Document:

EXHIBIT 4.01

 

MERGER AGREEMENT

 

This Merger Agreement is executed on May 19,
2009 by and between:

 

I.             On the one
hand:

 

PERDIGÃO S.A., a publicly traded company with head offices
in the City and State of São Paulo, at Av. Escola Politécnica, 760, enrolled in
the National Registry of Legal Entities (CNPJ/MF) under No. 01.838.723/0001-27,
herein represented in accordance with its Bylaws (hereinafter referred to as
“PERDIGÃO” or, after the resolution referred to in Section 3.2.(iii),
“BRF”);

 

II.            And, on the other
hand:

 

HFF PARTICIPAÇÕES S.A., a corporation with head
offices in the City and State of São Paulo, at Rua Fortunato Ferraz, 365, 2nd floor, suite 2, Vila Anastácio, enrolled in
the CNPJ/MF under No. 09.625.992/0001-17, herein represented in accordance
with its Bylaws (hereinafter “HFF”); and

 

SADIA S.A., a publicly traded company with head offices in the
City of Concórdia, State of Santa Catarina, at Rua Senador Attílio Fontana, 86,
Centro, enrolled in the CNPJ/MF under No. 20.730.099/0001-94, herein represented
in accordance with its Bylaws (hereinafter referred to as “SADIA”, and, jointly
with PERDIGÃO and HFF, the “Original Parties”); and

 

As Additional Parties, the shareholders of PERDIGÃO listed in Exhibit I
(“PERDIGÃO Adhering Shareholders”) and the shareholders of SADIA that may
adhere to this Agreement among those listed in Exhibit II (“HFF Adhering
Shareholders”), and the Original Parties and the Additional Parties are
hereinafter referred to jointly as Parties,

 

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WHEREAS:

 

(i)                                    Negotiations
took place between representatives of the Original Parties in order to make
feasible a future association between PERDIGÃO and SADIA that would merge their
operations, which shall start upon the merger of HFF shares by PERDIGÃO
(“Merger”);

(ii)                                 The Merger is
expected to result in the reduction of redundant costs and in operating scale
gains that will permit higher investments and a higher rate of sustainable
growth;

(iii)                              This initiative
is in line with the strategy adopted by PERDIGÃO and SADIA of continuous
business growth, resulting in increased efficiency and competitiveness to face
the challenges of the domestic and international markets;

(iv)                             The Merger is
expected to benefit shareholders, collaborators, suppliers and, in particular,
consumers of PERDIGÃO and SADIA products;

(v)                                Within the
scope of the Merger set forth in this Agreement, PERDIGÃO shall be named “BRF —
Brasil Foods S.A.,” and the head offices thereof shall be located in the
municipality of Itajaí, State of Santa Catarina;

(vi)                             In order to
complete the Merger, as conceived, several successive steps shall be
implemented, and the HFF shareholders, and, later, the rest of the SADIA
shareholders shall integrate in the shareholding of BRF, the shares of which
are listed in the New Market of BM&FBOVESPA, as well as the American Depositary Receipt (ADR) traded in the New York Stock Exchange  (NYSE);

(vii)                          SADIA holds
99.99% of the shares issued by Concórdia Holding Financeira S.A. (CNPJ/MF No. 08.944.820/0001-43)
(“Concórdia Financeira”), which itself holds all shares issued by Concórdia
Banco S.A. (CNPJ/MF No. 10.264.663/0001-77) (“Concórdia Banco”), and
99.99% of the shares issued by Concórdia S.A. 

 

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Corretora de Valores Mobiliários Câmbio e Commodities (CNPJ/MF No. 52.904.364/0001-08)
(“Concórdia Corretora”);

(viii)                       The Merger
shall not include the equity interest of SADIA in financial institutions, so
that Concórdia Financeira and its subsidiaries shall not be integrated in the
assets of SADIA by virtue of the Merger of HFF Shares; and

(ix)                               The
negotiations have been successful, and the Original Parties intend to formalize
them in an instrument subject, among other conditions, to the buy-in of certain
PERDIGÃO and HFF shareholders.

 

THE PARTIES RESOLVE to sign this Merger Agreement (“Merger Agreement”),
which shall be governed by the clauses and conditions below:

 

I.             DEFINITIONS

 

1.1          Capitalized
terms used in this Merger Agreement shall have the following meanings:

 

“PERDIGÃO Debenture Shareholders” means, for the purposes of
this Merger Agreement, the PERDIGÃO shareholders that have signed the Adhesion
Instrument referred to in Section 2.1 within the term fixed in Section 2.4.

 

“HFF Debenture Shareholders” means, for the purposes of this
Merger Agreement, the SADIA shareholders that have executed the Adhesion
Instrument referred to in Section 2.1 within the term fixed in Section 2.4.

 

“HFIN Debenture Shareholders” means, for the purposes of this
Merger Agreement, the SADIA shareholders that have executed the HFIN Adhesion
Instrument.

 

“SADIA Shareholders’ Agreement” means the SADIA Shareholders’
Agreement executed on May 2, 2005, which is on file at SADIA headquarters.

 

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“Merger Agreement” means this Merger Agreement.

 

“ESM” means the Extraordinary Shareholders’ Meeting of a
company.

 

“Dispose” means to sell, promise to sell, assign, promise to
assign or otherwise transfer or promise to transfer shares and/or economic
interests in shares.

 

“Disposal of Concórdia Financeira Shares” has the meaning
ascribed thereto in Section 3.2(ii).

 

“Merger” has the meaning ascribed thereto in preamble (i).

 

“Liquid Assets” means the assets and rights with an immediate
possibility of being converted into currency.

 

“BACEN” means the Central Bank of Brazil.

 

“BM&FBOVESPA” means BM&FBovespa S.A. — Bolsa de Valores,
Mercadorias e Futuros.

 

“BRF” means BRF - Brasil Foods S.A.

 

“CADE” means the Administrative Council for Economic Defense.

 

“HFF Debenture Shareholders Voting Commitment” has the meaning
ascribed thereto in Section 10.7.

 

“PERDIGÃO Debenture Shareholders Voting Commitment” has the
meaning ascribed thereto in Section 10.1.

 

“Concórdia Financeira” has the meaning ascribed thereto in
Preamble (vii).

 

“Conditions Precedent” has the meaning ascribed thereto in Section 2.1.

 

“CVM” means the Securities and Exchange Commission of Brazil.

 

“Regular Course of Business” means the set of activities that,
by their nature, purpose or form of execution, are necessary to attain the
corporate purpose of a certain company, considering the continuity of the
business thereof at current 

 

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levels, consistent with past practices, policies and directives
determined by the management bodies without any kind of interruption.

 

“Date of Signature” means this date of signature, May 19,
2009.

 

“Business Day” means any calendar day, except for Saturdays,
Sundays or other days on which commercial banks in the City of São Paulo, State
of São Paulo, are required or authorized by Law to remain closed.

 

“Closing” has the meaning set forth in Section 3.2(iii).

 

“Liens” means any options, agreements, requirements, debts,
doubts, burdens, mortgages, pledges, securities, trusts, usufructs, charges,
contractual rights of first refusal, guaranties or other liens or restrictions
of any nature, however special.

 

“HFIN” has the meaning set forth in Section 2.1.

 

“Merger of HFF Shares” means the merger of all HFF shares into
BRF, as set forth in section 252 and other applicable provisions of the
Corporations Law, and the consequent receipt by the HFF shareholders of the
shares issued by BRF, under the terms and conditions hereof.

 

“Merger of SADIA Shares” means the merger of all SADIA shares
into BRF, as set forth in section 252 and other applicable provisions of the
Corporations Law, and the consequent receipt by the SADIA shareholders of the
shares issued by BRF, under the terms and conditions hereof.

 

“Confidential Information” means all data, materials and other
sensitive information related to the Parties and their respective businesses
and obtained under this Merger Agreement or by virtue of the dealings of the
operations contemplated herein. For the purposes of this Merger Agreement,
Confidential Information shall not include information: (i) that was
already available to the public at the time of signing of this instrument; or (ii) that
may be disclosed by the Parties or the signatory of the Adhesion Instrument because
of legal, regulatory, administrative, arbitral or court order.

 

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“Corporations Law” means Law No. 6,404 of December 15,
1976, and all amendments thereto.

 

“Public Offering of BRF Shares” has the meaning ascribed thereto
in Section 8.1.

 

“Purchase Option” has the meaning ascribed thereto in Section 5.6.1.

 

“Related Parties” means, in relation to either Party: (i) the
companies controlled, directly or indirectly, by either Party; (ii) the
direct or indirect controlled companies of either Party; (iii) any company
that is controlled directly or indirectly by the controllers of either Party;
and (iv) any form of merger, including joint ventures, consortiums and joint associations in which
either Party, their controlling and controlled companies, or any other company
that is controlled directly or indirectly by the controllers of either Party
participates.

 

“Person” means any individual, corporation, company,
partnership, association, cooperative, trust, investment fund, unincorporated
association or any other entity or organization.

 

“Protocol and Justification” has the meaning ascribed thereto in
Section 4.1.

 

“SELIC” means the rate assessed by Selic, obtained by
calculating the adjusted weighted average rate of one-day financing operations,
backed by public federal bonds and traded in such system or in clearance houses
and liquidation of assets as committed operations.

 

“Third-Party Beneficiaries” has the meaning ascribed thereto in Section 10.2.

 

“Adhesion Instrument” means the HFF Adhesion Instrument, the
HFIN Adhesion Instrument or the PERDIGÃO Adhesion Instrument, as the case may
be.

 

“HFF Adhesion Instrument” has the meaning ascribed thereto in Section 2.1.

 

“HFIN Adhesion Instrument” has the meaning ascribed thereto in Section 2.1.

 

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“PERDIGÃO Adhesion Instrument” has the meaning ascribed thereto
in Section 2.1.

 

“Securities” means, with respect to any Person, common shares,
preferred shares and any other bonds and Securities issued thereby, regardless
of the nomenclature used or the existence of voting rights, including
securities convertible into shares or exchangeable thereby, options,
subscription bonuses, rights of first refusal or of a different nature for
purchase, subscription or receipt of equity interests issued by such Person, or
further, any other bonds and Securities whose yield is determined in whole or
in part based on the results, turnover or indicator of financial performance of
such Person.

 

II.            CONDITIONS

 

2.1           The effectiveness of the commitments set
forth in Chapters III, IV, V, VI, VII, IX, X (except for Section 10.12)
and XI (except for Section 11.1) of this Merger Agreement is subject, upon
the terms of sections 121 and 125 and other related provisions of the Civil
Code, cumulatively, to: (i) unrestricted and unconditional adhesion, of an
irrevocable and indefeasible character, by the PERDIGÃO Debenture Shareholders
to the terms and conditions of this Merger Agreement, upon signature of the
adhesion instruments that constitute Exhibit III (“PERDIGÃO Adhesion
Instrument”); (ii) unrestricted and unconditional adhesion, of an
irrevocable and indefeasible character, by the shareholders holding at least
51% of the common shares issued by SADIA, among those listed in Exhibit II,
to the terms and conditions of this Merger Agreement, upon signature of the
adhesion instruments that constitute Exhibit IV hereto (“HFF Adhesion
Instrument”); (iii) description of the SADIA shareholders, among those listed
in Exhibit II, bound directly or indirectly (by means of the holding
company referred to in this Merger Agreement as “HFIN”), before SADIA, upon
execution of the adhesion instruments that constitute Exhibit V (“HFIN
Adhesion Instrument”), in order to purchase the shares issued by Concórdia
Financeira after the ESM set forth in Section 3.2 (ii) is held, and
before consummation of the Merger of HFF Shares (“HFIN Adhering Shareholders”)
(“Conditions Precedent”).

 

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2.2.
The HFF Adhesion Instrument to be executed by the HFF Debenture Shareholders
and the HFIN Adhesion Instrument shall contain a power-of-attorney section
whereby the respective signatory appoints Mr. Luiz Fernando Furlan or
another HFF Debenture Shareholder as its lawful attorney-in-fact with specific
powers to sign all instruments and perform all acts contemplated in this Merger
Agreement in order to complete the Merger. The PERDIGÃO Adhesion Instrument to
be executed by the PERDIGÃO Debenture Shareholders may contain a
power-of-attorney section as set forth above, without prejudice of compliance
with the obligations set forth in this Agreement.

 

2.3.          Once the Conditions Precedent have been
verified, the Parties and the signatories of the Adhesion Instruments shall
perform all acts and sign all documents necessary to implement the Merger,
following the terms of this Merger Agreement and the applicable legal and
regulatory provisions.

 

2.4. This Merger Agreement shall be lawfully terminated in the event
the Conditions Precedent are not verified within fifteen (15) days counted from
the Date of Signature. In such an event, no indemnification shall be due from
either party.

 

III.          PURPOSE

 

3.1           The purpose of this Merger Agreement is to describe
the terms, conditions and procedures agreed to by the Original Parties in order
to attain the Merger.

 

3.2.          The Merger shall be consummated upon consecutive
execution in the following order of the events listed below, which are
described in greater detail in the subsequent chapters of this Merger
Agreement:

 

(i)                                    Signing of the
Protocol and Justification of the Merger of HFF Shares by the PERDIGÃO and HFF
directors, subject to the 

 

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termination clause set forth
in Section 4.1.1;

(ii)                                 Convening of
the ESM of SADIA to vote on the disposal by SADIA to HFIN of all shares issued
by Concórdia Financeira (“Disposal of Concórdia Financeira Shares”);

(iii)                              Amendment of
PERDIGÃO’s bylaws, including to change its corporate name to “BRF — BRASIL
FOODS S.A.”, to modify its governance structure and to transfer its head
offices to the municipality of Itajaí, State of Santa Catarina, and Merger of
HFF Shares (“Closing”);

(iv)                             Signing of the
Protocol and Justification of the Merger of SADIA Shares by the directors of
PERDIGÃO and SADIA;

(v)                                Convening of
the ESM of SADIA in order to elect new members of the Board of Directors; and

(vi)                             Merger of SADIA
Shares.

 

3.3           Concurrently with the events listed above, PERDIGÃO
shall make a Public Offering of Shares as set forth in Chapter VIII (“Public
Offering of BRF Shares”).

 

IV.          THE PROTOCOL AND JUSTIFICATION OF
THE MERGER OF HFF SHARES

 

4.1           Upon verification of the Conditions Precedent, the
PERDIGÃO and HFF directors shall sign the Protocol and Justification of the
Merger of HFF Shares, the terms of which shall comply with the provisions of
this Merger Agreement and the applicable legal and regulatory requirements
(“Protocol and Justification”).

 

4.1.1        The effectiveness of the
Protocol and Justification shall be subject to: a) approval of the Disposal of
Concórdia Financeira Shares, on an unconditional and indefeasible basis, under
the conditions set forth in Section 5.3; b) effective contracting on an
unconditional and indefeasible basis, of the Disposal of Concórdia Financeira
Shares; c) evidencing by HFF of the ownership of at least one hundred and
thirty-one million seventy thousand (131,070,000) shares of 

 

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SADIA common stock, and, at most two hundred and thirty-one million two
hundred and thirty-six thousand seven hundred and twenty-five (231,236,725)
shares of SADIA common stock, upon the submission of a certificate of the
underwriting agent; d) termination, until the date of the Merger of HFF Shares,
under market conditions, of the agreements then in force between (i) on
the one hand, SADIA and/or its subsidiaries and controlled companies, and, on
the other hand, Concórdia Financeira and/or its subsidiaries and/or controlled
companies; and (ii) on the one hand, SADIA and/or its subsidiaries and
controlled companies, and, on the other hand, the HFF shareholders, and/or the
respective Related Parties, by virtue of the Merger of HFF Shares, except for
the agreements related to the Disposal of Concórdia Financeira Shares; and e)
submission of a memorandum by acceptable counsel by PERDIGÃO, with an
explanation of the impacts that the signing of the Merger will cause to Sadia
Overseas Limited and/or SADIA as a result of the obligations assumed by such
companies by virtue of the issue of bonds, whose indenture is dated May 24,
2007, as well as the formalities and actions to be taken to safeguard the
rights of the issuer and of SADIA.

 

V.           EXTRAORDINARY
SHAREHOLDERS MEETING OF SADIA

 

5.1          After the signing
of the Protocol and Justification, SADIA undertakes to convene its ESM on the
same date as the ESM of PERDIGÃO, as set forth in Section 6.1, and as the
ESM of HFF, as set forth in Section 6.2, to vote on the Disposal of
Concórdia Financeira Shares, as set forth in Section 5.3.

 

5.2          In the event
that the ESM of PERDIGÃO does not take place upon first notice, the ESM of
SADIA shall be adjourned until the ESM of PERDIGÃO meets.

 

5.3          The contracting
of the Disposal of Concórdia Financeira Shares is subject to compliance, on a
cumulative basis, with the following conditions: (i) disposal by SADIA of
its all shares on the BM&FBOVESPA; (ii) declaration and payment, in
either national legal tender or Liquid Assets at their market values at the
discretion of Concórdia Financeira, of dividends, by Concórdia

 

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Financeira, in the amount of one hundred and five
million five hundred and fifty-three thousand reais (R$105,553,000.00), to be
deducted from the profit reserves of the Balance Sheets of December 31, 2008;
and (iii) review of the Balance Sheets of Concórdia Financeira, Concórdia Banco
and Concórdia Corretora, all of which are dated March 31, 2009, by independent
audit, and implementation of the adjustments recommended by such audit, all in
accordance with accounting best practices, in order to produce interim Balance
Sheets on April 30, 2009.

 

5.4           The
Parties further agree to submit and await the approval by CVM of the operations
described in Section 5.6(ii) and 5.6.1, in compliance with the applicable
regulations.

 

5.5           Once
the conditions set forth in Section 5.3 have been verified, the instrument of
Disposal of Concórdia Financeira Shares shall be signed immediately after the
closing of the ESM of SADIA as contemplated in this Chapter.

 

5.6           The
Disposal of Concórdia Financeira Shares shall occur as follows: (i) contracting
by SADIA of an assessment report of Concórdia Financeira to be drafted by a
specialized firm and submitted to the SADIA shareholders, which shall vote on
this operation in a General Meeting (“Assessment Report”); (ii) payment by way
of the delivery of one million nine hundred and ninety-one thousand two hundred
and eleven (1,991,211) shares of BRF common stock, which figure may be
supported by the Assessment Report; and (iii) assumption of the obligation by
HFIN to keep SADIA, its controlled companies and BRF indemnified against any
and all complaints and claims related to events, actions and inactions by
Concórdia Financeira prior to the date of contracting of the Disposal of
Concórdia Financeira Shares, even though these may be contested after such
date.

 

5.6.1. Concurrently with the Disposal of Concórdia
Financeira Shares, SADIA shall grant HFIN an irrevocable, indefeasible and
unconditional option to purchase the same one million nine hundred and
ninety-one thousand two 

 

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hundred and eleven (1,991,211) shares of BRF common
stock for the price of thirty-three reais and sixty-five cents (R$33.65) per
common share, as adjusted from the date of delivery of the shares set forth in Section
5.6, by SELIC (“Purchase Option”), and the shares subject to the Purchase
Option shall be kept in the treasury by SADIA during the term of exercise of
the Purchase Option. The Purchase Option may be exercised, at the discretion of
the grantee, as follows: (i) for the purchase of up to 50% of the shares during
the 180 days following the date of contracting thereof, and (ii) for the
purchase of up to the 50% remaining shares during the 360 days following the
date of contracting thereof. The Purchase Option shall bind the successors of
SADIA and shall benefit the successors of the grantee.

 

VI.          MERGER OF HFF SHARES AND AMENDMENT TO THE BYLAWS OF PERDIGÃO

 

6.1           Upon
the signing of the Protocol and Justification, PERDIGÃO undertakes to convene
the ESM of PERDIGÃO within the minimum legal term, and, in the event that the
minimum quorum is not reached upon first notice, it shall immediately issue a
second notice to convene the ESM, also within the minimum legal term, in order
to vote on:

 

(i)                Change of the corporate name of PERDIGÃO to “BRF — BRASIL FOODS S.A.”;

(ii)             Transfer of the head offices of BRF to the municipality of Itajaí, State
of Santa Catarina;

(iii)          Amend the Bylaws of PERDIGÃO in order to establish: a) that the Board of
Directors shall be comprised of 9 to 11 members; and b) a Co-Chairman structure
for the Board of Directors, as set forth in Section 10.4 of this Merger
Agreement;

(iv)         Election of three (3) members and respective alternates for the Board of
Directors, one of whom shall be the Co-Chairman;

(v)            Increase in the company’s authorized capital limit in order to support
the value of the Public Offering of BRF Shares, as set forth in Section 

 

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8.1, with the Board of Directors of PERDIGÃO
authorized to decide on the issuance of shares; and

(vi)         Merger of HFF Shares.

 

6.2           HFF
undertakes to convene the ESM in order to vote on the Merger of HFF Shares on
the same day as the ESM of PERDIGÃO is convened to vote on the issue. In the
event that the ESM of PERDIGÃO does not take place upon first notice, the ESM
of HFF shall be adjourned until the ESM of PERDIGÃO meets.

 

6.3           HFF
shall become a wholly-owned subsidiary of BRF upon approval by the PERDIGÃO and
HFF shareholders of the Merger of HFF Shares.

 

6.4           The
Merger of HFF Shares shall observe a substitution relationship of 0.166247
shares of BRF common stock per each share issued by HFF (“Substitution
Relationship of the Merger of HFF Shares”), considering the premises set forth
in Section 10.9.

 

6.5           The
shareholders holding shares of HFF common stock that disagree with the Merger
of HFF Shares may exercise the right of compensation which they are entitled to
under the Corporations Law.

 

6.6           If
the Merger of HFF Shares is approved at the PERDIGÃO and HFF Extraordinary
Shareholders Meetings, the Officers of HFF shall underwrite the capital
increase of BRF on account of the HFF shareholders on the day that the ESM of
PERDIGÃO approves the Merger of HFF Shares.

 

6.7           After
the Merger of HFF Shares, BRF may, at its discretion, complete the merger of
the wholly-owned subsidiary HFF.

 

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VII.         EXTRAORDINARY SHAREHOLDERS
MEETING OF SADIA TO ELECT NEW MEMBERS OF THE BOARD OF DIRECTORS

 

7.1           After
the signing of the Protocol and Justification, SADIA undertakes to call its ESM
(to be held on the same date, but after the ESM set forth in Section 5.1) in
order to vote on: (i) Amendment of the Bylaws of SADIA to establish that the
Board of Directors shall comprise up to 12 members and be presided over by two
Co-Chairmen; (ii) Election of directors of SADIA, so that such body shall be
comprised of the same Persons who constitute the Board of Directors of BRF, in
addition to the director elected in a separate vote by the holders of preferred
shares at the Annual General Meeting of April 27, 2009.

 

VIII.       PUBLIC OFFERING OF BRF
SHARES

 

8.1           After
the new authorized capital of BRF is fixed, BRF shall make a Public Offering of
Shares in order to raise approximately four billion reais (R$
4,000,000,000.00), through the public distribution of common shares (“Public
Offering of BRF Shares”).

 

8.2           PERDIGÃO
shall employ its best efforts to ensure that the Public Offering of BRF Shares,
upon approval by ANBID and CVM, contemplates, without prejudice to other usual
characteristics of public offerings of shares: (i) priority in the allocation
of shares for all PERDIGÃO shareholders; (ii) priority in the allocation of
shares for all shareholders of SADIA, up to the limit of the equity interest
they would be entitled to if the Merger of Sadia Shares had already occurred,
if it has not already; and (iii) in the institutional offering, priority in the
allocation to BNDES Participações S.A. — BNDESPAR, in the event that such
entity is interested in underwriting the shares.

 

8.3           The
Public Offering of BRF Shares shall comply with the rules issued by the CVM and
the U.S. Securities and Exchange
Commission — SEC.

 

IX.          MERGER OF SADIA SHARES

 

9.1           After
the Merger of HFF Shares, PERDIGÃO shall proceed with the Merger of SADIA
Shares in order to complete the Merger of the companies.

 

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9.2           The
Merger of SADIA Shares shall observe a substitution relationship corresponding
to 0.132998 shares of BRF common stock per each common or preferred share
issued by SADIA (“Substitution Relationship of the Merger of SADIA Shares”).

 

9.3           The
holders of SADIA common stock that disagree with the Merger of SADIA Shares may
exercise their right of compensation, which they are entitled to under the
Corporations Law.

 

X.            OBLIGATIONS OF THE PARTIES

 

10.1         The
PERDIGÃO Debenture Shareholders undertake to vote in favor of, at the ESM
contemplated in Section 6.1 (“PERDIGÃO Debenture Shareholders Voting Commitment”):
a) changing of the corporate name from PERDIGÃO to “BRF — Brasil Foods S.A.”;
b) transferring the head offices of BRF to the municipality of Itajaí, State of
Santa Catarina; c) increasing the limit of the company’s authorized capital in
order to support the value of the Public Offering of BRF Shares, as set forth
in Section 8.1; d) amending the Bylaws of PERDIGÃO to establish that the Board
of Directors shall be composed of 9 to 11 members; and implementing a
co-chairmen structure for the Board of Directors, as set forth in Section 10.4
of this Merger Agreement; e) electing three (3) new members of the Board of
Directors of PERDIGÃO appointed by the HFF Debenture Shareholders, one of whom
shall be the Co-Chairman and the other external, who is understood to be the
one that is not part of the list contained in Exhibit II, and the respective
alternates; f) approving the Merger of HFF Shares and the Protocol and
Justification; e) ratifying the contracting of the company that drafted the HFF
assessment report; g) approving the HFF assessment report; h) increasing the
capital of BRF by issuing new common shares to be underwritten by the HFF
manager, on account of the shareholders thereof; i) authorizing the management
board of BRF to execute all agreements and instruments, and perform all other
acts necessary to carry out the Merger of HFF Shares and other resolutions
passed in the ESM.

 

10.2         The
PERDIGÃO Debenture Shareholders Voting Commitment shall 

 

15

 

benefit all HFF Debenture Shareholders that may become
BRF shareholders by virtue of the Merger of HFF Shares (“Third-Party
Beneficiaries”).

 

10.3         The
PERDIGÃO Debenture Shareholders Voting Commitment shall cease to be effective
on the day before the Annual General Meeting of BRF is held to vote on the
financial statements of the fiscal year ended on December 31, 2010. Until such
date, the PERDIGÃO Debenture Shareholders Voting Commitment shall ensure:

 

(i)                                   the maintenance of (a) the 9-to-11-member size of the BRF Board of
Directors, and (b) the wording of Section 19 of the Bylaws of PERDIGÃO, as in
force on the Execution Date;

(ii)                                the successive election, removal or replacement, as the case may be, of
three of the members of the Board of Directors of BRF, and their respective
alternates, as indicated and directed by the Third-Party Beneficiaries, who
shall, in the event there is a new election for the entire Board of Directors
of BRF during that period, be part of the slate to be submitted by the board of
directors of BRF; and

(iii)                             the maintenance of the co-chairmen structure of the Board of Directors,
as set forth in Section 10.4 of this Merger Agreement.

 

10.4         The
PERDIGÃO Debenture Shareholders, HFF and the HFF Debenture Shareholders
undertake to implement a structure of two (2) co-chairmen for the Board of
Directors of PERDIGÃO and SADIA, with identical privileges and duties. In the
resolutions of the Board of Directors of PERDIGÃO and SADIA, in the event of
ties, the co-chairmen will not cast a vote of quality but will only cast their
respective individual votes.

 

10.5         Compliance
with the provisions of the PERDIGÃO Debenture Shareholders Voting Commitment
may be required by BRF or any Third-Party Beneficiaries, following the terms of
Sections 118 of the Corporations Law and 436 et seq. of the Civil Code, and
PERDIGÃO undertakes to file this Merger Agreement for all legal purposes and
direct the institution that is the depository of the shares thereof to make all
relevant annotations in the company’s records.

 

16

 

10.6         The
members of the Board of Directors of BRF that may be appointed by the HFF
Debenture Shareholders shall execute the Adhesion Instrument under the rules of
the New Market upon the terms of the Regulations of the New Market of
BM&FBOVESPA.

 

10.7         The
HFF Debenture Shareholders undertake, at the ESM of HFF described in Section 6.2,
to vote in favor of (“HFF Debenture Shareholders Voting Commitment”): (i) approving
the Merger of HFF Shares and the Protocol and Justification; (ii) ratifying the
contracting of the company that drafted the HFF assessment report; (iii) approving
the HFF assessment report; (iv) authorizing the management board of HFF to
execute all agreements and instruments and perform all other acts required to
make the Merger of HFF Shares and other resolutions taken at the ESM effective.

 

10.8         HFF
undertakes, at the ESM of SADIA described in Section 7.1, to vote in favor of (i)
amendment to the Bylaws of SADIA, establishing that the Board of Directors
shall be composed of up to 12 members and presided over by two co-chairman; and
(ii) election of the directors of SADIA, so that such body is formed by the
same Persons that constitute the Board of Directors of BRF in addition to the
director elected in a separate vote by the holders of preferred shares in the
Annual General Meeting of April 27, 2009.

 

10.9         The
HFF Debenture Shareholders undertake to: (i) cause the capital stock of HFF to
be divided exclusively in common shares and in the same number as the aggregate
number of common shares issued by SADIA and held by HFF; (ii) cause HFF, by
virtue of the Merger of HFF Shares, to hold at least one hundred and thirty-one
million seventy thousand (131,070,000), and at most two hundred and thirty-one
million two hundred and thirty-six thousand seven hundred and twenty-five
(231,236,725) share of SADIA common stock, free and clear of any Liens,
including those specified in the HFF Adhesion Instruments, except for any
usufructs, which shall be subrogated in HFIN shares, HFF shares, and, later,
BRF shares, upon submission of a certificate of the underwriting agent; and (iii)
cause HFF neither to incur any liabilities nor 

 

17

 

purchase any assets other than the shares issued by
SADIA. The HFF Debenture Shareholders further represent that on the Date of
Signing, HFF has no liabilities, and its assets do not exceed eight hundred
reais (R$800.00).

 

10.10       The
Additional Parties and HFF undertake to: (i) vote in favor of the approval of any
and all corporate acts related to the implementation of the Merger; (ii) recommend
that the members of the board of directors of PERDIGÃO, HFF and SADIA,
appointed thereby, as the case may be, always exercise their voting rights in
favor of implementing the Merger; (iii) take any and all actions required to
complete the Merger; (iv) employ their bests efforts to implement, within the
terms set forth herein, all phases of the Merger by signing all documents and
performing all acts that may be reasonably required or convenient to comply
with the provisions of this Agreement and complete the Merger set forth herein;
and (v) employ their best efforts to obtain, in a timely fashion, any and all
pieces of information or documents required to approve the acts related to the
Merger, as described in Section 3.2, with the CVM, the SEC and related bodies of other jurisdictions in which PERDIGÃO
and SADIA have their Securities traded.

 

10.11       The
Original Parties, including their respective subsidiaries, officers, employees,
consultants and auditors (including counsel and accountants), and other
representatives, undertake to use their best efforts to take, or cause others
to take all actions required and advisable, in accordance with the applicable
law, to assist and cooperate with the Parties in order to implement the Merger
and other transactions set forth herein, including, but not limited to: i)
attend meetings, presentations (including those made by the management), roadshows, drafting sessions and due diligence meetings; ii) assist in the
preparation of registration statements
with the SEC (including the registration statement in the form
F-3 related to the Public Offering of BRF Shares, described in Section 8.1, as
well as an information statement or
registration statement in the
form F-4 intended for holders of ADRs of SADIA and American holders of SADIA
preferred shares, a Form CB statement to
be filed with the SEC regarding
the American holders of shares of SADIA common stock, as well as any other offering memoranda or other offering
documents required under 

 

18

 

the laws of Brazil, the United States or any other
countries related to this Merger Agreement, including the operations set forth
in Section 3.2; iii) provide PERDIGÃO and the advisors thereof (including
underwriters of any public or private offerings of Securities) with the
financial statements or financial data related to SADIA in the same form
regularly used to disclose public offerings of Securities in the United States,
Brazil and other applicable jurisdictions, including all history and pro forma
financial statements, and other financial information required by Regulation S-X and S-K, as set forth in the Securities Act of 1933; iv) employ
their best efforts to obtain comfort and consent letters from accountants,
opinions from counsel, statements of managers and other documents required to
implement the Merger; and v) provide any and all documents and information
reasonably required by PERDIGÃO related to the Merger, in accordance with the
restrictions imposed by antitrust authorities.

 

10.12       For
the duration that this Merger Agreement remains in force, the Parties agree
that they will consult with each other before they disclose any notices to the
market or make statements to the public regarding this Merger Agreement and the
transactions contemplated herein, and they shall not disclose any notice to the
market or make public statements without the prior consent of the other Parties
(which may not be unreasonably denied or withheld). Each Party undertakes to
comply with all obligations related to the regulation of Securities set forth
in the laws of Brazil, the United States and any other countries in which the
Securities of such Party are traded, including, but not limited to, the records
under Form 6-K, as set forth in
the Exchange Act of 1934.

 

10.13       The
beneficiaries of options to purchase shares issued by SADIA under the Share
Purchase Option Plan approved in the ESM of Sadia dated April 29, 2005, with the
amendments approved in the ESM of Sadia dated November 23, 2007, and Programs
in force, shall be entitled, alternatively, to exercise the options up to the
date of the Merger of SADIA Shares or to migrate to a new Share Purchase Option
Plan to be submitted to the BRF Shareholders.

 

19

 

XI.          OTHER PROCEDURES TO BE TAKEN BY THE ORIGINAL PARTIES

 

11.1         The
Original Parties and SADIA undertake to: (i) submit the terms of the Merger
Agreement to the PERDIGÃO Debenture Shareholders and the HFF Debenture
Shareholders; (ii) obtain adhesion on an unrestricted and unconditional basis
to the terms and conditions of the Merger Agreement upon execution by such
shareholders of the respective Adhesion Instruments; and (iii) disclose
immediately the joint Relevant Fact related to the execution of this Merger
Agreement and the transactions described therein.

 

11.2         HFF,
the HFF Debenture Shareholders and the PERDIGÃO Debenture Shareholders
undertake, on an unrestricted and indefeasible basis, until the date of the
Merger of HFF Shares, not to create any Liens on SADIA Shares, HFF Shares or
PERDIGÃO Shares, respectively, which they may hold, and, in the event of liens
arising from court decisions, use their best efforts to immediately replace the
shares for assets of equal value.

 

11.3         HFF,
the HFF Debenture Shareholders and the PERDIGÃO Debenture Shareholders
undertake, on an irrevocable and indefeasible basis, until the date of the
Merger of HFF Shares, not to Dispose in any way of the common shares issued by
SADIA, HFF or PERDIGÃO, respectively, which they may hold, or perform and/or
allow any other actions and/or inactions affecting directly or indirectly in
any way this Agreement, except for the Disposal of shares (i) issued by HFF
among the HFF Debenture Shareholders, or (ii) issued by PERDIGÃO among the
PERDIGÃO Debenture Shareholders.

 

11.4         Once
the Closing takes place, BRF and SADIA shall commence procedures to merge the
respective defined-contribution complementary pension plans and take the
actions set forth in the laws for the settlement, closing or continuity of the
plan as defined benefit, currently managed by the Attilio Francisco Xavier
Fontana Foundation (FAF Benefit Plans, CNPB 1.790.006-38), and migrate, as the
case may be, to a multi-sponsored open pension fund, in compliance with
specific regulations and the need for prior

 

20

 

approval by the Secretariat of Complementary Pension
Funds, and employ their best efforts to obtain it.

 

XII.         REPRESENTATIONS AND WARRANTIES OF THE PARTIES

 

12.1         The
Original Parties, the HFF Debenture Shareholders and the PERDIGÃO Debenture
Shareholders represent and warrant to each other, severally, that:

 

12.1.1.     Authority
and Powers. They have full powers to
execute or adhere, as the case may be, to the terms and conditions of this
Merger Agreement, and carry out all transactions set forth herein, regardless
of any other authorization, and they have taken all corporate and other actions
eventually required for such.

 

12.1.2.     No
Breach and Valid Obligations.
The execution of or adhesion to this Merger Agreement and the assumption of the
obligations set forth herein (a) do not breach any provisions of the
Bylaws of PERDIGÃO, HFF and SADIA and other corporate documents of such
companies (or, in the case of legal entity shareholders, their respective
organizational documents), (b) do not breach or in any way constitute or
cause a default upon the terms of any provisions of any agreement or commitment
or other obligation of such party, (c) do not breach any provisions of the
law, decrees, rules or regulations, administrative or court order to which
the party may be subject, and (d) do not require consents, approvals or
authorizations, notice or filings with any legal entity or individual, court or
governmental authority of any jurisdiction, except for the approval of the
Merger by CADE and other antitrust authorities, which, upon the terms of the
respective laws, should analyze and approve the transaction under this Merger
Agreement.

 

12.1.3.     Binding
Effect. This Merger Agreement shall constitute a
legal, valid and binding obligation against the party.

 

21

 

12.1.4.     Ownership
of the Shares. Each PERDIGÃO Debenture
Shareholder and each HFF Debenture Shareholder represents that it is the
legitimate owner and holder of the shares indicated in the respective Adhesion
Instrument, and it has powers and the right to sell, assign, transfer and
deliver any such shares, free and clear of any Liens, except for the PERDIGÃO
Shareholders Voting Agreement on March 06, 2006, the SADIA Shareholders’
Agreement, or the Liens specified in each Adhesion Instrument, and further
exercise the voting right related thereto.

 

XIII.       REQUEST FOR AUTHORIZATION OF THIRD PARTIES

 

13.1.        PERDIGÃO
and SADIA shall request, before the Closing, the consent for the Merger and all
acts set forth in this Merger Agreement by the financial institutions with
which they have relevant financial agreement subject to statement of
accelerated maturity in case any of the acts set forth in this Merger Agreement
are performed, beyond employing their best efforts to obtain the consent of
such financial institutions and creditors before the Closing.

 

XIV.       CONDUCT OF THE BUSINESS BEFORE THE CLOSING

 

14.1.        In the period from the
Date of Signing of this Merger Agreement and the Closing Date, PERDIGÃO and
SADIA, as reasonably possible, undertake, on a irrevocable and indefeasible
basis, to conduct their respective businesses within the Regular Course of
Business, and they do not assume or allow that any commitments or obligations
are assumed which, due to their exceptional nature, may harm or frustrate the
Merger agreed upon herein. The provisions of this Section do not prevent
PERDIGÃO or SADIA from acting in the market in an independent and competitive
manner without interference of one party towards the other.

 

XV.         NOTICE
OF THE TRANSACTION TO ANTITRUST AUTHORITIES

 

15.1.        Within
15 Business Days, counted from the date of signature of the Merger Agreement,
PERDIGÃO and SADIA shall jointly submit to CADE a 

 

22

 

request for approval of the Merger. PERDIGÃO and SADIA
shall provide and be responsible for the timely and accurate delivery of
information and documents required therefrom for such approval to be granted
under the applicable law.

 

15.2         The
fees and any penalties related to or arising out of the notice mentioned above,
as well as all other costs incurred in submiting the transaction that is the
object of this Merger to the Brazilian antitrust authorities shall be equally
divided by PERDIGÃO and SADIA, except in the case that penalties refer to an
act imputable to either Party alone, in which case the party that causes such
penalty shall be severally responsible for paying it.

 

15.3         In the
event that the Brazilian antitrust authorities believe that it is necessary to
take certain measures to approve this Merger, PERDIGÃO and SADIA shall employ
their good-faith efforts to meet such requirements and make the Merger
effective as soon as possible, with the least harm to the Original Parties and
SADIA, and, in any event, the costs shall be equally borne by the Original
Parties.

 

15.4         The Original Parties undertake to take jointly all actions
necessary to obtain such antitrust consents required to approve this
transaction with the competent antitrust authorities of other jurisdictions
under the respective applicable laws.

 

15.5         All pieces of information and documents required to draft the
mandatory notices under the applicable regulations in force shall be exchanged
by the Parties in strict confidentiality and not used for any purposes other
than the mandatory notice under the applicable laws and regulations related to
this Merger. Any pieces of market information required to draft the notices and
to which the other party should not have access shall be exchanged solely and
exclusively among the counsel and advisors of the Parties.

 

23

 

XVI.       SPECIFIC PERFORMANCE AND ENFORCEABILITY

 

16.1.        Compliance with any of
the obligations contemplated in this Merger Agreement or related thereto may be
ordered to be specifically performed by the creditor of the obligation under
the provisions of Sections 461, 632 and 639 et seq. of the Code of Civil
Procedure.

 

16.2.        The
Original Parties signing this Adhesion Instrument acknowledge that this Merger
Agreement is enforceable out of court upon the terms of section 585, II,
of the Code of Civil Procedure.

 

XVII.      GENERAL PROVISIONS

 

17.1         The quantities of shares, prices or substitution relationships set forth
in this Merger Agreement shall be agreed proportionally, (i) in the event
of grouping, breaking down, bonuses or other events that change the number of
shares divided into the capital stocks of SADIA and PERDIGÃO, with no changes
to the stockholder’s equity of the companies, or (ii) for the amounts
declared or paid to the shareholders as dividends or other income.

 

17.2.        Notices: All notices or
communications related to this Merger Agreement shall be deemed as duly
received by each of the Original Parties if delivered personally or sent by
registered letter, return receipt requested, or transmitted by fax to the
following addresses or any other that either Original Party may at any time
communicate in writing to the others:

 

If to PERDIGÃO

Attention: Leopoldo Saboya

Fax: (11) 3768-5251 with a copy by e-mail

E-mail: leopoldo.saboya@perdigao.com.br with a fax
confirming submission of the e-mail

 

If to SADIA

Attention: Alfredo Felipe da Luz Sobrinho

Fax: (11) 2113-1729 with a copy by e-mail

E-mail: felipe.luz@sadia.com.br with a fax confirming
submission of the e-mail

 

24

 

If to HFF

Attention: Alfredo Felipe da Luz Sobrinho

Fax: (11) 2113-1729 with a copy by e-mail

E-mail: felipe.luz@sadia.com.br with a fax confirming
submission of the e-mail

 

17.3.        Notices
to the Debenture Shareholders shall be sent to the fax numbers and electronic
addresses stated in the respective Adhesion Instruments.

 

17.4.        Expenses. Each Original Party or signatory of an Adhesion Instrument shall bear
the expenses and costs incurred thereby with counsel, advisors, consultants and
any other professionals retained to assist in the Merger.

 

17.5.        Waiver. No tolerance or tacit consent by either Original Party or signatory of
an Adhesion Instrument, or even omission thereof in requiring compliance with
any provision hereof, shall affect, reduce or harm the right of such Original
Party or signatory of the Adhesion Instrument to require future compliance with
such provision. Similarly, any waiver or acceptance by either Original Party or
signatory of the Adhesion Instrument or of successive or continued breaches of
any provision agreed upon herein shall not be construed as a waiver or
acceptance of any other future breach or persistence thereof, nor shall it
cause a waiver, amendment to such provision or novation, or even a waiver to
such right, as set forth herein or raising hereof, acceptance or acknowledgment
of positions and/or rights other than those expressly set forth in this Merger
Agreement.

 

17.6.        Severability.  This Merger Agreement and the Exhibits
hereof, which are for all intents and purposes deemed to be an integral part
hereof, contain the terms and conditions related to the Merger, and they
supersede any other Agreement among the Original Parties and the signatories of
the Adhesion Instrument, whether oral or in writing. In the event any provision
of this Merger Agreement is deemed unenforceable, illegal or invalid because of
breach of any public rules, the remaining provisions shall not be affected and
shall remain in full force and effect, in which case the Original Parties and
the signatories of the 

 

25

 

Adhesion Instrument shall be required to replace the
unenforceable, illegal or invalid provision with another or others that favor
the same ends as the initial provision.

 

17.7.        Assignment.  No assignment of rights and
obligations contained in this Merger Agreement may be made without the prior
and express consent of all Original Parties and the signatories of the
Adhesion Instrument.

 

17.8.        Partial Invalidity.  The declaration of nullity,
invalidity or ineffectiveness of any provision contained in this Merger Agreement shall not affect the
validity and effectiveness of the others, which shall continue to bind the
Original Parties and the signatories of the Adhesion Instrument, as if the
null, invalid or ineffective provision had never been separated or excluded,
and the Original Parties and the signatories of the Adhesion Instrument
undertake to employ their best efforts to attain the purposes of the null,
invalid or ineffective provision by mutual Agreement, including by adding an
alternate provision.

 

17.9.        Successors. This Merger Agreement irrevocably
and indefeasibly binds the Original Parties and the signatories of the
Adhesion Instrument and their respective
heirs, successors or authorized assignees in any way.

 

17.10.      Confidentiality. The Original
Parties and the signatories of the Adhesion Instrument assume the obligation to
keep Confidential Information in absolute secrecy, and they may not disclose or
transfer such information to third parties in any way, or use it for purposes
other than those contemplated in this Merger Agreement.

 

17.10.1.   In
case the Merger is not consummated for any reason:

 

a)     the
Original Parties and the signatories of the Adhesion Instrument undertake to
keep confidential any and all pieces of Confidential Information, and they
further undertake to destroy (and confirm such destruction in writing) all
original documents, work papers and other material related to the transactions
contemplated in this Merger 

 

26

 

Agreement, obtained either before or after the
execution of this Merger Agreement, except for the information actually
included by mutual agreement in a relevant fact published or to be published
under this Merger Agreement; and

 

b)    all
records, applications and other requests made hereunder shall, to the extent
possible, be interrupted or cancelled.

 

17.11.      Arbitration. Any dispute, litigation or conflict arising from or related to the
validity, interpretation, compliance or execution of this Merger Agreement
shall be resolved at a single and unappealable level by arbitration in
accordance with the rules of the Chamber of Arbitration of the
BM&FBOVESPA Market, which shall be in charge of conducting the arbitral
proceeding. In the event that the arbitration regulations of the Chamber of
Arbitration of the BM&FBOVESPA Market are silent in any procedural aspect,
the Original Parties and the signatories of the Adhesion Instrument agree to
additionally apply, in such order, the Brazilian procedural laws set forth in
Law No. 9,307/96 and the Brazilian Code of Civil Procedure.

 

17.11.1.   The
Arbitral Tribunal shall comprise three (3) arbitrators, (i) one
appointed by the Original Party or signatory of the Adhesion Instrument
relating to which the dispute arose, (ii) one appointed by the Original
Party or signatory of the Adhesion Instrument which is in the opposite
position, and (iii) the third arbitrator, who shall act as chairman of the
Arbitral Tribunal, appointed by the two arbitrators appointed by the Parties.
The choice of the third arbitrator shall be made within ten (10) days,
counted from the appointment of the first arbitrator.

 

17.11.2.   The
arbitration shall be conducted in the city of São Paulo, State of São Paulo,
and the language of the arbitration shall be Portuguese.

 

17.11.3.   The
arbitrators shall issue their decision based on the applicable Brazilian laws
then in force, without application of the principle of equity.

 

27

 

17.11.4.   The
Original Parties and the signatories of the Adhesion Instrument agree to employ
all of their efforts to reach a prompt, economical and fair agreement on any
dispute submitted for arbitration.

 

17.11.5.   The
arbitral report shall be deemed final and shall bind the parties involved,
which expressly waive any form of challenge to the arbitral report and the
effects thereof.

 

17.11.6.   The
Original Parties and the signatories of the Adhesion Instrument may appeal to
the Judiciary exclusively in the cases listed below, and such conduct shall not
be deemed an act of waiver of the arbitration as sole means to resolve disputes
related to this Merger Agreement: (i) to ensure commencement of the
arbitration; (ii) to obtain injunctions to protect rights prior to the
formation of the Arbitral Tribunal; (iii) to obtain specific performance
of the provisions of this Merger Agreement; or (iv) to enforce any
decision of the Arbitral Tribunal, including, but not limited to, the arbitral
report.

 

17.11.7.   Refusal
by the Original Party or any of the signatories of the Adhesion Instrument to
accept the decision of the arbitral report shall be deemed a breach thereby
with the obligations assumed herein, and it may further result in application
of the respective penalties, and responsibility for the damages arising from
non-compliance with such decision.

 

17.11.8.   All
costs and expenses arising from the submission of the dispute of this Merger
Agreement to the arbitral tribunal shall be borne by the non-victorious party.
In the event of a decision that is partially favorable to all litigating
Parties, the costs and expenses shall be divided proportionally among them.

 

17.12.      Cooperation
and Contractual Good-Faith.
Each Original Party and each signatory of the Adhesion Instrument shall
cooperate with the others, to the extent possible, and shall provide any
information related to the Merger, as it may reasonably be requested in writing
for perfect completion of the Merger, as set forth in this Merger Agreement.

 

28

 

17.13.      Applicable Law. The interpretation and application of this Merger
Agreement and all matters related thereto shall be governed by the laws of the
Federative Republic of Brazil.

 

17.14.      Effectiveness. This Merger Agreement shall remain in force until the date of
consummation of the operations set forth herein (except for the effects of the
Voting Commitments) or until verification of the termination condition set
forth in Section 2.4.

 

17.14.1    In
the event that the Closing fails to occur within one (1) year, the Merger
Agreement shall be legally terminated.

 

17.15.      Venue. For the
purposes of the provisions of Section 17.11.6., the Original Parties and
the signatories of the Adhesion Instrument elect the Judicial District of São
Paulo, State of São Paulo, as the sole competent venue.

 

IN WITNESS WHEREOF, the Parties sign this instrument
in three (3) copies of equal content and form for one single purpose, in
the presence of two (2) undersigned witnesses.

 

São Paulo, May 19, 2009

 

 

	
  /s/  José Antônio do Prado Fay

  	
   

  	
  /s/
  Gilberto Tomazoni

  
	
  /s/ Leopoldo
  Viriato Saboya

  	
   

  	
  /s/
  Alfredo Felipe da Luz Sobrinho

  
	
  PERDIGÃO
  S.A.

  	
   

  	
  SADIA
  S.A.

  
	
  By
  José Antônio do Prado Fay and

  Leopoldo Viriato Saboya

  	
   

  	
  By
  Gilberto Tomazoni and

  Alfredo Felipe da Luz Sobrinho

  

 

 

	
  /s/
  Luiz Fernando Furlan

  
	
  /s/
  Alfredo Felipe da Luz Sobrinho

  
	
  HFF PARTICIPAÇÕES S.A.

  
	
  By
  Luiz Fernando Furlan and

  
	
  Alfredo
  Felipe da Luz Sobrinho

  

 

29

 

Witnesses:

 

	
  1.

  	
   

  	
  2.

  
	
  Name:

  	
   

  	
  Name:

  
	
  RG:

  	
   

  	
  RG:

  
	
  CPF/MF:

  	
   

  	
  CPF/MF:

  

 

30

 

EXHIBIT I

PERDIGÃO DEBENTURE SHAREHOLDERS

 

1.             Caixa de Previdência dos Funcionários do Banco do
Brasil - Previ

2.             Fundação Sistel de
Seguridade Social

3.             Fundação de Assistência e Previdência Social do
BNDES - Fapes

4.             Fundação Petrobrás de Seguridade Social - Petros

5.             Fundação Vale do Rio Doce de Seguridade Social –
Valia

 

31

 

EXHIBIT II

HFF DEBENTURE SHAREHOLDERS

 

1.             ALEX RENATO DE
MAURA FONTANA

2.             ALEXANDRE FONTANA
SCHMIDT

3.             ALFREDO FELIPE DA
LUZ SOBRINHO

4.             AMPERES
ADMINISTRACAO E PARTICIPACOES LT

5.             ANA MARIA GONCALVES
FURLAN

6.             ANDRÉ BELEZA
FONTANA

7.             ANDRE FONTANA
CARVALHO

8.             ANDRE MONEGAGLIA

9.             ANTIGUA
ADMINISTRACAO E PARTICIPACOES LT

10.           ATTILIO FONTANA
NETO

11.           AUGUSTO ESCOREL
FONTANA

12.           CARLA MARIA
CARVALHO FONTANA

13.           CAROLINA FURLAN
UCHOA CAVALCANTE

14.           CRISTIANO FONTANA
KHEIRALLAH

15.           DANIEL BOTURAO D’AVILA

16.           DANIEL FONTANA
SCHMIDT

17.           DANIELLE FONTANA D
AVILA TRANCHESI

18.           DENISE FONTANA D
AVILA FONTANA

19.           DIOGO LEAL FONTANA

20.           DIVA HELENA FURLAN

21.           EDUARDO FONTANA D
AVILA

22.           FELIPE BOTURAO D’AVILA

23.           FELIPE MONEGAGLIA

24.           FLAVIA THAIS
FONTANA GEMIGNANI

25.           FLAVIO FONTANA
MINCARONI

26.           FLAVIO RIFFEL
SCHMIDT

27.           GABRIELLA FURLAN
VILLARES

28.           GUILHERME PEREIRA
FONTANA CIPRIANI

29.           GUSTAVO FONTANA
STRIKER

30.           HENRIQUE FONTANA
STRIKER

31.           ITALIA BORDIN
FONTANA

 

32

 

32.           JOAO DOMINGOS
FONTANA

33.           JOAO FURLAN DA
SILVA TELLES

34.           JOSE CARLOS FONTANA

35.           JULIANA FONTANA
PUSSET

36.           LEILA MARIA FURLAN DA SILVA TELLES

37.           LIANA FILARDI
FONTANA

38.           LIANEX PARTICIPACAO
LTDA

39.           LUCILA MARIA FURLAN

40.           LUCY FONTANA FURLAN

41.           LUIZ FELIPE FONTANA
LISBOA

42.           LUIZ FERNANDO
FURLAN

43.           LUIZ GOTARDO FURLAN

44.           MANOELA MONEGAGLIA

45.           MARCELA PASSOS
FURLAN

46.           MARCELO FONTANA

47.           MARIA APARECIDA
CUNHA FONTANA

48.           MARIA APARECIDA
FONTANA MINCARONI

49.           MARIA FURLAN DA
SILVA TELLES

50.           MARIA TEREZINHA
FONTANA DOS REIS

51.           MARINA FONTANA

52.           MARISE PEREIRA
FONTANA CIPRIANI

53.           MELISSA PEREIRA
FONTANA CIPRIANI

54.           NELSON FELIPE
KHEIRALLAH FILHO

55.           ODEON ANTONIO
FONTANA

56.           ODILA SPERANDIO

57.           ODYLLA FONTANA D
AVILA

58.           OLD PARTICIPACOES
LTDA

59.           OLGA MARIA DE
CARVALHO LUZ

60.           OLINPAR
PARTICIPACOES LTDA

61.           OLIVER FONTANA

62.           OMAR FONTANA

63.           OMAR FONTANA DOS
REIS

64.           ONEIDA MARIA
SCHNITZER FONTANA

65.           OSORIO HENRIQUE
FURLAN JUNIOR

 

33

 

66.           OTTONI ROMANO
FONTANA FILHO

67.           PATRÍCIA BELEZA
FONTANA

68.           PAULO PUSSET

69.           PEDRO ALBERTO
FONTANA

70.           RAUL MENA BARRETO
DOS REIS

71.           RENATA FONTANA
PUSSET

72.           ROBERTO HOPPNER
FONTANA

73.           ROBERTO PUSSET

74.           ROMANO ANCELMO
FONTANA FILHO

75.           RUTH ESCOREL
FONTANA

76.           RUTH MARIA CARVALHO
LUZ MALZONI

77.           SANDRA MARIA
FONTANA

78.           SERGIO FONTANA DOS
REIS

79.           SIMONE MARIA
FONTANA DOS REIS

80.           SOELY MACHADO
FONTANA

81.           SOFIA ESCOREL
FONTANA

82.           SUNFLOWER
PARTICIPACOES S.A.

83.           TIAGO GUITIAN DOS
REIS

84.           VANIA CUNHA FONTANA

85.           VERA LUCIA FONTANA

86.           VERA LUCIA PEREIRA
FONTANA

87.           VICTOR BAYARD DE
MAURA FONTANA

88.           VICTOR FONTANA

89.           VICTOR FUGANTI

90.           ZOE SILVEIRA D’AVILA

 

34

 

EXHIBIT III

PERDIGÃO ADHESION INSTRUMENT

 

[CORPORATE NAME],
[full identification] (“ADHERING PARTY”),
as shareholder of PERDIGÃO S.A., a company with head offices
in the city and State of São Paulo, at Av. Escola Politécnica, 760, enrolled in
the CNPJ/MF under No. 01.838.723/0001-27 (“PERDIGÃO”), which holds
on the date hereof [    ] common shares issued by the
company, HEREBY ADHERES, on an unrestricted and unconditional basis, to all
terms and conditions of the Merger Agreement
entered into on May 19, 2009 by and between, on the one hand, PERDIGÃO; and, on the other hand, HFF PARTICIPAÇÕES S.A., a company with
head offices in the city and State of São Paulo, at Rua Fortunato Ferraz, 365,
2nd floor, suite 2, Vila Anastácio,
enrolled in the CNPJ/MF under No. 09.625.992/0001-17 (“HFF”), and SADIA S.A., a company with
head offices in the city of Concórdia, State of Santa Catarina, at Rua Senador
Attílio Fontana, 86, Centro, enrolled with the CNPJ/MF under No. 20.730.099/0001-94
(“SADIA”) (“Merger Agreement”).

 

By virtue of the adhesion formalized
hereunder:

 

(i)            the ADHERING PARTY shall have the rights and obligations given to the
PERDIGÃO Debenture Shareholders in the Merger Agreement, and it hereby
declares that it is aware of and agrees
with all such rights and obligations, and further undertakes to comply with
them; and

 

(ii)           all such references made in the Merger Agreement to the PERDIGÃO
Debenture Shareholders shall be deemed as references further to the ADHERING
PARTY.

 

[date]

 

[signature]

 

35

 

EXHIBIT IV

ADHESION INSTRUMENT HFF

 

[NAME/CORPORATE NAME],
[full identification] (“ADHERING PARTY”),
as shareholder of SADIA S.A., a company with
head offices in the city of Concórdia, State of Santa Catarina, at Rua Senador
Attílio Fontana, 86, Centro, enrolled in the CNPJ/MF under No. 20.730.099/0001-94
(“SADIA”), which holds on the date hereof [    ]
common shares issued by the company, HEREBY ADHERES, on an unrestricted and
unconditional basis to all terms and conditions of the Merger Agreement entered into on May 19, 2009 by and between, on the one hand, PERDIGÃO
S.A., a company with head offices in the city and State of São Paulo, at Av.
Escola Politécnica, 760, enrolled in the CNPJ/MF under No. 01.838.723/0001-27
(“PERDIGÃO”); and, on the other hand, HFF
PARTICIPAÇÕES S.A., a company with head offices in the city and State of
São Paulo, at Rua Fortunato Ferraz, 365, 2nd floor, suite 2, Vila Anastácio, enrolled with
the CNPJ/MF under No. 09.625.992/0001-17 (“HFF”),
and SADIA (“Merger Agreement”).

 

By virtue of the adhesion formalized
hereunder:

 

(iii)          the ADHERING PARTY shall have the rights and obligations given to the
HFF Debenture Shareholders in the Merger Agreement, and it hereby declares that it
is aware of and agrees with all such rights and
obligations, and further undertakes to comply with them; and

 

(iv)          all such references made in the Merger Agreement to the HFF Debenture
Shareholders shall be deemed as references further to the ADHERING PARTY.

 

The ADHERING PARTY hereby irrevocably and indefeasibly constitutes [name and identification] (“Grantee”)
as its lawful attorney, with powers required to execute all instruments,
including, for instance, corporate books and share transfer instruments, as
well as attend any and all General Meetings of HFF, 

 

36

 

with powers to vote on the matters described in the
agenda, as well as perform all the acts (a) set forth in the Merger
Agreement, including receipt of notices as set forth in Section 17.2 of
the Merger Agreement, on its behalf and order, or (b) required to attain
the Merger (as defined in the Merger Agreement), including, for instance, contribution
of the shares issued by SADIA and part of the capital of HFF, and agrees that:

 

(i)            SADIA, HFF
and PERDIGÃO are entitled to assume that the Grantee has at all times full
authority to act on behalf and on account of the ADHERING PARTY in respect of
the rights and obligations set forth in the Merger Agreement; and

 

(ii)           the
acts performed by the Grantee under this power of attorney shall bind the
ADHERING PARTY.

 

In addition, the ADHERING PARTY represents that [    ]
of the [    ] common shares issued by SADIA and owned
thereby are recorded by [    ].

 

The power of attorney granted herein shall remain
in force for the term set forth in Section 17.14 of the Merger Agreement.

 

[date]

 

[signature]

 

37

 

EXHIBIT V

HFIN ADHESION INSTRUMENT

 

[NAME/CORPORATE NAME],
[full identification] (“ADHERING PARTY”),
as shareholder of SADIA S.A., a company with
head offices in the city of Concórdia, State of Santa Catarina, at Rua Senador
Attílio Fontana, 86, Centro, enrolled in the CNPJ/MF under No. 20.730.099/0001-94
(“SADIA”), which holds on the date hereof [    ]
common shares issued by the company, HEREBY ADHERES, in an unrestricted and
unconditional basis to all terms and conditions of the Merger Agreement entered into on May 19, 2009 by and between, on the one hand, PERDIGÃO
S.A., a company with head offices in the city and State of São Paulo, at Av.
Escola Politécnica, 760, enrolled in the CNPJ/MF under No. 01.838.723/0001-27
(“PERDIGÃO”); and, on the other hand, HFF
PARTICIPAÇÕES S.A., a company with head offices in the city and State of
São Paulo, at Rua Fortunato Ferraz, 365, 2nd floor, suite 2, Vila Anastácio, enrolled with
the CNPJ/MF under No. 09.625.992/0001-17 (“HFF”),
and SADIA (“Merger Agreement”).

 

By virtue of the adhesion formalized
hereunder:

 

(v)           the ADHERING PARTY shall have the rights and obligations given to the
HFIN Debenture Shareholders in the Merger Agreement, and it hereby
declares that it is aware of and agrees
with all such rights and obligations, and further undertakes to comply with
them; and

 

(vi)          all such references made in the Merger Agreement to the HFIN Debenture
Shareholders shall be deemed as references further to the ADHERING PARTY.

 

The ADHERING PARTY hereby irrevocably and indefeasibly constitutes [name and identification] (“Grantee”)
as its lawful attorney, with powers required to execute all instruments,
including, for instance, corporate books and share transfer instruments, as
well as attend any and all General Meetings of HFIN, 

 

38

 

with powers to vote on the matters described in the
agenda, as well as perform all the acts (a) set forth in the Merger
Agreement, including receipt of notices as set forth in Section 17.2 of
the Merger Agreement, on its behalf and order, or (b) required to attain
the Merger (as defined in the Merger Agreement), including, for instance,
contribution of the shares issued by SADIA and part of the capital of HFIN, and
agrees that:

 

(iii)          SADIA,
HFIN, HFF and PERDIGÃO are entitled to assume that the Grantee has at all times
full authority to act on behalf and on account of the ADHERING PARTY in respect
of the rights and obligations set forth in the Merger Agreement; and

 

(iv)          the
acts performed by the Grantee under this power of attorney shall bind the
ADHERING PARTY.

 

In addition, the ADHERING PARTY represents that [    ]
of the [    ] common shares issued by SADIA and owned
thereby are recorded by [    ].

 

The power of attorney granted herein shall remain in
force for the term set forth in Section 17.14 of the Merger Agreement.

 

[date]

 

[signature]

 

39Exhibit
4.02

 

PRIVATE INSTRUMENT OF AMENDMENT AND

CONSOLIDATION OF SADIA S.A SHAREHOLDERS’ AGREEMENT

 

By this private instrument and in accordance with
Law, the parties named below:

 

1.                                    SUNFLOWER
PARTICIPAÇÕES S.A., a joint stock corporation with its head office in the City
of City of São Paulo, State of São Paulo, at Rua Angelina Maffei Vita, No. 280,
9o andar, enrolled in the Ministry of Finance National Register of Corporate
Taxpayers (CNPJ/MF) under No. 02.949.631/0001-87, represented herein in
accordance with its Bylaws, holder of 36,288,959 ordinary shares issued by
Sadia S.A.;

 

2.                                    MARIA APARECIDA
CUNHA FONTANA, a Brazilian citizen, widow, businesswoman, holder of the
Identity Card RG No. 006.459.978-70, resident and domiciled in the City of
São Paulo, State of São Paulo, at Rua Angelina Maffei Vita, No. 280, 9o.
andar, holder of 600,001 ordinary shares issued by Sadia S.A.;

 

3.                                    WALTER FONTANA
FILHO, a Brazilian citizen, married, economist, holder of the ID RG No. 4.250.008
SSP/SP, and enrolled in the TIN (CPF/MF) under No. 947.648.408-04,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Artur de Souza Marques, No. 17, owner of one (1) ordinary share
issued by Sadia S.A.;

 

4.                                    ATTILIO FONTANA
NETO, a Brazilian citizen, married, business administrator, holder of the ID RG
No. 4.250.009 SSP/SP and enrolled in the TIN (CPF/MF) under No. 872.740.518-49,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Anunze, No. 291, owner of one (1) ordinary share issued by Sadia
S.A.;

 

5.                                    VÂNIA CUNHA
FONTANA, a Brazilian citizen, judicially separated, a business owner, holder of
the ID RG No. 4.240.000SSP/SP and enrolled in the TIN (CPF/MF) under No. 675.466.848-20,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Bauru, No. 547, holder of 1,479,031 ordinary shares issued by Sadia S.A.;

 

6.                                    RUTH ESCOREL
FONTANA, a Brazilian citizen, married, businesswoman, holder of the ID RG No. 5.398.909SSP/SP
and enrolled in the TIN (CPF/MF) under No. 006.323.518-88, resident and
domiciled in the City of São Paulo, State of São Paulo, at Rua Artur de Souza
Marques, no 17, holder of 2,347,253 ordinary shares issued by Sadia S.A.;

 

7.                                    AUGUSTO ESCOREL FONTANA, a Brazilian
citizen, single, business administrator, holder of the ID RG No. 32.433.717-6
SSP/SP and enrolled in the 

 

 

TIN
(CPF/MF) under No. 222.414.258-77, resident and domiciled in the City of
São Paulo, State of São Paulo, at Rua Artur de Souza Marques, No. 17,
owner of 3,000 ordinary shares issued by Sadia S.A.;

 

8.                                    SOFIA ESCOREL FONTANA, a Brazilian citizen, single, business
administrator, holder of the ID RG No. 32.433.718-8 SSP/SP and enrolled in
the TIN (CPF/MF) under No. 310.603.478-57, resident and domiciled in the
City of São Paulo, State of São Paulo, at Rua Artur de Souza Marques, No. 17,
holder of 3,000 ordinary shares issued by Sadia S.A.;

 

9.                                    DIOGO LEAL FONTANA, a Brazilian citizen, single, student, holder of
the ID RG No. 47.885.787-1 SSP/SP and enrolled in the TIN (CPF/MF) under No. 391.264.528-04,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Anunze, No. 291, owner of 100 ordinary shares issued by Sadia S.A.;

 

10.                              ZOÉ SILVEIRA d’AVILA,
a Brazilian citizen, married, physician, holder of the ID RG No. 9.519.414
SSP/SP and enrolled in the TIN (CPF/MF) under No. 005.772.279-04, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Banibas, No. 1256,
owner of 2,545,891 ordinary shares issued by Sadia S.A.;

 

11.                              ODYLLA FONTANA
d’AVILA, a Brazilian citizen, married, business owner, holder of the ID RG No. 8.295.930
SSP/SP and enrolled in the TIN (CPF/MF) under No. 372.336.408-07, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Banibas,
1256, holder of 2,967,065 ordinary shares issued by Sadia S.A.;

 

12.                              EDUARDO FONTANA
d’AVILA, a Brazilian citizen, married, civil engineer, holder of the ID RG No. 5.142.157
SSP/SP and enrolled in the TIN (CPF/MF) under No. 947.648.328-87, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Joaquim
Cândido de Azevedo Marques, No. 750, owner of 7,816,828 ordinary shares
issued by Sadia S.A.;

 

13.                              FELIPE BOTURÃO d’AVILA, a Brazilian citizen, single, lawyer, holder
of the ID RG No. 35.023.699-9 SSP/SP and enrolled in the TIN (CPF/MF) under
No. 221.487.388-01, resident and domiciled in the City of São Paulo, State
of São Paulo, at Rua Joaquim Cândido de Azevedo Marques, No. 750, owner of
8,771 ordinary shares issued by Sadia S.A.;

 

14.                              DANIEL BOTURÃO d’AVILA, a Brazilian citizen, single, business
administrator, holder of the ID RG No. 35.023.692-6 SSP/SP and enrolled in
the TIN (CPF/MF) under No. 322.638.518-60, resident and domiciled in the
City of São Paulo, State of São Paulo, at Rua Joaquim Cândido de Azevedo
Marques, No. 750, owner of 8,771 ordinary shares issued by Sadia S.A.;

 

15.                              CARLA MARIA
CARVALHO FONTANA, a Brazilian citizen, married, businesswoman, holder of the ID
RG No. 556.887 SSP/SC and enrolled in the TIN (CPF/MF) under No. 047.735.808-01,
resident and domiciled in the City of São 

 

2

 

Paulo,
State of São Paulo, at Rua Massacá, No. 325, Edifício Emilion, apartamento
11, holder of 11,143,801 ordinary shares issued by Sadia S.A.;

 

16.                              ALFREDO FELIPE
DA LUZ SOBRINHO, a Brazilian citizen, married, lawyer, holder of the ID RG No. 37.622.335-2
SSP/SP and enrolled in the TIN (CPF/MF) under No. 003.289.871-15, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Gaivota, No. 1027,
apartamento 172-MP, owner of 683,833 ordinary shares issued by Sadia S.A.;

 

17.                              OLGA MARIA DE
CARVALHO LUZ, a Brazilian citizen, divorced, decorator, holder of the ID RG No. 1/R96462
SSP/SC and enrolled in the TIN (CPF/MF) under No. 485.507.289-34, resident
and domiciled in the City of Florianópolis, State of Santa Catarina, at Rua
João Henrique Gonçalves, No. 590, holder of 394,000 ordinary shares issued
by Sadia S.A.;

 

18.                              RUTH MARIA
CARVALHO LUZ MALZONI, a Brazilian citizen, married, homemaker, holder of the ID
RG No. 6.734.366 SSP/SP and enrolled in the TIN (CPF/MF) under No. 767.865.798-68,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Prof. Arthur Ramos, No. 515, 5o andar, holder of 501,600 ordinary shares
issued by Sadia S.A.;

 

19.                              ANDRÉ FONTANA CARVALHO, a Brazilian citizen, single,
student, holder of the ID RG No. 3.856.007 SSP/SC and enrolled in the TIN
(CPF/MF) under No. 047.735.808-01, resident and domiciled in the City of
São Paulo, State of São Paulo, at Rua Massacá, No. 325, Edifício Emilion,
apartamento 11, owner of 158,376 ordinary shares issued by Sadia S.A.;

 

20.                              ITÁLIA BORDIN
FONTANA, a Brazilian citizen, widow, homemaker, holder of the ID RG No. 14/R.128.366
SSP/SC and enrolled in the TIN (CPF/MF) under No. 723.564.649-72, resident
and domiciled in the City of Concórdia, State of Santa Catarina, at Rua Romano
Ancelmo Fontana, No. 575, holder of 28,966 ordinary shares issued by Sadia
S.A.;

 

21.                              ONEIDA MARIA
SCHNITZER FONTANA, a Brazilian citizen, widow, homemaker, holder of the ID RG No. 3.718.043-5
SSP/SP and enrolled in the TIN (CPF/MF) under No. 212.690.148-38, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Tucumã, No. 471,
apartamento 111, holder of 5,497,122 ordinary shares issued by Sadia S.A.;

 

22.                              JOÃO DOMINGOS
FONTANA, a Brazilian citizen, divorced, physician, holder of the ID RG No. 70.209.395-71
SSP/RS and enrolled in the TIN (CPF/MF) under No. 525.438.037-34, resident
and domiciled in the City of Porto Alegre, State of Rio Grande do Sul, at
Avenida Independência, No. 855, apartamento 1101, owner of 2,168,967
ordinary shares issued by Sadia S.A.;

 

23.                              JOSÉ CARLOS
FONTANA, a Brazilian citizen, married, zootechnist, holder of the ID RG No. 14/R.143.602
SSP/SC and enrolled in the TIN (CPF/MF) under No.

 

3

 

295.280.209-25,
resident and domiciled in the City of Toledo, State of Paraná, at Rua Serafina
Correia, No. 1019, owner of 2,855,788 ordinary shares issued by Sadia
S.A.;

 

24.                              MARCELO FONTANA,
a Brazilian citizen, married, systems analyst, holder of the ID RG No. 17.924.408
SSP/SP and enrolled in the TIN (CPF/MF) under No. 460.201.369-49, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Borba Gato,
331 — ap. 123C, owner of 2,337,157 ordinary shares issued by Sadia S.A.;

 

25.                              MARIA APARECIDA
FONTANA MINCARONI, a Brazilian citizen, married, businesswoman, holder of the
ID RG No. 14/R.841.762 SSP/SC and enrolled in the TIN (CPF/MF) under No. 503.872.199-00,
resident and domiciled in the City of Concórdia, State of Santa Catarina, at
Rua Romano Ancelmo Fontana, No. 617, holder of 2,414,346 ordinary shares
issued by Sadia S.A.;

 

26.                              VERA LÚCIA
FONTANA, a Brazilian citizen, judicially separated, businesswoman, holder of
the ID RG No. 35.711.000-6 SSP/SP and enrolled in the TIN (CPF/MF) under No. 296.337.688-02,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Massacá, 325 — ap. 52, holder of 4,399,027 ordinary shares issued by Sadia
S.A.;

 

27.                              FLÁVIO FONTANA
MINCARONI, a Brazilian citizen, single, of age, business administrator, holder
of the ID RG No. 1.140.838 SSP/SC and enrolled in the TIN (CPF/MF) under No. 503.832.219-00,
resident and domiciled in the City of Concórdia, State of Santa Catarina, at
Rua Romano Ancelmo Fontana, No. 617, owner of 1,000 ordinary shares issued
by Sadia S.A.;

 

28.                              DANIEL FONTANA SCHMIDT, a Brazilian citizen, single,
business administrator, holder of the ID RG No. 27.846.721-0 SSP/SP and
enrolled in the TIN (CPF/MF) under No. 289.682.088-40, resident and
domiciled in the City of São Paulo, State of São Paulo, at Rua Morás, No. 558,
apartamento 72, owner of 100 ordinary shares issued by Sadia S.A.;

 

29.                              ANDRÉ BELEZA FONTANA, a Brazilian citizen, single, lawyer, holder
of the ID RG No. 7.322.522-1 SSP/PR and enrolled in the TIN (CPF/MF) under
No. 028.794.389-50, resident and domiciled in the City of Porto Alegre,
State of Rio Grande do Sul, at Rua Anita Garibaldi, No. 1226, apartamento
1204, owner of 100 ordinary shares issued by Sadia S.A.;

 

30.                              PATRÍCIA BELEZA FONTANA, a Brazilian citizen, single, designer,
holder of the ID RG No. 7.322.525-5 SSP/PR and enrolled in the TIN
(CPF/MF) under No. 035.652.529-52, resident and domiciled in the City of
Gramado, State of Rio Grande do Sul, at
Rua Augusto Zatti, No. 355, apartamento 103, holder of 100 ordinary
shares issued by Sadia S.A.;

 

31.                              OLIVER FONTANA,
a Brazilian citizen, married, lawyer, holder of the ID RG No. 19.426.740-4
SSP/SP and enrolled in the TIN (CPF/MF) under No. 175.185.188-

 

4

 

56,
resident and domiciled in the City of São Paulo, State of São Paulo, at Avenida
Angélica, No. 2118 - 7o andar, owner of 308 ordinary shares issued by
Sadia S.A.;

 

32.                              ALEXANDRE
FONTANA SCHMIDT, a Brazilian citizen, married, engineer, holder of the ID RG No. 27.846.722-2
e do CPF/MF under No. 215.785.148-86, resident and domiciled in the City
of São Paulo, State of São Paulo, at Rua Iara, No. 123, apartamento 161,
owner of 100 ordinary shares issued by Sadia S.A.;

 

33.                              PEDRO ALBERTO
FONTANA, a Brazilian citizen, married, businessman, holder of the ID RG No. 01.942.829-1
IFP/RJ and enrolled in the TIN (CPF/MF) under No. 026.775.047-15, resident
and domiciled in the City of Rio de Janeiro, State of Rio de Janeiro, at Rua
Guapeni, No. 53, apartamento 301, owner of 1,835,950 ordinary shares
issued by Sadia S.A.;

 

34.                              ODEON ANTÔNIO
FONTANA, a Brazilian citizen, married, accounting technician, holder of the ID
RG No. 712.743 SSP/DF and enrolled in the TIN (CPF/MF) under No. 001.564.501-00,
resident and domiciled in the City of Ribeirão Preto, State of São Paulo, at
Rua José da Silva, No. 887, owner of 1,009,285 ordinary shares issued by
Sadia S.A.;

 

35.                              SANDRA MARIA
FONTANA, a Brazilian citizen, married, business owner, holder of the ID RG No. 236.404
SSP/DF and enrolled in the TIN (CPF/MF) under No. 183.268.498-98, resident
and domiciled in the City of Ribeirão Preto, State of São Paulo, at Rua José da
Silva, No. 887, holder of 443,860 ordinary shares issued by Sadia S.A.;

 

36.                              RENATA FONTANA
PUSSET, a Brazilian citizen, married, businesswoman, holder of the ID RG No. 4.222.002
SSP/SP and enrolled in the TIN (CPF/MF) under No. 033.297.438-32, resident and
domiciled in the City of São Paulo, State of São Paulo, at Rua Cardoso de Mello
Júnior, No. 96, holder of 1,065,699 ordinary shares issued by Sadia S.A.;

 

37.                              MARINA FONTANA,
a Brazilian citizen, judicially separated, decorator, holder of the ID RG No. 4.222.001
SSP/SP and enrolled in the TIN (CPF/MF) under No. 178.280.868-06, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Cardoso de
Mello Júnior, No. 140, holder of 622,053 ordinary shares issued by Sadia
S.A.;

 

38.                              ROBERTO PUSSET,
a Brazilian citizen, single, student, holder of the ID RG No. 30.802.000-5
SSP/SP and enrolled in the TIN (CPF/MF) under No. 328.019.368-04, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Cardoso de
Mello Júnior, No. 96, owner of 10,000 ordinary shares issued by Sadia S.A.;

 

39.                              SOELY MACHADO FONTANA, a Brazilian citizen, widow, homemaker,
holder of the ID RG No. 587.757 SSP/DF and enrolled in the TIN (CPF/MF) under
No.

 

5

 

111.408.799-87,
resident and domiciled in the City of Londrina, State of Paraná, at Rua Piauí, No. 235,
ed. 204, holder of 288,815 ordinary shares issued by Sadia S.A.;

 

40.                              ROBERTO HOPPNER FONTANA, a Brazilian citizen, married, business
administrator, holder of the ID RG No. 04.822.824-1 DETRAN/RJ and enrolled
in the TIN (CPF/MF) under No. 755.293.357-72, resident and domiciled in
the City of São Paulo, State of São Paulo, at Rua Dr. Miranda de Azevedo, No. 752,
apartamento 122, owner of 31,338 ordinary shares issued by Sadia S.A.;

 

41.                              JULIANA FONTANA
PUSSET, a Brazilian citizen, single, chef, holder of the ID RG No. 30.803.000-X
and enrolled in the TIN (CPF/MF) under No. 288.400.158-17, resident and
domiciled in the City of São Paulo, State of São Paulo, at Rua Cardoso de Melo
Júnior, No. 96, holder of 1,000 ordinary shares issued by Sadia S.A.;

 

42.                              NELSON FELIPE
KHEIRALLAH FILHO, a Brazilian citizen, married, lawyer, holder of the ID RG No. 33.055.701-4
and enrolled in the TIN (CPF/MF) under No. 220.715.458-00, resident and
domiciled in the City of São Paulo, State of São Paulo, na Alameda Tietê, No. 312,
apartamento 113, owner of 1,000 ordinary shares issued by Sadia S.A.;

 

43.                              CRISTIANO
FONTANA KHEIRALLAH, a Brazilian citizen, single, architect, holder of the ID RG
No. 33.058.702-6 and enrolled in the TIN (CPF/MF) under No. 219.724.428-05,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Maestro Chiafarelli, No. 116, owner of 1,000 ordinary shares issued by
Sadia S.A.;

 

44.                              OLD PARTICIPAÇÕES LTDA., a limited liability company organized as an
entrepreneurial company, with its head office in the City of São Paulo, State
of São Paulo, at Rua Dr. Veiga Filho, No. 350, conjunto 1301,
enrolled in the TIN (CPF/MF) under No. 60.606.845/0001-57, represented
herein in accordance with its Articles of Association, holder of 26,751,658
ordinary shares issued by Sadia S.A.;

 

45.                              LUCY FONTANA FURLAN, a Brazilian citizen, married,
businesswoman, holder of the ID RG No. 2.930.531 SSP/SP and enrolled in
the TIN (CPF/MF) under No. 019.514.408-20, resident and domiciled in the
City of São Paulo, State of São Paulo, at Rua Maranhão, No. 690, 17o
andar, holder of 2.178.832 ordinary shares issued by Sadia S.A.;

 

46.                              OSÓRIO HENRIQUE FURLAN JÚNIOR, a Brazilian citizen,
married, lawyer, holder of the ID RG No. 2.985.144 SSP/SP and enrolled in
the TIN (CPF/MF) under No. 019.490.478-49, resident and domiciled in the
City of São Paulo, State of São Paulo, at Rua Aracaju, No. 201, 22o andar,
owner of 11,956,152 ordinary shares issued by Sadia S.A.;

 

47.                              LUIZ FERNANDO FURLAN, a Brazilian citizen, married, chemical
engineer, holder of the ID RG No. 2.985.393 SSP/SP and enrolled in the TIN
(CPF/MF) 

 

6

 

under
No. 019.489.978-00, resident and domiciled in the City of Barueri, State
of São Paulo, at Alameda Escócia, No. 275, owner of 10,652,800 ordinary
shares issued by Sadia S.A.;

 

48.                              DIVA HELENA FURLAN, a Brazilian citizen, married, lawyer, holder of
the ID RG No. 2.985.455-6 SSP/SP and enrolled in the TIN (CPF/MF) under No. 023.323.648-11,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Piauí, No. 900, 9o andar, holder of 647,346 ordinary shares issued by
Sadia S.A.;

 

49.                              LUCILA MARIA FURLAN, a Brazilian citizen, divorced, business
administrator, holder of the ID RG No. 2.987.386-1 SSP/SP and enrolled in
the TIN (CPF/MF) under No. 680.567.538-34, resident and domiciled in the
City of São Paulo, State of São Paulo, at Rua Piauí, No. 1234, 9o andar,
holder of 866,817 ordinary shares issued by Sadia S.A.;

 

50.                              LEILA MARIA FURLAN DA SILVA TELLES, a Brazilian citizen,
married, business administrator, holder of the ID RG No. 2.987.376-9
SSP/SP and enrolled in the TIN (CPF/MF) under No. 051.026.578-28, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Bahia, No. 254,
5o andar, holder of 1,042,434 ordinary shares issued by Sadia S.A.;

 

51.                              ANA MARIA GONÇALVES FURLAN, a Brazilian citizen,
married, plastic artist, holder of the ID RG No. 5.130.009 SSP/SP and
enrolled in the TIN (CPF/MF) under No. 160.846.148-33, resident and
domiciled in the City of Barueri, State of São Paulo, at Alameda Escócia, No. 275,
holder of 171,925 ordinary shares issued by Sadia S.A.;

 

52.                              MARCELA PASSOS FURLAN, a Brazilian citizen, divorced, businesswoman,
holder of the ID RG No. 17.470.111-1 SSP/SP and enrolled in the TIN
(CPF/MF) under No. 271.742.878-08, resident and domiciled in the City of
São Paulo, State of São Paulo, at Rua Piauí, No. 461, 6o andar, holder of
26,300 ordinary shares issued by Sadia S.A.;

 

53.                              GABRIELLA FURLAN VILLARES, a Brazilian citizen,
married, business administrator, holder of the ID RG No. 14.845.049-1
SSP/SP and enrolled in the TIN (CPF/MF) under No. 213.016.908-21, resident
and domiciled in the City of Barueri, State of São Paulo, at Alameda França, No. 117,
holder of 142,597 ordinary shares issued by Sadia S.A.;

 

54.                              LUIZ GOTARDO FURLAN, a Brazilian citizen, single, business
administrator, holder of the ID RG No. 34.441.551-X SSP/SP and enrolled in
the TIN (CPF/MF) under No. 329.669.418-80, resident and domiciled in the
City of Barueri, State of São Paulo, at Alameda Escócia, No. 275, owner of
214,851 ordinary shares issued by Sadia S.A.;

 

7

 

55.                              ANDRÉ MONEGAGLIA, a Brazilian citizen, single, engineer, holder of
the ID RG No. 19.233.674-5 SSP/SP and enrolled in the TIN (CPF/MF) under No. 151.572.678-94,
resident and domiciled in the City of São Paulo, State of São Paulo, at Praça
Vilaboim, No. 52, apartamento 61, owner of 18,478 ordinary shares issued
by Sadia S.A.;

 

56.                              CAROLINA FURLAN UCHÔA CAVALCANTI, a Brazilian citizen,
married, advertising professional, holder of the ID RG No. 32.422.888-0
SSP/SP and enrolled in the TIN (CPF/MF) under No. 222.583.578-02, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Bahia, No. 350,
7o andar, holder of 3,740 ordinary shares issued by Sadia S.A.;

 

57.                              MARIA FURLAN DA SILVA TELLES, a Brazilian citizen,
single, public relations, holder of the ID RG No. 33.162.993-8 SSP/SP and
enrolled in the TIN (CPF/MF) under No. 309.318.778-81, resident and
domiciled in the City of São Paulo, State of São Paulo, at Rua Pamplona, No. 1585,
apartamento 63, holder of 15,000 ordinary shares issued by Sadia S.A.;

 

58.                              JOÃO FURLAN DA SILVA TELLES, a Brazilian citizen,
single, advertising professional, holder of the ID RG No. 33.162.992-6
SSP/SP and enrolled in the TIN (CPF/MF) under No. 331.172.648-09, resident
and domiciled in the City of São Paulo, State of São Paulo, at Rua Bahia, No. 254,
5o andar, owner of 15,000 ordinary shares issued by Sadia S.A.;

 

59.                              MANOELA
MONEGAGLIA, a Brazilian citizen, married, business administrator, holder of the
ID RG No. 23.087.571-3 and enrolled in the TIN (CPF/MF) under No. 270.340.018-71,
resident and domiciled in the City of São Paulo, State of São Paulo, at Alameda
Casa Branca, No. 1177 — 6C, holder of 2,432 ordinary shares issued by
Sadia S.A.; and

 

60.                              FELIPE
MONEGAGLIA, a Brazilian citizen, single, advertising professional, holder of
the ID RG No. 25.555.055-8 and enrolled in the TIN (CPF/MF) under No. 266.129.168-77,
resident and domiciled in the City of São Paulo, State of São Paulo, at Rua
Piauí, No. 900, 9o andar, owner of 239 ordinary shares issued by Sadia
S.A.;

 

all of the above parties being hereinafter
referred to merely as “Agreeing Shareholders” or, when referred to individually
merely as “Agreeing Shareholder”.

 

and
further, in the capacity of consenting intervening parties or as party to this
Agreement, as the case may be.

 

61.                              SADIA S.A., a
publicly-held company with its head office in the City of Concórdia, State of
Santa Catarina, at Rua Senador Attilio Fontana, No. 86, enrolled in the
National Register of Corporate Taxpayers/Ministry of Finance - CNPJ/MF under No. 20.730.099/0001-94,
represented herein in accordance with its By-Laws, hereinafter referred to
merely as “Sadia” or the “Company”).

 

8

 

62.                              CONCÓRDIA
HOLDING FINANCEIRA S.A., a joint stock corporation with its head office in the
City of São Paulo, State of São Paulo, at Avenida Rebouças, no 3970, 10o andar,
Cj.-A, enrolled in the Ministry of Finance National Register of Corporate
Taxpayers (CNPJ/MF) under No. 08.944.820/0001-43, represented herein in
accordance with its Bylaws, hereinafter referred to merely as “Concórdia
Holding Financeira” and jointly with the Company as “the Consenting Parties”;

 

63.                              CONCÓRDIA BANCO
S.A., a private banking financial institution, with its head office in the City
and State of São Paulo, at Av. Rebouças, 3970 — 10o andar, enrolled in the
Ministry of Finance National Register of Corporate Taxpayers (CNPJ/MF) under No. 10.264.663/0001-77,
represented herein in accordance with its Bylaws, hereinafter referred to
merely as “Concórdia Banco” and jointly with the Company as “the Consenting
Parties”;

 

64.                              CONCÓRDIA S/A CORRETORA DE VALORES MOBILIÁRIOS, CÂMBIO E COMMODITIES, with its head
office in the Capital of the State of São Paulo, at Rua Líbero Badaró, no 425,
23o andar, enrolled in the Ministry of Finance National Register of Corporate
Taxpayers (CNPJ/MF) under No. 52.904.364/0001-08, represented herein in
accordance with its Bylaws, hereinafter referred to merely as “Concórdia
Corretora” and jointly with the Company as “the Consenting Parties”;

 

WHEREAS:

 

(i)                                  some
shareholders have withdrawn from the controlling group of this Company upon
accepting the release of the total number of their shares issued by the
Company, in accordance with the provisions of Paragraph 6.6 (g) of this
Agreement;

 

(ii)                               the
shareholders Ruth Escorel Fontana, Augusto Escorel Fontana, Sofia Escorel
Fontana, Diogo Leal Fontana, Felipe Boturão D’Avila, Daniel Boturão D’Avila,
André Fontana Carvalho, Daniel Fontana Schmidt, André Beleza Fontana, Patrícia
Beleza Fontana, Oliver Fontana, Alexandre Fontana Schmidt, Soely Machado
Fontana, Roberto Hoppner Fontana, Juliana Fontana Pusset, Nelson Felipe
Kheirallah Filho, Cristiano Fontana Keirallah, Old Participações Ltda., Lucy
Fontana Furlan, Osório Henrique Furlan Júnior, Luiz Fernando Furlan, Diva
Helena Furlan, Lucila Maria Furlan, Leila Maria Furlan da Silva Telles, Ana
Maria Gonçalves Furlan, Marcela Passos Furlan, Gabriella Furlan Villares, Luiz
Gotardo Furlan, André Monegaglia, Carolina Furlan Uchoa Cavalcanti, Maria
Furlan da Silva Telles, João Furlan da Silva Telles, Manoela Monegaglia and
Felipe Monegaglia, all of them identified above, have the intention of adhering
to this Agreement and this is agreed by the current Agreeing Shareholders.

 

(iii)                            the Brazilian
Central Bank authorized the incorporation and operation of the Concórdia Banco
S.A., as a wholly-owned subsidiary of Concórdia Holding Financeira. The latter
is controlled by this Company and this requires an amendment to the Agreement
in order to comply with certain provisions of legislation applicable to
financial institutions headquartered in Brazil;

 

9

 

In
view of the above considerations, the Agreeing Shareholders RESOLVE, by means
of this instrument, to formalize the admission of the shareholders named under
the above (ii) whereas to the Shareholders’ Agreement of this Company
(hereinafter referred to merely as “the Agreement”) and also to amend and make
additions to the Agreement, in accordance with the terms and conditions
consolidated below, and therefore the Agreement will be effective with the
clauses and conditions below and any and all provisions to the contrary are
expressly revoked, namely:

 

SADIA
S.A.

 

SHAREHOLDERS’
AGREEMENT

 

CHAPTER
I — SHARES BOUND TO THIS AGREEMENT

 

1.1.                           This Agreement
is binding upon all ordinary shares of the Company currently held by the
Agreeing Shareholders, as well as upon all of the shares that they may come to
hold in the future, either by “inter vivos” or “mortis causa” acquisition, for
compensation or gratuitously, by subscription in capital increases using cash,
assets, rights or credits or by bonus and splitting or in any other form. The
bound shares are hereinafter referred to as the “Affected Shares”.

 

1.1.1.                  Every quarter, the
Coordinator of this Agreement shall obtain from the Company an updated list of
the title holders of the Affected Shares, at the Agreeing Shareholders’ cost.

 

1.2.                           For the purpose
of maintaining the same current shareholding percentage interest in the Affected
Shares among the Agreeing Shareholders and/or Groups of Agreeing Shareholders
(as defined below), the Agreeing Shareholders assume the commitment of making
their best efforts to match all capital increase subscriptions made by the
Company, in relation to the ordinary shares.

 

CHAPTER
II — ADHERENCE TO THIS AGREEMENT

 

2.1.                           Adherence to
this Agreement is obligatory and automatic for:

 

a)                                   necessary heirs
(art. 1.845 of the Civil Code), regardless of the way of acquisition of the
Affected Shares by the heirs; and

 

b)                                  the venture
capital company of which the Agreeing Shareholder is the controlling
shareholder (in accordance with definition in art. 116 of Law No. 6404,
dated December 15, 1976) and to which the Affected Shares have been
transferred in total or partially.

 

2.2.                           All and any
other adherences, including those relating to the Affected Shares derived from
the marital dissolution of any Agreeing Shareholder (except in the case 

 

10

 

of
death of one of the spouses, in which case this would fall under item (a) of
the above Paragraph 2.1), will be conditional upon prior and express
authorization of the Agreeing Shareholders, in accordance with the provisions
hereunder.

 

2.3.                           Adherence by
necessary heirs does not automatically affect the ordinary shares issued by the
Company and held by them and which, at the time, are not Affected Shares,
unless those heirs express clearly their will that such shares become Affected
Shares.

 

CHAPTER
III — GROUPS OF AGREEING SHAREHOLDERS

 

3.1.                           For all
purposes hereunder, the Agreeing Shareholders are grouped as shown on the
Attachment hereof, hereinafter referred to as “Agreeing Shareholders Groups” or
“Groups”. Such Attachment is an integral part of this Agreement.

 

3.2.                           Any Agreeing
Shareholder, upon prior and written notice to the Agreement Coordinator, who
shall forward a copy to the other Agreeing Shareholders, may, at any time, move
from one Agreeing Shareholders Group to the other or even form a new Agreeing
Shareholders Group with other Agreeing Shareholders. Throughout the term of
this Agreement, the move to an Agreeing Shareholders Group or the creation of a
new group will not imply the loss, by the Agreeing Shareholders Group from
which the Agreeing Shareholder withdrew, or by the Agreeing Shareholder who
waived its initial preemptive right, i.e., the right contemplated in Paragraph
8.3 of this Agreement. If and when this Agreement is automatically renewed, as
contemplated in Paragraph 12.1, all and any Agreeing Shareholders Group will be
entitled to restructuring within the first sixty (60) days from the beginning
of any period of validity of this Agreement without keeping the initial
preemptive right of the Agreeing Shareholders’ Group from which one or more
Agreeing Shareholder(s) left or by the Agreeing Shareholders who withdrew.

 

3.3.                           The Agreeing
Shareholders Groups are represented by one of its members, hereinafter referred
to as Representative, for all purposes hereunder, and in its absence, by a
deputy. The appointment of a Representative and of its deputy must be informed
in writing to the Agreement Coordinator by the respective Group of Agreeing
Shareholders, within fifteen (15) days counted as from the appointment. If no
appointment is made, the Agreement Coordinator shall accept as Representative
whoever submits evidence of the required representation, provided that this is
satisfactory to the Agreement Coordinator, and in this case the Group of
Agreeing Shareholders shall be obliged to accept, on an irrevocable and
unconditional basis, the nomination made by the Agreement Coordinator.

 

3.4.                           Each Group of
Agreeing Shareholders shall make its best efforts to ensure that its
Representative and deputy are not the administrators of the Company or of its
affiliates.

 

11

 

CHAPTER IV – AGREEMENT COORDINATOR

 

4.1.          The duties of
the Agreement Coordinator or, in its absence or incapacitation, of its deputy
are:

 

a)                                     represent all Groups of Agreeing Shareholders at the Company’s General
Meeting of Shareholders, to which it may be accompanied by one or more
Representatives or even advisors;

 

b)                                    call and
preside at the Agreement Meetings;

 

c)                                     act as liaison among the Groups of Agreeing Shareholders Groups in
relation to the matters contemplated in this Agreement and observing all the rules and
procedures established in this Agreement;

 

d)                                    act as liaison among the Agreeing Shareholders and the Company, always
through the Chairman of the Board of Directors to give or receive information;

 

e)                                     coordinate the exercise of the preemptive right as established in
Chapter VIII of this Agreement; and

 

f)                                       comply with and enforce compliance with the annual budget of this
Agreement, approved at the Agreement Meeting, and take on responsibility for
it.

 

4.2.          At the
Agreement Meeting especially called for this purpose, the Representatives shall
elect, among themselves, the Agreement Coordinator and its deputy, who may be
compensated, if so resolved at this meeting or at a later meeting.

 

4.3.          The Agreement
Coordinator and its deputy cannot be administrators of the Company or of its
affiliates.

 

4.4.          The Agreement
Meeting may remove the Agreement Coordinator and/or its deputy at any time and
without cause.

 

4.5.          The term of
office of the Agreement Coordinator and of its deputy will be two (2) years;
reelection is not permitted.

 

CHAPTER V – BASIC PRINCIPLES

 

5.1.          The Agreeing
Shareholders commit to ensure that the Company and the relationship among the
Agreeing Shareholders, as the case may be, be governed in accordance with the
following basic principles:

 

a)                                     the Company will be managed for the main purpose of generating profits,
keeping in view its best interest, which will always prevail over specific
interest of the Shareholders, in case of conflict;

 

12

 

b)                                    the Board of Directors of the Company shall set up, every year,
performance goals to create value and to increase the Company’s worth at the
Stock Exchanges, ensuring that the best corporate governance principles be
observed by Management;

 

c)                                     the Company’s management must always pursue high efficiency,
productivity, competitiveness and profitability levels and shall act on an
autonomous basis;

 

d)                                    the Company’s management must always maintain effective control
instruments and modern management models;

 

e)                                     the strategic decisions made by the Company must take into account the
interest of the Agreeing Shareholders in preserving the purpose of the Company
and in maximizing the return on their investments and, further, in following a
realistic and consistent dividend policy.

 

f)                                       the capital structure of the Company must observe the parameters to be
established by the Board of Directors, so as to reflect a sound financial
condition, always taking into account the need to prioritize the allocation of
its own resources for investment programs;

 

g)                                    the Executive Board will be formed, to the extent possible, solely by
professional executives;

 

h)                                    the Company’s management shall make all efforts to maintain the Company
as a publicly-open company and to maintain an adequate number of outstanding
shares, to always ensure the liquidity of its own issued securities;

 

i)                                        the relationship of the Agreeing Shareholders among themselves and with
the Company will be governed by a code of conduct approved by the Agreement
Meeting; and

 

j)                                        the obligations established in Chapter XV will persist throughout the
time during which the Agreeing Shareholders are indirect controlling
shareholders of financial institutions and, in case of conflict, will prevail
over the remaining terms and conditions of this Agreement.

 

5.2.          The Groups of
Agreeing Shareholders are obliged to commit their votes at the General Meetings
of Shareholders, as well as the votes of their Representatives at the Board of
Directors, to ensure observance of the basic principles established in the
above Paragraph 5.1.

 

13

 

CHAPTER VI – AGREEMENT MEETING

 

6.1.          The Agreement
Meetings will be held as follows:

 

a)                                     Quarterly meetings attended by all interested Agreeing Shareholders, to
keep them abreast of the Company’s activities and results, referred to as “Informational
Meetings”;

 

b)                                    Prior meetings attended by the Representatives, to be held before each
General Meeting of Shareholders, and of which Meeting of the Board of
Directors, for the purpose of making an advance decision about all matters
submitted to the appreciation of the General Meeting or of the Board of
Directors, as the case may be, and set forth the prevailing guidance and the
express direction in which the Agreement Coordinator or the members of the
Board of Directors, as the case may be, will vote at the General Meeting or at
the Meeting of the Board of Directors, hereinafter referred to as “Advance
Meetings”;

 

c)                                     Meetings attended by the Representatives to discuss all and any other
matter relating to this Agreement, hereinafter referred to as “Special Meetings”.

 

6.2.          The
Informational Meetings will be held in accordance with a calendar prepared in
the beginning of the calendar year by the Agreement Coordinator and may be
attended by one or more Company administrators, as requested by the Agreement
Coordinator to the Chairman of the Board of Directors.

 

6.3.          The Advance
Meetings and the Special Meetings will be called by the Agreement Coordinator,
on its own initiative or at the request of any of the Representatives, by fax
or any other written communication means, upon acknowledgment of receipt, five (5) consecutive
days in advance.  A call will be sent to
the Representatives of the Groups of Agreeing Shareholders and their deputies
and it will include the place, date and time of the meeting and describe
briefly and clearly all matters to be discussed. If the Agreement Coordinator
fails to call an Agreement Meeting within seven (7) consecutive days of
the date on which a request to do it is received from any Representative, this
Representative is authorized to call the Agreement Meeting.

 

6.4.          The Advance
Meetings and the Special Meetings will be convened, at first call, with the
attendance of Representatives totaling a minimum of sixty-six percent (66%) of
the Affected Shares, and, at a second call, within one hour (1 h) after the
scheduled time, with the attendance of Representatives totaling at least more
than fifty percent (50%) of the Affected Shares.

 

6.4.1.       The
Representatives may be represented by their respective deputies, or by specific
proxies granted to another Representative or deputy or even by written and
specific vote, and then they will be considered present both for quorum and
deliberative purposes.

 

14

 

6.4.2.                    In addition to
the Representative, a person related to each Group of Agreeing Shareholders may
attend the Advance Meetings and the Special Meetings, as observer, with no
right to vote or to express any opinion.

 

6.4.3.                    Whenever
attending the Advance Meetings, a Representative may be accompanied by an
advisor with no right to vote or to voice any opinion. The advisor may stay in
the meeting room during the period in which the agenda requires such
presence.  If any doubt arises, the
Agreement Coordinator shall make a decision about it.

 

6.5.          Each Affected
Action will correspond to one vote in the resolutions at the Advance Meetings
and at the Special Meetings.

 

6.6.          Resolutions
will be made at the Advance Meetings and at the Special Meetings by title
holders of more than fifty percent (50%) of the Affected Shares, except for the
matters listed below, which require at least sixty-six percent (66%) of the
Affected Shares:

 

a)                                     election or removal of the Agreement Coordinator or of its deputy;

 

b)                                    whether or not to fix a compensation for the Agreement Coordinator and
for its deputy;

 

c)                                     engagement of advisory consultants and fixing their respective fees;

 

d)                                    whether or not to approve any kind of partnership, alliance, merger or
amalgamation of the Company with other company or companies, even if
competitors of the Company, of the terms and conditions of the respective
agreement, of the amendments to this Agreement that such partnership, alliance,
merger or amalgamation could require, as well as entering into any other
Shareholders Agreement between the Agreeing Shareholders and third parties;

 

e)                                     admission of new Agreeing Shareholders, and the establishment of
specific requisites for such admission, while observing the provisions in
Chapter II of this Agreement;

 

f)                                       modification in the procedure relating to preemptive right established
in Chapter VIII of this Agreement, in the case contemplated in Paragraph 8.13
below;

 

g)                                    request for
removal of any Agreeing Shareholder from this Agreement;

 

h)                                    request for releasing some of the Affected Shares owned by one or more
than one Agreeing Shareholders, and

 

15

 

i)             authorization for voluntary encumbrance of the Affected Shares.

 

6.7.          The resolutions
made at the Advance Meetings and at the Special Meetings bind all the Groups of
Agreeing Shareholders and their votes including those whose Representatives
have not attended them or have abstained from voting.

 

6.8.          Minutes of the
Advance Meetings and of the Special Meetings will be issued and then signed by
all Representatives considered as present or by as many Representatives as
deemed sufficient for making resolutions. The minutes will include a summary of
the approved resolutions and establish the prevailing guidance and express
direction whereby the Agreement Coordinator may vote in relation to the
totality of the Affected Shares at the Company’s General Meeting of
Shareholders. The minutes will also set forth a vote guidance for the members
of the Board of Directors elected upon the nomination of the Agreeing
Shareholders in relation to all matters submitted to the Meetings of the Board
of Directors.

 

6.8.1.       To ensure that
the decisions made by the Agreeing Shareholders at Advance Meetings and Special
Meetings will be observed and adopted, where applicable, by the Company’s
affiliates, particularly by Concórdia Holding Financeira and its affiliates,
Concórdia Banco S.A. (“Concórdia Banco”) and Concórdia S.A. Corretora de
Valores Mobiliários, Câmbio e Commodities (“Concórdia Corretora”), the
Agreement Coordinator shall (i) provide written express direction on how
the Company’s legal representatives will exercise their voting rights at the
General Meeting of Shareholders of Concórdia Holding Financeira in relation to
the total shares issued by Concórdia Holding Financeira and owned by the
Company and (ii) set forth a vote guidance for the Members of the Board of
Directors of Concórdia Holding Financeira elected upon a nomination by the
Company, in relation to all matters submitted to the Meetings of the Board of
Directors of Concórdia Holding Financeira, in conformity with the provisions in
Paragraph 2 of Art. 243 of Law No. 6404/76.

 

6.8.2.       Likewise, the
Agreement Coordinator shall cause the Company’s legal representatives to: (i) provide
written express direction on how the legal representatives of Concórdia Holding
Financeira will exercise their voting rights at the General Meeting of
Shareholders of Concórdia Banco and of Concórdia Corretora in relation to the
total shares issued by Concórdia Banco and by Concórdia Corretora and owned by
Concórdia Holding Financeira and (ii) set forth a vote guidance for the
Members of the Board of Directors of Concórdia Banco and of Concórdia Corretora
elected upon a nomination by Concórdia Holding Financeira, in relation to all
matters submitted to the Meetings of the Board of Directors of Concórdia Banco
and of Concórdia Corretora, in conformity with the provisions in Paragraph 2 of
Art. 243 of Law No. 6404/76.

 

6.9.          The Advance
Meetings held prior to the Shareholders Meeting shall make a resolution about
the nominations to be made by the Agreement Coordinator to

 

16

 

represent the Agreeing
Shareholders in the Board of Directors, when applicable. Each Group of Agreeing
Shareholders will be represented in the Board of Directors proportionately to
the number of Affected Shares and taking into consideration the number of Board
of Directors members that the Agreeing Shareholders are entitled to elect.

 

6.9.1.                    In any case,
the Agreeing Shareholders are bound to exercise their respective voting rights
at the Company’s General Meeting of Shareholders so as to elect the majority of
the members to the Board of Directors and, consequently, to the Company’s
Executive Board.

 

6.9.2.                    The
Groups of Agreeing Shareholders may freely aggregate their Affected Shares
among them to ensure the nomination of individuals to be elected to the Board
of Directors.

 

6.9.3.                    The
Groups of Agreeing Shareholders shall make their best efforts to elect, reelect
or maintain, as their Representatives in the Board of Directors, individuals
with the following minimum characteristics:

 

a)                                     be, at least, thirty (30) full years old;

 

b)                                    have an unblemished reputation;

 

c)                                     hold no executive, deliberative or advisory position in a competitive
company or in affiliates of a competitive company;

 

d)                                    have experience and educational level compatible with the function;

 

e)                                     be familiar with the principles of good corporate governance;

 

f)                                       be familiar with the activities of the Company and its affiliates; and

 

g)                                    be familiar with the principles established in Chapter V of this
Agreement;

 

6.10.        The first
Agreement Meeting to be held in each fiscal year will approve a budget for this
Agreement, to be incurred by all Groups of Agreeing Shareholders,
proportionately to the holdings of each group in the total number of Affected
Shares.

 

CHAPTER
VII – EXERCISING THE VOTING RIGHT

 

7.1.          Each one of the
Groups of Agreeing Shareholders shall vote at the Advance Meetings or Special
Meetings in a uniform manner and as a block, through its Representative or its
deputy, as set forth in the Agreement. Evidence of the corresponding resolution
may be demanded by the Agreement Coordinator. 
(remainder excluded)

 

17

 

In case of doubt, the vote
of the Group of Agreeing Shareholders that does not submit evidence of uniform
voting of this resolution will not be counted and this will not affect the
calculation of the quorum for convening any Agreement Meeting.

 

7.2.          The Agreement
Coordinator shall hand to the Chairman of the General Meeting of Shareholders a
copy of the Resolution made at the Advance Meeting.

 

7.3.          At the time of
the Shareholders Meetings, the Agreement Coordinator shall exercise its voting
right on behalf of the Groups of Agreeing Shareholders, always in one sole
direction and uniformly, in accordance with the resolution passed at the
Advance Meeting and duly recorded in the minutes.

 

7.3.1.                    An
Agreeing Shareholder is prohibited from voting individually at the Shareholders
Meetings, regardless of its Representative having attended or not the
respective Advance Meeting, or having voted to the contrary or even having
abstained from voting.

 

7.3.2.                    Any
vote infringing this Agreement will be null in relation to the Company and the
Chairman of the General Meeting of Shareholders cannot count it, as provided
for in the corporate legislation.

 

7.4.          If a Shareholders
Meeting is held without an Advance Meeting having been held prior to it, the
Agreement Coordinator will vote to adjourn the session for the time required to
hold an Advance Meeting for deliberation. If this case occurs, the Agreement
Coordinator shall call an Advance Meeting to discuss the matters in the agenda
of the General Meeting of Shareholders in the manner established in this
Agreement within forty-eight hours (48h) counted as from the adjournment of the
General Meeting.

 

7.5.          If a matter
which has not been submitted to the Advance Meeting arises at the Shareholders
Meeting, the Agreement Coordinator will vote for suspending any deliberation
about such matter. In this case, the Agreement Coordinator shall call an
Advance Meeting to discuss the specific matter in the manner established in
this Agreement within forty-eight hours (48h) counted as from the adjournment
of the General Meeting.

 

CHAPTER VIII – PREEMPTIVE RIGHT ON
THE DISPOSAL OF AFFECTED SHARES AND OTHER SECURITIES AND RIGHTS

 

8.1.          If any Agreeing
Shareholder desires to dispose, in any way, in total or partially, of its
Affected Shares and/or its subscription rights and/or other securities,
convertible or interchangeable with ordinary shares, the procedure described in
this Chapter and the obligations established in Chapter XV must be observed.

 

18

 

8.2.          Any Agreeing
Shareholder (“Offering Agreeing Shareholder”) willing to dispose of, in total
or partially, its Affected Shares and/or other securities convertible or
interchangeable with ordinary shares (“Offered Securities”) shall send an
unequivocal communication of Offer (“Offer”) to the Representative of its Group
of Agreeing Shareholders, with a copy to the Agreement Coordinator who, in
turn, will send such communication to the remaining Representatives of the
other Agreeing Shareholders Groups, for information and for the purposes
described below.

 

8.2.1.       The Offer must set forth the
number and the price of the Offered Securities as well as the payments terms
and conditions. It is not necessary to include in the Offer any indication of
the intention to buy on the part of any third party or any other Agreeing
Shareholder.

 

8.3.          Each one of the
Agreeing Shareholders that is a member of the Group of Agreeing Shareholders to
which the Offeror Agreeing Shareholder belongs shall have a period of
forty-five (45) consecutive days, counted as from the receipt of the Offer, to
express its answer in writing about the Offer, informing whether it is interested
in acquiring the Offered Securities and whether it intends to participate in
any possible remaining portion of such securities after all answers have been
received from the remaining Agreeing Shareholders.

 

8.3.1.                    Within
two (2) business days as of the date on which the period contemplated in
the above Paragraph 8.3 ends, the Representative of the Group of Agreeing
Shareholders to which the Offeror Agreeing Shareholder belongs will inform the
result of the exercise of the preemptive right by the Agreeing Shareholders of
this Group to the Agreement Coordinator and to the Representatives of the
remaining Groups of Agreeing Shareholders;

 

8.4.          If the members
of the Group of Agreeing Shareholders Group to which the Offeror Agreeing
Shareholder belongs have no interest in acquiring all or a portion of the
Offered Securities, the members of the remaining Groups of Agreeing
Shareholders shall have preemptive right on the acquisition of the remaining
unsold Offered Securities, at the strict terms of the Offer, during a period of
fifteen (15) days counted as of the date of delivery of the notice referred to
in the above SubParagraph 8.3.1. In the notice sent to the Representative of
the Group of Agreeing Shareholders to which the Offeror Agreeing Shareholder
belongs, in reply to the Offer, the Agreeing Shareholders shall inform whether
they intend to participate in any remaining Offered Securities.

 

8.4.1.                    Each
Agreeing Shareholder will be entitled to exercise the preemptive right
contemplated in this Paragraph proportionately to the number of Affected Shares
it holds, without prejudice of the right to reserve the remainder in accordance
with the above provisions. Except in the case of unequivocal acceptance by the
Offeror Agreeing Shareholder, the preemptive right may be exercised solely over
the totality and not less than the totality of the Offered Securities, unless
the Offeror Agreeing Shareholder accepts that it be exercised over a portion of
the Offered Securities.

 

19

 

8.5.          If any Agreeing
Shareholder fails to give an answer within the above established periods, this
will imply a waiver of its preemptive right. 
This preemptive right cannot be assigned to any Agreeing Shareholder of
other Group of Agreeing Shareholders or to third parties, except that any
Agreeing Shareholder may, always and in any case, assign and transfer its
preemptive right to any other Agreeing Shareholder of the same Group.

 

8.6.          If the
preemptive right is not fully exercised and securities still remain available,
these will be distributed on a pro-rata basis and first to the Agreeing
Shareholders of the same Group of the Offeror Agreeing Shareholder who informed
their intention with respect to the remaining securities. Even so, if any
securities still remain, these will be distributed on a prorata basis to the
other Agreeing Shareholders that asked for such reservation.

 

8.7.          If the Groups
of Agreeing Shareholders entitled to preemptive right have not exercised their
respective rights over the totality of the Offered Securities, the Offeror
Agreeing Shareholder may, within a period not to exceed sixty (60) consecutive
days as from the expiration of the period for the Groups of Agreeing
Shareholders to exercise their preemptive right, dispose of such Offered
Securities to third parties at a price not less than that, and upon terms no
more favorable than those, contemplated in the Offer and provided that the
acquiror, simultaneously with the disposal, commit to adhere and be bound to
the terms and conditions of this Agreement, succeeding the Offeror Agreeing
Shareholder in its rights and obligations, and it is herein agreed and
established that its admission as Agreeing Shareholder will occur solely upon
the approval of Agreeing Shareholders representing a minimum of sixty-six
percent (66%) of the Affected Shares.

 

8.7.1.                    To
permit any possible candidates to the acquisition of the Offered Securities to
examine the situation of the Company, the Agreement Coordinator shall make all
efforts to ensure that the Company will make available information and the time
of its key officers, who may be interviewed by such possible candidates.

 

8.8.          The above
procedures will apply to disposals made by the Agreeing Shareholders, in any
way, of subscription rights and/or acquisition rights over securities
convertible or exchangeable into ordinary shares (“Offered Rights”) of the
Company, except that that an automatic proportional reduction of the periods is
provided to permit that the whole sequence of procedures occur within the
period fixed by law or by the Bylaws, or further, by a resolution made at the
General Meeting of Shareholders, for exercising such right by the Offeror
Agreeing Shareholder. The Agreement Coordinator shall inform the
Representatives of the Groups of Agreeing Shareholders the applicable periods
for each case.

 

8.9.          The following
transfers of Affected Shares, subscription rights and/or other securities
convertible or exchangeable into ordinary shares of the Company are excluded
from the restrictions contemplated in this Section:

 

20

 

a)                                     transfers made by any Agreeing Shareholder to its necessary heirs, by “inter
vivos” or “mortis causa” acts, or

 

b)                                    transfers made by any Agreeing Shareholder to a holding company of which
the Agreeing Shareholder is the controlling shareholder (in accordance with
definition in art. 116 of Law No. 6404, of 1976), provided that the Bylaws
of such holding company includes the specific purpose of having an interest in
the Company’s capital and provided that it adheres unconditionally to this
Agreement, or

 

c)                                     transfer, by the Group of Agreeing Shareholders and by year, on a
non-cumulative basis, of a number up to three hundred thousand (300,000)
ordinary shares which are part of the Affected Shares.

 

8.10.                       The disposal of
the control of any holding company referred to in item (b) of the above
Paragraph 8.9 is subject to the restrictions contemplated in this Chapter. The
remaining Agreeing Shareholders are not obliged to acquire the shares or the
quotas of the holding company controlled by the Offeror Agreeing Shareholder,
and may opt for acquiring directly the securities or rights held by the
aforementioned holding company. Such option must be made in writing.

 

8.11.                       The procedure
established in this Chapter, including the exceptions, must be supervised by
the Agreement Coordinator, to whom a copy of all and any mail or communication
issued by any Agreeing Shareholder or Group of Agreeing Shareholders must be
sent. All and any doubt in relation to the procedure, including dates,
beginning and ending of the period, will be clarified by the Agreement
Coordinator, whose decision will be final and binding, no dispute being
permitted, except in the case of obvious misconduct or bad faith.

 

8.12.                       The transfers
and acquisitions of the Affected Shares, subscription rights and/or other
securities convertible or exchangeable into ordinary shares of the Company,
made without observing this Agreement, will be lawfully null in relation to the
Company and the remaining Agreeing Shareholders. The Company will be obliged to
suspend the exercise of any equity or political rights and will be prohibited
from making registrations and annotations in the proper books.

 

8.13.                       The Agreeing
Shareholders acknowledge herein that the procedure for exercising the
preemptive right established in this Chapter may be changed as a result of
partnership, alliance, merger or consolidation of the Company with other
company or companies, even competitors, in which case the procedure for
exercising the preemptive right established in this Chapter may be changed by a
resolution of the Special Meeting, made by Agreeing Shareholders representing a
minimum of sixty-six percent (66%) of the Affected Shares.

 

21

 

CHAPTER IX – PREEMPTIVE RIGHT OVER
THE ACQUISITION OF THIRD PARTY SHARES

 

9.1.          The Agreeing
Shareholder who, in any way other than the acquisition by succession, acquires
from Non-Agreeing third parties ordinary shares of the Company and/or
subscription rights and/or other securities, convertible or exchangeable into
ordinary shares of the Company, shall, promptly after such acquisition, inform
the Agreement Coordinator and the Representatives of the Groups of Agreeing Shareholders
about the price and other conditions.

 

9.2.          The remaining
Agreeing Shareholder shall be entitled to acquire such shares or rights
proportionately to the number of Affected Shares it holds, in accordance with
the procedures established in the above Chapter VIII, and observing the
following requisites:

 

a)                                     the Group of Agreeing Shareholders Group of which the Acquiror Agreeing
Shareholder is a member will not have any preemptive right over the acquisition
of those shares, as contemplated in the above Paragraph 8.3;

 

b)                                    failure to exercise the acquisition right by any Agreeing Shareholder
will not affect the right of the remaining Agreeing Shareholders and therefore
solely a portion of the shares may be acquired by the remaining Agreeing
Shareholders at the end of the process; and

 

c)                                     the Agreeing Shareholder that originally acquired the shares or third
party rights will not be authorized to subsequently dispose of them to third
parties unless the procedure established in the above Chapter VIII is observed.

 

9.3.          Ordinary shares
acquired as established in Paragraph 9.1 and in Paragraph 9.2 must be
compulsorily and immediately considered Affected Shares, for all and any purposes,
regardless of the exercise of the right contemplated in Paragraph 9.2.

 

CHAPTER X
– CO-SALE AND BLOCK SALES

 

10.1.        Provided that
the obligations established in Chapter XV are observed, if one or more Agreeing
Shareholders resolve(s)  to dispose of its Affected Shares, in the whole
or partially, during the term of this Agreement,  and provided that the disposal does not
represent more than seventy percent (70%) of the Affected Shares, each one of
the remaining Agreeing Shareholders may, instead of exercising its preemptive
right as contemplated in the above Chapter VIII, require that the selling
operation include a portion of its Affected Shares, proportionately to its
holding in the total number of Affected Shares, without the third acquiror
being obliged to acquire more Affected Shares than those originally offered.
For this, an Agreeing Shareholder willing to exercise its co-sale right shall
notify the Offeror Agreeing Shareholder(s), with a copy to the Representatives
of the Groups of Agreeing Shareholders and to the Agreement Coordinator of its
intent up to the end of the period established for the exercise of the
preemptive right by the Groups of Agreeing Shareholders.

 

22

 

10.2.        Provided that the
obligations established in Chapter XV are observed, if the Offer contemplates
the transfer of more than seventy percent (70%) of the Affected Shares, each
one of the remaining Agreeing Shareholders may, instead of exercising the preemptive
right as contemplated in the above Chapter VIII, require that the selling
operation includes the totality or a portion of its Affected Shares as part of
the Offered Securities. For this, an Agreeing Shareholder willing to exercise
its co-sale right shall notify the Offeror Agreeing Shareholder(s), with a copy
to the Representatives of the Groups of Agreeing Shareholders and to the
Agreement Coordinator of its intent up to the end of the period established for
the exercise of the preemptive right by the Groups of Agreeing Shareholders.

 

CHAPTER XI — VOLUNTARY OR
INVOLUNTARY ENCUMBRANCE OF THE AFFECTED SHARES

 

11.1.        No Agreeing Shareholder may,
whatever the way, encumber voluntarily its Affected Shares and inherent
subscription rights, unless such encumbrance has been approved by Agreeing
Shareholders representing a minimum of sixty-six percent (66% ) of the Affected
Shares.

 

11.2.        In case the Affected Shares
are, for any reason, subject to judicial attachment or seizure or lien, it will
be considered that the Agreeing Shareholder offered them unequivocally and
irretrievably for disposal in accordance with the above Chapter VIII, unless
the effects of such attachment, seizure or lien end within ninety (90)
consecutive days from the date of such encumbrance.

 

11.2.1.     After the lapse of the above
period and, if the effects have not been eliminated, the Agreement Coordinator
shall notify all the Groups of Agreeing Shareholders to exercise their
preemptive rights by means of a judicial deposit, in cash, of the amount of the
debt that caused the attachment, seizure or lien. If more than one Group of
Agreeing Shareholders Group exercises its preemptive right, the acquisition
will be conducted on a pro-rata basis, and, in this case, the initial
preemptive right of the Group of Agreeing Shareholders to which the Agreeing
Shareholder whose Affected Shares were subject to attachment, seizure or lien
belong will not have the preemptive right contemplated in Paragraph 8.3 of this
Agreement.

 

11.2.2.     In the case of the Affected
Shares being judicially disposed of, the acquiror will not be included in this
Agreement, except if it is already an Agreeing Shareholder or is admitted by
force of a resolution made at a Special Meeting.

 

CHAPTER XII – TERM

 

12.1.        This Agreement will be
effective up to May 31, 2010, and it will be automatically renewed for
consecutive periods of five (5) years, provided that it is not terminated

 

23

 

in writing by any of the
Groups of Agreeing Shareholders, by a notice sent to the Representatives and to
the Agreement Coordinator within a maximum of twelve (12) months from the
expiration of the then current term.

 

12.2.        Notwithstanding the
provisions in the above Paragraph 12.1, the term of this Agreement will be
automatically extended if any agreement or arrangement for a partnership,
alliance, merger or consolidation of the Company with other company or
companies is executed, even with competitors, and its duration is for a period
longer than twelve (12) months in relation to the term of the aforementioned
agreement or arrangement, provided that the Agreeing Shareholders remain,
jointly, as the controlling shareholders of this Company and, indirectly, of
Concórdia Holding, Concórdia Banco and Concórdia Corretora.

 

12.3.        If, for any reason, this
Agreement is not renewed upon the expiration of the term contemplated in the
above Paragraph or upon the expiration of any of its possible extensions, or
further, in any other case of termination or rescission of this Agreement, the
Company shall submit to the Brazilian Central Bank, within one hundred and
twenty (120) days, counted as from the expiration of the term of this
Agreement, the new composition of the controlling group of this Company, for
the purposes and effects of the legislation applicable to financial
institutions while, for the same purposes and effects, this Agreement will be
automatically extended until the Brazilian Central Bank approves the new
controlling group of this Company.

 

12.4.        During the time in which it
remains as the indirect controlling shareholder of Concórdia Banco and
Concordia Corretora, the Company will be obliged to inform the Brazilian
Central Bank, within twenty-four (24) hours of the event, about any termination
by an Agreeing Shareholder in relation to the Agreement or about the renewal or
non-renewal of its term.

 

CHAPTER XIII – BINDING CLAUSE – RESOLUTION OF
CONFLICTS

 

13.1.        Omissions or any disputes
between the Groups of Agreeing Shareholders will be preferably resolved
amicably internally.

 

13.2.        In the event of an impasse,
any Group of Agreeing Shareholders will be entitled to refer the issue to
arbitration in accordance with the rules of the Arbitration Center of the
Brazil-Canada Chamber of Commerce, the proceedings of which will be conducted
by that Chamber, except for situations involving nonperformance of obligations,
requiring judicial proceedings for specific execution, as contemplated in
Paragraph 16.2.

 

13.3.        In case the procedural rules
of the Brazil-Canada Chamber of Commerce are silent about any procedural
respect, those rules will be supplemented by the provisions of Law No. 9307,
dated September 23, 1996.

 

24

 

13.4.        It will be incumbent upon
the Arbitration Center to resolve all controversies relating to the dispute,
including those of an incidental, precautionary, coercive or interlocutory
nature, being the arbitrators barred from making a decision in equity.

 

13.5.        The arbitration court will
be formed by three (3) arbitrators, being one appointed by the Group of
Agreeing Shareholders that referred the issue to arbitration, the other
appointed by the dissenting Group of Agreeing Shareholders and the third,
appointed by the arbitrators appointed by the parties, will be the President of
the Arbitration Court. If the arbitrators appointed by the parties fail to
reach a consensus about the third arbitrator, the latter will be designated by
the President of the Arbitration Center of the Brazil-Canada Chamber of Commerce,
within a maximum period of ten (10) days from the date of such impasse.

 

13.6.        The arbitration will be held
in the City of São Paulo, State of São Paulo, where the award will be rendered.

 

13.7.        The
arbitration procedure, as well as documents and information provided for
arbitration, will be conducted in strict confidence.

 

13.8.        The arbitration award
rendered by the arbitration court will be considered final and cannot be
disputed, binding the parties involved and these parties waive expressly any appeal.
This award may be taken to any court with jurisdiction over its execution.

 

13.9.        Notwithstanding
the above, each one of the parties reserves the right to appeal to the Judicial
Branch to (a) ensure the arbitration; (b) obtain provisional measures to
protect their rights prior to the arbitration, and any procedure in this
connection will not be considered as an act of waiving arbitration as the only
means selected by the parties to resolve the conflicts; (c) enforce any
decision of the arbitration court, including, but not limited to, the
arbitration award; and (d) eventually claim the annulment of the arbitration
award, as contemplated in the Law. In the case of appeal to the Judicial
Branch, the Courthouse of the County of the City of São Paulo, State of São
Paulo will be the sole entity competent to appreciate any judicial proceedings.

 

CHAPTER
XIV – SECRECY OF INFORMATION

 

14.1.        All
and any information about the Company, its activities, plans and projects that
may be disclosed to any Agreeing Shareholder or Group of Agreeing Shareholders
must be considered confidential and the Agreeing Shareholder or Group of
Agreeing Shareholders is obliged to treat it in strictest confidence and not to
disclose it to any other person, except with prior and express authorization of
the Agreement Coordinator and provided that the other Person assumes, in
advance, the same secrecy obligations contemplated in this Chapter.

 

25

 

14.2.        Such
information may be used solely by the Agreeing Shareholder or Group of Agreeing
Shareholders to evaluate the results of the Company and their consequences and
to exchange views with the other Agreeing Shareholders or Group of Agreeing
Shareholders.

 

14.3.        The
Agreeing Shareholder or Group of Agreeing Shareholders is obliged to keep all
and any information received in writing or via electronic means in a safe place
and commits to destroy or return them to the Agreement Coordinator, if so
requested by the Agreement Coordinator.

 

14.4.        The
Agreeing Shareholder or Group of Agreeing Shareholders shall also take all
applicable actions to prevent the mishandling or loss of any document or
diskette containing any information and shall inform the Agreement Coordinator
promptly of any event of this nature, not taking any action without the
approval of the Agreement Coordinator.

 

14.5.        In
case the Agreeing Shareholder or Group of Agreeing Shareholders is obliged, by
a legal or judicial order, to disclose any information, the Agreeing
Shareholder or Group of Agreeing Shareholders shall notify in advance and
promptly the Agreement Coordinator, to permit that the Coordinator or that the
Agreement Meeting may take the proper safeguards, including judicial relief, to
guarantee the secrecy of the information. In any event, the Agreeing
Shareholder or the Group of Agreeing Shareholders commit herein to disclose
solely the information strictly necessary to comply with the legal or judicial
order.

 

14.6.        The
secrecy obligation contemplated in this Chapter will not apply to information
that:

 

a)            was or has been published or information which has otherwise become
available to the public, provided that this has not occurred due to the fault
or neglect of the Agreeing Shareholder or Group of Agreeing Shareholders or infringement
of any other secrecy obligation known to the Agreeing Shareholder or to the
Group of Agreeing Shareholders; or

 

b)            was in the proven and legal possession of the Agreeing Shareholder or
Group of Agreeing Shareholders prior to its disclosure by the Company or during
any Agreement Meeting; or

 

c)            has been disclosed to the Agreeing Shareholder or Group of Agreeing
Shareholders legally by any Person entitled to disclose it with no restriction.

 

14.7.        The
Agreeing Shareholder or Group of Agreeing Shareholders shall abstain from
making public comments about any information, including announcements to the
media at large.

 

26

 

CHAPTER
XV — SPECIAL PROVISIONS

 

15.1.        The Agreeing Shareholders,
individuals and legal entities, acknowledge, represent and certify that,
jointly, they are the controlling shareholders of this Company and, indirectly,
of Concórdia Holding Financeira, Concórdia Banco and of Concórdia Corretora, in
accordance with the provisions in Art. 116, combined with Art. 118 and
Paragraph 2 of Art.  243, all of them of
Law No. 6404/76, as amended, and under this condition, on an irrevocable and
irretrievable basis, they commits to exercise their respective voting rights,
on a uniform and permanent basis and as a block,  on all matters under the authority of the
General Meetings of Shareholders of this Company, elect the majority of its
administrators and to use their controlling power to provide direction to the
corporate activities and guidance about the operation of any of the Company’s
bodies.

 

15.2.        The Company, in turn,
acknowledges, represents and certifies that it is the direct controlling
shareholder of Concórdia Holding Financeira, in accordance with the provisions
of Art. 116, combined with Art. 118 and Paragraph 2 of Art. 243, all of them of
Law No. 6404/76, as amended, and under this condition, on an irrevocable and
irretrievable basis, it commits to exercise its voting rights, on a uniform and
permanent basis and as a block, on all matters under the authority of the
General Meetings of Shareholders of this Company, elect the majority of its
administrators and to use its controlling power to provide direction to the
corporate activities and guidance about the operation of any of the bodies of
Concórdia Holding Financeira.

 

15.3.        Concórdia Holding
Financeira, in turn, acknowledges, represents and certifies that it is the
direct controlling shareholder of Concórdia Banco and of Concórdia Corretora,
in accordance with the provisions of Art. 116, combined with Art. 118 and
Paragraph 2 of Art. 243, all of them of Law No. 6404/76, as amended, and under
this condition, on an irrevocable and irretrievable basis, it commits to
exercise its voting rights, on a uniform and permanent basis and as a block, on
all matters under the authority of the General Meetings of Shareholders of
Concórdia Banco and of Concórdia Corretora, to elect the majority of its
administrators and to use its controlling power to provide direction to the
corporate activities and guidance about the operation of any of the bodies of
Concórdia Banco and of Concórdia Corretora.

 

15.4.        For the purposes of and in
conformity with the provision in the special legislation which institutes and
governs the National Financial System, the Agreeing Shareholders, while in the
condition of indirect controlling shareholders of the financial institutions
Concórdia Banco and Concórdia Corretora controlled by the Company through
Concórdia Holding Financeira, will be jointly liable with the aforementioned
financial institutions and their administrators in the case and in the manner
prescribed by the law in general and, specifically, without prejudice to the
other applicable laws, to Law No. No. 4595,
dated December 31, 1964, Law No. 6024, dated March 13, 1974, Decree-Law No. 2321,
dated February 25, 1987, and Law No. 9447, dated March 14, 1997.

 

15.4.1.     For the purposes of and in conformity with the
provision in the special legislation which institutes and governs the National
Financial System, the

 

27

 

Agreeing Shareholders, while in the condition of indirect controlling
shareholders of the financial institutions Concórdia Banco and Concórdia
Corretora controlled by the Company through Concórdia Holding Financeira, will
be jointly liable with the aforementioned financial institutions and their
administrators in the case and in the manner prescribed by the law and,
specially, without prejudice to the other applicable laws, to Law No. No. 4595,
dated December 31, 1964, Law No. 6024, dated March 13, 1974, Decree-Law No. 2321,
dated February 25, 1987, and Law No. 9447, dated March 14, 1997.

 

15.4.2.     The Company and Concórdia
Holding Financeira take part in this Agreement to certify that they are equally
and jointly liable with Concórdia Banco and Concórdia Corretora and their
administrators, as provided for in Paragraph 15.4., and also in the condition
of parties to this Agreement, for complying with all obligations assumed in
this Agreement.

 

15.5.        During the effective period
of this Agreement and for the time in which they are indirect controlling
shareholders of the financial institutions, the Agreeing Shareholders are
obliged to hold the control of this Company, not disposing of it on behalf of
any person, not even to other Agreeing Shareholder(s), unless duly and
regularly authorized by the Brazilian Central Bank.

 

15.6.        It is herein established by
the Agreeing Shareholders that any transfer of control or change in the
shareholding control group of the Company, as well as all and any legal
business, acts or operations contemplated in this Agreement, whose
implementation or validity, as the case may be, is dependent upon prior and
express authorization of the Brazilian Central Bank, in accordance with the
terms of the applicable legislation, will be considered implemented, in any
case, under the condition precedent that it will be legally valid solely when
approved by the monetary authority.

 

CHAPTER XV - MISCELLANEOUS

 

16.1.        This agreement binds the
Agreeing Shareholders, their heirs and successors.

 

16.2.        Failure on the part of the
Agreeing Shareholders, their heirs and successors to comply with any of the
obligations established in this Agreement will imply the enforcement of the
obligation to do and to provide statements of intent as contemplated in
articles 639 to 641 of the Brazilian Civil Procedural Code.

 

16.2.1.     In addition to the specific
execution stated in the heading of this Paragraph, the Agreeing Shareholder
that defaults on its obligations established in this Agreement will be subject,
on a cumulative basis, to the payment of losses and damages to the remaining
Agreeing Shareholders and any of the Groups may claim it severally.

 

28

 

16.3.        For the purposes of art. 118
of Law No. 6404, of 1976, one copy of this Agreement will, mandatorily, after
being reviewed by the Brazilian Central Bank, be filed at the main address of
the Company, of Concórdia Holding Financeira and of its affiliates, Concórdia
Banco and Concórdia Corretora, and these will, where applicable, observe
strictly all of its terms.

 

16.3.1.     The obligations arising from
this Agreement will be annotated in the proper books of the Company or of the
depositary financial institution responsible for the registration of the
Affected Shares, as well as of Concordia Holding Financeira and its controlled
financial institutions Concórdia Banco and Concórdia Corretora, and such
annotations will impede any legal acts and businesses in disagreement with the covenants
in this Agreement, and the Company is herein authorized to refuse, in this
case, the registration of such acts and businesses, and consequently refusing
to transfer the ownership or title of any rights over the Affected Shares, or
the exercise of the voting right derived from such legal acts and businesses.

 

16.4.        The invalidity,
ineffectiveness or nullity of any of the clauses herein will not imply, ipso facto, the invalidity, ineffectiveness or nullity of
the remaining clauses.

 

16.5.        The tolerance by any of the
Agreeing Shareholders of any delay by the other parties in complying with the
obligations assumed herein will not constitute a novation of any of the
covenants in this instrument or a waiver of any of the rights derived
therefrom.

 

16.6.        This Agreement supersedes
and annuls any other prior agreement and will prevail over any other agreement
not submitted to, appreciated by or registered with the Brazilian Central Bank,
entered into before or after this Agreement. This Agreement constitutes the
entire and sole agreement and understanding between the parties to this
Agreement and supersedes and cancel all prior covenants, promises, commitments,
agreements, communications, declarations or guarantees, whether oral or
written, given or assumed by any of the parties to this Agreement to a third
party, to the Company, or even to a shareholder of this Company, which are not
part of this Agreement.

 

16.7.        Unless expressly
contemplated in this Agreement, particularly in the case contemplated in item (d)
of Paragraph 6.6 and in Paragraph 8.13, this instrument may be amended solely
in writing and when signed by all of the Agreeing Shareholders.

 

16.8.        This Agreement and all of
its provisions are governed by the legislation of the Federative Republic of
Brazil.

 

And having agreed with the
binding terms and conditions expressed herein, the Agreeing Shareholders and
the Consenting Parties execute this instrument in five (5) counterparts of
equal content and form, for one sole purpose, before the two witnesses signing
below.

 

São
Paulo, March 12, 2009

 

29

 

	
   

  	
   

  	
   

  
	
  SUNFLOWER PARTICIPAÇÕES S.A.

  	
   

  	
  MARIA APARECIDA CUNHA FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WALTER FONTANA FILHO

  	
   

  	
  ATTILIO FONTANA NETO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  VÂNIA CUNHA FONTANA

  	
   

  	
  RUTH ESCOREL FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AUGUSTO ESCOREL FONTANA

  	
   

  	
  SOFIA ESCOREL FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DIOGO LEAL FONTANA

  	
   

  	
  ZOÉ SILVEIRA D’AVILA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ODYLLA FONTANA D’AVILA

  	
   

  	
  EDUARDO FONTANA D’AVILA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FELIPE BOTURÃO
  D’AVILA

  	
   

  	
  DANIEL BOTURÃO
  D’AVILA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CARLA MARIA CARVALHO FONTANA

  	
   

  	
  ALFREDO FELIPE
  DA LUZ SOBRINHO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OLGA MARIA DE CARVALHO LUZ

  	
   

  	
  RUTH MARIA
  CARVALHO LUZ MALZONI

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANDRÉ FONTANA
  CARVALHO

  	
   

  	
  ITÁLIA BORDIN FONTANA

  

 

30

 

This
page is an integral part of the Private Instrument of Amendment and
Consolidation of Sadia S.A. Shareholders Agreement entered into on March 12,
2009.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ONEIDA MARIA SCHNITZER FONTANA

  	
   

  	
  JOÃO DOMINGOS FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  JOSÉ CARLOS FONTANA

  	
   

  	
  MARCELO FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MARIA APARECIDA FONTANA MINCARONI

  	
   

  	
  VERA LÚCIA FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FLÁVIO FONTANA MINCARONI

  	
   

  	
  DANIEL FONTANA
  SCHMIDT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANDRÉ BELEZA
  FONTANA

  	
   

  	
  PATRÍCIA BELEZA
  FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OLIVER FONTANA

  	
   

  	
  ALEXANDRE FONTANA SCHMIDT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PEDRO ALBERTO FONTANA

  	
   

  	
  ODEON ANTÔNIO FONTANA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SANDRA MARIA FONTANA

  	
   

  	
  RENATA FONTANA PUSSET

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MARINA FONTANA

  	
   

  	
  ROBERTO PUSSET

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SOELY MACHADO
  FONTANA

  	
   

  	
  ROBERTO HOPPNER
  FONTANA

  

 

31

 

	
   

  	
   

  	
   

  
	
  JULIANA FONTANA PUSSET

  	
   

  	
  NELSON FELIPE KHEIRALLAH FILHO

  

 

This
page is an integral part of the Private Instrument of Amendment and
Consolidation of Sadia S.A. Shareholders Agreement entered into on March 12,
2009.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CRISTIANO FONTANA KHEIRALLAH

  	
   

  	
  OLD PARTICIPAÇÕES
  LTD

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LUCY FONTANA FURLAN

  	
   

  	
  OSÓRIO HENRIQUE
  FURLAN JÚNIOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LUIZ FERNANDO
  FURLAN

  	
   

  	
  DIVA HELENA FURLAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LUCILA MARIA FURLAN

  	
   

  	
  LEILA MARIA FURLAN DA SILVA TELLES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANA MARIA GONÇALVES
  FURLAN

  	
   

  	
  MARCELA PASSOS
  FURLAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GABRIELLA FURLAN
  VILLARES

  	
   

  	
  LUIZ GOTARDO FURLAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ANDRÉ MONEGAGLIA

  	
   

  	
  CAROLINA FURLAN
  UCHÔA CAVALCANTI

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MARIA FURLAN DA
  SILVA TELLES

  	
   

  	
  JOÃO FURLAN DA SILVA TELLES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MANOELA MONEGAGLIA

  	
   

  	
  FELIPE MONEGAGLIA

  

 

32

 

This
page is an integral part of the Private Instrument of Amendment and
Consolidation of Sadia S.A. Shareholders Agreement entered into on March 12,
2009.

 

And in the capacity of intervening consenting
parties and/or parties, as the case may be, in accordance with the terms of
this Agreement:

 

 

	
   

  	
   

  	
   

  
	
  SADIA S.A.

  	
   

  	
  CONCÓRDIA HOLDING FINANCEIRA S.A.

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  CONCÓRDIA BANCO S.A.

  	
   

  

 

 

	
   

  	
   

  	
   

  
	
   

  	
  CONCÓRDIA
  S.A. CORRETORA DE VALORES

  	
   

  
	
   

  	
  MOBILIÁRIOS, CÂMBIO E COMMODITIES

  	
   

  

 

33

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]