Document:

Exhibit 10.10

Exhibit I

THE
COMPANIES LAW (AS AMENDED)

COMPANY
LIMITED BY SHARES

MEMORANDUM
& ARTICLES OF ASSOCIATION

OF

STAR
BRAZIL CAYMAN LTD.

 

[WALKERS
LOGO]

Walker House, 87 Mary
Street. George Town

Grand Cayman KY1-9001, Cayman Islands

T 345 949 0100 F 345 949 7886
www.walkersglobal.com

REF:
AT/dd/L0677-60584

 

 

 

	
  

  	
  THE
  COMPANIES LAW (AS AMENDED)

  	
  REGISTERED
  AND FILED

  
	
   

  	
  COMPANY
  LIMITED BY SHARES

  	
  AS NO: 174667
  THIS 26TH DAY

  
	
   

  	
  MEMORANDUM
  OF ASSOCIATION

  	
  OF SEPTEMBER
  2006

  
	
   

  	
  OF

  	
  /s/ Illegible

  
	
   

  	
  STAR
  BRAZIL CAYMAN LTD.

  	
  ASST. REGISTRAR
  OF COMPANIES

  
	
   

  	
   

  	
  CAYMAN ISLANDS

  

 

1.                          The
name of the Company is STAR BRAZIL CAYMAN
LTD.

2.                          The
Registered Office of the Company will be situated at the offices of Walkers SPV Limited, Walker House, 87 Mary Street,
George Town, Grand Cayman KY1-9002, Cayman Islands or at such other
location as the Directors may from time to time determine.

3.                          The
objects for which the Company is established are unrestricted and the Company
shall have full power and authority to carry out any object not prohibited by
any law as provided by Section 7(4) of the Companies Law (as amended).

4.                          The
Company shall have and be capable of exercising all the functions of a natural
person of full capacity irrespective of any question of corporate benefit as
provided by Section 27(2) of the Companies Law (as amended).

5.                          Nothing
in the preceding sections shall be deemed to permit the Company to carry on the
business of a Bank or Trust Company without being licensed in that behalf under
the provisions of the Banks & Trust Companies Law (as amended), or to carry
on Insurance Business from within the Cayman Islands or the business of an
Insurance Manager, Agent, Sub-agent or Broker without being licensed in that
behalf under the provisions of the Insurance Law (as amended), or to carry on
the business of Company Management without being licensed in that behalf under
the provisions of the Companies Management Law (as amended).

6.                          The
Company will not trade in the Cayman Islands with any person, firm or
corporation except in furtherance of the business of the Company carried on
outside the Cayman Islands; provided that nothing in this section shall be
construed as to prevent the Company effecting and concluding contracts in the
Cayman Islands, and exercising in the Cayman Islands all of its powers
necessary for the carrying on of its business outside the Cayman Islands.

7.                          The
liability of the members is limited to the amount, if any, unpaid on the shares
respectively held by them.

8.                          The
capital of the Company is US$50,000.00
divided into 50,000 shares of a
nominal or par value of US$1.00
each provided always that subject to the provisions of the Companies Law (as
amended) and the Articles of Association the Company shall have power to redeem
or purchase any of its shares and to sub-divide or consolidate the said shares
or any of them and to issue all or any part of its capital whether original,
redeemed, increased or reduced with or without any preference, priority or
special privilege or subject to any postponement of rights or to any conditions
or restrictions whatsoever and so that unless the conditions of issue shall
otherwise expressly provide every issue of shares whether stated to be
Ordinary, Preference or otherwise shall be subject to the powers on the part of
the Company hereinbefore provided.

9.                          The Company
may exercise the power contained in Section 226 of the Companies Law (as
amended) to deregister in the Cayman Islands and be registered by way of
continuation in some other jurisdiction.

[SEAL]

 

 1
 

 

The undersigned, whose
name, address and description is subscribed, is desirous of being formed into a
Company in pursuance of this Memorandum of Association, and agrees to take the
number of shares in the capital of the Company set opposite his name.

	
  NAME, ADDRESS AND
  DESCRIPTION

  	
   

  	
  NUMBER OF SHARES TAKEN BY

  
	
  OF SUBSCRIBER

  	
   

  	
  SUBSCRIBER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Anne Todd

  	
   

  	
  ONE SHARE

  
	
  Attorney at Law

  	
   

  	
   

  
	
  87 Mary Street

  	
   

  	
   (Sgd) Anne Todd

  
	
  George Town

  	
   

  	
   Subscriber

  
	
  Grand Cayman
  KY1-9001

  	
   

  	
   

  
	
  Cayman Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:      26
  September 2006

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   (Sgd) Donnamae
  Dixon

  	
   

  	
   

  
	
   Signature
  of Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Donnamae Dixon

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  87 Mary Street, 
  Grand Cayman

  KY1-9001

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Occupation:

  	
  Secretary

  	
   

  	
   

  

I, JOY A. RANKINE Asst.,
Registrar of Companies, in and for the Cayman Islands, DO HEREBY CERTIFY that this is a true copy
of the Memorandum of Association of Star Brazil Cayman Ltd.

 

	
  /s/ Joy A. Rankine

  	
   

  	
   

  
	
  Dated this 26th of SEPTEMBER, 2006

  	
   

  

 

[SEAL]

 

 2

 

TABLE OF CONTENTS

	
  ARTICLE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  TABLE A

  	
   

  	
  1

  
	
  INTERPRETATION

  	
   

  	
  1

  
	
  PRELIMINARY

  	
   

  	
  2

  
	
  SHARES

  	
   

  	
  2

  
	
  VARIATION OF RIGHTS ATTACHING TO SHARES

  	
   

  	
  3

  
	
  CERTIFICATES

  	
   

  	
  3

  
	
  FRACTIONAL SHARES

  	
   

  	
  3

  
	
  LIEN

  	
   

  	
  3

  
	
  CALLS ON SHARES

  	
   

  	
  4

  
	
  FORFEITURE OF SHARES

  	
   

  	
  5

  
	
  TRANSFER OF SHARES

  	
   

  	
  5

  
	
  TRANSMISSION OF SHARES

  	
   

  	
  6

  
	
  REDEMPTION AND PURCHASE OF OWN SHARES

  	
   

  	
  7

  
	
  CLOSING REGISTER OF MEMBERS OR FIXING RECORD DATE

  	
   

  	
  7

  
	
  GENERAL MEETINGS

  	
   

  	
  8

  
	
  NOTICE OF GENERAL MEETINGS

  	
   

  	
  8

  
	
  PROCEEDINGS AT GENERAL MEETINGS

  	
   

  	
  8

  
	
  VOTES OF MEMBERS

  	
   

  	
  9

  
	
  CORPORATIONS ACTING BY REPRESENTATIVES AT MEETINGS

  	
   

  	
  10

  
	
  DIRECTORS

  	
   

  	
  10

  
	
  ALTERNATE DIRECTOR

  	
   

  	
  11

  
	
  POWERS AND DUTIES OF DIRECTORS

  	
   

  	
  11

  
	
  BORROWING POWERS OF DIRECTORS

  	
   

  	
  12

  
	
  THE SEAL

  	
   

  	
  12

  
	
  DISQUALIFICATION OF DIRECTORS

  	
   

  	
  13

  
	
  PROCEEDINGS OF DIRECTORS

  	
   

  	
  13

  
	
  DIVIDENDS

  	
   

  	
  15

  
	
  ACCOUNTS AND AUDIT

  	
   

  	
  16

  
	
  CAPITALISATION OF PROFITS

  	
   

  	
  16

  
	
  SHARE PREMIUM ACCOUNT

  	
   

  	
  17

  
	
  NOTICES

  	
   

  	
  17

  
	
  INDEMNITY

  	
   

  	
  18

  
	
  NON-RECOGNITION OF TRUSTS

  	
   

  	
  18

  

 

 i
 

 

 

	
  WINDING UP

  	
   

  	
  18

  
	
  AMENDMENT OF ARTICLES OF ASSOCIATION

  	
   

  	
  19

  
	
  REGISTRATION BY WAY OF CONTINUATION

  	
   

  	
  19

  

 

 ii

 

 

 

	
  

  	
  THE
  COMPANIES LAW (AS AMENDED)

  	
  REGISTERED
  AND FILED

  
	
   

  	
  COMPANY
  LIMITED BY SHARES

  	
  AS NO: 174667
  THIS 26TH DAY

  
	
   

  	
  ARTICLES
  OF ASSOCIATION

  	
  OF SEPTEMBER
  2006

  
	
   

  	
  OF

  	
  /s/ Illegible

  
	
   

  	
  STAR
  BRAZIL CAYMAN LTD.

  	
  ASST. REGISTRAR
  OF COMPANIES

  
	
   

  	
   

  	
  CAYMAN ISLANDS

  

 

TABLE A

The Regulations contained
or incorporated in Table ‘A’ in the First Schedule of the Companies Law (as
amended) shall not apply to this Company and the following Articles shall
comprise the Articles of Association of the Company:

INTERPRETATION

1.                          In these
Articles:

“Companies Law” means the
Companies Law (as amended) of the Cayman Islands;

“Directors”
and “Board of Directors” means the
Directors of the Company for the time being, or as the case may be, the
Directors assembled as a Board or as a committee thereof;

“Member”
means a person whose name is entered in the Register of Members and includes
each subscriber to the Memorandum of Association pending the issue to him of
the subscriber share or shares;

“Memorandum of
Association” means the Memorandum of Association of the Company, as
amended and re-stated from time to time;

“Ordinary Resolution”
means a resolution:

(a)                    passed by a
simple majority of such Members as, being entitled to do so, vote in person or,
where proxies are allowed, by proxy at a general meeting of the Company and
where a poll is taken regard shall be had in computing a majority to the number
of votes to which each Member is entitled; or

(b)                   approved in
writing by all of the Members entitled to vote at a general meeting of the
Company in one or more instruments each signed by one or more of the Members
and the effective date of the resolution so adopted shall be the date on which
the instrument, or the last of such instruments if more than one, is executed;

“paid up”
means paid up as to the par value and any premium payable in respect of the
issue of any shares and includes credited as paid up;

“Register of Members”
means the register to be kept by the Company in accordance with Section 40 of
the Companies Law;

“Seal”
means the Common Seal of the Company (if adopted) including any facsimile
thereof;

“share”
means any share in the capital of the Company, including a fraction of any
share;

[Seal]

 1
 

 

“signed”
includes a signature or representation of a signature affixed by mechanical
means;

“Special Resolution”
means a resolution passed in accordance with Section 60 of the Companies Law,
being a resolution:

(a)                    passed by a
majority of not less than two-thirds of such Members as, being entitled to do
so, vote in person or, where proxies are allowed, by proxy at a general meeting
of the Company of which notice specifying the intention to propose the
resolution as a Special Resolution has been duly given and where a poll is
taken regard shall be had in computing a majority to the number of votes to
which each Member is entitled; or

(b)                   approved in
writing by all of the Members entitled to vote at a general meeting of the
Company in one or more instruments each signed by one or more of the Members
and the effective date of the Special Resolution so adopted shall be the date
on which the instrument or the last of such instruments if more than one, is
executed.

2.                          In these
Articles, save where the context requires otherwise:

(a)                    words
importing the singular number shall include the plural number and vice versa;

(b)                   words
importing the masculine gender only shall include the feminine gender;

(c)                    words
importing persons only shall include companies or associations or bodies of
persons, whether corporate or not;

(d)                   “may” shall be construed as permissive and “shall” shall be construed as imperative;

(e)                    references
to a “dollar” or “dollars” or “$” is a reference to dollars of the United States; and

(f)                      references
to a statutory enactment shall include reference to any amendment or re-enactment
thereof for the time being in force.

3.                          Subject
to the last two preceding Articles, any words defined in the Companies Law
shall, if not inconsistent with the subject or context, bear the same meaning
in these Articles.

PRELIMINARY

4.                          The
business of the Company may be commenced as soon after incorporation as the
Directors see fit.

5.                          The
registered office of the Company shall be at such address in the Cayman Islands
as the Directors shall from time to time determine. The Company may in addition
establish and maintain such other offices and places of business and agencies
in such places as the Directors may from time to time determine.

SHARES

6.                          Subject
as otherwise provided in these Articles, all shares for the time being and from
time to time unissued shall be under the control of the Directors, and may be
re-designated, allotted or disposed of in such manner, to such persons and on
such terms as the Directors in their absolute discretion may think fit.

 2
 

 

7.                          The
Company may insofar as may be permitted by law, pay a commission to any person
in consideration of his subscribing or agreeing to subscribe whether absolutely
or conditionally for any shares. Such commissions may be satisfied by the
payment of cash or the lodgement of fully or partly paid-up shares or partly in
one way and partly in the other. The Company may also on any issue of shares
pay such brokerage as may be lawful.

VARIATION
OF RIGHTS ATTACHING TO SHARES

8.                          If at
any time the share capital is divided into different classes of shares, the
rights attaching to any class (unless otherwise provided by the terms of issue
of the shares of that class) may be varied or abrogated with the consent in
writing of the holders of two-thirds of the issued shares of that class, or
with the sanction of a resolution passed by at least a two-thirds majority of
the holders of shares of the class present in person or by proxy at a separate
general meeting of the holders of the shares of the class. To every such
separate general meeting the provisions of these Articles relating to general
meetings of the Company shall mutatis mutandis apply, but so that the necessary
quorum shall be at least one person holding or representing by proxy at least
one-third of the issued shares of the class and that any holder of shares of
the class present in person or by proxy may demand a poll.

9.                          The
rights conferred upon the holders of the shares of any class issued with
preferred or other rights shall not, unless otherwise expressly provided by the
terms of issue of the shares of that class, be deemed to be varied or abrogated
by the creation or issue of further shares ranking pari passu therewith or the redemption or purchase of shares
of any class by the Company.

CERTIFICATES

10.                    Every person
whose name is entered as a member in the Register of Members shall, without
payment, be entitled to a certificate in the form determined by the Directors.
Such certificate may be under the Seal. All certificates shall specify the
share or shares held by that person and the amount paid up thereon, provided
that in respect of a share or shares held jointly by several persons the
Company shall not be bound to issue more than one certificate, and delivery of
a certificate for a share to one of several joint holders shall be sufficient
delivery to all.

11.                    If a share
certificate is defaced, lost or destroyed it may be renewed on such terms, if
any, as to evidence and indemnity as the Directors think fit.

FRACTIONAL
SHARES

12.                    The Directors
may issue fractions of a share of any class of shares, and, if so issued, a
fraction of a share (calculated to three decimal points) shall be subject to
and carry the corresponding fraction of liabilities (whether with respect to
any unpaid amount thereon, contribution, calls or otherwise), limitations, preferences,
privileges, qualifications, restrictions, rights (including, without
limitation, voting and participation rights) and other attributes of a whole
share of the same class of shares.

LIEN

13.                    The Company
shall have a first priority lien and charge on every partly paid share for all
moneys (whether presently payable or not) called or payable at a fixed time in
respect of that share, and the Company shall also have a first priority lien
and charge on all partly paid shares standing registered in the name of a
Member (whether held solely or jointly with another person) for all moneys
presently payable by him or his estate to the Company, but the Directors may at
any time

 3
 

 

declare any share to be wholly or in part exempt from
the provisions of this Article. The Company’s lien, if any, on a share shall
extend to all distributions payable thereon.

14.                    The Company
may sell, in such manner as the Directors in their absolute discretion think
fit, any shares on which the Company has a lien, but no sale shall be made
unless an amount in respect of which the lien exists is presently payable nor
until the expiration of 14 days after a notice in writing, stating and
demanding payment of such part of the amount in respect of which the lien
exists as is presently payable, has been given to the registered holder for the
time being of the share, or the persons entitled thereto by reason of his death
or bankruptcy.

15.                    For giving
effect to any such sale the Directors may authorise some person to transfer the
shares sold to the purchaser thereof. The purchaser shall be registered as the
holder of the shares comprised in any such transfer and he shall not be bound
to see to the application of the purchase money, nor shall his title to the
shares be affected by any irregularity or invalidity in the proceedings in
reference to the sale.

16.                    The proceeds
of the sale after deduction of expenses, fees and commission incurred by the
Company shall be received by the Company and applied in payment of such part of
the amount in respect of which the lien exists as is presently payable, and the
residue shall (subject to a like lien for sums not presently payable as existed
upon the shares prior to the sale) be paid to the person entitled to the shares
at the date of the sale.

CALLS
ON SHARES

17.                    The Directors
may from time to time make calls upon the Members in respect of any moneys
unpaid on their partly paid shares, and each Member shall (subject to receiving
at least 14 days notice specifying the time or times of payment) pay to the
Company at the time or times so specified the amount called on such shares.

18.                    The joint
holders of a share shall be jointly and severally liable to pay calls in
respect thereof.

19.                    If a sum
called in respect of a share is not paid before or on the day appointed for
payment thereof, the person from whom the sum is due shall pay interest upon
the sum at the rate of eight per centum per annum from the day appointed for
the payment thereof to the time of the actual payment, but the Directors shall
be at liberty to waive payment of that interest wholly or in part.

20.                    The provisions
of these Articles as to the liability of joint holders and as to payment of
interest shall apply in the case of non-payment of any sum which, by the terms
of issue of a share, becomes payable at a fixed time, whether on account of the
amount of the share, or by way of premium, as if the same had become payable by
virtue of a call duly made and notified.

21.                    The Directors
may make arrangements on the issue of partly paid shares for a difference
between the Members, or the particular shares, in the amount of calls to be
paid and in the times of payment.

22.                    The Directors
may, if they think fit, receive from any Member willing to advance the same all
or any part of the moneys uncalled and unpaid upon any partly paid shares held
by him, and upon all or any of the moneys so advanced may (until the same
would, but for such advance, become presently payable) pay interest at such
rate (not exceeding without the sanction of an Ordinary Resolution, eight per
cent. per annum) as may be agreed upon between the Member paying the sum in
advance and the Directors.

 4
 

 

FORFEITURE OF SHARES

23.                    If a Member
fails to pay any call or instalment of a call in respect of partly paid shares
on the day appointed for payment, the Directors may, at any time thereafter
during such time as any part of such call or instalment remains unpaid, serve a
notice on him requiring payment of so much of the call or instalment as is
unpaid, together with any interest which may have accrued.

24.                    The notice
shall name a further day (not earlier than the expiration of 14 days from the
date of the notice) on or before which the payment required by the notice is to
be made, and shall state that in the event of non-payment at or before the time
appointed the shares in respect of which the call was made will be liable to be
forfeited.

25.                    If the
requirements of any such notice as aforesaid are not complied with, any share
in respect of which the notice has been given may at any time thereafter,
before the payment required by notice has been made, be forfeited by a
resolution of the Directors to that effect.

26.                    A forfeited
share may be sold or otherwise disposed of on such terms and in such manner as
the Directors think fit, and at any time before a sale or disposition the
forfeiture may be cancelled on such terms as the Directors think fit.

27.                    A person whose
shares have been forfeited shall cease to be a Member in respect of the
forfeited shares, but shall, notwithstanding, remain liable to pay to the
Company all moneys which at the date of forfeiture were payable by him to the
Company in respect of the shares forfeited, but his liability shall cease if
and when the Company receives payment in full of the amount unpaid on the
shares forfeited.

28.                    A statutory
declaration in writing that the declarant is a Director, and that a share has
been duly forfeited on a date stated in the declaration, shall be conclusive
evidence of the facts in the declaration as against all persons claiming to be
entitled to the share.

29.                    The Company
may receive the consideration, if any, given for a share on any sale or
disposition thereof pursuant to the provisions of these Articles as to
forfeiture and may execute a transfer of the share in favour of the person to
whom the share is sold or disposed of and that person shall be registered as
the holder of the share, and shall not be bound to see to the application of
the purchase money, if any, nor shall his title to the shares be affected by
any irregularity or invalidity in the proceedings in reference to the
disposition or sale.

30.                    The provisions
of these Articles as to forfeiture shall apply in the case of non-payment of
any sum which by the terms of issue of a share becomes due and payable, whether
on account of the amount of the share, or by way of premium, as if the same had
been payable by virtue of a call duly made and notified.

TRANSFER
OF SHARES

31.                    The instrument
of transfer of any share shall be in any usual or common form or such other
form as the Directors may, in their absolute discretion, approve and be
executed by or on behalf of the transferor and if in respect of a nil or partly
paid up share, or if so required by the Directors, shall also be executed on
behalf of the transferee, shall be accompanied by the certificate (if any) of
the shares to which it relates and such other evidence as the Directors may
reasonably require to show the right of the transferor to make the transfer.
The transferor shall be deemed to remain a holder of the share until the name
of the transferee is entered in the Register of Members in respect thereof.

 5
 

 

32.                    The Directors
may in their absolute discretion decline to register any transfer of shares
without assigning any reason therefor. If the Directors refuse to register a
transfer of any shares, they shall within two months after the date on which
the transfer was lodged with the Company send to the transferee notice of the
refusal.

33.                    The
registration of transfers may be suspended at such times and for such periods
as the Directors may, in their absolute discretion, from time to time
determine, provided always that such registration shall not be suspended for
more than 45 days in any year.

34.                    All
instruments of transfer which are registered shall be retained by the Company,
but any instrument of transfer which the Directors decline to register shall
(except in any case of fraud) be returned to the person depositing the same.

TRANSMISSION
OF SHARES

35.                    The legal
personal representative of a deceased sole holder of a share shall be the only
person recognised by the Company as having any title to the share. In the case
of a share registered in the name of two or more holders, the survivors or
survivor, or the legal personal representatives of the deceased survivor, shall
be the only person recognised by the Company as having any title to the share.

36.                    Any person
becoming entitled to a share in consequence of the death or bankruptcy of a
Member shall upon such evidence being produced as may from time to time be
required by the Directors, have the right either to be registered as a Member
in respect of the share or, instead of being registered himself, to make such
transfer of the share as the deceased or bankrupt person could have made; but
the Directors shall, in either case, have the same right to decline or suspend
registration as they would have had in the case of a transfer of the share by
the deceased or bankrupt person before the death or bankruptcy.

37.                    A person
becoming entitled to a share by reason of the death or bankruptcy of the holder
shall be entitled to the same dividends and other advantages to which he would
be entitled if he were the registered holder of the share, except that he shall
not, before being registered as a Member in respect of the share, be entitled
in respect of it to exercise any right conferred by membership in relation to
meetings of the Company.

ALTERATION
OF CAPITAL

38.                    The Company
may from time to time by Ordinary Resolution increase the share capital by such
sum, to be divided into shares of such classes and amount, as the resolution
shall prescribe.

39.                    The Company
may by Ordinary Resolution:

(a)                    consolidate
and divide all or any of its share capital into shares of a larger amount than
its existing shares;

(b)                   convert all or
any of its paid up shares into stock and reconvert that stock into paid up
shares of any denomination;

(c)                    subdivide its
existing shares, or any of them into shares of a smaller amount provided that
in the subdivision the proportion between the amount paid and the amount, if
any, unpaid on each reduced share shall be the same as it was in case of the
share from which the reduced share is derived;

 6
 

 

(d)                   cancel any
shares which, at the date of the passing of the resolution, have not been taken
or agreed to be taken by any person and diminish the amount of its share
capital by the amount of the shares so cancelled.

40.                    The Company
may by Special Resolution reduce its share capital and any capital redemption
reserve in any manner authorised by law.

REDEMPTION
AND PURCHASE OF OWN SHARES

41.                    Subject to the
provisions of the Companies Law, the Company may:

(a)                    issue shares
on terms that they are to be redeemed or are liable to be redeemed at the
option of the Company or the Member on such terms and in such manner as the
Directors may, before the issue of such shares, determine;

(b)                   purchase its
own shares (including any redeemable shares) on such terms and in such manner
as the Directors may determine and agree with the Member; and

(c)                    make a payment
in respect of the redemption or purchase of its own shares otherwise than out
of profits or the proceeds of a fresh issue of shares.

42.                    Any share in
respect of which notice of redemption has been given shall not be entitled to
participate in the profits of the Company in respect of the period after the
date specified as the date of redemption in the notice of redemption.

43.                    The redemption
or purchase of any share shall not be deemed to give rise to the redemption or
purchase of any other share.

44.                    The Directors
may when making payments in respect of redemption or purchase of shares, if
authorised by the terms of issue of the shares being redeemed or purchased or
with the agreement of the holder of such shares, make such payment either in
cash or in specie.

CLOSING
REGISTER OF MEMBERS OR FIXING RECORD DATE

45.                    For the
purpose of determining those Members that are entitled to receive notice of,
attend or vote at any meeting of Members or any adjournment thereof, or those
Members that are entitled to receive payment of any dividend, or in order to
make a determination as to who is a Member for any other purpose, the Directors
may provide that the Register of Members shall be closed for transfers for a
stated period which shall not exceed in any case 40 days. If the Register of
Members shall be so closed for the purpose of determining those Members that
are entitled to receive notice of, attend or vote at a meeting of Members the
register shall be so closed for at least 10 days immediately preceding such
meeting and the record date for such determination shall be the date of the
closure of the Register of Members.

46.                    In lieu of or
apart from closing the Register of Members, the Directors may fix in advance a
date as the record date for any such determination of those Members that are
entitled to receive notice of, attend or vote at a meeting of the Members and
for the purpose of determining those Members that are entitled to receive
payment of any dividend the Directors may, at or within 90 days prior to the
date of declaration of such dividend fix a subsequent date as the record date
for such determination.

47.                    If the
Register of Members is not so closed and no record date is fixed for the
determination of those Members entitled to receive notice of, attend or vote at
a meeting of Members or those Members that are entitled to receive payment of a
dividend, the date on which notice of the

 7
 

 

meeting is posted or the date on which the resolution
of the Directors declaring such dividend is adopted, as the case may be, shall
be the record date for such determination of Members. When a determination of
those Members that are entitled to receive notice of, attend or vote at a
meeting of Members has been made as provided in this Article, such
determination shall apply to any adjournment thereof.

GENERAL
MEETINGS

48.                    The Directors
may, whenever they think fit, convene a general meeting of the Company.

49.                    General
meetings shall also be convened on the written requisition of any Member or
Members entitled to attend and vote at general meetings of the Company who hold
not less than 10 per cent of the paid up voting share capital of the Company
deposited at the registered office of the Company specifying the objects of the
meeting for a date no later than 21 days from the date of deposit of the
requisition signed by the requisitionists, and if the Directors do not convene
such meeting for a date not later than 45 days after the date of such deposit,
the requisitionists themselves may convene the general meeting in the same
manner, as nearly as possible, as that in which general meetings may be
convened by the Directors, and all reasonable expenses incurred by the
requisitionists as a result of the failure of the Directors to convene the
general meeting shall be reimbursed to them by the Company.

50.                    If at any time
there are no Directors, any two Members (or if there is only one Member then
that Member) entitled to vote at general meetings of the Company may convene a
general meeting in the same manner as nearly as possible as that in which
meetings may be convened by the Directors.

NOTICE
OF GENERAL MEETINGS

51.                    At least seven
days notice counting from the date service is deemed to take place as provided
in these Articles specifying the place, the day and the hour of the meeting
and, in case of special business, the general nature of that business, shall be
given in the manner hereinafter provided or in such other manner (if any) as
may be prescribed by the Company by Ordinary Resolution to such persons as are,
under these Articles, entitled to receive such notices from the Company, but
with the consent of all the Members entitled to receive notice of some
particular meeting and attend and vote thereat, that meeting may be convened by
such shorter notice or without notice and in such manner as those Members may
think fit.

52.                    The accidental
omission to give notice of a meeting to or the non-receipt of a notice of a
meeting by any Member shall not invalidate the proceedings at any meeting.

PROCEEDINGS
AT GENERAL MEETINGS

53.                    All business
carried out at a general meeting shall be deemed special with the exception of
sanctioning a dividend, the consideration of the accounts, balance sheets, and
any report of the Directors or of the Company’s auditors, the appointment and
removal of Directors and the fixing of the remuneration of the Company’s
auditors. No special business shall be transacted at any general meeting
without the consent of all Members entitled to receive notice of that meeting
unless notice of such special business has been given in the notice convening
that meeting.

54.                    No business
shall be transacted at any general meeting unless a quorum of Members is
present at the time when the meeting proceeds to business. Save as otherwise
provided by these Articles, one or more Members holding at least a majority of
the paid up voting share capital of the Company present in person or by proxy
shall be a quorum.

 8
 

 

55.                    If within half
an hour from the time appointed for the meeting a quorum is not present, the
meeting, if convened upon the requisition of Members, shall be dissolved. In
any other case it shall stand adjourned to the same day in the next week, at
the same time and place, and if at the adjourned meeting a quorum is not
present within half an hour from the time appointed for the meeting the Member
or Members present and entitled to vote shall be a quorum.

56.                    If the
Directors wish to make this facility available to Members for a specific or all
general meetings of the Company, a Member may participate in any general
meeting of the Company, by means of a telephone or similar communication
equipment by way of which all persons participating in such meeting can hear
each other and such participation shall be deemed to constitute presence in
person at the meeting.

57.                    The chairman,
if any, of the Board of Directors shall preside as chairman at every general
meeting of the Company.

58.                    If there is no
such chairman, or if at any general meeting he is not present within fifteen
minutes after the time appointed for holding the meeting or is unwilling to act
as chairman, the Members present shall choose one of their number to be
chairman of that meeting.

59.                    The chairman
may with the consent of any general meeting at which a quorum is present (and
shall if so directed by the meeting) adjourn a meeting from time to time and from
place to place, but no business shall be transacted at any adjourned meeting
other than the business left unfinished at the meeting from which the
adjournment took place. When a meeting is adjourned for 14 days or more, notice
of the adjourned meeting shall be given as in the case of an original meeting.
Save as aforesaid it shall not be necessary to give any notice of an
adjournment or of the business to be transacted at an adjourned meeting.

60.                    At any general
meeting a resolution put to the vote of the meeting shall be decided on a show
of hands, unless a poll is (before or on the declaration of the result of the
show of hands) demanded by one or more Members present in person or by proxy
entitled to vote, and unless a poll is so demanded, a declaration by the
chairman that a resolution has, on a show of hands, been carried, or carried
unanimously, or by a particular majority, or lost, and an entry to that effect
in the book of the proceedings of the Company, shall be conclusive evidence of
the fact, without proof of the number or proportion of the votes recorded in
favour of, or against, that resolution.

61.                    If a poll is
duly demanded it shall be taken in such manner as the chairman directs, and the
result of the poll shall be deemed to be the resolution of the meeting at which
the poll was demanded.

62.                    In the case of
an equality of votes, whether on a show of hands or on a poll, the chairman of
the meeting at which the show of hands takes place or at which the poll is
demanded, shall be entitled to a second or casting vote.

63.                    A poll
demanded on the election of a chairman of the meeting or on a question of
adjournment shall be taken forthwith. A poll demanded on any other question
shall be taken at such time as the chairman of the meeting directs.

VOTES
OF MEMBERS

64.                    Subject to any
rights and restrictions for the time being attached to any class or classes of
shares, on a show of hands every Member present in person and every person
representing a Member by proxy shall at a general meeting of the Company have
one vote and on a poll every Member and every person representing a Member by
proxy shall have one vote for each share of which he or the person represented
by proxy is the holder.

 9
 

 

65.                    In the case of
joint holders the vote of the senior who tenders a vote whether in person or by
proxy shall be accepted to the exclusion of the votes of the joint holders and
for this purpose seniority shall be determined by the order in which the names
stand in the Register of Members.

66.                    A Member of
unsound mind, or in respect of whom an order has been made by any court having
jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by
his committee, or other person in the nature of a committee appointed by that
court, and any such committee or other person may vote by proxy.

67.                    No Member
shall be entitled to vote at any general meeting unless all calls or other sums
presently payable by him in respect of shares carrying the right to vote held
by him have been paid.

68.                    On a poll
votes may be given either personally or by proxy.

69.                    The instrument
appointing a proxy shall be in writing under the hand of the appointor or of
his attorney duly authorised in writing or, if the appointor is a corporation,
either under seal or under the hand of an officer or attorney duly authorised.
A proxy need not be a Member.

70.                    An instrument
appointing a proxy may be in any usual or common form or such other form as the
Directors may approve.

71.                    The instrument
appointing a proxy shall be deemed to confer authority to demand or join in
demanding a poll.

72.                    A resolution
in writing signed by all the Members for the time being entitled to receive
notice of and to attend and vote at general meetings (or being corporations by
their duly authorised representatives) shall be as valid and effective as if
the same had been passed at a general meeting of the Company duly convened and
held.

CORPORATIONS
ACTING BY REPRESENTATIVES AT MEETINGS

73.                    Any
corporation which is a Member or a Director may by resolution of its directors
or other governing body authorise such person as it thinks fit to act as its
representative at any meeting of the Company or of any class of Members or of
the Board of Directors or of a committee of Directors, and the person so
authorised shall be entitled to exercise the same powers on behalf of the
corporation which he represents as that corporation could exercise if it were
an individual Member or Director.

DIRECTORS

74.                    The name of
the first Director(s) shall either be determined in writing by a majority (or
in the case of a sole subscriber that subscriber) of, or elected at a meeting
of, the subscribers of the Memorandum of Association.

75.                    The Company
may by Ordinary Resolution appoint any person to be a Director.

76.                    Subject to the
provisions of these Articles, a Director shall hold office until such time as
he is removed from office by the Company by Ordinary Resolution.

77.                    The Company
may by Ordinary Resolution from time to time fix the maximum and minimum number
of Directors to be appointed but unless such number is fixed as aforesaid the
number of Directors shall be unlimited.

 10
 

 

78.                    The
remuneration of the Directors may be determined by the Board of Directors or by
the Company by Ordinary Resolution.

79.                    There shall be
no shareholding qualification for Directors unless determined otherwise by the
Company by Ordinary Resolution.

80.                    The Directors
shall have power at any time and from time to time to appoint a person as
Director, either as a result of a casual vacancy or as an additional Director,
subject to the maximum number (if any) imposed by the Company by Ordinary
Resolution.

ALTERNATE
DIRECTOR

81.                    Any Director
may in writing appoint another person to be his alternate to act in his place
at any meeting of the Directors at which he is unable to be present. Every such
alternate shall be entitled to notice of meetings of the Directors and to
attend and vote thereat as a Director when the person appointing him is not
personally present and where he is a Director to have a separate vote on behalf
of the Director he is representing in addition to his own vote. A Director may
at any time in writing revoke the appointment of an alternate appointed by him.
Such alternate shall not be an officer of the Company and shall be deemed to be
the agent of the Director appointing him. The remuneration of such alternate
shall be payable out of the remuneration of the Director appointing him and the
proportion thereof shall be agreed between them.

82.                    Any Director
may appoint any person, whether or not a Director, to be the proxy of that
Director to attend and vote on his behalf, in accordance with instructions
given by that Director, or in the absence of such instructions at the
discretion of the proxy, at a meeting or meetings of the Directors which that
Director is unable to attend personally. The instrument appointing the proxy
shall be in writing under the hand of the appointing Director and shall be in
any usual or common form or such other form as the Directors may approve, and
must be lodged with the chairman of the meeting of the Directors at which such
proxy is to be used, or first used, prior to the commencement of the meeting.

POWERS
AND DUTIES OF DIRECTORS

83.                    Subject to the
provisions of the Companies Law, these Articles and to any resolutions made in
a general meeting, the business of the Company shall be managed by the
Directors, who may pay all expenses incurred in setting up and registering the
Company and may exercise all powers of the Company. No resolution made by the
Company in general meeting shall invalidate any prior act of the Directors
which would have been valid if that resolution had not been made.

84.                    The Directors
may from time to time appoint any person, whether or not a Director to hold
such office in the Company as the Directors may think necessary for the
administration of the Company, including but not limited to, the office of
president, one or more vice-presidents, treasurer, assistant treasurer, manager
or controller, and for such term and at such remuneration (whether by way of
salary or commission or participation in profits or partly in one way and
partly in another), and with such powers and duties as the Directors may think
fit. Any person so appointed by the Directors may be removed by the Directors.
The Directors may also appoint one or more of their number to the office of
managing director upon like terms, but any such appointment shall ipso facto
determine if any managing director ceases from any cause to be a Director, or
if the Company by Ordinary Resolution resolves that his tenure of office be
terminated.

85.                    The Directors
may appoint a Secretary (and if need be an Assistant Secretary or Assistant
Secretaries) who shall hold office for such term, at such remuneration and upon
such conditions

 11
 

 

and with such powers as they think fit. Any Secretary
or Assistant Secretary so appointed by the Directors may be removed by the
Directors.

86.                    The Directors
may delegate any of their powers to committees consisting of such member or
members of their body as they think fit; any committee so formed shall in the
exercise of the powers so delegated conform to any regulations that may be
imposed on it by the Directors.

87.                    The Directors
may from time to time and at any time by power of attorney appoint any company,
firm or person or body of persons, whether nominated directly or indirectly by
the Directors, to be the attorney or attorneys of the Company for such purposes
and with such powers, authorities and discretion (not exceeding those vested in
or exercisable by the Directors under these Articles) and for such period and
subject to such conditions as they may think fit, and any such power of
attorney may contain such provisions for the protection and convenience of
persons dealing with any such attorney as the Directors may think fit, and may also
authorise any such attorney to delegate all or any of the powers, authorities
and discretion vested in him.

88.                    The Directors
may from time to time provide for the management of the affairs of the Company
in such manner as they shall think fit and the provisions contained in the
three next following Articles shall not limit the general powers conferred by
this Article.

89.                    The Directors
from time to time and at any time may establish any committees, local boards or
agencies for managing any of the affairs of the Company and may appoint any
persons to be members of such committees or local boards and may appoint any
managers or agents of the Company and may fix the remuneration of any such
persons.

90.                    The Directors
from time to time and at any time may delegate to any such committee, local
board, manager or agent any of the powers, authorities and discretions for the
time being vested in the Directors and may authorise the members for the time
being of any such local board, or any of them to fill any vacancies therein and
to act notwithstanding vacancies and any such appointment or delegation may be
made on such terms and subject to such conditions as the Directors may think
fit and the Directors may at any time remove any person so appointed and may annul
or vary any such delegation, but no person dealing in good faith and without
notice of any such annulment or variation shall be affected thereby.

91.                    Any such
delegates as aforesaid may be authorised by the Directors to subdelegate all or
any of the powers, authorities, and discretion for the time being vested in
them.

BORROWING
POWERS OF DIRECTORS

92.                    The Directors may exercise all the powers of
the Company to borrow money and to mortgage or charge its undertaking, property
and uncalled capital or any part thereof, to issue debentures, debenture stock
and other securities whenever money is borrowed or as security for any debt,
liability or obligation of the Company or of any third party.

THE
SEAL

93.                    The Seal shall
not be affixed to any instrument except by the authority of a resolution of the
Board of Directors provided always that such authority may be given prior to or
after the affixing of the Seal and if given after may be in general form
confirming a number of affixings of the Seal. The Seal shall be affixed in the
presence of a Director or a Secretary (or an Assistant Secretary) or in the
presence of any one or more persons as the Directors may appoint for the
purpose and every person as aforesaid shall sign every instrument to which the
Seal is so affixed in their presence.

 12
 

 

94.                    The Company
may maintain a facsimile of the Seal in such countries or places as the
Directors may appoint and such facsimile Seal shall not be affixed to any
instrument except by the authority of a resolution of the Board of Directors
provided always that such authority may be given prior to or after the affixing
of such facsimile Seal and if given after may be in general form confirming a
number of affixings of such facsimile Seal. The facsimile Seal shall be affixed
in the presence of such person or persons as the Directors shall for this
purpose appoint and such person or persons as aforesaid shall sign every
instrument to which the facsimile Seal is so affixed in their presence and such
affixing of the facsimile Seal and signing as aforesaid shall have the same
meaning and effect as if the Seal had been affixed in the presence of and the
instrument signed by a Director or a Secretary (or an Assistant Secretary) or
in the presence of any one or more persons as the Directors may appoint for the
purpose.

95.                    Notwithstanding
the foregoing, a Secretary or any Assistant Secretary shall have the authority
to affix the Seal, or the facsimile Seal, to any instrument for the purposes of
attesting authenticity of the matter contained therein but which does not
create any obligation binding on the Company.

DISQUALIFICATION
OF DIRECTORS

96.                    The office of
Director shall be vacated, if the Director:

(a)                    becomes
bankrupt or makes any arrangement or composition with his creditors;

(b)                   is found to be
or becomes of unsound mind;

(c)                    resigns his
office by notice in writing to the Company;

(d)                   is removed from
office by Ordinary Resolution; or

(e)                    is removed
from office by notice addressed to him at his last known address and signed by
all his co-Directors (not being less than two in number).

PROCEEDINGS
OF DIRECTORS

97.                    The Directors
may meet together (either within or without the Cayman Islands) for the
despatch of business, adjourn, and otherwise regulate their meetings and
proceedings as they think fit. Questions arising at any meeting shall be
decided by a majority of votes. In case of an equality of votes the chairman
shall have a second or casting vote. A Director may, and a Secretary or
Assistant Secretary on the requisition of a Director shall, at any time summon
a meeting of the Directors.

98.                    A Director or
Directors may participate in any meeting of the Board of Directors, or of any
committee appointed by the Board of Directors of which such Director or
Directors are members, by means of telephone or similar communication equipment
by way of which all persons participating in such meeting can hear each other
and such participation shall be deemed to constitute presence in person at the
meeting.

99.                    The quorum
necessary for the transaction of the business of the Directors may be fixed by
the Directors, and unless so fixed, if there be two or more Directors shall be
two, and if there be one Director the quorum shall be one. A Director
represented by proxy or by an Alternate Director at any meeting shall be deemed
to be present for the purposes of determining whether or not a quorum is
present.

100.              A Director who is in
any way, whether directly or indirectly, interested in a contract or proposed
contract with the Company shall declare the nature of his interest at a meeting
of the Directors. A

 13
 

 

general notice given to the Board of Directors by any
Director to the effect that he is a member of any specified company or firm and
is to be regarded as interested in any contract which may thereafter be made
with that company or firm shall be deemed a sufficient declaration of interest
in regard to any contract so made. A Director may vote in respect of any
contract or proposed contract or arrangement notwithstanding that he may be
interested therein and if he does so his vote shall be counted and he may be
counted in the quorum at any meeting of the Directors at which any such
contract or proposed contract or arrangement shall come before the meeting for
consideration.

101.              A Director may hold
any other office or place of profit under the Company (other than the office of
auditor) in conjunction with his office of Director for such period and on such
terms (as to remuneration and otherwise) as the Directors may determine and no
Director or intending Director shall be disqualified by his office from
contracting with the Company either with regard to his tenure of any such other
office or place of profit or as vendor, purchaser or otherwise, nor shall any
such contract or arrangement entered into by or on behalf of the Company in
which any Director is in any way interested, be liable to be avoided, nor shall
any Director so contracting or being so interested be liable to account to the
Company for any profit realised by any such contract or arrangement by reason
of such Director holding that office or of the fiduciary relation thereby
established. A Director, notwithstanding his interest, may be counted in the
quorum present at any meeting of the Directors whereat he or any other Director
is appointed to hold any such office or place of profit under the Company or
whereat the terms of any such appointment are arranged and he may vote on any
such appointment or arrangement.

102.              Any Director may act
by himself or his firm in a professional capacity for the Company, and he or
his firm shall be entitled to remuneration for professional services as if he
were not a Director; provided that nothing herein contained shall authorise a
Director or his firm to act as auditor to the Company.

103.              The Directors shall
cause minutes to be made in books or loose-leaf folders provided for the
purpose of recording:

(a)                    all
appointments of officers made by the Directors;

(b)                   the names of
the Directors present at each meeting of the Directors and of any committee of
the Directors;

(c)                    all
resolutions and proceedings at all meetings of the Company, and of the
Directors and of committees of Directors.

104.              When the chairman of
a meeting of the Directors signs the minutes of such meeting those minutes
shall be deemed to have been duly held notwithstanding that all the Directors
have not actually come together or that there may have been a technical defect
in the proceedings.

105.              A resolution signed
by all the Directors shall be as valid and effectual as if it had been passed
at a meeting of the Directors duly called and constituted. When signed a
resolution may consist of several documents each signed by one or more of the
Directors.

106.              The continuing
Directors may act notwithstanding any vacancy in their body but if and so long
as their number is reduced below the number fixed by or pursuant to these
Articles as the necessary quorum of Directors, the continuing Directors may act
for the purpose of increasing the number, or of summoning a general meeting of
the Company, but for no other purpose.

107.              The Directors may
elect a chairman of their meetings and determine the period for which he is to
hold office but if no such chairman is elected, or if at any meeting the
chairman is not present

 14
 

 

within fifteen minutes after the time appointed for
holding the meeting, the Directors present may choose one of their number to be
chairman of the meeting.

108.              A committee
appointed by the Directors may elect a chairman of its meetings. If no such
chairman is elected, or if at any meeting the chairman is not present within
five minutes after the time appointed for holding the meeting, the members
present may choose one of their number to be chairman of the meeting.

109.              A committee
appointed by the Directors may meet and adjourn as it thinks proper. Questions
arising at any meeting shall be determined by a majority of votes of the
committee members present and in case of an equality of votes the chairman
shall have a second or casting vote.

110.              All acts done by any
meeting of the Directors or of a committee of Directors, or by any person
acting as a Director, shall notwithstanding that it be afterwards discovered
that there was some defect in the appointment of any such Director or person
acting as aforesaid, or that they or any of them were disqualified, be as valid
as if every such person had been duly appointed and was qualified to be a
Director.

DIVIDENDS

111.              Subject to any
rights and restrictions for the time being attached to any class or classes of
shares, the Directors may from time to time declare dividends (including
interim dividends) and other distributions on shares in issue and authorise
payment of the same out of the funds of the Company lawfully available
therefor.

112.              Subject to any
rights and restrictions for the time being attached to any class or classes of
shares, the Company by Ordinary Resolution may declare dividends, but no
dividend shall exceed the amount recommended by the Directors.

113.              The Directors may,
before recommending or declaring any dividend, set aside out of the funds
legally available for distribution such sums as they think proper as a reserve
or reserves which shall, in the absolute discretion of the Directors be
applicable for meeting contingencies, or for equalising dividends or for any
other purpose to which those funds may be properly applied and pending such
application may in the absolute discretion of the Directors, either be employed
in the business of the Company or be invested in such investments (other than
shares) as the Directors may from time to time think fit.

114.              Any dividend may be
paid by cheque sent through the post to the registered address of the Member or
person entitled thereto, or in the case of joint holders, to any one of such
joint holders at his registered address or to such person and such address as
the Member or person entitled, or such joint holders as the case may be, may
direct. Every such cheque shall be made payable to the order of the person to
whom it is sent or to the order of such other person as the Member or person
entitled, or such joint holders as the case may be, may direct.

115.              The Directors when
paying dividends to the Members in accordance with the provisions of these
Articles may make such payment either in cash or in specie.

116.              Subject to any
rights and restrictions for the time being attached to any class or classes of
shares, all dividends shall be declared and paid according to the amounts paid
on the shares, but if and so long as nothing is paid up on any of the shares
dividends may be declared and paid according to the par value of the shares. No
amount paid on a share in advance of calls shall, while carrying interest, be
treated for the purposes of this Article as paid on the share.

117.              If several persons
are registered as joint holders of any share, any of them may give effectual
receipts for any dividend or other moneys payable on or in respect of the
share.

 15
 

 

118.              No dividend shall
bear interest against the Company.

ACCOUNTS
AND AUDIT

119.              The books of account
relating to the Company’s affairs shall be kept in such manner as may be
determined from time to time by the Directors.

120.              The books of account
shall be kept at the registered office of the Company, or at such other place
or places as the Directors think fit, and shall always be open to the inspection
of the Directors.

121.              The Directors shall
from time to time determine whether and to what extent and at what times and
places and under what conditions or regulations the accounts and books of the
Company or any of them shall be open to the inspection of Members not being
Directors, and no Member (not being a Director) shall have any right of
inspecting any account or book or document of the Company except as conferred
by law or authorised by the Directors or by the Company by Ordinary Resolution.

122.              The accounts
relating to the Company’s affairs shall only be audited if the Directors so
determine, in which case the financial year end and the accounting principles
will be determined by the Directors.

CAPITALISATION
OF PROFITS

123.              Subject to the
Companies Law, the Directors may, with the authority of an Ordinary Resolution:

(a)                    resolve to
capitalise an amount standing to the credit of reserves (including a share
premium account, capital redemption reserve and profit and loss account),
whether or not available for distribution;

(b)                   appropriate the
sum resolved to be capitalised to the Members in proportion to the nominal
amount of shares (whether or not fully paid) held by them respectively and
apply that sum on their behalf in or towards:

(i)                        paying up
the amounts (if any) for the time being unpaid on shares held by them
respectively, or

(ii)                     paying up in
full unissued shares or debentures of a nominal amount equal to that sum,

and allot the shares or debentures, credited as fully
paid, to the Members (or as they may direct) in those proportions, or partly in
one way and partly in the other, but the share premium account, the capital
redemption reserve and profits which are not available for distribution may,
for the purposes of this Article, only be applied in paying up unissued shares
to be allotted to Members credited as fully paid;

(c)                    make any
arrangements they think fit to resolve a difficulty arising in the distribution
of a capitalised reserve and in particular, without limitation, where shares or
debentures become distributable in fractions the Directors may deal with the
fractions as they think fit;

(d)                   authorise a
person to enter (on behalf of all the Members concerned) into an agreement with
the Company providing for either:

 16
 

 

(i)                        the
allotment to the Members respectively, credited as fully paid, of shares or
debentures to which they may be entitled on the capitalisation, or

(ii)                     the payment
by the Company on behalf of the Members (by the application of their respective
proportions of the reserves resolved to be capitalised) of the amounts or part
of the amounts remaining unpaid on their existing shares,

and any such agreement made under this authority being
effective and binding on all those Members; and

(e)                    generally
do all acts and things required to give effect to the resolution.

SHARE
PREMIUM ACCOUNT

124.              The Directors shall
in accordance with Section 34 of the Companies Law establish a share premium
account and shall carry to the credit of such account from time to time a sum
equal to the amount or value of the premium paid on the issue of any share.

125.              There shall be
debited to any share premium account on the redemption or purchase of a share
the difference between the nominal value of such share and the redemption or
purchase price provided always that at the discretion of the Directors such sum
may be paid out of the profits of the Company or, if permitted by Section 37 of
the Companies Law, out of capital.

NOTICES

126.              Any notice or
document may be served by the Company or by the person entitled to give notice
to any Member either personally, by facsimile or by sending it through the post
in a prepaid letter or via a recognised courier service, fees prepaid,
addressed to the Member at his address as appearing in the Register of Members.
In the case of joint holders of a share, all notices shall be given to that one
of the joint holders whose name stands first in the Register of Members in
respect of the joint holding, and notice so given shall be sufficient notice to
all the joint holders.

127.              Any Member present,
either personally or by proxy, at any meeting of the Company shall for all
purposes be deemed to have received due notice of such meeting and, where
requisite, of the purposes for which such meeting was convened.

128.              Any notice or other
document, if served by (a) post, shall be deemed to have been served five days
after the time when the letter containing the same is posted, or, (b)
facsimile, shall be deemed to have been served upon production by the
transmitting facsimile machine of a report confirming transmission of the
facsimile in full to the facsimile number of the recipient or (c) recognised
courier service, shall be deemed to have been served 48 hours after the time
when the letter containing the same is delivered to the courier service. In
proving service by post or courier service it shall be sufficient to prove that
the letter containing the notice or documents was properly addressed and duly
posted or delivered to the courier service.

129.              Any notice or
document delivered or sent by post to or left at the registered address of any
Member in accordance with the terms of these Articles shall notwithstanding
that such Member be then dead or bankrupt, and whether or not the Company has
notice of his death or bankruptcy, be deemed to have been duly served in
respect of any share registered in the name of such Member as sole or joint
holder, unless his name shall at the time of the service of the notice or
document, have been removed from the Register of Members as the holder of the
share, and such service shall for all purposes be deemed a sufficient service
of such notice or document on all persons interested (whether jointly with or
as claiming through or under him) in the share.

 17
 

 

130.              Notice of every
general meeting of the Company shall be given to:

(a)                    all Members
holding shares with the right to receive notice and who have supplied to the
Company an address for the giving of notices to them; and

(b)                   every person
entitled to a share in consequence of the death or bankruptcy of a Member, who
but for his death or bankruptcy would be entitled to receive notice of the
meeting.

No other person shall be entitled to receive notices of general
meetings.

INDEMNITY

131.              Every Director
(including for the purposes of this Article any alternate Director appointed
pursuant to the provisions of these Articles), Secretary, Assistant Secretary,
or other officer for the time being and from time to time of the Company (but
not including the Company’s auditors) and the personal representatives of the
same shall be indemnified and secured harmless out of the assets and funds of
the Company against all actions, proceedings, costs, charges, expenses, losses,
damages or liabilities incurred or sustained by him in or about the conduct of
the Company’s business or affairs or in the execution or discharge of his
duties, powers, authorities or discretions, including without prejudice to the
generality of the foregoing, any costs, expenses, losses or liabilities
incurred by him in defending (whether successfully or otherwise) any civil
proceedings concerning the Company or its affairs in any court whether in the
Cayman Islands or elsewhere.

132.              No such Director,
alternate Director, Secretary, Assistant Secretary or other officer of the
Company (but not including the Company’s auditors) shall be liable (a) for the
acts, receipts, neglects, defaults or omissions of any other such Director or
officer or agent of the Company or (b) for any loss on account of defect of
title to any property of the Company or (c) on account of the insufficiency of
any security in or upon which any money of the Company shall be invested or (d)
for any loss incurred through any bank, broker or other similar person or (e)
for any loss occasioned by any negligence, default, breach of duty, breach of
trust, error of judgement or oversight on his part or (f) for any loss, damage
or misfortune whatsoever which may happen in or arise from the execution or
discharge of the duties, powers authorities, or discretions of his office or in
relation thereto, unless the same shall happen through his own dishonesty.

NON-RECOGNITION
OF TRUSTS

133.              No person shall be
recognised by the Company as holding any share upon any trust and the Company
shall not, unless required by law, be bound by or be compelled in any way to
recognise (even when having notice thereof) any equitable, contingent or future
interest in any of its shares or any other rights in respect thereof except an
absolute right to the entirety thereof in each Member registered in the Register
of Members.

WINDING
UP

134.              If the Company shall
be wound up the liquidator may, with the sanction of an Ordinary Resolution of
the Company divide amongst the Members in specie or kind the whole or any part
of the assets of the Company (whether they shall consist of property of the
same kind or not) and may, for such purpose set such value as he deems fair
upon any property to be divided as aforesaid and may determine how such
division shall be carried out as between the Members or different classes of shares.
The liquidator may, with the like sanction, vest the whole or any part of such
assets in trustees upon such trusts for the benefit of the contributories as
the liquidator, with the like sanction shall think fit, but so that no Member
shall be compelled to accept any shares or other securities whereon there is
any liability.

 18
 

 

AMENDMENT OF ARTICLES OF
ASSOCIATION

135.              Subject to the
Companies Law and the rights attaching to the various classes of shares, the
Company may at any time and from time to time by Special Resolution alter or
amend these Articles in whole or in part.

REGISTRATION
BY WAY OF CONTINUATION

136.              The Company may by
Special Resolution resolve to be registered by way of continuation in a
jurisdiction outside the Cayman Islands or such other jurisdiction in which it
is for the time being incorporated, registered or existing. In furtherance of a
resolution adopted pursuant to this Article, the Directors may cause an
application to be made to the Registrar of Companies to deregister the Company
in the Cayman Islands or such other jurisdiction in which it is for the time
being incorporated, registered or existing and may cause all such further steps
as they consider appropriate to be taken to effect the transfer by way of
continuation of the Company.

 19
 

 

 

	
  NAME, ADDRESS AND
  DESCRIPTION

  	
   

  	
   

  
	
  OF SUBSCRIBER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Anne Todd

  	
   

  	
   

  
	
  Attorney at Law

  	
   

  	
   

  
	
  87 Mary Street

  	
   

  	
   (Sgd) Anne Todd

  
	
  George Town

  	
   

  	
   Subscriber

  
	
  Grand Cayman
  KY1-9001

  	
   

  	
   

  
	
  Cayman Islands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dated:      26
  September 2006

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   (Sgd)
  Donnamae Dixon

  	
   

  	
   

  
	
   Signature
  of Witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
  Donnamae Dixon

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
  87 Mary Street, 
  Grand Cayman

  KY1-9001

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Occupation:

  	
  Secretary

  	
   

  	
   

  

 

I, JOY A. RANKINE Asst.,
Registrar of Companies, in and for the Cayman Islands, DO HEREBY CERTIFY that this is a true copy
of the Articles of Association of Star Brazil Cayman Ltd..

 

	
  /s/ Joy A. Rankine

  	
   

  	
   

  
	
  Dated this 26th of SEPTEMBER, 2006

  	
  [SEAL]

  

 

 20Exhibit 10.11

EXHIBIT J

STOCK PURCHASE
AGREEMENT

This STOCK
PURCHASE AGREEMENT (this “Agreement”), dated as of [                    ],
2006, by and among Antônio Joaquim Peixoto de Castro Palhares and Paulo Cesar
Peixoto de Castro Palhares (collectively, the “Sellers”), Apolo Mecânica
e Estruturas S.A., a corporation (sociedade anônima/stock
corporation), organized under the laws of the Federative Republic of Brazil,
with head offices in the
city of Lorena, State of São Paulo, at Av. Dr. Léo de Affonseca Netto, 750, CEP
12600-000, duly enrolled with the CNPJ under No. 42.419.150/0001-84, herein represented by its undersigned legal
representatives, duly authorized as they solely declare (“Purchaser”),
Apolo Tubos e Equipamentos S.A., a corporation (sociedade anônima
/ stock corporation), organized under the laws of the Federative
Republic of Brazil, with head offices in the city of Rio de Janeiro, State of Rio de
Janeiro, at Av. Chrisótomo Pimentel de Oliveira, No. 2651, Pavuna, CEP
21650-000, duly enrolled with the CNPJ under No. 33.017.088/0001-03, herein represented
by its undersigned legal representatives, duly authorized as they solely
declare (“Tubos”), GPC Participacoes S.A., a corporation (sociedade anônima / stock corporation), organized under the
laws of the Federative Republic of Brazil, with head offices in the city of Rio de
Janeiro, State of Rio de Janeiro, at Rua do Passeio, No. 70, 13rd floor - part, CEP 20021-290, duly
enrolled with the CNPJ under No. 02.193.750/0001-52, herein represented by its
undersigned legal representatives, duly authorized as they solely declare (“GPC”),
and Cirrus Participacoes Ltda., a limited liability company (sociedade empresária  limitada)
organized under the laws of the Federative Republic of Brazil, with head offices
in the city of
of Rio de Janeiro, State of Rio de Janeiro, at Rua do Passeio, No. 70, 10th floor - part, CEP 20021-290, duly
enrolled with the CNPJ under No. 27.083.872/0001-17, herein represented by its
undersigned legal representatives, duly authorized as they solely declare (“Cirrus”).

W I T N E S S E T H:

WHEREAS, the
Sellers are the owners of 200 shares of common stock, with no par value (the “Shares”),
of Apolo America Pipe and Tube Corp., a Texas corporation (the “Company”),
constituting all of the issued and outstanding shares of the Company.

WHEREAS, the
Sellers desire to sell to Purchaser, and Purchaser desires to purchase from the
Sellers, on the terms set forth in this Agreement, the Shares.

WHEREAS, Tubos,
GPC and Cirrus desire to guarantee Sellers’ obligations under this Agreement.

NOW, THEREFORE, in
consideration of the promises and the mutual covenants and agreements
hereinafter contained, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

1.1           Defined Terms.

As used herein, the following
terms shall have the following meanings, unless the context otherwise requires:

 

“Actions” means
any suit, action, claim, hearing, administrative action, demand letter,
investigation by any Governmental Authority, notice of violation, or proceeding
arising out of any violation or alleged violation of any Law, breach or alleged
breach of any Contract or violation or alleged violation relating to any
Person.

“Affiliate” of a
specified person (the “Specified Person”) means any Person (a) who,
directly or indirectly, controls, is controlled by, or is under common control
with the Specified Person, (b) who, directly or indirectly, owns or controls
fifty percent (50%) or more of the Specified Person’s outstanding voting
securities or equity interests, (c) of whom the Specified Person, directly or
indirectly, owns or controls fifty percent (50%) or more of the outstanding
voting securities or equity interests or (d) who has the right, directly or
indirectly, to appoint or elect fifty percent (50%) or more of the Specified
Person’s board of directors or equivalent managing body.

“Agreement” has
the meaning set forth in the introductory paragraph hereof.

“Balance Sheet”
means the balance sheet of the Company for the year ended December 31, 2005,
and the period ended September 30, 2006, prepared in accordance with Brazilian
GAAP, attached hereto as Exhibit A.

“Balance Sheet Date”
means September 30, 2006.

“Cirrus” has the
meaning set forth in the introductory paragraph hereof.

“Claims” has the
meaning set forth in Section 2.3(c) hereof.

“Closing” has the
meaning set forth in Section 2.1 hereof.

“Company” has the
meaning set forth in the recitals hereof.

“Contract” means
any contract, agreement, instrument, commitment or other binding arrangement,
whether written or oral.

“Financial Statements”
means the financial statements of the Company for the year ended December 31,
2005 and the period ended September 30, 2006, prepared in accordance with
Brazilian GAAP.

“Governmental
Authority” means any authority, regulatory or administrative agency,
commission, department, board, bureau, agency, instrumentality or court of
Brazil, the United States of America, or any other nation or sovereign state,
any federal, bilateral, or multilateral governmental authority, any state, possession,
territory, county, district, city, or other governmental unit or subdivision,
and any branch, agency, or judicial body of any of the foregoing.

“GPC” has the
meaning set forth in the introductory paragraph hereof.

 2
 

 

“Knowledge”
is deemed to include knowledge, information and belief which a party would have
if the party had made all reasonable enquiries and, without limitation,
includes the knowledge, information and belief of its directors, officers and
employees.

“Law” means any
statute, law, treaty, ordinance, rule, regulation, instrument, directive,
decree, permit, agreement, Order or injunction of or with any Governmental
Authority, and includes, without limitation, rules or regulations of any
regulatory or self-regulatory authority compliance with which is required by
law.

“Legal Proceedings”
means any judicial, administrative or arbitral actions, suits, proceedings
(public or private), claims or governmental proceedings.

“Liability” means
any debt, loss, damage, adverse claim, adverse Action, fines, penalties,
liability or obligation (whether direct or indirect, known or unknown, asserted
or unasserted, absolute or contingent, accrued or unaccrued, matured or
unmatured, determined or determinable, disputed or undisputed, liquidated or
unliquidated, or due or to become due, and whether in contract, tort, strict
liability or otherwise), and including all costs and expenses relating thereto
(including all fees, disbursements and expenses of legal counsel, experts,
engineers and consultants and costs of investigation).

“Lien” means any
lien, encumbrance, pledge, mortgage, deed of trust, security interest, claim,
lease, charge, option, right of first refusal, easement, servitude or transfer
restriction of any kind, whether voluntarily incurred or arising by operation
of law or otherwise.

“Material Adverse
Effect” means a material adverse effect on the near-term or long-term
projected business, assets, properties, results of operations, condition
(financial or otherwise) or prospects of the Company.

“Net Equity Value”
means assets minus liabilities as derived from the Balance Sheet.

“Order” means any
writ, judgment, decree, injunction or similar order of any Governmental
Authority.

“Person” means any
individual, partnership, limited liability company, corporation, cooperative,
joint venture, trust, estate or other entity.

“Purchase Price”
has the meaning set forth in Section 2.2 hereof.

“Purchaser” has
the meaning set forth in the introductory paragraph hereof.

“Seller Guarantors”
has the meaning set forth in Section 5.1 hereof.

“Seller Obligations”
has the meaning set forth in Section 5.1 hereof.

“Sellers” has the
meaning set forth in the introductory paragraph hereof.

“Settlement Date”
has the meaning set forth in Section 2.3(b) hereof.

 3
 

 

“Shares”
has the meaning set forth in the recitals hereof.

“Specified Person”
has the meaning set forth in the definition of Affiliate.

“Tubos” has the
meaning set forth in the introductory paragraph hereof.

ARTICLE II

SALE AND PURCHASE OF THE SHARES

2.1           Sale and Purchase
of the Shares.  Upon the terms and
subject to the conditions contained herein, each Seller severally agrees to
sell the Shares owned by him and as specified on Exhibit B, and
Purchaser agrees to purchase the Shares from each Seller, for the consideration
hereinafter set forth; provided, however, that Purchaser shall not be obligated to purchase
any shares unless and until all Shares set forth on Exhibit B are
delivered concurrently to Purchaser, free and clear of all Liens.  The closing of the sale and purchase of the
Shares (the “Closing”) shall take place concurrently with the execution
and delivery of this Agreement (or at such other time as Purchaser and Seller
shall mutually agree in writing).

2.2           Purchase Price.  The total purchase price to be paid by Purchaser
to the Sellers in consideration of the Shares shall be an amount in cash equal
to $127,103 (the net equity value of the Company as of the date hereof) (the “Purchase
Price”) subject to the adjustment in Section 2.3(c), payable on a
pro rata basis to each Seller for the amount of Shares owned by such Seller, as
such amounts are set forth on Exhibit B hereto.

(a)           All payments required under this Agreement shall be made
in United States Dollars.

(b)           Each Seller shall have the right to assign its right to
receive any payments due under Section 2.3(b) to a bona fide
third party, and if Purchaser is notified of such assignment at least five (5)
Business Days prior to the Settlement Date, Purchaser shall make such payment
to the nominated assignee.

2.3           Payment of
Purchase Price; Delivery of Purchased Shares.

(a)           At the Closing, Purchaser shall pay $1,000 of the Purchase
Price to the Sellers, payable on a pro rata basis to each Seller for the amount
of Shares owned by such Seller as such amounts are set forth on Exhibit B
hereto, which shall be paid by wire transfer of immediately available funds
into the accounts designated by the Sellers. 
At the Closing, each Seller shall deliver, or cause to be delivered, to
Purchaser a stock certificate or certificates representing all of the Shares,
duly endorsed in blank or accompanied by stock transfer powers and free and
clear of all Liens.

(b)           One (1) year from the Closing (the “Settlement Date”),
Purchaser shall pay an amount equal to $126,103 (the net equity value of the
Company as of the date hereof minus $1000) of the Purchase Price, subject to
the adjustment in Section 2.3(c), to the Sellers, payable on a pro rata
basis to each Seller for the amount of Shares owned by such Seller as such

 

 4

 

amounts are
set forth on Exhibit B hereto, which shall be paid by wire transfer of
immediately available funds into the accounts designated by the Sellers.

(c)           If the amount
received in cash by the Company between the Closing and the Settlement Date in
connection with the claims described in Exhibit C (the “Claims”)
exceeds the amount paid in cash by the Company between the Closing and the
Settlement Date in connection with the Claims, Purchaser shall pay to the
Sellers, on a pro rata basis for the amount of Shares owned by each Seller as
such amounts are set forth on Exhibit B hereto, in the manner as
provided in Section 2.3(a) hereof, the amount in cash of such excess as
an adjustment to the Purchase Price.  If
the amount paid in cash by the Company between the Closing and the Settlement
Date in connection with the Claims exceeds the amount received in cash by the
Company between the Closing and the Settlement Date in connection with the
Claims, the Purchase Price will be reduced in the amount of such excess; provided, however, that
to the extent such excess exceeds $126,103 (the net equity value of the Company
as of the date hereof minus $1000), Sellers shall pay Purchaser the remainder
in cash, on a pro rata basis for the amount of Shares owned by each Sellers as
such amounts are set forth on Exhibit B hereto.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

Each of the
Sellers, severally, hereby represents and warrants to Purchaser as follows:

3.1           Authority.  Each Seller has valid title to the Shares
owned by him as set forth on Exhibit B. 
Each Seller has the full power and authority to execute, deliver and
perform this Agreement.  There is no
subscription, option, warrant, call, right, agreement or commitment relating to
the issuance, sale, repurchase or transfer by the Sellers of such Shares.  Each Seller owns good and marketable title to
the Shares set forth opposite his name on Exhibit B, free and clear of
all Liens.  The Sellers are not a party
to, and are not aware of, any voting trusts, proxies, or any other
understandings with respect to the voting of the Shares.  The Shares constitute all of the Company’s
issued and outstanding shares of common stock. 
There are no other equity interests in the Company other than the
Shares.

3.2           Execution.  This Agreement has been duly executed and
delivered by the Sellers, and constitutes the valid and binding obligation of
the Sellers, enforceable against the Sellers in accordance with its terms,
except as enforcement hereof may be limited by bankruptcy, insolvency,
moratorium or other similar laws relating to or affecting the rights of
creditors generally and subject to the fact that equitable remedies are
discretionary and may not be granted by a court of competent jurisdiction.

3.3           Consents and Approvals.  There is no requirement applicable to the
Sellers to make any filing with, or to obtain any permit, consent or approval
from, any Governmental Authority as a condition to the lawful consummation by
the Sellers of the sale of the Shares pursuant to this Agreement.

3.4           No Undisclosed Liability.  The Company does not have any Liabilities
other than those (a) specifically reflected on and fully reserved against in the
Financial Statements, (b) incurred in the ordinary course of business
consistent with past practice since the 

 5
 

 

Balance Sheet
Date or (c) that are immaterial to the Company. 
No representation or warranty of the Sellers contained in this Agreement
and no written statement made by or on behalf of the Sellers to Purchaser or
any of its Affiliates pursuant to this Agreement contains an untrue statement
of a material fact or omits to state a material fact necessary to make the
statements contained herein or therein not misleading.  There are no facts or circumstances which the
Sellers have not disclosed to Purchaser in writing which could, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect on
the Company.

3.5           Financial Statements.  The Financial Statements, including but not
limited to the Balance Sheet, are complete and correct and present fairly the
consolidated financial position, results of operations and cash flows of the
Company, as at the dates and for the periods indicated therein.  All books, records and accounts of the
Company are accurate and complete and are maintained in all material respects
in accordance with good business practice and all applicable Laws.  The Company maintains systems of internal
accounting controls sufficient to provide reasonable assurances that:
(a) transactions are executed in accordance with management’s general or
specific authorization; (b) transactions are recorded as necessary to
permit the preparation of financial statements and to maintain accountability
for assets; (c) access to assets is permitted only in accordance with
management’s general or specific authorization; and (d) the recorded
accountability for assets is compared with the actual levels at reasonable
intervals and appropriate action is taken with respect to any differences.

3.6           Net Equity Value.  As of the date hereof, the Net Equity Value
of the Company is $127,103 and the Company has at least $535,000 in cash or
cash equivalents.

3.7           Material Adverse Effect.  Except as expressly contemplated by this
Agreement, since the Balance Sheet Date (a) the Company has conducted its
business only in the ordinary course of business consistent with past practice
and (b) there has not been any event, change, occurrence or circumstance that,
individually or in the aggregate with any such events, changes, occurrences or
circumstances, has had or could reasonably be expected to have a Material
Adverse Effect on the Company.

3.8           Legal Proceeding.  Except as set forth on Schedule 3.8,
there is no Legal Proceeding pending or, to the Knowledge of the Sellers,
threatened against the Company (or to the Knowledge of the Sellers, pending or
threatened against any of the officers, directors or employees of the Company
with respect to their business activities on behalf of the Company), or to
which the Company is otherwise a party before any Governmental Authority; nor
to the Knowledge of the Sellers is there any reasonable basis for any such
Legal Proceeding.  Except as set forth on
Schedule 3.8, the Company is not subject to any effective Order that has not been fully performed, nor is
it in breach or violation of such Order. 
Except as set forth on Schedule 3.8, the Company is not engaged
in any legal action to recover monies due it or for damages sustained by
it.  There are no Legal Proceedings
pending or, to the Knowledge of the Sellers, threatened against the Company or
to which the Company is otherwise a party relating to this Agreement or the
transactions contemplated hereby.

 6
 

 

ARTICLE IV

REPRESENTATIONS
AND WARRANTIES OF PURCHASER

4.1           Authority.  Purchaser has full power and authority, and
has taken all action necessary, to execute and deliver this Agreement and to
fulfill its obligations under, and consummate the transactions contemplated by,
this Agreement.

4.2           Execution.  This Agreement has been duly executed and
delivered by Purchaser, and constitutes the valid and binding obligation of
Purchaser, enforceable against Purchaser in accordance with its terms, except
as enforcement hereof may be limited by bankruptcy, insolvency, moratorium or
other similar laws relating to or affecting the rights of creditors generally
and subject to the fact that equitable remedies are discretionary and may not
be granted by a court of competent jurisdiction.

4.3           Consents and
Approvals.  There is no requirement
applicable to Purchaser to make any filing with, or to obtain any permit,
consent or approval from, any governmental authority as a condition to the
lawful consummation by Purchaser of the purchase of the Shares pursuant to this
Agreement.

ARTICLE V

MISCELLANEOUS

5.1           Guarantee of
the Obligations of the Sellers. 
Subject to the terms, limitations and conditions set forth herein,
Tubos, GPC and Cirrus (the “Seller Guarantors”), jointly and severally,
hereby unconditionally, irrevocably and absolutely guarantee to Purchaser (and
its successors and assigns) the due and punctual performance and discharge of
all of Sellers’ obligations under this Agreement and the transactions
contemplated hereby, existing on the date hereof or hereafter of any kind or
nature whatsoever, including, without limitation, any amount that Sellers are
or may become obligated to pay pursuant to this Agreement and the transactions
contemplated hereby (collectively, the “Seller Obligations”).  The guarantee under this Section 5.1
is a guarantee of timely payment and performance of the Seller Obligations by
the Seller Guarantors as primary obligor and not merely of collection.  The Seller Guarantors unconditionally waive:
(a) any right to receive demands, protests, or other notices of any kind or
character whatsoever, as the same may pertain to Sellers, including the “benefício de ordem”, in
accordance with Art. 828 of the Brazilian Civil Code, (b) any right to
require Purchaser to proceed first against the Sellers or to pursue any other
remedy and (c) all suretyship and other defenses of every kind and nature.

5.2           Entire Agreement; Amendments and Waivers.  This Agreement represents the entire
understanding and agreement between the parties hereto with respect to the
subject matter hereof.  This Agreement
can be amended, supplemented or changed, and any provision hereof can be
waived, only by written instrument making specific reference to this Agreement
signed by the party against whom enforcement of any such amendment, supplement,
modification or waiver is sought.

5.3           Governing Law. 
This Agreement, and all claims or causes of action (whether in contract
or tort) that may be based upon, arise out of or relate to this Agreement or
the negotiation, execution or performance of this Agreement, shall be governed
by and construed in accordance with the internal laws of the State of
Texas.  Any action against any party
relating 

 7
 

 

to the foregoing shall be
brought in any federal or state court of competent jurisdiction located within
the State of Texas, and the parties hereto hereby irrevocably submit to the
non-exclusive jurisdiction of any federal or state court located within the
State of Texas over any such action.  The
parties hereby irrevocably waive, to the fullest extent permitted by applicable
law, any objection that they may now or hereafter have to the laying of venue
of any such action brought in such court or any defense of inconvenient forum
for the maintenance of such action.

5.4           Binding Effect; Assignment.  This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and
permitted assigns.  Nothing in this
Agreement shall create or be deemed to create any third party beneficiary
rights in any person or entity not a party to this Agreement except as provided
below.  No assignment of this Agreement
or of any rights or obligations hereunder may be made by Seller or Purchaser,
directly or indirectly (by operation of law or otherwise), without the prior
written consent of the other parties hereto and any attempted assignment
without the required consents shall be void.

5.5           Counterparts. 
This Agreement may be executed in multiple counterparts, each of which
will be deemed to be an original copy of this Agreement and all of which, when
taken together, will be deemed to constitute one and the same agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK.]

 8

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first written above.

	
  

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  APOLO MECANICA E ESTRUTURAS S.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SELLERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PAULO CESAR PEIXOTO DE CASTRO PALHARES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANTONIO JOAQUIM PEIXOTO DE CASTRO PALHARES

  

 

SIGNATURE
PAGE TO APOLO AMERICA STOCK PURCHASE AGREEMENT

 

 

	
  

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  APOLO TUBOS E EQUIPAMENTOS S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GPC PARTICIPACOES S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CIRRUS PARTICIPACOES LTDA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title

  

 

SIGNATURE
PAGE TO APOLO AMERICA STOCK PURCHASE AGREEMENT

 

Exhibit A

APOLO AMERICA PIPE &
TUBE CORP.

Balance Sheets

as of September 2006 and December 2005

	
   

  	
   

  	
  Dec 31, 2005

  	
   

  	
  Sep 30, 2006

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Checking/Savings

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank One

  	
   

  	
  1.065.033,08

  	
   

  	
  535.336,36

  	
   

  
	
  Total Cash

  	
   

  	
  1.065.033,08

  	
   

  	
  535.336,36

  	
   

  
	
  Total Checking/Savings

  	
   

  	
  1.065.033,08

  	
   

  	
  535.336,36

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts Receivable

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts Receivable

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts Receivable - JD Fields

  	
   

  	
  999.855,76

  	
   

  	
  208.042,45

  	
   

  
	
  Accounts Receivable - LSS

  	
   

  	
  —

  	
   

  	
  3.777.409,08

  	
   

  
	
  Accounts Rec’v - Credit memos

  	
   

  	
  (103.673,15

  	
  )

  	
  —

  	
   

  
	
  Accounts Receivable - AST

  	
   

  	
  204,03

  	
   

  	
  204,03

  	
   

  
	
  Accounts Receivable - Fed Tax

  	
   

  	
  40.496,00

  	
   

  	
  172.496,00

  	
   

  
	
  Total Accounts Receivable

  	
   

  	
  936.882,64

  	
   

  	
  4.158.151,56

  	
   

  
	
  Total Accounts Receivable

  	
   

  	
  936.882,64

  	
   

  	
  4.158.151,56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Current Assets

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advance payment

  	
   

  	
  —

  	
   

  	
  20.000,00

  	
   

  
	
  Inventories

  	
   

  	
  6.607.557,68

  	
   

  	
  753.261,19

  	
   

  
	
  Judicial Deposit

  	
   

  	
  —

  	
   

  	
  461.532,37

  	
   

  
	
  Total Other Current Assets

  	
   

  	
  6.607.557,68

  	
   

  	
  1.234.793,56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Current Assets

  	
   

  	
  8.609.473,40

  	
   

  	
  5.928.281,48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  ASSETS

  	
   

  	
  8.609.473,40

  	
   

  	
  5.928.281,48

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES
  & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acounts Payable

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts Payable - Brazil

  	
   

  	
  7.247.736,68

  	
   

  	
  2.908.218,61

  	
   

  
	
  Accounts Payable - BR Disputed

  	
   

  	
  (52.121,50

  	
  )

  	
  (52.121,50

  	
  )

  
	
  Accounts Payable - Rio Negro

  	
   

  	
  1.218.955,50

  	
   

  	
  2.240.217,04

  	
   

  
	
  Accounts Payable - Surveyor

  	
   

  	
  —

  	
   

  	
  4.544,00

  	
   

  
	
  Accounts Payable - Post.Shipping

  	
   

  	
  27.716,05

  	
   

  	
  1.645,87

  	
   

  
	
  Accounts Payable - Profess. fees

  	
   

  	
  10.077,46

  	
   

  	
  11.602,65

  	
   

  
	
  Total Accounts Payable

  	
   

  	
  8.452.364,19

  	
   

  	
  5.114.106,67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other Current Liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIT Payable

  	
   

  	
  —

  	
   

  	
  (2.503,08

  	
  )

  
	
  Accrued Expenses

  	
   

  	
  15.822,00

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Other Current Liabilities

  	
   

  	
  15.822,00

  	
   

  	
  (2.503,08

  	
  )

  
	
  Total Current Liabilities

  	
   

  	
  8.468.186,19

  	
   

  	
  5.111.603,59

  	
   

  
	
  Total Liabilities

  	
   

  	
  8.468.186,19

  	
   

  	
  5.111.603,59

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JD Fields Disputed

  	
   

  	
   

  	
   

  	
  208.042,45

  	
   

  
	
  Contingency Provision

  	
   

  	
   

  	
   

  	
  481.532,37

  	
   

  
	
  Non Current Liabilities

  	
   

  	
  —

  	
   

  	
  689.574,82

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital Stock

  	
   

  	
  1.000,00

  	
   

  	
  1.000,00

  	
   

  
	
  Retained Earnings

  	
   

  	
  52.902,74

  	
   

  	
  140.287,21

  	
   

  
	
  Net Income

  	
   

  	
  87.384,47

  	
   

  	
  (14.184,13

  	
  )

  
	
  Total Equity

  	
   

  	
  141.287,21

  	
   

  	
  127.103,07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL LIABILITIES &
  EQUITY

  	
   

  	
  8.609.473,40

  	
   

  	
  5.928.281,48

  	
   

  

 

 

 

 

Exhibit B

	
  Seller

  	
   

  	
  Shares

  	
   

  	
  Percentage Ownership

  	
   

  
	
  PAULO CESAR PEIXOTO DE
  CASTRO PALHARES

  	
   

  	
  100

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ANTONIO JOAQUIM PEIXOTO DE CASTRO PALHARES

  	
   

  	
  100

  	
   

  	
  50

  	
  %

  

 

 

 

 

Exhibit C

1)             Escrow for payment
of damages resulting from the accident involving the ship MARILLE BOLTEN, in
the amount of US$481,532.37.

 

2)             Retention of a
US$208,000 payment owed by J.D. Fields to Apolo America on account of alleged
defects of Tubular Products purchased by J.D. Fields for resale to his clients.

 

 

Schedule 3.8

Disputes with J.D. FIELDS (Jerry Fields)

(a)           Retention
of US$ 208,000 payment to Apolo America on account of alleged defects of
Tubular Products purchased by Jerry Fields for resale to his clients;

(b)           Threat
of indemnification suit against the Company, Tubos and Apolo America on account
of alleged damages arising out of the exclusivity agreement for the North
American market signed by and between Tubos and Lone Star Steel.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]