Document:

Network Outsourcing Agreement

 Exhibit 10.21 
  Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [*****]. A complete version of
this exhibit has been filed separately with the Securities and Exchange Commission. 
   

			
	Network Management Outsourcing Agreement	  	

		
	Bank of South Pacific Ltd	  	Network Management Outsourcing Agreement
		
		  	

  

 Datec Contact Details 
  

			
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	Commercial in Confidence	  	Page 2	  	May 2004
	
	 Network Management Outsourcing Agreement
  
 ***** CONFIDENTIAL TREATMENT REQUESTED

			
	 Bank Of South Pacific Ltd
  
 Document outline prepared by Des Kearse: Datec PNG Ltd May 2004
	  	

 Document Distribution, Approval and Revision History 
 Distribution 
 This document has been distributed to 
  

			
	 Name
	  	 Title-Company

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

			
	 Name
	  	 Title

	  	  	  
	  	  	  
	  	  	  
	  	  	  

 Revision History 
  

			
	 Date of this revision:
	  	 Date of Next revision: (date)

  

							
	 Revision
 Number
	  	Revision
Date	  	 Summary of Changes
	  	 Changes marked

		  		  		  	
		  		  		  	
		  		  		  	

  

					
	Commercial in Confidence	  	Page 3	  	May 2004
	
	 Network Management Outsourcing Agreement
  
 ***** CONFIDENTIAL TREATMENT REQUESTED

 Abbreviations 
  

			
	 Bank South Pacific Limited
	  	BSP
		
	 Datec PNG Limited
	  	Datec
		
	 Business Continuity Planning
	  	BCP
		
	 Hardware, Maintenance, Support Services for designated Equipment
	  	Break Fix
		
	 BSP Customer Business Manager
	  	CBM
		
	 Disaster Recovery Plan
	  	DRP
		
	 Financial Point of Sale
	  	FPOS
		
	 Local Area Network
	  	LAN
		
	 Managed Third Parties
	  	MTP
		
	 Moves, Adds and Changes
	  	MACs
		
	 Network Terminal Unit
	  	NTU
		
	 Request for Service
	  	RFS
		
	 Service Level Agreement
	  	SLA
		
	 Single Point of Contact
	  	SPOC
		
	 Wide Area Network
	  	WAN

  

					
	Commercial in Confidence	  	Page 4	  	May 2004
	
	Network Management Outsourcing Agreement

 Definitions 
 “Agreement” means this agreement. The Network Management Outsourcing Agreement. 
 “CPI”
means an amount determined by reference to All Groups Indexes for Urban Areas being the figure relating to the weighted urban average for PNG contained in the Consumer Price Index published by the Papua New Guinea Bureau of Statistics each
quarter in the Papua New Guinea Statistical Bulletin. 
 “Help Desk” means a physical location within Datec’s head office designated as
an immediate contact point to provide service assistance to customers. 
 “Material Breach” includes (but is not necessarily limited to) the
occurrence of any or more of the following: 
  

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

  

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

  

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

  

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

  

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

 “Business
Hours” means Monday to Friday 07.30 hours to 18.00 hours. 
  

					
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	Network Management Outsourcing Agreement

 TABLE OF CONTENTS 
  

					
	 OVERVIEW
	  	
	 1.1
	  	Introduction	  	10
	 1.2
	  	Document Structure	  	10
	 1.3
	  	Agreement Assumptions	  	10
	 1.4
	  	Contract Term	  	10
	 1.5
	  	Hours of Support	  	10
		
	The Datec (PNG) LTD Deliverables	  	
	 2.1
	  	General Statements	  	11
	 2.2
	  	Physical Boundaries And Demarcation Points	  	11
	 2.3
	  	Network Operations Management	  	12
	 2.4
	  	Systems And Technical Support	  	13
	 2.5
	  	Network Virus Management	  	14
	 2.6
	  	Internet Services	  	14
	 2.7
	  	Management Tools	  	14
	 2.8
	  	Document Management	  	15
	 2.9
	  	Related Software Distribution	  	15
	 2.10
	  	Technology (Equipment) Refresh Planning And Implementation Recommendations	  	16
	 2.11
	  	Performance Management	  	16
	 2.12
	  	Capacity Management	  	17
	 2.13
	  	Managed Third Parties (MTP)	  	18
	 2.14
	  	Moves, Adds And Changes (MACs)	  	18
	 2.15
	  	Help Desk Services	  	19
	 2.16
	  	Hardware, Software And Equipment Support	  	20
	 2.17
	  	User Logon And Password Administration for Wide Area Network (WAN)	  	21
	 2.18
	  	Project Services	  	21
	 2.19
	  	Asset Management	  	22
	 2.20
	  	Security Services	  	22
	 2.21
	  	Business Continuity Planning (BCP) And Disaster Recovery Plan	  	23
	 2.22
	  	Change Management	  	23
	 2.23
	  	Backup Requirements	  	24
	 2.24
	  	Designated Locations	  	24
		
	Performance Standards	  	
	 3.1
	  	General Requirements	  	25
	 3.2
	  	Measurement And Monitoring Tools	  	25
	 3.3
	  	All Data And Supporting Information Confidential	  	26
		
	Reports	  	
	 4.1
	  	Reporting	  	26
	 4.2
	  	Types Of Reports	  	26
	 4.3
	  	Structure Of Reports	  	27

  

					
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	Network Management Outsourcing Agreement

					
	 Personnel
	  	
	 5.1
	  	 Standards Of Datec Personnel
	  	27
	 5.2
	  	 Replacement At BSP’s Request
	  	28
	 5.3
	  	 No Right To Require Termination
	  	28
	 5.4
	  	 Restraints On Engagement Of BSP Personnel
	  	28
	 5.5
	  	 Enforceable Restraint
	  	28
	 5.6
	  	 Employer Obligations
	  	28
	 5.7
	  	 Security And Occupational Health And Safety
	  	29
		
	 Audits And Record Keeping
	  	
	 6.1
	  	 Record Keeping
	  	29
	 6.2
	  	 Access To The Datec’s And Subcontractors Premises And Material
	  	29
	 6.3
	  	 Regular Audits For BSP Reporting
	  	29
	 6.4
	  	 Assistance
	  	29
		
	 Subcontractors
	  	
	 7.1
	  	 Approval
	  	30
	 7.2
	  	 Terms
	  	30
		
	 Pricing
	  	
	 8.1
	  	 General Principles
	  	30
	 8.2
	  	 Base Fees
	  	30
	 8.3
	  	 Price Inclusive
	  	30
	 8.4
	  	 Pricing Criteria
	  	31
	 8.5
	  	 Rebates
	  	31
		
	 Pricing Adjustments
	  	
	 9.1
	  	 CPI Adjustments
	  	31
	 9.2
	  	 Pass – Through Expenses
	  	32
	 9.3
	  	 Service Level Reviews
	  	32
		
	 Extraordinary Events
	  	
	 10.1
	  	 Extraordinary Events
	  	32
		
	 Confidentiality
	  	
	 11.1
	  	 Confidentiality
	  	32

  

					
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	Network Management Outsourcing Agreement

					
	 Returning Material, Data, Hardware, Software And Information
	  	
	 12.1
	  	 Datec’s Obligations
	  	33
	 12.2
	  	 BSP’s Obligations
	  	33
		
	 Compliance With Laws
	  	
	 13.1
	  	 Compliance
	  	33
		
	 Termination
	  	
	 14.1
	  	 Termination By BSP for Cause
	  	33
	 14.2
	  	 Termination For Change Of Control
	  	33
	 14.3
	  	 Termination By BSP For Convenience
	  	34
	 14.4
	  	 Termination By Datec For Convenience
	  	34
	 14.5
	  	 Termination Fee
	  	34
	 14.6
	  	 Sole Remedy
	  	34
	 14.7
	  	 Mitigation
	  	34
		
	 General Indemnities
	  	
	 15.1
	  	 Indemnity By Datec (PNG) LTD
	  	35
	 15.2
	  	 Enforcement Of Indemnities
	  	36
		
	 Personal Injury, Property Damage Indemnity
	  	
	 16.1
	  	 Datec Indemnifies BSP
	  	36
	 16.2
	  	 BSP Indemnifies Datec
	  	36
		
	 Risk Management
	  	
	 17.1
	  	 Insurance Coverage
	  	36
	 17.2
	  	 Terms Of Insurance
	  	37
		
	 General Conditions
	  	
	 18.1
	  	 Assignment By Datec
	  	37
	 18.2
	  	 Assignment By BSP
	  	37
	 18.3
	  	 Governing Law
	  	37
		
	 Dispute Resolution
	  	
	 19.1
	  	 Notice
	  	37
	 19.2
	  	 Escalation
	  	37
	 19.3
	  	 Expert Determination Or Mediation
	  	38
	 19.4
	  	 Expert Determination Criteria
	  	38
	 19.5
	  	 Selection Of Expert Or Mediator
	  	38
	 19.6
	  	 Procedure
	  	38

  

					
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	Network Management Outsourcing Agreement

					
		
	 Disengagement
	  	
	 20.1
	  	 Planning
	  	39
	 20.2
	  	 Implementation Of Plan
	  	39
		
	 Schedules
	  	
	 A:
	  	 Equipment List – Asset Register
	  	42
	 B:
	  	 Service Level Agreement
	  	45
	 C:
	  	 Pricing Schedule
	  	50
	 D:
	  	 Sample Moves, Adds, and Changes Form – (MAC Form)
	  	51
	 E:
	  	 Sample Request for Service Form – (RFS Form)
	  	55

  

					
	Commercial in Confidence	  	Page 9	  	May 2004
	
	Network Management Outsourcing Agreement

 OVERVIEW 
  

	1.1	Introduction 

 This Network Management Outsourcing
Agreement incorporates the terms and conditions for the provision of Network Outsourcing Services and Deliverables by Datec (PNG) LTD (Datec) to the Bank of South Pacific Limited (BSP). 
 The parties further agree that they will provide best commercial efforts for the benefit of one another to ensure that neither the BSP nor Datec are
disadvantaged throughout the fulfilment of this agreement. 
 The parties will therefore provide full assistance to each other and agree to
work proactively together to: 
  

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

  

	 	•	 	 Perform their respective obligations for the benefit of the BSP 

  

	1.2	Document Structure 

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

	1.3	Agreement Assumptions 

 The following assumptions
apply to this agreement: 
  

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

  

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

  

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

  

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

  

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

  

	1.4	Contract Term 

 The commencement date for this contract will be 16th June 2004. 
 The initial term of the contracted agreement is 5 years from the commencement date. The BSP then have the option to renew the agreement for another 5
years subject to any restructuring of the agreement as required by the parties. 
 Either party may advise the other of the impending expiry
of the then current term, generally in accordance with section 14 . 
  

	1.5	Hours of Support 

 The normal business hours for
services under this agreement will be Monday – Friday 07.30 hours to 1800 hours. 
 Twenty-Four Hour (24Hour) Help Desk will be
provided Monday to Friday outside of normal business hours. 
  

					
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	Network Management Outsourcing Agreement

 The Datec (PNG) LTD Deliverables 
  

	2.1	General Statements 

 Datec will:

  

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

  

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

  

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

  

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

  

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

  

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

 Datec will deliver the following project related Services: 
  

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

  

	2.2	Physical Boundaries And Demarcation Points 

  

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

  

	2.2.2 	BSP will have operational responsibility from the main branch switch onwards and any equipment that is connected to this. This is considered to be the Local Area Network (LAN). FPOS
links are excluded. 

  

	2.2.3 	Datec will be responsible for providing BSP with updated site information for existing Sites as necessary to satisfy BSP’s business and operational requirements as they may
change overtime. Whenever required to install a new Site on the Network, Datec will conduct a physical survey of that Site to determine Site features, implementation readiness, and specific installation needs for required standards. Site Survey
information will be recorded in a database in the network management system. Site Survey information will include definitions and clarification of: 

  

	 	(a)	current Network Services; 

  

					
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	Network Management Outsourcing Agreement

	 	(b)	Telecommunications vendor point of entry; 

  

	 	(c)	boundaries of responsibility; 

  

	 	(d)	power/UPS requirements; 

  

	 	(e)	space requirements; 

  

	 	(f)	Equipment related special requirements; 

  

	 	(g)	cabling and wiring requirements; and 

  

	 	(h)	relevant environmental requirements. 

  

	2.2.3	 Floor Space 

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

  

	2.3	Network Operations Management 

 Datec
will: 
  

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

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

 (ii) Datec will be responsible for the provision of any spare parts required to complete any repairs to the managed Network equipment.

  

	2.3.2 	Maintain a Single Point of Contact to interface with and coordinate problem determination and resolution with BSP’s appropriate support personnel and third party service
providers; 

  

	2.3.3 	Perform Incident Management to closure. Datec will provide Level 1 support by: 

 (a) entering problem information into a problem record; 
 (b) performing incident source identification and
severity impact level; 
 (c) providing feedback to users; 
 (d) invoking proper incident resolution resources; 
  

					
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	Network Management Outsourcing Agreement

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

  

	 	(f)	monitoring resolution status and document actions taken; 

  

	 	(g)	manage escalation or critical situation procedures; 

  

	 	(h)	compiling and maintain the incident resolution system; 

  

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

  

	 	(j)	maintaining a second and third-level “contacts list” system including site access requirements for business and after hours site access; 

  

	2.3.4 	Level 2 support responsibilities include: 

  

	 	(a)	performing problem analysis, trending and reporting; 

  

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

  

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

  

	 	(d)	working with vendors to resolve problems; 

  

	 	(e)	contacting other support groups and organisations; 

  

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

  

	 	(g)	escalating delays in problem resolution; and 

  

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

  

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

  

	2.4	Systems And Technical Support 

 Datec Will:

  

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

  

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

  

	 	(c)	work with BSP Personnel to communicate the effect and impact and compatibility of any changes to the Hardware and Software managed to ensure minimal business impact of such changes;

  

					
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	Network Management Outsourcing Agreement

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(m)	schedule and coordinate testing of network systems Software changes with the BSP 

  

	2.5	Network Virus Management -WAN 

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

	2.6	Internet Services 

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

	2.7	Management Tools 

 Datec will:

  

	2.7.1 	Install, configure and test the selected management tools used to support problem management (e.g. to generate automatic alerts for critical outages) 

  

					
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	Network Management Outsourcing Agreement

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

  

	2.8	Document Management 

 Datec will: 

 

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

  

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

  

	2.9	Related Software Distribution 

 Datec will:

  

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

  

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

  

	2.9.3 	ensure that the software installed are appropriately licensed; 

  

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

  

	2.9.5 	ensure that all software distributions are virus free; 

  

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

  

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

  

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

  

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

  

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

  

					
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	Network Management Outsourcing Agreement

	2.10	Technology (Equipment) Refresh Planning And Implementation 

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

	 	(a)	Management of the installation of Network Services; 

  

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

  

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

  

	 	(d)	tracking relevant Network Service information . 

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

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	2.11	Performance Management 

 Datec will:

  

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

  

	2.11.2 	enhance and continuously improve its performance of the Services; 

  

					
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	Network Management Outsourcing Agreement

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

  

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

  

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

  

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

  

	2.11.7 	monitor and report on capacity inadequacies; 

  

	2.12	Capacity Management 

 Datec will: 

 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

 Should it be determined that extra capacity is required this cost will be meet by the BSP working with Datec. 
  

					
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	Network Management Outsourcing Agreement

	2.13	Managed Third Parties (MTP) 

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

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

  

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

  

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

  

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

  

	 	(e)	communicate to designated personnel the status of MTP’s efforts to remedy a failure. 

  

	2.14	Moves, Adds And Changes (MACs) 

 As a component of
the base fee Datec will perform any required MACs that fall within the scope of work contained in this agreement. 
 Datec will also be
required to provide MACs to the BSP with pricing and costs for tasks that fall outside the agreement such as project management or the acquisition of new equipment or upgrades but not just restricted to these items. 
 On approval of any MAC Datec will be required to assist in the supervision, management and implementation of changes related to the Network and the
Services as necessary to satisfy BSP’s business and operational requirements. 
 Datec will: 
  

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

  

	 	 (b)
	 schedule the execution of the MAC; 

  

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

  

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

  

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

  

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

  

	 	(g)	notify the BSP contact person of completion of the MAC; 

  

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

  

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

  

	2.15	Help Desk Services 

 Datec will 

 

			
	2.15.1	 	provide a single-point-of-contact (SPOC) Help Desk. The Help Desk will support and have access to, and maintain, sufficient information that will facilitate knowledge of the BSP’s
business and technology environment;
		
	2.15.2	 	provide one primary Help Desk contact phone number and enable contact fax, e-mail and browser for all technology requests. This includes, but is not limited to, communication faults, Hardware
and Software failures, and general enquiries by the BSP.
		
	2.15.3	 	record, analyse and report on a regular basis, as and when required by the BSP, on calls received by the Help Desk, including details of:

  

	 	•	 	 call volumes and duration; 

  

	 	•	 	 problem trends; 

  

	 	•	 	 call abandon rate and wait times; 

  

	 	•	 	 Level 1 resolution rate; 

  

	 	•	 	 problem resolution time; 

  

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

  

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

 Provide Help Desk support, which includes: 
  

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

  

	 	•	 	 gathering the end user information; 

  

	 	•	 	 obtaining resource status; 

  

	 	•	 	 accessing on-line information; 

  

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

  

	 	•	 	 handling routine Hardware, Software, and usage problems; 

  

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

  

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

  

	 	•	 	 informing the end user of the status; 

  

	 	•	 	 calling the end user for further information; 

  

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

  

	 	•	 	 escalating delays in problem resolution; 

  

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

  

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

  

	 	•	 	 assist the BSP in removing viruses 

  

	2.16	Hardware, Software And Equipment Support 

 Datec
will: 
  

	 	(a)	process warranty claims, as applicable; 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(n)	interface with Hardware and Equipment vendors for planning and problem resolution. 

  

	2.17	 User Logon And Password Administration for Wide Area Network (WAN) 

  

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

  

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

  

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

  

	2.18	 Project Services 

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

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

  

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

  

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

  

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

  BSP Customer Business Manager (CBM) contact details: 
 [*****] 
 [*****] 
 [*****] 
 [*****] 
 [*****] 
  

					
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 ***** CONFIDENTIAL TREATMENT REQUESTED

	2.19	Asset Management 

  

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

  

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

 Datec will: 
  

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

  

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

  

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

  

	2.20	Security Services 

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

  

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

  

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

  

	 	2.20.3 	follow all security procedures in effect at the Installation Sites. BSP is responsible for site security at the Sites; 

  

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

  

	 	2.20.5 	for facilities under BSP’s control, comply with BSP’s physical security standards of which Datec receives reasonable advance written notice. 

  

	2.21 	Business Continuity Planning (BCP) And Disaster Recovery Plan (DRP) 

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

	2.22 	Change Management 

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

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

  

	 	(b)	for each change affecting the environment the Supplier will: 

  

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

  

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

  

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

  

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

  

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

  

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

  

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

 

	 	(viii)	ensure potential conflicts between changes are identified and resolved in advance of implementation; and 

  

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

  

	2.23	Backup Requirements 

 Datec Will: 

 

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	2.24	Designated Locations 

 Datec will manage the BSP WAN
operations from its Corporate Head Office located in Waigani Drive, Port Moresby. 
 In order for this to occur certain routers/switches and
associated network equipment will be located at Datec 
  

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

							
		 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	
	[*****]	 		 		 	

 Performance Standards 
  

	3.1	General Requirements 

 Throughout the term of the
agreement Datec will: 
  

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

  

	 	(b)	comply with industry standards; and 

  

	 	(c)	Datec will also maintain the BSP quality assurance procedures where applicable and agreed between the parties. 

  

	3.2	Measurement And Monitoring Tools 

 Datec will:

  

	 	(a)	perform all Service Level reporting, in a manner acceptable to the BSP 

  

					
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 ***** CONFIDENTIAL TREATMENT REQUESTED

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

  

	3.3	All Data And Supporting Information Confidential 

 Detailed supporting information and reports relating to service levels and performance will be confidential between the two parties. 
 Both parties will treat the terms of this agreement and any supporting documentation, such as emails, facsimiles and the like as confidential and may only disclose it: 
  

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

  

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

  

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

  

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

 Reports

  

	4.1	Reporting 

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

	 	4.1.1	respond to user report enquiries 

  

	 	4.1.2	follow up errors with areas providing the source data 

  

	 	4.1.3	manage reporting platform 

  

	4.2	Types Of Reports 

 Datec will make available to the
BSP 
  

	 	4.2.1	the reports identified in this document and the Service Level Agreement 

  

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

  

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

 

	 	4.2.4	such other reports as may be specified by the BSP from time to time. 

  

	4.3	Structure Of Reports 

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

	5.1	Standards Of Datec Personnel 

 Datec will:

  

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

  

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

  

	 	(c)	ensure that all Personnel comply with: 

  

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

  

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

  

	 	(iii)	all Laws; and 

  

	 	(iv)	any policies existing or introduced from time to time, including policies regarding occupational health and safety requirements, building access and physical security;

  

	 	(d)	comply with any authorisation procedures specified in this agreement before: 

  

	 	(i)	assigning any person to supply Services; or 

  

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

  

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

  

					
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	5.2	Replacement At BSP’s Request 

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

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

  

	 	ii.	in any other case, after receipt of that notice, Datec will have 48 hours in which to investigate the matters stated in the notice, discuss its findings with the BSP and resolve any
problems with the person. If, following that period the BSP requests replacement of the person, Datec must replace that person, within 60 days with another person of suitable ability and qualifications. 

  

	5.3	No Right To Require Termination 

 BSP does not have
the right to require Datec to terminate any person’s employment or contract with Datec. It is only intended to give the BSP the right to require that Datec discontinue using a particular person in the performance of Services for the BSP.

  

	5.4	Restraints On Engagement Of Datec - BSP Personnel 

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

	5.5	Enforceable Restraint 

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

  

	5.6	Employer Obligations 

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

					
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	5.7	Security And Occupational Health And Safety 

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

	6.1	Record Keeping 

 Datec must keep, and must require
subcontractors to keep, adequate accounts, documents and records to the extent required by the BSP as advised and in sufficient detail to enable Datec’s compliance with this agreement and the accuracy of its invoices to be determined.

  

	6.2	Access To Datec’s And Subcontractors Premises And Material 

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

  

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

  

	 	(b)	the Supplier Personnel; and 

  

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

 in order to enable the BSP to audit Datec’s compliance
with this agreement and for operational risk reasons. 
  

	6.3	Regular Audits For BSP Reporting 

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

	6.4	Assistance 

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

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

	7.1	Approval 

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

	 	(a)	it is in the ordinary course of business 

  

	 	(b)	Datec supplies BSP with advance notice 

  

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

  

	 	(d)	it does not adversely affect the BSP 

  

	7.2	Terms 

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

	 	i.	confidentiality and intellectual property obligations; 

  

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

  

	 	iii.	compliance with BSP’s policies and directions; 

  

	 	iv.	indemnities that protect BSP 

  

	 	v.	termination and disengagement rights; and 

  

	 	vi.	key personnel. 

 Pricing 
  

	8.1	General Principles 

 The BSP will pay Datec a base
fee plus any other fees and charges that may be agreed too during the term of the agreement but excluding, travel, freight and tax related matters. 
 BSP will be responsible for any freight and or related travel costs incurred by Datec in the execution of the services as defined in this agreement. Prior to undertaking or committing to any freight and or related travel costs Datec must
first obtain approval from BSP. 
  

	8.2	Base Fee 

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

	8.3	Price Inclusive 

 The base fee includes all costs,
expenses, taxes (except for GST/VAT), duties, levies or imposts relating to the services and Datec’s performance of its obligations under this agreement. 
  

					
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	8.4	Pricing Criteria 

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

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

  

	 	(b)	pass through expenses for the month 

  

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

  

	8.5	Rebates 

  

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

  

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

  

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

  

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

 The following definition will apply: 
 “Time to Respond” means, the time between the problem being logged and the customer being given a job number and the technician beginning the job” As this applies to Severity Levels One (1) and Two
(2) this will also include the informing of Datec’s senior operational management. 
 Pricing Adjustments 
  

	9.1	CPI Adjustments 

 No later than 30 days after the
end of each contract year the Base Fee must be increased or decreased in accordance with the increase or decrease in the CPI and such increases or decreases will be calculated by using the following formula: 
 R2 = R1 x New CPI  
                   Old CPI 
 Where:

 R2 = the Base Fee payable for the relevant 12 month period of the Term 
 R1 = the Base Fee specified the previous year. 
 New CPI means the last published CPI for a complete quarter ending prior to the date of commencement of the relevant 12-month period of the term. 
 Old CPI means the last published CPI for a complete quarter ending prior to the date of this agreement. 
  

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

	9.2	Pass – Through Expenses 

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

	9.3	Service Level Reviews 

 The BSP may conduct a
service level review at least once per 12-month period or as required with the agreement of Datec. 
 At least annually the parties will
review the Service Levels to determine whether they still reflect the requirements of the BSP. Should the BSP decide that they do not, the BSP may: 
  

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

  

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

 Extraordinary Events 
  

	10.1	Extraordinary Events 

 The BSP may notify Datec that
an Extraordinary Event has occurred or is likely to occur and provide details of such Extraordinary Event. 
 On receipt of such notice, Datec
must promptly determine and report to the BSP the effect on: 
  

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

  

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

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

 Confidentiality 
  

	11.1	Confidentiality 

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

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

  

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

  

	 	(c)	to directors and shareholders of the respective parties 

  

	 	(d)	with the consent of the party that supplied the information 

  

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

 Returning Material, Data, Hardware, Software And Information 
  

	12.1	Datec’s Obligations 

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

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

  

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

  

	12.2	BSP’s Obligations 

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

	13.1	Compliance 

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

	14.1	Termination By BSP for Cause 

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

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

  

	 	(b)	an Insolvency Event occurs in relation to Datec 

  

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

  

	 	(d)	Datec commits a series of breaches that together constitute a Material Breach. 

  

	14.2	Termination For Change Of Control 

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

					
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	Network Management Outsourcing Agreement

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

	 	(a)	if the change of control: 

  

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

  

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

 then the BSP will pay Datec according to Section 14 – “Termination” of this agreement and the Termination
Table in Schedule C. 
  

	14.3	Termination By BSP For Convenience 

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

	14.4	Termination By Datec For Convenience 

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

	14.5	Termination Fee 

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

	14.6	Sole Remedy 

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

	14.7	Mitigation 

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

	 	i.	redeploy personnel used to provide the Services 

  

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

  

	 	iii.	redeploy any equipment used to provide the Services that is not acquired by the BSP 

  

					
	Commercial in Confidence	  	Page 34	  	May 2004
	
	Network Management Outsourcing Agreement

 General Indemnities 
  

	15.1	Indemnity By Datec PNG LTD 

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

	 	(a)	Datec’s breach of; 

  

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

  

	 	(ii)	its obligations with respect to BSP Confidential Information 

  

	 	(b)	any claim, demand, proceeding or other action (‘Claim’) arising out of or related to occurrences Datec is required to insure against 

  

	 	(c)	any Claim arising out of or in any way relating to: 

  

	 	(i)	Datec, 

  

	 	(A)	engaging a contractor; or 

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(e)	any Claim arising from: 

  

	 	(i)	the Acquired Assets or 

  

	 	(ii)	managed Third Party Agreements to which Datec is or becomes a party as a consequence of the operation of this agreement; and 

  

					
	Commercial in Confidence	  	Page 35	  	May 2004
	
	Network Management Outsourcing Agreement

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

  

	15.2	Enforcement Of Indemnities 

 It is not necessary for
a party to incur expense or make payment before enforcing a right of indemnity conferred by this agreement. 
 Personal Injury, Property Damage Indemnity

  

	16.1	Datec Indemnifies BSP 

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

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

  

	 	(b)	damage to any real or tangible property, 

 caused by an act
or omission of Datec or its personnel 
  

	16.2	BSP Indemnifies Datec 

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

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

  

	 	(b)	damage to any real or tangible property, 

 caused by an act
or omission of the BSP or its personnel. 
 Risk Management 
 17.1 Insurance Coverage 
 The BSP will provide full comprehensive replacement insurance cover for all assets contained in the
Asset Register (Schedule A). 
  

					
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	Network Management Outsourcing Agreement

	17.2	Terms Of Insurance 

 The BSP will provide
documentary evidence to Datec that such insurance is in place for the term of the agreement. 
 Datec will not be held liable for service
level deficiencies related to insurance issues or an Act of God. Both parties agree to work together to resolve any such issues. 
 General Conditions

  

	18.1	Assignment By Datec 

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

	 	(a)	is not in breach of this agreement; 

  

	 	(b)	obtains the prior written consent of the BSP 

  

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

  

	 	(d)	acknowledges that it remains bound by this agreement 

  

	18.2	Assignment By BSP 

 BSP may: 
  

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

  

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

  

	18.3	Governing Law 

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

	19.1	Notice 

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

	19.2	Escalation 

 Senior executive managers of both
companies must meet together to negotiate in good faith with a view to resolving the dispute. 
  

					
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	Network Management Outsourcing Agreement

	19.3	Expert Determination Or Mediation 

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

	 	(a)	Expert determination or 

  

	 	(b)	Mediation 

 the cost of which will be at either parties own
cost 
  

	19.4	Expert Determination Criteria 

 If a Dispute is
referred for expert determination the expert must make a determination by reference to what is reasonable in the context of the overall service delivery environment but taking into account best practice standards and relevant benchmarks in Papua New
Guinea. 
 Expert determination must be completed by a mutually acceptable independent expert such as an accountant, computer expert or other
person/s as agreed between the parties to assist in the resolution of any such dispute with knowledge of the operating conditions within Papua New Guinea. 
 But whose decision will not be binding on the parties. 
 Neither party may terminate this agreement pending
the decision of such expert, but either party may approach the court for urgent relief if it is though desirable 
  

	19.5	Selection Of Expert Or Mediator 

 The parties will
attempt to agree an appropriate expert or mediator. If they are unable to agree either party may at its own cost, request the president of the Law Society of Papua New Guinea to appoint a suitably qualified person to decide the dispute and determine
the cause of action which best meets the objectives of the parties under or in the context of this agreement. 
 That person will act as an
expert and not as an arbitrator and the decision or determination must, so far as practicable, be made within 21 days of the request 
 The
expert may request either of the parties to appear before him or to provide a written explanation as to the reasons for the dispute and as to the party’s reasons for following a certain course of action. 
  

	19.6	Procedure 

 Each expert determination and mediation
conducted in accordance with this clause will be conducted in accordance with the relevant sections of the this agreement and the appropriate laws of Papua New Guinea. 
 The parties agree that a determination made by an expert will not be binding on either party. Once a determination has been made, the parties will recommence negotiation to resolve the Dispute and if they fail may
initiate court proceedings. 
  

					
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	Network Management Outsourcing Agreement

 Disengagement 
  

	20.1	Planning 

 The purpose of Disengagement is:

  

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

  

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

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

	 	(a)	as part of the Disengagement Plan: 

  

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

  

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

  

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

  

	 	(b)	the Disengagement Plan: 

  

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

  

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

  

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

  

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

  

	20.2	Implementation Of Plan 

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

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

  

	 	(b)	Datec acknowledges all Service Levels apply during Disengagement but subject to agreement of the viability of the Disengagement Plan 

  

					
	Commercial in Confidence	  	Page 39	  	May 2004
	
	Network Management Outsourcing Agreement

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

  

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

  

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

  

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

  

					
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	Network Management Outsourcing Agreement

					
	EXECUTED as an agreement.	 		 	
			
	 SIGNED SEALED AND DELIVERED
 by BANK SOUTH
PACIFIC LIMITED
 by Garth Mcllwain its duly constituted Attorney in the presence of:
	 	 )
	 	BANK OF SOUTH PACIFIC LIMITED by its Attorney who hereby states that at the time of his executing this instrument he has no notice of the revocation of the Power of Attorney Registered
No. S.25458
			
	AND I certify that the person executing this instrument is personally known to me	 	 )
	 	Under the authority of which he has executed this instrument
		 	 )
	 	
		 	 )
	 	
			
	 /s/    Illegible        
	 	 )
	 	 /s/    Illegible        

	 Witness
	 	 )
	 	Illegible
	 Name (printed)
	 	 )
	 	
			
	Signed for and on behalf of DATEC (PNG) LIMITED by the authority of the Directors and Management	 	 )
	 	
			
	/s/    Illegible        	 	 )
	 	
	 Signature of Authorised Officer
	 	 )
	 	
			
	Financial Controller	 	 )
	 	Illegible
	Title	 	 )
	 	Name of Authorised Officer (Please Print)
			
	/s/    Illegible        	 	 )
	 	Illegible
	Signature of Witness	 	 )
	 	 Name of Witness (Please Print)

  

					
	Commercial in Confidence	  	Page 41	  	May 2004
	
	Network Management Outsourcing Agreement

 Schedule A: 
 Equipment List — Asset Register 
  

							
	 Illegible    
	  	 Illegible    
	  	 Illegible    
	  	 Illegible    

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

  

					
	Commercial in Confidence	  	Page 42	  	May 2004
	
	Network Management Outsourcing Agreement

							
	 Boroko Foodworld
	  		  		  	
	 Rainbow ATM Lobby
	  	 Cisco 805
	  		  	 E/1 and S/1

	 Jacksons
	  	 Cisco 805
	  		  	 E/1 and S/1

	 Alotau
	  	 1721
	  	 Catalyst 1912
	  	 E/1 and S/6

	 Popondetta
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/2

	 Lae Town
	  	 Cisco 3640
	  	 Catalyst 2950
	  	 E/2 and S/11

	 Lae Market
	  	 1721
	  	 Catalyst 2924
	  	 E/1 and S/4

	 Lae CC
	  	 Cisco 2611
	  	 Catalyst 2950
	  	 E/2 and S/6

	 Lae - Vele Rumana
	  	 Cisco 805
	  		  	 E/1 and S/1

	 Eriku ATM Lobby
	  	 1721
	  		  	 E/1 and S/1

	 Bulolo
	  	 1721
	  		  	 E/2

	 Madang
	  	 1721
	  	 Catalyst 2924
	  	 E/2 and S/4

	 Madang - Beckslea Plaza
	  	 1721
	  		  	 E/2 and S/1

	 Wewak
	  	 Cisco 3640
	  	 Catalyst 1912
	  	 E/3 and S/4

	 Wewak ATM Lobby
	  	 1721
	  		  	 E/2 and S/1

	 Maprik
	  	 Cisco 806
	  		  	 E/2

	 Aitape
	  	 Cisco 806
	  		  	 E/2

	 Vanimo
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/2

	 Kainantu
	  	 1721
	  	 Catalyst 1912
	  	 E/1 and S/2

	 Goroka
	  	 Cisco 3640
	  	 Catalyst 2950
	  	 Fa/1. E/1 and S/6

	 Bird Of Paradaise
	  	 Cisco 805
	  		  	 E/1 and S/1

	 Kundiawa
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/2

	 Hagen
	  	 Cisco 3640
	  	 Catalyst 2924
	  	 E/2 and S/9

	 Hagen CC
	  	 Cisco 2611
	  	 Catalyst 1912
	  	 E/2 and S/10

	 Wabag CC
	  	 Cisco 2611
	  	 Catalyst 1913
	  	 E/2 and S/2

	 Wabag
	  	 Cisco 2611
	  	 Catalyst 2924
	  	 E/2 and S/2

	 Mendi
	  	 Cisco 2611
	  	 Catalyst 1912
	  	 E/2 and S/2

	 Lorengau
	  	 1721
	  	 Catalyst 1912
	  	 E/1 and S/1

  

					
	Commercial in Confidence	  	Page 43	  	May 2004
	
	Network Management Outsourcing Agreement

							
	 Kimbe
	  	 1721
	  	 Catalyst 2950
	  	 E/1 and S/4

	 Bialla
	  	 1721
	  		  	 E/2

	 Kokopo
	  	 Cisco 3640
	  	 Catalyst 2924
	  	 E/5 and S/B

	 Kokopo IRO
	  	 Cisco 2611
	  	 Catalyst 1912
	  	 E/2 and S/6

	 Rabaul
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/1

	 Kavleng
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/2

	 Namatanai
	  	 1721
	  	 Catalyst 1912
	  	 E/2

	 Lihir
	  	 1721
	  	 Catalyst 1912
	  	 E/2 and S/3

	 Buka
	  	 1721
	  	 catalyst 1912
	  	 Fa/2 and S/2

  

					
	Commercial in Confidence	  	Page 44	  	May 2004
	
	Network Management Outsourcing Agreement

 Schedule B 
 Datec Service Levels for BSP 
 Networking Outsourcing Project 
 Services to be performed are defined in the Network Management Outsourcing Agreement. These include Data services, network services and internet services. 
 As referenced in Section 8.5 of this agreement, rebates will be applied as detailed in Pricing Schedule C, should Datec not achieve the agreed Service Levels.
Rebates will apply to Severity Levels One (1) and Two (2) for all logged jobs during the agreed business hours contained in this agreement. 
  

	A.	Helpdesk / Service Calls 

  

	1(a)	During Business Hours (Monday to Friday 7.30 to 18.00) 

  

							
	 Severity
 Level
	  	 Time to Respond
	  	 Escalation Time
	  	 Comments

				
	1	  	15 minutes	  	1 hour	  	
				
	2	  	30 minutes	  	2 hours	  	
				
	3	  	1 hour	  	4 hours	  	
				
	4	  	8 hours	  	Next business day	  	

  

					
	Commercial in Confidence	  	Page 45	  	May 2004
	
	Network Management Outsourcing Agreement

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

	1(b).	After Business Hours (Outside Business hours) 

  

							
	 Severity
Level
	  	 Time to Respond
	  	 Escalation Time
	  	 Comments

				
	1	  	2 hours	  	3 hours	  	
				
	2	  	3 hours	  	4 hours	  	
				
	3	  	Next business day	  	Next business day	  	
				
	4	  	Next business day	  	Next business day	  	

  

	1(c).	 Severity Definitions 

  

			
	 Severity Definitions

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

  

					
	Commercial in Confidence	  	Page 46	  	May 2004
	
	Network Management Outsourcing Agreement

	1.1.1	B. Reporting 

  

															
	 1.1.2
	  	 Report
	  		  		  		  		  		  	
								
	 1.1.3
	  	 Report Description
	  	 1.1.4
	  	 Frequency
	  	 1.1. 5
	  	 Delivery time
	  	 1.1.6
	  	 Distribution List

								
	 1.1.7
	  	 Start of Day Network Status Summary Report
	  	 1.1.8
	  	 Daily
	  	 1.1.9
	  	 08:00
	  	 1.1.10
	  	
								
	 1.1.11
	  	 Open / Closed Incident report
	  	 1.1.12
	  	 Daily
	  	 1.1.13
	  	 10:00
	  	 1.1.14
	  	
								
	 1.1.15
	  	 Network Utilisation Report
	  	 1.1.16
	  	 Weekly
	  	 1.1.17
	  	 17:00
 (Friday)
	  	 1.1.18
	  	
								
	 1.1.19
	  	 Management Summary report
	  	 1.1.20
	  	 Monthly
	  	 1.1.21
	  	 17:00
 (3rd Day of the month)
	  	 1.1.22
	  	
								
	 1.1.23
	  		  		  		  		  		  		  	

 Details 
 Start
of Day Network Status Summary Report 
 The report is to detail the status of all bank telecommunication circuits. For those circuits that are unavailable
or service is impacted details of actions taken is to be included in the report. 
  

					
	Commercial in Confidence	  	Page 47	  	May 2004
	
	Network Management Outsourcing Agreement

 Open / Closed Incident Report 
 A summary of all calls logged to the Network Helpdesk, status and action taken. 
 Network Utilisation Report 
 The report is to provide graphical details of network utilisation statistics for all facets of the network inclusive of; 
 Banking Traffic 
 Internet Traffic

 Line / Network availability statistics 
 Any anomalies are to be noted and appropriate commentary / recommendations made. 
 Monthly Management Report. 
 The report is detail in a summarised format Network and Operational performance for the month inclusive of; 
 Statistics of Incident Reports logged 
 Graphical presentation of Monthly Network Utilisation 
 Monthly Line / Network Availability Summary 
 SLA performance status 
 Staff
Report 
 Management commentary. 
  

					
	Commercial in Confidence	  	Page 48	  	May 2004
	
	Network Management Outsourcing Agreement

	2.	Managed Third Parties (MTP) 

 Datec will apply the appropriate
severity level and take action as required with managed third party vendors when the resolution requires the involvement of a managed third party. 
 In the
first instance Datec will liase with the managed third party vendor directly keeping records of the action for reporting purposes. 
 Should there be no
successful resolution to this approach within the time durations within this SLA, Datec will escalate the matter directly to the BSP Customer Business Manager (CBM). In any event the CBM will be aware of the request to the MTP due to the daily
reporting systems in place. 
 Once escalated to the BSP CBM, the BSP undertakes to take control of the liaison with the MTP to help Datec resolve the issue.

  

					
	Commercial in Confidence	  	Page 49	  	May 2004
	
	Network Management Outsourcing Agreement

 Schedule C 
 Pricing Schedule 
  

			
	 Annual Fees
	  	 
	 Annual Base Fee
	  	K3,524,322.00
		
	 Monthly Base Fee
	  	K293,693.50

  

													
	 SLA Rebate Table
	  	 	 	 	 	 	 	 	 	 	 	 
	 % Of SLA Achieved
	  	100%	 	95%	 	90%	 	85%	 	80%	 	75%
							
	 Monthly Rebate % applied
	  	0%	 	10%	 	20%	 	30%	 	40%	 	50%

  

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

  

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

  

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

  

													
	 Termination Fee Table
	  	 	 	 	 	 	 	 	 	 	 	 
							
	 Contract Term Completed
	  	0-Yrl	 	1-Yr2	 	2-Yr3	 	3-Yr4	 	4-Yr5	 	5-Yr6
							
	 % of Annual Base Fee Payable
	  	50%	 	40%	 	30%	 	20%	 	10%	 	0%

 Note: The Annual Base Fee will be adjusted in accordance with Section 9.1, “CPI Adjustments”,
of this agreement 
  

					
	Commercial in Confidence	  	Page 50	  	May 2004
	
	Network Management Outsourcing Agreement

 Schedule D 
 Change Control Form (For MAC’s) 
 Change Control Form 
 This form must be created as soon as the owner is aware of the change but at least two weeks prior to the implementation date. This is to notify all involved
parties of impending change and to help the scheduling of change into production. For urgent fixes the change process is followed but needs to be processed immediately. Full details may not be available at this point, however the minimum
requirements to be completed are: 
 Scheduled date and time of
change:            Date                    Time 
 Change Control Number:            CMS 
 Equipment affected by the change: 
 Equipment (Applies to one or more hardware, software changes or configuration changes to
one or more networks). 
  

					
	 Equipment Details
	  	 Domain
	  	 Location

		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	
		  		  	

  

					
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	Network Management Outsourcing Agreement

 1. Change to be carried out: 
  

			
	  

 2. Reason for Change 
  

			
	  

 3. Is there any impact on other areas? 
  

			
	  

 4. Has agreement been obtained from the business? If so please give details. 
  

			
	  

  

					
	Commercial in Confidence	  	Page 52	  	May 2004
	
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 5. Has Financial Approval been obtained for this change? If so please give details. 
  

			
	  

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

			
	  

 7. How will the change be carried out? 
  

			
	  

 8. Has any provision been made to back out the installation if necessary? Please give details. 

 

			
	  

  

					
	Commercial in Confidence	  	Page 53	  	May 2004
	
	Network Management Outsourcing Agreement

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

			
	  

 This change control must be reviewed and approved by at least one person from each of the
following areas: 
  

							
	 Area
	  	 Signatory
	  	Signature	  	Date
	The Business	  	Head of Relationship Banking	  		  	
				
		  	 Head of Technology
	  		  	
				
		  	 Others
	  		  	
				
	Datec	  	 Outsourcing
	  		  	
				
		  	 Delivery Manager
	  		  	
				
		  	 Office Automation
 Manager
	  		  	

  

					
	Commercial in Confidence	  	Page 54	  	May 2004
	
	Network Management Outsourcing Agreement

 Schedule E 
 REQUEST FOR SERVICE (RFS) 
 Service Request Form 
  

					
	Commercial in Confidence	  	Page 55	  	May 2004
	
	Network Management Outsourcing Agreement

					
	 BSP: Service Request Form
  
 Compulsory section or fields are marked with: F
	  	 F SR Number:
  
 (Completed by BSP)
	  	-RFS-

  

					
	 F Date
	  	  	  	 F Request Type (Cross)

	 F Region (Cross)
	  	  ̈ POM
  
  ̈ Other (Specify)
	  	  ̈ Project Request
  
  ̈ Support Request
  
  ̈ Other: Please Specify

 F 1.0 Request Details 
  

			
	Service Request Title	  	
		
	Project Name	  	BSP Project Code
		
	 Description
  
 Provide a brief outline of the project scope including high-level business requirements, technical impacts. Where appropriate, provide details of other areas impacted by this project including external
parties
	  	

  

					
	Commercial in Confidence	  	Page 56	  	May 2004
	
	Network Management Outsourcing Agreement

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

 2.0 Contract Reference 
 The terms and conditions will be applied as per the Network Management Outsourcing Agreement dated May 2004 between the Bank of South Pacific Limited and Datec PNG LTD. 
  

							
	F 3.0 Requestor Information
				
	Initiator of Request	  	Name	  	(	  	Mobile
				
		  	Position	  	e-mail	  	Fax
				
	 Prime Contact
  
 (if different from Requestor)
	  	Name	  	(	  	Mobile

  

					
	Commercial in Confidence	  	Page 57	  	May 2004
	
	Network Management Outsourcing Agreement

							
		  	Position	  	e-mail	  	Fax
				
	Requesting Business Area	  		  		  	
				
	Billing Cost Centre	  		  		  	
				
	Project Manager1	  	Name	  	(	  	Mobile

  

							
	 F 4.0 Key Dates (attach Project Plan or relevant documents as appropriate)

	BSP Phase(s)	  		  	Completion Date(s)	  	/     /
/     /
	Datec Phases(s)	  		  	Completion Date(s)	  	/     /
/     /
			
	 Priority:
 (Cross those
applicable)
	  	 ̈ Regulatory	  	 ̈ Normal

  

					
	Commercial in Confidence	  	Page 58	  	May 2004
	
	Network Management Outsourcing Agreement

					
		  	 ̈ Compliance	  	 ̈ Fastpath
			
	Implementation Date(s):	  	User Acceptance Testing	  	
			
		  	Production	  	
			
		  	Other (specify)	  	/    /

  

			
	 5.0 BSP/Datec Purchase Order
Details

	F Purchase Order No.2	  	F BSP/Datec
		
	 Is this Request In-Scope or Out-of-Scope of the Services Agreement
  
 Provide details of components if “Out of Scope”.
	  	

  

					
	Commercial in Confidence	  	Page 59	  	May 2004
	
	Network Management Outsourcing Agreement

			
	 F 6.0 BSP Managerial Approval

	Authorised Approver	  	Name:
		
		  	Title:
		
		  	Date:

  

					
	 7.0 BSP Executive
Approval

	 Approval
	  	  	  	 Approval

	Approved / Not Approved for release to Datec PNG LTD on behalf of the Bank of South Pacific Limited by:	  		  	Approved / Not Approved for release to Datec PNG LTD on behalf of the Bank of South Pacific Limited by:
			
	  	  		  	  
			
	For and on behalf of the Bank South Pacific Limited	  		  	For and on behalf of the Bank South Pacific Limited
			
	/    /	  		  	/    /
			
	Explanation for Non -approval (if appropriate)	  		  	

  

					
	Commercial in Confidence	  	Page 60	  	May 2004
	
	Network Management Outsourcing AgreementFiscal Year 2008 Executive Incentive Compensation Program of Exar Corporation

 Exhibit 10.1 
 PLAN DOCUMENT 
 Fiscal Year 2008 Senior Executive Incentive 
 Compensation Program 
  

	1.0	Summary 

 The Exar Corporation (the
“Company”) Fiscal Year 2008 Senior Executive Incentive Compensation Program (the “Plan”) is a variable cash incentive program designed to motivate participants to achieve the Company’s financial goals and operational and
strategic goals and to reward them for performance against those goals. 
  

	2.0	Eligibility 

 Participants are approved solely at
the discretion of the Compensation Committee of the Board of Directors (the “Board”) when acting on behalf of the full Board. All executive officers are eligible to be considered for participation. The President/CEO may recommend others
with the approval of the Compensation Committee. 
  

	3.0	Administration 

 The Compensation Committee is
ultimately responsible for administering the Plan, and has designated the Management Committee, consisting of the President/CEO, the Senior Vice President/CFO, and the Director of Human Resources to administer the Plan. 
  

	4.0	Award Determination 

 The Management Committee will
recommend target incentives for each participant other than the target award for the President/CEO. Payments will be calculated using a formula that includes (a) the participant’s Fiscal Year Base Salary (the “Salary”),
(b) the participant’s Target Incentive (the “Target”), (c) the participant’s Maximum Target (the “Max Target”), (d) a “Company Modifier”, and (e) and an “Individual Modifier”. The
Modifiers may be greater than 100% with higher than target levels of achievement. The Compensation Committee will assign and approve the Target Incentive and Max Award for the President/CEO and determine the award payout. The President/CEO will
recommend to the Compensation Committee Target Awards and Max Awards for other senior executives. 
  

	5.0	Definitions 

  

	 	5.1	The Salary 

 This is the annual base salary, paid in
the Plan’s fiscal year, exclusive of any bonuses, incentive payments or awards, auto allowance, and such extras or perquisites over base pay. 
  

 1 

	 	5.2	The Target 

 The Target Incentive is expressed as a
percentage of Salary. Each participant will have a Target Incentive, as approved by the Compensation Committee. 
  

	 	5.3	The Max Target 

 The Max Target Award is expressed
as a percentage of Salary. No participant may receive an award greater than the Max Target. 
  

	 	5.4	The Company Modifier (70%) 

 The Compensation
Committee approves a Company Modifier for all participants by assessing the Company’s financial performance against pre-established fiscal year financial goals for revenue and operating income and may include other financial goals as deemed
appropriate. An “on target” Company performance yields a 100% modifier. 
  

	 	5.5	The Individual Modifier (30%) 

  

	 	5.5.1	President/CEO 

 The Compensation Committee will
evaluate the performance of the President/CEO at the conclusion of the fiscal year based upon the achievement of pre-established Company financial goals and individual objectives. The Compensation Committee will assign an Individual Modifier to the
formula for calculation of the final award payout. An “on target” performance yields a 100% modifier. 
  

	 	5.5.2	Other Participants 

 The President/CEO will assess
the performance of other participants at the conclusion of the fiscal year based upon each participant’s achievement of pre-established objectives. The President/CEO will recommend an Individual Modifier to the formula for calculation of the
final award payout. An “on target” performance yields a 100% modifier. The President/CEO will forward these recommendations to the Compensation Committee for review and approval. 
  

	6.0	Funding of the Incentive Plan for Individual Payouts 

  

	 	6.1	General 

 Funding is derived from corporate
financial results and individual objectives. Revenue and operating profit combined are weighted 70% of the total incentive award; the remaining 30% is based upon individual objectives. Payout of the 30% is not reliant on achievement of the financial
results for funding purposes. 
  

	 	6.2	Calculation for Individual Payout 

 The individual
payout is determined by factoring the participant’s actual Fiscal Year 2008 base salary, individual target award percentage, actual corporate revenue and operating income results, and individual objectives. 
  

 2 

	7.0	Other Plan Provisions 

 7.1 It is recognized
that certain unforeseen events or inequities could develop in the Plan as established. Any merger and/or acquisition may require modification of thresholds and targets. Consideration will be given to unusual circumstances. The Compensation Committee
may give such consideration and the Compensation Committee’s decision will be final. 
 7.2 The portion of the Plan attributable
to Company financial achievement will not be funded unless there is funding and payout for the Fiscal Year 2008 Key Employee Incentive Program. 
 7.3 Payments will be made in accordance with the final annual statements as audited by the Company’s independent Certified Public Accountants. Amounts earned should be paid as soon as administratively possible after the
Company’s filing of Form 10-K. 
 7.4 The Plan is to be in force for Fiscal Year 2008, and only those who are in the employ of the
company and still a member of the eligible executive group through the date of payout will qualify for payments. 
  

			
	Attachments:	 	1.    Fiscal Year 2008 Senior Executive Incentive Funding Matrix
		
		 	2.    Example of Individual Calculation/Formula for Payment

  

 3 

 

 
  

 Attachment 2 
  

							
	Example:	 		  		  	
				
	 Base Salary
	 	:	  	$200K	  	
				
	 Target Award
	 	:	  	40%	  	($80K)
				
	 Max Award
	 	:	  	80%	  	($160K)

  

									
	 	  	 Components:
	  	Results	 	 	Modifier %	 
	 a.
	  	% of Planned Revenue Achievement	  	103	%	 		
				
	 b.
	  	% of Planned Operating Profit (before stock-based compensation) Achievement	  	117	%	 		
				
	 c.
	  	Company Modifier based on a & b (See Matrix Attachment 1) – 70% of Total Short-Term Incentive	  			 	33	%
				
	 d.
	  	Individual Modifier (Based on FY’08 Individual Objectives) – 30% of Total Short-Term Incentive	  	90	%	 	27	%
				
	 e.
	  	Combined Modifier	  			 	60	%

  

													
	Calculation:	 		  		 		  		 		  	
							
	 $200K
	 	x	  	40%	 	x	  	60%	 	=	  	$48,000
	 ñ
	 		  	ñ	 		  	ñ	 		  	ñ
	 Base
	 		  	Target	 		  	Combined	 		  	Payout
	 Salary
	 		  	Award	 		  	Modifier	 		  	

  

 5

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