In this task, you're given a passage that represents a legal contract or clause between multiple parties. Your job is to write questions that ask the basic details corresponding to the legal contracts or clauses. Avoid questions that can be answered correctly without actually understanding the paragraph, and which might have multiple answers. The answer to each question should be unambiguous.

Exhibit 10.24

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OPERATION AND MAINTENANCE AGREEMENT

Dated as of November 3, 2010

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TABLE OF CONTENTS Page

ARTICLE I : DEFINITIONS1

ARTICLE II : ENGAGEMENT OF OPERATOR5 2.1 Engagement..    5 2.2 Independent Contractor.    5 2.3 Owner Cooperation    5

ARTICLE III : TERM, RESIGNATION OR REMOVAL OF OPERATOR5 3.1 Term.    5 3.2 Owner Default.    5 3.3 Operator Default    6 3.4 Cooperation with Owner or Successor Operator    7 3.5 Effect of Termination    7

ARTICLE IV : DUTIES AS OPERATOR7 4.1 Duties as Operator.    7 4.2 Standard of Care..    11 4.4 Limitation of Authority    12

ARTICLE V : ACCOUNTING, REPORTS, RECORDS12 5.1 Accounting Methods.    12 5.2 Independent Audit.    12

ARTICLE VI : FORCE MAJEURE12 6.1 Procedure..    12





6.2 Strikes.    13

ARTICLE VII : INSURANCE AND INDEMNIFICATION13 7.1 Operator Insurance.    13 7.2 Contractors    14 7.3 Notice of Claims..    14 7.4 Mutual Release and Indemnification.    14

ARTICLE VIII : GENERAL PROVISIONS15 8.2 Notices    15 8.3 Rights    16 8.4 Applicable Laws    16 8.5 Rules of Construction.    16 8.6 Governing Law..    17 8.7 Dispute Resolution.    17 8.8 Limitation of Liability..    17 8.9 Entirety of Agreement, Amendments    17 8.10 Waivers.    18 8.11 Headings.    18 8.12 Rights and Remedies.    18 8.13 Assignment    18 8.14 Counterparts    18 8.15 No Third Party Beneficiary    18 8.16 Further Assurances.    28

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OPERATION AND MAINTENANCE AGREEMENT      This OPERATIONS AND MAINTENANCE AGREEMENT dated this  3rd day of November, 2010 (the Effective Date), is made and entered into by and between MAGELLAN TERMINALS HOLDINGS, L.P. (f/k/a Marrero Terminal, LLC), a Delaware limited partnership (Owner), and OMEGA REFINING, LLC, a Delaware limited liability company (Omega or Operator). Owner and Operator are referred to individually herein as a Party and collectively herein as the Parties.

WITNESSETH:

WHEREAS, Owner currently operates that certain six spot rail car loading/offloading area located at 5000 River Road, Marrero, Louisiana, including associated piping, hoses, and pumps as more particularly described on Exhibit A attached hereto and incorporated by reference herein (the Rail Facility); and

WHEREAS, Owner wishes to retain Operator to maintain and operate the Rail Facility as well as administering the business and regulatory affairs of Owner relating to the Rail Facility, all in accordance with the terms and conditions set forth below.

  NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I : DEFINITIONS

Capitalized terms used in this Agreement but not otherwise defined herein shall have the following meanings:

Affiliate means, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common control with, such specified Person through one or more intermediaries or otherwise. For the purposes of this definition, control means, where used with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Securities or interests, by contract or otherwise, and the terms controlling and controlled have correlative meanings.

Agreement means this Amended and Restated Operations and Maintenance Agreement (including all exhibits), as amended from time to time in accordance with the terms hereof.

Business Day means any calendar day, other than a Saturday or Sunday, on which commercial banks in New Orleans, Louisiana are open for business.

Calendar Year means the time period from January 1 through December 31 of the same calendar year.

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Capital Project means any capital expenditure to repair, maintain, construct, expand, or modify the Rail Facility.

Capital Project Proposal shall have the meaning set forth in Section 4.1.11.

Claim means any lawsuit, claim, proceeding, investigation, review, audit or other cause of action of any kind.

Constituent of Concern means any substance defined as a hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, pollutant or contaminant by an Environmental Law.

Effective Date shall have the meaning set forth in the preamble to this Agreement.

Emergency means a sudden or unexpected event that causes, or risks causing, imminent material damage to the Rail Facility, death or injury to any Person, or material damage to property or the environment.

Emergency Work shall have the meaning set forth in Section 4.1.12.

Environmental Law means all applicable Laws and Environmental Permits of any Governmental Authority relating to the environment, natural resources, or the protection thereof, including, without limitation: (a) all requirements pertaining to liability for reporting, management, licensing, permitting, investigation, and remediation of emissions, discharges, releases, or threatened releases of a Constituent of Concern; and (b) CERCLA, the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq. the Federal Clean Water Act, the Federal Clean Air Act, the Federal Solid Waste Disposal Act (which includes the Resource Conservation and Recovery Act), the Federal Toxic Substances Control Act, and the Federal Insecticide, Fungicide and Rodenticide Act, the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq., and the Safe Drinking Water Act, 42 U.S.C. § 300f et seq. and any applicable Law relating to health, safety, the environment, natural resources or the protection thereof, each as amended from time to time, including any regulations promulgated pursuant thereto, and any state or local counterparts.   Environmental Permits all permits, licenses, registrations, authorizations, certificates and approvals, and any other similar items, of Governmental Authorities required by Environmental Laws and necessary for or held in connection with the ownership and/or operation of the Rail Facility or any of the transactions contemplated hereby.

Force Majeure means any cause or causes not reasonably within the control of the Party claiming suspension and which, by the exercise of reasonable diligence, such Party is unable to prevent or overcome, including, without limitation, acts of God, acts, omissions to act, and/or delays in action of federal, state, or local government or any agency thereof, strikes, lockouts, work stoppages, or other industrial disturbances, acts of a public enemy, sabotage, wars, blockades, insurrections, riots, acts of terror, epidemics, landslides, lightning, earthquakes, fires, storms, storm warnings, floods, washouts, extreme cold or freezing weather, arrests and restraints of governments

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and people, civil or criminal disturbances, interruptions by governmental or court orders, present and future valid orders of any regulatory body having jurisdiction, explosions, mechanical failures, breakage, or accident to equipment installations, machinery, compressors, or lines of pipe, and associated repairs, freezing of wells or lines of pipe, partial or entire failure of wells, pipes, facilities, or equipment, electric power unavailability or shortages, failure of pipelines or carriers to transport, partial or entire failure or refusal of operators of upstream or downstream pipelines or facilities to receive used motor oil, governmental regulations, and inability to obtain or timely obtain, or obtain at a reasonable cost, after exercise of reasonable diligence, pipe, materials, equipment, rights-of-way, servitudes, governmental approvals, or labor, including those necessary for the facilities provided for in this Agreement.

GAAP means generally accepted accounting principles, consistently applied.

Governmental Authority means any federal, state, municipal, local or similar governmental authority, regulatory or administrative agency, court or arbitral body with jurisdiction over the Parties, this Agreement, any of the transactions contemplated hereby or the Rail Facility.

Hazardous Materials means any materials, including without limitation chemicals and wastes that are regulated under Environmental Law.   Law means any statute, writ, law, common law, rule, regulation, ordinance, order, judgment, injunction, award, determination or decree of a Governmental Authority, or any requirement under the common law.

Lease shall mean that certain Land Lease dated as of April 30, 2008, pursuant to which Operator leased certain property from Owner's predecessor in interest, as described therein, as amended by that certain First Amendment to Land Lease dated as of October 29, 2009.

Liability Claim means a Claim arising out of the administration, operation, or maintenance of the Rail Facility, or arising out of or incidental to the activities carried on or work performed or required by this Agreement.

Loss means any loss, cost, expense, liability, damage, sanction, judgment, lien, fine, or penalty, including reasonable attorney's and consultant's fees and expenses, incurred, suffered or paid by, or resulting to, the applicable indemnified Persons on account of (i) injuries (including death) to any Person or damage to or destruction of any property, sustained or alleged to have been sustained in connection with or arising out of the matters for which the indemnifying Party has indemnified the applicable indemnified Persons, (ii) any failure of any representation or warranty made by Operator in this Agreement to be true and correct when made, or (iii) the breach of any covenant or agreement made or to be performed by the indemnifying Party pursuant to this Agreement.

Operating and Capital Expenditure Budget means, with respect to each period, the Operating and Capital Expenditure Budget for such period approved by Owner.

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Operator shall have the meaning set forth in the preamble to this Agreement.

Operator Indemnified Parties means, collectively, Operator, its successors and permitted assigns, and their respective Affiliates, shareholders, members, partners, officers, directors, employees, and agents.

Operator Parties means, collectively, Operator, Operator's Affiliates, and their respective successors and assigns; Operator Party means any such Person individually.

Owner shall have the meaning set forth in the preamble to this Agreement.

Owner Indemnified Parties means, collectively, Owner, its successors and permitted assigns, and their respective Affiliates, shareholders, members, partners, officers, directors, employees, and agents.

Party means either Owner or Operator, as applicable, and Parties means both Owner and Operator.

Person means an individual, a corporation, a partnership, a limited partnership, a limited liability company, an association, a joint venture, a trust, an unincorporated organization, or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

Rail Facility shall have the meaning ascribed to such term m the recital of this Agreement.

Tax or Taxes means any (i) federal, state, provincial, county, local or foreign taxes, charges, fees, levies or other assessments, including all sales and use, goods and services, ad valorem, transfer, gains, profits, excise, franchise, real and personal property, gross receipt, value added, capital stock, production, business and occupation, disability, employment, payroll, license, estimated, stamp, custom duties, severance, unemployment, social security, Medicare, alternative minimum or withholding taxes or charges imposed by any Governmental Authority, and including any interest and penalties (civil or criminal) on or additions to any such taxes, but expressly excluding any income tax or tax based on income, such as, without limitation, the franchise tax set forth in Delaware Tax Code: 8 Del. Laws, c. 5 §501 et. seq., as the same may be amended or recodified from time to time, and (ii) liability for items in (i) of any other Person by contract, operation of Law (including Treasury Regulation 1.1502-6) or otherwise.

Tax Returns means any return, report, election, declaration, statement, notice, information return, schedule, or other document (including any related or supporting information) filed or required to be filed with any Governmental Authority in connection with the determination, assessment, collection or administration of any Taxes or any income tax or tax based on income, such as, without limitation, the franchise tax set forth in Delaware Tax Code 8 Del. Laws, c. 5 §501

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et. seq., as the same may be amended or recodified from time to time, or the administration of any laws, regulations or administrative requirements relating to any Taxes or any amendment thereof.

Voting Securities means, as it relates to a Person, securities of any class of such Person entitling the holders thereof to vote in the election of, or to appoint, members of the board of directors or other similar governing body of the Person; provided that if such Person is a limited partnership, Voting Securities of such Person shall be the general partner interest in such Person.

ARTICLE II    : ENGAGEMENT OF OPERATOR

2.1    Engagement. Owner hereby appoints and retains Operator to manage, operate, and maintain the Rail Facility and to administer the business and regulatory affairs of Owner relating to the Rail Facility in accordance with the terms and conditions set forth herein, and Operator hereby accepts such appointment.

2.2    Independent Contractor. The Parties expressly understand and agree that Operator is acting and shall perform and execute the provisions of this Agreement as an independent contractor unrelated to Owner or any Owner Affiliate, and the work performed by Operator hereunder shall be subject to Owner's general right of inspection and approval. Nothing in this Agreement is intended to create a relationship, expressed or implied, of employer-employee or principal-agent between Owner and Operator or between Owner and any individual employed or provided to work hereunder by Operator.

2.3     Owner Cooperation. Owner shall cooperate with Operator and provide Operator with such information as Operator may reasonably request from time to time in connection with the performance of Operator's duties hereunder.

ARTICLE III    : TERM, RESIGNATION OR REMOVAL OF OPERATOR

3.1    Term. This Agreement shall commence on the Effective Date and, shall continue for the duration of the Lease, unless terminated earlier pursuant to Section 3.2 or 3.3.

3.2    Owner Default. Operator may terminate this Agreement at any time upon the occurrence of any of the following:

(a)    the dissolution or bankruptcy of Owner;

(b)     Owner fails to pay when due any amount due and payable hereunder, including, without limitation, any interest, fees, reimbursements or indemnifications, and such failure shall continue for a period of 15 days after the due date thereof; or

(c)     other than as set forth in clause (b) above, Owner breaches or fails to observe or perform any material term, condition, or obligation contained in this Agreement and fails to correct, or fails to diligently pursue correction of, such breach within 60 days after receipt of written notice from Operator of any such breach.

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If any of the above occurs and Operator elects to terminate this Agreement, then Operator may give a written notice of termination to Owner, which termination shall be effective on the date specified by Operator in such notice, provided that such termination date shall be within 60 days of the date such notice is delivered to Owner. Operator's notice of breach to Owner under Section 3.2(b) or (c) shall state with particularity the breach alleged by Operator. To the extent Owner disputes the basis for Operator's notice of breach, the matter shall be addressed under Section 8.6. Nothing in this Section 3.2 shall be construed to limit or preclude any remedy Operator may have at law or in equity with respect to any material breach by Owner.

3.3     Operator Default. Owner may terminate this Agreement at any time upon the occurrence of any of the following:

(a) the dissolution or bankruptcy of Operator;

(b) Operator fails to pay when due any amount due and payable hereunder, including, without limitation, any interest, fees, reimbursements or indemnifications, and such failure shall continue for a period of 15 days after the due date thereof;

(c) other than as set forth in clause (b) above, Operator breaches or fails to observe or perform any material term, condition, or obligation contained in this Agreement and fails to correct, or fails to diligently pursue correction of, such breach within 60 days after receipt of written notice from Owner of any such breach;

(d) Termination by Owner pursuant to Section 4.1.1; or

(e) Without cause on no less than seven (7) days prior written notice.

In the event Owner terminates this Agreement pursuant to subparagraph (e) above, Owner may reimburse Operator for any unamortized capital expenditure (determined in accordance with GAAP) to the extent such capital expenditure was included in the Operating and Capital Expenditure Budget. If any of the above occurs, other than an event described in subparagraph (d), and Owner elects to terminate this Agreement (a termination for cause), then Owner may give a written notice of termination to Operator, which termination shall be effective on the date specified by Owner in the notice, provided that such termination date shall be within 60 days of the date the notice is delivered to Operator. Owner's notice of breach to Operator under Section 3.3(b) or (c) shall state with particularity the breach alleged by Owner. To the extent Operator disputes the basis for Owner's notice of breach, the matter shall be addressed under Section 8.6. Nothing in this Section 3.3 shall be construed to limit or preclude any remedy Owner may have at law or in equity with respect to any material breach by Operator.

3.4     Cooperation with Owner or Successor Operator. Upon the termination of this Agreement, Operator shall cooperate in the transition of operations to Owner or a successor operator

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and upon Owner's request, will promptly deliver all books and records and other property (including, without limitation, intellectual property) of Owner to Owner or the successor operator, as applicable.

3.5     Effect of Termination. Any termination of this Agreement pursuant to this Article III will release Operator from, and Owner agrees to indemnify Operator against, any liability accruing or accrued hereunder after the effective date of termination, except with respect to the obligations and liabilities of Operator that survive termination including any and all liabilities arising out of or resulting from Operator's operation and maintenance of the Rail Facility. Termination of this Agreement shall not relieve the Parties from any liability or obligation accruing or accrued prior to the date of such termination or deprive a Party not in breach (other than a breach which occurs because such Party is rightfully withholding performance in response to a breach by the other Party) of its right to any remedy otherwise available to such Party.

ARTICLE IV    : DUTIES AS OPERATOR

4.1    Duties as Operator. Operator shall be responsible for (1) construction of the improvements to the Rail Facility in accordance with those plans and specifications approved by Owner in writing, (2) administering the regulatory, business, and financial affairs of the Rail Facility; (3) maintaining the financial and product accounting records of the Rail Facility; 4) preparing and distributing financial statements; (5) complying with any and all instructions it receives from Owner with respect to the operation and maintenance of the Rail Facility, provided that such instructions are consistent with applicable Laws and (6) complying with any and all Law and Environmental Law including any other permits or licenses.

4.1.2     Improvements/Alterations to the Rail Facility. Operator shall evaluate and modify, at its sole cost and expense, the rail car containment pan system (the Containment Pan System) so that such system is in compliance with the Spill Prevention, Control, and Countermeasure Regulations promulgated by the Environmental Protection Agency (the SPCC Regulations) and any other applicable regulations, rules or similar administrative publications promulgated by any other federal, state, or local regulatory agency. Such evaluation and modification, if necessary, of the Containment Pan System shall occur within ninety (90) days of the Effective Date. Owner specifically reserves the right to review, evaluate and approve the plans and specifications developed by Operator for any modifications to be made to the Containment Pan System for such compliance. Owner will provide written notice to Operator, within fifteen (15) days of Operator's submission of the plans and specifications for the Containment Pan System, confirming or denying its approval of Operator's plans and specifications for modification to the Containment Pan System, and in the event Owner does not approve such plans and specifications, Owner will provide Operator with written detail describing why such approval was withheld. Operator will have ten (10) days from the date it receives such written notice from Owner denying approval of its Containment Pan System plans and specifications to remediate such plans and specifications so that the modifications will comply with the SPCC Regulations. If Operator fails to remediate the Containment Pan System plans and specifications in a manner that will result in the modifications to the Containment Pan System complying with the SPCC Regulations within such ten (10) day period in a manner satisfactory to Owner, Owner, in its sole discretion, may unilaterally terminate this Agreement. Additionally, Owner reserves the right to inspect the

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Containment Pan System after Operator has modified such equipment, and if such modifications made by Operator to the Containment Pay System do not comply with SPCC Regulations, then Owner, in its sole discretion, may unilaterally terminate this Agreement. Any other alterations or improvements to the Rail Facility may not be made by Operator without the written consent of Owner.

4.1.3     Operation of the Rail Facility. Operator shall manage and operate the Rail Facility, the construction and future modifications to the Rail Facility, and negotiate agreements in Owner's name with third parties related to the operation of the Rail Facility (provided that (i) Owner shall have the right to approve or disapprove any such agreements, and (ii) if approved, except as provided in Section 4.1.1, Owner, and not Operator, shall execute all such agreements), comply with any instructions it receives from Owner with respect to the operation and maintenance of the Rail Facility, provided that such instructions are consistent with applicable Laws, and perform all other services and functions related thereto subject to the limits, requirements, and restrictions otherwise set forth in this Agreement.

4.1.4    Maintenance of the Rail Facility. Subject to the terms, conditions and limitations set forth in this Agreement, Owner hereby authorizes and empowers Operator, and Operator agrees, in the name of and on behalf of Owner, to, at its sole cost and expense, keep and maintain the Rail Facility in a condition and repair similar to, but not less than, its condition and repair on the Effective Date hereof.

4.1.5     Operator Recommendations. In the event that Operator makes a good-faith recommendation in writing regarding an operational issue to Owner, and Owner does not, for any reason whatsoever, approve such recommendation, then Operator shall not be liable and Owner hereby releases and shall indemnify, defend and hold Operator harmless from and against any Claim or Loss that arises from, or is attributable to, the failure to implement such recommendation.

4.1.6     Compliance with Owner Instructions. Notwithstanding anything to the contrary in this Agreement, in the event that Owner instructs Operator to take any action or refrain from taking any action in connection with the operation or maintenance of the Rail Facility and Operator in good faith disagrees with Owner because, among other reasons, it is not consistent with prudent operating standards, then Operator shall notify Owner of such disagreement in writing, and Owner hereby releases and shall indemnify, defend and hold Operator harmless from and against any Claim or Loss that arises from, or is attributable to, Operator's compliance with Owner's instructions.

4.1.7    Environmental Laws. Operator shall comply, in the performance of its duties and responsibilities hereunder, in all respects with all Environmental Laws and all Environmental Permits.

4.1.8     Purchase of Services, Materials and Supplies. Except as otherwise provided below and subject to the limitations herein, Operator shall, on Owner's behalf and as its agent, purchase or cause to be purchased necessary services, materials and supplies and incur such expenses and enter into such commitments as may be necessary to operate and maintain the Rail Facility, including, but not limited to, (i) contracts for the maintenance, repair and replacement of the Rail

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Facility and, if requested by Owner, construction of additions to the Rail Facility; and (ii) contracts for power, fuel, other utilities, and communication facilities as may be necessary in connection with proper operation and maintenance of the Rail Facility and for providing adjustments and replacements thereto.

4.1.9     Personnel. Except as otherwise provided below and subject to the limitations herein, Operator, in its reasonable judgment, shall employ such personnel, with Operator or an Affiliate as their employer, as it may deem necessary to operate and maintain the Rail Facility and to provide adjustments and replacements thereto and to perform its other obligations hereunder. In addition to Operator's or Operator's Affiliates' employees who are either full-time or part-time dedicated to operating and maintaining the Rail Facility, Operator may: (i) utilize from time to time its other employees or the employees of Operator's Affiliates in services in connection therewith at a usual and customary rate of compensation; and/or (ii) engage the services of third-party contractors in the performance of such functions. Notwithstanding the foregoing, all personnel provided by Operator to operate and maintain the Rail Facility shall have the requisite background, training and skill necessary to operate such a facility in accordance with all current industry standards and any and all applicable state and federal Laws, Environmental Laws, and Environmental Permits.

4.1.10     Payment of Operating Expenses. Operator shall promptly pay all direct costs and expenses incurred in operating and maintaining the Rail Facility as they become due, without reimbursement by Owner save and except to the extent specifically provided otherwise herein.

4.1.11    Operating Expense Budget. Operator shall (i) administer and otherwise comply with the budget proposed by Operator and approved by Owner (ii) operate and maintain the Rail Facility in compliance with the Operating and Capital Expenditure Budget established for the Rail Facility; provided, however, if Owner instructs Operator to perform any services outside of the scope of the services contemplated in the Operating and Capital Expenditure Budget (exclusive of those services to be performed by Operator in connection with any necessary alterations or modifications to the Containment Pan System pursuant to Section 4.1.1), then Owner shall reimburse Operator for the costs and expenses associated therewith.

4.1.12     Capital Projects. Operator may propose an unbudgeted Capital Project at any time by giving written notice of such to Owner. The notice (the Capital Project Proposal) must specifically describe the proposed Capital Project and shall include the following:

(i)a good-faith estimate of the costs associated with the operation and maintenance of the proposed Capital Project;

(ii)preliminary engineering designs and plans; and

(iii)general requirements or provisions for the Capital Project, including construction of the Capital Project and insurance coverage.

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Owner shall approve or reject the proposed Capital Project set forth in the applicable Capital Project Proposal within fifteen (15) days from the date of receipt of the same, such approval not to be unreasonably withheld, conditioned or delayed. If Owner approves the applicable Capital Project, then Operator shall have the right and authority with respect to the approved Capital Project to make expenditures, or enter into contracts to incur expenditures, without further authorization by Owner; provided, however, Owner will not be responsible for reimbursing Operator for any expenditures incurred by Operator related to the construction, operation, and maintenance of the Capital Project.

4.1.13     Emergencies. Notwithstanding any provision of this Agreement, in the event of an Emergency, Operator shall proceed with maintenance or repair work or with any other action when necessary to minimize damage and to end the Emergency (Emergency Work), without regard to the limits set forth in this Article IV. Operator shall, as soon as reasonably practicable, notify Owner of the existence or occurrence of the Emergency, setting forth the nature of the emergency, the corrective action taken or proposed to be taken, and the actual or estimated cost of such corrective action. Emergency Work shall include only such work as is necessary to immediately address the Emergency and does not include any work necessary to restore the Rail Facility or improve the Rail Facility in order to permit continued operations.

4.1.14    Reporting By Operator. Operator shall (by either (i) submitting written reports or records or (ii) providing Owner with access to Operator's internet website containing the relevant information, at Operator's discretion) provide to Owner the following reports or records, based on the best data available at the time of preparation and subject to revision based on acquisition of more accurate data:

(i) as soon as available, and in any event within 30 days after the end of each calendar month, an operational report on major repairs and other operational details materially affecting the operations of the Rail Facility during such month;

(ii) as soon as available, and in any event within 30 days after the end of each Calendar Year, a certificate from the president or chief executive officer of Operator stating that no event or condition exists or has occurred that violates, results in a breach of, or constitutes a default on the part of any Operator Party under, any of the terms, conditions or provisions of this Agreement;

(iii) within 5 days of Owner's request, environmental information or records pertaining to the Rail Facility (as specified by Owner) necessary for Owner to comply with any reporting obligations of Owner related to all applicable Environmental Law and Environmental Permits; and

(iv) such other information regarding the Rail Facility or the operation and maintenance of the Rail Facility as Owner may from time to time reasonably request.

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4.1.15    Notices to Owner. Operator shall immediately notify Owner in writing of (i) any enforcement, clean-up, removal or other governmental or regulatory action instituted, completed or threatened against Operator Parties or Owner pursuant to any Law or Environmental Law as a result of the operation of the Rail Facility; (ii) any claim made or threatened by any person arising out of or in connection with the operation of the Rail Facility against Operator Parties or Owner relating to damage, contribution, cost recovery, compensation loss or injury resulting from or claimed to result from any Hazardous Materials; (iii) any reports made to any environmental agency arising out of or in connection with any Hazardous Materials removed from the Rail Facility or the property on which the Rail Facility is situated including any complaints, notices, warnings, reports or asserted violations in connection therewith; and (d) the discovery of any Hazardous Materials at the Rail Facility or the property on which the Rail Facility is situated that are or may be in violation of Environmental Law. Operator shall also provide to Owner, as promptly as possible, and in any event within five (5) business days after the Operator Parties first received or sent the same, copies of all claims, reports, complaints, notices, warnings or asserted violations relating in any way to the Rail Facility or the Operator Parties' operation thereof. Upon written request of Owner (to enable Owner to defend itself from any claim or charge related to any Law or Environmental Law), Operator shall promptly deliver to Owner notices of hazardous waste manifests reflecting the legal and proper disposal of all such Hazardous Materials removed from the Rail Facility or the property on which the Rail Facility is situated.

4.1.16     Chevron Terminaling Agreement. Each of the parties hereto acknowledges that rail car utilization is a service to which Chevron Marine Products LLC (Chevron) is entitled under that certain Terminaling Agreement between Chevron and Owner, dated as of May 1, 2008 (the Chevron Terminaling Agreement).  As such, Operator agrees to provide such service to Chevron in the event such service is warranted until the earlier to occur of (i) the termination of the provisions of this Agreement, or (ii) the termination of the Chevron Terminaling Agreement.

4.1.17     Regulatory Affairs. Operator shall be responsible for preparing and submitting all regulatory filings pertaining to the Rail Facility required by any Governmental Authority.

4.1.18     Devotion of Time. The employees of Operator, or the Operator Parties, as applicable, designated to perform the functions under this Agreement shall devote such time to the operation and maintenance of the Rail Facility as necessary to accomplish the responsibilities of Operator as set forth in this Article IV. Owner recognizes that the employees of Operator, or the Operator Parties, as applicable, shall not be obligated to devote full time to the operation and maintenance of the Rail Facility and that such employees of Operator may act on behalf of Operator or the Operator Parties, as applicable, in activities not associated with this Agreement.

4.2    Standard of Care. Operator shall perform its duties and obligations hereunder and its responsibilities as Operator of the Rail Facility, (i) in a good and workmanlike manner, (ii) in conformity with the good practices in the rail car loading and unloading industry, (iii) in accordance with all valid and applicable Laws, including, without limitation, all Environmental Laws and Environmental Permits, and (iv) in accordance with the Operating and Capital Expenditure Budget.

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4.3    Limitation of Authority. Notwithstanding anything in this Agreement, Operator shall seek prior approval of Owner prior to taking the following actions:

4.3.1     Binding Owner. Endorsing the name of Owner on any contract, commercial paper, or instruments of any nature or otherwise creating any obligation binding upon Owner except as expressly permitted under this Agreement.

4.3.2    Asset Sales. Acquiring or disposing of any assets of Owner in a single transaction or in a series of related transactions, with a fair market value exceeding $10,000 in the aggregate, provided, however that Operator is expressly permitted to terminate leases or other contracts in respect of rental equipment regardless of value.

4.3.3     Incurring any indebtedness on behalf of Owner, except for trade credit incurred by Operator in the ordinary course of business or within its expenditure authority set forth in this Agreement.

ARTICLE V    : ACCOUNTING, REPORTS, RECORDS

5.1     Accounting Methods. Operator shall keep proper and complete records and books of account, which shall fully and accurately reflect all transactions and other matters relative to its operation and maintenance of the Rail Facility as are entered into records and books of account in accordance with generally accepted industry practices, and the same shall be supported by purchase orders, invoices, payrolls or other customary or necessary records pertaining thereto. Operator's financial books and records shall be kept in accordance with GAAP and shall be maintained on an accrual basis. The costs of any audit of Operator's books or records shall be borne by Owner absent manifest error.

5.2     Independent Audits. Upon reasonable prior written notice to Operator, Owner shall have the right during normal business hours to audit or examine all books and records of Operator to the extent they relate to Operator's performance hereunder as well as the relevant books of account of Operator's contractors, relating to the performance of Operator's obligations under this Agreement. Operator shall cooperate with Owner's auditors by (i) making the applicable books and records available for inspection by Owner's auditors, and (ii) making such copies of books and records as may be reasonably requested by such auditors. In no event shall Owner's audits unreasonably interfere with Operator's operations.

ARTICLE VI    : FORCE MAJEURE

6.1    Procedure. If either Party is rendered unable, wholly or in part, by Force Majeure to carry out its obligations under this Agreement, other than the obligation to indemnify and to make payments then or thereafter due hereunder, upon such Party giving notice and full particulars of such Force Majeure in writing to the other Party as soon as reasonably possible after the occurrence of the cause relied on, then the obligations of the Party giving such notice, so far as they are affected by such Force Majeure, will be suspended during the continuance of any inability so caused but for no longer period, and such cause must as far as possible be remedied with all reasonable and diligent dispatch by the Party claiming such in order to put itself in a position to carry out its obligations

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under this Agreement. Such notifying Party must also provide notice of the date of termination of such Force Majeure event. A Force Majeure event affecting the performance by either Party shall not relieve it of liability in the event of its negligence, where such negligence was a cause of the Force Majeure event, or in the event of its failure to use commercially reasonable efforts to remedy the situation and remove the cause with all reasonable dispatch.

6.2     Strikes. It is understood and agreed that the settlement of strikes or lockouts is entirely within the discretion of the Party directly involved in the strike or lockout, and that the above requirement that any Force Majeure must be remedied with all reasonable dispatch will not require the settlement of strikes or lockouts by acceding to the demands of the opposing party when such course is inadvisable in the discretion of the Party having the difficulty.

ARTICLE VII    : INSURANCE AND INDEMNIFICATION

7.1    Operator Insurance.

7.1.1     Operator, with respect to Operator's activities provided for under this Agreement, shall maintain the following insurance coverage with responsible insurance carriers:

(a)    Workers' Compensation. Operator shall maintain statutory worker's  compensation insurance, covering all of its and its Affiliates' employees and statutory employees, in accordance with the benefits afforded by the statutory Worker's Compensation Acts applicable to the state, territory, or district of hire, supervision, or place of accident. In addition, Operator shall maintain employer's liability insurance with a limit of not less than one million dollars ($1,000,000) each accident, one million dollars ($1,000,000) disease each employee, and one million dollars ($1,000,000) disease policy limit. Where not prohibited by law, Operator shall waive its right of subrogation against Owner.

(b)     Commercial General Liability Insurance. Operator shall maintain Commercial General Liability Insurance covering its operations under this Agreement including, without limitation, bodily injury, death, property damage, premises/operations, sudden and accidental pollution, independent contractors, products/completed operations, contractual, and personal injury liability, with a limit of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in the annual aggregate.

(c)     Commercial Automobile Insurance. Operator shall maintain Commercial Automobile Insurance coverage, including, without limitation, bodily injury and property damage for owned, hired, rented, and non-owned automotive equipment with a limit of not less than one million dollars ($1,000,000) per accident.

(d)     Umbrella Liability Insurance. Operator shall maintain Umbrella Liability Insurance coverage covering in excess of (a), (b), and (c) above, excluding Worker's Compensation, in the amount of ten million dollars ($10,000,000).

7.1.2     To the extent of the liabilities assumed by Operator in this Agreement, Operator shall name Owner Indemnified Parties as additional insured on all insurance policies,

13 10.23





except Workers' Compensation. The Owner Indemnified Parties' additional insured status will not limit the application of insurance protection as required by this Agreement which arises out of the Operator's indemnity obligations. These policies shall provide primary coverage for claims in which Operator has agreed to hold harmless and/or to indemnify the Owner Indemnified Parties. No other insurance clause may be invoked by any insurer. This coverage shall apply whether or not the indemnification is valid. Operator shall have its insurer(s) waive its right of subrogation against Owner Indemnified Parties on all insurance carried. Unless expressly stated to the contrary elsewhere in this Agreement or prohibited by applicable law or legal statute, Operator's indemnification obligations under this Agreement shall not be limited by amount or in scope to coverage provided by insurance which is required under this Agreement.

7.1.3    Upon request, Operator agrees to furnish to Owner certificates of insurance or other evidence satisfactory to Owner to demonstrate that the required insurance has been procured and is in force. The certificate shall accurately reflect the required insurance coverages and shall provide that in the event of modification, expiration, cancellation or material change in a policy affecting the certificate holder, thirty days prior written notice shall be given to the certificate holder. Operator waives all rights against Owner for recovery of damages to the extent such damages are covered by the insurance maintained in accordance with this Section 7.1.

7.2    Contractors. Operator acknowledges and agrees that any contractor engaged by Operator to perform services at the Rail Facility will be required to execute an access agreement, in a  form acceptable to Owner, prior to such contractor accessing the Rail Facility and performing any services. Further, Operator shall attempt to obtain reasonable indemnification and insurance protection from contractors performing services for Owner to protect Owner and Operator. Operator shall require each of its contractors to carry insurance coverage substantially equivalent to the insurance required of Operator above, and to include provisions for its contractors to name Owner and Operator as additional insureds, with the exception of Workers' Compensation Insurance, and state that such policies will be primary to and non-contributory with any other insurance maintained by Operator and Owner. With respect to Workers' Compensation Insurance, the applicable contractor shall be required to cause its insurers to wave all rights of recovery or subrogation against Owner and Operator, where not prohibited by law.

7.3    Notice of Claims. In the event that Operator receives notice, either in writing or orally, of an asserted or threatened Liability Claim against Operator or Owner, Operator shall provide Owner within 10 days of receipt of such Liability Claim a copy of any demand letter, petition, or similar documentation of the Liability Claim.

7.4    Mutual Release and Indemnification.

7.4.1    Owner's Indemnification. Subject to the terms of this Agreement, including, without limitation, Section 8.8 of this Agreement, Owner shall indemnify, defend, and hold harmless the Operator Indemnified Parties from and against all Claims and Losses arising out of or relating to (i) allegations of death or bodily injury or damage to property, to the extent arising out of or resulting from the negligence, gross negligence or willful misconduct of Owner, its Affiliates or its or their respective officers, directors, employees, or contractors in connection with this Agreement or the performance hereof; provided that Owner shall not be required to indemnify the Operator

14 10.23





Indemnified Parties against such Claims and Losses to the extent such Claims and Losses are attributable to the acts or omissions of any Operator Indemnified Parties, (ii) any breach of this Agreement by Owner, and (iii) any agreements relating to the Rail Facility between Owner and third parties not affiliated with the Operator Parties (except to the extent expressly assumed by Operator hereunder). The duty to indemnify, defend and hold harmless under this Section 7.4.1 shall continue in full force and effect, notwithstanding the expiration or early termination of this Agreement, with respect to any Claims or Losses based on facts or conditions that occurred prior to such expiration or termination.

7.4.2     Operator's Indemnification. Subject to the terms of this Agreement, including, without limitation, Section 8.8 of this Agreement, Operator shall indemnify, defend, and hold harmless the Owner Indemnified Parties from and against all Claims and Losses arising out of or relating to (i) allegations of death or bodily injury or damage to property, to the extent arising out of or resulting from the negligence, gross negligence or willful misconduct of Operator, its Affiliates or its or their respective officers, directors, employees, or contractors in connection with this Agreement or the performance hereof; provided that Operator shall not be required to indemnify the Owner Indemnified Parties against such Claims or Losses to the extent such Claims or Losses are attributable to the acts or omissions of any Owner Indemnified Party, (ii) any breach of this Agreement by Operator, and (iii) any agreements relating to the Rail Facility between Operator and third parties not affiliated with Owner (except to the extent expressly assumed by Owner hereunder). The duty to indemnify, defend and hold harmless under this Section 7.4.2 shall continue in full force and effect, notwithstanding the expiration or early termination of this Agreement, with respect to any Claims or Losses based on facts or conditions that occurred prior to such expiration or termination.

ARTICLE VIII    : GENERAL PROVISIONS

8.1    Additional Rail Facilities. Nothing in this Agreement shall limit Owner's right to construct, expand or modify, and operate other rail car loading/off loading facilities (i) at Owner's terminal and storage facility located on the property on which the Rail Facility is located, or (ii) at any other location in Owner deems necessary and beneficial.

8.2    Notices. Except as specifically provided otherwise herein, any notice, claim, or other communication provided for in this Agreement or any notice that either Party may desire to give to the other shall be in writing and shall be: (i) sent by facsimile transmission; (ii) delivered by hand; (iii) sent by United States mail with all postage fully prepaid; or (iv) delivered by courier with charges paid in accordance with the customary arrangements established by such courier, in each of the foregoing cases addressed to the Party at the following addresses:

To Owner:

Magellan Terminals Holdings, L.P. Attn: Mark Roles Manager, Commercial Development P.O. Box 22186 MD 31st Floor

15 10.23





Tulsa, Oklahoma 74121-2186                                                                               To Operator:

Omega Refining, LLC Attn: Robert Winland 5000 River Road Marrero, Louisiana 70072

with a copy to:

Gregory & Plotkin, LLC Attn: James P. Gregory, Esq. 1331 17t h Street, Suite 1060 Denver, Colorado 80202

or at such other address as either Party may at any time designate by giving written notice to the other Party. Such notices, claims, or other communications shall be deemed received as follows:

(i) if delivered personally, upon delivery;

(ii) if sent by United States mail, whether by express mail, registered mail, certified mail or regular mail, the notice shall be deemed to have been received on the day receipt is refused or is confirmed orally or in writing by the receiving Party;

(iii)if sent by a courier service, upon delivery; or

(iv)if sent by facsimile, the Business Day following the day on which it was transmitted and confirmed by transmission report or such earlier time as confirmed orally or in writing by the receiving Party.

8.3    Rights. The failure of either Party to exercise any right granted hereunder shall not impair nor be deemed a waiver of that Party's privilege of exercising that right at any subsequent time or times.

8.4     Applicable Laws. This Agreement is subject to all valid present and future laws, regulations, rules, and orders of governmental authorities now or hereafter having jurisdiction over the Parties, this Agreement, any of the transactions contemplated hereby or the Rail Facility.

8.5    Rules of Construction. In construing this Agreement, the following principles shall be followed:

8.5.1     no consideration shall be given to the fact or presumption that one Party had a greater or lesser hand in drafting this Agreement;

16 10.23





8.5.2    examples shall not be construed to limit, expressly or by implication, the matter they illustrate;

8.5.3     the word includes and its syntactical variants mean includes, but is not limited to and corresponding syntactical variant expressions; and

8.5.4     the plural shall be deemed to include the singular and vice versa, as applicable.

8.6    Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware, without regard to choice of law principles that would require the application of the laws of any other jurisdiction.

8.7    Dispute Resolution.

8.7.1    Negotiation. Prior to submitting any dispute for resolution by a court, a Party shall provide written notice to the other of the occurrence of such dispute. If the Parties have failed to resolve the dispute within 15 Business Days after such notice was given, the Parties shall seek to resolve the dispute by negotiation between senior management personnel of each Party. Such personnel shall endeavor to meet and attempt to amicably resolve the dispute. If the Parties are unable to resolve the dispute for any reason within 30 Business Days after the original notice of dispute was given, then either Party shall be entitled to pursue any remedies available at law or in equity; provided, however, this Section 8.6.1 shall not limit a Party's right to initiate litigation prior to the expiration of the time periods set forth herein of such limitations would prevent a Party from filing a lawsuit or claim within the applicable period for filing lawsuits (e.g. statutes of limitation, prescription, etc.).

8.7.2     Costs and Expenses. The prevailing Party in any litigation pertaining to any dispute hereunder shall be entitled to recover its reasonable costs, expenses, and attorney's fees in connection with such litigation.

8.8     Limitation of Liability. Notwithstanding anything in this agreement to the contrary, neither Party shall be liable to the other Party for special, indirect, consequential, punitive, or exemplary damages suffered by such Party resulting from or arising out of this Agreement or the breach thereof or under any other theory of liability, whether tort, negligence, strict liability, breach of contract, warranty, indemnity, or otherwise, including, without limitation, loss of use, increased cost of operations, loss of profit or revenue, or business interruptions. In furtherance of the foregoing, each Party releases the other Party and waives any right of recovery for special, indirect, consequential, punitive, or exemplary damages suffered by such Party regardless of whether any such damages are caused by the other Party's negligence (and regardless of whether such negligence is sole, joint, concurrent, active, passive, or gross negligence), fault, or liability without fault.

8.9     Entirety of Agreement, Amendments. This Agreement, including, without limitation, all exhibits hereto, integrate the entire understanding between the Parties with respect to the operation and maintenance by Operator of Owner's Rail Facility and supersede all prior understandings, drafts, discussions, or statements, whether oral or in writing, expressed or implied,

17 10.23





dealing with the same subject matter. This Agreement may not be amended or modified in any manner except by a written document signed by the Parties that expressly amends this Agreement.

8.10    Waivers. No waiver by either Party of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless expressly provided. No waiver shall be effective unless made in writing and signed by the Party to be charged with such waiver.

8.11    Headings. The headings and captions in this Agreement have been inserted for convenience of reference only and shall not define or limit any of the terms and provisions hereof.

8.12     Rights and Remedies. Except as otherwise provided in this Agreement, each Party reserves to itself all rights, counterclaims, other remedies, and defenses to which such Party is or may be entitled arising from or out of this Agreement or as otherwise provided by law.

8.13     Assignment. Operator shall not make any assignment of all or any part of this Agreement or any of the rights or obligations hereunder unless there first shall have been obtained the written consent thereto of Owner, which consent shall not be unreasonably withheld, conditioned, or delayed. Owner shall not make any assignment of all or any part of this Agreement or any of the rights or obligations hereunder except in connection with the sale, financing or conveyance of all or any part of the Rail Facility. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties. Any attempted assignment of this Agreement in violation of this Section 8.12 shall be null and void.

8.14     Counterparts. This Agreement may be executed in one or more counterparts (including by facsimile), each of which shall be deemed an original, and all of which shall be deemed one and the same Agreement.

8.15    No Third Party Beneficiary. Except for parties indemnified hereunder, this Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns, and shall not inure to the benefit of any other Person whomsoever or whatsoever, it being the intention of the Parties that no third Person shall be deemed a third-party beneficiary of this Agreement.

8.16     Further Assurances. Each Party shall take such acts and execute and deliver such documents as may be reasonably required to effectuate the purposes of this Agreement.

* * * * *

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IN WITNESS WHEREOF, the undersigned have executed or caused to be executed on their behalf this Agreement to be effective on the Effective Date.





Operation & Maintenance Agreement Signature Page   K&E 10351208.3





EXHIBIT A

  Exhibit A   K&E 10351208.3





EXHIBIT C Owner's Facility Security Plan

2 10.23
Highlight the parts (if any) of this contract related to Insurance that should be reviewed by a lawyer. Details: Is there a requirement for insurance that must be maintained by one party for the benefit of the counterparty?

Exhibit 10.21

Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*****]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

Network Management Outsourcing Agreement



Bank of South Pacific Ltd   Network Management Outsourcing Agreement







Datec Contact Details   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]     Commercial in Confidence   Page 2   May 2004

Network Management Outsourcing Agreement   ***** CONFIDENTIAL TREATMENT REQUESTED





Bank Of South Pacific Ltd

Document outline prepared by Des Kearse: Datec PNG Ltd May 2004



Document Distribution, Approval and Revision History

Distribution

This document has been distributed to   Name   Title-Company [*****]   [*****]   [*****]   [*****]   [*****]   [*****]   [*****]

Approvals

This document requires the following approvals. Signed approval forms are filed in the Quality section of the Bank of South Pacific Limited and Datec PNG LTD.   Name   Title

Revision History   Date of this revision:   Date of Next revision: (date)   Revision Number   Revision Date   Summary of Changes   Changes marked                     Commercial in Confidence   Page 3   May 2004

Network Management Outsourcing Agreement   ***** CONFIDENTIAL TREATMENT REQUESTED





Abbreviations   Bank South Pacific Limited   BSP

Datec PNG Limited   Datec

Business Continuity Planning   BCP

Hardware, Maintenance, Support Services for designated Equipment   Break Fix

BSP Customer Business Manager   CBM

Disaster Recovery Plan   DRP

Financial Point of Sale   FPOS

Local Area Network   LAN

Managed Third Parties   MTP

Moves, Adds and Changes   MACs

Network Terminal Unit   NTU

Request for Service   RFS

Service Level Agreement   SLA

Single Point of Contact   SPOC

Wide Area Network   WAN   Commercial in Confidence   Page 4   May 2004

Network Management Outsourcing Agreement





Definitions

Agreement means this agreement. The Network Management Outsourcing Agreement.

CPI means an amount determined by reference to All Groups Indexes for Urban Areas being the figure relating to the weighted urban average for PNG contained in the Consumer Price Index published by the Papua New Guinea Bureau of Statistics each quarter in the Papua New Guinea Statistical Bulletin.

Help Desk means a physical location within Datec's head office designated as an immediate contact point to provide service assistance to customers.

Material Breach includes (but is not necessarily limited to) the occurrence of any or more of the following:

  (i) a breach, or series of breaches, of this agreement which causes a substantial disruption to the Services; or

  (ii) an accumulation of breaches which places unreasonable burdens on the BSP Personnel, or

  (iii) Datec commits a breach which at common law would justify termination of this agreement, or

  (iv) Datec commits multiple breaches of this agreement occurring within a 6 month period; or

  (v) Datec fails to comply with the Transition Plan.

Business Hours means Monday to Friday 07.30 hours to 18.00 hours.   Commercial in Confidence   Page 5   May 2004

Network Management Outsourcing Agreement





TABLE OF CONTENTS   OVERVIEW   1.1   Introduction   10 1.2   Document Structure   10 1.3   Agreement Assumptions   10 1.4   Contract Term   10 1.5   Hours of Support   10

The Datec (PNG) LTD Deliverables   2.1   General Statements   11 2.2   Physical Boundaries And Demarcation Points   11 2.3   Network Operations Management   12 2.4   Systems And Technical Support   13 2.5   Network Virus Management   14 2.6   Internet Services   14 2.7   Management Tools   14 2.8   Document Management   15 2.9   Related Software Distribution   15 2.10  Technology (Equipment) Refresh Planning And Implementation Recommendations   16 2.11   Performance Management   16 2.12  Capacity Management   17 2.13  Managed Third Parties (MTP)   18 2.14  Moves, Adds And Changes (MACs)   18 2.15  Help Desk Services   19 2.16  Hardware, Software And Equipment Support   20 2.17  User Logon And Password Administration for Wide Area Network (WAN)   21 2.18  Project Services   21 2.19  Asset Management   22 2.20  Security Services   22 2.21  Business Continuity Planning (BCP) And Disaster Recovery Plan   23 2.22  Change Management   23 2.23  Backup Requirements   24 2.24  Designated Locations   24

Performance Standards   3.1   General Requirements   25 3.2   Measurement And Monitoring Tools   25 3.3   All Data And Supporting Information Confidential   26

Reports   4.1   Reporting   26 4.2   Types Of Reports   26 4.3   Structure Of Reports   27   Commercial in Confidence   Page 6   May 2004

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Personnel   5.1   Standards Of Datec Personnel   27 5.2   Replacement At BSP's Request   28 5.3   No Right To Require Termination   28 5.4   Restraints On Engagement Of BSP Personnel   28 5.5   Enforceable Restraint   28 5.6   Employer Obligations   28 5.7   Security And Occupational Health And Safety   29

Audits And Record Keeping   6.1   Record Keeping   29 6.2   Access To The Datec's And Subcontractors Premises And Material   29 6.3   Regular Audits For BSP Reporting   29 6.4   Assistance   29

Subcontractors   7.1   Approval   30 7.2   Terms   30

Pricing   8.1   General Principles   30 8.2   Base Fees   30 8.3   Price Inclusive   30 8.4   Pricing Criteria   31 8.5   Rebates   31

Pricing Adjustments   9.1   CPI Adjustments   31 9.2   Pass - Through Expenses   32 9.3   Service Level Reviews   32

Extraordinary Events   10.1   Extraordinary Events   32

Confidentiality   11.1   Confidentiality   32   Commercial in Confidence   Page 7   May 2004

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Returning Material, Data, Hardware, Software And Information   12.1   Datec's Obligations   33 12.2   BSP's Obligations   33

Compliance With Laws   13.1   Compliance   33

Termination   14.1   Termination By BSP for Cause   33 14.2   Termination For Change Of Control   33 14.3   Termination By BSP For Convenience   34 14.4   Termination By Datec For Convenience   34 14.5   Termination Fee   34 14.6   Sole Remedy   34 14.7   Mitigation   34

General Indemnities   15.1   Indemnity By Datec (PNG) LTD   35 15.2   Enforcement Of Indemnities   36

Personal Injury, Property Damage Indemnity   16.1   Datec Indemnifies BSP   36 16.2   BSP Indemnifies Datec   36

Risk Management   17.1   Insurance Coverage   36 17.2   Terms Of Insurance   37

General Conditions   18.1   Assignment By Datec   37 18.2   Assignment By BSP   37 18.3   Governing Law   37

Dispute Resolution   19.1   Notice   37 19.2   Escalation   37 19.3   Expert Determination Or Mediation   38 19.4   Expert Determination Criteria   38 19.5   Selection Of Expert Or Mediator   38 19.6   Procedure   38   Commercial in Confidence   Page 8   May 2004

Network Management Outsourcing Agreement





Disengagement   20.1   Planning   39 20.2   Implementation Of Plan   39

Schedules   A:   Equipment List - Asset Register   42 B:   Service Level Agreement   45 C:   Pricing Schedule   50 D:   Sample Moves, Adds, and Changes Form - (MAC Form)   51 E:   Sample Request for Service Form - (RFS Form)   55   Commercial in Confidence   Page 9   May 2004

Network Management Outsourcing Agreement





OVERVIEW

1.1 Introduction

This Network Management Outsourcing Agreement incorporates the terms and conditions for the provision of Network Outsourcing Services and Deliverables by Datec (PNG) LTD (Datec) to the Bank of South Pacific Limited (BSP).

The parties further agree that they will provide best commercial efforts for the benefit of one another to ensure that neither the BSP nor Datec are disadvantaged throughout the fulfilment of this agreement.

The parties will therefore provide full assistance to each other and agree to work proactively together to:

  •   Improve and enhance the Services for the benefit of the BSP and

  •   Perform their respective obligations for the benefit of the BSP   1.2 Document Structure

This document is structured to capture the key conditions of the agreement in a logical order. It is understood that the agreement may be changed at any time by the mutual consent of both parties using the revision history and approval records contained in the Document Distribution, Approval and Revision History.   1.3 Agreement Assumptions

The following assumptions apply to this agreement:

  •   All tasks and the scope of work are covered by this agreement.

  •   This agreement is for the provision of management services covering the BSP Wide Area Network (WAN) and provided by Datec.

  •   The BSP existing WAN has been upgraded to the standard agreed to by Datec and the BSP as detailed in the Phase 3 Document dated 12th December 2003 entitled Audit Review Recommendation Costs' and the Memorandum of Understanding dated 7th May 2004.

  •   BSP is formally engaging Datec to be the network manager for the provision of service for the day-to-day operations of the wide area network (WAN) service.

  •   BSP will retain ownership of all the assets as listed in the Asset Register and contained in Schedule A.   1.4 Contract Term

The commencement date for this contract will be 16th June 2004.

The initial term of the contracted agreement is 5 years from the commencement date. The BSP then have the option to renew the agreement for another 5 years subject to any restructuring of the agreement as required by the parties.

Either party may advise the other of the impending expiry of the then current term, generally in accordance with section 14 .   1.5 Hours of Support

The normal business hours for services under this agreement will be Monday - Friday 07.30 hours to 1800 hours.

Twenty-Four Hour (24Hour) Help Desk will be provided Monday to Friday outside of normal business hours.   Commercial in Confidence   Page 10   May 2004

Network Management Outsourcing Agreement





The Datec (PNG) LTD Deliverables

2.1 General Statements

Datec will:

  (a) provide operational support services for designated Equipment and Networks;

  (b) perform moves, adds and changes (MACs) for data services;

  (c) provide pricing and perform MACs for data services;

  (d) take over where agreed and/or manage existing third party contracts (MTP'S) as agreed with the BSP;

  (e) act as the local BSP representative in matters directly related to the BSP, in a cooperative manner, with other Managed Third Parties (MTP) and take responsibility for the resolution of WAN related activity by acting as the vendor interface.

  (f) provide hardware maintenance support services for designated Equipment (break Fix) as defined in Schedule A,

Datec will deliver the following project related Services:

  (a) perform Site Surveys, Stage and configure new Equipment, deliver the Equipment, install the Equipment, manage the installation of the Network Services, test, and accept the Network as required.   2.2 Physical Boundaries And Demarcation Points

2.2.1 It is agreed that Datec will have operational responsibility on behalf of the BSP to manage the Wide Area Network (WAN), which is defined as Hosting the HUB and PIX Firewall plus the management of the network to each and including the main branch switch, including all Financial Point of Sale (FPOS) links owned by the BSP.

2.2.2 BSP will have operational responsibility from the main branch switch onwards and any equipment that is connected to this. This is considered to be the Local Area Network (LAN). FPOS links are excluded.   2.2.3 Datec will be responsible for providing BSP with updated site information for existing Sites as necessary to satisfy BSP's business and operational requirements as they may change overtime. Whenever required to install a new Site on the Network, Datec will conduct a physical survey of that Site to determine Site features, implementation readiness, and specific installation needs for required standards. Site Survey information will be recorded in a database in the network management system. Site Survey information will include definitions and clarification of:

  (a) current Network Services;   Commercial in Confidence   Page 11   May 2004

Network Management Outsourcing Agreement





  (b) Telecommunications vendor point of entry;

  (c) boundaries of responsibility;

  (d) power/UPS requirements;

  (e) space requirements;

  (f) Equipment related special requirements;

  (g) cabling and wiring requirements; and

  (h) relevant environmental requirements.   2.2.3 Floor Space

Certain hardware such as the Telikom Lease Line Circuits -NTU's (Network Terminal Units), Pix Firewall and content engine, plus and a number of routers and switches will need to be relocated to the Datec computer room. The computer room and the Datec building have been purposely built with a full disaster recovery management system in place with triple redundancies. The space that this equipment will occupy is based on the industry standards set for such equipment when placed in a computer room environment.   2.3 Network Operations Management

Datec will:

2.3.1 Maintain designated Equipment as listed in Schedule A, and any other equipment that may added from time to time within Papua New Guinea.

(i) BSP will provide Datec with tine required authority to acquire spares parts in order to complete any repairs /replacement that may be required

(ii) Datec will be responsible for the provision of any spare parts required to complete any repairs to the managed Network equipment.   2.3.2 Maintain a Single Point of Contact to interface with and coordinate problem determination and resolution with BSP's appropriate support personnel and third party service providers;   2.3.3 Perform Incident Management to closure. Datec will provide Level 1 support by:

(a) entering problem information into a problem record;

(b) performing incident source identification and severity impact level;

(c) providing feedback to users;

(d) invoking proper incident resolution resources;   Commercial in Confidence   Page 12   May 2004

Network Management Outsourcing Agreement





  (e) dispatching on site service resources, where applicable;

  (f) monitoring resolution status and document actions taken;

  (g) manage escalation or critical situation procedures;

  (h) compiling and maintain the incident resolution system;

  (i) confirming incident resolution with the end user prior to closure;

  (j) maintaining a second and third-level contacts list system including site access requirements for business and after hours site access;   2.3.4 Level 2 support responsibilities include:

  (a) performing problem analysis, trending and reporting;

  (b) accepting problems not completed by Level 1 support personnel;

  (c) investigating severe and recurring problems to determine the root cause, expediting problem resolution and, using historical data, to minimise the recurrence of duplicate or similar incidents;

  (d) working with vendors to resolve problems;

  (e) contacting other support groups and organisations;

  (f) interfacing with other systems, data networks and operating system environment personnel;

  (g) escalating delays in problem resolution; and

  (h) focusing on making fixes available to the first-level support team, to decrease resolution times.

2.3.5 provide problem reports to BSP on a periodic basis, including required information on problems, owner, location, Service Level Agreement (SLA) commitments achieved and status of any problems, including their impact on the required service level.   2.4 Systems And Technical Support

Datec Will:

  (a) be responsible for the installation support, management and control of the BSP WAN environment in Papua New Guinea.

  (b) be responsible for testing, certifying, configuring and deploying upgrades to any installed Software to the latest version available from the Software vendor as agreed with the BSP

  (c) work with BSP Personnel to communicate the effect and impact and compatibility of any changes to the Hardware and Software managed to ensure minimal business impact of such changes;   Commercial in Confidence   Page 13   May 2004

Network Management Outsourcing Agreement





  (d) advise BSP of new technologies that may provide BSP business benefit or improvements in efficiency. The BSP will assess benefits and risks and work with Datec to include on the approved lists as appropriate;

  (e) ensure that Datec staff are trained and skilled on all current and new technologies for the managed Hardware and Software.

  (f) centrally monitor performance of infrastructure components, where possible, to identify performance degradation, capacity and Hardware/Software problems and respond to identified performance tuning, problems and capacity needs;

  (g) tune infrastructure components to ensure optimum operating performance to meet Service Levels.

  (h) provide assistance and support to BSP Personnel as required;



(i) provide in-depth (Level 1 and 2) technical support for operating systems, standard software (for Software problems or questions, defect and non-defect related). It includes problem tracking, problem source identification, problem impact (severity) determination, bypass and recovery support, problem resolution, management reporting and trend analysis and interfacing with other Suppliers on behalf of the BSP;

  (j) provide support, in accordance with the BSP, manufacturers and vendors procedures;

  (k) install, set up and maintain configurations, to deliver the required Services;

  (l) coordinate and recommend system upgrades to BSP, and work with them in recommending proper hardware configurations and upgrades based on performance and capacity planning guidelines;

  (m) schedule and coordinate testing of network systems Software changes with the BSP   2.5 Network Virus Management -WAN

Datec will assist in detecting, fire-walling and blocking propagation of network viruses but are not responsible for virus detection or outbreaks that occur within the banks local area network. Datec will assist the BSP when requested to handle any virus issues that fall out side the scope of this agreement as per the terms of this agreement.   2.6 Internet Services

Datec will provide in accordance with BSP requirements Internet Services and follow on support as currently provided to the BSP under Datec's customer ISP services policy.   2.7 Management Tools

Datec will:

2.7.1 Install, configure and test the selected management tools used to support problem management (e.g. to generate automatic alerts for critical outages)   Commercial in Confidence   Page 14   May 2004

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2.7.2 Install, configure and test the selected management tools used to support performance and capacity management (e.g defining alert thresholds and performing notification)   2.8 Document Management

Datec will:

2.8.1 in a mutually agreed format provide documentation, configuration details or other data necessary for the BSP to perform their various business activities and functions;

2.8.2 provide such information that may be necessary to enable the BSP to develop Strategy and Architecture policies and guidelines, undertake benchmarking of Services provided and perform applications development functions.   2.9 Related Software Distribution

Datec will:

2.9.1 upon request from the BSP, distribute and implement software upgrades, software patches to the distributed network equipment as necessary to meet BSP's business requirements

2.9.2 ensure that software distribution windows are managed to ensure that minimal distribution impacts business operations and performance unless otherwise agreed with the BSP

2.9.3 ensure that the software installed are appropriately licensed;

2.9.4 ensure that all software distributions are reconciled to ensure completion;

2.9.5 ensure that all software distributions are virus free;

2.9.6 assist BSP End Users in performing any such upgrades that should be required. Such assistance will be provided via a Help Desk and may result in the dispatch of a support person to the End User location

2.9.7 inform BSP and take corrective action, as appropriate, for failed software distributions and problems resulting from software distribution.

2.9.8 take corrective action to overcome failed or problematic software or data distribution. Datec will fallback to previous (original) release of the affected software.

2.9.9 de-install software, as directed by the BSP, and remove it and any associated documentation to an area designated by the BSP; and

2.9.10provide verification of each completed software distribution, installation or de-installation, and update the asset management and software license management system(s) for that Software Supplier.   Commercial in Confidence   Page 15   May 2004

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2.10 Technology (Equipment) Refresh Planning And Implementation

Datec will be responsible for liaison with managed third parties (MTP's) in the procurement and management of installations, and deletion of and Tracking Network Services within the Network under instruction from BSP. Such responsibilities will include:

  (a) Management of the installation of Network Services;

  (b) Procurement of upgrades, changes or deletion of Network Services, as appropriate to accommodate BSP's changing requirements;

  (c) interfacing with the appropriate Network Services providers for problems related to Network Services; and

  (d) tracking relevant Network Service information .

Datec will be responsible for supporting, administering, managing and performing provisioning of Equipment and Equipment Software comprising the Network. Unless specifically exempted, the equipment is to be supplied by Datec and invoiced for payment according to Datec's normal terms of trade.

Datec will:

  (a) install Network Equipment and Equipment Software and monitor the fulfilment of each order for accuracy;

  (b) store, deliver and unpack all items of Equipment and remove and dispose of all packaging;

  (c) configure, install and test all Equipment and Equipment Software and transfer data and Equipment Software configurations as required prior to commissioning in the production environment

  (d) provide connectivity for the Equipment and Equipment Software at, or prior to, the time of installation;

  (e) remove BSP Equipment Software from displaced or retired Equipment to the extent required by BSP's security procedures;

  (f) remove displaced or retired Equipment and Equipment Software; and

  (g) ensure BSP is aware of all needs to promptly disconnect and end Network Services and remove related Equipment no longer needed by BSP upon termination of Services at a Site. Datec agrees to remove the applicable Equipment.   2.11 Performance Management

Datec will:

2.11.1monitor, measure, and report on the performance of the WAN environment;

2.11.2 enhance and continuously improve its performance of the Services;   Commercial in Confidence   Page 16   May 2004

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2.11.3 identify and recommend product and enhancement opportunities for improved performance;

2.11.4monitor, measure, analyse and report actual systems performance;

2.11.5 recommend changes to the Applications Software for BSP approval to improve system performance;

2.11.6 investigate and correct reported or observed system performance degradation or malfunctions and record for each the downtime, hardware or Software involved, nature of the problem, causes, nature of the fix and product provider. Such fixes will be completed within agreed service windows;

2.11.7monitor and report on capacity inadequacies;   2.12 Capacity Management

Datec will:

  (a) provide additional capacity as required to meet moves, adds and change (MAC) requests;

  (b) provide capacity to meet project requirements as required in conjunction with the BSP

  (c) monitor WAN infrastructure capacity and plan and implement sufficient infrastructure capacity as agreed with the BSP to meet BSP requirements and applicable Service Levels.

  (d) on an ongoing basis, manage the capacity of the environment to meet its obligations under the Service Levels and respond to BSP's operational requirements as they evolve over time;

  (e) monitor and report on Equipment capacity utilisation as it relates to established capacity thresholds, on a continuing basis and upon request by the BSP

  (f) monitor and measure the physical capacity and performance of the environment and report to the BSP when requested;

  (g) upgrade, remove, or add capacity to the environment as necessary to meet BSP's requirements; and

  (h) participate in joint capacity planning reviews with the BSP

Should it be determined that extra capacity is required this cost will be meet by the BSP working with Datec.   Commercial in Confidence   Page 17   May 2004

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2.13 Managed Third Parties (MTP)

In accordance with the Agreement, Datec will co-ordinate Managed Third Parties (MTP) where agreed with the BSP.

Datec will:

  (a) manage Third Parties, including monitoring operational day-to-day Network Service delivery, monitoring performance, escalating events for resolution, and maintaining technical support relationships;

  (b) work with BSP to establish and manage new and existing contractual relationships between BSP and MTP as needed to provide the Services;

  (c) escalate MTP performance failures to MTP management as necessary to achieve timely resolution as per the SLA;

  (d) monitor and Manage the MTP's efforts to remedy a failure;

  (e) communicate to designated personnel the status of MTP's efforts to remedy a failure.   2.14 Moves, Adds And Changes (MACs)

As a component of the base fee Datec will perform any required MACs that fall within the scope of work contained in this agreement.

Datec will also be required to provide MACs to the BSP with pricing and costs for tasks that fall outside the agreement such as project management or the acquisition of new equipment or upgrades but not just restricted to these items.

On approval of any MAC Datec will be required to assist in the supervision, management and implementation of changes related to the Network and the Services as necessary to satisfy BSP's business and operational requirements.

Datec will:

  (a) receive, log and track the completion of service requests and provide related information to the IBM Help Desk and billing system;

  (b) schedule the execution of the MAC;

  (c) for MACs, dispatch and manage the performance of appropriate technicians;

  (d) coordinate and communicate with designated personnel concerning scheduling and requirements, so as to eliminate the business impact on end users;

  (e) provide the necessary technical support to complete the MAC;

  (f) physically move Equipment, as required, and install any necessary in-scope cabling where appropriate;

  (g) notify the BSP contact person of completion of the MAC;   Commercial in Confidence   Page 18   May 2004

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  (h) confirm correct implementation of the MAC with the designated personnel and the BSP Help Desk, as appropriate;

  (i) track the completion of the MAC in a management system by updating relevant inventory and configuration information.   2.15 Help Desk Services

Datec will

2.15.1

provide a single-point-of-contact (SPOC) Help Desk. The Help Desk will support and have access to, and maintain, sufficient information that will facilitate knowledge of the BSP's business and technology environment;

2.15.2

provide one primary Help Desk contact phone number and enable contact fax, e-mail and browser for all technology requests. This includes, but is not limited to, communication faults, Hardware and Software failures, and general enquiries by the BSP.

2.15.3   record, analyse and report on a regular basis, as and when required by the BSP, on calls received by the Help Desk, including details of:

  •   call volumes and duration;

  •   problem trends;

  •   call abandon rate and wait times;

  •   Level 1 resolution rate;

  •   problem resolution time;

  •   provide Level 1 support for any end user IT problem;

  •   resolve problems at the first level, to decrease resolution times;

Provide Help Desk support, which includes:

  •   recording all problem calls, inquiries and requests for service;

  •   gathering the end user information;

  •   obtaining resource status;

  •   accessing on-line information;

  •   responding to end user requests with accurate and appropriate information;

  •   handling routine Hardware, Software, and usage problems;   Commercial in Confidence   Page 19   May 2004

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  •   transferring calls to the appropriate support group, although coordination and ownership of the problem and escalation management remains with the Level 1 support;

  •   opening the problem record and providing the end users with a unique problem identifier (e.g. number);

  •   informing the end user of the status;

  •   calling the end user for further information;

  •   closing the call, with the end user's agreement and ensuring end user survey is completed;

  •   escalating delays in problem resolution;

  •   notify users of system unavailability (scheduled and non-scheduled);

  •   report all suspected viruses to the BSP in a timely manner; and

  •   assist the BSP in removing viruses   2.16 Hardware, Software And Equipment Support

Datec will:

  (a) process warranty claims, as applicable;

  (b) coordinate and schedule maintenance activities with the BSP and third parties;

  (c) ensure that maintenance personnel follow documented recovery procedures;

  (d) maintain accurate documentation on the current location and status of Hardware and Equipment under repair;

  (e) update the problem management and asset management systems with relevant maintenance information;

  (f) diagnose and resolve complex network, operational and Software problems;

  (g) provide trouble shooting and problem resolution for all managed Hardware, Software, and Equipment;

  (h) provide Software and Equipment support including trouble shooting for problem determination;

  (i) resolve problems with long term fix or if problem cannot be resolved within an acceptable time frame, an alternative solution must be available in order to get the BSP working with the long term fix implemented at a later time;

  (j) identify and resolve user Hardware and Equipment problems including the management and execution of any Service Levels agreed in third party vendor maintenance agreements in place currently or in the future;d   Commercial in Confidence   Page 20   May 2004

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  (k) provide end user support and problem resolution for Software;

  (l) coordinate with other parties as necessary to resolve Hardware and Equipment problems;

  (m) order new Hardware and Equipment and schedule installation;

  (n) interface with Hardware and Equipment vendors for planning and problem resolution.   2.17 User Logon And Password Administration for Wide Area Network (WAN)

2.17.1Datec will provide a central point for the generation of new user logons and passwords as agreed with the BSP.

2.17.2Datec will reset passwords and perform logon ID administration in accordance with BSP's security guidelines.

2.17.3User logon and password administration include providing access and administering passwords for firewalls and internet requirements.   2.18 Project Services

Datec will provide project services as agreed with the BSP that fall outside the scope of this document.

2.18.1Datec will execute Projects according to the following guidelines: All new projects, new Requests for Service (RFS), and work considered out- of-scope of day-to-day operations will be treated as competitive

2.18.2BSP will ask Datec for a quote based on a Scope of Work

2.18.3Datec is to provide a relevant quote to the BSP Customer Business Manager (CBM)

2.18.4Quotes will be approved by the BSP CBM, who will then notify Datec.

BSP Customer Business Manager (CBM) contact details:

[*****]

[*****]

[*****]

[*****]

[*****]   Commercial in Confidence   Page 21   May 2004

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2.19 Asset Management

  2.19.1 Datec will assist the BSP in the ongoing management of an inventory of Equipment, Equipment Software and Network Services comprising the Network. Such inventory will record, Site locations and Equipment configuration (including hardware components and operating system software) as applicable to the Equipment, Equipment Software and Network Services in an agreed format.

  2.19.2 Datec will provide updates to the inventory that result from other processes including performance management, fault management, configuration and capacity planning. Updates from these processes will be tracked through work order activity. Datec will provide BSP with changes to the inventory in an agreed format.

Datec will:

  (a) within 30 days from each Site Acceptance Date, provide the necessary information to populate the inventory management database with information regarding that Site;

  (b) provide updated inventory data on a weekly basis as a result of performance management, fault management, and MAC activity; and

  (c) manage an inventory of spares made available for the purpose of facilitating the maintenance of critical Service components.   2.20 Security Services

As set forth below, Datec will manage physical security for the Network as necessary to satisfy BSP's business and operational requirements. Datec will be responsive to BSP changes in its physical Network security requirements as they may change over time. Datec will comply with relevant BSP information security policies, and government regulations. With respect to this responsibility,

Datec will:

  2.20.1 on an ongoing basis, identify Datec subcontractors and Personnel who are to be granted access to specific operations or BSP facilities related to the Services;

  2.20.2 follow a standard equivalent to the BSP physical security standard for the Network. If Datec security standards provide a greater degree of security, Datec will follow Datec standards for the Network;

  2.20.3 follow all security procedures in effect at the Installation Sites. BSP is responsible for site security at the Sites;   Commercial in Confidence   Page 22   May 2004

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  2.20.4 immediately report breaches of security evident during site visits to BSP. Such breaches are to include all unauthorised attempts to use or obtain physical access to BSP Network resources and information;

  2.20.5 for facilities under BSP's control, comply with BSP's physical security standards of which Datec receives reasonable advance written notice.   2.21 Business Continuity Planning (BCP) And Disaster Recovery Plan (DRP)

Datec will adhere to the BSP's DRP policy and procedures and will assist wherever possible to further enhance these within the scope of this agreement.   2.22 Change Management

Change management is both a communications process and a methodology that seeks to introduce change into any environment without adversely impacting service delivery and commitments and will usually be associated with a MAC document.

Datec will perform the change management functions below:

  (a) accept and enter authorised change requests into an information system for the purpose of tracking changes to the environment in accordance with the BSP processes, procedures and methodologies;     (b) for each change affecting the environment the Supplier will:

  (i) assess the necessity and impact of the proposed change on performance, connectivity and overall operation;

  (ii) in conjunction with BSP, develop acceptance test criteria and test the change;

  (iii) work with BSP to resolve acceptance test issues;

  (iv) schedule and manage testing and implementation of the change, including communication to and coordination with other affected functions in accordance with the change management procedures;

  (v) with BSP assistance, verify the successful implementation of the change. Notify the change requestor and customers of the outcomes following the change implementation;

  (vi) ensure diligence is applied in deciding upon time of day and day of week for implementation of change so that provision of service is continued;

  (vii) ensure all potential and/or actual business impacts expected as a consequence of the implementation of change are communicated to and understood by the BSP

  (viii) ensure potential conflicts between changes are identified and resolved in advance of implementation; and   Commercial in Confidence   Page 23   May 2004

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  (ix) ensure changes are bundled to ensure Services are not subject to more outages than are sensible or necessary.   2.23 Backup Requirements

Datec Will:

  (a) ensure that network configurations and O/S are fully backed up so that they can be reinstalled without delay in an emergency.

  (b) assist with the installation and decommissioning of equipment and associated hardware and software;

  (c) assist with the facilitation of scheduled hardware maintenance;

  (d) assist with the physical placement and movement of hardware, cables, connectors and installations;

  (e) maintain and distribute configuration diagrams and associated documentation;

  (f) assist with testing the recovery procedures required to re-establish, in the event of a failure, the functionality of systems included in the agreement, in compliance with BSP's requirements;

  (g) prepare, test and document backup and recovery procedures for both Datec and BSP

  (h) maintain the physical environment, and all equipment, in a safe and clean manner and in accordance with equipment vendors specifications.

  (i) manage physical site security in accordance with Datec and BSP security policies;

  (j) implement recovery processes and procedures, as required to ensure timely recovery following any environmental failure;

  (k) ensure regular testing of Datec's environmental components (eg. fire alarms, generators, UPS, etc); and

  (l) keep all equipment in good operating condition in accordance with equipment specifications, and such other performance criteria as contained in this Agreement so as to be able to effectively perform to specification.   2.24 Designated Locations

Datec will manage the BSP WAN operations from its Corporate Head Office located in Waigani Drive, Port Moresby.

In order for this to occur certain routers/switches and associated network equipment will be located at Datec   Commercial in Confidence   Page 24   May 2004

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The Current Router and Switch Locations that will be covered by this agreement are:         [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]       [*****]

Performance Standards

3.1 General Requirements

Throughout the term of the agreement Datec will:

  (a) meet or exceed the Service Levels identified within the service level agreement.

  (b) comply with industry standards; and

  (c) Datec will also maintain the BSP quality assurance procedures where applicable and agreed between the parties.   3.2 Measurement And Monitoring Tools

Datec will:

  (a) perform all Service Level reporting, in a manner acceptable to the BSP   Commercial in Confidence   Page 25   May 2004

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  (b) implement further automated measurement, monitoring tools and procedures as advised by the BSP to measure and report Datec's performance on a monthly basis should the existing tools be inadequate. The acquisition of new tools will be subject to a MAC and approval by the BSP for their acceptance of costs and purchase.   3.3 All Data And Supporting Information Confidential

Detailed supporting information and reports relating to service levels and performance will be confidential between the two parties.

Both parties will treat the terms of this agreement and any supporting documentation, such as emails, facsimiles and the like as confidential and may only disclose it:

  (a) to officers and employees who have signed a confidentiality agreement that imposes on that person confidentiality obligations and who:

  (i) have a need to know (and only to the extent that each has a need to know); and

  (ii) have been directed and have agreed to keep confidential the Confidential Information on terms consistent with this Statement of Work; or

  (b) to the extent, and to the persons, required by law.

Reports

4.1 Reporting

Datec is to provide a range of reports and/or data required to develop such reports in an agreed format to the BSP or its nominee on daily, weekly, monthly and ad hoc basis as requested by BSP.

Datec will undertake the following functions:

  4.1.1 respond to user report enquiries

  4.1.2 follow up errors with areas providing the source data

  4.1.3 manage reporting platform   4.2 Types Of Reports

Datec will make available to the BSP

  4.2.1 the reports identified in this document and the Service Level Agreement   Commercial in Confidence   Page 26   May 2004

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  4.2.2 the reports and documents which were provided by the BSP prior to the Commencement Date

  4.2.3 each month such reports as are necessary to ensure and validate the Supplier's performance and commitments made under the Service Level Agreement and

  4.2.4 such other reports as may be specified by the BSP from time to time.   4.3 Structure Of Reports

Datec must structure performance reporting so that it can be readily communicated to the management or end-user, business areas and business system owners in a mutually agreed format.

Personnel

5.1 Standards Of Datec Personnel

Datec will:

  (a) use an adequate number of Personnel to supply the Services outlined in this agreement

  (b) ensure all Personnel who perform Services are properly educated, trained and fully qualified for the Services they perform;

  (c) ensure that all Personnel comply with:

  (i) any protocols, codes of conduct or procedures specified by the BSP and advised by from time to time

  (ii) ensure any obligations under this agreement in respect of Confidential Information, Personal Information, data security and material

  (iii) all Laws; and

  (iv) any policies existing or introduced from time to time, including policies regarding occupational health and safety requirements, building access and physical security;     (d) comply with any authorisation procedures specified in this agreement before:

  (i) assigning any person to supply Services; or

  (ii) permitting that person to enter any premises of Datec or BSP, to handle any material or become aware of any Confidential Information or Personal Information; and

  (iii) ensure that only Datec Personnel who are currently authorised are involved in supplying the Services or given access to any BSP Material, Confidential Information or Personal Information.   Commercial in Confidence   Page 27   May 2004

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5.2 Replacement At BSP's Request

BSP may by notice to Datec, require Datec to replace any of the Supplier Personnel for the reasons stated in the notice and:

  i. in the case of breaches of security or confidentiality requirements, Datec must immediately replace that person with another person of suitable ability and qualifications; or



ii. in any other case, after receipt of that notice, Datec will have 48 hours in which to investigate the matters stated in the notice, discuss its findings with the BSP and resolve any problems with the person. If, following that period the BSP requests replacement of the person, Datec must replace that person, within 60 days with another person of suitable ability and qualifications.   5.3 No Right To Require Termination

BSP does not have the right to require Datec to terminate any person's employment or contract with Datec. It is only intended to give the BSP the right to require that Datec discontinue using a particular person in the performance of Services for the BSP.   5.4 Restraints On Engagement Of Datec - BSP Personnel

From the Commencement Date of the agreement both parties must ensure that they do not without mutual written consent solicit, entice or attempt to entice away any employee from either organisation during the Term and for 1 year after the termination date.   5.5 Enforceable Restraint

Clause 5.5 will not in any way restrict either organisation from hiring any person who has responded to any published advertisement of position or who has otherwise approached either organisation for employment unsolicited or its agents or Related Corporations.   5.6 Employer Obligations

Datec must ensure that it, and each of the approved subcontractors and employee's complies with all obligations relating to payment of tax instalment deduction, deductions from prescribed payments, fringe benefits tax, training guarantee levy, superannuation, payroll tax and any other taxes or levies imposed upon an employer which arise in respect of any amounts paid to the Datec under this agreement and that it complies with all requirements imposed on an employer under the relevant legislation to keep records, lodge returns and provide information in relation to such obligations.   Commercial in Confidence   Page 28   May 2004

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5.7 Security And Occupational Health And Safety

Datec must at all times comply with and ensure that its personnel and approved subcontractors comply with the laws and regulations on occupational health and safety.

Audits And Record Keeping

6.1 Record Keeping

Datec must keep, and must require subcontractors to keep, adequate accounts, documents and records to the extent required by the BSP as advised and in sufficient detail to enable Datec's compliance with this agreement and the accuracy of its invoices to be determined.   6.2 Access To Datec's And Subcontractors Premises And Material

Datec must give, and must ensure that its Subcontractors give, BSP and their Personnel, (including internal and external auditors and advisers) full access at all reasonable times and on reasonable notice to:

  (a) any premises at which or from which Datec supplies the Services

  (b) the Supplier Personnel; and

  (c) equipment, Software systems, data, accounts, documents and records relating to the Services provided both by Datec and by its Subcontractors, but excluding information relating to the Datec's internal costs and margins for the Services,

in order to enable the BSP to audit Datec's compliance with this agreement and for operational risk reasons.   6.3 Regular Audits For BSP Reporting

The BSP itself may also audit the Supplier's (and its subcontractors) records relevant to the supply of the Services for any reasonable purpose including processes, procedures and performance for operational risk assessment, regulatory requirements and annual reporting.   6.4 Assistance

For the purpose of complying with this clause, Datec must promptly and efficiently give the BSP and their Personnel any assistance they reasonably require, including, if requested, installing and operating audit software. BSP and their Personnel will comply with Datec's reasonable security requirements.   Commercial in Confidence   Page 29   May 2004

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Subcontractors

Datec may only subcontract its obligations under this agreement as follows:   7.1 Approval

Datec must obtain the BSP's approval for any subcontracts but may do so without its consent if:

  (a) it is in the ordinary course of business

  (b) Datec supplies BSP with advance notice

  (c) it does not result in a material change in the way Datec conducts its business

  (d) it does not adversely affect the BSP   7.2 Terms

The terms of any subcontract must be consistent with this agreement, unless the BSP agrees otherwise, including:

  i. confidentiality and intellectual property obligations;

  ii. BSP's approval rights (which must apply directly to the subcontractor);

  iii. compliance with BSP's policies and directions;

  iv. indemnities that protect BSP

  v. termination and disengagement rights; and

  vi. key personnel.

Pricing

8.1 General Principles

The BSP will pay Datec a base fee plus any other fees and charges that may be agreed too during the term of the agreement but excluding, travel, freight and tax related matters.

BSP will be responsible for any freight and or related travel costs incurred by Datec in the execution of the services as defined in this agreement. Prior to undertaking or committing to any freight and or related travel costs Datec must first obtain approval from BSP.   8.2 Base Fee

The base fee includes all things necessary to manage the WAN management services as provided for by the terms of this agreement.   8.3 Price Inclusive

The base fee includes all costs, expenses, taxes (except for GST/VAT), duties, levies or imposts relating to the services and Datec's performance of its obligations under this agreement.   Commercial in Confidence   Page 30   May 2004

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8.4 Pricing Criteria

Each month Datec will provide the BSP with an invoice including:

  (a) 1/12 of the Base Charge for the service

  (b) pass through expenses for the month

  (c) the annual Base Charge/s once established may still be adjusted from time to time by agreement between the parties.   8.5 Rebates

  1. Should Datec not achieve the agreed Service Levels contained in the Service Level Agreement as detailed in Schedule B, a monthly rebate will be applied as per the Rebate Table in Pricing Schedule C,

  2. Rebates will apply to Severity Levels One (1) and Two (2) during the agreed business hours detailed in Schedule B.

  3. The maximum rebate in any given month will be 50% of the monthly base fee. The rebate calculation will be completed before the 15th Day of the following month for the preceding month together with supporting monthly reports and provided to the BSP.

  4. For the purposes of determining SLA achievement the Time to Respond measurement will be used.

The following definition will apply:

Time to Respond means, the time between the problem being logged and the customer being given a job number and the technician beginning the job As this applies to Severity Levels One (1) and Two (2) this will also include the informing of Datec's senior operational management.

Pricing Adjustments

9.1 CPI Adjustments

No later than 30 days after the end of each contract year the Base Fee must be increased or decreased in accordance with the increase or decrease in the CPI and such increases or decreases will be calculated by using the following formula:

R2 = R1 x New CPI   Old CPI

Where:

R2 = the Base Fee payable for the relevant 12 month period of the Term

R1 = the Base Fee specified the previous year.

New CPI means the last published CPI for a complete quarter ending prior to the date of commencement of the relevant 12-month period of the term.

Old CPI means the last published CPI for a complete quarter ending prior to the date of this agreement.   Commercial in Confidence   Page 31   May 2004

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Should the CPI increase exceed more than 10% in any given year the maximum amount applied will be 10% or which ever is lower.   9.2 Pass - Through Expenses

These are expenses to be paid directly by the BSP with no margin or mark up added by Datec. Datec must provide the BSP with all information and material reasonably required to validate a pass through expense.   9.3 Service Level Reviews

The BSP may conduct a service level review at least once per 12-month period or as required with the agreement of Datec.

At least annually the parties will review the Service Levels to determine whether they still reflect the requirements of the BSP. Should the BSP decide that they do not, the BSP may:

  (a) conduct benchmarking on the relevant Services to establish appropriate service levels

  (b) require Datec to propose a means of improving performance.

Extraordinary Events

10.1 Extraordinary Events

The BSP may notify Datec that an Extraordinary Event has occurred or is likely to occur and provide details of such Extraordinary Event.

On receipt of such notice, Datec must promptly determine and report to the BSP the effect on:

  (a) the level of resources required to provide the Services ('Required Resources'); and

  (b) the Fees as a result of the Extraordinary Event.

The parties must use their efforts to agree on the level of required resources and, having agreed, will adjust the agreement accordingly to reflect this change. This will include the adjustment of the base fee and a suitable implementation plan.

Confidentiality

11.1 Confidentiality

All information exchanged between the parties under this agreement or during any negotiations undertaken at any time in respect of this agreement is confidential to those parties and must not be disclosed to any persons except:

  (a) as required by any law of the state of Papua New Guinea

  (b) to legal advisers, auditors, accountants and other consultants of either party requiring information for the purpose of this agreement

  (c) to directors and shareholders of the respective parties

  (d) with the consent of the party that supplied the information   Commercial in Confidence   Page 32   May 2004

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  (e) if the information is generally and publicly available other than as a result of the breach of confidence by the person receiving the information.

Returning Material, Data, Hardware, Software And Information

12.1 Datec's Obligations

Upon request from the BSP or at the end of the disengagement period Datec must:

  (a) promptly return all BSP data, physical and written records, hardware, software or any other medium whatsoever

  (b) if requested by the BSP destroy any relevant information and certify in writing that it has done so.   12.2 BSP's Obligations

At the end of the disengagement period the BSP will transfer any material, data, hardware, software and information from Datec to its chosen new location. Datec will assist where possible. The disengagement period will be as determined under Section 14 (Termination) of this agreement.

Compliance With Laws

13.1 Compliance

This agreement will be constructed in accordance with the laws of Papua New Guinea and the parties submit to the non-exclusive jurisdiction of the National Court of Justice of Papua New Guinea.

Termination

14.1 Termination By BSP for Cause

If so advised the BSP may terminate this agreement by giving written notice to Datec if:

  (a) Datec materially breaches the agreement and the breach (Material Breach) cannot be, or is not, rectified within 30 days after a notice from the BSP,

  (b) an Insolvency Event occurs in relation to Datec

  (c) any other event specified in this agreement as giving rise to a right for the BSP to terminate immediately occurs; or

  (d) Datec commits a series of breaches that together constitute a Material Breach.   14.2 Termination For Change Of Control

The BSP may after giving due consideration to all circumstances and not acting unreasonably, terminate this agreement by giving written notice to Datec if there is a change of control or major shareholding of Datec.   Commercial in Confidence   Page 33   May 2004

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In the case of the BSP requiring termination under this clause, the BSP will use its best commercial efforts to ensure that it gives due consideration to all the circumstances and does not act unreasonably in demanding such termination.

If the BSP gives such a notice of termination, then:

  (a) if the change of control:

  (i) results in a competitor of the BSP controlling Datec or

  (ii) is reasonably likely in the BSP's opinion, to have a detrimental effect on Datec's ability to provide the Services in accordance with the agreement,

then the BSP will pay Datec according to Section 14 - Termination of this agreement and the Termination Table in Schedule C.   14.3 Termination By BSP For Convenience

The BSP may terminate the whole or any part of this agreement for convenience at any time by giving Datec at least 6 months prior written notice.   14.4 Termination By Datec For Convenience

Datec may terminate the whole or any part of this agreement for convenience at any time by giving the BSP at least 6 months prior written notice.   14.5 Termination Fee

If the BSP terminates under clause 14.3 (Termination by BSP for Convenience) the BSP will pay Datec the Termination Fee calculated in accordance with Attachment C (Pricing).   14.6 Sole Remedy

The amount payable by the BSP under clause 14.3 (Termination Fee) will be Datec's sole remedy for the BSP terminating for convenience.   14.7 Mitigation

Datec must mitigate the cost of termination, including by using its best efforts to:

  i. redeploy personnel used to provide the Services

  ii. terminate contractors in accordance with the terms of their contracts so as to avoid any liability to pay compensation for early termination; and

  iii. redeploy any equipment used to provide the Services that is not acquired by the BSP   Commercial in Confidence   Page 34   May 2004

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General Indemnities

15.1 Indemnity By Datec PNG LTD

Datec must indemnify, defend and hold harmless the BSP, their employees, agents, successors and assigns, from any and all Damages arising from, in connection with, or based on allegations of, any of the following:

  (a) Datec's breach of;

  (i) any representation and warranty specified in this agreement or

  (ii) its obligations with respect to BSP Confidential Information

  (b) any claim, demand, proceeding or other action ('Claim') arising out of or related to occurrences Datec is required to insure against     (c) any Claim arising out of or in any way relating to:

  (i) Datec,

  (A) engaging a contractor; or

  (B) employing or terminating the employment of any person,;

  (ii) any fraudulent act or omission, or any fraudulent misrepresentation or deceit by Datec, its Personnel or subcontractors in connection with this agreement; or

  (iii) a decision by the BSP not to approve a subcontractor or to revoke its approval for an Approved Subcontractor under the agreement

  (d) any Claim whether or not the BSP is liable at law for the amount the subject of the Claim, which maybe made against the BSP by, or on behalf of:

  (i) the Tax Office in respect of any payroll tax or penalties that the office may seek to recover from the BSP in respect of any amounts paid to Datec under this agreement

  (ii) any revenue raising authority including the Commissioner of Taxation in respect of any other payment, liability, or penalty that the authority may seek to recover from the BSP in respect of any amounts paid to Datec under this agreement;     (e) any Claim arising from:

  (i) the Acquired Assets or

  (ii) managed Third Party Agreements to which Datec is or becomes a party as a consequence of the operation of this agreement; and   Commercial in Confidence   Page 35   May 2004

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  (iii) any Claim arising from any breach by Datec of its obligations under this agreement.   15.2 Enforcement Of Indemnities

It is not necessary for a party to incur expense or make payment before enforcing a right of indemnity conferred by this agreement.

Personal Injury, Property Damage Indemnity

16.1 Datec Indemnifies BSP

Datec indemnifies the BSP against all Damages that the company may sustain or incur (including those sustained or incurred as a result of a claim by a third party against the BSP as a result of:

  (a) any injury to or death of any person arising out of or in any way relating to this agreement; or

  (b) damage to any real or tangible property,

caused by an act or omission of Datec or its personnel   16.2 BSP Indemnifies Datec

The BSP indemnifies Datec against all Damages that Datec may sustain or incur (including those sustained or incurred as a result of a claim by a third party against Datec or any related company as a result of:

  (a) any injury to or death of any person arising out of or in any way relating to this agreement; or

  (b) damage to any real or tangible property,

caused by an act or omission of the BSP or its personnel.

Risk Management

17.1 Insurance Coverage

The BSP will provide full comprehensive replacement insurance cover for all assets contained in the Asset Register (Schedule A).   Commercial in Confidence   Page 36   May 2004

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17.2 Terms Of Insurance

The BSP will provide documentary evidence to Datec that such insurance is in place for the term of the agreement.

Datec will not be held liable for service level deficiencies related to insurance issues or an Act of God. Both parties agree to work together to resolve any such issues.

General Conditions

18.1 Assignment By Datec

Datec must not assign this agreement or any right under this agreement unless Datec

  (a) is not in breach of this agreement;

  (b) obtains the prior written consent of the BSP

  (c) ensures that the assignee agrees to be bound by all of the Datec's obligations under this agreement; and

  (d) acknowledges that it remains bound by this agreement   18.2 Assignment By BSP

BSP may:

  (a) assign all or part of this agreement to any person as part of a restructure; and

  (b) assign or novate all or part of the rights and obligations under this agreement to any of the BSP's Related Company's as part of a re- organisation of its business.   18.3 Governing Law

This agreement will be construed in accordance with the laws of Papua New Guinea and the parties submit to the non-exclusive jurisdiction of the National Court of Papua New Guinea.

Dispute Resolution

19.1 Notice

A party claiming that a dispute, difference or question arising out of this agreement (Dispute) has arisen must notify the other party in writing giving details of the dispute.   19.2 Escalation

Senior executive managers of both companies must meet together to negotiate in good faith with a view to resolving the dispute.   Commercial in Confidence   Page 37   May 2004

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19.3 Expert Determination Or Mediation

If the parties cannot resolve the Dispute within 30 days after the Notification, the parties must refer the Dispute to:

  (a) Expert determination or

  (b) Mediation

the cost of which will be at either parties own cost   19.4 Expert Determination Criteria

If a Dispute is referred for expert determination the expert must make a determination by reference to what is reasonable in the context of the overall service delivery environment but taking into account best practice standards and relevant benchmarks in Papua New Guinea.

Expert determination must be completed by a mutually acceptable independent expert such as an accountant, computer expert or other person/s as agreed between the parties to assist in the resolution of any such dispute with knowledge of the operating conditions within Papua New Guinea.

But whose decision will not be binding on the parties.

Neither party may terminate this agreement pending the decision of such expert, but either party may approach the court for urgent relief if it is though desirable   19.5 Selection Of Expert Or Mediator

The parties will attempt to agree an appropriate expert or mediator. If they are unable to agree either party may at its own cost, request the president of the Law Society of Papua New Guinea to appoint a suitably qualified person to decide the dispute and determine the cause of action which best meets the objectives of the parties under or in the context of this agreement.

That person will act as an expert and not as an arbitrator and the decision or determination must, so far as practicable, be made within 21 days of the request

The expert may request either of the parties to appear before him or to provide a written explanation as to the reasons for the dispute and as to the party's reasons for following a certain course of action.   19.6 Procedure

Each expert determination and mediation conducted in accordance with this clause will be conducted in accordance with the relevant sections of the this agreement and the appropriate laws of Papua New Guinea.

The parties agree that a determination made by an expert will not be binding on either party. Once a determination has been made, the parties will recommence negotiation to resolve the Dispute and if they fail may initiate court proceedings.   Commercial in Confidence   Page 38   May 2004

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Disengagement

20.1 Planning

The purpose of Disengagement is:

  (a) to enable the BSP or its nominee to perform the Disengaged Services from the end of the Disengagement Period; and

  (b) to eliminate or minimise any disruption to the Services (including the Disengaged Services) as a result of the handover of the Disengaged Services to the BSP or its nominee.

Datec must upon request from the BSP work with them to formulate a disengagement plan.

  (a) as part of the Disengagement Plan:

  (i) BSP's right to use any Software continues following Disengagement

  (ii) there is no degradation of service levels or quality of service during Disengagement;

  (iii) there is no interruption to the Services during Disengagement;     (b) the Disengagement Plan:

  (i) specifies the Datec Personnel and other resources that will provide Disengagement Assistance;

  (ii) specifies all things necessary to effect Disengagement as efficiently as possible as at the start of this Agreement to effect the transition to Datec;

  (iii) sets out a timetable and process for effecting Disengagement that will deal with each of the issues in this agreement and will enable the BSP to have completed Disengagement as quickly as possible without disrupting the quality of the Services; and

  (iv) contains all things necessary to ensure that Datec is able to comply with the clauses in this agreement.   20.2 Implementation Of Plan

Datec must ensure that, at all times during the agreement, on 60 days notice it is able to deploy all necessary resources to complete Disengagement in accordance with the agreed Disengagement Plan.

  (a) Datec must ensure there is no degradation of quality of service during Disengagement;

  (b) Datec acknowledges all Service Levels apply during Disengagement but subject to agreement of the viability of the Disengagement Plan   Commercial in Confidence   Page 39   May 2004

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  (c) Datec use its best efforts to ensure that the Disengagement Period ends on the intended date of termination for the Disengaged Services,

  (d) the BSP will be permitted (on its own or on behalf of its nominated third party) without interference from Datec (including counter- offers), to make offers to any Datec employees or contractors who were used solely or primarily by Datec to provide the Disengaged Services during the 12 month period prior to the commencement of Disengagement;

  (e) The BSP or its nominee will be permitted to acquire all of Datec's right, title and interest in any Equipment owned or leased by Datec or its Subcontractor that is used in the performance of the Disengaged Services

  (f) If the BSP appoints a third party to assume the BSP role in relation to any or all of the Disengagement, Datec must provide Disengagement assistance to that third party.   Commercial in Confidence   Page 40   May 2004

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EXECUTED as an agreement.

SIGNED SEALED AND DELIVERED by BANK SOUTH PACIFIC LIMITED by Garth Mcllwain its duly constituted Attorney in the presence of:

)



BANK OF SOUTH PACIFIC LIMITED by its Attorney who hereby states that at the time of his executing this instrument he has no notice of the revocation of the Power of Attorney Registered No. S.25458

AND I certify that the person executing this instrument is personally known to me   )   Under the authority of which he has executed this instrument   )     )

/s/ Illegible   )     /s/ Illegible Witness   )   Illegible Name (printed)   )

Signed for and on behalf of DATEC (PNG) LIMITED by the authority of the Directors and Management   )

/s/ Illegible   )   Signature of Authorised Officer   )

Financial Controller   )     Illegible Title   )   Name of Authorised Officer (Please Print)

/s/ Illegible    )     Illegible Signature of Witness   )   Name of Witness (Please Print)   Commercial in Confidence   Page 41   May 2004

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Schedule A:

Equipment List — Asset Register   Illegible   Illegible   Illegible   Illegible Daru   1721   Catalyst 1912   Fa/1 , E/1 and S/1 Klunga   1721   Catalyst 1912   E/2 Tabubil   1721   Catalyst 2950   E/1 and S/4 Kerema   1721     E/2 POM Admin 1   Cisco 3660   Catalyst 2912   Fa/2, S/10 and ATM/1 POM Admin 2   Cisco 3660   Catalyst 2912   Fa/2 and S/9 POM CC   Cisco 1721   Catalyst 2912   E/1 and S/2 Boroko CC   Cisco 3640   Catalyst 2950   E/2 and S/4 Ori Lavi   Cisco 805     E/1 and S/1 Waigani Drive CC     Catalyst 1912   E/1 and S/2 Security Base   Cisco 805   Catalyst 1912   E/1 and S/1 Gordons CC   Cisco 3662   Catalyst 2950 and Catalyst 1900   Fa/2 and S/12 Stores   Cisco 1605   Catalyst 1912   E/2 and S/1 Bunker nsc_adm1   Cisco 3660   Cataryst 3550   Fa/2, S/27 and ATM/1 Bunker nsc_adm2   Cisco 3660   Catalyst 3550   E/2 and S/8 Bunker NCD   Cisco 3640   Catalyst 3550   E/2 and S/16 Bunker EB   Cisco 3640   Cataryst 3550   E/2 and S/8 User Suppt   Cisco 1601     E/1 and S/1 Dev Suppt   Cisco 1601     E/1 and S/1 Waigani Junction CC     Catalyst 2924   Andersons Harbourside   Cisco 2610   Catalyst 2950   E/1 and S/1 TST 4 Mlle   Cisco 2610     E/1 and S1 Hitron         Commercial in Confidence   Page 42   May 2004

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Boroko Foodworld       Rainbow ATM Lobby   Cisco 805     E/1 and S/1 Jacksons   Cisco 805     E/1 and S/1 Alotau   1721   Catalyst 1912   E/1 and S/6 Popondetta   1721   Catalyst 1912   E/2 and S/2 Lae Town   Cisco 3640   Catalyst 2950   E/2 and S/11 Lae Market   1721   Catalyst 2924   E/1 and S/4 Lae CC   Cisco 2611   Catalyst 2950   E/2 and S/6 Lae - Vele Rumana   Cisco 805     E/1 and S/1 Eriku ATM Lobby   1721     E/1 and S/1 Bulolo   1721     E/2 Madang   1721   Catalyst 2924   E/2 and S/4 Madang - Beckslea Plaza   1721     E/2 and S/1 Wewak   Cisco 3640   Catalyst 1912   E/3 and S/4 Wewak ATM Lobby   1721     E/2 and S/1 Maprik   Cisco 806     E/2 Aitape   Cisco 806     E/2 Vanimo   1721   Catalyst 1912   E/2 and S/2 Kainantu   1721   Catalyst 1912   E/1 and S/2 Goroka   Cisco 3640   Catalyst 2950   Fa/1. E/1 and S/6 Bird Of Paradaise   Cisco 805     E/1 and S/1 Kundiawa   1721   Catalyst 1912   E/2 and S/2 Hagen   Cisco 3640   Catalyst 2924   E/2 and S/9 Hagen CC   Cisco 2611   Catalyst 1912   E/2 and S/10 Wabag CC   Cisco 2611   Catalyst 1913   E/2 and S/2 Wabag   Cisco 2611   Catalyst 2924   E/2 and S/2 Mendi   Cisco 2611   Catalyst 1912   E/2 and S/2 Lorengau   1721   Catalyst 1912   E/1 and S/1   Commercial in Confidence   Page 43   May 2004

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Kimbe   1721   Catalyst 2950   E/1 and S/4 Bialla   1721     E/2 Kokopo   Cisco 3640   Catalyst 2924   E/5 and S/B Kokopo IRO   Cisco 2611   Catalyst 1912   E/2 and S/6 Rabaul   1721   Catalyst 1912   E/2 and S/1 Kavleng   1721   Catalyst 1912   E/2 and S/2 Namatanai   1721   Catalyst 1912   E/2 Lihir   1721   Catalyst 1912   E/2 and S/3 Buka   1721   catalyst 1912   Fa/2 and S/2   Commercial in Confidence   Page 44   May 2004

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Schedule B

Datec Service Levels for BSP Networking Outsourcing Project

Services to be performed are defined in the Network Management Outsourcing Agreement. These include Data services, network services and internet services.

As referenced in Section 8.5 of this agreement, rebates will be applied as detailed in Pricing Schedule C, should Datec not achieve the agreed Service Levels. Rebates will apply to Severity Levels One (1) and Two (2) for all logged jobs during the agreed business hours contained in this agreement.   A. Helpdesk / Service Calls

1(a) During Business Hours (Monday to Friday 7.30 to 18.00)   Severity Level   Time to Respond   Escalation Time   Comments

1   15 minutes   1 hour   2   30 minutes   2 hours   3   1 hour   4 hours   4   8 hours   Next business day     Commercial in Confidence   Page 45   May 2004

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After hours assistance Monday through Friday will be available via the Datec Help Desk:

1(b). After Business Hours (Outside Business hours)   Severity Level   Time to Respond   Escalation Time   Comments

1   2 hours   3 hours   2   3 hours   4 hours   3   Next business day   Next business day   4   Next business day   Next business day     1(c). Severity Definitions   Severity Definitions Severity Level

Illegible   Illegible

2 High Impact

Required prompt corrective action. Product of service restricted. Business can operate at reduced capacity. Eg Less than 100 staff impacted, less than 10 branches / ATM's effected by the one event.

Illegible   Illegible   Commercial in Confidence   Page 46   May 2004

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1.1.1 B. Reporting   1.1.2   Report

1.1.3   Report Description   1.1.4   Frequency   1.1. 5   Delivery time   1.1.6   Distribution List

1.1.7

Start of Day Network Status Summary Report   1.1.8

Daily

1.1.9

08:00

1.1.10

1.1.11   Open / Closed Incident report   1.1.12  Daily   1.1.13   10:00   1.1.14

1.1.15

Network Utilisation Report

1.1.16

Weekly

1.1.17

17:00 (Friday)   1.1.18

1.1.19

Management Summary report

1.1.20

Monthly

1.1.21

17:00 (3rd Day of the month)   1.1.22

1.1.23

Details

Start of Day Network Status Summary Report

The report is to detail the status of all bank telecommunication circuits. For those circuits that are unavailable or service is impacted details of actions taken is to be included in the report.   Commercial in Confidence   Page 47   May 2004

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Open / Closed Incident Report

A summary of all calls logged to the Network Helpdesk, status and action taken.

Network Utilisation Report

The report is to provide graphical details of network utilisation statistics for all facets of the network inclusive of;

Banking Traffic

Internet Traffic

Line / Network availability statistics

Any anomalies are to be noted and appropriate commentary / recommendations made.

Monthly Management Report.

The report is detail in a summarised format Network and Operational performance for the month inclusive of;

Statistics of Incident Reports logged

Graphical presentation of Monthly Network Utilisation

Monthly Line / Network Availability Summary

SLA performance status

Staff Report

Management commentary.   Commercial in Confidence   Page 48   May 2004

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2. Managed Third Parties (MTP)

Datec will apply the appropriate severity level and take action as required with managed third party vendors when the resolution requires the involvement of a managed third party.

In the first instance Datec will liase with the managed third party vendor directly keeping records of the action for reporting purposes.

Should there be no successful resolution to this approach within the time durations within this SLA, Datec will escalate the matter directly to the BSP Customer Business Manager (CBM). In any event the CBM will be aware of the request to the MTP due to the daily reporting systems in place.

Once escalated to the BSP CBM, the BSP undertakes to take control of the liaison with the MTP to help Datec resolve the issue.   Commercial in Confidence   Page 49   May 2004

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Schedule C

Pricing Schedule   Annual Fees     Annual Base Fee   K3,524,322.00

Monthly Base Fee   K293,693.50   SLA Rebate Table                         % Of SLA Achieved   100%  95%  90%  85%  80%  75%

Monthly Rebate % applied   0%   10%  20%  30%  40%  50%

• Measured Monthly using the actual Response and Escalation times for logged jobs verse the agreed service times contained in the SLA in Schedule B

• Applies to Severity Levels 1 & 2 during normal business hours

• Maximum rebate will be 50% of the monthly base fee   Termination Fee Table

Contract Term Completed   0-Yrl  1-Yr2  2-Yr3  3-Yr4  4-Yr5  5-Yr6

% of Annual Base Fee Payable   50%   40%   30%   20%   10%   0%

Note: The Annual Base Fee will be adjusted in accordance with Section 9.1, CPI Adjustments, of this agreement   Commercial in Confidence   Page 50   May 2004

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Schedule D

Change Control Form (For MAC's)

Change Control Form

This form must be created as soon as the owner is aware of the change but at least two weeks prior to the implementation date. This is to notify all involved parties of impending change and to help the scheduling of change into production. For urgent fixes the change process is followed but needs to be processed immediately. Full details may not be available at this point, however the minimum requirements to be completed are:

Scheduled date and time of change: Date Time

Change Control Number: CMS

Equipment affected by the change:

Equipment (Applies to one or more hardware, software changes or configuration changes to one or more networks).   Equipment Details   Domain   Location                                       Commercial in Confidence   Page 51   May 2004

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1. Change to be carried out:

2. Reason for Change

3. Is there any impact on other areas?

4. Has agreement been obtained from the business? If so please give details.          Commercial in Confidence   Page 52   May 2004

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5. Has Financial Approval been obtained for this change? If so please give details.

6. Have representatives from both the client and the technical staff tested the software or hardware? Please give details.

7. How will the change be carried out?

8. Has any provision been made to back out the installation if necessary? Please give details.          Commercial in Confidence   Page 53   May 2004

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9. Have the details and the implications of the change been explained to the client and areas that will be affected? Please give details.

This change control must be reviewed and approved by at least one person from each of the following areas:   Area   Signatory   Signature  Date The Business   Head of Relationship Banking

  Head of Technology

  Others

Datec   Outsourcing

  Delivery Manager



Office Automation Manager       Commercial in Confidence   Page 54   May 2004

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Schedule E

REQUEST FOR SERVICE (RFS)

Service Request Form   Commercial in Confidence   Page 55   May 2004

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BSP: Service Request Form

Compulsory section or fields are marked with: F

F SR Number:   (Completed by BSP)

-RFS-

  F Date       F Request Type (Cross) F Region (Cross)



¨ POM

¨ Other (Specify)



¨ Project Request

¨ Support Request

¨ Other: Please Specify

F 1.0 Request Details   Service Request Title

Project Name   BSP Project Code

Description

Provide a brief outline of the project scope including high-level business requirements, technical impacts. Where appropriate, provide details of other areas impacted by this project including external parties     Commercial in Confidence   Page 56   May 2004

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Background

Provide any relevant information, which assists in defining the business imperatives for the project, (e.g. Business Requirements)     List of Attachments supporting this Service Request   Attachment / Filename (Content)

2.0 Contract Reference

The terms and conditions will be applied as per the Network Management Outsourcing Agreement dated May 2004 between the Bank of South Pacific Limited and Datec PNG LTD.   F 3.0 Requestor Information

Initiator of Request   Name   (   Mobile

  Position   e-mail   Fax Prime Contact

(if different from Requestor)

Name



(



Mobile

  Commercial in Confidence   Page 57   May 2004

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  Position   e-mail   Fax

Requesting Business Area

Billing Cost Centre

Project Manager1   Name   (   Mobile   F 4.0 Key Dates (attach Project Plan or relevant documents as appropriate) BSP Phase(s)

Completion Date(s)

/ / / / Datec Phases(s)

Completion Date(s)

/ / / / Priority: (Cross those applicable)   ¨ Regulatory

¨ Normal

  Commercial in Confidence   Page 58   May 2004

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  ¨ Compliance   ¨ Fastpath

Implementation Date(s):   User Acceptance Testing

  Production

  Other (specify)   / /   5.0 BSP/Datec Purchase Order Details

F Purchase Order No.2   F BSP/Datec

Is this Request In-Scope or Out-of-Scope of the Services Agreement   Provide details of components if Out of Scope.

  Commercial in Confidence   Page 59   May 2004

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F 6.0 BSP Managerial Approval Authorised Approver   Name:

  Title:

  Date:   7.0 BSP Executive Approval Approval      Approval Approved / Not Approved for release to Datec PNG LTD on behalf of the Bank of South Pacific Limited by:     Approved / Not Approved for release to Datec PNG LTD on behalf of the Bank of South Pacific Limited by:

                For and on behalf of the Bank South Pacific Limited     For and on behalf of the Bank South Pacific Limited / /     / / Explanation for Non -approval (if appropriate)       Commercial in Confidence   Page 60   May 2004

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Highlight the parts (if any) of this contract related to Insurance that should be reviewed by a lawyer. Details: Is there a requirement for insurance that must be maintained by one party for the benefit of the counterparty?

Exhibit 2.01   Strategic Alliance Agreement   This agreement is made and entered into this 30th day of November, 2017 by and between Bravatek Solutions, Inc., a corporation organized under the laws of the State of Colorado, (Bravatek), with an address at 2028 E. Ben White Blvd., Unit #240-2835, Austin, Texas, 78741, and Sibannac, Inc. (COMPANY), a corporation organized under the laws of Nevada, with an address at 2122 E Highland Avenue, Suite 425, Phoenix, Arizona 85016.   Whereas, Bravatek is a corporation, which has technical expertise in security-related software, tools and systems/services (including telecom services) to support, deploy and test its current and potential customers' most critical initiatives.   Whereas, COMPANY a corporation engaged in the business of providing a novel, patented Air Cylinder Wheel, to replace the need for conventional rubber tires on a large range of vehicles used in the mining, military, construction and industries, delivering cost savings and reducing adverse environmental impact.   Whereas, the parties desire to enter into a business relationship which will designate Bravatek as the project based business partnership channel for governmental and non-governmental departments / agencies / units for the purpose of promoting COMPANY's relevant capabilities, products and/or service solutions. Now therefore, the parties mutually agree to enter into a strategic alliance under the following terms and conditions:   1) Duties of Bravatek   Bravatek agrees to serve as a non-exclusive project sales lead finder for COMPANY. In this capacity, Bravatek will use its best efforts to provide the following services to COMPANY.   a. Promote, market and introduce the Products to prospective clients in the government space nationwide.   b. Provide a quarterly Pipeline or project information leads report to COMPANY on a monthly basis which contains a 3-month rolling forecast of potential sales.   c. Follow-up on on-going project leads that COMPANY is actively engaged with or believes is appropriate.   d. Provide COMPANY with any promotional materials, technical papers, white papers, proposals, etc. prior to publication or delivery to prospective clients.

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  2) Duties of COMPANY   COMPANY agrees to use its best efforts to promote and support project lead finding and after-sales support of Bravatek by:   a. Listing Bravatek in all appropriate sales and marketing materials as a non-exclusive alliance partner (with focus of government customers)   b. Provide timely responses to both technical and administrative questions posed by Bravatek.   c. Promote Bravatek's product and service offerings whenever possible.   d. Aid Bravatek in the writing of any technical/marketing/sales documents when requested and participate in mutually-agreed upon sales calls.   e. Provide Bravatek with co-branded marketing material that can be emailed or handed to prospective clients.   3) Obligations of the Parties   Bravatek and COMPANY agree to jointly:   a. Develop and implement a joint Product Solution and Application Strategy whereby targeted markets/potential client- types/applications are mutually agreed upon;   b. Support each other in all agreed-upon technical, marketing and promotional efforts;   c. Develop a joint strategy for developing new product/services/capabilities to mutually benefit both parties;   d. Utilize each other as Preferred Vendors for services whenever possible upon mutual agreement.   4) Compensation   When custom Products are designed, developed and to be delivered to Bravatek-identified perspective clients, the parties shall agree to a proposed sales price for use during the project in writing prior to the commencement of each project.

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  For any Product or Solution sold to any perspective clients introduced by Bravatek registered with COMPANY via email to COMPANY's CEO and delivered through Bravatek or a COMPANY-designated distribution affiliate(s) or sales channel(s), Bravatek will receive a lead-finder fee, to be mutually discussed and finally decided by COMPANY at the range of minimum of 10% to maximum of 20% of project revenue, with an exact fee to be depending upon the overall project sales margin and cost of development and delivery of each project, payable NET 30 days after each client payment on delivered products received at COMPANY's bank account.   5) Confidentiality   Confidential information shall mean any and all technical and non-technical information, documents and materials related to client projects of party and products, services and business of each of the parties. COMPANY and Bravatek agree to maintain in strict confidence and not to disclose or disseminate, or to use for any purposes other than performance of the projects, the Confidential Information disclosed.   The obligation of non-disclosure shall not apply to the following:   a. Information at or after such time that is publicly available through no fault of either party   b. Information at or after such time that is disclosed to either party by a third party entitled to disclose such information   c. Information which is required by law to be disclosed to federal, state or local authorities.   6) Term of Confidentiality   For a period of five (5) years after termination of this Agreement, the parties shall treat as confidential all information and take every reasonable precaution and use all reasonable efforts to prevent the unauthorized disclosure of the same. The parties agree to take all steps reasonably necessary and appropriate to ensure that their employees, agents, and/or assistants treat all information as confidential and to ensure that such employees, agents, and/or assistants are familiar with and abide by the terms of this Agreement.   7) Term   The term of this Agreement is twelve (12) months from the date hereof, and will be automatically renewed for one (1) additional twelve month period unless either party shall notify the other in writing of its intention not to renew. Such notice must be given ninety (90) days prior to expiration of the original term. This Agreement may also be terminated by either party upon ninety (90) days written notice.

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  8) Notices   Any notices required under this Agreement shall be delivered to:   Bravatek Technologies, Inc. 2028 E. Ben White Blvd., Unit #240-2835 Austin, Texas 78741   Sibannac, Inc. 2122 E Highland Avenue, STE 425 Phoenix, AZ 85016   9) Governing Law   This Agreement is entered into in the State of Texas and shall be interpreted according to the laws of the State of Texas.   10) Indemnification   COMPANY shall indemnify Bravatek, its directors, officers and employees, for any and all damages, costs, expenses, and other liabilities, including reasonable attorney's fees and court costs incurred in connection with any third-party claim, action or proceeding arising from the negligence or intentional misconduct of COMPANY or breach of COMPANY of any of its obligations under this Agreement.   Bravatek shall indemnify COMPANY, its directors, officers and employees, for any and all damages, costs, expenses, and other liabilities, including reasonable attorney's fees and court costs, incurred in connection with any third-party claim, action or proceeding arising from the negligence or intentional misconduct of Bravatek or breach of Bravatek of any of its obligations under this Agreement.   11) Modifications   No changes or modifications of this Agreement or any of its terms shall be deemed effective unless in writing and executed by the parties hereto.   12) Assignment   This Agreement shall not be assignable by either party without the prior written consent of the other party.

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  13) Entire Agreement   This Agreement represents the complete and entire understanding between the parties regarding the subject matter hereof and supersedes all prior negotiations, representations, or agreements, either written or oral, regarding this subject matter.       This Agreement shall not be considered accepted, approved or otherwise effective until signed by the appropriate parties.     Bravatek Technologies, Inc.  Sibannac, Inc.     By: /s/ Thomas A.Cellucci  By: /s/ David Mersky     Name: Thomas A. Cellucci  Name: David Mersky     Title: Chairman & CEO  Chief Executive Officer     Date: November 30, 2017  Date: November 30, 2017

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Highlight the parts (if any) of this contract related to Minimum Commitment that should be reviewed by a lawyer. Details: Is there a minimum order size or minimum amount or units per-time period that one party must buy from the counterparty under the contract?