Document:

Exhibit 10.1.2

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Exhibit 10.1.2 

New York Law Version 

SCHEDULE 

to the 

Master Agreement 

dated as of April 2nd, 2003 

between 

POBT BANK AND TRUST LIMITED (BAHAMAS) ("Party A") 

and 

CSN OVERSEAS ("Party B") 

Part 1. Termination Provisions. 

a. "Specified Entity" means in relation to Party A for the purpose of: 

     Section 5(a)(v), Not applicable 

     Section 5(a)(vi), Not applicable 

     Section 5(a)(vii), Not applicable 

     Section 5(b)(iv), Not applicable 

in relation to Party B for the purpose of: 

     Section 5(a)(v), Not applicable 

     Section 5(a)(vi), Not applicable 

     Section 5(a)(vii), Not applicable 

     Section 5(b)(iv), Not applicable 

b. "Specified Transaction" will have the meaning set forth in Section 14 of this Agreement. 

c. The "Cross Default" provisions of Section 5(a)(vi) will apply to Party A and Party B. 

     "Specified Indebtedness" will have the meaning set forth in Section 14. 

     "Threshold Amount" means with respect to Party A, $ Zero, and with respect to Party B, $ Zero. 

d. "Termination Currency" means United States Dollars. 

e. The "Credit Event Upon Merger" provisions of Section 5(b)(iv), as amended hereby, will apply to Party A and Party B. 

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     Section 5(b)(iv) is hereby amended to read as follows: 

(iv) "Credit Event Upon Merger" means that a Designated Event (as defined below) occurs with respect to a party, any Credit Support Provider of such party or any applicable Specified Entity of such party (in each case, "X") and such
Designated Event does not constitute a Merger Without Assumption under Section 5(a)(viii) hereof and, in the reasonable opinion of the other party, the creditworthiness of X or, if applicable, the successor, surviving or transferee entity of X,
after taking into account any applicable Credit Support Document, is materially weaker than X immediately prior to such action, (and, in such event, such party or its successor, surviving or transferee entity, as appropriate, will be the Affected
Party). For purposes hereof, a Designated Event with respect to X means that, after the date of this Agreement: 

X transfers all or substantially all of its assets (or any substantial part of the assets comprising the business conducted by X as of the date of this Agreement) to, or receives all or substantially all the assets or obligations of, another entity.

f. The "Automatic Early Termination" provisions of Section 6(a) will not apply to either party; provided, however, that if at any time an Event of Default specified in Section 5(a)(vii)(1), (3), (4), (5), (6) or, to the extent
analogous thereto, (8), with respect to a party has occurred and is then continuing, and such Event of Default is governed by a system of law which does not permit termination to take place or requires approval of a court or any other appropriate
agency or individual in connection with such termination after the occurrence of such Event of Default, then the "Automatic Early Termination" provisions of Section 6(a) of this Agreement will apply to such party. 

g. Payments on Early Termination. For the purpose of Section 6(e) of this Agreement: 

    (i) Loss will apply. 

    (ii) The Second Method will apply. 

h. Additional Termination Event. Additional Termination Event will not apply to Party A, and will not apply to Party B 

Part 2. Tax Representations. 

a. Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, each of Party A and Party B makes the following representation: 

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It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than
interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it may rely on: (i) the accuracy of any representations made by the other party pursuant to
Section 3(f) of this Agreement; (ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or
4(a)(iii) of this Agreement; and (iii) the satisfaction of the agreement of the other party contained in Section 4(d) of this Agreement; provided, that it shall not be a breach of this representation where reliance is placed on clause (ii)
and the other party does not deliver a form or document under Section 4(a)(ii) by reason of material prejudice to its legal or commercial position 

b. Payee Tax Representations. For the purpose of Section 3(f) of this Agreement: 

(i) Party A represents to Party B that it is a non-United States branch of a foreign person, within the meaning of United States Treasury regulation section 1.1441-4(a)(3)(ii). 

Party B represents to Party A that it is a foreign person, within the meaning of United States Treasury regulation section 1.6041-4(a)(4). 

Part 3. Agreement to Deliver Documents. 

For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the following documents, as applicable: 

 

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 a. Tax forms, documents or certificates to be delivered are: 

					
	Party required to 	 	Form/Document/ 	 	Date by which 
	deliver document 	 	Certificate 	 	to be delivered 

					
	Party A 	 	IRS Form W-8BEN, or any successor form. 	 	Upon execution of this Agreement; promptly after learning that such form or document is required by applicable law or regulation; and prior to the expiration or obsolescence of any previously delivered form. 
	 	 	 	 	 
	 	 	 	 	 
	 
	 
	Party B 	 	Form W-8BEN1 or any successor form. 	 	Upon execution of this Agreement; promptly after learning that such form or document is required; and prior to the expiration or obsolescence of any previously delivered form. 
	 	 	 	 	 
	 
	 
	Party A and Party B 	 	Any other document required or reasonably requested to allow the other party to make payments under this Agreement without any deduction or withholding for or on account of any Tax or with such deduction or withholding at a reduced rate. 	 	 Upon reasonable demand by the other party; upon learning that such form or document is required by applicable law or regulation; and prior to the expiration or obsolescence of any previously delivered form. 

_________________________

1 This form is required if Party B is a foreign entity and the payments involved are not effectively connected income. 

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b. Other documents to be delivered are: 

							
	 	 	 	 	 	 	 Covered by 
	 Party required to 	 	Form/Document/ 	 	 Date by which 	 	 Section 3(d)
	deliver document 	 	Certificate 	 	to be delivered 	 	Representation
	 	 	 	 	 	 	 
	 		 		 		 
	Each Party     	 	Certified evidence of the authority, incumbency and specimen signature of each authorized person executing this Agreement and any Confirmation. 	 	Upon execution of this Agreement; and promptly following the request of the other party. 	 	Yes.      
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
			 				
	Each Party         	 	Audited annual consolidated financial statements, prepared in accordance with accounting principles that are generally accepted for institutions of its type in the jurisdiction of its organization and certified by independent public accountants. 	 	 Upon request of the other party promptly following availability of statements. 	 	 Yes, as modified in Part 5(d) below.          
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
			 				
	Each Party 	 	Unaudited interim consolidated financial statements prepared in accordance with accounting principles that are generally accepted for institutions of its type in the jurisdiction of its organization. 	 	Upon request of the other party promptly following availability of statements. 	 	Yes, as modified in Part 5(d) below. 

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	 	 	 	 	 	 	Covered by 
	Party required to 	 	Form/Document/ 	 	Date by which 	 	Section 3(d)
	deliver document 	 	Certificate 	 	to be delivered 	 	Representation 
	 
	Each Party 	 	A copy of the resolutions (or documents with analogous effect or evidence) of such party approving this Agreement and the Transactions contemplated hereby. 	 	Upon execution of this Agreement. 	 	Yes. 

Part 4. Miscellaneous. 

a. Addresses for Notices. For the purpose of Section 12(a) of this Agreement: 

Address for notices or communications to Party A: 

Email Address:  bnrocha@pobt.com.bs

Mailing Address:  Fort Nassau Centre, Marlborough Street, suite 202, 2nd floor, Nassau, Bahamas 

Attention: Bernardo Nolasco 

Facsimile: 242 322 5577 

Telephone No.: 242 322 5573 

Address for notices or communications to Party B: 

Mailing Address: Condomínio Edifício São Luiz, Av. Juscelino Kubitschek, 1830, 14° andar, Torre I – Itaim Bibi 

Attention: Financial Directory 

Facsimile: 55 11 3049 7553 

Telephone No.: 55 11 3049 7390 

b. Process Agent. For the purpose of Section 13(c) of this Agreement: 

Party A appoints as its Process Agent: Factual Capital Corporation, 527 Madison
Avenue, 9th   floor, New York, NY, Attn.: Christina de Castro 

Party B appoints as its Process Agent: CT Corporation System – 111 Eighth
Avenue, 13th floor, New York, NY, 10011. 

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c. Offices. The provisions of Section 10(a) will apply to this Agreement. 

d. Multibranch Party. For the purpose of Section 10 of this Agreement: 

   Party A is not a Multibranch Party. 

   Party B is not a Multibranch Party. 

e. Calculation Agent. The Calculation Agent is Party A, unless otherwise specified in the applicable Confirmation. 

f. Credit Support Document. With respect to Party A, none. With respect to Party B, none 

g. Credit Support Provider. With respect to Party A, none. With respect to Party B, none. 

h. Governing Law . This Agreement will be governed by and construed in accordance with the laws of the State of New York without reference to choice of law doctrine. 

i. Netting of Payments. Subparagraph (ii) of Section
  2(c) of this Agreement will not apply to any Transactions. 

j. "Affiliate" will have the meaning set forth in Section 14 of this Agreement. 

Part 5. Other Provisions. 

a. Inconsistency. Unless expressly provided otherwise, in the event of any inconsistency between any of the documents listed below, the document listed first will prevail: (i) the Confirmation; (ii) the Schedule; (iii) the printed form
of ISDA Master Agreement; and (iv) the 2000 ISDA Definitions or other definitions incorporated in the Confirmations relating to the Transactions. 

b. Additional Representations. Section 3(a) is hereby amended by deleting the word "and" at the end of 3(a)(iv), substituting a semicolon for the period at the end of 3(a)(v) and adding after 3(a)(v): 

"(vi) Eligible Contract Participant. It is an "eligible contract participant" as defined in the Commodity Exchange Act (7 U.S.C. §1(a)(12)), as amended; 

(vii) Individual Negotiation. It understands that this Agreement and each Transaction entered into hereunder are subject to individual negotiation; and 

(viii) No Agency. It is entering into this Agreement, each Credit Support Document to which it is a party, the Transaction and such other
documentation as principal, and not as agent or in any other capacity, fiduciary or otherwise." 

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e. Accuracy of Specified Information. Section 3(d) is hereby amended by adding in the third line thereof after the word "respect" and before the period the words: "or in the case of audited or unaudited financial statements, a fair
presentation of the financial condition of the relevant person and in the case of unaudited quarterly financial statements, subject to normal year-end audit adjustments". 

d. Trade Execution. Party A and Party B acknowledge, understand and agree that orders executed are completed when Party A and Party B agree on the essential terms of the Transaction, which the parties expect will occur by telephone.
After such execution Party A and Party B cannot cancel the Transaction without the consent of the other party and there is a legally binding agreement between Party A and Party B. By placing orders through a party's trading desk, the other party agrees to such immediate execution and accepts the risk of this execution feature, absent manifest error. 

e. Consent to Recording. Each of Party A and Party B consents to the recording of the telephone conversations of relevant personnel of Party A or Party B, as the case may be, and its Affiliates in connection with this Agreement or any
potential Transaction. 

f. Confirmations. For each Transaction, Party A shall promptly send to Party B a Confirmation setting forth the essential terms of such Transaction. Party B shall respond by confirming the terms stated in such Confirmation or requesting
revisions of any error within two Business Days of receipt of such Confirmation from Party A. Failure of Party B to respond within such period shall not affect the validity or enforceability of such Transaction, and in such event, the terms stated in such Confirmation shall constitute conclusive and binding evidence of the terms of the
Transaction to which the Confirmation relates, and Party B shall be deemed to have executed such Confirmation and agreed to the terms stated therein. 

g. Waiver of Jury Trial. To the fullest extent permitted by law, each party irrevocably waives its right to trial by jury in any legal proceeding instituted in connection with this Agreement or any Transaction. 

h. Relationship Between Parties. Each party will be deemed to represent (such representation shall be deemed to be a representation pursuant to Section 3 for all purposes of this Agreement) to the other party on the date on which it
enters into a Transaction that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction): 

 (i) Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisers as it has deemed necessary. It is not relying on any communications (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction.
No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of that Transaction. 

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(ii) Assessment and Understanding. It is capable of assessing the merits of and understanding (on its own behalf or through independent professional advice), and understands and accepts, the terms, conditions and risks of that Transaction. It
is also capable of assuming, and assumes, the risks of that Transaction. 

(iii) Status of Parties. The other party is not acting as a fiduciary for or an adviser to it in respect of that Transaction. 

i. Severability. If any term, provision, covenant or condition of this Agreement, or the application thereof to any party or circumstance, shall be held to be invalid or unenforceable (in whole or in part) for any reason, the remaining
terms, provisions, covenants and conditions shall continue in full force and effect as if this Agreement had been executed with the invalid or unenforceable portion eliminated, so long as this Agreement as so modified continues to express, without
material change, the original intentions of the parties as to the subject matter of this Agreement and the deletion of such portion of this Agreement does not substantially impair the respective benefits or expectations of the parties to this
Agreement. 

j. Setoff. The following provision is added as Section 6(f) of this Agreement: 

"Setoff. Any amount (the "Early Termination Amount") payable to one party (the "Payee") by the other party (the "Payer") under Section 6(e) of
  this Agreement, in circumstances where there is a Defaulting Party or one Affected Party in the case of a Termination Event, will, at the option of the party ("X") other than the Defaulting Party or the Affected Party
  ("Y") (and without prior notice to the Y), be reduced by its setoff against any amount(s) (the "Other Agreement Amount") payable (whether at such time or in the future or upon the occurrence of a contingency) by the
  Payee to the Payer (irrespective of the currency, place of payment or booking office of the obligation) under any other agreement(s) between the Payee and the Payer or instrument(s) or undertaking(s) issued or executed by one party to, or in favor
  of, the other party (and the Other Agreement Amount will be discharged promptly and in all respects to the extent it is so set off). X will give notice to the other party of any setoff effected under this Section 6(f). 

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For this purpose, either the Early Termination Amount or the Other Agreement Amount (or the relevant portion of such amounts) may be converted by X into the currency in which the other is denominated at the rate of exchange at which such party would
be able, acting in a reasonable manner and in good faith, to purchase the relevant amount of such currency. The term "rate of exchange" includes, but is not limited to, any premiums and costs of exchange payable in connection with the purchase of or
conversion into the relevant currency. 

If an obligation is unascertained, X may in good faith estimate that obligation and setoff in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained. Nothing in Section 6(f) shall be
effective to create a charge or other security interest. This Section shall be without prejudice and in addition to any right of setoff, combination of accounts, lien or other right to which any party is at any time otherwise entitled (whether by
operation of law, contract or otherwise)." 

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Exhibit 10.1.3

  Transaction 

CSN OVERSEAS 

	
	 
	Date: April 2, 2003 
	To: CSN OVERSEAS 
	From: POBT Bank and Trust Limited 
	Re: Swap Transaction 
	 

Dear Sirs: 

     The purpose of this letter agreement (this "Confirmation") is to confirm the terms and conditions of the Share Swap Transaction entered into between POBT Bank and Trust Limited (the "POBT"), a company incorporated under
the laws of the Commonwealth of The Bahamas, with its principal place of business located at Fort Nassau Centre, Marlborough St. 2nd floor, Suite 202, Nassau, Bahamas and CSN Overseas ("CSN Overseas") a company incorporated under the laws
of the Cayman Islands, with its principal place of business located at Caledonian House, Mary Street P.O. Box 1043, Georgetown, Grand Cayman, on the Trade Date specified below (the "Transaction"). This Confirmation constitutes a "Confirmation" as
referred to in the ISDA Master Agreement specified below. 

     The definitions and provisions contained in the 2000 ISDA Definitions, and in the 1996 ISDA Equity Derivatives Definitions (the "Equity Definitons") as published by the International Swaps and Derivatives Association,
Inc., are incorporated into this Confirmation. In the event of any inconsistency between the Equity Definitions and this Confirmation, this Confirmation will govern. 

1. Calculation Agent: POBT 

2. Account Details: 

Account for payments to CSN Overseas:

CITIBANK N.A.

ABA # 021 00000 89 

SWIFT . CIT: U.S 33 of CSN OVERSEAS / Account number 36139071 

Account for payments to POBT: 

  Bank of New York, New York 

ABA 021 0000 18 

Account nr. 89 0033 1194

Account of POBT Bank and Trust Limited 

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2. The terms of the particular of the Transaction to which this Confirmation relates are as follows: 

General Terms: 

			
	Trade Date: 	 	April 2, 2003 

	 
	Effective Date: 	 	April 7, 2003 

	 
	Termination Date: 	 	  
    The Equity Payment Date 

	 
	Shares: 	 	  
    Companhia Siderurgica Nacional – American Depositary Receipt - Ticker SID, Cusip 20440W105. 

	 
	Exchange: 	 	New York Stock Exchange 

	 
	Related Exchange(s): 	 	All Exchanges 

	 
	Exchange Business Day: 	 	Notwithstanding anything to the contrary in the definition of "Exchange Business Day" in Section 1.20 of the Equity Definitions, "Exchange Business Day" means any day that each Exchange and each Related Exchange are open for trading unless the Calculation Agent determines that any failure of such Exchange or Related Exchange to open does not have a material effect on the trading market for Shares. Each such day shall be an Exchange Business Day notwithstanding any such Exchange or Related Exchange closing to prior to its regular weekday closing time. 

	 
	Market Disruption Event: 	 	Notwithstanding anything to the contrary in Section 4.3 of the Equity Definitions, "Market Disruption Event" means the occurrence or existence on any Exchange Business Day (A) at the relevant Valuation Time or at any time during the one-half hour period that ends at the relevant Valuation 

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	 	 	Time of any suspension, limitation imposed on, or impairment occuring with respect to trading (by the relevant Exchange or Related Exchange or otherwise or by reason of movements in price exceeding limits permitted by the relevant exchange or otherwise) in (x) the Share on the Exchange or (y) any options contracts or futures contracts relating to the Share on any Related Exchange if, in any such case, the Calculation Agent determines that such suspension, limitation or impairment has a material effect on the trading market for the affected financial instruments or (13) of a System Disruption. 

	 
	 	 	In addition it shall be a Market Disruption Event if the Exchange or Related Exchange closes prior to their scheduled closing time (if, in any such case, the Calculation Agent determines that such earlier closing has a material effect on the trading market for the affected financial instruments at the Valuation Time). A "scheduled closing time" is any regular weekday closing time or any closing time announced by the Exchange or Related Exchange, as the case may be, prior to the close of the regular trading session on such Exchange or Related Exchange on the previous Exchange Business Day.

	 
	System Disruption: 	 	Any event that materially disrupts (as determined by the Calculation Agent) the ability to effect transactions in the Share on the Exchange. The types of disruptions contemplated by this provision include, but are not limited to, (a) the temporary closure and re-opening of the Exchange at any point during the regular trading session and (b)

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	 	 	material systems failure of the trading communications and connectivity systems to the Exchange. 
	 	 	 
	 	 	 
	Equity Amounts Payable by POBT 
	 	 
	 	 	 
	   Equity Amount Payer: 	 	POBT 
	 	 	 
	   Number of Shares: 	 	1,800,000 
	 	 	 
	   Equity Notional Amount: 	 	USD35,835.200 
	 	 	 
	   Equity Notional Reset: 	 	Not Applicable 
	 	 	 
	   Equity Payment Date: 	 	Three Currency Business Days after the Valuation Date 
	 	 	 
	   Type of Return: 	 	Price Return 
	 	 	 
	   Initial Price: 	 	USD 19.90804 
	 	 	 
	   Final Price: 	 	Means arithmetic mean of the Relevant Prices of the Shares on each Averaging Date. 
	 	 	 
	   Relevant Price: 	 	The last traded price per share quoted by the Exchange. 
	 	 	 
	   Valuation Time 	 	The close of trading on Exchange 
	 	 	 
	   Valuation Date(s): 	 	May 2, 2005 
	 	 	 
	   Averaging Date (s): 	 	Every Exchange Business Day between April 2, 2005, inclusive, and May 2, 2005 exclusive. 
	 	 	 
	  Averaging Date Market Disruption: 
	 	Postponement 

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	Dividend Amount: 	 	The Cash Dividend for the relevant Dividend Period multiplied by the number of Shares. Subject to the provisions under "Cash Dividends" below. 
	 
	  Cash Dividends: 	 	100% (the "Percentage Amount") of the gross dividend, (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio" declared and paid by the Issuer to holders generally of record of a single Share on the relevant record date during the relevant Dividend Period. For the avoidance of doubt, the "gross dividend" (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio"" shall represent a sum before the withholding or deduction of any taxes at the source by or on behalf of any applicable authority having power to tax in respect of such a dividend, (cash or stock dividend) and/or interest on own capital "juros sobre capital próprio" and shall exclude any imputation or other credits, refunds or deductions granted by any applicable authority having power to tax in respect of such dividend and any taxes, credits, refunds or benefits imposed, withheld, assessed or levied thereon.
 
	 
	Dividend Period: 	 	Has the meaning specified in Section 7.12 (c) of the 1996 ISDA Equity Derivatives Definitions. 

	 	 	 
	Dividend as Collateral: 	 	 Any Dividend Amount received by POBT shall be promptly deemed posted Collateral three Business Days after the receipt of such Dividend Amount, regardless of any Collacteral call by POBT, and to the extent it causes, at any time, the amount of deposited Collateral to exceed the Collateral requirement setforth above (i.e., 30% of the Equity Notional Amount), such excess amount shall be released to CSN as provided in "Collateral" below. In the event the Dividend Amount effectively received by POBT is subject to any deduction or withholding tax, POBT shall considered, for the purpose of this section, the net amount effectively received. 

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	 Gross up: 	 	All payments  to be made by each of the Parties hereto to the other Party under this Transaction will be made without any deduction or withholding tax. 
	 
	 Reinvestment of Dividends: 	 	Not Applicable 
	 
	  Fixed Amounts payable by CSN OVERSEAS 
	 
	Fixed Rate Payer: 	 	CSN OVERSEAS 
	 
	Calculation Amount: 	 	The Equity Notional Amount 
	 
	Payment Dates: 	 	Three Business Days after the Valuation Date subject to adjustment in accordance with the Business Day Convention, provided that, if on such date the corresponding Payment Date has not yet occurred, such Payment Date shall be postponed to the date on which the Payment Date occurs and the Fixed Rate Payer shall pay the Fixed Amount due in relation to the relevant Calculation Period on that postponed Payment Date. 
	 
	Fixed Rate: 	 	11,5% p.a. 
	 
	Fixed Rate Day Count Fraction: 	 	Actual /360 
	 
	Business Days: 	 	Following Business Day Convention 
	 
	Adjustments: 	 	 
	 
	 Method of Adjustment: 	 	Calculation Agent Adjustment 
	 
	Extraordinary Events: 	 	 
	 
	Consequences of Merger Events: 	 	 

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	Share-for-Share: 	 	 Alternative Obligation 
	 
	Share-for-Other: 	 	 Cancellation and Payment 
	 
	Share-for-Combined: 	 	 Cancellation and Payment 
	 
	Merger Event 	 	(a) "Merger Event" means, in respect of any relevant Shares, any (i) reclassification or change of such Shares that results in a transfer of or an irrevocable commitment to transfer all of such Shares outstanding, (ii) consolidation, amalgamation or merger of the Issuer with or into another entity (other than a consolidation, amalgamation or merger in which such issuer is the continuing entity and which does not result in any such reclassification or change of all of such Shares outstanding) or (iii) other takeover offer for such Shares that results in a transfer of or an irrevocable commitment to transfer all such Shares (oher than such Shares owned or controlled by the offeror), in each case if the Merger Date is on or before, in the case of a Physically –settled Option Transaction, the Expiration Date or, in any other case, the final Valuation Date.
	 
	 	 	"Merger Date" means the closing date of the Merger Event, provided, that for a tender Offer, the Merger Date in the date on which shares in the amount of the applicable percentage threshold are actually purchased (as determined by the Calculation Agent)
	 	 	 
	Payment Currency: 	 	All amounts payable under this Transaction shall be in USD. 
	 
	Nationalization, Insolvency or De-listing: 	 	Cancellation and Payment. 
	 	 	 

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	Optional Early Termination: 	 	CSN OVERSEAS has the rigtht to Early Terminate this Transaction, in whole or in part, provided that CSN OVERSEAS shall issue an Early Termination Notice addressed to POBT. CSN OVERSEAS hereby acknowledges that any such Early Termination may materially adverse affect the Final Price for the Shares due to market conditions and the number of Shares requested throught an Early Termination Notice, being agreed that the Calculation Agent will determine the Final Price. In case of a partial Early Termination the parties agree to sign an amendment in order to make the proper ajustments to this transaction and reflect therefrom such Early Termination. 
	 
	 
	Early Termination Settlement Amount: 	 	  The amount agreed between the parties. 
	 
	Early Termination Date: 	 	One Exchange Business Day after the date Early Termination Notice has been signed. 
	 
	 Coll ateral: 	 	Collateral will be posted by CSN OVERSEAS in an amount equal to 30% of the Equity Notional Amount. The Calculation Agent will calculate on a daily basis if the amount deposited as Collateral, affected by the estimated Settlement Amount in respect of this transaction as if this transaction was terminated at that moment, still represents 30% of the Equity Notional Amount. If at any moment this calculation shows a result of less than 20% or more than 40% of the Equity Notional Amount, POBT or CSN OVERSEAS respectively reserves the right to call or redeem respectively for Collateral in order to achieve the previous 30% of the Equity Notional Amount. If the result of 

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	 	 	aforesaid calculation is different from 30% on any last Business Day of each month POBT will call or redeem Collateral in order to achieve the previous 30% of the Equity Notional Amount. Without any limitation of the foregoing, CSN OVERSEAS hereby grants POBT a first priority security interest in the collateral as collateral for its obligations under this Transaction. Upon any default by CSN OVERSEAS (including any default under the Transaction or any other transaction between CSN OVERSEAS and POBT or its affiliated), POBT shall have all of the rights with respect to the collateral of a secured party under the Uniform Commercial Code as in effect from time to time in the State of New York 
	 	 	 
	   Determining Party: 	 	POBT 
	 
	   Credit Provisions: 	 	In consideration of POBT and CSN OVERSEAS entereing into this Transaction and in order to support and secure the obligations of CSN OVERSEAS under ibis Transaction, the Agreement and any other transaction between CSN OVERSEAS and POST, CSN OVERSEAS will from time to time, whenever requested by POBT deposit with Eligible Collateral as provided below always in accordance with the dynamic of Collateral. 
	 	 	 
	Settlement Terms: 	 	 
	 
	   Cash Settlement: 	 	Applicable 
	 
	   Settlement Currency: 	 	USD 
	 
	   Cash Settlement Payment Date 	 	Three Currency Business Days after the Relevant Valuation Date or the Early Termination Date as the case may be. 

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	"Eligible Collateral" 
	 	means cash and/or US Treasury-bilis and/or certificates of deposit issued by POBT or any other financial institution previously approved by POBT with the maximum term of 90 days. 
	 	 

Events of Default and Tennination Events 

The occurrence of one or more of the following events during the period from and including the Trade Date up to and including the Termination Date will be considered an Event of Default: 

(i) Failure to Pay or Deliver; 

(ii) Breach of Agreement; 

(iii) Misrepresentation; 

(iv) Cross Default, with Threshold Amount of US$10,000,000.00 (or its equivalent in other currencies) 

(v) Bankruptcy; 

(vi) Merger Without Assurnption; and 

The occurrence of one or more of the following events during the period from and including the Trade Date up to and including the Termination Date will be considered a Termination Event: 

(i) Illegality 

(ii) Tax Event; 

(iii) Tax Event Upon Merger; and 

(iv) Credit Event Upon Merger, provided however that provided, however, that the phrase "materially weaker" means (i) the senior long-term debt or deposits of the resulting, surviving or transferee entity is or are, as the case may be, rated less
than investiment grade by Standard & Poor's Corporation or Moody's Investors Service, Inc., or (ii) in the event that there are no such Standard & Poor's Corporation or Moody's Investors Service, Inc. ratings, the Policies (as defined below)
in effect at the time, of the party which is not the Affected Party, would lead such non-Affected Party, solely as a result of a change in the nature, character, identity or condition of the Affected Party, from its state prior to such
consolidation, amalgamation, merger or transfer, to decline to make an extension of credit to, or enter into a Transaction with, the resulting, surviving or transferee entity. "Policies", for the purposes of this definition means: (1)(A) internal
credit limits applicable to individual entities or (B) other limits on doing business with entities domiciled or doing business in certain jurisdictions or engaging in certain activities, or (2) internal restriction 

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on doing business with entities with whom the party which is not the Affected Party has had prior adverse business relations. 

Automatic Early Termination: Applicable 

In respect of this transaction, POBT from the date hereof until the Termination Date (or Early Termination Date), shall at all times be the relevant owner of record and beneficial owner of all the Shares, provided, however, that POBT may transfer the Shares to any of its affiliates and may enter into certain transactions, such as selling transactions linked to derivative transactions with the specific purpose of permitting POBT to leverage its position for a certain period of time not to exceed the Termination (or the Early Termination Date) to the extent that the Shares may at any time return to its property and possession in order to enable it to comply with its obligations hereunder. 

Additional Guarantees: 

Companhia Siderurgica Nacional (hereinafter referred as the "Guarantor") hereby unconditionally and irrevocably guarantees to POBT the due and punctual payment of all sums due by CSN OVERSEAS in accordance therewith and when the same become due and payable. The Guarantor hereby unconditionally and irrevocably waives any and all rights it may have under Articles 827, 828, 838 I, and 839 of the Brazilian Civil Code, and Article 595 of the Brazilian Code of Civil Procedure. In the event the Guarantor is not allowed to remit the amount due by CSN OVERSEAS to POBT, the Guarantor hereby undertakes to effect the payment in Brazil according to the instructions to be sent by POBT to the Guarantor in which it will be indicated the name of the payee in Brazil. 

Reliance on own Expertise: 

The POBT and CSN OVERSEAS represents and guaranty to the other that: (a) it is entering into the Transaction as principal (and not as agent or in any other capacity); (b)the other party is not acting as a fiduciary for or an advisor to it in respect of the Transaction; (c) it is not relying upon any representation of the other party except those expressly set forth in the Agreement and it does not hold itself out as advising, or any of its employees or agents as having the authority to advise, the other party as to whether or not it should enter into any transaction or as to any subsequent action relating thereto or any other commercial matters concerned with the Transaction, and it shall have no responsibility whatsoever in respect of any advice of this nature given, or views expressed, by it to any of such persons to the other party, whether or not such advice is given or such views are expressed at the request of the other party; (d) it has consulted with its own legal, regulatory, tax, business, inves

tment, financial and accounting advisors to the extent it has deemed necessary, and it has made its own investment, 

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hedging and trading decisions based upon its own judgment and upon any advice from such advisors as it has deemed necessary and not upon any view expressed by the other party; and (e) it is entering into the Transaction with a full understanding of
  the terms, conditions and risks thereof and it is capable of assessing and is willing to assume those risks. 

 Offices: 

 The office of CSN OVERSEAS for this Transaction is Caledonian House, Mary Street P.O. Box 1043, Georgetown, Grand Cayman. 

 The office of POBT for this Transaction is Fort Nassau Centre, Marlborough Street, 2nd floor, suite 202, Nassau, Bahamas. 

 Jurisdiction: 

This Transaction will be governed by and construed in accordance with New York Law. 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this ,Confirmation enclosed for that purpose and returning it to us or by sending to us a letter or telex substantially similar to this
  letter, which letter or telex sets forth the material terms of the Transaction to which this Confirmation relates and indicates your agreement to those terms. 

 

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