Document:

Contract between Sagric International Pty. Ltd and Datec (PNG) Ltd

 Exhibit 10.20 
  
 

 
  
 CONTRACT 
  
 BETWEEN 
  
 SAGRIC INTERNATIONAL PTY. LTD (ACN 007 889 081) 
  
 AND 
  
 Datec (PNG) Ltd 
  
 Company Registration No 1-14813 
  
 IN RELATION TO 
  
 PNG
EDUCATION CAPACITY BUILDING PROGRAM 
  
 INFORMATION
TECHNOLOGY MANAGEMENT AND SUPPORT 
 SERVICES ACTIVITY 
  
 APRIL 2005 

  
 CONTENTS 
  

					
	 CLAUSE

	  	PAGE

			
	 1.
	 	DEFINITIONS	  	5
			
	 2.
	 	TERM OF THE CONTRACT	  	7
			
	 3.
	 	CONTRACTOR’S OBLIGATIONS	  	8
			
	 4.
	 	SAGRIC’S OBLIGATIONS	  	9
			
	 5.
	 	OTHER CONTRACTORS	  	10
			
	 6.
	 	GST & VAT	  	11
			
	 7.
	 	RELATIONSHIP WITH PARTNER GOVERNMENT	  	12
			
	 8.
	 	PERSONNEL	  	13
			
	 9.
	 	NEGATION OF EMPLOYMENT, PARTNERSHIP AND AGENCY	  	14
			
	 10.
	 	ACTIVITY CO-ORDINATION	  	14
			
	 11.
	 	PROCUREMENT	  	14
			
	 12.
	 	CONTROL OF PROGRAM SUPPLIES	  	15
			
	 13.
	 	ACCEPTANCE BY SAGRIC	  	16
			
	 14.
	 	CONFLICT OF INTEREST	  	17
			
	 15.
	 	OWNERSHIP OF CONTRACT MATERIAL	  	17
			
	 16.
	 	SAGRIC MATERIAL	  	18
			
	 17.
	 	DISCLOSURE OF INFORMATION	  	18
			
	 18.
	 	CONFIDENTIALITY	  	19
			
	 19.
	 	ANNUAL PLANS (IF APPLICABLE)	  	19
			
	 20.
	 	SAGRIC PAYMENTS POLICY	  	20
			
	 21.
	 	SAGRIC’S RIGHT TO RECOVER OVERPAYMENTS	  	20
			
	 22.
	 	CONTRACTOR DEFAULT AND INSOLVENCY	  	21
			
	 23.
	 	SUSPENSION, TERMINATION AND REDUCTION	  	22
			
	 24.
	 	MISTAKES IN INFORMATION	  	24
			
	 25.
	 	FORCE MAJEURE	  	24
			
	 26.
	 	INSURANCE AND INDEMNITY	  	25

					
	 27.
	 	PERFORMANCE GUARANTEE (NOT APPLICABLE)	  	25
			
	 28.
	 	WORKER’S COMPENSATION	  	26
			
	 29.
	 	NOTICES	  	27
			
	 30.
	 	SUB-CONTRACTORS	  	28
			
	 31.
	 	WAIVER	  	28
			
	 32.
	 	EQUAL OPPORTUNITY FOR WOMEN IN THE WORKPLACE	  	28
			
	 33.
	 	DISPUTE RESOLUTION AND ARBITRATION	  	29
			
	 34.
	 	GOVERNING LAW	  	30
			
	 35.
	 	FINANCIAL RECORDS	  	30
			
	 36.
	 	REPORTING REQUIREMENTS	  	31
			
	 37.
	 	ANTI-CORRUPTION	  	31
			
	 38.
	 	ENTIRE CONTRACT AND VARIATION	  	31
		
	SCHEDULE 1: SCOPE OF SERVICES	  	33
		
	SCHEDULE 2: BASIS OF PAYMENT	  	35
		
	SCHEDULE 3: ASSETS REGISTER FORMAT (if applicable)	  	39
		
	SCHEDULE 4: PERFORMANCE GUARANTEE	  	40
		
	SCHEDULE 5: CONTRACTOR ASSET PRICING SCHEDULE	  	45
		
	SCHEDULE 6: CONTRACTOR ONGOING ASSET MAINTENANCE COSTS	  	47
		
	SCHEDULE 7: CONTRACTOR SERVICE AND PERFORMANCE REQUIREMENTS	  	49
		
	SCHEDULE 8: CONTRACTOR DEPLOYMENT AND MIGRATION SERVICES	  	67

  
 

 
  
 THIS CONTRACT is made on the 22nd day of April 2005 
  
 BETWEEN 
  
 SAGRIC INTERNATIONAL PTY LTD (ACN 007 889 081) having its head office at Adelaide in the State of South Australia (in this Contract called “SAGRIC”) of the one part 
  
 AND 
  
 Datec (PNG) Ltd Company Registration No 1-14813 having its head office at Port Moresby in PN G (in this Contract
called “the Contractor”) of the other part. 
  
 WHEREAS

  

	 	A.	SAGRIC carries on the business of a Project Management Consultant. 

  

	 	B.	SAGRIC has agreed to provide services to the Commonwealth of Australia, acting through the Australian Agency for International Development of the Department of Foreign Affairs and
Trade, in connection with the PNG Education Capacity Building Program (“the Program”). 

  

	 	C.	SAGRIC is desirous of obtaining certain services in connection with the Project, specifically the Information Technology Management and Support Services Activity (‘the
Activity’), to the extent more particularly described in this Contract. 

  

	 	D.	The Contractor, for the consideration specified in this Contract, has agreed to provide such services subject to the following terms and conditions. 

  

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 NOW IT IS AGREED as follows: 
  

	1.	DEFINITIONS 

  

	 	1.1	In this Contract: 

  

	 	(a)	“AusGUIDE” means the Australian Agency for International Development’s Guide for AusAID staff, contractors and others involved in aid delivery and which is
available through the AusAID website www.ausaid.gov.au and any amendments thereto; 

  

	 	(b)	“AusAID” means the Australian Agency for International Development of the Department of Foreign Affairs and Trade; 

  

	 	(c)	“Commonwealth” means the Commonwealth of Australia acting through the Australian Agency for International Development (AusAID) of the Department of Foreign Affairs
and Trade; 

  

	 	(d)	“Consultants” means all persons employed or otherwise engaged by SAGRIC (whether on a permanent or temporary basis) for the purposes of the performance by SAGRIC of
the Head Contract, including: 

  

	 	(i)	all SAGRIC’s sub-Contractors, other than the Contractor; 

  

	 	(ii)	all persons employed or otherwise engaged by any sub-Contractor, other than by the Contractor; 

  

	 	for	the purpose of performance by SAGRIC of any part of the Head Contract. 

  

	 	(e)	“Contract” means this Contract and includes the following Schedules and any annexes thereto: 

  

	 	(i)	Schedule 1: Scope of Services 

  

	 	(ii)	Schedule 2: Basis of Payment 

  

	 	(iii)	Schedule 3: Assets Register Format (if applicable) 

  

	 	(iv)	Schedule 4: Performance Guarantee 

  

	 	(v)	Schedule 5: Contractor Asset Pricing 

  

	 	(vi)	Schedule 6: Contractor Ongoing Asset Maintenance Costs 

  

	 	(vii)	Schedule 7: Contractor Service and Performance Requirements 

  

	 	(viii)	Schedule 8: Contractor Development and Migration Services together with any document incorporated by express reference; 

  

 Page 5 

	 	(f)	“Contract Material” means all material brought or required to be brought into existence as part of, or for the purpose of, performing the Services including but not
limited to documents, equipment, information and data stored by any means; 

  

	 	(g)	“Contractor” means the partner organisation that is the legal entity entering into this contract. 

  

	 	(h)	“GST” means goods and services tax or any similar tax imposed by reason of a supply of goods or services under this Contract; 

  

	 	(i)	“Head Contract” means the PNG Education Capacity Building Project: Contract, its general conditions and annexures entered into in February 2004 between the
Commonwealth of Australia and SAGRIC International Pty Ltd ABN 63 007 889 081; 

  

	 	(j)	“Intellectual Property” includes all copyright and neighbouring rights, all rights in relation to inventions (including patent rights), plant varieties, registered
and unregistered trademarks (including service marks), registered designs, confidential information (including trade secrets and know how) and circuit layouts, and all other rights resulting from intellectual activity in the industrial, scientific,
literary or artistic fields; 

  

	 	(k)	“Parties” means SAGRIC and the Contractor; 

  

	 	(1)	“Performance Guarantee” means the Performance Guarantee defined in sub – clause 27.2 (a). 

  

	 	(m)	“Person” includes a partnership and a body corporate or unincorporated; 

  

	 	(n)	“Personnel” means all persons employed or otherwise engaged by the Contractor (whether on a permanent or temporary basis) for the purposes of the performance by the
Contractor of the Services, including: 

  

	 	(i)	all of the Contractor’s sub-Contractors; 

  

	 	(ii)	all persons employed or otherwise engaged by the Contractor, 

  
 for the purpose of performance by the Contractor of any part of the Services; 
  

	 	(o)	“Program” means the PNG Education Capacity Building Program details of which are described in Head Contract; 

  

	 	(p)	“Partner Country” means Papua New Guinea 

  

	 	(q)	“Partner Government” means the Government of Papua New Guinea; 

  

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	 	(r)	“Representative” or “Authorised Representative” means the Contractor’s Activity Director in sub-clause 10.1; 

 

	 	(s)	“SAGRIC Material” means any material provided by SAGRIC to the Contractor for the purposes of this Contract including, but not limited to, documents, equipment,
information and data stored by any means; 

  

	 	(t)	“SAGRIC’s Representative” or “SAGRIC’s Authorised Representative” means the person with authority to conduct contract negotiations on
SAGRIC’s behalf or represent SAGRIC with respect to this Contract, as identified in SAGRIC’s Request for Tender or by notice to the Contractor pursuant to clause 29; 

  

	 	(u)	“Services” means the services described in Schedule 1 which are required to be performed for the Activity; 

  

	 	(v)	“Activity” means the Information Technology Management and Support Services Activity; details of which are described by the express and implied requirements in
Schedule 1; 

  

	 	(w)	“Activity Manager” means the person defined in sub-clause 10.1; 

  

	 	(x)	“Tender” means the Contractor’s bidding proposal as submitted to SAGRIC in response to SAGRIC’s Request for Tender dated November 2004 for the Information
Technology Management and Support Services; and 

  

	 	(y)	“Term of the Contract” means the period specified in clause 2. 

  

	 	1.2	Words in the singular include the plural and words in the plural include the singular. 

  

	 	1.3	Words importing a gender include any other gender. 

  

	 	1.4	Clause headings in this Contract are for convenient reference only and have no effect in limiting or extending the language of the provisions to which they refer.

  

	2.	TERM OF THE CONTRACT 

  

	 	2.1	The Contract shall commence on or about 1 May 2005 and the Contractor shall complete the instalment of assets by 31 August and the provision of services by
31 December 2005. 

  

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	3.	CONTRACTOR’S OBLIGATIONS 

  

	 	3.1	The Contractor shall perform the Services in the manner prescribed in this Contract and in accordance with the standards, requirements and practices adopted by the Contractor’s
profession or industry in Australia. 

  

	 	3.2	The Contractor shall perform the Services within the Term of the Contract. 

  

	 	3.3	The Contractor shall act at all times so as to protect the interests of SAGRIC and the Commonwealth; which may be directly or indirectly affected by the Contractor’s
performance. 

  

	 	3.4	The Contractor shall submit claims for payment in the manner specified in Schedule 2. 

  

	 	3.5	The Contractor shall comply at all times with SAGRIC’s reasonable requirements in relation to its evaluation and review of the Activity, including but not limited to the
provision of financial, technological, progress reports and other information. 

  

	 	3.6	The Contractor shall strictly comply with SAGRIC’s reporting requirements as specified in Schedule 1. 

  

	 	3.7	The Contractor warrants that it has and will be deemed to have: 

  

	 	a)	done everything possible to inform itself fully as to the laws and local conditions which may affect its performance of the Contract and obtained all necessary information as to
risks, contingencies and other circumstances which may affect the timing, scope and cost of the Services; and 

  

	 	b)	informed itself completely as to the amount and nature of the resources, expertise, materials, labour and everything else necessary for the implementation and management of the
Activity and the performance of the Contractor’s obligations under the Contract. 

  

	 	3.8	Failure by the Contractor to do all or any of the things it is deemed to have done under this clause will not relieve the Contractor of its liability to perform and complete the
Contract in accordance with its terms and conditions. 

  

	 	3.9	Without limiting any other provision of the Contract the Contractor: 

  

	 	a)	acknowledges the existence of Partner Country risk in performing its obligations under the Contract; 

  

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	 	b)	for this purpose must proactively manage the Partner Country risk and take all steps consistent with the fulfilment of its obligations under the Contract to minimise the occurrence
of any such problems occurring; and 

  

	 	c)	must immediately notify SAGRIC’s Representative if any such problems occur, whether or not they constitute a Force Majeure event, and thereafter take all necessary steps
to minimise or overcome any Partner Country risk. 

  

	 	3.10 	Whenever the Contractor, with the approval of SAGRIC under clause 30, engages a sub-Contractor to perform any part of the Services, the Contractor shall ensure that the contract
between the Contractor and the sub-Contractor contains such provisions as will enable the Contractor to fully and effectively perform the Contractor’s obligations under this Contract. 

  

	 	3.11 	The Contractor shall notify SAGRIC in writing before making or agreeing to make any significant material change in the legal or organisational status of the Contractor, or the
financial position of the Contractor, which might affect the ability of the Contractor to comply with its obligations under this Contract. 

  

	 	3.12 	The Contractor acknowledges and confirms that, not withstanding any other provision of the Contract: 

  

	 	(a)	It is not the function or responsibility of SAGRIC and/or the Commonwealth or any person acting on behalf of SAGRIC and/or the Commonwealth to approve the Contractor’s security
plans; 

  

	 	(b)	SAGRIC and/or the Commonwealth does not accept responsibility, and will not be liable at common law (including actions for negligence) for the safety or security of the Contractor
and Personnel; and 

  

	 	(c)	The Contractor has not entered the Contract on the basis of any representation, statement or assurance by SAGRIC and/or the Commonwealth, in respect of the safety or security of the
Contractor and Personnel, in any overseas location. 

  

	4.	SAGRIC’S OBLIGATIONS 

  

	 	4.1	SAGRIC shall pay to the Contractor the fees specified in Schedule 2 upon the conditions and in the manner provided for in this Contract. 

  

	 	4.2	Not withstanding the provisions of clause 22 and without derogating from any other right it may have, SAGRIC may in its absolute discretion defer payment of any fees until the
Contractor has completed to SAGRIC’s reasonable satisfaction that part of the Services to which those fees relate and has met all its obligations outstanding under the Contract as at the date the payment is due. 

  

 Page 9 

	 	4.3	Not withstanding the provisions of clause 22 and without derogating from any other right it may have, SAGRIC may in its absolute discretion refuse payment of any fees due to the
Contractor if the Contractor has failed to meet its obligations under the contract. 

  

	 	4.4	Not withstanding the provisions of clause 22 and without derogating from any other right it may have, SAGRIC may in its absolute discretion demand full reimbursement for services
provided by the Contractor if AusAID rejects an invoice for those services. The Contractor will not be due for any payment of any fees until the Contractor has completed to SAGRIC’s and AusAID’s reasonable satisfaction each milestone for
the Activity and a representative from the AAG has signed the Activity Completion form. 

  

	 	4.5	The total consideration payable to the Contractor shall not exceed the absolute financial limitation specified in Schedule 2. SAGRIC accepts no liability in respect of any
additional claims for payment made or liabilities incurred by the Contractor whether based upon legal or equitable principles unless the provisions of sub-clause 38.2 have been strictly observed. 

  

	5.	OTHER CONTRACTORS 

  

	 	5.1	SAGRIC will be entitled to arrange for other Consultants/Contractors to carry out work on the Project (the execution of which is not included in the Contract) concurrently with the
performance by the Contractor of the Services. 

  

	 	5.2	The Contractor: 

  

	 	a)	must permit the performance of work and services by other Consultants; 

  

	 	b)	must fully cooperate with the other Consultants, AusAID and with SAGRIC; 

  

	 	c)	must carefully coordinate its own work with that being carried out or to be carried out by the other Consultants, AusAID and/or by SAGRIC; and 

  

	 	d)	must take such steps as are reasonably necessary or required for the expeditious completion of the Activity and/or Project or as directed by SAGRIC’s Representative to minimise
disruption or interference to SAGRIC, other Consultants and other Personnel. 

  

 Page 10 

	6.	GST & VAT 

  

	 	6.1	Except as provided by this clause, all taxes, duties and charges imposed or levied in Australia or overseas in connection with the performance of this Contract shall be borne by the
Contractor. 

  

					
	 6.2 
	  	(a)  	  	The amount shown against each item in schedule 2 is the ‘value’ of each of the ‘periodic supplies’ and services to be made under this contract.

  

	 	(b)	The amount payable under the contract for each supply listed in schedule 2 is the value of that supply plus any GST and/or VAT payable by the Contractor under
the GST Act. 

  

	 	(c)	The amount of GST and/or VAT payable by the Contractor and included in the amount payable by SAGRIC under the contract shall be shown as a separate item on the invoice, together
with the method of calculation. 

  

	 	(d)	Notwithstanding subclause (c) above, for these supplies made on or after 1 July 2000, the operation of subclause (b) is subject to the Contractor providing a valid
‘tax invoice’ to SAGRIC. 

  

	 	(e)	If the Australian Taxation Office (ATO) subsequently assesses that the GST paid by the Contractor on any supply under the contract was less than the GST payable under the Act,
SAGRIC shall, upon receipt of a request for the additional GST and receipt of a copy of the ATO assessment, pay to the Contractor the additional GST. 

  

	 	(f)	If the ATO subsequently assesses that the GST paid by the Contractor on any supply under the contract was more than the GST payable under the Act, the Contractor shall, upon receipt
of the ATO assessment repay to SAGRIC the excess GST and provide the SAGRIC a copy of the ATO assessment. 

  

	 	(g)	SAGRIC shall not pay to the Contractor any amount referable to GST, except as provided in this clause. 

  

	 	(h)	The Program is registered with the Internal Revenue Commission of PNG as an approved aid project of a prescribed foreign aid provider and, therefore, zero-rated for GST/VAT. The
Project Registration Number is GS 10821. The Contractor must pay GST/VAT on goods and services procured for the Project in PNG and when seeking refund for tax paid must provide SAGRIC with Tax Invoices that must contain; 

  

	 	•	 	the words “TAX INVOICE” 

  

	 	•	 	the name and GST/VAT registration number of the supplier 

  

	 	•	 	the date the invoice was issued 

  

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	 	•	 	the quantity or volume and description of the goods or services supplied 

  

	 	•	 	the amount of GST/VAT charged listed as a separate amount or a single amount including GST/VAT and the words “This invoice includes VAT charged at 10%”

  

	 	•	 	if the payment is in excess of K200 then the name and address of the recipient must also be included on the invoice. 

  
 For amounts less than K50 it is not necessary to have a receipt from the
supplier. The receipt must include the supplier’s name and GST/VAT registration number to enable a GST/VAT refund claim. 
  
 These documents must be included in all acquittals. 
  

	7.	RELATIONSHIP WITH PARTNER GOVERNMENT 

  

	 	7.1	SAGRIC will use its best endeavours to ensure that the Commonwealth, through the Australian Diplomatic Mission in, or responsible for, the Partner Country provides, where necessary,
representation with appropriate officials of the Partner Government to assist the Contractor in securing any cooperation required for the successful performance of the Services and the completion of the Activity. Except for SAGRIC’s best
endeavours to ensure the Commonwealth’s assistance under this clause, the Contractor shall be fully responsible for obtaining cooperation or consents required for the purposes of the Activity. 

  

	 	7.2	The Contractor shall direct all Personnel to comply with instructions from the Australian Diplomatic Mission in, or responsible for, the Partner Country regarding security and
welfare matters. 

  

	 	7.3	The Contractor shall respect and abide by all the laws and regulations in force in the Partner Country. The Contractor shall use its best efforts to ensure in its performance of the
Services that all Personnel and dependants while in the Partner Country respect and abide by all the laws and regulations in force in the Partner Country. 

  

	 	7.4	The Contractor shall not become involved in the political affairs of the Partner Country. The Contractor shall use its best efforts to ensure that all Personnel and dependants do
not become involved in the political affairs of the Partner Country. If SAGRIC is of the opinion that any such person has become politically involved, then it may, at its absolute discretion, require the Contractor to repatriate that person. The
replacement of any Personnel so repatriated shall be by Personnel of equal competence and subject to the prior approval of SAGRIC. The total cost of any such replacement including repatriation costs shall be borne by the Contractor.

  

	 	7.5	Sub-clause 7.4 shall not apply in respect of Personnel and dependants who are citizens of the Partner Country. 

  

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	 	7.6	It is agreed that all Personnel will perform management, administrative or advisory roles in the Partner Country and the Contractor shall use its best efforts to ensure Personnel
establish and maintain harmonious and effective working relationships with staff employed by the Partner Government on the Program. 

  

	8.	PERSONNEL 

  

	 	8.1	The Contractor shall provide sufficient numbers of competent Personnel as submitted in its Tender and as specified in Schedule 1 on which this Contract was awarded or the Personnel
specified in Schedule 1 to perform the Services in the Partner Country and Australia. 

  

	 	8.2	Before appointing any Personnel to the Activity, the Contractor shall seek the approval of SAGRIC by providing: 

  

	 	(a)	the full names and nationalities of proposed Personnel; 

  

	 	(b)	a statement showing the position to be held, the job specification and duration of the proposed appointment; and 

  

	 	(c)	a copy of the proposed person’s curriculum vitae showing relevant experience and formal qualifications including dates of award. 

  

	 	8.3	Where approved Personnel are unable to undertake work in respect of the Services, the Contractor shall notify SAGRIC immediately. The Contractor shall, if so requested by SAGRIC,
provide replacement Personnel acceptable to SAGRIC at no additional charge and at the earliest opportunity. 

  

	 	8.4	SAGRIC may, at its absolute discretion, give notice requiring the Contractor to remove Personnel (including approved Personnel) from work in respect of the Services. The Contractor
shall promptly arrange for the removal of such Personnel from work in respect of the Services and their replacement with Personnel acceptable to SAGRIC. 

  

	 	8.5	If the Contractor is unable to provide acceptable replacement Personnel SAGRIC may terminate this Contract in accordance with the provisions of clause 22. 

 

	 	8.6	The Contractor shall ensure to the best of its ability that no Personnel, except for Personnel who are citizens of the Partner Country, shall engage directly or indirectly, in any
business or professional activity in the Partner Country; which is not directly related to the Project without the prior written agreement of SAGRIC. 

  

	 	8.7	The Contractor shall not engage a SAGRIC or Commonwealth employee in any capacity in connection with the Services, without the prior written approval of SAGRIC and the Commonwealth.

  

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	 	8.8	The Contractor shall ensure that media advertisements placed by the Contractor for Personnel to fill an Activity position acknowledge that the Project is funded by the Australian
Government through AusAID as part of Australia’s Overseas Development Assistance Program. 

  

	9.	NEGATION OF EMPLOYMENT, PARTNERSHIP AND AGENCY 

  

	 	9.1	The Contractor shall not represent itself and shall ensure that all Personnel do not represent themselves, as being employees, partners or agents of SAGRIC or the Commonwealth.

  

	 	9.2	The Contractor and Personnel shall not by virtue of this Contract be or for any purposes be deemed to be an employee, partner or agent of SAGRIC or the Commonwealth.

  

	10.	ACTIVITY CO-ORDINATION 

  

	 	10.1 	The Contractor shall designate its Activity Manager to be its senior representative responsible for the overall management and direction of its performance of the Services.

  

	11.	PROCUREMENT 

  

	 	11.1 	The Contractor shall in its procurement of goods and services comply with the Commonwealth’s Procurement Guidelines and in accordance with the Commonwealth’s Key
Purchasing Principles shall ensure that: 

  

	 	(a)	the goods to be procured are of a satisfactory quality; 

  

	 	(b)	the goods will be delivered or completed in good order and condition and in accordance with the Activity timetable; 

  

	 	(c)	the price paid for items procured represent value for money; 

  

	 	(d)	there is open and effective competition in the purchasing process to the extent practicable; 

  

	 	(e)	a professional approach be reflected in the purchasing process including ethical behaviour and fair dealing; 

  

	 	(f)	specifications are in writing and do not exclude Australian and New Zealand products; which are suitable or reasonably adaptable to the requirement on hand;

  

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	 	(g)	procurement is planned including, but not limited to, early consultation with industry; and 

  

	 	(h)	if applicable, due consideration is given in procurement to maximise participation by Australian and New Zealand suppliers where practicable in accordance with Commonwealth
Procurement Guidelines Number 12. (The Contractor may obtain information about manufacturers from the Industrial Supplies Offices in each capital city). 

  

	 	11.2 	The Contractor shall undertake all procurement in its own name, not in SAGRIC’s or the Commonwealth’s name or as SAGRIC’s or the Commonwealth’s agent.

  

	 	11.3 	The Contractor should be aware of and conform with, Australian government purchasing policies in regard to any country, as the Commonwealth may determine from time to time.

  

	 	11.4 	The Contractor shall maintain procurement records that shall record its efforts to implement these requirements and its procurement records shall be deemed to be financial records.

  

	12.	CONTROL OF PROGRAM SUPPLIES 

  

	 	12.1 	The Contractor shall be responsible for the reasonable care of all assets procured for the Activity. 

  

	 	12.2 	The Contractor shall carry all risk for Activity assets until such time as they, with SAGRIC’s concurrence, are handed over to the Partner Government. 

 

	 	12.3 	The Contractor shall ensure that effective internal controls exist in relation to assets (including consumable items) prior to their issue for use. 

  

	 	12.4 	The Contractor shall maintain a record of all material assets procured under the Contract for delivery directly to the Partner Government. In addition documentation acknowledging
receipt by, or confirming delivery to, the Partner Government should be obtained in respect of all such assets. 

  

	 	12.5 	The Contractor shall maintain a Register of Activity Assets (RAA) under its administrative control within the Partner Government, as well as a separate RAA for in Australia Activity
Assets. The RAA shall record non-consumable items funded or supplied to the Activity and having a value of $1,000 or more. In addition, non-consumable items of a portable and attractive nature with a value of less than $1,000 are also to be
recorded. The following is an indicative, but not exhaustive list of items that may be included: 

  

	 	(a)	scientific equipment; 

  

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	 	(b)	computer hardware and software; 

  

	 	(c)	photographic equipment; 

  

	 	(d)	office furniture and equipment; 

  

	 	(e)	medical equipment; 

  

	 	(f)	engineering and survey equipment; 

  

	 	(g)	motor vehicles. 

  

	 	12.6 	The RAA shall show as a minimum date of receipt of the asset at the Activity site, the cost, the purchase/payment document date and reference/serial number, a description and
identification number, and the location of the asset (subject to discussion and agreement with the SAGRIC representative). Schedule 3 to this Contract details the RAA format required by SAGRIC. Subsequent disposal action as agreed to in writing by
SAGRIC such as replacement, write-off, or transfer to the Partner Government counterpart agency shall also be recorded. The RAA and other relevant documents such as import papers and manufacturers’ warranties relating to the assets shall be
available for audit as required by SAGRIC. 

  

	 	12.7 	Payment for the purchase of assets required to be placed on the RAA pursuant to clause 12.5 shall not be approved by the Contractor unless the payment documentation carries the
corresponding RAA reference/asset number. 

  

	 	12.8 	The Activity Manager designated by the Contractor shall ensure that the RAA is maintained in an accurate and current state, and shall exercise administrative control on behalf of
SAGRIC over the assets recorded in the RAA. The Activity Manager shall be responsible for the safekeeping and maintenance of the assets in the RAA until directed by SAGRIC to transfer them to the Partner Government or otherwise dispose of them.

  

	13.	ACCEPTANCE BY SAGRIC 

  

	 	13.1 	SAGRIC reserves the right, at any time, to alter, qualify or reject any Contract Material including any report, statement, design, conclusion, or recommendation made by the
Contractor under this Contract, which is not to SAGRIC’s satisfaction, but SAGRIC shall not exercise its discretion unreasonably. The Contractor shall promptly correct rejected Contract Material at the Contractor’s expense.

  

	 	13.2 	SAGRIC will use the ECBP Quality Management Plan and associated documents as one of the main performance monitoring tools in its assessment of the suitability of milestone
performance by the contractor. SAGRIC’s acceptance or rejection of Contract Material tendered by the Contractor and the reasons therefore will be communicated to the Contractor in writing. 

  

 Page 16 

	 	13.3 	SAGRIC’s obligation to make the payments contained in Schedule 2 shall be contingent upon the Contractor’s receipt of SAGRIC’s written notification of its acceptance
of the Contract Material. 

  

	14.	CONFLICT OF INTEREST 

  

	 	14.1 	The Contractor warrants that, at the date of signing this Contract, the Contractor does not: 

  

	 	(a)	hold any office; 

  

	 	(b)	possess any property; 

  

	 	(c)	have any obligation by virtue of any Contract or any venture in association with another Person; or 

  

	 	(d)	have any obligation to observe any standards in the course of exercising a profession; 

  
 whereby, directly or indirectly, duties or interests are or might be created which conflict or will conflict with its duties
or interests under this Contract. 
  

	 	14.2 	If during the term of this Contract, a conflict or risk of a conflict arises of the kind referred to in this clause, the Contractor undertakes to notify SAGRIC immediately in
writing of that conflict or risk. 

  

	 	14.3 	The Contractor shall not authorise any test or investigation to be carried out or technical report to be prepared by any Person who has a direct financial interest in the results of
such test, investigation or technical report. 

  

	 	14.4 	The Contractor shall ensure that, in relation to this Activity, the provisions of this clause are also included in all its agreements with its sub-Contractors and Personnel.

  

	15.	OWNERSHIP OF CONTRACT MATERIAL 

  

	 	15.1 	The Contractor hereby assigns to the Commonwealth the title to and all Intellectual Property throughout the world, in and derived from the Contract Material including future
copyright. 

  

	 	15.2 	The Contractor shall ensure that it uses, copies, supplies or reproduces the Contract material only for the purposes of this Contract. 

  

 Page 17 

	 	15.3 	The Contractor shall deliver all Contract Material to the Commonwealth or to the Partner Government counterpart agency as directed in writing by SAGRIC or the Commonwealth.

  

	16.	SAGRIC MATERIAL 

  

	 	16.1 	SAGRIC Material shall remain the property of the Commonwealth and the Contractor shall return all SAGRIC Material to SAGRIC or to the Partner Government counterpart agency as
directed in writing by SAGRIC or on expiration or termination of the Contract, whichever is the earlier. At the expiration or termination of the ECB Program all such material shall return to the Commonwealth or the Partner government counterpart
agency. 

  

	 	16.2 	SAGRIC and the Commonwealth will inform the Contractor of any SAGRIC and Commonwealth Material produced for and on behalf of SAGRIC and the Commonwealth in which third parties hold
the copyright and of any conditions attaching to the use of that material because of that copyright. The Contractor shall use that material only in accordance with those conditions. 

  

	 	16.3 	SAGRIC and the Commonwealth continually indemnifies the Contractor against any claim or proceeding that is made, threatened or commenced, and against any liability, loss (including
consequential loss), damage or expense (including legal costs on a full indemnity basis) that the Contractor incurs and suffers as a direct or indirect result of any infringement or alleged infringement of the intellectual property rights of any
person in relation to SAGRIC and Commonwealth material, except where the Contractor has used SAGRIC and Commonwealth material in a manner inconsistent with instructions provided by SAGRIC and the Commonwealth under clause 16.2.

  

	 	16.4 	The Contractor shall be responsible for the safe keeping and maintenance of SAGRIC and Commonwealth Material. 

  

	17.	DISCLOSURE OF INFORMATION 

  

	 	17.1 	The Contractor shall protect all documents and information relating to the Project and shall keep all SAGRIC and AusAID confidential information confidential.

  

	 	17.2 	Under no circumstances shall the Contractor or any Personnel publish or cause to be published or use for any purpose unrelated to the Services all or any part of the documentation
pertaining to the Services without the specific prior written approval of SAGRIC. 

  

	 	17.3 	The Contractor shall take all reasonable steps to ensure that all Personnel comply with the non-disclosure and confidentiality obligations referred to in sub-clause 17.2 and clause
18. 

  

 Page 18 

	 	17.4 	Formal statements to the media or articles relating to the Program, to be released or published in any way, shall in all cases be cleared before release or publication by SAGRIC or
AusAID or the Australian Diplomatic Mission accredited to the Partner Country. 

  

	 	17.5 	The Contractor shall, if appropriate, erect a sign at each Activity site that acknowledges the contributions of the Australian Government, through AusAID, and the Partner
Government. Such signs shall in all cases be discussed and agreed by SAGRIC and the Partner Government. 

  

	 	17.6 	AusAID may disclose matters relating to the Contract, including the Contract, except where such information may breach the Privacy Act 1988, to governmental departments and
agencies, Ministers and Parliamentary Secretaries, and to Parliament, including responding to requests for information from Parliamentary committees or inquiries. 

  

	18.	CONFIDENTIALITY 

  

	 	18.1 	The Contractor must not, and it must ensure that its Personnel do not, save to the extent that it is necessary to do so in order to execute this Contract, either directly or
indirectly, disclose to any person any knowledge, information or documents which it may acquire or come into the possession of during the execution of Services, or the affairs, property, trade secrets, confidential information or methods of business
of SAGRIC or the Commonwealth. 

  

	 	18.2 	The Contractor must ensure that its Personnel are bound in like terms to those set out in the preceding paragraph of this clause. 

  

	19.	ANNUAL PLANS (if applicable) 

  

	 	19.1 	No later than 15 February each year, the Contractor shall submit to SAGRIC for its consideration a draft Annual Plan containing the Contractor’s: 

 

	 	(a)	Proposed work plan for performance of the Services during the next financial year; and 

  

	 	(b)	A financial budget which sets out the estimated cost of implementing the work plan and specific physical tasks and inputs including a cashflow table by month, which conforms with
the requirements of AusGuide. 

  

	 	19.2 	 Agreement by SAGRIC to a proposed work plan contained in an Annual Plan shall always be strictly subject to and dependent upon the Parties effecting, in accordance
with the provisions of sub-clause 39.2, a written variation amending the Contract whenever necessary to take account of the proposed work plan. Pending the signing of a 

  

 Page 19 

	 	 
variation agreement, the proposed Annual Plan shall be of no force or effect at law or in equity upon the obligations of the Parties arising under the
Contract: 

  

	 	19.3 	SAGRIC shall, in its sole discretion, have the right to either approve or not approve the Contractor’s draft Annual Plans and any concomitant proposal for Contract Variation.

  

	20.	SAGRIC PAYMENTS POLICY 

  

	 	20.1 	All payments will be made in accordance with Schedule 2. 

  

	 	20.2 	Payments made by SAGRIC do not necessarily constitute final acceptance of the work performed by the Contractor and SAGRIC, after any payment, reserves its rights as against the
Contractor under this Contract. 

  

	21.	SAGRIC’S RIGHT TO RECOVER OVERPAYMENTS 

  

	 	21.1 	If during the period of this Contract SAGRIC determines that it has made an overpayment to the Contractor under the terms of the Contract, including an overpayment of a progressive
payment under Schedule 2, then SAGRIC shall have the right in its absolute discretion, to make adjustments to take account of the overpayment in relation to payments in satisfaction of subsequent claims by the Contractor. 

 

	 	21.2 	SAGRIC may review all or any of the payments it has made to the Contractor under the Contract and: 

  

	 	(a)	if the total of the amount paid to the Contractor is greater than SAGRIC determines by review to be payable under the Contract, then SAGRIC shall notify the Contractor in writing of
the amount of refund it has determined to be repayable; 

  

	 	(b)	the Contractor shall within thirty (30) days of its receipt of SAGRIC’s notification: 

  

	 	(i)	pay the refund to SAGRIC; or 

  

	 	(ii)	provide SAGRIC with evidence supporting the Contractor’s opinion concerning the amount of the refund; 

  

	 	(c)	failure by the Contractor to provide evidence as required in sub-clause (b)(ii) shall, in the absence of payment in full of the refund claimed in sub-clause (b)(i), be deemed to be
evidence of the Contractor’s agreement that the amount of refund is correct and payable to SAGRIC on demand; and 

  

 Page 20 

	 	(d)	SAGRIC shall, within thirty (30) days of its receipt of the Contractor’s evidence supporting its opinion concerning the amount of the refund, consider the
Contractor’s evidence and give the Contractor written notice either: 

  

	 	(i)	calling for payment within ten (10) days of the refund determined by SAGRIC’s review or as re-determined following its consideration of the Contractor’s evidence; or

  

	 	(ii)	of SAGRIC’s agreement that there is no refund payable. 

  

	 	21.3 	If the Contractor fails within the relevant time to make a refund to SAGRIC of an overpayment determined pursuant to sub-clause 21.2, then: 

  

	 	(a)	the amount of that refund is hereby deemed by the Parties to be recoverable by SAGRIC from the Contractor in any Court of competent jurisdiction as a debt due and payable to SAGRIC
by the Contractor, irrespective of whether the overpayment has arisen as a result of a mistake of fact or a mistake of law; and 

  

	 	(b)	SAGRIC shall have the right to call up the Performance Guarantee to the extent of the amount of the overpayment which has not been refunded by the Contractor.

  

	22.	CONTRACTOR DEFAULT AND INSOLVENCY 

  

	 	22.1 	If the Contractor is in default under the Contract SAGRIC may, without prejudice to any right of action or remedy which has accrued or may accrue in favour of either Party, by
notice in writing to the Contractor, specify the relevant default and, where such default is capable of remedy, require the Contractor within ten days of such notice to remedy, or commence appropriate action to remedy, the default.

  

	 	22.2 	For the purposes of this clause, the Contractor will be in default under the Contract, where the Contractor: 

  

	 	(a)	fails to commence work under the Contract, or proceeds at a rate of progress, so as to endanger the due and proper completion of the Contract; 

  

	 	(b)	fails to perform or observe any other obligation or undertaking to be performed or observed on its part under the Contract so that there is a substantial failure by the Contractor
to perform the Contract; 

  

	 	(c)	breaches any of the provisions of sub-clause 8.4, clause 14, sub-clause 30.1, or clause 36; 

  

	 	(d)	submits a series of incorrect invoices; 

  

	 	(e)	fails to undertake procurement and/or control of Activity supplies in strict compliance with clauses 11 and 12; 

  

	 	(f)	becomes, or there is a reasonable prospect of the Contractor becoming, subject to any form of insolvency administration; or 

  

 Page 21 

	 	(g)	is, or in the opinion of SAGRIC will be, unable to perform the Contract by reason of execution against its assets. 

  

	 	22.3 	In the event that the Contractor fails, within ten days after receipt of the written notice, to remedy or to commence appropriate action to remedy the specified default, SAGRIC may,
by written notice, terminate this Contract and: 

  

	 	(a)	recover from the Contractor any loss or damage suffered by SAGRIC; and/or 

  

	 	(b)	recover its loss or damage by claiming under the Performance Guarantee. 

  

	 	22.4 	Any damages, losses, costs and expenses recoverable by SAGRIC from the Contractor in consequence of the Contractor’s default under the Contract, including the cost of procuring
the Services from an alternative source, may be deducted from moneys then due to the Contractor under the Contract and if such moneys are insufficient for that purpose then the balance remaining unpaid shall be a debt due by the Contractor to SAGRIC
and may be: 

  

	 	(a)	set off against any other moneys due to the Contractor by SAGRIC under this or any other Contract between SAGRIC and the Contractor; and/or 

  

	 	(b)	recovered from the Contractor by SAGRIC in any Court of competent jurisdiction; and/or 

  

	 	(c)	Recovered under the Performance Guarantee. 

  

	 	22.5 	SAGRIC reserves the right at any time to undertake any steps it deems necessary and to consult with any party for the purposes of reviewing the Contractor’s performance of the
Services. 

  

	23.	SUSPENSION, TERMINATION AND REDUCTION 

  

	 	23.1 	If the Head Contract is for any reason terminated then SAGRIC has the right to terminate this Contract at any time by written notice. 

  

	 	23.2 	If any condition arises and continues which in the opinion of SAGRIC interferes or seems about to interfere with the successful carrying out of the Services, SAGRIC may by written
notice to the Contractor suspend in whole or in part the Services and payments to the Contractor under the Contract. 

  

	 	23.3 	If any of the conditions referred to in the preceding sub-clause continue for a period of fourteen days after SAGRIC has given notice to the Contractor of suspension of Services and
payments to the Contractor under the Contract, then SAGRIC may by written notice to the Contractor terminate the Contract. 

  

 Page 22 

	 	23.4 	SAGRIC shall, in addition to any other rights under the Contract, be entitled at any time to terminate the Contract, in whole or in part, by notifying the Contractor in writing that
the Contract or a specified part thereof will terminate on the date specified in the notice, or take such other action as it deems fit in order to fulfil its obligations under the Head Contract or for the timely continuance of the Program.

  

	 	23.5 	Upon receipt of a notice of suspension, termination or partial termination the Contractor shall: 

  

	 	(a)	stop work as specified in the notice; 

  

	 	(b)	take all available steps to minimise loss resulting from that suspension or termination and to protect SAGRIC Material and Contract Material; and 

  

	 	(c)	continue work on any part of the Services not affected by the notice. 

  

	 	23.6 	If this Contract is suspended or terminated under the preceding sub-clauses and the Contractor did not, either directly or indirectly, cause the suspension or termination, the
Contractor shall be entitled to receive in full and final settlement of all claims for all services rendered or documents supplied by or through the Contractor: 

  

	 	(a)	payments in accordance with Schedule 2 for Services rendered before the effective date of suspension or termination providing that the services rendered by the Contractor are
satisfactory to SAGRIC; and 

  

	 	(b)	subject to sub-clauses 23.7 and 23.8, any reasonable costs incurred by the Contractor and directly attributable to the suspension, partial termination or termination of this
Contract, as substantiated by the Contractor. 

  
 The Contractor will have no other right or claim to payment on any account in consequence of such suspension or termination. 
  

	 	23.7 	In the event of suspension, partial termination or termination SAGRIC’s liability under the payments provisions under Schedule 2 shall, in the absence of agreement to the
contrary, abate proportionately to the reduction in the Services. 

  

	 	23.8 	SAGRIC shall not be liable to pay compensation in an amount that would, in addition to any amounts paid or due or becoming due to the Contractor under this Contract, together exceed
the payments provisions specified in Schedule 2. The Contractor shall not be entitled to compensation for loss of prospective profits. 

  

	 	23.9 	Any termination or partial termination of this Contract is without prejudice to any right or remedies either party may have against the other; which may have arisen prior to the
date of termination. 

  

 Page 23 

	24.	MISTAKES IN INFORMATION 

  

	 	24.1 	The Contractor shall be liable for extra costs occasioned by any discrepancies, errors or omissions in Contract Material including any drawings, documentation or other information
supplied in writing by it, whether they have been accepted by SAGRIC or not, provided that such discrepancies, errors or omissions are not due to inaccurate drawings, documents or information supplied in writing to the Contractor by SAGRIC.

  

	 	24.2 	SAGRIC shall be liable for extra costs directly occasioned by any discrepancies, errors or omissions in any SAGRIC Material. 

  

	25.	FORCE MAJEURE 

  

	 	25.1 	The term “force majeure” as employed herein shall mean acts of God, strikes, lockouts (other than a lockout by or on behalf of the Contractor)
or other industrial disturbances, acts of the public enemy, wars, blockades, insurrection, riots, epidemics, landslides, earthquakes, storms, lightning, floods, washouts, civil disturbances, explosions and any other comparable events, not within the
control of either Party and which by the exercise of due diligence neither Party is able to overcome. 

  

	 	25.2 	If either Party is temporarily unable by reason of force majeure or laws or regulations in force in the Partner Country to meet any of its obligations under the Contract and
if such Party gives to the other Party written notice of the event within ten (10) days after its occurrence, such obligations of the Party as it is unable to perform by reason of the event shall be suspended for as long as the inability
continues. 

  

	 	25.3 	Neither Party shall be charged with responsibility for loss or damage caused by events or delays arising from force majeure as defined above. 

  

	 	25.4	If SAGRIC determines under clause 25.2 that a force majeure event has occurred and its effect is continuing for a period of 90 days, SAGRIC may give the Contractor notice
which either: 

  

	 	(a)	deletes that part of the Services which are affected by the force majeure event; or 

  

	 	(b)	terminates the Contract with effect of 28 days after the giving of notice. 

  

	 	25.5 	Where notice is given under sub-clause 25.4(a), the amount payable to the Contractor under Schedule 2 will be reduced by the Contract value of the omitted Services as if it were a
Variation under clause 38. 

  

	 	25.6 	Where a notice is given under sub-clause 25.4(b), the Contractor will be entitled to payment of the amount specified as payable in Schedule 2, clause 4. 

  

 Page 24 

	26.	INSURANCE AND INDEMNITY 

  

	 	26.1 	Subject to sub-clause 26.2 the Contractor shall indemnify and keep indemnified SAGRIC, its officers, employees and agents from and against any loss, damages expenses or costs
whatsoever (including legal costs on a solicitor and own client basis and the costs of any settlement) arising from any claim, demand, action, suit or proceeding that may be made or brought by any person against SAGRIC, its officers, employees or
agents or any of them for or in respect of personal injury or death of any person whomsoever or loss of or damage to any property or any other loss or damage whatsoever arising out of or as consequence of any default, unlawful act or omission or any
negligence by the Contractor or any Personnel in or in connection with the execution of this Contract or the performance of the Services or otherwise. 

  

	 	26.2 	The Contractor shall not, under sub-clause 26.1, be rendered liable for or in respect of personal injury or the death of any person or loss of or damage to property resulting from
any negligent act, omission of SAGRIC or its officers or employees, or for or in respect of any claim, demand, action, suit or proceeding, or costs or expenses in respect thereof. 

  

	 	26.3 	The Contractor shall take out and maintain adequate insurance against claims by third parties resulting from its performance of the Services. The Contractor shall provide evidence
of adequate and current insurance to SAGRIC within ten (10) days of its receipt from SAGRIC of a request in writing for such evidence. 

  

	 	26.4 	The Contractor shall take out and maintain adequate overseas medical, dental and medical evacuation insurance coverage that may be necessary or desirable for Personnel and
dependants who may travel for the purposes of the Services. The Contractor shall provide evidence of adequate and current insurance to SAGRIC within ten (10) days of its receipt from SAGRIC of a request in writing for such evidence.

  

	 	26.5 	SAGRIC undertakes no responsibility in respect of any life, accident, travel or any other insurance coverage that may be necessary or desirable for Personnel and dependants who may
travel for the purposes of the Services. 

  

	27.	PERFORMANCE GUARANTEE (Not Applicable) 

  

	 	27.1 	The Contractor shall provide and maintain security for the due performance of the Contractor’s obligations under this Contract. 

  

	 	27.2 	Such security will be in the following form: 

  

	 	(a)	A performance guarantee, in the form attached to this Contract in Schedule 4, given by a party or parties approved by SAGRIC unconditionally and irrevocably guaranteeing the
Contractor’s obligations under this Contract (“Performance Guarantee”). 

  

 Page 25 

	 	27.3 	The Performance Guarantee must be maintained effectively until notice by SAGRIC that the Contractor’s obligations under this Contract have been completed.

  

	 	27.4 	SAGRIC is not obliged to make any payments under the Contract, whether or not such payments are due, prior to receipt of the Security duly executed, and where applicable stamped, in
accordance with sub-clauses 26.2(a). 

  

	 	27.5 	If SAGRIC becomes entitled to exercise all or any of its rights to recover moneys under or in relation to the Contract, SAGRIC may exercise all or any of its rights under the
Security. 

  

	28.	WORKER’S COMPENSATION 

  

	 	28.1 	The Contractor shall indemnify SAGRIC and the Commonwealth against liability of SAGRIC or the Commonwealth for death of or injury to any person employed by the Contractor on work
under the Contract, except to the extent that such death or injury results from any unlawful or negligent act or omission on the part of SAGRIC or the Commonwealth. 

  

	 	28.2 	Before commencing work under the Contract, the Contractor shall fully insure, or register with the appropriate statutory authority against liability for death of or injury to
persons employed by the Contractor, including liability by statute and common law. The insurance shall be maintained until all work under the Contract is completed. 

  

	 	28.3 	The Contractor shall ensure each Sub-Contractor is insured against the Sub-Contractor’s corresponding liability. 

  

 Page 26 

	29.	NOTICES 

  

	 	29.1 	Any notice or other communication shall be in writing, signed by the party sending it and shall be addressed as follows: 

  

	 	(a)	If to the Contractor: 

  
 Datec (PNG) Ltd. 
 PO Box 504 
 Port Moresby PNG 
 Telephone No: +(675) 325 9022 
 Facsimile No: +(675) 325 9066 
  
 or such other address as the Contractor may from time to time by notice in writing communicate to SAGRIC and have received an acknowledgment of receipt of the notice. 
  

	 	(b)	If to SAGRIC 

  
 Program Director 
 PNG Education Capacity Building Program 
 SAGRIC International Pty Ltd. 
 Level 2, 70 Hindmarsh Square 
 ADELAIDE SA 5001 
 Facsimile No: (08) 8224 0453 
  
 or such other address as SAGRIC may from time to time by notice in writing
communicate to the Contractor and have received an acknowledgment of receipt of the notice. 
  

	 	29.2 	Any such notice or other communication shall be delivered by hand or shall be sent by prepaid post or facsimile to the address of the party to which it is sent.

  

	 	29.3 	Any such notice or communication shall be deemed to have been given and served: 

  

	 	(b)	where delivered by hand, at the time of delivery; 

  

	 	(c)	where despatched by prepaid post, 48 hours after the time when it was posted; and 

  

	 	(d)	where despatched by facsimile transmission, 24 hours after the time recorded on a transmission result report which indicates complete transmission unless within those 24 hours the
intended recipient informs the sender that the transmission was received in an incomplete or garbled form. 

  

 Page 27 

	30.	SUB-CONTRACTORS 

  

	 	30.1 	The Contractor shall not, without the prior written approval of SAGRIC; 

  

	 	(e)	engage sub-Contractors to perform the Services or any part of the Services; 

  

	 	(f)	permit any of its duties or obligations under the Contract to be performed or carried out by any other person; or 

  

	 	(g)	assign in whole or part its interest in the Contract. 

  

	 	30.2 	The Contractor shall be fully responsible for the performance of the Services notwithstanding that the Contractor, with the consent of SAGRIC, may have sub- Contracted the
performance of any part of the Services. 

  

	31.	WAIVER 

  

	 	31.1 	A waiver by SAGRIC in respect of any breach of a condition or provision of this Contract shall not be deemed to be a waiver in respect of any other or of any subsequent breach.

  

	32.	EQUAL OPPORTUNITY FOR WOMEN IN THE WORKPLACE (if applicable) 

  

	 	32.1 	The Contractor shall comply with its obligations, if any, under the Equal Opportunity for Women in the Workplace Act, 1999 (“the Act”). Information about the
legislation can be obtained from the Equal Opportunity for Women in the Workplace Agency (EOWA) on (02) 8255 6300 or via the EOWA website www.eowa.gov.au 

  

	 	32.2 	The Contractor shall not enter into a sub-Contract under this Contract with a sub Contractor named by the Director of EOWA as an employer currently not complying with the Act.

  

	 	32.3 	If in the course of the Contract, the Contractor fails to comply with the Act, SAGRIC shall, without prejudice to SAGRIC’s rights under the Contract, send a notice to the
Contractor in writing advising that the failure to comply constitutes a breach of the Contract and that the Contractor should contact the EOWA for information on the Act’s compliance requirements. 

  

 Page 28 

	33.	DISPUTE RESOLUTION AND ARBITRATION 

  

	 	33.1 	In the event that any question, difference or dispute arises between the parties concerning this Contract or ancillary thereto which cannot be satisfactorily resolved between them,
then the parties agree to use their best endeavours to agree on a process for resolving the matter in dispute through means other than litigation or arbitration, such as but not limited to mediation, conciliation or mini-trial.

  

	 	33.2 	Either party may, after using their best endeavours as aforesaid, which have failed to resolve the matter in dispute, by notice in writing to the other party declare the matter in
dispute to be deadlocked. 

  

	 	33.3 	The matter in dispute declared to be deadlocked, will be referred to the managing director or chief executive officer (by whatever name called) of the parties or their respective
nominees who will endeavour to reach an agreement regarding the matter in dispute. 

  

	 	33.4 	If the deadlock cannot be resolved within 21 days of the referral made pursuant to clause 32.3 then the dispute may be referred by any/either party for mediation to an independent
mediator and if he is unavailable within 7 days, then to a person agreed to by the parties and failing agreement within 7 days of a request by a party for such agreement, to a person nominated by the President of the Law Society of South Australia
Incorporated. 

  

	 	33.5 	The person conducting the mediation pursuant to clause 33.4 (“the mediator”) will not be an arbitrator and will conduct the mediation in accordance with the Law
Society of South Australia Mediation Guidelines. 

  

	 	33.6 	In the event that the matter in issue is unable to be resolved by the means referred to in sub-clauses 33.1 to 33.5 within a reasonable time then the same may be referred by
any/either party for arbitration pursuant to the Commercial Arbitration Act (South Australia) at Adelaide in the State of South Australia by an arbitrator agreed upon by both Parties or if the Parties are unable to agree upon an arbitrator by an
arbitrator appointed by the President of the Law Society of South Australia Incorporated. 

  

	 	33.7 	Pending determination of a matter in issue referred to arbitration under this clause, the Contractor shall, unless advised otherwise by SAGRIC, continue to perform the Services.

  

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	34.	GOVERNING LAW 

  

	 	34.1 	The Contract and its interpretation and performance shall be subject to the laws of the State of South Australia and shall in all respects be justiciable in the courts of the State
of South Australia. 

  

	 	34.2 	The parties in all respects submit to the jurisdiction of the courts of the State of South Australia 

  

	35.	FINANCIAL RECORDS 

  

	 	35.1 	The Contractor shall in respect of the Activity, including in respect of any reimbursable costs, maintain a sound financial system capable of verifying all statements and
acquittals. The system shall be underpinned by a basic regime of internal controls that permit the effective reconciliation of working documents. 

  

	 	35.2 	Without limiting the generality of the obligations in sub-clause 35.1 the Contractor shall keep proper accurate and detailed accounts and records in relation to the Contract,
including in relation to reimbursable or acquittable costs and payments pursuant to the Contract. 

  

	 	35.3 	The Contractor shall ensure proper accounting standards and controls are exercised and reimbursable expenditure in relation to the Activity is recorded separately from other
transactions of the Contractor. 

  

	 	35.4 	The Contractor shall at no cost to SAGRIC and at all reasonable times afford adequate facilities for audit and inspection of the financial records referred to in sub-clause 35.2 by
SAGRIC or its authorised representatives. The Contractor shall furnish such information and documents as are required by SAGRIC including but not limited to accounts, general financial statements of the Contractor, procurement records, time-books,
payroll records, receipts, vouchers, registers and other documents. SAGRIC shall be entitled to make copies and extracts of the same. 

  

	 	35.5 	The Contractor shall cause the financial records referred to in sub-clause 35.4 to be preserved and kept available for audit and inspection until the expiration of six years after
the Term of the Contract but in any case no such documents shall be destroyed without prior approval in writing by SAGRIC. 

  

 Page 30 

	36.	REPORTING REQUIREMENTS 

  

	 	36.1 	The Contractor shall strictly comply with SAGRIC’s reporting requirements as specified in Schedule 1. All reports shall be submitted in hard copy and with a complete copy of
the report either on floppy disk/CD-R (IBM Format using Microsoft Office products or sent as an attachment via e-mail to the Program Manager. 

  

	37.	ANTI-CORRUPTION 

  

	 	37.1 	The Contractor shall not make or cause to be made any offer, gift or payment, consideration or benefit of any kind, which would or could be construed as an illegal or corrupt
practice, either directly or indirectly to any party, as an inducement or reward in relation to the execution of this Contract. Any such practice shall be grounds for termination of this Contract by SAGRIC without prior notice.

  

	38.	ENTIRE CONTRACT AND VARIATION 

  

	 	38.1 	The Contract constitutes the entire Contract between the Parties and supersedes all communications, negotiations, arrangements and agreements, either oral or written, between the
Parties with respect to the Activity. 

  

	 	38.2 	No agreement or understanding purporting to vary or extend the Contract shall be legally binding upon either Party unless it is in writing in the form of a variation of the Contract
which has been signed by the officers of each of the Parties authorised in that behalf and duly witnessed. 

  

 Page 31 

 EXECUTED AS A CONTRACT 
  

IN WITNESS whereof this Contract has been executed by SAGRIC, by an authorised officer, and has been executed by the Contractor. 
  
 SIGNED for and on behalf of 
 SAGRIC INTERNATIONAL PTY LTD by 
  

					
			
	 Janet Davy (Program Manager)
	 	 	 	/s/    JANET DAVY        
	Name and Designation	 	 	 	Signature

  
 in the presence of - 
  

					
			
	 Geoffrey Thompson
	 	 	 	/s/    GEOFFREY THOMPSON        
	Name	 	 	 	Signature of Witness

  
 THE COMMON SEAL of
<Contractor> 
  
 Was hereunto affixed in the presence of
:- 
  

					
			
	  	 	 	 	[SEAL GOES HERE]
			
	 Illegible
	 	 	 	/s/    Illegible        
	Name and Designation	 	 	 	Signature

  

					
	Date 21/04/05	 	 	 	 
			
	 Illegible
	 	 	 	/s/    Illegible        
	Name	 	 	 	Signature of Witness

  

 Page 32 

  
 SCHEDULE 1 

 
 EDUCATION CAPACITY BUILDING PROGRAM 
  
 Management And Support Of Information Technology Services 

 
 Scope of Services 
  

	1.	BACKGROUND 

  
 In 1994 the Government of Papua New Guinea (GoPNG) embarked on a major program of educational reform. In 2002 the Government of Australia (GoA) and the GoPNG agreed to provide further support to the Education Reform
Agenda through a major integrated program of development assistance called the Education Capacity Building Program (ECBP). 
  
 The ECBP is a ten-year program, coinciding roughly with the next PNG National Education Plan for 2005 – 2014. The ECBP adopts a program-based approach with
activities to be identified and submitted for funding progressively over the life of the Program. The Program is led and Implemented by the PNG Department of Education (DoE). 
  
 The Program is designed to support the Education Reform Agenda through strengthening the organisational systems and practices of the
national education administration, and improving systemic integration among the four levels of administration responsible for managing and financing the education sector. 
  
 The Program commenced on February 1, 2004. The first five years of the Program comprise two phases: Phase 1 is to be completed by 2005
and Phase 2 by 2008. SAGRIC International is the Australian Managing contractor for these first two phases of the Program on behalf of AusAID. 
  

	2.	DESCRIPTION OF THE ACTIVITY 

  
 ECBP is seeking proposals from appropriately experienced organisations with a record of success in delivering Information Technology services to large public and private
sector organisations. As part of the overall capacity building program there is a requirement to strengthen the Information Technology systems and infrastructure to assist with the planning and effective delivery of Educational services 

 
 The range of required services includes: 
  

	 	•	 	Installation of new Local Area Networks. 

  

	 	•	 	Installation of wireless telecommunication links between sites. 

  

	 	•	 	Provision and installation of new desktop devices. 

  

	 	•	 	Provision and management of servers in a central Computer Centre. 

  

	 	•	 	Upgrades to current versions of a range of software products and the provision of appropriate training to users. 

  

	 	•	 	xxx going support and management of the IT facilities. 

  

 Page 33 

	3.	TIMEFRAME 

  
 It is expected that a contracted will be awarded in February 2005 and the Deployment Project completed by June 2005. 
  
 It is expected the after successful completion of the Deployment Project the ongoing Services Agreement would be for 5 years. 
  

	4.	SPECIFICATIONS FOR THE SERVICES 

  
 Attachments “A” and “B” to the RFT documents provide detailed descriptions of the required hardware, software, communications and services. Responses
are required to each of the sections in these attachments. 
  
 Tenderers must
provide evidence of their financial and technical capacity to undertake the project successfully and provide the required management and support services. 
  

	5.	TENDER ASSESSMENT PROCESS 

  
 Proposals will be assessed against technical criteria (75%) and financial criteria (25%). 
  
 Criteria for assessment are detailed in the Request for Tender, Annexes B and C. 
  
 The bids will be assessed by a Tender Assessment Panel (TAP) against technical criteria. The
financial component of tenders deemed by the TAP to not meet technical criteria will not be assessed. 
  

	6.	MANAGEMENT OF THE PROJECT 

  
 The project will be supervised by a Steering Committee comprising nominated members from the Department of Education and ECBP advisors. The successful organisation will
be required to report progress on a monthly basis to this Committee. 
  
 All
communication between the successful tenderer and the PNG Department of Education or the ECBP will be through the Program Manager, ECBP located at SAGRIC Adelaide. 
  

	7.	CLOSING DATE 

  
 Tenders must be placed in the SAGRIC International Tender Box located at Level 2, 70 Hindmarsh Square, Adelaide no later than 4 pm Adelaide time (ACDT) on Friday, 28th January 2005 for Australian bids and Tuesday, 1st February 2005 for New Zealand and PNG bids. They must be marked to the attention of Mr Ian Pascoe, Program Manager, ECBP. and be clearly labelled, “ECBP Provision of Information Technology
Services”. 
  
 For further information about ECBP and the tender visit the
SAGRIC website on www.sagric.com.au or contact Ms Janet Davy, ATL ECBP, on telephone +675 325 5391 , or email idavy@ecbp.sagric.com 
  
 Tenders close at 4 pm Adelaide time (ACDT) on Friday, 28th January 2005 for Australian bids and 4 pm Adelaide time on Tuesday 1st February 2005 for
New Zealand and PNG bids. 
  

 Page 34 

 SCHEDULE 2 
  

Basis of Payment 
  
 PNG EDUCATION CAPACITY BUILDING PROGRAM 
  
 INFORMATION TECHNOLOGY MANAGEMENT AND SUPPORT SERVICES 
 ACTIVITY 
  
 For the performance of the
Services described in the Contract, SAGRIC shall pay the Contractor as follows: 
  

	1.	Financial Limitation 

  

	 	1.1	The Financial Limitation over the Activity life is a maximum of $A2,113,468. This Financial Limitation is exclusive of any GST and or VAT which may be payable. The Contractor shall
not expend or incur expenditure in excess of the absolute financial limitation specified in this Schedule. The provision of all Funds to the Contractor is subject to compliance with all the requirements set down within this Contract.

  

	2.	Milestone Payments 

  

	 	2.1	The milestone payment payable by SAGRIC to the Contractor shall be paid progressively within thirty (30) days of SAGRIC’s acceptance of the achievement of milestones as
detailed in clause 7 of this Schedule, subject to the receipt by SAGRIC from the Contractor of: 

  

	 	(a)	a correctly rendered invoice; and 

  

	 	(b)	certification as per Milestone Payments performance indicators. 

  

	3.	Suspension Of Payments For Non-Performance 

  

	 	3.1	If the Contractor fails to supply the Services in accordance with the Contract SAGRIC shall upon giving written notice: 

  

	 	(a)	suspend all pending and/or future milestone payments until such time as the Contractor: 

  

	 	(i)	rectifies its performance of the Services and this rectification has been acknowledged in writing by SAGRIC as being satisfactory to SAGRIC. 

  

 Page 35 

	4.	Termination For Force Majeure Event 

  

	 	4.1	If the Contract is terminated pursuant to clause 25.4(b), the Contractor: 

  

	 	(a)	will be entitled to: 

  

	 	i)	payment for all milestones satisfactorily completed before the date of termination in the written notice issued pursuant to clause 25.4(b) of the Contract and which have not been
invoiced under clause 20 of the Contract; 

  

	 	ii)	in respect of milestones commenced before, but not completed by the date of termination, payment for the work already satisfactorily performed in relation to that output on a pro
rata basis having regard to the amount specified in Schedule 2 as determined by SAGRIC; 

  

	 	iii)	any reimbursable costs (as described in clause 8 of this Schedule) which have not been invoiced or paid under clause 20 of the Contract; 

  

	 	(b)	must submit a final invoice for the amounts payable under sub-clause 4(a) of this Schedule; and 

  

	 	(c)	will be bound by any determination by SAGRIC pursuant to sub-clause 4(a)(ii) of this Basis of Payment. 

  

	5.	Claims for Payment 

  

	 	5.1    (a)	the contractor’s claims for payment shall be submitted when due in a form identifiable with the services and shall be: 

  

	 	(b)	marked with the relevant Contract number; 

  

	 	(c)	certified by an authorised person as incurred in accordance with the approved budget for the Activity and the terms of this Contract; 

  

	 	(d)	in the case of milestone payments, claimed in accordance with the requirements of clause 2 of this Schedule; 

  

	 	(e)	in the case of reimbursable costs (detailed in clause 8), certified by the Contractor’s Authorised Representative as having been paid (claims for payment must include a copy of
the paid invoice, stamped “paid” and certified by the Activity Director) and incurred in accordance with the approved budget for the reimbursable items as detailed in the table at clause 8 in this Schedule; and 

  

	 	(f)	forwarded to: 

  
 The Program Director – ECBP, 
 SAGRIC International Pty. Ltd. 
 Level 2, 70 Hindmarsh Square 
 Adelaide SA 5001 
  

 Page 36 

	6.	Payment of Claims 

  

	 	6.1    (a)	Claims will be paid in Australian Dollars. Where the Contractor claims reimbursement for expenditure incurred in the currency of the Partner Country or of a foreign country while in
direct transit between Australia and the Partner Country, payment will be made of the equivalent amount in Australian Dollars converted at the rate calculated in accordance with paragraphs (b) and (c) as applicable.

  

	 	(b)	Where the Contractor converts Australian currency into local currency for the Activity, the rate is the weighted average exchange rate of all such conversions in the month in which
expenditure occurred. If no currency was converted in the month of expenditure, the rate is the weighted average exchange rate of all conversions for the Activity in the most recent month in which currency was converted. 

  

	 	(c)	Where the Contractor converts currency other than Australian currency into local currency, the rate is the exchange rate that would have applied if Australian currency had been
converted, calculated in accordance with paragraph (b). 

  

	 	(d)	Evidence of the exchange rate that applied to the transaction(s) shall be attached to such claims. 

  

	7.	Milestone Payments 

  

	 	7.1	Milestone Payments will be made in accordance with the Milestone Table below. 

  

						
	 MILESTONE

	  	 DUE DATE FOR
COMPLETION

	  	VALUE

	 
	 Contract signing
	  	1 May 2005	  	20	%
	 Design Network and Work Plan approved by DoE
	  	31 May 2005	  	15	%
	 Procurement of equipment for central site covering communication and servers
	  	31 May 2005	  	30	%
	 Install Workstations/Printers at FinCorp Haus
	  	31 July 2005	  	15	%
	 Install Workstations/Printers at other sites
	  	31 August 2005	  	10	%
	 Activity Completion Report indicating system is live and fully functional approved by DoE
	  	30 November 2005	  	10	%

  

	8.	Reimbursable Costs 

  
 The Subcontractor may be eligible for reimbursement of actual costs for approved activities outside the Outputs covered by Milestone payments under this
contract. Such activities may only be undertaken with the express approval of SAGRIC International, which approval will be conditional upon prior approval of the activity by the ECBP Activity Approval Group. 
  

 Page 37 

	9.	Asset procurement guidelines 

  
 The following gives an indication of the minimum number of machines that will be procured. During the implementation of the contract, the Contractor
should work closely with the SAGRIC Adviser to determine the actual number and specifications of assets required. 
  

			
	 ITEM DESCRIPTION

	  	 MIN ORDER NOS

	 Monitors
	  	224
	 Resource Personal Computers
	  	44
	 Thin Client Devices
	  	180
	 Laptop Computers
	  	16
	 Printers
	  	To be advised

  

 Page 38 

 SCHEDULE 3 
  

Register of Activity Assets 
  
 EDUCATION CAPACITY BUILDING PROGRAM (ECBP) 
  
 INFORMATION TECHNOLOGY MANAGEMENT AND SUPPORT SERVICES 
 ACTIVITY 
  

													
	 IDENTIFICATION
 NUMBER

	  	 DESCRIPTION
 OF ASSET

	  	 PURCHASE
 REFERENCE

	  	 PURCHASE
 DATE

	  	 PURCHASE
 PRICE

	  	 DATE
 RECEIVED
 LOCATION

	  	 REMARKS INCLUDING
 DISPOSAL ACTION &
 PRICE RECEIVED

	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 

  
 The structure and format of this
Asset Register may be changed to suit a computer application and/or GPNG legal requirements for management of Departmental Assets. The information recorded should be negotiated with the SAGRIC Adviser and DoE. The above information should be
regarded as a guide for the minimum amount of information to be stored. 
  

 Page 39 

  
 SCHEDULE 4 (Not
Applicable) 
  
 PERFORMANCE GUARANTEE 
  
 GUARANTEE AND INDEMNITY 
  
 THIS GUARANTEE AND INDEMNITY is made
                     day of                     
2004 
  
 BY:
                                        
         (the “Guarantors”) 
  
 IN FAVOUR OF: SAGRIC INTERNATIONAL PTY LTD ABN 63 007 889 081 of 70 Hindmarsh Square, Adelaide, South Australia 5001 (“the Beneficiary”) 
  
 RECITALS 
  

	A.	At the request of the Guarantors, the Beneficiary is willing to enter into the Contract (refer clause 2.8). 

  

	B.	The Guarantors acknowledge that the Beneficiary is entering into the Contract because of the granting of, and the Guarantors expect to derive a commercial benefit from, this
Guarantee. 

  
 THIS DEED WITNESSES 
  

	1.	Recitals 

  
 The parties acknowledge the recitals are true and form part of this Deed. 
  

	2.	Interpretations and definitions 

  
 Unless qualified by or inconsistent with the context:- 
  

	 	2.1	A reference to one gender includes the other gender; a reference to a person includes an incorporated body or other association of persons to a governmental agency and vice versa;
the singular includes the plural and vice versa. 

  

	 	2.2	Where a party comprises more than one person, this Deed applies to all of them together and each of them separately. 

  

	 	2.3	Headings are for convenience of reference and will not effect the interpretation of this Deed. 

  

 Page 40 

	 	2.4	This Deed is written in plain English. No rule resolving a doubt as to interpretation against the party preparing this Deed will apply. The specific provisions will not limit the
interpretation of general provisions. 

  

	 	2.5	“Head Contract” means the PNG Education Capacity Building Program contract, its general conditions and annexures entered into on February 2004 between the
Commonwealth of Australia and SAGRIC International Pty Ltd ABN 63 007 889 081. 

  

	 	2.6	“Contractor” means the partner organisation that is the legal entity entering into this contract. 

  

	 	2.7	“Contractor Obligations” means the full performance by the Contractor of all its express or implied obligations (whether contingent, prospective or actual) pursuant
to or in connection with the Contract. 

  

	 	2.8	“Contract” means the Contract between the Beneficiary and the Contractor made on or about the date of this Deed, pursuant to which the Contractor has
agreed to perform certain works for the Beneficiary as Contractor to the Beneficiary, those subcontracted works comprising part of the works under the Head Contract. 

  

	3.	Guarantee 

  
 In consideration of the Beneficiary at the request of the Guarantors entering into the Subcontract, the Guarantors unconditionally guarantee the
Contractor’s Obligations. 
  

	4.	Nature of Guarantee 

  

	 	This	guarantee: 

  

	 	4.1	is a principal obligation and will not be treated as ancillary or collateral to any other right or obligation however created or arising; 

  

	 	4.2	may be enforced against the Guarantors or any one of them without the Beneficiary first being required to exhaust any remedy it may have against the contractor to enforce any
security it may hold with respect to the Contractor’s Obligations; 

  

	 	4.3	is a continuing guarantee and indemnity for the whole of the Subcontractor’s Obligations and will be irrevocable and will remain in full force and effect until discharged; and

  

	 	4.4	will not be considered as wholly or partially discharged by the performance at any time of any of the Contractor’s Obligations or by any settlement of account or by any other
matter or thing whatever and will apply to the present and future scope of the Contractor’s Obligations. 

  

 Page 41 

	5.	Guarantor’s Liability Absolute 

  

	 	5.1	The liability of the Guarantors is absolute and will not be affected by anything which, but for this provision might operation to release or otherwise exonerate the Guarantors from
their obligations in whole or in part including, without limiting the generality of the foregoing: 

  

	 	5.1.1 	the grant to the Contractor or any other person of any time, waiver or other indulgence or concession in respect of the Contractor’s Obligations; 

  

	 	5.1.2 	any transaction or arrangement that may take place between the Beneficiary and the Contractor, Guarantors or any other person; 

  

	 	5.1.3 	the insolvency of the Contractor; 

  

	 	5.1.4 	the variation (including a variation that increases the Contractor’s Obligations), extinguishment, unenforceability, failure, loss, release, discharge, abandonment or transfer
either in whole or in part of the Contract; 

  

	 	5.1.5 	the Contractor’s Obligations or any part of them being or becoming wholly or partially illegal, void, voidable or unenforceable; 

  

	 	5.1.6 	the failure by the Beneficiary to give notice to the Guarantors of any default by the Contractor under the Contract; 

  

	 	5.1.7 	any legal limitation, disability, incapacity or other circumstance related to the Contractor; or 

  

	 	5.1.8 	the failure of any Guarantor to execute this guarantee or the granting of this guarantee by any Guarantor being or becoming void or voidable. 

  

	 	5.2	This guarantee extends to cover the Contract as amended, varied or replaced either with or without the consent of the Guarantors. 

  

	6.	Indemnity 

  
 If the whole or any part of the Contractor’s Obligations are or may be unperformed by or irrecoverable from the Contractor by the Beneficiary for any
reason whatever, then: 
  

	 	6.1	the Guarantors, as a separate and additional liability under this guarantee, indemnify the Beneficiary in respect of the Contractor’s Obligations; 

  

	 	6.2	the Guarantors, as principal debtors, agree to pay the Beneficiary, when demanded in writing, a sum equal to the amount of money due and payable pursuant to the Contractor’s
Obligations, or the damages, losses and expenses resulting from the failure to perform the Contractor’s Obligations; and 

  

 Page 42 

	 	6.3	for the purposes of this indemnity, this clause 6 will be construed as if the monies were recoverable and the terms of the guarantee will apply as far as possible, with any
necessary changes being made. 

  

	7.	Joint and Several Guarantee 

  

	 	7.1	Where this guarantee is given by more than one person, the obligations on the part of the Guarantors contained in this guarantee take effect as joint and separate obligations, and
references to the Guarantors take effect as references to those persons jointly, any combination of them, and to any one of them. 

  

	 	7.2	None of those Guarantors will be released from liability under this Guarantee by reason of any other Guarantor not executing this guarantee, or this guarantee ceasing to be binding
as a continuing security on any other Guarantor and the release by the Beneficiary of any Guarantor from this guarantee will not affect the liability of the other Guarantors. 

  

	8.	Expenses 

  
 The Guarantors will reimburse the Beneficiary for the expenses of the Beneficiary incurred in connection with the enforcement of, or the preservation of
any rights under this guarantee including legal costs and expenses on a full indemnity basis. 
  

	9.	Assignment 

  
 The Beneficiary is entitled to assign, either absolutely or in part or by way of security, its rights under this deed without the need for prior written
consent from the Guarantors. 
  

	10.	Notices 

  
 Any notice to be given by one party to the other will be signed by the party giving the notice or by one of its officers or its duly authorised solicitor
or agent and will be hand delivered or sent by prepaid post or sent by facsimile to the address or facsimile number (as the case may be) shown at the commencement of this Deed (or any other address or facsimile number that a party may notify to the
other) and will be deemed sufficiently given:- 
  

	 	10.1 	in the case of hand delivery, on the date of delivery; or 

  

	 	10.2 	in the case of prepaid post, 2 business days after being sent by prepaid post; or 

  

	 	10.3 	in the case of facsimile, on receipt by the sender of a successful transmission answerback. 

  

 Page 43 

	11.	Governing Law 

  
 This Agreement is to be construed according to South Australian laws and the parties submit themselves to the jurisdiction of the Courts of South
Australia and any competent appellate courts. 
  

	12.	Severability of Provisions 

  
 Any provision in this guarantee which is prohibited or unenforceable in any jurisdiction will, as to that jurisdiction, be ineffective to the extent of
the prohibition or unenforceability without invalidating the remaining provisions of this guarantee or affecting the validity or enforceability of that provision in any other jurisdiction. 
  

	13.	Execution by facsimile 

  
 This Guarantee may be executed by the parties exchanging executed facsimile copies. 
  

	
	EXECUTED AS A DEED
	
	Guarantors:
	
	 THE COMMON SEAL of the Guarantor
 was affixed in the presence of:

	
	  
	Director
	
	  
	 Director/Secretary

  

 Page 44Network Management Outsourcing Agreement

 Exhibit 10.21 
  

			
	Network Management Outsourcing Agreement	  	

		
	Bank of South Pacific Ltd	  	Network Management Outsourcing Agreement
		
	 	  	

  
  
  

 Abbreviations 
  

			
	 Bank South Pacific Limited
	  	BSP
		
	 Datec PNG Limited
	  	 Datec

		
	 Business Continuity Planning
	  	 BCP

		
	 Hardware, Maintenance, Support Services for designated Equipment
	  	 Break Fix

		
	 BSP Customer Business Manager
	  	 CBM

		
	 Disaster Recovery Plan
	  	 DRP

		
	 Financial Point of Sale
	  	 FPOS

		
	 Local Area Network
	  	 LAN

		
	 Managed Third Parties
	  	 MTP

		
	 Moves, Adds and Changes
	  	 MACs

		
	 Network Terminal Unit
	  	 NTU

		
	 Request for Service
	  	 RFS

		
	 Service Level Agreement
	  	 SLA

		
	 Single Point of Contact
	  	 SPOC

		
	 Wide Area Network
	  	 WAN

  

					
	Commercial in Confidence	  	Page 4	  	May 2004
	
	Network Management Outsourcing Agreement

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

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

  

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

  

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

  

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

  

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

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

					
	Commercial in Confidence	  	Page 5	  	May 2004
	
	Network Management Outsourcing Agreement

  
 TABLE OF CONTENTS

  

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

  

					
	Commercial in Confidence	  	Page 6	  	May 2004
	
	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

  

					
	Commercial in Confidence	  	Page 7	  	May 2004
	
	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

  

					
	Commercial in Confidence	  	Page 8	  	May 2004
	
	Network Management Outsourcing Agreement

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

  

					
	Commercial in Confidence	  	Page 9	  	May 2004
	
	Network Management Outsourcing Agreement

  
 OVERVIEW 
  

	1.1	Introduction 

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

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

  

	 	•	 	Perform their respective obligations for the benefit of the BSP 

  

	1.2	Document Structure 

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

	1.3	Agreement Assumptions 

  
 The following assumptions apply to this agreement: 
  

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

  

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

  

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

  

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

 

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

  

	1.4	Contract Term 

  
 The commencement date for this contract will be 16th June 2004. 
  
 The initial term of the contracted agreement is 5 years from the commencement date. The BSP then have the option to renew the agreement for another 5 years subject to any restructuring of the agreement as required by the parties.

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

	1.5	Hours of Support 

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

					
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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) 

  

					
	Commercial in Confidence	  	Page 14	  	May 2004
	
	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. 

  

					
	Commercial in Confidence	  	Page 15	  	May 2004
	
	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; 

  

					
	Commercial in Confidence	  	Page 16	  	May 2004
	
	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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	Network Management Outsourcing Agreement

	 	(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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	Network Management Outsourcing Agreement

	 	•	 	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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	Network Management Outsourcing Agreement

	 	(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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 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 

  

					
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 General Indemnities 
  

	15.1	Indemnity By Datec PNG LTD 

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

	 	(a)	Datec’s breach of; 

  

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

  

	 	(ii)	its obligations with respect to BSP Confidential Information 

  

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

  

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

  

	 	(i)	Datec, 

  

	 	(A)	engaging a contractor; or 

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(e)	any Claim arising from: 

  

	 	(i)	the Acquired Assets or 

  

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

  

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

  

	15.2	Enforcement Of Indemnities 

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

	16.1	Datec Indemnifies BSP 

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

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

  

	 	(b)	damage to any real or tangible property, 

  
 caused by an act or omission of Datec or its personnel 
  

	16.2	BSP Indemnifies Datec 

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

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

  

	 	(b)	damage to any real or tangible property, 

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

					
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	17.2	Terms Of Insurance 

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

	18.1	Assignment By Datec 

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

	 	(a)	is not in breach of this agreement; 

  

	 	(b)	obtains the prior written consent of the BSP 

  

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

  

	 	(d)	acknowledges that it remains bound by this agreement 

  

	18.2	Assignment By BSP 

  
 BSP may: 
  

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

  

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

  

	18.3	Governing Law 

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

	19.1	Notice 

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

	19.2	Escalation 

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

					
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	19.3	Expert Determination Or Mediation 

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

	 	(a)	Expert determination or 

  

	 	(b)	Mediation 

  
 the cost of which will be at either parties own cost 
  

	19.4	Expert Determination Criteria 

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

	19.5	Selection Of Expert Or Mediator 

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

  

	19.6	Procedure 

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

 

					
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 Disengagement 
  

	20.1	Planning 

  
 The purpose of Disengagement is: 
  

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

  

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

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

	 	(a)	as part of the Disengagement Plan: 

  

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

  

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

  

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

  

	 	(b)	the Disengagement Plan: 

  

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

  

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

  

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

  

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

  

	20.2	Implementation Of Plan 

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

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

  

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

  

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

  

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

  

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

  

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

  

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

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

  

					
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