CASH-SETTLED CRYSTAL SUGAR FUTURES CONTRACT

– Specifications –

1. Definitions

Hedgers: Customers who trade the contract and act as producers,

cooperatives, consumer industries, mills, importers and
exporters, as well as suppliers of inputs, machinery and
equipment.
Settlement price (PA): The closing price, calculated and/or arbitrated daily by
BM&FBOVESPA, at its own discretion, for the
purpose of updating the value of open positions and
calculating the variation margin and the settlement
value of day trades.
PTAX: The exchange rate of Brazilian Reals per U.S. Dollar,
sell quotation, published by the Central Bank of Brazil
(BACEN) through SISBACEN, transaction PTAX800,
option “5,” closing quotation, for settlement in two
days, utilizing the maximum of seven decimal places,
corresponding to the last day of the month preceding
the trade date.
BM&FBOVESPA exchange rate The exchange rate of Brazilian Reals per United
benchmark: States Dollar, calculated by BM&FBOVESPA for
settlement in one day and published on its website.
Business day: Any day on which there is a trading session at
BM&FBOVESPA.
BM&FBOVESPA or Exchange: BM&FBOVESPA S.A. – Bolsa de Valores,
Mercadorias e Futuros.

2. Underlying commodity
Special crystal sugar, with a minimum of 99.7º (ninety nine point seven) degrees of
polarization, maximum 0.08% (eight one hundredths of a percent) moisture, color
maximum 150 ICUMSA, maximum 0.07% (seven one hundredths of a per cent) ash.

3. Price quotation
Brazilian Reals per 50 (fifty)-net kilogram bag, to two decimal places, tax free.

4. Tick size
BRL 0.01 (one cent of a Brazilian Real) per 50 (fifty)-net kilogram bag.

5. Maximum daily price fluctuation

As established by BM&FBOVESPA.
The maximum daily price fluctuation limit for the first month shall be suspended on the
last three days of trading.
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BM&FBOVESPA may alter the price fluctuation limit applicable to any contract month at
any time, even during a trading session, by communicating this to the market with a 30
minute-advance notice.

6. Contract size
508 (five hundred and eight) bags of 50 (fifty)-net kilograms or 25.4 (twenty five point
four) metric tons.

7. Contract months
February, April, June, September and December.

8. Expiration date and last trading day

The last trading day in the contract shall be the expiration date.
The contract’s expiration date shall be every 15th of the contract month. If this is not a
business day for the purposes of this contract, the expiration date shall be the following
business day.

9. Business day
For the purposes of cash settlement and for meeting margin calls, as referred to in items
11, 12, 13.1 and 18.2, a day that is not a banking holiday in New York, USA, and on which
there is a trading session at BM&FBOVESPA shall be considered a business day.

10. Day trading

Buying and selling on the same trading session the same number of contracts for the same
month shall be offset provided these transactions are executed on behalf of the same
customer through the same Intermediary and registered by the same Clearing member, or
performed by the same Local and registered by the same Clearing Member. These
transactions shall be cash settled on the first business day following the trade date, and
their amounts shall be calculated in accordance with item 12(a), in observance of the
provisions set forth in item 18, where applicable.

11. Daily settlement of accounts (variation margin)

The positions outstanding at the end of each session shall be marked-to-market according
to that day’s settlement price, determined in accordance with the rules established by the
Exchange with the corresponding amount cash settled on the following business day.
The variation margin for outstanding positions shall be calculated up to the last trading day
by the following formulas:

a. For the positions initiated on the day

ADt = (PAt – PO) × 508 × n

b. For the positions outstanding on the previous day

ADt = (PAt – PAt–1) × 508 × n

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Where:
ADt = the variation margin value, in Brazilian Reals, corresponding to date “t”;
PAt = the day’s settlement price, in Brazilian Reals, on day “t,” for the relevant
contract month;
PO = the trading price, in Brazilian Reals;
n = the number of contracts;
PAt-1 = the settlement price on the business day preceding day “t,” in Brazilian
Reals, for the relevant contract month.

The variation margin value (ADt), calculated as shown above, if positive, shall be credited
to the buyer and debited from the seller. Should the calculation above present a negative
value, it shall be debited from the buyer and credited to the seller.

12. Settlement procedures on expiration

The positions outstanding at the end of the last trading day shall be settled by
BM&FBOVESPA through the registration of an offsetting transaction (buy or sell) by the
price calculated, for the same number of contracts, in accordance with the following
formula:

Where:
POi = the traded price relating to the settlement by price index, expressed in
Brazilian Reals per 50 kg (fifty kilogram) bag (net);
IASantost = the BM&FBOVESPA Crystal Sugar Price Indicator – Port of Santos
(SP), expressed in Brazilian Reals per bag, calculated by a renowned institution
specialized in price collections, as defined in Circular Letters and published on the
BM&FBOVESPA Website;
d – 4 = the fourth business day preceding the last trading day;
d = the contract’s expiration date and last trading day.

The amounts resulting from the settlement of positions by price index shall be cash settled
on the business day following the trading session corresponding to the last trading day.

13. Ex-pit transactions

Ex-pit transactions shall be allowed up to the trading session corresponding to the last
trading day, provided the conditions established by BM&FBOVESPA are met. These
transactions shall be announced by BM&FBOVESPA, but shall not be subject to market
interference.

14. Margin requirements

Collateral shall be required from all customers holding open positions. Margin values shall
be updated daily by BM&FBOVESPA, in accordance with the margin calculation criteria
for futures contracts. Margin will be due on the subsequent business day. In the case of
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non-resident customers, if the subsequent business day is a banking holiday in New York
margin shall be due on the first day after the opening of the position on there is no banking
holiday on that marketplace.
When the conversion of cash collateral is necessary, it shall be subject to the provisions set
forth in item 18, where applicable.

15. Form of payment and the receipt of amounts relative to cash settlement and the
conversion of margin requirement amounts and of trading costs
The following shall apply to the cash settlement of day trades, the daily settlement of
accounts, as well as the conversion of collateral:

15.1 Residents
The amounts shall be in Brazilian Reals, in accordance with the procedures of the
BM&FBOVESPA Derivatives Clearinghouse.

15.2 Nonresidents
The amounts shall be payable and receivable in United States Dollars in New
York, USA, through the settlement banks appointed by BM&FBOVESPA.
When the conversion of amounts paid and received is necessary, the
BM&FBOVESPA exchange rate benchmark verified on a specific date according
to the nature of each payment shall be used as follows:

(a) Amounts resulting from day trades: the BM&FBOVESPA exchange rate
benchmark verified on the trade date;
(b) Amounts resulting from variation margin requirements: the
BM&FBOVESPA exchange rate benchmark to which the variation margin
refers;
(c) Amounts resulting from cash settlement on expiration: the
BM&FBOVESPA exchange rate benchmark verified on the business day
preceding the cash settlement date.
(d) Amounts resulting from margin requirements: the BM&FBOVESPA
exchange rate benchmark verified on the trade date;
The conversion of amounts related to the trading costs expressed in
Brazilian Reals shall be by the PTAX rate.

16. Arbitration of the settlement price by price index

The amounts resulting from the settlement of positions by price index, pursuant to item 12,
may be arbitrated by BM&FBOVESPA, at its own discretion.

17. Further provisions

This contract shall be subject, where applicable, to the prevailing legislation and to
BM&FBOVESPA rules, regulations and procedures, as defined in its Bylaws, Rules,
Manuals, Circular Letters and External Communications, as well as to the specific rules
set forth by the Brazilian governmental authorities that may affect the terms stated herein.
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Should there be situations not covered by this contract, as well as governmental measures
and any other fact affecting the formation, calculation or disclosure of its variables, or
which imply their discontinuity, BM&FBOVESPA may at its sole discretion take the
measures it deems necessary for the contract’s cash settlement or continuity on an
equivalent basis.