Document:

exv4w4

 

Commercial-in-Confidence

 

 

SERVICES AGREEMENT

By and among

EQUANT N.V.

And

SOCIÉTÉ INTERNATIONALE DE

TÉLÉCOMMUNICATIONS AÉRONAUTIQUES S.C.

And

SITA INFORMATION NETWORKING

COMPUTING N.V.

 

 

	 	 	 
	

	Services Agreement	 	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	RECITALS	 	 	1	 
	 	1.	 	 	 	DEFINITIONS AND INTERPRETATION	 	 	2	 
	 	 	 	 	 	1.1.	 	 	Definitions
	 	 	2	 
	 	 	 	 	 	1.2.	 	 	Interpretation
	 	 	2	 
	 	2.	 	 	 	TERM	 	 	2	 
	 	3.	 	 	 	SERVICES	 	 	3	 
	 	 	 	 	 	3.1.	 	 	Services
	 	 	3	 
	 	 	 	 	 	3.2.	 	 	Services Under Post-Effective Date Agreements Not Included
	 	 	3	 
	 	 	 	 	 	3.3.	 	 	Branding and Marketing
	 	 	3	 
	 	4.	 	 	 	CHANGES IN THE SCOPE OF SERVICES	 	 	4	 
	 	 	 	 	 	4.1.	 	 	Commissioning of Requested Services
	 	 	4	 
	 	 	 	 	 	4.2.	 	 	Product Council
	 	 	4	 
	 	 	 	 	 	4.3.	 	 	Development of New Products and Services
	 	 	4	 
	 	 	 	 	 	4.4.	 	 	Access to Product Marketing Functions
	 	 	6	 
	 	5.	 	 	 	NETWORK, NETWORK PLANNING AND NETWORK EXPANSION	 	 	6	 
	 	 	 	 	 	5.1.	 	 	Continuity of Network Services Worldwide
	 	 	6	 
	 	 	 	 	 	5.2.	 	 	Network Planning Committee
	 	 	8	 
	 	 	 	 	 	5.3.	 	 	Network Modification Funding
	 	 	8	 
	 	 	 	 	 	5.4.	 	 	Step-In Rights
	 	 	11	 
	 	 	 	 	 	5.5.	 	 	Network Operational Performance Committee
	 	 	14	 
	 	6.	 	 	 	SERVICE PROCEDURES	 	 	14	 
	 	 	 	 	 	6.1.	 	 	Annual Review
	 	 	14	 
	 	 	 	 	 	6.2.	 	 	Implementation of Approved Executive Committee Resolutions
	 	 	14	 
	 	 	 	 	 	6.3.	 	 	Co-operation
	 	 	15	 
	 	 	 	 	 	6.4.	 	 	Transfer of Global One Contracts with the Air Transport Community
	 	 	15	 
	 	 	 	 	 	6.5.	 	 	Operations and Procedures Manual
	 	 	15	 
	 	 	 	 	 	6.6.	 	 	Call Centres
	 	 	16	 
	 	 	 	 	 	6.7.	 	 	Outsourcing Support
	 	 	16	 
	 	 	 	 	 	6.8.	 	 	Type A Messaging Support
	 	 	16	 
	 	 	 	 	 	6.9.	 	 	Class A Addresses
	 	 	16	 
	 	7.	 	 	EXCLUSIVITY AND NON-SOLICITATION	 	 	17	 
	 	 	 	 	 	7.1.	 	 	Effective Period
	 	 	17	 
	 	 	 	 	 	7.2.	 	 	Exclusive Provider of Network Services
	 	 	17	 
	 	 	 	 	 	7.3.	 	 	SITA INC Outsourcing or Merger Activity
	 	 	21	 
	 	 	 	 	 	7.4.	 	 	Equant Non-Solicitation Obligation
	 	 	24	 
	 	 	 	 	 	7.5.	 	 	SITA Group Companies Non-Solicitation Obligation
	 	 	24	 
	 	 	 	 	 	7.6.	 	 	Limitation
	 	 	24	 
	 	 	 	 	 	7.7.	 	 	Linkage of the Related Provisions
	 	 	25	 
	 	 	 	 	 	7.8.	 	 	Effect of Deletion or Amendment of Related Provisions
	 	 	25	 
	 	 	 	 	 	7.9.	 	 	Breach of Exclusivity and Non-Solicitation Provisions
	 	 	26	 

	 	 	 
	

	Services Agreement	i	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8.	 	 	 	SERVICE LEVELS	 	 	30	 
	 	 	 	 	 	8.1.	 	 	General
	 	 	30	 
	 	 	 	 	 	8.2.	 	 	Failure to Perform
	 	 	30	 
	 	 	 	 	 	8.3.	 	 	Service Credits
	 	 	30	 
	 	9.	 	 	 	TAXES	 	 	31	 
	 	 	 	 	 	9.1.	 	 	General
	 	 	31	 
	 	 	 	 	 	9.2.	 	 	Billing Entities, Billed Entities and Remitting Entities
	 	 	31	 
	 	10.	 	 	 	PRICING OF PRODUCTS AND SERVICES	 	 	31	 
	 	 	 	 	 	10.1.	 	 	Pricing Categories and Prices
	 	 	31	 
	 	 	 	 	 	10.2.	 	 	Price Books and Price Book Updates
	 	 	32	 
	 	 	 	 	 	10.3.	 	 	Service Charges
	 	 	39	 
	 	 	 	 	 	10.4.	 	 	Invoicing
	 	 	45	 
	 	 	 	 	 	10.5.	 	 	Reliance on historical data and non-performance by Equant
	 	 	45	 
	 	11.	 	 	 	BENCHMARKING SURVEY	 	 	47	 
	 	 	 	 	 	11.1.	 	 	General
	 	 	47	 
	 	 	 	 	 	11.2.	 	 	Nomination and Selection of the Independent Expert
	 	 	48	 
	 	 	 	 	 	11.3.	 	 	Appointment of the Independent Expert
	 	 	48	 
	 	 	 	 	 	11.4.	 	 	Frequency of Benchmarking
	 	 	48	 
	 	 	 	 	 	11.5.	 	 	Role of the Independent Expert
	 	 	48	 
	 	 	 	 	 	11.6.	 	 	Termination of the Benchmarking Agreement
	 	 	50	 
	 	 	 	 	 	11.7.	 	 	Acceptance of the Benchmarking Report
	 	 	52	 
	 	 	 	 	 	11.8.	 	 	Implementation of the Benchmarking Report
	 	 	52	 
	 	 	 	 	 	11.9.	 	 	Benchmarking Regions
	 	 	53	 
	 	 	 	 	 	11.10.	 	 	Benchmarking Costs
	 	 	53	 
	 	 	 	 	 	11.11.	 	 	Equant and SITA SC Responsibilities
	 	 	54	 
	 	 	 	 	 	11.12.	 	 	Co-operation of the Parties
	 	 	54	 
	 	 	 	 	 	11.13.	 	 	Actions During Dispute Resolution Procedures
	 	 	54	 
	 	12.	 	 	 	PRICE TO VOLUME SURVEY	 	 	55	 
	 	 	 	 	 	12.1.	 	 	Price to Volume Assessment
	 	 	55	 
	 	 	 	 	 	12.2.	 	 	Role of the Independent Expert
	 	 	55	 
	 	 	 	 	 	12.3.	 	 	Frequency of Price to Volume Assessment
	 	 	55	 
	 	 	 	 	 	12.4.	 	 	Acceptance of the Price to Volume Assessment Report
	 	 	56	 
	 	 	 	 	 	12.5.	 	 	Termination of a Benchmarking Agreement
	 	 	56	 
	 	 	 	 	 	12.6.	 	 	Allowable Differential
	 	 	56	 
	 	13.	 	 	 	MOST FAVOURED NATION PRICING	 	 	57	 
	 	 	 	 	 	13.1.	 	 	Most Favoured Nation Pricing Evaluation
	 	 	57	 
	 	 	 	 	 	13.2.	 	 	Nomination and selection of the MFN Evaluator
	 	 	58	 
	 	 	 	 	 	13.3.	 	 	Appointment of the MFN Evaluator
	 	 	58	 
	 	 	 	 	 	13.4.	 	 	Role of the MFN Evaluator
	 	 	58	 
	 	 	 	 	 	13.5.	 	 	Frequency of MFN Evaluation
	 	 	59	 
	 	 	 	 	 	13.6.	 	 	Termination of a Benchmarking Agreement
	 	 	59	 
	 	 	 	 	 	13.7.	 	 	Termination of a MFN Agreement
	 	 	59	 
	 	 	 	 	 	13.8.	 	 	Acceptance of the results of the MFN Evaluation Report and the MFN
Certification Report
	 	 	61	 
	 	 	 	 	 	13.9.	 	 	Implementation of the MFN Evaluation Report and the MFN Certification Report
	 	 	61	 
	 	 	 	 	 	13.10.	 	 	Costs of MFN Evaluation
	 	 	61	 
	 	 	 	 	 	13.11.	 	 	Equant and SITA SC Responsibilities
	 	 	62	 
	 	 	 	 	 	13.12.	 	 	Ex-parte communications
	 	 	62	 
	 	 	 	 	 	13.13.	 	 	Actions during Dispute Resolution Procedures
	 	 	62	 

	 	 	 
	

	Services Agreement	ii	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	14.	 	 	 	MINIMUM REVENUE COMMITMENT	 	 	63	 
	 	15.	 	 	 	NETWORK ACTIVITY FORECASTS	 	 	67	 
	 	 	 	 	 	15.1.	 	 	Network Activity Forecasts
	 	 	67	 
	 	 	 	 	 	15.2.	 	 	Other information
	 	 	69	 
	 	16.	 	 	 	RECOGNISABLE COSTS	 	 	69	 
	 	 	 	 	 	16.1.	 	 	Significant Forecast Deviation and Recognisable Costs
	 	 	69	 
	 	 	 	 	 	16.2.	 	 	Mitigation of Recognisable Costs
	 	 	71	 
	 	 	 	 	 	16.3.	 	 	Payments in respect of Recognisable Costs
	 	 	72	 
	 	 	 	 	 	16.4.	 	 	Payment and semi-annual summaries
	 	 	73	 
	 	 	 	 	 	16.5.	 	 	Minimum Revenue Commitment
	 	 	73	 
	 	 	 	 	 	16.6.	 	 	Limitation on liability
	 	 	73	 
	 	17.	 	 	 	RELIANCE ON HISTORICAL DATA	 	 	73	 
	 	18.	 	 	 	INVOICING AND PAYMENT	 	 	74	 
	 	 	 	 	 	18.1.	 	 	Invoicing
	 	 	74	 
	 	 	 	 	 	18.2.	 	 	Amendments to Billed Entities
	 	 	74	 
	 	 	 	 	 	18.3.	 	 	Invoice Content and Format
	 	 	76	 
	 	 	 	 	 	18.4.	 	 	Detailed Billing Files and Mediation Data
	 	 	76	 
	 	 	 	 	 	18.5.	 	 	Payment Due
	 	 	77	 
	 	 	 	 	 	18.6.	 	 	Pass Through Expenses
	 	 	78	 
	 	 	 	 	 	18.7.	 	 	Interest
	 	 	80	 
	 	 	 	 	 	18.8.	 	 	Right of Set-Off
	 	 	80	 
	 	19.	 	 	 	SITA SC AND SITA INC RESPONSIBILITIES	 	 	81	 
	 	 	 	 	 	19.1.	 	 	SITA SC Representative and SITA INC Representative
	 	 	81	 
	 	 	 	 	 	19.2.	 	 	Co-operation; Specific Obligations
	 	 	82	 
	 	 	 	 	 	19.3.	 	 	Failure to Perform
	 	 	83	 
	 	20.	 	 	 	EQUANT RESPONSIBILITIES	 	 	83	 
	 	 	 	 	 	20.1.	 	 	Other Equant Obligations to SITA SC and/or SITA INC
	 	 	83	 
	 	 	 	 	 	20.2.	 	 	Equant Project Executive
	 	 	84	 
	 	 	 	 	 	20.3.	 	 	Co-operation
	 	 	85	 
	 	21.	 	 	 	AUDITS AND RECORD KEEPING	 	 	85	 
	 	 	 	 	 	21.1.	 	 	SITA SC and SITA INC Audit Rights
	 	 	85	 
	 	 	 	 	 	21.2.	 	 	Equant Audit Rights
	 	 	86	 
	 	 	 	 	 	21.3.	 	 	Cooperation with Audit Representatives
	 	 	86	 
	 	 	 	 	 	21.4.	 	 	Costs
	 	 	87	 
	 	22.	 	 	 	CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS	 	 	87	 
	 	 	 	 	 	22.1.	 	 	Confidentiality of Agreement
	 	 	87	 
	 	 	 	 	 	22.2.	 	 	Public Announcements
	 	 	87	 
	 	 	 	 	 	22.3.	 	 	Protection of Confidential Information
	 	 	87	 
	 	 	 	 	 	22.4.	 	 	Use of Confidential Information
	 	 	88	 
	 	 	 	 	 	22.5.	 	 	Exceptions to Obligations of Confidentiality
	 	 	89	 
	 	 	 	 	 	22.6.	 	 	Equitable Relief
	 	 	89	 
	 	 	 	 	 	22.7.	 	 	Period of Confidentiality
	 	 	89	 

	 	 	 
	

	Services Agreement	iii	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	23.	 	 	 	INTELLECTUAL PROPERTY RIGHTS	 	 	90	 
	 	24.	 	 	 	WARRANTIES	 	 	90	 
	 	 	 	 	 	24.1.	 	 	Representations and Warranties by Equant
	 	 	90	 
	 	 	 	 	 	24.2.	 	 	Representations and Warranties by SITA SC
	 	 	90	 
	 	 	 	 	 	24.3.	 	 	Representations and Warranties by SITA INC
	 	 	91	 
	 	 	 	 	 	24.4.	 	 	No Additional Representations and Warranties
	 	 	92	 
	 	25.	 	 	 	INDEMNITIES	 	 	92	 
	 	 	 	 	 	25.1.	 	 	Indemnity by Equant
	 	 	92	 
	 	 	 	 	 	25.2.	 	 	Indemnity by SITA SC
	 	 	92	 
	 	 	 	 	 	25.3.	 	 	Indemnity by SITA INC
	 	 	93	 
	 	 	 	 	 	25.4.	 	 	Indemnification Procedures
	 	 	94	 
	 	26.	 	 	 	LIABILITY AND LIMITATION OF LIABILITY	 	 	95	 
	 	 	 	 	 	26.1.	 	 	Damages
	 	 	95	 
	 	 	 	 	 	26.2.	 	 	Limitations of Liability
	 	 	95	 
	 	 	 	 	 	26.3.	 	 	Duty to Mitigate
	 	 	97	 
	 	27.	 	 	 	TERMINATION	 	 	97	 
	 	 	 	 	 	27.1.	 	 	Termination for Cause by SITA SC and/or SITA INC
	 	 	97	 
	 	 	 	 	 	27.2.	 	 	Termination for Cause by Equant
	 	 	98	 
	 	 	 	 	 	27.3.	 	 	Termination for Insolvency
	 	 	98	 
	 	 	 	 	 	27.4.	 	 	Termination for Change of Control
	 	 	99	 
	 	 	 	 	 	27.5.	 	 	Termination for Force Majeure
	 	 	99	 
	 	 	 	 	 	27.6.	 	 	Accrued Rights
	 	 	100	 
	 	 	 	 	 	27.7.	 	 	Effect of Termination by a Party
	 	 	100	 
	 	 	 	 	 	27.8.	 	 	Cross-Defaults
	 	 	101	 
	 	 	 	 	 	27.9.	 	 	Co-operation Upon Expiry or Termination
	 	 	102	 
	 	28.	 	 	 	FORCE MAJEURE	 	 	105	 
	 	 	 	 	 	28.1.	 	 	Neither Party Liable
	 	 	105	 
	 	 	 	 	 	28.2.	 	 	Period of Delay
	 	 	106	 
	 	29.	 	 	 	DISPUTE RESOLUTION	 	 	106	 
	 	 	 	 	 	29.1.	 	 	Dispute Resolution Procedure
	 	 	106	 
	 	 	 	 	 	29.2.	 	 	Continued Performance
	 	 	106	 
	 	30.	 	 	 	GENERAL	 	 	106	 
	 	 	 	 	 	30.1.	 	 	Governing Law
	 	 	106	 
	 	 	 	 	 	30.2.	 	 	Notices
	 	 	106	 
	 	 	 	 	 	30.3.	 	 	Service of Notice
	 	 	108	 
	 	 	 	 	 	30.4.	 	 	Relationship of Parties
	 	 	108	 
	 	 	 	 	 	30.5.	 	 	Waiver
	 	 	108	 
	 	 	 	 	 	30.6.	 	 	Entire Agreement and Variation
	 	 	108	 
	 	 	 	 	 	30.7.	 	 	Priority of Documents
	 	 	109	 
	 	 	 	 	 	30.8.	 	 	Use of Resources
	 	 	109	 
	 	 	 	 	 	30.9.	 	 	Limitations Period
	 	 	109	 
	 	 	 	 	 	30.10.	 	 	Third Party Beneficiaries
	 	 	110	 
	 	 	 	 	 	30.11.	 	 	Assignment
	 	 	110	 
	 	 	 	 	 	30.12.	 	 	Counterparts
	 	 	110	 
	 	 	 	 	 	30.13.	 	 	Cumulative Rights
	 	 	110	 
	 	 	 	 	 	30.14.	 	 	Reading Down
	 	 	111	 
	 	 	 	 	 	30.15.	 	 	Severability
	 	 	111	 
	 	 	 	 	 	30.16.	 	 	Contra Proferentem
	 	 	111	 
	 	 	 	 	 	30.17.	 	 	Costs
	 	 	111	 
	 	 	 	 	 	30.18.	 	 	Survival of Terms
	 	 	111	 

	 	 	 
	

	Services Agreement	iv	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

SCHEDULES

	 	 	 
	Schedule A	 	Glossary
	Schedule B
	 	Year 2000 Price Books
	Schedule C
	 	Product Council Mandate
	Schedule D
	 	Network Planning Committee Mandate
	Schedule E
	 	Network Operational Performance Committee Mandate
	Schedule F
	 	Service Levels Schedule
	Schedule G
	 	Reports
	Schedule H
	 	Billing Entities, Billed Entities and Remitting Entities
	Schedule I
	 	Schedule of Services
	Schedule J
	 	Price Book Update Timescale
	Schedule K
	 	Nomination and Selection of Independent Expert
	Schedule L
	 	Network Security
	Schedule M
	 	Instructions to Independent Expert
	Schedule N
	 	Instructions to MFN Evaluator
	Schedule O
	 	Benchmarking Regions
	Schedule P
	 	Unit Cost, Cost Base and Volume Considerations
	Schedule Q
	 	Forecasting
	Schedule R
	 	Tail Circuit Management
	Schedule S
	 	Invoice Content and Format
	Schedule T
	 	Operations and Procedures Manual Requirements
	Schedule U
	 	Call Centres
	Schedule V
	 	Outsourcing Support
	Schedule W
	 	Intellectual Property Rights
	Schedule X
	 	Type A Messaging Support
	Schedule Y
	 	Class A Address Space Management

	 	 	 
	

	Services Agreement	v	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

SERVICES AGREEMENT

PREAMBLE

AGREEMENT dated: 29 June 2001, as amended on
                2001

PARTIES

This Agreement is among:

Equant N.V., a Dutch company having its registered office at 21-23
Gatwickstraat, 1043 GL Amsterdam, the Netherlands (‘Equant’)

AND

Société Internationale de Télécommunications Aéronautiques S.C., a Belgian
co-operative company having its registered office at 14 avenue Henri Matisse,
B-1140 Brussels, Belgium (‘SITA SC’)

AND

SITA Information Networking Computing N.V., a Dutch company having its
registered office at Heathrowstraat 10, 1043 CH Amsterdam, the Netherlands
(‘SITA INC’)

(each a ‘Party’, and together, the
‘Parties’).

RECITALS

	A.	 	On even date herewith

	 	(i)	 	the Parties and France Telecom have also entered into a
Strategic Relationship Umbrella Agreement;
	 
	 	(ii)	 	Equant and SITA SC have also entered into a Transition and
Management Agreement; and
	 
	 	(iii)	 	SITA SC, SITA INC and France Telecom have also entered into
an Account Management Agreement.

	B.	 	The Parties hereby agree that Equant shall provide certain products and
services to SITA SC and SITA INC on the terms and conditions set out in
this Agreement.

	 	 	 
	

	Services Agreement	1	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

Now, therefore, the Parties, in consideration of the premises and mutual
covenants and undertakings contained herein, agree as follows:

TERMS AND CONDITIONS

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1.	 	Definitions

In this Agreement, all capitalised terms shall have the meaning set out in the
Glossary in Schedule A or as defined in the text of this Agreement.

	1.2	 	Interpretation
	 
	(a)	 	In this Agreement, unless the express context indicates or requires a
contrary intention:

	 	(i)	 	words suggesting the singular include the plural and vice
versa;
	 
	 	(ii)	 	words suggesting any gender include any other gender;
	 
	 	(iii)	 	references to a ‘legal entity’ include a company,
corporation, partnership, joint venture, co-operative company,
unincorporated or incorporated association or organisation or
statutory authority, and references to a ‘person’ include an
individual or a legal entity;
	 
	 	(iv)	 	headings used in this Agreement are for ease of reference
only and will not affect the interpretation of this Agreement;
	 
	 	(v)	 	references to any agreement or document (including to this
Agreement) are to that agreement or document as amended,
supplemented, varied or replaced from time to time;
	 
	 	(vi)	 	use of the words ‘includes’ or ‘including’ shall be deemed to
be followed by the words ‘without limitation’; and
	 
	 	(vii)	 	a reference to a clause, paragraph, or Schedule means a
clause, paragraph, or schedule to this Agreement.

	2.	 	TERM

The term of this Agreement shall commence from and include the Effective Date
and shall continue in effect for a period of ten (10) years (the ‘Term’),
unless terminated earlier in accordance with the terms of this Agreement or
extended by the mutual agreement of the Parties.

	 	 	 
	

	Services Agreement	2	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	3.	 	SERVICES
	 
	3.1.	 	Services
	 
	(a)	 	Equant shall, or shall cause, one or more of the Equant Group Companies
to provide to SITA SC, to SITA INC and to the SITA Group Companies the
Services, which shall consist of:

	 	(i)	 	the Network Services (including Generic Products/Services and
SITA Specific Products/Services) listed in the Price Books as being
available for a Country and that are ordered by SITA SC (for its own
use or resale to the Air Transport Community and for the use of the
SITA Group Companies or resale to the Air Transport Community)
and/or by SITA INC (for its own use or resale to the Air Transport
Community) in respect of such Country;
	 
	 	(ii)	 	the Support Services (including Generic Products/Services and
SITA Specific Products/Services) listed in the Price Books as being
available for a Country and that are ordered by SITA SC (for its own
use or resale to the Air Transport Community and for the use of the
SITA Group Companies or resale to the Air Transport Community)
and/or by SITA INC (for its own use or resale to the Air Transport
Community) in respect of such Country; and
	 
	 	(iii)	 	such other products or services on an ad hoc basis as may be
agreed by the Parties from time to time.

	(b)	 	Equant shall offer to SITA SC, the SITA Group Companies, and SITA INC all
Generic Products/Services that Equant offers to other Equant customers.
	 
	3.2.	 	Services Under Post-Effective Date Agreements Not Included

The provision of services pursuant to any other agreements executed by the
Parties after the Effective Date is not included within the scope of the
Services.

	3.3.	 	Branding and Marketing

With effect from the Effective Date, SITA SC, the SITA Group Companies and SITA
INC shall each have the right to brand and market the Network, the Network
Services and the Support Services provided by Equant to SITA SC, a SITA Group
Company, or SITA INC (whether such Network Service or Support Service is a
Generic Product/Service or SITA Specific Product/Service) as a network, product
or service of the SITA Group Companies when sold or provided by SITA SC, SITA
INC or one of the SITA Group Companies to any of their respective customers.

	 	 	 
	

	Services Agreement	3	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	4.	 	CHANGES IN THE SCOPE OF SERVICES
	 
	4.1.	 	Commissioning of Requested Services

The Parties will agree in writing additional Generic Products/Services and
additional SITA Specific Products/Services, and such agreements will be set out
as amendments to the Price Books and Service Level Schedule, as appropriate.

	4.2.	 	Product Council

Within fifteen (15) days following the Effective Date, the Parties will
establish a Product Council. The composition and procedures of the Product
Council are set forth in Schedule C (‘Product Council Mandate’) and at all
times the Product Council shall act and be governed in accordance with Schedule
C. The first meeting of the Product Council shall be convened within thirty
(30) days following the Effective Date.

	4.3.	 	Development of New Products and Services
	 
	(a)	 	As provided in Schedule C (‘Product Council Mandate’), the Product
Council may recommend from time to time that Equant develop new Generic
Products/Services, or SITA Specific Products/Services.
	 
	(b)	 	If the Product Council recommends that Equant develop a new Generic
Product/Service, Equant in its sole and absolute discretion may elect in
writing to accept or not accept such Product Council recommendation to
develop a new Generic Product/Service. In exercising this discretion,
Equant may have specific regard as to whether expected sales (to the SITA
Group Companies and to other Equant customers or prospective customers)
would be sufficient to permit Equant to recover the full costs of
development of the proposed Generic Product/Service. Equant shall fund
the full cost of developing Generic Products/Services.
	 
	(c)	 	If Equant elects not to accept a Product Council recommendation to
develop a new Generic Product/Service, SITA SC and/or SITA INC may
nevertheless require Equant to develop and produce such product or service
at cost as a new SITA Specific Product/Service pursuant to clause 4.3(d)
and to support such SITA Specific Product/Service at the prices set out in
the Price Books. SITA SC and Equant shall promptly agree a development
document in respect of each new SITA Specific Product/Service that will
set out the technical specifications, development costs, development
timetables, and all other commercial terms between the Parties. Except as
provided in Schedule W (‘Intellectual Property Rights’), SITA SC and/or
SITA INC, as applicable, shall fund the full cost of developing a SITA
Specific Product/Service. Equant shall fund the full cost of developing
any modules as described in Schedule W (‘Intellectual Property Rights’).
	 
	(d)	 	Equant shall develop and produce any new SITA Specific Product/Service
requested by SITA SC and/or SITA INC [*], with such development and
production to take place promptly in accordance with the development
document referred to in clause 4.3(c) upon receipt of an adequate funding
commitment from SITA SC or SITA INC that is

	 	 	 
	

	Services Agreement	4	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	satisfactory to Equant. The Parties concerned shall agree the Service
Charges to be included in the Price Books and the Service Levels (if any)
to be included in the Service Levels Schedule in respect of such SITA
Specific Product/Service. Equant shall support any new SITA Specific
Product/Service for the corresponding prices set out in the Price Books.
	 
	(e)	 	Equant shall not market any SITA SC Specific Product/Service or
substantially similar versions thereof to a customer other than SITA SC,
SITA INC, or one of the SITA Group Companies. In the event that Equant
desires to market any SITA Specific Product/Service, or a substantially
similar product or service, to any customer other than SITA SC, one of the
SITA Group Companies, or SITA INC, then:

	 	(i)	 	in the event that Equant desires to offer such SITA Specific
Product/Service, or a substantially similar product or service, to
one or more specific customers (but not generally across its
customer base), then the Parties concerned shall negotiate in good
faith to determine the fees to be paid by Equant to SITA SC or SITA
INC, as appropriate, in respect of the use of such SITA Specific
Product/Service; and
	 
	 	(ii)	 	in the event that Equant desires to offer such SITA Specific
Product/Service, or a substantially similar product or service, to
its customers generally as a standard product or service, then
clause 4.3(f) shall apply.

	(f)	 	Equant may at any time during the Term elect in its sole and absolute
discretion to market a SITA Specific Product/Service, or a substantially
similar product or service, as a standard product or service across its
customer base. If Equant makes such an election then the following shall
apply:

	 	(i)	 	if Equant makes such election within the first six (6) months
following the date that Equant first made the SITA Specific
Product/Service available to SITA SC, the SITA Group Companies, or
SITA INC (regardless of whether SITA SC, the SITA Group Companies
and/or SITA INC actually marketed or sold such SITA Specific
Product/Service on such date), then Equant shall refund to SITA SC
and/or SITA INC, as the case may be, [*] of development
that was paid by SITA SC and/or SITA INC. Equant may not thereafter
adjust the Service Charges in respect of such SITA Specific
Product/Service to recover such refunded [*]; and
	 
	 	(ii)	 	if Equant makes such election after the first six (6) months
following the date that Equant first made the SITA Specific
Product/Service available to SITA SC, the SITA Group Companies, or
SITA INC (regardless of whether SITA SC, the SITA Group Companies
and/or SITA INC actually marketed or sold such SITA Specific
Product/Service on such date), then at the sole and absolute
discretion of SITA SC or SITA INC, as appropriate, either:

	 	(A)	 	Equant shall refund to SITA SC and/or SITA
INC, as the case may be, [*] of development that
was paid by SITA SC and/or SITA

	 	 	 
	

	Services Agreement	5	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 		 	INC. The Parties concerned shall thereafter agree to
adjust the Service Charges in respect of such product to
reflect the status of such product as a Generic
Product/Service rather than a SITA Specific
Product/Service, with such adjusted Service Charges to be
effective as of twelve (12) months after the date upon
which Equant makes such election. The Parties anticipate
that the Service Charges for such product as a Generic
Product/Service would be higher than the Service Charges
for such product as a SITA Specific Product/Service. Such
adjusted Service Charges shall be subject to this
Agreement (eg., annual adjustments, benchmarking, most
favoured customer pricing, Unit Cost reduction guarantees,
etc.) as other Service Charges; or

	 	(B)	 	Equant shall refund to SITA SC and/or SITA
INC, as the case may be, [*] of development that was paid by SITA SC and/or SITA
INC. In this instance, the Service Charges in respect of
such product shall not be adjusted to reflect the status of
such product as a Generic Product/Service. Such Service
Charges shall continue to be subject to this Agreement (eg.,
annual adjustments, benchmarking, most favoured customer
pricing, Unit Cost reduction guarantees, etc.) as other
Service Charges.

	 	 	Upon the receipt by SITA SC and/or SITA INC (as appropriate) of the
refund contemplated by clause 4.3(f)(i) or clause 4.3(f)(ii), as
applicable, the Price Books shall be amended to include such SITA
Specific Product/Service as a Generic Product/Service.
	 
	(g)	 	Intellectual Property Rights arrangements in respect of Generic
Products/Services and SITA Specific Products/Services are set out in
Schedule W (‘Intellectual Property Rights’).
	 
	4.4.	 	Access to Product Marketing Functions

SITA SC, the SITA Group Companies, and SITA INC shall have full access to and
support from Equant’s product speciality, development and management functions
(eg., product marketing functions) to provide advice and support for SITA SC’s
marketing of Generic Products/Services and SITA Specific Products/Services to
customers of the SITA Group Companies and customers of SITA INC.

	5.	 	NETWORK, NETWORK PLANNING AND NETWORK EXPANSION
	 
	5.1.	 	Continuity of Network Services Worldwide
	 
	(a)	 	Equant will ensure and provide continuity of Network Services [*] in all Countries and locations where Network Services are
provided to customers of the SITA Group Companies by or on behalf of SITA
SC (or by or on behalf of any SITA Group Company) as at the Effective Date
of this Agreement. For the purposes of this clause
5.1(a), the term ‘continuity of Network Services’ refers only to product
features and the

	 	 	 
	

	Services Agreement	6	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	geographic scope of the Network, and does not refer to
performance issues, which are addressed elsewhere in this Agreement.
Equant shall not make any proposed change, alteration, variation or take
any action which is likely to result in a reduction in or negatively
affect the functionality (meaning significant features and capability),
coverage or capillarity of the Network Services (any such proposed
change, alteration, variation or action, a ‘Proposed Action’), except as
provided in this clause 5.1.
	 
	(b)	 	Equant shall provide written notice to SITA SC, at least sixty (60) days
prior to the proposed implementation date of any Proposed Action, unless
such Proposed Action is required to comply with Law and Equant is not able
to provide such written notice at least sixty (60) days in advance, in
which case Equant shall promptly provide notice (and in no event more than
five (5) Business Days after Equant becomes aware that an action is
required to comply with Law).
	 
	(c)	 	The prior, written consent of SITA SC, such consent to be granted in the
sole and absolute discretion of SITA SC, is required in respect of any
Proposed Action by Equant if:

	 	(i)	 	Equant proposes relocating a
point of presence of the Network [*];
	 
	 	(ii)	 	Equant proposes to discontinue use of a point of presence of
the Network and relocate the Network Services provided through such
point of presence to another point of presence of the Network [*];
	 
	 	(iii)	 	Equant proposes relocating a Network point of presence that
is located at an airport; or
	 
	 	(iv)	 	Equant proposes to discontinue use of a point of presence of
the Network that is located at an airport and relocate the Network
Services provided through such point of presence to another point of
presence of the Network that is not located at the same airport.

	(d)	 	In the event that no consent is required to be obtained by Equant
pursuant to clause 5.1(c), then:

	 	(i)	 	Equant shall bear [*] incurred in relocating the
affected point of presence;
	 
	 	(ii)	 	Equant shall bear [*] in respect of tail circuits incurred by the SITA
Group Companies or their customers as a result of the Proposed
Action; and
	 
	 	(iii)	 	if (a) the Proposed Action will cause or is likely to cause
a material increase in the net costs to SITA SC or a material
increase in the aggregate net costs of SITA SC’s customers, or (b)
if the Proposed Action will cause or is likely to cause a
significant adverse impact on the levels of service provided to SITA
SC’s customers, then SITA SC and Equant shall meet at least
thirty (30) days

	 	 	 
	

	Services Agreement	7	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	prior to the implementation of the Proposed
Action to discuss and agree in good faith the compensation or
other action to alleviate the impact of the Proposed Action on
SITA SC and/or its customers.

	(e)	 	In the event that consent is required to be obtained by Equant pursuant
to clause 5.1(c), then SITA SC and Equant shall meet at least thirty (30)
days prior to the desired implementation date of the Proposed Action to
discuss and agree in good faith to determine the allocation of the costs
to be borne by the Parties in connection with the Proposed Action.
	 
	(f)	 	In the event that Equant submits a written notice to SITA SC pursuant to
clause 5.1(b) indicating that it intends to implement a Proposed Action,
SITA SC shall respond in writing to such request within thirty (30) days
of receipt thereof. SITA SC may have one thirty (30) day extension of
this deadline by providing written notice of such extension to Equant
prior to the deadline, except in the instance that the Proposed Action is
required by Law and to be completed within such thirty (30) day period.
Further extensions of such deadline will be subject to the Consent of
Equant. If no SITA SC response to such an Equant request is received by
the applicable deadline, Equant may give final written notice to the SITA
SC Representative that no response to Equant’s request has been received
from SITA SC. If SITA SC makes no written response to such final notice
within seven (7) days of the receipt thereof, Equant’s request to
implement the Proposed Action shall be deemed to be approved by SITA SC.
	 
	5.2.	 	Network Planning Committee
	 
	(a)	 	Within fifteen (15) days following the Effective Date, the Parties will
establish a Network Planning Committee. The composition and procedures of
the Network Planning Committee are set forth in Schedule D
(‘Network
Planning Committee Mandate’) and at all times the Network Planning
Committee shall act and be governed in accordance with Schedule D. The
first meeting of the Network Planning Committee shall be convened within
thirty (30) days following the Effective Date.
	 
	(b)	 	[*] Equant shall deliver a Network Strategic Plan and a
Network Short Term Development Plan to the Network Planning Committee at
least seven (7) days prior to each regular meeting of the Network Planning
Committee.
	 
	5.3.	 	Network Modification Funding
	 
	(a)	 	Subject to the specific exceptions set forth herein relating to
investment for specific Air Transport Community products and services as
provided in clause 5.3(c)(ii), Equant shall be responsible for funding the
acquisition of all Network assets used in the operation and delivery of
Generic Products/Services (‘Generic Network Assets’). Equant shall also
fund the development and maintenance of Generic Network Assets as
necessary to support the forecast connections and traffic (including that
contained in the SITA Group Companies’ Network Activity Forecast). In any
event, SITA SC shall not be responsible for funding expansions or
modifications to the Network, the acquisition of any Network

	 	 	 
	

	Services Agreement	8	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	assets, or the maintenance or routine development of the Network except
as provided in clause 5.3(e).
	 
	(b)	 	Equant shall fund and implement expansions and modifications of the
Network (including the acquisition of Generic Network Assets) relating to
(i) expansions or modifications of the Network included in a Network
Implementation Action recommended by the Network Planning Committee that
Equant has accepted in writing, or (ii) a Network Implementation Action
that Equant has included in a Network Short Term Development Plan that
Equant delivers to the Network Planning Committee pursuant to clause
5.2(b).
	 
	(c)	 	Equant in exceptional cases may elect not to accept a Network
Implementation Action that the Network Planning Committee recommends (or,
if the Network Planning Committee is unable to recommend a Network
Implementation Action but SITA SC nevertheless requests Equant to fund
such Network Implementation Action) for expansion or modification of the
Network, if Equant demonstrates that the expected sales (to the SITA Group
Companies and to other Equant customers) would not be reasonably
sufficient to permit Equant to recover the full costs plus a reasonable
rate of return of the proposed expansion or modification of the Network
during the useful life of the physical assets necessary for such Network
expansion or modification. If Equant makes such demonstration, then both
Parties shall submit to the Network Planning Committee their anticipated
volume forecast activity in respect of such Network Implementation Action for the first twelve (12) months after such
Network Implementation Plan would be implemented, and:

	 	(i)	 	if for such twelve (12) month period, the volume activity of
Equant, its Affiliates and its customers (the ‘Equant Activity’)
which is forecasted represents [*] (‘Total
Activity’), then Equant shall fund and implement such Network
Implementation Action; or
	 
	 	(ii)	 	if for such twelve (12) month period, the Equant Activity is
[*] of the Total Activity, then SITA SC
shall fund, and Equant shall implement, the Network Implementation
Action.

	(d)	 	In all cases other than those referred to in clause 5.3(c), Equant shall
fund such Network Implementation Action and its full integration into the
Network.
	 
	(e)	 	If SITA SC is required to fund the Network Implementation Action pursuant
to clause 5.3(c)(ii), then unless the Parties elect to vary the following
arrangement in a specific business plan:

	 	(i)	 	SITA SC shall fund the expansion of, or modification to, the
Network or the Network Implementation Action (as applicable) and
its interconnection with or integration into the Network (as
appropriate). Equant shall implement and interconnect or fully
integrate (as appropriate) such expansion of, or modification to,
the Network or such Network Implementation Action into the

	 	 	 
	

	Services Agreement	9	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	Network at cost upon receipt of an adequate funding commitment
from SITA SC that is satisfactory to Equant;
	 
	 	(ii)	 	Each expansion or modification to the Network shall conform
with Equant’s Network engineering and quality standards;
	 
	 	(iii)	 	Unless SITA SC and Equant agree otherwise:

	 	(A)	 	SITA SC shall retain title to the Network
assets necessary to implement such expansion of, or
modification to, the Network or such Network Implementation
Action (as applicable) and, if any Software is licensed in
respect of such Network assets, it will be licensed in SITA
SC’s name.

	 	(B)	 	All contracts (including rights to tail
circuits) necessary to implement such expansion of, or
modification to, the Network or such Network Implementation
Plan, shall be in SITA SC’s name; and

	 	(C)	 	Equant shall operate, manage and maintain the
facilities concerned;

	 	(iv)	 	If SITA SC has funded an expansion or modification to the
Network pursuant to clause 5.3(e)(i), Equant and SITA SC shall
negotiate in good faith and agree the Service Charges to be paid by
the SITA Group Companies in respect of Services that utilise any
such expansion of, or modification to, the Network; it being
understood that if at any time the actual Equant Activity is [*] of the actual Total Activity in respect of
such expanded or modified facilities, then upon agreement of the
Service Charges to be charged to the SITA Group Companies in respect
of the Services that utilise such expansion of, or modification to,
the Network (if applicable prices are not already set out in the
Price Books), Equant shall acquire any physical assets acquired by
SITA SC pursuant to this clause 5.3(e) at their net book value;
	 
	 	(v)	 	if Equant has, in its forecast provided pursuant to clause
5.3(c), indicated that it would not use the expanded or modified
facilities at all during the first twelve (12) month period and
either (i) Equant requests to use, or to provide the use of, such
expansion of, or modification to, the Network to serve any customer
other than SITA SC, SITA INC, or a SITA Group Company within the
initial twelve (12) months after such expanded or modified
facilities are installed, or (ii) Equant in fact uses such expanded
or modified facilities without requesting such use, then (upon
agreement of the Service Charges to be charged to the SITA Group
Companies in respect of the Services that utilise such expansion of,
or modification to, the Network, if applicable prices are not
already set out in the Price Books) Equant shall acquire any
physical assets acquired by SITA SC pursuant to this clause 5.3(e)
at their net book value.
	 
	 	(vi)	 	At Equant’s option at any time and upon agreement of the
Service Charges to be charged to the SITA Group Companies in respect
of Services that utilise such expansion of, or modification to, the
Network, Equant may acquire any physical assets acquired by SITA SC
pursuant to this clause 5.3(e) at their net book value.

	 	 	 
	

	Services Agreement	10	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	5.4.	 	Step-In Rights
	 
	(a)	 	In case of Equant’s failure to fund a Network Implementation Action in a
way that constitutes a breach of this Agreement, SITA SC will have the
option to take such steps as are necessary in the reasonable business
judgment of SITA SC (including engaging substitute services provided by a
third party) to provide and maintain its service to the Air Transport
Community (other than those actions described in clause 5.4(b)).
	 
	(b)	 	In the case of Equant’s failure to fund a Network Implementation Action
in a way that constitutes a material breach of this Agreement, SITA SC
will have the option to take such steps temporarily to recover operational
control of sufficient Network Resources to provide and maintain its
service to the Air Transport Community provided that either:

	 	(i)	 	SITA SC first escalates the matter to the Executive Committee
for determination of whether Equant’s failure to fund a Network
Implementation Action is a material breach of this Agreement. The
Executive Committee shall promptly meet for the purpose of
determining whether Equant’s failure to fund such Network
Implementation Action is a material breach of this Agreement, with
such determination to be made within fourteen (14) days of the
effective date of SITA SC’s written notice to Equant. If the
Executive Committee has not made such a determination within such
fourteen (14) day period, then either Party may escalate the matter
to the chief executive officer of Equant and the Director General of
SITA SC for resolution. If no resolution is reached by such chief
executive officer and Director General within seven (7) days, then
SITA SC may initiate the formal dispute resolution procedure to
determine whether such failure to fund is a material breach of this
Agreement, which dispute resolution procedure shall take place on an
expedited basis with the arbitrator empowered only to determine
whether such failure to fund is a material breach of this Agreement.
Following such determination, the arbitration proceedings will be
recessed pending possible resumption of such proceedings pursuant to
clause 5.4(g); or
	 
	 	(ii)	 	such action has been agreed by SITA SC and Equant.

	(c)	 	If SITA SC determines in its reasonable business judgment that the delay
caused by pursuing the formal dispute resolution procedure described in
clause 5.4(b)(i) will be too long in light of the relevant circumstances
affecting the SITA Group Companies and/or their respective customers, then
SITA SC may unilaterally take steps temporarily to recover operational
control of sufficient Network Resources to provide and maintain its
service to the Air Transport Community. In this case:

	 	(i)	 	Equant will permit SITA SC to take such steps;
	 
	 	(ii)	 	if the arbitrator determines that the failure to fund was not
a material breach of this Agreement, then the arbitrator shall also
be empowered to award either Equant or SITA SC damages or other
remedies permitted under this Agreement; and

	 	 	 
	

	Services Agreement	11	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	if the arbitrator determines that the failure to fund was a
material breach of this Agreement, then (A) the arbitrator shall
also be empowered to award either Equant or SITA SC damages or other
remedies permitted under this Agreement; and (B) following such
determination the arbitration proceedings will be recessed pending
possible resumption of such proceedings pursuant to clause 5.4(g).

	(d)	 	In the event that SITA SC elects to exercise the option set out in clause
5.4(a) or clause 5.4(b), then, SITA SC shall give Equant two (2) Business
Days written notice of its election, specifying the breach, and indicating
the option that it intends to exercise. If Equant has not provided SITA
SC evidence that Equant has remedied the breach to SITA SC’s reasonable
satisfaction within such two (2) Business Day period, then SITA SC shall
be entitled:

	 	(i)	 	to exercise the elected option
(the ‘Step-In Rights’);
	 
	 	(ii)	 	to require that any Network assets provisioned by SITA SC and
any changes, alterations, variations or actions taken (including
substitute services provided by a third party) by SITA SC in order
to remedy such breach or in connection with the exercise of the
Step-In Rights be implemented and either integrated into or
interconnected with the Network forthwith by Equant, as the Parties
may agree. Equant shall promptly do so at no cost to either SITA SC
or SITA INC in respect of such implementation, integration or
interconnection activity;
	 
	 	(iii)	 	to recover any costs and expenses incurred by SITA SC in
exercising the Step-In Rights from Equant as direct losses; and
	 
	 	(iv)	 	to obtain such remedies as may be available to it either
under this Agreement or otherwise in equity or at law, including
withholding from payment to Equant any costs SITA SC incurs in
exercising the Step-In Rights, not to exceed an aggregate amount
withheld of the total Service Charges (not including Pass-Through
Expenses) invoiced to the SITA Group Companies in respect of the
most recent three (3) full Billing Periods.

	(e)	 	In the event that SITA SC exercises the Step-In Rights set out in clause
5.4(b), then:

	 	(i)	 	SITA SC and Equant must both use commercially reasonable
endeavours to ensure seamless network operations of the portion of
the Network of which SITA SC has temporarily assumed operational
control with the remainder of the Network;
	 
	 	(ii)	 	Equant shall be relieved from maintaining Service Levels in
respect of those portions of the Network of which SITA SC has
recovered operational control (and Equant shall not be liable to pay
Service Credits in respect of Service Level Failures in respect of
such portions of the Network) in respect of the period commencing
from and including the date on which SITA SC recovered operational
control of the Network until and including the date upon which SITA
SC returns control of the Network to Equant;

	 	 	 
	

	Services Agreement	12	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	failures to meet Service Levels in respect of portions of
the Network of which Equant retains operational control shall not be
Service Level Failures if such failures are caused by SITA SC
activity in respect of those portions of the Network of which it has
assumed operational control (and Equant shall not be liable to pay
Service Credits in respect of such failures) in respect of the
period commencing from and including the date upon which SITA SC
recovered operational control of such portions of the Network until
and including the date upon which SITA SC returns operational
control of such portions of the Network to Equant;
	 
	 	(iv)	 	SITA SC shall continue to provide Network Services to its own
customers as well as to SITA INC and Equant and to the customers of
either SITA INC and Equant (including both customers existing at the
time that SITA SC exercises the Step-In Rights and customers that
are added thereafter) using those portions of the Network of which
it has assumed temporary operational control. After exercising the
Step-In Rights, SITA SC shall not knowingly take any step that will
cause the Service Levels provided to SITA SC, the SITA Group
Companies, SITA INC or Equant, or the customers of any of them, to
deteriorate. After exercising the Step-In Rights related to the
option set out in clause 5.4(b), SITA SC shall not exercise any
preferential treatment in respect of the provision of Network
Services (including Service Levels and other indicia of quality of
service) to SITA SC, the SITA Group Companies or their customers in
comparison to the provision of Network Services to SITA INC or
Equant or their respective customers;
	 
	 	(v)	 	SITA SC and/or SITA INC, as appropriate, shall continue to
pay Service Charges in respect of the Services that are provided
using any portion of the Network in respect of which SITA SC has
recovered temporary operational control. Equant shall pay or
reimburse all costs incurred by SITA SC in exercising the Step-In
Rights during the period commencing from and including the date on
which SITA SC recovered operational control of such portion of the
Network until and including the date upon which SITA SC returns
control of such portions of the Network to Equant; and
	 
	 	(vi)	 	the SITA SC Representative and the SITA INC Representative
must, within ten (10) days of having recovered operational control
of any portion of the Network, meet with the Equant Project
Executive to plan the return of complete operational control of such
portion of the Network to Equant.

	(f)	 	Equant shall (and shall cause that its sub-contractors shall) co-operate
fully with SITA SC and any third party engaged by SITA SC to facilitate
the exercise of the Step-In Rights and:

	 	(i)	 	Equant shall permit the use of (or take any steps necessary
to cause the relevant persons to permit SITA SC to be able to use)
any licenses or sublicenses as are reasonably required by SITA SC or
any third party acting on behalf of SITA SC; and

	 	 	 
	

	Services Agreement	13	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ii)	 	Equant shall afford access to any premises, equipment,
documents, information or other items as are reasonably required by
SITA SC or any third party acting on behalf of SITA SC.

	(g)	 	If arbitration proceedings were convened to determine whether SITA SC was
entitled to exercise the Step-In Rights, then any dispute arising in
respect of the exercise of such rights by SITA SC will be referred to the
same arbitration proceedings (if not resolved through informal dispute
resolution). Either Equant or SITA SC may at any time elect to resume any
arbitration proceedings recessed pursuant to clause 5.4(b)(i) or clause
5.4(c)(iii). In such resumed arbitration proceedings, the Parties may
make use of, and the arbitrator may take regard of, evidence introduced by
either Party in the earlier arbitration.
	 
	5.5.	 	Network Operational Performance Committee

Within fifteen (15) days following the Effective Date, the Parties will
establish a Network Operational Performance Committee. The composition and
procedures of the Network Operational Performance Committee are set forth in
Schedule E (‘Network Operational Performance Committee Mandate’) and at all
times the Network Operational Performance Committee shall act and be governed
in accordance with Schedule E. The first meeting of the Network Operational
Performance Committee shall be convened within thirty (30) days following the
Effective Date.

	6.	 	SERVICE PROCEDURES
	 
	6.1.	 	Annual Review

In addition to the continuing review of the strategic relationship of the
Parties conducted by the Executive Committee, the chief executive officer of
Equant and the Director General of SITA SC will meet annually to review the
overall operation of this Agreement. The SITA SC Representative and Equant
Project Executive shall attend such meeting. For so long as SITA INC is
Controlled by the SITA INC Foundation, the Director General of SITA SC will
represent the interests of SITA INC in this annual review. If SITA INC is no
longer Controlled by the SITA INC Foundation, the chief executive officer of
Equant and the chief executive officer of SITA INC will meet separately to
conduct a review of the overall operation of this Agreement with respect to the
relationship between Equant and SITA INC.

	6.2.	 	Implementation of Approved Executive Committee Resolutions

Each Party will cooperate with each other Party to implement any resolutions
that have been approved by the Executive Committee (including, as necessary,
any amendment to this Agreement and the agreement of any modified Service
Charges) resulting from such approved resolution.

	 	 	 
	

	Services Agreement	14	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	6.3.	 	Co-operation

The Parties will enforce their rights and meet their obligations under this
Agreement in accordance with applicable Law and, as legally possible and
commercially reasonable, in a way that improves Cost Efficiencies.

	6.4.	 	Transfer of Global One Contracts with the Air Transport Community
	 
	(a)	 	In relation to contracts existing between Global One and customers in the
Air Transport Community which are transferred to Equant or that Equant
assumes as a result of the merger between Equant and Global One (a)
details of which have been disclosed by France Telecom to SITA SC prior to
the Effective Date, and (b) all other such contracts with annual revenues
exceeding one hundred thousand U.S. Dollars ($100,000) per annum (together, the ‘Global One ATC
Contracts’), and notwithstanding the other provisions of this clause 6.4,
Equant will cooperate fully with SITA SC with a view to assigning,
novating or otherwise transferring the Global One ATC Contracts to SITA SC
at the earliest possible opportunity. Such cooperation will include joint
communications or customer visits in order to explain to each such
customer the advantages of transferring its Global One ATC Contracts to
SITA SC and joint efforts to obtain relevant consents to such assignment,
novation or transfer. No Global One ATC Contract will be assigned,
novated or otherwise transferred to SITA SC unless the customer concerned
consents to such assignment, novation or transfer.
	 
	(b)	 	If Equant or Global One is permitted to do so under existing
confidentiality obligations with the customers concerned, Equant shall
promptly disclose to SITA SC the Global One ATC Contracts. If Equant is
not permitted to disclose a Global One ATC Contract to SITA SC due to an
existing confidentiality obligation with a customer, then Equant shall
approach (or request that Global One approach) such customer and request
such customer’s approval either (i) to disclose to SITA SC the Global One
ATC Contract concerned, or (ii) to disclose to SITA SC the relevant
pricing and other commercial terms of service included in such Global One
ATC Contract.
	 
	(c)	 	SITA SC reserves the right not to proceed with the transfer of a Global
One ATC Contract pursuant to this clause 6.4 if SITA SC is unwilling or
unable to provide services to the customer concerned pursuant to the
relevant Global One ATC Contract.
	 
	6.5.	 	Operations and Procedures Manual
	 
	(a)	 	Within six (6) months after the Effective Date, Equant and SITA SC will
cooperate jointly to develop an Operations and Procedures Manual. The
Operations and Procedures Manual will be developed based upon the
processes, targets and operational guidelines with respect to the
operational interaction agreed by the Parties prior to the Effective Date,
as set out in the various Attachments to Schedule T (‘Operations and
Procedures Manual’).
	 
	(b)	 	After each section of the Operations and Procedures Manual is developed,
SITA SC and Equant will each approve such section, which approval will not
be unreasonably withheld, conditioned or delayed. After each section of the Operations
and Procedures

	 	 	 
	

	Services Agreement	15	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	Manual has been so approved, Equant shall provide the
Services, and the Parties shall otherwise act, in compliance with such
section of the Operations and Procedures Manual and such section of the
Operations and Procedures Manual will replace and supersede the
corresponding Attachment to Schedule T (‘Operations and Procedures
Manual’), which will thereafter have no contractual significance.
	 
	(c)	 	Until such processes, targets and operational guidelines agreed in each
of the Attachments to Schedule T (‘Operations and Procedures Manual’) have
been incorporated into the agreed Operations and Procedures Manual or
otherwise incorporated into this Agreement (eg., by an amendment to the
Price Books), Equant shall provide the Services, and the Parties shall
otherwise act, in compliance with the commercial principles set out in the
Attachments to Schedule T (‘Operations and Procedures Manual’).
	 
	(d)	 	Failure to meet any of the operational targets, to comply with any of the
processes or procedures, or otherwise to comply with any of the other
requirements set out in the Attachments to Schedule T (‘Operations and
Procedures Manual’) (or as set out in the Operations and Procedures Manual
after such processes and services are incorporated therein pursuant to
clause 6.5(a)) will not be a breach of contract by Equant. The only
remedies for such failures will be the definition of action plans and
escalations to the Product Council, Network Planning Committee or Network
Operational Performance Committee (or, if necessary, to the Executive
Committee) or to the appropriate parts of Equant management (if
specified), unless expressly otherwise agreed by the Parties.
Notwithstanding the foregoing, nothing in this clause 6.5(d) shall
preclude SITA SC and/or SITA INC from relying upon any such failure as
evidence of Equant’s failure to comply with a term or condition of the
Services Agreement other than Schedule T (‘Operations and Procedures
Manual’).
	 
	6.6.	 	Call Centres

Services in respect of call centres will be provided in accordance with
Schedule U (‘Call Centres’).

	6.7.	 	Outsourcing Support

Outsourcing support will be provided in accordance with Schedule V
(‘Outsourcing Support’),

	6.8.	 	Type A Support

Type A support will be provided in
accordance with Schedule X (‘Type
A Support’).

	6.9.	 	Class A Addresses Space

Class A addresses space will be administered in
accordance with Schedule Y (‘Class A
Addresses’).

	 	 	 
	

	Services Agreement	16	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	7.	 	EXCLUSIVITY AND NON-SOLICITATION
	 
	7.1	 	Effective Period
	 
	(a)	 	The effective period of the provisions set out in this clause 7 shall
commence from and including the Effective Date and shall continue in
effect for a period of five (5) years (the ‘Effective Period’) unless
terminated earlier in accordance with the terms of this Agreement or
extended as agreed by the Parties.
	 
	(b)	 	Not later than six (6) months prior to the end of the Effective Period,
the Parties shall discuss in good faith with a view to agreeing whether,
at the end of the Effective Period, the provisions of this clause 7 are to
be renewed.
	 
	7.2	 	Exclusive Provider of Network Services
	 
	(a)	 	During the Effective Period, Equant will be the exclusive supplier of
Network Services to SITA SC and the SITA Group Companies, and SITA SC and
the SITA Group Companies will not purchase Network Services from any
provider of Network Services other than Equant (or one of Equant’s
Affiliates) that is a competitor of Equant, without the express written
authorisation of Equant, which Equant in its sole and absolute discretion
may withhold or condition but not delay, except that:

	 	(i)	 	SITA SC may enter into outsourcing arrangements with a
customer that includes the temporary management of that customer’s
then-existing Network Services that are provided by a provider other
than Equant or one of Equant’s Affiliates, provided that:

	 	(A)	 	SITA SC must provide prompt written notice to
Equant pursuant to clause 30.2 that it is engaging in such
activity;

	 	(B)	 	SITA SC shall not migrate Network Services
already provided by Equant to the non-Equant arrangements and
shall not establish new Network Services under such
non-Equant arrangements (other than extensions and additions
to the Network Services that are required by the specific
outsourcing customer concerned); and

	 	(C)	 	SITA SC and Equant shall co-operate and use
commercially reasonable efforts to migrate such Network
Services to the Network as soon as commercially and
operationally feasible following the date that SITA SC enters
such outsourcing arrangements.

	 	(ii)	 	If a SITA SC customer or the Air Transport Community has a
specific requirement for a product or service that Equant is unable
to provide (or that Equant is unable to provide within a particular
Country) within the time frame required by such customer or the Air
Transport Community, then SITA SC may procure such product or
service from a Network Services provider other than Equant (or one
of Equant’s Affiliates), provided that:

	 	 	 
	

	Services Agreement	17	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(A)	 	SITA SC raises such requirement to the Product
Council promptly after it becomes aware of such requirement,
if necessary requesting an ad hoc meeting of the Product
Council as permitted by Schedule C (‘Product Council
Mandate’), it being understood that the Product Council must
determine at such meeting whether Equant can provide a
product or service that meets such requirement within the
time frame required by such customer or the Air Transport
Community. If the Product Council determines that Equant
cannot provide a product or service to meet such requirement
within such timeframe, then Equant shall notify SITA SC in
writing within ten (10) Business Days of such Product Council
meeting of the date by which Equant reasonably expects to be
able to offer a product or service that meets such
requirement;

	 	(B)	 	If the Product Council determines that Equant
cannot provide the relevant product or service as required
pursuant to clause 7.2(a)(ii)(A) above, SITA SC may promptly
provide written notice to Equant of its requirement to
procure such product or service from a third party Network
Services provider;

	 	(C)	 	Promptly after delivery of the written notice
referred to in clause 7.2(a)(ii)(B) above, Equant and SITA SC
jointly (1) determine a procurement strategy for such product
or service; (2) identify one or more potential providers of
such product or service; (3) conduct a procurement process
pursuant to the agreed procurement strategy; and (4)
negotiate and execute an appropriate contract with a third
party provider for the provision of such product or service.
Equant and SITA SC will reasonably agree on which of them (or
both) will be parties to such contract;

	 	(D)	 	In negotiating the contract referred to in
clause 7.2(a)(ii)(C), the Parties have due regard for (1) the
date that Equant expects that the Network will be able to
offer the product or service concerned; and (2) the
commercial and technical requirements of Equant, SITA SC, and
the concerned member(s) of the Air Transport Community;

	 	(E)	 	The product or service concerned is procured as
a Pass-Through Expense. Equant shall manage the provisioning
and operation of the product or service concerned, and may
charge the management fee set out under clause 18.6 and
Schedule R (‘Tail Circuit Management’) in respect of Equant’s
management of Pass-Through Expenses;

	 	(F)	 	The fees paid to all such third party Network
Services providers in respect of any given Billing Period, in
the aggregate, to not [*] of the Service
Charges payable to Equant for Network Services in respect of
the same Billing Period without the written Consent of
Equant;

	 	 	 
	

	Services Agreement	18	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(G)	 	SITA SC migrates such customer requirement to a
suitable Equant product or service within a reasonable period
after such Equant product or service is made available (it
being understood that if Equant produces such product or
service significantly prior to the date that it had earlier
informed SITA SC pursuant to clause 7.2(a)(ii)(A) such
product or service would be available, that a ‘reasonable
period’ shall be determined by reference to the term of the
contract executed with the third-party Network Services
provider in compliance with clause 7.2(a)(ii)(D)).

	 	(iii)	 	SITA INC may enter into such agreements and arrangements,
and take the actions set out in clause 7.3, subject to the
limitations and other provisions set out therein.
	 
	 	(iv)	 	With respect to any proposed customer contract for which
domestic data network connections in the Benchmarking Region [*] (‘[*] Domestic Contract’) SITA SC will have the
right to purchase, on a case-by-case basis, the domestic data
network requirements for such contracts in [*] (‘[*] Requirements’) from a third party [*] network provider (a
‘[*] Provider’) subject to the following conditions:

	 	(A)	 	SITA SC shall first deliver written notice to
Equant outlining its [*] Requirements and the time frame
associated with the bid for [*] Requirements. Equant has
the right within thirty (30) days of receipt of such notice
(or such shorter period as is necessitated by the time frame
associated with the bid) to propose terms and conditions to
SITA SC upon which Equant will agree to provide such [*]
Requirements. If Equant determines not to submit a proposal
or has not submitted a proposal within such 30 day period (or
such shorter period), or SITA SC determines that Equant’s
proposal is not competitive, SITA SC may solicit bids for
such [*] Requirements from [*] Providers, provided however that
one such [*] Provider solicited will be Equant’s major [*] as at the Effective Date (the ‘Preferred
Supplier’).

	 	(B)	 	If Equant has submitted a proposal with respect
to such [*] Requirements, then, before accepting any firm
offer submitted in such bid process by a [*] Provider (each, a
‘[*] Provider Offer’), SITA SC shall disclose, to the extent
permitted by relevant confidentiality obligations, commercial
arrangements of the lowest priced [*] Provider Offer to Equant
who shall have the right to make a second proposal for such
[*] Requirements within fifteen (15) days (or such shorter
period as is necessitated by the time frame associated with
the bid). If Equant’s second proposal complies with clause
7.2(a)(iv)(D), then SITA SC has the obligation to accept such
second proposal.

	 	 	 
	

	Services Agreement	19	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(C)	 	If Equant has not submitted a proposal and the
Preferred Supplier has submitted a [*] Provider Offer, then
before accepting any other [*] Provider Offer, SITA SC shall
disclose, to the extent permitted by relevant confidentiality
obligations, commercial arrangements of the lowest priced [*] Provider Offer to the Preferred Supplier, who shall have the
right to make a second offer within fifteen (15) days (or
such shorter period as is necessitated by the time frame
associated with the bid). If the Preferred Supplier’s second
offer complies with clause 7.2(a)(iv)(D), then SITA SC has
the obligation to accept such second offer.

	 	(D)	 	It is expressly agreed that if either Equant’s
proposal or the Preferred Supplier’s [*] Provider Offer is
[*] of the lowest priced [*] Provider
Offer received by SITA SC in the bidding process described
above then SITA SC must select either Equant or the Preferred
Supplier.

	 	(E)	 	If neither Equant nor the Preferred Supplier
has submitted an offer, or SITA SC does not accept either
Equant’s proposal or the Preferred Supplier’s [*] Provider
Offer pursuant to clause 7.2(a)(iv)(A), clause 7.2(a)(iv)(B)
or clause 7.2(a)(iv)(C), then SITA SC shall have the right to
purchase its [*] Requirements from the [*] Provider submitting
the lowest priced [*] Provider Offer. Equant shall have the
opportunity to be the contracting party to the contract with
such [*] Provider. All products or services under such
contract shall be procured as a Pass-Through Expense.

	 	(F)	 	If SITA SC is obtaining its [*] Requirements
from a [*] Provider pursuant to this clause 7.2(a)(iv), Equant
shall manage the provisioning and operation of the product
and/or service concerned, and, unless such [*] Provider is the
Preferred Supplier, Equant may charge a [*] management fee and SITA SC will be responsible for the
incremental costs of interconnecting and interoperation with
the [*] Provider’s network. If SITA SC is obtaining its [*] Requirements from the Preferred Supplier, Equant shall not be
entitled to receive a management fee and shall bear all costs
of interconnection and interoperation.

	 	(G)	 	In each case, Equant shall provide support for
the interconnection and interoperation of the Network with
the network of whichever [*] Provider is chosen by SITA SC.

	 	(H)	 	The [*] Provider Offer disclosed by SITA SC to
Equant pursuant to clause 7.2(a)(iv)(B) may be subject to an
independent audit (at the request of either SITA SC or
Equant) in order to compare the price/quality of the [*] Provider Offers.

	 	 	 
	

	Services Agreement	20	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(I)	 	SITA SC’s right to solicit bids from an
alternate [ * ] Provider for its [ * ] Requirements applies to all
new [ * ] Domestic Contracts and renewals of existing [ * ] Domestic Contracts with the exception of the contract in
effect as of the Effective Date with [ * ].

	 	(J)	 	If SITA SC also provides international services
pursuant to such contract with such [ * ] Requirements, SITA SC
will use the Network.

	 	(K)	 	If Equant ceases to have a distribution
relationship with the Preferred Supplier, then clause
7.2(a)(iv)(C) shall no longer apply and SITA SC may select any
[ * ] Providers to enter into the bidding process, subject to
[ * ] test against Equant’s
proposal and compliance with clause 7.2(a)(iv)(F) above.

	(b)	 	From the date on which SITA INC is no longer Controlled by the SITA INC
Foundation, the Exclusivity Obligation in respect of SITA INC and its
Controlled Affiliates shall expire on the earliest to occur of:

	 	(i)	 	the fourth anniversary of the date on which the SITA INC
Foundation transferred Control of SITA INC and its Controlled
Affiliates;
	 
	 	(ii)	 	the date that the Exclusivity Obligation expires or is
terminated in respect of SITA SC and the SITA Group Companies; or
	 
	 	(iii)	 	the expiration or termination of this Agreement.

	(c)	 	During the Term, the Network Services which are provided by Equant to
SITA INC and its Controlled Affiliates shall be provided under all the
terms and conditions of this Agreement, including pricing and Service
Levels.
	 
	(d)	 	In the event that SITA SC or SITA INC, as the case may be, is required to
request approval, authorisation or Consent of Equant, and submits a
written request to Equant (with a copy forwarded to the Equant Project
Executive) for such approval, authorisation or Consent, Equant shall
respond to such request within thirty (30) days of receipt thereof.
Equant may have one thirty (30) day extension of this deadline by
providing written notice of such extension to SITA SC or SITA INC, as
applicable, prior to the deadline. Further extensions of such deadline
will be subject to the Consent of SITA SC or SITA INC, as the case may be.
If no Equant response to such request is received by the applicable
deadline, SITA SC or SITA INC, as applicable, may give final written
notice to Equant (with a copy forwarded to the Equant Project Executive)
that no response to such request has been received from Equant. If Equant
makes no written response to such final notice within seven (7) days of
the receipt thereof, Equant’s express written approval, authorisation or
Consent shall be deemed to have been granted.
	 
	7.3	 	SITA INC Outsourcing or Merger Activity
	 
	(a)	 	Subject to the limitations set out in this clause 7.3, nothing in this
clause 7 shall otherwise be interpreted as precluding SITA INC and/or its
Controlled Affiliates from conducting

	 	 	 
	

	Services Agreement	21	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	their normal business activities (which may include (i) outsourcing a
network which includes provisioning of Network Services from a third
party; or (ii) engaging in any other activity, such as an acquisition of,
equity investment in, a third party) that results in the use of Network
Services of a provider other than Equant or one of Equant’s Affiliates.
	 
	(b)	 	In the event that SITA INC or one of its Controlled Affiliates:

	 	(i)	 	enters into an outsourcing agreement with a customer which
includes the management of that customer’s then-existing Network
Services that are provided by a provider other than Equant or one of
Equant’s Affiliates; or
	 
	 	(ii)	 	acquires or makes an investment in a third party, and as a
result of such activity it acquires then-existing Network Services
that are provided to such third party by a provider other than
Equant or one of Equant’s Affiliates,
	 
	 	 	 	then:

	 	(A)	 	SITA INC must provide prompt written notice
pursuant to clause 30.2 to Equant and to SITA SC that SITA
INC is engaging in such activity;

	 	(B)	 	SITA INC and/or its Controlled Affiliates shall
not migrate Network Services already provided by Equant to
such non-Equant arrangements and shall not establish new
Network Services under such non-Equant arrangements (other
than extensions and additions to the Network Services that
are required by the specific outsourcing customer concerned);
and

	 	(C)	 	SITA INC and/or its Controlled Affiliates and
Equant shall co-operate and use commercially reasonable
efforts to migrate such Network Services to Equant as soon as
commercially and operationally feasible following the date
that SITA INC and/or one of its Controlled Affiliates enters
into such outsourcing arrangements.

	(c)	 	In the event that SITA INC and/or one of its Controlled Affiliates
engages in activity described in clause 7.3(b) above during the applicable
exclusivity period as set out in clause 7.2(a) and clause 7.2(c), then
SITA INC’s Non-Equant Network Services Revenue shall not exceed either:

	 	(i)	 	[ * ] of the combined Overall Revenue of SITA INC and its
Controlled Affiliates and their respective minority-owned affiliated
entities; or
	 
	 	(ii)	 	[ * ] of the Network Services Revenue of the SITA Group
Companies.

	(d)	 	If, as at any semi-annual date of calculation and assessment described in
clause 7.3(h), the value of SITA INC’s Non-Equant Network Services
Revenue exceeds either threshold set out in clause 7.3(c), then:

	 	 	 
	

	Services Agreement	22	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	SITA INC must provide prompt written notice pursuant to
clause 30.2 to Equant and to SITA SC that SITA INC’s Non-Equant
Network Services Revenue exceeds one or both of the thresholds set
out in clause 7.3(c) above (specifying which threshold is exceeded
if only one is exceeded); and
	 
	 	(ii)	 	SITA SC and SITA INC shall have six (6) months commencing
from the semi-annual date of calculation and assessment upon which
either threshold set out in clause 7.3(c) was exceeded (the ‘Remedy
Period’) to take whatever action is deemed to be necessary by SITA
SC and/or SITA INC, as applicable, to bring SITA INC’s Non-Equant
Network Services Revenue into compliance with both thresholds set
out in clause 7.3(c) above.

	(e)	 	If SITA INC fails to bring its Non-Equant Network Services
Revenue into compliance with both thresholds set out in clause 7.3(c)
within the Remedy Period, then the Related Provisions will automatically
terminate.
	 
	(f)	 	If at the end of the Remedy Period SITA INC has not brought the SITA INC
Non-Equant Network Services Revenue into compliance with both thresholds
set out above in clause 7.3(c) above and SITA INC’s Non-Equant Network
Services Revenue exceeds either:

	 	(i)	 	[ * ] of the combined Overall Revenue of SITA INC and its
Controlled Affiliates and their respective minority-owned affiliated
entities; or
	 
	 	(ii)	 	[ * ] of the Network Services Revenue of the SITA Group
Companies,
	 
	 	then Equant in its sole and absolute discretion will have the option to
terminate this Agreement.

	(g)	 	If the SITA INC Foundation transfers Control of SITA INC or one of its
Controlled Affiliates (each legal entity in respect of which Control was
transferred being a ‘Transferred Company’) and either the Transferred
Company or the purchaser of the Transferred Company has agreed with Equant
to be bound by the Exclusivity Obligation for four (4) years from the date
on which Control transfers (or for the remainder of the Effective Period,
if less than four (4) years remain of the Effective Period), then:

	 	(i)	 	as between the Transferred Company (or the purchaser of the
Transferred Company) and Equant, the terms of that agreement and not
the terms of this Agreement will apply;
	 
	 	(ii)	 	the Network Services Revenue, Non-Equant Network Services
Revenue and Overall Revenue of the Transferred Company will not be
included in the calculation of the thresholds set out above in
clause 7.3(c) and clause 7.3(f); and
	 
	 	(iii)	 	the remaining SITA Group Companies shall be deemed to be in
compliance with these Exclusivity Obligations for all purposes with
respect to the Transferred Company, provided that SITA SC has used
commercially reasonable endeavours to enforce the relevant
contractual provisions in respect of the Transferred Company.

	 	 	 
	

	Services Agreement	23	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(h)	 	For the purpose of the calculations required in clause 7.3, Network
Services Revenue, Overall Revenue, and Non-Equant Network Services Revenue
shall be measured and assessed on a [ * ].
	 
	7.4	 	Equant Non-Solicitation Obligation
	 
	(a)	 	On or after the Effective Date and subject to clause 7.3(e), Equant and
its Controlled Affiliates shall not during the Effective Period directly
or indirectly make Active Sales of Network Services to the Air Transport
Community.
	 
	(b)	 	If at any time during the Effective Period:

	 	(i)	 	SITA SC notifies Equant in writing of SITA SC’s decision to
cease selling Network Services to all of the Air Transport
Community, then the Equant Non-Solicitation Obligation will
terminate. Equant and its Controlled Affiliates shall not take any
action inconsistent with clause 7.4(a) unless and until SITA SC
provides notice pursuant to clause 30.2 of such a decision;
provided, however, that if SITA SC takes such a decision it shall
promptly provide notice of such decision to Equant; and
	 
	 	(ii)	 	SITA SC notifies Equant in writing of SITA SC’s decision to
cease selling Network Services in a particular geographic area or
Country, then the Equant Non-Solicitation Obligation will terminate
in respect of such geographic area or Country. Equant and its
Controlled Affiliates shall not take any action inconsistent with
clause 7.4(a) unless and until SITA SC provides notice pursuant to
clause 30.2 of such a decision; provided, however, that if SITA SC
takes such a decision it shall promptly provide notice of such
decision to Equant.

	(c)	 	If SITA SC has given written notice to Equant of any of the decisions set
out in clause 7.4(b) above, a subsequent SITA SC decision to re-enter the
relevant market will not re-instate the Equant Non-Solicitation
Obligation.
	 
	7.5	 	SITA Group Companies Non-Solicitation Obligation

On or after the Effective Date and subject to clause 7.3(e), the SITA Group
Companies shall not during the Effective Period directly or indirectly make
Active Sales of Network Services to customers other than the Air Transport
Community.

	7.6.	 	Limitation

The Equant Non-Solicitation Obligation and the SITA Group Companies
Non-Solicitation Obligation apply only to the provision and sale of Network
Services (including Network Services that are bundled with services other than
Network Services) and do not in any way restrict Equant, SITA SC, SITA INC or
the SITA Group Companies from providing services other than Network Services,
either directly or through any of their respective Affiliates, in any market
sector or Country.

	 	 	 
	

	Services Agreement	24	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	7.7	 	Linkage of the Related Provisions
	 
	(a)	 	If any of the Related Provisions, or the application thereof to any
Person or circumstances, is found to be invalid, illegal, void or
unenforceable for any reason whatsoever by a court of competent
jurisdiction or other competent governmental or regulatory agency or
authority (including without limitation by law, statute, ordinance, rule,
regulation, code, order, decree, judgment or injunction), then from the
effective date of such law, statute, ordinance, rule, regulation, code,
order, decree, judgment or injunction, then this Agreement shall be
automatically amended to delete clause 7 from this Agreement in its
entirety, with the exception of clause 7.8.
	 
	(b)	 	If any of the Related Provisions, or the application thereof to any
Person or circumstances, is found for any reason whatsoever by a court of
competent jurisdiction or other competent governmental or regulatory
agency or authority (including without limitation by law, statute,
ordinance, rule, regulation, code, order, decree, judgment or injunction)
to be valid and enforceable for a reduced duration or within a narrower
geographic scope than exists as at the date such finding is made, then the
Related Provisions shall be automatically amended to reflect such
reduction in duration or geographic scope, as the case may be, and the
revenues that SITA INC, its Controlled Affiliates and/or the SITA Group
Companies (as applicable) derived from activities which are not covered by
the Related Provisions (eg., activities outside their narrowed geographic
scope) shall not be used for the purpose of the calculations described in
clause 7.3(c) or clause 7.3(f).
	 
	(c)	 	If any of the Related Provisions, or the application thereof to any
Person or circumstances, for any reason whatsoever is found by a court of
competent jurisdiction or other competent governmental or regulatory
agency or authority, to be limited as to its validity, legality or
enforceability (including without limitation by law, statute, ordinance,
rule, regulation, code, order, decree, judgment or injunction) other than
as described in clause 7.7(a) or clause 7.7(b), then the Parties shall
agree in good faith appropriate amendments to this clause 7 that (a)
reflect the specific finding of such a court or other competent
governmental or regulatory agency or authority or such reduction or
limitation (including, if necessary, deleting such affected clause in its
entirety from this Agreement), and (b) reach a commercial equivalent
(including, if necessary, deleting this clause 7 in whole or in part from
this Agreement) so as to ensure that all the Related Provisions are of the
same or similar validity, legality, enforceability, duration and scope and
to ensure that the symmetry and balance existing as of the Effective Date
among the respective obligations of the SITA Group Companies, France
Telecom and Equant under the Related Provisions is restored and
maintained.
	 
	7.8.	 	Effect of Deletion or Amendment of Related Provisions
	 
	(a)	 	If Equant terminates the Related Provisions pursuant to clause 7.9(d),
then effective on the date of such termination:

	 	 	 
	

	Services Agreement	25	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	the right of the SITA SC board of directors to designate a
person to be appointed to serve as a member of the Supervisory Board
of Equant set out in clause 5 of the Strategic Relationship Umbrella
Agreement shall terminate;
	 
	 	(ii)	 	any right set out in this Agreement, the Strategic
Relationship Umbrella Agreement, or the Transition and Management
Agreement that entitles SITA SC and/or SITA INC to obtain any
information from Equant that exceeds the level or quantity of
information that a major customer would normally receive from a
vendor in a transaction that does not involve a strategic
relationship shall terminate; and
	 
	 	(iii)	 	any right set out in this Agreement, the Strategic
Relationship Umbrella Agreement, or the Transition and Management
Agreement that entitles Equant to obtain any information from SITA
SC and/or SITA INC that exceeds the level or quantity of information
that a vendor would normally receive from a major customer in a
transaction that does not involve a strategic relationship shall
terminate.

	(b)	 	If the Related Provisions are deleted or amended as described in clause
7.7, or lapse or are not renewed as described in clause 7.1(b), then the
Parties shall discuss and agree in good faith appropriate deletions or
amendments to provisions of this Agreement and the Strategic Relationship
Umbrella Agreement (including specifically the right of the SITA SC board
of directors to designate a person to be appointed to the Supervisory
Board of Equant pursuant to clause 5 of the Strategic Relationship
Umbrella Agreement and any right of SITA SC, SITA INC and Equant to obtain
any level or quality of information in excess of that which would normally
be available to such Party in a transaction that does not involve a
strategic relationship (the ‘Strategic Relationship Benefits’)) to ensure
that the Parties’ original commercial intentions are achieved as much as
possible, but also recognising the importance of the interdependency
between the Related Provisions and the Strategic Relationship Benefits, so
that the symmetry and balance existing as at the Effective Date among the
respective obligations of the SITA Group Companies, France Telecom and
Equant is restored and maintained.
	 
	7.9.	 	Breach of Exclusivity and Non-Solicitation Provisions
	 
	(a)	 	If either Equant or SITA SC believes that the other Party has breached
the Exclusivity Obligation, the Equant Non-Solicitation Obligation or the
SITA Group Companies Non-Solicitation Obligation, as applicable, then that
Party shall give written notice of such alleged breach to all Parties to
this Agreement and to France Telecom. The delivery of such notice will
also be deemed to be a referral of the alleged breach to the dispute
resolution procedure pursuant to clause 29.
	 
	(b)	 	Following the delivery of a notice of such alleged breach pursuant to
clause 7.9(a), the Parties concerned shall promptly initiate the informal
dispute resolution procedure. The Executive Committee shall promptly meet
for the purpose of determining whether such breach is a material breach of
the Exclusivity Obligation, the Equant Non-Solicitation Obligation or the
SITA Group Companies Non-Solicitation Obligation, as applicable,

	 	 	 
	

	Services Agreement	26	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	with such determination to be made within fourteen (14) days of the
effective date of the notice delivered pursuant to clause 7.9(a). If
the Executive Committee has not made such a determination within such
fourteen day period, then either Party may escalate the matter to the
chief executive officer of Equant and the Director General of SITA SC for
resolution. If no resolution is reached by the chief executive officer
of Equant and the Director General of SITA SC within seven (7) days, then
either Party may initiate the formal dispute resolution procedure, which
formal dispute resolution procedure shall take place on an expedited
basis. The arbitrator shall be empowered only to determine (i) if a
breach of the Exclusivity Obligation or the Equant Non-Solicitation
Obligation or the SITA Group Companies Non-Solicitation Obligation has
occurred; and (ii) if so, whether such breach is a material breach of
such obligations. After the arbitrator makes such determination, the
arbitration proceedings shall be recessed, pending possible resumption
pursuant to clause 7.9(e)(iv).
	 
	(c)	 	If it is determined pursuant to clause 7.9(b) that Equant has committed a
material breach of the Equant Non-Solicitation Obligation, then within
thirty (30) days following the date of such determination:

	 	(i)	 	SITA SC may terminate the Related Provisions upon delivery of
written notice to Equant, SITA INC and France Telecom;
	 
	 	(ii)	 	With immediate effect as at the date of delivery of such
notice, the Related Provisions shall lapse and the Effective Period
shall terminate; and
	 
	 	(iii)	 	Equant shall retain the contractual relationship with the
customer(s) that are the subject of the breach; and
	 
	 	(iv)	 	SITA SC shall be entitled to monetary damages as set out in
clause 7.9(e).

	(d)	 	If it is determined pursuant to clause 7.9(b) that the SITA Group
Companies have committed a material breach of the Exclusivity Obligation
or of the SITA Group Companies Non-Solicitation Obligation then within
thirty (30) days following the date of determination:

	 	(i)	 	Equant may terminate the Related Provisions upon delivery of
written notice to SITA SC, SITA INC and France Telecom;
	 
	 	(ii)	 	With immediate effect as at the date of delivery of such
notice, the Related Provisions shall lapse and the Effective Period
shall terminate; and
	 
	 	(iii)	 	If the breach is a breach of the SITA Group Companies
Non-Solicitation Obligation, then the SITA Group Companies shall
retain the contractual relationship with the customer(s) that are
the subject of the breach; and
	 
	 	(iv)	 	Equant shall be entitled to monetary damages as set out in
clause 7.9(e).

	(e)	 	If either Equant or the SITA Group Companies have committed a material
breach of one of the Related Provisions, then either SITA SC or Equant
(whichever is the non-

	 	 	 
	

	Services Agreement	27	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	breaching Party) shall be entitled to recover monetary damages from the
other as set out below:

	(i)	 	If the breach concerned is of the Equant Non-Solicitation
Obligation or the SITA Group Companies’ Non-Solicitation Obligation,
the measure of damages shall be the greater of:

	 	(A)	 	the margin that the breaching Party would
receive over the entire term of the relevant customer
contract that is the subject of the breach; or

	 	(B)	 	the margin that the non-breaching Party would
have received over the entire term of the relevant customer
contract that is the subject of the breach.

	(ii)	 	If the breach concerned is of the Exclusivity Obligation, the
measure of damages shall be the profit that Equant would have
actually received had the Network Services that are the subject of
such breach been obtained from Equant. Such damages shall be the
value of such profit calculated over the entire term of the Network
Services contract (or other relevant arrangement) that is the
subject of such breach;
	 
	(iii)	 	Equant and SITA SC shall attempt to agree on the value of
the monetary damages through the informal dispute resolution
procedure set out in clause 8.1 of the Strategic Relationship
Umbrella Agreement. If Equant and SITA SC are able to agree on the
value of the monetary damages, then the Party committing the
material breach in question shall pay such monetary damages on a
quarterly basis to the non-breaching Party, without any obligation
for the Party to which such monetary damages are due presenting any
notice or demand in respect thereof;
	 
	(iv)	 	If Equant and SITA SC do not agree as to the value of the
monetary damages within sixty (60) days after
a determination pursuant to clause 7.9(b) that a material
breach of the relevant Related Provision has occurred, then:

	 	(A)	 	The non-breaching Party may refer the issue of
monetary damages to formal dispute resolution pursuant to
clause 8.2 of the Strategic Relationship Umbrella Agreement.
If the issue of material breach was determined by an
arbitrator pursuant to clause 7.9(b), then the same
arbitrator shall determine the issue of monetary damages. In
the arbitration to determine the amount of the monetary
damages, the Parties may make use of, and the arbitrator may
take regard of, any evidence introduced by either Party in
the earlier arbitration;

	 	(B)	 	Each of the non-breaching Party and the
breaching Party shall submit to the arbitrator a proposed
package that encompasses all elements of margin that each
such Party believes the non-breaching Party should be
entitled to receive pursuant to clause 7.9(e);

	 	 	 
	

	Services Agreement	28	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(C)	 	The arbitration shall be conducted on an
expedited basis, as follows:

	 	I)	 	The arbitration will be conducted
on the basis of written submissions only; the
arbitrator will not be empowered to take testimony from
live witnesses;

	 	II)	 	Each Party shall deliver to the
other Party such information as is reasonably requested
to enable such Party to prepare its proposed package
(including disclosing the commercial arrangements of
the relevant customer contract(s)) as promptly as
possible following such request, but in no case later
than fifteen (15) days following the selection of the
arbitrator;

	 	III)	 	Each Party to the arbitration may
submit a written submission in support of its proposed
package, which shall be no longer than fifty (50) pages
in length, which shall be due thirty (30) days
following the due date for delivery of information
pursuant to clause 7.9(e)(iv)(C)II);

	 	IV)	 	Each Party to the arbitration may
submit a written submission rebutting the other Party’s
argument, which shall be no longer than fifteen (15)
pages in length, which shall be due fifteen (15) days
following the due date of the written submissions;

	 	V)	 	Each Party may make an oral
presentation to the arbitrator of no longer than two
(2) hours in length, with the date for oral argument
set at the mutual convenience of the arbitrator and the
Parties concerned, but no longer than thirty (30) days
following the due date of the written submission
without the Consent of the Parties to the arbitration;
and

	 	VI)	 	The arbitrator must issue his or
her award within fifteen (15) days following the date
of the oral presentations, without presenting any
written or oral opinion presenting any reasons
justifying such award.

	 	(D)	 	The arbitrator shall be empowered to select as
the arbitrator’s award only the entire proposed package
submitted by one of the Parties. For the avoidance of doubt,
the arbitrator may not vary the terms or amount of a Party’s
proposed package. The arbitrator may not make an award that
encompasses elements of both proposed packages or fashion its
own award; and

	 	(E)	 	The Party determined to have committed the
material breach in question shall pay such monetary damages
quarterly to the non-breaching Party pursuant to the terms of
the award, without any obligation for the Party to which such
monetary damages are due presenting any notice or demand in
respect thereof.

	 	 	 
	

	Services Agreement	29	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(f)	 	In the event that there is a material breach of the Related Provisions,
the sole remedies for such breach are set out in this clause 7.9. No
Party shall be entitled to collect damages (other than those specifically
set out in this clause 7.9) or obtain any other relief that might
otherwise be available at law or in equity (including the right to
terminate this Agreement, the Strategic Relationship Umbrella Agreement,
or the Transition and Management Agreement) in respect of such breach.
	 
	8.	 	SERVICE LEVELS
	 
	8.1.	 	General
	 
	(a)	 	Equant will provide the Network Services in accordance with the Service
Levels and Key Measurements set forth in Schedule F (‘Service Levels
Schedule’).
	 
	(b)	 	Schedule F (‘Service Levels Schedule’) sets out the Performance Targets
for each Service Level and Key Measurements.
	 
	8.2.	 	Failure to Perform
	 
	(a)	 	During calendar year 2001:

	 	(i)	 	the operational targets agreed by Equant and SITA SC relating
to calendar year 2001 pursuant to the JV Agreement will continue to
apply to the Network Services;
	 
	 	(ii)	 	any issues relating to Equant’s performance will be dealt
with by the Network Operational Performance Committee.

	(b)	 	During calendar year 2002 and thereafter:

	 	(i)	 	any Service Level Default will entitle SITA SC to receive
Service Credits or the other remedies as set forth in Schedule F
(‘Service Levels Schedule’);
	 
	 	(ii)	 	for any Service Level Default Equant will carry out the
remedial actions set forth in Schedule F (‘Service Levels
Schedule’); and
	 
	 	(iii)	 	for any failure to meet Key Measurements for [ * ], the Parties will agree an action plan to improve Equant’s
performance as set out in Schedule F (‘Service Levels Schedule’).

	8.3.	 	Service Credits

Schedule F (‘Service Levels Schedule’) sets forth the Service Credits payable
by Equant for a failure to meet the specified targets for each Service Level.

	 	 	 
	

	Services Agreement	30	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

	9.	 	TAXES
	 
	9.1.	 	General

All amounts payable under this Agreement are exclusive of any taxes that may be
imposed upon such amounts payable in accordance with applicable Law, including
any sales tax, value-added tax, or other similar taxes imposed by any country,
state, department, city, locality or other taxing authority. All such taxes,
with the exception of any taxes imposed on income (including any withholding
tax on income), shall be paid by the Party responsible for paying such amounts
payable as additional charges. The Parties will provide any applicable tax
invoices, certificates of deduction of tax or other documents as required in
connection with such taxes.

	9.2.	 	Billing Entities, Billed Entities and Remitting Entities

The Parties will agree which Equant legal entities shall issue particular
invoices, which SITA Group Companies will be the legal entities that are the
customer of record to which particular invoices are rendered, and which SITA
Group Companies will be the legal entities that remit amounts due under
particular invoices. As at the Effective Date, the billing entities, billed
entities, and remitting entities are set out in Schedule H (‘Billing Entities, Billed
Entities and Remitting Entities’). Following the Effective Date, changes to
the billing entities, billed entities and remitting entities will be agreed by
the Parties. Such changes need not be recorded in formal amendments to
Schedule H, so long as such changes are agreed in writing by the Parties
concerned (eg., a service request change order submitted by SITA SC and
accepted by Equant).

	10.	 	PRICING OF PRODUCTS AND SERVICES
	 
	10.1.	 	Pricing Categories and Prices
	 
	(a)	 	Pricing categories

	 	(i)	 	The Services are set out under Schedule I (‘Schedule of
Services’) which includes a further classification of the Services
as consisting of the Priced Services, Exception Priced Services,
Standard Cost Services and Pass Through Services.
	 
	 	(ii)	 	Under Schedule I (‘Schedule of Services’), each Service is
further identified and classified as being (i) either a Cost Base
Service or a Non-Cost Base Service; and (ii) either a SITA Specific
Product/Service or a Generic Product/Service. The Parties shall
periodically agree amendments to Schedule I (‘Schedule of
Services’) and Price Books throughout the Term such that Schedule I
(‘Schedule of Services’) and the then current Price Books reflects
the Services and products provided by Equant to SITA SC, SITA INC
and the SITA Group Companies at all times.
	 
	 	(iii)	 	Unless otherwise agreed in writing by the Parties in any
amendments to Schedule I (‘Schedule of Services’) and/or the Price
Books with respect to new products and/or services that are similar
to Cost Base Services (as agreed at the

	 	 	 
	

	Services Agreement	31	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	Effective Date) shall be Cost Base Services. For the avoidance of
doubt, all existing and future data services and/or products,
specifically including on-net integrated data and voice services
like VoIP and VoFR shall be Cost Base Services.
	 
	 	(iv)	 	In addition to Schedule I (‘Schedule of Services’), the
Services are also set out under the Price Books, however, the
Parties hereby agree that the Price Books shall not be interpreted
as constituting an exclusive list of all Services provided by Equant
to SITA SC, SITA INC and the SITA Group Companies prior to the
Effective Date pursuant to the JV Agreement.

	(b)	 	Prices

	 	(i)	 	The Priced Services shall be provided by Equant to SITA SC,
SITA INC and the SITA Group Companies at Net Price Book Prices, such
prices to be determined in accordance with the provisions of clause
10. The “Priced Service Charges” are calculated as being the amount
payable by SITA SC and/or SITA INC to Equant with respect to the Net
Price Book Activity.
	 
	 	(ii)	 	Exception Priced Services shall be provided by Equant to SITA
SC, SITA INC and the SITA Group Companies at a price per Service
agreed between the Parties in their sole and absolute discretion,
on an ad hoc basis and the Parties shall update the Price Books to
reflect such Exception Priced Services on an ad hoc basis.
Exception Priced Services shall be provided to SITA SC, SITA INC and
the SITA Group Companies at a price that is less than the price of
an equivalent Priced Service. The “Exception Priced Service
Charges” are calculated as being the amount payable by SITA SC
and/or SITA INC to Equant with respect to the Net Price Book
Activity.
	 
	 	(iii)	 	Standard Cost Services shall be provided by Equant to SITA
SC, SITA INC and the SITA Group Companies at a standard unit cost
defined for each service. Standard unit cost values will at all
times be the reflection of the costs incurred by Equant, including
direct manpower costs and other direct costs associated with each
service, plus associated overheads equal to [*] of
direct costs. The prices payable with respect to the Standard Cost
Services shall be set out in the Price Books. The “Standard Cost
Service Charges” are calculated as being the amount payable by SITA
SC and/or SITA INC to Equant with respect to the Net Price Book
Activity, where appropriate.
	 
	 	(iv)	 	Subject to clause 18.6 and Schedule R (‘Tail Circuit
Management’), Pass Through Services shall be provided by Equant to
SITA SC, SITA INC and the SITA Group Companies [*].

	10.2.	 	Price Books and Price Book Updates
	 
	(a)	 	Provision of Price Books

	 	 	 
	

	Services Agreement	32	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	As at the Effective Date, the cost sharing mechanism
implemented and performed by Equant and SITA under the terms of the
JV Agreement (the “Cost Share”) will be replaced by the provisions
of clauses 10.2 and 10.3.
	 
	 	(ii)	 	The Price Books shall consist of:

	 	(A)	 	the SITA Specific Price Book which shall
contain the gross prices payable by SITA SC and/or SITA INC
on behalf of SITA SC, SITA INC and the SITA Group Companies
with respect to SITA Specific Services/Products; and

	 	(B)	 	the Generic Price Book which shall contain the
gross prices payable by SITA SC and/or SITA INC on behalf of
SITA SC, SITA INC and the SITA Group Companies with respect
to Generic Services/Products; and

	 	(iii)	 	The Volume Discount Tables shall set out all tables
applicable to the SITA Specific Discounts.
	 
	 	(iv)	 	The price at which Equant offers any Service that is classified as a
Generic Service/Product to SITA SC, the SITA Group Companies and SITA INC shall be
the gross prices set out in the Generic Price Book, less any applicable discounts, which gross prices shall be the same gross
prices offered to Equant’s other distributors or other third parties. 

	(b)	 	Year 2000 Cost Base

The Parties hereby agree that the actual amount of the shared network costs
attributable to and paid for by SITA SC on behalf of SITA SC, SITA INC and the
SITA Group Companies as a result of the Cost Share under the JV Agreement
during the calendar year 2000 is equal to [*] (the “Year 2000
Cost Share”). The value of the Year 2000 Cost Share has been adjusted through
the mutual agreement of the Parties in order to define the “Year 2000 Cost
Base” and the Parties hereby agree that Schedule P sets out the services and/or
products in respect of which the adjustments were agreed (the “Adjustments to
the Year 2000 Cost Share”) and together with those services that have been
agreed between the Parties as constituting the Services constituting the Year
2000 Cost Base and the Parties hereby agree that the value of the Year 2000
Cost Base is equal to [*].

	(c)	 	Contract Year Zero Cost Base

The Contract Year Zero Cost Base shall be calculated by the Parties in
accordance with the provisions of Schedule P (‘Volume and Cost Base
Considerations’) as soon as reasonably possible following the release of the JV
audited financial report for the first six (6) calendar months of the calendar
year 2001.

	(d)	 	Year 2000 Price Books

	 	(i)	 	The services and/or products previously provided by Equant to
SITA SC, SITA INC and the SITA Group Companies under the terms of
the JV Agreement during the calendar year 2000 have been identified
and classified as being either

	 	 	 
	

	Services Agreement	33	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	a SITA Specific Product/Service or a Generic Product/Service and
are set out under Schedule B (the “Year 2000 Price Books”).
	 
	 	(ii)	 	In the event that any service or product provided by Equant
to SITA SC, SITA INC and the SITA Group Companies under the terms of
the JV Agreement is either not listed or in respect of which a price
is not set out under the Year 2000 Price Books, Equant shall provide
such service or product to SITA SC, SITA INC and the SITA Group
Companies [*] The Cost Base Services shall not include:

	 	(A)	 	Services provided in respect of the customer
contracts transferred from France Telecom and Global One to
the SITA Group Companies; and

	 	(B)	 	additional voice services provided through the
Global One voice platform that are not within the SITA/Equant
JV platform as at the Effective Date.

	 	 	 	However, if during the Term Equant elects to stop providing voice
services on the SITA/Equant JV platform, then all voice revenues
shall be included in the Cost Base (which shall be correspondingly
adjusted to reflect such additional voice services and volumes)
and all revenues associated with all voice services will from that
point forward be applied toward the Minimum Revenue Commitment.
During the intervening period (the period during which Equant
maintains two voice platforms), voice services that Equant
provides on the Global One platform shall nonetheless be included
in the Cost Base if such services could have been provided within
the current SITA/Equant JV platform.
	 
	 	(iii)	 	It is hereby agreed by the Parties that the prices set out
in the Year 2000 Price Books for calendar year 2000 Cost Base
Services, applied to the activity levels utilised by SITA SC, SITA
INC and the SITA Group Companies with respect to the Cost Base
Services provided by Equant to SITA SC, SITA INC and the SITA Group
Companies during the calendar year 2000, reflects the value of the
Year 2000 Cost Base.
	 
	 	(iv)	 	In the event that the activity relating to a Cost Base
Service or product provided under the terms of the JV Agreement has
not been reflected in the activity levels utilised by SITA SC, SITA
INC and the SITA Group Companies with respect to the Cost Base
Services provided by Equant to SITA SC, SITA INC and the SITA Group
Companies during the calendar year 2000, Equant shall provide such
service or product to SITA SC, SITA INC and the SITA Group Companies [*]

	 	 	 
	

	Services Agreement	34	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	[*]
	 
	 	(v)	 	The Parties hereby agree that some service features that are
not itemised in the 2000 Price Books might be introduced in the
Price Books within the first twelve calendar months immediately
following the Effective Date by mutual agreement, such introduction
to be set-off in terms of the total charges to SITA by a
commensurate reduction of the existing prices such that the
application of the expanded 2000 Price Books to the 2000 SITA
activity remains equivalent to the 2000 Cost Base.

	(e)	 	Contract Year One Price Books

	 	(i)	 	The Contract Year One Price Books shall be provided by Equant
to SITA SC and SITA INC as soon as reasonably practical following
the Effective Date and shall be agreed between the Parties prior to
taking effect.
	 
	 	(ii)	 	The Contract Year One Price Books shall include gross prices
together with Net Price Book Prices and details of any and all SITA
Specific Discounts granted by Equant to SITA SC and SITA INC.
	 
	 	(iii)	 	The Contract Year One Price Books shall be identical to the
Year 2000 Price Books in format and pricing structure. “Pricing
Structure” means the relative prices between Priced Services and the
classification of Services in discrete price levels on the basis of
the type of service and/or product, geographic region, originating
country, destination country, capacity and traffic levels, such list
being a non-exclusive list of possible factors taken into
consideration.
	 
	 	(iv)	 	Equant and SITA SC and/or SITA INC, as applicable, shall work
together in order to include a [*] of [ * ]
against the 2000 Unit Cost applicable to Contract Year One within
the Net Price Book Prices.

	(f)	 	Price Book Updates

	 	(i)	 	Throughout the Term, SITA SC shall represent the interests of
SITA INC in connection with the provisions of this clause 10.2 (f).
As promptly as practical after the date on which SITA INC is
no longer Controlled by the SITA INC Foundation, the Parties will
negotiate in good faith appropriate amendments to this clause
concerning the representation of SITA INC by SITA SC.
	 
	 	(ii)	 	Equant shall provide the Preliminary Price Books, the Draft
Price Books and the Price Books to SITA SC, SITA INC and the SITA
Group Companies on an annual basis in accordance with the provisions
of Schedule J (‘Price Book Update Timescale’) unless otherwise agreed
by the Parties.
	 
	 	(iii)	 	Equant shall have sole and absolute discretion to determine
the gross prices to be set out in the Price Books applicable to
Contract Year 2 and thereafter. [*]

	 	 	 
	

	Services Agreement	35	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	
[*]. Equant and SITA SC and/or SITA
INC, as applicable, shall mutually agree the Price Books through
work teams designated by the Parties and this shall include
Pricing Structure, relative price and SITA Discount Tables.
	 
	 	(iv)	 	Equant shall give full details of the gross prices and SITA
Specific discounts in the various pricing documents (for example
Price Books and SITA Specific Discounts including Volume Discount
Tables). The Pricing Structure for the Price Books for Contract
Year 2 onward shall be agreed between the Parties.
	 
	 	(v)	 	Equant shall make certain preliminary versions of the Draft
Volume Discount Tables and Draft Price Books available to SITA SC
and/or SITA INC. The Volume Discount Tables provided by Equant
shall include the financial impact of volumes both less than and
greater than SITA SC and/or SITA INC’s then-current volumes.
	 
	 	(vi)	 	Net prices for the Services set out in the Price Books shall
be adjusted by Equant, subject to the mutual agreement of the
Parties, to include the requirements of sub-clause (g) below. Such
adjustments shall be achieved through either adjustments to the
gross prices set out in the Price Books or through the use of SITA
Specific discounts.
	 
	 	(vii)	 	In the event that the Net Price Book Prices have not been
agreed between the Parties prior to the Price Book Delivery Date (as
defined in Schedule J (‘Price Book Update Timescale’) then the chief
financial officers of Equant N.V., SITA SC and SITA INC shall review
the Price Books and agree Net Price Book Prices, in default of which
the Price Books shall be reviewed by the Executive Committee. The
Executive Committee shall be granted full power and authority to
agree Net Price Book Prices and make the required adjustments to Net
Price Book Prices and/or SITA Specific Discounts, subject to the
provisions of this clause 10.2. In the event that the Executive
Committee fail to agree the Net Price Book Prices, the Parties shall
initiate the Dispute Resolution Process.
	 
	 	(viii)	 	In the event that the Price Books are not agreed prior to the
first calendar day of the applicable Contract Year, the Price Books
for the immediately preceding Contract Year shall remain in effect
until resolution by either the chief financial officers of Equant,
SITA SC and SITA INC; the Executive Committee; or under the Dispute
Resolution Process. Following resolution, the agreed Price Books
shall be put into effect as soon as reasonably possible and any
payments or repayments with respect to adjustments to Net Price Book
Prices arising as a result of application of the agreed Price Books
to the first calendar day of the relevant Contract Year shall be
made between the Parties.
	 
	 	(ix)	 	On an annual basis, in accordance with the provisions of
Schedule J (‘Price Book Update Timescale’), SITA SC and/or SITA INC
(as applicable) shall provide Equant with a forecast of its total
expected revenues, in US Dollars, for the applicable Contract Year
with respect to Network Services (the “Global

	 	 	 
	

	Services Agreement	36	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	
Revenue Forecast”). Equant shall grant to SITA SC and/or SITA INC
(as appropriate) the applicable Volume dependent discount as set
out in the Volume Discount Table for the forecast revenue (the
“Volume Discount”).
	 
	 	(x)	 	In the event that the Net Price Book Prices have not been
agreed by the Annual Forecast Date; then until such time as such Net
Price Book Prices have been agreed:

	 	(A)	 	the [*] Revenue Discount Adjustment shall not apply; and

	 	(B)	 	SITA SC and/or SITA INC, as applicable, shall
not be required to make any payments with respect to any
Recognisable Costs arising in connection with any Quarterly
Network Activity Forecast which is required to be submitted
by SITA SC and/or SITA INC, as applicable, during the period
under which the Net Price Book Prices are under consideration
by either the chief financial officers of Equant, SITA SC and
SITA INC; the Executive Committee; or under the Dispute
Resolution Process.

	(g)	 	Pricing Procedures
	 
	 	 	Net Price Book Prices shall be agreed between the Parties in accordance
with and pursuant to the provisions of this clause:

	 	(i)	 	Contract Year 2
	 
	 	 	 	
The Net Price Book Prices for Contract Year 2 shall include a
[ * ] in Unit Cost from the Contract
Year One when applied to the activity for Cost Base Services for
Contract Year One.
	 
	 	(ii)	 	Contract Year Three
	 
	 	 	 	
Equant shall adjust Net Price Book Prices to comply with all of
the following:

	 	(A)	 	the net price should be [*] of the prices in the
Benchmarking Database as determined and certified by the
Independent Expert pursuant to and in accordance with the
provisions of clause 11; Schedule M; and Schedule M, Part I,
clause 3.2(a)(i));

	 	(B)	 	the net price should be [ * ] of the
prices in the Benchmarking Database plus a [ * ] price
increment as determined and certified by the Independent
Expert pursuant to and in accordance with the provisions of
clause 11; Schedule M; and Schedule M, Part I, clause
3.2(a)(ii);

	 	(C)	 	the Net Price Book Prices should be [*] the prices required to pass MFN Tests as determined
and certified by the MFN Evaluation

	 	 	 
	

	Services Agreement	37	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	pursuant to and in accordance with the provisions of clauses
12 and 13; and Schedule M and Schedule N; and

	 	(D)	 	the Net Price Book Prices should [*] to the Unit Cost as follows:

	 	I)	 	in the event that during Contract
Years 1 and 2 the annual [*] in Volume has not
been less than [ * ], minimum in Unit Costs
will apply with regard to the Volume for the Contract
Year, if the most recent Quarterly Network Activity
Forecast for the Contract Year forecasts an [*] in
Volume of:

	 	a.	 	[ * ], then the minimum [*] in Unit Cost
shall be [ * ];

	 	b.	 	[ * ], then the minimum [*] in Unit Cost shall be
[ * ];

	 	c.	 	[ * ], then the [ * ] in Unit Cost shall be [ * ]; and

	 	II)	 	for the avoidance of doubt, where
the [ * ] in Volume is between [ * ] and [ * ] the
Volume [ * ] and Unit Cost [ * ] shall be
linearly proportional.

	 	(iii)	 	Contract Year Four onwards
	 
	 	 	 	
Equant shall adjust Net Price Book Prices to comply with all of
the following:

	 	(A)	 	the net price should be [ * ] of the prices in the
Benchmarking Database as determined and certified by the
Independent Expert pursuant to and in accordance with the
provisions of clause 11; Schedule M; and Schedule M, Part I,
clause 3.2(a)(i));

	 	(B)	 	the net price should be [ * ] of the
prices in the Benchmarking Database [ * ] as determined and certified by the Independent
Expert pursuant to and in accordance with the provisions of
clause 11; Schedule M; and Schedule M, Part I, clause
3.2(a)(ii);

	 	(C)	 	for each Benchmarking Region the Net Price Book
Prices should be [ * ] the prices required to
pass MFN Tests as determined and certified by the MFN
Evaluation pursuant to and in accordance with the provisions
of clauses 12 and 13; and Schedule M and Schedule N; and

	 	(D)	 	the Unit Cost in Contract Year N shall only
increase over Contract Year N-1 if the Contract Year N-1
Market Price [ * ].

	 	 	 
	

	Services Agreement	38	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	10.3.	 	Service Charges
	 
	(a)	 	The “Service Charges” shall consist of the Priced Service Charges,
Exception Priced Service Charges, Standard Cost Service Charges and the
amount payable by SITA SC and SITA INC with respect to Pass Through
Services. Applicable charges relating to Priced Services shall begin to
accrue in accordance with the Ready for Service definition set out in the
Price Books and Equant shall invoice SITA SC and/or SITA INC, as
applicable, with respect to the Service Charges as adjusted pursuant to
this clause 10.3 in accordance with the provisions of clause 18. Equant
shall adjust the Service Charges payable by SITA SC and/or SITA INC on
behalf of SITA SC, SITA INC and the SITA Group Companies in accordance
with and pursuant to the provisions of this clause:
	 
	(b)	 	MRC Quarterly Payments

	 	(i)	 	Contract Year One MRC Quarterly Payments
	 
	 	 	 	
Equant shall adjust the Cost Base Service Charges to include the
MRC Quarterly Payments payable by SITA SC and/or SITA INC (if any)
and shall invoice SITA SC and/or SITA INC (as applicable) in
accordance with clause 18 to Equant in accordance with the
following:

	 	(A)	 	“Cumulative Contract Year One Interim MRC”
means the value of the cumulative percentage of the Contract
Year One Gross Annual MRC to be invoiced by Equant to SITA SC
during Contract Year One on the respective MRC Quarterly Due
Date and set out in the table below:

	 	 	 	 	 	 	 
	 	 	 	 	Cumulative % of the
	 	 	 	 	Contract Year One
	Contract Year One	 	 	 	Gross Annual MRC
	Quarters	 	MRC Quarterly Due Date	 	Payment
	
	 	
	 	

	Q1	 	
30th September 2001
	 	 	[ * ]	 
	Q2	 	
31st December 2001
	 	 	[ * ]	 
	Q3	 	
31st March 2002
	 	 	[ * ]	 

	 	(B)	 	“Adjusted Annual MRC Contract Year One” equals
the Contract Year One Gross Annual MRC less the aggregated
sum of the MRC Reductions for Contract Year One;

	 	 	 
	

	Services Agreement	39	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(C)	 	The “Contract Year One Quarterly MRC Payment”
equals the sum of:

	 	I)	 	the respective Cumulative Contract
Year One Interim MRC; less

	 	II)	 	the gross aggregate value of the
then current Cost Base Service Charges for the period
commencing on the first calendar day of Contract Year
One until the respective MRC Quarterly Due Date; less

	 	III)	 	the then current value of the
aggregate total of the Quarterly MRC Payments paid by
SITA SC to Equant for the period commencing from the
first calendar day of Contract Year One until the
respective MRC Quarterly Due Date,

	 	where the value of the Contract Year One Quarterly MRC
Payment shall always be greater than or equal to zero. In
the event that the Contract Year One Quarterly MRC Payment
is a negative number, then the value attributed to the
Contract Year One Quarterly MRC Payment shall be zero.

	 	(ii)	 	Contract Year Two MRC Quarterly Payments
	 
	 	 	 	
Equant shall adjust the Cost Base Service Charges to include the
MRC Quarterly Payments payable by SITA SC and/or SITA INC (if any)
to Equant in accordance with the following:

	 	(A)	 	“Cumulative Contract Year Two Interim MRC”
means the value of the cumulative percentage of the Contract
Year Two Gross Annual MRC to be invoiced by Equant to SITA SC
during Contract Year Two on the respective MRC Quarterly Due
Date and set out in the table below:

	 	 	 	 	 	 	 
	 	 	 	 	Cumulative % of the
	 	 	 	 	Contract Year Two
	Calendar quarter:	 	 	 	Gross Annual MRC
	Contract Year Two	 	MRC Quarterly Due Date	 	Payment
	
	 	
	 	
	 
	Q1	 	
30th September 2002
	 	 	[ * ]	 
	Q2	 	
31st December 2002
	 	 	[ * ]	 
	Q3	 	
31st March 2003
	 	 	[ * ]	 

	 	(B)	 	“Adjusted Annual MRC Contract Year Two” equals
the Contract Year Two Gross Annual MRC less the aggregated
sum of the MRC Reductions for Contract Year Two;

	 	(C)	 	The “Contract Year Two Quarterly MRC Payment”
equals the sum of:

	 	 	 
	

	Services Agreement	40	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	I)	 	the respective Cumulative Contract
Year Two Interim MRC; less

	 	II)	 	the gross aggregate value of the
then current Cost Base Service Charges for the period
commencing on the first calendar day of Contract Year
Two until the respective MRC Quarterly Due Date; less

	 	III)	 	the then current value of the
aggregate total of the Quarterly MRC Payments paid by
SITA SC to Equant for the period commencing from the
first calendar day of Contract Year Two until the
respective MRC Quarterly Due Date,

	 	where the value of the Contract Year Two Quarterly MRC
Payment shall always be greater than or equal to zero. In
the event that the Contract Year Two Quarterly MRC Payment
is a negative number, then the value attributed to the
Contract Year Two Quarterly MRC Payment shall be zero.

	(c)	 	Adjustments at the end of the Contract Year

	 	(i)	 	MFN
	 
	 	 	 	
If the MFN Evaluator determines that any of the MFN Tests have
failed in a Benchmarking Region then Equant shall deduct a MFN
Refund from the Service Charges. The MFN Refund is calculated in
Clause 2.7 of Schedule N (‘Instructions to the MFN Evaluator’) and
reported in the MFN Certification Report.
	 
	 	(ii)	 	[*] Volume Discount Adjustment
	 
	 	 	 	
With effect from the beginning of Contract Year Four the following
will be applicable:

	 	(A)	 	if SITA SC and/or SITA INC’s actual volumes
exceed the [*] Revenue Forecasts, it shall receive the
benefit of any increased discounts specified in the Volume
Discount Tables;

	 	(B)	 	if SITA SC and/or SITA INC’s actual volumes are
less than the [*] Revenue Forecasts, then it shall receive
the discount specified in the Volume Discount Tables for the
actual volumes achieved less:

	 	I)	 	0.33% for each percentage point (or
fraction thereof) that SITA SC and/or SITA INC’s actual
volumes are more than five per cent (5%) less than the [*] Revenue Forecast; and

	 	II)	 	0.5% for each percentage point (or
fraction thereof) that SITA SC and/or SITA INC’s actual
volumes are more than fifteen per cent (15%) less than
the [*] Revenue Forecast,

	 	
(the “[*] Revenue Discount Adjustment”).

	 	 	 
	

	Services Agreement	41	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	[*]

	 	(C)	 	The maximum value of the [*] Revenue Discount Adjustment
shall be limited to a value equal to [*] of the
discount specified in the Volume Discount Tables relevant to
the actual volume of SITA SC, SITA INC and the SITA Group
Companies for the relevant Contract Year as reduced by the [*] Revenue Discount Adjustment for the appropriate Contract Year.

	(iii)	[*]	 	 
	 
	(iv)	[*]	 	 

	 	 	 
	

	Services Agreement	42	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	10.4.	 	Invoicing
	 
	(a)	 	Equant shall deliver a report setting out full details and verifying the
True Up Payment to the SITA SC Representative and/or the SITA INC
Representative within one calendar month of the last calendar day of each
Contract Year in accordance with the terms and conditions of clause 30.2.
Within fifteen calendar days of receipt of such report, Equant may invoice
or shall issue a credit note to SITA SC and/or SITA INC, as applicable, for the amount of the True Up
Payment.
	 
	(b)	 	Equant shall deliver a report setting out full details and verifying the
MFN Refund to the SITA SC Representative and/or the SITA INC
Representative within one calendar month of the last calendar day of each
Contract Year in accordance with the terms and conditions of clause 30.2.
Within fifteen calendar days of receipt of such report, Equant shall issue
a credit note to SITA SC and/or SITA INC, as applicable, for the amount of the MFN Refund.
	 
	10.5.	 	Reliance on historical data and non-performance by Equant
	 
	(a)	 	The Parties hereby acknowledge and agree that the [*] Revenue Forecast
provided by SITA SC and/or SITA INC, as applicable is based in part on the
accuracy and completeness of the historical activity, mediation and
billing data provided by Equant to SITA SC and SITA INC, as applicable,
(the “Historical Activity Data”). SITA SC and/or SITA INC, as applicable,
shall retain the right to initiate Dispute Resolution Proceedings with
respect to the accuracy and completeness of all or any part of the
Historical Activity Data. In the event that all or any part of the
Historical Activity Data is found to be either materially incomplete or
inaccurate pursuant to the Dispute Resolution Process then:

	 	 	 
	

	Services Agreement	45	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	the [*] Revenue Discount Adjustment shall not apply to the extent that
such [*] Revenue Discount Adjustment was incurred as a result of such
material inaccuracy or incompleteness; and
	 
	 	(ii)	 	any other adjustments to the Service Charges, Volumes or
Volume Discounts (including with respect to prior years) as agreed
between the Parties in order to correct for such materially
inaccurate or incomplete data shall be implemented.

	(b)	 	Volume adjustment related to non performance by Equant
	 
	 	 	In the event of significant non-performance of the terms and conditions
of this Agreement by Equant, as set out at clause 10.5 (c):

	 	(i)	 	corresponding activity volumes will be added to the actual
activity volumes achieved for the determination of the Volume
Discount and the activity volumes used for calculating Recognisable Costs pursuant to clause 16.1; and
	 
	 	(ii)	 	for the purpose of determining
whether the [*] thresholds in Contract Year One, Contract Year Two and Contract Year
Three have been achieved as a condition to the Allowed Unit Cost
Reduction in Contract Year Three, corresponding activity volumes
will be added to the actual Volumes achieved.

	(c)	 	For the purposes of clause 10.5 (b), an event of significant
non-performance shall mean the following circumstances:

	 	(i)	 	where SITA SC and/or SITA INC implement any right under this
Agreement to purchase any Network Services that are Cost Base
Services from a service provider other than Equant;
	 
	 	(ii)	 	where Equant fails to meet the requirements of the agreed
migration schedule by more than thirty (30) days for the integration
and migration of SITA SC’s, SITA INC’s or the SITA Group Companies’
outsourcing arrangements and such failure is primarily attributable
to the fault of Equant, Equant’s contractors, sub-contractors,
agents, employees or other representatives (but not a PTT) and is
not otherwise excused under this Agreement;
	 
	 	(iii)	 	where Equant fails (and such failure is not excused under the
Agreement) to meet the committed delivery date for the provision of
customer orders by more than sixty (60) days and such activities
shall be calculated from the first calendar day of failure to meet
the committed delivery date (for example, over 65 days, had
implementation been delayed by 65 days);
	 
	 	(iv)	 	if, as a direct result of performance failures (not PTT
failures) occurring after January 1, 2002, in the Network or with
respect to the provision of Network Services by Equant (or its
relevant Affiliate, agent, sub-contractor or employee), a customer
of SITA SC, SITA INC or a SITA Group Company terminates, either in
full or in part, a contract with either SITA SC, SITA INC or a SITA
Group Company (irrespective of whether the contract is already
operational or became

	 	 	 
	

	Services Agreement	46	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	 
	 	operational either prior to, or after, the Effective Date of
this Agreement). SITA SC, SITA INC or the SITA Group
Company shall demonstrate to Equant’s reasonable satisfaction that
such termination was as a result of such performance failure
through identification of the respective SITA customer concerned
and provision of a copy of all related correspondence, if any,
delivered by the SITA customer to SITA in respect of their
termination of either all or part of such customer contract. SITA
SC, SITA INC or the SITA Group Company shall work together in order
to verify the events relating to the SITA customer’s termination,
either in full or in part, of the SITA customer contract;
	 
	 	(v)	 	if, as a direct result of performance failures (not PTT
failures) occurring after January 1, 2002, in the Network or with
respect to the provision of Network Services by Equant (or its
relevant Affiliate, agent, sub-contractor or employee), a customer
of SITA SC, SITA INC or a SITA Group Company fails to renew, either
in full or in part, a contract with SITA SC, SITA INC or a SITA
Group Company, (irrespective of whether the contract is already
operational or became operational either prior to, or after, the
Effective Date of the Network Services Agreement). SITA SC, SITA
INC or the SITA Group Company shall demonstrate to Equant’s
reasonable satisfaction that such termination was as a result of
such performance failure through identification of the respective
SITA customer concerned and provision of a copy of all related
correspondence, if any, delivered by the SITA customer to SITA in
respect of their termination of either all or part of such customer
contract. SITA SC, SITA INC or the SITA Group Company shall work
together in order to verify the events relating to the SITA
customer’s non-renewal, either in full or in part, of the SITA
customer contract; and
	 
	 	(vi)	 	such other activities as may be agreed in writing between the
Parties.
	 

	11.	 	BENCHMARKING SURVEY
	 
	11.1.	 	General

During the Term, a comparison of:

	(a)	 	the Net Price Book Prices of the Priced Services and Tail Circuits;
against
	 
	(b)	 	the net prices set out in customer contracts entered into by Comparable
Providers providing Comparable Services where the net prices have been:

	 	(i)	 	normalised from end customer prices to distributor prices
(where required) and as otherwise required under Schedule M
(‘Instructions to the Independent Expert’); and
	 
	 	(ii)	 	extrapolated in accordance with clause 2.7 of Schedule M
(‘Instructions to the Independent Expert’) to be applicable to the
first day of the effective period of the Price Books,
(the “Benchmarking Survey”), shall be performed in accordance with the
provisions of this clause 11.

	 	 	 
	

	Services Agreement	47	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	11.2.	 	Nomination and Selection of the Independent Expert

The Parties shall, in accordance with the provisions of Schedule K (‘Nomination
and Selection of the Independent Expert’), nominate
and select an independent third party that fulfils the Nomination Criteria,
(the “Independent Expert”) to perform the Benchmarking Survey on behalf of the
Parties.

	11.3.	 	Appointment of the Independent Expert
	 
	(a)	 	Following the selection of an Independent Expert, the Parties shall enter
into a written agreement with the Independent Expert with a three (3)
year term (the “Benchmarking Agreement”).
	 
	(b)	 	At least twelve (12) calendar months prior to the end of the term of a
Benchmarking Agreement, the Parties shall repeat the procedures set out
under clauses 11.2 and 11.3.
	 
	(c)	 	Subject to the provisions of clause 11.6, an Independent Expert shall be
appointed under the terms and provisions of a Benchmarking Agreement at
all times during the Term.
	 
	(d)	 	Throughout the Term, SITA SC shall represent the interests of SITA INC in
connection with the Benchmarking Survey and under the Benchmarking
Agreement. As promptly as practical after the date on which SITA INC is
no longer Controlled by the SITA INC Foundation, the Parties will
negotiate in good faith appropriate amendments to this clause concerning
the representation of SITA INC by SITA SC.
	 
	11.4.	 	Frequency of Benchmarking
	 
	(a)	 	With effect from the Effective Date, the Parties shall instruct the
Independent Expert to perform a Benchmarking Survey on an annual basis in
accordance with the timeline set out in Schedule J (‘Price Book Update
Timescale’).
	 
	(b)	 	In addition to the provisions of this clause 11.4, the Parties may agree
(which agreement may be withheld in a Party’s sole and absolute
discretion) to instruct the Independent Expert to perform a Benchmarking
Survey with respect to a specified period at any time during the Term.
	 
	11.5.	 	Role of the Independent Expert
	 
	(a)	 	The Parties shall, under the terms of the Benchmarking Agreement,
authorise and instruct the Independent Expert to:

	 	(i)	 	design, implement, analyse and perform the Benchmarking
Survey;
	 
	 	(ii)	 	prepare two reports (the “Benchmarking Report” and the
“Benchmarking Certification Report”) giving full details of the
analysis and results of the Benchmarking Survey on behalf of the
Parties;

	 	 	 
	

	Services Agreement	48	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	appoint an appropriate individual to act as a single point
of contact for activities associated with the Benchmarking Survey;
	 
	 	(iv)	 	communicate progress to SITA SC and Equant and liaise with
their nominated project leaders or single points of contact; and
	 
	 	(v)	 	present the Benchmarking Report and the Benchmarking
Certification Report,

	 	 	 pursuant to and in accordance with the terms and conditions of such
Benchmarking Agreement, which shall incorporate the provisions of
Schedule J.
	 
	(b)	 	[*]
	 
	(c)	 	[*]
	 
	(d)	 	[*]
	 
	(e)	 	[*]
	 
	(f)	 	[*]
	 
	(g)	 	[*]
	 

	 	 	 
	

	Services Agreement	49	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(h)	 	The Parties hereby agree that the Independent Expert shall be granted
full discretion and independence under the terms of the Benchmarking
Agreement to perform the Benchmarking Survey in accordance with the terms
of the Benchmarking Agreement (which shall incorporate the provisions of
Schedule M).
	 
	(i)	 	In addition, the Independent Expert may be requested by any of the
Parties to provide advice with respect to any actions to improve the
Services or other aspects of the relationship arising out of the results
of the Benchmarking Survey. No Party is required or obliged, and may
decline in its sole and absolute discretion, to implement or take any
action following receipt of such advice.
	 
	11.6.	 	Termination of the Benchmarking Agreement
	 
	(a)	 	The Parties shall endeavour to include within the Benchmarking Agreement
a specific right to terminate the term of appointment of the Independent
Expert if the Independent Expert:

	 	(i)	 	fails to materially comply with the instructions and
methodologies set out in Schedule M (‘Instructions to the
Independent Expert’);
	 
	 	(ii)	 	breaches an obligation of confidentiality to either Party;
	 
	 	(iii)	 	undergoes a change in its business or affiliation that
either causes it to become a competitor of SITA SC, SITA INC, or
Equant or an Affiliate of SITA SC, SITA INC, or Equant; or
	 
	 	(iv)	 	fails to act in an independent manner. This criterion is not
intended to mean that the Independent Expert’s Benchmarking Report
may not favour the commercial interests of one Party over the
commercial interests of another Party if the data supports the
conclusions of the Benchmarking Report.

	 	 	 
	

	Services Agreement	50	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(b)	 	In the event that any of the Parties knows or becomes aware of a breach
of a term or condition of a Benchmarking Agreement by the Independent
Expert giving rise to a right of termination by the Parties under that
Agreement then, unless the right is agreed to be waived by the Parties
(such agreement to be given in the sole and absolute discretion of each
Party):

	 	(i)	 	such Party shall immediately consult and agree with the other
Party whether the breach has resulted, or is likely to result in a material
impact on the results of the related Benchmarking Survey or
Benchmarking Report; and
	 
	 	(ii)	 	the Parties shall select and appoint a replacement
Independent Expert (the “Replacement Independent Expert”) in
accordance with the provisions of clauses 11.2 and 11.3 as soon as
reasonably possible but in any event within three (3) calendar
months from the date on which the Parties agreed to terminate the
term of appointment of the Independent Expert.

	(c)	 	If the Parties agree that the breach giving rise to the right of
termination has not resulted, or is not likely to result, in a material impact on the
results of the Benchmarking Survey or Benchmarking Report, the Parties
shall immediately commence proceedings to terminate the Benchmarking
Agreement (in accordance with the provisions of the Benchmarking
Agreement) with effect from the end of the then current Contract Year (the
“Terminated Benchmark Period”). The Parties shall then instruct the
Independent Expert to complete the Benchmarking Report for such Terminated
Benchmark Period and shall implement the results and recommendations of
the Benchmarking Report in accordance with the provisions of clauses 11.7
and 11.8.
	 
	(d)	 	If the Parties agree that the breach giving rise to the right of
termination has resulted, or is likely to result, in a material impact on the results
of the Benchmarking Survey or Benchmarking Report, the Parties shall
immediately commence proceedings to terminate the Benchmarking Agreement
(in accordance with the provisions of the Benchmarking Agreement) with
immediate effect and shall then instruct the Replacement Independent
Expert to:

	 	(i)	 	prepare and present an interim Benchmarking Report (the
“Interim Benchmark Report”) in accordance with the provisions of
Schedule M and, where appropriate to compensate for lack of data,
using its skills and knowledge of market trends with respect to the
Terminated Benchmark Period. Such Interim Benchmark Report shall be
implemented by Equant as soon as reasonably possible in accordance
with the provisions of clause 11.7 and 11.8; and
	 
	 	(ii)	 	perform a Benchmarking Survey in respect of the Terminated
Benchmark Period in accordance with the provisions of clause 11.5,
and the Parties shall implement the results and recommendations of
the Benchmarking Report as soon as reasonably possible in accordance
with the provisions of clauses 11.7 and 11.8. If such
implementation occurs after the commencement of the following
Contract Year, the Parties shall make adjustments as necessary to
make it apply

	 	 	 
	

	Services Agreement	51	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	for the whole of such following Contract Year (and resulting
payments or repayments between the Parties shall be invoiced
accordingly),
	 
	 	(iii)	 	save that where the Independent Expert advises the Parties
that the remaining term of the Terminated Benchmark Period is
sufficient to perform a complete Benchmarking Survey with respect to
that Terminated Benchmark Period and the Parties reasonably agree
that their respective benefits and interests would not be reduced or
disadvantaged, then the Parties may waive the requirements of
clause 11.6(d) (i) above.

	(e)	 	In addition to the provisions of this clause, in the event of termination
of a Benchmarking Agreement prior to the expiry of the full three (3) year
contractual term, in the event that the termination occurs:

	 	(i)	 	at the end of the Contract Year, then the Parties shall
comply with the provisions of clauses 11.6(b) and 11.6(c) above; and
	 
	 	(ii)	 	prior to the end of a Contract Year, then the Parties shall
comply with the provisions of clauses 11.6(b) and 11.6(d) above.

	(f)	 	Further and in addition to the provision of this clause, following the
expiry or termination of a Benchmarking Agreement, the Parties shall use
commercially reasonable efforts to procure that the retiring Independent
Expert provides the immediately following Independent Expert with all
materials in its possession related to the Benchmarking Report, including
any database and a draft in progress of the Benchmarking Report, if
relevant.
	 
	11.7.	 	Acceptance of the Benchmarking Report

The adjustments of the Benchmarking Report shall be accepted by the Parties and
such acceptance is final, unless a Party raises a dispute pursuant to clause 29
and the dispute resolution process results in a determination that the
Independent Expert did not materially comply with the instructions and
methodology set out in Schedule M (‘Instructions to the Independent Expert’).

	11.8.	 	Implementation of the Benchmarking Report
	 
	(a)	 	Subject to clause 11.8(b), the adjustments of the Benchmarking Report
shall be incorporated by Equant within the Price Books (for the following
Contract Year), including any SITA Specific Discounts, in accordance with
clause 10 and at no cost to SITA SC, SITA INC or any SITA Group Company.
	 
	(b)	 	Equant shall not be requested or required to implement the results and
recommendations of the Independent Expert set out in the Benchmarking
Report relating to Contract Year One but the Parties shall analyse the
Benchmarking Survey for Contract Year One with a view to implementing
possible efficiencies and improvements for inclusion within the
Benchmarking Survey to be performed in Contract Year Two. No Party shall
be

	 	 	 
	

	Services Agreement	52	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	required, and may decline in its sole and
absolute discretion, to implement such
efficiencies and improvements.
	 
	11.9.	 	Benchmarking Regions
	 
	(a)	 	The number and composition of Benchmarking Regions shall be subject to
review by the Parties every three (3) years. Any amendment to the number
or composition of Benchmarking Regions shall be subject to the reasonable
agreement of the Parties based on evidence of a significant change in
market conditions since the Effective Date or the last review, whichever
is later and the Independent Expert shall be instructed accordingly by the
Parties.
	 
	(b)	 	Equant and SITA SC shall undertake a review of the Benchmarking Regions
within a period less than as provided under clause (a) above if any of the
other Parties provides evidence of a significant change in market
conditions since the Effective Date or the last review, whichever is later
and the Independent Expert shall be instructed accordingly.
	 
	(c)	 	Either Equant or SITA SC may refer the issue of the amendment of the
number of or a change in composition of Benchmarking Regions pursuant to
clause (a) above to the dispute resolution procedures set out under clause
29, if it believes that the other Party unreasonably refused to agree to
either:

	 	(i)	 	consider undertaking a review following the expiry or
termination of a Benchmarking Agreement; or
	 
	 	(ii)	 	amend the number of Benchmarking Regions based on the
evidence of a significant change in market conditions.

	11.10.	 	Benchmarking Costs
	 
	(a)	 	SITA SC and Equant shall pay all fees, costs, expenses and/or other
reimbursements incurred under the Benchmarking Agreement in equal parts
and shall retain several liability in respect of such fees, costs,
expenses and/or other reimbursements.
	 
	(b)	 	Each Party shall pay and be severally liable for all fees, costs,
expenses and/or other reimbursements incurred on its own behalf:

	 	(i)	 	under and as a result of the Benchmarking Survey,
Benchmarking Agreement, Benchmarking Report and the implementation
of the results of the Benchmarking Report (including the costs of
all third parties that a Party may elect in its sole and absolute
discretion to assist it); and
	 
	 	(ii)	 	pursuant to clause 11.4(b).

	(c)	 	In the event that SITA INC is no longer Controlled by SITA INC
Foundation, then SITA SC and SITA INC shall reasonably agree on an
allocation of SITA INC’s share of costs under the Benchmarking Agreement.

	 	 	 
	

	Services Agreement	53	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	11.11.	 	Equant and SITA SC Responsibilities
	 
	(a)	 	Equant and SITA SC each shall:
	 
	(b)	 	authorise and appoint an appropriate individual to:

	 	(i)	 	act as a single point of contact for the Independent Expert
and the other Parties with respect to activities associated with the
Benchmarking Survey; and
	 
	 	(ii)	 	carry out the obligations of SITA SC and/or SITA INC, as
applicable, and Equant with respect to the nomination and selection
of the Independent Expert under clauses 11.2 and 11.3 of this
Agreement including attending any associated or related meetings,

	 	 	 and each Party shall ensure that each of the other Parties are notified
of the contact details (including name, address and facsimile number) of
such individual appointed pursuant to this clause;
	 
	(c)	 	provide all information, including full and accurate data requested by
the Independent Expert in connection with and relevant to the Benchmarking
Survey, save that Equant shall not be required to release to the
Independent Expert any customer contracts or its costs or margins;
	 
	(d)	 	ensure the attendance by appropriate personnel at workshops/review
meetings/presentations, etc.;
	 
	(e)	 	provide adequate staffing to facilitate the Independent Expert in
conducting the Benchmarking Survey and completing the Benchmarking Report;
	 
	(f)	 	carry out with promptness and diligence any actions that are necessary or
appropriate to facilitate the Independent Expert in conducting the
Benchmarking Survey; and
	 
	(g)	 	comply with all the terms of the Benchmarking Agreement.
	 
	11.12.	 	Co-operation of the Parties

Equant and SITA SC shall formally notify and consult with each other in writing
prior to taking any independent action in respect of the Benchmarking
Agreement.

	11.13.	 	Actions During Dispute Resolution Procedures

In the event that a dispute is raised in respect of any aspect of the
Benchmarking Survey, the Parties shall continue to perform under this Agreement
as if no such dispute had been raised (including adjustment of Price Book
Prices and SITA Specific Discounts to reflect the results of the Benchmarking
Report in accordance with clause 11.8, if appropriate). If the dispute
resolution process ultimately results in a determination that the Benchmarking
Survey was in some manner defective or improper or that the Independent Expert
did not materially comply with the instructions and methodology set out in
Schedule M (‘Instructions to the Independent

	 	 	 
	

	Services Agreement	54	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

Expert’), the Parties shall reasonably agree on actions to be taken to
implement the results of the dispute resolution process.

	12.	 	PRICE TO VOLUME SURVEY
	 
	12.1.	 	Price to Volume Assessment

During the Term, a comparison of the relative weighted average net prices in
each Benchmarking Region, such prices to be measured by an index, at different
levels of volume for Distributors providing services, products and geographical
attributes that are similar to SITA SC, SITA INC and any SITA Group Companies
(the “Price to Volume Assessment”) shall be performed in accordance with the
provisions of this clause 12.

	12.2.	 	Role of the Independent Expert
	 
	(a)	 	The Parties shall, under the terms of the Benchmarking Agreement,
authorise and instruct the Independent Expert to:

	 	(i)	 	design, implement, analyse and perform the Price to Volume
Assessment;
	 
	 	(ii)	 	prepare a report (the “Price to Volume Assessment Report”)
giving full details of the analysis and results of the Price to
Volume Assessment on behalf of the Parties;
	 
	 	(iii)	 	appoint an appropriate individual to act as a single point
of contact for activities associated with the Price to Volume
Assessment;
	 
	 	(iv)	 	communicate progress to SITA SC and Equant and liaise with
their nominated project leaders or single points of contact; and
	 
	 	(v)	 	present the Price to Volume Assessment Report,

	 	 	 pursuant to and in accordance with the terms and conditions of the
Benchmarking Agreement, which shall incorporate the provisions of
Schedule M, Part II.
	 
	(b)	 	The Parties hereby agree that the Independent Expert shall be granted
full discretion and independence under the terms of the Benchmarking
Agreement to perform the Price to Volume Assessment in accordance with the
terms and conditions of the Benchmarking Agreement.
	 
	12.3.	 	Frequency of Price to Volume Assessment
	 
	(a)	 	The Parties shall instruct the Independent Expert to perform the Price to
Volume Assessment and present the Price to Volume Assessment Report on an
annual basis with respect to each Contract Year.

	 	 	 
	

	Services Agreement	55	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(b)	 	In addition to the provisions of clause 12.3(a), the Parties may agree
(in their sole and absolute discretion) to instruct the Independent Expert
to perform a Price to Volume Assessment with respect to a specified period
at any time during the Term.
	 
	12.4.	 	Acceptance of the Price to Volume Assessment Report

The results of the Price to Volume Assessment Report shall be accepted by the
Parties and such acceptance is final unless a Party initiates the Dispute
Resolution Procedures and such procedures result in a determination that the
Independent Expert did not materially comply with the instructions set out
under Schedule M, Part II.

	12.5.	 	Termination of a Benchmarking Agreement
	 
	(a)	 	In the event of termination of the appointment of the Independent Expert
pursuant to the provisions of clause 11.6 prior to the publication of the
Price to Volume Assessment Report, then the Parties shall instruct the
Replacement Independent Expert to perform and prepare a Price to Volume
Assessment Report with respect to the Terminated Benchmarking Period as
soon as reasonably possible, which the Parties shall accept in accordance
with the provisions of clause 12.4.
	 
	(b)	 	Further to and in addition to the provisions of this clause, following
the expiry or termination of a Benchmarking Agreement, the Parties shall
use commercially reasonable efforts to procure that the retiring
Independent Expert provides the immediately following Independent Expert
with all materials in its possession related to the Price to Volume
Assessment (including any database, modelled data and a draft in progress
of the Price to Volume Assessment Report, if relevant).
	 
	12.6.	 	Allowable Differential
	 
	(a)	 	The percentage price differential allowed between the results generated
pursuant to the MFN Tests set out under Schedule N (‘Instructions to the
MFN Evaluator’), at a given level of net annual revenue, shall be the
“Allowable Differential”.
	 
	(b)	 	In consultation with the Independent Expert, the Parties shall develop
curves measuring the Allowable Differential at various levels of net
annual revenue, [*] of the forecast net aggregated
annual revenue of SITA SC, SITA INC and the SITA Group Companies for the
respective Contract Year for (A) Third Party Distributors; and (B) NNI
Customers, in each Benchmarking Region (the “Allowable Differential
Curves”) in accordance with the following:

	 	(i)	 	the Parties shall agree a reasonable number of break points
in terms of net annual revenue (the “Break Points”). Such
Break Points shall include but not be limited to [*] of the aggregated net annual revenue of SITA SC, SITA
INC and the SITA Group Companies;
	 
	 	(ii)	 	the Independent Expert shall look-up the Allowable
Differential at each of the Break Points using relative prices
identified at different levels of volume in the Price to Volume
Curves;

	 	 	 
	

	Services Agreement	56	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	if the difference between the Allowable Differentials at two
consecutive Break Points is [*] then
the Parties must agree to increase the number of Break Points and the procedures set out in
clause 12.6(b)(ii) shall be repeated until the difference is [*]; and
	 
	 	(iv)	 	the Allowable Differential Curves shall then be established

	 	(A)	 	[*]

	 	(B)	 	[*]

	13.	 	MOST FAVOURED NATION PRICING
	 
	13.1.	 	Most Favoured Nation Pricing Evaluation
	 
	(a)	 	During the Term, a comparison (taking into account the Allowable
Differential and using the MFN Tests) of:

	 	(i)	 	the Net Price Book Prices for Priced Services; and
	 
	 	(ii)	 	the net prices in the Contract Year provided by Equant to
other [*] sales channels where the net prices have
been adapted for the differences between the services provided by
Equant to SITA SC, SITA INC and the SITA Group Companies and the
services provided by Equant to the other [*] sales
channels; and

	 	 	 (the “MFN Evaluation”) shall be performed in accordance with the
provisions of this clause 13.
	 
	(b)	 	Where the MFN Evaluation determines (taking into account the Allowable
Differential) that the net prices provided by Equant to other [*] sales channels are such that one or more of the MFN Tests are
failed, then Equant shall be required to:

	 	(i)	 	develop a MFN Revised Net Price Book that passes all MFN
Tests (“MFN Revised Net Price Book Prices”);
	 
	 	(ii)	 	make a retrospective refund (a “MFN Refund”) to SITA with
respect to the appropriate Contract Year as calculated under clause
2.6 of Schedule N (‘Instructions to the MFN Evaluator’); and
	 
	 	(iii)	 	develop a Net Price Book for the following Contract Year
that would have passed the MFN Tests in the prior Contract Year.

	 	 	 
	

	Services Agreement	57	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	13.2.	 	Nomination and selection of the MFN Evaluator

The Parties shall, in accordance with the provisions of Schedule K, nominate
and select an independent third party to perform the MFN Evaluation (the “MFN
Evaluator”).

	13.3.	 	Appointment of the MFN Evaluator
	 
	(a)	 	Following the selection of an MFN Evaluator, the Parties shall enter into
a written agreement with the MFN Evaluator for a period of three (3) years
(the “MFN Agreement”).
	 
	(b)	 	At least twelve (12) calendar months prior to the end of the term of a
MFN Agreement, the Parties shall repeat the provisions of clauses 13.2 and
13.3.
	 
	(c)	 	Subject to the provisions of clause 13.7, an MFN Evaluator shall be
appointed under the terms and conditions of a MFN Agreement at all times
during the Term.
	 
	(d)	 	Throughout the Term, SITA SC shall represent the interests of SITA INC in
connection with the MFN Evaluation and under the MFN Agreement. As
promptly as practical after the date on which SITA INC is no longer
Controlled by the SITA INC Foundation, the Parties will negotiate in good
faith appropriate amendments to this clause concerning the representation
of SITA INC by SITA SC.
	 
	13.4.	 	Role of the MFN Evaluator
	 
	(a)	 	The Parties shall, under the terms of the MFN Agreement, authorise and
instruct the MFN Evaluator to:

	 	(i)	 	design, implement, analyse and perform the MFN Evaluation;
	 
	 	(ii)	 	prepare two reports (the “MFN Evaluation Report” and the “MFN
Certification Report”) giving full details of the analysis and
results of the MFN Evaluation on behalf of the Parties;
	 
	 	(iii)	 	appoint an appropriate individual to act as a single point
of contact for activities associated with the MFN Evaluation;
	 
	 	(iv)	 	communicate progress to SITA SC and/or SITA INC, as
applicable, and Equant and liaise with their nominated project
leaders or single points of contact; and
	 
	 	(v)	 	present the MFN Evaluation Report and the MFN Certification
Report,

	 	 	pursuant to and in accordance with the terms and conditions of the MFN
Agreement, which shall incorporate the provisions of Schedule N.
	 
	(b)	 	The Parties hereby agree that the MFN Evaluator shall be granted full
discretion and independence under the terms and conditions of the MFN
Agreement to perform the MFN Evaluation in accordance with the terms and
conditions of the MFN Agreement.

	 	 	 
	

	Services Agreement	58	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	13.5.	 	Frequency of MFN Evaluation

	 	(a)	 	With effect from the Effective Date, the Parties shall instruct the MFN
Evaluator to perform a MFN Evaluation on an annual basis with respect to
each Contract Year and in accordance with the timescale set out in
Schedule M (‘Price Book Update Timescale’).
	 
	 	(b)	 	In addition to the provisions of clause 13.5(a), the Parties may agree
(in their sole and absolute discretion) to instruct the MFN Evaluator to
perform a MFN Evaluation with respect to a specified period at any time
during the Term.

	13.6.	 	Termination of a Benchmarking Agreement

In the event of termination of the appointment of the Independent Expert
pursuant to the provisions of clause 13.7 prior to the publication of the Price
to Volume Assessment Report, then the Parties shall instruct the MFN Evaluator
to prepare the MFN Evaluation Report and MFN Certification Report using the
Price to Volume Assessment Report relating to the immediately preceding
Contract Year and the Parties shall accept such report in accordance with the
provisions of clauses 13.8 and 13.9 and Equant shall implement the results and
recommendations of the MFN Evaluation Report in accordance with the provisions
of clauses 13.8 and 13.9.

	13.7.	 	Termination of a MFN Agreement
	 
	(a)	 	The Parties shall endeavour to include within the MFN Agreement a
specific right to terminate the MFN Agreement if the MFN Evaluator:

	 	(i)	 	fails to materially comply with the instructions and
methodologies set out in Schedule N (‘Instructions to the MFN
Evaluator’);
	 
	 	(ii)	 	breaches an obligation of confidentiality to either Party;
	 
	 	(iii)	 	undergoes a change in its business or affiliation that
either causes it to become a competitor of SITA SC, SITA INC, Equant
or an Affiliate of SITA SC, SITA INC or Equant or an Affiliate of
Equant; or
	 
	 	(iv)	 	fails to act in an independent manner (this criterion is not
intended to mean that the MFN Evaluation Report and MFN
Certification Report may not favour the commercial interests of one
Party over the commercial interests of another Party if the data
supports the conclusions of the MFN Assessment Report).

	(b)	 	In the event that any of the Parties knows or becomes aware of a breach
of a term or condition of a MFN Agreement by the MFN Evaluator giving rise
to a right of termination by the Parties under that agreement, then,
unless the right of termination is agreed to be waived by the Parties
(such agreement to be given in the sole and absolute discretion of each
Party):

	 	(i)	 	such Party shall immediately consult and agree with the other
Party whether the breach has or is likely to result in a material
impact on the results of the related MFN Evaluation; and

	 	 	 
	

	Services Agreement	59	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ii)	 	the Parties shall select and appoint a replacement MFN
Evaluator (the “Replacement MFN Evaluator”) in accordance with the
provisions of clauses 13.2 and 13.3 as soon as reasonably possible
and in any event within three (3) calendar months of the date on
which the agreement of the Parties is reached that the MFN Agreement
should be terminated.

	(c)	 	In the event that the Parties agree that the breach giving rise to the
right of termination has not or is not likely to result in a material
impact on the results of the MFN Evaluation, the Parties shall immediately
commence proceedings to terminate the MFN Agreement (in accordance with
the provisions of the MFN Agreement) with effect from the then current
Contract Year (the “Terminated MFN Period”). The Parties shall then
instruct the MFN Evaluator to complete the MFN Evaluation, MFN Evaluation
Report and MFN Certification Report for such Terminated MFN Period and
shall implement the results and recommendations of the MFN Report in
accordance with the provisions of clauses 13.8 and 13.9.
	 
	(d)	 	In the event that the Parties agree that the breach has or is likely to
result in a material impact on the results of the MFN Evaluation, the
Parties shall immediately commence proceedings to terminate the MFN
Agreement (in accordance with the provisions of the MFN Agreement) with
immediate effect and Equant shall:

	 	(i)	 	endeavour to estimate any MFN Refunds that would have been
due to SITA SC and/or SITA INC, as applicable, if the MFN Evaluation
had been completed according to the Schedule N (‘Instructions to the
MFN Evaluator’) and shall make such refund in accordance with the
provisions of clause 13.9;
	 
	 	(ii)	 	in its reasonable discretion, endeavour to estimate the
required adjustments to the Net Price Book Prices for Priced
Services for the following Contract Year and shall implement such
adjustments in accordance with clause 13.9; and
	 
	 	(iii)	 	serve written notice to SITA SC and/or SITA INC, as
applicable, of Equant’s compliance with and completion of the
provisions of clauses 13.7(d)(i) and 13.7(d)(ii) above, such notice to be
signed by a representative of Equant currently serving on the
Executive Committee;

	 	 	save that where the Replacement MFN Evaluator advises the Parties that
the remaining term of the Terminated MFN Period is sufficient to perform
a complete MFN Evaluation with respect to the Terminated MFN Period and
the Parties agree (in their sole and absolute discretion) that their
individual benefits and interests would not be reduced or disadvantaged,
then the Parties shall waive the requirements of clauses 13.7(d)(i) to 13.7(d)(iii)
above.
	 
	(e)	 	Further to the provisions of clause 13.7(b), the Parties shall also
instruct the Replacement MFN Evaluator to perform a MFN Evaluation with
respect to the Terminated MFN Period in accordance with the provisions of
clause 13 and Equant shall implement the results and recommendations of
the MFN Evaluation Report and MFN Certification Report as soon as
reasonably possible in accordance with the provisions of clauses 13.8

	 	 	 
	

	Services Agreement	60	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	and 13.9 and resulting payments or repayments between the Parties shall
be invoiced accordingly.
	 
	(f)	 	In addition to the provisions of this clause, in the event of termination
of a MFN Agreement prior to the expiry of the full three (3) year
contractual term, in the event that the termination occurs:

	 	(i)	 	at the end of the Contract Year, then the Parties shall
comply with the provisions of clauses 13.7(b) and 13.7(c) above; and
	 
	 	(ii)	 	prior to the end of a Contract Year, then the Parties shall
comply with the provision of clauses 13.7(b) and 13.7(d) above.

	(g)	 	Further to and in addition to the provisions of this clause, following
the expiry or termination of an MFN Agreement, the Parties shall use
commercially reasonable efforts to procure that the retiring MFN Evaluator
provides the immediately following MFN Evaluator with all materials in its
possession related to the MFN Evaluation (including any database, modelled
data and a draft in progress of the MFN Evaluation Report and the MFN
Certification Report, if relevant).
	 
	13.8.	 	Acceptance of the results of the MFN Evaluation Report and the MFN Certification Report

The results and determination of the MFN Refund of the MFN Evaluation Report
and the MFN Certification Report shall be accepted by the Parties and such
acceptance is final unless a Party initiates the Dispute Resolution Procedures
and such process results in a determination that the MFN Evaluator did not
materially comply with the instructions and methodology set out in Schedule N
(‘Instructions to the MFN Evaluator’).

	13.9.	 	Implementation of the MFN Evaluation Report and the MFN Certification
Report
	 
	(a)	 	The MFN Refund for each Benchmarking Region as reported in the MFN
Certification Report shall be credited to SITA SC and/or SITA INC, as
applicable, by Equant in accordance with the provisions of clause 10.
	 
	(b)	 	The results of the MFN Evaluation Report and MFN Certification Report
shall be incorporated by Equant within the Price Books for the following
Contract Year including any SITA Specific Discounts in accordance with the
provisions of clause 10 and at no cost to SITA SC, SITA INC or any SITA
Group Company.
	 
	13.10.	 	Costs of MFN Evaluation
	 
	(a)	 	SITA SC and Equant shall pay all fees, costs, expenses and/or other
reimbursements incurred by the MFN Evaluator in connection with the
performance and presentation of the MFN Evaluation, MFN Evaluation Report
and MFN Certification Report in equal parts and shall retain several
liability in respect of such fees, costs, expenses and/or other
reimbursements.

	 	 	 
	

	Services Agreement	61	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(b)	 	Each Party shall pay and be severally liable for all fees, costs,
expenses and/or other reimbursements incurred on its own behalf.
	 
	13.11.	 	Equant and SITA SC Responsibilities

Equant and SITA SC each shall:

	(a)	 	authorise and appoint an appropriate individual to act as a single point
of contact for the MFN Evaluator and the other Parties with respect to
activities associated with the MFN Evaluation and each Party shall ensure
that each of the other Parties are notified of the contact details
(including name, address and facsimile number) of such individual
appointed pursuant to this clause;
	 
	(b)	 	provide all information, including full and accurate data requested by
the MFN Evaluator in connection with and relevant to the MFN Evaluation;
	 
	(c)	 	reasonably provide access to databases and systems requested by the MFN
Evaluator in connection with and relevant to the MFN Evaluation;
	 
	(d)	 	ensure the attendance by appropriate personnel at workshops, review
meetings and presentations; and
	 
	(e)	 	provide adequate staffing to facilitate the MFN Evaluator in conducting
the MFN Evaluation.
	 
	13.12.	 	Ex-parte communications

Equant and SITA SC shall not enter into ex-parte communication or
correspondence with the MFN Evaluator or nominated MFN Evaluators throughout
the nomination process and term of appointment of such MFN Evaluator pursuant
to this clause 13.

	13.13.	 	Actions during Dispute Resolution Procedures

In the event that a dispute is raised in respect of any aspect of the MFN
Evaluation, the Parties shall continue to perform under this Agreement as if no
dispute had been raised (including calculation and payment of the MFN Refunds
and adjustment of Price Book Prices and SITA Specific Discounts to reflect the
results of the MFN Evaluation Report, Interim MFN Evaluation Report MFN
Certification Report and Interim MFN Certification Report in accordance with
the provisions of clause 10). If the Dispute Resolution Procedures ultimately
result in a determination that the Price to Volume Curve Assessment or the MFN
Evaluation was in some manner defective or improper or the Independent Expert
or the MFN Evaluator did not materially comply with their respective
instructions set out under Schedule M (‘Instructions to the Independent
Expert’) and Schedule N (‘Instructions to the MFN Evaluator’), the Parties
shall reasonably agree on actions to be taken to implement the results of the
Dispute Resolution Procedures.

	 	 	 
	

	Services Agreement	62	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	14.	 	MINIMUM REVENUE COMMITMENT
	 
	(a)	 	The ‘Minimum Revenue Commitment’ (or ‘MRC’) is equal to:

	 	(i)	 	the Year Zero Cost Base, multiplied by 585 and divided by 610
for Contract Year One; and
	 
	 	(ii)	 	the Year Zero Cost Base, multiplied by 575 and divided by 610
for Contract Year Two.

	(b)	 	The following sums shall be deducted from the Minimum Revenue Commitment
(each sum a ‘Reduction Amount’):

	 	(i)	 	[ * ]
	 
	 	(ii)	 	[ * ]
	 
	 	(iii)	 	[ * ]
	 
	 	(iv)	 	[ * ]
	 
	 	(v)	 	[ * ]
	 
	 	(vi)	 	[ * ]
	 
	 	(vii)	 	[ * ]
	 
	 	(viii)	 	[ * ]

	 	 	 
	

	Services Agreement	63	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ix)	 	[*]
	 
	 	(x)	 	such other sum as may be agreed in writing between the
Parties.

	15.	 	NETWORK ACTIVITY FORECASTS
	 
	15.1.	 	Network Activity Forecasts
	 
	(a)	 	With effect from 20th October, 2001, SITA SC and/or SITA INC, as
applicable, shall provide a Quarterly Network Activity Forecast to Equant
on the following dates in each Contract Year:

	 	(i)	 	20th January;
	 
	 	(ii)	 	20th April;

	 
	 	(iii)	 	20th July; and

	 	 	 
	

	Services Agreement	67	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iv)	 	20th October (the “Quarterly Forecast Dates”).

	(b)	 	SITA SC and SITA INC shall provide an Annual Network Activity Forecast to
Equant on the 20th January of each Contract Year (the “Annual Forecast
Date”).
	 
	(c)	 	In the event that SITA SC or SITA INC provides a Network Activity
Forecast to Equant after the relevant Forecast Date, the Network Activity
Forecast shall apply with respect to the first day of the calendar month
immediately following the month in which SITA SC or SITA INC actually
provides the Network Activity Forecast to Equant. In addition, the
previous Network Activity Forecast shall remain in effect until such time
as SITA SC and/or SITA INC provide the updated Network Activity Forecast.
	 
	(d)	 	At least thirty (30) days prior to the relevant Forecast Date, Equant
shall provide to SITA SC and/or SITA INC, as applicable:

	 	(i)	 	complete and accurate relevant historical data relating to
connections, traffic and other Network Activity forecasting
parameters (as set out in Schedule N) for the most recent eighteen
(18) calendar months immediately preceding the relevant Forecast
Date; and
	 
	 	(ii)	 	a copy of the required electronic format agreed between the
Parties pursuant to clause 15.1(f).

	(e)	 	Equant hereby agrees to make improvements to the accuracy, completeness,
and timeliness of the historical data with respect to and in line with
changing forecast details and granularity. The Parties agree to work
together to improve forecasting and planning processes as well as
information exchange to facilitate these processes.
	 
	(f)	 	Each Network Activity Forecast shall comply with the parameters and
contain the level of detail specified in Schedule Q (‘Forecasting’) and
shall be generated using a computer software programme or application
agreed between the Parties. As of the Effective Date, Equant and SITA SC
and/or SITA INC, as applicable, agree that the Network Activity Forecasts
shall be provided using MS Excel spreadsheet formats. Equant may upon SITA
SC’s reasonable agreement, change the required format of the Network
Activity Forecasts to a format generated using a computer software
programme or applicable other than as agreed at the Effective Date. Such
alternative computer software programme or application shall be a computer
software or application which is either (i) generally accepted standard
office productivity software or (ii) could be contained within a specific
forecasting tool (to be provided by Equant at no cost to SITA) as either a
desktop or web-based application. In the event that Equant requires or
requests SITA SC and/or SITA INC, as applicable, to provide any Network
Activity Forecasts in a format generated using a computer software
programme or application other than that as at the Effective Date, such
request shall be made at least forty-five (45) calendar days prior to the
Forecast Date and Equant shall provide all relevant software (including up
to five (5) licences for use) and training for up to five (5) full-time
staff with respect to the use of such software, to SITA SC, SITA INC and
the SITA Group Companies at no cost or charge to SITA SC, SITA INC or any
of the SITA Group Companies.

	 	 	 
	

	Services Agreement	68	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(g)	 	Any modifications to the Forecast Dates or Schedule Q shall be agreed by
the Parties, acting reasonably.
	 
	15.2.	 	Other information
	 
	(a)	 	On the 20th October of each Contract Year, SITA SC and/or SITA INC, as
applicable, shall provide to Equant details of their forecast use of the
following:

	 	(i)	 	professional services or similar services that are not
Network Services, where relevant, with respect to each Country; and
	 
	 	(ii)	 	Pass-Through Expenses and other costs managed by Equant on
SITA SC and/or SITA INC’s behalf at a reasonable level of detail;
and
	 
	 	(iii)	 	where applicable, forecast costs for contracted outsourced
networks managed by Equant on behalf of SITA SC and/or SITA INC but
not yet migrated to Equant’s network.

	(b)	 	SITA SC shall also provide to Equant relevant updates upon material
changes to the original forecast levels, whether foreseen independently or
as a result of advice from Equant due to observed changes in SITA’s actual
resource utilisation. The Parties agree to exchange relevant information
on these categories to facilitate planning and budgeting.
	 
	(c)	 	Any amendments or modifications to the frequency or level of detail
required in the supplemental forecasts provided pursuant to clause (b)
above shall be mutually agreed by the Parties, acting reasonably.
	 
	16.	 	RECOGNISABLE COSTS
	 
	16.1.	 	Significant Forecast Deviation and Recognisable Costs
	 
	(a)	 	Upon receipt of each Quarterly Network Activity Forecast from SITA SC
and/or SITA INC, as applicable, Equant shall review the Quarterly Network
Activity Forecast to identify any costs and expenses that would be
incurred by Equant as a result of the Quarterly Network Activity Forecast for a Service or product
in each Country Group in the event that:

	 	(i)	 	the value of the actual activity of SITA SC, SITA INC and the
SITA Group Companies achieved during the period of time relating to
such Quarterly Network Activity Forecast (the “Achieved Activity”)
for a Service or product in a Country Group is less than the value
of the forecast activity for such Service or product in such Country
Group set out in the relevant Quarterly Network Activity Forecast
(the “Quarterly Network Activity Forecast Value”) by a minimum of
ten per cent. of the relevant Quarterly Network Activity Forecast
Value; and
	 
	 	(ii)	 	Equant’s other sales channels (both internal and/or
external),on the basis of their forecasted growth, would be unable
to accommodate, utilise or absorb the activity forming the
difference between:

	 	 	 
	

	Services Agreement	69	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(A)	 	the Achieved Activity; and

	 	(B)	 	the Quarterly Network Activity Forecast Value,
	 
	 	during a period of six (6) months,

	 	 	(a “Significant Forecast Deviation”).

	(b)	 	Subject to clause 10.5(b)(i), in the event of a Significant Forecast Deviation, any cost or expense
incurred by Equant on behalf of SITA SC, SITA INC and the SITA Group
Companies in order to accommodate the Quarterly Network Activity Forecast
and that is greater than one hundred thousand U.S. Dollars ($100,000), calculated on the basis of
an ongoing cost or expense where any capital expenditure is converted to
an ongoing cost or expense at the rate of depreciation in accordance with
generally accepted accounting practices, shall be a “Recognisable Cost”
provided that the value of any ongoing cost or expense is limited to the
amount of such cost or expense over a period of twelve (12) consecutive
calendar months commencing from the date on which such cost or expense was
incurred.
	 
	(c)	 	Within twenty (20) calendar days of receipt of a Quarterly Network
Activity Forecast, Equant shall provide SITA SC and/or SITA INC, as
applicable a written report setting out a full analysis of the Quarterly
Network Activity Forecast with respect to any Recognisable Costs, such
report to include:

	 	(i)	 	a definition of the range of activity in respect of which any
Recognisable Cost could be incurred, including thresholds for
increases and decreases in the Recognisable Cost that could be
incurred;
	 
	 	(ii)	 	growth forecast for all other sales channels in respect of
each situation or area in respect of which any Recognisable Cost
could be incurred;
	 
	 	(iii)	 	the costs and expenses forming such Recognisable Cost giving
full details of the nature, location and amount;
	 
	 	(iv)	 	the reasons for the Recognisable Costs, including drivers
(for example, the number and type of equipment) and the activity
trigger levels;
	 
	 	(v)	 	the latest date on which, in the event that SITA SC and/or
SITA INC, as applicable, do not amend or revise their Quarterly
Network Activity Forecast pursuant to clause 16.2, the Recognisable
Cost would be incurred by Equant (the “Commitment Date”);
	 
	 	(vi)	 	alternative methods and strategies for limiting the exposure
and amount of SITA SC and/or SITA INC, as applicable, to
Recognisable Costs together with the date on which such alternative
method or strategy must be implemented in order to limit the
exposure and amount of SITA SC and/or SITA INC, as applicable, to
Recognisable Costs (the “Alternative Commitment Date”),

	 	 	(the “Evaluation Paper”).

	 	 	 
	

	Services Agreement	70	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(d)	 	Within twenty (20) calendar days following the receipt of a Quarterly
Network Activity Forecast, Equant shall also provide an Evaluation Paper
to SITA SC and/or SITA INC, as applicable, in respect of any Recognisable
Costs identified in connection with the previous four (4) Quarterly
Network Activity Forecasts provided by SITA SC and/or SITA INC, as
applicable.
	 
	(e)	 	Within twenty (20) calendar days following receipt of an Evaluation
Paper, SITA SC and/or SITA INC, as applicable, shall provide a written
response to Equant with respect to the Recognisable Costs identified
within the Evaluation Paper and the Parties shall reasonably agree, the
identification of any cost or expense in order to accommodate the
Quarterly Network Activity Forecast as Recognisable Costs. Such agreement
on the part of SITA SC and/or SITA INC is subject to the provisions of
clause 16.1(g).
	 
	(f)	 	SITA SC and/or SITA INC shall provide Equant reasonable notice if SITA SC
and/or SITA INC, as applicable, accepts an alternative strategy to limit
exposure to Recognisable Costs proposed by Equant, or amends, edits or
provides new or revised versions of the Quarterly Network Activity
Forecast with respect to a Recognisable Cost (a “Revised Forecast”).
Equant shall then (within a reasonable time) evaluate the Revised Forecast
and provide SITA SC and/or SITA INC, as applicable, with an Evaluation
Paper setting out changes, if any, in respect of Recognisable Costs with
respect to the revised portion of such Revised Forecast.
	 
	(g)	 	Equant shall obtain the written authorisation of SITA SC and/or SITA INC,
if applicable, such authorisation to be obtained on either the Commitment
Date or the Alternative Commitment Date prior to incurring any
Recognisable Costs.
	 
	(h)	 	Equant shall identify any aspect of the Quarterly Network Activity
Forecast that it deems to require a SITA specific investment or investment
being made solely on behalf of SITA SC and/or SITA INC. In the event that Equant elects not
to make such investment itself, such investment shall be escalated to the
Network Planning Committee for consideration of potential funding by SITA SC and/or SITA INC, as applicable.

	 
	(i)	 	If the Achieved Activity is greater than the Network Forecast, the
Parties shall mutually agree the appropriate treatment of any costs that
might be associated with such over-performance.
	 
	16.2.	 	Mitigation of Recognisable Costs
	 
	(a)	 	SITA SC and/or SITA INC, as applicable, shall retain the right to amend,
edit or provide new or revised versions of the Quarterly Network Activity
Forecast with respect to the Recognisable Cost from the respective
Forecast Date until and including the later of either (i) the Commitment
Date or (ii) the Alternative Commitment Date.
	 
	(b)	 	If at any time on or after a Commitment Date or Alternative Commitment
Date, it is brought to the actual knowledge of SITA SC and/or SITA INC, as
applicable, that the Achieved Activity will be less than the Quarterly
Network Activity Forecast Value, SITA

	 	 	 
	

	Services Agreement	71	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	SC and/or SITA INC, as applicable, shall promptly notify Equant
and Equant shall use commercially reasonable efforts to minimise
any resulting Recognisable Costs.
	 
	16.3.	 	Payments in respect of Recognisable Costs
	 
	(a)	 	The monthly amount payable by SITA SC and/or SITA INC, as applicable,
from the date on which the Recognisable Costs occur and for a maximum
period of twelve (12) calendar months, the “Recognisable Cost Payment” for
each month of the Duration to Equant shall be equal to:
	 
	 	 	[*]
	 
	(c)	 	Equant shall use commercially reasonable efforts to assist SITA SC and/or
SITA INC in the minimisation of the Recognisable Costs by absorbing such
costs through its other channels.

	 	 	 
	

	Services Agreement	72	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	16.4.	 	Payment and semi-annual summaries
	 
	(a)	 	At the same time as it provides the invoice noted below, Equant shall at,
the end of each half Contract Year, provide SITA SC and/or SITA INC, as
applicable, a consolidated summary and review of the Recognisable Costs
incurred throughout that Contract Year.
	 
	(b)	 	Equant shall invoice SITA SC and/or SITA INC, as applicable, at the end
of each month for any Recognisable Costs incurred by Equant throughout
that Contract Year in accordance with the procedure set out under clause
18. This invoice shall include all appropriate parameters, calculations,
and supporting documentation relevant to the invoiced charges.
	 
	16.5.	 	Minimum Revenue Commitment

The value of the Minimum Revenue Commitment shall be reduced by the value of
any Recognisable Cost Payment paid by SITA SC and/or SITA INC, as applicable,
to Equant during the appropriate Contract Year.

	16.6.	 	Limitation on liability
	 
	(a)	 	SITA SC and/or SITA INC, as applicable, shall not be required to make
Recognisable Cost Payments in respect of a Recognisable Cost where:

	 	(i)	 	Equant have failed to identify such Recognisable Cost to SITA
SC and/or SITA INC in an Evaluation Paper; and/or
	 
	 	(ii)	 	Equant have incurred such Recognisable Cost without the prior
written authorisation of SITA SC and/or SITA INC, as applicable.

	(b)	 	This clause sets out the sole rights of Equant with respect to its right
of reimbursement of costs incurred as a result of any deviation between
the Achieved Activity and the related Quarterly Network Activity Value.
	 
	17.	 	RELIANCE ON HISTORICAL DATA
	 
	(a)	 	The Parties hereby acknowledge and agree that the Network Activity
Forecasts provided by SITA SC and/or SITA INC, as applicable are based in
part on the accuracy and completeness of the historical data provided by
Equant to SITA SC and/or SITA INC, as applicable, pursuant to clause
15.1(d) (the “Historical Data”). SITA SC and/or SITA INC, as applicable,
shall retain the right to initiate Dispute Resolution Proceedings with
respect to the accuracy and completeness of all or any part of the
Historical Data. Save to the extent that such Historical Data was created
prior to the Effective Date (where, for the avoidance of doubt, Historical
Data provided to SITA SC and/or SITA INC after the date which is eighteen
calendar months (18) after the Effective Date shall be wholly created or
generated by Equant after the Effective Date), in the event that all or
any part of the Historical Data is found to be either materially
incomplete or inaccurate pursuant to the Dispute Resolution Process then:

	 	 	 
	

	Services Agreement	73	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	SITA SC and/or SITA INC, as applicable, shall not be required
to make payments in respect of related Recognisable Costs to the
extent such Recognisable Costs were incurred as a result of such
material inaccuracy or incompleteness; and
	 
	 	(ii)	 	any other adjustments to the Service Charges or volume as
agreed between the Parties shall be implemented.

	18.	 	INVOICING AND PAYMENT
	 
	18.1.	 	Invoicing
	 
	(a)	 	Equant shall invoice the Service Charges to SITA SC (or such other SITA
Group Company as set out in clause 9.2) for the Services rendered by
Equant, along with other amounts payable under this Agreement:

	 	(i)	 	in respect of each calendar month in arrears;
	 
	 	(ii)	 	in US Dollars, unless the Parties agree on a case by case
basis that specific invoices will be rendered in a currency other
than US Dollars;
	 
	 	(iii)	 	unless otherwise agreed by the Parties, in both hard copy
and electronic format;
	 
	 	(iv)	 	not later than the twenty-fourth day of each calendar month
in respect of the invoiced period; and
	 
	 	(v)	 	in respect of any periodic Service Charges, on a calendar
month basis in arrears and apportioned on a day to day basis for any
partial month usage in accordance with the Cutover and Termination Rules set out in Schedule B (‘Price Books’), Part II.

	(b)	 	Each invoice, together with the Billing Information, SITA Mediation
Files, Reconciliation Report and Detailed Billing Information relating to
the invoiced period shall be delivered to the SITA SC Representative
and/or the SITA INC Representative, as applicable, in accordance with the
Billing Mediation Service Level.
	 
	(c)	 	For the purposes of this clause 18, delivery by Equant to SITA SC and/or
SITA INC, as applicable, of the SITA Mediation Files, and the Detailed
Billing Information shall be satisfied by the provision of electronic
(read-only) access to such information by Equant to SITA SC and/or SITA
INC, as applicable.
	 
	18.2.	 	Amendments to Billed Entities
	 
	(a)	 	Subject to clause 18.2(b) and clause 6.3, if SITA SC and/or SITA INC, as
applicable, in accordance with clause 9.2 above, requests Equant to amend,
alter or change the Billed Entities:

	 	(i)	 	SITA SC and/or SITA INC shall provide Equant reasonably
detailed specifications for the requested amendment, alteration or
change;

	 	 	 
	

	Services Agreement	74	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ii)	 	Equant shall notify SITA SC and/or SITA INC, as appropriate,
in respect of the period of time in which such amendment, alteration
or change can be implemented during the normal course of business
and whether Equant will incur a material cost in the implementation
thereof;
	 
	 	(iii)	 	if no material cost will be incurred by Equant in making the
requested amendment, alteration, or change and the time specified by
Equant as being required to implement the requested amendment,
alteration, or change in the normal course of business is confirmed
in writing by SITA SC and or SITA INC as being acceptable to SITA SC
and/or SITA INC, as applicable, then Equant shall implement such
changes (using commercially reasonable efforts to do so within the
specified time);
	 
	 	(iv)	 	if the time specified by Equant as being required to
implement the requested amendment, alteration, or change in the
normal course of business is not acceptable to SITA SC and/or SITA
INC, as applicable, then the Parties shall discuss and attempt to
agree (any such agreement to be confirmed in writing by the Parties)
either revised specifications that Equant can implement in the
normal course of business in the period of time requested by SITA SC
and/or SITA INC, as applicable, or for SITA SC and/or SITA INC, as
applicable, to reimburse Equant’s expenses in expediting the
requested amendment, alteration, or change; and
	 
	 	(v)	 	if a material cost will be incurred by Equant in making the
requested amendment, alteration, or change, the Parties shall
discuss and attempt to agree (any such agreement to be confirmed in
writing by the Parties) either revised specifications that Equant
can implement without incurring material cost (or with incurring
lesser material cost) or for SITA SC and/or SITA INC to reimburse
Equant’s expenses in implementing the requested amendment,
alteration, or change.

	(b)	 	Subject to clause 18.2(c) and clause 6.3, the Parties agree that where
any amendments, alterations or changes to the Billed Entities, Billing
Entities and/or Remitting Entities are requested by SITA SC and/or SITA
INC at any time during the initial twelve (12) months of this Agreement,
such requests shall be implemented by Equant as soon as reasonably
possible at no cost, charge or expense to either SITA SC and/or SITA INC.
	 
	(c)	 	Subject to clause 6.3, in the event that a request by SITA SC and/or SITA
INC, as appropriate, is made in respect of an amendment, alteration or
change to a Billing Entity, Billed Entity or Remitting Entity during the
initial twelve (12) months of this agreement and such amendment,
alteration or change will result in a material cost to Equant that is
attributable to the development of billing procedures and/or systems which
are primarily for the use of SITA SC and/or SITA INC, then the respective
Parties will comply with the provisions of clause 18.2(a)(v).
	 
	(d)	 	Subject to clause 6.3, in the event that a Transfer pursuant to and in
accordance with the terms and conditions of the Transition and Management
Agreement results in an

	 	 	 
	

	Services Agreement	75	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	amendment, alteration or change to a Billing
Entity, Billed Entity or Remitting Entity neither
Equant, SITA SC, SITA INC or any of the SITA Group
Companies shall be liable to pay any amounts, costs
or expenses to any other Party as a result of an
amendment, alteration or change to a Billing
Entity, Billed Entity or Remitting Entity arising
as a result of such Transfer.

	18.3.	 	Invoice Content and Format

Each invoice shall be in the format substantially specified in Schedule S, or
as Equant and SITA SC (in respect of itself and invoices rendered to the SITA
Group Companies, including SITA SC while SITA SC is Controlled by the SITA INC
Foundation) and/or SITA INC (if SITA INC is no longer Controlled by the SITA
INC Foundation) otherwise reasonably agree in writing.

	18.4.	 	Detailed Billing Files and Mediation Data
	 
	(a)	 	Each invoice shall comply with the terms of the Billing Mediation Service
Level and shall be accompanied by:

	 	(i)	 	reports and files setting out
[*] billing information [*]);
	 
	 	(ii)	 	electronic (read only) access to the SITA Mediation Files;
	 
	 	(iii)	 	subject to clause 18.4(b), a statement reconciling the
activity billed to SITA SC or SITA INC, as appropriate, with the
activity recorded in the SITA Mediation Files (the “Reconciliation
Report”) in respect of the period invoiced; and
	 
	 	(iv)	 	electronic (read only) access to detailed billing information
on both a global and per country basis on a level of granularity
that will allow SITA SC and/or SITA INC to identify and verify
levels of activity in respect of [*]).

	(b)	 	The Parties understand that as of the Effective Date Equant does not have
the capability to deliver a full and complete Reconciliation Report.
Accordingly, the Parties agree that upon Equant’s failure to deliver a
full and complete Reconciliation Report in accordance with the provisions
of clause 18.4(a) for any invoiced period within the period commencing
from the Effective Date and terminating six (6) calendar months
thereafter:

	 	(i)	 	subject to clause 18.4(b)(iii) below, such Reconciliation
Report shall be considered complete and accurate for the purposes of
this clause 18;
	 
	 	(ii)	 	Equant shall deliver a full and complete Reconciliation
Report in respect of each invoiced period to SITA SC and/or SITA
INC, as appropriate, as soon as reasonably practicable and in any
event within six (6) months from the Effective Date; and

	 	 	 
	

	Services Agreement	76	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	SITA SC and SITA INC shall hold the right to raise a dispute
in respect of the Reconciliation Report relating to each such
invoiced period for a period of twelve (12) months following the
date of receipt of each full and complete Reconciliation Report
pursuant to clause 18.4(b)(ii) by either SITA SC and/or SITA INC, as
appropriate.

	18.5.	 	Payment Due
	 
	(a)	 	Subject to clause 18.5(b) below, SITA SC and SITA INC shall pay in full
all invoices by the last day of the calendar month following the calendar
month in which the latest of the invoice, Billing Information, SITA
Mediation Files, Reconciliation Report or Detailed Billing Information
was received by SITA SC and/or SITA INC, as applicable (the “Due Date”).
	 
	(b)	 	In the event that SITA SC and/or SITA INC believes that a bona fide
dispute exists in respect of any amount specified under any invoice
rendered by Equant (the “Disputed Amount”) and/or in respect of any
information set out under the Billing Information, SITA Mediation Files or
Reconciliation Report or Detailed Billing Information (“the Disputed
Information”), then:

	 	(i)	 	SITA SC and/or SITA INC shall promptly notify Equant in
writing of the Disputed Amount and/or Disputed Information;
	 
	 	(ii)	 	within fifteen (15) days following receipt of the SITA SC
and/or SITA INC notice pursuant to clause 18.5(b)(i), Equant shall
provide written advice (by reference to the SITA Mediation Files or
other Network data) that either justifies the Disputed Amount and/or
Disputed Information or corrects the Disputed Amount and/or Disputed
Information;
	 
	 	(iii)	 	within fifteen (15) days after the receipt of such Equant
written advice, SITA SC and/or SITA INC, as appropriate, shall
notify Equant in writing in respect of SITA SC’s and/or SITA INC’s,
agreement and acceptance of the written advice provided to SITA SC
and/or SITA INC by Equant pursuant to clause 18.5(b)(ii);
	 
	 	(iv)	 	following either:

	 	(A)	 	failure on the part of Equant to provide
written notice pursuant to clause 18.5(b)(ii) justifying the
Disputed Amount and/or Disputed Information within fifteen
(15) days (or other period of time as the relevant Parties
may agree in writing); or

	 	(B)	 	delivery of written notification by either SITA
SC and/or SITA INC to Equant of non-acceptance of Equant’s
justification pursuant to clause 18.5(b)(ii),

	 	then SITA SC and/or SITA INC may withhold payment of any remaining
Disputed Amount (regardless of whether such amounts may have been

	 	 	 
	

	Services Agreement	77	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	previously paid) and either of the relevant Parties may initiate
dispute resolution procedures in accordance with clause 29; and

	 	(v)	 	subject to:

	 	(A)	 	the provision of written notification by SITA
SC and/or SITA INC to Equant pursuant to clause 18.5(b)(iii)
confirming agreement with Equant’s written advice provided to
SITA SC and/or SITA INC pursuant to clause 18.5(b)(ii); and

	 	(B)	 	the provisions of clause 18.5(b)(iv),

	 	 	 	if the written advice provided by Equant to SITA SC and/or
SITA INC corrects or amends the Disputed Amount, such
correction shall be reflected either:

	 	I)	 	on the invoice for the invoiced
period during which the date on which such written
advice is received by SITA SC and/or SITA INC and the
amount payable by SITA SC and/or SITA INC in respect of
such correction (if any) shall become due and payable
as if such amount had initially been rendered on that
invoice; or

	 	II)	 	on a credit note issued by Equant
to SITA SC and/or SITA INC, as appropriate, prior to
the date on which the invoice for the invoiced period
during which the written advice is received by SITA SC
and/or SITA INC.

	(c)	 	SITA SC and/or SITA INC, as appropriate, shall hold the right to raise a
dispute in respect of any invoice, Billing Information, SITA Mediation
File, Reconciliation Report or Detailed Billing Information, within twelve
(12) calendar months following the date of receipt by SITA SC and/or SITA
INC, as appropriate, of such invoice, Billing Information, SITA Mediation
File, Reconciliation Report or Detailed Billing Information. If after
such twelve (12) month period SITA SC and/or SITA INC, as appropriate, has
not provided written notice in accordance with clause 18.5(b)(i), such
invoice, Billing Information, SITA Mediation File, Reconciliation Report
or Detailed Billing Information shall be deemed correct.
	 
	18.6.	 	Pass Through Expenses
	 
	(a)	 	Tail Circuits

	 	(i)	 	Equant shall invoice SITA SC and/or SITA INC, as applicable, for an amount
equal to [*] of the amount (net of any discounts)
invoiced by Equant to SITA SC and/or SITA INC, as applicable, with
respect to any Tail Circuits procured and managed by Equant on
behalf of SITA SC and/or SITA INC on a calendar month basis in
arrears (the “Monthly Management Fee”) in accordance with the
provisions of this clause 18.

	 	 	 
	

	Services Agreement	78	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ii)	 	In addition to the Management Fee, SITA SC and/or SITA INC
may agree to contribute to any development costs incurred by Equant
with respect to Tail Circuit Service Levels provided that such
development costs are incurred by Equant for the sole purpose of
satisfying requirements specific to SITA SC and/or SITA INC. Such
requirements shall be functionalities that both (A) provide
non-standard services based on services in the market and (B) will
not be made available, either in whole or in part, to any other
customers of Equant or distributors directly but may be used for
Equant’s internal use. Such developments will be subject to the
formal financial approval of SITA SC and/or SITA INC and will be
recovered through a monthly development contribution fee
[*] (the
“Monthly Development Contribution Fee”). Operating costs and
expenses associated with these developments (other than
depreciation) will not give rise to a specific charge but will be
covered by the Management Fee.
	 
	 	(iii)	 	In the event that the total of the Monthly Management Fees
together with the Monthly Development Contribution Fee paid or
payable by SITA SC and SITA INC with respect to a Contract Year are
less [*] (the “Minimum Management Fee”), then SITA SC and/or SITA INC, as
applicable, shall promptly pay Equant the difference between [*] and the total
Monthly Management Fees for such Contract Year following the
completion of such Contract Year.
	 
	 	(iv)	 	If the developments result in cost savings that allow Equant
to provide Tail Circuits to SITA SC, SITA INC and the SITA Group
Companies for less than the Minimum Management Fee during a Contract
Year, then Equant shall provide such savings to SITA SC and/or SITA
INC. SITA SC and SITA INC shall have the right to audit and review
such developments and related costs to determine whether such
savings should be provided to them by Equant.
	 
	 	(v)	 	Equant shall invoice SITA SC and/or SITA INC, as applicable,
for an amount equal to [*] for Tail
Circuits during the preceding quarter. Such advance shall be
rounded to the nearest [*] and shall be adjusted quarterly. The Parties shall review each year
the amount of the advance as a percentage of the average monthly
charge for Tail Circuits and reasonably agree adjustments, if any,
required to maintain cash flow neutrality for each of the Parties.
	 
	 	(vi)	 	All payments made by SITA SC and SITA INC to Equant shall be
in US Dollars. Any required conversions shall be shown on the
applicable invoice and will be based on a rate as at the last day of
the month prior to the month of the invoice, such rate to be agreed
between the Parties concerned.

	(b)	 	Other Pass Through Expenses

	 	 	 
	

	Services Agreement	79	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	Unless otherwise agreed by the Parties (acting in their sole
and absolute discretion), all Pass-Through Expenses other than Tail
Circuits shall be invoiced directly to SITA SC, SITA INC, or the
SITA Group Company concerned, as appropriate, on a calendar month
basis in arrears and based on invoices received by Equant from the
third party provider of the Pass Through Expenses.
	 
	 	(ii)	 	The Parties shall periodically review the level of all Pass
Through Expenses other than Tail Circuits. If any such Pass Through
Expenses reach a material level over a Contract Year, the Parties
shall reasonably agree a mechanism (including a management fee and
some level of payment in advance) that achieves cash flow neutrality
for each of the Parties.

	18.7.	 	Interest
	 
	(a)	 	Amounts not paid by Equant, SITA SC or SITA INC by the Due Date that are
not subject to a bona fide dispute shall accrue interest at the rate of
one per cent (1%) above the U. S. Dollar three (3) month London Interbank
Offer Rate (LIBOR) appearing on the Reuters Screen LIBOR 01 Page as of
11.00 a.m., London Time, and which shall be determined on the Effective
Date and thereafter at the last day of each calendar year.
	 
	(b)	 	Interest on Disputed Amounts that are not paid by Equant, SITA SC or SITA
INC by the Due Date or on amounts that are found to be owing by Equant to
SITA SC and/or SITA INC pursuant to procedures set out under either clause
18.5(b) or clause 29 shall apply as follows:

	 	(i)	 	amounts that are determined by the dispute resolution process
not to be owed by the Party raising the dispute shall not accrue
interest for any period whatsoever; and
	 
	 	(ii)	 	amounts that are determined by the dispute resolution process
to be owed by the Party raising the dispute shall accrue interest at
the rate specified in clause 18.7(a) that is applicable to the
calendar year in which the Due Date fell, with effect from and
including the Due Date until but not including the date of actual
receipt of payment.

	18.8.	 	Right of Set-Off
	 
	(a)	 	Following service of five Business Days’ written notice, SITA SC and/or
SITA INC, as appropriate, shall be entitled to exercise the right to
set-off any amount payable by Equant to SITA SC and/or SITA INC, as
appropriate, under this Agreement, or the Transition and Management
Agreement from any amount due to Equant from SITA SC or SITA INC, as
appropriate, under this Agreement or the Transition and Management
Agreement.
	 
	(b)	 	Following service of five Business Days’ written notice, Equant shall be
entitled to exercise the right to set-off any amount payable by SITA SC
and/or SITA INC, as appropriate, under this Agreement or the Transition
and Management Agreement from

	 	 	 
	

	Services Agreement	80	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	any amount due to SITA SC and/or SITA INC, as appropriate, under this
Agreement or the Transition and Management Agreement.
	 
	(c)	 	Except as otherwise agreed, no Party shall be entitled to exercise the
right to set-off any amount alleged to be payable by one Party (the
“Invoiced Party”) to another Party (the ‘Invoicing Party’) in respect of
any amount due to the Invoiced Party from the Invoicing Party under any
contract between such Parties other than under this Agreement, the
Strategic Relationship Umbrella Agreement or the Transition and Management
Agreement.
	 
	(d)	 	Following service of five Business Days’ written notice, Equant and SITA
SC and/or SITA INC shall be entitled to exercise the right to set-off an
amount equivalent to a maximum of three (3) months Service Charges against
any amounts that form the subject of the Dispute Resolution Procedures as
a result of any right, power or remedy provided by law or under this
Agreement, the Strategic Umbrella Relationship Agreement or the Transition
and Management Agreement.
	 
	(e)	 	This clause 18.8 is intended to give rights in contract only and is not
intended to constitute, create or give rise to any security interest or
charge of any kind over any asset of any Party. If and to the extent that
any right conferred under this clause would, notwithstanding the foregoing
sentence, constitute, create or give rise to any security interest or
charge, such right shall be of no effect.
	 
	19.	 	SITA SC AND SITA INC RESPONSIBILITIES
	 
	19.1.	 	SITA SC Representative and SITA INC Representative
	 
	(a)	 	SITA SC shall designate one individual to whom all Equant’s
communications concerning this Agreement may be addressed (the ‘SITA SC
Representative’). The SITA SC Representative shall:

	 	(i)	 	hold overall managerial responsibility for SITA SC’s duties
and obligations under this Agreement and (within SITA SC’s generally
applicable corporate governance directives in respect of the
management level approval required to make certain financial
commitments) SITA SC shall grant to the SITA SC Representative full
authority and power to make decisions with respect to actions to be
taken by SITA SC in the ordinary course of day-to-day management of
this Agreement;
	 
	 	(ii)	 	act as SITA SC’s primary liaison with Equant’s Project
Executive;
	 
	 	(iii)	 	be granted direct access to SITA SC’s key decision makers;
and
	 
	 	(iv)	 	be provided by SITA SC with all of the experience, expertise
and resources of SITA SC required in order fully to execute and
perform the role, responsibilities and duties of the SITA SC
Representative.

	 	 	 
	

	Services Agreement	81	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(b)	 	SITA INC shall designate one individual to whom all Equant’s
communications concerning this Agreement may be addressed (the ‘SITA INC
Representative’). The SITA INC Representative shall:

	 	(i)	 	hold overall managerial responsibility for SITA INC’s duties
and obligations under this Agreement and (within SITA INC’s
generally applicable corporate governance directives in respect of
the management level approval required to make certain financial
commitments) SITA INC shall grant to the SITA INC Representative
full authority and power to make decisions with respect to actions
to be taken by SITA INC in the ordinary course of day-to-day
management of this Agreement;
	 
	 	(ii)	 	act as SITA INC’s primary liaison with Equant’s Project
Executive;
	 
	 	(iii)	 	be granted direct access to SITA INC’s key decision makers;
and
	 
	 	(iv)	 	be provided by SITA INC with all of the experience, expertise
and resources of SITA INC required fully to execute and perform the
role, responsibilities and duties of the SITA INC Representative.

	19.2.	 	Co-operation; Specific Obligations
	 
	(a)	 	SITA SC and SITA INC shall cooperate with Equant by:

	 	(i)	 	making available, as reasonably requested by Equant,
management decisions, business information, approvals and
acceptances of SITA SC and/or SITA INC (as applicable) so that
Equant may accomplish its obligations and responsibilities under
this Agreement; and
	 
	 	(ii)	 	providing to the Equant Project Executive reasonable access
to SITA SC’s and SITA INC’s senior managerial and technical
personnel, engineers, designers and equivalent personnel and to SITA
SC’s network management records and information.

	(b)	 	SITA SC and/or SITA INC, as appropriate, will:

	 	(i)	 	provide reasonable documentation and assistance to Equant to
assist Equant in providing the Network Services in each Country;
	 
	 	(ii)	 	not knowingly itself use the Network for any unlawful
purposes, and shall in its customer contracts executed or renewed
six (6) months or more after the Effective Date impose a similar
obligation on its customers;
	 
	 	(iii)	 	not knowingly itself introduce a virus onto the Network, and
shall in its customer contracts executed or renewed six (6) months
or more after the Effective Date impose a similar obligation on its
customers;

	 	 	 
	

	Services Agreement	82	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iv)	 	not knowingly itself publish, transmit, distribute or
download any illegal, pornographic, defamatory, obscene or indecent
material on the Network, and shall in its customer contracts
executed or renewed six (6) months or more after the Effective Date
impose a similar obligation on its customers;
	 
	 	(v)	 	not itself obtain or attempt to obtain access to unauthorised
parts of the Network, and shall in its customer contracts executed
or renewed six (6) months or more after the Effective Date impose a similar
obligation on its customers; and
	 
	 	(vi)	 	allow Equant reasonable access to any SITA SC, SITA Group
Company or SITA INC facilities as may be necessary for Equant to
perform the Services.

	19.3.	 	Failure to Perform
	 
	(a)	 	In the event that Equant is unable to perform any of its obligations
under this Agreement, including failure to meet Service Levels, as a
result of any breach of SITA SC or SITA INC, as applicable, to perform
their respective obligations under this Agreement, Equant shall only be
entitled to rely upon such SITA SC or SITA INC breach as relieving Equant
from performance of any of its obligations:

	 	(i)	 	if Equant shall have notified SITA SC and/or SITA INC
promptly in writing after such SITA SC or SITA INC breach came to
Equant’s attention, such notice setting out in reasonable detail the
nature of such breach; and
	 
	 	(ii)	 	to the extent that such breach by SITA SC and/or SITA INC, as
applicable, precludes, delays, or restricts performance by Equant of
its obligations under this Agreement.

	(b)	 	To the extent that Equant incurs additional costs in performing its
obligations under this Agreement which are caused by SITA SC’s or SITA
INC’s failure to perform its responsibilities, SITA SC and/or SITA INC, as
appropriate, shall reimburse such costs.
	 
	(c)	 	To the extent that SITA SC and/or SITA INC incur additional costs in
performing their obligations under this Agreement which are caused by
Equant’s failure to perform its responsibilities, Equant shall reimburse
such costs.
	 
	20.	 	EQUANT RESPONSIBILITIES
	 
	20.1.	 	Other Equant Obligations to SITA SC and/or SITA INC
	 
	(a)	 	Equant shall provide SITA SC and SITA INC with the Reports in the format
and at the frequency specified in Schedule G (‘Reports’) and read-only
access to the same database that Equant uses with respect to Network
topography and points of presence.
	 
	(b)	 	Equant shall provide all necessary operational and financial
Network-related information required by SITA SC or SITA INC in respect of
their respective businesses. Equant and SITA SC and/or SITA INC shall
reasonably agree the nature of this information, but will always be
subject to Equant’s obligations, based on the advice of legal counsel,
under

	 	 	 
	

	Services Agreement	83	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	applicable corporate and securities Laws as a listed company with respect
to non-public information; provided that Equant shall take all actions to
the extent permitted under such Laws to release to SITA SC (and/or to
SITA INC, as applicable) as much of such information as possible.
	 
	(c)	 	Equant shall make available appropriate senior network managers
designated by Equant to attend and support, when reasonable and necessary,
SITA SC’s operational review meetings, and meetings of its board of
directors and any subcommittees thereof. Equant shall take such follow up
actions agreed by Equant and SITA SC resulting from these meetings. SITA
SC shall provide written notice pursuant to clause 30.2 of such meetings
at least seven (7) days in advance of such meetings. Attendance of Equant
personnel at such meetings shall normally be in person unless SITA SC
consents to an alternative method (eg, videoconference) of participation;
provided, however, that SITA SC shall not unreasonably withhold, condition
or delay such consent. If SITA SC requires the physical presence of any
individual at a location on a continent other than the continent where
such individual is normally based, then the Parties shall pay the travel
expenses of such individual as follows:

	 	(i)	 	Equant shall bear the travel expenses for up to a total of
twelve (12) such intercontinental trips for such individuals during
each calendar year; and
	 
	 	(ii)	 	SITA SC shall reimburse (or arrange for the direct payment
of) the travel expenses of all intercontinental trips for such
individuals in excess of twelve (12) during each calendar year.
SITA SC shall reimburse such travel expenses in accordance with
Equant’s then-current corporate travel policy.

	(d)	 	Equant shall provide resources in order to support SITA SC’s and SITA
INC’s internal network needs as well as its standard and specific customer
requirements, including specific products (subject to clause 4),
geographic coverage (subject to clause 5.1, clause 5.2 and clause 5.3),
outsourced networks, customised solutions and access to specialist
functions (eg, product management and development, product marketing,
engineering, and customer support activities). Reimbursement of the cost
for (if any), or payment of Service Charges relating to (if any), such
resources shall be as set out in the Price Books.
	 
	20.2.	 	Equant Project Executive

Equant shall designate one individual to whom all SITA SC’s and SITA INC’s
communications concerning this Agreement may be addressed (the ‘Equant Project
Executive’), without prejudice to the SITA Group Companies’ access to the
dedicated strategic partnership unit, and additional communications channels
and ad hoc contacts between the Parties at an operational level pursuant to
clause 6 of the Strategic Relationship Umbrella Agreement. The Equant Project
Executive shall:

	(a)	 	hold overall managerial responsibility for Equant’s duties and
obligations under this Agreement and (within Equant’s generally applicable
corporate governance directives in respect of the management level
approval required to make certain financial commitments) Equant shall
grant to the Equant Project Executive full authority and

	 	 	 
	

	Services Agreement	84	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	power to make decisions with respect to actions to be taken by Equant in
the ordinary course of day-to-day management of this Agreement;
	 
	(b)	 	act as Equant’s primary liaison with the SITA SC Representative and with
the SITA INC Representative;
	 
	(c)	 	be granted direct access to Equant’s key decision makers; and
	 
	(d)	 	be provided by Equant with all the experience, expertise and resources of
Equant required in order fully to execute and perform the role,
responsibilities and duties of the Equant Project Executive.
	 
	20.3.	 	Co-operation

Equant shall co-operate with SITA SC and SITA INC by:

	(a)	 	making available, as reasonably requested by SITA SC and/or SITA INC,
management decisions, business information, approvals and acceptances to
assist SITA SC and/or SITA INC to accomplish its obligations and
responsibilities under this Agreement; and
	 
	(b)	 	providing the SITA SC Representative and SITA INC Representative
reasonable access to Equant’s senior management and technical personnel,
engineers, designers and equivalent personnel and to Equant’s Network
management records and information.
	 
	21.	 	AUDITS AND RECORD KEEPING
	 
	21.1.	 	SITA SC and SITA INC Audit Rights
	 
	(a)	 	SITA SC and SITA INC shall have the right to perform a multi-Country
audit of Equant no more frequently than once every twelve (12) months
during the Term. SITA SC and SITA INC may conduct such audits only for
the following purposes:

	 	(i)	 	to audit and inspect the use of any equipment or Software
licensed or leased to SITA SC or SITA INC by a third party and used
by or on behalf of Equant;
	 
	 	(ii)	 	to verify that the Services are being provided in accordance
with the Service Levels;
	 
	 	(iii)	 	to verify the validity of the Service Charges and
Pass-Through Expenses;
	 
	 	(iv)	 	to audit the validity and accuracy of the cost calculations
supporting the establishment of prices for Standard Cost Services;
	 
	 	(v)	 	to audit Recognisable Costs and Recognisable Cost Payments
and to audit Equant’s growth forecasts for all other sales channels
in respect of each situation or area in respect of which any
Recognisable Cost could be incurred.

	 	 	 
	

	Services Agreement	85	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(b)	 	In addition, SITA SC and SITA INC may perform one audit in each Country,
and one audit at the central level, no more frequently than once every
three (3) months during the Term, but with no more than fifteen (15) such
audits during any consecutive three (3) month period. SITA SC and SITA
INC may conduct such audits only for the purpose of verifying the validity
of Pass Through Expenses (including those related to tail circuits).
	 
	(c)	 	In performing such audits, SITA SC and SITA INC must appoint Audit
Representatives to conduct such audits. SITA SC and SITA INC must obtain
from its Audit Representatives (both from the relevant accounting firm and
from the individuals actually performing such audits) a non-disclosure
agreement imposing the confidentiality obligations imposed on SITA SC and
SITA INC by clause 22 hereof in a form reasonably acceptable to Equant.
Such Audit Representatives must undertake such audits in a manner that
imposes the minimum disruption possible on Equant’s business, including by
(a) conducting such audits during normal business hours on Equant’s
premises, and (b) if SITA INC is Controlled by the SITA INC Foundation,
SITA SC and SITA INC conducting such audits at the same time. SITA SC and
SITA INC must give Equant reasonable prior written notice of such audits
(which shall normally be no less than thirty (30) days, unless otherwise
agreed in writing).
	 
	21.2.	 	Equant Audit Rights

Equant shall have the right to perform audits of SITA SC and SITA INC no more
frequently than once every twelve (12) months during the Term. Equant may
conduct audits only (a) to verify the financial ratios set out in clause 7 in
respect of SITA INC usage of Network Services provided by a provider other than
Equant and (b) to verify that any Exception Priced Services negotiated by Equant and
SITA SC and/or SITA INC is being applied only to the relevant
customer. In performing such audits, Equant must appoint Audit
Representatives to conduct such audits. Equant must obtain from its Audit
Representatives (both from the relevant accounting firm and from the
individuals actually performing such audits) a non-disclosure agreement
imposing the confidentiality obligations imposed on Equant by clause 22 hereof
in a form reasonably acceptable to SITA SC and SITA INC. Such Audit
Representatives must undertake such audits in a manner that imposes the minimum
disruption possible on SITA SC’s and/or SITA INC’s business, as applicable,
including by conducting such audits during normal business hours on SITA SC’s
and SITA INC’s premises. Equant must give SITA SC and/or SITA INC, as
applicable, reasonable prior written notice of such audits (which shall
normally be no less than thirty (30) days, unless otherwise agreed in writing).

	21.3.	 	Cooperation with Audit Representatives
	 
	(a)	 	Each Party will give the other Party’s Audit Representatives such access
to its facilities and records as is reasonably necessary to perform audits
in accordance with this clause 21 at all reasonable times and on
reasonable notice.
	 
	(b)	 	Each Party will co-operate with the Audit Representatives of the other
Party by giving reasonable access, at its own expense, to its management
and accounting personnel during normal business hours for such Audit
representatives efficiently to conduct their

	 	 	 
	

	Services Agreement	86	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	duties, including explanation of the relevant Party’s records systems and business procedures.
	 
	21.4.	 	Costs

Each Party conducting an audit will pay the professional fees, Pass-Through
Expenses, direct cost reimbursements and other disbursements involved in
retaining its own Audit Representatives. Each Party conducting an audit, or
being audited, will bear its own internal costs that are incurred in
conjunction with such an audit.

	22.	 	CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS
	 
	22.1.	 	Confidentiality of Agreement

Except as provided in clause 22.5, no Party shall disclose to any third Party, this Agreement, the Strategic Relationship
Umbrella Agreement, the Transition and Management Agreement or the Account
Management Agreement, or any of the terms and conditions or other provisions
contained in any of them (including any schedules or other attachments to any
of them) except:

	(a)	 	with the prior written consent of all of the other Parties;
	 
	(b)	 	only as required by applicable Law and then only to the extent required
by such Law; or
	 
	(c)	 	pursuant to procedures specified in this Agreement.
	 
	22.2.	 	Public Announcements

Except as provided under clause 22.5, no Party shall make any public
announcement with respect to this Agreement, the Strategic Relationship
Umbrella Agreement, the Transition and Management Agreement, or the Account
Management Agreement, or the strategic relationship of the Parties without the
prior Consent of all of the other Parties, provided that either Party (or, in
the case of SITA SC, a SITA Group Company) may name the other as a customer or
supplier, as applicable, and disclose the general nature of the overall
arrangement between the Parties under such agreements. A “public announcement”
under this clause 22.2 does not include internal communications within Equant
(including Network Staff) and SITA SC (or the applicable SITA Group Company) and/or SITA INC.

	22.3.	 	Protection of Confidential Information

Except as provided under clause 22.5, each Party shall, and shall cause its
Affiliates and its and its Affiliates’ respective directors, officers,
employees, contractors, consultants, advisors and agents to:

	 	 	 
	

	Services Agreement	87	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(a)	 	keep confidential all Confidential Information given by one Party (the
‘Disclosing Party’) to another Party (the ‘Recipient’) or otherwise
obtained pursuant to this Agreement by the Recipient, using at least the
same level of care that the Recipient uses or affords to its own
Confidential Information but in no event less than a reasonable degree of
care, including maintaining reasonable security practices against any
unauthorised copying, use, disclosure, access, damage or destruction of
the Confidential Information;
	 
	(b)	 	not (except as expressly permitted) disclose any of the Confidential
Information, make copies of material containing the Confidential
Information or otherwise use the Confidential Information except as
permitted under clause 22.4;
	 
	(c)	 	safeguard the Confidential Information and comply with any requirements
specified by the Disclosing Party from time to time;
	 
	(d)	 	promptly notify the Disclosing Party if the Recipient reasonably
believes or knows of any unauthorised access, copying, use or disclosure
in any form or if the Recipient is required by Law to disclose any of the
Disclosing Party’s Confidential Information;
	 
	(e)	 	take all reasonable steps to enforce any obligation of confidence imposed
or required to be imposed by this Agreement; and
	 
	(f)	 	give all reasonable assistance (including, if necessary, the execution of
appropriate documents to assist the Disclosing Party to pursue any legal
actions) reasonably required by the Disclosing Party to enforce any
obligation of confidence imposed or required to be imposed by this
Agreement.
	 
	22.4.	 	Use of Confidential Information
	 
	(a)	 	Except to the extent expressly provided otherwise in this Agreement and
Schedule W of this Agreement, the Recipient may only use and copy the
Disclosing Party’s Confidential Information to the extent necessary:

	 	(i)	 	to comply with its obligations under this Agreement;
	 
	 	(ii)	 	to enable the Recipient to exercise its rights under this
Agreement, including obtaining any intended benefits under this
Agreement; or
	 
	 	(iii)	 	to enable the Recipient to comply with any applicable Law.

	(b)	 	Except to the extent expressly provided otherwise in this Agreement and
Schedule W of this Agreement, the Recipient shall limit distribution of
the Disclosing Party’s Confidential Information solely on a need to know
basis to (1) individuals within its organisation (including only its
employees, directors and officers, and in the case of Equant, Network
Staff who are bound by nondisclosure agreements pursuant to the Transition
and Management Agreement) and (2) the Recipient’s professional advisors,

	 	 	 
	

	Services Agreement	88	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	contractors, Affiliates or business partners who are bound by
obligations of confidentiality covering the Disclosing Party’s
Confidential Information disclosed to them that are no less
protective than the terms and conditions of this clause 22.
	 
	22.5.	 	Exceptions to Obligations of Confidentiality

The burden of proving the existence of an exception to the confidentiality
obligations set out in this clause 22.5 shall always be on the Party seeking to
avail itself of such exception, including in dispute resolution or court
proceedings brought by the Disclosing Party, including where arbitration or
court procedural rules would otherwise impose the burden of proof on the
Disclosing Party. Nothing in this Agreement prohibits the use or disclosure by
the Recipient of any particular Confidential Information of the Disclosing
Party by a Party to the extent that:

	(a)	 	the information has become generally available public knowledge other
than due to a violation of this Agreement;
	 
	(b)	 	based on the written advice of such Party’s legal counsel, the disclosure
is expressly required by Law, but in the event of any such proposed
disclosure, such Party required to make such disclosure shall give the
Disclosing Party reasonable advance written notice of the disclosure,
including specifying the Confidential Information to be disclosed, the
content of such disclosure (as it relates to such Confidential Information) and the circumstances
necessitating such disclosure. The Recipient will reasonably cooperate
with the Disclosing Party in order to minimise the amount of Confidential
Information disclosed under this clause 22.5 and, if requested by the
Disclosing Party, the Recipient will seek measures protecting such
disclosure and protecting against further disclosure or any misuse or
misappropriation of such Confidential Information;
	 
	(c)	 	the information has been independently developed by the Party without
reference to the Confidential Information of the Disclosing Party;
	 
	(d)	 	the information has been lawfully obtained by the Party from a third
party source under no obligation of confidentiality to the Disclosing
Party, provided that such third party source itself lawfully obtained the
Confidential Information; or
	 
	(e)	 	the Disclosing Party has approved in writing the particular use or
disclosure of the Confidential Information.
	 
	22.6.	 	Equitable Relief

The Parties acknowledge that the Disclosing Party will be entitled to
equitable relief or appropriate court order(s) against the Recipient (in
addition to any other rights available under this Agreement or at Law) from any
court of competent jurisdiction for any breach or threatened breach by the
Recipient of its obligations under this clause 22.

	22.7.	 	Period of Confidentiality

Each Party’s obligations with respect to Confidential Information disclosed
under this Agreement will survive for five (5) years after the date of expiry
or termination of this Agreement.

	 	 	 
	

	Services Agreement	89	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	23.	 	INTELLECTUAL PROPERTY RIGHTS

Intellectual Property Rights between the Parties are set out in Schedule W
(‘Intellectual Property Rights’).

	24.	 	WARRANTIES
	 
	24.1.	 	Representations and Warranties by Equant

Equant represents and warrants at all relevant times that:

	(a)	 	Equant will perform the Services in a professional and diligent manner,
in accordance with generally accepted industry standards;
	 
	(b)	 	Equant will commit sufficient resources and suitably qualified, trained
and experienced personnel to the performance of this Agreement;
	 
	(c)	 	Equant will perform its obligations under this Agreement with promptness
and diligence;
	 
	(d)	 	Equant’s signing, delivery and performance of this Agreement will not:

	 	(i)	 	violate any relevant judgement, order or decree; or
	 
	 	(ii)	 	violate, breach, constitute a default under, or result in the
termination, cancellation or acceleration (whether after the giving
of notice, lapse of time, or both) of, any material contract (A) by
which Equant is bound or (B) under which a charge, pledge or lien is
created over any of the assets (whether tangible or intangible)
owned by Equant;

	(e)	 	Equant has the requisite power and authority to enter into this Agreement
and to carry out its obligations as contemplated by this Agreement;
	 
	(f)	 	Equant shall use commercially reasonable efforts to perform its
obligations under this Agreement in compliance with all applicable Laws,
enactments, orders, regulations and other similar instruments; and
	 
	(g)	 	Equant shall not permit, allow or cause any encumbrance to be created or
arise over (i) any assets primarily used in connection with the provision
of the Services to the SITA Group Companies or their customers, other than
loans or financings entered into in the ordinary course of Equant’s
business; (ii) assets funded by SITA SC pursuant to clause 5.3, or (iii) any
Intellectual Property Rights owned or leased by SITA SC or any SITA Group
Company, or licensed to Equant pursuant to this Agreement.
	 
	24.2.	 	Representations and Warranties by SITA SC

SITA SC represents and warrants at all relevant times that:

	 	 	 
	

	Services Agreement	90	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(a)	 	Those SITA SC personnel working in connection with this Agreement will be
suitably qualified, trained and experienced for the performance of SITA
SC’s obligations under this Agreement;
	 
	(b)	 	SITA SC will perform its obligations under this Agreement with promptness
and diligence;
	 
	(c)	 	SITA SC’s signing, delivery and performance of this Agreement will not:

	 	(i)	 	violate any relevant judgement, order or decree; or
	 
	 	(ii)	 	violate, breach, constitute a default under, or result in the
termination, cancellation or acceleration (whether after the giving
of notice, lapse of time, or both) of, any material contract (A) by
which SITA SC is bound or (B) under which a charge, pledge or lien
is created over any of the assets (whether tangible or intangible)
owned by SITA SC;

	(d)	 	SITA SC has the requisite power and authority to enter into this
Agreement and to carry out its obligations as contemplated by this
Agreement; and
	 
	(e)	 	SITA SC shall use commercially reasonable efforts to perform its
obligations under this Agreement in compliance with all applicable Laws,
enactments, orders, regulations and other similar instruments.
	 
	24.3.	 	Representations and Warranties by SITA INC

SITA INC represents and warrants that at all relevant times:

	(a)	 	those SITA INC personnel working in connection with this Agreement will
be suitably qualified, trained and experienced for the performance of SITA
INC’s obligations under this Agreement;
	 
	(b)	 	SITA INC will perform its obligations under this Agreement with
promptness and diligence;
	 
	(c)	 	SITA INC’s signing, delivery and performance of this Agreement will not:

	 	(i)	 	violate any relevant judgement, order or decree; or
	 
	 	(ii)	 	violate, breach, constitute a default under, or result in the
termination, cancellation or acceleration (whether after the giving
of notice, lapse of time, or both) of, any material contract (A) by
which SITA INC is bound or (B) under which a charge, pledge or lien
is created over any of the assets (whether tangible or intangible)
owned by SITA INC;

	 	 	 
	

	Services Agreement	91	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(d)	 	SITA INC has the requisite power and authority to enter into this
Agreement and to carry out its obligations as contemplated by this
Agreement; and
	 
	(e)	 	SITA INC shall use commercially reasonable efforts to perform its
obligations under this Agreement in compliance with all applicable Laws,
enactments, orders, regulations and other similar instruments.
	 
	24.4.	 	No Additional Representations and Warranties

Except as otherwise provided for in this Agreement, there are no express or
implied warranties, representations, undertakings, or conditions (statutory or
otherwise) given by Equant or SITA SC or SITA INC, including the implied
warranties of satisfactory performance and fitness for a particular purpose.
Nothing in this clause 24.4 shall purport to limit any Party’s liability for
fraudulent misrepresentation.

	25.	 	INDEMNITIES
	 
	25.1.	 	Indemnity by Equant

Equant shall indemnify, defend and hold harmless SITA SC, the SITA Group
Companies and SITA INC and officers, directors, employees, consultants,
contractors, agents, successors and assigns of each of them, from any and all
Losses arising from, or in connection with, any of the following:

	(a)	 	 
	 
	(b)	 	any wilful or deliberate serious and significant breach of Equant; and
	 
	(c)	 	except for Claims for which this Agreement provides that SITA SC and/or
SITA INC (as applicable) is to indemnify Equant, any Claim made by a third
party (including by a third party (including a customer of Equant) against
SITA SC and/or SITA INC (as applicable) arising out of the marketing,
offering, provision or delivery (as applicable) by Equant of the Network
Services. To the extent that the Claim brought by such third party is
determined to arise out of any breach or other actionable cause by SITA SC
and/or SITA INC against Equant under this Agreement, nothing in this
clause 25.1(c) shall preclude Equant from directly seeking damages from
SITA SC and/or SITA INC (as applicable) in such regard subject to the
terms and conditions of this Agreement.
	 
	25.2.	 	Indemnity by SITA SC

SITA SC shall indemnify, defend and hold harmless Equant and its officers,
directors, employees, consultants, contractors, agents, successors and assigns,
from any and all Losses arising from, or in connection with, any of the
following:

	 	 	 
	

	Services Agreement	92	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(a)	 	 
	 
	(b)	 	any wilful or deliberate serious and significant breach by SITA SC; and
	 
	(c)	 	except for Claims for which this Agreement provides that Equant is to
indemnify SITA SC, any Claim made by a third party (including a customer
of SITA SC or any SITA Group Company, as applicable) against Equant
arising out of the marketing, offering, provision or delivery (as
applicable) by SITA SC and/or any SITA Group Company (as applicable) of
the Network Services. To the extent that the Claim brought by such third
party is determined to arise out of any breach or other actionable cause
by Equant against SITA SC under this Agreement, nothing in this clause
25.2(c) shall preclude SITA SC from directly seeking damages from Equant
in such regard subject to the terms and conditions of this Agreement.
	 
	25.3.	 	Indemnity by SITA INC

SITA INC shall indemnify, defend and hold harmless Equant and its officers,
directors, employees, consultants, contractors, agents, successors, and
assigns, from any and all Losses arising from, or in connection with any of the
following:

	(a)	 	any wilful or deliberate serious and significant breach by SITA INC; and
	 
	(b)	 	except for Claims for which this Agreement provides that Equant is to
indemnify SITA INC, any Claim made by a third party (including a customer
of SITA INC) against Equant by a third party (including the customers of
SITA INC) arising out of the marketing, offering, provision or delivery
(as applicable) by SITA INC of the Network Services. To the extent that
the Claim brought by such third party is determined to arise out of any
breach or other actionable cause by SITA INC against Equant under this
Agreement, nothing in this clause 25.3(b) shall preclude SITA INC from
directly seeking damages from Equant in such regard subject to the terms
and conditions of this Agreement.
	 

	 	 	 
	

	Services Agreement	93	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	25.4.	 	Indemnification Procedures

Where this Agreement provides that a Party (the ‘Indemnitor’) is to indemnify,
defend or hold harmless (as applicable) the other Party (or, in the case of
SITA SC, the applicable SITA Group Company) (the ‘Indemnitee’) against a Claim
(other than with respect to a Claim that involves Taxes or a Claim initiated by
a Party hereto), the procedures set forth below shall apply. A failure of the
Indemnitee to follow such procedures shall not affect the Indemnitor’s
obligations under this Agreement; provided that the Indemnitor will be excused
from its obligations under this clause 25.4 to the extent that the Indemnitee’s
failure materially prejudices the Indemnitor’s ability to defend or settle the
Claim.

	(a)	 	The Indemnitee shall notify the Indemnitor in writing and in reasonable
detail of a Claim promptly following receipt by the Indemnitee of notice
of such Claim. The Indemnitor will reimburse the Indemnitee for the
reasonable fees and expenses of the Indemnitee’s counsel for the period
between the Indemnitee’s receipt of notice of the Claim until the time, if
any, that the Indemnitor assumes control of the defence of such Claim
pursuant to clause 25.4(c). As far as reasonably practicable, the
Indemnitee will also give the Indemnitor prompt notice of any event which
it reasonably believes is likely to give rise to a Claim which the
Indemnitor would be obligated to indemnify under this Agreement
	 
	(b)	 	The Indemnitee shall deliver to the Indemnitor promptly following the
Indemnitee’s receipt thereof copies of all notices received by the
Indemnitee relating to such Claim.
	 
	(c)	 	If the Indemnitor notifies the Indemnitee within a reasonable time that
the Indemnitor is assuming the defence of the Claim at the Indemnitor’s
expense, the Indemnitee agrees that (i) the Indemnitor will have the
exclusive right to defend, investigate, litigate, compromise and settle
the Claim (including the selection of attorneys); (ii) the Indemnitor may
make any settlement or compromise of any Claim that only involves the
payment of money without any requirement to seek Consent from the
Indemnitee. The Indemnitor shall make no settlement or compromise of a
Claim that could directly or indirectly adversely impact the Indemnitee in
any way (including by way of example an admission of liability or a
promise of future conduct or of the avoidance of certain conduct), without
the Indemnitee’s prior Consent.
	 
	(d)	 	If the Indemnitor assumes the defence of the Claim under clause 25.4(c),
the Indemnitee shall, at the request of the Indemnitor, provide the
Indemnitor with all reasonable assistance and co-operation for the purpose
of contesting any Claim brought against the Indemnitee. The Indemnitor
shall promptly reimburse the Indemnitee for the Indemnitee’s reasonable
costs of providing such assistance and co-operation.
	 
	(e)	 	If the Indemnitor does not assume the defence of a Claim under clause
25.4(c) within a reasonable time after the Indemnitee has notified the
Indemnitor of a Claim under clause 25.4(c), the Indemnitor shall have the
right to defend, investigate, litigate, compromise or settle such Claim on
behalf of, and for the account of, the Indemnitor if it sends a further
written notice to Indemnitor’s General Counsel that it intends to do so
and the Indemnitor

	 	 	 
	

	Services Agreement	94	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	does not notify the Indemnitee that the Indemnitor is assuming the defence of
the Claim under clause 25.4(c) within ten (10) days. Except where the
Indemnitee retains the defence of the Claim under the preceding sentence,
the Indemnitee shall not make any admission with respect to, or agree to
settle or compromise, any Claim or take any other action which may be
prejudicial to the defence or settlement of any Claim, without the
Indemnitor’s prior Consent after disclosure to the Indemnitor of the
relevant circumstances.
	 
	26.	 	LIABILITY AND LIMITATION OF LIABILITY
	 
	26.1.	 	Damages

A breaching Party shall be liable to a non-breaching Party only for any direct
loss incurred by the non-breaching Party as a result of the breaching Party’s
failure to perform its obligations in accordance with this Agreement. For the
avoidance of doubt, neither Party shall be liable for indirect or consequential
loss or damage. Direct loss shall not include any of the following:

	(a)	 	loss of profits, loss of over recovery, loss of business, loss of
revenues, loss of goodwill or loss of or failure to make any anticipated
savings;
	 
	(b)	 	any losses arising in connection with any claims or other demands brought
against a non-breaching Party by any third party pursuant to any
commitment to such third party by or on behalf of the non-breaching Party
and arising out of any breach of this Agreement; and/or
	 
	(c)	 	indirect or consequential loss or damage.
	 
	26.2.	 	Limitations of Liability
	 
	(a)	 	The Parties do not exclude or limit liability for:

	 	(i)	 	death or personal injury caused by negligence of a Party, or
its employees or sub-contractors;
	 
	 	(ii)	 	real and tangible property claims caused by the negligence of
a Party or its employees or sub-contractors;

	 	 	 
	

	Services Agreement	95	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	any Claim for which a Party must indemnify another Party
pursuant to clause 25 of this Agreement;
	 
	 	(iv)	 	any Party’s failure to claim any invoiced amount validly
owing to another Party for its performance under this Agreement
(including amounts owed for Services rendered, and not including
claims of damages or other liabilities relating owing or alleged to
be owing due to a breach of this Agreement);
	 
	 	(v)	 	fraudulent misrepresentation;
	 
	 	(vi)	 	any breach of any obligations implied by Section 12 of the
Sale of Goods Act 1979 (to the extent not inconsistent with an
express warranty set out in this Agreement) or Section 20 of the
Supply of Goods and Services Act 1982;
	 
	 	(vii)	 	any Claim relating to infringement of Intellectual Property
Rights;
	 
	 	(viii)	 	any Claim relating to breach of a Party’s confidentiality
obligations as set out in clause 22 of this Agreement;
	 
	 	(ix)	 	to the extent a limitation is not permitted by Law; or
	 
	 	(x)	 	wilful or deliberate serious and significant breach.

	(b)	 	Subject to clause 26.2, the maximum liability of any Party for all Claims
arising under or in connection with this Agreement, regardless of the form
of action (whether in contract, tort or otherwise), shall in no event
exceed, in the aggregate, the total Service Charges (not including Pass
Through Expenses or other amounts reimbursed on a cost basis) payable by
the SITA Group Companies pursuant to this Agreement in respect of the
twelve (12) months immediately preceding the date on which the last Claim
arises (or, if a claim arises within the initial twelve (12) months after
the Effective Date, the total Service Charges payable by the SITA Group
Companies to Equant pursuant to this Agreement in respect of such initial
twelve (12) months following the Effective Date), reduced by any other
damages previously paid by such Party to the other Party under or in
connection with this Agreement.
	 
	(c)	 	On and after the date that SITA INC is no longer Controlled by the SITA
INC Foundation, the maximum liability of SITA INC or of any other Party in
respect of SITA INC for all Claims arising under or in connection with
this Agreement, regardless of the form of action (whether in contract,
tort or otherwise), shall in no event exceed, in the aggregate, the total
Service Charges (not including Pass Through Expenses or other amounts
reimbursed on a cost basis) payable by SITA INC pursuant to this Agreement
in respect of the twelve (12) months immediately preceding the date on
which the last Claim arises (or, if a Claim arises within the initial
twelve (12) months after the date that the SITA INC Foundation transferred
Control of SITA INC, the total Service Charges payable by the SITA INC to
Equant pursuant to this Agreement in respect of such initial twelve (12)
months following the date on which the SITA INC Foundation transferred
Control of SITA INC), reduced by any other damages previously paid by such
Party to the other Party under or in connection with this Agreement.

	 	 	 
	

	Services Agreement	96	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(d)	 	If any Service Credits are paid in respect of any Service Level Default,
any damages payable for a direct loss under this clause 26 shall be
reduced by the amount of such Service Credits paid.
	 
	26.3.	 	Duty to Mitigate

Each Party shall have a duty to mitigate damages for which another Party is or
may be responsible.

	27.	 	TERMINATION
	 
	27.1.	 	Termination for Cause by SITA SC and/or SITA INC
	 
	(a)	 	SITA SC and/or SITA INC may at any time by notice in writing delivered
pursuant to clause 30.2 terminate this Agreement from the effective date
of such notice pursuant to clause 30.3 if Equant is in material breach of
this Agreement in respect of SITA SC and/or SITA INC, respectively, (it
being understood that a material breach shall include any repeated failure
of Equant to fulfil any obligations under this Agreement, which taken
together is material) and:

	 	(i)	 	if such breach is capable of remedy, Equant has failed to
remedy such breach within sixty (60) days from the effective date
pursuant to clause 30.3 of a written notice delivered to Equant
pursuant to clause 30.2 specifying the breach and requiring its
remedy; or
	 
	 	(ii)	 	the breach is not capable of remedy.

	(b)	 	If circumstances arise which entitle SITA SC and/or SITA INC to terminate
this Agreement pursuant to clause 27.1(a), SITA SC and/or SITA INC (as the
case may be) may at its option by delivering written notice to Equant
pursuant to clause 30.2 reduce the scope of both or either of:

	 	(i)	 	the Services to be supplied; and/or
	 
	 	(ii)	 	the Countries in which the Services are to be supplied;

hereunder by termination of all or any part of such of the Services and/or the
Countries in which the Services are to be supplied as are affected directly or
indirectly by Equant’s material breach. To the extent they are applicable, the
Parties shall comply with relevant provisions of clause 27.9 in respect of the
terminated Services.

	(c)	 	If SITA SC and/or SITA INC exercise their right set out under clause
27.1(b) and the Service Charges in respect of those Services and Countries
would otherwise have contributed to the payment of the Minimum Revenue
Commitment, the Minimum Revenue Commitment shall be reduced by the sum
equal to the Service Charges that would have been payable had SITA SC or
SITA INC not exercised their rights set out under clause 27.1(b).

	 	 	 
	

	Services Agreement	97	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	27.2.	 	Termination for Cause by Equant

Equant may by written notice delivered pursuant to clause 30.2 terminate this
Agreement with respect to either SITA SC and/or SITA INC if such Party is in
material breach of this Agreement (the ‘Defaulting SITA Party’) as from a date
twelve (12) months after the effective date of such notice pursuant to clause
30.3 (it being understood that a material breach shall include any repeated
failure of such Defaulting SITA Party to fulfill any obligations under this
Agreement, which taken together is material) and;

	(a)	 	if such breach is capable of remedy, the Defaulting SITA Party has failed
to remedy such breach within sixty (60) days from the effective date
pursuant to clause 30.3 of a written notice delivered to the Defaulting
SITA Party pursuant to clause 30.2 specifying the breach and requiring its
remedy;
	 
	(b)	 	the breach is not capable of remedy; or
	 
	(c)	 	if the Defaulting SITA Party has failed to pay any sums that:

	 	(i)	 	are alleged to be due and payable by either SITA SC and/or
SITA INC;
	 
	 	(ii)	 	have been invoiced in accordance with the provisions of
clause 18;
	 
	 	(iii)	 	are neither Disputed Amounts nor sums connected with
Disputed Information; and
	 
	 	(iv)	 	in aggregate equals or exceeds the total Service Charges
payable by such Defaulting SITA Party in respect of the three (3)
most recent Billing Periods immediately preceding the date of
Equant’s termination notice

within sixty (60) days following the effective date of a written notice
delivered pursuant to clause 30 identifying the amount(s) and invoice(s)
corresponding to such allegedly unpaid sum(s).

	27.3.	 	Termination for Insolvency
	 
	(a)	 	Without prejudice to any other rights or remedies it may have, a Party
may, by giving written notice to the other, terminate its participation in
this Agreement (as of a date specified in the notice of termination) if an
Insolvency Event has occurred in respect of another Party. An ‘Insolvency
Event’ means such Party being unable to pay its debts as they fall due or
the taking of any steps by such Party or any other person relating to any
of the following:

	 	(i)	 	the presentation of a petition for winding up of such Party,
petition in bankruptcy or similar proceeding seeking its
reorganisation liquidation, which petition is not dismissed within
twenty eight (28) days;
	 
	 	(ii)	 	such other Party being the subject of an order, or an
effective resolution is passed for winding up the company;

	 	 	 
	

	Services Agreement	98	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(iii)	 	the application for an order or application for the
appointment of a receiver (including an administrative receiver),
administrator, trustee, liquidator or similar officer in respect of
such other Party, which application is not dismissed within
twenty-eight (28) days;
	 
	 	(iv)	 	an execution creditor, encumbrance, receiver (including an
administrative receiver) or other similar officer taking possessions
of the whole or any substantial part of such other Party’s property
or assets;
	 
	 	(v)	 	such other Party making a composition with its creditors
generally or making a general assignment for the benefit of its
creditors;
	 
	 	(vi)	 	the filing of a voluntary petition in bankruptcy or similar
proceeding seeking liquidation or the filing of a written admission
of its inability to pays its debts as they become due;
	 
	 	(vii)	 	filing a petition or answer seeking reorganisation or an
arrangement with creditors or taking advantage of any bankruptcy or
insolvency law;
	 
	 	(viii)	 	such other Party goes into liquidation ; and
	 
	 	 	 	such termination to take effect upon notice in writing to the other Party.

	27.4.	 	Termination for Change of Control
	 
	(a)	 	If Equant is the Affected Party, after following the procedures set out
in clause 8.4(a)(i) and clause 8.4(b) of the Strategic Relationship
Umbrella Agreement, then SITA SC may, not later than thirty (30) days
after the date that such Change of Control occurs or such longer period as
it takes to complete the escalation procedures set out in clause 8.4(b) of
the Strategic Relationship Umbrella Agreement, deliver a written notice to
France Telecom and Equant pursuant to clause 30.2 terminating this
Agreement as of a date no earlier than twelve (12) months after the
effective date of such notice pursuant to clause 30.3.
	 
	(b)	 	If SITA SC is the Affected Party, after following the procedures set out
in clause 8.4(a)(ii) and clause 8.4(b) of the Strategic Relationship
Umbrella Agreement, and if France Telecom exercises its rights under
clause 9.1(b) of the Strategic Relationship Umbrella Agreement, then Equant
shall, not later than thirty (30) days after the date that on which France
Telecom exercises such rights, deliver a written notice to SITA SC
pursuant to clause 30.2 terminating this Agreement and/or the Strategic
Relationship Umbrella Agreement as of a date no earlier than twelve (12)
months after the effective date of such notice pursuant to clause 30.3.
	 
	27.5.	 	Termination for Force Majeure
	 
	(a)	 	SITA SC or SITA INC may, if a delay or non-performance of all or part of
the Services due to a Force Majeure Event continues for more than ninety
(90) days, at its option:

	 	 	 
	

	Services Agreement	99	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	terminate the provision of those Services which are delayed
or not being performed due to the Force Majeure Event, in whole or
in part, with immediate effect upon a written notice delivered to
Equant pursuant to clause 30.2; or
	 
	 	(ii)	 	source substitute Services to replace the Services which are
delayed or not being performed due to the Force Majeure Event from a
provider other than Equant (or one of its Affiliates) designated by
SITA SC or SITA INC, as applicable, as the replacement supplier (the
‘Replacement Supplier’). The Parties will comply with clause 27.9
(to the extent applicable) with respect to the transfer and
assumption of the provision of such Services by the Replacement
Supplier.

	(b)	 	Notwithstanding any other provision of this Agreement, a Party which
exercises its rights under this clause 27.5 shall not be liable to Equant
for such action.
	 
	(c)	 	Notwithstanding any other provision of this Agreement, Equant shall not
be entitled to receive Service Charges or any other payment in respect of
Services that are delayed or not performed due to a Force Majeure Event if
such Services are not performed in accordance with the terms of this
Agreement. Any fixed charges in the Service Charges shall be adjusted
pro-rata to reflect the Services that are delayed or not performed due to
the Force Majeure Event.
	 
	(d)	 	If SITA SC or SITA INC agrees to accept Services that have been degraded
due to a Force Majeure Event, then the Parties shall negotiate the Service
Charges applicable to such degraded Services.
	 
	(e)	 	If the Force Majeure Event causes delay or non-performance of Services
and the Service Charges in respect of those Services would otherwise have
contributed to the payment of the Minimum Revenue Commitment, the Minimum
Revenue Commitment shall be reduced by the sum equal to the Service
Charges that would have been payable had the Force Majeure Event not
occurred.
	 
	27.6.	 	Accrued Rights

Termination of this Agreement will not affect any accrued rights of either Party.

	27.7.	 	Effect of Termination by a Party
	 
	(a)	 	At any time during which SITA INC is Controlled by the SITA INC
Foundation, a termination of this Agreement by SITA SC, SITA INC, or
Equant will act as a termination of this Agreement as a whole in respect
of all Parties.
	 
	(b)	 	If SITA INC is no longer Controlled by the SITA INC Foundation:

	 	(i)	 	a termination of this Agreement by SITA SC and/or Equant in
respect of each other will not act as a termination of this
Agreement in respect of SITA INC and Equant in respect of each
other, unless either SITA INC or Equant has also terminated this
Agreement in respect of each other; and

	 	 	 
	

	Services Agreement	100	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(ii)	 	a termination of this Agreement by SITA INC and/or Equant in
respect of each other will not act as a termination of this
Agreement in respect of SITA SC and Equant in respect of each other,
unless either SITA SC or Equant has also terminated this Agreement
in respect of each other.

	(c)	 	In the event (a) either SITA SC and/or Equant delivers a notice of
termination to the other Party pursuant to clause 27, and (b) if the
notice of termination is pursuant to clause 27.1 or clause 27.2, the Party
in breach has not remedied such breach within the timeframe required by
clause 27.1(a)(i), clause 27.2(a) or clause 27.2(c) or such breach is not
capable of remedy, then (A) in all cases other than clause 27.2, promptly
after delivery of such notice of termination, Equant and SITA SC shall
negotiate in good faith appropriate amendment to the commercial
arrangements related to each Party’s provision of services under the
Transition and Management Agreement; it being understood that such
amendments to the Transition and Management Agreement will become
effective on the effective date of termination unless otherwise agreed by
the Parties; and (B) in the case of clause 27.2, then from the third
anniversary after the date of delivery of such notice of termination,
Equant and SITA SC shall negotiate in good faith appropriate amendments to
each Party’s provision of services under the Transition and Management
Agreement; it being understood that such amendments to the Transition and
Management Agreement shall become effective on the fourth anniversary of
the effective date of delivery of such notice of termination. The Party
receiving such services under the Transition and Management Agreement is
under no obligation to either continue receiving such services or to
continue receiving such services to the same extent as prior to the
delivery of such termination notice.
	 
	27.8.	 	Cross-Defaults
	 
	(a)	 	At any time during which SITA INC is Controlled by the SITA INC
Foundation:

	 	(i)	 	a material breach of this Agreement by Equant in respect of
either SITA SC or SITA INC will constitute a material breach of this
Agreement in respect of both SITA SC and SITA INC; and
	 
	 	(ii)	 	a material breach of this Agreement by either SITA SC or by
SITA INC will constitute a material breach of this Agreement by both
SITA SC and SITA INC.

	(b)	 	At any time during which SITA INC is no longer Controlled by the SITA INC
Foundation, a material breach of this Agreement by Equant:

	 	(i)	 	in respect of SITA SC will not constitute a material breach
of this Agreement in respect of SITA INC; and
	 
	 	(ii)	 	in respect of SITA INC will not constitute a material breach
of this Agreement in respect of SITA SC,

unless the breach by Equant is also a material breach of this Agreement by
Equant in respect of SITA INC in the case of clause 27.8(b)(i), and in respect
of SITA SC in the case of clause 27.8(b)(ii).

	 	 	 
	

	Services Agreement	101	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(c)	 	Subject to clause 27.8(d), at any time during which SITA INC is no longer
Controlled by the SITA INC Foundation:

	 	(i)	 	a material breach of this Agreement by SITA SC in respect of
Equant will not constitute a material breach of this Agreement by
SITA INC; and
	 
	 	(ii)	 	a material breach of this Agreement by SITA INC in respect of
Equant will not constitute a material breach of this Agreement by
SITA SC.

	(d)	 	A breach of the financial ratio obligations set out in clause 7.3 shall
give rise to an option in Equant to terminate this Agreement in respect of
both SITA SC and SITA INC as provided in clause 7.3(f).
	 
	(e)	 	If Equant or SITA SC terminates this Agreement pursuant to:

	 	(i)	 	clause 27.3 (‘Termination for Insolvency’);
	 
	 	(ii)	 	clause 27.4 (‘Termination for Change of Control’); or
	 
	 	(iii)	 	clause 27.1 (‘Termination for Cause by SITA SC and SITA
INC’) with respect to SITA SC, or clause 27.2 (‘Termination for
Cause by Equant’) with respect to Equant, as a result of a material
breach of a material term which remains unremedied after delivery of
written notice to the breaching Party, provided that the full
dispute resolution procedures set out in clause 8.1 and clause 8.2
of the Strategic Relationship Umbrella Agreement are completed,

then the non-breaching Party shall have the right, at its option, to terminate
this Agreement and if it terminates this Agreement, such Party shall have the
right, at its option, to terminate the Strategic Relationship Umbrella
Agreement and to commence renegotiations of the Transition and Management
Agreement Agreement as contemplated by clause 27.7(c) of this Agreement.

	(f)	 	There are no cross-defaults except those explicitly stated in clause 27.8
of this Agreement or clause 9.2 of the Strategic Relationship Umbrella
Agreement. Except as stated above, the Parties acknowledge that neither
this Agreement, the Strategic Relationship Umbrella Agreement nor the Transition and Management
Agreement should be read or interpreted, either separately or together, as
implying any cross-defaults.
	 
	27.9.	 	Co-operation Upon Expiry or Termination
	 
	(a)	 	Upon the expiry or termination of this Agreement (in whole or in part),
Equant shall use commercially reasonable efforts and co-operate to
facilitate the orderly and efficient transfer to and assumption of the
Services by a Replacement Supplier for a period not to exceed six (6)
months (the ‘Termination Period’) such that the Services can be performed
with a minimum of interruption and inconvenience to SITA SC or SITA INC,
as applicable, provided that SITA SC and/or SITA INC, as appropriate has
paid all amounts then due to Equant under this Agreement (other than
amounts that are subject to a bona fide dispute and in respect of which
SITA SC and/or SITA INC has provided written notice of such dispute
pursuant to clause 18.5 hereof or has initiated the informal or

	 	 	 
	

	Services Agreement	102	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	formal dispute resolution procedure pursuant to clause 29). SITA SC
and/or SITA INC shall pay the Service Charges listed in the Price Books in
respect of Equant’s activities in providing such co-operation as follows:

	 	(i)	 	if Equant’s activity in providing such co-operation is
included in the Services, then SITA SC and/or SITA INC shall pay
only for Equant’s incremental activity (above the quantity of such
activities that is normally provided in respect of the Services);
provided, however, if SITA SC and/or SITA INC terminated this
Agreement due to a material breach by Equant, SITA SC and/or SITA
INC shall only be required to make payment for such termination
co-operation after determination through the dispute resolution
procedure of what amounts, if any, are payable by SITA SC and/or
SITA INC, in respect of such termination co-operation; and
	 
	 	(ii)	 	if the reason for termination of this Agreement is SITA SC’s
or SITA INC’s failure to pay Service Charges when due, Equant shall
have the right to demand payment in advance rather than in arrears
for its activity in providing such co-operation and for any
continuing Services required by SITA SC and/or SITA INC.

	(b)	 	If SITA SC or SITA INC, as applicable, has paid any Service Charges in
advance (other than as provided in clause 27.9(a)(ii)), then Equant shall
repay such Service Charges paid in advance (other than in respect of any
Services or reimbursement for termination co-operation (or part thereof)
properly performed in accordance with this Agreement), but SITA SC and/or
SITA INC, as applicable, may set off such advance payments as provided in
clause 18.8.
	 
	(c)	 	If SITA SC or SITA INC, as applicable, has advanced any funding for
development and/or production of any SITA Specific Product/Service that
have not yet been completed, then:

	 	(i)	 	Equant will provide a written notice to SITA SC and/or SITA
INC, as applicable, advising whether Equant is able to complete such
SITA Specific Product/Service before the end of the period during
which termination co-operation is expected to be provided;
	 
	 	(ii)	 	SITA SC and/or SITA INC will provide a written notice to
Equant directing it either to complete development and/or production
of such SITA Specific Product/Service or to discontinue development
thereof;
	 
	 	(iii)	 	if SITA SC and/or SITA INC directs Equant to complete
development and/or production of such SITA Specific Product/Service,
then Equant shall do so in accordance with clause 4.3;
	 
	 	(iv)	 	if SITA SC and/or SITA INC directs Equant to discontinue
development and/or production of such SITA Specific Product/Service,
then Equant shall promptly (a) provide to SITA SC and/or SITA INC
such materials as relates to such SITA Specific Products/Services in
whatever state of development they are in as at that

	 	 	 
	

	Services Agreement	103	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 	date; (b) return all unexpended funding that SITA SC and/or SITA
INC had provided in respect of the development and/or production
of such SITA Specific Product/Service; and (c) provide evidence
that Equant prudently spent such development funds; and
	 
	 	(v)	 	if SITA SC and/or SITA INC, as applicable, considers that
Equant had not prudently spent such development funds, then it may
initiate the dispute resolution procedure pursuant to clause 29 to
recover any such development funds that Equant did not prudently
expend.

	(d)	 	If SITA SC and/or SITA INC, as applicable, has advanced any funding for
expansion or modification to the Network (including the acquisition of
Network assets) that has not yet been completed, then:

	 	(i)	 	Equant will provide a written notice to SITA SC and/or SITA
INC, as applicable, advising whether Equant can complete such
expansion or modification before the end of the period during which
termination co-operation is expected to be provided;
	 
	 	(ii)	 	SITA SC and/or SITA INC will provide a written notice to
Equant directing Equant either to complete such expansion or
modification and, if applicable, integrate or interconnect such
expansion or modification into the third party network as requested
by SITA SC and/or SITA INC (as permitted by the third party
concerned), or to discontinue such activity;
	 
	 	(iii)	 	if SITA SC and/or SITA INC directs Equant to discontinue
activities pursuant to clause 27.9(d)(ii), then Equant shall
promptly (a) deliver to SITA SC and/or SITA INC at a location
designated by SITA SC and/or SITA INC in the Country in which such
expansion or modification was to be located (or to such other
location as the relevant Parties may agree) all equipment, assets
and Software that it had acquired to support such expansion or
modification; (b) provide to SITA SC and/or SITA INC all relevant
plans and drawings that Equant had prepared in respect of such
expansion or modification; (c) return all unexpended funding that
SITA SC and/or SITA INC had provided in respect of expansion or
modification; and (d) provide evidence that Equant prudently spent
such funds; and
	 
	 	(iv)	 	if SITA SC and/or SITA INC, as applicable, considers that
Equant had not prudently spent such funds, then it may initiate the
dispute resolution procedure pursuant to clause 29 to recover any
such funds that Equant did not prudently expend.

	(e)	 	SITA SC or SITA INC, as applicable, shall have the option to purchase at
net book value any equipment owned by Equant and which is used exclusively
by Equant for the purpose of providing the Services to the SITA Group
Companies, SITA INC or their respective customers.

	 	 	 
	

	Services Agreement	104	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(f)	 	If requested by SITA SC and/or SITA INC, Equant shall use commercially
reasonable efforts to procure the assignment or novation in favour of SITA
SC or SITA INC, as applicable, or a Replacement Supplier (if designated by
SITA SC or SITA INC, as applicable):

	 	(i)	 	equipment leases relating to any equipment which is used
exclusively by Equant for the purpose of providing the Services to
the SITA Group Companies, SITA INC or their respective customers;
and
	 
	 	(ii)	 	maintenance agreements, support agreements or other
arrangements between Equant and third parties which relate to
equipment or services which is used exclusively by Equant for the
purpose of providing the Services to the SITA Group Companies, SITA
INC, or their respective customers;

	 	 	SITA SC, SITA INC, or the Replacement Supplier shall be responsible for
the cost of any required consents or assignment or novation fees in
respect of such assignments or novations. Equant will use commercially
reasonable efforts to minimise the occurrence of such required consent,
assignment or novation fees and the amount of such fees should they be
unavoidable.
	 
	(g)	 	If requested by SITA SC and/or SITA INC, Equant shall use commercially
reasonable efforts to procure the assignment or novation in favour of SITA
SC or SITA INC, as applicable, or a Replacement Supplier (if designated by
SITA SC or SITA INC, as applicable), of any license or maintenance
agreement relating to Third Party Software that relates to equipment or
services which is used exclusively by Equant for providing the Services to
the SITA Group Companies, SITA INC, and their respective customers. SITA
SC, SITA INC, or the Replacement Supplier shall be responsible for the
cost of any required consents or assignment or novation fees in respect of
such assignments or novations. Equant will use commercially reasonable
efforts to minimise the occurrence of such required consent, assignment or
novation fees and the amount of such fees should they be unavoidable.
	 
	(h)	 	Each Party in receipt of Confidential Information from another Party
shall comply with the directions of the owner of such Confidential
Information in respect of the return thereof, the destruction thereof, or
the transfer thereof to a third party. Each Party shall warrant in
writing that no copies of such Confidential Information owned by another
Party have been retained.
	 
	28.	 	FORCE MAJEURE
	 
	28.1.	 	Neither Party Liable

Neither SITA SC nor SITA INC nor Equant will be liable for any default or delay
in performance of its obligations under this Agreement if, and to the extent,
the default or delay is caused, directly or indirectly, by a Force Majeure
Event.

	 	 	 
	

	Services Agreement	105	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	28.2.	 	Period of Delay

When a Force Majeure Event has occurred, the non-performing Party will be
excused from further performance of the obligations affected for as long as the
circumstances prevail and the non-performing Party continues to use all
commercially reasonable endeavours to recommence performance whenever and to
whatever extent possible without delay. Any non-performing Party will promptly
notify the Party to whom performance is due and describe at a reasonable level
of detail the circumstances causing such delay and the expected duration
thereof. The non-performing Party will ensure that the affected Party is
treated equally with any third parties (including the non-performing Party’s
Affiliates) in respect of similar services that are provided during a Force
Majeure Event.

	29.	 	DISPUTE RESOLUTION
	 
	29.1.	 	Dispute Resolution Procedure

Any dispute between the Parties arising out of or relating to this Agreement,
including with respect to the interpretation of any provision of this Agreement
and with respect to the performance by either Party shall be resolved using the
dispute resolution procedures specified in the Strategic Relationship Umbrella
Agreement, which are hereby incorporated by reference into this Agreement.

	29.2.	 	Continued Performance

SITA SC and Equant shall continue to perform their respective obligations under
this Agreement pending the resolution of a dispute, including a dispute in
respect of a Party’s right to terminate this Agreement, provided that nothing
in this clause prevents or restricts a Party from lawfully exercising any of
its rights pursuant to clause 27 at any time.

	30.	 	GENERAL
	 
	30.1.	 	Governing Law

The construction, performance, validity and remedies for breach of this
Agreement shall be governed by English law.

	30.2.	 	Notices

A Party notifying or giving notice under this Agreement will give notice:

	(a)	 	in writing and in the English language;
	 
	(b)	 	by (i) hand delivery to or sent by prepaid first class post, (ii) air
courier delivery service to that address, or (iii) electronic mail or
facsimile (only if confirmed by telephone); and
	 
	(c)	 	addressed to all other Parties to the attention of the designated
person(s) set out below or as altered by notice given in accordance with
this clause:

	 	 	 
	

	Services Agreement	106	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	 	 
	For SITA SC:	 	
Secretary General

Société Internationale de Télécommunications Aéronautiques S.C.

26, Chemin de Joinville

P.O. Box 31

1216 Cointrin – Geneva

Switzerland
	 
	 	 	
Copy to:

General Counsel

26, Chemin de Joinville

P.O. Box 31

1216 Cointrin – Geneva

Switzerland
	 
	For SITA INC:	 	
Corporate Secretary

SITA Information Networking Computing N.V.

Heathrow Staat 10

1043 CH Amersterdam

The Netherlands
	 
	 	 	
Copy to:

General Counsel

SITA Information Networking Computing N.V.

26, Chemin de Joinville

P.O. Box 31

1216 Cointrin – Geneva

Switzerland
	 
	For Equant:	 	
Vice President and General Manager SITA Account

Equant N.V.

400 Galleria Parkway, S.E.

Atlanta GA 30339-5980

United States of America
	 
	 	 	
Copy to:

General Counsel

Equant N.V.

12490 Sunrise Valley Drive

Reston VA 20196

United States of America

	 	 	 
	

	Services Agreement	107	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(d)	 	Unless SITA INC is no longer Controlled by the SITA INC Foundation,
Equant must provide any notice given by Equant to SITA INC to both SITA SC
and to SITA INC at the same time as provided in clause 30.2(c).
	 
	30.3.	 	Service of Notice

A notice given in accordance with clause 30.2 is deemed received and is
effective:

	(a)	 	if hand delivered to another Party’s address, on the date of delivery;
	 
	(b)	 	if sent by prepaid first class post, five (5) Business Days after the
date of posting; or
	 
	(c)	 	if sent by courier delivery service, on the date of delivery.

Except for notices sent by facsimile, in each instance the Party delivering
such notice shall for the convenience of the Party or Parties to which such
notice is delivered also transmit such notice by facsimile; provided, however,
that the failure to do so shall not affect either the fact or the date and time
of delivery of such notice.

	30.4.	 	Relationship of Parties
	 
	(a)	 	Nothing in this Agreement or any circumstances associated with it or its
performance shall give rise to any relationship of agency, partnership or
employer and employee between the Parties and another Party’s agents,
employees or sub-contractors.
	 
	(b)	 	Except as expressly provided in this Agreement, none of the Parties shall
have any authority to act or make representations on behalf of any of the
other Parties, nor to create contractual liability to a third party on
behalf of (or otherwise contractually bind) any of the other Parties.
	 
	30.5.	 	Waiver
	 
	(a)	 	If a Party has a right arising from another Party’s failure to comply
with an obligation under this Agreement, and delays in exercising or does
not exercise that right, then that delay in exercising or failure to
exercise is not a waiver of that right or any other right.
	 
	(b)	 	A waiver by a Party of a right in one instance does not constitute a
waiver of that right or any other right in any other instance, without
regard to the similarity of circumstances, unless the Party specifically
waives such right or other right in the second instance.
	 
	(c)	 	Any waiver of a right by a Party must be in writing in a notice
transmitted as provided in clause 30.2 executed by the Party making such
waiver.
	 
	30.6.	 	Entire Agreement and Variation
	 
	(a)	 	This Agreement, the Strategic Relationship Umbrella Agreement, the
Transition and Management Agreement and the Account Management Agreement
form the strategic relationship among the Parties and:

	 	 	 
	

	Services Agreement	108	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	 	(i)	 	constitute the entire agreement between the Parties as to the
strategic relationship and this transaction; and
	 
	 	(ii)	 	the foregoing agreements replace and supersede any prior
understanding or agreement between the Parties in respect of the
strategic relationship and this transaction and any prior draft,
statement, undertaking, agreement, understanding, condition,
warranty, indemnity or representation imposed, given or made by a
Party (including the JV Agreement and the HOA) prior to the
Effective Date (collectively, the ‘Pre-Contractual Statements’) and
no Party shall have any claim or right of action in respect of the
Pre-Contractual Statements except in respect of fraudulent
misrepresentation. For the avoidance of doubt, no Pre-Contractual
Statement may be used in the interpretation or construction of this
Agreement.

	(b)	 	This Agreement may only be amended in writing when signed by Parties
concerned with each particular amendment.
	 
	(c)	 	Nothing in this clause 30.6 purports to exclude any Party’s liability for
fraudulent misrepresentation.
	 
	30.7.	 	Priority of Documents

If there is any conflict between any of the express terms of this document or
the Schedules (other than Schedule T (Operations Manual Requirements)) and the
terms of Schedule T (Operations Manual Requirements), then the terms of this
document and/or the Schedules (other than Schedule T (Operations Manual
Requirements) shall prevail.

	30.8.	 	Use of Resources

Except in respect of SITA Specific Products/Services and expansions or
modifications to the Network funded by SITA SC and/or SITA INC, or as otherwise
expressly provided in this Agreement, nothing in this Agreement implies a right
in SITA SC and/or SITA INC for the exclusive use of the Network, Generic
Products/Services, personnel or other resources that Equant uses to provide the
Services to the SITA Group Companies, SITA INC or their respective customers.

	30.9.	 	Limitations Period

Unless applicable Law forbids contractual waiver or limitation, neither Equant,
nor SITA SC nor SITA INC may bring a legal action or initiate the dispute
resolution procedure under this Agreement:

	(a)	 	in the case of Claims arising directly between the Parties that are not
based upon a third-party Claim against a Party, more than two (2) years
after the cause of action came to the actual knowledge of the Party; or
	 
	(b)	 	in the case of a third-party Claim asserted against a Party, more than
two (2) years after the third-party concerned has successfully asserted
such Claim against the relevant Party.

	 	 	 
	

	Services Agreement	109	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	30.10.	 	Third Party Beneficiaries
	 
	(a)	 	Nothing in this Agreement, express or implied, is intended to confer upon
any person other than Equant, SITA SC, and SITA INC, or their respective
successors or permitted assignees any rights or remedies under or by
reason of this Agreement.
	 
	(b)	 	The Parties do not intend that any term of this Agreement should be
enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999
by any person who is not a Party to this Agreement.
	 
	30.11.	 	Assignment
	 
	(a)	 	A Party may not assign its rights or transfer its obligations under this
Agreement without the prior written consent of the other Party except
that:

	 	(i)	 	no consent is required in the case of assignment by a Party
to one of its majority owned subsidiaries;
	 
	 	(ii)	 	no consent is required for Equant to assign its rights and
transfer its obligations under this Agreement to the successor
entity of the merger of Equant and Global One.

	(b)	 	Following a Change of Control of Equant or SITA SC, as applicable, if the
relevant Party has (i) determined not to exercise its right to terminate
this Agreement pursuant to clause 27.4; or (ii) has not given notice of
termination of this Agreement within the period set out in clause 27.4,
the Affected Party may assign this Agreement to the entity acquiring all
or substantially all of the assets of the Affected Party (as described in
clause (a) of the definition ‘Change of Control’).
	 
	(c)	 	Any attempt by a Party to assign its rights or transfer its obligations
under this Agreement in violation of clause 30.11(a) or clause 30.11(b) is
null and void.
	 
	(d)	 	This right is without prejudice to either Party’s right to terminate the
Agreement in accordance with clause 27.
	 
	30.12.	 	Counterparts

This Agreement may be executed in several counterparts, each of which shall be
deemed an original and all of which taken together will constitute one single
agreement between the Parties.

	30.13.	 	Cumulative Rights

A right, power, remedy, entitlement or privilege given or granted to a Party
under this Agreement is cumulative with, without prejudice to and not exclusive
of any other right, power, remedy, entitlement or privilege granted or given
under this Agreement or by Law.

	 	 	 
	

	Services Agreement	110	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	30.14.	 	Reading Down

If a provision of this Agreement is reasonably capable of an interpretation
which would make that provision valid and enforceable and an alternative
interpretation that would make it unenforceable, illegal, invalid or void then,
so far as is possible, that provision will be interpreted or construed, taking
into account (i) the objectives, scope and purposes set out in clause 2 of the
Strategic Relationship Umbrella Agreement; and (ii) the fact that the
commercial intentions of this Agreement are based on symmetry and balance among
the Parties, to be limited and read down to the extent necessary to make it
valid and enforceable.

	30.15	 	Severability

If any provision is deemed invalid, illegal or unenforceable, then the
remainder of this Agreement shall stand; provided, however, that the Parties
shall negotiate in good faith to adjust the terms of this Agreement to ensure
that the Parties original commercial intentions are achieved as much as
reasonably possible. The commercial intentions of this Agreement are based on
symmetry and balance between the Parties.

	30.16.	 	Contra Proferentem

No rule of construction will apply in the interpretation of this Agreement to
the disadvantage of one Party on the basis that such Party put forward or
drafted this Agreement or any provision of this Agreement.

	30.17.	 	Costs

Each Party shall bear its own legal and other costs and expenses of, and
incidental to, the preparation, execution and completion of this Agreement and
of any related documentation.

	30.18.	 	Survival of Terms

The following terms will survive the termination or expiry of this Agreement:

	(a)	 	clause 22 (Confidentiality; Public Announcements);
	 
	(b)	 	clause 23 (Intellectual Property Rights);
	 
	(c)	 	clause 25 (Indemnities);
	 
	(d)	 	clause 26 (Liability);
	 
	(e)	 	clause 27.6 (Accrued Rights);
	 
	(f)	 	For so long as the Transition and Management Agreement is in effect,
clause 27.7(c) (Effect of Termination);
	 
	(g)	 	clause 29 (Dispute Resolution) and
	 
	(h)	 	clause 30.1 (Governing Law);

	 	 	 
	

	Services Agreement	111	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

	(i)	 	clause 30.5 (Waiver);
	 
	(j)	 	clause 30.10 (Third Party Beneficiaries);
	 
	(k)	 	clause 30.13 (Cumulative Rights);
	 
	(l)	 	clause 30.14 (Reading Down);
	 
	(m)	 	clause 30.15 (Severability);
	 
	(n)	 	clause 30.16 (Contra Proferentem); and
	 
	(o)	 	clause 30.18 (Survival of Terms).
	 
	(p)	 	Schedule Y (Class A Address Space Management).

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

 

 

 

 

	 	 	 
	

	Services Agreement	112	Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

EXECUTED by the Parties

	 	 	 	 	 	 	 
	SIGNED for and on behalf of	 	 	)	 	 	 
	Equant N.V	 	 	)	 	 	/s/ Matthew MacFarlane

	 	 	 	)	 	 	Signature of officer
	 
	 	 	 	)	 	 	Matthew MacFarlane

	 	 	 	)	 	 	Name of officer (print)
	 
	 	 	 	)	 	 	Vice President
Mergers & Acquisitions

	 	 	 	)	 	 	Office held
	 
	SIGNED for and on behalf of	 	 	)	 	 	 
	Société Internationale de
Télécommunications Aéronautiques S.C	 	 	)	 	 	/s/ John Oliver Watson

	 	 	 	)	 	 	Signature of officer
	 
	 	 	 	)	 	 	John Oliver Watson

	 	 	 	
)
	 	 	Name of officer (print)
	 
	 	 	 	)	 	 	Director General

	 	 	 	
)
	 	 	Office held
	 
	SIGNED for and on behalf of	 	 	)	 	 	 
	SITA Information Networking Computing N.V	 	 	)	 	 	/s/John Oliver Watson

	 	 	 	)	 	 	Signature of officer
	 
	 	 	 	)	 	 	John Oliver Watson

	 	 	 	
)
	 	 	Name of officer (print)
	 
	 	 	 	)	 	 	Managing Director

	 	 	 	
)
	 	 	Office held

	 	 	 
	

	Services Agreement		Dated: 30 November 2001
	Restated Version with Amendment No. 1 (Errata)	 

 

Commercial-in-Confidence

SCHEDULE A

GLOSSARY

[*]

‘Account Management Agreement’ means the Account Management Agreement executed by SITA SC, SITA INC and
France Telecom on 29 June 2001.

‘Achieved Activity’ has the meaning set forth in clause 16.1(a) of this Agreement.

‘Active Sales’ means active marketing approaches to end customers, including without
limitation direct mail, advertisements in the media directly targeted at the customer group in
question, marketing visits which have not been specifically requested by such customers and
the submission of unsolicited bids.

‘Adjustments to the Year 2000 Cost Share’ has the meaning set forth in clause 10.2 of this
Agreement.

‘Affected Party’ means a Party that has delivered notice of an actual or proposed Change of
Control of such Party.

‘Affiliate’ means in respect of any legal entity, any other legal entity that Controls, is
Controlled by or is under common Control with such legal entity.

‘Agreement’ means this Services Agreement including all of the Schedules, all attachments to
such Schedules, and all of the appendices to such Schedules, all as amended from time to time.

‘Air Transport Community’ has the meaning set forth in Schedule B (‘Definition of Air
Transport Community’) to the Strategic Relationship Umbrella Agreement.

‘Allowable Differential’ has the meaning set forth in clause 12.6(a) of this Agreement.

‘Allowable Differential Curves’ has the meaning set forth in clause 12.6(b) of this Agreement.

‘Annual Forecast Date’ has the meaning set forth in clause 15.1(b) of this Agreement.

‘Annual Network Activity Forecast’ means a forecast of connections, traffic and other Network
activity for the period of thirty-six (36) calendar months commencing from the first day of
the calendar month immediately following the Annual Forecast Date.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-1	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

[*]

‘Audit Representatives’ means an independent third-party accounting firm appointed by a Party
to audit another Party’s records or to inspect a Party’s owned or leased equipment that is
managed by another Party.

[*]

‘Benchmarking Agreement’ has the meaning set forth in clause 11.3(a) of this Agreement.

‘Benchmarking Certification Report’ has the meaning set forth in clause 11.5(a) of this Agreement.

[*]

‘Benchmarking Region’ has the meaning set forth in Schedule O (‘Benchmarking Regions’) to this
Agreement.

‘Benchmarking Report’ has the meaning set forth in clause 11.5(a) of this Agreement.

‘Benchmarking Survey’ has the meaning set forth in clause 11.1 of this Agreement.

‘Billing Entities’ and ‘Billed Entities’ has the meaning set forth in Schedule H (‘Billing
Entities, Billed Entities and Remitting Entities’) to this Agreement.

‘Billing Information’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Billing Period’ means the calendar month period in respect of which the Billing Entities are to deliver an invoice for
the Services rendered to SITA SC, SITA INC and the SITA Group Companies as applicable during
that calendar month.

‘Break Points’ has the meaning set forth in clause 12.6(b) of this Agreement.

‘Bundled Tail Circuits’ means Tail Circuits, Tie Lines or local access provided by Equant to
SITA SC, SITA INC and the SITA Group Companies on a bundled basis.

‘Business Days’ means Monday to Friday, excluding any public holidays, when banks are open for
business in New York, London, Amsterdam, Paris and Geneva.

[*]

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-2	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Change of Control’ shall with respect to a legal entity mean:

	(a)	 	the sale of other disposition by such legal entity of all, or substantially all, of the
assets of such legal entity; or
	 
	(b)	 	the sale or other disposition of more than 50% of the capital stock of such legal entity
(other than to an Affiliate, or a bona fide pledge in connection with a financing); or
	 
	(c)	 	a merger, consolidation or other business combination involving such legal entity, which
results in the stockholders, or certificate holders, as applicable, of such legal entity
and/or its Affiliates immediately prior to such event owning less than 50% of the capital
stock of the surviving entity.

‘Claim’ means any claim, demand, proceeding or other action.

‘Commitment Date’ has the meaning set forth in clause 16.1(c) of this Agreement.

‘Comparable Provider(s)’ has the
meaning set forth in clause 2.4(a) of Schedule M
(‘Instructions to the Independent Expert’);

‘Comparable Service(s)’ has the
meaning set forth in clause 2.3(b) of Schedule M (‘Instructions to the Independent Expert’);

[*]

‘Confidential Information’ means in relation to SITA SC, SITA INC, and Equant, and each of their respective Affiliates:

	(a)	 	information that relates to the financial position, business, budget, financial and
product or marketing strategies, forecasts or projections of such entity, customer information
and lists, pricing information, costs data, estimates, market surveys, source codes, the
internal management or structure of such entity, technology plans, technical studies or
designs, trade secrets and other trade information, database models or personnel;
	 
	(b)	 	information that is marked by such entity as confidential or if disclosed orally is
identified as confidential;
	 
	(c)	 	the Strategic Relationship Umbrella Agreement, this Agreement, the Transition and
Management Agreement and the Account Management Agreement, and the terms and conditions or other provisions contained in each of
them (including any schedules or other attachments thereto);
	 
	(d)	 	in the case of Equant, the Equant IPR; and
	 
	(e)	 	in the case of SITA SC and SITA INC, the SITA IPR.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-3	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Consent’ means any approval, acceptance or consent by a Party that is required under this
Agreement. Pursuant to relevant clauses in this Agreement, except where expressly provided as
being in the sole and absolute discretion of a Party, Consent will not be unreasonably
withheld, conditioned or delayed.

‘Contract Year’ means 1 July to 30 June each year of the Term.

‘Contract Year One Cost Base’ has the meaning set forth in clause 10.3 of this Agreement.

‘Contract Year One Cost Base Transfers’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year One End Year True Up Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year One Quarterly MRC Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two Cost Base’ has the meaning set forth in clause 10.3 of this Agreement.

‘Contract Year Two Cost Base Transfers’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two End Year True Up Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two Quarterly MRC Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Zero Volume’ has the meaning set forth in clause 10.3 of this Agreement.

‘Control’ and derivative terms (such as Controlling or Controlled) means, with respect to any
legal entity, the possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of such legal entity, whether through the ownership of
voting securities or by contract or otherwise.

‘Cost Base Services’ means the Services designated as such under Schedule I (‘Schedule of
Services’) and as described in clause 10.1(a).

‘Cost Base Service Charges’ means the amounts payable by SITA SC and SITA INC to Equant with
respect to the Cost Base Services.

‘Cost Base Transfers’ means the cost of activities removed from the Cost Base after the
Effective Date as reasonably agreed by the Parties.

‘Cost Efficient’ means cost efficient from a tax and legal perspective.

‘Cost Share’ has the meaning set forth in clause 10.2 of this Agreement.

‘Country’ means any national or federal jurisdiction or territory.

‘Cumulative Contract Year One Interim MRC’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Cumulative Contract Year Two Interim MRC’ has the meaning set forth in clause 10.3 of this
Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-4	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Defaulting SITA Party’ has the meaning as set forth in clause 27.2 of this Agreement.

‘Detailed Billing Information’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Disclosing Party’ has the meaning set forth in clause 22.3(a) of this Agreement.

‘Dispute Resolution Procedures’, ‘Dispute Resolution Proceeding’ and ‘Dispute Resolution Process’ each means the procedures set forth in clause 8 of the Strategic
Relationship Umbrella Agreement.

‘Disputed Amounts’ has the meaning set forth in clause 18.5 of this Agreement.

‘Disputed Information’ has the meaning set forth in clause 18.5 of this Agreement.

‘Distributor’ means a customer of Equant that resells Network Services purchased from Equant
to one or more third parties.

[*]

‘Draft Price Book’ has the meaning set forth in Schedule J (‘Price Book Update Timescale’).

‘Duration’ has the meaning set forth in clause 16.3(a) of this Agreement.

‘Effective Date’ means 1 July 2001.

‘Effective Period’ has the meaning set forth in clause 7.1(a) of this Agreement.

‘Equant Group Companies’ means, at any time during the Term, Equant N.V. and its Affiliates.

‘Equant IPR’ means the IPR owned by the Equant Group Companies and used by any of the Parties (either themselves or as part
of the JV organisation) in providing, delivering or using Network Services, or in managing the Network or the resources required to provide, deliver
or use Network services.

‘Equant IT Services’ has the meaning set forth in clause 7 of the Transition and Management
Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-5	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Equant Non-Solicitation Obligation’ means the obligation of Equant not to make Active sales to customers
within the Air Transport Community, as set forth in clause 7.4 of this Agreement.

‘Equant Project Executive’ has the meaning set forth in clause 20.2 of this Agreement.

‘Equivalent Connections’ shall have the meaning set out in the JV Agreement.

‘Exception Priced Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

‘Exception Priced Services’ means the Services which are classified as “Exception Priced
Services” under Schedule I (‘Schedule of
Services’ and as described in clause 10.1(b)(ii).

‘Exclusivity Obligation’ means the obligation of the SITA Group Companies to purchase Network
Services exclusively from Equant, as set forth in clause 7.2 of this Agreement.

‘Executive Committee’ has the meaning set forth in clause 6.1 of the Strategic Relationship
Umbrella Agreement.

‘Force Majeure Event’ means any:

	(a)	 	fire, flood, earthquake, elements of nature or acts of God;
	 
	(b)	 	riot, civil disorder, rebellion, revolution, acts of war, or acts of terrorism;
	 
	(c)	 	third party strikes or lockouts affecting the non-performing Party’s ability to fulfill
its obligations; or
	 
	(d)	 	other causes beyond the reasonable control of the non-performing Party.

‘Forecast Dates’ means the Quarterly Forecast Dates and the Annual Forecast Date and in the
event that a Forecast Date does not fall on a Business Day, a reference to a Forecast Date
shall mean the Business Day immediately preceding the relevant Forecast Date.

‘France Telecom’ means France Telecom S.A., a société anonyme having its registered office at
6, place d’Alleray, 75015 Paris Cedex 5, France.

[*]

‘Generic Network Assets’ has the meaning set forth in clause 5.3 of this Agreement.

‘Generic Price Book’ means the Price Book that provides gross generic distributor prices with
respect to Generic Products/Services.

‘Generic Product/Service’ means a product or service that Equant offers generally to all of
its distributors and that is designated as such in the Price Books.

[*]

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-6	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Global One’ means Global One Communications Holding B.V. and Global One Communications World
Holding B.V of Klaprozenweg 75, 1033 NN Amsterdam, The Netherlands.

‘Global One ATC Contract’ has the meaning set forth in clause 6.4 of this Agreement.

[*]

‘Glossary’ means this Schedule A (Glossary) to this Agreement.

‘Heads of Agreement’ or ‘HOA’ means the Heads of Agreement executed by SITA SC, SITA INC,
France Telecom, and Equant on 19 November 2000.

‘Historical Activity Data’ has the meaning set forth in clause 10.5 of this Agreement.

‘Historical Data’ has the meaning set forth in clause 17(a) of this Agreement.

‘ICNO’ has the meaning set forth in the Transition and Management Agreement.

‘Independent Expert’ has the meaning set forth in clause 11.2 of this Agreement and shall
include any Replacement Independent Expert.

[*]

‘Insolvency Event’ has the meaning
as set forth in clause 27.3(a) of this Agreement.

‘Intellectual Property Rights’ or ‘IPR’ means any letters patent, patented articles, patent
applications, designs, copyrights, database rights, moral rights, inventions whether or not
capable of protection by patent or registration, techniques, technical data and know-how,
whether registered or unregistered and including applications, registrations and renewals in
connection thereunder for the grant of any such assets or rights of the foregoing descriptions
and all rights or forms of protection having equivalent or similar effect anywhere in the
world.

‘Interim Benchmarking Report’ has the meaning set forth in clause 11.6 of this Agreement.

‘Invoiced Party’ has the meaning set forth in clause 18.8(c) of this Agreement.

‘Invoicing Party’ has the meaning set forth in clause 18.8(c) of this Agreement.

‘IT Transition Period’ means the twenty-one (21) month period commencing on the Effective Date
and ending on the day before the twenty-first-month anniversary of the Effective Date.

‘JV Agreement’ or ‘JVA’ means the Joint Venture
Agreement executed by SITA SC, SITA Global
Telecommunication Services Limited, SITA Equant (formerly SITA Globetel Company) and Equant (formerly SITA
Telecommunications Holdings N.V.) on 2 October 1995, as amended.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-7	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Key Measurements’ has the meaning set forth in clause 1 Schedule F (‘Service Levels Schedule’) to this
Agreement.

‘Laws’ means:

	(a)	 	any applicable law, statute, regulation, ordinance or subordinate legislation in force
from time to time to which a Party is subject; and
	 
	(b)	 	any applicable directive, policy, rule, judgement, injunction, decree or order that is
binding on a Party and that is made or given by any government, agency thereof, or any
regulatory body;

of any Country, the European Union, or other national, federal, commonwealth, state,
provincial or local jurisdiction.

[*]

‘Losses’ means all losses, liabilities, damages, costs and expenses (including reasonable
legal fees, and disbursements including external costs of investigation, litigation,
settlement, judgement, interest and penalties).

‘MFN Agreement’ has the meaning set forth in clause 13.3(a) of this Agreement.

‘MFN Certification Report’ has the meaning set forth in clause 13.4(a) of this Agreement.

‘MFN Evaluation’ has the meaning set forth in clause 13.1(a) of this Agreement.

‘MFN Evaluation Report’ has the meaning set forth in clause 13.4(a) of this Agreement.

‘MFN Evaluator’ has the meaning set forth in clause 13.2 of this Agreement.

‘MFN Refund’ has the meaning set forth in clause 13.1(b) of this Agreement.

‘MFN Revised Net Price Book Prices’ has the meaning set forth in clause 13.1(b) of this
Agreement.

‘MFN Test(s)’ means the most favoured nation tests set forth in Schedule N (‘Instructions to
MFN Evaluator’).

‘Minimum Revenue Commitment’ or ‘MRC’ has the meaning set forth in clause 14 of this Agreement.

‘Minimum Unit Cost Reductions’ has the meaning set forth in clause 10.3 of this Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-8	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Modify’ and ‘Modification’ means to add to, expand, enhance, reduce, change, replace, vary,
derive or improve.

‘Net Price Book Prices’ means the prices derived by applying any applicable discounts to the
Price Books.

‘Net Price Book Activity’ means the billable activity applicable to the Net Price Book Prices.

‘Network’ means the network that is jointly managed by SITA SC and by Equant as at the
Effective Date pursuant to the JV Agreement, as such Network is modified throughout the Term.

‘Network Activity Forecasts’ means the Quarterly Network Activity Forecast and the Annual
Network Activity Forecast.

‘Network Implementation Action’ means a fully-developed business plan for a specific expansion
or modification of the Network.

‘Network Planning Committee’ means the committee established pursuant to clause 5.2 of this
Agreement.

‘Network Operational Performance Committee’ or ‘NOPC’ means the committee that is established
pursuant to clause 5.5 of this Agreement.

‘Network Resources” has the meaning set forth in the Transition and Management Agreement.

‘Network Services’ mean any product or service which is itself telecommunications carriage or
which includes telecommunications carriage as a component of such product or service.

‘Network Services Revenue’ means, in respect of a legal entity, the aggregate of all revenues
received from customers (other than from an Affiliate of such entity) from the sale of Network
Services, including all revenues received in respect of products that include Network Services
bundled with services other than Network Services.

‘Network Short Term Development Plan’ means a business plan for the development of the Network
that sits with Equant’s specific plans for the six (6) month period commencing from the date
of the Network Short Term Development Plan.

‘Network Strategic Plan’ means a long term strategic plan outlining Equant’s plans for the
Network.

[*]

‘Nomination Criteria’ has the meaning set forth in clause 1 Schedule K (‘Nomination and Selection of
Independent Expert’).

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-9	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Nominee’ has the meaning set forth in Schedule K (‘Nomination and Selection of Independent
Expert’).

‘Non-Cost Base Services’ means the Services designated as such under Schedule I (‘Schedule of
Services’).

[*]

‘Non-Renewed Revenue’ has the meaning set forth in clause 14(b) of this Agreement.

‘Operations and Procedures Manual’ means the manual to be developed by the Parties as described in clause 6.5 of this Agreement.

‘Overall Revenue’ means, in respect of a legal entity, the aggregate of all revenues received
from customers (other than an Affiliate of such legal entity) from the sale of any product or
service.

[*]

‘Pass Through Expenses’ means actual costs for Pass Through Services
that are charged by Equant to
SITA SC or SITA INC net of any related management fees as may be
agreed by the Parties (ie., without margin, markup or fee).

‘Pass Through Services’ means the Services which are classified as
 “Pass Through Services”
under Schedule I (‘Schedule of Services’).

‘Performance Targets’ has the
meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to
this Agreement.

‘Pre-Contractual Statements’ has the meaning as set forth in clause 30.6(a) of this Agreement.

‘Preliminary Price Book’ has the meaning set forth in Schedule J (‘Price Book Update
Timescale’).

‘Price Books’ means the Generic Price Book and the SITA Specific Price Book for the respective
Contract Year.

‘Price to Volume Assessment’ has the meaning set forth in clause 12.1 to this Agreement.

‘Price to Volume Assessment Report’ has the meaning set forth in clause 12.2 to this Agreement.

‘Priced Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-10	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Priced Services’ means the Services which are classified as “Priced Services” under Schedule
I (‘Schedule of Services’) and shall include any Bundled Tail Circuits.

‘Pricing Structure’ has the meaning set forth in clause 10.2 of this Agreement.

‘Product Council’ means the committee that is established pursuant to clause 4.2 of this
Agreement.

‘Proposed Action’ has the meaning set forth in clause 5.1 of this Agreement.

‘Quarterly Forecast Dates’ has the meaning set forth in clause 15.1(a) of this Agreement.

‘Quarterly Network Activity Forecast’ means a forecast of connections, traffic and other
Network activity for the period of twelve (12) calendar months commencing from the first day
of the calendar month immediately following the Quarterly Forecast Date.

‘Quarterly Network Activity Forecast Value’ has the meaning set forth in clause 16.1(a) of
this Agreement.

[*]

‘Recognisable Costs’ has the meaning set forth in clause 16.1(b) of this Agreement.

‘Reconciliation Report’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Reduction Amount’ has the meaning set forth in clause 14(b) of this Agreement.

‘Related Provisions’ means the Exclusivity Obligation, the Equant Non-Solicitation Obligation
and the SITA Group Companies Non-Solicitation Obligation.

‘Remedy Period’ has the meaning set forth in clause 7.3 of this Agreement.

‘Replacement Independent Expert’ has the meaning set forth in clause 11.6 of this Agreement.

‘Replacement MFN Evaluator’ has the meaning set forth in clause 13.7(b) of this Agreement.

‘Replacement Supplier’ means a third-party provider selected by SITA SC and/or SITA INC to
supply services to replace all or part of the Services (a) after the expiry or termination of
this Agreement; (b) following a partial removal of part of the Services from the scope of this
Agreement; or (c) following exercise by SITA SC of the Step-In Rights.

‘Reports’ means those reports specified in Schedule G (Reports) to this Agreement.

‘Service Charges’ has the meaning set forth in clause 10.3 of this Agreement.

‘Service Credits’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to this
Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-11	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Service Level’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to this
Agreement.

‘Service Level Default’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Agreement’)
to this Agreement.

‘Service Levels Schedule’ means Schedule F (‘Service Levels Schedule’) to this Agreement.

‘Services’ means the Network Services and the Support Services and ad hoc services.

‘Significant Forecast Deviation’ has the meaning set forth in clause 16.1(a) of this Agreement.

[*]

‘SITA Group Companies’ means, at any time during the Term, SITA SC, its Affiliates, including
SITA INC (so long as SITA INC is Controlled by the SITA INC Foundation).

‘SITA Group Companies Non-Solicitation Obligation’ means the obligation of the SITA Group
Companies not to make Active sales customers outside of the Air Transport Community, as set forth in
clause 7.5 of this Agreement.

‘SITA INC Non-Equant Network Services Revenue’ has the meaning set forth in clause 7.3 of this
Agreement

‘SITA IPR’ means the IPR owned by the SITA Group Companies and used by any of the Parties (either themselves or as part
of the JV organisation) in providing, delivering or using Network services, or in managing the Network or the resources required to provide, deliver or use Network Services.

‘SITA Relationship Team’ or ‘SRT’ has the meaning set forth in clause 6.2 of the Strategic
Relationship Umbrella Agreement.

‘SITA Marks’ mean the trade marks, service marks, brand names, trade names, business names and
logos of the SITA Group Companies that were used by Equant, or are embedded in the software,
systems, works of authorship and similar materials in Equant’s possession, as of the Effective
Date.

‘SITA Specific Discount’ means all discounts applied to gross prices set forth in the Price
Books by Equant on behalf of SITA SC, SITA INC and the SITA Group Companies and includes the
Volume Discount.

‘SITA Specific Price Book’ means the Price Book that provides prices applicable to SITA
Specific Products/Services.

‘SITA Specific Product/Service’ means a product and/or service (other than a Generic
Product/Service) developed or to be developed for the specific use of the SITA Group Companies
and their customers.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-12	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

[*]

‘Standard Cost Services’ means the Services which are classified as “Standard Cost Services
under Schedule I (‘Schedule of Services’).

‘Standard Cost Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

‘Step-In Rights’ has the meaning set forth in clause 5.4 of this Agreement.

‘Strategic Relationship Benefits’ has the meaning set forth in clause 7.8(b) of this Agreement.

‘Strategic Relationship Umbrella Agreement’ means the Strategic Relationship Umbrella
Agreement executed by France Telecom, SITA SC, SITA INC and Equant on 29 June 2001.

‘Support Services’ means all products and services listed in the Price Books that are not
Network Services.

‘Tail Circuits”, ‘Tie Lines’ or ‘Local Access’ means tail circuits, tie lines and local access.

[*]

‘Term’ has the meaning set forth in clause 2 of this Agreement.

‘Terminated Benchmark Period’ has the meaning set forth in clause 11.6 of this Agreement.

‘Terminated MFN Period’ has the meaning set forth in clause 13.7(c) of this Agreement.

‘Terminated Revenue’ has the meaning set forth in clause 14(b) of this Agreement.

‘Termination Period’ has the meaning as set forth in clause 27.9(a) of this Agreement.

‘Transaction’ means the transaction contemplated by the Contribution Agreement relating to
Global One and the Share Purchase Agreement.

‘Transfer’ has the meaning set out in the Transition and Management Agreement.

‘Transferred Company’ has the meaning set forth in clause 7.3(g) of this Agreement.

‘Transition and Management Agreement’ means the Transition and Management Agreement executed
by Equant and SITA SC on the 29 June 2001.

[*]

‘Volume’ has the meaning set forth in Schedule P (‘Unit Cost, Cost Base and Volume
Considerations’) to this Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-13	
	Restated Version with Amendment No. 1 (Errata)	 	

 

Commercial-in-Confidence

‘Volume Discount’ has the meaning set forth in clause 10.2 of this Agreement.

[*]

‘Year 2000 Cost Base’ has the meaning set forth in clause 10.2 of this Agreement.

‘Year 2000 Cost Share’ has the meaning set forth at clause 10.2 of this Agreement.

‘Year 2000 Price Book’ has the meaning set forth at clause 10.2(d) of this Agreement.

	 	 	 
	

	Services Agreement	 	Dated:  30 November 2001
	Schedule A (Glossary)	A-14	
	Restated Version with Amendment No. 1 (Errata)exv4w5

 

TRANSITION AND MANAGEMENT AGREEMENT

By and between

EQUANT, N.V.

And

SOCIÉTÉ INTERNATIONALE DE TÉLÉCOMMUNICATIONS AÉRONAUTIQUES S.C.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	RECITALS	 	 	 	1
	 
	1.	 	
DEFINITIONS AND INTERPRETATION
	 	1
	 
	2.	 	
TERM
	 	2
	 
	3.	 	
GENERAL PRINCIPLES
	 	2
	 
	4.	 	
TRANSFER OF NETWORK RESOURCES
	 	3
	 
	5.	 	
ACCESS TO THE GLOBAL NETWORK
	 	14
	 
	6.	 	
REGULATORY PRINCIPLES
	 	17
	 
	7.	 	
IT TRANSITION
	 	18
	 
	8.	 	
ASSETS TRANSITION
	 	22
	 
	9.	 	
PURCHASING AND PROCUREMENT TRANSITION
	 	23
	 
	10.	 	
OTHER SUPPORT SERVICES TRANSITION
	 	25
	 
	11.	 	
WORKSHOPS
	 	25
	 
	12.	 	
HUMAN RESOURCES
	 	26
	 
	13.	 	
PREMISES MATTERS
	 	29
	 
	14.	 	
JV AGREEMENT
	 	34
	 
	15.	 	
SITA ICNO COSTS AND COST SHARED COSTS
	 	34
	 
	16.	 	
REIMBURSEMENT OF RESTRUCTURING COSTS AND MATERIAL

FINANCIAL DETRIMENT COSTS
	 	42
	 
	17.	 	
CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS
	 	48
	 
	18.	 	
DATA PROTECTION
	 	50
	 
	19.	 	
WARRANTIES
	 	51
	 
	20.	 	
INDEMNITIES
	 	52
	 
	21.	 	
LIABILITY AND LIMITATION OF LIABILITY
	 	54
	 
	22.	 	
FORCE MAJEURE
	 	55
	 
	23.	 	
DISPUTE RESOLUTION
	 	55
	 
	24.	 	
TAXES; PAYMENT AND REIMBURSEMENT PROCEDURES
	 	56
	 
	25.	 	
LEGAL
	 	57

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
i	 	Dated: 30 November 2001

 

 

	 	 	 	 	 
	26.	 	
AGREEMENT NON-TERMINABLE
	 	57
	 
	27.	 	
GENERAL
	 	57
	 
	1.	 	
DEFINITIONS:
	 	1
	 
	2.	 	
INTERPRETATION
	 	2
	 
	3.	 	
CONNECTION OF SITA TO EQUANT’S GLOBAL NETWORK
	 	2
	 
	4.	 	
RESPONSIBILITIES OF SITA
	 	2
	 
	5.	 	
RESPONSIBILITIES OF EQUANT
	 	4
	 
	6.	 	
TERM AND TERMINATION
	 	4
	 
	7.	 	
GENERAL
	 	4
	 
	1.	 	
GENERAL PRINCIPLES
	 	3
	 
	2.	 	
NETWORK AND NON NETWORK SERVICES SUPPORT
	 	4

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
ii	 	Dated: 30 November 2001

 

 

Schedules

	 	 	 
	Schedule A	 	
Glossary
	 
	Schedule B	 	
IT JTF Guidelines
	 
	Schedule C	 	
Central Staff Countries
	 
	Schedule D	 	
Set Amounts
	 
	Schedule E	 	
IT Services Descriptions
	 
	Schedule F	 	
Equant Asset Funding Arrangement
	 
	Schedule G	 	
Network Access Agreement
	 
	Schedule H	 	
HR Administrative Services Arrangement
	 
	Schedule I	 	
Workshops

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
i	 	Dated: 30 November 2001

 

 

TRANSITION AND MANAGEMENT AGREEMENT

	 	 	 
	 	 	
dated 29 June 2001 (this “Agreement”)
	 
	 	 	
between
	 
	(a)	 	
Equant, N.V., a Dutch company having its registered office at 21-23
Gatwickstraat, 1043 GL Amsterdam, The Netherlands (“Equant N.V.”)
	 
	 	 	
and
	 
	(b)	 	
Société Internationale de Télécommunications Aéronautiques S.C., a
Belgian co-operative company having its registered office at 14, avenue
Henri Matisse, B-1140 Brussels, Belgium (“SITA SC”).

	 	 	 
	RECITALS 	 	 
	 
	A	 	
The Parties inter alia entered into the JV Agreement dated 2 October 1995
relating to the use and operation of their network resources.
	 
	B	 	
The Parties and France Telecom have decided to replace arrangements
developed between the Parties under the JV Agreement by a new strategic
relationship as provided in this Agreement together with the Strategic
Relationship Umbrella Agreement and the Services Agreement and the Account
Management Agreement (each of even date with this Agreement, and together,
the “Related Agreements”).
	 
	
Now, therefore, the Parties, in consideration of the premises, mutual covenants
and undertakings contained herein, agree as follows:

TERMS AND CONDITIONS

	 	 	 
	1.	 	
DEFINITIONS AND INTERPRETATION
	 
	1.1	 	
Definitions
	 
	 	 	
In this Agreement all capitalised terms shall have the meaning set out in
the Glossary attached to this Agreement as Schedule A or as defined in
the text of this Agreement.
	 
	1.2	 	
Interpretation
	 
	 	 	
In this Agreement, unless the express context indicates or requires a

contrary intention:

	 	 	 	 
	 	(a)	 	
words suggesting the singular include the plural and vice
versa;
	 
	 	(b)	 	
words suggesting any gender include any other gender;
	 
	 	(c)	 	
references to a person include a company, corporation,
partnership, joint venture, co-operative company, unincorporated or
incorporated association or organisation or statutory authority;

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
1	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(d)	 	
the table of contents and the headings used in this Agreement
are for ease of reference only and shall not affect the
interpretation of this Agreement;
	 
	 	(e)	 	
references to any agreement or document (including to this
Agreement) are to that agreement or document as amended,
supplemented, varied or replaced from time to time; 
	 
	 	(f)	 	
use of the words “includes” or “including” (or any variations
of them) shall be deemed to be followed by the words “without
limitation;” and
	 
	 	(g)	 	
a reference to a clause, paragraph, or Schedule means a clause, paragraph, or schedule to this Agreement.

	 	 	 
	2.	 	
TERM
	 
	 	 	
The term of this Agreement shall commence on the Effective Date and
continue in effect for a period of ten (10) years (the “Term”) unless
terminated earlier in accordance with the terms of this Agreement or
extended by written agreement of the Parties.
	 
	3.	 	
GENERAL PRINCIPLES
	 
	3.1	 	
General Principles

	 	 	 	 
	 	(a)	 	
Ownership and operational management of the Network is
transferred to Equant pursuant to the terms of this Agreement. The
Network Resources in a Country shall transfer, and the Other Network
Resources in that Country shall be assigned, from SITA SC or the
applicable SITA Group Company to Equant, as Legally Permissible in
accordance with the Prioritised Timetable, subject to Clause 4 of
this Agreement. The objective of the Parties is to effect as many
Network Transfers as possible within the first six (6) months
following the Effective Date and to effect the remaining Network
Transfers as soon as possible thereafter, all as Legally Permissible
and pursuant to Clause 4 of this Agreement. The Intangible Network
Resources will be licensed, transferred or assigned, as applicable,
from one Party to the other Party as provided in Schedule W to the Services Agreement.
	 
	 	(b)	 	
SITA SC’s privileged relationship is retained for the
fundamentals that are essential to maximise benefits to the Air
Transport Community so that SITA SC, as service provider to the Air
Transport Community, has appropriate guarantees and privileged
treatment, all as provided by the terms and conditions of this
Agreement and the Related Agreements.
	 
	 	(c)	 	
The Parties recognise SITA SC’s special links with the Air
Transport Community and that, in certain Countries, SITA SC will
continue to be an in-Country network operator as provided in this
Agreement. In order to provide users in such Countries with
world-wide seamless Network Services, the Parties agree that Equant
will provide SITA SC with access to the Global Network on the terms
and conditions set forth in this Agreement.
	 
	 	(d)	 	
The Parties acknowledge and accept that the Parties’ systems
and processes are now highly interdependent. Accordingly, the
Parties have agreed that certain transition arrangements, including
in relation to Support Processes and IT Services, are required in
order to achieve the efficient separation of SITA SC’s (or the
applicable SITA Group Company’s) and Equant’s systems and processes
and to achieve continuity of each Party’s business operations, as
provided in this Agreement. The Parties agree to achieve the IT
Transition as soon as reasonably practicable as provided in Clause
7.
	 
	 	(e)	 	
In meeting their obligations or enforcing their rights under
this Agreement, the Parties will use reasonable commercial efforts
to investigate and implement those actions

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
2	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
that are required to ensure that such obligations and/or rights are
carried out or enforced in a way that meets legal obligations and,
as far as commercially reasonable, are Cost Efficient.
	 
	 	(f)	 	
The Parties will co-operate in their communications as
provided in Clauses 4.4(e)6, 12 , 16.4(f)(ii) 17 and 24.1.

	 	 	 
	3.2	 	
The principles of the agreement set out in this Clause 3 are intended for
interpretative purposes and to serve as a general introduction to this
Agreement, and are not intended to alter the plain meaning of the express
terms and conditions of this Agreement. To the extent that any of the
express terms and conditions of this Agreement are ambiguous or are
inconsistent, the principles of the agreement set out in this Clause 3 may
be used to interpret the express terms and conditions of this Agreement.
	 
	4.	 	
TRANSFER OF NETWORK RESOURCES
	 
	4.1	 	
General Network Transfer Obligation
	 
	 	 	
As Legally Permissible, and in accordance with this Clause 4, (i) SITA SC
(or the applicable SITA Group Company) shall transfer and Equant shall
receive the relevant Network Resources in each Country, and (ii) SITA SC
(or the applicable SITA Group Company) shall assign, and Equant shall
accept the assignment of, all Other Network Resources relating to such
Country. Upon the mutual agreement of the Parties, the Network Transfer
in any Country may be effected by a transfer to Equant of the capital
stock SITA SC owns in the applicable SITA Group Company holding the
relevant Network Resources and the Other Network Resources or by other
means. A network transfer form shall be executed indicating the
effective date of each Network Transfer.
	 
	4.2	 	
Joint Task Force

	 	 	 	 
	 	(a)	 	
The Parties shall establish a joint task force (the “Joint
Task Force”). The purpose of the Joint Task Force shall be to:

	 	 	 	 
	 	(i)	 	
establish, monitor and update the Prioritised
Timetable as provided in Clause 4.2(c); and
	 
	 	(ii)	 	
co-ordinate all of the activities of each Party
that are necessary to effect a Transfer in each specified
Country in accordance with the Prioritised Timetable Transfer
Process.

	 	 	 	 
	 	(b)	 	
The Joint Task Force will be composed of representatives of
both SITA SC and Equant, which may include representatives of
applicable disciplines, such as project management, tax, regulatory,
legal, finance and human resources matters.
	 
	 	(c)	 	
The Joint Task Force will establish and update the
Prioritised Timetable, including the schedule for each Transfer in a
Country (i) pursuant to Clause 4.3(c), 4.3(d) or 4.6 of this
Agreement, (ii) if the Transfer is not Legally Permissible, or (iii)
as otherwise mutually agreed by the Parties.
	 
	 	(d)	 	
The Joint Task Force shall, upon request of the Executive
Committee, report the status of Transfer activities to the Executive
Committee. All decisions of the Joint Task Force, including with
respect to establishing the Prioritised Timetable, shall require
mutual agreement of the Parties’ respective representatives.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
3	 	Dated: 30 November 2001

 

 

	 	 	 
	4.3	 	Timing of Transfers

	 	 	 	 
	 	(a)	 	
Network Transfers

	 	 	 	 
	 	(i)	 	
Immediately following the Effective Date, or as
soon as practicable thereafter, SITA SC (or the applicable
SITA Group Company) and Equant shall complete the Network
Transfers in respect of the Countries listed in Schedule C as
Legally Permissible and in accordance with the Prioritised
Timetable, except as otherwise provided under Clause 4.2(c).
	 
	 	(ii)	 	
For those Countries not listed in Schedule C,
SITA SC (or the applicable SITA Group Company) and Equant
shall complete the Network Transfers in each such Country as
Legally Permissible and in accordance with the Prioritised
Timetable with the objective of completing such Network
Transfers within six (6) months following the Effective Date
(subject to Clause 4.2(c)) or as soon as possible thereafter.

	 	 	 	 
	 	(b)	 	
Partial Transfers and Retention of Network Resources and
Other Network Resources
	 
	 	 	 	
SITA SC (or the applicable SITA Group Company in any Country) shall
transfer all Network Resources in a Country to Equant, and commence
the transfer of all Other Network Resources, simultaneously at the
time specified in the Prioritised Timetable, except as provided in
Clauses 4.3(b)(i) and 4.3(b)(ii) below.

	 	 	 	 
	 	(i)	 	
Partial Transfers Prior to a Network Transfer

	 	 	 	
Prior to the Network Transfer in any Country, the Parties
may implement Partial Transfers in accordance with the
principles below:

	 	 	 	 
	 	(A)	 	
Equant’s Regulatory Status
	 
	 	 	 	
To the extent that the transfer of certain Network
Resources and/or Other Network Resources in advance of
the remaining Network Resources and/or Other Network
Resources in a Country would assist Equant’s
regulatory license, authority or status without being
detrimental to that of SITA SC (or the applicable SITA
Group Company) pursuant to Clause 6, such Partial
Transfer may take place as part of the Prioritised
Timetable Transfer Process. Any Network Resources
and/or Other Network Resources that are so transferred
to Equant in advance of the remaining Network
Resources and/or Other Network Resources in a Country
will be made available by Equant to SITA SC (or the
applicable SITA Group Company) as required for use in
conducting Network Operations in that Country.
	 
	 	(B)	 	
Facility Management or Similar Arrangement
	 
	 	 	 	
To the extent commercially beneficial to Equant and
not detrimental to SITA SC (or the applicable SITA
Group Company), including in respect of its regulatory
license, authority or status in any Country pursuant
to the principles of Clause 6, SITA SC (or the
applicable SITA Group Company) may sub-contract the
facility management of its In-Country Network
Operations to Equant under a facilities management or
other similar agreement, under terms to be agreed
between the Parties prior to the implementation of
such arrangement. The applicable Network Resources
and/or Other Network Resources will then be
transferred to Equant in advance of the remaining
Network Resources and/or Other Network Resources in a
Country, as

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
4	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
reasonably required for the implementation of such
arrangement and in accordance with the Prioritised
Timetable Transfer Process.
	 
	 	(C)	 	
Other Network Resources
	 
	 	 	 	
Where commercially beneficial to Equant and not
detrimental to SITA SC (or the applicable SITA Group
Company), including in respect of its regulatory
license, authority or status in any Country pursuant
to the principles of Clause 6, SITA SC or the
applicable SITA Group Company will transfer such Other
Network Resources as requested by Equant in advance of
the remaining Network Resources and/or Other Network
Resources under the terms of a contract to be agreed
prior to the implementation of such arrangement. The
applicable Other Network Resources will then be
transferred to Equant, as required for the
implementation of such arrangement and in accordance
with the Prioritised Timetable Transfer Process. Such
Other Network Resources that have been transferred
will be made available by Equant to SITA SC (or the
applicable SITA Group Company) as required for use in
conducting Network Operations in that Country.
	 
	 	(D)	 	
Network Assets
	 
	 	 	 	
Other Partial Transfers in respect of Network Assets
in advance of the remaining Network Resources and/or
Other Network Resources may be implemented in
accordance with Clause 4.5 below and the Prioritised
Timetable Transfer Process.
	 
	 	(E)	 	
Network Staff
	 
	 	 	 	
Other Partial Transfers in respect of Network Staff in
advance of the remaining Network Resources and/or
Other Network Resources may be implemented in
accordance with Clause 4.4 below and the Prioritised
Timetable Transfer Process.
	 
	 	(F)	 	
Further Partial Transfers
	 
	 	 	 	
Where commercially beneficial to Equant and not
detrimental to SITA SC (or the applicable SITA Group
Company), including in respect of its regulatory
license, authority or status in any Country pursuant
to the principles of Clause 6, the Parties may agree
to further transfers of Network Resources and/or Other
Network Resources as part of the Prioritised Timetable
Transfer Process, provided, however, that with respect
to Network Staff the Parties agree to minimise Partial
Transfers of such Network Staff to the extent
commercially reasonable.

	 
	(ii)            Retention of Network Resources and Other Network
Resources

	 	 	 	 
	 	(A)	 	
To the extent that the retention by
SITA SC (or the applicable SITA Group Company) of
certain Network Resources and/or Other Network
Resources in a Country after the Network Transfer in
such Country is reasonably commercially required to
assist SITA SC (or the applicable SITA Group Company)
to retain the appropriate regulatory license, authority
or status following the Network Transfer in accordance
with Clause 6, or would otherwise be significantly
commercially beneficial to either Party, then the
Parties agree that SITA SC (or the applicable SITA
Group Company) may retain such

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
5	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
Network Resources and/or Other Network Resources for
so long as SITA SC (or the applicable SITA Group
Company) is required to do so or the applicable Party
continues to derive such significant commercial
benefit. Any Network Resources or Other Network
Resources that are so retained by SITA SC (or the
applicable SITA Group Company) after the Network
Transfer in such Country will continue to be subject
to Clause 5 of this Agreement.
	 
	 	(B)	 	
Once SITA SC (or the applicable
SITA Group Company) is no longer so required to retain
any such Network Assets or Other Network Resources, or
once the applicable Party ceases to derive such
significant commercial benefit with respect to such
Network Resources or Other Network Resources, such
Network Resources and/or Other Network Resources will
be transferred to Equant as part of the Prioritised
Timetable Transfer Process.

	 	 	 
	(c)	 	
Equant will have the right, for bona fide commercial reasons
at any time prior to the completion of a Network Transfer in a
Country, to delay or abandon the Network Transfer in such Country.
Equant will promptly notify SITA SC if Equant chooses to delay or
abandon the Network Transfer in such Country. Any Network Resources
or Other Network Resources retained by SITA SC in such Country will
continue to be subject to Clause 5 of this Agreement, until the
time, if any, that the transfer of such Network Resources, or
license or assignment of such Other Network Resources, can be
completed.
	 
	(d)	 	
Joint Decision Making for the Timing of Transfers

	 	 	 	 
	 	(i)	 	
        If a scheduled Transfer will cause the Weighted
Aggregate RC/MFD Liabilities (as defined in Clause 4.3(d)(ii)
below) from all Transfers scheduled as of that date to equal
or exceed three hundred million U.S. Dollars (US$300,000,000)
(the “Transfer Threshold”) then SITA SC shall have the right
to delay or abandon such scheduled Transfer and all subsequent
Transfers during any and all periods that the Weighted
Aggregate RC/MFD Liabilities from all Transfers then scheduled
equals or exceeds the Transfer Threshold. For the avoidance
of doubt, SITA SC shall not have such right during any periods
in which the Weighted Aggregate RC/MFD Liabilities from all
Transfers then scheduled do not equal or exceed the Transfer
Threshold.
	 
	 	(ii)	 	
        As used in this Clause 4.3(d), “Weighted
Aggregate RC/MFD Liabilities” means, at any given time during
the Term, the sum of:

	 	 	 	 
	 	(A)	 	
the total Restructuring Costs and
Material Financial Detriment Costs paid by Equant to
SITA SC (or the applicable SITA Group Company) as of
such time;
	 
	 	(B)	 	
in respect of Restructuring Costs
or Material Financial Detriment Costs that are
anticipated but unpaid at such time, the total of the
products of (i) the gross estimated amount of each such
Restructuring Cost or Material Financial Detriment Cost
in respect of which the Parties have agreed (if
appropriate, based on the advice of joint external
advisors) that there is an exposure for potential
liabilities, (ii) multiplied in each case by the
percentage specified in the table below that
corresponds to the estimated risk which the Parties
have agreed to ascribe to such exposure (if applicable,
after having taken joint external advice (including, as
appropriate, as to the gross

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
6	 	Dated: 30 November 2001

 

 

	 	 
	 	amount of the exposure, the method of calculation and
the likelihood of such liability arising)) (subject to
Clause 4.3(d)(iii) below).

 

	 	 	 
	Risk	 	Probability
	
	 	

	High
	 	[*]
	Medium
	 	[*]
	Low
	 	[*]
	Remote
	 	[*]

	 	 	 	 
	 	(iii)	 	
If the Parties’ external Tax advisor has advised
of a possible Tax liability in respect of a Transfer for which
Equant may be obligated to reimburse SITA SC (or the
applicable SITA Group Company) under this Agreement as a
Material Financial Detriment and, following the relevant
Transfer:

	 	 	 	 
	 	(A)	 	
such Taxes are assessed, then the
projected amount of such Taxes for the remaining time
periods during the five (5) years following the
Transfer for which Equant would be obligated to
reimburse SITA SC (or the applicable SITA Group
Company) as Material Financial Detriment Costs under
this Agreement will be re-evaluated, with the
rebuttable presumption that such Taxes be deemed to
have a “high” probability; or
	 
	 	(B)	 	
such Taxes that were projected to
be assessed for a time period during the five (5) years
following the Transfer are not assessed at the
applicable Tax audit in respect of such time period (or
within the relevant statute of limitations for such
time period), then the projected Taxes for remaining
time periods during such five (5) years will be
re-evaluated, with the rebuttable presumption that such
projected Taxes will not be included in the calculation
of the Weighted Aggregate RC/MFD Liabilities.

	 	 	 	 
	 	(iv)	 	
        Either Party may request that the Parties may
re-evaluate their previous estimates in Clauses 4.3(d)(ii)(B).
If appropriate, they may seek additional external advice.
	 
	 	(v)	 	
        The Parties will mutually agree on the joint
advisors who will render advice to the Parties in implementing
this Clause 4.3(d).

	 	 	 
	4.4	 	
Transfer of Network Staff

	 	 	 
	(a)	 	
The transfer of Network Staff in a Country shall be effected
by the transfer of their employment (including employment contracts,
if appropriate) as part of the Network Transfer for that Country, it
being understood and agreed that the Partial Transfers of Network
Staff set forth in Clauses 4.4(b) and 4.4(c) may be agreed upon
between the Parties as part of the Prioritised Timetable Transfer
Process.
	 
	(b)	 	
Accounting Staff

	 	 	 	 
	 	(i)	 	
Partial Transfers
	 
	 	 	 	
        With respect to each Country, the Parties will agree on
suitable arrangements for the transfer of local accounting
staff where applicable in order to manage the accounting of
the respective resources in such Country following any
Partial Transfer pursuant to Clause 4.3(b)(i) above or the
retention of Network Resources and/or Other Network
Resources pursuant to Clause 4.3(b)(ii) above. The Parties
agree that if SITA SC (or the applicable SITA

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
7	 	Dated: 30 November 2001

 

 

	 	 
	 	Group Company) has only one local accountant in any such
Country, then SITA SC will not be required to transfer such
accountant pursuant to this Clause 4.4(b)(i).

	 	 	 
	(ii)	 	Network Transfers

	 	 	 
	(A)	 	
In a Country where SITA SC (or the
applicable SITA Group Company) employs local
accountants for the purposes of the applicable ICNO,
the following provisions will apply to the transfer of
such local accountants upon the Network Transfer in
such Country. Unless otherwise agreed or not
practicable, all such local accountants shall be
transferred, except that where SITA SC employs three
(3) to five (5) such local accountants, SITA SC shall
retain one (1) such accountant and where SITA SC
employs six (6) or more such local accountants, SITA SC
shall retain two (2) local accountants. In addition,
SITA SC (or the applicable SITA Group Company) will be
entitled to retain in its employ all local accountants
who are responsible for processing payments under the
Circuit Contracts relating to such ICNO until
substantially all such Circuit Contracts have been
assigned to Equant, it being agreed that prior to such
local accountants’ transfer to Equant’s employ, upon
Equant’s request, such retained local accountants shall
provide assistance from time to time to Equant in
processing payments under any Circuit Contracts that
have already been assigned at such time to Equant.
	 
	(B)	 	
As part of a Network Transfer where
there are three (3) or more local accountants, the
Parties will mutually agree whether the head accountant
in a Country will transfer to Equant or be retained by
SITA SC (or the applicable SITA Group Company)
following the Network Transfer. The Parties will first
cooperate to decide whether the head accountant and
which of the other local accountants should be retained
by SITA SC reasonably taking into account the Parties’
respective requirements. However, if the Parties fail
to reach such agreement, then Equant will have the
first choice of which individual local accountant will
transfer to it and SITA SC (or the applicable SITA
Group Company) will have the second choice as to which
individual local accountant it will retain. This
process will be repeated until all local accountants
have been allocated to the Parties subject to Clause
4.4(b)(ii)(A).
	 
	(C)	 	
Regional accounting staff
reporting to the finance director of SITA-Equant SC
immediately prior to the Effective Date shall be
transferred to Equant at the same time as central staff
in the Country in which they are located. With respect
to other members of the regional accounting staff, the
Parties shall agree on suitable arrangements for the
transfer of such staff to Equant taking account of the
number of Network Transfers previously completed in the
region concerned as compared to the number of ICNOs
remaining with SITA SC in such region.
	 
	(D)	 	
If, following the Network Transfer
in a Country SITA SC is not entitled to retain any
local accountants in such Country pursuant to Clause
4.4(b)(ii)(A), then Equant will, at its own expense,
maintain the accounting records and perform associated
accounting functions (e.g. filing of VAT declarations)
for SITA SC in such Country as required for the
applicable ICNO Supply Contracts for as long as any

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
8	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
such Supply Contracts have not been transferred or
assigned to Equant.

	 	 	 
	(c)	 	
Central Staff

	 	 	 	 
	 	(i)	 	During calendar year 2001, Equant will have the
right to effect transfers of central staff in advance of the
transfer of all other Network Staff solely in (i) those
Countries identified in Schedule C, and (ii) Egypt, Brazil and
South Africa. The Parties agree in principle that in all
other cases central staff will transfer in a given Country at
the same time as the transfer of all other Network Staff in
that Country. However, if a significant delay is reasonably
anticipated in effecting the Network Transfer in Country,
Equant may at its option effect the Partial Transfer of the
central staff in such Country in advance of the Network
Transfer in such Country and the Prioritised Timetable will be
updated accordingly.
	 
	 	(ii)	 	Commencing January 1, 2002, the Parties agree to
transfer central staff and regional staff in a Country at the
same time as all other Network Staff in that Country.
However, if the Network Transfer in a Country is not Legally
Permissible but there are a significant number of central
staff, critical staff and/or regional staff in that Country,
Equant may at its option effect the Partial Transfer of the
relevant central staff, critical staff and/or regional staff
separately, and the Prioritised Timetable will be updated
accordingly.

	 	 	 
	(d)	 	
Terms and Conditions for Network Staff at Time of Transfer
	 
	 	 	
The following provisions apply to the transfer of Network Staff to
the employment of Equant as part of Network Transfers.

	 	 	 	 
	 	(i)	 	Except as provided in the next sentence, Network
Staff in a Country will transfer on current contractual and
statutory terms and conditions with continuity of service
(i.e., seniority) preserved. Where this is not commercially
and reasonably feasible, Network Staff in a Country will
transfer on terms and conditions that are, in the aggregate,
no less favourable than those terms and conditions such
Network Staff received immediately prior to their transfer.
In those Countries where Network Staff have already
transferred to Equant and a particular benefit, term or
condition was changed at the time of that transfer, Equant
may, in its sole and absolute discretion, decide to make the
same change on the transfer of the remaining Network Staff.
	 
	 	(ii)	 	Equant reserves the right, in its sole
discretion, to set, on a Country-by-Country basis, the
subsequent terms and conditions of employment for Network
Staff transferred from SITA SC. In doing so, Equant will take
into consideration relevant conditions such as applicable
legal requirements, contractual obligations and market
conditions. In addition, for the twelve (12) months after the
transfer of Network Staff in a particular Country, Equant will
consult with SITA SC prior to making any changes to the
employment terms and conditions of such Network Staff in that
country, including taking into consideration SITA SC’s
recommendations, provided that all decisions will be in
Equant’s sole and absolute discretion.
	 
	 	(iii)	 	If Equant makes commitments to Global One in
respect of the duration that Equant will maintain the existing
employment terms and conditions (including redundancy
benefits) for Global One employees who transfer to Equant in a
Country, then Equant commits to SITA SC to maintain the
existing employment terms and conditions (including redundancy
benefits)

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
9	 	Dated: 30 November 2001

 

 

	 	 
	 	for Network Staff who transfer thereafter to Equant in that
Country for the same duration

	 	 	 
	(e)	 	
The Parties will co-operate in communications to Network
Staff related to the new strategic relationship of the Parties and
any Transfer in any Country.

	 	 	 
	4.5	 	
Transfer of Network Assets

	 	 	 
	(a)	 	
For those Network Assets whose acquisition was funded by SITA
SC, Equant shall pay SITA SC for such Network Assets calculated at
net book value on the date of applicable Transfer and payable within
30 days (unless otherwise agreed). For those Network Assets whose
acquisition was funded by Equant under the EAFA (set forth in
Schedule F), then such payment shall be made under the terms of the
EAFA.
	 
	(b)	 	
Where it is not detrimental to SITA SC’s (or the applicable
SITA Group Company’s) regulatory license, authority or status in
accordance with Clause 6, Network Assets in any Country whose
acquisition has been funded by Equant pursuant to the EAFA will be
transferred to Equant as soon as legally possible and commercially
reasonable. Any Network Assets transferred pursuant to this Clause
4.5(b) prior to the Network Transfer in the Country will be made
available to SITA SC (or the applicable SITA Group Company) under
the terms of a written agreement to be entered between the Parties
prior to such transfer. The first such transfer of Network Assets
in a Country will be made in accordance with the Prioritised
Timetable Transfer Process. Thereafter such transfers will be made
as agreed between the Parties. To the extent commercially
reasonable, the final transfer of such Network Assets funded by
Equant pursuant to the EAFA shall take place at the same time or as
promptly as possible after Equant takes on full responsibility for
the direct purchasing of Network Assets in accordance with Clause
4.5(c) below.
	 
	(c)	 	
Equant shall take on full responsibility for the direct
purchasing of Network Assets as promptly as commercially reasonable.
In any event, the EAFA shall no longer apply in respect of all
future orders for purchases of assets in any Country upon the date
on which all or substantially all of the Network Assets have been
transferred to Equant, unless:

	 	 	 
	(i)	 	it is not legally possible for Equant to do so,
in which case SITA SC will continue to purchase Network Assets
under the EAFA for as long as it is not so legally possible
and Equant shall use commercially reasonable efforts to take
such actions and obtain such consents as are required to make
such direct purchasing legally possible;
	 
	(ii)	 	the staff necessary to perform the direct
purchasing function have not been transferred to Equant, in
which case Equant shall assume the direct purchasing function
as of the date such staff are transferred or Equant otherwise
has the necessary staff to carry out the function; or
	 
	(iii)	 	the Parties agree in writing to extend the EAFA
for a given time period.

	 
	For the avoidance of doubt, SITA SC (or the applicable SITA Group
Company) will no longer be obligated to purchase Network Assets in
a Country under the EAFA with respect to future orders for the
purchase of assets as of the effective date of the Network Transfer
in that Country, except as otherwise provided in Clause
4.5(c)(iii). If SITA SC retains Network Assets in a Country
pursuant to Clause 4.3(b)(ii), then (i) the EAFA will continue with
respect to such retained Network Assets in such Country, (ii)
Equant, at its own expense, shall give SITA SC (or the applicable
SITA Group Company) reasonable assistance with respect to
purchasing Network Assets in such Country, and accounting
assistance required as a result of SITA SC (or the

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
10	 	Dated: 30 November 2001

 

 

	 	 
	 	applicable SITA Group Company) continuing to operate in such
Country, and (iii) no Set Amount shall be included in the SITA ICNO
costs pursuant to Clause 15.1(e)(xiv) with respect to such Country.

	 	 
	4.6	
Prioritised Timetable Transfer Process

	 	 	 
	(a)	 	
The Parties recognise their mutual objective to achieve
Transfers with minimal interruption in Services. With regard to a
Transfer in a given Country, Equant will use commercially reasonable
efforts to minimise any material interruptions in the Services as a
result of the Transfer in such Country.
	 
	(b)	 	
Preparations for a Transfer

	 	 	 	 
	 	(i)	 	Equant shall meet all legal and regulatory
conditions required for a Transfer, including, as applicable,
having a legal entity incorporated or organised under the
applicable law in the relevant Country and complying with the
local registrations as appropriate for such legal entity
(including, as required, VAT registrations, other tax
registrations, employer registrations, licences or other
regulatory permits, bank accounts, the preparation of the
required legal contracts and the completion of applicable
consultation procedures with employees).
	 
	 	(ii)	 	Prior to a Transfer in a Country, Equant will,
with regard to those requirements which are reasonably
foreseeable prior to such Transfer, be ready to operate the
relevant Network Resources in that Country relating to, as
applicable: (1) having a central/regional structure in place
to supervise and support local operations; (2) systems and
processes; (3) fixed assets; (4) treasury; (5) direct
purchasing of assets; (6) importation of assets; and (7)
management of the facilities in such Country specified in the
Master Premises Plan.

	 	 	 	 
	 	(A)	 	
If a Transfer takes place but, as a
result of a failure to comply with a reasonably
foreseeable requirement, Equant is not ready and fails
to operate in the applicable Country with regard to any
of the requirements specified in Clause 4.6(b)(ii) (a
“Lack of Readiness”), and such Lack of Readiness has an
adverse impact on SITA SC (or the applicable SITA Group
Company), then Equant will indemnify SITA SC for the
Losses incurred by SITA SC (or the applicable SITA
Group Company) due to Equant’s Lack of Readiness, to
the extent that such Losses would not have been
incurred by SITA SC (or the applicable SITA Group
Company) had the Lack of Readiness not occurred.
	 
	 	(B)	 	
If a Transfer is effected and a
Lack of Readiness occurs and is continuing, then Equant
will use commercially reasonable efforts to promptly
rectify the Lack of Readiness. Either Party may offer
to assist the other Party to rectify the Lack of
Readiness and may propose a specified course of action
to do so (it being understood that such request shall
not be unreasonably refused). The Parties shall then
mutually agree which actions are to be taken, estimate
the costs associated with such actions and co-operate
in taking such actions. Any reasonable costs, as
agreed by the Parties, incurred by SITA SC (or the
applicable SITA Group Company) within such cost
estimate as a direct result of taking the agreed
actions shall be reimbursed by Equant. If a Transfer
is effected and Equant is not ready and fails to
operate in the applicable Country with regard to any of
the requirements specified in Clause 4.6(b)(i), the
Parties may offer to

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
11	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
assist each other in accordance with the process set
out in this Clause 4.6(b)(ii)(B) with any reasonable
costs within the agreed estimate (other than
Restructuring Costs) associated with actions taken
being borne by the Parties in accordance with the
percentages specified in Clause 4.7.
	 
	 	(C)	 	
If a Lack of Readiness occurs and
is continuing (1) which was not reasonably foreseeable
or where a requirement was materially changed, and (2)
when it was too late to cancel the Transfer, or
temporarily delay the Transfer until the requirement
has been satisfied, then Equant’s indemnity in Clause
4.6(b)(ii)(A) above shall not apply, provided however
that Equant will reimburse SITA SC for the costs it
incurs, if any, pursuant to oClause 4.6(b)(ii)(B). For
the avoidance of doubt, Equant will have the right in
any event to proceed with the Transfer.

	 	 	 	 
	 	(iii)	 	Transfer of Supply Contracts

	 	 	 	 
	 	(A)	 	
Equant shall use commercially
reasonable efforts to obtain all required consents to
the assignment of relevant Supply Contracts or to
otherwise achieve the transfers of such Supply Contracts
into Equant’s name in a
Country (including, where possible, on the same terms
and conditions as existed prior to the Transfer), with
the objective of obtaining such consents within ninety
(90) days following the corresponding Transfer (such
date, the “Target Date”). Both Parties acknowledge
that there is a dependency on actions by third parties
in order to achieve consents to assignments.
Therefore, SITA SC (or the applicable SITA Group
Company) will use commercially reasonable efforts to
help obtain such consents and will co-operate with
Equant as reasonably requested by Equant in obtaining
such consents.
	 
	 	(B)	 	
No later than sixty (60) days
following any such corresponding Transfer, Equant shall
provide SITA SC (by electronic mail or facsimile) with
(1) a schedule of all Supply Contracts showing which
have and which have not been transferred into Equant’s
name within such sixty (60) day period, and (2)
Equant’s reasoned assessment as to whether the
remaining Supply Contracts can be expected to be
transferred by the Target Date.
	 
	 	(C)	 	
The Parties shall then mutually
agree on any required accelerated action plan to
achieve the transfers of at least ninety-five percent
(95%) of all Supply Contracts in such Country
(calculated based on the number of monthly invoices) by
the Target Date or such other mutually agreed date as
is appropriate under the circumstances (such date, the
“Revised Target Date”) with the objective of achieving
such transfers promptly.
	 
	 	(D)	 	
Where the Supply Contracts have not
all been transferred into Equant’s name by the Target
Date or the Revised Target Date, as applicable, SITA SC
may continue to include a Set Amount in the SITA ICNO
Costs, as set out in Clause 15.1(e)(xiv) for the
continued administration of such Supply Contract until
the date on which all such Supply Contracts are
transferred. Until ninety-five percent (95%) (as
calculated above) of such Supply Contracts have been
transferred to Equant such Set Amount shall be equal to
fifty percent (50%) of the last relevant Set Amount
submitted for the applicable

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
12	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
Country, and thereafter it shall be equal to fifty
percent (50%) of the fixed amount for small Countries.

	 	 	 	 
	 	(E)	 	
An amount equal to the Set Amount
pursuant to Clause 4.6(b)(iii)(D) shall be added to
such Set Amount if Equant does not use commercially
reasonable efforts to implement the accelerated action
plan for a Country pursuant to Clause 4.6(b)(iii)(C).
	 
	 	(F)	 	
As of the date that is nine (9) months
following the Network Transfer in a Country, SITA SC
shall have no further responsibility to make any
payments under the relevant Supply Contracts in such
Country and shall return all further invoices received
after such nine (9) month period to the sender with a
notice to send all further invoices to Equant. SITA SC
shall promptly notify Equant in writing upon taking
such action.

	 	 	 	 
	 	(iv)	 	As part of the Prioritised Timetable Transfer
Process in connection with a Network Transfer, the Parties
will agree on procedures (to include (A) nominating persons to
open SITA SC’s or the applicable SITA Group Company’s mail who
are either Equant employees or Equant employees seconded to
SITA SC or a SITA Group Company on the condition that such
persons sign specific confidentiality agreements with SITA SC
and Equant relating to this task, or (B) employees of SITA SC
(or the applicable SITA Group Company) in the relevant Country
opening SITA SC’s (or the applicable SITA Group Company’s)
mail) to minimise the risk that mail is mislaid or misdirected
during the period in which the assignment or transfer of such
assignments of supply contracts is taking place.

	 	 
	(c)	
The Prioritised Timetable Transfer Process shall include the
following phases in respect of each Transfer in any Country:

	 	 	 	 
	 	(i)	 	
the verification phase, which will include the
completion of verification activities such as due diligence on
legal, regulatory, tax, human resources, finance and other
aspects as required. Following such phase, the Joint Task
Force shall update the Prioritised Timetable by verifying, and
adjusting if necessary, the Target Date for the Transfer to
occur;
	 
	 	(ii)	 	
the implementation phase, which will include the
obtaining of any legal clearances, the making of the required
legal, tax, and regulatory registrations as described in
Clause 4.6(b)(i), the establishment of a local bank account,
and the completion of general communications with relevant
Network Staff transferring in accordance with local rules or
good commercial practice. At the end of such phase, the Joint
Task Force shall update, as necessary, the Prioritised
Timetable by setting the actual date for the Transfer to
occur. At the same time, Equant shall verify that it is ready
to operate in such Country, and if Equant is aware that it is
not ready to operate in the relevant Country pursuant to
Clause 4.6(b)(ii), it will advise the Joint Task Force
accordingly and the Prioritised Timetable will be updated as
necessary; and
	 
	 	(iii)	 	
the transfer phase, in which the relevant
Network Staff transferring and suppliers are formally notified
of the Transfer and any other required actions (such as
required inter-company contracts and transfer of pay roll) are
carried out.

	 
	The Parties agree that to the extent that the verification and
implementation phases include independent steps which may reasonably be
commenced prior to other steps being completed, then such independent
steps may be commenced as soon as commercially reasonable.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
13	 	Dated: 30 November 2001

 

 

	 	 	 
	4.7	 	
Costs of Performing Transfers
	 
	 	 	
The Parties agree to share the reasonable tax, legal and other agreed
fees of external advisors incurred by each Party in investigating and
implementing Transfers, with SITA SC bearing [*] of such
aggregated costs and Equant bearing [*] of such
aggregated costs. Such aggregated costs will also include a standard
amount for the accounting activities required to effect the Transfers for
large, medium, small and very small Countries (categorised pursuant to
Schedule D). Such standard amount will be calculated based on the time
spent and the costs incurred by SITA SC (or the applicable SITA Group
Company) and Equant and declared into JV cost sharing in effecting such
Transfers in calendar year 2000 as multiplied by [*]. The Parties will mutually agree whether each Party’s
other internal costs should be handled in this fashion or borne solely by
such Party. Neither Party, shall be responsible to reimburse any costs
or expenses of the other Party, unless such costs or expenses have been
included in an agreed budget or have been approved in advance in writing
by the other Party. For the avoidance of doubt, this Clause 4.7 shall
not apply to any costs which are Restructuring Costs, which are covered
elsewhere in this Agreement.
	 
	5.	 	
ACCESS TO THE GLOBAL NETWORK
	 
	5.1	 	
Background

	 	 	 
	(a)	 	
In all Countries, prior to the Network Transfer in each
Country, SITA SC (or the applicable SITA Group Company) will
continue to operate as the In-Country Network operator, including
controlling, operating, administering and maintaining the ICNOs in
such Countries and will do so in accordance with the P&I provided by
Equant, as updated from time to time. For the avoidance of doubt,
P&I shall not apply to SITA Specific Activities.
	 
	(b)	 	
ICNOs will have access to the Network in accordance with the
Network Access Agreement agreed between the Parties and set forth in
Schedule G to this Agreement.
	 
	(c)	 	
A Country-specific version of the Network Access Agreement
may be executed by the Parties in respect of a particular Country,
which version may include mutually agreed changes as advisable to
conform with local law or custom. Notwithstanding anything to the
contrary in this Agreement or a Country-specific version of the
Network Access Agreement, the Parties agree that a Country-specific
version of the Network Access Agreement may not create any
obligations or liabilities on the part of either Party (including,
as applicable, a SITA Group Company) that are in addition to or
different from the obligations and liabilities of such Party as
specified in this Agreement unless the Parties execute
simultaneously with the execution of such a Country-specific version
of the Network Access Agreement a separate written amendment to this
Agreement that specifically states the ways in which this Agreement
is being amended with respect to such Country-specific version of
the Network Access Agreement. The modifications made to this
Agreement by any such amendment shall be effective only with respect
to the Country-specific version of the Network Access Agreement to
which it relates. The Parties expressly agree that, unless such an
amendment specifically provides otherwise, all Claims by a Party
against the other Party (including, in either case, the applicable
SITA Group Company) under a Country-specific version of the Network
Access Agreement will be brought under this Agreement and will be
subject to all applicable terms and conditions of this Agreement
(including as applicable limitations and exclusions of liability,
indemnification procedures, dispute resolution processes and
applicable law).

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
14	 	Dated: 30 November 2001

 

 

	 	 	 
	5.2	 	
Provision of P&I

	 	 	 
	(a)	 	
Equant will provide P&I to SITA SC as reasonably necessary so
as to enable the orderly functioning of Network Operations and the
seamless operation of the Network in accordance with the Network
Access Agreement, as well as to enable SITA SC to perform its
obligations with respect to the ICNOs. ICNOs will continue applying
the policies and procedures existing under the JV Agreement
immediately prior to the Effective Date, which policies and
procedures will form the initial P&I and which will be updated as
Equant deems appropriate from time to time.
	 
	(b)	 	
If Equant has not provided P&I to address a specific
circumstance, then:

	 	 	 
	(i)	 	Until such time as the specific P&I is provided
to address specific circumstances the Network Staff may
exercise their reasonable judgement under the circumstances,
consistent with their delegations of authority and
responsibilities and other existing P&I including, if
applicable, to request that Equant promptly issues appropriate
P&I should the need arise; and
	 
	(ii)	 	SITA SC will not be responsible for such actions
of Network Staff provided that non-Network Staff of SITA SC or
its Affiliates do not issue P&I or otherwise become involved
in resolving the issue (except for referring any such
inquiries from Network Staff to Equant).

	 	 	 
	(c)	 	
All Network Staff will be required to sign a nondisclosure
agreement covering Equant’s Confidential Information in a form
designated by Equant. SITA SC (or the applicable SITA Group
Company) will not disclose or use any Confidential Information
disclosed by Network Staff in violation of such nondisclosure
agreement. Furthermore, all Network Staff will be required to sign
a non-disclosure agreement covering Confidential Information of SITA
SC (or the applicable SITA Group Company) in a form designated by
SITA SC (or the applicable SITA Group Company), which form will not
prevent Network Staff from disclosing Confidential Information to
Equant necessary to perform its responsibilities under this
Agreement. Equant will not disclose or use in any Confidential
Information disclosed by Network Staff in violation of such
nondisclosure agreement.
	 
	(d)	 	
Equant will indemnify, defend and hold harmless SITA SC
(and/or the applicable SITA Group Company) for any Losses incurred
by SITA SC (and/or the applicable SITA Group Company) to the extent
due to (i) SITA SC’s (and/or the applicable SITA Group Company’s)
following of the P&I provided by Equant, or (ii) actions by Network
Staff pursuant to and in accordance with Clause 5.2(b) and/or the
Network Access Agreement.

	 	 	 
	5.3	 	
SITA Instructions not to Follow P&I
	 
	 	 	
SITA SC non-Network Staff managers will not in any way instruct or inform
Network Staff not to follow any Equant P&I without providing prior
written notice of such instruction to Equant in advance of providing such
instruction to any Network Staff, in which case Equant will be entitled
to seek compliance with the P&I as provided in Clause 5.4 below as if a
Senior Member had refused to follow such P&I.
	 
	5.4	 	
Senior Member’s Failure to Follow P&I

	 	 	 
	(a)	 	
If Equant provides P&I to a Senior Member in a Country and
the Senior Member refuses to carry out the P&I after being directed
again by Equant to do so, or if SITA SC gives Network Staff an
instruction not to follow any P&I (as addressed by Clause 5.3
above), an Equant senior manager will (if Equant wishes to enforce
the P&I)

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
15	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
notify SITA SC in writing requesting that SITA SC issue written
instructions to such Senior Member instructing such Senior Member
to follow such P&I (such written instructions being referred to as
the “Instruction Letter”), as follows. Equant will send any such
request to SITA SC’s head of ICNOs world wide by electronic mail or
facsimile, in either case with receipt confirmed by telephone and a
copy sent to the SITA SC General Counsel. Equant’s written request
shall include (i) a description of the relevant circumstances as
known to Equant, (ii) a copy of the P&I not followed, if any, and,
any other relevant P&I, (iii) a copy of written instructions Equant
may have already given to the Senior Member to follow such P&I, if
any, and (iv) the proposed text of the Instruction Letter Equant
desires to be sent by SITA SC to such Senior Member.
	 

	(b)	 	
Within five (5) Business Days following SITA SC’s receipt of
Equant’s notice (or two (2) Business Days if Equant reasonably
believes and designates in its notice that the issue is urgent )
(the “Original Due Date”), SITA SC’s head of ICNOs world wide will
either send the Instruction Letter (by electronic mail or facsimile,
in either case with receipt confirmed by telephone) to such Senior
Member (with a copy to the Equant requestor sent by the same means)
or, if SITA SC reasonably believes that the P&I is reasonably likely
to:

	 	 	 
	(i)	 	
violate, conflict with or be inconsistent with applicable law,
	 

	(ii)	 	
be inconsistent with Clause 6.5,
	 

	(iii)	 	
have a significant adverse impact on SITA’s
staff in the applicable Country(ies) other than Network Staff,
	 

	(iv)	 	
adversely affect SITA SC’s (or the applicable
SITA Group Companies’) legal or statutory responsibilities, or
	 

	(v)	 	
have a significant adverse impact on services to
the Air Transport Community

	 	 	 
	 	 	
SITA SC will notify the Equant requestor in writing (by electronic
mail or facsimile, in each case, with receipt confirmed by
telephone and with a copy sent to the head of Equant’s Network
operations) (the “Escalation Notice”) by the Original Due Date
specifying the reasons(s) why, based on the information that it has
been able to obtain by the Original Due Date, it believes such is
the case. With respect to the concerns, if any, that SITA SC may
have that any of Clause 5.4(b)(i), 5.4(b)(ii), 5.4(b)(iii),
5.4(b)(iv) or 5.4(b)(v) applies to matters covered in the proposed
Instruction Letter, SITA SC shall have the right within such five
(5) or two (2) Business Day period (as applicable) to meet in
person or by telephone with the head of Equant’s Network operations
to substantively discuss such concerns and for him to promptly
inform SITA SC whether or not he agrees.
	 

	(c)	 	
If the head of Equant’s Network operations disagrees with
SITA SC, and SITA SC has sent an Escalation Notice by the Original
Due Date, the dispute will be escalated to the Executive Committee
(or, in the alternative if the Parties so mutually agree, to a
meeting of the Parties’ Chief Executive Officers except in relation
to items in Clauses 5.4(b)(iv) and 5.4(b)(v)); provided, however,
that in relation to Clause 5.4(b)(iv) or 5.4(b)(v), such meeting
will take place within two (2) or five (5) Business Days (depending
on whether the matter was designated as urgent in Equant’s initial
notice to SITA SC) following SITA SC’s discussion with Equant’s head
of Network Operations pursuant to Clause 5.4(b) or following the
Original Due Date if SITA SC does not request a meeting with the
head of Equant’s Network operations. If the Executive Committee (or
the Parties’ Chief Executive Officers, as applicable) does not
decide the dispute in favour of SITA SC at such meeting within such
two (2) or

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
16	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
five (5) Business Day period, the dispute as to whether SITA SC
should send an Instruction Letter will be deemed to be decided in
favour of Equant, such decision being final solely with respect to
Clause 5.4(b)(iv) or 5.4(b)(v) above.
	 

	(d)	 	
If SITA SC fails to send an Instruction Letter or an
Escalation Notice by the Original Due Date, then Clauses 5.4(d)(i),
5.4(d)(ii), and 5.4(d)(iii) below will apply from the Original Due
Date until SITA SC does so:

	 	 	 
	(i)	 	Equant will be excused from Service Level
Defaults and any payments of Service Credits (as defined in
the Services Agreement) applicable to the Country or Countries
in which the disputed P&I was to be implemented by such Senior
Member.
	 
	(ii)	 	SITA SC will not be entitled to reimbursement
under Clause 15 for any SITA ICNO Costs to the extent they
would not have been incurred had such Senior Member
implemented the P&I on the Original Due Date; and
	 
	(iii)	 	SITA SC will reimburse Equant for any Losses
Equant incurs due to the P&I not being implemented as of the
Original Due Date to the extent that such Losses would not
have been incurred if the P&I had been implemented as of the
Original Due Date (but excluding costs Equant incurs in
disputing under Clause 5.4(c) above whether such P&I should be
implemented).

	 	 	 
	(e)	 	
If the dispute is escalated pursuant to Clause 5.4(c) and is
not resolved in SITA SC’s favour, then SITA SC shall send the
Instruction Letter within two (2) Business Days following the date
on which the Executive Committee (or the Parties’ Chief Executive
Officers, as applicable) decides the dispute in favour of Equant
(the “Revised Due Date”). If SITA SC fails to send the Instruction
Letter within such two (2) Business Day period, then:

	 	 	 
	(i)	 	(A) Clause 5.4(d)(i) above will apply from the
Revised Due Date until the date on which SITA SC sends the
Instruction Letter, and (B) Equant will be excused from any
Service Level Defaults and any payments of Service Credits (as
defined in the Services Agreement) that relate to the period
between the Original Due Date and the Revised Due Date to the
extent caused by the P&I not being implemented as of the
Original Due Date; and
	 
	(ii)	 	Clauses 5.4(d)(ii) and 5.4(d)(iii) above will
apply from the Original Due Date until the date on which SITA
SC sends the Instruction Letter

	 	 	 
	(f)	 	
If the Executive Committee (or the Parties’ Chief Executive
Officers, as applicable) agrees with SITA SC’s position within the
applicable two (2) or five (5) Business Days, as applicable under
Clause 5.4(c), or if Equant at any time comes to agree with SITA
SC’s position, then Clauses 5.4(d)(i), 5.4(d)(ii) and 5.4(d)(iii)
above will not apply, and SITA SC will not have any obligation or
liability in respect of the relevant initial Equant notice sent
pursuant to Clause 5.4(a).

	 	 	 
	6.	 	
REGULATORY PRINCIPLES
	 
	6.1	 	
The Parties will co-operate in respect of their regulatory affairs,
including in the co-ordination of their approaches to regulatory
authorities and equivalent bodies, so as to minimise the risk that one
Party’s position has an adverse effect on the other Party.
	 
	6.2	 	
SITA SC (or the applicable SITA Group Company) will provide commercially
reasonable efforts to assist Equant to obtain any necessary operating
authority. If the regulatory position of SITA SC (or the applicable SITA
Group Company) requires amendment (including a licence transfer or
surrender) for Equant to obtain its required regulatory approval, SITA SC

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
17	 	Dated: 30 November 2001

 

 

	 	 	 
	 
	 	 	
(or the applicable SITA Group Company) will make the necessary
change, provided that, following the change, SITA SC (or the
applicable SITA Group Company) can provide Network Services to
the Air Transport Community on a basis no less favourable than as
of the Effective Date or on an alternative basis which results in
no noticeable (i) increase in costs, or (ii) deterioration of
Network Services service levels to applicable Air Transport
Community customers of SITA SC (or the applicable SITA Group
Company). Equant will use commercially reasonable efforts to
assist and support SITA SC (or the applicable SITA Group Company)
in carrying out the lawful actions needed to obtain such a
revised regulatory position.
	 
	6.3	 	
Until the Network Transfer in a Country:

	 	 	 
	(a)	 	
SITA SC (or the applicable SITA Group Company) will take
commercially reasonable actions to maintain its licence or other
authority;
	 
	(b)	 	
SITA SC (or the applicable SITA Group Company) will use
commercially reasonable efforts to connect Equant’s customers under
the licence or other authority of SITA SC (or the applicable SITA
Group Company) and Equant will provide commercially reasonable
assistance to achieve such objective;
	 
	(c)	 	
Each Party shall keep the other Party informed of its
operating rights and authorities;
	 
	(d)	 	
P&I issued by Equant will take commercially reasonable
account of the extent of SITA SC’s (or the applicable SITA Group
Company’s) licence or other authority; and
	 
	(e)	 	
SITA SC and Equant will co-operate to achieve the prompt
disconnection of those connections or the barring of any traffic
which a regulatory authority or equivalent body informs SITA SC (or
the applicable SITA Group Company) are unauthorised and should be so
disconnected or barred or when the Parties mutually agree that it is
advisable to do so.

	 	 	 
	6.4	 	
Each Party will co-operate reasonably with the other Party to support the
implementation of the other Party’s proposed regulatory actions, where
such action does not have an adverse effect on such Party.
	 
	6.5	 	
Neither Party shall take any action that could reasonably be expected to
affect adversely the regulatory license or other authority of the other
Party without first discussing and agreeing the most appropriate solution
to meet the needs of both Parties.

	 	 	 
	7.	 	
IT TRANSITION
	 
	7.1	 	
Goals and Objectives
	 
	 	 	
The goals and objectives of the IT Transition are to:

	 	 	 
	(a)	 	
achieve full separation of SITA SC’s and Equant’s information
technology (“IT”) infrastructures, data and system applications,
while maintaining, where necessary, the compatibility of their
processes and data interfaces;
	 
	(b)	 	
enable SITA SC and Equant to establish separate and distinct
internal IT infrastructure and application services and to set for
the Parties agreements for the supply of IT Services between the
Parties during the IT Transition Period;

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
18	 	Dated: 30 November 2001

 

 

	 	 	 
	(c)	 	
achieve a separation of the Parties’ IT systems and processes
as soon as reasonably practicable for both Parties, but in no event
later than the end of the IT Transition Period;
	 
	(d)	 	
achieve a planned, orderly and commercially reasonable
transition in a way that recognises

	 	 	 
	(i)	 	the impact of the inter-dependencies of the
Parties’ system on the global processes and proposed
transition;
	 
	(ii)	 	the practical processes that must be addressed
and a critical path for addressing such processes; and

	 	 	 
	(e)	 	
maintain commercially reasonable continuity and security of
IT Services during the transition to their subsequent replacements
for both Parties during the IT Transition Period as the Parties’
relationship evolves to that of two distinct commercial entities.

	 	 	 
	7.2	 	
Operation

	 	 	 
	(a)	 	
An IT Joint Task Force (the “IT JTF”) comprising senior IT
representatives of the Parties with outside advisors to be consulted
as applicable will be created to prepare a plan for the IT
Transition (the “IT Transition Plan”). The IT Joint Task Force will
develop, modify, update and execute the IT Transition Plan. The
initial high-level IT Transition Plan shall be agreed and completed
by the Parties within two (2) months following the Effective Date
and will thereafter be updated as applicable.
	 
	(b)	 	
The IT JTF shall, as part of developing the IT Transition
Plan, develop and implement a plan to perform such due diligence as
will provide both Parties with the information required to evaluate
and form the IT Transition Plan and to prepare any initial budgets.
	 
	(c)	 	
The IT Transition Plan will specify the migration path from
the current shared inter-dependent infrastructures and systems to
separate and distinct IT environments. It will describe the
activities, required resources, responsibilities and costs
associated with the IT Transition and proposed timing to achieve the
separation in accordance with Clause 7.1. The IT Transition Plan
may, exceptionally, specify actions beyond the IT Transition Period
as mutually agreed.
	 
	(d)	 	
The IT Transition will be completed within twenty-one (21)
months after the Effective Date (the “IT Transition Period”).
	 
	(e)	 	
An IT steering committee involving the Chief Information
Officers of Equant and SITA SC will oversee the IT Joint Task Force,
review the execution of the IT Transition Plan on a monthly basis, and
monitor the performance and delivery of the IT Services in
accordance with the IT Transition Guidelines.

	 	 	 
	7.3	 	
IT Services

	 	 	 
	(a)	 	
Until the date of migration of each component of the Equant
IT Services in accordance with the IT Transition Plan, Equant will
continue to provide the SITA Group the same IT support services (the
“Equant IT Services”) as the SITA Group received through the Joint
Venture as of the Effective Date, including (except as otherwise
mutually agreed) the same types of services, in the same volumes
(including the same reasonable level of informal collaboration and
the same level of business-as-usual changes, such as desktop
moves/adds/changes, other equipment installations/removals, and
normal levels of system support) and at the same locations

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
19	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
as such services were provided to SITA SC as of the Effective Date
(the “Baseline Equant IT Services”). The Equant IT Services are
more specifically described in the Equant IT Services Description
set forth in Schedule E to this Agreement and include:

	 	 	 
	(i)	 	
Infrastructure Services, covering:

	 	 	 
	(A)	 	
Corporate Network Services: maintenance of corporate network access services;
	 
	(B)	 	
User Services: local management of
user desktop and laptop machines, servers and
telecommunication facilities other than PBXs;
	 
	(C)	 	
GroupWare Services: management of
the global Lotus Notes infrastructure; and
	 
	(D)	 	
Corporate Voice Network and
audio/video conferencing services;

	 	 	 
	(ii)	 	
Application Services: maintenance and support of
the SITA SC Business Application Systems; and
	 
	(iii)	 	
Operations Services: installation and operation
of SITA SC application servers, mainframe job scheduling and
monitoring.

	 	 	 
	(b)	 	
Until the date of migration of each component of the SITA IT
Services in accordance with the IT Transition Plan, SITA SC will
continue to provide to the Equant Group the same IT support services
(the “SITA IT Services”) as the Equant Group received through SITA
SC as of the Effective Date, including (except as otherwise mutually
agreed) the same types of services, in the same volumes and at the
same locations as such services were provided to the Equant Group as
of the Effective Date (the “Baseline SITA IT Services”). The SITA
IT Services are more specifically described in the SITA IT Services
Description attached as Schedule E to this Agreement and include:

	 	 	 
	(i)	 	Server hosting services;
	 
	(ii)	 	Mainframe application hosting services; and
	 
	(Iii)	 	User Services.

	 	 	 
	7.4	 	
IT Transition Period
	 
	 	 	
The IT Services other than interfaces and those services generally
provided to other customers (such as WAN/intranet connect and corporate
voice services) will cease to be provided under this Agreement as soon as
reasonably practicable and as set forth in the IT Transition Plan and in
no event later than the end of the IT Transition Period. However, it is
understood that the Parties may mutually agree (although they are not
obligated to do so) to continue certain IT Services under one or more
separate commercial agreements. For any IT Services which both Parties
agree to continue under a separate agreement, if either SITA SC or Equant
intends to materially change any aspect of the IT Services provided to
the other Party under this Agreement (including terminating such IT
Services) after the completion of the IT Transition Period and such
change could require some activity before the end of the IT Transition
Period on the part of the other Party in advance of such change, the
relevant Party will provide notice of such intention to the other Party
promptly upon deciding on the course of action and the Parties will agree
on a plan for such change.
	 
	7.5	 	
Requests for Additional Services or Extensions
	 
	 	 	
Any requests from either Party for any additional IT Services or
extension of or changes to the IT Services then being provided by the
other Party (e.g., including service enhancements)

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
20	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
will be evaluated by the other Party on a case-by-case basis and, at the
other Party’s sole and absolute discretion, the other Party may choose to
provide such additional services on terms as mutually agreed.
	 
	7.6	 	
Interfaces
	 
	 	 	
Schedule E (IT Services Description) specifies the system interfaces to
be established and maintained between the Parties’ information systems
during the IT Transition Period. In the event that during the IT
Transition Period any additional interface is identified as being
required, the Parties will agree on the specifications and development
schedule for such interface and the charge to the Party whose action
(e.g., an upgrade or change in Software or Hardware by that Party or a
specific request by that Party) is responsible for initiating the need
for such development, except where such development is specified in the
IT Transition Plan as being required as part of the IT Transition. The
Party developing an interface will design such interface substantially in
accordance with such specifications.
	 
	7.7	 	
Knowledge Transfer
	 
	 	 	
Equant agrees to transfer to SITA SC or an agreed third party any
relevant knowledge identified and agreed by the IT Joint Task Force.
Such knowledge transfer will take place by each Party’s respective SPOC
or otherwise according to a process agreed and monitored by the IT Joint
Task Force.
	 
	7.8	 	
Access to Data
	 
	 	 	
The IT Services Description specifies the applications and data to which
each Party will be allowed access, during the IT Transition Period, for
as long as such Party is receiving the relevant IT Services, including
the level of and any other restrictions on such access. In some cases,
the Parties have agreed to continued access to certain data after the IT
Transition Period, as specified in each IT Services Description. Each
Party shall have the right to restrict the access of the other Party to
any data or application which is not specified in the IT Services
Description and which the other Party does not reasonably have a need to
access in performing under this Agreement.
	 
	7.9	 	
Future Changes
	 
	 	 	
Both during and after the IT Transition Period, each Party will inform
the other Party reasonably in advance of any planned change in the format
of any system interface that may have a material impact on the other
Party’s ability to receive the IT Services, including (i) relevant
information reasonably known to that Party regarding the potential impact
of such change on the other Party’s systems and processes, and (ii)
reasonable information and answers in support of such other Party’s
efforts to determine the impact of such change on its own systems and
processes. In the event of such a change, the Parties will agree on
plans for the implementation and phasing of such change consistent with
the implementation schedule of the underlying systems or applications
changes, and any changes to interfaces will be handled pursuant to Clause
15 of Schedule E.
	 
	7.10	 	
Existing EIS Contracts
	 
	 	 	
The terms and conditions of any existing commercial agreements between
SITA SC and Equant Integration Services (EIS) are outside the scope of
this Agreement, with the sole exception that Equant will provide a single
point of contact (“SPOC”) for both the Equant IT Services and such
contracts between SITA SC and EIS.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
21	 	Dated: 30 November 2001

 

 

	 	 	 
	7.11	 	IT Assets
	 
	 	 	Restructuring Costs shall also include the costs of Equant purchasing for
or transferring to SITA SC (or the applicable SITA Group Company) those
IT assets required to be acquired in order to implement the IT Transition
Plan, including the required equipment, incidental costs of purchase and
the professional services reasonably required in order to implement such
new computer and telecommunications equipment and software (whether such
services are performed by Equant itself or through a third party).
	 
	7.12	 	Third Party Contracts

	 	 	 
	(a)	 	
SITA SC and Equant will, as part of the due diligence
specified in Clause 7.2(b), prepare an inventory of third party
software licenses, any other agreements relating to intellectual
property rights and third party service contracts existing as of the
Effective Date (the “Third Party IT Agreements”). The inventory
will describe, with respect to each Third Party IT Agreement, as
much as possible of the following: the parties to the agreement; a
description of the software or services provided; scope of use
(including details of those entities which are entitled to the use
of the software or receipt of the services in question) and/or any
restrictions on use; any remaining or recurring fees that have yet
to come due under the agreement; the length of the remainder of the
term of the agreement; and any restrictions on assignment specified
in the agreement, together with such other information as SITA SC or
Equant (as applicable) shall reasonably request from time to time.
	 
	(b)	 	
SITA SC and Equant will identify those Third Party IT
Agreements whose software or services are used by both Parties. If
the Parties mutually agree that there is some benefit or advantage
for the Parties to continue to share a Third Party IT Agreement, the
Parties will agree on how best to do so, as part of the IT
Transition Plan work of the IT JTF. Where applicable, the Parties
will seek any necessary third party consents in order to allow the
Parties to continue sharing Third Party IT Agreements.
	 
	(c)	 	
SITA SC will, as soon as reasonably practicable following the
Effective Date, assume management and responsibility for any Third
Party IT Agreements for which, as between Equant and SITA SC, SITA
SC is the sole user. If Equant is the party to any such Third Party
IT Agreements, subject to any necessary vendor approval Equant will
promptly following the Effective Date assign to SITA SC such Third
Party IT Agreements. Both Parties will promptly take any
commercially reasonable steps required in order to achieve the
assignment of such Third Party IT Agreements to SITA SC.
	 
	(d)	 	
Equant will, as soon as reasonably practicable following the
Effective Date, assume management and responsibility for any Third
Party IT Agreements for which, as between Equant and SITA SC, Equant
is the sole user. If SITA SC is the party to any such Third Party
IT Agreements, subject to any necessary vendor approval SITA SC will
promptly following the Effective Date assign to Equant such Third
Party IT Agreements. Both Parties will promptly take any
commercially reasonable steps required in order to achieve the
assignment of such Third Party IT Agreements to Equant.

	 	 	 
	8.	 	
ASSETS TRANSITION
	 
	 	 	
The Parties will apply the EAFA as set out in Schedule F, which is hereby
incorporated by reference into this Agreement. All Network Assets,
together with applicable Intangible Network Resources and all real
property and buildings and improvements thereon in respect

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
22	 	Dated: 30 November 2001

 

 

	 
	
of Network Space, acquired on or after the Effective Date will be either
purchased directly by Equant or purchased by SITA under the EAFA.

	 	 	 
	9.	 	
PURCHASING AND PROCUREMENT TRANSITION
	 
	9.1	 	
Purchasing and Procurement to Support SITA ICNOs

	 	 	 
	(a)	 	
Equant will provide P&I to relevant Network Staff related to
purchasing and procurement as required to support ICNOs. Purchasing
and procurement costs incurred by SITA SC (or the applicable SITA
Group Companies) in respect of supporting ICNO purchasing and
procurement shall be deemed to be SITA ICNO Costs.
	 
	(b)	 	
Equant will provide purchasing and procurement support to the
ICNOs at Equant’s cost.

	 	 	 
	9.2	 	
Top Suppliers
	 
	 	 	
This Clause 9.2 will apply to Equant’s top five (5) Network equipment
suppliers from time to time during the Term. As of the Effective Date,
the top five (5) such suppliers are [*].

	 	 	 
	(a)	 	
In negotiations with such top suppliers, Equant will use
commercially reasonable efforts to negotiate with such suppliers,
terms and conditions in its relevant contracts so as to enable SITA
SC (or the applicable SITA Group Company) to acquire, during the
Term, Network equipment and related products and services (e.g.,
software, installation, maintenance, training) on the same terms and
conditions (including benefits of discounts) as Equant has for
similar purchases under such contracts, including providing that
Equant’s and SITA SC’s (or the applicable SITA Group Company’s)
purchases under such contracts will both count toward any applicable
volume discounts.
	 
	(b)	 	
In such negotiations, the objective shall be to enable SITA
SC (or the applicable SITA Group Company) to procure Network
equipment and related services from any such supplier directly. If
such terms are not available on commercially reasonable terms, then
Equant shall discuss and agree with SITA SC possible alternative
procedures to be negotiated with the relevant supplier.
	 
	(c)	 	
The Parties shall share any additional credit or rebate
arising out of combining SITA SC’s (or the applicable SITA Group
Company’s) purchasing with Equant’s purchasing proportional to
each’s contribution to such additional credit or rebate, treating
SITA SC’s (or the applicable SITA Group Company’s) purchases as the
‘top slice’ of total purchases.
	 
	(d)	 	
If obtaining such rights or administering such alternate
procedures involves extra work for Equant, then Equant will notify
SITA SC of the incremental costs of such work and, if SITA SC, in
its sole and absolute discretion, agrees to pay such incremental
cost Equant will perform such work. For the avoidance of doubt, if
SITA SC elects not to participate in joint purchasing or procurement
with respect to such supplier, SITA SC will not have a right to have
another Equant supplier substituted as a top five (5) Network
equipment supplier of Equant for the purposes of this Clause 9.2.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
23	 	Dated: 30 November 2001

 

 

	 	 	 
	(e)	 	
SITA SC will defend, indemnify and hold harmless Equant from
any Losses incurred by Equant to the extent due to SITA SC’s (or the
applicable SITA Group Company’s) dealings with any such supplier.
	 
	(f)	 	
Where and to the extent legally possible (including under the
terms and conditions of the relevant contract with a top supplier),
Equant will provide SITA SC with procurement related information,
including copies of the supplier agreements. If Equant is prevented
from providing such copies, Equant will provide such information as
is legally and contractually possible. Where and to the extent
legally possible (including under the terms and conditions of the
relevant contract ) with a top supplier), Equant and SITA SC will
keep each other informed of relevant information at regular
intervals to be agreed with respect to their respective aggregated
purchases under such supplier agreements, and the discounts received
and receivable (in each case including, with respect to SITA SC, the
purchases made and discounts received and receivable with respect to
the SITA Group Companies), and will provide each other with relevant
supporting documentation.
	 
	(g)	 	
Either Party may suggest to the other possible additional
suppliers where such cooperation might be mutually beneficial, and
the Parties may mutually agree, in each’s sole and absolute
discretion, to extend such cooperation in dealings with such
additional suppliers.

	 	 	 
	9.3	 	
Central Purchasing Support

	 	 	 
	(a)	 	
In addition to providing purchasing support for the ICNOs,
Equant will continue to provide central purchasing and procurement
support to assist SITA SC (or the applicable SITA Group Company) to
meet its requirements, during a transition period to last a maximum
of nine (9) months following the Effective Date.
	 
	(b)	 	
Such central purchasing and procurement support will be
provided on the same volumes and to the same quality of service as
at the Effective Date on the basis of [*]. If SITA SC (or the applicable SITA Group Company)
requires additional effort and Equant agrees to provide it, Equant
will advise SITA SC in advance of the extra resources required and,
if SITA wishes to proceed, SITA SC will pay for the incremental
effort at the same rate per FTE as in the immediately preceding
sentence. SITA SC will have the right to instruct Equant to stop
providing all central purchasing support at any time within such
transition period upon two (2) months notice.
	 
	(c)	 	
During such transition period, Equant and SITA SC (or the
applicable SITA Group Company) shall use commercially reasonable
efforts to achieve the transition by the end of such transition
period.

	 	 	 
	9.4	 	
Local Purchasing Support

	 	 	 
	(a)	 	
In addition to providing purchasing and procurement support
for the ICNOs, Equant will continue to provide local purchasing and
procurement support to SITA SC (or the applicable SITA Group
Company) to assist SITA SC (or the applicable SITA Group Company) to
meet its requirements, during a transition period to last a maximum
of nine (9) months.
	 
	(b)	 	
Such support will be provided on the same volumes and to the
same quality of service as at the Effective Date on the basis of
[*]. If SITA SC (or the
applicable SITA Group Company) requires additional effort and Equant
agrees to provide it, Equant will advise SITA SC in advance of the
extra

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
24	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
resources required and, if SITA SC wishes to proceed, SITA SC will
pay for the incremental effort at the same rate per FTE. SITA SC
will have the right to instruct Equant to stop providing all local
purchasing support at any time within such transition period upon
two (2) months notice.
	 
	(c)	 	
During such transition period, Equant and SITA SC (or the
applicable SITA Group Company) shall use commercially reasonable
efforts to achieve the transition by the end of such transition
period.

	 	 	 
	9.5	 	
GILDA System Support
	 
	 	 	
The central and local purchasing and procurement support referred to in
Clauses 9.3 and 9.4 will include Equant providing purchasing (including
data management) support for GILDA to the extent necessary for the
purposes of Clauses 9.3 and 9.4.
	 
	9.6	 	
Stock Management
	 
	 	 	
Equant and SITA SC (or the applicable SITA Group Company) will cooperate
in assessing the current stock management situation. If any costs must
be incurred to evaluate the situation, Equant will provide an estimate
such costs, and SITA SC will have the option to proceed or not.
	 
	9.7	 	
Authorisation

	 	 	 
	(a)	 	
In performing purchasing and procurement support under this
Clause 9, Equant shall be entitled to act on requisitions received
from SITA SC (or the applicable SITA Group Company) that contain
authorisation codes that are valid according to the information SITA
SC has provided Equant.
	 
	(b)	 	
SITA SC shall provide Equant with any necessary delegations
of authority in order to perform the purchasing and procurement
services under this Clause 9.

	 	 	 
	10.	 	
OTHER SUPPORT SERVICES TRANSITION
	 
	 	 	
This Clause 10 applies to support services and functions excluding those
(such as General Services, Purchasing and IT Services) for which this
Agreement expressly provides elsewhere for particular transition
arrangements. The Parties recognise that, at the Effective Date, their
support processes are in many instances inter-dependent and agree to
change such processes as soon as commercially reasonable to achieve full
separation or other alternative mutually beneficial arrangements with the
objective of achieving such changes as soon as reasonably practicable and
in no event later than the date nine (9) months following the Effective
Date. Pending such changes, the Parties will continue to support each
other’s reasonable business requirements on the same basis and at levels
equivalent to those undertaken at the Effective Date. Such support
services shall be provided at cost, except that no charge will be made by
Equant where the relevant costs are already included in the “cost base”
for Services provided under the Services Agreement.
	 
	11.	 	
WORKSHOPS
	 
	 	 	
Schedule I (Workshops) is hereby incorporated by reference into this
Agreement as if set forth in full herein.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
25	 	Dated: 30 November 2001

 

 

	 	 	 
	12.	 	
HUMAN RESOURCES
	 
	12.1	 	
Co-operation with Respect to Staff

	 	 	 
	(a)	 	
SITA SC (or the applicable SITA Group Company) may make
changes with respect to its HR Policies relating to non-Network
Staff that it reasonably believes will not materially affect Network
Staff (including costs associated with such Network Staff) upon
reasonable advance notice to Equant. Equant may make changes with
respect to its P&I relating to HR Policies relating to Network Staff
that it reasonably believes will not materially affect non-Network
Staff of SITA SC (or the applicable SITA Group Company) (including
costs associated with such non-Network Staff) upon reasonably
advance notice to SITA SC (or the applicable SITA Group Company).
If, upon the receipt of a notice as provided above, the Party
receiving the notice believes that the proposed change will
materially adversely Network Staff (in the case of Equant) or
non-Network Staff of SITA SC (in the case of SITA SC or the
applicable SITA Group Company), the receiving Party will promptly
notify the proposing Party in writing of the receiving Party’s
concerns, in which case the proposing Party will not implement the
proposed change(s) until the Parties agree on an approach or the
dispute has been resolved.
	 
	(b)	 	
With respect to any changes to HR Policies that could
reasonably be foreseen to affect both Network Staff and non-Network
Staff of SITA SC (or the applicable SITA Group Company) in a Country
(including the costs associated with such staff), the Parties will
co-operate and consult with each other and agree on any such changes
prior to making them.
	 
	(c)	 	
The Parties agree that the procedures of this Clause 12.1
shall not apply to Instruction Letters issued under Clause 5.4.

	 	 	 
	12.2	 	HR Matters

	 	 	 
	(a)	 	
Equant will provide HR Services as set out in Schedule H.
	 
	(b)	 	
Equant will provide for the continuity of SITA SC statutory
obligations and SITA-Specific activities performed by Network Staff
prior to the Effective Date, as the performance of such obligations
and activities may evolve from time to time through mutual agreement
of the Parties. The Parties may agree special procedures relating
to retention and similar matters from time to time that will apply
to individual Network Staff members as the Parties may designate by
mutual agreement from time to time (but shall not be obliged to do
so).
	 
	(c)	 	
In respect of Network Staff:

	 	 	 
	(i)	 	Equant P&I will cover HR policies to be followed
in respect of Network Staff, and Equant will inform SITA of
those HR actions required to implement such P&I;
	 
	(ii)	 	Through the HR Services Equant will advise and
assist SITA to implement such HR actions; and
	 
	(iii)	 	such HR actions will be implemented through the
seconded staff in accordance with Clause 2 of the HR Services
Arrangement.

	 	 	 
	(d)	 	
If SITA SC reasonably believes either that (i) Equant will or
has taken action with respect to HR policies on behalf of SITA SC
which does not comply with applicable statutory obligations or its
contractual obligations under the HR Arrangement, or that

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
26	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
(ii) Equant will or has taken action with respect to HR policies in
an unprofessional manner so as to jeopardise SITA SC’s image,
status and reputation as an employer, SITA SC will notify Equant in
writing of such belief. Such notice will be to sent to the
Equant’s vice president of human resources (or his designee) by
electronic mail or facsimile, in either case with receipt confirmed
by telephone and a copy sent to the head of Equant’s SITA Account
Team (or his designee). SITA SC’s written notice shall include (A)
a description of the relevant circumstances as known to SITA SC,
(B) a copy of supporting written material, if any, and (C) any
specific modifications to the action of which SITA SC is aware at
the time of the notice that SITA SC reasonably believes would
resolve any of SITA SC’s concern with the action.
	 	 	 
	 	(e)	
Within five (5) Business Days (or two (2) Business Days if
SITA SC reasonably believes and designates in its notice that the
matter is urgent) following Equant’s receipt of SITA SC’s notice
pursuant to Clause 12.2(d), either:

	 	 	 	 
	 	(i)	 	
if Equant agrees that the action falls within one
of the categories specified in Clause 12.2(d), Equant shall,
within such five (5) or two (2) Business Day period, as
applicable, (A) notify the SITA SC requestor in writing (by
electronic mail or facsimile, in each case, with receipt
confirmed by telephone and with a copy sent to the SITA SC
General Counsel) that such is the case, and as promptly as
possible (B) either desist from and/or rectify the
consequences of such action or, if the consequences of such
action is incapable of such cure, develop and begin to
implement a plan reasonably designed to mitigate the effects
of the action and, where applicable, prevent such action from
recurring; or
	 	 	 	 
	 	(ii)	 	
if Equant does not agree that the action falls
within one of the categories specified in Clause 12.2(d),
Equant shall notify the SITA SC requestor in writing (by
electronic mail or facsimile, in each case, with receipt
confirmed by telephone and with a copy sent to the SITA SC
General Counsel) specifying the reasons(s) why, based on the
information that it has been able to obtain, within such five
(5) or two (2) Business Day period, as applicable, it believes
such is not the case. With respect to SITA SC’s belief that
the action falls within any of the categories specified in
Clause 12.2(d), Equant shall have the right, within such five
(5) or two (2) Business Day period, as applicable, before
responding to meet in person or by telephone with the head of
SITA SC’s human resources department to discuss SITA SC’s
concerns and shall notify SITA SC that it is so doing.

	 	 	 
	 	(f)	
If Equant does not agree with SITA SC’s categorisation of the
action and sends a notice under Clause 12.2(e)(ii) above, the
dispute will be escalated, within such five (5) or two (2) Business
Day period, as applicable, upon either Party’s request to a meeting
of the Executive Committee (or, in the alternative if the Parties so
mutually agree, to a meeting of the Parties’ Chief Executive
Officers). For extreme emergencies, the Parties agree to accelerate
the timing of the dispute resolution process set forth above as
appropriate under the circumstances. If it is determined that the
action falls under one of the headings and Equant does not promptly
cure or begin to implement diligently a plan to cure, SITA SC will
have the right to intervene with respect to those issues SITA SC
raised under Clause 12.2(d).
	 	 	 
	 	(g)	
Members of the Network Staff will maintain their right to
apply for jobs within other parts of SITA SC or its Affiliates at
any time. SITA SC agrees, however, that it will not actively
solicit any individual member of the Network Staff or any Equant
staff for any other position without Equant’s prior written
approval, to which request for approval Equant shall give reasonable
consideration but may grant or deny in its sole discretion.
Notwithstanding the preceding sentence, SITA SC shall not be
prohibited

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
27	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
from engaging in internal and external job postings or otherwise
publicising job openings that are not targeted at any one or more
particular individual members of Network Staff. Equant agrees that
it will not actively solicit any individual member of the
non-Network Staff for any other position without SITA SC’s prior
written approval, to which request for approval SITA SC shall give
reasonable consideration but may grant or deny in its sole and
absolute discretion. Notwithstanding the preceding sentence,
Equant shall not be prohibited from engaging in internal and
external job postings or otherwise publicising job openings that
are not targeted at any one or more particular individual members
of non-Network SITA SC staff.
	 	 	 
	 	(h)	
SITA SC shall not withdraw any member of the Network Staff
from their then current position without first consulting with
Equant and obtaining Equant’s approval, to which SITA SC request
Equant shall give reasonable consideration but may grant or deny in
its sole and absolute discretion. Any agreed transfer will be
conducted in accordance with a mutually agreed plan to transfer the
relevant individual’s responsibilities to a successor.
	 	 	 
	 	(i)	
Where, pursuant to P&I, Equant advises SITA SC to make any
Network Staff redundant, Equant will provide reasonable advanced
notice so as to enable SITA SC to, in its sole and absolute
discretion, re-deploy such employees to non-Network SITA SC
activities.
	 	 	 
	 	(j)	
If SITA SC’s compliance with Equant P&I relating to Network
Staff leads to such Network Staff being made redundant, Equant will
reimburse SITA SC’s redundancy costs, in accordance with agreed
redundancy policies. However, if SITA SC redeploys any such
employees Equant will not be responsible for any redundancy costs
associated with such staff.
	 	 	 
	 	(k)	
Where the Parties deem it advisable or necessary, a
Country-specific agreement based on Schedule H may be developed and
executed by the Parties in respect of a particular Country. The
Country-specific agreement will set forth the terms and conditions
of the HR Services pertinent to such Country and will only include
changes from the terms and conditions of Schedule H as are advisable
to conform with local law or custom as mutually agreed.
Notwithstanding anything to the contrary in this Agreement or a
Country-specific HR Services agreement, the Parties agree that a
Country-specific HR Services agreement may not create any
obligations or liabilities on the part of either Party (including,
as applicable, a SITA Group Company) that are in addition to or
different from the obligations and liabilities of such Party as
specified in this Agreement unless the Parties execute
simultaneously with the execution of such a Country-specific HR
Services agreement a separate written amendment to this Agreement
that specifically states the ways in which this Agreement is being
amended with respect to such Country-specific HR Services agreement.
The modifications made to this Agreement by any such amendment
shall be effective only with respect to the Country-specific HR
Services agreement to which it relates. The Parties expressly agree
that, unless such an amendment specifically provides otherwise, all
Claims by a Party against the other Party (including, in either
case, the applicable SITA Group Company) under a Country-specific HR
Services agreement will be brought under this Agreement and will be
subject to all applicable terms and conditions of this Agreement
(including as applicable limitations and exclusions of liability,
indemnification procedures, dispute resolution processes and
applicable law).

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
28	 	Dated: 30 November 2001

 

 

	 	 	 
	12.3	 	
Indemnification for HR Claims

	 	 	 
	 	(a)	
Equant will indemnify, defend and hold harmless SITA SC (or the applicable SITA Group Company)
against any Losses incurred by SITA SC to the extent due to any acts
or omissions of Equant in relation to the HR Services which Equant
provides under this Agreement, including:

	 	 	 	 
	 	(i)	 	
acts or omissions with respect to statutory
bodies or governmental authorities; and
	 	 	 	 
	 	(ii)	 	
claims brought by Network Staff to the extent
based on acts or omissions that occurred after the Effective
Date.

	 	 	 
	 	(b)	
Any Losses arising from claims brought by Network Staff
against a Party to the extent due to acts or omissions that occurred
after 2 October 1995 but prior to the Effective Date, will be cost
shared by the Parties according to the percentages applicable
pursuant to the JV Agreement at the time of the acts or omissions
giving rise to the claim.
	 	 	 
	 	(c)	
SITA SC will indemnify, defend and hold harmless Equant from
Losses incurred by Equant to the extent due to claims brought
against Equant by Network Staff for acts or omissions that occurred
prior to 2 October 1995.

	 	 	 	 	 
	12.4	 	Claims brought by Transferred Network Staff
	 	 	 	 	 
	 	 	(a)	 	Any Losses arising from claims brought by transferred Network
Staff to the extent due to acts or omissions of either Party that
occurred after 2 October 1995 but prior to the Effective Date will
be shared equally by the Parties.
	 
	 	 	
(b)
	 	SITA SC will indemnify, defend and hold harmless Equant from
any Losses incurred by Equant arising from claims brought by
transferred Network Staff to the extent due to acts or omissions of
SITA SC that occurred prior to 2 October 1995.
	 
	 	 	
(c)
	 	Equant will indemnify, defend and hold harmless SITA SC for
any Losses incurred by SITA SC arising from claims brought by
transferred Network Staff to the extent due to acts or omissions of
Equant that occur after the Effective Date.

	 	 	 
	13.	
PREMISES MATTERS
	 	 	 
	13.1	
General

	 	 	 	 
	 	(a)	 	
As of the Effective Date, the Parties will co-operate in
respect of their use of Space as set forth in this Clause 13.1.
	 	 	 	 
	 	(b)	 	
As soon as reasonably practicable after the Effective Date,
the Parties will mutually develop and agree the initial version of
the Master Premises Plan for the use by Equant and/or SITA SC. As
part of developing the Master Premises Plan, the Parties will
assemble a repository of all pertinent information relating to
leases for Network Space. The Parties will update the Master
Premises Plan from time to time as necessary. The Master Premises
Plan will set forth a prioritisation schedule for altering the
facilities arrangements and will include policies regarding the
separation of SITA Specific Staff from Equant and/or Network Staff
(where applicable), notice periods in respect of changes of
utilisation of Space (which shall apply to a site only until the
Site Specific Arrangement for such site has been executed) and the
terms for Equant’s and/or SITA SC’s use of Network Space identified
by Equant pursuant to Clause 13.1(d).

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
29	 	Dated: 30 November 2001

 

 

	 	 	 
	 	(c)	
The Master Premises Plan will serve as a framework for
formalising site-specific arrangements between the Parties. The
Parties will agree in writing on the specific arrangements to apply
at each site (the “Site Specific Arrangements”) as soon as
reasonably practicable after the Effective Date. Site Specific
Arrangements must be in writing and signed by the head of each
Party’s department responsible for premises (or a direct report of
such individual designated for such purposes) to be effective.
	 	 	 
	 	(d)	
As part of developing the Master Premises Plan, Equant will
identify and inform SITA SC of any Network Space that Equant intends
that either Equant staff or Network Staff will use in accordance
with P&I following the Effective Date. Such Network Space will be
categorised as to whether it is Exclusive Space or Shared Space, and
whether it is leased from a third party (“Leased Space”) or owned by
SITA SC (or an applicable SITA Group Company) (“SITA-Owned Space”).
The usage of Exclusive Space will be governed by Clause 13.2 and the
usage of Shared Space by Clause 13.3.
	 	 	 
	 	(e)	
The Parties agree that, with respect to each Leased Space,
each Party will be responsible for its proportionate share of the
lease and General Services costs for the remainder of the term of
the lease unless the Parties mutually agree otherwise on a
case-by-case basis with each Leased Space.
	 	 	 
	 	(f)	
This Clause 13.1(f) applies with respect to Space prior to
the Parties entering into a Site Specific Arrangement for such
Space. Both Parties will co-operate regarding any suggested changes
in their use of such Space taking into account each other’s plans
and respective requirement regarding the Space in question. In the
event that either Party proposes to make a material change to the
then-current arrangements to Space which would affect the other
Party (including, for the avoidance of doubt, any lease surrender,
expiry, renewal or extension, any new lease or any proposed purchase
or disposal of owned real property) or any proposals to expand or
reduce the use of the space it uses, such proposing Party will
provide reasonable written notice to the other Party in advance of
such proposed changes. The other Party shall have thirty (30) days
following receipt of such written notice in which to review and
comment on such proposed changes. If the other Party does not
respond within thirty (30) days, or if agreement has not been
reached within sixty (60) days, following the date of the proposing
Party’s notice, the request will be escalated to the Executive
Committee. Except as provided in this Clause 13.1(f), neither Party
may initiate any change with respect to space that will adversely
affect the other Party without the written Consent of the other
Party or as expressly provided in the applicable Site Specific
Arrangement until the end of the lease or equivalent agreement.
	 	 	 
	 	(g)	
If a Party proposes to expand or reduce its utilisation of
Space other than upon expiration or termination of a lease and this
results in the relocation of the other Party pursuant to this Clause
13, then the proposing Party will be responsible for the other
Party’s reasonable resulting relocation and other associated costs,
unless mutually agreed otherwise.
	 	 	 
	 	(h)	
As used below, “Premises Rental Amount” will mean:

	 	 	 	 
	 	(i)	 	
with respect to Leased Space, the proportion that
the Network Space or the space used by a Party, as applicable,
at a facility or a premise bears to the total Leased Space
(excluding common areas) in such building multiplied by the
actual amount incurred by the Party that is the lessee in
respect of the applicable time period for the total Leased
Space; or
	 	 	 	 
	 	(ii)	 	
with respect to Network Space which is SITA-Owned
Space, the then-current open market rent applicable to such
Network Space. Following the Effective

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
30	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
Date until the market rate has been agreed with respect to a
SITA-Owned Space, Equant will continue to pay the amount it
paid immediately prior to the Effective Date with respect to
such Space and, once the market rate for such Space has been
agreed, Equant will ‘true up’ for any shortfall for the
intervening time.

	 	 	 
	13.2	 	
Exclusive Space

	 	 	 	 
	 	(a)	 	
Leased Space

	 	 	 	 
	 	(i)	 	
Pre-Transfer
	 	 	 	 
	 	 	 	
For Leased Space which is Exclusive Space prior to a Network
Transfer:

	 	 	 	 
	 	(A)	 	
SITA SC (or the applicable SITA
Group Company) and Equant will agree to terms whereby
such Network Space will be used by Network Staff for
the term of the underlying lease, unless the Parties
agree to some other period. SITA SC shall include on
the Statement of Costs the Premises Rental Amount for
such space.
	 	 	 	 
	 	(B)	 	
Equant will provide SITA SC with
P&I relating to the administration of underlying
leases, including lease extensions, renewals,
cancellations or replacement leases, and SITA SC (or
the applicable SITA Group Company) will follow such
P&I.

	 	 	 	 
	 	(ii)	 	
Post-Transfer
	 	 	 	 
	 	 	 	
For Leased Space which is Exclusive Space, where legally
possible and commercially reasonable SITA SC (or the
applicable SITA Group Company) will transfer the underlying
lease for such Network Space promptly following the Network
Transfer. If it is not possible to transfer such underlying
lease, SITA SC will sublet such Network Space to Equant on
the same terms and conditions as the underlying lease where
legally possible and commercially reasonable. If neither of
the foregoing are legally possible or commercially
reasonable, SITA SC (or the applicable SITA Group Company)
and Equant will use commercially reasonable efforts to
either (1) amend such lease to allow such assignment or
sub-lease or (2) find alternative arrangements pursuant to
which Equant may use such Network Space for the term of the
underlying lease, unless the Parties agree to some other
period. Upon the expiration of the underlying lease, Equant
will be solely responsible for extending, renewing or
replacing the underlying lease. Whether pursuant to a
lease, sublease or other arrangement, Equant will be charged
the Premises Rental Amount for such Network Space.
	 	 	 	 
	 	(iii)	 	
General
	 	 	 	 
	 	 	 	
Where possible under the applicable lease, Equant will have
the right to sub-let any portion of such Leased Space to a
third party of reasonable business standing, taking into
account the Parties’ use of the remaining Leased Space.

	 	 	 	 
	 	(b)	 	
SITA-Owned Space
	 	 	 	 
	 	 	 	
The following provisions apply to SITA-Owned Space used exclusively
by Network Staff, either prior to or after the relevant Network
Transfer (or both, as applicable)

	 	 	 	 
	 	(i)	 	
The Parties will agree, on a case-by-case basis,
on the Premises Rental Amount in accordance with Clause
13.1(h)(ii) and the term for which Equant will commit to use
such Network Space as well as any extension options and

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
31	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
other terms relevant to such Network Space, which the
Parties will reflect in the applicable Site Specific
Arrangement. In any event, if the Parties have not agreed
to such terms, SITA SC will give Equant written notice of
any expiration or termination of Equant’s right to use any
such Network Space at least two (2) years if such Network
Space houses a Network node and nine (9) months in other
cases, unless mutually agreed otherwise.
	 	 	 	 
	 	(ii)	 	
SITA SC (or the applicable SITA Group Company)
will include the Premises Rental Amount for such Network Space
on the Statement of Costs or will charge Equant the Premises
Rental Amount for such Network Space.
	 	 	 	 
	 	(iii)	 	
If SITA SC (or the applicable SITA Group
Company) intends at any time prior to the Network Transfer in
the relevant Country to sell a SITA-Owned Space, SITA SC will
notify Equant to such effect. If SITA SC receives an offer
for the purchase of such SITA-Owned Space from a third party
that it intends to accept, then prior to entering into a
definitive, binding agreement for such sale SITA SC will give
Equant thirty (30) days advance written notice of the intended
sale and Equant will have a right of first refusal to acquire
such space on the same terms as have been agreed with the
third party within such time. If Equant does not exercise its
right of first refusal with respect to such SITA-Owned Space,
SITA SC agrees that the sales agreement with the third party
will provide that the third party will honour the terms of the
then-current Site Specific Arrangement (or, if there is no
Site Specific Arrangement, the minimum occupancy term
specified in Clause 13.2(b)(i) and that Equant will pay the
Premises Rental Amount for such term).
	 	 	 	 
	 	(iv)	 	
If such Network Space becomes surplus to Equant’s
requirements, Equant shall first give SITA the right to
re-occupy such surplus Space and then will have the right to
sub-let any remaining portion of such Network Space to a third
party of reasonable business standing, taking into account the
Parties’ use of the remaining Leased Space.

	 	 	 
	13.3	 	
Shared Space

	 	 	 	 
	 	(a)	 	
General

	 	 	 	 
	 	(i)	 	
Except as provided otherwise in Clause
13.3(a)(ii), whichever Party occupies the majority of Shared
Space forming a Separate Facility will have General Services
management responsibility for such space, unless otherwise
mutually agreed.
	 	 	 	 
	 	(ii)	 	
Notwithstanding Clause 13.3(a)(i) above, in the
following Shared Spaces, SITA SC will have General Services
responsibility: LHR, QIF, SIN, YUL, PAR 112, BEY and GVA
(such sites together, the “SITA Corporate Sites”). Where part of a
SITA Corporate Site is occupied by Network Staff or Equant and
the General Services can commercially reasonably be operated
independently, then Equant will have the right to assume the
General Services responsibility for that part of the SITA
Corporate Site.
	 	 	 	 
	 	(iii)	 	
The Party that has General Services
responsibility for each Shared Space (except as specified in
Clause 13.3(a)(ii)) will charge the other Party, pro rata
based on the percentage of such space each Party occupies, for
(1) all reasonable General Services and other facilities
costs, and (2) the reasonable overhead costs incurred in
respect of such General Services and other facilities
costs. Where the Party with General Services
responsibility provides General Services or incurs premises
costs related

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
32	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
solely to the other Party (including in respect of Equant,
costs related to all Network Space), the other Party shall
be recharged with all such costs. Where the Party with
General Services responsibility provides General Services
or incurs premises costs which it utilises solely
itself (which in respect of SITA shall mean solely in
respect of non-Network Space), no such costs will be
recharged to the other Party.
	 	 	 	 
	 	(iv)	 	
In Shared Space, the General Services
will include the provision of general support services
including, as appropriate:

	 	 	 	 
	 	(A)	 	
space planning and provisioning,
including, where legally possible, the display of the
other Parties’ branding, as commercially reasonable;
	 	 	 	 
	 	(B)	 	
site maintenance and logistics,
including management of the local purchasing
arrangements;
	 	 	 	 
	 	(C)	 	
health, safety and security
management, including commitments to comply with local
law and regulations;
	 	 	 	 
	 	(D)	 	
reception and mail services;
	 	 	 	 
	 	(E)	 	
provision of telephone services; and
	 	 	 	 
	 	(F)	 	
travel and mission support
(including the arrangement of travel insurance) for the
employees of the other Party at that site.

	 	 	 	 
	 	 	 	
The Parties will mutually agree for each site the additional
services to be provided at such site, the Party that will be
responsible for providing such services (either itself or
through third parties), and the terms on which such services
will be provided. The Parties will agree and put in place a
process for tracking and allocating the cost of such
services between the Parties.
	 	 	 	 
	 	(v)	 	
The Party with facility management responsibility
for a Shared Space will respond to requests from employees of
the other Party using that Shared Space as if they were
employees of the Party with such responsibility and shall
otherwise treat such employees in a commercially reasonable
manner given the nature of the space and other relevant
details related to the space and any particular situation.
	 	 	 	 
	 	(vi)	 	
Each Party will have the right, in a Shared Space
facilities managed by the other Party, upon reasonable notice
to such other Party, to review any records documenting the
provision of the facility management services in that Shared
Space.

	 	 	 	 
	 	(b)	 	
Shared Leased Space

	 	 	 	 
	 	(i)	 	
The Network Space portion of such Shared Leased
Space will be subject to the provisions of Clause 13.2(a)(i)
prior to the applicable Network Transfer, and subject to
Clause 13.2(a)(ii) following the applicable Network Transfer.
	 	 	 	 
	 	(ii)	 	
In addition to the requirement of Clause 13.1(e),
if either Party decides that it will no longer use all of its
portion of any particular Shared Space, such Party will
promptly notify the other Party in writing, and the other
Party will be given the first option to take such space. In
any event each Party will continue to be responsible for the
costs of its portion of such Leased Space through the end of
the then current underlying lease, unless otherwise mutually
agreed. Each Party will use commercially reasonable efforts
to minimise the cost to the Parties of such Network Space and
will provide such information, co-operation and assistance as
is reasonably requested by the other Party with regard to such
Network Space, including, where agreed by both Parties,
terminating or sub-letting such lease. Where permitted by the

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
33	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
applicable lease, both Parties will have the right to sublet
their respective surplus portions of such Space to third
parties of reasonable business standing, taking into account
the Parties’ use of the remaining Leased Space.

	 	 	 	 
	 	(c)	 	
Shared SITA-Owned Space

	 	 	 	 
	 	(i)	 	
The Network Space portion of SITA-Owned Space
will be subject to the provisions of Clause 13.2(b).
	 	 	 	 
	 	(ii)	 	
In addition to the requirement of Clause 13.1(e),
if either Party decides that it will no longer use all of its
portion of the any particular Shared Space, such Party will
promptly notify the other Party in writing, and the other
Party will have the first option to take such space. In any
event Equant will continue to be responsible for the costs of
its portion of such Shared Space through the end of the then
current lease or agreement with SITA SC, unless otherwise
mutually agreed. Each Party will use commercially reasonable
efforts to minimise the cost to the Parties of such Network
Space and will provide such information, co-operation and
assistance as is reasonably requested by the other Party with
regard to such Network Space, including, where agreed by both
Parties, terminating or sub-letting such lease. Equant will
have the right to sublet any portion of such Network Space to
a third party of reasonable business standing, taking into
account the Parties’ use of the remaining Leased Space.

	 	 	 
	14.	 	
JV AGREEMENT
	 	 	 
	 	 	
The JV Agreement is terminated by separate Instrument. However,
notwithstanding the termination of the JV Agreement, the Parties will
continue to apply the cost-sharing rules of the JV Agreement where
indicated in this Agreement.
	 	 	 
	15.	 	
SITA ICNO COSTS AND COST SHARED COSTS
	 	 	 
	15.1	 	
SITA ICNO Costs

	 	 	 	 
	 	(a)	 	
Equant provides SITA SC with global Network Services in
accordance with the Services Agreement and in connection therewith,
Equant provides P&I in respect of SITA In-Country Network
Operations. Equant agrees to become responsible to SITA SC for all
costs which SITA SC (or the applicable SITA Group Company) incurs in
conducting its In-Country Network Operations (the “SITA ICNO
Costs”). Each month, SITA SC shall calculate the SITA ICNO Costs in
the relevant local currency for that month and shall convert such
costs to U.S. dollars at an embedded foreign exchange rate for that
month, which rate shall be the Preceding Month-End Exchange Rate.
Equant shall fund such SITA ICNO Costs at the same embedded exchange
rate.
	 	 	 	 
	 	(b)	 	
Statement of SITA ICNO Costs

	 	 	 	 
	 	(i)	 	
On the third (3rd) Business Day following each
month-end close or such other time as mutually agreed by the
Parties, SITA SC will

	 	 	 	 
	 	(A)	 	
provide Equant with a statement of
the amount of the SITA ICNO Costs for each Country for
the previous month calculated in accordance with Clause
15.1(a) above (the “Statement of Costs”), and

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
34	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(B)	 	
confirm that, to its reasonable
knowledge, such Statement of Costs accurately
represents the actual SITA ICNO Costs excluding all
other costs.

	 	 	 	 
	 	(ii)	 	
Equant may raise any questions regarding any
Statement of Costs with the SITA accountants responsible for
the accounts of the applicable Country and/or the SITA central
or regional accountants. Such accountants will respond to any
such enquiry within a commercially reasonable period. If such
questions are to the local accountants and are in writing,
then Equant shall send a copy of the questions to such local
accountant’s regional controller.

	 	 	 	 
	 	(c)	 	
Treatment of Disputed Amounts and Errors

	 	 	 	 
	 	(i)	 	
If Equant disputes in good faith any amount on a
Statement of Costs, then Equant shall provide prompt written
notice to SITA SC, explaining in reasonable detail the nature
of the dispute and attaching appropriate supporting
documentation. After such written notice has been delivered,
Equant may withhold from its funding for the month following
the period covered by such Statement of Costs an amount equal
to such disputed amount until the dispute is resolved. If it
is determined that the contested amount is a SITA ICNO Cost,
Equant will promptly provide the funds withheld together with
interest thereon calculated at a rate equal to the Agreed
Interest from the due date of such funds to the date on which
they are paid. The Parties will use commercially reasonable
efforts to solve such disputes as soon as possible.
	 
	 	(ii)	 	
If, prior to the Network Transfer in a Country,
SITA SC or Equant discovers, whether as a result of Clause
15.1(c)(i) above or otherwise, that a cost was incorrectly
included or incorrectly excluded from any Statement of Costs
in respect of that Country, then such error shall be corrected
on the following Statement of Costs provided to Equant for the
Country concerned and the funding shall be adjusted as
appropriate.
	 
	 	(iii)	 	
For up to twelve (12) months following a Network
Transfer, either Party shall have the right, once within such
twelve (12) months, to raise issues with respect to any cost
(i) which has been incorrectly included or incorrectly
excluded from any Statement of Costs during the five (5) years
prior to such Network Transfer, and (ii) for single costs
which each amounts to at least U.S. $1,000 (for which purpose
a series of repeated errors of the same nature with the same
supplier shall be treated in the aggregate as a single cost).
Equant shall have the right to perform one (1) audit of SITA
SC’s accounting records relating to the relevant former ICNO
during such twelve (12) months for this purpose. Any amount
so over- or under-funded by Equant shall be paid or repaid, as
applicable, as set out below:

	 	 	 	 
	 	(A)	 	
The costs or the portion thereof,
which either Party incorrectly bore for any period
prior to the Effective Date, whether pursuant to the JV
Agreement or otherwise, will be reimbursed pursuant to
the JV Agreement applying the cost sharing ratios
applicable to the time period(s) in respect of which
such costs or expenses (including any associated
interest, penalties and the like) relate.
	 
	 	(B)	 	
For any period after the Effective
Date, any costs which are not SITA ICNO Costs
incorrectly paid by Equant will be reimbursed by SITA
SC and, subject to Clause 15.1(d) below, any SITA ICNO
Costs not charged to Equant will be paid by Equant.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
35	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(d)	 	
In addition, either Party may have additional rights to make
claims as expressly set forth in this Agreement (e.g., under Clauses
12.3, 12.4 and 16.4(e)).Where the aggregate SITA ICNO Costs excluded
from the Statements of Costs for a prior accounting period is
material (it being understood that for purposes of this Clause
15.1(d), “material” shall be defined in accordance with Equant’s
materiality level for adjustment of costs, as set by Equant’s
independent auditors for the relevant accounting period), and such
errors were not corrected within the cut-off date for the acceptance
of central audit adjustments for Equant’s accounts for the year
concerned, then such ICNO Costs will not be paid by Equant to SITA
SC under Clause 15.1(c)(iii) above, to the extent that such errors
were due to staff of SITA SC which are not Network Staff, including
the accountants of SITA SC.
	 
	 	(e)	 	
SITA ICNO Costs
	 
	 	 	 	
The SITA ICNO Costs shall be net of any relevant credits or rebates
and shall include, as applicable:

	 	 	 	 
	 	(i)	 	
Network Access Circuit costs;
	 
	 	(ii)	 	
depreciation, rental and maintenance costs in
respect of applicable Network Access Equipment;
	 
	 	(iii)	 	
employment costs of Network Staff;
	 
	 	(iv)	 	
other circuits and other PTT costs, including
international and domestic circuit costs;
	 
	 	(v)	 	
rental and maintenance costs for Network Assets;
	 
	 	(vi)	 	
Premises Rental Amounts;
	 
	 	(vii)	 	
other building infrastructure and General
Services expenses incurred by SITA in accordance with the
principles set out in Clause 13;
	 
	 	(viii)	 	
depreciation and Agreed Interest on Network Assets and
Intangible Network Resources (including all capitalised
development costs), including, in the case of assets destroyed
or damaged, the remaining net book value of such assets (less
the amounts of the insurance proceeds, if any, received by the
applicable SITA Group Company in respect of such destruction
or damage);
	 
	 	(ix)	 	
insurance costs with respect to In-Country
Network Operations up to insurance levels approved by Equant
pursuant to the Equant P&I under Clause 5, including
employee-related insurance (e.g., workers’ compensation, and
travel insurance) and insurance on Network Assets.
	 
	 	(x)	 	
audit, accountancy, legal, tax and other fees of
external advisors and other central costs incurred by SITA SC
(or the applicable SITA Group Company) relating to the
In-Country Network Operations, in addition to those costs
covered by Clauses 15.1(e)(xii) and 15.1(e)(xiii) below.
Where such fees or costs are commissioned by non-Network Staff
and are to be submitted as SITA ICNO Costs, SITA SC will
obtain Equant’s prior written approval before incurring any
such costs. SITA SC will provide Equant with reasonably
sufficient information at the time of such a request for
approval so as to permit Equant to make an informed decision,
with such request being made reasonably in advance of the
requirement to incur the relevant costs. If SITA SC fails to
meet the notice provisions set out in this paragraph (x), the
Parties may agree that such costs be included in SITA ICNO
Costs;
	 
	 	(xi)	 	
costs and expenses of ICNO accounting functions
apportioned to ICNO activity according to the estimated time
dedicated to ICNO activity as a percentage of ICNO activity
and SITA Specific Activity, which time estimate

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
36	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
shall be calculated as follows unless the Parties otherwise
mutually agree: (1) the total costs of the local
accountants of SITA SC (or the applicable Group Company)
will be allocated amongst the following functions in the
following percentages:

	 	 	 	 
	 	(A)	 	
[*] with
respect to access circuits,
	 
	 	(B)	 	
[*] with respect
to number of staff,
	 
	 	(C)	 	
[*] with respect
to the net book value of assets, and
	 
	 	(D)	 	
[*] with
respect to monthly costs;

	 	 	 	 
	 	 	 	
(2) Equant and SITA SC shall share the costs and expenses of
each such function according to the relative percentage of
the items associated with each function (i.e., access
circuits, staff, net book value of assets, and monthly
costs) attributable to Equant or SITA SC (or the applicable
SITA Group Company) for the applicable ICNO; provided,
however that the costs of access circuits will be excluded
from the ICNO’s monthly costs for the purposes of Clause
15.1(e)(xi)(1)(D) above.

	 	 	 	 
	 	(xii)	 	
regulatory and non-recoverable tax costs, which

	 	 	 	 
	 	(A)	 	
will be allocated 100% to SITA ICNO
Costs if they are exclusively related to the In-Country
Network Operations,
	 
	 	(B)	 	
if such costs are not exclusively
related to the In-Country Network Operations, will be
allocated to the Network Operations as SITA ICNO Costs
according to the proportion that the relevant turnover
of In-Country Network Operations bears to the total
turnover of In-Country Network Operations and SITA
Specific Activities in such Country, or
	 
	 	(C)	 	
if a different method is agreed by
Parties, will be allocated in accordance with such
method;

	 	 	 	 
	 	(xiii)	 	
a monthly allowance for each Country for:

	 	 	 	 
	 	(A)	 	
support for human resources (as
agreed between the Parties from time to time);
	 
	 	(B)	 	
general IT and systems support (if
any) provided by SITA SC (or the applicable SITA Group
Company); and
	 
	 	(C)	 	
General Services as agreed between
the Parties in accordance with the principles set forth
in Clause 13 provided by SITA SC (or the applicable
SITA Group Company) to In-Country Network Operations.

	 	 	 	 
	 	 	 	
Each such Set Amount for each Country may be updated once a
year by the Parties according to the latest available
information, but otherwise shall not be changed until the
Network Transfer for the Country concerned has occurred.
Following the Network Transfer, SITA SC shall cease charging
any such flat fee for such Country thereafter;
	 
	 	(xiv)	 	
a monthly set amount (the “Set Amount”) for the
financial, administrative and other regional and central
support provided by SITA SC (or the applicable SITA Group
Company) to In-Country Network Operations, with such Set
Amount being one of four (4) levels (large, medium, small and
very small) calculated according to the size of the Network
Operations as specified in (and pursuant to the terms and
conditions set forth in) Schedule D. Such Set Amount shall
cover the following costs:

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
37	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(A)	 	
regional and central accounting and
treasury costs;
	 
	 	(B)	 	
legal, regulatory and other
support; and
	 
	 	(C)	 	
accounting systems support for
In-Country Network Operations (e.g., SITA SUN,
including the central system)
	 
	 	
The Set Amount for each Country may be updated once a year
by the Parties according to the latest available
information, but otherwise shall not be changed until the
Network Transfer for the Country concerned has occurred.
Following the Network Transfer, SITA SC shall charge the
applicable amounts specified in Clauses 4.6(b)(iii)(D) and
4.6(b)(iii)(E) until all remaining Other Network Resources
have been transferred in such Country and will cease
including any such Set Amount for such Country thereafter;

	 	 	 	 
	 	(xv)	 	
costs charged by Equant to SITA SC (or the
applicable SITA Group Company) for services provided in
respect of In-Country Network Operations; and
	 
	 	(xvi)	 	
local bank charges, interest costs (net of
interest income), and foreign exchange differences related to
invoices accounted for in the In-Country Network Operations
which are accounted for in a currency other than the
applicable local currency.

	 	 	 	 
	 	(f)	 	
Preparation of Budgets and Approval of Expenses

	 	 	 	 
	 	(i)	 	
Equant shall provide policies, procedures and
guidance on the preparation of the budget for each Country’s
Network Operations. The SITA SC local accountants will
provide support to local management in the preparation of the
budget and explaining variances between budgets and actuals,
insofar as they have the information to do so.
	 
	 	(ii)	 	
SITA SC’s accountants will not pay any invoice or
disbursement unless properly authorised by Network Staff or by
Equant, it being understood that Network Staff will be fully
responsible in accordance with Equant P&I for maintaining and
managing the relationship with all suppliers in connection
with In-Country Network Operations.

	 	 	 	 
	 	(g)	 	
Accounting Policies and Procedures for SITA ICNO Costs
	 
	 	 	 	
Equant will advise SITA SC on appropriate accounting policies and
procedures for In-Country Network Operations in accordance with
current U.S. GAAP or Equant corporate rules, and SITA SC shall
observe such policies and procedures provided that where (i) such
policies and procedures are not in conformity with the applicable
statutory requirements of SITA SC, SITA SC will retain its current
methodology and will prepare the Statements of Costs pursuant to
Clause 15.1 accordingly, and Equant may, in its sole and absolute
discretion, apply adjustments in its books and records to ensure
that the recharge is consistent with Equant’s accounting policies
and procedures; or (ii) such policies and/or procedures would
require SITA SC to change its policies and procedures to conform to
those of Equant, and such a change would be reasonably likely to
have a material effect on the accounts of SITA SC (or the
applicable SITA Group Company) (it being understood that for
purposes of this Clause 15.1(g), “material” shall be defined in
accordance with SITA SC’s materiality levels, as set by SITA SC’s
independent auditors for the relevant accounting period) in respect
of its other activities, the chief financial officers of Equant and
SITA SC will discuss and agree the appropriate policy and/or
procedure to adopt. If SITA is required to change its policies and
procedures as a result of this clause, the Parties will agree a
reasonable period for such changes to be introduced

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
38	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
and a budget for doing so and the costs incurred under such budget
will be reimbursed to SITA SC by Equant.
	 
	 	 	 	
In respect of particular accounting policies:

	 	 	 	 
	 	(i)	 	
The Parties agree that the current policy of
accruing holiday provisions on a straight line basis will
continue for the time being, until such time as Equant chooses
to change it, in which case Equant will provide a documented
process and the data required.
	 
	 	(ii)	 	
In the event that any change in accounting
policies relating to pensions, end of service indemnities, or
post retirement benefit schemes is requested by Equant, and
this change causes an increased or decreased cost to SITA SC
(including for the avoidance of doubt any change to the
current U.S. GAAP policies to amortise forward any unaccrued
costs in respect of pensions, end of service indemnities or
post retirement benefit schemes), then SITA SC shall either be
reimbursed for or shall refund to Equant such increased or
decreased costs, respectively, under the following principles:

	 	 	 	 
	 	(A)	 	
Any differences between the
liabilities based on “point in time valuations” as of
the Effective Date as compared with costs accrued as of
the Effective Date shall be borne in accordance with
the JV Agreement; it being understood that all costs
and expenses incurred by SITA SC in connection with the
process of calculating such differences shall be deemed
SITA ICNO Costs pursuant to Clause 15.1(e).
	 
	 	(B)	 	
All costs incurred in respect of
time periods after the Effective Date will be borne by
Equant pursuant to Clause 15.1.

	 	 	 	 
	 	(h)	 	
If SITA SC fails to comply with Equant’s policies and
procedures provided under Clause 15.1(g) above, except with respect
to those matters set forth in Clauses 15.1(g)(i) and 15.1(g)(ii),
Equant shall (if it seeks to remedy such failure) promptly notify
SITA SC of such failure to comply, and shall allow SITA SC thirty
(30) days in which to cure such failure. If SITA SC fails to cure
such failure within such thirty (30) day period, then Equant will
have the right to withhold twenty percent (20%) of the funding due
under Clause 15.1(i) for SITA ICNO Costs excluding all circuits
costs for the relevant Country, it being understood that such
withholding right shall not apply to large Countries as set forth in
Section 1 of Schedule C until 1st October 2001 but in any event will
not apply to France. Once SITA SC has cured the failure, Equant
will make payment of any amounts withheld within two (2) days
following receipt of appropriate evidence of such cure. If SITA SC
disputes the basis on which Equant is withholding such funds, the
matter will be referred to a mutually agreed external accountant for
consideration, acting as expert and not as arbitrator. The Party
who does not prevail will pay the fees of such accountant this
purpose. If the dispute is not resolved within thirty (30) days
following referral to such accountant, the dispute will be referred
for resolution first to the Parties’ chief financial officers and,
then if applicable, pursuant to Clause 8 of the Strategic
Relationship Umbrella Agreement. If it is determined that such
funds should not have been withheld by Equant, Equant will make
payment of such amounts withheld within two (2) days of such
determination.

	 	 	 	 
	 	(i)	 	
As from 1 November 2001, if such a failure to
cure occurs with respect to the ICNO in France before the
Network Transfer in France is completed and Equant gives SITA
SC (or the applicable SITA Group Company) written notice of
such failure, SITA SC (or the applicable SITA Group Company)
agrees that SITA SC (or the applicable SITA Group Company)
will, with

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
39	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
Equant’s assistance, within thirty (30) days following such
notice, develop and submit for Equant’s Consent a plan to
cure such failure and will, also with Equant’s assistance,
diligently execute the cure plan. If there is not an agreed
plan within such thirty (30) days (provided Equant has
supplied the assistance required under the previous sentence
in a timely fashion and has not withheld its Consent
unreasonably), then Equant will have the right to withhold
ten percent (10%) of the funding due under Clause 15.1(i)
for the France SITA ICNO Costs excluding all circuits costs
until such a plan has been agreed. If SITA SC (or the
applicable SITA Group Company) does not diligently execute
the agreed plan, then Equant may give SITA SC a notice to
such effect. If SITA SC (or the applicable SITA Group
Company) does not commence to diligently execute the plan
within fourteen (14) days following such notice, Equant will
have the right to withhold ten percent (10%) of the funding
for the France SITA ICNO Costs excluding all circuits costs
until SITA SC does come to diligently perform the agreed
plan.

	 	 	 	 
	 	(i)	 	
Treasury Mechanics
	 
	 	 	 	
The treasury mechanics for funding of the SITA ICNO Costs shall
operate as follows:

	 	 	 	 
	 	(i)	 	
SITA SC will submit to Equant for Equant’s review
and approval forecasted ready money needs for each month at
the beginning of such month. The forecasts will be broken
down by Country and by week. Equant will review and modify
the forecasts as appropriate in Equant’s judgement. Equant
will provide funds to satisfy such ready money needs and
directions to SITA SC for the timing and allocation of
disbursements.
	 
	 	(ii)	 	
On the Statement of Costs, SITA SC shall show the
difference between the amount of the funds that Equant
provided for a Country pursuant to Clause 15.1(i)(i) and the
SITA ICNO Costs in such Country in such month, including, as
agreed, lump-sum adjustments for material accruals and/or
prepayments. The resulting net amount, other than amounts in
dispute pursuant to Clause 15.1(c), will be settled no
later than five (5) Business Days following receipt of the
Statement of Costs.
	 
	 	(iii)	 	
Equant shall make payments into one (1) or more
central bank accounts and SITA SC shall be responsible for the
transmission of the funding to the applicable Countries as
directed by Equant pursuant to Clause 15.1(i)(i) (which
transmission may be made directly or indirectly via another
central SITA SC bank account provided that such amounts are
promptly paid on to the applicable Country). Any such central
bank account(s) shall be separate from other SITA SC bank
account(s), and any interest earned on such account(s) shall
be netted against the SITA ICNO Costs.
	 
	 	(iv)	 	
If Equant fails to pay any forecasted ready money
needs under this Clause 15.1(i) by the relevant due date
(other than amounts in dispute pursuant to Clause
15.1(c), Equant shall pay interest at the Agreed Interest
rate for the period from the due date for such payment until
payment is received or such amount has been netted by SITA SC
pursuant to the following sentence. In addition, if payment
is not received within ten (10) days following the applicable
due date SITA SC may credit such unpaid forecasted ready money
needs against payments due to Equant with two (2) days prior
written notice to the Treasurer of Equant N.V. provided that
Equant does not, within such two (2) days, notify SITA SC that
it is paying such unpaid forecasted ready money needs.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
40	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(j)	 	
SITA SC shall provide Equant with supporting data and
visibility (including balance sheet information) with respect to
SITA ICNO Costs (including relevant access to the SITA SC accounting
systems. In-Country Network Operations will hold their accounting
records on the SITA SC accounting systems (i.e., SITA SUN). SITA SC
shall hand-off data, at the central level, within three (3) Business
Days following the end of the calendar month. Equant (and its
designated external accountants) shall have the right to audit the
SITA ICNO Costs up to once per calendar quarter at the central level
and up to once per calendar quarter at the local level (but in no
event more than an aggregate of fifteen such local audits per
calendar quarter), including relevant access to SITA SC accounting
systems for this purpose (including balance sheet information), such
audit to be at Equant’s own expense. Equant may also request SITA
SC’s external auditors to carry out the work under delegation from
Equant’s external auditors at Equant’s expense (see Clause
15.1(e)(x)). In addition, the Parties may agree to appoint joint
auditors for the audit requirements of In-Country Network
Operations. The Parties will provide each other promptly with
copies of all external audit reports relating to the relevant
In-Country Network Operations.
	 
	 	(k)	 	
With respect to any additional accountants SITA SC deems
necessary to hire into or assign to In-Country Network Operations
accounting function in excess of those in the latest budget or
re-forecast, SITA SC will provide Equant with the appropriate
justification for such additional accounting resource needed in such
Country. Equant will not unreasonably withhold its approval of such
additional resources, and will provide its response to the request
within thirty (30) days following Equant’s receipt of such
justification. If SITA SC does not receive a response from Equant
within such time, or does not agree with Equant’s denial of a
request, the matter will be referred to the chief financial officers
of SITA SC and Equant. If the chief financial officers do not agree
a resolution to the dispute within thirty (30) days following the
date on which the dispute is referred to them, the dispute will be
resolved according to the Dispute Resolution Process.

	 	 	 
	15.2	 	
Cost Shared Costs
	 
	 	 	
Until fourteen (14) days prior to SITA SC’s cut off date for acceptance
of audit adjustments for calendar year 2001, SITA SC and Equant will
instruct their respective accountants (including, in the case of SITA SC,
accountants of the SITA Group Company) to segregate and account for all
ICNO costs or credits relating to the period prior to the Effective Date
under separate accounting codes in its accounting records. These costs
or credits will be cost shared pursuant to the JV Agreement applying the
cost sharing ratios applicable to the time period(s) in respect of which
each such cost or credit (including any associated interest, penalties
and the like) relates. Any costs or expenses that relate to periods
prior to the Effective Date but are not discovered until after the date
in the first sentence of this clause will be SITA ICNO Costs. For this
purpose, SITA SC shall have the right to audit once Equant’s accounting
records in respect of its network operations prior to the cut off date
for acceptance of audit adjustments for calendar year 2001.
	 
	15.3	 	
Netting of Amounts Due
	 	 	
The Parties may net amounts due under this Agreement in accordance with
Clause 18.8 of the Services Agreement.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
41	 	Dated: 30 November 2001

 

 

	 	 	 
	16.	 	
REIMBURSEMENT OF RESTRUCTURING COSTS AND MATERIAL FINANCIAL DETRIMENT COSTS
	 
	16.1	 	
Applicability
 

This Clause 16 applies only to those Transfers that occur on or after the Effective Date.
	 
	16.2	 	
Restructuring Costs

	 	 	 	 
	 	(a)	 	
Equant shall reimburse SITA SC (or the applicable SITA Group
Company) for all Restructuring Costs. Such Restructuring Costs
shall be reimbursed by Equant as paid by SITA SC and not by way of
up-front, lump-sum, net present value payments based on calculations
of ongoing or recurring future costs. Restructuring Costs shall be
divided into the following categories:

	 	 	 	 
	 	(i)	 	
transactional Restructuring Costs related to the
transactions taken to effect a Transfer (e.g., stamp taxes,
transfer taxes (the “Transactional Restructuring Costs”);
	 
	 	(ii)	 	
IT Transition Restructuring Costs; and
	 
	 	(iii)	 	
Other Restructuring Costs budgeted for by the
Parties pursuant to Clause 16.2(b) below.

	 	 	 	 
	 	
Restructuring Costs do not include any costs to be shared by the
Parties pursuant to Clause 4.7.

	 	 	 	 
	 	(b)	 	
Budgets

	 	 	 	 
	 	(i)	 	
For Other Restructuring Costs, the Parties shall
discuss and agree in good faith what restructuring steps are
reasonably required for a Transfer and prepare a mutually
agreed budget for those steps, consistent with industry based
customs and standards reasonably applicable under the
circumstances.
	 
	 	(ii)	 	
With respect to IT Transition Restructuring
Costs, as the Parties develop the IT Transition Plan the
Parties will also establish a budget for each set of discrete
tasks. Each budget will be consistent with the principles set
forth in Clause 7 and Schedule B. As each set of tasks are
performed, the Parties will validate and modify, as mutually
agreed, the relevant budget as reasonably necessary during the
performance of such tasks.
	 
	 	(iii)	 	
If the Parties do not agree to a budget under
this Clause 16.2(b) within a reasonable period of time, either
Party may escalate the issue to the Executive Committee at its
next meeting by giving the other Party ten (10) days prior
written notice of the escalation.
	 
	 	(iv)	 	
Equant shall not be responsible for any costs or
expenses as Other Restructuring Costs or IT Transition
Restructuring Costs which are not authorised in the applicable
agreed budget, unless Equant gives prior written approval for
such costs or expenses.
	 
	 	(v)	 	
Where SITA SC (or the applicable SITA Group
Company) desires to implement steps to a quality or scale
beyond that agreed in the budgets under this Clause 16.2(b)
above, or through a different method resulting in costs beyond
those authorised in the applicable agreed budgets, SITA SC (or
the applicable SITA Group Company) will be responsible for the
resulting additional or incremental costs and expenses itself
and will either pay such costs and expenses directly or
promptly reimburse Equant (as applicable) for

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
42	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
such costs and expenses. Such additional costs will not be
deemed to be Restructuring Costs.

	 	 	 	 
	16.3	Material Financial Detriments
	 
	 	
(a)
	 	Per-Country Transfer Threshold and Reimbursement
	 
	 	 	 	The Material Financial Detriment per-Country Transfer threshold for
each of the five (5) years following a Transfer shall be (i) for
the twelve (12) months following the Transfer, ten percent (10%) of
the budgeted costs being transferred, the budgeted costs being
those for the accounting year in which the Transfer takes place,
and (ii) for each of the subsequent four (4) twelve (12) month
periods, ten percent (10%) of the budgeted costs described in
Clause 16.3(a)(i) above. Once this threshold is reached in any
such twelve (12) month period, Equant will reimburse SITA SC, or
the applicable SITA Group Company, for all Material Financial
Detriment Costs incurred in respect of the relevant Transfer in
such twelve (12) month period, including for the avoidance of doubt
all Material Financial Detriment Costs incurred by SITA SC in such
twelve (12) month period before the threshold is reached and all
Material Financial Detrimental Costs incurred for the remainder of
such twelve (12) month period.
	 
	 	
(b)
	 	Aggregate Threshold
	 
	 	 	 	This Clause 16.3(b) applies solely to those Transfers which, at any
given time, took place within the previous five (5) years but
excludes those Transfers which, at such time, have exceeded the
applicable per-Country Transfer threshold under Clause 16.3(a)
(collectively, the “Aggregated Transfers”). In each accounting
year, Equant will reimburse SITA SC (or the applicable SITA Group
Company) for the Material Financial Detriment Costs SITA SC (or the
applicable SITA Group Company) incurs in respect of such Aggregated
Transfers in excess of five percent (5%) of the sum of the budgeted
costs described in Clause 16.3(a)(i) for such Aggregated Transfers.
SITA SC (or the applicable SITA Group Company) will solely bear
the Material Financial Detriment Costs resulting from such
Aggregated Transfers until this aggregate threshold is exceeded.
	 
	 	
(c)
	 	Submission of Claims and Reporting

	 	 	 	 
	 	(i)	 	
SITA SC will keep Equant reasonably informed from
time to time of the costs SITA SC incurs in a Country which it
may later claim back as Material Financial Detriment Costs.
SITA SC will promptly inform Equant upon SITA SC becoming
aware that costs relating to a Country have become subject to
reimbursement as Material Financial Detriment Costs (because
of having crossed either threshold set forth in Clause 16.3(a)
or 16.3(b)). SITA SC (or the applicable SITA Group Company)
shall submit a claim for reimbursement of each Material
Financial Detriment within six (6) months after such Material
Financial Detrimental threshold (being, as applicable, the
Per-Country Transfer threshold or the Aggregate Transfer
threshold) is equalled or exceeded, and, if applicable, shall
submit a claim for further Material Financial Detriment Costs
related to that Material Financial Detriment within six (6)
months of such further Material Financial Detriment Costs
being paid.
	 
	 	(ii)	 	
SITA SC (or the applicable SITA Group Company)
shall provide a quarterly report to Equant tracking the
Material Financial Detriment Costs for the preceding quarter
in a format to be mutually agreed.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
43	 	Dated: 30 November 2001

 

 

	 	 	 	 
	16.4	Reimbursement Procedures
	 
	 	
(a)
	 	SITA SC (or the applicable SITA Group Company) will submit
eligible Restructuring Costs and Material Financial Detriment Costs
which SITA SC has incurred for reimbursement once a month by the
fifteenth (15th) day of each month, noting any Significant Costs (as
defined below) which have been accrued but not yet paid. Each such
reimbursement request will be supported by reasonable documentation.
Reimbursement requests for IT Restructuring Costs or Other
Restructuring Costs will also indicate whether such cost or expense
is covered by the approved budget or was separately approved by
Equant in writing. Equant will pay such reimbursement requests for
all undisputed amounts by the fifteenth (15th) day of the next
month, provided that Equant shall not be obligated to reimburse any
accrued but unpaid liabilities until payment is made except as set
out in this Clause 16.4(a). Where one or a set of such
Restructuring Costs or Material Financial Detriment Costs exceed US$
100,000 (“Significant Costs”), upon SITA SC’s request and the
receipt of reasonable written notice and documentation evidencing
the required payment to be made by SITA SC (or the applicable SITA
Group Company) and the date such payment is required to be made,
Equant will provide SITA SC (or the applicable SITA Group Company)
the funds required shortly in advance of the date on which such
payment is due. Where Restructuring Costs arise under a budget, the
Parties may agree appropriate treasury mechanics so that Equant
provides the funds to SITA SC shortly in advance to enable SITA SC
(or the applicable SITA Group Company) to settle the relevant
amounts when they fall due.
	 
	 	
(b)
	 	The Parties agree:

	 	 	 	 
	 	(i)	 	
to co-operate with each other and act
commercially reasonably to minimise, reduce or avoid an
expense which would be a Restructuring Cost or Material
Financial Detriment Costs;
	 
	 	(ii)	 	
that Equant shall not be responsible for
Restructuring Costs or Material Financial Detriments Costs to
the extent resulting from any change in applicable law, rule
or regulation following the relevant Transfer except where (1)
Equant, prior to the Transfer, through its representatives on
the JTF, knew that a proposed change in applicable law, rule
or regulation was likely both to be enacted and to cause a
Restructuring Cost or Material Financial Detriment Costs if
enacted, (2) Equant nevertheless decides not to delay or
abandon the Transfer under Clause 4.3(c), and (3) the proposed
change in applicable law, rule or regulation was implemented
by the relevant government within six (6) months following the
Transfer.

	 	 	 	 
	 	(c)	 	
Equant will have the right to audit (or to have external
accountants or relevant specialists audit), upon reasonable advance
notice and during normal business hours, relevant business records
of SITA SC (or the applicable SITA Group Company) to verify the
categorisation, basis and the amount of Restructuring Costs or
Material Financial Detriments Costs reimbursed or claimed under this
Clause 16, including relevant access to the SITA SC accounting
systems. Equant will exercise its rights under this Clause 16.4(c)
not more than four (4) times per calendar year at the central level
and, with respect to additional audits (including at the Country
level), only when and to the extent required to verify the bases and
amounts of Restructuring Costs or Material Financial Detriment
Costs.
	 
	 	(d)	 	
The Parties agree that:

	 	 	 	 
	 	(i)	 	
any Taxes or other eligible expenses that are
payable on a ‘one-off’ basis and arise from or are imposed
directly on the transactions needed to effect the

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
44	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
Transfer itself will be deemed to be Transactional
Restructuring Costs, and not Material Financial Detriment
Costs; and
	 
	 	(ii)	 	
any Taxes or other eligible expenses that arise
on an ‘on-going’ basis following a Transfer will be deemed to
be Material Financial Detriment Costs and not Restructuring
Costs.

	 	 	 	 
	 	(e)	 	
Taxes or regulatory fees (including any associated interest,
penalties and the like) resulting from changes in the status or
structure of SITA SC (or the applicable SITA Group Company) arising
after the Effective Date and not originating directly as a result of
a Transfer shall not be Restructuring Costs or Material Financial
Detriment Costs. The Parties agree that:

	 	 	 	 
	 	(i)	 	
any such Taxes or fees (including any associated
interest, penalties and the like) assessed in respect of time
periods before 2 October 1995 will be borne by SITA SC (or the
applicable SITA Group Company);
	 
	 	(ii)	 	
any such Taxes or fees (including any associated
interest, penalties and the like) assessed in respect of time
period between 2 October 1995 and the Effective Date will be
cost shared by the Parties pursuant to the JV Agreement
(applying the cost sharing proportions applicable to the time
period(s) in respect of which such Taxes, fees, interest,
penalties and like are assessed), and
	 
	 	(iii)	 	
with respect to any such Taxes or fees
(including any associated interest, penalties and the like)
assessed in respect of time periods between the Effective Date
and the date of the Transfer, (a) Equant will bear the
proportion that reflects the ICNO’s share of overall
in-Country revenues as SITA ICNO Costs under Clause 15.1, and
(b) SITA SC (or the applicable SITA Group Company) will bear
the proportion that reflects the non-ICNO share of overall
in-Country revenues.

	 	 	 	 
	 	(f)	 	
Taxes and Procedures Relating to Taxes

	 	 	 	 
	 	(i)	 	
This Clause 16.4(f) will apply to any
Restructuring Costs or Material Financial Detriment Costs that
are Taxes.
	 
	 	(ii)	 	
Interaction with Tax Authorities and Appointment of Advisors

	 	 	 	 
	 	(A)	 	
The principal objective of the
Parties is to effect Transfers in accordance with the
principles under Clause 3. Consistent with the
foregoing, the Parties will co-operate with each other
and take commercially reasonable actions in respect of
a Transfer in order to effect the Transfer in a way
that is Cost Efficient as well as consistent with
Clause 6 of this Agreement. SITA SC (or the applicable
SITA Group Company) shall be responsible for the
appointment of the tax advisors for this purpose, but
shall consult with Equant prior to their appointment.
Where it is necessary to obtain a ruling from, or to
interact with, the relevant tax authorities, SITA SC
(or the applicable SITA Group Company) shall lead any
such activity. SITA SC (or the applicable SITA Group
Company) shall consult with Equant prior to undertaking
any action or interaction with respect to such tax
authorities, will keep Equant informed of any
developments in these regards, and will permit Equant
to attend any meetings with such tax authorities unless
such attendance could reasonably be expected to
adversely affect or delay the obtaining of a favourable
result with such tax authorities.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
45	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(B)	 	
The procedures in Clause
16.4(f)(ii)(C) will apply in respect of Taxes which are
Restructuring Costs and/or Material Financial
Detriments. Where such procedures are not followed,
Equant will not be liable for any resulting increase in
Restructuring Costs or Material Financial Detriments.
Each Party’s employees and advisors receiving copies of
information provided by the other Party in accordance
with the procedures below will sign a specific
confidentiality agreement reasonably designated by such
Party.
	 
	 	(C)	 	
Each Party agrees to follow the
procedures set forth below regarding any potential Tax
liability arising out of a Transfer for which Equant is
obligated to reimburse SITA SC under this Clause 16
(the “PTL”).

	 	 	 	 
	 	(1)	 	
At the outset of
identifying and analysing any PTLs in a Country
arising from a Transfer, the Joint Task Force
will prepare a request letter with the background
information and a list of questions to be sent by
SITA SC (or the applicable SITA Group Company) to
seek advice from tax advisors to SITA SC (or the
applicable SITA Group Company) and Equant on the
risk of any PTLs arising that are Restructuring
Costs and/or Material Financial Detriments,
together with advice on what steps are possible
to increase the Cost Efficiency of the Transfer.
SITA SC (or the applicable SITA Group Company) or
Equant, as applicable, will provide copies of the
relevant documentation in its possession to the
tax advisor (with copy to the other Party) as
reasonably necessary to enable the tax advisor to
prepare his advice. If SITA SC (or the
applicable SITA Group Company) or Equant becomes
aware of new information relevant to the Tax
treatment of the Transfer, such Party will
disclose this to the tax advisor reasonably
promptly (with a copy to the other Party) and
request an update to the advice accordingly.
	 
	 	(2)	 	
Both initially (upon
receipt of the advice under Clause
16.4(f)(ii)(C)(1)) and on an on-going basis, with
respect to any PTL arising out of a Transfer that
may be Restructuring Costs and/or Material
Financial Detriments or are associated with a
current or prospective Transfer, each Party shall
disclose to the other Party material matters in
its knowledge that may affect such PTL, and,
where requested, shall provide copies of relevant
supporting advice from outside advisors. Where
the Parties seek joint advice (including the
advice under Clause 16.4(f)(ii)(C)(1) above),
each Party shall give the other Party a
reasonable opportunity to review and comment in
draft on any written correspondence (including
electronic mail) to be sent to such advisor
(other than communications that are not
substantive in nature), and will give the other
Party reasonable advance notice of any meetings
or substantive telephonic conversations with such
outside advisors to permit the other Party or its
representatives to attend and reasonably
participate in such meetings or conversations.
Either Party may request the advice of the joint
tax advisor.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
46	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(3)	 	
SITA SC (or the
applicable SITA Group Company) or Equant, as
applicable, will permit the other Party the
opportunity to review and comment in advance on
any communication (including electronic mail) to
be sent to a Tax authority related to a PTL that
is a Restructuring Cost and/or Material Financial
Detriment Cost or is made in anticipation of a
current or prospective Transfer. SITA SC (or the
applicable SITA Group Company) or Equant, as
applicable, shall provide the other Party
promptly with copies of any correspondence
(including electronic mail) to or from, and will
promptly inform such other Party of any oral
communications with, a Tax authority related to a
PTL that are Restructuring Costs or Material
Financial Detriments or are made in anticipation
of a current or prospective Transfer.
	 
	 	(4)	 	
SITA SC (or the
applicable SITA Group Company) and Equant will
confer on relevant aspects of any issues prior to
any discussion with the Tax authority, and will
take reasonable steps and good faith positions
under applicable Tax law in order to optimise the
Cost Efficiency of a Transfer.
	 
	 	(5)	 	
SITA SC (or the
applicable SITA Group Company) will promptly
provide a copy to Equant of any notice of a
proposed assessment, a claim in an audit by a Tax
authority, or an administrative or judicial
proceeding which is likely to give rise to an
obligation on Equant to reimburse SITA SC (or the
applicable SITA Group Company) in respect of a
PTL.
	 
	 	(6)	 	
If it appears that a Tax authority is seeking to
impose a PTL on SITA SC (or the applicable SITA
Group Company) which may be deemed to be a
Restructuring Cost or a Material Financial
Detriment, SITA SC shall have the right to lead
(including with respect to negotiating,
litigating, compromising or settling) any
proceeding relating to such PTL. If SITA SC (or
the applicable SITA Group Company) elects to so
lead such proceeding, it will deal with the
applicable Tax authorities; provided that SITA
SC (or the applicable SITA Group Company) will
request in advance instructions from Equant as
to the dealings with the applicable Tax
authorities. SITA SC (or the applicable SITA
Group Company) will provide details, relevant
facts, history and circumstances of the issue
and will specify a reasonable deadline for
Equant to respond with instructions (which shall
generally be no less than ten (10) Business Days
unless the circumstances reasonably dictate
otherwise). Equant’s instructions may relate
to, among other things, strategy, direction,
positions, arguments and settlement, and will
reflect good faith positions under the relevant
Tax laws consistent with the historic positions
and status of SITA SC (or the applicable SITA
Group Company) as known to Equant. If SITA SC
(or the applicable SITA Group Company) follows
such instructions of Equant, or if Equant

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
47	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	 	 	
does not give any such instructions to SITA SC
(or the applicable SITA Group Company) by the
applicable deadline, then Equant shall be
responsible and reimburse SITA SC (or the
applicable SITA Group Company) for the Tax
liabilities resulting from the PTL imposed on
SITA SC (or the applicable SITA Group Company)
in such proceeding, provided, however, that
Equant shall not be responsible for any other
Tax liabilities imposed on SITA SC (or the
applicable SITA Group Company) in connection
with such proceeding or otherwise. If SITA SC
(or the applicable SITA Group Company) does not
follow such instructions of Equant, SITA SC (or
the applicable SITA Group Company) will be
responsible for any increase in the actual Tax
liabilities resulting from such proceeding.
	 
	 	(7)	 	
Alternatively, SITA SC may, in its sole and
absolute discretion, permit Equant to fully
control and lead (including with respect to
negotiating, litigating, compromising or
settling) a proceeding relating to any PTL and
to deal with the applicable Tax authorities. In
this case, Equant shall be responsible and
reimburse SITA SC for all actual Tax liabilities
imposed on SITA SC resulting from such PTL,
provided that Equant shall not be responsible
for any other tax liabilities imposed on SITA SC
not in respect of the PTL.

	 	 	 
	17.	 	
CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS
	 
	17.1	 	
Confidentiality of Agreement
	 
	 	 	
Except as provided in Clause 17.5, no Party shall disclose to any third party this Agreement, the Strategic
Relationship Umbrella Agreement, or the Transition and Management
Agreement, or any of the terms and conditions or other provisions
contained in any of them (including any schedules or other attachments to
any of them) except:

	 	 	 	 
	 	(a)	 	
with the prior written consent of the other Party;
	 
	 	(b)	 	
only as required by applicable Law and then only to the
extent required by such Law; or
	 
	 	(c)	 	
pursuant to procedures specified in this Agreement (including
in relation to regulatory or Tax matters under Clause 6 or 16.4(e)).

	 	 	 
	17.2	 	
Public Announcements
	 
	 	 	
Except as provided under Clause 17.5, neither Party shall make any public
announcement with respect to this Agreement, the Strategic Relationship
Umbrella Agreement, the Services Agreement, or the strategic relationship
of the Parties without the prior Consent of the other Party, provided
that either Party (or, in the case of SITA SC, a SITA Group Company) may
name the other as a customer or supplier, as applicable, and disclose the
general nature of the overall arrangement between the Parties under such
agreements. A “public announcement” under this Clause 17.2 does not
include internal communications within Equant (including Network Staff)
and SITA SC (or the applicable SITA Group Company) and/or SITA INC.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
48	 	Dated: 30 November 2001

 

 

	 	 	 
	17.3	 	
Protection of Confidential Information
	 
	 	 	
Except as provided under Clause 17.5, each Party shall, and shall cause
its Affiliates and its Affiliates’ respective directors, officers,
employees, contractors, consultants, advisors and agents to:

	 	 	 	 
	 	(a)	 	
keep confidential all Confidential Information given by one
Party (the “Disclosing Party”) to the other Party (the “Recipient”)
or otherwise obtained pursuant to this Agreement by the Recipient,
using at least the same level of care that the Recipient uses or
affords to its own Confidential Information but in no event less
than a reasonable degree of care, including maintaining reasonable
security practices against any unauthorised copying, use,
disclosure, access, damage or destruction of the Confidential
Information;
	 
	 	(b)	 	
not (except as expressly permitted) disclose any of the
Confidential Information, make copies of material containing the
Confidential Information or otherwise use the Confidential
Information except as permitted under Clause 17.4;
	 
	 	(c)	 	
safeguard the Confidential Information and comply with any
requirements specified by the Disclosing Party from time to time;
	 
	 	(d)	 	
promptly notify the Disclosing Party if the Recipient
reasonably believes or knows of any unauthorised access, copying,
use or disclosure in any form or if the Recipient is required by Law
to disclose any of the Disclosing Party’s Confidential Information;
	 
	 	(e)	 	
take all reasonable steps to enforce any obligation of
confidence imposed or required to be imposed by this Agreement; and
	 
	 	(f)	 	
give all reasonable assistance (including, if necessary, the
execution of appropriate documents to assist the Disclosing Party to
pursue any legal actions) reasonably required by the Disclosing
Party to enforce any obligation of confidence imposed or required to
be imposed by this Agreement.

	 	 	 
	17.4	 	
Use of Confidential Information

	 	 	 	 
	 	(a)	 	
Except to the extent expressly provided otherwise in this
Agreement and Schedule W of the Services Agreement, the Recipient
may only use and copy the Disclosing Party’s Confidential
Information to the extent necessary:

	 	 	 	 
	 	(i)	 	
to comply with its obligations under this Agreement;
	 
	 	(ii)	 	
to enable the Recipient to exercise its rights
under this Agreement, including obtaining any intended
benefits under this Agreement; or
	 
	 	(iii)	 	
to enable the Recipient to comply with any
applicable Law.

	 	 	 	 
	 	(b)	 	
Except to the extent expressly provided otherwise in this
Agreement and Schedule W of the Services Agreement, the Recipient
shall limit distribution of the Disclosing Party’s Confidential
Information solely on a need to know basis to (1) individuals within
its organisation (including only its employees, directors and
officers, and, in the case of Equant, Network Staff who are bound by
nondisclosure agreements pursuant to Clause 5.2(c)), and (2) the
Recipient’s professional advisors, contractors, Affiliates or
business partners who are bound by obligations of confidentiality
covering the Disclosing Party’s Confidential Information disclosed
to them that are no less protective than the terms and conditions of
this Clause 17.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
49	 	Dated: 30 November 2001

 

 

	 	 	 
	17.5	 	
Exceptions to Obligations of Confidentiality
	 
	 	 	
The burden of proving the existence of an exception to the
confidentiality obligations set out in this Clause 17.5 shall always be
on the Party seeking to avail itself of such exception, including in
dispute resolution or court proceedings brought by the Disclosing Party,
including where arbitration or court procedural rules would otherwise
impose the burden of proof on the Disclosing Party. Nothing in this
Agreement prohibits the use or disclosure by the Recipient of any
particular Confidential Information of the Disclosing Party by a Party to
the extent that:

	 	 	 	 
	 	(a)	 	
the information has become generally available public
knowledge, other than due to a of violation of this Agreement;
	 
	 	(b)	 	
based on the written advice of such Party’s legal counsel,
the disclosure is expressly required by Law but in the event of any
such proposed disclosure, such Party required to make such
disclosure shall give the Disclosing Party reasonable advance
written notice of the disclosure, including specifying the
Confidential Information) to be disclosed, the content of such
disclosure (as it realtes to such Confidential Information, and the circumstances necessitating such
disclosure. The Recipient will reasonably cooperate with the
Disclosing Party in order to minimise the amount of Confidential
Information disclosed under this Clause 17.5(b) and, if requested by
the Disclosing Party, the Recipient will seek measures protecting
such disclosure and protecting against further disclosure or any
misuse or misappropriation of such Confidential Information;
	 
	 	(c)	 	
as expressly permitted in Clause 6, 12 or 16;
	 
	 	(d)	 	
the information has been independently developed by the Party
without reference to the Confidential Information of the Disclosing
Party;
	 
	 	(e)	 	
the information has been lawfully obtained by the Party from
a third party source under no obligation of confidentiality to the
Disclosing Party, provided that such third party source itself
lawfully obtained the Confidential Information; or
	 
	 	(f)	 	
the Disclosing Party has approved in writing the particular
use or disclosure of the Confidential Information.

	 	 	 
	17.6	 	
Equitable Relief
	 
	 	 	
The Parties acknowledge that the Disclosing Party will be entitled to
equitable relief or appropriate court order(s) against the Recipient (in
addition to any other rights available under this Agreement or at law)
from any court of competent jurisdiction for any breach or threatened
breach by the Recipient of its obligations under this Clause 17.
	 
	17.7	 	
Period of Confidentiality
	 
	 	 	
Each Party’s obligations with respect to Confidential Information
disclosed under this Agreement will survive for five (5) years after the
date of expiry or termination of this Agreement.
	 
	18.	 	
DATA PROTECTION
	 
	18.1	 	
To the extent that Equant is a Data Processor of SITA SC’s Personal Data,
Equant will act only on the instructions of SITA SC in the processing of
SITA SC’s Personal Data and will comply with obligations equivalent to
those imposed on SITA SC as Data Controller by the

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
50	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
seventh principle of the Data Protection Act 1998 (the “Act”). The
definitions used in this Clause 18.1 shall have the meanings set out in
the Act.
	 
	18.2	 	
To the extent that SITA SC is a Data Processor of Equant’s Personal Data,
SITA SC will act only on the instructions of Equant in the processing of
Equant’s Personal Data and will comply with obligations equivalent to
those imposed on Equant as Data Controller by the seventh principle of the
Act. The definitions used in this Clause
18.2 shall have the meanings set out in the Act.
	 
	19.	 	
WARRANTIES
	 
	19.1	 	
Representations and Warranties by Equant
	 
	 	 	
Equant represents and warrants at all relevant time that:

	 	 	 	 
	 	(a)	 	
Equant will perform the services to be provided under this
Agreement in a professional and diligent manner, in accordance with
generally accepted industry standards;
	 
	 	(b)	 	
Equant will commit sufficient resources and suitably
qualified, trained and experienced personnel to the performance of
this Agreement;
	 
	 	(c)	 	
Equant will perform its obligations under this Agreement with
promptness and diligence;
	 
	 	(d)	 	
Equant’s signing, delivery and performance of this Agreement
will not:

	 	 	 	 
	 	(i)	 	
violate any relevant judgement, order or decree; or
	 
	 	(ii)	 	
violate, breach, constitute a default under, or
result in the termination, cancellation or acceleration
(whether after the giving of notice, lapse of time, or both)
of any material contract (A) by which Equant is bound or (B)
under which a charge, pledge or lien is created over any of
the assets (whether tangible or intangible) owned by Equant;

	 	 	 	 
	 	
(e)
	 	Equant has the requisite power and authority to enter into
this Agreement and to carry out its obligations as contemplated by
this Agreement; and
	 
	 	
(f)
	 	Equant shall use commercially reasonable efforts to perform
its obligations under this Agreement in compliance with all
applicable Laws, enactments, orders, regulations and other similar
instruments.
	 
	19.2	Representations and Warranties by SITA SC
	 
	 	SITA SC represents and warrants at all relevant times that:

	 	 	 	 
	 	(a)	 	
SITA SC (or the applicable SITA Group Company ) will perform
the services to be provided under this Agreement in a professional
and diligent manner, in accordance with generally accepted industry
standards;
	 
	 	(b)	 	
SITA SC (or the applicable SITA Group Company) will commit
sufficient resources and suitably qualified, trained and experienced
personnel to the performance of this Agreement;
	 
	 	(c)	 	
SITA SC (or the applicable SITA Group Company) will perform
its obligations under this Agreement with promptness and diligence;

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
51	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(d)	 	
SITA SC’s signing, delivery and performance of this Agreement
will not:

	 	 	 	 
	 	(i)	 	
violate any relevant judgement, order or decree; or
	 
	 	(ii)	 	
violate, breach, constitute a default under, or
result in the termination, cancellation or acceleration
(whether after the giving of notice, lapse of time, or both)
of, any material contract (A) by which SITA SC (or the
applicable SITA Group Company) is bound or (B) under which a
charge, pledge or lien is created over any of the assets
(whether tangible or intangible) owned by SITA SC (or the
applicable SITA Group Company) ;

	 	 	 	 
	 	(e)	 	
SITA SC (or the applicable SITA Group Company) has the
requisite power and authority to enter into this Agreement and to
carry out its obligations as contemplated by this Agreement; and
	 
	 	(f)	 	
SITA SC (or the applicable SITA Group Company) shall use
commercially reasonable efforts to perform its obligations under
this Agreement in compliance with all applicable Laws, enactments,
orders, regulations and other similar instruments.

	 	 	 
	19.3	 	
No Additional Representations and Warranties
	 
	 	 	
Except as otherwise provided for in this Agreement, there are no express
or implied warranties, representations, undertakings, or conditions
(statutory or otherwise) given by Equant or SITA SC (or the applicable
SITA Group Company), including the implied warranties of satisfactory
performance and fitness for a particular purpose. Nothing in this Clause
19.3 shall purport to limit any Party’s liability for fraudulent
misrepresentation.
	 
	20.	 	
INDEMNITIES
	 
	20.1	 	
Indemnity by Equant
	 
	 	 	
Equant shall indemnify, defend and hold harmless SITA SC and the SITA
Group Companies and officers, directors, employees, consultants,
contractors, agents, successors and assigns of each of them, from any and
all Losses arising from, or in connection with, any of the following:

	 	 	 	 
	 	(a)	 	
any wilful or deliberate serious and significant breach by
Equant; or
	 
	 	(b)	 	
except for Claims for which this Agreement provides SITA SC
(or the applicable SITA Group Company) is to indemnify Equant, any
Claim made by a third party (including a customer of Equant) against
SITA SC (or the applicable SITA Group Company) arising out of or in
connection with the services Equant provides to SITA SC (or the
applicable SITA Group Company) from time to time under the
Agreement. To the extent that the Claim brought by such third party
is determined to arise out of any breach or other actionable cause
by SITA SC (or the applicable SITA Group Company) against Equant
under this Agreement, nothing in this Clause 20.1(b) shall preclude
Equant from directly seeking damages from SITA SC in such regard
subject to the terms and conditions of this Agreement.

	 	 	 
	20.2	 	
Indemnity by SITA SC
	 
	 	 	
SITA SC shall indemnify, defend and hold harmless Equant and its
officers, directors, employees, consultants, contractors, agents,
successors, and assigns, from any and all Losses arising from, or in
connection with, any of the following:

	 	 	 	 
	 	(a)	 	
any wilful or deliberate serious and significant breach by
SITA SC; or

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
52	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(b)	 	
except for Claims for which this Agreement provides that
Equant is to indemnify SITA SC (or the applicable SITA Group
Company), any Claim made by a third party (including a customer of
SITA SC or the applicable SITA Group Company) against Equant arising
out of or in connection with the services SITA SC (or the applicable
SITA Group Company) provides Equant under this Agreement from time
to time. To the extent that the Claim brought by such third party
is determined to arise out of any breach or other actionable cause
by Equant against SITA SC (or the applicable SITA Group Company)
under this Agreement, nothing in this Clause 20.2(b) shall preclude
SITA SC from directly seeking damages from Equant in such regard
subject to the terms and conditions of this Agreement.

	 	 	 
	20.3	 	
Indemnification Procedures
	 
	 	 	
Where this Agreement provides that a Party (the “Indemnitor”) is to
indemnify, defend or hold harmless (as applicable) the other Party (or,
in the case of SITA SC, the applicable SITA Group Company) (the
“Indemnitee”) against a Claim (other than with respect to a Claim that
involves Taxes or a Claim initiated by a Party hereto), the procedures
set forth below shall apply. A failure of the Indemnitee to follow such
procedures shall not affect the Indemnitor’s obligations under this
Agreement; provided that the Indemnitor will be excused from its
obligations under this Clause 20.3 to the extent that the Indemnitee’s
failure materially prejudices the Indemnitor’s ability to defend or
settle the Claim.

	 	 	 	 
	 	(a)	 	
The Indemnitee shall notify the Indemnitor in writing and in
reasonable detail of a Claim promptly following receipt by the
Indemnitee of notice of such Claim. The Indemnitor will reimburse
the Indemnitee for the reasonable fees and expenses of the
Indemnitee’s counsel for the period between the Indemnitee’s receipt
of notice of the Claim until the time, if any, that the Indemnitor
assumes control of the defence of such Claim pursuant to Clause
20.3(c). As far as reasonably practicable, the Indemnitee will also
give the Indemnitor prompt notice of any event which it reasonably
believes is likely to give rise to a Claim which the Indemnitor
would be obligated to indemnify under this Agreement
	 
	 	(b)	 	
The Indemnitee shall deliver to the Indemnitor promptly
following the Indemnitee’s receipt thereof copies of all notices
received by the Indemnitee relating to such Claim.
	 
	 	(c)	 	
If the Indemnitor notifies the Indemnitee within a reasonable
time that the Indemnitor is assuming the defence of the Claim at the
Indemnitor’s expense, the Indemnitee agrees that (i) the Indemnitor
will have the exclusive right to defend, investigate, litigate,
compromise and settle the Claim (including the selection of
attorneys), (ii) the Indemnitor may make any settlement or
compromise of any Claim that only involves the payment of money
without any requirement to seek Consent from the Indemnitee. The
Indemnitor shall make no settlement or compromise of a Claim that
could directly or indirectly adversely impact the Indemnitee in any
way (including by way of example an admission of liability or a
promise of future conduct or of the avoidance of certain conduct),
without the Indemnitee’s prior Consent.
	 
	 	(d)	 	
If the Indemnitor assumes the defence of the Claim under
Clause 20.3(c), the Indemnitee shall, at the request of the
Indemnitor, provide the Indemnitor with all reasonable assistance
and co-operation for the purpose of contesting any Claim brought
against the Indemnitee. The Indemnitor shall promptly reimburse the
Indemnitee for the Indemnitee’s reasonable costs of providing such
assistance and co-operation.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
53	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(e)	 	
If the Indemnitor does not assume the defence of a Claim
under Clause 20.3(c) within a reasonable time after the Indemnitee
has notified the Indemnitor of a Claim under Clause 20.3(a), the
Indemnitee shall have the right to defend, investigate, litigate,
compromise or settle such Claim on behalf of, and for the account
of, Indemnitor if it sends a further written notice to Indemnitor’s
General Counsel that it intends to do so and the Indemnitor does not
notify the Indemnitee that Indemnitor is assuming the defence of the
Claim under Clause 20.3(c) within ten (10) days. Except where the
Indemnitee retains the defence of the Claim under the preceding
sentence, the Indemnitee shall not make any admission with respect
to, or agree to settle or compromise, any Claim or take any other
action which may be prejudicial to the defence or settlement of any
Claim, without the Indemnitor’s prior Consent after disclosure to
the Indemnitor of the relevant circumstances.

	 	 	 
	21.	 	
LIABILITY AND LIMITATION OF LIABILITY
	 
	21.1	 	
Limitations of Liability for Reimbursement of Restructuring Costs and
Material Financial Detriments Costs
	 
	 	 	
In no event will Equant’s maximum liability for all Restructuring Costs
and Material Financial Detriment Costs exceed, in the aggregate, five
hundred million U.S. Dollars ($500,000,000).
	 
	21.2	 	
Damages
	 
	 	 	
A breaching Party shall be liable to a non-breaching Party only for any
direct loss incurred by the non-breaching Party as a result of the
breaching Party’s failure to perform its obligations in accordance with
this Agreement. For the avoidance of doubt, neither Party shall be
liable for indirect or consequential loss or damage. Direct loss shall
not include any of the following:

	 	 	 	 
	 	(a)	 	
loss of profits, loss of over recovery, loss of business,
loss of revenues, loss of goodwill or loss of or failure to make any
anticipated savings;
	 
	 	(b)	 	
any losses arising in connection with any claims or other
demands brought against a non-breaching Party by any third party
pursuant to any commitment to such third party by or on behalf of
the non-breaching Party and arising out of any breach of this
Agreement; and/or
	 
	 	(c)	 	
indirect or consequential loss or damage.

	 	 	 
	21.3	 	
Limitations of Liability

	 	 	 	 
	 	(a)	 	
The Parties do not exclude or limit liability for:

	 	 	 	 
	 	(i)	 	
death or personal injury caused by negligence of
a Party, or its employees or sub-contractors;
	 
	 	(ii)	 	
real and tangible property claims caused by the
negligence of a Party, including its employees or
sub-contractors;
	 
	 	(iii)	 	
any Claim for which a Party must indemnify the
other Party pursuant to Clause 20 of this Agreement;
	 
	 	(iv)	 	
any Party’s failure to claim any invoiced amount
validly owing to the other Party for its performance under
this Agreement (including amounts owed for Services rendered,
and not including claims of damages or other liabilities
relating owing or alleged to be owing due to a breach of this
Agreement);

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
54	 	Dated: 30 November 2001

 

 

	 	 	 	 
	 	(v)	 	
fraudulent misrepresentation;
	 
	 	(vi)	 	
any breach of any obligations implied by Section
12 of the Sale of Goods Act 1979 (to the extent not
inconsistent with an express warranty set out in this
Agreement) or Section 20 of the Supply of Goods and Services
Act 1982;
	 
	 	(vii)	 	
any Claim relating to infringement of Intellectual Property Rights;
	 
	 	(viii)	 	
any Claim relating to breach of a Party’s confidentiality
obligations as set out in Clause 17 of this Agreement;
	 
	 	(ix)	 	
to the extent a limitation is not permitted by Law; or
	 
	 	(x)	 	
wilful or deliberate serious and significant breach.

	 	 	 	 
	 	(b)	 	
Except as expressly provided in Clause 21.1 and 21.3(a), the
maximum liability of either Party to the other for all Claims
arising under or in connection with this Agreement, regardless of
the form of action (whether in contract, tort or otherwise), shall
in no event exceed, in the aggregate, two hundred fifty million U.S.
Dollars ($250,000,000).

	 	 	 
	21.4	 	
Duty to Mitigate
	 
	 	 	
Each Party shall have a duty to mitigate damages for which the other
Party is or may be responsible.
	 
	22.	 	
FORCE MAJEURE
	 
	22.1	 	
Neither Party Liable
	 
	 	 	
Neither SITA SC nor Equant will be liable for any default or delay in
performance of its obligations under this Agreement if, and to the
extent, the default or delay is caused, directly or indirectly, by a
Force Majeure Event.
	 
	22.2	 	
Period of Delay
	 
	 	 	
When a Force Majeure Event has occurred, the Party whose performance is
delayed will be excused from further performance of the obligations
affected for as long as the circumstances prevail and such Party
continues to use commercially reasonable efforts to recommence
performance whenever and to whatever extent possible without delay. Such
Party will promptly notify the other Party of the Force Majeure Event
describing at a reasonable level of detail the circumstances causing such
delay and the expected duration thereof. The Party in delay will treat
the other Party equally with any similarly situated third parties
(including the Party in delay’s Affiliates) in respect of similar
services that are provided during a Force Majeure Event.
	 
	23.	 	
DISPUTE RESOLUTION
	 
	23.1	 	
Dispute Resolution Procedure
	 
	 	 	
Except to the extent expressly otherwise provided in this Agreement, any
dispute between the Parties arising out of or relating to this Agreement,
including with respect to the interpretation of any provision of this
Agreement and with respect to the performance by either Party, shall be
resolved using the dispute resolution procedures specified in Clause 8 of
the Strategic Relationship Umbrella Agreement, which are hereby
incorporated by reference into this Agreement.

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
55	 	Dated: 30 November 2001

 

 

	 	 	 
	23.2	 	
Continued Performance
	 
	 	 	
SITA SC and Equant shall continue to perform their respective obligations
under this Agreement pending the resolution of a dispute to the extent it
is reasonable to do so given the nature of the dispute.
	 
	24.	 	
TAXES; PAYMENT AND REIMBURSEMENT PROCEDURES
	 
	24.1	 	
Taxes
	 
	 	 	
All amounts payable (including for this purpose any deemed charges) under
this Agreement are exclusive of any taxes that may be imposed on such
amounts payable in accordance with applicable Law, including any sales
tax, value-added tax, or other similar taxes imposed by any country,
state, department, city, locality or other taxing authority. All such
taxes, with the exception of any taxes imposed on income (including any
withholding tax on income), shall be paid by the Party responsible for
paying such amounts payable. The Parties will provide any applicable tax
invoices, certificates or deduction of tax or other documents as required
in connection with such taxes.
	 
	24.2	 	
Payment and Reimbursement Procedures
	 
	 	 	
The following Clauses will apply to any reimbursements or other payments
made by one Party to the other Party (including, with respect to SITA SC
in either case, the applicable SITA Group Company) except to the extent a
Clause elsewhere in this Agreement provides otherwise.

	 	 	 	 
	 	(a)	 	
Reimbursements
	 
	 	 	 	
All amounts claimed for reimbursement will be net of any applicable
discounts, rebates or other credits paid or due to the Party (or,
in the case of the SITA SC, the applicable SITA Group Company)
claiming the reimbursement in respect of such claimed amounts. If
the ultimate liability actually incurred by the Party claiming
reimbursement (or, in the case of SITA SC, the applicable SITA
Group Company) is less or greater than the amount claimed for
reimbursement, such Party (or the applicable SITA Group Company)
will promptly submit the resulting adjustment for inclusion in
subsequent calculations of similar reimbursements (or, if there are
no further similar reimbursements expected in the foreseeable
future, to be applied to other amounts payable by the other Party).
Each Party will accumulate claims for quarterly reimbursement,
except that if accumulated claims total at least twenty-five
thousand U.S. Dollars ($25,000) such Party may claim them at such
time.
	 
	 	(b)	 	
“Incur”
	 
	 	 	 	
Where this Agreement refers to an amount being “incurred” by a
Party (or any of its variants), the Parties agree that the term
“incurred” covers (i) costs or expenses that are actual payments
made to other parties by such Party, and (ii) accounting costs that
are booked but not expended by such Party.
	 
	 	(c)	 	
Disputed Amounts
	 
	 	 	 	
A Party may withhold a disputed amount that is invoiced to it by
the other Party or that is otherwise payable to the other Party
under this Agreement provided that: (i) the basis for such Party
disputing that it owes the amount is in good faith; (ii) such Party
promptly notifies the other Party that it is disputing the amount
including specifying its reason(s); (iii) such Party diligently
pursues resolution of the dispute

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
56	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
with the other Party; (iv) such Party pays all undisputed amounts
on the invoice when due; and (v) such Party promptly pays any such
disputed amounts upon a determination that they are due. If a
Party disputes in good faith an amount already paid because of
learning information subsequent to the payment that such Party did
not know at the time of payment, such Party may withhold such
amount from other amounts payable to the other Party provided such
Party follows the procedures of this Clause 24.2(c) (including
providing the notice under Clause 24.2(c)(ii) in advance of
withholding such amount).
	 
	(d)	 	
Payment Due Date
	 
	 	 	
Except as otherwise agreed by the Parties, each Party will pay
amounts due to the other Party within thirty (30) days following
such Party’s receipt of the other Party’s relevant invoice or when
such amounts become due under this Agreement, as applicable.

	 	 	 
	25.	 	
LEGAL
	 
	 	 	
The Parties will enforce their rights and meet their obligations under
this Agreement in accordance with applicable Law and, as legally possible
and commercially reasonable, in a way that improves Cost Efficiencies.
	 
	26.	 	
AGREEMENT NON-TERMINABLE
	 
	 	 	
The Parties expressly agree that neither Party will have any right to
terminate this Agreement. This Agreement will solely terminate at the
expiration of the Term, unless the Parties mutually agree otherwise.
Each Party acknowledges that for any breach of this Agreement by such
Party, the other Party will have such remedies as are available at law or
in equity for such breach (subject to the terms and conditions of this
Agreement) other than the right to terminate this Agreement or to seek to
have the arbitrator(s) or court terminate this Agreement. The
arbitrator(s) shall not have the power to terminate this Agreement prior
to the expiration of the Term.
	 
	27.	 	
GENERAL
	 
	27.1	 	
Governing Law
	 
	 	 	
The construction, performance, validity and remedies for breach of this
Agreement shall be governed by English law.
	 
	27.2	 	
Notices
	 
	 	 	
A Party notifying or giving notice under this Agreement will give notice:

	 	 	 
	(a)	 	
in writing and in the English language;
	 
	(b)	 	
by (i) hand delivery or sent by prepaid first class post,
(ii) air courier delivery service to that address, or (iii)
electronic mail or facsimile (only if confirmed by telephone); and
	 
	(c)	 	
addressed to the other Party to the attention of the
designated person(s) set out below or as altered by notice given in
accordance with this Clause 27.2:
	 
	 	 	
For SITA SC:   Secretary General

                         Société Internationale de Télécommunications Aéronautiques S.C .

                         26, Chemin de Joinville

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
57	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
P.O. Box 31

1216 Cointrin – Geneva

Switzerland

	 
	 	 	
Copy to:

General Counsel

Société Internationale de Télécommunications Aéronautiques S.C .

26, Chemin de Joinville

P.O. Box 31

1216 Cointrin – Geneva

Switzerland
	 
	 
	For Equant:	 	
Vice President and General Manager SITA Account

Equant N.V.

400 Galleria Parkway, S.E.

Atlanta GA 30339-5980

United States of America
	 
	 	 	
Copy to:
	 	 	
General Counsel

Equant N.V.

215-217 Bath Road

Slough, Berkshire SL1 4AA

England, United Kingdom

+44 (208) 321 4602 (voice)

+44 (207) 734 5768 (facsimile)

	 	 	 
	27.3	 	
Service of Notice

	 	 
		A notice given in accordance with Clause 27.2 is deemed received and is
effective:
	 
		(a)      if hand delivered to the other Party, on the date of
delivery;
	 
		(b)      if sent by prepaid first-class post, five (5) Business Days
after the date of posting;
	 
		(c)      if sent by courier delivery service, electronic mail or
facsimile, on the date of delivery.
	 
		Except for notices sent by facsimile, in each instance the Party
delivering such notice shall for the convenience of the Party or Parties
to which such notice is delivered also transmit such notice by facsimile;
provided, however, that the failure to do so shall not affect either the
fact or the date and time of delivery of such notice.

	 	 	 
	27.4		Relationship of Parties

	 	 	 
	(a)	 	
Nothing in this Agreement or any circumstances associated
with it or its performance shall give rise to any relationship of
agency, partnership or employer and employee between the Parties or
between a Party and another Party’s agents, employees or
sub-contractors.
	 
	(b)	 	
Except as expressly authorised in this Agreement, neither
Party shall have any authority to act or make representations on
behalf of the other Party, nor to create

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
58	 	Dated: 30 November 2001

 

 

	 	 	 
	 	 	
contractual liability to a third party on behalf of (or otherwise
contractually bind) the other Party.

	 	 	 
	27.5	 	
Waiver

	 	 	 
	(a)	 	
If a Party has a right arising from the other Party’s
failure to comply with an obligation under this Agreement and delays
in exercising or does not exercise that right then that delay in
exercising or failure to exercise is not a waiver of that right or
any other right.
	(b)	 	
A waiver by a Party of a right in one instance does not
constitute a waiver of that right or any other right in any other
instance, without regard to the similarity of circumstances, unless
the Party specifically waives such right or other right in the
second instance.
	(c)	 	
Any waiver of a right by a Party must be in writing in a
notice transmitted as provided in Clause 27.1 executed by the Party
making such waiver.

	 	 	 
	27.6	 	
Entire Agreement and Variation

	 	 	 
	(a)	 	
This Agreement, the Services Agreement, the Strategic
Relationship Umbrella Agreement and the Account Management Agreement
form the strategic relationship among the Parties and:

	 	 
	(i)	 constitute the entire agreement between the
Parties as to the strategic relationship and this transaction;
and
	 
	(ii)	 the foregoing agreements replace and supersede
any prior understanding or agreement between the Parties in
respect of the strategic relationship and this transaction and
any prior draft, statement, undertaking, agreement,
understanding, condition, warranty, indemnity or
representation imposed, given or made by a Party (including
the JV Agreement and the HOA) prior to the Effective Date
(collectively, the ‘Pre-Contractual Statements’) and no Party
shall have any claim or right of action in respect of the
Pre-Contractual Statements except in respect fraudulent
misrepresentation. For the avoidance of doubt, no
Pre-Contractual Statements may be used in the interpretation
or construction of this Agreement.

	 	 	 
	(b)	 	
 This Agreement may only be amended in writing when signed by
Parties concerned with each particular amendment.
	 
	(c) 	 	
Nothing in this Clause 27.6 purports to exclude any Party’s
liability for fraudulent misrepresentation.

	 	 	 
	27.7	 	
Priority of Documents
	 
	 	 	
If there is any conflict between any of the express terms of this
document, the Schedules, the Appendices, and any document referred to in
or incorporated into this Agreement, the order of priority for the
purposes of construction is:

	 	 	 
	(a)	 	
the terms and conditions of this Agreement, and Schedule A
(‘Glossary’), Schedule B (‘IT JTF Guidelines’), Schedule C (‘Central
Staff Countries’), Schedule D (‘Set Amounts’), Schedule F (‘Equant
Asset Funding Arrangement’), Schedule G (‘Network Access
Agreement’), Schedule H (‘HR Administrative Services Arrangement’),
and Schedule I (‘Workshops’); and

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
59	 	Dated: 30 November 2001

 

 

	 	 	 
	(b)	 	
Schedule E (‘IT Services’).

	 	 	 
	27.8	 	Limitations Period
	 
	 	 	Unless applicable Law forbids contractual waiver or limitation, neither
Equant nor SITA SC may bring a legal action or initiate dispute
resolution under this Agreement:

	 	 	 
	(a)	 	
in the case of Claims arising directly between the Parties
that are not based upon a third-party Claim against a Party, more
than two (2) years after the cause of action came to the actual
knowledge of the Party; or
	 
	(b)	 	
in the case of a third-party Claim asserted against a Party,
more than two (2) years after the third party concerned has
successfully asserted such Claim against the relevant Party.

	 	 	 
	27.9	 	
Third Party Beneficiaries

	 	 	 
	(a)	 	
Nothing in this Agreement, express or implied, is intended to
confer upon any person other than Equant or SITA SC, or their
respective successors or permitted assignees any rights or remedies
under or by reason of this Agreement.
	 
	(b)	 	
The Parties do not intend that any term of this Agreement
should be enforceable by virtue of the Contracts (Rights of Third
Parties) Act 1999 by any person who is not a Party to this
Agreement.

	 	 	 
	27.10	 	
Assignment

	 	 	 
	(a)	 	
A Party may not assign its rights or transfer its obligations
under this Agreement without the prior written consent of the other
Party, except that

	 	 	 
	(i)	 	
no consent is required in the case of assignment
by a Party to one of its majority owned subsidiaries; and
	 
	(ii)	 	
no consent is required for Equant to assign its
rights and transfer its obligations under this Agreement to
the successor entity of the merger of Equant and Global One.

	 	 	 
	(b)	 	
Any attempt by a Party to assign its rights or transfer its
obligations under this Agreement in violation of Clause 27.10(a) is
null and void.

	 	 	 
	27.11	 	
Counterparts
	 
	 	 	
This Agreement may be executed in several counterparts, each of which
shall be deemed an original and all of which taken together will
constitute one single agreement between the Parties.
	 
	27.12	 	
Cumulative Rights
	 
	 	 	
A right, power, remedy, entitlement or privilege given or granted to a
Party under this Agreement is cumulative with, without prejudice to and
not exclusive of any other right, power, remedy, entitlement or privilege
granted or given under this Agreement or by Law.
	 
	27.13	 	
Reading Down
	 
	 	 	
If a provision of this Agreement is reasonably capable of an
interpretation which would make that provision valid and enforceable and
an alternative interpretation that would make it unenforceable, illegal,
invalid or void then, so far as is possible, that provision will be

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
60	 	Dated: 30 November 2001

 

 

	 	 	 
			interpreted or construed, taking into account (i) the objectives, scope
and purposes set out in Clause 2 of the Strategic Relationship Umbrella
Agreement; and (ii) the fact that the commercial intentions of this
Agreement are based on symmetry and balance among the Parties, to be
limited and read down to the extent necessary to make it valid and
enforceable.

	 	 	 
	27.14	 	
Severability
	 
	 	 	
If any provision is deemed invalid, illegal or unenforceable, then the
remainder of this Agreement shall stand; provided, however, that the
Parties shall negotiate in good faith to adjust the terms of this
Agreement to ensure that the Parties original commercial intentions are
achieved as much as reasonably possible. The commercial intentions of
this Agreement are based on symmetry and balance between the Parties.
	 
	27.15	 	
Contra Proferentem
	 
	 	 	
No rule of construction will apply in the interpretation of this
Agreement to the disadvantage of one Party on the basis that such Party
put forward or drafted this Agreement or any provision of this Agreement.
	 
	27.16	 	
Costs
	 
	 	 	
Each Party shall bear its own legal and other costs and expenses of, and
incidental to, the preparation, execution and completion of this
Agreement and of any related documentation.
	 
	27.17	 	
Survival of Terms
	 
	 	 	
The following terms will survive the termination or expiry of this
Agreement:

	 	 	 
	(a)	 	 Clause 1 (Definitions and Interpretation);
	 
	(b)	 	 Clause 3 (General Principles);
	 
	(c)	 	 Clause 13 (Premises Matters);
	 
	(d)	 	 Clause 15 (SITA ICNO Costs and Cost Shared Costs);
	 
	(e)	 	 Clause 16 (Reimbursement of Restructuring Costs and Material
Financial Detriment Costs);
	 
	(f)	 	 Clause 17 (Confidentiality);
	 
	(g)	 	 Clause 20 (Indemnities);
	 
	(h)	 	 Clause 21 (Liability);
	 
	(i)	 	 Clause 23 (Dispute Resolution);
	 
	(j)	 	 Clause 24 (Taxes, Payment
& Reimbursement Procedures);
	 
	(k)	 	 Clause 26 ; and
	 
	(l)	 	 Clause 27 (General).

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
61	 	Dated: 30 November 2001

 

 

	 
	EXECUTED by the Parties

	 	 	 	 	 	 	 
	SIGNED for and on behalf of
Société Internationale de

Télécommunications Aéronautiques, S.C.
 

 

 

 

 
SIGNED  for and on behalf of

Equant, N.V
	 	 	
)
)

)

)
 

)
 

)

)
 

)
 

 

 
)

	 	 	/s/ John Oliver Watson
............................................

Signature of officer 

/s/ John Oliver Watson

.............................................

Name of officer (print)
 

Direct General

.............................................

Office held

/s/ Matthew MacFarlane

.............................................

Signature of officer
 

Matthew MacFarlane

.............................................

Name of officer (print)

Vice President

Mergers & Aqcuisitions

.............................................

Office held

	 	 	 	 	 
	

	Transition and Management
Agreement

Restated Version with Amendment No. 1
(Errata)	 	
62	 	Dated: 30 November 2001

 

 

Schedule A

Attachment A-1

TMA-Specific Glossary

“Aggregated Transfers” shall have the meaning specified in Clause 16.3(b) of
this Agreement.

“Agreed Interest” shall mean the Finance Rate.

“Agreement” shall mean this Transition and Management Agreement together with
the Network Access Agreement attached hereto as Schedule G.

“Baseline Equant IT Services” shall have the meaning specified in Clause 7.3(a)
of this Agreement.

“Circuit Contract” shall mean domestic and international circuit leases

“Class A Address Block” shall mean the number 57 class A internet protocol
address block.

“Cost Efficient” shall mean cost efficient from a tax and legal perspective.

“Disclosing Party” shall have the meaning specified in Clause 17.3(a) of this
Agreement.

“Dispute Resolution Process” shall mean the procedures specified in Clause 23
of this Agreement.

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

“EAFA” shall mean the Equant Asset Funding Arrangement, as set out on Schedule
F to this Agreement.

“Effective Date” shall mean 1 July 2001.

“Equant” shall mean, at any time during the Term, Equant N.V. and/or the
applicable Equant Group Companies.

“Equant IT Services shall have the meaning specified in Clause 7.3(a) of this
Agreement.

“Escalation Notice” shall have the meaning specified in Clause 5.4(b) of this
Agreement.

“Exclusive Space” means facilities and/or premises in a building that are
exclusively used for or by Network Operations as of the Effective Date and from
time to time thereafter.

“Finance Rate” shall have the meaning specified in Schedule F to this
Agreement.

“General Services” shall mean the general management activity in respect of the
facilities and premises and provision of ancillary supporting services.

“Global Network” shall mean the Network except for the applicable SITA
In-Country Network.

“HR” shall mean human resources.

	 	 	 
	

	Transition and Management Agreement	A-1-1	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

“HR Policies” shall mean HR policies, as from time to time in effect.

“HR Administrative Services Arrangement” shall mean Schedule H to this
Agreement.

“HR Services” shall have the meaning specified in Schedule H to this Agreement.

“In-Country Network” shall mean the combination of Network Assets, Network
Staff and other Network Resources together with any other resources that SITA
SC (or the applicable SITA Group Company) operates as a network within a
Country under the applicable regulatory authority.

“In-Country Network Operations” or “ICNO” shall mean the operation of the
In-Country Network in a Country by SITA SC (or the applicable SITA Group
Company), including applicable support and administrative functions.

“In-Country Network Resources” shall mean those Network Resources, and Other
Network Resources that SITA SC (or the applicable SITA Group Company) holds in
a Country from time to time.

“Indemnitee” and “Indemnitor” shall have the meanings specified in Clause 20.3
of this Agreement.

“Instruction Letter” shall have the meaning specified in Clause 5.4(a) of this
Agreement.

“Intangible Network Resources” shall mean all relevant intangible network
resources used in the operation of the Network including (1) Intellectual
Property Rights; (2) business and technical documentation and records (whether
or not confidential and in whatever form held); (3) capitalised development;
and (4) applicable numbering schemes (including number for dial-up services and
network identifications) but specifically excluding the Class A Address Block.

“IT” shall have the meaning specified in Clause 7.1(a) of this Agreement.

“IT Joint Task Force” and “IT JTF” shall mean the joint task force appointed to
supervise the IT Transition in accordance with Clause 7.2(a) of this Agreement.

“IT Services” means the Equant IT Services and SITA IT Services collectively.

“IT Services Description” shall mean Schedule E to this Agreement.

“IT Transition” shall mean the process to achieve the goals and objectives in
Clause 7.1 of this Agreement.

“IT Transition Period” shall mean the period beginning on the Effective Date
and ending on the date that is twenty-one (21) months following the Effective
Date.

“IT Transition Plan” shall have the meaning specified in Clause 7.2(a) of this
Agreement.

“IT Transition Project” shall have the meaning specified in Schedule E.

“IT Transition Restructuring Costs’ shall have the meaning specified in phrase
(ii) of the definition of “Restructuring Costs.”

“Joint Task Force” or “JTF” shall have the meaning specified in Clause 4.2 of
this Agreement.

“Joint Venture” or “JV” shall mean the joint venture between the Parties under
the JV Agreement.

	 	 	 
	

	Transition and Management Agreement	A-1-2	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

“JV Agreement” means the Joint Venture Agreement by and among SITA SC, SITA
Global Telecommunications Services Limited, Equant (formerly SITA
Telecommunications Holdings N.V.) and SITA GlobeTel Company, dated 2 October
1995, as amended.

“Lack of Readiness” shall have the meaning specified in Clause 4.6(b)(ii)(A) of
this Agreement.

“Leased Space” shall have the meaning specified in Clause 13.1(d) of this
Agreement.

“Legally Permissible” shall mean, with respect to any particular Country, that
(1) no legal or regulatory requirement or obligation on the part of SITA SC (or
the applicable SITA Group Company) or the in-Country Network Operations exists
with regard to the operation of the Network in that Country that would prevent
the relevant Network Resources in that Country from being transferred to
Equant; and (2) no legal or regulatory requirement or obligation in that
Country exists that would prevent Equant or an Affiliate of Equant from
operating the Network in that Country after the date of Transfer on a basis
under which Network Services can continue to be provided by SITA SC or the
applicable SITA Group Company to the Air Transport Community with no noticeable
(i) increase in costs or (ii) deterioration of Network Services service levels.

“Master Premises Plan” means a plan prepared by the Parties to formalise the
usage of Network Space by Network Staff in accordance with the principles set
forth in Clause 13.

“Material Financial Detriment” shall mean the sum of all Material Financial
Detriment Costs for a Transfer once it becomes subject to reimbursement
pursuant to Clause 16.3 of this Agreement.

“Material Financial Detriment Costs” shall mean, in respect of each Transfer,
the Losses incurred by SITA SC (and/or the applicable SITA Group Company) (i)
to the extent due to the Transfer, and (ii) in respect of time periods from the
date of such Transfer and up to the fifth anniversary thereof. Material
Financial Detriment Costs do not include any Restructuring Costs.

“Network Access Agreement” or “NAA” shall mean the agreement in Schedule G to
this Agreement.

“Network Access Equipment” shall mean customer premises equipment and similar
end-user specific equipment, and that is provided by SITA and Equant to their
customers to enable end-users to access the Network.

“Network Assets” shall mean all relevant tangible assets owned by the SITA
Group Companies and used in the operation, administration and management of the
Network, including (i) communication concentrators, switching equipment,
routers, servers, hubs, access devices, data communications equipment, and
related equipment, (ii) all associated cabling, (iii) tangible movable property
required to maintain and operate the Network’s domestic and international
leased circuits or purchased telecommunications capacity, and {and}(iv)
purchased telecommunications capacity, but shall exclude any Network Access
Equipment for SITA Customers (except as otherwise agreed by the Parties) and
all real property and buildings and improvements thereon.

“Network Operations” shall mean In-Country Network Operations.

“Network Resources” shall mean Network Assets together with Network Staff.

“Network Space” means Exclusive Space together with the portion of any Shared
Space that is used in general for or by Network Operations, as of the Effective
Date and from time to time thereafter.

“Network Staff” shall mean (i) all employees of SITA SC who are dedicated full
time to the operation, administration or management of the Network (unless
otherwise mutually agreed), (ii) such employees whose functions or activities
partly relate to the Network as identified and agreed by the

	 	 	 
	

	Transition and Management Agreement	A-1-3	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

Parties on a case-by-case basis in accordance with this Agreement, and (iii)
all transferred workshop employees, but shall exclude SITA retained workshop
employees.

“Network Transfer” shall mean, in a Country, the transfer or assignment, as
applicable, of all or substantially all of the Network Resources the Intangible
Network Resources, and the Other Network Resources from SITA to Equant pursuant
to Clause 4 of this Agreement, as evidenced by the Parties’ execution of a
network transfer form and following which Equant assumes full operational
control of the Network in the Country.

“Network Transfer Effective Date” shall mean the date specified as such in the
executed Network Transfer Form.

“Original Due Date” shall have the meaning specified in Clause 5.4(b)
of this Agreement.

“Other Network Resources” shall mean all relevant supply contracts entered into
by SITA SC for the operation, administration and management of the In-Country
Network, including all third party service agreements, Circuit Contracts,
equipment leases, and contracts for the support of Network Operations.

“Other Restructuring Costs” shall mean costs and expenses incurred by SITA SC
(or the applicable SITA Group Company) to the extent they (a) arise in
connection with an actual or prospective Transfer, it being agreed that no cost
or expense arising more than two (2) years after the Transfer (or such other
time as mutually agreed by the Parties) will be treated as being made in
connection with such Transfer, (b) are not recurrent costs or expenses of
ongoing operations, (c) are not costs or expenses that SITA SC (or the
applicable SITA Group Company) would have incurred in the absence of actual or
prospective Transfers, and (d) are not costs or expenses in respect of events
prior to the Effective Date.

“Partial Transfer” shall mean the transfer or assignment as applicable of some
but not all Network Resources and Other Network Resources in a Country, without
Equant taking full Network operational control of the applicable ICNO.

“Parties” and a “Party” shall mean Equant or SITA SC (and/or the applicable
SITA Group Companies), as applicable.

“P&I” shall mean policies, procedures and instructions issued by Equant from
time to time relating to (a) SITA SC’s and the applicable SITA Group Companies’
access to the Global Network, and (b) the operational standards (including any
corporate policies and procedures issued by Equant) to be followed by SITA SC
and the applicable SITA Group Companies as a condition to this access.

“Preceding Month-End Exchange Rate” shall have the meaning set forth in
Schedule F.

“Prioritised Timetable” shall mean the timetable for the Transfer of in-Country
Network Resources and the assignment of in-Country Other Network Resources from
SITA SC or the applicable SITA Group Company to Equant, as established and
updated from time to time by the Joint Task Force pursuant to the terms of
Clause 4 of this Agreement.

“Prioritised Timetable Transfer Process” means the process to be followed in
respect of each Network Transfer as set out in Clause 4.6 of this Agreement.

“Real Property Leases” shall mean all leases entered into by SITA SC or a SITA
Group Company in respect of facilities or premises that comprise, in whole or
in part, Network Space.

“Recipient” shall have the meaning specified in Clause 17.3 of this Agreement.

	 	 	 
	

	Transition and Management Agreement	A-1-4	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

“Related Agreements” shall have the meaning specified in Recital B of this
Agreement.

“Restructuring Costs” shall mean:

	 	 	 
	(i)	 	Other Restructuring Costs;
 
	(ii)	 	Costs and expenses of planning and implementing the IT
Transition, including Restructuring Costs under Clause 7.11 of this
Agreement (the “IT Transition Restructuring Costs”);
 
	(iii)	 	Transactional Restructuring Costs; and
 
	(iv)	 	Such other costs as mutually agreed by the Parties;
 
	but shall exclude any Material Financial Detriment Costs

“Revised Due Date” shall have the meaning specified in Clause 5.4(e) of this
Agreement.

“Revised Target Date” shall have the meaning specified in Clause 4.6(b)(iii)(C)
of this Agreement.

“Senior Member” shall mean the most senior member of the Network Staff in a
Country or a region reporting to a member of SITA Specific Staff.

“Separate Facility” means space within a Shared Space that is (or, as the
context requires, is reasonably capable of) being managed as a single
operational unit.

“Set Amount” shall have the meaning specified in Clause 15.1(e)(xiv) of this
Agreement.

“Shared Space” means facilities or premises leased or owned by a Party which
are partly used by Network Staff and/or Equant staff, on the one hand, and SITA
Specific Staff, on the other hand.

“Significant Costs” shall have the meaning specified in Clause 16.4(a) of this Agreement.

“SITA Corporate Sites” shall have the meaning in 13.3(a)(ii).

“SITA ICNO Costs” shall have the meaning specified in Clause 15.1(a) of this
Agreement.

“SITA IT Services” shall have the meaning specified in Clause 7.3(b) of this
Agreement.

“SITA-Owned Space” shall have the meaning specified in Clause 13.1(d) of this
Agreement.

“SITA Specific Activities” shall mean all activities of SITA SC or the
applicable SITA Group Company with the exception of ICNO activities.

“SITA Specific Staff” shall mean all employees of SITA SC other than Network
Staff, except as otherwise agreed by the Parties.

“Space” means Exclusive Space and Shared Space together.

“Statement of Costs” shall have the meaning specified in Clause 15.1(b)(i)(A)
of this Agreement.

“Supply Contracts” shall mean supply contracts in respect of Other Network
Resources.

“Target Date” shall have the meaning specified in Clause 4.6(b)(iii)(A) of this
Agreement.

	 	 	 
	

	Transition and Management Agreement	A-1-5	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

“Tax” or “Taxes” shall mean any and all taxes, fees, levies, duties, tariffs,
imposts, assessments and other charges of any kind (together with any and all
interest, penalties, additions to tax and additional tax amounts imposed with
respect thereto) imposed by any tax or equivalent governmental authority on
SITA SC (or the applicable SITA Group Company) under this Agreement, including
taxes or other charges on or with respect to income (net or gross), franchises,
windfall or other profits, gross receipts, capital, property, sales, use,
capital stock, payroll, employment, social security, pension insurance,
unemployment compensation, severance, occupation, premium or net worth taxes or
other charges in the nature of excise, withholding, ad volorem, value added,
stamp duties, tariffs and similar charges. Professional fees associated with
paying or contesting such Tax shall not be included as Tax, but may be claimed
in the same way as the associated Tax.

“Term” shall have the meaning specified in Clause 2 of this
Agreement.

“Third Party IT Agreements” shall have the meaning specified in Clause 7.12 of
this Agreement.

“Transfer” means either a Partial Transfer or a Network Transfer as applicable.

“Transactional Restructuring Costs” shall have the meaning set out in Clause
16.2(a)(i).

“Transfer Threshold” shall have the meaning specified in Clause 4.3(d)(i) of
this Agreement.

“Weighted Aggregate RC/MFD Liabilities” shall have the meaning specified in
Clause 4.3(d)(ii) of this Agreement.

	 	 	 
	

	Transition and Management Agreement	A-1-6	Dated: 30 November
2001
	Schedule A (Glossary)
	Restated Version with
Amendment 1 (Errata)

 

Attachment A-2

Generic Glossary

 

Note: All references to clauses of “this Agreement” in the Generic Glossary are to
clauses of the Services Agreement.

 

[*]

‘Account Management Agreement’ means the Account Management Agreement executed by SITA SC, SITA INC and
France Telecom on 29 June 2001.

‘Achieved Activity’ has the meaning set forth in clause 16.1(a) of this Agreement.

‘Active Sales’ means active marketing approaches to end customers, including without
limitation direct mail, advertisements in the media directly targeted at the customer group in
question, marketing visits which have not been specifically requested by such customers and
the submission of unsolicited bids.

‘Adjustments to the Year 2000 Cost Share’ has the meaning set forth in clause 10.2 of this
Agreement.

‘Affected Party’ means a Party that has delivered notice of an actual or proposed Change of
Control of such Party.

‘Affiliate’ means in respect of any legal entity, any other legal entity that Controls, is
Controlled by or is under common Control with such legal entity.

‘Agreement’ means this Services Agreement including all of the Schedules, all attachments to
such Schedules, and all of the appendices to such Schedules, all as amended from time to time.

‘Air Transport Community’ has the meaning set forth in Schedule B (‘Definition of Air
Transport Community’) to the Strategic Relationship Umbrella Agreement.

‘Allowable Differential’ has the meaning set forth in clause 12.6(a) of this Agreement.

‘Allowable Differential Curves’ has the meaning set forth in clause 12.6(b) of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management
Agreement
Schedule A (Glossary)
Restated Version with Amendment No. 1	A-2-1	Dated:  30 November 2001

 

 

‘Annual Forecast Date’ has the meaning set forth in clause 15.1(b) of this Agreement.

‘Annual Network Activity Forecast’ means a forecast of connections, traffic and other Network
activity for the period of thirty-six (36) calendar months commencing from the first day of
the calendar month immediately following the Annual Forecast Date.

[*]

‘Audit Representatives’ means an independent third-party accounting firm appointed by a Party
to audit another Party’s records or to inspect a Party’s owned or leased equipment that is
managed by another Party.

[*]

‘Benchmarking Agreement’ has the meaning set forth in clause 11.3(a) of this Agreement.

‘Benchmarking Certification Report’ has the meaning set forth in clause 11.5(a) of this Agreement.

[*]

‘Benchmarking Region’ has the meaning set forth in Schedule O (‘Benchmarking Regions’) to this
Agreement.

‘Benchmarking Report’ has the meaning set forth in clause 11.5(a) of this Agreement.

‘Benchmarking Survey’ has the meaning set forth in clause 11.1 of this Agreement.

‘Billing Entities’ and ‘Billed Entities’ has the meaning set forth in Schedule H (‘Billing
Entities, Billed Entities and Remitting Entities’) to this Agreement.

‘Billing Information’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Billing Period’ means the calendar month period in respect of which the Billing Entities are to deliver an invoice for
the Services rendered to SITA SC, SITA INC and the SITA Group Companies as applicable during
that calendar month.

‘Break Points’ has the meaning set forth in clause 12.6(b) of this Agreement.

‘Bundled Tail Circuits’ means Tail Circuits, Tie Lines or local access provided by Equant to
SITA SC, SITA INC and the SITA Group Companies on a bundled basis.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-2	Dated:  30 November 2001

 

 

‘Business Days’ means Monday to Friday, excluding any public holidays, when banks are open for
business in New York, London, Amsterdam, Paris and Geneva.

[*]

‘Change of Control’ shall with respect to a legal entity mean:

	 	 	 
	(a)	 	
the sale of other disposition by such legal entity of all, or substantially all, of the
assets of such legal entity; or
 
	(b)	 	
the sale or other disposition of more than 50% of the capital stock of such legal entity
(other than to an Affiliate, or a bona fide pledge in connection with a financing); or
 
	(c)	 	
a merger, consolidation or other business combination involving such legal entity, which
results in the stockholders, or certificate holders, as applicable, of such legal entity
and/or its Affiliates immediately prior to such event owning less than 50% of the capital
stock of the surviving entity.
 

‘Claim’ means any claim, demand, proceeding or other action.

‘Commitment Date’ has the meaning set forth in clause 16.1(c) of this Agreement.

‘Comparable Provider(s)’ has the meaning set forth in clause 2.4(a) of Schedule M (‘Instructions to the Independent Expert’);

‘Comparable Service(s)’ has the meaning set forth in clause 2.3(b) of Schedule M (‘Instructions to the Independent Expert’);

[*]

[*]

‘Confidential Information’ means in relation to SITA SC, SITA INC, and Equant, and each of their respective Affiliates:

	 	 	 
	(a)	 	
information that relates to the financial position, business, budget, financial and
product or marketing strategies, forecasts or projections of such entity, customer information
and lists, pricing information, costs data, estimates, market surveys, source codes, the
internal management or structure of such entity, technology plans, technical studies or
designs, trade secrets and other trade information, database models or personnel;
 
	(b)	 	
information that is marked by such entity as confidential or if disclosed orally is
identified as confidential;

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-3	Dated:  30 November 2001

 

 

	 	 	 
	(c)	 	
the Strategic Relationship Umbrella Agreement, this Agreement, the Transition and
Management Agreement and the Account Management Agreement, and the terms and conditions or other
provisions contained in each them (including any schedule or other attachments thereto);
 
	(d)	 	
in the case of Equant, the Equant IPR; and
 
	(e)	 	
in the case of SITA SC and SITA INC, the SITA IPR.

‘Consent’ means any approval, acceptance or consent by a Party that is required under this
Agreement. Pursuant to relevant clauses in this Agreement, except where expressly provided as
being in the sole and absolute discretion of a Party, Consent will not be unreasonably
withheld, conditioned or delayed.

‘Contract Year’ means 1 July to 30 June each year of the Term.

‘Contract Year One Cost Base’ has the meaning set forth in clause 10.3 of this Agreement.

‘Contract Year One Cost Base Transfers’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year One End Year True Up Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year One Quarterly MRC Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two Cost Base’ has the meaning set forth in clause 10.3 of this Agreement.

‘Contract Year Two Cost Base Transfers’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two End Year True Up Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Two Quarterly MRC Payment’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Contract Year Zero Volume’ has the meaning set forth in clause 10.3 of this Agreement.

‘Control’ and derivative terms (such as Controlling or Controlled) means, with respect to any
legal entity, the possession, directly or indirectly, of the power to direct or cause the
direction of the management policies of such legal entity, whether through the ownership of
voting securities or by contract or otherwise.

‘Cost Base Services’ means the Services designated as such under Schedule I (‘Schedule of
Services’) and as described in clause 10.1(a).

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-4	Dated:  30 November 2001

 

 

‘Cost Base Service Charges’ means the amounts payable by SITA SC and SITA INC to Equant with
respect to the Cost Base Services.

‘Cost Base Transfers’ means the cost of activities removed from the Cost Base after the
Effective Date as reasonably agreed by the Parties.

‘Cost Efficient’ means cost efficient from a tax and legal perspective.

‘Cost Share’ has the meaning set forth in clause 10.2 of this Agreement.

‘Country’ means any national or federal jurisdiction or territory.

‘Cumulative Contract Year One Interim MRC’ has the meaning set forth in clause 10.3 of this
Agreement.

‘Cumulative Contract Year Two Interim MRC’ has the meaning set forth in clause 10.3 of this Agreement.

‘Defaulting SITA Party’ has the meaning as set forth in clause 27.2 of this Agreement.

‘Detailed Billing Information’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Disclosing Party’ has the meaning set forth in clause 22.3 of this Agreement.

‘Dispute Resolution Procedures’, ‘Dispute Resolution Proceeding’ and ‘Dispute Resolution Process’ each means the procedures set forth in clause 8 of the Strategic
Relationship Umbrella Agreement.

‘Disputed Amounts’ has the meaning set forth in clause 18 of this Agreement.

‘Disputed Information’ has the meaning set forth in clause 18 of this Agreement.

‘Distributor’ means a customer of Equant that resells Network Services purchased from Equant
to one or more third parties.

[*]

‘Draft Price Book’ has the meaning set forth in Schedule J (‘Price Book Update Timescale’).

‘Duration’ has the meaning set forth in clause 16.3(a) of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-5	Dated:  30 November 2001

 

 

‘Effective Date’ means 1 July 2001.

‘Effective Period’ has the meaning set forth in clause 7.1(a) of this Agreement.

‘Equant Group Companies’ means, at any time during the Term, Equant N.V. and its Affiliates.

‘Equant IPR’ means the IPR owned by the Equant Group Companies.

‘Equant IT Services’ has the meaning set forth in clause 7 of the Transition and Management
Agreement.

‘Equant Non-Solicitation Obligation’ means the obligation of Equant not to make Active Sales to customers
within the Air Transport Community, as set forth in clause 7.4 of this Agreement.

‘Equant Project Executive’ has the meaning set forth in clause 20.2 of this Agreement.

‘Equivalent Connections’ shall have the meaning set out in the JV Agreement.

‘Exception Priced Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

‘Exception Priced Services’ means the Services which are classified as “Exception Priced
Services” under Schedule I (‘Schedule of Services’) and as described in clause 10.1(b)(ii).

‘Exclusivity Obligation’ means the obligation of the SITA Group Companies to purchase Network
Services exclusively from Equant, as set forth in clause 7.3 of this Agreement.

‘Executive Committee’ has the meaning set forth in clause 6.1 of the Strategic Relationship
Umbrella Agreement.

‘Force Majeure Event’ means any:

(f)       fire, flood, earthquake, elements of nature or acts of God;

(g)       riot, civil disorder, rebellion, revolution, acts of war, or acts of terrorism;

(h)       third party strikes or lockouts affecting the non-performing Party’s ability to fulfill
its obligations; or

(i)       other causes beyond the reasonable control of the non-performing Party.

‘Forecast Dates’ means the Quarterly Forecast Dates and the Annual Forecast Date and in the
event that a Forecast Date does not fall on a Business Day, a reference to a Forecast Date
shall mean the Business Day immediately preceding the relevant Forecast Date.

‘France Telecom’ means France Telecom S.A., a société anonyme having its registered office at
6,

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-6	Dated:  30 November 2001

 

 

place d’Alleray Cedex 5, 75015 Paris, France.

[*]

‘Generic Network Assets’ has the meaning set forth in clause 5.3(a) of this Agreement.

‘Generic Price Book’ means the Price Book that provides gross generic distributor prices with
respect to Generic Products/Services.

‘Generic Product/Service’ means a product or service that Equant offers generally to all of
its distributors and that is designated as such in the Price Books.

[*]

‘Global One’ means Global One Communications Holding B.V. and Global One Communications World
Holding B.V of Klaprozenweg 75, 1033 NN Amsterdam, The Netherlands.

‘Global One ATC Contract’ has the meaning set forth in clause 6.4 of this Agreement.

[*]

[*]

‘Glossary’ means this Schedule A (Glossary) to this Agreement.

‘Heads of Agreement’ or ‘HOA’ means the Heads of Agreement executed by SITA SC, SITA INC,
France Telecom, and Equant on 19 November 2000.

‘Historical Activity Data’ has the meaning set forth in clause 10.5 of this Agreement.

‘Historical Data’ has the meaning set forth in clause 17(a) of this Agreement.

‘ICNO’ has the meaning set forth in the Transition and Management Agreement.

‘Independent Expert’ has the meaning set forth in clause 11.2 of this Agreement and shall
include any Replacement Independent Expert.

[*]

‘Insolvency Event’ has the meaning as set forth in clause 28.3 of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-7	Dated:  30 November 2001

 

 

‘Intellectual Property Rights’ or ‘IPR’ means any letters patent, patented articles, patent
applications, designs, copyrights, database rights, moral rights, inventions whether or not
capable of protection by patent or registration, techniques, technical data and know-how,
whether registered or unregistered and including applications, registrations and renewals in
connection thereunder for the grant of any such assets or rights of the foregoing descriptions
and all rights or forms of protection having equivalent or similar effect anywhere in the
world.

‘Interim Benchmarking Report’ has the meaning set forth in clause 11.6 of this Agreement.

‘Invoiced Party’ has the meaning as set forth in clause 18.8(c) of this Agreement.

‘Invoicing Party’ has the meaning set forth in clause 18.8(c) of this Agreement.

‘IT Transition Period’ means the twenty-one (21) month period commencing on the Effective Date
and ending on the day before the twenty-first month anniversary of the Effective Date.

‘JV Agreement’ or ‘JV’ means the Joint Venture Agreement executed by SITA SC, SITA Global
Telecommunication Services Limited, SITA Equant (formerly SITA Globetel Company) and Equant (formerly SITA
Telecommunications Holdings N.V.) on 2 October 1995, as amended.

‘Key Measurements’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to this
Agreement.

‘Laws’ means:

	 	 	 
	(j)	 	
any applicable law, statute, regulation, ordinance or subordinate legislation in force
from time to time to which a Party is subject; and
 
	(k)	 	
any applicable directive, policy, rule, judgement, injunction, decree or order that is
binding on a Party and that is made or given by any government, agency thereof, or any
regulatory body;

of any Country, the European Union, or other national, federal, commonwealth, state,
provincial or local jurisdiction.

[*]

‘Losses’ means all losses, liabilities, damages, costs and expenses (including reasonable
legal fees, and disbursements including external costs of investigation, litigation,
settlement, judgement, interest and penalties).

‘MFN Agreement’ has the meaning set forth in clause 13.3(a) of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-8	Dated:  30 November 2001

 

 

‘MFN Certification Report’ has the meaning set forth in clause 13.4(a) of this Agreement.

‘MFN Evaluation’ (with MFN standing for ‘most favored nation’) means the procedure
described in Schedule N (‘Instructions to the MFN Evaluator’) of this Agreement.

‘MFN Evaluation Report’ has the meaning set forth in clause 13.4(a) of this Agreement.

‘MFN Evaluator’ has the meaning set forth in clause 13.2 of this Agreement.

‘MFN Refund’ has the meaning set forth in clause 13.1(b) of this Agreement.

‘MFN Revised Net Price Book Prices’ has the meaning set forth in clause 13.1(b) of this
Agreement.

‘MFN Test(s)’ means the most favoured nation tests set forth in Schedule N (‘Instructions to
MFN Evaluator’).

‘Minimum Revenue Commitment’ or ‘MRC’ has the meaning set forth in clause 14 of this Agreement.

‘Minimum Unit Cost Reductions’ has the meaning set forth in clause 10.3 of this Agreement.

‘Modify’ and ‘Modification’ means to add to, expand, enhance, reduce, change, replace, vary,
derive or improve.

‘Net Price Book Prices’ means the prices derived by applying any applicable discounts to the
Price Books.

‘Net Price Book Activity’ means the billable activity applicable to the Net Price Book Prices.

‘Network’ means the network that is jointly managed by SITA SC and by Equant as at the
Effective Date pursuant to the JV Agreement, as such Network is modified throughout the Term.

‘Network Activity Forecasts’ means the Quarterly Network Activity Forecast and the Annual
Network Activity Forecast.

‘Network Implementation Action’ means a fully-developed business plan for a specific expansion
or modification of the Network.

‘Network Planning Committee’ means the committee established pursuant to clause 5.2 of this
Agreement.

‘Network Operational Performance Committee’ or ‘NOPC’ means the committee that is established
pursuant to clause 5.5 of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-9	Dated:  30 November 2001

 

 

‘Network Resources” has the meaning set forth in the Transition and Management Agreement.

‘Network Services’ mean any product or service which is itself telecommunications carriage or
which includes telecommunications carriage as a component of such product or service.

‘Network Services Revenue’ means, in respect of a legal entity, the aggregate of all revenues
received from customers (other than from an Affiliate of such entity) from the sale of Network
Services, including all revenues received in respect of products that include Network Services
bundled with services other than Network Services.

‘Network Short Term Development Plan’ means a business plan for the development of the Network
that sits with Equant’s specific plans for the six (6) month period commencing from the date
of the Network Short Term Development Plan.

‘Network Strategic Plan’ means a long term strategic plan outlining Equant’s plans for the
Network.

[*]

‘Nomination Criteria’ has the meaning set forth in clause 1 of Schedule K (‘Nomination and Selection of
Independent Expert’).

‘Nominee’ has the meaning set forth in Schedule K (‘Nomination and Selection of Independent
Expert’).

‘Non-Cost Base Services’ means the Services designated as such under Schedule I (‘Schedule of
Services’).

[*]

‘Non-Renewed Revenue’ has the meaning set forth in clause 14(b) of this Agreement.

‘Operations and Procedures Manual’ means the manual to be developed by the Parties as described.

‘Overall Revenue’ means, in respect of a legal entity, the aggregate of all revenues received
from customers (other than an Affiliate of such legal entity) from the sale of any product or
service.

[*]

‘Pass Through Expenses’ means actual costs for Pass Through Services that are charged by Equant to

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-10	Dated:  30 November 2001

 

 

SITA SC or SITA INC net of any related management fees as may be agreed by the Parties (ie., without margin, markup or fee).

‘Pass Through Services’ means the Services which are classified as “Pass Through Services”
under Schedule I (‘Schedule of Services’).

‘Performance Targets’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to
this Agreement.

‘Pre-Contractual Statements’ has the meaning as set forth in clause 30.6(a) of this Agreement.

‘Preliminary Price Book’ has the meaning set forth in Schedule J (‘Price Book Update
Timescale’).

‘Price Books’ means the Generic Price Book and the SITA Specific Price Book for the respective
Contract Year.

‘Price to Volume Assessment’ has the meaning set forth in clause 12.1 to this Agreement.

‘Price to Volume Assessment Report’ has the meaning set forth in clause 12.2 to this Agreement.

‘Priced Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

‘Priced Services’ means the Services which are classified as “Priced Services” under Schedule
I (‘Schedule of Services’) and shall include any Bundled Tail Circuits.

‘Pricing Structure’ has the meaning set forth in clause 10.2 of this Agreement.

‘Product Council’ means the committee that is established pursuant to clause 4.2 of this
Agreement.

‘Proposed Action’ has the meaning set forth in clause 5.1 of this Agreement.

‘Quarterly Forecast Dates’ has the meaning set forth in clause 15.1(a) of this Agreement.

‘Quarterly Network Activity Forecast’ means a forecast of connections, traffic and other
Network activity for the period of twelve (12) calendar months commencing from the first day
of the calendar month immediately following the Quarterly Forecast Date.

‘Quarterly Network Activity Forecast Value’ has the meaning set forth in clause 16.1(a) of
this Agreement.

[*]

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-11	Dated:  30 November 2001

 

 

‘Recognisable Costs’ has the meaning set forth in clause 16.1(b) of this Agreement.

‘Reconciliation Report’ has the meaning set forth in clause 18.4(a) of this Agreement.

‘Reduction Amount’ has the meaning set forth in clause 14(b) of this Agreement.

‘Related Provisions’ means the Exclusivity Obligation, the Equant Non-Solicitation Obligation
and the SITA Group Companies Non-Solicitation Obligation.

‘Remedy Period’ has the meaning set forth in clause 7.3 of this Agreement.

‘Replacement Independent Expert’ has the meaning set forth in clause 11.6 of this Agreement.

‘Replacement MFN Evaluator’ has the meaning set forth in clause 13.7(b) of this Agreement.

‘Replacement Supplier’ means a third-party provider selected by SITA SC and/or SITA INC to
supply services to replace all or part of the Services (a) after the expiry or termination of
this Agreement; (b) following a partial removal of part of the Services from the scope of this
Agreement; or (c) following exercise by SITA SC of the Step-In Rights.

‘Reports’ means those reports specified in Schedule G (Reports) to this Agreement.

‘Service Charges’ has the meaning set forth in clause 10.3 of this Agreement.

‘Service Credits’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to this
Agreement.

‘Service Level’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Schedule’) to this
Agreement.

‘Service Level Default’ has the meaning set forth in clause 1 of Schedule F (‘Service Levels Agreement’)
to this Agreement.

‘Service Levels Schedule’ means Schedule F (‘Service Levels Schedule’) to this Agreement.

‘Services’ means the Network Services and the Support Services and ad hoc services.

‘Significant Forecast Deviation’ has the meaning set forth in clause 16.1(a) of this Agreement.

[*]

‘SITA Group Companies’ means, at any time during the Term, SITA SC, its Affiliates, including
SITA INC (so long as SITA INC is Controlled by the SITA INC Foundation).

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-12	Dated:  30 November 2001

 

 

‘SITA Group Companies Non-Solicitation Obligation’ means the obligation of the SITA Group
Companies not to make Active Sales to customers outside of the Air Transport Community, as set forth in
clause 5 of this Agreement.

‘SITA INC Non-Equant Network Services Revenue’ has the meaning set forth in clause 7.3 of this
Agreement

‘SITA IPR’ means the IPR owned by the SITA Group Companies.

‘SITA Relationship Team’ or ‘SRT’ has the meaning set forth in clause 6.2 of the Strategic
Relationship Umbrella Agreement.

‘SITA Marks’ mean the trade marks, service marks, brand names, trade names, business names and
logos of the SITA Group Companies that were used by Equant, or are embedded in the software,
systems, works of authorship and similar materials in Equant’s possession, as of the Effective
Date.

‘SITA Specific Discount’ means all discounts applied to gross prices set forth in the Price
Books by Equant on behalf of SITA SC, SITA INC and the SITA Group Companies and includes the
Volume Discount.

‘SITA Specific Price Book’ means the Price Book that provides prices applicable to SITA
Specific Products/Services.

‘SITA Specific Product/Service’ means a product and/or service (other than a Generic
Product/Service) developed or to be developed for the specific use of the SITA Group Companies
and their customers.

[*]

‘Standard Cost Services’ means the Services which are classified as “Standard Cost Services
under Schedule I (‘Schedule of Services’).

‘Standard Cost Service Charges’ has the meaning set forth in clause 10.1 of this Agreement.

‘Step-In Rights’ has the meaning set forth in clause 5.4 of this Agreement.

‘Strategic Relationship Benefits’ has the meaning set forth in clause 7.8(b) of this Agreement.

‘Strategic Relationship Umbrella Agreement’ means the Strategic Relationship Umbrella
Agreement executed by France Telecom, SITA SC, SITA INC and Equant on 29 June 2001.

‘Support Services’ means all products and services listed in the Price Books that are not
Network Services.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-13	Dated:  30 November 2001

 

 

‘Tail Circuits”, ‘Tie Lines’ or ‘Local Access’ means tail circuits, tie lines and local access.

[*]

‘Term’ has the meaning set forth in clause 2 of this Agreement.

‘Terminated Benchmark Period’ has the meaning set forth in clause 11.6 of this Agreement.

‘Terminated MFN Period’ has the meaning set forth in clause 13.7(c) of this Agreement.

‘Terminated Revenue’ has the meaning set forth in clause 14(b) of this Agreement.

‘Termination Period’ has the meaning as set forth in clause 27.9(a) of this Agreement.

‘Transaction’ means the transaction contemplated by the Contribution Agreement relating to
Global One and the Share Purchase Agreement.

‘Transfer’ has the meaning set out in the Transition and Management Agreement.

‘Transferred Company’ has the meaning set forth in clause 7.3(g) of this Agreement.

‘Transition and Management Agreement’ means the Transition and Management Agreement executed
by Equant and SITA SC on the 29 June 2001.

[*]

‘Volume’ has the meaning set forth in Schedule P (‘Unit Cost, Cost Base and Volume
Considerations’) to this Agreement.

‘Volume Discount’ has the meaning set forth in clause 10.2 of this Agreement.

[*]

‘Year 2000 Cost Base’ has the meaning set forth in clause 10.2 of this Agreement.

‘Year 2000 Cost Share’ has the meaning set forth at clause 10.2 of this Agreement.

‘Year 2000 Price Book’ has the meaning set forth at clause 10.2(d) of this Agreement.

Note: All references to clauses of “this Agreement” in the Generic Glossary are to clauses of the Services Agreement.

	 	 	 
	

	Transition and Management Agreement
Restated Version with Amendment No. 1	A-2-14	Dated:  30 November 2001

 

 

Schedule B

IT JTF GUIDELINES

Context

	1.	 	The Parties will work together through the IT Joint Task Force (the “IT
JTF”) to manage the IT Transition.
	 
	2.	 	The IT JTF will include a program manager from each Party who shall be
the SPOC for each Party with regard to the IT Transition.
	 
	3.	 	Each SPOC will be authorised to jointly agree measures and actions that
fall within the scope of the IT Transition, subject to the IT Transition
Guidelines (set forth below) and within specific budget approvals.
	 
	4.	 	If the SPOCs fail to agree on an issue, or an issue arises that either
SPOC reasonably believes is outside the bounds of his or her authority,
the issue will be referred to the IT Steering Committee for resolution.
	 
	5.	 	The IT Steering Committee will attempt to resolve the issue consistent
with the IT Transition Guidelines set forth below. If the Parties do not
agree in the IT Steering Committee, the dispute will be escalated for
resolution pursuant to the Transition and Management Agreement.

IT Transition Guidelines

Costs & Improvements in Functionality

	1.	 	Each solution provided as part of the IT Transition Plan must be the one
that provides at least an equivalent level of service (e.g., the same
software, hardware, performance, capacity, functionality, version, etc.,
as applicable, collectively the “Level of Service”) as was previously
provided for the lowest commercially reasonable implementation cost.
	 
	2.	 	If Guideline #1 is not dispositive in resolving the issue, the solution
that involves the optimal mix of the shortest completion time, least risk
of failure, least business disruption (for both Parties), and least impact
on the Party providing the IT Service being transitioned will be chosen.
	 
	3.	 	The Party for whom a solution is being implemented will bear the
incremental costs (including both the implementing Party’s value of time
and expenses as well as third party expenses, e.g., purchasing, licensing,
services), if any, of any solution to the extent the solution provides
such Party with a higher Level of Service than was previously provided.

Timing

	1.	 	The IT Transition shall be scheduled in accordance with Clauses 7.1 and
7.2(c) and 7.2(d).
	 
	2.	 	Subject to Clause 7.1, if conflicts in IT Transition scheduling
priorities arise, the IT JTF will use, as a criterion for prioritising
individual steps within the IT Transition, the willingness of the supplier
of the relevant IT Services to continue to provide such IT Services.
	 
	3.	 	If the IT JTF believes in good faith that there is more than one (1)
solution that can provide the same Level of Service, then Equant will
decide which solution to implement.

	 	 	 
	

	Transition and Management
Agreement
Schedule B (IT JTF Guidelines)
Restated Version with
Amendment 1 (Errata)	B-1	Dated:  30 November 2001

 

 

Schedule C

Central staff countries

 

The Central Staff Countries are:

Australia

Canada

France

Singapore

Switzerland

United Kingdom

United States of America

	 	 	 
	

	Transition and Management
Agreement

Schedule C (Central Staff Countries)
Restated Version with
Amendment 1 (Errata)	C-1	Dated:  30 November 2001

 

Schedule D

Set Amounts

 

The Set Amounts in Clause 15.1(e)(xiv) as of the Effective Date shall be:

	 	 	 	 	 
	Large Countries charge per month
Medium Countries charge per month

Small Countries charge per month

Very small Countries charge per month
	 	 	
[*]
[*]

[*]

[*]
	 

The above monthly charges are based on weighting factors of [*]
(respectively for large, medium, small and very small Countries), which
weighting factors will be used for any adjustments in accordance with Clause
15.1(e)(xiv) unless the Parties otherwise agree.

The criteria for assessment of very small, small, medium and large shall be
delineated as follows:

	 	 	 	 	 	 	 
	

	Size	 	Annual
Costs*	 	Total tie
lines
(number)	 	Number of
personnel
	

	Very Small
	 	[*]	 	 	 	 
	

	Small
	 	[*]	 	[*]	 	[*]
	

	Medium
	 	[*]	 	[*]	 	[*]
	

	Large
	 	[*]	 	[*]	 	[*]
	

If any ICNO (other than one categorised as Very Small) meets 2 or more of the
criteria, then it would be classified in that category.

	
*  In calculating annual costs, access circuit costs will be excluded. In
specific circumstances (e.g., costs for Network Resources that may not be transferred for other legal reasons), the Parties may agree that the ICNO falls into a different category according to the level of complexity of accounting
activities.

	 	 	 
	

	Transition and Management Agreement	D-1	Dated:  30 November 2001
	Schedule D (Set Networks)
Restated Version with Amendment No. 1
(Errata)	 	 

 

Schedule E

IT Services Description

 

 

 

                         [*]

	 	 	 
	Transition and Management
Agreement	 	Dated: 30
November 2001
	Schedule E ( IT Services
Description)	 	 
	Restated Version with
Amendment 1 (Errata)	 	

1

 

 

Schedule F

EQUANT ASSET FUNDING ARRANGEMENT

	 	 	 
	1.	 	
GENERAL

This Equant Asset Funding Arrangement (the “EAFA”) concerns arrangements under
which:

	 	 	 
	(a)	 	
Equant will refinance equipment purchased by SITA SC (or the applicable
SITA Group Company) under the Instrument Constituting Unsecured Loan Notes
dated 18 March, 1996 (the “Instrument”, and such equipment to be purchased
thereunder, the “Equipment”);
 
	(b)	 	
Equant will loan funds under the Note (as defined below) to be issued by
SITA SC (or the applicable SITA Group Company) to finance or refinance the
purchase of Funded Network Assets (as defined below) on or after the
Effective Date; and
 
	(c)	 	
Equant will make Advances (as defined below) to SITA SC (or the
applicable SITA Group Company) for the purpose of its working capital
requirements in connection with the purchase of Funded Network Assets (as
defined below).
 
	(d)	 	
It is understood and agreed that SITA SC (or the applicable SITA Group
Company) may meet its obligations hereunder by causing the relevant local
SITA Group Company to fulfill such obligations.
 
	2.	 	
DEFINITIONS

“Advance” means a short term advance made by Equant to SITA SC (or the
applicable SITA Group Company) in accordance with Article 7, or, as the context
requires, the principal amount of that Advance from time to time outstanding.

“Dollars” or “$” means the lawful currency of the United States of America.

“Finance Rate” means interest at the rate of one per cent (1%) above the U.S.
Dollar three (3) month London Interbank Offered Rate (LIBOR) appearing on the
Reuters Screen LIBOR 01 Page as of 11:00 a.m., London time, and which shall be
determined on the Effective Date and thereafter on the last day of each
calendar year.

“Funded Asset” means those assets, both tangible and intangible to be purchased
by SITA SC (or the applicable SITA Group Company) and funded by Equant.
“Funded Assets” means all such assets collectively.

“Instrument” shall have the meaning specified in paragraph 1(b) hereof.

“Local Currency” means, with respect to each Funded Asset, the local currency
in which the Funded Asset is accounted for from time to time.

“Monthly Schedule” means a schedule issued each month to the Note containing
the details of Network Assets purchased or to be purchased out of the proceeds
of the Note, as specified in paragraph 4(d) hereof.

“Note” means the unsecured loan note, substantially in the form of Exhibit A
hereto, issued by SITA SC (or the applicable SITA Group Company) to Equant, or
the principal amount outstanding at any time represented by the Note
outstanding, as the case requires.

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-1	Dated:  30 November 2001

 

“Payment Date” means, in respect of each month, the settlement date for that
month as set out in Clause 15.1(i)(ii).

“Preceding Month End Exchange Rate” means the last available foreign currency
exchange rate for the applicable local currency as published in the Financial
Times at the end of the month immediately preceding the month in which the SITA
ICNO Costs are incurred, or such other rate as mutually agreed by the Parties
from time to time.

“Principal Amount” means for the purposes of this EAFA and the Note, the costs
capitalised in relation to a Funded Asset.

“Unsecured Loan Note Assets” means those assets purchased under the Instrument,
and not as yet transferred to the ownership of Equant.

“Working Capital Adjustment Amount” means the principal amount of the Advance
made on the date of funding under the Note less the amount of the Advance
repaid on that date, which is acknowledged may be a positive or a negative
number.

	 	 	 
	3.	 	
STATUS OF NOTE
 
	(a)	 	
The Note represents a direct and unsecured obligation of SITA SC (or the
applicable SITA Group Company) for the due and punctual payment, in
accordance with the terms of this EAFA, by way of transfer of the related
Funded Assets or other payment of the Principal Amount in respect of the
Note and for performance of all the obligations of SITA SC (or the
applicable SITA Group Company) with respect to the Note.
 
	(b)	 	
The Note will be denominated in the Local Currencies according to the
locations of the Funded Assets and will rank (and SITA SC (or the
applicable SITA Group Company) shall procure that the Note continues to
rank) at least pari passu with all other unsecured indebtedness of SITA SC
(or the applicable SITA Group Company) except to the extent required by
law.
 
	(c)	 	
SITA SC (or the applicable SITA Group Company) shall comply with the
terms of the Note.

	 	 	 
	4.	 	
FUNDING OF NOTE
 
	(a)	 	
The Note shall be executed by SITA SC (or the applicable SITA Group
Company) substantially in the form set out in Exhibit A to this EAFA.
 
	(b)	 	
SITA SC (or the applicable SITA Group Company) may from time to time
request that Equant make funds available under the Note to enable SITA SC
(or the applicable SITA Group Company) to purchase, or refinance SITA SC’s
(or the applicable SITA Group Company’s) purchase of, Funded Assets.
 
	(c)	 	
If Equant agrees to make funds available under the Note following a
request pursuant to paragraph 4(b) above hereof (including agreement as to
the date of funding, the Local Currency of funding, the amount of the
funding and the related Funded Asset), then:

	 	 	 
	(i)	 	
SITA SC (or the applicable SITA Group Company) shall issue
the Monthly Schedule in accordance with paragraph 4(d) below and
deliver it to Equant; and

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-2	Dated:  30 November 2001

 

	 	 	 
	(ii)	 	
Equant shall pay to SITA SC (or the applicable SITA Group
Company) the Dollar equivalent of the amount to be funded under the
Monthly Schedule within five (5) calendar days following the date of
delivery of the Monthly Schedule. Such Dollar equivalent amount
shall be calculated using the Preceding Month End Exchange Rate.

	 	 	 
	(d)	 	
The Parties shall keep records to be updated each time a funding or
repayment of the Note is made by inserting or deleting the details of the
Funded Asset to be purchased, refinanced or repaid by such funding or
repayment of the Note (including a description of the Funded Asset, the
identity of the vendor of the Funded Asset, the purchase price or net book
value (as applicable, expressed in the Local Currency) of the Funded Asset
and where the Funded Asset is to be located).
 
	(e)	 	
SITA SC (or the applicable SITA Group Company) shall apply the proceeds
received upon each funding of the Note to the purchase of, or the
refinancing of the purchase of, the related Funded Asset, and shall, at
the request of Equant, provide evidence to Equant of the completion of the
purchase.
 
	(f)	 	
As of the Effective Date, SITA SC (or the applicable SITA Group Company)
shall refinance the assets funded under the Instrument notes at their
local currency net book values by a funding under the Note equal to such
local currency amounts due.
 
	5.	 	
INTEREST ON NOTE
 
	(a)	 	
The rate of interest payable on the Principal Amount of the Note is the
Finance Rate.
 
	(b)	 	
Interest on the Principal Amount of the Note shall accrue from day to day
and shall be payable in arrears on each Payment Date.
 
	6.	 	
REPAYMENT OF NOTE
 
	(a)	 	
Equant shall be entitled to require the repayment of the Note, in whole
or in part, on demand by the transfer by SITA SC (or the applicable SITA
Group Company) to Equant of any or all of the Funded Assets at the then
net book value as denominated in local currency of such Funded Asset or
Assets and, upon such transfer, the Principal Amount shall be deemed
repaid by an amount equal to such book value.
 
	(b)	 	
Upon the transfer by SITA SC (or the applicable SITA Group Company) to
Equant of a Funded Asset, legal title to such Funded Asset shall pass to
Equant. If the Funded Asset is an intangible asset, all rights, title and
interest in and to such intangible asset (including without limitation, as
applicable, copyrights, inventions (whether patentable or not), licences,
trade secrets and the like) shall pass to Equant at that time.
 
	(c)	 	
On each Payment Date, SITA SC (or the applicable SITA Group Company)
shall make a part repayment in Local Currency of the Principal Amount in
an amount equal to the Local Currency depreciation incurred by SITA SC (or
the applicable SITA Group Company) with respect to the Funded Assets
during the period between the last Payment Date and that Payment Date.

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-3	Dated:  30 November 2001

 

	 	 	 
	(d)	 	
A demand for partial repayment of the Note, under paragraph 6(a) above
shall only be made if:

	 	 	 
	(i)	 	
Equant in its demand for partial repayment identifies the
relevant Funded Asset(s) to be transferred; and
 
	(ii)	 	
the relevant Funded Asset(s) to be transferred is capable
of transfer separate from the other Funded Assets relating to the
Note.

	 	 	 
	(e)	 	
SITA SC (or the applicable SITA Group Company) shall take whatever action
Equant may reasonably require for perfecting title in, or in accordance
with paragraph 6(a) above facilitating the transfer of, a Funded Asset
including:

	 	 	 
	(i)	 	
the delivery of the Funded Asset;
 
	(ii)	 	
the method of importation of the Funded Asset;
 
	(iii)	 	
the execution of any transfer, conveyance or assignment of
the Funded Asset; and
 
	(iv)	 	
the giving of any notice, order, or direction and the
making of any required registration;

	 	 	 
	 	 	
provided that any costs incurred by SITA SC (or the applicable SITA
Group Company) in complying with this paragraph 6(e) shall be (as
applicable) a cost included in the Principal Amount; if the amount may
be capitalised under applicable GAAP, or otherwise as a SITA ICNO Cost
under Clause 15 of the Transition and Management Agreement.:
 
	(f)	 	
Prior to the transfer of any Funded Asset, Equant shall carry out all
actions required in order to account for the Funded Assets in its own
accounting records, immediately upon and following the date of transfer of
such Funded Asset.
 
	(g)	 	
If any Funded Asset has been destroyed or damaged or is no longer owned
by SITA SC (or the applicable SITA Group Company), or is incapable of
transfer, so that repayment in accordance with paragraph 6(a) above is not
possible, then SITA SC (or the applicable SITA Group Company) shall
instead either:

	 	 	 
	(i)	 	
provide to Equant equipment or other assets that Equant is
satisfied are equivalent to the Funded Asset so destroyed or
damaged or incapable of transfer; or
 
	(ii)	 	
upon Equant’s agreement, pay to Equant the Principal Amount
due under the Note in respect of such Funded Asset in the Local
Currency or Dollar equivalent (calculated using the Preceding Month
End Exchange Rate).

	 	 	 
	(h)	 	
In calculating the repayment of the Note in whole or in part, there shall
be taken into account any amount payable by SITA SC to Equant under
paragraph 6(c) above on the next Payment Date and accordingly:

	 	 	 
	(i)	 	
the Principal Amount treated as repaid by the transfer of
such Funded Asset for the purposes of paragraph 6(a) above shall be
adjusted accordingly;
 
	(ii)	 	
the Principal Amount payable under subparagraph 6(g)(ii)
above shall be adjusted accordingly;

	 	 	 
	 	 	
but no additional interest shall be payable as a consequence of this
paragraph 6(h).

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-4	Dated:  30 November 2001

 

	 	 	 
	7.	 	
ADVANCES
 
	(a)	 	
SITA SC (or the applicable SITA Group Company) may, at the same time it
requests that Equant make funds available under the Note in accordance
with paragraph 4(b), request that Equant make an Advance to SITA SC (or
the applicable SITA Group Company) to be applied by SITA SC (or the
applicable SITA Group Company) in or towards its working capital
requirements in connection with the purchase of the relevant Funded Asset.
Unless otherwise agreed, the amount of the Advance will be the total of
the actual expenditures from the previous month.
 
	(b)	 	
The amount of each Advance shall be in Dollars and shall be made on the
same date as set out in subparagraph 4(c)(ii).
 
	(c)	 	
Each Advance shall be interest free.
 
	(d)	 	
SITA SC (or the applicable SITA Group Company) shall repay each Advance
on the date the next Advance is made by Equant to SITA SC (or the
applicable SITA Group Company), except that, if at any time Equant
determines that no further Advances will be made, the outstanding Advance
will be payable by SITA SC (or the applicable SITA Group Company) on
demand.
 
	8.	 	
PAYMENTS
 
	(a)	 	
All payments by either SITA SC (or the applicable SITA Group Company) or
Equant to the other under this EAFA and the Note shall be made to such
bank account as Equant and SITA SC (or the applicable SITA Group Company)
may notify to the each other for this purpose.
 
	(b)	 	
On the date of each funding under the Note, the payment obligations of
Equant with respect to the Note and to any Advance to be made on that
date, and the payment obligations of SITA SC (or the applicable SITA Group
Company) with respect to any Advance to be repaid on that date, shall be
set-off so that only the remaining balance shall be payable by the
relevant party.
 
	(c)	 	
If a payment under this EAFA and the Note is due on a day which is not a
Business Day then the due date shall be the next such Business Day in the
same calendar month (if there is one) or the preceding such banking day
(if there is not).
 
	(d)	 	
The fact that the Note may have been repaid in whole or in part, or an
Advance repaid in whole or in part, prior to a Payment Date shall not
affect the obligation of SITA SC (or the applicable SITA Group Company) to
pay interest on that Payment Date with respect to the relevant period
during which the relevant part of the Note or Advance, as the case may be,
was outstanding.
 
	9.	 	
RESTRICTIONS ON DEALING

Except as agreed by Equant:

	 	 	 
	(a)	 	
SITA SC (or the applicable SITA Group Company) shall not, either in a
single transaction or in a series of transactions, whether related or not
and whether voluntarily or involuntarily, sell transfer, grant a lease, or
otherwise dispose of all or any part of the Funded Assets; and
 
	(b)	 	
SITA SC (or the applicable SITA Group Company) shall not create or permit
to subsist any mortgage, pledge, lien, charge, assignment, hypthothecation
or security interest or any other agreement or arrangement having the
effect of conferring a security interest in any of the

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-5	Dated:  30 November 2001

 

	 	 	 
	 	 	
Funded Assets other than liens or such security interests arising by
operation of law in the ordinary course of business and securing amounts
not more than thirty (30) days overdue.
 
	10.	 	
RESPONSIBILITIES OF SITA
 
	(a)	 	
SITA SC (or the applicable SITA Group Company) will keep the Funded
Assets in substantial repair and in good working order and condition, all
in accordance with the P&I. Unless Equant otherwise agrees, SITA SC (or
the applicable SITA Group Company) shall keep each Funded Asset at the
relevant location specified in the Monthly Schedule.
 
	(b)	 	
Where requested by Equant, and in accordance with P&I, SITA SC (or the
applicable SITA Group Company) shall effect or procure to be effected such
insurance of the Funded Assets, as a prudent company in a similar business
as SITA SC (or the applicable SITA Group Company) would effect, all such
insurance policies to be in amount and in form and with an insurance
company or underwriters reasonably acceptable to Equant.
 
	(c)	 	
SITA SC (or the applicable SITA Group Company) shall not do or permit
anything to be done which may make void or voidable the relevant insurance
policy covering any of the Funded Assets.
 
	(d)	 	
SITA SC (or the applicable SITA Group Company) shall promptly pay all
premiums and take actions necessary or appropriate to keep the relevant
insurance policies in force.
 
	(e)	 	
SITA SC (or the applicable SITA Group Company) shall apply all proceeds
received or receivable under any insurance policy in respect of the Funded
Assets towards replacement, restoration or repair of the relevant Funded
Assets or make a payment under subparagraph 6(g)(ii).
 
	(f)	 	
Funded Assets not insured by SITA SC (or the applicable SITA Group
Company) will be insured by Equant. All insurance policies taken out by
SITA SC (or the applicable SITA Group Company) and Equant shall include
both SITA SC and Equant as co-insured parties.
 
	11.	 	
GENERAL

(a)  This EAFA and the Note and the obligations and rights of SITA SC (or the
applicable SITA Group Company) hereunder and thereunder shall be binding upon
and inure to the benefit of SITA SC (or the applicable SITA Group Company) and
Equant and their respective successors; and (b) neither party shall transfer or
assign the Note nor any interest therein either in whole or in part without the
agreement of the other party thereto, not to be unreasonably withheld.

	 	 	 
	12.	 	
LOST OR DESTROYED NOTE

If the Note is defaced, lost or destroyed it may be renewed on such terms (if
any) as to evidence and indemnity as SITA SC (or the applicable SITA Group
Company) may require but so that in the case of defacement, the defaced Note
shall be surrendered before a new Note is issued.

	 	 	 
	

	Transition and Management
Agreement
Schedule F (Equant Asset Funding
Arrangements)
Restated Version with Amendment 1 (Errata)	F-6	Dated:  30 November 2001

 

SCHEDULE G

NETWORK ACCESS AGREEMENT

	 	 	 
	 	 	
dated: 29 June 2001 (this “Agreement”)

between

	 	 	 
	 	 	
Equant N.V., a Dutch company having its registered office at 21-23
Gatwickstraat, 1043 GL Amsterdam (“Equant N.V.”)

and

	 	 	 
	 	 	
Société Internationale de Télécommunications Aéronautiques S.C., a
Belgian co-operative company having its registered office at 14 avenue
Henri Matisse, B-1140, Brussels, Belgium (“SITA SC”)

(each, a “Party” and together, the “Parties”).

Recitals:

	 	 	 
	(a)	 	
Equant owns and operates a global network, which SITA uses to provide
services to the air transport community.
 
	(b)	 	
SITA owns and operates a telecommunications network in Applicable
Countries to provide services to the air transport community.
 
	(c)	 	
SITA wishes to provide its customers in all Applicable Countries with
seamless, global network services, and therefore wishes to have access to
the Equant network in order to provide global transport and termination of
connections in other Countries.
 
	(d)	 	
In order for the services provided by SITA to be seamless, the In-Country
Network operations and processes of SITA must be fully integrated and
operated with the Equant global network as if their respective networks
functioned as one network.
 
	(e)	 	
As SITA owns and operates the separate In-Country Networks providing
in-country connectivity, while Equant owns and operates a single, global
network connecting those separate In-Country Networks, the SITA networks,
and related In-Country Operations, necessarily will function in a
subsidiary relationship to the Equant network and operations if the
Parties are to achieve their joint objective of seamless connectivity
across their networks.
 
	(f)	 	
Equant agrees to allow SITA to have global network access on the
conditions set forth herein.

The Parties hereto agree as follows:

	 	 	 
	1.	 	
Definitions:
 
	 	 	
“Applicable Countries” shall mean all Countries where SITA holds network
resources.

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-1	Dated:  30 November 2001

 

	 	 	 
	 	 	
“Equant” means Equant N.V. or the applicable Equant group company.
 
	 	 	
“In-Country Network Operations” shall mean the operation and management
of the In-Country Network in Applicable Countries.
 
	 	 	
“In-Country Network” shall mean the network resources that SITA operates
as a network within a Country under the applicable regulatory authority
and which this Agreement permits SITA SC to connect to Equant’s global
network.
 
	 	 	
“P&I” shall mean policies, procedures and instructions issued by Equant
from time to time relating to (a) SITA’s access to Equant’s global
network, (b) the operational standards (including any corporate policies
and procedures issued by Equant) to be followed by SITA as a condition to
this access, and (c) the network management operations and maintenance of
the interconnected networks to ensure their seamless operation.
 
	 	 	
“SITA” means SITA SC or the applicable SITA group company.
 
	2.	 	
Interpretation
 
	 	 	
In this Agreement, unless the express context indicates or requires a contrary intention:
 
	2.1	 	
words suggesting the singular include the plural and vice versa;
 
	2.2	 	
words suggesting any gender include any other gender;
 
	2.3	 	
references to a person include a company, corporation, partnership, joint
venture, co-operative company, individual, unincorporated or incorporated
association or organisation or statutory authority;
 
	2.4	 	
headings used in this Agreement are for ease of reference only and shall
not affect the interpretation of this Agreement;
 
	2.5	 	
references to any agreement or document (including to this Agreement) are
to that agreement or document as amended, supplemented, varied or replaced
from time to time; and
 
	2.6	 	
use of the words “includes” or “including” (or any variations of them)
shall be deemed to be followed by the words “without limitation”.
 
	3.	 	
Connection of SITA to Equant’s global network
 
	3.1	 	
Equant agrees that the In-Country Network of SITA shall be connected to
Equant’s global network on the terms and conditions set out herein.
 
	3.2	 	
SITA agrees to operate the In-Country Network in accordance with the P&I
in consideration for its continued right to interconnect with the Equant
network.
 
	3.3	 	
Equant and SITA SC acknowledge that nothing in this Agreement allows
either of them to utilise such interconnections, or their interconnected
networks, to provide services to each other or third persons that they are
not authorised to provide in Applicable Countries.
 
	4.	 	
Responsibilities of SITA

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-2	Dated:  30 November 2001

 

	 	 	 
	4.1	 	
SITA is responsible for the maintenance and development of the
relationship between itself and both the public telecommunications
operator and the relevant telecommunications regulator in Applicable
Countries.
 
	4.2	 	
SITA is responsible for the provision for its In-Country Network in
accordance with the P&I including the provisioning of capacity within the
In-Country Network in order to maintain the reliability of traffic
management between the In-Country Network and Equant’s global network and
to provide Equant with sufficient predictability in the planning,
deployment and operation of the amount of capacity required throughout its
global network to provide connectivity to individual countries (including
those in which the In-Country Networks are located).
 
	4.3	 	
SITA will issue instructions to its network staff in Applicable
Countries to follow and implement the P&I.:
 
	4.4	 	
SITA is responsible for employing network staff:

	 	 	 
	(a)	 	
in sufficient numbers; and
 
	(b)	 	
with suitable skills,

	 	 	 
	 	 	
to operate the In-Country Operations in accordance with the P&I.
 
	4.5	 	
If Equant notifies SITA that, in its opinion:

	 	 	 
	(a)	 	
insufficient network staff have been allocated, or
 
	(b)	 	
specified network staff members are not appropriate,

	 	 	 
	 	 	
to conduct In-Country Operations in accordance with the P&I, SITA must
promptly take such steps as are necessary to remedy such deficiency
(including redeploying network staff which Equant considers are not
sufficiently qualified).
 
	4.6	 	
SITA shall provide for the housing of its network assets in suitably
prepared facilities, including as applicable surface, air conditioning,
electricity, security and supervision all as advised by Equant in
accordance with the P&I.
 
	4.7	 	
SITA shall provide that the interconnection between the In-Country
Network and any third party network is carried out in accordance with the
P&I in such a way as not to adversely affect the Equant global network.
 
	4.8	 	
SITA shall be responsible for complying with any relevant statutory
obligations that apply to In-Country Network Operations, including in
relation to its obligations:

	 	 	 
	(c)	 	
as an employer;
 
	(d)	 	
in respect of its regulatory licence or other authority to
operate;
 
	(e)	 	
compliance with relevant tax laws;

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-3	Dated:  30 November 2001

 

	 	 	 
	(f)	 	
complying with relevant audit requirements; or
 
	(g)	 	
meeting other applicable statutory requirements.

	 	 	 
	5.	 	
Responsibilities of Equant
 
	 	 	
Equant will provide P&I to SITA as reasonably necessary so as to
facilitate the orderly functioning of the In-Country Operations and to
enable the seamless interoperation of the In-Country Networks with the
Equant network, including in relation to:

	 	 	 
	(a)	 	
operation and connection instructions, including technical,
operational and reporting procedures;
 
	(b)	 	
the selection, procurement, restoration, maintenance,
retirement, and replacement of network resources that will be
compatible with the Equant network;
 
	(c)	 	
capacity provisioning within the In-Country Networks;
 
	(d)	 	
network design, planning, engineering, provisioning,
maintenance, restoration, topology, and technical and architectural
standards and protocols (including the interconnection arrangements
with other networks that will be interconnected to the Equant
network by being interconnected with the In-Country Networks);
 
	(e)	 	
methods and processes for sourcing other supplies relating to
the network resources; and
 
	(f)	 	
SITA network staff, in order to provide for seamless network
management and operational activities.

	 	 	 
	6.	 	
Term and Termination

This Agreement shall commence on the Effective Date and shall be co-terminous
with the Transition and Management Agreement.

	 	 	 
	7.	 	
General
 
	7.1	 	
Assignment:

	 	 	 
	(a)	 	
A Party may not assign its rights or transfer its
obligations under this Agreement without the prior written consent
of the other Party, except that

	 	 	 
	(i)	 	
no consent is required in the case of
assignment by a Party to one of its majority owned
subsidiaries;
 
	(ii)	 	
no consent is required for Equant to assign
its rights and transfer its obligations under this
Agreement to the successor entity of the merger of Equant
and Global One.

	 	 	 
	(b)	 	
Any attempt by a Party to assign its rights or transfer its
obligations under this Agreement in violation of this Clause 7.1 is
null and void.

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-4	Dated:  30 November 2001

 

	 	 	 
	7.2	 	
Amendments: This Agreement may be amended only in writing and signed on
behalf of both Parties by authorised signatories.
 
	7.3	 	
Waiver:

	 	 	 
	(a)	 	
If a Party has a right arising from the other Party’s
failure to comply with an obligation under this Agreement and
delays in exercising or does not exercise that right then that
delay in exercising or failure to exercise is not a waiver of that
right or any other right.
 
	(b)	 	
A waiver by a Party of a right in one instance does not
constitute a waiver of that right or any other right in any other
instance, without regard to the similarity of circumstances, unless
the Party specifically waives such right or other right in the
second instance.
 
	(c)	 	
Any waiver of a right by a Party must be in writing in a
notice transmitted as provided in Clause 7.5 executed by the Party
making such waiver.

	 	 	 
	7.4	 	
Severability. If any provision is deemed invalid, illegal or
unenforceable, then the remainder of this Agreement shall stand; provided,
however, that the Parties shall negotiate in good faith to adjust the
terms of this Agreement to ensure that the Parties original commercial
intentions are achieved as much as reasonably possible. The commercial
intentions of this Agreement are based on symmetry and balance between the
Parties.
 
	7.5	 	
Notices:

	 	 	 
	(a)	 	
A Party notifying or giving notice under this Agreement
will give notice:

	 	 	 
	(i)	 	
in writing and in the English language;
 
	(iii)	 	
by (A) hand delivery or sent by prepaid
first class post, (B) air courier delivery service to that
address, or (C) electronic mail or facsimile (only if
confirmed by telephone); and
 
	(iv)	 	
addressed to the other Party to the
attention of the designated person(s) set out below or as
altered by notice given in accordance with this Clause 7.5:

	 	 	 
	For SITA SC:	 	
Secretary General
	 	 	
Société Internationale de Télécommunications Aéronautiques S.C
	 	 	
26, Chemin de Joinville
	 	 	
P.O. Box 31
	 	 	
1216 Cointrin – Geneva
	 	 	
Switzerland
 
	 	 	
Copy to:
	 	 	
General Counsel
	 	 	
Société Internationale de Télécommunications Aéronautiques S.C
	 	 	
26, Chemin de Joinville
	 	 	
P.O. Box 31

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-5	Dated:  30 November 2001

 

	 	 	 
	 	 	
1216 Cointrin – Geneva
	 	 	
Switzerland
 
	For Equant:	 	
Vice President and General Manager SITA Account
	 	 	
Equant N.V.
	 	 	
400 Galleria Parkway, S.E.
	 	 	
Atlanta GA 30339-5980
	 	 	
United States of America
 
	 	 	
Copy to:
	 	 	
General Counsel
	 	 	
Equant N.V.
	 	 	
215-217 Bath Road
	 	 	
Slough, Berkshire SL1 4AA
	 	 	
England, United Kingdom
	 	 	
+44 (208) 321 4602 (voice)
	 	 	
+44 (207) 734 5768 (facsimile)

	 	 	 
	(h)	 	
Service of Notice

	 	 	 
	(i)	 	
A notice given in accordance with this
Clause 7.5 is deemed received and is effective:

	 	 	 
	(A)	 	
if hand delivered to the other
Party, on the date of delivery;
 
	(B)	 	
if sent by prepaid first-class
post, five (5) business days after the date of posting;
 
	(C)	 	
if sent by courier delivery
service, electronic mail or facsimile, on the date of
delivery.

	 	 	 
	(ii)	 	
Except for notices sent by facsimile, in
each instance the Party delivering such notice shall for
the convenience of the Party or Parties to which such
notice is delivered also transmit such notice by facsimile;
provided, however, that the failure to do so shall not
affect either the fact or the date and time of delivery of
such notice.

	 	 	 
	7.6	 	
Relationship of Parties

	 	 	 
	(a)	 	
Nothing in this Agreement or any circumstances associated
with it or its performance shall give rise to any relationship of
agency, partnership or employer and employee between the Parties.
 
	(b)	 	
Except as expressly authorised in this Agreement, neither
Party shall have any authority to act or make representations on
behalf of the other Party, nor to create contractual liability to a
third party on behalf of (or otherwise contractually bind) the
other Party.

	 	 	 
	7.7	 	
Governing Law: The construction, performance, validity and remedies for
breach of this Agreement shall be governed by English law.
 
	7.8	 	
Dispute Resolution: All disputes, controversies, or differences that
arise between the Parties, out of, in relation to, or in connection with
this Agreement, or for the breach thereof,

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-6	Dated:  30 November 2001

 

	 	 	 
	 	 	
shall follow such informal dispute resolution procedures are as agreed
between the Parties from time to time, and thereafter shall be finally
settled by an arbitration under the ICC Rules seated in London, England,
in the English language.
 
	7.9	 	
Counterparts: This Agreement may be executed in several counterparts,
each of which shall be deemed an original and all of which taken together
will constitute one single agreement between the Parties.
 
	7.10	 	
Confidentiality: Each Party shall treat the contents of this Agreement
and information provided hereunder as confidential in accordance with
nondisclosure agreements executed separately by the Parties.
 
	7.11	 	
Third Parties: Third Party Beneficiaries

	 	 	 
	(i)	 	
Nothing in this Agreement, express or implied, is intended to
confer upon any Person other than Equant or SITA SC (and the SITA
Group Companies), or their respective successors or permitted
assignees any rights or remedies under or by reason of this
Agreement.
 
	(j)	 	
The Parties do not intend that any term of this Agreement
should be enforceable by virtue of the Contracts (Rights of Third
Parties) Act 1999 by any person who is not a Party to this
Agreement.

	 	 	 
	Authorised Signatory on behalf of	 	
Authorised Signatory on behalf of
	 
	Equant:	 	
SITA
	 
	 

Name	 	
 

Name
	 
	 

Title	 	
 

Title

	 	 	 
	

	Transition and Management
Agreement
Schedule G (Network Access Agreement)
Restated Version with Amendment 1 (Errata)	G-7	Dated:  30 November 2001

 

Schedule H

HR Administrative Services Arrangement

	 	 	 
	1.	 	
HR Administrative Services
 
	1.1	 	
Equant will provide human resources administrative services (the “HR
Services”) to SITA SC in respect of Network Staff excluding those staff
whose primary responsibilities relate to statutory obligations (e.g.,
accounting, tax, legal and regulatory) and SITA Specific Staff.
 
	1.2	 	
As part of the HR administrative services, Equant will assist SITA SC to
implement its HR policies in a consistent and equitable manner.
 
	1.3	 	
Equant will provide the HR administrative services in a professional
manner in accordance with standards customary in the industry, to
specifically include standards which will enable SITA SC to comply with
its applicable statutory and contractual obligations (e.g., the Network
Staff’s employment contracts or relevant collective agreements), and
standards with respect to recruiting, employee relations and HR data
management and reporting.
 
	1.4	 	
Equant will have HR staff of suitable qualifications and an HR
organisational structure in place sufficient to support the provision of
HR administrative services in respect of Network Staff on a global basis.
Equant will keep SITA SC informed as to such HR organisational structure
(and any changes thereto). Equant will also inform itself of, and take
into consideration, local custom and practice in performing the HR
administrative services.
 
	1.5	 	
Equant will assist the relevant SITA SC HR representative in all matters
related to trade unions, work council negotiations and any other public
representations in respect of Network Staff.
 
	1.6	 	
Equant will assist SITA SC to develop compensation and benefit plans for
the Network Staff that are competitive within the local applicable
industry. Where Equant determines that Network Staff are not currently
being provided with compensation and benefits that are competitive within
the local applicable industry, Equant will recommend modifications.
 
	1.7	 	
Equant will assist SITA SC in the recruitment of its Network Staff with
the objective of recruiting appropriately qualified and experienced
personnel to fill Network Staff positions.
 
	1.8	 	
Where applicable, Equant will provide training and development services,
designed to provide Network Staff with the necessary skill sets.
 
	1.9	 	
Equant will assist SITA SC in the implementation of redundancy and other
employment termination processes and procedures.
 
	1.10	 	
Equant will provide, either directly or through third parties, payroll
services in all relevant countries.
 
	1.11	 	
Equant shall assist SITA (i) to maintain its HR data records in respect
of its Network Staff, and (ii) to access such data as required by SITA SC
to meet its obligations as an employer, including electronic on-line
access to PeopleSoft (or any successor of PeopleSoft) by mutually agreed
individuals in a format and frequency as agreed from time to time. Equant
employees with access to HR data records will be required to sign a
non-disclosure agreement

	 	 	 
	

	Transition and Management
Agreement

Schedule H (HR Administrative Services Arrangement)

Restated Version with Amendment 1 (Errata)	H-1	Dated: 30 November 2001
	 	 	 

 

	 	 	 
	 	 	
covering the information contained in such HR data records, in a form
reasonably designated by SITA SC.
 
	1.12	 	
SITA will provide such information as reasonably required by Equant to
assist Equant to carry out its functions and responsibilities under this
Agreement. Equant shall not be responsible with regard to any
pre-existing contractual obligations as of the Effective Date to the
extent they are not disclosed by SITA SC to Equant or Equant is not
otherwise aware of them.
 
	1.13	 	
Equant will use commercially reasonable efforts to provide for the
continuity in function of suitably qualified staff to perform the HR
Services.
 
	2.	 	
Secondment

Equant will second employees to SITA SC on a full- or part-time basis for the
purpose of managing the implementation of the above HR administrative services
with respect to Network Staff for so long as Equant provides such HR
administrative services to SITA SC. The specifics of the secondment will be
mutually agreed, but will be consistent with the following:

	 	 	 
	2.1	 	
The seconded employees will report to senior SITA SC HR managers in
respect of their SITA SC duties;
 
	2.2	 	
SITA SC will provide such staff with reasonable office accommodation,
business cards, and stationery, and other items corresponding to their
role and position; and
 
	2.3	 	
Unless otherwise mutually agreed, (i) SITA SC will put such employees who
are seconded to SITA SC on a full-time basis on the SITA SC payroll and
will provide such employees such salary and benefits as are commensurate
with their position and consistent with SITA SC’s benefits plans; and (ii)
any such employees who are seconded to SITA SC on a part-time basis will
remain on Equant’s payroll.

	 	 	 
	

	Transition and Management
Agreement

Schedule H (HR Administrative Services Arrangement)

Restated Version with Amendment 1 (Errata)	H-2	Dated: 30 November 2001
	 	 	 

 

Schedule I

Workshops

	 	 	 
	1.	 	
GENERAL PRINCIPLES
 
	 	 	
Workshops are defined as the LNO Field Services (Non EIS) organisation
mainly performing maintenance and installation services both for network
and non-network services. Workshop includes the staff and its first
management level (known as “TC”), the premises used, the set of tools and
equipment used to perform the work (toolbox, cars...), the technical
installations used in the normal course of the workshop work (known as
“Lab”), the non-network related activities spare parts stocks.
 
	1.1	 	
The workshops in the countries listed in Appendix 1 will not transfer to
Equant because their network activity does not exceed the 75% threshold
stipulated in the HOA :

	 	 	 
	(a)	 	
Unless otherwise agreed by the two parties, those workshops
will continue to be hosted in the same premises. They will continue
to use the same systems and tools unless new systems and tools
become available.
 
	(b)	 	
For avoidance of any doubt, the list of workshop staff that
describes the list of staff who will not transfer to Equant is
presented in Appendix 2.
 
	(c)	 	
As of the Effective Date, the costs associated to those
workshops will be borne by SITA.

	 	 	 
	1.2	 	
As of the Effective Date, SITA delegates the management of those
workshops described in Appendix 1 to Equant.

	 	 	 
	(a)	 	
Equant will not charge any additional charge to SITA for this
management service.
 
	(b)	 	
Under this management service, Equant will not perform any
process or organisation modification without SITA’s agreement.

	 	 	 
	1.3	 	
SITA and Equant will use commercially reasonable endeavours to effect
progressive take-over by SITA of the workshops management.

	 	 	 
	(a)	 	
To achieve this goal, the parties will jointly develop and
agree a transition plan by September 30th 2001.
 
	(b)	 	
The parties’ objective is to have this Transition being
completed by December 31st 2001.

	 	 	 
	1.4	 	
In a limited number of cases, SITA agrees to split the workshops, subject
to further validation regarding labour/regulatory issues and hours of
cover. In those cases where the split will be done and as an exception to
the point A above, a number of workshop’s staff will then transfer to
Equant as per the table below to perform network installation and network
maintenance activities.

	 	 	 
	

	Transition and Management
Agreement

Schedule (Workshops)

Restated Version with Amendment 1 (Errata)	I-1	Dated: 30 November 2001
	 	 	 

 

	 	 	 	 	 	 	 
	Country	 	City	 	Number of staff
	 
	[*]	 	

	 	 		 
	 	 	

	 	 		 
		 	
	 	 		 
	 	 	
	 	 		 
	 	 	

	 	 		 
		 	

	 	 		 
		 	

	 	 		 
		 	

	 	 		 
		 	

	 	 		 

	 	 	 
	(a)	 	
SITA and Equant will use commercially reasonable endeavours
to perform this split and transfer within three months as of the
Effective Date.

	 	 	 
	1.5	 	
As of the Effective Date, SITA will provide continuity of network and
non-network services (scope, coverage, locations...) provided today by
those workshops defined in Appendix 1 to either Equant or the SITA Equant
JV.

	 	 	 
	(a)	 	
Charges for the services rendered by SITA to Equant will be
analysed and agreed as described in point 2 below.
 
	(b)	 	
SITA and Equant will jointly work at finalising a contract to
support both network and non-network related services rendered by
SITA workshops to Equant within 3 months as of the Effective Date. A
SLA defining bonuses and penalties will be part of this contract.

	 	 	 
	1.6	 	
SITA will undertake to support the same standards of service and range of
services that are provided by Equant organisation for installation and
maintenance activities.
 
	2.	 	
NETWORK AND NON NETWORK SERVICES SUPPORT

The following detailed principles will rule the network and non network support
services rendered by SITA workshops to Equant:

	 	 	 
	2.1	 	
Unless otherwise agreed by both parties, SITA will maintain its workshops
within the same premises and will provide the same level of coverage as of
the Effective Date.
 
	2.2	 	
In continuity to the normal practise that has prevailed under the JVA,
any services rendered by the workshops today outside of maintenance and
installation will continue to be rendered to Equant by SITA workshops in
the future.
 
	2.3	 	
The two parties will agree within 30 days from the signature date the
charging scheme for workshop services based on the following:

	 	 	 
	(a)	 	
Use the same pricing principles as was adopted in
[*].
 
	(b)	 	
Review and agree hours for installation and maintenance per
type of equipment.

	 	 	 
	

	Transition and Management
Agreement

Schedule (Workshops)

Restated Version with Amendment 1 (Errata)	I-2	Dated: 30 November 2001
	 	 	 

 

	 	 	 
	(c)	 	
Review and agree hourly rates per country.
 
	(d)	 	
In any case, SITA will ensure that the pricing scheme agreed
when applied to [*] network installation and maintenance activity,
would not exceed the agreed amount of [*] per year. The agreed
amount of [*] would be reduced by the cost of workshop staff
transferred to Equant in the countries where a workshop split will
take place as per the table above.
 
	(e)	 	
Where appropriate, adjustments will be made to the MRC as per
the Pricing working group principles.
 
	(f)	 	
Equant can elect to terminate in a given country whole or
part of the network support services rendered by SITA to Equant
provided that a six months notice period is given to SITA. Should
there be any eventual staff termination costs linked to this
decision, Equant will bear them. It is agreed that SITA will use
commercially reasonable endeavours to limit the cost exposure linked
with this termination. It is anticipated that Equant would hire the
staff directly responsible for the support of the Network.
 
	(g)	 	
Administration and reporting frequency and requirements will
be agreed within three months as of the Effective Date.

	 	 	 
	

	Transition and Management
Agreement

Schedule (Workshops)

Restated Version with Amendment 1 (Errata)	I-3	Dated: 30 November 2001
	 	 	 

 

Appendix 1: List of countries in which Workshops will not transfer to Equant

[*]
	 	 	 
	

	Transition and Management
Agreement

Schedule (Workshops)

Restated Version with Amendment 1 (Errata)	I-4	Dated: 30 November 2001
	 	 	 

 

Appendix 2: List of workshops staff who will not transfer to Equant

[*]

	 	 	 
	

	Transition and Management
Agreement

Schedule (Workshops)

Restated Version with Amendment 1 (Errata)	I-1	Dated: 30 November 2001

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]