MAGAZINE LUIZA S.A. PUBLICLY-HELD COMPANY
Corporate Taxpayer ID (CNPJ/MF) 47.960.950/0001-21 Company Registry (NIRE) 35.300.104.811
MAGAZINE LUIZA S.A. ("Magazine Luiza" or "Company"), in compliance with paragraph 4 of article 157 of the Law 6404 dated December 15th 1976, and as per the Corporate Law Act and the applicable regulations issued by Brazil's Securities and Exchange Commission (CVM) on article 358 dated January, 3rd, 2002, hereby informs its shareholders and the market in general that, on December 14th, it renewed its strategic alliance agreement ("Strategic Alliance Agreement") with BNP Paribas Cardif, Cardif do Brasil Vida and Previdência S.A., Cardif Capitalização S.A. and Cardif do Brasil Seguros and Garantias S.A (together known as "Cardif") and with Luizaseg Seguros S.A. ("Luizaseg"), in order to extend the rights and obligations set forth in the original agreements entered between the Company and Cardif ("Operating Agreement") and between the Company and Luizaseg ("Distribution Agreement"). The renewal calls for an extension of the previous agreements for 10 years, beginning January 1rst 2016, until December 31rst 2025.
For the renewal of the "Agreements", Magazine Luiza will receive on December 21rst 2015 a sum of R$ 330,000,000.00 (three hundred and thirty million reais). A portion of such amount is subject to the accomplishment of certain targets in the sale of insurance products over the period of the contract, including the launch of new products.
Furthermore, in order to implement the renewal of the "Distribution Agreement", Magazine Luiza and Cardif will carry out a capital increase in Luizaseg in the amount of R$ 55,000,000.00 (fifty five million reais) each.
In addition to the above mentioned amounts, Cardif and Luizaseg should continue to pay monthly commissions to Magazine Luiza and its affiliates for the distribution of its products.
São Paulo, December 15th, 2015.
Chief Financial Officer and Investor Relations Director
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