EXHIBIT 10.5

 

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.

 

Technical Assistance Support

Services Agreement for FWA Equipment

 

This Technical Assistance Support Services Agreement for FWA Equipment (the
“Agreement”), dated as of February 14, 2003, is entered into between Axtel, S.A.
de C.V. a Mexican corporation, (“Customer”) and Nortel Networks UK Limited, an
English corporation (“Nortel Networks”).

 

The parties hereto agree to the following terms and conditions:

 

1. Scope

 

1.1 Nortel Networks will provide the technical assistance support services (the
“TAS Services”) and other FWA services (the “Other Services”), as described in
the Exhibit “B” of this Agreement (collectively the “Services”) at the prices
set forth in Exhibit “A”.

 

1.2 As part of the Services described in this Agreement, each year during the
Term of this Agreement, Nortel Networks will provide an annual software release
designed to enhance the functionality of the FWA System (the “Software
Enhancement Release”), as well as its first market application (“FMA”), and when
appropriate, it will include solutions to issues raised by Customer through the
Technical Support process, as detailed in Exhibit “B”, Exhibit “C” and Exhibit
“D” of this Agreement. The prices for this Software Enhancement Release and
related services, are described in Exhibit “A” of this Agreement. The content
and scope of the 2003 Software Enhancement Release are described in Exhibit “C”
of this Agreement. The content and scope of subsequent years’ of the Software
Enhancement Releases shall be agreed via the bi-monthly Product Enhancement
Conferences and by the end of September of the previous year.

 

1.3 The scope of Services is described in the following Exhibits attached hereto
and made an integral part of this Agreement:

 

  • Exhibit A: Price Summary

 

  • Exhibit B: Description of the Technical Assistance Support Services (“TAS”
or the “Services”)

 

  • Exhibit C: Content and Scope of the First Software Enhancement Release.

 

  • Exhibit D: “First Market Application Process For Annual FWA Software
Enhancement Release”.

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

Technical Assistance Support Services Agreement for FWA Equipment

 

2. Price

 

2.1 The price for the Services to be rendered by Nortel and for the provision of
the Software Enhancement Release and related services are indicated in Exhibit
A. All amounts have been expressed in US Dollars and do not include any taxes
that may be levied by any governmental authority for the sale of the Services.

 

2.2 If any payment hereunder is to be made in Mexican pesos, the prices in
Exhibit A shall be converted to Mexican pesos at the exchange rate published in
the Diario Oficial de la Federación on the date of payment; provided, however,
that payment may only be made in Mexican pesos as long as the Services are being
provided by a Mexican legal entity.

 

2.3 Each party shall be responsible for the payment of its own income taxes as
they relate to this Agreement. If any authority imposes a tax, duty, levy or
fee, excluding those based on Nortel Networks’ net income, in connection with
the Services supplied by Nortel Networks under this Agreement, Customer agrees
to pay that amount as specified in the invoice, or provide exemption
documentation.

 

2.4 If Customer is compelled by law to deduct or withhold any amounts from any
payment, then Customer shall pay to Nortel Networks such additional amounts as
may be necessary to ensure that Nortel Networks receives a net amount equal to
the full amount which would have been received had the payment not been subject
to such deduction or withholding.

 

2.5 Customer consents without qualification to the sale of receivables by Nortel
Networks, subject to a 30-day prior written notice, and authorizes the
disclosure of this Agreement and any attachments or associated documents as
necessary to facilitate such sale. Any tax impact to Customer resulting from
such sale and/or assignment shall be borne by Nortel Networks.

 

3. Payment Terms

 

3.1 Nortel Networks shall invoice Customer for the TAS Services every three (3)
months, 30 days in advance of the invoice due date, for TAS Services to be
provided within such 3-month period.

 

3.2 Nortel Networks shall invoice Customer one hundred percent (100%) of the
price of Other Services upon completion, unless the Other Service continues
beyond thirty days, in which case Nortel Networks shall invoice Customer at the
end of each month for the Other Services performed in that month.

 

3.3 Payment for the Services rendered by Nortel Networks shall be within thirty
(30) days from the date of invoice is received by Customer.

 

3.4 All payments shall be made in accordance with the payment instructions
contained in the applicable invoice if they are not in conflict with the
provisions of this Agreement.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

3.5 Customer shall pay interest on any late payments at the rate of 18% per
annum (1 1/2% per month).

 

4. Term

 

4.1 The term (“Term”) of this Agreement shall start on the Closing Date (as such
term is defined in the Restructuring Agreement) and shall continue for the same
term as the Purchase and License Agreement for FWA Equipment of even date
herewith, entered into among Nortel Networks Limited, Nortel Networks de Mexico,
S.A. de C.V. and Customer (the “FWA Supply Contract”).

 

5. Customer Responsibilities

 

5.1 Customer agrees to reasonably cooperate with Nortel Networks in the
performance by Nortel Networks of the Services, including, without limitation,
providing Nortel Networks with sufficient and timely access free of charge to
facilities, data, information and personnel of Customer in accordance with
Customer’s then-current access internal policies, including the recovery by
Nortel Networks of any diagnostic or test equipment, documentation or other
items used by Nortel Networks in the performance of the Services.

 

5.2 In addition, Customer shall be responsible for the accuracy and completeness
of all data and information that it provides or causes to be provided to Nortel
Networks. In the event that there are any delays by Customer in fulfilling its
responsibilities as stated above, there is a disagreement between the parties as
to the cooperation required from Customer, or there are errors or inaccuracies
in the information provided, Nortel Networks shall be entitled to appropriate
schedule and pricing adjustments.

 

6. Personnel

 

6.1 Nortel Networks and Customer are each responsible for the supervision,
direction, compensation and control of their own employees and subcontractors.
Nortel Networks may subcontract any portion or all of the Services to
subcontractors selected by Nortel Networks.

 

6.2 Neither party shall knowingly hire, engage as independent contractors or
solicit employees of the other party with whom it had contact as a result of the
performance of the Services for a period ending one year after completion of the
Services. Neither party shall be precluded from conducting generalized searches
for employees (and hiring those employees who respond to generalized searches),
through the use of advertisements in the media or through the use of search
firms, provided that searches are not specifically targeted on employees
providing Services.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

7. Patents and Copyrights

 

7.1 Nortel shall indemnify and hold harmless Customer, its officers, directors,
representatives, agents, employees, contractors, subcontractors, subsidiaries
and affiliates against any actual direct loss, damage, liability, cost, expense,
action or claim, including reasonable attorneys’ fees, litigation costs and
expenses and amounts paid in settlement, subject to the limitations set forth in
the following paragraphs, arising out of or in connection with any infringement
or alleged infringement of patents, copyrights, trademarks, trade secrets, or
any other intellectual property right of a third party. Therefore, if a third
party claims that any materials manufactured by Nortel Networks and provided to
Customer in the performance of the Services infringe that party’s patent or
copyright, Nortel Networks will defend Customer against that claim at Nortel
Networks’ expense and pay all costs and damages that a court finally awards or
are agreed to in settlement, provided that Customer (a) promptly notifies Nortel
Networks in writing of the claim; and (b) allows Nortel Networks to control, and
cooperates with Nortel Networks at Nortel Networks’ expense in, the defense and
any related settlement negotiations. If such a claim is made or appears likely
to be made, Nortel Networks agrees to secure the right for Customer to continue
to use the materials, or to modify them, or to replace them with materials that
are functionally equivalent. If Nortel Networks determines that none of these
alternatives is reasonably available, Customer agrees to return the materials
upon Nortel Networks’ written request. Nortel Networks will give Customer a
credit equal to the amount paid by Customer to Nortel Networks for the
infringing materials returned. Any such claims against the Customer or liability
for infringement arising from use of the materials following a request for
return by Nortel Networks are the sole responsibility of Customer. This
represents Customer’s sole and exclusive remedy regarding any claim of
infringement.

 

7.2 Nortel Networks has no obligation regarding any claim based on any of the
following: (a) anything Customer provides which is incorporated into the
materials; (b) compliance by Nortel Networks with the Customer’s specifications,
designs or instructions; (c) the amount of revenues or profits earned or other
value obtained by the use of a product by Customer; (d) Customer’s modification
of the materials or products, provided that Customer is hereby authorized to
generate new Software Scripts or modify the existing ones; provided, however,
that Nortel Networks shall not be obligated to support such modified Software
Scripts; and provided, further, that Nortel Networks shall not be responsible
for any performance issues resulting from such modified Software Scripts; or (e)
Customer’s failure to install or have installed changes, revisions or updates as
instructed by Nortel Networks.

 

7.3 In case of any infringement caused by any Third Party Vendor Item, Nortel
Networks shall reasonably cooperate with Customer and hereby assigns to Customer
any of its rights to request the proper defense and indemnification for such
claim to such Third Party Vendor. Nortel Networks shall provide Customer with
all necessary contact information and applicable documentation, if available,
for those third party vendors. Furthermore, Nortel Networks shall use its best
efforts to provide reasonable assistance to Customer for Customer to be able to
obtain from the Third Party Vendor the applicable defense and indemnification
for such Third Party Vendor Item infringement, but only to the extent such
assistance does not cause Nortel Networks to incur any out-of-pocket expenses or
material additional costs.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

8. Intellectual Property

 

8.1 Nortel Networks, on behalf of itself and its subcontractors, reserves all
proprietary rights in and to (i) all methodologies, designs, engineering
details, and other data pertaining to the Services and designs, documentation
and other work product prepared by Nortel Networks and delivered to Customer,
(ii) all original works, computer programs and updates developed in the course
of providing the Services (except Customer’s developed programs) or as otherwise
agreed in writing between the parties, (iii) discoveries, inventions, patents,
know-how and techniques arising out of the Services, and (iv) any and all
products (including software and equipment) developed as a result of the
Services. The performance by Nortel Networks of Services shall not be deemed
work for hire. Nortel Networks grants to Customer a perpetual, non-exclusive,
world-wide, paid up license to use, copy and modify the designs, documentation
and other work product prepared by Nortel Networks and delivered to Customer in
the performance of Services solely for Customer’s internal business purposes.

 

8.2 It is understood between the parties that Nortel Networks will employ its
know-how, techniques, concepts, experience and expertise, as well as all other
intellectual property to which it reserves its rights, to perform services the
same as or similar to the Services for others.

 

9. Warranty and Disclaimer

 

9.1 Nortel Networks will perform the Services in a professional and workmanlike
manner. Customer shall notify Nortel Networks in writing of any non-conformance
within sixty (60) days of the date on which the Services are completed. Provided
Customer gives written notice to Nortel Networks of any non-conforming Services
within the above 60-day period, Nortel Networks will re-perform the
non-conforming Services.

 

9.2 THIS WARRANTY IS CUSTOMER’S EXCLUSIVE WARRANTY. NORTEL NETWORKS HEREBY
DISCLAIMS ALL OTHER WARRANTIES AND CONDITIONS, EXPRESS OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, THE IMPLIED WARRANTIES AND/OR CONDITIONS OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE.

 

10. Limitation on Liability

 

10.1 In no event shall Nortel Networks or its agents or subcontractors be liable
to Customer for more than the greater of the amount of any actual direct damages
or the fees paid for Services 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) and damage to real property and tangible personal
property for which Nortel Networks is legally liable and payments as set forth
in Section 7 - Patents and Copyrights.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

10.2 IN NO EVENT SHALL NORTEL NETWORKS OR ITS AGENTS OR SUPPLIERS BE LIABLE FOR
ANY OF THE FOLLOWING: A) DAMAGES BASED ON ANY THIRD PARTY CLAIM EXCEPT AS
EXPRESSLY PROVIDED FOR HEREIN AND IN SECTION 7; B) LOSS OF, OR DAMAGE TO,
CUSTOMER’S RECORDS, FILES OR DATA; OR C) INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS OR LOST SAVINGS),
EVEN IF NORTEL NETWORKS IS INFORMED OF THEIR POSSIBILITY.

 

11. Force Majeure

 

11.1 Neither party shall be liable for delays or nonperformance of this
Agreement occasioned by fire, casualty, explosion, lightning, accident, strike,
lockout, labor unrest, labor dispute (whether or not, in respect of the
foregoing labor-related matters, the affected party is in a position to settle
the matter), war (declared or undeclared), armed conflict, civil disturbance,
riot, Act of God, delay of common carrier, the enactment, issuance, or
application of any law, local by-law, regulation, or executive, administrative,
or judicial order, acts (including delay or failure to act) of any governmental
authority, or any other cause or causes (whether of the foregoing, nature or
not), or any other similar or different occurrence, which cause or occurrence is
beyond the reasonable control of the affected party and whether or not
foreseeable by such party (“Force Majeure”). However, if the delay or
non-performance due to Force Majeure exceeds 3 (three) months, the party not
affected by Force Majeure may terminate this Agreement provided written notice
has been given to the other party.

 

12. Independent Contractors

 

12.1 The parties herein are independent contracting entities. Nothing herein
shall be construed to create a relationship of employer and employee, joint
venture, partnership or association between Customer and Nortel Networks. Except
as expressly provided herein, neither party shall have the right to bind or
obligate the other party in any manner without the written consent of the other
party.

 

13. Termination; Survival

 

13.1 Without prejudice to any rights and remedies provided for hereunder, either
party hereto may terminate this Agreement, effective immediately, upon written
notice to any other party, upon the occurrence of any of the following events or
conditions (each, an “Event of Default”):

 

  (i) the other party applies for or consents to the appointment of, or the
taking of possession by a receiver, custodian, trustee or liquidator of itself
or of all or a substantial part of its property,

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

  (ii) the other party makes a general assignment for the benefit of its
creditors,

 

  (iii) the other party commences a voluntary proceeding under the bankruptcy,
insolvency or similar laws relating to relief from creditors generally,

 

  (iv) the other party fails to contest in a timely or appropriate manner, or
acquiesces in writing to, any petition filed against it in an involuntary
proceeding under the bankruptcy, insolvency or similar laws relating to relief
from creditors generally, or any application for the appointment of a receiver,
custodian, trustee, or liquidator of itself or of all or a substantial part of
its property or its liquidation, reorganization, dissolution or winding-up; or

 

  (v) the other party materially fails to perform any term or condition under
this Agreement or any of its Annexes, which failure continues for a period of
thirty (30) days after written notice has been given to the breaching party;
provided, however, that if any party exercises its termination rights as
provided in this Section 13.1 after the sale of the FWA Business by any
affiliate of Nortel Networks, the FWA Supply Contract shall automatically be
terminated concurrently therewith; and provided, further, that if any party
exercises its termination rights as provided in this Section 13.1 prior to the
sale of the FWA Business by any affiliate of Nortel Networks, the three other
Replacement Agreements shall automatically be terminated concurrently therewith.

 

13.2 In addition, without prejudice to any other rights and remedies provided
for hereunder, Nortel Networks may terminate all four Replacement Agreements,
effective immediately, upon written notice to Customer, upon the occurrence of
any of the following events or conditions:

 

  (i) Customer fails to make payment in accordance with the terms and conditions
hereof, which failure continues for a period of ten (10) business days (in
Mexico) after written notice to Customer,

 

  (ii) within eighteen (18) months from the date hereof, the identity of
Customer’s business materially changes by sale of its business, transfer of
control of its capital stock, merger or otherwise, unless prior written consent
therefore has been received from Nortel Networks; or

 

  (iii) the occurrence of an Event of Default under any one of the Senior Note
or the other Replacement Agreements which by the terms of such agreements would
allow Nortel Networks to declare such Senior Note due and payable or to
terminate such Replacement Agreement, as the case may be.

 

13.3 The respective obligations of each party pursuant to Sections 2, 3, 6, 7,
8, 9, 10, 12, 13, 14 and 15 hereof, and any other obligations of each party
pursuant to this Agreement that by their nature would continue beyond the
termination, cancellation, or expiration hereof shall survive such termination,
cancellation, or expiration; provided, however, that if

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

Customer fails to make payment in accordance with the terms and conditions
hereof (subject to the cure period provided in Section 13.2 above), the parties
expressly agree that Section 9.1 hereof shall not survive such termination,
cancellation, or expiration.

 

14. Confidential Information

 

14.1 Confidential information (“Information”) means: (i) software; and (ii) all
business, technical, marketing and financial information and data that is
clearly marked with a restrictive legend of the disclosing party (“Discloser”).

 

14.2 The party receiving Information (“Recipient”) will use the same care and
discretion to avoid disclosure, publication or dissemination of Information as
it uses with its own similar information that it does not wish to disclose,
publish or disseminate. The Recipient may disclose Information only to: (i) its
employees and employees of its parent, subsidiary or affiliated companies or
subcontractors who have a need to know for purposes of carrying out this
Agreement; and (ii) any other party with the Discloser’s prior written consent.
Before disclosure to any of the above parties, the Recipient will have a written
agreement with such party sufficient to require that party to treat Information
in accordance with this Agreement.

 

14.3 The Recipient may disclose Information to the extent required by law.
However, the Recipient must give the Discloser prompt notice and make a
reasonable effort to obtain a protective order.

 

14.4 No obligation of confidentiality applies to any Information that the
Recipient: (i) already possesses without obligation of confidentiality; (ii)
develops independently; or (iii) rightfully receives without obligations of
confidentiality from a third party. No obligation of confidentiality applies to
any Information that is, or becomes, publicly available without breach of this
Agreement.

 

14.5 Each party’s obligations hereunder shall survive for a period of five (5)
years after receipt of Information hereunder from the Discloser, except as
otherwise mutually agreed upon by the parties.

 

14.6 THE DISCLOSER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY NATURE
WHATSOEVER WITH RESPECT TO ANY INFORMATION FURNISHED TO THE RECIPIENT,
INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE OR AGAINST INFRINGEMENT.

 

15. General Provisions

 

15.1 This Agreement will be governed by and construed in accordance with the
laws of the State of New York, United States of America, with the exclusions of
its conflicts of law provisions.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

15.2 If, within thirty (30) days from the date of any notice of dispute from a
Party to any other Party, such Parties are unable to resolve the issue, then
either Party may initiate the binding arbitration to resolve such dispute by
written notice to such other Party upon expiration of such thirty (30) day
period. Any dispute between the Parties arising in connection with this
Agreement shall be exclusively resolved by arbitration pursuant to the Rules of
Conciliation and Arbitration of the International Chamber of Commerce then in
force. The arbitration proceedings pursuant to this Section 18(c) shall take
place in the English language in the City of Miami, State of Florida, before a
panel of three (3) arbitrators appointed in accordance with the aforementioned
rules. The decision of the arbitrators shall be final and binding upon the
Parties and their respective successors and assigns. The decision and award
rendered by the arbitrators may be entered in any court of competent
jurisdiction and any such court may order the enforcement of such award against
the Parties and their respective successors and assigns.

 

15.3 EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING ANY ORDER ISSUED AND ACCEPTED
HEREUNDER.

 

15.4 The terms and conditions stated herein, together with its Exhibits A, B,
and C attached hereto, are the complete and exclusive statement of the agreement
between the parties with respect to the Services (including the provision of the
Software Enhancement Release and its related services) described herein. There
are no representations, warranties, promises, covenants or undertakings between
the parties except as described in this Agreement.

 

15.5 If any of the provisions of this Agreement are found to be invalid under an
applicable statute or rule of law, they are to be enforced to the maximum extent
permitted by law and beyond such extent are to be deemed omitted from this
Agreement, without affecting the validity of any other provision of this
Agreement.

 

15.6 The headings and captions in this Agreement are for convenience only and
shall not be used to construe the meaning of this Agreement.

 

15.7 Customer agrees not to assign or otherwise transfer this Agreement or
Customer’s rights under it, or delegate Customer’s obligations, without Nortel
Networks’ prior written consent, and any attempt to do so is void.
Notwithstanding the foregoing, Nortel Networks may assign or otherwise transfer
this Agreement or its rights under it, or delegate its obligations, to any of
its affiliates or to any purchaser of the FWA Business, under the terms set
forth in Section 20 of the FWA Supply Contract.

 

15.8 Any changes to this Agreement must be made by mutual agreement and in
writing.

 

15.9 Capitalized terms used in this Agreement without definition shall have the
meaning assigned to those terms in the FWA Supply Contract.

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

16. Notices

 

16.1 The Parties expressly agree that any notices, communications or requests
which must be made under this Contract shall be given in person, by express or
overnight courier or telefax (in which case hard copy by express courier must
follow) at the following addresses (or in such other address or telefax number
that the Parties may designate by notice to the other party under the terms set
forth herein):

 

If to Customer:

  

Axtel, S.A. de C.V.

Blvd.. Gustavo Díaz Ordaz Km. 333

Piso 2

Col. Unidad San Pedro

San Pedro Garza García, 66215 N.L.

Attention: Alberto de Villasante Herbert

Tel: (52-81) 8114-1131

Fax: (52-81) 8114-1771

With a copy to:

  

Axtel, S.A. de C.V.

Blvd.. Gustavo Díaz Ordaz Km. 333

Piso 2

Col. Unidad San Pedro

San Pedro Garza García, 66215 N.L.

Attention: Corporate Counsel

Tel: (52-81) 8129-8137

Fax: (52-81) 8114-1762

If to Nortel Networks:

  

Nortel Networks UK Limited

c/o Nortel Networks (CALA) Inc.

1500 Concord Terrace

Sunrise, FL 33323-2815

U.S.A.

Attention: Senior Counsel

Tel: 954-858-7158

Fax: 954-851-8817

With a copy to

  

Nortel Networks de México, S.A. de C.V.

Insurgentes Sur No. 1605, Piso 30

Col. San José Insurgentes

03900 México, D.F.

Attention: President and General Manager

Tel: (52-55) 5480-2100

Fax: (52-55) 5480-2977

 

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Technical Assistance Support Services Agreement for FWA Equipment

 

Any notices to be given under this Agreement shall be made in writing and shall
be effective upon receipt at the address or telefax number specified herein, or
shall be given in any other way that the Parties may agree, which may prove that
the notice was effectively given.

 

IN WITNESS WHEREOF, the parties have executed this Agreement through their duly
authorized representatives.

 

NORTEL NETWORKS UK LIMITED   AXTEL, S.A. DE C.V. By:  

 

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

  By:  

 

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

Name:  

 

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

  Name:  

 

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

Title:  

 

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

  Title:  

 

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Page 11

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LOGO [g58880image002.jpg]   

Agreement for the provision of Technical Assistance Support Services for FWA
Equipment

 

Exhibit A - PRICE SUMMARY

Order Placement & Payment Terms

   LOGO [g58880image3.jpg]

 

Order Placement

 

Annual Support Services

 

Customer shall submit on or before December 1st of each year, a Purchase Order
for the Support Services of the following year.

 

Other Services

 

Orders to be placed as required. Vendor shall accept such Purchase Orders within
10 business days after delivery thereof if Nortel Networks agrees to perform the
service and if such Purchase Orders are in compliance with this Agreement.

 

Submission of Orders

 

Customer shall submit the Order in accordance with the terms of the Order
Procedure of the FWA Supply Contract.

 

Payment Terms

 

All payments shall be in accordance with the terms of the Agreement and will be
performed in USD currency.

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

LOGO [g58880image002.jpg]   

Agreement for the provision of Technical Assistance Support Services for FWA
Equipment

 

Exhibit A - PRICE SUMMARY

   LOGO [g58880image3.jpg]

 

Project

  AXTel               Nortel Networks Corporation           Issue   29-May-04   
      

Code

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

 

Description

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

   Qty

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

   Unitary Price USD

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

NA   Technical Assitance Support Services, which includes Global Product Support
and Network Technical Support per year.    1    [*]     Global Repair Services
are not considered and will be quoted and invoiced by event          

 

Price for the annual fee of [*] corresponds for the calendar year 2003.
Thereafter, there will be annual price uplifts to such fee, which shall reflect
UK inflation and the growth of the FWA network as per the following
calculations:

 

Price for calendar 2004: [*]

 

Price for each subsequent calendar year: The sum of (a) the price for the first
previous calendar year multiplied by (1+UK inflation rate), plus (b) an amount
equal to two percent (2%) of the aggregate purchase price in US Dollars up to
and including US$15 million of FWA equipment delivered during the second
previous calendar year, plus (c) an amount equal to one percent (1%) of the
aggregate purchase price in US Dollars in excess of US$15 million of FWA
equipment delivered during the second previous calendar year.

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

LOGO [g58880image002.jpg]   

On Site Support Services in accordance with Section 1.1 of Exhibit B of this
Agreement.

 

Exhibit A - PRICE SUMMARY

Out of scope Technical Support rates

   LOGO [g58880image3.jpg]

 

Notwithstanding Nortel Networks’ determination that on-site support is not
necessary, Axtel will nevertheless have the right to require on site support
from Nortel Networks, provided that such on site support required by Axtel shall
be at Axtel’s cost unless it is agreed that it was necessary for such support to
be provided on site.

 

Project    AXTel                Nortel Networks Corporation           Issue   
29-May-04          

Code

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

  

Description

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

   Qty

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

   Unitary Price USD

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

    

Per ocurrence rates for Technical Support

         

Regular

  

Monday through Friday 9:00 a.m. to 6:00 p.m. customer’s local time

   1    [*]

Overtime 1

  

Monday through Friday 6:01 p.m. to 8:59 a.m. customer’s local time & All day
Saturday

   1    [*]

Overtime 2

  

All day Sundays & Nortel Networks Holidays

   1    [*]      Price in USD per hour          

 

Note: 3 hour minimum

Travel and Living (T&L) reasonable expenses are not included in pricing. The
Travel and Living expenses include: Air fare, Hotel, Meals, Taxis as applicable.

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

LOGO [g58880image002.jpg]   

Other Services other than On Site Support Services

 

Exhibit A - PRICE SUMMARY

   LOGO [g58880image3.jpg]

 

Project

   AXTel               

Nortel Networks Corporation

         

Issue

   29-May-04          

Code

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

  

Description

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

   Qty

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

   Unitary Price USD

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

    

Per ocurrence rates for Technical Support

         

Regular

  

Monday through Friday 9:00 a.m. to 6:00 p.m. customer’s local time

   1    [*]

Overtime 1

  

Monday through Friday 6:01 p.m. to 8:59 a.m. customer’s local time & All day
Saturday

   1    [*]

Overtime 2

  

All day Sundays & Nortel Networks Holidays

   1    [*]      Price in USD per hour          

 

Note: 3 hour minimum

Travel and Living (T&L) reasonable expenses are not included in pricing. The
Travel and Living expenses include: Air fare, Hotel, Meals, Taxis as applicable
Note: With respect to Nortel Networks’ on site personnel for the First Market
Application Process for Annual FWA Software Release, Customer will only pay the
T&L expenses of such personnel.

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

LOGO [g58880image002.jpg]   

Agreement for the provision of Technical Assistance Support Services for FWA
Equipment

 

Exhibit A - PRICE SUMMARY

Per Event Repair and Return Facility for Base Station Equipment

   LOGO [g58880image3.jpg]

 

Project

   AXTel               

Nortel Networks Corporation

         

Issue

   29-May-04          

Code

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

  

Description

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

   Qty

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

   Unitary Price USD

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

NTED4575

   Transceiver Processor Module (TPM)    1    [*]

NTEG71HA

   Transceiver Processor Module Packet Data (TPM - PD)    1    [*]

NTEG73AA

   Network Management Module (NNM)    1    [*]

NTEG63AA

   Transceiver Timing Module (TTM)    1    [*]

NTEG72AD

   Transceiver Baseband Module (TBM)    1    [*]

NTEG77GB

   Transceiver Masthead Unit (TMU)    1    [*]

NTEG74BA

   OVPM    1    [*]      Price in USD          

 

Note for Base Stations:

 

  • As separate and additional charge, each Base Station element returned for
repair will be charged individually as the above table. Invoicing at the
beginning of each month for units delivered to Vendor for repair during the
previous month. Payment of 100% of invice amount due within thirty (30) days of
invoice date.

 

  • Individual Base Station element return & repair charges, excluding shipping
and duty. Vendor repair cases resulting in “no fault found” to be charged at 50%
of the vendor’s full repair rates. Purchaser will pay reasonable handling fees
units determined by Vendor to be beyond economic repair. Return and repair
turnaround target time to be 60 days.

 

  • Vendor will not provide a hardware emergency replacement service.

 

Note for RSS:

 

  • As a separate and additional charge, an RSS Repair & Return service will be
charged through one of the following two options. The Purchaser will elect one
of these two options by the Closing Date for the year 2003 and by December 15th
of the prior year for each year thereafter.

 

(1) US$145 per unit returned with a commitment to pay for the return of at least
450 units per month (i.e. US$65,250 per month, plus US$145 for each unit over
450 units). Invoicing at the beginning of each month for units delivered to
Vendor for repair during the previous month (subject to the minimum commitment
amount). Payment of 100% of invoice amount due within thirty (30) days of
invoice date.

 

(2) An annual up front payment of US$75,000 (due with Purchase Order) and a per
unit charge of US$130 per unit, with no associated minimums. Invoicing at the
beginning of each month for units delivered to Vendor for repair during the
previous month. Payment of 100% of invoice amount due within thirty (30) days of
invoice date.

 

  • Vendor repair cases resulting in “no fault found” to be charged at 50 % of
the Vendor’s full repair rates. Purchaser will pay reasonable handling fee of
units determined by Vendor to be beyond economic repair. Return and repair
turnaround target time to be 60 days.

 

  • Vendor will not provide a hardware emergency replacement service.

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

Exhibit B

 

DESCRIPTION OF THE TECHNICAL

ASSISTANCE SUPPORT SERVICES

 

Page 1

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

“Exhibit B”

 

DESCRIPTION OF THE TECHNICAL ASSISTANCE SUPPORT SERVICES

 

1.0 SERVICES SUMMARY

 

This package of services from the Nortel Networks Support Services portfolio
will provide remote 2nd & 3rd level of technical assistance and emergency
recovery for Nortel Networks products in Axtel’s network. Axtel’s in house
structure will perform the Operations, Administration & Maintenance functions.

 

For this annually contracted support package, Nortel Networks’ will provide
Technical and Support Services (the “Services”) to the Nortel Networks’ FWA
Hardware and FWA Software installed in Axtel’s Network in Mexico (excluding
Hardware under warranty), such Services are described below:

 

  • Provide remote troubleshooting on Nortel Networks supplied software and/or
hardware

 

  • Assist in resolving network fault issues that may be linked to AXTEL’s
network operational procedures and methodologies

 

  • Assist AXTEL’s staff in determining fault-locating interface problems
between Nortel Networks hardware or software and other vendors’ equipment

 

  • Perform REM software upgrades

 

The terms and conditions for these services are set forth in this Exhibit B.

 

Here follows a description of the Services to be provided by Nortel Networks:

 

1.1 Technical Support Services

 

Technical Support Services, the foundation of the Nortel Networks Support
Services portfolio, provides remote support for issues associated with the
operation and maintenance of Nortel Networks products. Technical Support
Services includes two levels of service:

 

  • Remote Technical Assistance

 

  • Emergency Recovery

 

Remote Technical Assistance provides assistance to address network issues that
are not classified as emergency priority. Nortel Networks will register and
manage requests for Technical Assistance during normal business days and
business hours observed by Nortel Networks in the region where the service is
being performed.

 

Note: Nortel Networks classifies Technical Assistance case priorities as
Business Critical, Major, and Minor. Please refer to “1.1.6 Technical Support
Case Priority Classifications and Examples.”

 

Emergency Recovery provides assistance to address emergency network issues.
Nortel Networks will register and manage requests for Emergency Recovery 24
hours per day, seven days per week including holidays observed by Nortel
Networks in the region where the service is being performed.

 

Page 2

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

Note: Nortel Networks classifies Emergency Recovery case priorities as E1 and
E2. Please refer to “1.1.6 Technical Support Case Priority Classifications and
Examples.”

 

To provide Remote Technical Assistance and Emergency Recovery, Nortel Networks
technicians and engineers will provide support primarily by remote means. In a
collaborative effort with Axtel’s technical staff, these personnel will attempt
to diagnose and resolve issues related to the hardware, software, and/or
documentation supplied by Nortel Networks as explained in this service
description.

 

For both Remote Technical Assistance and Emergency Recovery, where telephone
support, remote diagnosis, and all other means of restoring product operation
have failed, Nortel Networks, upon Axtel’s request, and if Nortel Networks
determines that on-site support is necessary and appropriate, will dispatch a
trained and qualified technical expert to Axtel’s premises to facilitate further
diagnosis.

 

  • Notwithstanding Nortel Networks’ determination that on-site support is not
necessary, Axtel will nevertheless have the right to require on site support
from Nortel Networks, provided that such on site support required by Axtel shall
be at Axtel’s cost unless it is agreed that it was necessary for such support to
be provided on site.

 

1.1.1 Technical Assistance Deliverables

 

Resolution activities, based on typical cases, may include:

 

  • Remote Troubleshooting problems using diagnostic utilities

 

  • Providing advice on how to detect and resolve hardware and network-related
problems

 

  • Advising on issues requiring hardware replacement

 

  • Diagnosing issues related to Nortel Networks products interfacing with
non-Nortel Networks products

 

Note: Nortel Networks will resolve the issue to the point of demonstrating that
the problem is attributable to the non-Nortel Networks products and, under the
coordination of Axtel, a Nortel Networks technician can be available to discuss
the fault issue with the appropriate vendor.

 

  • Analyzing trace/log/dump/Operational Measurement (OM) information

 

  • Remote telephone and/or email support to Nortel Second Level support (NTS)
in troubleshooting, diagnosing and correcting failures by Nortel Networks
hardware and/or software to function as per the relevant Nortel Networks product
specifications in Axtel’s network.

 

  • Providing regular, on-going updates on case progress using an agreed-upon
medium

 

  • Service Restoration and Resolution of the reported cases in accordance with
Section 2.2.3 below of this Exhibit.

 

Page 3

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

1.1.2 Emergency Recovery Deliverables

 

Nortel Networks Emergency Recovery teams respond to customer emergencies 24
hours a day, 365 days a year. Customer emergencies are cases that are classified
as E1 or E2 in accordance with Nortel Networks Case Priority Classification.

 

Note: Please refer to “1.1.6 Technical Support Case Priority Classifications and
Examples.”

 

Nortel Networks strives to immediately assign an engineer upon receipt of the
call. Thereupon, Nortel Networks will provide continuous support as applicable
until the service level is restored to pre-incident operation. The Emergency
Recovery team will be in constant contact with Axtel throughout this case
resolution activity, if requested.

 

Note: Please refer to “2.2 Call Center Access for Technical Support.”

 

Following service restoration, the E1/E2 case will be closed in agreement with
Axtel and a follow-up case (Major for E1 and Minor for E2) can be opened, if
further investigation or problem resolution activity is needed. Furthermore,
Nortel Networks may, where applicable, conduct a root-cause analysis of the
emergency incident, which may be made available to Axtel.

 

1.1.3 Axtel Responsibilities for Technical Support Services

 

For both Technical Assistance and Emergency Recovery Axtel will be required to:

 

  • Confirm that the products are installed, commissioned, used and maintained
by knowledgeable and skilled people acting in accordance with the applicable
product documentation from Nortel Networks

 

  • Replace hardware components during diagnosis or as remedial actions.

 

  • Generate performance/availability reports and associated trend analysis.

 

  • Gather data in a timely manner in support of Nortel Networks’ diagnostic
process when reasonably within the technical competency of AXtel.

 

  • Identify issues requiring hardware replacement

 

  • If applicable, use all reasonable efforts to maintain hardware and software
at the release or update level for supported hardware and software. This
maintenance will need to be in accordance with policies and procedures published
by Nortel Networks. If Axtel is using a software version released prior to the
then-current minimum supported version(s) and is therefore unsupported, then
Axtel will need to upgrade to one of the then-current minimum supported versions
in order to acquire rights to any known fix.

 

  • Perform software upgrades and/or patch applications, except for REM software
upgrades unless otherwise agreed with Nortel Networks.

 

  • Except for those activities described in Exhibit D of this Agreement,
acknowledge that any hardware / software upgrades / improvements or changes
required to install or use a software fix, update, release, or any part thereof
are charged separately from, and are in addition to, the charges of the current
contract

 

  • Provide connectivity in a timely manner to the product(s) for Nortel
Networks to establish a data link for use by Nortel Networks technical support
group in order to conduct remote diagnosis and maintenance

 

Page 4

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

Note: Axtel and Nortel Networks technical personnel will agree on the
appropriate type of data link based on network equipment and configuration as
well as the appropriate security measures to prevent unauthorized access. Axtel
will be solely responsible for security of the network. Nortel Networks will not
connect to Axtel’s network without prior authorization and such connection will
be solely to provide technical support.

 

  • Excuse Nortel Networks from fault resolution for a period equal to such
failure or delay, should Axtel fail or cause delay in providing connectivity

 

  • Designate and make available competent personnel to aid in problem diagnosis
and provide electronic access to the affected product(s) to aid in problem
investigation and resolution for all incidents. For E1/E2 Axtel personnel should
be available to work together with Nortel Networks technical expert throughout
the process.

 

  • Axtel should provide their internal escalation process in order to inform
all the contacts to Nortel Networks.

 

  • Maintain a support agreement(s) with the third-party supplier(s) for such
product(s), as Axtel sees fit.

 

  • Axtel’s in-house structure that performs first-line support will need to
exhaust internal troubleshooting processes. First-level Operations,
Administration, and Maintenance (OA&M) functions may include, but are not
limited to:

 

  • Performing day-to-day maintenance and network operations

 

  • Monitoring network and system alarms

 

  • Performing diagnosis in accordance with instructions provided by Nortel
Networks and carrying out initial remedial actions, including remote diagnosis

 

  • Operating and controlling Axtel’s internal help desk for logging and
tracking fault inquiries, prioritizing events, and escalating, as required, to
the Nortel Networks technical support group

 

  • Providing local time templates and historical actions performed on each
event as reference information to the Nortel Networks technical support group
(NTS).

 

1.1.4 Technical Support Services Assumptions

 

For both Technical Assistance and Emergency Recovery the following assumptions
will apply:

 

  • The Technical Support Services program covers all FWA Hardware and Software
(except for Hardware under warranty) installed in Axtel’s network.

 

  • Nortel Networks shall provide an annual product software release designed to
enhance the functionality of the product and when appropriate it will include
solutions to issues raised through the CNR process. The First Market Application
of the annual product software release (including REM software upgrades) is
further described in Exhibit D of this Agreement. The content of the 2003 annual
release is described in Exhibit C to this Agreement. The content of subsequent
years’ releases shall be agreed via the bi-monthly Product Enhancement
Conferences and by the end of September of the previous year.

 

Page 5

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

  • In the event that Axtel fails to comply with the requirements described in
section 1.1.3 (Axtel Responsibilities for Technical Support), Nortel Networks
will advise Axtel of its non-compliance. Nortel Networks and Axtel may then
agree upon service to be provided at the then-current time-and-materials basis
published by Nortel Networks plus any travel and living expenses incurred.

 

  • Nortel Networks, or a skilled, qualified third-party authorized by Nortel
Networks, will furnish this service.

 

1.1.5 Technical Support Services Exclusions

 

The following exclusions will govern the delivery of both Technical Assistance
and Emergency Recovery:

 

  • Nortel Networks is not responsible for products that have not been
installed, commissioned or upgraded as per the applicable processes and
procedures.

 

  • Nortel Networks is not responsible for supporting non-Nortel Networks
supplied third-party product(s). Axtel will be responsible for maintaining
support agreements with the OEM/third-party supplier for such product(s).

 

  • Technical Support Services do not cover Nortel Networks products not
purchased from Nortel Networks or from a Nortel Networks authorized agent

 

  • Nortel Networks will not be obliged to incorporate software corrections into
software releases prior to the then-currently supported software release(s).
Nortel Networks reserves the right to incorporate software corrections into
future software releases

 

  • Nortel Networks support obligations are expressly conditional upon the
products not being (i) subject to unusual mechanical stress or unusual
electrical or environmental conditions; (ii) subject to misuse, accident or
disaster including without limitation, fire, flood, water, wind, lightning or
other acts of God; or (iii) altered or modified unless performed or authorized
by Nortel Networks

 

  • Nortel Networks Products under Warranty are excluded from this Technical
Support Services Pack.

 

  • Products which have not been installed and commissioned by appropriately
skilled and trained personnel using Nortel Procedures are excluded from this
Technical Support Services Pack.

 

  • Technical Support Services will not be provided during installation and/or
commissioning process.

 

1.1.6 Technical Support Case Management

 

  • Nortel Networks will measure the severity level of hardware or software
incidents according to the following TL9000 Customer Severity classifications
for Critical, Major, and Minor Hardware/Software problem reports. Only if it is
not clear which severity level applies, then the severity level assigned by
Axtel will be used.

 

Page 6

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

  • Nortel Networks uses case priorities that correspond with the Customer
Severity (TL9000) classifications. Notwithstanding the TL9000 Major Customer
Severity definition, to provide increased focus on certain types of Major
problems, Nortel Networks uses additional case priority definitions: E2,
Business Critical, and Major.

 

  • Nortel Networks uses case priorities that correspond to the TL9000 Customer
Severities as shown in the following table:

 

TL9000

Customer Severity

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

  

Nortel Networks

Case Priority

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

Critical

  

E1

Major

  

E2

    

Business Critical

    

Major

Minor

  

Minor

 

For more detailed information about Technical Support Case Priority, Case
Resolution Objectives, Case Progress Status and Case Resolution Classification,
please refer to sections 2.2.3 to 2.2.7.

 

2.0 GENERAL

 

2.1 Holidays Observed by Nortel Networks

 

Please refer to your local Nortel Networks representative to get information of
Local National Holidays observed at Customer’s location.

 

2.2 Call Center Access for Technical Support

 

The Nortel Networks Call Center will function as a single point of contact for
the receipt of all support calls and inquiries. The remote support effort will
begin with a telephone call and will continue with the appropriate actions to be
taken according to Nortel Networks Case Severity Classifications.

 

The Call Center will be available 24 hours a day, 365 days a year. General
provisions for accessing Technical Support services include:

 

  • Nortel Networks may, where applicable, also provide a customer with the
ability to open, view, and modify cases directly within the Nortel Networks
case-tracking system via www.nortelnetworks.com. The customer will bear
telecommunication facility charges and/or long distance toll charges associated
with access to www.nortelnetworks.com

 

  • Where toll-free +access is not available, the customer will bear
telecommunication facility charges and/or long distance toll charges for access
to the Call Center

 

Page 7

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

  • All cases are logged into a Nortel Networks case-tracking system. The case
is time-stamped and a case reference number allocated. Furthermore, Nortel
Networks will request that the customer agree to a case priority level

 

  • E1 and E2 priority cases are to be reported by telephone only

 

  • The Customer escalation of a case to higher levels of management within
Nortel Networks, shall be in accordance with the following escalation table:

 

“Nortel Networks Escalation Procedure”

 

Axtel’s NOC Call Center Nortel Networks Nortel Networks Technical Support
Engineer Nortel Networks Technical Support Manager. Nortel Networks Technical
Support Sr. Mgr. Nortel Networks Technical Support Director    Nortel Networks
Customer Operation Leader

 

At Closing Date, Nortel Networks will provide Customer with the contact
information of the persons involved in this Escalation Procedures, as well from
time to time, the changes to such contact information will be provided to
Customer.

 

2.2.1 Nortel Networks Technical Support Services Call Process

 

When calling Nortel Networks for Technical Assistance or Emergency Recovery, the
customer’s representative will be asked to provide the following information:

 

  1. Company name

 

  2. Caller name and phone number

 

Page 8

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

  3. Personal Identification Number (PIN) or a unique Customer Purchase Order
number or credit card number, if a PIN has not been issued.

 

  4. Site Location/Site ID

 

  5. Product on which the problem is being reported

 

  6. Problem description and severity

 

A Call Center agent will generate a Case Reference Number (CRN), which will be
provided to the customer for tracking the case. A Nortel Networks technician
will then team with the customer’s representative to resolve the reported issue.

 

2.2.2 Call Center Phone Numbers

 

Customer sites in Latin America will access the Nortel Networks technical
support organizations by calling:

 

Tel: (52) 55 5480-2170, Fax. (52) 55 5480-2103

Available 24 hours a day, 365 days a year

Pager: SkyTel (52) 55 5227-7979

PIN: 5266667 / Reach Me PIN: 52 5266667

email: nsc@nortelnetworks.com

 

2.2.3 Technical Support Response Times

 

Once Axtel has opened a CRN at the Nortel Networks’ Call Center and depending on
the Severity Classification, a Nortel Networks Technical Support (NTS) Engineer
will contact the Axtel’s representative as per the terms set forth in Table
2.2.3 below :

 

“Table 2.2.3”

 

TL9000
Severity
Classification

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

  

Actions

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

   Response Times

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

   Target
Service
restoration
time

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

  

Resolution
Targets

Based on
RQMS*

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

      Business
Hours

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

   Non –
Business
Hours

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

      E1 (*1)    Worked continuously (7 x 24) until resolution or workaround is
provided    15 min    30 min    7 Hr    24 hr E2 (*1)    Worked continuously (7
x 24) until resolution or workaround is provided    15 min    30 min    8 Hr   
10 Days Business Critical and Major (*2)    Worked during normal business days
and business hours.    2 hrs    Next
Business
Day    24 Hr    30 Days Minor (*2)    Worked during normal business days and
business hours.    Next
Business
Day    Next
Business
Day    30 Days    180 days

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

(*1) This Service is provided 7 x 24

(*2) This Service is provided in Normal Business Hours

 

Page 9

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

Note: The times set forth in Table 2 – R above, are subject to Nortel Networks
and Customer working together in conjunction on a reasonable efforts basis to
find a workaround for services restoration and resolution within the target
times. These times do not represent an obligation or performance indicator.

 

* RQMS – Reliability and Quality Measurements for Telecommunications Systems.

 

2.2.4 Technical Support Case Priority

 

Problem reports will be classified as set forth in the tables below:

 

TL9000
Severity
Classification

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

  

Nortel Networks Case

Priority & Definition

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

  

Examples

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

Critical   

E1

 

Problems that severely affect service, capacity/traffic, billing and maintenance
capabilities and require immediate corrective action, regardless of time of day
or day of the week.

  

•   Total or partial network element outage

•   A reduction in capacity or traffic handling capability such that expected
loads cannot be handled

•   Failure resulting in dynamic routing, switching capability or transport loss

•   Any loss of safety or emergency capability (e.g., emergency calls such as
911 in North America)

•   Loss of the system’s ability to perform automatic system reconfiguration

•   Inability to restart the system

•   Loss of billing/accounting capability

•   Corruption of billing or system databases that requires service affecting
corrective actions

•   Other problems that severely affect service, capacity/traffic, billing, and
maintenance capabilities or are jointly viewed by Nortel Networks and the
customer as critical

 

Page 10

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

TL9000
Severity
Classification

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

 

Nortel Networks Case

Priority & Definition

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

 

Examples

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

Major

 

E2

 

Problems that result in potential service degradation and/or total outage.
Serious situation not involving service degradation in a live environment, but
leading to a total or partial loss of redundancy.

 

•      Loss of redundancy of critical functions

•      Loss of protection switching capability

•      Short outages equivalent to system or subsystem outages not seriously
impacting service with accumulated duration of greater than two minutes in any
24-hour period, or that continue to repeat during longer periods

•      A reduction in provisioned capacity of 5% and for a cumulative duration
of more than 10 minutes per 24 hours

•      Repeated degradation of DS1/E1 or higher rate spans or connections

•      Loss of system’s ability to perform automatic system reconfiguration

•      Loss of access to maintenance or recovery operations

•      Any loss of functional visibility and/or diagnostic capability

•      Loss of system’s ability to provide any required system critical/major
alarms

•      Total loss of access to provisioning

TL9000
Severity
Classification

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

 

Nortel Networks Case

Priority & Definition

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

 

Examples

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

Major

 

Business Critical

 

Problems that result in a major degradation of system or service performance
that impacts service quality or significantly impairs network operator control
or operational effectiveness. Overall network is degraded resulting in severe
limitations to operations or network management software product has major
feature that is not working properly with only difficult workaround.

 

•      The customer has been given a work-around but the situation still
requires constant attention due to the temporary nature of the work-around

•      Software application/migration issues that gate the introduction of new
services or functionality

•      Billing error rates that exceed specifications

•      Corruption of system or billing databases

 

Page 11

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

TL9000
Severity
Classification

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

 

Nortel Networks Case

Priority & Definition

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

 

Examples

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

Major

 

Major

 

Problems that result in conditions that seriously affect system operation,
maintenance and administration, etc. and require immediate attention. The
urgency is less than in a Business Critical situation because of a lesser
immediate or impending effect on system performance, customers, and the
customer’s operation and revenue.

 

•      Degradation of any capacity/traffic measurement function; degradation of
functional visibility and/or diagnostic capability

•      Degradation of access for maintenance or recovery operations

•      Degradation of the system’s ability to provide any required system
critical/major alarms

•      Loss of access for routine administrative activity

•      Any system failure without direct immediate impact

•      Intermittent degradation of services; partial loss of access to
provisioning

•      Software application/migration issues that do not impact service

•      Reduction in any capacity/traffic measurement function

•      Any loss of functional visibility and/or diagnostic capability

•      Any significant increase in product-related customer trouble reports

•      Follow-up to E1 customer problems

•      Other problems that disrupt or prevent routine system activities, or
problems that are jointly viewed as Major events by Nortel Networks and the
customer

 

TL9000

Severity

Classification

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

 

Nortel Networks Case

Priority & Definition

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

 

Examples

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

Minor  

Minor

 

Problems do not significantly impair the functioning of the system and do not
significantly affect service to customers. These problems are tolerable during
system use.

 

•      Service analysis, recorded announcements, operational measurements,
maintenance program, or network management problems; or system-related
documentation inaccuracies, that do not affect call processing

•      Test equipment failures for which a backup or manual alternative can be
employed

•      Circuit pack testing problems

 

2.2.5 Case Resolution Objectives

 

     Nortel Networks Technical Support case resolution targets are based in
Nortel Networks best efforts and set according to the following TL9000 standard.
The Case Resolution Objectives are described in Table 2.2.3 above.

 

Page 12

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2.2.6 Case Progress Status

 

     Nortel Networks Technical Support use the following status to differentiate
the case conditions during the evolution of the case investigation. A set of
status, its related meaning and its relationship with the case age, are defined
in the table below:

 

Status

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

 

Description

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

 

Nortel Clock

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

Newly Opened

  This status is the default. It signifies that no work has been done on the
case.   Start

WIP Level 1

  This status is used when a NTS Engineer is actively working on the Case.  
Not Stopped

WIP Level 2

 

This status is used when a Second Level Support Engineer is actively working a
case

* Second Level Support: Software Support, Product Support.

  Not Stopped

Escalated To Design

  This status is used when a Design Engineer is actively working on the case  
Not Stopped

Answer From Design

  Design Engineer has concluded its investigation and has replied back to the
NTS Engineer   Not Stopped

With A Customer

  During the course of conducting their research, the NTS Engineer may need
additional information or activity from the Customer. The “With a Customer”
status is assigned when the NTS Engineer is waiting on a Customer response in
order to continue investigation   Stopped

Status

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

 

Description

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

 

Nortel Clock

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

Interim Solution

  If a temporary solution is provided that eliminates the customers pain until a
permanent solution can be delivered, RQMS requirements allow the case to be set
to an “IS” status during this window of time if approved by the Customer. In
calculating case age, this interval will be discounted if the permanent fix was
delivered on the negotiated commitment date. If the permanent fix does not
resolve the reported problem, case status shall be changed to Work in Progress
(Level 1 or 2). If the case is returned to a Work in Progress (Level 1 or 2)
status after using the IS, the IS time period will be added to the RQMS age of
the case.   Stopped

Future Deliverable

  Customer agrees to live with the problem condition and that the fix will be
delivered as part of a future Nortel product release (software release,
maintenance release, documentation release or hardware revision. Requirements to
use this status include Customer consent; fix identification, and delivery
commitment. This status code does not add time to the RQMS age of the case
unless the solution fails and the case is moved back to Work in Progress (Level
1 or 2) status. If the case is returned to a Work in Progress (Level 1 or 2)
status after using the FD, the FD time period will be added to the RQMS age of
the case.   Stopped

 

Page 13

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

Solution Delivered

  Solution Delivered or available for testing and verification. If the delivered
solution does not resolve the reported problem, the status will be changed to
Work in Progress (Level 1 or 2). If the case is returned to a Work in Progress
(Level 1 or 2) status after using the SD status, the SD time period will be
added to the RQMS age of the case.   Stopped

Pending OEM Vendor

  The case has been handed over to an OEM Vendor for resolution   Not Stopped

 

2.2.7 Case Resolutions Classifications

 

Nortel Networks Technical Support case resolutions: which shall be mutually
agreed for each case:

 

  • Cannot Reproduce: After 60 days and a reasonable effort, a problem has not
been observed in the Network, is not reproducible or sufficient information has
not been provided to adequately troubleshoot the problem and isolate the root
cause

 

  • Customer Process: Human errors are present or the customer has failed to
follow procedures recommended and documented by Nortel Networks

 

  • Design Intent: The functionality required by customer does not align with
the design specifications of the product set forth in Agreement, in which case
Nortel Networks shall make clear to Axtel which is such design specification
(i.e., the functionality is unsupported), and the issue can only be resolved
through new development efforts subject to a separate product development
agreement and charges.

 

  • External Cause: Issue caused by non-Nortel Networks products

 

  • Hardware Deficiency: A problem is isolated to defective hardware materials
or workmanship or substantial nonconformance to specifications published by
Nortel Networks

 

  • Hardware Failure: A problem is caused by a hardware component failure that
falls within Mean Time Between Failure (MTBF) limitations

 

  • Nortel Networks Literature: Required Nortel Networks technical document does
not exist or the contents of an existing document are in error [for example, an
incomplete Nortel Networks Technical Publication (NTP)]

 

  • Nortel Networks Process: A problem occurs as a result of a Nortel Networks
process deficiency

 

  • Opened in Error: The case should not have been opened

 

  • Scheduled Event: An outage occurs resulting from planned maintenance,
installation, or manual initialization, including such activities as parameter
loads, software/firmware changes, and other OA&M activities

 

  • Software Deficiency: A problem is isolated to a software design deficiency.

 

2.3 Nortel Networks Conditions for Services Provided Outside of the Scope of
this Technical Support Services Pack

 

If a customer requests a service that is neither part of the scope of the
Technical Support Service nor within the control or responsibility of Nortel
Networks and if Nortel Networks agrees to perform the service, then Nortel
Networks will charge customer at the per-occurrence rate schedule to perform
such services as published by Nortel Networks.

 

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On Site/Remote Technical Assistance & On Site/Remote Emergency Recovery Out of
Scope Services may be provided on a per-occurrence basis only when:

 

  • Support is needed for efforts not covered under a contract support program
(such as the one proposed herein)

 

Note: Axtel must have a Nortel Networks Support Contract in place, as the one
proposed herein, to be able to request any Per-Occurrence Support Services. It
is not intended to offer the Per-Occurrence Support Services separately from a
Nortel Networks Support Contract.

 

Technical Support Out of Scope situations can include

 

  • On-site visits to a customer’s system sites, when the visit is at the
request of the customer but is not deemed necessary by Nortel Networks. This
includes site visits requested by the customer for support when resolution could
have otherwise been achieved from a remote location. This is subject to the
terms set forth in Section 1.1 above.

 

  • Requests to investigate issues pertaining to software features that are
either outside the functionality as defined in the Nortel Networks Technical
Publications (NTPs) or are outside standards supported by Nortel Networks

 

Note: Nortel Networks periodically reviews the deployment of its products based
on technology, market deployment, and support requirements. Nortel Networks then
nominates products that would no longer be supported as of a specified date and
changes the status to “nominated EOL.” Nortel Networks will notify customers of
EOL product intentions well in advance through the distribution of Product
Portfolio Simplification/Product Service Information (PSI) bulletins as well as
Nortel Networks Feature Planning Guides.

 

  • Assistance in set-up and usage of Operational Measurements (OMs)

 

  • System performance assessment

 

  • Training on product hardware maintenance

 

  • Training on general office operations/maintenance procedures

 

  • Training on test equipment and troubleshooting procedures

 

2.3.1 Per-Occurrence Repair Services

 

  • As a separate and additional charge, each Base Station item returned for
repair will be charged individually. Invoicing at the beginning of each month
for units delivered to Nortel Networks for repair during the previous month.

  • The Individual Base Station element return & repair included are:

 

– TPM

 

– TTM

 

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- TBM

 

- NMM

 

- TMU

 

- OVPM

 

  • As a separate and additional charge, an RTU Repair & Return service will be
offered through one of two options. Axtel will elect one of these two options by
the Closing Date for the year 2003 and by December 15th of the prior year for
each year thereafter. Both options are detailed in the Price Summary (Exhibit
“A”).

 

  • Nortel Networks repair cases resulting in “no fault found” to be charged at
50 % of the Nortel Networks’ full repair rates. Axtel will pay the handling fee
of units determined by Nortel Networks to be beyond economic repair. Return and
repair turnaround target time to be 60 days.

 

  • Nortel Networks will not provide a hardware emergency replacement service.

 

2.3.2 Axtel Order Process for FWA Repair Services

 

This process supports the delivery of Nortel Networks FWA Repair Services for
AXtel. Customers of Nortel Networks who request a hardware repair service should
have the following required information ready when placing a repair order with
Nortel Networks:

 

  1. Customer or distributor name

  2. Customer ID (Project #, Site ID)

  3. Requestor name, phone and fax number, and e-mail address

  4. Customer ship to address

  5. Part number (PEC or CPC or manufacturer’s part number)

  6. Quantity (quantity of one per serial number)

  7. Serial number of the defective part(s) being returned (if applicable)

  8. Warranty status

  9. Confirmation of the availability of a fully completed Nortel Networks fault
report form for said product.

  10. Any additional information about product (system type or software release)

  11. Any special shipping instructions

 

Upon receiving the customer’s request and after any diagnostics assistance,
Nortel Networks will allocate a part request number to each FRU to be repaired
and notify the customer of the relevant part request number.

 

This part request number, also known as the Return Material Authorization (RMA)
number, is critical for tracking individual orders and must be referenced on
failure tags, shipping/packing lists, returned defectives, and any
correspondence or inquiries concerning the order.

 

The customer’s representative can call in, fax or e-mail a Repair Service order
directly to Nortel Networks in Mexico using the following contact means:

 

Office hours (Monday through Friday from 9:00 a.m. to 6:00 p.m. (Local time)

 

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Phone number: (52) 55 50 91-4839, Fax: (52) 55 5091 4842,

aliciav@nortelnetworks.com

 

     Faxes

 

     All faxed orders will be processed and assigned an RMA# by the close of the
next business day.

 

     To obtain a parts request form by e-mail, please send an e-mail message to
any of the above addresses and note “repair order form” in the subject/title
field. A form will be sent automatically.

 

     Place the PO number in the subject/title field when e-mailing a completed
parts request form back to Nortel Networks. For order confirmation, Nortel
Networks will respond with an RMA number to all e-mail orders by the next
business day.

 

2.3.3. Package Labeling Instructions and Addresses for Returns

 

     Circuit packs should be packed in anti-static containers designed
specifically for the circuit packs in order to avoid damage during shipment.
Other parts should be individually wrapped in either anti-static packaging or
packaging specifically designed for that product to avoid damage during
shipment. Nortel Networks will inform customers of any improper packaging, which
will void the warranty.

 

     All materials should be returned pre-paid and sent to the appropriate
Nortel Networks repair facility. The customer should use discretion in selecting
shipping methods. Nortel Networks recommends that customers insure all packages
to cover possible loss or damage during shipping, regardless of warranty status.

 

     A completed Nortel Networks fault report must be filled out and attached to
each returned item to assist in failure assessment and problem tracking. Fault
reports are sent with each replacement shipment. Customers can obtain additional
supplies by contacting the Nortel Networks Customer Support Center.

 

     Nortel Networks will inform customers of any discrepancy in return
shipments. Any discrepancy, whether it is quantity (more or less), product
returned not matching what was ordered, inability to determine complete order
information, or non-suitable packaging, would be noted and addressed.

 

     Defective Return Packing Slips

 

     Defective return packing slips should be used to return all defective parts
to Nortel Networks. Nortel Networks will provide defective return packing slips
for use to return shipments. A copy of the defective return packing slip should
be placed in all the cartons and attached outside. This duplication will aid in
processes and proper identification of returned material. The RMA number and the
PO number should be clearly marked on the outside of each box. If a customer
supplies a packing slip, the following information must be included on the
shipping/packing list for proper handling:

 

     Item (Information Required)

 

  1. From (Company name, return address, and telephone number)

  2. Ship Date (Date parts are shipped from the customer)

  3. Ship via (Carrier or Enterprise name)

  4. Waybill number (Carrier or Enterprise tracking number

  5. Number of Cartons (Number of cartons being sent on shipment)

  6. Customer’s PO# (Provided, if applicable)

 

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  7. Repair order number (RMA# issued by Call Center when order is placed)

  8. Site ID or Project number

  9. Item Number

  10. Quantity ordered

  11. Quantity returned

  12. Nortel Networks Part number

  13. Description of item

  14. Serial number (The serial number for each item in the shipment)

  15. Shipment requested by (Signature of the customer’s representative)

 

Repair Facility Addresses

 

Nortel Networks de México

Kilómetro 42.5 Carretera México-Querétaro

Nave # 3

Parque Industrial Cedros

Tepozotlán, Edo. de México, CP 54600

MEXICO

Attn: Hardware Support Representative

 

This address may be modified from time to time by Nortel Networks.

 

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Exhibit C

 

Content and Scope of the 1st Software

Enhancement Release

 

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Exhibit C

 

Content and Scope of the 1st Software

Enhancement Release

 

1.0 COMMITTED CONTENT

 

The following is a list of agreed and committed content of the 1st Software
Enhancement release known as “SR 14.1”

 

  • Ethernet connectivity between REM and ITS

 

  • MMP15 compatibility

 

  • OS Support in relation to Windows and MAC operating systems

 

  • iNMS/xceed REM Pass-throughput

 

  • New REM Platform

 

  • 3 Time Slot working for the Packet Data Service (This is in addition to the
existing 6 Time Slot Capability

 

  • PDS Dynamic Allocation

 

In addition to the SR14.1 release it has been agreed that the REM enhancement
features known as ‘RFD / NTC improvements’ will be made available to Axtel as
part of the maintenance release known as MR 14.03 and forecast for delivery to
the Customer within two (2) months of the Closing Date.

 

It is also understood that the Nortel Networks Design team will take reasonable
efforts to incorporate the enhancement known as ‘Automatic Install Quality
monitoring’ in the SR14.1 release, but it is understood by the Customer that
this is an additional feature that has not been committed as a firm deliverable
within SR14.1

 

2.0 RELEASE DATE

 

The availability date of the SR14.1 release will be within eleven (11) months of
the Closing Date, the exact date will be confirmed once the detail specification
of the above features have been agreed between the Customer and Nortel Networks.

 

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Exhibit D

 

FIRST MARKET

 

APPLICATION PROCESS

 

FOR ANNUAL FWA

 

SOFTWARE RELEASE

 

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Exhibit D

 

FIRST MARKET APPLICATION PROCESS

 

FOR ANNUAL FWA SOFTWARE RELEASE

 

1.0 Scope.

 

Nortel Networks will provide an annual product software release designed to
enhance the functionality of the product. The content of the 2003 release shall
be agreed by both parties by contract start date. The content of subsequent
years’ releases shall be agreed via bi-monthly Product Enhancement Conferences
and by the end of September of the previous year. In the event that the annual
software release requires a software upgrade to the REM, this activity will be
carried out by Nortel Networks. This document outlines the process by which the
annual software releases and, if applicable, any associated REM upgrade will be
made available to AXtel.

 

2.0 Definition of First Market Application.

 

Each annual software release will be fully tested and verified by Nortel
Networks at its facilities before being made available to AXtel for deployment
in their network. Such testing will be within the constraints of the Nortel
Networks FWA R&D captive office environment i.e. testing will be in a simulated
“live air” environment which emulates the Customer network in so far as this is
practical. Each release will be accompanied by a “Release Content Description”
which will detail the contents of the release, system line up such as switch
configuration & software version and if applicable, any limitations. If deemed
necessary by AXtel, Nortel Networks will assist AXtel in verifying the
functionality of the annual software release within AXtel’s own FWA network.
This activity will be termed “First Market Application”.

 

3.0 Responsibilities for First Market Application.

 

The primary objective of the First Market Application is to ensure functionality
of the annual software release in the AXtel network and as such, responsibility
for the completion of this activity rests wholly with AXtel. Not withstanding
the foregoing, Nortel Networks will work in support of AXtel in the First Market
Application process. Note, all interaction and communication between Nortel
Networks and AXtel with respect to the First Market Application process will be
in English.

 

  3.1 AXtel Responsibilities in the First Market Application Process.

 

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  3.1.1 Notify Nortel Networks of the intention to conduct a First Market
Application with respect to an annual software release at least 3 (three) months
prior to the targeted delivery date for said software release.

 

  3.1.2 Provide Nortel Networks with a detailed test plan outlining the intended
test areas and clearly highlighting those areas for which Nortel Networks
support will be required. This plan must be made available to Nortel Networks at
least 2 (two) months prior to the targeted delivery date for said software
release.

 

  3.1.3 At least 1 (one) month prior to the targeted delivery date, publish the
final test plan.

 

  3.1.4 Make appropriate personnel, information and equipment available to
Nortel Networks as needed and in a timely manner to ensure proper planning so
adequate preparations can be made by Nortel Networks.

 

  3.1.5 Make appropriate personnel, information and equipment available to
Nortel Networks as requested and in a timely manner during the First Market
Application to facilitate proper execution of the Nortel Networks support
activity.

 

  3.1.6 Guarantee that any test equipment and/or FWA network equipment (such as
a “captive Office”) required by Nortel Networks in order to complete its support
activities is installed, commissioned, maintained and where applicable
calibrated as per manufacturer instructions.

 

  3.2 Nortel Networks Responsibilities in the First Market Application Process.

 

  3.2.1 Provide a draft software release note to AXtel at least four (4) months
prior to the targeted delivery date for said software to facilitate the
development of a detailed test plan.

 

  3.2.2 Where requested by AXtel, critique draft versions of the AXtel detailed
test plan to help ensure effectiveness.

 

  3.2.3 Deliver a complete list of the Nortel Networks requirements, within
reason, for the First Market Application activity at least 1 (one) month in
advance of the delivery date.

 

  3.2.4 Provide a technical resource from the R&D team to support AXtel in the
execution of their detailed test plan. Note this support resource will be
available in Monterrey for a total of no more than 20 (twenty) consecutive
calendar days and will be available to support AXtel from 09:00 to 18:00 local
time. If AXtel requires additional support to execute its detailed test plan,
this may be provided by Nortel Networks by prior arrangement. Any additional
support, where provided, will be billed to AXtel. This is not a commitment to
provide additional support.

 

  3.2.5 Once the Nortel Networks technical resource has completed those test
areas for which support has been requested, he/she will provide a signed copy of
the relevant section(s) of the test plan to AXtel. This will mark the completion
of the delivery of the software release to AXtel.

 

  3.2.6 Upgrade the AXtel REMs with the new software release where necessary.
The first REM upgrade for each release, if applicable, shall be programmed
within the First Market Application timeframe.

 

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  3.3 Exclusions from Nortel Networks Responsibilities in the First Market
Application Process.

 

  3.3.1 Installation and/or commissioning of new or replacement hardware.

 

  3.3.2 Interoperability testing between FWA and non-Nortel equipment or
software.

 

  3.3.3 Responsibility for delays in executing the detailed test plan caused by
unavailability of AXtel network or test equipment, AXtel personnel or lack of
network data.

 

  3.3.4 General implementation of the software release in the AXtel network.

 

4.0 Technical Issue Resolution.

 

Technical issues discovered during the First Market Application process will be
managed in accordance with section 1.1 of Exhibit B, Description of Technical
Assistance Support Services.

 

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