Document:

EX-4.02

EXHIBIT 4.02

SHARES PURCHASE AND SALE AGREEMENT AND OTHER COVENANTS

entered into by and between

PERDIGÃO S.A.

SHAN BAN CHUN,

NATALI SHI WAI SHAN,

LEONARDO SHI LUNG SHAN,

WARREN SHI HOW SHAN,

and

ELEVA ALIMENTOS S.A.

Dated as of October 30, 2007

SHARES PURCHASE AND SALE AGREEMENT AND OTHER COVENANTS

This private instrument is entered into by and between the following parties, on the one side,-

(a) PERDIGÃO S.A., an open company, headquartered in the City of São Paulo, State of São Paulo, at
Av. Escola Politécnica, 760, enrolled with the Corporate Taxpayer’s Registry (CNPJ) under No.
01.838.723/0001-27, by means of its undersigned legal representatives (hereinafter referred to as
“Purchaser”); and, on the other side;-

(b) SHAN BAN CHUN, Brazilian naturalized citizen, divorced, industrial, resident and domiciled in
the city of Porto Alegre, State of Rio Grande do Sul, at Avenida das Indústrias No. 720, bearer of
the Identity Card (RG) No. 8003461178 SSP/RS and enrolled with the Individual Taxpayer’s Registry
(CPF) under No. 001.518.660-15;-

(c) NATALI SHI WAI SHAN, Brazilian citizen, divorced, psychologist, resident and domiciled in the
city of Porto Alegre, State of Rio Grande do Sul, at Avenida das Indústrias No. 720, bearer of the
Identity Card (RG) No. 1033649961 SSP/RS and enrolled with the Individual Taxpayer’s Registry (CPF)
under No. 882.314.530-91;-

(d) LEONARDO SHI LUNG SHAN, Brazilian citizen, single, business administrator, resident and
domiciled in the city of Porto Alegre, State of Rio Grande do Sul, at Avenida das Indústrias No.
720, bearer of the Identity Card (RG) No. 5013604681 SSP/RS and enrolled with the Individual
Taxpayer’s Registry (CPF) under No. 882.314.610-00;-

(e) WARREN SHI HOW SHAN, Brazilian citizen, single, business administrator, resident and domiciled
in the city of Porto Alegre, State of Rio Grande do Sul, at Avenida das Indústrias No. 720, bearer
of the Identity Card (RG) No. 1014964439 SSP/RS and enrolled with the Individual Taxpayer’s
Registry (CPF) under No. 553.913.540-72 (the parties (b) through (e) being jointly hereinafter
referred to as “Sellers”); and further, as intervening consenting party;-

(f) ELEVA ALIMENTOS S.A., an open company, headquartered in the city of Porto Alegre, State of Rio
Grande do Sul, at Avenida das Indústrias No. 720, enrolled with the Corporate Taxpayer’s Registry
(CNPJ) under No. 92.776.665/0001-00, by means of its undersigned legal representatives (hereinafter
referred to as “Company”);

WHEREAS

WHEREAS-

(a) Company is dedicated to the exploitation of the Activities (as defined as follows), with its
share capital represented by sixty four million eight hundred twenty nine thousand

 

 

six hundred
eight (64.829.608) ordinary, nominative, registered shares without face value, totally subscribed
and paid-in;-

(b) Sellers, jointly, hold fifty million one hundred twenty four thousand one hundred forty three
(50.124.143) shares, representing approximately seventy seven point thirty two per cent (77.32%) of
the share capital of the Company;-

(c) the other shares of the Company are negotiated at the stock exchange;-

(d) Purchaser wishes to acquire from Sellers and Sellers wish to sell to Purchaser 45.98%of the
shares held by Sellers in Company’s share capital; and-

(e) Purchaser and the Company undertake to call a shareholders extraordinary general meeting with
the purpose to decide upon the Incorporation of Shares (as defined below) by means of which Sellers
shall receive shares issued by Purchaser and Purchaser shall receive shares issued by the Company,
pursuant to what is set forth herein.

THE PARTIES DECIDE to enter into this Purchase and Sale Agreement (as defined below), under the
following clauses and conditions:-

CLAUSE I

DEFINITIONS

1.1 Definitions. The following capitalized terms shall have the meanings assigned to them
below:-

“Share” or “Shares” means each or all, as the case may be, issued and outstanding
shares of the Company.

“Affiliated” means, with respect to any Person, any other Person that, direct or
indirectly, Controls the Person in question, be Controlled by it or under the common Control with
it, the adjective thereof being interpreted accordingly.

“Activities” means the conduction, commercial exploitation or administration (as well as
the ownership, direct or indirectly, of corporate interests in companies with as object the
conduction, commercial exploitation or administration) of business, in Brazil, related to each of
the activities set forth in the corporate object of the Company, under the terms of the Bylaws set
forth in Attachment A hereto.

“Audit” means the legal, technical, accounting, fiscal, operational, financial audit of the
applicable Party.

“Governmental Authority” means any bodies, departments, agencies or other authorities
exercising executive, legislative, judicial, regulatory or administrative functions of governmental
nature at the Federal, State and Municipal spheres in Brazil and, if applicable or relevant, in any
other country with jurisdiction over the Company or over any of its assets or operations.

“Governmental Permit” means any consent, approval, authorization, waiver, permit, grant,
concession, agreement, license, certificate, exemption, order, decree, judicial decision,
injunction, registry, statement, enrollment, report or notice issued by any Governmental Authority.

“Brazil” means the Federative Republic of Brazil.

“CADE” has the meaning attributed to it in Clause 9.10.

“Mediation and Arbitration Chamber” has the meaning attributed to it in Clause 9.9.1.

“Company” has the meaning set forth in the Caput of this Purchase and Sale Agreement,
including its respective Subsidiaries.

“Purchaser” has the meaning set forth in the Caput of this Purchase and Sale Agreement,
including its respective Subsidiaries.

 

 

“Agreement” means any and all agreement, covenant, instrument, deed, commitment or
covenant, written or oral, as the same may be amended or changed from time to time.

“Purchase and Sale Agreement” means this Shares Purchase and Sale Agreement and other
Covenants, all its Attachments, including eventual changes, modifications or amendments that may be
entered into from time to time.

“Relevant Agreements of the Company” has the meaning attributed to it in Clause 4.22(A).

“Relevant Agreements of Purchaser” has the meaning attributed to it in Clause 4.21(B).

“Control” (as well as the similar terms “Control”, “Controller”,
“Controlled” or “under common Control”) means, with respect to any Person (i) the
owner, direct or indirectly, of the majority (50% more one) of the voting shares, or (ii) the power
to elect the majority of the administrators (executive board or board of directors), to direct the
corporate activities or orient the functioning of the bodies of the Company, direct or indirectly,
of fact, under the law or by means of an agreement or any other covenant.

“Ordinary Course of Business” For the purposes of this Purchase and Sale Agreement, an
action shall be considered as carried out within the Ordinary Course of Business when such action
is consistent with past practices executed of the respective company, is executed in the ordinary
course of the daily operations and its execution do not require the approval by the board of
directors of such company or the qualified majority of its partners, as the case may be. For all
purposes of this Purchase and Sale Agreement it shall not be considered out of the Ordinary Course
of Business of the Purchaser and the Company: the Primary Public Offer, the tag-Along Public Offer,
the Incorporation of Shares and all other actions related to each of such events.

“SEC” means the Securities and Exchange Commission or the succeeding body.

“Date of the Final Closure of the Operation” has the meaning attributed to it in Clause
2.2.2.

“Date of the First Closure” has the meaning attributed to it in Clause 2.2.1.

“Third Party Demand” has the meaning attributed to it in Clause 7.7.

“Financial Statements of the Company” has the meaning attributed to it in Clause 4.12(A).

“Financial Statements of Purchaser” has the meaning attributed to it in Clause 4.12(B).

“Business Day” means any civil day, except Saturdays, Sundays or other days in which
commercial banks in the City of São Paulo, State of São Paulo, and in the City of Porto Alegre,
State of Rio Grande do Sul, are required or authorized to close according to the Law.

“Documents of the Operation” means this Purchase and Sale Agreement, the certificates set
forth in the Purchase and Sale Agreement and each of its Attachments.

“Relevant Adverse Effect” means any act, fact, event, omission, effect or others that give
rise, with respect to the applicable Person, to any cost, expense, disbursement, liability,
contingency, demand, provision, impact, reduction (of value, equity, revenue or other), default or
others in individual or aggregated value in a series of similar events, equal or higher than five
million reais (R$ 5,000,000.00).

“Indemnifiable Event” has the meaning attributed to it in Clause 7.6.

“Final Closure of the Operation” has the meaning attributed to it in Clause 2.2.2.

“Bank Guarantee” has the meaning attributed to it in Clause 3.3.

“GAAP” means the accounting principles generally accepted in Brazil, applied consistently
with the practices previously adopted.

 

 

“Encumbrance” means any mortgage, pledge, third party rights, demands, guarantee rights,
burden, charges, statutory lien with or without reserve of domain, lease, sublease, licensing,
usufruct, easement, agreement, condition, disseisin, vote exercise agreement, participation right,
option, offer preemptive right, negotiation or acquisition or other constrictions or restrictions
of any nature, what included, without limitation, Encumbrances constituted as a result of a
contractual disposal. For the purposes of this Purchase and Sale Agreement, it shall not be
considered as an Encumbrance over the shares the pledge constituted by the Sellers on behalf of
Purchaser under the terms of Clause 6.3 below.

“Incorporation of Shares” means the process of incorporation of shares issues by the
Company to be conducted and concluded under the terms of article 252 and other provisions
applicable of Law 6.404/76, by means of which the Sellers and the other shareholders of the Company
shall receive shares issued by the Company, observed what is set forth herein.

“IPCA” means the Amplified Consumer Price Index assessed and published by the Brazilian
Institute of Geography and Statistics, in Brazil.

“Law 6.404/76” means the Law No. 6.404/76, as of December 15, 1976, as amended from time to
time.

“Law” means all applicable provisions set forth in all (i) constitutions, treaties, legal
rules, laws, codes, rules, regulations, administrative rules or resolutions from any Governmental
Authorities; (ii) Governmental Permits; and (iii) warrants, provisional measures or injunctions,
decisions, sentences and decrees issued by (or resultant from agreements executed with ) any
Governmental Authorities; which are related to constitutional, civil, commercial, labor, fiscal,
environmental, real estate, sanitary matters, among others.

“Notice of Indemnifiable Event” has the meaning attributed to it in Clause 7.6.1.

“Primary Public Offer” means the primary distribution public offer of shares issued by the
Purchaser which, cannot, in any event, exceed the limit of forty million (40.000.000) shares to be
issued by the Purchaser, to be carried out under the terms of the SEC Instruction No. 400, as of
December 29, 2003, as amended from time to time.

“Tag-Along Public Offer” means the public offer for the acquisition of the shares held by
the minority shareholders of the Company under the terms of article 254-A of Law 6.404/76 and the
SEC Instruction No. 361, as of March 05, 2002, as amended from time to time.

“Party” means an integral part to this Purchase and Sale Agreement at any time.

“Indemnifiable Party” or “Indemnifiable Parties” has the meaning attributed to it
in Clause 7.2.

“Indemnifiable Liabilities” or “Indemnifiable Liability” has the meaning attributed
to it in Clause 7.2.

“Person” means any natural person or legal entity, company by shares or limited liability
companies, association, joint stock company, companies without legal personality, governmental or
regulatory bodies and its departments, investment funds and clubs, managed portfolios, pension
funds, entities administrators of third party rights, condominiums, or any other person.

“Price” has the meaning attributed to it in Clause 3.1(a).

“First Closure” has the meaning attributed to it in Clause 2.2.1.

“Real”, “Reais” and “R$” means the currency of the Federative Republic of
Brazil.

“Subsidiaries” means any legal entity in which the Company holds interest, direct or
indirect, equal or higher than fifty per cent (50%) of the total or voting share capital or that

 

 

otherwise has its results consolidated in the Financial Statements of the Company (severally, a
“Subsidiary” and, jointly, the “Subsidiaries”).

“Tax” means any and all tributes, taxes, charges, contributions and compulsory payments,
including those over or related to the revenue, property, sale, use, license, manufacturing,
production, services provision, financial operations, payroll, social security, FGTS [Government
Severance Indemnity Fund for Employees], whether withheld at source or not, as well as any other
tributes, taxes, charges or similar contributions, including CPMF [Provisional Contribution on
Financial Activities] (or any other contribution or Tax that may replace it), in addition to any
interests, additions of monetary correction or penalties related therewith, and any other interests
over such additions or penalties.

“Securities” means, with respect to any Person, ordinary shares, preferable shares and any
other titles and securities issued by it, regardless of the name adopted or the existence or not of
right to vote, including the securities convertible in shares or exchangeable by it,
options, subscription bonus, preemptive rights or of any other nature for the acquisition,
subscription or receipt of corporate interests issued by such Person, or, further, any other titles
and securities which yield is determined, in whole or in part, based on the result, invoicing or
other financial performance index of such Person.

“Sellers” has the meaning set forth in the Caput of this Purchase and Sale Agreement.

1.2. Generic Nature of the Expressions. All references herein to Clauses, Parts and
Attachments shall be considered referenced to the clauses, parts and attachments to this Purchase
and Sale Agreement, except if set forth otherwise therein. The expressions “inclusive”, “including”
or “includes” and similar words introduce a non-mandatory enumeration. The definitions presented to
the expressions in this instrument shall apply equally to the singular and to the plural.

1.3. Headings. The headings of the clauses herein are for reference only, being irrelevant
to the interpretation or analysis of the tenor of this Purchase and Sale Agreement.

1.4. Severability. All provisions hereof shall be interpreted so that it is valid and in
full force under the terms of the applicable law. In the event any provision herein is declared
invalid, null, subject to annulment or unenforceable to the exact extent of its prohibition or
unenforceability, without affecting the other terms of such provision or from other provisions set
forth herein.

CLAUSE II

DISPOSAL AND TRANSFER OF SHARES; RELATED OPERATIONS

2.1. Purchase and Sale of Shares. Observed the terms and conditions of this Purchase and
Sale Agreement, including the compliance (or waiver, by the applicable Party) of the conditions
precedent set forth in Clauses 5.1 and 5.2 below, the Sellers, herein and hereby, irrevocably and
unchangeably, undertake to sell and transfer to Purchaser, upon the payment of the Price, under the
terms of Clause 3.2 below, and Purchaser undertakes to acquire from Sellers, irrevocably and
unchangeably, on the Date of the First Closure, pursuant to what is set forth in Clause 2.3 below,
a total of twenty three million one hundred seventy thousand one hundred fifty six (23.170.156)
Shares issued by the Company, representative of 35.74% of the total share capital issued and
outstanding of the company, free and clear from any Encumbrances, being:

	(a)	 	18.430.969 Shares transferred by Shan Ban Chun;-
	 
	(b)	 	1.636.078 Shares transferred by Natali Shi Wan Shan;-
	 
	(c)	 	1.554.166 Shares transferred by Leonardo Shi Lung Shan; and-
	 
	(d)	 	1.548.943 Shares transferred by Warren Shi How Shan.

 

 

2.2 Closure. The First Closure and the Final Closure of the Operation shall take place,
subject to the compliance with the conditions precedent set forth in Clauses 5.1 and 5.2 below (or
its waiver by the applicable Party) and with the terms and conditions hereof, in two stages, as set
forth in this Clause II, at the law firm Machado, Meyer, Sendacz e Opice Advogados, located at Av.
Brig. Faria Lima, 3.144, 11o andar, in the City of São Paulo, State of São Paulo (or in any other
place or date determined by the Parties).

2.2.1. The Closure of the purchase and sale of shares contracted in this instrument (“First
Closure”) shall take place up to December 30, 2007 or three (03) Business Days after the
settlement of the Primary Public Offer (considering, as such, the date of settlement of the base
offer or, if the case may be, the date of settlement of the shares of the complementary lot),
whichever is first, provided that all conditions precedent set forth in Clauses 5.1 and 5.2 below
have been fully complied with or validly waived by the applicable Party (“Date of the First
Closure”).

2.2.1.1. In the event the First Closure does not take place up to December 30, 2007, under the
terms of Clause 2.2.1 above, the Party complying with its obligations under the terms hereof shall
be exclusively entitled to (i)(a) if the Sellers, require the obligation of Bank Guarantee for the
payment of the Price and transfer the Shares to Purchaser, so that this Purchase and Sale Agreement
remains valid and in force in respect to the Parties, or, (b) if Purchaser, required the transfer
of the Shares, pursuant to the deposit of the Price, so that this Purchase and Sale Agreement
remains valid and in force in respect to the Parties; or (ii) rescind this Purchase and Sale
Agreement and terminate the operations considered herein, under the terms of Clause 6.1(b) below,
being owed to the Party complying with its obligations under the terms hereof, a termination an
non-compensatory fine, under the terms of Clause 6.2.3 below.

2.2.2. The second closure set forth in this instrument (“Final Closure of the Operation”)
shall take place, observed the schedule set forth in Attachment 2.2.2, primarily, up to
February 29, 2008, on the date in which is concluded the Incorporation of Shares as set forth in
Clause 2.4(a), provided that all conditions precedent set forth in Clauses 5.1 and 5.2 below have
been fully complied with or validly waived by the applicable Party (“Date of the Final Closure
of the Operation”). The Parties undertake to call the meetings of Purchaser and the Company
needed to implement the Incorporation of Shares, immediately after the conclusion of the Tag-Along
Offer.

2.3. Acts and Procedure of the First Closure. Observed the terms and conditions of this
Purchase and Sale Agreement, the Parties shall perform the following acts on the Date of the First
Closure:-

(a) Sellers shall transfer the Shares to Purchaser, pursuant to what is set forth in Clause 2.1
above, pursuant to the execution of the shares transfer deed before the registering institution of
the Company evidencing the transfer by Sellers of such Shares on behalf of Purchaser.

(b) Purchaser shall pay Sellers the Price, by means of wire transfer of immediately available funds
(TED) in the amount and to the account(s) of Sellers informed to Purchaser in writing up to
December 15, 2007; and-

(c) the other Documents of the Operation needed to formalize the First Closure shall be executed by
the respective signatories.

2.3.1. Obligations to Deliver Documents by the Company and Sellers in the First Closure.
Observed the terms and conditions hereof, the Company and the Sellers shall deliver to Purchaser,
on the Date of the First Closure, the following documents:-

 

 

(a) Shares transfer deed under the terms of Clause 2.3(a) above, duly executed by the Sellers;-

(b) an original copy of the extraordinary general meeting of the Company approving the
Incorporation of Shares, subject to the implementation and conclusion of the Tag-Along Public
Offer;-

(c) a certificate duly executed by the Sellers attesting that all obligations of Sellers set forth
in Clause VIII were fully complied with; and

(d) evidence that the Company and the Sellers are authorized to sign the other Documents of the
Operation from which they are signatories.

2.3.2. Obligations to Deliver Documents by the Purchaser in the First Closure. Observed the
terms and conditions hereof, Purchaser shall deliver to Sellers, on the Date of the First Closure,
the following documents:-

(a) evidence of payment of the Price to Sellers;-

(b) an original copy of the extraordinary general meeting of Purchaser approving, in a first or
second call, the Incorporation of Shares, subject to the implementation and conclusion of the
Tag-Along Public Offer;-

(c) a certificate duly executed by the legal representatives of Purchaser attesting that all
obligations of the Purchaser set forth in Clause VIII were fully complied with; and

(d) evidence that the Purchaser is authorized to sign the other Documents of the Operation from
which it is a signatory.

2.3.3. Events on the First Closure. All acts and events indicated in Clauses 2.3, 2.3.1 and
2.3.2 above shall be considered as being carried out simultaneously, being certain that no act
shall be considered effectively carried out up to all stages of the First Closure have been
concluded, under the form and tenor reasonably satisfactory to Purchaser and Sellers, as well as
their respective attorneys.

2.4. Acts and Procedure of the Final Closure of the Operation. Observed the terms and
conditions of this Purchase and Sale Agreement, the Parties shall perform the following acts on the
Date of the Final Closure of the Operation:-

(a) Purchaser and the Company shall conclude the process of Incorporation of Shares pursuant to the
performance of a general meeting of Purchaser with the purpose of approving, in a first or second
call, the definite value of the capital increase in view of the number of chaser of the Company
remaining after the settlement of the Tag-Along Public Offer and the subscription of the shares of
Purchaser by the administrators of the Company on behalf of the Sellers and other shareholders of
the Company;-

(b) Purchaser shall deliver to Sellers evidence of the issuance of the shares of Purchaser
described in Clause 2.4(a) on behalf of the Sellers and other shareholders of the Company, free and
clear from any Encumbrances, pursuant to the receipt of extract issued by the registering
institution of Purchaser evidencing the credit of such shares on behalf of the Sellers and the
other shareholders of the Company; and-

(c) the other Documents of the Operation needed shall be executed by the respective signatories.

2.4.1. Observed what is set forth in Clause 2.4.2 below, on the Date of the Final Closure of the
Operation, Purchaser shall issue and register on the name of the Sellers and the other shareholders
of the Company, a total of twenty million (20.000.000) shares issued by Purchaser, from which
fifteen million four hundred seventy three thousand three hundred forty nine (15.463.349) shares
shall be issued and registered on behalf of the Sellers in the following proportion:-

 

 

	(i)	 	12.300.500 shares of Purchaser on behalf of Mr. Shan Ban Chun;-
	 
	(ii)	 	1.091.889 shares of Purchaser on behalf of Mr. Natali Shi Wan Shan;-
	 
	(iii)	 	1.037.223 shares of Purchaser on behalf of Mr. Leonardo Shi Lung Shan; and-
	 
	(iv)	 	1.033.737 shares of Purchaser on behalf of Mr. Warren Shi How Shan.

2.4.2. Notwithstanding, the total number of shares set forth in Clause 2.4.1 above may vary, for
more or less, in function of the result of the Tag-Along Public Offer.

2.4.3. Events on the Final Closure of the Operation. All acts and events indicated in
Clause 2.4 above shall be considered as being performed simultaneously, being certain that no act
shall be considered effectively carried out up to all stages of the Final Closure of the Operation
have been concluded, under a form and tenor reasonably satisfactory to Purchaser and Sellers, as
well as their respective attorneys.

2.5. Tag-Along Public Offer. Immediately after the execution of this Purchase and Sale
Agreement (however in any event within the legal term for such) Purchaser shall provide for the
registry before SEC of the Tag-Along Public Offer and under the terms of the
minute of shares public offer notice set forth in Attachment 2.5 hereto. In this sense, the
Parties, herein and hereby, acknowledge and agree, irrevocably and unchangeably, that (i) it shall
be ensured to the minority shareholders of the Company equivalent treatment to the shareholders of
the Sellers, under the same terms and conditions set forth in this Purchase and Sale Agreement,
being certain that, in compliance with the SEC Regulations, the list of exchange of the
Incorporation of Shares shall be considered for the purposes of price to be offered at the
Tag-Along Public Offer, and (ii) the Tag-Along Public Offer shall be carried out as soon as the
register before SEC is obtained.

2.6. Primary Public Offer. Immediately after the execution of this Purchase and Sale
Agreement, Purchaser shall provide the registry of the Primary Public Offer before SEC.

2.7. Incorporation of Shares. Immediately after the execution of this Purchase and Sale
Agreement, once observed, by the Parties, the requirements set forth in Law 6.404/76 and in the SEC
Instruction No. 319/99 for the incorporation of shares, (i) Purchaser shall call an extraordinary
general meeting to be carried out as soon as possible, however always observing the legal terms
applicable to the call, and (ii) Sellers shall cause the Company to call an extraordinary general
meeting to be held as soon as possible, however always observing the legal terms applicable to the
call, for the approval by the shareholders of Purchaser and by the shareholders of the Company,
respectively, the Incorporation of Shares, subject to the implementation and conclusion of the
Tag-Along Public Offer.

2.7.1. Observed the terms and conditions of this Purchase and Sale Agreement, the Sellers equally
undertake, irrevocably and unchangeably, to take the steps set forth herein so that the Company
considers and approves the incorporation of the other shares issued by the Company, pursuant to the
procedure of Incorporation of Shares set forth in this Purchase and Sale Agreement, in such a way
that Purchaser becomes the holder of all Shares issued by the Company, observed, equally, the terms
and conditions of this Purchase and Sale Agreement. Purchaser, on its turn, undertakes, irrevocably
and unchangeably, to take the steps set forth herein so that its shareholders consider and approve
the Incorporation of Shares under the terms of this Purchase and Sale Agreement so that all Sellers
receive one (1) share issued by the Purchaser to each 1.74308855 shares of the Company held by the
Sellers, consequently Sellers shall receive fifteen million four hundred sixty three thousand three
hundred forty nine (15.463.349) shares issued by Purchaser with a face value of forty five reais
(R$ 45.00) each share of Purchaser, after the conclusion of the Incorporation of Shares.

 

 

CLAUSE III

PRICE AND PAYMENT OF THE SHARES

3.1. Price. In compensation to the sale of twenty three million one hundred seventy
thousand one hundred fifty six (23.170.156) Shares representing 35.74% of the total share capital
of the Company, Purchaser shall pay the value of R$ 25.8162443 per share, amounting to five hundred
ninety eight million one hundred sixty six thousand four hundred thirteen reais (R$
598,166,413.00), to be paid by Purchaser to the Sellers, in cash (“Price”).

3.2. Payment. The Price shall be paid by Purchaser to the Sellers, proportionally to the
number of shares that each one of the Sellers transfer on the Date of the First Closure to the
Purchaser, as set forth in Clause 2.2 above. The payment of the Price is not subject to the
performance of the Primary Public Offer.

3.3. Bank Guarantee. As a guarantee of the payment by Purchaser to the Sellers of the
Price, under the terms of Clause 3.2 above, regardless of the financial settlement of the Primary
Public Offer, Purchaser shall constitute on behalf of the Sellers a bank guarantee, with a prime
bank, in the amount of five hundred ninety eight million one hundred sixty six thousand four
hundred thirteen reais (R$ 598,166,413.00), within ten (10) Business Days as of the date of
execution of this Purchase and Sale Agreement (“Bank Guarantee”).

3.3.1. Notwithstanding what is set forth in Clause 3.3 above, the Bank Guarantee shall also
guarantee the payment by Purchaser to Sellers of the termination and non-compensatory fine set
forth in Clause 6.2.3 below.

3.3.2. The Bank Guarantee shall be immediately demandable by Sellers (i) in the amount of five
hundred ninety eight million one hundred sixty six thousand four hundred thirteen reais (R$
598,166,413.00), for the payment of the Price, in the event of the non-occurrence of the First
Closure up to December 30, 2007, under the terms of Clause 2.2.1 above; or (ii) in the amount of
one hundred sixty million reais (R$ 160,000,000.00) for the payment of the termination and
non-compensatory fine set forth in Clause 6.2.3 below to the Sellers, in the event of failure to
pay the fine by the Purchaser, in the events in which it is owed, within ten (10) Business Days as
of the date of receipt by Purchaser of the notice of rescission forwarded by the Sellers.

3.3.3. The Bank Guarantee shall be valid and maintained by Purchaser on behalf of the Sellers up to
the date (i) of payment of the Price by Purchaser; or (ii) payment of the Bank Guarantee on behalf
of the Sellers, under the terms of Clause 3.3.2 above, whichever is first.

3.3.4. The costs and expenses for the constitution and maintenance of the Bank Guarantee shall be
born 50% by Purchaser and 50% by the Sellers.

CLAUSE IV

REPRESENTATIONS AND WARRANTS FROM PURCHASER AND SELLERS

(A) Sellers, hereby, represents and warrants to Purchaser, with respect to the Sellers and the
Company, what follows, and such representations and warrants are valid, true, complete and correct
on this date and on the Date of the First Closure.

4.1. Powers and Authorization. Sellers and the legal representatives of the Company have
the power and authority required to execute and comply with this Purchase and Sale Agreement and
the other Documents of the Operation from which they are parties.

4.2. Valid and Binding Obligation. The Documents of the Operation constitute a valid and
binding obligation in face of the Sellers and the Company, enforceable pursuant to its respective
terms. The execution and the compliance with the Documents of the Operation

 

 

are not subject to any
previous authorization, approval or consents of any nature resultant from any clause or provision
of any contract or Agreement from which it is a party or under the Law, process or judicial order
or any other reason, which had not been obtained (except for the approvals related to the Tag-Along
Public Offer and to the Incorporation of Shares, and for the approval by CADE).

4.3. Breach. The execution and compliance with the Documents of the Operation do not breach
any provision of Law or any Agreement from which the Sellers and the Company may be a party, nor
will result (i) in the early termination of any obligation set forth in or in the termination of
any of such Agreements, or (ii) in any encumbrance of any nature over any of its assets or goods
(including, without limitation, over the Shares), except for what is set forth in Attachment
4.3(A).

4.4. Organization, Good Standing and Ownership. The Company is an open company, duly
organized, validly existent and in good standing according to the laws of the Federative Republic
of Brazil. Sellers are the owners and legal holders of fifty million one hundred twenty four
thousand one hundred forty three (50.124.143) Shares issued by the Company, representing
approximately seventy seven point thirty two per cent (77.32%) of the total share capital of the
Company, free and clear from any and all Encumbrances. The Company does not hold interest, direct
or indirectly, in the share capital of any other company, in Brazil or abroad, or holds any
investment or participation in any other Person, as partner, shareholder or quotaholder, and has no
Subsidiary, Affiliated or other company related to the Company, except fro what is set forth in
Attachment 4.4(A).

4.5. Share Capital. The share capital of the Company is of four hundred forty one million
four hundred thousand reais (R$ 441,400,000.00), divided into sixty four million eight hundred
twenty nine thousand six hundred eight (64.829.608) ordinary, nominative, registered shares without
face value, totally subscribed and paid-in. The Company does not have any other Security
convertible or exchangeable into shares, issued or outstanding, as well as any subscription, option
or other obligation of any kind (whether materialized or not in Securities) which bind the Company
to issue shares of its capital or any other Securities convertible into shares or subject to
acquisition of right to vote in the Company.

4.6. Shareholders’ Agreement. There is no shareholders’ agreement (or other similar
agreement restricting or governing, among other things, the right to vote or the right to dispose
of the shares of the Company), that binds, direct or indirectly, the shares of the Company, or
restricts the exercise of the right to vote with respect to such Shares, regardless of being filed
at the headquarters of the Company.

4.7. Litigation. Except for what is set forth in Attachment 4.7(A), there is no
lawsuit, administrative procedure, arbitral court, inquiry or any other kind of investigation
pending or threatened against the Company of civil, commercial, bankruptcy, corporate, real estate,
environmental or other nature that, severally or in the aggregate of a series of actions on the
same theme, which value involved is superior to one million reais (R$ 1,000,000.00).

4.8. Business with Related Parties. Except for what is set forth in Attachment
4.8(A), there is no Agreement, contract or covenant currently in force by and between, on the
one side, the Company and, on the other side, any of the Sellers, their spouses, first degree or up
to third degree relatives, Affiliated, or companies Controlled, direct or indirectly, by any of
such Persons.

4.9. Business Assets. Except for what is set forth in Attachment 4.9(A), the
Company is the legal owner of all assets, goods and rights required or desirable to the conduction
of its business, and such assets, goods and rights are free and clear from any Encumbrances and

 

 

are
being kept in good state of preservation, functioning and operation, natural tear and wear
excepted, being adequate to the purposes to which they are intended. The Company holds the
ownership and the right to use all assets leased with respect to the operation of its business
under the terms of valid and enforceable lease agreements.

4.10. Insurances. As set forth in Attachment 4.10(A), the Company has insurance
policies which provide coverage to ensure the Company and its assets against the usual risks of its
activities. All relevant terms, obligations and provisions of each of such policies are being
observed, all premiums owed were paid and no notice of cancellation with respect to such policies
was received by the Company.

4.11. Conduction of the Business. As of the date of the Financial Statements of the
Company, it developed and conducted its activities strictly in the Ordinary Course of Business and
regularly and at no time (i) suffered any relevant change in its financial, legal, economic or
commercial status; (ii) undertook to assume, or assumed any liability for any obligation, except
those incurred in the Ordinary Course of Business; (iii) increased or undertook to increase
significantly the level of compensation or benefits, whether related or not to salaries, attributed
to any of its administrators, officers or employees, except for what is set forth in Attachment
4.11(A)(a), (iv) sold, transferred or undertook to sell or transfer any of its assets or goods,
except in the Ordinary Course of Business and except for what is set forth in Attachment
4.11(A)(b); or (v) had any of its assets used in its activities destroyed or substantially
damaged; except in the Ordinary Course of Business.

4.12. Financial Statements. The Financial Statements of the Company, attached hereto as
Attachment 4.12(A) (“Financial Statements of the Company”) (i) are complete,
correct and true in all aspects, (ii) were based on the books and records of the Company and
prepared in accordance to the GAAP, applied consistently, and (iii) the balance statement included
in the Financial Statements of the Company reflects correctly the financial situation of the
Company in the applicable period.

4.13. Books and Records. The accounting and fiscal books and other financial and commercial
records of the Company are complete and correct in all aspects, were and are kept in compliance
with the applicable Laws and with the proper commercial, accounting, fiscal and corporate
practices, including with respect to the maintenance of a system of intern controls, and reflect
properly all business, expenses, revenues, assets and liabilities of the Company.

4.14. Absence of Liability not Disclosed. Except for (i) the disclosures set forth in the
Financial Statements of the Company, and (ii) liabilities and obligations contracted and incurred
by the Company, after the date of the respective Financial Statements of the Company, in the
Ordinary Course of Business and listed in Attachment 4.14(A), the Company has no liability
or obligations, of whatever nature, accrued or not, contingent or of any other nature. The reserves
set forth in the Financial Statements of the Company are proper and were calculated consistently
with the past practices and current operations of the Company, except for what is set forth in
Attachment 4.7(A).

4.15. Compliance with Laws. The Company complied and complies, timely and in all aspects,
with all Laws from any Governmental Authority or arbitral court affecting the business, goods or
assets of the Company, except for eventual noncompliance that, severally or in the aggregate, do
not generate a Relevant Adverse Effect to the Company. No notice, charge, plead, action or claim
was received by the Company or was registered, filed or, to the knowledge of the Sellers, is
imminent against the Company pleading a

 

 

breach to such Laws that may give rise to a Relevant
Adverse Effect to the Company and not disclosed to Purchaser.

4.16. No Credits. Sellers represent that they received all rights and credits that could be
claimed against the Company, resultant from the condition of partners or administrators of the
Company, except for the credits set forth in Attachment 4.8(A).

4.17. Licenses, etc. Except for what is set forth in Attachment 4.17(A) or by
eventual licenses which absence do not give rise to a Relevant Adverse Effect to the Company, it
holds the Governmental Permits necessary, required or desirable to conduct and develop its
Activities as such Activities are currently carried out.

4.18. Labor Matters.

(a) Except for what is set forth in Attachment 4.18(A)(a), the Company is not a party to
any labor complaint (of individual or class nature) which value involved is superior to one million
reais (R$ 1,000,000.00) and there is no labor complaint pending or threatened.

(b) Except for what is set forth in Attachment 4.18(A)(b), there is no plan, benefit,
incentive or other special conditions (including health insurance, life insurance, pension plan and
financings) to the administrators, officers or employees of the Company.

(c) Attachment 4.18(A)(c) lists all administrators, officers and employees of the Company.

(d) Attachment 4.18(A)(c) lists all third parties providing services to the Company and the
Company takes all measures necessary, required or desirable to hinder the constitution of labor
relationship between them and such service providers.

(e) Except for what is set forth in Attachment 4.31(A) and Attachment 4.11(A)(a),
and except if in the Ordinary Course of Business by the Company, the execution of this Purchase and
Sale Agreement and the conclusion of the operations set forth herein shall not
give rise to an additional payment or increase of compensation to any employee, administrator or
officer of the Company.

(f) There are no strikes, slowdowns or stoppages or pickets in course, or, to the knowledge of the
Company and the Sellers, threatened against the Company.

(g) Company’s employees are duly registered according to the demands of the labor and pension laws
and the records of the Company are in compliance with such Laws, except for what is set forth in
Attachment 4.18(A)(g). The salaries, amounts, charges, benefits, contributions,
compensations related to the labor in extraordinary hours, including the collections owed with
respect to the Government Severance Indemnity Fund for Employees and the National Institute of
Social Security to the (or with respect to the) administrators, managers, employees and associates
under the terms of the agreements (including labor agreements or collective conventions) and the
labor and pension Laws and orders were and are being regularly and timely paid or collected.

4.19. Fiscal Matters. All Tax returns of the Company were delivered to the proper public
authorities on the due dates. All Taxes owed by the Company, included or not in such statements,
were paid on the due dates, except if the payment of such Tax is being legally questioned by the
Company. Attachment 4.19(A) lists all lawsuits, processes or administrative proceedings,
inspections or fiscal inspections or inspections related to Taxes involving the Company which value
involved is superior to one million reais (R$ 1,000,000.00).

4.20. Consumer. Company complies with the Laws related to consumer’s rights. Company is not
a party to any lawsuit, administrative proceeding, arbitral court, inquiry or

 

 

other kind of
investigation in course or threatened against the Company related to such matter which value
involved is superior to one million reais (R$ 1,000,000.00).

4.21. Obligations/Guarantees. Except for what is set forth in Attachment 4.21(A),
the Company did not provided or received on its behalf any guarantee, real or personal, with
respect to any obligation.

4.22. Agreements. Attachment 4.22(A) lists all Agreements from which the Company is
a party which value involved is superior to five million reais (R$ 5,000,000.00) (severally or in
the aggregate in a series of similar Agreements), or that are relevant to the conduction of the
Activities as the same are currently conducted (“Relevant Agreements of the Company”). Each
of the Relevant Agreements of the Company is in full force, is valid and enforceable against the
Company and the other party to such Agreement, being certain that the operations set forth in this
Purchase and Sale Agreement shall not give to right, to the other party to such Agreement, to the
termination or indemnity. The Company complied with all relevant provisions of each of the Relevant
Agreements of the Company.

4.23. Intellectual Property. The Company is the holder of all rights to use or use licenses
regarding the Intellectual Property used in its Activities and listed in Attachment
4.23(A)(a). The Intellectual Property held or used by the Company is free and clear from any
Encumbrances and is duly registered before the proper bodies and no service or
procedures used by the Company breaches any Intellectual Property or any other right related
therewith and there is no complaint resultant from a breach, misuse or misappropriation of any
Intellectual Property. There is no restriction on the disclosure, use or transfer of such
Intellectual Property (except for the standard provisions restricting the transfer of Intellectual
Property of ownership of third parties pursuant to a license agreement). The conclusion of the
transactions set forth in this Purchase and Sale Agreement shall not change, hinder or extinguish
any Intellectual Property, nor the rights of the Company to use or enjoy it. The Company did not
grant any similar license or right with respect to any of its Intellectual Properties. The Company
did not breach is in breach with respect to any Intellectual Property right of a third party, nor
breached nor misappropriated of such rights nor, otherwise, are in conflict with any such rights,
except for what is set forth in Attachment 4.23(A)(b).

4.24. Registry of the Internet Address. The Company is the holder of the electronic
addresses (domain) listed in Attachment 4.24(A), which are duly registered at NIC.br.

4.25. Net Working Capital. The Net Working Capital of the Company on the date of the
Financial Statements of the Company is the one set forth in Attachment 4.12(A).

4.26. Debt. The Company acknowledges all debts registered on the date of the Financial
Statements of the Company, as well as those set forth in Attachment 4.14(A).

4.27. Environmental Aspects:-

(a) Except for what is set forth in Attachment 4.17(A)(a) and due to and eventual defaults
not giving rise to a Relevant Adverse Effect to the Company, the Company fully complies with the
entire environmental Law.

(b) Except for what is set forth in Attachment 4.17(A)(b), the Company did not receive any
notice, service of process or any other kind of communication (written or oral), whether from any
Governmental Authority, group of citizens, employees or other nature, pleading that the Company is
not fully complying with the Environmental Laws.

4.28. Bank Accounts. Attachment 4.28(A) lists all bank accounts currently
maintained by the Company and all persons currently authorized to movement the same.

 

 

4.29. Stock. Company’s stock is of quality and quantity usable and subject to sell in the
ordinary course of Company’s business, except fro eventual obsolete items or materials or with
quality inferior to the quality standard of the Company, and such items were, to the extent
required by the applicable GAAP, written-off or deducted at the Financial Statements of the
Company, except as set forth in Attachment 4.29(A).

4.30. Discounts. Except if in the ordinary course of the business or as set forth in
Attachment 4.30(A), the Company did not executed, nor undertook to execute, any written or
oral Agreement by means of which the Company is or would by obliged to offer any abatement,
discount, promotional reduction or similar to its clients or suppliers.

4.31. Fees Payable. Except for what is set forth in Attachment 4.31(A) and
Attachment 4.11(A), the Company is not obliged to pay any fee or other form of compensation
or commission to any person, advisor, attorney, employee, administrator or officer of the Company,
as a result of the conclusion of the operations set forth in this Purchase and Sale Agreement.

4.32. Disclosure. There is no fact, act, circumstance or information known by the Sellers
on this date that may give rise to a Relevant Adverse Effect to the Company (including, without
limitation, avian influenza or tampered milk), not disclosed to the Purchaser, including, without
limitation, related to its respective assets, liabilities, business, results or situation in which,
if disclosed to Purchaser, could, relevantly, influence the decision of Purchaser to conclude the
purchase and sale of shares object hereof under the terms agreed upon herein. None of the reports,
documents, data, Financial Statements of the Company, certificates and other information supplied
by or on behalf of the Company to Purchaser throughout the course of the Audit contained or
contains any information of fact false, imprecise, incomplete or incorrect or omits any fact or
information related to the Company that, if disclosed to Purchaser, could, relevantly, influence
the decision of Purchaser to conclude the purchase and sale of shares object hereof, under the
terms agreed upon herein.

4.33. Clients and Suppliers. As of the Date of the Financial Statements there was no
relevant change to the relations between the Company and such clients or suppliers except if by the
Ordinary Course of Business. The Company did not make and, to its knowledge, no third party made on
its behalf, order or benefit, any illegal or undue payment or provided any gift, benefit or other
incentive to any supplier or client or employee of such supplier or client to induce such supplier
to sell or such client to purchase any product of the Company.

4.34. Power of Attorneys. The Company did not grant powers, by means or public or private
power of attorney, of any kind, to any Person, except for the power of attorneys listed in
Attachment 4.34(A) (excluding, for the purposes of this Clause, powers of attorney ad
judicia granted to attorneys).

(B) Purchaser, hereby, represents and warrants to Sellers, with respect to the Purchaser, what
follows, and such representations and warrants are valid, true, complete and correct on this date
and on the Date of the First Closure.

4.1 Powers and Permits. The legal representatives of Purchaser have the power and the
authority required to the execution and the compliance with this Purchase and Sale Agreement and
the other Documents of the Operation from which Purchaser is a party.

4.2. Valid and Binding Obligation. The Documents of the Operation constitute a valid and
binding obligation in face of the Purchaser, enforceable pursuant to its respective terms. The
execution and the compliance with the Documents of the Operation are not subject to any previous
authorization, approval or consents of any nature resultant from any clause or provision of any
contract or Agreement from which it is a party or under the Law,

 

 

process or judicial order or any
other reason, which had not been obtained (except for the approvals related to the Tag-Along Public
Offer and to the Incorporation of Shares, and for the approval by CADE).

4.3. Breach. The execution and compliance with the Documents of the Operation do not breach
any provision of Law or any Agreement from which the Purchaser may be a party, nor will result (i)
in the early termination of any obligation set forth in or in the termination of any of such
Agreements, or (ii) in any encumbrance of any nature over any of its assets or goods.

4.4. Organization, Good Standing and Ownership. Purchaser is an open company, duly
organized, validly existent and in good standing according to the laws of the Federative Republic
of Brazil. Purchaser does not hold interest, direct or indirectly, in the share capital of any
other company, in Brazil or abroad, or holds any investment or participation in any other Person,
as partner, shareholder or quotaholder, and has no Subsidiary, Affiliated or other company related
to the Company, except fro what is set forth in Attachment 4.4(B).

4.5. Share Capital. The share capital of Purchaser is of one billion six hundred million
reais (R$ 1,600,000,000.00), divided into one hundred sixty five million nine hundred fifty seven
thousand one hundred fifty two (165.957.152) ordinary, nominative, registered shares without face
value, totally subscribed and paid-in. Except as set forth in Attachment 4.5(B), Purchaser
does not have any other Security convertible or exchangeable into shares, issued or outstanding, as
well as any subscription, option or other obligation of any kind (whether materialized or not in
Securities) which bind the Purchaser to issue shares of its capital or any other Securities
convertible into shares or subject to acquisition of right to vote in Purchaser.

4.6. Shareholders’ Agreement. Except for what is set forth in Attachment 4.6(B),
there is no shareholders’ agreement (or other similar agreement restricting or governing, among
other things, the right to vote or the right to dispose of the shares of Purchaser), that binds,
direct or indirectly, the shares of Purchaser, or restricts the exercise of the right to vote with
respect to such Shares, regardless of being filed at the headquarters of Purchaser.

4.7. Litigation. Except for what is set forth in Attachment 4.7(B), there is no
lawsuit, administrative procedure, arbitral court, inquiry or any other kind of investigation
pending or threatened against Purchaser, as the case may be, of civil, commercial, bankruptcy,
corporate, real estate, environmental or other nature that, severally or in the aggregate of a
series of actions on the same theme, which value involved is superior to one million reais (R$
1,000,000.00).

4.8. Business with Related Parties. Except for what is set forth in Attachment
4.8(B), there is no Agreement, contract or covenant currently in force by and between, on the
one side, the Purchaser and, on the other side, any of its shareholders, Affiliated, or companies
Controlled, direct or indirectly, by any of such Persons.

4.9. Business Assets. Purchaser is the legal owner of all assets, goods and rights required
or desirable to the conduction of its business, and such assets, goods and rights are free and
clear from any Encumbrances and are being kept in good state of preservation, functioning and
operation, natural tear and wear excepted, being adequate to the purposes
to which they are intended. Purchaser holds the ownership and the right to use all assets leased
with respect to the operation of its business under the terms of valid and enforceable lease
agreements.

 

 

4.10. Insurances. Purchaser has insurance policies which provide coverage to ensure the
Purchaser and its assets against the usual risks of its activities. All relevant terms, obligations
and provisions of each of such policies are being observed, all premiums owed were paid and no
notice of cancellation with respect to such policies was received by Purchaser.

4.11. Conduction of the Business. As of the date of the Financial Statements of Purchaser,
it developed and conducted its activities strictly in the Ordinary Course of Business and regularly
and at no time (i) suffered any relevant change in its financial, legal, economic or commercial
status; (ii) undertook to assume, or assumed any liability for any obligation, except those
incurred in the Ordinary Course of Business; (iii) sold, transferred or undertook to sell or
transfer any of its assets or goods, except in the Ordinary Course of Business; (iv) had any of its
assets used in its activities destroyed or substantially damaged; (v) increased or undertook to
increase significantly the level of compensation or benefits, whether related or not to salaries,
attributed to any of its administrators, officers or employees.

4.12. Financial Statements. The Financial Statements of Purchaser, attached hereto as
Attachment 4.12(B) (“Financial Statements of Purchaser”) (i) are complete, correct
and true in all aspects, (ii) were based on the books and records of Purchaser and prepared in
accordance to the GAAP, applied consistently, and (iii) the balance statement included in the
Financial Statements of Purchaser reflects correctly the financial situation of Purchaser in the
applicable period.

4.13. Books and Records. The accounting and fiscal books and other financial and commercial
records of Purchaser are complete and correct in all aspects, were and are kept in compliance with
the applicable Laws and with the proper commercial, accounting, fiscal and corporate practices,
including with respect to the maintenance of a system of intern controls, and reflect properly all
business, expenses, revenues, assets and liabilities of Purchaser.

4.14. Absence of Liability not Disclosed. Except for (i) the disclosures set forth in the
Financial Statements of Purchaser, and (ii) liabilities and obligations contracted and incurred by
Purchaser, in the Ordinary Course of Business, Purchaser has no liability or obligations, of
whatever nature, accrued or not, contingent or of any other nature. The reserves set forth in the
Financial Statements of Purchaser are proper and were calculated consistently with the past
practices and current operations of Purchaser.

4.15. Compliance with Laws. Purchaser complied and complies, timely and in all aspects,
with all Laws from any Governmental Authority or arbitral court affecting the business, goods or
assets of Purchaser, except for eventual noncompliance that, severally or in the aggregate, do not
generate a Relevant Adverse Effect to Purchaser. No notice, charge, plead, action or claim was
received by Purchaser or was registered, filed or, to the
knowledge of Purchaser, is imminent against Purchaser pleading a breach to such Laws that may give
rise to a Relevant Adverse Effect to Purchaser and not disclosed to the Sellers.

4.16. Licenses, etc. Purchaser holds the Governmental Permits necessary, required or
desirable to conduct and develop its Activities as such Activities are currently carried out.

4.17. Labor Matters.

(a) Except for what is set forth in Attachment 4.17(B)(a), Purchaser is not a party to any
labor complaint (of individual or class nature) which value involved is superior to one million
reais (R$ 1,000,000.00) and there is no labor complaint pending or threatened.

 

 

(b) There are no strikes, slowdowns or stoppages or pickets in course, or, to the knowledge of
Purchaser, threatened against the Purchaser.

(c) Purchaser’s employees are duly registered according to the demands of the labor and pension
laws and the records of Purchaser are in compliance with such Laws. The salaries, amounts, charges,
benefits, contributions, compensations related to the labor in extraordinary hours, including the
collections owed with respect to the Government Severance Indemnity Fund for Employees and the
National Institute of Social Security to the (or with respect to the) administrators, managers,
employees and associates under the terms of the agreements (including labor agreements or
collective conventions) and the labor and pension Laws and orders were and are being regularly and
timely paid or collected.

(d) the execution of this Purchase and Sale Agreement and the conclusion of the operations set
forth herein shall not give rise to additional payment or increase of compensation to any employee,
administrator or officer of Purchaser.

4.18. Fiscal Matters. All Tax returns of Purchaser were delivered to the proper public
authorities on the due dates. All Taxes owed by Purchaser, included or not in such statements, were
paid on the due dates, except if the payment of such Tax is being legally questioned by Purchaser.
Attachment 4.18(B) lists all lawsuits, processes or administrative proceedings, inspections
or fiscal inspections or inspections related to Taxes involving Purchaser which value involved is
superior to one million reais (R$ 1,000,000.00).

4.19. Consumer. Company complies with the Laws related to consumer’s rights, except for
eventual noncompliance not giving rise to a Relevant Adverse Effect to Purchaser. Company is not a
party to any lawsuit, administrative proceeding, arbitral court, inquiry or other kind of
investigation in course or threatened against Purchaser related to such matter which value involved
is superior to one million reais (R$ 1,000,000.00).

4.20. Agreements. Attachment 4.20(B) lists all Agreements from which Purchaser is a
party which value involved is superior to five million reais (R$ 5,000,000.00) (severally or in the
aggregate in a series of similar Agreements), or that are relevant to the conduction of the
Activities as the same are currently conducted (“Relevant Agreements of Purchaser”). Each
of the Relevant Agreements of Purchaser is in full force, is valid and enforceable
against Purchaser and the other party to such Agreement, being certain that the operations set
forth in this Purchase and Sale Agreement shall not give to right, to the other party to such
Agreement, to the termination or indemnity. Purchaser complied with all relevant provisions of each
of the Relevant Agreements of Purchaser.

4.21. Intellectual Property. Purchaser is the holder of all rights to use or use licenses
regarding the Intellectual Property used in its Activities and listed in Attachment
4.21(B). The Intellectual Property held or used by Purchaser is free and clear from any
Encumbrances and is duly registered before the proper bodies and no service or procedures used by
Purchaser breaches any Intellectual Property or any other right related therewith and there is no
complaint resultant from a breach, misuse or misappropriation of any Intellectual Property. There
is no restriction on the disclosure, use or transfer of such Intellectual Property (except for the
standard provisions restricting the transfer of Intellectual Property of ownership of third parties
pursuant to a license agreement). The conclusion of the transactions set forth in this Purchase and
Sale Agreement shall not change, hinder or extinguish any Intellectual Property, nor the rights of
Purchaser to use or enjoy it. Purchaser did not grant any similar license or right with respect to
any of its Intellectual Properties. Purchaser did not breach is in breach with respect to any
Intellectual

 

 

Property right of a third party, nor breached nor misappropriated of such rights nor,
otherwise, are in conflict with any such rights.

4.22. Net Working Capital. The Net Working Capital of Purchaser on the date of the
Financial Statements of Purchaser is the one set forth in Attachment 4.12(B).

4.23. Debt. Purchaser acknowledges all debts registered on the date of the Financial
Statements of Purchaser.

4.24. Environmental Aspects:-

(a) Purchaser fully complies with the entire environmental Law, except for an eventual
noncompliance that cannot give rise to a Relevant Adverse Effect to Purchaser.

(b) Except for the conduct agreement terms signed up to this date, Purchaser did not received any
notice, service of process or any other kind of communication (written or oral), whether from any
Governmental Authority, group of citizens, employees or other nature, pleading that the Company is
not fully complying with the Environmental Laws.

4.25. Disclosure. There is no fact, act, circumstance or information or omission that may
give rise to a Relevant Adverse Effect to Purchaser not disclosed to the Sellers , including,
without limitation, related to its respective assets, liabilities, business, results or situation
in which, if disclosed to the Sellers, could, relevantly, influence the decision of the Sellers to
conclude the purchase and sale of shares object hereof under the terms agreed upon herein. None of
the reports, documents, data, Financial Statements of Purchaser, certificates and other information
supplied by or on behalf of Purchaser to the Sellers throughout the course of the respective Audit
contained or contains any information of fact false, imprecise, incomplete or incorrect or omits
any fact or information related to the Purchaser, that, if
disclosed to the Sellers, could, relevantly, influence the decision of the Sellers to conclude the
purchase and sale of shares object hereof, under the terms agreed upon herein.

CLAUSE V

CONDITIONS FOR THE CLOSURE

5.1. Conditions Precedent for the Closure Applicable to Purchaser. Without prejudice to any
other provision set forth in this Purchase and Sale Agreement, Purchaser’s obligations to carry out
each of its acts set forth in Clauses 2.1 to 2.4 above, are expressly subject to the compliance
with each of the following conditions (conditions that may be waived, by Purchaser, at its sole
option):-

(a) Obligations. The compliance, by Sellers up to the Date of the First Closure, with all
obligations, covenants and agreements set forth in the Documents of the Operation;-

(b) Permits. All Governmental Permits and other Approvals (except for the Approval of CADE)
demanded from the Sellers for the First Closure shall have been duly obtained and be in full force
and effect; and-

(c) Incorporation of Shares. (i) previous to the Date of the First Closure, the
shareholders of the Company shall have approved, in an extraordinary general meeting, the
Incorporation of the Shares, and (ii) on the Date of the Final Closure of the Operation, the
Company shall have taken all measures, complied with all acts, obtained all approvals and signed
all documents for the conclusion successfully, of the Incorporation of the Shares.

5.2. Conditions Precedent for the Closure Applicable to the Sellers. Without prejudice to
any other provision set forth in this Purchase and Sale Agreement, Sellers’ obligations to carry
out each of its acts set forth in Clauses 2.1 to 2.4 above, are expressly subject to the compliance
with each of the following conditions (conditions that may be waived, by Sellers):-

 

 

(a) Obligations. The compliance, by Purchaser up to the Date of the First Closure, with all
obligations, covenants and agreements set forth in the Documents of the Operation;-

(b) Permits. All Governmental Permits and other Approvals (except for the Approval of CADE)
demanded from Purchaser for the First Closure shall have been duly obtained and be in full force
and effect; and-

(c) Incorporation of Shares. (i) previous to the Date of the First Closure, the
shareholders of the Purchaser shall have approved, in an extraordinary general meeting, in a first
or second call, the Incorporation of the Shares, and (ii) on the Date of the Final Closure of the
Operation, Purchaser shall have taken all measures, complied with all acts, obtained all approvals
and signed all documents for the conclusion successfully, of the Incorporation of the Shares,
including those set forth in this Purchase and Sale Agreement.

CLAUSE VI

RESCISSION AND FINE

6.1. Rescission. This Purchase and Sale Agreement may be rescinded and the operations set
forth herein may be terminated between as of this date and the Date of the First Closure:-

(a) by mutual agreement and in writing between Purchaser and the Sellers; or-

(b) if the First Closure does not take place up to December 30, 2007, exclusively by the Party
complying with its obligations for the First Closure, under the terms hereof; or-

(c) (i) by Sellers, in the event of a failure by Purchaser to constitute the Bank Guarantee on
behalf of the Sellers under the terms and within the period established in Clause 3.3 above; or
(ii) by Purchaser, in the event of failure by Sellers to constitute on behalf of Purchaser the
pledge of the Shares under the terms and within the period established in Clause 6.3 below.

6.2. Procedure and Effect of Rescission.

6.2.1. In the event of rescission of this Purchase and Sale Agreement and termination of the
operations set forth therein, pursuant to any of the events set forth in Clause 6.1 above:-

(a) the Parties agree to keep in confidentiality any and all data, materials and other private
information related to their respective business and obtained from other Parties under the terms of
this Purchase and Sale Agreement and by force of the operations set forth herein, undertaking to
destroy (and confirm such destruction in writing) all originals of documents, paperwork and other
materials related to the operations set forth in this Purchase and Sale Agreement, whether the same
were obtained previously or after the execution hereof, except for the information that the
parties, in common agreement have agreed to include in fact relevant to be published as a result of
this Purchase and Sale Agreement and the other Documents of the Operation;-

(b) all registries, applications and other requirements made under the terms of this Purchase and
Sale Agreement shall, to the extent possible, be interrupted or cancelled; and-

(c) this Clause VI shall survive the rescission of this Purchase and Sale Agreement.

6.2.2. In the event of rescission of this Purchase and Sale Agreement and termination of the
operations set forth herein, pursuant to the terms established in Clause 6.1(a), the Party deciding
upon the rescission shall notify the other Party of its intent, and the Parties shall terminate
this Purchase and Sale Agreement, without any burden, liabilities and/or obligations to any of the
Parties.

6.2.3. In the event of rescission of this Purchase and Sale Agreement and termination of the
operations set forth herein, pursuant to the terms established in Clause 6.1(b), the Party
complying with its obligations, representations and warrants under the terms hereof shall

 

 

notify the other Party, under the terms of clause 9.7 below, the rescission of this Purchase and
Sale Agreement, and shall be owed by the defaulting Party to the Party complying with its
obligations to the First Closure, under the terms hereof, a termination and non-compensatory fine
in the amount of one hundred sixty million reais (R$ 160,000,000.00), within ten (10) Business Days
as of the date of the receipt of the notice of rescission.

6.2.4. In the event of rescission of this Purchase and Sale Agreement and termination of the
operations set forth herein, pursuant to the terms established in Clause 6.1(c), the Party
complying with its obligation and constituted on the behalf of the other Party the respective
guarantee up to the tenth (10th) Business Day as of the execution hereof, established in
this Purchase and Sale Agreement, shall notify the other Party, under the terms of Clause 9.7
below, the rescission hereof, and it shall be owed by the defaulting Party to the Party complying
with its obligation to constitute the guarantee, a termination and non-compensatory fine in the
amount of one hundred sixty million reais (R$ 160,000,000.00), within ten (10) Business Days as of
the date of the receipt of the notice of rescission.

6.3. As a guarantee of the payment by the Sellers to Purchaser of the termination and
non-compensatory fine, under the terms of clause 6.2.3 above, the Sellers constitute, on this date,
on behalf of Purchaser a pledge over seven million one hundred twenty seven thousand (7.127.000)
shares issued by the Company, from which they are the owners and legal holders, representing
approximately 11% of the total share capital of the Company, free and clear from any and all
Encumbrances, under the terms of articles 1.431 and followings of the Brazilian Civil Code and
article 39 of Law 6.404/76, being certain that it shall not be entitled to Purchaser any political
and/or equity right with respect to the Shares pledged hereby.

6.3.1. The pledge over seven million one hundred twenty seven thousand (7.127.000) shares on behalf
of Purchaser, under the terms of Clause 6.3 above, shall be duly registered by Sellers at the
registry of shares of the Company before the registering institution of the Company, evidencing the
pledge of such Shares on behalf of Purchaser, within ten (10) Business Days as of the execution of
this Purchase and Sale Agreement.

6.3.2. Pursuant to the occurrence of the First Closure or the rescission of this Purchase and Sale
Agreement by Sellers under the terms of Clause 6.1 above, the pledge over the seven million one
hundred twenty seven thousand (7.127.000) shares on behalf of Purchaser shall be promptly
cancelled, regardless of any manifestation by Purchaser, the Sellers being, expressly and duly,
authorized to provide for the cancellation of the pledge at the registry of shares of the Company
before the registering institution of the Company.

CLAUSE VII

VALIDITY AND INDEMNITY

7.1. Validity. For the purposes of this Clause VII, the representations and warrants under
the terms of Clause IV above shall remain in force for a term of 18 months as of the execution of
this Purchase and Sale Agreement, regardless of any investigation carried out by the Parties.

7.2. Indemnity owed to the Indemnifiable Party. Sellers shall indemnify, defend and hold
harmless the Purchaser, the Company, their directors, officers, employees, attorneys in fact,
Affiliated companies, representatives and respective successors and assignees (each of them
hereinafter referred to as “Indemnifiable Parties”) free from any and all losses, damages,
obligations, liabilities, contingencies (potential or consubstantiated in lawsuits or
administrative or arbitration proceedings ), losses, liabilities, complaints, suits, processes,
demands, investigations, charges, decisions (including judicial, administrative or arbitral),

 

 

collections, fines, interests, penalties, costs and expenses (including, without limitation,
attorney’s fees, costs and judicial deposits and disbursements) (jointly, “Indemnifiable
Liabilities”, and severally, a “Indemnifiable Liability”) resultant from a breach,
false or inexact representation or warrant provided by the Sellers under the Terms of Clause IV(A)
above.

7.2.1. Sellers shall not be responsible for the indemnity of a Indemnifiable Liability to the
extent in which the act or fact giving rise to the respective Indemnifiable Liability is disclosed
in any Attachment hereto as an exception to a representation of warrant set forth in Clause IV(A)
above.

7.3. Limits to Indemnity. The indemnity set forth in Clause 7.2 above shall only be owed if
and when the total value of the Indemnifiable Liabilities incurred, jointly or severally, exceed
fifty million reais (R$ 50,000,000.00).

7.3.1. Once reached the limit set forth in Clause 7.3 above and observed the maximum limit below,
Sellers shall indemnify the Indemnifiable Parties by the value of Indemnifiable Liabilities
exceeding the indemnity limit set forth in Clause 7.3 above, observing the proportionality of the
shares acquired by Purchaser from Sellers under the terms of Clause 2.1 above. Thus, Sellers shall
be liable for the payment to the respective Indemnifiable Party (including Purchaser) of 35.74% of
the value of any Indemnifiable Liability exceeding the indemnity limit set forth in Clause 7.3
above, up to the maximum limit of sixty million reais (R$ 60,000,000.00). So that there are no
doubts, the limit established above refers to the total value to be indemnified by the Sellers
within the proportion established, and not to the total of Indemnifiable Liabilities incurred by
the Indemnifiable Parties (that is, the limit of the indemnity value mentioned above shall be
reached when the total of Indemnifiable Liabilities incurred by the Indemnifiable Parties exceed
two hundred seventeen million eight hundred seventy nine thousand one hundred twenty seven reais
(R$ 217,879,127.00)).

7.4. Other Measures. The right to indemnity set forth in Clause 7.2 above shall not hinder
any Indemnifiable Party to obtain a provisional measure or other injunction or similar non-monetary
remedy. The right to indemnity under the terms of Clause 7.2 above shall not be affected by any
investigation carried out, or knowledge acquired at any time by the respective Indemnifiable Party,
whether before or after this date, with respect to the exactness, truth, completeness of any
representation or warrant.

7.5. Limit Term of the Presenting a Demand. Sellers shall only be liable for the indemnity
of the Indemnifiable Liabilities resultant from Third Party Demands against any
Indemnifiable Party, under the terms set forth in this Clause VII, notified to it within the term
of eighteen (18) months as of the execution of this Purchase and Sale Agreement. After the term of
eighteen (18) months as of the execution of this Purchase and Sale Agreement, the Sellers shall not
be liable for the indemnity of any Indemnifiable Liability and the Indemnifiable Parties shall no
longer have any right to indemnity by the Sellers under the terms of this Purchase and Sale
Agreement (except for an eventual indemnity related to a Third Party Demand notified within such
term of 18 months and not yet decided finally and without appeal).

7.6. Indemnifiable Liabilities Resultant from an Indemnifiable Event. If, at any time as of
this date, a Indemnifiable Party becomes aware that any act, fact, omission or any event (current
or contingent) subject to indemnity under the terms of this Clause VII and

 

 

not resultant from a
Third Party Demand (as, for example, an active termination) (“Indemnifiable Event”), such
Indemnifiable Party shall comply with the following.

7.6.1. Notice of Indemnifiable Event. The Indemnifiable Party shall send to Sellers a
written notice informing the existence of the Indemnifiable Event (“Notice of Indemnifiable
Event”) within five (5) Business Days as of it became aware thereof. The Notice of
Indemnifiable Event shall expose the Indemnifiable Event and the circumstances, events, facts,
obligations, complaints, documents, information or matters that justify the Indemnifiable Event,
the value of the Indemnifiable Liability or the method of calculation thereof, and shall further
contain a reference to the provisions hereof as a result of which the right to indemnity exists or
is pleaded. The failure to deliver prompt Notice of Indemnifiable Event shall not be considered as
a waiver by the Indemnifiable Party to the right to plead for indemnity from Sellers with respect
to the Indemnifiable Liability in question and to the obligation of Sellers to indemnify, except if
the failure to notify results in a damage to the Sellers.

7.6.2. Payment of Indemnity Resultant from an Indemnifiable Event. Sellers shall perform
the payment of the indemnity owed to the Indemnifiable Party resultant from an Indemnifiable Event
under the terms of this Clause 7.6 within 72 hours as of the receipt of the respective Notice of
Indemnifiable Event in this sense. Such payment shall be made net from any Taxes. In the event the
Sellers disagree from the indemnity pleaded by means of the Notice of Indemnifiable Event and the
Parties do not reach an agreement in this respect, the dispute between the Parties shall be settled
under the terms of Clause 9.9.1 below.

7.7. Third Party Demands. Any and all demand, complaint, investigation, inquiry, lawsuit or
administrative or arbitration proceeding of any nature, charge, notice, claim, judicial or
extrajudicial notice existent on this date or that may be filed or initiated by a third party
against any Indemnifiable Party that make or may make Sellers liable for the payment of indemnity
under the terms of Clause 7.2 above (each one hereinafter referred to as a “Third Party
Demand”), are subject to the terms and conditions set forth in this Clause 7.7.

7.7.1. Administration of third Party Demands. In the event of receipt of a service of
process by an Indemnifiable Party regarding a Third Party Demand, the Indemnifiable Party shall
notify the Sellers, under the terms of Clause 9.7 below, the receipt of such Third Party Demand
within five (05) Business Days after its receipt, forwarding to Sellers any and all information
that it is aware of with respect to the Third Party Demand. The failure to notify the Sellers of a
Third Party Demand as set forth in this Clause 7.7.1 shall not be considered as a waiver by the
Indemnifiable Party to the right to plead indemnity from Sellers with respect to the Indemnifiable
Liability in question and to the obligation of Sellers to indemnify, except if the failure to
notify results in damage to the Sellers. Once received by the Sellers the notice from the Purchaser
in respect to the Third Party Demand, the Sellers shall have a term of ten (10) Business Days as of
the receipt of the notice sent by the Indemnifiable Party questioning such act, generating factor
or request giving rise to the respective Third Party Demand. In the event the Parties do not reach
an agreement with respect to the consideration of the Third
Party Demand for the purposes of
indemnity by Sellers set forth in this Clause VII, or if the Sellers do not manifest regarding the
Third

 

 

Party Demand notified by the Indemnifiable Party, the dispute between the Parties shall be
settlement under the terms of Clause 9.9.1 below.

7.7.1.1. Purchaser shall, up to the fifteenth (15th) Business Day of the first month of
each quarter, prepare and forward to the Sellers a complete report describing the process
proceeding during the immediately previous quarter regarding any Third Party Demand. The
administration and conduction of all third Party Demands shall be entitled to the respective
Indemnifiable Party. In the event of controversy between the Sellers and the respective
Indemnifiable Party with respect to the administration or conduction of a determined Third Party
Demand, Sellers may, at their exclusive option, assume the administration and conduction of the
applicable Third Party Demand, at its costs, surviving the obligation to indemnify the Sellers for
the Indemnifiable Liability resultant from such Third Party Demand under the terms of this Clause
VII.

7.7.2. Agreement Related to a Third Party Demand. The execution of any agreement,
commitment or settlement with respect to a Third Party Demand filed against any Indemnifiable Party
giving rise to the obligation to indemnify under the terms hereof shall be previously agreed by the
Sellers and by the respective Indemnifiable Party, regardless of who is administrating such Third
Party Demand.

7.7.3. Assistance by the Sellers. The Sellers shall provide or cause to be provided to the
applicable Indemnifiable Party all assistance that may be requested with the purpose of avoiding,
contesting, discussing, resisting, appealing, investigating, remedy or defending a Third Party
Demand.

7.7.4. Payment of Indemnity for Indemnifiable Liabilities Resultant from Third Party
Demands. Any payment of indemnity for Indemnifiable Liabilities resultant from a Third Party
Demand shall be made by the Sellers, net from any Taxes, within 72 hours as of the notice by the
respective Indemnifiable Party (i) final decision of the respective
sentence, (ii) the issuance of final arbitral report, (iii) determination, by any Governmental
Authority, performance of judicial deposit (or similar act in the administrative sphere) by the
respective Indemnifiable Party, or (iv) the execution of any agreement, commitment or settlement
(judicial or not) by the respective Indemnifiable Party. Equally, any and all costs, expenses or
charges incurred by the Indemnifiable Party at the administration of a Third Party Demand
(including, without limitation, attorney’s and other advisors’ fees) shall be paid or refunded by
the Sellers to the proper Indemnifiable Party, within 72 hours as of the submission of the
respective payment slip.

7.8. Monetary Correction of the Indemnity for Indemnifiable Liability. The value of any
indemnity shall be corrected monetarily as of the date in which the respective indemnity is
considered owed or refundable up to the date of the effective payment, pursuant to the variation of
the IPCA, or other index that may replace it, throughout the period.

7.9 Fine. In the event of default by the Sellers in the payment of any indemnity owed under
the terms of this Purchase and Sale Agreement, the Sellers shall pay additionally to the indemnity
value duly corrected by the IPCA, a fine in the amount of 10% of the total value owed.

7.10. Specific Performance. The Parties acknowledge and agree that the indemnity owed under
the terms of this Clause VII shall not be sufficient to the complete repair of the

 

 

damages suffered
as a result of noncompliance with the obligations hereof and any Party may, at any moment, require
the specific performance of the obligations set forth in this Purchase and Sale Agreement under the
terms of the applicable legislation.

7.11. Indemnity by Purchaser. Sellers acknowledge (i) the characteristic of Purchaser of
open company, and (ii) the character simply informative of the representations and warrants
provided by Purchaser in Clause IV above. Thus, the Sellers, herein and hereby, waive, irrevocably
and unchangeably, to any indemnity (or right to indemnity) that may be pleaded by the Sellers or
owed by the Purchaser related to, resultant from or arising from this Purchase and Sale Agreement
(including, without limitation, with respect to what is set forth in the Brazilian Civil Code
regarding indemnity for losses and damages, except in the case of damage attributed to Purchaser,
in a final decision).

CLAUSE VIII

ADDITIONAL OBLIGATIONS

8.1. Consents. Cooperation. The Parties shall carry out or provide all registries and
Governmental Permits and third party consents that may be needed to fulfill the operations set
forth in the Documents of the Operation. In particular, the Parties shall take all steps and sign
all documents needed or required to the conduction and conclusion of the Primary Public Offer,
Tag-Along Public Offer and Incorporation of Shares.

8.2. Advertisement. Except for the joint disclosure by the Parties of relevant fact under
the terms of Attachment 8.2 and the press release after the execution of this Purchase and
Sale Agreement respectively, the Parties, their Affiliated companies and advisors shall not issue
or permit any press release or other kinds of announcements with respect to the Documents of the
Operation or to the operations considered therein, except pursuant to the previous consent of the
other Parties.

8.3. Conduction of the Activities. Up to the Date of the Final Closure of the Operation,
Purchaser shall conduct and Sellers shall cause the Company to conduct its activities in the
Ordinary Course of Business, not adopting any practice not recurrent, not declaring, paying or
distributing dividends or interests over proper capital, except the statement by Purchaser of
dividends or interests over proper capital in the second semester of 2007, not executing loan
agreements with any party, ensuring the preservation of the organization of its business, the
availability of the services of their current administrators and employees in strategic functions,
and the preservation of the good relationship with third parties with which the Company and
Purchaser, as the case may be, maintain commercial relations.

8.4. Access to Information. Up to the Date of the final Closure of the Operation, the
Company shall grant (and the Sellers shall cause the Company to grant) to Purchaser and to its
respective representatives and advisors, access, during commercial hours and pursuant to previous
notice of 24 hours, to the premises, books and records of the Company, providing the information
and documents requested by Purchaser that are under its possession and related to it. Purchaser
shall provide the same treatment to the Sellers.

8.5. Release of Sellers as Guarantors of the Company. Purchaser, herein and hereby,
undertakes, irrevocably and unchangeably, as of the Date of the First Closure, to cause the Company
to perform all measures and procedures required to the release of the Sellers as guarantors of
obligations of the Company as soon as possible.

 

 

CLAUSE IX

MISCELLANEOUS

9.1. Milk Products Department. With the purpose of fully complying with what is set forth
in the shareholders’ agreement of Batávia S.A. Indústria de Alimentos, executed on May 25, 2006,
Purchaser shall, after the Final Closure of the Operation, begin and take all measures needed or
required to the transfer (by means of spin-off, contribution, sale, assignment or otherwise), to
Batávia S.A. Indústria de Alimentos or to other company Subsidiary or Affiliated to Batávia S.A.
Indústria de Alimentos, all assets of the Company and its Subsidiaries related to the milk
activity, which compete with the activity of Batávia S.A. Indústria de Alimentos. Sellers, herein
and hereby, irrevocably and unchangeably manifest its knowledge and agreement with such transfer.

9.2. Sale Option. Sellers, herein and hereby, declare to be fully aware of and agree to the
existence of the sale option of all shares held by the minority shareholders of Batávia S.A.
Indústria de Alimentos, option to be exercised against Purchaser, by a price to be determined at
that time by the applicable parties. The price of acquisition related to the sale option mentioned
above shall be paid by Purchaser in cash or pursuant to the issuance of shares of the Purchaser for
such minority shareholders of Batávia S.A. Indústria de Alimentos, at the option of the minority
shareholders.

9.3. Irrevocably and Unchangeably. This Purchase and Sale Agreement is executed irrevocably
and unchangeably, binding the Parties, their heirs and permitted successors at any title.

9.4. Assignment. None of the Parties may assign or transfer any right or obligation
resultant from this Purchase and Sale Agreement without the previous consent from the other
Parties.

9.5. Amendments; Waivers. The tolerance by any Party with respect to the strict
noncompliance with these provisions shall not be interpreted as a waiver to the future compliance
therewith and no waiver to the compliance with such provisions by the Party shall be considered
valid unless in writing and signed by the Party. Any provision of this Purchase and Sale Agreement,
even if applicable to only a few of the parties, shall only be amended in writing and pursuant to
the execution by all signatories hereto. The rights and remedies set forth herein are cumulative
and not excluding with respect to any other rights or remedies otherwise available to any of the
Parties under the terms of the Law. The rights and remedies attributable to the Parties with
respect to the breach of the obligations or agreements or the noncompliance with any condition
shall not be in any way limited by the fact that the act, omission, occurrence or other situation
in which is determined as the breach is based on may also be the object of other obligations or
agreements with respect to which no breach took place.

9.6. Entire Agreement. This Purchase and Sale Agreement constituted the entire agreement of
the Parties, replacing all previous agreements and understandings between the Parties, oral or
written, with respect to the object of this Purchase and Sale Agreement.

9.7. Notices and Communications. All notices, demands, requests, consents, approvals,
statements, deliveries or other communicates under the terms hereof shall be considered valid and
effective when in writing and delivered in hands or sent by fax or similar method, express services
or registered letter, with notice of receipt and pre-paid, to the addresses set forth below:-

 

 

(a) If to the Company:-

At.: Mr. Rami Goldfajn.

Av. Das Indústrias, 720, Porto Alegre, RS.

Fax: (+55 51) 3371-7393.

With copies to (which shall not constitute a notice, communication or warning):-

Barbosa, Mussnich & Aragão Advogados.

Av. Almirante Barroso 52, 32o andar, Rio de Janeiro, RJ.

At.: Dr. Luciano Puccini Medeiros / Dr. Alexandre Couto Silva.

Fax: (+55 21) 2262-5536.

(b) If to any Seller:-

Barbosa, Mussnich & Aragão Advogados.

Av. Almirante Barroso 52, 32o andar, Rio de Janeiro, RJ.

At.: Dr. Luciano Puccini Medeiros / Dr. Alexandre Couto Silva.

Fax: (+55 21) 2262-5536.

(c) If to Purchaser:-

At.: CEO.

Av. Escola Politécnica, 760, São Paulo, SP.

Fax: (+55 11) 3714-9393.

With copies to (which shall not constitute a notice, communication or warning):-

Machado, Meyer, Sendacz e Opice – Advogados.

At.: Dr. José Roberto Opice.

Fax: (+55 11) 3150-7071.

or to other addresses as may be provided as established in this item by any of the Parties of this
Purchase and Sale Agreement.

9.8. Costs and Expenses. The Company and Purchaser shall bear with the respective costs and
expenses related to the preparation, negotiation and execution of this Purchase and Sale Agreement
and the other Documents of the Operation, including, without limitation, to the payment of fees and
expenses related to the performance of Audit and expenses related to press advisory services. The
Parties hereby agree that the costs and expenses set forth in Attachment 4.31(A) shall be
of full and exclusive liability of the Company and shall be duly paid up to the date of the Date of
the First Closure.

9.9. Applicable Law and Jurisdiction. This Purchase and Sale Agreement shall be governed
and interpreted pursuant to the laws of the Federative Republic of Brazil.

9.9.1. The Parties agree that any controversies resultant from this Purchase and Sale Agreement
that may not be settlement amicably by the Parties within a maximum term of thirty (30) days, shall
be settled exclusively by arbitration, at the capital of the State of São Paulo, by the
Brazil-Canada Chamber of Commerce (“Mediation and Arbitration Chamber”) and pursuant to its
rules, this Clause serving as a binding clause for the purposes of what is set forth in paragraph 1
of article 4 of Law 9.307/96. The administration and correct development of the arbitral procedure,
equally, shall be entitled to the Mediation and Arbitration Chamber.

9.9.2. For the purposes of arbitration, Purchaser shall nominate an arbitrator and Sellers, jointly
and in common agreement, shall nominate the second arbitrator. The arbitrators nominated pursuant
to the previous sentence shall nominate a third arbitrator. If any of the

 

 

Parties fail to nominate
the respective arbitrator within ten (10) days as of the receipt of notice in this sense, shall
entitle the President of the Mediation and Arbitration Chamber to nominate such arbitrator within
ten (10) days. Equally, in the event the arbitrators indicated do not reach an agreement with
respect to the nomination of the third arbitrator within ten (10) days as of the date of nomination
of the second arbitrator, the President of the Mediation and Arbitration Chamber shall be entitled
for such within ten (10) days as of the date in which is verified such controversy.

9.9.3. The arbitration initiated under the terms set forth above shall be considered and decided
exclusively based on the laws of the Federative Republic of Brazil. The arbitration procedures
shall be carried out in Portuguese in the city of São Paulo, State of São Paulo.

9.9.4. The expenses related to any controversy submitted to arbitration under the terms of this
Clause shall be born by the party defeated in the arbitral procedure, including the attorney’s fees
and costs reasonably incurred by the winning party.

9.9.5. The Parties acknowledge that any order, decision or arbitral determination shall be final
and binding, the final report constituting an extrajudicial executive deed binding the Parties and
their successors, which undertake to comply with what is determined in the arbitral sentence,
regardless of judicial foreclosure.

9.9.6. Notwithstanding the provisions above, each Party holds the right to require judicial
measures: (a) to obtain any urgency measures (provisional measures, injunctions, advance decisions,
among others) that may be necessary or desirable previously to the filing of the arbitral
procedure, and, such measure, shall not be interpreted as a waiver to the arbitral procedure by the
Parties; and (b) to perform any arbitral decision, including the final report. Therefore, the
Parties elect the venue of the district court of São Paulo, State of São Paulo as competent,
waiving to any other, no matter how privileged.

9.10. Submission to CADE. The Parties agree that the Purchaser and the Company shall submit
the operation considered herein to the approval of the Administrative Council for Economic Defense,
of the Economic Law Department – SDE, and the Economic Follow-Up Secretariat – SEAE (jointly,
“CADE”). The First Closure and/or the Closure shall not be delayed by the absence of such
approval. The submission of the operation to CADE shall take place within fifteen (15) Business
Days as of the date of execution of this Purchase and Sale Agreement. If such approval is not
granted or if obtained with restriction, the Parties shall decide in common agreement on how to
comply with CADE’s decision. The expenses born with the submission of the operation to CADE shall
be born by Purchaser.

In witness whereof, the parties sign this Purchase and Sale Agreement in 06 counterparts (being
only 02 counterparts of the Attachments), all with the same tenor and form, before the two
undersigned witnesses.

Porto Alegre, October 30, 2007.

PERDIGÃO S.A.

Signed: [illegible signature].

Name: [in blank].

Title: [in blank].

 

 

Signed: [illegible signature].

Name: [in blank].

Title: [in blank].

SHAN BAN CHUN.

Signed: /s/ Shan Ban Chun.

NATALI SHI WAI SHAN.

Signed: /s/ Natali Shi Wai Shan.

LEONARDO SHI LUNG SHAN.

Signed: /s/ Leonardo Shi Lung Shan.

WARREN SHI HOW SHAN.

Signed: /s/ Warren Shi How Shan.

ELEVA ALIMENTOS S.A.

Signed: [illegible signature].

Name: [in blank].

Title: [in blank].

Signed: [illegible signature].

Name: [in blank].

Title: [in blank].

Witnesses:

1.

Signed: [illegible signature].

Name: Edina Navarini.

ID: 1037635008.

2.

Signed: [illegible signature].

Name: Sandra Maria [illegible].

ID: 8034297419.Exhibit 4.4

EXHIBIT 4.4

 

LOAN AGREEMENT

 

Between:

PETROBRAS INTERNATIONAL BRASPETRO BV. — PIB-BV

And

PETROBRAS ENERGIA S.A.

 

 

LOAN AGREEMENT NUMBER:       /2008

The undersigned:

1 PETROBRAS INTERNATIONAL BRASPETRO BV., a company incorporated and existing under the laws of
NETHERLANDS, having its registered office in , Prins Bernhardplein 200, 1097 JB, Amsterdam, the
Netherlands, hereinafter referred to as : “Borrower”

and

2 PETROBRAS ENERGIA S.A., a company incorporated and existing under the laws of Argentina, with
registered office at Maipu 1, 22nd floor, C1084ABA, Buenos Aires, Argentina, hereinafter
referred to as: “Lender”.

Lender and Borrower hereinafter jointly referred to as: “Parties” and individually also as:
“Party”,

Whereas:

(a) Parties are part of the international group of companies of Petroleo Brasileiro S.A.
(“PETROBRAS”);

(b) PETROBRAS is a global leader in the oil, gas, and energy industry;

(c) It has been agreed between the Parties that Lender lends to Borrower an amount of USD
107,000,000.00 (United States Dollars One Hundred and Seven Million) (the “Loan”);

(d) Parties now wish to enter into this agreement for the purpose of formalizing and setting out
the terms and conditions of the Loan ( the “Agreement”).

 

 

Have agreed as follows:

Article 1 — Loan

1.1 On the terms and subject to the conditions set out herein, Lender has agreed to lend the Loan
to Borrower and Borrower has agreed to borrow the Loan from Lender.

1.2 The Loan will be made available to Borrower on December 15, 2008 in the following account of
the Borrower

Bank of America

100 West 33 rd Street — 4th Floor

New York, NY 10001 — USA

Attention: Paulo Pereira / Alfonso Guevara

Fed ABA: 026009593

Swift: BOFAUS3N

CHIPS ABA: 0959

Account: 6550-7- 23338

Petrobras International Braspetro B.V. — PIB BV

Article 2 — Interest

2.1 The Loan shall bear interest during the applicable Interest Period at a rate per annum equal to
the LIBOR for thirty (30) days plus 0.15%. The amount of interest to be paid will be calculated on
the basis of a year of three hundred and sixty (360) days for the actual number of days elapsed.

“LIBOR” — means, in relation to any amount owed by the Borrower in Dollars hereunder on which
interest for a given period is to accrue, the rate per annum to be, with respect to the relevant
Interest Period:

(a) The arithmetic mean of the offered quotations for LIBOR published by the BBA for such
Interest Period at or about 11.00 a.m. (London time) on the Reset Date for a period of
thirty (30) days.

(b) If such rate is not published by BBA or the BBA ceases to exit or function, the
arithmetic mean of the offered quotation on the Telerate Service Page 3750 (or such other
page as may replace the designated page on the Telerate Service or such other service as
may be nominated by the British Bankers’ Association) (“Telerate Page 3750”) at or about
11:00 a.m. (London time) on the Reset Date for such Interest Period.”

“Business Day” shall mean in this Agreement any working day in which banks are open for banking
activities in London (GB), Netherlands, New York (USA) and Argentina.

 

 

2.2. Accrued but unpaid interests shall be paid on each Period Ending Date as defined in 2.5, or as
otherwise indicated by the Lender and accepted by the Borrower.

2.3 Lender shall receive all payments free and clear of, and without withholding or deduction for
or on account of, any present or future taxes, duties, fines, penalties, assessments or other
governmental charges (“Taxes”). In case that the Borrower is required by law to withhold or deduct
such Taxes, the Borrower will pay to the Lender such additional amounts as may be necessary to
ensure that the amounts received by the Lender will equal the amount of principal, interest and
additional amounts, if any, which would have been receivable by the Lender in the absence of such
withholding or deduction.

2.4 If any such payment date falls in a day other than a Business Day, the payment will be made in
the following Business Day.

2.5 Interest Period

The initial Interest Period shall commence on the date of the disbursement and shall end as
provided in the definition of Interest Period. Thereafter, each Interest Period shall commence and
end as provided in the definition of Interest Period, provided that the last Interest Period shall
end on the Maturity Date.

“Interest Period” means the period commencing on (and including) (i) the date of the disbursement
of the Loan or (ii) the Period Beginning Date, as applicable, and ending on (but excluding) the
Period Ending Day as applicable.

“Period Beginning Date” means each of the dates indicated in the column Period Beginning of Annex
1.

“Period Ending Date” means each of the dates indicated in the column Period Ending of Annex 1

“Reset Date” means, for each Interest Period, the first Business Day before such the Period
Beginning Date, as stated in the column Reset Date of Annex 1.

Article 3 — Term and Accelerated Repayment

3.1 Term. The Loan shall be repaid in full on December 15, 2009 (the “Maturity Date”) together with
all accrued and unpaid interest and any other amounts due under the Agreement, without prejudice to
article 3.2.

3.2 Accelerated repayment. The Loan can be repaid at any time in full or in part together with all
accrued and unpaid interest and any other amounts due under the Agreement pursuant to a Voluntary
Prepayment executed by the Borrower and/or a Mandatory Prepayment requested by the Lender, in
accordance with article 5 of the Agreement.

 

 

Article 4 — Payments

4.1 Payments made by Borrower to Lender shall be made into the following account of the Lender:

Citibank NY

111th. Wall Street — 21st. Floor

New York, NY 10005 — USA

Attention: Federico Baldou Gallo

ABA: 021000089

Swift: CITIUS33

Account: 36968355

Petrobras Energia S.A.

4.2 All payments by Borrower, whether on the Loan or interest, shall be made in United States
Dollars (USD).

Article 5 —  Voluntary and Mandatory Prepayments

5.1 Voluntary Prepayments. The Borrower may at any time but upon at least three (3)
Business Days’ notice to the Lender, prepay or cause to be prepaid the Loan in whole or in part, in
amounts aggregating at least USD1,000,000 or any larger multiple of USD100,000, by paying the
principal amount to be prepaid together with interest accrued thereon to the date of prepayment (a
“Voluntary Prepayment”). Such notice of Voluntary Prepayment shall not be revocable by the
Borrower. Any Voluntary Prepayment made by the Borrower shall be applied as follows: (i) first, to
the payment of accrued but unpaid interest and other amounts (excluding principal) in respect of
the Loan; (ii) second, to the payment of the then due and unpaid principal of the Loan; and (iii)
third, to the payment of any other amounts then payable to the lender hereunder.

5.2 Mandatory Prepayments. The Lender may at any time but upon at least three Business Days’
notice to the Borrower cause the Borrower to prepay the Loan in whole or in part, in amounts
aggregating at least USD1,000,000 or any larger multiple of USD100,000, by paying the principal
amount to be prepaid together with interest accrued thereon to the date of prepayment (a
“Mandatory Prepayment”). The Borrower shall not refuse such notice of Mandatory Prepayment.
Any Mandatory Prepayment requested by the Lender shall be applied as follows: (i) first, to the
payment of accrued but unpaid interest and other amounts (excluding principal) in respect of the
Loan; (ii) second, to the payment of the then due and unpaid principal of the Loan; and (iii)
third, to the payment of any other amounts then payable to the Lender hereunder.

 

 

Article 6 — Termination

6.1 Either Party shall have the right to terminate the Agreement with immediate effect if and when
the other Party is in default. A Party shall only be in default following receipt of a written
notice from the other Party in this respect expressing which obligation(s) of this Agreement has
(have) not been performed and requesting that the default be remedied, and the Party in default has
not remedied its default within a period of thirty (30) days after the date of such notice.

6.1.1 In case the Borrower doesn’t pay to the Lender, in the date of expiration, the amount of the
Loan, increased with the interest as referred in the item 2.1, the Borrower will be automatically
in default, and the amount to be paid will also be increased with a 2% (two percent) fine.

6.1.2 In case the payment referred in the item 6.1.1 is made up to five (5) days after the
expiration date, the above-referred fine will not be applied.

6.1.3 In case the Borrower doesn’t pay to the Lender, in the due date for a Mandatory Prepayment,
the amount of the Loan, increased with the interest as referred in the item 2.1, the Borrower will
be automatically in default, and the amount to be paid will also be increased with a 2% (two
percent) fine.

6.1.4 In case the payment referred in the item 6.1.3 is made up to five (5) days after the
expiration date, the above-referred fine will not be applied.

6.2 Parties may also decide to terminate the Agreement by mutual agreement.

6.3 In addition to its right to terminate the Agreement in accordance with Article 6.1 above,
Lender shall have the right to terminate the Agreement with immediate effect in case:

a petition for a moratorium has been filed by Borrower with respect to Borrower or a moratorium is
imposed upon Borrower;

a petition for bankruptcy has been filed with respect to Borrower or Borrower is declared bankrupt;

a resolution to dissolve the Borrower has been made;

a receiver has been appointed with respect of Borrower;

Borrower is placed under guardianship; or

Borrower is no longer part of the international group of companies of PETROBRAS due to a
divestiture of PETROBRAS from the Borrower.

 

 

Article 7 — Notices

7.1 Any notice or other communication under or in connection with the Agreement shall be in writing
in the English language and shall be delivered by registered mail or facsimile to the respective
addresses or fax numbers as set out in Article 7.2 or any new address or fax number as a Party may
have notified the other Party in accordance with this Article 7.

7.2 Any notice or communication to Lender and Borrower shall be sent to the following address:

Lender:

PETROBRAS ENERGIA S.A, Maipu 1, 22nd Floor, C1084ABA, Buenos Aires, Argentina.

Borrower:

PETROBRAS INTERNATIONAL BRASPETRO BV. — PIB-BV

Rokin, 55, 1012 kk, THE NETHERLANDS, P.O.Box 990 — 1000 AZ, AMSTERDAM

Article 8 — Waiver

Any forbearance or delay on the part of any Party enforcing any provision of the Agreement or any
of its rights hereunder shall not be constructed as a waiver of such provisions or of a right
thereafter to enforce the same.

Article 9 — Invalidity

In the event any provision in the Agreement is void, invalid or in any way not enforceable, the
validity and enforceability of the remaining provisions shall not in any way be affected. The
provision concerned will be converted by operation of law into a legally valid arrangement as
similar in content and effect to the invalid provision as possible, unless and until the Parties
themselves by mutual consent replace the provision concerned with a legally valid alternative
arrangement.

Article 10 — Assignment and transfer

Parties may only assign or transfer, in whole or in part, any of their rights or obligations
hereunder by mutual and prior agreement.

 

 

Article 11 — Amendments

No variation or amendment of the Agreement shall be valid and binding unless agreed to in writing
by Parties.

Article 12 — Governing law and Competent court

12.1 Governing law. The Agreement shall be construed in accordance with and shall in all respects
be governed by the laws of Argentina.

12.2 Arbitration. Any dispute or difference arising in connection with the Agreement that cannot be
amicably settled between the Parties shall be finally settled by arbitration in accordance with the
rules of Arbitration of The International Chamber of Commerce. Unless Parties agree otherwise, one
arbiter will suffice. The language of such arbitration shall be English. The place of arbitration
shall be in Buenos Aires, Argentina.

This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.

	 	 	 
	/s/ Claudio German Diaz
 

PETROBRAS ENERGIA S.A.

	 	 
	By virtue of power of attorney
	 	 
	 
	 	 
	/s/ Fernando Bergé
 

PETROBRAS ENERGIA S.A.

	 	 
	By virtue of power of attorney
	 	 
	 
	 	 
	/s/ Marcos Antonio Zacarias
 

PETROBRAS INTERNATIONAL BRASPETRO BV. — PIB-BV

	 	 
	By virtue of power of attorney
	 	 

 

 

ANNEX I

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Reset Dates	 	 	Period Beginning	 	 	Period Ending	 
	Period 0
	 	 	12-12-08	 	 	 	15-12-08	 	 	 	30-12-08	 
	Period 1
	 	 	29-12-08	 	 	 	30-12-08	 	 	 	02-02-09	 
	Period 2
	 	 	30-01-09	 	 	 	02-02-09	 	 	 	02-03-09	 
	Period 3
	 	 	27-02-09	 	 	 	02-03-09	 	 	 	31-03-09	 
	Period 4
	 	 	30-03-09	 	 	 	31-03-09	 	 	 	30-04-09	 
	Period 5
	 	 	29-04-09	 	 	 	30-04-09	 	 	 	01-06-09	 
	Period 6
	 	 	29-05-09	 	 	 	01-06-09	 	 	 	30-06-09	 
	Period 7
	 	 	29-06-09	 	 	 	30-06-09	 	 	 	31-07-09	 
	Period 8
	 	 	30-07-09	 	 	 	31-07-09	 	 	 	01-09-09	 
	Period 9
	 	 	28-08-09	 	 	 	01-09-09	 	 	 	30-09-09	 
	Period 10
	 	 	29-09-09	 	 	 	30-09-09	 	 	 	02-11-09	 
	Period 11
	 	 	30-10-09	 	 	 	02-11-09	 	 	 	30-11-09	 
	Period 12
	 	 	27-11-09	 	 	 	30-11-09	 	 	 	15-12-09

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