Document:

Exhibit 4.2

 

 

 

Facility Agreement

 

FACILITY AGREEMENT Reference number 8R-41700-MLA-284 FA3
to Master Loan Agreement Reference No. TIMLALT (the “Master”) dated 6/20/2013, is entered into as of the date
October 27th 2015 (the “Effective Date”)

 

BETWEEN

 

		(1)	CISCO SYSTEMS CAPITAL CORPORATION, a Nevada corporation,
having its registered Office at 170 West Tasman Drive, San Jose, CA 95134-1706, United States of America (“Lender”);
and

 

		(2)	TIM CELULAR S/A, a limited liability company organized
and existing under the laws of the Federative Republic of Brazil, having its address and principal place of business at Avenida
Giovanni Gronchi 7143, Vila Andrade, SP 05724-006, Brazil, with Commercial license number (Tax Payer Register) CNP) 04.206.050/0001-800
(“Borrower”).

 

OPERATIONAL

 

		(A)	This agreement constitutes a facility agreement under
the Master (the “Facility Agreement”).

 

		(B)	The Lender agrees to grant to the Borrower the Facility
described below to finance IT Solutions; and

 

		(C)	Capitalized terms or expressions not defined herein have
the same meanings set out in the Master.

 

FACILITY DETAILS

 

	Availability Period End Date	:	June 27”‘, 2016
	 	 	 
	Term	:	The term of each Loan should be 60 Months with Semi Annual Payments in Arrears
	 	 	 
	Rate of Interest	:	The term for a specific drawdown agreed between the Borrower and the Lender In the relevant Request for Borrowing.
	 	 	 
	Default Rate	:	3.8 % (Three point Eight percent) per year
	 	 	 
	Facility Limit	:	$50,000,000.00 (Fifty Million and 00/100 United States Dollars)
	 	 	 
	Third Party Limit	:	40% (forty percent)
	 	 	 
	Minimum Drawdown Amount	:	$300,000.00 (Three Hundred Thousand and 00/100 United States Dollars)
	 	 	 
	Maximum Drawdown Number	:	$50,000,000.00 (Fifty Million and 00/100 United States Dollars)
	 	 	 
	Services Agreement	:	Not applicable
	 	 	 
	Legal name and address of Security	 	 
	Provider	:	Not applicable

 

1.Representations and Warranties

 

The Borrower acknowledges that the Lender has entered into this
Facility Agreement In reliance upon the representations and warranties set out in Clause 6 of the Master and represents and warrants
to the Lender on the date of this Facility Agreement as set out in Clause 6 of the Master.

 

In addition to the Clause 6 of the Master, the Borrower hereby
confirms that the Bacen has approved the financial conditions of the Facility Agreement and attaches hereto a printout of the ROF
approval of the Bacen.

 

2.Additional Conditions Precedents

 

The Lender shall receive following documents and evidence, satisfactory
to the Lender in form and substance:

 

1.a copy of the ROF

 

3.Condition Subsequent

 

Within thirty (30) days after the disbursement of a Loan hereunder,
the Borrower shall present to the Lender a printout of the Schedule of Payments related to the Loan issued by the Central Bank
of Brazil, which must be in accordance with the terms and conditions agreed upon by the Parties.

 

4.Additional Provisions

 

Section 3.6 (Application of each Loan) of the Master are hereby
replaced in Its entirety to the following:

 

3.6 Application of each Loan. The entire principal amount of
the Loan shall be paid by the Borrower to the Authorized Supplier indicated by the Borrower to the Lender in Connection with the
Equipment described in the Invoices and/or Supplier Certificate attached to the Request for Borrowing. Within 90 (Ninety) days
after the Lender has disbursed the Loan, the Lender may contact directly the Authorized Supplier in order to obtain the evidence
(proof of payment) that all the Invoices have been properly received by the Authorized Supplier. In case the Lender does not receive
any positive response from the Authorized Supplier in a reasonable time, Lender shall keep the right to request the proof of payment
of the 50 (Fifty) largest Invoices, selected by the Lender, that have been properly received by the Authorized Supplier directly
from the Borrower, who remains the ultimate responsible for providing such evidence.

 

Section 10.1. (Withholdings and deductions for Tax) of the Master
are hereby amended to include the following paragraph:

 

 

 

    

    

    

 

10.1.1: “Notwithstanding the above, the Borrower shall
not be required to increase payments for the withholding tax on Interest if the Borrower presents an original or certified copy
of a receipt evidencing payment thereof within thirty (30) days of payment of such withholding tax.”,

 

 

THE PARTIES CONFIRM THAT THEY HAVE READ THIS FACILITY AGREEMENT
AND THE MASTER AND AGREE TO BE BOUND BY THEM.

EXECUTED BY THE PARTIES AND THE 2 (TWO) WITNESSES SIGNED HEREUNDER WITH ALL SIGNATURES DULY NOTARIZED ON THE DATE SET OUT BELOW

 

	
        CISCO SYSTEMS CAPITAL CORPORATION

        

        
	
        TIM CELULAR S/A

        

        

        

	(authorized signatory and company stamp)	(authorized signatory and company stamp)
	Date:11/18/2015	Date: 
	By:/s/ Deborah Baker	By:     /s/ Paolo Barroeri
	Name:Deborah Baker	Name:Paolo Barroeri
	Title: Senior Director	Title:   TIM Celular S.A.

          Finanças e Tesouraria
		 
	Witnessed by:	 
	1.

Name:

ID:	2.       /s/ Glaucia Crahim

Name:Glaucia Crahim

          TIM Celular S/A

          Finanças e Tesouraria
	 	ID:

 

 

    

    

    

 

ACKNOWLEDGEMENT

 

State of Nevada

 

County of Washoe

 

This instrument was acknowledged before me on November 18, 2015
by Deborah Baker as Senior Director, AMS Operations of Cisco Systems Capital Corporation.

 

 

Notary Public

 

 

This acknowledgement is attached to a mark registration dated
November 18, 2015

 

    

    

    

 

Request
for Borrowing

 

Request for
Borrowing - US-207-0001

 

CiSCO Systems Capital Corporation

 

9850 Double R Blvd.

Reno, NV 89521

Attn: Loan Operations

Fax: +1-775-789-5799

 

October 27th,
2015

 

Ladies and Gentlemen:

 

Request for Borrowing for Facility
Reference number BR-41700-MLA-284_FA3 in the amount of USD$50,000,000.00

 

We refer to the Facility Agreement
Reference Number BR-41700-MLA-284_FA3 dated October 27th, 2015 between the Borrower and Cisco Systems Capital Corporation
(the “Lender”). Terms used in this Request for Borrowing have the same meaning as the Facility Agreement.

 

We hereby request a Loan upon the
terms of the Master as follows:

 

		1.	The Drawdown Date is December
                                         10th, 2015.

 

		2.	The amount of the Loan is US$
                                         50,000,000.00

 

		3.	The applicable Interest rate is 2.5%

 

		4.	The Term of each Loan shall be 60
                                         months commencing on the Drawdown Date of that Loan with Semiannual payments in Arrears.

 

		5.	The proceeds of the Loan are to be
                                         paid directly to TIM CELULAR S/A in settlement of the Invoices described in the
                                         spreadsheet specifying the total amount of those Invoices and showing the ratio (by invoice
                                         value) of Third Party or Third Party Services to all Products or Services, attached hereto
                                         as Scheduled D.

 

		6.	Borrower’s Bank Information
                                         (Payee Bank Information)

 

	Bank A/C Number:	11116605
	Bank Name:	Banco JP Morgan
	Routing Number:	 
	ABA No.	Swift No. CHASBRSP
	Address: Av. Brig. Faria Lima 3729	City: São Paulo
	Zip Code:04538-905	Country: Brazil

  

		6.1.	Borrower’s intermediate
Bank Information (if any)

 

	Bank A/C Number:	 
	Bank Name:	JP Morgan Chase Bank NA
	Routing Number	 
	ABA No.	Swift No. CHASUS33
	Address:	City: New York
	Zip Code:	Country: USA

 

		7.	The Borrower was authorized not to
                                         increase payments for the withholding tax on Interest at 15% and it must present an original
                                         or certified copy of a receipt (DARF) evidencing payment thereof within thirty (30) days
                                         of such payment.

 

		8.	According to clause 3.3 (b) of the
                                         Master, the Request for Borrowing shall be received by the Lender at least fifteen (15)
                                         Business Days prior to the Drawdown Date set forth in item 1) above.

 

		9.	Payment Dates and Repayments are
                                         as described on Appendix A attached hereto.

 

The Borrower represents and warrants
to the Lender on the date of this Request for Borrowing as set out in Clause 6 of the Master. A spreadsheet specifying the total
amount of those Invoices and showing the ratio (by invoice value) of Third Party or Third Party Services to all Products or Services
is enclosed hereto as Schedule D.

 

Sincerely,

 

Authorized Signatory  

 

TIM CELULAR S/A  

 

    

    

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

    

 

Enclosures

 

Appendix A: Repayment Schedule

 

Schedule D: Third Party Product
and/or Service Spread Sheet

 

Accepted and agreed:

 

 

Cisco Systems Capital Corporation

 

Date: 11/18/2015

 

 

 

 

 

    

    

    

 

ACKNOWLEDGEMENT

 

State of Nevada

 

County of Washoe

 

This instrument was acknowledged before me on November 18, 2015
by Deborah Baker as Senior Director, AMS Operations of Cisco Systems Capital Corporation.

 

 

Notary Public

 

 

 

This acknowledgement is attached to a mark registration dated
November 18, 2015Exhibit 4.3

 

English Language Summary

 

Credit Agreement – Contrato de Financiamento Mediante
Abertura de Crédito N° 15.2.0825.1, dated as of December 29, 2015, between BNDES, the Brazilian Development Bank (Banco
Nacional de Desenvolvimento Econômico e Social), as lender, TIM Celular S.A., as borrower, and TIM Participações
S.A. as guarantor.

 

On December 29, 2015, TIM Celular S.A.,
or TIM Celular, entered into a credit agreement, or the Credit Agreement, with an aggregate principal amount of R$63.935 million
with the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social), or BNDES. TIM Participações
S.A., or TIM, is guarantor under the Credit Agreement, jointly and severally liable for TIM Celular’s obligations.

 

The principal
amount is split into two credit lines, each with different interest rates: (1) Credit Line
A, in an amount of R$60.995 million, at a fixed interest rate of 7.0% per year. In case of an event caused by TIM Celular which
gives rise to the loss of the equalization right provided under Article 1 of Law No. 12,096 of November 24, 2009, interest shall
accrue, starting from the date of such event, at the rate of TJLP plus 1.5% per year, unless such rate is less than the aforementioned
fixed rate, in which case the fixed rate shall continue to apply. Interest is payable on Credit Line A on the 15th day
of every three months from the date of the contract through January 15, 2019, and on the 15th day of every month from
February 15, 2019 through the repayment date. (2) Credit Line B, in an amount of R$2.940 million, adjusted for TJLP, at an interest
rate of TJLP plus 0.52% (which may be further adjusted depending on the TJLP rate at any given time). Interest on Credit Line B
is either capitalized, or payable on the 15th day of every three months from the date of the contract through January
15, 2019 and on the 15th day of every month from February 15, 2019 through the repayment date, depending on the TJLP
rate at any given time as set forth in more detail in the Credit Agreement. The principal amount is to be repaid in sixty installments,
with the first installment due on February 15, 2019 and the final installment due on January 15, 2024.

 

Certain customary conditions precedent
as set forth in the Credit Agreement must be met for the funds to be released. One such condition precedent is payment by TIM Celular
to BNDES of a Financial Collaboration Fee (Comissão por Colaboração Financeira) equal to 0.3%
over the value of the Credit Agreement; in the event there is no release of funds, the Financial Collaboration Fee shall be due
within 45 days of BNDES demand.

 

Credit Line A has an non-extendable availability
period of 24 months; and Credit Line B has an availability period of 36 months without prejudice to BNDES extending such period.

 

Each Credit Line must be used for certain
purposes as set forth in the Credit Agreement. Credit Line A must be used for investing in research and development within the
scope of the BNDES Investment Support Program – Efficient Machine and Equipment Innovation Subprogram. Credit Line B must
be used for investing in research and development within the scope of the BNDES Innovation Program.

 

The Credit Agreement contains typical
affirmative and negative covenants, including certain financial covenants and adherence to the general rules applicable to any
BNDES loan. Additionally, TIM Celular must notify BNDES, within 30 days of obtaining knowledge, if it or any of its controlling
companies, administrators, employees, agents, representatives, suppliers, contractors or subcontractors are involved in an investigation
suit, judicial or administrative proceeding relating to harmful acts, infractions or crimes against the economic or fiscal order,
laundering or concealment of goods, rights or interests, or against the National Financial System (Sistema Financeiro Nacional),
capital markets or public administration, including, without limitation, any acts which could violate certain Brazilian laws enumerated
therein. TIM Celular must also notify BNDES of any individual remunerated by TIM Celular or owner, controller or director
of TIM Celular which acts as a federal deputy (Deputado(a) Federal) or senator (Senador(a)). TIM undertakes not to
permit a change of control in TIM Celular without prior BNDES consent, and TIM is required to continue exercising control, as defined
under Brazilian law, over TIM Celular.

 

TIM Celular pledges as collateral to BNDES
a security interest over all of their revenues, commencing from the date of the Credit Agreement until the satisfaction in full
of all obligations under the Credit Agreement.

 

Any of the following would constitute
an event of default during the term of the Credit Agreement, for which BNDES may require acceleration of the maturity date and
repayment:

 

     

     

    

1. Certain negative covenants and other obligations set forth
in the Credit Agreement or general rules applicable to any BNDES loan are not complied with; or

 

2. There is a final, non-appealable judgment that TIM Celular
uses slave or child labor or has committed crimes against the environment, except where TIM Celular is effectuating reparations
or complying with penalties imposed under such legal process; or

 

3. Inclusion in the bylaws or other organizational documents
of TIM Celular or any company that controls it any conditions which would restrict or prejudice the ability to repay financial
obligations arising under the Credit Agreement; or

 

4. TIM Celular uses the funds for purposes other than those
as set forth in the Credit Agreement; or

 

5. On the inauguration date of any individual remunerated by
TIM Celular or owner, controller or director of TIM Celular as a federal deputy (Deputado(a) Federal) or senator (Senador(a)).

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