Document:

Exhibit 10.1.23

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Exhibit 10.1.23

DATED July 24th, 2007 

 

 

POBT HOLDINGS LIMITED 

(formerly POBT Bank and Trust Limited) 

 

and 

 

  CSN Madeira Lda.

 

And

 

 UBS Pactual Strategy Fund, Ltd. 

 

 

	
	 
	

      

      DEED OF NOVATION 

      

      

      

    

    
	 

 

 

 

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THIS DEED OF NOVATION is made the July 24th, 2007. 

BETWEEN: 

(1) POBT Holdings Limited (formerly POBT Bank and Trust Limited), a corporation duly organized and existing under the laws of The Commonwealth of the Bahamas, with its principal office located at One Montague Place, East Bay Street, 4th
Floor, Nassau, Bahamas ("POBT"); 

(2) CSN Madeira Lda., a corporation duly organized and existing under the laws of Portugal, with its principal office located at Avenida Zarco No 2, 2nd Floor, Freguesia da Se, Conselho de Funchal, ZIP 900-069 ("CSN Madeira"); and 

(3) UBS Pactual Strategy Fund, Ltd., an investment fund organized under the laws of the Cayman Islands, with its registered office located at UBS House, 227 Elgin Avenue, Grand Cayman, Cayman Islands ("Strategy"). 

WHEREAS 

(A) CSN Overseas and POBT entered into Share Swap Transactions dated April 4th, 2003, April 23rd, 2003, April 25th, 2003, May 9th, 2003, May 12th, 2003, May 14th, 2003, May
15th, 2003, May 16th, 2003, May 19th, 2003, May 23rd, 2003, May 26th, 2003 and June 2nd, 2003 (hereinafter collective called the "Transactions" and individually called "Transaction
5," "Transaction 6," "Transaction 7," "Transaction 8," "Transaction 9," "Transaction 10", "Transaction 11," "Transaction 12," "Transaction 13," "Transaction 14," "Transaction 15" and "Transaction 16," respectively); 

(B) On July 30, 2004 POBT and CSN Overseas have agreed to amend the confirmations of the Share Swap Transaction, including the Transactions, by changing the Fixed Rate to 7.5% p.a and the Valuation Date to July 28, 2006 (hereinafter called
"Amendment 1"); 

(C) CSN Overseas, CSN Steel Corp and POBT have entered into a Deed of Novation as of December 28, 2004, in which all rights and obligations of CSN Overseas were transferred to CSN Steel Corp; 

(D) On July 05, 2006 POBT and CSN Steel Corp have agreed to amend the confirmations of the Share Swap Transaction, including the Transaction, by changing the Valuation Date to July 27, 2007, the Averaging Date and the Optional Early Termination
(hereinafter called simply as "Amendment 2"); 

(E) CSN Steel Corp., CSN MADEIRA Lda. and POBT have entered into a Deed of Novation dated as of June 30, 2007, in which all rights and obligations of CSN Steel Corp. were transferred to CSN Steel Corp; 

(F) The Shares described in the Transactions have suffered a Split as of May 30, 2004, where each 1 share has become 4 shares ("Split Event"); 

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(G) The Number of Shares described in the Transactions will change from 280,400 to 1,121,600, 49,700 to 198,800, 3,500 to 14,000, 9,200 to 36,800, 20,900 to 83,600, 53,100 to 212,400, 13,800 to 55,200, 22,600 to 90,400, 17,800 to 71,200, 23,100 to
92,400, 21,900 to 87,600 and 5,000 to 20,000 for Transaction 5, Transaction 6, Transaction 7, Transaction 8, Transaction 9, Transaction 10, Transaction 11, Transaction 12, Transaction 13, Transaction 14, Transaction 15 and Transaction 16,
respectively, after the Split Event; 

(H) The parties wish to enter into this Deed of Novation in order to novate the rights and obligations of POBT under the Transactions from POBT to Strategy and to substitute POBT for Strategy thereunder in the manner hereinafter specified; 

(J) The parties hereto wish to novate the Transactions where the Number of Shares will be 1,121,600, 198,800, 14,000, 36,800, 83,600, 212,400, 55,200, 90,400, 71,200, 92,400, 87,600 and 20,000, the Equity Notional Amount will be USD5,623,155.72,
USD1,080,851.31, USD76,326.71, USD192,483.54, USD432,294.20, USD1,048,190.10, USD263,541.98, USD414,487.65, USD326,096.79, USD439,058.61, USD407,688.12 and USD96,386.09 and the Initial Price will be USD 5.01348, USD5.43688, USD5.45191, USD5.23053,
USD5.17098, USD4.93498, USD4.77431, USD4.585504, USD4.58001, USD4.75172, USD4.65397 and USD4.81930 for Transaction 5, Transaction 6, Transaction 7, Transaction 8, Transaction 9, Transaction 10, Transaction 11, Transaction 12, Transaction 13,
Transaction 14, Transaction 15 and Transaction 16, respectively, and the Specified Transactions are hereby transferred to Strategy and, therefore, all obligations arising out from such Transactions of POBT thereunder cease and are assumed by Strategy
instead. 

IT IS AGREED as follows:

 1.  Novation 

1.1 With effect from the date of this deed Strategy hereby assumes all of the obligations of POBT in respect of the Transactions as if it and not POBT had always been a party to the Transactions. 

1.2 With effect from the date of this deed the Strategy hereby releases and discharges POBT from all its obligations in respect of the Transactions and agrees to the assumption of those obligations by Strategy as if Strategy had always been a party
to such agreements. 

2. Amendment and Confirmation 

2.1 With effect from the date of this deed, the Transactions shall be amended by all references therein to POBT being changed to references to Strategy. 

 2.2 Strategy and POBT hereby confirm that with effect from the date of this deed, the Transactions as novated and amended hereby will continue in full force and effect in all respects, except as provided by clause 1. 

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3. Counterparts 

This deed of novation may be executed in any number of counterparts all of which when taken together shall constitute one and the same deed and any party may enter into this deed of novation by executing any such counterpart. 

4. Governing Law 

The validity, construction and performance of this deed shall be governed by and construed in accordance with the laws of the State of New York, United States of America. 

IN WITNESS WHEREOF this document has been executed and delivered as a deed the day and year first above writtenExhibit 10.1.24

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Exhibit 10.1.24

AMEDMENT N° 3 

This AMENDMENT N° 3 dated July 27th, 2007, is made between UBS Factual Symmetry Fund, Ltd (''Symmetry") and CSN Madeira Lda ("Madeira") (the "Amendment") to the Confirmations of Share Swap Transaction with Trade
Dates as of April 2nd, 2003, POBT Holdings Limited (formerly POBT Bank and Trust Limited) (the "POBT"), and CSN Overseas (the "CSN Overseas) subject to the Deed of Novations dated as of July 24, 2007 (the "Confirmation") 

In consideration of the mutual agreements herein contained, Madeira and Symmetry hereby acknowledge and agree as follows: 

1. Amendments: 

1.1 The Confirmations are hereby amended, as of the date hereof, by changing the following Terms: 

Interest Rate: One Year Libor +1% p.a.

Valuation Date: July 31st, 2008 

Averaging Date(s): Every Exchange Business Day between July 1, 2008, inclusive, and July 31, 2008 exclusive. 

1.2 Events of Default and Termination Events 

"Breach of Agreement" provisions of Section 5(a)(ii) will apply amended as following: 

"Failure by the party to comply with or perform any obligation in accordance with this Agreement if such failure is not remedied on or before the thirtieth day after notice of such failure is given to the party". 

"Misrepresentation" provisions of Section 5(a)(iv) will apply amended as following: 

"A representation (other than a representation under Section 3(e) or (f)) made or repeated by the party in this Agreement proves to have been misleading in any material respect when made or repeated". 

"Cross Default" provisions of Section 5(a)(vi) will apply amended by deleting "or becoming capable at such time of being declared", with Threshold Amount of US$ 25,000,000.00 (or its equivalent in other currencies) 

"Bankruptcy" provisions of Section 5(a)(vii) will apply to amended as following: 

"(1) The party becomes insolvent or is unable to pay its debts as they fall due; (2) an administrator or liquidator of the party on the whole or party of the undertakings, 

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assets and revenues of the party is appointed (or application for any appointment is made); (3) the party takes any action for a readjustment or deferment of any of its payment obligations or makes a general assignment or an arrangement or
composition with or for the benefit of its creditors or declares a moratorium or suspension of payment in respect of any of its indebtedness; or (4) the party ceases or threatens to cease to carry on all or any substantial part of its business; or
(5) the party commences a voluntary case in insolvency or bankruptcy or takes any other action or commences any other proceedings for any other relief under any law affecting creditors' rights; or (6) the party consents to the commencement against
it of an involuntary case in insolvency or bankruptcy or any other action or proceeding is commenced related to involuntary insolvency or bankruptcy in respect of the party and such proceeding is not dismissed or stayed within sixty days after the
commencement thereof."

"Merger without Assumption" provisions of Section 5(a)(viii) will apply. 

"Automatic Early Termination" provisions of Section 6(a) will not apply. 

"Credit Event Upon Merger" provisions of Section 5(b)(iv) will not apply. 

2. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument. 

3. This Amendment shall construe in accordance with and be governed by the laws of the State of New York. This Amendment shall be binding upon, and inure to the benefit of the respective successors and assigns of the parties hereto. 

4. Except as specifically modified by this Amendment, all definitions and provisions contained in the 2000 ISDA Definitions, the 1996 ISDA Equity Derivatives Definitions as published by the International Swaps and Derivatives Association, Inc., and
in all the Confirmations above mentioned, are hereby reaffirmed and shall remain in full force and effect.

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