The Rio de Janeiro State Technical Registry of Potentially Polluting Activities and Environmental Resources Consuming Activities (“CTE”) and its respective State Control and Inspection Tax (“TCFARJ”), administered by the State Environmental Agency (“INEA”), took effect March 10, 2010. It was introduced by State Law No. 5,438, dated April 17, 2009.

The Federal Environmental Agency’s (“IBAMA”) database system for the Federal Technical Registry (“CTF”) and its respective Tax (“TCFA”) is to be shared with the INEA pursuant to the terms of the Technical Cooperation Agreement entered into by INEA and IBAMA in February 2010.

As a result of the combined use of the referred database system, individuals and companies engaged in potentially polluting activities in Rio de Janeiro must register, free of charge, with either INEA or IBAMA. In addition to the registry obligation, such individuals and companies shall submit, on an annual basis, a report describing the activities they have performed during the previous year and, depending on the environmental impact of the performed activities, shall pay, on a quarterly basis, the TCFA and the TCFARJ. Such taxes are calculated based on the polluting potential of the performed activities and taking into account the size of the business activities.

Payment of the TCFARJ may compensate payment of up to sixty percent (60%) of the TCFA. In order to enable immediate compensation of such taxes, it is advisable that payment of TCFARJ is done prior to payment of TCFA, which next payment date will be March 31, 2010.

Please note that refraining from registering with the CTE subjects the non-complying party to a fine of up to 7.205 UFIR-RJ (equivalent to approximately R$14,541.85) and non-payment of the TCFARJ subjects the defaulting party to pay the amount due accrued by the applicable fine and interest.