##### 



EXHIBIT
10.85
 EXECUTION
COPY
 FIRST AMENDMENT TO THE
SHARE AND ASSET SALE AGREEMENT
 between
 NORTEL
 and
 ALCATEL LUCENT
 1




---



##### 



FIRST AMENDMENT TO THE
 SHARE AND ASSET SALE AGREEMENT
 THIS FIRST AMENDMENT TO THE SHARE AND ASSET SALE AGREEMENT Amendment société anonyme Purchaser Seller
 WHEREAS Share and Asset Sale Agreement
 WHEREAS
 NOW, THEREFORE
 ARTICLE 1
DEFINITIONS
  ARTICLE 2
FRENCH ACQUISITION STRUCTURE
 2.1 Contribution Agreement
 Convention dApport en Nature
 2.2 Certain Employee Liabilities
  2.3 Diselec Employment Liabilities Costs
  2




---



##### 



2.4 Shares Adjustment Price
   2.5 French Acquisition Structure costs
  ARTICLE 3
ADMINISTRATIVE SERVICES
  (3) mainly relating to the Business or, if for equipment used to provide
Administrative Services either (a) exclusively used by the Business or (b) mainly used by
the Business if (i) determined by the Steering Committee acting reasonably and in good faith
by majority vote provided such asset is required for the operation of the Business by the
Purchaser and (ii) is not or will not be used by a Designated Seller to provide any of the
services under the Transition Services Agreement.
 ARTICLE 4
REIMBURSEMENTS
  3




---



##### 



ARTICLE 5
PURCHASE PRICE ALLOCATION
   ARTICLE 6
CUSTOMER CREDIT NOTES
   
    
    Partner: 441,000.00$
    
    Orange: 4,500,000.00$
    
    Vodafone: 3,500,000.00$
   ARTICLE 7
REVISED EXHIBITS
 7.1 Exhibit 2.1.1.(3)
  7.2 Exhibit 5.9(A)
  7.3 Exhibit O
  4




---



##### 



7.4 Schedule 1.5
  7.5 Schedule 7
  7.6 JV License Agreements
  ARTICLE 8
CLOSING
       ARTICLE 9
CLOSING PAYMENT
  a)
    
    Amount allocated to the Assets and Assumed Liabilities: USD 292,747,647 (net of
a Pre-Closing Owned Equipment Shortfall of USD 1,252,353 as per Section 2.2.3(v));b)
    
    Plus balance of payment to be made as per Section 2.2.1: USD 26,000,000;c)
    
    Less Purchase Price reduction as per Section 2.2.3(i), (ii), (iii) and (vi):
USD 12,496,318;d)
    
    Net amount to be paid at Closing (a) +(b)  (c): USD 306,251,329 out of which
302,065,583 to be paid directly by the Purchaser to the Seller and the equivalent of
USD 4,185,746 to be paid in RMB to the Designated Sellers located in China.
 5




---



##### 



ARTICLE 10
ENTIRE AGREEMENT
  In the event of any irreconcilable conflict between this Agreement and any of the Local Asset Sale
Agreements and the License Agreement, the provisions of this Agreement shall prevail, regardless
that certain Local Asset Sale Agreement may be subject to different governing laws.
 ARTICLE 11
MISCELLANEOUS
 11.1 Other provisions
  11.2 Governing Law; Submission to Jurisdiction
   6




---



##### 



IN WITNESS WHEREOF
 NORTEL NETWORKS LIMITEDBy:
    
    /s/ A.A. NavaratnamName:
    
    A.A. NavaratnamTitle:
    
    Attorney-in-FactALCATEL LUCENTBy:
    
    /s/ L.A. SadiqName:
    
    L.A. SadiqTitle:
    
    Attorney-in-Fact
 7




---



##### 



Exhibit 2.1.1.(3)
 Bundled Contracts which are to be Unbundled and Assigned/Novated to Purchaser
on Closing Date
 Purchaser Entity to beContract Parties
    
    Contract Type
    
    Assigned/Novated toFrance Telecom S.A, located
at 6, Place dAlleray,
75505 Paris Cedex 15 and
Nortel Networks S.A.
located at Parc dActivités
de Magny-Châteaufort, 78117
Châteaufort.
    
    Corporate sourcing contract
n° 06 CG 643 for the
purchase of UTRAN products
and software releases and
related services
AND 
Maintenance Corporate
Sourcing Contrat for 3G
Ran Products N° 06 CG 645
    
    Alcatel CIT SA, 7/9 Avenue
Morane Saulnier, 78141
Vélizy, FranceMobistar SA/NV, Rue Colonel
Bourg 149, 1140 Brussels,
Belgium and Nortel Networks
NV, , a Ikaroslaan 14,
B-1930 Zaventem, Belgium
    
    Local Implementation
Contract N°9262 for the
Supply of 3G Radio Access
Products and Software
Releases and associated
Services on Belgium
territories.
AND 
Local Implementation
Contract for 3G RAN
Maintenance N°9264
    
    Alcatel Bell NV,
Copernicuslaan 50, B-2018
Antwerpen, Belgium.ORANGE FRANCE, 1 avenue
Nelson Mandela 94745
Arcueil Cédex,
And Nortel Networks SA,
Parc dActivités de Magny
Châteaufort, 78117
Châteaufort
    
    Contrat dapplication
N°416 618 au Corporate
Sourcing Contract
N°06CG643 pour la
fourniture de produits, de
paliers logiciels et
services associés relatifs
aux réseaux UMTS 
AND 
Contrat dApplication N°
416 619 au Corporate
Sourcing Contract N°
06CG645 pour la fourniture
de prestation de
maintenance relatifs au
réseaux UMTS
    
    Alcatel CIT SA, 7/9 Avenue
Morane Saulnier, 78141
Vélizy, France
 8




---



##### 



Purchaser Entity to beContract Parties
    
    Contract Type
    
    Assigned/Novated toPTK Centertel Sp. z o.o.
ul. Skierniewicka 10a,
01-230 Warszawa, Poland,
and Nortel Networks Polska
Sp. z o. o., ul.
Nowogrodzka 47a, 00-695
Warszawa, Poland
    
    Implementation Contract
for corporate sourcing
contract n° 06CG643 for
the purchase of UTRAN (3G)
products and software
releases and related
services 
AND 
Implementation Contract
for corporate sourcing
contract N° 06CG645
maintenance for 3G RAN
productsOrange Slovensko, a.s.,
Prievozská 6/A, 821 09
Bratislava, Slovak
Republic, and Nortel
Networks SA, Parc
d  ́Activités de
Magny-Chateaufort, 78117
Chateaufort, France and
Nortel Networks Slovensko,
s.r.o., Obchodná 2, 811 06
Bratislava, Slovak Republic
    
    Implementation Contract
for corporate sourcing
contract n° 06CG643 for
the purchase of UTRAN (3G)
products and software
releases and related
services 
AND 
Implementation Contract
for corporate sourcing
contract N° 06CG645
maintenance for 3G RAN
productsVodafone Ltd Vodafone
House, The Connection,
Newbury, Berkshire RG14 2FN
and Nortel Networks UK Ltd,
Maidenhead Office Park,
Westacott Way, Maidenhead,
Berkshire SL6 3QH.
    
    UMTS Access only
Contract of Adherence
covering UMTS Access
Deliverables and related
Services for UK. (*)
    
    Alcatel Telecom Limited
Christchurch Way, Greenwich
London SE10 0AGVodafone Omnitel N.V.
whose registered address is
in Amsterdam and
administrative and
operational office Ivrea,
via Jervis 13  10015
Torino, Italy and Nortel
Networks S.p.A , Via
Montefeltro 6, 20156 Milan,
Italy.
    
    UMTS Access only
Contract of Adherence
covering UMTS Access
Deliverables and related
Services for Italy. (*)Vodafone España S.A.,
Parque Empresarial La
Moreleja, Avda. De Europa,
1, 28108 Alcobendas,
Madrid, Spain and Nortel
Networks Hispania S.p.A
    
    UMTS Access only
Contract of Adherence
covering UMTS Access
Deliverables and related
Services for Spain. (*)
    
    Alcatel España S.A.
Ramírez de Prado 5
28045 Madrid
 9




---



##### 



Purchaser Entity to beContract Parties
    
    Contract Type
    
    Assigned/Novated toCamino del Cerro de Los
Gamos, 1, Edificio 6,
Pozuelo de Alarcon, Madrid
28224, Spain.Vodafone Comunicações
Pessoais, S.A. ,
Avenida D. João II
-Lote 1.04.01, 8o Piso,
Parque das Nações, 1998-017
Lisboa, Portugal and
Northern Telecom
(Portugal) S.p.A whose
registered address is at
Edificio Tivoli-Forum,
Avenida da Liberdade, 180
A-3, 1250-146 Lisboa,
Portugal.
    
    UMTS Access only
Contract of Adherence
covering UMTS Access
Deliverables and related
Services for Portugal. (*)
    
    Alcatel Portugal SA
S. Gabriel
2750 CascaisAustria Telecommunication
GmbH (now Kapsch CarrierCom
AG) and Nortel Networks
S.A. (for supply of
Hardware and Software) and
Nortel Networks Austria
GmbH (for installation and
commissioning services).
    
    UMTS Access supply and
related installation
services to end customer
Mobilkom.Kapsch CarrierCom AG
and
Nortel Networks Austria GmbH
    
    UMTS Access support
services to end customer
Mobilkom.Andrew Corporation, 3
Westbrook Corporate Center,
Suite 900, Westchester,
Illinois 60154 and Nortel
Networks Limited, 8200
Dixie Road, Suite 100,
Brampton, Ontario, Canada
    
    OEM MicroNode BEdge Wireless LLC, 650 SW
Columbia, Suite 7200, Bend,
Oregon, 97702 and Nortel
Networks Inc, 2221 Lakeside
Boulevard, Richardson,
Texas 75082.
    
    TrialBEN HUR L. TRADE & SERVICES
LTD. 
19 Haknesset Hagdola
Street, Tel Aviv, Israel
62917 and Nortel Networks
Israel (Sales and
Marketing) Limited.
    
    Representative Agreement
for UMTS business with
Partner.
    
    Alcatel Telecom Israel 
94 Em Hamoshavot Rd. 
Park Azorim, Peth-Tikva
Israel
 
 (*) These documents are the softcopies received by the e-mails mentioned below: 10




---



##### 



Robert Shales <rshales@nortel.com>
  Robert Shales <rshales@nortel.com>
  Robert Shales <rshales@nortel.com>
  Pascale-LAW Frossard <pascalef@nortel.com>
  Pascale-LAW Frossard <pascalef@nortel.com>
   Robert Shales <rshales@nortel.com>
 
 Robert Shales <rshales@nortel.com>
  Pascale-LAW Frossard <pascalef@nortel.com>
  11




---



##### 



Seller Contracts to be Assigned/Novated to Purchaser on Closing Date
 Purchaser Entity tobe Assigned/NovatedContract Parties
    
    Contract Type
    
    toBouygues Telecom,
Arcs de Seine 
20, quai du Point
du Jour  92100
Boulogne-Billancourt, and Nortel
Networks SA Parc
dActivités de
Magny-Châteaufort,
78117 Châteaufort.
    
    Conditions Générales de
fourniture et de
maintenance de reseau
telecom 3G et de
prestations associees
And
Conditions Particulières
    
    Alcatel CIT SA, 7/9
Avenue Morane
Saulnier, 78141
Vélizy, FranceQUALCOMM
Incorporated, 5775
Morehouse Drive,
San Diego, CA 92121
and Nortel Networks
Inc
    
    System integration and
interoperability testing
between the QUALCOMM
equipment and the Nortel
equipmentBeijng Sun Dong An
Co., Ltd and Nortel
Networks (China)
Limited
    
    Beijing Property Lease
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiChina Mobile
Communications
Group Corporation
and Nortel Networks
(China) Limited
    
    Construction of China
Mobile Lab for 3G Trial
Systems (Phase I) Project
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiChina Mobile
Communications
Company and Nortel
Networks (China)
Limited.
    
    China Mobile 3G Lab R4
Equipment Trial Project
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiGuangdong Telecom
Co. Ltd Science and
Technology Research
Institute and
Nortel Networks
(China) Limited
    
    IOT Trial Agreement
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiHebei Mobile
Communications Co.,
Ltd and Nortel
Networks (China)
Limited
    
    Trial
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, Shanghai
 12




---



##### 



Purchaser Entity tobe Assigned/NovatedContract Parties
    
    Contract Type
    
    toHunan Mobile
Communications Co.,
Ltd and Nortel
Networks (China)
Limited
    
    Equipment Trial Agreement,
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiChina Netcom Group
Company Sichuan
Branch and Nortel
Networks (China)
Limited
    
    Equipment Trial Agreement
    
    Alcatel Shanghai
Bell Company
Limited, 388 Ning
Qiao Road Jin Qiao
Export Processing
Zone Pudong New
Area, ShanghaiNokia Corporation,
Keilalahdentie 4,
02150 Espoo,
Finland and Nortel
Networks UK Ltd,
Maidenhead Office
Park, Westacott
Way, Maidenhead,
Berkshire SLG 3QH.
    
    Return of Node Bs and RNCs
from O2 Networks
    
    Alcatel CIT, Avenue
Charles de Gaulle,
Ormes, 45915 ORLEANS
CEDEX 9LeasePlan Fleet
Management (Polska)
Sp.z o.o., ul.
Bokserska 66,
02-0690 Warsaw
Poland and Nortel
Networks Polska Sp.
z o., ul
Nowogrodzka 47a,
00-695 Warsaw.
    
    Vehicle lease for PolandLeasePlan UK Ltd, 
165 Bath Road, 
Slough, Berkshire,SL1 4AA and Nortel
Networks (UK) Ltd.
    
    Vehicle lease for UKTBA
    
    Vehicle lease for FranceTBA
    
    Vehicle lease for ItalyTBA
    
    Vehicle lease for CanadaTBA
    
    Vehicle lease for ChinaTBA
    
    Vehicle leases for SlovakiaLease Plan Portugal
- Comercio e
Aluguer de
Autoóveis e
Equipamentos
Unipessoal, Lda.
Quinta da Fonte -
Edifcio Gil Eanes,
Piso 3 2770-192
Paço de Arcos.
    
    Vehicle lease for Portugal
 13




---



##### 



Purchaser Entity tobe Assigned/NovatedContract Parties
    
    Contract Type
    
    toPessoa Colectiva no
502167610
Matriculada sob o
no 1883 na
Convservatório do
Reg. Com. De
CascasisLEASE PLAN
SERVICIOS, S.A.,
Sociedad
Unipersonal Calle
Francisca Delgado,
núm. 9, 28109 -
ALCOBENDAS
(MADRID), 
C.I.F. A-78007473
    
    Vehicle lease for SpainNortel Networks SA
and Alcatel,
7-9avenue Morane
Saulnier, 78141
Vélizy, France
    
    Pre Deal UMTS Access
Single Customer Reseller
Agreement for Trial
Purposes.
    
    Société Française de
Radiocommunication
(SFR).Nortel Networks SA
and Alcatel,
7-9avenue Morane
Saulnier, 78141
Vélizy, France
    
    Pre Deal UMTS Access
Single Customer Reseller
Agreement for Trial
Purposes.
    
    Telecom Italia MobileNortel Networks SA
and Alcatel,
7-9avenue Morane
Saulnier, 78141
Vélizy, France
    
    Pre Deal UMTS Access
Single Customer Reseller
Agreement for Field Test
Purposes.
    
    TMN PortugalNortel Networks SA
and Alcatel CIT, 12
rue de la Baume,
75008 Paris, France
    
    Pre Deal SALES SUPPORT
AGREEMENT for pre-sales
support services.
    
    SFR
 14




---



##### 



Exhibit 5.9 (A)
 Bundled/Unbundled Contracts where UMTS Access parts are to be Sub-Contracted to
Purchaser on Closing Date
 Purchaser Entity to beContract Parties
    
    Contract Type
    
    Sub-Contracted toMobisle
Communications Ltd.,
at Spencer Hill,
Marsa, Malta c/o
Maltacom plc, and
Nortel Networks SA
Parc dActivités de
Magny-Châteaufort,
les Jeunes Bois 
Châteaufort, 78928
cedex 9, France
    
    UMTS Supply Contract
and Support and
Service Agreement
    
    Alcatel CIT SA, 7/9 Avenue Morane Saulnier,
78141 Vélizy, FranceO2 (UK) Limited; O2
(Germany) GMBH & CO.
OHG; O2
Communications
(Ireland) Limited;
Nortel Networks UK
Limited; Nortel
Networks Germany GMBH
& CO KG and Nortel
Networks (Ireland)
Limited.
    
    Supply of Mobile
telecommunications
network equipment and
related services in
the UK, Germany and
the Republic of
IrelandO2 (UK) Limited and
Nortel Networks UK
Limited
    
    Support of O2 UK UMTS
Access NetworkO2 (Germany) GMBH &
CO. OHG and Nortel
Networks Germany GMBH
& CO KG
    
    Support of O2 Germany
UMTS Access NetworkO2 (UK) Limited and
Nortel Networks UK
Limited
    
    Training for O2 UK on
UMTS Access ProductsO2 (Germany) GMBH &
CO. OHG and Nortel
Networks Germany GMBH
& CO KG
    
    Training for O2
Germany on UMTS
Access Products
 15




---



##### 



Purchaser Entity to beContract Parties
    
    Contract Type
    
    Sub-Contracted to*Partner
Communications
Company Ltd. 8 Amal
St., Afek Industrial
Park, Rosh Haayin,
Israel and Nortel
Networks Israel
(Sales and Marketing)
Limited.
    
    Agreement for the
supply of a 3G UMTS
network (both Core &
Access) and other
telecommunications
systems, equipment
and related services
    
    Alcatel Telecom Israel
94 Em Hamoshavot Rd.
Park Azorim, Peth-Tikva
Israel *
 
 *

Note: It is intended that the Partner Contract will be unbundled and transferred however there is
a risk that this will not be achieved by Closing and therefore there may be a need to sub-contract
this to Alcatel on a short term basis. This will be done on a full back-to-back basis as if the
contract has been transferred. 16




---



##### 



EXHIBIT O
 Modification of Exhibit O of the
Share and Asset Sale Agreement
 17




---



##### 



CONTRAT DE CESSION DACTIONS
 ENTRE:
 Nortel Networks S.A. ·
 NN SA Cédant
  ET:
 Alcatel CIT ·
 Cessionnaire
  Parties
 IL EST RAPPELE CE QUI SUIT:
 Share and Asset Sale Agreement Share and Asset Sale Agreement
 Share and Asset Sale Agreement Société
  18




---



##### 



CECI ETANT EXPOSE, IL A ETE CONVENU CE QUI SUIT :
 ARTICLE 1   ACHAT ET VENTE DES ACTIONS
  Prix Share and Asset Sale Agreement
 ARTICLE 2  AJUSTEMENT DU PRIX
 2.1
    
    Ajustement de lActif Net
 lActif Net
 Montant Complémentaire
 2.2
    
    Ajustement lié aux Passifs Sociaux
 Schedule  Employment Provisions Share
and Asset Sale Agreement
 ARTICLE 3  PROPRIETE  JOUISSANCE
   ARTICLE 4  DECLARATION SPECIFIQUE DES PARTIES
 Share and Asset Sale Agreement Share and Asset Sale Agreement Share and Asset Sale
Agreement
 ARTICLE 5  DISPOSITIONS GENERALES
 19




---



##### 



5.1
    
    Frais. Le Bénéficiaire supportera lintégralité des frais et coûts encourus en
relation avec la lexécution du présent contrat et des opérations quil prévoit. Les droits
denregistrement relatifs à la cession des Actions seront intégralement supportés par le
Cessionnaire.5.2
    
    Droit applicable. Le présent contrat est régi par le droit français.5.3
    
    Clause attributive de juridiction. Tout litige ou différend relatif à
linterprétation du présent contrat relèvera de la compétence exclusive du Tribunal de
Commerce de Paris.5.4
    
    Pouvoir. Tous pouvoirs sont donnés au porteur dun original des présentes ou
dextraits certifiés conformes des présentes constatant la réalisation définitive de la
cession des Actions pour laccomplissement de toutes les formalités légales.
 
 Nortel Networks S.A.
Par: [·]
    
    Alcatel CIT
Par: [·]
 20




---



##### 



EXHIBIT 1.5
 Modification of Schedule 1.5 of the
Share and Asset Sale Agreement
 21




---



##### 



Schedule 7
 22




---



##### 



Exhibit 5
  23




---



##### 



Exhibit 7.6
 JV License Agreements
 24