Document:

Exhibit 10.6

 

BNDES

 

REGISTRATION 1151290

 

CREDIT FACILITY FINANCING AGREEMENT NO. 13.2.0488.1 ENTERED INTO BY AND BETWEEN THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BNDES) AND INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S/A, WITH INTERVENING THIRD PARTIES, AS PROVIDED BELOW:

 

The NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL - BNDES), herein referred to simply as the BNDES, a federal publicly-held company, with its principal place of business in Brasília, Federal District, and services in this City, at Avenida República do Chile No. 100, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 33.657.248/0001-89, by its undersigned representatives;

 

and

 

INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S/A, hereinafter referred to as the BENEFICIARY, a joint-stock company with its principal place of business at Avenida Doutor Romeu Tortima, No. 413, Jardim Santa Genebra, in the City of Campinas, State of São Paulo, Postal Code (CEP) No. 13.084-791, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 04.582.447/0001-77, by its undersigned representatives; and also, as INTERVENING PARTIES:

 

I — LEONARDO WASCHECK, Brazilian, married to Alessandra Aparecida Banstarch under the separation property regime, systems analyst, resident and domiciled at Rua Dalva Maria Fernandes Pinheiro, No. 35, Residencial Barão do Café, Campinas, São Paulo, holder of Identity Card No. 16.257.660-2 SSP-SP and enrolled with the Individual Taxpayers Register of the Ministry of Finance (CPF/MF) under No. 173.869.378-30;

 

II — RODRIGO WASCHECK, Brazilian, married to Maria Cristina Martins Butignoli under the partial community property regime, civil engineer, resident and domiciled at Rua Luiza de Mello Bueno, No. 456, Parque das Universidades, Campinas, São Paulo, holder of Identity Card No. 14.483.512-5 SSP-SP and enrolled with the CPF/MF under No. 069.842.268-64;

 

III — MARIA CRISTINA MARINS BUTIGNOLI WASCHECK, Brazilian, married to Rodrigo Wascheck under the partial community property regime, Public Relations graduate, resident and domiciled at Rua Luiza de Mello Bueno, No. 456, Parque das Universidades, Campinas, São Paulo, holder of Identity Card No. 18.960.937-5 SSP-SP and enrolled with the CPF/MF under No. 191.490.978-06;

 

IV — PAULO HENRIQUE PALÁCIOS, Brazilian, living in a steady union without formal agreement with Luciane Nalin de Souza, businessman, resident and domiciled at Rua São Salvador, No. 225, apt. 91, Jardim Belo Horizonte, Campinas, São Paulo, Postal Code 13076-540, holder of Identity Card No. 16.626.947-5 SSP-SP and enrolled with the CPF/MF under No. 150375068-08; and

 

V — LUCIANE NALIN DE SOUZA, Brazilian, living in a steady union without formal agreement with Paulo Henrique Palácios, systems analyst, resident and domiciled at Rua São Salvador, No. 225, apt. 91, Jardim Belo Horizonte, Campinas, São Paulo, Postal Code 13076-540, holder of Identity Card No. 19.415.829-9 SSP-SP and enrolled with the CPF/MF under No. 169.977.978-30; have mutually agreed as follows:

 

ONE

NATURE, AMOUNT, AND PURPOSE OF THE AGREEMENT

 

By this Agreement, the BNDES grants to the BENEFICIARY a credit in the amount of two million, seven hundred and nine thousand, two hundred and fifty-one Reais (R$2,709,251.00) out of its ordinary funds, which consist, among other sources, of funds from the Worker Support Fund (FAT) and funds originating from the FAT — Special Deposits and from the Social Integration Program/Civil Servant Asset Formation Program (PIS/PASEP) Equity Fund, subject, as to their allocation, to the laws applicable to each such source, in accordance with the provisions of Section Two, Paragraph

 

 

Two, designed for investments in investment plan of the BENEFICIARY, which contemplates infrastructure, training and quality research and development, marketing, and sales actions, within the scope of the BNDES Program for the Development of the Domestic Software and Information Technology Services Industry (BNDES PROSOFT Empresa).

 

TWO

CREDIT AVAILABILITY

 

The credit shall be made available to the BENEFICIARY, in installments, upon satisfaction of the conditions precedent for use referred to in Section Twelve, according to the needs for the execution of the financed project, subject to the BNDES financial schedule, which is subordinated to the definition of funds for its investments by the National Monetary Council.

 

PARAGRAPH ONE

 

At the time of release of the funds under this transaction, the debits determined by law and those contractually authorized by the BENEFICIARY shall be made. The total remaining balance of funds available to the BENEFICIARY shall be immediately transferred to checking account No. 10.547-7 held by the BENEFICIARY with Banco Itaú, branch No. 0670.

 

PARAGRAPH TWO

 

The amount of each credit installment to be made available to the BENEFICIARY shall be calculated in accordance with the criteria set forth in the law establishing the Long-Term Interest Rate (TJLP) for determination of debit balances of financings contracted in the BNDES System until November 30, 1994.

 

THREE

INTEREST

 

The principal amount of the debt owed by the BENEFICIARY shall bear interest at a rate of one percent (1.0%) per annum (by way of consideration) above the Long-Term Interest Rate (TJLP) as published by the Central Bank of Brazil, in accordance with the following system:

 

I — When the TJLP is greater than six percent (6%) per annum:

 

a) The amount corresponding to the TJLP portion that exceeds six percent (6%) per annum shall be capitalized on the fifteenth (15th) day of each month of the term of this Agreement and at its maturity or settlement, subject to the provisions of Section Nineteen, and calculated based on the application of the following capitalization term on the debit balance, taking into account all the financial events occurred during the period:

 

TC = [(1 + TJLP)/1.06]n/360 – 1 (capitalization term equal to, opens bracket, ratio between the TJLP plus one and one point zero six, closes bracket, raised to a power corresponding to the ratio between “n” and three hundred and sixty, less one), where:

 

TC — capitalization term;

 

TJLP — Long-Term Interest Rate, as published by the Central Bank of Brazil; and

 

n — number of days between the date of the financial event and the date of capitalization, maturity, or settlement of the obligation, it being understood that financial event shall mean any and all events of a financial nature which result or may result in a change in the debit balance of this Agreement; and

 

b) The percentage of one percent (1.0%) per annum above the TJLP (compensation) referred to in the main provision of this Section plus the non-capitalized portion of TJLP of six percent (6%) per annum shall apply to the debit balance on the interest due dates mentioned in Paragraph Two or on the date of maturity or settlement of this Agreement, subject to the provisions of clause “a,” it being understood that the daily calculation of interest shall take into account the number of days elapsed between the date of each financial event and the abovementioned due dates; and

 

 

II — When the TJLP is equal to or less than six percent (6%) per annum:

 

The percentage of one percent (1.0%) per annum above the TJLP (compensation) referred to in the main provision of this Section plus the TJLP itself shall apply to the debit balance on the interest due dates mentioned in Paragraph Two or on the date of maturity or settlement of this Agreement, it being understood that the daily calculation of interest shall take into account the number of days elapsed between the date of each financial event and the abovementioned due dates.

 

PARAGRAPH ONE

 

The amount referred to in item I, clause “a”, which shall be capitalized and incorporated into the principal amount of the debt, shall be payable in accordance with the provisions of Section Six.

 

PARAGRAPH TWO

 

The amount determined in accordance with the provisions of item I, clause b or item II shall be payable quarterly, on the fifteenth (15th) day of March, June, September and December of each year, during the period between September 15, 2013 and September 15, 2015, and monthly, from and including October 15, 2015, together with the principal amount repayment installments, and at the maturity or settlement of this Agreement, subject to the provisions of Section Nineteen.

 

FOUR

CHARGE FOR CREDIT RESERVE

 

The BENEFICIARY shall pay to BNDES a Charge for Credit Reserve at the rate of one tenth percent (0.1%), chargeable for thirty (30)-day periods or fraction thereof and levied on:

 

I - the credit amount, for a period from July 13, 2013 to the date hereof, the respective payment of which is required for initial use of the credit, of which it shall be deductible because the agreement was entered into after the lapse of the term set forth by the BNDES;

 

II - the unused balance of each installment of the credit, from the date immediately following the date of availability thereof to the date of the use, when the payment thereof shall be enforceable; and

 

III - the unused balance of the credit, from the day immediately following the date of availability thereof to the date of cancellation, made at the request of the BENEFICIARY, or at the initiative of the BNDES, and the payment of which shall be enforceable on the date of the request or of BNDES’ decision, as the case may be.

 

SOLE PARAGRAPH

 

The levy of the charge referred to in aforementioned items II and III shall occur in the event of fixation of a system of availability of funds.

 

FIVE

DEBT PROCESSING AND COLLECTION

 

The collection of principal amount and charges shall be made through a Collection Notice issued in advance by the BNDES for the BENEFICIARY to settle such obligations on their due dates.

 

SOLE PARAGRAPH

 

No failure to receive the Collection Notice shall exempt the BENEFICIARY from its obligation to pay the principal amount installments and charges on the dates set forth in this Agreement.

 

SIX

REPAYMENT

 

The principal amount of the debt arising from this Agreement shall be paid to the BNDES in forty-eight (48) successive monthly installments, each in the principal amount of the debt becoming due, divided by the number of repayment installments not yet due, the first of which shall be due and payable on October fifteen (15), 2015, subject to the provisions of Section Nineteen, and the BENEFICIARY agrees to settle all obligations arising from this Agreement together with the last installment, on September fifteen (15), 2019.

 

 

SEVEN

CHANGE IN THE LEGAL STANDARD FOR COMPENSATION OF FUNDS ORIGINATING FROM THE PIS/PASEP FUND AND/OR FROM THE FAT

 

If the legal standard for compensation of the funds transferred to the BNDES and originating from the PIS/PASEP Equity Fund and/or from the Worker Support Fund (FAT) is replaced, the compensation set forth in Section Three may, at the discretion of the BNDES, use such new standard for compensation of such funds or any other standard indicated by the BNDES which, in addition to preserving the actual amount of the transaction, compensates at the same levels as before. In this case, the BNDES shall give written notice of such change to the BENEFICIARY.

 

EIGHT

SPECIAL OBLIGATIONS OF THE BENEFICIARY

 

The BENEFICIARY agrees to:

 

I — Comply, as applicable, until the final settlement of the debt arising from this Agreement, with the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” approved by Resolution No. 665 of December 10, 1987, as partially amended by Resolution No. 775 of December 16, 1991, by Resolution No. 863 of March 11, 1996, by Resolution No. 878 of September 4, 1996, by Resolution No. 894 of March 6, 1997, by Resolution No. 927 April 1, 1998, by Resolution No. 976 of September 29, 2001, by Resolution No. 1.571 of March 4, 2008, by Resolution No. 1.832 of September 15, 2009, by Resolution No. 2.078 of March 15, 2011, by Resolution No. 2.139 of August 30, 2011, and by Resolution No. 2.181 of November 8, 2011, all issued by the Executive Board the BNDES and published in the Federal Register (Diário Oficial da União) (Section I) on December 29, 1987, December 27, 1991, April 8, 1996, September 24, 1996, March 19, 1997, April 15, 1998, October 31, 2001, March 25, 2008, November 6, 2009, April 4, 2011, September 13, 2011 and November 17, 2011, respectively, a copy of which is hereby delivered to the BENEFICIARY, which, having become aware of all the contents thereof, represents that it accepts it as an integral and inseparable part of this Agreement for all legal purposes and effects;

 

II — To use the total credit amount within twenty-four (24) months from the date of execution of this Agreement, without prejudice to the BNDES’s option, before or after the expiration of such term, under the guarantees set forth in this Agreement, to extend such term upon express authorization by letter, regardless of any other formality or registration;

 

III — In the event of a downsizing of the staff of the BENEFICIARY during the term of this Agreement as a result of the project referred to in Section One, offer a training program focused on job opportunities in the region and/or a worker repositioning program, upon submission to the BNDES for consideration of a document specifying and attesting to the completion of the negotiations held with the relevant trade union or unions involved in the dismissal process;

 

IV — Take, during the term of this Agreement, measures and actions to prevent or correct any damage to the environment and occupational safety and health which may be caused by the project referred to in Section One;

 

V — Maintain its good standing as to its obligations to the environmental agencies during the term of this Agreement;

 

VI — Comply, during the term of this Agreement, with the provisions of law applicable to disabled persons;

 

VII — Give notice to the BNDES, on the date of the event, of the name and Individual Taxpayers Register of the Ministry of Finance (CPF/MF) number of any person who, whether exercising a salaried position or being among its owners, controlling members, or officers, is certified or takes office as a Federal Deputy or Senator;

 

VIII — Formalize the appointment of new guarantors to assume the charge that is the subject matter of Section Thirteen, within up to thirty (30) days as from the death, interdiction or declaration of absence of the Intervening Parties LEONARDO WASCHECK, RODRIGO WASCHECK and PAULO HENRIQUE PALÁCIOS;

 

IX - Submit to the BNDES, during the term of the Agreement, within one hundred and twenty (120) days after the end of each fiscal year, the financial statement covering its individual results and the results of all its subsidiaries, jointly with the respective opinions prepared by an independent audit firm registered with the Brazilian Securities Commission - CVM;

 

 

X — Disclose, on the website of the BENEFICIARY on the Internet and in a prominent place at the headquarters of the company, that it is a financial cooperation beneficiary of the BNDES, according to the model to be provided by the BNDES;

 

XI — Not incorporate, directly or indirectly, companies in Brazil or abroad, or acquire an equity interest in companies, within the Country or abroad, directly or indirectly, without prior express authorization from the BNDES, throughout the term of this Agreement;

 

XII — Submit to the BNDES, within thirty (30) days from the date of correspondence from the BNDES so requiring, throughout the term of this Agreement, copies of the Income Tax Returns of the BENEFICIARY for the fiscal years requested;

 

XIII — Submit, whenever requested by the BNDES, documents of any nature of companies in which it holds any direct or indirect equity interest;

 

XIV — Assign to the BNDES the preemptive right, to be exercised by means of BNDESPAR, on the issue, by a company controlled by the BENEFICIARY, of any instruments convertible into shares, and in any capital increases of the controlled company, in the event of entry of third-party investors;

 

XIV.1 — The right set forth in item XIV above shall be exercised or not by the BNDES at its discretion, and it shall be limited to the credit amount, adjusted by the TJLP plus the interest defined in Section Three, from the date of release of the funds to the date of subscription of the instruments or of the future capital increase, under the same conditions as the subscribers or investors, it being understood that, for that purpose, the BNDES shall pronounce its interest within sixty (60) days as from the date of communication of the wish to issue the instruments or of presentation of the trading to the BNDES;

 

XV — Not change the legal type of joint-stock company during the term of effectiveness of this Agreement;

 

XVI — Request the prior and written consent of the BNDES to grant loans, including the subscription of debentures, directly by the BENEFICIARY or by its controlled companies, to individuals or legal entities having or not a legal relationship with the BENEFICIARY;

 

XVII — Request the prior and express consent of the BNDES to take out loans, including the issue of debentures, from individuals or legal entities that have a legal relationship with the BENEFICIARY or not, except in the events of (i) transactions carried out to meet ordinary businesses of the BENEFICIARY or for the purpose of mere replenishment or substitution of material, and (ii) financing transactions and credits directly or indirectly obtained from the BNDES;

 

XVIII — Limit the payments to shareholders, by way of dividends, interest on equity and profit sharing, in each fiscal year, to the following percentages relating to the profit ascertained in each financial year, based on the audited annual statements: (i) twenty-five percent (25%) whenever the ratio Net Equity/ Total Assets is equal to or lower than 0.4; or (ii) fifty percent (50%) whenever this ration ranges from 0.4 to 0.7;

 

XVIII.1 — Whenever the ratio Net Equity / Total Assets exceeds 0.7%, the limitation of payment to the shareholders set forth in item XVIII shall not apply.

 

XIX — Keep a ratio Net Equity / Total Assets in excess of 0.3% during the term of effectiveness of this Agreement, based on the audited annual statements;

 

XX — Not transfer, assign, encumber or dispose of, in any event or modality, the right of ownership on the technology or the products developed by the BENEFICIARY with the funds originating from this Agreement without the prior and express authorization of the BNDES.

 

XXI — In the event of early settlement of the debt originating from this Agreement, pay to the BNDES, on the settlement date, a premium equivalent to thirty percent (30%) of the debt balance, as determined on the date of said settlement.

 

 

NINE

OBLIGATIONS OF THE PARENT INTERVENING PARTIES

 

The Parent Intervening Parties LEONARDO WASCHECK, RODRIGO WASCHECK and PAULO HENRIQUE PALÁCIOS identified in the preamble to this Agreement hereby agree to:

 

I — Submit to the BNDES for approval any proposals concerning matters relating to the encumbrance, on any account, of any share issued by the BENEFICIARY held by them, to the sale, acquisition, merger, consolidation, spin-off, or any other act that implies or may imply changes in the current setup of the BENEFICIARY, a transfer of the corporate control of the BENEFICIARY, or its ceasing from being a controlling shareholder of the BENEFICIARY, pursuant to the provisions of article 116 of Law No. 6.404, of December 15, 1976;

 

II — Not cause the inclusion in any corporate agreement, bylaws, or articles of association of the BENEFICIARY of any provision that implies:

 

a) Restrictions on the growth capacity or technological development of the BENEFICIARY;

 

b) Restrictions on the access of the BENEFICIARY to new markets; or

 

c) Restrictions on or impairment of its ability to pay the financial obligations under its transactions with the BNDES;

 

III — Not take any actions or measures that impair or alter the economic and financial balance of the BENEFICIARY;

 

IV — Take all the necessary measures to ensure the fulfillment of the purpose of this transaction;

 

V — Submit to the BNDES, within thirty (30) days from the date of correspondence from the BNDES so requiring, throughout the term of this Agreement, copies of its Income Tax Returns for the fiscal years requested;

 

VI — Assign to the BNDES the preemptive right, to be exercised by means of BNDESPAR, on the issue, by the BENEFICIARY, of any instruments convertible into shares, and in any capital increase of the BENEFICIARY, in the event of entry of third-party investors;

 

VI.1 — the rights set forth in item VI above shall be exercised or not by the BNDES at its discretion, and they shall be limited to the credit amount, as adjusted by the TJLP, plus the interest defined in Section Three, from the date of release of the funds to the date of subscription of the instruments or of the future capital contribution, under the same conditions as the subscribers or investors, for which purpose the BNDES shall pronounce its interest within sixty (60) days as from the date of communication of the wish to issue the instruments or of the presentation of the trading to the BNDES.

 

TEN

LIABILITY IN CORPORATE SUCCESSION

 

In the event of corporate succession, any successors of the Beneficiary shall be jointly and severally liable for the obligations arising from this Agreement.

 

SOLE PARAGRAPH

 

The main provision of this Section shall not apply in the event of prior consent from the BNDES to the waiver of joint and several liability in a partial spin-off.

 

ELEVEN

MUTUAL POWER OF ATTORNEY

 

The BENEFICIARY, the guarantor and the other intervening parties hereby irrevocably and irreversibly mutually appoint each other their attorneys-in-fact until the final settlement of the debt hereunder, with powers to receive service of process, notices, and summons, as well as with general judicial powers, which may be delegated to counsel, all in connection with any judicial or extrajudicial proceedings that are filed against them by the BNDES as a result of this Agreement, it being understood that they may take all actions necessary for a good and faithful performance of this power of attorney.

 

 

TWELVE

CONDITIONS FOR USE OF THE CREDIT

 

In addition to compliance, as appropriate, with the conditions set forth in articles 5 and 6 of the abovementioned “PROVISIONS APPLICABLE TO BNDES CONTRACTS” and in the “MONITORING RULES AND INSTRUCTIONS” referred to in article 2 of such “PROVISIONS,” the use of the credit shall be subject to the following:

 

I — For use of each credit installment:

 

a) presentation of documents proving, at the discretion of the BNDES, that the capital stock of the BENEFICIARY corresponds, at the time of the release, to at least forty-five percent (45%) of the total amount of the financial debts of the BENEFICIARY.

 

a.1.) For definition purposes, total financial debts shall be understood as the sum of the balance of the consolidated onerous debts of the BENEFICIARY, including the credit installments already released by the BNDES and their respective charges, in addition to the next credit installment to be released by the BNDES; loans and financings, mutuums, issuance of fixed-income securities, promissory notes, and debentures, whether convertible or not, in the local or international capital market, as well as the sale or assignment of future receivables, if they are accounted for as obligations, and other indebtedness financial transactions of the BENEFICIARY recorded in current and non-current liabilities.

 

b) No occurrence of any fact that, at the discretion of the BNDES, may substantially alter the economic and financial status of the beneficiary or impair the execution of the project financed hereunder by altering it or preventing its completion in accordance with the terms of the project approved by the BNDES;

 

c) Submission by the BENEFICIARY of a Clearance Certificate of Social-Security Contributions — CND or of a Certificate of Suspended Social-Security Contribution — CPD - EN, issued by the Brazilian Federal Revenue Service (RFB) via INTERNET, to be obtained by the BENEFICIARY at www.receita.fazenda.gov.br or and checked by the BNDES on the same website;

 

d) Proof of good standing with environmental agencies or, if such proof has already been submitted and is in force, a statement from the BENEFICIARY of the continued validity of such document.

 

e) Compliance with the obligation set forth in item XIX of Section Eight.

 

THIRTEEN

GUARANTEE

 

LEONARDO WASCHECK, RODRIGO WASCHECK and PAULO HENRIQUE PALÁCIOS, identified in the preamble, accept this Agreement in the capacity of guarantors and principal payors and expressly waives the benefits of articles 366, 827, and 838 of the Civil Code, it being understood that it shall be jointly and severally liable, until the final settlement of this Agreement, for the faithful and exact performance of all the obligations assumed by the BENEFICIARY hereunder.

 

FOURTEEN

SPOUSAL CONSENT

 

The Intervening Parties MARIA CRISTINA MARINS BUTIGNOLI WASCHECK and LUCIANE NALIN DE SOUZA, identified in the preamble of this Agreement, authorize, respectively, their spouse and common-law partner, the Intervening Parties RODRIGO WASCHECK and PAULO HENRIQUE PALÁCIOS, in accordance with the provisions of article 1.647, III, of the Civil Code, to provide the guarantee to which Section Thirteen refers.

 

SOLE PARAGRAPH

 

In the event of change in the matrimonial or steady union regime during effectiveness of this Agreement, the guarantors shall remain subject to all effects of the guarantee provided to the BNDES, in the exact terms and under the exact conditions agreed hereunder.

 

 

FIFTEEN

DEFAULT

 

In the event of default of any obligations assumed by the BENEFICIARY and by the Intervening Parties, the provisions of arts. 40-47-A of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section Eight, item I shall apply.

 

SIXTEEN

FILING FINE

 

In the event of collection of the debt originating from this Agreement in Court, the BENEFICIARY shall pay a fine of ten percent (10%) of the principal and debt charges, in addition to extrajudicial and judicial expenses and attorneys’ fees due as from the filing date of the action for collection.

 

SEVENTEEN

EARLY SETTLEMENT OF THE DEBT

 

In the event of early settlement of the debt, the guarantees shall be released, and the provisions of art. 18, paragraph two of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section Eight, item I shall apply to the other obligations.

 

EIGHTEEN

ACCELERATION

 

The BNDES may accelerate this Agreement, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, if, in addition to the events mentioned in articles 39 and 40 of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section Eight, item I, the BNDES can demonstrate:

 

a) A downsizing of the staff of the BENEFICIARY in violation of the provisions of Section Eight, item III;

 

b) The existence of a final and unappealable adverse judgment resulting from any actions taken by the Beneficiary which imply child labor, slave labor, or environmental crime;

 

c) The inclusion in a corporate agreement, bylaws, or articles of association of the BENEFICIARY or of any of its controlling companies of any provision that implies restrictions on or an impairment of its ability to pay its financial obligations arising from this transaction;

 

d) Noncompliance with the obligation set forth in item VIII of Section Eight.

 

PARAGRAPH ONE

 

This Agreement shall be accelerated, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, in the event of application of the proceeds from this Agreement to any purpose other than that provided for in Section One. The BNDES shall give notice of such fact to the Federal Prosecution Office for the purposes and effects of Law No. 7.492 of June 16, 1986.

 

PARAGRAPH TWO

 

This Agreement shall also be accelerated, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, on the date when any person who exercises a salaried position at the BENEFICIARY or is among its owners, controlling members, or officers is certified or takes office as a Federal Deputy or Senator, as such persons are subject to the prohibitions set forth in article 54, items I and II of the Federal Constitution. No default charges shall be imposed if the payment occurs within five (5) business days from the date of such certification, under penalty of otherwise the charges established for events of acceleration due to default being imposed.

 

PARAGRAPH THREE

 

No acceleration based on the provisions of clause “b” shall occur if the remediation imposed is complied with or as long as the sentence imposed on the BENEFICIARY is being served, subject to the due process of law.

 

 

NINETEEN

DUE DATES ON PUBLIC HOLIDAYS

 

The due dates of all principal and charges repayment installments which fall on Saturdays, Sundays, or national, state, district, or municipal public holidays, including banking holidays, shall be, for all purposes and effects of this Agreement, postponed to the first subsequent business day, in which case the charges shall be calculated up to such date, and the following regular period for determination and calculation of the charges under this Agreement shall also start on such date.

 

SOLE PARAGRAPH

 

Unless otherwise expressly provided, the public holidays in the place where the principal place of business of the BENEFICIARY is located, the address of which is indicated in this Agreement, shall be considered for the purposes of the main provision of this Section.

 

TWENTY

JURISDICTION

 

The courts of Rio de Janeiro and the courts sitting in the place where the headquarters of the BNDES are located are hereby elected as the Courts of competent jurisdiction for any disputes arising from this Agreement which cannot be resolved out of court.

 

The BENEFICIARY has presented the Clearance Certificate of Social-Security Contributions — CND No. 000222013-21024447, issued on February 18, 2013 by the Brazilian Federal Revenue Service and valid through August 17, 2013.

 

The BNDES is represented herein by its Vice President, in accordance with the power of attorney drawn up in Book No. 925, page No. 120, act No. 108 of the 22nd Notary Public of the Judicial District of the Capital of the State of Rio de Janeiro, and by the Officer of the BNDES, both undersigned and identified below.

 

(SIGNATURE PAGE OF THE CREDIT FACILITY FINANCING AGREEMENT NO. 13.2.0488.1 ENTERED INTO BY AND BETWEEN THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BNDES) AND INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S/A, WITH INTERVENING THIRD PARTIES)

 

The pages of this Instrument were initialed by Lílian Metelli Arcos de Oliveira Benjamin, counsel for the BNDES, upon authorization from the undersigned legal representatives.

 

In witness whereof, the parties executed this instrument in four (4) identical counterparts, in the presence of the undersigned witnesses.

 

Rio de Janeiro, August 15, 2013.

 

For the BNDES:

 

	
/s/ Wagner Bittencourt de Oliveira
    	
 
    	
/s/ Julio Cesar Maciel   Ramundo
    
	
Wagner Bittencourt de Oliveira
    	
 
    	
Julio Cesar Maciel Ramundo
    
	
Vice-President
    	
 
    	
Officer
    

 

BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL — BNDES

 

For the BENEFICIARY:

 

	
/s/ Rodrigo Wascheck
    	
 
    	
/s/ Leonardo Wascheck
    

 

INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S/A

 

GUARANTORS

 

	
/s/ Leonardo Wascheck
    	
 
    	
/s/ Rodrigo Wascheck
    
	
LEONARDO WASCHECK
    	
 
    	
RODRIGO WASCHECK
    
	
 
    	
 
    	
 
    
	
/s/ Paulo Henrique Palácios
    	
 
    	
 
    
	
PAULO HENRIQUE PALÁCIOS
    	
 
    	
 
    

 

 

INTERVENING PARTIES:

 

	
/s/ Maria Cristina Marins Butignoli Wascheck
    	
 
    	
 
    
	
MARIA CRISTINA MARINS BUTIGNOLI WASCHECK
    	
 
    	
 
    

 

	
/s/ Luciane Nalin de Souza
    	
 
    	
 
    
	
LUCIANE NALIN DE SOUZA
    	
 
    	
 
    

 

 

WITNESSES:

 

	
/s/ Renata da Costa Morais
    	
 
    	
/s/ Daniel Alves Lima
    
	
Name: Renata da Costa Morais
    	
 
    	
Name: Daniel Alves Lima
    
	
Identity No.: 09843587-8
    	
 
    	
Identity No.: 009.933.947-5
    
	
Individual Taxpayers Register (CPF) No.: 072.348.467-86
    	
 
    	
Individual Taxpayers Register (CPF) No.: 014.512.457-69
    

 

 

BNDES

 

AMENDMENT NO. 1 TO CREDIT FACILITY FINANCING AGREEMENT No. 13.2.0488.1, DATED AUGUST 15, 2013, ENTERED INTO BY AND BETWEEN THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BNDES) AND LINX SISTEMAS E CONSULTORIA LTDA., WITH AN INTERVENING THIRD PARTY, AS PROVIDED BELOW:

 

The NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL - BNDES), herein referred to simply as the BNDES, a federal publicly-held company, with its principal place of business in Brasília, Federal District, and services in this City, at Avenida República do Chile No. 100, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 33.657.248/0001-89, by its undersigned representatives;

 

and

 

LINX SISTEMAS E CONSULTORIA LTDA. (successor by merger of INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S.A.), hereinafter referred to as the BENEFICIARY, a limited liability company with its principal place of business at Avenida das Nações Unidas, No. 7221, 4th, 5th, 6th, 7th, and 14th floors, Birmann 21 Building, Pinheiros, Postal Code (CEP): 05425-902, State of São Paulo, in the City of São Paulo, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 54.517.628/0001-98, by its undersigned representatives;

 

And also, as INTERVENING PARTY, LINX S.A., a corporation with its principal place of business at Avenida das Nações Unidas, No. 7221, 7th floor, Birmann 21 Building, Postal Code (CEP): 05425-902, State of São Paulo, in the City of São Paulo, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 06.948.969/0001-75, by its undersigned representatives, have mutually agreed to amend Credit Facility Financing Agreement No. 13.2.0488.1, hereinafter referred to simply as the AGREEMENT, entered into on August 15, 2013 by and between the BNDES and the BENEFICIARY, with intervening third parties, recorded under No. 1151290 with the 1st Registry of Deeds and Documents of the Judicial District of Campinas, SP, on August 22, 2013, and under No. 1084887 with the 3rd Registry of Deeds and Documents of the Judicial District of Rio de Janeiro, RJ, on August 28, 2013, of which this instrument shall henceforth be an integral part for all legal purposes and effects, in accordance with the following clauses:

 

ONE

INCREASE OF THE INTEREST RATE

 

By this Amendment, the BNDES and the BENEFICIARY agree to increase, effective May 4, 2017, the interest rate referred to in Section Three of the AGREEMENT from one percent (1.0%) per annum above the Long-Term Interest Rate (TJLP) (the “Original Interest Rate”) to two point thirty-six percent (2.36%) per annum above the Long-Term Interest Rate (TJLP) (the “New Interest Rate”), it being understood that the other conditions for accrual and payment of interest, as well as the system set forth in Section Three of the AGREEMENT, shall remain in force.

 

SOLE PARAGRAPH

 

The BENEFICIARY shall pay any difference between the New Interest Rate and the Original Interest Rate that has not yet been paid together with the interest and principal installment to be repaid on the 15th of the month immediately following the date of execution hereof, without prejudice to the collection of the charges set forth in the Provisions Applicable to BNDES Contracts referred to in Section Eight, item I of the AGREEMENT.

 

TWO

CREATION OF GUARANTEE

 

By this Amendment, the Parties agree to include LINX S.A., identified in the preamble to this Amendment, which shall henceforth assume all the obligations of the Intervening Parties and Guarantors under Section Thirteen of the AGREEMENT in the capacity of guarantor and principal payor and expressly waives the benefits of articles 366, 827, and 838 of the Civil Code, it being understood that it shall be jointly and severally liable, until the final settlement of the AGREEMENT, for the faithful and exact performance of all the obligations assumed by the BENEFICIARY.

 

 

THREE

RELEASE OF INTERVENING PARTIES AND GUARANTORS LEONARDO WASCHECK, RODRIGO WASCHECK, AND PAULO HENRIQUE PALÁCIOS

 

Intervening Parties and Guarantors LEONARDO WASCHECK, RODRIGO WASCHECK, and PAULO HENRIQUE PALÁCIOS, all identified in the preamble to the AGREEMENT, are hereby released from all obligations set forth in the AGREEMENT.

 

FOUR

CONTRACTUAL CHANGES

 

By this Amendment, as a result of the merger of INTERCAMP SISTEMAS E COMÉRCIO DE INFORMÁTICA S.A. into LINX SISTEMAS E CONSULTORIA LTDA., identified in the preamble, the Parties agree to make the following changes in the AGREEMENT: i) deletion of items VIII, IX, XI, XIV, XV, XVI, XVII, XVIII, XIX, and XXI from Section Eight, ii) addition of the obligations referred to in Section Eight, items XII, XVI, XVII, XVIII, XIX, XX, and XXI of Agreement No. 15.2.0579.1 of December 11, 2015 to Section Eight of the AGREEMENT, iii) amendment to Section Nine, iv) amendment to the main provision of Section Thirteen, v) deletion of clause “d” from the main provision of Section Eighteen, and vi) deletion of Section Fourteen.

 

SOLE PARAGRAPH

 

As a result of the main provision of this Section, Sections Eight, Nine, and Thirteen of the AGREEMENT shall henceforth read as follows:

 

“EIGHT

SPECIAL OBLIGATIONS OF THE BENEFICIARY

 

The BENEFICIARY agrees to:

 

I — comply, as applicable, until the final settlement of the debt arising from this Agreement, with the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” approved by Resolution No. 665 of December 10, 1987, as partially amended by Resolution No. 775 of December 16, 1991, by Resolution No. 863 of March 11, 1996, by Resolution No. 878 of September 4, 1996, by Resolution No. 894 of March 6, 1997, by Resolution No. 927 April 1, 1998, by Resolution No. 976 of September 24, 2001, by Resolution No. 1.571 of March 4, 2008, by Resolution No. 1.832 of September 15, 2009, by Resolution No. 2.078 of March 15, 2011, by Resolution No. 2.139 of August 30, 2011, and by Resolution No. 2.181 of November 8, 2011, all issued by the Executive Board the BNDES and published in the Federal Official Gazette (Diário Oficial da União) (Section I) on December 29, 1987, December 27, 1991, April 8, 1996, September 24, 1996, March 19, 1997, April 15, 1998, October 31, 2001, March 25, 2008, November 6, 2009, April 4, 2011, September 13, 2011, and November 17, 2011, respectively, a copy of which is hereby delivered to the BENEFICIARY, which, having become aware of all the contents thereof, represents that it accepts it as an integral and inseparable part of this Agreement for all legal purposes and effects;

 

II — use the total amount of the credit within twenty-four (24) months from the date of issuance of this Agreement, without prejudice to the BNDES’s option, before or after the expiration of such term, under the guarantees set forth in this Agreement, to extend such term upon express authorization by letter, regardless of any other formality or registration;

 

III — in the event of a downsizing of the staff of the BENEFICIARY during the term of this Agreement as a result of the project referred to in Section One, offer a training program focused on job opportunities in the region and/or a worker repositioning program, upon submission to the BNDES for consideration of a document specifying and attesting to the completion of the negotiations held with the relevant trade union or unions involved in the dismissal process;

 

IV — take, during the term of this Agreement, measures and actions to prevent or correct any damage to the environment and occupational safety and health which may be caused by the project referred to in Section One;

 

V — maintain its good standing as to its obligations to the environmental agencies during the term of this Agreement;

 

VI — comply, during the term of this Agreement, with the provisions of law applicable to disabled persons;

 

 

VII — give notice to the BNDES, on the date of the event, of the name and Individual Taxpayers Register of the Ministry of Finance (CPF/MF) number of any person who, whether exercising a salaried position or being among its owners, controlling members, or officers, is certified or takes office as a Federal Deputy or Senator;

 

VIII — disclose, on the website of the BENEFICIARY on the Internet and in a prominent place at the headquarters of the company, that it is a financial cooperation beneficiary of the BNDES, according to the model to be provided by the BNDES;

 

IX — submit to the BNDES, within thirty (30) days from the date of correspondence from the BNDES so requiring, throughout the term of this Agreement, copies of the Income Tax Returns of the BENEFICIARY for the fiscal years requested;

 

X — submit, whenever requested by the BNDES, documents of any nature of companies in which it holds any direct or indirect equity interest;

 

XI — not transfer, assign, encumber, or dispose of, under any circumstances or in any manner, its ownership rights in any technology or products developed by the BENEFICIARY with funds from this Agreement without prior express authorization from the BNDES;

 

XII — not incorporate, directly or indirectly, or acquire an equity interest in companies, in Brazil or abroad, without prior express authorization from the BNDES, throughout the term of the Agreement, except in case of transactions involving less than fifty million Reais (R$50,000,000.00);

 

XIII — not grant loans, directly or indirectly, including by subscription of debentures or profit-sharing bonds, to any individuals or legal entities, whether or not members of the same business group as the BENEFICIARY, without prior authorization from the BNDES, subject to the provisions of items XIII.1 and XIII.2 below;

 

XIII.1 — The transactions described in Item XIII include advancements and/or any other transactions relating to the granting of credits in favor of members and related parties;

 

XIII.2 — The interest on the loans shall be at least three percent (3%) above that stipulated in Section Three, except when such transactions are carried out for the purpose described in Section One;

 

XIV — not assume any new debts, directly or indirectly, including by issuance of debentures or profit-sharing bonds, before any individuals or legal entities, whether or not members of the same business group as the BENEFICIARY, without prior authorization from the BNDES, subject to the provisions of item XIV.1 below;

 

XIV.1 — the following events are not included in the debts referred to in Item XIV above: (i) financings entered into directly and/or indirectly with the BNDES, (ii) transactions carried out to meet ordinary businesses of the BENEFICIARY, and (iii) loans the amounts of which do not exceed the amount of ten million Reais (R$10,000,000.00) per business year throughout the term of this Agreement;

 

XV — submit to the BNDES, within the term of the Agreement, within one hundred and eighty (180) days after the end of each fiscal year, consolidated annual financial statements covering its individual results and the results of all its subsidiaries headquartered within the national territory, together with the respective opinions prepared by an independent audit firm registered with the Brazilian Securities Commission (CVM);

 

XVI — not create, except upon prior express authorization from the BNDES, security interests of any kind in transactions with other creditors without providing the same type of security to the BNDES under the same conditions and with the same priority, except in the events set forth in Item XVII of this Section;

 

XVII — give prior express notice to the BNDES of the creation of any security interest by operation of law or as a bond in connection with any lawsuits and administrative proceedings in which it appears as a defendant*, as well as in the event of fiduciary ownership in financings for purchase of equipment; and

 

XVIII — not sell or encumber, without prior authorization from the BNDES, any permanent assets the amount of which exceeds ten million Reais (R$10,000,000.00) per annum, except in the case of:

 

a) unserviceable or obsolete goods; or

 

 

b) assets which are replaced by new ones with identical purpose.

 

NINE

OBLIGATIONS OF THE PARENT INTERVENING PARTY

 

INTERVENING PARTY LINX S.A., identified in the preamble to this Agreement, hereby agrees to:

 

I — submit to the BNDES for approval any proposals concerning matters relating to the encumbrance, on any account, of any share held by it in the share capital of the BENEFICIARY, to the sale, acquisition, merger, consolidation, spin-off, or any other act that implies or may imply changes in the current setup of the BENEFICIARY, a transfer of the corporate control of the BENEFICIARY, or its ceasing from being a majority member of the BENEFICIARY;

 

II — not cause the inclusion in any corporate agreement, bylaws, or articles of association of the BENEFICIARY of any provision that implies:

 

a) restrictions on the growth capacity or technological development of the BENEFICIARY;

 

b) restrictions on the access of the BENEFICIARY to new markets; or

 

c) restrictions on or impairment of its ability to pay the financial obligations under its transactions with the BNDES;

 

III — not take any actions or measures that impair or alter the economic and financial balance of the BENEFICIARY;

 

IV — take all the necessary measures to ensure the fulfillment of the purpose of this transaction;

 

V — not incorporate, directly or indirectly, or acquire an equity interest in companies, within the Country or abroad, without prior express authorization from the BNDES, throughout the term of the Agreement, except in case of transactions involving less than fifty million Reais (R$50,000,000.00);

 

VI — submit, whenever requested by the BNDES, documents of any nature of companies in which it holds any direct or indirect equity interest;

 

VII — submit to the BNDES, within thirty (30) days from the date of correspondence from the BNDES so requiring, throughout the term of this Agreement, copies of its Income Tax Returns for the fiscal years requested;

 

VIII — request prior consent from the BNDES to any transfer, assignment, encumbrance, or disposal of shares issued by the BENEFICIARY and its subsidiaries throughout the term of this Agreement;

 

IX — not sell or encumber, without prior authorization from the BNDES, any permanent assets the amount of which exceeds ten million Reais (R$10,000,000.00) per annum, except in the case of:

 

a) unserviceable or obsolete goods; or

 

b) assets which are replaced by new ones with identical purpose; and

 

X — maintain, during the term of the Agreement, two of the following ratios, as determined semi-annually in its consolidated financial statements audited by an independent audit firm registered with the Brazilian Securities Commission:

 

a) General Indebtedness/Total Assets: equal to or less than 60%;

 

b) Net Debt/EBITDA: equal to or less than 2.00;

 

c) EBITDA/Net Operating Revenue: equal to or greater than 20%.

 

PARAGRAPH ONE

 

If the BENEFICIARY fails to achieve at least two of the ratios established in Item X of this Section, it agrees to either create, within one hundred and eighty (180) days from the date of written notice from the BNDES, security interests accepted by the BNDES in an amount corresponding to at least one hundred and thirty percent (130%) of the amount of the financing or of the debt arising therefrom or submit a bank guarantee for the total amount of the debt provided by a financial institution which, at the discretion of the BNDES, is in an economic and financial situation that ensures it a degree of notorious solvency, unless two of the abovementioned ratios are achieved within such period.

 

 

PARAGRAPH TWO

 

For purposes of calculation of the ratios set forth in Item X of this Section, the following definitions and standards shall be adopted:

 

a) EBITDA - Operating Income before interest, income tax, depreciation, and amortization;

 

b) Net Debt — Aggregate sum of the balance of the consolidated onerous debts of the INTERVENING PARTY, including loans and financings, mutuums, issuance of fixed-income securities, promissory notes, and debentures, whether convertible or not, in the local or international capital market, as well as the sale or assignment of future receivables, if they are accounted for as obligations, and other indebtedness financial transactions of the company recorded in current and non-current liabilities less Cash and Cash Equivalents (cash and financial investments);

 

c) General Indebtedness — Aggregate sum of Current and Non-Current Liabilities;

 

d) The parameters relating to the result (i.e. EBITDA and Net Operating Revenue) refer to the figures for the last twelve (12) months prior to the calculation;

 

e) The financial ratio referred to in item X, clause “b” of the main provision of this Section shall be regarded as not achieved if the figure determined for such ratio is negative due to negative EBITDA; and

 

f) For purposes of calculation of the financial ratio referred to in item X, clause “b” of the main provision of this Section, the amounts classified in the Balance Sheet of the INTERVENING PARTY as “Accounts Payable for Acquisition of Subsidiaries” shall not be regarded as Net Debt.

 

(...)

 

THIRTEEN

GUARANTEE

 

LINX S.A., identified in the preamble, accepts this Agreement in the capacity of guarantor and principal payor and expressly waives the benefits of articles 366, 827, and 838 of the Civil Code, it being understood that it shall be jointly and severally liable, until the final settlement of this Agreement, for the faithful and exact performance of all the obligations assumed by the BENEFICIARY hereunder.”

 

FIVE

RATIFICATION

 

The Parties hereto hereby ratify all the clauses and conditions of the AGREEMENT, to the extent not conflicting with the provisions of this Amendment, and maintain the other warranties agreed upon in such AGREEMENT, it being understood that this instrument shall not imply a novation.

 

The pages of this instrument were initialed by Natália Teixeira Fernandes Lopez, counsel for the BNDES, upon authorization from the undersigned legal representatives.

 

In witness whereof, the parties executed this instrument in two (2) identical counterparts, in the presence of the undersigned witnesses.

 

Rio de Janeiro, July 31, 2017

 

For the BNDES:

 

	
/s/   Cláudio Figueiredo Coelho Leal
    	
 
    	
/s/   Claudia Pimentel Trindade Prates
    

 

BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL - BNDES

 

	
Cláudio Figueiredo Coelho Leal
    	
 
    	
Claudia P. Trindade Prates
    
	
Superintendent of the Industrial and   Services Area
    	
 
    	
Officer
    

 

 

For the BENEFICIARY:

 

	
/s/ Denis Herszkowicz
    	
 
    	
/s/ Alberto Menache
    

 

LINX SISTEMAS E CONSULTORIA LTDA.

 

INTERVENING PARTY:

 

	
/s/ Denis Herszkowicz
    	
 
    	
/s/ Denis Herszkowicz
    

 

LINX S.A.

 

WITNESSES:

 

	
/s/ Mara Regina de Almeida Vitta
    	
 
    	
/s/ Ana Paula Frijo
    
	
Name: Mara Regina de Almeida Vitta
    	
 
    	
Name: Ana Paula 
    
	
Identity No.: 25.347.150-3 SSP/SP
    	
 
    	
Identity No.: 28.733.692X
    
	
Individual Taxpayers Register (CPF) No.: 271.370.028-03
    	
 
    	
Individual Taxpayers Register (CPF) No.: 281772.648.00Exhibit 10.7

 

BNDES

 

CREDIT FACILITY FINANCING AGREEMENT No. 18.2.0547.1 ENTERED INTO BY AND BETWEEN THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT — BNDES AND LINX SISTEMAS E CONSULTORIA LTDA., WITH INTERVENING THIRD PARTY, AS PROVIDED BELOW:

 

The NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT (BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL - BNDES), herein referred to simply as the BNDES, a federal publicly-held company, with its principal place of business in Brasília, Federal District, and services in this City, at Avenida República do Chile No. 100, enrolled with the National Corporate Taxpayers Register (CNPJ) under No. 33.657.248/0001-89, by its undersigned representatives;

 

and

 

LINX SISTEMAS E CONSULTORIA LTDA., hereinafter referred to as BENEFICIARY, a limited-liability company, with its principal place of business at Avenida das Nações Unidas, No. 7221, 4th, 5th, 6th, 7th and 14th floors, Building Birmann 21, Pinheiros, State of São Paulo, in the City of São Paulo, enrolled with the CNPJ under No. 54.517.628/0001-98, by its undersigned representatives;

 

and also, as INTERVENING CONTROLLING COMPANY, LINX S.A., a joint-stock company with its principal place of business at Avenida das Nações Unidas, No. 7221, 7th Floor, Suite 01, Building Birmann 21, State of São Paulo, in the City of São Paulo, enrolled with the CNPJ under No. 06.948.969/0001-75, by its undersigned representatives,

 

have mutually agreed as follows:

 

ONE

NATURE. AMOUNT AND PURPOSE OF THE AGREEMENT

 

The BNDES extends to the BENEFICIARY, by this Agreement, a credit in the amount of three hundred and eighty-eight million, four hundred and forty-one thousand Reais (R$388,441,000.00), divided into two (2) Subcredits, in the following amounts:

 

I - Subcredit “A”: three hundred and eight-seven million, six hundred and forty-one thousand Reais (R$387,641,000.00) out of its ordinary funds, which consist, among other sources, of funds from the Worker Support Fund (FAT) and funds originating from the FAT — Special Deposits and from the Social Integration Program/Civil Servant Asset Formation Program (PIS/PASEP) Equity Fund, subject, as to their allocation, to the laws applicable to each such source, in accordance with the provisions of Section Two, Paragraph Two (Credit Availability); and

 

II - Subcredit “B”: Eight hundred thousand Reais (R$800.000,00) out of its ordinary funds, which consist, among other sources, of funds from the Worker Support Fund (FAT) and funds originating from the FAT — Special Deposits and from the PIS/PASEP Equity Fund, subject, as to their allocation, to the laws applicable to each such source, in accordance with the provisions of Section Two, Paragraph Two (Credit Availability).

 

SOLE PARAGRAPH

 

The credit granted hereunder shall be allocated as follows:

 

I - Subcredit “A”: to the Investment Plan for the period 2018-2020, contemplating actions in infrastructure, research and development, training, marketing and sales; and

 

II - Subcredit “B”: to the investments in social project(s).

 

TWO

CREDIT AVAILABILITY

 

The credit shall be made available to the BENEFICIARY, in installments, upon satisfaction of the release conditions referred to in Section Twelve (Financial Cooperation Release Conditions), according to the needs for the execution of 

 

 

the financed project, subject to the BNDES financial schedule, which is subordinated to the definition of funds for its investments by the National Monetary Council.

 

PARAGRAPH ONE

 

At the time of release of the funds under this transaction, the debits determined by law and those contractually authorized by the BENEFICIARY shall be made. The total remaining balance of funds available to the BENEFICIARY shall be immediately transferred to checking account No. 13.060-8 held by the BENEFICIARY with Banco Itaú Unibanco S.A. (No. 341), branch No. 0191.

 

PARAGRAPH TWO

 

The amount of each installment of the credit to be extended to the BENEFICIARY shall not be adjusted for inflation or otherwise adjusted.

 

PARAGRAPH THREE

 

The total amount of the credit shall be used by the BENEFICIARY within twenty-four (24) months from the date of execution of this Agreement, without prejudice to the BNDES’s option, before or after the expiration of such term, under the guarantees set forth in this Agreement, to extend such term upon express authorization by letter, regardless of any other formality or registration.

 

THREE

INTEREST ON SUBCREDIT “A”

 

As from the Disbursement Date or from the date of payment of the immediately preceding Compensation, as the case may be, to the maturity date or payment of the immediately subsequent Compensation, conventional interest shall be due, levied on the Principal resulting from Subcredit “A”, corresponding to the rate composed (i) of the accrued variation of the National Broad Consumer Price Index disclosed by the Brazilian Geography and Statistics Institute IBGE (“IPCA”), calculated on a pro rata temporis basis, (ii) of the prefixed interest rate of three point ten percent (3.10%) per annum (J) and (iii) of the BNDES spread of one point thirty-seven percent (1.37%) per annum (“BNDES Spread”), the last two of which based on a calendar year with two hundred and fifty-two (252) Business Days, calculated on a pro rata temporis basis, under a composed capitalization regime, in accordance with the following formula (“Compensation”):

 

JU = SD x (InterestFactor-1)

 

where:

 

JU: corresponds to the accrued Compensation of the period, calculated with [two] (2) decimals, rounded, due in the end of each Interest Period;

 

SD = corresponds to the debit balance on the first day of the Interest Period with [two] (2) decimals, rounded;

 

InterestFactor: interest factor determined in accordance with the following formula:

 

InterestFactor = (TLPFactor x SpreadFactor)

 

Where:

 

TLP Factor: corresponds to the accrued factor of the monthly percentage variations of the IPCA composed with the prefixed interest rate (J), calculated as follows:

 

 

Where:

 

n = total number of indices considered in the calculation, where “n” is a whole number;

 

 

pi = corresponds to the percentage variation of the National Broad Consumer Price Index (IPCA), as determined and disclosed by the Brazilian Geography and Statistics Institute - IBGE (“IPCA”), of the second month before the adjustment month, if the adjustment is made before the anniversary date. On the very anniversary date or after that date, it shall correspond to the amount of the percentage variation of the IPCA of the month preceding the month of adjustment;

 

dup = number of Business Days from (i) (and including) the Disbursement Date for the first month of adjustment or from (ii) (and including) the immediately preceding anniversary, for the months, to (i) (and excluding) the calculation date or to (ii) (and excluding) the subsequent anniversary date, whichever is lower, limited to “dut”, it being understood that “dup” shall be a whole number;

 

dut = number of Business Days from (and including) the preceding Anniversary Date to (and excluding) the subsequent Anniversary Date, it being understood that “dut” shall be a whole number;

 

J = corresponds to the prefixed interest rate times the adjustment factor, pursuant to the provisions of article 3 of Law No. 13.483, of 2017, both as determined and disclosed by the Central Bank of Brazil; and

 

du =corresponds to the number of Business Days from (i) and including the Disbursement Date, in the case of the first Interest Period, or from (ii) and including the maturity date or immediately preceding payment of Compensation, in the other cases, to and excluding the calculation date, it being understood that “du” shall be a whole number.

 

Spread Factor: corresponds to the BNDES spread, according to the formula below:

 

 

Where:

 

du =corresponds to the number of Business Days from (i) and including the Disbursement Date, in the case of the first Interest Period, or from (ii) and including the maturity date or immediately preceding payment of Compensation, in the other cases, to and excluding the calculation date, it being understood that “du” shall be a whole number.

 

The first Interest Period is comprised from and including the Disbursement Date to and excluding the maturity date of the first Compensation. The other Interest Periods commence on and include the final date of the preceding Interest period and end on and exclude the subsequent scheduled maturity date of the Compensation.

 

Upon occurrence of each financial event on a date other than a maturity date, a new debit balance shall be calculated considering the effects of this event and capitalizing the interest determined to that date. Financial event shall be understood as any and all financial fact that results or which may result in a change in the debit balance.

 

The amount determined in accordance with the main provision shall be payable quarterly, on the fifteenth (15th) day of the months of March, June, September, and December of each year, during the period between the 15th day following formalization of this agreement and December 15, 2020, and monthly, from and including January 15, 2021, together with the principal amount repayment installments, and at the maturity or settlement of this Agreement, subject to the provisions of Section Eighteen (Due Dates on Public Holidays).

 

All intermediary calculations shall be made with sixteen (16) decimals and not rounded.

 

The Anniversary Date corresponds to the 15th day of each month.

 

FOUR

INTEREST ON SUBCREDIT “B”

 

From the Disbursement Date or from the date of payment of the immediately preceding Compensation, as the case may be, to the maturity date or payment of the immediately subsequent Compensation, conventional interest shall be due, levied on the Principal resulting from Subcredit “B”, corresponding to the rate composed (i) of the accrued variation of the National Broad Consumer Price Index disclosed by the Brazilian Geography and Statistics Institute IBGE (“IPCA”), calculated on a pro rata temporis basis, (ii) of the prefixed interest rate of three point ten percent (3.10%) per annum (J) and (iii) of the BNDES spread of ninety-seven hundredths percent (0.97%) per annum (“BNDES Spread”), the last two 

 

 

of which based on a calendar year with two hundred and fifty-two (252) Business Days, calculated on a pro rata temporis basis, under a composed capitalization regime, in accordance with the following formula (“Compensation”):

 

JU = SD x (InterestFactor-1)

 

where:

 

JU: corresponds to the accrued Compensation of the period, calculated with [two] (2) decimals, rounded, due in the end of each Interest Period;

 

SD = corresponds to the debit balance on the first day of the Interest Period with [two] (2) decimals, rounded;

 

InterestFactor: interest factor determined in accordance with the following formula:

 

InterestFactor = (TLPFactor x SpreadFactor)

 

Where:

 

TLP Factor: corresponds to the accrued factor of the monthly percentage variations of the IPCA composed with the prefixed interest rate (J), calculated as follows:

 

Where:

 

 

N = total number of indices considered in the calculation, where “n” is a whole number;

 

pi = corresponds to the percentage variation of the National Broad Consumer Price Index (IPCA), as determined and disclosed by the Brazilian Geography and Statistics Institute - IBGE (“IPCA”), of the second month before the adjustment month, if the adjustment is made before the anniversary date. On the very anniversary date or after that date, it shall correspond to the amount of the percentage variation of the IPCA of the month preceding the month of adjustment;

 

dup = number of Business Days from (i) (and including) the Disbursement Date for the first month of adjustment or from (ii) (and including) the immediately preceding anniversary, for the months, to (i) (and excluding) the calculation date or to (ii) (and excluding) the subsequent anniversary date, whichever is lower, limited to “dut”, it being understood that “dup” shall be a whole number;

 

dut = number of Business Days from (and including) the preceding Anniversary Date to (and excluding) the subsequent Anniversary Date, it being understood that “dup” shall be a whole number;

 

J = corresponds to the prefixed interest rate times the adjustment factor, pursuant to the provisions of article 3 of Law No. 13.483, of 2017, both as determined and disclosed by the Central Bank of Brazil; and

 

du = corresponds to the number of Business Days from (i) and including the Disbursement Date, in the case of the first Interest Period, or from (ii) and including the maturity date or immediately preceding payment of Compensation, in the other cases, to and excluding the calculation date, it being understood that “du” shall be a whole number.

 

Spread Factor: corresponds to the BNDES Spread: according to the formula below:

 

 

Where:

 

du = corresponds to the number of Business Days from (i) and including the Disbursement Date, in the case of the first Interest Period, or from (ii) and including the maturity date or immediately preceding payment of Compensation, in the other cases, to and excluding the calculation date, it being understood that “du” shall be a whole number.

 

 

The first Interest Period is comprised from and including the Disbursement Date to and excluding the maturity date of the first Compensation. The other Interest Periods commence on and include the final date of the preceding Interest period and end on and exclude the subsequent scheduled maturity date of the Compensation.

 

Upon occurrence of each financial event on a date other than a maturity date, a new debit balance shall be calculated considering the effects of this event and capitalizing the interest determined to that date. Financial event shall be understood as any and all financial fact that results or which may results in a change in the debit balance.

 

The amount determined in accordance with the main provision shall be payable quarterly, on the fifteenth (15th) day of the months of March, June, September, and December of each year, during the period between the 15th day following formalization of this agreement and December 15, 2020, and monthly, from and including January 15, 2021, together with the principal amount repayment installments, and at the maturity or settlement of this Agreement, subject to the provisions of Section Eighteen (Due Dates on Public Holidays).

 

All intermediary calculations shall be made with sixteen (16) decimals and not rounded.

 

The Anniversary Date corresponds to the 15th day of each month.

 

FIVE

DEBT PROCESSING AND COLLECTION

 

The collection of principal amount and charges shall be made through a collection document issued in advance by the BNDES for the BENEFICIARY to settle such obligations on their due dates.

 

SOLE PARAGRAPH

 

No failure to receive the collection document shall exempt the BENEFICIARY from its obligation to pay the principal amount installments and charges on the dates set forth in this Agreement.

 

SIX

REPAYMENT

 

The principal amount of the debt arising from this Agreement shall be paid to the BNDES in eighty-four (84) successive monthly installments, each in the principal amount of the debt becoming due, divided by the number of repayment installments not yet due, the first of which shall be due and payable on January fifteen (15), 2021, subject to the provisions of Section Eighteen (Due Dates on Public Holidays), and the BENEFICIARY agrees to settle all obligations arising from this Agreement together with the last installment, on December fifteen (15), 2027.

 

SEVEN

CHANGE IN THE LEGAL STANDARD FOR COMPENSATION OF FUNDS ORIGINATING FROM THE PIS/PASEP FUND AND/OR FROM THE FAT

 

If the legal standard for compensation of the funds transferred to the BNDES and originating from the PIS/PASEP Equity Fund and/or from the Worker Support Fund (FAT) is replaced, the compensations set forth in Sections Three (Interest on Subcredit “A”) and Four (Interest on Subcredit “B”) may, at the discretion of the BNDES, use such new standard for compensation of such funds or any other standard indicated by the BNDES which, in addition to preserving the actual amount of the transaction, compensates at the same levels as before. In this case, the BNDES shall give written notice of such change to the BENEFICIARY.

 

EIGHT

SPECIAL OBLIGATIONS OF THE BENEFICIARY

 

The BENEFICIARY agrees to:

 

I - comply, as applicable, until final settlement of the debt arising from this Agreement, with the “PROVISIONS APPLICABLE TO BNDES CONTRACTS”, approved by Resolution No. 665 of December 10, 1987, as partially amended by Resolution No. 775 of December 16, 1991, by Resolution No. 863 of March 11, 1996, by Resolution No. 878 of September 4, 1996, by Resolution No. 894 of March 6, 1997, by Resolution No. 927 of April 1, 1998, by 

 

 

Resolution No. 976 of September 24, 2001, by Resolution No. 1.571 of March 4, 2008, by Resolution No. 1.832 of September 15, 2009, by Resolution No. 2.078 of March 15, 2011, by Resolution No. 2.139 of August 30, 2011, by Resolution No. 2.181 of November 8, 2011, by Resolution No. 2.556 of December 23, 2013, by Resolution No. 2.558 of December 23, 2013, by Resolution No. 2.607 of April 8, 2014, by Resolution No. 2.616 of May 6, 2014, by Resolution No. 3.148 of May 24, 2017, and by Resolution No. 3.354 of August 28, 2018, all issued by the Executive Board the BNDES and published in the Federal Register (Diário Oficial da União) (Section I) on December 29, 1987, December 27, 1991, April 8, 1996, September 24, 1996, March 19, 1997, April 15, 1998, October 31, 2001, March 25, 2008, November 6, 2009, April 4, 2011, September 13, 2011, November 17, 2011, January 24, 2014, February 14, 2014, May 6, 2014, September 3, 2014, June 2, 2017, and September 17, 2018, respectively, a copy of which is available on the official BNDES’ website (www.bndes.gov.br) and is hereby delivered to the BENEFICIARY, which, having become aware of all the contents thereof, represents that it accepts it as an integral and inseparable part of this Agreement for all legal purposes and effects;

 

II - Execute and complete the project financed hereunder within twenty-four (24) months from the date of issuance of this  Agreement, without prejudice to the BNDES’s option, under the guarantees set forth in this Agreement, to extend such term, before its expiration, or grant an additional term, after said term, upon express authorization by letter, regardless of any other formality or registration;

 

III - Maintain its good standing as to its obligations relating to the project to the environmental agencies during the term of this Agreement;

 

IV- Notify the BNDES, within up to thirty (30) consecutive days as from the date on which it becomes aware of such event, that it or any of its managers; its direct or indirect controlling shareholders; its direct or indirect subsidiaries; its employees, agents or representatives; as well as suppliers of products or services that are essential for performance of the project/transaction are involved in any Brazilian or foreign judicial or administrative action, proceedings and/or lawsuit deemed relevant pursuant to the provisions of Paragraph Three conducted by a Brazilian or foreign administrative or judicial authority, provided they are not subject to confidentiality or under seal;

 

V- Not offer, promise, give, authorize, solicit, or accept, directly or indirectly, any undue monetary or other advantage relating in any way to the purpose of this Agreement and not perform harmful acts, violations or crimes against the economic or tax order, the financial system, the capital market or the Brazilian or foreign public administration, “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law;

 

VI — not perform actions representing discrimination based on race or gender, child labor, slave labor, or which represent moral or sexual harassment, or which involve a crime against the environment;

 

VII- perform all actions within its reach to prevent that its managers of its affiliates; its employees, agents or representatives; as well as suppliers of products or services that are essential for performance of the project/transaction perform the acts described in items IV and V;

 

VIII - Give notice to the BNDES, on the date of the event, of the name and Individual Taxpayers Register of the Ministry of Finance (CPF/MF) number of any person who, whether exercising a salaried position or being among its owners, controlling members, or officers, is certified or takes office as a Federal Deputy or Senator;

 

IX - Not incorporate, directly or indirectly, or acquire an equity interest in companies, within the Country or abroad, without prior express authorization from the BNDES, throughout the term of the Agreement;

 

IX. 1 — The acquisitions referred to in item IX of this Section do not include the following events: (1) whenever the total amount of the acquisition plus the net debt is lower than the EBITDA of the last fiscal year; and (2) whenever the total amount of the acquisition is lower than seven percent (7%) of the Shareholders’ Equity of the last restated audited Financial Statement of the PARENT INTERVENING PARTY;

 

X - Not assume any new loans and financing, directly or indirectly, including by issuance of debentures or loan, before any individuals or legal entities whether or not members of the same business group as the BENEFICIARY, without prior authorization from the BNDES;

 

 

X.1 - The following events are not included in the debts referred to in item X of this Section: (1) financings entered into directly and/or indirectly with the BNDES; (2) transactions carried out to meet ordinary businesses of the BENEFICIARY; and (3) loans and financings the amounts of which do not exceed, per business year, five percent (5%) of the Shareholders’ Equity of the last restated audited annual Financial Statement of the PARENT INTERVENING PARTY;

 

XI - Submit, within one hundred and eighty (180) days from the date of execution of this Agreement, the details of the social project(s) referred to in Section One, Sole Paragraph, item II (Nature, Amount, and Purpose of the Agreement), contemplating the social actions developed by the BENEFICIARY, in terms deemed satisfactory by the BNDES;

 

XII - Not sell or encumber, without prior authorization from the BNDES, any permanent assets the amount of which exceeds ten million Reais (R$10,000,000.00) per annum, except in the case of:

 

a) Unserviceable or obsolete goods; or

 

b) Assets which are replaced by new ones with identical purpose;

 

XIII — not use, during compliance with the purpose described in Section One (Nature, Amount, and Purpose of the Agreement), the funds of this Agreement in activities:

 

a) carried in any country or territory that is subject to economic or financial sanctions, embargoes or restrictive measures in effect, administrated or applied by the United Nations Security Council, by the Brazilian Government or by an authority with jurisdiction on the BENEFICIARY; or

 

b) that otherwise result in a breach by any person (including the BNDES) of the sanctions referred to in this item.

 

XIV - Not create, except upon prior express authorization from the BNDES, security interests of any kind in transactions with other creditors without providing the same type of security to the BNDES under the same conditions and with the same priority, except in the events set forth in item XV of this Section;

 

XV - Give prior formal notice to the BNDES of the creation of any security interest by operation of law or as a bond in connection with any lawsuits and administrative proceedings in which it appears as a defendant, as well as in the event of fiduciary ownership in financings for purchase of equipment;

 

XVI- If the PARENT INTERVENING PARTY fails to achieve the levels set forth in item VII of Section Nine (Obligations of the Parent Intervening Party), to create, within one hundred and twenty (120) days as from the date of the written communication of the BNDES, collateral guarantees, accepted by the BNDES, in an amount corresponding to at least one hundred and thirty percent (130%) of the financing amount or of the debt resulting therefrom, except if the aforementioned levels are reestablished within that term.

 

PARAGRAPH ONE

 

For purposes of the special obligation set forth in item IV of this Section, knowledge of the BENEFICIARY shall be understood as:

 

I — the receipt of judicial or extrajudicial service of process, summons or notice issued by a Brazilian or foreign judicial or administrative authority;

 

II - communication of the fact by the BENEFICIARY to the competent authority; and

 

III — adoption of a judicial or extrajudicial measure by the BENEFICIARY against the wrongdoer.

 

PARAGRAPH TWO

 

For purposes of the special obligation set forth in item IV of this Section, the following shall be deemed relevant:

 

I — all sanctioning administrative proceedings, public-interest civil actions (including of administrative misconduct), citizen suits or class actions, civil or criminal actions relating to the violations set forth below, whenever they are rated as a probable or possible loss:

 

 

a) against the Brazilian or foreign public administration, against the economic or tax order, the financial system, the capital market or “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law;

 

b) acts representing discrimination based on race or gender, child or slave labor, or which represent moral or sexual harassment or crimes against the environment;

 

II — sanctioning administrative proceedings, public-interest civil actions (including of administrative misconduct), citizen suits or class actions, civil or criminal actions that represent a risk to the BENEFICIARY’s reputation, irrespective of the subject matter or of the classification of probability of loss;

 

III — the proceedings or actions against employees, agents or representatives of the BENEFICIARY, in which it may be held liable or which represent a risk to its reputation;

 

IV - the proceedings or actions against suppliers of products or services that are essential for execution of the project and which represent a risk to the BENEFICIARY’s reputation and/or to execution of the project.

 

PARAGRAPH THREE

 

In the events set forth in Paragraph Two of this Section, the BENEFICIARY shall, at the request of the BNDES and whenever available, provide copies of any decisions rendered and of any judicial and extrajudicial settlements executed within the scope of the aforementioned proceedings, as well as detailed information on the measures adopted in response to such proceedings.

 

PARAGRAPH FOUR

 

For purposes of the special obligation set forth in item V of the main provision of this Section, measures to prevent the performance of corrupt practices are understood, among others, as the implementation, maintenance and/or improvement of practices and/or internal control systems, including standards of conduct, integrity policies and procedures, aiming at securing full compliance with the Brazilian and foreign law applicable to the Beneficiary and/or to its affiliates.

 

NINE

OBLIGATIONS OF THE PARENT INTERVENING PARTY

 

The PARENT INTERVENING PARTY LINX S.A., identified in the preamble to this Agreement hereby agrees to:

 

I - Not cause the inclusion in any corporate agreement, bylaws, or articles of association of the BENEFICIARY of any provision that implies:

 

a) Restrictions on the growth capacity or technological development of the BENEFICIARY;

 

b) Restrictions on the access of the BENEFICIARY to new markets; or

 

c) Restrictions on or impairment of its ability to pay the financial obligations under its transactions with the BNDES;

 

II - Not take any actions or measures that impair or alter the economic and financial balance of the BENEFICIARY;

 

III - Take all the necessary measures to ensure the fulfillment of the purpose of this transaction;

 

IV- Notify the BNDES, within up to thirty (30) consecutive days as from the date when it becomes aware of such event, that it or any of its managers; its direct or indirect controlling shareholders; its direct or indirect subsidiaries; or, furthermore, any of the respective managers, employees, agents or representatives of the PARENT INTERVENING PARTY; as well as suppliers of products or services that are essential for performance of the project/transaction are involved in any judicial or administrative action, proceedings and/or lawsuit deemed relevant pursuant to the provisions of Paragraph Three, conducted by a Brazilian or foreign administrative or judicial authority, provided they are not subject to confidentiality or under seal, and it may, at the request of the BNDES and whenever available, provide copies of any decisions rendered and of any judicial or extrajudicial settlements executed within the scope of the aforementioned proceedings, as well as detailed information on the actions performed in response to these proceedings;

 

 

V- Not offer, promise, give, authorize, solicit, or accept, directly or indirectly, any undue monetary or other advantage relating in any way to the purpose of this Agreement and not perform harmful acts, violations or crimes against the economic* or tax order, the financial system, the capital market or the Brazilian or foreign public administration, “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law, and take all measures within its reach to prevent its and its affiliates’’ managers, employees, agents, representatives from doing any of the above;

 

VI - Submit to the BNDES, within the term of the Agreement, within one hundred and eighty (180) days after the end of the first and of the second half-year period of each fiscal year, for purposes of proving compliance with the obligation set forth in item VII of this Section, consolidated annual financial statements covering its individual results and the results of all its subsidiaries headquartered within the national territory, together with the respective opinions prepared by an independent audit firm registered with the Brazilian Securities Commission (CVM);

 

VII — maintain, during effectiveness of this Agreement, the following financial indices, subject to the provisions of Paragraph Four of this Section, the ascertainment of which shall be made every half-year period based on its consolidated financial statements:

 

a) General Indebtedness/ Total Assets: equal to or lower than 0.60; and

 

b) Net Debt/EBITDA: equal to or lower than 2.00.

 

PARAGRAPH ONE

 

For purposes of the special obligation set forth in item V, measures to prevent the performance of corrupt practices are understood, among others, as the implementation, maintenance and/or improvement of practices and/or internal control systems, including standards of conduct, integrity policies and procedures, aiming at securing full compliance with the Brazilian and foreign law applicable to the PARENT INTERVENING PARTY and/or to its affiliates.

 

PARAGRAPH TWO

 

For purposes of the special obligation set forth in item IV of this Section, knowledge of the PARENT INTERVENING PARTY shall be understood as:

 

I - the receipt of judicial or extrajudicial service of process, summons or notice issued by a Brazilian or foreign judicial or administrative authority;

 

II- communication of the fact by the PARENT INTERVENING PARTY to the competent authority; and

 

III - adoption of a judicial or extrajudicial measure by the PARENT INTERVENING PARTY against the wrongdoer.

 

PARAGRAPH THREE

 

For purposes of the special obligation set forth in item IV of this Section, the following shall be deemed relevant:

 

I - all sanctioning administrative proceedings, public-interest civil actions (including of administrative misconduct), citizen suits or class actions, civil or criminal actions relating to the violations set forth below, whenever they are rated as a probable or possible loss:

 

a) against the Brazilian or foreign public administration, against the economic or tax order, the financial system, the capital market or “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law;

 

b) acts representing discrimination based on race or gender, child or slave labor, or which represent moral or sexual harassment or crimes against the environment;

 

II — all sanctioning administrative proceedings, public-interest civil actions (including of administrative misconduct), citizen suits or class actions, civil or criminal actions that represent a risk to the PARENT INTERVENING PARTY’s reputation, irrespective of the subject matter or of the classification of probability of loss;

 

III - the proceedings or actions against employees, agents or representatives of the PARENT INTERVENING PARTY, in which it may be held liable or which represent a risk to its reputation; and

 

 

IV - the proceedings or actions against suppliers of products or services that are essential for execution of the project and which represent a risk to the PARENT INTERVENING PARTY’s reputation and/or to execution of the project.

 

PARAGRAPH FOUR

 

For purposes of this Agreement, the terms mentioned in item VII of this Section have the following meaning:

 

I — General Indebtedness: Sum of the Current Liabilities and Non-Current Liabilities.

 

II - Net Debt: Sum of the balance of the consolidated onerous debts of the INTERVENING PARTY, including: loans and financing: loans; issuance of fixed-income bonds, promissory notes and debentures, whether convertible or not, in the local or international capital market; as well as the sale or assignment of future receivables, in case they are accounted for as obligations; and other indebtedness financial transactions of the company, recorded in the current and non-current liabilities, less Cash (cash and financial investments);

 

III -EBITDA: Operating Income before interest, income tax, depreciation, and amortization.

 

TEN

LIABILITY IN CORPORATE SUCCESSION

 

In the event of corporate succession, any successors of the Beneficiary shall be jointly and severally liable for the obligations arising from this Agreement.

 

SOLE PARAGRAPH

 

The main provision of this Section shall not apply in the event of prior consent from the BNDES to the waiver of joint and several liability in a partial spin-off.

 

ELEVEN

MUTUAL POWER OF ATTORNEY

 

The BENEFICIARY and the INTERVENING PARTY hereby irrevocably and irreversibly mutually appoint each other their attorneys-in-fact until the final settlement of the debt hereunder, with powers to receive service of process, notices, and summons, as well as with general judicial powers, which may be delegated to counsel, all in connection with any judicial or extrajudicial proceedings that are filed against them by the BNDES as a result of this Agreement, it being understood that they may take all actions necessary for a good and faithful performance of this power of attorney.

 

TWELVE

CONDITIONS FOR RELEASE OF THE FINANCIAL COOPERATION

 

In addition to compliance, as appropriate, with the conditions set forth in articles 5 and 6 of the abovementioned “PROVISIONS APPLICABLE TO BNDES CONTRACTS” and in the “MONITORING RULES AND INSTRUCTIONS” referred to in article 2 of such “PROVISIONS,” the release of the financial cooperation shall be subject to the following:

 

I - For release of each credit installment:

 

a) No occurrence of any fact that, at the discretion of the BNDES, may substantially alter the economic and financial status of the BENEFICIARY or impair the execution of the project financed hereunder by altering it or preventing its completion in accordance with the terms of the project approved by the BNDES;

 

b) Submission by the BENEFICIARY of a Certificate of No Outstanding Federal Tax Liability (CND) or of a Certificate of Suspended Federal Tax Liability (CPEND) issued jointly by the Brazilian Federal Revenue Service (RFB) and by the Office of the General Counsel for the National Treasury (PGFN) via INTERNET, to be obtained by the BENEFICIARY at www.receita.fazenda.gov.br or www.pgfn.fazenda.gov.br and checked by the BNDES on the same websites;

 

c) Proof of good standing with environmental agencies or, if such proof has already been submitted and is in force, a statement from the BENEFICIARY of the continued validity of such document;

 

 

d) presentation of a statement, signed by the legal representative(s) of the BENEFICIARY, reiterating the representations provided in Section Twenty-Three (Representations of the Beneficiary);

 

THIRTEEN

NOTICE

 

In the event it detects the occurrence of an event that could represent noncompliance with an obligation set forth in this Agreement, in relation to which there is no term established for compliance, the BNDES shall give written notice to the BENEFICIARY and/or to the PARENT INTERVENING PARTY, granting them a term of up to thirty (30) days as from the date of receipt of the notice to present a proof of correction and/or justification about said event.

 

PARAGRAPH ONE

 

The BNDES may, at its discretion and without prejudice to other measures and penalties set forth in this Agreement and in the “PROVISIONS APPLICABLE TO BNDES CONTRACTS”:

 

I — accept the proof of correction and/or justification presented and give written notice thereof to the BENEFICIARY and/or to the PARENT INTERVENING PARTY;

 

II — suspend the release of the financial cooperation; and/or

 

III — declare the acceleration of the Agreement, pursuant to the provisions of Section Seventeen (Acceleration), and, furthermore, in case the purpose set forth in Section (Nature, Amount, and Purpose of the Agreement) has been jeopardized, apply the provisions of Paragraph One of Section Seventeen (Acceleration).

 

PARAGRAPH TWO

 

At the discretion of the BNDES, the measure set forth in item II of Paragraph One of this Section may be determined before the notice is delivered to the BENEFICIARY.

 

FOURTEEN

GUARANTEE

 

The PARENT INTERVENING PARTY LINX S.A., identified in the preamble, accepts this Agreement in the capacity of guarantor and principal payor and expressly waives the benefits of articles 366, 827, and 838 of the Civil Code, it being understood that it shall be jointly and severally liable, until the final settlement of this Agreement, for the faithful and exact performance of all the obligations assumed by the BENEFICIARY hereunder.

 

FIFTEEN

DEFAULT

 

In the event of default of the obligations assumed by the BENEFICIARY and by the PARENT INTERVENING PARTY, the provisions of arts. 40-47-A of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section Eight (Special Obligations of the Beneficiary), item I shall apply.

 

SIXTEEN

EARLY SETTLEMENT OF THE DEBT

 

In the event of early settlement of the debt, the guarantees shall be released, subject to the provisions of article 18, paragraph two, of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” mentioned in Section Eight (Special Obligations of the Beneficiary), item I.

 

SEVENTEEN

ACCELERATION

 

The BNDES may accelerate this Agreement, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, if, in addition to the events mentioned in articles 39 and 40 of the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section Eight (Special Obligations of the Beneficiary), item I, the BNDES can demonstrate:

 

 

a) The existence of a final and unappealable adverse judgment resulting from any actions taken by the Beneficiary which imply child labor, slave labor, or environmental crime;

 

b) the untruth of the representations provided in Section Twenty-Three (Representations of the Beneficiary);

 

c) The inclusion in a corporate agreement, bylaws, or articles of association of the BENEFICIARY or of any of its controlling companies of any provision that implies restrictions on or an impairment of its ability to pay its financial obligations arising from this transaction;

 

d) court-supervised or out-of-court reorganization petition, or petition for voluntary bankruptcy filed by the BENEFICIARY or its controlling shareholder(s), or adjudication of bankruptcy of the BENEFICIARY or its controlling shareholder(s);

 

e) consolidation, spin-off, dissolution, merger (in the capacity as surviving company or absorbed company), conversion, capital reduction with reimbursement of capital or going-private process, or change in the actual direct or indirect control of the BENEFICIARY or of its successors, during effectiveness of this Agreement, without the prior and express consent of the BNDES.

 

PARAGRAPH ONE

 

This Agreement shall be accelerated, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, in the event of application of the proceeds from this Agreement to any purpose other than that provided for in Section One (Nature, Amount, and Purpose of the Agreement). The BNDES shall give notice of such fact to the Federal Public Prosecutors’ Office for the purposes and effects of Law No. 7.492 of June 16, 1986.

 

PARAGRAPH TWO

 

This Agreement shall also be accelerated, upon which the debt shall become enforceable and any disbursements shall be immediately suspended, on the date when any person who exercises a salaried position at the BENEFICIARY or is among its owners, controlling members, or officers is certified or takes office as a Federal Deputy or Senator, as such persons are subject to the prohibitions set forth in article 54, items I and II of the Federal Constitution. No default charges shall be imposed if the payment occurs within five (5) business days from the date of such certification, under penalty of otherwise the charges established for events of acceleration due to default being imposed.

 

PARAGRAPH THREE

 

No acceleration based on the provisions of clause “a” shall occur if the remediation imposed is complied with or as long as the sentence imposed on the Beneficiary is being served, subject to the due process of law.

 

EIGHTEEN

DUE DATES ON PUBLIC HOLIDAYS

 

The due dates of all principal and charges repayment installments which fall on Saturdays, Sundays, or national, state, district, or municipal public holidays, including banking holidays, shall be, for all purposes and effects of this Agreement, postponed to the first subsequent business day, in which case the charges shall be calculated up to such date, and the following regular period for determination and calculation of the charges under this Agreement shall also start on such date.

 

SOLE PARAGRAPH

 

Unless otherwise expressly provided, the public holidays in the place where the principal place of business of the BENEFICIARY is located, the address of which is indicated in this Agreement, shall be considered for the purposes of the main provision of this Section.

 

NINETEEN

FINANCIAL COOPERATION COMMISSION

 

The BENEFICIARY shall pay to the BNDES a Financial Cooperation Commission in the amount of six hundred and sixty-two thousand, nine hundred and sixty-five Reais and forty cents (R$662,965.40).

 

 

PARAGRAPH ONE

 

The BENEFICIARY authorizes the BNDES to deduct from the first installment of the credit, upon release thereof, the amount of six hundred and sixty-two thousand, nine hundred and sixty-five Reais and forty cents (R$662,965.40), relating to the Financial Cooperation Commission.

 

PARAGRAPH TWO

 

If the first release does not occur, or if the amount mentioned in Paragraph One of this Section is not deducted from the first credit release, the BENEFICIARY agrees to pay it to the BNDES within forty-five (45) days to from the date on which it is notified to do so.

 

PARAGRAPH THREE

 

If the Financial Cooperation Commission is not paid as provided for in this Section, the BENEFICIARY shall be subject to the sanctions set forth in this Agreement and in the “PROVISIONS APPLICABLE TO BNDES CONTRACTS” referred to in Section 8 (Special Obligations of the Beneficiary) of this Agreement.

 

TWENTY

COMMISSIONS AND CHARGES

 

The BENEFICIARY acknowledges that it shall pay Commissions and Charges to the BNDES in view of the request for services or other activities, subject to the events of application and to the amounts disclosed by the BNDES on the website www.bndes.gov.br.

 

TWENTY-ONE

JURISDICTION

 

The courts of Rio de Janeiro and the courts sitting in the place where the headquarters of the BNDES are located are hereby elected as the Courts of competent jurisdiction for any disputes arising from this Agreement which cannot be resolved out of court.

 

TWENTY-TWO

ENVIRONMENTAL LIABILITY

 

The BENEFICIARY agrees, regardless of fault, to reimburse the BNDES for any amount that it is compelled to pay due to any environmental damage arising from the project referred to in Section One (Nature, Amount, and Purpose of the Agreement), as well as to indemnify the BNDES for any losses or damages it may suffer as a result of such environmental damage.

 

TWENTY-THREE

REPRESENTATIONS OF THE BENEFICIARY

 

The BENEFICIARY hereby represents and warrants to the BNDES that:

 

I — In relation to the legitimacy to execute agreements:

 

a) it has full power, authority and capacity to execute this Agreement and comply with the obligations assumed by it hereunder, having performed all corporate actions required to authorize the respective execution;

 

b) there is no Federal Deputy or Senator who has been certified or taken office who exercise a remunerated duty or is one of its owners, controlling shareholders or officers, and the prohibitions set forth in the Brazilian Federal Constitution, article 54, items I and II have not been characterized;

 

II — In relation to the loyal practices:

 

a) it is compliant with the anticorruption laws, regulations and policies, as well as with the determinations and rules issued by any Brazilian or foreign body or entity to which it is subject due to a statutory or contractual obligation, the purpose of which is to inhibit or prevent corrupt practices, unlawful expenses relating to political activity, harmful acts, violations or crimes against the economic or tax order, the financial system, the capital market or the Brazilian or

 

 

foreign public administration, “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law;

 

b) it has no knowledge that suppliers of products or services that are essential for execution of the project/transaction have performed any act relating thereto that breaches any of the rules mentioned in letter “a” of this item;

 

c) neither the Beneficiary nor its direct or indirect affiliates or, furthermore, any of the respective managers, employees, agents and representatives are Sanctioned Persons;

 

d) neither the Beneficiary nor its direct or indirect affiliates are organized, domiciled or located in a Sanctioned Country;

 

e) neither the Beneficiary nor its direct or indirect affiliates are or wish to be a party to any negotiations or transactions with any Sanctioned Person or relating to any blocked activity or transaction in a Sanctioned Country;

 

III — In relation to the social and environmental aspects:

 

a) it complies with the statutory provisions relating to the National Environmental Policy and adopts measures and actions designed to avoid or correct damage or violations of the environment, occupational safety and health that may result from the project set forth in Section One (Nature, Amount, and Purpose of the Agreement);

 

b) it is in regular standing with the environmental bodies, and all licenses, authorizations, grants and similar instruments currently required for the project set forth in Section One (Nature, Amount, and Purpose of the Agreement) presented to BNDES remain valid;

 

c) it is compliant with the law applicable to persons with deficiency in the execution of the project set forth in Section One (Nature, Amount, and Purpose of the Agreement), especially the requirements set forth in Law No. 13.146, of July 6, 2015 (Statute of Persons with Deficiency);

 

d) the project set forth in Section One (Nature, Amount, and Purpose of the Agreement) does not contemplate a reduction in the permanent personnel of the BENEFICIARY;

 

IV — In relation to the tax aspects:

 

a) it is compliant with the tax obligations, including social, labor and social-security contributions;

 

PARAGRAPH ONE

 

The BENEFICIARY is aware that the inaccuracy of the representations provided in the main provision of this Section may result in application of the applicable legal sanctions, in addition to the acceleration of the Agreement.

 

PARAGRAPH TWO

 

The BENEFICIARY shall, whenever it requests the release of an installment of the financial cooperation or at the request of the BNDES, within up to 30 days as from the date of receipt of the notice, expressly reiterate the representations provided in this Section, informing any relevant change of fact that causes the representation to no longer be true, consistent, correct or sufficient, until final settlement of all obligations under this Agreement.

 

PARAGRAPH THREE

 

For purposes of item II of the main provision of this Section, the following definitions are adopted:

 

I — Sanctioned Country: any country or territory that is or the government of which is subject to Sanctions;

 

II — Sanctioned Person: any individual or legal entity, authority or governmental body the transactions with which are restricted or prohibited by the Sanctions;

 

III - Sanctions: economic or financial sanctions, embargoes and restrictive measures in effect, whether administrated or applied by the by the United Nations Security Council, by the Brazilian Government or by an authority with jurisdiction on the BENEFICIARY, its affiliates, or any of their respective managers, employees, agents and representatives, in view of their domicile or commercial activities.

 

 

TWENTY-FOUR

REPRESENTATIONS OF THE PARENT INTERVENING PARTY

 

The PARENT INTERVENING PARTY hereby represents and warrants to the BNDES that:

 

I - In relation to the legitimacy to be an intervening party to the agreement:

 

a) it has full power, authority and capacity to be an intervening party to this Agreement and comply with the obligations assumed by it hereunder, having performed all corporate actions required to authorize the respective execution hereof in the capacity as intervening party;

 

II - In relation to the loyal practices:

 

a) it is compliant with the anticorruption laws, regulations and policies, as well as with the determinations and rules issued by any Brazilian or foreign body or entity to which it is subject due to a statutory or contractual obligation, the purpose of which is to inhibit or prevent corrupt practices, unlawful expenses relating to political activity, harmful acts, violations or crimes against the economic or tax order, the financial system, the capital market or the Brazilian or foreign public administration, “laundering” or concealment of assets, rights and amounts, terrorism or terrorism financing, set forth in the applicable Brazilian and/or foreign law;

 

b) neither the PARENT INTERVENING PARTY nor its direct or indirect affiliates or, furthermore, any of the respective managers, employees, agents and representatives are Sanctioned Persons;

 

c) neither the PARENT INTERVENING PARTY nor its direct or indirect affiliates are organized, domiciled or located in a Sanctioned Country;

 

d) neither the PARENT INTERVENING PARTY nor its direct or indirect affiliates are or wish to be a party to any negotiations or transactions with any Sanctioned Person or relating to any blocked activity or transaction in a Sanctioned Country;

 

e) it has no knowledge of any fact that has not been expressly declared and that, if known, could adversely affect the decision to grant the financing.

 

III - In relation to the tax aspects:

 

a) it is compliant with the social-security and social contribution obligations;

 

PARAGRAPH ONE

 

The PARENT INTERVENING PARTY is aware that the inaccuracy of the representations provided in the main provision of this Section may result in application of the applicable legal sanctions, in addition to the acceleration of the Agreement.

 

PARAGRAPH TWO

 

The PARENT INTERVENING PARTY shall, at the request of the BNDES, within up to 30 days as from the date of receipt of the notice, expressly reiterate the representations provided in this Section, informing any relevant change of fact that causes the representation to no longer be true, consistent, or correct, until final settlement of all obligations under this Agreement.

 

PARAGRAPH THREE

 

For purposes of item II of the main provision of this Section, the following definitions are adopted:

 

I - Sanctioned Country: any country or territory that is or the government of which is subject to Sanctions;

 

II - Sanctioned Person: any individual or legal entity, authority or governmental body the transactions with which are restricted or prohibited by the Sanctions;

 

III - Sanctions: economic or financial sanctions, embargoes and restrictive measures in effect, whether administrated or applied by the by the United Nations Security Council, by the Brazilian Government or by an authority with jurisdiction on the PARENT INTERVENING PARTY, its affiliates, or any of their respective managers, employees, agents and representatives, in view of their domicile or commercial activities.

 

 

TWENTY-FIVE

PUBLICITY

 

The BENEFICIARY and the PARENT INTERVENING PARTY authorize the external disclosure of the full contents of this Agreement by the BNDES, irrespective of the public registration hereof with the registry office.

 

TWENTY-SIX

TRANSFER OF CONFIDENTIALITY

 

The BENEFICIARY and the PARENT INTERVENING PARTY represent to be aware that the BNDES will provide to the Federal Accounting Court (TCU), to the Federal Public Prosecutors’ Office (MPF) and to the Ministry of Transparency, Inspection and Control the information requested by them, with transfer of the duty of confidentiality.

 

TWENTY-SEVEN

COMMUNICATIONS

 

All communications resulting from this Agreement shall be made in writing and sent personally, by mail or by electronic message (e-mail) to the following addresses or to any other address informed by the BNDES or by the BENEFICIARY and the PARENT INTERVENING PARTY:

 

BNDES:

 

Av. República do Chile, No. 100, Centro

 

Rio de Janeiro - RJ

 

Postal Code: 20.031-917

 

Phone: (21) 2052-6665

 

E-mail: rivera@bndes.gov.br

 

Attn.: Head of the Information and Information Technology Department

 

BENEFICIARY:

 

Avenida das Nações Unidas, No. 7221, 4o, 5o, 6o, 7o e 14o andares, Edifício Birmann 21,

 

Pinheiros

 

São Paulo - SP

 

Postal Code: 05425-902

 

Phone:(11) 961728289

 

E-mail: pedro.moreira@linx.com.br

 

Attn.: Mr. Pedro Holmes Monteiro Moreira

 

PARENT INTERVENING PARTY:

 

Avenida das Nações Unidas, No. 7221, 7o andar, Sala 01, Edifício Birmann 21, Pinheiros

 

São Paulo - SP

 

Postal Code: 05425-902

 

Phone: (11) 961728289

 

E-mail: pedro.moreira@linx.com.br

 

Attn.: Mr. Pedro Holmes Monteiro Moreira

 

 

SOLE PARAGRAPH

 

Any communication pursuant to the provisions of this Agreement shall be valid and deemed delivered on the date of receipt, as proven by means of a receipt singed by the party to which it is delivered; in case it is sent by mail, upon return receipt; or, in case of transmission by electronic message (e-mail), on the date on which the correspondence is sent, in case it is sent until the end of the business hours of the addressee and, in case it is sent afterwards, on the following business day.

 

The BENEFICIARY LINX SISTEMAS E CONSULTORIA LTDA. has submitted a Certificate of Suspended Federal Tax Liability (CPEND) No. 5CF5.98C7.E437.7176 issued jointly by the Brazilian Federal Revenue Service and by the Office of the General Counsel for the National Treasury on October 15, 2018.

 

The PARENT INTERVENING PARTY has submitted a Certificate of No Outstanding Federal Tax Liability (CND) No. 9050.26AB.E3A2.AC76 issued jointly by the Brazilian Federal Revenue Service and by the Office of the General Counsel for the National Treasury on September 27, 2018.

 

The pages of this Instrument are initialed by Ana Gabriela Salcedo Teixeira Mendes, counsel for the BNDES, upon authorization from the undersigned legal representatives.

 

In witness whereof, the parties executed this instrument in three (3) identical counterparts, in the presence of the undersigned witnesses.

 

 

Rio de Janeiro, November 30, 2018

 

(SIGNATURE PAGE OF THE CREDIT FACILITY FINANCING AGREEMENT No. 18.2.0547.1 ENTERED INTO BY AND BETWEEN THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT - BNDES AND LINX SISTEMAS E CONSULTORIA LTDA., WITH INTERVENING THIRD PARTY)

 

For the BNDES:

 

	
/s/ Julio Ramundo
    	
 
    	
/s/ Ricardo Rivera
    

 

	
BANCO NACIONAL DE DESENVOLVIMENTO ECONÔMICO E SOCIAL - BNDES
    

 

	
Julio Ramundo
    	
 
    	
Ricardo Rivera
    
	
Superintendent
    	
 
    	
Head of Department
    
	
Industry and Services Area
    	
 
    	
AI/DETIC
    

 

For the BENEFICIARY

 

	
/s/ Alberto Menache
    	
 
    	
/s/ Holmes Monteiro Moreira
    

 

LINX SISTEMAS E CONSULTORIA LTDA.

 

For the PARENT INTERVENING PARTY:

 

	
/s/ Alberto Menache
    	
 
    	
/s/ Holmes Monteiro Moreira
    

 

LINX S.A.

 

WITNESSES

 

	
/s/ Ana Paula Frigo
    	
 
    	
/s/ Tatiana Bacelar   Maldonado Torres
    
	
Name: Ana Paula Frigo
    	
 
    	
Name: Tatiana Bacelar Maldonado Torres
    
	
Identity No.: 28.733.692-X
    	
 
    	
Identity No.: 1003777 53
    
	
Individual Taxpayers Register (CPF) No.: 281.772.648-00
    	
 
    	
Individual Taxpayers Register (CPF) No.: 042957797-27

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