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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
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- Spring '08