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Exhibit 10.3 NORTEL NETWORKS CORPORATION
MEETING OF THE BOARD OF DIRECTORS
JULY 30, 2004 EXTRACT * * * * Directors Remuneration RESOLVED, That, effective July 1, 2004, each member of a Board Committee who is not a
salaried employee of the Corporation, Nortel Networks Limited (NNL), or any of its or their
subsidiaries (each a Nortel Networks Company), shall be paid remuneration for services as a
member of each Board Committee on which the member sits a retainer fee at the rate of US$12,500 per
annum; except that a retainer fee at the rate of US$6,250 per annum shall be paid to any member of
a Board Committee who is also a member of an identical committee of the NNL Board of Directors; RESOLVED, That, effective July 1, 2004, any Chairman of a Board Committee (other than
the Audit Committee Chairman), who is not a salaried employee of a Nortel Networks Company, shall
be paid, in addition to the members annual Committee retainer, a retainer fee at the rate of
US$7,500 per annum, except that an additional retainer fee at the rate of US$3,750 per annum shall
be paid to any Chairman of a Board Committee (other than the Audit Committee Chairman) who is also
Chairman of an identical committee of the NNL Board of Directors; RESOLVED, That, effective July 1, 2004, the Chairman of the Audit Committee of the
Board of Directors shall be paid, in addition to the members annual Committee retainer, a retainer
fee at the rate of US$17,500 per annum, except that an additional retainer fee of US$8,750 per
annum shall be paid to the Chairman of the Audit Committee if he or she is also Chairman of the
Audit Committee of the NNL Board of Directors; RESOLVED, That the Directors entitled to the remuneration provided for in the
preceding resolutions shall be reimbursed for the reasonable travel and living and other expenses
properly incurred by them in attending any meeting of the Board of Directors or its Committees, or
for performing services as Directors;




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RESOLVED, That the remuneration provided for in these resolutions shall be paid
quarterly, in arrears, in United States dollars or, at the request of a Director, in the Canadian
dollar equivalent thereof; provided, however, that the remuneration to be paid to Directors for the
period from July 1, 2004 to December 31, 2004 shall be adjusted such that the aggregate
remuneration paid to Directors for the period from January 1, 2004 to December 31, 2004 shall be in
accordance with the annual remuneration provided for in these resolutions, notwithstanding the
payment of remuneration quarterly in arrears for the period from January 1, 2004 to June 30, 2004
in accordance with the resolutions approved by the Board of Directors of the Corporation on
December 18, 2003; RESOLVED, That, for greater certainty, Directors shall not be paid an annual retainer
for serving on the Board of Directors or an additional fee for attendance at Board of Directors or
Committee meetings; and Remuneration of Chairman of the Board RESOLVED, That, effective July 1, 2004, the annual compensation to be paid to Mr. L.R.
Wilson for his services as Chairman of the Board of the Corporation and NNL shall be reduced from
US$400,000 per year to US$360,000 per year, to be shared equally by the Corporation and NNL;
provided, however, that the remuneration to be paid to Mr. Wilson for the period from July 1, 2004
to December 31, 2004 shall be adjusted such that the aggregate remuneration paid to Mr. Wilson for
the period from January 1, 2004 to December 31, 2004 shall be in accordance with the annual
remuneration provided for in these resolutions, notwithstanding the payment of remuneration
quarterly in arrears for the period from January 1, 2004 to June 30, 2004 in accordance with the
resolutions approved by the Board of Directors of the Corporation on December 18, 2003.