EXHIBIT 10.11

Note:   Portions of this exhibit indicated by “[*]” are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of this Company’s confidential treatment
request.

PRODUCT SUPPLY AGREEMENT

THIS PRODUCT SUPPLY AGREEMENT (“Agreement”) is made and entered into as of the
23rd day of December, 2003 (“Effective Date”) by and between Airspan Networks,
Inc., a corporation organized under the laws of the Sate of Washington (“Buyer”)
and Nortel Networks Limited, a corporation organized under the laws of Canada
(“Nortel Networks”).

RECITALS

WHEREAS, Nortel Networks and the Buyer are parties to that certain Purchase and
Sale Agreement, dated as of December 23, 2003 (“Purchase Agreement”), pursuant
to which certain assets of Nortel Networks’ Fixed Wireless Access Business are
being purchased by the Buyer;

WHEREAS, in connection with such purchase, the Buyer wishes to engage Nortel
Networks and certain of its Affiliates to provide certain Services (as
hereinafter defined);

WHEREAS, although Nortel Networks and its Affiliates are not in the business of
providing such Services to unaffiliated entities, Nortel Networks is willing to
provide the Services, or to cause one of its Affiliates or a third party to
provide the Services, that Nortel Networks and its Affiliates use in the
operations of their own businesses, to the Buyer and the Buyer Subsidiaries, for
the convenience of the Buyer, under the terms and conditions specified herein;
and

WHEREAS, it is a condition to the consummation of the transactions contemplated
by the Purchase Agreement that Nortel Networks and the Buyer enter into this
Agreement;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.0     THE SERVICES

1.1     Definitions

Unless otherwise defined herein, capitalized terms used herein have the meanings
ascribed to such terms in the Purchase Agreement.

“Base Station Circuit Pack” shall mean a FWA base station unit sub-assembly
listed on Exhibit 1 hereto.

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“Base Station Product” shall mean a FWA base station unit listed in Exhibit 1
hereto.

“BOM” means bill of materials.

“Business Case” means the information set forth in Schedule D to the Purchase
Agreement.

“Calgary Facility” means that Calgary Westwinds facility located at 5111 47th
Street North East, Calgary, Alberta, Canada.

“End User(s)” means a person or entity that acquires FWA Products for its
internal business use and not for resale.

“FWA Product(s)” means the Base Station Products, the Base Station Circuit
Packs, and the RSS Products specified in Exhibit 1 hereto that Nortel Networks
is authorized by the Buyer to acquire and to sell to the Buyer.

“Guadalajara Facility” means Solectron’s Guadalajara, Mexico facility.

“Milpitas Facility” means Solectron’s Milpitas, California facility.

“Order Management Rate” means One Hundred and Eighty-eight Thousand dollars
(US$188, 000.00) per person per year or Fifteen Thousand Six Hundred Sixty-six
Dollars (US$15,666.00).

“Order Management Services” means purchase order placement, accounts payable and
accounts receivable services associated with accepting purchase orders from the
Buyer and placing them upon Solectron and Tier 2 Suppliers and any associated
services as required.

“Rework” means those services associated with putting a Rework Product in, or
restoring it to, conformance with the Specification.

“Rework Product” means a FWA Product in which, during the Warranty Period and
before such FWA Product is shipped to an End-User, Nortel Networks or the Buyer
discovers a defect or non-conformance to the Specification caused by the Calgary
Facility, Solectron, Solectron’s contractor or Solectron’s supplier.

“RSS Product” shall mean a FWA residential subscriber service unit listed in
Exhibit 1 hereto.

“Service(s)” means purchasing services and FWA Product return management for
rework services that Nortel Networks has agreed to undertake for the Buyer with
regard to the FWA Products only.

“Solectron” means Solectron Corporation, its Subsidiaries and Affiliates.

“Specification” means functional information and technical information relating
to a FWA Product, and may include the BOM, test procedures, functional and
quality goals, assembly documentation, circuit board art work, Gerber files,
assembly and fabrication drawings, schematics, other design documents, programs,
business plan, manufacturing processes and

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related services, as applicable, as in effect between Nortel Networks and
Solectron as of the Closing.

1.2     Parties

For the convenience of the Parties hereto or any other reason, the Parties agree
that the delivery and acceptance, respectively, of Services under this Agreement
may be directly by the Parties hereto, and/or indirectly through an Affiliate of
such Party.  The entities that deliver and accept any such Service shall, upon
such delivery and acceptance, become parties to this Agreement as of such date,
as fully and completely as if they had executed this Agreement on the date
hereof.  Such delivery and acceptance of such Service shall create contractual
rights and obligations under this Agreement solely between the entity that
delivers such Service and the entity that accepts it.

Additionally, in the case of Nortel Networks, certain Services may be provided
by a third-party provider with whom Nortel Networks or a Nortel Networks
Affiliate has contracted for such Service (a “Third Party Provider”).  In such
instances, Nortel Networks or the Nortel Networks Affiliate who has contracted
with such Third Party Provider shall be the party to this Agreement that is
deemed to be providing such Service through its Third Party Provider
subcontractor.

1.3     Agreement to Provide Services

Subject to the terms and conditions hereof, during the Term, the Buyer hereby
engages Nortel Networks, and Nortel Networks hereby accepts such engagement, to
provide Services to the Buyer, either directly or through an Affiliate or Third
Party Provider as provided in Section 1.2 (“Parties”).  Nortel Networks shall
perform the Services in accordance with this Agreement and shall supply FWA
Products to the Buyer that conform to the Specifications in effect immediately
prior to the Closing.  Nortel Networks shall sell the FWA Products only to the
Buyer or its Affiliates.

The Buyer acknowledges and agrees that access to and use of the Services is
provided solely for the use of the Buyer and its Affiliates and solely in
relation to the FWA Products, during the Term of the Agreement.  The Buyer shall
not allow access to or use of Services by any third party without the prior
written consent of Nortel Networks, which consent may be granted or withheld in
the sole discretion of Nortel Networks.  The Buyer shall use its commercially
reasonable efforts to become independent of Nortel Networks, its Affiliates and
its Third Party Providers with respect to each of the Services no later than the
end of the Term.

1.4     Mutual Cooperation

The Buyer, Nortel Networks and their respective Affiliates shall cooperate with
each other in connection with the performance of the Services hereunder,
including producing on a timely basis all information that is reasonably
requested with respect to the performance of the Services and the transition
during the Term; provided, however, that such cooperation must not unreasonably
disrupt the normal operations of the Buyer, Nortel Networks and their respective
Affiliates.

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2.0.     SCOPE AND GRANT OF RIGHTS

Nortel Networks shall have the right and the Buyer hereby grants to Nortel
Networks, to the extent of its legal right to do so, a world-wide,
non-exclusive, non-transferable, royalty-free license to use Buyer proprietary
information communicated to Nortel Networks by the Buyer during the Term which
is reasonably necessary for the conduct of the Services hereunder for the
purpose of performing the Services hereunder in connection with the FWA
Products.  The Buyer further agrees to provide all such Buyer proprietary
information to Nortel Networks in connection with the foregoing license which
Nortel Networks deems to be reasonably necessary for the Services.  The Buyer
shall retain exclusive rights and title to all Buyer proprietary information
provided hereunder.  This license is non-transferable, may be used only in
connection with the performance of Services by Nortel Networks under this
Agreement, and shall expire on the date on which Nortel Networks obligations to
perform the Services terminate under this Agreement.

3.0     PURCHASING PRODUCTS

3.1     Orders

The Buyer shall have the right to acquire FWA Products by issuing one or more
written purchase orders signed by an authorized representative (“Order”). 
Nortel Networks shall not be obligated under this Agreement to accept an order
for any product or service that is not a RSS Product or a Base Station Circuit
Pack.  Orders for Base Station Circuit Packs and RSS Products shall be placed by
Buyer on or before June 30, 2004.  Nortel Networks shall be obliged to accept or
cause its Affiliates to accept such Orders for up to no less in the aggregate
than the number of FWA Products set forth in the Business Case for delivery
through December 31, 2004.  Notwithstanding the generality of the foregoing,
Nortel Networks shall submit a purchase order to Solectron for any excess
quantity ordered by the Buyer for delivery prior to December 31, 2004 and, to
the extent accepted by Solectron, the Order will be accepted by Nortel Networks
hereunder and Nortel Networks shall give notice thereof to the Buyer.  If this
Agreement has not been terminated in accordance with its provisions by June 30,
2004, Buyer may submit a purchase order to Nortel Networks for additional Base
Station Circuit Packs and RSS Product in an amount greater than the number
thereof set forth in the Business Case, and Nortel Networks shall submit such
purchase order to Solectron.  To the extent such purchase order is accepted by
Solectron, Nortel Networks shall accept such Order placed after June 30, 2004. 
Nortel Networks will accept Orders for FWA Product submitted before June 30,
2004 for quantities within the Business Case and for delivery before December
31, 2004.  Nortel Networks will submit for consideration by Solectron Orders
submitted prior to June 30, 2004 for a quantity greater than the Business Case
but Nortel Networks shall have no obligation to accept an Order to the extent
any Order is rejected by Solectron.  In addition, Nortel Networks will submit
for consideration by Solectron Orders submitted after June 30, 2004 and before
December 31, 2004 for any quantity but Nortel Networks shall have no obligation
to accept such Order to the extent it is rejected by Solectron.

The Buyer may not cancel an Order after it has been placed.

All Orders shall reference this Agreement.  All Orders shall specify the
quantity, price, Nortel Networks’ part number, billing address, requested
delivery dates, and any other special instructions, as applicable.  All Orders
will be governed by and cannot alter the terms and

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conditions of this Agreement.  Nortel Networks will respond to the Order within
three (3) business days of receipt with either acceptance or notification of any
requirements or terms that are not acceptable.  In the latter case, the Parties
will negotiate in good faith to resolve any unacceptable matters and agree upon
an Order that is acceptable to them.  Nortel Networks’ written or electronic
communication accepting the Order or shipment of FWA Products will be Nortel
Networks’ acceptance of the Order.  The Buyer agrees that all electronic Orders
issued are equivalent to a written Order, are governed by the terms and
conditions of this Agreement and that in the event of any conflict between this
Agreement and the Order, this Agreement governs.  The Buyer is responsible for
the use and protection from unintended use of all electronic pass codes provided
by Nortel Networks and agrees that all Orders submitted using such pass codes
are valid and binding Orders authorized by the Buyer.  Orders for FWA Products
shall be placed on the specific Nortel Networks entity and at the address
specified by Nortel Networks.

The Buyer and each Affiliate that purchases under this Agreement agrees to be
jointly and severally liable to Nortel Networks, with respect to each and every
obligation which the Buyer and any of the Affiliates may undertake for the
purchase of FWA Products pursuant to this Agreement, as if any such purchase was
made by the Buyer and each of the Affiliates for their own account.

3.2     Delivery; Title; Risk of Loss

Unless otherwise agreed by the parties to this Agreement in writing, Nortel
Networks will deliver RSS Products to Nortel Networks’ warehouse location in
Dallas, Texas and Base Station Circuit Packs at the Milpitas Facility
(“Delivery”).  Unless the Buyer requests a different mode of transportation,
Nortel Networks will ship all FWA Products to the Buyer by surface freight.  The
Buyer agrees to pay all transportation, handling, insurance and associated
charges, including but not limited to, additional charges for non-standard
shipment.

All risk of loss or damage to FWA Products will pass to Buyer upon Delivery. 
Title to the FWA Products shall pass to Buyer on Delivery.

Nortel Networks will use commercially reasonable efforts to meet the Buyer’s
requested delivery dates but does not guarantee delivery dates.  If there are
differences between the Buyer’s requested delivery dates and the delivery dates
Nortel Networks is willing to commit to, Nortel Networks shall identify the
cause of the discrepancy within the three (3) business days of receipt of the
order.  The Parties shall work together within five (5) business days of receipt
of such order to agree on firm delivery dates for the FWA Products.

Nortel Networks may make partial deliveries of Orders, provided the parties have
agreed in advance thereto in writing.  Delay in delivery of any installment
shall not relieve Buyer of its obligation to accept the remaining deliveries. 
If the Parties agree on a partial delivery, Buyer will be obliged to make
payments in accordance with Section 3.6 (Payment) of this Agreement only for
what Nortel Networks has agreed to deliver.

3.3     Price

Nortel Networks shall sell each FWA Product to the Buyer at the same price
Nortel Networks paid for the Product.  The price or cost methodology for each
FWA Product shall be set out in Exhibit 2 (Cost Methodology and Prices) as
amended from time to time.  Each Price is expressed

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in U.S. dollars.  The Price does not include any applicable handling charges,
interest charges, insurance charges, cancellation charges, or rescheduling
charges, or any applicable sales, use, and/or privilege taxes, all of which will
be additionally invoiced to the Buyer.  The Prices for FWA Products from the
Guadalajara Facility include outbound freight charges; outbound freight for the
FWA Products from the Milpitas Facility will be invoiced to the Buyer.  Nortel
Networks shall not invoice the Buyer for any federal or state sales, use, value
added or privilege tax provided the Buyer has provided Nortel Networks with a
valid exemption certificate.  The Price shall always be deemed to include all
charges for any Consumable Material consumed in the production of the FWA
Product.

3.4     Implementation of Price Changes

The Parties will review the Price for each FWA Product as specified in Exhibit 1
unless agreed otherwise by the Parties.  If a Price for an FWP Product will
change after such review, the Parties will agree on the implementation date of
such change.  Agreed upon changes to the Price shall be documented as set forth
in the revised Costed BOM; and set forth in a new or amended Order.

The Parties shall meet quarterly unless otherwise agreed by the Parties to
implement any price changes pursuant to the methodologies set forth in Exhibit
2.  Agreed upon changes shall be set forth in a new or amended Order for any
affected FWA Products

3.5     Expenses and Costs of Transition Services

The Buyer shall reimburse Nortel Networks (or, if applicable and so requested by
Nortel Networks, the Nortel Networks Affiliate, Third Party Provider or other
third party that paid such expense) for (i) reasonable out-of-pocket expenses
incurred by and paid by such Service provider, including but not limited to
travel and lodging expenses incurred pursuant to the Buyer’s request; and (ii)
any other fees or expenses that the Buyer has agreed to pay pursuant to this
Agreement.

Nortel Networks shall invoice the Buyer monthly at the Order Management Rate for
the cost of Order Management Services for each month or any part thereof during
which Nortel Networks performs Order Management Services.  Nortel Networks will
invoice the Buyer for one person for the Calgary Facility and one person for
Caribbean and Latin American order management.

3.6     Payment

Except as otherwise stated herein, Nortel Networks will invoice the Buyer as of
[*].  Any invoiced amount shall be due and payable [*].  If Buyer disputes any
invoice or part thereof, it will notify Nortel Networks prior to the payment due
date.  Any part of the invoice not disputed by Buyer will be paid as set forth
above.  The parties will negotiate in good faith to resolve any disputed invoice
as soon as reasonably possible.  Upon resolution, Buyer will pay any agreed
amounts due against the invoice within the terms of the invoice or as otherwise
agreed in writing by the parties.  In the event of non-payment, Nortel Networks
may suspend performance, FWA Product shipments or otherwise terminate an Order
or this Agreement.  All amounts past due shall accrue interest from the
thirty-first day following the date of the invoice at the rate of 1% per month
(or such lesser rate as may be the maximum permissible rate under applicable
law).  The Buyer consents to the sale of receivables arising from this
Agreement, in whole or in part,

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including all or any part of any associated rights, remedies, and obligations,
by Nortel Networks without further notice and authorizes the disclosure of this
Agreement as necessary to facilitate such sale; provided that in no event shall
Nortel Networks sell such receivables to any entity that is, or is an Affiliate
of, a competitor of the Buyer or Buyer’s Affiliates.

3.7     Taxes

The prices for the FWA Products and the fees for any Services are exclusive of
taxes.  The Buyer shall withhold the amount of any tax required to be withheld
from payments made to Nortel Networks pursuant to this Agreement.  To assist in
obtaining any tax credits for the amounts withheld from payments made by the
Buyer hereunder, the Buyer shall promptly furnish Nortel Networks such evidence
as may be required by the applicable taxing authorities to establish that any
such tax has been paid.  The Buyer shall pay to Nortel Networks the amount of
any applicable sales, use or service tax, value-added taxes, goods and services
taxes or any other similar taxes that Nortel Networks may be required to collect
because of its performance under or in connection with this Agreement (except
for any franchise tax, withholding tax (as described above or any tax imposed on
Nortel Networks’ net income)).  Nortel Networks shall identify any such tax as a
separate line item on each invoice (unless taxes are required under the law of
the relevant jurisdiction to be included in the price).  Nortel Networks shall
not include any such taxes on the invoice if the Buyer has provided Nortel
Networks with its permit number and/or any appropriate certificate of exemption
and/or other document or evidence to support its claimed entitlement to
exemption from such taxes.  The Buyer shall be solely responsible for ensuring
that such exemption applies and shall indemnify and hold Nortel Networks
harmless from any taxes (including interest and penalties) which Nortel Networks
may be required to pay as a result of its reliance on the Buyer’s certificate of
exemption and/or other document or evidence that supports the Buyer’s claimed
entitlement to exemption.

3.8     Limited Warranty

The warranty period for each FWA Product is twelve (12) months from the date of
manufacture (“Warranty Period”).

Nortel Networks warrants to the Buyer that it has marketable title to the FWA
Product sold to the Buyer and that Nortel Networks is either the owner of or has
all rights necessary to grant the rights and licenses provided to the Buyer
under this Agreement. 

Nortel Networks covenants and warrants that during the Warranty Period each FWA
Product shall be free from defects in workmanship, shall be free from defects in
Material under normal use and operation, and shall conform to the applicable
Specification. If a FWA Product does not function as warranted during the
Warranty Period Nortel Networks will in its sole discretion either i) make it do
so, or ii) replace it with an equivalent FWA Product

The Buyer represents and warrants that it has all right necessary to enter into
this Agreement.

No warranty of any kind is provided for failures caused by the inability of a
FWA Product to operate in conjunction with hardware or software that is not
included in a FWA Product.  The warranty will be voided by misuse, accident,
damage or modification, failure to maintain proper physical or operating
environment or improper Rework performed by the Buyer.

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THESE WARRANTIES AND LIMITATIONS ARE THE BUYER’S EXCLUSIVE WARRANTIES AND SOLE
REMEDIES AND REPLACE ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR CONDITIONS OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

The Parties anticipate that after the Closing, Solectron will deal directly with
the Buyer regarding warranty repairs of FWA Products sold by Nortel Networks
prior to the Closing.  To the extent Solectron is unwilling to deal directly
with the Buyer on such FWA Product, Nortel Networks agrees to repair or replace
FWA Products sold to its customers prior to the Closing in accordance with the
terms of its warranties to its customers and still within the warranty period
during the Term. 

When the Buyer returns a FWA Product to Nortel Networks under the warranty
created by this Section 3.8, the Buyer agrees to ship it prepaid and suitably
packaged to a location Nortel Networks designates.  Nortel Networks will send a
replacement FWA Product to the Buyer at Nortel Networks’ expense.  Nortel
Networks is responsible for loss of or damage to the Buyer’s FWA Product while
it is a) in Nortel Networks’ possession or b) in transit back to the Buyer.  Any
returned FWA Product becomes Nortel Networks’ property and, subject to Nortel
Networks’ receipt of the exchanged FWA Product, its replacement becomes the
Buyer’s property.  The replacement FWA Product may not be new but will be in
working order and equivalent to the item exchanged.  The Warranty Period for the
FWA Product shall be the greater of ninety (90) days from the date of
replacement or the remaining FWA Product warranty period.  The Buyer agrees to
ensure that returned FWA Product is free of any legal obligations or
restrictions that prevent its exchange and represents that all returned items
are genuine and unaltered.  Where applicable, the Buyer agrees to follow the
problem determination and problem analysis that Nortel Networks specifies.

4.0     TRADEMARKS

The Buyer’s use of trademarks owned by Nortel Networks shall be as set forth in
the Purchase Agreement.

5.0     RECORD KEEPING AND REPORTING

Nortel Networks shall maintain true and accurate records, in accordance with
generally accepted accounting principles and industry standards, of all FWA
Products it sells to the Buyer.  Nortel Networks shall prepare and forward to
the Buyer reports reasonably required by the Buyer.

The Buyer shall track all FWA Products by serial number and End User.  Upon
request, the Buyer shall provide Nortel Networks with the End User name, the
location of any such FWA Product and any applicable serial numbers.  Nortel
Networks and any of Nortel Networks’ suppliers shall have a right, upon
reasonable notice, to examine all such records.

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6.0.     RESERVED

7.0     CONFIDENTIAL INFORMATION

7.1     Confidentiality Agreement

Nortel Networks and the Buyer acknowledge that Nortel Networks and the Buyer
have entered into a Mutual Non-Disclosure Agreement, dated as of April 28, 2003
relating to the transactions contemplated by the Purchase Agreement (and the
Ancillary Agreements referred to therein) (the “Confidentiality Agreement”),
which shall remain in full force and effect after and notwithstanding the
execution and delivery of this Agreement or termination of the same.
Notwithstanding the expiration of the “Disclosure Period” (as defined in the
Confidentiality Agreement) or the other termination of the Confidentiality
Agreement, the information obtained from the Buyer or its Affiliates by Nortel
Networks or its representatives or Affiliates or by the Buyer or its
representatives or Affiliates from Nortel Networks or any its Affiliates,
pursuant to this Agreement or otherwise, shall be deemed “Confidential
Information” (as that term is defined in the Confidentiality Agreement) and the
Parties agree that Sections 3 through 10 of the Confidentiality Agreement, the
terms of which are incorporated by this reference as though set forth in full,
shall apply to such information (regardless of whether the Confidentiality
Agreement has been terminated).

Notwithstanding the foregoing and notwithstanding any previous agreement between
the Parties, for activities under this Agreement that are subject to taxation by
the United States, either Party (including its officers, directors, employees,
representatives and agents) may disclose to any and all persons without any
limitation the tax treatment and tax structure of this Agreement and/or
transactions under it, as well as materials detailing the tax treatment and tax
structure thereof.  However, the disclosing party will not disclose specific
details of this Agreement or any activity or transaction hereunder, not
necessary to an understanding of the tax treatment and tax structure thereof,
including but not limited to, descriptions of the particular technologies,
activities, or developments involved and the identity of the parties involved,
unless otherwise required by law.

7.2     Access

The Parties agree that each shall, without charge, provide the other Party (or
any Affiliate thereof or Third Party Provider) with such access to the Party’s
premises and/or personnel, and such assistance as may reasonably be required for
the other Party to perform its obligations under this Agreement.  In addition,
if the Buyer has access (either on-site or remotely) to any of Nortel Networks’
computer systems and/or information stores in relation to this Agreement, the
Buyer shall limit such access solely to the use of such systems for purposes of
this Agreement and shall not access or attempt to access any of Nortel Networks’
computer systems, files, software or services other than those required for this
Agreement, or those that are publicly available (e.g., public websites).  The
Buyer shall limit such access to those of its employees, agents or contractors
with a bona fide need to have such access in connection with this Agreement, and
shall follow all of Nortel Networks’ security rules and procedures for
restricting access to its computer systems.  All user identification numbers and
passwords disclosed to the Buyer and any information obtained by the Buyer as a
result of the Buyer’s access to and use of Nortel Networks’ computer systems
shall be deemed to be, and treated as, Nortel Networks’

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confidential information hereunder.  Nortel Networks and the Buyer shall
cooperate in the investigation of any apparent unauthorized access to any Nortel
Networks computer system and/or information stores.  These provisions concerning
computer access shall apply equally to any access and use by the Buyer of Nortel
Networks’ electronic mail system, Nortel Networks’ electronic switched network,
either directly or via a direct inward service access (DISA) or calling card
feature, Nortel Networks’ data network or any other property, equipment or
service of Nortel Networks, and any third party software not proprietary to
Nortel Networks but that may be accessible by the Buyer in connection with this
Agreement. 

7.3     Irreparable Harm; Remedies

Each Party acknowledges and agrees that any violation or threatened violation by
such Party of any of the terms set forth in Section 7.1 hereof would cause
irreparable injury to the other Party, that the remedies at law for any
violation or threatened violation thereof would be inadequate, and that such
other Party will, in addition to and not in limitation of any rights or remedies
available at law or in equity, be entitled to temporary and permanent injunctive
relief and specific performance without the necessity of proving actual damages.

7.4     Remedies Generally

If Nortel Networks shall be in breach of, or fail to perform any material
obligation under this Agreement, the Buyer may, by written notice to Nortel
Networks, require the remedy of the breach or the performance of the obligation
within thirty (30) days and if Nortel Networks fails to remedy the breach or
perform the obligation within such period, the Buyer may, at its option, declare
Nortel Networks to be in default and terminate this Agreement.  Such termination
shall be in addition to any other remedies that the Buyer may have under this
Agreement or at law or equity, including without limitation, the right to assume
Nortel Networks’ responsibilities in the supply of the FWA Products.  In
addition, Nortel Networks agrees to pay the Buyer all of the reasonable
out-of-pocket costs and expenses incurred by the Buyer in obtaining its supply
of the FWA Products directly from Solectron.  The Buyer shall invoice Nortel
Networks monthly for any such payment, and Nortel Networks shall pay any such
invoice in full within forty-five (45) days of receipt.  If Nortel Networks
interferes in the direct relationship between Solectron and the Buyer with
regard to the FWA Products, then Nortel Networks shall pay the Buyer all of the
reasonable costs and expenses incurred by the Buyer in obtaining its supply of
the FWA Products from a third party.  The Buyer shall invoice Nortel Networks
monthly for any such payment, and Nortel Networks shall pay any such invoice in
full within forty-five (45) days of receipt.

8.0     LIMITATION OF LIABILITY

8.1     Limitation

In no event shall Nortel Networks or its agents or suppliers be liable to the
Buyer for more than the amount of any actual direct damages up to the charges
for the FWA Products that are the subject of the claim regardless of the cause
and whether arising in contract, tort (including negligence) or otherwise.  This
limitation will not apply to claims for damages for bodily injury (including
death).

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NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT EXCEPT FOR BREACH OF THE
OBLIGATIONS IN SECTION 7, TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO
CIRCUMSTANCES AND UNDER NO LEGAL THEORY, WHETHER TORT (INCLUDING NEGLIGENCE),
PRODUCT LIABILITY, CONTRACT, OR OTHERWISE, SHALL ONE PARTY BE LIABLE TO THE
SECOND PARTY OR ANY OTHER PERSON FOR ANY LOSS OF, OR DAMAGE TO, THE SECOND
PARTY’S OR AN END-USER’S RECORDS, FILES, OR DATA OR FOR LOSS OF PROFIT OR
SAVINGS, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, RELIANCE OR
CONSEQUENTIAL DAMAGES, EVEN IF THE FIRST PARTY SHALL HAVE BEEN INFORMED OF THE
POSSIBILITY OF SUCH DAMAGES.  NOTHING IN THIS AGREEMENT SHALL ACT TO RESTRICT OR
EXCLUDE LIABILITY FOR DEATH OR PERSONAL INJURY CAUSED BY THE NEGLIGENCE OF ANY
PARTY.

8.2     Third Party Indemnity

This Agreement is for the sole and exclusive benefit of the Parties, and it
shall not be deemed to be for the direct or indirect benefit of any other person
or entity, including without limitation either Party’s customers, suppliers or
employees.  The Buyer shall indemnify and hold harmless Nortel Networks, and its
Affiliates and each of their respective officers, directors, employees,
managers, partners and agents, against and from any liability, loss, damage,
cost and expense (including attorneys’ fees and costs of litigation)
(collectively, “Losses”) arising out of or in connection with any claim or
action solely to the extent arising after the Closing that any person or entity
(other than the Buyer) may make or file against Nortel Networks or its
Affiliates or any of their respective officers, directors, employees, managers,
partners or agents in connection with this Agreement or the Services, regardless
of the standard of negligence or culpability alleged

9.0     TERM OF AGREEMENT; DEFAULT; TERMINATION

9.1     Term and Termination

The term (“Term”) of this Agreement shall commence on the Effective Date and
continue until termination.  The Agreement shall terminate upon the earliest to
occur of the following:  (a) mutual agreement of the Parties; (b) December 31,
2004; (c) the occurrence and continuation of a Default by one Party thirty (30)
days following receipt from the non-defaulting Party of a written demand for
termination and the opportunity to cure during such 30-day period; or (d) Nortel
Networks’ termination of this Agreement pursuant to Section 9.2 hereof.

9.2     Termination upon Sale of Buyer

In addition to the grounds for termination set forth in Section 9.1 (Term and
Termination) hereof, the whole or part of this Agreement may be terminated by
Nortel Networks in its sole discretion in the event of (i) the sale of all or
substantially all of the assets or capital stock of the Buyer to, (ii) a merger
of the Buyer with any third party in which the Buyer is not the surviving
corporation with, or (iii) an assignment by the Buyer of all or some of the
Buyer’s rights under this Agreement to, any entity which is a direct competitor
of Nortel Networks.  In such event, the Buyer shall promptly notify Nortel
Networks of any such sale, merger or intended assignment,

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and if Nortel Networks elects to terminate this Agreement, it shall so notify
the Buyer and such termination shall be effective upon the Buyer’s receipt of
such notice.

9.3     Effect of Termination

Upon termination of this Agreement by either Party:

 

(a)        The Buyer shall pay all undisputed amounts or charges owed to Nortel
Networks as provided in this Agreement, provided that the Buyer shall have the
right to set-off any amounts or charges owed to Nortel Networks against any
amounts owing to Buyer by Nortel Networks pursuant to this Agreement.  If the
aggregate amount owing by Nortel Networks to the Buyer is less than the
aggregate amount owing by the Buyer to Nortel Networks, the Buyer shall pay the
net amount in full within thirty (30) days of termination.

 

 

 

(b)        Provided the Buyer has made all payments required pursuant to
paragraph (a) above, Nortel Networks shall deliver to the locations designated
by the Buyer within three (3) weeks of the date of termination, all
deliverables, if any, with respect to the Products, in exchange for payment by
the Buyer of all amounts due with respect to such FWA Products.

9.4     Default

 

(a)        Either Party shall be deemed to be in default (such defaults,
together with the defaults described in Section 9.4(b), each a “Default”)
hereunder upon the occurrence of any one or more of the following events with
respect to it:

 

 

 

 

(i)     Failure to perform or fulfill any material obligation or condition of
this Agreement to be performed or fulfilled by such Party, if such failure
continues for thirty (30) days (or such longer period of time as is agreed by
the Parties to be reasonably necessary to allow such Party to so perform or
observe such obligation) after written notice thereof is given by the other
Party; or

 

 

 

 

 

(ii)     The making of any general assignment or arrangement for the benefit of
creditors, the filing of a voluntary or involuntary petition in bankruptcy by or
against such Party under any bankruptcy or insolvency law or similar proceeding,
the appointment of a trustee or receiver or the commencement of a similar
proceeding to take possession of, or the attachment or other judicial seizure
of, substantially all of such Party’s assets, or the taking by such Party of any
action in furtherance of the foregoing.

 

 

 

 

(b)        The Buyer shall be deemed to be in default hereunder if it fails to
make any payment when due hereunder, if such failure continues for thirty (30)
days after such payment was due, unless such payment is being actively contested
in good faith by the Buyer.

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9.5     Survival

Notwithstanding any termination of this Agreement, (i) the terms of Section 3.5
(Expenses), Section 3.6 (Payment) and Section 3.7 (Taxes), Section 7.1
(Confidential Information), Section 7.3 (Irreparable Harm; Remedies) Section 8.1
(Limitation), Section 8.2 (Third Party Indemnity), Section 11.2 (Governing Law),
Section 11.3 (Submission to Jurisdiction) and this Section 9.5 shall survive any
such termination; and (ii) any outstanding payment obligations of the Buyer to
Nortel Networks, and all provisions of this Agreement relating to payment of
amounts due, shall survive any such termination, until all such sums are paid in
full.

10.0     INSURANCE

Both Nortel Networks and the Buyer shall maintain, during the term of this
Agreement, all insurance and/or bonds required by any applicable law, including
but not limited to:  a) workers’ compensation insurance as prescribed by the
laws of all states in which work pursuant to this Agreement is performed; b)
employer’s liability insurance with limits of at least $5,000,000 per occurrence
and $15,000,000 in the aggregate; and c) comprehensive general liability
insurance (including products liability coverage, and contractual liability
coverage) with each coverage having limits of at least $5,000,000 per occurrence
and $15,000,000 in the aggregate.  Either party shall furnish certificates or
other adequate proof of such insurance to the other upon written request.  Proof
of a program of self-insurance acceptable to the requesting party (which
acceptance shall not be unreasonably withheld) shall satisfy any such request. 
Both Nortel Networks and the Buyer shall require any subcontractors and sales
agents involved with the performance of work pursuant to this Agreement, to
agree to maintain insurance coverage and to furnish certificates or other
adequate proof thereof to both Nortel Networks and the Buyer upon written
request.

11.0     GENERAL

11.1     Notice

All notices, requests, demands, claims and other communications hereunder shall
be in writing.  Any notice, request, demand, claim or other communication
hereunder shall be deemed duly delivered one business day after it is sent by
(a) a reputable courier service guaranteeing delivery within one business day or
(b) telecopy, provided electronic confirmation of successful transmission is
received by the sending Party and a confirmation copy is sent on the same day as
the telecopy transmission by certified mail, return receipt requested, in each
case to the intended recipient as set forth below:

If to the Buyer:

Copy to:

 

 

Airspan Networks Inc.

Adorno & Yoss, P.A.

777 Yamato Road, Suite 105

2601 S. Bayshore Drive, Suite 1600

Boca Raton, Florida 33431

Miami, Florida 33133

Telecopy:  (561) 893-8671

Telecopy:  (305) 858-4777

Attention:  Senior Vice President and
     Chief Financial Officer

Attention:  Seth P. Joseph

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If to Nortel Networks:

Copy to:

 

 

Nortel Networks Limited

Nortel Networks Inc.

8200 Dixie Road

200 Athens Way

Suite 100

Nashville, TN  37228

Brampton, Ontario

Telecopy:  (615) 432-4067

L6T 5P6

Attention:  Law Department

Telecopy:  (905) 863-8386

 

Attention:  Secretary

 

Any Party may give any notice, request, demand, claim, or other communication
hereunder using any other means (including personal delivery, expedited courier,
messenger service, telex, ordinary mail, or electronic mail), but no such
notice, request, demand, claim or other communication shall be deemed to have
been duly given unless and until it actually is received by the Party for whom
it is intended.  Any Party may change the address to which notices, requests,
demands, claims and other communications hereunder are to be delivered by giving
the other Parties notice in the manner herein set forth.

11.2     Governing Law

This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York without giving effect to any choice or
conflict of law provision or rule (whether of the State of Florida or any other
jurisdiction) that would cause the application of laws of any jurisdiction other
than those of the State of New York.

11.3     Submission to Jurisdiction

Each Party (a) submits to the exclusive jurisdiction of any state or federal
court sitting in the State of New York in any action or proceeding arising out
of or relating to this Agreement, (b) agrees that all claims in respect of such
action or proceeding may be heard and determined only in any such court, and (c)
agrees not to bring any action or proceeding arising out of or relating to this
Agreement in any other court.  Each Party waives any defense of inconvenient
forum to the maintenance of any action or proceeding so brought and waives any
bond, surety or other security that might be required of the other Party with
respect thereto.  Either Party may make service on the other Party by sending or
delivering a copy of the process to the Party to be served at the address and in
the manner provided for the giving of notices in Section 8.1.  Nothing in this
Section 8.3, however, shall affect the right of any Party to serve legal process
in any other manner permitted by law.

11.4     Binding Effect

This Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and assigns, subject to the limitations
on assignment in Section 11.10 (Assignability) hereof.

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11.5     Counterparts

This Agreement may be executed in one or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same agreement.

11.6     Entire Agreement

This Agreement (including the documents referred to herein) constitutes the
entire agreement between the Buyer, on the one hand, and Nortel Networks, on the
other hand.  All Schedules attached hereto are incorporated herein by
reference.  This Agreement (including the documents referred to herein)
supersedes any prior understandings, agreements, or representations by or
between the Buyer, on the one hand, and Nortel Networks, on the other hand,
whether written or oral, with respect to the subject matter hereof. 

11.7     Independent Contractor

In performing the Services hereunder, Nortel Networks shall operate as and have
the status of an independent contractor, subject only to the general direction
of the Buyer regarding the Services to be rendered, as opposed to the method of
performance of such Services.  No Party’s employees shall be considered
employees or agents of the other Party, nor shall the employees of any Party be
eligible or entitled to any benefits, perquisites or privileges given or
extended to any of the other Party’s employees.  Nothing contained in this
Agreement shall be deemed or construed to create a joint venture or partnership
between the Parties.  No Party shall have any power to control the activities
and/or operations of the other Party.  No Party shall have any power or
authority to bind or commit any other Party.

11.8     Severability

Any term or provision of this Agreement that is invalid or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability of
the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other
jurisdiction.  If the final judgment of a court of competent jurisdiction
declares that any term or provision hereof is invalid or unenforceable, the
Parties agree that the body making the determination of invalidity or
unenforceability shall have the power to reduce the scope, duration or area of
the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is
valid and enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within which the
judgment may be appealed.

11.9     Headings

The section headings contained in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of the
provisions of this Agreement.

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11.10     Assignability

This Agreement may not be transferred by either Party without the prior written
consent of the other Party, and any such purported transfer shall be void. 
Notwithstanding the foregoing, either Party may, upon written notice to the
other Party, transfer its rights under this Agreement to any Affiliate, in which
case such Party shall remain jointly or severally liable with any such Affiliate
for the fulfillment of all the terms and conditions hereof.  Neither Party shall
transfer its rights nor obligations under this Agreement to any Affiliate unless
and until any and all required government or third party approvals respecting
such transfer (if any) have been received by Nortel Networks and the Buyer.

11.11     Force Majeure

Nortel Networks shall be excused for failure to provide any Service to the
extent that such failure is directly or indirectly caused by acts of God,
national emergency, labor dispute, software, equipment or electrical
malfunction, transportation delays, telecommunication failures, or any other
event or circumstance beyond the reasonable control of Nortel Networks, but only
until the cessation of such event or circumstance, and if Nortel Networks shall
have used its commercially reasonable efforts to avoid such occurrence and
minimize its duration.  In the event that Nortel Networks’ performance hereunder
is affected by such an event or circumstance, Nortel Networks shall promptly
notify the Buyer of same, giving reasonably full particulars thereof and,
insofar as known, the probable extent to which it will be unable to perform, or
will be delayed in performing, its obligations hereunder, and Nortel Networks
shall use reasonable efforts to remove such force majeure. 

11.12     Amendments and Waivers

The Parties may mutually amend or waive any provision of this Agreement at any
time.  No amendment or waiver of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by both of the Parties.  No
waiver by either Party of any default, misrepresentation, or breach of warranty
or covenant hereunder, whether intentional or not, shall be deemed to extend to
any prior or subsequent default, misrepresentation or breach of warranty or
covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

11.13     Currency

All references to dollar amounts in this Agreement and its Schedules are, unless
otherwise explicitly stated in this Agreement or on such Schedule, in United
States Dollars. 

11.14     Language

The Parties have requested that this Agreement be prepared in the English
language.  Les parties ont demandé que la présente convention soit rédigée en
anglais.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their respective duly authorized representatives.

NORTEL NETWORKS LIMITED

AIRSPAN NETWORKS, INC.

 

 

By:

/s/ Arno Nadolny

 

By:

/s/ Peter Aronstam

 

 

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--------------------------------------------------------------------------------

 

 

 

 

 

 

 

Name:  Arno Nadolny

Name:  Peter Aronstam

 

 

Title:  Attorney-in-fact

Title:  Senior Vice President

 

 

Date:  December 18, 2003

Date:  December ____, 2003

 

 

 

Federal Tax I.D. Number:  75-2743995

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[*] Certain information on this Exhibit has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

EXHIBIT 1

FWA PRODUCTS

 

RSS PRODUCTS

 

 

--------------------------------------------------------------------------------

 

 

[*]

 

 

 

 

 

 

 

 

 

Solectron Guadalajara

 

 

 

 

 

 

 

 

 

 

[*]

 

 

[*]

 

Material Cost

 

 

[*]

 

 

[*]

 

Full Cost

 

 

[*]

 

 

[*]

 

 

 

 

[*]

 

 

 

 

 

 

 

 

 

 

 

 

Material Cost

 

 

[*]

 

 

 

 

Full Cost

 

 

[*]

 

 

 

 

 

 

 

RSS Product
Costs Include
Outbound freight

 

 

 

 

BASE-STATION PRODUCTS

 

Other FWA PCBAs

--------------------------------------------------------------------------------

 

--------------------------------------------------------------------------------

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

 

 

 

 

 

 

 

 

 

 

 

 

Solectron Milpitas Prices

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

[*]

[*]

[*]

[*]

Cost for each [*],[*],[*],[*],[*],[*],[*] are subject to the following:

[*]

Min [* ]to update [*] for all except [*] and [*], which have already been
updated.

[*].

[*]

Minimum Yield required for ICT is [*].
Minimum build quantity for each model is as noted above each PEC.

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[*] Certain information on this Exhibit has been omitted and filed separately
with the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

EXHIBIT 2

COST METHODOLOGY AND PRICES

F2 Design

The F2 design price will be locked at [*] for 2004.  Any manufacturing yield
improvements or yield degradation will be retained or absorbed by the EMS
Provider.  Similarly, any positive or negative impacts in the cost structure due
to material price changes or freight costs will be retained or absorbed by the
EMS Provider.  Any material BOM changes due to Engineering Changes (“EC”) may
cause the [*] price to be adjusted depending upon the amount of change directly
tied to the component or components that changed per the EC.  If new material
purchases are required beyond the amount of components currently on hand in
Consignment inventories, then any price differentials will also be retained and
absorbed by the EMS Provider.  This assumes pricing for Consignment inventories
sold to the EMS Provider will remain constant at current cost.  The only
exception would be tied to component part number A0740715 used on the F2
design.  For example, if quantities of this component are needed beyond what is
available in consignment inventory, then the purchase price from the component
supplier will be fixed at [*] versus the consignment selling price of [*] and
the selling price of the F2 will be increased accordingly to $[*].  The F2
locked price of [*] assumes a minimum monthly run rate of [*] units and an
annual minimum rate of [*] units.  If such run rates are not achieved, the [*]
price for the F2 design may be subject to price increases.  The EMS Provider has
agreed in principle to extend the aforementioned pricing methodology to the
Buyer if the transition period is completed prior to the end of 2004.

F5 Design

The pricing methodology for the F5 design will be structured in the same general
way as the F2 design.  Once production of the F5 product is restarted and
manufacturing and test yield data are captured and a final set of material
prices are determined, a locked 2004 F5 price will be determined between the
Parties.  2004 volumes are forecasted to be between [*] units and locked F5
pricing will assume 2004 production in this range.

F6 Design

As the F6 design is not complete, the Parties agree to determine the price for
this design upon release of a final design and bill of materials, which the
Parties expect to occur some time in Q2 of 2004.

Base Stations

Pricing methodology for the Base Station products will be as follows:

The Solectron Base Station Prices will be locked, with the exception of Material
Cost changes.  If new material purchases are required beyond the amount of
components currently on hand in

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Consignment inventories, then any price differentials will directly reflected in
Total Product Cost.  Any manufacturing yield improvements or yield degradation
will be retained or absorbed by the EMS Provider.  Any material BOM changes due
to Engineering Changes (“EC”) may cause a price to be adjusted depending upon
the amount of change directly tied to the component or components that changed
per the EC.  The locked prices assume a minimum build quantity as noted below
along with ICT Yields of [*].

NTEG72AD: [*] units

NTEG71HA: [*] units

NTEG7776: [*] Units

NTEG7730: [*] Units

NTEG7760: [*] Units

NTEG7744: [*] Units

NTEG7753: [*] Units

If such run rates are not achieved, the price for these products may be subject
to price increases.  The EMS Provider has agreed in principle to extend the
aforementioned pricing methodology to the Buyer if the transition period is
completed prior to the end of 2004.

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