DECREE NO 3,604, DE September 20, 2000.

Approves the Consolidation of the Statute of the Development Company of the Vales of San Francisco and the Parnaíba-CODEVASF.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 84, inciso IV, of the Constitution, and in view of the provisions of the Leis paragraphs. 6,088, of July 16, 1974, and 9,954, of January 6, 2000,

DECRETA:

Art. 1 It is approved of the consolidation of the Statute of the Valleys Development Company of the San Francisco and the Paraíba-CODEVASF, attached to this Decree.

Art. 2 This Decree goes into effect on the date of its publication.

Art. 3 Revoga-if Decree No 416, of January 7, 1992.

Brasilia, September 20, 2000 ; 179º of the Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Fernando Bezerra

ANNEX

STATUS OF THE DEVELOPMENT COMPANY OF THE VALLEYS FRANCIS AND THE PARNAÍBA-CODEVASF

CHAPTER I

DA DENOMINATION OF THE LEGAL NATURE

Art. 1 The Development Company of the Valleys of San Francisco and the Parnaíba CODEVASF is a public company linked to the Ministry of National Integration.

Art. 2º CODEVASF shall be governed by Law No. 6,088 of June 16, 1974, by this Statute, and, in the alternative, by the applicable law standards.

CHAPTER II

DA HEADQUARTERS AND DURATION

Art. 3º CODEVASF has seat and venue in the Federal District and acting in the valleys of the rivers San Francisco and Parnaíba, in the states of Pernambuco, Alagoas, Sergipe, Bahia, Minas Gerais, Goiás, Federal District, Piauí and Maranhão.

Single Paragraph. The CODEVASF will be able to install, maintain and extinguish, in the Country, organs and sectors of operation and representation.

Art. 4º The duration of CODEVASF is unfettered.

CHAPTER III

SOCIAL OBJECTIVE

Art. 5º CODEVASF is intended to make use of, for agricultural, agri-livestock and agroindustrial purposes, the water and soil resources of the valleys of the San Francisco and Parnaíba.directly or through public and private entities, promoting the integrated development of priority areas and the deployment of agroindustrial and agroindustrial districts.

Art. 6º Competes especially for CODEVASF, in respect of the region of the valleys of the rivers San Francisco and Parnaíba:

I-Coordinate the deployment of valuation and exploitation programmes of water and soil resources for agricultural, agroindustrial and agroindustrial purposes ;

II-Coordinate the execution, directly or upon hiring, of infrastructure works, particularly of water capitation for irrigation purposes of primary or secondary channels, as well as works of basic sanitation, electrification and transport, as per the director plan, in articulation with the competent federal bodies ;

III-implantation or collaboration in the implantation of colonization cores for medium and small irrigating, as well as in the deployment of business projects ;

IV-promote or maintain, in articulation with public or private entities, centres of development and empowerment of irrigants ;

V-maintain articulation with the organs of the Federal State and Municipal Public Administration in the execution of the plans, programs and projects ;

VI-acting, in coordination with the regional development bodies, in the elaboration of its programs and projects and in the exercise of their acting in the areas coinciding with those of these entities, in order to ensure the guidance unit of socio-economic and agricultural policies and the efficiency of public or private investments ;

VII-collaborate, permanently, in the study of the river regime and in combating pollution of rivers St. Francis and Parnaíba and their main tributaries ;

VIII-promote or perform cartographic, topographical, geological, pedological and classification of land, for irrigation and agrolivestock vocation ;

IX-promote the acquisition or dispropriation of areas intended for the deployment of projects of agricultural, agroindustrial and agroindustrial development, including irrigation, as well as alienating them in the form of the current legislation ; and

X-exert activities necessary to the operationalization of your programs and projects, when the organs specific ones cannot meet them, and as long as expressly requested, and may also celebrate arrangements, contracts, agreements or adjustments, with legal persons of public or private, national, foreign or international law.

§ 1º In the exercise of its assignments, CODEVASF will be able to act, by delegation of the organs competent, as an agent of the Public Power, performing function of administration and surveillance of the rational use of water and soil resources.

§ 2º THE CODEVASF, in the exercise of its assignments, concerning the multiple use of water resources, will be adstrated to comply with the standards and guidelines of the regulatory bodies of water resources.

Art. 7º For the realization of your goals, you can CODEVASF:

I-stimulate and steer the private initiative, promote the organization of production companies, beneficiation and industrialization of primary products ;

II-promote and disseminate, together with public and private entities, information on natural resources and social, infrastructural and economic conditions, aiming for the realization of ventures in the valleys of the rivers San Francisco and Parnaíba ;

III-elaborate, in collaboration with the other federal, state or municipal public bodies that act in the area, the annual and multiannual plans for integrated development of the valleys of the rivers San Francisco and Parnaíba, indicating, since soon, the priority programs and projects, with respect to the activities provided for in this Statute:

IV-design, construction and operation of dam works and structures, piping, pumping, fertilizing and water treatment and sanitation ;

V-elaborate, deploy and operate irrigation projects ; and

VI-carry out regularization work of the rivers San Francisco and Parnaíba, flood control, pollution and combating droughts, and in their tributaries, upon convenium.

Art. 8º In the performance of their tasks, CODEVASF shall act in a manner that is carried out by means of public or private entities, using, whenever possible the indirect execution of works, upon arrangements, contracts, agreements or adjustments.

CHAPTER IV

DA SOCIAL CAPITAL AND RESOURCES

Art. 9º The social capital of CODEVASF, wholly owned by the Union, is from R$ 40.128.672, to 70 (forty million, one hundred and twenty-eight thousand, six hundred and seventy-two real and seventy-pennies), represented by 40,128,672 (forty million and twenty-twenty-40,128,672 eight thousand six hundred and seventy and two) nominative stocks with no nominal value.

Art. 10. The capital of CODEVASF could be increased by act of Executive Power, upon capitalisation of profits, reserves or addition of Union capital.

Single Paragraph. You will be able to participate in the capital increases, legal persons of domestic public law, including entities of the indirect Federal Public Administration, and should be reserved to the union, in any hypothesis, the minimum participation of fifty per cent plus one of the shares with the right to vote.

Art. 11. They constitute resources of CODEVASF:

I-the budgetary allocations set out in the Union budget ;

II-the operating revenues ;

III-the patrimony revenues ;

IV-the product of credit operations ;

V-the donations ; and

VI-those of other sources.

CHAPTER V

DA ORGANIZATIONAL COMPOSITION AND ADMINISTRATION

Art. 12. The basic organization of CODEVASF obeys the following constitution ;

I-Board of Directors ;

II-Fiscal Council ; and

III-Executive Board.

Art. 13. The organisational structure of CODEVASF and the discrimination of the competencies of the units that compose it, as well as the corresponding assignments of its holders, will be detailed in the internal regime.

SETION I

From the Board of Directors

Art. 14. The Board of Directors, composed of six members, is the superior deliberation organ of CODEVASF and has the following composition:

I-a representative of the Ministry of National Integration, who will exercise the Presidency of the Collegiate ;

II-President of CODEVASF ;

III-a representative of the Ministry of Agriculture and Supply ;

IV-a representative of the Ministry of Mines and Energy ;

V-a representative of the Ministry of Planning, Budget and Management ; and

VI-a representative of the Ministry of Transport.

§ 1º The representatives of the organs referred to in the incisos I, III, IV, V and VI shall be designated in act of the Minister of State for National Integration, upon indication of the holders of the bodies represented in the Council, among servers of notorious knowledge and experience, moral idoneity and reputation, and all referrals should be submitted to the prior approval of the President of the

§ 2º The President of CODEVASF is a Nato member of the Board of Directors and will replace the President of the Council in its impediments.

§ 3º The term of office of the members of the Board of Directors referred to in the incisos I, III, IV, V and VI is two years, admits to redriving.

§ 4º Unless legal impediment, the honorees of the members of the Board of Directors will correspond to ten per cent of the average monthly remuneration of the Board.

Art. 15. The Board of Directors shall meet, ordinarily, once a month and, extraordinarily, whenever necessary, in any of the cases by summoning its President, or by the majority of its members.

Single Paragraph. The deliberations of the Council shall be taken by a majority of votes of the members present and registered in minutes, with the Chairman the ordinary vote and the quality.

Art. 16. It shall be for the Board of Directors:

I-approve the policies, guidelines and priorities that should be observed in programming and execution of the activities of CODEVASF ;

II-approve the director plan of CODEVASF ;

III-approve, upon proposal by the Executive Board, accompanying its execution, the plans multiannual and annual CODEVASF, the special programmes and projects and their budgets, as well as their reformulations ;

IV-examine the annual report of the Administration and financial statements of the financial year social ;

V-propose to the Minister of State for National Integration the increase in the capital of CODEVASF ;

VI-approve the internal regiment of CODEVASF ;

VII-authorize the transigence, renunciation and dismissal of law and action, grant of use remunerated or free of charge, donation, oneration, disposal, acquisition and low of movable and immovable property, when any of these acts refer to values exceeding five percent of CODEVASF's social capital ;

VIII-deliberation on loan proposal to be submitted to funding entity in the Country or in the Exterior ;

IX-approve the nomination of the Internal Audit holder ;

X-grant license to the directors of CODEVASF ;

XI-determine the hiring of independent auditors, when judgeting necessary for the performance of your assignments ;

XII-establish and approve the systematic of its operation ;

XIV-examine, at any time, the books and papers of CODEVASF and request information about contracts concluded or on the way of celebration ;

XV-appreciating the monthly results of CODEVASF operations ;

XVI-establish the guidelines for drafting the internal audit plan and approx-lo;

XVII-give an opinion, heard the Executive Board, in advance of the decision of the Minister of State for National Integration, without prejudice to the specific legislation, when it is the case, on the following matters:

a) divestment in whole or in part, of shares of its social capital or of its controlled ones ;

b) opening of your capital ;

c) increase of your social capital by subscription of new shares ;

d) waives subscription rights of shares or convertible debentures in shares of companies controlled ;

e) issuance of convertible debentures in stock or sales, if in treasury ;

f) sale of convertible debentures in shares of its issuance of companies controlled ;

g) issuance of any other securities or securities, in the Country or abroad ;

h) promotion of spation, merger or incorporation operations of CODEVASF ;

i) permuta of shares or other securities ;

XVIII-taking the administrators' accounts and deliberating on the financial statements ;

XIX-appreciate the proposal to target the profit and distribution of dividends, submitting it to approval of the Minister of State of the Farm ;

XX-deliberation on the valuation of goods with which the shareholder to run for social capital ;

XXI-authorize the creation of reserve and provision funds, after consideration of the respective proposal by the Executive Board ; and

XXII-deliberating on the cases missing in the Statute.

SETION II

From the Fiscal Council

Art. 17. The Fiscal Council, CODEVASF's supervisory body, of permanent character, will consist of three effective and equal number of alternates, designated in act of the Minister of State for National Integration, by the one-year deadline, allowed for redriving for equal period.

§ 1º In the composition of the Council, one of the members shall represent the National Treasury and the two others, the Ministry of National Integration, staying the indication of the respective names subject to the prior approval of President of the Republi

§ 2º The Fiscal Council shall meet, ordinarily, once a month, and, extrardially, when convened by its President or by deliberation of the majority of its members.

§ 3º The organs of administration are required, upon written communication to place disposition members in the exercise of the Fiscal Council, within ten days, copies of the minutes of their meetings and, within fifteen days of their receipt, copies of the balance sheets and of the other financial statements drawn up periodically and, when there are, of the reports of execution of budgets.

§ 4º The Fiscal Council, at the request of any member of its members, will ask the administration bodies clarification or information, as well as the elaboration of special financial statements or accounting.

§ 5º The members of the Fiscal Council shall attend meetings of the Board of Directors or the Directorate in which to deliberate on the subjects in which they should opinion.

§ 6º If CODEVASF does not have independent auditors, the Fiscal Board may, for the better performance of their functions, choose counter or audit firm and fix them fees, within reasonable levels, beams in the square and compatible with the economic dimension of the Company, which will be paid for by this.

§ 7º The powers and powers conferred by law to the Fiscal Council may not be given another organ of CODEVASF.

§ 8º shall consider vacant as a member of the Fiscal Council who, without justified cause, leave from exercise their function for more than two consecutive meetings or accumulate more than three flats.

§ 9º Unless legal impediment, the members of the Fiscal Board will notice, by the effective exercise of their mandates, fees corresponding to ten per cent of the Board's average monthly remuneration.

Art. 18. The Fiscal Council competes:

I-scrutinize the management acts of CODEVASF administrators and check the cumin of their legal and statutory duties ;

II-opinion on the annual report of the administration and the financial statements, making note of their opinion as supplementary information which it believes necessary and useful to the deliberation of the Board of Directors ;

III-opinion on the proposals of the Executive Board, to be submitted to the Board of Administration, relating to the modification of social capital, dividend distribution and profit targeting ;

IV-give science to the administrative bodies and the Board of Directors, using, if it is the in case, to the Minister of State for National Integration, of the errors and possible irregularities, to be found in the exercise of their assignments, practiced against the CODEVASF heritage, so that the necessary arrangements for protection are adopted of your interests ;

V-analyse, at a minimum, quarterly, the balance sheets and the other financial statements, drafted periodically by CODEVASF ; and

VI-establish and approve the systematic of its operation.

SETION III

The Executive Directorate

Art. 19. The CODEVASF is run by a collegiate nature Executive Board composed of its President and three Directors, without special designation, appointed by the President of the Republic and demissables adnutum.

Art. 20. It is incumbent on the Executive Board:

I-Praticar the management acts of CODEVASF ;

II-comply with and enforce the deliberations of the Board of Directors ;

III-authorize the rental of heritage goods to third parties and third party goods for use of the CODEVASF ;

IV-approve the internal regiments of the organs that make up the organizational structure of the CODEVASF ;

V-authorize the realisation of arrangements, agreements, adjustments or contracts, which constitute burden, obligations or commitments to CODEVASF ;

VI-place at the disposal of the Fiscal Council the documents provided for in § 1º of the art. 163 of Law No. 6,404 of December 15, 1976 ;

VII-appreciate the annual report of the administration, the financial statements and the proposal of profit targeting, submitting to the Board of Directors, by March 31 of the subsequent year to the social year, accompanied by the opinion of the Fiscal Council ;

VIII-approve the execution, by CODEVASF, of activities necessary to the operationalization of programs and projects, when the specific organs cannot accomplish them ;

IX-approve values and authorize the transigence, renunciation and giving up of law and action. grant of paid or free use, donation, burden, aligning, acquisition and low of movable and real estate, of corresponding values up to five per cent of the social capital ;

X-appreciate and submit to the Board of Directors the matters which are dependent on their decision ; and

XI-establish and approve the systematic of its operation.

Art. 21. The Executive Director will meet ordinarily, once a week and, extradited, when convened by the President.

SETION IV

From the President and the Directors

Art. 22. They are attributions of the President:

I-execer the supervision over all activities of CODEVAF ;

II-comply with and enforce the standards in force ;

III-convene and chair the meetings of the Executive Board ;

IV-assign to each Director the respective area of acting, which will be able to understand one or more unit in accordance with the internal regiment as well as the execution of other charges ;

V-assign the Director that will replace it in its absences and even impediments ;

VI-admit, promote, assign exonerate, punish, transfer and dispense employees ;

VII-represent CODEVASP, in judgment or outside of it may delegate this assignment, in cases specials, and constituting mandators or prosecutors ;

VIII-subscribe to arrangements, contracts, agreements or adjustments ;

IX-lower the acts that substantiate the resolutions of the Executive Board ;

X-submit to the Minister of State for National Integration the subjects that depend on their decision ; and

XI-designate, in accordance with the internal regiment, the leaders who will be able to issue, sign and endorse cheques, payment orders, credit titles, and CODEVASF stock.

Single Paragraph. In the absence of the Director's designation that it treats the inciso V, it will answer for the presidency the oldest director in the function, and, in the case of a draw, the most elderly.

Art. 23. They are assignments of directors:

I-participate in the meetings and deliberations of the Executive Board ;

II-directing, coordinating and controlling the activities of the area assigned to it by the President of the CODEVASF ;

III-comply with and enforce the standards in force ; and

IV-carry out other charges that are assigned by the President.

CHAPTER V

OF PESSOAL

Art. 24. The personnel of CODEVASF shall be admitted, compulsorily, by public tender of evidence or evidence and securities under the legal regime of the Consolidation of Labour Laws.

Paragraph unico. The signed work contracts will contain clasula available that, according to the needs of the service, the employee can be transferred to any CODEVASF acting location or where there is office or representation.

CHAPTER VI

OF SOCIAL EXERCISE AND DAS FINANCIAL STATEMENTS

Art. 25. The social exercise will coincide with the calendar year.

Art. 26. For all the effects of law, CODEVASF will raise the financial statements at the end of the social exercise.

Art. 27. From the result of the exercise, they will be deducted, prior to any distribution, the accumulated damages and the provision for the income tax.

§ 1º Of the net profit for the financial year will be continued by the Executive Board to its destination, which will be submitted to the Board of Directors, observing the plots of:

I-five per cent for constitution of the legal reserve, until this range twenty percent of the Social capital ; and

II-twenty-five per cent, at the very least, of adjusted net profit, ascertained in each social exercise, intended for distribution of dividends.

§ 2º On the values of dividends and interest, as remuneration on equity capital, due to the National Treasury, will cover financial charges equivalent to the SELIC fee, from the closure of the social year to the day of the effective pick-up or payment, without prejudice to the incidence of moratorial interest when such pickup or payment not to be checked on the date fixed in law, assembly or deliberation of the Board of Directors.

§ 3º The daily rate for the update of the obligation to treat § 2º, during the five working days prior to the date of payment or pickup, will be the SELIC fee released on the fifth working day preceding the day of the effective discharge of the obligation.

Art. 28. The provision of annual accounts of CODEVASF, after pronouncement of the Board of Directors, shall be submitted to the Minister of State for National Integration for remittal to the Court of Auditors of the Union in the form of the Act.

CHAPTER VII

DAS GENERAL PROVISIONS

Art. 29. In case of extinction of CODEVASF, your assets and rights will revert to the Union and other legal persons participating in your capital, in proportion to the respective shares.

Art. 30. The President, the Directors, the members of the Board of Directors and the Fiscal Board of CODEVASF shall be dismissed as collateral for the exercise of their duties.

Single Paragraph. The holders of the posts that it treats the caput, as well the employees of CODEVASF invested in commissioned duties, are expected to present, in the act of possession and annually, declaration of goods.

Art. 31. It is provided to the President and Directors to delegate competence for the practice of administrative acts.

Art. 32. The Directorate will be publishing in the JournalOfficial of the Union, after approved by the Minister of State for National Integration ;

I-the regulation of tenders ;

II-the personnel regulation, with the rights and duties of employees, the disciplinary regime and the standards on ascertaining responsibility ;

III-on June 30 and December 30 of each year, the personnel framework, with the indication, in three columns, the total jobs and the number of jobs provided and vacant, discriminated by career or category ; and

IV-the plan of salaries, benefits, advantages and any other installments that compose and retribution of your employees.