Document:

Exhibit101-HEPAmendedandRestatedLong-TermIncentivePlan

HOLLY ENERGY PARTNERS, L.P. 
LONG-TERM INCENTIVE PLAN
(As Amended and Restated Effective February 10, 2012)
SECTION 1.  Purpose of the Plan.
The Holly Energy Partners, L.P. Long-Term Incentive Plan (the “Plan”) has been adopted to promote the interests of Holly Energy Partners, L.P., a Delaware limited partnership (the “Partnership”), by providing to employees, consultants, and directors of Holly Logistic Services, L.L.C., a Delaware limited liability company (the “Company”), and its Affiliates who perform services for or on behalf of the Partnership and its subsidiaries incentive compensation awards for superior performance that are based on Units.  The Plan is also contemplated to enhance the ability of the Company and its Affiliates to attract and retain the services of individuals who are essential for the growth and profitability of the Partnership and to encourage them to devote their best efforts to advancing the business of the Partnership and its subsidiaries.  The Plan is hereby amended and restated as of February 10, 2012 to incorporate prior amendments to the Plan and to make certain other changes.
SECTION 2.    Definitions.
As used in the Plan, the following terms shall have the meanings set forth below:
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.  As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
“Award” means an Option, Restricted Unit, Phantom Unit, Unit Appreciation Right, Unit Award, Substitute Award or Performance Unit granted under the Plan, and shall include any tandem DERs granted with respect to a Phantom Unit.  
“Award Agreement” means the written agreement by which an Award shall be evidenced.
“Board” means the Board of Directors of the Company.
“Change of Control” means, and shall be deemed to have occurred upon the occurrence of one or more of the following events: (i) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of HollyFrontier, the Partnership, the General Partner, or the Company to any Person and/or its Affiliates, other than to HollyFrontier, the Partnership, the General Partner, the Company and/or any of their Affiliates; or (ii) any “person” or “group”, within the meaning of those terms as used in Sections 13(d) and 14(d)(2) of the Exchange Act, other than HollyFrontier, the Partnership, the General Partner, the Company and/or any of their respective Affiliates shall become the beneficial owner, by way of 

consolidation, reorganization, merger or otherwise, of more than 50% of the combined voting power of the outstanding equity interests in HollyFrontier, the Partnership, the General Partner, or the Company.
“Committee” means the Compensation Committee of the Board or such other committee of the Board as may be appointed by the Board to administer the Plan.  
“Consultant” means an individual who performs services for the Partnership, the Company or any of their Affiliates and is not an Employee or a Director.
“DER” means a contingent right, granted in tandem with a specific Phantom Unit, to receive an amount in cash equal to, and at the same time as, the cash distributions made by the Partnership with respect to a Unit during the period such Phantom Unit is outstanding.
“Director” means a member of the Board who is not an Employee.
“Employee” means any employee of the Company or an Affiliate who performs services for the Partnership.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Fair Market Value” means one of the following as determined at the time of authorization of an Award by the Committee in its sole discretion: (i) the closing sales price of a Unit on the applicable date (or if there is no trading in the Units on such date, on the next preceding date on which there was trading) as reported in The Wall Street Journal (or other reporting service approved by the Committee) or (ii) if selected by the Committee in its sole discretion for a particular Award or Awards, the average of the closing sales prices of a Unit as reported in The Wall Street Journal (or other reporting service approved by the Committee) for a period of 30 consecutive trading days ending on the date of determination or on a date not more than five trading days prior to the date of determination as specified by the Committee at the time of authorization of an Award. Notwithstanding the foregoing, in the event Units are not publicly traded on a national securities exchange or other market at the time a determination of Fair Market Value is required to be made hereunder, the determination of Fair Market Value shall be made in good faith by the Committee.
“General Partner” means HEP Logistics Holding, L.P., a Delaware limited partnership.
“HollyFrontier” means HollyFrontier Corporation, a Delaware corporation.
“Option” means an option to purchase Units granted under the Plan.
“Participant” means any Employee, Consultant or Director granted an Award under the Plan.

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of Holly Energy Partners, L.P., as it may be amended or amended and restated from time to time.
“Performance Unit” means a Phantom Unit or a Restricted Unit granted to a Participant pursuant to Section 6(f) that is based upon performance criteria specified by the Committee.
“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.
“Phantom Unit” means a phantom (notional) Unit granted under the Plan which upon vesting entitles the Participant to receive a Unit.
“Restricted Period” means the period established by the Committee with respect to an Award during which the Award remains subject to forfeiture and is either not exercisable by or payable to the Participant, as the case may be.
“Restricted Unit” means a Unit granted under the Plan that is subject to a Restricted Period.  
“Rule 16b-3” means Rule 16b-3 promulgated by the SEC under the Exchange Act, or any successor rule or regulation thereto as in effect from time to time.
“SEC” means the Securities and Exchange Commission, or any successor thereto.
“Securities Act” means the Securities Act of 1933, as amended.
“Substitute Award” means an Award granted pursuant to Section 6(e) of the Plan.
“UDR” means a distribution made by the Partnership with respect to a Restricted Unit.
“Unit” means a Common Unit of the Partnership.
“Unit Appreciation Right” means an Award that, upon exercise, entitles the holder to receive the excess of the Fair Market Value of Unit on the exercise date over the exercise price established for such Unit Appreciation Right.  Such excess shall be paid in Units.
“Unit Award” means a grant of a Unit that is not subject to a Restricted Period.
SECTION 3.    Administration.
(a)    General.  The Plan shall be administered by the Committee.  A majority of the Committee shall constitute a quorum, and the acts of the members of the Committee who are present 

at any meeting thereof at which a quorum is present, or acts unanimously approved by the members of the Committee in writing, shall be the acts of the Committee.  Subject to the following and any applicable law, the Committee, in its sole discretion, may delegate any or all of its powers and duties under the Plan, including the power to grant Awards under the Plan, to the Chief Executive Officer of the Company, subject to such limitations on such delegated powers and duties as the Committee may impose, if any.  Upon any such delegation all references in the Plan to the “Committee”, other than in Section 7, shall be deemed to include the Chief Executive Officer; provided, however, that such delegation shall not limit the Chief Executive Officer’s right to receive Awards under the Plan.  Notwithstanding the foregoing, the Chief Executive Officer may not grant Awards to, or take any action with respect to any Award previously granted to, a person who is an officer subject to Rule 16b-3 or who is a member of the Board.  Subject to the terms of the Plan and applicable law, and in addition to other express powers and authorizations conferred on the Committee by the Plan, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards to be granted to a Participant; (iii) determine the number of Units to be covered by Awards; (iv) determine the terms and conditions of any Award, consistent with the terms of the Plan, which terms may include any provision regarding the acceleration of vesting or waiver of forfeiture restrictions or any other condition or limitation regarding an Award, based on such factors as the Committee shall determine, in its sole discretion; (v) determine whether, to what extent, and under what circumstances Awards may be vested, settled, exercised, canceled, or forfeited; (vi) interpret and administer the Plan and any instrument or agreement relating to an Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and (viii) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.  The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or an Award Agreement in such manner and to such extent as the Committee deems necessary or appropriate.  Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive, and binding upon all Persons, including the Company, the Partnership, any Affiliate, any Participant, and any beneficiary of any Award.  
(b)    Limitation of Liability.  The Committee and each member thereof shall be entitled to, in good faith, rely or act upon any report or other information furnished to such member by any officer or Employee of the General Partner, the Partnership or any of their Affiliates, the General Partner’s or the Partnership’s legal counsel, independent auditors, consultants or any other agents assisting in the administration of the Plan.  Members of the Committee and any officer or Employee of the Company, the Partnership or any of their Affiliates acting at the direction or on behalf of the Committee shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the fullest extent permitted by law, be indemnified and held harmless by the General Partner with respect to any such action or determination.
(c)    Prohibition on Repricing of Awards.  Subject to the provisions of Section 4(c) hereof, the terms of outstanding Award Agreements may not be amended without the approval of the Partnership’s unitholders so as to (i) reduce the per Unit exercise price of any outstanding Options or Unit Appreciation Rights, (ii) cancel any outstanding Options or Unit Appreciation Rights in 

exchange for cash or other Awards when the Option or Unit Appreciation Right price per Unit exceeds the Fair Market Value of the underlying Units or (iii) otherwise reprice any Option or Unit Appreciation Right.  Subject to Section 4(c), Section 6(f)(vi), Section 7(c) and Section 8(m), the Committee shall have the authority, without the approval of the unitholders of the Partnership, to amend any outstanding Award to increase the per Unit exercise price of any outstanding Options or Unit Appreciation Rights or to cancel and replace any outstanding Options or Unit Appreciation Rights with the grant of Options or Unit Appreciation Rights having a per Unit exercise price that is greater than or equal to the per Unit exercise price of the original Options or Unit Appreciation Rights.
SECTION 4.    Units.
(a)    Limits on Units Deliverable.  Subject to adjustment as provided in Section 4(c), the maximum number of Units that may be delivered with respect to Awards granted under the Plan is 1,250,000.  No Award (other than any tandem DERs granted with respect to a Phantom Unit) may be paid or settled in cash.  If any Award terminates or is canceled prior to and without the delivery of Units or if an Award is forfeited (including the forfeiture of Restricted Units), then the Units covered by such Award, to the extent of such termination, cancellation, or forfeiture, shall again be Units with respect to which Awards may be granted.  
(b)    Sources of Units Deliverable Under Awards.  Any Units delivered pursuant to an Award shall consist, in whole or in part, of Units acquired in the open market, from any Affiliate, the Partnership or any other Person, or any combination of the foregoing, as determined by the Committee in its sole discretion.
(c)    Adjustments.  In the event that the Committee determines that any distribution (whether in the form of cash, Units, other securities, or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Units or other securities of the Partnership, issuance of warrants or other rights to purchase Units or other securities of the Partnership, or other similar transaction or event affects the Units such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Units (or other securities or property) with respect to which Awards may be granted, (ii) the number and type of Units (or other securities or property) subject to outstanding Awards, (iii) the grant or exercise price with respect to any Award, (iv) any other terms, conditions or limitations applicable to Awards (including, without limitation, any applicable performance targets or criteria with respect thereto) and/or (v) subject to Section 6(f)(vi), make provision for a cash payment to the holder of an outstanding Award; provided, that the number of Units subject to any Award shall always be a whole number.
SECTION 5.    Eligibility.
Any Employee, Consultant or Director shall be eligible to be designated a Participant and 

receive an Award under the Plan.  Notwithstanding the foregoing, Employees, Consultants and Directors that provide services to an Affiliate of the Partnership that is not considered a single employer with the Partnership under Section 414(b) of the Code or Section 414(c) of the Code shall not be eligible to receive Awards that are subject to Section 409A of the Code until such Affiliate adopts the Plan as a participating employer in accordance with Section 8(k).  Further, if the Units issuable pursuant to an Award are intended to be registered with the SEC under the Securities Act on a Form S-8 Registration Statement (“Form S-8”), then only Employees, Consultants, and Directors of the Partnership or a parent or subsidiary of the Partnership (within the meaning of General Instruction A.1(a) to Form S-8) will be eligible to receive such an Award to the extent necessary pursuant to Form S-8 to ensure the effective registration of the Units awarded pursuant to such an Award.
SECTION 6.    Awards.
(a)    Options.  The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Options shall be granted, the number of Units to be covered by each Option, the exercise price therefor and the conditions and limitations applicable to the exercise of the Option, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan.
(i)    Exercise Price.  The exercise price per Unit under an Option shall be determined by the Committee at the time the Option is granted and, except with respect to Substitute Awards, may not be less than the Fair Market Value of a Unit as of the date of grant. 
(ii)    Time and Method of Exercise.  The Committee shall determine the Restricted Period and the exercise terms with respect to an Option, which may include, without limitation, a provision for accelerated vesting upon the achievement of specified performance goals or other events, and the method or methods by which payment of the exercise price with respect thereto may be made or deemed to have been made, which may include, without limitation, cash, check acceptable to the Company, withholding Units from an Award, a “broker-assisted cashless” exercise through procedures approved by the Company, or any combination of the above methods.
(iii)    Forfeiture.  Except as otherwise provided in the terms of an Award Agreement, upon termination of a Participant’s employment or consulting services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all unvested Options shall be forfeited by the Participant unless otherwise provided in a written employment agreement between the Participant and the Company or its affiliates.  The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Options; provided, however, that any such waiver shall be effective only to the extent that such waiver will not cause any Option intended to satisfy the requirements of Section 409A of the Code to fail to satisfy such requirements.

(b)    Restricted Units and Phantom Units.  The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Restricted Units and/or Phantom Units shall be granted, the number of Restricted Units or Phantom Units to be granted to each such Participant, the duration of the Restricted Period, the conditions under which the Restricted Units or Phantom Units may become vested or forfeited, which may include, without limitation, a provision for accelerated vesting upon the achievement of specified performance goals in the case of Performance Units, and such other terms and conditions as the Committee may establish with respect to such Awards, including whether DERs are granted with respect to Phantom Units (which may include Phantom Units granted as Performance Units) and whether UDRs are granted with respect to Restricted Units (which may include Restricted Units granted as Performance Units).
(i)    DERs.  To the extent provided by the Committee, in its discretion, a grant of Phantom Units (including Phantom Units granted as Performance Units) may include a tandem DER grant, which may provide that such DERs shall be paid directly to the Participant at the time of distribution of a Unit, be credited to a bookkeeping account (with or without interest in the discretion of the Committee), be reinvested in additional Awards and be subject to the same or different vesting restrictions as the tandem Phantom Unit Award, or be subject to such other provisions or restrictions as determined by the Committee in its discretion.  Absent a contrary provision in an Award Agreement, DERs shall be paid to the Participant without restriction at the same time as ordinary cash distributions are paid by the Partnership to its unitholders.  Notwithstanding the foregoing, DERs shall only be paid in a manner that is either exempt from or compliant with Section 409A of the Code.
(ii)    UDRs.  To the extent provided by the Committee, in its discretion, a grant of Restricted Units (including Restricted Units granted as Performance Units) may provide that the distributions made by the Partnership with respect to the Restricted Units shall be subject to the same forfeiture and other restrictions as the Restricted Unit and, if restricted, such distributions shall be held, without interest, until the Restricted Unit vests or is forfeited with the UDR being paid or forfeited at the same time, as the case may be.  In addition, the Committee may provide that such distributions shall be used to acquire additional Restricted Units for the Participant.  Such additional Restricted Units may be subject to such vesting and other terms as the Committee may prescribe.  Absent such a restriction on the UDRs in an Award Agreement, UDRs shall be paid to the holder of the Restricted Unit without restriction at the same time as cash distributions are paid by the Partnership to its unitholders.  Notwithstanding the foregoing, UDRs shall only be paid in a manner that is either exempt from or compliant with Section 409A of the Code.
(iii)    Forfeitures.  Except as otherwise provided in the terms of an Award Agreement, upon termination of a Participant’s employment or consulting with the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding unvested Restricted Units and Phantom Units (including all unvested Restricted Units and Phantom Units granted as Performance Units) awarded the Participant shall be automatically forfeited on such termination unless otherwise provided in a written employment agreement between the Participant and the 

Company or its Affiliates.  The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Restricted Units and/or Phantom Units; provided, however, that any such waiver shall be effective only to the extent that such waiver will not cause any Award intended to satisfy the requirements of Section 409A of the Code to fail to satisfy such requirements.
(iv)    Lapse of Restrictions.
(A)    Phantom Units.  Upon or as soon as reasonably practical following the vesting of each Phantom Unit (including each Phantom Unit granted as a Performance Unit), but not later than 30 days following such vesting unless an Award Agreement specifically provides for a later date, subject to satisfying the tax withholding obligations set forth in Section 8(b), the Participant shall be entitled to receive one Unit from the Company.
(B)    Restricted Units.  Upon or as soon as reasonably practical following the vesting of each Restricted Unit (including each Restricted Unit granted as a Performance Unit), subject to satisfying the tax withholding obligations set forth in Section 8(b), the Participant shall be entitled to have the restrictions removed from his or her Award so that the Participant then holds an unrestricted Unit.
(c)    Unit Appreciation Rights.  The Committee shall have the authority to determine the Employees, Consultants and Directors to whom Unit Appreciation Rights shall be granted, the number of Units to be covered by each grant, the exercise price therefor and the conditions and limitations applicable to the exercise of the Unit Appreciation Right, including the following terms and conditions and such additional terms and conditions, as the Committee shall determine, that are not inconsistent with the provisions of the Plan.
(i)    Exercise Price.  The exercise price per Unit Appreciation Right shall be determined by the Committee at the time the Unit Appreciation Right is granted and, except with respect to Substitute Awards, may not be less than the Fair Market Value of a Unit as of the date of grant.
(ii)    Time of Exercise.  The Committee shall determine the Restricted Period and the exercise terms with respect to a Unit Appreciation Right, which may include, without limitation, a provision for accelerated vesting upon the achievement of specified performance goals or other events.
(iii)    Forfeitures.  Except as otherwise provided in the terms of an Award Agreement, upon termination of a Participant’s employment with or services to the Company and its Affiliates or membership on the Board, whichever is applicable, for any reason during the applicable Restricted Period, all outstanding unvested Unit Appreciation Rights awarded the Participant shall be automatically forfeited on such termination.  The Committee may, in its discretion, waive in whole or in part such forfeiture with respect to a Participant’s Unit 

Appreciation Rights; provided, however, that any such waiver shall be effective only to the extent that such waiver will not cause any Unit Appreciation Rights intended to satisfy the requirements of Section 409A of the Code to fail to satisfy such requirements.
(d)    Unit Awards. Unit Awards may be granted under the Plan (i) to such Employees, Consultants and/or Directors and in such amounts as the Committee, in its discretion, may select and (ii) subject to such other terms and conditions, including, without limitation, restrictions on transferability, as the Committee may establish with respect to such Awards.
(e)    Substitute Awards.  Awards may be granted under the Plan in substitution for similar awards held by individuals who become Employees, Consultants or Directors as a result of a merger, consolidation or acquisition by the Partnership or one of its Affiliates of another entity or the assets of another entity.  Such Substitute Awards that are Options or Unit Appreciation Rights may have exercise prices that are less than the Fair Market Value of a Unit on the date of the substitution if such substitution complies with the Nonqualified Deferred Compensation Rules (as defined below).
(f)    Performance Units.  The vesting of a Phantom Unit or Restricted Unit, the right of a Participant to receive payment or settlement of any Phantom Unit or Restricted Unit and/or the timing thereof may be subject to such performance conditions as may be specified by the Committee.  The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions, and may exercise its discretion to reduce or increase the amounts payable under any Phantom Unit or Restricted Unit subject to performance conditions.
(g)    General.
(i)    Awards May Be Granted Separately or Together.  Awards may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution for any other Award granted under the Plan or any award granted under any other plan of the Company or any Affiliate.  Awards granted in addition to or in tandem with other Awards or awards granted under any other plan of the Company or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards.
(ii)    Limits on Transfer of Awards.
(A)    Except as provided in paragraph (C) below or as provided in an Award Agreement, each Option and Unit Appreciation Right shall be exercisable only by the Participant during the Participant’s lifetime, or by the person to whom the Participant’s rights shall pass by will or the laws of descent and distribution.
(B)    Except as provided in paragraph (C) below, no Award and no right under any such Award may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant and any such purported 

assignment, alienation, pledge, attachment, sale, transfer or encumbrance, other than by will or the laws of descent and distribution, shall be void and unenforceable against the Company, the Partnership or any Affiliate.
(C)    To the extent specifically provided or approved by the Committee with respect to an Award, an Award may be transferred by a Participant without consideration to immediate family members or related family trusts, limited partnerships or similar entities or on such terms and conditions as the Committee may from time to time establish or by will or the laws of descent and distribution.
(iii)    Term of Awards.  The term of each Award shall be for such period as may be determined by the Committee.
(iv)    Unit Certificates.  All certificates for Units or other securities of the Partnership delivered under the Plan pursuant to any Award or the exercise thereof may be evidenced in any manner deemed appropriate by the Committee, in its sole discretion, including, without limitation, in the form of a certificate issued in the name of the Participant or by book entry, electronic or otherwise, and shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and/or other requirements of the SEC, any securities exchange upon which such Units or other securities are then listed, and any applicable federal or state laws, and the Committee may cause a legend or legends to be inscribed on any such certificates or book entry to make appropriate reference to such restrictions.
(v)    Consideration for Grants.  Awards may be granted for such consideration, including services, as the Committee shall determine.
(vi)    Delivery of Units or other Securities and Payment by Participant of Consideration. Notwithstanding anything in the Plan or any Award Agreement to the contrary, the Company shall not be required to deliver Units pursuant to the exercise or vesting of an Award if such delivery would, in the good faith determination of the Committee, with the advice of counsel, constitute a violation of the Securities Act or any similar or superseding statute or statutes, any other applicable statute or regulation, or the rules or regulations of any applicable law or securities exchange, except that the Committee has discretion to vest the Award to bring it into compliance.   In addition, notwithstanding anything to the contrary herein or in any applicable Award agreement, no Award that constitutes a “deferral of compensation” (within the meaning of section 409A of the Code and the regulations and other authoritative guidance promulgated thereunder (collectively, the “Nonqualified Deferred Compensation Rules”)), and that is not exempt from Section 409A of the Code pursuant to an applicable exemption (any such Award, a “409A Award”) shall be exercisable, be settled or otherwise trigger a payment or distribution upon the occurrence of any event that does not qualify as a permissible time of distribution in respect of such 409A Award under the Nonqualified Deferred Compensation Rules; except that, to the extent permitted under the Nonqualified Deferred Compensation Rules, the time of 

exercise, payment or settlement of a 409A Award shall be accelerated, or payment shall be made under the Plan in respect of such Award, as determined by the Committee in its discretion, to the extent necessary to pay income, withholding, employment or other taxes imposed on such 409A Award. In the event any 409A Award is designed to be paid or distributed upon a Participant’s termination of employment, such payment or distribution shall not occur in the event the Participant holding such 409A Award continues to provide or, in the 12 month period following such termination of employment, is expected to provide, sufficient services to the Company that, under the Company’s applicable policies regarding what constitutes a “separation from service” for purposes of Section 409A of the Code, such Participant does not incur a separation from service for purposes of Section 409A of the Code on the date of termination of the employment relationship. To the extent any 409A Award does not become exercisable or is not settled or otherwise payable upon a Participant’s termination of employment or upon the occurrence of some other event provided in the Plan or an Award agreement as a result of the limitations described in the preceding provisions hereof, such Award shall become exercisable or be settled or payable upon the occurrence of an event that qualifies as a permissible time of distribution in respect of such 409A Award under the Nonqualified Deferred Compensation Rules. No Units or other securities shall be delivered pursuant to any Award until payment in full of any amount required to be paid pursuant to the Plan or the applicable Award Agreement (including, without limitation, any exercise price or tax withholding) is received by the Company. Such payment may be made by such method or methods and in such form or forms as the Committee shall determine, including, without limitation, cash, other Awards, withholding of Units, cashless broker exercises with simultaneous sale, or any combination thereof; provided, however, that the combined value, as determined by the Committee, of all cash and cash equivalents and the Fair Market Value of any such Units or other property so tendered to the Company, as of the date of such tender, is at least equal to the full amount required to be paid to the Company pursuant to the Plan or the applicable Award agreement.  
(vii)    Change in Control.  Unless specifically provided otherwise in an Award Agreement, upon a Change of Control all outstanding Awards shall automatically vest and be payable or become exercisable in full, as the case may be.  In this regard, all Restricted Periods shall terminate and all performance criteria, if any, shall be deemed to have been achieved at the maximum level.  Notwithstanding the foregoing or any provision contained in the applicable Award Agreement, no 409A Award shall be payable or exerciseable as described above unless the Change in Control also constitutes a “change in the ownership or effective control” or “in the ownership of a substantial portion of the assets” within the meaning of the Nonqualified Deferred Compensation Rules.
SECTION 7.    Amendment and Termination.
Except to the extent prohibited by applicable law:
(a)    Amendments to the Plan.  Except as required by applicable law or the rules of the principal securities exchange on which the Units are traded and subject to Section 7(b) below, the 

Board or the Committee may amend, alter, suspend, discontinue, or terminate the Plan in any manner, including increasing the number of Units available for Awards under the Plan, without the consent of any partner, Participant, other holder or beneficiary of an Award, or other Person.
(b)    Amendments to Awards.  Subject to Section 7(a), the Committee may waive any conditions or rights under, amend any terms of, or alter any Award theretofore granted, provided no change, other than pursuant to Section 7(c), in any Award shall materially reduce the benefit to Participant without the consent of such Participant.
(c)    Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events.  Except as otherwise provided in Section 7(g)(vii), the Committee is hereby authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in Section 4(c) of the Plan) affecting the Partnership or the financial statements of the Partnership, or of changes in applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or an outstanding Award:
(i)    provide for either (A) the termination of any Award in exchange for a payment in an amount, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights under such Award (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction or event the Committee determines in good faith that no amount would have been attained upon the exercise of such Award or realization of the Participant’s rights, then such Award may be terminated by the Company without payment) or (B) the replacement of such Award with other rights or property selected by the Committee in its sole discretion having an aggregate value not exceeding the amount that could have been attained upon the exercise of such Award or realization of the Participant’s rights had such Award been currently exercisable or payable or fully vested; 
(ii)    provide that such Award be assumed by the successor or survivor entity, or a parent or subsidiary thereof, or be exchanged for similar options, rights or awards covering the equity of the successor or survivor, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices; 
(iii)    make adjustments in the number and type of Units (or other securities or property) subject to outstanding Awards, and in the number and kind of outstanding Awards or in the terms and conditions of (including the exercise price), and the vesting and performance criteria included in, outstanding Awards, or both; 
(iv)    provide that such Award shall vest or become exercisable or payable, notwithstanding anything to the contrary in the Plan or the applicable Award Agreement; and 

(v)    provide that the Award cannot be exercised or become payable after such event, i.e., shall terminate upon such event. 
Notwithstanding the foregoing, (i) with respect to an above event that is an “equity restructuring” event that would be subject to a compensation expense pursuant to Accounting Standards Codification Topic 718, Compensation — Stock Compensation, or any successor accounting standard, the provisions in Section 4(c) shall control to the extent they are in conflict with the discretionary provisions of this Section 7; provided, however, that nothing in Section 7(c) or Section 4(c) shall be construed as providing any Participant or any beneficiary any rights with respect to the “time value”, “economic opportunity” or “intrinsic value” of an Award or limiting in any manner the Committee’s actions that may be taken with respect to an Award as set forth above or in Section 4(c); and (ii) no action shall be taken under this Section 7 which shall cause an Award to fail to comply with the Nonqualified Deferred Compensation Rules, to the extent applicable to such Award.
SECTION 8.    General Provisions.
(a)    No Rights to Award.  No Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of Participants.  The terms and conditions of Awards need not be the same with respect to each recipient.
(b)    Tax Withholding.  Unless other arrangements have been made that are acceptable to the Company, the Company or any Affiliate is authorized to deduct or withhold, or cause to be deducted or withheld, from any Award, from any payment due or transfer made under any Award or from any compensation or other amount owing to a Participant the amount (in cash, Units, other securities, Units that would otherwise be issued pursuant to such Award or other property) of any applicable taxes payable in respect of the grant or settlement of an Award, its exercise, the lapse of restrictions thereon, or any other payment or transfer under an Award or under the Plan and to take such other action as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes.  Notwithstanding the foregoing, with respect to any Participant who is subject to Rule 16b-3, such tax withholding automatically shall be effected by the Company either by (i) withholding Units otherwise deliverable to the Participant on the vesting or payment of such Award or (ii) requiring the Participant to pay an amount equal to the applicable taxes payable in cash.
(c)    No Right to Employment or Services.  The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any of its Affiliates, to continue as a Consultant, or to remain on the Board, as applicable.  Further, the Company and its Affiliates may at any time dismiss a Participant from employment or terminate a consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan, any Award agreement or other written agreement.
(d)    Governing Law.  The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware without regard to its conflict of laws principles.

(e)    Severability.  If any provision of the Plan or any Award is or becomes, or is deemed to be, invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable law or, if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person or Award and the remainder of the Plan and any such Award shall remain in full force and effect.  If any of the terms or provisions of the Plan or any Award Agreement conflict with the requirements of Rule 16b-3 (as those terms or provisions are applied to Participants who are subject to Section 16(b) of the Exchange Act), then those conflicting terms or provisions shall be deemed inoperative to the extent they so conflict with the requirements of Rule 16b-3 (unless the Board or the Committee, as appropriate, has expressly determined that the Plan or such Award should not comply with Rule 16b-3).  
(f)    Other Laws.  The Committee may refuse to issue or transfer any Units or other consideration under an Award if, in its sole discretion, it determines that the issuance or transfer of such Units or such other consideration might violate any applicable law or regulation, the rules of the principal securities exchange on which the Units are then traded, or entitle the Partnership or an Affiliate to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or beneficiary.  
(g)    No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any participating Affiliate and a Participant or any other Person.  To the extent that any Person acquires a right to receive payments pursuant to an Award, such right shall be no greater than the right of any general unsecured creditor of the Company or any participating Affiliate.  
(h)    No Fractional Units.  No fractional Units shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities, or other property shall be paid or transferred in lieu of any fractional Units or whether such fractional Units or any rights thereto shall be canceled, terminated, or otherwise eliminated.  
(i)    Headings.  Headings are given to the Sections and subsections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provision hereof.
(j)    Facility Payment.  Any amounts payable hereunder to any person under legal disability or who, in the judgment of the Committee, is unable to properly manage his financial affairs, may be paid to the legal representative of such person, or may be applied for the benefit of such person in any manner which the Committee may select, and the Company and its Affiliates shall be relieved of any further liability for payment of such amounts.
(k)    Participation by Affiliates.  With the consent of the Committee, any Affiliate that is not 

considered a single employer with the Partnership under Section 414(b) of the Code or Section 414(c) of the Code may adopt the Plan for the benefit of its Employees, Consultants or Directors by written instrument delivered to the Committee before the grant to such Affiliate’s Employees, Consultants or Directors under the Plan of any Award that is subject to Section 409A of the Code.  In making Awards to Consultants and Employees employed by an entity other than by the Company, the Committee shall be acting on behalf of the Affiliate, and to the extent the Partnership has an  obligation to reimburse the Company for compensation paid to Consultants and Employees for services rendered for the benefit of the Partnership, such payments or reimbursement payments may be made by the Partnership directly to the Affiliate, and, if made to the Company, shall be received by the Company as  agent for the Affiliate.
(l)    Gender and Number.  Words in the masculine gender shall include the feminine gender, the plural shall include the singular and the singular shall include the plural.  
(m)    Compliance with Section 409A of the Code. The Plan is intended to comply and shall be administered in a manner that is intended to comply with Section 409A of the Code and shall be construed and interpreted in accordance with such intent. Payment under the Plan shall be made in a manner that will comply with Section 409A of the Code, including regulations or other guidance issued with respect thereto, except as otherwise determined by the Committee. The applicable provisions of Section 409A of the Code are hereby incorporated by reference and shall control over any contrary provisions herein that conflict therewith.
(n)    Clawback.  Notwithstanding any provisions in the Plan to the contrary, to the extent required by (i) applicable law, including, without limitation, the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any SEC rule or any applicable securities exchange listing standards and/or (ii) any policy that may be adopted by the Board, Awards and amounts paid or payable pursuant to or with respect to Awards shall be subject to clawback to the extent necessary to comply with such law(s) and/or policy, which clawback may include forfeiture, repurchase and/or recoupment of Awards and amounts paid or payable pursuant to or with respect to Awards. 
SECTION 9.    Term of the Plan.
The Plan, as amended and restated hereby, shall be effective as of the date on which it is adopted by the Board, subject to approval by the unitholders of the Partnership as provided below, and shall continue until the earlier of (i) the date terminated by the Board or (ii) the date Units are no longer available for the payment of Awards under the Plan.  However, any Award granted prior to such termination, and the authority of the Board or the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under such Award, shall extend beyond such termination date.  Notwithstanding the foregoing, this amendment and restatement of the Plan is expressly conditioned upon the approval by the holders of a majority of all Units present, or represented, and entitled to vote at a meeting of the Partnership’s unitholders.  If the unitholders of the Partnership should fail to so approve the Plan, this amendment and restatement of the Plan shall not be of any force or effect.exhibit_414.htm - Generated by SEC Publisher for SEC Filing

Table of Contents

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

Telecommunication Service Agreement

 

 

 

Hereby, and under the law, the Parties hereto, to wit:

 

 

 

Empresa Brasileira de Telecomunicações S.A. - EMBRATEL, headquartered at Avenida Presidente Vargas, no. 1012, in the city of Rio de Janeiro, State of Rio de Janeiro, registered with the CNPJ/MF (National Register of Corporations of the Ministry of Treasury) under no. 33.530.486/0001-29, herein represented in the form of its Articles of Incorporation, hereinafter individually called “EMBRATEL” or “Operadot”; and

 

NET Serviços de Comunicação S/A, headquartered at Rua Verbo Divino, no. 1356, in the city of São Paulo, State of São Paulo, registered with the CNPJ/MF under no. 00.108.786/0001-65, and the companies controlled by it (“NET Operations”), duly listed in Exhibit I to this Telecommunication Service Agreement, all of which represented in the form of its articles of incorporation, hereinafter simply called NET; 

 

NET and the Operator  also called, individually, a Parte  and, together, Parties; 

 

 

 

 

WHEREAS: 

 

 

 

(I)                In the coming years the Brazilian telecommunication market anticipates a substantial growth in the demand for internet broadband access services, which will require from the respective providers even more competitive offers in terms of price, quality, and speed;

 

(II)              In order to become more competitive, NET wishes to centralize the provision of internet-related access required for supply, by NET, of the service “Virtua”  to its end customers, contracting them from a single supplier; 

 

(III)           The Operator is able to provide said access, by its own means and/or through third parties, and, because of the prospects that the contracted megabytes will reach high levels, it can significantly contribute to a cutback in costs supported by NET concerning this access;

 

(IV)           NET wishes to contract the provision of said access from the Operator and the Operator wishes to provide it to NET;

 

 

The Parties hereto have resolved to enter into this Telecommunication Service Agreement (“Agreement”), which shall be governed by the applicable regulations and by the following conditions:

 

1 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

 

1.      Clause One – Definitions:

 

1.1       For the purposes hereof, the following definitions apply:

 

a) Service – Telecommunication Service which consists in the provision of internet access, with guaranteed, not shared band, supporting TCP/IP applications (Transmission Control Protocol/Internet Protocol).

b) NET Network – a set of interlinked equipment, cables, and software which belongs to NET.

c) Operator's Internet Network – a set of interlinked equipment, cables, and software which belongs to EMBRATEL (or, as the case may be, which belong to other provider(s) to be hired by EMBRATEL), set up to adequately support the Service supply and provide, the Net Network, with Internet connectivity. 

d) IP Port – connection point for the circuit of access to the Operator's Internet Network, through which the Net Network has access to the Router that provides Bandwidth in a dedicated, exclusive manner. 

e) Packet – a minimum amount of information that a Router can process. 

f) IP Protocol – communication protocol used in the Internet.

g) Bandwidth – maximum Packet output of an IP Port, expressed in Kbit/s (kilobits per second), Mbit/s (megabits per second) or Gbit/s (gigabits per second).

h) IP Address – numeric identification by which any Internet device is unmistakenly referenced. 

i) Domain – identification of an Internet organization or entity.

j) DNS Server – a set of hardware and software able to address the Domain requisition and translate it to the corresponding IP Address.

k) News Server – a set of hardware and software able to store and distribute informative material in discussion list format, called Newsgroup.

l) Associated Procedure – any activity which is based on a procedure other than the Service supply, but which, eventually, may be performed by EMBRATEL, such as, activation, change of address, as well as the change in technical features or Service configuration.

m) Supplementary Service – a set of facilities in connection with the Service provided by EMBRATEL to NET, such as Newsgroup and SMTP.

n) Newsgroup – Supplementary Service at NET's choice offered to all types of Service, on payment, which consists of feeding the Net Network “News” Server with information on discussion groups found on the Internet to which EMBRATEL has or may have access.

o) SMTP (Simple Mail Transfer Protocol) – Supplementary Service at NET's choice offered to all Service types, which consists of regularly feeding the NET mail Server, in real time or whenever the server is accessible, where NET is in charge of mail distribution to its users.  

p) Domain Registration – A Supplementary Service which consists of registered and lodging in the DNS Server of the Operator's Internet Network the Net primary Domain(s) and secondary Domain(s), as informed through Exhibit II hereto, where a primary Domain and a secondary Domain are registered free of charge and additional Domains are registered at a charge. 

q) Internet Acceptable Use Policies – a set of rule to use the Internet applied by the market and necessary for the proper supply of the Service by the Operator. 

r) Standard Maintenance Period – a weekly period, defined as Tuesdays and Thursdays, from 04:00 (four) am to 07:00 (seven) am, when the scheduled preventive or corrective maintenance of the Operator's Internet Network can be carried out

s) Note of Complaint – an electronic record created and maintained by EMBRATEL, for 180 (one hundred and eighty) days, from the complaint made by NET to the EMBRATEL customer service. 

 

2 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

t) Net Income: Gross income minus (i) the taxes PIS/COFINS, ICMS, FUST, and FUNTTEL, (ii) discounts, reimbursements and/or rebates.

u) Measure Traffic: measured traffic based on the methodology described below:

·                     In all the nodes of the NET Network the traffic in course is measured, either upstream or downstream, at 5-minute intervals;

·                     For each measured day, the largest volume (peak) of the measured traffic is registered as described in the foregoing item;

·                     To set the traffic for the month in each network node, the average of measured daily peaks is used. 

 

 

2.      Clause Two – Object

 

2.1. The object of this Agreement is supply, by the Operator to NET, of the multimedia communication service consisting in the provision of internet dedicated access, with guaranteed not shared bandwidth, supporting TCP/IP (Transmission Control Protocol/Internet Protocol) applications, for supply of the “Vírtua” service by NET to its end customers;

 

2.1.1 To perform this Agreement the Operator may use its own access or someone else's, at its sole discretion, observing the parameters, ratios, and requisites set forth in this Agreement and in its Exhibits. 

 

 

3.      Clausea Three – Attached  Documents

 

3.1 This Agreement comprises the following documents, duly signed by the Parties who declare to be fully aware of them:

 

EXHIBIT I – NET Operations;

EXHIBIT II – Monthly traffic per locality;

EXHIBIT III – Operating flow diagram;

EXHIBIT IV – Demand forecast;

EXHIBIT V – SLA.

 

3.2 The aforementioned exhibits may be modified, and other Exhibits may be created as well, to gather documents and technical specification regarding the Service, as long as agreed upon by the Parties and duly executed by them. 

 

3.3 In case of divergence among the applicable documents the most recent documents will take precedence over the oldest ones, save the cases of priority expressly set out herein. 

 

 

4.      Clause Four – Obligations of the Parties

 

 

4.1 Obligations of both NET and the Operator:

 

4.1.1    Perform, upon request of the other Party and in conjunction, access qualification, acceptance and/or recovery tests.

 

3 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

4.1.2    Maintain and/or control, during the term hereof, each and every legal and regulatory concession, authorization, permission, or license, necessary for the performance of the object hereof. 

4.1.3    Maintain the security conditions required to ensure the integrity of the other party's equipment lying on their premises. 

4.1.4    Preserve the secrecy and use of any confidential information restricted to the performance hereof, be it related to technical, operating, commercial, legal, and financial aspects of the other Party, to which they may have access due to the performance hereof, observing the conditions under Clause Fourteen. 

4.1.5    Refund to the affected Party any direct damages demonstrably sustained by it, particularly to the equipment and facilities of either Party, expressly excluding any obligation of reimbursement for indirect damages and lost profits. 

4.1.6    Respect, for the entry of their personnel and/or representatives, the safety rules and controls in effect at the other Party's premises. 

 

 

4.2 The obligations of NET are:

 

4.2.1    Furnish the information required to provide the service and any other which may be requested by the Operator.

4.2.2    Indicate and maintain commercial and technical personnel in charge to be contacted by the Operator.

4.2.3    Protect itself from the loss of data, network invasion, and other damages caused by Internet use. 

4.2.4    Be in charge of mounting and setting up the NET Network hardware and software components, preferably with the assistance of specialized professionals. 

4.2.5    Be responsible for registering the Domain and paying the corresponding fees, and also setting up and maintaining its primary DNS, should it choose to use DNA Server from the Operator's Internet Network as the secondary DNS Server of the network to be interconnected.

4.2.6    Return the IP Address assigned by the Operator, should NET become an ASN (“Autonomous System Number”), providing then its own IP Addresses, or at the end of this Agreement.  

4.2.7    Allow, at any time, free access to the Operator's technicians on its premises, according to its security rules.

4.2.8    Provide, its establishment, with an appropriate location and infrastructure required for the correct installation and operation of the equipment made available by the Operator to provide the Service. 

4.2.9    Neither remove nor allow others to remove, from any equipment, the serial numbers, the model, name, or brand descriptions, equipment certification tags and nay other sign of ownership. All the equipment parts and components will remain individual property items, regardless of their connection, adaptation or link to any kind to some other equipment. 

4.2.10  Neither remove intellectual property warnings, erase, destroy, corrupt nor commit any act which violates industrial or intellectual property rights of any kind, particularly the infringement of copyrights, trade or industrial secrets, or any brand related to the equipment installed by the Operator.

4.2.11  In any event of termination hereof, place at the Operator's disposal, for immediate removal from its premises and transportation, the equipment provided by it due to the supply of the service, Bill of Shipping with the due reference to the Bill of Sale delivered together with said equipment.

 

4 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

4.2.12  In case of damages cause to the equipment for any reason whatsoever, including but not limited to the hypotheses of (i) lack of adequate infrastructure, (ii) loss, (iii) robbery, (iv) theft, or (v) fire, NET will pay to the Operator the market value for the acquisition of new unit(s) at the time of the replacement. If it is impossible, for any reason whatsoever, to replace the equipment for a model which is identical to the one originally provided, we will consider the market value for the acquisition of some equipment which is equivalent to it or has replaced in the production line. 

 

 

4.3 The Obligations of the Operator are:

 

4.3.1    Provide the Service meeting the requisites set out in Exhibit IV hereto, guaranteeing the contracted Bandwidth and the availability of the Internet access. 

4.3.2    Inform NET, 30 (thirty) days in advance, should any change occur in the days of the week or timetables of the Operator's Internet Network Standard Maintenance Period. 

4.3.3    Arrange with NET a date to run tests on the NET Network. 

4.3.4    Inform NET of the existence of pending issues under its responsibility which prevent service activation. 

4.3.5    Maintain a full-time customer service, every day of the week, including bank holidays, reached by toll-free telephone, to address any complaints about service disruption. 

4.3.6    Diagnose Service failures as reported by NET.

4.3.7    Repair service failures, in compliance with the requirements under Exhibit IV hereto, keeping NET informed of any actual actions until the full recovery of the Services.

 

 

5.      Clause Five – The Rights of NET:

 

5.1       The rights of NET are, among others provided for in the effective regulation:

 

5.1.1    The restoration of the integrity of the rights concerning the Service provided, based on the exclusion of arrears or any arrangement made with the Operator, with the immediate removal of any default information regarding it;

5.1.2    Be treated in nondiscriminatory way as to access conditions and Service fruition; 

5.1.3    Enjoy a continuous Service during the term hereof; 

5.1.4    Forward any complaints or claims to the consumer protection agencies and/or National Telecommunications Agency whose addresses and data are the following:

 

a)         ANATEL Site: www.anatel.gov.br   

 

b)         ANATEL Library Site: http://www.anatel.gov.br/biblioteca/default.asp 

            ANATEL addresses and telephones:

            Headquarters - Brasília:

            End.: SAUS Quadra 06 Blocos E e H

            CEP 70.070-940 - Brasília - DF 

 

c)         Library - Anatel Headquarters - Bl. F - Térreo

 

5 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

         Electronic Service:

         Customer Service: 133 

         Pabx: (0XX61) 2312-2000 

         Fax: (0XX61) 2312-2002

 

 

6.      Remuneration 

 

6.1           The price to be paid by NET to the Operator for the provision of access to the internet contracted hereby will be assessed as follows: 

             

                                   6.1.1.   Addition of [***]%[***] to the Net Revenue of the “Virtua” service, which cannot lie below R$ [***]. 

 

                                   6.1.2.   In order to obtain the amount payable to the Operator, as stipulated in clause 6.1.1, as long as the Capacity Acquisition Agreement executed by the Parties on December 29, 2009 should stand, the amount, net of taxes, corresponding to the capacity already contracted by means of said Capacity Acquisition Agreement, will not be considered.  

 

7.      Payment  

 

7.1 NET must send to the Operator, on a monthly basis, up until the second business days from 26th (twenty-sixth) day of each month (inclusive), a file with the following information: (i) the total amount billed to the “Vírtua” service customers; (ii) the IP traffic readout per link, for all links of the installed base; (iii) the result of the addition of the [***]% [***] to the previous revenue billed for. 

 

7.1.1 The file described in the foregoing item will specify the date also per locality of the “Vírtua” service charge.

 

7.3 The Operator will make out the telecommunication service bills, for each one of its establishments in the States where the Telecommunication Services are provided. 

 

7.4 The fiscal documents and invoice(s) will be sent to NET at the address specified in the Preamble to this Agreement, at least, 30 (thirty) days in advance in relation to the date of their respective maturity.  

 

7.5 NET will inform the Operator, until the 15th day of the month following the respective month when the Telecommunication Services have been provided, the income assess in conformity with item 6.1 of Clause Six above.  

 

7.5.1 If the delivery date of said documents is not met by EMBRATEL, the maturity of the invoices will be extended for as many days as the delay in said delivery should last.

 

7.6 The rules under this Clause are further explained in Exhibit III – Operating Flow Diagram.

  

 

 

 

6 

 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

8.        SLA  

 

8.1 The Parties undertake to observe all the Service Level Agreements - SLA stipulated in the Exhibits hereto, as well as respective penalties under the respective Exhibits.

 

  

 

9.      Term 

 

9.1 This Agreement comes into effect on the date of its execution and delivery for 03 (three) years, to be automatically renewed for equal and successive periods of 01 (one) year, save on request to the contrary by either Party, at least 90 (ninety) days before the date it is set to expire.   

 

            9.1.1 It is hereby agreed by the Parties that, for all purposes under the law, the effects of this agreement do retroact to May 1, 2011.

 

10.  Termination 

 

10.1     This Agreement may be terminated in the following events:

 

10.1.1 Expiry hereof, should either Party choose not to renew it automatically, as stipulated in item 9.1 above;

 

10.1.2  Cancellation, either partial or total, in the best interest of the Parties, as stated in writing. 

 

10.1.3 Early termination, upon prior extrajudicial notice, in the following circumstances:

 

10.1.2.1           Insolvency, homologation of judicial or extrajudicial reorganization, declaration of bankruptcy or judicial or judicial winding up of either Party; 

 

10.1.2.2           Breach of obligation, if the defaulting Party, once notified, in writing, by the other Party, thirty 30 (thirty) days beforehand, to remedy the default, fails to do so within the deadline set or another period agreed by the Parties in writing.  

 

10.2     In any event of termination hereof, a minimum 6 (six)-month transition period after the date of the termination must be provided, and naturally, to ensure the ongoing provision of the “Vírtua” service to its end customers, NET may contract the Internet dedicated access with third-party provider(s), deducting the amounts paid to them from the price that would have been paid to EMBRATEL. 

 

 

11.  Responsibilities 

 

11.1 Without prejudice to the other provisions set forth herein, only direct damages will be indemnified, as long as proven so, as caused by one Party to the other, either by themselves, or by its employees, agents, or third parties hired to perform this Agreement, expressly excluding any indemnity or accountability by the Parties for lost profits, indirect damages, and commercial failures, save in the hypothesis under item 11.1.1 below.

7 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

11.1.1 One Party will be liable to the other, under the terms of article 402 of the Civil Code (Act no. 10406, dated January 11, 2002), for any proven malicious action or inaction which violates the obligations hereunder. 

 

 

12.  Review 

 

12.1 The Parties promise, in good faith, to evaluate together and, as the case may be, change the terms and conditions hereunder whenever either Party sensibly claims an economic-financial unbalance. 

 

13.  Assignment 

 

13.1 The Parties may only assign or transfer this Agreement or any benefit, interest, right, and obligation arising from it, fully or partly, to third parties, with the prior consent in writing of the other Party.   

 

13.1.1 Notwithstanding the provision in the opening section, the Parties may fully or partly assign its obligations and rights hereunder to any of its Subsidiaries, informing the other Party thereof. 

 

13.1.2 The term Subsidiary means each and every corporation, company, partnership, joint venture, or entity which, directly or indirectly, holds the control, is controlled by or is under the common control of either Party. 

 

 

14.  Confidentiality 

 

14.1 The Parties themselves and through their employees, representatives and/or subcontractors involved in the performance hereof undertake to keep absolute secrecy and confidentiality about this Agreement and all and any Confidential Information, also they are expressly forbidden to assign, transfer, disclose, at any title, by any form or means, save with the express consent in writing of the other Parties, this Agreement and/or the Confidential Information, under penalty of answering for any losses or damages demonstrably caused them for overlooking this prohibition.

 

14.2 For the effects of this Clause, Confidential Information means all and any information, datum, document, project, designed product, service or designed service, subcontractor, customer, prospect customer, record of details on customer calls, computer software, program, process, method, knowledge, invention, idea, marketing promotion, discovery, current or designed activity, research, development or another material to which the Parties should have access by virtue of this Agreement, any information or knowledge regarding the business or trade secrets of either Party, the technical and commercial information, and others regarding the corporate operation and development of the Parties which may be transmitted by one Party to the other: (a) in a graphical, written or any other form which may read or deciphered by machines or computers; (b) spoken form; and (c) other forms which incorporate or expose the content of the information and bearing the words “CONFIDENTIAL” and/or “SECRET” or any other similar expressions. 

 

8 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

14.3 However, the term Confidential Information does not apply to information which: (a) is known to the receiving Party there being no restriction to its confidentiality upon its receipt, or independently developed by the receiving Party; (b) is obtained from others not subject to any confidentiality obligation and without breach of secrecy by the receiving Party; (c) is in public domain when received, or becomes public domain as of then, not for the receiving Party's fault; (d) is disclosed without any restriction to either Party be any third party not subject to any confidentiality obligation; or (e) is disclosed by force of law or regulation, court order or act by the proper governmental authority, whereas, in this case, the receiving Party must promptly notify in writing the disclosing Party before the disclosure and limit it to the strictly necessary to comply with the order. 

 

15.  Miscellaneous Provisions

 

15.1 The Parties shall provided one another with each and every piece of information and element required to direct any regulatory, administrative, judicial and/or extrajudicial procedure which may be necessary due to or in relation to the performance hereof.  

 

15.2 The Parties assure that the undersigned herein are the legal representatives competent to undertake obligations in their name and effectively represent their interests.

 

15.3 Save specific provisions, the Parties will do their communication, notification, and arrangements in writing, except for urgent matters, where the spoken arrangements must be confirmed in writing within 72 (seventy-two) hours afterwards, by its undersigned representatives:

 

By NET: 

[***]

 

By EMBRATEL:

[***]

 

 

15.4 The Parties will appoint, in writing, and keep up-to-date, their respective contacts, to address the matters regarding this Agreement.  

 

15.5 The Parties establish the addresses in the Preamble for the receipt of notices and delivery of mail. 

 

15.6 Should either fail to exercise their rights or options arising from this Agreement, or the tolerance with the delayed performance of the obligations of the other Party, will not affect those rights and options, which may be exercised at any time, at the sole discretion of the interested Party, not changing the conditions set forth herein. .

 

15.7 Any change to the conditions hereunder must be formalized through an amendment signed by both Parties. 

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

15.8 If any provision hereof is deemed contrary to the law by a competent court, said provision will apply as much as possible, whilst the other provisions will remain in full force and effect. 

 

15.9 The act of God or force majeure will exclude any liability, as stipulated in the sole paragraph of article 393 of the Brazilian Civil Code.

 

15.9.1 The Party affected by any act of God or force majeure must notify the other, promptly and in writing, of the extension of the fact and the estimated time frame during which it will be unable to perform or by which it will have to put off the performance of its obligations arising from this Agreement. 

 

15.9.2 The Party affected by any act of God or force majeure will make its best efforts to put an end to their effects.

 

15.9.3 Once the effects of the act of God or force majeure have passed, the affected Party shall, immediately and in writing, notify the other of the fact, thus restoring the original state of affairs. 

 

15.9.4 If the occurrence of some act of God or force majeure impairs only partially the performance of the obligations hereunder by either Party, this Party must perform the obligations which have not been affected by the occurrence of the act of God or force majeure, as much as possible. 

 

15.10 No provision hereof must be construed so as to allow, directly or indirectly, the concession to third parties of any right, appeal or complaint, for any reason whatsoever.

 

15.11 In all issues regarding this Agreement, neither Party may declare to have any authority to assume or create any explicit or implicit obligation on behalf of the other Party, save the provisions expressly stipulated herein. 

 

15.12 The Parties are companies totally independent from each other, so that no provision herein may be construed so as to create any employment relationship between the Parties and between the employees of one Party and the other as well. 

 

15.13 The Parties acknowledge that the brands and logos of the Party are highly regarded assets, so they promise to respect and protect them, refraining from using them directly or indirectly for any purpose other than those expressly allowed hereby.  

 

15.14 This Agreement entails the total understanding between the Parties with regard to its object, observing the provision under Clause Sixteen below.  

 

15.15 This Agreement is binding on the Parties and their successors, to any title, in all of its rights and obligations. 

 

 

16.  Cancellation of the Letter of Agreement

 

16.1 Hereby, the Parties resolve to cancel the Letter of Agreement signed on June 26, 2003 (“Letter of Agreement”), and all of its Amendments, Meeting Minutes, and ancillary documents. 

For the purposes of this Agreement, the ancillary documents to the Letter of Agreement, its Amendments, and the Meeting Minutes dated July 21, 2008 and March 17, 2009, are: Agreements VES-9-INN-00433-2005 / 00432-2005 / 00430-2005 / 00429-2005 / 00428-2005 / 00427-2005 / 00426-2005 / 00262-2005 / VES-7-INN-00028-2006/00027-2006 / VEM-3-INN-00003-2002 / VEM-3-INN-0154-2002 / VES-9-INN-0233-2004 / V-7-INN-007-2007 / V-10-INN-0511-2007 and their amendments (Agreements made with VIVAX LTDA.); Agreement VEM-5-INN-418-2005 and its amendments (Agreements made with ESC 90 Telecomunicações Ltda.); Agreement VEM-9-INN-00038-2005 and its amendments (Agreements made with 614 Serviços de Internet Maceió Ltda.) and Agreement VEM-9-INN-0036-2005 and its amendments (Agreement made with 614 Serviços de Internet João Pessoa Ltda.).

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

17.  Venue 

 

17.1 The Parties hereto elect the Central Courthouse of Rio de Janeiro – RJ, to the detriment of any other however competent it may be. 

 

 

Rio de Janeiro, March 28, 2012.

 

 

 

BY EMBRATEL:

 

	

   /s/ José Formoso Martinez
	

    
	

   /s/ Isaac Berensztejn

	

   José Formoso Martinez

   President

    

    
	

    
	

   Isaac Berensztejn

   Economic-Financial Executive Officer

BY NET:

 

	

   /s/ José Antônio Guaraldi Félix
	

    
	

   /s/ Roberto Catalão Cardoso

	

   José Antônio Guaraldi Félix

   Managing Director 
	

    
	

   Roberto Catalão Cardoso

   Financial Director 

 

Witnesses:

 

	

   /s/ Nelson Laureano Filho
	

    
	

   /s/ Karina Mendes Gonçalves

	

   Nelson Laureano Filho

   CPF/MF:

    
	

    
	

   Karina Mendes Gonçalves

   CPF/MF:

 

 

 

 

 

 

 

 

 

11 

 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

EXHIBIT I –NET Operations

Telecommunication Service Agreement

 

 

 

NET SERVIÇOS DE COMUNICAÇÃO S.A., a company headquartered in the city of São Paulo, State of São Paulo, at Rua Verbo Divino n.o 1356, 1o andar, registered with the CNPJ/MF under no. 00.108.786/0001-65, and its branches:

 

	Branch: NET AMERICANA, a company established in the town of Americana, State of São Paulo, at Avenida José Meneghel n.o 65, sala 17, registered with the CNPJ/MF under no.  00.108.786/0064-49;

	BRANCH: NET ANÁPOLIS, a company established in the town of Anápolis, State of Goiás, at Rua Senai n.o 179, registered with the CNPJ/MF under no. 00.108.786/0033-42;
 

	Branch: NET ARAPONGAS, a company established in the town of Arapongas, State of Paraná, at Rua Marabú n.o 542, registered with the CNPJ/MF under no. 00.108.786/0083-01;
 

	Branch: NET ARAÇATUBA, a company established in the town of Araçatuba, State of São Paulo, at Avenida Joaquim Pompeu de Toledo n.o 1048, registered with the CNPJ/MF under no. 00.108.786/0026-13;
 

	Branch: NET ARARAQUARA, a company established in the town of Araraquara, State of São Paulo, at Rua Nove de Julho n.o 2117, registered with the CNPJ/MF under no. 00.108.786/0133-05;
 

	Branch: NET ARARAS, a company established in the town of Araras, State of São Paulo, at Rua Francisco Leite n.o 300, sala 1, parte, registered with the CNPJ/MF under no. 00.108.786/0006-70;
 

	Branch: NET ATIBAIA, a company established in the town of Atibaia, State of São Paulo, na Alameda Professor Lucas Nogueira Garcez n.o 1905, parte, registered with the CNPJ/MF under no. 00.108.786/0009-12;
 

	Branch: NET BAGÉ, a company established in the town of Bagé, State of  Rio Grande do Sul, at Rua do Acampamento n.o 2550, registered with the CNPJ/MF under no. 00.108.786/0066-00;
 

	Branch: NET BARRA MANSA, a company established in the town of Barra Mansa, State of  Rio de Janeiro, at Rua Aldo Chiesse n.o 186, registered with the CNPJ/MF under no. 00.108.786/0112-80;
 

	Branch: NET BAURU, a company headquartered in the town of Bauru, State of São Paulo, at Avenida Duque de Caxias n.o 4-66, registered with the CNPJ/MF under no. 00.108.786/0043-17;
 

	Branch: NET BELO HORIZONTE, a company headquartered in the town of Belo Horizonte, State of Minas Gerais, at Avenida Renascença n.o 515, registered with the CNPJ/MF under n.o 00.108.786/0153-59;
 

	Branch: NET BENTO GONÇALVES, a company established in the town of Bento Gonçalves, State of Rio Grande do Sul, at Rua Saldanha Marinho n.o 733/737, sala 03, parte, Centro, registered with the CNPJ/MF under no. 00.108.786/0049-00;
 

	Branch: NET BERTIOGA, a company established in the town of Bertioga, State of São Paulo, at Avenida São Lourenço n.o 960, registered with the CNPJ/MF under no. 00.108.786/0019-94

 

12 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET BLUMENAU, a company established in the town of Blumenau, State of Santa Catarina, at Avenida Brasil n.o 60, parte, registered with the CNPJ/MF under no. 00.108.786/0041-52;
 

	Branch: NET BOTUCATU,a company established in the town of Botucatu, State of São Paulo, at Rua Antônio Ferrucio Mori n.o 207, parte, registered with the CNPJ/MF under no. 00.108.786/0120-90;
 

	Branch: NET BRAGANÇA PAULISTA, a company established in the town of Bragança Paulista, State of São Paulo, at Avenida Antônio Pires Pimentel n.o 2046, parte, registered with the CNPJ/MF under no. 00.108.786/0008-31;
 

	Branch: NET CAÇAPAVA, a company established in the town of Caçapava, State of São Paulo, at Rua Treze de Maio n.o 153, sala 06, registered with the CNPJ/MF under no. 00.108.786/0081-40;
 

	Branch: NET CAMPINAS, a company headquartered in the town of Campinas, State of São Paulo, at Rua Jasmim n.o 660, bairro Mansões Santo Antonio, registered with the CNPJ/MF under no. 00.108.786/0060-15; 
 

	Branch: NET CAMPO GRANDE, a company established in the town of Campo Grande, State of  Mato Grosso do Sul, at Avenida Afonso Pena n.o 3004, registered with the CNPJ/MF under no. 00.108.786/0044-03; 
 

	Branch: NET CASCAVEL, a company established in the town of Cascavel, State of  Paraná, at Rua São Paulo n.o 1304, parte, registered with the CNPJ/MF sob n.o 00.108.786/0137-39; 
 

	Branch: NET CAPÃO DA CANOA, a company established in the town of Capão da Canoa, State of  Rio Grande do Sul, at Rua Andira n.o 625, parte, registered with the CNPJ/MF under no. 00.108.786/0054-77; 
 

	Branch: NET CAXIAS DO SUL, a company established in the town of Caxias do Sul, State of  Rio Grande do Sul, Rua Os 18 do Forte no 1236, parte, registered with the CNPJ/MF under no. 00.108.786/0076-82;
 

	Branch: NET CIANORTE, established in the town of Cianorte, State of  Paraná, at Praça Raposo Tavares n.o 378, registered with the CNPJ/MF under no. 00.108.786/0134-96; 
 

	Branch: NET CHAPECÓ, a company established in the town of Chapecó, State of Santa Catarina, at Rua Nereu Ramos no 237 E, sala 01, parte, registered with the CNPJ/MF under no. 00.108.786/0037-76; 
 

	Branch: NET CRICIÚMA, a company established in the town of Criciúma, State of Santa Catarina, at Rua Joaquim Nabuco n.o 458, registered with the CNPJ/MF under no. 00.108.786/0119-57; 
 

	Branch: NET CRUZ ALTA, a company established in the town of Cruz Alta, State of  Rio Grande do Sul, at Rua Pinheiro Machado n.o 1157, parte, registered with the CNPJ/MF under no. 00.108.786/0048-29; 
 

	Branch: NET CUBATÃO, a company established in the town of Cubatão, State of São Paulo, at Avenida Nove de Abril n.o 3.086, loja térreo, registered with the CNPJ/MF under no. 00.108.786/0101-28; 

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET CURITIBA, a company established in the town of Curitiba, State of  Paraná, at Rua Mamoré n.o 340, parte, registered with the CNPJ/MF under no. 00.108.786/0097-07;
 

	Branch: NET DIADEMA, a company established in the town of Diadema, State of São Paulo, at Rua Orense n.o 187, sala 1, registered with the CNPJ/MF under no. 00.108.786/0028-85;
 

	Branch: NET ERECHIM, a company established in the town of Erechim, State of  Rio Grande do Sul, at Rua Tiradentes no 356, parte, registered with the CNPJ/MF under no. 00.108.786/0057-10;
 

	Branch: NET FARROUPILHA, a company established in the town of Farroupilha, State of  Rio Grande do Sul, Rua Rui Barbosa no 235 sala 1, parte, registered with the CNPJ/MF under no. 00.108.786/0077-63;
 

	Branch: NET FLORIANÓPOLIS, a company established in the city of Florianópolis, State of Santa Catarina, at Avenida Rio Branco n.o 808, parte, registered with the CNPJ/MF under no. 00.108.786/0035-04;
 

	Branch: NET FRANCA, a company established in the town of Franca, State of São Paulo, at Rua Carmem Irene Batista n.o 2.837, registered with the CNPJ/MF under no. 00.108.786/0055-58;
 

	Branch: NET GOIÂNIA, a company headquartered in the town of Goiânia, State of Goiás, at Rua 15, Quadra j-15, lote 08, n.o 970, Setor Marista, registered with the CNPJ/MF under no. 00.108.786/0034-23;
 

	Branch: NET GUARAPUAVA, a company established in the town of Guarapuava, State of  Paraná, at Rua Conselheiro Jesuíno Marcondes n.o 2070, Santa Cruz, registered with the CNPJ/MF under no. 00.108.786/0136-58;
 

	Branch: NET GUARUJÁ, a company established in the town of Guarujá, State of São Paulo, at Rua Montenegro n.o 59, Centro, registered with the CNPJ/MF under no. 00.108.786/0018-03;
 

	Branch: NET GUARULHOS, a company established in the city of Guarulhos, State of São Paulo, Avenida Doutor Timóteo Penteado n.o 2340/2344, parte, registered with the CNPJ/MF under no. 00.108.786/0125-03;
 

	Branch: NET HORTOLÂNDIA, a company established in the town of Hortolândia, State of São Paulo, Rua Luiz Camilo de Camargo n.o 860, sala 6, registered with the CNPJ/MF under no. 00.108.786/0109-85;
 

	Branch: NET INDAIATUBA, a company established in the town of Indaiatuba, State of São Paulo, at Rua Onze de Junho n.o 1849, parte, registered with the CNPJ/MF under no. 00.108.786/0042-33
 

	Branch: NET ITAPETININGA, a company established in the town of Itapetininga, State of São Paulo, at Avenida Professor Francisco Valio n.o 405, parte, registered with the CNPJ/MF under no. 00.108.786/0010-56;
 

	Branch: NET ITU, a company established in the town of Itu, State of São Paulo, at Praça Padre Miguel n.o 66, parte, registered with the CNPJ/MF under no. 00.108.786/0111-08;

 

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET JAU, a company established in the town of Jaú, State of São Paulo, at Avenida Nenê Galvão n.o 2871, parte, registered with the CNPJ/MF under no. 00.108.786/0132-24;
 

	Branch: NET JOÃO PESSOA, a company established in the town of João Pessoa, State of Paraíba, at Avenida Estevão Gerson da Cunha n.o 145, Bl. 10, BR 230KM, parte, Água Fria, registered with the CNPJ/MF under no. 00.108.786/0140-34;
 

	Branch: NET JOINVILLE, a company established in the town of Joinville, State of Santa Catarina, at Rua Presidente Campos Salles n.o 228, registered with the CNPJ under no. 00.108.786/0040-71;
 

	Branch: NET JUNDIAÍ, a company established in the town of Jundiaí, State of São Paulo, at Rua Professor João Batista Curado n.o 151, parte, Anhangabaú, registered with the CNPJ/MF under no. 00.108.786/0031-80;
 

	Branch: NET LAJEADO, a company established in the town of Lajeado, State of  Rio Grande do Sul, Av. Sete de Setembro no 184, sala 101, parte, registered with the CNPJ/MF under no. 00.108.786/0047-48;
 

	Branch: NET LIMEIRA, a company established in the town of Limeira, State of São Paulo, at Rua Barão de Campinas n.o 287, parte, registered with the CNPJ/MF under no. 00.108.786/0022-90;
 

	Branch: NET LONDRINA, a company established in the town of Londrina, State of  Paraná, at Rua Santos n.o 737, registered with the CNPJ/MF under no. 00.108.786/0085-73;
 

	Branch: NET MACEIÓ, a company established in the town of Maceió, State of Alagoas, at Rua Industrial Moacir Duarte n.o 49, parte, Mangabeiras, registered with the CNPJ/MF under no. 00.108.786/0138-10;
 

	Branch: NET MARINGÁ, a company established in the town of Maringá, State of  Paraná, at Avenida Nóbrega n.o 494, registered with the CNPJ/MF under no. 00.108.786/0082-20;
 

	Branch: NET MANAUS, a company established in the town of Manaus, Amazonas, at Rua Belém n.o 292, sala 3, registered with the CNPJ/MF under no. 00.108.786/0098-98;
 

	Branch: NET MARÍLIA, a company established in the town of Marília, State of São Paulo, at Avenida Rio Branco n.o 1441, Salgado Filho, registered with the CNPJ/MF under no. 00.108.786/0122-52;
 

	Branch: NET MAUÁ, a company established in the town of Mauá, State of São Paulo, at Rua Dom José Gaspar n.o 890, sala 8, registered with the CNPJ/MF under no. 00.108.786/0007-50;
 

	Branch: NET MOGI DAS CRUZES, a company established in the town of Mogi das Cruzes, State of São Paulo, at Rua Gaspar Conqueiro n.o 243, parte, registered with the CNPJ/MF under no. 00.108.786/0017-22;
 

	Branch: NET MOGI GUAÇU, a company established in the town of Mogi Guaçu, State of São Paulo, at Rua Chico de Paula n.o 958, parte, registered with the CNPJ/MF under no. 00.108.786/0016-41;
 

	Branch: NET MOGI MIRIM, a company established in the town of Mogi Mirim, State of São Paulo, at Rua Maestro Carlos Gomes n.o 234, registered with the CNPJ/MF under no. 00.108.786/0012-18; 

 

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET NOVO HAMBURGO, a company established in the town of Novo Hamburgo, State of  Rio Grande do Sul, at Rua Gomes Portinho no 619, parte, registered with the CNPJ/MF under no. 00.108.786/0072-59;
 

	Branch: NET PASSO FUNDO, a company established in the town of Passo Fundo, State of  Rio Grande do Sul, at Rua Fagundes Reis no 654, parte, registered with the CNPJ/MF under no. 00.108.786/0045-86;
 

	Branch: NET PELOTAS, a company established in the town of Pelotas, State of  Rio Grande do Sul, at Rua Padre Anchieta no 2226, parte, registered with the CNPJ/MF under no. 00.108.786/0069-53;
 

	Branch: NET PINDAMONHANGABA, a company established in the town of Pindamonhangaba, State of São Paulo, at Rua Major José dos Santos Moreira n.o 433, parte, registered with the CNPJ/MF under no. 00.108.786/0130-62;
 

	Branch: NET PIRACICABA, a company established in the town of Piracicaba, State of São Paulo, at Avenida Independência n.o 3552, parte, registered with the CNPJ/MF under no. 00.108.786/0090-30;
 

	Branch: NET PONTA GROSSA, a company established in the town of Ponta Grossa, State of  Paraná, at Rua Dr. Paula Xavier n.o 655, Centro, registered with the CNPJ/MF under no. 00.108.786/0135-77;
 

	Branch: NET PORTO ALEGRE, a company established in the town of Porto Alegre, State of  Rio Grande do Sul, at Rua Silveiro n.o 1.111, registered with the CNPJ/MF under no. 00.108.786/0065-20;
 

	Branch: NET PRAIA GRANDE, a company established in the town of Praia Grande, State of São Paulo, at Rua Acre n.o 47, registered with the CNPJ/MF under no. 00.108.786/0105-51;
 

	Branch: NET RECIFE, a company established in the town of Recife, State of  Pernambuco, at Rua Francisco Alves n.o 100, registered with the CNPJ/MF under no. 00.108.786/0030-08;
 

	Branch: NET RESENDE,  a company established in the town of Resende, State of  Rio de Janeiro, at Rua Nicolau Taranto n.o 57, registered with the CNPJ/MF under no. 00.108.786/0107-13;
 

	Branch: NET RIBEIRÃO PRETO, a company headquartered in the town of Ribeirão Preto, State of São Paulo, at Rua Antonio Fernandes Figueiroa n.o 1675, registered with the CNPJ/MF under no. 00.108.786/0096-26;
 

	Branch: NET RIO CLARO, a company established in the town of Rio Claro, State of São Paulo, at Avenida Dois n.o 346, sala 1, parte, Centro, registered with the CNPJ/MF under no. 00.108.786/0013-07;
 

	Branch: NET RIO GRANDE, a company established in the town of Rio Grande, State of  Rio Grande do Sul, at Rua General Neto no 570, Centro, registered with the CNPJ/MF under no. 00.108.786/0080-69;
 

	Branch: NET SALVADOR, a company established in the city of Salvador, State of Bahia, at Avenida Paulo VI, no 1.819, Bairro Pituba, LT-Parque Nossa Sra., CEP.: 41810-000,  registered with the CNPJ/MF under no. 00.108.786/0162-40;

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET SANTA CRUZ DO SUL, a company established in the town of Santa Cruz do Sul, State of  Rio Grande do Sul, Rua Marechal Deodoro n.o 110, registered with the CNPJ/MF under no. 00.108.786/0052-05;
 

	Branch: NET SANTA MARIA, a company established in the town of Santa Maria, State of  Rio Grande do Sul, at Rua Visconde de Pelotas no 2122, parte, registered with the CNPJ/MF under no. 00.108.786/0074-10;
 

	Branch: NET SANTA BÁRBARA D ́OESTE, a company established in the town of Santa Bárbara d ́Oeste, State of São Paulo, at Avenida Santa Bárbara n.o 777, loja 18, parte, registered with the CNPJ/MF under no. 00.108.786/0063-68;
 

	Branch: NET SANTA BRANCA, a company established in the town of Santa Branca, State of São Paulo, at Rua Independência n.o 152, registered with the CNPJ/MF under no. 00.108.786/0011-37;
 

	Branch: NET SANTO ANDRÉ, a company established in the city of Santo André, State of São Paulo, at Rua Gonçalo Fernandes n.o 200, parte, registered with the CNPJ/MF under no. 00.108.786/0071-78;
 

	Branch: NET SÃO BERNARDO DO CAMPO, a company established in the city of São Bernardo do Campo, State of São Paulo, at Rua Nilo Peçanha n.o 30, sala 1, registered with the CNPJ/MF under no. 00.108.786/0015-60;
 

	Branch: NET SÃO CAETANO DO SUL, a company established in the city of São Caetano do Sul, State of São Paulo, at Rua Francesco Coppini n.o 157, sala 1, parte, registered with the CNPJ/MF under no. 00.108.786/0029-66;
 

	Branch: NET SÃO CARLOS, a company established in the town of São Carlos, State of São Paulo, at Rua Major José Inácio n.o 2500, parte, registered with the CNPJ/MF under no. 00.108.786/0093-83;
 

	Branch: NET SÃO JOSÉ DOS CAMPOS, a company established in the town of São José dos Campos, State of São Paulo, at Avenida São Joao n.o 1046, parte, registered with the CNPJ/MF under no. 00.108.786/0027-02;
 

	Branch: NET SÃO JOSÉ DO RIO PRETO, a company established in the town of São José do Rio Preto, State of São Paulo, at Rua Lafaiete Spínola de Castro n.o 1.922, registered with the CNPJ/MF under no. 00.108.786/0095-45;
 

	Branch: NET SÃO VICENTE, a company established in the town of São Vicente, State of São Paulo, at Rua Onze de Junho n.o 96, Terceiro Piso, registered with the CNPJ/MF under no. 00.108.786/0100-47;
 

	Branch: NET SERTÃOZINHO, a company established in the town of Sertãozinho, State of São Paulo, at Rua Antônio Malaquias Pedroso n.o 1433, parte, registered with the CNPJ/MF under no. 00.108.786/0131-43;
 

	Branch: NET SOROCABA., a company headquartered in the town of Sorocaba, State of São Paulo, at Avenida Antônio Carlos Comitre n.o 1.074, esquina com a Rua Pedro Molina n.o 81, registered with the CNPJ/MF under no. 00.108.786/0087-35; 

 

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THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

	Branch: NET SUMARÉ, a company established in the town of Sumaré, State of São Paulo, at Rua João Francisco Ramos n.o 518, térreo, sala 2, registered with the CNPJ/MF under no. 00.108.786/0115-23;
 

	Branch: NET TAUBATÉ, a company established in the town of Taubaté, State of São Paulo, at Avenida Professor Walter Thaumaturgo n.o 640, loja 3, parte, registered with the CNPJ/MF under no. 00.108.786/0086-54;
 

	Branch: NET URUGUAIANA, a company established in the town of Uruguaiana, State of  Rio Grande do Sul, at Rua Domingos de Almeida no 1727, parte, registered with the CNPJ/MF under no. 00.108.786/0079-25;
 

	Branch: NET VALINHOS, a company established in the town of Valinhos, State of São Paulo, at Rua Lourenço Ferrari n.o 387, parte, registered with the CNPJ/MF under no. 00.108.786/0121-71;
 

	Branch: NET VILA VELHA, a company headquartered in the town of Vila Velha, State of  Espírito Santo, na Rodovia do Sol s/n, lote 21, quadra 37, Praia de Itaparica, registered with the CNPJ/MF under no. 00.108.786/0170-50
 

	Branch: NET VITÓRIA, a company headquartered in the city of Vitória, State of Espírito Santo, na Av. Desembargador Santos Neves n.° 741, Praia do Canto, registered with the CNPJ/MF under no. 00.108.786/0145-49.
 

 

NET SÃO PAULO LTDA., a company headquartered in the city of São Paulo, State of São Paulo, at Rua Verbo Divino n.o 1356, térreo, blocos 1 e 2, Chácara Santo Antônio, registered with the CNPJ/MF under no. 65.697.161/0001-21 e Branch::

 

	Branch: NET SANTOS, a company established in the city of Santos, State of São Paulo, at Rua Marechal Pêgo Junior n.o 109, Vila Nova, registered with the CNPJ/MF under no. 65.697.161/0019-50;
 

JACAREÍ CABO S.A., a company headquartered in the town of Jacareí, State of São Paulo, Rua Antonio Afonso, n.o 454, quadra, lote 23, registered with the CNPJ/MF under no. 04.365.781/0001-79;

 

NET BRASÍLIA LTDA., a company headquartered in Brasília, Distrito Federal, na SIG/Sul Quadra 01 n.o 725, registered with the CNPJ/MF under no. 26.499.392/0001-79;

 

NET RIO LTDA., a company headquartered in the city of Rio de Janeiro, State of  Rio de Janeiro, at Rua Voluntários da Pátria no 113, andares 2, 3, 4 e 5, Botafogo, Rio de Janeiro/RJ, CEP 22.270-000, registered with the CNPJ/MF under no. 28.029.775/0001-09; 

 

Branch: NET NITERÓI, a company established in the town of Niterói, State of  Rio de Janeiro, na Alameda São Boaventura n.o 1066, sobreloja 201, bairro Fonseca, registered with the CNPJ/MF under no. 28.029.775/0019-38.

 

18 

 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

EXHIBIT II – MONTHLY TRAFFIC PER LOCALITY

Telecommunication Service Agreement

 

	

    
	

   LOCALITY
	

   STATE
	

   INSTALLED CAPACITY

	

   CNL
	

   LOCALIDADE
	

   UF
	

   CAPACIDADE
INSTALADA
(Mbps)

	

   AMR
	

   Americana
	

   SP
	

   [***]

	

   ANS
	

   Anápolis
	

   GO
	

   [***]

	

   APS
	

   Arapongas
	

   PR
	

   [***]

	

   ARC
	

   Araçatuba
	

   SP
	

   [***]

	

   ARQ
	

   Araraquara
	

   SP
	

   [***]

	

   BGE
	

   Bagé
	

   RS
	

   [***]

	

   BGP
	

   Bragança Paulista
	

   SP
	

   [***]

	

   BGV
	

   Bento Gonçohes
	

   RS
	

   [***]

	

   BHE
	

   Belo Horizonte
	

   MG
	

   [***]

	

   BNU
	

   Blumenau
	

   SC
	

   [***]

	

   BRU
	

   Bauru
	

   SP
	

   [***]

	

   BSA
	

   Brasilia
	

   DF
	

   [***]

	

   BTU
	

   Botucatu
	

   SP
	

   [***]

	

   CAS
	

   Campinas
	

   SP
	

   [***]

	

   CCO
	

   Chapeo6
	

   SC
	

   [***]

	

   CNE
	

   Cianarte
	

   PR
	

   [***]

	

   CPE
	

   Campo Grande
	

   MS
	

   [***]

	

   CSC
	

   Cascaual
	

   PR
	

   [***]

	

   CSL
	

   Caxias do Sul
	

   RS
	

   [***]

	

   CTA
	

   Curitiba
	

   PR
	

   [***]

	

   CUA
	

   Criciuma
	

   SC
	

   [***]

	

   CZA
	

   Cruz Alta
	

   RS
	

   [***]

	

   ERE
	

   Erechim
	

   RS
	

   [***]

	

   FAC
	

   Franca
	

   SP
	

   [***]

	

   FNS
	

   Floriandpólis
	

   SC
	

   [***]

	

   FRL
	

   Farroupilha
	

   RS
	

   [***]

	

   GJA
	

   Guarujá
	

   SP
	

   [***]

	

   GNA
	

   Goiânia
	

   GO
	

   [***]

	

   GRP
	

   Guarapuama
	

   PR
	

   [***]

	

   GRS
	

   Guarulhos
	

   SP
	

   [***]

	

   IDU
	

   Inclaiatuta
	

   SP
	

   [***]

	

   EGA
	

   Itapetininga
	

   SP
	

   [***]

	

   FM
	

   Itu
	

   SP
	

   [***]

	

   JAI
	

   Jundial
	

   SP
	

   [***]

	

   JAU
	

   Jaú
	

   SP
	

   [***]

	

   JPA
	

   João Pessoa
	

   PB
	

   [***]

	

   JVE
	

   Joirnille
	

   SC
	

   [***]

 

19 

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT A CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT AND THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION: [***].

 

EXHIBIT II – MONTHLY TRAFFIC PER LOCALITY

Telecommunication Service Agreement

 

	

    
	

   LOCALITY
	

   STATE
	

   INSTALLED CAPACITY

	

   CNL
	

   LOCALIDADE
	

   UF
	

   CAPACIDADE
INSTALADA
(Mbps)
400

	

   KDK
	

   Capão da Canoa
	

   RS
	

   [***]

	

   LDA
	

   Londrina
	

   PR
	

   [***]

	

   LJO
	

   Lajeado
	

   RS
	

   [***]

	

   MCO
	

   Maceió
	

   AL
	

   [***]

	

   MCZ
	

   Mogi das Cruzes
	

   SP
	

   [***]

	

   MGA
	

   Maringá
	

   PR
	

   [***]

	

   MIA
	

   Manila
	

   SP
	

   [***]

	

   MNS
	

   Manaus
	

   AM
	

   [***]

	

   NHO
	

   Nova Hamburgo
	

   RS
	

   [***]

	

   NRI
	

   Niterói
	

   RJ
	

   [***]

	

   PAA
	

   Piracicaba
	

   SP
	

   [***]

	

   PAE
	

   Porto Alegre
	

   RS
	

   [***]

	

   PAS
	

   Passo Fundo
	

   RS
	

   [***]

	

   PBA
	

   Pindamonhangaba
	

   SP
	

   [***]

	

   PGO
	

   Ponta Grossa
	

   PR
	

   [***]

	

   PLT
	

   Pelotas
	

   RS
	

   [***]

	

   RCE
	

   Recife
	

   PE
	

   [***]

	

   RGR
	

   Rio Grande
	

   RS
	

   [***]

	

   RJO
	

   Rio de Janeiro
	

   RJ
	

   [***]

	

   RPO
	

   Ribeirão Preto
	

   SP
	

   [***]

	

   RSD
	

   Resende
	

   RJ
	

   [***]

	

   SCL
	

   São Carlos
	

   SP
	

   [***]

	

   SCR
	

   Santa Cruz do Sul
	

   RS
	

   [***]

	

   SDR
	

   Salvador
	

   BA
	

   [***]

	

   SEA
	

   Serra
	

   ES
	

   [***]

	

   SJC
	

   São José dos Campos
	

   SP
	

   [***]

	

   SMA
	

   Santa Maria
	

   RS
	

   [***]

	

   SNE
	

   Santo André
	

   SP
	

   [***]

	

   SOC
	

   Sorocaba
	

   SP
	

   [***]

	

   SPO
	

   Sao Paulo
	

   SP
	

   [***]

	

   SRR
	

   São José do Rio Preto
	

   SP
	

   [***]

	

   STS
	

   Santos
	

   SP
	

   [***]

	

   STZ
	

   Sertãozinho
	

   SP
	

   [***]

	

   SVE
	

   São Vicente
	

   SP
	

   [***]

	

   TTE
	

   Taubaté
	

   SP
	

   [***]

	

   UGN
	

   Uruguaiana
	

   RS
	

   [***]

	

   VOS
	

   Valinhos
	

   SP
	

   [***]

 

 

20 

 

 

 

EXHIBIT III – OPERATIONAL FLOW DIAGRAM

Telecommunication Service Agreement

 

 

 

 

 

 

 

21 

 

 

 

	

   
   

 

22 

 

 

 

 

 

EXHIBIT IV – DEMAND FORECAST

                                     Telecommunication Service Agreement

 

	

    
	

   Locality
	

   State
	

   Demand Forecast

	

    
	

    
	

    
	

   Previsão de Demanda

	

   CNL
	

   Localidade
	

   UF
	

   dez-12
	

   dez-13
	

   dez-14

	

   AMR
	

   Americana
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   ANS
	

   Anápolis
	

   GO
	

   [***]
	

   [***]
	

   [***]

	

   ARC
	

   Araçatuba
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   APS
	

   Arapongas
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   ARQ
	

   Araraquara
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   BGE
	

   Bagé
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   BRU
	

   Bauru
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   BHE
	

   Belo Horizonte
	

   MG
	

   [***]
	

   [***]
	

   [***]

	

   BGV
	

   Bento GonçaIves
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   BNU
	

   Blumenau
	

   SC
	

   [***]
	

   [***]
	

   [***]

	

   BTU
	

   Botucatu
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   BGP
	

   Bragança Paulista
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   BSA
	

   Brasilia
	

   DF
	

   [***]
	

   [***]
	

   [***]

	

   CAS
	

   Campinas
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   CPE
	

   Campo Grande
	

   MS
	

   [***]
	

   [***]
	

   [***]

	

   KDK
	

   Capão da Canoa
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   CSC
	

   Cascavel
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   CSL
	

   Caxias do Sul
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   CCO
	

   Chapecó
	

   SC
	

   [***]
	

   [***]
	

   [***]

	

   CNE
	

   Cianorte
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   CUA
	

   Criciuma
	

   SC
	

   [***]
	

   [***]
	

   [***]

	

   CZA
	

   Cruz Alta
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   CTA
	

   Curitiba
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   ERE
	

   Erechim
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   FRL
	

   Farroupilha
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   FNS
	

   Florianópolis
	

   SC
	

   [***]
	

   [***]
	

   [***]

	

   FAC
	

   Franca
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   GNA
	

   Goiânia
	

   GO
	

   [***]
	

   [***]
	

   [***]

	

   GRP
	

   Guarapuava
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   WA
	

   Guarujá
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   MS
	

   Guaruihos
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   IDU
	

   Indaiatuba
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   IGA
	

   ltapetininga
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   ITU
	

   itu
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   JAU
	

   Jaú
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   JPA
	

   João Pessoa
	

   PB
	

   [***]
	

   [***]
	

   [***]

	

   JVE
	

   Joinville
	

   SC
	

   [***]
	

   [***]
	

   [***]

	

   JAI
	

   Jundiai
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   U0
	

   Lajeado
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   LDA
	

   Londrina
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   MCO
	

   Maceió
	

   AL
	

   [***]
	

   [***]
	

   [***]

	

   MNS
	

   Manaus
	

   AM
	

   [***]
	

   [***]
	

   [***]

	

   MIA
	

   Manilla
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   MGA
	

   Maringá
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   MCZ
	

   Mogi das Cruzes
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   NRI
	

   Niterói
	

   RJ
	

   [***]
	

   [***]
	

   [***]

	

   NI-10
	

   Novo Hamburgo
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   PAS
	

   Passo Fundo
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   PLT
	

   Pelotas
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   PBA
	

   Pindamonhangaba
	

   SP
	

   [***]
	

   [***]
	

   [***]

 

23 

 

 

	

    
	

   Locality
	

   State
	

   Demand Forecast

	

    
	

    
	

    
	

   Previsão de Demanda

	

   CNL
	

   Localidade
	

   UF
	

   dez-12
	

   dez-13
	

   dez-14

	

   PAA
	

   Piracicaba
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   PGO
	

   Ponta Grossa
	

   PR
	

   [***]
	

   [***]
	

   [***]

	

   PAE
	

   Porto Alegre
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   RCE
	

   Recife
	

   PE
	

   [***]
	

   [***]
	

   [***]

	

   RSD
	

   Resende
	

   RJ
	

   [***]
	

   [***]
	

   [***]

	

   RPO
	

   Ribeirão Preto
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   RJO
	

   Rio de Janeiro
	

   RJ
	

   [***]
	

   [***]
	

   [***]

	

   RGR
	

   Rio Grande
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   SDR
	

   Salvador
	

   BA
	

   [***]
	

   [***]
	

   [***]

	

   SCR
	

   Santa Cruz do Sul
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   SMA
	

   Santa Maria
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   SNE
	

   Santo André
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   STS
	

   Santos
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SCL
	

   São Carlos
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SRR
	

   São José do Rio Preto
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SJC
	

   São José dos Campos
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SPO
	

   São Paulo
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SVE
	

   São Vicente
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   STZ
	

   Sertãozinho
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SOC
	

   Sorocaba
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   TTE
	

   Taubaté
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   UGN
	

   Uruguaiana
	

   RS
	

   [***]
	

   [***]
	

   [***]

	

   VOS
	

   Valinhos
	

   SP
	

   [***]
	

   [***]
	

   [***]

	

   SEA
	

   Vitória 
	

   ES
	

   [***]
	

   [***]
	

   [***]

	

    
	

   CONSUMO NET
	

    
	

   [***]
	

   [***]
	

   [***]

 

 

* valores em Gbps

 * Amounts in Gbps 

EXHIBIT V – SLA

 

24 

 

 

 

Telecommunication Service Agreement

 

 

 

EMBRATEL will adopt as a quality standard the performance levels guaranteed by the IP Network (Internet) via EMBRATEL as shown in the table below:

 

	

   PARAMETER
	

   DEFINITION
	

   OBJECTIVE

	

   Latency
(miliseconds)
	

   Average traffic time (in ms, - roundtrip) of 64-byte packet between two routing centers, inside the Internet Network EMBRATEL
	

   75 (maximum)

	

   Packet loss
(%)
	

   Index that measures the average success rate in the transmission of IP packets between two network points
	

   1 (maximum)

	

   Availability
(%)
	

   Backbone availability (minimum value)
	

   99,90 (minimum)

	

   Availability
(%)
	

   Percentage of average time in which the Internet Network EMBRATEL is operating, in a 30-day period corresponding to Service subscription
	

   99,85 (minimum)

	

   Scheduled Maintenance
	

   Previous communication time to perform scheduled maintenance inside the EMBRATEL Network
	

   15 dias

	

   Emergency Maintenance
	

   Previous communication time to perform emergency maintenance inside the EMBRATEL Network
	

   8 horas

 

The parties agree that if  EMBRATEL fails to reach the rates that reflect the quality parameters agreed with NET, during a period equal to or longer than 3 (three) consecutive months, NET may cancel the circuit(s) whose rate(s) has(have) not been reached, by sending a notice to EMBRATEL, without having to pay any penalty for such a cancellation. It is hereby agreed that this item shall take precedence over the provision under item 10 TERMINATION, in case of breach hereof by EMBRATEL with regard to the quality parameters set herein. 

 

EMBRATEL undertakes to service in up to 4 hours, 90% of the occurrences under its responsibility, save faults caused by any Access and Equipment of NET.

 

 

 

 

 

 

25

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