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EXHIBIT 4.17

 

ENGLISH LANGUAGE SUMMARY OF THE MATERIAL PROVISIONS OF THE

CONTRACT FOR THE PURCHASE AND SALE OF SHARES AND OF PREEMPTIVE RIGHTS FOR THE SUBSCRIPTION OF SHARES OF TELEMAR PARTICIPAÇÕES S.A.,

DATED AS OF JANUARY 25, 2011,

BETWEEN BNDES PARTICIPAÇÕES S.A. — BNDESPAR, BRATEL BRASIL S.A. AND, AS INTERVENING PARTIES, TELEMAR PARTICIPAÇÕES S.A. AND PORTUGAL TELECOM, SGPS S.A.

 

·                  Sale of Shares, Preemptive Rights for the Subscription of Shares, and Price: BNDES Participações S.A. (“BNDESPAR”) agreed to sell to Bratel Brasil S.A. (the “Buyer”) an affiliate of Portugal Telecom, 80,682,800 ordinary shares of Telemar Participações S.A. (“TmarPart”) for a consideration of R$329,008,768.82, or R$4.07780554 per share, and the preemptive rights for the subscription of 31,582,621 ordinary shares of TmarPart for a consideration of R$145,248,808.83.  The sale was subject to a number of conditions, including the concurrent acquisitions and/or subscriptions of shares of Pasa Participações S.A., EDSP75 Participações S.A., TmarPart, Tele Norte Leste Participações S.A. and Telemar Norte Leste S.A. (“Telemar”)so as to guarantee that the Buyer would hold a minimum direct and indirect interest in Telemar of 22.38%.

 

·                  Indemnification:  BNDESPAR agreed to indemnify the Buyer for breaches of representations and warranties relating to BNDESPAR and to the ownership of the shares, as well as for default of any obligation undertaken by BNDESPAR under the contract.  The Buyer agreed to indemnify BNDESPAR for breaches of representations and warranties relating to the Buyer and default of any obligation undertaken by the Buyer under the contract.

 

·                  Representations, Warranties and Agreements:  The contract contained representations and  warranties relating to BNDESPAR and to the ownership of the shares.

 

·                  Termination:  The contract allowed the Buyer and the Sellers to terminate it under specified circumstances.  It also provides for automatic termination in certain extraordinary circumstances, such as bankruptcy of any of TmarPart and/or of Buyer.  The agreement was not terminated, and the transaction closed on March 28, 2011.

 

·                  Governing Law and Dispute Resolution:  The agreement is governed by Brazilian law.  Any dispute under the agreement is to be resolved through arbitration in Brazil.

 

Portugal Telecom will provide a copy of the Portuguese language agreement to the Staff of the Securities and Exchange Commission upon request.EXHIBIT 4.18

 

ENGLISH LANGUAGE SUMMARY OF THE MATERIAL PROVISIONS OF THE

CONTRACT FOR THE SUBSCRIPTION OF SHARES

OF TELEMAR PARTICIPAÇÕES S.A.,

DATED AS OF JANUARY 25, 2011,

AMONG AG TELECOM PARTICIPAÇÕES S.A., LUXEMBURGO PARTICIPAÇÕES S.A., LF TEL S.A., FUNDAÇÃO ATLÂNTICO DE SEGURIDADE SOCIAL, BRATEL BRASIL S.A., TELEMAR PARTICIPAÇÕES S.A. AND, AS INTERVENING PARTY, PORTUGAL TELECOM, SGPS S.A.

 

·                  Issue of Shares:  AG Telecom Participações S.A. (“AG Telecom”), Luxemburgo Participações S.A. (“Luxemburgo”), LF TEL S.A. (“LF Tel”) and Fundação Atlântico de Seguridade Social (“FASS”, and collectively with AG Telecom, Luxemburgo and LF Tel, “TmarPart’s Shareholders”) agreed to vote in order to approve a capital increase of Telemar Participações S.A. (“TmarPart”), upon issuance of 186,664,449 ordinary shares of TmarPart, in the total amount of R$761,181,324.00, or R$4.07780554 per share, such shares were subscribed as follows: (1) 24,522,360 ordinary shares of TmarPart by AG Telecom for a total consideration of R$99,997,413.00; (2) 12,262,131 ordinary shares of TmarPart by Luxemburgo for a total consideration of R$50,002,588.00; (3) 36,784,491 ordinary shares of TmarPart by LF Tel for a total consideration of R$150,000,001.00; (4) 21,869,930 ordinary shares of TmarPart by FASS for a total consideration of R$89,181,322.00; and (5) 91,225,537 ordinary shares of TmarPart by Bratel Brasil S.A. (“Bratel”) for a total consideration of R$372,000,000.00.  The subscription was subject to a number of conditions, including, inter alia, the concurrent acquisitions and/or subscriptions of shares of Pasa Participações S.A., EDSP75 Participações S.A., TmarPart, Tele Norte Leste Participações S.A. and Telemar Norte Leste S.A. (“Telemar”), so as to assure that Bratel would hold a minimum direct and indirect interest in Telemar of 22.38%.

 

·                  Indemnification: TmarPart agreed to indemnify Bratel, among certain other circumstances, for liabilities arising from breaches of its representations and warranties under the contract, for liabilities arising from facts, acts or omissions that took place up to the date of the closing (other than those identified in the applicable financial statements)and dispossession of or defects in the title to TNLP and Telemar shares held by TmarPart. TmarPart’s indemnification obligation is limited to a five-year period  and it is capped at the subscription price of the shares subscribed by Bratel (except with respect to breach of certain representations and warranties and the dispossession of or defects in the title to the shares which shall follow their respective statute of limitation and it is not subject to a cap).

 

In addition, TmarPart’s Shareholders agreed to indemnify Bratel for any breach of their representations and warranties under the contract during the period of the statute of limitations applicable to each claim that could be brought against TmarPart’s Shareholders by Bratel and no cap applies.

 

On the other hand, Bratel agreed to indemnify TmarPart for any breach of its representations and warranties relating to Bratel under the contract during the period of the statute of limitations applicable to each claim that could be brought against Bratel by TmarPart and no cap applies.

 

·                  Representations, Warranties and Agreements:  The contract contained customary representations, warranties and agreements typical of merger and acquisition transactions.

 

·                  Termination:  The agreement allowed TmarPart and Bratel to terminate the agreement under specified circumstances.  It also provides for automatic termination in certain extraordinary circumstances, such as bankruptcy of any of the parties. The agreement was not terminated, and the transaction closed on March 28, 2011.

 

 

·                  Governing Law and Dispute Resolution:  The agreement is governed by Brazilian law.  Any dispute under the agreement is to be resolved through arbitration in Brazil.

 

Portugal Telecom will provide a copy of the Portuguese language agreement to the Staff of the Securities and Exchange Commission upon request.EXHIBIT 4.19

 

ENGLISH LANGUAGE SUMMARY OF THE MATERIAL PROVISIONS OF THE

COMMITMENT TO PURCHASE AND SELL SHARES OF TELE NORTE LESTE

PARTICIPAÇÕES S.A. AND TELEMAR NORTE LESTE S.A,

DATED AS OF JANUARY 25, 2011,

AMONG BRATEL BRASIL S.A., TELEMAR PARTICIPAÇÕES S.A., TELE NORTE LESTE

PARTICIPAÇÕES S.A., TELEMAR NORTE LESTE S.A. AND, AS INTERVENING PARTY,

PORTUGAL TELECOM, SGPS S.A.

 

·      Sale of Shares and Price:  Telemar Participações S.A. (“TmarPart”) and Tele Norte Leste Participações S.A. (“TNLP”) undertook under the contract (x) to increase the capital of TNLP and Telemar Norte Leste S.A. (“Telemar”) upon issuance of new shares, (y) to subscribe such new shares, and (z) to sell part of such newly issued shares to Bratel Brasil S.A. (“Bratel”).

 

·      The transaction was subject to a number of conditions, including, inter alia, the concurrent acquisitions and/or subscriptions of shares of Pasa Participações S.A., EDSP75 Participações S.A., TmarPart, TNLP and Telemar so as to assure that Bratel would hold a minimum direct and indirect interest in Telemar of 22.38%..

 

·      Indemnification:  TmarPart, TNLP and Telemar agreed to indemnify Bratel for breaches of representations and warranties relating to them and to the ownership of the shares, as well as for default of any obligation undertaken by them under the contract.  Bratel agreed to indemnify TmarPart, TNLP and Telemar for breaches of representations and warranties relating to it and default of any obligation undertaken by it under the contract.

 

·      Representations, Warranties and Agreements:  The agreement contained customary representations, warranties and agreements typical of merger and acquisition transactions.

 

·      Termination:  The contract allowed the parties to terminate it under specified circumstances.  It also provided for automatic termination under certain extraordinary circumstances, such as bankruptcy of any of the parties.  The agreement was not terminated, and the transaction closed on March 28, 2011.

 

·      Governing Law and Dispute Resolution:  The agreement is governed by Brazilian law.  Any dispute under the agreement is to be resolved through arbitration in Brazil.

 

Portugal Telecom will provide a copy of the Portuguese language agreement to the Staff of the Securities and Exchange Commission upon request.WebFilings | EDGAR view

 

    
 
 
AMENDMENT No. 1 to STOCK APPRECIATION RIGHTS AGREEMENT 
for Nancy Lurker
 
 
This Amendment No. 1 (this “Amendment No. 1”) to that certain Stock Appreciation Rights Agreement dated November 18, 2008 between PDI, Inc., a Delaware corporation (the “Company”) and Nancy Lurker (the “Recipient”) (the “Agreement”), is dated as of March 14, 2011.  Defined terms used herein without definition have the meanings ascribed to such terms in the Agreement.
 
WHEREAS, the Company and the Recipient have each determined that it is advisable and in their respective best interests to amend the Agreement on the terms and conditions set forth herein.
 
NOW THEREFORE, in consideration of all of the terms and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Recipient hereby agree to amend the Agreement as follows:
 
1.This Amendment No. 1 shall be deemed to amend the Agreement as of March 14, 2011, and shall only apply as of and after such date.
 
2.The chart contained in Section 2 of the Agreement is hereby amended and restated in its entirety as follows:  
 
	
		
	Tranche of SARS
	Stock-Based Performance Condition

	94,000 SARs
	The Stock achieves an average closing price of at least $10.00 per share for any trailing sixty (60) consecutive trading days on the Nasdaq Stock Market or such other primary stock exchange on which the Stock is listed and traded (an “Exchange”)

	93,000 SARs
	The Stock achieves an average closing price of at least $15.00 per share for any trailing sixty (60) consecutive trading days on an Exchange

	93,000 SARs
	The Stock achieves an average closing price of at least $20.00 per share for any trailing sixty (60) consecutive trading days on an Exchange

 

 

 
3.The sentence appearing immediately below the chart in Section 2 is hereby deleted and replaced with the following:
 
“Notwithstanding the foregoing provisions of this Section 2, upon a Change in Control, (i) the Time-Based Vesting Conditions applicable to each SAR shall be deemed to have been fully attained as of the date of such Change in Control and (ii) with respect to each of the tranches of SARs listed above, if the Fair Market Value of a Share as of the date of any Change in Control (or, if greater, the per share consideration paid in connection with such Change in Control) exceeds the per share dollar threshold amount of the stock-based performance conditions set forth in the table above (without regard to the number of consecutive trading days for which the average closing price was achieved), then such Stock Performance-Based Vesting Condition shall be deemed to have been achieved as of the date of such Change in Control, to the extent not previously achieved.”
 
4.The first sentence of Section 9 of the Agreement is hereby deleted and replaced with the following new sentence:
 
“Any notice hereunder by the Recipient shall be given to the Company in writing and such notice shall be deemed duly given only upon receipt thereof at the Company's office at Morris Corporate Center One, Building A, 300 Interpace Parkway, Parsippany, New Jersey 07054, Attn: Human Resources Department, or at such other address as the Company may designate by notice to the Recipient.”
 
5.Except as expressly amended by this Amendment No. 1, all other provisions of the Agreement shall remain in full force and effect.
 
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 as of the date first written above.
 
PDI, INC.
 
 
By:    /s/ Kathy Marsico            
Kathy Marsico
SVP Human Resources
 
 
RECIPIENT
 
 
Signature:  /s/ Nancy Lurker            
Nancy Lurker

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