Document:

Intercreditor and Subordination Agreement

 Exhibit 10.5 
  
 INTERCREDITOR AND SUBORDINATION AGREEMENT 
  
 THIS AGREEMENT is dated as of the 13th day of August, 2003, by and among: AIRNET COMMUNICATIONS CORPORATION, a Delaware corporation (the “Borrower”), FORCE COMMUNICATIONS CORPORATION, a Delaware corporation
(“Force”), SANMINA CORPORATION, a Delaware corporation (“Sanmina”), and BROOKTROUT, INC., Massachusetts corporation (“Brooktrout” and together with Force and Sanmina, collectively and
individually, the “Subordinated Lender”); and SCP PRIVATE EQUITY PARTNERS II, LP, a Delaware limited partnership (“SCP II”) and TECORE, INC., a Texas corporation (“Tecore” and together
with SCP II, collectively and individually, the “Lenders”). 
  
 WITNESSETH THAT: 
  
 In
order to induce the Lenders to make financial accommodations to the Borrower, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Borrower and the Subordinated Lender hereby agree with the
Lenders that, so long as any Senior Indebtedness (as hereinafter defined) is outstanding or committed to be advanced, each such party will comply with such of the following provisions as are applicable to it: 
  
 1. Certain Definitions. 
  
 1.1 Senior Indebtedness. The term “Senior
Indebtedness” shall mean: 
  
 (a) any
and all loans, advances, extensions of credit to, and all other indebtedness, obligations and liabilities, whether now existing or hereafter arising, direct or contingent, of the Borrower now or hereafter owing to the Lenders outstanding from time
to time, whether pursuant to: 
  
 (i) that
certain Securities Purchase Agreement dated as of June 5, 2003, by and between the Borrower and the Lenders, as the same may be amended, restated, supplemented, renewed, replaced or extended from time to time (the “Purchase
Agreement”); 
  
 (ii) those certain
Convertible Promissory Notes dated August 13, 2003, as the same may be amended, restated, supplemented, renewed, replaced or extended from time to time (the “Notes”), issued by the Borrower to the Lenders from time to time in the
original aggregate principal amount of up to $16,000,000.00, or 
  
 (iii) otherwise, including, without limitation, any and all indebtedness to the Lenders in respect of any and all future loans or advances or extensions of credit made to the Borrower by the Lenders, or any of them,
prior to, 

 
during or following any proceeding in respect of any Reorganization (as defined in Section 3.2 hereof); and 
  
 (b) all interest thereon and all fees, expenses and other
amounts (including costs of collection and reasonable attorneys’ fees) at any time owing to the Lenders, whether arising in connection with the Purchase Agreement, the Notes or such other indebtedness (regardless of the extent to which the
Purchase Agreement, the Notes or such other indebtedness is enforceable against the Borrower and regardless of the extent to which such amounts are allowed as claims against the Borrower in any Reorganization, and including any interest thereon
accruing after the commencement of any Reorganization and any other interest that would have accrued thereon but for the commencement of such Reorganization). 
  

All Senior Indebtedness shall be entitled to the benefits of this Agreement without notice thereof being given to the Subordinated Lender. 
  
 1.2 Subordinated Indebtedness. The term “Subordinated
Indebtedness” shall mean all existing and hereafter arising indebtedness, obligations and liabilities of the Borrower, to the Subordinated Lender, whether direct or contingent, and all claims, rights, causes of action, judgments and decrees in
respect of the foregoing, including, without limitation: 
  
 (i) all indebtedness and obligations under that certain (a) Settlement Agreement dated October 29, 2001 between Borrower, as debtor, and Force, as creditor (the “Force Settlement Agreement”); (b)
Settlement Agreement dated November 7, 2001 between Borrower, as debtor, and Sanmina, as creditor (the “Sanmina Settlement Agreement”), (c) Settlement Agreement dated November 14, 2001 between Borrower, as debtor, and Brooktrout, as
creditor (the “Brooktrout Settlement Agreement”) and together with the Force Settlement Agreement and the Sanmina Settlement Agreement, the “Settlement Agreements”), which Settlement Agreements evidence obligations
of Borrower to Subordinated Lender in an amount not to exceed in the aggregate the sum of $4,500,000 (the “Subordinated Settlement Agreements”); and 
  
 (ii) the obligations of each party (other than the Subordinated Lender) to, under or in respect of any
agreement or instrument securing any of the Borrower’s obligations to the Subordinated Lender under the Subordinated Settlement Agreements (the “Subordinated Security Documents”) (the Subordinated Settlement Agreement and the
Subordinated Security Documents and any other agreement evidencing or relating to Subordinated Indebtedness being hereinafter collectively referred to as the “Subordinated Agreements”). 
  
 2. Representations and Warranties. The Subordinated Lender and the
Borrower each hereby, severally and not jointly, represents and warrants to the Lenders that: (a) At the date hereof, the total outstanding and unpaid Subordinated Indebtedness owing by the Companies to the Subordinated Lender pursuant to the
Subordinated Agreements is $738,000 plus amounts payable in the future to Sanmina under existing purchase agreements; (b) There is no default in respect of the Subordinated Indebtedness; (c) The Subordinated Lender is the holder of the 

  

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Subordinated Agreements free and clear of all liens, claims and encumbrances, and the Subordinated Lender is not subject to any contractual limitation or
restriction which would impair in any way its ability to execute or perform its obligations under this Agreement; and (d) True, accurate and complete copies of the Subordinated Agreements are attached hereto as Exhibit A. 
  
 3. Terms of Subordination. 
  
 3.1 Permitted Payments of Subordinated Indebtedness. The Borrower
may, from time to time, pay or cause to be paid to the Subordinated Lender, and the Subordinated Lender may accept and retain, regularly scheduled payments of principal and interest as and at the times when due and payable under the Subordinated
Settlement Agreements, as originally executed and delivered. 
  
 3.2 The Subordinated Lender’s Junior Security. The Subordinated Lender hereby confirms that, regardless of the relative times and method of attachment or perfection thereof (or any failure to perfect) or the order of filing of
financing statements, mortgages or other security agreements or documents, or anything in the Subordinated Agreements or this Agreement to the contrary, the security interests and liens granted or to be granted from time to time to secure the Senior
Indebtedness, shall in all respects be first and senior security interests and liens, superior to any security interests and liens granted or to be granted to the Subordinated Lender in assets of, or ownership interests in, the Borrower or any other
person pursuant to the Subordinated Agreements or otherwise, it being the express intention of the parties that, notwithstanding anything in this Agreement to the contrary, all liens and security interests granted to the Lenders from time to time
shall be prior and superior to any liens or security interests granted to the Subordinated Lender. 
  
 4. Limit on Right of Action. (a) The Subordinated Lender agrees for the benefit of the Lenders and all future holders of the Senior Indebtedness
that so long as the Senior Indebtedness remains outstanding or committed to be advanced, the Subordinated Lender will not, directly or indirectly, take any action to exercise any of its remedies in respect of the Subordinated Indebtedness or any
guarantee of payment thereof, to initiate any Reorganization of, or litigation against, the Borrower or any guarantor of the Subordinated Indebtedness, or to foreclose or otherwise realize on any security given by the Borrower or any other person to
secure the Subordinated Indebtedness, so long as Borrower remains in compliance with its obligations to each applicable Subordinated Lender as provided in the applicable Settlement Agreements. 
  
 (b) The foregoing provisions of this Section 4 are solely for the purpose of
defining the relative rights of the Lenders, on the one hand, and the Subordinated Lender, on the other, and shall not otherwise limit or affect any rights which the Subordinated Lender may have against the Borrower under the terms of the
Subordinated Agreements. 
  
 5. Agreement to Hold in Trust.
If the Subordinated Lender shall receive any payment on account of the Subordinated Indebtedness in violation of this Agreement, it shall 

  

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hold such payment in trust for the benefit of the Lenders and, promptly upon discovery or notice of such violation, pay it over to the Lenders for
application in payment of the Senior Indebtedness. 
  
 6.
Further Assurances. The Borrower and the Subordinated Lender covenant to execute and deliver to the Lenders such further instruments and documents and take such further actions as the Lenders may from time to time reasonably request, and the
Borrower and the Lenders agree to execute and deliver to the Subordinated Lender such further instruments and documents and take such further actions as the Subordinated Lender may from time to time reasonably request, in each case for the purpose
of carrying out the provisions and intent of this Agreement. 
  
 7. Successors: Continuing Effect; Etc. This Agreement is being entered into for the benefit of the holders of the Senior Indebtedness and the Subordinated Indebtedness, and their respective successors and assigns. 
  
 8. Entire Agreement; Amendment. This Agreement constitutes the entire
agreement of the parties with respect to the subject matter hereof, and no modification or waiver of any provision of this Agreement shall in any event be effective unless the same shall be in writing signed by the Lenders, and the Subordinated
Lender (unless such amendment or modification shall impose any additional obligations upon the Borrower, in which case such amendment or modification shall also require execution by the Borrower). 
  
 9. Counterparts. This Agreement may be executed by the parties hereto
in several counterparts hereof and by different parties hereto on separate counterparts hereof, each of which shall be an original and all of which counterparts shall together constitute one and the same agreement. Delivery of an executed signature
page of this Agreement by facsimile transmission shall be effective as an in-hand delivery of an original executed counterpart thereof. 
  
 *Signatures on next page* 
  

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 IN WITNESS WHEREOF, each of the undersigned has executed this Intercreditor and Subordination Agreement
or caused this Agreement to be executed by its duly authorized officer, partner or representative, as applicable, as of the day and year first above written. 
  

	 	 	 SUBORDINATED LENDER:

		
	 Force Computers, Inc.
 4305 Cushing Parkway
 Fremont, California 94538
 Attention: General Counsel
 Telecopy No.: 510-25208450
	 	 FORCE COMPUTERS, INC.

	 	 
	 	 By: /s/ Michael Grady

	 	 Name: Michael Grady

	 	 Title: General Counsel & Secretary

		
	 Sanmina Corporation
 2700 North First Street
 San Jose, California 95134
 Attention: V.P. & Corporate Counsel
 Telecopy No.: 408-964-3636
	 	 SANMINA –SCI CORPORATION

	 	 
	 	 By: /s/ Stephen H. Jackman

	 	 Name: Stephen H. Jackman

	 	 Title: VP – Corporate Counsel

		
	 Brooktrout, Inc.
 250 First Avenue, Suite 300
 Needham, MA 02494
 Attention: Corporate Counsel
 Telecopy No.: 781-453-3537
	 	 BROOKTROUT, INC.

	 	 
	 	 By: /s/ Eric R. Giler

	 	 Name: Eric R. Giler

	 	 Title: President

		
	 	 	 BORROWER:

		
	 AirNet Communications Corporation
 3950 Dow Road
 Melbourne, Florida 32934
 Attention: Glenn A. Ehley, President
 and Chief Executive Officer
 Telecopy No.: 321-676-9914
	 	 AIRNET COMMUNICATIONS CORPORATION

	 	  
 By: /s/ Glenn
Ehley

	 	 Name: Glenn Ehley

	 	 Title: President & CEO

		
	 SCP Private Equity Partners II, LP
 300 Building
 435 Devon Park Drive
 Wayne, Pennsylvania 19087
 Attention: James W. Brown
 Telecopy No. 610-975-9546
	 	 LENDERS:

	 	 
	 	 SCP PRIVATE EQUITY PARTNERS II, LP

	 	 
	 	 By: /s/ James W. Brown

	 	 Name: James W. Brown

	 	 Title: a Manager

		
	 Tecore, Inc.
 7165 Columbia Gateway Drive
 Columbia, Maryland 21406
 Attention: Jay Salkini, President
 Telecopy No.: 410-872-6010
	 	 TECORE, INC.

	 	 
	 	 By: /s/ Jay Salkini

	 	 Name: Jay Salkini

	 	 Title: President & CEOAmended and Restated Airnet Bonus Program

 Exhibit 10.6 
  
 AMENDED AND RESTATED 
 AIRNET BONUS PROGRAM 
 DATED AND EFFECTIVE AUGUST 13, 2003 
  
 The Amended and Restated AirNet Bonus Program (the “BONUS PROGRAM”) shall consist
of an Acquisition Bonus Program for Employees and a Management Bonus Program, each described below. This BONUS PROGRAM replaces the Amended and Restated AirNet Bonus Program dated and effective August 13, 2002. 
  
 I. BONUS PROGRAM FOR EMPLOYEES TIED TO SALE OF CONVERTIBLE NOTES OTHER THAN IN CONNECTION
WITH THE SALE OF THE COMPANY. 
  
 AirNet Communications Corporation has issued
secured convertible promissory notes in the aggregate amount of $16,000,000 (“Convertible Notes”) to TECORE, Inc. (“Tecore”) and to SCP Private Equity Partners II, LLP (“SCP”) (SCP and Tecore, and any of their
affiliates who acquire an interest in the respective Convertible Notes each referred to as a “Noteholder” and together referred to as “Noteholders”). The employee share under this Bonus Program tied to the sale of Convertible
Notes (“CNBP”) shall be ten percent (10%) (“Allocation Amount”) calculated as a percentage of the aggregate proceeds in excess of the principal balance and related accrued and unpaid interest then outstanding under the
Convertible Note (or portion of a Convertible Note sold) and paid to any Noteholder in connection with the sale by such Noteholder to any party of all or any portion of the Convertible Notes, other than in connection with a Sale of the Company (as
defined below). By way of illustration: (a) if the principal balance under a Convertible Note is $9,000,000 and the amount of accrued and unpaid interest is $1,000,000 and a Noteholders sells 100% of the Convertible Note for $20,000,000, the Sale of
Note Proceeds (defined below) available for distribution to the Noteholder in connection with their sale of all of the Convertible Note would be $10,000,000, and $1,000,000 would be allocated to the CNBP; and (b) if the principal balance then
outstanding under a Convertible Note is $9,000,000 and the amount of accrued and unpaid interest is $1,000,000 and a Noteholder sells one half of the Convertible Note for $7,000,000, the Sale of Note Proceeds available for distribution to the
Noteholder would be $2,000,000 (the amount in excess of one half of the principal balance or $4,500,000 plus one half of the related accrued and unpaid interest, or the amount in excess of $5,000,000) and the Allocation Amount to be allocated to the
CNBP would be 10% of $2,000,000 or $200,000. 
  
 The obligation of the Noteholders
to fund the CNBP is contained in the Tag Along Allocation Agreement dated as of August 13, 2003 by and among the Company and the Noteholders (the “Tag Along Allocation Agreement”). If either or both of the Noteholders receive consideration
other than cash for the sale of the Convertible Notes other than in connection with the Sale of the Company then the CNBP may be funded in-kind in the same proportion the Noteholders receive in-kind consideration. Whether in cash or in-kind the
Company shall withhold payroll taxes at the time of the distribution of the Allocation Amount available for distribution under this CNBP in the minimum amount required by law (unless an Eligible Employee requests additional withholding) in
compliance with all applicable Internal Revenue Service (“IRS”) and other regulations. If the distribution is other than in cash then the Company shall withhold stock or property equal to the withholding amount at the transaction value in
compliance with IRS regulations or other regulations. The 

 Company shall remit payment to the IRS and applicable taxing authorities in accordance with applicable IRS and other
regulations. 
  
 II. MANAGEMENT AND EMPLOYEE BONUS PROGRAM IN CONNECTION WITH THE
SALE OF THE COMPANY. 
  
 In the event of the Sale of the Company (as defined
below), ten percent (10%) of the Net Proceeds to Securityholders (as defined below) will be allocated by the Company to the Management and Employee Bonus Program (“MBP”). 
  
 If the Securityholders of the Company receive consideration other than cash in connection with the Sale of the Company then the MBP may be
funded in-kind in the same proportion the Securityholders of the Company receive in-kind consideration in connection with the Sale of the Company. By way of illustration, if the Acquisition Price is $31,000,000 and the Net Proceeds to
Securityholders is $29,000,000, then $2,900,000 would be allocated to the MBP. 
  
 The obligation of the Noteholders to fund the MBP is contained in the Tag Along Allocation Agreement. This obligation shall be reduced to the extent the amounts payable to Eligible Employees is reduced due to such Employees’
In-the-money Options as described in Paragraph 3 below. Whether in cash or in-kind the Company shall withhold payroll taxes at the time of the distribution of the Net Proceeds to Securityholders available for distribution in the minimum amount
required by law (unless an Eligible Employee requests additional withholding) in compliance with all applicable IRS and other regulations. If the distribution is other than in cash then the Company shall withhold stock or property equal to the
withholding amount at the transaction value in compliance with IRS regulations or other regulations. The Company shall remit payment to the IRS and applicable taxing authorities in accordance with applicable IRS and other regulations. 
  
 III. DEFINITIONS. 
  
 “SALE OF NOTE PROCEEDS” shall mean the proceeds paid to Noteholders for the sale of all or any portion of the Convertible Notes by
the Noteholders, other than in connection with the Sale of the Company, in excess of the amount of the then outstanding principal balance and related accrued unpaid interest payable under the Convertible Notes sold or such portion of the Convertible
Notes so sold, if only a portion is sold. 
  
 “SECURITIES” of the
Company shall mean shares of common stock, preferred stock, or securities convertible into shares of common stock or preferred stock, including options, warrants, the Convertible Notes, and any other convertible notes. 
  
 “SECURITYHOLDERS” shall mean holders of the Company’s then outstanding
Securities. 
  
 “NET PROCEEDS TO SECURITYHOLDERS” shall mean the net
sales proceeds available for distribution to the Company’s Securityholders in connection with the Sale of the Company, after deducting from the Acquisition Price transaction expenses relating directly to the Sale of the Company including
attorneys fees, accounting fees, and underwriting or brokerage commissions; provided that if a Noteholder or the Noteholders sell all or any portion of their Convertible Notes in connection with a Sale of the Company, (or if a Noteholder or the
Noteholders receive sales proceeds in satisfaction of the indebtedness represented by their Convertible 
  

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 Notes) only the proceeds payable to such Noteholders in excess of the amount of the then outstanding principal balance
and related accrued unpaid interest payable under the Convertible Notes sold or such portion of the Convertible Notes so sold shall be included in NET PROCEEDS TO SECURITYHOLDERS. 
  
 “SALE OF THE COMPANY” shall mean (i) a sale or exchange of all or substantially all of the assets of the Company (including a
sale, disposition, or exchange in a liquidation but excluding any such sale or exchange to a direct or indirect subsidiary (“Successor Subsidiary”) of the Company) by the Company or by a Successor Subsidiary or (ii) a sale or exchange of
all or substantially all of the outstanding capital stock of the Company or Successor Subsidiary resulting in a Change of Control of the Company or Successor Subsidiary, or (iii) a merger, consolidation or other business combination (excluding any
issuance of previously un-issued voting securities from the Company in connection with an investment in the Companyby a Noteholder or any third party or exercise of conversion rights by a Noteholder) resulting in a Change of Control of the Company
or Successor Subsidiary, as a result of which the Company or the Successor Subsidiary is not the continuing or surviving corporation. 
  
 “CHANGE OF CONTROL” means the acquisition by any individual, entity or group of 50% or more of the outstanding voting securities of the Company or 50% or more
of the combined voting power of then outstanding voting securities of the Company entitled to vote generally in the election of directors. 
  
 “ACQUISITION PRICE” means the aggregate sum of money and/or fair market value of property (valued as of the date of closing) to be paid by an acquiring party to
the Company or to its Securityholders in connection with a Sale of the Company. For purposes of the Bonus Program, if the acquiring party is then a current Securityholder or an affiliate of a current Securityholder (“CURRENT SECURITYHOLDER
ACQUIRING PARTY”) which is (a) acquiring the assets of the Company in a transaction in which the Current Securityholder Acquiring Party receives no distribution of money or property with respect to its Securities or a distribution which is less
than the per-share amount received by other Securities holding the same class or series of Securities, on an as-converted basis, (b) engaging in a merger, consolidation or other business combination with the Company in which the Company is not the
continuing or surviving corporation and in which the Current Securityholder Acquiring Party receives no money or property in exchange for its Securities or an amount of money or property which is less than the per-share amount received by other
Securityholders holding the same class or series of Securities, on an as-converted basis, or (c) acquiring Company Securities from Securityholders but not from itself or the current Securityholder affiliated with the Current Securityholder Acquiring
Party, the amount of the Acquisition Price shall include the value of the shares of Company common stock held by such Current Securityholder Acquiring Party or underlying any Convertible Notes or other convertible Securities held by such Current
Securityholder Acquiring Party based on the same value per share that will be paid or distributed to Securityholders owning the same class or series of shares, Convertible Notes or other convertible securities. 
  
 Should a Current Securityholder Acquiring Party be the purchaser in a Sale of the Company and
that party does not receive, or waives its right to receive, all or any portion of the purchase price otherwise payable to Securityholders, then and only in that event, the Net Sales Proceeds to Securityholders shall include the value of the Company
Securities held by such Current Securityholder Acquiring Party based on the same value per share that will be paid or distributed to Securityholders owning the same class or series of shares, Convertible Notes or other convertible securities (the
“Value Adjustment”). The payment of bonuses applicable to the Value Adjustment is an obligation of the Company and shall not reduce the amount of Net Proceeds to Securityholders otherwise payable to Securityholders other than the Eligible
Employees hereunder. 
  

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 THE CNBP AND THE MBP SHALL BE ADMINISTERED AS FOLLOWS: 
  
 1. Only employees (the “ELIGIBLE EMPLOYEES”) designated by the Company’s
Chief Executive Officer, with the review and approval of the Compensation Committee and the Company’s Board of Directors (the “BOARD”) shall be entitled to participate in the CNBP and the MBP. 
  
 2. Anything contained herein to the contrary notwithstanding, the total amount allocable to
the Eligible Employees from the CNBP shall not exceed ten percent (10%) of the Sale of Note Proceeds and the total amount allocable to the Eligible Employees from the MBP shall not exceed ten percent (10%) of the Net Proceeds to Securityholders.

  
 3. All amounts payable from the MBP to an Eligible Employee shall be reduced
by an amount equal to the value of the difference between the exercise price of each Company common stock option (“IN-THE-MONEY OPTIONS”) held by such Eligible Employee that is “in-the-money” and the price of an underlying share
of the Company’s common stock (the “PER-SHARE PRICE”); provided the shares underlying the In-the-Money Options are purchased by the acquiring party in connection with the Sale of the Company. Such Per-Share Price shall be calculated
by dividing the Net Proceeds to Securityholders by the number of shares of the Company’s common stock deemed to be outstanding just prior to the Sale of the Company, including shares underlying Convertible Notes, if any, and all In-The-Money
Options. Options exercised from and after the effective date of this Amended and Restated Bonus Program and preceding a Sale of the Company shall be included in the calculation described in this Section 3. 
  
 4. The allocation of the Sale of Note Proceeds under the CNBP and the Net Proceeds to
Securityholders under the MBP among the Eligible Employees shall be at the discretion the Company’s Chief Executive Officer, with the review and approval of the Compensation Committee and the Board of Directors. Any consideration received by an
Eligible Employee pursuant to the Bonus Program shall be in addition to, and shall not reduce or replace, the amount of consideration such Eligible Employee may otherwise be entitled to as a stockholder of the Company. 
  
 5. All payments due from the Company to Plan Participants under this Bonus Program, will be
made within five (5) business days from the Company’s receipt of the Allocation Amount with respect to the CNBP and within five (5) business days from the closing of a Sale of the Company with respect to the MBP. 
  

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