of such interest and various other matters. Each such Owner agrees to provide any such information reasonably requested by the Company or the Depositary pursuant to Section 3.04 of the Deposit Agreement and such
agreement shall survive any disposition of such Owner’s Receipts or the American Depositary Shares evidenced thereby. The Depositary agrees to use reasonable efforts to comply with written instructions received from the Company requesting that
the Depositary forward any such requests to the Owners and to forward to the Company any responses to such requests received by the Depositary, and to use its reasonable efforts, at the Company’s request and expense, to assist the Company in
obtaining such information with respect to the American Depositary Shares; provided that nothing herein shall be interpreted as obligating the Depositary to provide or obtain any such information not provided to the Depositary by such Owners.

 Each of the Depositary and the Company hereby confirms to the other that for as long as the Deposit Agreement is in effect,
it shall furnish the CVM and the Central Bank, at any time and within the period that may be determined, with any information and documents related to the American Depositary Share program and the American Depositary Shares issued hereunder. In the
event that the Depositary or the Custodian shall be advised in writing by reputable independent Brazilian counsel that the Depositary or Custodian reasonably could be subject to criminal, or material, as reasonably determined by the Depositary,
civil, liabilities as a result of the Company having failed to provide such information or documents reasonably available only through the Company, the Depositary shall have the right to terminate the Deposit Agreement, upon at least 30 days’
prior notice to the Owners and the Company, and the Depositary shall not be subject to any liability hereunder on account of such termination or such determination. The effect of any such termination of the Deposit Agreement shall be as provided in
Section 6.02 of that Agreement. 

  
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 24. NO LIABILITY AND RESPONSIBILITY. 

None of the Company, the Depositary or the Custodian will have any liability or responsibility whatsoever for any action or failure to act
by any Owner relating to the Owner’s obligations under any applicable Brazilian law or regulation relating to foreign investment in Brazil in respect of a withdrawal or sale of Deposited Securities, including, without limitation, any failure to
comply with a requirement to register such investment pursuant to the terms of any such applicable Brazilian law or regulation prior to such withdrawal or any failure to report foreign exchange transactions to the Brazilian Central Bank, as the case
may be. Each Owner will be responsible for the report of any false information relating to foreign exchange transactions to the Custodian or the Brazilian Central Bank in connection with deposits or withdrawals of Deposited Securities. 

25. UNCERTIFICATED AMERICAN DEPOSITARY SHARES; DTC DIRECT REGISTRATION SYSTEM. 

Notwithstanding anything to the contrary in the Deposit Agreement: 

(a) American Depositary Shares may be certificated securities evidenced by Receipts or uncertificated securities. The form of Receipt
annexed as Exhibit A to the Deposit Agreement summarizes the terms and conditions of, and will be the prospectus required under the Securities Act of 1933 for, both certificated and uncertificated American Depositary Shares. Except for those
provisions of the Deposit Agreement that by their nature do not apply to uncertificated American Depositary Shares, all the provisions of the Deposit Agreement shall apply, mutatis mutandis, to both certificated and uncertificated American
Depositary Shares. 
 (b) (i) The term “deliver”, or its noun form, when used with respect to Receipts, shall mean
(A) book-entry transfer of American Depositary Shares to an account at The Depository Trust Company, or its successor (“DTC”), designated by the person entitled to such delivery, evidencing American Depositary Shares registered in the
name requested by that person, (B) registration of American Depositary Shares not evidenced by a Receipt on the books of the Depositary in the name requested by the person entitled to such delivery and mailing to that person of a statement
confirming that registration or (C) if requested by the person entitled to such delivery, delivery at the Corporate Trust Office of the Depositary to the person entitled to such delivery of one or more Receipts. 

(ii) The term “surrender”, when used with respect to Receipts, shall mean (A) one or more book-entry transfers of American
Depositary Shares to the DTC account of the Depositary, (B) delivery to the Depositary at its Corporate Trust Office of an instruction to surrender American Depositary Shares not evidenced by a Receipt or (C) surrender to the Depositary at
its Corporate Trust Office of one or more Receipts evidencing American Depositary Shares. 

  
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 (c) American Depositary Shares not evidenced by Receipts shall be transferable as
uncertificated registered securities under the laws of New York. 
 (d) The Depositary shall have a duty to register a transfer,
in the case of uncertificated American Depositary Shares, upon receipt from the Owner of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in subsection (f) below). The Depositary,
upon surrender of a Receipt for the purpose of exchanging it for uncertificated American Depositary Shares, shall cancel that Receipt and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American
Depositary Shares that the surrendered Receipt evidenced. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in subsection (f) below) from the Owner of
uncertificated American Depositary Shares for the purpose of exchanging them for certificated American Depositary Shares, shall execute and deliver to the Owner a Receipt evidencing the same number of certificated American Depositary Shares.

 (e) Upon satisfaction of the conditions for replacement of a Receipt that is mutilated, lost, destroyed or stolen, the
Depositary shall deliver to the Owner the American Depositary Shares evidenced by that Receipt in uncertificated form unless otherwise requested by the Owner. 
 (f) (i) The parties acknowledge that the Direct Registration System (“DRS”) and Profile Modification System (“Profile”) shall apply to uncertificated American Depositary Shares upon
acceptance thereof to DRS by DTC. DRS is the system administered by DTC pursuant to which the Depositary may register the ownership of uncertificated American Depositary Shares, which ownership shall be evidenced by periodic statements issued by the
Depositary to the Owners entitled thereto. Profile is a required feature of DRS which allows a DTC participant, claiming to act on behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American
Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register such transfer. 

(ii) In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties understand that the
Depositary will not verify, determine or otherwise ascertain that the DTC participant which is claiming to be acting on behalf of an Owner in requesting a registration of transfer and delivery as described in subsection (i) above has the actual
authority to act on behalf of the Owner (notwithstanding any requirements under the Uniform Commercial Code). For the avoidance of doubt, the provisions of Sections 5.3 and 5.8 of the Deposit Agreement shall apply to the matters arising from the use
of the DRS. The parties agree that the Depositary’s reliance on and compliance with instructions received by the Depositary through the DRS/Profile System and in accordance with the Deposit Agreement shall not constitute negligence or bad faith
on the part of the Depositary. 

  
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