PUT OPTION ON CASH-SETTLED CRYSTAL SUGAR FUTURES

CONTRACT

- Specifications –

1. Definitions
Purchase of a contract: A transaction where the participant is the holder, that
is, the participant has the right to sell the underlying
contract at the strike price.

Sale of a contract: A transaction where the participant is the writer, that

is, if exercised by the holder it has the obligation of
buying the underlying contract at the strike price.

Business day: A day on which there is trading on

BM&FBOVESPA. For the purposes of cash
settlement and meeting margin calls, a business day
is considered one on which as well as there is a
trading session on BM&FBOVESPA, it is not a
banking holiday in the New York marketplace of the
United States of America.

Series: A set of characteristics of the option contract which

determine its expiration date and strike price,
identified by the specific code established by
BM&FBOVESPA.

BM&FBOVESPA Exchange
Rate Benchmark (TxC): The exchange rate of Brazilian Reals per United
States Dollar, calculated by BM&FBOVESPA for
settlement in one (1) day, as published in its website.

PTAX rate: The exchange rate of Brazilian Reals per United

States Dollar, sell quotation, freely agreed upon
between the parties and for cash delivery, pursuant to
the provisions of Resolution 3.568/2008 of the
National Monetary Council (CMN), calculated and
published by the Central Bank of Brazil (BACEN).

BM&FBOVESPA: BM&FBOVESPA S.A. – Bolsa de Valores,

Mercadorias e Futuros.

Updated version by Circular Letter 125/2015-DP, in November 17, 2015

2. Underlying contract
The Cash-Settled Crystal Sugar Futures Contract traded at BM&FBOVESPA.

3. Price quotation
Option premium in Brazilian Reals per 50-net kilogram bag to two decimal places.

4. Tick Size
BRL0.01 (one cent of a Brazilian Real) per 50-net kilogram bag.

5. Contract size
Each option contract is based on one Cash-Settled Crystal Sugar Futures Contract,
the round lot of which is 508 bags, weighing 50 net kilograms each, being equivalent
to 25.4 metric tons.

6. Strike prices
Strike prices shall be established and published by BM&FBOVESPA expressed in
Brazilian Reals per 50-net kilogram bag.

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

8. Expiration date
The 15th of the contract month. If this is not a business day, the expiration date shall
be the following business day.

9. Last trading day

The business day preceding the expiration date.

10. Day trading

Buying and selling in the same trading session the same number of Option Contracts
of the same Series shall be offset provided these transactions are executed on behalf
of the same Customer through the same Participant and under the responsibility of
the same Clearing Member. These transactions shall be cash settled on the following
business day, and their amounts shall be calculated in accordance with item 11,
subject to the provisions set forth in item 15, where applicable.

11. Premium cash settlement

Receipt and payment of premiums shall occur on the business day following the
trade’s day and the values shall be calculated by the following formula:

𝐕𝐋𝐏 = 𝐏 × 𝟓𝟎𝟖

where:

VLP = the premium cash settlement value per contract, in Brazilian Reals;
P = the option premium expressed in Brazilian Reals.

Updated version by Circular Letter 125/2015-DP, in November 17, 2015

12. Option style
This is an American option, which means that it may be exercised by the buyer as
of the first business day following the day a position has been initiated, up until the
expiration date.

13. Option exercise

There shall be automatic exercise of the option on the expiration date, whenever the
settlement price of the underlying contract is lower than the strike price.

Cash settlement shall be on the business day following the expiration date.

The exercise of an option means that the buyer shall enter into a short position on
the Cash-Settled Crystal Sugar Futures Contract and the seller shall enter into a
long position on the Cash-Settled Crystal Sugar Futures Contract, both at the
corresponding strike price.

The requirements of the Cash-Settled Crystal Sugar Futures Contract relating to

margins, daily settlements, and delivery settlement shall be applicable in both cases.

14. Collateral
Collateral, whose amounts shall be calculated in accordance with the criteria
published by BM&FBOVESPA, shall be required from all option writers and may
be updated daily. Margins shall be due on the first business day following the trade
date. For nonresidents, should the first business day following the trade date be a
banking holiday in New York, collateral shall be due on the first day following the
trade date when there is no banking holiday in that city. When the conversion of
cash collateral is necessary, it shall be subject to the provisions set forth in item 15,
where applicable.

15. Forms of payment and receipt in cash settlement

The following shall apply for the cash settlement of day trades, premiums, margin
deposits in cash, and trading costs not expressed in Brazilian Reals:

a) For residents
The amounts shall be in Brazilian Reals, in accordance with the procedures
established by the BM&FBOVESPA Clearinghouse.

b) For nonresidents
The amounts shall be payable and receivable in United States Dollars in New
York, USA, through the settlement bank appointed by BM&FBOVESPA, in
accordance with the procedures established by the BM&FBOVESPA
Clearinghouse.

The conversion of amounts resulting from day trades, of amounts resulting from
premiums and of the conversion of margin requirements deposited in US

Updated version by Circular Letter 125/2015-DP, in November 17, 2015

 Dollars, the BM&FBOVESPA Exchange Rate Benchmark of the trade date
shall be used.

16. Further provisions

This Contract is covered where applicable by the prevailing legislation and by
BM&FBOVESPA rules, regulations, and procedures, as defined in its Bylaws,
Operating Rules, and Circular Letters, as well as by specific rules and regulations
set forth by the Brazilian governmental authorities that may affect the terms herein
stated.

In the case of situations not foreseen in this Contract, or of government measures or

any other fact that impacts on the formation, manner of calculation, or the
publication of its variables, or which imply its discontinuation, BM&FBOVESPA
shall take the measures it judges necessary, at its sole discretion, seeking the
settlement of the Contract or its continuation on equivalent bases.

Updated version by Circular Letter 125/2015-DP, in November 17, 2015