Document:

ex10-51

 

EXHIBIT 10.51

AMENDMENT 003

TO

iDEN SUBSCRIBER SUPPLY AGREEMENT

BETWEEN

MOTOROLA, INC.

AND

NEXTEL COMMUNICATIONS, INC.

AND

NEXTEL INTERNATIONAL, INC.

This Amendment is between Motorola, Inc. a Delaware corporation (“Motorola”),
Nextel Communications, Inc. (“Nextel”), and Nextel International, Inc.
(“Customer”) and amends the iDEN Subscriber Supply Agreement dated as of
November 4, 1991, as heretofore amended, modified supplemented or otherwise
revised (“Subscriber Supply Agreement”). Capitalized terms used but not defined
in this Amendment 003 have the meanings given to them in the Subscriber Supply
Agreement.

WHEREAS, the parties have entered into Amendments 001 and 002 to the Subscriber
Supply Agreement effective as of January 1, 2000, and January 1, 2001,
respectively, to encourage efforts to enhance the reputation of iDEN in the
Customer’s international markets by establishing improvement plans for iDEN
subscriber delivery; and

WHEREAS, the parties have mutually agreed to enter into this Amendment 003 to
the Subscriber Supply Agreement in order to adjust certain terms to reflect
current market conditions.

WHEREAS, this Amendment shall set forth the new maximum rebates for years 2002
and 2003 under the Subscriber Supply Agreement

NOW THEREFORE, in consideration of their mutual promises set forth herein and
for other good and valuable consideration received by each of them, the parties
hereto agree to amend the Subscriber Supply Agreement as follows:

     1.     Amendment 001 to the Subscriber Supply Agreement is hereby modified by
changing the maximum rebates for years 2002 and 2003 to [*] and [*],
respectively. Accordingly, the columns of Required Number () of Subscriber
Units for years 2002 and 2003 are hereby amended to be [*] and [*],
respectively. Therefore, the amended first paragraph

	 	 	 	 	 	 	 
	Motorola/Nextel

12-07-01 D7	 	 	
1
	 	 	Amnt 003 to Subscriber Agrmt

*     Confidential portions omitted and filed separately with the Securities and
Exchange Commission pursuant to an application for confidential treatment
pursuant to Rule 24b-2 under the Securities Act of 1934, as amended.

 

 

of Section A. of the Amendment 001 to the Subscriber Supply Agreement is
hereby amended and restated in its entirety as follows:

		
	 	     “A. Customer shall be entitled to the below stated rebate(s) upon the
purchase of the required number of subscribers units set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Column 1	 	2	 	3	 	4
	 	 	 	 	 	 	 
	Year	Required # of Subscriber Units	 	Maximum Rebate	 	Per Subscriber Reduction
	
	 	
	 	

	2000
	 	 	[*]	 	 	 	[*]	 	 	 	[*]	 
	2001
	 	 	[*]	 	 	 	[*]	 	 	 	[*]	 
	2002
	 	 	[*]	 	 	 	[*]	 	 	 	[*]	 
	2003
	 	 	[*]	 	 	 	[*]	 	 	 	[*]	 

		
	 	
(i)  ...”

		
	 	2. The above Maximum Rebates and Required Number of Subscriber Units
supersede all Maximum Rebates and Required Number of Subscriber Units,
respectively, including those set forth in the Amendment 001 to the
Subscriber Supply Agreement.

		
	 	3. The Subscriber Supply Agreement shall remain in full force and effect
except as expressly amended hereby. This Amendment 003 is effective as of
January 1, 2002 with respect to and for all purchases of subscriber units
accruing on or after such date.

		
	 	4. This Amendment 003 may be executed in any number of counterparts and by
the different parties on separate counterparts, and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Amendment 003.

[signature page follows]

	 	 	 	 	 	 	 
	Motorola/Nextel

12-07-01 D7	 	 	
2
	 	 	Amnt 003 to Subscriber Agrmt

*     Confidential portions omitted and filed separately with the Securities and
Exchange Commission pursuant to an application for confidential treatment
pursuant to Rule 24b-2 under the Securities Act of 1934, as amended.

 

 

	 	 	IN WITNESS WHEREOF, this Amendment has been executed and delivered by the
parties as of the 10 day of December, 2001.

	 	 	 
	MOTOROLA , INC	 	
NEXTEL INTERNATIONAL, INC.
	 
	By:   /s/ Charles F. Wright
	 	
By:   /s/ Robert J. Gilker

	

	 	

	 
	Name: Fred C. Wright	 	
Name:    Robert J. Gilker
	
 	 	

	 
	Title: Senior Vice President &
        General Manager
	 	
Title:    Vice President
	          GTSS-NA	 	

	 	 	 
	MOTOROLA, INC	 	
NEXTEL COMMUNICATIONS, INC.
	 
	By:    /s/ Bob Suastegui	 	By:
	

	 	

	 
Name: Bob Suastegui	 	Name:
	
 	 	

	 
	Title: Global Account Manager	 	Title:
	         
        Nextel International, Inc.
          GTSS-NA	 	

	 	 	 	 	 	 	 
	Motorola/Nextel

12-07-01 D7	 	 	
3
	 	 	Amnt 003 to Subscriber Agrmt

*     Confidential portions omitted and filed separately with the Securities and
Exchange Commission pursuant to an application for confidential treatment
pursuant to Rule 24b-2 under the Securities Act of 1934, as amended.<PAGE>
 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

                                                                 EXHIBIT 10.1.14

                                  AMENDMENT 003
                       AVAILABILITY/OUTAGE GOALS FOR 2001
                                       TO
                    IDEN INFRASTRUCTURE [*] SUPPLY AGREEMENT
                                     BETWEEN
                                  MOTOROLA INC.
                                       AND
                           NEXTEL COMMUNICATIONS INC.

This Amendment is between Motorola, Inc., a Delaware corporation ("Motorola"),
and Nextel Communications, Inc. ("Customer") and amends the iDEN Infrastructure
[*] Supply Agreement dated as of April 13, 1999, as previously amended ("[*]
Supply Agreement").

WHEREAS, the parties have mutually agreed to enter into this amendment to the
[*] Supply Agreement in order to encourage efforts to enhance the reputation of
iDEN in the United States market place by establishing improvement plans for
Customer operations and Motorola support of Customer's iDEN systems in the
United States; and

WHEREAS, the parties previously set system availability and outage goals and
penalties for 1999 and 2000 and they now want to set new goals and penalties for
2001; and

WHEREAS, this Amendment shall (i) set joint Customer/Motorola 2001 system
availability goals ("Overall System Uptime") and penalties if they are not
reached and 2001 system outage ("System Outages") penalties by Motorola and (ii)
supersede the availability and outage goals and penalties set for 1999 and 2000;
and

WHEREAS, the parties agree to jointly develop plans and procedures capable of
meeting the Overall System Uptime goals and dramatically reducing System
Outages; and

NOW THEREFORE, in consideration of their mutual promises the parties agree as
follows.

I.      OVERALL SYSTEM AVAILABILITY

        A.      System availability will be measured on a 24-hour basis as
                reported in the customer Uptime Report. The system availability
                measurement for penalty purposes shall only be based on the
                period between the hours of 7:00 AM and 11:00 PM. On a monthly
                basis Customer will identify those outages on the Uptime Report
                Customer feels are Motorola's obligations, provide the Uptime
                Report to Motorola, and Motorola and Nextel will mutually agree
                to those outages for which Motorola is responsible.

                                       1

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

<PAGE>

 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

B.      Motorola and Customer jointly agree that the monthly goals for Overall
        System Uptime are between the hours of 7:00 AM and 11:00 PM for 2001 and
        shall be based solely on [*]. The goals shall be:

                 1.   [*]
                 2.   [*]
                 3.   [*]
                 4.   [*]
                 5.   [*]
                 6.   [*]
                 7.   [*]
                 8.   [*]
                 9.   [*]
                 10.  [*]
                 11.  [*]
                 12.  [*]

C.       [*]

D.       [*]

                 1.   [*]

                                       2

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

<PAGE>

 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

                2.       [*]
                3.       [*]
                4.       [*]

II.   SYSTEM OUTAGE

A.       System Outage Penalty

                1.      Motorola will pay Customer on a per hour basis for each
                        system outage as defined below [*]:

                                a)       [*]
                                b)       [*]
                                c)       [*]
                                d)       [*]
                                e)       [*]
                                f)       [*]

                 2.   [*]
                 3.   [*]
                 4.   The above penalties will be assessed upon notification to
                      Motorola CNRC by Nextel of an event and continue until
                      such event has been corrected and the element is deemed to
                      be in service and fully functional, less any time required
                      to collect failure logs. [*]
                 5.   [*]

                                       3

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

<PAGE>

 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

B.     System Outage Exclusions
                 1. [*]
                 2. [*]
                 3. [*]
                 4. [*]
                 5. [*]
                 6. [*]
                 7. [*]
                 8. [*]
                 9. [*]
                 10.[*]
                 11.[*]
                 12.[*]

III.  GENERAL
      A.  [*]

      B.  [*]
                 1. [*]
                 2. [*]

                                       4

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

<PAGE>

 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

C.   [*]
         1.   [*]

D.       Infrastructure Notice of Claim
                  1. Customer must make notice of claim in writing to Motorola
                  monthly (by the 7th day of the following month). Such claim
                  must be signed by the Nextel Director of NTS or his/her
                  designee. The Motorola Vice President of Sales and Operations
                  for Nextel or his/her designee shall endorse the claim to
                  indicate Motorola's acceptance.
                  2. Nextel and Motorola will use a predefined, agreed upon,
                  written process for calculating monthly outages and penalties.
                  3. Motorola agrees to distribute all direct cause outage
                  reports to the Chief Operating Officer, Chief Technology
                  Officer, Executive Vice President of Engineering and
                  Operations, and the Vice President and Director of Operations
                  at Customer.

E.       Other Provisions
                 1.   The parties recognize that to insure minimum restoration
                      time, it may be necessary to forego collection of valuable
                      trace data that would allow for root cause analysis. If
                      customer desires to extend outage duration to collect
                      trace data, Motorola liability terminates upon such
                      notice.
                 2.   The compensation provisions in this Amendment are
                      effective upon execution of this Amendment, but are made
                      retroactive to January 1, 2001. These penalty provisions
                      shall be in effect through December 31, 2001.

F.       Extension of Penalty Provisions
         The parties agree to negotiate in good faith on modification or
         extension of these provisions beyond End of the Year 2001 based on
         perceived benefit of these provisions and changes in system
         performance. A formal review of the penalty program will be
         conducted at the end of Q4 2001.

G.       Dispute Resolution
         Disputes and Dispute Resolution with regards to this
         Penalty/Incentive program will be resolved as outlined in paragraph
         30.0 of the [*] Infrastructure Supply Agreement.

H.       Effective as of January 1, 2001 this document supersedes the
         "AMENDMENT 003 AVAILABILITY/OUTAGE GOALS FOR 2001 TO iDEN
         INFRASTRUCTURE [*] SUPPLY AGREEMENT BETWEEN MOTOROLA INC. AND
         NEXTEL COMMUNICATIONS INC." that was signed on October 5, 2001. The
         parties inadvertently signed the wrong version of such document and
         have executed this agreement to rectify such error. The contents of
         the document signed on and dated October 5, 2001 are hereby null
         and void and shall be replaced by this document.

                                       5

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

<PAGE>

 Confidential: Use or disclosure of this document is subject to the restriction
                        of the Confidentiality Statement

The iDEN Infrastructure [*] Supply Agreement shall remain in full force and
effect except as expressly amended hereby.

IN WITNESS WHEREOF, this Amendment has been executed and delivered by the
parties set forth below.

<TABLE>
<CAPTION>
Motorola, Inc.                                                Nextel Communications, Inc.
<S>     <C>                                                  <C>      <C>
By:      /s/ Tom Stack                                        By:      /s/ Kathryn Hinton
         ---------------------------------------------                 -----------------------------------------
          (Authorized Signatory)                                       (Authorized Signatory)

Name:    Tom Stack                                            Name:    Kathryn Hinton
         ---------------------------------------------                 -----------------------------------------

Title:   Director of Finance                                  Title:   Director-SCM
         ---------------------------------------------                 -----------------------------------------

Date:    11/13/2001                                           Date:    11/08/2001
         ---------------------------------------------                 -----------------------------------------
</TABLE>

* Confidential portions omitted and filed separately with the Commission
pursuant to an application for confidential treatment pursuant to Rule 24b-2
under the Securities and Exchange Act of 1934, as amended.

                                       6

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