CONFIDENTIAL CONNECTING BRITISH COLUMBIA AGREEMENT between TELUS COMMUNICATIONS COMPANY and HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, as represented by the Minister of Labour, Citizens’ Services and Open Government as of July 29, 2011 Connecting BC Agreement CONFIDENTIAL TABLE OF CONTENTS ARTICLE 1 INTERPRETATION...............................................................................................2 1.1 Definitions................................................................................................................2 1.2 Recitals.....................................................................................................................2 1.3 Headings ..................................................................................................................2 1.4 Interpretation............................................................................................................2 1.5 Accounting Policy....................................................................................................3 1.6 Calculation of Time Periods ....................................................................................3 1.7 Currency References................................................................................................3 1.8 Time .........................................................................................................................3 1.9 Schedules .................................................................................................................3 1.10 Conflict Between Documents ..................................................................................4 1.11 Objectives and Guiding Principles of the Parties ....................................................4 1.12 Province Acting Reasonably....................................................................................5 ARTICLE 2 TERM OF AGREEMENT......................................................................................6 2.1 Term.........................................................................................................................6 2.2 Extension of the Term..............................................................................................6 ARTICLE 3 CONSIDERATION .................................................................................................6 3.1 Consideration ...........................................................................................................6 ARTICLE 4 CO LIVE STATUS..................................................................................................6 4.1 Maintaining CO Live Status ....................................................................................6 4.2 Failure to Achieve and Maintain CO Live Status....................................................7 4.3 TELUS Turn Down Option .....................................................................................7 4.4 Re-Establishing CO Live Status ..............................................................................7 4.5 TELUS Initiated Construction .................................................................................8 4.6 CO Live Status Disputes and Release......................................................................8 4.7 Technology Refresh.................................................................................................9 4.8 Exclusion of Warranties...........................................................................................9 ARTICLE 5 CARRIER SERVICES............................................................................................9 5.1 Carrier Services General..........................................................................................9 5.2 Eligible ISPs.............................................................................................................9 5.3 Availability of Carrier Services .............................................................................10 5.4 TELUS 30 Mbps Carrier Services .........................................................................10 5.5 TELUS 100 Mbps Carrier Services .......................................................................11 5.6 Upgrades from E6 Carrier Services .......................................................................12 5.7 Non-Compete.........................................................................................................12 5.8 Duration of Non-Compete .....................................................................................12 5.9 Charges for Carrier Services..................................................................................13 Connecting BC Agreement i CONFIDENTIAL 5.10 Connection Costs Paid by TELUS.........................................................................14 5.11 Support Structures..................................................................................................14 5.12 Assistance to ISPs..................................................................................................14 5.13 TELUS Ambassador..............................................................................................14 5.14 TELUS Ambassador Duties...................................................................................15 ARTICLE 6 CELLULAR EXPANSION...................................................................................15 6.1 Cellular Coverage..................................................................................................15 6.2 Cellular Build.........................................................................................................16 6.3 Maintaining Cellular Facilities ..............................................................................17 6.4 Underlying Rights and Regulatory Approvals related to Cellular Build Target ...17 6.5 Cellular Build Consultations..................................................................................17 6.6 Cellular Build Remedies:.......................................................................................18 ARTICLE 7 UNDERLYING RIGHTS .....................................................................................19 7.1 Underlying Rights..................................................................................................19 7.2 At Risk Underlying Rights.....................................................................................19 7.3 Right to Contest Underlying Rights.......................................................................20 7.4 Additional Province Assistance .............................................................................20 7.5 Failure to Provide Assistance.................................................................................21 ARTICLE 8 CITIZENS CONNECTIVITY PROGRAM .......................................................21 8.1 Connecting BC Target...........................................................................................21 8.2 Connecting BC Target Defined .............................................................................21 8.3 Connecting Target Consultations...........................................................................22 8.4 Release ...................................................................................................................22 8.5 BC Connectivity Conferences................................................................................22 ARTICLE 9 CHANGES..............................................................................................................22 9.1 Changes..................................................................................................................22 9.2 Effect of Changes...................................................................................................23 ARTICLE 10 GENERAL MANAGEMENT OF RELATIONSHIP ......................................23 10.1 Governance ............................................................................................................23 ARTICLE 11 RELATIONSHIP.................................................................................................23 11.1 TELUS Not an Agent.............................................................................................23 11.2 Cooperation............................................................................................................24 11.3 Province Approval.................................................................................................24 11.4 Approval and Response Time................................................................................24 11.5 Conflict of Interest .................................................................................................24 11.6 No Guarantee of Volumes .....................................................................................25 Connecting BC Agreement ii CONFIDENTIAL ARTICLE 12 TELUS DUTIES AND OBLIGATIONS ...........................................................26 12.1 General Duties and Obligations of TELUS ...........................................................26 12.2 Compliance with Applicable Laws........................................................................26 12.3 Obtaining and Maintaining Licenses and Permits .................................................26 ARTICLE 13 PERSONNEL, EXTERNAL PERSONNEL AND SUBCONTRACTORS....26 13.1 TELUS Personnel – General..................................................................................26