Document:

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                                                                    Exhibit 10.2

                          SECOND AMENDED AND RESTATED
                             SHAREHOLDERS AGREEMENT

                                   dated as of

                                 March 24, 2000

                                 by and between

                           GCT PACIFIC HOLDINGS, LTD.,

                               SCS (BERMUDA) LTD.,

                         MARUBENI PACIFIC CABLE LIMITED

                                       and

                              PACIFIC CROSSING LTD.

               Pacific Crossing Fiber-Optic Submarine Cable System
<PAGE>   2
                                TABLE OF CONTENTS

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ARTICLE I - DEFINITIONS ................................................................        2
         Section 1.1       Definitions .................................................        2
         Section 1.2       Other Definitional Provisions ...............................        9

ARTICLE II - ORGANIZATION AND CAPITALIZATION ...........................................       10
         Section 2.1       Formation of the Company ....................................       10
         Section 2.2       Name ........................................................       10
         Section 2.3       Purpose .....................................................       10
         Section 2.4       Principal Place of Business; Registered Office ..............       10
         Section 2.5       Share Capital ...............................................       10
         Section 2.6       Share Register ..............................................       10
         Section 2.7       Budgeted Capital Contributions ..............................       11
         Section 2.8       New Capital .................................................       11
         Section 2.9       Use of Capital ..............................................       13
         Section 2.10      Distribution Policy .........................................       13

ARTICLE III - MANAGEMENT AND ADMINISTRATION ............................................       13
         Section 3.1       Board of Directors of the Company ...........................       13
         Section 3.2       Requirements for Board Action ...............................       15
         Section 3.3       Officers ....................................................       17
         Section 3.4       Shareholders' Meetings ......................................       18
         Section 3.5       Accounting, Record Keeping and Reporting ....................       20
         Section 3.7       Budgets .....................................................       21
         Section 3.8       Deposits and Withdrawals of Funds ...........................       21

ARTICLE IV - CERTAIN BUSINESS ARRANGEMENTS .............................................       21
         Section 4.1       Contracts for Services with Affiliates ......................       21

ARTICLE V - TAX MATTERS ................................................................       22
         Section 5.1       Tax Matters .................................................       22
         Section 5.2       Partnership Election ........................................       22
         Section 5.3       Capital Accounts; Book Allocations ..........................       22
         Section 5.4       Tax Allocations .............................................       23
         Section 5.5       Income Tax Information ......................................       23

ARTICLE VI

         [Intentionally omitted.] ......................................................       23

ARTICLE VII - TRANSFER AND ASSIGNMENT ..................................................       23
         Section 7.1       Transfer of Securities ......................................       23
         Section 7.2       Right of First Refusal ......................................       24
</TABLE>
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         Section 7.3       Tag-Along Rights ............................................       26
         Section 7.4       Drag-Along Rights ...........................................       28
         Section 7.5       Involuntary Transfers .......................................       29
         Section 7.6       Liability of Transferor .....................................       29
         Section 7.7       Prohibited Transfers ........................................       30
         Section 7.8       Expenses in Connection with Transfers .......................       30
         Section 7.9       Exit Rights of SCS ..........................................       30

ARTICLE VIII - REPRESENTATIONS, WARRANTIES AND COVENANTS ...............................       30
         Section 8.1       Representations and Warranties ..............................       30
         Section 8.2       Covenants ...................................................       31

ARTICLE IX .............................................................................       32

ARTICLE X - CONFIDENTIALITY ............................................................       32
         Section 10.1      Confidentiality .............................................       32

ARTICLE XI - DEFAULTS AND REMEDIES .....................................................       33
         Section 11.1      Defaults ....................................................       33
         Section 11.2      Actions Upon Default ........................................       33
         Section 11.3      Option of Non-Defaulting Shareholders to Purchase Shares ....       34
         Section 11.4      Other Remedies ..............................................       35

ARTICLE XII - DEADLOCK .................................................................       35
         Section 12.1      Deadlock ....................................................       35

ARTICLE XIII - TERMINATION AND DISSOLUTION .............................................       36
         Section 13.1      Termination .................................................       36
         Section 13.2      Winding-up ..................................................       36

ARTICLE XIV - MISCELLANEOUS ............................................................       37
         Section 14.1      After-Acquired Shares .......................................       37
         Section 14.2      Rights of Transferees; Requirement to Become a Party ........       37
         Section 14.3      Owner of Shares .............................................       37
         Section 14.4      Effect of Ceasing to Own an Interest in the Company .........       37
         Section 14.5      Conflict of Terms ...........................................       37
         Section 14.6      Legend ......................................................       37
         Section 14.7      Notices .....................................................       38
         Section 14.8      Applicable Law; Forum Selection .............................       38
         Section 14.9      Arbitration .................................................       38
         Section 14.10     Amendment ...................................................       39
         Section 14.11     Assignment ..................................................       39
         Section 14.12     Expenses ....................................................       39
         Section 14.13     Specific Enforcement ........................................       39
         Section 14.14     Headings ....................................................       39
</TABLE>

                                     - ii -
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         Section 14.15     Entire Agreement ............................................       39
         Section 14.16     Waivers .....................................................       39
         Section 14.17     Severability ................................................       39
         Section 14.18     No Third Party Beneficiaries ................................       40
         Section 14.19     Public Statements ...........................................       40
         Section 14.20     $ ...........................................................       40
         Section 14.21     Execution in Counterparts ...................................       40
</TABLE>

                                     - iii -
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         Schedule 1:       Subscription of Shares; Percentage Share
         Schedule 2:       Capital Commitments
         Schedule 3:       Addresses for Notices

         Exhibit A:        Bye-Laws and Memorandum of Association

                                     - iv -
<PAGE>   6
                           SECOND AMENDED AND RESTATED
                             SHAREHOLDERS AGREEMENT

                  THIS SECOND AMENDED AND RESTATED SHAREHOLDERS AGREEMENT,
dated as of March 24, 2000 (as amended, supplemented or otherwise modified from
time to time, this "Agreement"), by and among (i) GCT PACIFIC HOLDINGS, LTD., a
company organized under the laws of Bermuda ("GCT"), (ii) SCS (BERMUDA) LTD., a
company organized under the laws of Bermuda ("SCS"), (iii) MARUBENI PACIFIC
CABLE LIMITED, a company organized under the laws of Bermuda ("Marubeni") and
(iv) PACIFIC CROSSING LTD., a company organized under the laws of Bermuda (the
"Company") amends, restates and supersedes in its entirety that certain Amended
and Restated Shareholders Agreement, dated as of July 8, 1998, by and among the
Company, GCT, SCS and Marubeni (the "First Amended and Restated Shareholders
Agreement").

                              W I T N E S S E T H:

                  WHEREAS, in connection with the establishment of the Company
and the parties' desire to plan and develop together the ownership and operation
of a subsea fiber optic ring cable system to be named "Pacific Crossing" or
"PC-1" connecting Japan and the United States (the "System"), the Company, GCT,
SCS, Marubeni and Marubeni Corporation, a corporation organized under the laws
of Japan, entered into that certain shareholders agreement, dated as of April 9,
1998 (the "Original Shareholders Agreement"), in order to set forth certain
understandings regarding the shareholders' relationship with the Company and
each other;

                  WHEREAS, the parties to the Original Shareholders Agreement
desired to amend various provisions of the Original Shareholders Agreement and,
as a result, the Company, GCT, SCS and Marubeni entered into the First Amended
and Restated Shareholders Agreement which amended, restated and superseded in
its entirety the Original Shareholders Agreement;

                  WHEREAS, the parties to the First Amended and Restated
Shareholders Agreement desire to amend various provisions of the First Amended
and Restated Shareholders Agreement and, as a result, desire to enter into this
Agreement;

                  WHEREAS, GCT is a subsidiary of Asia Global Crossing Holdings
Ltd., which in turn is a subsidiary of Global Crossing Ltd.; and

                  WHEREAS, GCT recently purchased the minority interests in SCS
and, as a result, SCS is wholly-owned by GCT;

                  NOW, THEREFORE, in consideration of the foregoing premises and
the mutual covenants and agreements hereinafter set forth, which the parties
hereto agree is good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto, intending to be legally bound,
do hereby agree that the First Amended and Restated Shareholders Agreement is
hereby amended and restated and superseded in its entirety as follows:
<PAGE>   7
                                                                               2

                             ARTICLE I - DEFINITIONS

                  Section 1.1  Definitions.  As used herein, the following terms
shall have the following meanings:

                  "Additional Shares" shall have the meaning set forth in
         Section 7.3(d).

                  "Affiliate" shall mean, with respect to any Person, any other
         Person which directly or indirectly through one or more intermediaries
         controls, is controlled by or is under common control with, such
         Person; provided that the Company shall not be treated as an Affiliate
         of any wholly-owned Subsidiary of the Company. For purposes of this
         Agreement, the term "control" (and the derivative terms "controlling"
         and "controlled") shall mean the possession, directly or indirectly, of
         the power to direct or cause the direction of the management and
         policies of a Person, whether through the ownership of voting
         securities, by contract or otherwise.

                  "Agreement" shall mean this Second Amended and Restated
         Shareholders Agreement, as amended, supplemented or otherwise modified
         from time to time in accordance with the terms hereof.

                  "Alternative Offer" shall have the meaning set forth in
         Section 13.2(b).

                  "Auction Bank" shall have the meaning set forth in Section
         13.2(b).

                  "Board of Directors" shall have the meaning set forth in
         Section 3.1.

                  "Budgeted Capital Contribution" shall have the meaning set
         forth in Section 2.7.

                  "Business Day" shall mean any day other than a Saturday,
         Sunday or a day on which banking institutions in Bermuda or the State
         of New York are authorized or obligated by law or executive order to
         close.

                  "Capacity" shall mean telecommunications capacity on the
         System.

                   "Capacity Purchase Agreement" shall mean an agreement
         providing for the sale, lease or other disposition of Capacity.

                  "Capital Account" shall have the meaning set forth in Section
         5.3.

                  "Capital Call Date" shall mean each Business Day on which the
         Shareholders are requested by the Company to make a Budgeted Capital
         Contribution to the Company, which Business Day (a) shall be specified
         by the Company in a Capital Call Notice delivered by the Company to
         each of the Shareholders and (b) shall be no less than 15 days from the
         date of delivery of such Capital Call Notice by the Company.
<PAGE>   8
                                                                               3

                  "Capital Call Notice" shall mean a written notice requesting
         that Capital Contributions be made by the Shareholders to the Company,
         which notice shall (a) be delivered by the Company to each Shareholder,
         (b) call for contributions to the Company by the Shareholders of all or
         a portion of their Budgeted Capital Contributions, (c) specify the
         Capital Call Date on which such Capital Contributions are to be made
         and (d) specify the account of the Company to which the Capital
         Contributions should be made available, all in accordance with Section
         2.7.

                  "Capital Commitment" shall have the meaning set forth in
         Section 2.7.

                  "Capital Contribution" shall mean, with respect to any
         Shareholder, any contribution by such Shareholder to the Company in
         accordance with the terms of Section 2.7 or Section 2.8.

                  "Capital Expenditure" shall mean for any period, with respect
         to the Company, any expenditure (other than any expenditure made
         pursuant to the Supply Contract) by the Company or any subsidiary
         thereof for the acquisition or leasing (pursuant to a capital lease) of
         fixed or capital assets or additions to equipment (including
         replacements, capitalized repairs and improvements during such period)
         which should be capitalized under US GAAP on a consolidated balance
         sheet of the Company and any subsidiaries thereof.

                  "Carrier" shall mean any telecommunications common carrier or
         any Affiliate thereof.

                  "Chairman of the Board" shall have the meaning set forth in
         Section 3.1.

                  "Code" shall mean the United States Internal Revenue Code of
         1986, as amended from time to time.

                  "Common Shares" means common shares of the Company.

                  "Company Business" shall have the meaning set forth in Section
         2.3.

                  "Company Election Notice" shall have the meaning set forth in
         Section 7.2(a).

                  "Company Sale" shall have the meaning set forth in Section
         13.2(a).

                  "Confidential Information" shall have the meaning set forth in
         Section 10.1.

                  "Construction Budget" shall mean the construction budget
         setting forth all costs related to the design, development,
         engineering, financing, acquisition, landing, completion, construction,
         installation, testing and start-up of the System, as amended,
         supplemented or otherwise modified from time to time in accordance with
         the terms hereof.

                  "Construction Completion Date" shall mean the date on which
         the construction of the System has been completed in accordance with
         the terms of the Supply Contract and the System has become operational
         and ready for commercial service.
<PAGE>   9
                                                                               4

                  "Construction Costs" shall mean all costs related to the
         design, development, engineering, financing, acquisition, installation,
         construction, landing, completion, testing and start-up of the System
         set forth in the Construction Budget.

                  "Construction Financing" shall mean all third party financing
         incurred by the Company or any of its subsidiaries to pay Construction
         Costs, including all commercial bank financing, vendor financing and
         issuances of debt and equity securities by the Company or any
         subsidiary of the Company for such purpose, including any refinancing
         thereof, but excluding the Capital Contributions.

                  "Default Notice" shall have the meaning set forth in Section
         11.1.

                  "Defaulting Shareholder" shall mean, as of any date of
         determination, any Shareholder as to which an Event of Default shall
         have occurred and be continuing.

                  "Deputy Chairman" shall have the meaning set forth in Section
         3.1.

                  "Director" shall mean any Person duly elected to the Board of
         Directors pursuant to Section 3.1.

                  "Director Designee" shall have the meaning set forth in
         Section 3.1.

                  "Dollars" and "$" shall mean the lawful currency of the United
         States of America.

                  "Drag-Along Notice" shall have the meaning set forth in
         Section 7.4(b).

                  "Drag-Along Notice Date" shall have the meaning set forth in
         Section 7.4(b).

                  "Drag-Along Sale" shall have the meaning set forth in Section
         7.4(a).

                  "Drag-Along Sale Date" shall have the meaning set forth in
         Section 7.4(b).

                  "Event of Default" shall have the meaning set forth in Section
         11.1.

                  "Exit Notice" shall have the meaning set forth in Section
         7.9(d).

                  "Exit Shares" shall have the meaning set forth in Section
         7.9(d).

                  "Failed Shareholder Meeting" shall have the meaning set forth
         in Section 3.4(d).

                  "Financial Services Agreement" shall mean the Financial
         Services Agreement, dated as of May 6, 1998, between Global Crossing
         Development Co. and the Company, as the same may be amended,
         supplemented or otherwise modified from time to time in accordance with
         the terms hereof.

                  "Fiscal Quarter" shall mean each fiscal quarter comprising a
         portion of any Fiscal Year.
<PAGE>   10
                                                                               5

                  "Fiscal Year" shall mean the accounting year of the Company
         commencing each year on January 1 and ending on the following December
         31, or such other accounting year as the Company may from time to time
         adopt. The Fiscal Year may differ from the Company's taxable year.

                  "Fully Subscribed Shareholder" shall have the meaning set
         forth in Section 2.8(e).

                  "Further Capital Notice" shall have the meaning set forth in
         Section 2.8(e).

                  "Independent Accountants" shall mean Arthur Andersen or such
         other accounting firm as may be selected by the Board of Directors.

                  "Initial Configuration" shall mean the configuration of the
         System contemplated pursuant to the Supply Agreement, prior to any
         amendment or supplement thereto.

                  "Initiating Shareholders" shall have the meaning set forth in
         Section 7.4(a).

                  "Intercompany Agreement" shall mean any agreement executed by
         the Company or a Subsidiary of the Company (i) to which a Shareholder,
         any Affiliate thereof or any Related Party thereto is also a party or
         (ii) in which a Shareholder, any Affiliate thereof or any Related Party
         thereto has a substantial financial interest.

                  "Interest or Percentage Interest" shall mean, with respect to
         each Shareholder, its percentage interest in the Company, initially as
         set forth next to its name on Schedule 1, so long as each Shareholder
         pays its Subscription Price, makes its Budgeted Capital Contributions
         in accordance with Section 2.7 and makes its pro rata portion of any
         contributions of New Capital in the form of additional equity in
         accordance with Section 2.8, and as such initial Percentage Interest
         shall be adjusted to reflect the fact that any such Shareholder fails
         to make any Budgeted Capital Contribution or its pro rata portions of
         any such New Capital or makes a Budgeted Capital Contribution or New
         Capital call on behalf of a Defaulting Shareholder in accordance with
         the terms hereof; to the extent there are new Shareholders, then, with
         respect to any Shareholder, it shall mean the percentage that results
         from dividing the total value of such individual Shareholder's capital
         and other contributions by the aggregate value of all the Shareholders'
         capital and other contributions, as agreed between the Shareholders.

                  "Involuntary Transfer Notice" shall have the meaning set forth
         in Section 7.5.

                  "Marketing Agreement" shall mean the Marketing Agreement,
         dated as of May 6, 1998, between Global Crossing International Ltd. and
         the Company, as the same may be amended, supplemented or otherwise
         modified from time to time in accordance with the terms hereof and of
         the Construction Financing.

                  "New Capital" shall have the meaning set forth in Section
         2.8(a).

                  "New Capital Notice" shall have the meaning set forth in
         Section 2.8(c).
<PAGE>   11
                                                                               6

                  "Notice" shall have the meaning set forth in Section 7.2(a).

                  "Notice Date" shall have the meaning set forth in Section
         7.3(c).

                  "OA&M Agreements" shall mean the collective reference to (a)
         the Operations, Administration and Maintenance Agreement, dated as of
         August 20, 1999 between Global Crossing Network Center Ltd. and the
         Company, and (b) the Operations and Maintenance Agreement, dated as of
         August 20, 1999, between Global Access Limited and the Company, as each
         may be amended, supplemented or otherwise modified from time to time in
         accordance with the terms hereof and of the Construction Financing.

                  "Offeree" shall have the meaning set forth in Section 7.2(a).

                  "Offeree Election Notice" shall have the meaning set forth in
         Section 7.2(b).

                  "Offeree Election Number" shall have the meaning set forth in
         Section 7.2(b).

                  "Offered Shares" shall have the meaning set forth in Section
         7.2(a).

                  "Offeror" shall have the meaning set forth in Section 7.2(a).

                  "Officers" shall have the meaning set forth in Section 3.3(a).

                  "Operating Budget" shall mean, for each Operating Year, the
         operating budget setting forth all operating costs of the Company for
         such Operating Year and adopted pursuant to the procedures described in
         Section 3.7, as such operating budget may be amended, supplemented or
         otherwise modified from time to time in accordance with the terms
         hereof.

                  "Operating Year" shall mean (a) initially, the period
         beginning on the initial date of commercial operation of the System and
         ending on the next December 31 and (b) thereafter, each ensuing
         calendar year.

                  "Other Holders" shall have the meaning set forth in Section
         7.3(a).

                  "Partnership Election" shall have the meaning set forth in
         Section 5.2.

                  "Permitted Transferee" shall have the meaning set forth in
         Section 7.1(b).

                  "Person" shall mean any individual, partnership, joint
         venture, corporation, limited liability company, limited duration
         company, limited life company, association, trust or other enterprise
         or a government, including any agency thereof.

                  "Principal Executive Officer" shall mean the President, the
         Chief Financial Officer and each Senior Vice President (or the
         equivalent thereof).

                  "Pro Rata Share" shall have the meaning set forth in Section
         7.2(b).
<PAGE>   12
                                                                               7

                  "Purchase Notice" shall have the meaning set forth in Section
         7.2(b).

                  "Purchase Price" shall have the meaning set forth in Section
         7.9(d).

                  "Recalled Shareholder Meeting" shall have the meaning set
         forth in Section 3.4(d).

                  "Register" shall have the meaning set forth in Section 2.6(a).

                  "Related Party" means, with respect to any Shareholder (a) any
         Affiliate of such Shareholder, (b) any Person in which such Shareholder
         or Affiliate of such Shareholder has a substantial economic interest,
         (c) any Person having a substantial economic interest in any such
         Affiliate or (d) any Person in which a Person specified in clause (a),
         (b) or (c) above has substantial economic interest.

                  "Sale Notice" shall have the meaning set forth in Section
         7.3(c).

                  "Selling Shareholder" shall have the meaning set forth in
         Section 7.3(a).

                  "Share Capital" shall have the meaning set forth in Section
         2.5.

                  "Share Percentage" shall mean, at any time with respect to any
         Shareholder, the percentage which the number of Common Shares owned by
         such Shareholder then constitutes of the aggregate number of Common
         Shares then outstanding.

                  "Shareholder" shall mean each of GCT, SCS and Marubeni and
         each other Person, if any, that hereafter becomes a party to this
         Agreement; a Shareholder that transfers all of its Shares in the
         Company in accordance with the provisions of this Agreement shall cease
         to be a Shareholder. The initial Shareholders will be GCT, SCS and
         Marubeni.

                  "Shareholder Loans" shall have the meaning set forth in
         Section 2.8(a).

                  "Shareholders' Allotment" shall have the meaning set forth in
         Section 7.3.(a).

                  "Shareholders' Shares" shall have the meaning set forth in
         Section 7.3.(a).

                  "Shares" shall mean (a) the shares representing the common
         shares of the Company, (b) any security or other instrument (i)
         received as a dividend on, or other payment made to holders of, such
         shares (or any security or other instrument referred to in this
         definition) or (ii) issued in connection with a split of such shares
         (or any security or other instrument referred to in this definition) or
         as a result of any exchange or reclassification of such shares (or any
         security or other instrument referred to in this definition),
         reorganization, recapitalization, consolidation or merger, (c) any
         option, warrant or right to acquire such shares (or any security or
         other instrument referred to in this definition) and (d) any security
         or other instrument exchangeable for, or convertible into, such shares
         (or any security or other instrument referred to in this definition).
<PAGE>   13
                                                                               8

                  "Special Purpose Shareholder" shall have the meaning set forth
         in Section 7.2(f).

                  "Subscription Notice" shall have the meaning set forth in
         Section 2.8(d).

                  "Subscription Price" shall mean, with respect to the Shares
         subscribed by each initial Shareholder, the amount paid by such initial
         Shareholder for such Shares as set forth on Schedule 1 hereto under the
         heading "Total Purchase Price."

                  "Subsidiary" shall mean, as to any person, (a) any corporation
         more than 50% of whose stock of any class or classes having by terms
         thereof ordinary voting power to elect a majority of the directors of
         such corporation (irrespective of whether or not at the time stock of
         any class or classes of such corporation shall have or might have
         voting power by reason of the happening of any contingency) is at the
         time owned by such person and/or one or more Subsidiaries of such
         person and (b) any partnership, association, joint venture or other
         entity in which such person and/or one or more Subsidiaries of such
         person have more than a 50% equity interest therein.

                  "Supermajority Board Approval" shall have the meaning set
         forth in Section 3.2(b).

                  "Supermajority Shareholder Approval" shall have the meaning
         set forth in Section 3.4(f).

                  "Supply Contract" shall mean the Project Development and
         Construction Contract, dated as of April 21, 1998, between Tyco
         Submarine Systems Ltd. and the Company, as the same may be amended,
         supplemented, amended and restated or otherwise modified from time to
         time in accordance with the terms hereof and of the Construction
         Financing.

                  "System" shall having the meaning ascribed to such term in the
         recitals of this Agreement.

                  "System Contracts" shall mean the Supply Contract, the
         Marketing Agreement, the OA&M Agreements and each other material
         contract relating to the construction, operation or maintenance of the
         System, but excluding Capacity Purchase Agreements.

                  "System Reconfiguration" shall have the meaning assigned
         thereto in Section 3.2(b).

                  "Tag-Along Notice" shall have the meaning set forth in Section
         7.3(d).

                  "Tag-Along Sale" shall have the meaning set forth in Section
         7.3(a).

                  "Tag-Along Sale Date" shall have the meaning set forth in
         Section 7.3(c).

                  "Termination Event" shall have the meaning set forth in
         Section 13.1.

                  "Termination Notice" shall have the meaning set forth in
         Section 11.2(c).

                  "Third Party" shall have the meaning set forth in Section
         7.4(a).
<PAGE>   14
                                                                               9

                  "Third Party Proposal" shall have the meaning set forth in
         Section 7.4(f).

                  "Transfer" shall have the meaning set forth in Section 7.1(a).

                  "Transaction Documents" shall mean, collectively, this
         Agreement, the System Contracts, the Financial Services Agreement, each
         agreement relating to the Construction Financing and each other
         agreement entered into by any Person which the Shareholders agree shall
         be a Transaction Document.

                  "US GAAP" shall mean generally accepted accounting principles
         in the United States of America in effect from time to time.

                  Section 1.2  Other Definitional Provisions. (a) Unless
otherwise specified therein, all terms defined in this Agreement shall have the
defined meanings when used in any other document made or delivered pursuant
hereto.

                  (b) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Article,
Section, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

                  (c) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                  (d) Except as otherwise specified herein, each reference in
this Agreement to a Transaction Document shall be deemed (i) to include all
exhibits, annexes, schedules or other attachments thereto and (ii) to refer to
such Transaction Document as the same may be amended, supplemented or otherwise
modified from time to time in accordance with its terms and the terms of this
Agreement.

                  (e) Each reference in this Agreement to a Person shall be
deemed to include such Person's permitted successors and assigns.

                  (f) The use of the word "including" in this Agreement means
"including, without limitation".

                  ARTICLE II - ORGANIZATION AND CAPITALIZATION

                  Section 2.1  Formation of the Company. Subject to the terms
and conditions hereof, the Shareholders have established the Company as an
exempted company limited under the laws of Bermuda. The Shareholders have taken,
or have caused to be taken, all such actions as may be required under the laws
of Bermuda in connection with the formation of the Company on the terms and
conditions set forth herein and the Shareholders agree to take, or cause to be
taken, all such actions as may be required under the laws of Bermuda in
connection with the continuation of the Company on the terms and conditions set
forth herein. The Company shall have an unlimited duration.

<PAGE>   15
                                                                              10

                  Section 2.2  Name.  The name of the Company shall be "Pacific
Crossing Ltd."

                  Section 2.3  Purpose. The Company's business shall be the
development, financing, construction, installation, operation, maintenance,
ownership of, and the sale, lease or other disposition of capacity on the
System, and all business related or reasonably incidental thereto, and the
Company may take any and all actions necessary, appropriate or consistent
therewith (collectively, the "Company Business"). The Company shall not engage
in any business other than the Company Business unless the Shareholders, by
unanimous written consent, grant their approval to engage in such other
business.

                  Section 2.4  Principal Place of Business; Registered Office.
The Company shall maintain its office and principal place of business at, and
its business shall be conducted from, Wessex House, 45 Reid Street, Hamilton
HM12, Bermuda. The address of the Company's registered office in Bermuda shall
be Cedar House, 41 Cedar Avenue, Hamilton HM12, Bermuda. The Company's principal
place of business and registered office may be changed at any time by a vote of
the Board of Directors in accordance with Section 3.2(a).

                  Section 2.5  Share Capital. The authorized share capital of
the Company shall be $12,000 (the "Share Capital") and shall consist of
1,200,000 common shares having a par value of $.01 per share. In consideration
of each Shareholder paying the Subscription Price, the Company has issued to
each Shareholder the number of Common Shares set forth opposite such
Shareholder's name on Schedule 1 hereto. All Common Shares shall be identical
and shall entitle the holders thereof to the same rights and privileges. The
Shareholders shall have no personal liability for the debts or liabilities of
the Company beyond the amount, if any, of the Subscription Price unpaid by them
and shall not be required to contribute to the assets of the Company on a
winding up of the business of the Company.

                  Section 2.6  Share Register. (a) All Common Shares will be
issued in registered form only. All issued Common Shares shall be registered in
the Register of Shareholders (the "Register"), which shall be kept by the
President or by one or more persons designated for such purpose by the President
and the Register shall contain the name of each Shareholder, its address
including its country of residence or elected domicile, the number of Shares
held by it, the amount paid or agreed to be considered as paid on the Common
Shares, the date on which each Shareholder was entered into the Register and the
date at which any Shareholder ceased to be a member for one year after such
Shareholder was entered into the Register.

                  (b) Transfer of Shares shall be made in accordance with the
terms of this Agreement and the Bye-Laws of the Company, and shall be effected
by written instrument of transfer to be inscribed in the Register, such
instrument to be dated and signed by the transferor and the transferee or by
persons holding suitable powers of attorney to act therefor. The Board of
Directors shall accept and enter into the Register any Transfer effected in
accordance with the terms of this Agreement and the Bye-Laws of the Company and
pursuant to an agreement or agreements between the transferor and the
transferee, true and complete copies of which shall have been delivered to the
Company.

                  (c) Every Shareholder must provide the President with an
address to which all notices and announcements from the Company, the Board of
Directors or other Shareholders may be sent. Such address will also be entered
in the Register. Any Shareholder may, at any time, change its address as entered
in the Register by means of a written notification to the Company at its
registered office and,

<PAGE>   16
                                                                              11

for so long as the registered office and principal place of business are not the
same address, also by written notification to the principal place of business or
to such other address as may be set by the President from time to time.

                  Section 2.7  Budgeted Capital Contributions. (a) Each
Shareholder agrees to make budgeted capital contributions in cash from time to
time ("Budgeted Capital Contributions") to the Company in an aggregate amount
not to exceed the amount set forth opposite its name on Schedule 2 hereto (as to
each Shareholder, its "Capital Commitment"). At any time and from time to time
after the date hereof, on any Capital Call Date, each Shareholder shall
contribute to the Company such portion of its unfunded Capital Commitment as
shall be specified by the Company in the Capital Call Notice delivered with
respect to such Capital Call Date; provided, however, that in no event shall any
Shareholder be required to make capital contributions in excess of its Capital
Commitment.

                  (b) In delivering a Capital Call Notice, the Company (i) will
call for Budgeted Capital Contributions from all Shareholders simultaneously and
pro rata in accordance with each Shareholder's Share Percentage and (ii) will
call only for such Budgeted Capital Contributions as are set forth in the
Construction Budget.

                  (c) Budgeted Capital Contributions by the Shareholders shall
be made in Dollars, by wire transfer of immediately available funds to the
account of the Company specified in the relevant Capital Call Notice. No
Shareholder shall be entitled to any interest or compensation by reason of its
Budgeted Capital Contributions or by reason of serving as a Shareholder. No
Shareholder shall be required to lend any funds to the Company. Each Shareholder
agrees to provide guarantees or other credit support for its unfunded Capital
Commitment to the extent required pursuant to the Construction Financing.

                  Section 2.8  New Capital. (a) In the event that the Company
from time to time requires capital in addition to the aggregate Capital
Commitments and the Board of Directors approves pursuant to Section 3.2(b) the
raising of additional capital ("New Capital") by the Company, each Shareholder
shall have the preferential right to subscribe to such New Capital in proportion
to its Share Percentage as of the date of the notice described in Section
2.8(c). All New Capital shall be in the form of loans to the Company
("Shareholder Loans"), unless the Board of Directors approves the issuance of
New Capital in a form other than debt. Shareholder Loans may be made directly by
a Shareholder or by an Affiliate of a Shareholder. No Shareholder shall
transfer, or allow any Affiliate of such Shareholder to transfer, any
Shareholder Loan except (i) to an Affiliate of such Shareholder or (ii)
concurrently with, in proportion to, and to the same party as, a Transfer of any
Shares by such Shareholder in accordance with Section 7.1. Each Shareholder
shall transfer, and shall cause any Affiliate of such Shareholder to transfer,
any Shareholder Loan concurrently with, in proportion to, and to the same party
as, a Transfer of any Shares by such Shareholder in accordance with Section 7.1.
If an Affiliate of a Shareholder shall cease to be an Affiliate of such
Shareholder, then, prior to such time, such Shareholder shall cause such
Affiliate to transfer any Shareholder Loans held by it to such Shareholder.

                  (b) The Shareholders acknowledge and agree that upon the
written request of any Shareholder, the Board of Directors shall promptly
determine whether or not to approve the issuance of New Capital and the terms of
such New Capital.

<PAGE>   17
                                                                              12

                  (c) Promptly following a decision of the Board of Directors to
issue New Capital, the Company shall provide to each Shareholder a written
notice (a "New Capital Notice") specifying the total amount of the New Capital
proposed to be issued and the amount and terms of such New Capital for which
each Shareholder is entitled to subscribe.

                  (d) For a period of sixty (60) days following the date of the
New Capital Notice, each Shareholder may elect by written notice to the Company
(a "Subscription Notice") to subscribe for all or any portion of that amount of
New Capital for which the Shareholder is entitled to subscribe as set forth in
the New Capital Notice.

                  (e) At the end of such sixty (60) day period, (i) the Company
shall give to each Shareholder written notice of which Shareholders have
subscribed for New Capital and the amount of such New Capital for which each
such Shareholder has subscribed and (ii) in the event that any Shareholder does
not subscribe for the full amount of New Capital for which such Shareholder is
entitled to subscribe, the Company shall give to each Shareholder that had
subscribed for the full amount of New Capital for which it was entitled to
subscribe (a "Fully Subscribed Shareholder") written notice (a "Further Capital
Notice") specifying the amount of such unsubscribed New Capital. For a period of
fifteen (15) days from the date of any Further Capital Notice, each Fully
Subscribed Shareholder may elect, by giving a Further Subscription Notice to the
Company, to subscribe for additional unsubscribed New Capital, which shall be
allocated in the following order of priority: first, ratably to the Fully
Subscribed Shareholders in accordance with each Fully Subscribed Shareholder's
Share Percentage, to the extent the Fully Subscribed Shareholders have elected
to do so and second, if any Fully Subscribed Shareholders have subscribed for
more unsubscribed New Capital than has been allocated pursuant to the clause
first above, ratably to such Fully Subscribed Shareholders in accordance with
the unfulfilled subscriptions of such Fully Subscribed Shareholders.

                  (f) Each Subscription Notice shall constitute a binding
commitment of the Shareholder giving the same to purchase from the Company the
amount of New Capital set forth therein, at the price, by the date and on the
terms and conditions set forth in the Capital Notice, and shall be enforceable
by the Company against the subscribing Shareholder.

                  (g) Any New Capital in the form of debt shall have priority of
repayment of all principal and interest over any distribution of profits or any
distribution in return of capital by the Company to the Shareholders.

                  (h) The Company may issue any New Capital not subscribed for
by the Shareholders pursuant to this Section 2.8 to any other Person; provided
that such issuance shall have first been approved by the Board of Directors as
required by Section 3.2(b).

                  (i) Promptly following receipt by the Company of the New
Capital, the Company shall, and the Shareholders agree to take all actions
necessary to cause the Company to, execute all certificates, instruments,
amendments and other documents and take such other actions as are necessary or
desirable to effect the foregoing contribution to capital.

                  (j) In the event the New Capital is in the form of additional
equity, the number of Shares

<PAGE>   18
                                                                              13

to be issued in connection with such New Capital shall be determined by the
Board of Directors at the time of the approval by the Board of Directors of a
decision to issue New Capital in a form other than debt.

                  Section 2.9  Use of Capital. Capital will be used for purposes
as the Board of Directors shall determine (consistent with the Construction
Budget (if applicable) and the then current Operating Budget), including for the
payment of Construction Costs.

                  Section 2.10 Distribution Policy. The Board of Directors shall
cause the Company to, at least semi-annually after the date of commercial
operation of the System, make a dividend to the Shareholders of 100% of the
amount of funds of the Company, which, in the reasonable determination of the
Board of Directors of the Company (which such determination shall be consistent
with the Operating Budgets of the Company and the Construction Financing
agreements and shall take into account amounts which are to be reserved for the
upgrade of the System pursuant to the Supply Contract), is available for the
payment of dividends or distributions, unless the holders of at least 75% of the
Common Shares agree in writing to a lesser amount (in which case such lesser
amount shall be paid to the Shareholders).

                   ARTICLE III - MANAGEMENT AND ADMINISTRATION

                   Section 3.1 Board of Directors of the Company.

                  (a)(i) The Company shall be managed by a board of directors
         (the "Board of Directors") comprised of six (6) directors. Three (3) of
         the initial Directors shall be nominated by GCT, one (1) of the initial
         Directors shall be nominated by SCS and two (2) of the initial
         Directors shall be nominated by Marubeni. In the event the respective
         Share Percentage of the Shareholders change, including as a result of
         the provisions of Section 2.8(j) or 11.2(b), or of the admission of
         additional Shareholders as Shareholders of the Company, representation
         on the Board of Directors (and, if necessary, the size of the Board of
         Directors) shall be appropriately adjusted so that the Shareholders
         shall have representation on the Board of Directors approximately
         proportional to their respective ownership of outstanding Common
         Shares. Directors nominated by a Shareholder shall be referred to as
         such Shareholder's "Director Designees".

                  (ii) Each of the Shareholders hereby agrees to vote in favor
         of, and to cause its Director Designees to vote in favor of, the
         Director Designees of each other Shareholder for positions on the Board
         of Directors. The Director Designees of GCT shall initially be: S.
         Wallace Dawson, Jr., Darryl Green and John Scanlon. The Director
         Designee of SCS shall initially be: David Milroy. The Director
         Designees of Marubeni shall initially be: Fumio Uehara and Osamu Okubo.
         Each Shareholder agrees not to take, and shall cause its Director
         Designees not to take, any action to remove a Director Designee other
         than in accordance with the following sentence (or in accordance with
         Section 3.1(a)(i) as a result of a change in the respective Share
         Percentage). As soon as practicable after receipt of a written request
         from a Shareholder to remove a Director Designee of such Shareholder,
         the other Shareholders agree to take, or cause to be taken by their
         Director Designees, all appropriate action to effect the removal of
         such

<PAGE>   19
                                                                              14

         Director Designee. Upon the removal, resignation or death of a Director
         Designee, the Shareholder nominating such Director Designee shall
         designate a replacement Director Designee, and the other Shareholders
         agree to take, or cause to be taken by their respective Director
         Designees, as soon as practicable after receipt of such designation,
         all appropriate action to effect the election of such replacement
         Director Designee.

                  (iii) Each Shareholder shall vote against or withhold consent
         from any proposal to amend the Company's Memorandum of Association or
         Bye-laws, current copies of which are attached hereto as Exhibit A, to
         change the composition or character of the Board of Directors as set
         forth in this Section 3.1, except to reflect the respective
         proportionate Share Percentage and to be consistent with this
         Agreement.

                  (iv) Each Shareholder agrees to vote or give written consent,
         or to cause its Director Designees to vote or give written consent, for
         the election of the person designated by GCT as Chairman of the Board
         of Directors of the Company (the "Chairman of the Board") so long as
         GCT owns more Common Shares than any other Shareholder and has not been
         a Defaulting Shareholder. Each Shareholder agrees to vote or give
         written consent, or to cause its Director Designees to vote or give
         written consent, for the election of the person designated by Marubeni,
         as Deputy Chairman of the Board of Directors of the Company (the
         "Deputy Chairman") so long as Marubeni is the second largest
         Shareholder of the Company and has not been a Defaulting Shareholder.
         Each Shareholder agrees not to take, and shall cause its Director
         Designees not to take, any action to remove either such persons as
         Chairman of the Board or Deputy Chairman of the Board of Directors of
         the Company during such period. The Chairman of the Board shall preside
         over meetings of the Board of Directors but shall otherwise have no
         additional voting or other rights in his capacity as such, including in
         connection with any matters submitted to or voted upon by the Board of
         Directors. In the absence of the Director then serving as Chairman of
         the Board at any meeting of the Board of Directors, (A) the Chairman of
         the Board for such meeting shall be the Director serving as Deputy
         Chairman (or, in his absence, another Director nominated by the
         Shareholder which nominated the Director then serving as Chairman of
         the Board), and (B) the Board of Directors may continue to act in
         accordance with the terms of this Agreement.

                  (v) Each Director shall serve for a term of the duration set
         forth in the Bye-Laws or, if earlier, until the date of resignation or
         removal of such Director or the date upon which the Shareholder that
         nominated such Director ceases to be a Shareholder (or reduces its
         interest such that it is no longer entitled to the same number of
         Director Designees and chooses to remove such Director Designee as a
         result); provided that, in the event that a Director resigns or is
         removed prior to the end of the scheduled term of such outgoing
         Director, the initial term for any Director which replaces such
         outgoing Director on the Board of Directors shall be the remaining
         scheduled term of such outgoing Director.

                  (vi) Any Director may resign by giving notice in writing to
         the Secretary at the Registered Office. The Secretary will give written
         notice to all the Shareholders.

         Section 3.2  Requirements for Board Action. Except as provided in
Section 3.2(b) or mandatorily required by the laws of Bermuda, all actions taken
by the Board of Directors shall require
<PAGE>   20
                                                                              15

the unanimous written consent of all Directors (excluding Directors appointed by
any Defaulting Shareholder) or the approval of a majority of all Directors
present or represented and entitled to vote on such actions at a meeting which
has been duly called and at which a quorum was present at the time such vote was
taken.

                  (b) The following actions shall require the unanimous written
consent of all Directors or the approval of at least 75% of the Directors
present or represented and entitled to vote on such actions at a meeting which
has been duly called and at which a quorum was present at the time such vote was
taken ("Supermajority Board Approval"), which the Shareholders agree and
acknowledge constitute matters outside the ordinary course of the Company's
business:

                  (i) subject to the provisions of Section 7.4, the merger or
         consolidation of the Company with or into any other Person or of any
         Person other than a Subsidiary of the Company, with or into the
         Company, the sale of all or substantially all of the assets of the
         Company or any material Subsidiary, the dissolution, liquidation,
         reorganization or recapitalization of the Company or any similar
         extraordinary corporate action or transaction involving the Company;

                  (ii) the incurrence of indebtedness by the Company or any of
         its Subsidiaries in excess of $100 million in aggregate principal
         amount, other than indebtedness originally incurred pursuant to the
         Construction Financing;

                  (iii) refinancing of any indebtedness of the Company or any of
         its Subsidiaries in excess of $100 million in outstanding principal
         amount;

                  (iv) a fundamental change to the Company's business plan or
         Construction Budget, or a change in the Company's marketing plan if
         such change would result in a plan that is not a market-based, arms
         length pricing plan;

                  (v) the approval of any Operating Budget for any Operating
         Year in which the aggregate amount of costs budgeted to be incurred by
         the Company is greater by 30% or more than the aggregate amount of
         costs that were budgeted to be incurred by the Company in the Operating
         Budget for the preceding Operating Year;

                  (vi) the execution, material amendment or termination of any
         material System Contract or any other agreement or agreements involving
         more than $50,000,000 (in each case which is not an Intercompany
         Agreement or a Capacity Purchase Agreement) or the material amendment
         or material extension of the foregoing prior to the end of its stated
         term;

                  (vii) sales of assets by the Company and its Subsidiaries,
         other than in the ordinary course of business or pursuant to the
         Construction Budget or the then current Operating Budget, with a
         purchase price or fair market value in excess of $25 million per year
         in the aggregate or which are otherwise material to the business of the
         Company and its Subsidiaries;

                  (viii) the execution of any Intercompany Agreement (or the
         amendment or extension thereof) or the approval of any transaction or
         series of related transactions between the Company
<PAGE>   21
                                                                              16

         or any of its Subsidiaries and a Shareholder, Affiliate of a
         Shareholder or a Related party, other than transactions whose terms are
         expressly provided for in the Transaction Documents;

                  (ix) the making of Capital Expenditures in excess of those set
         forth in the then current Construction Budget or Operating Budget to
         the extent such Capital Expenditures are not permitted to be made under
         the Construction Financing (as amended, supplemented or otherwise
         modified from time to time);

                  (x) the issuance of any New Capital Notice or the incurrence
         of any indebtedness to any Shareholder or any Affiliate thereof or any
         Related Party thereof;

                  (xi) with respect to any Intercompany Agreement that by its
         terms allows the Company to elect to renew or terminate such agreement
         upon the occurrence of some specified event or circumstance (as would
         occur, by way of example, with an Intercompany Agreement that is
         automatically renewable after a specified period of time, unless the
         parties otherwise agree), any election by the Company to terminate or
         not renew such Intercompany Agreement and any determination of whether
         a default has occurred and whether and what actions should be taken in
         respect thereof and the exercise of any right or option shall be
         determined by a majority of the Directors nominated by the
         disinterested Shareholders;

                  (xii) the transfer of any ownership interest in any Subsidiary
         of the Company to any Person other than a wholly-owned Subsidiary of
         the Company;

                  (xiii) the undertaking of any system upgrade to enhance the
         System beyond its current design capability of 640 gbs;

                  (xiv) the adoption of or change in the Company's dividend
         policy;

                  (xv) any amendment or other modification of the Company's
         Memorandum of Association or Bye-Laws, except as required by Section
         14.5;

                  (xvi) the expansion of the System by means of a material
         geographical addition to the configuration of the System or a material
         geographical reconfiguration of the System from the Initial
         Configuration (any such event, a "System Reconfiguration"), if such
         System Reconfiguration would cost in excess of $100 million; or

                  (xvii) a fundamental change in the Company Business.

                  (c) Each Shareholder, following a preliminary vote, agrees to
cause its Director Designees to vote against or withhold its written consent
from any proposal regarding any matter listed in the preceding subsection (b)
unless the appropriate percentage of the Directors of the Company (as specified
in such subsections), pursuant to such preliminary vote, has indicated it will
vote or give written consent in favor of such proposal.
<PAGE>   22
                                                                              17

                  (d) Each Shareholder agrees to notify each other Shareholder
of any Intercompany Agreement entered into after the date hereof to which it or
any of its Affiliates or Related Parties will be party.

                  (e) Any action approved by the Board of Directors may be taken
by any authorized Director or officer of the Company on behalf of the Company
and any action so taken shall bind the Company. The Board of Directors, at its
discretion, may grant broad operating powers to any Principal Executive Officer
of the Company, including with respect to matters set forth in Section 3.2(b)
(so long as such grant is authorized pursuant to Supermajority Board Approval).
Except as otherwise provided herein, no Shareholder or Director or any other
Person shall have the authority to bind the Company.

                  Section 3.3  Officers. (a) The officers of the Company (the
"Officers") shall consist of a President, a Chief Financial Officer, and such
other officers, including Senior Vice Presidents, Vice Presidents, Treasurers,
Assistant Treasurers, Secretaries, and Assistant Secretaries as the Board of
Directors shall deem necessary from time to time. Each officer shall hold office
until such officer resigns or is removed.

                  (b) The Board of Directors shall elect all Principal Executive
Officers. Any Director may at any time call a special meeting of the Board of
Directors to vote upon the dismissal of any Principal Executive Officer if such
Director, in his or her reasonable business judgment (or the reasonable business
judgment of the Shareholder appointing such Director), believes that such
Principal Executive Officer should be dismissed. Following any such dismissal,
the succeeding Principal Executive Officer shall be elected by the Board of
Directors.

                  (c) The President shall be the primary operating officer of
the Company and shall be responsible for the general and executive management
and daily administration of the operations and business of the Company in
accordance with the terms and conditions of this Agreement, the Construction
Budget, the Operating Budget then in effect and the Memorandum of Association of
the Company, including decisions as to timing and delivery of Capital Call
Notices in accordance with Section 2.7 (but subject to Section 3.2(b)). The
President shall also carry into effect all orders and resolutions of the Board
of Directors.

                  (d) The Chief Financial Officer shall, subject to the terms
and conditions hereof, oversee and be responsible for financial matters
pertaining to the Company and its obligations under this Agreement, shall
oversee the preparation of financial statements for the Company and its related
obligations to the Shareholders and discharge such other duties as are set forth
herein or as may from time to time be delegated to the Chief Financial Officer
by the Board of Directors or the President. The Chief Financial Officer shall
present reports on the financial condition of the Company from time to time to
the President and, upon request of any Director, at the specified meeting of the
Board of Directors.

                  (e) All other officers shall have such duties as may from time
to time be delegated to them by the Board of Directors or the President.

                  (f) The Board of Directors may establish and fund a
compensation plan for the President, the Chief Financial Officer and other
officers specified by the President and approved by the
<PAGE>   23
                                                                              18

Board of Directors. Such plan shall provide for such compensation of such
officers, including any signing bonuses, base salary, incentive bonuses and
severance, as shall be determined by the Board of Directors.

                  (g) Notwithstanding anything to the contrary contained in this
Section 3.3, Marubeni's Director Designees shall have the right to appoint one
Senior Vice President of the Company. In the event that the Senior Vice
President appointed by Marubeni's Director Designees is ever removed or resigns,
Marubeni's Director Designees shall have the right to appoint a new Senior Vice
President in substitute therefor.

                  Section 3.4  Shareholders' Meetings. (a) The annual general
meeting of Shareholders shall be held, in accordance with Bermuda law, in
Bermuda at the registered office of the Company, or at such other place as may
be specified in the notice of meeting, on the first Friday in the month of June
in each year. If such day is not a Business Day in Bermuda, the annual general
meeting shall be held on the next following Business Day in Bermuda. All
meetings other than annual general meetings shall be called special general
meetings.

                  (b) Other meetings of Shareholders may be held at such times
as may be determined by vote of the Board of Directors in accordance with
Section 3.2(a) and specified in the notice of meeting for such meetings. Any
Shareholder, or Shareholders together, holding not less than one-tenth of the
Common Shares (so long as it is not a Defaulting Shareholder) may at any time
request the Board of Directors to call a special general meeting of
Shareholders. The request must state the purpose of the meeting, must be signed
by the requesting Shareholder(s) and deposited at the registered office. The
Board of Directors shall call a special general meeting of Shareholders
immediately following receipt of any such request. If the Board of Directors
fail to convene a special general meeting twenty-one days from the date of
deposit of the request, the requesting Shareholder(s) may convene a special
general meeting in accordance with Bermuda law. Each notice of meeting shall
specify the purpose or purposes of the meeting and the matters to be considered
at such meeting.

                  (c) Written notice of the place, date and time of every
meeting of Shareholders, whether annual or special, shall be given to each
Shareholder not less than 15 days nor more than 60 days prior to the date of
such meeting unless (i) such notice is waived in writing by all the Shareholders
and (ii) all Shareholders are present or represented at such meeting. At any
meeting so called, the Shareholders shall transact only such business as was
specified in the notice for such meeting and any other business which all
Shareholders determine is prudent.

                  (d) A quorum of the Shareholders (without which a vote of the
Shareholders on any matter may not be held) will consist of Shareholders holding
at least 75% of the issued and outstanding Common Shares (excluding the Common
Shares of any Shareholder which is a Defaulting Shareholder). Shareholders may
participate in a meeting of Shareholders by means of conference telephone or
similar communications equipment by means of which all persons participating in
the meeting can hear and speak to each other, and such participation in a
meeting will constitute presence in person at the meeting; provided that all
actions approved by the Shareholders at any such meeting will be reduced to
writing in the form of resolutions and will be signed by all Shareholders
participating in such meeting. Each Shareholder agrees not to avoid any meeting
for the purpose of frustrating a quorum of the Shareholders. If (i) a meeting of
the Shareholders has been called in accordance with Section 3.4(c) and a quorum
has
<PAGE>   24
                                                                              19

not been achieved (a "Failed Shareholder Meeting") and (ii) another meeting for
the purpose of transacting the same business as set forth in the notice with
respect to the Failed Shareholder Meeting (a "Recalled Shareholder Meeting") is
called in accordance with Section 3.4(c) upon at least 15 days prior written
notice to all Shareholders, then a quorum for the Recalled Shareholder Meeting
shall not require the Shareholders who failed to attend the Failed Shareholder
Meeting.

                  (e) Subject to Section 3.4(f) and any mandatory provisions of
Bermuda law, all actions which are required by such law to be taken or approved
by the Shareholders shall require the approval of Shareholders holding more than
50% of the issued and outstanding Common Shares (excluding the Common Shares of
any Defaulting Shareholder) by affirmative vote at a meeting of Shareholders
held pursuant to this Section 3.4. Shareholders may vote upon and approve the
matters described in Section 3.4(f). Actions of the Shareholders may also be
taken by the unanimous written consent of all Shareholders (other than
Defaulting Shareholders).

                  (f) The following actions shall require the approval of
Shareholders holding at least 75% (or 100% in the case of clause (ii) below) of
the outstanding Common Shares (excluding the Common Shares of any Defaulting
Shareholder) by affirmative vote at a meeting of Shareholders held pursuant to
this Section 3.4 ("Supermajority Shareholder Approval"):

                           (i) any action which results in the dilution of a
         Shareholder's Share Percentage;

                           (ii) any material change in the Company Business;

                           (iii) any issuance, purchase or redemption by the
         Company of any securities, including Shares, of the Company, or any
         change, increase or reduction in the capitalization of the Company;

                           (iv) subject to the provisions of Section 7.4, any
         merger or consolidation of the Company or any material Subsidiary with,
         or acquisition of all or substantially all of the assets or capital
         stock of the Company or any material Subsidiary by, another person or
         other business combination or any dissolution, liquidation or
         winding-up of the Company or any material Subsidiary;

                           (v) any amendment of the Memorandum of Association of
         the Company; or

                           (vi) any filing of a voluntary petition in bankruptcy
         or for reorganization or for the adoption of an arrangement or an
         admission seeking the relief therein provided under any existing or
         future law of any jurisdiction relating to bankruptcy, insolvency,
         reorganization or relief of debtors.

                  (g) Any action approved by the Shareholders may be taken by
any authorized Director or officer of the Company on behalf of the Company and
any action so taken shall bind the Company. Except as otherwise provided herein,
no Shareholder or Director or any other Person shall have the authority to bind
the Company.
<PAGE>   25
                                                                              20

                  Section 3.5  Accounting, Record Keeping and Reporting.

                  (a) The books and records of the Company shall be kept in
accordance with US GAAP, consistently applied. The Company shall keep books,
records and accounts with respect to (i) all sums of money received and expended
by the Company and the matters in respect of which the receipt and expenditure
take place, (ii) all sales and purchases of goods by the Company and (iii) the
assets and liabilities of the Company.

                  (b) The accounts of the Company shall be audited by the
Independent Accountants. The annual financial statements of the Company shall be
audited in accordance with generally accepted auditing standards in the United
States.

                  (c) The books of account of the Company shall be kept and
maintained at the principal place of business of the Company or at such other
place as the Board of Directors shall determine. If the records of account are
kept at someplace outside Bermuda, there shall be kept at an office of the
Company in Bermuda such records as will enable the Directors to ascertain with
reasonable accuracy the financial position of the Company at the end of each
three month period. Each of the Shareholders, through their respective
authorized representatives, shall have the right at such Shareholder's expense
to visit and inspect any of the operations and any of the properties and assets
of the Company, including the books of account of the Company, and to make
copies and take extracts therefrom, and to discuss its affairs, finances and
accounts with its officers and the Independent Accountants all at such
reasonable times and as often as may be reasonably requested.

                  (d) As soon as practicable following the end of each Fiscal
Year, the Company shall cause to be prepared for the Company and shall deliver
to the Shareholders and the Board of Directors not later than 90 days following
the end of such Fiscal Year a statement of the results of operations for the
Fiscal Year, a balance sheet as at the end of such Fiscal Year, a statement of
retained earnings or deficit and a statement of cash flows for such Fiscal Year,
together with all schedules and footnotes thereto and a report thereon of the
Independent Accountants.

                  (e) As soon as practicable after the end of each month and
Fiscal Quarter the Company shall cause to be prepared and the Company shall
deliver to each Shareholder not later than 30 days following the end of such
month or Fiscal Quarter, as the case may be, an operating report for the Company
for such period, which report shall detail, among other things, sales of
Capacity made in such period, expenses incurred in such period, compared to the
Construction Budget or Operating Budget then in effect, and all supporting
activities of the President and any other employees of the Company and other
operating data.

                  (f) Under the direction of the Board of Directors, the Company
shall prepare and file, or shall cause to be prepared, as applicable, all
reports prescribed by any governmental authority having jurisdiction over the
Company, or the System, as the case may be.

                  (g) In addition to the reports described above, the Company
shall furnish such other financial and supporting information to each
Shareholder and the Board of Directors in such detail and with such frequency as
the Board of Directors may reasonably require.
<PAGE>   26
                                                                              21

                  Section 3.6  Intentionally Omitted.

                  Section 3.7  Budgets. (a) The Construction Budget may be
amended by the President, subject to the approval of the Board of Directors in
accordance with Section 3.2.

                  (b) At least 60 days prior to the beginning of each Operating
Year, the Chief Financial Officer will prepare and present an annual operating
budget for such Operating Year, which upon Board approval in accordance with
Section 3.2, shall be adopted by the Company as its annual Operating Budget for
such Operating Year. Each proposed operating budget shall, among other things,
set forth an estimate of the revenues and expenditures (together with a
contingency) of the Company for such Operating Year and shall be prepared
consistent with budgets being prepared by other similar international
telecommunication companies. Except as otherwise provided in the contingency (or
with respect to emergency expenditures), no expenditure shall be incurred by or
on behalf of the Company which is not contemplated, either specifically or
generally, by the Operating Budget then in effect. Operating Budgets may be
amended by the President, subject to the approval of the Board of Directors in
accordance with Section 3.2.

                  Section 3.8 Deposits and Withdrawals of Funds. Funds of the
Company shall be deposited in such banks or other depositories as shall be
designated from time to time by the Board of Directors. All withdrawals from any
such depository shall be made only as authorized by the Shareholders or the
Board of Directors and shall be made only by check, wire transfer, debit
memorandum or other written instruction.

                   ARTICLE IV - CERTAIN BUSINESS ARRANGEMENTS

                  Section 4.1  Contracts for Services with Affiliates. The
Company or a Subsidiary of the Company may from time to time with the approval
of the Shareholders or the Board of Directors as provided in Article III enter
into one or more contracts with any Shareholder or a Shareholder's Affiliates or
Related Parties to provide services that are necessary or appropriate for the
proper functioning of the Company, including services in connection with the
construction, operation and sale of capacity of the System.

                             ARTICLE V - TAX MATTERS

                  Section 5.1  Tax Matters.

                  (a) For purposes of all dealings with taxes, the Board of
Directors shall appoint an officer (who may be the Chief Financial Officer) who
shall serve as the Company "Tax Matters" officer.

                  (b) The Tax Matters officer shall cause to be prepared the tax
returns for the Company and shall provide copies of all such tax returns to the
Shareholders for their approval, not to be unreasonably withheld or delayed,
prior to the filing of such returns but in any event no later than the date
specified by the Board of Directors.
<PAGE>   27
                                                                              22

                  (c) The Tax Matters officer shall cooperate with all
Shareholders and, for other than routine correspondence and communications,
shall promptly provide Shareholders with copies of notices or other materials
from, and inform Shareholders of discussions engaged in with, the U.S. Internal
Revenue Service or tax authorities of other jurisdictions and shall provide the
Shareholders with notice of all scheduled administrative proceedings or audits,
including meetings with agents of the Internal Revenue Service or other
authorities, technical advice conferences and appellate hearings as soon as
possible after receiving notice of the scheduling of proceedings. Each of the
Shareholders shall be entitled to participate at its own expense in any such
administrative proceedings or audits.

                  Section 5.2  Partnership Election. (a) GCT shall have the
right to make, or cause the Company or any of its Subsidiaries to make, all tax
elections of the Company or such Subsidiary, which GCT deems appropriate.
Additionally, at any time, the Company or any of its Subsidiaries shall, if so
requested by GCT, make an election to be classified as a partnership or a
disregarded entity, as the case may be, for United States federal income tax
purposes (a "Partnership Election") by filing an election on Internal Revenue
Service Form 8832 (or any successor form), all of which elections shall be
effective as of a date specified by GCT. The Partnership Election may be signed
by any Director or Officer of the Company who is authorized by the Board of
Directors to sign on behalf of the Company.

                  (b) This Agreement currently provides that the liquidation of
the Company will be effected by the sale of Shares. The Shareholders agree that
it may be in the interest of all parties to provide that any liquidation could
also be effected by a sale of assets. The Shareholders agree to negotiate in
good faith to consider whether such an alternative is acceptable and if so, to
enter into an amendment to this Agreement to provide for such alternative.

                  Section 5.3  Capital Accounts; Book Allocations. A capital
account (each a "Capital Account") shall be maintained for each Shareholder. The
Capital Account of each Shareholder shall be credited with the Subscription
Price paid by such Shareholder, increased by any allocation of income or gain
and by any additional capital contributions (other than Shareholder Loans) by
that Shareholder, and shall be reduced by any allocations of loss, expense or
deduction and by any distribution to that Shareholder. Except as otherwise
provided herein, all items of Company income, gain, loss, expense or deduction
shall be allocated to the Capital Accounts of the Shareholders in proportion to
their Share Percentage. The foregoing provisions relating to the maintenance of
Capital Accounts and allocations of Company income, gain, loss, expense or
deduction are intended to comply with U.S. Federal Treasury regulations Section
1.704-1(b) (including, without limitation, the "qualified income offset"
provisions contained therein), and shall be interpreted and applied in a manner
consistent with such U.S. Federal Treasury regulations. Additionally, the
foregoing allocation provisions shall be interpreted and applied in a manner
consistent with the "minimum gain chargeback" provisions set forth in U.S.
Federal Treasury regulations Sections 1.704-2(f) and 1.704-2(i)(4).

                  Section 5.4  Tax Allocations. Except as otherwise required by
the Code or the U.S. Federal Treasury regulations, all items of Company income,
gain, loss, expense, deduction and any other items shall be allocated among the
Shareholders for federal income tax purposes in the same proportions as they
share the corresponding items pursuant to Section 5.3.
<PAGE>   28
                                                                              23

                  Section 5.5  Income Tax Information. The Shareholders agree to
use their reasonable best efforts to cause the Company to prepare and send, or
cause to be prepared and sent, by April 1 of each Fiscal Year and to each Person
who was a Shareholder at any time during such Fiscal Year, copies of such
information as may be required for applicable income tax reporting purposes,
including such information as a Shareholder may reasonably request for the
purpose of applying for refunds of withholding taxes.

                                   ARTICLE VI

                            [Intentionally omitted.]

                      ARTICLE VII - TRANSFER AND ASSIGNMENT

                  Section 7.1  Transfer of Securities.

                  (a) Except as expressly permitted by paragraph (b) below, no
Shareholder shall, directly or indirectly, sell (whether by involuntary or
judicial sale or otherwise), transfer, create, incur, assume or suffer to exist
a lien on, grant a security interest in, pledge, hypothecate, assign, give or
otherwise (voluntarily or by operation of law) dispose of (any such act is
hereinafter referred to as a "Transfer") any Shares to any person.

                  (b) A Shareholder may (i) transfer any Shares or any interest
therein or any rights to purchase Shares hereunder to an Affiliate of such
Shareholder; provided, however, in the event that such Affiliate shall cease to
be an Affiliate of such Shareholder, then, prior to such time, such Shareholder
shall cause such Affiliate to transfer any Shares or interests therein or rights
to purchase Shares held by it to such Shareholder, (ii) pledge any or all Shares
or grant a security interest therein to secure indebtedness under any
Construction Financing or pledge any or all Shares or grant a security interest
therein to secure indebtedness of the Shareholder owing to a bank or other
lender, provided that any such bank or other lender (other than pursuant to the
Construction Financing) pursuant to this clause (ii) shall acquire only a
security interest in the Shares entitling such bank or other lender only to the
proceeds from any sale of the Shares in accordance with the terms of this
Agreement and shall not acquire title to the Shares or any other rights incident
thereto, and, in the case of any foreclosure on the Shares by such bank or other
lender, the pledgee shall be considered an "Offeror" (as defined below) and
shall not be permitted to consummate the foreclosure without complying with the
provisions of Section 7.2 hereof or (iii) subject to the provisions of Section
7.2, sell, transfer, assign, give or otherwise dispose of any Shares to any
Person (any such transferee pursuant to clause (i), (ii) or (iii) above shall be
referred to herein as a "Permitted Transferee"); provided, however,
notwithstanding anything to the contrary contained in this paragraph, no
Transfer shall be permitted (w) to a Person who is at such time a Carrier, (x)
under clause (ii) or (iii) above to any Person prior to the Construction
Completion Date except if such Person is a Shareholder, (y) to any Person unless
the creditworthiness of such Person is reasonably satisfactory to a majority of
the non-transferring shareholders or (z) if, as a result thereof, the Company
would be subject to any requirements it was not subject to immediately prior to
such Transfer including, without limitation, under United States federal or
state securities laws or regulations. Notwithstanding the foregoing, in the case
of a Permitted Transferee of a Shareholder where such transferee is a United
<PAGE>   29
                                                                              24

States resident or citizen, any Transfer pursuant to this paragraph (b) shall be
subject to the prior written consent of the Company, which consent shall be
granted unless, in the opinion of the Company, such transfer might result in the
Company or any Shareholder incurring any tax liability, the Company being
involved in any litigation, the Company being registered or regulated as an
investment company under the United States Investment Company Act of 1940, as
amended, or suffering any other pecuniary or fiscal disadvantage or other
adverse effect which the Company might not otherwise incur or suffer.

                  (c) In the event a Transfer of any Shares has taken place in
violation of the provisions of this Agreement, the Board of Directors shall
refuse to register such Transfer in the Register and such Transfer shall be void
and of no effect, and no distribution of any kind shall be paid by the Company
to the transferee in respect of such Shares (all such dividends and
distributions being deemed waived), and the voting rights, if any, of such
Shares on any matter whatsoever shall remain vested in the transferor during the
period commencing with such transferor's initial noncompliance and ending when
compliance shall have occurred.

                  (d) GCT hereby confirms the validity of that certain Charge
Over Shares, dated as of July 30, 1998, as amended, restated or otherwise
modified from time to time, between GCT and Deutsche Bank AG, New York Branch,
as Administrative Agent. Marubeni hereby confirms the validity of that certain
Charge Over Shares, dated as of July 30, 1998, as amended, restated or otherwise
modified from time to time, between Marubeni and Deutsche Bank AG, New York
Branch, as Administrative Agent. SCS hereby confirms the validity of that
certain Charge Over Shares, dated as of July 30, 1998, as amended, restated or
otherwise modified from time to time, between SCS and Deutsche Bank AG, New York
Branch, as Administrative Agent.

                  Section 7.2  Right of First Refusal.

                  (a) Prior to any Shareholder making any Transfer in accordance
with clause (iii) of Section 7.1(b), such Shareholder (the "Offeror") shall
provide written notice (the "Notice") to the Company, which notice shall set
forth (i) confirmation that such Offeror intends to Transfer all or certain of
its Shares in a bona fide transaction with a third party in accordance with
Section 7.1(b)(iii), (ii) the name and address of each proposed transferee or
purchaser and such other information as is reasonably necessary to determine
that such transferee or purchaser is not a Carrier, (iii) the number of Shares
proposed to be Transferred (the "Offered Shares"), (iv) the proposed amount and
form of consideration to be paid for the Offered Shares, and (v) all other
material terms of the proposed Transfer. The Company shall provide each other
Shareholder (each, an "Offeree") a copy of the Notice within five days of
receipt thereof. Within 45 days of receipt of the Notice, the Company shall (if
and only if requested by Offerees holding 75% of the Shares other than the
Offered Shares) elect to buy all of the Offered Shares at the price and on the
terms and conditions set forth in the Notice by delivery of a written notice to
the Offeror (the "Company Election Notice") with a copy to each Offeree, which
notice shall constitute the binding agreement of the Company to purchase all of
such shares at the price and on the terms and conditions set forth in the
Notice. Within 45 days of delivery of the Company Election Notice, the Company
shall deliver a certified check payable to such Offeror, or to such other person
as such Offeror may request, in the amount of the purchase price (as calculated
below) of such Offered Shares to be purchased by the Company. Upon receipt of
payment for the Offered Shares, such Offeror shall deliver instruments of
transfer properly endorsed in blank, together with the corresponding
certificate(s) representing all such Offered Shares to the Company.
<PAGE>   30
                                                                              25

                  (b) Each Offeree may elect to buy all or any portion of the
Offered Shares at the price and upon the terms and conditions set forth in the
Notice in the event that the Company shall elect not to deliver a Company
Election Notice or shall fail to deliver the purchase price of the Offered
Shares in accordance with the terms hereof. Each Offeree shall make such
election by delivery of a written notice (the "Offeree Election Notice") to the
Offeror within 45 days of the date of receipt of the Notice by the Company,
which Offeree Election Notice, in the event that the Company shall elect not to
deliver a Company Election Notice or shall fail to deliver the purchase price of
the Offered Shares, shall constitute the binding agreement of each Offeree to
purchase the number of Offered Shares set forth in the Offeree Election Notice
(the "Offeree Election Number") at the price and upon the terms and conditions
set forth in the Notice. If more than one Offeree shall send an Offeree Election
Notice and the aggregate Offeree Election Numbers equal or exceed the number of
Offered Shares, then each Offeree shall be entitled to purchase (i) its pro rata
share (the "Pro Rata Share"), based upon the relative interests in the Shares of
the Company, on a fully diluted basis, held by all Offerees, of the Offered
Shares, to the extent the Offerees have elected to do so and (ii) its pro rata
share based on the unfulfilled Offeree Election Numbers of the remaining Offered
Shares and the Offeree Election Notice shall be deemed to be an election to
purchase such Shares. If the Company shall elect not to deliver a Company
Election Notice or shall fail to deliver the purchase price of the Offered
Shares in accordance with the terms hereof, the Offeror shall deliver written
notice thereof (the "Purchase Notice") to each Offeree who has submitted an
Offeree Election Notice. The Purchase Notice shall state the number of Offered
Shares to be acquired by each such Offeree and the closing date for such
transaction, which date shall not be less than 30 days from the date of delivery
of the Purchase Notice to all such Offerees. At such closing, each such Offeree
shall deliver to such Offeror, or to such other person as such Offeror may
request, by wire transfer of immediately available funds, the amount of the
purchase price (as calculated below) of the Offered Shares to be purchased by
such Offeree, to be held in escrow against delivery of the instruments of
transfer properly endorsed in blank, and the corresponding certificate(s)
representing all such Offered Shares. If any Offeree shall fail to deliver such
purchase price, then the other Offerees may purchase, pro rata, the Offered
Shares to have been purchased by such Offeree by wire transfer of immediately
available funds of the purchase price for such additional Offered Shares, to be
held in escrow against delivery of the instruments of transfer properly endorsed
in blank, and the corresponding certificate(s) representing all such Offered
Shares. Upon receipt of payment for all of the Offered Shares, such Offeror
shall deliver instruments of transfer properly endorsed in blank and the
corresponding certificates representing all such Offered Shares to the
respective Offerees.

                  (c) If a Company Election Notice or Offeree Election Notice is
not received by such Offeror from the Company or any Offeree within the
respective periods specified in paragraphs (a) and (b) above, or if the Company
or the Offerees elect to purchase less than all of the Offered Shares or fail to
deliver the purchase price of the Offered Shares in accordance with the terms
hereof, the Offeror shall have the right to transfer, sell or otherwise dispose
of the Shares specified in the Notice to the proposed purchaser or transferee in
accordance with the terms of this Agreement, but only at a price and upon terms
and conditions no less favorable to the Offeror than those stated in the Notice
and only if such sale occurs on a date within 120 days from the date of the
Notice.

                  (d) For purposes of calculating the purchase price of any such
transfer, sale or disposition, if any portion of the consideration consists of
other than cash and/or readily marketable securities, the fair market value of
any non-cash consideration shall be determined, at the expense of the Offeror,
by a nationally recognized independent valuation consultant or appraiser (with
experience
<PAGE>   31
                                                                              26

evaluating such type of property) selected by the Offeror and reasonably
satisfactory to the Company or each Offeree, as the case may be. All payments by
the Company or Offerees pursuant to this Section 7.2 shall be in cash.

                  (e) The closing of the transactions contemplated by this
Section 7.2 shall occur at the principal place of business of the Company unless
otherwise agreed to in writing by the Company and the parties to such
transaction.

                  (f) The provisions of this Section 7.2, as well as the proviso
contained at the end of the first sentence of Section 7.1(b), shall apply to any
transfer of any capital stock or other equity securities of any Shareholder or
other entity where substantially all of such Shareholder's or other entity's
assets are directly or indirectly comprised of Shares (a "Special Purpose
Shareholder").

                  Section 7.3  Tag-Along Rights.

                  (a) If any holder of Shares (the "Selling Shareholder"), at
any time or from time to time, enters into an agreement (whether oral or
written) to transfer any Shares in accordance with clause (iii) of Section
7.1(b) (a "Tag-Along Sale"), then each Shareholder other than the Selling
Shareholder (the "Other Holders") shall have the right, but not the obligation,
to participate in such Tag-Along Sale by selling the number of Shares
respectively owned by such Other Holder as calculated in the following manner.
Such Shares owned by the Other Holders are hereinafter referred to collectively
as the "Shareholders' Shares." The number of Shares that the Other Holders shall
be entitled to include in such Tag-Along Sale (the "Shareholders' Allotment")
shall equal the product (rounded down to the nearest whole share) of (i) the
total number of Shares proposed to be Transferred pursuant to the Tag-Along Sale
or such greater number of shares that the proposed purchaser in the Tag-Along
Sale shall agree to purchase or otherwise acquire, times (ii) a fraction, the
numerator of which shall equal the aggregate number of Shareholders' Shares on
the date of the Sale Notice (as defined below), and the denominator of which
shall equal the sum of (A) the aggregate number of Shares owned by the Selling
Shareholder on the date of the Sale Notice plus (B) the aggregate number of
Shareholders' Shares on the date of the Sale Notice. For purposes of this
Section 7.3, the number and price of Shares shall be calculated on a fully
diluted basis. Any such sales by the Other Holders shall be on the same terms
and conditions as the proposed Tag-Along Sale by the Selling Shareholder,
provided, however, that no Other Holder shall be required to make any
representation, covenant or warranty in connection with the Tag-Along Sale,
other than as to its ownership and authority to sell, free of liens, claims and
encumbrances, the Shares proposed to be sold by it.

                  (b) Notwithstanding the foregoing, this Section 7.3 shall not
apply to any transfer to a Shareholder or the Company pursuant to Section 7.2
hereof.

                  (c) The Selling Shareholder shall promptly provide each of the
Other Holders and the Company with written notice (the "Sale Notice") not less
than 30 days prior to the proposed date of the Tag-Along Sale (the "Tag-Along
Sale Date"). In order to facilitate the prompt delivery of the Sale Notice, the
Company hereby covenants to provide the Selling Shareholder participating in a
Tag-Along Sale access to the Register of the Company. Each Sale Notice shall set
forth (i) the name and address of each proposed transferee or purchaser of
Shares in the Tag-Along Sale, (ii) the name and address of the Selling
Shareholder and the number of Shares proposed to be transferred by such Selling
<PAGE>   32
                                                                              27

Shareholder, (iii) the proposed amount and form of consideration to be paid for
such Shares and the terms and conditions of payment offered by each proposed
transferee or purchaser, (iv) the number of Shareholders' Shares held of record
as of the close of business on the date of the Sale Notice (the "Notice Date")
by the Other Holders to whom the notice is sent, (v) the aggregate number of
Shares held of record as of the Notice Date by the Selling Shareholder, (vi) the
number of Shares that the Other Holder is entitled to include in the Tag-Along
Sale (as computed in accordance with the equation set forth above) assuming each
Other Holder elected to sell the maximum number of Shareholders' Shares
possible, (vii) the number of Shareholders' Shares in the Shareholders'
Allotment, (viii) confirmation that the proposed purchaser or transferee is not
a Carrier and has been informed of the "Tag-Along Rights" provided for herein
and has agreed to purchase Shares in accordance with the terms hereof, and (ix)
the Tag-Along Sale Date.

                  (d) Each Other Holder who wishes to participate in the
Tag-Along Sale shall provide written notice (or oral notice confirmed in
writing) (the "Tag-Along Notice") to the Selling Shareholder and the Company not
less than ten days prior to the Tag-Along Sale Date. The Tag-Along Notice shall
set forth the number of Shares that such Other Holder elects to include in the
Tag-Along Sale, which shall not exceed the product of (x) the Shareholders'
Allotment times (y) a fraction, the numerator of which is equal to the aggregate
number of Shareholders' Shares owned of record as of the Notice Date by such
Other Holder and the denominator of which is the aggregate number of
Shareholders' Shares owned of record by all of the Other Holders as of the
Notice Date. The Tag-Along Notice shall also specify the aggregate number of
additional Shares owned of record as of the Notice Date by such Other Holder, if
any, which such Other Holder desires also to include in the Tag-Along Sale
("Additional Shares") in the event there is an undersubscription for the entire
Shareholders' Allotment. In the event there is an undersubscription by the Other
Holders for the entire Shareholders' Allotment, the Selling Shareholder
participating in the Tag-Along Sale shall apportion the unsubscribed
Shareholders' Shares to Other Holders whose Tag-Along Notices specified an
amount of Additional Shares, which apportionment shall be on a pro rata basis
among such Other Holders in accordance with the number of Additional Shares
specified by all such Other Holders in their Tag-Along Notices.

                  (e) The Company shall determine the aggregate number of Shares
to be sold by each participating Other Holder or in any given Tag-Along Sale in
accordance with the terms hereof, and the Tag-Along Notices given by the Other
Holders shall constitute their binding agreements to sell such shares at the
price and on the terms and conditions applicable to such sale.

                  (f) If a Tag-Along Notice is not received by the Selling
Shareholder participating in the Tag-Along Sale from an Other Holder prior to
the ten day period specified above, the Selling Shareholder shall have the right
to Transfer the number of Shares specified in the Sale Notice to the proposed
purchaser or transferee without any participation by such Other Holder (subject
to the right of Other Holders to sell Additional Shares in the event of an
undersubscription as described above), but only at a price and upon terms and
conditions no more favorable to the Selling Shareholder than those stated in
such Sale Notice and only if such sale occurs on a date within 90 days of the
Tag-Along Sale Date.

                  (g) The provisions of this Section 7.3 shall apply to any
transfer of any capital stock or other equity securities of any Shareholder or
other entity where substantially all of such Shareholder's or other entity's
assets are directly or indirectly comprised of Shares.

<PAGE>   33
                                                                              28

                  Section 7.4       Drag-Along Rights.

                  (a) Notwithstanding any other provision hereof, if
Shareholders holding 75% or more of the issued and outstanding Shares (the
"Initiating Shareholders") agree to sell (a "Drag-Along Sale") 100% of the
aggregate number of Shares then held by the Initiating Shareholders to any
person who is not an Affiliate of the Initiating Shareholders (a "Third Party"),
then upon the demand of the Initiating Shareholders, the other Shareholders
hereby agree to sell to such Third Party 100% of the Shares then held by them,
at a price per share and on terms and conditions no less favorable to such other
Shareholders than those on which the Initiating Shareholders have agreed to sell
their Shares to such Third Party, provided, however, that (i) no Shareholder
shall be obligated to participate in any Drag-Along Sale unless each Shareholder
is provided an opinion of counsel, which opinion and counsel shall be reasonably
satisfactory to such Shareholder, to the effect that the Drag-Along Sale is not
in violation of applicable Federal or state securities or other laws, (ii) no
Shareholder shall be required to make any representation, covenant or warranty
in connection with the Drag-Along Sale, other than as to its ownership and
authority to sell, free of liens, claims and encumbrances, the Shares proposed
to be sold by it and (iii) no Shareholder shall be required to accept any
consideration for its Shares other than cash and marketable securities.

                  (b) Prior to making any Drag-Along Sale, the Initiating
Shareholders shall promptly provide each Shareholder with written notice (the
"Drag-Along Notice") not more than 60 nor less than 30 days prior to the
proposed date of the Drag-Along Sale (the "Drag-Along Sale Date"). The
Drag-Along Notice shall set forth: (i) the name and address of the Third Party,
(ii) the proposed amount and form of consideration to be paid per share and the
terms and conditions of payment offered by the Third Party, (iii) the number of
shares of Shares held of record as of the close of business on the date of the
Drag-Along Sale Notice (the "Drag-Along Notice Date") by the Initiating
Shareholders, (iv) confirmation that the Initiating Shareholders are selling
100% of the aggregate number of shares of Shares then held by them to a Third
Party, and (v) the Drag-Along Sale Date.

                  (c) On the Drag-Along Sale Date, each Shareholder shall
deliver an instrument of transfer and the corresponding certificate or
certificates for all of its Shares, duly endorsed for transfer with signatures
guaranteed, to such Third Party in the manner and at the address indicated in
the Drag-Along Sale Notice and the Initiating Shareholders shall (i) cause each
Shareholder's pro rata share of the purchase price to be paid to such
Shareholder and (ii) deliver to each Shareholder the opinion of counsel
contemplated by Section 7.4(a) hereof.

                  (d) The provisions of this Section 7.4 shall apply regardless
of the form of consideration received in the Drag-Along Sale; provided, however,
that if the Initiating Shareholders have agreed to sell any Shares for non-cash
consideration, the proposed purchaser's offer shall include (or, at its option,
the Initiating Shareholders may otherwise provide) an option for the Shareholder
to participate in such Drag-Along Sale and to select as consideration for its
sale either its pro rata share of such non-cash consideration or cash in the
amount of the fair market value of such non-cash consideration, which fair
market value shall be determined by an internationally recognized independent
valuation consultant or appraiser (with experience evaluating such type of
property) to be selected by the Initiating Shareholders and reasonably
satisfactory to the Shareholders holding a majority of the outstanding shares of
Shares then held by Shareholders requesting the appraisal.
<PAGE>   34
                                                                              29

                  (e) Any Shareholder who participates in the Drag-Along Sale
and receives its proportionate share of the purchase price therefrom who fails
to deliver an instrument of transfer properly endorsed in blank and
corresponding certificate or certificates for all of its Shares as described in
this Section 7.4, hereby appoints the President as its duly appointed
attorney-in-fact to execute an instrument of transfer and a suitable indemnity
in respect of the missing certificate(s) for its Shares. Furthermore, such
Shareholder shall for all purposes be deemed no longer to be a shareholder of
the Company, shall have no voting rights, shall not be entitled to any dividends
or other distributions in respect of the Company's Shares held by it (all such
dividends and distributions being deemed waived), shall have no other rights or
privileges granted to shareholders under this or any future agreement and, in
the event of liquidation of the Company, its rights with respect to any
consideration it would have received if it had complied with this Section 7.4,
if any, shall be subordinate to the rights of any equity holder.

                  (f) In the event that a proposal is made by a Third Party for
a merger or consolidation involving all of the Company's Shares or any of the
Company's Subsidiaries or to purchase all or substantially all of the Company's
assets (a "Third Party Proposal") and the Initiating Shareholders approves in
writing such Third Party Proposal, each Shareholder agrees to vote or give
written consent, or to cause its Director Designees to vote or give written
consent, in favor of such Third Party Proposal approved by the Initiating
Shareholders; provided that the other Shareholders shall not be required to take
any such action unless the price per share, and other terms and conditions of
such proposal, shall be no less favorable to the other Shareholders than those
applicable to the Initiating Shareholders; provided, further, that (i) no
Shareholder shall be obligated to take any such action unless each Shareholder
is provided an opinion of counsel, which opinion and counsel shall be reasonably
satisfactory to such Shareholder, to the effect that the Third Party Proposal is
not in violation of applicable Federal or state securities or other laws, (ii)
no Shareholder shall be required to make any representation, covenant or
warranty in connection with the Third Party Proposal, other than as to its
ownership and authority to transfer, free of liens, claims and encumbrances, the
shares of Shares proposed to be transferred by it and (iii) no Shareholder shall
be required to accept any consideration for its Shares other than cash and
readily marketable securities.

                  Section 7.5 Involuntary Transfers. In the event any or all of
a Shareholder's interest in the Company is transferred involuntarily, directly
or indirectly, by operation of law or otherwise, such Shareholder shall give
written notice (an "Involuntary Transfer Notice") promptly after receiving
knowledge thereof, and in any case within 15 days of such involuntary Transfer,
to the other Shareholders, with a copy to the transferee, stating the fact that
the involuntary Transfer occurred, the reason therefor, the date of such
Transfer, the name and address of the transferee and the interest acquired by
such transferee.

                  Section 7.6 Liability of Transferor. In the event that any
Shareholder proposes to make a Transfer permitted under this Article, such
Shareholder shall cause the transferee, prior to such Transfer, to execute one
or more instruments pursuant to which the transferee adopts and agrees to be
bound as a Shareholder to this Agreement and such transferring Shareholder shall
be released from the obligations hereunder (including its commitment under
Section 2.7) with respect to the interest represented by the transferred Shares
assumed by the transferee and, until the transferee executes said instrument(s),
such transfer shall not be valid and effective and the transferor shall remain
fully liable for the acts, omissions or defaults of the transferee with respect
to the interest represented by the
<PAGE>   35
                                                                              30

proposed transferred Shares and the provisions of this Agreement, as if the
transferor were still a party hereto. No Transfer shall relieve the transferor
of responsibility for its own acts, omissions or defaults.

                  Section 7.7 Prohibited Transfers. Notwithstanding anything in
this Article VII to the contrary, no Shareholder may transfer its Shares (i) in
violation of applicable law and, in particular, without the permission of the
Bermuda Monetary Authority, as necessary, or (ii) in violation of any of the
provisions of the Company's Bye-Laws or Memorandum of Association.

                  Section 7.8 Expenses in Connection with Transfers. Each
Shareholder shall reimburse the Company for all reasonable expenses incurred by
the Company in connection with any Transfer proposed or effectuated by such
Shareholder.

                  Section 7.9 Exit Rights of SCS. At any time after the
Construction Completion Date, if any of the following events occurs:

                  (a) the Company fails to make 100% of the dividend
         distributions available to be made in accordance with the provisions of
         Section 2.10 because 75% or more of the Directors decided to distribute
         less than 100% of such available dividend distributions as provided for
         in such Section 2.10;

                  (b) the Company has disposed of the full capacity of the
         System;

                  (c) seven (7) years have elapsed from the date of this
         Agreement; or

                  (d) SCS's Share Percentage shall at any time fall below 10% as
         a result of any action it has not approved or otherwise consented to;

then, SCS shall have, in its sole discretion and upon giving to all other
Shareholders written notice (hereinafter "Exit Notice"), the right to sell all
of its Shares ("Exit Shares") to the remaining Shareholders (if such remaining
Shareholders agree) for their fair market value in cash ("Purchase Price"). Upon
receipt of the Exit Notice, each Shareholder other than SCS shall have the right
to purchase from SCS a pro rata portion of the Exit Shares in proportion to its
respective Share Percentage. The procedural provisions of Section 7.2 shall
govern such offer and purchase. Upon the sale of the Exit Shares, SCS will no
longer be a party to this Agreement, and the provisions of Section 7.6 shall be
applicable. If the remaining Shareholders shall elect to purchase less than all
of the Exit Shares, then SCS shall have the right to engage a third party
adviser to sell the Exit Shares to persons other than the Shareholders in
accordance with the provisions of Section 7.1(b).

                ARTICLE VIII - REPRESENTATIONS, WARRANTIES AND COVENANTS

                  Section 8.1 Representations and Warranties. Each Shareholder
represents and warrants to each of the other Shareholders as of the date hereof
as follows:

                  (a) Such Shareholder is duly organized and validly existing
under the laws of the jurisdiction of its organization and has all requisite
power and authority to own, lease and operate its
<PAGE>   36
                                                                              31

properties, to carry out its business as it is now being conducted and to
perform its obligations hereunder, and under its constituent documents, and to
consummate the transactions contemplated hereby and thereby.

                  (b) The execution, delivery and performance by such
Shareholder of this Agreement and the other documents referenced herein to which
it is or is to be a party have been authorized by all necessary action on the
part of such Shareholder, and do not and will not: (i) require any
authorization, consent or approval that has not been given or obtained of such
Shareholder or to the best of its knowledge, any governmental authority, (ii)
violate any law, rule, regulation, order, or decree presently in effect and
having applicability to it, (iii) violate the organizational documents of such
Shareholder, (iv) violate any permit, concession, grant, franchise, license or
other governmental authorization, approval, judgment, order or decree, or any
mortgage, agreement, deed of trust, indenture or any other instrument to which
it is a party or by which it is bound or any of its properties or assets are
bound or which is otherwise applicable to it or (v) create or impose any liens,
mortgages, pledges, claims, security interests, charges or encumbrances or
obligations to create a lien, charge, pledge or mortgage.

                  (c) This Agreement is the legal and binding obligation of such
Shareholder, enforceable against such Shareholder in accordance with its terms,
and any other document referenced herein to which it is or is to be a party,
when duly executed and delivered by the parties thereto, will be the legal and
binding obligation of such Shareholder enforceable against such Shareholder in
accordance with its terms.

                  (d) There is no litigation pending or, to such Shareholder's
knowledge, threatened to which such Shareholder or any of its Affiliates is a
party which, if adversely determined, would have a material adverse effect on
the financial condition or prospects or business of such Shareholder or the
Company.

                  (e) All negotiations relating to this Agreement and the
transactions contemplated hereby have been carried out without the intervention
of any person acting on behalf of such Shareholder in a manner that could give
rise to any valid claim against the Company or any other Shareholder for any
brokerage or finder's commission, fee or similar compensation.

                  (f) It is not the agent of any other Shareholder for any
purpose hereof, and no Shareholder is authorized to take any action on behalf of
any other Shareholder except as expressly set forth herein (except, in the case
SCS, where SCS is authorized to take action on behalf of GCT in GCT's capacity
as a shareholder of SCS).

                  Section 8.2       Covenants.

                  (a) Cooperation in Financing; Further Assurances. Each
Shareholder hereby undertakes to cooperate in good faith with all commercially
reasonable requests of the providers of the Construction Financing relating to
such Shareholder and its participation in the transactions contemplated by this
Agreement.

                  (b) Compliance with Laws. In the performance of their
obligations under this Agreement, the Shareholders and the Company shall, and
shall cause their respective directors, officers,
<PAGE>   37
                                                                              32

employees and agents to, comply strictly with all applicable laws, regulations
and orders of all applicable jurisdictions.

                  (c) No Duty of Loyalty. The Shareholders and their Affiliates
shall have no fiduciary duty or other duty of loyalty to the Company or any
other Shareholder and shall be free to engage in business, or invest in
businesses, competitive with the Company.

                                   ARTICLE IX

                             [INTENTIONALLY OMITTED]

                           ARTICLE X - CONFIDENTIALITY

                  Section 10.1 Confidentiality. Each of the Shareholders agrees
that materials disclosed to another Shareholder hereunder or under any
predecessor of this Agreement to evaluate various aspects of the transaction as
well as documents prepared by the Shareholders pursuant to this Agreement or
under any predecessor of this Agreement may contain proprietary confidential
information and trade secrets ("Confidential Information") and the disclosure or
unauthorized use of such Confidential Information could cause irreparable
injury. Each Shareholder agrees that all such Confidential Information provided
by another Shareholder will be used and disclosed only to officers, directors,
employees and advisors of a Shareholder who need to know such Confidential
Information for the purpose and to the limited extent necessary to evaluate the
business relationship herein described and to take the steps contemplated by
this Agreement (including without limitation, Article VII, so long as any
potential purchaser executes a confidentiality agreement agreeing to the
provisions set forth in this Article X) and such Confidential Information shall
not otherwise be disclosed to any other person. All extracts, digests, and
copies of such Confidential Information shall be maintained under strict control
by its recipient. The term "Confidential Information" shall not include such
portions of the Confidential Information which (i) is generally available to the
public or has become, after the time of discovery, part of the public domain by
publication or otherwise through no fault of the receiving party, (ii) was,
prior to the time of disclosure, already known to the receiving party and was
not acquired, directly or indirectly, from the disclosing party or its
representatives, (iii) is, after the time of disclosure, independently developed
by the receiving party and not as a result of disclosure of the Confidential
Information by the disclosing party to the receiving party, (iv) is, after the
time of disclosure, acquired in good faith without any restriction of
confidentiality from a third party who is under no secrecy obligation to the
disclosing party with respect thereto which is known to the receiving party or
(v) is no longer treated as confidential by the disclosing party. The provisions
of this Article X shall be also binding upon each shareholder of any Special
Purpose Shareholder.

                       ARTICLE XI - DEFAULTS AND REMEDIES

                  Section 11.1      Defaults.  If any Shareholder:
<PAGE>   38
                                                                              33

                  (a) commits a material breach of its obligations under this
         Agreement, including its obligations under Section 2.7 which is not
         cured within 10 Business Days after notice; or

                  (b) shall (i) fail generally to pay its debts as they become
         due, (ii) admit in writing its inability to pay its debts generally as
         they become due, (iii) commence a voluntary bankruptcy or insolvency
         case or proceeding, (iv) consent to, or acquiesce in, the institution
         of a bankruptcy or an insolvency proceeding against it or the entry of
         a judgment, decree or order for relief against it in an involuntary
         case or proceeding, (v) apply for, consent to or acquiesce in the
         appointment of or taking possession by a custodian or its business or
         of any part of its property, (vi) make a general assignment for the
         benefit of its creditors or (vii) take any corporate action in
         furtherance of or to facilitate, conditionally or otherwise, any of the
         foregoing; or

                  (c) shall be subject to a judgment, decree or order of court
         of competent jurisdiction which (i) is for relief against it in an
         involuntary bankruptcy or insolvency case, (ii) appoints a custodian of
         its business or for any part of its property or (iii) orders the
         winding-up or liquidation of its affairs; and such judgment, decree or
         order shall remain unstayed and in effect for a period of 30
         consecutive days; or any bankruptcy or insolvency petition or
         application shall be filed, or any bankruptcy case or insolvency
         proceeding shall be commenced against it and such petition,
         application, case or proceeding is not dismissed within 60 days;

then in the case of any event described in the foregoing subclauses (a), (b), or
(c) (each an "Event of Default") such Shareholder shall for the purposes hereof
be deemed a "Defaulting Shareholder." Shareholders which are not Defaulting
Shareholders shall for the purposes hereof be deemed "Non-Defaulting
Shareholders", and any Non-Defaulting Shareholder may (and the Company shall)
serve notice (a "Default Notice") on a Defaulting Shareholder of the occurrence
of an Event of Default.

                  Each Shareholder agrees that with respect to the payment of
its Budgeted Capital Contributions, time is of the essence, that any Event of
Default by any Shareholder would cause injury to the Company and to the other
Shareholders and that the amount of damages caused by any such injury would be
extremely difficult to calculate. Accordingly, the Shareholders agree that upon
any Event of Default by a Shareholder at any time, all of the succeeding
provisions of this Article XI shall apply.

                  Section 11.2 Actions Upon Default. (a) In the case of a
default described by Section 11.1(a) that is not a default caused by the failure
to fund a Budgeted Capital Contribution required pursuant to Section 2.7, the
Defaulting Shareholder shall have 90 days after the receipt of a Default Notice
within which to remedy the breach. During such 90 day period, the Shareholders
shall use their commercially reasonable efforts to resolve the matter to their
mutual satisfaction.

                  (b) In the case of a default described by Section 11.1(a) that
is a default caused by the failure to fund a Budgeted Capital Contribution
required pursuant to Section 2.7, the Defaulting Shareholder shall have five
Business Days after the designated Capital Call Date for such Budgeted Capital
Contribution to fund such Budgeted Capital Contribution. If, after such five day
period, the Defaulting Shareholder has not funded its required Budgeted Capital
Contribution, (i) the President shall promptly notify each Non-Defaulting
Shareholder of such failure and (ii) any Non-Defaulting Shareholder shall have
the right (but not the obligation), upon three days prior written notice to the
Defaulting Shareholder, to fund the unfunded portion of such Budgeted Capital
Contribution within 60
<PAGE>   39
                                                                              34

Business Days after the designated Capital Call Date for such Budgeted Capital
Contribution. If a Non-Defaulting Shareholder funds the unfunded portion of such
Budgeted Capital Contribution, the Defaulting Shareholder, in its capacity as a
Shareholder, shall transfer Shares for no consideration to such Non-Defaulting
Shareholder, in its capacity as a Shareholder, such that after giving effect to
such transfer the Share Percentages of the Shareholders, in their capacities as
Shareholders, shall equal their respective Interests. Amounts contributed by a
Non- Defaulting Shareholder pursuant to this Section 11.2(b) shall not be, and
shall not be deemed to be, in respect of or in satisfaction of its Capital
Commitment hereunder. If, within 60 Business Days after the designated Capital
Call Date for such Budgeted Capital Contribution, a Defaulting Shareholder shall
not have made such Budgeted Capital Contribution (together with interest
thereon) and no Non-Defaulting Shareholder(s) shall have funded such Budgeted
Capital Contribution, then such Defaulting Shareholder's Interest shall be
reduced by half and each Non-Defaulting Shareholder's Interest shall be
increased by a ratable portion of such reduction. The Company shall cancel
Shares and issue new Shares to reflect the foregoing changes in Shareholders'
Interests.

                  (c) In the case of a default described by Section 11.1(b) or
Section 11.1(c), in the case of a default described by Section 11.1(a) that is
not a default caused by the failure to fund a Budgeted Capital Contribution
required pursuant to Section 2.7, if at the end of the applicable 90-day period
the Defaulting Shareholder has not remedied the default or the matter has not
otherwise been settled to the satisfaction of the Non-Defaulting Shareholders,
or in the case of a default described by Section 11.1(a) that is a default
caused by the failure to fund a Budgeted Capital Contribution required pursuant
to Section 2.7, if at the end of the applicable five day period, the Defaulting
Shareholder has not funded the required Budgeted Capital Contribution, then in
either case, the Non-Defaulting Shareholders shall have the right, at their
option, to (i) obtain money damages from the Defaulting Shareholder and/or (ii)
terminate this Agreement upon written notice (a "Termination Notice") to the
Defaulting Shareholder, in which event the provisions of Section XIII shall
apply, and/or (iii) exercise their purchase option pursuant to Section 11.3
below.

                  Section 11.3 Option of Non-Defaulting Shareholders to Purchase
Shares. (a) In addition to the remedies set out in Section 11.2, the
Non-Defaulting Shareholders may, within 90 days of their being so entitled,
purchase on a pro rata basis, the interest in the Company owned by the
Defaulting Shareholder for a price in cash equal to the lesser of (i) the fair
market value of such interest (as reduced pursuant to Section 11.2) at the end
of the most recently ended Fiscal Quarter and (ii) the amount of such interest
(as reduced pursuant to Section 11.2) less the amount owed to the Company in
respect of the Defaulting Shareholder's unpaid Budgeted Capital Contribution.

                  (b) If the Non-Defaulting Shareholders elect to purchase the
interest in the Company owned by the Defaulting Shareholder pursuant to this
Section 11.3 for a price less than that set forth in 11.3(a)(ii), the
Shareholders will attempt in good faith to determine the fair market value (on a
going concern basis) of the Company and the Shares. If the Shareholders cannot
agree on a valuation within 60 days after any Shareholder exercises its rights
under this Section 11.3, then the Company will retain an internationally known
investment banking firm to make an independent valuation of the fair market
value (on a going concern basis) of the Company and the Shares. The fees and
expenses of such investment banking firm will be borne by the Defaulting
Shareholder. The Defaulting Shareholder shall have the right to retain an
internationally known investment banking firm to make an independent
<PAGE>   40
                                                                              35

valuation of the fair market value (on a going concern basis) of the Company and
the Shares. The fees and expenses of such investment banking firm shall be borne
by the Defaulting Shareholder.

                  (c) Each valuation of the Company and Shares pursuant to this
Section 11.3 shall take into account all of the relevant facts and circumstances
related to the Company at that time (including the price a willing buyer would
pay and a willing seller would accept in an arms-length transaction (including a
strategic premium), the number of Shareholders exiting the Company and the
ability of the Company to continue to maintain the System) and shall be
completed within one month after the relevant investment banking firm is
retained.

                  (d) If two investment banking firms are retained pursuant to
paragraph (b) above and the fair market values of the Company and the Shares as
determined by such investment banking firms differ by an amount which is less
than or equal to 20%, the fair market value of the Company and the Shares shall
be the average of such valuations. If the fair market values of the Company and
the Shares as determined by such investment banking firms differ by an amount
which is greater than 20%, such investment banking firms shall select a third
internationally recognized investment banking firm to determine the fair market
value (on a going concern basis) of the Company and the Shares, the fees and
expenses of which will be borne by the Shareholders in accordance with their
respective Interests. If the fair market value of the Company and the Shares as
determined by such third investment banking firm is between the fair market
values determined by the other two investment banking firms, the fair market
value of the Company and the Shares shall be the value determined by such third
investment banking firm. If the fair market value of the Company and the Shares
as determined by such third investment banking firm is greater than or equal to
the higher of the fair market values of the Company and the Shares as determined
by the other two investment banking firms or is less than or equal to the lower
of the fair market values of the Company and the Shares as determined by such
other investment banking firms, the fair market value of the Company and the
Shares shall be the average of the valuations of all three investment banking
firms.

                  Section 11.4 Other Remedies. The rights of the Shareholders
pursuant to this Article XI shall not be exclusive, but shall be in addition to
any other rights or remedies available to any of the Shareholders at law or in
equity.

                             ARTICLE XII - DEADLOCK

                  Section 12.1 Deadlock. If at any time there is a dispute or
disagreement which results in a Deadlock (as defined below), any Director or
Shareholder may notify each other Director or Shareholder (as the case may be)
that a Deadlock has occurred (a "Deadlock Notice"). Each Shareholder agrees that
upon delivery or receipt of a Deadlock Notice, it will use all reasonable
efforts to resolve such Deadlock within 60 days of the date of the Deadlock
Notice. If such Deadlock is not resolved within such 60 day period, then any
Shareholder may, by notice to the other Shareholders (the "Triggering Notice"),
initiate a Company Sale procedure pursuant to Section 13.2 below.

                  "Deadlock" means, at any time after three years from the date
hereof, any matter requiring the approval of 75% of the Directors or
Shareholders shall not have been approved by 75% of the Directors or
Shareholders but shall have been approved by at least 50% of the Directors or
Shareholders.
<PAGE>   41
                                                                              36

                   ARTICLE XIII - TERMINATION AND DISSOLUTION

                  Section 13.1 Termination. This Agreement shall terminate and
the Company shall be liquidated upon the occurrence of any of the following
events (each a "Termination Event"):

                  (a) the Non-Defaulting Shareholders shall deliver a
         Termination Notice pursuant to Section 11.2;

                  (b) by final, nonappealable court or other governmental order;
         or

                  (c) by unanimous vote of the Shareholders.

                  Section 13.2 Winding-up. (a) Promptly after the occurrence of
a Termination Event or the delivery of a Triggering Notice, the Shareholders
shall seek to sell all of the issued and outstanding Shares to a buyer or buyers
(which may include a Shareholder or an Affiliate of a Shareholder) in accordance
with the provisions of this Section 13.2 (a "Company Sale"); provided that all
Shares shall be sold to such buyer or buyers at an identical price and on
identical terms.

                  (b) Following the occurrence of a Termination Event or the
delivery of a Triggering Notice, the Company and all Shareholders shall
cooperate in good faith in connection with such Company Sale and use their
reasonable efforts to assist in maximizing the consideration per share of the
Shares received by the Shareholders in such Company Sale. Promptly (and in any
event within 60 days), the Company will retain an internationally recognized
investment banking firm to assist in such Company Sale (the "Auction Bank"). The
Auction Bank will then conduct an auction in a commercially reasonable fashion
among potential purchasers identified by the Auction Bank, the Company and the
Shareholders, and will be instructed to obtain definitive bids for the Company
as soon as practical (and in any event within 180 days after it is retained by
the Company), which bids will be required to be for all of the outstanding
Shares and for consideration consisting entirely of cash. Following the
conclusion of the auction, the Company and the Shareholders will use their
reasonable best efforts to negotiate a Company Sale at the highest cash price
per Share that was offered (and to the party that made such offer) unless the
Board of Directors, by the affirmative vote of at least 75% of the Directors
determines that another offer (an "Alternative Offer") is in the best interests
of the Shareholders, in which case the Company and the Shareholders will use
their reasonable best efforts to negotiate a Company Sale to the party making
the Alternative Offer at the price specified in such Alternative Offer. Each
Shareholder shall sell to such purchaser all Shares then held by such
Shareholder on the terms and conditions contained in the definitive agreements
negotiated with such purchaser, and such sale shall be effected within 90 days
following identification of such purchaser by the Auction Bank, provided that
the consummation of such purchase and sale with respect to all Shareholders
shall be delayed to the extent necessary to comply with any regulatory filings
or other regulatory requirements applicable to the sale by any Shareholder.

                  (c) No sale of Shares may be triggered under this Section 13.2
unless the purchaser has agreed to purchase all of the then issued and
outstanding Shares and no Shareholder shall be required to sell less than all of
such Shareholder's Shares.
<PAGE>   42
                                                                              37

                           ARTICLE XIV - MISCELLANEOUS

                  Section 14.1 After-Acquired Shares. All of the provisions of
this Agreement shall apply to (i) all Shares now owned or which may be
Transferred hereafter to, or owned by, any Shareholder, and (ii) all securities
and instruments (A) received by a Shareholder as a dividend on or other payment
made to holders of Shares, or (B) issued in connection with a split of Shares or
as a result of any exchange for or reclassification of Shares or a
reorganization, recapitalization, consolidation or merger.

                  Section 14.2 Rights of Transferees; Requirement to Become a
Party. If a Shareholder transfers any or all of its Shares to any Permitted
Transferee or other Person in compliance with this Agreement, such transferee
shall have the same rights hereunder as are given to, and shall be subject to
the same obligations as are imposed upon the Shareholder by the terms hereof
with respect to the Shares that are the subject of the Transfer. No Transfer
shall be in compliance with this Agreement or effective unless the transferee,
prior to such Transfer, agrees in writing to be bound by the terms of this
Agreement and to become a "Shareholder."

                  Section 14.3 Owner of Shares. The person in whose name Shares
are registered in the Register may be treated as the owner thereof for all
purposes, including without limitation, for the giving of notices under this
Agreement.

                  Section 14.4 Effect of Ceasing to Own an Interest in the
Company. If any Shareholder ceases to own any interest in the Company, such
Shareholder shall forthwith cease to be a party to this Agreement or a
Shareholder (without prejudice to any rights or obligations then existing or
accruing and on the basis that such Shareholder's obligations under Article X
shall continue to apply) and this Agreement shall be construed accordingly.

                  Section 14.5 Conflict of Terms. In the event that the terms of
this Agreement and the terms of any of the Company's Bye-Laws or Memorandum of
Association differ, the Shareholders shall take, and shall cause the Company and
its Board of Directors to take, such steps as are necessary to amend the
applicable Company's Bye-Laws or Memorandum of Association to reflect the terms
of this Agreement, so far as permitted by law. Until such time as the Bye-Laws
have been amended to reflect the terms of this Agreement, the terms of this
Agreement shall prevail as between the Shareholders, so far as permitted by law.
If any such amendment is not permitted by law, the applicable Company's Bye-Laws
or Memorandum of Association shall prevail.

                  Section 14.6 Legend. So long as the provisions of this
Agreement remain in effect, all certificates evidencing Shares issued after the
date hereof shall be endorsed with the following legend:

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                  ANY STATE SECURITIES LAWS, AND THE SALE OR OTHER TRANSFER
                  THEREOF, OR ANY INTEREST THEREIN, MAY BE MADE ONLY IN A
<PAGE>   43
                                                                              38

                  TRANSACTION NOT SUBJECT TO, OR PURSUANT TO AN EXEMPTION FROM,
                  THE REGISTRATION REQUIREMENTS OF SUCH ACT. THE SALE, TRANSFER,
                  PLEDGE OR OTHER ENCUMBRANCE OF DISPOSITION OF THE SECURITIES
                  REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO AND RESTRICTED
                  BY A SECOND AMENDED AND RESTATED SHAREHOLDERS AGREEMENT DATED
                  AS OF MARCH 24, 2000, AS IT MAY BE AMENDED FROM TIME TO TIME
                  IN ACCORDANCE WITH THE PROVISIONS THEREOF (THE "AGREEMENT"),
                  WHICH CONTAINS RESTRICTIONS ON TRANSFER, RIGHTS OF FIRST
                  REFUSAL, TAG-ALONG AND DRAG-ALONG PROVISIONS. COPIES OF THE
                  AGREEMENT MAY BE OBTAINED FROM THE SECRETARY OF THE COMPANY.

                  The Shareholders acknowledge that the Common Shares
outstanding as of the date hereof are endorsed with the legend referred to
above, except that reference is made to the Original Shareholders Agreement, as
amended, rather than this Second Amended and Restated Shareholders Agreement.

                  Section 14.7 Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
air courier or facsimile transmission to the persons and addresses set forth on
Schedule 3 hereto. All such notices and communications shall be deemed to have
been duly given: when delivered by hand, if personally delivered; three business
days after being timely dispatched delivery prepaid, if by air courier; and when
receipt acknowledged, if sent by facsimile transmission. Any of the above
addresses may be changed by notice made in accordance with this subsection.

                  Section 14.8 Applicable Law; Forum Selection. This Agreement
is governed by and shall be construed in accordance with the laws of the State
of New York (except to the extent the laws of Bermuda are mandatorily
applicable).

                  Section 14.9 Arbitration. The Shareholders agree that any
dispute arising out of or in connection with this Agreement or the transactions
contemplated hereby shall be submitted to arbitration. The Shareholders shall
negotiate in good faith and use all reasonable efforts to agree upon a
resolution of any dispute after receipt of written notice of such dispute from a
Shareholder. If the Shareholders cannot agree on an amicable settlement within
60 days from written submission of the matter by one Shareholder to another, the
matter shall be submitted to arbitration. The Shareholder invoking arbitration
shall select one arbitrator, the other Shareholder shall appoint one arbitrator,
and the two arbitrators so appointed shall select a third arbitrator. In the
event such arbitrators cannot agree upon a third arbitrator, a third arbitrator
shall be selected in accordance with the rules as then in effect of the American
Arbitration Association. The decision of two of the three arbitrators so
appointed as to the validity of any claim shall be conclusive and binding upon
the parties to this Agreement. Any such arbitration shall be held in New York,
New York under the international rules as then in effect of the American
Arbitration Association; provided that the arbitrators shall not have the powers
of amiable compfiteur or ex aequo et bono. The parties hereto intend that this
Agreement and any interpretation,
<PAGE>   44
                                                                              39

construction or enforcement hereof by the arbitrators will be governed by the
specific terms of this Agreement. The official language of any such arbitration
will be English. Each party to any such arbitration shall pay its own expenses;
provided that the fees, costs and expenses of the third arbitrator shall be
borne equally by the Shareholder invoking arbitration, on the one hand, and the
other Shareholders, on the other hand.

                  Section 14.10 Amendment. No amendment, modification, waiver,
change or addition hereto shall be effective or binding on any party hereto
unless the same is in writing and signed by each of the parties hereto.

                  Section 14.11 Assignment. The provisions of this Agreement
shall be binding upon and shall inure to the benefit of the Shareholders and
their respective heirs, successors and permitted assigns. No transfer or
assignment of this Agreement shall be permitted unless the conditions set forth
in Article VII are satisfied.

                  Section 14.12 Expenses. Except as set forth in the
Construction Budget, each of the Shareholders shall be responsible for and pay
all expenses, costs and fees incurred or assumed by such Shareholder in
connection with the preparation, negotiation and execution of this Agreement,
compliance herewith and the consummation or the transactions contemplated
hereby.

                  Section 14.13 Specific Enforcement. Each of the parties hereto
acknowledges and agrees that (a) monetary damages would be an inadequate remedy
for a breach of any of the provisions of this Agreement, (b) in addition to
being entitled to exercise all of their rights granted by law, including
recovery of damages, the other parties shall therefore be entitled to specific
performance of its rights under this Agreement and (c) in the event of any
action for specific performance it shall waive the defense that a remedy at law
would be adequate.

                  Section 14.14 Headings. The headings of this Agreement are for
reference only and shall not be deemed to form part of the text.

                  Section 14.15 Entire Agreement. This Agreement and the other
documents or instruments referred to herein when delivered, or required to be
delivered in connection herewith, constitute the entire agreement among the
Shareholders and supersede all prior agreements and undertakings, oral or
written, among them or between any of them with respect to the subject matter
hereof.

                  Section 14.16 Waivers. Any waiver, express or implied, by any
Shareholder of any right hereunder or of any failure to perform or breach hereof
by any other Shareholder shall not constitute or be deemed a waiver of any other
right hereunder or of any other failure to perform or breach hereof by any
Shareholder, whether of a similar or dissimilar nature, unless the same is in
writing and signed by each Shareholder.

                  Section 14.17 Severability. The invalidity or unenforceability
of any provision of this Agreement shall not affect the validity or
enforceability of its other provisions. Following the determination that any
provision of this Agreement is unenforceable, the Shareholders shall negotiate
<PAGE>   45
                                                                              40

in good faith a new provision that, as far as legally possible, most nearly
reflects the intent of the Shareholders and that restores this Agreement as
nearly as possible to its original intent and effect.

                  Section 14.18 No Third Party Beneficiaries. This Agreement is
solely for the benefit of the Shareholders and the Company, and their respective
successors and permitted assigns, and this Agreement shall not otherwise be
deemed to confer upon or give to any other third party any right, claim, cause
of action, or other interest herein.

                  Section 14.19 Public Statements. The parties shall consult
with each other prior to issuing any public announcement or statement with
respect to this Agreement or the transaction contemplated hereby.

                  Section 14.20 $. All references to "$" mean United States
dollars.

                  Section 14.21 Execution in Counterparts. This Agreement may be
executed in one or more counterparts and by one or more parties to any
counterpart, each of which shall be deemed an original and all of which together
shall constitute one and the same agreement.
<PAGE>   46
                                                                              41

                  IN WITNESS WHEREOF, the Shareholders have entered into this
Agreement as of the day and year first above written.

                                        GCT PACIFIC HOLDINGS, LTD.

                                        By: /s/ K. EUGENE SHUTLER
                                           -------------------------------------
                                           Name: K. Eugene Shutler
                                           Title: President

                                        SCS (BERMUDA) LTD.

                                        By: /s/ MICHIO KURODA
                                           -------------------------------------
                                           Name: Michio Kuroda
                                           Title: E.V.P.

                                        MARUBENI PACIFIC CABLE LIMITED

                                        By: /s/ OSARU OKUBO
                                           -------------------------------------
                                           Name: Osaru Okubo
                                           Title:

                                        PACIFIC CROSSING LTD.

                                        By: /s/ K. EUGENE SHUTLER
                                           -------------------------------------
                                           Name: K. Eugene Shutler
                                           Title: Director

<PAGE>   47
                                                                            42

IN WITNESS whereof this Agreement has been executed the date first above
written.

SIGNED by Susan Chow                        )
for and on behalf of                        )
HUTCHISON TELECOMMUNICATIONS                )    /s/ Susan Chow
LIMITED                                     )
in the presence of-                         )

SIGNED by Susan Chow                        )
for and on behalf of                        )
HUTCHISON WHAMPOA LIMITED                   )    /s/ Susan Chow
in the presence of-                         )

SIGNED by Lorraine Dean                     )
for and on behalf of                        )
GLOBAL CROSSING HOLDINGS LTD.               )    /s/ Lorraine Dean
in the presence of-                         )

SIGNED by James C. Gordon                   )
for and on behalf of                        )
GLOBAL CROSSING LTD.                        )    /s/ James C. Gordon
in the presence of- Justin J. O'Neill       )

SIGNED by Aenti Nardi                       )
for and on behalf of                        )
NCL HOLDINGS LIMITED                        )    /s/ Aenti Nardi
in the presence of-                         )

<PAGE>   48
                                                                   Schedule 1 to
                                                          Shareholders Agreement

                             SUBSCRIPTION OF SHARES

<TABLE>
<CAPTION>
Shareholder            Number of Shares              Percentage Interest                Total Purchase Price
-----------            ----------------              -------------------                --------------------
<S>                    <C>                           <C>                                <C>
 GCT                        600,000                           50%                             $6,000.00
 SCS                        174,000                           14.5%                           $1,740.00
 Marubeni                   426,000                           35.5%                           $4,260.00
</TABLE>
<PAGE>   49
                                                                   Schedule 2 to
                                                          Shareholders Agreement

                               CAPITAL COMMITMENTS

<TABLE>
<CAPTION>
                  Shareholder                                 Capital Commitment
                  -----------                                 ------------------
<S>                                                           <C>
                      GCT                                            $200,000,000

                      SCS                                             $58,000,000

                   Marubeni                                          $142,000,000
</TABLE>
<PAGE>   50
                                                                   Schedule 3 to
                                                          Shareholders Agreement

                              ADDRESSES FOR NOTICES

         GCT               GCT  Pacific Holdings, Ltd.
                           Wessex House, 45 Reid Street
                           Hamilton, HM EX, Bermuda

                           Tel:  (441)  296-8600
                           Fax:  (441)  296-8606

         SCS               SCS (Bermuda) Ltd.
                           Cedar House
                           41 Cedar Avenue
                           Hamilton HM12 Bermuda
                           Tel:  (441) 295-2244
                           Fax:  (441) 292-8666

         Marubeni          Marubeni Pacific Cable Limited
                           c/o Marubeni America Corporation
                           450 Lexington Avenue
                           New York, NY 10017
                           Tel:  (212) 450-4000
                           Fax:  (212) 450-4800
<PAGE>   51
                                                                       Exhibit A

                                    BYE-LAWS

                                       AND

                            MEMORANDUM OF ASSOCIATION<PAGE>   1
                                                                    Exhibit 10.3

                             DATED JANUARY 12, 2000

                    (1) HUTCHISON TELECOMMUNICATIONS LIMITED

                           (2) HUTCHISON WHAMPOA LTD.

                            (3) GLOBAL CROSSING LTD.

                        (4) GLOBAL CROSSING HOLDINGS LTD.

                            (5) HCL HOLDINGS LIMITED

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

                             SHAREHOLDERS AGREEMENT

                                   RELATING TO

                              HCL HOLDINGS LIMITED

                            -------------------------
<PAGE>   2
                                      INDEX

<TABLE>
<CAPTION>
                                                                                                                   PAGE
                                                                                                                   ----
<S>      <C>                                                                                                       <C>
1.       DEFINITIONS AND INTERPRETATION..........................................................................    2
2.       THE COMPANY AND HCL.....................................................................................    9
3.       ARTICLES OF ASSOCIATION.................................................................................   13
4.       BUSINESS OF THE HCL GROUP...............................................................................   13
5.       DIRECTORS...............................................................................................   16
6.       SHAREHOLDERS MEETINGS...................................................................................   20
7.       DEADLOCK................................................................................................   21
8.       ACCOUNTS AND INFORMATION TO SHAREHOLDERS................................................................   22
9.       BUSINESS PLAN; OPERATING BUDGET.........................................................................   23
10.      EMPLOYMENT POLICIES.....................................................................................   25
11.      TRANSFER OF SHARES AND SHAREHOLDERS LOANS...............................................................   25
12.      INTENTIONALLY DELETED...................................................................................   27
13.      GUARANTEE...............................................................................................   27
14.      CONFIDENTIALITY.........................................................................................   29
15.      NON COMPETITION AND OTHER OBLIGATIONS...................................................................   29
16.      PROTECTION OF NAME......................................................................................   35
17.      TERMINATION.............................................................................................   35
18.      MISCELLANEOUS...........................................................................................   36
19.      NOTICE..................................................................................................   38
20.      TAXES...................................................................................................   39
21.      AGENT FOR SERVICE.......................................................................................   42
22.      EFFECTIVE DATE..........................................................................................   43
</TABLE>

SCHEDULE

SCHEDULE 1A - A GROUP SERVICES
SCHEDULE 1B - B GROUP SERVICES
SCHEDULE 2 - NON-COMPETE EXCEPTIONS
SCHEDULE 3 - RESERVED MATTERS
SCHEDULE 4 - DEED OF ADHERENCE
SCHEDULE 5 - ARBITRATION
<PAGE>   3
                             SHAREHOLDERS AGREEMENT

THIS SHAREHOLDERS AGREEMENTS is made on the 12th day of January, 2000

BETWEEN

         (1) HUTCHISON TELECOMMUNICATIONS LIMITED, a company incorporated in
Hong Kong and having its registered office at 22nd Floor, Hutchison House, 10
Harcourt Road, Hong Kong ("Party A");

         (2) HUTCHISON WHAMPOA LIMITED, a company incorporated in Hong Kong with
its registered office at 22nd Floor, Hutchison House, 10 Harcourt Road, Hong
Kong ("Principal Party A");

         (3) GLOBAL CROSSING HOLDINGS LTD., a company incorporated in Bermuda
with its registered office at Wessex Hour, 45 Reid Street, Hamilton, HM12,
Bermuda ("Party B");

         (4) GLOBAL CROSSING LTD., a company incorporated in Bermuda with its
registered office at Wessex House, 45 Reid Street, Hamilton, HM12, Bermuda
("Principal Party B"); and

         (5) HCL HOLDINGS LIMITED, a company incorporated in the British Virgin
Islands with its registered office at the offices of Trident Trust Company
(B.V.I.) Limited, P.O. Box 146, Road Town, Tortola, British Virgin Islands (the
"Company").

WHEREAS,

(A)      The Company is a company incorporated in the British Virgin Islands
         with registered number 69098 and as at the date hereof has an
         authorised capital of US$50,000 divided into 50,000 shares of US$1
         each, 320 of such shares have been issued and are fully paid and are
         beneficially owned by Party A and by Party B as to 160 shares each.

(B)      Hutchison Communications Limited ("HCL") is a company incorporated in
         Hong Kong with registered number 385946 and as at the date hereof has
         an authorised capital of HK$10,000 divided into 1,000 ordinary shares
         of HK$10 each. Two of such shares have been issued and are fully paid
         up and are all beneficially owned by the Company.

(C)      The Company's Subsidiaries provide fixed telecommunication network and
         multimedia services in Hong Kong.

(D)      The parties hereto have agreed to enter into this Agreement to provide
         for the ownership, management, financing and other activities of the
         Company and its Subsidiaries and their rights and duties inter se.
<PAGE>   4
                                                                               2

NOW IT IS HEREBY AGREED as follows:

1.       DEFINITIONS AND INTERPRETATION

1.1      In this Agreement, unless the context otherwise requires, the following
         expressions shall have the following meanings respectively:

         "A Group" means Principal Party A and its Subsidiaries and Affiliates
         from time to time but unless otherwise expressly stated does not
         include any member of the HCL Group.

         "A Group Services" means the Telecommunications services provided in
         Hong Kong as set forth in Schedule 1A, as supplemented from time to
         time in accordance with Clause 2.12.

         "AGCH" means Asia Global Crossing Holdings Ltd., a company incorporated
         in Bermuda.

         "Agreement" means this Shareholders Agreement including its recitals
         and schedules, as it may be amended and/or supplemented from time to
         time.

         "Affiliate" means, as to any Person, (a) any corporation more than 20%
         of whose stock of any class or classes having by the terms thereof
         ordinary voting power (including the right to vote on appointment of
         directors) is at the time directly or indirectly owned by such Person
         and/or one or more Subsidiaries of such Person and (b) any partnership,
         association, joint venture or other entity in which such Person and/or
         one or more Subsidiaries of such Person have more than 20% direct or
         indirect equity interests therein, in each case, other than a
         Subsidiary of such Person.

         "Articles" means the articles of association of the Company as amended
         from time to time and for the time being in force.

         "B Group" means Principal Party B and its Subsidiaries and its
         Affiliates from time to time but unless otherwise expressly stated does
         not include any member of the HCL Group.

         "B Group Services" means the services set forth in Schedule 1B, as
         supplemented from time to time in accordance with Clause 2.12.

         "Board" means the board of Directors of the Company from time to time.

         "Business" means the board of Directors of the Company from time to
         time.

         "Business" means the provision of

                  (a)      HK Fixed Services;

                  (b)      Internet Access and Transport Services in Hong Kong;
<PAGE>   5
                                                                               3

                  (c)      PRC Fixed Services;

                  (d)      Internet Access and Transport Services in the PRC;
                           and

                  (e)      Internet Enablement Services in Hong Kong.

         "Business Days" means any day on which banks in Hong Kong, New York and
         Los Angeles are officially open for business generally, except a
         Saturday or a Sunday.

         "Business Plan" means the business plan and operating budget of the HCL
         Group as referred to in Clause 9.

         "Capacity" means

                  (a)      in the case of the HCL Group, backhaul, capacity, and
                           leased circuit services on the terrestrial networks
                           in Hong Kong and the PRC owned by the HCL Group or
                           with respect to which the HCL Group has the right to
                           set the price and other terms; and

                  (b)      in the case of the B Group, wholesale international
                           cable capacity owned by the B Group or with respect
                           to which the B Group has the right to set the price
                           and other terms.

         "CK" means Cheung Kong Holdings Limited.

         "Companies Ordinance" means the Companies Ordinance (Chap. 32) of the
         Laws of Hong Kong.

         "Content and Portal Distribution" means the provision of information,
         entertainment and other content on the Internet and services associated
         therewith including, for example, development, establishment and supply
         of portal sites, provision of search engines and other software
         development for content provisioning on the Internet.

         "Director(s)" means the director(s) of the Company from time to time.

         "E-Commerce" means the sale of goods and services on the Internet.

         "Fundamental Breach" means any breach of any obligation hereunder the
         commission of which would entitle of non-breaching party to terminate
         this Agreement at law (ignoring for that purpose any contrary provision
         in this Agreement).

         "FTNS Licence" means any fixed telecommunications network services
         licence issued under the Telecommunication Ordinance held from time to
         time by the HCL Group and includes:

                  (a)      any successor licence or licence replacing or
                           modifying the said fixed telecommunications network
                           service licence; and
<PAGE>   6
                                                                               4

                  (b)      all authorisations and licences issued pursuant to
                           the said fixed telecommunications network service
                           licence or incidental thereto.

         "Global Crossing Network" means:

                  (a)      those submarine and terrestrial cable systems
                           referred to in the Network Agreement; and

                  (b)      submarine and terrestrial cable systems (other than
                           terrestrial cable systems in the PRC and Hong Kong)
                           owned by any one or members of the B Group from time
                           to time or with respect to which any one or more
                           members of the B Group has the right to set the price
                           and other terms for the related capacity.

         "Group Services" means the collective reference to A Group Services and
         B Group Services.

         "HCL Group" means the Company and its Subsidiaries from time to time.

         "Hong Kong" means the Hong Kong Special Administrative Region of the
         PRC.

         "HK Fixed Services" means the provision of wireline or wireless means
         of Telecommunications services between fixed points in Hong Kong or
         between one or more fixed points in Hong Kong and one or more fixed
         points outside Hong Kong including the provision of services,
         establishment and maintenance of networks (whether owned or leased) and
         facilities and other activities from time to time authorised under
         HCL's FTNS Licence, but does not include Satellite Based Services. For
         the avoidance of doubt, HK Fixed Services includes the following to the
         extent so authorised under HCL's FTNS Licence:

                  (a)      facilitating the establishment of submarine cable
                           landing stations in Hong Kong as permitted by Clause
                           4.8; and

                  (b)      without limiting the definition of Satellite Based
                           Services set out below, subject to the approval of
                           the Board in accordance with Clause 4.9, the
                           establishment and use of satellite earth stations and
                           the leasing of satellite capacity as part of the
                           network established under HCL's FTNS Licence for the
                           provision of services between fixed points.

         "Intellectual Property" means all intellectual property rights, to the
         extent acquired by or developed by or vested in the Company and/or its
         Subsidiaries or their respective employees in the course of their
         conducting the Business, including but not limited to the following
         rights:

                  (a)      patents, copyrights, registered designs, trade marks,
                           service marks, know how, discoveries, processes,
                           computer software and programs, codes and related
                           items, invention disclosures and related improvements
                           and any
<PAGE>   7
                                                                               5

                           right of the Company to have confidential information
                           kept confidential; and

                  (b)      any application or right to apply for registration of
                           any of the rights referred to in paragraph (a).

         "Internet Access and Transport Services" means the establishment,
         maintenance or provision of Internet access facilities or services or
         the provision of capacity for accessing and transporting communications
         on the Internet on a wholesale or retail basis. Internet Access and
         Transport Services includes, without limitation, Internet Protocol
         ("IP") transit services.

         "Internet Advertising" means advertising on the Internet and services
         relating thereto.

         "Internet Enablement Services" means Internet facilities management
         (including network management services and system security monitoring
         services), web hosting and associated web design, equipment collocation
         and hosting, application hosting (whether the application is
         proprietary or belongs to the customer) and data storage, back-up and
         recovery services.

         "Mobile Operator" means any person who holds a licence to provide
         Mobile Services in Hong Kong.

         "Mobile Services" means providing and maintaining a public
         radio-telephone service (other than services provided pursuant to an
         FTNS License) and the sales and/or lease of subscriber equipment
         (mobile and portable radio telephone equipment and related
         accessories).

         "Network Agreement" means the Global Crossing Network Agreement, dated
         as of the date hereof, among the Company, Principal Party B and its
         Affiliate, as amended, supplemented or otherwise modified from time to
         time.

         "Paging Services" means paging and ancillary services, including
         services of a type which were authorised under the Public Radio
         Communications Services licenses.

         "Person" means any individual, partnership, joint venture, corporation,
         limited liability company, limited duration company, limited life
         company, association, trust or other enterprise or a government,
         including an agency thereof.

         "PRC" means the People's Republic of China, including Macau, but
         excluding Hong Kong, and for the avoidance of doubt does not include
         Taiwan.

         "PRC Fixed Services" means the provision by wireline or wireless means
         of Telecommunications services between Fixed points in the PRC or
         between one or more fixed points in the PRC and one or more fixed
         points outside the PRC but does not include Satellite Based Services.
         For the avoidance of doubt, PRC Fixed Services includes the following:
<PAGE>   8
                                                                               6

                  (a)      facilitating the establishment of submarine cable
                           landing stations in Hong Kong as permitted by Clause
                           4.8; and

                  (b)      without limiting the definition of Satellite Based
                           Services set out below, subject to the approval of
                           the Board in accordance with Clause 4.9, the
                           establishment and use of satellite earth stations and
                           the leasing of satellite capacity as part of the
                           network established for the provision of services
                           between fixed points as aforesaid.

         "Principal Parties" means Principal Party A and Principal Party B.

         "Relevant Agreements" has the meaning assigned to that term in the Sale
         and Purchase Agreement.

         "Relevant Shareholder" means:

                  (a)      in respect of Principal Party A, Party A and any
                           person for whose obligations Principal Party A is
                           liable under Clause 11.4;

                  (b)      in respect of Principal Party B,

                           (i)      Party b and any person for whose obligations
                                    Principal Party B is liable under Clause
                                    11.4; or

                           (ii)     if Shares are owned by AGCH or one of its
                                    wholly owned Subsidiaries in accordance with
                                    Clause 11.2, AGCH or such wholly owned
                                    Subsidiary for so long as such person owns
                                    Shares; or

                           (iii)    if Shares are owned by the Interim Entity
                                    prior to the Interim Entity becoming a
                                    wholly owned subsidiary of AGCH or a
                                    transfer of Shares to AGCH pursuant to
                                    Clause 1.6A, the Interim Entity for so long
                                    as the Interim Entity owns Shares.

         "Sale and Purchase Agreement" means a subscription and sale and
         purchase agreement between the parties dated 15 November, 1999, as
         amended, supplemented or otherwise modified from time to time.

         "Satellite Based Services" means Telecommunications services provided
         by satellite (other than services provided pursuant to a FTNS Licence)
         including, without limitation, the ownership and operation of
         satellites, television broadcasting and similar services provided by
         satellite, VSAT services and services provided through global satellite
         systems and global positioning services, and the establishment and
         maintenance of facilities relating to any of the foregoing and services
         ancillary thereto.

         "Shareholder(s)" means holder(s) of Share(s) from time to time.
<PAGE>   9
                                                                               7

         "Shareholders Loan(s)" means loan(s) made or to be made to the Company
         by the Shareholders (or where the context so requires, by a particular
         Shareholder) or, where the context so requires, the outstanding amount
         thereof.

         "Share(s)" means the issued share(s) in the capital of the Company from
         time to time.

         "Subsidiary" means, as to any Person, (a) any corporation more than 50%
         of whose stock of any class or classes having by terms thereof ordinary
         voting power to elect a majority of the directors of such corporation
         is at the time owned by such Person and/or one or more Subsidiaries of
         such Person and (b) any partnership, association, joint venture or
         other entity in which such Person and/or one or more Subsidiaries of
         such Person have more than 50% equity interests therein provided that,
         whether or not falling within paragraphs (a) and (b) of this
         definition, (I) the Interim Entity shall be deemed to be a Subsidiary
         of Principal Party B for so long as the Interim Entity owns any Shares
         and is not a Subsidiary of AGCH as a result of becoming a wholly owned
         subsidiary of AGCH under Clause 1.6A; and (II) without limiting the
         foregoing, AGCH and its Subsidiaries (as defined in paragraph (a) and
         (b) above) shall be deemed to be Subsidiaries of Principal Party B for
         so long as AGCH or any of AGCH's Subsidiaries owns any Shares (and, if
         AGCH or its Subsidiary disposes of its Shares after the restrictions on
         transfer of Shares under this Agreement are removed pursuant to Clause
         11.2(a), AGCH and its Subsidiaries shall be deemed to continue to be
         Subsidiaries of Principal Party B from the date of such disposal until
         the date this Agreement terminates under Clause 11.2).

         "Telecommunication Ordinance" means the Telecommunication Ordinance,
         Chapter 106 of the Laws of Hong Kong.

         "Telecommunications" includes any communication by wire or radio waves
         or any other electromagnetic means or by any combination thereof:

                  (a)      whether between persons and persons, things and
                           things or persons and things; and

                  (b)      whether in the form of speech, music or other sounds;
                           and

                  (c)      whether in the form of data, text, visual images
                           (animated, moving or otherwise), signals or any other
                           form; and

                  (d)      whether in any combination of forms.

         "HKS" means Hong Kong dollars, the lawful currency of Hong Kong.

         "US$" means United States dollars, the lawful currency of the United
         States of America.

1.2      Reference herein to Clauses, paragraphs, Recitals and Schedules are to
         clauses, paragraphs and recitals of and schedules to this Agreement
         unless the context requires otherwise and the Recitals and the
         Schedules shall form part of this Agreement.
<PAGE>   10
                                                                               8

1.3      References to any statute or statutory provisions shall include any
         statute or statutory provision which amends or replaces, or has amended
         or replaced it and shall include any subordinate legislation made under
         the relevant statute.

1.4      References to writing shall include typewriting, printing, lithography,
         photography and facsimile message and other modes of reproducing words
         in a legible and non-transitory form.

1.5      Words importing the singular include the plural and vice versa, words
         importing a gender include every gender and references to any person
         shall include references to an individual, firm, or body corporate or
         unincorporate.

1.6      Headings are for convenience of reference only and shall not affect the
         construction of this Agreement.

1.6A     Transfer to the Interim Entity

         The parties acknowledge that in order for Party B or one of its
         Subsidiaries to transfer its Shares to AGCH (or one of AGCH's direct or
         indirect wholly owned Subsidiaries) pursuant to Clause 11.2, Party B
         may chose to temporarily transfer all of the Shares held by Party B to
         an entity which is owned by the shareholders of AGCH in the same
         proportion as their interests in AGCH and in which Principal Party B
         owns legally and beneficially at least 51% of the outstanding voting
         stock (the "Interim Entity") provided that:

         (a)      Principal Party B shall cause all of the Shares held by the
                  Interim Entity or all of the issued stock of the Interim
                  Entity to be promptly transferred to AGCH but in any event no
                  later than 90 days after the date of transfer to the Interim
                  Entity and, at all times prior to such transfer to AGCH,
                  Principal Party B shall own at least 51% of the voting shares
                  of the Interim Entity; and

         (b)      At all times the Interim Entity owns Shares, it shall comply
                  with all of the obligations imposed on a Shareholder under
                  this Agreement.

         Party B shall at the time of such transfer to the Interim Entity,
         provide written notice to Principal Party A of such transfer and, if
         requested by Party A, an officer's certificate certifying as to its
         ownership interest in the Interim Entity and warrants such certificate
         shall be accurate.

1.7      The expressions "Party A", "Party B", "Principal Party A", "Principal
         Party B", "Shareholder(s)" and "the Company" shall, where the context
         permits, include their respective successors and permitted assigns.

1.8      Any obligation of a party to procure or cause an Affiliate to take any
         action whatsoever shall be limited to an obligation to use reasonable
         commercial endeavours to secure that the Affiliate undertakes that
         action.
<PAGE>   11
                                                                               9

2.       THE COMPANY AND HCL

2.1      The Company

         (a)      The Company is and shall be an international business company
                  incorporated under the laws of the British Virgin Islands.

         (b)      The registered office of the Company is and shall be at the
                  address set out above.

2.2      HCL

         (a)      HCL is and shall be a private company limited by shares
                  incorporated under the Companies Ordinance.

         (b)      The registered office of HCL shall be as agreed by the parties
                  from time to time.

2.3      Change of Name

         Each of the Shareholders hereby agrees and undertakes to procure that
         the name of the Company and HCL shall be changed to "Hutchison Global
         Crossing Holdings Limited" and "Hutchison Global Crossing Limited"
         respectively as soon as practicable after the execution of this
         Agreement.

2.4      Full Effect

         Each of the Shareholders shall, and shall procure all persons nominated
         by it on the board or the board of directors of any Subsidiaries of the
         Company and representative(s) appointed to attend shareholders' meeting
         of the Company or any of its Subsidiaries to, exercise all voting
         rights and powers of control available to it in relation to the Company
         and its Subsidiaries so as to give full effect to the terms and
         conditions of this Agreement.

2.5      Listing

         Upon written request to the Company made at any time after the second
         anniversary of the date of this Agreement, either Principal Party A or
         Principal Party B may demand that the Company undertake a listing of
         not more than 15% of any of the Shares or the shares in the capital of
         HCL or the shares of a holding company of the Company or HCL formed for
         the purpose of seeking such listing (the "Listing Shares") in each case
         on an internationally recognised stock exchange or other international
         recognised securities market by means of an initial public offering
         (the "Initial Public Offering") of the Listing Shares. If either
         Principal Party A or Principal Party B makes such a demand, the parties
         shall fully cooperate with each other in the marketing of the Listing
         Shares and shall be unconditionally obliged to each take all actions
         necessary or desirable to effect the Initial Public Offering. Without
         prejudicing each party's unconditional obligation to effect an Initial
         Public Offering in accordance with the previous sentence, the parties
         agree to cooperate with each other and negotiate in good faith with
         each other to address such
<PAGE>   12
                                                                              10

         amendments to this Agreement and other matters as may reasonably
         necessary to effect the Initial Public Offering. Unless agreed to the
         contrary:

         (c)      the Initial Public Offering shall take place on a Hong Kong
                  stock exchange which is recognised internationally and/or the
                  NASDAQ National Market as may be determined by agreement of
                  the parties (and in attempting to reach agreement the parties
                  will give good faith consideration to the written
                  recommendations of the underwriter to the Initial Public
                  Offering). If the parties do not agree on the exchange or
                  exchanges on which the Initial Public Offering shall take
                  place, the parties agree that the listing shall take place on
                  both a Hong Kong internationally recognised stock exchange and
                  on the NASDAQ National market; the percentage dilution of the
                  A Group and the B Group in the corporation the securities of
                  which are to be listed ("Listing Vehicle") shall be shared
                  equally;

         (d)      fees and expenses of the Initial Public Offering shall be
                  borne by the Listing Vehicle; and

         (e)      the Initial Public Offering shall be of a primary issue of
                  common shares of the Listing Vehicle.

2.5A     The Shareholders agree to co-operate and negotiate in good faith to
         establish a new corporation incorporated in Bermuda within six (6)
         months from the date of this Agreement to be the holding company of the
         HCL Group. Unless otherwise agreed by the Parties, it is anticipated
         that the said corporation shall be the Listing Vehicle for the purpose
         of Clause 2.5. The parties shall negotiate in good faith over the
         necessary amendments to this Agreement in order to include such new
         corporation within the HCL Group and in order to make the terms hereof
         applicable to such new corporation and its Subsidiaries and shall each
         undertake all such acts, and execute all such documents, as may be
         reasonably necessary or desirable to give effect to this Clause.

2.6      A Group Obligation to Use B Group Services

         Principal Party A agrees:

         (a)      to:

                  (i)      procure that Subsidiaries of Principal Party A
                           (excluding Subsidiaries located outside of Hong Kong
                           or the PRC whose shares are publicly traded); and

                  (ii)     use reasonable commercial efforts to procure that its
                           Subsidiaries located outside of Hong Kong or the PRC
                           whose shares are publicly traded and its Affiliates;

                  who require access to B Group Services shall subscribe for
                  such B Group Services from the B Group so long as such B Group
                  Services are reasonably competitive as to price, availability,
                  quality and other terms material to its competitiveness and
<PAGE>   13
                                                                              11

                  provided that with respect to B Group Services not set forth
                  in Schedule 1B as of the date hereof, the B Group has complied
                  with its obligations set forth in Clause 2.12; and

         (b)      for so long as CK is the beneficial owner of at least 40% of
                  the voting shares of Principal Party A, to use its reasonable
                  commercial endeavors to cause CK and such of CK's Subsidiaries
                  located in Hong Kong or the PRC which require B Group Services
                  to obtain such B Group Services from the B Group so long as
                  such B Group Services are reasonably competitive as to price,
                  availability, quality and other terms material to its
                  competitiveness and provided that with respect to B Group
                  Services not set forth in Schedule 1B as of the date hereof,
                  the B Group has complied with its obligations set forth in
                  Clause 2.12;

         provided, in each case that such B Group Services are not otherwise
         provided by any member of the A Group or by the HCL Group.

2.6A     HCL Group Use of B Group Services

         The Company agrees to procure that members of the HCL Group who require
         B Group Services shall, subject to the provisions of Clause 2.9 in the
         case of purchases of Capacity, procure such B Group Services from the B
         Group, so long as such B Group Services are reasonably competitive as
         to price, availability, quality and other terms material to its
         competitiveness and provided that with respect to B Group Services not
         set forth in Schedule 1B as of the date hereof, the B Group has
         complied with its obligations set forth in Clause 2.12.

2.7      B Group Obligation To Use A Group Services

         Subject to Clause 15.8, Principal Party B agrees to procure that
         members of the B Group (other than AGCH and its Subsidiaries if such
         persons are deemed Subsidiaries of Principal Party B solely by
         operation of the provisions contained in the last parenthetical of the
         definition of "Subsidiary") who require A Group services in Hong Kong
         (not otherwise provided by any member of the B Group or by any member
         of the HCL Group) shall procure such services from the A Group, so long
         as such services are reasonably competitive as to price, availability,
         quality and other terms material to its competitiveness and provided
         that with respect to A Group Services not set forth in Schedule 1A as
         of the date hereof, the A Group has complied with its obligations set
         forth in Clause 2.12.

2.8      Access to a Group/CK Properties

         Principal Party A agrees:

         (a)      to provide, and to cause each member of the A Group to
                  provide, HCL and its Subsidiaries with access to properties
                  (including related infrastructure) which from time to time are
                  owned or controlled by any member of the A Group; and
<PAGE>   14
                                                                              12

         (b)      for so long as CK is the beneficial owner of at least 40% of
                  the voting shares of Principal Party A, to use its reasonable
                  commercial endeavours to cause CK and its Subsidiaries to
                  provide HCL and its Subsidiaries with access to properties
                  (including related infrastructure) which from time to time are
                  owned or controlled by CK or its Subsidiaries.

         in each case on a commercially reasonable basis and on terms which are,
         in any event, not worse (from the perspective of the HCL Group) than
         the basis and terms on which access is currently provided to the HCL
         Group.

2.9      Part of B Group Capacity For HCL Group

         Principal Party B shall, and shall cause members of the B Group (other
         than AGCH and its Subsidiaries if such persons are deemed Subsidiaries
         of Principal Party B solely by operation of the provisions contained in
         the last parenthetical of the definition of "Subsidiary") to, provide
         Capacity on the Global Crossing Network to the HCL Group at a price
         equal to the lowest price of any sale on the applicable Global Crossing
         Network during the preceding calendar quarter to a non-affiliated
         entity activating a similar amount of Capacity on the applicable
         system(s) (excluding discounts given in respect of future commitments
         and past purchases unless comparable circumstances apply in the case of
         the proposed purchaser and having regard to timing of commitments,
         purchase and activation) less 5%; provided, however, that in no event
         shall such price be at below cost.

2.10     Price of HCL Group capacity for A Group and B Group

         The HCL Group shall provide Capacity to Principal Party A and Principal
         Party B and their respective Subsidiaries at a price equal to the
         lowest price of any sale on the HCL Group network during the preceding
         calendar quarter to a non-affiliated entity activating similar amount
         and type of Capacity (excluding discounts given in respect of future
         commitments and past purchases unless comparable circumstances apply in
         the case of the proposed purchaser and having regard to timing of
         commitments, purchases and activation) less 5%; provided, however, that
         in no event shall such price be below cost.

2.11     Price of HCL Group Capacity To Third Parties

         Except as otherwise agreed by the Board or as otherwise provided by
         this Agreement (including, without limitation, in Clause 2.10),
         Capacity shall be provided by the HCL Group to third parties at market
         rates.

2.12     Notices of New Group Services

         Each of Principal Party A and Principal Party B respectively shall be
         permitted to supplement its respective Group Services by providing the
         other Principal Party written notice of the services then being offered
         by members of the A Group or the B Group (as the case may require)
         (with respect to members of the A Group, in Hong Kong and with respect
         to members of the B Group, outside of Hong Kong). Unless the Principal
         Parties agree to the contrary, the services set forth in such notice
         shall be deemed included in
<PAGE>   15
                                                                              13

         Schedule 1A or Schedule 1B, as the case may be, at the end of the
         period of thirty (3) days after the date of such notice (the Principal
         Parties to negotiate in good faith over such additional Group Services
         during such period).

3.       ARTICLES OF ASSOCIATION

         In the event of inconsistency between this Agreement and the Articles
         or the articles of association of HCL, this Agreement shall prevail.

4.       BUSINESS OF THE HCL GROUP

4.1      The Business

         The HCL Group shall carry on the Business as its primary areas of
         focus.

4.2      Incidental Activities

         In addition, the HCL Group may also carry on the following activities
         incidental to the Business:

         (a)      the provision of E-Commerce in Hong Kong;

         (b)      the provision of Content and Portal Distribution in Hong Kong;

         (c)      the provision of Internet Advertising in Hong Kong.

         (d)      the establishment and maintenance of facilities and the
                  provision of services reasonably incidental to the Business
                  and to any of the above and/or as may be agreed;

         (e)      the provision of subscriber equipment in connection with the
                  services listed above.

4.3      Excluded

         For the avoidance of doubt, the business of the HCL Group does not
         include:

         (a)      the provision of Mobile Services;

         (b)      the provision of Paging Services and associated facilities; or

         (c)      Satellite Based Services.

4.4      Intentionally Deleted.
<PAGE>   16
                                                                              14

4.5      PRC Business

         (a)      The Shareholders and the Principal Parties acknowledge that
                  PRC Fixed Services and Internet Access and Transport Services
                  in the PRC (together, the "PRC Business") are within the
                  Company's scope of business, and neither Principal Party (and
                  none of their respective Subsidiaries) shall pursue such an
                  opportunity except through the Company and its Subsidiaries,
                  other than as provided in this Clause 4.5 or Clause 15.

         (b)      If either Principal Party or their respective Subsidiaries
                  obtain an opportunity in a PRC Business which such party
                  wishes to pursue (each, a "PRC Opportunity"), such party (the
                  "Offering Party") shall give prompt written notice thereof to
                  the Board. Such notice shall specify the PRC Opportunity in
                  reasonable detail (including the timing of the transaction) so
                  that the Board can reasonably consider the PRC Opportunity.

         (c)      If the HCL Group is not permitted by law, or published policy,
                  regulation or decree to pursue a PRC Opportunity
                  (collectively, "Prohibition"), then the Offering Party shall
                  be permitted, after giving written notice thereof to the Board
                  and the other Principal Party, to pursue such PRC Opportunity
                  (through itself, through its related Principal Party or
                  through one of such related Principal Party's Subsidiaries),
                  provided, however, that:

                  (i)      prior to exercising the rights conferred by the
                           remainder of this Clause based on the view that the
                           HCL Group is not permitted to pursue the PRC
                           Opportunity by virtue of a Prohibition, the Offering
                           Party shall first discuss the problem in good faith
                           with the other Principal Party with a view to
                           attempting to overcome the problem during a
                           reasonable period having regard to any time
                           constraints attached to the opportunity and having
                           regard to whether such Prohibition will cease within
                           a reasonable time period;

                  (ii)     if the discussions in (i) have not resulted in the
                           problem being overcome and the Offering Party still
                           wishes to pursue the Opportunity, the Offering Party
                           shall in that event provide a written offer ("Offer")
                           to the other Principal party (the "Offered Party")
                           for the right to participate in 50% of the PRC
                           Opportunity available to the Offering Party (subject
                           to the Offered Party assuming 50% of the liabilities
                           attached thereto), such Offer to set out the terms of
                           the PRC Opportunity as well as the structure in which
                           the Offered Party and the Offering Party shall
                           participate, in each case in reasonable detail (the
                           "Offering Notice"). The Offered Party shall have a
                           reasonable opportunity to consider such Offer, but
                           shall, in any event, provide the Offering Party a
                           written reply to such offer within 30 days of
                           receiving the Offering Notice ("Offer Period"); and

                  (iii)    should the Offered Party refuse or fail within the
                           Offer Period to accept in writing the Offer, the
                           Offering Party and/or its Subsidiary or Subsidiaries
<PAGE>   17
                                                                              15

                           shall be entitled to undertake the PRC Opportunity.
                           If however the only reason preventing the Offered
                           Party from accepting the Offer is a Prohibition (and
                           the Offered Party notifies the Offering Party thereof
                           in writing within the Offer Period), the Offering
                           Party and the Offered Party shall negotiate in good
                           faith with the other to establish a mechanism through
                           which the other will be put in the same position,
                           including as to risks and returns, as if it had
                           invested directly in such PRC Opportunity; and

                  (iv)     if the Offered Party accepts the Offer within the
                           Offer Period, both parties agree to proceed in
                           accordance with the terms of the Offer.

                  For the avoidance of doubt, the carrying on of businesses by
                  any Shareholder pursuant to this Clause shall not be regarded
                  as a breach of the non-competition provisions contained in
                  Clause 15. Any right to participate under this Clause may be
                  exercised by the Offered Party in its own right or by a
                  Subsidiary of the Offered Party.

4.6      Intellectual Property

         Each of the Shareholders recognises and acknowledges that, as between
         the HCL Group and the Shareholders, the Company is the sole and
         exclusive owner of all of the rights in and to the Intellectual
         Property. The Shareholders agree that no member of the HCL Group shall
         grant a license to any member of the A Group or the B Group with
         respect to any Intellectual Property, except a license in writing that
         is approved by the Board. Each of the Shareholders agrees that neither
         this Agreement nor any of the Shareholder's activities contemplated
         herein shall confer upon any member of the A Group or B Group any
         right, title or interest in or to any of the Intellectual Property or
         any right to use the Intellectual Property except:

         (a)      to the extent licensed in writing to that Shareholder by an
                  HCL Group company;

         (b)      to the extent owned by that member of the A Group or B Group
                  and licensed to the HCL Group company; provided, however, that
                  any improvement or developments made by the Company and based
                  upon Intellectual Property licensed from a member of the A
                  Group or B Group shall belong exclusively to the Company; and

         (c)      in the case of know how or other information, that information
                  becomes generally known or generally available to the public
                  through no act or failure to act on the part of either
                  Shareholder.

4.7      Cable Landing Stations

         The HCL Group shall not:
<PAGE>   18
                                                                              16

         (a)      make any capital expenditure or equity contribution in
                  relation to a submarine cable landing station in Hong Kong or
                  the PRC (including the establishment thereof); or

         (b)      own cable stations or submarine cable systems in each case
                  which land in Hong Kong or the PRC or participate in
                  consortiums or similar arrangements doing the same;

         provided that it is agreed that the HCL Group may facilitate the
         establishment of cable landing stations to the extent desirable to
         enable the HCL Group to compete as a provider of backhaul facilities
         and domestic services in Hong Kong and the PRC.

4.8      Satellite Earth Stations/Capacity

         The HCL Group shall not undertake the establishment and use of
         satellite earth stations or the leasing of satellite capacity without
         the prior approval of the Board and provided that the earth stations or
         satellite capacity is required for purposes not reasonably to be
         achieved on a competitive basis by use of submarine cables.

5.       DIRECTORS

5.1      Directors' Appointment

         The Board shall, unless the Shareholders otherwise unanimously agree,
         consist of six Directors. Each Shareholder shall be entitled to
         nominate 3 Directors and require the appoint by the Shareholders or by
         the Board of the 3 Directors nominated by it. The nominating
         Shareholder shall have the exclusive right to require the removal and
         replacement of the Director(s) nominated by that Shareholder from time
         to time. Each Shareholder shall from time to time promptly upon request
         of the other Shareholder take all such action, including voting their
         respective Shares, procuring their respective nominated Directors on
         the Board to vote in favour of resolutions and signing documents as may
         be necessary to appoint, remove or replace (as the case may require)
         Director(s) under this Clause.

5.2      Board Meetings

         Any two Directors may, at any time, convene a Board meeting. Meetings
         of the Board shall be held at least once every quarter. Unless
         otherwise agreed by a majority of the Directors, all Board meetings
         shall be held after not less than 14 Business Days written notice
         thereof (or such shorter period as the majority of the Directors
         entitled to attend that meeting may agree) has been given to each
         Director, or his alternate, stating the date, time, place and agenda of
         the Board meeting (including details of arrangements for participant by
         conference telephone or any other communication equipment permitted by
         clause 5.8) and no business (other than business of a routine or
         non-material nature) may be conducted at a Board meeting other than the
         business specified in the agenda. The sending of a notice of a Board
         meeting to the address or facsimile number from time to
<PAGE>   19
                                                                              17

         time notified or provided by each Director or his alternate to the
         Company Secretary shall be deemed to be a valid service of a notice of
         the Board meeting.

5.3      Quorum

         No meeting of the Board may proceed to business nor transact any
         business unless a quorum is present. The quorum for a Board meeting
         shall be two Directors (including one Director nominated by Party A and
         one Director nominated by Party B) present in person or by their
         respective alternates. If a quorum is not present within twenty minutes
         of the time scheduled for commencement of the Board meeting, the
         meeting shall be adjourned to the same time and place on the same day
         in the next week, unless at least one Director nominated by each of
         Party A and Party B agree to an alternative date, time or place.

5.4      Vote

         At any Board meeting, each Director shall have one vote.

5.5      Chairman

         The Chairman of the Board shall initially be nominated by Party A from
         among the persons for the time being nominated by Party A for
         appointment as Directors and shall be in such office for 18 months. The
         Chairman of the Board will then be appointed by Party B from among the
         persons for the time being nominated for appointment by Party B for
         appointment as Directors and shall also be in office for 18 months.
         Thereafter, such right of nomination of the Chairman of the Board shall
         be rotated between Party A and Party B every 18 months. The Chairman of
         the Board shall not be entitled to a second or casting vote.

5.6      Directors' Fees

         Unless otherwise agreed by the Shareholders unanimously, the Directors
         (or their respective alternates) shall not be entitled to be paid
         directors' fees but shall be reimbursed for all out-of-pocket
         (including travel and accommodations) expenses reasonably incurred in
         performing their duties as Directors and shall receive such
         remuneration for executive services performed for any member of the HCL
         Group as the Board may decide.

5.7      Written Resolutions

         A resolution in writing signed by at least two Directors nominated by
         Party A and at least two Directors nominated by Party B or by signed
         facsimile of their signatures shall be valid and effective for all
         purposes as if passed at a duly convened meeting of the Board. Any such
         resolution may consist of one or several documents in like form, each
         signed or authenticated by one or more of the Directors.

5.8      Participation and Location
<PAGE>   20
                                                                              18

         Any or all Directors may participate in a meeting of the Board by means
         of a conference telephone or any communications equipment which allows
         all persons participating in the meeting to hear and speak to each
         other. A person so participating shall be deemed to be present in
         person at the meeting and shall be entitled to be counted in the quorum
         and to vote accordingly. Unless otherwise agreed by the Shareholders,

         (a)      Board meetings (including attendance via conference calls)
                  shall take place in Hong Kong, Bermuda or such other location
                  as may be agreed by Party A and Party B; and

         (b)      written resolutions of the Board shall be signed by the Board
                  in Hong Kong, Bermuda or such other locations as may be agreed
                  by Party A and Party B.

5.9      Board Referral and Voting

         The Board shall determined all matters by way of simple majority unless
         otherwise provided for herein or unanimously agreed by the
         Shareholders, provided that prior to the date upon which the transfer
         restrictions on Shareholders cease by virtue of the application of
         Clause 11.2(a), all action by the Board shall require an affirmative
         vote of at least one director nominated by each Shareholder. The
         Shareholders shall procure that no member of the HCL Group will do any
         of the things listed in Schedule 3 without the prior approval of the
         Board. Notwithstanding the foregoing:

         (a)      a resolution regarding termination of the service agreement of
                  even date between HCL, Principal Party A and Hutchison
                  Telecommunications (Hong Kong) Limited or the service
                  agreement of even date between HCL and Principal Party A or
                  the termination of any service provided under either such
                  agreement may be passed by a majority of the directors
                  nominated by Party B present at a validly convened meeting of
                  directors of HCL and in the event of such termination Party A
                  shall procure that its nominated directors on the board of
                  directors of HCL do not unreasonably withhold their approval
                  of a replacement arrangement with a third party proposed by
                  Principal Party B; and

         (b)      a resolution regarding termination of the Licence and
                  Technical Assistance Agreement of even date between the
                  Company and Principal Party B may be passed by a majority of
                  the directors nominated by Party A present at a validly
                  convened meeting of directors of the Company or HCL (as the
                  case may require) and Principal Party B shall procure that its
                  nominated directors on the Board and on the board of directors
                  of HCL respectively do not unreasonably withhold their
                  approval of a replacement agreement with a third party
                  proposed by Principal Party B.

5.10     Board Matters

         Any action to be taken by or on behalf of the Company with respect to
         the matters set forth on Schedule 3 shall be first considered by the
         Board; provided, however, that the list of such matters is not intended
         and shall not be deemed to be an exhaustive list of items
<PAGE>   21
                                                                              19

         within the purview of the Board nor is it intended that the absence of
         any matter from inclusion on Schedule 3 shall give rise to any
         inference that any officer of the Company shall be permitted to take
         any action on behalf of the Company with respect to such omitted matter
         without first seeking the approval of the Board.

5.11     The Company's Subsidiaries Generally

         Unless the Shareholders otherwise unanimously agree, clauses 5.1 to
         5.10 shall apply, mutatis mutandis, to the Company's Subsidiaries
         (except partly owned Subsidiaries whose boards include directors
         appointed by third parties), provided however that in the case of such
         Subsidiaries other than HCL:

         (a)      the board of directors of such Subsidiary shall consist of two
                  directors;

         (b)      each Shareholder shall be entitled to nominate one director
                  each for such Subsidiary and require the appointment of the
                  director nominated by it;

         (c)      meetings of the board of directors of such Subsidiary shall be
                  held in the manner and at the times agreed by the
                  Shareholders;

         (d)      no resolution shall be passed by the board of directors of
                  such Subsidiary unless it is approved by the two directors of
                  such Subsidiary, each acting in accordance with the
                  instructions of the Board or the board of directors of HCL;

         (e)      the Shareholders shall take any actions necessary to procure
                  that the decisions of the Board and of the board of directors
                  of HCL relating to such Subsidiary are implemented; and

         (f)      Clause 5.7 shall apply as if each reference therein to "two
                  Directors" were to a reference to "one Director".

5.12     Certain Party Owned Subsidiaries

         In the case of party owned Subsidiaries of the Company whose boards
         include directors appointed by third parties, each Shareholder shall be
         entitled to appoint or require the appointment of, half the total
         number of directors which the shareholder of that Subsidiary (being a
         member of the HCL Group) is entitled to appoint to the board of
         directors of such Subsidiary ("Total Number"), provided that where the
         Total Number is an odd number, Party A and Party B shall mutually
         decide on the remaining director. If the Shareholders agree, they may
         appoint a lesser number of directors than the Total Number of the board
         of directors of such Subsidiary, provided that the number of directors
         appointed by each Shareholder shall be equal. The Shareholders shall
         procure that no resolution shall be passed by the board of directors
         unless it is approved by all the directors appointed by each
         Shareholder, each acting in accordance with the instructions of the
         Board or the board of directors of HCL. The Shareholders shall take any
         actions within their power to procure that the decisions of the Board
         and of the board of directors of HCL relating to such Subsidiary are
         implemented.
<PAGE>   22
                                                                              20

6.       SHAREHOLDERS MEETINGS

6.1      Convening Meetings

         Meetings of the Shareholders shall be convened at such times and in
         such manner as specified in the Articles and as required by law. The
         quorum for a meeting of the Shareholders shall be Shareholder A and
         Shareholder B being present in person or by proxy or attorney. If there
         is no quorum present within one hour of the time scheduled for the
         commencement of such meeting, then such meeting shall be adjourned to a
         date seven (7) days after the appointed date for such meeting and at
         the same time and place.

6.2      Requisite Majority

         The Shareholders shall determine all matters by way of simple majority
         unless otherwise provided for herein or required by any law or
         regulation applicable to the Company, in which case the matter shall be
         determined in the manner so provided for or required by such applicable
         law or regulation; provided, that all actions by Shareholders shall
         require the affirmative vote of Shareholder A and Shareholder B. The
         chairman of the meeting shall not have a second or casting vote. A
         resolution in writing signed by the authorised representative(s) of all
         Shareholders or by signed facsimile of their signatures shall be valid
         and effective for all purposes as if passed at a duly convened meeting
         of the Shareholders. Any such resolution may consist of one or several
         documents in like form, each signed or authenticated for and on behalf
         of one or more of the Shareholders.

7.       DEADLOCK

7.1      Definition

         A "deadlock" is deemed to have arisen where:

         (a)      (i)      a matter relating to the affairs of the Company and/
                           or its Subsidiaries has been considered by a meeting
                           of the Board or of the Shareholders (or the board of
                           the Company's Subsidiaries, as the case may be); and

                  (ii)     no resolution has been carried at such meeting of the
                           Board or the Shareholders (or the board of the
                           Company's Subsidiaries, as the case may be) in
                           relation to the matter by reason of an equality or
                           votes for and against any proposal for dealing with
                           it; and

                  (iii)    such matter is not resolved at such meeting;

         and

         (b)      such matter remains not resolved at the next meeting of the
                  Board or the Shareholders (or the board of the Company's
                  Subsidiaries, as the case may be).
<PAGE>   23
                                                                              21

7.2      Escalation Procedures

         When a "deadlock" is deemed to have arisen, the Company shall (and if
         the Company fails to do so, either Party A or Party B may do so)
         provide written notice thereof to the Third Level Executives, the
         Second Level Executives and the First Level Executives (the date such
         notice is delivered, the "Start Date"). The matter shall be referred in
         the first instance to the Managing Director of Party A and the Chief
         Executive Officer of Party B ("Third Level Executives") for their
         consideration, discussion and mutual decision. If there is no written
         agreement on such matter within 14 days from the Start Date, the matter
         shall be referred to the Group Managing Director of Principal Party A
         and the Chief Executive Officer of Principal Party B ("Second Level
         Executives") for their consideration, discussion and mutual decision.
         If they cannot reach a written agreement within 28 days from the Start
         Date, the matter will be referred to the respective chairman of the
         Principal Parties ("First Level Executives"). If, following this
         process, there is no written agreement between the First Level
         Executives with 45 days from the Start Date, the matter shall be
         referred to arbitration and the provisions of Schedule 5 shall apply.
         Any agreement between the Third Level Executives, Second Level
         Executives or First Level Executives shall be recorded in writing and
         notified to the Shareholders and the Company and shall thereupon bind
         the parties.

8.       ACCOUNTS AND INFORMATION TO SHAREHOLDERS

8.1      Accounting Records

         Each member of the HCL Group shall maintain accurate and complete
         accounting records and shall keep its accounts in accordance with
         generally accepted accounting principles in Hong Kong and such accounts
         shall be audited annually. In addition, each member of the HCL Group
         shall prepare quarterly financial statements in accordance with
         generally accepted accounting principles in Hong Kong, reconciled in
         each instance to United States generally accepted accounting principles
         at the cost of the Company.

8.2      Financial  Year

         The financial year of each member of the HCL Group shall end on 31st
         December in each year or on such other date as may be determined by the
         Board.

8.3      Auditors

         The auditors of each member of the HCL Group shall be a major
         international firm to be determined by the Board, but shall not be
         either Arthur Andersen LLP or PricewaterhouseCoopers LLP.

8.4      Shareholder Inspection

         Each of the Shareholders and its authorised representatives shall have
         the right, by prior appointment made on reasonable notice, during
         normal office hours, to inspect the books,
<PAGE>   24
                                                                              22

         accounting records and any document of any member of the HCL Group at
         its own expense.

8.5      Management and Audited Accounts

         The Company shall and will procure that each member of the HCL Group
         periodically prepares and submits to each of the Directors and the
         Shareholders:

         (a)      on a calendar monthly basis (and no later than 21 days after
                  the end of the relevant month) management accounts for such
                  month (and for the relevant financial year to date)
                  containing:

                  (i)      both on a consolidated basis and for each member of
                           the HCL Group individually, a detailed profit and
                           loss account and cashflow statement for the relevant
                           period and a balance sheet drawn up as at the end of
                           such period; and

                  (ii)     a comparison with the position at the relevant point,
                           and in respect of the relevant period, in the
                           previous financial year; and

         (b)      on an annual basis (and no later than 3 months after the end
                  of the financial year end) audited accounts for such financial
                  year containing both on a consolidated basis and for each
                  member of the HCL Group individually, a detailed profit and
                  loss account and cashflow statement for the financial year and
                  a balance sheet drawn up as at the end of such financial year;
                  and

         (c)      such further information in relation to the HCL Group (and in
                  such form) as any Shareholder may reasonably require from time
                  to time.

8.6      Non-Operating Companies

         The Board will, in consultation with the auditors of the Company,
         determine whether (a) management accounts shall be prepared for the
         non-operating companies of the HCL Group and (b) auditors need be
         appointed for such non-operating companies, and, in making such
         determination, the Board shall consider whether such audits are
         necessary in order to prepare the U.S. GAAP financial reconciliations
         referred to in Section 8.1.

8.7      Minutes

         The Company shall send to the Shareholders copies of minutes of all
         meetings of the Board and the Shareholders as soon as they have been
         finalised.

9.       BUSINESS PLAN; OPERATING BUDGET

9.1      Business Plan
<PAGE>   25
                                                                              23

         The initial business plan for the HCL Group (comprising operative
         budgets relating to income, capital expenditure, operating expense,
         cash flow and plans for any funding requirements for the period up
         until 31 December, 2004) has been agreed between the Shareholders
         before the date of this Agreement. The Shareholders agree to procure
         that the Business Plan shall be updated and thereafter should regularly
         be revised and up- dated on a "rolling 5 year annual basis" in
         accordance with the following provisions of this Clause 9.

9.2      Annual Plans

         The Company shall arrange and procure that, no later than 45 days
         before each financial year end, the Chief Financial Officer of the
         Company shall prepare and submit to each of the Directors and the
         Shareholders an updated 5 year business plan (for the financial year
         immediately following such financial year end and the next 4 financial
         years) incorporating (at least):

         (a)      a description of the HCL Group's intended activities over this
                  5 year period together with financial projections for the same
                  period; and

         (b)      the operating budgets (including, without limitation,
                  estimated revenues and expenditures) for the first financial
                  year of this period (the "Operating Budget") in substantially
                  the same format as the operating budgets included in the
                  Initial Business Plan.

9.3      Shareholder Approval

         Following submission to the Directors and the Shareholders of each
         business plan referred to in Clause 9.2, each of the Directors and the
         Shareholders shall have the opportunity to comment on such business
         plan and the Board shall consider such comments and, if considered
         appropriate, make such alterations to such business plan as seem
         appropriate with a view to the preparation of a definitive business
         plan for the relevant financial years capable of approval by the
         Shareholders as required in accordance with Clause 9.4. Following any
         such alternations, the revised business plan for the relevant financial
         years shall be re-circulated, as soon as practicable, to the same
         parties.

9.4      Reasonable Endeavours to Agree

         Once the business plan is approved by the Shareholders it shall become
         the "Business Plan" for the purposes of this Agreement. Each of the
         Shareholders will use its respective reasonably endeavours to agree the
         Business Plan on or before the date which is 20 days before the
         financial year end.

9.5      Expenditure and Failure by Board to Approve

         No expenditure shall be incurred by or on behalf of the HCL Group which
         is not contemplated, either specifically or generally, by the Operating
         Budget then in effect. If the Board does not approve the proposed
         Business Plan (including the Operating Budget)
<PAGE>   26
                                                                              24

         for any financial year, then the Operating Budget to be used by the HCL
         Group in connection with the management of the HCL Group for such
         financial year shall be the Operating Budget for the immediately
         preceding financial year (a "Roll-Over Budget"), except that the
         aggregate expenses of the HCL Group for the preceding financial year
         shall be increased by 7.5%, provided, however:

         (a)      the budget may include funding for any emergency expenditures
                  necessary during the current year that were not included in
                  the Operating Budget for the preceding financial year; and

         (b)      the budget may include funding for any preexisting commitment
                  of the HCL Group which has received any required approvals
                  under this Agreement.

         At least 10 Business Days prior to the beginning of each quarter of any
         financial year covered by a Roll-Over Budget, the Chief Financial
         Officer of the Company will prepare and present a proposed operating
         budget with respect to the remainder of such financial year which, upon
         Board approval thereof in accordance with Clause 5, shall be used by
         the HCL Group as the Operating Budget for such period.

10.      EMPLOYMENT POLICIES

10.1     Key Staff

         (a)      Subject to the provisions of this Clause 10.1, the Board shall
                  consult each of the Shareholders regarding the appointment of
                  key senior management staff of HCL provided always that
                  whether or not to appoint such person and if so the terms
                  thereof shall be determined by the Board at its absolute
                  discretion.

         (b)      The initial Chief Executive Officer of the Company and its
                  Subsidiaries shall be Peter Wong. The Chief Executive Officer
                  of the Company and its Subsidiaries from time to time will be
                  nominated by Party A with appointment subject to the Board's
                  approval.

         (c)      The Chief Financial Officer of the Company and its
                  Subsidiaries from time to time shall be nominated by Party B,
                  with appointment subject to the Board's approval.

         (d)      The Sales and Marketing Director shall from time to time be
                  nominated by Party B, with appointment subject to the Board's
                  approval.

         (e)      The initial Internet Director of the Company and its
                  Subsidiaries shall be Sammy Tse; provided, however, that until
                  30 June, 2000 and pending Principal Party A replacing Sammy
                  Tse for non HCL Group Internet business but in no event later
                  than June 30, 2000, Principal Party A may continue to utilise
                  Sammy Tse for up to 50% of his time. The Internet Director
                  from time to time will be nominated by Party A with
                  appointment subject to the Board's approval.
<PAGE>   27
                                                                              25

         (f)      The Chief Technology Officer of the Company and its
                  Subsidiaries shall be Peter Yip. Any successor engineering
                  director from time to time shall be nominated by Party A, with
                  appointment subject to the Board's approval.

         (g)      The Director of International Engineering of the Company and
                  its Subsidiaries from time to time shall be nominated by Party
                  B from time to time, with appointment subject to the Board's
                  approval. The said Director will report tot he Chief
                  Technology Officer.

11.      TRANSFER OF SHARES AND SHAREHOLDERS LOANS

11.1     General Restriction

         Subject to Clause 11.2 and Clause 11.3, no Shareholder shall, except
         with the prior written consent of the other Shareholder, sell, assign
         or otherwise dispose of create or permit to subsist any pledge, lien or
         charge over, or grant any opinion or other rights or any interest in
         all or any of the Shares held by it or all or part of the Shareholders
         Loans made by it.

11.2     AGCH

         Notwithstanding Clause 11.1, Party B may transfer all (but not less
         than all) of its Shares and assign all (but not less than all) of its
         Shareholders Loans owed to its to AGCH or one of AGCH's wholly-owned
         Subsidiaries provided that, at the time of such transfer, Principal
         Party B holds legally and beneficially at least 40% of the outstanding
         voting stock of AGCH. Principal Party B shall at the time of such
         transfer provide written notice to Principal Party A of such transfer
         and, if requested by Party A, an officer's certificate certifying as to
         its ownership interest in AGCH and warrants such certificate shall be
         accurate. Principal Party B further agrees that, following such
         transfer, if it ceases to legally and beneficially hold directly and
         indirectly at least 35% of the outstanding voting stock of AGCH (a
         "Triggering Event"):

         (a)      The restrictions on the Shareholders under Clause 11.1 and on
                  the Principal Parties under Clause 11.3 shall no longer apply
                  upon and from the date being 90 days from the date of the
                  occurrence of the Triggering Event (or, if earlier, the date
                  referred to in clause (c) below); and

         (b)      this Agreement shall terminate automatically upon the date
                  being 180 days from the date of the Triggering Event and all
                  obligations of the parties hereto under this Agreement shall
                  terminate, without prejudice to accrued liabilities.

         In addition, upon the occurrence of a Triggering Event, Principal Party
         B shall have the right, upon written notice to Principal Party A, to
         immediately terminate this Agreement effective on the date Principal
         Party A receives such notice and upon such termination, all obligations
         of the parties hereto under this Agreement shall terminate, without
         prejudice to accrued liabilities.
<PAGE>   28
                                                                              26

11.3     Legal and Beneficial Ownership

         Principal Party A and Principal Party B covenant that they shall
         continue to own legally and beneficially, directly or indirectly, 100%
         of the Shares owned by Party A and Party B respectively (as the case
         may be) except:

         (a)      as permitted under Clause 11.2(a) and 1.6A; and

         (b)      that Principal Party B may reduce its direct and indirect
                  ownership in AGCH (and consequently, its indirect ownership in
                  the Shares owned by Party B) subject to the consequences set
                  out in Clause 11.2 in the event of a Triggering Event; and

         (c)      that Principal Party B may reduce its direct and indirect
                  ownership in the Interim Entity subject to Principal Party B
                  owning not less than 51% of the issued voting shares of the
                  Interim Entity at all times when the Interim Entity holds any
                  Share and is not a wholly-owned subsidiary of AGCH as a result
                  of a transfer of stock of the Interim Entity to AGCH under
                  clause 1.6A.

11.4     Transfer to Wholly Owned Subsidiaries

         Notwithstanding anything herein to the contrary, a Shareholder (other
         than the Interim Entity) may transfer all (but not less than all) of
         its Shares and Shareholders Loans to any company which is a direct or
         indirect wholly owned Subsidiary of the Principal Party of that
         Shareholder ("Relevant Principal Party"), without the consent of the
         other Shareholder provided that written notice is given to the other
         Principal Party. Each of the Principal Parties further agrees that, in
         the event that its Relevant Shareholder transfers Shares and
         Shareholders Loans to a direct or indirect wholly owned Subsidiary of
         such Principal Party, it will procure that such transferee (a) is and
         will remain its direct or indirect wholly owned Subsidiary and without
         limiting the foregoing, if for any reason it ceases to be so, shall
         procure the re-transfer of the Shares and Shareholders Loans to itself
         or the transfer of the Shares or Shareholders Loans to another direct
         or indirect wholly owned Subsidiary of it, and (b) (as a condition of
         any such transferee becoming a Shareholder) agrees to the adherence to
         this Agreement by executing and delivering to the other Shareholder a
         deed of adherence substantially in the form set out in Schedule 4. In
         the event of any such transfer, such Relevant Principal Party shall
         remain liable for all obligations of the transferee under this
         Agreement.

12.      INTENTIONALLY DELETED

13.      GUARANTEE

13.1     Guarantee of Relevant Shareholder

         Each of the Principal Parties, in consideration of the Shareholder
         other than its Relevant Shareholder (the "Other Shareholder") and the
         other Principal Party entering into this
<PAGE>   29
                                                                              27

         Agreement, hereby guarantees, unconditionally and irrevocably as
         primary obligor, the due observance and performance by its Relevant
         Shareholder of all its agreements, obligations, commitments and
         undertakings contained in this Agreement (the "Guaranteed
         Obligations").

13.2     Continuing Guarantee etc.

         The guarantee and indemnity provided by each of the Principal Parties
         in this Clause 13 shall be a continuing guarantee and indemnity and
         shall cover all Guaranteed Obligations of its Relevant Shareholder
         notwithstanding the liquidation, incapacity or any change in the
         constitution or direct or indirect shareholding of its Relevant
         Shareholder or any settlement of account or variation or modification
         of this Agreement or any indulgence or waiver given by any party hereto
         or other matter whatsoever until the last claim whatsoever by the Other
         Shareholder against its Relevant Shareholder has been satisfied in
         full.

13.3     Invalidity

         Should any Guaranteed Obligation of the Relevant Shareholder, which if
         valid or enforceable would be the subject of the guarantee and
         indemnity in this Clause 13, be or become wholly or in part invalid or
         unenforceable against the Relevant Shareholder by reason of any defect
         in or insufficiency or want of powers of the Relevant Shareholder or
         irregular or improper purported exercise thereof or breach or want of
         authority by any person purporting to act on behalf of the Relevant
         Shareholder or because any of the rights have become barred by reason
         of any legal limitation, disability, incapacity or any other fact or
         circumstance whether or not always known to the Other Shareholder,
         Principal Party A or Principal Party B (as the case may be) shall
         nevertheless be liable to each Other Shareholder notwithstanding the
         avoidance or invalidity of any term or condition of this Agreement or
         of any Relevant Agreement whatsoever (including, without limitation,
         avoidance under any enactment relating to liquidation) in respect of
         that Guaranteed Obligation as if the same were wholly valid and
         enforceable.

13.4     Enforcement

         The guarantee and indemnity provided by each of the Principal Parties
         in this Clause 13 may be enforced against it by the Company or any
         Shareholder other than its Relevant Shareholder at any time without
         first instituting legal proceeding against its Relevant Shareholder in
         the first instance or joining in its Relevant Shareholder or the other
         Shareholder or the other Principal party as a party in the same
         proceedings against it.

13.5     Deed of Adherence

         Prior to a Shareholder disposing of any or all of its direct and
         indirect interest in the Shares under this Agreement, such Shareholder
         shall procure that the acquiror of such Shares (as a condition to any
         such acquiror becoming a Shareholder) agrees to the adherence to this
         Agreement by executing and delivering to the other Shareholder a deed
         of adherence substantially in the form set out in Schedule 4 (the "Deed
         of Adherence").
<PAGE>   30
                                                                              28

         For avoidance of doubt, the guarantee under Clause 13.1 of the
         Principal Party whose Relevant Shareholder disposes of Shares under
         this Agreement remains in full force and effect notwithstanding such
         disposal and supports all agreements, obligations, commitments and
         undertakings of the acquiror of such Shares contained in this
         Agreement.

13.6     AGCH Public Entity

         This Clause 13.6 applies if AGCH or one of its Subsidiaries shall
         beneficially own Shares (whether directly or indirectly) and AGCH or
         its immediate holding company is a public corporation (the "AGCH Public
         Entity"), the securities of which are publicly traded. Upon request by
         Principal Party B, Principal Party A shall not unreasonably withhold
         its consent to the release of Principal Party B from its obligations
         under this Clause 13 (without prejudice to accrued obligations) upon
         the AGCH Public Entity agreeing to assume those obligations in form
         reasonably acceptable to Principal Party A.

14.      CONFIDENTIALITY

         Each Shareholder and Principal Party shall, and shall exercise all of
         its powers so as to procure that its Subsidiaries and the Company
         shall, keep secret all trade secrets, know-how and other confidential
         information of the Company and of the other Shareholder and its
         Principal Party and the terms and conditions of this Agreement and
         shall not use or disclose any such confidential information except as
         authorised in writing by the owner. This obligation shall survive
         termination of this Agreement but shall not apply to any information
         after it has come into the public domain other than through a breach
         under this Agreement or to any disclosure to a party's professional
         advisors or if is required by any applicable laws or rules or
         regulations of any stock exchange or regulatory body, by order of a
         court of competent jurisdiction or in order to enforce the
         Shareholders' rights under this Agreement.

15.      NON COMPETITION AND OTHER OBLIGATIONS

15.1     Non Solicitation of Employees

         Each of the Shareholders and the Principal Parties undertakes to and
         with the other that during the term of this Agreement and for a period
         of one year (or if a court of competent jurisdiction determines that
         this period is unenforceable, six (6) months) thereafter ("the Period")
         it will not, and it will procure that none of its Subsidiaries,
         directly or indirectly and whether as shareholder, supplier or in any
         other capacity either on its own account or in conjunction with or on
         behalf of any other person, solicit or entice away or attempt to
         solicit or entice away from any member of the HCL Group any person who
         within one year prior to the commencement of the Period was an officer,
         manager, consultant or employee of any member of the HCL Group in Hong
         Kong or the PRC whether or not such person would commit a breach of
         contract by reason of leaving such employment;
<PAGE>   31
                                                                              29

         provided, however, nothing shall prohibit general solicitations not
         focused on the HCL Group.

15.2     Non-Compete

         Save as otherwise agreed among the Shareholders or as otherwise
         provided herein, during the term of this Agreement, each of the
         Shareholders and Principal Parties shall not, and shall procure that
         their respective Subsidiaries shall not, and Principal Party A shall,
         for so long as CK is the beneficial owner of at least 40% of the voting
         shares of Principal Party A, use its reasonable commercial endeavours
         to cause CK and its Subsidiaries not to, and, without limiting the
         foregoing, Principal Party B shall, for so long as the Interim Entity
         owns Shares and is not a wholly-owned subsidiary of AGCH, use its
         reasonable commercial endeavours to cause AGCH not to, directly or
         indirectly with any third party for an investment in, or otherwise make
         any investment in, any entity engaged in or intending to engage in any
         Business (each, a "Competing Entity") in:

         (a)      with respect to PRC Fixed Services, the PRC;

         (b)      with respect to Internet Access and Transport Services, Hong
                  Kong and/or the PRC; and

         (c)      with respect to HK Fixed Services and Internet Enablement
                  Services, Hong Kong only;

         in any case, other than through the HCL Group.

15.3     Exceptions to Non-Compete

         Nothing in Clause 15.1 or Clause 15.2 or any other provision of this
         Agreement shall:

         (a)      prohibit any Shareholder or its Subsidiaries or Principal
                  Party or its Subsidiaries (each a "Restricted Person") from
                  investing in any Competing Entity so long as (a) the
                  consolidated revenues of such Competing Entity from any
                  service or activity within the scope of the Business do not
                  exceed 15% of the total consolidated revenues of such
                  Competing Entity shall not use the name "Hutchison" and/or
                  "Whampoa" or "Global Crossing" as part of its name; provided
                  however, in a case where the service or activity within the
                  scope of the Business is conducted by an entity which has no
                  significant operations or operating history and, within two
                  years from the date of such investment, the consolidated
                  revenues of the Competing Entity from such service and/or
                  activity exceeds 20% of the total consolidated revenues of
                  such Competing Entity, such Restricted Person shall provide
                  the Company an option to acquire its investment in such
                  Competing Entity (subject to any necessary third party
                  consents provided that such party shall use commercially
                  reasonable efforts to avoid the requirement for, and obtain,
                  if applicable, the necessary consents) in cash at the fair
                  market value thereof but subject to the proviso contained in
                  this Clause 15.3(a), the said Restricted Person may maintain
                  such investment notwithstanding such revenues
<PAGE>   32
                                                                              30

                  in the future exceed 15% of the total consolidated revenues of
                  such Competing Entity.

         (b)      prohibit a Restricted Person from being or becoming the owner
                  for investment purposes of the shares or other securities of
                  any corporation which carries on any business provided that
                  (i) such investment has been notified to the Board in writing
                  prior to the investment; (ii) the corporation does not use as
                  part of its corporate or business name the name "Global
                  Crossing", "Hutchison" and/or "Whampoa" and (iii) such
                  investment does not exceed 10% of the outstanding voting stock
                  of such corporation;

         (c)      prohibit any Restricted Person from carrying on a PRC Business
                  in accordance with Clauses 4.5 and 4.6;

         (d)      prohibit any Restricted Person (being a member of a group of
                  Subsidiaries of a Principal Party which carries on a single or
                  related business or itself carrying on a single or related
                  business) from self-providing Internet Enablement Services if
                  such services are used solely by the members of that group (or
                  as the case may be, that person) to meet the needs of that
                  single or related business, so long as such business is not
                  within the scope of the Business;

         (e)      prohibit any Restricted Person from engaging in (or entering
                  into investments that are engaging in) any service or activity
                  within the scope of the Business to the extent such service,
                  activity or investment was considered by the Board and was
                  rejected by the Board; provided that (i) such Restricted
                  Person or its relevant proposing Principal Party notifies the
                  Board in writing of its intent to engage in such service or
                  activity or make such investment at least 30 days prior to
                  committing to undertake such service or activity or make such
                  investment and (ii) such service or activity or investment
                  shall not use the name "Hutchison" and/or Whampoa or "Global
                  Crossing"; and provided, further, if the reason the Board
                  rejected such service, activity or investment was due to
                  capital requirements and the Restricted Person pursues such
                  opportunity, the Company shall have an option, for a period of
                  one year from the date of the notice referred to above to
                  acquire such opportunity from the Restricted Person for cash
                  in an amount equal to the Restricted Person's total investment
                  cost plus interest thereon at a rate per annum equal to the
                  Restricted Person's cost of capital;

         (f)      prohibit any member of the A Group from carrying on the
                  activities set forth in Schedule 2;

         (ff)     prohibit any member of the A Group or the B Group from
                  performing Internet Enablement Services incidental to a
                  business solution or service which, but for the Internet
                  Enablement Services, would not be within the scope of Internet
                  Enablement Services; Internet Enablement Services are
                  "incidental" to a business solution/service in cases where the
                  revenue derived from such Internet Enablement Services is less
                  than 15% of the combined revenue derived from providing the
                  business solution/service.
<PAGE>   33
                                                                              31

         (g)      require Principal Party A to cause CK or its Subsidiaries to
                  refrain from engaging in any activity which a member of the A
                  Group could undertake sub-clauses (a) through to (f) above;

         (h)      prohibit any Restricted Person within the B Group from
                  developing, constructing, owning, operating, maintaining
                  and/or using cable landing stations (for the avoidance of
                  doubt, the B Group shall be permitted to develop, construct,
                  own, operate, maintain and land submarine cable systems, and
                  terrestrial systems outside Hong Kong and the PRC, and sell
                  capacity and services thereon, subject to the proviso
                  contained in Paragraph (i) of Clause 15.3.

         (i)      prohibit any Restricted Person within the B Group from
                  developing, constructing, operating, maintaining, owning,
                  leasing or otherwise providing backhaul facilities in Hong
                  Kong and the PRC to connect cable stations owned and operated
                  by any member of the B Group in Hong Kong and the PRC with
                  related Point-of-Presence in Hong Kong and the PRC (together
                  with Capacity and services on their submersible cable systems
                  and their terrestrial cable systems outside Hong Kong and the
                  PRC); provided, however that no member of the B Group shall
                  supply capacity of services on such backhaul facilities, or
                  utilise such Points-of-Presence for provision of such capacity
                  or services to persons other than:

                  (a)      Carriers in Hong Kong and/or the PRC in connection
                           with the use of the B Group's network or cable
                           landing station(s); and

                  (b)      persons located outside Hong Kong requiring
                           international connectivity provided that the
                           agreements in relation to such connectivity were
                           initiated outside Hong Kong and the PRC and provided
                           further that no member of the B Group shall engage in
                           marketing in Hong Kong or the PRC to any person other
                           than a Carrier; provided further that each member of
                           the B Group shall use the HCL Group for all Capacity
                           in Hong Kong subject to the terms set out in Clause
                           15.8. For avoidance of doubt, nothing in this
                           paragraph (i) shall allow any member of the B Group
                           to develop, construct, own, lease, or use any
                           terrestrial link between Hong Kong and the PRC or any
                           terrestrial links between Points-of-Presence in Hong
                           Kong or the PRC (other than terrestrial links
                           connecting its cable stations in Hong Kong with a
                           Point of Presence in Hong Kong or connecting its
                           cable stations in the PRC with a Point of Presence in
                           the PRC) (as the case may be), other than on the HCL
                           network or otherwise in accordance with Clause 15.8.

15.4     Definition of Carrier

         For the purposes of Clause 15.3(i) above,

         (a)      "Carrier" means:
<PAGE>   34
                                                                              32

                  (i)      in relation to services provided in Hong Kong, a
                           person in Hong Kong who is authorised to undertake
                           the full range of HK Fixed Services in Hong Kong; and

                  (ii)     in relation to services provided in the PRC, a person
                           in the PRC who is authorised to undertake the full
                           range of PRC Fixed Services in the PRC.

         If the competitive environment in relation to the Business or the
         licensing regime for HK Fixed Services or PRC Fixed Services changes
         after the date hereof and as a result thereof the provisions of Clause
         15.3(i), applying the definition of Carrier as defined above, no longer
         reflects the commercial understanding of the parties at the date hereof
         (which commercial understanding was arrived at having regard to the
         competitive environment and the licensing regime as at the date
         hereof), Principal Party B shall be permitted, by giving notice to
         Principal Party A, to request that the definition of "Carrier" be
         renegotiated. The parties shall co-operate with each other in relation
         to such re-negotiation and shall undertake such re-negotiation in good
         faith.

         (b)      "Point-of-Presence" or "POP" means a facility or equipment
                  connecting the B Group's network with the network of a local
                  fixed network in Hong Kong (other than a cable landing
                  station).

15.4A    Overseas Sales by HCL Group

         No member of the HCL Group shall sell any services or facilities
         comprising the Business to any Person outside Hong Kong and the PRC
         provided that:

         (a)      the HCL Group shall be permitted to sell capacity or rights
                  thereto acquired under the Network Agreement of even date
                  between Global Crossing USA Inc., the Company and Principal
                  Party B or any Capacity Agreement entered into thereunder to
                  Principal Party A or its Subsidiaries pursuant to and subject
                  to the terms set out in Section 9(c) of the said Network
                  Agreement; and

         (b)      the HCL Group shall be permitted to sell services or
                  facilities to Persons located outside of Hong Kong and the PRC
                  requiring international connectivity provided that: (i) the
                  discussions, negotiations and offer of sale in relation to
                  such connectivity were initiated with a Person located in Hong
                  Kong or the PRC; (ii) the negotiations in respect of such sale
                  were conducted in Hong Kong or the PRC, and (iii) the Person
                  located outside Hong Kong or the PRC purchasing such services
                  or facilities is affiliated with the Person located in Hong
                  Kong or the PRC with whom the initial discussions and
                  negotiations were entered into; and (iv) the Person located
                  outside Hong Kong or the PRC is entering into the relevant
                  agreement for such sale due to corporate approval, regulatory,
                  tax or other similar circumstances, and provided further that
                  no member of the HCL Group shall engage in marketing outside
                  Hong Kong and the PRC.

15.5     Without prejudice to Clause 2.9 and 15.8, Principal Party B shall and
         shall procure that members of the B Group shall allow connection to
         their respective cable landing stations
<PAGE>   35
                                                                              33

         located in Hong Kong or to their respective POPs located in Hong Kong
         on reasonable commercial terms with network facilities and services
         owned, operated or provided by the HCL Group.

15.6     Compatibility with Global Crossing Network

         The parties agree to procure that HCL's network and services will be
         compatible with the Global Crossing Network in order to provide for
         seamless network management in accordance with international industry
         standards.

15.7     Restrictions Reasonable

         While the restrictions contained in this Clause 15 are considered by
         the parties hereto to be reasonable in all the circumstances, it is
         recognised that restrictions of the nature in question may fail for
         technical reasons unforeseen. It is hereby agreed and declared that if
         any such restrictions shall be adjudged to be void as going beyond what
         is reasonable in all the circumstances for the protection of the
         interests of the parties hereto, but would be valid if parts of the
         wording thereof were deleted or the period thereof were reduced, the
         said restrictions shall apply with such modifications as may be
         necessary to make it valid and effective.

15.8     Use of HCL Group

         Except as provided in this Clause 15,

         (a)      Principal Party A and Principal Party B respectively agree,
                  and agrees to cause members of the A Group and the B Group
                  respectively, to use the HCL Group for all Capacity and
                  service needs in the PRC and Hong Kong which fall within the
                  Business and are being provided by the HCL Group; and

         (b)      Principal Party A agrees, for so long as CK is the beneficial
                  owner of at least 40% of the voting shares of Principal Party
                  A, to use its reasonable commercial endeavors to cause CK and
                  its Subsidiaries to use the HCL Group for all Capacity and
                  service needs in the PRC and Hong Kong which fall within the
                  Business and are being provided by the HCL Group;

         provided that the terms offered by the HCL Group are competitive with
         available alternatives with respect to price, availability, quality and
         other terms material to its competitiveness and subject to Clause 2.10.

         In the event that the terms offered by HCL Group are not competitive as
         aforesaid, then the relevant member of the A Group or the B Group (as
         the case may require) or CK or its Subsidiaries, as the case may be,
         may use a third party to provide the relevant Capacity and services in
         respect of which HCL Group was not so competitive and such use shall
         not infringe this Clause 15.
<PAGE>   36
                                                                              34

15.9     Revenues

         For purposes of Clause 15.3(a) above, revenues of a Competing Entity
         shall be determined on the basis of financial information for the most
         recent period of twelve months for which financial information is
         available.

16.      PROTECTION OF NAME

16.1     Principal Party A/Hutchison Name

         In the event that Principal Party A or any of its Subsidiaries cease to
         hold any of the Shares, the Shareholders shall, at the request of
         Principal Party A and within a reasonable period of time of receipt
         thereof, take such steps as may be necessary to procure that the
         Company removes any reference to principal Party A's name or to the
         name of "Hutchison" in the name or business description of any member
         of the HCL Group.

16.2     Principal Party B/Global Crossing Name

         In the event that Principal Party B or any of its Subsidiaries ceases
         to hold any of the Shares, the Shareholders shall, at the request of
         Principal Party B and within a reasonable period of time of receipt
         thereof, take such steps as may be necessary to procure that the
         Company removes any reference to Principal Party B's name or to the
         Global Crossing name in the name or business description of any member
         of the HCL Group.

17.      TERMINATION

17.1     Term

         Save as otherwise provided, this Agreement shall continue indefinitely.

17.2     Termination

         This Agreement, other than the provisions of Clause 14 shall terminate:

         (a)      with respect to a Shareholder when such Shareholder ceases to
                  be a shareholder of the Company by reason of a transfer of
                  Shares pursuant to Clause 11; and

         (b)      as contemplated by Clause 11.2;

         and shall terminate upon the Company being wound up or otherwise
         dissolved.

17.3     Termination by Principal Party

         A Principal Party may without prejudice to its other rights at law,
         terminate this Agreement in the event of occurrence of any of the
         following:
<PAGE>   37
                                                                              35

         (a)      any order shall be made by a competent court or other
                  appropriate governmental authority or any resolution shall be
                  passed for bankruptcy liquidation, winding-up or dissolution
                  or for the appointment of a trustee or similar official of the
                  other Principal Party and/or its Relevant Shareholder, or of
                  all or a substantial part of such other Principal Party's
                  and/or its Relevant Shareholder's assets, and shall not have
                  been dismissed or overturned for 60 days; or

         (b)      the other Principal Party and/or its Relevant Shareholder
                  shall stop payment to creditors or make an arrangement with
                  its creditors or shall be unable to pay its debts within the
                  meaning of any applicable legislation relating to bankruptcy;
                  or

         (c)      the occurrence of a Fundamental Breach by the other Principal
                  Party and/or its Relevant Shareholder ("Defaulter") which
                  breach, if capable of remedy, has not been remedied at the
                  expiry of 30 days following written notice by a non-breaching
                  Shareholder ("Innocent Party") having been served on the
                  Defaulter if the said written notice states in reasonable
                  detail the Fundamental Breach alleged and such Innocent
                  Party's intent to exercise its rights under this Clause 17 as
                  a result of such Fundamental Breach.

         In order to terminate this Agreement under this Clause 17.3(c), the
         Innocent Party must serve a further notice of termination ("Termination
         Notice") on the Defaulter which notice may be served at any time after
         the expiration of the 30 day period referred to in Clause 17.3(c).
         Termination of this Agreement shall take effect at the time specified
         in the Termination Notice, provided that such time so specified shall
         not be less than 2 Business Days after the receipt by the Defaulter of
         the Termination Notice from the Innocent Party.

17.4     Reservation of Other Rights

         Each Party reserves all of its rights at law (including, without
         limitation, rights to claim damages) arising out of any breach of this
         Agreement by any other Party.

18.      MISCELLANEOUS

18.1     Assignment

         This Agreement shall be binding upon and shall ensure to the benefit of
         the parties their successors and assigns, provided that this Agreement
         may not be assigned or transferred in whole or in part by any party
         without the consent of the other parties or otherwise as provided for
         herein.

18.2     Implementation of Agreement

         Each Shareholder agrees that it will at all times:
<PAGE>   38
                                                                              36

         (a)      use all means reasonably available to it (including its voting
                  power direct or indirect in relation to the Company) so as to
                  ensure that the Company and any Director nominated by it (and
                  any alternate of such Director) shall implement the provisions
                  of this Agreement relating to the Company.

         (b)      cooperate in good faith and execute such documents and take
                  such action as may be reasonably required to give full effect
                  to the provisions and intent of this Agreement; and

         (c)      use its commercially reasonable endeavours to develop and
                  expand the business of the Company in accordance with the
                  Business Plan.

18.3     No Agency, Partnership or Third Party Beneficiaries

         Other than for United States federal tax purposes, nothing contained in
         or relating to this Agreement shall or shall be deemed to constitute a
         partnership or agency relationship between any of the parties. This
         Agreement does not provide, and is not intended to provide, third
         parties with any remedy, claim, liability, reimbursement, cause of
         action or any other right.

18.4     Severability

         If any term or provision of this Agreement shall be found to be invalid
         or unenforceable for any reason, the other terms or provisions shall
         not be affected and such invalid or unenforceable term shall be deemed
         to be deleted.

18.5     Counterparts and Amendments

         This Agreement may be executed in multiple counterparts, each of which
         when fully executed shall be deemed an original for all purposes. This
         Agreement shall not be amended except by written instrument signed by
         each of the Principal Parties (which amendment, when made, shall be
         binding on all of the parties to this Agreement from time to time).

18.6     Governing Law and Jurisdiction

         This Agreement shall be governed by and construed in accordance with
         the laws of England and (other than matters to be determined under
         Clause 7) each party hereby irrevocably submits to the non-exclusive
         jurisdiction of English courts in England.

19.      NOTICE

         Each demand, notice or communication given or made under this Agreement
         shall be in writing and shall be delivered or sent to the relevant
         party personally, by expedited courier, by certified or registered mail
         (airmail if overseas) with return receipt requested or by facsimile at
         the following address or facsimile number (or such other addresses or
<PAGE>   39
                                                                              37

         facsimile number as the addressee has by fourteen (14) days' prior
         notice specified to the other parties):

         Principal Party A:         Hutchison Whampoa Limited
                                    22nd Floor, Hutchison House
                                    10 Harcourt Road
                                    Hong Kong
                                    Facsimile No.:  2128-1778
                                    Attention:  The Company Secretary

         Party A:                   Hutchison Telecommunications Limited
                                    22 Tak Fung Street
                                    Hung Hom
                                    Kowloon
                                    Hong Kong

                                    Facsimile No.:  2128-3104
                                    Attention: The Finance Director

         Principal Party B:         Global Crossing Ltd.
                                    Wessex House
                                    45 Reid Street
                                    Hamilton, HM12
                                    Bermuda

                                    Facsimile No.:  441-296-8606
                                    Attention:  James C. Gorton, Esq., General
                                                Counsel

         Party B:                   Global Crossing Holdings Ltd.
                                    Wessex House
                                    45 Reid Street
                                    Hamilton, HM12
                                    Bermuda

                                    Facsimile No.:  441-296-8606
                                    Attention:  James C. Gorton, Esq., General
                                                Counsel

         The Company:               HCL Holdings Limited
                                    22 Tak Fung Street
                                    Hung Hom
                                    Kowloon
                                    Hong Kong

                                    Facsimile No.:  2128-3104
                                    Attention: The Finance Director
<PAGE>   40
                                                                              38

         Any notice so addressed shall be sufficiently served: (i) if delivered
         personally, at t he time of delivery; (ii) if sent by expedited courier
         or by certified or registered mail with postage or transmission charges
         fully paid, on the fifth (5th) day following the date of posting or
         dispatch; (iii) if by facsimile, at the time of transmission to the
         correct facsimile number, provided that the sending party shall have
         obtained electronic or other confirmation of accurate and complete
         transmission.

20.      TAXES

20.1     Tax Matters

         (a)      The "tax matters partner" for purposes of section 6231(a)(7)
                  of the Internal Revenue Code of 1986 of the United States, as
                  amended (the "Code") shall be Principal Party B or its
                  designated Affiliate (provided, however, that such Affiliate
                  must be a Shareholder) (the "Tax Matters Shareholder"). The
                  Tax Matters Shareholder shall have all of the rights, duties,
                  powers and obligations provided for in sections 6221 through
                  6231 of the Code with respect to the Company.

         (b)      Tax Returns

                  (i)      The Tax Matters Shareholder shall timely prepare, or
                           cause to be prepared, all tax returns for each member
                           of the HCL Group for all taxable years or periods,
                           and in all jurisdictions other than Hong Kong, that
                           such tax returns are required to be filed;

                  (ii)     HCL shall timely cause to be prepared all Hong Kong
                           tax returns for each member of the HCL Group for all
                           taxable years or periods that such tax returns are
                           required to be filed;

                  (iii)    Any Shareholder may request in writing to review any
                           and all tax returns of the HCL Group, and all
                           reasonable comments proposed by such Shareholder
                           shall be incorporated into such tax returns by the
                           party controlling the preparation thereof; and

                  (iv)     If a dispute arises with respect to the preparation
                           of any tax return, any Shareholder may request in
                           writing to submit such tax return to review by an
                           outside accounting firm mutually acceptable to all
                           Shareholders (the "Accounting Firm"), and the
                           determination made by the Accounting Firm shall be
                           binding on all members of the HCL group and on all
                           Shareholders. Such determination shall be made no
                           later than the 10th day prior to the due date for
                           filing such return.

                  (v)      All fees incurred by the Accounting Firm with respect
                           to any dispute referred to in subclause (iv) shall be
                           paid as follows:
<PAGE>   41
                                                                              39

                           (1)      If the Accounting Firm determines that the
                                    position of the party requesting review of a
                                    return according to the provisions of
                                    subclause (iv) above (the "Requesting
                                    Party") is correct, then the non-requesting
                                    party (the "Other Party") shall pay all such
                                    fees;

                           (2)      If the Accounting Firm determines that the
                                    position of the Other Party is correct, then
                                    the Requesting Party shall pay all such
                                    fees; or

                           (3)      If the Accounting Firm determines that the
                                    position of neither or both parties is
                                    correct, the Requesting Party and the Other
                                    Party shall each pay half of all such fees.

20.2     HCL Group Tax Elections

         (a)      The Tax Matters Shareholder shall, in its reasonable
                  discretion, have the right to make, or cause each member of
                  the HCL Group to make, all United States federal, state and
                  local tax elections with respect to such member (including,
                  without limitation, any election to be classified as a
                  corporation for U.S. federal income tax purposes); provided
                  that the Tax Matters Shareholder shall notify and consult with
                  Principal Party A prior to making any such elections; and
                  provided further, however, that the elections described in
                  subclause (b) below may be made in the sole discretion of the
                  Tax Matters Shareholder, without notification of or
                  consultation with Principal Party A, and shall be subject to
                  the provisions of subclause (b).

         (b)      At any time, each member of the HCL Group shall, if so
                  requested by the Tax Matters Shareholder and subject to the
                  provisions of Clause 4.11 of the Subscription and Sale and
                  Purchase Agreement, make an election to be classified as a
                  partnership or a disregarded entity, as the case may be, for
                  U.S. federal income tax purposes by filing an election on
                  Internal Revenue Service Form 8832 (or any successor form),
                  all of which elections shall be effective as of a date
                  specified by the Tax Matters Shareholder; and

         (c)      Except as set forth in subsections (a) and (b) of this Clause
                  20.2, the Company shall make, or cause to be made, all other
                  tax elections of each member of the HCL Group, subject to
                  prior approval of the Board as set forth in Clause 5.9 hereof,
                  and subject further to the deadlock provisions of Clause 7
                  hereof, provided however, that such Board approval and such
                  deadlock procedures shall proceed in a manner so as to allow
                  any election under this subclause to be timely made.

20.3     Capital Accounts; Book Allocations

         (a)      There shall be established for each Shareholder on the books
                  of the Company as of the date hereof, or such later date on
                  which such Shareholder is admitted to the Company, a capital
                  account (each being a ("Capital Account"). The Capital Account
                  of each Shareholder shall be credited with the amount set
                  forth under
<PAGE>   42
                                                                              40

                  "Initial Capital Account" on Schedule 1 opposite such
                  Shareholder's name paid by such Shareholder, increased by any
                  allocation of income or gain and by any additional capital
                  contributions by that Shareholder, and shall be reduced by any
                  allocation of loss, expense or deduction and by any
                  distribution to that Shareholder. Capital Accounts shall be
                  appropriately adjusted to reflect transfers of part (but not
                  all) of a Shareholder's Shares. Interest shall not be payable
                  on Capital Account balances.

         (b)      Except as otherwise provided herein, all items of Company
                  income, gain, loss, expense or deduction shall be allocated to
                  the Capital Accounts of the Shareholders in proportion to
                  their Share ownership. The foregoing provisions relating to
                  the maintenance of Capital Accounts and allocations of Company
                  income, gain, loss, expense or deduction are intended to
                  comply with U.S. Treasury Regulations section 1.704-1(b)
                  (including, without limitation, the "qualified income offset"
                  provisions contained therein) and shall be interpreted and
                  applied in a manner consistent with such U.S. Treasury
                  Regulations. Additionally, the foregoing allocation provisions
                  shall be interpreted and applied in a manner consistent with
                  the "minimum gain chargeback" provisions set forth in U.S.
                  Treasury Regulations section 1.704-2(f) and 1.704-2(i)(4).

20.4     Tax Allocations. Except as otherwise required by the Code or U.S.
         Treasury Regulations (including without limitation section 704(b) and
         (c) of the Code and U.S. Treasury Regulations promulgated thereunder),
         all items of Company income, gain, loss, expense, deduction and any
         other items shall be allocated among the Shareholders for federal
         income tax purposes in the same proportions as they share the
         corresponding items pursuant to Section 20.3.

21.      AGENT FOR SERVICE

21.1     Principal Party B

         Principal Party B and (if Party B is a different entity to Party B)
         Party B hereby irrevocably agrees that any Service Document may be
         sufficiently and effectively served on it in connection with
         Proceedings by service on its agent Global Crossing Ltd. At 4th Floor,
         Washington House, 40-41 Conduit Street, London W1R 9FB, England, if no
         replacement agent has been appointed and notified to the other parties
         pursuant to Clause 21, or on the replacement agent if one has been
         appointed and notified to the other parties.

21.2     Principal Party A

         Principal Party A hereby irrevocably agrees that any Service Document
         may be sufficiently and effectively served on it in connection with
         Proceedings by service on its agent. The Law Debenture Corporation plc
         at 95 Gresham Street London, England, if no replacement agent has been
         appointed and notified to the other parties pursuant to Clause
<PAGE>   43
                                                                              41

         21.4, or on the replacement agent if one has been appointed and
         notified to the other parties.

21.3     Service

         Any document addressed in accordance with Clause 21.1 or 21.2 shall be
         deemed to have been duly served if:

         (a)      left at the specified address, when it is left; or

         (b)      sent by first class post, two Business Days after the date of
                  posting.

21.4     Replacements

         If the agent referred to in Clause 21.1 or Clause 21.2 (or any
         replacement agent appointed pursuant to this Clause) at any time ceases
         for any reason to act as such, the original appointer shall appoint a
         replacement agent to accept service having an address for service in
         London, England and shall notify the other parties of the name and
         address of the replacement agent.

21.5     Definitions

         In this Clause 21:

         (a)      "Proceeding" means any proceedings, suit or action arising out
                  of or in connection with this Agreement.

         (b)      "Service Document" means a writ, summons, order, judgement or
                  other process issued out of the courts of England in
                  connection with any Proceedings.

22.      EFFECTIVE DATE

         This Agreement shall come into effect on the date first written above
         (the "Effective Date"). With effect from the Effective Date, this
         Agreement and the Relevant Agreements shall represent the entire
         agreement of the parties with respect to the subject matter hereof and
         shall supersede all previous discussions, representation or agreement.
<PAGE>   44
                                   SCHEDULE 1A

                                A GROUP SERVICES

                           1.       Paging Services

                           2.       Mobile Services

                           3.       Call Centre Services
<PAGE>   45
                                   SCHEDULE 1B

                                B GROUP SERVICES

List of Global Crossing Products

Wholesale Capacity on Global Crossing Network

         -        Subsea & Terrestrial
         -        Dark Fiber, Wavelengths, STMs, Ds-3s, Els, etc.
         -        IRUs and leases

Service Across Global Crossing Network
         -        Subsea & Terrestrial
         -        Data Services (incl. ATM and Frame Relay)
         -        IP Services (incl. Transit/Transport, Internet Access and IP
                  VPN)
         -        Voice (VOIP and Circuit Switched Minutes)
         -        IPLCs

Telehouse/MDC Services
         -        Collocation
         -        Internet Enablement Services (as defined in Shareholders
                  Agreement)
         -        Peering Services
<PAGE>   46
                                   SCHEDULE 2

                             NON COMPETE EXCEPTIONS

The provision by Hutchison Telephone Company Limited or its Subsidiary or
Affiliate of Internet Access and Transport Services through wireless means to
subscribers to its mobile telecommunications services, but subject to the
provision of Clause 15.8.
<PAGE>   47
                                   SCHEDULE 3

                                RESERVED MATTERS

1.       Any amendment to the Articles or the articles of association of any
         member of the HCL Group.

2.       The creation, allotment or issue of any Shares or of any shares in the
         capital of any member of the HCL Group or the grant or agreement to
         grant any option over Shares or any uncalled capital of the Company or
         shares or uncalled capital of any member of the HCL Group or the issue
         of any obligations convertible into Shares or shares of any member of
         the HCL Group.

3.       The redemption or purchase of any Shares or of any shares of any member
         of the HCL Group.

4.       Any change in the nature or scope of the Business or the commencement
         of any new business not being ancillary or incidental to such business
         and/or any modification to the Business Plan or the Operating Budget.

5.       The giving of any guarantee, indemnity or other security to any person
         (including, without limitation, to any of the Principal Parties or any
         members of the A Group or the B Group) by the Company or any other
         member of the HCL Group or the borrowing by the Company or any other
         member of the HCL Group in excess of limits from time to time contained
         in the Business Plan or otherwise not in excess of HK$7,500,000 or any
         refinancing thereof or material amendments thereto.

6.       The acquisition or the disposal by the Company or any member of the HCL
         Group of:

         (a)      any shares or other interests in any company or other entity;
                  or

         (b)      any business (or assets formerly used in the conduct of any
                  business); or

         (c)      any assets, other than in the ordinary course of business.

7.       The approval pursuant to Clause 9 of the Business Plan.

8.       The amalgamation or merger of the Company or any other member of the
         HCL Group with any other company or legal entity.

9.       Any change in name of any member of the HCL Group.

10.      The declaration or payment of dividends.
<PAGE>   48
11.      The commencement of the defense or conduct of litigation by any member
         of the HCL Group concerning a claim by a third party against any member
         of the HCL Group which is material to such member.

12.      Any changes to the accounting policies of any member of the HCL Group.

13.      The commencement of a winding-up (or similar proceedings) (or the sale
         of all or substantially all of the assets of any member of the HCL
         Group).

14.      The purchase of any freehold property, by, or the grant or assignment
         of any leasehold property to, any member of the HCL Group.

15.      The provision by HCL Group of backhaul services at other than market
         rates where not expressly permitted by this Agreement.

16.      The disposition of capacity on the HCL network for non-cash
         consideration.

17.      Any transaction or agreement between any member of the HCL Group, on
         the one hand, and Principal Party A or Principal Party B (or their
         respective affiliates), on the other hand, or any amendments to any
         such agreements.

18.      Capital expenditures in excess of HK$7,500,000, unless specifically
         contemplated by the Operating Budget.

19.      Execution or material amendment or termination of "material" contracts.

20.      Election, appointment or removal of senior management.

21.      Create, grant or issue or agree to create, grant or issue, any
         mortgage, charge or other lien on any of its assets (or any of its
         Shares).

22.      Enter into any individual contract or commitment which is outside the
         ordinary course of business or has a value in excess of HK$7,500,000 or
         has a duration of greater than 18 months.

23.      Disposition of any asset having a net book value in excess of
         HK$7,500,000.

24.      Changing the HCL Group's independent accountants.

25.      Subject to Clauses 20.1 and 20.2, changing any member of the HCL
         Group's residence for taxation purposes, making or changing any
         taxation election, changing any annual taxation accounting period or
         method of taxation accounting, filing any material amended taxation
         return, settling any material taxation claim or assessment,
         surrendering any right to claim a taxation refund or consenting to any
         extension or waiver of the limitation period applicable to any taxation
         claim assessment.
<PAGE>   49
26.      The acquisition of, or investment in, any company.

27.      Any reorganisation, recapitalization or similar extraordinary corporate
         action or transaction involving any member of the HCL Group.

28.      Establishment of any new subsidiary.
For the purpose of this Schedule, a contract shall be "material" if (a) it
relates to a matter not within the ordinary course of business of the applicable
member of the HCL Group; (b) it has a value in excess of HK$7,500,000; (c) it
has a stated term (including automatic renewals and renewals which may be
exercised by the other party) in excess of 18 months (and, if any contract does
not have stated term it shall be deemed to be "material" if it cannot be
terminated on less than six months' notice); or (d) such contract can be
terminated (or the substantive rights set forth therein can be modified) in the
event of change in the underlying ownership or control of the member of the HCL
Group which is a party to such contract.
<PAGE>   50
                                   SCHEDULE 4

                                DEED OF ADHERENCE
<PAGE>   51
                                DEED OF ADHERENCE

THIS DEED is dated _________, _____ and is made by [        ] of [        ] (the
"New Shareholder") in favor of the following persons ("Existing Parties"):

(1)      [Include the name of each shareholder of HCL Holdings Limited other
         than the outgoing shareholder, as at the date of the Deed] a company
         incorporated in [           ] and having its registered office at
         [            ] ("Existing Shareholder");

(2)      Hutchison Whampoa Limited, a company incorporated in Hong Kong and
         having its registered office at 22nd Floor, Hutchison House, 10
         Harcourt Road, Hong Kong ("Principal Party A");

(3)      Global Crossing Ltd., a company incorporated in Bermuda and having its
         registered office at Wessex House, 45 Reid Street, Hamilton, HM12,
         Bermuda ("Principal Party B"); and

(4)      HCL Holdings Limited, a company incorporated in the British Virgin
         Islands and having its registered office at P.O. Box 957 Offshore
         Incorporations Center, Road Town, Tortola, British Virgin Islands (the
         "Company").

WHEREAS:

(A)      This Deed is supplemental to a Shareholders Agreement, dated as of [ ]
         January, 2000 (the "Shareholders Agreement"), a copy of which is
         annexed hereto.

(B)      Principal Party [A][B] [complete as applicable] has given written
         notice to Principal Party [A][B] [complete as applicable] that the New
         Shareholder is becoming a member of the Company.

NOW THIS DEED WITNESSETH THAT

(1)      The New Shareholder hereby covenants and undertakes to the Existing
         Parties that it will at all times perform and observe the continuing
         provisions of the Shareholders Agreement as if the New Shareholder were
         a party to the Shareholders Agreement and were named therein as a
         Shareholder and Party [A][B] [complete as applicable] and on the basis
         that references therein to "Shareholder" include a reference to the New
         Shareholder and references to the "Principal Party" in respect of the
         New Shareholder were a reference to Principal Party [A][B] [insert
         Principal Party of the transferring party].

(2)      (A)      This Deed shall be governed by and construed in accordance
                  with the laws of England.

         (B)      The New Shareholder hereby irrevocably accepts and submits to
                  the non-exclusive jurisdiction of the courts of England but
                  this Deed may be enforced in any court of competent
                  jurisdiction.
<PAGE>   52
IN WITNESS WHEREOF, this Deed has been executed as a Deed the day and year
before first written.

SEALED with the Common Seal of              )
[Insert Name of the New Shareholder]        )
and SIGNED by                               )
in the presence of:
<PAGE>   53
                                   SCHEDULE 5

                               ARBITRATION/EXPERT

Unless otherwise stated, references herein to Clauses are to clauses of this
Schedule.

1.       General

         1.1      If a deadlock arises between the Principal Parties in
                  connection with or arising from this Agreement and the matter
                  is referred to arbitration pursuant to Clause 7.2 of this
                  Agreement (a "Dispute"), the Dispute shall be submitted to
                  arbitration in accordance with Clause 2.

         1.2      A party must not use information obtained in the course of any
                  procedure established by this Schedule for any purpose other
                  than to resolve the relevant dispute.

2.       Arbitration

         2.1      (a)      Any referral of a Dispute to arbitration shall be
                           made by notice, including a statement of the matters
                           in the Dispute.

                  (b)      The arbitration must be conducted in accordance with
                           the London Court of International Arbitration Rules
                           (the "Rules") in force at the time the arbitration is
                           commenced. The Rules are deemed to be incorporated by
                           reference into this Schedule.

                  (c)      The arbitration shall take place in England and shall
                           be conducted in English.

                  (d)      Party A and Principal Party A on the one hand, and
                           Party B and (if Principal Party B is a different
                           entity to Party B) Principal Party B, on the other
                           hand, shall each appoint one arbitrator to resolve
                           any Dispute, whereupon the two arbitrators shall
                           appoint a third arbitrator. If the arbitrators
                           appointed by the parties are unable to agree upon the
                           appointment of the third arbitrator within 14 days,
                           then such arbitrator shall be appointed by the London
                           Court of International Arbitration.

                  (e)      In addition to the qualifications of the arbitrators
                           contemplated by the Rules, the arbitrators should:

                           (i)      have an understanding of the relevant
                                    aspects of the telecommunications industry;
                                    and

                           (ii)     not be an officer, director or employee of a
                                    telecommunications company.
<PAGE>   54
                  (f)     The parties agree to expedite the arbitration to the
                          extent possible.

                  (g)     Unless determined to the contrary by the arbitrators,
                          the parties will bear their own costs of the
                          arbitration including the costs of any representatives
                          and will each bear half the costs of the arbitration.

2.2      The Parties agree that the arbitrators may refer business or technical
         matters to experts for decision.

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