aracruz2000

The courts decision established a framework for

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Unformatted text preview: sion for eventual losses, based on the Court’s computation framework and existing labor jurisprudence, in the amount of U.S.$ 16,849 regarding these claims, and deposited U.S.$ 4,180 in an escrow account. (ii) Administrative Proceedings The Company has been involved in an administrative claim regarding the enlargement of Indian reservations in an area owned by the Company. In April 1998, the Indian communities signed two Terms of Settlement recognizing the legitimacy of the Ministry of Justice Edicts 193, 194 and 195, dated March 6, 1998, that restricted expansion of the reservation to 2,571 hectares of land belonging to the Company. Additionally, the Company committed itself to a financial aid program to be implemented through social, agricultural, educational, shelter and health projects, up to an amount of approximately R$ 13.5 million (equivalent to U.S.$ 6.9 million at December 31, 2000), to be disbursed within a twenty-year period, conditioned to the accomplishment of certain obligations by the Indian communities. If the Indian communities breach any of their obligations, Aracruz will be released from the oblig...
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