INDEBTEDNESS

Loans

The long-term amounts breakdown as follows by year of maturity:

	2008	2009
From 1 to 2 years	751,336	919,214
From 2 to 3 years	263,327	1,701,962
From 3 to 4 years	105,647	111,216
From 4 to 5 years	78,739	66,603
Over 5 years	814,758	523,515
	2,013,807	3,322,510

As provided in Resolution CVM 556/08, the transaction costs and issue premiums associated with fund raising by the Company and its subsidiaries were added to their financial liabilities, as shown in Note 16.f from our financial statements. Financing is secured by liens on fixed assets amounting to R$ 38,657 as of December 31, 2009 (R$ 66,680 in 2008), by guarantees in the amount of R$ 2,617,873 as of December 31, 2009 (R$ 1,440,451 in 2008) and promissory notes.

Some subsidiaries issued collaterals to financial institutions in connection with the amounts owed by some of their customers to such institutions (vendor financing). If a subsidiary is required to make any payment under these collaterals, this subsidiary may recover the amount paid directly from its customers through commercial collection. The maximum amount of future payments related to these collaterals is R$ 20,171 as of December 31, 2009 (R$ 18,786 in 2008), with maturities of no more than 211 days. As of December 31, 2009, the Company and its subsidiaries did not have losses or recorded any liabilities in connection with these collaterals. Some financing agreements of the Company and its subsidiaries have cross default clauses that require them to pay the debt assumed in case of default of other debts equal to or greater than US$ 10 million. As of December 31, 2009, there was no event of default of the debts of the Company and its subsidiaries.