Document:

Exhibit 10.4

Exhibit C

PROMISSORY
NOTE

	
  Payee: Star Brazil Cayman Ltd.

  	
   

  	
          ,
  2006

  
	
  Principal Amount: US$18,800,000

  	
   

  	
   

  

For value received, the undersigned, Star Capital Funding, Inc., a Delaware corporation (the “Payor”),
hereby promises to pay to the order of Star Brazil Cayman Ltd., a corporation
organized under the laws of the Cayman Islands (the “Payee”), the
principal amount set forth above, payable in accordance with the following
schedule:

(a)           US$6,266,666, six (6) months from the
date hereof;

(b)           US$6,266,666, twelve (12) months from
the date hereof; and

(c)           US$6,266,667, eighteen (18) months
from the date hereof.

provided, however,
that the Payor shall, without premium or penalty, prepay the outstanding
principal amount in whole or in part at the request(s) of the Payee or Apolo
Mecanica e Estruturas S.A. for earlier payment(s) in accordance with Section
2.2 of the Contribution Agreement among Apolo Tubos e Equipamentos S.A., Lone
Star Brazil 2 Ltda., Apolo Mecanica e Estruturas S.A., GPC Participacoes S.A.,
Cirrus Participacoes Ltda. and Payor (the “Contribution Agreement”), by
making a Demand (as such term is defined in the Contribution Agreement) of
Payor.

All
payments under this Promissory Note shall be made by Payor in lawful currency
of the United States of America, in immediately available funds, without
deduction or withholding for or on account of any present or future taxes,
levies, impost, duties, charges or withholdings of any natures, now or
hereafter imposed by any Governmental Authority (as such term is defined in the
Contribution Agreement).

This Promissory Note shall bear no interest.

All agreements between the Payor and the Payee,
whether now existing or hereafter arising and whether written or oral, are hereby
limited so that in no contingency or event whatsoever, whether by reason of
demand or acceleration of the maturity hereof or otherwise, shall the amount
contracted for, charged, received, paid or agreed to be paid to the Payee for
the use, forbearance or detention of the funds evidenced hereby or otherwise,
or for the performance or payment of any covenant or obligation contained in
any instrument securing the payment hereof, if any, exceed the maximum amount
permissible under applicable law.  If,
from any circumstance whatsoever, interest would otherwise be payable to the
Payee in excess of the maximum lawful amount, the interest payable to the Payee
shall be reduced to the maximum amount permitted under applicable law; and if
from any circumstance the Payee shall ever receive anything of value deemed
interest by applicable law in excess of the maximum lawful amount, an amount
equal to any excessive interest shall be applied to the reduction of the
principal hereof and not to the payment of interest, or if such excessive
interest exceeds the unpaid balance of principal hereof, such excess shall be
refunded to the Payor.  All interest paid

or agreed to be paid to the Payee shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the
full period of the loan evidenced hereby until payment in full of the principal
(including the period of any renewal or extension hereof) so that the interest
hereon for such full period shall not exceed the maximum amount permitted by
applicable law.  This paragraph shall
control all agreements between the Payor and the Payee.

Demand,
diligence, presentment, protest and notice of non-payment and protest are
hereby waived by the Payor.

For
the convenience of the parties hereto, this Promissory Note may be executed in
any number of counterparts, each such counterpart being deemed to be an
original instrument, and all such counterparts shall together constitute the
same note.

This Promissory Note is registered as to both
principal and any interest with the Payor and transfer of the obligation may be
effected only through a book entry system maintained by the Payor.  For clarification, the Promissory Note shall
be considered transferable through a book entry system to the extent an ownership
interest in the Promissory Note is required to be reflected in a book
entry.  A book entry is a record of
ownership that identifies the owner of an interest in the obligation.

This
Promissory Note shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Texas.

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IN
WITNESS WHEREOF, the Payor has caused this Promissory Note to be executed and
delivered by its duly authorized officer as of the day and year and at the
place set forth above.

	
   

  	
  STAR CAPITAL FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 SIGNATURE PAGE TO PROMISSORY NOTEExhibit 10.5

Exhibit D

SALE, MARKETING & SUPPLY AGREEMENT

SALE, MARKETING &
SUPPLY AGREEMENT (the
“Agreement”), dated as of [                ],
2006, by and between Lone Star Steel Company, L.P., a Delaware limited
partnership organized under the laws of the State of Delaware in the United
States of America (“LSS”), and Apolo Mecânica e Estruturas S.A., a corporation (sociedade anônima/ stock
corporation), organized under the laws of the Federative
Republic of Brazil, with head offices in
the city of Lorena, State of São Paulo, at Av. Dr. Léo de Affonseca Netto, 750,
CEP 12600-000, duly enrolled with the CNPJ under No. 42.419.150/0001-84, herein represented
by its undersigned legal representatives, duly authorized as they solely
declare (the “Company”).

RECITALS:

WHEREAS, it
is a condition to the equity investment of Lone Star Brazil Holdings 2, Ltda., a
limited liability company (sociedade empresária
limitada) organized under the laws of
the Federative Republic of Brazil, with head offices at City of São Paulo, State of São Paulo, at Rua
Funchal, 263, 10o andar, sala 17-I, CEP 04551-060, duly enrolled with
the CNPJ under No. 08.278.633/0001-78 (“LSB 2”) in the Company that this
Agreement be entered into between LSS and the Company, to set forth the
terms and conditions pursuant to which the Company will process and sell
Tubular Products (as defined below) to LSS and LSS, as the exclusive marketer,
will purchase and resell such Tubular Products; and

WHEREAS, LSS intends to provide distribution
services, customer product acceptance, sales and marketing support,
technical/thermal treating expertise and other services in order to increase
the sales of Tubular Products in North America and in other markets in which
the Company markets its Tubular Products, as agreed to between the parties.

NOW, THEREFORE, in consideration of the mutual covenants
and agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which are acknowledged, the
parties hereto agree as follows:

1.             Defined
Terms.  The following
terms as used in this Agreement shall have the meaning ascribed to them below:

“Affiliate”
of a specified person (the “Specified Person”) means any Person
(a) who, directly or indirectly, controls, is controlled by, or is under
common control with the Specified Person, (b) who, directly or indirectly, owns
or controls fifty percent (50%) or more of the Specified Person’s outstanding
voting securities or equity interests, (c) of whom the Specified Person,
directly or indirectly, owns or controls fifty percent (50%) or more of the
outstanding voting securities or equity interests or (d) who has the right,
directly or indirectly, to appoint or elect fifty percent (50%) or more of the
Specified Person’s board of directors or equivalent managing body.

“Agreement”
has the meaning set
forth in the introductory paragraph hereof.

 

“Business Day”
means a day on which banks are open for general banking business in both São
Paulo, São Paulo State, Brazil and Dallas, Texas, the United States of America
(excluding Saturdays, Sundays and public holidays).

“Company” has the meaning set forth in the
introductory paragraph hereof.

“Contract”
has the meaning set forth in Section 6 hereof.

“Coupling”
means a tubular section used for the exclusive purpose of joining two threaded
pin ends of pipe or equipment having the same external and internal diameters
and same thread.

“Coupling
Materials” means seamless pipes from which tubular sections are prepared
for the manufacture of Couplings or Cross-Overs.

“Cross-Over”
means a tubular section used for the exclusive purpose of joining two threaded
pin ends of pipe having different dimensions or threads.

“Dispute”
has the meaning set forth in Section 27 hereof.

“Force Majeure”
has the meaning set forth in Section 18 hereof.

“Governmental
Authority” means any authority, regulatory or administrative agency,
commission, department, board, bureau, agency, instrumentality or court of
Brazil, the United States of America, or any other nation or sovereign state,
any federal, bilateral, or multilateral governmental authority, any state,
possession, territory, county, district, city, or other governmental unit or
subdivision, and any branch, agency, or judicial body of any of the foregoing.

“ICC Rules”
has the meaning set forth in Section 27 hereof.

“Law” means any statute, law, treaty,
ordinance, rule, regulation, instrument, directive, decree, permit, agreement,
Order or injunction of or with any Governmental Authority, and includes,
without limitation, rules or regulations of any regulatory or self-regulatory
authority compliance with which is required by law.

“Line Pipe” means finished or unfinished line pipe processed and
supplied by the Company.

“LSB 2” has the meaning set forth in the recitals hereof.

“LSS” has the meaning set forth in the introductory paragraph
hereof.

“North America” means the United States of America, Canada, and
Mexico (which includes any offshore drilling within the territorial waters of
such countries).

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“Oil Country Tubular Goods” or “OCTG” means casing,
tubing, drill pipe, semi-finished and unfinished green tubes, Coupling
Materials and finished Couplings processed and supplied by the Company.

“Order” means any
writ, judgment, decree, injunction or similar order of any Governmental Authority.

“Person”
means any individual, partnership, limited liability company, corporation,
cooperative, joint venture, trust, estate or other entity.

“Specialty Tubing” means mechanical and pressure tubes, cold
drawn and hot finished tubes, shells for redraw and other boiler tubes
processed and supplied by the Company.

“Term” has the meaning set forth in Section 9 hereof.

“Tubular Products” means Oil Country Tubular Goods, Specialty
Tubing, and/or Line Pipe; for greater clarity, such term shall not include galvanized
unfinished line or other pipe.

“US Dollars” or “US$” means legal currency in the United
States of America.

2.             Exclusive Marketing.  During the Term of this Agreement, the
Company hereby grants LSS the exclusive right, without limitation or exclusion,
to market and sell Tubular Products (a) to any party located in North America,
(b) for any Tubular Product purchases initiated in North America without regard
to the end-use location, except South America, and (c) from time to time, as
mutually agreed by the parties in advance and in writing, to customers located
outside North America and intending to use the Tubular Products outside North
America.  LSS shall have no obligation to purchase
Tubular Products from the Company in any particular amounts.

3.             Duties of
LSS.  During the Term of
this Agreement, LSS shall:

(a)           provide distribution services, customer product
acceptance, sales and marketing support, technical/thermal treating expertise
and other services in order to increase the sales of Tubular Products in North
America and in other markets, as agreed to from time to time by LSS and the
Company;

(b)           pay all expenses and costs incurred by it in connection
with the marketing and sales of Tubular Products in North America pursuant to Section
2 hereof; and

(c)           provide periodic reports of sales of Tubular Products in
North America as may be requested from time to time by the Company.

4.             Method of Sales.  LSS will purchase all the products according
to the following method:  Duty paid on a DDP
(Houston, Texas Port, or such other location as designated by

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LSS) basis according to INCO 2000 terms (duty paid, end of ships
tackle, title passes at dock in Houston, Texas, or such other location as
designated by LSS, or, if no such location is designated, then when the Tubular
Products are delivered to LSS), or as mutually agreed by the parties in each
Contract.

5.            Price and Payment.  Prices shall be negotiated on an inquiry-by-inquiry
basis mutually agreed to by LSS and the Company; provided, however, that the price
shall be the lowest price and on the most favorable terms offered by the
Company to any other purchaser from the Company in an export transaction or an
internal transaction in Brazil where purchaser intends to export the Tubular
Products.  The prices and quantities for
the required sizes shall be discussed and agreed upon between LSS and the Company
at least sixty (60) days prior to the date of the actual Contract (as defined
below) delivery date.  The Company shall
work with its suppliers to offer competitive prices.  All of the Contracts will be submitted by LSS,
or any other company that LSS so designates, to the Company.  The Company, or a wholly-owned subsidiary of
the Company, including but not limited to Apolo America Pipe and Tube Corp.,
will be the importer of record for all products purchased by LSS under this
Agreement.  All prices and payments under
this Agreement shall be in U.S. Dollars, unless otherwise agreed to in writing
by LSS and the Company.  Payment terms
are net thirty (30) days from the invoice date in immediately available funds.

6.             Contract.  The terms of a purchase order when completed
and signed by the parties for each order (the “Contract”), will, along
with the terms of this Agreement, control with respect to that order.

7.             Processing
Standards.  The Company
shall process and ship Tubular Products in a good and workmanlike manner, in
accordance with industry standards and any additional or further standards set
forth in the Contract.  LSS shall have
the right to inspect (either itself or by means of an agent) all Tubular
Products delivered to LSS or its assignee, and may reject, by notice to the
Company within sixty (60) days after delivery and based on a substantiated
report to be delivered together with such notice, any portion of a shipment of
Tubular Products not meeting the standards set forth herein and in the
applicable Contract.  LSS also shall have
the right to inspect (either itself or by means of an agent), any Tubular
Products prior to loading at the point of origin.  LSS’s (or its agent’s) inspection shall follow
all internal rules when at the Company’s premises.  Notwithstanding
any provision to the contrary contained in this Section 7, in the
event that the Company does not agree with any rejection by LSS of any portion
of a shipment of Tubular Products as not meeting the standards set forth herein
and in the applicable Contract, the Company has the right, at its own cost, to
solicit an independent inspection by an independent surveyor mutually agreed to
by the Company and LSS.  The opinion of
such independent surveyor with respect to whether such rejection by LSS was
justified in accordance with the standards articulated in this Section 7
shall be final and binding on both parties.

8.             Prompt Delivery.  The
Company agrees to have each shipment of Tubular Products ready for shipment no
later than ninety (90) days after the date of acceptance of LSS’s Contract,
except in case of Force Majeure.  If any
shipment has not arrived at the location designated in the Contract on or
before the sixtieth (60th) day after the acknowledged shipment date on
each Contract, LSS has the right to renegotiate the purchase price for that Contract.  If

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no agreement is reached on
the renegotiation of the price, the Contract involved shall be terminated with
no costs to either party and the Company shall have the right to sell the
Tubular Products of the terminated Contract in North America.  For sales of Tubular Products
inside North America, the Company grants to LSS the right of first refusal in
relation to any purchase offer the Company may have for such Tubular Products
of the terminated Contract in which the offered price is 80% or lower than the
last price offered by the Company in the renegotiation round of the terminated
Contract.

9.             Term.  The term of this Agreement (the “Term”)
will be ten (10) years commencing on the date of this Agreement and ending on
the tenth (10th) anniversary
of the date of this Agreement; provided, however, that LSS and the Company
hereby agree to use their best efforts to extend the Term of this Agreement for
an additional ten (10) years (and subsequent ten (10) year periods) at least
six (6) months prior to the expiration of the initial (or a subsequent) ten (10)
year period.

10.           Termination.  This Agreement may be terminated prior to its expiration as provided in Section 9
above by sixty (60) days advance written notice as follows:

(a)           By either party, effective immediately, in the event the
other party should fail to perform in any material respect any of its
obligations hereunder and should fail to remedy such nonperformance within
ninety (90) days after receiving written demand therefor;

(b)           By either party, effective immediately, if the other party
should be declared insolvent or bankrupt or makes an assignment or other
arrangement for the benefit of its creditors, or if such other party should be
nationalized or have any of its material assets expropriated by any government
or political subdivision thereof; or

(c)           By the Company, effective immediately, in the event that LSS
or any Affiliate thereof is no longer a shareholder of the Company.

11.           Effect of Termination or
Non-renewal.

(a)           Any termination or
non-renewal of this Agreement shall not affect (i) the obligations of the
Company and LSS under each outstanding Contract; (ii) the obligation of
the Company to process, ship and deliver to LSS all Tubular Products sold by
the Company prior to the date of termination, and (iii) the obligation of LSS
to pay the outstanding price of any Contract. 
For purposes of this Agreement, Tubular Products will be deemed to be
sold whenever a Contract for those Tubular Products has been accepted by the
Company.

(b)           Upon termination or
non-renewal of this Agreement, LSS shall (i) immediately cease soliciting orders
for the Tubular Products and (ii) immediately discontinue use of all trade
names and trademarks of the Company that may theretofore have been authorized to
use by the Company, including any word, title or expression resembling any such
trade name or trademark.

(c)           Upon termination or
non-renewal of this Agreement, the Company shall immediately discontinue use of
all trade names and trademarks of LSS that the Company may

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theretofore
have been authorized to use by LSS, including any word, title or expression
resembling such trade name or trademark.

(d)           Except for a willful
breach of this Agreement by a party, gross negligence by a party, or in
accordance with this Section 11, Section 12, Section 26 or
Section 27, neither party shall have any liability to the other following
termination or non-renewal of this Agreement for compensation, reimbursement or
damages therefor, or for any loss of goodwill or prospective profits, or for
any investment, expenditures or commitments made or entered into by any of the
parties in connection with this Agreement.

12.           Product Quality and Claims.  The Company represents and warrants to LSS
that all Tubular Products will conform to the written specifications as agreed
upon first through the inquiry process, and then second as listed in the
relevant Contract.  Any Tubular Product
that does not meet these specifications may be rejected by LSS.  In the event that an issue should arise as to
the product quality (whether through a customer-initiated complaint or
otherwise), LSS shall promptly advise the Company and shall be responsible for
investigating it, interfacing with the customer as well as the Company, but the
Company shall be solely responsible for any defective Tubular Products and any damages
caused thereby, provided that the Company’s responsibility for such damages
shall be limited to the replacement of the defective Tubular Products without
charge unless additional damages are payable to the end user under applicable
law, in which case the Company shall be responsible for such additional damages.  In connection with the handling of such
product quality issues, (a) LSS shall discuss with the Company any
proposed settlement offer with a customer prior to extending such offer to the
customer; (b) the Company will use its best efforts to conform to LSS’s
customary time framework for handling of product quality issues; and (c) the
Company will not be responsible for any settlement effected by LSS without the Company’s
prior written consent, which shall not be unreasonably withheld or delayed.

13.           Entire Agreement; Amendment.  This Agreement constitutes the entire agreement
between LSS and the Company with respect to the subject matter hereof.  This Agreement may not be amended except by
an instrument in writing executed by both LSS and the Company.

14.           Applicable Law.  This Agreement will be governed by, and
construed in accordance with, the laws of the State of Texas.

15.           Notice Provision.  Any notice or other communication
provided for in this Agreement shall be in writing in the Portuguese and
English languages and shall be deemed to have been duly given if
(a) delivered personally, (b) sent by commercial courier services or
overnight mail or delivery or (c) sent by facsimile with confirmation by
personal delivery or overnight mail, as follows:

If to the Company, to:

Apolo Mecânica e Estruturas S.A.

Attention: 
President

Av. Dr. Leo de Affonseca Neto, 750 Mondesire

12600-970 – Lorena/SP

Telefax: (55 12) 3153-2290

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with a copy to:

Apolo Tubos e Equipamentos S.A.

Av. Chrisóstomo Pimentel de Oliveira, no 2.651,
Pavuna

CEP 21650-000 Rio de Janeiro, RJ

Brasil

Telefax: 21 – 3452 9139

with a copy to:

Luciano de Souza Leão Jr.

Bulhões Pedreira, Bulhões Carvalho, Piva, Rosman e
Souza Leão Advogados

Rua da Assembléia 10, 38o andar

CEP 20011-901 Rio de Janeiro, RJ

Brasil

telefax: 21 – 2531 2665

If to LSS, to:

Lone
Star Steel Company, L.P.

15660
N. Dallas Pkwy., Suite 500

Dallas,
TX 75248

United
States of America

Telefax:  972-770-6474

Attn:  Steve Fowler

Attn:  General
Counsel

with a copy to:

Mary R. Korby

Weil, Gotshal & Manges LLP

200 Crescent Court, Suite 300

Dallas, Texas 
75201

Telefax: 
214-746-7777

with a copy to:

Marcos Flesch

Souza, Cescon Avedissian, Barrieu e Flesch – Advogados

Rua Funchal, 263 11o andar

04551-060 São Paulo, SP

Telefax: (55 11) 3089 6565

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or to such other person, address or telefax number as
any party may specify by notice in writing to the other.  All such notices shall be deemed to have been
received (i) if by personal delivery on the day after such delivery, (ii) if
by courier services or overnight mail or delivery, on the day delivered, and
(iii) if by facsimile, on the next day following the day on which such
facsimile was sent, provided that it is followed immediately by confirmation by
personal delivery or overnight mail that is received pursuant to subclause (i)
or (ii), provided that if the date of receipt is not a Business Day at the
place of the principal office of the party receiving the notice, or if the
receipt is after 5:00 p.m. on a Business Day, the notice or other communication
shall be deemed given, received, and effective on the next Business Day at the
place of the principal office of the addressee.

16.           Clerical
Errors.  Stenographic and clerical errors,
whether in mathematical computation or otherwise, made by LSS on a Contract or
any other forms delivered to the Company shall be subject to correction.  If the Company finds any clerical errors on
such documents, it shall inform LSS promptly thereof.

17.           Successors and Permitted
Assigns.  This Agreement
will be binding upon, and will inure to the benefit of, LSS and the Company and
their respective successors and assigns; provided, however, neither LSS nor the
Company may assign this Agreement without the prior written consent to the
assignment by the other party hereto except that LSS may serve as the Company’s
exclusive sales agent either directly or through a wholly-owned subsidiary,
provided that LSS remains fully liable to the Company under this Agreement.

18.           Force
Majeure.  If LSS or the Company is prevented from or
delayed in complying, either totally or in part, with any of the terms or
provisions of this Agreement by reason of a “Force Majeure,” which as
used herein shall mean (a) fire, flood or storm that inflicts material damage
to the Company’s facilities, or (b) other causes beyond the reasonable control
of LSS or the Company or, if
applicable, of third-party providers of materials to either LSS or the Company including but not limited to any act
of God, governmental action, natural disaster, strike, or failure of essential
equipment that, in the case of either
(a) or (b), cause the Company’s facilities to become inoperable, or LSS to be
unable to perform, then upon notice to the other party, the affected provisions
of this Agreement and any outstanding Contract shall be suspended during the
period of such disability and such party shall have no liability in connection
therewith.  The Company, or LSS, as
applicable, will use its best efforts to remedy any disability caused by a
Force Majeure event.  In the event of a
Force Majeure event, the party not suffering a Force Majeure has the right, but
not the obligation, to terminate this Agreement and all outstanding Contracts
if the other party cannot remedy such disability caused by such Force Majeure event
within one-hundred and twenty (120) days of such event.

19.           Remedies.  In the event of the Company’s breach of this
Agreement, LSS may take any or all of the following actions, without prejudice
to any other rights or remedies available to LSS under this Agreement or by
law: (a) require the Company to repair or replace such defective or
non-conforming Tubular Products, and upon the Company’s failure or refusal

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to do so, repair or replace the same at the Company’s
expense, (b) subject to Section 7 hereof, reject any shipment or
delivery containing defective or non-conforming Tubular Products and return
such shipment or delivery for credit or replacement at LSS’s option, said
return to be made at the Company’s cost and risk, or (c) cancel any outstanding
deliveries hereunder, and treat such breach by the Company as the Company’s
repudiation of the Contract(s) relating to such deliveries.  In the event of LSS’s breach hereunder, the
Company shall have the right of recovery of the Tubular Products or the purchase
price payable for Tubular Products purchased prior to such breach in addition
to any other rights or remedies available to the Company under this Agreement
or by law.

20.           Product Liability
Insurance.  Throughout the
Term of this Agreement and for a period of two (2) years thereafter, the
Company will maintain in effect product liability insurance through an
internationally recognized insurance company acceptable to LSS (a) covering
Tubular Products; (b) providing for not less than US$3,000,000 in coverage per
incident with respect to all Tubular Products having a deductible not greater
than US$100,000; (c) naming LSS as an additional insured; and (d) containing a
policy endorsement providing that such policy cannot be cancelled or modified
in any material respect without 30 days prior written notice to LSS.  The Company will provide LSS with a
certificate of insurance as soon as reasonably practicable after the date
hereof.  The Company shall hold any
insurance proceeds in trust for the benefit of LSS until any claims related to
an incident are fully and finally settled and shall pay such proceeds over to LSS.

21.           Indemnity.

(a)           LSS
agrees to indemnify and hold the Company, its officers, directors, employees,
attorneys, agents, successors and assigns harmless against all losses, damages
or expenses of whatever form or nature, including attorneys fees and other
costs of legal defense, whether direct or indirect, that they, or any of them,
may sustain or incur as a result of any acts or omissions of LSS or any of its
directors, officers, employees, attorneys or agents arising from this Agreement,
including but not limited to (i) breach of any of the provisions of this
Agreement or (ii) violation by LSS (or any of its directors, officers,
employees, attorneys or agents) in any material respect of any applicable law,
regulation or order of North America relating to the services performed by LSS
hereunder that results in material harm to the Company.

(b)           The
Company agrees to indemnify and hold the LSS, its officers, directors,
employees, attorneys, agents, successors and assigns harmless against all
losses, damages or expenses of whatever form or nature, including attorneys
fees and other costs of legal defense, whether direct or indirect, that they,
or any of them, may sustain or incur as a result of any acts or omissions of
the Company or any of its directors, officers, employees, attorneys or agents arising
from this Agreement, including but not limited to (i) breach of any of the provisions
of this Agreement or (ii) violation by the Company (or any of its
directors, officers, employees, attorneys or agents) in any material respect of
any applicable law, regulation or order of North America or Brazil relating to
the services performed by LSS hereunder that results in material harm to LSS.

22.           Confidentiality
Obligations.  Each party
shall use its best efforts to prevent any of the other party’s proprietary and
confidential information that it receives under the scope of

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this Agreement from being (a) used for any purpose
other than the fulfillment of the receiving party’s obligations under this
Agreement or (b) disclosed to any third party (other than the receiving party’s
counsel, auditors, lenders or other advisors), in each case without the prior
written consent of the other party.  The
provisions of this Section 22 shall not apply and the receiving party
shall have no obligation with respect to any information that the receiving
party can show:  (i) is or becomes
public knowledge through no wrongful act of the receiving party; (ii) is
already known to the receiving party, which knowledge can be documented from
written records; (iii) is rightfully obtained by the receiving party from
any third party without similar restriction and without breach of any obligation
owed to the disclosing party; or (iv) is independently developed by the
receiving party’s employees who have not had access to the applicable
confidential information.  In addition, a
receiving party may disclose confidential information of the other party if it
becomes compelled to do so by applicable law, regulation or legal process;
provided, however, that before doing so it gives the other party reasonable
notice of its intended disclosure sufficient for the other party to seek a
protective order.

23.           No Third Party
Beneficiaries.  Except as
expressly set forth in Section 21 hereof, nothing in this Agreement
shall be construed to create any rights in any third party against either LSS
or the Company.

24.           No Waiver.  The performance of or compliance with a party’s
obligations hereunder may be waived, but only in writing signed by an
authorized representative of the other party. 
A waiver of compliance with any provision of this Agreement shall not
constitute a waiver of any subsequent lack of compliance with such provision or
of any other provision of this Agreement. 
Failure of either party to enforce at any time any provision of this
Agreement shall not be construed as a waiver thereof.

25.           Invoices; Right of Set-Off.  The Company shall render
one (1) copy of each Contract submitted under this Agreement and shall send all
documents to the Accounts Payable Department of LSS.  Subject to the Brazilian foreign
exchange regulation as in effect from time to time, the Company hereby
acknowledges that LSS has the rights of set-off, netting, offset, recoupment,
and similar rights with respect to any payments to be made by LSS to the
Company or any Affiliate of the Company pursuant to any order for Tubular
Products or otherwise; provided that LSS shall provide the Company with prior
notice of its exercise of such rights.

26.           Environmental.  The Company warrants that it will, and
shall cause all of its Affiliates, officers, directors, managers, independent
contractors, and employees, to perform all services and furnish all Tubular
Products with due care and in compliance with all applicable federal, state,
regional, and local safety and environmental laws, rules, and regulations,
including, without limitation, laws, rules, and regulations pertaining to
notification, permitting, waste management and unauthorized releases.  The Company further agrees to indemnify,
defend and hold LSS harmless from any and all claims, demands, judgments,
causes of action, damages, penalties, fines, costs (including attorney’s fees,
costs and expenses), liabilities or losses, including, but not limited to,
personal injury or death and property damage, which arise as a result of
activities or asserted activities related to performance of this Agreement or
any breach of any provision of this Agreement. 
This indemnity shall survive completion or termination of this
Agreement.

 10
 

 

27.           Arbitration
and Attorney Fees.  The
parties shall make every effort to settle amicably any and all disputes,
controversies and conflicts arising out of or relating to or in connection with
this Agreement, the performance or non-performance of the obligations set forth
herein (including any questions regarding its existence, validity or
termination) (a “Dispute”). 
Except as provided in this Section 27, Disputes or claims, if any, which
cannot be settled amicably between the parties, within thirty (30) days after
written notice of such Dispute has been given by one party to the other party,
shall be referred to and finally resolved by arbitration in Sao Paulo, Brazil under
the Rules of Arbitration of the International Chamber of Commerce (“ICC
Rules”) for the time being in force. 
The ICC Rules shall be deemed to be incorporated by reference into this Section 27.  Each of Tubos and LSS shall appoint one (1)
arbitrator and the arbitrators appointed by Tubos and LSS shall appoint the
third (3rd)
arbitrator.  The costs of the
arbitration, including administrative and arbitrator’s fees, shall be shared
equally by the parties.  Each party shall
bear the costs of its own attorney’s fees and expert witness fees.  The arbitration proceedings shall be in
English and Portuguese and all pleadings and written evidence shall be in
English and Portuguese.  The parties
agree that the arbitration shall be kept confidential and that the existence of
the proceeding and any element of it (including but not limited to any
pleadings, briefs or other documents submitted or exchanged, any testimony or
other oral submissions, and any awards) shall not be disclosed beyond the
tribunal, the ICC, the parties, their counsel and any person necessary to the
conduct of the proceeding, except as may be lawfully required in judicial
proceedings relating to the arbitration or otherwise, or as required by
applicable Law.  The decision of the
tribunal shall be final, binding and enforceable upon the parties and judgment
upon any award rendered by the tribunal may be entered in any court having
jurisdiction thereof.  In the event that
the failure of a party to this Agreement to comply with the decision of the tribunal
requires the other party to apply to any court for enforcement of such award,
the non-complying party shall be liable to the other for all costs of such
litigation including attorneys’ fees. 
The parties may apply to any court of competent jurisdiction in
accordance with this Section 27 for temporary or permanent injunctive or
preliminary relief, without breach of this Section 27 or abridgement of
the powers of the tribunal.  For the
purposes of obtaining temporary or permanent injunctive or preliminary relief
and without abridgement of the powers of the tribunal, the parties elect the
courts of the City of Sao Paulo, State of Sao Paulo, with the express waiver of
any other courts, no matter how privileged they may be.  Except for applications regarding preliminary
or injunctive relief, neither party shall be entitled to commence or maintain
any action in any court of law upon any matter in dispute until such matter
shall have been submitted to, and finally determined under, the dispute
resolution and arbitration procedures in this Section 27.  Process may be served on either party in the
manner set forth in this Agreement or by such other method authorized by
applicable Law or court rule.

28.           Relationship of Parties.     Nothing in this Agreement shall create, or
be deemed to create, a partnership, joint venture or legal relationship of any
kind between the parties that would impose liability upon one party for the
acts or failure to act of the other party, or authorize either party to act as
agent for the other.  LSS shall be deemed
an independent contractor to the Company with respect to all matters relating
to this Agreement.  Save where expressly
stated in this Agreement, neither party shall have the authority to make
representations, act in the name or on behalf of or otherwise bind the other.

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29.           Execution.             This Agreement may be executed in
any number of counterparts and by the parties on separate counterparts, each of
which, when executed, shall be an original, but all counterparts shall together
constitute one and the same instrument.

30.           Further Assurance.            The Company shall, at the request of
LSS, do or procure the doing of all such further acts, and execute or procure
the execution of all such documents, as may from time to time be necessary to
give full effect to this Agreement.

31.           Language.             This Agreement is written in
English.  Any translation prepared in any
other language (including Portuguese) is for information purposes only, and
only the English version shall be deemed to be the original.  In the event of any inconsistency between the
different language versions, the English language version shall prevail.

[THE REMAINDER OF
THIS PAGE IS INTENTIONALLY LEFT BLANK]

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IT WITNESS WHEREOF, the parties
hereto have entered into this Agreement as of the date first written above.

 

 

	
  LONE STAR STEEL COMPANY, L.P.

  
	
   

  
	
  By:    Lone Star Steel Company General, LLC, its
  general partner

  
	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  APOLO MECÂNICA E ESTRUTURAS S.A.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  
	
   

  
	
  Witnesses:

  
	
   

  
	
  1.

  	
   

  	
   

  
	
  Name:

  
	
  ID#:

  
	
   

  
	
   

  
	
  2.

  	
   

  	
   

  
	
  Name:

  
	
  ID#:

  
													

 

 SIGNATURE PAGE TO
 SALE, MARKETING & SUPPLY AGREEMENT

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