TELECOM NEW ZEALAND LIMITED
SEALCORP TELECOMMUNICATIONS GROUP LIMITED
BROCKER INVESTMENTS LIMITED
AGREEMENT IN RESPECT OF CELLULAR
HANDSETS AND OTHER EQUIPMENT
Telecom
NEW ZEALAND
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CONTENTS
1. DEFINITIONS 1
2. APPOINTMENT 4
3. TERM 5
4. FORECASTING QUANTITIES 6
5. PURCHASE AND STORAGE OF EQUIPMENT 7
6. SALES OF EQUIPMENT 11
7. ORDERS BY CUSTOMERS 14
8. NOTIFICATION OF CUSTOMER ORDERS/ICMS 15
9. MEETINGS, REPORTING, SYSTEMS AND ACCESS TO INFORMATION AND AUDIT 16
10. PAYMENT 18
11. INTELLECTUAL PROPERTY PROTECTION 19
12. FORCE MAJEURE 20
13. TERMINATION 21
14. GUARANTEE 22
15. CONFIDENTIALITY 23
16. NOTICES 24
17. DISPUTE RESOLUTION 24
18. GENERAL 26
19. CONDITION 27
EXECUTION 28
SCHEDULE A DEALERS 28
SCHEDULE B MANUFACTURERS 47
SCHEDULE C QUALIFYING CRITERIA FOR MANUFACTURERS 48
SCHEDULE D PERMITTED SERVICES TO MANUFACTURERS 49
SCHEDULE E HANDLING FEES 50
SCHEDULE F SERVICE LEVELS 53
SCHEDULE G WEEKLY AND MONTHLY REPORTING REQUIREMENTS 54
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AGREEMENT dated the day of 1997
PARTIES
TELECOM NEW ZEALAND LIMITED ("Telecom")
SEALCORP TELECOMMUNICATIONS GROUP LIMITED ("STG")
BROCKER INVESTMENTS LIMITED ("Brocker")
INTRODUCTION
A. Telecom currently buys cellular handsets and other equipment from a range
of manufacturers, and on-sells such items to:
(a) various dealers, for sale by such dealers to their customers in
conjunction with a cellular airtime or other communications
package; and
(b) its customers generally, in conjunction with a cellular airtime or
other communications package.
Telecom has determined that it no longer wishes to be involved in the
buying and selling of such cellular handsets and other equipment.
C. Accordingly, Telecom has appointed STG, and STG has accepted that
appointment, to buy cellular handsets and other equipment as principal
and on-sell those to both dealers and (in limited circumstances) Telecom
for on-sale to their respective customers.
D. Brocker has agreed to guarantee the performance by STG of its obligations
under this agreement.
AGREEMENT
1. DEFINITIONS
1.1 Definitions: In this agreement, unless the context otherwise requires:
"Annual Forecast" has the meaning given to that term in clause 4.1(b).
"Confidential Information" means the information referred to in clause
15.1.
"Customer" means any person who is, or may become, a customer of Telecom
in respect of the use of a communications package or solution using an
item of Equipment.
"Dealers" means the dealers listed in Schedule A, together with such
other dealers nominated in writing from time to time by Telecom, but
excluding any dealers nominated in writing from time to time by Telecom.
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"Equipment" means:
(a) cellular handsets which are suitable for use in conjunction with the
Telecom Cellular Network ("Handsets");
(b) such cellular accessories which are suitable for use in conjunction with
Handsets as are nominated in writing by Telecom from time to time
("Accessories");
(c) such paging equipment as is nominated in writing by Telecom from time to
time ("Paging Equipment"); and
(d) such other equipment as is agreed between Telecom and STG from time to
time ("Other Equipment").
"Force Majeure Event" means an event or occurrence:
(a) which is beyond Telecom1s or STG's (as the case may be) reasonable
control (including, without limitation, acts of God or the public enemy,
flood, earthquake, storm, cyclone, tornado, hurricane, lightning, fire,
explosion, epidemic, war, embargoes, riot or civil disturbances,
sabotage, expropriation, confiscation or requisitioning of facilities,
the imposition of disabling exchange rate controls, orders or temporary
or permanent injunctions of any duly constituted court of competent
jurisdiction); and
(b) which Telecom or STG (as the case may be) could not have reasonably
foreseen or taken reasonable measures to prevent,
but which shall not include strikes, lock-outs or any other form of labour
dispute.
"Forecast Sales" means, in respect of each type of Equipment in each Quarter,
the aggregate forecast quantity of sales of such Equipment in each month in that
Quarter in the Annual Forecast prepared one month before the commencement of
that Quarter.
"GST" means goods and services tax payable under the Goods and Services Tax Act
1985.
"Handling Fee" means, in respect of the Forecast Sales for Handsets for any
month, the handling fee calculated in accordance with the formula set out in
Excel Spreadsheet named "Phone@l20K Units" (an example of which is printed in
Schedule E) for the Quarter in which that month falls or, where clause 6.3
applies, the adjusted handling fee calculated in accordance with Schedule E.
Where no fee is set out in that schedule (such as in relation to Accessories,
Paging Equipment and Other Equipment), the handling fees agreed by Telecom and
STG and recorded in writing shall apply (with each such agreement deemed to be
an amendment to Schedule E in accordance with clause 18.2).
"ICMS" means Telecom's Integrated Customer Management System.
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"Intellectual Property" means, in respect of each of Telecom and STG, all
intellectual and industrial property rights and interests (including common law
rights and interests) owned or held by that party, or lawfully used by that
party, including, without limitation:
(a) patents, trade marks, service marks, copyrights, registered designs,
trade names, symbols and logos;
(b) patent applications and applications to register trade marks, service
marks and designs; and
(c) all formulae, methods, plans, data, drawings, specifications,
characteristics, equipment, designs, inventions, discoveries,
improvements, know-how, experience, software products, trade secrets,
price lists, costings, brochures and other information used by that party
in the course of its business.
"Manufacturers" means the Equipment manufacturers listed in Schedule B, together
with such other Equipment manufacturers approved in writing from time to time by
Telecom who meet the qualifying criteria set out in Schedule C, but excluding
any manufacturers nominated in writing from time to time by Telecom.
"Order Quantity" means, in respect of each type of Equipment any month during
the Term, the quantity of that type of Equipment to be ordered by STG for that
month as determined in accordance with clause 4.4.
"Quartet" means 1 April to 30 June, 1 July to 30 September, 1 October to 31
December and to 1 January to 31 March.
"Related Company" has the meaning given to that term in section 2(3) of the
Companies Act 1993, and "Related Companies" has a corresponding meaning.
"Services" means the services to be provided by STG to Telecom, and the other
obligations of STG, under this agreement.
"Term" means the term set out in clause 3.1, together with any formal or
informal extension of term under either of clauses 3.2 or 3.3.
"Working Day" has the meaning given to that term in section 2 of the Companies
Act 1993.
1.2 Interpretation: In this agreement, unless the context otherwise requires:
(a) a reference to the "Services" includes, where the context
requires, any part of the Services;
(b) a reference to "type of Equipment" is a reference to either
Handsets, Accessories, Paging Equipment or Other Equipment, as the
context may require;
(c) words importing one gender include the other gender;
(d) the singular includes the plural and vice versa;
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(e) headings are for convenience only and shall not affect
interpretation;
(f) references to a month or a year are references to a calendar month
or year, as the case may be;
(g) a reference to STG or Telecom is a reference also to that party's
executors, administrators, and permitted assigns or successors
(including, without limitation, upon an amalgamation under the
Companies Act 1993);
(h) a reference to a "persons includes an individual, firm, company,
corporation or unincorporated body of persons, or any state or
government or any agency thereof (in each case, whether or not
having separate legal personality), and a reference to a "company"
includes a person;
(i) references to sections, clauses and schedules are references to
sections, clauses and schedules of this agreement, unless
otherwise specifically stated; and
(j) references to any legislation or to any provision of any
legislation (including regulations and orders) includes:
(i) that legislation or provision as from time to time amended,
reenacted or substituted and, unless otherwise specifically
stated, refers to New Zealand legislation and provisions;
and
(ii) any statutory instruments, regulations and orders issued
under any such legislation or provision.
2. APPOINTMENT
2.1 Appointment: Telecom appoints STG, and STG accepts that appointment, to
provide the Services, on the terms contained in this agreement, for the
Term.
2.2 Exclusivity by STG: In consideration of Telecom agreeing to enter into
this agreement, STG agrees not to provide the Services, or services
substantially similar to the Services, during the Term in respect of
Equipment (or any equipment similar to the equipment but used on a
communications network other than the Telecom Cellular Network) to any
person in New Zealand, other than Telecom or its Related Companies,
provided however that nothing in this clause shall prevent STG from
undertaking any such activities on behalf of Cellnet Mobile Services
Limited or its Related Companies, while such companies remain in
substantially the same ownership as at the date of this agreement.
2.3 Exclusivity by Telecom: In consideration of STG agreeing to enter into
this agreement, Telecom agrees that neither it nor its Related Companies
will, during the Term, buy and sell, or procure another person to buy and
sell, Equipment, except:
(a) in accordance with this agreement; or
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(b) in accordance with the provisions of the "Preferred Supplier
Agreement" between Telecom and Motorola New Zealand Limited.
3. TERM
3.1 Term: Subject to earlier termination in accordance with section 13, the
term of this agreement shall be one year, commencing on 10 November 1997
and ending on 9 November 1998.
3.2 Renewal: The parties agree:
(a) to meet no later than two months prior to the expiry of the Term
and discuss in good faith whether they should extend the term of
this agreement for a period beyond the Term and, if so, the terms
and conditions of such extension;
(b) that, in the context of such discussions, STG shall provide
Telecom with full details of its proposed handling fees for any
extended term, together with all relevant supporting information;
and
(c) that any such extension shall be based on the principle that any
efficiencies achieved, or any reductions in costs incurred, by STG
during the Term shall be shared between Telecom and STG in
determining the handling fees under this agreement for any
extended term. In seeking to reach agreement upon the manner in
which the benefit of any efficiencies or any reductions in costs
are to be shared between Telecom and STG, Telecom and STG shall:
(i) have regard to the respective contributions made by each of
Telecom and STG in achieving such efficiencies and cost
reductions;
(ii) seek to ensure that they share in any efficiencies and cost
reductions resulting from general industry trends and
technology improvements.
3.3 Month by month extension: If STG continues to provide the Services to
Telecom after expiry of the Term, without the agreement having been
formally extended under clause 3.2, then:
(a) this agreement shall continue in accordance with its terms until
such time as one party gives at least one month's written notice
of termination to the other, with such notice to specify the date
of termination;
(b) if this agreement is ultimately extended under clause 3.2, then
the handling fees agreed for that extension shall, if they are
lower than the Handling Fees under this agreement, be backdated to
the end of the Term, and STG shall forthwith pay to Telecom the
excess handling fees which have been charged by STG to Dealers.
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4. FORECASTING QUANTITIES
4.1 Forecasting methodology: The parties agree the following arrangements in
respect of determining the necessary purchases of Equipment by STG in any
month during the Term:
(a) no later than five Working Days before the end of each month
during the Term STG shall provide to Telecom:
(i) details of Equipment sales in the previous month together
with such other information as may reasonably be requested
by Telecom to enable it to prepare a forecast of expected
Equipment sales for each month of the twelve month period
commencing on the first day of the month which is two
months after the month in which the information is provided
("STG Forecast Information"). For example, where STG
Forecast Information is being provided in December, the
first month of the forecast period will be February; and
(ii) a forecast of STG's expected stock of Equipment on hand at
the beginning of the first month of the forecast period;
(b) Telecom shall consider the STG Forecast Information in light of
its knowledge of the Equipment market and its promotional plans
over the period of the forecast and shall, by the end of the month
in which the Sealcorp Forecast Information is provided, provide to
STG:
(i) a forecast of necessary Equipment sales and purchases for
each month of that twelve month period ("Annual Forecast");
and
(ii) details of the quantity of Equipment that it requires to be
ordered for the first month of the forecast period (taking
into account the Annual Forecast and the forecast stock
levels advised by STG under clause 4.l(a)(ii)), together
with details of the times at or by which it will require
the orders to be placed by STG.
4.2 Detail of forecasts: In respect of:
(a) the first month of the Annual Forecast, the Annual Forecast shall
detail:
(i) the quantity of Equipment to be purchased from each
Manufacturer;
(ii) in respect of each Manufacturer, the precise models and
prices of the Equipment to be purchased from that
Manufacturer;
(iii) the times at which Telecom requires that certain models of
Equipment be ordered from the relevant Manufacturer;
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(b) the remaining months of the Annual Forecast, such forecast shall,
to the extent reasonably and practically possible, provide the
level of detail provided under paragraph (a).
4.3 Forecasted Quantity: The parties agree that the Annual Forecast shall be
used as follows:
(a) the forecast for Equipment purchases for the first month of the
Annual Forecast shall be used in determining, under clause 4.4,
the Equipment order that STG will be obliged to make under clause
5.1;
(b) the forecast for Equipment sales shall be used in determining the
Forecast Sales for each Quarter; and
(c) the remaining months of the Annual Forecast shall be indicative,
and for information purposes only.
4.4 Order Quantity: Immediately upon receipt of the information provided by
Telecom under clause 4.1(b), STG shall send a signed notice to Telecom
setting out the Equipment (in the detail specified in clause 4.2(a))
which it believes that it is required to purchase for the first month of
the Annual Forecast period, and:
(a) if Telecom agrees with the details of that notice, it shall
promptly countersign it and return it to STG, upon which the
details specified in that notice shall be the "Order Quantity" for
the purposes of this agreement; or
(b) if Telecom does not agree with the details of that notice, it
shall notify STG of that fact and the parties shall meet urgently
and as many times as necessary to agree the Order Quantity for the
relevant month, and record that agreement in writing.
4.5 Extended or contracted forecast period for certain Equipment: The
forecast methodology recorded in clause 4.1 is based on the assumption
that a one month lead time is required to procure the Equipment which
forms part of the Order Quantity. If, however, the procurement time of
particular Equipment from a Manufacturer is shorter or longer than that
period of one month, then STG may (at all times acting reasonably) advise
Telecom of the required procurement period, and Telecom shall use all
reasonable endeavours to provide the Order Quantity for that particular
Equipment at a time which allows procurement by the time at which that
Equipment is forecast to be required.
4.6 Forecast only: Each party acknowledges and agrees that the Annual
Forecast to be provided under this section 4 is a forecast only, and that
no liability attaches to any party in relation to the preparation of that
forecast, except where that party has acted negligently or fraudulently
in connection with such preparation.
5. PURCHASE AND STORAGE OF EQUIPMENT
5.1 Purchase: For each month during the Term, STG shall purchase:
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(a) the Order Quantity of Handsets and Paging Equipment for that
month, so that such Handsets and Paging Equipment are received as
close to the time as is specified in the Annual Forecast for the
relevant items of Equipment, but no earlier than two weeks prior
to that required date; and
(b) such other Handsets and Paging Equipment as are necessary to
satisfy the Handsets and Paging Equipment orders of Dealers and
Telecom, so that such Handsets and Paging Equipment are received
as soon as is reasonable and practicable after the date of the
order, having regard to the procurement time of that Equipment
from the relevant Manufacturer. All such Handsets and Paging
Equipment purchases shall be first approved in writing by Telecom
(which shall not unreasonably withhold or delay any such
approval).
5.2 Manufacturer contracts: In order to enable it to fulfill its obligations
under clause 5.1, and to otherwise meet the Handsets and Paging Equipment
requirements of Dealers and Customers, STG shall within two months of
commencement of the Term, and at all times thereafter during the Term,
have an agreement for the purchase of Handsets and Paging Equipment with
each Manufacturer, which shall:
(a) authorise Telecom to negotiate as STG's agent, but in consultation
with STG, the price of the Handsets and Paging Equipment purchased
by STG from that Manufacturer;
(b) contain a provision that all Handsets and Paging Equipment
purchased by STG from the Manufacturer shall be at the price
agreed between Telecom and the Manufacturer;
(c) contain a provision that the Manufacturer will only make available
to STG Handsets and Paging Equipment which have been approved by
Telecom for supply to STG; and
(d) contain a provision authorising STG to cancel an order from that
Manufacturer which has not been delivered to STG within 10 Working
Days of the due date for delivery,
with all remaining terms to be agreed by STG with the Manufacturer.
5.3 Cancellation of orders: Where Telecom has approved an order of Equipment
(whether as part of an Order Quantity or otherwise) and that Equipment
has not been delivered by the relevant Manufacturer within 10 Working
Days of the due date for delivery, then STG shall, if requested to do so
by Telecom in writing, cancel that order in accordance with the provision
referred to in clause 5.2(d).
5.4 Storage: During the Term, STG agrees to store all Equipment purchased by
it in a secure, waterproof and otherwise appropriate storage facility
until such time as it is to be delivered to a Dealer, and, in undertaking
such storage, STG agrees to exercise the degree of skill, diligence,
prudence and foresight which would reasonably be expected from a skilled
and experienced operator engaged in the same type of undertaking.
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5.5 Insurance: During the Term, STG agrees to effect and maintain insurance
over the Equipment which is sufficient to fully replace the quantity of
Equipment which is stored at STG's storage facility at any given time.
5.6 Storage fee: If any item of Equipment purchased pursuant to clause 5.1 or
clause 5.8 (other than any damaged item of Equipment not being held by
STG at the request of Telecom) has not been sold to a Dealer or Telecom
and is, accordingly, still being stored by STG 90 days after it was
delivered to STG from a Manufacturer or, where such Equipment is
delivered to STG more than two weeks prior to the month for which it was
ordered, is still being stored by STG 3 months after the commencement of
that two week period, then Telecom shall pay to STG a storage fee equal
to:
(a) 2% (plus GST) of the purchase price of that Equipment per full
month of further storage, for the next 3 months of further
storage, or a pro rata amount for each part month of further
storage up to the relevant 3 months;
(b) 3% (plus GST) of the purchase price of that Equipment per full
month of further storage thereafter, or a pro rata amount for each
part month thereafter,
by the 20th of the month following the month in which STG provides
Telecom with an invoice for such amounts.
5.7 Warranty: Telecom warrants that all Equipment purchased by STG pursuant
to clause 5.1 will be sold pursuant to section 6 or section 7 within 12
months of the date of delivery of the relevant Equipment to STG by a
Manufacturer. If this warranty is breached, then the parties shall
consult on, and attempt to agree upon, the appropriate outcome, provided
always that if the parties have not been able to so agree within 20
Working Days of the breach arising:
(a) Telecom shall purchase such Equipment from STG for a price equal
to the purchase price of such Equipment by STG, plus GST;
(b) STG shall continue to store such Equipment, at its risk and
covered by its insurance, for such period as is specified by
Telecom, and Telecom shall pay the storage fee referred to in
clause 5.6; and
(c) the parties shall consult on the appropriate manner of disposing
of the Equipment, and agree that any proceeds of sale shall belong
to Telecom.
5.8 Purchase of current Equipment inventory: Telecom agrees to sell, and STG
agrees to purchase, all Equipment owned by Telecom as at the commencement
date of this agreement (excluding all Equipment which Telecom either
wishes to retain or which Telecom and STG agree is obsolete as at that
date), on the following basis:
(a) such Equipment may be sold and purchased in one or more
installments! shipments;
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(b) at or about the date of sale and purchase, and at any relevant
subsequent date, Telecom shall provide STG with a list of
Equipment which it wishes to sell under this clause, and STG shall
as soon as practicable thereafter review that list and notify
Telecom in writing of any items on the list which it regards as
obsolete. If any such items are so notified, then Telecom and STG
shall (acting in good faith) agree which of those items are to be
deleted from the list. Once the list of Equipment being sold and
purchased under this clause is agreed, each of Telecom and STG
shall initial each page of that list for the purposes of
identification;
(c) the purchase price for each model of each type of Equipment shall
be equal to the price of that model as advised by Telecom, plus
GST;
(d) Telecom shall deliver that Equipment, and an appropriate invoice,
to STG either before, or as soon as practicable after, the
commencement date of this agreement specified in clause 3.1 and,
upon such delivery, title and risk in that Equipment shall pass to
STG;
(e) STG shall pay for each installment of that Equipment within 60
days of receipt of an appropriate invoice from Telecom; and
(f) Telecom warrants that that Equipment will be sold to STG free
from all liens, encumbrances, charges, mortgages and adverse
interests of any nature whatsoever.
5.9 Warranties: The parties agree the following arrangements in relation to
any Equipment sold by one party to the other under any provision of this
agreement:
(a) with effect from the time of sale the vendor of the relevant
Equipment assigns (to the extent permitted by law) the benefit of
all of its rights (including contractual rights and warranties)
against third parties in respect of the Equipment; and
(b) to the extent that any such rights are not assignable, the vendor
of the Equipment shall hold such rights in trust for the other
party, and that other party will be entitled to enforce such
rights in the name of the vendor.
5.10 Services provided to Manufacturers: STG shall be permitted to perform
those services specified in Schedule D for Manufacturers and, if it does
provide any of such services to any Manufacturer, then they shall be
provided at a price no greater than that set out in Schedule D, unless
otherwise agreed in writing by Telecom (with any such agreement not to be
unreasonably withheld or delayed).
5.11 Neutrality and confidentiality: STG agrees:
(a) to deal with all Manufacturers equally, and not to favour any
Manufacturer over any other, in any way, in any dealings with the
Manufacturers (provided always that nothing in this clause shall
oblige STG to purchase equal quantities of Equipment from each
Manufacturer);
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(b) not to permit any conflict of interest to arise between its own
interests and those of the Manufacturers generally, which may
result in a breach of paragraph (a) of this clause; and
(c) to not disclose any information provided to STG by a Manufacturer
to any other Manufacturer, except with the prior written consent
of the Manufacturer who provided the information.
6. SALES OF EQUIPMENT
6.1 Supply of Equipment to Dealers: STG agrees to use all reasonable
endeavours to supply Dealers with all of their requirements of Equipment
in each month during the Term, pursuant to the dealer agreements referred
to in clause 6.4 below.
6.2 Price of supply: In each Quarter during the Term, STG agrees to supply
each item of each type of Equipment to Dealers at a price which does not
exceed the aggregate of:
(a) the purchase price of that Equipment from the relevant
Manufacturer, as determined on the basis referred to in clause
5.2, or from Telecom under clause 5.7, as the case may be;
(b) the Handling Fee for the Forecast Sales of that type of Equipment
for that Quarter; and
(c) a percentage mark-up on the amount referred to in paragraph (a) to
reflect the working capital costs incurred by STG as a result of
the payment terms of any Manufacturer, on the basis set out in
Schedule E,
together with GST on that aggregate amount.
6.3 Adjustment to price of supply: If, in any Quarter, the actual quantity of
Equipment sold by STG to Dealers and Customers in that Quarter:
(a) exceeds the Forecast Sales for that Quarter, then the Handling
Fees payable in each month of the next Quarter shall be reduced in
accordance with the formula set out in Schedule E; or
(b) is less than the Forecast Sales for that Quarter, then the
Handling Fees payable in each month of the next Quarter shall be
increased in accordance with the formula set out in Schedule E.
6.4 Dealer agreements: In order to enable it to fulfill its obligations under
clause 6.1, and to meet the Equipment requirements of Dealers, STG shall
at all times during the Term have an agreement with each Dealer for the
sale of Equipment to that Dealer, which shall include the following
terms:
(a) a provision authorising Telecom to deduct from any amounts payable
by Telecom to the Dealer under any agreement between those parties
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any amounts due for payment by the Dealer to STG under the dealer
agreement, which have not yet been paid; and
(b) a provision that the Dealer will be responsible for meeting the
costs of all urgent or special orders of Equipment made by that
Dealer, and that Dealers outside Auckland will meet the additional
costs of same day delivery as opposed to next day delivery,
with all remaining terms to be agreed by STG and the Dealer.
6.5 Delivery requirement: STG shall deliver, with each item of Equipment,
such additional materials as are required by Telecom or a Manufacturer,
and notified to STG in writing from time to time (including, without
limitation, manuals, network connection agreements, and Equipment
instructions).
6.6 Dealer credit limits:
(a) STG agrees to impose on each Dealer a credit limit of an amount
specified by Telecom from time to time, and agrees not to allow a
Dealer's debt to STG to exceed that limit at any time;
(b) Telecom agrees to notify STG promptly of any changes in the credit
limit of any Dealer, and such changed credit limit shall apply
from the date of notification, or from such other date as is
specified by Telecom; and
(c) STG shall be responsible for notifying each Dealer of its credit
limit, and agrees to notify (in writing) any Dealer of any change
in its credit limit, forthwith after receipt of notice of such
change from Telecom.
6.7 Dealer debts:
(a) STG agrees to use all reasonable endeavours during and after the
Term to collect all amounts payable by each Dealer in respect of
Equipment sold by STG to that Dealer;
(b) if any Dealer defaults in any payment due to STO in respect of any
Equipment sold by TG to that Dealer, then:
(i) STG shall provide Telecom with full details of that default
by the 10th day of the month after the month in which the
default occurs;
(ii) If STG has provided such details to Telecom by such date,
Telecom shall, on the 15th day of the month after the month
in which the default occurs, deduct the amount in respect
of which that Dealer is in default from amounts payable by
Telecom to that Dealer, and shall pay the amount deducted
to STG within 10 Working Days of the deduction,
provided always that if a Dealer in default subsequently pays STG, then
STG shall forthwith advise Telecom of that fact, and refund to Telecom
any moneys paid by Telecom to it in respect of the default by the
relevant Dealer;
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(c) if any Dealer is declared bankrupt (in the case of an individual)
or is placed in receivership, liquidation or statutory management
(in the case of a company) and STG is owed money by that Dealer in
respect of Handsets or Paging Equipment sold by STG to that
Dealer, then:
(i) STG shall forthwith notify Telecom of that fact, and
provide Telecom with full details of the amount owing by
that Dealer;
(ii) Telecom agrees to pay to STG an amount equal to the lesser
of that amount owing by, and the credit limit for, that
Dealer, by the 20th day of the month following such
notification; and
(iii) all of STG's right and interest in the debt represented by
the amount paid by Telecom under paragraph (ii) shall
immediately upon notification under paragraph (i) be
assigned to Telecom, and Telecom shall be entitled to
enforce and collect that debt to the exclusion of STG.
6.8 Service levels: STG agrees to comply with the Dealer service levels
specified in Part A of Schedule F in relation to the supply of Equipment
to Dealers during the Term.
6.9 AlteratIons to service levels: STG agrees that Telecom shall be entitled
to alter the service level requirements in Schedule F to respond to
demand and/or trends in the Equipment, cellular and paging markets,
provided always that:
(a) no alteration shall be made unless STG has first been consulted on
the proposed alteration, and has been given a reasonable
opportunity to provide comments thereon;
(b) all alterations must be reasonable; and
(c) except as agreed by STG, no alteration shall be made where that
would result in STG incurring materially higher costs in relation
to the provision of the Services having regard to the anticipated
profit margins thereon.
6.10 Hours of operation: STG shall operate an order system for Dealers and
Telecom:
(a) between the hours of 7.30am and 6pm on every Working Day during
the Term; and
(b) at other reasonable times during the Term as are specified by
Telecom in relation to any promotional activity in which Telecom
proposes to engage in relation to the sale of Equipment, the sale
of airtime on the Telecom Cellular Network and/or the sale of
other communications services to end users,
and Telecom acknowledges that STG may also introduce an Internet ordering
service during the Term.
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14
7. ORDERS BY CUSTOMERS
7.1 Sales of Equipment to Customers through Telecom: The parties acknowledge
that Customers order Equipment from Telecom (rather than through a
Dealer) by calling a Telecom customer service number such as "123" of
"126", or by otherwise contacting Telecom, and the parties agree the
arrangements recorded in this section 7 in relation to such orders.
7.2 Notification: As soon as practicable after receipt of an order from a
Customer, Telecom will notify STG of the order in accordance with section
8, and such notification shall include details of:
(a) the order number for the order;
(b) the name of the Customer;
(c) the delivery address for the Customer;
(d) specific details of the Equipment ordered by the Customer; and
(e) any special conditions of supply of Equipment to the Customer,
including any non-standard delivery times or requirements.
7.3 Delivery/service requirements: Following receipt of the notice referred
to in clause 7.2, STG shall, as agent for Telecom, deliver the relevant
Equipment to the Customer within the time specified in Part B of Schedule
F, and shall otherwise comply with the other service requirements of Part
B of Schedule F.
7.4 Price and payment: STG shall sell to Telecom all Equipment delivered to
Customers as Telecom's agent, and Telecom shall:
(a) where that Equipment is delivered by the time required by Schedule
F, purchase such Equipment from STG for a price determined in
accordance with clause 6.2; or
(b) where that Equipment is not delivered by the time required by
Schedule F, purchase such Equipment for the aggregate of the
amounts in clause 6.2(a) and clause 6.2(c), to the intent that
Telecom shall not pay any Handling Fee in respect of such
Equipment; and
(c) pay for such Equipment within 10 Working Days of receipt of an
invoice from STG.
7.5 Returns by Customers: If any Customer returns any Equipment for any valid
reason (including under the Consumer Guarantees Act 1993), then STG shall
inspect that Equipment, and:
(a) if that Equipment is complete and in the condition that it was in
when it was provided to the Customer (other than by way of a
broken package seal), then STG shall place such item back into its
stock of Equipment, and credit the purchase price of that
Equipment to Telecom;
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15
(b) if that Equipment is not complete or is otherwise not in the
condition that it was in when provided to the Customer, STG shall
advise Telecom of that fact and Telecom and STG shall consult on
the appropriate course of action,
and, in both cases, Telecom shall pay to STG an inspection and handling
fee of $7.25 per item of Equipment where the seal on the packaging of
that Equipment is unbroken, or $10.00 per such item when that seal has
been broken by the Customer.
8. NOTIFICATION OF CUSTOMER ORDERS/ICMS
8.1 Manual notification: Telecom shall (at its option) notify STG of orders
by Customers by means of facsimile, e-mail or, if STG has access to ICMS
under this section 8, ICMS, during the working hours specified in clause
6.10 (provided that if any notification is given before 7:30am on any day
of operation it shall it shall be deemed to be given at 7.30am on that
day or, if it is given on a day other than a day of operation or is given
after 6:00pm on any day, it shall be deemed to be given at 7:30am on the
next day of operation). Telecom will use its reasonable endeavours to
comply with any reasonable request of STG in respect of the format of the
notification.
8.2 ICMS notification: Telecom may (but shall not be obliged to) provide STG
with an ICMS terminal and access to ICMS for the purposes of notification
of Customer orders and, if that occurs:
(a) Telecom will be solely responsible, at its cost, for installing
and maintaining the ICMS terminal and the data link to allow that
terminal to be used;
(b) Telecom reserves the right to remove the ICMS terminal, and STG's
access to ICMS, at any time, and shall be entitled to have full
access to STG's premises to do that;
(c) ownership of the ICMS terminal and data link, and all information
stored in, or forming part of (including all software), ICMS,
shall at all times remain the property of Telecom;
(d) the ICMS terminal shall be at STG's sole risk while located at its
premises; and
(e) STG shall follow all requirements of Telecom in relation to the
use of the ICMS terminal/data link and of ICMS, including (without
limitation) those requirements set out in clause 8.3.
8.3 ICMS requirements:
(a) STG shall use ICMS for the sole purpose of processing Customer
orders and will not use, or allow any other person to use, ICMS
for any other purpose whatsoever;
(b) STG shall only permit persons authorised by Telecom, and who have
an ICMS User ID Number issued to them by Telecom, to access ICMS;
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16
(c) STG shall establish, implement and at all times adhere to security
procedures which are adequate to protect the ICMS terminal /data
link and ICMS, and all information stored in, or forming part of,
ICMS, and which are adequate to ensure compliance with its
obligations under this section 8;
(d) STG shall ensure that no data on ICMS is copied to any other
computer system, and that no other computer system is at any time
linked to or interfaced with ICMS, without the prior consent of
Telecom;
(e) STG shall not, and shall not allow any other person to, use the
ICMS terminal/data link or ICMS to gain access to any other
computer system linked to, or interfaced with, ICMS;
(f) STG shall not, and shall not allow any other person to, decompile,
reverse engineer or otherwise modify any software forming part of
ICMS; and
(k) STG shall promptly notify Telecom of a breach of the requirements
of this section 8, investigate the cause of the breach, and
promptly notify Telecom of the outcome of that investigation.
8.4 No warranties: STG acknowledges that Telecom makes no warranties or
representations of any nature in relation to ICMS, the ICMS terminal/data
link or the operation of, or the accuracy of any information stored in,
such things. Notwithstanding anything hereinbefore contained, Telecom
shall adjust any payment incorrectly made to STG to the extent
appropriate where STG demonstrates that it has received an incorrect
payment on account of inaccuracies in data stored in or provided by ICMS.
8.5 Indemnity in relation to ICMS: STG shall indemnify Telecom against all
costs, claims, damages, demands, expenses, losses, liabilities, and
proceedings arising out of, or in connection with, a breach by it or of
its employees, agents or other representatives of the requirements of
clauses 8.2 and 8.3.
9. MEETINGS, REPORTING, SYSTEMS AND ACCESS TO INFORMATION AND AUDIT
9.1 Regular meetings: Telecom and STG agree to meet regularly throughout the
Term with Manufacturers and Dealers to discuss operational and other
matters arising out of or in connection with the purchase and sale of
Equipment. In advance of each such meeting, each of Telecom and STG shall
use its reasonable endeavours to provide the other party with details,
together with any relevant supporting information, of any material
matters which it wishes to discuss at the meeting.
9.2 Reporting: STG agrees to provide Telecom, at no cost to Telecom, with:
(a) a written report on a weekly basis which contains the information
specified in Schedule G;
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17
(b) a written report on a monthly basis which contains the information
specified in Schedule G; and
(c) such other reports as Telecom may reasonably request in relation
to the Services and this agreement, and which STG is reasonably
able to provide given the systems that it is required to maintain
under clause 9.3,
9.3 Maintenance of systems:
(a) STG shall, at all times during the Term, maintain accurate and
complete inventory and other systems to monitor all matters
associated with the Equipment, including its ordering, movement,
delivery and sale; and
(b) all systems used by STG in connection with this agreement which
are, or use, or include any computer program or circuitry are
fully "Year 2000" and leap year compliant, and will at all times:
(i) function accurately and without interruption despite any
change in date;
(ii) accommodate and accurately calculate, store, and provide
output of, any date information in millennium (i.e. four
digits) date values; and
(iii) accurately communicate centuries, leap years and other
dates in data exchange with other software, systems or
equipment (as applicable).
9.4 Access to information: STG agrees to provide Telecom and its authorised
representatives (including, without limitation, its auditors) with full
access to all of its business records relating to the Services and to its
premises, at no cost, during normal working hours on any Working Day, for
purposes genuinely related to the provision of the Services and this
agreement (and not for any other purpose).
9.5 Audit:
(a) STG shall have its auditors audit the information provided by STG
to Telecom in respect of those items appearing in the Excel
Spreadsheet "Phones @ 120K Units", a copy of which is set out in
Schedule E above the heading "(i) Unit Price to Telecom" (except
that in respect of those items from Fixed Cost to Total Invoice to
Telecom inclusive, only the totals in respect of such items shall
be subject to audit) at the time at which STG's usual financial
audit is being carried out, and such auditors shall provide an
audit report to Telecom on the accuracy of such information;
(b) If Telecom has further concerns about the accuracy of this
information or other information provided by STG, it may discuss
these concerns with STG's auditors;
(c) in addition, Telecom shall be entitled:
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18
(i) to require that STG's auditors conduct an audit on the
matters referred to in paragraph (a), and/or any other
matters connected with this agreement, at any time; or
(ii) to have its own auditors undertake an audit of the matters
referred to in paragraph (a), and/or any other matters
connected with this agreement, at any time,
in each case at Telecom's cost, provided however that if any such audit
shows a material discrepancy in relation to the subject matter of the
audit, STG shall forthwith remedy that discrepancy and shall pay all
costs associated with the audit.
10. PAYMENT
10.1 Time of payment: Each party agrees to pay each invoice (with all such
invoices to comply with the Goods and Services Tax Act 1985) received by
it from the other party by the relevant date specified in this agreement
or, if no such date is specified, by the 20th of the month following the
month in which the invoice was received (Due Date).
10.2 Method of payment: Each party may, at its election, pay any invoice by
either of the following methods:
(a) by cheque posted to the address specified in, or under, clause 16;
or
(b) by direct payment into a bank account nominated by the other
party, and notified in writing to the first party.
10.3 Disputes: Where either party raises any dispute in relation to an invoice
submitted under this agreement ("disputed invoice"), then:
(a) that party must pay that part of the disputed invoice in respect
of which no dispute exists, by the Due Date;
(b) in respect of that part of the disputed invoice which is disputed:
(i) if the dispute is resolved at least five days before the
Due Date, then the amount agreed by the parties to be
payable, or determined under section 17 to be payable, must
be paid by the Due Date;
(ii) in all other cases, the amount agreed by the parties to be
payable, or determined under section 17 to be payable, must
be paid within five Working Days of such agreement or
determination.
10.4 Disputes where invoice already paid: If a party pays any invoice in
relation to any month notwithstanding that it has raised a dispute in
respect of that invoice, or if a dispute arises in connection with an
invoice after payment, then to the extent that the dispute is resolved in
favour of the party who has paid the invoice, the amount which has been
overpaid shall be deducted from the next invoice sent to that party after
the dispute is resolved (or, if no such
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19
invoice is being provided in the month following resolution of the
dispute, then that amount shall be paid to the relevant party by the 20th
day of the following month).
11. INTELLECTUAL PROPERTY PROTECTION
11.1 Intellectual Property Ownership: All Intellectual Property which is owned
by, or is proprietary to, Telecom or STG shall at all times remain owned
by, and be proprietary to, that party exclusively, notwithstanding any
other provision of this agreement. Nothing in this agreement confers on a
party any right or interest in, or licence to use (or permit or cause to
be used) any of the other party's Intellectual Property, except that
other party will have a non-exclusive licence to use that Intellectual
Property to the extent required to give effect to this agreement. The
licence under this clause will expire immediately on the expiry or
termination of this agreement.
11.2 Indemnity by STG: STG shall indemnify Telecom and keep Telecom fully and
effectively indemnified against all actions, proceedings, losses,
liabilities, damages, claims, demands, costs and expenses (including all
legal costs and expenses on a solicitor and own client basis) suffered or
incurred by Telecom arising out of, or in connection with, any claim that
the provision by STG of the Services, or the undertaking of any act by
STG in connection with the Services or this agreement, infringes the
intellectual property rights of any third party (a "third party
intellectual property right claim").
11.3 Indemnity by Telecom: Telecom shall indemnify STG and keep STG fully and
effectively indemnified against all actions, proceedings, losses,
liabilities, damages, claims, demands, costs and expenses (including all
legal costs and expenses on a solicitor and own client basis) suffered or
incurred by STG arising out of, or in connection with, any claim that the
performance by Telecom of any of its obligations under or in connection
with this agreement infringes the intellectual property rights of any
third party (also a "third party intellectual property right claim").
11.4 Procedure: The procedure for handling a third party intellectual property
right claim shall be as follows:
(a) the party against whom the claim is made must promptly notify the
other party in writing of any allegations of infringement of which
it has notice, or becomes aware, and must not make any admission
or purport to settle any such claim without the other party's
prior written consent (which shall not be unreasonably withheld or
delayed);
(b) the party against whom the claim is made shall, at the other
party's request and expense, allow that other party to conduct
and/or settle all negotiations and litigation resulting from any
such claim, provided always that the party against whom the claim
is made shall be entitled to be represented at, and be consulted
on, all such negotiations and litigation; and
(c) the party against whom the claim is made must, at the request of
the other party, afford all reasonable assistance with such
negotiations or litigation, and that other party must reimburse
the party against
<PAGE>
20
whom the claim is made for its reasonable staff costs in relation
to the provision of such assistance, together with any reasonable
out of pocket expenses incurred by the party against whom the
claim is made in doing so.
11.5 Remedies: If at any time following the service of any court order on:
(a) STG preventing the provision of the Services by STG as a result of
a third party intellectual property right claim, STG must, if
requested by Telecom:
(i) obtain the right to continue providing the Services to
Telecom; or
(ii) modify the Services so that they become non-infringing,
at STG's election and at its own expense, provided that STG must ensure
that the remedy does not in any way affect the performance of the
Services; or
(b) Telecom preventing it from performing any obligation under or in
connection with this agreement as a result of a third party
intellectual property claim, Telecom must, if requested by STG:
(i) obtain the right to continue to perform that obligation; or
(ii) modify that obligation so that it becomes non-infringing,
at Telecom's own election and at its own expense.
12. FORCE MAJEURE
12.1 Force Majeure Event: Notwithstanding any other provision of this
agreement, neither Telecom nor STG shall be liable for any failure or
delay in complying with any obligation imposed on such party under this
agreement (excluding any payment obligation) if:
(a) the failure or delay arises from, or in connection with, a Force
Majeure Event;
(b) that party, on becoming aware of the Force Majeure Event, promptly
notifies the other party in writing of the nature of, the expected
duration of, and the obligation(s) affected by, the Force Majeure
Event; and
(c) that party uses its best endeavours to:
(i) mitigate the effects of the Force Majeure Event on that
party's obligations under this agreement;
(ii) perform that party's obligations in respect of the Services
which are not affected by the Force Majeure Event; and
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21
(iii) perform that party's obligations under this agreement on
time despite the Force Majeure Event.
12.2 Alternative Supply: If STG is unable to provide the Services due to or in
connection with a Force Majeure Event, Telecom may obtain the Services
from another person, or undertake the Services itself, until STG is able
again to supply the Services.
13. TERMINATION
13.1 Default: A party shall be in default under this agreement if:
(a) that party fails to pay any amount due under this agreement by the
due date for payment, and fails to remedy that failure within five
Working Days after receiving written notice (inclusive of the date
of receipt) from the other party requiring the failure to be
remedied;
(b) that party breaches, or fails to properly or promptly perform, any
of its obligations (other than payment obligations) under this
agreement provided that in the case of an immaterial breach, the
non-defaulting party must first have given notice to the
defaulting party on no fewer than two prior occasions requiring
remedy of other immaterial breaches;
(c) the primary, or all, of the business activities of that party are
suspended or cease for more than five consecutive Working Days;
(d) where that party is STG, it defaults on any material obligation
(including a payment or confidentiality obligation) under any
agreement or other arrangement with a Dealer or a Manufacturer;
(e) that party:
(i) goes into receivership or has a receiver, trustee and
manager (or either of them) (including a statutory manager)
appointed in respect of all or any of its property;
(ii) is unable to pay its debts as they fall due, or is presumed
to be unable to pay its debts as they fall due under
section 287 of the Companies Act 1993; or
(iii) makes an assignment for the benefit of, or enters into or
makes any arrangement or composition with, its creditors;
or
(f) any resolution is passed or any proceeding is commenced for the
winding up or liquidation of that party (whether on a voluntary or
involuntary basis).
13.2 General right to terminate: Either party may terminate this agreement
immediately by written notice to the other if the other party is in
default as specified in clause 13.1.
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22
13.3 Right to terminate for Force Majeure Events: If a Force Majeure Event
under section 12 continues for more than 5 consecutive Working Days, or
for an aggregate of 10 Working Days in any six month period, then the
party not claiming the benefit of the Force Majeure Event shall be
entitled to terminate this agreement.
13.4 Effect of termination: When this agreement expires, or is terminated in
accordance with clause 3.3, 13.2 or 13.3:
(a) all further obligations of each party under this agreement shall
cease'
(b) each party shall return to the other party all Confidential
Information received from the other party and held by it;
(c) STG shall sell, and Telecom shall purchase, all Equipment owned by
STG at the date of termination which is, at the time of physical
delivery to Telecom, free from defect, appropriately packaged, and
in the same condition as it was when received by STG from the
relevant Manufacturer or Telecom (but excluding any Equipment
purchased by STG other than in accordance with an Order Quantity
or another order approved by Telecom). Such Equipment shall be
purchased for a price equal to the aggregate purchase price of
that Equipment by STG from Manufacturers or Telecom (as the case
may be), plus GST (excluding, for the avoidance of doubt, any
Handling Fees and working capital charges under clause 6.2).
Telecom agrees to pay that price, together with any amounts
accrued under clause 5.6 to the date of expiry or termination,
within 7 days of being provided (at STG's cost) with physical
possession of the Equipment, an invoice for the purchase price,
and reasonable evidence supporting the purchase price. STG
warrants that any Equipment sold under this clause shall be free
from all liens, encumbrances, charges, mortgages and adverse
interests of any nature whatsoever (and this warranty shall be
deemed to be repeated on the date of sale under this clause);
(d) STG shall provide Telecom with full details of all orders from
Dealers or Customers which have not, as at the date of termination
or expiry, been fulfilled;
(e) STG will assist Telecom in transiting the provision of the
Services to (at Telecom's election) one of Telecom's own business
groups, one of Telecom's Related Companies, or to any person or
persons nominated by Telecom; and
(f) expiry or termination shall be without prejudice to the rights and
remedies of either party arising out of or in connection with any
breach of this agreement occurring prior to the date of
termination, or to the rights of either party which have accrued
prior to, or which arise out of or in connection with, such
termination.
14. GUARANTEE
14.1 Payment and Performance: Brocker unconditionally and irrevocably
guarantees to Telecom the due and punctual payment by STG of all moneys
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23
from time to time payable by STG under this agreement, and the due,
punctual and proper performance and observance by STG of all of its other
obligations under this agreement.
14.2 Principal obligation: The liability of Brocker under this guarantee shall
constitute a principal obligation of Brocker, and such liability shall
not be relieved or in any way affected in a manner prejudicial to Telecom
by any granting of time, waiver or forbearance to sue by Telecom, or by
other act, omission, matter, circumstance or law whereby Brocker as a
surety only would, but for the provisions of this clause, have been
released from liability.
15. CONFIDENTIALITY
15.1 Obligation of confidentiality: Each party shall at all times (including
after the termination or expiry of this agreement) keep confidential,
treat as privileged, and not directly or indirectly make any disclosure
or use, or allow any announcement, to be made of:
(a) the subject matter or any of the terms of this agreement; or
(b) any information directly or indirectly obtained from that other
party under or in connection with this agreement,
except to the extent:
(c) required by law;
(d) that is necessary to satisfy the requirements of the New Zealand
Stock Exchange or any other stock exchange or trading market upon
which the relevant party or any of its Related Companies is listed
or quoted;
(e) necessary to obtain the benefit of, or to carry out any obligation
under, this agreement; or
(f) that the information is or becomes available in the public domain
without a breach by a party of its confidentiality obligations
under this clause or at law.
15.2 Compelled disclosures: If any party is required to disclose any
Confidential Information, that party shall:
(a) immediately notify the other party in writing so that it may (if
it considers appropriate) seek a protective order or other remedy;
(b) only disclose information to the extent legally required; and
(c) use its reasonable endeavours to obtain undertakings that
confidential treatment will be accorded to the information by the
person to whom it is disclosed.
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24
16. NOTICES
16.1 Notices: Every notice to be given under, or in connection with, this
agreement shall be given in writing by:
(a) personal delivery;
(b) mailing by pre-paid registered post, in which case it shall be
deemed to be given 2 Working Days after (but exclusive of) the
date of mailing; or
(c) facsimile transmission, in which case it shall be deemed to be
given at the time specified in the facsimile transmission report
of the facsimile from which the transmission was made which
evidences full transmission, free of errors, to the facsimile
number of the party given notice unless that party proves that,
contrary to the transmission report, it was not transmitted, or it
was not transmitted in a complete and legible state, to that
party's facsimile,
to the addressees specified below or if a written notice of change of
address is given then to the new address:
(a) Sealcorp Telecommunications Group Limited/Brocker Investments
Limited
Full Address: 4 Bond Street
Grey Lynn
Auckland
Phone: 09 376 7888
Fax: 09 376 7887
Contact person: Mike O'Brien, General Manager - STG/Telecom
liaison person
(b) Telecom New Zealand Limited
Full Address: Level 9
Telecom House
13-27 Manners Street
Wellington
Phone: (04) 382 3240
Fax: (04) 385 1564
Contact person: Graeme Harrington, Group Product Manager
16.2 Working Days: Notwithstanding any other provision contained in this
clause, any notice given after 5 pm on a Working Day, or on a day which
is not a Working Day, shall be deemed to be given at 9 am on the next
Working Day.
17. DISPUTE RESOLUTION
17.1 Disputes: If any dispute arises between the parties out of or in
connection with this agreement ("Dispute"), either party may, by written
notice to the other party, summon a meeting of the parties to the
Dispute. The party claiming a Dispute shall, in its written notice to the
other party or parties, designate as its representative to attend the
meeting(s) a person with authority to settle the Dispute. Each party who
receives such written notice shall give
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25
notice to the other parties in writing within five Working Days of
receipt designating as its representative to attend the meeting(s) a
person with similar authority.
17.2 Negotiations: The persons designated as authorised representatives shall
meet promptly as many times as necessary to discuss the matter and to
negotiate in good faith to resolve the Dispute.
17.3 Mediation: If the Dispute is not resolved by the authorised
representatives within 10 Working Days of a written notice first being
given by one party to the other or others pursuant to clause 17.1, the
Dispute shall be referred to the mediation of a single mediator. The
referral to mediation shall be commenced by a party serving written
notice on the other party or parties to the Dispute stating in full the
subject matter and details of the Dispute, and requiring the Dispute to
be referred to a mediator to be appointed by agreement between the
parties. Failing agreement within five Working Days after, and exclusive
of, the date of service of the written notice, the mediator shall be
appointed at the request of a party by the chairperson or any other
office holder for the time being of the New Zealand chapter of LEADR, or
the nominee of such chairperson or other office holder. The guidelines
which shall govern the mediation shall be set by the parties. Failing
agreement on the guidelines within five Working Days after the
appointment of the mediator, a party may request the mediator to set the
guidelines which shall govern the mediation. The parties agree to then
submit to the mediation and to act in good faith in that mediation in
attempting to resolve the Dispute.
17.4 Arbitration: Where no agreement is reached within 10 Working Days from
the date of appointment of the mediator, any party to the Dispute shall
be entitled, by notice in writing to the other party or parties, to
require the Dispute to be finally resolved by arbitration under the
Arbitration Act 1996 by a sole arbitrator to be appointed by agreement
between the parties or, failing agreement within five Working Days of
receipt of that notice, by the President of the New Zealand Law Society
or their nominee. The decision of the arbitrator shall be final and
binding on the parties, and the costs of the arbitrator shall (subject to
any award by the arbitrator) be borne equally by the parties to the
Dispute.
17.5 Condition precedent: Subject to any right any party may have to apply to
a court for any interim or preliminary relief in respect of the Dispute,
completion or termination of the mediation shall be a condition precedent
to the commencement of arbitration under clause 17.4.
17.6 Restrictions on use of information obtained in course of negotiation and
mediation: The parties acknowledge that the purpose of any exchange of
information or documents or the making of any offer of settlement
pursuant to clauses 17.2 or 17.3 is to attempt to settle the Dispute
between the parties. No party may use any information or documents
obtained solely by reason of clauses 17.2 or 17.3 for any purpose other
than in an attempt to settle the Dispute.
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26
18.1 GENERAL
18.1 Good faith: The parties shall act in good faith towards each other in
respect of all dealings or matters under, or in connection with, this
agreement.
18.2 Amendments: This agreement may only be amended, supplemented or novated
in writing executed by all of the parties.
18.3 Costs: Each party shall pay its own costs of, and incidental to the
negotiation, preparation, execution and enforcing or attempting to
enforce this agreement.
18.4 Further assurances: Each party shall make all applications, execute all
documents and do all acts and things reasonably required to implement and
to carry out its obligations under this agreement.
18.5 No assignment: No party shall be entitled to directly or indirectly
(including due to, or by way of, a change of control or sub-contract)
assign, transfer or otherwise dispose of any of its rights under or
interest in, or any of its obligations or liabilities under, or in
connection with, or arising out of, this agreement, except with the prior
written consent of the other parties, which consent shall not be
unreasonably or arbitrarily withheld or delayed.
18.6 Waiver: Any delay, failure or forbearance by a party to exercise (in
whole or in part) any right, power or remedy under, or in connection
with, this agreement shall not operate as a waiver of such right, power
or remedy. The waiver of any breach of any provision of this agreement
shall not be effective unless that waiver is in writing and is signed by
the party against whom that wavier is claimed. A waiver of any breach
shall not be, or be deemed to be, a waiver of any other or subsequent
breach.
18.7 Full force: The provisions of this agreement and any act, matter or thing
done under or in connection with this agreement or in connection with any
other agreement, instrument, document, judgement or order of any court or
in connection with the expiry or earlier termination of this agreement
shall not operate as a merger of any of the rights, powers or remedies of
any of the parties under, or in connection with, this agreement or at
law, and those rights, powers and remedies shall survive and continue in
full force and effect to the extent that they are unfulfilled or not
exhausted.
18.8 Entire agreement: This agreement constitutes (subject to any amendment in
accordance with clause 18.2) the entire agreement, understanding and
arrangement (express and implied) between the parties relating to the
subject matter of this agreement and supersedes and cancels any previous
agreement, understanding and arrangement relating thereto, whether
written or oral.
18.9 Counterpart execution: This agreement may be executed in any number of
counterparts (including facsimile copies) and, provided that both parties
have executed a counterpart, the counterparts together shall constitute a
binding and enforceable agreement between the parties.
18.10 Governing law: This agreement shall be governed by, and construed in
accordance with, the laws of New Zealand.
<PAGE>
27
19.1 CONDITION
19.1 Condition: This agreement is conditional upon a deed entitled "Deed in
relation to "Preferred Supplier Agreement in respect of Cellular
Handsets" being executed by Motorola New Zealand Limited.
19.2 Condition subsequent: The condition contained in clause 19.1 is a
condition subsequent. If it is not fulfilled by 21 November 1997, each of
the parties shall take all such actions as are reasonably practicable to
restore the parties to the position they were in immediately prior to
execution of this agreement.
19.3 Notification: Telecom will notify STG of satisfaction of the condition in
clause 19.1 promptly following execution of the relevant Deed by
Motorola.
<PAGE>
28
[GRAPHIC OMITTED]
EXECUTION
SIGNED by TELECOM NEW ZEALAND
LIMITED by:
/s/ M. Jesudason
-----------------------------
Signature
M. Jesudason
-----------------------------
Name
General Manager - Business
-----------------------------
Position
SIGNED by SEALCORP
TELECCOMMUNICATIONS GROUP
LIMITED by:
/s/ M. B. Ridgway
-----------------------------
Signature
Michael Ridgway
-----------------------------
Name
Managing Director
-----------------------------
Position
SIGNED by BROCKER INVESTMENTS
LIMITED by:
/s/ M. B. Ridgway
-----------------------------
Signature
Michael Ridgway
-----------------------------
Name
C.E.O.
-----------------------------
Position
<PAGE>
28
SCHEDULE A
DEALERS
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Auckland Telecommunications PO Box 52105 Morningside Auckland
------------------------------------------------------------------------------------------------------------------------------------
J L Marketing PO Box 90382 North Shore Mail Centre Auckland
------------------------------------------------------------------------------------------------------------------------------------
Southtel Communications Limited PO Box 13456 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Corporate Connections Limited PO Box 99263 Auckland
------------------------------------------------------------------------------------------------------------------------------------
Kouka Telephone Services Limited 102 Tancred Street Ashburton
------------------------------------------------------------------------------------------------------------------------------------
New Age Communications PO Box 1509 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Telephone Equipment PO Box 1155 Waikato Mail Centre Hamilton
---------------------------------------- -------------------------------------------------------------------------------------------
Telephone House 1991 Limited 41 Halifax Street Nelson
------------------------------------------------------------------------------------------------------------------------------------
Telephone House Marlborough 1 Redwood Street Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Total Network PO Box 77041 Auckland
---------------------------------------- -------------------------------------------------------------------------------------------
Unicomm (United Communications PO Box 14680 Mt Wellington Auckland
------------------------------------------------------------------------------------------------------------------------------------
Unicomm Cellular(Nth Shore) PO Box 10116 Glenfield Auckland
------------------------------------------------------------------------------------------------------------------------------------
A Ellery & Sons Limited PO Box 178 Greymouth
------------------------------------------------------------------------------------------------------------------------------------
A.T.S Communications PO Box 611 Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Able Business Machines PO Box 9119 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Access Telecom PO Box 7154 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Airwave Communication Services PO Box 19520 Avondale Auckland
------------------------------------------------------------------------------------------------------------------------------------
Alexandra Paper Plus 64 Centennial Avenue Alexandra
------------------------------------------------------------------------------------------------------------------------------------
Allen Motors Northland PO Box 78 Kaikohe
------------------------------------------------------------------------------------------------------------------------------------
Alpha Communications Limited PO Box 392 Napier
------------------------------------------------------------------------------------------------------------------------------------
Andcro Investments Limited 52 The Mall Cromwell
------------------------------------------------------------------------------------------------------------------------------------
Anderson Agencies 52 The Mall Cromwell
------------------------------------------------------------------------------------------------------------------------------------
Anstiss Paper Plus PO Box 374 Ashburton
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
29
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Asmex Business Communications PO Box 1720 Parnell Auckland
------------------------------------------------------------------------------------------------------------------------------------
Australasian Business Systems PO Box 11-511 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Automation & Electronics Limited PO Box 1049 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Barcham Projects Limited PO Box 633 Hastings
------------------------------------------------------------------------------------------------------------------------------------
Bay Business Centre PO Box 390 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Beech Communications PO Box 13 423 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Berry Electronics 148 Thames Street Oamaru
------------------------------------------------------------------------------------------------------------------------------------
Blenheim Electric House PO Box 52 Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Blue Star Office Automation PO Box 68-421 Newton Auckland
------------------------------------------------------------------------------------------------------------------------------------
Blue Star Office Automation PO Box 1868 Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Blue Star Office Products PO Box 235 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Bon Pacific Trading Limited PO Box 1292 Auckland 1
------------------------------------------------------------------------------------------------------------------------------------
Boonen Electronics 106 The Strand Whakatane
------------------------------------------------------------------------------------------------------------------------------------
Brent Cowan Communications Limited PO Box 490 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Buckton Communication PO Box 491 Te Puke
------------------------------------------------------------------------------------------------------------------------------------
Business Applications PO Box 2088 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Business Communications Solutions Box 6320 Te Aro Wellington
------------------------------------------------------------------------------------------------------------------------------------
Business Services 2000 Limited 11 Russell Street Foxton
------------------------------------------------------------------------------------------------------------------------------------
Canterbury Business Svces Limited 4 Moorhouse Avenue Christchurch
------------------------------------------------------------------------------------------------------------------------------------
CDG Systems PO Box 11982 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Cell Line Limited PO Box 62214 Sylvia Park Mt Wellington
------------------------------------------------------------------------------------------------------------------------------------
Cell Link Limited PO Box 14507 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Celldirect PO Box 91204 Wellesley Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Ceilnet Mobile Services Limited PO Box 14002 Panmure Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City PO Box 9337 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Palmerston North) PO Box 4224 Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Celltech Limited PO Box 90 328 Ponsonby Auckland
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
30
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Celltronic PO Box 13595 Newlands Wellington
------------------------------------------------------------------------------------------------------------------------------------
Cellular 1 Pacific 1 Crd Oamaru
------------------------------------------------------------------------------------------------------------------------------------
Cellular Business Systems PO Box 26044 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Cellular One - Manukau 32c Lambie Drive Manukau City
------------------------------------------------------------------------------------------------------------------------------------
Cellular One - Newmarket PO Box 9435 Newmarket Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellular One - Smart Phones PO Box 21 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Cellular One - Takapuna 135 Wairau Rd Takapuna Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellular One-Smart Phones PO Box 2208 Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Cellular Solutions PO Box 34020et Birkenhead Auckland
------------------------------------------------------------------------------------------------------------------------------------
Central Communications PO Box 16122 Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Central Electric Limited PO Box 275 Alexandra
------------------------------------------------------------------------------------------------------------------------------------
Central Refrigeration Services Limited PO Box 170 Taumarunui
------------------------------------------------------------------------------------------------------------------------------------
Check Point Enterprises Limited PO Box 50770 Porirua
------------------------------------------------------------------------------------------------------------------------------------
Christie Electrics PO Box 21 Whakatane
------------------------------------------------------------------------------------------------------------------------------------
CN Security PO Box 5102 Napier
------------------------------------------------------------------------------------------------------------------------------------
Coastal Communications Limited PO Box 2461 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Coastline Auto Electrical PO Box 240 Whangamata
------------------------------------------------------------------------------------------------------------------------------------
Communication Works PO Box 90077 Victoria Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Communication Developments Limited PO Box 46210 Herne Bay Auckland
------------------------------------------------------------------------------------------------------------------------------------
Computer Brokers Private Bag 102999 North Shore Mail Centre Auckland
------------------------------------------------------------------------------------------------------------------------------------
Computerland WCS PO Box 878 Masterton
------------------------------------------------------------------------------------------------------------------------------------
Comserv PO Box 1459 Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Comtech Telecommunications Limited PO Box 112015 Penrose Auckland
------------------------------------------------------------------------------------------------------------------------------------
Craigs Computers & Comms Limited 47 Belmont Road Paeroa
------------------------------------------------------------------------------------------------------------------------------------
Crandall Paper Plus 71 Picton Street Howick Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cromwell Paper Plus 68 The Mall Cromwell
------------------------------------------------------------------------------------------------------------------------------------
D&J Conroy Partnership PO Box 690 Queenstown
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
31
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Datatronics Limited PO Box 866 Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Daves Car Audio 2a Barbour Street Cbristchurch
------------------------------------------------------------------------------------------------------------------------------------
David Brice Electronics 47 Kimbolton Road Feilding
------------------------------------------------------------------------------------------------------------------------------------
Deemess Telectronics Limited PO Box 460 Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Driving Sound Limited 131 Wairau Road Glenfleld Auckland
------------------------------------------------------------------------------------------------------------------------------------
Duckworths RTS PO Box 532 Napier
------------------------------------------------------------------------------------------------------------------------------------
Echo Mechanical & Electrical PO Box 315 Alexandra
------------------------------------------------------------------------------------------------------------------------------------
Edwin Brown Limited 626 Pollen Street Thames
------------------------------------------------------------------------------------------------------------------------------------
Ellerys Home Appliances 11 Weld Street Hokitika
------------------------------------------------------------------------------------------------------------------------------------
Ericsson Cellular Limited PO Box 14946 Panmure Auckland
------------------------------------------------------------------------------------------------------------------------------------
Ericsson Cellular Limited PO Box 14946 Panmure Auckland
------------------------------------------------------------------------------------------------------------------------------------
Fairbairn Lawes Limited 219 Queen Street Nelson
------------------------------------------------------------------------------------------------------------------------------------
Flemings Electrical PO Box 286 Waipukarau
------------------------------------------------------------------------------------------------------------------------------------
Foveaux Communications PO Box 1282 Invercargill
------------------------------------------------------------------------------------------------------------------------------------
GDC (NZ) Limited PO Box 90888 Auckland
------------------------------------------------------------------------------------------------------------------------------------
Gemini Electrical PO Box 117 Kaitaja
------------------------------------------------------------------------------------------------------------------------------------
Genesis Communications PO Box 27344 Mt Roskill Auckland
------------------------------------------------------------------------------------------------------------------------------------
Gisborne Furniture Court 310 Gladstone Street Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Go Mobile PO Box 22 777 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Golden Bay Services 11 Commercial Street Takaka Nelson
------------------------------------------------------------------------------------------------------------------------------------
H M Winlove Limited PO Box 198 Waipukarau
------------------------------------------------------------------------------------------------------------------------------------
Halls Home Team 22 Queens Street Warkworth
------------------------------------------------------------------------------------------------------------------------------------
Hawkes Bay Telephone Co PO Box 1187 Onekawa Napier
------------------------------------------------------------------------------------------------------------------------------------
Heathcote Appliances PO Box 32 Morrinsville
------------------------------------------------------------------------------------------------------------------------------------
Heral Business Centre PO Box 1143 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Herkt Home Appliances Box 615 Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Hubands Appliance Court 76 Victoria Street Dargaville
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
32
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Hubands Retravision PO Box 646 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Hughsons Bookshop PO Box 450 Hawera
------------------------------------------------------------------------------------------------------------------------------------
Icom Systems PO Box 101629 North Shore Mail Centre Auckland
------------------------------------------------------------------------------------------------------------------------------------
Industrial Communication Svcs PO Box 12645 Penrose Auckland
------------------------------------------------------------------------------------------------------------------------------------
Inform Communications 1 Bennett Street Mt Albert Auckland
------------------------------------------------------------------------------------------------------------------------------------
J H Greenwood & Co Limited PO Box 91 Westport
------------------------------------------------------------------------------------------------------------------------------------
Just Cellphones 37b Calypso Place Rothesay Bay Auckland
------------------------------------------------------------------------------------------------------------------------------------
Kaikoura Appliances 41 Westend Kaikoura
------------------------------------------------------------------------------------------------------------------------------------
Kilbirnie Paper Plus PO Box 14445 Kilbirnie Wellingto
------------------------------------------------------------------------------------------------------------------------------------
Lanz Home & Business Equipment PO Box 33412 Takapuna Auckland
------------------------------------------------------------------------------------------------------------------------------------
Lanz Office Equipment Limited PO Box 33412 Takapuna Auckland
------------------------------------------------------------------------------------------------------------------------------------
M R Repairs Limited PO Box 76083 Manukau City Auckland
------------------------------------------------------------------------------------------------------------------------------------
Mainpower Appliance Centre Westend Rangiora Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Mangatea Communications Limited 62 High Street Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Marlborough Electronics Limited PO Box 552 Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Mclachlans TV & Video Limited PO Box 375 Taumarunui
------------------------------------------------------------------------------------------------------------------------------------
Meikles Lifestyle Centre The Strand Whakatane
------------------------------------------------------------------------------------------------------------------------------------
Mercury Bay Electrical 49 Albert Street Whitianga
------------------------------------------------------------------------------------------------------------------------------------
Mimes Electrical PO Box 205 Tokoroa
------------------------------------------------------------------------------------------------------------------------------------
MJ & AM Kingan Limited PO Box 170 Ashburton
------------------------------------------------------------------------------------------------------------------------------------
Mobile Business Solutions Limited PO Box 68678 Newton Auckland
------------------------------------------------------------------------------------------------------------------------------------
Moirs Paper Plus PO Box 686 Nelson
------------------------------------------------------------------------------------------------------------------------------------
Monty Knight Limited PO Box 388 Kaitaja
------------------------------------------------------------------------------------------------------------------------------------
Motorola Cellular Private Bag 14943 Panmure Auckland
------------------------------------------------------------------------------------------------------------------------------------
Mt Campbell Communication Limited 108 Vanguard Street Nelson
------------------------------------------------------------------------------------------------------------------------------------
Multiline Telecommunications PO Box 108 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Nautech Electronics PO Box 82063 Highland Park Auckland
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
33
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Nelson Retravision (Sony A/C) PO Box 503 Nelson
------------------------------------------------------------------------------------------------------------------------------------
Netway Communications Limited PO Box 5653 Wellesley Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Newbolds Masterton Cr Queen & Bannister Masterton
------------------------------------------------------------------------------------------------------------------------------------
Newbolds Porirua 11 Serlby Place Porirua Wellington
------------------------------------------------------------------------------------------------------------------------------------
Newbolds Upper Hutt PO Box 40142 Upper Hutt Wellington
------------------------------------------------------------------------------------------------------------------------------------
Noel Aymes Limited 58-60 Maniapoto Street Otorohanga
------------------------------------------------------------------------------------------------------------------------------------
Novacom Systems Limited 32 View Road Glenfleld Auckland
------------------------------------------------------------------------------------------------------------------------------------
Office Communications PO Box 371 Hamilton
------------------------------------------------------------------------------------------------------------------------------------
P B Autoelectrical Limited PO Box 253 Greymouth
------------------------------------------------------------------------------------------------------------------------------------
Pakuranga Paper Plus Shop 7 Warehouse Complex
------------------------------------------------------------------------------------------------------------------------------------
Penninsula Betta Electrical PO Box 134 Whitianga
------------------------------------------------------------------------------------------------------------------------------------
Penwardens Radio & TV PO Box 325 Tokoroa
------------------------------------------------------------------------------------------------------------------------------------
Phone Link South Limited PO Box 1520 Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Phoneland PO Box 375 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Phonequip/Alarmquip Limited PO Box 7053 Sydneham Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Pinehill Office Services Paekalcareki Hill Road Rd 1 Plimmerton
------------------------------------------------------------------------------------------------------------------------------------
Pitcher Electrical Limited PO Box 107 Whangamata
------------------------------------------------------------------------------------------------------------------------------------
Quality Electronics PO Box 5326 Palinerston North
------------------------------------------------------------------------------------------------------------------------------------
Quixley Communications Limited PO Box 8179 Eden Terrace Auckland
------------------------------------------------------------------------------------------------------------------------------------
R C Auto Accessories PO Box 8485 Riccarton Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Radio Communications Limited PO Box 9430 Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Radio House PO Box 218 Taumarunui
------------------------------------------------------------------------------------------------------------------------------------
Rangitikei Electrical Limited PO Box 153 Marton
------------------------------------------------------------------------------------------------------------------------------------
Red Eagle Corporation Limited Private Bag 92811 Penrose Auckland
------------------------------------------------------------------------------------------------------------------------------------
Riccarton Paper Plus Rotherham Street Riccarton Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Rices Mersey Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Richardson Communications Limited PO Box 309 Otorohanga
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
34
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rowan Morgan Computers PO Box 601 Manurewa Auckland
------------------------------------------------------------------------------------------------------------------------------------
Silverdale Cellphones PO Box 175 Silverdale Auckland
------------------------------------------------------------------------------------------------------------------------------------
Sound Business Systems Limited PO Box 90722 Auckland Mail Centre Auckland
------------------------------------------------------------------------------------------------------------------------------------
South Island Electronics 182 Hawthornden Road Avonhead Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Southern Business Systems 14 Murdoch Street Hawera
------------------------------------------------------------------------------------------------------------------------------------
Southmark Computers (Sth Is) PO Box 8642 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Southpower Private Bag Cbristchurch
------------------------------------------------------------------------------------------------------------------------------------
Surelock Homes Limited Shop 40-41, Level 1 Lambton Square 180 Lambton Quay
------------------------------------------------------------------------------------------------------------------------------------
Sutherland Security Centre Limited PO Box 517 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Tait Communications 88 Austin Street Onekawa Napier
------------------------------------------------------------------------------------------------------------------------------------
Tait Communications 549 Te Rapa Road Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Tait Communications PO Box 3390 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Tait Communications 7 Hautonga Street Petone Wellington
------------------------------------------------------------------------------------------------------------------------------------
Team Communications 8 Ambury Court 1 Porters Avenue Eden Terrace
------------------------------------------------------------------------------------------------------------------------------------
Team Communications Unit 3, 709 Tremaine Avenue Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Telephone Services Limited 5b Benefield Street Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Teletech Communications Limited PO Box 21618 Auckland
------------------------------------------------------------------------------------------------------------------------------------
Teletronics Radio & TV Services PO Box 389 Masterton
------------------------------------------------------------------------------------------------------------------------------------
Thames Sound Shack Limited 634 Pollen Street Thames
------------------------------------------------------------------------------------------------------------------------------------
The Business Centre PO Box 2179 Wellington
------------------------------------------------------------------------------------------------------------------------------------
The Cellular Dealer Team H/O PO Box 90639 Auckland
------------------------------------------------------------------------------------------------------------------------------------
The Cellular Phone Company Limited 66 Stoddard Road Mt Roskill Auckland
------------------------------------------------------------------------------------------------------------------------------------
The Fermah Group Level One Postbank House The Strand
------------------------------------------------------------------------------------------------------------------------------------
The Mobile Office Company PO Box 38522 Howick Auckland
------------------------------------------------------------------------------------------------------------------------------------
The Office Shop PO Box 1577 Invercargill
------------------------------------------------------------------------------------------------------------------------------------
The Telephone Company PO Box 5111 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Thomas Electronics Limited PO Box 1590 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
35
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Trio Business Centre Limited PO Box 539 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Triton Cellular Network Limited PO Box 51130 Pakuranga Auckland
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications Cnr Armagh & Durham Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications 109 Lower Cameron Street Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications PO Box 2104 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications Cnr Eruera & Fenton Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications 9 Robe Street New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications Cnr Albert & Main Street Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications Cnr Castle & St Andrew Street P.O Box 6338
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications Back Of Government Life Building Whakatu Lane Nelson
------------------------------------------------------------------------------------------------------------------------------------
Ubix Communications 32 Church Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
Ubix Copy Centre PO Box 620 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Ubix Telephone Technology PO Box 9148 London Street Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Wairoa Power Limited PO Box 131 Wairoa
------------------------------------------------------------------------------------------------------------------------------------
Wanganui Motors Limited 86 Clyde Street Ohakune
------------------------------------------------------------------------------------------------------------------------------------
Wellington Business Equipment PO Box 27502 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Wensley 2 Way Radio 108 Vanguard Street Nelson
------------------------------------------------------------------------------------------------------------------------------------
Wgtn Telecommunications Limited PO Box 1272 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Whakatane Appliances Limited PO Box 301 Whakatane
------------------------------------------------------------------------------------------------------------------------------------
Wood Appliances Belmont Road Paeroa
------------------------------------------------------------------------------------------------------------------------------------
Absolute Telecommunications PO Box 15 98 Main Street Gore
------------------------------------------------------------------------------------------------------------------------------------
Abtec Installations Limited PO Box 51067 Tawa
------------------------------------------------------------------------------------------------------------------------------------
Adamson & Holland Limited PO Box 10060 Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Advanced Networks Limited PO Box 31436 Lower Hutt Wellington
------------------------------------------------------------------------------------------------------------------------------------
Air Cell Communications Spec 1237 Ada Street Hastings
------------------------------------------------------------------------------------------------------------------------------------
Air Digital Communications Adc Box 570 125 Commerce Street Kaitaia
------------------------------------------------------------------------------------------------------------------------------------
Alcom Comm Services Limited PO Box 6145 Rotorua
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
36
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Anderson Electromcs Services Limited PO Box 126 Gore
------------------------------------------------------------------------------------------------------------------------------------
Arndt Electronics 10 Orowaiti Street Westport
------------------------------------------------------------------------------------------------------------------------------------
Ashley Electronics Limited PO Box 212 14 Bank Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
Basil North Limited PO Box 225 Mosgiel
------------------------------------------------------------------------------------------------------------------------------------
Baylink Communications 6 Commercial St Takaka
------------------------------------------------------------------------------------------------------------------------------------
Beeby Electronics PO Box 192 James Street Balclutha
------------------------------------------------------------------------------------------------------------------------------------
Blenheim Toyota PO Box 802 21 Main Street Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Campbell Communications 93 Broadway Kaikohe
------------------------------------------------------------------------------------------------------------------------------------
Capital Communications Limited PO Box 50299 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Car Conceptz 97 Amohau Street Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Cellfax Communication Wholesalers PO Box 17270 Greenlane Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone Warehouse 290 Ti Rakau Drive East Tamaki Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone Warehouse PO Box 9800 Newmarket Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone Warehouse Crn St Lukes & Sandringham Rd St Lukes Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellular & Office Services PO Box 1435 Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Chris White Auto-Electrical PO Box 181 Waipukurau
------------------------------------------------------------------------------------------------------------------------------------
Coastal Communications Limited PO Box 492 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Complete Telecommunications PO Box 187 94 Arawa Street Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Computerland Hawkes Bay PO Box 2091 Stortford Lodge Hastings
------------------------------------------------------------------------------------------------------------------------------------
Comtel Systems Limited PO Box 644 Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Cosyn Commercial Group PO Box 331474 Auckland
------------------------------------------------------------------------------------------------------------------------------------
Counties Power Private Bag 4 Pukekohe Auckland
------------------------------------------------------------------------------------------------------------------------------------
Dive Communication Systems 14 Burnton Street Lower Hutt
------------------------------------------------------------------------------------------------------------------------------------
Easiphone PO Box 1196 37b Bright Street Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Eastland Auto Electrical PO Box 1163 384 Childers Road Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Electronic Machine Services Limited PO Box 2182 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Excel Communications Limited PO Box 1810 87-89 Hinemoa Street Rotorua
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
37
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fast Talk Communications PO Box 3054 ChristChurch
------------------------------------------------------------------------------------------------------------------------------------
GDC Northland PO Box 234 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Gracetek Telecommunications PO Box 1460 105 Leet Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Harvest Electronics PO Box 446 Masterton
------------------------------------------------------------------------------------------------------------------------------------
Hewson Electronics PO Box 13 Gore
------------------------------------------------------------------------------------------------------------------------------------
Ian Young Paging 15 Glenfell Place Auckland
------------------------------------------------------------------------------------------------------------------------------------
Jayar Scraggs Contractors Limited 13 Commerce Street Whakatane
------------------------------------------------------------------------------------------------------------------------------------
Kaimai Electronics 2 Mangwhero Road Matamata
------------------------------------------------------------------------------------------------------------------------------------
Kapiti Communications Limited PO Box 49 120 Rimu Road Paraparumu
------------------------------------------------------------------------------------------------------------------------------------
Kerikeri Communications 35 Hobson Avenue Kerikeri
------------------------------------------------------------------------------------------------------------------------------------
Lamberts Business Centre PO Box 164 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision PO Box 1335 157 Rangitikei Street Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Levin Communication Services PO Box 281 Levin
------------------------------------------------------------------------------------------------------------------------------------
Mainland Communications Limited PO Box 350 229 Thames Street Qamaru
------------------------------------------------------------------------------------------------------------------------------------
Man Phone Rentals NZ Limited PO Box 8151 Symonds Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Microwave Systems Limited PO Box 26 044 Newlands Wellington
------------------------------------------------------------------------------------------------------------------------------------
Mills Chapman Communications PO Box 627 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Mobile Communciations Limited PO Box 1119 Taupo
------------------------------------------------------------------------------------------------------------------------------------
Murray Gillespie Limited PO Box 4296 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Oamaru Paper Plus 181 Thames Street Oamaru
------------------------------------------------------------------------------------------------------------------------------------
Obertech Group PO Box 10 58 Glover Rd Hawera
------------------------------------------------------------------------------------------------------------------------------------
Office Automation PO Box 13080 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Otago Central Telecomms 8 Skird St Alexandra
------------------------------------------------------------------------------------------------------------------------------------
Otago Electrical & Comm PO Box 676 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Pacific Network Communications PO Box 1500 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Pacific Telephones PO Box 22192 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Paging Services Southern 30 Church Street Mosgiel Dunedin
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
38
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Powercom Business Centre PO Box 631 Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Prolite HB Limited PO Box 14163 813 N Karamu Road Hastings
------------------------------------------------------------------------------------------------------------------------------------
Pro-Stall Communications PO Box 877 429 Queen Street Masterton
------------------------------------------------------------------------------------------------------------------------------------
Pukekohe Hi Fi & TV Limited 50 King Street Pukekohe
------------------------------------------------------------------------------------------------------------------------------------
Radcom Sales PO Box 9574 Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Rangiora Toyota PO Box 326 Rangiora
------------------------------------------------------------------------------------------------------------------------------------
Rent-A-Phone/Cellular World PO Box 62526 Central Park Auckland
------------------------------------------------------------------------------------------------------------------------------------
Ruralcom Electronics Limited PO Box 422 Nelson
------------------------------------------------------------------------------------------------------------------------------------
Safe & Sound Car Stereo/Alarms 49 Anzac Parade Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Selective Communications Group PO Box 8798 Symonds Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Smart Phones Limited 407 Cameron Road Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Smart Phones Limited 43 Ruapehu Street Taupo
------------------------------------------------------------------------------------------------------------------------------------
South Pacific Electronics Limited 211-213 King Street Pukekohe Auckland
------------------------------------------------------------------------------------------------------------------------------------
Southland Electronics PO Box 1210 Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Star Communications Limited PO Box 40326 Glenfleld Auckland
------------------------------------------------------------------------------------------------------------------------------------
Steelcon Electronics `95 PO Box 1166 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Sure Communications PO Box 100792 Nsmc Auckland
------------------------------------------------------------------------------------------------------------------------------------
Surelock Homes Kapiti Limited PO Box 371 Paraparaumu
------------------------------------------------------------------------------------------------------------------------------------
Tait Communications PO Box 1185 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Teamwork Telecommunications PO Box 3410 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Teletronics PO Box 389 Masterton
------------------------------------------------------------------------------------------------------------------------------------
Thames Communications PO Box 642 107 Brunton Street Thames
------------------------------------------------------------------------------------------------------------------------------------
Thames Television Systems Limited PO Box 71 434 Pollen Street Thames
------------------------------------------------------------------------------------------------------------------------------------
The Otago Telephone Co PO Box 5111 Dunedin
------------------------------------------------------------------------------------------------------------------------------------
The Phone Shop (Timaru) Box 439 Timaru
------------------------------------------------------------------------------------------------------------------------------------
The Telephone Box PO Box 2029 95 Customhouse Quay Wellington
------------------------------------------------------------------------------------------------------------------------------------
The Telephone Box NZ Limited PO Box 2113 418 High Street Lower Hutt
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
39
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Trilogy Business Systems Limited Private Bag 3323 Auckland 29 Queen Street Levin
------------------------------------------------------------------------------------------------------------------------------------
TRS Communication Systems PO Box 32010 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Walker Data Vision Limited PO Box 12343 Penrose Auckland
------------------------------------------------------------------------------------------------------------------------------------
Wanaka Books & Toys PO Box 243 23 Helwick St Wanaka
------------------------------------------------------------------------------------------------------------------------------------
Wanganui Motors PO Box 86 Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Wilsons Homeware 35 Camp Street Queenstown
------------------------------------------------------------------------------------------------------------------------------------
Mod Comms PO Box 38286 Howick Auckland
------------------------------------------------------------------------------------------------------------------------------------
Advance Better Communications PO Box 4164 87 Molesworth Street New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Bay Communications PO Box 2333 111 Maraekakaha Road Hastings
------------------------------------------------------------------------------------------------------------------------------------
Bay Communications Limited PO Box 391 66 Carlyle Street Napier
------------------------------------------------------------------------------------------------------------------------------------
Communications Products Limited PO Box 14141 13a Mirrielees Road Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Communications Specialists Limited PO Box 5696 Crn Police & Cumberland Sts Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Comworth Systems Limited PO Box 100120 Nsmc 133 Wairau Rd Glenfleld Auckland
------------------------------------------------------------------------------------------------------------------------------------
Comworth Systems Limited PO Box 4485 Unit 1/100 Fitzgerald Avenue Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Comworth Systems Limited PO Box 38940 Petone 136 Hutt Rd Petone Wellington
------------------------------------------------------------------------------------------------------------------------------------
Concord Technologies PO Box 1514 36 Fairy Springs Road Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Concord Technologies PO Box 10077 639 Te Rapa Street Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Hart Candy Communications PO Box 7145 Wellesley St 217-223 Hobson Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Hart Candy Communications Limited PO Box 7145 Wellesley St3 44a Lambie Dr Manakau City Auckland
------------------------------------------------------------------------------------------------------------------------------------
Jackson & Wills Limited PO Box 1100 239 Dee Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Manawatu TV & Sound PO Box 361 Cnr Pitt & Cuba Street Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Nelspecs Limited PO Box 414 1/124 Tahunaui Drive Nelson
------------------------------------------------------------------------------------------------------------------------------------
T L Parker 36 Sheffield Cres Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Whangarei Electrical Services PO Box 1691 24 Herekino Street Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Ashworths Paper Plus 74 Commerce Street Kaitaia
------------------------------------------------------------------------------------------------------------------------------------
Barrington Mall Paper Plus PO Box 33021 Barrington Mall Christchurch
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
40
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Barry & Hastings Paper Plus PO Box 94 Matamata
------------------------------------------------------------------------------------------------------------------------------------
Bob Wichman Retravision-29041 PO Box 23234 Papatoetoe Auckland
------------------------------------------------------------------------------------------------------------------------------------
Broadway Paper Plus PO Box 244 Kaikohe
------------------------------------------------------------------------------------------------------------------------------------
Brokenshires Paper Plus 554 Pollen Street Thames
------------------------------------------------------------------------------------------------------------------------------------
Bushnells Paper Plus PO Box 626 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Cawseys Paper Plus PO Box 4 Dannevirke
------------------------------------------------------------------------------------------------------------------------------------
Central Paper Plus PO Box 11 Greymouth
------------------------------------------------------------------------------------------------------------------------------------
Coastlands Paper Plus Coastland Shopping Mall Paraparaumu
------------------------------------------------------------------------------------------------------------------------------------
Colombo Paper Plus PO Box 9063 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Conways Paper Plus PO Box 365 Rangiora
------------------------------------------------------------------------------------------------------------------------------------
Corrigalls Paper Plus PO Box 328 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Deacons Retravision 45 Horomatangi Taupo
------------------------------------------------------------------------------------------------------------------------------------
Dimocks Retravision- 14492 PO Box 577 Hawera
------------------------------------------------------------------------------------------------------------------------------------
Dimocks Retravision- 14497 237 Broadway Stratford
------------------------------------------------------------------------------------------------------------------------------------
Doug Morris Retravision-21741 PO Box 50 Huntly
------------------------------------------------------------------------------------------------------------------------------------
Doug Morris Retravision-21741 300 Barton Street Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Doug Morris Retravision-2174lc 63 Victoria Street Cambridge
------------------------------------------------------------------------------------------------------------------------------------
Downtown Paper Plus PO Box 75 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Duckworths Retravision- 14893 Gloucestor Street Tardale Napier
------------------------------------------------------------------------------------------------------------------------------------
Duckworths Retravision- 14893 PO Box 532 Taradale Napier
------------------------------------------------------------------------------------------------------------------------------------
Echlins Paper Plus PO Box 36 Morrmnsville
------------------------------------------------------------------------------------------------------------------------------------
Feilding Paper Plus 1 Manchester Street Feilding
------------------------------------------------------------------------------------------------------------------------------------
Flair Retravision-23875 Cr Amohia&Pukuatu Street Hinemoa Centre Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Ford Motor Co Limited Private Bag 76912 Manukau City Auckland
------------------------------------------------------------------------------------------------------------------------------------
Foster Brook Paper Plus PO Box 3 Hastings
------------------------------------------------------------------------------------------------------------------------------------
Foster Brook Paper Plus PO Box 40 Napier
------------------------------------------------------------------------------------------------------------------------------------
Fountain City Paper Plus Shop 11, Downtown Hamilton
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
41
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Goldfields Paper Plus Goldfields Shopping Centre Queen Street Thames
------------------------------------------------------------------------------------------------------------------------------------
Good Guys Retravision- 16495 PO Box 18065 Glen limes Auckland
------------------------------------------------------------------------------------------------------------------------------------
Grahams (Takapuna) Paper Plus 16 Hurstmere Road Takapuna Auckland
------------------------------------------------------------------------------------------------------------------------------------
Grahams Paper Plus Leith Place Tokoroa
------------------------------------------------------------------------------------------------------------------------------------
Grahams Paper Plus PO Box 175 Waxpukurau
------------------------------------------------------------------------------------------------------------------------------------
Greenwoods Retravision- 16675 PO Box 91 Westport
------------------------------------------------------------------------------------------------------------------------------------
Greymouth Retravision- 21090 85 Mackay Street Greymouth
------------------------------------------------------------------------------------------------------------------------------------
Guys Paper Plus PO Box 171 Te Awamutu
------------------------------------------------------------------------------------------------------------------------------------
Haymans Paper Plus PO Box 46 Marton
------------------------------------------------------------------------------------------------------------------------------------
Highpoint Paper Plus Shop 18 Highpoint Shopping Centre Birkenhead
------------------------------------------------------------------------------------------------------------------------------------
Horizon Paper Plus 228 High Street Lower Hutt
------------------------------------------------------------------------------------------------------------------------------------
Howson Retravision- 17685 PO Box 61 Wellsford
------------------------------------------------------------------------------------------------------------------------------------
Howson Retravision- 17685 4/43 Queens Street Warkworth
------------------------------------------------------------------------------------------------------------------------------------
Hubands Retravision PO Box 646 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Hubands Retravision- 17900 PO Box 646 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Hubands Retravision- 17900 76 Victoria Street Dargaville
------------------------------------------------------------------------------------------------------------------------------------
Huggards Retravision- 18007 PO Box 3011 Fitzroy New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Hughsons Paper Plus PO Box 450 Hawera
------------------------------------------------------------------------------------------------------------------------------------
Kapiti Retravision PO Box 71 Paraparaumu Auckland
------------------------------------------------------------------------------------------------------------------------------------
Kerikeri Paper Plus Main Road Kerikeri
------------------------------------------------------------------------------------------------------------------------------------
Kings Paper Plus 39 Maniapoto Street Otorohanga
------------------------------------------------------------------------------------------------------------------------------------
Laniasons Paper Plus 8 Te Mata Road Havelock North
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 86 Broadway Avenue Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 11 Main Street Foxton
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 234 Broadway Marton
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 78 High Street Bulls
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 97-99 Fergusson Street Feilding
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
42
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Leader & Watt Retravision 211 Oxford Street Levin
------------------------------------------------------------------------------------------------------------------------------------
Leader & Watt Retravision 171 Victoria Avenue Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Leisuretime Paper Plus 27 Heu Heu Street Taupo
------------------------------------------------------------------------------------------------------------------------------------
Manners Street Paper Plus PO Box 11625 Wellington
------------------------------------------------------------------------------------------------------------------------------------
Masterton Paper Plus 110 Queen Street Masterton
------------------------------------------------------------------------------------------------------------------------------------
Masterton Retravision- 13528 PO Box 136 Masterton
------------------------------------------------------------------------------------------------------------------------------------
Mccarthys Paper Plus PO Box 7170 Taradale Napier
------------------------------------------------------------------------------------------------------------------------------------
Mcleods Paper Plus PO Box 276 Levin
------------------------------------------------------------------------------------------------------------------------------------
Meikles Church Street Opotiki
------------------------------------------------------------------------------------------------------------------------------------
Meikles Limited Riverslea Shopg Mall Edgecumbe
------------------------------------------------------------------------------------------------------------------------------------
Meildes Retravision- 21210 The Strand Whakatane
------------------------------------------------------------------------------------------------------------------------------------
Moirs Paper Plus 243 Queen Street Richmond
------------------------------------------------------------------------------------------------------------------------------------
Morris & Ockhuysen Retravision 31 Tasman Street Opunake
------------------------------------------------------------------------------------------------------------------------------------
New Brighton Paper Plus PO Box 716 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
NZ Automobile Association AA Distribution Centre PO Box 100462 Glenfield
------------------------------------------------------------------------------------------------------------------------------------
Opotild Paper Plus PO Box 37 Opotiki
------------------------------------------------------------------------------------------------------------------------------------
Orewa Paper Plus Moana Court Orewa
------------------------------------------------------------------------------------------------------------------------------------
Paeroa Paper World PO Box 129 Paeroa
------------------------------------------------------------------------------------------------------------------------------------
Paper Plus 691 Manukau Rd Royal Oak Auckland
------------------------------------------------------------------------------------------------------------------------------------
Pennys Paper Plus Chartwell Square Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Phil Booth Retravision- 11710 85 Jellicoe Street Te Puke
------------------------------------------------------------------------------------------------------------------------------------
Plaza Paper Plus K-Mart Plaza Porirua Wellington
------------------------------------------------------------------------------------------------------------------------------------
Poppelwells Retravision-28428 PO Box 73 Oneroa Waiheke Island
------------------------------------------------------------------------------------------------------------------------------------
Prestons Paper Plus 234 George Street Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Prestons Paper Plus 32 Irk Street Gore
------------------------------------------------------------------------------------------------------------------------------------
Prestons Paper Plus 56 Esk Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Pukekohe Paper Plus PO Box 75 Pukekohe
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
43
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Queen Street Paper Plus 128 Queen Street Newmarket Auckland
------------------------------------------------------------------------------------------------------------------------------------
Reliance Retravision 174 High Street Motueka
------------------------------------------------------------------------------------------------------------------------------------
Rices Retravision-24864 Cambridge Place Arcade Corner Tay & Esk Streets Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Rices Retravision-24864 Trust Bank Arcade Corner Esk & Don Streets Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Rices Retravision-24864 Main Street Gore
------------------------------------------------------------------------------------------------------------------------------------
Royal Oak Paper Plus The Mall 691 Manukau Road Royal Oak
------------------------------------------------------------------------------------------------------------------------------------
Ryders Paper Plus 35 Clyde Street Balclutha
------------------------------------------------------------------------------------------------------------------------------------
Simister Retravision-9050 575 Cameron Road Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Smith & Church Retravision PO Box 434 Ashburton
------------------------------------------------------------------------------------------------------------------------------------
Spinella Retravision-26160 PO Box 31051 Milford Auckland
------------------------------------------------------------------------------------------------------------------------------------
Stevens Retravision-26603 Rosemont Road Waihi
------------------------------------------------------------------------------------------------------------------------------------
Stevensons Paper Plus 153 High Street Motueka
------------------------------------------------------------------------------------------------------------------------------------
Strawbridges Retravision-26875 319 Alexander Street Te Awamutu
------------------------------------------------------------------------------------------------------------------------------------
Sullivan & Spillane Retravision 97 King Street Temuka
------------------------------------------------------------------------------------------------------------------------------------
Sullivan & Spillane Retravision 284 Stafford Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
Sunnynook Paper Plus PO Box 100328 Nsmc Auckland
------------------------------------------------------------------------------------------------------------------------------------
Target Paper Plus Northlands Shopping Centre Christchurch
------------------------------------------------------------------------------------------------------------------------------------
The Forum Paper Plus The Forum Market Place Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Tutanekai Paper Plus 432 Tutanekai Street Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Van Dyk Retravision-28088 PO Box 201 Putaruru
------------------------------------------------------------------------------------------------------------------------------------
Victoria Square Paper Plus 750 Colombo Street Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Vidtek Electrix PO Box 1307 Gisborne
------------------------------------------------------------------------------------------------------------------------------------
Waiuku Paper Plus 9 Bowen Street Waiuku
------------------------------------------------------------------------------------------------------------------------------------
Warkworth Paper Plus 12 Queen Street Warkworth
------------------------------------------------------------------------------------------------------------------------------------
Winloves Retravision-29114 PO Box 198 Waipukurau
------------------------------------------------------------------------------------------------------------------------------------
Winloves Retravision-29114 Centre Court Waipawa
------------------------------------------------------------------------------------------------------------------------------------
Woods Paper Plus 186 Stafford Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
44
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Dick Smith Electronics-H/O Private Bag 102903 Northshore Mail Centre Auckland
------------------------------------------------------------------------------------------------------------------------------------
Herkt Retravision- 17200 PO Box 615 Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Nelson Retravision- 16900 PO Box 503 Nelson
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited PO Box 4677 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Dunedin 283 Moray Place Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Invercargill 81 Yarrow Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Mt Maunganui Bayfair Shopping Mall Mt Maunganui
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Napier 323 Hastings Street Napier
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Plaza Shop 17a The Plaza Palmerston North
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Rotorua Hinemoa Centre 20 A Amohia Street Rotorua
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Timaru 251 Stafford Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
Noel Leeming Limited Wanganui C/O Trafalgar Square Taupo Quay Wanganui
------------------------------------------------------------------------------------------------------------------------------------
Rices Retravision-24864 Private Bag 90112 Bond Place Invercargill
------------------------------------------------------------------------------------------------------------------------------------
RTS-Retail Trading Services Limited Private Bag 76925 Manukau City Auckland
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Comm (Service) Limited PO Box 25073 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Comms Dunedin Limited Cnr Princess & Moray Wilson Neill House Dunedin
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communication 336 High Street Lower Hutt
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 250 East Street Ashburton
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 62 High Street Blenheim
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 120 Hereford Street Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 70 Moorehouse Avenue Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 105 Victoria St Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications Shop 24 Riccarton Mall Riccarton Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 68 Esk Street Invercargill
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 106 Station Road Napier
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications Crn Hardy & Trafalgar Streets
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
45
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Ben Rumble Communications Shop 27a, The Plaza, The Square North Palinerston North
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications Shop 53 North City Plaza Porirua
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 239 Stafford Street Timaru
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 23 Kent Street Wellington
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications 114 Lambton Quay Wellington
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications PO Box 690 Queenstown
------------------------------------------------------------------------------------------------------------------------------------
Ben Rumble Communications Limited PO Box 25073 Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City PO Box 535 Taupo
------------------------------------------------------------------------------------------------------------------------------------
Celiphone City (Cook St) Limited PO Box 90639 Amsc Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Hamilton) Limited PO Box 10405 Te Rapa Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Manukau) Limited 10 Sharkey Street Manukau City Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Tauranga) Limited PO Box 21 Tauranga
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Whangarei) PO Box 726 Whangarei
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City Henderson 5 Edsel Street Henderson Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City New Plymouth PO Box 129 New Plymouth
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Head Office) 22 Fanshaw Street Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Lambie) 32c Lambie Drive Manakau Auckland
------------------------------------------------------------------------------------------------------------------------------------
Cellphone City (Takapuna) 135 Wairau Road Takapuna Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (New Lynn) Unit 4/1 Rata Street New Lynn Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Beach Road) 77 The Strand Pamell Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Chch) In Levene Extreme 250 Moorehouse Avenue Christchurch
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Glenfleld) Crn Wairau & View Rd Glenfield Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Greenlane) 213 Greatsouth Road Greenlane Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (H/O-Hobson St) PO Box 12188 Penrose 150 Hobson St Auckland
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
46
<TABLE>
<CAPTION>
DEALER ADDRESS
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rocom Comm (Hamilton) Shop 19, Kmart Plaza Corner Bryce & Tristram Hamilton
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Mid City Wellington) Shop 14 Mid City Centre Manners Wellington
Street
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Mt Wellington) 501 Mt Wellington Highway Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Newmarket) In Levene Extreme, 359 Broadway Newmarket Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Botany Downs) In Levenes 501 Ti Rakau Drive East Tamaki Auckland
------------------------------------------------------------------------------------------------------------------------------------
Rocom Comm (Queensgate) Shop 5,Queensgate Centre Wellington
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
47
SCHEDULE B
MANUFACTURERS
1. Audiovox Pacific (NZ) Limited;
2. Ericsson Communications Limited;
3. Motorola New Zealand Limited; and
4. Nokia Mobile Phones Limited.
<PAGE>
48
SCHEDULE C
QUALIFYING CRITERIA FOR MANUFACTURERS
1. Manufacturer's Equipment provides functionality and features at a price
that is competitive in the NZ market.
2. Manufacturer is ISO accredited.
3. Manufacturer provides a satisfactory warranty period on its Equipment.
Standard acceptable warranty periods are:
(a) 12 month warranty period on transceiver;
(b) 6 month warranty on accessories.
4. Manufacturer provides acceptable credit and payment terms.
5. NZ based manufacturer representation exists.
6. Collateral and merchandising material is available to sales channels at
the same time as the relevant Equipment.
7. Manufacturer has a NZ based servicing team/service agent.
8. Manufacturer provides a maximum 8 week turn around on forecasted orders.
9. Manufacturer's Equipment conforms to PTC standards and the PTC approval
process.
10. Manufacturer's Equipment meets the technical standards and performance
requirements of Telecom's network.
11. Manufacturer to supply:
(a) electronic copy of ESN's shipped for IS- 136 hardware;
(b) notification of any new software releases prior to shipment of
hardware;
(c) ESN and serial number barcodes along with manufacturer part
numbers on each unit of hardware;
(d) Telecom purchase order numbers on packing slips with every
shipment;
(e) notification of any changes in configuration prior to shipment of
hardware.
12. Telecom ultimately reserves the right to select or not select Equipment
manufacturers for the purpose of Equipment supply to the market place.
<PAGE>
49
SCHEDULE D
PERMITTED SERVICES TO MANUFACTURERS
TASK AGREED PRICE
--------------------------------------------------------------------------------
Handset Reconfigurations
o Handling base fee plus o $1.00/Handset
o Insert/remove additional o $0.50/Handset
products/general repackaging
o Insert stickers and/or o $0.25/Handset
collateral into phone pack
o Prenamming o $0.50/Handset
--------------------------------------------------------------------------------
Collateral and Merchandising
o Holding and distributing o To be agreed with Manufacturers
materials (such as hats, posters) when required.
to the Dealers as required
(a passive logistic function).
--------------------------------------------------------------------------------
Reporting
o Provide Manufacturer with market o To be agreed with Manufacturers
share by category of Equipment, but when required.
only where there are 3 or more
Manufacturers providing Equipment
in that category.
--------------------------------------------------------------------------------
Notes:
1. Above pricing assumes 50 items handled at one time. Prices could vary for
lesser numbers.
2. A discount of 10% applies on the above prices where volume handled
exceeds 500 units at one time.
3. A discount of 15% applies on the above prices where volumes handled
exceeds 1000 units at any time.
4. 10 working days notice is required to arrange product alterations.
<PAGE>
50
SCHEDULE E
HANDLING FEES
A. HANDSET HANDLING FEE
o Uses Excel Spreadsheet "Phones@120K Units". An example of this is set out
below:
<PAGE>
51
Phones Only Per Unit Cost @ 120,000 units per annum
<TABLE>
<CAPTION>
Total Profit% Consumer Business Total/M
<S> <C> <C> <C> <C> <C>
Quantity Units/annum 120,000 48.000 72,000
% Consumer 40%
% Business 60%
Quantity Units /m 10,000 4,000 6,000 10,000
Assume 60% of units 60% 100% 37%
Quantity Invoices /m 6,220 4,000 2,220 6,220
Phone Cost - Consumer $200 $200
Phone Cost - Business $300 $300
RMA Returns 0.042
Variable Cost/unit $2.39 $2.39 $2.39
Fined Cost/Unit $3.78
Net Profit 1.35% 1.35% 1.35%
1.33%
Tax @ 33% 0.89% 0.44%
Consumer Business Average
Fixed Cost $15,117.00 $22,675.30 $37,792.50
Variable Cost $13,422.00 $10,467.74 $23,939.74
Sub Total - Total Costs $28,589.00 $33,143.24 $61,722.24
Overbead/Unit $7.15 $5.52 $6.17
Phone Cost $200.00 $300.00 $260.00
Sub Tot/Unit $207.15 $305.52 $266.17
Total Invoice to Telecom $209.94 $309.65 $269.27
(i) Unit Price to Telcom $9.94 $9.65 $9.77
Consumer Business Average
Order Processing Functions Order input 14.05% $1.40 $1.36 $1.37
Distribution Functions Inwards Goods 1.46% $0.15 $0.14 $0.14
Namming
Pick & Process 2.93% $0.29 $0.28 $0.29
Outwards Goods 2.20% $0.22 $0.21 $0.21
Freight 33.88% $3.37 $3.27 $3.31
Stock Integrity 2.05% $0.20 $0.20 $0.20
Vendor Management Purchase orders 4.10% $0.41 $0.40 $0.40
Reporting 1.32% $0.13 $0.13 $0.13
After Sales Functions Return Courier 1.78% $0.18 $0.17 $0.17
RMA/Warranty 2.05% $0.20 $0.20 $0.20
Group Functions Warehousing 2.66% $0.26 $0.26 $0.26
Group Overhead 17.02% $1.69 $1.64 $1.66
Sub Total 1 Cost Comparison
to Telecom 85.51% $8.50 $8.25 $8.35
Credit Control Application Processing 1.05% $0.10 $0.10 $0.10
Credit checking 1.05% $0.10 $0.10 $0.10
Creditor Management 3.16% $0.31 $0.31 $0.31
Debtor Management 3.95% $0.39 $0.38 $0.39
Coordinator/Administrator 5.27% $0.52 $0.51 $0.51
(ii) Price to Telecom as per (i)
with finance team and
Telecom coordinator included 100.00% $9.94 $9.65 $9.77
Communica $4,000 +
$2,800/m = $3,134 - $450
existing = $2,684/m*12/per unit $0.11 $0.16 $0.27
(iii) Sub Total (ii) Costs plus
communication costs $10.05 $9.81 $9.91
Vendor Credit Terms - 30 days 14% x 60-30 days on $250 av cost $2.88 $2.88 $2.88
(iv) Sub Total (iii) Costs
plus Vendor Credit Terms
Allocation - 30 days $12.93 $12.69 $12.78
Vendor Credit Terms - 45 days 14% x 60-45 days on $250 av cost $1.44 $1.44 $1.44
(v) Sub Total (iv) Costs plus
Vendor Credit Terms
Allocation - 45 days $11.49 $11.25 $11.34
</TABLE>
<PAGE>
52
B. WORKING CAPITAL COSTS
o No adjustment shall be made in respect of Equipment supplied by a
Manufacturer who allows 60 or more days for payment from invoicing.
o In respect of Manufacturers who allow less than 60 days for payment from
invoicing, then the permitted percentage adjustment shall be calculated on
the following basis:
A = B/365 x (60-C)
Where:
A = the permitted percentage adjustment.
B = the average Westpac Banking Corporation indicator lending
rate during the previous Quarter, plus 3%;
C = the average number of days allowed by the relevant
Manufacturer for payment.
C. ADJUSTMENT TO PRICE OF SUPPLY
AHF(FS) = (FS x HF(FS)) - (HF(A) - HF(F))
-----------------------------
FS
Where
AHF(OQ) = by the relevant the Adjusted Handling Fee for the Forecast
Sales for the next Quarter.
FS = the Forecast Sales for the next Quarter.
HF(FS) = the Handling Fee for the Forecast Sales as shown in the
relevant table in this [Schedule E].
HF(A) = the aggregate actual Handling Fees charged by STG in the
previous Quarter.
HF(F) = the aggregate Handling Fees forecast that should have been
charged by STG in the previous Quarter, based on the actual
sales of Equipment for that Quarter.
Where each of the above is calculated in accordance with the spreadsheet
referred in Part A of this Schedule.
<PAGE>
53
SCHEDULE F
SERVICE LEVELS
PART A: DEALER SERVICE LEVELS
o All orders placed by the appropriate time shown in the table below for
delivery to a particular address must delivered by the time set out below.
Order Time Delivery address Required delivery time frame
---------------------------------------------------------------------------
2.00pm Auckland Same day delivery*
10.00am National Same day delivery*
4.00pm National Next da delive
---------------------------------------------------------------------------
* Urgent deliveries - Dealer pays incremental delivery costs over
standard delivery costs.
o Note: Dealer will be permitted a reasonable amount of additional time for
high volume orders.
PART B: CUSTOMER SERVICE LEVELS
o All Customer orders are to be delivered within 24 hours of communication of
order to STG, except where:
o Customer requests otherwise; or
o at the time that delivery is attempted, the Customer is not available,
in which case the delivery shall take place as soon as practicable
thereafter.
o All customer orders via ICMS must be processed by STG in its systems, its
systems information updated, and the order must be staged on to the next
ICMS work group, within four hours of receipt of the order.
<PAGE>
54
SCHEDULE G
WEEKLY AND MONTHLY REPORTING REQUIREMENTS
Information shall be supplied on a weekly and monthly basis, in such format as
is reasonably requested by Telecom, on:
o STG's stock levels at the date of the report;
o total volumes of stock levels sold, including details on:
o Electronic Serial Number (ESN) in hexadecimal format;
o Unique stock identifier (Stock Code);
o Debtor and delivery address fields by product type that product has
been dispatched to;
o Date of dispatch and order number;
o Dealer code;
o Storage report - date product forecasted;
- date product received by STG;
o Number of returns - product type, debtor and delivery address;
o Number of out of box failures by product type;
o Updated information on new stock codes and configurations as new product is
introduced into the market place;
o Performance measures of courier company delivery times, successful/
unsuccessful weekly and monthly.
o STG's compliance with the service levels in [Schedule F];
o STG's compliance with the payment terms of agreements with Manufacturers;
o The accuracy of the forecasting and order process.
The above information shall be reported on separately for Telecom to Go
connections.
