Document:

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                                                                   EXHIBIT 10.24

                    MEDITERRANEAN CABLE MAINTENANCE AGREEMENT

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                                     MECMA 2

                    MEDITERRANEAN CABLE MAINTENANCE AGREEMENT

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

ARTICLES

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

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

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

SCHEDULES

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

B.     List of Scheduled Cables

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

D.     MECMA and alternative Depots

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

E.     Proforma Document of Accession

F.     Previous Cableship Agreements

G.     Management Committee Terms of Reference

H.     Basic Cableship Technical Criteria

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

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

J.     Sailing/repair standard duration

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1.     DEFINITIONS

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

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<S>                                          <C>

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

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

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

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

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

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

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

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

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

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

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<S>                                          <C>

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

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

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

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

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

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

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

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

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

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

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

"MECMA"                                       Means this Agreement.

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

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

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

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

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

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

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<TABLE>
<S>                                          <C>

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

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

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

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

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

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

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

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

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

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

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

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

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<TABLE>
<S>                                          <C>

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

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

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

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

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

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2.     COMING INTO FORCE OF THE AGREEMENT AND PREVIOUS AGREEMENTS

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

3.     PURPOSE OF THE AGREEMENT

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

4.     MANAGEMENT COMMITTEE

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

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

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

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

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

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

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

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

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

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

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

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

5.     PROVISION OF CABLESHIPS AND BASE PORT

       (a)    Cableships and Base Ports

              The Cableships and their respective Base Ports are as follows

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

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

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

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

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

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

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

       (b)    Cableship Programme

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

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

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

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

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

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

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

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

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

6.     USE OF CABLESHIPS

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

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

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

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

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

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

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

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

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

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

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

7.     MAINTENANCE FACILITIES ON BOARD CABLESHIPS

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

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

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

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

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

8.     USE AND OPERATION OF THE DEPOT(S)

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

9.     USE OF SPARE SUBMERSIBLE PLANT

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

10.    TRANSFER OF SPARE SUBMERSIBLE PLANT

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

<PAGE>

11.    NOTIFICATION OF CABLESHIP REQUIREMENT

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

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

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

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

<PAGE>

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

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

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

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

12.    PLANNING AND DIRECTION

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

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

<PAGE>

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

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

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

              -      full victualing and linen supply whilst on board

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

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

              -      access to suitable office accommodation and services

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

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

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

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

13.    CABLESHIPS BASE PORT

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

<PAGE>

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

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

14.    CLEARANCES

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

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

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

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

15.    PERIODS OF CABLESHIP UNAVAILABILITY

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

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

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

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

<PAGE>

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

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

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

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

16.    PREROGATIVES OF THE COMMANDER

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

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

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

<PAGE>

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

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

17.    DISTRESS AND SALVAGE

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

18.    INCLUSION AND DELETION OF ADDITIONAL PARTIES AND SCHEDULED CABLES

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

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

<PAGE>

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

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

19.    BASIS OF CABLESHIPIS COST ALLOCATION

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

              -      Standing Charges as defined in Schedule C1.

              -      Running Costs as defined in Schedule C2.

<PAGE>

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

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

              ***

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

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

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

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

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

<PAGE>

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

***

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

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

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

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

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

<PAGE>

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

20.    BILLING, ACCOUNTING AND PAYMENT ARRANGEMENTS

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

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

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

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

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

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

<PAGE>

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

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

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

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

              -      Running Costs as defined in Article 19,

              -      Transfer costs as defined in Article 10,

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

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

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

<PAGE>

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

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

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

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

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

21.    RESPONSIBILITIES FOR THE SHIPS SCHEDULES AND REPORTS

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

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

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

<PAGE>

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

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

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

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

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

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

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

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

22.    LIABILITY AND INDEMNITY

<PAGE>

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

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

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

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

23.    INSOLVENCY

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

<PAGE>

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

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

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

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

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

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

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

24.    INSURANCE

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

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

<PAGE>

25.    FORCE MAJEURE

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

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

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

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

              -      Act of God.

              -      Act of War.

              -      Act of public enemies.

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

              -      Quarantine restrictions.

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

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

              -      Riots and civil commotions.

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

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

              -      Latent defects not discoverable by due diligence.

              -      Pirates or assailing thieves.

              -      Adverse weather conditions.

<PAGE>

26.    DURATION OF AGREEMENT

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

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

27.    GOVERNING LAW

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

28.    ARBITRATION

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

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

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

29.    RELATIONSHIP OF THE PARTIES

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

30.    STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES

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

<PAGE>

31.    AMENDMENTS

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

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

32.    ASSIGNMENT

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

33.    EXECUTION AND COUNTERPART

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

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

34.    INTERPRETATION

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

35.    ENTIRE AGREEMENT

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

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

<PAGE>

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

       A.     List of Parties

              Al.    List of Parties to this Agreement - Maintenance Authorities

              A2.    List of Parties to this Agreement - Cableship Operators

       B.     List of Scheduled Cables

       C.     Cableships fixed Standing Charges allocation and Running Costs

              C1.    Standing Charges

              C2.    Running Costs

              C3.    Estimated for 1998

       E.     Proforma Document of Accession

       F.     Previous Cableship Agreements

       G.     Management Committee Terms of Reference

       H.     Basic Cableship Technical Criteria

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

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

       J.     Sailing/repair standard duration

Schedule D is not part of the Entire Agreement

36.    HEADINGS

<PAGE>

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

37.    REPRESENTATIVES AND CORRESPONDENCE

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

38.    NOTICES

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

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

39.    PUBLICITY

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

40.    INFORMATION

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

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

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

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

<PAGE>

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

41.    PERFORMANCE OF AGREEMENT

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

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

       or

              (ii)   the necessary government approvals.

42.    PERFORMANCE OF AGREEMENT

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

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

       or

              (ii)   the necessary government approvals.

43.    SEVERABILITY

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

44.    WAIVER

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

                                                                 EXHIBIT 10.25

                                       ROV
                                SERVICE AGREEMENT

This agreement (hereinafter referred to as the "Agreement"), is effective as
from the first day of January 1999,

BETWEEN

THE "SERVICE PROVIDERS":

FRANCE CABLES ET RADIO, a corporation organised and existing under the laws of
France, headquartered at 124 rue Reaumur, 75091 PARIS cedex 02, France
(hereinafter referred to as "FCR"), and FRANCE TELECOM, a company with limited
liability organised and existing under the laws of France, headquartered at 6,
Place d'Alleray, 75505 PARIS cedex 15, FRANCE (hereinafter referred to as
"FRANCE TELECOM" or "FT", and with FCR hereinafter collectively referred to as
"FT/FCR") and,

ELETTRA TLC S.P.A., a company organised and existing under the laws of Italy,
having its registered office at Viale Europa, 190-00144 Roma - ITALY
(hereinafter referred to as "ELETTRA")

                                                                    on one hand,

AND

the companies or legal entities identified in Schedule 1 of this Agreement
(hereinafter collectively referred to as "the Maintenance Authorities")

                                                              on the other hand,

<PAGE>

                                   WITNESSETH

Whereas, certain of the Maintenance Authorities having a common interest in the
efficient and effective maintenance and repair of submarine cable systems in the
Mediterranean, Red and Black Seas and desirous to obtain the support and use of
an undersea dedicated Remotely Operated Vehicle (ROV), as hereinafter defined,
to assist them in their maintenance and repair activities, had selected FT/FCR
to undertake submarine cable Repair, Maintenance and Improvement Services for
the benefit of all the Maintenance Authorities and consequently had signed a ROV
Service Agreement on 01 December 1994 (hereinafter referred to as the "Original
Agreement").

Whereas, additional parties have been entered as Maintenance Authorities under
the Original Agreement after the execution of the said agreement.

Whereas, the Maintenance Authorities, have selected an additional service
provider to undertake submarine cable Repair, Maintenance and Improvement
Services for their benefit: an Italian company named ELETTRA.

Whereas, FT/FCR and ELETTRA have agreed to provide the use of their cableships
(as hereinafter defined) with a ROV workpackage to the Maintenance Authorities,
it being understood that for FT/FCR, FCR will supply the Cable Ship and the ROV
and FRANCE TELECOM will operate them.

Whereas, all the Parties to this Agreement deem more appropriate to execute a
new agreement including clearly the modifications and the necessary additional
provisions rather than to execute an amendment to the Original Agreement,
consequently this Agreement cancels and supersedes the Original Agreement.

NOW, THEREFORE THE PARTIES IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN
EXPRESSED AGREE AS FOLLOWS:

                                        2

<PAGE>

ARTICLE 1 DEFINITIONS

In this Agreement, unless the context otherwise requires, the following
expressions shall have the meanings hereby assigned to them:

1.1. "ACCOUNTING UNITS"       means the units allocated to Maintenance
                              Authorities and to Designated Cables defined in
                              Schedule 1 for the purpose of apportioning among
                              Maintenance Authorities the ROV Costs. These units
                              are derived by using the formula contained in
                              Schedule 4 and are listed on such Schedule 4.
                              These Accounting Units may also be referred to as
                              "AU".

1.2. "ACCOUNTING UNIT COST"   Means the cost allocated to each AU determined by
                              adding the annual Standing Charges of both ROVs
                              and the Central Billing Party (as defined in
                              Article 1.5) service and by dividing this total
                              amount by the total estimated number of AU as
                              given in Schedule 4.

1.3. "ASSIGNED PORT"          Means the port from which a cable ship hosting the
                              ROV is at any given time mobilised to undertake
                              Repair or Maintenance & Improvement work under
                              this Agreement.

                              The Assigned Port of the ROV installed on the NC
                              Raymond CROZE, is La SEYNE-SUR-MER, France.

                              The Assigned Port of the ROV installed on the PC
                              TELIRI or PC CERTAMEN is CATANIA - Italy.

1.4. "CABLESHIP"              means any of the following vessels when assigned
                              to the MECMA agreement:

                              -    NC RAYMOND CROZE (or a substitute ship) owned
                                   by FCR and operated by FT

                              -    PC TELIRI or PC CERTAMEN (or a substitute
                                   ship) owned and operated by ELETTRA.

                              -    Any other cableship agreed between the
                                   Maintenance Authorities and the Service
                                   Providers to host a ROV and provide Repair
                                   and Maintenance & Improvement services under
                                   this Agreement

                                        3

<PAGE>

1.5. "CENTRAL BILLING PARTY"  means the Party designated in Article 10.2,
                              responsible for:

                              (i)  performing all billing and associated
                                   financial functions under this Agreement, and

                              (ii) preparing the ROV budget and collecting all
                                   actual financial data evidencing the ROV
                                   Costs. The Central Billing Party may also be
                                   referred to as "CBP".

1.6. "DESIGNATED CABLES"      means the submarine cables which are listed in
                              Schedule 1, as amended from time to time, on which
                              Repair and Maintenance & Improvement shall be
                              undertaken with the ROV under this Agreement.

1.7. "MAINTENANCE & IMPROVEMENT"
                              means work carried out on a Designated Cable
                              involving the use of the ROV, other than a Repair,
                              and which is deemed by the relevant Maintenance
                              Authority(ies) to be required in order to reduce
                              the susceptibility of the Designated Cable to
                              future service-affecting, faults, howsoever
                              caused.

1.8. "MANAGEMENT COMMITTEE"   means the Committee established by Article 10.1.

1.9. "MECMA"                  means the MEditerranean Cable Maintenance
                              Agreement, which came into force on 01 January
                              1993 and its 3 amendments or any agreement which
                              may replace it.

1.10."OPERATING ZONE"         means the MECMA operational zone in which the ROV
                              will operate under this Agreement.

1.11."OPERATIONAL DATE"       means the date upon which the ROV and the
                              Cableship are mobilised to provide Repair or
                              Maintenance and Improvement at the request of
                              a Maintenance Authority, as mutually agreed
                              between the Service Providers and such Maintenance
                              Authority.

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

1.13."REPAIR"                 means work carried out on a Designated Cable
                              involving the use of the ROV, at the request of a
                              Maintenance Authority in

                                       4

<PAGE>

                              order to remedy a service-affecting fault suffered
                              by the Designated Cable.

1.14."ROV"                    means either:

                              -   the remotely operated vehicle of the SCORPIO
                                  2000 series and its Ancillary Tools described
                                  in Annex 1 of Schedule 7, owned and operated
                                  by FT/FCR or,

                              -   the remotely operated vehicle of the Phoenix 2
                                  series described in Annex 2 of Schedule 7
                                  owned and operated by ELETTRA.

1.15."ROV COSTS"              means the aggregate of Running Costs and Standing
                              Charges.

1.16."RUNNING COSTS"          means costs, additional to Standing Charges which
                              are incurred for the operation of the ROV
                              specifically as a result of an individual
                              operation or operations.

1.17."SERVICE PROVIDER(S)"    means, as the case may be, either:

                              -    FT/FCR providing Cableship Raymond CROZE and
                                   ROV services or,

                              -    ELETTRA providing Cableship TELIRI or
                                   CERTAMEN and ROV services.

1.18."STANDING CHARGES"       means the costs of the ROV as detailed in Schedule
                              2.

1.19."TRAINING EXERCISES"     means the activities described in Article 3.2.4.

1.20."TRANSIT TIME"           means:

                              (a)  the period of time from departure of a
                                   Cableship from its Assigned Port until its
                                   arrival at the site of the work to be
                                   performed pursuant to Article 3.2, or

                              (b)  the period of time from the departure from
                                   the work site until its arrival in its
                                   Assigned Port, or

                              (c)  the period of time for transit between work
                                   sites, or

                              (d)  the period of time for transit between
                                   Assigned Ports.

                                       5

<PAGE>

ARTICLE 2 PURPOSE OF THIS AGREEMENT

This Agreement sets forth the terms and conditions under which each ROV will be
used to carry out Repair and Maintenance & Improvement of Designated Cables.

ARTICLE 3 OPERATIONAL USE OF ROV

3.1.     OPERATING ZONE

         Each ROV shall be assigned to and operated in the Operating Zone, under
this Agreement.

3.2.     USES OF ROV

         3.2.1. Repair of Designated Cables

                Each ROV shall be used primarily for the Repair of
                Designated Cables in order to ensure the continuity of
                service provided by such cables

         3.2.2. Maintenance & Improvement

                Subject to the requirement of the Article 3.2.1 being
                satisfied, each ROV shall be used for the Maintenance &
                Improvement of the Designated Cables on an interruptible basis.

         3.2.3. Outside Work

                Provided that the availability of the ROV to undertake
                Repair or Maintenance & Improvement of Designated Cables is
                satisfied the ROV may be used by the Service Provider or a
                Scheduled Maintenance Authority for Outside Work. The use of
                ROV for Outside Work is subject to the approval of the
                Management Committee, which approval shall not be
                unreasonably withheld or delayed. The allocation of ROV
                costs during such Outside Work is defined in Article 9 below.

                In case the Outside Work is relevant to the repair or
                maintenance & improvement of cables within the Operating
                Zone which are not Designated Cables, the operational
                conditions of intervention of the ROV, during its period of
                assignment under this Agreement, shall require the prior
                agreement of the Management Committee.

                                       6

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         3.2.4. Training Exercises

                The Service Providers shall have the opportunity to perform
                Training Exercises when the ROV is assigned to the
                Agreement. The relevant Service Provider shall provide the
                Management Committee with details of the nature, purpose,
                duration and location of the proposed Training Exercises.
                The use of ROV for Training Exercises is subject to the
                approval of the Management Committee, which approval shall
                not be unreasonably withheld or delayed. The allocation of
                ROV costs during such Training Exercises is defined in
                Article 9 below.

ARTICLE 4 ROV AVAILABILITY

4.1. The Service Provider shall use its best efforts to make the ROV
     operationally available for use at all times for work on the Designated
     Cables except in the following circumstances:

     4.1.1.     Whilst the ROV is undergoing periodic maintenance or
                refurbishment.

     4.1.2.     From the starting date of any Outside Work until its conclusion.

     4.1.3.     Whilst the ROV is unavailable by reason of Force Majeure.

     4.1.4.     Whilst the ROV is damaged to the extent that it cannot perform
                Repair or Maintenance & Improvement or it becomes a total loss
                or a constructive total loss.

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

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

ARTICLE 5 MOBILIZATION OF THE ROV

Unless otherwise agreed between the Service Provider and the Maintenance
Authority requesting the use of the ROV, the ROV shall be mobilised by the
Maintenance Authority from the Assigned Port.

                                       7

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ARTICLE 6 OPERATING PROCEDURES

6.1. The Maintenance Authority requesting the use of the ROV to undertake
     Repair or Maintenance & Improvement on a Designated Cable shall notify its
     request by telephone or facsimile to FT/FCR or to ELETTRA, as the case may
     be, at the address shown in Schedule 8.

     Where notification is given by telephone, it shall be confirmed by
     facsimile at the earliest opportunity and at the latest on the first
     working day after the notification by telephone.

     On receipt by the Service Provider of such notification by a
     Maintenance Authority, the Service Provider shall take the necessary
     action to ensure that the ROV is mobilised aboard the designated
     Cableship without undue delay, typically within 24 hours.

6.2. The Maintenance Authority requesting the use of the ROV shall be
     responsible for the engagement and costs of the cableship designated to
     host the ROV. Such engagement shall be regulated by a separate agreement
     between the cableship operator and the Maintenance Authority.
     Notwithstanding the foregoing, the Service Provider shall determine the
     suitability of any designated cableship to host the ROV and undertake
     Repair or Maintenance & Improvement with it.

6.3. When the Service Provider is notified to commence a ROV operation under
     this Agreement, the Service Provider will, within 24 hours, notify the
     Maintenance Authorities of the status of use of the ROV, as specified
     below:

     6.3.1. Upon receipt of notification by the Service Provider that the ROV is
            required to undertake an operation or if the ROV is engaged in
            Outside Work, the Service Provider shall transmit a notification of
            commencement of ROV operation or Outside Work, specifying the
            expected duration of such operation or work.

     6.3.2. After completion of the ROV operation or work, the Service Provider
            shall transmit a notification of completion of a ROV operation or
            work.

     6.3.3. Upon a ROV's change in operational status eg: standby, Repair,
            Maintenance & Improvement or Training Exercises, the Service
            Provider shall transmit a notification of the change in status of
            the ROV.

ARTICLE 7 OPERATIONAL RESPONSIBILITIES
          PLANNING AND DIRECTION

7.1. The Maintenance Authority requiring any Repair or Maintenance &
     Improvement work to be carried out may elect to be responsible for planning
     and directing such operation which

                                       8

<PAGE>

     shall be performed by the personnel of the Cableship under the control and
     supervision of the Engineer in Charge of the Service Providers. If the
     Maintenance Authority does not so elect to be responsible then the Service
     Provider shall be responsible for the planning and direction of the
     operation. In all cases the Maintenance Authority shall make available to
     the Service Provider the necessary technical information required for
     Repair or Maintenance & Improvement to be carried out to the appropriate
     Designated Cable.

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

7.2. The Maintenance Authority shall appoint one of the authorised
     representatives, should more than one be carried, as a "Senior
     Representative". The Senior Representative shall be responsible for
     planning and directing the Repair or Maintenance & Improvement operation,
     pursuant to Article 7.1 above.

ARTICLE 8 STANDING CHARGES AND RUNNING COSTS

8.1. The ROV Costs, including Standing Charges and Running Costs, relating to
     the period running from 1st January 1999 to 31st December 1999 are defined
     in Schedules 2 and 3 respectively.

8.2. For the following calendar years, the ROV costs shall be submitted to the
     Management Committee for approval at least 3 months before the beginning of
     the related year.

8.3. ROV Standing Charges shall not increase by more than *** year on year.

ARTICLE 9 ALLOCATION OF ROV COSTS

     9.1. ALLOCATION OF STANDING CHARGES

     9.1.1. The Standing Charges, adjusted as appropriate pursuant to Article
            9.3.2., shall be shared among the Maintenance Authorities for the
            Designated Cables in proportion to the Accounting Units allocated to
            them in Schedule 4.

     9.1.2. Notwithstanding the provision of Article 9.1.1 above the unit cost
            of the Accounting Units shall in any case not exceed the maximum
            amount of *** per Accounting Unit per year for the whole duration of
            this Agreement.

                                       9

<PAGE>

9.1.3. In the event that the Standing Charges are not approved by the
       Management Committee, the Standing Charges of the previous year shall
       form the basis of billing until the dispute is resolved.

9.1.4. For the purpose of calculating the Standing Charges applicable to any
       particular period of time, the estimated or actual Standing Charges
       shall be divided by 335 to give an appropriate daily rate.

9.2.   ALLOCATION OF RUNNING COSTS

9.2.1. When a Maintenance Authority requests the use of the ROV for Repair or
       Maintenance & Improvement of a Designated Cable, all Running Costs for
       the period of such work including those for Transit Time and, if
       applicable, mobilisation aboard the designated Cableship and
       demobilisation, shall be borne by the Maintenance Authority(ies)
       responsible for the Designated Cable under Repair or Maintenance &
       Improvement.

9.2.2. Where a Cableship carrying the ROV undertakes a series of ROV
       operations without returning to its Assigned Port, the ROV Running
       Costs for Transit Time between two or more operations shall be
       allocated between the Maintenance Authorities concerned according to
       the following procedure.

       Time spent in transit before the work starts on the first ROV
       operation, time spent in transit between the end of each ROV operation
       and the start of the next, and time spent in transit from the end of
       the last in the series of ROV operations to the arrival of the
       Cableship at its Assigned Port is aggregated to arrive at total
       Transit Time. Running Costs for Transit Time are allocated to each ROV
       operation in proportion to the distance to be covered by the Cableship
       to carry out each stand alone operation.

9.3.   ALLOCATION OF ROV COSTS FOR EACH CATEGORY OF USE

       9.3.1. Repair, Maintenance & Improvement of Designated Cables

       For the period of such work, Standing Charges shall be apportioned
       according to Article 9.1, and Running Costs, including those for
       Transit Time, shall be allocated according to Article 9.2.

       9.3.2. Outside Work

       When the ROV shall be used to carry out Outside Work, for the period
       of such work including Transit Time and if applicable, mobilisation
       aboard the designated

                                       10

<PAGE>

       Cableship and demobilisation, Standing Charges and Running Costs shall
       not be charged to this Agreement.

       9.3.3. Periods of non-availability

       When the ROV is damaged to the extent that it cannot perform Repair or
       Maintenance & Improvement the ROV Standing Charges for periods in
       excess of 90 days shall not be charged to this Agreement in accordance
       with Article 4.1.4.

9.3.4. Training Exercises

       For the period of such work, Standing Charges shall be apportioned
       according to Article 9.1, while Running Costs, including those for
       Transit Time, shall not be charged to this Agreement.

ARTICLE 10 MANAGEMENT COMMITTEE AND CENTRAL BILLING PARTY

10.1.  MANAGEMENT COMMITTEE

       10.1.1. Organisation:

               The Maintenance Authorities and the Service Providers shall
               form a Management Committee in which each party shall be
               represented by a single representative. A representative may
               designate an alternate to participate in a Management
               Committee meeting.

       10.1.2. Functions:

               The Management Committee shall have the following functions:

               (a)      to amend this Agreement with the unanimous approval of
                        the Parties,

               (b)      to review and approve the annual ROV Budgetary estimates
                        and the final cost of the Accounting Unit,

               (c)      to review the management of all activities required by
                        this Agreement,

               (d)      to approve the use of the ROV for Outside Works,

               (e)      to approve the charges associated with the CBP function.

                                       11

<PAGE>

       10.1.3. Procedures:

               A Party shall be elected to serve as Chairman of the
               Management Committee for a term of twelve months by simple
               majority of the present members of the Management Committee.

               Meetings shall normally be held once a year unless decided
               otherwise by the Management Committee. They will be held on
               the call of the Chairman or of at least two representatives
               of the Parties. At least a 30 days advance notice of each
               meeting shall be given with a copy of the draft agenda. In
               cases of emergency, such notice period may be reduced.

               The quorum for any meeting shall consist of a number of
               members representing at least 75 % of the total Accounting
               Units according to Schedule 1.

               All decisions of the Management Committee shall be subject
               in the first instance to consultation among its members who
               shall endeavour to make decisions by unanimous consent. In
               the event it fails to reach unanimous consent, it shall make
               decisions by simple majority votes. Each member shall have a
               number of voting rights equal to its number of Accounting
               Units as set forth in Schedule 1.

10.2.  CENTRAL BILLING PARTY:

       10.2.1. FCR shall act as Central Billing Party under this Agreement.

       10.2.2. The Central Billing Party shall be responsible for the
               preparation and submission of ROV annual budget, submission of
               billing, accounting and settlement of all amounts due from the
               Maintenance Authorities under this Agreement.

       10.2.3. At least once a year the Central Billing Party shall submit a
               financial report and accounts to the Management Committee
               describing and summarising its activities during the year
               concerned.

       10.2.4. The CBP costs are 120 000 (one hundred and twenty thousand)
               French Francs per year for the duration of the Agreement. This
               amount may be revised annually from the 4th year.

               The CBP costs shall be submitted to the Management Committee
               for approval at least 3 months before the beginning of the
               related year.

               The CBP costs shall not increase by more than 5% year on year.

                                       12

<PAGE>

ARTICLE 11 INVOICING PROCEDURE AND ARRANGEMENTS

11.1. Invoices showing the amounts due from the Maintenance Authorities for
      their respective shares of the ROV Costs for each quarter shall be sent to
      them by the Central Billing Party on or before the 15th day of the month
      before the start of each quarter. Such invoices shall be based on the
      actual Running Costs incurred and on the approved estimated Accounting
      Unit cost and shall include:

                              (a)    Standing Charges based on the estimated
                                     Accounting Unit cost,

                              (b)    Running Costs as incurred quarterly,

                              (c)    interest on invoices not paid when due,
                                     and,

                              (d)    Central Billing Charges in accordance with
                                     Article 11.6.

11.2. On or before the first working day of the last month preceding each
      quarter, the Service Providers shall advise the Central Billing Party as
      to the details of Standing Charges (including retrospective adjustments)
      and Running Costs. Running Costs details shall be included in the bills
      next due to be rendered to Maintenance Authorities.

      Unless otherwise agreed between the Service Providers and the Central
      Billing Party, such details shall be advised in French Francs (FRF).

11.3. Invoices shall be denominated and payable in French Francs (FRF), unless
      otherwise agreed between the Maintenance Authorities and the Central
      Billing Party.

11.4. Invoices shall be payable by the last working day of the second month of
      the quarter to which they relate, or if the issue of an invoice is
      delayed, seventy days from the date of issue, whichever is the later.

      Invoices not paid by the due date will incur a quarterly compounded
      interest charge at a rate of one hundred and twenty five (125%) percent
      of the PIBOR for sixty (60) days applicable on the first working day
      following the date by which payment is due, which rate will be applied
      throughout the period during which the payment is overdue.

      PIBOR is the Paris Inter bank Offer Rate for French Francs as published
      in "Les Echos".

11.5. On the first working day of the third month of each quarter, the Central
      Billing Party shall remit to or settle with the Service Providers, in
      French Francs (FRF), the amounts notified by it under Article 11.2.

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<PAGE>

11.6. The Central Billing Party shall charge the costs associated with the
      performance of the Central Billing function. The charges shall be included
      in the Accounting Unit cost.

11.7. If an invoice for a Designated Cable remains unpaid for 180 days after the
      due date, the other Maintenance Authorities shall reimburse the Central
      Billing Party a proportional share of the unpaid invoice, including a
      proportional share of the interests incurred. The amounts paid by such
      Maintenance Authorities shall be in proportion to their Accounting Units.

11.8. Nothing contained in this Article shall release the defaulting Maintenance
      Authority from its obligations under this Agreement. The defaulting
      Maintenance Authority will continue to be billed its share of all ROV
      Costs in proportion to the Accounting Units allocated to it. If the
      defaulting Maintenance Authority fails to pay any bill within 365 days of
      its due date, the Service Provider shall be released from any obligation
      to undertake work for that Maintenance Authority. At such time, Central
      Billing Party shall prepare and issue a revised Schedule 1 which will
      exclude the defaulting Maintenance Authority. The defaulting Maintenance
      Authority will continue to be excluded from Schedule 1 until all
      outstanding invoices, including applicable interest, have been paid in
      full.

11.9. In the event that a Maintenance Authority for a Designated Cable has
      failed to pay a bill within 180 days of the due date, and that Designated
      Cable has more than one Maintenance Authority, the Central Billing Party
      shall notify such other Maintenance Authority(ies) for that cable of such
      defaults for non-payment. Notwithstanding Article 11.7, a Maintenance
      Authority for a Designated Cable having more than one Maintenance
      Authority shall have the option, at any time within 365 days of the due
      date of a bill, to pay any unpaid bill including any applicable interests
      of another Maintenance Authority for that cable, and upon such payment,
      the defaulting Maintenance Authority shall no longer be deemed to be in
      default for non-payment of such bill and the cable involved shall not be
      excluded from Schedule 1.

11.10. Upon receipt by the Central Billing Party from the defaulting Maintenance
      Authority or from another Maintenance Authority for a Designated Cable
      having more than one Maintenance Authority of any amount reimbursed by the
      other Maintenance Authority(ies) in accordance with Article 11.7, any such
      amounts shall be distributed to the other Maintenance Authorities in the
      same proportions as those Maintenance Authorities reimbursed the Central
      Billing Party under Article 11.7.

ARTICLE 12 ROV COSTS ADJUSTMENT

As soon as possible and not more than 6 months after the end of each year, the
Management Committee shall approve a final cost of the AU based on the total
Standing Charges in accordance with Article 10, and the actual number of AU
according to Schedule 4 for a given financial year.

                                       14

<PAGE>

Such adjustment shall be reflected to Maintenance Authorities through the next
quarterly settlement, or if near the expiry date of this Agreement, in a final
invoice.

ARTICLE 13 LIABILITY AND INDEMNITY

13.1. Each of FCR, FRANCE TELECOM and ELETTRA shall be liable for all direct
      damages to persons or property arising in the discharge of its obligations
      under this Agreement to the extent that such damages have resulted from
      the intentional or negligent acts or omissions of FCR, FRANCE TELECOM or
      ELETTRA, its Agents or Employees. FCR, FRANCE TELECOM or ELETTRA shall
      indemnify and hold harmless the Maintenance Authority concerned against
      all claims, actions, demands, or judgements for such direct damages.

13.2. Each Maintenance Authority shall be liable for all direct damages to
      persons or property arising in the discharge of its obligations under this
      Agreement to the extent that such damages have resulted from the
      intentional or negligent acts or omissions of the Maintenance Authority,
      its Agents or Employees. Such Maintenance Authority shall indemnify and
      hold harmless FCR, FRANCE TELECOM or ELETTRA, as appropriate, against all
      claims, actions, demands or judgements for such direct damages.

13.3. Each of FCR, FRANCE TELECOM, or ELETTRA shall be liable for injury or
      damages to persons or property sustained by its Employees or Agents in the
      course of their employment or agency to the extent that such injury or
      damages are not caused by the negligence or intentional acts or omissions
      of a Maintenance Authority and to that extent will indemnify and hold
      harmless the Maintenance Authorities against all claims, actions, demands,
      or judgement for damages sustained by employees or Agents of FCR, FRANCE
      TELECOM or ELETTRA except to the extent that such claims, actions, demands
      and judgements arise out of the negligence or intentional acts of a
      Maintenance Authority.

13.4. The Central Billing Party shall exercise due care, diligence and
      promptness in the discharge of its duties and the Parties jointly shall
      indemnify and hold harmless the Central Billing Party against any claims,
      actions, demands or judgements arising out of the Central Billing Party's
      performance, purported performance or nonperformance of its function under
      this Agreement, except to the extent that such claim, actions, demands or
      judgements arise out of the negligence or intentional acts or omissions of
      the Central Billing Party.

13.5. Except as stated in Articles 13.1., 13.2., 13.3. and 13.4., no party shall
      be liable for any other damages suffered by any Party nor shall any Party
      be required to indemnify or hold harmless any other Party against claims
      made by any person or entity against any Party for damages arising from
      the acts or omissions of any other Party in the discharge of their
      respective obligations under this Agreement.

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<PAGE>

ARTICLE 14 RELATIONSHIP AMONG THE PARTIES

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

ARTICLE 15 AMENDMENTS TO AGREEMENT

15.1. This Agreement and any of the provisions hereof may be altered or added to
      only by an agreement in writing, signed by a duly authorised person on
      behalf of each of the Parties after approval of the Management Committee
      on a unanimous basis.

15.2. The inclusion of additional Maintenance Authority(ies) into this Agreement
      is governed by the provision of Article 16 hereafter.

ARTICLE 16 INCLUSION OF ADDITIONAL MAINTENANCE
           AUTHORITY(IES) AND DESIGNATED CABLES

16.1. Where any entity assumes the maintenance responsibility for any cable
      system, or part thereof within the Operating Zone, and if that entity is
      not a Patty to this Agreement then that entity may request to be admitted
      as a Maintenance Authority under this Agreement. Upon such request, the
      signature of the Chairman of the Management Committee on the document of
      accession, as set forth in Schedule 5, witnessing the admission of the new
      Party shall have the effect of binding all the other Parties as each
      itself had signed such document and the Chairman of the Management
      Committee shall then transmit a copy of the document to all the Parties.
      At the same time the cable system concerned, or part thereof, shall be
      entered into Schedule 1 as a Designated Cable.

16.2. When a Maintenance Authority being a Party to this Agreement assumes
      responsibility for any cable system, or part thereof, within the Operating
      Zone, which is not a Designated Cable, and if that Maintenance Authority
      wishes such cable system, or part thereof, to become a Designated Cable,
      it shall be entered into Schedule 1 and hence become a Designated Cable
      for the balance of the term of this Agreement.

16.3. In case of inclusion of additional Maintenance Authorities and Designated
      Cables, the other appropriate Schedules of this Agreement shall be amended
      accordingly.

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ARTICLE 17 ASSIGNMENT OR TRANSFER

During the continuance of this Agreement, no Party shall, without the written
consent of the other Parties, sell, assign, transfer or dispose of its rights or
obligations under this Agreement, in whole or in part, except to a legal
successor or subsidiary of such Party or corporation controlling, or under the
same control as, such Party.

Nothing contained in this Agreement shall restrict the right of the Service
Provider to lease equipment subcontract or employ such personnel or agents as it
deems appropriate to fulfil its obligations hereunder.

ARTICLE 18 TERM OF THIS AGREEMENT

This Agreement shall come into force as from the 1st January 1999 and shall
terminate the 31 December 2001.

The Agreement may be renewed by the Parties. At least one year before the date
of such expiry, the Parties shall decide on such a possible renewal and on the
terms and conditions of this renewal. This renewal will be subject to a written
agreement amongst the Parties. The Parties will decide either to amend this
Agreement or to execute a new agreement.

ARTICLE 19 WITHDRAWAL

19.1. If a Maintenance Authority wishes to withdraw from this Agreement, it
      shall serve at least one year notice in writing to the other Parties of
      its intention to withdraw from this Agreement.

19.2. As soon as practicable and in any event not more than three (3) months
      after the serving of any such notice of withdrawal, the other Parties will
      decide if this Agreement should continue in force without the withdrawing
      Party or if this Agreement will be terminated upon the effective date of
      such withdrawal.

19.3. In the event that the non-withdrawing Parties agree that this Agreement
      shall continue in force without the withdrawing Party and prior to the
      effective date of such withdrawal, the non-withdrawing Parties shall
      forthwith make appropriate amendments to the Schedules to this Agreement
      and it shall continue to be effective as provided in Article 17. Should
      such an agreement not be reached, the Agreement shall terminate upon the
      first effective date of any notice of withdrawal served in accordance with
      rticle 19.1.

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ARTICLE 20 FORCE MAJEURE

20.1. No Party shall be liable to the others for any failure to carry out its
      obligations or delay in performance under this Agreement due to an event
      of Force Majeure such as war, civil war, sabotage, piracy, fire,
      epidemics, break down in government or public order, seizure by judicial
      procedure, strike or lockout, perils of the seas, accident of navigation
      or any other circumstance cause or reason beyond its reasonable control.

20.2. The time for performance of the obligations under this Agreement shall be
      extended by a reasonable period in the event of such Force Majeure. The
      Party suffering from Force Majeure may terminate its participation in this
      Agreement after giving reasonable notice in the event Force Majeure has
      not ceased 3 months after its occurrence.

ARTICLE 21 AGREEMENT BINDING ON SUCCESSORS

This Agreement shall be binding on the Parties, their respective successors, and
permitted assigns.

ARTICLE 22 INSOLVENCY

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

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

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

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

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

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

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

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

ARTICLE 23 INSURANCE

(a)      Each Service Provider respectively shall be responsible for obtaining
         its necessary insurance coverage.

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

ARTICLE 24 GOVERNING LAW

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

ARTICLE 25 ARBITRATION

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

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

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

ARTICLE 26 EXECUTION AND COUNTERPART

This Agreement shall be executed in 8 counterparts in the English language and
each counterpart when delivered shall be considered an original. New Maintenance
Authorities shall be added to this Agreement by means of a Document of Accession
as set forth in Schedule 5 and the Document of Accession shall for each such
addition be executed in two counterparts in the English language and certified
copies shall be delivered to all the Parties.

ARTICLE 27 INTERPRETATION

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

ARTICLE 28 ENTIRE AGREEMENT

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

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

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

Schedule 1          Maintenance Authorities and Designated Cables

Schedule 2          Standing Charges

Schedule 3          Running Costs Estimate

Schedule 4          Accounting Units Calculation and Billing Schedule

Schedule 5          Document of Accession to the ROV Service Agreement

                                       20

<PAGE>

Schedule 6          Request for inclusion of a Cable system in the ROV Service
                    Agreement

Schedule 7          ROV description

                    Annex 1:  Scorpio 2000
                    Annex 2:  Phoenix II

Schedule 8          Representatives of the Service Providers - Mailing Addresses
                    and Contacts for Maintenance Purposes

ARTICLE 29 HEADINGS

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

ARTICLE 30 REPRESENTATIVES AND CORRESPONDENCE

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

ARTICLE 31 NOTICES

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

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

ARTICLE 32 PUBLICITY

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

                                       21

<PAGE>

ARTICLE 33 CONFIDENTIAL INFORMATION

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

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

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

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

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

ARTICLE 34 PERFORMANCE OF AGREEMENT

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

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

         or

         (ii)       the necessary government approvals.

ARTICLE 35 SEVERABILITY

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

                                       22

<PAGE>

ARTICLE 36 WAIVER

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

                                       23

<PAGE>

TESTIMONIUM

In witness whereof the parties hereto have executed this Agreement the day and
year here above written.

FOR AND ON BEHALF OF                ELETTRA ITALY
  /s/ Name of Signatory                               16/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                FLAG
  /s/ Name of Signatory                               15/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                FRANCE CABLE RADIO FRANCE
   /s/ A. Suard                                       15/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                FRANCE TELECOM FRANCE
  /s/ J. Genoux                                       19/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                SEAMEWE 1
  /s/ J. Genoux                                       19/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                SEAMEWE 2
  /s/ J. Genoux                                       19/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                SOCIETE DES TELECOMMUNICATIONS
                                    INTERNATIONALES DE DJIBOUTI (S.T.I.D),
                                    REPUBLICQUE DE DJIBOUTI

  /s/ Name of Signatory                               17/3/99
______________________________________________  DATE ______________________

FOR AND ON BEHALF OF                TELECOM ITALIA, ITALY
  /s/ Name of Signatory

______________________________________________  DATE ______________________

                                       24

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