Document:

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                       INDEFEASIBLE RIGHT OF USE AGREEMENT

THIS AGREEMENT ("Agreement"), dated as of the ______ day of October 1999, is
among FLAG ATLANTIC LIMITED, a company organized under the laws of Bermuda and
having its principal office at The Emporium Building, 69 Front Street, 4th
Floor, Hamilton, Bermuda, FLAG ATLANTIC USA LIMITED, a company organized under
the laws of Delaware, USA and having its principal office at 570 Lexington
Avenue, 38th Floor, New York, NY 10022, USA, (FLAG ATLANTIC LIMITED AND FLAG
ATLANTIC USA LIMITED being hereinafter jointly and severally referred to as
"FA-1") and TELEGLOBE USA INC. ("Purchaser"), a corporation organized under the
laws of Delaware, USA, and having its principal office at 11480 Commerce Park
Drive, Reston, Virginia 20191, USA.

                                   WITNESSETH:

WHEREAS, FA-1 and its Affiliates are constructing and will directly and/or
indirectly own, operate and maintain a fiberoptic cable system as more fully
described in Schedule 1 (the "System"); and

WHEREAS, the System is currently scheduled to be commercially available in
stages with the initial stage, as more particularly described in Schedule 1
("Initial Stage"), currently scheduled to be commercially available on or about
30 March 2001 ("Scheduled Initial RFS Date") and with the final stage, as more
particularly described in Schedule 1 ("Final Stage"), currently scheduled to be
commercially available on or about 30 June 2001 ("Scheduled Final RFS Date");
and

WHEREAS, Purchaser desires to acquire from FA-1, and FA-1 is willing to provide
to Purchaser (i) an indefeasible and exclusive right of use ("IRU") in the
derivable capacity from a fiber pair on the subsea portion of the System as set
out in Part A of Schedule 2 (the "Submarine IRU") and (ii) an IRU (except as
otherwise specifically provided in clause 2.8 of this Agreement) in a dark fiber
pair on the backhaul portion of the System as set out in Part B of Schedule 2
(the "Terrestrial IRU"); and

WHEREAS, FA-1 intends to convey to Purchaser the Submarine IRU and the
Terrestrial IRU in two steps, an initial IRU to be granted after Initial RFS
Date for the Initial Stage of the System (the "Initial IRU") and a second IRU to
be granted after Final RFS Date in the remaining portion of the System (the
"Final IRU") (the Initial IRU and the Final IRU being referred to collectively
as the "System IRU"); and

WHEREAS, FLAG Atlantic Limited and Purchaser are entering into a certain
collocation and maintenance agreement concurrently herewith; and

WHEREAS, FA-1 and Purchaser (the "Parties") desire to define the terms and
conditions under which the System IRU will be acquired by Purchaser.

NOW, THEREFORE, the Parties hereby agree as follows:

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1.       DEFINITIONS

1.1      "ACKNOWLEDGEMENT" shall have the meaning set forth in clause 2.4.

1.2      "AFFILIATE" shall mean any other entity that controls, is controlled by
         or is under common control with an entity.

1.3      "ALCATEL" shall mean Alcatel Submarine Networks and, where applicable,
         certain of its Affiliates.

1.4      "BIS TESTS" shall have the meaning set forth in clause 2.5.

1.5      "DARK FIBER" means individual strands of optical fiber in the System
         provided by FA-1 to Purchaser without electronics or optronics and
         which is not "lit" or activated.

1.6      "FA-1 FINANCIAL CLOSURE" shall have the meaning set forth in clause
         24.3.

1.7      "FINAL CLOSING" shall have the meaning set forth in clause 3.1.3.

1.8      "FINAL CONFIRMATION" shall have the meaning set forth in clause 2.5.2.

1.9      "FINAL RFS DATE" shall have the meaning set forth in clause 2.5.

1.10     "FINANCING AGREEMENT" shall mean the definitive project financing
         agreement for the funding of the construction of the System as amended
         or supplemented from time to time, obligating the financial
         institutions party thereto to make loans for the construction of the
         System (subject to satisfaction of conditions precedent).

1.11     "INDEMNITY EVENT" shall have the meaning set forth in clause 14.3.1.

1.12     "INITIAL CLOSING" shall have the meaning set forth in clause 3.1.2.

1.13     "INITIAL CONFIRMATION" shall have the meaning set forth in clause
         2.5.2.

1.14     "INITIAL PAYMENT" shall have the meaning set forth in clause 3.1.

1.15     "INITIAL RFS DATE" shall have the meaning set forth in clause 2.5.

1.16     "INTELLECTUAL PROPERTY" shall have the meaning set forth in clause
         13.2.

1.17     "PROPOSAL" shall have the meaning set forth in clause 8.4.

1.18     "PURCHASE PRICE" shall have the meaning set forth in clause 3.1.

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1.19     "SUPPLY CONTRACT" shall mean that certain agreement dated 20 September
         1999 between FLAG Atlantic Limited and certain of its subsidiaries and
         Alcatel for the construction of the subsea portions of the System
         (including related electronics), as amended from time to time.

1.20     "SYSTEM LIFE" shall mean the period of time between the Initial RFS
         Date and the date the System is decommissioned in accordance with
         clause 9.

1.21     "TAX REDUCTION" shall have the meaning set forth in clause 4.3.4.

1.22     "TERRESTRIAL FIBER LEASE" shall have the meaning set forth in clause
         2.8.

1.23     "WITHHOLDING TAXES" shall mean any taxes, duties or charges to be borne
         by Purchaser pursuant to clause 4.3.1.

2.       PURCHASE AND GRANT OF SYSTEM IRU

2.1      PURCHASE AND GRANT. FA-1 hereby grants to Purchaser, and Purchaser
         hereby accepts such grant, on the occurrence of the Initial Closing and
         the Final Closing for the System Life the Initial IRU and the Final
         IRU, respectively, subject to the terms and conditions of this
         Agreement.

2.2      USE OF SYSTEM IRU. Notwithstanding anything in this Agreement to the
         contrary, following the grant Purchaser may resell, assign, transfer or
         otherwise use the System IRU for any lawful purpose. Notwithstanding
         any resale, assignment or transfer, Purchaser remains liable for its
         obligations under this Agreement. FA-1 agrees and acknowledges that
         from the date of grant under clause 2.1, it shall have no right to use
         the Initial IRU or the Final IRU, as applicable, during the System
         Life.

2.3      PROPERTY INTEREST.

2.3.1    ***

2.3.2    ***

2.4      ***

2.5      TESTING.

2.5.1    ***

2.5.2    ***

2.6      ***

2.7      COLLOCATION AND MAINTENANCE AGREEMENT. Purchaser and FLAG Atlantic
         Limited are entering into a collocation and maintenance agreement
         concurrently herewith.

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2.8      TERRESTRIAL FIBER LEASES.

         2.8.1    In the event that (i) after using commercially reasonable
                  efforts, FA-1 does not have the underlying rights to grant an
                  IRU on portions of the Terrestrial IRU located in France,
                  England and between France and England, and/or (ii) if any
                  jurisdiction in which the System is located does not currently
                  recognize or does not recognize in the future the conveyance
                  of telecommunications facilities on an IRU basis, and/or (iii)
                  FA-1 chooses not to obtain an IRU on the portion of the
                  Terrestrial IRU located in England, then as to such portions
                  of the System IRU or such jurisdiction(s) only, this Agreement
                  shall be considered an agreement for a lease of the capacity
                  on the relevant portions of the Terrestrial IRU ("Terrestrial
                  Fiber Lease"). The term of the Terrestrial Fiber Lease shall
                  be from the grant of the Initial IRU for the System Life. All
                  amounts owed under this Agreement shall be paid as provided in
                  this Agreement and Purchaser shall not be required to make any
                  additional payments as a result of the above-described change
                  in status of the rights granted under this Agreement.
                  Notwithstanding the foregoing, the Terrestrial Fiber Lease
                  shall provide Purchaser with all of the same rights and
                  privileges contained in this Agreement as the rest of the
                  System IRU except for the nature of its interest.

         2.8.2    In the event that this Agreement is to be treated as a
                  Terrestrial Fiber Lease for any portion of the System IRU,
                  then as to such portion only, the terms "purchase,"
                  "Purchaser," and any variations thereon shall mean "lease,"
                  "Lessee," or the appropriate variation thereof, and the terms
                  "indefeasible and exclusive right of use" and "IRU" shall mean
                  "Lease." Any other terms and conditions of this Agreement also
                  shall be deemed modified only to the extent necessary to be
                  consistent with the grant of a lease to the Purchaser. All
                  other terms and conditions of this Agreement shall remain
                  unchanged and fully valid and enforceable.

         2.8.3    Notwithstanding the provisions of clauses 2.8.1 and 2.8.2, it
                  is the intent of the Parties that the Purchaser be granted an
                  IRU or the next highest rights with regard to use of the
                  System IRU. To the extent that (i) FA-1 obtains the ability to
                  grant an IRU on a portion of the System IRU previously
                  conveyed as a Terrestrial Fiber Lease pursuant to clause
                  2.8.1(i) and (ii) any jurisdiction(s) recognizes the
                  conveyance of telecommunications facilities on an IRU basis at
                  any time during the term of the Agreement, then, the rights
                  and interest granted in connection with the relevant portion
                  of the System IRU shall be an IRU, and the terms of this
                  Agreement relating to the lease of capacity shall be of no
                  force or effect as to such portion of the System IRU.

2.9      ***

2.10     ***

3.       CONSIDERATION FOR GRANT OF SYSTEM IRU AND CLOSING OF IRU PURCHASES

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3.1      PURCHASE PRICE. In consideration of the grants of the Initial IRU and
         Final IRU, Purchaser agrees to pay to FA-1 an aggregate purchase price
         of *** (the "Purchase Price") as follows:

         3.1.1    INITIAL PAYMENT. Purchaser shall pay to FA-1 *** of the
                  Purchase Price (the "Initial Payment") pursuant to an invoice
                  delivered by FA-1 after the satisfaction of each of the
                  following items:

                  ***

                  ***

         3.1.2    INITIAL CLOSING. Purchaser shall pay to FA-1 *** of the
                  Purchase Price (the "Initial Closing") pursuant to an invoice
                  delivered by FA-1 and receipt by Purchaser from FA-1 of a
                  certificate dated as of a recent date as to the following:

                  ***

         3.1.3    FINAL CLOSING. Purchaser shall pay to FA-1 the remaining ***
                  of the Purchase Price (the "Final Closing") pursuant to an
                  invoice delivered by FA-1 and receipt by Purchaser from FA-1
                  of a certificate dated as of a recent date as to the
                  following:

                  ***

4.       PAYMENTS

4.1      INVOICES. FA-1 shall render to Purchaser invoices for all amounts
         payable pursuant to this Agreement. All invoices for the Purchase Price
         shall be due and payable within 30 days after delivery to Purchaser.
         All other invoices shall be due and payable within 45 days after
         delivery to Purchaser.

4.2      DEFAULT INTEREST. Any amount payable pursuant to this Agreement which
         is not paid when due shall accrue interest as follows at the annual
         rate of *** above the U.S. Dollar LIBOR for one month in each case as
         quoted in THE WALL STREET JOURNAL on the first business day of the
         month in which the payment is due. All such default interest shall
         accrue from the day following the date payment of the relevant amount
         was due until it is paid in full and shall accrue both before and after
         judgement. Such interest shall be payable on demand.

4.3      WITHHOLDING

         4.3.1    All amounts payable by Purchaser pursuant hereto shall be paid
                  in full in U.S. dollars (or such other currency as FA-1 may
                  designate) by wire transfer free and clear of all bank or
                  transfer charges to such account(s) as FA-1 may by notice to
                  Purchaser designate without reduction for any deduction or
                  withholding for or on account of any tax, duty or other charge
                  of whatever nature imposed by any taxing authority. ***
                  Purchaser shall make the

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                  required deduction or withholding, shall pay the amount so
                  deducted or withheld to the relevant governmental authority
                  and shall promptly provide FA-1 with evidence of such payment.

         4.3.2    FA-1 and Purchaser will work together in good faith and use
                  their respective reasonable commercial efforts to minimize or
                  eliminate Withholding Taxes within the legal and/or
                  administrative framework of the relevant country's (or
                  subdivision thereof) tax authorities, including, without
                  limitation, applying at Purchaser's expense for Withholding
                  Tax waivers from such relevant tax authorities.

         4.3.3    Notwithstanding clause 4.3.2, should Purchaser have to
                  withhold Withholding Taxes by virtue of the laws of any
                  country (or subdivision thereof), FA-1 and Purchaser will at
                  Purchaser's expense work together in good faith and use their
                  reasonable commercial efforts to claim a refund of such
                  Withholding Taxes from the relevant tax authority(ies).

         4.3.4    ***

         4.3.5    ***

4.4      Purchaser's obligation to pay the Purchase Price and other amounts that
         have become due and payable pursuant hereto shall not be subject to any
         set-off, counterclaim, deduction, defense or other right which
         Purchaser may have against FA-1 or any other party, provided that
         nothing in this clause shall prevent in any way Purchaser from
         otherwise enforcing any of its rights against FA-1.

4.5      Prior to FA-1 Financial Closure Purchaser shall deliver to FA-1 such
         security for payment of the Purchase Price as is set forth in Schedule
         3.

5.       TAXES

5.1      TAXES. Save as the context requires or as otherwise stated herein all
         references to payments made in this Agreement are references to such
         payments exclusive of all sales and use taxes, gross turnover taxes,
         value added taxes, or other similar turnover or sales based taxes,
         excise taxes, duties, fees, charges, levies, surcharges to recover the
         cost of universal service contributions, or similar liabilities (other
         than the general income taxes of FA-1) imposed by any authority,
         government or government agency in connection with or as a result of or
         in respect of the supply for which the payment is or is deemed to be
         consideration (collectively "taxes"). Subject to clause 5.2, where
         applicable such taxes shall be added to the invoice and shall be paid
         to FA-1 at the same time as the relevant invoice is settled in
         accordance with clause 3.

5.2      VAT. Subject to clause 4.3, in the event that value added tax in the UK
         or France is considered to be applicable, FA-1 shall notify Purchaser
         to this effect prior to the issuance of the relevant VAT invoice and
         both Parties shall work together in good faith to restructure the
         arrangements to reduce the impact of VAT on Purchaser, where legally
         possible, but such that there is no adverse cashflow

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         impact for FA-1. Notwithstanding these discussions, invoices (excluding
         the VAT) shall be issued and be payable in accordance with clauses 3
         and 4.1.

5.3      RATES. Purchaser shall be responsible for all rates and similar
         property based taxes appropriately assessed and arising directly or
         indirectly from Purchaser's interest in the System IRU and exercise of
         its rights in connection with the System IRU.

6.       DEFAULT AND TERMINATION

         6.1.1    In the event that Purchaser shall have failed to pay any
                  amount payable by Purchaser pursuant hereto for more than ***
                  days after its due date, then Purchaser shall not be entitled
                  to activate any additional capacity within the System IRU or
                  to effect any upgrade pursuant to clause 8 until Purchaser has
                  paid in full all amounts overdue together with applicable
                  default interest. If such failure continues for a further ***
                  days, FA-1 shall be entitled to refrain from performing any
                  services for Purchaser required by this Agreement or the
                  collocation and maintenance agreement referred to in clause
                  2.7, deny Purchaser the right of access to co-located spaces
                  (except for the purpose of maintaining its existing services
                  to its customers), and refuse to carry out any additional
                  break-outs along the route of the Dark Fiber on which
                  Purchaser has its Terrestrial IRU until Purchaser has paid in
                  full all undisputed amounts overdue together with applicable
                  default interest.

         6.1.2    FA-1 shall be entitled to terminate this Agreement without
                  liability to Purchaser if either the Initial Payment or the
                  payment constituting the Initial Closing is not made within
                  *** days of its due date. FA-1 shall be entitled to terminate
                  Purchaser's right to purchase the Final IRU if the payment
                  constituting the Final Closing is not made within *** days of
                  its due date.

6.2      Initial RFS Date.

         6.2.1    If the Initial Confirmation has not been delivered to
                  Purchaser within *** months and 10 days after the Scheduled
                  Initial RFS Date, whether due to a force majeure event or
                  otherwise, Purchaser shall have the right to immediately
                  terminate its obligation to purchase the System IRU upon
                  written notice of termination delivered to FA-1. In the event
                  Purchaser has not exercised this right of termination, FA-1
                  may notify Purchaser of the revised expected Initial RFS ***.
                  Purchaser shall have *** days from receipt of this notice to
                  notify FA-1 that it wishes to terminate its obligation to
                  purchase the System IRU or that it accepts the delay to the
                  revised expected Initial RFS Date (and failure by Purchaser to
                  provide a timely notice shall be deemed acceptance of the
                  delay). If the Initial Confirmation is not delivered to
                  Purchaser within 10 days after the revised expected Initial
                  RFS Date the above procedure will be repeated until the
                  earlier of the actual delivery of the Initial Confirmation to
                  Purchaser and Purchaser's termination of its obligation to
                  purchase the System IRU.

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         6.2.2    If Purchaser has exercised its right to terminate its
                  obligation to purchase the System IRU and the Initial RFS Date
                  actually occurs prior to the date *** months after the
                  Scheduled Initial RFS Date, Purchaser shall be entitled within
                  six months from the date that FA-1 delivers the Initial
                  Confirmation to notify FA-1 that it wishes to acquire capacity
                  on the FLAG Atlantic-1 System (of which the System would have
                  been a part) in the amount of the Initial Payment of the
                  Purchase Price, the amount of the capacity being determined on
                  the basis of the then prevailing rate for comparable capacity
                  on the FLAG Atlantic-1 System at the time of such delivery of
                  the Initial Confirmation. In such case, this Agreement shall
                  be amended by the Parties to reflect the different nature of
                  the capacity being acquired and the different rights and
                  obligations of the Parties as a consequence thereof.

         6.2.3    If the Initial RFS Date has not occurred within *** months
                  after the Scheduled Initial RFS Date, Purchaser may by 30 days
                  notice terminate this Agreement ***. Purchaser shall have no
                  obligation to make any further payments of the Purchase Price
                  under this Agreement following a termination.

6.3      FINAL RFS DATE. If the Final Confirmation has not been delivered to
         Purchaser within the later of *** months and 10 days after the
         Scheduled Final RFS Date and *** months and 10 days after the Initial
         RFS Date, whether due to a force majeure event or otherwise, Purchaser
         shall have the right to immediately terminate its obligation to
         purchase the Final IRU without further liability to pay the portion of
         the Purchase Price applicable to the Final IRU upon written notice
         delivered to FA-1. In the event Purchaser has not exercised this right
         of termination of its obligation to purchase the Final IRU, FA-1 may
         notify Purchaser of the revised expected Final RFS Date ***. Purchaser
         shall have *** days from receipt of this notice to notify FA-1 that it
         wishes to terminate its obligation to purchase the Final IRU or that it
         accepts the delay to the revised expected Final RFS Date (and failure
         by Purchaser to provide a timely notice shall be deemed acceptance of
         the delay). If the Final Confirmation is not delivered to Purchaser
         within 10 days after the revised expected Final RFS Date the above
         procedure will be repeated until the earlier of the actual delivery of
         the Final Confirmation and Purchaser's termination of its obligation to
         purchase the Final IRU.

6.4      Except as provided herein, Purchaser shall have no right to terminate
         or cancel this Agreement or its obligation to purchase the System IRU
         for any reason whatsoever.

7.       OPERATION

7.1      Purchaser shall conduct all operations and use of the System IRU in a
         manner which does not interrupt, impair or interfere with the
         operations of the System or the use thereof by FA-1 or any other
         purchaser or user of optical fibers or capacity in the System. If,
         after notification by FA-1, Purchaser does not take immediate
         corrective action to comply with its obligations under this clause 7.1,
         FA-1 may take reasonable action required to protect the System,
         including but not limited to the interruption of Purchaser's use of the
         System IRU and installation of protective equipment. Purchaser shall,
         within 15 days of receipt of an invoice, reimburse FA-1 for its total
         reasonable direct costs properly incurred *** for any protective
         measures reasonably required by FA-1 to be installed on the System
         resulting from the use of the System IRU in violation of this clause.

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7.2      ***

8.       SYSTEM ENHANCEMENTS AND UPGRADES

8.1      FA-1 reserves the right to upgrade the amount of the capacity of the
         System and to make any enhancements to the System from time to time.
         FA-1 shall use reasonable efforts to minimize the interruption,
         interference or impairment of the System caused by the implementation
         of any such enhancement or upgrade and shall indemnify Purchaser for
         any damage or interruption to the System IRU as a result of FA-1's
         failure to use such reasonable efforts.

8.2      FA-1 INITIATED UPGRADES. FA-1 will notify Purchaser of any planned
         upgrade of, or enhancement to, the System. Such notice shall set forth
         the costs of such upgrade or enhancement, based on its pricing
         agreement with or proposal from its suppliers. If Purchaser wishes to
         participate in such upgrade or enhancement for the purposes of
         upgrading or enhancing the Submarine IRU it shall notify FA-1 within 30
         days of receiving notice from FA-1. If Purchaser agrees to participate
         in the upgrade or enhancement, the upgrade or enhancement will then be
         treated as FA-1 project managing the upgrade or enhancement, pursuant
         to clause 8.4. If Purchaser elects not to participate or fails to
         timely respond to the notice, FA-1 shall be entitled to proceed with
         the upgrade or enhancement without participation by Purchaser.

8.3      PURCHASER INITIATED UPGRADES. Purchaser shall be entitled at its own
         cost at any time to upgrade the capacity on the Submarine IRU,
         including upgrading the Submarine IRU so that it is equipped with the
         ability to carry greater than 400 Gbps of traffic when this becomes
         possible, provided that such upgrades are carried out in consultation
         with FA-1 and at a time mutually agreed by the Parties (which agreement
         will not be unreasonably withheld or delayed). *** FA-1 agrees to use
         reasonable efforts to coordinate with the third party supplier.
         Purchaser shall indemnify FA-1 for any damage or interruption to the
         System as a result of the upgrades.

8.4      FA-1 PROJECT MANAGED UPGRADES. Purchaser may at any time request FA-1
         to project manage any upgrade of the Submarine IRU provided that each
         upgrade shall be a minimum of 40 Gbps on each segment being upgraded.
         Upon FA-1 receiving such request FA-1 will, within 60 days, subject to
         receiving from Purchaser the information required, submit to Purchaser
         a proposal for the upgrade ("Proposal"). The Proposal will identify
         third party costs and a completion timeline for the upgrade. Purchaser
         will notify FA-1 within 30 days of receiving the Proposal as to whether
         it accepts or rejects the Proposal.***

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8.5      TERRESTRIAL IRU UPGRADES. Purchaser shall be entitled at its own cost
         at any time to upgrade the Terrestrial IRU (including any portion
         covered by a Terrestrial Fiber Lease) provided that such upgrades are
         carried out in consultation with FA-1 and at a time, not later than 30
         days after the date Purchaser wishes to do the work, mutually agreed by
         the Parties (which agreement will not be unreasonably withheld nor
         delayed).

9.       SYSTEM DECOMMISSIONING

         The System shall be decommissioned at such time, no earlier than 15
         years and no later than 25 years from the Initial RFS Date, as either
         FA-1 or the holders of three quarters of the then activated capacity on
         the System determine that the System is technically obsolete or has
         reached the end of its useful economic life. There shall be no
         compensation payable to Purchaser whether Purchaser voted for or
         against decommissioning. FA-1 shall where possible notify Purchaser if
         the System or any material portion thereof is to be decommissioned at
         least 12 months prior to such decommissioning (or by such later date as
         may be possible if 12 months notice is not possible). This provision is
         without prejudice to the rights of FA-1 to decommission the System
         without any liability to Purchaser whatsoever in the event of a force
         majeure event which makes it impossible to maintain the business
         efficacy of the System.

10.      REPRESENTATIONS, WARRANTIES AND COVENANTS

10.1     Purchaser represents, warrants and covenants to FA-1 as follows:

         10.1.1   Purchaser is duly established and in good standing under the
                  laws of Delaware, USA and has full power and authority to
                  enter into this Agreement.

         10.1.2   This Agreement constitutes the legal, valid and binding
                  obligation of Purchaser, enforceable against Purchaser in
                  accordance with its terms.

         10.1.3   Purchaser has obtained or will obtain all necessary consents,
                  licenses, permits and other approvals, both governmental and
                  private, as may be necessary to permit Purchaser to perform
                  its obligations under this Agreement and to acquire and use
                  the System IRU.

         10.1.4   Purchaser shall perform its obligations under this Agreement
                  and use the System IRU in a manner consistent with applicable
                  law, and shall not use, or knowingly permit the System IRU to
                  be used, for any illegal purpose or in any other unlawful
                  manner.

10.2     FLAG Atlantic Limited and FLAG Atlantic USA Limited each represents,
         warrants and covenants to Purchaser as follows:

         10.2.1   It is duly established and in good standing under the laws of
                  the country of its incorporation and has full power and
                  authority to enter into this Agreement.

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         10.2.2   This Agreement constitutes its legal, valid and binding
                  obligation enforceable against it in accordance with its
                  terms.

         10.2.3   It is qualified to do business in all jurisdictions where such
                  qualification is required by applicable law, and where the
                  failure to be so qualified reasonably could be expected to
                  have a material adverse effect on FA-1's ability to perform
                  its obligations under this Agreement.

         10.2.4   ***

         10.2.5   The execution and performance of this Agreement by FA-1 will
                  not result in a breach of any agreement FA-1 may have with
                  third parties or any applicable law, which reasonably could be
                  expected to have a material adverse effect on its ability to
                  perform its obligations under this Agreement.

         10.2.6   There are no pending or, to its knowledge, threatened claims,
                  actions, suits, audits, investigations or proceedings by or
                  against it which reasonably could be expected to have a
                  material adverse effect on its ability to perform its
                  obligations under this Agreement.

         10.2.7   FA-1 shall perform its obligations under this Agreement and
                  use the System in a manner consistent with applicable law, and
                  shall not use, or knowingly permit the System to be used, for
                  any illegal purpose or in any other unlawful manner in each
                  case to the extent any failure to so act would have a material
                  adverse effect on the System IRU.

         10.2.8   The Terrestrial IRU will be designed and implemented in
                  accordance with Schedule 2.

         10.2.9   FLAG Atlantic Limited and FLAG Atlantic USA Limited each
                  undertakes to use reasonable commercial efforts to obtain all
                  material consents, approvals, licenses, permits, both
                  governmental and private, as are necessary to permit it to
                  perform its obligations under this Agreement.

         10.2.10  ***

10.3     Except as provided herein, FA-1 disclaims, and Purchaser waives, all
         representations and warranties regarding the System IRU, including any
         warranty of merchantability or fitness for a particular use, and in
         particular, without limiting the foregoing FA-1 does not warrant that
         the System IRU will be uninterrupted or error free or that the System
         IRU will meet Purchaser's requirements for the equipment to be deployed
         by Purchaser in connection with the System IRU or services to be
         offered by Purchaser utilizing this equipment.

11.      FORCE MAJEURE

         No failure or omission by any Party to carry out or observe any of the
         terms and conditions of this Agreement (other than any payment
         obligation) which is not a result of the negligence or willful
         misconduct of that Party shall give rise to any claim against such
         Party or be deemed a breach of

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         this Agreement if such failure or omission arises from an act of God,
         or any other circumstance or act of government commonly known as "force
         majeure" which event was not within the reasonable control of, or
         reasonably preventable by, such Party. In the event of a force majeure
         occurrence, the Party claiming the occurrence shall, within 60 days
         thereof, notify the other Parties hereto of the existence of the event
         and its expected consequences on the System or the performance of its
         obligations hereunder.

12.      CONFIDENTIALITY

         The provisions of this Agreement and any non-public information,
         written or oral, with respect to this Agreement ("Confidential
         Information") will be kept confidential and shall not be disclosed, in
         whole or in part, to any person other than Affiliates, officers,
         directors, employees, agents or representatives of a Party
         (collectively, "Representatives") who need to know such Confidential
         Information for the purpose of negotiating, executing and implementing
         this Agreement. Each party agrees to inform each of its Representatives
         of the non-public nature of the Confidential Information and to direct
         such persons to treat such Confidential Information in accordance with
         the terms of this clause 12. Nothing herein shall prevent a party from
         disclosing Confidential Information (i) upon the order of any court or
         administrative agency, (ii) upon the request or demand of, or pursuant
         to any regulation of, any regulatory agency or authority, (iii) to the
         extent reasonably required in connection with the exercise of any
         remedy hereunder, (iv) to a Party's legal counsel, financial or other
         advisors or independent auditors, (v) in the case of FA-1, to existing
         or prospective lenders under the Financing Agreement or their
         Affiliates, and (vi) to any actual or proposed assignee, transferee or
         lessee of all or part of its rights hereunder provided that such actual
         or proposed assignee agrees in writing to be bound by the provisions of
         this clause 12. Notwithstanding the foregoing, in the event that
         Purchaser intends to disclose any Confidential Information pursuant to
         clause (i) or (ii) of the preceding sentence, Purchaser agrees to (a)
         provide FA-1 with prompt notice before such disclosure in order that
         FA-1 may attempt to obtain a protective order or other assurance that
         confidential treatment will be accorded such Confidential Information
         and (b) cooperate with FA-1 in attempting to obtain such order or
         assurance. The foregoing shall not restrict either Party from publicly
         announcing that it has entered in this Agreement with the Parties
         provided that (x) the initial announcement by either Party containing
         the other Party's name shall be subject to such other Party's consent,
         and (y) in the case of an announcement by Purchaser, such announcement
         shall provide no details as to the System other than the name of the
         System except for details (i) that have already been disclosed publicly
         by FA-1, (ii) relating to the amount of capacity Purchaser has
         activated on the System or (iii) otherwise relating to matters
         particular to Purchaser's use of the System IRU. Notwithstanding the
         foregoing, no such public announcement shall be permitted to include
         any details of this Agreement.

13.      NO LICENSE

                                       12
<PAGE>

13.1     Nothing in this Agreement shall or shall be deemed to give rise to any
         right of either Party to use any Intellectual Property of the other
         Parties except as may be needed to utilize the System IRU or to
         maintain the System.

13.2     "Intellectual Property" means any and all patents, trade marks, rights
         in designs, copyrights, and topography rights, (whether registered or
         not and any applications to register or rights to apply for
         registration of any of the foregoing), rights in inventions, know-how,
         trade secrets and other confidential information, rights in databases
         and all other intellectual property rights of a similar or
         corresponding character which may now or in the future subsist in any
         part of the world, together with the goodwill relating thereto.

14.      INDEMNIFICATION

14.1     ***

14.2     Subject to the provisions of clauses 14.3 and 21, Purchaser hereby
         releases and agrees to indemnify, defend, protect and hold harmless
         FA-1, its employees, officers, directors, agents, shareholders and
         affiliates, from and against, and assumes liability for:

         14.2.1   Any injury, loss or damage to any person, tangible property or
                  facilities of any third person or entity other than FA-1 or an
                  Affiliate of FA-1 or any officers, employees, affiliates,
                  agents, contractors, licensees, invitees or vendors of FA-1 or
                  any such Affiliate (including reasonable attorneys' fees and
                  costs) to the extent arising out of or resulting from the acts
                  or omissions, negligent or otherwise, of Purchaser, its
                  officers, employees, affiliates, agents, contractors,
                  licensees, invitees or vendors constituting a breach by
                  Purchaser in the performance of its obligations hereunder or
                  arising out of or resulting from the breach of any
                  representation or warranty made by Purchaser under this
                  Agreement.

         14.2.2   Any claims, liabilities or damages arising out of any failure
                  by Purchaser to comply with any regulation, rule, statute or
                  court order of any local, state, national or European Union
                  governmental agency, court or body in connection with its use
                  of the System IRU hereunder.

         14.2.3   Any claims, liabilities or damages arising out of any
                  interference with or infringement of the rights of any third
                  party as a result of Purchaser's use of the System IRU not in
                  accordance with the provisions of this Agreement.

14.3     A Party's obligation to indemnify under this clause 14 is subject to
         the indemnified Party:

         14.3.1   promptly notifying the indemnifier of an event giving rise to
                  the indemnification ("Indemnity Event")

         14.3.2   giving the indemnifier the sole conduct of the defense to any
                  claim or action in respect of such Indemnity Event and not at
                  any time admitting liability or otherwise attempting to settle

                                       13
<PAGE>

                  or compromise except upon the express instructions of the
                  indemnifier (provided that the indemnifier shall not admit
                  liability nor wrong doing by the indemnified party without the
                  consent of the indemnified party); and

         14.3.3   acting in accordance with the reasonable instructions of the
                  indemnifier and giving to the indemnifier such assistance as
                  it shall reasonably require in respect of the conduct of the
                  said defense including without prejudice to the generality of
                  the foregoing the filing of all pleadings and other court
                  process and the provision of all relevant documents.

14.4     The Parties hereby expressly recognize and agree that each Party's
         obligation to indemnify, defend, protect and save the other harmless is
         not a material obligation to the continuing performance of the other
         Parties' obligations, if any, hereunder. In the event that a Party
         shall fail for any reason to so indemnify, the injured party hereby
         expressly recognizes that its sole remedy in such event shall be the
         right to bring an action against the other Party for its damages as a
         result of the other Party's failure to indemnify, defend, protect and
         save harmless. These obligations shall survive the expiration or
         termination of this Agreement.

14.5     To the extent not precluded by any other agreement, nothing contained
         herein shall operate as a limitation on the right of any Party hereto
         to bring an action for damages against any third party *** based on any
         acts or omissions of such third party as such acts or omissions may
         affect the construction, operation or use of the System IRU or the
         System.

14.6     The indemnification provided for in this clause 14 shall survive the
         expiration or termination of this Agreement until the expiration of all
         statutes of limitation applicable to any claims, liabilities or damages
         otherwise subject to this clause 14.

15.      ASSIGNMENT

15.1     This Agreement and all the provisions hereof shall be binding upon and
         inure to the benefit of the Parties hereto and their respective
         successors and permitted assigns; provided that, except for the
         assignment of FA-1's rights under this Agreement to one or more
         financial institutions and/or export credit agencies as collateral
         security for financing provided to FA-1 or in connection with a sale of
         receivables by FA-1 and the assignment by such financial institutions
         (and their assignees) of the rights and obligations under this
         Agreement to any other persons following exercise of any rights or
         remedies on such collateral security, neither this Agreement nor any of
         the rights, interest or obligations hereunder shall be assigned or
         transferred by any of the Parties hereto without the prior written
         consent of the other Parties, and any attempted assignment or transfer
         in violation of this clause shall be void. Notwithstanding the
         foregoing, Purchaser may assign its rights under this Agreement upon
         notice to FA-1 but without FA-1's prior consent, to Purchaser's
         Affiliates, provided:

         15.1.1   the Affiliate agrees to be bound by all terms and conditions
                  of this Agreement; and

                                       14
<PAGE>

         15.1.2   the Affiliate is authorized or permitted under the laws and
                  regulations of its country to acquire and use the transferred
                  portion of the System IRU.

15.2     Notwithstanding clause 15.1, FLAG Atlantic Limited and FLAG Atlantic
         USA Limited may allocate their rights and obligations under this 0
         Agreement between themselves and their affiliates, provided that they
         remain jointly and severally liable for each of their obligations
         hereunder.

15.3     FLAG Atlantic Limited and FLAG Atlantic USA Limited may use
         subcontractors or agents to fulfil their obligations hereunder.

16.      ENTIRE AGREEMENT

         This Agreement (including the Schedules and Annexes hereto) constitutes
         the whole agreement between the Parties and supersedes any previous
         agreements, arrangements or understandings between them relating to the
         subject matter hereof. Each of the Parties acknowledges that it is not
         relying on any statements, warranties or representations given or made
         by any of them relating to the subject matter hereof, save as expressly
         set out in this Agreement.

17.      VARIATION

         No variation or amendment to this Agreement shall be effective unless
         in writing signed by authorized representatives of each of the Parties.

18.      WAIVER

18.1     Failure by a Party at any time to enforce any of the provisions of this
         Agreement shall neither be construed as a waiver of any rights or
         remedies hereunder nor in any way affect the validity of this Agreement
         or any part of it and no waiver of a breach of this Agreement shall
         constitute a waiver of any subsequent breach.

18.2     Termination of this Agreement shall not operate as a waiver of any
         breach by a Party of any of the provisions hereof and shall be without
         prejudice to any rights or remedies of a Party which may arise as a
         consequence of such breach or which may have accrued hereunder up to
         the date of such termination.

18.3     No waiver of a breach of this Agreement shall be effective unless given
         in writing.

19.      INVALIDITY

         If any provision of this Agreement is or becomes (whether pursuant to
         any judgment or otherwise) invalid, illegal or unenforceable in any
         respect under the law of any applicable jurisdiction:

                  (a)      the validity, legality and enforceability under the
                           law of that jurisdiction of any other provision; and

                                       15
<PAGE>

                  (b)      the validity, legality and enforceability under the
                           law of any other jurisdiction of that or any other
                           provision,

                  shall not be affected or impaired in any way thereby.

20.      NOTICE

20.1     Any notice, request, demand or other communication required or
         permitted hereunder shall be sufficiently given if in writing in
         English and delivered by hand or sent by prepaid registered or
         certified mail (airmail if international), by facsimile or by prepaid
         international courier service of international reputation addressed to
         the appropriate Party at the following address or to such address as
         such Party may from time to time designate:

      If to Purchaser:

      Teleglobe USA Inc.
      11480 Commerce Park Drive
      Reston, Virginia 20191

      Attention: General Counsel
      Tel:  (703) 755-2000
      Fax:  (703) 755-2694

      If to FA-1:

      FLAG Atlantic Limited
      The Emporium Building
      69 Front Street
      4th Floor
      Hamilton HM 12
      Bermuda

      Attention: Co-chairmen
      Tel:  +1-441-296-0909
      Fax: +1-441-296-0938

      With a copy to:

      FLAG Telecom Limited
      103 Mount Street - 3rd Floor

                                       16
<PAGE>

      London  W1Y  5HE
      U.K.

      Attention:  General Counsel
      Tel:  +44-171-317-0800
      Fax: +44-171-317-0808

      With a copy to:

      GTS Carrier Services
      Terhulpsesteenweg 6A
      1560 Hoeilaart
      Belgium

      Attention: Legal Director
      Tel:  +322-658-5200
      Fax: +322-658-5100

20.2     Purchaser acknowledges that all communications in connection with this
         Agreement shall be between Purchaser and FLAG Atlantic Limited. For
         this purpose, FLAG Atlantic USA Limited hereby appoints FLAG Atlantic
         Limited as its agent to receive and send all communications in
         connection with this Agreement.

20.3     Any notice, request, demand or other communication given or made
         pursuant to this clause shall be deemed to have been received (i) in
         the case of hand delivery or courier, on the date of receipt as
         evidenced by a receipt of delivery from the recipient, (ii) in the case
         of mail delivery, on the date which is seven days after the mailing
         thereof and (iii) in the case of transmission by facsimile, on the date
         of transmission with confirmed answer back. Each such communication
         sent by facsimile shall be promptly confirmed by notice in writing
         hand-delivered or sent by courier, mail or air mail as provided herein,
         but failure to send such a confirmation shall not affect the validity
         of such communication.

21.      LIABILITY

21.1     Except as otherwise specifically set forth in this Agreement, FA-1
         shall not be liable to Purchaser for any loss or damage sustained by
         reason of any delay in completion, failure or breakdown of the
         facilities constituting the System or any interruption of service,
         regardless of the cause of such delay in completion, failure or
         breakdown, and regardless of how long it shall last.

21.2     If the Initial Confirmation has not been delivered to Purchaser within
         *** after the Scheduled Initial RFS Date Purchaser shall be entitled to
         terminate its obligation to purchase the System IRU pursuant to clause
         6.2 ***. Clause 6.2 and the foregoing shall be the limit of Purchaser's
         right for delays to the Initial RFS Date.

21.3     ***

                                       17
<PAGE>

21.4     Subject to clause 21.5, FA-1 shall have the right to relocate any
         portion of the System, including any of the facilities used or required
         in providing the System IRU, and shall have the right to proceed with
         such relocation, including, but not limited to, the right to determine
         the extent of, the timing of, and methods to be used for such
         relocation and Purchaser shall reimburse FA-1 for its proportionate
         share of the cost of such relocation; ***.

21.5     If FA-1 is required to relocate any portion of the System, including
         any of the facilities used or required in providing the System IRU,
         because it has not secured the right to use that portion of the System
         for the System Life, FA-1 shall have the right to proceed with such
         relocation, including, but not limited to, the right to determine the
         extent of, the timing of, and methods to be used for such relocation;
         ***.

21.6     Notwithstanding any other provision in this Agreement to the contrary,
         no Party shall be liable to any other Party for any indirect, special,
         punitive or consequential damages (including, but not limited to, any
         loss of profit or business or claim from any customer for loss of
         services) arising out of this Agreement or from any breach of any of
         the terms and conditions of this Agreement.

21.7     Any financier of the System, at its election, shall have a right to
         cure any breach by FLAG Atlantic Limited (or, if applicable, an
         affiliate thereof) under this Agreement, provided however, that such
         financier shall not assume any liabilities of FLAG Atlantic Limited
         under this Agreement.

22.      COUNTERPARTS

         This Agreement may be executed in counterparts. Any single counterpart
         or set of counterparts signed, in either case, by all the Parties
         hereto shall constitute a full and original agreement for all purposes.

23.      WAIVER OF IMMUNITY

         The Parties acknowledge that this Agreement is commercial in nature,
         and the Parties expressly and irrevocably waive any claim or right
         which they may have to immunity (whether sovereign immunity or
         otherwise) for themselves or with respect to any of their assets in
         connection with an arbitration, arbitral award or other proceedings to
         enforce this Agreement, including, without limitation, immunity from
         service of process, immunity of any of their assets from pre- or
         post-judgment attachment or execution and immunity from the
         jurisdiction of any court or arbitral tribunal.

24.      FA-1 FINANCIAL CLOSURE

24.1     The obligation of the Purchaser to pay the Purchase Price (or any
         installment thereof) and the obligation of FA-1 to provide the System
         IRU are conditional upon the occurrence of FA-1 Financial Closure.

                                       18
<PAGE>

24.2     If FA-1 Financial Closure has not occurred by 31 October 1999, then
         this Agreement shall terminate (with the exception of clauses 12, 14,
         21, 23 and 25 which shall survive termination).

24.3     For the purposes of this Agreement, "FA-1 Financial Closure" shall be
         deemed to take place on the date when at least 66% of the costs of the
         construction of the System are covered by secured commitments of
         equity, and by commitments of debt under the executed Financing
         Agreement.

25.      GOVERNING LAW AND DISPUTE RESOLUTION

25.1     This Agreement shall be construed in accordance with New York law,
         without regard to the law of New York governing conflicts of law.

25.2     Except as otherwise provided herein, any dispute or controversy arising
         under or in connection with this Agreement shall be finally settled
         under the Rules of Arbitration of the International Chamber of Commerce
         by one arbitrator appointed in accordance with such Rules. Any such
         dispute or controversy to be settled under this clause shall be between
         Purchaser and FA-1 and Purchaser shall not have to identify whether the
         dispute or controversy is with FLAG Atlantic Limited or FLAG Atlantic
         USA Limited. The place of arbitration shall be New York. The
         arbitration shall be conducted in English. The decision and award
         resulting from such arbitration shall be final and binding on the
         Parties. Judgment upon the arbitration award may be rendered by any
         court of competent jurisdiction, or application may be made to such
         court for a judicial acceptance of the award and an order of
         enforcement. Insofar as permissible under the applicable laws, the
         Parties hereby waive all rights to object to any action for judgment or
         execution which may be brought before a court of competent jurisdiction
         on an arbitration award or on a judgment rendered thereon.

                                       19
<PAGE>

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the
date first set forth above.

FLAG ATLANTIC LIMITED

BY /s/ Name of Signatory
  --------------------------
Name:
Title:

FLAG ATLANTIC USA LIMITED

BY /s/ Name of Signatory
  --------------------------
Name:
Title:

TELEGLOBE USA INC.

BY /s/ Name of Signatory
  --------------------------
Name:
Title:<PAGE>

                                                                  Exhibit 10.22

                               THE SOUTH EAST ASIA

                                       AND

                                  INDIAN OCEAN

                           CABLE MAINTENANCE AGREEMENT

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE

<S>      <C>                                                                  <C>
1.       DEFINITIONS...........................................................6

2.       PREVIOUS AGREEMENTS..................................................10

3.       OBJECT...............................................................10

4.       MANAGEMENT COMMITTEE.................................................10

5.       PROVISION OF CABLESHIPS AND DEPOT(S).................................10

6.       USE OF CABLESHIPS....................................................12

7.       OPERATION OF THE CABLESHIPS..........................................14

8.       USE AND OPERATION OF THE DEPOT(S)....................................16

9.       USE OF SPARE SUBMERSIBLE PLANT.......................................17

10.      TRANSFER OF SPARE SUBMERSIBLE PLANT..................................18

11.      NOTIFICATION OF CABLESHIP REQUIREMENT................................18

12.      PLANNING AND DIRECTION...............................................20

13.      CABLESHIP BASE PORT..................................................20

14.      CLEARANCES...........................................................21

15.      PERIODS OF CABLESHIP UNAVAILABILITY..................................21

16.      MUTUAL SUPPORT COVENANT..............................................22

17.      PERIOD OF AGREEMENT..................................................24

18.      INCLUSION AND DELETION OF ADDITIONAL PARTIES AND SCHEDULED
         CABLES...............................................................24
</TABLE>

<PAGE>

<TABLE>
<S>      <C>                                                                  <C>
19.      BASIS OF CABLESHIP'S COST ALLOCATION.................................25

20.      BASIS OF DEPOT COST ALLOCATION.......................................28

21.      BILLING, ACCOUNTING AND SETTLEMENT ARRANGEMENTS......................29

22.      RECORDS..............................................................32

23.      LIABILITY AND INDEMNITY..............................................32

24.      INSURANCE............................................................33

25.      FORCE MAJEURE........................................................33

26.      PREROGATIVES OF THE COMMANDER........................................35

27.      DISTRESS AND SALVAGE.................................................36

28.      LEGAL INTERPRETATION.................................................36

29.      ARBITRATION..........................................................36

30.      RELATIONSHIP OF THE PARTIES..........................................37

31.      STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES.......................37

32.      AMENDMENTS...........................................................37

33.      ASSIGNMENT...........................................................37

34.      EXECUTION AND COUNTERPARTS...........................................37

35.      ENTIRE AGREEMENT.....................................................38

36.      HEADINGS.............................................................38

37.      REPRESENTATIVES AND CORRESPONDENCE...................................38

38.      NOTICES..............................................................38

39.      PUBLICITY............................................................38

40.      CONFIDENTIAL INFORMATION.............................................38
</TABLE>

<PAGE>

<TABLE>
<S>      <C>                                                                  <C>
41.      PERFORMANCE OF AGREEMENT.............................................39

42.      INSOLVENCY...........................................................39

43.      TRANSFER OF RESPONSIBILITIES.........................................40

SCHEDULES

Al.      LIST OF PARTIES TO THIS AGREEMENT - MAINTENANCE AUTHORITIES

A2.      LIST OF PARTIES TO THIS AGREEMENT - FACILITY PROVIDERS

Bl.      LIST OF SCHEDULED CABLES

B2.      CENTRAL BILLING PARTIES

C.       CABLESHIP OPERATIONAL ALLOCATION DEFINING EACH CABLESHIP'S,
         NORMAL OPERATIONAL ZONE

Dl.      CABLESHIP RUNNING COSTS

D2.      CABLESHIP FIXED STANDING CHARGE ALLOCATION

El.      DEPOT COST DERIVATION

E2.      DEPOT -- CABLE STORAGE DATA

E3.      DEPOT COST ALLOCATION TO EACH SCHEDULED CABLE

E4.      DEPOT COST ALLOCATION TO MAINTENANCE AUTHORITIES

F.       PROFORMA DOCUMENT OF ACCESSION

G.       BASIC CABLESHIP TECHNICAL CRITERIA

H.       MANAGEMENT COMMITTEE -- TERMS OF REFERENCE

I.       PREVIOUS CABLESHIP AND DEPOT AGREEMENTS

J.       DEPOT TECHNICAL CRITERIA
</TABLE>

<PAGE>

<TABLE>
<S>     <C>
K.       ALLOCATION OF COSTS OF ADDITIONAL SERVICES

L.       REPRESENTATIVES OF THE PARTIES AND MAILING ADDRESSES AND
         CONTACTS FOR FINANCIAL AND MAINTENANCE PURPOSES
</TABLE>

<PAGE>

This AGREEMENT entitled THE SOUTH EAST ASIA AND INDIAN OCEAN CABLE MAINTENANCE
AGREEMENT made between and among the Parties listed in Schedules Al and A2
hereto.

WHEREAS:

(a)      The Maintenance Authorities under various Construction and Maintenance
         Agreements are responsible for the maintenance and repair of the
         submersible plant of certain submarine telecommunications cable systems
         in the South East Asia and Indian Ocean areas.

(b)      The Maintenance Authorities wish to have made available cableships and
         storage depots for the repair and maintenance and storage of such
         submarine telecommunication cable systems.

(c)      ASEAN Cableship Private Limited a limited company having its registered
         office at 375 Tanjong Katong Road, Singapore 1543, Republic of
         Singapore and Cable and Wireless (Marine) Ltd. a limited company having
         its registered office at Mercury House, Theobalds Road, London WCI, in
         their separate capacities as Cableship Operators propose to make
         available two Cableships namely the C.S. Retriever and the C.S. Cable
         Enterprise respectively to the Maintenance Authorities for the repair
         and maintenance of such submarine telecommunications cables as are
         listed in Schedule B1 of this Agreement.

(d)      Sembawang Cable Depot Private Limited owns and operates a cable depot
         located at Sembawang Singapore and proposes to make available the Cable
         Depot to the Maintenance Authorities for the storage of spare
         submersible plant for the repair and maintenance of such submarine
         telecommunications cable systems as are listed in Schedule B1 of this
         Agreement.

NOW THEREFORE the Parties hereto covenant and agree with each other as follows:

1.       DEFINITIONS

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

         (a)      "Cableship Operator"         means either ASEAN Cableship
                                               Private Ltd. or Cable and
                                               Wireless (Marine) Ltd. or both
                                               where the context so requires.

         (b)      "Cableship"                  means any Cableship provided by
                                               a Cableship Operator under this
                                               Agreement

<PAGE>

                                               which is a vessel fully capable
                                               of and equipped as shown in
                                               Schedule G for the repair and
                                               maintenance of the Scheduled
                                               Cables, as shown in Schedule
                                               Bl, at the inception of this
                                               Agreement.

         (c)      "Chargeable Sheath Mileage"  means the sheath mileage of a
                                               Scheduled Cable adjusted in
                                               accordance with Schedule D2
                                               which unless otherwise agreed
                                               by the Management Committee is
                                               the method by which the
                                               Quarterly Net Chargeable Cost
                                               to the Maintenance Authorities
                                               is allocated.

         (d)      "Combined Manning"           means that each Cableship shall
                                               be on standby with a reduced
                                               level of officers and crew and
                                               that the Cableship Operators
                                               shall have agreed arrangements
                                               between themselves to bring the
                                               level of one or both Cableships
                                               up to a Fully Manned basis as
                                               required.

         (e)      "Depot"                      means the landbased storage
                                               facilities for Spare
                                               Submersible Plant.

         (f)      "Depot Owner"                means Sembawang Cable Depot
                                               Private Limited who currently
                                               own and operates a depot at
                                               Sembawang, Singapore and any
                                               other Depot Owner who may
                                               become Party to this Agreement
                                               in accordance with Clause 5(f)
                                               herein.

         (g)      "Facility oviders"           means any or all of the
                                               Cableship Operator(s) and Depot
                                               Owner(s) where the context so
                                               requires, as listed in Schedule
                                               A2.

         (h)      "Financial Year"             means consecutive twelve-month
                                               periods ending on the 31st of
                                               March of each year.

         (i)      "Fixed Standing Charges"     means the annual amount
                                               indicated in, or determined in
                                               accordance with Clause 19(a),
                                               19(b) and 19(c).

                                       7

<PAGE>

         (j)      "Full Manning"               means that each Cableship has a
                                               full complement of officers and
                                               crew at all times.

         (k)      "Fully Manned"               means that one or both of the
                                               two Cableships shall be brought
                                               up to a full complement of
                                               officers and crew from a
                                               Combined Manning level while on
                                               standby, or to undertake a
                                               repair and maintenance
                                               operation, or on charter.

         (l)      "LIBOR"                      means the London Interbank
                                               Offered Rate being the
                                               arithmetic mean, rounded to the
                                               nearest one-sixteenth, of the
                                               offered rates for ten million
                                               (10,000,000) United States
                                               Dollars quoted by the market of
                                               five (5) reference banks at
                                               11:00 am each working day. The
                                               banks are National Westminster,
                                               Bank of Tokyo, Deutsche Bank,
                                               Banque Nationale de Paris and
                                               Morgan Guaranty Trust.

         (m)      "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
                                               Scheduled Cable.

         (n)      "Management Committee"       means the committee formed by
                                               the Maintenance Authorities
                                               pursuant to Clause 4.

         (o)      "Normal Operational Zone"    means the area within the
                                               Operational Zone containing the
                                               Scheduled Cables for which a
                                               particular Cableship is
                                               primarily responsible, and
                                               hence normally the first
                                               choice, to effect repair and
                                               maintenance to such Scheduled
                                               Cables, as shown in Schedule C.

         (p)      "Operational Zone"           means the larger of the ocean
                                               areas bounded either by the
                                               Scheduled Cables or by the
                                               Great Circle Lines connecting
                                               Djibouti in

                                       8

<PAGE>

                                               the West, Perth in the South,
                                               Guam in the East, and Toucheng
                                               in the North.

         (q)      "Party"                      means a party to this Agreement
                                               as listed in Schedules Al and
                                               A2.

         (r)      "PIOCMA"                     means the agreement entitled
                                               "Mutual Assistance Agreement
                                               for Pacific and Indian Ocean
                                               Cable Maintenance" between the
                                               parties contained therein for
                                               mutual assistance arrangements
                                               between the maintenance zones
                                               of the Pacific Ocean and Indian
                                               Ocean regions.

         (s)      "PIOCMA Cables"              means cables under the PIOCMA
                                               for which the Maintenance
                                               Authorities have agreed that
                                               the Cableship Operators may
                                               repair and maintain in addition
                                               to the Scheduled Cables.

         (t)      "Quarterly Net Chargeable    means the quarterly amount
                  Cost"                        determined in accordance with
                                               Clause 19(d).

         (u)      "Running Costs"              means variable costs for a
                                               Cableship over and above the
                                               Fixed Standing Charge which are
                                               incurred in respect of repairs,
                                               maintenance, and other such
                                               operational circumstances as
                                               stipulated in this Agreement.

         (v)      "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 Bl.

         (w)      "Spare Submersible Plant"    means the spare submarine
                                               cable, repeaters and equalisers
                                               and other associated spare
                                               submersible parts of a
                                               Scheduled Cable.

         (x)      "Submersible Plant"          means that part of a Scheduled
                                               Cable that is between and
                                               includes the respective beach
                                               joints of the terminal
                                               countries.

                                        9

<PAGE>

         (y)      "United Kingdom RPI"         means the United Kingdom Retail
                                               Price Index which is a monthly
                                               statistic officially published
                                               by the United Kingdom
                                               Government, which indicates on
                                               a weighted average price index
                                               basis the current overall rate
                                               of United Kingdom inflation.

Under this Agreement and where the context so requires the singular shall be
taken to mean the plural and vice versa.

2.       PREVIOUS AGREEMENTS

         Prior to the effective Date of this Agreement pursuant to Clause 17
         herein certain Parties hereto had rights and obligations under various
         existing cableship and depot agreements which are listed in Schedule I
         herein (called "Previous Agreements" for the purposes of this Clause).
         It is a condition precedent to the commencement of this Agreement that
         all Parties having rights and obligations under Previous Agreements
         shall relinquish the same and that this Agreement shall supersede the
         Previous Agreements Provided Always that such termination of the
         Previous Agreements shall not in any way prejudice any rights and
         remedies which may have accrued to any Party prior to the date of
         termination of such Previous Agreements.

3.       OBJECT

         The Maintenance Authorities hereby appoint, from the date specified in
         Clause 17 herein, each Cableship Operator to provide repair and
         maintenance facilities for the Submersible Plant by means of the
         Cableships, and the Depot Owner to provide storage facilities for the
         Spare Submersible Plant by means of the Depot, as defined in the
         appropriate Schedules for each facility.

4.       MANAGEMENT COMMITTEE

         The Maintenance Authorities shall form a Management Committee
         comprising one representative from each Maintenance Authority, and such
         Management Committee shall be governed by the terms of reference
         contained in Schedule H. The Facility Providers shall attend meetings
         of the Management Committee as reasonably required to do so by any
         Maintenance Authority.

                                       10

<PAGE>

5.       PROVISION OF CABLESHIPS AND DEPOT(S)

         (a)      On and from the date specified in Clause 17 herein, the repair
                  and maintenance of the Scheduled Cables shall be carried out
                  by two Cableships, such Cableships being as specified in
                  Schedule G hereto, namely:

                  (i)      The C.S. Retriever based in Singapore; and

                  (ii)     The C.S. Cable Enterprise based in Manila.

         (b)      Spare Submersible Plant for the Scheduled Cables shall, from
                  the effective date of this Agreement, be stored at a Depot
                  provided under this Agreement located at Sembawang Singapore,
                  other than that which may be on board the Cableships.
                  Throughout the term of this Agreement Spare Submersible Plant
                  may be stored at another Depot under this Agreement as the
                  Parties may from time to time agree. Notwithstanding the
                  foregoing some Spare Submersible Plant may be stored at
                  alternative depots or locations not under this Agreement such
                  as the Guam Depot.

         (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 Operators shall carry out repairs and
                  maintenance work expeditiously and in accordance with
                  internationally accepted standards. However, if, in the
                  opinion of the Cableship Operator, a repair requires the use
                  of equipment in addition to the Cableship's normal cable
                  repairing gear, such additional equipment including but not
                  limited to diving services, support vessels and/or a Remotely
                  Controlled Submersible Vehicle (RCSV), then the Cableship
                  Operator shall use reasonable endeavours to provide, with the
                  consent of the Maintenance Authority responsible for a
                  particular operation, such additional services and equipment
                  as it deems necessary to enable it to carry out any such
                  repair in an expeditious manner. The cost of such additional
                  facilities shall be regarded as Running Costs and charged as
                  follows:

                                       11

<PAGE>

                  (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 Clause 19(g); 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 Clause 19(1).

         (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 G. Should any of the
                  Maintenance Authorities require any improvements,
                  modifications or additions to be carried out to the Cableships
                  (including modification to the Cableships to deploy an RCSV)
                  which are beyond the agreed technical criteria defined in
                  Schedule G then such modifications or improvements shall be to
                  the cost of those Maintenance Authorities and will be
                  reflected in an increase to the Fixed Standing Charge. The
                  nature and cost of such improvements and modifications and
                  associated increase to the Fixed Standing Charge 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 facilities (in
                  terms of cableships, depots and any other facilities) may be
                  added to this Agreement by agreement amongst the Parties to
                  this Agreement.

6.       USE OF CABLESHIPS

         (a)      The Cableships shall be used primarily for the repair and
                  maintenance of all the Scheduled Cables listed in Schedule Bl.

         (b)      The Scheduled Cables applicable to each Cableship's Normal
                  Operational Zone are listed in Schedule C.

         (c)      It is recognised by the Parties hereto, being parties to the
                  PIOCMA agreement, that the Cableship Operators may be
                  requested from time to time to provide assistance to cable
                  systems outside the Operational Zone. Therefore the Parties
                  hereto agree that the Cableship Operators shall be at liberty
                  to respond to requests for such assistance with the prior
                  agreement of the chairman of the Management Committee.

         (d)      The Cableship Operators shall actively seek to undertake other
                  work on a charter basis within the Operational Zone, provided
                  that within the applicable charter

                                       12

<PAGE>

                  agreement there is a provision for the Cableship to be
                  withdrawn, normally within 24 hours, so as to undertake a
                  repair of a Scheduled Cable, if so required by the Maintenance
                  Authority responsible and except as provided for in Clauses
                  6(e) and 6(f). The Cableship Operators shall advise the
                  Management Committee promptly by telex of the duration and
                  general location of such interruptable charter work.

         (e)      The Cableship Operators may undertake other charter work, on a
                  non-interruptable basis, for a period of up to three weeks
                  within the Operational Zone provided that one Cableship will
                  be available to fulfil the obligations of the Cableship
                  Operators under this Agreement. The Cableship Operators shall
                  advise the Management Committee promptly by telex of the
                  nature and duration of such non-interruptable work.

         (f)      If non-interruptable charter work within the Operational Zone
                  pursuant to Clause 6(e) is in excess of three weeks the
                  Cableship Operators shall seek the prior agreement of the
                  Management Committee. The decision of the Management Committee
                  shall be given by the chairman of the Management Committee to
                  the Cableship Operators within 36 hours upon receipt of such
                  application by the Cableship Operators to the chairman of the
                  Management Committee.

         (g)      During the term of this Agreement either or both of the
                  Cableships may only be removed from the Operational Zone for
                  Charter or PIOCMA work, with the prior agreement of the
                  Management Committee, or due to Force Majeure as defined in
                  Clause 25.

         (h)      All charter work undertaken by the Cableships shall be subject
                  to the Cableship Operator's charter terms and conditions
                  relevant to that Cableship, as may be amended by the Cableship
                  Operator from time to time, which amendments shall be agreed
                  by the Management Committee.

         (i)      The charter fees applicable to any charter under Clause 6(d),
                  6(e) and 6(f) and which, subject to Clause 6(j), the Cableship
                  Operator shall be deemed to have received from the respective
                  charterer shall comprise the following:

                  (i)      the Fixed Standing Charge calculated on a daily basis
                           in accordance with Clause 19(e)(i) which shall apply
                           for the total period from the start of any unloading
                           of Spare Submersible Plant necessary to allow the
                           charter to proceed until the return of the Cableship
                           to its base port.

                  (ii)     an additional charge which shall be determined by the
                           current market rate and agreed between the Cableship
                           Operators and the chairman of the Management
                           Committee and shall be allocated in accordance with
                           Clause 19(d)(v).

                                       13

<PAGE>

                  (iii)    a fixed charge which should be made up from the
                           Running Costs incurred if Clause 7(g) is activated
                           and the Transfer Costs incurred under Clause 20 (f),
                           and which shall be allocated in accordance with
                           Clause 19 (d)(viii).

         (j)      A Cableship Operator may undertake charter work as described
                  in this Clause at lower charter fees than that defined in
                  Clause 6(i)(i) with the prior agreement of the Management
                  Committee.

7.       OPERATION OF THE CABLESHIPS

         (a)      The Cableship Operators hereto jointly agree that the CS
                  Retriever and the CS Cable Enterprise may be operated on
                  either a Combined Manning basis or on a Full Manning basis
                  while on standby for repair and maintenance work as required
                  by the Management Committee.

         (b)      At the inception of this Agreement the Cableship Operators
                  shall operate the CS Retriever and CS Cable Enterprise on a
                  Combined Manning basis while the Cableships are on standby for
                  repair and maintenance work.

         (c)      At any time during the period of this Agreement the Management
                  Committee may request the Cableship Operators to change-over
                  from the Combined Manning arrangement to the Full Manning
                  arrangement or from the Full Manning arrangement to the
                  Combined Manning arrangement and the Cableship Operators shall
                  comply accordingly subject to:

                  (i)      the Management Committee giving a minimum notice of 6
                           months for such change-over from Combined Manning to
                           Full Manning; and

                  (ii)     the Management Committee giving a minimum notice of
                           12 months for such change-over from Full Manning to
                           Combined Manning; and

                  (iii)    a minimum duration of a manning arrangement of 2
                           years; and

                  (iv)     any Running Costs or other payments incurred in the
                           change-over to be to the cost of the Maintenance
                           Authorities and charged in accordance with Clause
                           19(h).

         (d)      Under the Full Manning arrangement each Cableship Operator
                  shall ensure that its Cableship is operated in such a manner
                  so as to be able to put to sea without undue delay and
                  normally within 24 hours of receipt of notification from the

                                       14

<PAGE>

                  appropriate Maintenance Authority that the Cableship's
                  services are required in accordance with Clause 11 and except
                  as provided for in Clause 15 and Clause 25 hereto.

         (e)      Under the Combined Manning arrangement the Cableship Operators
                  shall subject to Clause 7(f) ensure that the Cableships are
                  operated in such a manner as for the first called of the
                  Cableships to be able to put to sea without undue delay and
                  normally within 24 hours of receipt of notification from the
                  appropriate Maintenance Authority that the Cableship's
                  services are required in accordance with Clause 11 except as
                  provided for in Clause 15 and Clause 25 hereto.

         (f)      Under the Combined Manning arrangement when one Cableship is
                  already operationally engaged the Cableship Operator
                  responsible for the Cableship remaining on standby shall
                  ensure that it is operated in such a manner so as normally to
                  be able to put to sea within 2 to 3 days of receipt of
                  notification from the Maintenance Authority that the
                  Cableship's services are required in accordance with Clause 11
                  and except as provided for in Clause 15 and Clause 25. Any
                  Running Costs incurred in bringing the Cableships from a
                  standby basis to a Fully Manned basis shall be allocated to
                  the Scheduled Cables on the basis defined in Clause 19(h).

         (g)      When under the Combined Manning arrangement one Cableship is
                  operationally engaged, or is unavailable in accordance with
                  Clause 15 and Clause 25, the Management Committee may require
                  the Cableship Operator responsible for the Cableship on
                  standby to temporarily bring that Cableship up to a Fully
                  Manned level on the operational basis described in Clause 7(d)
                  within 2 to 3 days of the receipt by the Cableship Operator of
                  notice of such temporary requirement. The Running Costs
                  associated with such a temporary Fully Manned level shall be
                  charged to the Scheduled Cables on the basis defined in Clause
                  19(h). In the case of a charter or work under the PIOCMA the
                  Running Costs shall be recovered in accordance with Clause
                  6(i)(iii).

         (h)      The Cableship Operators may as considered necessary in
                  consultation with the relevant Maintenance Authority and as
                  circumstances so permit utilise additional officers and crew
                  to supplement the Fully Manned Cableship in the circumstances
                  of any anticipated long or difficult repair and maintenance
                  operations. The costs associated with such supplementing of
                  the Fully Manned Cableships shall be incurred as a Running
                  Cost and allocated to the Scheduled Cable being repaired or
                  maintained on the basis defined in Clause 19(g).

                                       15

<PAGE>

8.       USE AND OPERATION OF THE DEPOT(S)

         (a)      The Depot(s) shall be used primarily for the storage of Spare
                  Submersible Plant other than that which may be on board the
                  Cableships.

         (b)      Each Depot Owner at the outset of this Agreement individually
                  warrants, and will exercise due diligence throughout the term
                  of this Agreement to ensure that its Depot is fit for the
                  storage of Spare Submersible Plant and shall exercise due
                  diligence to maintain its Depot to ensure that it is equipped
                  with the necessary gear and staffed with suitable personnel to
                  enable the Depot Owner to fulfill its obligations under this
                  Agreement.

         (c)      Each Depot Owner shall at all times keep secure the Spare
                  Submersible Plant and ensure that its Depot is maintained so
                  as to preserve the Spare Submersible Plant, normal wear and
                  tear and obsolescence excepted, in the highest state of
                  operational readiness for use in the repair and maintenance of
                  the Submersible Plant. Each Depot Owner shall ensure adequate
                  provision and maintenance of all necessary equipment to enable
                  expeditious transfer of the Spare Submersible Plant to and
                  from a Cableship subject to the conditions of Clause 10 and
                  except as provided for in Clause 25.

         (d)      Each Depot Owner shall ensure that its Depot meets the
                  relevant technical criteria agreed between and amongst the
                  Parties and attached hereto as Schedule J.

                  Should the Maintenance Authorities require any improvements,
                  modifications or additions to be carried out to the Depot
                  which are beyond the technical criteria defined in Schedule J
                  then such modifications, improvements, or additions shall be
                  to the cost of the Maintenance Authorities and reflected in
                  the Depot Capital Charge as defined in Schedule El. The nature
                  and cost of such improvements, modifications or additions and
                  the associated increase to the Depot's costs shall be subject
                  to the prior agreement of the Management Committee and the
                  Depot Owner before such improvements, modifications or
                  additions are carried out.

         (e)      in the event of circumstances beyond the Depot Owner's control
                  forcing the closure of a Depot the Depot Owner concerned
                  shall, if so required by the Management Committee, use
                  reasonable endeavours to provide alternative storage
                  facilities for the Spare Submersible Plant stored at its Depot
                  subject at the time to the Parties reaching agreement as to
                  the necessary financial arrangements, such agreement not to be
                  unreasonably withheld.

                                       16

<PAGE>

9.       USE OF SPARE SUBMERSIBLE PLANT

         In order that repairs to the Scheduled Cables are carried out with the
         minimum of delay, any of the Spare Submersible Plant stored either on
         board 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 work Provided Always That such Submersible
         Plant is considered by the Maintenance Authorities concerned to be
         technically compatible with the Scheduled Cable to be repaired. 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)      A Maintenance Authority shall be entitled to require that its
                  Spare Submersible Plant be transferred to or from a vessel or
                  depot not provided under this Agreement, provided that the
                  said Maintenance Authority shall undertake to be absolutely
                  responsible and liable unless otherwise agreed in advance with
                  either the Depot Owner or Cableship Operator, or both, for the
                  following:

                  (i)      the berthing of any vessel so provided by the
                           Maintenance Authority together with any port dues,
                           pilotage, or any other levies and costs incurred by
                           such transfer operation, and

                  (ii)     the arrangement and payment of any labour, equipment,
                           insurance costs, and any other handling charges to
                           effect such transfer.

         (b)      In the event of a transfer of any Spare Submersible Plant to
                  or from a vessel or depot not provided under this Agreement,
                  the Cableship Operator or the Depot Owner shall make available
                  to the Maintenance Authority concerned or its duly authorised
                  servants and/or agents any equipment and manpower to operate
                  such equipment on board the Cableship or within the Depot, as
                  appropriate for effecting such transfer between the Cableship
                  or Depot and the said vessel or depot, providing such
                  equipment and manpower supplied by the Cableship Operator or
                  Depot Owner shall be under the sole control and direction of
                  the Maintenance Authority and that the Maintenance Authority
                  shall indemnify and hold harmless the Cableship Operator or
                  the Depot Owner for any injury, loss and/or damage which may
                  result from such transfer and in no event shall the Cableship
                  Operator or Depot Owner be liable for any indirect or
                  consequential loss. Notwithstanding that the Maintenance
                  Authority shall direct and control the operation, the decision
                  of the Commander of the Cableship shall be absolute in

                                       17

<PAGE>

                  carrying out or not carrying out any directions if he
                  considers that the carrying out of such directions concerning
                  the Cableship would endanger the Cableship or the lives or
                  safety of any person thereof.

11.      NOTIFICATION OF CABLESHIP REQUIREMENT

         (a)      When the Cableship Operator receives notification from a
                  Maintenance Authority that the services of the Cableship are
                  required to repair or maintain 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. In the case of a repair notification the Cableships
                  shall be put to sea as set forth in Clause 7.

         (b)      Repairs to the Scheduled Cables shall normally be effected by
                  the Cableships in accordance with Schedule C. However, if at
                  that time the relevant Cableship has already been assigned to
                  another repair operation, the second Cableship will attend to
                  the fault. In the event of the unavailability of the second
                  Cableship or of a conflict on the assignment of the Cableships
                  or on the sequence of the repair 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, including
                           under the terms of the PIOCMA, should be assigned to
                           which operation and the sequence of the operations.

                  (ii)     if no agreement is reached repairs shall be effected
                           within the Normal Operational Zone in the order of
                           notification to the relevant Cableship Operator.

                  (iii)    if a Cableship is on the repair ground and has
                           already engaged a repair, such repair should be
                           completed before assigning the Cableship to another
                           operation.

         (c)      The Cableships shall normally mutually support each other and
                  the Maintenance Authorities hereto agree that if one Cableship
                  is engaged on charter work then the second Cableship may be
                  notified by the Maintenance Authority to attend the repair in
                  the other Cableship's Normal Operational Zone thereby allowing
                  the continuation of the said charter work, Provided Always
                  That effective maintenance coverage of the Operational Zone is
                  not considered by the Maintenance Authorities to be
                  disadvantaged by the continuation of such charter work.

                                       18

<PAGE>

         (d)      If at the time the notification described in Clause 11(a) is
                  received the Cableship normally expected to repair and
                  maintain that particular Scheduled Cable is engaged in charter
                  work of the interruptable nature referred to in Clause 6(d)
                  then such charter work shall be stopped, if so required by the
                  Maintenance Authorities, in accordance with the aforesaid
                  charter agreement interruption provision upon receipt of
                  notification to enable the Cableship to be diverted to repair
                  the Scheduled Cable.

         (e)      For the purposes of notification each Cableship Operator shall
                  appoint a representative to whom notification should be sent.

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 that repair or maintenance operation
                  which shall be performed by the personnel of the Cableship
                  under the control and supervision of the Commander 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. Such
                  amendments shall be approved by the Management Committee. 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 cable repair or maintenance
                  operation. In all cases the Maintenance Authority shall make
                  available to the Cableship Operator the necessary technical
                  information required for repairs and maintenance to be carried
                  out to the appropriate Scheduled Cable.

         (b)      The Cableship Operators hereby agree that any Maintenance
                  Authority who elects to be responsible for planning and
                  directing any particular repair and maintenance work or for
                  purposes of observing the operation shall have the right to
                  have representatives on board the Cableship during the
                  relevant cable operations. The number of representatives shall
                  be subject to accommodation availability.

         (c)      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 operation, pursuant to Clause 12(a) above.

         (d)      Notwithstanding Clause 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

                                       19

<PAGE>

                  such instructions would endanger the Cableship or the lives or
                  safety of any person thereof.

13.      CABLESHIP BASE PORT

         (a)      At the inception of this Agreement the C.S. Retriever and the
                  C.S. Cable Enterprise shall be based, while on standby for
                  repair and maintenance, at the ports of Singapore and Manila
                  respectively.

         (b)      Should the Management Committee require at some stage during
                  the term of this Agreement a Cableship base port to be changed
                  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 and subject to Clause 26(a).
                  Any costs incurred as a result of the necessary change of base
                  port shall be borne by the Maintenance Authorities and
                  allocated to the Maintenance Authorities in proportion to each
                  Scheduled Cable's Chargeable Sheath Mileage in accordance with
                  Schedule D2.

14.      CLEARANCES

         (a)      The Cableship Operators shall inform themselves as to the laws
                  and regulations pertaining to the maritime waters in which
                  they are required to operate. The Maintenance Authorities will
                  assist the Cableship Operators where possible by bringing to
                  the attention of the Cableship Operators changes in
                  legislation of which they may from time to time become aware.
                  The Cableship Operators shall initiate procedures and the
                  relevant Maintenance Authorities and the Cableship Operators
                  shall jointly be responsible for obtaining all the necessary
                  clearances, permits and authorisations in the maritime waters
                  where the work is to be carried out and all other relevant
                  clearances to ensure the smooth implementation and successful
                  completion of repair and maintenance operations.

         (b)      No Party shall incur any liability to any other Party in the
                  event of clearances being delayed or refused due to reasons
                  beyond the control of any Party as defined in Clause 25.

15.      PERIODS OF CABLESHIP UNAVAILABILITY

         (a)      A Cableship will be considered temporarily unavailable for the
                  repair and maintenance of the Scheduled Cables in the
                  following circumstances:

                  (i)      when the Cableship undergoes periodic refits, or

                                       20

<PAGE>

                  (ii)     when the Cableship undergoes any modification or
                           alteration, or

                  (iii)    if at any time the Cableship is unable to function
                           due to damage or breakdown and requires a period of
                           repair, or

                  (iv)     if at any time the Cableship for reasons other than
                           as stated above or for reasons of Force Majeure as
                           defined in Clause 25 becomes unavailable other than
                           as 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 Operators 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.

         (c)      If a Cableship is damaged to such an extent as to have to
                  undergo repairs that cause the Cableship to be unavailable for
                  a period exceeding 120 days in any one instance then the Fixed
                  Standing Charge for that Cableship shall be abated for the
                  duration of the period of unavailability beyond the first 120
                  days.

16.      MUTUAL SUPPORT COVENANT

         (a)      For the purposes of this Agreement both Cableship Operators
                  mutually covenant that both the Cableships shall be mutually
                  supporting, and they shall use reasonable endeavours to ensure
                  that the Operational Zone is covered by at least one Cableship
                  and accordingly:

                  (i)      the Cableships shall undergo normal refit at
                           different times, and

                  (ii)     if one Cableship requires repairs or becomes a total
                           loss or a constructive total loss the remaining
                           Cableship shall cover the Operational Zone, where
                           practicable, on a temporary basis.

                  The Cableship Operators agree that in the fulfilment of the
                  mutual support covenant they will maintain any of the
                  Scheduled Cables within the overall Operational Zone if so
                  required by the Maintenance Authorities.

                                       21

<PAGE>

         (b)      In the event that either Cableship is unavailable for any
                  reason the Management Committee shall consider implementing
                  arrangements under the terms of the PIOCMA.

         (c)      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
                  Clause 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 Clause
                  19(h).

17.      PERIOD OF AGREEMENT

         This Agreement shall become effective on the first day of June, 1986
         and shall expire after a period of ten (10) years but may continue
         beyond that date by agreement amongst the Parties.

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 all the Parties hereto 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 F, and hence
                  upon the coming into force of such document shall be entered
                  into Schedule Al.

         (b)      Subject to the prior agreement of the Parties, when a
                  Maintenance Authority assumes responsibility for any cable
                  system, or part thereof, it shall be entered into Schedule BI
                  and hence become a Scheduled Cable; other appropriate
                  Schedules shall be amended accordingly.

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

                                       22

<PAGE>

         (d)      For the duration of this Agreement a Maintenance Authority
                  shall have the right to implement an early withdrawal of a
                  Scheduled Cable from the Agreement Provided Always That the
                  Maintenance Authority shall give a minimum of TWO YEARS NOTICE
                  of such withdrawal to the other Parties hereto and save that a
                  Maintenance Authority may not issue such a notice until this
                  Agreement has been in force for three years.

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

                  (i)      notification to the Parties of the proposed change by
                           telex.

                  (ii)     upon the expiration of thirty (30) days from the date
                           of such notification and, except in the event of any
                           Party advising any objections in writing or by telex
                           during such notice period the relevant Schedules
                           shall be amended and a Document of Accession shall be
                           executed as set forth in Schedule F. 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 Party objects in accordance with
                           Clause 18(e)(ii) above the Parties shall consult each
                           other to ascertain what action should be taken.

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

19.      BASIS OF CABLESHIP'S COST ALLOCATION

         (a)      The respective costs of each Cableship shall comprise Fixed
                  Standing Charges and Running Costs. Running Costs incurred are
                  calculated in accordance with Schedule Dl. The Fixed Standing
                  Charges for the first three Financial Years of this Agreement
                  shall be as shown below:

         ***

         (b)      At the end of the first Financial Year of this Agreement each
                  Cableship Operator shall advise the Maintenance Authorities of
                  the Fixed Standing Charge for the fourth Financial Year of the
                  Agreement. At the end of the second and each subsequent
                  Financial Year thereafter each Cableship Operator shall advise
                  the Maintenance Authorities of the Fixed Standing Charge for
                  the next unpriced

                                       23

<PAGE>

                  Financial Year, namely the third Financial Year forward, and
                  this method of Cableship pricing shall be maintained
                  throughout the term of the Agreement.

         (c)      Each successive Financial Year's Fixed Standing Charge advised
                  under Clause 19(b) shall not constitute an increase of more
                  than ***. If a Cableship Operator requires an increase to the
                  annual maintenance and refit element in the Fixed Standing
                  Charge in excess of the foregoing then the Cableship Operator
                  shall submit details of such increase for the consideration of
                  the Management Committee.

         (d)      The Quarterly Net Chargeable Cost shall be one quarter of the
                  annual Fixed Standing Charges which are abated or adjusted as
                  appropriate by any sums received or paid by the Cableship
                  Operator during the previous quarter in respect of:

                  (i)      amounts receivable by the Cableship Operator after
                           the deduction of all Running Costs incurred in
                           respect of repair and maintenance services to PIOCMA
                           Cables in accordance with Clause 6(c);

                  (ii)     the charter fees defined in Clause 6(i) (i),
                           excepting the circumstances defined in Clauses 6(j)
                           and 19(d) (vi);

                  (iii)    one half of any surplus remaining f rom the sum or
                           sums received or recovered by the respective
                           Cableship Operator in respect of any salvage or
                           assistance to other vessels given by the Cableship
                           during the course of this Agreement. Such surplus
                           shall be the total sum received less the proportion
                           due to the Commander and crew, all legal costs,
                           Running Costs, any other costs associated with the
                           salvage or assistance and, should at such time the
                           Cableship be on charter work as agreed under Clause
                           6, any share due to the charter party in the manner
                           described in the Cableship Operator's charter terms
                           and conditions,

                  (iv)     any revenue other than;

                           a)       amounts that are otherwise due under this
                                    Agreement and,

                           b)       receipts arising from insurance claims,

                                    accruing in respect of the Cableship during
                                    any period of temporary unavailability as
                                    described in Clause 15(a);

                  (v)      one half of any additional charge applied in
                           accordance with Clause 6(i)(ii);

                                       24

<PAGE>

                  (vi)     the entire charter fees, after the deduction of all
                           Running Costs incurred by the Cableship Operator,
                           accruing in respect of any period that the Cableships
                           are engaged in charter work where the Management
                           Committee has agreed in accordance with Clause 6(j)
                           to charter fees that are less than the charges
                           defined in Clause 6 (i)(i);

                  (vii)    the Fixed Standing Charge for periods in excess. of
                           120 days when a Cableship is unavailable in
                           accordance with Clause 15(c);

                  (viii)   amounts receivable from a charter in accordance with
                           Clause 6(i)(iii).

         (e)      Fixed Standing Charges applicable to periods of time in
                  respect of;

                  (i)      Clause 6(d), 6(e) and 6(f) shall be determined on a
                           daily basis by dividing the annual Fixed Standing
                           Charge of the Cableship by a figure of 335.

                  (ii)     Clause 19(d)(vii) shall be determined by dividing the
                           annual Fixed Standing Charge of the Cableship by a
                           figure of 365.

         (f)      The Quarterly Net Chargeable Cost for each Cableship shall be
                  allocated to the Maintenance Authorities in proportion to each
                  Scheduled Cable's Chargeable Sheath Mileage during the quarter
                  in accordance with Schedule D2 at all times (including repair
                  and maintenance operations);

         (g)      The Running Costs of a Cableship for the entire duration that
                  such Cableship is engaged in any repair or maintenance
                  operation on a Scheduled Cable or PIOCKA cable, including
                  passage time, shall be allocated entirely to the Scheduled
                  Cable or PIOCMA cable involved;

         (h)      Running Costs incurred in respect of Clauses 7(c), 7(f), 7(g)
                  and 16(c) shall be allocated amongst the Maintenance
                  Authorities responsible for the Scheduled Cables in proportion
                  to each Scheduled Cable's Chargeable Sheath Mileage in
                  accordance with Schedule D2 or in accordance with the
                  provisions of the PIOCMA if applicable;

         (i)      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 base port, shall be aggregated
                  and shared to the operations in proportion to the distance of
                  each operation from the Cableship's base port;

                                       25

<PAGE>

         (j)      The Running Costs of the Cableship for the entire periods when
                  engaged in charter work (including the Running Costs of
                  bringing the chartered Cableship up to a Fully Manned level
                  from a Combined Manning level) shall be borne wholly by such
                  charter work;

         (k)      The Running Costs of the Cableships for the duration of any
                  period when engaged in cable working exercises shall be
                  allocated between Scheduled Cables in proportion to their
                  Chargeable Sheath Mileage in accordance with Schedule D2.

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

         (m)      Any amounts paid by the Cableship Operator In respect of
                  services provided to a Scheduled Cable by other cableships
                  under the provisions of the PIOCMA shall be allocated and
                  billed to Maintenance Authorities by the Cableship Operator as
                  a part of and in accordance with the cost sharing and payment
                  provisions of this Agreement.

20.      BASIS OF DEPOT COST ALLOCATION

         (a)      The operational costs of the Depot shall be specified as
                  Storage Costs and Transfer Costs which are both defined in
                  Schedule El.

         (b)      Storage costs shall be allocated to Scheduled Cables in the
                  same proportion as the volume of spare cable of each Scheduled
                  Cable stored collectively in the Depot(s) and on board the
                  Cableships provided in accordance with Clause 5, to the total
                  volume of all spare cable belonging to the Scheduled Cables
                  being stored therein. Schedule E2 gives data for each type of
                  cable and Schedule E3 shows the volume of spare cable of the
                  Scheduled Cables which utilise the storage facilities of the
                  Depot and Cableships. Schedule E4 shows the derived percentage
                  allocation of the Storage Costs to be allocated to each
                  Maintenance Authority at the commencement of this Agreement.
                  Schedules E2, E3 and E4 will be revised from time to time by
                  the Depot Owner in consultation with the Cableship Operators
                  during the term of this Agreement to reflect changes in spare
                  cable storage.

         (c)      The Cableship Operators shall supply the Depot Owner(s) with
                  details of the volume of spare cable of each Scheduled Cable
                  stored on board the Cableships within 14 days of being so
                  requested by a Depot Owner.

                                       26

<PAGE>

         (d)      In the event of additional storage facilities being provided
                  in accordance with Clause 5 each Depot Owner will supply the
                  other Depot Owner with details of the volume of spare cable of
                  each Scheduled Cable stored in their respective Depot(s),
                  within 14 days of being so requested by the other Depot Owner.

         (e)      Transfer Costs shall with the exception of Clause 20(f) be
                  borne by and charged to the Maintenance Authorities for which
                  transfer work is undertaken.

         (f)      Where Transfer Costs are incurred in respect of either a
                  charter for the Cableship, or undertaking PIOCMA work pursuant
                  to Clause 6, such Transfer Costs shall be borne by the
                  Maintenance Authorities in proportion to each Scheduled
                  Cable's Chargeable Sheath Mileage as defined in Schedule D2.

21.      BILLING, ACCOUNTING AND SETTLEMENT ARRANGEMENTS

         (a)      During the quarter preceding each Financial Year each Depot
                  Owner(s) shall supply the Maintenance Authorities with an
                  estimate of the annual Storage Costs for that Financial Year.
                  These estimates shall be presented in the detailed categories
                  set out in Schedule El. Billing of Storage Costs during the
                  course of the Financial Year shall be submitted on a quarterly
                  basis and based on such estimates.

         (b)      Bills in respect of the Quarterly Net Chargeable Cost of the
                  Cableships, and the Storage Costs in respect of the Depot(s)
                  shall be submitted by each Facility Provider 15 days prior to
                  the first day of the quarter in which they apply.

         (c)      The Cableship, Operator(s) shall as necessary submit a final
                  billing after the completion of each Financial Year as soon as
                  the Quarterly Net Chargeable Costs for that Financial Year are
                  known. This final billing shall comprise the final
                  retrospective adjustments to the amounts billed in accordance
                  with Clause 19(d) and such adjustments shall be included and
                  settled as a part of the next billing submission to the
                  Maintenance Authorities.

         (d)      The Depot Owner(s) shall submit a final billing after the
                  completion of each Financial Year as soon as the annual
                  Storage Costs are known This final billing shall comprise the
                  final retrospective adjustments to the amounts billed in
                  accordance with Clause 20 and such adjustments shall be
                  included and settled as a part of the next billing submission
                  to the Maintenance Authorities.

         (e)      Bills in respect of Running Costs and Transfer Costs shall be
                  submitted on a monthly basis in arrears and include actual
                  costs as they become known.

                                       27

<PAGE>

         (f)      Schedule Bl identifies the Maintenance Authorities responsible
                  and individually liable for the payment of any amounts due
                  under this Agreement in respect of each Scheduled Cable. Bills
                  shall detail the amount payable for each Scheduled Cable and
                  for this purpose Schedules D2 (Page 2) and E3 summarise
                  respectively the total billing allocation of Cableship
                  Quarterly Net Chargeable Costs and annual Storage Charges
                  respectively to each Scheduled Cable. Schedule D2 (Page 4) and
                  Schedule E4 (Page 1) show the allocated billing of Quarterly
                  Net Chargeable Cost and Storage Charges respectively as
                  derived after application of Central Billing parties in
                  accordance with Clause 21(j).

         (g)      All bills shall be submitted and paid in the currency of issue
                  which shall be UK pounds sterling or Singapore dollars. All
                  bills shall be paid within sixty (60) days of the date of
                  receipt of such bills by the relevant Maintenance Authority or
                  the appropriate Central Billing party. In this respect, the
                  Cableship Operators and the Depot Owner(s) shall provide to
                  the relevant Maintenance Authority or Central Billing party by
                  telex, or like means of communication, advice of the date of
                  despatch of all bills being submitted under this Agreement.
                  Within ten (10) days of such advice of the date of despatch of
                  a bill, the relevant Maintenance Authority or Central Billing
                  party shall advise by telex the Party issuing the bill of its
                  receipt or non-receipt. Should the Maintenance Authority or
                  Central Billing party fail to provide such advice, the bill
                  shall be deemed to have been received on the tenth day after
                  the date of advice of despatch as above.

         (h)      The Cableship Operators and the Depot Owner respectively shall
                  be entitled to charge interest at a rate of 3 percentage
                  points per annum greater than the LIBOR effective on the date
                  of issuing of the bill for such interest for each billing
                  period. Interest will be charged on this basis for the period
                  that payment of any bill remains overdue after the date
                  defined by Clause 21(g) or 21(l). Such interest shall be
                  calculated on a simple interest basis and become payable
                  immediately on demand. Unless otherwise agreed by the
                  respective Cableship Operator or Depot Owner all interest
                  charges under this Clause shall be billed directly to the
                  Maintenance Authorities, as indicated in Schedule Bl,
                  responsible for payments under this Agreement or to the
                  appropriate Central Billing party if the Central Billing party
                  is a Party to this Agreement.

         (i)      Should any bill or part thereof be under dispute as to its
                  correctness, then interest as defined in Clause 21(h) shall
                  not apply provided that;

                  (i)      before the due date for payment the Cableship
                           Operator and Depot Owner(s) are advised by telex or
                           like means of communication of the amount in dispute
                           and the nature of that dispute; and

                                       28

<PAGE>

                  (ii)     where the matter under dispute represents less than
                           twenty (20) percent of the total amount billed, an
                           interim payment of at least eighty (80) percent of
                           the total bill has been made. In this respect, the
                           Cableship Owner and Depot Owner(s) shall, if
                           requested by an appropriate Maintenance Authority
                           within 14 days of receipt of the bill in dispute,
                           issue a replacement bill omitting the amount in
                           dispute, such replacement bill shall become due for
                           payment in accordance with Clause 21(g). The amount
                           in dispute shall be investigated and after any
                           necessary corrections shall be re-issued;

                  Notwithstanding the foregoing, in the event that on
                  investigation the disputed bill or part thereof is found to be
                  correct, then the Maintenance Authorities shall pay interest
                  on the unpaid part from the day after the due date for payment
                  of the disputed bill in accordance with Clause 21(h) above.

         (j)      Recognising that some Maintenance Authorities within various
                  construction and maintenance agreements have appointed a
                  Central Billing party in respect of their Scheduled Cables,
                  the Cableship Operators and Depot Owner(s) respectively shall
                  forward the original invoice to that Central Billing party for
                  payment. Information copies of bills 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 Schedule B2.

         (k)      Notwithstanding Clause 21(j) the respective Maintenance
                  Authorities shall remain responsible and individually liable
                  for all payments due by them under this Agreement and as
                  indicated in Schedule Bl.

         (l)      Any amount billed to but not paid by an appointed Central
                  Billing party before the expiry of thirty (30) days after its
                  due date for payment in accordance with Clause 21(g) may be
                  re-billed by the respective Facility Provider to the
                  Maintenance Authorities responsible for payment in accordance
                  with Schedule Bl. Such rebilled amounts shall become due for
                  payment within 7 days of receipt by the Maintenance Authority.
                  Any re-billed amount not paid within 7 days shall accrue
                  interest in accordance with Clause 21(h).

22.      RECORDS

         (a)      The Facility Providers shall as appropriate keep for a period
                  of not less than six years from the date of issue, such
                  records, vouchers, accounts, or reproduction thereof in
                  whatever form, of all costs incurred in connection with the
                  Cableship Running Costs, and the Storage Costs and Transfer
                  Costs of the Depot(s) to support their billing or derived
                  settlements of such costs to and amongst the

                                       29

<PAGE>

                  Maintenance Authorities and shall make such records, vouchers,
                  and accounts available at all reasonable times for inspection
                  by the Maintenance Authorities.

         (b)      The Cableship Operator shall keep repair and maintenance
                  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 a right to obtain copies of
                  such records upon request.

         (c)      After each repair operation the Cableship Operator shall
                  forward to the relevant Maintenance Authority a report on the
                  repair work which shall include a schedule of events,
                  electrical data and diagrams and charts of the operation.

23.      LIABILITY AND INDEMNITY

         (a)      For the purposes of this Clause the reference to Owner shall
                  refer to either the Cableship Operator or Depot Owner or both
                  concerned when a claim or liability arises under the terms of
                  the Agreement. In no event shall there be joint liability
                  between any Cableship Operator or Depot Owner unless otherwise
                  agreed in writing between or amongst them.

         (b)      Each Owner shall be liable for all direct damages to persons
                  or property arising in the discharge of its obligations under
                  the Agreement to the extent that such damages have resulted
                  from the intentional or negligent acts or omissions of the
                  Owner, its agents or employees. The Owner shall indemnify and
                  hold harmless the Maintenance Authority concerned against all
                  claims, actions, demands or judgments for such direct damages.

         (c)      Each Owner 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 negligence or intentional acts of a
                  Maintenance Authority and to that extent the said Owner will
                  indemnify and hold harmless the Maintenance Authority against
                  all claims, actions, demands, or judgments for damages by
                  employees or agents of the Owner except to the extent that
                  such claims, actions, demands and judgments arise out of the
                  negligence or intentional acts of a Maintenance Authority.

         (d)      Each Maintenance Authority shall be liable for all direct
                  damages to persons or property arising in the discharge of its
                  obligations under the 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. The Maintenance Authorities shall indemnify and
                  hold harmless the Owner concerned against all claims, actions,
                  demands or judgments for such direct damages.

                                       30

<PAGE>

         (e)      Except as stated in Clauses 23 (a), (b), (c) and (d) no Owner
                  or Maintenance Authority shall be liable for any other damages
                  suffered by the other nor shall either or any of them be
                  required to indemnify or hold harmless the other against
                  claims made by any person or entity against either or any of
                  them for damages arising from the acts or omissions of either
                  or any of them in the discharge of their respective
                  obligations under this Agreement.

24.      INSURANCE

         (a)      The Cableship Operators and Depot Owner(s) respectively shall
                  be responsible for obtaining their necessary insurance
                  coverage as specified in Schedules Dl and El respectively.

         (b)      if requested by a Maintenance Authority the Facility Providers
                  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.

25.      FORCE MAJEURE

         (a)      Neither the Cableship Operators, nor the Depot Owner(s) shall
                  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 neither the Cableship Operators nor the Depot
                  Owner(s) shall be liable for any delay or failure to carry out
                  their duties and obligations hereunder arising or resulting
                  from:

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

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

         -        Act of God.

         -        Act of War.

         -        Act of public enemies.

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<PAGE>

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

         -        Quarantine restrictions.

         -        Act or omission of the Maintenance Authority, his 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 Authority's plant and equipment.

         -        Latent defects not discoverable by due diligence.

         -        Pirates or assailing thieves.

         -        Adverse weather conditions.

26.      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 Clause
                  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

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<PAGE>

                  Cableships being frozen in and/or damaged, he has liberty to
                  sail to a convenient open place and await new instructions.

         (c)      The Commander shall have liberty to comply with any orders or
                  directions as to departure, arrival, routes, ports 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 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 Clauses 26(a) and (b) and (c) 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 Clause 19.

27.      DISTRESS AND SALVAGE

         (a)      At all times during the term 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
                  carry 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.

         (b)      The Cableship Operators shall be at liberty to engage in
                  salvage without the written consent of the Maintenance
                  Authorities. All salvage money earned by the Cableships shall
                  be divided equally between the Cableship Operator and the
                  Maintenance Authorities after deducting the Cableship
                  Operator's Commander's, Pilot's, Officer's and Crew's share,
                  legal expenses, Fixed Standing Charges and Running Costs
                  during the time lost, repairs to damage if any and any other
                  loss or expense sustained as a result of the salvage. The
                  Maintenance Authorities shall be bound by any measure taken by
                  the Cableship Operator in order to secure payment of salvage
                  and to fix its amount.

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<PAGE>

28.      LEGAL INTERPRETATION

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

29.      ARBITRATION

         (a)      All disputes arising in connection with this Agreement and
                  which cannot be settled to the mutual satisfaction of the
                  Parties shall be finally settled under the Rules of
                  Conciliation and Arbitration of the International Chamber of
                  Commerce by one or more arbitrators appointed in accordance
                  with the said Rules.

         (b)      Notwithstanding Clause 29(a), if there is no unanimous
                  agreement by all the Parties to have the dispute heard before
                  an arbitrator in accordance with Clause 29(a), the dispute
                  shall be heard before a court of Law in accordance with Clause
                  28.

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

30.      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.

31.      STATUS OF CABLESHIPS AND ASSOCIATED FACILITIES

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

32.      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 may be
                  amended subject to agreement by telex between and amongst all
                  the Parties.

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<PAGE>

33.      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 a
         statutory successor of the same.

34.      EXECUTION AND COUNTERPARTS

         This Agreement shall be executed in 16 (sixteen) 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 F 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.

35.      ENTIRE AGREEMENT

         This Agreement together with the Schedules hereto constitute the entire
         agreement between the Parties in relation to its subject matter. All
         references to the Party(ies), Clause(s) and Schedule(s) refer to the
         Party(ies), Clause(s) and Schedule(s) under this Agreement. In
         addition, and where the context requires, the singular shall be taken
         to mean the plural and the plural shall be taken to mean the singular.

36.      HEADINGS

         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

                                       35

<PAGE>

                  given if deposited by hand at, or despatched by airmail of the
                  most expeditious class or by telex or electronic mail
                  addressed to, the last known registered office of 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 br
         issued or published without the prior agreement of the Parties.

40.      CONFIDENTIAL INFORMATION

         All Parties to this Agreement shall treat as confidential any
         information arising from and in connection with this Agreement and
         shall not divulge or turn to account any information oral or written to
         a third party without the prior written agreement of all 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;

                  or

                  (ii)     the necessary government approvals.

42.      INSOLVENCY

         Upon the happening 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;

                                       36

<PAGE>

                  (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
                           legalisation 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.

43.      TRANSFER OF RESPONSIBILITIES

         (a)      In the case of any of the events in Clause 42 occurring to
                  ASEAN Cableship Private Limited which consequently require
                  ASEAN Cableship Private Limited to withdraw from this
                  Agreement, Cable and Wireless (Marine) Limited undertake to
                  provide the repair and maintenance responsibilities of the
                  Cableship Retriever under the terms and conditions of this
                  Agreement for the remainder of the term.

         (b)      The ASEAN Cableship Private Limited hereto agrees and the
                  Parties hereto agree that such transfer of responsibilities
                  referred to in Clause 43(a) is deemed to be effective upon any
                  of the events referred to in Clause 42 occurring to ASEAN
                  Cableship Private Limited.

                                       37

<PAGE>

SIGNED:

For and on behalf of                             Attest              Date
ASEAN CABLESHIP PRIVATE LTD

  /s/ Name of Signatory                          Name of Attestor    29/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
COMMUNICATIONS AUTHORITY OF
THAILAND

 /s/ Name of Signatory                           Name of Attestor    30/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELESS (HONG KONG)
LTD

  /s/ Name of Signatory                          Name of Attestor    27/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELES (MARINE) LTD

  /s/ Name of Signatory                          Name of Attestor    20/5/86
--------------------------------                 ----------          -------

For and on behalf of                             Attest
CABLE AND WIRELESS PLC

  /s/ Name of Signatory                          Name of Attestor    20/5/86
--------------------------------                 ----------          -------

                                       38

<PAGE>

For and on behalf of                             Attest               Date
EASTERN TELECOMMUNICATIONS
PHILIPPINES INC

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
INTERNATIONAL TELE-
COMMUNICATION DEVELOPMENT
CORPORATION

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
JABATAN TELEKOM MALAYSIA

/s/ Name of Signatory                            Name of Attestor     30/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
KOKUSAI DENSHIN DENWA CO., LTD.

/s/ Name of Signatory                            Name of Attestor     26/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
OVERSEAS TELECOMMUNICATIONS
SERVICES

/s/ Name of Signatory                            Name of Attestor     27/5/86
--------------------------------                 ----------           -------

                                       39

<PAGE>

For and on behalf of                             Attest               Date
OFFICE DES POSTES ET
TELECOMMUNICATIONS

/s/ Name of Signatory                            Name of Attestor     26/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest

OVERSEAS TELECOMMUNICATIONS
COMMISSION (AUSTRALIA)

/s/ Name of Signatory                            Name of Attestor     28/5/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
P.T. (PERSERO) INDONESIAN
SATELLITE CORPORATION

/s/ Name of Signatory                            Name of Attestor     29/5/86
--------------------------------                 ----------           -------

For and on half of                               Attest

SEMBAWANG CABLE DEPOT
PRIVATE LIMITED

/s/ Name of Signatory                            Name of Attestor     12/6/86
--------------------------------                 ----------           -------

For and on behalf of                             Attest
THE TELECOMMUNICATION
AUTHORITY OF SINGAPORE

/s/ Name of Signatory                            Name of Attestor     29/5/86
--------------------------------                 ----------           -------

                                       40

<PAGE>

For and on behalf of                             Attest               Date
VIDESH SANCHAR NIGAM LTD.

/s/ Name of Signatory                            Name of Attestor     23/5/86
--------------------------------                 ----------           -------

                                       41

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