Document:

Form of Shareholders' Agreement, Annex 3.1.10 to the Investment Agreement

 Exhibit 10.2 
 Shareholders Agreement 
 Execution Copy 
 EXHIBIT 3.1.10 TO THE INVESTMENT AGREEMENT 
 SHAREHOLDERS AGREEMENT OF VOTORANTIM CELULOSE E PAPEL S.A. 
 By this agreement: 

on the one part, 
 I. BNDES PARTICIPAÇÕES S.A. – BNDESPAR, wholly-owned subsidiary of the NATIONAL BANK OF ECONOMIC AND SOCIAL DEVELOPMENT – BNDES, with its principal place of business in the City of Brasília,
Federal District, in the South Banking Sector, Suite 1, Block “J”, BNDES Building, 12th and 13th
floors, and with offices in the City of Rio de Janeiro, State of Rio de Janeiro, at Avenida República do Chile, 100, part, enrolled with the National Corporate Taxpayers Register of the Ministry of Finance under CNPJ/MF No.
00.383.281/0001-09, herein represented pursuant to its Bylaws (“BNDESPAR”), 
 And, on the other part, 
 II. VOTORANTIM INDUSTRIAL S.A., with its principal place of business in the City of São Paulo, State of
São Paulo, at Rua Amauri, 255/13th floor, suite A,
enrolled with the National Corporate Taxpayers Register of the Ministry of Finance under CNPJ/MF No. 03.407.049/0001-51, herein represented pursuant to its By-laws (“VID”), 
 BNDESPAR and VID are hereinafter referred to jointly as “Parties” or “Shareholders”, and individually and indistinctly as a
“Party” or a “Shareholder”, 
 and, as intervening party 
 III. VOTORANTIM CELULOSE E PAPEL S.A., a company with its principal place of business in the City of São
Paulo, State of São Paulo, at Alameda Santos, 1357, 6th floor, enrolled with the National Corporate Taxpayers Register under CNPJ No. 60.643.228/0001-21, hereinafter referred to as “VCP” or “Company”, 
 RECITALS 
 WHEREAS, the Company is a global player whose
strategy for growth is focused on the production of eucalyptus pulp; 

 WHEREAS, the Parties are shareholders of the Company and as of this date hold
direct and indirect interests therein, as provided in Exhibit 2.21; and 
 WHEREAS, the Company desires to have the shares issued by it traded in the share market special segment of
BM&FBovespa S.A. – Bolsa de Mercadorias e Futuros (“Bovespa”) known as Novo Mercado , thus adapting its Bylaws to the Novo Mercado Listing Regulations (“Adherence to the Novo Mercado”); 
 the Parties agree to execute this Shareholders Agreement according to the terms and for all effects of article 118 of Law No. 6404, of
December 15, 1976 (“Corporation Law”), subject to the clauses and conditions provided for below and freely accepted by them, and they also agree to comply with this Agreement and cause it to be complied with (“Agreement”).

 SECTION ONE – AGREEMENT COMPLIANCE 
 1.1. The Parties agree, directly and indirectly and irrevocably and irreversibly, to perform this Agreement and exercise the voting right attached to the Linked Shares of the Company according to this
Agreement. 
 1.2. Immediately after execution of this Agreement, any of the Parties may provide the Company with a copy for annotation in its
share register (or with the financial institution providing book-entry share services, as the case may be) and for making it known to its Managers, who shall observe and comply with the provisions agreed hereunder. 
 1.3. Whenever any Section of this Agreement is subject to voting agreement, the Company is hereby authorized and required to compute the votes of the
Parties, as agreed hereunder. 
 1.4. This Agreement shall be binding upon the Managers appointed by the Parties, and these Managers shall be
subject to all provision and conditions hereof. 
 SECTION TWO – COMPANY AND LINKED SHARES 
 2.1. The Company is a publicly-held corporation with shares traded in the Stock Exchange of São Paulo (Bovespa) and American Depository Receipts
(ADRs) in the NYSE, USA. 
 2.2. The capital stock of the Company as of this date is2 [—], divided into
[—] common shares and [—] preferred shares, distributed among the Parties as provided for in Exhibit 2.2. 
 2.3. This Agreement is binding upon the shares described in the exhibits mentioned in this Section held directly and indirectly by the Parties, and thus
such shares become subject to all provisions herein, including the exercise of voting right, hereinafter referred to simply as Linked Shares. 
 2.3.1. From the date of execution of this Agreement to the date of Adherence to the Novo Mercado, the linked shares of the Company directly or indirectly held by the Parties as listed in Exhibit 2.3.1
3 shall be attached to this Agreement; 
  

	1	Information to be provided upon conclusion of VCP capital increase and execution of this Agreement.

	2	Information to be provided upon conclusion of VCP capital increase and execution of this Agreement. 

	3	 Sum of (i) all shares issued by the Company owned by VID and (ii) the common shares and preferred shares issued by the Company owned by
BNDESPAR and necessary to ensure the Parties, at the time of Adherence to the Novo Mercado, a fifty point one per cent (50.1%) interest in the capital stock of the Company.

 2.3.2. From the date of Adherence to the Novo Mercado to the closing date of the
Restricted Period (as defined below), the linked shares of the Company directly or indirectly held by the Parties as listed in Exhibit 2.3.24 shall be attached to this Agreement. 
 2.3.3. After the Restricted Period (as defined below), the linked shares of the Company directly or indirectly held by the Parties as listed in Exhibit 2.3.35. 
 2.4. The Parties hereby represent and warrant that they are sole and legal owners and holders of Linked Shares. 
 2.5. In order to preserve the percentage of the Company’s capital attached to this Agreement, the shares of the Company that may be acquired by any of the Parties as result of stock dividends and/or
split of Linked Shares, or as result of exercise of preemptive or priority right to subscribe for shares of the Company or securities or convertible or exchangeable rights or conferring subscription rights, shall become automatically attached and
deemed as Linked Shares. 
 2.5.1. If, in future issuances carried out by the Company (“Future Issuance”), any of the Parties elect
not to exercise its preemptive or priority right to subscribe for shares of the Company or securities or rights convertible into shares or exchangeable for shares or conferring rights to subscribe for shares, such Party shall grant the other Party a
preemptive right to assign its respective preemptive or priority right at the price and in the conditions for negotiation of such rights in the market, in the number necessary for the assignee to be able to preserve a percentage of the capital stock
of the Company attached to this Agreement. 
 2.5.2. Without prejudice to item 2.5.1. above and without prejudice to the Parties’ right to
dispose of their shares not attached to this Agreement, the Parties agree, during the Restricted Period, to attach shares issued by the Company held by them at the time of the Future Issuance in a number sufficient to ensure, at the time of
Adherence to the Novo Mercado, a 50.1% percentage of the capital stock of the Company. 
 ARTICLE THREE – COMPANY’S MANAGEMENT 

 3.1. The Company shall be managed by a Board of Directors consisting of at least seven (7) and no more than twelve (12) members, and
an Executive Board. 
 3.2 As of the date of execution of this Agreement, BNDESPAR shall be entitled to appoint up to two (2) members of
the Board of Directors of the Company, and the other members shall be appointed by VID. 
  

	4	 Sum of (i) all shares issued by the Company owned by VID and (ii) the common shares issued by the Company owned by BNDESPAR and necessary to
ensure the Parties a fifty point one per cent (50.1%) interest in the capital stock of the Company.

	5	 Sum of (i) all shares issued by the Company owned by VID and (ii) the common shares issued by the Company owned by BNDESPAR subject to
VID’s call option. 

 3.2.1. After Adherence to the Novo Mercado and until the closing of the Restricted Period, as defined below,
BNDESPAR shall be entitled to appoint up to two (2) members of the Board of Directors of the Company, and the other members shall be appointed by VID. 
 3.2.2. After the closing of the Restricted Period, BNDESPAR shall be entitled to appoint one (1) member of the Board of Directors of the Company, and the other members shall be appointed by VID.

 3.2.3. These appointment rights are non-assignable, and thus they are not attached to Linked Shares that may be disposed of by the Parties to
any third party. 
 3.3. The Parties may participate in the management of the Company through representative(s) in the Board of Directors, and
each Party shall (i) appoint skilled professionals with school background and skills in management of business, knowledge on the best corporate governance practices, available time, strategic view consistent with the business purposes of the
Company and holding no interest in companies competing with the Company or without any prior history discrediting its repute, and (ii) cause their Director(s) thus appointed to comply with the provisions of this Agreement 
 3.4. The Parties shall exercise their voting right in such a way to ensure that the representatives appointed by the Parties be elected to the Board of
Directors of the Company, including accumulating their votes in the event of multiple voting, and the Parties also agree that in the event of removal, resignation and/or substitution of Director(s), all Parties shall follow the vote of the
Party(ies) that have appointed the removed, resigning or substitute Director(s). 
 3.5. Each Party shall cause the Director(s) elect appointed
by them to the Board of Directors or their respective alternates to attend the meetings of the Board of Directors and vote as a pool jointly with the elected representatives appointed by the other Party, with uniform vote as established in the
Previous Meeting. 
 3.6. Any Director, in the event of absence and disability of his/her alternate, shall be entitled to appoint, upon specific
appointment in writing, another Director to temporarily substitute him/her at a meeting of the Board of Directors of the Company and/or a Previous Meeting of the Board of Directors. The appointment referred to in this Section shall specify the
Director appointed as representative and provide voting instructions for the resolutions on the issues included in the agenda. 
 3.7. If the
absent or disable Director and/or his/her alternate does not appoint another Director to substitute him/her as provided in Section 3.6 above and his/her vote is required to reach a specific quorum for the resolution, a Director appointed by the
other Party shall be automatically appointed, pursuant to article 653 et seq. of the Brazilian Civil Code to represent said Director at the meeting of the Board of Directors and resolve on the issues under this Agreement. 
 SECTION FOUR – VOTING RIGHT 
 4.1. Each
Party agrees to attend the Shareholders Meetings of the Company and exercise the right to vote conferred upon each of them by their Linked Shares, directly or through its representatives legally appointed, voting on an uniform basis, as determined
at the Previous Meeting before the Shareholders Meeting referred to in Section 4.2 below, always in strict compliance with the provisions of this Agreement, in order to ensure more participation of the Parties in the resolutions of the
Shareholders Meetings of the Company. 

 4.2. The Parties agree to hold a previous meeting before (i) each shareholders meeting, and
(ii) the meetings of the Board of Directors of the Company whose agenda is to resolve on any of the matters listed in Section 4.3 below (“Previous Meeting”). 
 4.2.1. Unless otherwise provided for in Section 4.4 below, any and all resolution taken at a Previous Meeting shall be binding upon the Parties, whether they have attended the Previous Meeting or
not, and shall determine their vote at the respective shareholders meeting or the vote of their representatives at the respective meeting of the Board of Directors, regardless of any dissenting votes that may be counted at the Previous Meeting. To
that effect, each of the Parties hereby and according to the provisions of article 118, paragraph 7, of the Corporation Law, grant the other irrevocable and irreversible powers to represent it at each shareholders meeting, in such a way that the
absent parties be represented by the attending parties, casting their votes strictly according to the terms established in the minutes of the Previous Meeting as regards the matters in the agenda of the shareholders meeting concerned. 
 4.2.2. Unless otherwise provided for in this Agreement, the resolutions at the Previous Meeting shall be taken upon affirmative vote of simple majority of
all votes of the Parties, and each Party shall be entitled to the number of votes established in the table below: 
  

			
	 Parties
	  	 Number of Votes

	VID	  	3
	BNDESPAR	  	2

 4.3.2. The Previous Meeting shall be convened by any of the Parties, upon written notice, return
receipt requested, and it shall be held at least two (2) days before the date scheduled to the holding of the shareholders meeting or the meeting of the Board of Directors concerned, always subject to at least fifteen (15) days in advance
from the date of receipt of call notice to the date of the Previous Meeting, and the Parties shall attend it through their representatives (whether Directors or not), vested with powers to represent each of them and resolve on the matters discussed
thereat. Written notice shall not be required for a Previous Meeting at which all Parties attend. 
 4.2.4. In the event of absence of the
representative of any of the Parties at a Previous Meeting duly convened, the attending Party shall be entitled to convene a second Previous Meeting to be taken at least one (1) business day after the date scheduled for the shareholders meeting
or meeting of the Board of Directors concerned, with no need to observe the minimum period of notice, in order to resolve on the same matter. 
 If the Party that has not appeared at the first call does not appear at the second call, the other Party may take any and all resolution strictly within the scope of the agenda, and the resolution thus taken shall be binding upon the Party
that has not attended the Previous Meeting as well as upon the members of the Board of Directors who have been elected by such Party. 
 4.2.5.
If the Previous Meeting is not held at first call and/or at second call, or if no resolution is taken at a Previous Meeting, at first call and/or at second call, on the matters of the shareholders meeting, the Parties shall be required to resolve on
all or part of the items included in the agenda of the date of said shareholders meeting and give instructions to their representatives in the Board of Directors not to resolve on all or part of the items included the agenda of the date of the
respective meeting of the Board of Directors. 

 4.2.6. Minutes of each Previous Meeting shall be drawn up and signed by the attending Party(ies), with
instructions of prevailing vote to be given to the Parties and by the Parties to their respective representative(s) at the shareholders meeting and/or to the members of the Board of Directors appointed by them, who shall follow such instructions.

 4.3. During the term of this Agreement, the following matters may only be approved with the express consent of BNDESPAR at Previous Meeting:

 a) indebtedness incurred by the Company and its controlled companies that, as from the investment of the funds obtained from such
indebtedness transactions, result in a Net Debt/EBITDA Ratio (“Ratio”), considered on a consolidated basis, exceeding the following parameters: (i) for indebtedness incurred in 2009, eight (8) times the Ratio; (ii) for
indebtedness incurred in 2010, seven (7) times the Ratio; (iii) for indebtedness incurred in 2011, six (6) times the Ratio; and (iv) for indebtedness incurred in 2012, five (5) times the Ratio, and EBITDA shall be deemed as
the one accumulated in the last twelve (12) months from the most recent Quarterly Information Report (“Indebtedness Parameters”); 
 b) Company’s capital stock reduction; 
 c) proposal of extrajudicial reorganization plan, filing for judicial reorganization or
bankruptcy by the Company or its controlled companies; 
 d) liquidation or dissolution of the Company or any controlled company; 
 e) change in the preferences and advantages of the preferred shares or creation of a new and more favored class of shares; 
 f) reduction of compulsory dividend of the Company; 
 g) any proposal for distribution of dividends or interest on equity, to the extent that the reduction in Company’s cash results in increase in the Ratio for an amount exceeding the Indebtedness Parameters; 
 h) participation of the Company in groups of companies; 
 i) reduction in the level of listing with Bovespa or deregistration of the company as a publicly-held corporation; 
 j) any amendment
to the Bylaws of the Company before the Adherence to the Novo Mercado, including adjustment of said Bylaws to the rules of the Novo Mercado Listing Regulations, and the parties hereby agree that said adjustment shall be based on the current market
practices; 
 k) after Adherence to the Novo Mercado, amendment to the articles of the Bylaws regarding the business purpose of the Company,
Fiscal Council, diluted control and maintenance of the share base dilution; 

 l) conversion, consolidation, split or merger, including of shares, involving the Company and its controlled
companies, including swaps or payment in kind using shares, except for transactions resulting in integration of the business of the Company and of Aracruz Celulose S.A.; 
 m) capital increase, issuance of any security convertible into or exchangeable for share, including the fixing of issuance price of the shares to be issued and the price of the security convertible into
or exchangeable for Share; 
 n) any transaction between the Company and/or its controlled companies, on the one part, and any related parties,
on the other part, in an amount exceeding twenty million Reais (R$20,000,000.00) per year, except (i) inter-company agreements for supply of electric energy and provision of shared services (such as administrative, financial, logistics
and information technology services) up to an aggregate annual amount of eighty million Reais (R$80,000,000.00), (ii) financial investments in market conditions in an amount of up to two hundred million Reais (R$200,000,000.00)
and (iii) agreements to protect global cash flow exposure of up to one hundred million Reais (R$100,000,000.00); 
 o) disposal of
or encumbrance on permanent assets, by the Company, whose amount in a period of twelve (12) months have exceeded, individually or in the aggregate, five per cent (5%) of the total assets determined in the most recent Quarterly Information
Report (ITR); 
 p) any proposal for creation of reserves, provisions or for changing accounting criteria in an amount that, individually or in
the aggregate, exceeds ten per cent (10%) of the shareholders’ equity of the Company as determined in the most recent Quarterly Information Report (ITR); 
 q) the approval of the Company’s annual budget if this results in an increase in the Ratio above the Indebtedness Parameters; 
 r) execution of agreements of any nature in an individual amount exceeding five hundred million Reais (R$500,000,000.00), except the agreements provided for in the other provisions of this Section;

 s) capital investments not provided for in the business or budget plan approved by the Board of Directors of the Company, and so long as
their individual amount exceeds five hundred million Reais (R$500,000,000.00); 
 t) acquisition by the Company of relevant interest, as
defined by applicable law, not provided for in the business or budget plan approved by the Board of Directors of the Company, and so long as their individual amount exceeds five hundred million Reais (R$500,000,000.00); 
 u) creation of encumbrances or guarantees by the Company and/or its controlled companies to ensure performance of third party obligations, except
obligations of controlled companies; 
 v) acquisition of any equity interest in companies whose core business is not provided within the scope
of the business purpose of the Company or investments in business alien to the business purposes of the Company; and 
 w) reappraisal of assets
of the Company resulting in positive variation of the asset in an amount exceeding five hundred million Reais (R$500,000,000.00). 

 4.3.1. If BNDESPAR does not agree with any of the matters listed in Section 4.3 above, it shall justify
in writing, always in the best interest of the Company. 
 4.4. Notwithstanding the provisions above, the resolution taken at the Previous
Meeting shall not restrict the vote of BNDESPAR or of the members appointed by BNDESPAR to the Board of Directors in matters related to: 
 a)
rendering of accounts; 
 b) review, discussion and resolution on the Management Report and financial statements; and 
 c) modalities defined as abuse of power in article 117, paragraph 1, of the Corporation Law. 
 4.5. In respect of the resolution to determine the global compensation of the managers, VID agrees to adopt a compensation policy consistent with the practices adopted by similar companies. 
 SECTION FIVE – SHARE TRANSFER RESTRICTION 
 5.1. The Parties agree not to sell, promise to sell, exchange, donate or otherwise dispose of, transfer or encumber, directly or indirectly, in whole or in part, the Linked Shares for a period of thirty-six (36) months from the
execution of this Agreement (“Restriction Period”). 
 6. SECTION SIX – DISPOSAL AFTER THE RESTRICTION PERIOD 

6.1. After the expiration of the Restriction Period, if BNDESPAR elects to sell or assign shares issued by the Company owned by
BNDESPAR to a company engaged in the paper and/or pulp industry (“Strategic Investor”), in order to reduce its equity interest in the total capital of the Company to a percentage lower than [—
]6 per cent ([—]%), the consummation of such disposal shall be in compliance with BNDESPAR’s obligation to allow VID to exercise its preemptive right to acquire, at its sole discretion, all Linked Shares that
BNDESPAR offers to sell or assign (the “Offered Shares”), in the following conditions: 
 6.1.1. BNDESPAR shall send written notice to
VID, return receipt requested, informing the number of Offered Shares, the price and the payment conditions thereof, and the name and other data of the prospect buyer, if any, providing all elements that allow VID to properly assess the offering
(“Offering”). 
 6.1.2. VID shall, within forty-five (45) days from receipt of said notice, exercise its preemptive right to
acquire all Linked Shares offered by BNDESPAR under the Offering, provided that the Offering shall be deemed refused if no answer is given in writing within the established period of time. 
 6.1.3. If VID exercises its preemptive right, the transfer of the Linked Shares subject to VID’s preemptive right shall take effect sixty
(60) days after the expiration of the period provided for in Section 6.1.2 above. 
  

	6	 The percentage referred to herein shall be equal to the difference between fifty point one percent (50.1%) of VCP’s voting capital (at the
time of Adherence to the Novo Mercado) and the sum of the number of shares held by VID and those owned by BNDESPAR which are subject to VID’s call option. 

 6.1.4. If VID does not exercise its preemptive right within the period stipulated in Section 6.1.2,
BNDESPAR shall be entitled to sell the shares under the Offering in the following sixty (60) days in the same conditions as the Offering. If the sale is not made within this sixty (60)-day period, BNDESPAR shall follow again the procedure
provided for in this Section. 
 6.2. The provisions of this Section shall also apply to the assignment of rights to subscribe for new common
shares. 
 6.3. Noncompliance with the procedure provided for in this section as regards the preemptive right shall render the sale, transfer or
assignment of Linked Shares null and void. 
 6.4. If BNDESPAR intends to sell or assign shares of the Company owned by BNDESPAR to a Strategic
Investor, pursuant to Section 6.1., in a stock exchange or upon public offering of shares (“Public Auction’), the disposal of the shares shall be made subject to VID’s preemptive right to acquire such shares by the price
published in the Public Auction, as provided for in this Section. 
 6.4.1. In the Event of Public Auction VID shall exercise its preemptive
right within a five (5)-day period which shall only start after the price per share is defined. 
 6.4.2. BNDESPAR shall retain title to the
shares described in this Section until VID elects to exercise or not to exercise its preemptive right. 
 6.5. If VID elects not to exercise its
preemptive right provided for herein, the buyer(s) of the Offered Shares, pursuant to this Section Six, shall not be subject to this Agreement. 
 6.6. After the Restriction Period, if BNDESPAR elects to sell or assign shares issued by the Company owned by BNDESPAR on the BOVESPA trading session in order to reduce its equity interest in the total
capital of the Company to a percentage lower than [—]7 ([—] %), the preemptive right set forth in this Section Six shall not apply, and the consummation of said disposal, to the extent that it is in an amount
equal to or exceeding fifty million Reais (R$50,000,000.00) at every three (3)-month period, shall be made only upon BNDESPAR sending notice to VID, at least thirty (30) days before the date scheduled for commencement of the sale, of its
intent to dispose of the shares and specifying the number of shares to of be disposed of. 
 SECTION SEVEN – TAG-ALONG RIGHT

 7.1. After the Restriction Period and until the expiration of the twelve (12)-month period thereafter, but not after the Adherence to the
Novo Mercado, if VID elects to dispose of, directly or indirectly, through one or more transactions, all or part of the Linked Shares owned by VID and representing its controlling interest in the Company (“Disposal of Controlling
Interest”), BNDESPAR shall be entitled to dispose of, jointly with VID, all shares issued by the Company owned by it, other than (i) the shares held on January 19, 2009; (ii) the shares acquired from third parties after such
date; and (iii) the shares resulting from stock dividends, splits and exercise of preemptive rights granted by the shares referred to in items (i) and (ii) of this Section (“Tag-Along Right”). 
  

	7	 See Note to Section 6.1. 

 7.2. In the event of Section 7.1, VID shall send written notice to BNDESPAR and to the Company of the
intended disposal (“Notice of Sale”) and fixing a term of up to sixty (60) days after the Notice of Sale to the consummation of the disposal (“Date of Sale”). The Notice of Sale shall be accompanied by the draft of the
disposal agreement negotiated by them, and shall specify: the number of Linked Shares offered, the prices and payment conditions thereof, the name and other data of the prospect buyer, and a confirmation that the prospect buyer was informed of the
Tag-Along Right. 
 7.3. If BNDESPAR intends to exercise its Tag-Along Right, it shall send written notice to VID and to the prospect buyer
within up to thirty (30) days after receipt of the Notice of Sale, informing the number of shares issued by the Company that BNDESPAR owns and intends to dispose of. 
 7.4. The price per share to be paid by prospect buyer to BNDESPAR shall be equal to the price per share paid to VID, regardless of the type of share. The disposal conditions shall also be the same for VID
and BNDESPAR. 
 7.5. If the prospect buyer refuses to complete the purchase of all shares that BNDESPAR has proposed to dispose of upon
exercising its Tag-Along Right, VID shall be prevented from selling any of its Linked Shares representing controlling interest in the Company to the prospect buyer. 
 7.6. If BNDESPAR elects not to exercise its Tag-Along Right, VID shall be entitled, up to the Date of Sale, to dispose of its Linked Shares at the same price and in the same terms and conditions specified
in the Notice of Sale. If the disposal is not consummated up to the Date of Sale and in the offered conditions, the procedures pertaining to the Tag-Along Right as provided for in this Agreement shall be followed again. 
 SECTION EIGHT – SPECIFIC PERFORMANCE 
 8.1. Subject to the provisions of this Agreement, the Parties shall be entitled to request the Chairman of the Shareholders Meeting of the Company to state the invalidity of vote cast against or in conflict with any provision of this
Agreement. The members of the Board of Directors elected by appointment of the Parties shall have the same right as regards resolutions subject to the Board of Directors on any matter provided for in this Agreement. 
 SECTION NINE – TERM 
 9.1. The
provisions of this Agreement shall become effective on the date of execution hereof and shall be valid for a period of five (5) years. 
 SECTION TEN – MISCELLANEOUS 
 10.1. This Agreement shall be filed with the Company at its principal place of business, and
the Company agrees to strictly comply with all the terms, provisions and conditions hereof and signs it as intervening party. 
 10.2. No vote
cast by the Parties in breach of the provisions of this Agreement shall be accepted or computed at the Shareholders Meetings of the Company. 

 10.3. The Company shall include in the agreement executed with the financial institution acting as
depositary of book-entry shares that the common shares owned by the Parties are attached to this Agreement, and shall include in its records the following statement: “The common shares issued by VCP and owned by VID and BNDESPAR are attached
to a shareholders agreement executed on                     , 2009, which is duly filed with VCP at its principal place of business.”

 10.4. The Company shall provide on a semi-annually basis, up to June 10 and December 10 of each year, the financial statements of
April 30 and October 31, accompanied by a Comfort Letter regarding such statements, based in audit proceedings and issued by an independent auditors company, as well as the capital stock ownership of the Company, stressing BNDESPAR’s
equity interest as from the date on which BNDESPAR becomes holder of a substantial equity interest in the Company, meaning an equity interest (i) exceeding ten per cent (10%) of the capital stock with influence on the Management, and
(ii) exceeding twenty per cent (20%) of the voting capital, and confidentiality shall be kept as regards such information. 
 10.5.
The Company shall promptly notify the Parties of any acts, facts or omissions that may result in breach of this Agreement, as well as adopt any measures that may be required by superseding law to the effect or validity hereof. 
 10.6. The Parties shall be widely entitled to be provided with information and to inspect the business, books and accounting of the Company, which shall
promptly fulfill any requests for information or clarifications made by the Parties. 
 10.7. In the event of breach by any Party hereto of any
of its obligations under this Agreement, the other Parties shall be entitled to file legal action to enforce the specific performance hereof, pursuant to article 118 of the Corporation Law, and according to the articles 461 et. seq. of the
Brazilian Code of Civil Procedure. 
 10.8. On the best terms of the law, the Parties acknowledge that, except as expressly provided for in this
Agreement: (i) the failure to exercise, the extension of a period, the forbearance, or the delay to exercise any right to which they may be entitled under this Agreement or by law shall not operate as a novation or waiver of such right nor
affect the exercise thereof; (ii) the partial exercise of such right shall not prevent them from exercising the remaining of their rights or from exercising any other right; (iii) the waiver of any right shall only be valid if granted in
writing; (iv) the waiver of a right shall be limited to that right and shall not be deemed as a waiver of any other right under this Investment Agreement. 
 10.9. All the notices and notifications or any other kind of communication to be delivered pursuant to this Investment Agreement shall be addressed as follows, at all times in writing and with return
receipt requested: 
 To BNDESPAR: 
 Av. República do Chile, 100 
 Rio de Janeiro, RJ, Brasil 
 Fax: 21-2220-2907 
 At: Superintendente da Área de Mercados Capitais – AMC 

 To VID: 
 Rua Amauri, 255 – 13o andar – Conjunto A 
 São Paulo, SP, Brasil 
 Fax: 11 3079-9345 
 Attn: Mr. Raul Calfat

 With a copy to: 
 Rua Amauri, 255
– 13o andar – Conjunto A 
 São Paulo, SP, Brasil 
 Fax: 11 3079-9345 
 At: Mr. Alexandre D’Ambrósio 
 To VCP: 
 Alameda Santos, 1357 – 8o andar

 São Paulo, SP, Brasil 
 Fax:
11 2138-4066 
 At: Mr. José Luciano Duarte Penido 
 With a copy to: 
 Rua Amauri, 255 – 13o andar – Conjunto A 
 São Paulo, SP, Brasil 
 Fax: 11 3079-9345

 At: Mr. Alexandre D’Ambrósio 
 10.9.1. Notices and notifications or any other form of communication shall be deemed delivered on the date included in the return receipt, on the date of acknowledgment of receipt of the fax message or on
the date of formalization of the judicial or extrajudicial notification. 
 10.9.2. Copies of any and all correspondence exchanged between the
Parties and/or VCP on the matters included therein shall be sent to the other Parties and/or to VCP as applicable. 
 10.9.3. Any changes in the
addresses above shall be immediately communicated to the Parties and/or to VCP, and in the absence of said communication, the correspondence sent to the old address shall be deemed correctly sent and received for all factual and legal purposes.

 10.10. This Agreement is executed irrevocably and irreversibly, except in the events set forth herein, and it is binding upon the Parties and
their respective successors on any account and shall not be subject to assignment or transfer, whether in whole or in part, unless with prior written consent of the other Party. 
 10.11. If any term or provision stipulated herein is deemed null, illegal, unenforceable or inapplicable by virtue of a legal provision or a final judicial decision, all the other conditions and
provisions herein shall remain fully effective, and the Parties shall negotiate in good faith an amendment hereto aimed at reestablishing the original scope of the Parties to the best extent possible. 
 10.12. The Company executes this Agreement and represents to be aware of its provisions, and, for the purposes of article 118 of the Corporation Law, agrees
to comply with all provisions hereof. 

 10.13. The provisions of this Agreement shall prevail over any provisions of the Bylaws of the Company that
may regulate in a different way any matter under this Agreement, and thus all said matters shall be construed and governed according to the rules of this Agreement. 
 10.14. As from the date of execution of this Agreement, all amounts hereunder shall be adjusted at every twelve (12)-month period by the Extended Consumer Price Index (IPC-A) applicable for the period.

 10.15. This Agreement shall be governed by, and construed according to the laws of the Federative Republic of Brazil. 
 10.16. Any act in breach of any of the rules provided for in this Agreement shall be deemed null and void before the Company. 
 10.17. The Parties agree that any dispute arising out of this Agreement which cannot be amicably settled by the Parties within a period of thirty
(30) calendar days not subject to extension shall be resolved by the BOVESPA’s Market Arbitration Chamber (the “Arbitration Chamber”) pursuant to its Regulations (except for the periods set forth therein, which shall be
considered tripled), and this Section 10 shall be deemed an arbitration clause for the purposes of the provisions of paragraph 1 of article 4 of Law 9307/96. The conduction and proper development of the arbitration proceedings shall be equally
incumbent upon the Arbitration Chamber. 
 10.17.1. The Arbitral Tribunal shall consist of three (3) arbitrators, one of which shall be
appointed by the Party intending to commence arbitration and the other arbitrator by the other Party, and a third arbitrator, who shall serve as President of the Arbitral Tribunal, shall be appointed by the arbitrators selected by the Parties.
Should any of the Parties fail to appoint an arbitrator and or should the arbitrators appointed fail to reach a consensus as to the third arbitrator, the President of the Arbitration Chamber shall appoint the third arbitrator as soon as possible.

 10.17.2. The Parties acknowledge that any arbitration award, decision or determination shall be final and binding and shall constitute a
judicial execution instrument binding on the Parties and their successors, who agree to comply with the provisions of the arbitration award, regardless of judicial execution. 
 10.17.3. Notwithstanding the foregoing, each Party remains entitled (a) to obtain any “provisional measures” that are necessary before commencement of the arbitration proceedings and such
measure shall not be construed as a waiver of the arbitration proceedings by the Parties; (b) to enforce any arbitration decision, including the final arbitration award; and (c) to guarantee the formation of the arbitral tribunal. For such
purpose, the Parties hereby elect the courts of the Judicial District of Rio de Janeiro, State of Rio de Janeiro, waiving any other court however privileged it may be. 
 IN WITNESS WHEREOF, the Parties and VCP execute this Agreement in three (3) counterparts of equal contents and form before the undersigned witnesses. 
 São Paulo, [—] [—
], 20098. 
  

	8	 The date of execution of this Agreement shall be the date on which is VCP’s capital increase is completed. 

 (signature page of the Shareholders Agreement of Votorantim Celulose e Papel S.A.)

 BNDESPAR: 
  

			
	  

	Name:	 	
	Title:	 	

 VID: 
  

			
	  

	Name:	 	
	Title:	 	

 VCP: 
  

			
	  

	Name:	 	
	Title:	 	

 Witnesses: 
  

			
	1.	 	  

	Name:
	ID RG:
	Individual Taxpayer ID (CPF/MF):

  

			
	2.	 	  

	Name:
	ID RG:
	Individual Taxpayer ID (CPF/MF):

 The pages of this Agreement were initialed by: 
 (initial) 
 Mota Fernandes Rocha Advogados

 (initial) 
 Alice Ferreira Lopes

 Manager 
 AMC/DEMEC/GEJUR1

 (initial) 
 Bruno Lima dos Santos

 Manager 
 AMC/DEINV/GEJUR3Exchange Agreement, dated September 19, 2006

 Exhibit 10.3 
 Execution Copy 
  
  
 EXCHANGE
AGREEMENT 
 between 
 VOTORANTIM CELULOSE E PAPEL S.A. 
 and 
 INTERNATIONAL PAPER INVESTMENTS (HOLLAND) B.V. 
 on 
 September 19, 2006 
  
  

 EXCHANGE AGREEMENT 
 By this EXCHANGE AGREEMENT (this “Agreement”) between, on one side, VOTORANTIM CELULOSE E
PAPEL S.A., a company (sociedade por ações) organized under the laws of the Federative Republic of Brazil, with head offices in the City of São Paulo, State of São Paulo, at Al. Santos, 1357, 6th floor, enrolled with the Legal Entities Taxpayers’ Registry
(CNPJ/MF) under No. 60.643.228/0001-21, herein represented in accordance with its bylaws (“VCP”), and, on the other side, INTERNATIONAL PAPER INVESTMENTS (HOLLAND) B.V., a company organized under the laws of The
Netherlands, with head offices at Rokin 55, 1012 KK, in the city of Amsterdam, enrolled with the Legal Entities Taxpayers’ Registry (CNPJ/MF) under No 05.501.662/0001-69, herein represented in accordance with its corporate documents
(“IP”). 
 W I T N E S S E T H: 
 WHEREAS, IP and/or its Affiliates is the legal holder and registered owner of an eucalyptus plantation in the Brazilian state of Mato Grosso do Sul (the “Forest”) and other existing assets
related to the construction of a pulp mill adjacent to the Forest, which are part of the Chamflora Assets (as defined below); 
 WHEREAS, VCP is the legal holder and registered owner of an eucalyptus plantation and an integrated pulp and printing and writing paper plant in the city of Luiz Antônio, State of São Paulo and related assets, including the LA
Establishment (as defined below); 
 WHEREAS, VCP wishes to own, operate, develop, exploit and further improve the Chamflora
Assets and IP wishes to own, operate, develop, exploit and further improve the LA Establishment; 
 WHEREAS, in furtherance of
the desire expressed in the preceding whereas clause, IP and VCP wish to exchange the Chamflora Assets for the LA Assets (as defined below); 
 WHEREAS, as an inducement for IP to agree to this exchange of assets, VCP agrees to segregate the LA Assets into a newly-formed, operational company; 
 WHEREAS, as an inducement for VCP to agree to this exchange of assets, IP will transfer certain remaining Chamflora Assets to Chamflora;

 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
set forth herein, the Parties hereto agree as follows: 
 ARTICLE 1 
 DEFINITIONS 
 SECTION
1.01. Definitions. (a) The following terms, as used herein, have the following meanings: 
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with such Person; 
 “Agreement” means this Exchange Agreement and the schedules attached hereto; 
 “AMCHAM CA” means the Centro de Arbitragem of the Câmara Americana de Comércio, the arbitration
chamber of the American Chamber of Commerce; 
 “Biotechnology Property Rights” means specific germplasm
(eucalyptus and pine), such as commercial clones, test clones, clone banks, commercial plantations from seed, progeny trials and seed production areas, and research practices currently applied specifically to each of the LA Establishment and
Chamflora, as the case may be; and know-how pertaining to the manufacturing and production processes and techniques and research and development information for the eucalyptus and pine plantings (commercial and experimental) as they are currently
grown in each of the LA Establishment and Chamflora, as the case may be, plantations as they are currently grown in each of the LA Establishment and Chamflora, as the case may be, proprietary process. It does not include corporate germplasms
and research projects which are not exclusive to Chamflora and the LA Establishment; 
 “Brazilian GAAP” means
generally accepted accounting principles in Brazil; 
 “Business Day” means any day other than a Saturday,
Sunday, or other day on which commercial banks in the City of São Paulo, State of São Paulo are authorized by law to close; 
 “CADE” means Conselho Administrativo de Defesa Econômica, the Brazilian antitrust authority; 
 “Chamflora” means Chamflora - Três Lagoas Agroflorestal Ltda., a company (sociedade limitada) organized under the laws of the Federative Republic of Brazil, with head offices
in the City of Três Lagoas, State of Mato Grosso do Sul, at Rodovia MS 395, Km 20, enrolled with the Legal Entities Taxpayers’ Registry (CNPJ/MF) under No. 36.785.418/0001-07; 
  

 2 

 “Chamflora Assets” means the Forest and the Chamflora Related Assets, as
described in Schedule 1.01(a) hereto; 
 “Chamflora Biotechnology Property Rights” has the
meaning set forth in Section 4.15 of this Agreement; 
 “Chamflora Financial Statements” has the meaning
set forth in Section 4.07 of this Agreement; 
 “Chamflora Contracts” means the agreements to be entered
into by Chamflora and existing on the Closing Date for the construction of the Project Mill and the acquisition of additional land to develop eucalyptus plantations; 
 “Chamflora Operating Systems” has the meaning set forth in Section 4.14 of this Agreement; 
 “Chamflora Permits” has the meaning set forth in Section 4.12 of this Agreement; 
 “Chamflora Related Assets” means the real estate properties in connection with the Forest, the rights under the Chamflora Contracts, environmental licenses and applications, tax benefit
agreements, project designs and engineering, Chamflora Intellectual Property Rights, Chamflora Operating Systems, and Chamflora Biotechnology Rights and all other rights and assets related to the Project Mill, including all real estate property
registrations (“matrículas”) and total area, quality and age of trees, and all other existing assets related to the Forest; 
 “Chamflora Reorganization” means the steps necessary to transfer to Chamflora the Chamflora Assets in a way that, on or prior to the Closing Date, Chamflora shall be the legal holder and
registered owner of the Chamflora Assets; 
 “Chamflora’s Quotas” means 100% of the quotas of the capital
stock of Chamflora; 
 “Claim” has the meaning set forth in Section 9.07 of this Agreement; 
 “Closing” has the meaning set forth in Section 3.01 of this Agreement; 
  

 3 

 “Closing Date” has the meaning set forth in Section 3.01 of this
Agreement; 
 “Confidential Information” has the meaning set forth in Section 7.02 of this Agreement;

 “Control” means, in respect of any Person, the possession, directly or indirectly, of the power to
permanently direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by voting agreement, contract or otherwise, and the terms “Controlled” and
“Controlling” will be construed accordingly; 
 “Environmental Laws” means, as in effect on
the date hereof, all laws, rules, regulations, judgments, injunctions, orders or decrees relating to pollution or protection of the environment, including, without limitation, laws relating to the release or threatened release of Waste and Discharge
into the indoor or outdoor environment (including, without limitation, ambient air, surface water, groundwater, land, surface and sub-surface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage,
release, transport or handling of Waste and Discharge; 
 “Environmental Permits” has the meaning set forth in
Section 4.18 of this Agreement; 
 “Forest” means Chamflora’s eucalyptus plantation in the Brazilian
state of Mato Grosso do Sul; 
 “Governmental Authority” means any government, governmental entity, regulatory
authority, department, commission, board, agency or instrumentality, any recognized stock exchange and any court, arbitrator, tribunal, whether foreign or domestic with jurisdiction over the Parties; 
 “Insurance Policies” has the meaning set forth in Section 5.19 of this Agreement; 
 “LA Intellectual Property Rights” means, in relation to the LA Establishment all (i) inventions, whether or not
patentable, including, without limitation, the paper packaging equipment and related technology, (ii) copyrights (whether or not registered) and registrations and applications for registration thereof, including all derivative works, moral
rights, renewals, extensions, reversions or restorations associated with such copyrights, regardless of the medium of fixation or means of expression; and (iii) computer software, databases, technology, and related information to the
maintenance of the activity of the LA Establishment, formulae, algorithms, models, user interfaces, inventions, source codes, object codes, methodologies and all related information; 
 “IP” has the meaning set forth in the preamble of this Agreement; 
  

 4 

 “IP Indemnified Parties” has the meaning set forth in Section 9.02 of
this Agreement; 
 “IP Paper Machine” means a paper machine of approximately 200,000 to 250,000 tonnes per
year, adjacent and integrated with the Project Mill, to be built by IP, at IP’s option and cost; 
 “LA
Assets” means, except as otherwise provided for herein, the assets, rights and obligations pertaining to the LA Establishment, including the eucalyptus plantations, the industrial facilities, together with its fixed and operating assets,
the real estate properties in connection therewith, environmental licenses and applications, accounts receivables, accounts payables, inventories of raw materials and inventory in process, finished goods (excluding any branded products), LA
Operating Systems, LA Biotechnology Property Rights and other current assets and current liabilities related to the LA Establishment, but excluding the LA Excluded Assets; 
 “LA Biotechnology Property Rights” has the meaning set forth in Section 5.15 of this Agreement;

 “LA Company” means the company to be organized by VCP under the laws of the Federative Republic of Brazil
and that, on the Closing Date, shall be the legal holder and registered owner of the LA Assets; 
 “LA Company Financial
Information” has the meaning set forth in Section 5.07; 
 “LA Company Quotas” means 100% of the
quotas of the capital stock of the LA Company; 
 “LA Distributors” has the meaning set forth in
Section 6.07(b) of this Agreement; 
 “LA Employees” has the meaning set forth in Section 5.17 of
this Agreement; 
 “LA Environmental Permits” has the meaning set forth in Section 5.18 of this Agreement;

 “LA Excluded Assets” means (i) the sales representatives/agents of the LA Establishment, (ii) KSR,
VCP’s distribution company, (iii) all domestic and international brands, including, but not limited to, the brands “Copimax”, “Printmax”, “Mascote” and “Regatta”, (iv) VCP’s international
offices, and (v) the assets that are not to be transferred as described in Section 5.21; 
  

 5 

 “LA Operating Systems” has the meaning set forth in Section 5.14 of
this Agreement; 
 “LA Permits” has the meaning set forth in Section 5.12 of this Agreement; 

“LA Reorganization” means the steps necessary in order to convey the LA Assets into the LA Company on or prior to the
Closing Date; 
 “Lien” means any mortgage, lien, pledge, charge, security interest, encumbrance, title defect,
objections, rights of first refusal, options or other restriction of any kind, or any other right in favor of or claim by, any third party of whatsoever nature; 
 “Losses” has the meaning set forth in Section 9.01 of this Agreement; 
 “LA Establishment” means the establishment currently owned by VCP containing the eucalyptus plantation and the integrated pulp and printing and writing paper plant in the city of Luiz
Antônio, State of São Paulo and related assets, such as the industrial facilities, including its fixed and operating assets, real estate properties in connection therewith, environmental licenses and applications and other assets
further described in Schedule 5.21 attached hereto, as well as the LA Operating Systems, LA Intellectual Property Rights and LA Biotechnology Property Rights; 
 “Option Paper Machine” has the meaning set forth in Section 2.04(b) of this Agreement; 
 “Paper Machine Agreements” has the meaning set forth in Section 2.04(a) of this Agreement; 
 “Paper Machine Notice” has the meaning set forth in Section 2.04(a) of this Agreement; 
 “Parties” means VCP and IP; and “Party” means any of them; 
 “Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or
an agency or instrumentality thereof; 
 “Project Mill” means a pulp mill to be built in the region of the City
of Três Lagoas, in the State of Mato Grosso do Sul, with an annual capacity of approximately 1,000,000 tonnes, pursuant to the existing project, as well as any future assets and rights under agreements related to its construction; 

“Quotas” means Chamflora Quotas and the LA Company Quotas; 
  

 6 

 “Representative” means, with respect to a Person, its respective officers,
directors, advisors or representatives; 
 “Taxes” means all taxes, charges, fees, levies or other assessments
imposed by any taxing authority, including, without limitation, income, gross receipts, sales, use, goods and services, capital transfer, profits, license, withholding, payroll, employment, employer health, social contributions, social security,
excise, severance, occupation, property, or other taxes, customs duties, fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts, including any amounts payable as a
result of the application of monetary correction or any other similar factor imposed by any taxing authority; 
 “Tax
Returns” means any report, return, document, declaration, schedule, or any other information or filing required to be supplied, including by electronic means or otherwise, to any Governmental Authority or jurisdiction with respect to Taxes
including, without limitation, any amendments thereto; 
 “US$” means the United States dollar; 
 “VCP” means Votorantim Celulose e Papel S.A.; 
 “VCP Indemnified Parties” has the meaning set forth in Section 9.01 of this Agreement; 
 “Waste and Discharge” means petroleum and petroleum products, by-products or breakdown products, radioactive materials,
asbestos-containing materials, and any other chemicals, materials or substances regulated as toxic or hazardous or as pollutant, contaminant, discharge, emission or waste under any applicable Environmental Laws; 
 ARTICLE 2 
 CORPORATE REORGANIZATIONS, EXCHANGE OF QUOTAS AND OTHER TRANSACTIONS 
 SECTION 2.01. Corporate Reorganizations. As an inducement for IP to exchange the Chamflora Assets for the LA
Assets, VCP hereby agrees to carry out a corporate reorganization in order to convey the LA Assets into the newly-formed LA Company until the Closing Date. IP, in turn, shall carry out a corporate reorganization in order to have only and all of
the Chamflora Assets in Chamflora on the Closing Date. 
  

 7 

 SECTION 2.02 Exchange of Quotas. On the terms and subject to the
conditions set forth in this Agreement, IP agrees to exchange with VCP, on the Closing Date, all the title and interest in the Chamflora Quotas, free and clear of any and all Liens, for all the title and interest in the LA Company Quotas, free and
clear of any and all Liens, provided that Chamflora shall be the owner of the Chamflora Assets and the LA Company shall be the owner of the LA Assets, pursuant to the terms and conditions of this agreement. 
 SECTION 2.03. No consideration. The Parties agree that the exchange of Quotas provided in Section 2.02 above
will occur without the payment of any consideration from one Party to the other. 
 SECTION 2.04. IP Paper
Machine. (a) If IP informs VCP, in writing, within 45 (forty-five) days as of the date hereof, of its decision to build the IP Paper Machine (the “Paper Machine Notice”), including the production capacity and technical
specifications thereof, then, as of the date of the Paper Machine Notice: (i) the Slush Pulp Supply Agreement and the Utilities Supply Agreement, separately executed between IP and VCP on the date hereof, shall enter into full force and effect
and (ii) the other ancillary agreements, which terms and conditions are attached as exhibits to the Slush Pulp Supply Agreement and the Utilities Supply Agreement shall be executed and shall enter into full force and effect (all such agreements
jointly referred to as the “Paper Machine Agreements”). 
 (b) IP shall also have an option to build a second
paper machine of 200,000 to 250,000 tonnes per year (the “Option Paper Machine”), also at IP’s option and cost, upon delivery of written notice within 3 (three) years from the Closing Date, provided, however, that IP shall
deliver such notice to VCP at least 24 (twenty four) months prior to the start-up date of the Option Paper Machine, unless otherwise agreed by the Parties, that will also be supplied by the Project Mill under similar terms and conditions as those
contained in the Paper Machine Agreements. 
 (c) In case IP provides the Paper Machine Notice to VCP regarding its intention to
build the IP Paper Machine, then the real estate property described in Schedule 2.04(c) attached hereto, where the IP Paper Machine, the Option Paper Machine and IP offices shall be constructed by IP, and the related access roads, shall not be part
of the Chamflora Assets. 
 (d) In case IP fails to provide VCP with the Paper Machine Notice, then VCP shall be released from
any obligation related to the IP Paper Machine or to the Option Paper Machine. 
  

 8 

 ARTICLE 3 
 CLOSING 
 SECTION
3.01. Closing. Subject to the terms and conditions set forth herein, the exchange of the Quotas (the “Closing”) shall take place at the offices of Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga, at Alameda Joaquim
Eugênio de Lima, 447, in the City of São Paulo, State of São Paulo, immediately after the fulfillment and/or waiver of all conditions to closing set forth in Article 8 below, provided that Closing shall occur, no later than
February 1, 2007, unless another date or place is agreed in writing by the Parties (the day on which the Closing occurs shall be for purposes of this Agreement the “Closing Date”). 
 SECTION 3.02. Deliveries at Closing. At the Closing: 
 (a) IP shall deliver, or cause any of its Affiliates to deliver, to VCP, the duly signed Amendment to the Articles of Association of
Chamflora providing for the transfer of Chamflora Quotas to VCP; 
 (b) VCP shall deliver, or cause any of its Affiliates to
deliver, to IP, the duly signed Amendment to the Articles of Association of the LA Company providing for the transfer of the LA Company Quotas to IP; 
 (c) IP shall deliver, or cause any of its Affiliates to deliver, to VCP, with respect to Chamflora, each as valid as of the Closing Date, the Clearance Certificate of Federal Taxes and Contributions and
the Overdue Taxes Clearance Certificate issued by the Federal Revenue Office (Certidão de Quitação de Tributos e Contribuições Federais e de Dívida Ativa), the Debt Clearance Certificate issued by the
National Institute of Social Security (Certidão Negativa de Débito do Instituto Nacional de Seguridade Social - INSS), the Certificate of Good Standing towards the Employment Guarantee Fund (Certidão de Regularidade de
Situação do Fundo de Garantia por Tempo de Serviço – FGTS) and the Clearance Certificate from the Office of Attorney General of the National Treasury (Certidão Negativa de Inscrição de
Dívida Ativa da União); 
 (d) VCP shall deliver, or cause any of its Affiliates to deliver, to IP, with
respect to the LA Company, each as valid as of the Closing Date, the Clearance Certificate of Federal Taxes and Contributions and the Overdue Taxes Clearance Certificate issued by the Federal Revenue Office (Certidão de
Quitação de Tributos e Contribuições Federais e de Dívida Ativa), the Debt Clearance Certificate issued by the National Institute of Social Security (Certidão Negativa de Débito do Instituto
Nacional de Seguridade Social - INSS), the Certificate of Good Standing towards the Employment Guarantee Fund (Certidão de Regularidade de Situação do Fundo de Garantia por Tempo de Serviço – FGTS) and the
Clearance Certificate from the Office of Attorney General of the National Treasury (Certidão Negativa de Inscrição de Dívida Ativa da União); 
  

 9 

 (e) IP shall deliver, or cause any of its Affiliates to deliver, to VCP, the resignations
(effective as of the Closing Date) of all of the officers of Chamflora; 
 (f) VCP shall deliver, or cause any of its Affiliates
to deliver, to IP, the resignations (effective as of the Closing Date) of all of the officers of the LA Company; 
 (g) VCP
shall deliver to LA Company and LA Company shall deliver to VCP duly signed counterparts of the Wet Lap Pulp Supply Agreement (as defined in Section 8.02 below), to which IP hereby expressly consents. 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES WITH RESPECT TO 
 CHAMFLORA, THE CHAMFLORA ASSETS AND IP 
 IP represents and warrants to VCP that each of the following representations and warranties will be on the Closing Date, true and correct and in full force and effect: 
 SECTION 4.01. Existence and Power. Chamflora is a company duly organized, validly existing and in good
standing under the laws of the Federative Republic of Brazil and has all material corporate powers, governmental licenses, authorizations, permits, consents and approvals required to own the Chamflora Assets. On the Closing Date, Chamflora will
be duly organized, validly existing and in good standing under the laws of the Federative Republic of Brazil and will have all material corporate powers, governmental licenses, authorizations, permits, consents and approvals required to own the
Chamflora Assets. 
 SECTION 4.02. Authorization, Binding Effect. The execution, delivery and
performance by IP of this Agreement and the consummation of the transactions contemplated hereby are within IP’s powers. IP is duly authorized by all necessary corporate action to execute, deliver, perform and consummate the transactions
contemplated in this Agreement. This Agreement constitutes a valid and binding agreement upon IP and is enforceable against IP in accordance with its terms. 
 SECTION 4.03. Governmental Authorization. The execution, delivery and performance by IP of this Agreement and the consummation of the transactions contemplated hereby
require no action, approval, consent or declaration by or in respect of, notice or filing with, any Governmental Authority, agency or official other than the filing with CADE. 
  

 10 

 SECTION 4.04. Noncontravention. The execution, delivery and
performance by IP of this Agreement and the consummation of the transactions contemplated herein do not and will not (i) violate the organizational documents or bylaws of IP, (ii) assuming any filing required by the antitrust authorities
is properly made, violate any material applicable law, rule, regulation, judgment, injunction, order or decree, (iii) require any consent or other action by any Person, constitute a default, or give rise to any right of termination,
cancellation, vesting or acceleration of any right or obligation of IP or Chamflora, or to a loss of any benefit to which Chamflora is entitled under any provision of any law, agreement or other instrument, or (iv) result in the creation or
imposition of any Lien on any Chamflora Asset or in the Chamflora Quotas. 
 SECTION 4.05. Capital Stock
and Ownership of Shares. On the Closing Date, all the quotas of the capital stock of Chamflora shall be validly issued, totally subscribed and paid in, non-assessable and directly or indirectly owned by IP, and there will be no
(i) other outstanding quotas issued by Chamflora or other ownership interests of Chamflora, or (ii) options or other rights to acquire from Chamflora or from IP or other obligation of Chamflora to issue any quotas of capital stock or other
ownership interests of Chamflora. On the Closing Date, there will be no outstanding obligations of Chamflora to repurchase, redeem or otherwise acquire any quotas of capital stock of Chamflora. 
 SECTION 4.06. Subsidiaries. IP, directly or indirectly, owns 100% of Chamflora’s capital stock and
Chamflora does not own any securities or other ownership interest in any Person, or any other investment in any Person, whether by means of a share purchase, capital contribution or otherwise. On the Closing Date, Chamflora shall not own any
securities or other ownership interest in any Person, or any other investment in any Person, whether by means of a share purchase, capital contribution or otherwise. 
 SECTION 4.07. Financial Statements. Schedule 4.07 attached hereto contains a true copy of the unaudited financial statements of Chamflora for the fiscal year ended on
December 31, 2005, and the same documents dated as of May 31, 2006 (the “Chamflora Financial Statements”), which have been prepared in accordance with the Brazilian GAAP and consistent with the companies’ past
practices. The Chamflora Financial Statements are true, correct and complete, can be reconciled with the books and records of Chamflora in all material aspects and fairly reflect the financial situation of Chamflora on such dates, as well as
the results of Chamflora’s activities in the relevant time periods, no transactions out of the ordinary course of business having occurred. 
 SECTION 4.08. Chamflora Assets. (a) Chamflora has good and marketable, legitimate title, free and clear of any Liens, or, in the case of leased property and assets,
has valid leasehold interests, in all Chamflora Assets. None of such Chamflora Assets is subject to any Lien, except for Liens created by operation of law (“reserva legal” and “área de preservação
permanente”). 
  

 11 

 (b) The properties and assets owned, leased or subleased or licensed to Chamflora, or
which it otherwise has the right to use, constitute all of the properties and assets used or held for use in connection with the operation of Chamflora and are adequate to conduct such operation as currently conducted. All of the Chamflora
properties and assets are in good working condition and repair, ordinary wear and tear excepted, and have been maintained in a manner consistent with generally accepted industry practice; 
 (c) The Chamflora Contracts are and shall be valid and enforceable in accordance with their terms. 
 SECTION 4.09. Absence of Certain Changes. As from May 31, 2006, IP has conducted the business of
Chamflora in the ordinary and usual course of business. In addition, as from May 31, 2006 up to the date hereof, there has been: 
 (i) no physical damage, destruction, loss or abandonment of any material asset or property of Chamflora; 
 (ii) except as listed in Schedule 4.09(ii) hereto attached, no acquisition, sale, assignment, transfer, lease, sublease, license or other disposal of any material asset or property of Chamflora;

 (iii) no material change in the management practices of Chamflora; 
 (iv) no creation of any Liens on all or any portion of any material asset or property of Chamflora; 
 (v) no material amendment, modification, alteration, failure to renew or termination of any material contract of Chamflora; 

(vi) no waiver of any material rights of Chamflora or any cancellation of any material claims, debts or accounts receivable owing to
Chamflora, other than in the ordinary course of business; 
 (vii) no entering into any form of financial agreement related
Chamflora; 
 (viii) no revaluation of any tangible or intangible assets of Chamflora; 
 (ix) no litigation, which has had or could have a material adverse effect on Chamflora or its financial condition; 
 (x) no material loss; 
 (xi) no material adverse change in Chamflora’s financial condition, business, operations or prospects; and 
 (xii) no commitment by IP to do any of the foregoing. 
  

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 SECTION 4.10. Contracts. The agreements related to the
Chamflora Assets presently in force, which are listed in Schedule 4.10 attached hereto, were, and the Chamflora Contracts shall have been, on the Closing Date, entered into and executed in the ordinary course of business, represent all material
agreements currently in force, conform to all the required legal formalities and are valid, binding and in full force and effect and are enforceable against each of the parties thereto. There is no event, occurrence, condition or act (including
the Closing of the transaction contemplated herein) which, with the giving of notice or the lapse of time or both would become a default under the terms and conditions of such agreements. 
 SECTION 4.11. Litigation. (a) Except as disclosed in Schedule 4.11 attached hereto, there is no claim,
action, suit, investigation or proceeding (or any basis therefor) pending against Chamflora or any of the Chamflora Assets before any court or arbitrator or any Governmental Authority. 
 (b) There is no claim, action, suit, litigation, investigation or proceeding (or any basis therefor) outstanding or pending against
Chamflora, any of the Chamflora Assets or IP before any court or arbitrator or any Governmental Authority that would prevent IP from entering into or implementing the transactions contemplated in this Agreement. 
 SECTION 4.12. Licenses and Permits. Schedule 4.12 and Schedule 4.18 attached hereto correctly describes each
license, franchise, permit, certificate, approval or other similar authorization affecting, or relating in any way to the Chamflora Assets, including those currently held by IP or its Affiliates that are related to the Project Mill which will
be held by Chamflora on the Closing Date (the “Chamflora Permits”). Each Chamflora Permit is valid and in full force and effect, there is no material default under, and no condition exists that with notice or lapse of time or
both would constitute a default under, any Chamflora Permit and none of the Chamflora Permits will be terminated or impaired or become terminable, in whole or in part, as a result of the transactions contemplated hereby. 
 SECTION 4.13. Intellectual Property Rights. Schedule 4.13 hereto attached contains a true and complete list
of all Intellectual Property Rights owned by Chamflora and all Intellectual Property Rights used by Chamflora by license or other agreement. Such Intellectual Property Rights represent all items of intellectual property necessary to permit
Chamflora to conduct its operations as currently conducted. There is no claim, action, suit, investigation or proceeding (or any basis therefor) pending against the use of any such Intellectual Property Rights. 
  

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 SECTION 4.14. Chamflora Operating Systems. Schedule 4.14
hereto attached contains a true and complete list of all systems used by IP in the operations of Chamflora, including, without limitation, the SAP system] (the “Chamflora Operating Systems”). Chamflora has all the licenses
necessary to own and operate the Chamflora Operating Systems. The Chamflora Operating Systems represent all systems necessary to permit Chamflora to conduct its operations as currently conducted. There is no claim, action, suit,
investigation or proceeding (or any basis therefor) pending against the use of the Chamflora Operating Systems. 
 SECTION 4.15. Chamflora Biotechnology Property Rights. Schedule 4.15 hereto attached contains a true and complete list of all Biotechnology Property Rights owned by Chamflora and all Biotechnology Property
Rights used by Chamflora by license or other agreement (the “Chamflora Biotechnology Property Rights”). The Chamflora Biotechnology Property Rights represent all items of Biotechnology necessary to permit Chamflora to conduct
its operations as currently conducted. There is no claim, action, suit, investigation or proceeding (or any basis therefor) pending against the use of any such Chamflora Biotechnology Property Rights. 
 SECTION 4.16. Taxes. Chamflora has filed in a timely manner with the appropriate Governmental Authorities
all Tax Returns required to be filed by them and all such Tax Returns are true, complete and correct in all material respects; all Taxes required to be paid by Chamflora (including Taxes required to be deducted or withheld and paid over to a taxing
authority) have been timely paid in full or are reflected as Tax reserve on the Financial Statements of Chamflora. Schedule 4.16 attached hereto lists all tax incentives so far granted to IP and Chamflora in connection with the Chamflora
Assets, none of which will be reduced, qualified or otherwise affected by this Agreement or the consummation of the transactions contemplated herein. 
 SECTION 4.17. Employee Matters. Except as otherwise indicated in Schedule 4.17, (a) Chamflora is not a party to any collective bargaining agreement with any labor
union, confederation or association, (b) there are no discussions, negotiations, demands or proposals that are pending or have been conducted or made with or by any labor union, confederation or association and (c) there are no pending
labor disputes, strikes or work stoppages against Chamflora. Except as otherwise indicated in Schedule 4.17, Chamflora is not a party to, or sponsors, maintains or contributes to, or is required to contribute to, any bonus, deferred
compensation, incentive compensation, stock purchase, stock option, severance or termination pay, hospitalization or other medical, life or other insurance, supplemental unemployment benefits, profit-sharing, pension, or retirement plan, program,
agreement or arrangement. Except as otherwise indicated in Schedule 4.17, all the labor obligations of Chamflora, including any labor obligation derived from law or collective agreements (such as salaries, bonus, and their accessory benefits),
and all the social security contributions and labor union contributions of Chamflora, have been duly calculated, declared and paid. 
  

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 SECTION 4.18. Environmental Matters. Chamflora has been in
compliance, in all material respects, with all applicable Environmental Laws, and therefore there is no environmental remediation pending or, to the best of IP’s knowledge, threatened regarding the Chamflora Assets. IP has been granted all
permits required to be granted under Environmental Laws for the Chamflora Assets in their current stage (“Environmental Permits”). Schedule 4.18(a) hereto lists the Environmental Permits held by IP and its Affiliates and
Chamflora. No deadline for the application of the additional Environmental Permits required to build and operate the Project Mill will have expired on the Closing Date. Except as indicated in Schedule 4.18(b), there are no judicial or
administrative pending claims or fines or payments of any nature by any Governmental Authority or any other person in respect of Environmental Laws affecting Chamflora or the Chamflora Assets. 
 SECTION 4.19. Insurance. The Chamflora Assets that are covered by insurance are, as of the date hereof, and
will be, until the Closing Date, covered by insurance policies protecting general liability, in accordance with standard industry practice. 
 SECTION 4.20. Chamflora Assets. Schedule 1.01(a) contains a complete list of all of the Chamflora Assets. On the Closing Date, Chamflora shall have all unencumbered right,
title and interest to the Chamflora Assets. 
 SECTION 4.21. No Undisclosed Liabilities. There
are no liabilities of Chamflora of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, and there is no existing condition, situation or set of circumstances that could reasonably be expected to result
in such a liability, other than liabilities provided for in the Chamflora Financial Statements or liabilities disclosed in any of the Schedules attached hereto. 
 SECTION 4.22. IP’s representations. (a) IP is duly organized, validly existing and in good standing under the laws of the Federative Republic of Brazil. (b) The
execution, delivery and performance by IP of this Agreement and the consummation of the transactions contemplated hereby are within the powers of IP. IP is duly authorized by all necessary corporate action on the part of IP. This Agreement
constitutes a valid and binding agreement upon IP and is enforceable against IP in accordance with its terms. (c) The execution, delivery and performance by IP of this Agreement and the consummation of the transactions contemplated hereby
require no action, approval, consent or declaration by or in respect of, notice or filing with, any Governmental Authority, agency or official other than the filing with CADE. (d) The execution, delivery and performance by IP of this Agreement
and the consummation of the transactions contemplated herein do not and will not (i) violate the organizational documents or bylaws of IP, (ii) assuming any filing required by the antitrust authorities properly made, violate any applicable
material law, rule, regulation, judgment, injunction, order or decree or (iii) violate any contract, agreement or obligation entered into by IP on or prior to the date hereof. 
  

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 (e) There is no action, suit, investigation or proceeding pending against, or to the
knowledge of IP threatened against or affecting, IP before any court or arbitrator or any Governmental Authority, which in any manner challenges or seeks to prevent, alter or materially delay the transaction contemplated by this Agreement.
(f) In entering into this Agreement, IP acknowledges that (a) it has conducted an independent due diligence investigation, review and analysis of the LA Establishment, and (b) except for the specific representations and warranties
contained herein, IP has relied solely upon the aforementioned investigation, review and analysis and not on any factual representations and warranties of VCP (and of its respective Representatives). (g) IP has the financial capacity whether
through its own resources or through committed credit facilities from reputable financial institutions to fulfill all of its obligations under this Agreement. The fulfillment of all obligations assumed by IP in this Agreement is not subject to
any financing condition. 
 SECTION 4.23. No Other Representations and Warranties. Except for
the representations and warranties contained in this Article 4, IP does not make any representation or warranty, express or implied, to VCP, as to any matter. 
 ARTICLE 5 
 REPRESENTATIONS AND
WARRANTIES 
 WITH RESPECT TO THE LA
ESTABLISHMENT AND THE LA COMPANY 
 VCP represents and warrants to
IP that each of the following representations and warranties is, and will be on the Closing Date, true and correct and in full force and effect: 
 SECTION 5.01. Existence and Power. VCP is a company duly organized, validly existing and in good standing under the laws of the Federative Republic of Brazil and has all
material corporate powers, governmental licenses, authorizations, permits, consents and approvals required to own and operate the LA Establishment. On the Closing Date, the LA Company will be duly organized, validly existing and in good
standing under the laws of the Federative Republic of Brazil and will have all material corporate powers, governmental licenses, authorizations, permits, consents and approvals required to own and operate the LA Establishment. 
 SECTION 5.02. Authorization, Binding Effect. The execution, delivery and performance by VCP of this
Agreement and the consummation of the transactions contemplated herein are within VCP’s powers. VCP is duly authorized by all necessary corporate action to execute, deliver, perform and consummate the transactions contemplated in this
Agreement. This Agreement constitutes a valid and binding agreement upon VCP and is enforceable against VCP in accordance with its terms. 
  

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 SECTION 5.03. Governmental Authorization. The execution,
delivery and performance by VCP of this Agreement and the consummation of the transactions contemplated hereby require no action, approval, consent or declaration by or in respect of, notice or filing with, any Governmental Authority, agency or
official other than the filing with CADE. 
 SECTION 5.04. Noncontravention. The execution,
delivery and performance by VCP of this Agreement and the consummation of the transactions contemplated herein do not and will not (i) violate the organizational documents or bylaws of VCP, (ii) assuming any filing required by the
antitrust authorities is properly made, violate any material applicable law, rule, regulation, judgment, injunction, order or decree, (iii) require any consent or other action by any Person, constitute a default, or give rise to any right of
termination, cancellation, vesting or acceleration of any right or obligation of VCP affecting the LA Establishment, or to a loss of any benefit to which the LA Establishment is entitled (or a loss of any benefit to which the LA Company will be
entitled as of the Closing Date) under any provision of any law, agreement or other instrument, or (iv) result in the creation or imposition of any Lien on any of the assets of the LA Establishment (or in the Luiz Antonio Quotas, as of the
Closing Date). 
 SECTION 5.05. Capital Stock and Ownership of Shares. On the Closing Date, all
the quotas of the capital stock of the LA Company shall be validly issued, totally subscribed and paid in, non-assessable and directly owned by VCP, and there will be no (i) other outstanding quotas issued by the LA Company or other ownership
interests of the LA Company, or (ii) options or other rights to acquire from the LA Company or from VCP or other obligation of the LA Company to issue any quotas of capital stock or other ownership interests of the LA Company. On the
Closing Date, there will be no outstanding obligations of the LA Company to repurchase, redeem or otherwise acquire any quotas of capital stock of the LA Company. 
 SECTION 5.06. Subsidiaries. Upon completion of the Reorganization, the LA Company shall not own any securities or other ownership interest in any Person, or any other
investment in any Person, whether by means of a share purchase, capital contribution or otherwise. 
 SECTION
5.07. Pro Forma Financial Information. Schedule 5.07 attached hereto contains a true copy of unaudited pro forma financial information of the LA Establishment for the fiscal year ended December 31, 2005, and the period ended on
June 30, 2006 (the “LA Company Financial Information”). The LA Company Financial Information has been extracted from VCP’s management information, which has been prepared on a basis consistent with VCP’s past
practices. To the best knowledge of VCP management, the LA Company Financial Information are true and correct, can be reconciled with the books and records of VCP in connection with the LA Establishment and fairly present, in all material aspects,
the current assets, current liabilities, fixed assets and results of operations of the LA Establishment as of the date and for the period indicated therein. Since June 30, 2006, no transactions out of the ordinary course of business have
occurred. 
  

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 LA EstablishmentLA Company Financial InformationLA EstablishmentLA Establishment.

 SECTION 5.08. Assets. (a) VCP has (and, on the Closing Date, the LA Company shall have)
good and marketable, legitimate title, free and clear of any Liens, or, in the case of leased properties and assets, has valid leasehold interests, in all LA Assets, and none of such LA Assets is subject to any Lien, except for Liens created by
operation of law (“reserva legal” and “área de preservação permanente”). 
 (b)
The properties and assets owned, leased or subleased or licensed to the LA Establishment, or which it otherwise has the right to use, constitute all of the properties and assets used or held for use in connection with the operation of the LA
Establishment and are adequate to conduct such operation as currently conducted. All of the LA Establishment properties and assets are in good working condition and repair, ordinary wear and tear excepted, and have been maintained in a manner
consistent with generally accepted industry practice. 
 SECTION 5.09. Absence of Certain
Changes. As from June 30, 2006, VCP has conducted the LA Establishment in the ordinary and usual course of business. In addition, as from June 30, 2006 up to the date hereof, there has been: 
 (i) no physical damage, destruction, loss or abandonment of any material asset or property of the LA Establishment; 
 (ii) no acquisition, sale, assignment, transfer, lease, sublease, license or other disposal of any material asset or property of the LA
Establishment; 
 (iii) no material change in the management practices of the LA Establishment, including changes in prices,
distribution channels, product mix, sales policies, geographic limits (export/domestic) etc.; 
 (iv) no creation of any Liens
on all or any portion of any material asset or property of the LA Establishment; 
 (v) except as listed in Schedule 5.09(v)
hereto attached, no material amendment, modification, alteration, failure to renew or termination of any material contract of the LA Establishment; 
 (vi) no waiver of any material rights of the LA Establishment or any cancellation of any material claims, debts or accounts receivable owing to the LA Establishment, other than in the ordinary course of
business; 
  

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 (vii) no entering into any form of financial agreement related to the LA Establishment;

 (viii) no revaluation of any tangible or intangible assets of the LA Establishment; 
 (ix) no litigation, which has had or could have a material adverse effect on the LA Establishment or its financial condition; 
 (x) no material loss; 
 (xi) no material adverse change in the LA Establishment’ financial condition, business, operations or prospects; 
 (xii) no commitment by VCP to do any of the foregoing. 
 SECTION 5.10. Contracts. The
agreements related to the LA Establishment presently in force, including service agreements, which are listed in Schedule 5.10(a) attached hereto, were entered into and executed in the ordinary course of business, represent all material agreements
currently in force, conform to all the required legal formalities and are valid, binding and in full force and effect and are enforceable against each of the parties thereto. Except as provided for in Schedule 5.10(b), there is no event,
occurrence, condition or act (including the Closing of the transaction contemplated herein) which, with the giving of notice or the lapse of time or both would become a default under the terms and conditions of such agreements. The LA Company shall
have, on the Closing Date, all required contracts to operate the LA Establishment. 
 SECTION
5.11. Litigation. (a) Except as disclosed in Schedule 5.11 attached hereto, there is no claim, action, suit, investigation or proceeding (or any basis therefor) pending against the LA Establishment (and, as of the Closing Date,
against the LA Company) before any court or arbitrator or any Governmental Authority, nor any related provisions and judicial deposits, which provisions and judicial deposits shall be transferred to the LA Company along with the litigation
pertaining to the LA Establishment. 
 (b) There is no claim, action, suit, litigation, investigation or proceeding (or any
basis therefor) outstanding or pending against VCP and/or the LA Establishment (and, as of the Closing Date, against the LA Company) before any court or arbitrator or any Governmental Authority that would prevent VCP from entering into or
implementing the transactions contemplated in this Agreement. 
  

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 SECTION 5.12. Licenses and Permits. Schedule 5.12(a)
attached hereto correctly describes each license, franchise, permit, certificate, approval or other similar authorization affecting, or relating in any way to, the LA Establishment (the “LA Permits”). Except as otherwise
indicated in Schedule 5.12(b), each LA Permit is valid and in full force and effect and will remain valid and in full force and effect on the closing Date. There is no material default under, and no condition exists that with notice or lapse of time
or both would constitute a default under, any LA Permit and none of the LA Permits will be terminated or impaired or become terminable, in whole or in part, as a result of the transactions contemplated hereby. The LA Company shall have on the
Closing Date all of the material licenses, franchises, permits, certificates, approvals or other similar authorization necessary to operate the LA Establishment as currently operated. 
 SECTION 5.13. Intellectual Property Rights. The LA Establishment owns or has the right to use all of the
Intellectual Property Rights necessary to permit VCP to conduct the operation of the LA Establishment as currently conducted. There is no claim, action, suit, investigation or proceeding (or any basis therefor) pending against the use of any
such Intellectual Property Rights. 
 SECTION 5.14. LA Operating Systems. Schedule 5.14 hereto
attached contains a true and complete list of all systems used by VCP in the operation of the LA Establishment, including SAP, the middleware software for the paper production control, other software and manual operation systems, including processes
and spreadsheets (the “LA Operating Systems”). VCP has (and, as of the Closing Date, the LA Company shall have) all the licenses necessary to own and operate the LA Operating Systems. The LA Operating Systems represent all
systems necessary to permit VCP to conduct the operation of the LA Establishment as currently conducted. There is no claim, action, suit, investigation or proceeding (or any basis therefor) pending against the use of the LA Operating Systems.

 SECTION 5.15. LA Biotechnology Property Rights. Schedule 5.15hereto attached contains a true
and complete list of all Biotechnology Property Rights owned by the LA Establishment and to be transferred to LA Company and all Biotechnology Property Rights used by the LA Establishment by license or other agreement (the “LA Biotechnology
Property Rights”). The LA Biotechnology Property Rights represent all items of Biotechnology necessary to permit VCP to conduct the operation of the LA Establishment as currently conducted. There is no claim, action, suit,
investigation or proceeding (or any basis therefor) pending against the use of any such LA Biotechnology Property Rights. 
 SECTION 5.16. Taxes. VCP has (and, as of the Closing Date, the LA Company will have) filed in a timely manner with the appropriate Governmental Authorities all Tax Returns required to be filed by it and all
such Tax Returns are true, complete and correct in all material respects; all Taxes required to be paid by VCP (and, as of the Closing Date, LA Company) (including Taxes required to be deducted or withheld and paid over to a taxing authority) have
been (and will be, as of the Closing Date, in the case of the LA Company) timely paid in full or are reflected as Tax reserve on the financial statements of VCP, except in the event that the failure to do so will not impact, in any way, any of the
assets of the LA Establishment. 
  

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 SECTION 5.17. Employee Matters. (a) Schedule 5.17(a)
sets forth an accurate and complete list of the names and titles of all employees of the LA Establishment, either working in the mills, forest operations, or in the São Paulo or any other office, including any such employee who is on
disability leave or any other leave of absence (all such employees, other than those listed in Schedule 5.17 (a1) the “LA Employees”). 
 (b) Schedule 5.17(b) hereto attached contains a true copy of the collective bargaining agreement with any labor union, confederation or association pertaining to the LA Employees of the LA
Establishment. Such collective bargaining agreement is valid, in full force and effective, and conforms to all the required legal formalities. There are no discussions, negotiations, demands or proposals that are pending or have been
conducted or made with or by any labor union, confederation or association pertaining to the LA Employees of the LA Establishment. 
 (c) There is no liability of any kind with respect to amounts withheld or deducted amounts from LA Employees’ earnings, for the period ending on the date hereof (and, upon the Closing of the transaction, on the Closing Date). VCP
is in compliance with all Brazilian federal, state, municipal and other applicable laws and regulations relating to the employment of labor, including all such laws, regulations and orders relating to wages and hours, labor relations, civil rights,
safety and health, workers’ compensation, and social security and other taxes, except in the event that the failure to do so will not impact, in any way, any of the assets of the LA Establishment. 
 (d) As of the Closing Date, all the labor obligations of the LA Company, including any labor obligation derived from law or collective
agreements (such as salaries, bonus, and their accessory benefits), and all the social security contributions and labor union contributions of the LA Company, shall have been duly calculated, declared and paid. 
 (e) Except as disclosed in Schedule 5.17(e), as of the Closing Date, the LA Company shall not be a party to, or sponsor, maintain or
contribute to, or be required to contribute to, any bonus, deferred compensation, incentive compensation, stock purchase, stock option, severance or termination pay, hospitalization or other medical, life or other insurance, supplemental
unemployment benefits, profit-sharing, pension, or retirement plan, program, agreement or arrangement. The transition of the participants of VCP’s pension plan into IP’s pension plan will be determined between the parties by mutual consent
until the Closing Date. 
  

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 (f) There is no (and has not been during the last five years) labor strike, slow down,
stoppage or other material labor difficulty, actual or threatened, against or affecting the LA Establishment. 
 SECTION 5.18. Environmental Matters. Each of VCP and LA Company has been (and, as of the Closing Date, LA Company shall be) in compliance, in all material respects, with all applicable Environmental Laws
affecting in any way the LA Establishment, and therefore there is no environmental remediation pending or, to the best of VCP’s knowledge, threatened regarding the LA Establishment. Schedule 5.18(a) hereto lists the LA Environmental Permits
held by VCP. Except as indicated in Schedule 5.18(b), VCP and LA Company have been granted all permits and other licenses or authorizations required to be granted under Environmental Laws for the LA Establishment (“LA Environmental
Permits”) and there are no judicial or administrative pending claims or fines or payments of any nature by any Governmental Authority or any other person in respect of Environmental Laws affecting VCP and the LA Establishment or LA Company.

 SECTION 5.19. Insurance. Schedule 5.19 hereto attached describes all of the insurance
policies relating to the operations, properties and assets of the LA Establishment in effect as of the date hereof (“Insurance Policies”). All of such Insurance Policies are (i) in full force and effect; (ii) are
underwritten by financially sound and reputable insurers, (iii) are sufficient for all applicable requirements of law; and (iv) secure coverage in amounts and against all risks that are normal and customary for the operation of the LA
Establishment. All of such Insurance Policies will remain in full force and effect in accordance with their terms and will not terminate or lapse by reason of any of the transactions contemplated hereby, or shall be replaced with substantially
equivalent new policies. VCP is not in default in any material respect with respect to its obligations under any of such Insurance Policies, except in the event that such default will not impact, in any way, any of the assets of the LA
Establishment. 
 SECTION 5.20. No Undisclosed Liabilities. There are no liabilities of the LA
Establishment of any kind whatsoever, whether accrued, contingent, absolute, determined, determinable or otherwise, to be transferred to the LA Company, and there is no existing condition, situation or set of circumstances that could reasonably be
expected to result in such a liability, other than liabilities provided for in the LA Company Financial Informationor liabilities disclosed in any of the Schedules attached hereto. 
 SECTION 5.21. LA Establishment. Schedule 5.21 contains a complete list of all of the assets and rights
within the LA Establishment. On the Closing Date, the LA Company shall have all right, title and interest to the LA Assets. The corporate activities of technology research and the forest research laboratories will not be transferred to the LA
Company. Schedule 5.21 hereto lists the professionals involved in research activities who shall remain with VCP.
  

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 The forest research laboratories and the research nursery shall also continue to be operated by VCP under a
free lease for a period of 2 (two) years from the Closing Date, after which the physical space and the buildings shall return to the LA Company. Corporate genetic materials planted in the LA Establishment, except for the ones listed in Schedule
5.15, shall be removed by VCP within 60 (sixty) days as of this date, along with seedlings that the Luiz Antonio nursery is producing for other regions. The Cara Preta Farm shall maintain the normal seedling production to supply the commercial
plantations of the LA Establishment. IP also acknowledges that asbestos cement is used in the Cloning Garden of the Cara Preta Nursery Farm. 
 SECTION 5.22. VCP’s representations. (a) VCP is duly organized, validly existing and in good standing under the laws of the Federative Republic of Brazil. (b) The
execution, delivery and performance by VCP of this Agreement and the consummation of the transactions contemplated hereby are within the powers of VCP. VCP is duly authorized by all necessary corporate action on the part of VCP. This
Agreement constitutes a valid and binding agreement upon VCP and is enforceable against VCP in accordance with its terms. (c) The execution, delivery and performance by VCP of this Agreement and the consummation of the transactions contemplated
hereby require no action, approval, consent or declaration by or in respect of, notice or filing with, any Governmental Authority, agency or official other than the filing with CADE. (d) The execution, delivery and performance by VCP of this
Agreement and the consummation of the transactions contemplated herein do not and will not (i) violate the organizational documents or bylaws of VCP, (ii) assuming any filing required by the antitrust authorities properly made, violate any
applicable material law, rule, regulation, judgment, injunction, order or decree or (iii) violate any contract, agreement or obligation entered into by VCP on or prior to the date hereof. (e) There is no action, suit, investigation or
proceeding pending against, or to the knowledge of VCP threatened against or affecting, VCP before any court or arbitrator or any Governmental Authority, which in any manner challenges or seeks to prevent, alter or materially delay the transaction
contemplated by this Agreement. (f) In entering into this Agreement, VCP acknowledges that (a) it has conducted an independent due diligence investigation, review and analysis of the Chamflora Assets, and (b) except for the specific
representations and warranties contained herein, VCP has relied solely upon the aforementioned investigation, review and analysis and not on any factual representations and warranties of VCP (and of its respective Representatives). (g) VCP has
the financial capacity whether through its own resources or through committed credit facilities from reputable financial institutions to fulfill all of its obligations under this Agreement. The fulfillment of all obligations assumed by VCP in
this Agreement is not subject to any financing condition. 
 SECTION 5.23. No Other Representations and
Warranties. Except for the representations and warranties contained in this Article 5, VCP does not make any representation or warranty, express or implied, to IP, as to any matter. 
  

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 ARTICLE 6 
 ACTIONS BETWEEN SIGNING AND CLOSING 
 SECTION 6.01. Chamflora Reorganization. (a) IP shall take all steps necessary in order to carry out the Chamflora Reorganization prior to the Closing Date. IP
agrees to indemnify and hold VCP, its shareholders and Representatives harmless from and against and in respect of any and all damages, claims and/or losses resulting from the Chamflora Reorganization.
 (b) IP shall take all acts necessary to ensure that no assets, liabilities, business, operations or interests other than those related to
the Chamflora Assets remain with Chamflora as a result of the Chamflora Reorganization. 
 (c) Between the date of this
Agreement and the Closing Date, IP agrees to inform VCP on a bi-weekly basis of the conduct of the Chamflora Reorganization and shall provide VCP with copies of the documentation of the Chamflora Reorganization after their registration in the
applicable Board of Trade, as VCP may reasonably request. 
 SECTION 6.02. Ordinary Course of
Business. (a) During the period from the date hereof until the Closing Date, IP shall cause Chamflora to conduct its business in the ordinary and usual course of business. In addition to the above, IP shall not take any action
that leads to: 
 (i) physical damage, destruction, loss or abandonment of any material Chamflora Asset; 
 (ii) acquisition, sale, assignment, transfer, lease, sublease, license or other disposal of any material Chamflora Asset; 
 (iii) creation of any Liens on all or any portion of any material Chamflora Asset; 
 (iv) a material amendment, modification, alteration, failure to renew or termination of any material contract in connection with the
Chamflora Assets; 
 (v) the potential or actual cancellation or alteration of any of the Permits or Environmental Permits;

 (vi) a waiver of any material rights of Chamflora or any cancellation of any material claims, debts or accounts receivable
owing to Chamflora, other than in the ordinary course of business; 
 (vii) any form of financial agreement related to
Chamflora, other than inter company financing entered into with the prior written consent of VCP; 
  

 24 

 (viii) revaluation of any tangible or intangible assets of Chamflora; 
 (ix) litigation which could have a material adverse effect on Chamflora or its financial condition; 
 (x) a material loss; or 
 (xi) a material adverse change in Chamflora’s financial condition, business, operations or prospects. 
 (b) IP
shall take all necessary measures to continue the process to obtain the required Environmental Permits for Chamflora. IP shall consult and agree with VCP prior to any final measure to be taken. 
 SECTION 6.03. LA Reorganization. (a) VCP shall take all steps necessary in order to carry out the LA
Reorganization prior to the Closing Date. As a result of the LA Reorganization, the LA Establishment shall have been conveyed to the LA Company. VCP agrees to indemnify and hold IP, its shareholders and Representatives harmless from and
against and in respect of any and all damages, claims and/or losses resulting from the VCP Reorganization.
 (b) VCP shall take
all acts necessary to ensure that (i) no assets, business, operations or interests other than those related to the LA Establishment and listed in Schedule 5.21 hereto attached are conveyed to the LA Company as a result of the LA Reorganization.

 (c) Between the date of this Agreement and the Closing Date, VCP agrees to inform IP on a bi-weekly basis of the conduct of
the LA Reorganization and shall provide IP with copies of the documentation of the LA Reorganization after their registration in the applicable Board of Trade, as IP may reasonably request. 
 SECTION 6.04. Ordinary Course of Business. (a) During the period from the date hereof until the Closing
Date, VCP shall conduct the operation of the LA Establishment in the ordinary and usual course of business. In addition to the above, VCP shall not take any action that may lead to: 
 (i) physical damage, destruction, loss or abandonment of any material asset or property of the LA Establishment; 
 (ii) acquisition, sale, assignment, transfer, lease, sublease, license or other disposal of any material asset or property of the LA
Establishment; 
 (iii) a material change in the management practices of the LA Establishment, including changes in prices,
distribution channels, product mix, sales policies, geographic limits (export/domestic) etc.; 
  

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 (iv) the creation of any Liens on all or any portion of any material asset or property of
the LA Establishment; 
 (v) a material amendment, modification, alteration, failure to renew or termination of any material
contract of the LA Establishment; 
 (vi) a waiver of any material rights of the LA Establishment or any cancellation of any
material claims, debts or accounts receivable owing to the LA Establishment, other than in the ordinary course of business; 
 (vii) any form of financial agreement related to the LA Establishment; 
 (viii) revaluation of any tangible or
intangible assets of the LA Establishment; 
 (ix) litigation which could have a material adverse effect on the LA Establishment
or its financial condition; 
 (x) a material loss; 
 (xi) termination of employment relationships with a key personnel of the LA Establishment, other than voluntary termination or termination
for cause; 
 (xii) a change in the historical practice with respect to working capital of the LA Establishment; or 

(xiii) a material adverse change in the LA Establishment financial condition, business, operations or prospects, 
 provided however, that VCP shall be entitled to withdraw from LA Company the amount of cash or cash equivalents of LA Company existing on the Closing Date,
subject to Section 9.09 below. 
 SECTION 6.05. Representatives. (a) In good faith and in
order to ensure a successful and smooth transition after the exchange between IP and VCP with respect to the LA Establishment and Chamflora, as of the date of this Agreement and until the Closing Date, IP and VCP may each appoint
representatives to observe the day-to-day business activities of the LA Establishment and Chamflora, which representatives shall have access to the books and records of Chamflora or the LA Company (as the case may be), and the LA Establishment, but
excluding any books, records or databases which are shared by the LA Establishment with other VCP plants or operations, until such information is segregated to reflect only the LA Establishment, and may consult, make inquiries and request reasonable
information to VCP’s and IP’s officers. 
  

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 (b) Such representatives shall call the attention of VCP’s and IP’s officers for
maintenance issues and other operational problems detected in relation to the ordinary course of business of the LA Establishment, the LA Company and Chamflora, and shall be allowed to take action to prevent the aggravation of or to solve such
issues and problems, should VCP or IP (as the case may be) fail to remedy the situation. 
 SECTION
6.06. Environmental Matters. The Parties acknowledge that VCP has applied for and is in the process of obtaining the applicable operating license for the LA Establishment for a production capacity of up to 360,000 tonnes of pulp per
year. The Parties hereby agree that VCP shall be fully responsible for obtaining such license. In addition to such license and considering the current production capacity status of the LA Establishment, prior to the Closing Date, VCP shall
apply for an amendment or a new license, as applicable, authorizing the production of up to 410,000 tonnes of pulp per year. VCP shall also be fully responsible for requesting and obtaining such license, provided that prior to taking any measure to
obtain such license, VCP shall inform the procedure to be adopted to IP and obtain IP’s consent to such procedure (which consent shall not be unreasonably withheld). The consent by IP in relation to such procedure shall not create any liability
to IP.
 SECTION 6.07. Distributors Supply Commitment. (a) From the date hereof, LA Company or the LA
Establishment, as the case may be, shall maintain the supply of cut size uncoated paper (“Cut Size Paper”) to the market. Such commitment will be communicated to distributors through the LA Company or the LA Establishment, as the
case may be. 
 (b) LA Company or the LA Establishment, as the case may be, is committed to endeavor its best efforts to secure
the continuance of the Cut Size Paper supply, through the execution of distribution agreements or otherwise, with distributors, including those listed in Schedule 6.07(b) hereto (“LA Distributors”), which list does not include all
current distributors of the LA Establishment. Such distribution agreements shall be substantially in the form of the draft of the Distribution Agreement attached hereto as Schedule 6.07(b). 
 (c) VCP shall not, directly or indirectly, for a period of 2 (two) years from the Closing Date, distribute any Cut Size Paper through any of
the LA Distributors nominated in Schedule 6.07(b). 
 SECTION 6.08. Supply and Services
Agreements. (a) VCP shall have assigned to the LA Company the rights and agreements (or shall have caused LA Company to enter into new agreements) necessary for LA Company to maintain the current supplies and services from third
parties to the LA Establishment, including the supply of energy from CPFL Energia, as described below, as well as of other raw materials such as ozone, oxygen, caustic soda and hydrogen peroxide and precipitated calcium carbonate (PCC) with
other suppliers under no less favorable terms and conditions than those currently existing. 
  

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 To the extent VCP may not assign to LA Company the current energy supply agreement with CPFL nor to cause LA
Company to enter into a new agreement with the same price and conditions, then, the existing energy supply agreement with VCP for the LA Establishment will be maintained until its termination and LA Company will fully reimburse VCP of the cost
thereunder. After such termination, LA Company shall negotiate the energy supply agreements in the best possible terms. (b) VCP shall have assigned to the LA Company the service agreements (or shall have caused LA Company to enter into new
agreements) necessary for LA Company to maintain the current services from third parties to the LA Establishment. 
 SECTION 6.09. Employees. VCP shall have caused the LA Employees to be legally and validly transferred to the LA Company, except for those LA Employees who voluntarily terminate their employment relationships or
those who are terminated for cause. 
 SECTION 6.10. Operating Systems. VCP shall have taken all
necessary and desirable measures in order to cause the LA Company to be the legal owner and duly licensed user of all Operating Systems on a stand alone basis and under substantially the same conditions as the Operating Systems that are currently
used in the LA Establishment. IP and VCP shall create a technical commission which shall define, within 2 (two) months from the date hereof, the procedures for the transition of the Operating Systems of the LA Company from VCP to IP. IP
acknowledges that VCP will not begin the transfer and/or segregation of the LA Operating Systems to the LA Company until December 31, 2006. VCP will endeavor its best efforts to ensure that such transition is completed within 6 (six) months as
from the Closing Date. To the extent that the Operating Systems are not transferred within the above term, IP shall have the right to continue to use and operate the Operating Systems until such transition is completed. 
 SECTION 6.11. Chamflora Project Mill Construction. (a) Pursuant to the terms of this Agreement and the
existing plans and agreements to construct the Project Mill on the land owned by Chamflora, from the execution of this Agreement until the Closing Date, Chamflora shall, upon VCP’s written request: 
 (i) initiate the negotiation for the construction of the Project Mill, including placing orders with suppliers for the necessary equipment
and entering into appropriate agreements and making advance payments; 
 (ii) acquire and negotiate the acquisition of additional
land; 
 (iii) transfer any portion of Chamflora’s cash related to the Project Mill construction to a third party elected by
VCP to be responsible for the engineering, procurement, construction and management of the Project Mill. 
  

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 (b) Considering the estimated costs related to the construction of the Project Mill,
Chamflora shall enter into agreements and acquire from third unrelated parties, assets, rights, services, land and other assets related to the Project Mill in the amount of US$1,150,000,000 (one billion, one hundred and fifty million
dollars). to be funded by IP or its Affiliates within 60 (sixty) days as of the date hereof, provided that the funding date will be determined and informed to VCP in writing within 10 (ten) days from the date hereof. 
 SECTION 6.12. Transition Services. IP and VCP shall negotiate mutually acceptable terms under which VCP will provide
to the LA Company the following administrative services for a term of 60 (sixty) days subject to renewal upon mutual agreement: invoicing, payroll, debt collection, operating systems, among others. 
 SECTION 6.13. Delivery of pending Schedules. VCP agrees to deliver to IP the schedules related to the LA Establishment
listed in Schedule 6.13(a) within 6 (six) days of the date hereof. 
 ARTICLE 7 
 COVENANTS OF ALL PARTIES 
 SECTION 7.01. Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, the
Parties hereto shall take, or cause to be taken, all actions and to do, or cause to be done, all things necessary under applicable laws and regulations to consummate the transactions contemplated by this Agreement. The Parties agree to execute
and deliver all such documents, certificates, agreements and other writings and to take such other actions as may be necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement.

 SECTION 7.02. Confidentiality. (a) From and after the date hereof, the Parties agree
jointly and severally to hold, and to cause their Affiliates and respective Representatives to hold, in confidence, all confidential documents and information concerning the Chamflora Assets, the LA Establishment and/or the Parties, including
without limitation, certain non-public information about the proposed or potential business strategy, operations, financial matters and other matters relating to the Chamflora Assets, the LA Establishment and/or the Parties (the
“Confidential Information”), except to the extent that such information can be shown to have been (i) in the public domain through no fault of any of the Parties or (ii) later lawfully acquired by any of the Parties from
other sources without any breach of any law, regulation, order or confidentiality obligation. Confidential Information may only be disclosed in the event that any of the Parties is compelled to disclose such Confidential Information by law,
rule, regulation, order or decree enacted by a Governmental Authority to which such Party is subject or as a result of judicial or administrative process in connection with any action, suit, proceeding or investigation. In any event
Confidential Information is disclosed, the disclosing Party shall previously inform the other Party and agree upon the contents of such disclosure. 
  

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 (b) From and after the date hereof, the Parties agree to hold, and to cause their Affiliates
and respective Representatives to hold, in confidence, any and all information regarding the terms and conditions of this Agreement. The terms and conditions of this Agreement may only be disclosed in the event that any of the Parties is
compelled to disclose such information by law, rule, regulation, order or decree enacted by a Governmental Authority to which the Party is subject or as a result of judicial or administrative process in connection with any action, suit, proceeding
or investigation. In any event the terms and conditions of this Agreement are disclosed, the disclosing Party shall previously inform the other Party and agree upon the contents of such disclosure. 
 SECTION 7.03. Public Announcements. The Parties agree to consult with each other before issuing any press
release or making any public statement with respect to this Agreement or the transactions contemplated hereby and will not issue any such press release or make any such public statement prior to agree on the content of such press release or public
announcement. 
 SECTION 7.04. (a) The transactions contemplated in this Agreement do not represent any
change in the Parties’ commercial relationship or any change in any of the Parties’ business competitive strategy toward the other Party or the other competitors in the pulp and paper markets in Brazil. 
 (b) Notwithstanding the above, VCP agrees not to, directly or through any of its Affiliates, either alone or together with or on behalf of
any other Person, build, own, finance, manage or operate an uncoated freesheet paper machine in the City of Três Lagoas or in the region comprised of a 100 kilometers radius around the Project Mill for as long as IP owns the IP Paper Machine
(or the Option Paper Machine, if applicable), provided that VCP shall have the right to attract potential investors to the Project Mill, as long as they are not, directly or indirectly, engaged in the uncoated printing and writing paper or packaging
paper businesses. 
 SECTION 7.05. CADE Submission. (a) The Parties agree to make the
appropriate filing with CADE jointly pursuant to applicable antitrust laws within 15 (fifteen) Business Days following the execution of this Agreement to obtain CADE’s approval of the transactions contemplated by this Agreement. The
Parties agree to respond, as promptly as practicable, to any inquiries received from the notified authorities and to supply any additional information and documentary material that may be requested by such notified authorities. 
  

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 (b) VCP agrees to bear all risks arising from the CADE’s decision in relation to the
transfer of Chamflora. In case CADE does not approve such transaction, VCP shall be entitled to (i) dispute the decision in good faith through appropriate administrative or legal proceedings, bearing all the costs arising therefrom, or
(ii) divest all of Chamflora Quotas; and VCP shall hold IP harmless and indemnified from any and all damages, claims and/or losses arising out of any such decision taken by VCP hereunder. In case CADE requires the divestiture of the
Chamflora Assets or any portion thereof, VCP shall be restricted from selling the Chamflora Assets or any portion thereof without having first offered the Chamflora Assets (or Chamflora Quotas, as the case may be) to IP under the same terms and
conditions of a third party bona fide offer. 
 (c) IP agrees to bear all risks arising from the CADE’s decision in
relation to the transfer of the LA Company. In case CADE does not approve any of such transactions, IP shall be entitled to (i) dispute the decision in good faith through appropriate administrative or legal proceedings, bearing all the
costs arising therefrom, or (ii) divest all of the LA Company quotas after the Quota exchange herein provided; and IP shall hold VCP harmless and indemnified from any and all damages, claims and/or losses arising out of any such decision taken
by IP hereunder. In case CADE requires the divestiture of the LA Establishment or any portion thereof, IP shall be restricted from selling the LA Establishment or any portion thereof without having first offered the LA Establishment (or the LA
Company Quotas, as the case may be) to VCP under the same terms and conditions of a third party bona fide offer. 
 (d) In case
CADE imposes any restriction to the supply of pulp in accordance with the Pulp Supply Agreement, VCP and IP shall negotiate in good faith an appropriate action in response to CADE’s restriction. In the event that the Parties are not able
to reach an agreement as to such appropriate action within 30 (thirty) days after the date they were notified of the CADE’s decision, the provisions of Article 11 shall apply. 
 (e) VCP and IP shall cooperate in obtaining any information required for the CADE filing and to supply any information requested by any of
the antitrust authorities. 
 (f) Notwithstanding the above, VCP agrees that IP or any Affiliate thereof shall not be required
to buy back Chamflora Quotas, unwind the transactions, suffer any other impact resulting from the CADE’s decision or otherwise be adversely affected by any decision taken by VCP hereunder. 
 (g) Notwithstanding the above, IP agrees that VCP or any Affiliate thereof shall not be required to buy back the LA Company Quotas, unwind
the transactions, suffer any other impact resulting from the CADE’s decision or otherwise be adversely affected by any decision taken by IP hereunder. 
 (h) VCP and IP shall bear equally the costs of the joint submission provided for in item (a) above. 
  

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 SECTION 7.06. IP Project Support regarding the Chamflora
Assets. (a) IP is committed to provide VCP with IP personnel in order to provide (i) the support and assistance required to enable the VCP’s team to accelerate their familiarity with the Project Mill’s design and
status; (ii) the support as necessary to ensure that the Project Mill construction schedule is maintained; (iii) continuation of the engineering and construction support, as requested and mutually agreed until the Closing Date; and
(iv) continuous activities in securing the construction permit and the installation license for the site, up to the time of issuance of the construction permit, at no cost to VCP. 
 (b) IP will work with VCP to develop a management and oversight framework for obtaining the construction permit and the installation
license. 
 (c) IP will endeavor its best efforts to assist VCP in obtaining tax benefits similar to those accorded to IP.

 (d) IP will also endeavor its best efforts to provide further engineering and project support, as requested by VCP, beyond
this time frame on a fee based structure. 
 SECTION 7.07. Non Solicitation. VCP shall not, for
a period of two (2) years counted as from the Closing Date, directly or indirectly solicit for employment or employ any of the LA Employees, provided that VCP shall not be prevented from hiring any LA Employee as a result of a response to a
general published solicitation or any LA Employee who has not been employed by the LA Company for the preceding six (6) months. 
 SECTION 7.08. Intercompany Loan. Chamflora shall repay any outstanding intercompany loan with IP and Affiliates within 30 (thirty) days as from the Closing Date, provided that such loans have been extended in
connection with the funding of the Project Mill, land acquisition and the forest operations and have been previously consented in writing by VCP. 
 SECTION 7.09. Biotechnology Property Rights. IP and VCP hereby agree not to transfer or reveal to any third parties their Biotechnology Property Rights exchanged hereunder
without the other Party’s prior written consent. In addition, each of VCP and IP will retain the right to access and continue to use their respective Biotechnology Property Rights exchanged hereunder according to a formal plan to be submitted
by VCP and IP to each other within 60 (sixty) days after the Closing Date. 
 SECTION 7.10. LA
Permits. VCP shall continue to support the ongoing actions, at its own cost, to obtain the LA Permits to the extent the LA Permits are not valid or existing on the Closing Date, until the date when they are obtained by LA Company, and IP and LA
Company shall take all actions required to obtain such LA Permits. 
  

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 ARTICLE 8 
 CONDITIONS TO CLOSING 
 SECTION 8.01. VCP’s Conditions to Close. The obligations of VCP to carry out its respective actions at Closing is subject to the fulfillment of the following conditions (unless waived in writing by VCP, to
the extent possible): 
 (i) Covenants. The covenants contained in this Agreement to be complied with by IP on or before
the Closing, including those provided for in Article 6, shall have been complied with in all material respects, except the obligations under Article 3 that shall have been complied with in all respects. 
 (ii) No Order. No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any law, rule, regulation,
judgment, injunction, order or decree (whether temporary, preliminary or permanent) which is in effect and has the effect of making the transactions contemplated by this Agreement illegal or otherwise restraining or prohibiting consummation of such
transactions. 
 (iii) Chamflora. Chamflora shall be the lawful owner of the Chamflora Assets, as listed in Schedule 1.01.

 (iv) No Material Change in Chamflora Assets Condition. None of the events under Section 6.02 shall have occurred,
and the Chamflora Assets must all be substantially in the same condition as per Schedule 1.01 hereto and no fact or event may have arisen resulting from the disclosure in Schedule 4.18(b) restricting or impeding the use of the Chamflora Assets for
their contemplated purposes. 
 (v) Chamflora Company Financial Statements. IP shall have delivered to VCP the unaudited
financial statements of Chamflora as of nearest possible date to the Closing Date, which must only reflect the Chamflora Assets and shall fairly reflect the financial situation of Chamflora on such date, as well as the results of activities in the
relevant time periods. 
 (vi) The representations and Warranties of IP set forth in Article 4 of this Agreement shall remain
valid and in full force in all its materials aspects on the Closing Date. 
 SECTION 8.02. IP’s
Conditions to Close. The obligation of IP to carry out its respective actions at Closing is subject to the fulfillment of the following conditions (unless waived in writing by IP, to the extent possible): 
 (i) Covenants. The covenants contained in this Agreement to be complied with by VCP on or before the Closing, including those provided
for in Article 6, shall have been complied with in all material respects, except the obligations under Article 3 that shall have been complied with in all respects. 
  

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 (ii) No Order. No Governmental Authority shall have enacted, issued, promulgated,
enforced or entered any law, rule, regulation, judgment, injunction, order or decree (whether temporary, preliminary or permanent) which is in effect and has the effect of making the transactions contemplated by this Agreement illegal or otherwise
restraining or prohibiting consummation of such transactions. 
 (iii) Retained Employees. VCP shall have delivered a list
of the employees of Chamflora who shall remain in their positions after the Closing. 
 (iv) LA Company. The LA Company
shall be the lawful owner of the LA Establishment, as listed in Schedule 5.21. 
 (v) No Material Change in the LA Establishment
Conditions. None of the events under Section 6.04 shall have occurred and the assets of the LA Establishment must all be substantially in the same condition as per Schedule 5.21 hereto. 
 (vi) LA Company Financial Statements. VCP shall have delivered to IP the unaudited financial statements of the LA Company as of the
nearest possible date to the Closing Date, which must contain the assets of the LA Establishment listed in Schedule 5.21 attached hereto and shall fairly reflect the financial situation of the LA Company on such date, as well as the results of
activities in the relevant time periods. 
 (vii) Distributors Supply Commitment. VCP shall have caused the LA Company or the LA
Establishment, as the case may be, to maintain the supply of the Cut Size Paper to the market through the execution of distribution agreements or otherwise pursuant to Section 6.07(b) hereof. 
 (viii) Supply and Services Agreement. VCP shall have caused the LA Company to comply with Section 6.08 hereof. 
 (ix) Employees. The LA Employees shall have been transferred to the LA Company pursuant to Section 6.09 hereof. 
 (x) Operating Systems. Subject to Section 6.10, the LA Company shall be the legal owner and duly licensed user of all Operating
Systems on a stand alone basis and under substantially the same conditions of the Operating Systems as currently used in the LA Establishment. 
  

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 (xi) Wet Lap Pulp Supply Agreement. LA Company and VCP shall have entered into the Wet Lap
Pulp Supply Agreement, in the form of Schedule 8.02 hereto attached. 
 (xii) The representations and Warranties of VCP set
forth in Article 5 of this Agreement shall remain valid and in full force in all its materials aspects on the Closing Date. 
 ARTICLE 9 
 INDEMNIFICATION 
 SECTION 9.01. Indemnification by IP. Subject to Sections 9.03 and 9.04 below, IP agrees to indemnify and
hold VCP and its Affiliates and its shareholders and Representatives (the “VCP Indemnified Parties”), harmless from any and all liability, loss, damage, claims, awards, judgments, costs and expenses (including reasonable fees and
expenses of attorneys) (“Losses”) incurred or suffered by any of the VCP Indemnified Parties in connection with, relating to or as a result of (i) any breach of any representations and warranties given by IP in Article 4
hereof; and/or (ii) any breach by IP of any covenant or agreement contained in this Agreement; and/or (iii) any and all debts and liabilities of any kind (tax, labor, civil, environmental etc.), including but not limited to those related
to judicial or administrative procedures, resulting from any act or omission, fact, event or circumstance related to the Chamflora Assets that occurred on or prior to the Closing Date, which have not been recorded in the Chamflora Financial
Statements or disclosed in the Schedules hereto attached. 
 SECTION 9.02. Indemnification by
VCP. Subject to Sections 9.03 and 9.05 below, VCP agrees to indemnify and hold IP and its Affiliates and its shareholders and Representatives (the “IP Indemnified Parties”), harmless from any and all Losses incurred or
suffered by any of the IP Indemnified Parties in connection with, relating to or as a result of (i) any breach of any representations and warranties given by VCP in Article 5 hereof; and/or (ii) any breach by VCP of any covenant or
agreement contained in this Agreement; and/or (iii) any and all debts and liabilities of any kind (tax, labor, civil, environmental etc.), including but not limited to those related to judicial or administrative procedures, resulting from any
act or omission, fact, event or circumstance related to the LA Establishment or the LA Company that occurred on or prior to the Closing Date, which have not been recorded in the LA Company Financial Informationor disclosed in the Schedules hereto
attached. 
 SECTION 9.03. Survival of Indemnification Obligations. (a) The right to claim
for any indemnification due under this Agreement shall remain in full force and effect for the following terms: 
 (i) with
respect to any and all Losses resulting from Tax related liabilities, for a maximum period of 5 (five) years as of the date hereof, except for homologation Taxes (“tributos de lançamento por homologação”), which
right to claim shall remain in full force and effect for 10 (ten) years as of the date hereof, provided that such Tax related Loss results from acts or omissions, facts, events or circumstances of which the taxable event or origin occurred up to and
including the date hereof; 
  

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 (ii) with respect to any and all Losses resulting from labor related liabilities, for a
maximum period of 2 (two) years as of the date hereof, provided that such labor related Loss results from acts or omissions, facts, events or circumstances occurred up to and including the date hereof; 
 (iii) with respect to any and all Losses resulting from environmental related liabilities, for a maximum period of 5 (five) years as of the
date hereof, provided that such other Loss results from acts or omissions, facts, events or circumstances occurred up to and including the date hereof; and 
 (iv) with respect to any and all Losses resulting from civil, commercial or liabilities of any other nature, for a maximum period of 3 (three) years as of the date hereof, provided that such other Loss
results from acts or omissions, facts, events or circumstances occurred up to and including the date hereof. 
 (b) For the
avoidance of doubt, the indemnification obligation set forth in this Article 9 shall encompass all Losses that are the subject matter of claims filed within the time limits established in Section 9.03(a) above, notwithstanding the fact that the
obligation to make payments or disbursements only becomes enforceable after such dates. 
 SECTION
9.04. Limits on Indemnification. (a) Subject to Section 9.04(b) below, IP’s total indemnification liability to the VCP Indemnified Parties pursuant to Section 9.01 with respect to Losses indemnifiable under this
Agreement shall be limited to the maximum amount of US$20,000,000.00 (twenty million United States dollars). The Parties agree that IP’s indemnification obligation towards any of the Indemnified Parties for Losses under this
Section 9.04(a) shall be triggered only if and when the amount of such Losses exceeds US$1,000,000.00 (one million United States dollars), provided, however, that, with respect to labor related Losses, if the aggregate amount of such Losses
exceeds such figure, including therein any Losses resulting from the labor claims disclosed in Schedule 4.11 hereto attached, IP shall only be liable for the amounts that exceed that figure. 
 (b) IP’s total indemnification liability to the Indemnified Parties with respect to environmental related Losses indemnifiable under
this Agreement shall be limited to the maximum amount of US$40,000,000.00 (forty million United States dollars). The Parties agree that IP’s indemnification obligation towards any of the Indemnified Parties for environmental related Losses
under this Section 9.04(b) shall be triggered only if and when the amount of such Losses exceeds US$1,000,000.00 (one million United States dollars), provided, however, that if the aggregate amount of such environmental related Losses exceeds
such figure, IP shall only be liable for the amounts that exceed that figure. 
  

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 (c) The indemnification liability limits set forth in this Section 9.04 do not apply to
breaches of the representation and warranties with respect to existence and power of IP, ownership and transferability of the Quotas and ownership to the Chamflora Assets, which shall not be subject to any limitation. 
 SECTION 9.05. Limits on Indemnification. (a) Subject to Section 9.05(b) and (c) blow,
VCP’s total indemnification liability to the IP Indemnified Parties with respect to Losses indemnifiable under this Agreement shall be limited to the maximum amount of US$ 50,000,000.00 (fifty million United States dollars). The Parties agree
that VCP’s indemnification obligation towards any of the Indemnified Parties for Losses under this Section 9.05(a) shall be triggered only if and when the amount of such Losses exceeds US$1,000,000.00 (one million United States dollars),
provided, however, that, with respect to labor related Losses, if the aggregate amount of such Losses exceeds such figure, VCP shall only be liable for the amounts that exceed that figure. 
 (b) VCP’s total indemnification liability to the IP Indemnified Parties with respect to environmental related Losses indemnifiable
under this Agreement shall be limited to the maximum amount of US$70,000,000.00 (seventy million United States dollars). The Parties agree that VCP’s indemnification obligation towards any of the Indemnified Parties for environmental related
Losses under this Section 9.05(b) and Section 9.08 below shall be triggered only if and when the amount of such Losses exceeds US$1,000,000.00 (one million United States dollars), provided, however, that if the aggregate amount of such
environmental related Losses exceeds such figure, VCP shall only be liable for the amounts that exceed that figure. 
 (c) The
indemnification liability limits set forth in this Section 9.05 do not apply to breaches of the representation and warranties with respect to existence and power of VCP, ownership and transferability of the Quotas and ownership to the assets
and liabilities pertaining to the LA Establishment, which shall not be subject to any limitation. 
 SECTION
9.06. (a) VCP’s Obligations from Businesses other than the LA Establishment. IP or the LA Company shall not be, in any event, liable for any obligation related to any past, existing or future businesses of VCP other than
the LA Establishment, which shall remain under the responsibility of VCP, including, but not limited to, tax, labor or environmental obligations. For the avoidance of doubt, if IP or the LA Company is compelled to pay for any such obligation of
VCP, VCP shall indemnify and hold IP or the LA Company harmless, without any limit of time and value. If VCP does not indemnify IP or the LA Company within 30 (thirty) days from the date of the request, VCP shall pay a 12% (twelve percent)
interest per annum from the date of the request until the date of the actual payment. 
  

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 (b) IP’s Obligations from Businesses other than Chamflora. VCP or Chamflora
shall not be, in any event, liable for any obligation related to any past, existing or future businesses of IP other than Chamflora, which shall remain under the responsibility of IP, including, but not limited to, tax, labor or environmental
obligations. For the avoidance of doubt, if VCP or Chamflora is compelled to pay for any such obligation of IP, IP shall indemnify and hold VCP or Chamflora harmless, without any limit of time and value. If IP does not indemnify VCP or
Chamflora within 30 (thirty) days from the date of the request, IP shall pay a 12% (twelve percent) interest per annum from the date of the request until the date of the actual payment. 
 SECTION 9.07. Indemnification Procedures. In the event that any action, suit, proceeding, demand, assessment
or other notice of claim (“Claim”) is at any time instituted against or made upon any Indemnified Party for which indemnification may be due from IP or VCP pursuant to Sections 9.01 and 9.02 above, as the case may be, such
Indemnified Party shall notify IP or VCP, as the case may be, in writing as soon as reasonably practical, which notice shall contain a description of the Claim and its subject matter in reasonable detail. IP or VCP, as the case may be, may
either decide to present a defense or counterclaim or pay the amount sought under the Claim. In the event that IP or VCP, as the case may be, does not present a defense, counterclaim or pay the amount sought under the Claim within the two
thirds of the period available for the presentation of the relevant defense, IP or VCP, as the case may be, may assume the defense of the Claim. In the event the Indemnified Party is obliged by a final court decision to pay any amount relating
to any Claim for which IP or VCP, as the case may be, is liable, IP or VCP shall fund or reimburse such amount to the Indemnified Party within 30 (thirty) days counted as of the receipt, by IP, of written notification with evidence of such fact.

 SECTION 9.08. Specific Indemnification by VCP for Operating License. VCP further agrees to indemnify
the IP Indemnified Parties, within the limits set forth in Section 9.05(b) above, from any and all Losses and for any criminal liability or charges resulting from any liability incurred by IP and/or the LA Company arising from the lack or
insufficiency of the operating license of the LA Establishment for the production capacity of up to 410,000 tonnes of pulp per year incurred at any time before or after the Closing Date, until VCP has completed the whole licensing process, that is,
the approval of Preliminary Environmental Report (RAP), if required, and the granting of the Previous, Installation and Operation Licenses to manufacture 410,000 tonnes of pulp per year, provided, however, that VCP’s indemnification obligation
under this clause will only be enforceable if (a) the LA Company pulp production has not exceeded 410,000 tonnes per year; and (b) there has not been any damage (physical, biological or to human health) to the LA Establishment after the
Closing Date that impairs VCP’s ability to complete the licensing process of the LA Establishment. 
  

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 SECTION 9.09. Closing Date Balance Sheet Reimbursement. (a) IP
shall cause LA Company to prepare an audited balance sheet as of the Closing Date, which will be delivered to IP and VCP within 75 days as from the Closing Date. In case such balance sheet reflects a difference in the sum of the accounts receivable,
and inventory minus accounts payable, when compared to the same calculation based on the LA Company Financial Information (Section 5.07), then any negative difference will be reimbursed by VCP to LA Company, and any positive difference will be
reimbursed by LA Company to VCP, within 5 (five) Business Days counted from the delivery of such audited closing date balance sheet. (b) In addition, on the same date provided above, VCP shall reimburse IP for the amount equal to the percentage
of 5.25% per year applied on a pro rata basis to the amount of funding described in Section 6.11 as from the date of funding into Chamflora to the Closing Date, plus the amount of capital increases of Chamflora since May, 31, 2006 until
the date hereof. 
 SECTION 9.10. Ebitda Confirmation. VCP shall prior to Closing Date deliver to IP a
letter confirming the Ebitda of the LA Establishment for the first semester of 2006 (according to Schedule 5.07), duly audited by PriceWaterhouseCoopers (the “Audited Ebitda”). In case the amount corresponding to the audited Ebitda is 20%
lower than the Ebitda provided for in the LA Pro Forma Financial Information, the parties shall negotiate in good faith in order to reach an agreement to settle the above mentioned negative difference. If the parties fail to reach an agreement
within 15 days after the delivery of the Audited Ebitda, IP shall be entitled to request the installation of an arbitration procedure as set forth in Section 11.01. The purpose of such arbitration shall be the determination of any Losses
incurred by IP in connection with such negative difference. Any indemnification award in favor of IP shall be limited to the amount of US$80,000,000 (eighty million dollars). For the avoidance of any doubt, any indemnification award as provided in
this Section shall not be taken into consideration for the purposes of Section 9.05. 
 ARTICLE 10 
 TERMINATION 
 SECTION 10.01. Right to Terminate. This Agreement may be terminated at any time prior to the Closing without liability or penalty to any of the Parties: 
 (i) by the mutual written consent of the Parties; 
 (ii) by either Party in the event that any Governmental Authority shall have issued an order, decree or ruling or taken any other action restraining or otherwise prohibiting the transactions contemplated
by this Agreement and such order, decree, ruling or other action shall have become final and unappealable; 
  

 39 

 (iii) by cause by any of the Parties if the other party is in material breach of any
obligation of this Agreement that is not mitigated within a period of 10 (ten) days counted from the date that such breach is identified and informed to the party that is in breach; 
 (iv) by VCP if the Conditions to Closing provided for in Section 8.01 hereof are not fulfilled or waived in writing until April 1,
2007.; 
 (v) by IP (a) if the Conditions to Closing provided for in Section 8.02 hereof are not fulfilled or waived
in writing until April 1, 2007. 
 SECTION 10.02. Effects of Termination. In the event of
termination of this Agreement as provided in Section 10.01, this Agreement shall immediately become void and there shall be no liability on the part of any Party to this Agreement, except that: 
 (i) the obligations under Sections 7.02, 7.03 and Article 11 will survive; and 
 (ii) nothing in this Article 10 shall relieve either Party from liability for any breach, failure to perform or comply with this Agreement
which has given the right to the other Party to exercise the right of termination pursuant to Section 10.1 of this Agreement; 
 (iii) VCP shall reimburse IP for any expense and indemnify and hold the IP Indemnified Parties harmless from any and all Losses (including, without limitation, Losses claimed by third parties as a result of actions taken by IP to terminate
agreements contemplated in Section 6.11, which were entered into pursuant to VCP’s written request, due to termination of this Agreement) incurred or suffered by any of the IP Indemnified Parties in connection with, relating to or as a
result of any actions performed by the IP Indemnified Parties pursuant to VCP’s written approval, without any of the time, threshold and total amount limitations set forth above for other indemnification obligations of VCP, to the extent
Closing does not occur for any reason other than a willful breach by or negligence of IP under the terms of this Agreement. 
 In addition, IP shall have no liability for any contracts or agreements entered into pursuant to Section 6.11 by VCP’s written request, regardless of termination of this Agreement. 
  

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 SECTION 10.03. Remedies. (a) At any time prior to the
Closing, either Party may: 
 (i) extend the time for the performance of any of the obligations or other acts of the other
Party; 
 (ii) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document
delivered pursuant to this Agreement; or 
 (iii) waive compliance with any of the agreements or conditions contained in this
Agreement. 
 (b) This Agreement may only be terminated prior to Closing and in accordance with Section 10.01 of this
Agreement. After the Closing has taken place, the indemnification rights provided for in Article 9 of this Agreement shall be the sole and ultimate remedy available to the Parties with respect to any breach of the representations and warranties
of the Parties in this Agreement, and/or any breach of any covenant or other term in this Agreement. 
 ARTICLE 11 
 DISPUTE RESOLUTION 
 SECTION 11.01. Arbitration. (a) Any dispute arising between the Parties in connection with this Agreement, its interpretation, validity, performance, enforceability,
breach or termination, shall be settled in an amicable way by the Parties by direct negotiations held in good faith for a term not exceeding 30 (thirty) calendar days. 
 (b) If, upon expiration of the 30-days period, the Parties have not reached an amicable settlement, the dispute must be submitted to the decision of an arbitration panel and shall be finally settled under
the rules of the AMCHAM CA. 
 (c) The arbitrators shall be in the number of 3 (three). VCP shall appoint 1 (one)
arbitrator and IP shall appoint 1 (one) arbitrator. The Parties designated arbitrators shall appoint the third arbitrator, who will be the chairman of the arbitration panel. 
 (d) The arbitration shall be conducted in accordance with the AMCHAM CA rules. 
 (e) The arbitration shall take place in the city of São Paulo and shall be conducted in the Portuguese language. 
 (f) To the fullest extent permitted by law, the Parties waive their right to file any remedies against (including, but not limited to) the
arbitration award and any defenses against its enforcement. The arbitration award shall be final and binding for the Parties. Specifically for purposes of any injunction procedure, whether of preventive, provisional or permanent nature, or
even for purposes of the enforcement of the arbitration award, the Parties hereby elect the jurisdiction of the Central Courts of the City of São Paulo, State of São Paulo, with the exclusion of any other jurisdictions, no matter how
privileged they may be. 
  

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 ARTICLE 12 
 MISCELLANEOUS 
 SECTION 12.01. Binding
Effect. This Agreement will be binding and inure to the benefit of the Parties and their respective legal successors. 
 SECTION 12.02. Assignability. The rights and obligations set forth in this Agreement must not be assigned by any of the Parties, except (i) that IP is entitled to assign all of its rights and obligations
arising from this Agreement to an Affiliate, provided that such Affiliate has agreed, in writing, to be bound to the terms and conditions of this Agreement; and (ii) with the written consent of the other Parties. 
 SECTION 12.03. Severability. In case any term or provision set forth in this Agreement is considered
invalid, illegal or not applicable, due to any legal provision or final court decision, all the other conditions and provisions hereto will remain in full force and effect. In case any term or provision is considered invalid, illegal or
inapplicable, the Parties will negotiate, in good faith, the amendment of this Agreement, so as to effect the original intent of the Parties hereto as closely as possible. 
 SECTION 12.04. Waiver; Amendment. (a) No failure of delay in exercising any right, power or privilege
hereunder will be considered as a waiver thereof, nor will any single or partial exercise thereof prevent the future exercise thereof or the exercise of any other right, power or privilege. The rights and legal measures set forth herein will be
cumulated and will not prevent any other rights or legal measures set forth in the law or in this Agreement. 
 (b) Any
provision of this Agreement may only be amended or waived if through written form and signed by all the Parties hereto. 
 SECTION 12.05. Notices. All notices and communications required or allowed pursuant to this Agreement, will be made in written form, in English, and will be sent by registered mail, by fax (receipt confirmed)
or e-mail (receipt confirmed), to the following addresses: 
  

	
	If to VCP:
	
	Votorantim Celulose e Papel S.A.
	Al. Santos, 1357, 6th floor
	São Paulo, SP 01470-908
	Attn.: Chief Executive Officer

  

 42 

	
	if to IP:
	
	International Paper do Brasil Ltda.
	Attn.: Chief Executive Officer
	Rodovia SP-340, km 171
	Mogi Guaçu, SP 13840-970
	 Brazil
  
 with copy to:

	International Paper do Brasil Ltda.
	Attn.: General Counsel
	Rodovia SP-340, km 171
	Mogi Guaçu, SP 13840-970
	Brazil

 The Parties are entitled to amend, by means of written communication, pursuant to
this Section 12.05, the addresses above. 
 SECTION 12.06. Expenses. All costs and expenses
incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the Party incurring such cost or expense. 
 SECTION 12.07. Conversion Rate. Any amounts in this Agreement expressed in United States dollars shall be converted into Reais by the average of the purchase and
sale rates for United States dollars published by the Central Bank of Brazil on the Business Day immediately prior to the date on which any payment is due or conversion is to be made in accordance with the terms of this Agreement through the
SISBACEN data system under rate PTAX 800, option 5 – L – Taxas para Contabilidade. 
 SECTION
12.08. Headings. The headings of the sections of this Agreement are included for convenience purposes and will not in any way affect the meaning or the interpretation of this Agreement. 
 SECTION 12.09. Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of
counterparts, each of which will be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement will become effective when each Party hereto will have received a counterpart hereof
signed by the other Party hereto. No provision of this Agreement is intended to confer upon any Person other than the Parties hereto any rights or remedies hereunder. 
  

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 SECTION 12.10. Entire Agreement. This Agreement (including
the Schedules hereto) constitute the entire agreement between the Parties with respect to the subject matter of this Agreement. 
 SECTION 12.11. Language. This Agreement was negotiated and is signed in two original copies in the English language. The Parties agree to jointly arrange and approve a translation into Portuguese of this
Agreement within 10 (ten) days counted from the date hereof. In any of the Parties identifies any discrepancy between the Portuguese and the English version of this agreement, at any time, the Parties agree to amend the Portuguese version in way to
reflect as much as possible the intent of the English language. 
 SECTION 12.12. Applicable
Law. This Agreement is governed and interpreted in accordance with the laws of the Federative Republic of Brazil. 
 IN WITNESS
WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their respective authorized officers, as of the day and year below, in the presence of the two witnesses named below. 
 São Paulo, September 19, 2006. 
  

					
	  
	 		  	  

	  
 Votorantim Celulose e Papel S.A.
	 		  	  
 International Paper Investments
 (Holland) B.V.

			
	Witnesses:	 		  	
			
	1)
                                         
               	 		  	2)
                                         
               
	Name:	 		  	Name:
	ID:	 		  	ID:

  

 44

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