Setting up

Document updated as of February 2012. Prices in US$ (US$1 = $19.625) corresponding to the month average of January.

March 2012

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Table of Contents

ACTUAL BUSINESS COSTS ............................................................................................................................... 3

1. STARTING A BUSINESS ENTITY ......................................................................................................... 3

1.1 STOCK COMPANIES .................................................................................... 3

1.2 LIMITED LIABILITY COMPANY ................................................................................ 6

2. COSTS OF SETTING-UP A BUSINESS .................................................................................................... 8

2.1 RENTAL OF PREMISES (M2).................................................................................. 8

2.2 PURCHASE OF PREMISES (M2) ............................................................................... 8

2.3 PURCHASE OF URBAN LAND (M2) ........................................................................... 8

2.4 HOUSING CONSTRUCTION COSTS ............................................................................ 8

2.5 LAND COST ................................................................................................ 9

3. ENERGY AND OTHER PUBLIC UTILITIES COSTS ....................................................................................... 9

3.1 WATER SUPPLY ............................................................................................ 9

3.4 ELECTRICITY ............................................................................................. 11

4. TELECOMMUNICATION COSTS ........................................................................................................ 12

4.1 FIXED TELEPHONY ........................................................................................ 12

4.2 LOCAL CALLS ............................................................................................ 12

4.3 INTERNATIONAL LONG DISTANCE CALLS .................................................................... 12

4.4 COMMUNICATIONS FROM FIXED TELEPHONES TO MOBILE TELEPHONES ...................................... 13

4.5 MOBIL TELEPHONY (ANTEL) ............................................................................. 13

4.6 INTERNET ACCESS ........................................................................................ 14

5. COST OF LABOR FORCE ................................................................................................................ 15

5.1 AVERAGE NOMINAL WAGES (IN US$) ..................................................................... 15

5.2 MANAGERS NOMINAL SALARIES (IN US$) ................................................................. 15

5.3 SOCIAL SECURITY CONTRIBUTIONS ......................................................................... 15

6.1 GENERAL CARGO TRANSPORTATION ....................................................................... 17

6.2 CEREALS TRANSPORTATION ............................................................................... 17

6.3 RICE TRANSPORTATION ................................................................................... 18

6.4 CONTAINERS TRANSPORTATION ........................................................................... 18

6.5 WOOD TRANSPORTATION ................................................................................ 19

6.6 LIVESTOCK TRANSPORTATION ............................................................................. 19

6.7 CONSTRUCTION TRANSPORTATION ........................................................................ 19

7. CAR RENTAL ............................................................................................................................ 20

COSTS RELATED TO PERSONNEL ..................................................................................................................... 21

1. PERSONALIZED HEALTH CARE ......................................................................................................... 21

2. HOUSING RENTAL ...................................................................................................................... 21

2.1 RENTAL OF HOUSING IN MONTEVIDEO ..................................................................... 21

2.2 SALE OF HOUSING IN MONTEVIDEO ....................................................................... 21

3. HOTELS IN MONTEVIDEO .............................................................................................................. 22

4. CABLE TELEVISION ..................................................................................................................... 22

5. WATER SUPPLY ......................................................................................................................... 23

7. ELECTRICITY ............................................................................................................................. 24

8. FIRST-RATE PRIVATE EDUCATION .................................................................................................... 25

8.1 ELEMENTARY SCHOOL .................................................................................... 25

8.2 HIGH SCHOOL ........................................................................................... 25

3

Actual Business Costs

1. Starting a Business Entity1 This section contains all the important information in regard to starting a business in Uruguay, including all the steps required for an entrepreneur to formally register a Stock Company (“Sociedad Anónima”) or a Limited Liability Company (LLC). Below you will find all the required official procedures to legally start operating a business according to the type of company you wish to incorporate or register.

1.1 Stock Companies

Shareholders Meeting

Cost: Notary fees, 5% of the capital (the minimum fee for any professional intervention may in no case be less than US$ 1,107)

Time to Complete: 1 working day.

Requirements: The meeting must establish the contracting parties; the name; the domicile; object or activity that will be carried out; capital, contributions, how profits and losses are to be assigned; administration regime, meetings and internal verification, where appropriate, appointment of the first Board of Directors or Administrator, as well as the trustee or the fiscal commission and establish their designation and the stipulated term of the company; stock nature or classes, amount, conditions and emission and other characteristics; the term may exceed the stipulated 30 years.

Stock Companies By-Laws Approval By-Laws are subject to the approval of the National Internal Audit Office (AIN). This body is an executing unit of the Ministry of Economics and Finance (MEF), its main role is the enforcement of stock companies legal By-laws and the subscriptions and minimum paying in of capital.

The administrative procedure must be carried out in person. You may choose between the standard By-Law developed by the National Internal Audit Office (which can be acquired in the aforementioned body), or a self-developed By-Law.

Cost: Standard procedure US$ 560

Execution term: 30 calendar days immediately following its incorporation

Time to Complete: 30 calendar days since it was received

Requirements:

i. Original By-Law or a notarized copy with signatures certification and their corresponding seals.

ii. Certificate of subscription and paying in of capital with its corresponding stamps, according to the models available at the web site: www.ain.gub.uy.

1 Source: Online Portal (www.portaldelaempresa.gub.uy)

http://www.ain.gub.uy/

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iii. Approval application note with its corresponding copy including the following information of the petitioner: Domicile, telephone and fax. The note must be addressed to the National Internal Auditor and must be signed by an authorized person.

One-Stop Shop: Registration of newly incorporated Stock Companies One-Stop Shop is a procedure between the Social Security Bank (BPS) and the Tax Administration Department (DGI). The DGI is an executing unit of the Ministry of Economics and Finance (MEF) and a supervising and collecting agency. The BPS is an independent entity of the Uruguayan State and a competent body in regard to the provision and coverage of social security.

Cost: Professional Stamp

Execution Term: 30 calendar days starting from the articles of incorporation date

Requirements: i. Forms: Access to in DGI and BPS ii. Documentation to be Submitted

- Two photocopies of the shareholders’ ID card - Notarial certificate and two photocopies including: Signature of all the

founders, information of the founders, tax domicile, articles of incorporation date.

National Insurance Bank (BSE) The National Insurance Bank (BSE) is an independent entity of the Uruguayan State. Employers that have dependent personnel must start proceedings before the aforementioned entity in order to obtain the Accidents at Work and Occupational Diseases Insurance.

Cost: Without cost

Execution Term: At the time of personnel hiring

Time to Complete: 1 working day

Requirements: i. Form No. 1990, Application for Accidents at Work and Occupational Diseases

Insurance. This form can be obtained at the BPS premises or through their web site.

ii. For companies with Forestry Activity –logging and harvesting of forests, they have to submit proof as registered rural companies before the BPS, registered under the Rural Sector Employers Contribution according to Law No. 15.852 (Aporte Unificado).

Registration of Company with Personnel:

Businesses that start operating must perform the corresponding procedure before the General Inspection of Labor and Social Security at the Comptroller Documents Division (IGTSS). The IGTSS is a dependency of the Ministry of Labor and Social Security (MTSS) which its core competence is the legal protection of workers.

Cost: Without cost

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Execution Term: 10 working days starting from the following day that the business started operating

Time to Complete: 15 working days

Requirements: i. Original Registration Record in the BPS and DGI ii. Labor Registry Book iii. BPS Sheet (original or photocopy)

Registration at the National Registry of Commerce

Once the By-Laws are approved by the AIN the procedures for the registration of the company must take place before the Register of Legal Persons -National Registry of Commerce Department (RNC), for the purpose of complying with part of the necessary requirements for the acquisition of the legal entity. The RNC is a dependency of the General Directorate of Registries (DGR), executing unit of the Ministry of Education and Culture.

Cost: One Registration Fee (US$ 41)


Requirements: i. First notarized copy of the articles of incorporation issued as a private

document with Notarial Certification of signatures or first copy of the public deed.

ii. Notarized copy of the approved By-Law by the AIN iii. Register Draft of Business Entities (Form approved by the DRG) iv. Notarial certification or record of the company’s registration number in the

Fiscal Code Number for Taxpayers (R.U.T.) v. Payment slips from ICOSA (Tax on the Incorporation of Uruguayan

Corporations). Publication of the Stock Company By-Law: With the publication in the Official Gazette or any other journal of choice, the company finally starts operating officially as a Stock Company.

1. Official Gazette

Cost: US$ 23.3 (Price per centimeter of column 6.2 cm)


Requirements: i. Certificate of registration in the National Registry of Commerce (RNC)

2. Other Journal:

Cost: US$ 41 to US$ 205


Requirements: i. Certificate of registration in the National Registry of Commerce (RNC)

6

1.2 Limited Liabil ity Company

Partners Meeting

Cost: Notary fees, 5% of the capital (the minimum fee for any professional intervention may in no case be less than US$ 1,107)

Time to Complete: 1 working day.

Requirements: The meeting must establish the contracting parties; the name; the domicile; object or activity that will be carried out; the capital stock; the number and amount of shares for each partner and the allocated value to in-kind contributions; how profits and losses are to be assigned; administration regime, representation and internal audit system of the company; and the stipulated term of the company (no longer than 30 years)

One-Stop Shop: Registration of Partnerships with Contract One-Stop Shop is the unified procedure between the Social Security Bank (BPS) and the Tax Administration Department (DGI) for formally registering a company. The DGI is an executing unit of the Ministry of Economics and Finance (MEF) and a supervising and collecting agency. The BPS is an independent entity of the Uruguayan State and a competent body in regards to the provision and coverage of social security.

Cost: Professional Stamp

Execution Term: Within the 24 hours following the signature of the contract

Requirements: i. Remote Connection and Remote Connection Contract Application Forms.

Access to in DGI and BPS. ii. Documentation to be Submitted

- Two photocopies of all the partners ID cards - Original or certified copy of the corporate contract - Simple photocopy of the corporate contract - Notarial certification (original and two simple photocopies), including:

Information of all the partners that enter the company, names of the administrators and representatives, legal status and complete representation (including date of the contract), tax domicile.

National Insurance Bank (BSE) The National Insurance Bank (BSE) is an independent entity of the Uruguayan State. Employers that have dependent personnel must start proceedings before the aforementioned entity in order to obtain the Accidents at Work and Occupational Diseases Insurance.

Cost: Without cost

Execution Term: At the time of the personnel hiring

Time to Complete: 1 working day

Requirements: i. Form No. 1990, Application for Accidents at Work and Occupational Diseases

Insurance. This form can be obtained at BPS premises or through their web site.

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ii. For companies with Forestry Activity –logging and harvesting of forests, they have to submit proof as registered rural companies before the BPS, registered under the Rural Sector Employers Contribution according to Law No. 15.852 (Aporte Unificado).

Registration of a Company with Personnel:

Businesses that start operating must perform the corresponding procedure before the General Inspection of Labor and Social Security at the Comptroller Documents Division (IGTSS). The IGTSS is a dependency of the Ministry of Labor and Social Security (MTSS) which its core competence is the legal protection of workers.

Cost: Without cost

Execution Term: 10 working days starting from the following day that the business started operating


Requirements: i. Original Registration Record in the BPS and DGI

ii. Labor Registry Book iii. BPS Sheet (original or photocopy)

Registration at the National Registry of Commerce

Once the articles of incorporation of the Limited Liability Company is granted, the registration of the company must take place before the Register of Legal Persons -National Registry of Commerce Department (RNC), for the purpose of complying with part of the necessary requirements for the acquisition of the legal entity. The RNC is a dependency of the General Directorate of Registries (DGR), executing unit of the Ministry of Education and Culture.

Cost: One Registration Fee (US$ 41)

Time to Complete: 30 days from the incorporation of the corporate contract

Requirements: i. First notarized copy of the articles of incorporation issued as a private

document with Notarial Certification of signatures or first copy of the public deed.

ii. Register Draft of Business Entities (Form approved by the DRG) iii. Payment slips from ICOSA (Tax on the Incorporation of Uruguayan

Corporations).

Publication of the Incorporation of the Limited Liability Company (LLC): With the publication in the Official Gazette or any other journal of choice, the company finally starts operating officially as a Limited Liability Company.

3. Official Gazette

Cost: US$ 23.3 (Price per centimeter of column 6.2 cm)


Requirements:

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i. Certificate of registration in the National registry of Commerce (RNC)

4. Other Journal:

Cost: US$ 41 to US$ 205


Requirements: ii. Certificate of registration in the National Registry of Commerce (RNC)

2. Costs of Setting-up a Business2

2.1 Rental of Premises (m2)

Minimum (US$)

Average (US$)

Maximum (US$)

Offices 9 14 38

Commercial Premises 7 13 45

Industrial Premises 2.5 4 6

2.2 Purchase of Premises (m2)

Minimum (US$)

Average (US$)

Maximum (US$)

Offices 1,600 2,300 3,900

Commercial Premises 1,200 1,750 4,500

Industrial Premises 230 450 590

2.3 Purchase of Urban Land (m2)

Use Minimum

(US$) Average

(US$) Maximum

(US$)

Residential 450 1,050 9,000

Logistic 7 29 50

Industrial 4 18 35

2.4 Housing Construction Costs3

Housing Type

Description

Price

(US$ / m2)

1 Economic at ground floor level 874

2 Economic duplex 885

3 Average (duplex or not) 1,424

4 Sumptuary with heating system (duplex or not) 1,796

5 Economic collective housing at ground floor level without infrastructure 764

5a Same as item 5 but including its own infrastructure 1,072

6 Economic or average collective GF with elevator, without infrastructure 729

2 Source: Villamide Real Estate Advisory Services – Valid as of March, 2012. Approximate values in current dollars for Montevideo, excellent locations for each use. 3 Note: - The above information is for the second half of 2010. – Price per m

2 includes: Building materials,

remunerations, depreciation of equipments, operating expenses and profits of the construction company, Value Added Tax (VAT) and Social Laws (contributions to B.P.S.). Costs do not include land value, professional fees, costs of construction permits, real estate commissions. Source: National Statistics Institute

9

6a Same as item 6 but including its own infrastructure 821

7 Economic or average collective duplex without infrastructure 885

7a Same as item 7 but including its own infrastructure 1,030

8 Economic Tower with elevator 734

9 Average Tower with elevator 760

10 Sumptuary Tower with elevator and heating system 1,182

2.5 Land Cost 4

Productive Destination

Area Leased Value

Total

Average (ha)

Total Average

(US$/ha/year) (hectares) ( Thousands

of US$)

Total 1,104,593 353 141,539 128

Rain-fed Agriculture 296,874 387 76,835 259

Rice 47,057 334 6,125 130

Agriculture/Cattle Raising 179,308 286 25,501 142

Rice/Cattle Raising 3,234 359 353 109

Agriculture/Dairy 7,379 164 879 119

Cattle Raising 529,318 411 27,324 52

Dairy 15,090 104 1963 130

Dairy/Cattle Raising 1,688 77 187 110

Forestry 23,402 397 2196 94

Other sectors (swine, citrus, etc) 1,243 121 177 303

3. Energy and Other Public Utilities Costs5

3.1 Water Supply

3.1.2 Non-domestic private consumption, except industrial consumption

Volumes Montevideo or other

Departments up to 1000 m3

Montevideo or other Departments Over 1000 m

3

US$ / m3 3.1 2.5

3.1.3 Industrial Consumption

3.1.3.1 Montevideo or other Departments

Volumes Up to 1000

m3

From 1000 to 2000 m

3

From 2000 to 2500 m

3

From 2500 to 3000 m

3

From 3000 to 3500 m

3

Over 3500 m

3

US$ / m3 3,.1 2.4 2.2 2.1 2 1.8

3.1.3.2 Maldonado Seaside Resort

Volumes Up to 1000

m3

From 1000 to 2000 m

3

From 2000 to 2500 m

3

From 2500 to 3000 m

3

From 3000 to 3500 m

3

Over 3500 m

3

US$ / m3 4.37 3.42 3.22 2.02 2.84 2.67

4 Source: Agricultural Statistics Office, Ministry of Livestock, Agriculture and Fishery – Year 2011 5 Source: Obras Sanitarias del Estado (O.S.E.) – March, 2012.

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3.1.4 Fixed Monthly Charges

Location Connections

13 mm 19 mm 25 mm Over 25 mm

Montevideo or other Departments (not along the coast) 4.93 7.27 11.71 49.6

Seaside resorts in Canelones, Maldonado and Rocha 9.58 14.27 22.92 99.21

3.1.4.1 Sewage Costs6

Activity Sector

Cold Stores, Slaughterhouses

and Textiles Retail stores,

Bakeries, Confectioneries

and Pasta

Oils, Soaps and Non-Alcoholic

Beverages

Other Industries and Business Paper Mills, Dairy

Products, Food and Tanneries

Fixed Charge (monthly)

103.62 51.81 77.58 5.33

3.2 Fuel7

Price per Liter

PREMIUM GASOLINE 97 (unleaded) 1.89

SUPER GASOLINE 95 (unleaded) 1.81

SPECIAL GASOLINE 87 (unleaded) 1.80

GAS OIL 1.75

DIESEL OIL 1.28

HEAVY FUEL OIL 0.73

MEDIUM FUEL OIL 0.89

Price per Kg.

SUPERGAS 1.40

3.3 Gas8

MARKET RATE MONTEVIDEO

Annual Consumption Range Fixed Charge

(US$) Charge per m3

consumed (US$)

Plus Natural From 601 to 4000 m3 51.87 1.03

Top Natural From 4001 to 12000 m3 65.68 1.03

GENERAL SERVICE (Regulated service

for the business sector)

Over 12,000 m3 83.91 1.03(1)

0.94 (2)

(2) Applies to monthly consumption of up to 1000 m3

(3) Applies to monthly consumption of Over 1000 m3

6 Note: Monthly fixed charges. 7 Source: Administración Nacional de Combustibles, Alcohol y Portland (A.N.C.A.P.) – data updated as of January 13, 2012. Note: Current prices include taxes. One Gallon is equivalent to 3.785 Liters.

8 Note: Fees include VAT. Source: Montevideo Gas y Conecta – February, 2012

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3.4 Electricity9

Below are the current electricity fees for average and large consumers. Both have different electricity prices for three different time periods: Peak Hour, Normal Hour, Off-Peak Hour, and price per maximum power demanded throughout the entire month, in addition to a fixed charge. When the electricity supply is delivered, power and electricity prices differ because of different voltage levels; in such a way that while voltage levels increase, prices decrease. Distribution of electricity fees for time periods is as follows:

During the period subject to the usual official time: - Peak Hours: From 6:00 p.m. to 10:00 p.m. - Normal Hours: From 7:00 a.m. to 6:00 p.m. and from 10:00 p.m. to 12:00

(midnight) - Off-Peak Hours: From 0:00 to 7:00 a.m.

During the period subject to the official times forward: - Peak Hours: From 7:00 p.m. to 11:00 p.m. - Normal hours: From 0:00 to 01:00 a.m., from 8:00 a.m. to 7:00 p.m. and

from 11:00 p.m. to 12:00 (midnight) - Off-Peak Hours: From 1:00 a.m. to 8:00 a.m.

3.4.1 Average Consumers

On an optional basis for services that present a contracted power rating higher than or equal to 10kw or under or equal to 40Kw at any hour (between the peak-normal time period), and by services regulations with a contracted power rating higher than 40kw at any hour.

FEE Level of

Voltage kV

Electricity Price US$ / kWh Maximum Power US$

/ kW

Fixed Monthly

Charge US$ Off-Peak Normal Peak

MC1 0.23 – 0.40 0.057 0.136 0.315 10.721

19.89 MC2 6.4 - 15 - 22 0.056 0.124 0.246 6.915

MC3 31.5 0.055 0.121 0.203 4.046

3.4.2 Large Consumers

For services that present an average consumption equal to or higher than 90.000 kWh per month and a contracted power rating equal to or higher than 200 kWh, according to regulations and on an “optional” basis.

FEE Level of

Voltage kV

Electricity Price US$ / kWh Maximum Power US$

/ kW

Fixed Monthly

Charge US$ Off-Peak Normal Peak

GC1 0.230 – 0.400 0.056 0.108 0.333 14.125 414.436

GC2 6.4 - 15 - 22 0.054 0.103 0.268 9.289 0.000

GC3 31.5 0.054 0.101 0.226 5.656 0.000

GC4 63 0.054 0.101 0.208 2.227 0.000

GC5 110 - 150 0.054 0.099 0.172 1.559 0.000

9 Source: Administración Nacional de Usinas y Transmisiones Eléctricas (U.T.E.). Valid Fees as of January 1, 2012.

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4. Telecommunication Costs10

4.1 Fixed Telephony

Fixed telephony costs are the same for urban and rural areas. In this report the data is in US$ without VAT included (22%).

Connection Fee

New Service Family Home 47.1 55.6

Other Clients 47.1 55.6

Transfer(1) Family Home 34.7 41.0


Refundable Deposit

New Service Family Home 47.9 46.3


Monthly Fee

New Service Family Home(2) 8.7 8.4


4.2 Local Calls 11

This fee applies to all calls between telephony services located at any point within the national territory, and it is from fixed telephony to fixed telephony. Tally value: US$ 0.057.

HOURS

From 0:00 to 9:00 am and from 9:00 pm to 12:00

(midnight)

From 9:00 am to 10:00 am and from 6:00 pm to 9:00 pm

From 10:00 am to 6:00 pm

1 Tally / 5 minutes 1 Tally / 3 minutes 1 Tally / 1 minute

4.3 International Long Distance Calls 12

Countries or Regions Normal Fee US$

per minute

Buenos Aires, Curitiba, Porto Alegre, Sao Paulo, Santiago de Chile and Asunción

0.23

Rest of Argentina, Rest of Brazil, Rest of Chile, United States, Spain, Canada, Italy and Israel

0.26

Australia, France, U.K., Bolivia, Ecuador, Rest of Paraguay, Mexico, Peru, Germany and Switzerland

0.42

Colombia, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Panama, Puerto Rico, Dominican Republic, Democratic Republic of Congo and Venezuela

0.47

Rest of the world 0.83

Insular (Asunción, Cuba, North Korea, Kiribati, Falklands, Nauru, Niue, Is. Norfolk, Santa Lucia, St. Vincent and the Grenadines and Vanuatu)

1.59

10 Source: Administración Nacional de Telecomunicaciones (A.N.T.E.L.) – February, 2012. Notes (1): Companies or Institutions that have over ten telephone services and require their simultaneous transfer will benefit from reductions over the transfer fee. (2): The client “Family Home” has up to 50 free of charge tallies available per monthly billing period. 11 Note: The current fee for the hourly period of 0:00 to 9:00 a.m. and from 9:00 p.m. to 12:00 (midnight) is also valid for Saturdays, Sundays and non-working holidays for 24hs. Source: Administración Nacional de Telecomunicaciones (A.N.T.E.L.) – February, 2012 12 Note: Fees do not include VAT Source: Administración Nacional de Telecomunicaciones (A.N.T.E.L.) – February, 2012.

13

Border Traffic: Colonia - Buenos Aires 0.23

Border Traffic: Bella Unión and Tomás Gomensoro with Monte Caseros; Paysandú with Colón and Concepción del Uruguay; Fray Bentos with Gualeguaychú; Salto with Concordia

0.13

4.4 Communications from Fixed Telephones to Mobile T elephones

Normal Fee US$ / Minute

Minute from ANCEL cell phone 0.19

Minute from MOVISTAR cell phone 0.19

Minute from CTI cell phone 0.19

4.5 Mobil Telephony (ANTEL)

ANTEL offers users a large variety of plans according to their use and convenience: Prepaid Plan: Consists on the top-up account by purchasing a card which its cost varies according to the following chart:

Card Cost (US$) 0.5 1.3 2.5 5.1 10.2 15.3 25.5

Price per Minute (US$)

0.3

Contracts with or without Limited Credit:

Minimum Consumption

(US$)

Price per Minute

Normal Fee (US$)

Reduced Fee (US$)

Contract without Limited Credit

16.97 0.22 0.11

36.33 0.19 0.09

67.82 0.17 0.09

Contract with Limited Credit 16.76 0.23 0.12

16.97 0.30 0.12

Normal Fee: Mondays to Fridays from 9 a.m. to 9 p.m. Reduced Fee: Mondays to Fridays from 9 p.m. to 9 a.m. Saturdays, Sundays and non-working Holidays (1/1, 5/1, 7/18, 8/25 and 12/25) Blackberry Plan:

Monthly Fee (US$) Includes

27.97 Flat fee for e-mail and terminal navigation

(Does not include Voice)

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4.6 Internet Access

Antel provides family and personal access to the Internet, offering the possibility to permanent access the Internet without the consumption of telephone tallies, allowing the simultaneous use of telephone and Internet. Antel offers three possibilities according to the clients needs: ADSL Flat Fee, ADSL by Traffic or ADSL Mobile. ADSL Flat Fee:

Plan Name Speed Monthly Fee (US$)

Flat Fee 5 Mega Up to 10,240 kbps for downloads

Up to 512 Kbps for uploads 96.31





Flat Fee 1.5 Mega Up to 3,072 kbps for downloads




Flat Fee 384 Up to 1,024 kbps for downloads


ADSL by Traffic:

Plan Name Speed Monthly Fee

ADSL 2 Giga Up to 3.072 kbps for downloads Up to 512 Kbps for uploads

10.09

ADSL 5 Giga Up to 3.072 kbps for downloads








ADSL Mobile:

Plan Name Speed Monthly Fee











15

5. Cost of Labor Force13

5.1 Average Nominal Wages (in US$)

Positions

Annual Sales for

less than 6 millions of

dollars

Annual sales between 6

and 19 millions of

dollars

Annual Sales for Over 19

millions of dollars

Superior Levels 6,217 6,165 6,273

Intermediate Levels 3,052 3,080 3,427

Dependency Levels: 1,263 1,383 1,450

Administration, Finance and Personnel sectors


Commercial sector


Production sector

5.2 Managers Nominal Salaries (in US$)

Positions Market General

Average

Domestic Companies

Average

International Companies

Average

General Manager 12,371 10,981 13,326

Financial and Business Manager 7,365 6,796 7,669

Systems Manager 5,637 5,091 6,183

Commercial Manager 8,104 7,941 8,236

Production Manager 7,527 6,944 7,794

Human Resource Manager 5,659 5,355 5,883

5.3 Social Security Contributions 14

The following chart contains the tax percentages to social security, including contributions made by the employee (which are deducted from their wage while the company acts as a withholding agency) and those made by the company. Taxes are expressed in percentages of each employee’s nominal wage. These are fixed percentages, except for the Personal Income Tax on Residents (IRPF) which is calculated differently.

Taxes Employee Contribution15 Company Contribution

Social Security (BPS) 15% 7.5%

Health Insurance (1) (2)

Personal Income Tax on Residents (IRPF) According to categories (3) 0%

Tax on Retributions 0.125% 0.125%

(1) Nominal wage up to 2.5 BPC (Benefits and Contributions Threshold)16 : 3% contribution Nominal wage higher than 2.5 BPC: 4.5% contribution with no children and 6% with children.

13 Source: Remunerations Survey 2010-2011 – Price Waterhouse Coopers – The above information is for the second half of 2011. Note: Figures can be subject to changes according to variations on the exchange rate. 14 Source: www.empresasbps.com.uy – February, 2012 and DGI 15 Included in the nominal wage 16 BPC value valid as of 2012 : US$ 123.16

16

(2) Holders of Sole Proprietorships with up to one employee with health coverage (as dependent workers): Contribute 8% BPC by concept of sickness pay.

- Sole proprietorships with up to one employee are entitled to health coverage (for the holder and for their minors or disabled dependents) and sickness pay. In order to be entitled to these benefits they must contribute:

No children in charge: 9.5% over a taxable amount of 6.5 BPC

11% over a taxable amount of 6.5 BPC - Business holders: Contribute 5% over the total sum of nominal wages of employees in payroll. - Business holders contribute to the Complementary Mutual Fund calculated as

follows:

CCM=(mutual fund*quantity of employees) – 8% (sum of total taxable amount of employees in payroll)

(3) In order to determine the monthly retention of IRPF all income derived from a dependent relationship (nominal remunerations) must be added and all irrecoverable credits must be deducted. Thus, the obtained amount will be levied according to the following income scale:

FROM (US$) UP TO (US$) RATE (%)

0 862 exempted

862 1,232 10

1,232 1,847 15

1,847 6,158 20

6,158 12,316 22

12,316

25

The main feature of this tax is that it is determined by progressive rates linked to an income scale. This means that the corresponding monthly income is entered into the scale

and then the corresponding rate of each section is applied to the income portion

comprehended in each section of the scale. The following contributions may be withheld from tax payment:

Health Care Insurance, Benefit Funds or Conventional Insurance, contributions to the Tax on Retributions (Fondo de Reconversión Laboral), and to the Notarial Health Care Fund.

Retirement Contributions to the Social Security Bank, Banking Retirement and Pension Fund, Retirement and Pension Fund for University Professionals, Retirement and Pension Funds of the Armed Forces, General Directorate of Police Social Assistance, Notarial Social Security Fund and the Administration Companies for Social Security Complementary Funds.

Endowment fund (Fondo de Solidaridad) with its additional.

Medical assistance for under age children in charge of the taxpayer (US$610 annually). In the case of minors or children who have reached the age of majority and have been legally declared disabled this deduction will be duplicated. This deduction may be carried out in all cases, whether the expense has been made or not. The deduction will be made through the father or mother`s payment; or from both, each one of them paying 50% of the corresponding value.

17

In the same way as in the determination of the tax above, the sum of all the deductions will be entered into an income scale as shown in the chart below:

FROM (US$) UP TO (US$) RATE (%)

0 369 10

369 985 15

985 5,296 20

5,296 11,454 22

11,454

25

The tax to pay will be the result of the subtraction of the tax calculated above minus the deductions entered into the income scale. Sectors other than the construction and rural sectors must hire an accidents at work insurance, since this insurance is already included in the contribution to the Social Security Bank (BPS) for the abovementioned sectors.

6. Transportation Cost17 These are the sector benchmark prices developed by the National Transport Directorate, dependency of the Ministry of Transport and Public Works. (They are not mandatory)

6.1 General Cargo Transport ation

Distance in Km Price per km (US$) Price per km (US$) Price per km (US$)

Equipment 28t Equipment 15t Equipment 10t

From 41-70 5.3 4.5 4.3

From 71 to 100 5.0 3.8 3.6

From 101 to 180 4.3 3.3 3.2

From 181 to 280 3.6 2.8 2.6

From 280 to 450 3.0 2.3 2.2

Over 450 2.9 2.2 2.1

Minimum Travel (US$) 195.0 169.4 159.7

Average Value of Waiting Time (US$)

14.5 12.7 12.0

6.2 Cereals Transportation

Distance in Km Price per km (US$) Price per Ton/km (US$) Price per Ton/km (US$)

Equipment 28t Equipment 21t

Up to 40 7.5 0.3 0.4

From 41-50 5.9 0.2 0.3

From 51 to 60 5.6 0.2 0.3

From 61 to 80 5.0 0.2 0.2

From 81 to 100 4.8 0.2 0.2

From 101 to 150 4.7 0.2 0.2

From 151 to 200 4.0 0.1 0.2

From 201 to 300 3.7 0.1 0.2

From 301 to 400 3.2 0.1 0.2

Over 400 3.0 0.1 0.1

Minimum Travel(US$) 190.7

Average Value of Waiting Time(US$)

13.3

17 Source: National Transport Directorate– November, 2010. Note: In every case, prices per kilometers refer to

distances covered by the loaded vehicle. All costs have been considered, no VAT included, or tolls if applicable.

18

6.3 Rice Transportation

Distance in Km Price per km (US$) Price per Ton/km (US$)

Equipment 28t

From Farm to Mill

Up to 40 7.85 0.28

From 41 to 60 6.11 0.22

From 61 to 80 5.25 0.19

From 81 to 100 5.15 0.18

From 101 to 130 4.99 0.18

Over 130 4.54 0.16

From Warehouse to Warehouse

From 160 to 300 3.87 0.14

From 301 to 450 3.16 0.11

Over 450 2.90 0.11

Minimum Travel(US$) 214.93


15.39

6.4 Containers Transportation 18

Location Price of the Journey (US$) Price of the Journey (US$)

Equipment 15 t Equipment 28 t

Montevideo 177.4 195.6

Libertad 228.8 259.7

San Jacinto 228.8 259.7

Villa Rodríguez 297.7 330.3

Florida 370.5 450.4

Nueva Helvecia 427.3 517.1

Maldonado 549.5 667.0

Colonia 549.5 667.0

Trinidad 571.4 694.3

Nueva Palmira 734.4 889.8

Fray Bentos 814.8 990.1

Melo 1,003.8 1,215.9

Paysandú 1,003.8 1,215.9

Tacuarembó 1,003.8 1,215.9

Salto 1,233.4 1,497.4

Rivera 1,182.5 1,497.4


12.2 13.2

18 Note: Montevideo is considered the Origen/Final Destination. The indicated loads include the containers weight. The same prices were used for locations with similar distances. In cases where the aforementioned can´t be applied, the most proximate location price is considered, adjusting the difference of kilometers covered to the corresponding unit price.

19

6.5 Wood Transportation 19

Tied Logs

Stockpile Distance in km Price per Journey (US$)

Up to 3 19.2

Up to 10 27.0

Up to 30 97.0

Loose Logs

Distance in km Price per Ton (US$)

Up to 50 7.1

From 51-100 13.1

From 101-150 16.6

From 151-250 24.4

From 251-350 31.1

From 351-450 37.9

Over 450 46.2

6.6 Livestock Transportation

Distance (km) Price per km (US$)

Equipment 18t Equipment 15t Equipment 12t Truck 9t

From 51 to 100 3.9 3.5 3.4 2.9

From 101 to 140 3.1 2.9 2.6 2.2

From 141 to 250 2.7 2.5 2.3 2.0

From 251 to 350 2.7 2.5 2.3 1.9

From 351 to 450 2.6 2.4 2.2 1.9

Over 450 2.6 2.4 2.2 1.9

Minimum Travel(US$)

223.6 196.5 192.9 162.2

6.7 Construction Transportation

Price per m3 – kilometer (US$)

Equipment 9t Equipment 14t Equipment 28t

Cartage Road Work

0.5 0.3 0.2

Cartage Urban Work

0.6 0.4 0.3

Cartage per Hour (Three hours

minimum) 25.8 28.0 30.9

19 Prices for wood transportation refer to the complete journey. Drivers do not intervene in the loading or unloading operations and journeys for devolution and classification of wood were not taken into consideration.

20

7. Car Rental20

Car rental fees in Montevideo:

MODEL Daily Fee (US$)

FIAT STRADA PICK UP 46

CHEVROLET SPARK o similar 58

CHEVROLET AGILE 1.4 o similar 68

CHEVROLET AVEO 1.6 o similar 79

HYINDAI ACCENT 1.6 o similar 88

TOYOTA COROLLA 2.0 o similar 115

CHEVROLET ZAFIRA 2.0 o similar 140

20 Note: Fees include VAT, collision and vehicle theft waiver (Charge for waiver obligations US$ 500.OOO), Unlimited Mileage. Source: Europcar March, 2012

21

Costs Related to Personnel

1. Personalized Health Care

Costs for some of the Personalized Health Care Institutions:

Institution Plans

Summum

Summum Plan (Primary Care)

Under the age of 18: US$ 90

Adults: US$ 120

Summum Classic Plan


Adults: US$ 150

Summum Classic Plus Plan


Adults: US$ 225

Hospital Británico

0 to 18 year olds: US$ 101 (Discounts for quantity of children)

18 to 29 year olds: US$ 120





2. Housing Rental 21

2.1 Rental of Housing in Montevideo

Housing Rental (Coastline) (Approx. 150 m2)

Minimum (US$) Average (US$) Maximum (US$)

Apartment 1,200 1,750 3,500

Home 1,300 1,900 3,900

2.2 Sale of Housing in Montevideo

Sale of Housing (Coastline) (Approx. 150 m2)

Minimum (US$) Average (US$) Maximum (US$)

Apartment 159,000 220,000 495,000

Home 175,500 245,000 535,000

21 Source: Villamide Real Estate Advisory Services – Valid as of March, 2012. Values in current dollars.

22

3. Hotels in Montevideo22 Fees for hotels in Montevideo:

HOTELS IN MONTEVIDEO LOCATION CATEGORY FEE FROM (US$)

Belmont House Carrasco ***** 194

Sheraton Montevideo Hotel Punta Carretas ***** 186

Four Points by Sheraton Montevideo Downtown ***** 177

Radisson Montevideo Victoria Plaza Hotel Downtown ***** 157

Cala di Volpe Boutique Hotel Punta Carretas **** 140

NH Columbia Hotel Old Downtown **** 130

Best Western Pedro Figari Hotel Carrasco **** 127

Palladium Hotel Puerto del Buceo **** 120

Cottage Hotel Carrasco *** 119

Marti Apart Hotel Pocitos **** 115

Punta Trouville Apart Hotel Pocitos **** 110

Plaza Fuerte Hotel Historical center **** 104

Hosteria del Lago Airport *** 100

Pocitos Plaza Hotel Pocitos **** 93

Armon Suites Pocitos **** 92

Crystal Palace Hotel Downtown **** 92

Lafayette Hotel Downtown **** 91

Days Inn Montevideo Tres Cruces *** 88

Holiday Inn Montevideo Downtown **** 88

Oxford Hotel Downtown **** 87

Balmoral Plaza Hotel Downtown **** 82

Hispano Hotel Downtown *** 70

Lancaster Hotel Downtown *** 67

Europa Hotel Downtown *** 66

California Hotel Downtown *** 60

Tres Cruces Hotel Tres Cruces *** 40

4. Cable Television23

TCC Nuevo Siglo Cablevisión Montecable

Monthly Cost (US$) 43 42 41 42

22 Note: All fees are charged per room and per night and taxes are not included Source: Reservas.net – February, 2012 23 Source: Montecable, TCC, Nuevo Siglo, Cablevisión. – March, 2011

23

5. Water Supply24

Fees for domestic consumption are as following:

Consumption per Month Location Price per

m3

Up to 5 m3 Montevideo or other Departments 3.66

Seaside Resort of Maldonado 4.7

Over 5 to 10 m3 Montevideo or other Departments 7.32


Over 10 to 15 m3 Montevideo or other Departments 0.73


Surpluses of 15 up to 20 m3 Montevideo or other Departments 1.87








Surpluses of 50 m3 Montevideo or other Departments 3.47


6. Gas25

Natural Gas – Montevideo Residential Fixed Charge

(US$) Charge per m3 (US$)

From 0 to 3000 m3 of annual consumption 11.1 1.1

Over 3000 m3 of annual consumption 18.1 0.9

Natural Gas – South Area Fixed Charge (US$) Charge per

m3 (US$)

Charge for Connection

(US$)

Residential 6.4 0.5 121.7

Natural Gas – Paysandú Fixed Charge

(US$) Charge per

m3 (US$)

Charge for Connection

(US$)

Residential 6.4 0.5 121.7

24 Source: O.S.E – March, 2012 25 Note: Fees with VAT included. Source: Montevideo Gas y Conecta – March, 2012

24

7. Electricity26

The standard residential fee is for services with residential consumption modality whose

contracted power is less or equal to 40 kW:

Electricity Consumption Charge: US$/kWh

1 kWh to 100 kWh (monthly) 0.16

101 kWh to 600 kWh (monthly) 0.22

601 kWh and up 0.25

Contracted Power Charge: 2.10

Fixed Monthly Charge (US$): 6.33

The double hour residential fee (Optional) is for services with residential consumption

modality whose contracted power is higher or equal to 3.3 kW and less or equal to 40 kW and

for clients that mainly consume in the off-peak time period.

Electricity Consumption Charges: US$/kw h

Peak 0.29

Off-Peak 0.11

Contracted Power Charge 1.98

Fixed Monthly Charge (US$): 12.63

Energy charges are distributed in two time periods, during each day that make up the monthly

invoice, according to the following detail.

During the period subject to the usual official time: • Peak Hour: From 5:00 p.m. to 11:00 p.m.

• Off-Peak Hours: From 0:00 to 5:00 p.m. and from 11:00 p.m. to 12:00 (midnight)

During the period subject to the official times forward: • Peak Hour: From 6:00 p.m. to 12:00 (midnight).

• Off-Peak Hour: From 0:00 to 6:00 p.m.

26 Source: Administración Nacional de Usinas y Transmisiones Eléctricas (U.T.E.). Fee valid as of 1

st of January, 2012.

25

8. First-Rate Private Education 27

8.1 Elementary School

Monthly Fee (US$) Tuition (US$) (*)

Pre-School

2 years 219 219

3 years 260 260

4 years 377 377

5 years 471 469

Elementary School

From 1st grade to 3rd grade 510 507

From 4th grade to 6th grade 555 550

8.2 High School

Monthly Fee (US$) Tuition (US$) (*)

1st to 4th grade 573 568

5th to 6th grade 520 515

Family Discounts

2nd Child 20% Discount

3rd Child 50% Discount

4th and up 100% Discount

27 Note(*):This fee is charged once a year. Source: La Mennais School, www.lamennais.edu.uy – March, 2012