Document:

Exhibit 4.2

XL GROUP LTD.

as Issuer

XL GROUP PUBLIC LIMITED COMPANY

as Guarantor

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Trustee

FIRST SUPPLEMENTAL INDENTURE

DATED AS OF SEPTEMBER 30, 2011

5.75% SENIOR NOTES DUE 2021

SUPPLEMENT TO INDENTURE DATED AS OF SEPTEMBER
30, 2011

          FIRST
SUPPLEMENTAL INDENTURE, dated as of September 30, 2011 (the “First
Supplemental Indenture”), by and among XL Group Ltd., a Cayman Islands exempted
company (the “Company”), having its principal office at XL House, One
Bermudiana Road, Hamilton, HM 08, Bermuda, XL Group Public Limited Company, an
Irish public limited company (the “Guarantor”), having its principal
office at No. 1 Hatch Street Upper, 4th Floor, Dublin 2, Ireland and Wells
Fargo Bank, National Association, a national banking association, as trustee
hereunder (the “Trustee”).

          WHEREAS,
the Company, the Guarantor and the Trustee have as of September 30, 2011
entered into an Indenture (the “Base Indenture”) providing for the
issuance from time to time by the Company of Securities (as defined in Section
1.01 of the Base Indenture) and the Guarantee (as defined in Section 1.01 of
the Base Indenture) by the Guarantor;

          WHEREAS,
pursuant to Section 9.01(11) of the Base Indenture, the Company, the Guarantor
and the Trustee may enter into supplemental indentures to establish the form or
terms of Securities of any series as permitted by Sections 2.01 and 3.01 of the
Base Indenture;

          WHEREAS,
the Company desires to issue a series of Securities under the Base Indenture
and has duly authorized the creation and issuance of such series of Securities
and the execution and delivery of this First Supplemental Indenture to modify
the Base Indenture and provide certain additional provisions as hereinafter set
forth (the Base Indenture, as amended and supplemented by the First
Supplemental Indenture, is hereinafter referred to as the “Indenture”);

          WHEREAS,
the Company and the Guarantor deem it advisable to enter into this First
Supplemental Indenture for the purposes of establishing the terms of such
series of Securities and providing for the rights, obligations and duties of
the Trustee with respect to such series of Securities;

          WHEREAS,
the execution and delivery of this First Supplemental Indenture has been
authorized by a resolution of the Board of Directors of each of the Company and
the Guarantor, or a duly authorized committee thereof;

          WHEREAS,
concurrently with the execution hereof, the Company has delivered an Officers’
Certificate and has caused its counsel to deliver to the Trustee an Opinion of
Counsel; and

          WHEREAS,
all conditions and requirements of the Base Indenture necessary to make this
First Supplemental Indenture a valid, binding and legal instrument in
accordance with its terms have been performed and fulfilled by the parties
hereto and the execution and delivery thereof have been in all respects duly
authorized by the parties hereto.

          NOW,
THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

          For
and in consideration of the mutual premises and agreements herein contained,
the Company, the Guarantor and the Trustee covenant and agree, for the equal
and proportionate benefit of all Holders of the 2021 Notes (as defined below),
as follows:

ARTICLE I

DEFINITIONS

          Section
1.1 Definition of Terms.

          Unless
otherwise provided herein or unless the context otherwise requires:

          (a)
a term defined in the Base Indenture has the same meaning when used in this
First Supplemental Indenture;

          (b)
a term defined anywhere in this First Supplemental Indenture has the same
meaning throughout;

          (c)
the singular includes the plural and vice versa;

          (d)
headings are for convenience of reference only and do not affect
interpretation; and

          (e)
the following terms have the meanings given to them in this Section 1.1(e):

          “Additional
Amounts” has the meaning set forth in Section 2.13(b).

          “Comparable
Treasury Issue” means the United States Treasury security selected
as having a maturity comparable to the remaining term of the 2021 Notes to be
redeemed that would be used, at the time of selection and under customary
financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the 2021 Notes.

2

          “Comparable
Treasury Price” means, with respect to any Redemption Date, the
average of the Reference Treasury Dealer Quotations for the Redemption Date,
after excluding the highest and lowest Reference Treasury Dealer Quotations, or
if the Trustee obtains fewer than four Reference Treasury Dealer Quotations,
the average of all Reference Treasury Dealer Quotations.

          “Depositary”
has the meaning set forth in Section 2.7.

          “Designated
Subsidiary” means any present or future consolidated subsidiary of
the Guarantor that is a regulated insurance company, the assets of which
constitute at least 20% of the Guarantor’s consolidated assets.

          “Global Note”
means a Global Security representing the 2021 Notes.

          “Issue Date”
means September 30, 2011.

          “Pricing Date”
means September 27, 2011.

          “Reference
Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any Redemption Date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day before the Redemption Date.

          “Reference
Treasury Dealers” means (i) Morgan Stanley & Co. LLC and its
successors; and (ii) three other primary U.S. government securities dealers in
New York City the Company selects. If any of the foregoing ceases to be a
primary U.S. government securities dealer in New York City, the Company must
substitute another primary U.S. government securities dealer in New York City.

          “Relevant
Date” means, in respect of any payment, the date on which such
payment first becomes due and payable, but if the full amount of the moneys
payable has not been received by the Trustee on or prior to such due date, it
means the first date on which, the full amount of such moneys having been so
received and being available for payment to Holders, notice to that effect
shall have been duly given to the Holders of the 2021 Notes.

          “Tax Event”
means if the Company or the Guarantor determines that, as a result of (1) any
change in, or amendment to, the law or treaties (or any regulations or rulings
promulgated thereunder), including the enactment of any legislation or the
publication of any regulatory determination, of the Cayman Islands, Ireland,
Bermuda, or any political subdivision thereof or any authority or agency
therein having power to tax, or any other jurisdiction from or through which
the Company or the Guarantor makes a payment on the 2021 Notes or in which the
Company or the Guarantor generally becomes subject to taxation (each such
jurisdiction, a “Taxing Jurisdiction”); or (2) any change in, or
amendment to, a position regarding the application, administration or
interpretation of such laws, treaties, regulations or rulings (including a
holding, judgment or order by a court of competent jurisdiction) (each of the
foregoing in clauses (1) and (2), a “Change In Tax Law”), (A) the
Company or Guarantor is required, or on the next Interest Payment Date in
respect of the 2021 Notes would be required to pay Additional Amounts with
respect to the 2021 Notes pursuant to Section 2.13(b) (assuming, in the case of
the Guarantor, the Guarantor would be unable, for reasons outside its control,
to

3

procure
payment by the Company) determined without reference to any interest, fees,
penalties or other additions to tax and (B) such requirement cannot be avoided
by taking commercially reasonable measures available to the Company or the
Guarantor; provided that the Change in Tax Law becomes effective on or
after the Pricing Date, or in the case of a successor entity to the Company or
the Guarantor, the Change in Tax Law becomes effective after the date that such
successor entity first becomes an obligor on the 2021 Notes (unless the Change
in Tax Law had already occurred prior to such date, but on or after the Pricing
Date, with respect to the applicable original entity).

          
“Treasury
Rate” means, with respect to any Redemption Date, the rate per year
equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date. The Treasury Rate shall be calculated on the third
Business Day preceding the Redemption Date.

ARTICLE II

CREATION OF THE 2021 NOTES

          Section
2.1 Designation of Series.

          Pursuant
to the terms hereof and Sections 2.01 and 3.01 of the Base Indenture, the
Company hereby creates a series of its Securities designated as the 5.75%
Senior Notes due 2021 (the “2021 Notes”), which 2021 Notes shall be
deemed “Securities” for all purposes under the Indenture.

          Section
2.2 Form of 2021 Notes.

          The
definitive form of the 2021 Notes shall be substantially in the form set forth
in Exhibit A attached hereto, which is incorporated herein and made part
hereof.

          The
Final Maturity of the 2021 Notes shall be October 1, 2021.

          Section
2.3 Interest and Interest Rate Reset.

          (a)
The 2021 Notes will bear interest from the Issue Date or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, as
the case may be, to maturity or early redemption, as the case may be, at the
rate of 5.75% per annum payable semi-annually on April 1 and October 1 of each
year, commencing on April 1, 2012, to the persons in whose names the 2021 Notes
were registered at the close of business on the preceding March 15 and
September 15, respectively.

          (b)
Interest on the 2021 Notes will be computed on the basis of a 360-day year
comprised of twelve 30-day months. The amount of interest payable for any
period shorter than a full semi-annual period for which interest is computed
will be computed on the basis of the actual number of days elapsed in the
180-day period.

4

          Section
2.4 Limit on Amount of 2021 Notes.

          (a)
The 2021 Notes initially will be limited in aggregate principal amount to $400
million and may, upon execution of this First Supplemental Indenture, be
executed by the Company and delivered to the Trustee for authentication, and
the Trustee shall thereupon authenticate and deliver said 2021 Notes in
accordance with a Company Order.

          (b)
The Company may issue from time to time, without giving notice to or seeking
the consent of the Holders of the 2021 Notes, additional notes having the same
terms as the 2021 Notes (except for the initial public offering price, first
Interest Payment Date and the Issue Date). Any such additional notes, together
with the 2021 Notes, will constitute a single series of Securities under the
Indenture.

          Section
2.5 Nature of 2021 Notes/Minimum Denomination.

                    (a)
The 2021 Notes shall constitute senior, unsecured and unsubordinated obligations
of the Company and shall rank pari passu with all other unsecured and
unsubordinated indebtedness of the Company and the Guarantor from time to time
outstanding.

                    (b)
The 2021 Notes shall be issuable only in registered form and without coupons in
denominations of $2,000 and any integral multiples of $1,000 in excess thereof.

          Section
2.6 No Sinking Fund.

          The
2021 Notes do not have the benefit of any mandatory redemption or sinking fund
obligation and are not redeemable at the option of the Holders.

          Section
2.7 Issuance of 2021 Notes and Payment.

                    (a)
The 2021 Notes, on original issuance, shall be issued in the form of one fully
registered Global Note registered in the name of The Depository Trust Company,
as Depositary (the “Depositary”), or its nominee, and deposited with the
Trustee, as custodian for the Depositary, for credit by the Depositary to the
respective accounts of beneficial owners of the 2021 Notes represented thereby
(or such other accounts as they may direct).

                    (b)
The payment of principal of and the interest on the 2021 Notes will be payable
at the Corporate Trust Office or, at the option of the Company, by check mailed
to each Holder at its address set forth in the Security Register; provided,
however, that if a Holder has given wire transfer instructions to the
Company and the Paying Agent and Security Registrar at least ten Business Days
prior to the applicable payment date, payment of principal of and the interest
on the 2021 Notes will be payable by wire transfer of immediately available
funds to the account specified in such instructions.

          Section
2.8 2021 Notes Not Convertible or Exchangeable.

          The
2021 Notes will not be convertible or exchangeable for other securities or
property.

5

          Section
2.9 Redemption.

          Pursuant
to Section 3.01(6) and Section 12.01 of the Base Indenture, so long as any of
the 2021 Notes are Outstanding, the following provisions shall be applicable to
the 2021 Notes:

                    (a)
The 2021 Notes will be redeemable, in whole at any time or in part from time to
time, at the Company’s option, at a redemption price equal to accrued and
unpaid interest on the principal amount of the 2021 Notes being redeemed to the
Redemption Date plus the greater of: (A) 100% of the principal amount of the
2021 Notes to be redeemed, and (B) the sum of the present values of the
remaining scheduled payments of principal and interest on the 2021 Notes to be
redeemed (not including any portion of such payments of interest accrued to the
Redemption Date) discounted to the Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate, plus 50 basis points.

                    (b)
If a Tax Event occurs and is continuing, the Company may, at its option, redeem
the 2021 Notes in whole, but not in part, at any time at a redemption price
equal to 100% of the principal amount of the 2021 Notes, plus accrued and
unpaid interest, if any, to the Redemption Date and Additional Amounts, if any,
then due or that will become due on the date fixed for redemption as a result
of such redemption. Installments of interest on 2021 Notes which are due and
payable on or prior to a Redemption Date will be payable to Holders of the 2021
Notes registered as such at the close of business on the relevant record dates.

                    (c)
(i) Notwithstanding Section 12.04 of the Base Indenture, any notice of
redemption pursuant to Section 2.9(a) or (b) shall (A) be sufficient if instead
of setting forth a specific price with respect to the Redemption Price, it sets
forth the manner of calculation thereof and (B) be mailed to the Holders not
less than 30 nor more than 60 days prior to the Redemption Date.

	
  

 	
  

 
	
  

 	
           (ii)
 Notwithstanding the foregoing, in case of a Tax Event redemption, no such
 notice of redemption will be given (A) earlier than 90 days prior to the
 earliest date on which the applicable payor would be obliged to make such
 payment or withholding if a payment in respect of 2021 Notes by it were then
 due and (B) unless at the time such notice is given, such requirement to pay
 such Additional Amounts remains in effect. Prior to the publication or
 mailing of any notice of redemption of 2021 Notes pursuant to the foregoing,
 the Company will deliver to the Paying Agent and Trustee (x) an Officers’
 Certificate stating that the Company is entitled to effect such redemption
 and setting forth a statement of facts showing that any factual conditions
 precedent to the Company’s right to so redeem have been satisfied and (y) a
 legal opinion of an outside nationally recognized tax counsel or of a tax
 counsel that is otherwise reasonably acceptable to the Paying Agent, to the effect
 that the applicable Tax Event has occurred (which, for the avoidance of
 doubt, shall not be required to include an opinion as to whether
 “commercially reasonable efforts” could be undertaken to avoid the otherwise
 applicable requirement, as referenced in clause (B) of the definition of “Tax
 Event” in Section 1.1(e)).

 

          Section
2.10 Guarantee.

          The
2021 Notes are entitled to the benefit of the Guarantee set forth in Article XI
of the Base Indenture.

6

          Section
2.11 Place of Payment.

          The
Paying Agent for the 2021 Notes shall initially be the Trustee, and the Place
of Payment for the 2021 Notes shall initially be the Corporate Trust Office,
which as of the date hereof for such purpose is located at 45 Broadway, 14th Floor,
New York, New York 10006. The Company may from time to time designate one or
more additional offices or agencies where 2021 Notes may be presented or
surrendered for payment.

          Section
2.12 Events of Default.

          The
following shall constitute additional Events of Default pursuant to Section
5.01 of the Base Indenture with respect to the 2021 Notes with the same effect
as if expressly set forth in such Section 5.01:

                    (a)
default by the Company under any instrument or instruments under which there is
or may be secured or evidenced any of the Company’s indebtedness (other than
the 2021 Notes) having an outstanding principal amount of $50,000,000 (or its
equivalent in any other currency or currencies) or more, individually or in the
aggregate, that has caused the holders thereof to declare such indebtedness to
be due and payable prior to its stated maturity, unless such declaration has
been rescinded within 30 days;

                    (b)
default by the Company in the payment when due of the principal of or premium,
if any, on any bond, debenture, note or other evidence of the Company’s
indebtedness, in each case for money borrowed, or in the payment of principal
or premium, if any, under any mortgage, indenture, agreement or instrument
under which there may be issued or by which there may be secured or evidenced
any indebtedness of the Company for money borrowed, which default for payment
of principal or premium, if any, is in an aggregate principal amount exceeding
$50,000,000 (or its equivalent in any other currency or currencies), if such
default shall continue unremedied or unwaived for more than 30 days after the
expiration of any grace period or extension of the time for payment applicable
thereto;

                    (c)
default in the payment of any Additional Amounts payable with respect to
interest on any 2021 Notes, when such Additional Amounts become due and
payable, and continuance of such default for a period of 30 days; and

                    (d)
default in the payment of any Additional Amounts payable with respect to any
principal of or premium, if any, on any 2021 Notes, when such Additional
Amounts become due and payable either at maturity, upon any redemption, by
declaration of acceleration or otherwise.

          In
addition, with respect to the 2021 Notes, the reference to “60 days” in Section
5.01(1) of the Base Indenture shall be amended to be “30 days” with respect to
the 2021 Notes.

          The
Company shall deliver to the Trustee, within 30 days after the occurrence
thereof, written notice of any Event of Default or any event which, after
notice or lapse of time or both, would constitute an Event of Default.

          Section
2.13 Covenants.

          The
2021 Notes shall be entitled to the benefit of each of the covenants in Article
X of the Base Indenture and the following additional covenants (each of which
shall be deemed to be a provision of the

7

Indenture and,
when referred to as a provision of the Indenture, shall be identified by
reference to the Section number that is set forth immediately preceding the
covenant):

                    (a)
SECTION 10.09. Limitation on Liens on Stock of Designated Subsidiaries.
The Guarantor covenants that, so long as any 2021 Notes are outstanding, the
Guarantor will not, nor will the Guarantor permit any Designated Subsidiary to,
create, assume, incur, guarantee or otherwise permit to exist any indebtedness
evidenced by notes, debentures, bonds or similar instruments, which is secured
by any mortgage, pledge, lien, security interest or other encumbrance upon any
shares of Capital Stock of any Designated Subsidiary (whether such shares of
stock are now owned or hereafter acquired) without effectively providing
concurrently that the 2021 Notes will be secured equally and ratably with such
indebtedness for at least the time period such other indebtedness is so
secured. The term “Capital Stock” for the purpose of this Section 10.09 shall
include preferred stock, but exclude any debt securities convertible into such
Capital Stock.

                    (b)
SECTION 10.10. Additional Amounts. All amounts payable (whether in
respect of principal, interest or otherwise) in respect of the 2021 Notes will
be made free and clear of and without withholding or deduction for or on
account of any present or future taxes, duties, levies, assessments or
governmental charges of whatever nature imposed or levied by or on behalf of
any Taxing Jurisdiction, unless the withholding or deduction of such taxes,
duties, levies, assessments or governmental charges is required by law. In that
event, the Company or the Guarantor will pay, or cause to be paid, such
additional amounts as may be necessary in order that the net amounts receivable
by a Holder after such withholding or deduction (including any withholding or
deduction on such payment of additional amounts) shall equal the respective
amounts that would have been receivable by such Holder had no such withholding
or deduction been required (“Additional Amounts”), except that no such
Additional Amounts shall be payable in relation to any payment (including a
payment made in connection with a redemption) in respect of any of the 2021
Notes (a) to, or to a third party on behalf of, a Person who would be able to
avoid such withholding or deduction by complying with such Person’s statutory
requirements or by making a declaration of non-residence or similar claim for
exemption (including a claim under an applicable double taxation treaty) but,
in either case, fails to do so, or is liable for such taxes, duties, levies,
assessments or governmental charges in respect of such 2021 Note by reason of
such Person (or such third party) having some connection with (including,
without limitation, being a citizen of, being incorporated or engaged in a trade
or business in, or having a residence or principal place of business or other
presence in) the Taxing Jurisdiction, other than (i) the mere holding of such
2021 Note; (ii) the receipt of principal, interest or other amount in respect
of such 2021 Note; or (iii) the mere enforcement of rights with respect to such
2021 Note; (b) presented for payment more than 30 days after the Relevant Date,
except to the extent that the relevant Holder would have been entitled to such
Additional Amounts on presenting the same for payment on or before the
expiration of such period of 30 days; (c) to a fiduciary, a partnership or
person who is not the beneficial owner of a 2021 Note, if and to the extent
that, as a result of an applicable tax treaty, no Additional Amounts would have
been payable had the beneficiary, partner or beneficial owner owned the 2021
Note directly; (d) on account of any inheritance, gift, estate, personal
property, stamp, sales or transfer or similar taxes, duties, levies,
assessments or similar governmental charges; or (e) on account of any taxes,
duties, levies, assessments or governmental charges that are payable otherwise
than by withholding from payments in respect of such 2021 Note.

          In
the event that payments in respect of the 2021 Notes are subject to withholding
or deduction for or on account of any taxes, the Company or the Guarantor will
(i) make any required withholding or deduction and (ii) remit the full amount
deducted or withheld to the relevant Taxing Jurisdiction in accordance with
applicable law. The Company and the Guarantor will use commercially reasonable
efforts to obtain certified copies of tax

8

receipts
evidencing the payment of any taxes so deducted or withheld from each relevant
Taxing Jurisdiction imposing such taxes and will use commercially reasonable
efforts to provide or make available such certified copies (or other
documentary evidence establishing the payment of such taxes) to each Holder.

          Any
reference in the Indenture to principal, premium or interest in respect of the
2021 Notes, any redemption amount and any other amounts in the nature of
principal shall be deemed also to refer to any Additional Amounts that may be
payable under the Indenture, and the express mention of the payment of
Additional Amounts (if applicable) in any provision hereof shall not be
construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

          Except
as otherwise provided in or pursuant to the Indenture, if the 2021 Notes
require the payment of Additional Amounts, at least 30 days prior to each date
on which any payments under or with respect to the 2021 Notes are due and
payable (unless such obligation to pay Additional Amounts arises shortly before
or after the 30th day prior to such date, in which case it shall be promptly
thereafter) the Company or its designee shall furnish to the Trustee, the
Registrar and the Paying Agent an Officers’ Certificate stating the fact that
Additional Amounts will be payable, the amounts so payable, and any other
information to enable the Trustee or such Paying Agent to pay such Additional
Amounts to Holders on the payment date.

          The
Company or the Guarantor will pay any present or future stamp, court or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise in any jurisdiction from the execution, delivery or
registration of any 2021 Notes or any other document or instrument referred to
therein (other than a transfer of the 2021 Notes), or the receipt of any
payments with respect to the 2021 Notes, excluding any such taxes, charges or
similar levies imposed by any jurisdiction outside the Taxing Jurisdictions in
which a Paying Agent is located, other than those resulting from, or required to
be paid in connection with, the enforcement of the 2021 Notes, the Indenture or
any other such document or instrument following the occurrence of any Event of
Default with respect to the 2021 Notes.

ARTICLE III

APPOINTMENT OF THE TRUSTEE FOR THE 2021 NOTES

          Section
3.1 Appointment of Trustee.

          Pursuant
and subject to the Indenture, the Company and the Guarantor hereby appoint the
Trustee as trustee to act on behalf of the Holders of the 2021 Notes, and as
the principal Paying Agent and Security Registrar for the 2021 Notes, effective
upon execution and delivery of this First Supplemental Indenture. By execution,
acknowledgment and delivery of this First Supplemental Indenture, the Trustee
hereby accepts appointment as Trustee, Paying Agent and Security Registrar with
respect to the 2021 Notes, and agrees to perform such trusts upon the terms and
conditions set forth in the Base Indenture and in this First Supplemental
Indenture.

          Section
3.2 Rights, Powers, Duties and Obligations of the Trustee.

          Any
rights, powers, duties and obligations by any provisions of the Indenture
conferred or imposed upon the Trustee shall, insofar as permitted by law, be
conferred or imposed upon and exercised or performed by the Trustee with respect
to the 2021 Notes.

9

ARTICLE IV

MISCELLANEOUS

          Section
4.1 Application of First Supplemental Indenture.

          Each
and every term and condition contained in this First Supplemental Indenture
that modifies, amends or supplements the terms and conditions of the Base
Indenture with respect to the 2021 Notes shall apply only to the 2021 Notes
created hereby and not to any past or future series of Securities issued under
the Base Indenture.

          Section
4.2 Benefits of First Supplemental Indenture.

          Nothing
contained in this First Supplemental Indenture shall or shall be construed to
confer upon any Person other than a Holder of the 2021 Notes, the Company, the
Guarantor and the Trustee any right or interest to avail itself or himself, as
the case may be, of any benefit under any provision of the Base Indenture or
this First Supplemental Indenture.

          Section
4.3 Amendment of First Supplemental Indenture.

          The
Company, the Guarantor and the Trustee, at any time and from time to time, may
amend, modify or supplement this First Supplemental Indenture in accordance
with the provisions of Article IX of the Base Indenture.

          Section
4.4 Effective Date.

          This
First Supplemental Indenture shall be effective as of the date first above
written and upon the execution and delivery hereof by each of the parties
hereto.

          Section
4.5 Governing Law; Waiver of Jury Trial; Submission to Jurisdiction;
Judgment Currency.

          THIS
FIRST SUPPLEMENTAL INDENTURE AND EACH 2021 NOTE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS OF SUCH STATE.

          EACH
OF THE COMPANY, THE GUARANTOR AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS FIRST SUPPLEMENTAL
INDENTURE, THE 2021 NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

	
  

 	
  

 
	
  

 	
 Each of the
 Company, the Guarantor and the Trustee hereby submits to the nonexclusive
 jurisdiction of the United States District Court for the Southern District of
 New York and of any New York state court sitting in the Borough of Manhattan
 in New York City for the purposes of all legal proceedings 

 

10

	
  

 	
  

 
	
  

 	
 arising out
 of or relating to the 2021 Notes, the Indenture or the transactions
 contemplated thereby. The Company, the Guarantor and the Trustee irrevocably
 waive, to the fullest extent permitted by applicable law, any objection which
 they may now or hereafter have to the laying of the venue of any such
 proceeding brought in such a court and any claim that any such proceeding
 brought in such a court has been brought in an inconvenient forum. Each of
 the Company and the Guarantor hereby designates and appoints Puglisi &
 Associates, 850 Library Avenue, Suite 204, Newark, Delaware 19711, as its
 authorized agent upon which process may be served in any legal suit, action
 or proceeding arising out of or relating to the Indenture which may be
 instituted in any federal or state court in the Borough of Manhattan, The
 City of New York, New York, and agrees that service of process upon such
 agent, and written notice of said service to the Company or the Guarantor, as
 applicable, by the Person serving the same, shall be deemed in every respect
 effective service of process upon the Company or the Guarantor, as
 applicable, in any such suit, action or proceeding and further designate its
 domicile, the domicile of Puglisi & Associates specified above and any
 domicile Puglisi & Associates may have in the future as its domicile to
 receive any notice hereunder (including service of process). If for any
 reason Puglisi & Associates (or any successor agent for this purpose)
 shall cease to act as agent for service of process as provided above, the
 Company and the Guarantor will promptly appoint a successor agent for this
 purpose reasonably acceptable to the Trustee. The Company and the Guarantor
 agree to take any and all actions as may be necessary to maintain such
 designation and appointment of such agent in full force and effect.

 

          Each
of the Company and the Guarantor agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of, or premium of, or interest or other amount on the
2021 Notes (the “Required Currency”) into a currency in which a judgment
will be rendered (the “Judgment Currency”), the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the
Trustee could purchase in The City of New York the requisite amount of the
Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which a final unappealable judgment is entered and (b) its
obligations under the Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, or any recovery pursuant to
any judgment (whether or not entered in accordance with clause (a)), in any
currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable and (iii) shall not be affected by
judgment being obtained for any other sum due under the Indenture. For purpose
of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York or a day on which
banking institutions in The City of New York are authorized or obligated by
law, regulation or executive order to be closed.

          Section
4.6 Counterparts.

          This
First Supplemental Indenture may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

11

          Section
4.7 Ratification of Base Indenture.

          The
Base Indenture, as supplemented by this First Supplemental Indenture, is in all
respects ratified and confirmed, and this First Supplemental Indenture shall be
deemed part of the Base Indenture in the manner and to the extent herein and
therein provided.

          Section
4.8 Validity and Sufficiency.

          The
Trustee shall not be responsible in any manner whatsoever for or in respect of
the validity or sufficiency of this First Supplemental Indenture or for or in
respect of the recitals contained herein, all of which are made solely by the
Company and the Guarantor.

 [Remainder of page intentionally blank]

12

          IN
WITNESS WHEREOF, each party hereto has executed this First Supplemental
Indenture as of the day and year first before written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 XL GROUP
 LTD.,

 
	
  

 	
 as Issuer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/ SIMON D. RICH

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 	
 Simon D.
 Rich

 
	
  

 	
  

 	
 Title:

 	
 Director

 

13

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 SIGNED AND
 DELIVERED AS A DEED FOR AND ON BEHALF OF

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 XL GROUP
 PUBLIC LIMITED COMPANY

 
	
  

 	
 as Guarantor

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 BY ITS
 LAWFULLY APPOINTED ATTORNEY

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
      /s/ SIMON D. RICH

 
	
  

 	

 

 
	
  

 	
 Name:

 	
 Simon D.
 Rich

 
	
  

 	
 Title: 

 	
 Senior Vice
 President & Global Tresasurer

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 IN THE
 PRESENCE OF

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Witness

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
      /s/ ROBERT HAWLEY

 
	
  

 	

 

 
	
  

 	
 Name:

 	
 Robert
 Hawley

 
	
  

 	
 Address:

 	
 XL House

 
	
  

 	
  

 	
 One
 Bermudiana Road

 
	
  

 	
  

 	
 Hamilton HM
 08, Bermuda

 

14

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION,

 
	
  

 	
 as Trustee

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
      /s/ RAYMOND DELLI COLLI

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 	
 Raymond
 Delli Colli

 
	
  

 	
  

 	
 Title:

 	
 Vice
 President

 

15

EXHIBIT A

FORM OF 2021 NOTE

[For Global
Notes, insert: THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY,
THE GUARANTOR, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS
SECURITY FOR ALL PURPOSES, INCLUDING THE PAYMENT OF PRINCIPAL AND INTEREST.

UNLESS AND
UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES
REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE (I) BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR (II) BY A NOMINEE
OF THE DEPOSITARY OR THE DEPOSITARY TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITARY.]

[If the
Depository is The Depository Trust Company, insert: UNLESS THIS SECURITY IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55
WATER STREET, NEW YORK, NEW YORK) TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT AND ANY SECURITY ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.]

A-1

	
  

 	
  

 
	
  

 	
 No.

 
	
  

 	
 CUSIP No. 

 
	
  

 	
 $_______________

 

XL GROUP LTD.

5.75% SENIOR NOTES DUE 2021

          XL
GROUP LTD., an exempted limited company duly organized and existing under the
laws of the Cayman Islands (the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to __________________ the principal sum of
________________ United States dollars (U.S.$______________) [For Global Notes,
insert:, as such amount may be increased or decreased as set forth on the
Schedule of Increases or Decreases in Global Note annexed hereto,] on October
1, 2021 (such date is hereinafter referred to as the “Stated Maturity”),
and to pay interest thereon, from September 30, 2011, or from the most recent
Interest Payment Date (as defined below) to which interest has been paid or
duly provided for, at the rate of 5.75% per annum to, but excluding, the
relevant Interest Payment Date, until the Stated Maturity or early redemption.

          Interest
on this 2021 Note initially shall be payable semi-annually in arrears on April
1 and October 1 of each year (each, an “Interest Payment Date”),
commencing April 1, 2012 through and including the Stated Maturity or early
redemption. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this 2021 Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the March 15 and September 15, respectively (whether
or not a Business Day) preceding the relevant Interest Payment Date.

          Any
such interest not so punctually paid or duly provided for will forthwith cease
to be payable to the Holder on such Regular Record Date and may be paid to the
Person in whose name this 2021 Note (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice of which shall be
given to Holders of the 2021 Notes not less than 10 days prior to such Special
Record Date and shall otherwise be payable, all as more fully provided in the
Indenture.

          Principal
of and the interest on the 2021 Notes will be payable at the Corporate Trust
Office, or, at the option of the Company, by check mailed to each Holder at its
address set forth in the Security Register; provided, however,
that if a Holder has given wire transfer instructions to the Company and the
Paying Agent and Security Registrar at least ten Business Days prior to the
applicable payment date, principal of and the interest on the 2021 Notes will
be payable by wire transfer of immediately available funds to the account
specified in such instructions.

A-2

          Interest
on the 2021 Notes will be computed on the basis of a 360-day year comprised of
twelve 30-day months. The amount of interest payable for any period shorter
than a full semi-annual period for which interest is computed will be computed
on the basis of the actual number of days elapsed in the 180-day period.

          Reference
is hereby made to the further provisions of this 2021 Note set forth on the
reverse hereof, which further provisions shall for all purposes have the same
effect as if fully set forth at this place.

          Unless
the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by the manual signature of one of its
authorized signatories, this 2021 Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

A-3

          IN
WITNESS WHEREOF, the Company has caused this 2021 Note to be executed and
delivered as a deed.

	
  
 	
  
 	
  
 	
  
 
	
  
 	
 Dated:
 
	
  
 	
  
 
	
  
 	
 XL GROUP
 LTD.
 
	
  
 	
  
 
	
  
 	
 By:
 	
  
 	
  
 
	
  
 	
  
 	

 
 	
  
 
	
  
 	
  
 	
 Name:
 
	
  
 	
  
 	
 Title:
 
	
  
 	
  
 
	 	 
	 	 
	
  
 	
 By:
 	
  
 	
  
 
	
  
 	
  
 	

 
 	
  
 
	
  
 	
  
 	
 Name:
 
	
  
 	
  
 	
 Title:
 

A-4

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This
is one of the Securities of the series designated herein referred to in the
within-mentioned Indenture.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Dated:

 
	
  

 	
  

 
	
  

 	
 WELLS FARGO
 BANK, NATIONAL ASSOCIATION,

 as Trustee

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Authorized
 Signatory

 

A-5

 [FORM OF REVERSE]

          This
2021 Note is one of a duly authorized issue of securities of the Company
designated as its “5.75% Senior Notes due 2021” (herein sometimes referred to
as the “2021 Notes”), initially limited in aggregate principal amount to
$400 million, issued under and pursuant to an Indenture, dated as of September
30, 2011 (the “Base Indenture”), duly executed and delivered by and
among the Company, as issuer, XL Group Public Limited Company, an Irish public
limited company, as guarantor (the “Guarantor”) and Wells Fargo Bank,
National Association, as trustee (the “Trustee”), as supplemented by the
First Supplemental Indenture, dated as of September 30, 2011 (the “First
Supplemental Indenture”), duly executed and delivered by and among the
Company, the Guarantor and the Trustee (such Base Indenture as amended and
supplemented by the First Supplemental Indenture, the “Indenture”), to
which the Indenture and all subsequent indentures supplemental thereto relating
to the 2021 Notes reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Guarantor, the Trustee and the Holders of the 2021 Notes and of the terms
upon which the 2021 Notes are, and are to be, authenticated and delivered.

          The
2021 Notes are issuable only in registered form without coupons, in
denominations of $2,000 and any integral multiple of $1,000 in excess thereof.
As provided in the Indenture and subject to certain limitations therein set
forth, 2021 Notes so issued are exchangeable for a like aggregate principal
amount of 2021 Notes of a different authorized denomination, as requested by
the Holder surrendering the same.

          The
2021 Notes will be redeemable, in whole at any time or in part from time to
time, at the Company’s option, at a redemption price equal to the accrued and
unpaid interest on the principal amount of the 2021 Notes being redeemed to the
Redemption Date plus the greater of: (A) 100% of the principal amount of the
2021 Notes to be redeemed, and (B) the sum of the present values of the
remaining scheduled payments of principal and interest on the 2021 Notes to be
redeemed (not including any portion of such payments of interest accrued to the
Redemption Date) discounted to the Redemption Date on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate, plus 50 basis points, as provided in, and subject to the terms of, the
Indenture.

          If
a Tax Event occurs and is continuing, the Company may, at its option, redeem
the 2021 Notes in whole, but not in part, at any time at a redemption price
equal to 100% of the principal amount of the 2021 Notes, plus accrued and
unpaid interest, if any, to the Redemption Date and Additional Amounts, if any,
then due or that will become due on the Redemption Date as a result of the
redemption, as provided in, and subject to the terms of, the Indenture.

          No
sinking fund is provided for the 2021 Notes.

          The
2021 Notes shall constitute the senior, unsecured and unsubordinated
obligations of the Company and shall rank pari passu with all other unsecured and
unsubordinated indebtedness of the Company and the Guarantor from time to time
outstanding.

          In
the case of an Event of Default described in Section 5.01(5) or 5.01(6) of the
Indenture, all unpaid principal of and accrued interest and Additional Amounts
on the 2021 Notes then Outstanding shall be due and payable immediately without
any declaration or other act on the part of the Trustee or the Holders of any
2021 Notes. In the case of all other Events of Default, if any such Event of
Default shall occur and be continuing, the 

A-6

principal of
all of the 2021 Notes, together with accrued interest to the date of
declaration, may be declared due and payable in the manner and with the effect
provided in the Indenture.

          The
Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the Guarantor and the rights of the Holders of the Securities of each series to
be affected under the Indenture at any time by the Company, the Guarantor and
the Trustee with the written consent of the Holders of not less than a majority
in principal amount of the Securities at the time Outstanding and affected
thereby. The Indenture also contains, with certain exceptions as therein
provided, provisions permitting Holders of not less than a majority in
principal amount of the Securities of any series at the time Outstanding, on
behalf of the Holders of all the Securities of such series, to waive compliance
by the Company and the Guarantor with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this 2021 Note shall be conclusive and
binding upon such Holder and upon all future Holders of this 2021 Note and of
any 2021 Note issued in exchange herefor or in lieu hereof whether or not notation
of such consent or waiver is made upon this 2021 Note or such other 2021 Note.

          As
provided in and subject to the provisions of the Indenture, the Holder of this
2021 Note shall not have the right to institute any proceeding with respect to
the Indenture or for the appointment of a receiver or trustee or for any other
remedy thereunder, unless (i) such Holder shall have previously given the
Trustee written notice of a continuing Event of Default, (ii) the Holders of
not less than 25% in principal amount of the 2021 Notes that are Outstanding
shall have made a written request to the Trustee to institute proceedings in
respect of such Event of Default as Trustee and offered the Trustee indemnity
satisfactory to it, (iii) the Trustee shall have failed to institute any such
proceeding for 60 days after receipt of such notice, request and offer of
indemnity, and (iv) the Trustee shall not have received from the Holders of a
majority in principal amount of the 2021 Notes that are Outstanding a direction
inconsistent with such written request during such 60-day period. The foregoing
shall not apply to any suit instituted by any Holder of this 2021 Note for the
enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein.

          This
2021 Note is entitled to the benefit of the Guarantee set forth in Article XI
of the Indenture.

          No
reference herein to the Indenture and no provision of this 2021 Note or of the
Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any, and
interest on this 2021 Note at the times, places and rate, and in the coin or
currency, herein prescribed.

          As
provided in the Indenture and subject to certain limitations therein set forth,
the transfer of this 2021 Note is registrable on the Security Register upon
surrender of this 2021 Note for registration of transfer at the Corporate Trust
Office of the Trustee or at such other office or agency of the Company as may
be designated by it for such purpose in the Borough of Manhattan, The City of
New York (which shall initially be an office or agency of the Trustee), or at
such other offices or agencies as the Company may designate, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Security Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing, and thereupon one or more new 2021 Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees by the Security Registrar. No service
charge shall be made for any such 

A-7

registration
of transfer or exchange, but the Company may require payment of a sum
sufficient to recover any tax or other governmental charge payable in
connection therewith.

          Prior
to due presentation of this 2021 Note for registration of transfer, the
Company, the Guarantor, the Trustee and any agent of the Company, the Guarantor
or the Trustee may treat the Person in whose name this 2021 Note is registered
as the owner thereof for all purposes, whether or not such 2021 Note be
overdue, and none of the Company, the Guarantor, the Trustee or any such agent
shall be affected by notice to the contrary.

          No
recourse for the payment of the principal of (and premium, if any on) or
interest on this 2021 Note and no recourse under or upon any obligation,
covenant or agreement of the Company or the Guarantor in the Indenture or any
indenture supplemental thereto or in any 2021 Note, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, employee, agent, officer or director or subsidiary, as such, past,
present or future, of the Company, the Guarantor or of any successor entity
thereof, either directly or through the Company, the Guarantor or any successor
entity, whether by virtue of any constitution, statute or rule of law or by the
enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of consideration for the issue
hereof, expressly waived and released.

          [For
Global Notes, insert: This 2021 Note is a Global Note and is subject to the
provisions of the Indenture relating to Global Notes, including the limitations
in Section 2.03 of the Base Indenture on transfers and exchanges of Global
Notes.]

          THE
INDENTURE, THE GUARANTEE AND THIS 2021 NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAWS OF SUCH STATE.

          All
capitalized terms used in this 2021 Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

A-8

ABBREVIATIONS

          The
following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 TEN COM

 	
 – as tenants
 in common

 	
  

 	
 UNIF GIFT
 MIN ACT –

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (Cust)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 TEN ENT

 	
 – as tenants
 by the entireties

 	
  

 	
 Custodian
 for:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (Minor)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 JT TEN

 	
 – as joint
 tenants with rights of survivorship and not as tenants in common

 	
  

 	
 under
 Uniform Gifts to Minors Act of:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
 (State)

 

          Additional
abbreviations may also be used though not on the above list.

A-9

ASSIGNMENT

          FOR
VALUE RECEIVED, the undersigned assigns and transfers this 2021 Note to:

	
  

 
	

 

 
	
  

 
	

 

 
	
  

 
	

 

 
	
 (Insert assignee’s social security or tax identification number)

 
	
  

 
	

 

 
	
  

 
	

 

 
	
  

 
	

 

 
	
 (Insert address and zip code of assignee)

 

and
irrevocably appoint _______________ agent to transfer this 2021 Note on the
Security Register. The agent may substitute another to act for him or her.

Dated:

Signed:

Signature
Guarantee:

(Sign exactly
as your name appears on the other side of this 2021 Note)

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Registrar, which
requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program”
as may be determined by the Registrar in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

A-10

[TO BE ATTACHED TO GLOBAL NOTES]

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL
NOTE

          The
following increases or decreases in this Global Note have been made:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Amount of Decrease

 in Stated Amount of

 the Global Note

 	
  

 	
 Amount of Increase

 in Stated Amount of

 the Global Note

 	
  

 	
 Stated Amount of

 the Global Note

 Following Such

 Decrease/Increase

 	
  

 	
 Signature of

 Authorized

 Signatory of Trustee

 	
  

 	
 Date

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	

  

 	
  

 	

  

 	
  

 	

  

 	
  

 	

  

 	
  

 	

  

 

A-11Exhibit 4.4

 

 

	
 

 

 

 

 

COSAN S.A. INDÚSTRIA E COMÉRCIO

 

COSAN DISTRIBUIDORA DE COMBUSTÍVEIS LTDA.

 

COSAN LIMITED

 

HOUCHES HOLDINGS S.A.

 

SHELL BRASIL LIMITADA

 

SHELL BRAZIL HOLDING B.V.

 

SHELL OVERSEAS HOLDINGS LIMITED

 

RAIZEN ENERGIA S.A.

 

	
 

AMENDMENT AGREEMENT TO THE

 FRAMEWORK AGREEMENT

 

 

  

  

  

	
CONTENTS

	
Clause

	
Page

 

	
1.

	
INTERPRETATION AND DEFINITIONS

	
2

 

	
3.

	
CONDITIONS

	
3

 

	
2.

	AMENDMENTS TO THE FRAMEWORK AGREEMENT	
3

 

	
4.

	
GENERAL

	27

 

	
5.

	
COUNTERPARTS

	
28

 

	
6.

	
GOVERNING LAW AND LANGUAGE

	
28

 

	
7.

	
ARBITRATION

	
28

 

Schedule 1                      REMAINING COSAN RESTRUCTURING STEPS

Schedule 2                      REMAINING SHELL RESTRUCTURING STEPS

Schedule 3                      COSAN ASSETS

Schedule 4                      SHELL ASSETS

Schedule 5                      COSAN EXCLUDED ASSETS

Schedule 6                      SHELL EXCLUDED ASSETS

Schedule 7                      TRANSACTION DOCUMENTS

Schedule 8                      NEW CLAUSES 6.10 AND 6.11

Schedule 9                      RETAIL SUGAR

Schedule 10                    INTERIM COMMODITIES AND DERIVATIVES POLICIES

 

  

  

  

THIS AGREEMENT is dated 7th April 2011 between:

 

PARTIES

 

	
(1)

	
COSAN S.A. INDÚSTRIA E COMÉRCIO, a company organized and existing under the laws of Brazil, with its head office at Avenida Presidente Juscelino Kubitschek no 1327, 4o andar, sala 01, Bairro Vila Nova Conceição, enrolled with the Brazilian tax registry under No. 50.746.577/0001-15 (“Cosan”);

	 	 
	
(2)

	
COSAN DISTRIBUIDORA DE COMBUSTÍVEIS LTDA., a company organized and existing under the laws of Brazil, with its head office at Fazenda Pau D’Alho, s/no, Prédio Administrativo Cosan, in the City of Barra Bonita, State of São Paulo, CEP 17340-000, enrolled with the Brazilian tax registry under No. 02.041.195/0001-43 (“Cosan Downstream Holdco”);

	 	 
	
(3)

	
COSAN LIMITED, a company incorporated under the laws of Bermuda and whose registered office is at Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda (“Cosan Limited”);

	 	 
	
(4)

	
HOUCHES HOLDINGS S.A., a company organized and existing under the laws of Brazil, with its head office at Rua Funchal, 418, Andar 11 Sala 09G, in the City of São Paulo, State of São Paulo, CEP 04.551-060, enrolled with the Brazilian tax registry under No. 10.773.432/0001-99 (the “Management Co”);

	 	 
	
(5)

	
SHELL BRAZIL HOLDING B.V., a company incorporated under the laws of the Netherlands with registered number 27192050 0000 and whose registered office is at Carel van Bylandtlaan 30, 2596HR ‘s-Gravenhage, The Netherlands (“Shell”);

	 	 
	
(6)

	
SHELL BRASIL LIMITADA, a company organized and existing under the laws of Brazil, with its head office at Avenida das Américas, 4.200, blocos 5 e 6, Barra da Tijuca in the City of Rio de Janeiro, State of Rio de Janeiro, CEP 22640-102, enrolled with the Brazilian tax registry under No. 33.453.598/0001-23 (“Shell Brasil Limitada” or the “Downstream Co”);

	 	 
	
(7)

	
SHELL OVERSEAS HOLDINGS LIMITED, a company incorporated under the laws of England with registered number 00596107 and whose registered office is at Shell Centre, London, SE1 7NA (“Shell UK Co”); and

	 	 
	
(8)

	
RAIZEN ENERGIA S.A. (formerly known as MILIMÉTRICA PARTICIPAÇÕES S.A.), a company organized and existing under the laws of Brazil, with its head office at Fazenda Pau D’Alho, s/no, Prédio Administrativo Cosan, Sala 07, in the City of Barra Bonita, State of São Paulo, CEP 17340-000, enrolled with the Brazilian tax registry under No. 12.182.297/0001-32 (the “Sugar and Ethanol Co”),

	 	 

each hereafter referred to as a “Party” and together as the “Parties”.

 

  

1

  

RECITALS

 

	
(A)

	
Pursuant to the Framework Agreement (as defined below), the Parties have agreed to establish the Joint Venture to combine certain of the assets of Cosan and Shell, primarily in Brazil.

	 	 
	
(B)

	
In accordance with the Framework Agreement, the Parties are working together towards the transfer of the Transfer Assets to the JV Entities and the establishment of the Joint Venture in accordance with the terms of the Transaction Documents.

	 	 
	
(C)

	
As at the date of this Agreement certain conditions to Closing have not yet been satisfied, as further detailed in this Agreement. However, the Parties intend that, at or after Closing, Cosan and Shell will share the Economic Benefits and Burdens of the Cosan Transfer Assets and the Shell Transfer Assets for the Business Risk Sharing Period as if Closing had occurred on 1 April 2011 as further detailed in this Agreement.

	 	 
	
(D)

	
No Transfer Assets will be contributed to the Joint Venture before the Closing Date and the provisions of the Framework Agreement relating to the contribution of the Transfer Assets (including Clause 2 and Schedule 7 of the Framework Agreement) shall remain.

	 	 
	
(E)

	
Each of Cosan and Shell shall continue to manage and operate its respective business independently in accordance with the terms of the Framework Agreement and all applicable laws and regulations, and nothing in this Agreement shall affect the ability of either Cosan or Shell to exercise Control over its respective business.

	 	 
	
(F)

	
The Parties have agreed to amend the Framework Agreement to reflect this intention and certain other matters as further set out in this Agreement.

	
THE PARTIES AGREE AS FOLLOWS:

	 
	
1.

	
INTERPRETATION AND DEFINITIONS

	 	 
	
1.1

	
Definitions

	 	 
	  	
1.1.1

	
In this Agreement “Framework Agreement” means the framework agreement dated 25 August 2010 made between the Parties.

	 	 	 
	  	
1.1.2

	
Unless a contrary indication appears, capitalized terms used in this Agreement shall have the same meanings given to them in the Framework Agreement.

	 	 	 
	
1.2

	
Construction

	 	 
	  	
Clause 1.2 (Construction) of the Framework Agreement shall apply to this Agreement as if it were set out herein, but as if references in that clause to the Framework Agreement were references to this Agreement.

 

  

2

  

 

	
2.

	
CONDITIONS

	 	 
	
2.1

	
Fully Satisfied Conditions

	 	 
	  	
The Parties confirm that the conditions set out in Clauses 5.1.1(a), 5.1.1(b), 5.1.1(c), 5.1.2(d), 5.1.3(b) and 5.1.3(g) of the Framework Agreement have been satisfied, and each Party hereby irrevocably waives any right to assert the failure of any such condition as a basis for such Party’s right not to effect the Closing.

	 	 
	
2.2

	
Waived Conditions

	 	 
	  	
The Cosan Parties irrevocably waive the conditions set out in Clauses 5.1.2(a) and 5.1.2(b)(i) of the Framework Agreement and the Shell Parties irrevocably waive the condition set out in Clauses 5.1.3(a), 5.1.3(c)(i), 5.1.3(e), 5.1.3(f)(ii) and 5.1.3(i) (subject to the Pasadena Waiver (as defined below)) of the Framework Agreement, and each Party hereby irrevocably waives any right to assert the failure of any such condition as a basis for such Party’s right not to effect the Closing.

	 	 
	
2.3

	
Outstanding Conditions

	 	 
	  	
The Parties agree as follows:

	 	 	 
	  	
2.3.1

	
the obligations of the Cosan Parties and the Shell Parties to effect the Closing remain conditional upon the satisfaction or waiver by the Cosan Parties and the Shell Parties of the condition set out in Clause 5.1.1(d) of the Framework Agreement (as amended by Clause 3.6.1 of this Agreement);

	 	 	 
	  	
2.3.2

	
the obligations of the Cosan Parties to effect the Closing remain conditional upon the satisfaction or waiver by the Cosan Parties of the conditions set out in Clauses 5.1.2(b)(ii) and 5.1.2(c) of the Framework Agreement; and

	 	 	 
	  	
2.3.3

	
the obligations of the Shell Parties to effect the Closing remain conditional upon the satisfaction or waiver by the Shell Parties of the conditions set out in Clauses 5.1.3(c)(ii) (as amended by Clause 3.6.2 of this Agreement), 5.1.3(d), 5.1.3(f)(i) and 5.1.3(h) of the Framework Agreement.

	 	 	 
	
2.4

	
Restructuring

	 	 
	  	
The Parties acknowledge and confirm that the Cosan Restructuring is in progress and that all steps of the Cosan Restructuring have been implemented other than those set out in Schedule 1 to this Agreement which remain outstanding and that the Shell Restructuring is in progress and that all steps of the Shell Restructuring have been imiplemented other than those set out in Schedule 2 to this Agreement which remain outstanding.

	 	 
	 	 
	
3.

	
AMENDMENTS TO THE FRAMEWORK AGREEMENT

	 	 
	
3.1

	
Global Changes

	 	 
	
3.1.1

	
Each reference to “Closing Date Exchange Rate” in the Framework Agreement is amended to read “Business Risk Sharing Date Exchange Rate”.

 

  

3

  

 

	
3.1.2

	
Each reference to “Sugar Retail” in the Framework Agreement is amended to read “Retail Sugar”.

	 	 
	
3.2

	
Definitions

	 	 
	  	
3.2.1

	
All references to “Closing” and “Closing Date” in the following definitions in Clause 1.1 of the Framework Agreement are amended to read “Business Risk Sharing” and “Business Risk Sharing Date”, respectively:

	 	 	 
	  	  	
“Accounts Payable”;

	 	 	 
	  	  	
“Accounts Receivable”;

	 	 	 
	  	  	
“Cosan Excess Debt”;

	 	 	 
	  	  	
“Debt”;

	 	 	 
	  	  	
“Pre-Closing Liabilities”; and

	 	 	 
	  	  	
“Rebranding Payment”.

	 	 	 
	  	
3.2.2

	
The definition of Agreed Form in Clause 1.1 of the Framework Agreement is amended by the deletion of the words “on or before the date of this Agreement”.

	 	 	 
	  	
3.2.3

	
The definition of Brazilian GAAP in Clause 1.1 of the Framework Agreement is amended by the insertion of the words “as at the date of the preparation of the relevant accounts” after the word “Brazil”.

	 	 	 
	  	
3.2.4

	
The definition of Closing Date Exchange Rate in Clause 1.1 of the Framework Agreement is deleted.

	 	 	 
	  	
3.2.5

	
The definition of Cosan Downstream IP in Clause 1.1 of the Framework Agreement is amended by the insertion of the parenthetical “(both formal and informal)” after “Intellectual Property”.

	 	 	 
	  	
3.2.6

	
The definition of Financial Risk Management Principles in Clause 1.1 of the Framework Agreement is deleted.

	 	 	 
	  	
3.2.7

	
The definition of HSSE and SD Transition Plan in Clause 1.1 of the Framework Agreement is amended by the deletion of the words “, to be adopted by each JV Entity at Closing”.

	 	 	 
	  	
3.2.8

	
The definition of Indemnifiable Matter in Clause 1.1 of the Framework Agreement is deleted and replaced by the insertion of a new definition as follows:

	 	 	 
	  	  	
““Indemnifiable Matter” means:

	 	 	 
	  	  	
(a)

	
any failure of any Warranty made by an Indemnifying Party in whole or in part to be true, accurate and not misleading on, and as of, the Business Risk Sharing Date; provided that each such Warranty shall, for this purpose, be read without any qualification therein relating to Material Adverse Change, materiality or immateriality or any similar qualification or standard;

 

  

4

  

 

	  	  	
(b)

	
any failure of any Closing Warranty made by an Indemnifying Party in whole or in part to be true, accurate and not misleading on and as of the Closing Date; provided that each such Closing Warranty shall, for this purpose, be read without any qualification therein relating to Material Adverse Change, materiality or immateriality or any similar qualification or standard;

	 	 	 	 
	  	  	
(c)

	
any Covenant made by an Indemnifying Party which such Indemnifying Party has failed to fulfil in whole or in part in all material respects;

	 	 	 	 
	  	  	
(d)

	
any Notified Matter;

	 	 	 	 
	  	  	
(e)

	
all Cosan Pre-Closing Liabilities (where Cosan is the Indemnifying Party) or all Shell Pre-Closing Liabilities (where Shell is the Indemnifying Party); and/or

	 	 	 	 
	  	  	
(f)

	
in the case of Cosan being the Indemnifying Party, all Cosan Excluded Liabilities or, in the case of Shell being the Indemnifying Party, all Shell Excluded Liabilities,

	 	 	 
	  	  	
but excluding the Non-Contingent Liabilities except to the extent not paid in full when due by Cosan or Shell (as applicable);”

	 	 	 
	  	
3.2.9

	
The definition of Longstop Date in Clause 1.1 of the Framework Agreement is deleted and replaced by the insertion of a new definition as follows:

	 	 	 
	  	  	
““Longstop Date” means the date which is 365 days or, at the election of either Cosan or Shell (by prior notice in writing to the Parties), 545 days, after the date of this Agreement, or, as otherwise agreed in writing between the Parties;”

	 	 	 
	  	
3.2.10

	
The definition of Restricted Cash in Clause 1.1 of the Framework Agreement is amended by the insertion of the words “ but excluding any Margin Call Reserved Cash” immediately after the word “Cash”.

	 	 	 
	  	
3.2.11

	
The definition of Retail and Aviation Lubricants Agency Prepayment in Clause 1.1 of the Framework Agreement is amended by replacing the words “equal to US$248,000,000” with the words “in the BRL equivalent of US$248,000,000 calculated on the Business Risk Sharing Date”.

	 	 	 
	  	
3.2.12

	
The definition of Shell IT Agreement in Clause 1.1 of the Framework Agreement is deleted.

	 	 	 
	  	
3.2.13

	
The definition of Third Party Claims in Clause 1.1 of the Framework Agreement is amended by the insertion of the words “or against” after the word “by”.

 

  

5

  

 

	 	 	3.2.14	
The definition of Trading Risk Management Principles in Clause 1.1 of the Framework Agreement is amended by the insertion of the words “, in Agreed Form,” immediately after the words “trading risk management principles”.

	 	 	 	 
	 	 	3.2.15	
Clause 1.1 of the Framework Agreement is amended by the insertion of the following definitions, in alphabetical order among the definitions otherwise contained in the Framework Agreement:

	 	 	 	 
	 	 	 	
“Accounting Calculation Date” means close of business on 31st March 2011;

	 	 	 	 
	 	 	 	
“Assignment and Assumption Agreement of Sugar Cane Supply Contracts” means the assignment agreement in the Agreed Form relating to any sugar-cane supply contracts related to the Cosan S&E Business of more than 365 days in original duration;

	 	 	 	 
	 	 	 	
“Business Risk Sharing” means the transfer of the Economic Benefits and Burdens subject to and in accordance with Clause 1A of this Agreement;

	 	 	 	 
	 	 	 	
“Business Risk Sharing Date” means 1st April 2011;

	 	 	 	 
	 	 	 	
“Business Risk Sharing Date Exchange Rate” means the BRL-US$ exchange rate as at the Business Risk Sharing Date determined in accordance with Clause 17 (Currency Conversion);

	 	 	 	 
	 	 	 	
“Business Risk Sharing Period” means the period from the Business Risk Sharing Date to the Closing Date (inclusive);

	 	 	 	 
	 	 	 	
“CDI Rate” means, with respect to the adjustment of any amount on any applicable date of determination, the percentage that corresponds to the accumulated variation of the Brazilian interbank rate for 1-day certificate of deposits (CDI) as calculated and disclosed by CETIP (Balcão Organizado de Ativos e Derivativos) during any given period as specified herein; it being understood that such calculation shall be that disclosed by CETIP at its url location (currently http://www.cetip.com.br/) or such other successor page or service as determined in good faith by Cosan and Shell for the purpose of performing accumulated calculations of CDI rates for such periods;

	 	 	 	 
	 	 	 	
“Closing Warranties” means the Cosan Closing Warranties and the Shell Closing Warranties and “Closing Warranty” shall be construed accordingly;

	 	 	 	 
	 	 	 	
“Cosan Closing Warranties” means the warranties set out in paragraphs 1, 3, 4.6, 7.1, 7.2, 8.4, 9.1.2, 9.2, 10.1, 10.2, 10.3, 11.2, 15 and 20 of Schedule 9;

	 	 	 	 
	 	 	 	
“Derivatives Policies” means the Interim Commodities and Derivatives Policies and the Treasury Policies;

	 	 	 	 
	 	 	 	
“Economic Benefits and Burdens” means the economic benefits of ownership, including all revenues, profits, income and appreciation, dividends and distributions, proceeds of any disposition, sale, liquidation or insurance claims and the associated burdens of ownership, including liabilities, losses, costs, Taxes and other charges other than any such liabilities, losses, costs, Taxes or other charges caused by a breach of this Agreement;

 

  

6

  

 

	  	  	
“Interim Commodities and Derivatives Policies” means certain interim commodity trading policies and principles approved by Cosan and Shell, as set out in Schedule 20 (Interim Commodities and Derivatives Policies);

	 	 	 
	  	  	
“JV Capex Plan” means the quarterly capital expenditure plan included within the JV Operating Plan;

	 	 	 
	  	  	
“JV Operating Plan” means the business operating plan agreed by Cosan and Shell on or before the Business Risk Sharing Date and in Agreed Form;

	 	 	 
	  	  	
“Pasadena Waiver” means the side letter entered into on or about the Business Risk Transfer Date between Cosan and Shell relating to certain retail fuel stations owned and operated as at the Business Risk Transfer Date by Cosan (or one or more of its Affiliates);

	 	 	 
	  	  	
“Real Estate Assignment Agreement” means the assignment agreement relating to rural lease agreements executed between Cosan S.A. Indústria e Comércio and Cosan S.A. Açúcar e Álcool on 1 February 2011;

	 	 	 
	  	  	
“Shell Closing Warranties” means the warranties set out in paragraphs 1, 3, 4.6, 7.1, 7.2, 8.4, 9.1.2, 9.2, 10.1, 10.2, 10.3, 11.2, 15 and 20 of Schedule 10; and

	 	 	 
	  	  	
“Treasury Policies” means certain treasury policies, in Agreed Form, to be adopted by the Supervisory Boards at Closing.

	 	 	 
	
3.3

	
Business Risk Sharing

	 	 
	  	
A new clause 1A is inserted immediately after Clause 1 of the Framework Agreement as follows:

	 	 
	  	
“1A BUSINESS RISK TRANSFER DATE

	 	 
	  	
1A.1 Business Risk Sharing

	 	 
	  	
1A.1.1

	
The Parties agree that while the steps set out in Schedule 7 do not occur before the Closing Date and none of the Cosan Transfer Assets, the Cosan Transfer Entities, the Cosan S&E Liabilities, the Cosan Downstream Liabilities or the Shell Transfer Assets, will be transferred to the Joint Venture on the Business Risk Sharing Date, Cosan and Shell will each implement accounting mechanisms separate from its other businesses to enable the Economic Benefits and Burdens of the Cosan Transfer Assets, the Cosan Transfer Entities, the Cosan S&E Liabilities and the Cosan Downstream Liabilities or the Shell Transfer Assets, the Shell Transfer Entities and the Shell Downstream Liabilities (as applicable) to be ascertainable.

	 	 	 
	  	
1A.1.2

	
At or after Closing, the Economic Benefits and Burdens of the Cosan Transfer Assets, the Cosan Transfer Entities, the Cosan S&E Liabilities, the Cosan Downstream Liabilities, the Shell Transfer Assets, the Shell Transfer Entities and the Shell Downstream Liabilities for the Business Risk Sharing Period shall be allocated to the JV Entities in accordance with the provisions of this Agreement as if Closing had occurred on the Business Risk Sharing Date.

 

  

7

  

 

	  	
1A.1.3

	
If Closing does not occur by the Longstop Date or this Agreement is otherwise terminated in accordance with its terms, the Parties agree that Clause 1A.1.1 and Clause 1A.1.2 shall cease to have any effect and the Economic Benefits and Burdens of the Cosan Transfer Assets, the Cosan Transfer Entities, the Cosan S&E Liabilities, the Cosan Downstream Liabilities, the Shell Transfer Assets, the Shell Transfer Entities and the Shell Downstream Liabilities shall not be allocated to the Joint Venture.

	 	 	 
	  	
1A.2

	
Operations

	 	 	 
	  	
During the Business Risk Sharing Period, Shell will continue to manage the Shell Transfer Assets and Cosan will continue to manage the Cosan Transfer Assets, the Cosan Transfer Entities, the Cosan S&E Liabilities, the Cosan Downstream Liabilities in each case in accordance with and subject to the covenants set out in Clause 7.6 and Clause 7.7, and all applicable Law.”

	 	 
	
3.4

	
Clause 2

	 	 
	  	
3.4.1

	
Clause 2.4(a)(i) of the Framework Agreement is amended as follows:

	 	 	 	 
	  	  	
(a)

	
“plus interest accrued on such amount during the Business Risk Sharing Period at the CDI Rate” is inserted immediately after “US$191,866,000” in sub-clause (A); and

	 	 	 	 
	  	  	
(b)

	
all references to “Closing Date” in sub-clauses (B), (C) and (D) are amended to read “Business Risk Sharing Date”.

	 	 	 
	  	
3.4.2

	
Clause 2.4(b) of the Framework Agreement is deleted and replaced with the following new Clause 2.4(b):

	 	 	 
	  	  	
“(b) to the Downstream Co on the Closing Date, (i) the Rebranding Payment plus interest accrued on the Rebranding Payment during the Business Risk Sharing Period at the CDI Rate and (ii) the Retail and Aviation Lubricants Agency Prepayment (which, for the avoidance of doubt, shall not qualify as a contribution to the Downstream Co, but rather a payment that is required under the Retail Lubricants Agency Agreement and the Lubricants Agency Agreement) plus interest accrued on the Retail and Aviation Lubricants Agency Prepayment during the Business Risk Sharing Period at the CDI Rate,”

	 	 
	
3.5

	
Clause 4

	 	 
	  	
Clause 4 of the Framework Agreement is deleted and replaced by the insertion of a new Clause 4 as follows:

	 	 	 
	  	
“4.

	
RETAIL SUGAR BUSINESS

	 	 	 
	  	
The Parties agree that the Retail Sugar Business shall be treated as follows:

	 	 
	  	
4.1 The Sugar and Ethanol Co and its Subsidiaries shall transfer to Cosan and its Affiliates, at any time up to 90 days after the Business Risk Transfer Date  (at the election of Cosan by written notice to the Sugar and Ethanol Co and Shell) (that date of such transfer, the “Carve-Out Date”), the assets set out in Schedule 18 and all the rights and obligations derived therefrom and any other assets not set out in Schedule 18 (collectively, the “Retail Sugar Assets”), all on an as-is basis, that are exclusively related to or exclusively used in the Retail Sugar Business; provided that, if on or before the 30th day following the date of this Agreement, Cosan, Shell and the Sugar and Ethanol Co agree that the transfer of the Retail Sugar Assets will not occur on or prior to the date falling 90 days following the date of this Agreement, the Carve-Out Date shall be amended to a later date as agreed to by such parties at such time.

	 	 

 

  

8

  

 

	 	
4.2           In consideration of the transfer of the assets set out in Schedule 18 (Retail Sugar Assets) on the Carve-Out Date, Cosan shall pay to the Sugar and Ethanol Co (i) a first instalment of US$55,000,000 (as adjusted in accordance with Clause 4.1.3 of this Agreement), on the Carve-Out Date and (ii) a second installment of BRL20,000,000 which shall be paid out over the two-year period following the Carve-Out Date as described in the third sentence of this Clause 4.2 below (collectively, and as adjusted in accordance with the terms hereof, the “Retail Sugar Price”), so that, with the proceeds of clause (ii), the Sugar and Ethanol Co can (A) make improvements at the Da Barra Mill located at Fazenda Pau D’Alho, Zona Rural, Barra Bonita, SP CEP 17340-000 and the Tarumã Mill located at Tarumã Fazenda Nova America, Agua da Alldeia, Tarumã, SP CEP 19820-000 to prioritize action and expenditures to ensure compliance with the HSSE and SD Standards and (B) construct a new warehouse at each such Mill. The Sugar and Ethanol Co shall use reasonable endeavors to meet the timetable requested by Cosan to make the improvements at such Mills.  Over the two-year period following the Carve-Out Date, as the Sugar and Ethanol Co incurs expenses with respect to the improvements and the construction projects, Cosan shall pay an amount to the Sugar and Ethanol Co equal to the amount of such expenses actually incurred by Sugar and Ethanol Co; provided that Cosan shall not be responsible for paying for any such expenses (i) incurred after the second anniversary of the Carve-Out Date and (ii) once it has paid the second installment of BRL20,000,000 of the Retail Sugar Price in full to the Sugar and Ethanol Co.  On a monthly basis, the Sugar and Ethanol Co shall send a report to Cosan in respect of any such expenses so incurred which shall be reimbursed upon receipt.

	 	 
	 	
4.3           The Retail Sugar Price shall be adjusted (upwards or downwards) to account for any deviations, as of the Carve-Out Date, in Actual Inventory of the Retail Sugar Business and Actual Net Receivables of the Retail Sugar Business (in each case as defined in Schedule 18 (Retail Sugar Assets)) (calculated in BRL) from the Target Inventory of the Retail Sugar Business and the Target Net Receivables of the Retail Sugar Business (in each case as defined in Schedule 18 (Retail Sugar Assets)) that are set out in Schedule 18 (Retail Sugar Assets).  If there is any shortfall in the amount of Actual Inventory of the Retail Sugar Business or Actual Net Receivables of the Retail Sugar Business on the Carve-Out Date relative to the respective target amounts set out in Schedule 18 (Retail Sugar Assets) (such shortfall to be calculated on a net aggregated basis for all such calculations), then the Retail Sugar Price shall be adjusted downwards.  If there is an excess of Actual Inventory of the Retail Sugar Business or Actual Net Receivables of the Retail Sugar Business on the Carve-Out Date relative to the respective target amounts set out in Schedule 18 (Retail Sugar Assets) to this Agreement (such excess to be calculated on a net aggregated basis for all such calculations), then the Retail Sugar Price shall be adjusted upwards.

 

  

9

  

 

	  	
4.4           If the Carve-Out Date occurs on or after the Closing, Cosan and the Sugar and Ethanol Co shall endeavour to reach agreement on the amount of each of the Actual Inventory of the Retail Sugar Business and the Actual Net Receivables of the Retail Sugar Business, as of the Carve-Out Date, as promptly as practicable thereafter and in any event within 45 days of the Carve-Out Date, and, for this purpose, shall grant each other reasonable access during normal business hours to their respective books, records and employees relating thereto.  If Cosan and the Sugar and Ethanol Co cannot reach agreement on the amount(s) of the Actual Inventory of the Retail Sugar Business and/or the Actual Net Receivables of the Retail Sugar Business, as of the Carve-Out Date, within 45 days of the Carve-Out Date, then the matter shall be referred to the Independent Auditor for resolution, the costs of whose review shall be split equally between Cosan and the Sugar and Ethanol Co (and whose determination will be final and binding on the Parties).

	 	 
	  	
4.5           If the Carve-Out Date occurs prior to the Closing Date, Cosan and a member of the Transition Team shall endeavour to reach agreement on the amount of each of the Actual Inventory of the Retail Sugar Business and the Actual Net Receivables of the Retail Sugar Business, as of the Carve-Out Date, as promptly as practicable thereafter and in any event within 45 days of the Carve-Out Date, and, for this purpose, Cosan shall grant such designated member of the Transition Team reasonable access during normal business hours to Cosan’s and the Sugar and Ethanol Co’s respective books, records and employees relating thereto.  If Cosan and the designated member of the Transition Team cannot reach agreement on the amount(s) of the Actual Inventory of the Retail Sugar Business and/or Actual Net Receivables of the Retail Sugar Business, as of the Carve-Out Date, within 45 days of the Carve-Out Date, then the matter shall be referred to the Independent Auditor for resolution, the costs of whose review shall be split equally between Cosan and the Sugar and Ethanol Co (and whose determination will be final and binding on the Parties).

	 	 
	  	
4. 6           The settlement of the adjustment to the Retail Sugar Price shall be on a net basis and shall be effected by a payment by either Cosan (if there is a excess of Actual Inventory of the Retail Sugar Business and the Actual Net Receivables of the Retail Sugar Business on a net aggregated basis over the targeted figures for such amount) or the Sugar and Ethanol Co (if there is a shortfall of Actual Inventory of the Retail Sugar Business and Actual Net Receivables of the Retail Sugar Business on a net aggregated basis below the targeted figures for such amount) to the other as promptly as possible after (but in any event within 2 Business Days after) the amount of the Actual Inventory of the Retail Sugar Business and Actual Net Receivables of the Retail Sugar Business as of the Carve-Out Date has been agreed in writing by the Parties or finally determined by the Independent Auditor.

	 	 
	  	
4. 7           Between the Business Risk Sharing Date and the Carve-Out Date, the Economic Benefits and Detriments of the Retail Sugar Business shall be borne by Cosan with any income paid to or retained by Cosan, any losses reimbursed by Cosan to the Sugar and Ethanol Co to the extent paid or borne by Sugar and Ethanol Co and any funding requirements of the Retail Sugar Business provided by Cosan.

	 	 
	  	
4. 8           Notwithstanding any other provision of this Agreement, Cosan shall hold the Sugar and Ethanol Co harmless from any and all Losses incurred or suffered by any JV Entity with respect of any act, fact, event, omission or other liability incurred on or before the Business Risk Sharing Date arising out of the Retail Sugar Business.

 

  

10

  

 

	  	
4.9           Cosan shall be responsible for all compensation and benefits-related costs for the employees of the Retail Sugar Business set out in Schedule 19 (Retail Sugar Employees) (the “SRB Employees”) from and after the Business Risk Sharing Date until the Carve-Out Date.  On the Carve-Out Date, the SRB Employees shall be transferred by the Sugar and Ethanol Co to Cosan (or an affiliate of Cosan that is designated by Cosan) in the manner contemplated by Clause 3.1 of this Agreement.

	 	 
	  	
4. 10           If Sugar and Ethanol Co owns the Retail Sugar Business after the Closing Date, but before the Carve-Out Date, then the Retail Sugar Business and the SRB Employees shall be directly managed by Colin Butterfield or his successor as designated by Cosan , in each case up and until the Carve-Out Date.

	 	 
	  	
4.11           From and after the Carve-Out Date, the equipment inside the Sugar packaging rooms located at the Da Barra and the Tarumã Mills shall be leased by Cosan to the Sugar and Ethanol Co on a cost-free basis (comodato) for a term of 20 years, which shall be automatically extend for an additional 20 years if the Parties do not otherwise agree (such lease, the “Lease”).  The Sugar and Ethanol Co shall be responsible for maintaining and operating such equipment in accordance with the Tolling Agreement between Cosan and the Sugar and Ethanol to be entered into by the parties thereto.  At the end of the term of the Lease, Cosan shall have the right to remove such equipment from the Sugar packaging rooms at its cost and shall be responsible for any damages to such Sugar packaging rooms.

	 	 
	  	
4.12           Cosan has the right, in its sole discretion, to expand its current production of Sugar at the Piedade Sugar refinery located at Rua Assis Carneiro, 80, Piedade, RJ, RJ 20740-260.  If, however, Cosan decides to cease production and operations at the Piedade Sugar refinery, it shall bear all costs and expenses associated with such cessation of production and operations.

	 	 
	  	
4.13            Following the Carve-Out Date, the Sugar and Ethanol Co shall have the right to engage in White Label Marketing; provided that Sugar and Ethanol Co shall have no right to use the assets of the Retail Sugar Business in connection with White Label Marketing.  Cosan hereby waive any rights it may have against Sugar and Ethanol Co in connection with its engagement in White Label Marketing.

	 	 
	  	
4.14           If the Carve-Out Date occurs after the Closing Date, Cosan hereby irrevocably waives any rights it may have against the Sugar and Ethanol Co for the use of the Retail Sugar Brands exclusively during the period from the Closing to the Carve-Out Date, on the terms herein agreed.

	 	 
	  	
4.15           For the avoidance of doubt, the Contrato de Prestação de Serviços de Refino de Açúcar e Outras Avenças, between Açúcar Guarani S.A. and Cosan dated 13 December 2007, and the subsequent amendments thereto, shall be adhered to by Cosan in its entirety.

	 	 
	  	
4.16           On the Carve-Out Date, the Framework Agreement shall be automatically amended, without further action or documentation and without the consent of any of the Parties, such that:

 

  

11

  

 

	  	
(a)

	
paragraph (a) of the definition of the “Business” set out in Clause 1.1 (Definitions) shall read: “the production, sale and trading of Sugar globally other than the Retail Sugar Business;”;

	 	 	 
	  	
(b)

	
a new subparagraph (vii) of the definition of “Cosan Excluded Assets” set out in Clause 1.1 (Definitions) shall be inserted, between the existing subparagraphs (vi) and (vii), which shall read: “all assets owned, held or used primarily in relation to the conduct of the Retail Sugar Business;” and the subsequent subparagraphs shall be renumbered accordingly;

	 	 	 
	  	
(c)

	
subparagraph  (vii) of the definition of “Cosan S&E Assets” set out in Clause 1.1 (Definitions) shall be deleted in its entirety and the subsequent subparagraphs shall be renumbered accordingly; and

	 	 	 
	  	
(d)

	
paragraph (a) of Clause 2.3.1 shall read: “to the Sugar and Ethanol Co: (i) the Cosan S&E Assets; (ii) the Cosan S&E Liabilities; and (iii) cash in an amount equal to the Agreed Retail Sugar Value, paid on the Closing Date in full (and accruing interest in respect of any day after which any such payment is due at the Default Interest Rate);”;  and

	 	 	 
	  	
(e)

	
Schedules 1 (Cosan Assets) and 2 (Cosan Excluded Assets) shall be deemed to be updated to reflect that the contents of Annex A are included in Schedule 1 and excluded from Schedule 2.

	 	 
	  	
4.17            On the Carve-Out Date, the Agreed Form of the Sugar and Ethanol Shareholders’ Agreement shall be automatically amended, without further action or documentation and without the consent of any of the Parties, such that:

	 	 
	  	
(a)

	
paragraph (a) of the definition of the “Business” set out in Section 8.01 therein shall read: “the production, sale and trading of Sugar globally other than the Retail Sugar Business”.

	 	 	 
	  	
(b)

	
paragraph (a)(i) of Section 8.02 is amended by the deletion of “and”  before sub-section (D) and the insertion of a new sub-section (E)  which shall read: “(E) Cosan (or any of its Affiliates) may construct, own, purchase, lease and operate its Sugar refineries only for the Retail Sugar Business and sell such refined Sugar; and””

	 	 	 
	
3.6

	
Clause 5

	 	 	 
	  	
3.6.1

	
Clause 5.1.1(d) of the Framework Agreement is deleted and replaced by the insertion of a new Clause 5.1.1(d) as follows:

	 	 	 
	  	  	
“(d)  No injunction or court order shall have been granted by a Governmental Authority of competent jurisdiction prohibiting any Party from proceeding with Closing, in whole or in substantial part, and such injunction or order remains in effect and has not been lifted, overturned or released.”

	 	 	 
	  	
3.6.2

	
Clause 5.1.3(c)(ii) of the Framework Agreement is amended by the insertion of “; provided that in no event shall any Reg 540 Listing with respect to Cosan or any of its Affiliates, or any matters arising from or connected with any such Reg 540 Listing, have had or be reasonably be expected to result in a Material Adverse Change with respect to any of the Cosan Parties or the Joint Venture” immediately after “or the Joint Venture”.

 

  

12

  

 

	  	
3.6.3

	
Clause 5.2.1 of the Framework Agreement is amended by deleting the word “and” at the end of sub-clause (c) thereof, by adding the word “and” at the end of sub-clause (d) and by adding the following new sub-clause (e):

	 	 	 
	  	  	
“(e) take such steps as are commercially reasonable (including the filing and prosecution of lawsuits to the extent commercially reasonable) to have removed any injunction or other order issued by any Governmental Authority of competent jurisdiction relating to any of the Transaction Documents or any of the transactions contemplated hereby or thereby,”

	 	 	 
	  	
3.6.4

	
Clause 5.3.3 of the Framework Agreement is amended by the deletion of the words “the Financial Risk Management Principles,”.

	 
	
3.7              Clause 6

	 
	  	
3.7.1

	
All references to “Closing Date” in the definitions of Cosan Downstream Variable Working Capital Adjustment, Cosan Downstream Working Capital Target, Shell Downstream Variable Working Capital Adjustment and Shell Downstream Working Capital Target in Clause 6.1 of the Framework Agreement are amended to read “Accounting Calculation Date”.

	 	 	 
	  	
3.7.2

	
Clause 6.1 of the Framework Agreement is amended by the insertion of the following definitions, in alphabetical order, among the definitions already contained in that Clause:

	 	 	 
	  	  	
“Allocated JV Derivatives” means all of the derivative positions and/or contracts set out in the Derivatives Schedule;

	 	 	 
	  	  	
“Cosan Commercial Debt” means the Cosan Debt to be contributed to the JV Entities at Closing pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing), other than BNDES, FINAME and FINEM debt of Cosan or its Affiliates and other than the Specified PESA Debt;

	 	 	 
	  	  	
“Derivatives Schedule” means a schedule, in a form agreed by the Parties and initialled for and on behalf of Cosan and Shell for identification purposes, setting out:

	 	 	 
	  	  	
(a)

	
the details of what the Parties agree to be all derivative positions and/or contracts, held by Cosan (or any of its Affiliates) (or to which any of the foregoing is a party) and which are related to the Cosan Transfer Assets, the Cosan S&E Business and/or the Cosan Downstream Business;

	 	 	 	 
	  	  	
(b)

	
the marked-to-market values thereof;

	 	 	 	 
	  	  	
(c)

	
the Realized Losses or Gains; and

	 	 	 	 
	  	  	
(d)

	
the Margin Call Reserved Cash;

 

  

13

  

 

	  	  	
“Effective Time” means 11.59 p.m. on the day immediately preceding the Business Risk Sharing Date;

	 	 	 
	  	  	
“JV Hedging Activities” has the meaning given to it in Clause 6.7.2;

	 	 	 
	  	  	
“Margin Call Reserved Cash” means the amount of any cash posted by Cosan (or any of its Affiliates) as credit support for its out-of-the-money Allocated JV Derivatives, to the extent required by a hedge counterparty under terms of any of the Allocated JV Derivatives which is not closed out or terminated by the Effective Time and is contributed to the Sugar and Ethanol Co pursuant to Clause 6.8.1A(a);

	 	 	 
	  	  	
“Prospective CFO” has the meaning given to it in Clause 6.7.2;

	 	 	 
	  	  	
“Prospective Finance Committee” means each of Marcelo Martins (or another person notified by Cosan to the other Parties) and Tim Morrison (or another person notified by Shell to the other Parties);

	 	 	 
	  	  	
“Realized Losses or Gains” means the amount of any actual cash losses or actual cash gains, realized by a Cosan Entity between the period from 12.01 a.m. on 15 March 2011 to the Effective Time, arising from the closing out or termination, during such period, of any of the Allocated JV Derivatives;

	 	 	 
	  	  	
“Specified Derivatives Debt” means a portion of the Cosan Entities’ Debt with equal or better terms than the average terms of the Cosan Commercial Debt, selected by Cosan in its sole discretion, not otherwise being contributed to a JV Entity at Closing pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing), with a net current value, as at the Business Risk Sharing Date, of BRL167,000,000;

	 	 	 
	  	  	
“Specified Margin Call Debt” means a portion of the Cosan Entities’ Debt with equal or better terms than the average terms of the Cosan Commercial Debt, selected by Cosan in its sole discretion, not otherwise being contributed to a JV Entity at Closing pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing), with a net current value, as at the Closing Date, equal, in BRL, to the amount of the Margin Call Reserved Cash;

	 	 	 
	  	  	
“Specified Realizations Cash” means an amount of cash, in BRL, not otherwise being contributed to a JV Entity at Closing pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing), equal to the amount of the Realized Losses or Gains;

	 	 	 
	  	
3.7.3

	
“Specified Realizations Debt” means an amount of the Cosan Entities’ Debt, with equal or better terms than the average terms of the Cosan Commercial Debt, selected by Cosan in its sole discretion, not otherwise being contributed to a JV Entity at Closing pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing), with a net current value, as at the Business Risk Sharing Date, equal, in BRL, to the amount of the Realized Losses or Gains; and

 

  

14

  

 

	  	  	
“Tripartite Committee” has the meaning given to it in Clause 6.7.2.

	 	 	 
	  	
3.7.4

	
Clause 6.5.6 of the Framework Agreement is deleted.

	 	 	 
	  	
3.7.5

	
Clause 6.5.7 of the Framework Agreement is deleted.

	 	 	 
	  	
3.7.6

	
Clause 6.6.1(b) of the Framework Agreement is deleted.

	 	 	 
	  	
3.7.7

	
Clause 6.6.2 of the Framework Agreement is deleted.

	 	 	 
	  	
3.7.8

	
Clause 6.7 of the Framework Agreement is renamed “Allocated JV Derivatives” and amended by the deletion of all provisions contained in Clauses 6.7.1 and 6.7.2 and the insertion in their place of the following paragraphs:

	 	 	 
	  	  	
6.7.1

	
Cosan represents and warrants to Shell that, as at the Effective Time, the marked-to-market values of the Allocated JV Derivatives, and the amounts of the Realized Losses or Gains and the Margin Call Reserved Cash, were each as specified in the Derivatives Schedule.  Cosan shall indemnify each JV Entity and shall save and hold it harmless against any Loss incurred or suffered by such JV Entity that arises out of or directly relates to any failure of the representation and warranty given  by Cosan in this Clause 6.7.1 to be true as at the Effective Time.

	 	 	 	 
	  	  	
6.7.2

	
The Parties acknowledge that Cosan and Shell have formed a committee (the “Tripartite Committee”) comprised of representatives of Cosan, Shell and the prospective management of the Joint Venture, chaired by the appointee to the prospective role of chief financial officer of the Joint Venture (the “Prospective CFO”) and have authorized and requested such committee to:

	 	 	 	 
	  	  	  	
(a)

	
oversee and advise on the JV Hedging Activities in respect of the Cosan S&E Business and the Cosan Downstream Business during the Business Risk Sharing Period (the “JV Hedging Activities”) on the basis that the foreign exchange and commodity price risk of the Cosan S&E Business and the Cosan Downstream Business should be hedged to an extent consistent with the Derivative Policies;

	 	 	 	 	 
	  	  	  	
(b)

	
meet on a weekly basis to provide specific guidance to Cosan on the JV Hedging Activities for the immediately following 7-day period; and

	 	 	 	 	 
	  	  	  	
(c)

	
notify the Prospective Finance Committee if it expects that the JV Hedging Activities are likely to result in any event of non-compliance with the Derivative Policies,

	 	 	 	 
	  	  	  	
and, for the avoidance of doubt, Cosan shall be permitted to consult with, and ask and receive advice from, the Tripartite Committee but shall not be obliged to follow any instructions given by the Tripartite Committee to it.

 

  

15

  

 

	  	  	
6.7.3

	
The Parties shall ensure that the Monitoring Team shall review the degree to which the JV Hedging Activities have been carried out in a manner consistent with the Derivative Policies and Shell shall instruct the Monitoring Team to notify Shell and Cosan in writing if it believes there has been any non-compliance with the Derivative Policies during the Business Risk Sharing Period.

	 	 	 	 
	  	  	
6.7.4

	
Cosan shall ensure that appropriate access to all of Cosan’s accounts, books, information and other material, together with reasonable rights of access to the trading team of Cosan (and its Affiliates) (including the right to ask questions related to the derivative activities conducted by Cosan (and its Affiliates)), in each case related to its derivative activities, is given to:

	 	 	 	 
	  	  	  	
(a)

	
each of the Tripartite Committee and the Monitoring Team so that it may assess and analyze the degree to which the JV Hedging Activities have been carried out in a manner consistent with the Derivative Policies; and

	 	 	 	 	 
	  	  	  	
(b)

	
the Tripartite Committee so that it may oversee and advise on the JV Hedging Activities.

	 	 	 	 	 
	  	  	
6.7.5

	
Subject to Clause 6.7.6, Cosan covenants to the Sugar and Ethanol Co that:

	 	 	 	 	 
	  	  	  	
(a)

	
it will instruct and cause its (and its Affiliates’) officers and employees to carry out the JV Hedging Activities in a manner consistent with the Derivative Policies and to enforce the compliance by its (and its Affiliates’) officers and employees with such instructions in an active manner;

	 	 	 	 	 
	  	  	  	
(b)

	
it will prosecute and request indemnification from any officer or employee who knowingly takes action in violation of the Derivative Policies, to the extent such non-compliance has caused any Loss to Cosan (or any of its Affiliates) and to the extent permitted by Brazilian Law,

	 	 	 	 
	  	  	  	
and Cosan acknowledges that such covenants are made for the benefit of the Sugar and Ethanol Co and, therefore, any and all indemnification amounts recovered, if any, shall be allocated to the benefit of the Sugar and Ethanol Co and, in addition, that the Sugar and Ethanol Co will be entitled to directly request any such indemnification if so decided by it in its sole discretion.

	 	 	 	 
	  	  	
6.7.6

	
If changes in market conditions render it commercially unreasonable for the officers and employees to follow the guidance of the Tripartite Committee or to comply with the Derivative Policies, in relation to the purchase or sale of any derivative instruments, Cosan (or any of its Affiliates) shall promptly report as such to the members of the Tripartite Committee and await further advice; provided that if Cosan (or any of its Affiliates) is unable to obtain advice or guidance from the Tripartite Committee in respect of any action that it believes should be taken, Cosan (or any of its Affiliates) shall not prosecute or request indemnification from any officer or employee who takes any commercially reasonable action which he or she determines, in good faith, to be in the interests of the Cosan S&E Business and/or the Cosan Downstream Business, in connection with the matter reported to the members of the Tripartite Committee pursuant to this Clause 6.7.6 and is within the applicable policy.

 

  

16

  

 

	  	
3.7.1

	
Clause 6.8 (Contributed Derivatives) of the Framework Agreement is amended by the deletion of all provisions contained in Clause 6.8.1 to 6.8.9 (inclusive) and the insertion in their place of the following paragraphs:

	 	 	 	 
	  	  	
6.8.1

	
Cosan shall procure that each of:

	 	 	 	 
	  	  	  	
(a)

	
the Allocated JV Derivatives; and

	 	 	 	 	 
	  	  	  	
(b)

	
in addition to the Cosan Debt to be contributed to the JV Entities pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clauses 6.6 (Actions after signing) and 6.9 (Actions after closing):

	 	 	 	 	 
	  	  	  	  	
(i)

	
the Specified Derivatives Debt;

	 	 	 	 	 	 
	  	  	  	  	
(ii)

	
the Specified Margin Call Debt; and

	 	 	 	 	 	 
	  	  	  	  	
(iii)

	
(A) where the Realized Losses or Gains are losses, the Specified Realizations Debt or (B) where the Realized Losses or Gains are gains, the Specified Realizations Cash,

	 	 	 	 
	  	  	  	
is contributed to the Sugar and Ethanol Co at Closing; provided that in the case of paragraph (b)(iii)(B) above, the Specified Realizations Cash may instead be applied by Cosan by reducing the Cosan Debt to be contributed to the JV Entities pursuant to Clause 2.3 (Cosan Transfer Assets and Liabilities) in accordance with Clause 6.6 (Actions after signing) and 6.9 (Actions after closing) in the amount of the Specified Realizations Cash.

	 	 	 	 
	  	  	
6.8.2

	
Cosan covenants to Shell that, to the extent it (or any of its Affiliates) has received any cash, marketable securities or credit line as credit support from a hedge counterparty, in connection with a contract that is an Allocated JV Derivative, that remains in place as of the Effective Time, any right to such credit support shall be transferred to the Sugar and Ethanol Co together with the Allocated JV Derivatives such that the Sugar and Ethanol Co receives the full benefit thereof.

 

  

17

  

 

	  	  	
6.8.3

	
Cosan represents to Shell, at the date of this Agreement, that Cosan did not receive any gain in connection with any hedges that were terminated or closed out on or after 14 March 2011 and replaced with other Allocated JV Derivatives covering the same exposure, other than any gain to be transferred to Sugar and Ethanol Co at Closing.

	 	 	 
	  	
3.7.2

	
Clause 6.9 of the Framework Agreement is amended as follows:

	 	 	 
	  	  	
(a)

	
all references therein to “Closing Date” are amended to read “Accounting Calculation Date”;

	 	 	 	 
	  	  	
(b)

	
all references therein, to “contributed” are amended to read “deemed to have been contributed”;

	 	 	 	 
	  	  	
(c)

	
all references therein, to “a balance sheet” (or any corresponding defined terms therein referring to a balance sheet) are amended to read “a pro forma balance sheet”; and

	 	 	 	 
	  	  	
(d)

	
all references therein, to a payment being made 5 Business Days after a determination are amended to refer to the later of the Closing Date and 5 Business Days after such determination.

	 	 	 	 
	  	
3.7.3

	
A new Clause 6.9.1A is inserted immediately after Clause 6.9.1 of the Framework Agreement as follows:

	 	 	 
	  	  	
“6.9.1A  For the purposes of Clause 6.9.1, if any change made to Brazilian GAAP between the Signing Date and the Business Risk Transfer Date will have an impact on any of the calculations made for the purposes of the Cosan Fixed Working Capital Adjustment, the Cosan Downstream Variable Working Capital Adjustment, the Cosan Net Debt Adjustment, the Shell Fixed Working Capital Adjustment, the Shell Downstream Variable Working Capital Adjustment or the Shell Net Debt Adjustment, any such calculation shall be amended accordingly so that it is calculated in a manner consistent with Brazilian GAAP as at the Signing Date and as applied in the preparation of the Cosan Carve Out Balance Sheet or the Shell Carve Out Balance Sheet, as applicable.”

	 	 	 
	  	
3.7.4

	
The Framework Agreement is amended by inserting new Clauses 6.10 and 6.11 as set out in Schedule 8 to this Agreement immediately after Clause 6.9 of the Framework Agreement.

	 	 
	
3.8

	
Clause 7

	 	 
	  	
3.8.1

	
Clause 7.2 of the Framework Agreement is deleted, renamed “Co-generation Products Contracts” and replaced by the insertion of:

	 	 	 
	  	  	
“The Parties acknowledge that the counterparty to any Co-generation Products contracts of Cosan and any direct or indirect Affiliate of Cosan shall be assigned to a Cosan Transfer Entity.”

 

  

18

  

 

	  	
3.8.2

	
A new Clause 7.6.2(d) is inserted immediately after Clause 7.6.2(c) of the Framework Agreement as follows:

	 	 	 
	  	  	
“(d) in respect of the Business Risk Sharing Period only, subject to market conditions, intervening external developments, and elements outside of its control, (i) incur capital expenditures in all material respects in accordance with the JV Capex Plan in respect of the Cosan Downstream Business and the Cosan S&E Business for Cosan or in respect of the Shell Downstream Business for Shell; provided that the purchase price for the Zanin mill located at Fazenda São Joaquim, City of Araraquara, São Paulo or any other acquisition shall not count towards the capital expenditure required by this Clause (d), and (ii) shall use all reasonable endeavours to operate each such business in accordance with the JV Business Plan, subject to Clauses 7.6 and 7.7 of this Agreement.”

	 	 	 
	  	
3.8.3

	
Clause 7.7.2(k) of the Framework Agreement is amended by replacing the phrase “other than in the ordinary course of business” with the phrase “other than as required by applicable Law”.

	 	 	 
	  	
3.8.4

	
All references in Clause 7.9.4 of the Framework Agreement to “Closing” and “Closing Date” are amended to read “Business Risk Sharing” and “Business Risk Sharing Date” respectively.

	 	 	 
	  	
3.8.5

	
A new Clause 7.9.8 is inserted immediately after Clause 7.9.7 of the Framework Agreement as follows:

	 	 	 
	  	  	
“The Parties agree that in the event of a conflict between the terms of a document effecting the Shell Restructuring and the provisions of this Clause 7.9, this Clause 7.9 shall prevail.”

	 	 	 
	  	
3.8.6

	
New Clauses 7.11 and 7.12 are inserted immediately after Clause 7.10 of the Framework Agreement as follows:

	 	 	 
	  	  	
“7.11 Funding pre-Closing

	 	 	 
	  	  	
7.11.1 If any funding is required to operate the Cosan Downstream Business and/or the Cosan S&E Business as Cosan is managing them in the Business Risk Sharing Period in accordance with the provisions of this Agreement and all applicable laws and regulations, Cosan shall:

	 	 	 	 
	  	  	
(a)

	
firstly, use such cash as is on hand that it may elect to use for this purpose; and

	 	 	 	 
	  	  	
(b)

	
secondly, if any additional funding is required and subject to Clauses 7.6 and 7.7, obtain, or if applicable provide, such funding on such terms as are, in Cosan’s reasonable judgment, in the best interests of the Joint Venture.

 

  

19

  

 

	  	  	
7.11.2 If any funding is required to operate the Shell Downstream Business as Shell is managing it in the Business Risk Sharing Period in accordance with the provisions of this Agreement and all applicable laws and regulations, Shell shall:

	 	 	 	 
	  	  	
(a)

	
firstly, use such cash as is on hand that it may elect to use for this purpose; and

	 	 	 	 
	  	  	
(b)

	
secondly, if any additional funding is required and subject to Clauses 7.6 and 7.7, obtain, or if applicable provide, such funding on such terms as are, in Shell’s reasonable judgment,  in the best interests of the Joint Venture.

	 	 	 
	  	  	
7.11.3  If:

	 	 	 
	  	  	
(a)

	
Cosan, at the request of the Cosan Downstream Business and/or the Cosan S&E Business, provides funding to the Cosan Downstream Business and/or the Cosan S&E Business at any time in the Business Risk Sharing Period; or

	 	 	 	 
	  	  	
(b)

	
Shell, at the request of the Shell Downstream Business, provides funding to the Shell Downstream Business at any time in the Business Risk Sharing Period,

	 	 	 	 
	  	  	
such funding shall be provided by way of a shareholder loan with a maturity date of 3 months after the Closing Date and accruing interest at (i) the CDI Rate or (ii) if higher, the interest rate payable on a third party credit line provided to, or borrowing made by, Cosan or Shell (as applicable) and directly linked to such shareholder loan.

	 	 	 
	  	  	
7.11.4  If the Cosan Downstream Business and/or the Cosan S&E Business is provided with funding by a third party at any time in the Business Risk Sharing Period, such debt shall be contributed by Cosan to the Joint Venture at Closing and, for the avoidance of doubt, shall not affect the Cosan Net Debt Adjustment.

	 	 	 
	  	  	
7.11.5  If the Shell Downstream Business is provided with funding by a third party at any time in the Business Risk Sharing Period, such debt shall be contributed by Shell to the Joint Venture at Closing and, for the avoidance of doubt, shall not affect the Shell Net Debt Adjustment.

	 	 	 
	  	  	
7.12 Policies

	 	 	 
	  	  	
Each of Cosan and Shell shall use its reasonable endeavours to implement the principles set out in the Derivatives Policies during the Business Risk Sharing Period.”

	 	 
	
3.9

	
Clause 8

	 	 
	  	
3.9.1

	
A new Clause 8.2A and a new Clause 8.2B are inserted immediately after Clause 8.2 of the Framework Agreement as follows:

	 	 	 
	  	  	
“8.2A  Capital Expenditure

	 	 	 
	  	  	
If Cosan fails to incur the expenditures required in the Cosan Expenditure Plan by 31st March 2011 in violation of Clause 6.4.1(e), to the extent the shortfall is agreed between Cosan and Shell (each acting reasonably), an amount equal to the agreed shortfall shall be deducted from the amount of cash to be paid by Shell at Closing to the Sugar and Ethanol Co pursuant to Clause 2.4(a)(i)(A).

 

  

20

  

 

	  	  	
8.2B Transtion Plan Obligations

	 	 	 
	  	  	
If Cosan fails to comply with any of its obligations (including but not limited to capital expenditure, operational expenditure and specific actions) pursuant to the HSSE and SD Transition Plan prior to the Business Risk Sharing Date, it shall remedy such failure during the Business Risk Sharing Period.”

	 	 	 
	  	
3.9.2

	
A new Clause 8.5.2A is inserted immediately after Clause 8.5.2 of the Framework Agreement as follows:

	 	 	 
	  	  	
“8.5.2A     Each of Cosan and Shell undertakes to hold the relevant JV Entities harmless from and against any Losses arising from any (i) breach of the Instrumento Particular de Contrato de Locação Atípica de Imóvel e Outras Avenças, entered into between Palermo Agrícola Ltda. and Cosan on 1st March 2010 (the “Built to Suit Agreement”) and (ii) any losses or damages caused to real property which is the subject of the Built to Suit Agreement, which are indemnifiable to Palermo Agrícola Ltda. under the Built to Suit Agreement.”

	 	 	 
	  	
3.9.3

	
Clause 8.7.2 of the Framework Agreement is deleted and replaced by the insertion of a new Clause 8.7.2 as follows:

	 	 	 
	  	  	
“8.7.2           Each of the Cosan Parties warrants on the Business Risk Sharing Date and is deemed to warrant on the Closing Date, to each of the Shell Parties that each of the contracts provided to Shell under Clause 8.7.1 is on arms’ length terms and in accordance with market conditions, as of the Business Risk Sharing Date and the Closing Date respectively.”

	 	 	 
	  	
3.9.4

	
Clause 8.7.3 of the Framework Agreement is deleted and replaced by the insertion of:

	 	 	 
	  	  	
“Cosan shall indemnify each JV Entity, the Shell Parties, Shell’s Affiliates and the directors, officers, employees, agents and representatives of the Shell Parties, Shell’s Affiliates and the JV Entities, (collectively, the “Clause 8 Indemnified Parties”) and shall save and hold them harmless against any Loss actually incurred or suffered by any of the Clause 8 Indemnified Parties that arise out of or relate to the warranty given or deemed to be given in Clause 8.7.2.”

	 	 	 
	  	
3.9.5

	
Clause 8.7.4 of the Framework Agreement is deleted.

	 	 	 
	  	
3.9.6

	
A new Clause 8.7A and a new Clause 8.7B are inserted immediately after Clause 8.7 of the Framework Agreement as follows:

	 	 	 
	  	  	
“8.7A Assignment of Real Estate Agreements

	 	 	 
	  	  	
8.7A.1 Each of the Cosan Parties warrants on the Business Risk Sharing Date and is deemed to warrant on the Closing Date, to each of the Shell Parties that the assignment of the agreements listed in the exhibit to the Real Estate Assignment Agreement and any subsequent additions thereto, are legal, valid and enforceable as of the Business Risk Sharing Date and the Closing Date respectively and encompass all the Real Estate Agreements that Cosan is required to assign to a JV Entity pursuant to this Agreement.

 

  

21

  

 

	  	  	
8.7A.2 Cosan shall indemnify the Clause 8 Indemnified Parties and shall save and hold them harmless against any Loss actually incurred or suffered by any of the Clause 8 Indemnified Parties that arise out of or relate to the warranty given or deemed to be given in Clause 8.7A.1 or, alternatively, Cosan shall be entitled, in lieu of such indemnification, to procure an alternative agreement or lease providing similar or greater benefits to the Sugar and Ethanol Co on substantially the same terms and conditions (or better to the Sugar and Ethanol Co), including in relation to the cost of transporting sugar cane, as the agreement which it replaces.

	 	 	 
	  	  	
8.7B Assignment of Sugar Cane Supply Contracts

	 	 	 
	  	  	
8.7B.1 Each of the Cosan Parties warrants on the Business Risk Sharing Date and is deemed to warrant on the Closing Date, to each of the Shell Parties that the assignment of the agreements listed in the exhibit to the Assignment and Assumption Agreement of Sugar Cane Supply Contracts and any subsequent additions thereto, is legal, valid and enforceable as of the date on which the Assignment and Assumption Agreement of Sugar Cane Supply Contracts is entered into.

	 	 	 
	  	  	
8.7B.2 Cosan shall indemnify the Clause 8 Indemnified Parties and shall save and hold them harmless against any Loss actually incurred or suffered by any of the Clause 8 Indemnified Parties that arise out of or relate to the warranty given or deemed to be given in Clause 8.7B.1 or, alternatively, Cosan shall be entitled, in lieu of such indemnification, to procure an alternative supply agreement providing similar or greater benefits to the Sugar and Ethanol Co on substantially the same terms and conditions (or better to the Sugar and Ethanol Co), including in relation to the cost of transporting sugar cane, as the agreement which it replaces.”

	 	 	 
	  	
3.9.7

	
Clause 8.9 of the Framework Agreement is deleted and replaced by the insertion of a new Clause 8.9 as follows:

	 	 	 
	  	  	
“8.9          Ancillary agreements

	 	 	 
	  	  	
Notwithstanding any provision herein or in any Agreed Form document that such document is in Agreed Form, any reference to the Clifford Chance address in an Agreed Form document shall be amended to Clifford Chance, Rua Funchal 418, 15th Floor, CEP: 04551-060 São Paulo – SP, Brazil Attention: Anthony Oldfield, Fax: +55 (11) 3019 6001.”

	 	 	 
	  	
3.9.8

	
Clause 8.11.1(f) of the Framework Agreement is deleted.

	 	 	 
	  	
3.9.9

	
Clause 8.11.2 of the Framework Agreement is amended by the deletion of the words “,  including those costs incurred pursuant to the Shell IT Agreement”.

 

  

22

  

 

	  	
3.9.10

	
Clause 8.17.1 of the Framework Agreement is amended by the insertion of the parenthetical “(including, for the avoidance of doubt, any refund or reimbursement of Taxes which relates to a Tax payment or Tax year ending before the Closing Date)” immediately after “any payment properly due”.

	 	 	 
	  	
3.9.11

	
Clause 8.19.3 of the Framework Agreement is amended by the deletion of the words “once finalized in accordance with Clause 7.2 (Confirmation of Transfer Assets)”.

	 	 	 
	  	
3.9.12

	
A new Clause 8.24 of the Framework Agreement is inserted as follows:

	 	 	 
	  	  	
“8.24  Accounting year end

	 	 	 
	  	  	
At one of the first two meetings of each Supervisory Board after Closing, Cosan and Shell shall ensure that the board of the relevant JV Entity discuss the proposal to harmonise the accounting year end dates of each JV Entity, consider the steps required to achieve such harmonisation and endeavour to reach a decision as to what those steps will be.  If a Supervisory Board is unable to reach a decision by the conclusion of its second meeting after Closing, such decision will be made at the sole discretion of the CFO of the Joint Venture.”

	 	 	 
	  	
3.9.13

	
A new Clause 8.25 of the Framework Agreement is inserted as follows:

	 	 	 
	  	  	
“8.25        Trading Policy

	 	 	 
	  	  	
8.25.1    By 30 April 2011, the Parties shall negotiate in good faith and in accordance with the Transaction Documents the wording of the provisions of the Joint Venture’s Trading Policy regarding:   (i) trading by the Joint Venture of non-sugarcane ethanol in Brazil; and (ii) trading by the Joint Venture of non-sugarcane ethanol outside of Brazil (subject to the Global Ethanol Trading Agreement).

	 	 	 
	  	  	
8.25.2    In the event the Parties cannot agree such wording by 30 April 2011, the Parties shall refer the matter to the persons to be nominated by Cosan and Shell as the Shareholder Representatives pursuant to the Shareholders’ Agreements for resolution.”

	 	 
	
3.10

	
Clause 9

	 	 
	  	
3.10.1

	
A new Clause 9.1.1A is inserted immediately after Clause 9.1.1 of the Framework Agreement as follows:

	 	 	 
	  	  	
“9.1.1A     Subject to Clause 9.1.7, immediately before the Business Risk Sharing Date, each of the Cosan Parties is deemed to warrant to each of the Shell Parties that, other than as set out in the Cosan Disclosure Letter and the Cosan Additional Information, the Cosan Warranties are true, accurate and not misleading by reference to the facts and circumstances on the Business Risk Sharing Date.”

	 	 	 
	  	
3.10.2

	
The reference to “Cosan Warranties” in Clause 9.1.2 of the Framework Agreement is amended to read “Cosan Closing Warranties”.

 

  

23

  

 

	  	
3.10.3

	
A new Clause 9.1.3A is inserted immediately after Clause 9.1.3 of the Framework Agreement as follows:

	 	 	 
	  	  	
“9.1.3A                      Subject to Clause 9.1.8, immediately before the Business Risk Sharing Date, each of the Shell Parties is deemed to warrant to each of the Cosan Parties that, other than as set out in the Shell Disclosure Letter and the Shell Additional Information, the Shell Warranties are true, accurate and not misleading by reference to the facts and circumstances on the Business Risk Sharing Date.”

	 	 	 
	  	
3.10.4

	
The reference to “Shell Warranties” in Clause 9.1.4 of the Framework Agreement is amended to read “Shell Closing Warranties”.

	 	 	 
	  	
3.10.5

	
Clause 9.2.1 of the Framework Agreement is amended by replacing the phrase “and (c)” with the phrase “(c) the date immediately before the Business Risk Sharing Date; and (d)”.

	 	 	 
	  	
3.10.6

	
Clause 9.2.2 of the Framework Agreement is amended by replacing the phrase “and (c)” with the phrase “(c) the date immediately before the Business Risk Sharing Date; and (d)”.

	 	 
	
3.11

	
Clause 10

	 	 
	  	
3.11.1

	
Clause 10.1.1(c) of the Framework Agreement shall be deleted and replaced by the insertion of:

	 	 	 
	  	
“(c)

	
by either Cosan or Shell (by notice in writing to all Parties) if the Closing would violate any nonappealable final order, decree or judgment of any Governmental Authority of competent jurisdiction;”

	 	 	 
	  	
3.11.2

	
Clause 10.1.1(d) of the Framework Agreement is amended by deleting the parenthetical “(including the Warranties)” and sub-clause 10.1.1(d)(i) and 10.1(d)(ii) in their entirety and replacing sub-clause 10.1.1(d)(iii) with the following:

	 	 	 
	  	
“(i)

	
render any Condition contained in Clause 5.1.2(c), Clause 5.1.3(d), Clause 5.1.3(f)(i) or, Clause 5.1.3(h) incapable of being cured by the Longstop Date”

	 	 	 
	
3.12

	
Clause 11

	 	 	 
	  	
3.12.1

	
Clause 11.4.1 of the Framework agreement is amended by the insertion of the parenthetical “(which, for the purposes of a Claim relating to Tax shall include the Cosan nominee member and the Shell nominee member of the Tax Coordination Committee, as defined in the Operating and Coordination Agreement)” after the words “shall be referred to the Claim Review Board”.

	 	 	 
	  	
3.12.2

	
A new Clause 11.1.8 of the Framework Agreement is inserted as follows:

	 	 	 
	  	  	
“11.1.8 No Party may make a claim under an indemnity granted pursuant to Clause 11.1.1 before the Closing Date.  If Closing does not happen, no Party may make a claim under an indemnity granted pursuant to Clause 11.1.1.”

 

  

24

  

 

	  	
3.12.3

	
Clause 11.3.2 of the Framework Agreement is amended by the deletion of sub-clauses (a) and (b) and their replacement by the insertion of a new sub-clause (a) as follows:

	 	 	 
	  	  	
“(a) by notice in writing to the other Parties on or before the Business Risk Sharing Date; and/or”

	 	 	 
	  	
3.12.4

	
A new Clause 11.3A of the Framework Agreement is inserted as follows:

	 	 	 
	  	  	
“11.3A Actions relating to shareholder

	 	 	 
	  	  	  	
11.3A.1       In respect of an Action in which a JV Entity is a plaintiff or a defendant and which relates to (i) the Cosan Downstream Business or the Cosan S&E Business before the Business Risk Sharing Date or (ii) the Cosan Excluded Assets:

	 	 	 	 
	  	  	  	
(a)               such JV Entity shall pay any amount which it receives (by way of award, damages, release of judicial deposit or otherwise) relating to such Action, to Cosan or its relevant Subsidiary; and

	 	 	 	 
	  	  	  	
(b)               Cosan or its relevant Subsidiary shall be liable in full for any external costs and expenses incurred by the JV Entity in respect of such Action.

	 	 	 	 
	  	  	  	
11.3A.2       In respect of an Action in which a JV Entity is a plaintiff or a defendant and which relates to (i) the Shell Downstream Business before the Business Risk Sharing Date or (ii) the Shell Excluded Assets:

	 	 	 	 
	  	  	  	
(a)               such JV Entity shall pay any amount which it receives (by way of award, damages, release of judicial deposit or otherwise) relating to such Action, to Shell or its relevant Subsidiary; and

	 	 	 	 
	  	  	  	
(b)               Shell or its relevant Subsidiary shall be liable in full for any external costs and expenses incurred by the JV Entity in respect of such Action.”

	 	 
	
3.13

	
Clause 20

	 	 
	  	
3.13.1

	
Each reference in Clause 20.1 of the Framework Agreement to a copy to be provided to:

	 	 	 
	  	  	
“Clifford Chance

Rua Helena 260, 6th Floor

CEP: 04552-050 São Paulo – SP

Brazil

Attention: Anthony Oldfield

Fax: +55 (11) 3049 3198”

	 	 	 
	  	  	
is amended to refer to a copy to be provided to:

 

  

25

  

 

	  	  	
“Clifford Chance

Rua Funchal 418, 15th Floor

CEP: 04551-060 São Paulo – SP

Brazil

Attention: Anthony Oldfield

Fax: +55 (11) 3019 6001”

	 	 	 
	  	
3.13.2

	
Clause 20.1.1 is amended by the insertion of the words“, by hand delivery” immediately after the words “by fax”.

	 	 	 
	  	
3.13.3

	
The notice address in Clause 20.1.1(i) of the Framework Agreement for Cosan/Cosan Limited/Cosan Distribuidora de Combustíveis Ltda./ Milimétrica Participações is deleted and replaced by:

	 	 	 
	  	  	
“Cosan S.A. Indústria e Comércio

Avenida Juscelino Kubitscheck 1327, 4th floor

CEP: 04543-011 Sao Paulo – SP

Brazil

Attention: Diretor Juridico e Diretor Financeiro

General Counsel and Chief Financial Officer

Fax: +55 (11) 3897 9799”

	 	 	 
	  	
3.13.4

	
A new Clause 20.1.3 is inserted immediately following the existing Clause 20.1.2 of the Framework Agreement as follows:

	 	 	 
	  	  	
20.1.3      Notwithstanding any other provision of this Agreement, any notice required hereunder to be sent to the Prospective Finance Committee may be sent by email as follows:

	 	 	 
	  	  	
(a)

	
if to Marcelo Martins (or any alternative person notified in writing to the other Parties by Cosan), to an email address notified by Cosan to the other Parties; and

	 	 	 	 
	  	  	
(b)

	
if to Tim Morrison (or any alternative person notified in writing to the other Parties by Shell), to an email address notified by Shell to the other Parties,

	 	 	 	 
	  	  	
provided that such notice must also be sent in accordance with the provisions of Clause 20.1.1.

	 	 
	
3.14

	
Schedules

	 	 
	  	
3.14.1

	
Schedule 1 (Cosan Assets) of the Framework Agreement is deleted and replaced by the insertion of the contents of Schedule 3 (Cosan Assets) to this Agreement.

	 	 	 
	  	
3.14.2

	
Schedule 2 (Shell Assets) of the Framework Agreement is deleted and replaced by the insertion of the contents of Schedule 4 (Shell Assets) to this Agreement.

	 	 	 
	  	
3.14.3

	
Schedule 3 (Cosan Excluded Assets) of the Framework Agreement is deleted and replaced by the insertion of the contents of Schedule 5 (Cosan Excluded Assets) to this Agreement.

 

  

26

  

 

	  	
3.14.4

	
Schedule 4 (Shell Excluded Assets) of the Framework Agreement is deleted and replaced by the insertion of the contents of Schedule 6 (Shell Excluded Assets) to this Agreement.

	 	 	 
	  	
3.14.5

	
The Parties agree that Schedule 1, Schedule 2, Schedule 3 and Schedule 4 of the Framework Agreement, as amended by this Agreement, are the final form of each such document, and each Party hereby irrevocably waives any right to amend or challenge any of them pursuant to any of Clauses 6.6, 6.9.3, 7.2 or 8.16 of the Framework Agreement.

	 	 	 
	  	
3.14.6

	
Schedule 7 (Closing Steps) is amended by the deletion of paragraph 9.1.12 (Transaction Documents) and of the immediately following paragraph described as 9 (Adoption of policies, principles, standards and plans) in their entirety and the insertion of a new paragraph 9.1.12 as follows:

	 	 	 
	  	  	
“9.1.12 Transaction Documents Execution (to the extent not previously executed), or adoption by each relevant JV Entity, of the documents and instruments referred to in Schedule 11 (Transaction Documents).”

	 	 	 
	  	
3.14.7

	
Schedule 11 (Transaction Documents) of the Framework Agreement is deleted and replaced by the insertion of the contents of Schedule 7 (Transaction Documents) to this Agreement.

	 	 	 
	  	
3.14.8

	
A new Schedule 18 (Retail Sugar Assets) and Schedule 19 (Retail Sugar Employees) are inserted immediately after Schedule 17 of the Framework Agreement in the form of Schedule 9 (Retail Sugar) to this Agreement.

	 	 	 
	  	
3.14.9

	
A new Schedule 20 (Interim Commodoties and Derivatives Policies) is inserted immediately after new Schedule 19 of the Framework Agreement in the form of Schedule 10 (Interim Commodoties and Derivatives Policies) to this Agreement.

	 	 
	
4.

	
GENERAL

	 	 
	
4.1

	
Construction

	 	 	 
	  	
4.1.1

	
The Framework Agreement and this Agreement shall hereafter be read and construed as one document and references in the Framework Agreement to ‘this Agreement’ or ‘the Framework Agreement’ shall be read and construed as references to the Framework Agreement as amended by this Agreement.

	 	 	 
	  	
4.1.2

	
Except where inconsistent with the provisions of this Agreement, the terms of the Framework Agreement are hereby confirmed and remain in full force and effect.

	 	 
	
4.2

	
Clause 20 of the Framework Agreement

	 	 
	  	  	
Clause 20 (General) of the Framework Agreement (as amended by this Agreement) shall apply to this Agreement as if it was set out in this Agreement, but as if references in that clause to the Framework Agreement were references to this Agreement.

 

  

27

  

 

	
5.

	
AGREED FORM DOCUMENTS

	 	 
	  	
The following documents which were in Agreed Form at the Signing Date, have been amended and new Agreed Form versions have been initialled on behalf of each of Cosan and Shell on or about the date of this Agreement:

	 	 
	  	
(a)

	
Aviation Commercial Services Agreement;

	 	 	 
	  	
(b)

	
Aviation Lubricants Agency Agreement;

	 	 	 
	  	
(c)

	
Business Plan;

	 	 	 
	  	
(d)

	
Global Ethanol Trading Agreement;

	 	 	 
	  	
(e)

	
Joint Venture Agreement;

	 	 	 
	  	
(f)

	
Retail Lubricants Agency Agreement;

	 	 	 
	  	
(g)

	
Shell Brand Licensing Agreement; and

	 	 	 
	  	
(h)

	
Sugar and Ethanol Shareholders’ Agreement.

	 	 	 
	
6.

	
COUNTERPARTS

	 	 
	  	
This Agreement may be executed in any number of counterparts each of which when executed and delivered is an original, but all the counterparts together constitute the same document.

	 	 
	
7.

	
GOVERNING LAW AND LANGUAGE

	 	 
	  	
7.1.1

	
This Agreement and all non contractual or other obligations arising out of or in connection with it are governed by English law.

	 	 	 
	  	
7.1.2

	
This Agreement is drawn up in the English language. If this Agreement is translated into another language, the English language text prevails.

	 	 	 
	
8.

	
ARBITRATION

	 	 	 
	  	
8.1.1

	
Any dispute (a “Dispute”) arising from or connected with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or the consequences of its nullity), will be referred to and finally resolved by arbitration under the Rules, which Rules are deemed to be incorporated by reference into this Clause 8.

	 	 	 
	  	
8.1.2

	
The tribunal will consist of three arbitrators two of whom will be nominated by the respective parties, and the third, who shall act as chairman, shall be a national of a member state of the Organisation for Economic Co-operation and Development (except the United States of America, England or the Netherlands) and nominated by the other two arbitrators together (but failing agreement within 30 days of the appointment of the second arbitrator, the third arbitrator shall be appointed by the ICC). The seat of the arbitration will be São Paulo, Brazil, and the language of the arbitration will be English.

 

  

28

  

 

	  	
8.1.3

	
The parties agree that the arbitral tribunal will have power to award on a provisional basis any relief that it would have power to grant on a final award.

	 	 	 
	  	
8.1.4

	
Without prejudice to the powers of the arbitrator provided by the Rules, statute or otherwise, the arbitrator will have power at any time, on the basis of written evidence and the submissions of the Parties alone, to make an award in favour of the claimant (or the respondent if a counterclaim) in respect of any claims (or counterclaims) to which there is no reasonably arguable defence, either at all or except as to the amount of any damages or other sum to be awarded.

	 	 	 
	  	
8.1.5

	
The Parties agree to keep confidential all materials used in and all awards received as a result of any Dispute proceedings, except to the extent required to be disclosed by applicable Law.

	 	 	 
	  	
8.1.6

	
The Parties exclude any rights to refer points of law or to appeal to the courts, to the extent that they can validly waive these rights.

 

  

29

  

SIGNATURES

 

THIS AGREEMENT has been signed and executed as a DEED by the Parties and is delivered by them on the date specified above.

 

	
COSAN

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

COSAN S.A. INDÚSTRIA E COMÉRCIO

by

	
)

) /s/ Marcelo Eduardo Martins

)

	  	
Name: Marcelo Eduardo Martins

Title:

	
and by

	
)

	  	
) /s/ Marcelo de Souza Scarcela Portela

	  	
)

	  	  
	  	
Name: Marcelo de Souza Scarcela Portela

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness

	 	  
	 	
 

	
Name of witness:

	  	  
	 	
 

	
Address of witness

	 	 	 
	 	 	 
	 	
 

	
Occupation of witness

	
 

	  
	 	 
	
COSAN DOWNSTREAM HOLDCO

	 
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

COSAN DISTRUIBUIDORA DE COMPUSTÍVEIS LTDA.

by

	
)

) /s/ Marcelo Eduardo Martins

)

)

	  	
Name: Marcelo Eduardo Martins

Title:

	
and by

	
)

	  	
) /s/ Marcelo de Souza Scarcela Portela

	  	
)

	  	
Name: Marcelo de Souza Scarcela Portela

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness

	  	  
	 	
 

	
Name of witness

	  	  
	 	
 

	
Address of witness

	 	 	 
	 	
 

	
Occupation of witness

  

30

  

 

	
COSAN LIMITED

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

COSAN LIMITED

by

	
)

) /s/ Marcelo Eduardo Martins

)

	  	
Name: Marcelo Eduardo Martins

Title:

	  	  
	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness /s/ Eleanor West

	  	  
	 	
 

	
Name of witness Eleanor West

	  	  
	 	
 

 

 

	
Address of witness Rua Funchal 418 15th Floor

SP 04551-060, São Paulo, Brazil

	 	 	 
	 	
 

	
Occupation of witness Solicitor

	  	  

 

 

	
MANAGEMENT CO

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

HOUCHES HOLDINGS S.A.

by

	
)

) /s/ R. Krug Fenz

)

	  	
Name: R. Krug Fenz

Title:

	
and by

	
)

	  	
) /s/ Richard M. Oblath

	  	
)

	  	  
	  	
Name: Richard M. Oblath

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness

	  	  
	 	
 

	
Name of witness

	  	  
	 	
 

	
Address of witness

	 	 	 
	
 

 

	
 

	
Occupation of witness

	  	  

  

31

  

 

 

	
SHELL

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

SHELL BRAZIL HOLDING B.V.

by

	
)

) /s/ Richard M. Oblath

)

	  	
Name: Richard M. Oblath

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness /s/ Eleanor West

	  	  
	 	
 

	
Name of witness Eleanor West

	  	  
	 	
 

	
Address of witness Rua Funchal 418 15th Floor

SP 04551-060, São Paulo, Brazil

	 	 	 
	 	
 

	
Occupation of witness Solicitor

	  	  

 

	
 

SHELL BRASIL LIMITADA

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

SHELL BRASIL LIMITADA

by

	
)

) /s/ R. Krug Fenz

)

	  	
Name: R. Krug Fenz

Title:

	
and by

	
)

	  	
) /s/ Richard M. Oblath

	  	
)

	  	  
	  	
Name: Richard M. Oblath

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness

	 	  	  
	 	
 

	
Name of witness

	  	  
	 	
 

 

 

	
Address of witness

	 	 	 
	 	
 

	
Occupation of witness

	  	  

 

  

32

  

 

	
SHELL UK CO

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

SHELL OVERSEAS HOLDINGS

LIMITED

by

	
)

) /s/ Richard M. Oblath

)

)

	  	
Name: Richard M. Oblath

Title:

	  	  
	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness /s/ Eleanor West

	  	  
	 	
 

	
Name of witness Eleanor West

	  	  
	 	
 

 

 

	
Address of witness Rua Funchal 418 15th Floor

SP 04551-060, São Paulo, Brazil

	 	 	 
	 	
 

	
Occupation of witness Solicitor

	  	  

 

 

  

33

  

 

	
SUGAR AND ETHANOL CO

	  
	
Executed as a DEED by

	  
	  	  
	
for and on behalf of

RAIZEN ENERGIA S.A.

by

	
)

) /s/ Marcelo Eduardo Martins

)

	  	
Name: Marcelo Eduardo Martins

Title:

	
and by

	
)

	  	
) /s/ Marcelo de Souza Scarcela Portela

 

	  	
)

	  	  
	  	
Name: Marcelo de Souza Scarcela Portela

Title:

	
in the presence of

	  
	  	  
	 	
 

	
Signature of witness

	  	  
	 	
 

	
Name of witness

	  	  
	 	
 

	
Address of witness

	 	 
	 	 
	 	 	
Occupation of witness

	  	  

 

 

 

 

34

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]