Document:

Exhibit 4.3

EXPORT PREPAYMENT AGREEMENT No G-0852/05

THIS EXPORT PREPAYMENT AGREEMENT (the “Agreement”) is made as of March 29, 2005 by and between:

VOTORANTIM CELULOSE E PAPEL S.A. (“VCP”), a company duly organized and validly existing under the laws of the Federative Republic of Brazil, having its principal place of business located at Alameda Santos, 1357 – 7o, São Paulo - SP, enrolled with the CNPJ/MF under number 60.643.228/0001- 21 (the “Borrower”); and

ABN AMRO Bank N.V., a financial institution duly organized and existing under the laws of The Netherlands, with its place of business in the city of Amsterdam (the “Bank”);

W I T N E S S E T H:

WHEREAS, the Borrower has, or will, enter into one or more export agreements, the performance of which shall be subject to the terms and conditions of this Agreement (such agreements being defined herein individually, as an “Export Agreement” and collectively, the “Export Agreements”), with the companies set forth on the schedules attached hereto (individually, an “Importer” and collectively, the “Importers”) and made a part hereof, entitled “Exhibit I” from time to time provided by the Borrower to the Bank, pursuant to which the Borrower will export goods, 

WHEREAS, the Borrower’s sales of goods under the Export Agreements will be made through one or more shipments with the aggregate purchase price for such Goods being at least the amount set forth in the Exhibit I (the purchase price to be paid for any shipment of Goods by each Importer concerned being referred to herein as the “Purchase Price” for that shipment, and the aggregate of those Purchase Prices being referred to herein as the “Aggregate Purchase Price”);

WHEREAS, in connection with these export transactions, the Borrower has requested the Bank to establish a facility in the aggregate principal amount of up to US$ 50,000,00.00 (fifty million United States Dollars) (the “Facility”) to be disbursed in one ore more advances, such advance or advances to constitute an “anticipated payment of future exports” in accordance with Circular 2231, dated September 25, 1992, as modified from that date and with the electronic registration of the relevant terms and conditions of this Agreement through Module Registry Financial Transaction(Módulo Registro de Operação Financeira – ROF) of the Data System of the Central Bank of Brazil – SISBACEN, under number TA331696 (such advance or advance being referred to herein as the “Advance”); and

	
  
 
  	
  

  	
  
1
  

WHEREAS, in order to satisfy its obligations hereunder, the Borrower(s shall instruct the Importer(s) concerned, upon the negotiation of the shipping documents relating to a shipment of Goods under each Export Agreement, to make payment thereof by forwarding the Purchase Price for the shipment to the Bank in accordance with the terms of this Agreement; 

NOW THEREFORE, in consideration of the premises set forth herein, the Bank and the Borrower (referred to collectively herein as the “Parties”) hereby agree as follows:

1.      THE ADVANCE

1.1.      The Bank, upon the terms and subject to the conditions hereof, agrees to make the Facility available to the Borrower, such Facility to be disbursed in one or more Advances within the period of 10 days from the date hereof. To effect each Advance, the Bank shall forward the amount thereof to that account at ABN AMRO Bank N.V., New York Branch, CHIPS 0958, account number 673.001.211.441 designated “Banco ABN AMRO Real S.A.- Brazil” for the account of the Borrower. The Borrower shall deliver to the Bank promissory notes substantially in the form of Exhibit II hereto (the “Notes”) executed by the Borrower on each date of disbursement of each Advance (the “Disbursement Date”) made under this Agreement.

1.2.      The purpose of the Advance or the Advances is to provide financing to the Borrower in accordance with the applicable regulations of the Central Bank of Brazil.

1.3      The Borrower shall advise the Bank of those Export Agreements which the Borrower intends to allocate and make subject to this Agreement in existence on the date hereof and shall thereafter advise the Bank following the date hereof of any further agreements it wishes to allocate to this Agreement. The Borrower may request the authorization of the Bank to enter into Export Agreements with importers other than the Importer(s). If the Bank shall approve such designation in writing each such substitute importer shall also be deemed to be an “Importer” hereunder.

2.      REPAYMENT.

2.1.      The Parties hereby agree that, without limiting the liability of the Borrower hereunder and under the Notes, the primary mechanism for the repayment of each Advance to the Bank shall be the delivery to the Bank of the Purchase Price for each shipment of Goods made by the Borrower pursuant to each Export Agreement. The Borrower hereby unconditionally and irrevocably transfers assigns and sets over to the Bank all of its right, title and interest to receive the payment of all amounts due from each Importer under each of the Export Agreements. For purposes of this Agreement, each shipment of Goods, which is made pursuant to an Export Agreement shall be referred to as a “Covered Shipment.”

	
  
 
  	
  

  	
  
2
  

2.2.      As to each Covered Shipment, the Parties agree to proceed as follows:

(a)      In order for a shipment of Goods to become a Covered Shipment, such shipment must occur during the shipment period beginning on the day which is not later than 6 months after the first Disbursement Date and ending on the day which is not later than 1 month after the first Disbursement Date the “Eligible Shipment Period”). Upon making any shipment of Goods under each Export Agreement during the Eligible Shipment Period, the Borrower shall notify Banco ABN AMRO Real S.A. in São Paulo (the “Exchange Bank”) that such shipment shall constitute a Covered Shipment hereunder, and shall provide to the Exchange Bank the following information and documentation with respect to such shipment: (x) the number of the “despacho aduaneiro” and the number of the “registro de exportação”; (y) copies of the shipping documents; and (z) any draft or other payment document to be
executed by the Importer concerned. All shipping documents shall be delivered to the Bank within 15 days after the Date of Shipment. For purpose of this Agreement, the term “Date of Shipment” shall be the date of shipment, which appears on the relevant shipping, documents for a Covered Shipment.

(b)      The Borrower shall irrevocably instruct each Importer receiving a Covered Shipment to direct payment to the Bank, by crediting the collection account No. 44.84.11.490 at ABN AMRO Bank N.V., Amsterdam, in United States Dollars, free and clear of set-off or counterclaim (the “Collection Account”), in the name of the Bank, that amount of United States Dollars corresponding to the Purchase Price for each Covered Shipment, according to Exhibit III. Any remaining amount of the Collection Account shall be released by the Bank to the Borrower.

(c)      Provided that such payment is received in the Collection Account not later than the relevant Repayment Date (as hereinafter defined), the Bank shall, on the Repayment Date, credit such payment against the Advance.

2.3.      The Borrower hereby promises to repay the Advance or Advances in 9 (nine) equal installments on the respective dates (each one a “Repayment Date”), as set forth below:

	
  
Installment No.
  	
  
 
  	
  
Repayment Date
  	
  
 
  	
  
Principal Amount
  
	
  

  	
  
 
  	
  

  	
  
 
  	
  

  
	
  1
  	
  
     
  	
  
    03/03/2010
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    2
  	
  
     
  	
  
    06/01/2010
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    3
  	
  
     
  	
  
    08/30/2010
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    4
  	
  
     
  	
  
    11/29/2010
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    5
  	
  
     
  	
  
    02/28/2011
  	
  
     
  	
  
    US$5,555,555.55
  
	
  6
  	
  
     
  	
  
    05/27/2011
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    7
  	
  
     
  	
  
    08/25/2011
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    8
  	
  
     
  	
  
    11/23/2011
  	
  
     
  	
  
    US$5,555,555.55
  
	
  
    9
  	
  
     
  	
  
    02/21/2012
  	
  
     
  	
  
    US$5,555,555.55
  

2.4.      The Borrower may prepay all or a portion of any Advance at any time or from time to time, without penalty, costs or additional expenses, which prepayment shall in each case, be made together with accrued and unpaid interest on the principal amount, provided;

	
  
 
  	
  

  	
  
3
  

	
  
(a)
  	
  
the Borrower   shall inform the Bank, in writing, three days prior to such prepayment, and   such notice of prepayment shall specify the amount of the Advance being   prepaid and each partial prepayment shall be applied to the outstanding   Advances in the inverse order of maturity;
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
such prepayment   is to be made on any Interest Payment Date;
  
	
  
 
  	
  
 
  
	
  (c)
  	
  
the Borrower   has obtained all necessary and advisable governmental consents (including   approval from the Central Bank of Brazil) required for purposes of making   such prepayment; and
  
	
  
 
  	
  
 
  
	
  
d) 
  	
  
the Borrower   shall be responsible for any and all other reasonable penalty or costs   incurred by the Bank by virtue of such prepayment it being understood that if   the Borrower is in compliance with (a-c) there shall be no additional   penalty, costs or additional expenses.
  

2.5.      The Borrower hereby agrees that the payment mechanism herein described shall in no respect limit the liability of the Borrower for all principal of and interest on the Advances and all other amounts due and owing hereunder and under the Notes and such payment mechanism shall in no respect limit the ability of the Bank to demand payment under the Notes and this Agreement on the Repayment Date. If, as of any Repayment Date, any of the principal amount of the Advances and/or any interest thereon shall remain outstanding and payment therefore shall not have been received through the payment mechanism described herein, or if at any time any such payment of such principal or interest shall be rescinded or the Bank shall be required to refund or disgorge any such payment, the Bank in its sole discretion may require that the Borrower make payment of such amounts in United States Dollars directly to the Bank. Such payments shall be made
to the Bank to the Collection Account.

3.      INTEREST.

3.1.      “Interest Period” shall mean in relation to each Advance, (a) up to the first Repayment Date, each time period of 6 (six) months commencing on and including the Disbursement Date corresponding to such Advance; and (b) thereafter, each time period of 3 (three) months commencing on and including the First Repayment Date and ending on but excluding the date which is the last Repayment Date. 

3.2.      “Interest Rate” for each Interest Period shall mean LIBOR plus the applicable Margin.

3.3.      “Margin” shall mean 1.5000 p.a. (one point five percent per annum).

3.4.      “LIBOR” shall mean, for any Interest Period, an interest rate per annum determined on the basis of the London interbank offered rate for deposits in Dollars for a period of time comparable to the relevant Interest Period, shown on the display page designated British Bankers Association Interest Settlement Rates, “LIBOR 01” Page, on the Reuters screen or such other page as may replace that page in that service, at approximately 11:00 a.m., London time, 2 (two) Business Days prior to the first day of such Interest Period. 

	
  
 
  	
  

  	
  
4
  

In the event that such rate does not appear on such LIBOR 01 Reuters screen page, or such other page as may replace that page in that service, then LIBOR shall be the arithmetic mean (expressed as an annual rate and rounded upwards, if necessary, to the nearest 1/16 of 1%) of the rates quoted at approximately 11:00 a.m. London time by 3 (three) leading banks, chosen by the Bank and agreed by the parties hereto as the rate at which deposits in Dollars are offered to such Banks by prime banks, in the London interbank market for a period of time comparable to the relevant Interest Period, at approximately 11:00 a.m. 2 (two) Business Days prior to the first day of such Interest Period. If the Borrower does not agree with the LIBOR quoted by the Bank, the Bank shall have no obligation to make the disbursement related to the Advance or if the Advance has already been made, the rate will be reasonably determined by the Bank.

3.5.      Interest shall be calculated on the basis of a year of 360 days for the actual number of days elapsed (including the first day, but excluding the last day). Accrued interest shall be due and payable in arrears upon any payment of the Advance and on each applicable Interest Payment Date by crediting the Collection Account. For that purpose, the Borrower shall irrevocably instruct the Importers receiving a Covered Shipment to effect payments to the Collection Account to cover the interest amount due to the Lender. Such amounts shall be credited by the Importers in amount sufficient to pay the interest due at least 90 (ninety) days before each Interest Payment Date. Any remaining amount of the Collection Account shall be released by the Bank to the Borrower. “Interest Payment Date” shall mean the last day of each Interest Period.

3.6.      Interest on the principal amount of any Advance made hereunder or under the Notes not paid when due any other amount due and payable under this Prepayment Agreement that is past due (whether at any Repayment Date, by acceleration or otherwise) shall, to the extent permitted by law, bear interest from the date such amount is due until such amount is paid in full at the per annum rate that is the then applicable Interest Rate plus 1%(one percent).

4.      PAYMENTS AND COMPUTATIONS.

4.1.      The Borrower shall make, and shall instruct each Importer to make, each payment hereunder and under any instrument delivered hereunder not later than 12:00 noon (New York City time) on the day when due in lawful money of the United States (in freely transferable and in immediately available United States dollars) to the Bank, to the Collection Account. 4.2. All computations of interest shall be made by the Bank on the basis of a year of 360 days for the actual number of days occurring in the period for which such interest is payable.

4.3.      Whenever any payment to be made hereunder or under any instrument delivered hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day (subject to the definition of Interest Period as above provided), and such extension of time shall, in such case, be included in the computation of payment of interest; provided, however, that if such extension would cause such payment to be made in a new calendar month, such payment shall be made on the next preceding Business Day. For the purposes of this Agreement, Business Day means a day on which banks are open for business in the city of New York and London.

	
  
 
  	
  

  	
  
5
  

5.      CONDITIONS PRECEDENT TO THE ADVANCE.

5.1.      The obligation of the Bank to make the Advance is subject to the conditions precedent that it shall have received on or before the first date of disbursement the following documents, each dated on or before such day, in form and substance satisfactory to the Bank:

	
  
 
  	
  
(i)
  	
  
certified   copies of the resolutions of the board of directors or equivalent body of the   Borrower approving this Agreement and the Notes, and of all documents   evidencing other necessary corporate or other action;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)
  	
  
Certificates   of the Secretary or an Assistant Secretary or other appropriate officer of   the Borrower certifying the names and true signatures of the officers of the   Borrower duly authorized to sign this Agreement and the other documents to be   delivered by it hereunder;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iii)
  	
  
an evidence   of the electronic registration (Registro   de Operação Financeira – ROF) of the Data System of the Central   Bank of Brazi– SISBACEN under number TA331696;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv)
  	
  
a Note   evidencing the principal amount of the Advance plus accrued interest thereon;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(v)
  	
  
any all   guarantees or security documents duly executed in manner satisfactory to the Bank;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vi)
  	
  
three   Business Days’ prior written irrevocable notice of borrowing, substantially   in the form of Exhibit IV hereto.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vii)
  	
  
such other   approvals, opinions, or documents as the Bank may reasonably request.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(viii)
  	
  
the   representations and warranties contained in Section 9 of this Agreement are   true and correct on and as of the date of such Advance as though made on such   date, and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ix)
  	
  
no event has   occurred and is continuing, or would result from the  Advance, which constitutes an Event of   Default or would constitute an Event of Default but for the requirement that   notice be given or time elapse or both.
  

5.2.      The obligation of the Bank to make further disbursements is subject to the conditions precedent that it shall have received on or before the date of disbursement the following documents, each dated on or before such day, in form and substance satisfactory to the Bank: 

	
  
 
  	
  
(i)
  	
  
a Note   evidencing the principal amount of the Advance plus accrued interest thereon;
  

	
  
 
  	
  

  	
  
6
  

	
  
 
  	
  
(ii)
  	
  
three   Business Days’ prior written irrevocable notice of borrowing; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iii)
  	
  
such other   approvals, opinions, or documents as the Bank may reasonably request.,
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv)
  	
  
the   representations and warranties contained in Section 9 of this Agreement are   true and correct on and as of the date of such Advance as though made on such   date, and
  

6.      TAXES

6.1.      All payments to be made by the Borrower to the Bank hereunder shall be made free and clear of, and without deduction for, or on account of, any present or future taxes, levies, duties, imposts, deductions, charges or withholdings and all liabilities with respect thereto, excluding taxes imposed on the overall net income of the Bank (all such non-excluded taxes, levies, etc. to be referred to generally as “Taxes”) tax unless the Borrower is required to make such a payment subject to the deduction or withholding of Taxes, in which case the sum payable by the Borrower in respect of which such deduction or withholding is required to be made shall be increased to the extent necessary to ensure that, after the making of the required deduction or withholding, the Bank receives and retains (free from any liability in respect of any such deduction or withholding) a net sum equal to the sum which it would have received and
so retained had no such deduction or withholding of taxes been made or required to be made. The Borrower shall deliver to the Bank within thirty (30) days after payment, an original receipt evidencing payment of any Taxes required to be withheld or paid.

6.2.      Without prejudice to the provisions of Section 6.1, if the Bank is required to make any payment on account of any Taxes, the Borrower shall, upon demand of the Bank, promptly indemnify the Bank against such payment or liability, together with any interest, penalties and expenses payable or incurred in connection therewith.

7.       INCREASED COSTS. If by reason of (i) any change in law, decree, rule or regulation or in the interpretation or administration thereof and/or (ii) compliance with any request from or requirement of any central bank or other fiscal, monetary or other authority (including, without limitation, a request or requirement which affects the manner in which the Bank is required to or does maintain capital resources having regard to the Bank’s obligations hereunder and to amounts owing to it hereunder) and/or (iii) no disbursements under this Agreement be made by any reason whatsoever:

	
  
 
  	
  
(a)
  	
  
the Bank   incurs a cost as a result of the Bank’s having entered into and/or performing   its obligations under this Agreement and/or assuming or maintaining a   commitment under this Agreement;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
the Bank   becomes liable to make any payment on account of any Taxes calculated by   reference to the amount of the Advance and/or to any sum received or   receivable by it hereunder;
  

	
  
 
  	
  

  	
  
7
  

	
  
 
  	
  
(c)
  	
  
then the   Borrower shall, from time to time on demand of the Bank, promptly pay to the   Bank amounts sufficient to indemnify it against, as the case may be, but in   any event without duplication, such cost or such liability.
  

8.       ILLEGALITY. If, after the date of this Prepayment Agreement, the introduction of, or any change in, any applicable law, rule or regulation or in the interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof or compliance by the Bank with any request or directive (whether or not having the force of law) of any such authority shall make it unlawful or impossible for the Bank to make, maintain or fund the Advance, and after the Bank has made reasonable efforts to make, maintain or fund the Advance using other alternatives such as lending offices in other jurisdictions, the Bank forthwith shall so notify the Borrower in writing, whereupon the obligation of the Bank to make or maintain the Advance shall be terminated. Upon receipt of such notice, the Borrower shall prepay in full the then outstanding principal amount of the Advance, together with
accrued interest thereon, on the shorter of either (a) the last day of Interest Period applicable thereto or (b) within sixty-six (60) Business Days, provided that the Borrower has obtained all necessary and advisable required governmental consents (including approval from the Central Bank of Brazil).

9.      REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower hereby represents and warrants to the Bank as follows:

	
  
 
  	
  
(a)
  	
  
It is a   company duly organized, validly existing and in good standing under the laws   of Brazil and duly registered with the “Departamento   do Comércio Exterior - Decex”, as eligible to receive the Advance.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
its   execution, delivery and performance of this Agreement and all documents to be   delivered by it hereunder are within its corporate powers, have been duly   authorized by all necessary corporate action, and do not contravene (i) its   charter or by-laws or (ii) any law or any contractual restriction binding on   or affecting it.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(c)
  	
  
No   authorization or approval or other action by, and no notice to or filing   with, any governmental authority or regulatory body is required for the due   execution, delivery and performance thereby of this Agreement (except that   the Borrower shall have to file an exchange contract application through a   bank authorized to operate in the exchange market in Brazil whenever it shall   pay interest to the Bank hereunder).
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
This   Agreement is, and each document to be delivered by it hereunder or in connection   herewith will be, its legal, valid and binding obligation, enforceable   against it in accordance with the terms thereof, and such obligation ranks at   least pari passu in all   respects with all other of its obligations.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
It has   furnished to the Bank its consolidated balance sheet and statement of income,   stockholders’ equity and cash flows as of and for the fiscal year ended 2003.   Such consolidated financial statements are complete and correct, and fairly   present the Borrower’s consolidated financial condition and the results of   its operations and cash flows as of such dates and for such periods in   accordance with Brazilian GAAP and since December 31, 2004, there has been no   development or event that has had or could reasonably be expected to have a   Material Adverse Effect.
  

	
  
 
  	
  

  	
  
8
  

	
  
 
  	
  
(f)
  	
  
There is no   pending or threatened action or proceeding affecting it or any of its   subsidiaries or Affiliates before any court, governmental agency or   arbitrator, which may materially adversely affect its consolidated financial   condition or operations.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(g)
  	
  
Neither it   or any of its property has any immunity from jurisdiction of any court or   from any legal process (whether through service or notice, attachment prior   to judgment, attachment in aid of execution, or otherwise) under the laws of   the jurisdiction of its organization.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(h)
  	
  
There is no   tax, levy, impost, duty, deduction, charge or withholding imposed by Brazil   or any political subdivision thereof either (i) on or by virtue of the   execution or delivery of this Agreement, the Notes or any other document to   be furnished hereunder or (ii) on any payment to be made pursuant to this   Agreement or the Notes. To the extent that in the future any Brazilian statutory   withholding tax on each payment of interest hereunder is required to be paid,   such tax shall be borne by the Borrower.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(i)
  	
  
In any   proceedings taken in Brazil in relation to this Agreement or the Notes the   Borrower will not be entitled to claim for itself, or any of its assets,   immunity from suit, execution, attachment or other legal process.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(j)
  	
  
In any   proceedings taken in Brazil in relation to this Agreement or the Notes, the   choice of the law of the State of New York as the governing law of this   Agreement and the Notes and any judgment obtained in the Courts of New York   will be recognized and enforced.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(k)
  	
  
All acts,   conditions and things required to be done, fulfilled and performed in order   (a) to enable the Borrower to lawfully to enter into, exercise its rights   under and perform and comply with the obligations expressed to be assumed by   the Borrower in this Agreement and Notes, (b) to ensure that the obligations   expressed to be assumed by it in this Agreement and the Notes are legal,   valid and binding, (except that a certified translation into Portuguese of   the Agreement and the Notes is required to be filed with a competent Registry   of Deeds in Brazil in order to ensure the legality, validity and binding   effect of this Agreement and the Notes) and (c) to make this Agreement and   the Notes admissible in evidence in Brazil, have been done, fulfilled and   performed.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(l)
  	
  
Under the   laws of Brazil in force at the date hereof, it is not necessary that this   Agreement or the Notes be filed, recorded or enrolled with any court or any   other authority in Brazil or that any stamp, registration or similar tax be   paid on or in relation to the Agreement or the Notes; except that a certified   translation into Portuguese of this Agreement and the Notes is required to be   filed with a competent Registry of Deeds in Brazil in order to ensure the   legality, validity and binding effect of this Agreement and the Notes.
  

	
  
 
  	
  
  	
  
9
  

10.     FINANCIAL INFORMATION.

10.1.      So long as any amount shall remain owing to the Bank under this Agreement or Notes, the Borrower shall from time to time on the request of the Bank, furnish the Bank with such information about the business and consolidated financial condition of the Borrower as the Bank may reasonably request.

10.2.      So long as any amount shall remain owing to the Bank under this Agreement or the Notes, the Borrower will ensure that:

	
  
 
  	
  
(i)
  	
  
each set of   consolidated financial statements delivered by it pursuant to this Agreement   is prepared on the same basis as was used in the preparation of the   consolidated financial statements originally presented to the Bank and in   accordance with accounting principles generally accepted in Brazil and   consistently applied (subject to normal year-end audit adjustments, in the   case of the financial statements required to be delivered pursuant to Section   10.2(ii) above); and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)
  	
  
each set of   consolidated financial statements delivered by it pursuant to this Agreement   is certified by a duly authorized officer of the Borrower as fairly and   accurately presenting the consolidated financial condition of the Borrower as   at the end of the period to which those consolidated financial statements   relate and of the results of its operations during such period.
  

11.      COVENANTS. So long as any amount shall remain owing to the Bank under this Agreement or the Notes, the Borrower shall:

	
  
 
  	
  
(i)
  	
  
obtain,   comply with the terms of and do all that is necessary to maintain in full   force and effect all authorizations, approvals, licenses and consents   required in or by the laws and regulations of Brazil to enable it lawfully to   enter into and perform its obligations under this Agreement, the Notes and   the Export Agreements or to ensure the legality, validity, enforceability or   admissibility thereof in evidence in Brazil;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)
  	
  
promptly   upon receipt of each Advance, enter into and perform its obligations under   the currency exchange agreement, on terms and subject to conditions approved by   the Bank, with the Exchange Bank pursuant to which the Borrower sells the   dollars represented by the Advance to, and receives Brazilian currency in   respect thereof from, the Exchange Bank and procure that such currency   exchange agreement is promptly registered as a “Pagamento Antecipado de Exportação” with the Central Bank   of Brazil;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(iii)
  	
  
allocate   Export Agreements to this Agreement having an Aggregate Purchase Price and   such shipment and payment dates as will ensure that, and procure the payment of   the proceeds thereunder to the Bank so that, on each Repayment Date and on   each Interest Payment Date there are funds standing to the credit of the   Borrower at least equal to the amount of each Advance plus accrued interest   due for payment by the Borrower on the respective Repayment Date;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv)
  	
  
For Export   Agreements allocated to this Agreement, issue to each Importer an irrevocable   direction to pay the Purchase Price under each Export Agreement to Bank;
  

	
  
 
  	
  

  	
  
10
  

	
  
 
  	
  
(v)
  	
  
deliver to   the Exchange Bank all export documentation relating to each Export Agreement;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(vi)
  	
  
perform all   of its obligations under each Export Agreement; and ensure that, at all   times, the claims of the Bank hereunder and under the Notes rank, at least pari passu with the claims of all of its   unsecured creditors, except those whose claims are preferred solely by any   bankruptcy, insolvency, liquidation or other laws of similar application.
  

12.      EVENTS OF DEFAULT. If any of the following events (each an “Event of Default”) shall occur and be continuing:

	
   
  	
  
(a)
  	
  
The Borrower   shall fail to pay any sum due under this Agreement or under the Notes when   and as due, shall fail to provide instructions to the Importers as required   pursuant to this Agreement or shall fail to observe or perform any of its   other covenants or obligations hereunder or under the Notes; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The Borrower   shall fail to export Covered Shipments with an Aggregate Purchase Price of at   least the amount of each Advance by the end of the shipment periods set forth   in Exhibit I hereto; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Any   representation or warranty made by the Borrower under or in connection with   this Agreement or the Notes shall prove to have been incorrect when made; or
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(d)
  	
  
Any   proceeding shall be instituted by or against the Borrower or any of its   subsidiaries seeking to adjudicate it as bankrupt or insolvent, or seeking   liquidation, winding up, reorganization, arrangement, adjustment, relief or   composition of it or its debts under any law relating to bankruptcy,   insolvency or reorganization or relief of debtors, or seeking the entry of an   order for relief or the appointment of a receiver, trustee, or other similar   official for it or for any substantial part of its property; or the Borrower   or any of its subsidiaries shall take any corporate action to authorize any   of the actions set forth above in this subsection (d); or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
Any default   or event of default shall occur or be continuing under any agreement,   instrument or other document of the Borrower evidencing Indebtedness (as   defined below) and such default or event of default may allow the Bank to   cause the acceleration of such Indebtedness and shall not have been waived.   For purposes of this paragraph (e) “Indebtedness” shall mean any indebtedness   for borrowed money which is payable or may be paid (i) in any currency and   (ii) to any person resident or having its principal place of business in any   country;
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(f)
  	
  
The Borrower   ceases to be involved in (i) the business of producing pulp and paper and/or   other related products and (ii) other lines of business that are related or   incidental to the business described under clause (i) of this definition.
  

	
  
 
  	
  

  	
  
11
  

	
  
 
  	
  
(g)
  	
  
there shall   occur any change in the ownership of the Borrower from that existing on the   date hereof;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(h)
  	
  
The Borrower   repudiates any of its obligations under this Agreement or the Notes or it   becomes unlawful for the Borrower to perform any of its obligations or   covenants under this Agreement or the Notes or any governmental approval,   permit, registration or authorization necessary for the Borrower to perform   such obligations or covenants shall fail to be obtained or shall cease to be   in full force and effect;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(i)
  	
  
Any Importer   shall fail to remit amounts due under an Export Agreement to the Bank or any   allocated Export Agreement shall cease to be in full force and effect or in   default which results in the Advance or accrued interest not being repaid   after the applicable grace period ; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(j)
  	
  
An   extraordinary event shall occur, including, without limitation, any material   adverse change in the business or financial condition or operations of the   Borrower, which in the judgment of the Bank indicates that the Borrower may   not, or may be unable to, perform or observe, in the normal course, its   obligations under this Agreement and the Notes; then, and in such event, the   Bank may, by notice to the Borrower, (i) declare its obligation to make the   Advance terminated, whereupon the same shall forthwith terminate, and/or (ii)   declare, upon notice to the Borrower, the Advances, the Notes, all interest   thereon and all other amounts payable under this Agreement to be forthwith   due and payable, whereupon the Borrower shall be obligated forthwith to make   payment of the Advances, the Notes, all such interest and all such other   amounts without presentment, demand, protest or further notice of any kind,   all of which are hereby expressly waived
by the Borrower.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(k)
  	
  
The Debt   Service Coverage Ratio as of the end of any fiscal quarter of VCP shall be   less than 1.30 (it being understood that such ratio shall not be calculated   until the delivery of the consolidated financial statements referred to in   Section 10, but that any related Event of Default shall be considered to have   begun as of the last day of the relevant fiscal quarter);
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(l)
  	
  
The Net Debt   to EBITDA Ratio as of the end of any fiscal semester of VCP shall exceed 3.00   (it being understood that such ratio shall not be calculated until the   delivery of the consolidated financial statements referred to in Section 10,   but that any related Event of Default shall be considered to have begun as of   the last day of the relevant fiscal semester);
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(m)
  	
  
The Debt to   Total Capitalization Ratio as of the end of any fiscal semester of VCP shall   exceed 0.70 (it being understood that such ratio shall not be calculated   until the delivery of the consolidated financial statements referred to in   Section 10, but that any related Event of Default shall be considered to have   begun as of the last day of the relevant fiscal semester);
  

For the purposes herein, 

	
  
 
  	
  

  	
  
12
  

“Affiliate” means any person that, directly or indirectly, is in control of, is controlled by or, is under common control of the Borrower;

 “Brazilian GAAP” means the accounting principles prescribed by Brazilian corporate law (Lei de Sociedades Anônimas);

“Capital Lease Obligations” means the obligations of the Borrower to pay rent o rother amounts under any lease of real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on the balance sheet of the Borrower;

 “Cash Equivalents” means any of the following: (a) readily marketable direct obligations of the government of the United States of America or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the government of the United States, (b)insured certificates of deposit of or time deposits with the Lenders or a member of the Federal Reserve System, which issues (or the parent of which issues) commercial paper rated as described in clause (c), is organized under the laws of the United States of America or any State (or the District of Columbia) thereof and has combined capital and surplus of at least US$1,000,000,000, (c) commercial paper in an aggregate amount of no more than US$10,000,000 per issuer outstanding at any time, issued by any corporation organized under the laws of any State (or the District of Columbia) of the United States of America and rated at least  “Prime-1”
(or the then equivalent grade) by Moody’s and “A-1” (or the then equivalent grade) by S&P, or (d) other investments considered as cash equivalents under Brazilian GAAP; 

“Debt Service Coverage Ratio” means, as of the last day of any fiscal quarter of VCP, the ratio (expressed as a decimal) of: (a) the sum of: (i) EBITDA for the four consecutive fiscal quarters ending on such day plus (ii) the amount of cash on VCP’s consolidated balance sheet as of such day plus (iii) the sum of, for each marketable security (including Cash Equivalents) on VCP’s consolidated balance sheet as of such day, the lower of: (A) the face value and (B) the market value of such marketable security as of such day, to (b) the amount of Total Debt that is scheduled to mature during the four consecutive fiscal quarters after such day plus the actual Interest Expense incurred during the four consecutive fiscal quarters ending on such day. For the purpose of clarification, the calculation of Debt Service Coverage Ratio (and all components thereof) shall be made using Brazilian GAAP;

EBITDA” means, during any period, the total earnings of VCP (on a consolidated basis) before income taxes, Interest Expense, depreciation and amortization during such period, eliminating from the calculation of such earnings: (a) any net income or gain (or net loss), net of any tax effect, during such period from any extraordinary items, (b) any interest income during such period, (c) gains or losses during such period on the sale of Property (other than the sale of inventory in the ordinary course of business), (d) any other extraordinary non-cash items deducted from or included in the calculation of pre-tax net income for such period (other than items that will require cash payments and for which an accrual or reserve has been, or is required by GAAP to be, made), (e) the EBITDA for such period of any Subsidiaries or other Property disposed of or discontinued during such period and (f) any net income or gain (or net loss) on any foreign exchange
transactions or net monetary positions;

	
  
 
  	
  

  	
  
13
  

“Interest Expense” means, for any period, interest (or similar) expense on the Debt of VCP (on a consolidated basis), including (without duplication): (a) fees (including commitment fees and insurance premiums), (b) net payments under any interest rate protection agreement or other hedging agreement, (c) the interest portion of any deferred payment obligations, d) all fees and charges owed with respect to letters of credit or performance or other bonds, e) all accrued or capitalized interest, (f)any amortization of debt discount and (g) all but the principal component of payments relating to Capital Lease Obligations; 

“Net Debt” means Total Debt of VCP as of such day minus the sum of: (a) the aggregate amount of cash on its consolidated balance sheet as of such day plus (b) the sum of, for each marketable security (including Cash Equivalents) on VCP’s consolidated balance sheet as of such day, the lower of: (i) the face value and (ii) the market value of such marketable security as of such day. For the purpose of clarification, the calculation of Net Debt (and all components thereof) shall be made using Brazilian GAAP;

 “Net Debt” to EBITDA Ratio” means, the ratio (expressed as a decimal) of (a) Net Debt as of such date to (b) EBITDA for the two most recent fiscal semesters preceding such date. For the purpose of clarification, the calculation of Net Debt to EBITDA Ratio (and all components thereof) shall be made using Brazilian GAAP;

“Total Debt” means, with respect to VCP (determined without duplication): (a) all Indebtedness for borrowed money, (b) all obligations for the deferred purchase price of property or services (other than trade payables (whether payable to Affiliates or third parties) incurred in the ordinary course of business, but only if and for so long as such trade payables remain payable on customary trade terms, and accrued expenses incurred in the ordinary course of business), (c) all obligations evidenced by notes, bonds, debentures or other similar documents, (d) all obligations, contingent or otherwise, in connection with any securitization of any products, receivables or other property, (e) all obligations created or arising under any conditional sale or other title retention agreement with respect to property acquired (even though the rights and remedies of the seller or the lender under such agreement in the event of default are limited to repossession or
sale of such Property), (f) all capital lease obligations and similar obligations under “synthetic leases”, (g) all obligations, contingent or otherwise, in respect of acceptances, letters of credit, financial guaranty insurance policies or similar extensions of credit (excluding trade payables to the extent excluded from clause (b)), (h) all obligations to redeem, retire, defease or otherwise make any payment in respect of any capital stock, (i) all net obligations in respect of any interest rate protection agreement or any currency swap,  cap or collar agreement or similar arrangement providing for the transfer or mitigation of interest rate or currency risks either generally or under specific contingencies (but without regard to any notional principal amount relating thereto), (j) all Debt that is guaranteed by VCP and (k) all Debt referred to in clauses (a) through (j) secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by)
any lien on property even though VCP has not assumed or become liable for the payment of such Debt; 

	
  
 
  	
  

  	
  
14
  

“VCP” means Votorantim Celulose e Papel S.A.; 

then the Bank may, at its sole option and discretion, (A) take possession of those of the Goods which have therefore not been shipped by the Borrower and/or (B) demand that the Borrower make payment with respect to any or all amounts due and payable as specified by the Bank by delivering Goods (with an invoice value at least equal to the amount due and payable as specified by the Bank) to the Bank or any Affiliate designed thereby, with such delivery to be made at Borrower’s principal offices as identified  above. The Bank may thereupon take such steps as may reasonable to sell, assign or otherwise transfer those Goods (either directly or through any Affiliate thereof, as applicable), with proceeds of such sale, assignment, or transfer to be applied in total or partial satisfaction of the Borrower’s obligations under this Agreement and the Notes. The Borrower shall remain liable to the Bank for any such obligations, which are not satisfied by the
said proceeds. This remedy shall be in addition to, and not in limitation of, any other remedy which may be available to the Bank under this Agreement or under applicable law. 

13.      INDEMNITY. The Borrower agrees to indemnify the Bank against: (i) any cost (including, without limitation, any breakage costs), claim, loss, expense or liability, together with any taxes, duties or levies in respect thereof, which the Bank may sustain or incur as a consequence of the occurrence of any Event of Default or any default by the Borrower in the performance of any of its obligations hereunder or under the Notes; and (ii) any loss (including, without limitation, any reemployment loss), cost (including, without limitation, any breakage cost) or expense the Bank may suffer as a result of its funding or hedging the Advance requested by the Borrower hereunder but not made by reason of the operation of any one or more of the provisions hereof or the payment by the Borrower of any amount due in respect of the Advance on a date other than a Business Day in the calendar month in which the respective Repayment Date
is scheduled.

13.      COSTS AND EXPENSES.

13.1.      The Borrower may , from time to time on written demand of the Bank and upon submission of relevant and reasonable proof, reimburse the Bank for all costs and expenses (including, court costs and attorneys’ fees) together with any taxes, duties or levies in respect thereof incurred in connection with the preservation and/or enforcement of any of its rights under this Agreement and the Notes. 

13.2.      The Borrower shall pay all stamp, registration and other taxes to which this Agreement or the Notes or any judgment given in connection therewith is or at any time may be subject and shall, from time to time on demand, indemnify the Bank against any liabilities, costs, claims and expenses resulting from any failure to pay or any delay in paying any such tax, duty or levy.

	
  
 
  	
  

  	
  
15
  

14.      CURRENCY OF ACCOUNT AND PAYMENT.

14.1.      The United States dollar is the currency of account and payment for each and every sum at any time due from the Borrower hereunder; provided that: each payment in respect of costs and expenses shall be made in the currency in which the same were incurred. 

14.2.      If any amount payable by the Borrower under this Agreement or the Notes or under any order or judgment given or made in relation thereto has to be converted from the currency (the “first currency”) in which the same is payable thereunder or under such order or judgment into another currency (the “second currency”) for the purpose of (i) making or filing a claim or proof against the Borrower, (ii) obtaining an order or judgment in any court or other tribunal or (iii) enforcing any order or judgment given or made with respect thereto, the Borrower shall indemnify and hold harmless the Bank from and against any loss suffered as a result of any discrepancy between (a) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (b) the rate or rates of exchange at which the Bank may in the ordinary course of business purchase the
first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof.

15.      BENEFIT OF AGREEMENT. This Agreement shall be binding upon and inure to the benefit of each party hereto and its or any subsequent successors and assigns.

16.      ASSIGNMENTS.

16.1.      Except as provided herein, the Borrower may not assign or otherwise transfer all or any part of its respective rights or obligations under this Agreement and the Notes without the prior written consent of the Bank.

16.2.      With Prior written notice to the Borrower, the Bank may assign in whole and in part its rights and obligations under this Agreement and the Notes, provided, however, that such assignment does not increase the overall cost hereunder to the Borrower, in any way whatsoever. 

18.      REMEDIES AND WAIVERS. No failure by the Bank to exercise, nor any delay by the Bank in exercising, any right or remedy hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy. The rights and remedies provided in this Agreement and the Notes are cumulative and not exclusive of any rights or remedies provided by law.

19.      PARTIAL INVALIDITY. If, at any time, any provision hereof or of the Notes is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions thereof nor the legality, validity or enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby. 

	
  
 
  	
  

  	
  
16
  

20.      NOTICES.

20.1.      Each communication to be made hereunder shall be made in writing but, unless otherwise stated, may be made by telex, facsimile or letter.

20.2.      Any notice or other communication given in connection herewith to the Bank shall be sent to the Bank by hand delivery, by mail (postage prepaid), or by telefax, as follows: if by mail to ABN AMRO Bank N.V. - Amsterdam, Gustav Mahlerlaan,10 - 1082 PP - Amsterdam, if by telefax, to (3120) 628.1286 attn to RUUD FARENHORST ,or in such manner or at such address or telefax designation as the Bank gives the Borrower notice of in the fashion provided herein. Any notice, confirmation from, or other communication given in connection herewith by the Bank may be sent to the Borrower by hand delivery, by mail (postage prepaid), or by telefax, as follows: if by mail to FINANCIAL DEPARTMENT, and, if by telefax, to 0 55 xx 11 3269-4165. 

21.      LAW. This Agreement shall be governed by and shall be construed in accordance with, the laws of the State of New York without giving effect to the choice of law rules of the State of New York. 

22.      JURISDICTION.

22.1.      The Borrower hereby irrevocably agrees that the courts of the State of New York and the courts of the United States of America in New York shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and the Notes and, for such purposes, irrevocably submits to the jurisdiction of such courts. 

22.2.      The Borrower hereby irrevocably waives any objection which it might now or hereafter have to the courts referred to in Section 22.1 being nominated as the forum to hear and determine any suit, action or proceeding, and to settle any disputes, which may arise out of or in connection with this Agreement and the Notes and agrees not to claim that any such court is not a convenient or appropriate forum. 

22.3.      The submission to the jurisdiction of the courts referred to in Section 23.1 shall not (and shall not be construed so as to) limit the right of the Bank to institute proceedings against the Borrower in any other court of competent jurisdiction.

22.4.      The Borrower hereby consents generally in respect of any legal action or proceeding arising out of or in connection with this Agreement and the Notes to the giving of any relief or the issue of any process in connection with such action or proceeding including, without limitation, the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such action or proceeding.

	
   
  	
  

  	
  
17
  

23.5.      To the extent that the Borrower may in any jurisdiction claim for itself or its assets immunity from suit, execution, attachment (whether in aid of execution, before judgment or otherwise) or other legal process and to the extent that in any such jurisdiction there may be attributed to itself or its assets such immunity (whether or not claimed), the Borrower hereby irrevocably agrees not to claim and hereby irrevocably waives such immunity to the full extent permitted by the laws of such jurisdiction and, in particular, to the intent that in any proceedings taken in New York the foregoing waiver of immunity shall have effect under and be construed in accordance with the United States Foreign Sovereign Immunities Act of 1976. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

	
  
VOTORANTIM CELULOSE E PAPEL S.A.
  	
  
 
  	
  
ABN AMRO Bank N.V.
  
	
  the Borrower
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  
 
  
	
  Name :
  	
  
 
  	
  
 
  	
  
Name:
  	
  
 
  
	
  
Title: 
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  Name :
  	
   
  	
   
  	
  Name :
  	
   
  
	
  Title:
  	
   
  	
   
  	
   
  	
   
  

	
   
  	
  
  	
  18Exhibit 4.4

US$ 100,000,000

EXPORT PREPAYMENT AGREEMENT

dated as of July 22, 2005

among

VOTORANTIM CELULOSE E PAPEL S.A. – VCP
as Exporter

VCP EXPORTADORA E PARTICIPAÇÕES LTDA.
as Guarantor

VCP TRADING N.V.,
as Paying Agent

The LENDERS from time to time hereunder

BANCO SANTANDER CENTRAL HISPANO, LONDON BRANCH
as Lead Arranger

and

BANCO SANTANDER CENTRAL HISPANO, S.A., LONDON BRANCH
as Administrative Agent

EXPORT PREPAYMENT AGREEMENT

This EXPORT PREPAYMENT AGREEMENT (the “Prepayment Agreement”) is made as of July 22, 2005 by and among:

	
  
(1)
  	
  
VOTORANTIM   CELULOSE E PAPEL S.A., a company duly organised and existing under the laws   of the Federative Republic of Brazil, with its head office located at 1357,   Alameda Santos, 6th floor, Sao Paulo, Brazil, (“VCP” or the “Exporter”);
  
	
   
  	
  
 
  
	
  
(2)
  	
  
VCP   EXPORTADORA E PARTICIPAÇÕES LTDA., a corporation organised and existing under   the laws of t the Federative Republic of Brazil, with its head office located   at 1357, Alameda Santos, 7th floor, Sao Paulo, Brazil, (the “Guarantor”);
  
	
  
 
  	
  
 
  
	
  
(3)
  	
  
VCP   TRADING N.V., a corporation organised and existing under the laws of The   Netherlands Antilles, with its principal offices located at Netherlands   Antilles or its successor and/or assignee as may be informed to the Bank from   time to time and which shall perform the same duties as VCP Trading N.V. (the   “Paying Agent”) ;
  
	
  
 
  	
  
 
  
	
  
(4)
  	
  
The   BANKS listed in Schedule 2 as Lenders;
  
	
  
 
  	
  
 
  
	
  
(5)
  	
  
BANCO   SANTANDER CENTRAL HISPANO, S.A., LONDON BRANCH, a bank duly organised and   existing under the laws of Spain, acting through its London Branch, (together   with its successors and assigns, the “Lead Arranger”); and
  
	
   
  	
  
 
  
	
  
(6)
  	
  
BANCO   SANTANDER CENTRAL HISPANO, S.A., in its capacity as the Administrative Agent   for the Lenders (in such capacity and, together with its successors and   assigns, the “Administrative Agent”).
  

WITNESSETH

WHEREAS,  the Exporter and/or the Paying Agent, as the case may be, has entered or will enter into one or more Export Agreements with the Importers, pursuant to which the Exporter will export Goods from Brazil to the Importers (all capitalised terms used herein have the meanings assigned to them Section 1 below);

WHEREAS,  the Exporter’s and/or Paying Agent’s, as the case may be, sales of Goods under the Export Agreements will be made through several shipments (the “Covered Shipments”) with the aggregate Purchase Price for such Covered Shipments being at least US$ 125,000,000 (One hundred and twenty five million United States Dollars); 

WHEREAS, the Exporter and/or the Paying Agent, as the case may be, shall instruct each of the Importers to make payment due in respect of the Covered Shipments made to such Importer by forwarding the Purchase Price for the Goods so shipped to the Collection Account which shall be an account held in the name of the Administrative Agent; 

WHEREAS, the Paying Agent, or any substitute or replacement thereof, will act as paying agent for the Exporter and/or Guarantor, as the case may be, and shall act at all times on their behalf and will comply with the payment instructions given by them to fulfil their obligation to make payments to the Administrative Agent through the Collection Account as set forth herein;

2

WHEREAS, the Exporter has requested that the Lead Arranger act as lead arranger for an export prepayment financing facility pursuant to which certain Lenders listed on Schedule 2 hereto shall make advances in an aggregate principal amount of up to US$ 100,000,000.00 (collectively referred to as the “Advance”) for the prepayment of future exports to the Exporter in accordance with the prepayment mechanisms established under applicable Brazilian laws and regulations for financing export receivables, in particular with Central Bank regulations including without limitation the “Regulamento do Mercado de Câmbio e Capitais Internacionais”, the Resolution No. 1834 dated June 26, 1991 of the National Monetary Council and Circular No. 3027 dated February 2, 2001 and Circular No. 3280 dated March 9, 2005 of the Central Bank, with respect to the payments to be due from the Importer to the Exporter as provided above; 

WHEREAS, the Lenders have agreed to make the Advance to the Exporter, subject to the terms and conditions set forth herein and provided that the Exporter grants to the Administrative Agent for the benefit of the Administrative Agent and the Lenders a first priority security interest in the Export Agreements; 

WHEREAS, the Exporter agrees to repay any and all principal and interest on the Advance provided hereunder and to pay all fees, expenses and other amounts due hereunder in accordance with the terms and conditions set forth herein; 

WHEREAS, the Exporter, shall irrevocably instruct the Administrative Agent to apply funds received in the Collection Account to make payments due hereunder to the Lenders;

WHEREAS, the Guarantor shall issue a guarantee in the form contained in Section 21 hereof as security for the liabilities and obligations of the Exporter; and

WHEREAS, the Exporter has agreed to assign to the Administrative Agent, for the benefit of the Lenders, sixty (60) days prior to each Instalment, export receivables with a value in aggregate not less than 125% of the amount of such Instalment and any Interest due thereon, it being understood that provisions under Section 12 (t) shall apply.

NOW, THEREFORE, In consideration of the undertakings contained herein, the parties agree as follows:

Section 1.     Definitions

The following terms shall have the meanings ascribed hereunder (all the terms defined in the singular to have the same meaning when used in the plural and vice versa):

“Administrative Agent” shall mean Banco Santander Central Hispano, S.A., London Branch.

“Administrative Fee” shall have the meaning ascribed in Section 15 below.

“Advance” shall mean each and all amounts disbursed under this Prepayment Agreement by the Lenders to the Exporter, as designated in each Promissory Note for the Advance, provided the aggregate amount of all disbursements shall not exceed US$100,000,000.00 (One Hundred Million United States Dollars).

“Advance Document” shall mean any of this Prepayment Agreement, the Promissory Note, and the Disbursement Request.

3

“Affiliate” shall mean any Person directly or indirectly controlling, controlled by, or under common control with, any other Person. For this purpose, “control” of any Person means ownership of 10% or more of the Voting Stock of the Person or the ability, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise; provided that Aracruz Celulose S.A. shall not be considered an Affiliate of the Obligors unless the Votorantim Group (in the aggregate) possesses, directly or indirectly, the power to vote 30% or more of the Voting Stock of Aracruz Celulose S.A. or to direct or cause the direction of the management and policies of Aracruz Celulose S.A., whether through ownership of the Voting Stock, by contract or otherwise.

“Arrangement Fee” shall have the meaning set forth in Section 15 below. 

“Assignment” shall mean the assignment made by the Exporter in Section 22 of this Prepayment Agreement.

“Assignment Agreement” shall have the meaning set forth in Section 18 below.

“Availability Period” shall mean the period commencing on the date hereof and ending on the 30th day following the date of execution of this Prepayment Agreement, during which the Lenders agree to make Advances in accordance with Section 2 of this Prepayment Agreement.

“Banking Day” shall mean any day on which commercial banks are open for business in New York City, United States of America, London, England and São Paulo, Brazil. 

“Brazil” shall mean the Federative Republic of Brazil.

“Brazilian GAAP” shall mean the accounting principles prescribed by Brazilian corporate law.

“Breakage Costs” shall mean the costs referred to in Section 16 (a) of this Prepayment Agreement.

“Business” shall mean (i) the business of producing pulp and paper and/or other related products and (ii) other lines of business that are related or incidental to the business described under clause (i) of this definition.

“Capital Lease Obligations” means, as to a Surviving Entity, the obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or personal property, which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP and, for purposes of this Prepayment Agreement, the amount of such obligations shall be the capitalised amount thereof determined in accordance with GAAP.

“Capital Stock” means any and all shares, interests, participations, quotas or other equivalents (however designated) of capital stock of a corporation, any and all ownership interests in a Person other than a corporation and any and all warrants or options to purchase any of the foregoing.

“Cash Equivalents” means any of the following: (a) readily marketable direct obligations of the government of the United States of America or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the government of the United States, (b) insured certificates of deposit of or time deposits with the Lenders or a member of the Federal Reserve System, which issues (or the parent of which issues) commercial paper rated as described in clause (c), is organised under the laws of the United States of America or any State (or the District of Columbia) thereof and has combined capital and surplus of at least US$1,000,000,000, (c) commercial paper in an aggregate amount of no more than US$10,000,000 per issuer outstanding at any time, issued by any corporation organised under the laws of any State (or the District of Columbia) of the United States of America and rated at least “Prime-1” (or the
then equivalent grade) by Moody’s and “A-1” (or the then equivalent grade) by S&P, or (d) other investments considered as cash equivalents under Brazilian GAAP.

4

“Central Bank” shall mean Banco Central do Brasil.

“Change of Control” shall mean the Exporter shall cease to (i) own beneficially and control (either directly or indirectly) more than 50 (fifty percent) of the Guarantor’s or the Paying Agent’s issued and outstanding voting capital stock and other equity interests in the Guarantor or the Paying Agent as of the date hereof, or (ii) have the power (by ownership of capital stock or otherwise) to control the management or policies of the Guarantor or the Paying Agent.

“Collection Account” shall mean that account held by the Administrative Agent and informed in writing to the Exporter, Guarantor and Paying Agent from time to time.

“Coverage Ratio” shall mean, for each Interest Period the ratio of 1.25 corresponding to the amount paid by the Importers under the assigned Export Agreements and Export Receivables into the Collection Account during the Measurement Period divided by the amounts due by the Exporter in the next applicable Instalment as stated in Section 5(a) hereof plus any applicable interest.. 

“Debt” means, with respect to any Person (determined without duplication): (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of Property or services (other than trade payables (whether payable to Affiliates or other Persons) incurred in the ordinary course of such Person’s business, but only if and for so long as such trade payables remain payable on customary trade terms, and accrued expenses incurred in the ordinary course of business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar documents, (d) all obligations, contingent or otherwise, of such Person in connection with any securitization of any products, receivables or other Property, (e) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person (even though the rights and
remedies of the seller or the lender under such agreement in the event of default are limited to repossession or sale of such Property), (f) all Capital Lease Obligations and similar obligations under “synthetic leases” of such Person, (g) all obligations, contingent or otherwise, of such Person in respect of acceptances, letters of credit, financial guaranty insurance policies or similar extensions of credit (excluding trade payables to the extent excluded from clause (b)), (h) all obligations of such Person to redeem, retire, defease or otherwise make any payment in respect of any Capital Stock of such Person, (i) all net obligations of such Person in respect of any interest rate protection agreement or any currency swap, cap or collar agreement or similar arrangement entered into by such Person providing for the transfer or mitigation of interest rate or currency risks either generally or under specific contingencies (but without regard to any notional principal amount relating thereto),
(j) all Debt of other Persons referred to in clauses (a) through (i) or clause (k) that is Guaranteed by such Person and (k) all Debt referred to in clauses (a) through (j) secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on Property of such Person even though such Person has not assumed or become liable for the payment of such Debt.

“Debt Service Coverage Ratio” means, as of the last day of any fiscal quarter of VCP, the ratio (expressed as a decimal) of: (a) the sum of: (i) EBITDA for the four consecutive fiscal quarters ending on such day plus (ii) the amount of cash on VCP’s consolidated balance sheet as of such day plus (iii) the sum of, for each marketable security (including Cash Equivalents) on VCP’s consolidated balance sheet as of such day, the lower of: (A) the face value and (B) the market value of such marketable security as of such day, to (b) the amount of Total Debt that is scheduled to mature during the four consecutive fiscal quarters after such day plus the actual Interest Expense incurred during the four consecutive fiscal quarters ending on such day. For the purpose of clarification, the calculation of Debt Service Coverage Ratio (and all components thereof) shall be made using Brazilian GAAP.

5

“Disbursement Date” shall mean each date of disbursement of the Advance in accordance with the applicable Disbursement Request.

“Disbursement Request” shall mean each Disbursement Request by the Exporter to the Administrative Agent, substantially in the form of Exhibit B hereto, for a disbursement of the proceeds of the Advance.

“EBITDA” means, during any period, the total earnings of a Surviving Entity (on a consolidated basis) before income taxes, Interest Expense, depreciation and amortisation during such period, eliminating from the calculation of such earnings: (a) any net income or gain (or net loss), net of any tax effect, during such period from any extraordinary items, (b) any interest income during such period, (c) gains or losses during such period on the sale of Property (other than the sale of inventory in the ordinary course of business), (d) any other extraordinary non-cash items deducted from or included in the calculation of pre-tax net income for such period (other than items that will require cash payments and for which an accrual or reserve has been, or is required by GAAP to be, made), (e) the EBITDA for such period of any Subsidiaries or other Property disposed of or discontinued during such period and (f) any net income or gain (or net loss) on any foreign

exchange transactions or net monetary positions.

“Export Agreements” shall mean the agreements, made from time to time, with the Importers pursuant to which the Exporter, the Paying Agent and/or the Guarantor, as the case may be, will export Goods from Brazil to the Importers.

“Export Receivables” shall mean all account receivables arising out of any Export Agreement.

“Event of Default” shall have the meaning set forth in Section 12 hereof.

“Final Maturity Date” shall mean, subject to Section 5(e), in relation to each disbursement, the day which is 84 (eighty-four) months after the Disbursement Date. 

“First Instalment Date” shall have the meaning set forth in Section 5(a).

“Fiscal Semester” means each period from and including January 1 through and including June 30 of each year and from and including July 1 through and including December 31 of each year.

“GAAP” means, with respect to any Person, the generally accepted accounting principles (as in effect from time to time) applicable to it in its home jurisdiction.

“Goods” shall mean pulp and paper and/or other related products.

“Governmental Authority” shall mean any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) and any entity exercising executive, legislative, judicial, regulatory or administrative authority of or pertaining to government (whether such authority is recognised as a de jure government or is a de facto government).

6

“Guarantee” shall mean the guarantee given by the Guarantor in Section 21 of this Prepayment Agreement.

“Importers” shall mean, jointly or severally:

	
  
(i)
  	
  
OECD-based   commercial counterparts acceptable to the Lead Arranger, the Administrative   Agent and the Lenders to be determined prior to the date hereof,   (collectively the “Initial Importers”) as evidenced in Schedule I hereto, or
  
	
  
(ii)
  	
  
At   any time after the date hereof, certain other importers approved by the Lead   Arranger, the Administrative Agent and the Lenders, or
  
	
  (iii)
  	
  
Commercial   counterparts whose obligations to the Exporter, the Paying Agent or the   Guarantor, as the case may be,  are   insured by certain policies or guaranteed by letters of credit issued by   financial institutions acceptable to the Lenders and rated at least A by   Standard & Poors’ or A2 by Moody’s, with exceptions to be agreed (the   “Eligible Financial Institutions”), or
  
	
  
(iv)
  	
  
Commercial   counterparts located in any country and whose dealings with which are not   generally prohibited by United States law or by the United Nations who enter   into sales agreements with the Exporter, the Paying Agent or the Guarantor,   as the case may be,  which call for   payment in full on a pre-shipment basis,
  

“Instalments” shall have the meaning set forth in Section 5 (a) below.

“Interest” shall have the meaning ascribed in Section 4 below.

“Interest Expense” means, for any period, interest (or similar) expense on the Debt of a Surviving Entity (on a consolidated basis), including (without duplication): (a) fees (including commitment fees and insurance premiums), (b) net payments under any interest rate protection agreement or other hedging agreement, (c) the interest portion of any deferred payment obligations, (d) all fees and charges owed with respect to letters of credit or performance or other bonds, (e) all accrued or capitalised interest, (f) any amortisation of debt discount and (g) all but the principal component of payments relating to Capital Lease Obligations.

“Interest Payment Date” shall mean the day when interest is due and payable according to Schedule 3.

“Interest Period” shall mean in relation to each Advance, (a) the time period commencing on and including the Disbursement Date corresponding to such Advance and ending on but excluding the first Interest Payment Date; and (b) each subsequent time periods between two consecutive Interest Payment Dates thereafter, provided that the final date of the last of such Interest Period shall be the Final Maturity Date.

“Interest Rate” for an Interest Period shall mean LIBOR plus the Margin.

“Lead Arranger” shall mean Banco Santander Central Hispano S.A., London Branch.

“Lenders” shall mean any of the institutions identified in Schedule 2. attached hereto, together with its successors and permitted assigns pursuant to the Section 18 below.

“LIBOR” shall mean, for any Interest Period, an interest rate per annum determined on the basis of the London interbank offered rate for deposits in Dollars for a period of time comparable to the relevant Interest Period, shown on the display page designated British Bankers Association Interest Settlement Rates, “LIBOR 01” Page, on the Reuters screen or such other page as may replace that page in that service, at approximately 11:00 a.m., London time, 2 (two) Banking Days prior to the first day of such Interest Period. In the event that such rate does not appear on such LIBOR 01 Reuters screen page, or such other page
as may replace that page in that service, then LIBOR shall be the arithmetic mean (expressed as an annual rate and rounded upwards, if necessary, to the nearest 1/16 of 1%) of the rates quoted at approximately 11:00 a.m.

7

London time by 3 (three) leading banks, chosen by the Administrative Agent and agreed by the parties hereto as the rate at which deposits in Dollars are offered to such banks by prime banks, in the London interbank market for a period of time comparable to the relevant Interest Period, at approximately 11:00 a.m. 2 (two) Banking Days prior to the first day of such Interest Period. If the Exporter does not agree with the LIBOR quoted by the Administrative Agent, the Lenders shall have no obligation to make the disbursement related to the Advance or if the Advance has already been made, the rate will be reasonably determined by the Administrative Agent.

“Lien” means any mortgage, lien, pledge, usufruct, fiduciary transfer (alienação fiduciária), charge, encumbrance or other security interest or any preferential arrangement (including a securitization) that has the practical effect of creating a security interest.

“Majority Lenders” shall mean the Lenders holding at least 66% (sixty-six percent) of the Advances.

“Margin” shall mean 1.49% p.a. (One point Forty Nine percent per annum).

“Material Adverse Effect” shall mean a material adverse effect on the business, operations, property, or financial condition of the Exporter or the Guarantor and its direct or indirect subsidiaries (taken as a whole) which will, in the opinion of the Lenders, as justified in writing, impair the ability of the Exporter or the Guarantor to perform its obligations under any of the Advance Documents; provided that there should be no Material Adverse Effect in the event the Lenders receive a remedy, that it considers satisfactory, from the Exporter, the Paying Agent and/or the Guarantor upon demand.

“Measurement Period” shall mean the period beginning and including the day that is 60 days (each a “Measurement Date”) before the next Interest Payment Date and ending on and including such Interest Payment Date.

“Net Debt” means, as of the date of the consummation of any merger, consolidation, sale, transfer, lease or other disposition pursuant to Section 11(a), a Surviving Entity’s Total Debt as of such day minus the sum of: (a) the aggregate amount of cash on its consolidated balance sheet as of such day plus (b) the sum of, for each marketable security (including Cash Equivalents) on such Surviving Entity’s consolidated balance sheet as of such day, the lower of: (i) the face value and (ii) the market value of such marketable security as of such day. For the purpose of clarification, the calculation of Net Debt (and all components thereof) shall be made using Brazilian GAAP.

“Net Debt to EBITDA Ratio” means, the ratio (expressed as a decimal) of (a) Net Debt as of such date to (b) EBITDA for the two most recent Fiscal Semesters preceding such date. For the purpose of clarification, the calculation of Net Debt to EBITDA Ratio (and all components thereof) shall be made using Brazilian GAAP.

“Obligors” shall mean either of the Exporter, the Paying Agent and/or the Importers.

“OECD Country” means, at any time, any nation that is a member of the Organisation for Economic Co-operation and Development at such time.

“Person” shall mean any individual, corporation, partnership, trust, unincorporated organisation, joint stock company or other legal entity or organisation and any government or agency or political subdivision thereof.

8

“Promissory Note” shall mean each promissory note substantially in the form of Exhibit A hereto duly executed and delivered by an authorised signatory of the Exporter and the Guarantor.

“Property” of any Person means any property, rights or revenues, or interest therein, of such Person.

“Purchase Price” shall mean in relation to each Covered Shipment the purchase price to be paid therefore by the relevant Importer.

“Receivable” means each account or payment intangible or similar obligation arising under any Export Agreement.

“Relevant Person” shall mean any Affiliate, Subsidiary or group company of VCP.

“Responsible Officer” of a Person shall mean any Executive Officer of that Person.

“Shipping Documents” shall mean in relation to each Covered Shipment, originals or copies of (a) the “despacho aduaneiro” (customs receipt) related thereto, (b) the bill of lading or other shipping document evidencing such shipment, and (c) any draft or other payment document presented to the relevant Importer.

“Subsidiary” means with respect to any Person, any corporation or other entity more than 50% of the Voting Stock of which is owned or controlled directly or indirectly, by such Person and/or by any Subsidiary of such Person.

“Surviving Entity” means any surviving Person as described in Section 11(a)(i)(A)(1) or Person to whom substantially all of the assets of the Exporter or the Guarantor, as the case may be, shall have been transferred as described in Section 11(a)(i)(A)(2), in each case, that is not the Guarantor, the Exporter or a Subsidiary thereof.

“Total Capitalisation” means, as of the last day of any fiscal quarter of the Exporter, the sum of: (a) the Total Debt as of such day plus (b) the net worth of the Exporter (on a consolidated basis) as of such day plus (c) without duplication of clause (b), the sum of minority interests in other Persons held by the Exporter (on a consolidated basis) as of such day.

“Total Debt” means, as of the last day of any fiscal quarter of the Exporter, the aggregate outstanding principal amount of Debt of the Exporter (on a consolidated basis) as of such day and as it refers to 11(a) as of the date of the consummation of any merger, consolidation, sale, transfer, lease or other disposition, the aggregate outstanding principal amount of Debt of a Surviving Entity (on a consolidated basis) as of such day.

“Total Debt to Total Capitalisation Ratio” means, as of the last day of any Fiscal Semester of the Exporter, the ratio (expressed as a decimal) of: (a) the Total Debt as of such day to (b) the Total Capitalisation as of such day. For the purpose of clarification, the calculation of the Total Debt to Total Capitalisation Ratio (and all components thereof) shall be made using Brazilian GAAP.

“Undertaking” means all of the Exporter’s present and future, rights and remedies under the Export Agreement together with all present and future rights under any security, guarantee or other form of credit support created in its favour in respect of an Importer’s obligations under the Export Agreements (collectively, the “Undertakings”).

“Up-front-Participation Fee” shall have the meaning ascribed in Section 15 below.

9

“US Dollars”, “Dollars” or “US$” shall mean the lawful currency of the United States of America.

“Votorantim Group” means the group of related companies comprised of Hejoassu Administração Ltda. and its Subsidiaries.

“Voting Stock” of a Person means Capital Stock in such Person having power to vote for the election of directors or similar officials of such Person or otherwise voting with respect to actions of such Person (other than such Capital Stock having such power only by reason of the happening of a contingency).

Section 2.     The Commitment

	
  
(a)
  	
  
Subject   to the terms and conditions set forth in this Prepayment Agreement, the   Lenders hereby agrees to make the Advance during the Availability Period as   an anticipated payment of certain future exports in accordance with Central   Bank regulations.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
Each   Advance shall be evidenced by a single Promissory Note dated the applicable   Disbursement Date and duly completed and executed by the Exporter and the   Guarantor. The maximum amount disbursed under the Prepayment Agreement shall   be US$100,000,000 (One Hundred Million US Dollars).
  

Section 3.     Making of the Advance; Use of Proceeds

	
  (a)
  	
  
Subject   to the satisfaction of the conditions set forth in Section 8 herein, the   Lenders shall make an Advance provided that (i) the Administrative Agent   shall have received from the Exporter a Disbursement Request at least three   (3) Banking Days, and not later than 11:00 a.m. (São Paulo time), prior to   the applicable Disbursement Date of the Advance and (ii) the Administrative   Agent, on behalf of the Lenders, shall send to the Exporter its   acknowledgement and agreement to the Disbursement Request on the same date.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter shall treat the proceeds of the Advance as a pre-payment of future   exports of the Goods to the Importers, all in accordance with and pursuant to   the terms and conditions of current Brazilian laws and regulations applicable   to export prepayment operations.
  

Section 4.     Interest

	
  
(a)
  	
  
The   Exporter shall pay interest (the “Interest”) on the outstanding Advance on   each Interest Payment Date during the relevant Interest Periods at the   Interest Rate for the Advance, from the Disbursement Date until the Final   Maturity Date. Such payment shall be made, at Exporter’s option, except as   provided in paragraph (d) below, either (i) directly by the Exporter to the   Administrative Agent ‘s account as listed herein in Section 5(b) or (ii) if   so determined by the Exporter as notified in writing to the Administrative   Agent, through the Paying Agent.  The   Paying Agent hereby agrees to make such payment of Interest then due in   accordance with the terms hereof if so instructed by the Exporter.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
The   Advance , any Interest thereon (to the extent permitted by law), and any   other amount due and payable under this Prepayment Agreement that is past due   (whether at the Final Maturity Date, by acceleration or otherwise) shall bear   interest from the date such amount is due until such amount is paid in full   at the per annum rate that is the then applicable Interest Rate plus 1% p.a.   (one percent per annum).
  

10

	
  
(c)
  	
  
Interest   shall be calculated on the basis of a year of 360 days for the actual number   of days elapsed (including the first day, but excluding the last day).   Accrued Interest shall be due and payable in arrears upon any payment of the   Advance and on each applicable Interest Payment Date. However, interest   accruing according to paragraph (b) shall be due and payable from time to   time on demand of the Lenders.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
In   the event that the Exporter (or the Paying Agent, as provided in paragraph   (a) above) is unable for any reason, including without limitation, because of   an action or inaction by any Governmental Authority of Brazil, to pay   Interest as provided hereunder, the Exporter shall make additional Covered   Shipments to Importers at such times and in such amounts as permitted by the   relevant Governmental Authority so that the aggregate Purchase Prices paid   for such Covered Shipments by the Importers and/or paid in connection of any   Undertakings and deposited in the Collection Account are sufficient to pay to   the Administrative Agent (for the benefit of the Lenders) the amount of   Interest due hereunder as and when due. In such case, the Paying Agent, on   behalf of the Exporter, shall make such payments of Interest to the   Administrative Agent (for the benefit of the Lenders) using funds available   in the Collection Account.
  

Section 5.     Repayments; Prepayments 

	
  
(a)
  	
  
Each   Advance shall be due and payable in 25 equal monthly instalments (each, an   “Instalment”) beginning on the Banking Day that is 60 months after the   Disbursement Date (the “First Instalment Date”), as shown in Schedule 3.   Notwithstanding the foregoing, any monies received by the Administrative   Agent shall be applied in the following order: (a) Breakage Costs (if any);   (b) Interest due and unpaid; (c) to reduce the amount of principal due and   unpaid on the next Instalment. Provided no Event of Default has occurred and   is continuing, the amount paid into the Collection Account corresponding the   payment of the next Instalment in excess of the amount due in the next   Instalment plus applicable Interest therein shall be made available to the   Exporter.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter shall itself, or shall cause the Paying Agent to (for the benefit   and on behalf of the Exporter), instruct all Importers to make all payments   due hereunder and/or shall cause to be paid the proceeds arising from the   Undertakings in US Dollars, in same day funds, no later than 10:00 a.m. (New   York time), on the dates such payments are due, without set-off, counterclaim   or deduction, directly to the account informed by the Administrative Agent in   writing from time to time.
  
	
  
 
  	
  
 
  
	
  (c)
  	
  
Repayment   of the Advance shall be made by payment of funds to the Collection Account.   To that end, the Exporter agrees to, or cause the Paying Agent to (i) act in   accordance with sub-item (b) above, (ii) upon request, but in any case not   before 10 (ten) days after the relevant repayment date, provide the   Administrative Agent with originals or copies of all Shipping Documents   related to such Covered Shipments. The Administrative Agent shall transfer   sufficient funds from the Collection Account towards repayment of the   Exporter’s indebtedness hereunder. It is hereby understood that funds not   received by 10:00 a.m. (New York time) and, in the absence of any   authenticated notification received in form and substance satisfactory to the   Administrative Agent from the Importer’s bank(s) confirming that such payment   has been made, then the Administrative Agent will make payment next day value   after receipt of funds.
  

11

	
  
(d)
  	
  
The   Exporter or the Paying Agent, on behalf of the Exporter, shall make   available, when and as due, funds in the Collection Account sufficient to   satisfy the payment obligations of the Exporter hereunder and under the   Advance on the due dates thereof, notwithstanding any other obligations which   the Exporter or the Paying Agent may have to any other Person, repayment of   which is intended to be made from funds in such Collection Account. Funds   paid into the Collection Account on a date that is not an Interest Payment   Date shall be invested by the Administrative Agent on behalf of the Exporter   until the next Interest Payment Date.
  
	
   
  	
  
 
  
	
  
(e)
  	
  
If   the due date of any payment under this Prepayment Agreement or under the   Promissory Note would fall on a day which is not a Banking Day, such date   shall be extended to the next Banking Day (and Interest shall be payable for   the Advance so extended for the period of such extension), unless such   Banking Day falls in the next calendar month, in which case the payment shall   be due on the immediately preceding Banking Day.
  
	
  
 
  	
  
 
  
	
  
(f)
  	
  
If   the Lenders holding at least 66% (sixty six per cent) determine that a   Material Adverse Effect has occurred, such Lenders shall promptly inform the   Administrative Agent in writing who shall in turn, within a period of no more   than three Banking Days, provide written notice thereof to the Guarantor and   the Exporter and, in case each Lender does not receive satisfactory remedy   from the Exporter, the Paying Agent and/or the Guarantor, the Administrative   Agent (after consultation with the Lenders) shall provide to the Guarantor   and the Exporter a written demand for prepayment of the then outstanding   principal amount of the Advance and within 90 (ninety) Banking Days of   receipt of such demand by the Exporter and the Guarantor, the Exporter shall   prepay in full the then outstanding principal amount of the Advance, together   with accrued Interest thereon.
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
The   Exporter may, on a Banking Day, prepay all or a portion of any Advance  at any time or from time to time, which   pre-payment shall in each case, be made together with accrued and unpaid   Interest on the principal amount, so prepaid and all other amounts then   payable under this Prepayment Agreement without premium but subject to the   costs and expenses described in Section 16 (solely in the event that such   prepayment is made on a day other than the final day of an Interest Period);   provided that: (a) the Exporter shall give the Lenders  notice of each such pre-payment at least   three (3) Banking Days prior to the date of such prepayment (and, upon the   date specified in any such notice, the amount to be prepaid shall become due   and payable hereunder), (b) each such notice of pre-payment shall specify the   amount of the Advance being prepaid and (c) each partial pre-payment shall be   applied to the outstanding Advances in the inverse
order of maturity.
  

Section 6.     Taxes

	
  
(a)
  	
  
The   Exporter will pay to the Administrative Agent (for the benefit of the Lenders),   all amounts due under this Prepayment Agreement and the Promissory Note free   and clear of all deduction of any present or future taxes, levies, imposts,   charges, withholdings, penalties, fines, additions to tax and interest,   imposed or levied in Brazil or any other jurisdictions from which any payment   hereunder or under the Promissory Note is remitted, or any political   subdivision or taxing authority thereof (the “Taxes”), except taxes imposed   on each of the Lenders’ income by the jurisdiction under which such Lender is   incorporated.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
In   the event the Exporter is required to deduct or withhold any Taxes, the   Exporter hereby agrees to pay the required deductions contemplated in Section   6(a) herein, including deductions applicable to the additional amounts   payable thereunder, so that the Administrative Agent shall receive an amount   equal to the sum the Lenders would have received had no such deductions been   made.
  

12

	
  (c)
  	
  
Upon   the Administrative Agent’s request, the Exporter shall, within thirty (30)   days, furnish a copy of the official receipts evidencing payment of Taxes   made according to this Section 6, if any.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
The   Exporter shall indemnify the Administrative Agent and the Lenders for the   full amount of Taxes or any penalties, interest and expenses arising   therefrom paid by each Lender. This indemnification shall be made within 45   days from the date the Lenders make written request therefor, subject to   Central Bank authorisation.
  

Section 7.     Illegality

	
  
(a)
  	
  
If,   after the date of this Prepayment Agreement, the introduction of, or any   change in, any applicable law, rule or regulation or in the interpretation or   administration thereof by any Governmental Authority charged with the   interpretation or administration thereof or compliance by any of the Lenders   with any request or directive (whether or not having the force of law) of any   such authority shall make it unlawful or impossible for any of the Lenders to   make, maintain or fund the Advance, and after such Lender or Lenders have   made reasonable efforts to make, maintain or fund the Advance using other   alternatives such as lending offices in other jurisdictions, then such Lender   or Lenders forthwith shall so notify the Exporter in writing, whereupon the   obligation of such Lender or Lenders to make or maintain the Advance shall be   terminated. Upon receipt of such notice, the Exporter shall prepay in full   the then outstanding principal amount
of the Advance, together with accrued   Interest thereon, on the later of either (a) the last day of Interest Period   applicable thereto or (b) within sixty-six (66) Banking Days.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
If   Brazil or any competent authority thereof shall declare a moratorium on the   payment of or default on, all or a substantial part of the Indebtedness of   Brazil or any governmental agency or authority thereof or persons or   corporations therein, the effect of which does or will prevent or impede any   payment in respect of the Advance and the validity of “pre-pagamento”   agreements in Brazil, then the Exporter forthwith shall so notify the   Administrative Agent in writing within ten (10) Banking Days. Whereupon,   unless within 20 (twenty) Banking Days the Administrative Agent, after   consultation with the Lenders certifies in writing that it is satisfied that   the Exporter, the Paying Agent and/or the Guarantor, shall be able to meet   their respective obligations hereunder, the Exporter shall prepay in full the   then outstanding principal amount of the Advance, together with accrued   Interest thereon, on the later of either (a) the last
day of Interest Period   applicable thereto or (b) within ninety (90) Banking Days.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
If,   after the date of this Prepayment Agreement, the introduction of, or any   change in the law in the Exporter’s country shall occur which renders this   Prepayment Agreement invalid, illegal or unenforceable, the Exporter shall   prepay in full the then outstanding principal amount of the Advance, together   with accrued Interest thereon, on the later of either (a) the last day of   Interest Period applicable thereto or (b) within sixty-six (66) Banking Days.
  
	
  
 
  	
  
 
  
	
  (d)
  	
  
Prepayment   pursuant to this Section 7 shall be made without payment of Costs and   Expenses as defined in Section 16.
  

13

Section 8.     Conditions Precedent

	
  
(a)
  	
  
The   obligation of the Lenders to make the Advance is subject to the condition   precedent that the Administrative Agent shall have received the following   documents and instruments, duly executed, created or issued, as the case may   be:
  
	
  
 
  	
  
 
  
	
  
(i)
  	
  
 
  	
  
This   Prepayment Agreement;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(ii)
  	
  
 
  	
  
A   copy of the Financial Transaction Registration (“Registro de Operações   Financeiras – ROF”) issued by Central Bank of Brazil;
  
	
   
  	
  
 
  	
  
 
  
	
  
(iii)
  	
  
 
  	
  
Evidence   of  payment of the fees due hereunder;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(iv)
  	
  
 
  	
  
A   Disbursement Request and the Promissory Note;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(v)
  	
  
 
  	
  
The   Exporter’s and the Guarantor’s balance sheet and statement of income,   stockholders’ equity and cash flows as of and for the fiscal year ended 2004,   certified by its independent public accountants;
  
	
  
 
  	
  
 
  	
  
 
  
	
  (A)
  	
  
Legal   opinion from Brazilian counsel to the Exporter addressed to the   Administrative Agent and regarding matters requested by the Administrative   Agent;
  
	
  
 
  	
  
 
  
	
  
(vi)
  	
  
 
  	
  
Copies   of (A) the by-laws of the Exporter, the Paying Agent and Guarantor and   Articles of Incorporation, if applicable, and (B) relevant corporate   authorisations of the Exporter, the Paying Agent and the Guarantor necessary   to authorise the execution, delivery and performance of the Advance   Documents;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(vii)
  	
  
 
  	
  
A   certificate from a duly authorised Responsible Officer of each of the   Exporter, the Paying Agent and the Guarantor as to the incumbency and   signatures of its duly authorised officers that are authorised to execute and   deliver the Advance Documents in form and substance acceptable to the   Administrative Agent;
  
	
  
 
  	
  
 
  	
  
 
  
	
  (viii)
  	
  
 
  	
  
The   relevant certificate from the Law Debenture Corporate Services Limited,   referred to in Section 17.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   obligation of the Lenders to make the Advance is also subject to the   satisfaction of the following conditions precedent, and the disbursement by   the Lenders of the Advance shall constitute a representation by the Exporter   that items (i), (ii) and (iii) below shall have been satisfied on and as of   the Disbursement Date:
  
	
  
 
  	
  
 
  
	
  
(i)
  	
  
 
  	
  
the   representations and warranties made by the Exporter, the Guarantor and the   Paying Agent herein shall be true and correct on and as of the Disbursement   Date;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(ii)
  	
  
 
  	
  
both   immediately prior to the making of the Advance and after giving effect   thereto and to the intended use of the proceeds thereof, no Event of Default shall   have occurred and be continuing; and
  
	
   
  	
  
 
  	
  
 
  
	
  
(iii)
  	
  
 
  	
  
there   has been no material adverse change, since the last audited financial   statements of the Exporter, the Paying Agent and the Guarantor received by   the Administrative Agent, in the economic and/or financial condition of the   Exporter or the Guarantor.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(c)
  	
  
Upon   the receipt by the Exporter of the Disbursement Request duly acknowledged and   agreed by the Administrative Agent, the Lenders shall make the Advance,   notwithstanding the provisions of item b (iii) above.
  

14

Section 9.     Representations and Warranties

	
  
(a)
  	
  
Each   of the Exporter, the Paying Agent and the Guarantor hereby represent and   warrant that:
  
	
   
  	
  
 
  
	
  
(i)
  	
  
 
  	
  
It   is duly organised and validly existing under the laws of the jurisdiction of   its organisation, registered with the “Departamento do Comércio Exterior –   Decex”, and has full power, authority and legal right to borrow the Advance   and to execute, deliver and perform this Prepayment Agreement and any   Promissory Note in the form set forth in Exhibit A.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(ii)
  	
  
 
  	
  
The   Advance contemplated herein and the execution, delivery and performance of   this Prepayment Agreement and of the Promissory Note are within its powers,   and have been duly authorised by all necessary actions, and do not violate   any provision of applicable law, regulation or order of any court or   regulatory body. Furthermore, the Advance contemplated under this Prepayment   Agreement and evidenced by the Promissory Note will not result in the breach   of, constitute a default, or require any consent under any agreement,   instrument or document to which it is a party or by which it or any of its   property may be bound or affected.
  
	
  
 
  	
  
 
  	
  
 
  
	
  (iii)
  	
  
 
  	
  
This   Prepayment Agreement constitutes its legal, valid and binding obligation, enforceable   against it in accordance with its terms.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(iv)
  	
  
 
  	
  
There   are no actions, suits or proceedings pending or, to its knowledge, threatened   against or affecting it before any court, governmental agency or arbitrator,   which may, in any one case or in the aggregate, have a Material Adverse   Effect and which as of the Disbursement Date have not been remedied in full   or otherwise are not being remedied in a manner satisfactory to the   Administrative Agent and the Lenders.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(v)
  	
  
 
  	
  
It   has good title to, or valid leasehold interests in, all its real and personal   property material to its business, except for defects in title that do not   interfere with its ability to conduct its business as currently conducted or   to utilise such property for its intended purposes. It owns or is licensed or   otherwise has the right to use all of the patents, contractual franchises,   licenses, authorisations and other rights that are reasonably necessary for   the operation of its business, without conflict with the rights of any other   Person.
  
	
   
  	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter hereby represents and warrants further that:
  
	
  
 
  	
  
 
  
	
  
(i)
  	
  
 
  	
  
It   has furnished to the Administrative Agent its balance sheet and statement of   income, stockholders’ equity and cash flows as of and for the fiscal year   ended 2004, certified by its independent public accountants. Such financial   statements are complete and correct, and fairly present the Exporter’s   financial condition and the results of its operations and cash flows as of   such dates and for such periods in accordance with Brazilian GAAP. Since   December 31, 2004 there has been no development or event that has had or   could reasonably be expected to have a Material Adverse Effect.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(ii)
  	
  
 
  	
  
Other   than the approval of the Central Bank, which will be obtained as per Section   8(a)(ii), no authorisation or approval or other action by, and no notice to   or filing with, any Governmental Authority or regulatory body is required for   the due execution, delivery and performance of this Prepayment Agreement   (except that the Exporter shall have to enter into an exchange contract with   a bank authorised to operate in the exchange market in Brazil whenever it   shall pay interest hereunder) or any of the other Advance Documents.
  

15

	
  
(iii)
  	
  
 
  	
  
Its   obligations evidenced by this Prepayment Agreement and the Advance Documents   to which it is a party are its direct and unconditional obligations, and rank   in priority of payment and in all other respects at least pari passu with all   its other similarly secured and unsubordinated indebtedness, subject to   statutorily preferred exceptions.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(iv)
  	
  
 
  	
  
It   is not in default under or with respect to any agreement, instrument or   undertaking to which it is a party or by which it or any of its property or   assets are bound which default would have or cause a Material Adverse Effect.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
(v)
  	
  
 
  	
  
Neither   it nor any of its property or assets has any immunity (sovereign or   otherwise) from jurisdiction of any court or from any legal process (whether   through service or notice, attachment prior to judgement, attachment in aid   of execution, execution or otherwise) under the laws of the jurisdiction of   its organisation, except for public concessions.
  
	
   
  	
  
 
  	
  
 
  
	
  
(vi)
  	
  
 
  	
  
Under   the laws of Brazil in force at the date hereof, it is not necessary that this   Prepayment Agreement or the Promissory Note be filed, recorded or enrolled   with any court or any other authority in Brazil or that any stamp,   registration or similar tax be paid on or in relation to this Prepayment   Agreement or the Promissory Note; except that a certified translation into   Portuguese of this Agreement and the Promissory Note is required to be filed   with a competent Registry of Deeds in Brazil in order to ensure the legality,   validity and binding effect of this Prepayment Agreement and the Promissory   Note;
  

Section 10.     Affirmative Covenants

Each of the Exporter and the Guarantor covenant and agree that, so long as any part of the Advance is outstanding it will:

	
  
(a)
  	
  
Furnish   to the Administrative Agent (i) upon demand, but not earlier than 120 days   after the end of each fiscal year, its consolidated and, if available,   consolidated balance sheet, as of the end of its fiscal year, and the related   statement of earnings, shareholders’ equity and changes in financial   condition prepared in accordance with Brazilian GAAP, in each case setting   forth in comparative form the figures for the previous fiscal year, and   certified by independent public accountants of recognised international   standing; (ii) promptly after it knows that any Event of Default has   occurred, however not later than 20 days after such occurrence, a certificate   from a duly authorised officer notifying the Lenders  as to the occurrence of such Event of   Default, describing the same in reasonable detail and describing the actions   that it proposes to take with respect thereto; (iii) immediately after the   commencement thereof, notice in

writing of all actions, suits and proceedings   before any court or governmental agency or instrumentality of any   jurisdiction which, if determined adversely to it, will have a Material   Adverse Effect; and (iv) such other publicly available information with   respect to its business, properties or its condition or operations, financial   or otherwise, as the Lenders  may from   time to time reasonably request.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
Keep   proper books of record and account in which full, true and correct entries in   conformity with Brazilian GAAP and the requirements of applicable law shall   be made of all dealings and transactions in relation to its business.
  

16

	
  
(c)
  	
  
Obtain,   comply with the terms of and do all that is necessary to maintain in full   force and effect all authorisations, approvals, licenses and consents   required in or by the laws and regulations of Brazil to enable it lawfully to   enter into and perform its obligations under this Prepayment Agreement, the   Promissory Note and the Export Agreements or to ensure the legality,   validity, enforceability or admissibility thereof in evidence in Brazil;
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
Promptly   upon receipt of the Advance, enter into and perform its obligations under the   currency exchange agreement, on terms and subject to conditions approved by   the Administrative Agent, preferably with Banco Santander Brasil S.A.   pursuant to which the Exporter sells the dollars represented by the Advance   to, and receives Brazilian currency in respect thereof from, the bank   responsible for the currency exchange agreement (Banco Santander Brasil S.A.   or otherwise a third financial institutions authorised by the Central Bank)   and procure that such currency exchange agreement is promptly registered as a   “Pagamento Antecipado de Exportação” with the Central Bank;
  
	
   
  	
  
 
  
	
  
(e)
  	
  
Comply   with the requirements of all applicable laws, rules, regulations and orders   of Governmental Authorities; and take all necessary actions in order to   obtain and maintain in full force and effect all such governmental   authorisations, approvals and consents as may be required for it to comply   with its obligations under this Prepayment Agreement and the other Advance   Documents.
  
	
  
 
  	
  
 
  
	
  
(f)
  	
  
Continue   to engage in its existing Business and preserve, renew and keep in full force   and effect its corporate existence and take all reasonable action to maintain   all rights, privileges and franchises necessary or desirable in the normal   conduct of its business, and comply with all contractual obligations binding   on it and its property.
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
Take   any and all actions necessary so that its obligations under the Advance   Documents to which it is a party shall at all times rank at least pari passu   in priority of payment and in all other respects with all present and future   similarly secured and unsubordinated indebtedness, subject to statutorily   preferred exceptions.
  

Section 11.     Negative Covenants

Each of the Exporter and the Guarantor covenant and agree with the Administrative Agent and the Lenders that, so long as any part of the Advance is outstanding, it will not:

	
  
(a)
  	
  
enter   into any transaction of merger, amalgamation or consolidation, or liquidate,   wind up or dissolve itself (or suffer any liquidation or dissolution), or   sell, transfer, lease or otherwise dispose of (in one transaction or in a   series of transactions) all or substantially all of its assets; provided   that:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(i)
  	
  
it   may merge or consolidate with or into, or sell or transfer all or   substantially all of its assets to, any other Person that is organised in an   OECD Country (or, if not an OECD Country, its current jurisdiction of   organisation) if, immediately after giving effect thereto:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(B)
  	
  
(1)   with respect to any merger or consolidation, it is the surviving Person or,   if not, the surviving Person has validly assumed its obligations under the   Advance Documents to which it is a party, or (2) with respect to a sale,   transfer, lease or other disposition of all or substantially all of its   assets, the Person to whom the assets have been sold, transferred, leased or   otherwise disposed has validly assumed all obligations under the Advance   Documents to which the transferor is a party (which assumption may constitute   a novation of such obligations under applicable law); provided that, with   respect to both clauses (1) and (2): with respect to any such transaction by   the Exporter, the Guarantor owns a majority of the Voting Stock of the   surviving Person and has the power to direct or cause the direction of the   management and policies of such surviving Person,
  

17

	
  
 
  	
  
 
  	
  
(C)
  	
  
no   Event of Default or event that (with notice, lapse of time or both) would   become an Event of Default (including under Section 12(m) or resulting from a   breach of Section 10(d)) exists or would exist immediately after such merger,   consolidation, sale, transfer, lease or other disposition;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(D)
  	
  
the   Administrative Agent shall have received any other opinions, evidence of   security interest filings and other documents or evidence as it may   reasonably request in connection therewith;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(E)
  	
  
to   the extent reasonably requested by the Administrative Agent, the Advance   Documents shall have been amended (or amended and restated) to reflect such   merger, consolidation, sale, transfer, lease or other disposition.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(F)
  	
  
Notwithstanding   the foregoing clauses (A)-(D), the Net Debt to EBITDA Ratio of any Surviving   Entity shall not exceed 3.00 as of the date of consummation of such merger,   consolidation, sale, transfer, lease or other disposition.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)
  	
  
the   Exporter may be merged into the Guarantor, in which case the Financial   Transaction Registration (“Registro de Operações Financeiras – ROF”) issued   by Central Bank of Brazil shall have to be amended to reflect such merger.
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iii)
  	
  
the   Guarantor may be merged into the Exporter, in which case the Financial   Transaction Registration (“Registro de Operações Financeiras – ROF”) issued   by Central Bank of Brazil shall have to be amended to reflect such merger.
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iv)
  	
  
it   may sell, lease, transfer or otherwise dispose of obsolete or worn-out   property or equipment no longer used or useful in its business and any   inventory or other assets sold or disposed of in the ordinary course of its   business, and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(v)
  	
  
it   may sell or otherwise transfer Goods and other assets to the Exporter or the   Guarantor, as the case may be, in the manner contemplated in the Advance   Documents.
  
	
   
  	
  
 
  	
  
 
  
	
  
(b)
  	
  
Enter   into any transaction or series of related transactions with any Affiliate   thereof (other than its wholly-owned Subsidiaries), other than in the   ordinary course of their respective businesses and on terms and conditions   substantially as favourable to it as would reasonably be obtained at that   time in a comparable arm’s -length transaction with a Person other than such   Affiliate. Notwithstanding the foregoing, this provision shall not apply to:   (a) any loan or similar financial transaction (or series of related financial   transactions) entered into for the sole purpose of performing cash management   or other financial management functions of an Affiliate or Subsidiary as the   case may be and/or (b) tax allocation agreements entered into from time to   time between an Affiliate or a Subsidiary as the case may be provided always   none of the foregoing shall materially impair the ability of the Exporter   and/or Guarantor to comply with
their respective obligations under this   Prepayment Agreement.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
Except   as provided herein, assign, pledge or allow any form of security on Export   Receivables  that are to be assigned   to the Administrative Agent on behalf of the Lenders under this Prepayment   Agreement for the repayment of the Advance.
  

18

Section 12.     Events of Default

If one, or more, of the following events (each an “Event of Default”) shall occur and be continuing:

	
  
(a)
  	
  
The   Exporter shall fail to make payment of any amount of principal due hereunder;
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter shall fail to make payment, due to administrative reasons, of any   Interest, fees or other amounts due hereunder (whether at stated maturity, at   acceleration or otherwise), after the expiry of three (3) Banking Days after   the date the same becomes due; or
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
Any   representation, warranty or certification made herein (or any modification or   supplement hereto) by the Exporter or the Guarantor shall prove to have been   false or misleading in any material respect as of the time made or furnished,   and is not cured within 22 (twenty-two) Banking Days upon notice of the   Administrative Agent;
  
	
  
 
  	
  
 
  
	
  (d)
  	
  
The   Exporter ceases to be involved in (i) the business of producing pulp and   paper and/or other related products and (ii) other lines of business that are   related or incidental to the business described under this Prepayment   Agreement;
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
The   Exporter, the Paying Agent or the Guarantor shall default in the performance   of any other obligation under this Prepayment Agreement and such default   continue unremedied for a period of 10 Banking Days after notice thereof to   the Exporter by the Administrative Agent, provided always that the Guarantee   shall always be legally binding and effective on the Guarantor;
  
	
  
 
  	
  
 
  
	
  
(f)
  	
  
The   Exporter shall admit in writing its inability to be generally able to pay its   debts;
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
The   Guarantor shall admit in writing its inability to be generally able to pay its   debts and the Exporter shall not have designated a substitute or replacement   thereof reasonably acceptable to the Administrative Agent within 22   (twenty-two) Banking Days after notice thereof to the Exporter by the   Administrative Agent;
  
	
   
  	
  
 
  
	
  
(h)
  	
  
The   Paying Agent shall admit in writing its inability to be generally able to pay   its debts and the Exporter shall not have designated a substitute or   replacement thereof reasonably acceptable to the Administrative Agent within   22 (twenty-two) Banking Days after notice thereof to the Exporter by the   Administrative Agent;
  
	
  
 
  	
  
 
  
	
  
(i)
  	
  
The   Exporter shall (i) apply for or consent to the appointment of, or the taking   of possession by, a receiver, custodian, trustee, examiner or liquidator of   itself or of all, or substantially all, its respective property or assets,   (ii) make a general assignment for the benefit of creditors, (iii) file a   petition seeking to take advantage of any law relating to bankruptcy,   insolvency, liquidation, dissolution, arrangement or winding-up, or composition   or readjustment of its respective debts, or (iv) take any corporate action   for purpose of effecting any of the foregoing;
  
	
  
 
  	
  
 
  
	
  
(j)
  	
  
The   Paying Agent shall (i) apply for or consent to the appointment of, or the   taking of possession by, a receiver, custodian, trustee, examiner or   liquidator of itself or of all or substantially all its respective property   or assets, (ii) make a general assignment for the benefit of creditors, (iii)   file a petition seeking to take advantage of any law relating to bankruptcy,   insolvency, liquidation, dissolution, arrangement or winding-up, or   composition or readjustment of its respective debts, or (iv) take any   corporate action for purpose of effecting any of the foregoing and the   Exporter shall not have designated a substitute or replacement thereof   reasonably acceptable to the Lenders within 22 (twenty-two) Banking Days   after notice thereof to the Exporter by the Administrative Agent;
  

19

	
  
(k)
  	
  
The   Guarantor shall (i) apply for or consent to the appointment of, or the taking   of possession by, a receiver, custodian, trustee, examiner or liquidator of   itself or of all or substantially all its respective property or assets, (ii)   make a general assignment for the benefit of creditors, (iii) file a petition   seeking to take advantage of any law relating to bankruptcy, insolvency,   liquidation, dissolution, arrangement or winding-up, or composition or   readjustment of its respective debts, or (iv) take any corporate action for   purpose of effecting any of the foregoing and the Exporter shall not have   designated a substitute or replacement thereof reasonably acceptable to the   Administrative Agent within 22 (twenty-two) Banking Days after notice thereof   to the Exporter by the Administrative Agent;
  
	
  
 
  	
  
 
  
	
  
(l)
  	
  
A   proceeding or case shall be commenced, without the application or consent of   the Exporter , in any court of competent jurisdiction, seeking (i) its   liquidation, dissolution, arrangement or winding-up, or the composition or   readjustment of its respective debts, (ii) the appointment of a receiver,   custodian, trustee, examiner, liquidator or the like of the Exporter, the   Paying Agent or the Guarantor of all or substantially all of its respective   property or assets, or (iii) similar relief in respect of the Exporter, the Paying   Agent or the Guarantor under any law relating to bankruptcy, insolvency,   winding-up, or composition or adjustment of debts, and such proceeding or   case shall continue undismissed, or any order, judgement or decree approving   or ordering any of the foregoing shall be entered and continue unstayed and   in effect, for a period of 44 (forty-four) Banking Days;
  
	
   
  	
  
 
  
	
  
(m)
  	
  
Any   default or event of default shall occur or be continuing under any agreement,   instrument or other document of the Exporter or the Guarantor evidencing   External Indebtedness (as defined below) in excess of Fifty Million Dollars   (US$50,000,000.00) (or its equivalent in other currencies) and such default   or event of default causes the acceleration of such External Indebtedness and   shall not have been waived.  For   purposes of this paragraph (h), “External Indebtedness” shall mean   indebtedness for borrowed money which is payable or may be paid (i) in a   currency other than the lawful currency of Brazil an (ii) to a Person   resident or having its principal place of business outside of Brazil;
  
	
  
 
  	
  
 
  
	
  
(n)
  	
  
Any   judgement or order from which no further appeal is permissible under   applicable law for the payment of money aggregating in excess of Fifty   Million Dollars (US$50,000,000.00) (or its equivalent in another currency)   shall be rendered against the Exporter or the Guarantor and such judgement or   order shall continue unsatisfied and in effect for a period of 30 (thirty)   calendar days;
  
	
  
 
  	
  
 
  
	
  
(o)
  	
  
A   Change of Control shall occur;
  
	
   
  	
  
 
  
	
  
(p)
  	
  
An   event shall occur which results in a Material Adverse Effect;
  
	
  
 
  	
  
 
  
	
  
(q)
  	
  
The   Debt Service Coverage Ratio as of the end of any fiscal quarter of the   Exporter shall be less than 1.30 (it being understood that such ratio shall   not be calculated until the delivery of the financial statements referred to   in Section 10, but that any related Event of Default shall be considered to   have begun as of the last day of the relevant fiscal quarter);
  
	
  
 
  	
  
 
  
	
  
(r)
  	
  
The   Net Debt to EBITDA Ratio as of the end of any fiscal semester of the Exporter   shall exceed 3.00 (it being understood that such ratio shall not be   calculated until the delivery of the financial statements referred to in   Section 10, but that any related Event of Default shall be considered to have   begun as of the last day of the relevant Fiscal Semester);
  

20

	
  (s)
  	
  
The   Debt to Total Capitalisation Ratio as of the end of any fiscal semester of   the Exporter shall exceed 0.70 (it being understood that such ratio shall not   be calculated until the delivery of the financial statements referred to in   Section 10, but that any related Event of Default shall be considered to have   begun as of the last day of the relevant Fiscal Semester);
  
	
  
 
  	
  
 
  
	
  
(t)
  	
  
For   any two consecutive Measurement Periods    (or four during the life of the Advances), failure to achieve the   Coverage Ratio;
  

then, in such event, the Administrative Agent may by notice to the Exporter and the Guarantor, declare the Advance then outstanding, the accrued Interest on the Advance and all other amounts payable by the Exporter hereunder to be, whereupon the same shall become, forthwith due and payable, without presentment, demand, protest or other formalities of any kind, all of which are hereby expressly waived by the Exporter. Notwithstanding the foregoing, any event referred to in clause (a) or (b) above existing for a period of up to 5 (five) Banking Days after the applicable grace period will not constitute an Event of Default if such delay or failure could not have been prevented by the exercise of reasonable diligence by the Exporter or the Guarantor, and such delay or failure was caused by an act of God, riot, an act of war, terrorism, epidemic, flood, weather, landslide, fire, earthquake, electrical outage or similar causes.

Section 13.     The Administrative Agent

Each of the Lenders hereby irrevocably confirms the appointment of the Administrative Agent as its agent and authorises the Administrative Agent to take such actions on its behalf, and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto.

	
  
(a)
  	
  
The   bank serving as the Administrative Agent hereunder shall have the same rights   and powers in its capacity as a Lender as any other Lender and may exercise   the same as though it were not the Administrative Agent, and such bank may   accept deposits from, lend money to and generally engage in any kind of   business with the Exporter or any Subsidiary or Affiliate thereof as if it   were not the Administrative Agent hereunder.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Administrative Agent shall not have any duties or obligations except those   expressly set forth herein or in any other loan documents to which it is a   party.  Without limiting the   generality of the foregoing:  (i) the   Administrative Agent shall not be subject to any fiduciary or other implied   duties, regardless of whether an Event of Default has occurred and is   continuing; (ii) the Administrative Agent shall not have any duty to take any   discretionary action or exercise any discretionary powers, except   discretionary rights and powers expressly contemplated hereby that the   Administrative Agent is required to exercise in writing by the Majority   Lenders; and (iii) except as expressly set forth herein, the Administrative   Agent shall not have any duty to disclose, and shall not be liable for the   failure to disclose, any information relating to the Exporter, the Guarantor   or any of its Subsidiaries that is communicated to or
obtained by the bank   serving as Administrative Agent.  The   Administrative Agent shall not be liable for any action taken or not taken by   it with the consent or at the request of the Majority Lenders or in the   absence of its own gross negligence or wilful misconduct.  The Administrative Agent shall be deemed   not to have knowledge of any Event of Default unless and until written notice   thereof is given to the Administrative Agent by the Exporter, the Guarantor   or a Lender, and the Administrative Agent shall not be responsible for or   have any duty to ascertain or inquire into (A) any statement, warranty or   representation made in or in connection with this Prepayment Agreement and   any other Advance Document, (B) the contents of any certificate, report or   other document delivered hereunder or in connection herewith, 
  

21

	
  
 
  	
  
(C)   the performance or observance of any of the covenants, agreements or other   terms or conditions set forth herein, (D) the validity, enforceability,   effectiveness or genuineness of this Prepayment Agreement or any Advance   Document or any other agreement, instrument or document, or (E) the   satisfaction of any condition set forth hereunder or elsewhere herein, other   than to confirm receipt of items expressly required to be delivered to the   Administrative Agent.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
The   Administrative Agent shall be entitled to rely upon, and shall not incur any   liability for relying upon, any notice, request, certificate, consent,   statement, instrument, document or other writing reasonably believed by it to   be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely   upon any statement made to it orally or by telephone and reasonably believed   by it to be made by the proper Person, and shall not incur any liability for   relying thereon.  The Administrative   Agent may consult with legal counsel (who may be counsel for the Exporter or   the Guarantor), independent accountants and other experts selected by it, and   shall not be liable for any action taken or not taken by it in accordance   with the advice of any such counsel, accountants or experts other than   through wilful misconduct and/or gross negligence.
  
	
   
  	
  
 
  
	
  
(d)
  	
  
The   Administrative Agent may perform any and all of its duties and exercise its   rights and powers by or through any one or more sub-agents appointed by the   Administrative Agent.  The exculpatory   provisions of the preceding paragraphs shall apply to any such sub-agent of   the Administrative Agent, and shall apply to their respective activities in   connection with the syndication of the credit facilities provided for herein   as well as activities as Administrative Agent.
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
Subject   to the appointment and acceptance of a successor Administrative Agent as   provided in this paragraph, the Administrative Agent may resign at any time   by giving sixty (60) days written notice to the Lenders and the   Exporter.  Upon any such resignation,   the Majority Lenders shall have the right, in consultation with the Exporter,   to appoint a successor.  If no   successor shall have been so appointed by the Majority Lenders and shall have   accepted such appointment within sixty (60) days after the retiring   Administrative Agent gives notice of its resignation, then the retiring   Administrative Agent may, on behalf of the Lenders, appoint a successor   Administrative Agent.  Upon the   acceptance of its appointment as Administrative Agent hereunder by a   successor, such successor shall succeed to and become vested with all the   rights, powers, privileges and duties of the retiring Administrative Agent,   and the retiring
Administrative Agent shall be discharged from its duties and   obligations hereunder. After the Administrative Agent’s resignation   hereunder, the provisions of this Article hereof shall continue in effect for   the benefit of such retiring Administrative Agent and its sub-agents in   respect of any actions taken or omitted to be taken by any of them while it   was acting as Administrative Agent.
  
	
   
  	
  
 
  
	
  
(f)
  	
  
Each   Lender acknowledges that it has, independently and without reliance upon the   Administrative Agent or any other Lender and based on such documents and   information as it has deemed appropriate, made its own credit analysis and   decision to enter into the Advance established pursuant to this Prepayment   Agreement. Each Lender also acknowledges that it will, independently and   without reliance upon the Administrative Agent or any other Lender and based   on such documents and information as it shall from time to time deem   appropriate, continue to make its own decisions in taking or not taking   action under or based upon this Prepayment Agreement and any other Advance Document,   any related agreement or any document furnished hereunder or thereunder.
  

22

Section 14.     Relationship between the Lenders

	
  
(a)
  	
  
The   participation in the Advance hereunder shall be for each of the Lenders’ own   account and risk. Each Lender shall bear the risks associated with its   portion of the Advance under this Prepayment Agreement, including, without   limitation, that the Exporter may fail to make payments as required pursuant   to the terms of this Prepayment Agreement and any other Advance Document.
  
	
  
 
  	
  
 
  
	
  (b)
  	
  
Any   action to be taken by the Lenders hereunder shall be taken by the   Administrative Agent, upon written request of the Majority Lenders.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
Each   Lender has reviewed the text of each document evidencing the Advance, including   this Prepayment Agreement and any other Advance Document. Each Lender   acknowledges and agrees that no exercise of the rights and benefits provided   to the parties in any other loan document shall impose any rights or   obligations upon any other Lenders thereof other than are expressly set forth   herein or therein.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
Each   Lender will contribute to its pro rata participation of any and all costs,   expenses and disbursements incurred or made by the Administrative Agent and   any other Lender in protection of rights granted pursuant to this Prepayment   Agreement or any other Advance Document and enforcing any remedies hereunder   or thereunder. Any costs, expenses or disbursements incurred by a Lender   pursuant to the immediately preceding sentence must be approved by the   Majority Lenders prior to any incidence by any Lender in order to be subject   to contribution pursuant thereto.
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
Each   Lender agrees to indemnify and hold the Administrative Agent harmless, to the   extent of each Lender’s pro rata participation, from any and all claims   (including, without limitation, any tax claims), losses, liabilities, costs   and expenses (including legal fees and disbursements) suffered or incurred by   the Administrative Agent in connection with the Advance or the transactions   contemplated by this Prepayment Agreement and any other Advance Document   (other than those arising out of Administrative Agent’s own gross negligence   or wilful misconduct).
  
	
   
  	
  
 
  
	
  
(f)
  	
  
In   the event the Administrative Agent makes any payment to a Lender and either   does not receive such payment promptly from the Exporter thereafter or for   any reason amounts received by the Administrative Agent are rescinded or must   otherwise be returned by the Administrative Agent, each Lender will   immediately repay to the Administrative Agent, upon request, such Lender’s   pro rata participation of such amount not received or so returned or paid.
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
Anything   in this Prepayment Agreement to the contrary notwithstanding, in no event   shall the Administrative Agent or any Lender be liable under or in connection   with this Prepayment Agreement or any other loan document for indirect,   special, incidental, punitive or consequential losses or damages of any kind   whatsoever, including but not limited to lost profits, whether or not foreseeable,   even if the Administrative Agent or any Lender has been advised of the   possibility thereof and regardless of the form of action in which such   damages are sought.
  

Section 15.     Fees

	
  
(a)
  	
  
Up-front-Participation-Fee.   The Exporter shall pay to the Administrative Agent (for the benefit of the   Lenders) the Up-front-Participation Fee in United States Dollars, in the   amount and at the times agreed in the Offer Letter dated 6 June, 2005.
  

23

	
  
(b)
  	
  
Arrangement   Fee. The Exporter shall pay to the Lead Arranger an arrangement fee in the   amount and at the times agreed in the Offer Letter dated 6 June, 2005.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
Administrative   Agent Fee: The Exporter shall pay to the Administrative Agent a fee of   US$10,000.00 per annum as long as any amounts due hereunder remain   outstanding. Payment of the Administrative Agent Fee shall occur (a) on the   date of the first Advance is made and each anniversary thereafter, provided   no such payment shall be made on the final anniversary of said Advance.
  

Section 16.     Costs and Expenses 

	
  
(a)
  	
  
If   the Exporter makes any payment of principal of the Advance (excluding as a   result of the provision set forth in Section 7 hereof and as set forth in   Section 5 (g)) on any day, other than the last day of the Interest Period   applicable thereto, or fails to borrow the Advance on the date specified   therefore in the notice to the Administrative Agent pursuant to Section 3   hereof, the Exporter shall reimburse the Lenders, on demand, for any   financial loss, excluding loss of anticipated profits, incurred by it as a   result of the timing of such payment or such failure, or as a result of   liquidating or employing deposits from third parties, provided that the   Administrative Agent shall have delivered to the Exporter a certificate as to   the amount of such loss incurred by the Lenders , which certificate shall be   conclusive in the absence of manifest error.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
The   Exporter agrees to reimburse the Lenders on demand for all reasonable and   documented costs and expenses (including without limitation legal fees and   registration costs) incurred by the Lenders in connection with the   preparation and execution of the Advance Documents, subject to a maximum   amount of US$10,000.00 (ten thousand US Dollars).
  

Section 17.     Governing Law and Jurisdiction

	
  
(a)
  	
  
This   Prepayment Agreement shall be governed by and construed in accordance with   English Law.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter, the Paying Agent and the Guarantor irrevocably agree for the   exclusive benefit of the Administrative Agent and the Lenders that the courts   of England shall have jurisdiction to hear and determine any suit action or   proceeding, and to settle any disputes, which may arise out of in connection   with this Prepayment Agreement and for such purposes you hereby irrevocably submit   to the jurisdiction of such courts.
  
	
  
 
  	
  
 
  
	
  (c)
  	
  
Nothing   contained in this Section shall limit the right of the Administrative and the   Lenders to take proceedings against the Exporter or the Guarantor, in any   other court of competent jurisdiction, nor shall the taking of any such   proceedings in one or more jurisdictions preclude the taking of proceedings   in any other jurisdiction, whether concurrently or not (unless precluded by   applicable law).
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
The   Exporter, the Guarantor and the Paying Agent waive any objection which it may   have now or in the future to the courts of England being nominated for the   purpose of Section 17 (b) above and agree not to claim that any such court is   not a convenient or appropriate forum.
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
Each   of the Exporter, Guarantor and Paying Agent hereby authorises and appoints   Law Debenture Corporate Services Limited of 100 Wood Street, Fifth Floor,   London EC2V 7EX, England (or such other person being a firm of solicitors or   authorised institution in England as it may substitute by notice to the   Administrative Agent) to accept service of all legal process arising out of   or connected with this Prepayment Agreement.    
  

24

	
  
 
  	
  
Service   on such person(s) (or substitute) shall be deemed to be service on the   Exporter, Guarantor or the Paying Agent whether or not process is forwarded   to or received by it. Except upon such a substitution, the Exporter and the   Guarantor undertakes not to revoke any such authority or appointment, at all   times to maintain an agent for service of process in England and, if any such   agent ceases for any reason to be an agent for this purpose, forthwith to   appoint another agent and advise the Administrative Agent accordingly.   Failing such appointment, the Administrative Agent shall be entitled by notice   to the Exporter to appoint such a replacement agent to act on behalf of the   Exporter, Guarantor and the Paying Agent (as the case may be).
  

Section 18.     Successors and Participations

	
  
(a)
  	
  
This   Prepayment Agreement and the Promissory Note shall be binding on the   Exporter, the Guarantor, the Paying Agent, and its respective successors and   assigns and shall inure to the benefit of the Lenders and its successors and   assigns.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
Except   as provided herein, neither the Exporter, nor the Paying Agent nor the   Guarantor may assign or otherwise transfer all or any part of its respective   rights or obligations under this Prepayment Agreement and the Promissory Note   without the prior written consent of the Lenders as provided to the   Administrative Agent.
  
	
   
  	
  
 
  
	
  
(c)
  	
  
The   Lenders may: (i) assign in whole and in part its rights and obligations under   this Prepayment Agreement and the Promissory Note(s), provided, however, that   such assignment (A) does not increase the overall cost hereunder to the   Exporter, in any way whatsoever, and (B) is consented by the Exporter in   writing (such consent not to be unreasonably withheld); provided, however   that no such consent is required in the event  (x) the Lender assigns its rights and obligations to another   branch of the Lender or any entity directly or indirectly controlled by,   controlling or under common control with, the Lender, or (y) at any time that   an Event of Default of payment as described in Section 12 (a) has occurred   and is continuing; (ii) sell participations in, all or any part of this   Prepayment Agreement and the Promissory Note(s) to another bank or other   entity without the prior written consent of the Exporter, provided that the
Administrative Agent shall advise the Exporter of each such sale of   participations within five Banking Days from such sale.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
For   the purposes hereof, (a) “Assignment Agreement” shall mean any agreement   entered into by the buyer (the “Assignee”) of specified rights and   obligations of the seller (the “Assignor”) in respect of this Prepayment   Agreement and the Promissory Note(s), and whereby the Assignee will   substitute the Assignor as a Lender and (b) a “Participation” shall mean any   agreement entered into by the Lender whereby the Lender sells to any third   party (a “Participant”) its interest in all or any part of this Prepayment   Agreement and the Promissory Note(s); provided, however, that in any such   case the contractual relation between the parties hereto shall not be   affected, and the Participant itself shall have no right to directly enforce   this Prepayment Agreement and the Promissory Note(s) against the Exporter or   the Guarantor.
  

Section 19.     Indemnification

The Exporter, the Guarantor and the Paying Agent agree to indemnify and hold harmless the Administrative Agent, the Lenders and its officers, directors, employees, agents and representatives (together, the “Indemnified Parties”) from and against any and all liabilities, losses, damages, penalties, actions, judgements, suits, costs, expenses (including the reasonable documented fees and expenses of external counsels) or disbursements of any kind whatsoever (together, “Liabilities”) which may at any time (including following the repayment of the Advance) be imposed upon, incurred by or asserted against the Indemnified Parties as a result of, relating to, or arising out of any of the Advance Document or any document contemplated by or referred to herein or the transactions contemplated hereby or any action taken or omitted by the Indemnified Parties under or in connection with any of the foregoing and that are duly evidenced by the Lenders,
provided, however, that the Liabilities do not result directly from the gross negligence or wilful misconduct of the relevant Indemnified Party.

25

Section 20.     Miscellaneous

	
  
(a)
  	
  
Any   amendment or waiver of any provision of this Prepayment Agreement, or consent   to any departure by the parties herefrom must be in writing and signed by the   Exporter, the Paying Agent, the Guarantor, the Administrative Agent, the   Lenders and the Administrative Agent. Such waiver or consent shall be   effective only in the specific instance for which it is stipulated. Any   failure or delay by the parties in exercising their rights hereunder shall   not be deemed a waiver and shall not preclude the parties from the exercise   of their rights.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
All   notices, designations, consents, offers, acceptances, or any other   communications provided pursuant to this Prepayment Agreement shall be given   in writing and sent, to the Administrative Agent, the Paying Agent, the   Guarantor and the Exporter at the following addresses or to such other   addresses as may be designated in writing from time to time by the parties:
  

If to the Lead Arranger:

BANCO SANTANDER CENTRAL HISPANO, S.A.
Attn: Olga Valverde
Address: 100 Ludgate Hill
London EC4M 7NJ England
Tel: 00-44-207-332-7747
Fax: 00-44-207-332-7839
e-mail: ovalverde.londres@sinvest.es

If to each of the Lenders:
To such Lender’s address as set forth in such Lender’s administrative details specified on Schedule 2 attached hereto together with its successors and permitted assigns pursuant to the Section 18 above.

If to the Administrative Agent:
BANCO SANTANDER CENTRAL HISPANO S.A.
Attn: Jim Inches
Address: 100 Ludgate Hill
London EC4M 7NJ England

Tel: 00-44-207-3327781

Fax: 00-44-207-3327421
e-mail: jinches.londres@sinvest.es

26

If to the Exporter: 
Attn: Mr. J. J. Trigo
Address: 1357 Alameda Santos
Sao Paulo, Brazil
Tel.: +55-11-3269-4165
Fax: +55-11-3269-4068
e-mail: trigojj@vcp.com.br

If to the Guarantor:
Attn: Mr. J. J. Trigo
Address: 1357 Alameda Santos
Sao Paulo, Brazil
Tel.: +55-11-3269-4165
Fax:   +55-11-3269-4068
e-mail: trigojj@vcp.com.br

If to the Paying Agent:
Attn: Mr. J. J. Trigo
Address: Kaya W.F.G. (Jambi)
Mensing, 14, Curaçao
Tel.: +55-11-3269-4165
Fax: +55-11-3269-4068
 e-mail: trigojj@vcp.com.br 

All such notices and communications shall be deemed given:  (i) upon delivery if delivered by hand to the addresses provided in this Section 20(b); (ii) upon receipt if delivered by facsimile transmission to the number provided herein; or (iii) five (5) Banking Days after the date of deposit in the courier agency if delivered by reputable courier, return receipt requested if available, postage prepaid.

	
  
(c)
  	
  
This   Prepayment Agreement sets forth the entire understanding of the parties with   respect to the subject matter hereof and supersedes all prior agreements and   understandings between the parties with respect thereto.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
The   various provisions of this Prepayment Agreement are severable from each   other. In the event that any provision in this Prepayment Agreement shall be   held invalid or unenforceable by a court of competent jurisdiction, the   remainder of this Prepayment Agreement shall be fully effective, operative   and enforceable.
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
No   party hereto shall be liable for any delay in performance of any obligation   hereunder by reason of any act or circumstance beyond the control of such   Party due to the occurrence of a force majeure.
  
	
   
  	
  
 
  
	
  
(f)
  	
  
The   obligations of the Exporter, Paying Agent and the Guarantor under Sections 7,   19, and 21 hereof shall survive the repayment in full of the Advance.
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
This   Prepayment Agreement may be executed in any number of counterparts, and this   has the same effect as if the signatures on the counterparts were on a single   copy of this Agreement.
  

27

Section 21.     Guarantee

	
  
(a)
  	
  
In   consideration of the Lenders entering into the Prepayment Agreement with the   Exporter (or for other valuable consideration receipt of which is hereby   acknowledged), the Guarantor, as primary obligor unconditionally and   irrevocably, jointly and severally, (i) guarantees the Lenders, on first   written demand, by way of continuing security, the payment when due of all   amounts payable by the Exporter or the Paying Agent under the Prepayment   Agreement and other Advance Document and (ii) agrees that if and each time   that the Exporter or the Paying Agent shall fail to make any payments as and   when the same become due under the Advance Document, the Guarantor will on   first written demand (without requiring the Lenders first to take steps   against the Exporter or the Paying Agent or any other person) pay to the   Lenders such amounts (as to which the certificate of the Lenders shall in the   absence of manifest error be conclusive) in the currency in

which such   amounts are payable by the Exporter or the Paying Agent, free of all tax,   charges or deductions whatsoever together with Interest thereon from the date   of demand until the date of payment at the rate specified in the Prepayment   Agreement. If deductions must be made by law then the Guarantor will pay such   additional amounts as may be necessary to ensure that the Lenders receive the   full amount provided for.
  
	
   
  	
  
 
  
	
  
(b)
  	
  
The   obligations of the Guarantor herein contained shall be in addition to and   independent of every other security, if any, that the Lenders may at any time   hold in respect of any obligation of the Obligors under the Prepayment   Agreement.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
The   obligations of the Guarantor hereunder constitute continuing obligations   notwithstanding any intermediate payment or satisfaction of any part of any   sum or sums of money owed by the Obligors under the Advance Document and   shall not be affected by any matter that might operate to affect such   obligations including without limitation (i) any time or indulgence granted   to or composition with the Obligors or any other person, (ii) the taking,   variation, renewal or release of, or neglect to perfect or enforce, any   rights, remedies or securities against the Obligors or any other person or   (iii) any unenforceability or invalidity of the Advance Document or any   enforceability or invalidity of any obligations of the Obligors so that this   Guarantee shall be construed as if there were no such unenforceability or   invalidity.
  
	
  
 
  	
  
 
  
	
  
(d)
  	
  
The   Guarantor agrees as a primary obligation to indemnify the Lenders from time   to time on demand from and against any loss incurred by the Lenders as a   result of any of the obligations of the Obligors under the Advance Document   being or becoming void, voidable, unenforceable or ineffective for any reason   whatsoever, whether or not known to the Lenders, the amount of such loss   being the amount which the Lenders would otherwise had been entitled to   recover from the Obligors. The Guarantor will reimburse the Lenders for all   costs incurred by the Lenders in connection with the enforcement of this   Guarantee.
  
	
   
  	
  
 
  
	
  
(e)
  	
  
The   Guarantor warrants that this Guarantee is its legally binding obligation   enforceable in accordance with its terms and that all necessary governmental   consents, authorisations and all other legal requirements for the giving and   implementation of this Guarantee have been obtained.
  
	
  
 
  	
  
 
  
	
  
(f)
  	
  
Until   all amounts which may be or become payable under the Advance Document have   been irrevocably paid in full, the Guarantor shall not by virtue of this   Guarantee be subrogated to any rights of the Lenders or claim in competition   with the Lenders against the Obligors or any other person.
  
	
  
 
  	
  
 
  
	
  
(g)
  	
  
This   Guarantee will remain in full force and effect until full discharge of the   obligations of the Exporter to the Lenders.
  

28

	
  (h)
  	
  
The   rights of the Administrative Agent (for the benefit of each creditor   hereunder or the Promissory Note) shall not be affected, nor shall the   Guarantor be exonerated or discharged from its liabilities assumed hereunder   by time being given to the Exporter or by any other indulgence or concession   to the Exporter granted by the Administrative Agent (for the benefit of each   creditor hereunder or the Promissory Note), by the taking, holding, varying,   non-enforcement or release by the Administrative Agent (for the benefit of   each creditor hereunder or under the Promissory Note) of any rights or   remedies against the Exporter or other person or other guaranty or security   for any of the sums payment of which is guaranteed hereunder or under the   Promissory Note) or by any other indulgence or concession to the Exporter.
  
	
  
 
  	
  
 
  
	
  
(i)
  	
  
Without   conflict of applicable law, the Guarantor waives any and all rights (i) of   preference as provided in Article 366, 827 and 838 of the Brazilian Civil   Code and (ii) to object to be exonerated or discharged from its liabilities   assumed hereunder. [The Guarantor is VCP Exportadora, a Brazilian company and   this clause is present in the USD 102MM deal]
  
	
  
 
  	
  
 
  
	
  
(j)
  	
  
If   the Lenders receive an amount in respect of the Guarantor’s liability under   this Guarantee or if that liability is converted into a claim, proof,   judgement or order in a currency other than the currency (the “Contractual   Currency”) in which the amount is expressed to be payable under Section 5   above:
  
	
   
  	
  
 
  
	
  
 
  	
  
(i)
  	
  
The   Guarantor shall indemnify the Lenders as an independent obligation against   any loss or liability arising as a result of the conversion;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(ii)
  	
  
If   the amount received by the Lenders, when converted into the Contractual   Currency at a market rate in the usual course of its business, is less than   the amount owed in the Contractual Currency, the Guarantor shall forthwith on   demand pay to the Lenders an amount in the Contractual Currency equal to the   deficient amount; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(iii)
  	
  
The   Guarantor shall pay to the Lenders on demand any exchange costs and taxes   payable and reasonably incurred in connection with any such conversion.
  
	
   
  	
  
 
  	
  
 
  
	
  
(k)
  	
  
The   Guarantor irrevocably authorises the Lenders to apply any credit balance to   which the Guarantor is entitled on any account of the Guarantor with the   Lenders in satisfaction of any sum due and payable from the Guarantor to the   Lenders hereunder but unpaid; for this purpose, the Lenders are authorised to   purchase with the moneys standing to the credit of any such account such   other currencies as may be necessary to effect such application.
  

Section 22.     Assignment of Export Agreement 

In consideration of the Lenders entering into this Prepayment Agreement:

	
  
(a)
  	
  
The   Exporter hereby assigns, as of each date that is 60 (sixty) days prior to   each date on which an Instalment, Interest and all amounts due herein, are   due and payable pursuant to the terms and conditions of this Prepayment   Agreement, with full title guarantee and as a continuing security for the   payment of its obligations hereunder (the “Secured Obligation”), an absolute   security interest (“Security Interest”) in a portion of the Exporter’s   rights, interest and remedies with respect to any and all of the Undertakings   (including, but not limited to all of the Exporter’s rights to receive   payment from Importers, including (but not limited to) all of the Exporter’s   future acquired rights to payment under the Export Agreements whether in the   form of a letter of credit or right to title to the Goods or otherwise) which   portion shall have a value not less than the value of such Instalment,   Interest and all
amounts due herein. 
  

29

	
  
 
  	
  
The   Exporter further agrees to execute and deliver to the Administrative Agent   any and all instruments and to issue and deliver such notices and procure   such consents and acknowledgements as shall be necessary or as the   Administrative Agent may deem necessary to perfect the assignment of the   Export Agreement herein contained.
  
	
  
 
  	
  
 
  
	
  
(b)
  	
  
The   Exporter will fully perform all of its material obligations under the Export   Agreements, and will enforce all of its rights and remedies thereunder as it   deems appropriate in its reasonable business judgement; provided, however,   that the Exporter will not take any action or fail to take any action which   would result in a waiver or other loss of any material rights or remedy of   the Exporter thereunder.
  
	
  
 
  	
  
 
  
	
  
(c)
  	
  
The   Exporter will not, without the Administrative Agent’s prior written consent   (which consent shall not be unreasonable withheld), modify, amend,   supplement, compromise, satisfy, release or discharge the Export Agreements,   any person liable directly or indirectly with respect thereto, or any   agreement relating to the Export Agreements.
  
	
   
  	
  
 
  
	
  
(d)
  	
  
The   Exporter will at all times remain liable to observe and perform all of its   duties and obligations under the Export Agreements, and the Lenders’ exercise   of any of its rights with respect to this Prepayment Agreement will not   release the Exporter from any of such duties or obligations. The Lenders are   not obligated to (I) perform or fulfil any of the Exporter’s duties or   obligations under the Export Agreements (II) make any payment under the   Export Agreements, (III) make any inquiry as to the sufficiency of any   payment of property received by it under the Export Agreements or the   sufficiency of performance by any party under the Export Agreements, or (IV)   present or file any claim, or take any action to collect or enforce any   performance or payment of any amounts, or delivery of any property.
  
	
  
 
  	
  
 
  
	
  
(e)
  	
  
Effective   from and after the occurrence of any Event of Default and during the   continuation thereof, the Exporter hereby irrevocably authorises and empowers   the Administrative Agent, on behalf of the Lenders, at the Administrative   Agent’s sole discretion, to assert, either directly or on behalf of the   Exporter any claims the Exporter may then or thereafter have against Importer   with respect to the Undertakings that are subject to this Prepayment Agreement,   in such a manner, as the Administrative Agent may deem proper, to receive and   collect any and all damages, awards and other monies resulting therefrom and   to apply the proceeds therefrom on account of the Secured Obligations,   whether or not then due, in accordance with the terms of the Prepayment   Agreement. The Exporter hereby authorises the Administrative Agent, on behalf   of the Lenders to collect all amounts due to the Exporter under and by virtue   of the Export Agreements
including any future acquired rights to payment   thereunder.
  
	
   
  	
  
 
  
	
  
(f)
  	
  
Power-of-Attorney:   To facilitate the foregoing, the Exporter hereby irrevocably authorises and   empowers the Administrative Agent as its true and lawful attorney at any time   after the occurrence and during the continuance of an Event of Default to (a)   either directly or on behalf of the Exporter, assert any claims and demands   and enforce any rights and remedies as the Exporter may have, from time to   time, with respect to the Undertakings that shall have been assigned to the   Lenders pursuant to Section 22(a), as the Administrative Agent, and the   Lenders may deem proper and (b) receive and collect any and all proceeds,   awards or amounts due to the Exporter in respect of any indemnification   claims under the Secured Obligations in such manner as the Exporter’s true   and lawful attorney to assert, at any time after the occurrence and during   the continuance of an Event of Default, any claims and demands or enforce any   rights and remedies and

collect such proceeds, awards and amounts and to   apply such monies to the Secured Obligations in such manner as the   Administrative Agent, and the Majority Lenders shall elect. This power of   attorney is coupled with an interest and is irrevocable by the Exporter.
  

30

	
  
(g)
  	
  
This   Prepayment Agreement creates a continuing security interest in the   Undertakings and all representations, warranties, and agreements in each   case, as specified in Section 22(a), and such security interest shall   terminate only upon the full and irrevocable payment of all amounts owing to   the Lenders under this Prepayment Agreement; provided that the Lenders have   no other commitment to extend credit or make advance to or for the account of   the Exporter.  At such time, the   Lenders and the Administrative Agent will, at the request of the Exporter,   reassign and redeliver to the Exporter all of its rights hereunder which have   not been sold, which reassignment and redelivery will be without warranty by   or recourse to the Lenders, except as to the absence of any prior assignments   by the Lenders of its interest in the Undertakings, and will be at the   expense of the Exporter.
  

IN WITNESS WHEREOF, each of the Exporter, the Paying Agent, the Guarantor, the Administrative Agent and the Lenders have executed this Prepayment Agreement in 3 originals in English as of the date first above written herein. 

[   ]

	
  
BANCO   SANTANDER CENTRAL HISPANO, S.A., LONDON BRANCH
  	
  
 
  	
  
 
  
	
  
As   Lead Arranger
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
BANCO   SANTANDER CENTRAL HISPANO, S.A., LONDON BRANCH as Administrative Agent
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
VOTORANTIM CELULOSE E PAPEL S.A., as Exporter
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  

31

	
  
VCP EXPORTADORA E PARTICIPAÇÕES LTDA., as Guarantor
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
VCP   TRADING N.V., as Paying Agent
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
[   ]
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
As   Lender
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
BANCO   SANTANDER CENTRAL HISPANO, S.A., LONDON BRANCH
  	
  
 
  	
  
 
  
	
  
As   Lender
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
   
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Witnesses:
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  1.
  	
  
 
  	
  
 
  	
  
2.
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:  
  	
  
 
  	
  
 
  	
  
Name:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  

32

SCHEDULE 1
INITIAL IMPORTERS

	
  IMPORTER
  	
   
 	
  
COUNTRY
  
	
  

  	
  
 
  	
  

  
	
  
AHLSTROM   CORP.
  	
  
 
  	
  
GERMANY   / FRANCE
  
	
  
ALLCART   S.R.L.
  	
  
 
  	
  
ITALY
  
	
  
ANTALIS   S.N.C.
  	
  
 
  	
  
FRANCE
  
	
  
ARJO   WIGGINS LIMITED
  	
  
 
  	
  
FRANCE
  
	
  
FEDRIGONI   CARTIERE SPA
  	
  
 
  	
  
ITALY
  
	
  GEORGIA-PACIFIC   CORP.
  	
  
 
  	
  
USA   / FRANCE / NETHERLANDS / ITALY / GRECE / TURQUEY / UK
  
	
  
GOULD   PAPER CORPORATION
  	
  
 
  	
  
USA
  
	
  
IMPECO   S.L.
  	
  
 
  	
  
SPAIN
  
	
  
ITOCHU   CORPORATION
  	
  
 
  	
  
KOREA   / JAPAN
  
	
  
J.   MC’NAUGHTON PAPER GROUP
  	
  
 
  	
  
UK
  
	
  
KANZAN   GMBH
  	
  
 
  	
  
GERMANY
  
	
  
KARTOGROUP   DEUTSCHLAND GMBH
  	
  
 
  	
  
GERMANY
  
	
  KARTOGROUP   SPA
  	
  
 
  	
  
ITALY
  
	
  
LINDENMEYR   MUNROE
  	
  
 
  	
  
USA
  
	
  
MARUBENI   CORPORATION
  	
  
 
  	
  
JAPAN
  
	
  
M-REAL   CORPORATION
  	
  
 
  	
  
SWITZERLAND
  
	
  
PAPETERIES   DE CLAIREFONTAINE
  	
  
 
  	
  
FRANCE
  
	
  
PKS   (KOEHLER AG)
  	
  
 
  	
  
GERMANY
  
	
  
PKS   (SCHEUFELEN)
  	
  
 
  	
  
GERMANY
  
	
  
RADECE   PAPIR
  	
  
 
  	
  
SLOVENIA
  
	
  SAPPI   EUROPE S.A.
  	
  
 
  	
  
AUSTRIA   / UK
  
	
  
SCA   HYGIENE PRODUCTS
  	
  
 
  	
  
BELGIUM   / NETHERLANDS / FRANCE / ITALY / UK
  
	
  
TRENT   PAPER SALES
  	
  
 
  	
  
UK
  
	
  
UPM-KYMMENE   (NORDLAND PAPIER AG)
  	
  
 
  	
  
GERMANY
  
	
  
UPM-KYMMENE (PAPETERIES DE DOCELLES)
  	
  
 
  	
  
FRANCE
  

33

SCHEDULE 2
LENDERS’COMMITMENTS

	
  Lender
  	
   
 	
  
Commitment
  
	
  

  	
  
 
  	
  

  	
  

  
	
  
    BANCO   SANTANDER CENTRAL HISPANO, LONDON BRANCH
  	
  
     
  	
  
    US$
  	
  
    100,000,000.00
  
	
  
 
  	
  
 
  	
  

  	
  

  
	
  
    TOTAL
  	
  
     
  	
  
    US$
  	
  
    100,000,000.00
  

34

SCHEDULE 3
PAYMENT DATES

	
  Interest   Period
  	
   
 	
  
Start   Date (Months from
 Disbursement Date)
  	
   
 	
  
Maturity   Date (Months
 from Disbursement Date)
  	
   
 	
  
Principal   Due at
 Maturity Date (% of Advance)
  
	
  

  	
  
 
  	
  

  	
  
 
  	
  

  	
  
 
  	
  

  
	
  
1
  	
  
 
  	
  
Disbursement Date of the Advance
  	
  
 
  	
  
6
  	
  
 
  	
  
-
  
	
  2
  	
  
 
  	
  
6
  	
  
 
  	
  
12
  	
  
 
  	
  
-
  
	
  
3
  	
  
 
  	
  
12
  	
  
 
  	
  
18
  	
  
 
  	
  
-
  
	
  
4
  	
  
 
  	
  
18
  	
  
 
  	
  
24
  	
  
 
  	
  
-
  
	
  
5
  	
  
 
  	
  
24
  	
  
 
  	
  
30
  	
  
 
  	
  
-
  
	
  6
  	
  
 
  	
  
30
  	
  
 
  	
  
36
  	
  
 
  	
  
-
  
	
  
7
  	
  
 
  	
  
36
  	
  
 
  	
  
42
  	
  
 
  	
  
-
  
	
  
8
  	
  
 
  	
  
42
  	
  
 
  	
  
48
  	
  
 
  	
  
-
  
	
  
9
  	
  
 
  	
  
48
  	
  
 
  	
  
54
  	
  
 
  	
  
-
  
	
  10
  	
  
 
  	
  
54
  	
  
 
  	
  
60
  	
  
 
  	
  
4%
  
	
  
11
  	
  
 
  	
  
60
  	
  
 
  	
  
61
  	
  
 
  	
  
4%
  
	
  
12
  	
  
 
  	
  
61
  	
  
 
  	
  
62
  	
  
 
  	
  
4%
  
	
  
13
  	
  
 
  	
  
62
  	
  
 
  	
  
63
  	
  
 
  	
  
4%
  
	
  14
  	
  
 
  	
  
63
  	
  
 
  	
  
64
  	
  
 
  	
  
4%
  
	
  
15
  	
  
 
  	
  
64
  	
  
 
  	
  
65
  	
  
 
  	
  
4%
  
	
  
16
  	
  
 
  	
  
65
  	
  
 
  	
  
66
  	
  
 
  	
  
4%
  
	
  
17
  	
  
 
  	
  
66
  	
  
 
  	
  
67
  	
  
 
  	
  
4%
  
	
  18
  	
  
 
  	
  
67
  	
  
 
  	
  
68
  	
  
 
  	
  
4%
  
	
  
19
  	
  
 
  	
  
68
  	
  
 
  	
  
69
  	
  
 
  	
  
4%
  
	
  
20
  	
  
 
  	
  
69
  	
  
 
  	
  
70
  	
  
 
  	
  
4%
  
	
  
21
  	
  
 
  	
  
70
  	
  
 
  	
  
71
  	
  
 
  	
  
4%
  
	
  22
  	
  
 
  	
  
71
  	
  
 
  	
  
72
  	
  
 
  	
  
4%
  
	
  
23
  	
  
 
  	
  
72
  	
  
 
  	
  
73
  	
  
 
  	
  
4%
  
	
  
24
  	
  
 
  	
  
73
  	
  
 
  	
  
74
  	
  
 
  	
  
4%
  
	
  
25
  	
  
 
  	
  
74
  	
  
 
  	
  
75
  	
  
 
  	
  
4%
  
	
  26
  	
  
 
  	
  
75
  	
  
 
  	
  
76
  	
  
 
  	
  
4%
  
	
  
27
  	
  
 
  	
  
76
  	
  
 
  	
  
77
  	
  
 
  	
  
4%
  
	
  
28
  	
  
 
  	
  
77
  	
  
 
  	
  
78
  	
  
 
  	
  
4%
  
	
  
29
  	
  
 
  	
  
78
  	
  
 
  	
  
79
  	
  
 
  	
  
4%
  
	
  30
  	
  
 
  	
  
79
  	
  
 
  	
  
80
  	
  
 
  	
  
4%
  
	
  
31
  	
  
 
  	
  
80
  	
  
 
  	
  
81
  	
  
 
  	
  
4%
  
	
  
32
  	
  
 
  	
  
81
  	
  
 
  	
  
82
  	
  
 
  	
  
4%
  
	
  
33
  	
  
 
  	
  
82
  	
  
 
  	
  
83
  	
  
 
  	
  
4%
  
	
  34
  	
  
 
  	
  
83
  	
  
 
  	
  
Final Maturity Date.
  	
  
 
  	
  
4%
  

35

PROMISSORY NOTE

Amount in US$ 100,000,000
Place: São Paulo, Brazil. 
Date: July 26, 2005

FOR VALUE RECEIVED, VOTORANTIM CELULOSE E PAPEL S.A., a company duly organised and existing under the laws of the Federative Republic of Brazil, with its head office located at 1357 Alameda Santos, 6th floor, São Paulo, Brazil, (the “Exporter”) hereby promises to pay to BANCO SANTANDER CENTRAL HISPANO S.A., LONDON BRANCH, as Administrative Agent, on behalf of the Lenders, the principal sum of US$ 100,000,000.oo [One hundred million United States Dollars] (the “Advance”), on the dates as specified in the Export Prepayment Agreement (as defined below) until (the “Final Maturity Date”) or on such earlier date as may be required by the Lender  in accordance with the terms of the Export Prepayment Agreement (as defined below). The Exporter also promises to pay interest on the unpaid principal amount hereof from the date hereof until such principal amount is paid in full, at such interest rates, and payable at such times,
as are specified in the Export Prepayment Agreement.

Both principal and interest hereunder are payable in lawful money of the United States of America, in same day funds, to the Administrative Agent, at its account at Bank of New York (Swift IRVTUS3N), N° 890-0429-399, ABA 021000018 [   ], free and clear of all deduction of any present or future taxes, levies, imposts, charges, withholdings, penalties, fines, additions to tax and interest, imposed or levied in Brazil or any other jurisdictions from which any payment hereunder is remitted, or any political subdivision or taxing authority thereof, except taxes imposed on the Lenders’ income by the jurisdiction under which the Lenders are incorporated.

The Exporter hereby waives, to the fullest extent permitted by applicable law, presentment, demand, protest and all notices of any kind in connection with this Promissory Note. The failure of the Lenders to exercise any of their rights hereunder in any particular instance shall not constitute a waiver thereof in that instance or any subsequent instance.

This promissory note is the Promissory Note referred to in that Export Prepayment Agreement, dated as of [  ] (the “Export Prepayment Agreement”), among the Exporter, the Guarantor, the Paying Agent, the Administrative Agent and the Lenders, which among other things, contains provisions for the acceleration of the maturity hereof upon the happening of certain events therein specified.

This Promissory Note shall be governed by, and construed in accordance with, the English law, without giving effect to its conflict of law principles.

	
  
VOTORANTIM CELULOSE E PAPEL S.A.
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:
  	
  
 
  	
  
 
  	
  
Name:
  	
  
 
  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  Per Aval:
  	
  
 
  	
  
 
  	
  
 
  
	
  
VCP EXPORTADORA E PARTICIPAÇÕES LTDA.
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:  
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  Name:
  	
  
 
  	
  
 
  	
  
Name:
  	
  
 
  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  

36

Exhibit B

DISBURSEMENT REQUEST

July 22, 2005

BANCO SANTANDER CENTRAL HISPANO S.A., LONDON BRANCH, as Administrative Agent
100 Ludgate Hill, London EC4M 7NJ, England

Ladies and Gentlemen:

We refer to the Export Prepayment Agreement dated as of July 22, 2005 (the “Prepayment Agreement”) between Votorantim Celulose e Papel S.A., VCP Exportadora e Participações Ltda., VCP Trading N.V., the Administrative Agent, and the Lenders. Terms defined in the Prepayment Agreement shall have the same meaning in this Disbursement Request.

Pursuant to Section 3 of the Prepayment Agreement, we hereby request the Lenders to make an advance to us in the amount of US$ 100,000,000.oo [One hundred million United States Dollars] (the “Advance Amount”) on [July       , 2005] (the “Disbursement Date”) for the purpose of financing future exports to be made by the Exporter to the Importers in accordance with the Prepayment Agreement.

Not later than 2 (two) Banking Days prior to the Disbursement Date, we shall give you in writing the credit instructions for the Advance Amount.

We confirm that, on the date hereof, the representations set out in Section 9 of the Prepayment Agreement are true and correct and that no Event of Default has occurred and is continuing.

Enclosed are the documents required pursuant to Section 8 of the Prepayment Agreement.

Sincerely yours, 

	
  
VOTORANTIM   CELULOSE E PAPEL S.A.
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Name:
  	
  
 
  	
  
 
  	
  
Name:
  	
  
 
  
	
  
Title:
  	
  
 
  	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Acknowledged   and agreed by BANCO SANTANDER CENTRAL HISPANO S.A., LONDON BRANCH, as the as   Administrative Agent
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
By:
  	
  
 
  	
  
 
  	
  
By:
  	
  
 
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  
	
  Name:
  	
   
  	
   
  	
  Name:
  	
   
  
	
  Title:
  	
   
  	
   
  	
  Title:
  	
   
  

37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]