LOJAS RENNER S.A. C.N.P.J./M.F. N / N.I.R.E PUBLIC HELD CORPORATION WITH AUTHORIZED CAPITAL

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1 LOJAS RENNER S.A. C.N.P.J./M.F. N / N.I.R.E PUBLIC HELD CORPORATION WITH AUTHORIZED CAPITAL STOCK OPTION PLAN APPROVED BY THE EXTRAORDINARY SHAREHOLDERS' MEETING OF LOJAS RENNER S.A., HELD ON MAY 25, 2005, AS AMENDED BY THE EXTRAORDINARY SHAREHOLDERS' MEETING OF LOJAS RENNER S.A., HELD ON APRIL 10, 2007 AND THE EXTRAORDINARY SHAREHOLDERS' MEETING OF LOJAS RENNER S.A., HELD ON MARCH 30, PURPOSE OF THE PLAN The Stock Option Plan (the "Plan") aims to (a) attract, motivate and retain qualified executives, (b) promote the interests of Lojas Renner S.A. (the "Corporation") and its shareholders, and (c) stimulate the Managers, Executives, Employees and Services Renders (as defined in Item 3 below) to contribute in the achievement of the Corporation's goals, by means of grating options to acquire shares of the Corporation s capital stock. 2. MANAGEMENT OF THE PLAN BY THE COMPENSATION COMMITTEE Committee; Composition; Operation. The present Plan shall be managed by the Compensation Committee (the "Committee") established in compliance with the Corporation's Bylaws and composed of members of the Corporation's Board of Directors (the "Board"). Limitation. The members of this Committee are not entitled to the stock options object of this Plan. Powers. In the performance of its authority, the Committee shall be subject to the limits established by law, the Corporation's Bylaws, the applicable regulations, the Plan and the policies determined by the Corporation's shareholders during Shareholders' General Meetings. The Committee shall have extensive power to implement the Plan and to take all necessary and adequate actions to manage it. The decisions of the Committee do not commit the Corporation, except if and when they have been ratified by the Board of Directors. Any omissions shall be ruled by the Board of Directors, which may consult the Shareholders' General Meeting, if necessary. 3. PARTICIPANTS Participants. The participants of this Plan shall be selected at the exclusive discretion of the Committee among the Corporation and its controlled companies Managers, Executives, Employees and Services Renders. For the purpose of this Plan: (a) the term "Management" refers to the members of the Board of Directors and of the Board of Executive Officers of the Corporation and its controlled companies; and (b) the term "Executives" refers to those employees who hold managing positions or executives who are employees of the Corporation or of its controlled companies; (c) the term Employees refers to employees which occupy strategic functions in the Corporation s business and its controlled companies, as identified by the Committee; (d) the term Services renders refers to individual persons or companies which render services to the Corporation or of its controlled companies. Different Treatments. The Committee may treat differently the participants in similar situations, and it is not compelled, by any rule of equality or analogy, to extend to other participants, any condition, benefit or decision that it judges applicable to only certain participants. Also, the Committee may establish a special treatment to extraordinary cases, during the vesting period of each stock option, provided that the rights that have already been granted to the beneficiaries are not affected, nor the basic principles of the Plan. The referred extraordinary ruling will not constitute a precedent to be utilized by other beneficiaries. Maintenance in the Corporation or Job Position. None of the provisions established by the Plan shall grant rights to the beneficiaries that guarantee their maintenance as employees or service providers of

2 the Corporation or of any of its subsidiaries, nor it shall interfere in any way in the right of the Corporation or its subsidiaries, subject to the legal conditions and to those of their labor agreement or services agreement, as the case may be, to terminate, at any time, the relationship with the participant. In addition, none of the provisions of the Plan shall grant to any stock option holder rights regarding its maintenance until the end of its term as Officer or member of the Board of Directors, nor it shall interfere in any way in the Corporation's right to dismiss the participants, nor it shall guarantee any right of re-election for the position. Adhesion. Each participant must expressly adhere to the Plan by executing an adhesion instrument, without exceptions, committing itself to comply with all the provisions established in the Plan. 4. STOCK OPTION PROGRAMS Granting Programs. The granting of options to subscribe or acquire stocks to the Participants selected by the Remuneration Committee shall be performed periodically through stock option plans ( Granting Programs ). To each of the Granting Programs the Committee shall establish the characteristics as listed below. These characteristics can be subjected to the discretion of the Committee as long it is in accordance to this Plan s policies and rules. Characteristics of the Programs. The Committee shall establish for each of the Programs, respecting the general criteria under this Plan: (i) The total number of common shares issued by the Corporation traded in the stock markets that may be subscribed with the exercise of the stock options; (ii) The list of eligible participants as well as the number of options granted to each participant; (iii) The period for the stock option to become exercisable, which may be scheduled so that the option can be exercisable in relation to increasingly higher tranches of the common shares that are object of the option or other rules to the granting of the options; (iv) The subscription price; (v) The payment conditions of the shares; (vi) The maximum period to exercise the options or the criteria to determine it; (vii) Any restrictions to the trading of the subscribed shares due to the stock option exercise; and (viii) Occasional penalties. Interpretation of the Program. Any option granted in accordance with any Program is subject to all the terms and conditions established in this Plan. In case of any conflict between this Plan and the provisions of the Programs or of any other instrument or agreement executed as a result of the Plan, the provisions included in the Plan shall prevail. Conditions of the Stock Option. The terms and conditions of each option granted according to the Plan and Programs shall be established in the adhesion instrument to the Stock Option Plan executed by the participant. 5. EXERCISE OF STOCK OPTIONS Exercise of Stock Options. To exercise a stock option, the holder must have signed the Adhesion Instrument with the Corporation, as the case may be, or any other document that may be determined by the Committee, containing the number of subscribed common shares, the exercise price and the payment conditions approved by the Committee in accordance with the documents under which the stock option right has been granted.

3 Shareholders' Rights. No participant shall have any of the Corporation's shareholders' rights nor privileges until the options are duly exercised and the shares object of the options are subscribed. 6. SHARES INCLUDED IN THE PLAN Amount of Shares Included in the Plan. The shares options granted under the Plan, included the already granted or not, not counting the ones canceled by demission situations (see Items 11 and 12 below) may confer rights over the amount of shares that do not exceed nine percent (9%) of all shares issued by the Corporation at any time and expecting that the total number of stock issued or expected to be issued in the Plan s terms will always be inside the limit of the Corporation s authorized capital stock. Types of Shares Included in the Plan. The stock options granted according to the Plan shall give right over common shares traded in the stock market. Adjustments. In case the number of shares issued by the Corporation is increased, reduced, or there is a split or amalgamation or shares dividends, the Committee shall perform the appropriate adjustments in the amount of common shares that have been issued according to the options that have been exercised and the ones that have been granted but not exercised. The adjustments shall not change the total subscription price of the options granted but not exercised. No fraction of share shall be issued according to the Plan or any of these adjustments. 7. EXERCISE PERIOD Exercise period. The exercise period shall be established by the Committee on a case by case basis, observed the legal provisions, on the date the option is granted, and shall not exceed six (6) (six) years as the date the stock option is granted. 8. EXERCISE PRICE OF THE STOCK OPTION Exercise Price. The basic price for exercise of the option and payment of the subscription or acquisition of the shares by the beneficiaries of the Plan shall be determined by the Committee, in each Program, observed the legal provisions, on the date the option is granted, but never lower than 100% of the Stock Exchange Value of the shares on the date the option is granted. Stock Exchange Value. For the purposes of this Plan and each Program, the Stock Exchange Value of the shares subject to the exercise of the option shall be the weighted average trade prices in the stock exchange within thirty (30) calendar days prior to the date of the event that gave rise to such exercise. 9. PAYMENT OF THE EXERCISE PRICE Minimum Payment. The price of the shares shall be paid by the stock option holders under the conditions established by the Committee, observed the minimum payment established in Law N /76, in case the Committee authorizes the payment of the price of the shares in installments. Payment in Cash. The payment of the subscription price of the shares object of the options shall be in cash. Dividends. Except if otherwise deliberate by the Committee, the shares acquired as a result of a stock option exercise shall be entitled to cash dividends, including interest over the Corporation's capital, over the profits reported during the fiscal year of the subscription. 10. DELIVER OF THE SHARES; RESTRICTIONS TO THE TRANSFER Deliver of the Shares. No shares shall be delivered to the holder as a result of the exercise of the stock option, unless all the legal and regulatory requirements resulting from this Plan and the Programs have been fully satisfied.

4 Restrictions to the Transfer until Full Payment. The shares resulting from the stock option exercise shall not be sold to third parties before they have been fully paid. 11. TERMINATION Dismissal. For the purpose of this Plan, the term "Dismissal" refers to any act or fact that, either justified or not, terminates the judicial relationship between the option holder with the Corporation which entitled him or her to the stock option granting, except for retirement, permanent disability or death. The term Dismissal also includes cases of removal from office, replacement or non-re-election to management or termination of labor or service contracts. Dismissal by Corporation s Initiative. In the event of Dismissal of the participant by initiative of the Corporation or its controlled company, except for those dismissals due to justified reasons and for those dismissals by virtue of the events established in Clause 13 of this Plan, in which case the specific criteria established in such Clause 13 shall be observed, all options which have been granted but are not yet exercisable shall be automatically cancelled for all purposes of law, regardless of previous notice or indemnification. Nevertheless, the holder of the option shall exercise the options that are already exercisable on the date of the dismissal within the non-extendable term of ninety (90) days, counted as of the date of dismissal, upon payment on demand and payment of the outstanding amounts in case of parcelled payment. The Committee may extend such term whenever such measure is justifiable by the specific circumstances of the case. Dismissal due to the Participant's Initiative. In case of Dismissal by initiative of the Participant, for any reason, all the options granted to the participant but not exercisable shall become automatically extinct for all purposes of law, regardless of prior notice or indemnification. However, the stock option holder shall have the right to exercise the options already exercisable on the dismissal date, within the non-extendable term of thirty (30) days as of the dismissal date, upon payment in cash and payment of the balance in the case of parcelled payments. Dismissal due to Justified Reasons. In the case of Dismissal of the holder of the Corporation's options as a result of a dismissal due to justified reason, all the options granted to the participant but not yet exercisable shall become automatically extinct for all purposes of law, regardless of prior notice or indemnification. The term to exercise the exercisable options expires on the day prior to the Dismissal. In case the subscribed shares are not fully paid, the Participant shall have the number of shares proportionally reduced according to the amount duly paid-up. 12. DEATH; PERMANENT DISABILITY OR RETIREMENT OF THE PARTICIPANT Death. In the case of death of a stock option holder, all the options not yet exercisable shall become immediately exercisable, and the option will be extended to heirs and successors of the stock option holder, by legal succession or by legal will until the end of the term of the granted option, and the option may be exercised as a whole or in part by the heirs and/or successors of the stock option holder upon payment in cash. In case the subscribed shares have not been fully paid, the legal representative of the participant shall have the original exercise period (which will be automatically extended for 2 (two) years as of the date of death if the option was to expire on a earlier date) to complete the full payment of the subscribed shares or the amount of shares shall be proportionally reduced according to the effective paid amount. Permanent Disability or Retirement. In the case of permanent disability or retirement of a participant, all the options that are not yet exercisable shall become exercisable, and the payment of the exercise price shall be in cash. The options already exercisable may be exercised within the original period, provided that payment shall be in cash. If the subscribed shares have not been fully paid, the participant shall have the original exercise period (which will be automatically extended for two (2) years as of the date of the permanent disability or retirement if the option was to expire on a earlier date) to complete the full payment of the subscribed shares or the amount of shares shall be proportionally reduced according to the effective paid amount. 13. ACCELERATED EXERCISE OF THE OPTIONS

5 Mandatory Tender Offer. In case of occurrence of obligation to implement the mandatory tender offer of shares issued by the Corporation, in the terms of Sections 40, 41, 42 or 43 of the Corporation s Bylaws, or in case of successful mandatory tender offer for acquisition of Corporation s control formulated in accordance with Section 257 of Law N /76, one or the other which results in dismissal without justified reason of the Participant of the Plan by Corporation s initiative, it is hereby established that all options granted to the respective Participant, which are not yet exercisable, shall become automatically exercisable. Other Hypothesis. The accelerated exercise of the options granted under the terms of this Plan may be implemented in other hypothesis that are not contemplated by this Plan, in all cases subject to previous exam and opinion by the Committee which shall evaluate the respective hypothesis and, if that is the case, suggest its approval by the Board of Directors of the Corporation. 14. APPLICABLE REGULATION Applicable Regulation. This Plan, each Program, the options granted under them and the subscription of new shares derived from the options shall be in compliance with the applicable regulations of the Securities Commission (CVM). Each participant shall commit itself, in the adhesion instrument, to comply with the CVM regulations, in particular CVM Ruling No. 358/02, and the Trading Policy for Securities Issued by the Corporation, if any. Preemptive Right of Shareholders. According to the Plan, the shareholders, as provided in Section 171, Paragraph 3º of Law No /76 and its amendments, shall not hold any preemptive right to acquire or exercise options. 15. VALIDITY AND TERMINATION OF THE PLAN Validity. The Plan shall be effective upon its approval by the Extraordinary Shareholders Meeting and it shall terminate, at any time, (a) by decision of the Extraordinary Shareholders Meeting, (b) by delisting of the Corporation as a public held Corporation, (c) by ceasing of the trading of the common shares in the over-the-counter market, organized marker or stock market, by virtue of a corporate reorganization of the Corporation, (d) by termination and liquidation of the Corporation, or (e) by the lapse of the term of ten (10) years as of the date of approval of this Plan. Termination by the Initiative of Shareholders. The termination of the Plan by decision of the Corporation's shareholders shall not affect the efficacy of the options that are still in effect, that have been previously granted, nor the existing restrictions to the trade of the shares and/or to the preemptive right herein established. Termination by Corporate Reorganization (Corporate reorganization of the Corporation refers to incorporations, mergers, spin-offs or Corporations reorganizations in which the Corporation is not the surviving company). In case of the Corporation's Corporate Reorganization, the Plan and the Programs shall be extinct, as well as any option granted, except if the decisions in connection with the reorganization establish in writing, in relation to this transaction, the continuity of the Plan and/or of any Program, and the assumptions of the options already granted with these options being replaced by new ones. In this case, the succeeding company or its affiliated company or its controlled company shall assume the appropriate adjustments in amount, type and price of the shares, and in this case the Plan and the relevant Program shall continue as established before. Termination by Delisting, Ceasing of Trading, Dissolution or Liquidation. In the case of delisting of the Corporation as a public held corporation, ceasing of trading, dissolution or liquidation of the Corporation, the Plan and the stock options granted under the Plan shall be automatically extinct.