Document:

exv10w3

 

Exhibit 10.3

NORTEL NETWORKS LIMITED

as Seller

 

and

 

FLEXTRONICS TELECOM SYSTEMS LTD.

as Purchaser

 

SECOND AMENDING AGREEMENT

February 7th, 2005

 

 

Stikeman Elliott LLP

 

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AMENDING AGREEMENT

     THIS SECOND AMENDING AGREEMENT made as of the 7th day of February, 2005 (“Amending
Agreement”) by and among Flextronics Telecom Systems Ltd., a
Mauritius corporation (“Purchaser”),
Flextronics International Ltd., a Singapore corporation acting through its Hong Kong office (the
“Guarantor”) and Nortel Networks Limited, a Canadian
corporation (“Seller”).

     WHEREAS the Purchase, the Seller and the Guarantor (collectively the “Asset Purchase Agreement
Parties”) entered into an asset purchase agreement dated as of June 29, 2004, whereby the Seller
agreed to sell, and the Purchaser agreed to purchase, or causes the Designated Purchasers to
purchase, as the case may be, the Assets related to the Operations (the “Purchase Agreement”);

     AND WHEREAS the Asset Purchase Agreement Parties entered into an amending agreement dated as
of the 1st day of November, 2004 (the “First Amending Agreement”), whereby the Parties
amended certain terms and conditions of the Purchase Agreement and certain of the Transaction
Documents;

     AND WHEREAS the Purchaser and Nortel Networks U.K. Limited completed as of the 1st
day of November, 2004 the Facility/Design Closing pertaining to the Design Operations carried on by
the UK Design Employees (“UK Design Closing”);

     AND WHEREAS the Purchaser, Seller and Nortel Networks Technology Corporation completed as of
the 1st day of November, 2004 the Facility/Design Closing pertaining to the Design
Operations carried on by the Canada Design Employees at the Ottawa Lab 2/Lab 10 Facility (“Canada
Design Closing”);

     AND WHEREAS the Asset Purchase Agreement Parties have agreed to complete the Closing for the
Montreal Facilities on February 7, 2005 (the “Montreal Closing”), and have agreed to enter into
this Amending Agreement concurrently with this transaction; and

     AND WHEREAS the Asset Purchase Agreement Parties have further agreed to amend certain
additional terms and conditions of the Purchase Agreement and certain of the Transaction Documents
in accordance with the provisions of this Amending Agreement;

     NOW THEREFORE, in consideration of the mutual covenants herein contained, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

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ARTICLE 1

DEFINITIONS

Section 1.1     Capitalized Terms and Section References

     All capitalized terms unless otherwise defined herein shall have the meaning ascribed thereto
in the Purchase Agreement, and all section references unless otherwise specified shall refer to the
Purchase Agreement.

ARTICLE 2

EMPLOYMENT OFFERS BY AFFILIATES OF THE PURCHASER

TO ONTARIO AND QUEBEC EMPLOYEES AND U.S. EMPLOYEES

Section 2.1     Ontario and Quebec Employees

     The parties hereby acknowledge that for purposes of Exhibits D-3 and D-3A and Exhibits D-5,
D-5B and D-5C, and the schedules thereto, the term “Designated Purchaser”, insofar as it relates to
the Ontario Employees and Quebec Employees, shall refer to Flextronics (Canada) Inc.

Section 2.2     U.S. Employees

     The parties hereby acknowledge that for the purposes of Exhibit D-9, D-9A and D-9B, and the
schedules thereto, the term “Designated Purchaser” refers to Flextronics International U.S.A., Inc.

ARTICLE 3

AMENDMENTS TO THE PURCHASE AGREEMENT

Section 3.1     Effective Time

     Section 1.1(51) shall be amended by removing the word “on” and replacing it with the words
“the day immediately after”.

Section 3.2     Mindready Employees

     Section 5.31 (1)(b) is hereby deleted in its entirety and replaced with the following revised
Section:

     “(b) the Mindready contract shall be renegotiated such that (i) the portion of such contract
relating to calibration services provided by those Mindready employees who are the subject of the
Grievance shall be terminated prior to the Designated Facility Closing, and (ii) the remaining
portion of the services under such contract shall be subject to an amendment to the existing
contract, or an amended and restated contract, or a new contract, which shall be added to the list
of Assumed Contracts.”

 

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Section 3.3     Security Documentation

     Section 1.1(206) is hereby amended by adding after the word “Inventory” the words “transferred
at the Closings of the Montreal Facilities and Calgary Westwinds Facility, and either the Monkstown
Facility or the Chateaudun Facility Closing, as the case maybe,” and deletion of the words “minus
one hundred million dollars ($100,000,000)” and replacing them with the words “delivered pursuant
to these Closings.”

     Section 5.32 is hereby amended by removal in the first sentence of the words “the first
Facility/Design Closing” and replacing them with the words “each of the Montreal Facilities Closing
and Calgary Westwinds Facility Closing, and one of either the Monkstown Facility Closing or the
Chateaudun Facility Closing, as the case maybe,” and inserting after the word “Inventory” the words
“transferred at each such Closing”. A new sentence is also inserted in Section 5.32 immediately
after the first sentence to read, “The Parties shall determine which of the Monkstown Facility
Closing or the Chateaudun Facility Closing will not require its transferred Assets to be Secured
Assets; provided, however, that if the Parties cannot reach agreement in this respect, than the
Facility of the two which has a Facility/Design Closing Net Book Value closest to one hundred
million dollars ($100,000,000) shall not require its transferred Assets to be Secured Assets.”

Section 3.4     Loaned Employee Agreement

     Section 8.1(3)(d) shall be amended by deleting the word “first” and replacing it with the word
“second”.

     Section 8.2(3)(g) shall be amended by deleting the word “first” and replacing it with the word
“second”.

Section 3.5     Leased Equipment

     Section 4.22 is deleted in its entirety and replaced with the following revised section:

     “Schedule 1.1(125) contains an accurate and complete list of all Leased Equipment. True and
complete copies of the leases with respect to all Leased Equipment have been provided to Purchaser.
To the extent Seller provided Purchaser with summary information relating to the Schedule 1.1(125)
such information shall, with respect to the matter(s) being summarized, be accurate and shall be
consistent with the information on Schedule 1.1(125).”

Section 3.6     Real Property Lease

     Section 1.1(194) shall be amended by inserting after the words “the Parties” the words “(save
an except for the Facilities in Canada, in which case the lessee shall be Flextronics (Canada)
Inc.) and not the Purchaser or Designated Purchaser)”.

 

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Section 3.7     Amended and Restated Transaction Documents

     All references to any Transaction Document in the Purchase Agreement shall be to that
agreement, as amended by the parties from time to time.

ARTICLE 4

DELIVERED AND REVISED SCHEDULES

Section 4.1     Delivered Schedules to the Purchase Agreement

     In relation to the Montreal Closing and pursuant to Section 5.1(3) of the Purchase Agreement,
the parties hereby acknowledge delivery by the Seller or Purchaser, as the case may be, and
acceptance by the Seller or Purchaser, as the case may be, of the delivered schedules attached to
this Amending Agreement as Exhibit “A”. For greater certainty, these schedules are provided only in
relation to the Montreal Closing.

Section 4.2     List of Delivered Schedules

     The schedules delivered pursuant to Section 4.1 of this Agreement are listed on Exhibit “B”.

ARTICLE 5

FULL FORCE

Section 5.1     Full Force and Effect

     Other than for the foregoing amendments, the Purchase Agreement and certain schedules thereto,
all other agreements agreed to or entered into as of June 29th, 2004, and the First Amending
Agreement, shall remain in full force and effect, unamended.

ARTICLE 6

GOVERNING LAW

     This Amending Agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein.

[Remainder of page intentionally left blank]

 

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     IN WITNESS WHEREOF the parties hereto have duly executed this Amending Agreement as of the
day, month and year first above written.

	 	 	 	 	 
	 	FLEXTRONICS TELECOM SYSTEMS LTD.

 	 
	 	By:  	/s/ M. Marimuthu
 	 
	 	 	Name:  	Manny Marimuthu 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 
	 	NORTEL NETWORKS LIMITED

 	 
	 	By:  	/s/ Peter Murphy
 	 
	 	 	Name:  	Peter Murphy 	 
	 	 	Title:  	VP Global Supply

Chain Operations 	 
	 

	 	 	 	 	 
	 	FLEXTRONICS INTERNATIONAL LTD., acting

through its Hong Kong branch

 	 
	 	By:  	/s/ M. Marimuthu
 	 
	 	 	Name:  	Manny Marimuthu 	 
	 	 	Title:  	Authorized Signatoryexv10w4

 

Exhibit 10.4

AMENDMENT NO. 1

TO

MASTER REPAIR SERVICES AGREEMENT

BY AND BETWEEN

NORTEL NETWORKS LIMITED

AND

FLEXTRONICS TELECOM SYSTEMS LTD.

This Amendment is effective as of the 8th day of February 2005 by and between Nortel Networks
Limited, a Canadian corporation with a place of business at 8200 Dixie Road, Suite 100, Brampton,
Ontario (“Nortel Networks”) and Flextronics Telecom Systems Ltd., a company organized under the
laws of Mauritius, and having its registered office located at Suite 802 St James Court, St Denis
Street, Port Louis, Mauritius (“Flextronics”).

WHEREAS, Nortel Networks and Flextronics previously entered into a Master Repair Services
Agreement, executed June 29, 2004 (“Execution Date”);

WHEREAS, the Parties agreed in a Phased Closing Side Letter, dated as of June 29, 2004, that the
Effective Date of the Master Repair Services Agreement (“Agreement”) shall be the date that the
first Virtual System House Agreement is executed;

WHEREAS, the first Virtual System House Agreement has been executed as of February 8, 2005; and

WHEREAS, the Parties agreed on the Execution Date that certain information and schedules to the
Agreement would be documented as of the Effective Date;

NOW THEREFORE, intending to be legally bound, the Parties hereby agree to amend the Agreement as
follows:

	A.	 	The “Effective Date” of the Master Repair Services Agreement is February 8, 2005.
	 
	B.	 	The uplift factor described in Section 8.7 of the Agreement is one and thirty-six hundredths
percent (1.36%) as of the Effective Date.
	 
	C.	 	The following sentence is added to the end of the first paragraph of Section 12.2 as follows:
	 
	 	 	“Notwithstanding the foregoing, should the level of Products requiring repair during the
Repair Warranty Period for reasons within Flextronics’ control exceed a threshold to be
mutually agreed to by the Parties within thirty (30) days of the Effective Date, Flextronics
shall repair such Products at no charge.”
	 
	D.	 	Data has been established and agreed to by the Parties for Table 6.1 of Exhibit 6 “Products”.
This information has been stored on CD-ROM and copied to both Parties as of the Effective
Date.

Except as provided above, the Agreement remains unmodified.

 

 

This Amendment Number 1 to the Master Repair Services Agreement is hereby executed by the duly
authorized representatives of each party.

	 	 	 
	NORTEL NETWORKS LIMITED

	 	FLEXTRONICS TELECOM SYSTEMS LTD.

	 	 	 	 	 	 	 
	By:

	 	   /s/ Peter Murphy
	 	By:
	 	   /s/ M. Marimuthu
	

	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	Print Name:

	 	   Peter Murphy
	 	Print Name:
	 	   Manny Marimuthu
	

	 	 
	 	 	 	 

	 	 	 	 	 	 	 
	Title:

	 	   VP Global Supply Chain Operations
	 	Title:
	 	   Authorized Signatory

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