Document:

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                                                                  Exhibit 10.22

                               THE SOUTH EAST ASIA

                                       AND

                                  INDIAN OCEAN

                           CABLE MAINTENANCE AGREEMENT

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                                      INDEX

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE

<S>      <C>                                                                  <C>
1.       DEFINITIONS...........................................................6

2.       PREVIOUS AGREEMENTS..................................................10

3.       OBJECT...............................................................10

4.       MANAGEMENT COMMITTEE.................................................10

5.       PROVISION OF CABLESHIPS AND DEPOT(S).................................10

6.       USE OF CABLESHIPS....................................................12

7.       OPERATION OF THE CABLESHIPS..........................................14

8.       USE AND OPERATION OF THE DEPOT(S)....................................16

9.       USE OF SPARE SUBMERSIBLE PLANT.......................................17

10.      TRANSFER OF SPARE SUBMERSIBLE PLANT..................................18

11.      NOTIFICATION OF CABLESHIP REQUIREMENT................................18

12.      PLANNING AND DIRECTION...............................................20

13.      CABLESHIP BASE PORT..................................................20

14.      CLEARANCES...........................................................21

15.      PERIODS OF CABLESHIP UNAVAILABILITY..................................21

16.      MUTUAL SUPPORT COVENANT..............................................22

17.      PERIOD OF AGREEMENT..................................................24

18.      INCLUSION AND DELETION OF ADDITIONAL PARTIES AND SCHEDULED
         CABLES...............................................................24
</TABLE>

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<TABLE>
<S>      <C>                                                                  <C>
19.      BASIS OF CABLESHIP'S COST ALLOCATION.................................25

20.      BASIS OF DEPOT COST ALLOCATION.......................................28

21.      BILLING, ACCOUNTING AND SETTLEMENT ARRANGEMENTS......................29

22.      RECORDS..............................................................32

23.      LIABILITY AND INDEMNITY..............................................32

24.      INSURANCE............................................................33

25.      FORCE MAJEURE........................................................33

26.      PREROGATIVES OF THE COMMANDER........................................35

27.      DISTRESS AND SALVAGE.................................................36

28.      LEGAL INTERPRETATION.................................................36

29.      ARBITRATION..........................................................36

30.      RELATIONSHIP OF THE PARTIES..........................................37

31.      STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES.......................37

32.      AMENDMENTS...........................................................37

33.      ASSIGNMENT...........................................................37

34.      EXECUTION AND COUNTERPARTS...........................................37

35.      ENTIRE AGREEMENT.....................................................38

36.      HEADINGS.............................................................38

37.      REPRESENTATIVES AND CORRESPONDENCE...................................38

38.      NOTICES..............................................................38

39.      PUBLICITY............................................................38

40.      CONFIDENTIAL INFORMATION.............................................38
</TABLE>

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<TABLE>
<S>      <C>                                                                  <C>
41.      PERFORMANCE OF AGREEMENT.............................................39

42.      INSOLVENCY...........................................................39

43.      TRANSFER OF RESPONSIBILITIES.........................................40

SCHEDULES

Al.      LIST OF PARTIES TO THIS AGREEMENT - MAINTENANCE AUTHORITIES

A2.      LIST OF PARTIES TO THIS AGREEMENT - FACILITY PROVIDERS

Bl.      LIST OF SCHEDULED CABLES

B2.      CENTRAL BILLING PARTIES

C.       CABLESHIP OPERATIONAL ALLOCATION DEFINING EACH CABLESHIP'S,
         NORMAL OPERATIONAL ZONE

Dl.      CABLESHIP RUNNING COSTS

D2.      CABLESHIP FIXED STANDING CHARGE ALLOCATION

El.      DEPOT COST DERIVATION

E2.      DEPOT -- CABLE STORAGE DATA

E3.      DEPOT COST ALLOCATION TO EACH SCHEDULED CABLE

E4.      DEPOT COST ALLOCATION TO MAINTENANCE AUTHORITIES

F.       PROFORMA DOCUMENT OF ACCESSION

G.       BASIC CABLESHIP TECHNICAL CRITERIA

H.       MANAGEMENT COMMITTEE -- TERMS OF REFERENCE

I.       PREVIOUS CABLESHIP AND DEPOT AGREEMENTS

J.       DEPOT TECHNICAL CRITERIA
</TABLE>

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<TABLE>
<S>     <C>
K.       ALLOCATION OF COSTS OF ADDITIONAL SERVICES

L.       REPRESENTATIVES OF THE PARTIES AND MAILING ADDRESSES AND
         CONTACTS FOR FINANCIAL AND MAINTENANCE PURPOSES
</TABLE>

<PAGE>

This AGREEMENT entitled THE SOUTH EAST ASIA AND INDIAN OCEAN CABLE MAINTENANCE
AGREEMENT made between and among the Parties listed in Schedules Al and A2
hereto.

WHEREAS:

(a)      The Maintenance Authorities under various Construction and Maintenance
         Agreements are responsible for the maintenance and repair of the
         submersible plant of certain submarine telecommunications cable systems
         in the South East Asia and Indian Ocean areas.

(b)      The Maintenance Authorities wish to have made available cableships and
         storage depots for the repair and maintenance and storage of such
         submarine telecommunication cable systems.

(c)      ASEAN Cableship Private Limited a limited company having its registered
         office at 375 Tanjong Katong Road, Singapore 1543, Republic of
         Singapore and Cable and Wireless (Marine) Ltd. a limited company having
         its registered office at Mercury House, Theobalds Road, London WCI, in
         their separate capacities as Cableship Operators propose to make
         available two Cableships namely the C.S. Retriever and the C.S. Cable
         Enterprise respectively to the Maintenance Authorities for the repair
         and maintenance of such submarine telecommunications cables as are
         listed in Schedule B1 of this Agreement.

(d)      Sembawang Cable Depot Private Limited owns and operates a cable depot
         located at Sembawang Singapore and proposes to make available the Cable
         Depot to the Maintenance Authorities for the storage of spare
         submersible plant for the repair and maintenance of such submarine
         telecommunications cable systems as are listed in Schedule B1 of this
         Agreement.

NOW THEREFORE the Parties hereto covenant and agree with each other as follows:

1.       DEFINITIONS

         In this Agreement the following terms shall have the meaning hereby
assigned to them:

         (a)      "Cableship Operator"         means either ASEAN Cableship
                                               Private Ltd. or Cable and
                                               Wireless (Marine) Ltd. or both
                                               where the context so requires.

         (b)      "Cableship"                  means any Cableship provided by
                                               a Cableship Operator under this
                                               Agreement

-----------------------------------
  Confidential Treatment has been requested with respect to the portions of
this agreement marked with three asterisks (***) and the redacted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                               which is a vessel fully capable
                                               of and equipped as shown in
                                               Schedule G for the repair and
                                               maintenance of the Scheduled
                                               Cables, as shown in Schedule
                                               Bl, at the inception of this
                                               Agreement.

         (c)      "Chargeable Sheath Mileage"  means the sheath mileage of a
                                               Scheduled Cable adjusted in
                                               accordance with Schedule D2
                                               which unless otherwise agreed
                                               by the Management Committee is
                                               the method by which the
                                               Quarterly Net Chargeable Cost
                                               to the Maintenance Authorities
                                               is allocated.

         (d)      "Combined Manning"           means that each Cableship shall
                                               be on standby with a reduced
                                               level of officers and crew and
                                               that the Cableship Operators
                                               shall have agreed arrangements
                                               between themselves to bring the
                                               level of one or both Cableships
                                               up to a Fully Manned basis as
                                               required.

         (e)      "Depot"                      means the landbased storage
                                               facilities for Spare
                                               Submersible Plant.

         (f)      "Depot Owner"                means Sembawang Cable Depot
                                               Private Limited who currently
                                               own and operates a depot at
                                               Sembawang, Singapore and any
                                               other Depot Owner who may
                                               become Party to this Agreement
                                               in accordance with Clause 5(f)
                                               herein.

         (g)      "Facility oviders"           means any or all of the
                                               Cableship Operator(s) and Depot
                                               Owner(s) where the context so
                                               requires, as listed in Schedule
                                               A2.

         (h)      "Financial Year"             means consecutive twelve-month
                                               periods ending on the 31st of
                                               March of each year.

         (i)      "Fixed Standing Charges"     means the annual amount
                                               indicated in, or determined in
                                               accordance with Clause 19(a),
                                               19(b) and 19(c).

                                       7

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         (j)      "Full Manning"               means that each Cableship has a
                                               full complement of officers and
                                               crew at all times.

         (k)      "Fully Manned"               means that one or both of the
                                               two Cableships shall be brought
                                               up to a full complement of
                                               officers and crew from a
                                               Combined Manning level while on
                                               standby, or to undertake a
                                               repair and maintenance
                                               operation, or on charter.

         (l)      "LIBOR"                      means the London Interbank
                                               Offered Rate being the
                                               arithmetic mean, rounded to the
                                               nearest one-sixteenth, of the
                                               offered rates for ten million
                                               (10,000,000) United States
                                               Dollars quoted by the market of
                                               five (5) reference banks at
                                               11:00 am each working day. The
                                               banks are National Westminster,
                                               Bank of Tokyo, Deutsche Bank,
                                               Banque Nationale de Paris and
                                               Morgan Guaranty Trust.

         (m)      "Maintenance Authority"      means any Party or group of
                                               Parties, as listed in Schedule
                                               Al, primarily responsible for,
                                               or which acts as agent on
                                               behalf of other parties for,
                                               the repair and maintenance of a
                                               Scheduled Cable.

         (n)      "Management Committee"       means the committee formed by
                                               the Maintenance Authorities
                                               pursuant to Clause 4.

         (o)      "Normal Operational Zone"    means the area within the
                                               Operational Zone containing the
                                               Scheduled Cables for which a
                                               particular Cableship is
                                               primarily responsible, and
                                               hence normally the first
                                               choice, to effect repair and
                                               maintenance to such Scheduled
                                               Cables, as shown in Schedule C.

         (p)      "Operational Zone"           means the larger of the ocean
                                               areas bounded either by the
                                               Scheduled Cables or by the
                                               Great Circle Lines connecting
                                               Djibouti in

                                       8

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                                               the West, Perth in the South,
                                               Guam in the East, and Toucheng
                                               in the North.

         (q)      "Party"                      means a party to this Agreement
                                               as listed in Schedules Al and
                                               A2.

         (r)      "PIOCMA"                     means the agreement entitled
                                               "Mutual Assistance Agreement
                                               for Pacific and Indian Ocean
                                               Cable Maintenance" between the
                                               parties contained therein for
                                               mutual assistance arrangements
                                               between the maintenance zones
                                               of the Pacific Ocean and Indian
                                               Ocean regions.

         (s)      "PIOCMA Cables"              means cables under the PIOCMA
                                               for which the Maintenance
                                               Authorities have agreed that
                                               the Cableship Operators may
                                               repair and maintain in addition
                                               to the Scheduled Cables.

         (t)      "Quarterly Net Chargeable    means the quarterly amount
                  Cost"                        determined in accordance with
                                               Clause 19(d).

         (u)      "Running Costs"              means variable costs for a
                                               Cableship over and above the
                                               Fixed Standing Charge which are
                                               incurred in respect of repairs,
                                               maintenance, and other such
                                               operational circumstances as
                                               stipulated in this Agreement.

         (v)      "Scheduled Cable"            means any submarine
                                               telecommunications cable system
                                               or part thereof to be repaired
                                               and maintained under this
                                               Agreement and which is listed
                                               in Schedule Bl.

         (w)      "Spare Submersible Plant"    means the spare submarine
                                               cable, repeaters and equalisers
                                               and other associated spare
                                               submersible parts of a
                                               Scheduled Cable.

         (x)      "Submersible Plant"          means that part of a Scheduled
                                               Cable that is between and
                                               includes the respective beach
                                               joints of the terminal
                                               countries.

                                        9

<PAGE>

         (y)      "United Kingdom RPI"         means the United Kingdom Retail
                                               Price Index which is a monthly
                                               statistic officially published
                                               by the United Kingdom
                                               Government, which indicates on
                                               a weighted average price index
                                               basis the current overall rate
                                               of United Kingdom inflation.

Under this Agreement and where the context so requires the singular shall be
taken to mean the plural and vice versa.

2.       PREVIOUS AGREEMENTS

         Prior to the effective Date of this Agreement pursuant to Clause 17
         herein certain Parties hereto had rights and obligations under various
         existing cableship and depot agreements which are listed in Schedule I
         herein (called "Previous Agreements" for the purposes of this Clause).
         It is a condition precedent to the commencement of this Agreement that
         all Parties having rights and obligations under Previous Agreements
         shall relinquish the same and that this Agreement shall supersede the
         Previous Agreements Provided Always that such termination of the
         Previous Agreements shall not in any way prejudice any rights and
         remedies which may have accrued to any Party prior to the date of
         termination of such Previous Agreements.

3.       OBJECT

         The Maintenance Authorities hereby appoint, from the date specified in
         Clause 17 herein, each Cableship Operator to provide repair and
         maintenance facilities for the Submersible Plant by means of the
         Cableships, and the Depot Owner to provide storage facilities for the
         Spare Submersible Plant by means of the Depot, as defined in the
         appropriate Schedules for each facility.

4.       MANAGEMENT COMMITTEE

         The Maintenance Authorities shall form a Management Committee
         comprising one representative from each Maintenance Authority, and such
         Management Committee shall be governed by the terms of reference
         contained in Schedule H. The Facility Providers shall attend meetings
         of the Management Committee as reasonably required to do so by any
         Maintenance Authority.

                                       10

<PAGE>

5.       PROVISION OF CABLESHIPS AND DEPOT(S)

         (a)      On and from the date specified in Clause 17 herein, the repair
                  and maintenance of the Scheduled Cables shall be carried out
                  by two Cableships, such Cableships being as specified in
                  Schedule G hereto, namely:

                  (i)      The C.S. Retriever based in Singapore; and

                  (ii)     The C.S. Cable Enterprise based in Manila.

         (b)      Spare Submersible Plant for the Scheduled Cables shall, from
                  the effective date of this Agreement, be stored at a Depot
                  provided under this Agreement located at Sembawang Singapore,
                  other than that which may be on board the Cableships.
                  Throughout the term of this Agreement Spare Submersible Plant
                  may be stored at another Depot under this Agreement as the
                  Parties may from time to time agree. Notwithstanding the
                  foregoing some Spare Submersible Plant may be stored at
                  alternative depots or locations not under this Agreement such
                  as the Guam Depot.

         (c)      Each Cableship Operator at the outset of this Agreement
                  individually warrants, and will exercise due diligence
                  throughout the term of this Agreement to ensure that the
                  Cableship it provides under this Agreement is tight, staunch
                  and strong and fit for telecommunications cable work and each
                  Cableship Operator shall exercise due diligence to maintain
                  its Cableship to ensure that it is equipped with the necessary
                  gear to a standard to enable the Cableship Operator to fulfil
                  its obligations under this Agreement. Each Cableship Operator
                  shall ensure that when at sea its Cableship is furnished with
                  a complete complement of suitably qualified and competent
                  officers and seamen for the proper functioning of the
                  Cableship so as to fulfil the Cableship Operator's obligations
                  under this Agreement.

         (d)      The Cableship Operators shall carry out repairs and
                  maintenance work expeditiously and in accordance with
                  internationally accepted standards. However, if, in the
                  opinion of the Cableship Operator, a repair requires the use
                  of equipment in addition to the Cableship's normal cable
                  repairing gear, such additional equipment including but not
                  limited to diving services, support vessels and/or a Remotely
                  Controlled Submersible Vehicle (RCSV), then the Cableship
                  Operator shall use reasonable endeavours to provide, with the
                  consent of the Maintenance Authority responsible for a
                  particular operation, such additional services and equipment
                  as it deems necessary to enable it to carry out any such
                  repair in an expeditious manner. The cost of such additional
                  facilities shall be regarded as Running Costs and charged as
                  follows:

                                       11

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                  (i)      the cost of additional facilities provided directly
                           in respect of a particular repair or maintenance
                           operation shall be charged directly to that operation
                           in accordance with Clause 19(g); and

                  (ii)     any costs incurred in making such additional
                           facilities generally available, including but not
                           limited to annual retainers in respect of diving
                           services and other equipment hire or depreciation
                           charges, shall be allocated among all appropriate
                           Scheduled Cables in accordance with Clause 19(1).

         (e)      Each Cableship Operator shall ensure that its Cableship shall
                  meet the technical criteria agreed between and amongst the
                  Parties and attached hereto as Schedule G. Should any of the
                  Maintenance Authorities require any improvements,
                  modifications or additions to be carried out to the Cableships
                  (including modification to the Cableships to deploy an RCSV)
                  which are beyond the agreed technical criteria defined in
                  Schedule G then such modifications or improvements shall be to
                  the cost of those Maintenance Authorities and will be
                  reflected in an increase to the Fixed Standing Charge. The
                  nature and cost of such improvements and modifications and
                  associated increase to the Fixed Standing Charge shall be
                  subject to the prior agreement of the Management Committee and
                  the Cableship Operator before such improvements and
                  modifications are carried out.

         (f)      For the duration of this Agreement additional facilities (in
                  terms of cableships, depots and any other facilities) may be
                  added to this Agreement by agreement amongst the Parties to
                  this Agreement.

6.       USE OF CABLESHIPS

         (a)      The Cableships shall be used primarily for the repair and
                  maintenance of all the Scheduled Cables listed in Schedule Bl.

         (b)      The Scheduled Cables applicable to each Cableship's Normal
                  Operational Zone are listed in Schedule C.

         (c)      It is recognised by the Parties hereto, being parties to the
                  PIOCMA agreement, that the Cableship Operators may be
                  requested from time to time to provide assistance to cable
                  systems outside the Operational Zone. Therefore the Parties
                  hereto agree that the Cableship Operators shall be at liberty
                  to respond to requests for such assistance with the prior
                  agreement of the chairman of the Management Committee.

         (d)      The Cableship Operators shall actively seek to undertake other
                  work on a charter basis within the Operational Zone, provided
                  that within the applicable charter

                                       12

<PAGE>

                  agreement there is a provision for the Cableship to be
                  withdrawn, normally within 24 hours, so as to undertake a
                  repair of a Scheduled Cable, if so required by the Maintenance
                  Authority responsible and except as provided for in Clauses
                  6(e) and 6(f). The Cableship Operators shall advise the
                  Management Committee promptly by telex of the duration and
                  general location of such interruptable charter work.

         (e)      The Cableship Operators may undertake other charter work, on a
                  non-interruptable basis, for a period of up to three weeks
                  within the Operational Zone provided that one Cableship will
                  be available to fulfil the obligations of the Cableship
                  Operators under this Agreement. The Cableship Operators shall
                  advise the Management Committee promptly by telex of the
                  nature and duration of such non-interruptable work.

         (f)      If non-interruptable charter work within the Operational Zone
                  pursuant to Clause 6(e) is in excess of three weeks the
                  Cableship Operators shall seek the prior agreement of the
                  Management Committee. The decision of the Management Committee
                  shall be given by the chairman of the Management Committee to
                  the Cableship Operators within 36 hours upon receipt of such
                  application by the Cableship Operators to the chairman of the
                  Management Committee.

         (g)      During the term of this Agreement either or both of the
                  Cableships may only be removed from the Operational Zone for
                  Charter or PIOCMA work, with the prior agreement of the
                  Management Committee, or due to Force Majeure as defined in
                  Clause 25.

         (h)      All charter work undertaken by the Cableships shall be subject
                  to the Cableship Operator's charter terms and conditions
                  relevant to that Cableship, as may be amended by the Cableship
                  Operator from time to time, which amendments shall be agreed
                  by the Management Committee.

         (i)      The charter fees applicable to any charter under Clause 6(d),
                  6(e) and 6(f) and which, subject to Clause 6(j), the Cableship
                  Operator shall be deemed to have received from the respective
                  charterer shall comprise the following:

                  (i)      the Fixed Standing Charge calculated on a daily basis
                           in accordance with Clause 19(e)(i) which shall apply
                           for the total period from the start of any unloading
                           of Spare Submersible Plant necessary to allow the
                           charter to proceed until the return of the Cableship
                           to its base port.

                  (ii)     an additional charge which shall be determined by the
                           current market rate and agreed between the Cableship
                           Operators and the chairman of the Management
                           Committee and shall be allocated in accordance with
                           Clause 19(d)(v).

                                       13

<PAGE>

                  (iii)    a fixed charge which should be made up from the
                           Running Costs incurred if Clause 7(g) is activated
                           and the Transfer Costs incurred under Clause 20 (f),
                           and which shall be allocated in accordance with
                           Clause 19 (d)(viii).

         (j)      A Cableship Operator may undertake charter work as described
                  in this Clause at lower charter fees than that defined in
                  Clause 6(i)(i) with the prior agreement of the Management
                  Committee.

7.       OPERATION OF THE CABLESHIPS

         (a)      The Cableship Operators hereto jointly agree that the CS
                  Retriever and the CS Cable Enterprise may be operated on
                  either a Combined Manning basis or on a Full Manning basis
                  while on standby for repair and maintenance work as required
                  by the Management Committee.

         (b)      At the inception of this Agreement the Cableship Operators
                  shall operate the CS Retriever and CS Cable Enterprise on a
                  Combined Manning basis while the Cableships are on standby for
                  repair and maintenance work.

         (c)      At any time during the period of this Agreement the Management
                  Committee may request the Cableship Operators to change-over
                  from the Combined Manning arrangement to the Full Manning
                  arrangement or from the Full Manning arrangement to the
                  Combined Manning arrangement and the Cableship Operators shall
                  comply accordingly subject to:

                  (i)      the Management Committee giving a minimum notice of 6
                           months for such change-over from Combined Manning to
                           Full Manning; and

                  (ii)     the Management Committee giving a minimum notice of
                           12 months for such change-over from Full Manning to
                           Combined Manning; and

                  (iii)    a minimum duration of a manning arrangement of 2
                           years; and

                  (iv)     any Running Costs or other payments incurred in the
                           change-over to be to the cost of the Maintenance
                           Authorities and charged in accordance with Clause
                           19(h).

         (d)      Under the Full Manning arrangement each Cableship Operator
                  shall ensure that its Cableship is operated in such a manner
                  so as to be able to put to sea without undue delay and
                  normally within 24 hours of receipt of notification from the

                                       14

<PAGE>

                  appropriate Maintenance Authority that the Cableship's
                  services are required in accordance with Clause 11 and except
                  as provided for in Clause 15 and Clause 25 hereto.

         (e)      Under the Combined Manning arrangement the Cableship Operators
                  shall subject to Clause 7(f) ensure that the Cableships are
                  operated in such a manner as for the first called of the
                  Cableships to be able to put to sea without undue delay and
                  normally within 24 hours of receipt of notification from the
                  appropriate Maintenance Authority that the Cableship's
                  services are required in accordance with Clause 11 except as
                  provided for in Clause 15 and Clause 25 hereto.

         (f)      Under the Combined Manning arrangement when one Cableship is
                  already operationally engaged the Cableship Operator
                  responsible for the Cableship remaining on standby shall
                  ensure that it is operated in such a manner so as normally to
                  be able to put to sea within 2 to 3 days of receipt of
                  notification from the Maintenance Authority that the
                  Cableship's services are required in accordance with Clause 11
                  and except as provided for in Clause 15 and Clause 25. Any
                  Running Costs incurred in bringing the Cableships from a
                  standby basis to a Fully Manned basis shall be allocated to
                  the Scheduled Cables on the basis defined in Clause 19(h).

         (g)      When under the Combined Manning arrangement one Cableship is
                  operationally engaged, or is unavailable in accordance with
                  Clause 15 and Clause 25, the Management Committee may require
                  the Cableship Operator responsible for the Cableship on
                  standby to temporarily bring that Cableship up to a Fully
                  Manned level on the operational basis described in Clause 7(d)
                  within 2 to 3 days of the receipt by the Cableship Operator of
                  notice of such temporary requirement. The Running Costs
                  associated with such a temporary Fully Manned level shall be
                  charged to the Scheduled Cables on the basis defined in Clause
                  19(h). In the case of a charter or work under the PIOCMA the
                  Running Costs shall be recovered in accordance with Clause
                  6(i)(iii).

         (h)      The Cableship Operators may as considered necessary in
                  consultation with the relevant Maintenance Authority and as
                  circumstances so permit utilise additional officers and crew
                  to supplement the Fully Manned Cableship in the circumstances
                  of any anticipated long or difficult repair and maintenance
                  operations. The costs associated with such supplementing of
                  the Fully Manned Cableships shall be incurred as a Running
                  Cost and allocated to the Scheduled Cable being repaired or
                  maintained on the basis defined in Clause 19(g).

                                       15

<PAGE>

8.       USE AND OPERATION OF THE DEPOT(S)

         (a)      The Depot(s) shall be used primarily for the storage of Spare
                  Submersible Plant other than that which may be on board the
                  Cableships.

         (b)      Each Depot Owner at the outset of this Agreement individually
                  warrants, and will exercise due diligence throughout the term
                  of this Agreement to ensure that its Depot is fit for the
                  storage of Spare Submersible Plant and shall exercise due
                  diligence to maintain its Depot to ensure that it is equipped
                  with the necessary gear and staffed with suitable personnel to
                  enable the Depot Owner to fulfill its obligations under this
                  Agreement.

         (c)      Each Depot Owner shall at all times keep secure the Spare
                  Submersible Plant and ensure that its Depot is maintained so
                  as to preserve the Spare Submersible Plant, normal wear and
                  tear and obsolescence excepted, in the highest state of
                  operational readiness for use in the repair and maintenance of
                  the Submersible Plant. Each Depot Owner shall ensure adequate
                  provision and maintenance of all necessary equipment to enable
                  expeditious transfer of the Spare Submersible Plant to and
                  from a Cableship subject to the conditions of Clause 10 and
                  except as provided for in Clause 25.

         (d)      Each Depot Owner shall ensure that its Depot meets the
                  relevant technical criteria agreed between and amongst the
                  Parties and attached hereto as Schedule J.

                  Should the Maintenance Authorities require any improvements,
                  modifications or additions to be carried out to the Depot
                  which are beyond the technical criteria defined in Schedule J
                  then such modifications, improvements, or additions shall be
                  to the cost of the Maintenance Authorities and reflected in
                  the Depot Capital Charge as defined in Schedule El. The nature
                  and cost of such improvements, modifications or additions and
                  the associated increase to the Depot's costs shall be subject
                  to the prior agreement of the Management Committee and the
                  Depot Owner before such improvements, modifications or
                  additions are carried out.

         (e)      in the event of circumstances beyond the Depot Owner's control
                  forcing the closure of a Depot the Depot Owner concerned
                  shall, if so required by the Management Committee, use
                  reasonable endeavours to provide alternative storage
                  facilities for the Spare Submersible Plant stored at its Depot
                  subject at the time to the Parties reaching agreement as to
                  the necessary financial arrangements, such agreement not to be
                  unreasonably withheld.

                                       16

<PAGE>

9.       USE OF SPARE SUBMERSIBLE PLANT

         In order that repairs to the Scheduled Cables are carried out with the
         minimum of delay, any of the Spare Submersible Plant stored either on
         board a Cableship or in a Depot or both may be used with prior mutual
         agreement between the Maintenance Authority responsible for the said
         Spare Submersible Plant and the Maintenance Authority responsible for
         carrying out the repair work Provided Always That such Submersible
         Plant is considered by the Maintenance Authorities concerned to be
         technically compatible with the Scheduled Cable to be repaired. Upon
         completion of the repair the Cableship Operator shall promptly inform
         the Maintenance Authority concerned of the type and quantity of Spare
         Submersible Plant used and the Maintenance Authorities involved shall
         thereupon determine amongst themselves the consequential financial
         adjustments or replacement arrangements.

10.      TRANSFER OF SPARE SUBMERSIBLE PLANT

         (a)      A Maintenance Authority shall be entitled to require that its
                  Spare Submersible Plant be transferred to or from a vessel or
                  depot not provided under this Agreement, provided that the
                  said Maintenance Authority shall undertake to be absolutely
                  responsible and liable unless otherwise agreed in advance with
                  either the Depot Owner or Cableship Operator, or both, for the
                  following:

                  (i)      the berthing of any vessel so provided by the
                           Maintenance Authority together with any port dues,
                           pilotage, or any other levies and costs incurred by
                           such transfer operation, and

                  (ii)     the arrangement and payment of any labour, equipment,
                           insurance costs, and any other handling charges to
                           effect such transfer.

         (b)      In the event of a transfer of any Spare Submersible Plant to
                  or from a vessel or depot not provided under this Agreement,
                  the Cableship Operator or the Depot Owner shall make available
                  to the Maintenance Authority concerned or its duly authorised
                  servants and/or agents any equipment and manpower to operate
                  such equipment on board the Cableship or within the Depot, as
                  appropriate for effecting such transfer between the Cableship
                  or Depot and the said vessel or depot, providing such
                  equipment and manpower supplied by the Cableship Operator or
                  Depot Owner shall be under the sole control and direction of
                  the Maintenance Authority and that the Maintenance Authority
                  shall indemnify and hold harmless the Cableship Operator or
                  the Depot Owner for any injury, loss and/or damage which may
                  result from such transfer and in no event shall the Cableship
                  Operator or Depot Owner be liable for any indirect or
                  consequential loss. Notwithstanding that the Maintenance
                  Authority shall direct and control the operation, the decision
                  of the Commander of the Cableship shall be absolute in

                                       17

<PAGE>

                  carrying out or not carrying out any directions if he
                  considers that the carrying out of such directions concerning
                  the Cableship would endanger the Cableship or the lives or
                  safety of any person thereof.

11.      NOTIFICATION OF CABLESHIP REQUIREMENT

         (a)      When the Cableship Operator receives notification from a
                  Maintenance Authority that the services of the Cableship are
                  required to repair or maintain any of the Scheduled Cables the
                  Cableship Operator shall make arrangements for the despatch of
                  the Cableship to the required place of operation without undue
                  delay. In the case of a repair notification the Cableships
                  shall be put to sea as set forth in Clause 7.

         (b)      Repairs to the Scheduled Cables shall normally be effected by
                  the Cableships in accordance with Schedule C. However, if at
                  that time the relevant Cableship has already been assigned to
                  another repair operation, the second Cableship will attend to
                  the fault. In the event of the unavailability of the second
                  Cableship or of a conflict on the assignment of the Cableships
                  or on the sequence of the repair operations, the following
                  shall apply:

                  (i)      the Maintenance Authorities concerned and the
                           Cableship Operators shall consult with one another
                           with a view to agreeing which Cableship, including
                           under the terms of the PIOCMA, should be assigned to
                           which operation and the sequence of the operations.

                  (ii)     if no agreement is reached repairs shall be effected
                           within the Normal Operational Zone in the order of
                           notification to the relevant Cableship Operator.

                  (iii)    if a Cableship is on the repair ground and has
                           already engaged a repair, such repair should be
                           completed before assigning the Cableship to another
                           operation.

         (c)      The Cableships shall normally mutually support each other and
                  the Maintenance Authorities hereto agree that if one Cableship
                  is engaged on charter work then the second Cableship may be
                  notified by the Maintenance Authority to attend the repair in
                  the other Cableship's Normal Operational Zone thereby allowing
                  the continuation of the said charter work, Provided Always
                  That effective maintenance coverage of the Operational Zone is
                  not considered by the Maintenance Authorities to be
                  disadvantaged by the continuation of such charter work.

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<PAGE>

         (d)      If at the time the notification described in Clause 11(a) is
                  received the Cableship normally expected to repair and
                  maintain that particular Scheduled Cable is engaged in charter
                  work of the interruptable nature referred to in Clause 6(d)
                  then such charter work shall be stopped, if so required by the
                  Maintenance Authorities, in accordance with the aforesaid
                  charter agreement interruption provision upon receipt of
                  notification to enable the Cableship to be diverted to repair
                  the Scheduled Cable.

         (e)      For the purposes of notification each Cableship Operator shall
                  appoint a representative to whom notification should be sent.

12.      PLANNING AND DIRECTION

         (a)      The Maintenance Authority requiring any repair or maintenance
                  work to be carried out may elect to be responsible for
                  planning and directing that repair or maintenance operation
                  which shall be performed by the personnel of the Cableship
                  under the control and supervision of the Commander of the
                  Cableship in accordance with the Cableship Operator's "Cable
                  Working Procedures" or "Standing Instructions" as may be
                  amended from time to time by the Cableship Operator. Such
                  amendments shall be approved by the Management Committee. If
                  the Maintenance Authority does not so elect to be responsible
                  then the Cableship Operator shall be responsible for the
                  planning and direction of the cable repair or maintenance
                  operation. In all cases the Maintenance Authority shall make
                  available to the Cableship Operator the necessary technical
                  information required for repairs and maintenance to be carried
                  out to the appropriate Scheduled Cable.

         (b)      The Cableship Operators hereby agree that any Maintenance
                  Authority who elects to be responsible for planning and
                  directing any particular repair and maintenance work or for
                  purposes of observing the operation shall have the right to
                  have representatives on board the Cableship during the
                  relevant cable operations. The number of representatives shall
                  be subject to accommodation availability.

         (c)      The Maintenance Authorities shall appoint one of the
                  authorised representatives, should more than one be carried,
                  as a "Senior Representative". The Senior Representative shall
                  be responsible for planning and directing the repair or
                  maintenance operation, pursuant to Clause 12(a) above.

         (d)      Notwithstanding Clause 12 (a), (b) and (c) above, the decision
                  of the Commander shall be final in carrying out or not
                  carrying out any directions or plans issued by the Senior
                  Representative if the Commander considers that the carrying
                  out of

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<PAGE>

                  such instructions would endanger the Cableship or the lives or
                  safety of any person thereof.

13.      CABLESHIP BASE PORT

         (a)      At the inception of this Agreement the C.S. Retriever and the
                  C.S. Cable Enterprise shall be based, while on standby for
                  repair and maintenance, at the ports of Singapore and Manila
                  respectively.

         (b)      Should the Management Committee require at some stage during
                  the term of this Agreement a Cableship base port to be changed
                  in order to provide more efficient maintenance coverage of the
                  Scheduled Cables then the Cableship Operator shall implement
                  the necessary change subject to the prior agreement of the
                  Cableship Operator(s) involved and subject to Clause 26(a).
                  Any costs incurred as a result of the necessary change of base
                  port shall be borne by the Maintenance Authorities and
                  allocated to the Maintenance Authorities in proportion to each
                  Scheduled Cable's Chargeable Sheath Mileage in accordance with
                  Schedule D2.

14.      CLEARANCES

         (a)      The Cableship Operators shall inform themselves as to the laws
                  and regulations pertaining to the maritime waters in which
                  they are required to operate. The Maintenance Authorities will
                  assist the Cableship Operators where possible by bringing to
                  the attention of the Cableship Operators changes in
                  legislation of which they may from time to time become aware.
                  The Cableship Operators shall initiate procedures and the
                  relevant Maintenance Authorities and the Cableship Operators
                  shall jointly be responsible for obtaining all the necessary
                  clearances, permits and authorisations in the maritime waters
                  where the work is to be carried out and all other relevant
                  clearances to ensure the smooth implementation and successful
                  completion of repair and maintenance operations.

         (b)      No Party shall incur any liability to any other Party in the
                  event of clearances being delayed or refused due to reasons
                  beyond the control of any Party as defined in Clause 25.

15.      PERIODS OF CABLESHIP UNAVAILABILITY

         (a)      A Cableship will be considered temporarily unavailable for the
                  repair and maintenance of the Scheduled Cables in the
                  following circumstances:

                  (i)      when the Cableship undergoes periodic refits, or

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<PAGE>

                  (ii)     when the Cableship undergoes any modification or
                           alteration, or

                  (iii)    if at any time the Cableship is unable to function
                           due to damage or breakdown and requires a period of
                           repair, or

                  (iv)     if at any time the Cableship for reasons other than
                           as stated above or for reasons of Force Majeure as
                           defined in Clause 25 becomes unavailable other than
                           as a total loss or constructive total loss.

                  Upon the occurrence of any of the above events the appropriate
                  Cableship Operator shall notify the chairman of the Management
                  Committee promptly and in writing of the expected period of
                  unavailability of that Cableship.

         (b)      If a Cableship becomes a total loss or a constructive total
                  loss the Cableship Operators shall notify the chairman of the
                  Management Committee and, if required by the Management
                  Committee, use reasonable endeavours to provide a substitute
                  Cableship subject to terms and conditions to be proposed by
                  the Cableship Operator.

         (c)      If a Cableship is damaged to such an extent as to have to
                  undergo repairs that cause the Cableship to be unavailable for
                  a period exceeding 120 days in any one instance then the Fixed
                  Standing Charge for that Cableship shall be abated for the
                  duration of the period of unavailability beyond the first 120
                  days.

16.      MUTUAL SUPPORT COVENANT

         (a)      For the purposes of this Agreement both Cableship Operators
                  mutually covenant that both the Cableships shall be mutually
                  supporting, and they shall use reasonable endeavours to ensure
                  that the Operational Zone is covered by at least one Cableship
                  and accordingly:

                  (i)      the Cableships shall undergo normal refit at
                           different times, and

                  (ii)     if one Cableship requires repairs or becomes a total
                           loss or a constructive total loss the remaining
                           Cableship shall cover the Operational Zone, where
                           practicable, on a temporary basis.

                  The Cableship Operators agree that in the fulfilment of the
                  mutual support covenant they will maintain any of the
                  Scheduled Cables within the overall Operational Zone if so
                  required by the Maintenance Authorities.

                                       21

<PAGE>

         (b)      In the event that either Cableship is unavailable for any
                  reason the Management Committee shall consider implementing
                  arrangements under the terms of the PIOCMA.

         (c)      The Cableship Operators agree that if one Cableship is engaged
                  in refit and in such circumstances the Cableship is reasonably
                  deemed by the Management Committee to be urgently required due
                  to an emergency requirement involving coincident faults then
                  the Cableship Operator will disengage the required Cableship,
                  from refit as soon as considered possible. Nothing in this
                  Clause shall be construed as requiring a Cableship Operator to
                  operate a Cableship out of classification in any respect or if
                  in the Commander's sole discretion the safety of the Cableship
                  and its personnel might be jeopardised by such operation. The
                  costs associated with disengaging the Cableship from the refit
                  shall be included as Running Costs for that Cableship, and
                  allocated to the Scheduled Cables in accordance with Clause
                  19(h).

17.      PERIOD OF AGREEMENT

         This Agreement shall become effective on the first day of June, 1986
         and shall expire after a period of ten (10) years but may continue
         beyond that date by agreement amongst the Parties.

18.      INCLUSION AND DELETION OF ADDITIONAL PARTIES AND SCHEDULED
         CABLES

         (a)      Where any maintenance authority assumes the maintenance
                  responsibility for any cable system, or part thereof within
                  the Operational Zone, and if that maintenance authority is not
                  a Party to this Agreement then that maintenance authority may,
                  with the prior written agreement of all the Parties hereto and
                  in recognition of the mutual benefits to be obtained, be
                  entered as a Maintenance Authority under this Agreement for
                  the balance of the term of the Agreement by means of a
                  Document of Accession, as set forth in Schedule F, and hence
                  upon the coming into force of such document shall be entered
                  into Schedule Al.

         (b)      Subject to the prior agreement of the Parties, when a
                  Maintenance Authority assumes responsibility for any cable
                  system, or part thereof, it shall be entered into Schedule BI
                  and hence become a Scheduled Cable; other appropriate
                  Schedules shall be amended accordingly.

         (c)      A Scheduled Cable may be removed from this Agreement in the
                  event of that cable being taken out of service.

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<PAGE>

         (d)      For the duration of this Agreement a Maintenance Authority
                  shall have the right to implement an early withdrawal of a
                  Scheduled Cable from the Agreement Provided Always That the
                  Maintenance Authority shall give a minimum of TWO YEARS NOTICE
                  of such withdrawal to the other Parties hereto and save that a
                  Maintenance Authority may not issue such a notice until this
                  Agreement has been in force for three years.

         (e)      In the case of Clause 18(a), agreement shall be obtained from
                  the Parties as follows:

                  (i)      notification to the Parties of the proposed change by
                           telex.

                  (ii)     upon the expiration of thirty (30) days from the date
                           of such notification and, except in the event of any
                           Party advising any objections in writing or by telex
                           during such notice period the relevant Schedules
                           shall be amended and a Document of Accession shall be
                           executed as set forth in Schedule F. All revised
                           Schedules and, where appropriate, certified copies of
                           the Document of Accession shall be distributed to
                           each of the Parties.

                  (iii)    in the event that a Party objects in accordance with
                           Clause 18(e)(ii) above the Parties shall consult each
                           other to ascertain what action should be taken.

         (f)      The Management Committee shall be responsible for
                  administering the implementation of this Clause on behalf of
                  the Parties.

19.      BASIS OF CABLESHIP'S COST ALLOCATION

         (a)      The respective costs of each Cableship shall comprise Fixed
                  Standing Charges and Running Costs. Running Costs incurred are
                  calculated in accordance with Schedule Dl. The Fixed Standing
                  Charges for the first three Financial Years of this Agreement
                  shall be as shown below:

         ***

         (b)      At the end of the first Financial Year of this Agreement each
                  Cableship Operator shall advise the Maintenance Authorities of
                  the Fixed Standing Charge for the fourth Financial Year of the
                  Agreement. At the end of the second and each subsequent
                  Financial Year thereafter each Cableship Operator shall advise
                  the Maintenance Authorities of the Fixed Standing Charge for
                  the next unpriced

                                       23

<PAGE>

                  Financial Year, namely the third Financial Year forward, and
                  this method of Cableship pricing shall be maintained
                  throughout the term of the Agreement.

         (c)      Each successive Financial Year's Fixed Standing Charge advised
                  under Clause 19(b) shall not constitute an increase of more
                  than ***. If a Cableship Operator requires an increase to the
                  annual maintenance and refit element in the Fixed Standing
                  Charge in excess of the foregoing then the Cableship Operator
                  shall submit details of such increase for the consideration of
                  the Management Committee.

         (d)      The Quarterly Net Chargeable Cost shall be one quarter of the
                  annual Fixed Standing Charges which are abated or adjusted as
                  appropriate by any sums received or paid by the Cableship
                  Operator during the previous quarter in respect of:

                  (i)      amounts receivable by the Cableship Operator after
                           the deduction of all Running Costs incurred in
                           respect of repair and maintenance services to PIOCMA
                           Cables in accordance with Clause 6(c);

                  (ii)     the charter fees defined in Clause 6(i) (i),
                           excepting the circumstances defined in Clauses 6(j)
                           and 19(d) (vi);

                  (iii)    one half of any surplus remaining f rom the sum or
                           sums received or recovered by the respective
                           Cableship Operator in respect of any salvage or
                           assistance to other vessels given by the Cableship
                           during the course of this Agreement. Such surplus
                           shall be the total sum received less the proportion
                           due to the Commander and crew, all legal costs,
                           Running Costs, any other costs associated with the
                           salvage or assistance and, should at such time the
                           Cableship be on charter work as agreed under Clause
                           6, any share due to the charter party in the manner
                           described in the Cableship Operator's charter terms
                           and conditions,

                  (iv)     any revenue other than;

                           a)       amounts that are otherwise due under this
                                    Agreement and,

                           b)       receipts arising from insurance claims,

                                    accruing in respect of the Cableship during
                                    any period of temporary unavailability as
                                    described in Clause 15(a);

                  (v)      one half of any additional charge applied in
                           accordance with Clause 6(i)(ii);

                                       24

<PAGE>

                  (vi)     the entire charter fees, after the deduction of all
                           Running Costs incurred by the Cableship Operator,
                           accruing in respect of any period that the Cableships
                           are engaged in charter work where the Management
                           Committee has agreed in accordance with Clause 6(j)
                           to charter fees that are less than the charges
                           defined in Clause 6 (i)(i);

                  (vii)    the Fixed Standing Charge for periods in excess. of
                           120 days when a Cableship is unavailable in
                           accordance with Clause 15(c);

                  (viii)   amounts receivable from a charter in accordance with
                           Clause 6(i)(iii).

         (e)      Fixed Standing Charges applicable to periods of time in
                  respect of;

                  (i)      Clause 6(d), 6(e) and 6(f) shall be determined on a
                           daily basis by dividing the annual Fixed Standing
                           Charge of the Cableship by a figure of 335.

                  (ii)     Clause 19(d)(vii) shall be determined by dividing the
                           annual Fixed Standing Charge of the Cableship by a
                           figure of 365.

         (f)      The Quarterly Net Chargeable Cost for each Cableship shall be
                  allocated to the Maintenance Authorities in proportion to each
                  Scheduled Cable's Chargeable Sheath Mileage during the quarter
                  in accordance with Schedule D2 at all times (including repair
                  and maintenance operations);

         (g)      The Running Costs of a Cableship for the entire duration that
                  such Cableship is engaged in any repair or maintenance
                  operation on a Scheduled Cable or PIOCKA cable, including
                  passage time, shall be allocated entirely to the Scheduled
                  Cable or PIOCMA cable involved;

         (h)      Running Costs incurred in respect of Clauses 7(c), 7(f), 7(g)
                  and 16(c) shall be allocated amongst the Maintenance
                  Authorities responsible for the Scheduled Cables in proportion
                  to each Scheduled Cable's Chargeable Sheath Mileage in
                  accordance with Schedule D2 or in accordance with the
                  provisions of the PIOCMA if applicable;

         (i)      In the event of any Cableship being engaged in multiple work
                  operations, the Running Costs for the passage time before such
                  work starts on the first operation, the time spent in passage
                  between the end of each completed operation and the start of
                  the next operation, and the time spent in passage from the end
                  of the last operation in the series of operations to the
                  arrival of the Cableship at its base port, shall be aggregated
                  and shared to the operations in proportion to the distance of
                  each operation from the Cableship's base port;

                                       25

<PAGE>

         (j)      The Running Costs of the Cableship for the entire periods when
                  engaged in charter work (including the Running Costs of
                  bringing the chartered Cableship up to a Fully Manned level
                  from a Combined Manning level) shall be borne wholly by such
                  charter work;

         (k)      The Running Costs of the Cableships for the duration of any
                  period when engaged in cable working exercises shall be
                  allocated between Scheduled Cables in proportion to their
                  Chargeable Sheath Mileage in accordance with Schedule D2.

         (l)      The Running Costs identified in Clause 5(d)(ii) in respect of
                  the provision of additional facilities shall be allocated on
                  the basis identified in Schedule K amoung the Scheduled Cables
                  having been agreed as requiring the availability of such
                  additional facilities.

         (m)      Any amounts paid by the Cableship Operator In respect of
                  services provided to a Scheduled Cable by other cableships
                  under the provisions of the PIOCMA shall be allocated and
                  billed to Maintenance Authorities by the Cableship Operator as
                  a part of and in accordance with the cost sharing and payment
                  provisions of this Agreement.

20.      BASIS OF DEPOT COST ALLOCATION

         (a)      The operational costs of the Depot shall be specified as
                  Storage Costs and Transfer Costs which are both defined in
                  Schedule El.

         (b)      Storage costs shall be allocated to Scheduled Cables in the
                  same proportion as the volume of spare cable of each Scheduled
                  Cable stored collectively in the Depot(s) and on board the
                  Cableships provided in accordance with Clause 5, to the total
                  volume of all spare cable belonging to the Scheduled Cables
                  being stored therein. Schedule E2 gives data for each type of
                  cable and Schedule E3 shows the volume of spare cable of the
                  Scheduled Cables which utilise the storage facilities of the
                  Depot and Cableships. Schedule E4 shows the derived percentage
                  allocation of the Storage Costs to be allocated to each
                  Maintenance Authority at the commencement of this Agreement.
                  Schedules E2, E3 and E4 will be revised from time to time by
                  the Depot Owner in consultation with the Cableship Operators
                  during the term of this Agreement to reflect changes in spare
                  cable storage.

         (c)      The Cableship Operators shall supply the Depot Owner(s) with
                  details of the volume of spare cable of each Scheduled Cable
                  stored on board the Cableships within 14 days of being so
                  requested by a Depot Owner.

                                       26

<PAGE>

         (d)      In the event of additional storage facilities being provided
                  in accordance with Clause 5 each Depot Owner will supply the
                  other Depot Owner with details of the volume of spare cable of
                  each Scheduled Cable stored in their respective Depot(s),
                  within 14 days of being so requested by the other Depot Owner.

         (e)      Transfer Costs shall with the exception of Clause 20(f) be
                  borne by and charged to the Maintenance Authorities for which
                  transfer work is undertaken.

         (f)      Where Transfer Costs are incurred in respect of either a
                  charter for the Cableship, or undertaking PIOCMA work pursuant
                  to Clause 6, such Transfer Costs shall be borne by the
                  Maintenance Authorities in proportion to each Scheduled
                  Cable's Chargeable Sheath Mileage as defined in Schedule D2.

21.      BILLING, ACCOUNTING AND SETTLEMENT ARRANGEMENTS

         (a)      During the quarter preceding each Financial Year each Depot
                  Owner(s) shall supply the Maintenance Authorities with an
                  estimate of the annual Storage Costs for that Financial Year.
                  These estimates shall be presented in the detailed categories
                  set out in Schedule El. Billing of Storage Costs during the
                  course of the Financial Year shall be submitted on a quarterly
                  basis and based on such estimates.

         (b)      Bills in respect of the Quarterly Net Chargeable Cost of the
                  Cableships, and the Storage Costs in respect of the Depot(s)
                  shall be submitted by each Facility Provider 15 days prior to
                  the first day of the quarter in which they apply.

         (c)      The Cableship, Operator(s) shall as necessary submit a final
                  billing after the completion of each Financial Year as soon as
                  the Quarterly Net Chargeable Costs for that Financial Year are
                  known. This final billing shall comprise the final
                  retrospective adjustments to the amounts billed in accordance
                  with Clause 19(d) and such adjustments shall be included and
                  settled as a part of the next billing submission to the
                  Maintenance Authorities.

         (d)      The Depot Owner(s) shall submit a final billing after the
                  completion of each Financial Year as soon as the annual
                  Storage Costs are known This final billing shall comprise the
                  final retrospective adjustments to the amounts billed in
                  accordance with Clause 20 and such adjustments shall be
                  included and settled as a part of the next billing submission
                  to the Maintenance Authorities.

         (e)      Bills in respect of Running Costs and Transfer Costs shall be
                  submitted on a monthly basis in arrears and include actual
                  costs as they become known.

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<PAGE>

         (f)      Schedule Bl identifies the Maintenance Authorities responsible
                  and individually liable for the payment of any amounts due
                  under this Agreement in respect of each Scheduled Cable. Bills
                  shall detail the amount payable for each Scheduled Cable and
                  for this purpose Schedules D2 (Page 2) and E3 summarise
                  respectively the total billing allocation of Cableship
                  Quarterly Net Chargeable Costs and annual Storage Charges
                  respectively to each Scheduled Cable. Schedule D2 (Page 4) and
                  Schedule E4 (Page 1) show the allocated billing of Quarterly
                  Net Chargeable Cost and Storage Charges respectively as
                  derived after application of Central Billing parties in
                  accordance with Clause 21(j).

         (g)      All bills shall be submitted and paid in the currency of issue
                  which shall be UK pounds sterling or Singapore dollars. All
                  bills shall be paid within sixty (60) days of the date of
                  receipt of such bills by the relevant Maintenance Authority or
                  the appropriate Central Billing party. In this respect, the
                  Cableship Operators and the Depot Owner(s) shall provide to
                  the relevant Maintenance Authority or Central Billing party by
                  telex, or like means of communication, advice of the date of
                  despatch of all bills being submitted under this Agreement.
                  Within ten (10) days of such advice of the date of despatch of
                  a bill, the relevant Maintenance Authority or Central Billing
                  party shall advise by telex the Party issuing the bill of its
                  receipt or non-receipt. Should the Maintenance Authority or
                  Central Billing party fail to provide such advice, the bill
                  shall be deemed to have been received on the tenth day after
                  the date of advice of despatch as above.

         (h)      The Cableship Operators and the Depot Owner respectively shall
                  be entitled to charge interest at a rate of 3 percentage
                  points per annum greater than the LIBOR effective on the date
                  of issuing of the bill for such interest for each billing
                  period. Interest will be charged on this basis for the period
                  that payment of any bill remains overdue after the date
                  defined by Clause 21(g) or 21(l). Such interest shall be
                  calculated on a simple interest basis and become payable
                  immediately on demand. Unless otherwise agreed by the
                  respective Cableship Operator or Depot Owner all interest
                  charges under this Clause shall be billed directly to the
                  Maintenance Authorities, as indicated in Schedule Bl,
                  responsible for payments under this Agreement or to the
                  appropriate Central Billing party if the Central Billing party
                  is a Party to this Agreement.

         (i)      Should any bill or part thereof be under dispute as to its
                  correctness, then interest as defined in Clause 21(h) shall
                  not apply provided that;

                  (i)      before the due date for payment the Cableship
                           Operator and Depot Owner(s) are advised by telex or
                           like means of communication of the amount in dispute
                           and the nature of that dispute; and

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<PAGE>

                  (ii)     where the matter under dispute represents less than
                           twenty (20) percent of the total amount billed, an
                           interim payment of at least eighty (80) percent of
                           the total bill has been made. In this respect, the
                           Cableship Owner and Depot Owner(s) shall, if
                           requested by an appropriate Maintenance Authority
                           within 14 days of receipt of the bill in dispute,
                           issue a replacement bill omitting the amount in
                           dispute, such replacement bill shall become due for
                           payment in accordance with Clause 21(g). The amount
                           in dispute shall be investigated and after any
                           necessary corrections shall be re-issued;

                  Notwithstanding the foregoing, in the event that on
                  investigation the disputed bill or part thereof is found to be
                  correct, then the Maintenance Authorities shall pay interest
                  on the unpaid part from the day after the due date for payment
                  of the disputed bill in accordance with Clause 21(h) above.

         (j)      Recognising that some Maintenance Authorities within various
                  construction and maintenance agreements have appointed a
                  Central Billing party in respect of their Scheduled Cables,
                  the Cableship Operators and Depot Owner(s) respectively shall
                  forward the original invoice to that Central Billing party for
                  payment. Information copies of bills shall be forwarded at the
                  same time to all the relevant Maintenance Authorities. The
                  Central Billing parties appropriate to Scheduled Cables under
                  this Agreement are indicated in Schedule B2.

         (k)      Notwithstanding Clause 21(j) the respective Maintenance
                  Authorities shall remain responsible and individually liable
                  for all payments due by them under this Agreement and as
                  indicated in Schedule Bl.

         (l)      Any amount billed to but not paid by an appointed Central
                  Billing party before the expiry of thirty (30) days after its
                  due date for payment in accordance with Clause 21(g) may be
                  re-billed by the respective Facility Provider to the
                  Maintenance Authorities responsible for payment in accordance
                  with Schedule Bl. Such rebilled amounts shall become due for
                  payment within 7 days of receipt by the Maintenance Authority.
                  Any re-billed amount not paid within 7 days shall accrue
                  interest in accordance with Clause 21(h).

22.      RECORDS

         (a)      The Facility Providers shall as appropriate keep for a period
                  of not less than six years from the date of issue, such
                  records, vouchers, accounts, or reproduction thereof in
                  whatever form, of all costs incurred in connection with the
                  Cableship Running Costs, and the Storage Costs and Transfer
                  Costs of the Depot(s) to support their billing or derived
                  settlements of such costs to and amongst the

                                       29

<PAGE>

                  Maintenance Authorities and shall make such records, vouchers,
                  and accounts available at all reasonable times for inspection
                  by the Maintenance Authorities.

         (b)      The Cableship Operator shall keep repair and maintenance
                  records relating to Scheduled Cables for a period of not less
                  than six years from the date of issue of such records and the
                  Maintenance Authorities shall have a right to obtain copies of
                  such records upon request.

         (c)      After each repair operation the Cableship Operator shall
                  forward to the relevant Maintenance Authority a report on the
                  repair work which shall include a schedule of events,
                  electrical data and diagrams and charts of the operation.

23.      LIABILITY AND INDEMNITY

         (a)      For the purposes of this Clause the reference to Owner shall
                  refer to either the Cableship Operator or Depot Owner or both
                  concerned when a claim or liability arises under the terms of
                  the Agreement. In no event shall there be joint liability
                  between any Cableship Operator or Depot Owner unless otherwise
                  agreed in writing between or amongst them.

         (b)      Each Owner shall be liable for all direct damages to persons
                  or property arising in the discharge of its obligations under
                  the Agreement to the extent that such damages have resulted
                  from the intentional or negligent acts or omissions of the
                  Owner, its agents or employees. The Owner shall indemnify and
                  hold harmless the Maintenance Authority concerned against all
                  claims, actions, demands or judgments for such direct damages.

         (c)      Each Owner shall be liable for injury or damages to persons or
                  property sustained by its employees or agents in the course of
                  their employment or agency to the extent that such injury or
                  damages are not caused by negligence or intentional acts of a
                  Maintenance Authority and to that extent the said Owner will
                  indemnify and hold harmless the Maintenance Authority against
                  all claims, actions, demands, or judgments for damages by
                  employees or agents of the Owner except to the extent that
                  such claims, actions, demands and judgments arise out of the
                  negligence or intentional acts of a Maintenance Authority.

         (d)      Each Maintenance Authority shall be liable for all direct
                  damages to persons or property arising in the discharge of its
                  obligations under the Agreement to the extent that such
                  damages have resulted from the intentional or negligent acts
                  or omissions of the Maintenance Authority, its agents or
                  employees. The Maintenance Authorities shall indemnify and
                  hold harmless the Owner concerned against all claims, actions,
                  demands or judgments for such direct damages.

                                       30

<PAGE>

         (e)      Except as stated in Clauses 23 (a), (b), (c) and (d) no Owner
                  or Maintenance Authority shall be liable for any other damages
                  suffered by the other nor shall either or any of them be
                  required to indemnify or hold harmless the other against
                  claims made by any person or entity against either or any of
                  them for damages arising from the acts or omissions of either
                  or any of them in the discharge of their respective
                  obligations under this Agreement.

24.      INSURANCE

         (a)      The Cableship Operators and Depot Owner(s) respectively shall
                  be responsible for obtaining their necessary insurance
                  coverage as specified in Schedules Dl and El respectively.

         (b)      if requested by a Maintenance Authority the Facility Providers
                  shall provide individually and on a confidential basis to that
                  Maintenance Authority copies of relevant insurance policies
                  and, if applicable, copies of the booklet giving details of
                  the Protection and Indemnity cover and proper evidence of the
                  payment of all premiums.

25.      FORCE MAJEURE

         (a)      Neither the Cableship Operators, nor the Depot Owner(s) shall
                  be liable for any inability or delay in carrying out work on
                  the Scheduled Cables if prevented from doing so for reasons
                  beyond their reasonable control.

         (b)      In particular neither the Cableship Operators nor the Depot
                  Owner(s) shall be liable for any delay or failure to carry out
                  their duties and obligations hereunder arising or resulting
                  from:

         -        Fire, unless caused by the actual fault or privity of a
                  Cableship Operator or Depot Owner or both.

         -        Perils, dangers, and accidents of the sea or other navigable
                  waters.

         -        Act of God.

         -        Act of War.

         -        Act of public enemies.

                                       31

<PAGE>

         -        Arrest or restraint of princes, rulers or people, or seizure
                  under legal process.

         -        Quarantine restrictions.

         -        Act or omission of the Maintenance Authority, his agent or the
                  Maintenance Authority's authorised representative(s).

         -        Strikes or lockouts or stoppage or restraint of labour from
                  whatever cause, whether partial or general.

         -        Riots and civil commotions.

         -        Saving or attempting to save life or property at sea or to
                  take aboard or land refugees.

         -        Loss or damage arising from Inherent defect, quality or vice
                  of the Maintenance Authority's plant and equipment.

         -        Latent defects not discoverable by due diligence.

         -        Pirates or assailing thieves.

         -        Adverse weather conditions.

26.      PREROGATIVES OF THE COMMANDER

         (a)      The Cableships shall not be obliged to proceed to, nor remain
                  at, or enter any port or place which is, or which is
                  considered by the Commander or the Cableship Operator in his
                  or its discretion to be dangerous by reason of fever,
                  epidemics, ice, blockade, war, hostilities, warlike
                  operations, civil war, civil commotions, revolutions,
                  operation of law or any other reason considered by the
                  Commander or the Cableship Operator in his or its discretion
                  to be dangerous, or to which the Cableships are prohibited
                  from going by the government of the nation under whose flag
                  the Cableship sails, or by any other government. In the event
                  that a Cableship is ordered to such a port or place the
                  Cableship Operator shall seek instructions from the
                  Maintenance Authorities as to an alternative port or place.
                  The Cableship Operator shall also be entitled to charge any
                  expenses incurred in proceeding thereto as a Running Cost to
                  the Maintenance Authority concerned in accordance with Clause
                  19.

         (b)      The Cableships shall not be obliged to force ice. If on
                  account of ice the Commander considers it dangerous to remain
                  at a port or place for fear of the

                                       32

<PAGE>

                  Cableships being frozen in and/or damaged, he has liberty to
                  sail to a convenient open place and await new instructions.

         (c)      The Commander shall have liberty to comply with any orders or
                  directions as to departure, arrival, routes, ports of call,
                  stoppages, destination, delivery or otherwise, howsoever
                  given, by the government of the nation under whose flag the
                  Cableship sails or any department thereof, or by any other
                  government or any department thereof, or any person acting or
                  purporting to act with the authority of any such government or
                  any department thereof or by any committee or person having,
                  under the terms of the war risk insurance on the Cableship,
                  the right to give such orders or directions and if by reason
                  of and in compliance with any such orders or directions
                  anything is done or is not done, the same shall not be deemed
                  a deviation, and performance in accordance with such orders or
                  directions shall be a fulfilment of this Agreement.

         (d)      The Cableship Operator agrees where possible to use its
                  reasonable endeavours to ensure that the duration of any
                  deviation or detention under Clauses 26(a) and (b) and (c) are
                  kept to a minimum. The costs of such deviations or detentions
                  shall be charged as Running Costs to the relevant Maintenance
                  Authority in accordance with Clause 19.

27.      DISTRESS AND SALVAGE

         (a)      At all times during the term of this Agreement the Cableships
                  shall have liberty to sail with or without pilots, to tow or
                  be towed, deviate to assist vessels in distress, or to deviate
                  for the purpose of saving life or property, to take aboard
                  carry and land refugees, to secure medical attention for any
                  person onboard suffering from accident or illness, to deviate
                  for reason of bad weather, to call at any ports for fuel or
                  other supplies, or for any other valid or customary cause. The
                  Management Committee shall be advised as soon as possible of
                  any of these causes.

         (b)      The Cableship Operators shall be at liberty to engage in
                  salvage without the written consent of the Maintenance
                  Authorities. All salvage money earned by the Cableships shall
                  be divided equally between the Cableship Operator and the
                  Maintenance Authorities after deducting the Cableship
                  Operator's Commander's, Pilot's, Officer's and Crew's share,
                  legal expenses, Fixed Standing Charges and Running Costs
                  during the time lost, repairs to damage if any and any other
                  loss or expense sustained as a result of the salvage. The
                  Maintenance Authorities shall be bound by any measure taken by
                  the Cableship Operator in order to secure payment of salvage
                  and to fix its amount.

                                       33

<PAGE>

28.      LEGAL INTERPRETATION

         This Agreement shall in all respects be governed by and be construed in
         accordance with the laws of England.

29.      ARBITRATION

         (a)      All disputes arising in connection with this Agreement and
                  which cannot be settled to the mutual satisfaction of the
                  Parties shall be finally settled under the Rules of
                  Conciliation and Arbitration of the International Chamber of
                  Commerce by one or more arbitrators appointed in accordance
                  with the said Rules.

         (b)      Notwithstanding Clause 29(a), if there is no unanimous
                  agreement by all the Parties to have the dispute heard before
                  an arbitrator in accordance with Clause 29(a), the dispute
                  shall be heard before a court of Law in accordance with Clause
                  28.

         (c)      The performance of this Agreement by the Parties shall
                  continue during such arbitration or legal proceedings.

30.      RELATIONSHIP OF THE PARTIES

         The relationship between or amongst the Parties shall not be that of
         partners and nothing herein contained shall be deemed to constitute a
         partnership between them, and the common enterprise amongst the Parties
         shall be limited to the express provisions of this Agreement.

31.      STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES

         Nothing herein shall be construed as a demise or charter of a Cableship
         to any of the Parties.

32.      AMENDMENTS

         (a)      This Agreement and any of the provisions herein, unless as
                  expressly provided for herein, may only be altered or added to
                  in writing signed by a duly authorised person on behalf of
                  each Party.

         (b)      Except as otherwise provided for herein Schedules may be
                  amended subject to agreement by telex between and amongst all
                  the Parties.

                                       34

<PAGE>

33.      ASSIGNMENT

         No Party shall, without the written consent of all the other Parties,
         which consent shall not be unreasonably withheld, sell, transfer or
         dispose of its rights or obligations under this Agreement except to a
         statutory successor of the same.

34.      EXECUTION AND COUNTERPARTS

         This Agreement shall be executed in 16 (sixteen) counterparts in the
         English language and each counterpart when delivered shall be
         considered an original. New Maintenance Authorities shall be added to
         this Agreement by means of a Document of Accession as set forth in
         Schedule F and the Document of Accession shall for each such addition
         be executed in two counterparts in the English language and certified
         copies shall be delivered to all the Parties.

35.      ENTIRE AGREEMENT

         This Agreement together with the Schedules hereto constitute the entire
         agreement between the Parties in relation to its subject matter. All
         references to the Party(ies), Clause(s) and Schedule(s) refer to the
         Party(ies), Clause(s) and Schedule(s) under this Agreement. In
         addition, and where the context requires, the singular shall be taken
         to mean the plural and the plural shall be taken to mean the singular.

36.      HEADINGS

         For the purposes of interpretation of this Agreement and Schedules all
         headings thereof shall be deemed not to form part of this Agreement.

37.      REPRESENTATIVES AND CORRESPONDENCE

         The Parties shall inform each other of their representatives for the
         purpose of correspondence between the Parties.

38.      NOTICES

         (a)      Any notice or consent required or permitted hereunder shall be
                  given in writing or confirmed in writing as the context so
                  requires and shall be deemed to be duly

                                       35

<PAGE>

                  given if deposited by hand at, or despatched by airmail of the
                  most expeditious class or by telex or electronic mail
                  addressed to, the last known registered office of the Party to
                  whom it is addressed.

         (b)      Unless it is expressly provided for herein or otherwise agreed
                  any such notice or consent shall be deemed to be served ten
                  days from the date of despatch.

39.      PUBLICITY

         Any publicity or news releases regarding this Agreement shall not br
         issued or published without the prior agreement of the Parties.

40.      CONFIDENTIAL INFORMATION

         All Parties to this Agreement shall treat as confidential any
         information arising from and in connection with this Agreement and
         shall not divulge or turn to account any information oral or written to
         a third party without the prior written agreement of all Parties.

41.      PERFORMANCE OF AGREEMENT

         The performance of this Agreement by the Parties hereto shall be
contingent upon either:

                  (i)      the continued operation of at least one Scheduled
                           Cable;

                  or

                  (ii)     the necessary government approvals.

42.      INSOLVENCY

         Upon the happening of each or any of the following events:

                  (i)      if, except for the purposes of re-organisation, any
                           Party is wound up or a petition is presented or an
                           order is made or a resolution is passed for the
                           winding up of any Party or a meeting is convened for
                           the purpose of considering any such resolution;

                                       36

<PAGE>

                  (ii)     if any Party is placed under official management,
                           that is, if pursuant to a resolution of creditors or
                           members of that Party or an order of a court a person
                           is appointed to take custody of all or part of the
                           property of that Party and to conduct its business
                           and manage its affairs and comply with the
                           legalisation in respect of companies applicable in
                           the place where he is so appointed, or if any Party
                           causes a meeting of its members or creditors to be
                           summoned for the purpose of placing it under official
                           management;

                  (iii)    if any Party makes default under any charge or
                           security in favour of any creditor of that Party;

                  (iv)     if any indebtedness of any Party becomes due and
                           payable prior to the stated maturity thereof as a
                           result of a default or is not paid upon the maturity
                           thereof;

                  (v)      if an inspector of all or any part of the affairs of
                           any Party is appointed pursuant to the legislation in
                           respect of companies applicable in the place of
                           incorporation of that Party or in a place where that
                           Party carries on business;

                  (vi)     if a compromise or arrangement is proposed between
                           any Party and its creditors or any class of them or
                           if an application is made to a court for an order
                           summoning a meeting of creditors or any class of them
                           of any Party;

                  then any Party affected by each or any of the above listed
                  events shall immediately inform all the other Parties thereof,
                  and all the Parties shall then consult to decide what further
                  action is necessary.

43.      TRANSFER OF RESPONSIBILITIES

         (a)      In the case of any of the events in Clause 42 occurring to
                  ASEAN Cableship Private Limited which consequently require
                  ASEAN Cableship Private Limited to withdraw from this
                  Agreement, Cable and Wireless (Marine) Limited undertake to
                  provide the repair and maintenance responsibilities of the
                  Cableship Retriever under the terms and conditions of this
                  Agreement for the remainder of the term.

         (b)      The ASEAN Cableship Private Limited hereto agrees and the
                  Parties hereto agree that such transfer of responsibilities
                  referred to in Clause 43(a) is deemed to be effective upon any
                  of the events referred to in Clause 42 occurring to ASEAN
                  Cableship Private Limited.

                                       37

<PAGE>

SIGNED:

For and on behalf of                             Attest              Date
ASEAN CABLESHIP PRIVATE LTD

  /s/ Name of Signatory                          Name of Attestor    29/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
COMMUNICATIONS AUTHORITY OF
THAILAND

 /s/ Name of Signatory                           Name of Attestor    30/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELESS (HONG KONG)
LTD

  /s/ Name of Signatory                          Name of Attestor    27/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELES (MARINE) LTD

  /s/ Name of Signatory                          Name of Attestor    20/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELESS PLC

  /s/ Name of Signatory                          Name of Attestor    20/5/86
--------------------------------                 ----------          -------

                                       38

<PAGE>

For and on behalf of                             Attest               Date
EASTERN TELECOMMUNICATIONS
PHILIPPINES INC

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
INTERNATIONAL TELE-
COMMUNICATION DEVELOPMENT
CORPORATION

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
JABATAN TELEKOM MALAYSIA

/s/ Name of Signatory                            Name of Attestor     30/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
KOKUSAI DENSHIN DENWA CO., LTD.

/s/ Name of Signatory                            Name of Attestor     26/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
OVERSEAS TELECOMMUNICATIONS
SERVICES

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

                                       39

<PAGE>

For and on behalf of                             Attest               Date
OFFICE DES POSTES ET
TELECOMMUNICATIONS

/s/ Name of Signatory                            Name of Attestor     26/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest

OVERSEAS TELECOMMUNICATIONS
COMMISSION (AUSTRALIA)

/s/ Name of Signatory                            Name of Attestor     28/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
P.T. (PERSERO) INDONESIAN
SATELLITE CORPORATION

/s/ Name of Signatory                            Name of Attestor     29/5/86
--------------------------------                 ----------           -------

For and on half of                               Attest

SEMBAWANG CABLE DEPOT
PRIVATE LIMITED

/s/ Name of Signatory                            Name of Attestor     12/6/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
THE TELECOMMUNICATION
AUTHORITY OF SINGAPORE

/s/ Name of Signatory                            Name of Attestor     29/5/86
--------------------------------                 ----------           -------

                                       40

<PAGE>

For and on behalf of                             Attest               Date
VIDESH SANCHAR NIGAM LTD.

/s/ Name of Signatory                            Name of Attestor     23/5/86
--------------------------------                 ----------           -------

                                       41<PAGE>

                                                                   EXHIBIT 10.24

                    MEDITERRANEAN CABLE MAINTENANCE AGREEMENT

--------------------------
  Confidential Treatment has been requested with respect to the portions of
this agreement marked with three asterisks (***) and the redacted material
has been filed separately with the Securities and Exchange Commission.

<PAGE>

                                     MECMA 2

                    MEDITERRANEAN CABLE MAINTENANCE AGREEMENT

--------------------------------------------------------------------------------

MECMA shall come into effect on 1st JANUARY 1999 and will incorporate the
following Articles outlining the following arrangements, responsibilities and
requirements of the Agreement:

ARTICLES

1.       Definitions
2.       Previous Agreements
3.       Purpose of the Agreement
4.       Management Committee
5.       Provision of Cableships and Base Ports
6.       Use of Cableships
7.       Maintenance facilities on board the Cableships
8.       Use and Operation of the Depot(s)
9.       Use of Spare Submersible Plant
10.      Transfer of Spare Submersible Plant
11.      Notification of Cableship Requirement
12.      Planning and Direction
13.      Cableship Base Port
14.      Clearances
15.      Periods of Cableship Unavailability
16.      Prerogatives of the Commander
17.      Distress and Salvage
18.      Inclusion and Deletion of Additional Parties and Scheduled Cables
19.      Basis of Cableships Cost Allocation
20.      Billing, Accounting and Payment Arrangements
21.      Responsibility for the Ships Schedules and Reports
22.      Liability and Indemnity
23.      Insolvency
24.      Insurance
25.      Force Majeure
26.      Duration of Agreement
27.      Governing Law
28.      Arbitration
29.      Relationship of the Parties
30.      Status of Cableships and Associated Facilities
31.      Amendments

<PAGE>

32.      Assignments
33.      Execution and Counterparts
34.      Interpretation
35.      Entire Agreement
36.      Headings
37.      Representatives and Correspondence
38.      Notices
39.      Publicity
40.      Confidential Information
41.      Performance of Agreement
42.      Severability
43.      Waiver

<PAGE>

It also includes a list of Schedules, which outline the technical aspects,
interested parties and provide the instruments for pricing and costing.

SCHEDULES

A.     List of parties
       A1.    List of Parties to this Agreement - Maintenance Authorities
       A2.    List of Parties to this Agreement - Cableships Operators

B.     List of Scheduled Cables

C.     Cableships Fixed Standing Charges allocation and Running Costs
       C1.    Standing Charges
       C2.    Running Costs
       C3.    Estimated for 1998

D.     MECMA and alternative Depots

       D1.    CATANIA Depot
       D2.    KALAMATA Depot
       D3.    LA SEYNE/MER Depot
       D4.    VALENCIA Depot
       D5.    Other Depots

E.     Proforma Document of Accession

F.     Previous Cableship Agreements

G.     Management Committee Terms of Reference

H.     Basic Cableship Technical Criteria

       H.0.   BASIC CABLESHIP TECHNICAL CAPABILITIES
       H.1.   CS CROZE
       H.2.   CS TELIRI
       H.3.   CS TENEO
       H.4.   CS CERTAMEN
       H.5.   STANDARD/SPECIFIC CABLES

I.     Representatives of the Parties and Mailing addresses and contacts for
       Financial and Maintenance Purposes

J.     Sailing/repair standard duration

<PAGE>

1.     DEFINITIONS

In this Agreement, the following terms shall have the meaning hereby assigned to
them:

<TABLE>
<S>                                          <C>

"AGREEMENT"                                   Means this Agreement, including any amendments.  This
                                              Agreement may also be referred to as "MECMA".

"APPOINTED PARTY"                             Means a Party designated from time to time
                                              by the Management Committee for performing any
                                              possible duties assigned to it and for preparing
                                              any document pursuant to this Agreement.

"ASSIGNED PORT"                               Means the port from which a Cableship is at
                                              any given time required to operate under this
                                              Agreement pursuant to the Cableship Programme and
                                              may include, where appropriate, its Base Port.

"AVAILABLE                                    Means, for a Cableship, when it is not unavailable
                                              for any of the reasons described in Article 15 and
                                              "Availability" shall be construed accordingly.

"AVAILABLE CABLESHIP DAYS"                    Means those days during a Financial Year
                                              when an individual Cableship or the
                                              Cableships collectively, as the context
                                              requires, are Available.

"BASE  PORT"                                  Means the port identified as such in Article
                                              5a, where the relevant Cableship will
                                              normally be based.

"CABLESHIP"                                   Means any of the Vessels identified in Article 5(a).

"CABLESHIP FIXED STANDING                     Means the annual amount indicated in, or determined in
CHARGES"                                      accordance with Article 19(a), 19(b), and 19(c) for the
                                              designated Cableship.

"CABLESHIP OPERATORS"                         Means the Parties responsible for the
                                              operation of the Cableships and identified
                                              as such in Article 5 for the relevant
                                              Cableship; "Cableship Operator" shall mean
                                              anyone of such Parties.

"CABLESHIP PROGRAMME"                         Means the programme showing the activities, locations
                                              and movements of the Cableships as more particularly
                                              described in Article 6.
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>

"CENTRAL BILLING PARTY"                       Means the Party responsible for: (a) performing all
                                              billing and associated financial functions under this
                                              Agreement: (b) Assembling the budget and actual data
                                              to be received from Ships Operators. This Party may
                                              also be referred to as "CBP".

"C&MA"                                        Means, for any Scheduled Cable, the construction and
                                              maintenance agreement, or equivalent governing
                                              agreement, which has been executed by the owners of
                                              that Scheduled Cable.

"COMMANDER"                                   Means the person designated as such by the Cableship
                                              Operator and charged with the responsibility for the
                                              safety and day-to-day operation of its Cableship and
                                              safety of the Cableship personnel.

"CONSTRUCTIVE TOTAL LOSS"                     Means a situation where the cost of repairs to the
                                              Cableship and/or replacement thereof equals or exceeds
                                              the insured value.

"DOMESTIC CONSUMER PRICE                      Means the relevant Consumer Price Index for all items
INDEX"                                        which is a monthly statistic officially published in "Main
                                              Economic Indicators" by OECD, which indicates on a
                                              weighted average price index basis the current overall
                                              rate of inflation for each country.

"EASTERN PORT"                                Means an Assigned Port located in the Area east of
                                              20(0)00E longitude.

"FINANCIAL YEAR"                              Means consecutive twelve-month periods ending on the
                                              31st of December of each year.

"FIXED STANDING CHARGES"                      Means the annual charge as specified in Schedule C1, which is
                                              charged by the Cableship Operator in connexion with its Cableship
                                              and associated services.

"MAINTENANCE & IMPROVEMENT"                   Means work carried out on a MECMA Cable involving the use
                                              of a Cableship, at the request of a Maintenance Authority
                                              in order to reduce the susceptibility of the MECMA
                                              Scheduled Cable to future service-affecting faults.
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>

"MAINTENANCE AUTHORITY"                       Means any Party or group of Parties, as listed in Schedule
                                              Al, primarily responsible for, or which acts as agent on
                                              behalf of other parties for the repair and maintenance of
                                              a MECMA Scheduled Cable.

"MANAGEMENT COMMITTEE"                        Means the committee formed by the Parties pursuant to
                                              Article 4.

"MECMA"                                       Means this Agreement.

"NETWORK FIXED STANDING                       Means the provisional annual estimate of the total fixed
CHARGES"                                      amount due to Cableship Operators calculated in
                                              accordance with Article 19 (e).

"OPERATION"                                   Means Repair, Maintenance & Improvement, or other
                                              work performed under this Agreement

"OPERATIONAL ZONE"                            Means the larger of the sea areas including
                                              Mediterranean Sea, Black Sea and Red Sea, bounded
                                              either by the Scheduled Cables or by meridian lines
                                              through Aden in the East and Gibraltar in the West.
                                              The Management Committee may also agree to further
                                              extend the Operational Zone or include additional cables
                                              located in the part of the Atlantic bounded by latitude
                                              41DEG.1ON on the north, latitude 28DEG.N on the South and
                                              longitude 16DEG.15W on the west, as requested by
                                              Maintenance Authorities.

"OUTSIDE WORK"                                Means work outside the terms of this Agreement carried out
                                              by a Cableship and for which neither Standing Charges nor
                                              Running Costs are chargeable in any manner under this
                                              Agreement.

"PARTIES"                                     Means the parties identified in Schedule A which have
                                              signed this Agreement on the signature page hereto;
                                              it includes any party which is subsequently admitted
                                              under Article 18 and has signed an agreement in the
                                              form provided in Schedule E hereto; Party shall mean
                                              any one of such.

"PIBOR"                                       Means the Paris Interbank Offered Rate calculated by
                                              AFB (Association Francaise des Banques) and Dow Jones
                                              Telerate, and based on the arithmetic mean, rounded
                                              to 1/16th of 1 % of the offered interest rates quoted
                                              by the market of reference banks at 11h30 each
                                              working day.
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>

"RFS DATE"                                    Means, for a Scheduled Cable, the date at which the
                                              relevant Maintenance Authority and/or its co-owners
                                              if any agree to place such cable into operation for
                                              customer service.

"REPAIR"                                      Means work carried out on a Scheduled Cable involving
                                              the use of a Scheduled Cableship, at the request of a
                                              Maintenance Authority in order to remedy a fault
                                              suffered by the Scheduled Cable, howsoever caused.

"REFIT"                                       Means statutory maintenance work or any other
                                              maintenance work carried out on a Scheduled Cableship
                                              and identified as "refit" in the Cableship Programme;

"RUNNING COSTS"                               Means incremental costs for a Cableship, as defined
                                              in Schedule C2, incurred in connection with the
                                              operation of a Cableship.

"SCHEDULED CABLE"                             Means any submarine telecommunications cable system
                                              or part thereof to be repaired and maintained under
                                              this Agreement and which is listed in Schedule B.

"SCHEDULED CABLESHIP"                         Means any of the Cableships when assigned to the
                                              Agreement.

"SPARE SUBMERSIBLE PLANT"                     Means the spare submarine cable, repeaters, branching
                                              units and equalisers and other associated spare
                                              submersible parts of a Scheduled Cable.

"SPECIFIC PRACTICES"                          Means any submarine cable maintenance practices and
                                              equipment which are not included in Standard Practices.

"SPECIFIC SCHEDULED CABLE"                    Means a Scheduled Cable which is not a Standard
                                              Scheduled Cable and which requires the use of
                                              Specific Practices in its maintenance.

"STANDARD PRACTICES"                          Means the submarine cables maintenance practises and
                                              the equipment which are specified in Schedule H and
                                              which the Cableships are capable of supporting.

"STANDARD SCHEDULED CABLE"                    Means a Scheduled Cable which is capable of being
                                              maintained in accordance with the Standard Practices.

"STANDBY"                                     Means any period when a Cableship is not engaged on an
                                              Operation but is Available.
</TABLE>

<PAGE>

<TABLE>
<S>                                          <C>

"SUBMERSIBLE PLANT"                           Means that part of a Scheduled Cable that is between
                                              but excludes the respective beach joints of the
                                              landing points.

"TOTAL LOSS"                                  Means a situation where the Cableship is destroyed or
                                              so damaged as to cease to be a thing of the kind
                                              insured, or where the cost of repairs and/or
                                              replacement equals or exceeds the insured value.

"UJ"                                          Means universal jointing which is required for the
                                              Cableships as specified in Schedule H.

"QUJ"                                         Means universal quick jointing which is required for the
                                              Cableships as specified in Schedule H.

"UNITS OF REPARTITION"                        Means units which are allocated to Scheduled Cables
                                              and their respective Maintenance Authorities; the
                                              values of these units are derived as specified in
                                              Schedule B and are specified in Schedule B1 and B2 as
                                              may be revised from time to time pursuant to this
                                              Agreement.
</TABLE>

<PAGE>

2.     COMING INTO FORCE OF THE AGREEMENT AND PREVIOUS AGREEMENTS

Prior to the effective date of this Agreement, certain Parties hereto had rights
and obligations under modified bilateral agreements which are listed in Schedule
F herein (called "previous agreements for the purposes of this Article). Said
Parties agree to take any necessary steps so as to terminate as soon as possible
such previous agreements under their relevant provisions for termination. The
Parties agree that until such termination is effective, the cables to be
maintained and repaired under these existing Cableship agreements will be
maintained and repaired by the Cableship Operators under the same operational
and financial conditions as defined hereafter.

3.     PURPOSE OF THE AGREEMENT

The purpose of this Agreement is to define the terms and conditions under which
the Cableship Operators shall provide to the Maintenance Authorities services
for repairing, maintaining and improving the submersible plant by means of
Cableships and any other appropriate submersible tools at high quality standard,
with the aim of reaching an efficient and economical solution for the mutual
benefit of all the telecommunication operators and users of the cables listed in
Schedule B of this Agreement.

4.     MANAGEMENT COMMITTEE

       (a)    The Parties shall form a Management Committee, whose terms of
              reference are defined in Schedule G, to assist mutual co-operation
              and to ensure the efficient management of all operations required
              by the Agreement.

       (b)    Each and every Maintenance Authority and Cableship Operator shall
              have one representative in the Management Committee.

       (c)    Meetings of the Management Committee shall be held as necessary
              but not less than once a year, at a time and place convenient to
              the majority of the Maintenance Authorities.

       (d)    Meetings of the Management Committee may be convened at the
              discretion of the Chairman and additionally shall be convened by
              the Chairman when requested to do so by one or more Maintenance
              Authorities representatives whose voting rights as outlined in
              Article 4.f herein total at least five (5) percent of the total of
              the voting rights or by any four (4) or more Maintenance
              Authorities representatives regardless of their voting rights. The
              Chairman shall, in normal circumstances, give at least forty five
              (45) days' notice to all representatives of the convening of

<PAGE>

              a meeting of the Management Committee and, at that time, shall
              furnish a proposed agenda therefor.

       (e)    The quorum for any meeting shall be at least fifty percent of the
              Maintenance Authorities (present or represented), who represent at
              least three quarters of weighted votes (as defined in Article 4.f
              below), such quorum to be maintained throughout the meeting.

       (f)    Voting rights in the Management Committee shall be held only by
              Maintenance Authorities, on the basis of the percentage of
              "Liability for Payment" for each Maintenance Authority as shown in
              Schedules B.1.1, B.2.1 and B.3 of the Agreement, and listed in
              Schedule A.I. A Maintenance Authority's representative may attend
              meetings and vote as necessary on behalf of more than one
              Maintenance Authority providing advance notice to this effect is
              provided to the Chairman by the Maintenance Authorities being
              represented.

       (g)    The Chairman shall be elected by a simple majority of the
              Maintenance Authorities' representatives present and voting at a
              meeting, such Chairman to serve thereafter until the next meeting.

       (h)    The Management Committee shall endeavour to take decisions
              unanimously. However, if it fails to reach unanimous agreement, it
              shall take decision by a simple majority of the weighted vote (as
              defined in Article 4f above cast in the meeting representing at
              least three Maintenance Authorities.

       (i)    If a Management Committee decision has to be taken before a
              meeting can be held, the Chairman shall consult by telephone or
              fax with all the Maintenance Authorities representatives (and
              approach not less than three-quarters of such Maintenance
              Authorities representatives) and request the said representatives
              to make and confirm their views by fax. Any decision shall be
              taken unanimously. However, if it fails, decisions shall be taken
              by a simple majority of the weighted vote (as defined in Article
              4.f above) cast of the answers representing at least three
              Maintenance Authorities. The Chairman shall give prompt notice of
              the results of any such decisions taken by correspondence in this
              way, and any decisions so taken shall be binding all the Parties.

       (j)    To assist it in the performance of the duties assigned to it
              hereunder, the Management Committee shall be at liberty to set up
              any sub-committee or working party as it sees fit and necessary.
              Membership and terms of reference of such sub-committee or working
              party shall be decided by the Management Committee. Such
              sub-committee or working party shall elect a Chairman from among
              participating representatives at each meeting, who shall report
              and make recommendations on its behalf to the Management
              Committee.

<PAGE>

       (k)    All major activities of any sub-committee or working party in
              accordance with its terms of reference and all recommendations to
              the Management Committee shall first be agreed by consensus. If
              they cannot reach a decision, they shall refer the matter to the
              Management Committee.

5.     PROVISION OF CABLESHIPS AND BASE PORT

       (a)    Cableships and Base Ports

              The Cableships and their respective Base Ports are as follows

              (i)    The CS RAYMOND CROZE, which is owned by FRANCE CABLE &
                     RADIO and operated by FRANCE TELECOM and whose Base Port is
                     LA SEYNE SUR MER, FRANCE.

              (ii)   The CS TELIRI or CS CERTAMEN, which are owned and operated
                     by ELETTRA and whose Base Port is CATANIA, ITALY.

              (iii)  The CS TENEO, which is owned and operated by TEMASA and
                     whose Base Port is VALENCIA, SPAIN.

              (iv)   An Eastern Port shall be proposed by the Cableship
                     Operators and approved by the Management Committee to be
                     considered as an Assigned Port for the purpose of this
                     Agreement. Subject to the maximum capacity of the Cableship
                     concerned, and in accordance with Article 9, the Cableship
                     Operators so assigned may be requested by the Maintenance
                     Authorities responsible for the spare plant concerned to
                     carry a stock of all varieties of cable, repeaters and
                     jointing kits to face any kind of Repairs whilst on Standby
                     in an Eastern Port, without sailing back to a west
                     Mediterranean cable depot.

              On and from the date specified in Article 26 herein, the Repair
              and Maintenance & Improvement of the Scheduled Cables shall be
              carried out by the three Cableships, such Cableships being as
              specified in Schedule H.

              Notwithstanding the provisions of Article 15, in the event of the
              Parties requiring a cableship, in addition to the Cableships
              listed in Article 5a, to be permanently entered into this
              Agreement such additional cableship shall only be entered subject
              to the following conditions: - an Amendment shall be required to
              this Agreement in accordance with Article 31;

<PAGE>

              -such additional cableship shall be selected for inclusion in this
              Agreement only by means of an open tender invitation and
              adjudication exercise which shall be offered to all known
              qualified cableship suppliers.

       (b)    Cableship Programme

              The Cableships shall be primarily assigned to undertake Repair,
              Maintenance & Improvement under this Agreement and shall be made
              available according to a Cableship Programme so as to have at
              least two Cableships permanently available for the Repair,
              Maintenance & Improvement of all Scheduled Cables as listed in
              Schedule B in the Operational Zone as detailed in Article 6 below.
              This Cableship Programme shall also include the periods of
              coverage from an Eastern Port as may be agreed by the Management
              Committee in accordance with Article 13. Normally these periods
              will amount not less than 6 months per Agreement year.

       (c)    Each Cableship Operator at the outset of this Agreement
              individually warrants, and will exercise due diligence throughout
              the term of this Agreement to ensure that the Cableship it
              provides under this Agreement is tight, staunch and strong and fit
              for telecommunications cable work and each Cableship Operator
              shall exercise due diligence to maintain its Cableship to ensure
              that it is equipped with the necessary gear to a standard to
              enable the Cableship Operator to fulfil its obligations under this
              Agreement. Each Cableship Operator shall ensure that when at sea
              its Cableship is furnished with a complete complement of suitably
              qualified and competent officers and seamen for the proper
              functioning of the Cableship so as to fulfil the Cableship
              Operator's obligations under this Agreement.

       (d)    The Cableship Operator shall carry out Repair and Maintenance &
              Improvement expeditiously and in accordance with internationally
              accepted standards in use in other agreements, and may be subject
              to reasonable penalty to be defined by the Management Committee
              if, under normal circumstances, the sailing time from her Assigned
              Port or repair time on cable ground exceeds substantially or
              repeatedly the standard duration as given in Schedule L, and does
              not remedy such failure after receipt of notice from the
              Management Committee specifying such failure. The Cableship
              Operator shall not be responsible if he can prove the absence of
              negligence and wilful misconduct.

              If, in the opinion of the Cableship Operator, a repair requires
              the use of equipment in addition to the Cableships' normal cable
              repairing gear, such additional equipment including but not
              limited to diving services and support vessels, then the Cableship
              Operator shall use reasonable endeavours to provide, with the
              consent of the Maintenance Authority responsible for a particular
              operation, such

<PAGE>

              additional services and equipment as it deems necessary to carry
              out any such repair in an expeditious manner. The cost of such
              additional facility shall be regarded as Running Costs and charged
              as follows:

              (i)    the cost of additional facilities provided directly in
                     respect of a particular repair or maintenance operation
                     shall be charged directly to that operation in accordance
                     with Article 19(j) and

              (ii)   any costs incurred in making such additional facilities
                     generally available, including but not limited to annual
                     retainers in respect of diving services and other equipment
                     hire or depreciation charges, shall be allocated among all
                     appropriate Scheduled Cables in accordance with Article
                     19(p).

       (e)    Each Cableship Operator shall ensure that its Cableship shall meet
              the technical criteria agreed between and amongst the Parties and
              attached hereto as Schedule H. Should any of the Maintenance
              Authorities require any improvements, modifications or additions
              to be carried out to the Cableships which are beyond the agreed
              technical criteria defined in Schedule H, then the nature and cost
              of such improvements and modifications and associated increase to
              the Cableship Fixed Standing Charges shall be subject to the prior
              agreement of the Management Committee and the Cableship Operator
              before such improvements and modifications are carried out.

       (f)    For the duration of this Agreement, additional facility (in terms
              of Cableships and any other facility) may be added to this
              Agreement by written agreement of all the Parties to this
              Agreement.

6.     USE OF CABLESHIPS

       (a)    The Cableships shall be used primarily for the Repair of all the
              Scheduled Cables when the Cableships Standing Charges are borne by
              the Parties under this the Agreement.

       (b)    Subject to such requirements being satisfied, the Cableships shall
              be used for the Maintenance & Improvement of the Scheduled Cables
              on an interruptible basis during the periods when the Cableship is
              assigned to the Agreement. The relevant Maintenance Authority
              shall provide the Management Committee with details of the nature,
              duration and location of the proposed Maintenance & Improvement
              Work. Such a work shall require the prior agreement of the
              Management Committee. The decision of the Management Committee
              shall be given to the relevant Maintenance Authority within 10
              days. Upon receipt of a request from a Maintenance Authority for
              the repair of a Scheduled Cable, the relevant Cableship Operator
              shall immediately terminate such Maintenance & Improvement Work.

<PAGE>

       (c)    The Cableship Operators shall agree amongst themselves a Cableship
              Programme in accordance with Article 5 (b). Within the last month
              of each financial year, the Cableship Operators shall submit a
              Cableship Programme for the coming financial year to the
              Management Committee for approval. For subsequent modifications of
              the Cableship Programme required during the course of the
              financial year, the Cableship Operators shall seek the prior
              agreement of the Management Committee. The decision of the
              Management Committee shall be given to the Cableship Operators
              within 10 days. Provided that the requirements as set forth in
              Article 5(b) are met, the approval of a Cableship Programme
              amendment by the Management Committee shall not be unreasonably
              withheld.

       (d)    The Cableship Operators shall have the opportunity to perform
              Outside Works when the Cableship is assigned to the Agreement.
              Such a non-interruptible work shall require the prior agreement of
              the Management Committee. The decision of the Management Committee
              shall be given to the relevant Cableship Operator within 10 days.

       (e)    The Cableship Operators shall have the opportunity to perform crew
              training on an interruptible basis when the Cableship is assigned
              to the Agreement. The relevant Cableship Operator shall provide
              the Management Committee with details of the nature, duration and
              location of the proposed crew training. Such a work shall require
              the prior agreement of the Management Committee. The decision of
              the Management Committee shall be given to the relevant Cableship
              Operator within 10 days. Upon receipt of a request from a
              Maintenance Authority for the repair of a Scheduled Cable, the
              relevant Cableship Operator shall immediately terminate such crew
              training.

       (f)    Each Cableship shall schedule within the Cableship Programme, a
              period of Refit in each Financial Year pro rata to the
              Availability of its Cableship in that Financial Year at the rate
              of 30 refit days per 335 Available Cableship Days. The Cableship
              Operator shall use the refit period so shown actually and solely
              for refit purposes and not for any other purpose within or outside
              the Agreement.

              Any Running Costs incurred during a period of refit, commencing
              from the date of release of the Cableship from Availability as
              approved by the Management Committee and continuing until the date
              of written notification by the relevant Cableship Operator to the
              Management Committee that the Cableship is again Available for
              work on Scheduled Cables, shall be borne by the relevant Cableship
              Operator.

              Standing Charges for periods when a Cableship is undergoing Refit
              shall be borne in accordance with the provisions of Article 19f

<PAGE>

       (g)    Subject to the approval of the Management Committee, and for such
              a period as the Management Committee shall approve, a Cableship
              Operator may nominate another suitable ship operated by the
              relevant Cableship Operator of this Agreement as an alternative to
              its Cableship. Any such alternative Cableship shall comply with
              the basic Cableship technical criteria as defined in Schedule H.
              The Standing Charges and Running Costs of the alternative
              Cableship shall be the effective costs but in no case shall exceed
              those of the replaced Cableship.

       (h)    The operational conditions of intervention of a Cableship, during
              her period of assignment under this Agreement, for the repair and
              the maintenance on a non- Scheduled Cable within the Operational
              Zone shall require the prior agreement of the Management
              Committee.

       (i)    The Management Committee shall have the right, in case of gross
              breach of contract of a Cableship Operator, to suspend the
              activity under this agreement until such Cableship Operator has
              demonstrated to the Management Committee its ability to remedy
              such failure within a reasonable period of time after receipt of
              notice from the Management Committee specifying such failure.

7.     MAINTENANCE FACILITIES ON BOARD CABLESHIPS

       (a)    In order to be capable of fulfilling its obligations under this
              Agreement, each Cableship Operator shall ensure that its Cableship
              is provided with submarine telecommunications cable maintenance
              equipment and fully-experienced personnel as specified in Schedule
              H, such that the Cableship is able to carry out Repairs and
              Maintenance & Improvement on all the Standard Scheduled cables.

       (b)    For Specific Scheduled Cables, it shall be the responsibility of
              the relevant Maintenance Authority to provide to the Cableship
              Operators, in a timely manner, any specialised equipment,
              expertise, training or qualification instructions which are not
              included in the Standard Practices and which are necessary for the
              Repair or Maintenance & Improvement of such Specific Scheduled
              Cable. Except as is provided in Article 18, all costs arising from
              the provision of such specialised equipment , expertise, training
              or qualification instructions to the Cableship Operator shall be
              borne by the relevant Maintenance Authority and shall not be
              charged to this Agreement.

       (c)    An interim period until the total consumption of the Alcatel
              jointing boxes owned by the Maintenance Authorities may be defined
              by the Management Committee before removing the Alcatel jointing
              technology presently available on board the C/S R CROZE and C/S
              TENEO.

<PAGE>

       (d)    The relevant Maintenance Authority shall be responsible for
              ensuring, in a timely manner, that the Cableship Operators are
              provided with cable systems documentation (and any specialised
              equipment and expertise additional to that specified in Schedule
              H) which is necessary for the Repair or Maintenance & improvement
              of Scheduled Cables. The Cableship Operators shall exercise due
              diligence in the safekeeping on board the Cableship of any
              documentation, plant and equipment provided by a Maintenance
              Authority pursuant to this Article.

       (e)    The relevant Maintenance Authority shall be responsible for the
              timely provision of spare submersible plant for each of the
              Scheduled Cables and for determining its required allocation
              between shore depots and Cableships.

8.     USE AND OPERATION OF THE DEPOT(S)

       Each Maintenance Authority shall be responsible for ensuring that elected
       depots or locations are fitted with the suitable technical and
       operational requirements as defined in Schedule D5, in order to enable
       the normal operation of the Cableships required by this Agreement when
       transferring the Spare Submersible Plant to and from them.

9.     USE OF SPARE SUBMERSIBLE PLANT

       In order that Repair and Maintenance & Improvement to the Scheduled
       Cables are carried out with the minimum of delay, or when a Cableship is
       assigned to an Eastern Port, any of the Spare Submersible Plant stored
       either onboard a Cableship or in a Depot or both may be used with prior
       mutual agreement between the Maintenance Authority responsible for the
       said Spare Submersible Plant and the Maintenance Authority responsible
       for carrying out the Repair or Maintenance & Improvement provided always
       that such Submersible Plant is considered by the Maintenance Authorities
       concerned to be technically compatible with the Scheduled Cable to be
       repaired or maintained. Upon completion of the repair, the Cableship
       Operator shall promptly inform the Maintenance Authority concerned of the
       type and quantity of Spare Submersible Plant used and the Maintenance
       Authorities involved shall thereupon determine amongst themselves the
       consequential financial adjustments or replacement arrangements.

10.    TRANSFER OF SPARE SUBMERSIBLE PLANT

       A Maintenance Authority shall be entitled, as a Maintenance & Improvement
       work on an interruptible basis, to require that its Spare Submersible
       Plant be transferred within the MECMA Operational Zone to or from a
       Cableship or depot.

<PAGE>

11.    NOTIFICATION OF CABLESHIP REQUIREMENT

       (a)    A Maintenance Authority requiring a Cableship to carry out a
              Repair shall notify the Cableship Operator concerned. The
              Maintenance Authority concerned shall also copy such notification
              by fax to Management Committee. The relevant Cableship Operator
              shall confirm receipt of such notification in accordance with
              Article 21.

       (b)    When the Cableship Operator receives notification from a
              Maintenance Authority that the services Of the Cableship are
              required to undertake Repair or Maintenance & Improvement on any
              of the Scheduled Cables, the Cableship Operator shall make
              arrangements for the despatch of the Cableship to the required
              place of operation without undue delay, typically within 24 hours,
              subject to Article 5d and Schedule J.

       (c)    Repair and Maintenance & Improvement of the Scheduled Cables shall
              normally be carried out by the requested Cableships. However, if
              at that time the relevant Cableship has already been assigned to
              another Repair or a Maintenance & Improvement operation, the
              concerned Maintenance Authority shall request a second Cableship
              to attend to the fault. If at that time the second selected
              Cableship has already been assigned to another Repair or
              Maintenance & Improvement operation, the concerned Maintenance
              Authority shall request a third Cableship to attend to the fault.
              In the event of the unavailability of the last Available Cableship
              or of a conflict on the assignment of the Cableships or on the
              sequence of the Repair and Maintenance & Improvement operations,
              the following shall apply:

              (i)    The Maintenance Authorities concerned and the Cableship
                     Operators shall consult with one another with a view to
                     agreeing which Cableship should be assigned to which
                     operation and the sequence of the operations.

<PAGE>

              (ii)   If no agreement is reached, Repairs shall be carried out
                     first on the Scheduled Cable with the higher aggregated
                     number of Units of Repartition in Schedule B. When the
                     Scheduled Cable concerned forms part of a multiple segment
                     cable system, the number of UR to be considered for the
                     purpose of Article II (c) (ii) shall be the sum of the UR
                     for all Scheduled Cables that constitute such
                     multiple-segment cable system and whose traffic carrying
                     capacities are adversely affected by the failure
                     necessitating the repair

              (iii)  Notwithstanding the provisions of Articles 11.c.(i) and
                     (ii) above, if the chosen Cableship has left her Assigned
                     Port to carry out a Repair on a Scheduled Cable, such
                     Repair should be completed before assigning the Cableship
                     to another Operation.

       (d)    For the purposes of notification, each Cableship Operator shall
              appoint a representative to whom notification should be sent, as
              given in Schedule I.

       (e)    At the request of the Management Committee, in order to comply
              with the Maintenance Authorities requirements, the Cableship
              Operators may also appoint a representative to whom notification
              should be sent. This representative will liaise with the other
              Cableship Operators without undue delay to define which Cableship
              will carry out the repair.

12.    PLANNING AND DIRECTION

       (a)    The Maintenance Authority requiring any repair or maintenance work
              to be carried out may elect to be responsible for planning and
              directing the Repair or Maintenance & Improvement operation which
              shall be performed by the personnel of the Cableship under the
              control and supervision of the Engineer in Charge of the Cableship
              in accordance with the Cableship Operator's "Cable Working
              Procedures" or "Standing Instructions" as may be amended from time
              to time by the Cableship Operator. If the Maintenance Authority
              does not so elect to be responsible then the Cableship Operator
              shall be responsible for the planning and direction of the Repair
              and Maintenance operation. In all cases the Maintenance Authority
              shall make available to the Cableship Operator the necessary
              technical information required for Repair and Maintenance to be
              carried out to the appropriate Scheduled Cable.

              The Cableship Operator shall always be responsible for the
              planning, direction and performance of the repair unless the
              relevant Maintenance Authority declares otherwise. In this case, a
              format will be signed between the Maintenance Authority and the
              Cableship Operator.

<PAGE>

       (b)    The Cableship Operators hereby agree that any Maintenance
              Authority who elects to be responsible for planning and directing
              any particular Repair or Maintenance & Improvement operation or
              for purposes of observing the operation shall have the right to
              have representatives onboard the Cableship during the relevant
              cable operations. The number of representatives shall be subject
              to accommodation availability, but shall be at least one.

       (c)    The Cableship Operator shall provide any representative of the
              Maintenance Authority with the following facilities aboard the
              Cableship:

              -      accommodation of standard not less than given to officers
                     on board and preferably with single occupancy

              -      full victualing and linen supply whilst on board

              -      access to the normal communication facilities of the
                     Cableship, as required

              -      access to any part of the vessel which the Maintenance
                     Authority `s representative may reasonably deem it
                     necessary for the purpose of representing the Maintenance
                     Authority

              -      access to suitable office accommodation and services

              -      access to the Cableship Operator's operational meetings
                     and/or briefings.

       (d)    The Maintenance Authorities shall appoint one of the authorised
              representatives, should more than one be carried, as a "Senior
              Representative". The- Senior Representative shall be responsible
              for planning and directing the Repair or Maintenance & Improvement
              operation, pursuant to Article 12(a) above.

       (e)    Permission to board the Cableship by any such representative shall
              be subject to the acceptance by the representative of the
              Maintenance Authority of the Cableship Operator's waiver of
              liability requirements set forth in Article 22.

       (f)    Notwithstanding Articles 12(a), (b) and (c) above, the decision of
              the Commander shall be final in carrying out or not carrying out
              any directions or plans issued by the Senior Representative if the
              Commander considers that the carrying out of such instructions
              would endanger the Cableship or the lives or safety of any person
              thereof.

13.    CABLESHIPS BASE PORT

       (a)    At the inception of this Agreement, the Cableships shall be based,
              while on standby for Repair and Maintenance & Improvement, at the
              Base Ports designated in Article 5(a). In order to reduce the
              duration of Repair operations and the associated costs, a minimum
              of basic facilities such as spares storage area, berthing for any
              Cableship, 24 hours access, 365 days per year must be provided.

<PAGE>

       (b)    Should the Management Committee require at some stage during the
              term of this Agreement a Cableship Base Port to be changed
              temporarily to an Assigned Port, in order to provide more
              efficient maintenance coverage of the Scheduled Cables, then the
              Cableship Operator shall implement the necessary change subject to
              the prior agreement of the Cableship Operator(s) involved, which
              agreement shall not be unreasonably withheld, and subject to
              Article 16(a).

       (c)    Any costs incurred as a result of the necessary change of the Base
              Port shall be borne by the Maintenance Authorities and allocated
              to the Maintenance Authorities in proportion to each Scheduled
              Cable's allocated number of Units in accordance with Schedule B.

14.    CLEARANCES

       (a)    When a Cableship is requested to undertake any operation under the
              terms of this Agreement, the relevant Cableship Operator shall be
              fully responsible for obtaining the necessary authorisations to
              carry out the work.

       (b)    The relevant Maintenance & Improvement Authority shall provide all
              reasonable support, as requested by the Cableship Operators, in
              the obtaining of the necessary authorisations and consents.

       (c)    The Cableship Operator shall inform the relevant Maintenance
              Authorities if the necessary authorisations and consents have not
              been received after two working days from the date of making the
              application to the relevant marine authority.

       (d)    In the event of clearances being delayed or refused due to reasons
              beyond the control of the Cableship Operator, as defined in
              Article 25, the Cableship Operator shall not incur any liability
              to any other Party.

15.    PERIODS OF CABLESHIP UNAVAILABILITY

       (a)    A Scheduled Cableship will be considered temporarily unavailable
              for Repair and Maintenance & Improvement of the Scheduled Cables
              in the following circumstances:

              (i)    when the Cableship undergoes periodic refits, or.

              (ii)   when the Cableship undergoes any modification or alteration
                     agreed by the Management Committee, or

              (iii)  From the starting date of any Outside Work undertaken in
                     accordance with Article 6(d), until its conclusion;

<PAGE>

              (iv)   if at any time the Cableship for reasons other than as
                     stated above or for reasons of Force Majeure as defined in
                     Article 25 becomes unavailable other than a total loss or
                     constructive total loss.

              Upon the occurrence of any of the above events, the appropriate
              Cableship Operator shall notify the Chairman of the Management
              Committee promptly and in writing of the expected period of
              unavailability of that Cableship.

       (b)    If a Cableship becomes a total loss or a constructive total loss,
              the Cableship Operator shall notify the Chairman of the Management
              Committee and, if required by the Management Committee, use
              reasonable endeavours to provide a substitute Cableship subject to
              terms and conditions to be proposed by the Cableship Operator, and
              agreed to by the Management Committee.

       (c)    If a Cableship is damaged to such an extent that require repairs,
              the Maintenance Authorities shall bear its Fixed Standing Charges
              up to a maximum period of 90 (ninety) days from the beginning of
              such repairs.

16.    PREROGATIVES OF THE COMMANDER

       (a)    The Cableships shall not be obliged to proceed to, nor remain at,
              or enter any port or place which is, or which is considered by the
              Commander or the Cableship Operator in his or its discretion to be
              dangerous by reason of fever, epidemics, ice, blockade, war,
              hostilities, warlike operations, civil war, civil commotions,
              revolutions, operation of law or any other reason considered by
              the Commander or the Cableship Operator in his or its discretion
              to be dangerous, or to which the Cableships are prohibited from
              going by the government of the nation under whose flag the
              Cableship sails, or by any other government. In the event that a
              Cableship is ordered to such a port or place, the Cableship
              Operator shall seek instructions from the Maintenance Authorities
              as to an alternative port or place. The Cableship Operator shall
              also be entitled to charge any expenses incurred in proceeding
              thereto as a Running Cost to the Maintenance Authority concerned
              in accordance with Article 19.

       (b)    The Cableships shall not be obliged to force ice. If on account of
              ice the Commander considers it dangerous to remain at a port or
              place for fear of the Cableship being frozen in and/or damaged, he
              has liberty to sail to a convenient open place and wait new
              instructions.

       (c)    The Commander shall have liberty to comply with any orders or
              directions as to departure, arrival, routes, port of call,
              stoppages, destination, delivery or otherwise, howsoever given, by
              the government of the nation under whose flag the Cableship sails
              or any department thereof, or by any other government or any

<PAGE>

              department thereof, or any person acting or purporting to act with
              the authority of any such government or any department thereof or
              by any committee or person having, under the terms of the war risk
              insurance on the Cableship, the right to give such orders or
              directions and if by reason of and in compliance with any such
              orders or directions anything is done or is not done, the same
              shall not be deemed a deviation, and performance in accordance
              with such orders or directions shall be a fulfilment of this
              Agreement.

       (d)    The Cableship Operator agrees where possible to use its reasonable
              endeavours to ensure that the duration of any deviation or
              detention under Articles 25 (a) and (b) are kept to a minimum. The
              costs of such deviations or detentions shall be charged as Running
              Costs to the relevant Maintenance Authority in accordance with
              Article 19.

17.    DISTRESS AND SALVAGE

       At all times during the terms of this Agreement the Cableships shall have
       liberty to sail with or without pilots, to tow or be towed, deviate to
       assist vessels in distress or to deviate for the purpose of saving life
       or property, to take aboard craft and land refugees, to secure medical
       attention for any person onboard suffering from accident or illness, to
       deviate for reason of bad weather, to call at any ports for fuel or other
       supplies, or for any other valid or customary cause. The Management
       Committee shall be advised as soon as possible of any of these causes.

18.    INCLUSION AND DELETION OF ADDITIONAL PARTIES AND SCHEDULED CABLES

       (a)    Where any maintenance authority assumes the maintenance
              responsibility for any cable system, or Part thereof within the
              Operational Zone, and if that maintenance authority is not a Party
              to this Agreement then that maintenance authority may, with the
              prior written agreement of the Management Committee, such
              agreement not being unreasonably withheld or delayed, and in
              recognition of the mutual benefits to be obtained, be entered as a
              Maintenance Authority under this Agreement for the balance of the
              term of the Agreement by means of a Document of Accession, as set
              forth in Schedule E, and hence upon the coming into force of such
              document shall be entered into Schedule Al.

       (b)    Subject to the prior agreement of the Management Committee, which
              agreement shall not be unreasonably withheld or delayed, when a
              Maintenance Authority, being a Party to this Agreement, assumes
              responsibility for any cable system, or part thereof within the
              Operational Zone which is not a Scheduled Cable, as given in
              Schedule H 4, and if that Maintenance Authority wishes such cable
              system, or part thereof, to become a Scheduled Cable, then it
              shall be entered into Schedule

<PAGE>

              B1. Other appropriate Schedules shall be amended accordingly. No
              cable shall be permitted to be brought into this Agreement as a
              Scheduled Cable unless, at the date of its intended entry into
              this Agreement, it is reasonably demonstrated to the Management
              Committee that such cable is free of any fault in its submerged
              plant that would affect its availability to carry
              telecommunications traffic.

       (c)    The Parties agree that where a cable is brought into this
              Agreement as a Scheduled Cable and such Scheduled Cable has, at
              the date of its entry into the Agreement, already been qualified
              for jointing by means of UJ or QUJ technology, the Cableship
              Operators shall implement the necessary additional jointing
              training and/or tooling required by the crew of the Cableship to
              permit that Cableship to carry out a Repair to such Scheduled
              Cable. The cost of such additional jointing training and/or
              tooling required shall be borne by the Maintenance Authorities in
              proportion to the UR allocated to them in Schedule B. The
              provisions of this Article shall also apply to a Scheduled Cable
              which becomes qualified for jointing by means of existing UJ or
              UQJ technology during the term of this Agreement.

       (d)    A cable shall be permitted to be brought into this Agreement as a
              Scheduled Cable prior to its RFS date but after the completion of
              its laying operation. However, any Repair to such Scheduled Cable
              which is carried out prior to its RFS date shall be carried out on
              an interruptible basis. The Standing charges applicable to such
              Scheduled cable shall be calculated and billed to the relevant
              Maintenance Authority on a pro rata daily basis from the period of
              its date of introduction into this Agreement until the RFS date of
              such Scheduled Cable. Following the RFS date, of such Scheduled
              Cable, the normal procedures for the calculation and billing of
              the Standing Charges shall apply. During this period of early
              introduction, between the completion of its laying operation up to
              the RFS date, the MECMA cost Allocation Formula as defined in
              Schedule B will apply with k or s equal 0.

       (e)    A Scheduled Cable may be removed from this Agreement in the event
              of that cable being taken out of service.

       (f)    For the duration of this Agreement, a Maintenance Authority shall
              have the right to early withdraw a Scheduled Cable from the
              Agreement provided always that:

              (i)    it shall give at least one year prior written notice of
                     such withdrawal to the other Parties hereto and that

              (ii)   the effective date of withdrawal of such Scheduled Cable
                     shall not occur before five years from the introduction of
                     such Scheduled Cable in this

<PAGE>

              Agreement except if the withdrawal is the result of the occurrence
              of Article 18 (e) above.

       (g)    In the case of Article 18 (a), agreement shall be obtained from
              the Parties as follows:

              (i)    Notification to the Parties of the proposed change in
                     writing or by fax.

              (ii)   Upon the expiry of thirty (30) days from the date of such
                     notification and, except in the event of any Maintenance
                     Authority advising any objections in writing or by fax
                     during such notice period, the relevant Schedules shall be
                     amended and a Document of Accession shall be executed as
                     set forth in Schedule E. All revised Schedules and, where
                     appropriate, certified copies of the Document of Accession
                     shall be distributed to each of the Parties.

              (iii)  In the event that a Maintenance Authority objects in
                     accordance with Article 18 (g)(ii) above, the Management
                     Committee shall decide what action should be taken
                     according to Article 4.

       (h)    In the case of Article 18 (b), agreement shall be obtained from
              the Parties as follows:

              (i)    Notification to the Parties of a request for inclusion in
                     writing or by fax.

              (ii)   Upon the expiry of thirty (30) days from the date of such
                     notification and, except in the event of any Maintenance
                     Authority advising any objection in writing or by fax
                     during such period the relevant Schedules shall be amended.
                     All revised Schedules shall be distributed to each of the
                     Parties.

              (iii)  In the event that a Party objects in accordance with
                     Article 18 (h)(ii) above, the Management Committee shall
                     decide which action should be taken according to Article 4.

       (i)    The Management Committee shall be responsible for administering
              the implementation of this Article on behalf of the Parties.

19.    BASIS OF CABLESHIPIS COST ALLOCATION

       (a)    The respective costs of each Scheduled Cableship shall comprise:

              -      Standing Charges as defined in Schedule C1.

              -      Running Costs as defined in Schedule C2.

<PAGE>

              The Standing Charges for the whole duration of the Agreement shall
              be as shown below for each Cableship in this Agreement.

              The Standing Charges for the first three Financial Years of this
              Agreement are fixed and are not subject to any increase
              (1999/00/01).

              ***

(*)    CS Certamen is to be considered as an Alternate Cableship to CS Teliri

       (b)    At the end of the first Financial Year of this Agreement (1999),
              each Cableship Operator shall advise the Maintenance Authorities
              of its Cableship's Fixed Standing Charges for the fourth Financial
              Year of the Agreement (2002). At the end of the second and each
              subsequent Financial Year thereafter, each CableshipOperator shall
              advise the Maintenance Authorities of its Cableship's Fixed
              Standing Charges for the next unpriced Financial Year forward, and
              this method of Cableship pricing shall be maintained throughout
              the term of the Agreement.

       (c)    For the 4th and subsequent Financial Year, if a Cableship Operator
              requires an increase of the annual Standing Charges, then the
              Cableship Operator shall submit details of such increase for the
              consideration of the Management Committee.

       (d)    The Fixed Standing Charges of Scheduled Cableships shall be
              converted in French Francs using the standard exchange rate dated
              September I st of the year before the Financial Year concerned as
              given in the Newspaper `LES ECHOS' published in Paris. The figures
              in French Francs are used for the evaluation of the Network Fixed
              Standing Charges given in Article 19 (e).

       (e)    The Management Committee shall determine the Network Fixed
              Standing Charges at the beginning of each Financial Year. For each
              Cableship, periods in the Agreement as anticipated in the
              Cableship Schedule shall be taken into account on a daily basis by
              dividing the annual Fixed Standing Charges of the Cableship by
              335.

<PAGE>

The Network Fixed Standing Charges for the first three Financial Years of this
Agreement shall be as follows: (Figures given in French Francs)

***

(*)    Cs Certamen is to be considered as an Alternate Cableship to CS Teliri

(**)   The Network Fixed Standing Charges excludes CBP function and Eastern Port
       additional costs.

       These Network Fixed Standing Charges are based upon the exchange rate
       applicable at the date of the signature of this agreement and shall be
       revised by the CBP according to the evolution of such exchange rates.

       (f)    For each Scheduled Cableship, bills to be paid to Cableship
              Operators shall be prorated amount of such Cableship Fixed
              Standing Charges due for the coming quarter based on the Cableship
              Programme. Such figure shall be abated or adjusted as appropriate
              by any sums due to or already paid to the Cableship Operator
              during the previous quarter in respect of:

              (i)    the Cableship Fixed Standing Charges for periods when the
                     Cableship Programme was modified in accordance with Article
                     6 (c);

              (ii)   the Cableship Fixed Standing Charges for periods of any
                     Outside Work performed in accordance with Article 6 (d);

              (iii)  the Cableship Fixed Standing Charges for periods in excess
                     of 90 days when a Cableship is unavailable in accordance
                     with Article 15(c);

              (iv)   the Cableships Fixed Standing Charges for periods when the
                     Cableship(s) undergo(es) Refit.

       (g)    Cableship Fixed Standing Charges applicable to periods of time
              shall be determined on a daily basis by dividing the annual Fixed
              Standing Charges of the Cableship by a figure of 335.

       (h)    The quarterly Standing Charges invoiced to the Maintenance
              Authorities shall be based on a yearly estimated UR cost. Not
              later than twenty days before the start of each financial year,
              the Management Committee shall agree on the estimated UR cost
              determined by adding the annual Network Fixed Standing Charges in
              accordance with Article 19(e) and by dividing this total amount by
              the total estimated number of Units of Repartition in the network.
              The quarterly Standing

<PAGE>

              Charges billed to each Scheduled Cable shall be calculated by
              multiplying the relevant Units of Repartition by the estimated UR
              cost.

       (i)    For the whole duration of the Agreement, the UR cost shall in no
              case exceed *** and will decrease year by year.

       (j)    As soon as possible after the end of each Financial Year, the
              Management Committee shall approve a final UR cost based on the
              total Fixed Standing Charges, adjusted as appropriate to reflect
              any Outside Work undertaken in accordance with Article 6 (d), and
              the actual number of Units of Repartition according to Schedule B2
              for a given Financial Year. A yearly financial adjustment shall be
              made to take into account appropriate adjustment based on the
              final UR cost.

       (k)    The Running Costs of a Cableship incurred during the period when
              such Cableship is engaged in any Repair or Maintenance &
              Improvement work on a Scheduled Cable, including passage time,
              shall be allocated entirely to the Scheduled Cable involved.

       (l)    In the event of any Cableship being engaged in multiple work
              operations, the Running Costs for the passage time before such
              work starts on the first operation, the time spent in passage
              between the end of each completed operation, and the start of the
              next operation, and the time spent in passage from the end of the
              last operation in the series of operations to the arrival of the
              Cableship at its Assigned port, shall be aggregated and shared to
              the operations in proportion to the distance of each operation
              from the Cableship's Assigned Port.

       (m)    The Running Costs of the Cableship for the entire periods when
              engaged in Outside Work shall be borne wholly by such Outside
              Work.

       (n)    The Fixed Standing Charges of the Cableship for the entire periods
              when not assigned to this Agreement shall be borne wholly by the
              Cableship Operator involved.

       (o)    The Running Costs of a Cableship for the duration of any period
              when engaged in crew training in accordance with Article 6 (e)
              shall be borne wholly by the relevant Cableship Operator.

       (p)    The Running Costs identified in Article 5 (d) (ii) in respect of
              the provision of additional facilities shall be allocated on the
              basis identified in Schedule I amongst the Scheduled Cables having
              been agreed as requiring the availability of such additional
              facilities.

<PAGE>

       (q)    The Cableship Operators agree that if one Cableship is engaged in
              refit and in such circumstances the Cableship is reasonably deemed
              by the Management Committee to be urgently required due to an
              emergency requirement involving coincident faults then the
              Cableship Operator will disengage the required Cableship from
              refit as soon as considered possible. Nothing in this Article
              shall be construed as requiring a Cableship Operator to operate a
              Cableship out of classification in any respect or if in the
              Commander's sole discretion the safety of the Cableship and its
              personnel might be jeopardised by such operation. The costs
              associated with disengaging the Cableship from the refit shall be
              included as Running Costs for that Cableship and allocated to the
              Scheduled Cables in accordance with Article 19(h).

20.    BILLING, ACCOUNTING AND PAYMENT ARRANGEMENTS

       (a)    The billing, accounting and payment arrangements function shall be
              centralised and carried out by a Central Billing Party,
              hereinafter referred to as MECMA Central Billing Party, appointed
              by the Management Committee.

       (b)    The Cableship Operators' bills shall be supplied to the MECMA
              Central Billing Party which shall render invoices to the
              Maintenance Authorities.

       (c)    Each Cableship Operator shall submit quarterly bills to the MECMA
              Central Billing Party on or before the 1st working day of the
              month preceding the quarter to which they relate.

       (d)    The Cableship Operators' bills shall give details of Cableship
              Fixed Standing Charges (including retrospective adjustment) and
              Running Costs. Retrospective adjustments to the amounts billed in
              accordance with Article 19 (g) shall be included and settled as a
              part of the next billing submission to the MECMA Central Billing
              Party.

       (e)    The Cableship Operator shall issue their bills in their local
              currency and such bills shall be payable in their own currency on
              the 7th working day of the third month of the quarter to which
              they relate.

       (f)    In the event that a payment is delayed to a Cableship Operator,
              except delay due to late payments from the Maintenance Authorities
              as defined in Article 20 (m), extended payment charges shall be
              calculated by the MECMA Central Billing Party and paid to the
              Cableship Operator. Extended payment charges shall be computed on
              a simple interest basis at a rate equal to one hundred and twenty
              five percent (125%) of the monthly arithmetic mean of the PlBOR
              for thirty day loans. Such extended payment charges shall be borne
              by all Maintenance Authorities in proportion to their Units of
              Repartition as per Schedule B2, unless such late

<PAGE>

              payment is due to the actions or omissions of the Central Billing
              Party in which latter event the extended payment charges shall be
              to the account of the Central Billing Party.

       (g)    The party responsible for the MECMA Central Billing Party function
              shall charge the cost associated with the performance of the
              Central Billing function. These charges shall be allocated
              according to Scheule B2.

       (h)    Quarterly invoices shall be rendered to the Maintenance
              Authorities by the MECMA Central Billing on the 15th working day
              of the month prior to the quarter in which they apply. Such
              invoices shall be based on information received by the MECMA
              Central Billing Party and shall include:

              -      The quarterly Standing Charges based on the estimated UR
                     cost in accordance with Article 19 (h),

              -      Running Costs as defined in Article 19,

              -      Transfer costs as defined in Article 10,

              The invoices shall be supported with the appropriate documentation
              including copies of the Cableship Operator's bills and the
              Schedules B1 and B2 effective at the time of the billing.

       (i)    As soon as possible after the end of the Financial Year, a yearly
              financial adjustment billing shall be to the Maintenance
              Authorities by the MECMA Central Billing Party. The yearly
              financial billing shall includes the adjustment of Standing
              Charges and some additional costs billed yearly, as follows:

              -      Adjustment of the annual Standing Charges cost taking into
                     account the final UR cost as per Article 19(j);

              -      Adjustment covering variances due to exchange rate
                     fluctuation between the rate used for the billing and the
                     rate in force on the date of the payment;

              -      Financial charges in accordance with Article 20 (f) and
                     Article 20 (m);

              -      The cost of the performance of the Central Billing Party
                     function.

       (j)    Invoices rendered to the Maintenance Authorities shall be issued
              in French Francs at the exchange rate effective at the date of the
              billing and shall be payable in that currency. Such invoices shall
              be payable on the last working day of the second month of the
              quarter to which they relate.

<PAGE>

       (k)    The MECMA Central Billing Party shall provide the relevant
              Maintenance Authorities by fax, or a like means of communication,
              with advice of the date of despatch of all invoices being
              submitted under this Agreement.

       (l)    Schedule B1 identifies the Maintenance Authorities responsible and
              individually liable for the payment of any amounts due under this
              Agreement in respect of each Scheduled Cable.

       (m)    In the event that a payment is delayed by a Maintenance Authority,
              invoices not paid when due shall accrue late payment charges from
              the due date until the day on which it is paid. The late payment
              charges shall be calculated by the MECMA Central Billing Party and
              shall be charged to the defaulting Party. Late payment charges
              shall be computed on a simple interest basis at a rate equal to
              one hundred and twenty five percent (125%) of the monthly
              arithmetic mean of the PIBOR for thirty day loans.

       (n)    if an invoice for a Scheduled Cable remains unpaid for 180 days
              after the due date, the MECMA Central Billing Party shall advise
              the Management Commiftbe and invoice to the other Maintenance
              Authorities a proportional share of the unpaid invoice, including
              a proportional share of the interest incurred. The amounts
              invoiced to such Maintenance Authorities shall be in proportion to
              their number of Units of Repartition. The said amounts paid to the
              MECMA Central Billing Party shall be transferred to the
              Cableship(s) Operator(s) in payment of their outstanding bills.

       (o)    Nothing contained in this Article shall release the defaulting
              Maintenance Authority from its obligations under this Agreement.
              The defaulting Maintenance Authority will continue to be billed
              its share of all Costs in accordance with Articles 20 (h) and (i).
              If the defaulting Maintenance Authority fails to pay any invoice
              within 365 days of its due date, its Scheduled Cables will be
              automatically excluded from the Schedules B. At such time, revised
              schedules, which will exclude the Schedule Cables and the
              associated Maintenance Authorities, shall be issued. The
              defaulting Maintenance Authorities will continue to be excluded
              from Schedules B until all outstanding invoices, including
              applicable interest as specified in Article 20 (m), have been paid
              in full.

       (p)    In the event that a Maintenance Authority for a Scheduled Cable
              has failed to pay a bill within 180 days of the due date, and that
              Scheduled Cable has more than one Maintenance Authority, the
              Central Billing Party shall notify such other Maintenance
              Authority(ies) for that cable of such defaults for non-payment.
              Notwithstanding Article 20 (n) and (o), a Maintenance Authority
              for a Scheduled Cable having more than one Maintenance Authority
              shall have the option, at any

<PAGE>

              time within 365 days of the due date of a bill, to pay any unpaid
              bill including any applicable interest of another Maintenance
              Authority for that cable, and upon such payment, the defaulting
              Maintenance Authority shall no longer be deemed to be in default
              for non-payment of such invoice and the cable involved shall not
              be excluded from the Schedules B.

In such case, the Maintenance Authority which accepts the option to pay any
unpaid bill of another defaulting Maintenance Authority for a specific system,
is entitled to exercise the right of vote instead of the defaulting Maintenance
Authority for such system inside the Management Committee.

       (q)    Upon receipt by the MECMA Central Billing Party from thek
              defaulting Maintenance Authority or from another Maintenance
              Authority for a Scheduled Cable having more than one Maintenance
              Authority of any amount paid by the other Maintenance
              Authority(ies) in accordance with Article 20 (n), any such amounts
              shall be distributed to the other Maintenance Authorities in the
              same proportions as those Maintenance Authorities paid to the
              MECMA Central Billing Party under Article 20 (n).

       (r)    Recognising that some Maintenance Authorities within various
              Construction & Maintenance Agreements have appointed a central
              billing party in respect of their Scheduled Cables, the MECMA
              Central Billing Party shall forward the original invoice to that
              central billing party for payment. Information copies of invoice
              shall be forwarded at the same time to all the relevant
              Maintenance Authorities. The central billing parties appropriate
              to Scheduled Cables under this Agreement are indicated in Appendix
              3 of the pro-forma document of accession.

       (s)    Notwithstanding Article 20 (r) the respective Maintenance
              Authorities shall remain responsible and Individually liable for
              all payments due by them under this Agreement and as indicated in
              Schedule B1.

21.    RESPONSIBILITIES FOR THE SHIPS SCHEDULES AND REPORTS

       (a)    Not later than two months before the start of each Financial Year,
              each Cableshp Operator shall provide the Management Committee with
              an estimate of Running Costs for its Cableship, in accordance with
              the format set out in Schedule C3.

       (b)    When a Cableship is notified to commence an Operation or when a
              Cableship changes operational status, the Cableship Operator shall
              notify the Management Committee by facsimile as specified below.

              -      Upon receipt by a Cableship Operator of written notice that
                     its Cableship is required to carry out a repair in
                     accordance with Article 11, the Cableship

<PAGE>

                     operator shall, within 24 hours, transmit to the Management
                     Committee a notification of commencement of Cableship
                     Operation,

              -      For the duration of the repair, the relevant Cableship
                     Operator shall provide the relevant Maintenance Authority
                     and relevant terminal parties with daily progress reports
                     including a log of the day's events, an indication of the
                     estimated number of hours remaining until the completion of
                     the final splice, an indication of the times when the
                     Cableship is likely to require co-operation from the
                     relevant terminal parties, information on the nature of the
                     fault, any possible delays and any equipment and procedural
                     problems encountered

       (c)    Upon completion of such Operation, the Cableship Operator shall;
              within 24 hours, transmit to the Management Committee a
              notification of completion of a Cableship Operation.

       (d)    Upon a Cableship's change in operational status e.g. Standby,
              Repair, Maintenance & Improvement, Refit, Crew Training and
              Outside Work, the Cableship Operator shall transmit to the
              Management Committee a notification of the change in status.

       (e)    Within one month after the completion of a Repair, the relevant
              Cableship Operator shall provide to the relevant Maintenance
              Authority a detailed repair report including the repair synopsis
              in English language

       (f)    Cableship reporting arrangements for Maintenance & Improvement or
              other work of an interruptible nature shall be agreed between the
              relevant Cableship Operator and the relevant Maintenance Authority
              responsible for such work

       (g)    The Cableships Operators shall as appropriate keep such records,
              vouchers, accounts, or reproduction thereof in whatever form of
              all costs incurred in connection with the Cableship Running Costs,
              to support their billing of such costs to and amongst the
              Maintenance Authorities for a period of not less than six years
              from the date such costs were incurred and shall make such
              records, vouchers, and accounts available at all reasonable times
              for inspection by the Maintenance Authorities.

       (h)    The Cableship Operators shall keep Repair and Maintenance &
              Improvement records relating to Scheduled Cables for a period of
              not less than six years from the date of issue of such records and
              the Maintenance Authorities shall have the right to obtain copies
              of such records upon request.

22.    LIABILITY AND INDEMNITY

<PAGE>

       (a)    Notwithstanding anything else contained in this Agreement, the
              Maintenance Authorities shall not be responsible for loss of or
              damage to the property of the Cableship Operators or of their
              Contractors and sub-Contractors, including the Cableships, or for
              personal injury or death of the employees of the Cableship
              Operators or the loss of or damage to the property of the same
              arising out of or in any way connected with the performance of
              this Agreement, except if such loss, damage injury or death is
              caused by the wilful act or negligence of the Maintenance
              Authorities, their employees or Contractors. The Cableship
              Operators shall indemnify, protect, defend, hold harmless and
              waive all rights of recourse against the Maintenance Authorities
              from any and against all claims, costs, expenses, actions,
              proceedings, suits, demands and liabilities whatsoever arising out
              of or in connection with such loss, damage, personal injury or
              death.

       (b)    Notwithstanding anything else contained in this Agreement, the
              Cableship Operators shall not be responsible for loss of or damage
              to, or any liability arising out of any cable carried by the
              Cableships, the Property of the Maintenance Authorities (including
              the Scheduled Cables) or of their employees or Contractors (other
              than the Cableship Operators) or of anyone on board the Cableship
              or present in the Depot at the behest of the Maintenance
              Authorities, arising out of or in any way connected with the
              performance of this Agreement, except if such loss or damage is
              caused by the wilful act or negligence of the Cableships
              Operators. The Cableship Operators shall not be responsible for
              injury or death unless it is proved that such injury or death is
              caused by wilful act or negligence of the Cableship operators,
              their employees or Contractors. The Maintenance Authorities shall
              indemnify, protect, defend hold harmless and waive all rights of
              recourse against the Cableship Operators from any and against all
              claims, costs, expenses, actions, proceedings, suits, demands and
              liabilities whatsoever arising out of or in connection with such
              loss, damage, personal injury or death.

       (c)    Neither the Cableships Operators nor the Maintenance Authorities
              shall be liable to each other for any indirect or consequential
              damages or expenses whatsoever arising out of or in connection
              with the performance of this Agreement, including but not limited
              to, loss of use, loss of profit or revenue or any loss of business
              opportunity and cost of insurance.

       (d)    When the Cableship Operators or the Maintenance Authorities may
              seek an indemnity under the provisions of this Agreement or
              against each other in respect of a claim brought by a third party,
              the Maintenance Authorities shall seek to limit their liability
              against such third party.

23.    INSOLVENCY

       Upon the occurrence of each or any of the following events:

<PAGE>

       (i)    if, except for the purposes of re-organisation, any Party is wound
              up or a petition is presented or an order is made or a resolution
              is passed for the winding up of any Party or a meeting is convened
              for the purpose of considering any such resolution;

       (ii)   if any Party is placed under official management, that is if,
              pursuant to a resolution of creditors or members of that Party or
              an order of a court, a person is appointed to take custody of all
              or part of the property of that Party and to conduct its business
              and manage its affairs and comply with the legislation in respect
              of companies applicable in the place where he is so appointed, or
              if any Party causes a meeting of its members or creditors to be
              summoned for the purpose of placing it under official management;

       (iii)  if any Party makes default under any charge or security in favour
              of any creditor of that Party;

       (iv)   if any indebtedness of any Party becomes due and payable prior to
              the stated maturity thereof as a result of a default or is not
              paid upon the maturity thereof;

       (v)    if an inspector of all or any part of the affairs of any Party is
              appointed pursuant to the legislation in respect of companies
              applicable in the place of incorporation of that Party or in a
              place where that Party carries on business;

       (vi)   if a compromise or arrangement is proposed between any Party and
              its creditors or any class of them or if an application is made to
              a court for an order summoning a meeting of creditors or any Class
              of them of any Party;

       then any Party affected by each or any of the above listed events shall
       immediately inform all the other Parties thereof, and all the Parties
       shall then consult to decide what further action is necessary.

24.    INSURANCE

(a)    Each Cableship Operator respectively shall be responsible for obtaining
       its necessary insurance coverage.

(b)    If requested by a Maintenance Authority, the Cableship Operator shall
       provide individually and on a confidential basis to that Maintenance
       Authority copies of relevant insurance policies and, if applicable,
       copies of the booklet giving details of the Protection and Indemnity
       cover and proper evidence of the payment of all premiums.

<PAGE>

25.    FORCE MAJEURE

       (a)    The Cableship Operator shall not be liable for any inability or
              delay in carrying out work on the Scheduled Cables if prevented
              from doing so for reasons beyond their reasonable control.

       (b)    In particular, Cableships Operators shall not be liable for any
              delay or failure to carry out their duties and obligations hereto
              arising out or resulting from (including but not limited to):

              -      Fire, unless caused by the actual fault or privity of a
                     Cableship Operator.

              -      Perils, dangers, and accidents of the sea or other
                     navigable waters.

              -      Act of God.

              -      Act of War.

              -      Act of public enemies.

              -      Arrest or restraint of princes, rulers or people, or
                     seizure under legal process.

              -      Quarantine restrictions.

              -      Act of omission of the Maintenance Authority, its agent or
                     the Maintenance Authority's authorised representative(s).

              -      Strikes or lockouts or stoppage or restraint of labour from
                     whatever cause, whether partial or general.

              -      Riots and civil commotions.

              -      Saving or attempting to save life or property at sea or to
                     take aboard or land refugees.

              -      Loss or damage arising from inherent defect, quality or
                     vice of the Maintenance Authorities plant and equipment.

              -      Latent defects not discoverable by due diligence.

              -      Pirates or assailing thieves.

              -      Adverse weather conditions.

<PAGE>

26.    DURATION OF AGREEMENT

       This Agreement shall become effective on January 11, 1999 and shall
       expire 5 years from that date, but may continue beyond that date by
       agreement amongst the Parties.

       At least one year before the date of such expiry, the Parties shall
       decide on a possible continuance of this agreement on a year by year
       renewal basis.

27.    GOVERNING LAW

       This Agreement shall in all respects be governed by and be construed in
       accordance with the laws of Switzerland - Canton of Geneva.

28.    ARBITRATION

       (a)    All disputes arising in connection with this Agreement and which
              cannot be settled by amicable negotiation to the mutual
              satisfaction of the Parties concerned by, the dispute shall be
              finally settled under the Rules of Conciliation and Arbitration of
              the International Chamber of Commerce in Paris as in effect on the
              date hereof by one or more arbitrators appointed in accordance
              with the said Rules.

       (b)    The site of the arbitration shall be Geneva (Switzerland). The
              language of the arbitration shall be English. The arbitrators will
              apply the procedural rules of arbitration of the International
              Chamber of Commerce. Any award rendered shall be final and
              conclusive and judgement thereon may be rendered in any court
              having jurisdiction for its enforcement.

       (c)    The performance of this Agreement by the Parties shall continue
              during such arbitration or legal proceedings.

29.    RELATIONSHIP OF THE PARTIES

       The relationship between or amongst the Parties shall not be that of
       partners and nothing herein contained shall be deemed to constitute a
       partnership between them, and the common enterprise amongst the Parties
       shall be limited to the express provisions of this Agreement.

30.    STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES

       Nothing herein shall be construed as a demise or charter of a Cableship
       to any of the Parties.

<PAGE>

31.    AMENDMENTS

       (a)    This Agreement and any of the provisions herein, unless as
              expressly provided for herein, may only be altered or added to in
              writing signed by a duly authorised person on behalf of each
              Party.

       (b)    Except as otherwise provided for herein, Schedules B1, B2 & B3,
              C3, F1 and I only may be amended subject to agreement by fax
              between and amongst all the Parties.

32.    ASSIGNMENT

       No Party shall, without the written consent of all the other Parties,
       which consent shall not be unreasonably withheld, sell, transfer or
       dispose of its rights or obligations under this Agreement except to its
       parent/subsidiary company or a statutory successor by operation of law.

33.    EXECUTION AND COUNTERPART

       This Agreement shall be executed in 33 counterparts in the English
       language and each counterpart when delivered shall be considered an
       original.

       New Maintenance Authorities shall be added to this Agreement by means of
       a Document of Accession as set forth in Schedule E and the Document of
       Accession shall for each such addition be executed in two counterparts in
       the English language and certified copies shall be delivered to all the
       Parties.

34.    INTERPRETATION

       All references to the Party(ies), Article(s), and Schedule(s) refer to
       the Party(ies), Article(s) and Schedule(s) under this Agreement. In
       addition, and where the context so requires, the singular shall be taken
       to mean the plural and the plural shall be taken to mean the singular.

35.    ENTIRE AGREEMENT

       This Agreement together with the Schedules hereto constitutes the entire
       agreement between the Parties in relation to its subject matter and
       supersedes all prior verbal or written understandings between and among
       the Parties.

       This Agreement supersedes all prior verbal or written understandings
       between the Parties and constitutes the entire agreement with respect to
       the subject matter of this Agreement

<PAGE>

       This Agreement includes the following documents which are attached hereto
       and incorporated herein by reference.

       A.     List of Parties

              Al.    List of Parties to this Agreement - Maintenance Authorities

              A2.    List of Parties to this Agreement - Cableship Operators

       B.     List of Scheduled Cables

       C.     Cableships fixed Standing Charges allocation and Running Costs

              C1.    Standing Charges

              C2.    Running Costs

              C3.    Estimated for 1998

       E.     Proforma Document of Accession

       F.     Previous Cableship Agreements

       G.     Management Committee Terms of Reference

       H.     Basic Cableship Technical Criteria

              H.O.   BASIC CABLESHIP TECHNICAL CAPABILITIES
              H.I.   CS CROZE
              H.2.   CS TELIRI
              H.3.   CS TENEO
              H.4.   CS CERTAMEN
              H.5.   STANDARD/SPECIFIC CABLES

       I.     Representatives of the Parties and Mailing Addresses and Contacts
              for Financial and Maintenance Purposes

       J.     Sailing/repair standard duration

Schedule D is not part of the Entire Agreement

36.    HEADINGS

<PAGE>

       For the purposes of interpretation of this Agreement and Schedules, all
       headings thereof shall be deemed not to form part of this Agreement.

37.    REPRESENTATIVES AND CORRESPONDENCE

       The Parties shall inform each other of their representatives for the
       purpose of correspondence between the Parties.

38.    NOTICES

       (a)    Any notice or consent required or permitted hereunder shall be
              given in writing or confirmed in writing as the context so
              requires and shall be deemed to be duly given if deposited by hand
              at, or despatched by airmail of the most expeditious class or by
              fax or electronic mail addressed to the registered office last
              quoted by the Party to whom it is addressed.

       (b)    Unless it is expressly provided for herein or otherwise agreed,
              any such notice or consent shall be deemed to be served ten days
              from the date of despatch.

39.    PUBLICITY

       Any publicity or news releases regarding this Agreement shall not be
       issued or published without the prior agreement of the Parties.

40.    INFORMATION

       Information furnished by one Party to another shall be kept confidential
       by the Party receiving it and shall be used only for the purposes of this
       Agreement, and may not be used for any other purposes without the prior
       written consent of the Party owning the Information, unless such
       Information:

       (i)    was previously known to the receiving Party free of any obligation
              to keep it confidential, or

       (ii)   has come into the public domain other than by a breach of
              confidentiality by the receiving Party, or

       (iii)  is received from a third party without similar restriction and
              without breach of this Agreement, or

<PAGE>

       (iv)   is necessary or proper disclosure under any applicable law, rule
              or regulation or pursuant to the direction of any Governmental
              Entity or Agency having jurisdiction in any country of the
              Parties.

41.    PERFORMANCE OF AGREEMENT

       The performance of this Agreement by the Parties hereto shall be
       contingent upon either:

              (i)    the continued operation of at least one Scheduled Cable; it
                     being understood that the Parties shall consult each other
                     in such event and shall confer to decide further action
                     including the termination of this Agreement

       or

              (ii)   the necessary government approvals.

42.    PERFORMANCE OF AGREEMENT

       The performance of this Agreement by the Parties hereto shall be
       contingent upon either:

              (i)    the continued operation of at least one Scheduled Cable; it
                     being understood that the Parties shall consult each other
                     in such event and shall confer to decide further action
                     including the termination of this Agreement.

       or

              (ii)   the necessary government approvals.

43.    SEVERABILITY

       If any of the provisions of this Agreement shall be invalid or
       unenforceable, such invalidity or unenforceability shall not invalidate
       or render unforceable the entire Agreement, but rather the entire
       Agreement shall be construed as if not containing the particular invalid
       or unenforceable provision or provisions and the rights and obligations
       of the parties shall be construed and enforced accordingly.

44.    WAIVER

       The waiver of any breach of any term or condition of this Agreement shall
       not be deemed to be a waiver of any other breach of the same or any other
       term or condition of this Agreement. No waiver shall be valid unless it
       is written and signed on behalf of the Party making the waiver.

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