Document:

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

This Purchase and License Agreement for FWA Equipment (the "Agreement")
dated as of December 28, 2004 (the "Effective Date") is entered by and among
Airspan Communications Limited ("Airspan"), and Axtel, S.A. de C.V.
("Axtel" and, together with Airspan, the "Parties"), is effective from the
Effective Date and shall continue in effect thereafter during the Term.
References to "days" shall mean calendar days, unless otherwise specified.

WHEREAS, Axtel and Nortel Networks Limited ("NN Limited") and Nortel Networks
de Mexico, S.A. de C.V. ("NN Mexico" and collectively with NN Limited,
"Nortel Networks") entered into a Purchase and License Agreement for FWA
Equipment dated March 20, 2003, which was subsequently amended by Amendment
No. 1 dated September 15, 2003 and by the Change Order dated December 5, 2003
(the "Original FWA PLA");

WHEREAS, Nortel Networks and Axtel entered into a Technical Assistance
Support Services Agreement for FWA Equipment dated March 20, 2003 (the
"Original FWA TASS");

WHEREAS, Nortel Networks, Airspan and Axtel entered into an Assignment and
Assumption Agreement dated December 23, 2003, by virtue of which Nortel Networks
assigned all of its rights and obligations under the Original FWA PLA and the
Original FWA TASS to Airspan (the "Assignment Agreement");

WHEREAS, the Parties entered into an Amendment Agreement No. 2, dated as
of April 20, 2004 (the "Amendment No. 2"), in order to confirm their mutual
intention to amend and restate the Original FWA PLA and the Original FWA TASS,
pursuant the terms set forth in such Amendment;

WHEREAS, Axtel issued certain purchase orders for the supply of equipment
Products and related services pursuant the terms and conditions set forth
in the Amendment No. 2, such Products and Services ordered under such
purchase orders shall be subject to the terms and conditions set forth in this
Agreement as per the terms set forth in Section 19 below;

WHEREAS, it is the intention of the Parties to amend and restate the Original
FWA PLA as set forth herein;

NOW THEREFORE in consideration for the mutual premises contained herein, the
Parties hereby covenant and agree as follows:

1.        Definitions, Preamble, Purpose And Schedules

1.1       Unless otherwise expressly indicated, the following definitions shall
          apply to this Agreement and its Annexes:

          "Concession" means any concession, license, permit or the like
          (including any additions or amendments thereto) granted and issued by
          the governmental authorities of Mexico as of the Effective Date or
          during the Term in favor of Axtel that are legally required under
          applicable laws for operation of the Products sold hereunder and
          Axtel's networks in Mexico.

          "Deliver" and "Delivery" shall have the meaning assigned to such term
          in the Annex "E" of this Agreement.

          "Excess Products" shall mean with respect to FWA RSS Products ordered
          by Axtel in any given month, the FWA RSS Products that exceed the
          greater of: (i) 3,000 FWA RSS Units or (ii) 50% more of the amount
          of FWA RSS Units ordered by Axtel for delivery in the prior month
          (for example if Axtel orders 3,000 RSS units for delivery in July and
          12,000 RSS units for delivery in August, the Excess Products for
          August would be 7,500 RSS units (amount comes from 3,000 of the prior
          month plus the 50% of such amount (1,500). The result is 4,500 so the
          Excess Product are 7,500 in order to complete the 12,000 units).

          "Force Majeure Event" means the occurrence of fire, casualty,
          explosion, lightning, accident, war (declared or undeclared), armed
          conflict, civil disturbance, riot, Act of God, the enactment,

<PAGE>

          issuance, or application of any law, local by-law, regulation, or
          executive, administrative, or judicial order, acts (including delay or
          failure to act) of any governmental authority, or any other cause or
          causes (whether of the foregoing, nature or not), or any other similar
          or different occurrence, which cause or occurrence is beyond the
          reasonable control of the affected party and whether or not
          foreseeable by such party

          "FWA Business" means, among other things, the know-how and licenses
          that would allow a third party to manufacture and support base station
          equipment, Axtel premises equipment, remote element manager, system
          software and installation toolsets, that combined provide a fixed
          wireless access solution operating in the 3.5 GHz spectrum using TDMA
          technology.

          "Hardware" means Airspan machine, equipment or component, but not
          including the software.

          "Local Airspan Affiliate" means any person or entity established prior
          to or during the Term in Mexico, more than fifty percent (50%) of
          whose voting shares or outstanding capital stock is owned or
          controlled (directly or indirectly) by Airspan or an affiliate of
          Airspan.

          "Products" means any Hardware, Software or Third Party Vendor Items
          provided under this Agreement, which are further described in Annex C
          hereto.

          "Services" means the activities, which may be undertaken by Airspan
          pursuant to an Order, including but not limited to, consulting,
          business planning, network planning and analysis.

          "Site" means a location designated by Axtel at which the Products are
          to be installed and the Services are to be performed.

          "Software" means computer programs or firmware which is owned or
          licensed by Airspan, its parent or one of its subsidiaries or
          affiliates, and is copyrighted and licensed, not sold. Software
          consists of machine-readable instructions, its components, data,
          audio-visual content (such as images, text, recordings or pictures)
          and related licensed materials including all whole or partial copies.

          "Software Scripts" means the high level overlay of the Radio Element
          Manager (REM) software that is either run on demand or scheduled and
          typically collects, post processes or interprets data for operational,
          installation, commissioning and maintenance purposes. The Software
          Scripts do not include REM daemons or REM Graphical User Interface
          screens (GUI).

          "Specifications" means, with respect to Products and/or Services, the
          technical specifications set forth in Annex D hereto, which describe
          or explain the standard functional capabilities and/or requirements
          for such Products and/or Services.

          "Taxes" means all federal, state, provincial, local, foreign, gross
          income, gross receipts, sales, use, value added, stamp, levies,
          customs duties, franchise, withholding, excise, real or personal
          property taxes, registration charges and all other similar taxes.

          "Term" means three (3) years and three (3) months, commencing on the
          Effective Date, provided that the Term may be extended for subsequent
          one (1) year periods, subject to the Parties agreeing on mutually
          acceptable commercially reasonable terms and conditions, where
          "commercially reasonable" shall mean terms and conditions which would
          be expected to be found in a comparable contractual arrangement
          between arms' length parties, acting without other economic constraint
          or influence, of similar size and financial situation for products
          and/or services similar or comparable to those under this Agreement,
          including, without limitation, price and gross margins, and delivery
          lead times, capital investment required and credit quality of the
          buyer; and provided, further, that, solely for the period prior to any
          sale of

                                      -2-
<PAGE>

          the FWA Business by Airspan to an unrelated third party, (i) twelve
          (12) months prior to the end of the Term as then in effect, the
          Parties shall enter into negotiations to determine such mutually
          acceptable commercially reasonable terms and conditions, (ii) if
          agreement on such terms and conditions is not reached by the date that
          is nine (9) months prior to the end of such Term, such determination
          shall be submitted to arbitration pursuant to the Rules of
          Conciliation and Arbitration of the International Chamber of Commerce
          then in force, such proceedings to take place in the English language
          in the City of Miami, Florida, before a panel of three (3) arbitrators
          appointed in accordance with the aforementioned rules, (iii) if such
          arbitration has not resulted in a determination on or before the end
          of the Term as then in effect, the terms and conditions of this
          Agreement as in effect during such Term shall be deemed to continue
          in effect until such a determination is reached, at which time such
          determination shall be applied retroactively to the end of such Term,
          (iv) if the terms and conditions determined by such arbitration are
          acceptable to Axtel but are not accepted by Airspan, then the
          arbitrators shall determine the price at which they believe the FWA
          business would be sold in an arms length transaction by parties acting
          without other economic constraint or influence, (v) Axtel shall have
          the right to purchase the FWA Business at such price, and (vi) if the
          Axtel elects not to purchase the FWA Business at such price, then
          Airspan shall have no continuing obligation to Axtel beyond the terms
          of this Agreement as then in effect.

          "Third Party Vendor Items" includes "Third Party Hardware" and "Third
          Party Software" and means any non-Airspan hardware and/or software
          supplied to Axtel under this Agreement.

1.2       Certain additional terms and expressions are defined in particular
          Sections of this Agreement.

1.3       Words (including words defined herein) indicating the singular only
          shall also include the plural and vice-versa where the context
          requires.

1.4       Words indicating the masculine only shall also include the feminine
          and vice-versa where the context requires.

1.5       The preamble shall form an integral part of and shall be incorporated
          in this Agreement as if herein recited at length.

1.6       Airspan and Axtel agree on all of the terms and conditions regarding
          the supply of the Products and Services as set forth in this
          Agreement.

1.7       The following Annexes to this Agreement are expressly herein
          incorporated by reference and shall form an integral part of this
          Agreement:

          Annex A  -   Intentionally Left in Blank
          Annex B  -   Change Order Procedures and Form of Change Order
          Annex C  -   Description of Products
          Annex D  -   Product Specifications
          Annex E  -   FWA Order Procedure
          Annex F  -   FWA Prices
          Annex G  -   Warranty Terms and Warranty Services
          Annex H  -   Acceptance Procedure New FWA RSS F6 Unit
          Annex I  -   Intentionally Left in Blank
          Annex J  -   Products Delivery Times
          Annex K  -   Minimum Purchase Commitment

1.8       In the event of any discrepancy or inconsistency between this
          Agreement and any of its Annexes, the terms and conditions of this
          Agreement shall prevail to the extent of any such discrepancy or
          inconsistency.

                                      -3-
<PAGE>

1.9       Any amendment, modification or addendum to this Agreement shall be
          made making specific reference to the provision(s) to be amended,
          modified or added and shall have to be made in writing signed by all
          Parties hereto. All other provisions not specifically referred to in
          such amendment, modification or addendum shall remain unchanged and in
          full forced and effect.

2.        Orders and Order Procedure

2.1       Axtel may acquire Products or Services by: (i) issuing a written
          purchase order, signed by an authorized representative, or (ii) if
          Axtel is enrolled in any then current Airspan electronic commerce
          program, by submitting electronic orders (collectively, "Orders").

2.2       All Orders shall reference this Agreement and shall comply with the
          Order Procedure attached as Annex E hereto. Orders are totally binding
          and non-cancelable, unless is otherwise set forth in this Agreement.

2.3.1     All Orders will be governed by and cannot alter the terms and
          conditions of this Agreement. In order to be valid, all Orders must be
          accepted by Airspan through a written or electronic communication.
          Airspan shall accept such Order within the next ten (10) business days
          after delivery thereof, if such Order is in compliance with this
          Agreement (prices and descriptions) and no additional terms and
          conditions have been imposed and provided further Airspan has not
          exercised its rights of termination under section 16 of this
          Agreement.

2.3.2     Axtel will be required to issue Orders to Airspan for delivery of
          Products in accordance with Annex J no sooner than 20 weeks prior to
          the delivery date of the Products ordered, Airspan may, however, in
          its sole discretion, agree to accept an Order in accordance with this
          Agreement if it is issued by Axtel later than such date.

2.3.3     Furthermore Airspan will have the right, at its option, either to
          cancel an Order or to postpone delivery of Products until the first
          payment is received, without any responsibility to the Parties, only
          if Airspan has not received from Axtel the first payment mentioned in
          Section 5.3 below, at least sixteen (16) weeks prior to the scheduled
          delivery date of the Products ordered under such Order and if Airspan
          elects to postpone the delivery, the 16-week interval may be
          recalculated by Airspan from the date it receives the downpayment.

2.3.4     For the avoidance of doubt, the Parties agree that Airspan shall not
          be obligated to start performing under any Order until Axtel complies
          with the provisions of this Section 2.3. In the event Airspan does not
          accept an Order in accordance with this Section 2.3, it shall promptly
          return to Axtel any payments made by Axtel with respect to such order,
          if any.

2.4       The implementation schedule, responsibility matrix and any other items
          which may be necessary for the performance of Airspan' obligations
          hereunder shall be mutually agreed upon between the Parties and
          included as exhibits to the Order. Such exhibits shall be deemed
          incorporated into this Agreement by this reference.

2.5       Intentionally Left in Blank.

2.6       The prices set forth in Annex F and reflected in each Order are based
          on anticipated delivery and performance schedules and specifications
          incorporated in such Order.

2.7       Any changes to this Agreement or an Order initiated by Axtel or
          Airspan after the Effective Date resulting in adjustments to process,
          job schedule, contract price or other requirements thereof may be
          cause for adjustment by Airspan to the prices and to the relevant
          delivery and performance schedules set forth therein. Any such
          adjustment shall be detailed in a change order, a form of which is
          attached hereto as Annex B ("Change Order"). If the Change Order
          affects any Products for which Airspan has commenced manufacturing or
          has shipped or any

                                      -4-
<PAGE>

          Services for which Airspan has commenced performance, the adjustment
          of the price shall include reasonable, documented charges incurred by
          Airspan related thereto. No such changes shall be performed until a
          Change Order has been executed by authorized representatives of the
          Parties.

2.7.1     A Change Order may be used to increase the amount of Products and/or
          Services ordered or to change the delivery schedule of the Products
          ordered thereunder, taking in consideration the following:

               (i)  The delivery of [ * ] of the relevant Products ordered shall
                    not be rescheduled for more than [ * ].

               (ii) The delivery of the [ * ] of the relevant Products ordered
                    shall not be rescheduled for more than [ * ].

               (iii) The delivery of the remaining [ * ] of the relevant
                     Products ordered shall not be rescheduled for more than
                     [ * ].

2.8       By enrolling in any Airspan' electronic commerce program, Axtel agrees
          to comply with the terms of such program. Axtel agrees that all
          electronic Orders issued are equivalent to a written Order, are
          governed by the terms and conditions of this Agreement and that in the
          event of any conflict between this Agreement and the information
          contained in Axtel's or Airspan' electronic commerce website, this
          Agreement governs. Axtel is responsible for the use and protection of
          all electronic commerce passcodes provided by Airspan and agrees that
          all Orders submitted using such passcodes are valid and binding Orders
          authorized by Axtel. Airspan shall have no liability to Axtel due to
          Axtel's failure to access Axtel's or Airspan's electronic commerce
          website or errors or failures relating to its operation.

3.        Delivery Terms

3.1       Airspan shall Deliver Products, for which an Order has been accepted
          by Airspan in accordance with section 2, in accordance with the timing
          set forth in Annex "J" of this Agreement. The delivery times shall
          commence after Order acceptance as specified in Section 2.3 of this
          Agreement, provided that Axtel shall establish in the Order the
          applicable delivery time for the Products ordered thereunder in
          compliance with the times set forth in Annex "J" of this Agreement, on
          the understanding that the parties may by mutual agreement establish
          in such Orders longer delivery times.

3.1.1     Airspan shall Deliver the Products at the applicable Airspan'
          factory, except for RSS equipment, which shall be delivered pursuant
          the terms set forth herein below.

3.2       RSS Delivery Location: RSS shall be delivered at the Airspan Logistics
          Operating Center for North America (currently Laredo, Texas), subject
          to section 3.3 below.

3.3       Virtual Export Import Process. The Parties will make commercially
          reasonable efforts to perform a Virtual Export-Import Process whereby
          the RSS equipment will be delivered at the current RSS manufacturing
          site (Solectron Guadalajara) at the same prices set forth in this
          Agreement.

3.4       In the event of delay, exclusively attributable to Airspan, in
          delivering the Products (except for the Excess Products) as per the
          applicable delivery times set forth in Annex "J" of this Agreement and
          in lieu of any other damages arising from such delay, Airspan shall
          pay Axtel, one percent (1.0%) of the price of the Products not
          delivered of the relevant Order per each day of delay, up to a maximum
          of fourteen percent (14%) of the price of such Products not delivered.
          The Parties mutually acknowledge that the aforesaid damage amounts are
          reasonable in light of the anticipated actual harm which might be
          caused by any delay or failure

                                      -5-
<PAGE>

          in Delivery of the Products and the difficulty of ascertaining
          damages. Instructions given by Axtel to Airspan to correct faulty work
          or to repair or replace Products shall not constitute a waiver of the
          damages set forth herein.

3.4.1     In the event of delay of more than four (4) weeks, exclusively
          attributable to Airspan, in delivering the Excess Products as per the
          applicable delivery times set forth in Annex "J" of this Agreement and
          in lieu of any other damages arising from such delay, Airspan shall
          pay Axtel, one percent (1.0%) of the price of the any Excess Products
          not delivered of the relevant Order per each day of delay (after such
          four (4) weeks period), up to a maximum of fourteen percent (14%) of
          the price of such Excess Products not delivered. The Parties mutually
          acknowledge that the aforesaid damage amounts are reasonable in light
          of the anticipated actual harm which might be caused by any delay or
          failure in Delivery of the Products and the difficulty of ascertaining
          damages. Instructions given by Axtel to Airspan to correct faulty work
          or to repair or replace Products shall not constitute a waiver of the
          damages set forth herein.

3.5       If any RBS FWA Product scheduled for delivery in year 2004, Airspan no
          delivers it to Axtel in such year 2004, Airspan hereby agrees to
          provide such RBS FWA Product to Axtel free of any charge and will
          reimburse Axtel of any amount paid in advance for such Product.

4.        Licensed Use of Software

4.1       Airspan grants Axtel a nonexclusive and perpetual (subject to Airspan
          termination rights set forth in section 4.5 below) license to use a
          copy of the Software with the Products to the extent of the activation
          or authorized usage level.

4.2       To the extent Software is furnished for use with designated Products
          or Axtel-furnished equipment ("CFE"), Axtel is granted a nonexclusive
          and perpetual (subject to Airspan termination rights set forth in
          section 4.5 below) license to use the Software only on such Products
          or CFE, as applicable.

4.3       Software contains trade secrets and Axtel agrees to treat Software as
          Information (as defined in Section 10). Axtel will ensure that anyone
          who uses the Software does so only in compliance with the terms of
          this Agreement.

4.4       Axtel shall not: (a) use, copy, modify, transfer or distribute the
          Software except as expressly authorized, provided, however, that,
          Axtel is hereby authorized to generate new Software Scripts or modify
          the existing ones; and provided, further, that Airspan shall not be
          obligated to support such modified Software Scripts, nor shall it be
          responsible for any performance issues resulting from such modified
          Software Scripts; (b) reverse assemble, reverse compile, reverse
          engineer or otherwise translate the Software; (c) create derivative
          works or modifications unless expressly authorized; or (d) sublicense,
          rent or lease the Software. Licensors of intellectual property to
          Airspan are beneficiaries of this provision.

4.5         Upon breach of the Software license by Axtel as set forth in this
          Agreement or in the event the designated Product or CFE is no longer
          in use, this license terminates and Axtel will promptly return the
          Software to Airspan or certify its destruction.

4.6         Airspan may audit by remote polling or other reasonable means to
          determine Axtel's Software activation or usage levels.

4.7         With respect to Third Party Software, Axtel agrees to abide by the
          terms provided by Airspan with respect to any such software. Axtel
          further agrees that the terms contained in any Airspan or third party
          "shrink wrap" or "click" licenses shall govern the use of such
          software.

4.8         If Airspan and Axtel agree that Delivery of Software is to be made
          electronically via File Transfer Protocol, then Delivery of such
          Software by Airspan shall be deemed to have taken

                                      -6-
<PAGE>

          place at such time as the Software is loaded onto a network server, as
          designated by Airspan, and Axtel has been provided with appropriate
          instructions and passwords to enable Axtel to begin use of such
          Software. Notwithstanding the foregoing, the Parties shall comply with
          all regulations applicable to importation of Software pursuant to
          applicable law.

4.9       Axtel is allowed to make copies of the Software, as may be reasonably
          necessary for back up, execution or archival purposes only.

5.        Charges, Payment and Taxes

5.1       The contract price for the Products (including Software) and Services
          is set forth in Annex F hereto. Unless otherwise agreed by the Parties
          in an Order, all prices are in U.S. dollars, exclusive of Taxes. All
          prices are applicable solely in Mexico.

5.2       In accordance with the terms of Annex "E", within the next five (05)
          business days after the delivery of the Order in accordance with the
          terms set forth in Section 5.3, Airspan shall deliver to Axtel an
          invoice for one hundred percent (100%) of the purchase price of such
          Order.

5.3       Axtel shall pay Airspan for all Products and Services in accordance
          with the following payment terms, provided that Airspan has not
          breached its representations, warranties, covenants and undertakings
          under this Agreement:

          (i)  For any Product:

               [ * ]  First Payment, sixteen (16) weeks before the Delivery of
                      the Products, or such shorter interval if Airspan has
                      accepted an Order under section 2.3.2 having a shorter
                      interval between acceptance and Delivery;

               [ * ]  Second Payment, upon Delivery of the Product(s).

          (ii) For any Services:

               [ * ]  upon acceptance of the Order by Airspan, and the remainder
                      in equal monthly installments on the last business day of
                      each month during the period in which the services are
                      performed.

5.4       Payment of the second installment mentioned in Section 5.3 (i) above,
          shall be made by Axtel twenty (20) days after Delivery Date of
          Basestations, and ten (10) days for RSS equipment (as defined in Annex
          E of this Agreement) of the Products; provided that Axtel may notify
          Airspan in writing within such 20-day or 10-day period, as the case
          may be, if some or all of the Products delivered are not in compliance
          with the terms of the Order (the "Non-Compliant Products"), in which
          case Airspan shall take, within thirty days of the date of Axtel's
          notice, corrective action to resolve such Non-Compliant Products.
          Axtel shall not be obligated to pay the purchase price of the
          Non-Compliant Products until Airspan corrects such non-compliance,
          provided, however, that prior to such resolution Airspan shall issue a
          revised invoice relating to the portion of Products received by Axtel
          that is in compliance with the terms of the Order. Partial shipments
          shall be allowed under this Agreement pursuant the terms set forth in
          Annex "J" of this Agreement. For the avoidance of doubt, the Parties
          agree that the purchase price of the compliant Products shall be paid
          by Axtel as provided in this Section 5.4.

5.5       The Parties hereby agree that any payments to be made under this
          Agreement shall be made when due by wire transfer (electronic or
          telegraphic) or by any other form of payment, in immediately available
          funds, to Airspan's bank account, as follows:

                                      -7-
<PAGE>

<TABLE>
<S>                        <C>

Bank:                      Lloyds Bank
                           32 Commercial Way,
                           Woking,
                           Surrey GU21 1ER,
                           England
Sort Code:                 [ * ]
Account Name:              Airspan Communications Limited
Account No:                [ * ]
Further Instructions       Reference Axtel
                           P.O. No. _______,
                           Payment of Invoice No. ____________.

</TABLE>

5.6       With respect to Services, amounts are due upon receipt of invoice and
          shall be paid by Axtel within thirty (30) days of the invoice date.

5.7       Axtel shall pay interest on any late payments at the rate of twelve
          (12%) percent per annum.

5.8       Charges for Software may be based on extent of use authorized as
          specified in this Agreement. Axtel agrees to pay the charges
          applicable for any activation or usage beyond the authorized level.

5.9       Axtel is liable and responsible for any Taxes relating to the purchase
          and importation of the Products or Services furnished by Airspan or
          its subcontractors pursuant to this Agreement (whether incurred
          directly or indirectly by Airspan) and shall, at Airspan' direction,
          promptly pay to Airspan or pay directly to the applicable government
          or taxing authority, if requested by Airspan, all such Taxes;
          provided, however, that in no event shall Axtel be liable for Taxes
          computed upon the income or gross revenues of Airspan or its
          subcontractors.

5.10      Axtel shall be responsible for payment of personal property taxes for
          Products and materials from the date of shipment by Airspan. Axtel's
          obligations pursuant to this Section shall survive any termination of
          this Agreement.

5.11      Axtel shall, within thirty (30) days of the tax payment on behalf of
          Airspan, furnish to Airspan all original tax receipts or certified
          copies in Airspan' name showing payment of the Tax and such other
          documentation relating to the tax payment which Airspan may reasonably
          request.

5.12      If Axtel shall claim to be exempt from any Taxes, Axtel shall furnish
          to Airspan a tax exemption certificate from the relevant taxing
          authority in the form required by law or otherwise reasonably
          acceptable to Airspan. If Axtel shall claim any such tax exemption and
          provides Airspan the required tax exemption certificate and Airspan
          does not collect the Taxes in reliance thereupon, Axtel shall hold
          Airspan harmless from and against any and all assessments for such
          Taxes levied on Airspan, including all interest, penalties and late
          charges upon any such Taxes and the cost of professional consulting
          fees incurred by Airspan to settle the applicable tax matter with the
          relevant tax authorities.

5.13      If withholding of any Tax is required in respect of any payment by
          Axtel to Airspan hereunder, Axtel shall: (i) withhold the appropriate
          amount from such payment, (ii) pay such amount to the relevant
          authorities in accordance with applicable law, and (iii) pay Airspan
          an additional amount such that the net amount received by Airspan is
          the amount Airspan would have received in the absence of such
          withholding.

5.14      Axtel shall pay all applicable customs fees, import duties, and
          similar charges directly to the appropriate governmental authorities.
          Each party agrees to ensure that it is in good standing and is
          appropriately registered, including without limitation, with respect
          to Taxes, in any country, state or other jurisdiction where legally
          required.

                                      -8-
<PAGE>

5.15      Airspan reserves the right to import services or subcontractors when
          and where necessary to complete services related to this Agreement. To
          the extent the Local Airspan Affiliate must import services or
          subcontractors in support of this Agreement, Airspan reserves the
          right to have the Local Airspan Affiliate invoice Axtel an additional
          amount such that the cost of the withholding taxes for such imported
          Services are borne by Axtel.

5.16      Axtel consents without qualification to the sale and/or assignment of
          receivables, in whole or in part, including all or any part of any
          associated rights, remedies, and obligations, by Airspan subject to a
          30-day prior written notice, and authorizes the disclosure of this
          Agreement as necessary to facilitate such sale. Any tax impact to
          Axtel resulting from such sale and/or assignment shall be borne by
          Airspan.

5.17      Intentionally Left in Blank.

5.18      Intentionally Left in Blank.

5.19      Airspan reserves the right to reject an Order at Airspan' sole
          discretion, or to withhold shipment of Products or performance of
          Services, or any portion thereof, if: (i) Axtel is in default of its
          payment obligations hereunder, (ii) Axtel is in breach of its
          obligations under this Agreement, or (iii) Axtel falls under any of
          the situations described in Sections 16.1 (i) through (v) hereof, and
          all relevant dates for completion shall be adjusted accordingly.

5.20      Intentionally Left in Blank.

5.21      The Minimum Purchase Commitment is set fort in Section 23 and in Annex
          K.

5.22      Axtel has the right to engage a third party financial institution to
          provide financing for the Products and/or Services supplied by Airspan
          under this Agreement (provided that Axtel is in compliance with the
          financial covenants set forth in the Airspan Finance Agreement), in
          which case such third party financial institution may purchase
          Products and Services as required by Axtel and may make the payments
          as provided under this Agreement; provided, however, that Axtel shall
          continue to be obligated to comply with all its obligations hereunder
          or with respect to the Product and/or Services sold by Airspan to that
          third party.

6.        Warranty

6.1       Airspan warrants that the Products (except for the Software) described
          in Annex "C" will be new, unused when delivered and, subject to the
          provisions of this Section and to the terms and conditions set forth
          in Annex "G" of this Agreement.

6.1.1     Airspan warrants that the Software described in Annex "C", will be
          subject to the provisions of this Section and to the terms and
          conditions set forth in Annex "G" of this Agreement.

6.2       Airspan warrants that the Products will be free from defects in
          materials and workmanship and will function substantially in
          accordance with the applicable technical Specifications during the
          warranty period of twelve (12) months from the respective Delivery
          Date pursuant the terms set forth in Annex "G" of this Agreement.

6.3       Airspan warrants that the Services will be performed in a professional
          and workmanlike manner and will be subject to the terms set forth in
          Annex "G" of this Agreement.

6.4       THESE WARRANTIES AND LIMITATIONS ARE AXTEL'S EXCLUSIVE WARRANTIES AND
          SOLE REMEDIES, AND REPLACE ALL OTHER WARRANTIES OR CONDITIONS, EXPRESS
          OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OR
          CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

                                      -9-
<PAGE>

6.5       Single Product RSS Equipment.

6.5.1     Airspan will develop and manufacture a new single unit of RSS
          equipment (the "New FWA RSS F6 Unit"), and Airspan commits to supply
          the New FWA RSS F6 Unit to Axtel from April 1st, 2005 (the "New
          Product Commercial Launch").

6.5.2     The New FWA RSS F6 Unit shall have at least the same form, function
          and fit of both of the current RSS Equipment (jointly F2 and F5 RSS
          equipment), in accordance with the technical specifications set forth
          in Annex "D" of this Agreement.

6.5.3     The price of the New FWA RSS F6 Unit is set forth in the Annex "F" of
          this Agreement.

6.5.4     Airspan will provide a number of fifteen (15) New FWA RSS F6 Units to
          Axtel by January 30th 2005 in order for Axtel to perform and have
          completed no later than March 15th 2005 a first market application of
          the New FWA RSS F6 Unit before the New Product Commercial Launch (the
          "First Market Application"). The New FWA RSS F6 Unit shall pass
          successfully the First Market Application made by Axtel pursuant the
          acceptance procedure set forth in Annex "H" of this Agreement. If
          Axtel considers it necessary, Axtel will have the right to request
          Airspan to assist Axtel in a verification office of the New FWA RSS F6
          Unit. Airspan will provide a quote for this service under this
          Agreement at reasonable costs and prices.

6.5.5     Airspan shall sell and deliver to Axtel the current F5 RSS Kit
          (excluding the RDA) instead of such New FWA RSS F6 Unit, at the prices
          of the New FWA RSS F6 Unit set forth in Annex "F" of this Agreement,
          if any of the following events occur:

               (a)  If the New FWA RSS F6 Unit is not available for Delivery
                    after the New Product Commercial Launch in accordance with
                    the Specification set forth in this Agreement; or

               (b)  If the New FWA RSS F6 Unit does not satisfactorily pass the
                    First Market Application performed by Axtel in accordance
                    with the test protocol set forth in Annex "H" of this
                    Agreement;

                The foregoing, until such time as:

               (a)  the New FWA RSS F6 Units has satisfactorily complied with
                    the First Market Application; and

               (b)  the New FWA RSS F6 Unit is delivered by Airspan pursuant the
                    Specifications set forth in this Agreement.

               (c)  If through no fault of Airspan, Axtel is unable to complete
                    the First Market Application by March 15th 2005, Airspan
                    shall sell and deliver to Axtel the current F5 and F2 RSS
                    kits instead of the New RSS Unit, at the prices of such
                    Products set forth in Annex "F" until such time as the First
                    Market Application is completed by Axtel.

6.6       As far as both parties are aware the Products comply with all and any
          governmental regulations applicable to such Products at the Effective
          Date (such as "Normas Oficiales Mexicanas"). Airspan will make its
          best efforts to comply with future regulations, provided that, the
          Parties shall previously agree the form to cover the expenses arising
          from the new requirements established by Mexican governmental
          regulations, provided that, if for any reason, Airspan is not willing
          to perform the necessary changes to the Products in order to comply
          with such governmental regulations, Axtel will not be obligated to
          comply with its purchase commitment set forth in Section 23 and Annex
          "K" of this Agreement.

                                      -10-
<PAGE>

6.7       Intentionally Left in Blank.

6.8       Warranty Services: During the warranty period, Airspan provides
          warranty Services without charge for Products supplied under this
          Agreement to correct Products defects or to bring it up to conformance
          with the Specifications set forth in this Agreement. Warranty Services
          to be provided by Airspan are further described in Annex "G" hereof.

6.9       Axtel shall notify Airspan prior to returning any Product and must
          reference a return material authorization number issued by Airspan on
          documentation accompanying such returned Product. When Axtel is
          required to return Products to Airspan for warranty service, Axtel
          agrees to ship it prepaid and suitably packaged to a location Airspan
          designates. Airspan will return the Product to Axtel at Airspan'
          expense. Airspan is responsible for loss of, or damage to, Products
          while they are: (i) in Airspan' possession, or (ii) in transit back to
          Axtel. Any exchanged Product becomes Airspan' property and, subject to
          Section 8 - Title and Risk of Loss, its replacement becomes the
          Axtel's property. The replacement Product may not be new but will be
          in working order and equivalent to the item exchanged. The warranty
          period for the repaired or exchanged Product shall be the greater of
          one hundred and eighty (180) days from the date of delivery of the
          Product back to Axtel, or the remaining Product warranty period. Axtel
          agrees to ensure that exchanged Product is free of any legal
          obligations or restrictions that prevent its exchange and represents
          that all returned items are genuine and unaltered.

6.10      Where applicable, before Airspan provides warranty services, Axtel
          agrees to: (i) follow the problem determination, problem analysis, and
          warranty services request procedures that Airspan provides; (ii)
          secure all program and data contained in Product; and (iii) inform
          Airspan of changes in the Product's location.

6.11      Airspan covenants that Support Services, and Functionality of the
          Products or equivalent replacement, including Spare Parts, shall be
          available to Axtel for a period of 7 years from the Effective Date.
          Notwithstanding the foregoing, Airspan shall give Axtel twelve (12)
          months prior written notice in the event that Airspan discontinues the
          supply of any Products or Software sold hereunder. For such
          discontinued Product and Software, Airspan undertakes to continue
          providing spare parts and technical support, including repair of any
          Products (or part thereof) which are sent to Airspan for that purpose,
          for a period of five (5) years after such discontinuance. In case
          Airspan discontinues the supply of any Product or Software sold
          hereunder during the first two (2) years of the Term, Airspan shall
          make an equivalent Product available to Axtel under the terms of
          Section 14.1 of the Agreement.

6.12      Post-warranty and other Services to supplement the warranty Services,
          including advanced shipment of replacement parts, may be available at
          prices and policies to be negotiated in good faith and agreed between
          the Parties. The warranty service terms and exclusions in Section 6
          above shall apply to post- and supplemental warranty Services.

7.        Services

7.1       Services in General: Axtel agrees to reasonably cooperate with Airspan
          in the performance by Airspan of the Services, including, without
          limitation, providing Airspan with sufficient and timely access free
          of charge to facilities, data, information and personnel of Axtel in
          accordance with the then-current Axtel policies, and a suitable
          physical environment meeting Airspan' specified requirements to permit
          the timely delivery and installation of Products and/or performance of
          Services, including the recovery by Airspan of any tools, diagnostic
          or test equipment, documentation or other items used by Airspan in the
          performance of the Services.

7.2       In addition, Axtel shall be responsible for the accuracy and
          completeness of all data and information that it provides or causes to
          be provided to Airspan. In the event that there are any

                                      -11-
<PAGE>

          delays by Axtel in fulfilling its responsibilities as stated above,
          there is a disagreement between the parties as to the cooperation
          required from Axtel, or there are errors or inaccuracies in the
          information provided, Airspan shall be entitled to appropriate
          schedule and pricing adjustments, including storage fees. It is
          understood and agreed that the Services provided by Airspan may
          include the advice and recommendations of Airspan, but all decisions
          in connection with the implementation of such advice and
          recommendations shall be the sole responsibility of, and made by,
          Axtel, unless such advice and recommendations are part of consulting
          services purchased by Axtel.

7.3       Service Personnel: Airspan and Axtel are each responsible for the
          supervision, direction, compensation and control of their own
          employees and subcontractors. Airspan may subcontract any portion or
          all of the Services to subcontractors selected by Airspan. Neither
          Party shall knowingly solicit to hire employees of the other Party
          with whom it had contact as a result of the performance of the
          Services for a period ending twelve (12) months after completion of
          the Services. Neither Party shall be precluded from conducting
          generalized searches for employees (and hiring those employees who
          respond to generalized searches) either through the use of search
          firms or advertisements in the media, provided that searches are not
          specifically targeted to employees providing Services.

7.4       Intellectual Property Rights: Airspan, on behalf of itself and its
          subcontractors, reserves all proprietary rights in and to: (i) all
          methodologies, designs, engineering details, and other data pertaining
          to the Services and designs, documentation and other work product
          prepared by Airspan and delivered to Axtel, (ii) all original works,
          computer programs and updates developed in the course of providing the
          Services (except Axtel's developed programs) or as otherwise agreed in
          writing by the Parties, (iii) discoveries, inventions, patents,
          know-how and techniques arising out of the Services, and (iv) any and
          all products (including software and equipment) developed as a result
          of the Services. The performance by Airspan of Services shall not be
          deemed work for hire. Airspan grants to Axtel a perpetual,
          non-exclusive, world-wide, paid up license to use, copy and modify the
          designs, documentation and other work product prepared by Airspan and
          delivered to Axtel in the performance of Services solely for Axtel's
          internal business purposes. It is understood between the Parties that
          Airspan will employ its know-how, techniques, concepts, experience and
          expertise, as well as all other intellectual property, including that
          to which it reserves its rights hereunder, to perform services for
          others which are the same as or similar to the Services.

8.        Title and Risk of Loss

8.1       Title and risk of loss for ordered Product (except for the Software)
          shall pass from Airspan to Axtel upon its Delivery to Axtel.

9.        Installation and Commissioning

9.1       Axtel shall perform all installation, commissioning and software
          loading services with respect to the FWA Products, using skilled
          personnel and in accordance with the Airspan Procedures, with the
          exception of REM software upgrades, which shall be installed by
          Airspan pursuant to the FWA TASS Agreement.

10.       Confidential Information

10.1      Confidential information ("Information") means: (i) Software and Third
          Party Software; and (ii) all business, technical, marketing and
          financial information and data that is clearly marked with a
          restrictive legend of the disclosing party ("Discloser").

10.2      The party receiving Information ("Recipient") will use the same care
          and discretion to avoid disclosure, publication or dissemination of
          Information as it uses with its own similar information that it does
          not wish to disclose, publish or disseminate. The Recipient may

                                      -12-
<PAGE>

          disclose Information only to: (i) its employees and employees of its
          parent, subsidiary affiliated companies or subcontractors who have a
          need to know for purposes of carrying out this Agreement; and (ii) any
          other party with the Discloser's prior written consent. Before
          disclosure to any of the above parties, the Recipient will have a
          written agreement with such party sufficient to require that party to
          treat Information in accordance with this Agreement.

10.3      The Recipient may disclose Information to the extent required by law.
          However, the Recipient must give the Discloser prompt notice and make
          a reasonable effort to obtain a protective order.

10.4      No obligation of confidentiality applies to any Information that the
          Recipient: (i) already possesses without obligation of
          confidentiality; (ii) develops independently; or (iii) rightfully
          receives without obligations of confidentiality from a third party. No
          obligation of confidentiality applies to any Information that is, or
          becomes, publicly available without breach of this Agreement.

10.5      Each party's obligations hereunder shall survive for a period of five
          (5) years after receipt of Information hereunder from the Discloser,
          except as otherwise mutually agreed upon by the parties.

10.6      THE DISCLOSER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY NATURE
          WHATSOEVER WITH RESPECT TO ANY INFORMATION FURNISHED TO THE RECIPIENT,
          INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR
          FITNESS FOR A PARTICULAR PURPOSE OR AGAINST INFRINGEMENT, EXCEPT FOR
          THOSE SET FORTH IN SECTION 6 HEREOF.

10.7      The release of any advertising or other publicity relating to this
          Agreement requires the prior approval of both Parties.

11.       Patents and Copyrights

11.1      Airspan shall indemnify and hold harmless Axtel, its officers,
          directors, representatives, agents, employees, contractors,
          subcontractors, subsidiaries and affiliates against any actual direct
          loss, damage, liability, cost, expense, action or claim, including
          reasonable attorneys' fees, litigation costs and expenses and amounts
          paid in settlement, subject to the limitations set forth in the
          following paragraphs, arising out of or in connection with any
          infringement or alleged infringement of patents, copyrights,
          trademarks, trade secrets, or any other intellectual property right of
          a third party.

          Therefore, if a third party claims that a Product or Software
          provided to Axtel under this Agreement infringes such third party's
          patent or copyright, Airspan will defend Axtel against that claim at
          Airspan' expense and pay all costs and damages that a court finally
          awards or are agreed in settlement, provided that Axtel:

          (a)  promptly notifies Airspan in writing of the claim, and (b) allows
               Airspan to control, and cooperates with Airspan at Airspan'
               expense in, the defense and any related settlement negotiations.
               If such a claim is made or appears likely to be made,

          Airspan agrees to secure the right for Axtel to continue to use the
          Product or Software, or to modify it, or to replace it with equivalent
          Product or Software. If Airspan determines that none of these options
          is reasonably available, Axtel agrees to return the Product or
          Software to Airspan on Airspan' written request. Airspan will then
          reimburse to Axtel an amount of money equal to the purchase price paid
          by Axtel for the Product or Software.

                                      -13-
<PAGE>

          Any such claims against Axtel or liability for infringement arising
          from use of the Product or Software following a request for return by
          Airspan are the sole responsibility of Axtel. This represents Axtel's
          sole and exclusive remedy regarding any claim of infringement.

11.2      Airspan has no obligation regarding any claim based on any of the
          following:

          (a)  anything Axtel provides which is incorporated into the Product or
               Software; except for such equipment that has been accepted by
               Airspan in the Specifications set forth in this Agreement

          (b)  compliance by Airspan with Axtel's specifications, designs or
               instructions; except for those set forth in the Specifications
               set forth in this Agreement;

          (c)  any claim by Axtel to Airspan regarding the amount of revenues or
               profits earned or other value obtained by the use of a Product by
               Axtel;

          (d)  Axtel's modification of Product or Software (subject to Section
               4.4(a) hereof);

          (e)  the combination, operation, or use of Product or Software with
               other products not provided by Airspan as a system, or the
               combination, operation, or use of Product or Software with any
               product, data, or apparatus that Airspan did not provide;

          (f)  the Axtel's failure to install or have installed changes,
               revisions or updates as instructed by Airspan; or

          (g)  infringement by a Third Party Vendor Item alone, as opposed to
               its combination with Products Airspan provides to Axtel as a
               system.

12.       Limitation of Liability

12.1      In no event shall Airspan or its agents or suppliers be liable to
          Axtel for more than the amount of any actual direct damages up to the
          greater of U.S. $100,000 (or equivalent in local currency) or the
          charges for the Product or Services that are the subject of the claim,
          regardless of the cause and whether arising in contract, tort or
          otherwise. This limitation will not apply to claims for damages for
          bodily injury (including death) and damage to real property and
          tangible personal property for which Airspan is legally liable and
          payments as set forth in Section 11 - Patents and Copyrights.

12.2      IN NO EVENT SHALL AIRSPAN OR ITS AGENTS OR SUPPLIERS BE LIABLE FOR ANY
          OF THE FOLLOWING: I) DAMAGES BASED ON ANY THIRD PARTY CLAIM, EXCEPT AS
          EXPRESSLY PROVIDED FOR HEREIN; II) LOSS OF, OR DAMAGE TO, AXTEL'S
          RECORDS, FILES OR DATA; OR III) INDIRECT, SPECIAL, INCIDENTAL,
          PUNITIVE, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS OR LOST
          SAVINGS), EVEN IF AIRSPAN IS INFORMED OF THEIR POSSIBILITY.

13.       Concessions

13.1      Axtel hereby warrants and represents that it and its affiliates in
          Mexico have obtained the Concessions which will permit each of them to
          legally operate all or a portion of the Products in Mexico. The
          Parties agree that Airspan shall not deliver or install any Products,
          perform any Services or accept any Orders hereunder unless Axtel or
          its affiliates (if applicable) have been granted a Concession in
          Mexico for the use of such Products.

14.       Changes or Substitution of Products

                                      -14-
<PAGE>

14.1      At any time, Airspan may implement changes to the Products, modify the
          Products' designs and Specifications or substitute the Products with
          ones of similar or more recent design. The Parties shall mutually
          agree on the Price of such changed or substituted Products. Such a
          change to or substitution of the Products provided under this
          Agreement shall be subject to the following requirements: (i) shall
          not adversely affect the physical or functional interchangeability or
          the performance Specifications of the Products, except as otherwise
          agreed in writing by Axtel; (ii) the price for equivalent performance
          shall be the same or lower than the price agreed hereunder, except as
          otherwise agreed in writing by Axtel; (iii) any change or substitution
          of the Products shall be functionally equivalent and compatible with
          the changed or substituted Product, without the need for any other
          adaptations; and (iv) shall under no circumstances either reduce or
          decrease Airspan' warranty obligations set forth in this Agreement.

15.       Delayed Shipment of the Products or the Performance of the Services

15.1      If Axtel notifies Airspan less than thirty (30) days prior to the
          scheduled delivery date of the Products (or if the Products have been
          manufactured per the agreed upon schedule) that Axtel does not wish to
          take delivery thereof at the scheduled time or that a site is not
          available to receive such Products, or if Axtel fails to take delivery
          of such Products upon their arrival at the applicable site, Airspan
          shall have the right to place the Products in storage and Axtel shall
          bear all costs of demurrage, restocking, warehousing, reloading,
          transporting, off-loading, and other associated costs incurred by
          Airspan. All such costs shall be paid in full within thirty (30) days
          of Axtel's receipt of Airspan' commercial invoice therefor.

15.2      If Axtel notifies Airspan less than thirty (30) days prior to the
          scheduled performance date of the Services that Axtel does not wish
          Airspan to perform such Services at the scheduled time or that the
          Site is not available for the performance of such Services, Airspan
          shall have the right to delay the performance of the Services and
          Axtel shall bear all associated and documented out of pocket travel
          and expense costs incurred by Airspan. All such costs shall be paid in
          full within thirty (30) days of Axtel's receipt of Airspan' commercial
          invoice therefor.

15.3      Site facilities and physical specifications of equipment (including
          shelters, fiber cabling, power, etc.) provided by Axtel for use with
          the Products sold hereunder must meet Airspan' installation and
          environmental Specifications. Any testing required to verify the
          condition of Site facilities and any required upgrades will be at
          Axtel's expense.

16.       Termination; Survival

16.1      Without prejudice to any rights and remedies provided for hereunder,
          either Party hereto may terminate at its option, this Agreement or the
          relevant Orders as provided below, effective immediately, upon written
          notice to any other Party, upon the occurrence of any of the following
          events or conditions (each, an "Event of Default"):

          (i)   the other Party applies for or consents to the appointment of,
                or the taking of possession by a receiver, custodian, trustee or
                liquidator of itself or of all or a substantial part of its
                property,

          (ii)  the other Party makes a general assignment for the benefit of
                its creditors,

          (iii) the other Party commences a voluntary proceeding under the
                bankruptcy, insolvency or similar laws relating to relief from
                creditors generally,

          (iv)  the other Party fails to contest in a timely or appropriate
                manner, or acquiesces in writing to, any petition filed against
                it in an involuntary proceeding under the bankruptcy, insolvency
                or similar laws relating to relief from creditors generally, or
                any application for the appointment of a receiver, custodian,
                trustee, or liquidator of itself

                                      -15-
<PAGE>

               or of all or a substantial part of its property or its
               liquidation, reorganization, dissolution or winding-up, or (v)
               the other Party materially fails to perform any term or condition
               under this Agreement or any of its Annexes, which failure
               continues for a period of thirty (30) days after written notice
               has been given to the breaching Party;

          (vi)  if Axtel becomes entitled to the maximum liquidated damages with
                respect to the delivery of Products under any Order pursuant to
                Sections 3.4 and 3.4.1 above.

          With respect to the Events of Default indicated in sections (v) and
          (vi) above, the affected Party will have the right, at its election,
          to terminate this Agreement (together with any pending Order) or only
          the relevant Order(s).

16.2      The respective obligations of each Party pursuant to Sections 1,
          4, 5, 6, 7, 10, 11, 12, 16 and 18 hereof, and any other obligations of
          each Party pursuant to this Agreement that by their nature would
          continue beyond the termination, cancellation, or expiration hereof,
          shall survive such termination, cancellation, or expiration.;
          provided, however, that if Axtel fails to make payment in accordance
          with the terms and conditions hereof (subject to the cure period
          provided in Section 16.1 above), the Parties expressly agree that the
          following Sections hereof shall not survive such termination,
          cancellation, or expiration: Sections 6 and 7 only with respect to the
          Products that were not paid in full by Axtel; and provided, further,
          that Section 4 hereof shall survive such termination, cancellation, or
          expiration only to the extent that Axtel is not in default of the
          payment of the applicable Software license fees, if any.

17.       Airspan Procedures, Manuals and Documentation

17.1      "Airspan Procedures" will consist of documents which describe in
          detail the engineering, installation, commissioning, maintenance,
          troubleshooting and operation of Product(s). The Airspan Procedures
          shall be provided in the English language. Airspan shall provide the
          Airspan Procedures in Spanish if so published. Airspan shall ship
          electronic documentation containing the applicable Airspan Procedures
          to Axtel with the initial delivery of a system release to Axtel.
          During the Term, Airspan shall, at no additional charge to Axtel,
          deliver to Axtel, one set of electronic files with updates, revisions
          and/or corrections of such Airspan Procedures as they become
          available. Axtel may order additional copies of the Airspan Procedures
          at Airspan's then applicable prices. Axtel may use and reproduce the
          Airspan Procedures in paper format for the purposes of engineering,
          installing, commissioning, maintaining, troubleshooting and operating
          the Products, subject to the limitations regarding Information set
          forth in Section 10. Reproduction shall include the copyright or
          similar proprietary notices. Axtel is responsible for ensuring proper
          versions of the Airspan Procedures are printed and distributed.

18.       General

18.1      Axtel agrees that it will not export Products procured hereunder from
          Mexico without Airspan's prior written consent. Airspan reserves the
          right to assign any portion of an Order accepted under this Agreement,
          in whole or in part, provided that such assignment shall be in
          compliance with the provisions of Section 20 below if such assignment
          falls under the situation provided for in Section 20 of this
          Agreement...

18.2      Axtel agrees to comply with all laws applicable to it, including all
          applicable export and import laws and regulations. In the event that
          any provision of this Agreement or portions thereof are held to be
          invalid or unenforceable, the remainder of this Agreement will remain
          in full force and effect.

18.3      The terms and conditions of this Agreement, and its Annexes, form the
          complete and exclusive agreement between Axtel and Airspan and replace
          any prior oral or written communications and agreements regarding the
          subject matter thereof.

                                      -16-
<PAGE>

18.4      Any changes to this Agreement must be made by mutual agreement in
          writing.

18.5      The laws of the State of New York, United States of America govern
          this Agreement, exclusive of its conflict of laws provisions; and
          nothing in this Agreement affects any statutory rights of consumers
          that cannot be waived or limited by contract. The United Nations
          Convention on the International Sale of Goods shall not apply.

18.6      If, within thirty (30) days from the date of any notice of dispute
          from a Party to any other Party, such Parties are unable to resolve
          the issue, then either Party may initiate the binding arbitration to
          resolve such dispute by written notice to such other Party upon
          expiration of such thirty (30) day period. Any dispute between the
          Parties arising in connection with this Agreement shall be exclusively
          resolved by arbitration pursuant to the Rules of Conciliation and
          Arbitration of the International Chamber of Commerce then in force.
          The arbitration proceedings pursuant to this Section 18(c) shall take
          place in the English language in the City of Miami, State of Florida,
          before a panel of three (3) arbitrators appointed in accordance with
          the aforementioned rules. The decision of the arbitrators shall be
          final and binding upon the Parties and their respective successors and
          assigns. The decision and award rendered by the arbitrators may be
          entered in any court of competent jurisdiction and any such court may
          order the enforcement of such award against the Parties and their
          respective successors and assigns.

18.7      EACH PARTY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN
          ANY LEGAL PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR
          THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING ANY ORDER ISSUED AND
          ACCEPTED HEREUNDER.

18.8      Notwithstanding anything in this Agreement to the contrary, if the
          supply of the Products or the performance of the Services by Airspan,
          or any portion thereof, or the performance of any other obligation
          hereunder by any party is prevented, delayed, interfered with, or
          interrupted by reason of a Force Majeure Event, such prevention,
          delay, interference, or interruption shall be deemed not to be a
          default pursuant to this Agreement and the time or times for such
          performance or supply hereunder shall be extended by the period or
          periods same is so prevented, delayed, interfered with, or
          interrupted. The foregoing shall apply even though any such cause
          exists or is foreseeable as of the date hereof. Neither Party shall be
          required to change its usual business practices or methods or to
          assume or incur other than its usual costs or expenses in order to
          mitigate, avoid, or eliminate any Force Majeure Event or to reduce the
          period of any resulting delay. Each Party shall notify the other
          Parties of any delay or failure excused by this Section 18.9) and
          shall specify the revised performance date as soon as practicable.
          Nothing contained in this Section 18.9 shall affect any obligation of
          Axtel to make any payment when due in accordance with this Agreement.

18.9      All notices pursuant to this Agreement will be in writing and deemed
          given when delivered in person, by certified mail or courier service,
          or by facsimile.

          Notices to Axtel shall be sent to:

          Axtel, S.A. de C.V.
          Boulevard Gustavo Diaz Ordaz Km. 3.33 L-1
          Colonia Unidad San Pedro
          San Pedro Garza Garcia
          Nuevo Leon, Mexico

          Attention: Director de Negociaciones Estrategicas
          with a copy to the Corporate Counsel.

                                      -17-
<PAGE>

          Notices to Airspan shall be sent to:

          Airspan Communications Limited
          Cambridge House
          Oxford Road
          Uxbridge
          Middlesex, England
          UB8 1UN

          Attention: Vice President & Controller

          with a copy to:

          Airspan Networks Inc
          777 Yamato Road, suite 105
          Boca Raton, FL 33431
          USA

          Attention: Senior Vice President & Chief Financial Officer

18.10     The relationship between Airspan and Axtel during the term hereof
          shall be that of vendor and purchaser with respect to the purchase of
          the Hardware and licensor and licensee with respect to license of the
          Software. A Party's agents, employees, representatives shall under no
          circumstances be deemed employees, agents or representatives of the
          other Party or its affiliates.

18.11     All work to be performed in connection with this Agreement shall be
          by qualified workers or firms whose employees are not objectionable to
          the trade unions that may be engaged in work on the premises. Airspan
          shall be wholly responsible for all trade union relations in
          connection to its employees and Axtel shall not be liable in any way
          through delays or claims arising through such causes in connection to
          Airspan employees.

19.       Intentionally Left in Blank.

20.       Assignment; Right of First Refusal

20.1      Each Party agrees not to assign or otherwise transfer this Agreement
          or its rights under it, or delegate its obligations, without the other
          Party's prior written consent, and any attempt to do so is void.
          Notwithstanding the foregoing, Airspan may assign or otherwise
          transfer this Agreement or its rights under it, or delegate its
          obligations, to any of its affiliates. Airspan may also assign or
          otherwise transfer this Agreement or its rights under it, or delegate
          its obligations, to any purchaser of the FWA Business without the
          Axtel's prior written consent; provided that:

          (i)   Airspan shall provide to Axtel the soliciting or offering
                material used in connection with any contemplated sale of the
                FWA Business (the "FWA Information") at the same time any such
                FWA Information is provided to any third party potential
                purchaser (the "Potential Purchasers"), subject to execution by
                the Parties of a non-disclosure agreement in a form and
                substance reasonably satisfactory to Airspan, but no less
                restrictive on Axtel than the non-disclosure agreement executed
                with the Potential Purchasers; and provided, however, that
                Airspan may not offer, solicit interest in or sell the FWA
                Business to any company which is a direct competitor of Axtel
                or does not have the necessary resources (human and/or
                technical), at Airspan' reasonable

                                      -18-
<PAGE>

                judgment, to manufacture the Products and/or to provide the
                technical support required by Axtel, including without
                limitation, Telefonos de Mexico, S.A. de C.V. or any of its
                affiliates (the "Restricted Companies");

          (ii)  Airspan hereby grants to Axtel a right of first refusal ("RFR")
                with respect to any offer received by Airspan from any third
                party which Airspan proposes to accept (including any revised
                offers), allowing Axtel to purchase the FWA Business on terms
                not less favorable than such offer, subject to Axtel having
                made, within forty five (45) days after Airspan shall have
                delivered written notice to Axtel of such offer or revised offer
                (the "Vendor's Notice"), a single deposit for the amount equal
                to five (5) percent of the amount of the third party offer (the
                "Deposit") into an interest bearing escrow account. Once Airspan
                has received the Deposit, Axtel shall have the right to perform
                a due diligence investigation of the FWA Business, and Airspan
                shall be obligated to promptly provide all the information and
                access that Axtel reasonably requires for the evaluation of the
                FWA Business; and

          (iii) in the event of any such sale to a purchaser other than Axtel,
                such new vendor shall assume all of Airspan's obligations under
                this Agreement.

20.2      If Axtel exercises its RFR, Airspan and Axtel shall have ninety (90)
          days from payment of the Deposit to negotiate in good faith and enter
          into a purchase agreement pursuant to which Airspan will sell the FWA
          Business to Axtel, unless a longer period of time is stated in the
          offer received from the Potential Purchaser, in which case such longer
          period shall prevail (the "Offer Period"). If the Parties have entered
          into such an agreement by the end of the Offer Period, the Deposit
          shall be credited towards the purchase price of the FWA Business. If
          the Parties have not entered into such an agreement by the end of the
          Offer Period, Axtel shall forfeit in favor of Airspan the Deposit, and
          Airspan shall have the right to sell the FWA Business to any Potential
          Purchaser other than a Restricted Company, subject to the terms and
          conditions of Section 20.3 below; provided, however, that if the terms
          of the proposed sale are more favorable to such Potential Purchaser
          than the best offer (from Airspan' perspective) presented by Axtel to
          Airspan during the Offer Period, then the RFR shall again apply to
          such sale, but Axtel shall not be obligated to provide any additional
          Deposit.

20.3      If Axtel shall decline in any instance to exercise its RFR or the
          Parties fail to enter into the purchase agreement as described in
          Section 20.2, Airspan shall have the right for a period of one year
          from the date of such declination or failure, to sell the FWA Business
          to a Potential Purchaser (except if such Potential Purchaser is a
          Restricted Company) without prior notice to Axtel, on terms which are
          not more beneficial to such Potential Purchaser than those set forth
          in Vendor's Notice. If the foregoing conditions are not met, the RFR
          shall again apply to such sale; provided, however, that the 90-day
          term provided in Section 20.2 above shall be reduced to forty five
          (45) days and Axtel shall not be obligated to provide any additional
          Deposit.

21.       Airspan Security Instrument.

21.1      The Parties hereby acknowledge that the current Bank Guarantee granted
          by Airspan to Axtel pursuant the Second Amendment No. 2 shall continue
          to remain open until Airspan delivers to Axtel all the Products
          covered currently by such Bank Guarantee (the Orders Guaranteed by
          Airspan). Thereafter, Axtel shall agree to the release and termination
          of the Bank Guarantee. In addition to the foregoing, the Parties
          hereby agree that, if after the Effective Date of this Agreement,
          Axtel makes new payments in the circumstances described in Section
          21.2 below, Airspan shall obtain and maintain a new Bank Guarantee to
          cover the respective Excess Exposure Amount until such time as
          aggregate amounts paid fall below the Excess Exposure Amount.

                                      -19-
<PAGE>

21.2      The Parties hereby acknowledge that, from time to time, Axtel may make
          payments to Airspan under this Agreement such that the aggregate
          amount of those payments for Orders where the related Product has not
          been delivered may at times exceed US $10,000,000.00 ("Exposure
          Limit") in respect of Orders that have not been fully delivered
          ("Orders Guaranteed by Airspan").

21.3      Intentionally Left in Blank.

21.4      The Parties agree that Airspan will cause to be issued in favor of
          Axtel, at Airspan's expense, when such Exposure Limit is exceeded, one
          or more irrevocable standby letters of credit or bank guarantees
          (together the "Bank Guarantee"), issued by Airspan's UK bank at
          Axtel's satisfaction, for an aggregate amount equivalent to all the
          amounts paid by Axtel in excess of the Exposure Limit (the "Excess
          Exposure Amount").

21.5      The Parties further agree that the aggregate value of the Bank
          Guarantee, as measured and agreed by the parties at the end of each
          month, will continue to be equal or greater than the likely peak
          Excess Exposure Amount for the following month.

21.6      The Bank Guarantee will permit Axtel, on or before its expiry date, to
          draw down the portion of the Bank Guarantee applicable to the funds
          received by Airspan as a down payment with respect to the delivery
          covered by that Bank Guarantee, upon the occurrence of any of the
          following events or conditions:

          (i)   Airspan applies for or consents to the appointment of, or the
                taking of possession by a receiver, custodian, trustee or
                liquidator of itself or of all or a substantial part of its
                property,

          (ii)  Airspan makes a general assignment for the benefit of its
                creditors,

          (iii) Airspan commences a voluntary proceeding under the bankruptcy,
                insolvency or similar laws relating to relief from creditors
                generally,

          (iv)  Airspan fails to contest in a timely or appropriate manner, or
                acquiesces in writing to, any petition filed against it in an
                involuntary proceeding under the bankruptcy, insolvency or
                similar laws relating to relief from creditors generally, or any
                application for the appointment or a receiver, custodian,
                trustee, or liquidator or itself or of all or a substantial part
                of its property or its liquidation, reorganization, dissolution
                or winding-up.

          (v)   Airspan fails to deliver Products ordered by Axtel under this
                Agreement, within a period of thirty (30) days after the
                delivery date applicable for such Products, pursuant the terms
                of this Agreement; provided (i) that after fifteen (15) days
                following the date on which Airspan has failed to make a
                delivery, Axtel has provided written notice to Airspan of such
                failure, and (ii) that the thirty (30) day period shall be
                extended where the failure is caused by Force Majeure Event, by
                the number of days for which the Force Majeure Event is in
                existence (if the Force Majeure Event continue for more than 60
                days, Axtel will have the right to cancel the respective
                Order(s) and to collect from the Bank Guarantee all applicable
                payments paid to Airspan by Axtel for such Product).

22.       Second Lines Module.

22.1      Airspan hereby sells to Axtel the Second Lines Module of (i) all of
          the FWA RSS Products purchased by Axtel before the Effective Date and
          (ii) all of the FWA RSS Products that will be purchased by Axtel in
          the future; in consideration for the Second Line Module, Axtel hereby

                                      -20-
<PAGE>

          agrees to pay Airspan the amounts of US[ * ] within five (5) days
          after the date of this Agreement, subject to the issuance of the
          respective Order and the delivery of the respective invoice. Axtel
          will issue the respective Order no later than 2 days after the
          Effective Date of this Agreement; and Airspan will issue the invoice
          no later than 2 days after receipt of the Order.

22.2      Once Axtel has made the payment to Airspan mentioned in Section 22.1,
          Axtel shall have acquired the Second Lines Module of all of the FWA
          RSS Products purchased and to be purchased by Axtel, without being
          obligated to pay Airspan any other additional amount or charge with
          respect to such use and activation of the Second Lines Module of the
          FWA RSS Products.

23.       Purchase Commitment

23.1      Axtel hereby irrevocably agrees to purchase from Airspan the minimum
          annual amounts of Products as further described in Annex "K" hereof.

23.       Titles and Subtitles

23.1      The titles and subtitles used in this Agreement are for convenience
          only and are not a part of this Agreement and do not in any way limit
          or amplify the terms and provisions of this Agreement.

The Parties hereto have executed this Purchase and License Agreement for FWA
Equipment as of December 28, 2004 and it shall become effective on the Effective
Date.

AXTEL, S.A. DE C.V.                      AIRSPAN COMMUNICATIONS LIMITED

By: _______________________________     By: ______________________________
Name: Jose Antonio Velasco Carmona          Name: Peter Aronstam
Title: Legal Representative                  Title: Senior Vice President

                                      -21-

<PAGE>

                                     Annex B

                             CHANGE ORDER PROCEDURES

<PAGE>

                                     ANNEX B

                             CHANGE ORDER PROCEDURES

The following procedure shall apply to the issuance of Change Orders under the
Agreement. Capitalized terms used and not defined herein have the meanings
attributed to them in the Agreement.

1.        Change Order

          Any changes made by Customer after the effective date of the
          Agreement, resulting in adjustments to the content and/or
          specifications of the Products, Services, process, job schedule or
          other requirements shall be considered a change order ("Change
          Order"). The form of Change Order is attached hereto.

          1.1  Customer shall issue a written communication to the Airspan
               Account Manager detailing the nature of the modifications it
               wishes to make.

          1.2  The Airspan Account Manager shall return to Customer with an
               assessment of requirements to present a quotation.

          1.3  Upon acceptance of Airspan' quotation. Customer shall issue a
               Change Order in the form attached hereto and deliver it to
               Airspan five (5) business days from receipt of Airspan'
               quotation.

2.        Non-Billable Change Order If changes to the content and specifications
          of the Products or Services after the Start Date of the Agreement are
          deemed non-billable to Customer by Airspan, "Non-Billable" shall be
          checked off on the Change Order.

3.        Customer Information In cases where the Change Order is not based on
          models or merchandise, the Customer Information (CI) meeting shall be
          held and a related document shall be completed by Customer with the
          assistance of the Airspan' Systems Application Engineer, capturing all
          network specifications. Customer shall approve this document prior to
          each request for quotation and subsequent Change Order.

                                      -2-
<PAGE>

                                                          ANNEX B - ATTACHMENT 1
                                                            FORM OF CHANGE ORDER

                                                             Axtel, S.A. de C.V.
                               Re: Purchase and License Agreement dated ________
                                                     Change Order No.: _________
                                            Circle One: Billable or Non-Billable

1.        This Change Order is issued pursuant to Section 2 of the Purchase and
          License Agreement, dated __________ (the "Agreement"), by and between
          Axtel, S.A. de C.V. ("Customer") and Airspan Communications Limited.
          This Change Order and the Products and Services to be supplied under
          this Change Order shall be subject to all the terms and conditions set
          forth in the Agreement.

2.        This Change Order shall become effective upon execution by authorized
          representatives of Airspan and Customer.

3.        Origin and Description of Changes:

          [insert narrative explaining reason for change]

          [INSERT ONLY IF NON-BILLABLE: The purpose of this Change Order is to
          notify you of some changes in the project as described below. Airspan
          deems these changes non-billable. Any reference to prices or value is
          for informational purposes only. Airspan requests your acknowledgement
          below to the changes described in this Change Order. This Change Order
          shall be deemed accepted if Airspan has not received your express
          rejection within thirty days from the date set forth above.]

4.        Resulting Adjustment

          [address addition, deletion or change in Products to be delivered,
          change in Price, Schedule, Delivery Term, etc.]

In witness whereof, the Parties have executed this Change Order on the ____ day
of ____________, 200_.

AXTEL, S.A. DE C.V.

By:  ______________________________________
Print Name:________________________________
Title:_____________________________________

AIRSPAN COMMUNICATIONS LIMITED

By:  ______________________________________
Print Name:________________________________
Title:_____________________________________

                                      -3-

<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

                                     Annex C
                             DESCRIPTION OF PRODUCTS

                                     Page 1
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

                                     Annex C

                             DESCRIPTION OF PRODUCTS

1.   DOCUMENT SCOPE

1.1  Document Scope

     This document details the definition of the FWA equipment to be supplied by
     Airspan to AXtel. Note that "Qty." refers to the quantity of a component
     required for that configuration. Where the quantity of a component required
     for a configuration differs from the unit of measure for that component,
     the unit of measure is included in the description of that component.
     Equipment can only be ordered in whole multiples of the associated unit of
     measure.

2.1.1 FWA Description of Equipment

2.1.1.1 Intentionally Left in Blank

2.1.1.2 Customer Premise Equipment Kits.

                  An F2 RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG17DA             F2 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500M)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GR             Dual Jacket Drop Cable Connector (50)            0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

                  An F5 RSS Kit is defined as follows (RDA KIT EXCLUDED):

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG18DA             F5 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

                                     Page 2
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

                  An F5v2 Analog RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG18DB             F5v2 Analog RTU                                  1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

                  An F6 Single Model RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG19DE             F6 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-----------------------------------------------------------------------------

                  An RDA Kit is defined as follows:

-------------------- ------------------------------------------------ -------
NTEG18FA             RDA                                              1
-------------------- ------------------------------------------------ -------

                  An F5 RSS Kit is defined as follows:

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG18DA             F5 RTU                                           1
-------------------- ------------------------------------------------ -------
NTEG18FA             RDA Kit                                          1
-------------------- ------------------------------------------------ -------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ -------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ -------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ -------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ -------

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ -------
NTEG99GR             Dual Drop Cable Connector (50)                   0.02
-------------------- ------------------------------------------------ -------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ -------

                                     Page 3
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.1.1.3           Installation Brackets for F5 & F2 RSS.

                  Compact Mounting Bracket

-------------------- ------------------------------------------------ -------
        PEC                            Description                     Qty.
-------------------- ------------------------------------------------ -------
     NTEG19AJ                 Compact Mounting Bracket (10)             1
-------------------- ------------------------------------------------ -------
     NTEG99DC                  Mounting Coach Screw (200)             0.015
-------------------- ------------------------------------------------ -------
     NTEG99DD                        Washer M8 (200)                  0.015
-------------------- ------------------------------------------------ -------
     NTEG99DE                       Frame Fixing(200)                 0.015
-------------------- ------------------------------------------------ -------

2.1.1.4           Radio Basestation Kits

                  Discrete  Radio Basestation Configurations.

                  The following configurations are representative of a typical
installation. Specific installations may require variations on these
definitions.

------------------- ------------------------------- -------------- -------------
       PEC                   Description               18b RBS        27b RBS
------------------- ------------------------------- -------------- -------------
     NTED4575       Transceiver Processor Module          5              7
------------------- ------------------------------- -------------- -------------
     NTEG72AD       Transceiver Baseband Module           5              7
                    Combining Diversity
------------------- ------------------------------- -------------- -------------
     NTEG77EC       Transceiver Masthead Unit Kit         6              9
------------------- ------------------------------- -------------- -------------
     NTEG97PC       Antenna to TMU 4m Cable               6              9
------------------- ------------------------------- -------------- -------------
     NTEG94BD       1M Pre-Fit Cabinet                    1              2
------------------- ------------------------------- -------------- -------------
     NTEG63AA       Transceiver Timer Module              0              0
------------------- ------------------------------- -------------- -------------
     NTEG73AA       Network Management Module             0              0
------------------- ------------------------------- -------------- -------------
     NTEG99CJ       TMU to Cabinet IF 1/2 " cable          0.6            0.9
                    (500m)
------------------- ------------------------------- -------------- -------------
     NTEG91BA       1/2  " IF Cable Connector Kit           6              9
------------------- ------------------------------- -------------- -------------
     NTEG99CE       TMU to Cabinet Power cable           0.6            0.9
                    (500m)
------------------- ------------------------------- -------------- -------------
     NTEG93AA       Power Cable Connector Kit             6              9
------------------- ------------------------------- -------------- -------------
     NTEG99CA       TMU to Cabinet Data Cable            0.6            0.9
                    (500m)
------------------- ------------------------------- -------------- -------------
     NTEG92AA       Data Cable Connector Kit              6              9
------------------- ------------------------------- -------------- -------------

------------------- ------------------------------- -------------- -------------
       PEC                   Description               18b RBS        27b RBS
------------------- ------------------------------- -------------- -------------
     NTEG97MF       120 Degree Horizontal              Up to 6        Up to 9
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------
     NTEG97ME       120 Degree Vertical                Up to 6        Up to 9
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------
     NTEG97NF       60 Degree Horizontal               Up to 6        Up to 9
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------
     NTEG97NE       60 Degree Vertical                 Up to 6        Up to 9
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------

                                     Page 4
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

------------------- ------------------------------- -------------- -------------
     NTEG97NG       40 Degree Vertical                    0              0
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------
     NTEG97NH       40 Degree Horizontal                  0              0
                    Polarization Antenna
------------------- ------------------------------- -------------- -------------
     NTEG94PA       120 Ohms primary E1 cable             1              2
------------------- ------------------------------- -------------- -------------

With regard to antennas for the various basestation configurations, the
quantities shown above reflect the maximum number of each antenna that could be
required in a specific installation. The combined total actual antenna
requirement for each configuration is:

                  18b - 6
                  27b - 9
                  48b - 18

For clarity, NTEG94BD (1M Pre-Fit Cabinet) and NTEG77EC (Transceiver Masthead
Unit Kit) are defined as follows:

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------
                                     NTEG94BD 1M Pre-Fit Cabinet
------------------------------------------------------------------------------------------------------
       PEC                                         Description                                  Qty.
------------------- -------------------------------------------------------------------------- -------
<S>                 <C>                                                                         <C>
NTED4575            Transceiver Processor Module                                                 1
------------------- -------------------------------------------------------------------------- -------
NTEG63AA            Transceiver Timer Module                                                     2
------------------- -------------------------------------------------------------------------- -------
NTEG72AD            Transceiver Baseband Module Combining Diversity                              1
------------------- -------------------------------------------------------------------------- -------
NTEG73AA            Network Management Module                                                    1
------------------- -------------------------------------------------------------------------- -------
NTEG7662            CABINET CABLE SET TYPE 2                                                     1
------------------- -------------------------------------------------------------------------- -------
NTEG74BA            Over Voltage Protection Module                                               3
------------------- -------------------------------------------------------------------------- -------
NTEG76BA            ITS Fan Tray Assembly                                                        1
------------------- -------------------------------------------------------------------------- -------
NTEG76CC            Secondary DC Breaker Rack Filtered                                           1
------------------- -------------------------------------------------------------------------- -------
NTEG76FB            I.T.S Basestation Diversity Sub Rack                                         1
------------------- -------------------------------------------------------------------------- -------
NTEG76GA            I.T.S U.K Maintenance Port Assembly                                          1
------------------- -------------------------------------------------------------------------- -------
NTEG94AN            1.0M Cabinet Floor Mounting Plinth                                           1
------------------- -------------------------------------------------------------------------- -------
NTEG94FA            Alarm Connector Block                                                        1
------------------- -------------------------------------------------------------------------- -------
NTEG94QA            1.0M Internal ITS Cabinet                                                    1
------------------- -------------------------------------------------------------------------- -------

------------------------------------------------------------------------------------------------------
                               NTEG77EC Transceiver Masthead Unit Kit
------------------- -------------------------------------------------------------------------- -------
       PEC                                         Description                                  Qty.
------------------- -------------------------------------------------------------------------- -------
NTEG77CA            T.M.U./T.A.S. Ground Bond Kit                                                1
------------------- -------------------------------------------------------------------------- -------
NTEG77DA            Sun Shield Assembly                                                          1
------------------- -------------------------------------------------------------------------- -------
NTEG77GB            T.M.U. Assemble BF Band (100MHz)                                             1
------------------- -------------------------------------------------------------------------- -------
P0821020            U Bolt 61 C R S                                                              2
------------------- -------------------------------------------------------------------------- -------
P0821021            U Bolt 126 C R S                                                             2
------------------- -------------------------------------------------------------------------- -------
P0834843            T.M.U. Mounting Bracket V3                                                   1
------------------- -------------------------------------------------------------------------- -------

</TABLE>

2.1.1.5 Discrete Radio Basestation Upgrade Configurations.

     The following configurations are representative of a typical installation,
     eg. 45m cable runs assumed. Specific installations may require variations
     on these definitions.

                                     Page 5
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

------------------- --------------------------- ---------------- -------------------
       PEC                 Description            18b to 27b       PDS Upgrade to
                                                    Upgrade           18b ITS
------------------- --------------------------- ---------------- -------------------
<S>                 <C>                                <C>               <C>
     NTED4575       Transceiver Processor              2                 0
                    Module
------------------- --------------------------- ---------------- -------------------
     NTEG72AD       Transceiver Baseband               2                 0
                    Module Combining Diversity
------------------- --------------------------- ---------------- -------------------
     NTEG77EC       Transceiver Masthead Unit          3                 0
                    Kit
------------------- --------------------------- ---------------- -------------------
     NTEG97PC       Antenna to TMU 4m Cable            3                 0
------------------- --------------------------- ---------------- -------------------
     NTEG94BD       1M Pre-Fit Cabinet                 1                 0
------------------- --------------------------- ---------------- -------------------
     NTEG63AA       Transceiver Timer Module           0                 0
------------------- --------------------------- ---------------- -------------------
     NTEG73AA       Network Management Module          0                 0
------------------- --------------------------- ---------------- -------------------
     NTEG99CJ       TMU to Cabinet IF1/2"             0.3                0
                    cable  (500m)
------------------- --------------------------- ---------------- -------------------
     NTEG91BA       1/2" IF Cable Connector            3                 0
                    Kit
------------------- --------------------------- ---------------- -------------------
     NTEG99CE       TMU to Cabinet Power              0.3                0
                    cable (500m)
------------------- --------------------------- ---------------- -------------------
     NTEG93AA       Power Cable Connector Kit          3                 0
------------------- --------------------------- ---------------- -------------------
     NTEG99CA       TMU to Cabinet Data Cable         0.3                0
                    (500m)
------------------- --------------------------- ---------------- -------------------
     NTEG92AA       Data Cable Connector Kit           3                 0
------------------- --------------------------- ---------------- -------------------
     NTEG97MF       120 Degree Horizontal           Up to 3              0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG97ME       120 Degree Vertical             Up to 3              0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG97NF       60 Degree Horizontal            Up to 3              0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG97NE       60 Degree Vertical              Up to 3              0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG97NG       40 Degree Vertical                 0                 0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG97NH       40 Degree Horizontal               0                 0
                    Polarization Antenna
------------------- --------------------------- ---------------- -------------------
     NTEG71HA       Transceiver processor              0                 2
                    Module - Packet Data
------------------- --------------------------- ---------------- -------------------
       N/A          Packet Data Software               0                 1
                    Activation Fee
------------------- --------------------------- ---------------- -------------------

</TABLE>

                  With regard to antennas for the various basestation upgrade
                  configurations, the quantities shown above reflect the maximum
                  number of each antenna that could be required in a specific
                  installation. The combined total actual antenna requirement
                  for each upgrade configuration is:
                  18b to 27b Upgrade - 3
                  27b to 48b Upgrade - 12

                                     Page 6
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.1.1.6  FWA Software.

------------ -------------------------------------------------------- ----------
    PEC                            Description                           Qty.
------------ -------------------------------------------------------- ----------
    N/A      Basestation Packet Data Software Activation Fee               1
------------ -------------------------------------------------------- ----------
                                                                               1
             RMT SOFTWARE LICENSE FEE
------------ -------------------------------------------------------- ----------

2.1.1.7           FWA OA&M Equipment.

                  Field Engineering Terminal (FET).
Choose one of the following.

<TABLE>
<CAPTION>

--------------- -------------------------------------------------------- -------------
     PEC                              Description                            Qty.
--------------- -------------------------------------------------------- -------------
<S>             <C>                                                           <C>
   NTEG30AN     FET System Complete (LINUX)on  Panasonic CF27                 1
--------------- -------------------------------------------------------- -------------
   NTEG30AF     LINUX FET Software Application Kit for Panasonic CF27         1
--------------- -------------------------------------------------------- -------------

                  Residential Installation System (RIS).
Survey Kit

------------------ -------------------------------------------------------- -------------
       PEC                               Description                            Qty.
------------------ -------------------------------------------------------- -------------
    NTEG24BF                     100 MHz Generic Survey Kit                      1
------------------ -------------------------------------------------------- -------------
   NTEG10DCBV              RSS Installation Sub-Set Documentation                1
------------------ -------------------------------------------------------- -------------
    P0872025                             Large Belt                              1
------------------ -------------------------------------------------------- -------------
    NTEG24BE            RTU SAK/Handle Pole Kit (5.5m extension kit)             1
------------------ -------------------------------------------------------- -------------
    NTEG22EB                       RTU SAK/Handle Assembly                       1
------------------ -------------------------------------------------------- -------------
    A0734347                                 GPS                                 1
------------------ -------------------------------------------------------- -------------
    A0658055                         Linesman Phone U.S.                         1
------------------ -------------------------------------------------------- -------------

Maintenance Kit

---------------- -------------------------------------------------------- ------------
      PEC                              Description                           Qty.
---------------- -------------------------------------------------------- ------------
   NTEG24AA                  100MHz Generic Maintenance Kit                    1
---------------- -------------------------------------------------------- ------------
   NTEG21ND                      PSA Mains Adapter U.S.                        1
---------------- -------------------------------------------------------- ------------
   A0745625                      RMT Mains Adapter U.S.                        1
---------------- -------------------------------------------------------- ------------
   A0657248                               Modem                                1
---------------- -------------------------------------------------------- ------------
   A0655833                            Multimeter                              1
---------------- -------------------------------------------------------- ------------
   NTEG21PB                      Vehicle charging Cable                        1
---------------- -------------------------------------------------------- ------------
   A0743766                        RMT Docking Holster                         1
---------------- -------------------------------------------------------- ------------

</TABLE>

          Radio Element Manager (REM).

          The following configurations are representative of a typical
          installation. Specific installations may require variations on these
          definitions.

                                     Page 7
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

---------------- ------------------------------------------------------------------- --------------
      PEC                                   Description                                  Qty.
---------------- ------------------------------------------------------------------- --------------
<S>              <C>                                                                       <C>
   NTEG43AC      HP Unix Server                                                            1
---------------- ------------------------------------------------------------------- --------------
   NTEG41GD      REM Redundancy Upgrade Kit with Online Backup                             1
---------------- ------------------------------------------------------------------- --------------
   NTEG41EG      REM Processor Upgrade Kit                                                 1
---------------- ------------------------------------------------------------------- --------------
   A0784688      HP 3.5" hot swappable drive for HP D-CAL                                  1
---------------- ------------------------------------------------------------------- --------------
   NTEG43AA      HP Client Workstation                                                     1
---------------- ------------------------------------------------------------------- --------------
   NTEJ40BK      Radio Element Manager Software Platform 4.4.2                             1
---------------- ------------------------------------------------------------------- --------------
   NTEG42CB      Snmp Ethernet Network Mgt. Card Type 2                                    1
---------------- ------------------------------------------------------------------- --------------
   NTEG42BC      Network Hub 16 Slot Chassis,Fantray, Hipernmc  & Dual Psu                 1
---------------- ------------------------------------------------------------------- --------------
   NTEG42FB      60 Channel Netserver Ethernet L A N Card                                  1
---------------- ------------------------------------------------------------------- --------------
   NTEG42GM      Quad Modem Card With S/Ware Type 1                                        1
---------------- ------------------------------------------------------------------- --------------
   NTEG43AD      Unix Server annual support                                                1
---------------- ------------------------------------------------------------------- --------------
   NTEG43AB      Client Workstation annual support                                         1
---------------- ------------------------------------------------------------------- --------------
   NTEJ40GC      Remedy ARS Support                                                        1
---------------- ------------------------------------------------------------------- --------------
   NTEJ40JC      Oracle RDBMS Support                                                      1
---------------- ------------------------------------------------------------------- --------------
   A0743702      Openview SW Support                                                       1
---------------- ------------------------------------------------------------------- --------------
   NTEG42KA      Network Hub Annual SW Maintenance                                         1
---------------- ------------------------------------------------------------------- --------------
   A0743715      SW support CLEO                                                           1
---------------- ------------------------------------------------------------------- --------------
   A0740374      Power cord grounded North America                                         0
---------------- ------------------------------------------------------------------- --------------
   NTEJ40AE      REM Exceed SW                                                             1
---------------- ------------------------------------------------------------------- --------------
   NTEG41HB      10 BASE-T SWITCHING HUB-24R                                               1
---------------- ------------------------------------------------------------------- --------------

2.1.1.8           FWA Equipment Spares.

------------------- ---------------------------------------------------------------- --------------
       PEC                                    Description                              Qty. Per
------------------- ---------------------------------------------------------------- --------------
     NTED4575       Transceiver Processor Module                                           1
------------------- ---------------------------------------------------------------- --------------
     NTEG72AD       Transceiver Baseband Module Combining Diversity                        1
------------------- ---------------------------------------------------------------- --------------
     NTEG77EC       Transceiver Masthead Unit Kit                                          1
------------------- ---------------------------------------------------------------- --------------
     NTEG97PC       Antenna to TMU 4m Cable                                                1
------------------- ---------------------------------------------------------------- --------------
     NTEG76BA       ITS Fan Tray Assembly                                                  1
------------------- ---------------------------------------------------------------- --------------
     NTEG76CC       Secondary DC Breaker Rack Filtered                                     1
------------------- ---------------------------------------------------------------- --------------
     NTEG76FB       I.T.S Basestation Diversity Sub Rack                                   1
------------------- ---------------------------------------------------------------- --------------
     NTEG76GA       I.T.S U.K Maintenance Port Assembly                                    1
------------------- ---------------------------------------------------------------- --------------
     NTEG94QA       1.0M Internal ITS Cabinet                                              1
------------------- ---------------------------------------------------------------- --------------
     NTEG74BA       Over Voltage Protection Module                                         3
------------------- ---------------------------------------------------------------- --------------
     NTEG63AA       Transceiver Timer Module                                               1
------------------- ---------------------------------------------------------------- --------------
     NTEG73AA       Network Management Module                                              1
------------------- ---------------------------------------------------------------- --------------
     NTEG99CJ       TMU to Cabinet IF  1/2"Cable                                           500m
------------------- ---------------------------------------------------------------- --------------
     NTEG91BA       1/2" IF Cable Connector Kit                                              1
------------------- ---------------------------------------------------------------- --------------
     NTEG99CE       TMU to Cabinet Power Cable                                           500m
------------------- ---------------------------------------------------------------- --------------
     NTEG93AA       Power Cable Connector Kit                                              1
------------------- ---------------------------------------------------------------- --------------
     NTEG99CA       TMU to Cabinet Data Cable                                            500m
------------------- ---------------------------------------------------------------- --------------
     NTEG92AA       Data Cable Connector Kit                                               1
------------------- ---------------------------------------------------------------- --------------
     NTEG97ME       120 Degree Vertical Polarization Antenna                               1
------------------- ---------------------------------------------------------------- --------------

------------------- ---------------------------------------------------------------- --------------
       PEC                                    Description                              Qty. Per
------------------- ---------------------------------------------------------------- --------------
     NTEG97MF       120 Degree Horizontal Polarization Antenna                             1
------------------- ---------------------------------------------------------------- --------------
     NTEG97NE       60 Degree Vertical Polarization Antenna                                1
------------------- ---------------------------------------------------------------- --------------
     NTEG97NF       60 Degree Horizontal Polarization Antenna                              1
------------------- ---------------------------------------------------------------- --------------
     NTEG97NG       40 Degree Vertical Polarization Antenna                                1
------------------- ---------------------------------------------------------------- --------------
     NTEG97NH       40 Degree Horizontal Polarization Antenna                              1
------------------- ---------------------------------------------------------------- --------------

                                     Page 8
<PAGE>

Annex C - Description of Products
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

------------------- ---------------------------------------------------------------- --------------
     NTEG71HA       Transceiver Processor Module - Packet Data                             1
------------------- ---------------------------------------------------------------- --------------
     NTEG18DA       F5 RTU                                                                 1
------------------- ---------------------------------------------------------------- --------------
     NTEG18FA       RDA Kit                                                                1
------------------- ---------------------------------------------------------------- --------------
     NTEG12FA       RPCU                                                                   1
------------------- ---------------------------------------------------------------- --------------
     A0636762       RPCU Battery                                                           1
------------------- ---------------------------------------------------------------- --------------
     NTEG12CL       RPCU Power Cord                                                        1
------------------- ---------------------------------------------------------------- --------------
     NTEG12FB       RPCU Safety Booklet                                                    1
------------------- ---------------------------------------------------------------- --------------
     NTEG99JE       Dual Jacket Drop Cable                                               500m
------------------- ---------------------------------------------------------------- --------------
     NTEG99GR       Dual Jacket Drop Cable Connector                                      50
------------------- ---------------------------------------------------------------- --------------
     NTEG99CZ       Drop Cable Connector Pins                                             500
------------------- ---------------------------------------------------------------- --------------
     NTEG17DA       F2 RTU                                                                 1
------------------- ---------------------------------------------------------------- --------------
     NTEG19DE       F6 RTU                                                                 1
------------------- ---------------------------------------------------------------- --------------
     NTEG18DB       F5v2 RTU                                                               1
------------------- ---------------------------------------------------------------- --------------

</TABLE>

                                     Page 9

<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

                                     Annex D

                             Product Specifications

                                     Page 1
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

                                     Annex D

                             Product Specifications

                                PLA FWA Contract

1.   Scope

1.1  This section defines the essential performance characteristics of the
     Airspan Internet Fixed Wireless Access system (Internet FWA). The scope of
     the section is confined to the airside equipment that supports wireless
     transmission in the local loop, i.e. that part of the system from the
     Base-station network interface to the subscriber premises terminal
     interface (telephone socket), together with associated network management
     operations systems in the element management layer. The specifications for
     the switch, service gateway and other associated backhaul equipment are
     therefore specifically excluded from this section.

2.1  General description

2.1.1 Intentionally Left in Blank

2.1.1.1 Purpose of Internet FWA

     The Internet FWA system allows telecommunications operators to construct
     high quality telephone access networks between customers' premises and
     local exchanges. The system uses cellular point to multi-point wireless
     technology as a replacement for traditional copper-based local loops. A
     major advantage of FWA technology is that it allows operators to create new
     access networks quickly and with minimum capital investment.

     Each terminal in the Internet FWA system is capable of delivering PSTN
     circuit-switched services through two standard analogue telephone lines. In
     addition to the PSTN services, a packet-mode service may be used to deliver
     `always-on' connections between one or more Internet Service Providers
     (ISPs) and the computer equipment of subscribers.

     The Internet FWA system provides a frequency division duplex radio link to
     a subscriber transceiver system and operates in the 3.4 to 3.6 GHz band.
     The air interface utilizes time division multiplex on the downlink and time
     division multiple access on the uplink. The system comprises a network of
     Radio Base-stations (RBS) arranged on a cellular plan and these are
     connected to the PSTN or to the public Internet by a conventional back-haul
     network. Each base-station consists of one or more Integrated Transceiver
     Systems (ITSs).

2.1.2 Sub-systems

     The Internet FWA system contains two Network elements (NEs):

     o    Remote Service System (RSS)

     o    Radio Base Station (RBS)

                                     Page 2
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     The Internet FWA system contains three Operations systems (OSs):

     o    Radio Element Manager (REM)

     o    RSS Installation System (RIS)

     o    Field Engineering Terminal (FET)

     The Remote Service System (RSS)

     This system provides the subscriber with two independent analogue exchange
     lines and optionally a packet data service interface. The system consists
     of the RSS Terminal Unit (RTU), an RSS Power and Connection unit (RPCU) and
     an RSS Data Adapter (RDA) or Dongle Data Adaptor

     The RTU is mounted externally to the subscriber premises and contains a
     directional antenna, radio electronics and the two analogue line interfaces
     to carry PSTN services. The unit is powered from the RPCU indoor unit that
     plugs into the subscribers mains supply. A `drop cable' connects the RTU to
     the RPCU. The RPCU contains two sets of telephone sockets for connection to
     the subscriber's telephone equipment. In order to provide the optional
     packet data service, an RDA is supplied along with a special version of the
     RTU that contains the required data interface. The packet data service
     makes use of the HPNA standard to multiplex the data onto `line 0' of the
     telephone wires. The RDA connects to the subscriber's personal computer.

     The Integrated Transceiver System (ITS)

     One or more ITSs form the basis of the radio base-station and have been
     designed to serve an area of up to 5km radius in a typical urban
     environment and up to 20km in a rural environment.

     Voice band circuits from the ITS are connected to the switch by means of E1
     links running a V5.2 protocol. The packet data service is also routed over
     E1 links to the service gateway using L2TP (layer 2 tunnel protocol). The
     ITS can route any slot from the `circuit' E1s to any slot on the airside
     interface.

     In principle, an ITS can be provisioned as a 3, 6, 9, 12, 15 or 18 bearer
     configuration. RBS configurations specifically supported by installation
     and maintenance processes provide tri-sectored configurations with 18 or
     27(1) RF carriers, or a tri/hex-sectored RBS with 48 RF carriers. The
     27-carrier configurations require the use of two ITSs, and the 48-carrier
     configuration requires the use of three ITSs. The 48 bearer base-station is
     designed to provide coverage in two `RF layers', the first layer allowing a
     frequency re-use of one to be employed whilst a more conservative frequency
     plan is used in the other layer. Service to the individual RSS can be
     switched between these two layers depending on the interference environment
     experienced at that RSS.

     Radio Element Manager (REM)

----------

(1)  In the Axtel application, the 27 bearer base-stations generally provide
     only 26 bearers due to limited availability of RF channels.

                                     Page 3
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     The Radio Element Manger (REM) is a high performance, high capacity
     management system and is used to perform the Operation, Administration,
     Maintenance and Provisioning (OAM&P) procedures for the Internet FWA
     network. One REM can manage up to 200 ITSs and 150,000lines. The REM is
     primarily composed of a server platform, a client platform, additional user
     PCs and a Network Communications Server. Their respective purposes are
     described below. The REM supports a total of 4 expert and 4 standard user
     sessions.

     The REM server performs all provisioning related, object-related, event and
     alarm related processing, together with some of the GUI processing.
     Further, the server stores all object, event and alarm related data and
     state. As such, the majority of REM software executes on the server. The
     server also interfaces directly to a customer's High Level Management
     System (HLMS) for subscriber provisioning.

     The REM Client primarily acts as the host platform for the additional user
     GUI screens. It provides some of the GUI processing, and acts as a platform
     on which additional user scripts run.

     PCs running Exceed software connect with the REM client to allow access for
     additional users.

     The Network Communication Server (NCS) is an integrated terminal server and
     modem unit, which provides a connectivity solution from the REM to its
     network of ITSs. It also provides connectivity to the Remote Maintenance
     Terminal that is used during the subscriber hardware installation.

     Field engineering terminal (FET)

     The installing engineer will use this equipment during installation and
     commissioning of Base-station equipment. The FET application runs on a PC
     platform using a LINUX operating system. The FET is intended to connect
     locally into an ITS and allows control of the ITS as well as access to
     status information. Each FET requires a license key to enable operation and
     these are available from Airspan.

     RSS Installation system (RIS)

     The installing engineer will use this equipment to control the RSS during
     installation, to aid antenna alignment to the Base Station, to measure the
     performance of the RF link and to enable the connection. The primary
     component of the RIS is the Remote Maintenance Terminal (RMT).

2.1.3 External interfaces

     The physical layer external interfaces of the Internet FWA system are:

     o    Analogue line interface at the RSS

     o    Packet data interface at the RSS

     o    A.C. power interface at the RSS

     o    PCM (E1) interface at the RBS

     o    Packet data (E1) interface at the RBS

     o    D.C. power interface at the RBS

                                     Page 4
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     o    External alarm interface at the RBS

     o    Analogue line interface at the RIS. This is used to connect the RMT to
          the REM to download provisioning data.

     o    Analogue line interface at the REM

     o    Ethernet interface at the REM. This is used to connect the REM to
          higher-layer operations systems.

2.2  Physical characteristics

2.2.1 RSS transceiver unit (RTU)

2.2.1.1 Mechanical

     Length/width: 300 mm (octagonal, measured between flat faces) Depth: 90 mm
     excluding mounting brackets Mass: 2.5 kg.

2.2.1.2 Environmental

              Ambient temperature: -40 C to +50 C
              Solar radiation: <= 1120 W/m(2)
              Relative humidity: 5% to 100%

2.2.2 RSS power and connection unit (RPCU)

2.2.2.1 Mechanical

              Length: 210 mm
              Width: 135 mm
              Depth: 41 mm
              Mass: 2.0 kg including battery

2.2.2.2 Electrical

              Input voltage: 85 V to 270 V RMS
              Input frequency: 45 Hz to 70 Hz

2.2.2.3 Environmental

              Ambient temperature: -5 C to +45 C
              Relative humidity 5% to 100%

2.2.3 RSS data adaptor (RDA)

2.2.3.1 Mechanical

              Length: 165 mm
              Width: 125 mm
              Depth: 28 mm
              Mass: 250 g

                                     Page 5
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.2.3.2 Environmental

              Ambient temperature: -5C to +45C
              Relative humidity: 5% to 100%

2.2.4 Integrated transceiver system (ITS) indoor equipment

2.2.4.1 Mechanical

              Width: 600mm
              Height and depth (1 metre cabinet): 1000 mm x 300 mm

2.2.4.2 Environmental

              Ambient temperature: 0 C to +45 C
              Solar radiation: <= 700 W/m(2)
              Relative humidity: 5% to 95%

2.2.5 Integrated transceiver system (ITS) masthead equipment

2.2.5.1 Mechanical (TMU)

              Height: 600 mm
              Width: 450 mm
              Depth: 200 mm
              Mass: <= 30 kg

2.2.5.2 Environmental

              Ambient temperature: -40 C to +50 C
              Solar radiation: <= 1120 W/m(2)
              Relative humidity: 5% to 100%

2.3  Radio system

2.3.1 General description of the air interface

2.3.1.1 Physical layer

     The physical layer of the Internet FWA air interface uses digital time
     division multiplex/time division multiple access (TDM/TDMA) with a 10-slot
     frame structure. Uplink and downlink carriers are paired, and separated by
     a fixed duplex spacing of 99.84MHz. A TDM/TDMA channel (i.e. one time-slot
     one on one RF carrier) is known as a physical channel. In the maximum
     configuration, one ITS provides 18 pairs of RF carriers, and 180 physical
     channels.

     The uplink carriers are contained within the frequency band 3425 MHz to
     3450 MHz, and the downlink carriers are contained within the frequency band
     3525 MHz to 3550 MHz.

     The modulation scheme for both the uplink and downlink direction is pi/4
     shifted differential quadrature phase shift keying ((pi)/4DQPSK) with a
     nominal symbol rate of [ * ] symbols/s. The gross data rate is [ * ]
     kbits/s per carrier.

                                     Page 6
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     Reserved channels are used to allow contention access by terminals. These
     access channels are not available for carrying subscribers' voice or data
     traffic.

2.3.1.2 Channel plan

     The Internet FWA system operates over 78 RF channels, with a nominal
     channel spacing of 307.2 kHz. The lowest uplink channel (Ch. 2) has a
     nominal centre frequency of 3425.8944 MHz. The highest downlink channel
     (Ch. 79) has a nominal centre frequency of 3549.3888 MHz. The fixed duplex
     spacing is equivalent to 325 times the channel spacing.

2.3.1.3 MAC layer for PSTN traffic

     One physical channel is capable of carrying a single 32 kbit/s ADPCM
     circuit-switched connection, or one half of a 64 kbit/s PCM
     circuit-switched connection.

2.3.1.4 MAC layer for the Packet data service

     Physical channels can be allocated in groups of six to carry packet-mode
     traffic. One group of six physical channels is described as a packet
     channel.

2.3.2 RF performance of the ITS equipment

2.3.2.1 Maximum transmit power

     The maximum transmit power from the ITS is not less than 28 dBm for each
     carrier, measured at the antenna port of the TMU.

2.3.2.2 Transmitter implementation loss

     The transmitted signal from the ITS is a close approximation to an ideal
     (pi)/4DQPSK signal. The additional carrier to noise margin required to
     demodulate the practical transmitted signal, compared to an ideal signal is
     less than 1 dB.

2.3.2.3 Spectrum due to modulation

     The spectrum due to modulation at the output of the ITS is as follows:

     ---------------------------------- ----------------------------------------
     Channel                            Mean power (dBc)
     ---------------------------------- ----------------------------------------
     N                                  0 dBc (by definition)
     N +/- 1                            <= -24.5 dBc
     N +/- 2                            <= -40 dBc
     N +/- 3                            <= -50 dBc
     Any other channel                  <= -60 dBc or -60 dBm (whichever is
                                        greater)
     ---------------------------------- ----------------------------------------

                                     Page 7
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     The mean power is measured using an ideal receiver with
     root-raised-cosine filtering with transition factor ((alpha)) =
     0.4, and with the receiver tuned to the centre of the appropriate
     adjacent channel.

2.3.2.4 Minimum receiver sensitivity

     The receiver sensitivity for the ITS is not greater than -101.5 dBm,
     measured at the antenna port of the TMU, for a bit error ratio (BER) of
     10-3 before forward error correction. This measurement assumes an ideal
     transmitter.

2.3.2.5 Receiver selectivity

     The ITS receiver selectivity is specified in terms of the level of
     interfering signal consistent with a bit error ratio (BER) for the wanted
     signal of less than 10-(3) before FEC. The interfering signal is assumed to
     be from a signal source with the ideal characteristics of the Internet FWA
     radio system, centered on the applicable adjacent channel. The wanted
     signal is assumed to be from a similar ideal source and set at a level 3 dB
     greater than the level required for BER = 10-(3) in the absence of
     interference. The carrier to interference levels are as follows:

     ---------------------------------- ----------------------------------------
     Channel                            Carrier/Interference ratio for
                                        BER = 10-(3)
     ---------------------------------- ----------------------------------------
     N                                  <= 14.4 dB
     N +/- 1                            <= -15.5 dB
     N +/- 2                            <= -58.5 dB
     Any other channel                  <= -84.5 dBc
     ---------------------------------- ----------------------------------------

2.3.3 RF performance of the RSS equipment

2.3.3.1 Maximum transmit power

     The maximum transmit power from the RSS is not less than 44.5 dBm EIRP in
     RF channels 8 to 73 inclusive, and not less than 41.5 dBm EIRP in the
     remaining channels. This transmit power specification applies to the
     complete RTU including the antenna.

2.3.3.2 Transmitter implementation loss

     The transmitted signal from the RSS is a close approximation to an ideal
     (pi)/4DQPSK signal. The additional carrier to noise margin required to
     demodulate the practical transmitted signal, compared to an ideal signal is
     less than 1 dB.

                                     Page 8
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.3.3.3 Spectrum due to modulation

     The spectrum due to modulation at the output of the RSS is as follows:

     -------------------------------- -------------------------------
     Channel                          Mean power (dBc)
     -------------------------------- -------------------------------
     N                                [ * ]
     N +/- 1                          [ * ]
     N +/- 2                          [ * ]
     N +/- 3                          [ * ]
     Any other channel                [ * ]
     -------------------------------- -------------------------------

     The mean power is measured using an ideal receiver with root-raised-cosine
     filtering with transition factor ((alpha)) = 0.4, and with the receiver
     tuned to the centre of the appropriate adjacent channel. The measured power
     is averaged over duration of the time-slot containing the uplink
     transmission.

2.3.3.4 Minimum receiver sensitivity

     The receiver sensitivity for the RSS is not greater than [ * ] dBm in RF
     channels 8 to 73 inclusive, and not greater than [ * ] dBm in the remaining
     channels. The received signal is measured at the connector of the RTU
     antenna, for a bit error ratio (BER) of 10-3 before forward error
     correction. This measurement assumes an ideal transmitter.

2.3.3.5 Receiver selectivity

     The RSS receiver selectivity is specified in terms of the level of
     interfering signal consistent with a bit error ratio (BER) for the wanted
     signal of less than 10-(3) before FEC. The interfering signal is assumed to
     be from a signal source with the ideal characteristics of the Internet FWA
     radio system, centered on the applicable adjacent channel. The wanted
     signal is assumed to be from a similar ideal source and set at a level 3 dB
     greater than the level required for BER = 10-(3) in the absence of
     interference. The carrier to interference levels are as follows:

     ---------------------------------- ----------------------------------------
     Channel                            Carrier/Interference ratio for
                                        BER = 10-(3)
     ---------------------------------- ----------------------------------------
     N                                  [ * ]
     N +/- 1                            [ * ]
     N +/- 2                            [ * ]
     N +/- 3                            [ * ]
     N +/- 4                            [ * ]
     N +/- 5                            [ * ]
     Any other channel                  Blocking specification applies
     ---------------------------------- ----------------------------------------

                                     Page 9
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.3.3.6 RSS receiver dynamic range

     The dynamic range of the RSS receiver is from the limit of sensitivity to
     -20 dBm, measured at the antenna connector of the RTU. Over this dynamic
     range the BER of the received signal (measured before forward error
     correction) is not greater than 10-3.

2.3.3.7 RSS antenna gain

     The gain of the RSS antenna is between [ * ] dBi and [ * ] dBi at the peak
     of the response. The nominal beamwidth is 14 degrees (i.e. +/- 7 degrees).
     The rejection of cross-polar signals in the main antenna response is not
     less than 20 dB compared to a co-polar signal of identical level. The
     maximum level of side-lobe responses is [ * ] dBi, and this limit applies
     at azimuth angles from 22 degrees to 338 degrees with respect to the peak
     response.

2.3.4 Automatic power control

     To minimise interference in the network, the system incorporates automatic
     uplink RF power control whereby the ITS attempts to maintain a constant
     received signal strength (RSSI) of -80dBm for each active call or packet
     connection. If the RSSI strays from this target, the ITS will send a
     message to the appropriate RSS requesting an appropriate modification to
     the uplink RF power. The ITS normally integrates the RSSI over a 30s period
     before deciding whether an adjustment is required although there is a
     faster attack period at the start of a call or packet connection. At the
     end of a call or connection, the RSS calculates a new RF power that will be
     used to initiate the next call or connection on the same RF channel.

     To maintain an appropriate initial uplink RF power level during extended
     periods of call inactivity, network test calls are automatically scheduled
     to each RSS on each of its operating channels. Just as is the case for
     normal calls, the uplink RF power is adjusted appropriately at the end of a
     network test call. The scheduling period is normally set to 23 hours.

2.3.5 Combining diversity

     In ITS configurations with 2 or more TMUs per sector, the system is
     configured to execute two-path maximum ratio combining in the uplink. The
     implementation of this feature delivers the theoretical benefit of maximum
     ratio combining with less than 1 dB implementation loss.

     The TMU receiver is wideband and covers all of the uplink spectrum. This
     means that the IF signals from 2 TMUs in the same sector differ only by
     virtue of being received from

                                    Page 10
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     2 physically separated antennas. The two I.F signals are fed to separate
     arms of each receiver pair of every TBM in the sector. The TBM hosts three
     such receiver pairs where each pair is configured to an appropriate
     channel. The maximum ratio combining algorithm is executed independently on
     each receiver pair.

2.3.6 Dynamic carrier list management

     Dynamic carrier list management feature allows each RSS to modify the
     classification of individual RF carriers in response to periodic
     measurements of the received (downlink) signal. Each RSS notifies the ITS
     of changes in carrier classification, allowing the ITS to allocate channels
     with a priority reflecting the recent quality of downlink carriers. This
     feature has proven to be effective in combating the effects of static
     frequency-selective fading, and minimizing the impact of downlink radio
     interference from nearby RBSs in the same network. This feature is
     extremely valuable in networks where tri-sector and tri/hex-sector RBSs are
     built in adjacent or nearby cells.

2.4  Equipment configurations

2.4.1 RBS configurations

     RBS configurations that can be constructed using SR14 consist of one, two
     or three ITSs. The table below lists the configurations that can be used.

<TABLE>
<CAPTION>

              ------------------------------------------- ------------------ --------- ---------- ------------
              Base station configuration                  ITS sector
                                                          organisation       Circuit-  Packet-     Maximum
                                                                             switched  switched    number of
                                                                             E1s       E1s         E1
                                                                                                   connections
              ------------------------------------------- ------------------ --------- ---------- ------------
              <S>                                         <C>                <C>       <C>        <C>
              18-carrier, tri-sector, Type I              6.6.6              6         0, 2       8
              ------------------------------------------- ------------------ --------- ---------- ------------
              26-carrier, tri-sector, Type II             6.6.5              6         0, 2       11
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          3.3.3              3         0
              ------------------------------------------- ------------------ --------- ---------- ------------
              26-carrier, tri-sector, Type III            9.8                6         0, 2       13
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          9                  3         0, 2
              ------------------------------------------- ------------------ --------- ---------- ------------
              26-carrier, tri-sector, Type IV             9.9                6         0, 2       13
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          8                  3         0, 2
              ------------------------------------------- ------------------ --------- ---------- ------------
              27-carrier, tri-sector, Type I              6.6.6              6         0, 2       11
              ------------------------------------------- ------------------ --------- ---------- ------------

</TABLE>

                                    Page 11
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

              ------------------------------------------- ------------------ --------- ---------- ------------
              Base station configuration                  ITS sector
                                                          organisation       Circuit-  Packet-     Maximum
                                                                             switched  switched    number of
                                                                             E1s       E1s         E1
                                                                                                   connections
              ------------------------------------------- ------------------ --------- ---------- ------------
              <S>                                         <C>                <C>       <C>        <C>
                                                          3.3.3              3         0
              ------------------------------------------- ------------------ --------- ---------- ------------
              27-carrier, tri-sector, Type II             9.9                6         0, 2       13
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          9                  3         0, 2
              ------------------------------------------- ------------------ --------- ---------- ------------
              48-carrier, tri/hex-sector                  6.6.4              5         0, 2       21
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          6.6.4              5         0, 2
              ------------------------------------------- ------------------ --------- ---------- ------------
                                                          6.6.4              5         0, 2
              ------------------------------------------- ------------------ --------- ---------- ------------

</TABLE>

     The column `ITS sector organization' denotes the number of RF carriers than
     are enabled in each sector. No relationship is implied between the position
     of the elements of this list and the numbering of ITS sectors; thus a
     sector organization of 6.6.5 applies equally to configurations where the
     five-carrier sector is ITS sector 1, 2 or 3.

     The tri/hex configuration is described as 6.6.4. The six-carrier sectors
     are associated with the hex-sectored antennas, and the four-carrier sector
     is associated with the tri-sectored antennas. By default, the tri-sector is
     ITS sector 1.

     The following rules apply:

     o    Where PDS is required at an ITS, two TPM-PDs must be fitted.

     o    Each TPM requires one E1 connection between the ITS and the local
          exchange.

     o    Each TPM-PD requires one E1 connection between the ITS and the service
          gateway.

     Some of the base station configurations make use of more than one ITS. PDS
     can be enabled or disabled on a `per-ITS' basis, and so it is possible to
     create a multi-ITS configuration where only one or two of the ITSs has PDS
     enabled.

2.4.2 PSTN traffic capacity

     The PSTN traffic capacity of the supported RBS configurations is detailed
     in the table below. Note these figures apply where PDS is not provided; the
     PSTN capacity of an ITS with PDS is necessarily lower.

                                    Page 12
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

              ---------------------------------------------- -------------------------------------------------
              Base station configuration                     Reference capacity (E)
              ---------------------------------------------- -------------------------------------------------
                                                             Soft sector = 0%        Soft sector = 10%
              ---------------------------------------------- ----------------------- -------------------------
              <S>                                            <C>                     <C>
              18-carrier, tri-sector, Type I                 [ * ]                   [ * ]
              ---------------------------------------------- ----------------------- -------------------------
              26-carrier, tri-sector, Type III & IV          [ * ]                   [ * ]
              ---------------------------------------------- ----------------------- -------------------------
              27-carrier, tri-sector, Type II                [ * ]                   [ * ]
              ---------------------------------------------- ----------------------- -------------------------
              48-carrier, tri/hex-sector                     [ * ]                   [ * ]
              ---------------------------------------------- ----------------------- -------------------------

</TABLE>

     The reference capacity is defined as the capacity at 1% probability of
     blocking for long ADPCM calls, with the optimum distribution of traffic
     loading between ITS sectors.

     The soft-sector capacity assumes that 10% of the traffic loading arises
     from subscribers in the overlap regions between sectors, and that the
     soft-sectored load is distributed evenly between three overlap regions
     (3.3% of the total load in each overlap). In 26-carrier RBSs of type III
     and IV, and 27-carrier RBSs of type II, there is only one overlap region
     where a benefit is derived from soft sectoring; in these cases, the
     capacity gain is relatively small. In the tri/hex-sectored ITS,
     soft-sectoring is not enabled between hex-sectors.

     One ITS with V5.2 interface can support a maximum of 2048 PSTN lines, and a
     maximum of 2048 RSSs.

2.4.3 Packet data traffic capacity

2.4.3.1 Number of packet channels at an ITS

     Packet channels at an ITS can be configured subject to the following rules:

     o    Packet data can be supported by ITSs with sector arrangement 6.6.6,
          6.6.5, 8, 9, 9.8, 9.9, 6.6.4 (tri/hex)

     o    All packet channels consist of 6 physical channel pairs

     o    An ITS that supports PDS has two TPM-PDs

     o    One TPM-PD may support zero to four packet channels inclusive

     o    One ITS supports a maximum of 36 physical channels (i.e. six packet
          channels)

     o    The largest packet partition allowed in one sector is three packet
          channels

     o    In bi-sector or tri-sector ITSs, if the ITS provides PDS then each
          sector must have at least one packet channel

     o    In a tri-sector ITS, the sum of the number of packet channels in the
          smallest two packet partitions must not exceed four. This ensures that
          sectors will not be split across TPM-PDs.

                                    Page 13
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.4.3.2 Number of simultaneous PPP and MAC connections

     The packet data service supports a maximum of:

     o    700 packet data subscribers per ITS

     o    [ * ] simultaneous PPP connections per ITS

     o    [ * ] simultaneous active MAC connections per packet channel

     o    [ * ] simultaneous active MAC connections per TPM-PD

     o    [ * ] simultaneous active MAC connections per ITS

2.4.3.3 Traffic capacity of a packet channel

     Each packet channel (consisting of six physical channels) provides a shared
     channel with an aggregate capacity for users' packet data traffic of not
     less than [ * ] kbps in the downlink direction, and not less than 84 kbps
     in the uplink direction. PPP, TCP and IP headers applied at the users'
     computers are assumed to form part of the useful throughput.

2.4.3.4 Peak throughput for a single PDS user

     The peak throughput for a single user is approximately 96 kbps in the
     downlink direction (using the USB interface) and approximately 92 kbps in
     the downlink direction (using the RS-232 interface). The peak throughput
     for a single user is approximately 42 kbps in the uplink direction.

     Note that these are peak figures, and apply when the user has exclusive use
     of three physical channels. In normal operation, the packet channel
     capacity is shared between a number of users, and mean throughput figures
     for individual users will be lower than these peak values. The operator
     must ensure that sufficient packet channels are configured to offer
     reasonable quality of service to packet data subscribers.

2.4.3.5 Reduction in PSTN capacity

     The remaining PSTN traffic capacity at an RBS with packet data service is
     defined in the following table. These figures assume that 10% of the
     offered traffic is from soft-sectored terminals.

<TABLE>
<CAPTION>

              -------------------------------------- -------------------------------------------------
              Base station configuration             Reference capacity (E)
              -------------------------------------- -------------------------------------------------
                                                     One packet channel in   Two packet channels in
                                                     each sector             each sector
              -------------------------------------- ----------------------- -------------------------
              <S>                                    <C>                     <C>
              26-carrier, tri-sector, Type III & IV  194.0                   178.0
              -------------------------------------- ----------------------- -------------------------
              48-carrier, tri/hex-sector             327.0                   279.0
              -------------------------------------- ----------------------- -------------------------

</TABLE>

                                    Page 14
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

2.5  External interfaces

2.5.1 ITS to transmission system

     The interface between the ITS and the transmission system is defined by
     ITU-T G.703 11/2001, `Physical/electrical characteristics of hierarchical
     digital interfaces'. Only the interface at 2048 kbit/s is supported in
     Internet FWA.

     As an additional requirement, Internet FWA requires that the long-term
     frequency accuracy of the E1 signal from the transmission system is better
     than 10-(7) (0.1 ppm). Transmission equipment does not normally re-time
     digital traffic, and so this frequency accuracy is usually dependent on
     correct configuration of the local exchange (for PSTN connections) or the
     packet data network.

     Internet FWA complies with ITU-T G.823, `The control of jitter and wander
     within digital networks which are based on the 2048 kbit/s hierarchy'.

2.5.2 ITS to local exchange

     The framing structure of the signal between the ITS and the local exchange
     is defined by ITU-T G.704 10/1998, `Synchronous frame structures used at
     1544, 6312, 2048, 8448 and 44 736 kbit/s hierarchical levels', and ITU-T
     G.706 04/1991, `Frame alignment and cyclic redundancy check (CRC)
     procedures relating to basic frame structures defined in Recommendation
     G.704'.

     The voice coding for circuit-switched traffic complies with ITU-T G.711
     11/1988, `Pulse code modulation (PCM) of voice frequencies'.

     Signaling between the ITS and the local exchange uses the V5.2 protocol,
     defined in the ETSI V5.1 Specification ETS 300 324-1, V 1.2.2,
     `V-Interfaces at the digital local exchange (LE) - V5.1-Interface (based on
     2048 kbit/s) for the support of access network (AN)', and ETSI V5.2
     Specification ETS 300 347-1, V 2.1.2, `V-interfaces at the digital local
     exchange (LE) - V5.2 interface (based on 2048 kbit/s) for the support of
     access network (AN)'. Only requirements for PSTN services apply to Internet
     FWA.

2.5.3 ITS to packet data network

     Internet FWA requires that the E1 signal from the packet data network must
     comply with the framing structure defined in ITU-T G.704 (see above for a
     detailed reference). Time-slot zero contains a frame synchronization
     signal, and the remaining 31 time-slots are joined together to provide a
     connection with an aggregate capacity of 1984 kbit/s.

                                    Page 15
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     The layer-2 tunnel between the ITS and the packet data network uses a
     protocol stack consisting of the point-to-point protocol (PPP), Internet
     protocol (IP), user datagram protocol (UDP) and the layer-2 tunneling
     protocol (L2TP). These protocols are defined as follows:

     o    PPP: Internet engineering task force (IETF) STD 51, `The point to
          point protocol'

     o    IP: IETF RFC 791, `Internet protocol'

     o    UDP: IETF RFC 768, `User datagram protocol'

     o    L2TP: IETF RFC 2661, `Layer two tunnelling protocol (L2TP)'

2.5.4 RDA to PC

     The RDA provides a choice of two different serial data standards at the
     PC-RDA interface:

     o    Asynchronous serial interface (commonly known as RS-232) as defined in
          ANSI/TIA/EIA-232-F-1997, Interface Between Data Terminal Equipment and
          Data Circuit-Terminating Equipment Employing Serial Binary Data
          Interchange, and

     o    Universal Serial Bus (USB), using the `full-speed' option, as defined
          in Universal Serial Bus specification, Rev. 1.1 and USB class
          definitions for communications devices, Rev. 1.0.

2.5.5 Shortly after the introduction of the New F6 RSS unit the RDA will be
     replaced with a dongle that will provide the same functionality as the
     existing RDA unit.

2.6. Additional Specifications

2.6.1 In addition to the Product's Specifications set forth in this Annex D, the
     Parties agree to include as part of this Annex D the Product's
     Specifications that will be set forth in the Compact Discs to be named as:
     (i) Internet Fixed Wireless Access, MR 14.0.3 "Customer Documentation
     Suite" and (ii) Internet Fixed Wireless Access, Maintenance Release MR
     14.0.3 System Line Up that will be delivered with MR14.03 in February 2003.

2.6.2 New RSS Unit

Summary of the RSS changes

The new Proximity RSS Unit shall have the same form, function and fit of both of
the current RSS Equipment jointly (the F2 and F5 based RSS equipment), pursuant
the specifications provided to Axtel by Airspan and Nortel Networks (as the
former manufacturer). The New RSS Unit will be known as the F6. The changes are
summarised as follows:

     o    Airspan shall supply a single variant of the RSS. In particular, all
          RTUs will contain a packet data interface suitable for interconnection
          with the existing RDA.

                                    Page 16
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

     o    The 48 volt indoor power supply, known as the RPCU, shall be revised
          to remove unused functionality.

     o    The RTU environmental specification shall be changed so that the low
          operating temperature limit will be -20 C rather than -40 C.

     o    The New RSS will incorporate the original Drop Cable Connector (NTEG
          99GR)

Single variant RSS

In accordance with the Amendment Agreement No2, all New RSS Units will be
supplied with a packet data interface, i.e. the RSS will be `packet data ready'.
This will potentially enable Axtel to supply existing subscribers requesting the
packet data service with an RDA or equivalent device without the need for
replacing the RTU.

48 volt indoor power supply

It had been agreed that a revised solution for the indoor power supply will be
supplied. A number of solutions are possible, but relative to the current RPCU,
the following specification changes are included:

     o    Eliminate the mains buzzer functionality, which is understood to be
          disabled by the Axtel installation teams.

     o    Remove the 2 secondary RJ11 sockets: It is understood that a remote
          RJ11 Box is the preferred Axtel method of installation.

     o    Restrict the mains input voltage to Mexican requirements:

     The current RPCU is designed for the global marketplace and operates with
     input voltages from 85volts to 270volts ac. The power supply will be
     redesigned specifically to suit Mexican requirements (88volts to 132 volts
     ac). Output power ratings will remain unchanged.

     o    The RPCU plastics material will remain essentially unchanged, but will
          incorporate additional spacer/wider lugs and the blanking of the fins
          to reduce the likelihood of Water and Bug.

Should there be any changes in mechanical form of the power supply, these will
be agreed with Axtel in due course.

Change to RTU lower operating temperature limit

The RTU environmental specification will be changed so that the low operating
temperature limit will be -20 C rather than -40 C. This is believed to be
acceptable for deployments in Mexico.

Single outer sheath drop cable

For the avoidance of doubt there will be no change to the existing
specification, which already states the dual outer sheath drop cable.

F6 support in SR14.2

The F6 RTU will require a new software image and support for this will be
provided in the SR14.2 system release.

                                    Page 17
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex D -Product Specifications
Purchase and License Agreement for FWA Equipment-December 2004

--------------------------------------------------------------------------------

Others

A separate label will be added to the RTU to distinguish between and F6 from
other RTU's

                                    Page 18
<PAGE>

Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

                                     Annex E

                               FWA Order Procedure

                                     Page 1
<PAGE>

Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

ORDER PROCEDURE

1 Purchase Order Procedure

Airspan and Axtel agree that a Purchase Order must be issued and delivered in
order to proceed with the supply of any Product or Service for the purposes of
this Agreement.

The Purchase Order will be issued either according to prices established in
Annex F- FWA Prices - of this Agreement or according to a specific quotation
provided by Airspan for those cases in which the prices are not stated in such
Annex. Airspan is not obliged to quote or deliver any service or material not
included in Annex C - Description of Products.

1.1 Request for Quotation

Applicable for Products and Services not included in Annex C - Description of
Products. Axtel will request the quotation in writing in a mutually agreed
format and containing the following minimum information:

a)   Supplier Part or Service Number if available

b)   Manufacturer Part Number if different to supplier

c)   Part or Service Description

d)   Quantity

e)   Unit of Measure

f)   Requested Deliver Time or Date

g)   Delivery Location when applicable

h)   Part Number (Serial Profile applicable)

1.2 Delivery of quotation by Supplier

Airspan will provide the quotation in accordance with the terms set forth below.

The quotation will be submitted to Axtel's Purchasing Department and
Strategic Negotiations Department in writing within a reasonable period of time,
depending on the complexity of the quote referred, duly signed by Supplier Sales
Representative and containing the following information:

a)   Supplier Quotation Number

b)   Supplier Part or Service Number

c)   Manufacturer Part Number if different to Supplier's

d)   Part or Service Description

e)   Quantities

f)   Unit of Measure

                                     Page 2
<PAGE>

Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

g)   Part Number (Serial Profile applicable)

h)   Unit Price as defined in Annex F of the Agreement (Price of Unit of a part
     number may be a part of a package or the price when Axtel want to buy
     separate)

i)   Extended Price

j)   Warranty Terms and Conditions if applicable

k)   Payment Terms

l)   Expiration Date

m)   Delivery Time per Item

n)   Delivery Site or Delivery Location when applicable

o)   Agreement Name

1.3 Submission of Purchase Orders - General

Axtel will submit the Purchase Order in accordance with the terms set forth
below

Purchase Orders shall be submitted in a mutually agreed format or media to the
Airspan Commercial Representative, duly signed by an authorized Axtel
representative and containing the following minimum information:

a)   Purchase Order Number

b)   Purchase Order Date

c)   Supplier Quotation Number if applicable

d)   Requested Delivery Date per each item

e)   Axtel Part Number

f)   Supplier Part or Service Number as per Annex C or quotation

g)   Manufacturer Part Number if different to Supplier when applicable

h)   Part or Service Description

i)   Quantities per each item

j)   Unit of Measure

k)   Unit Price as defined in Annex F of the Agreement

l)   Extended Price

m)   Billing Instructions

n)   Payment Terms as per signed Agreement

o)   Shipping Instructions and Delivery Location

p)   Agreement Name

q)   Wording expressing "Purchase Order 100% binding and non-cancelable"

r)   Wording referencing Terms and Conditions to Agreement signed

s)   Special wording when applicable

Airspan shall acknowledge receipt in writing of the Purchase Order within five
(5) business days after received.

Airspan shall accept such Purchase Order in accordance with the terms set forth
in Section 2 of the Agreement.

                                     Page 3
<PAGE>

Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

1.4 Address and Times for Submission of Purchase Orders

Purchase Orders shall be submitted to Airspan Commercial Representative at the
following address:

Guy Insley
Airspan Networks Inc
777 Yamato Road,
Suite 105
Boca Raton
Fl, 33431

In the event of a change of the address, Airspan will advise Axtel thereof in
writing.

2 FWA Product Delivery Times

Product Delivery times are indicated in Annex J .

2.1 Product Delivery

Within three business days after Final Ship Date:

a)   Axtel's freight representative shall collect the Products at the Airspan
     factory or designated warehouse, as applicable and shall sign the
     corresponding Freight Bill which will constitute the sole Proof of Delivery
     (the "Product Delivery").

b)   If, for whatever reason, the customer's freight representative does not
     collect the Products within the aforementioned period of three business
     days, Delivery of the products shall be deemed 100% complete (the "Product
     Delivery"). In such case, Proof of Delivery shall be the unsigned Freight
     Bill.

3  Intentionally left in blank

4 Invoicing

4.1 Product Invoicing

Airspan will submit the invoice in accordance with the terms set forth in
Section 5 of the Agreement.

                                     Page 4
<PAGE>

Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

Within the next five (5) business days after the delivery by Axtel to Airspan of
a Purchase Order which is in compliance with Section 2 of this Contract, Airspan
shall deliver to Axtel an invoice for one hundred percent (100%) of the purchase
price of such Order.

Airspan' original invoices will be delivered to Axtel's Accounts Payable
department with a copy to the Axtel Purchasing representative. Axtel will
immediately acknowledge receipt of invoices by stamping a copy as "received" and
returning it to Airspan.

4.2 Services Invoicing

Airspan shall invoice Axtel for Services in accordance with section 5 of the
Agreement.

4.3 Invoicing General

All invoices shall be issued containing the following minimum information and
requirements:

a)            Official name and address of Axtel as follows:
              Axtel S.A. de C.V.
              Blvd. Diaz Ordaz Km. 3.33 L-1
              Col. Unidad San Pedro San Pedro
              Garza Garcia, N.L.
              Mexico 66215
              RFC: AXT-940727-FP8

b)   Purchase Order Number (s)

c)   Invoice Number

d)   Invoice date

e)   Supplier Quotation Number if applicable

f)   Supplier Part or Service Number if applicable

g)   Axtel part Number.

h)   Manufacturer Part Number if different to Supplier when applicable

i)   Part or Service Description

j)   Quantities per each item

k)   Unit of Measure

l)   Unit Price for Equipment or Services.

m)   Extended Price for Equipment or Services.

n)   Payment Terms

o)   Delivery Location for Services when applicable

p)   Agreement Name

q)   Supplier Name and Address

r)   Service Receipt Acceptance Number or Good Receipt Acceptance Number as
     applicable.

5 Equipment Shipping Instructions, Shipping Documents and Goods Receipt.

All shipments shall be consigned according to the Purchase Order or Change
Order.

                                     Page 5
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Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

Airspan shall submit a copy of the following documentation via fax to Axtel's
Purchasing Department immediately after Delivery.

     o    Proof of Delivery

     o    Packing List.

     o    Packing List including the material part number that Axtel and Aisrpan
          manage with a serial number.

     o    Certificate of Origin (NAFTA Certificate, if it applies)

     o    Copy of Original Invoice

For purposes of the Agreement, the Delivery Date of the products shall be deemed
the date on which Airspan delivers via fax to Axtel the documents mentioned
above.

A copy of the following documentation should be attached to the shipment:

     o    Copy of Original Invoice

     o    Packing List with product serial number when applicable

     o    Certificate of Origin (NAFTA Certificate, if it applies)

During the following ten (10) days after Delivery Date, Axtel shall issue a
Goods Receipt document that shall contain at least the following information:

     o    Document Date

     o    Purchase Order Number (s)

     o    Invoice Number(s)

     o    Delivery Date

     o    Acceptance Note and Goods Receipt Number

     o    Refusal Note describing the reasons in writing (if applicable) in
          accordance with the terms of the Agreement

If after ten (10) days from Delivery Date, Axtel has not delivered to Airspan
such Goods Receipt document, it will be deemed that Axtel has accepted the
shipment and it will be deemed that there are no Non-Compliant products in such
shipment.

Partial deliveries shall only be allowed such as stated in Annex J and section
5.4 of the Agreement.

6 Services Acceptance

In the event of Services, during the following ten (10) Business Days after
completion of the Services by Supplier, Axtel shall issue a Service Acceptance
Notification to Supplier that should contain at least the following information:

     o    Document Date

     o    Purchase Order Number

     o    Date of Service Completion

                                     Page 6
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Annex E
Purchase and License Agreement for FWA Equipment  (Dec 2004)

--------------------------------------------------------------------------------

     o    Acceptance Note and Service Receipt Acceptance Number

     o    Refusal Note describing the reasons in writing (if applicable)

If after ten (10) Business Days, Axtel has not delivered to Airspan such Service
Acceptance Notification, it will be deemed that Axtel has accepted the provided
Services and Airspan will invoice Axtel.

                                     Page 7
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     Annex F

                                   FWA Prices

                                     Page 1
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     Annex F
                                   FWA Prices

1.0      Document Scope.

This document details the definition and pricing of the FWA equipment to be
supplied by Airspan to AXtel as per the "FWA Supply Agreement". All prices are
in US dollars. CIP for RSS & RIS are quoted as @ Airspan American consolidation
warehouse for Mexico (currently Texas, USA). Ex-works terms for RBS & FET are
quoted @ Airspan RBS manufacturing site (currently Dumfermline Scotland) and
Ex-works terms for REM are quoted @ Airspan REM integration site (currently
Dumfermline Scotland).

2.0      Customer Premise Equipment Kits.

2.1      Customer Premise Equipment Kits (CPE).

An F5 RSS Kit is defined as follows for Orders for Delivery from April 1st 2005
(RDA Kit excluded):

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- -------------------
        PEC                            Description                     Qty.   Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- -------------------
<S>                  <C>                                             <C>
NTEG18DA             F5 RTU                                           1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ ------- -------------------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ ------- -------------------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ ------- -------------------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ ------- -------------------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ ------- -------------------
                                                                                    $[ * ]
----------------------------------------------------------------------------- -------------------

</TABLE>

Prior to Orders for Delivery from April 1st 2005, an F5 Kit includes the RDA at
a price of $[ * ]

An F5v2 Analog RSS Kit is defined as follows, with pricing effective for Orders
for Delivery from 1st April 2005:

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- -------------------
        PEC                            Description                     Qty.   Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- -------------------
<S>                  <C>                                              <C>     <C>
NTEG18DB             F5v2 Analog RTU                                  1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ ------- -------------------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ ------- -------------------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ ------- -------------------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ ------- -------------------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ ------- -------------------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
-------------------- ------------------------------------------------ ------- -------------------
                                                                                    $[ * ]
----------------------------------------------------------------------------- -------------------

</TABLE>

                                     Page 2
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

Prior to Orders for Delivery from April 1st 2005 F5v2 Analog RSS Kit price is $
[ * ]

An F6 Single Model RSS Kit is defined as follows pricing effective Orders for
Delivery from 1st April 2005

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- --------------------------
        PEC                            Description                     Qty.      Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- --------------------------
<S>                  <C>                                              <C>     <C>
NTEG19DE             F6 RTU                                           1
-------------------- ------------------------------------------------ ------- --------------------------
NTEG12FA             RPCU                                             1
-------------------- ------------------------------------------------ ------- --------------------------
A0636762             RPCU Battery                                     1
-------------------- ------------------------------------------------ ------- --------------------------
NTEG12CL             RPCU Power Cord                                  1
-------------------- ------------------------------------------------ ------- --------------------------
NTEG12FB             RPCU Safety Booklet                              1
-------------------- ------------------------------------------------ ------- --------------------------
NTEG99JE             Drop Cable (500m)                                0.04
-------------------- ------------------------------------------------ ------- --------------------------
NTEG99GR             Drop Cable Connector (50)                        0.02
-------------------- ------------------------------------------------ ------- --------------------------
NTEG99CZ             Drop Cable Connector Pins (500)                  0.02
----------------------------------------------------------------------------- --------------------------
                                                                                       $[ * ]
----------------------------------------------------------------------------- --------------------------

</TABLE>

An RDA Kit for Orders for Delivery from 1st April 2005 is defined as follows:

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- --------------------------
        PEC                            Description                     Qty.      Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- --------------------------
<S>                  <C>                                                <C>   <C>
NTEG18FA             RDA or Dongle                                      1
-------------------- ------------------------------------------------ ------- --------------------------

-------------------- ------------------------------------------------ ------- --------------------------

-------------------- ------------------------------------------------ ------- --------------------------
                     Right to use fee of PD functionality included
----------------------------------------------------------------------------- --------------------------
                                                                                       $[ * ]
----------------------------------------------------------------------------- --------------------------

</TABLE>

2.2      Installation Brackets for any type of RSS.

Compact Mounting Bracket

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------ ------- --------------------------
        PEC                            Description                     Qty.      Ext. Price CIP USD
-------------------- ------------------------------------------------ ------- --------------------------
<S>                           <C>                                       <C>      <C>
     NTEG19AJ                 Compact Mounting Bracket (10)             1
-------------------- ------------------------------------------------ -------
     NTEG99DC                  Mounting Coach Screw (200)             0.015
-------------------- ------------------------------------------------ -------
     NTEG99DD                        Washer M8 (200)                  0.015
-------------------- ------------------------------------------------ -------
     NTEG99DE                       Frame Fixing(200)                 0.015
-------------------- ------------------------------------------------ ------- --------------------------
                                                                                       $[ * ]
-------------------- ------------------------------------------------ ------- --------------------------

</TABLE>

                                     Page 3
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

3.0  Radio Basestation Kits

     Discrete Radio Basestation Configurations.

The following configurations and the associated pricing for Orders for Delivery
after December 31st 2004 are representative of a typical installation of RBS
Kits. Specific installations may require variations on these definitions for
which the vendor will provide revised pricing quotations at that time.

<TABLE>
<CAPTION>

------------------- ------------------------------------------------------- --------------- --------------
       PEC                               Description                           18b RBS         27b RBS
------------------- ------------------------------------------------------- --------------- --------------
<S>                 <C>                                                           <C>             <C>
     NTED4575       Transceiver Processor Module                                  5               7
------------------- ------------------------------------------------------- --------------- --------------
     NTEG72AD       Transceiver Baseband Module Combining Diversity               5               7
------------------- ------------------------------------------------------- --------------- --------------
     NTEG77EC       Transceiver Masthead Unit Kit                                 6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG97PC       Antenna to TMU 4m Cable                                       6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG94BD       1M Pre-Fit Cabinet                                            1               2
------------------- ------------------------------------------------------- --------------- --------------
     NTEG63AA       Transceiver Timer Module                                      0               0
------------------- ------------------------------------------------------- --------------- --------------
     NTEG73AA       Network Management Module                                     0               0
------------------- ------------------------------------------------------- --------------- --------------
     NTEG99CJ       TMU to Cabinet IF 1/2" cable  (500m)                         0.6             0.9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG91BA       1/2" IF Cable Connector Kit                                   6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG99CE       TMU to Cabinet Power cable (500m)                            0.6             0.9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG93AA       Power Cable Connector Kit                                     6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG99CA       TMU to Cabinet Data Cable (500m)                             0.6             0.9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG92AA       Data Cable Connector Kit                                      6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG97NE       60 Degree Vertical Polarization Antenna                       0               0
------------------- ------------------------------------------------------- --------------- --------------
     NTEG97ME       120 Degree Vertical Polarization Antenna                      6               9
------------------- ------------------------------------------------------- --------------- --------------
     NTEG94PA       120 0hms primary E1 Cable                                     1               2
--------------------------------------------------------------------------- --------------- --------------
Ex-Works Price  USD                                                             $[ * ]         $[ * ]
--------------------------------------------------------------------------- --------------- --------------

</TABLE>

For clarity, NTEG94BD (1M Pre-Fit Cabinet) and NTEG77EC (Transceiver Masthead
Unit Kit) are defined as follows:

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------------------
                           NTEG94BD 1M Pre-Fit Cabinet
------------------- ------------------------------------------------------------------------- --------
       PEC                                        Description                                  Qty.
------------------- ------------------------------------------------------------------------- --------
<S>                 <C>                                                                          <C>
NTED4575            TRANSCEIVER PROCESSOR MODULE                                                 1
------------------- ------------------------------------------------------------------------- --------
NTEG63AA            TRANSCEIVER TIMER MODULE                                                     2
------------------- ------------------------------------------------------------------------- --------
NTEG72AD            TRANSCEIVER BASEBAND MODULE COMBINING DIVERSITY                              1
------------------- ------------------------------------------------------------------------- --------
NTEG73AA            NETWORK MANAGEMENT MODULE                                                    1
------------------- ------------------------------------------------------------------------- --------
NTEG7762            CABINET CABLE SET TYPE 2                                                     1
------------------- ------------------------------------------------------------------------- --------
NTEG74BA            OVER-VOLTAGE PROTECTION MODULE                                               3
------------------- ------------------------------------------------------------------------- --------
NTEG76BA            ITS FAN TRAY ASSEMBLY                                                        1
------------------- ------------------------------------------------------------------------- --------
NTEG76CC            SECONDARY DC BREAKER RACK FILTERED                                           1
------------------- ------------------------------------------------------------------------- --------
NTEG76FB            I.T.S Basestation DIVERSITY SUB RACK                                         1
------------------- ------------------------------------------------------------------------- --------
NTEG76GA            I.T.S U.K MAINTENANCE PORT ASSEMBLY                                          1
------------------- ------------------------------------------------------------------------- --------
NTEG94AN            1.0M CABINET FLOOR MOUNTING PLINTH                                           1
------------------- ------------------------------------------------------------------------- --------
NTEG94FA            ALARM CONNECTOR BLOCK                                                        1
------------------- ------------------------------------------------------------------------- --------
NTEG94QA            1.0M INTERNAL I.T.S. CABINET                                                 1
------------------- ------------------------------------------------------------------------- --------

                                     Page 4
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
                     NTEG77EC Transceiver Masthead Unit Kit
------------------------------------------------------------------------------------------------------
       PEC                                       Description                                  Qty.
------------------- ----------------------------------------------------------------------- ----------
NTEG77CA            T.M.U./T.A.S. GROUND BOND KIT                                               1
------------------- ----------------------------------------------------------------------- ----------
NTEG77DA            SUN SHIELD ASSEMBLY                                                         1
------------------- ----------------------------------------------------------------------- ----------
NTEG77GB            T.M.U. ASSY BF-BAND (100MHz)                                                1
------------------- ----------------------------------------------------------------------- ----------
P0821020            U BOLT 61 C R S                                                             2
------------------- ----------------------------------------------------------------------- ----------
P0821021            U BOLT 126 C R S                                                            2
------------------- ----------------------------------------------------------------------- ----------
P0834843            T.M.U. MOUNTING BRACKET V3                                                  1
------------------- ----------------------------------------------------------------------- ----------

</TABLE>

3.1  PDS Upgrade Configurations.

     The following configurations and the associated pricing are representative

<TABLE>
<CAPTION>

------------------- -------------------------------------------------- --------------------
       PEC                             Description                         PDS Upgrade
------------------- -------------------------------------------------- --------------------
<S>                 <C>                                                         <C>
     NTEG71HA       Transceiver processor Module - Packet Data                  2
------------------- -------------------------------------------------- --------------------
       N/A          Packet Data Software Activation Fee                         1
---------------------------------------------------------------------- --------------------
Ex-Works Price USD                                                           $[ * ]
---------------------------------------------------------------------- --------------------

</TABLE>

4.0  FWA Software

<TABLE>
<CAPTION>

------------ -------------------------------------------------------- ------------ ---------------------
    PEC                            Description                           Qty.       Ex-Works Price USD
------------ -------------------------------------------------------- ------------ ---------------------
<S>           <C>                                                          <C>         <C>
    N/A       RMT Data Software Activation Fee                             1           To be Quoted
------------ -------------------------------------------------------- ------------ ---------------------

</TABLE>

5.0      FWA OA&M Equipment.

5.1      Field Engineering Terminal (FET).

Choose one of the following.

<TABLE>
<CAPTION>

------------------ ------------------------------------------------------ ---------- -------------------
       PEC                              Description                         Qty.       Ex-Works Price
                                                                                            USD
------------------ ------------------------------------------------------ ---------- -------------------
<S>                <C>                                                        <C>          <C>
    NTEG30AN       FET System Complete (LINUX)on  Panasonic CF27              1            $[ * ]
------------------ ------------------------------------------------------ ---------- -------------------
    NTEG30AF       LINUX FET Software Application Kit for Panasonic CF27      1            $[ * ]
------------------ ------------------------------------------------------ ---------- -------------------

</TABLE>

5.2      Residential Installation System (RIS).
         Survey & Maintenance Kit

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------------ -----------
        PEC                               Description                          Qty.
-------------------- ------------------------------------------------------ -----------
<S>                               <C>                                           <C>
     NTEG24BF                     100 MHz Generic Survey Kit                    1
-------------------- ------------------------------------------------------ -----------

                                     Page 5
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

-------------------- ------------------------------------------------------ -----------
    NTEG10DCBV              RSS Installation Sub-Set Documentation              1
-------------------- ------------------------------------------------------ -----------
     P0872025                             Large Belt                            1
-------------------- ------------------------------------------------------ -----------
     NTEG24BE            RTU SAK/Handle Pole Kit (5.5m extension kit)           1
-------------------- ------------------------------------------------------ -----------
     NTEG22EB                       RTU SAK/Handle Assembly                     1
-------------------- ------------------------------------------------------ -----------
     A0734347                                 GPS                               1
-------------------- ------------------------------------------------------ -----------
     A0658055                         Linesman Phone U.S.                       1
-------------------- ------------------------------------------------------ -----------
     NTEG24AA                   100MHz Generic Maintenance Kit                  1
-------------------- ------------------------------------------------------ -----------
     NTEG21ND                       PSA Mains Adapter U.S.                      1
-------------------- ------------------------------------------------------ -----------
     A0745625                       RMT Mains Adapter U.S.                      1
-------------------- ------------------------------------------------------ -----------
     A0657248                                Modem                              1
-------------------- ------------------------------------------------------ -----------
     A0655833                             Multimeter                            1
-------------------- ------------------------------------------------------ -----------
     NTEG21PB                       Vehicle charging Cable                      1
-------------------- ------------------------------------------------------ -----------
     A0743766                         RMT Docking Holster                       1
-------------------- ------------------------------------------------------ -----------
CIP                                                                           $[ * ]
Price USD
-------------------- ------------------------------------------------------ -----------

</TABLE>

5.3  Radio Element Manager (REM).

The following configuration is based on the original Model 3 REM but includes
additional functionality upgrades that were introduced during the previous
contract.

<TABLE>
<CAPTION>

-------------------- ----------------------------------------------------------------- -----------------
                                               Description                                   Qty.
-------------------- ----------------------------------------------------------------- -----------------
<S>                  <C>                                                                      <C>
     NTEG43AC        HP Unix Server                                                           1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG41GD        HASS Functionality                                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG41GE        Dual Processor Functionality                                             1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AA        HP Client Workstation                                                    1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40BN        Radio Element Manager Software Platform                                  1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42BC        Network Hub 16 Slot Chassis,Fantray,Hipernmc, Dual Psu                   1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42FB        HyperARC                                                                 1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42GM        Quad Modem Card With S/Ware Type 1                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AD        Unix Server annual support                                               1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG43AB        Client Workstation annual support                                        1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40GC        Remedy ARS Support                                                       1
-------------------- ----------------------------------------------------------------- -----------------
     NTEJ40JC        Oracle RDBMS Support                                                     1
-------------------- ----------------------------------------------------------------- -----------------
     A0743702        Openview SW Support                                                      1
-------------------- ----------------------------------------------------------------- -----------------
     NTEG42KA        Network Hub Annual SW Maintenance                                        1
-------------------- ----------------------------------------------------------------- -----------------
     A0743715        SW support CLEO                                                          1
-------------------- ----------------------------------------------------------------- -----------------
Ex-Works Price USD                                                                          $[ * ]
-------------------- ----------------------------------------------------------------- -----------------

</TABLE>

6.0      FWA Equipment Spares.

<TABLE>
<CAPTION>

-------------------- ------------------------------------------------------ ---------- ---------------
        PEC                               Description                       Qty. Per      Ex-Works
                                                                                         Price USD
-------------------- ------------------------------------------------------ ---------- ---------------
<S>                  <C>                                                        <C>        <C>
     NTED4575        Transceiver Processor Module                               1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG72AD        Transceiver Baseband Module Combining Diversity            1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG77EC        Transceiver Masthead Unit Kit                              1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------

                                     Page 6
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

-------------------- ------------------------------------------------------ -----------
     NTEG97PC        Antenna to TMU 4m Cable                                    1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG76BA        I.T.S. Fan Tray Assembly                                   1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG76CC        Secondary DC Breaker Rack Filtered                         1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG76FB        I.T.S Basestation Diversity Sub Rack                       1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG76GA        I.T.S U.K. Maintenance Port Assembly                       1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG94QA        1.0M Internal ITS Cabinet                                  1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG74BA        Over Voltage Protection Module                             1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG63AA        Transceiver Timer Module                                   1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG73AA        Network Management Module                                  1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG99CJ        TMU to Cabinet IF 1/2" Cable                               500m         $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG91BA         1/2" IF Cable Connector Kit                                 1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG99CE        TMU to Cabinet Power Cable                               500m         $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG93AA        Power Cable Connector Kit                                  1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG99CA        TMU to Cabinet Data Cable                                500m         $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG92AA        Data Cable Connector Kit                                   1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97ME        120 Degree Vertical Polarization Antenna                   1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97MF        120 Degree Horizontal Polarization Antenna                 1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NE        60 Degree Vertical Polarization Antenna                    1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NF        60 Degree Horizontal Polarization Antenna                  1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NG        40 Degree Vertical Polarization Antenna (For orders        1          $[ * ]
                     of less than 120 units)
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NH        40 Degree Horizontal Polarization Antenna (For             1          $[ * ]
                     orders of less than 120 units)
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NG        40 Degree Vertical Polarization Antenna (For orders        1          $[ * ]
                     of more than 120 units)
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG97NH        40 Degree Horizontal Polarization Antenna (For             1          $[ * ]
                     orders of more than 120 units)
-------------------- ------------------------------------------------------ ---------- ---------------
     NTEG71HA        Transceiver Processor Module - Packet Data                 1          $[ * ]
-------------------- ------------------------------------------------------ ---------- ---------------

------------------ -------------------------------------------------------- ---------- -----------------
       PEC                               Description                        Qty. Per    Ext. Price CIP
                                                                                             USD
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG18DA       F5 RTU                                                       1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG19DE       F6 RTU                                                       1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG18FA       RDA Kit or Dongle                                            1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG12FA       RPCU                                                         1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    A0636762       RPCU Battery                                                 1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG12CL       RPCU Power Cord                                              1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG12FB       RPCU Safety Booklet                                          1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG99JE       Dual Jacket Drop Cable                                     500m          $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------

------------------ -------------------------------------------------------- ---------- -----------------
       PEC                               Description                        Qty. Per    Ext. Price CIP
                                                                                             USD
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG99GY       Dual Jacket Drop Cable Connector                            50           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG99CZ       Drop Cable Connector Pins                                   500          $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------
    NTEG17DA       F2 RTU or Substitute                                         1           $[ * ]
------------------ -------------------------------------------------------- ---------- -----------------

</TABLE>

                                     Page 7
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex F - Prices
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

For spares Orders greater than $100,000.00 a discount of [ ]% will be offered on
all RBS equipment.

                                     Page 8
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     ANNEX G

                           WARRANTY TERMS AND SERVICES

                                     Page 1
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                PURCHASE AND LICENSE AGREEMENT FOR FWA EQUIPMENT

                                     ANNEX G

This is the Annex "G" of the Purchase and License Agreement for FWA Equipment,
dated as of December 28, 2004 (the "Agreement"), entered into by and among
Airspan Communications Limited ("Airspan"), and Axtel, S.A. de C.V. ("Axtel").

                            PART ONE - WARRANTY TERMS

THE WARRANTIES EXPRESSLY SET FORTH IN THIS ANNEX "G" CONSTITUTE THE ONLY
WARRANTIES MADE BY AIRSPAN WITH RESPECT TO THE PRODUCTS. SUCH WARRANTIES ARE IN
LIEU OF ALL OTHER WARRANTIES AND CONDITIONS, WHETHER STATUTORY, EXPRESS OR
IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE.

1.1     Airspan warrants that the Products will be free from defects in
        materials and workmanship and will function substantially in accordance
        with the applicable specifications during the warranty period of twelve
        (12) months from the respective Delivery Date ("Warranty Period").

1.2     Airspan undertakes to promptly remedy pursuant the terms set forth in
        this Annex "G" all defects discovered in the Products within the
        Warranty Period and properly notified to Airspan in accordance with this
        Section. Repaired or replaced Products shall have a new warranty period
        of 180 days from the date of delivery to Axtel or up to the end of the
        original Warranty Period, whichever is longer.

1.3     Subject to the said Warranty Period(s), Airspan warrants that the
        Products, and any part thereof, will comply and function in accordance
        with the specifications set forth in Annex "D" of the Agreement and all
        of the requirements of the Agreement.

1.4     If an item of Product is or becomes defective during its Warranty
        Period, Airspan will at its option either repair or replace the item. In
        the event Airspan determines that repair or replacement as set forth in
        this Annex G cannot be made using commercially reasonable efforts (which
        determination shall be made within thirty (30) days after Airspan
        receives written notice from Axtel) Airspan will give Axtel a credit
        equal to the purchase price paid by Axtel for the Product, provided that
        Axtel has returned such Product to Airspan.

1.4.1   Axtel must return each defective item to Airspan, at an address to be
        advised by Airspan, no later than sixty (60) days after the end of its
        Warranty Period. When Axtel is required to return a defective Product to
        Airspan for warranty service, Axtel agrees to ship it prepaid and
        suitably packaged to the location designated by Airspan. In making such
        return, Axtel will comply with the procedures specified in Part Two of
        this Annex G. Airspan will repair or replace such defective item at no
        additional charge to Axtel and return, at its own cost, the repaired or
        replacement item to Axtel's address specified in the PO, together with
        the appropriate documentation required for such shipment and return
        shipment thereof. Airspan shall

                                     Page 2
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

        be responsible for loss of, or damage to, Product while it is (y) in
        Airspan's possession, or (z) in transit back to Axtel. Title to each
        replacement item will pass to Axtel on payment in full for the
        replacement item or, if no payment is due, on receipt by Axtel.

1.5     No warranty is provided for: (i) supply items normally consumed during
        Product operation; (ii) failures caused by non-Airspan products; (iii)
        failures caused by a Product's inability to operate in conjunction with
        other Axtel hardware or software different from the Third Party Vendor
        Items provided by Airspan under this Agreement; or (iv) performance
        failures resulting from improper installation and maintenance or Axtel's
        use of unauthorized parts or components.

        The warranty will be voided by misuse, accident, damage, alteration or
        modification, failure to maintain proper physical or operating
        environment, use of unauthorized parts or components or improper Axtel
        maintenance. Software is not warranted to operate uninterrupted or error
        free. The performance by Axtel, directly or indirectly, of the
        installation, engineering, commissioning, network design, support and
        maintenance of FWA Products by skilled personnel in accordance with the
        Airspan Procedures shall not invalidate the warranty provided hereunder.

1.6     Airspan covenants that it has good title to all hardware (including
        Third Party Hardware) to be delivered hereunder and that Airspan shall
        convey to Axtel good title to the hardware free from any and all liens,
        encumbrances or third party rights whatsoever in accordance with the
        Agreement. In addition, Airspan covenants that it is entitled to grant
        Axtel the right to use the Software free from any and all liens or
        encumbrances whatsoever in accordance with the Agreement.

1.7     The warranty and/or the extended warranty shall not be affected if Axtel
        connects to the Products, software or hardware from other suppliers if
        such suppliers' hardware or software complies with international
        telecommunications standards and Axtel is current with Products software
        loads, provided that such current Product software load is required for
        the correct interoperability between such hardware and software.

1.8     Airspan shall provide the hardware repair and shipping instructions for
        all the parts of the Products to be supplied to Axtel by Airspan under
        and in accordance with this Agreement. The Technical Assistance (7x24)
        and Repair & Return Services shall be provided during the Warranty
        Period as detailed in Part Two of this Annex "G" and is included in the
        prices of the Products set forth in Annex "F".

                                     Page 3
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                PURCHASE AND LICENSE AGREEMENT FOR FWA EQUIPMENT

                                     ANNEX G

                          PART TWO - WARRANTY SERVICES

1.0      SERVICES SUMMARY

For Products covered by the warranty given under Part 1 of this Annex G during
the Warranty Period, Airspan will:

     o    Provide Remote Technical Assistance (as defined below) to assist Axtel
          in the diagnosis of hardware failures of any Product supplied by
          Airspan under this Agreement.

     o    Repair or replace a defective Field Replaceable Unit ("FRU"). If an
          FRU becomes defective during the Warranty Period, and provided it has
          been returned to Airspan in accordance with section 1.4 of Part One
          above, Airspan will repair and deliver the FRU to Axtel within 60 days
          following receipt by Airspan of the defective FRU.

               Note: Axtel will maintain its own stock of spares at levels
               sufficient to cover requirements within timeframes consistent
               with Axtel's quality of service objectives.

     Airspan will register and manage requests for Remote Technical Assistance
     and for FRU replacement during normal business days and hours in the
     location where the service is being performed.

     The following specific warranty services ("Services") will be provided by
     Airspan under Part 2:

1.1  Technical Assistance Service during Warranty Period

1.1.1 During the Warranty Period, Airspan will provide Remote Technical
     Assistance (as defined below) to assist Axtel in the diagnosis of hardware
     failures. Specifically, Airspan will provide the following deliverables in
     this regard:

     o    Airspan technicians and engineers will provide support primarily by
          remote means ("Remote Technical Assistance"). In a collaborative
          effort with Axtel's technical staff, these personnel will attempt to
          diagnose and resolve issues related to the hardware supplied by
          Airspan as explained in this service description.

     o    Where telephone support, remote diagnosis, and all other means of
          restoring product operation have failed, Airspan will, upon Axtel's
          request, and if Airspan determines that on-site support is necessary
          and

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          appropriate, at Airspan's expense, dispatch a trained and qualified
          technical expert to Axtel's premises to facilitate further diagnosis.

     o    Should Airspan determination that on-site support is not necessary,
          Axtel will nevertheless have the right to require on site support from
          Airspan, provided that such on site support required by Axtel shall be
          at Axtel's cost unless it is agreed in writing that it was necessary
          for such support to be provided on site.

1.1.2 Axtel Responsibilities for receipt of Remote Technical Assistance

     To receive Remote Technical Assistance, Axtel will be required to:

     o    Confirm that the products have been installed and commissioned and are
          used and maintained by knowledgeable and skilled people in accordance
          with Airspan Procedures.

     o    Replace hardware components during diagnosis or as remedial actions.

     o    Generate performance/availability reports and associated trend
          analysis.

     o    Gather data in a timely manner in support of Airspan' diagnostic
          process when reasonably within the technical competency of Axtel. o
          Identify issues requiring hardware replacement

     o    Perform software upgrades and/or patch applications

     o    Provide connectivity in a timely manner to the Product(s) for Airspan
          to establish a data link for use by Airspan technical support group in
          order to conduct remote diagnosis and maintenance. Axtel and Airspan
          technical personnel will agree on the appropriate type of data link
          based on network equipment and configuration as well as the
          appropriate security measures to prevent unauthorized access. Axtel
          will be solely responsible for security of the network. Airspan will
          not connect to Axtel's network without prior authorization and such
          connection will be solely to provide technical support.

     o    Excuse Airspan from fault resolution for a period equal to such
          failure or delay, should Axtel fail or cause delay in providing
          connectivity

     o    Designate and make available competent personnel to aid in problem
          diagnosis and provide electronic access to the affected Product(s) to
          aid in problem investigation and resolution for all incidents. Axtel
          personnel shall be available to work with Airspan's technical expert
          during all the process for Remote Technical Assistance.

     o    Implement its internal escalation process in order to inform all the
          necessary contacts at Airspan.

     o    Maintain such support agreement(s) with third-party supplier(s) for
          such product(s) other than Products, as Axtel sees fit.

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     o    Exhaust internal troubleshooting processes with first-level its
          Operations, Administration, and Maintenance ("OA&M") functions.
          First-level support includes, but is not limited to:

          -    Performing day-to-day maintenance and network operations

          -    Monitoring network and system alarms

          -    Performing diagnosis in accordance with instructions provided by
               Airspan and carrying out initial remedial actions, including
               remote diagnosis

          -    Operating and controlling Axtel's internal help desk for logging
               and tracking fault inquiries, prioritizing events, and
               escalating, as required, to the Airspan technical support group

          -    Providing local time templates and historical actions performed
               on each event as reference information to the Airspan technical
               support group .

1.1.3 Technical Assistance Services Assumptions

     For Remote Technical Assistance the following assumptions will apply:

     o    2nd & 3rd Level Technical Support Services will be provided by Airspan
          at its cost and expense during the Warranty Period to the Hardware
          elements covered by the warranty.

     o    In the event that Axtel fails to comply with its responsibilities
          described in section 1.1.2 of Part Two, Airspan will advise Axtel in
          writing of its non-compliance. Airspan and Axtel may then agree upon
          services to be provided at the then-current time-and-materials basis
          published by Airspan plus any travel and living expenses incurred

     o    Services provided by Airspan under this Annex G are warranted in
          accordance with Section 6.3 of this Agreement.

     o    Airspan, or a skilled, qualified third-party authorized by Airspan,
          will furnish these Services.

1.1.4 Exclusions

     The following exclusions will govern the provision of Remote Technical
     Assistance:

     o    Software provided by Airspan under this Agreement has no warranty.

     o    Providing advice on how to detect and resolve network-related problems

     o    Diagnosing issues related to Airspan Products interfacing with
          non-Airspan products

     o    Analyzing trace / log / dump / Operational Measurement ("OM")
          information o Emergency Recovery

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     o    Airspan is not responsible for supporting non-Airspan supplied
          third-party product(s). Axtel will be responsible for maintaining
          support agreements with the OEM/third-party supplier for such
          product(s).

     o    No warranty is provided for Product failures caused by events
          specified in Part One - sections 15 and 1.6.

     o    Airspan support obligations are expressly conditional upon the
          Products not being (i) subject to unusual mechanical stress or unusual
          electrical or environmental conditions; (ii) subject to misuse,
          accident or disaster including without limitation, fire, flood, water,
          wind, lightning or other acts of God; or (iii) altered or modified
          unless performed or authorized by Airspan

     o    Products which have not been installed and commissioned by
          appropriately skilled and trained personnel using Airspan Procedures
          are excluded from the warranty.

     o    Remote Technical Assistance will not be provided during installation
          and/or commissioning processes.

1.2  Return and Replace Service

     Airspan Networks will register and manage requests for Return and Replace
     service during Airspan' normal business days and hours in the location
     where the service is being performed.

     Upon receiving Axtel's request, Airspan will allocate a part request number
     (also known as a Return Material Authorization number) to each FRU to be
     replaced and will notify Axtel in writing of the relevant part request
     number.

     Following allocation of the part request number(s) Airspan will repair or
     replace the unit and will deliver the repaired unit or an equivalent to
     Axtel within 60 days of receipt by Airspan at the place where the repair or
     replacement is carried out (the "R&R Time Limit").

     On-site repair and on-site replacement services by Airspan are not included
     with the Return and Replace Service.

1.2.1 Like for Like Replacement

     Airspan, at its own cost and expense, shall provide within 60 days after
     the Effective Date of this Agreement and maintain in Axtel warehouses to be
     notified to Airspan in writing the following amount of Products (the "Stock
     Products"):

<TABLE>
<CAPTION>

              -------- ----------------- ------------------------------------------------------ --------------
                Ref      Part Number                          Description                        Quantities
              -------- ----------------- ------------------------------------------------------ --------------
                 <S>       <C>           <C>                                                         <C>
                 1         NTEG72AD      TBM                                                         16
              -------- ----------------- ------------------------------------------------------ --------------
                 2         NTEG77EC      TMU                                                         16
              -------- ----------------- ------------------------------------------------------ --------------
                 3         NTED4575      TPM                                                          8
              -------- ----------------- ------------------------------------------------------ --------------
                 4         NTEG63AA      TTM                                                          8
              -------- ----------------- ------------------------------------------------------ --------------

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              -------- ----------------- ------------------------------------------------------ --------------
                 5         NTEG73AA      NMM                                                          4
              -------- ----------------- ------------------------------------------------------ --------------
                 6         NTEG74BA      OVPM                                                        12
              -------- ----------------- ------------------------------------------------------ --------------
                 7         NTEG71HA      TPM-PD                                                      12
              -------- ----------------- ------------------------------------------------------ --------------

</TABLE>

     These Stock Products shall be kept by Axtel in its own facilities in Mexico
     and Axtel shall manage such Stock Products at its sole discretion to create
     a replacement process for damaged parts as a "Like for Like" replacement
     process.

     The Parties hereby agree that Airspan shall be obligated to increase the
     Stock Products by one piece of the respective part number, if Airspan is
     more than five (5) days late under section 1.2 of Part Two above, in the
     repair and return of such part (this shall be accounted by pieces).

1.2.2 Axtel Responsibilities for Return and Replace Services

     Axtel will be required to:

     o    Pay the expense of shipping a defective FRU to Airspan's warehouse or
          logistic center defined for this purposes.

     o    Use the specifically-assigned part request number(s) provided by
          Airspan and include completed Airspan Fault Report Forms when
          returning any FRU

     o    Adhere to Airspan' packing instructions (including anti-static
          precautions) when returning the defective unit. The packing
          instructions will be included with the return instructions
          accompanying the replacement FRU

     o    Put the replacement FRU into service once it has been returned by
          Airspan to Axtel.

1.2.3 Assumptions for Repair Services

     The following assumptions will govern the provision of repair Services for
     Products covered by the warranty in the Warranty Period:

     o    Airspan will incur the expense of shipping the repaired unit or the
          replacement unit to Axtel using a method and carrier selected by
          Airspan. Airspan is responsible for loss of, or damage to, an FRU
          while it is in Airspan' possession or in transit to Axtel, as well as
          to pay all applicable duties, taxes, and other charges associated with
          the importation of the repaired or replacement FRU into the country of
          destination.

     o    Unless required for operational reasons and agreed upon with Airspan,
          the replacement FRU will be at the then-current hardware and firmware
          release levels as they are made Generally Available (GA) by Airspan.
          Upon a specific request of Axtel for repair of a quantity of RTUs with
          a specific software release version, the parties will work together to
          define a mutually agreeable process to satisfy such specific request,
          provided that such a process does not cause Airspan to incur any out
          of pocket expenses or material additional cost.

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     o    Warranty on FRU repaired by Airspan shall be limited to one hundred
          and eighty (180) days from delivery of the repaired FRU or to the end
          of the original warranty period, whichever is longer.

     o    The defective FRU returned to Airspan becomes the property of Airspan
          and, subject to Airspan' receipt of the defective FRU, its replacement
          becomes Axtel's property.

     o    Airspan reserves the right to reject the return of any FRU that does
          not clearly display the specific part request Return Material
          Authorization ("RMA") number or does not include the associated
          completed Airspan fault report forms.

     o    Airspan will from time to time assess Products offered and supported.
          The assessment will be based on technology, market development,
          product deployment, and support requirements and may identify certain
          Products that will be discontinued. Airspan reserves the right to
          terminate any service purchased by Axtel for products that have been
          discontinued. Subject to the terms and conditions of the FWA PLA,
          continued support for any discontinued products beyond the effective
          date of discontinuance may be provided in accordance with the terms
          and conditions as stated in the FWA PLA.

     o    The service will be furnished by Airspan or a party authorized by
          Airspan.

     o    As part of the repair service, Airspan will monitor all faulty product
          returns for No Fault Found ("NFF") from Axtel. All repair cases
          resulting in "no fault found" will not be charged to Axtel. In the
          event that such Product presents again in the field within 180 days of
          return date the same failures as noticed by Axtel, Airspan shall
          repair or replace, within 60 days of receipt of the FRU, such Product
          at its cost and expense.

     o    If, in the judgment of Airspan, the returned FRU has been damaged by
          misuse, accident, modification or failure to maintain the proper
          physical or operating environment or improper maintenance by Axtel,
          then Airspan will return the defective un-repaired FRU to Axtel at
          Axtel's expense.

     o    It is critical that Axtel regularly ship all defective Products to
          Airspan, as and when defects are detected, to avoid the accumulation
          of defective Products that will impact Airspan's ability to meet the
          target turnaround times.

     o    In the case of Product replaced at Airspan discretion, and which would
          be returned with a different Serial Number to Axtel, the proper
          documentation shall be provided by Airspan for Axtel's asset controls
          to evidence which serial number is replaced.

1.2.4 Exclusions to Repair Services

     The following exclusions will govern the delivery of repair Services:

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     o    Airspan support obligations are expressly conditional upon the
          products not being (i) subject to unusual mechanical stress or unusual
          electrical or environmental conditions; (ii) subject to misuse,
          accident or disaster including without limitation, fire, flood, water,
          wind, lightning or other acts of God; or (iii) altered or modified
          unless performed or authorized by Airspan.

     o    Repair Services are not offered on Airspan holidays observed in the
          region where the service is being performed.

     o    Additionally, repair Services do not include Emergency Repair Support
          (also known as Emergency Part Dispatch).

     o    Root-cause analysis, the provision of fault reports,
          lead-time/performance metrics, or hardware upgrades

     o    Those exclusions identified in Section 1.5 and 1.6 of Part One of this
          Annex "G". Software is not warranted to operate uninterrupted or error
          free.

2.0  GENERAL

2.1  Holidays Observed by Airspan

     Please refer to your local Airspan representative to get information of
     Local National Holidays observed at Axtel's location.

2.2  Call Center Access for Technical Support

     The Airspan Call Center will function as a single point of contact for the
     receipt of all support calls and inquiries. The remote support effort will
     begin with a telephone call and will continue with the appropriate actions
     to be taken according to Airspan Case Severity Classifications.

     In accordance with Table 2-R below, the Call Center will register and
     manage requests for Remote Technical Assistance during normal business days
     (M-F) and hours (9:00-18:00 hrs), excluding holidays for Business Critical,
     Major and Minor Severity Problems and for E1 and E2 Severity Problems the
     Call Center will be available 24 hours a day, 365 days a year. General
     provisions for accessing Technical Assistance services include:

     o    Airspan may, where applicable, also provide a customer with the
          ability to open, view, and modify cases directly within the Airspan
          case-tracking system via www.Airspan.com. The customer will bear
          telecommunication facility charges and/or long distance toll charges
          associated with access to www.Airspan.com

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     o    Where toll-free access is not available, Axtel will bear
          telecommunication facility charges and/or long distance toll charges
          for access to the Call Center

     o    All cases are logged into the Airspan case-tracking system. The case
          is time-stamped and a case reference number allocated. Furthermore,
          Airspan will request that Axtel agree to a case priority level

     o    E1 and E2 priority cases are to be reported by telephone only

     o    Axtel to escalate a case to higher levels of management within
          Airspan, in accordance with the escalation table in section 2.2.5.

2.2.1 Airspan Technical Support Services Call Process

     When calling Airspan for Technical Assistance or Emergency Recovery,
     Axtel's representative will be asked to provide the following information:
     1. Company name 2. Caller name and phone number 3. Personal Identification
     Number (PIN) or a unique Axtel Purchase Order number or credit card number,
     if a PIN has not been issued.

4.   Site Location/Site ID

5.   Product on which the problem is being reported 6. Problem description and
     severity

     A Call Center agent will generate a Case Reference Number (CRN), which will
     be provided to Axtel for tracking the case. An Airspan technician will then
     team with Axtel's representative to resolve the reported issue.

2.2.2 Call Center Phone Numbers

     Axtel sites in Latin America will access the Airspan technical support
     organizations by calling:

                  Tel:  + (1) 561 893-8679
                  email: from the Airspan Web
                  Site:://www.airspan.com/Ultra/ContactForm/supportform.asp

2.2.3 Technical Support Response Times

     Once Axtel has opened a CRN at the Airspan' Call Center and depending on
     the Severity Classification, an Airspan Technical Support (NTS) Engineer
     will contact Axtel's representative as per the terms set forth in Table 2-R
     below.

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2.2.4 Technical Support Case Priority

     The definitions in this Section 2.2.4 are generic and shall apply to the
     limited extent that this Annex G covers Hardware warranty only. Problem
     reports will be classified as set forth in the tables below.

<TABLE>
<CAPTION>

------------------- -------------------------- --------------------------------------------------------------
 TL9000 Severity     Airspan Case Priority      Examples
 Classification      & Definition
------------------- -------------------------- --------------------------------------------------------------
<S>                  <C>                       <C>
 Critical            E1                        >>       Total or partial network element outage
                     Problems that severely    >>       A reduction in capacity or traffic handling
                     affect service,                 capability such that expected loads cannot be handled
                     capacity/traffic,         >>       Failure resulting in dynamic routing, switching
                     billing and                     capability or transport loss
                     maintenance               >>       Any loss of safety or emergency capability (e.g.,
                     capabilities and                emergency calls such as 911 in North America)
                     require immediate         >>       Loss of the system's ability to perform automatic
                     corrective action,              system reconfiguration
                     regardless of time of     >>       Inability to restart the system
                     day or day of the         >>       Loss of billing/accounting capability
                     week.                     >>       Corruption of billing or system databases that
                                                     requires service affecting corrective actions
                                               >>       Other problems that severely affect service,
                                                     capacity/traffic, billing, and maintenance
                                                     capabilities or are jointly viewed by Airspan and
                                                     Axtel as critical
------------------- -------------------------- --------------------------------------------------------------

--------------------- --------------------- -----------------------------------------------------------------
 TL9000 Severity       Airspan Case          Examples
 Classification        Priority &
                       Definition
--------------------- --------------------- -----------------------------------------------------------------
 Major                 E2                   >>       Loss of redundancy of critical functions
                       Problems that        >>       Loss of protection switching capability
                       result in            >>       Short outages equivalent to system or subsystem
                       potential service          outages not seriously impacting service with accumulated
                       degradation                duration of greater than two minutes in any 24-hour
                       and/or total               period, or that continue to repeat during longer periods
                       outage. Serious      >>       A reduction in provisioned capacity of 5% and for a
                       situation not              cumulative duration of more than 10 minutes per 24 hours
                       involving service    >>       Repeated degradation of DS1/E1 or higher rate spans or
                       degradation in a           connections
                       live environment,    >>       Loss of system's ability to perform automatic system
                       but leading to a           reconfiguration
                       total or partial     >>       Loss of access to maintenance or recovery operations
                       loss of              >>       Any loss of functional visibility and/or diagnostic
                       redundancy.                capability
                                            >>       Loss of system's ability to provide any required
                                                  system critical/major alarms
                                            >>       Total loss of access to provisioning
--------------------- --------------------- -----------------------------------------------------------------

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------------------- ------------------------------------- ---------------------------------------------------
 TL9000 Severity     Airspan Case Priority & Definition    Examples
 Classification
------------------- ------------------------------------- ---------------------------------------------------
 Major               Business Critical                    >>       The customer has been given a
                     Problems that result in a major            work-around but the situation still
                     degradation of system or service           requires constant attention due to the
                     performance that impacts service           temporary nature of the work-around
                     quality or significantly impairs     >>       Software application/migration issues
                     network operator control or                that gate the introduction of new services
                     operational effectiveness.                 or functionality
                     Overall network is degraded          >>       Billing error rates that exceed
                     resulting in severe limitations            specifications
                     to operations or network             >>       Corruption of system or billing databases
                     management software product has
                     major feature that is not working
                     properly with only difficult
                     workaround.
------------------- ------------------------------------- ---------------------------------------------------

-------------------- ---------------------- -----------------------------------------------------------------
 TL9000 Severity      Airspan Case           Examples
 Classification       Priority &
                      Definition
-------------------- ---------------------- -----------------------------------------------------------------
 Major                Major                 >>       Degradation of any capacity/traffic measurement
                      Problems that               function; degradation of functional visibility and/or
                      result in                   diagnostic capability
                      conditions that       >>       Degradation of access for maintenance or recovery
                      seriously affect            operations
                      system operation,     >>       Degradation of the system's ability to provide any
                      maintenance and             required system critical/major alarms
                      administration,       >>       Loss of access for routine administrative activity
                      etc. and require      >>       Any system failure without direct immediate impact
                      immediate             >>       Intermittent degradation of services; partial loss of
                      attention.  The             access to provisioning
                      urgency is less       >>       Software application/migration issues that do not
                      than in a Business          impact service
                      Critical situation    >>       Reduction in any capacity/traffic measurement function
                      because of a          >>       Any loss of functional visibility and/or diagnostic
                      lesser immediate            capability
                      or impending          >>       Any significant increase in product-related customer
                      effect on system            trouble reports
                      performance,          >>       Follow-up to E1 customer problems
                      customers, and        >>       Other problems that disrupt or prevent routine system
                      Axtel's operation           activities, or problems that are jointly viewed as Major
                      and revenue.                events by Airspan and Axtel
-------------------- ---------------------- -----------------------------------------------------------------

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------------------- ----------------------- -----------------------------------------------------------------
 TL9000 Severity     Airspan Case            Examples
 Classification      Priority &
                     Definition
------------------- ----------------------- -----------------------------------------------------------------
 Minor               Minor                  >>       Service analysis, recorded announcements, operational
                     Problems do not              measurements, maintenance program, or network management
                     significantly                problems; or system-related documentation inaccuracies,
                     impair the                   that do not affect call processing
                     functioning of the     >>       Test equipment failures for which a backup or manual
                     system and do not            alternative can be employed
                     significantly          >>       Circuit pack testing problems
                     affect service to
                     customers.  These
                     problems are
                     tolerable during
                     system use.
------------------- ----------------------- -----------------------------------------------------------------

</TABLE>

2.2.5 Case Resolution Objectives and Escalation Procedures

     The definitions in Table 2-R below are generic and shall apply to the
     limited extent that this Annex G covers Hardware warranty only.

     Airspan Technical Support case resolution targets are based in Airspan best
     efforts and set according to the following TL9000 standard:

                                                     "Table 2 - R"

<TABLE>
<CAPTION>

   --------------- -------------------------------- --------------------------- ------------- ----------------
      TL9000                  Actions                                                           Resolution
                                                         Response Times           Target
     Severity                                                                     Service
   Classification                                                               restoration      Targets
                                                                                   time       Based on RQMS*
   --------------- -------------------------------- --------------------------- ------------- ----------------
                                                     Business        Non -
                                                       Hours       Business
                                                                     Hours
   --------------- -------------------------------- ------------- ------------- ------------- ----------------
   <S>             <C>                                <C>           <C>            <C>            <C>
   E1 (*1)         Worked continuously (7 x 24)       15 min        30 min         7 Hr           24 hr
                   until resolution or
                   workaround is provided
   --------------- -------------------------------- ------------- ------------- ------------- ----------------
   E2 (*1)         Worked continuously  (7 x 24)      15 min        30 min         8 Hr          10 Days
                   until resolution or
                   workaround is provided
   --------------- -------------------------------- ------------- ------------- ------------- ----------------
   Business        Worked during normal  business                    Next          24 Hr         30 Days
   Critical and    days and business hours.            2 hrs       Business
   Major (*2)                                                         Day
   --------------- -------------------------------- ------------- ------------- ------------- ----------------
   Minor (*2)      Worked during normal  business      Next          Next         30 Days        180 days
                   days and business hours.          Business      Business
                                                        Day           Day
   --------------- -------------------------------- ------------- ------------- ------------- ----------------

</TABLE>

(*1) This Service is provided 7 x 24

(*2) This Service is provided in Normal Business Hours

Note: The times set forth in Table 2 - R above, are subject to Airspan and Axtel
working together in conjunction on a reasonable efforts basis to find a
workaround for services restoration and resolution within the target times.
These times do not represent an obligation or performance indicator.

* RQMS - Reliability and Quality Measurements for Telecommunications Systems.

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                         "Airspan Escalation Procedure"

                     ---------------------------------------
                                   Axtel's NOC
                     ---------------------------------------

                     ---------------------------------------
                               Call Center Airspan
                     ---------------------------------------

                     ---------------------------------------
                       Airspan Technical Support Engineer
                     ---------------------------------------

                     ---------------------------------------
                       Airspan Technical Support Manager.
                     ---------------------------------------

                     ---------------------------------------
                       Airspan Technical Support Sr. Mgr.
                     ---------------------------------------

       -------------------------------------------------------------------

       ------------------------------            -----------------------------
        Airspan Technical Support                  Airspan Axtel Operation
                 Director                                  Leader
       ------------------------------            -----------------------------

          At Closing Date, Airspan will provide Axtel with the contact
          information of the persons involved in this Escalation Procedures, as
          well from time to time, the changes to such contact information will
          be provided to Axtel.

2.2.6 Case Progress Status

Airspan Technical Support use the following status to differentiate the case
conditions during the evolution of the case investigation. A set of status, its
related meaning and its relationship with the case age, are defined in the table
below:

<TABLE>
<CAPTION>

    --------------------- ----------------------------------------------------------------- ----------------
    Status                Description                                                       Airspan Clock
    --------------------- ----------------------------------------------------------------- ----------------
    <S>                   <C>                                                               <C>
    Newly Opened          This status is the default.  It signifies that no work has been   Start
                          done on the case.
    --------------------- ----------------------------------------------------------------- ----------------
    WIP Level 1           This status is used when a NTS Engineer is actively  working on   Not Stopped
                          the Case.
    --------------------- ----------------------------------------------------------------- ----------------
                          This status is used when a Second Level Support Engineer is
    WIP Level 2           actively working a case                                           Not Stopped
                          * Second Level Support: Software Support, Product Support.
    --------------------- ----------------------------------------------------------------- ----------------
    Escalated             This status is used when a Design Engineer
    To Design             is actively working Not Stopped on the case
    --------------------- ----------------------------------------------------------------- ----------------

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    --------------------- ----------------------------------------------------------------- ----------------
    Status                Description                                                       Airspan Clock
    --------------------- ----------------------------------------------------------------- ----------------
    Answer                Design Engineer has concluded its
    From Design           investigation and has Not Stopped replied back to the
                          NTS Engineer
    --------------------- ----------------------------------------------------------------- ----------------
                          During the course of conducting their research, the
                          NTS Engineer may need additional information or
                          activity from the
    With A Axtel          Axtel.  The  "With a Axtel"  status  is  assigned  when the NTS   Stopped
                          Engineer  is waiting on a Axtel  response  in order to continue
                          investigation
    --------------------- ----------------------------------------------------------------- ----------------

                          If a temporary solution is provided that eliminates
                          Axtels pain until a permanent solution can be
                          delivered, RQMS requirements allow the case to be set
                          to an "IS" status during this window of time if
                          approved by the Axtel. In calculating case age, this
    Interim Solution      interval will be discounted if the permanent
                          fix was delivered Stopped on the negotiated commitment
                          date. If the permanent fix does not resolve the
                          reported problem, case status shall be changed to Work
                          in Progress (Level 1 or 2). If the case is returned to
                          a Work in Progress (Level 1 or 2) status after using
                          the IS, the IS time period will be added to the RQMS
                          age of the case.
    --------------------- ----------------------------------------------------------------- ----------------
                          Axtel agrees to live with the problem condition and
                          that the fix will be delivered as part of a future
                          Airspan product release (software release, maintenance
                          release, documentation release or hardware revision.
                          Requirements to use this status include Axtel consent;
                          fix identification, and delivery
    Future Deliverable    commitment. This status code does not add
                          time to the RQMS age Stopped of the case unless the
                          solution fails and the case is moved back to Work in
                          Progress (Level 1 or 2) status. If the case is
                          returned to a Work in Progress (Level 1 or 2) status
                          after using the FD, the FD time period will be added
                          to the RQMS age of the case.
    --------------------- ----------------------------------------------------------------- ----------------
                          Solution Delivered or available for testing and
                          verification. If the delivered solution does not
                          resolve the reported problem, the status will be
                          changed to Work in Progress (Level
    Solution Delivered    1 or 2). If the case is returned to a Work
                          in Progress (Level Stopped 1 or 2) status after using
                          the SD status, the SD time period will be added to the
                          RQMS age of the case.
    --------------------- ----------------------------------------------------------------- ----------------
    Pending OEM Vendor    The case has been handed over to an OEM Vendor for resolution     Not Stopped
    --------------------- ----------------------------------------------------------------- ----------------

</TABLE>

2.2.7 Case Resolutions Classifications

          Airspan Technical Support case resolutions, which shall be mutually
          agreed for each case:

     o    Cannot Reproduce: After 60 days and a reasonable effort, a problem has
          not been observed in the Network, is not reproducible or sufficient
          information has not been provided to adequately troubleshoot the
          problem and isolate the root cause

     o    Axtel Process: Human errors are present or Axtel has failed to follow
          procedures recommended and documented by Airspan

     o    Design Intent: The functionality required by customer does not align
          with the design specifications of the product set forth in Agreement,
          in which case Airspan shall make clear to Axtel which is such design
          specification

                                    Page 16
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

          (i.e., the functionality is unsupported), and the issue can only be
          resolved through new development efforts subject to a separate product
          development agreement and charges.

     o    External Cause: Issue caused by non-Airspan products

     o    Hardware Deficiency: A problem is isolated to defective hardware
          materials or workmanship or substantial nonconformance to
          specifications published by Airspan

     o    Hardware Failure: A problem is caused by a hardware component failure
          that falls within Mean Time Between Failure (MTBF) limitations

     o    Airspan Literature: Required Airspan technical document does not exist
          or the contents of an existing document are in error [for example, an
          incomplete Airspan Technical Publication (NTP)]

     o    Airspan Process: A problem occurs as a result of a Airspan process
          deficiency

     o    Opened in Error: The case should not have been opened

     o    Scheduled Event: An outage occurs resulting from planned maintenance,
          installation, or manual initialization, including such activities as
          parameter loads, software/firmware changes, and other OA&M activities

     o    Software Deficiency: A problem is isolated to a software design
          deficiency.

2.3  Axtel Order Process for FWA Repair Services

          This process supports the delivery of Airspan FWA Repair Services for
          Axtel. When requesting a Hardware warranty repair service, Axtel
          should have the following required information ready when placing a
          repair order with Airspan:

     1.   Axtel or distributor name

     2.   Axtel ID (Project #, Site ID)

     3.   Requestor name, phone and fax number, and e-mail address

     4.   Axtel ship to address

     5.   Part number (PEC or CPC or manufacturer's part number)

     6.   Quantity (quantity of one per serial number)

     7.   Serial number of the defective part(s) being returned (if applicable)

     8.   Warranty status

     9.   Confirmation of the availability of a fully completed Airspan fault
          report form for said product.

     10.  Any additional information about product (system type or software
          release)

     11.  Any special shipping instructions

          Upon receiving Axtel's request and after any diagnostics assistance,
          Airspan will allocate a part request number to each FRU to be repaired
          and notify Axtel of the relevant part request number.

                                    Page 17
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

          This part request number, also known as the Return Material
          Authorization (RMA) number, is critical for tracking individual orders
          and must be referenced on failure tags, shipping/packing lists,
          returned defectives, and any correspondence or inquiries concerning
          the order.

          The customer's representative can call in, fax or e-mail a Repair
          Service order directly to Airspan the UK using the following contact
          means:

          Office hours (Monday through Friday from 9:00 a.m. to 6:00 p.m. (Local
          time)

          + 44-1895-467397

          Faxes

          All faxed orders will be processed and assigned an RMA# by the close
          of the next business day. Faxed emergency orders must also be called
          in to verify receipt of faxes. E-mail To obtain a parts request form
          by e-mail, please send an e-mail message to any of the above addresses
          and note "repair order form" in the subject/title field. A form will
          be sent automatically. Place the PO number in the subject/title field
          when e-mailing a completed parts request form back to Airspan. For
          order confirmation, Airspan will respond with an RMA number to all
          e-mail orders by the next business day.

2.4.1 Method of Payment for Excluded Services

          If Axtel requests a service that is neither part of the scope of this
          Warranty Service nor within the control or responsibility of Airspan
          under the Technical Assistance Support Services Agreement, then
          Airspan will charge additional fees to perform such services, in the
          event that Airspan agrees to perform them. Airspan reserves the right
          not to perform any Service not covered by this Warranty.

2.4.2 Package Labeling Instructions and Addresses for Returns

          Circuit packs should be packed in anti-static containers designed
          specifically for the circuit packs in order to avoid damage during
          shipment. Other parts should be individually wrapped in either
          anti-static packaging or packaging specifically designed for that
          product to avoid damage during shipment. Airspan will inform customers
          of any improper packaging, which will void the warranty. All materials
          should be returned pre-paid and sent to the appropriate Airspan repair
          facility. The customer should use discretion in selecting shipping
          methods. Airspan recommends that customers insure all packages to
          cover possible loss or damage during shipping, regardless of warranty
          status.

          A completed Airspan fault report must be filled out and attached to
          each returned item to assist in failure assessment and problem
          tracking. Fault reports

                                    Page 18
<PAGE>

Annex G - Warranty Services
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

          are sent with each replacement shipment. Axtel can obtain additional
          supplies by contacting the Airspan Customer Support Center.

          Airspan will inform customers of any discrepancy in return shipments.
          Any discrepancy, whether it is quantity (more or less), product
          returned not matching what was ordered, inability to determine
          complete order information, or non-suitable packaging, would be noted
          and addressed.

          Defective Return Packing Slips

          Defective return packing slips should be used to return all defective
          parts to Airspan. Airspan will provide defective return packing slips
          for use to return shipments. A copy of the defective return packing
          slip should be placed in all the cartons and attached outside. This
          duplication will aid in processes and proper identification of
          returned material. The RMA number and the PO number should be clearly
          marked on the outside of each box. If a customer supplies a packing
          slip, the following information must be included on the
          shipping/packing list for proper handling:

          Item (Information Required)

     1.   From (Company name, return address, and telephone number)

     2.   Ship Date (Date parts are shipped from Axtel)

     3.   Ship via (Carrier or Enterprise name)

     4.   Waybill number (Carrier or Enterprise tracking number

     5.   Number of Cartons (Number of cartons being sent on shipment)

     6.   Axtel's PO# (Provided, if applicable)

     7.   Repair order number (RMA# issued by Call Center when order is placed)

     8.   Site ID or Project number

     9.   Item Number

     10.  Quantity ordered

     11.  Quantity returned

     12.  Airspan Part number

     13.  Description of item

     14.  Serial number (The serial number for each item in the shipment)

     15.  Shipment requested by (Signature of Axtel's representative)

          Repair Facility Addresses

          For RSS's the equipment should be sent to Solectron Guadalajara and
          for base stations to Solectron Dumfermline

          Attn: Airspan Hardware Support Representative

          This address may be modified from time to time by Airspan.

                                    Page 19
<PAGE>

Annex H - Acceptance Procedure
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     ANNEX H

                              ACCEPTANCE PROCEDURE
                               NEW FWA RSS F6 UNIT

                                     Page 1
<PAGE>

Annex H - Acceptance Procedure
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                PURCHASE AND LICENSE AGREEMENT FOR FWA EQUIPMENT

                                     ANNEX H
                   ACCEPTANCE PROCEDURE - NEW FWA RSS F6 UNIT

--------------------------------------------------------------------------------

This is the Annex "H" of the Purchase and License Agreement for FWA Equipment,
dated as of December __, 2004 (the "Agreement"), is entered into by and among
Airspan Communications Limited ("Airspan"), and Axtel, S.A. de C.V. ("Axtel").

The Parties hereby agree to determine and establish on or before January 31st,
2005, the acceptance procedure to be used in the First Market Application of the
New FWA RSS F6 Unit (the "Acceptance Procedure"). The acceptance procedure shall
demonstrate, verify and prove that the New FWA RSS F6 Unit shall have at least
the same form, function and fit of both of the current RSS Equipment (jointly F2
and F5 RSS equipment), in accordance with the technical specifications set forth
in Annex "D" of the Agreement.

Airspan will provide a number of fifteen (15) New FWA RSS F6 Unit to Axtel by
January 30th 2005 in order for Axtel to perform and have completed no later than
March 15th 2005 a first market application of the New FWA RSS F6 Unit before the
New Product Commercial Launch (the "First Market Application").

The New FWA RSS F6 Unit shall pass successfully the First Market Application
made by Axtel pursuant the Acceptance Procedure.

If Axtel considers it necessary, Axtel will have the right to request Airspan to
assist Axtel in a verification office of the New FWA RSS F6 Unit. Airspan will
provide a quote for this service under this Agreement at reasonable costs and
prices.

                                     Page 2

<PAGE>

Annex J
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     Annex J

                             PLA FWA Delivery Times

                                     Page 1
<PAGE>

Annex J
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     ANNEX J

                                 DELIVERY TIMES

1.-  Delivery Time of any FWA Product

     (i)  Any FWA Product

          Subject to the provisions of section 5.19 of the Agreement, the firm
          Delivery of any FWA Product (RSS, complete or segregated RBS Equipment
          or Spare Parts) shall be 20 weeks after Order Acceptance as provided
          in Section 2 of the Agreement, provided that the payments for such
          equipment shall be made pursuant the terms set forth in Section 5.3 of
          the Agreement.

2.-  Partial Deliveries

     (i)  RSS Equipment

          Partial deliveries of an Order for RSS equipment shall be allowed only
          in the following circumstances:

          a.   For any order of RSS equipment Airspan may deliver no less than
               750 RSS units at any one time;

          b.   where Airspan has made a partial delivery in accordance with a.
               above, the remaining quantities of the Order; or

          c.   unless otherwise agreed in writing by the Parties.

     (ii) RBS Equipment

          Partial RBS deliveries shall only be allowed if Airspan delivers
          complete units of RBS Kits, either 27B or 18B RBS as per the
          Description of the RBS Kit, unless otherwise agreed in writing by the
          Parties.

     (iii) Segregated RBS Equipment or Spare Parts

          Partial segregated RBS Equipment or Spare Parts deliveries shall be
          only allowed to the 50% of the respective complete Order, unless
          otherwise agreed in writing by the Parties.

     (iv) Partial shipments as provided above, shall not release Airspan of its
          obligations to deliver on time such Products as provided in this Annex
          J. Any delay in the delivery of such Products shall be subject to the
          terms set forth in section 3.4 of the Agreement.

                                     Page 2
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex K
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                     ANNEX K

                               PURCHASE COMMITMENT

                                     Page 1
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex K
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

                                    ANNEX "K"
                               PURCHASE COMMITMENT

--------------------------------------------------------------------------------

1.-  Total Purchase Commitment. Axtel hereby agrees to purchase and take
     delivery US $38,700,000.00 Dollars (Thirty Eight Million Seven Hundred
     Thousand United States Dollars) of Airspan equipment from December 22, 2004
     through to December 31, 2006 (the "Purchase Commitment").

2.-  Purchase Commitment Fulfillment. The Parties hereby agree that the Purchase
     Commitment mentioned above will be fulfilled taking in consideration the
     following terms and conditions:

     a)   Second Lines Activation Fees. US$[ * ] ([ * ] Dollars) of Second Lines
          Activation Fees set forth in Section 22 of the Agreement, will be
          included in the Purchase Commitment as and when paid by Axtel.

     b)   The Commercial Terms Letter Purchase. The US$[ * ] Dollars ([ * ]
          United States Dollars) of equipment detailed in the Special Payment
          and Commercial terms letter dated [ * ] for delivery between [ * ]
          will be included in the Purchase Commitment as and when delivered;

     c)   Minimum Purchase of RSS Equipment. Axtel shall purchase and take
          delivery of a minimum of 45,000 RSS from May 1, 2005 through to July
          31, 2006 (for an approximately amount of US$14,512,500.00 Dollars);

          RSS orders placed in accordance with c) above shall be equal to or
          greater than 3,000 units per month

     d)   Minimum Purchase of RBS Equipment. From [ * ], Axtel shall purchase
          and take delivery of US$[ * ] Dollars ([ * ] Dollars) of Proximity
          Base Station Equipment;

     e)   Minimum Purchase of Airspan Equipment (January - December 2006). For
          the calendar year 2006, Axtel shall purchase and take delivery of a
          minimum of US$9,332,500.00 (Nine Million Three Hundred Thirty Two
          Thousand Five Hundred United States Dollars) of any Airspan equipment,
          provided that, of such amount, US$5,586,000.00 shall be of Airspan Non

          RSS Equipment and the remaining amount (US$3,746,500.00) shall be of
          any Airspan equipment.

                                     Page 2
<PAGE>

Note: Portions of this exhibit indicated by "[ * ]" are subject to a
confidential treatment request, and have been omitted from this exhibit.
Complete, unredacted copies of this exhibit have been filed with the Securities
and Exchange Commission as part of the Company's confidential treatment request.

Annex K
Purchase and License Agreement for FWA Equipment (December 2004)

--------------------------------------------------------------------------------

          For the avoidance of doubt, the US$4,480,000.00 Dollars of purchases
          required in f) below will be included in this $9,332,500.00 Dollars
          total to the extent that the equipment is delivered in 2006.

     f)   Minimum Purchase of Airspan Equipment (August - December 2006). From
          August 1, 2006 through to December 31, 2006, Axtel shall purchase and
          take delivery of an additional 13,892 RSSs or other Airspan products
          with a minimum purchase price of US$4,480,000.00 Dollars (Four Million
          Four Hundred Eighty Thousand United States Dollars);

          In order for Airspan to continue its obligation to supply FWA
          equipment beyond May 1st, 2006, Axtel will be required to place and
          maintain orders of [ * ] RSS units a month from January 1st 2006

     g)   The parties agree that in July 2005 they will discuss and schedule, if
          possible, the delivery times for future purchases under the Purchase
          Commitment, taking in consideration the terms and conditions set forth
          in this Agreement.

3.   Special Term. Any purchase made by Axtel in 2005 for an amount in excess of
     the amounts set forth in sections (a), (b), (c) and (d) above, shall be
     accounted for as an Axtel purchase under sections (e) and (f) above, so in
     the aggregate the Purchase Commitment of Axtel shall not be greater than
     the amount of US$38,700,000.00 Dollars (Thirty Eight Million Seven Hundred
     Thousand United States Dollars).

                                     Page 3July 28, 2005 8k Ex 10.1

    

    Exhibit
      10.1

    

                                                 
      ASSET PURCHASE AGREEMENT

    

    AMONG

     

    FARWELL
      EQUITY PARTNERS, LLC

     

    OBLIO
      TELECOM, INC.

     

    OBLIO
      TELECOM L.L.P.,

     

    SAMMY
      JIBRIN

     

    AND

     

    RADU
      ACHIRILOAIE

    

    

    

    

    Dated
      as of July 28, 2005

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    
      	ARTICLE I.
              PURCHASE AND SALES ASSETS. 	1
	 	 
	
              1.1.

            	
              Sale
                of Assets

            	 
	
              1.2.

            	
              Excluded
                Assets

            	
              2

            
	
              1.3.

            	
              Assumed
                Liabilities; Excluded Liabilities; Employees.

            	
              2

            
	
              1.4.

            	
              Purchase
                Price; Adjustment; Payment.

            	
              3

            
	
              1.5.

            	
              Purchase
                Price Allocation

            	
              5

            
	
              1.6.

            	
              Records
                and Contracts

            	
              5

            
	
              1.7.

            	
              Further
                Assurances

            	
              5

            
	
              1.8.

            	
              Sales
                and Transfer Taxes

            	
              5

            
	
              1.9.

            	
              Transfer
                of Subject Assets

            	
              5

            
	
              ARTICLE
                II. CLOSING AND TERMINATION

            	
              6

            
	
              2.1.

            	
              Closing
                Date

            	
              6

            
	
              2.2.

            	
              Termination
                of Agreement

            	
              7

            
	
              2.3.

            	
              Procedure
                Upon Termination

            	
              7

            
	
              2.4.

            	
              Effect
                of Termination

            	
              7

            
	
              ARTICLE

              III.

            	
              REPRESENTATIONS
                AND WARRANTIES OF THE SELLER AND THE OWNERS

            	
               

              7

            
	
              3.1.

            	
              Organization
                and Good Standing

            	
              7

            
	
              3.2.

            	
              Authorization
                of Agreement

            	
              8

            
	
              3.3.

            	
              Ownership
                of Seller

            	
              8

            
	
              3.4.

            	
              No
                Subsidiaries

            	
              8

            
	
              3.5.

            	
              Conflicts;
                Consents of Third Parties.

            	
              8

            
	
              3.6.

            	
              Ownership
                and Transfer of Assets

            	
              9

            
	
              3.7.

            	
              Financial
                Statements

            	
              9

            
	
              3.8.

            	
              No
                Undisclosed Liabilities

            	
              9

            
	
              3.9.

            	
              Absence
                of Certain Developments

            	
              10

            
	
              3.10.

            	
              Taxes.

            	
              11

            
	
              3.11.

            	
              Real
                Property.

            	
              13

            
	
              3.12.

            	
              Tangible
                Personal Property.

            	
              14

            
	
              3.13.

            	
              Intangible
                Property

            	
              14

            
	
              3.14.

            	
              Material
                Contracts

            	
              15

            
	
              3.15.

            	
              Employee
                Benefits.

            	
              15

            
	
              3.16.

            	
              Labor.

            	
              16

            
	
              3.17.

            	
              Litigation

            	
              17

            
	
              3.18.

            	
              Compliance
                with Laws; Permits.

            	
              17

            
	
              3.19.

            	
              Environmental
                Matters

            	
              17

            
	
              3.20.

            	
              Insurance

            	
              18

            
	
              3.21.

            	
              Inventories;
                Receivables; Payables.

            	
              18

            
	
              3.22.

            	
              Customers
                and Suppliers

            	
              18

            
	
              3.23.

            	
              Banks

            	
              19

            

    

    

    

    

    -
      i
      -

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              3.24.

            	
              No
                Misrepresentations

            	
              19

            
	
              3.25.

            	
              Financial
                Advisors

            	
              19

            
	
              3.26.

            	
              Investment
                Intention

            	
              19

            
	
              3.27.

            	
              Accredited
                Investor

            	
              19

            
	
              3.28.

            	
              Patriot
                Act

            	
              19

            
	
              ARTICLE

              IV.

            	
              REPRESENTATIONS
                AND WARRANTIES OF PURCHASER AND ACQUISITION SUB

            	
               

              20

            
	
              4.1.

            	
              Organization
                and Good Standing.

            	
              20

            
	
              4.2.

            	
              Authorization
                of Agreement.

            	
              20

            
	
              4.3.

            	
              Conflicts;
                Consents of Third Parties.

            	
              21

            
	
              4.4.

            	
              Litigation

            	
              21

            
	
              4.5.

            	
              Financial
                Advisors

            	
              21

            
	
              4.6.

            	
              Patriot
                Act

            	
              21

            
	
              4.7.

            	
              No
                Knowledge of Breaches

            	
              21

            
	
              ARTICLE
                V. COVENANTS

            	
              22

            
	
              5.1.

            	
              Access
                to Information

            	
              22

            
	
              5.2.

            	
              Conduct
                of the Business Pending the Closing.

            	
              22

            
	
              5.3.

            	
              Consents

            	
              23

            
	
              5.4.

            	
              Other
                Actions

            	
              24

            
	
              5.5.

            	
              No
                Solicitation

            	
              24

            
	
              5.6.

            	
              Preservation
                of Records

            	
              24

            
	
              5.7.

            	
              Publicity

            	
              24

            
	
              5.8.

            	
              Use
                of Name

            	
              25

            
	
              5.9.

            	
              Employment
                Agreements

            	
              25

            
	
              5.10.

            	
              Financing
                Terms

            	
              25

            
	
              ARTICLE

              VI.

            	
              CONDITIONS
                TO CLOSING

            	
               

              25

            
	
              6.1.

            	
              Conditions
                Precedent to Obligations of Parent and Acquisition Sub

            	
              25

            
	
              6.2.

            	
              Conditions
                Precedent to Obligations of the Seller and Owners

            	
              26

            
	
              ARTICLE

              VII.

            	
              DOCUMENTS
                TO BE DELIVERED

            	
               

              27

            
	
              7.1.

            	
              Documents
                to be Delivered by the Seller

            	
              27

            
	
              7.2.

            	
              Documents
                to be Delivered by the Parent

            	
              27

            
	
              ARTICLE

              VIII.

            	
              INDEMNIFICATION

            	
               

              27

            
	
              8.1.

            	
              Indemnification.

            	
              27

            
	
              8.2.

            	
              Limitations
                on Indemnification

            	
              29

            
	
              8.3.

            	
              Indemnification
                Procedures.

            	
              29

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              ARTICLE

              IX.

            	
              MISCELLANEOUS

            	
               

              30

            
	
              9.1.

            	
              Payment
                of Sales, Use or Similar Taxes

            	
              30

            
	
              9.2.

            	
              Survival
                of Representations and Warranties

            	
              30

            
	
              9.3.

            	
              Expenses

            	
              30

            
	
              9.4.

            	
              Specific
                Performance

            	
              30

            
	
              9.5.

            	
              Further
                Assurances

            	
              31

            
	
              9.6.

            	
              Submission
                to Jurisdiction; Consent to Service of Process

            	
              31

            
	
              9.7.

            	
              Entire
                Agreement; Amendments and Waivers

            	
              31

            
	
              9.8.

            	
              Table
                of Contents and Headings

            	
              32

            
	
              9.9.

            	
              Notices

            	
              32

            
	
              9.10.

            	
              Severability

            	
              33

            
	
              9.11.

            	
              Binding
                Effect; Assignment

            	
              33

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ASSET
      PURCHASE AGREEMENT

    

    ASSET
      PURCHASE AGREEMENT, dated as of July 28, 2005 (the “Agreement”), between Farwell
      Equity Partners, LLC , a Delaware limited liability company (the “Parent”),
      Oblio Telecom, Inc., a corporation existing under the laws of Delaware and
      a
      wholly owned
      subsidiary of Parent (“Acquisition Sub”), Oblio Telecom L.L.P., a privately held
      limited liability partnership existing under the laws of
      Texas
      (the “Seller”), and Sammy Jibrin and Radu Achiriloaie (the
“Owners”).

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      subject to the terms and conditions hereof, Seller desires to sell, transfer
      and
      assign to Acquisition Sub, and Acquisition Sub
      desires to purchase from Seller, all of the properties, rights and assets
      constituting the business of Seller, which is engaged in the
      creation,
      marketing, and distribution of prepaid telephone products for the wire line
      and
      wireless markets (the “Business”); and

    

    WHEREAS,
      immediately following the completion of the transactions contemplated hereunder,
      Parent intends to transfer its ownership interest in Acquisition Sub to
      Ventures-National Incorporated, an Affiliate (as such term is defined herein)
      of
      Parent (“VNI”);

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements hereinafter contained, the parties hereby agree as
      follows:

     

                                                        
      ARTICLE I.

                                
      PURCHASE
      AND SALE OF ASSETS.

    

    1.1. Sale
      of Assets. Seller
      agrees to sell, assign, transfer and deliver to Acquisition Sub, and Acquisition
      Sub agrees to purchase
      from
      Seller, all of Seller’s right, title and interest in and to all of the
      properties, assets and business of the Business, of every kind and description,
      tangible and intangible, real, personal or mixed, and wherever located, but
      excluding the Excluded Assets, including, without limitation, the
      following:

    

    (a) Equipment.
      All
      assets of any kind or nature, including all fixed assets, equipment, furniture,
      fixtures, leasehold improvements located within the Seller’s office located at
      407 International Parkway, Suite 403, Richardson, Texas, inventory, office
      materials, software, supplies and other tangible personal property of every
      kind
      and description owned by Seller and used or held for use in connection with
      the
      Business, all as set forth on Schedule 1.1(a) attached hereto
      (“Equipment”);

    

    (b) Contracts.
      All
      of
      the rights of Seller under, and interest of Seller in and to, all contracts
      relating to the Business, a true, correct and complete list of which contracts
      is attached hereto as Schedule 1.1(b) (“Contracts”);

    

    (c) Intellectual
      Property. All
      of
      Seller’s Intellectual Property relating to the Business, as set forth on
      Schedule 1.1(c) attached hereto;

    

    

     

    
      -1-

      
        

      

    

     

    (d) Goodwill.
      All
      of
      the goodwill of Seller in, and the going concern value of, the Business, and
      all
      of the business and customer lists and accounts, proprietary information,
      marketing materials and trade secrets related to the Business;

    

    

    (e) Claims.
      All
      claims, entitlements, rebates, refunds, settlements, awards or other rights
      related to any Assets or the operation of the Business prior to the Closing
      Date;

    

    (f) Records.
      All
      of
      Seller’s customer logs, location files and records, and other business files and
      records, in each case relating to the Business; and

    

    (g) Stock.
      All
      outstanding shares of common stock of Pinless, Inc. (“Pinless”), which will be
      contributed by the Owners to Seller immediately prior to the
      Closing.

    

    The
      assets, properties and business of Seller being sold to and purchased by Parent
      under this Section 1.1 are referred to herein collectively as the
“Assets.”

    

    1.2. Excluded
      Assets. There
      shall be excluded from the Assets and retained by Seller, the following assets
      (the “Excluded

    Assets”):

    

    (a) Assets.
      All
      assets identified on Schedule 1.2(a) attached hereto, and all other assets
      of
      Seller which are not used or held for use in connection with the Business or
      otherwise necessary to the operation of the Business; and

    

    (b) Partnership
      Records. All
      of
      Seller’s partnership and other organizational records.

    

    1.3. Assumed
      Liabilities; Excluded Liabilities; Employees.

     

    (a) Assumed
      Liabilities. Acquisition
      Sub shall accept and assume, and shall become and be fully liable and
      responsible for, and other
      than as expressly set forth herein Seller shall have no further liability or
      responsibility for or with respect to, (i) liabilities and
      obligations
      arising
      out of events occurring on and after the Closing Date related to Acquisition
      Sub’s ownership of the Assets and Acquisition Sub’s operation
      of the Business after the consummation of the transactions contemplated herein;
      (ii) all obligations and liabilities of Seller which are
      to be
      performed after the Closing Date arising under the Contracts; and (iii) the
      liabilities identified on Schedule 1.3(a) attached hereto (collectively, the
      “Assumed Liabilities”). The assumption of the Assumed Liabilities by Acquisition
      Sub hereunder shall not enlarge any rights of third parties under contracts
      or
      arrangements with Parent or Seller or any of their respective affiliates or
      subsidiaries.

    

    (b) Excluded
      Liabilities. It
      is
      expressly understood that, except for the Assumed Liabilities, Acquisition
      Sub
      shall not assume, pay
      or be
      liable for any liability or obligation of Seller of any kind or nature at any
      time existing or asserted, whether, known, unknown, fixed,
      contingent or otherwise, not specifically assumed herein by Parent or
      Acquisition Sub, and any liability or obligation relating to, resulting from
      or
      arising out of (i) the Excluded Assets, (ii) the employees of the Business
      or
      (iii) any fact existing or event occurring prior to, or relating to the
      operation of the Business prior to, the date hereof.

    

    

    
    

    
      
        
          
          

        

        
          -2-

          
            

          

        

        
          
          

        

      

      
         

      

    

    
      (c)
        Employees, Wages and Benefits.

    

    

    (i) Seller
      shall terminate or reassign all of its employees related to the Business
      effective as of the Closing Date and neither
      Parent nor Acquisition Sub shall assume or have any obligations or liabilities
      with respect to such employees or such terminations,
      including, without limitation, any severance obligation.

    

    (ii) Parent
      and Acquisition Sub specifically reserve the right, on or after the date hereof,
      to employ or reject any of Seller’s employees or other applicants in its sole
      and absolute discretion. Nothing in this Agreement shall be construed as a
      commitment or obligation
      of Parent to accept for employment, or otherwise continue the employment of,
      any
      of Seller’s employees, and no employee shall be
      a third
      party beneficiary of this Agreement.

    

    (iii) Seller
      shall pay all wages, salaries, commissions, and the cost of all fringe benefits
      provided to its employees which shall have become due for work performed as
      of
      and through the date hereof, and Seller shall collect and pay all Taxes in
      respect of such wages, salaries, commissions and benefits.

    

    (iv) Seller
      acknowledges and agrees that neither Parent nor Acquisition Sub shall acquire
      any rights or interests of Seller in,
      or
      assume or have any obligations or liabilities of Seller under, any benefit
      plans
      maintained by Seller, or for the benefit of any employees
      of
      Seller, including, without limitation, obligations for severance; provided,
      however, that for the year 2005 Acquisition Sub shall honor all vacation
      policies of Seller with respect to former employees of Seller who are hired
      by
      Acquisition Sub.

    

    1.4.
      Purchase Price; Adjustment; Payment.

     

    (a) Purchase
      Price. In
      consideration of the sale by Seller to Acquisition Sub of the Assets, and
      subject to the assumption by Acquisition
      Sub of the Assumed Liabilities and satisfaction of the conditions contained
      herein, Parent shall pay to Seller an amount equal to
      Thirty
      Million Five Hundred Thousand Dollars ($30,500,000), which amount shall be
      adjusted in accordance with Section 1.4(b)(ii) and Acquisition Sub shall assume
      the Assumed Liabilities.

    

    (b) Payment
      of Purchase Price. The
      Purchase Price will be paid as follows:

    

    (i) Closing
      Payment. On
      the
      Closing Date hereof (as hereafter defined), the Parent shall deliver to the
      Seller (a) $19,000,000
      (the “Cash Price”), subject to adjustment as set forth in Section 1.4(b)(ii)
      below, via wire transfer of immediately available funds
      into an
      account designated by the Seller, (b) a secured promissory note in the principal
      amount of $2,500,000 substantially in the form of Exhibit A (the “Promissory
      Note”), and (c) 9,000 shares of Series A Convertible Preferred Stock of
      Acquisition Sub with an initial stated value of $9,000,000, the terms of which
      are set forth in the Certificate of Designations attached hereto as Exhibit
      B
      (the “Shares”). On the Closing
      Date, $1,000,000 of the Cash Price shall be placed in escrow (the “Escrow
      Account”) pursuant to the terms and provisions of the form
      of
      escrow agreement attached hereto as Exhibit D (the “Escrow Agreement”). In
      addition, on the Closing Date, VNI shall issue to the Seller 150,000 shares
      of
      its common stock, par value $0.001 per share (the “VNI Shares”). The Shares and
      the VNI Shares are herein collectively referred to as the
“Securities.”

    

    

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    (ii) Cash
      Price Adjustment. At
      the
      Closing (as hereinafter defined), the Seller shall provide to the Parent a
      working capital certificate (the “Closing Working Capital Certificate”)
      determined in accordance with generally accepted accounting principles (“GAAP”)
      applied consistently with historical procedures, certified by the President,
      Chief Financial Officer or other executive officer of Seller, setting forth
      the
      current assets and current liabilities of the Seller as of the close of business
      on the date immediately prior to the Closing Date (the “Closing Net Working
      Capital”). “Current assets” shall include, but not be limited to (i) cash and
      cash equivalents, (ii) accounts receivable, (iii) inventory (excluding cell
      phones purchased from Sprint, the Sprint support contract which totals
      approximately $2,000,000),
      (iv) prepaid expenses and (v) unbilled revenues. “Current liabilities” shall
      include, but not be limited to (a) accounts payable, (b) advances
      and accrued but unbilled expenses, (c) accrued taxes and (d) unearned revenues.
      Seller may make a distribution of cash to its owners
      immediately prior to the Closing Date to make Closing Net Working Capital equal
      to zero. Prior to the Closing Date, the Seller will make payments to vendors
      and
      suppliers on a basis consistent with historical payment procedures and
      terms.

    

    

    (iii) Within
      fifty (50) business days of Closing the Seller shall deliver to Parent the
      final
      working capital certificate (the “Final Working Capital Certificate”). Seller
      and Parent agree that the Final Working Capital Certificate shall include as
      assets the actual cost of the cell phones purchased from Sprint, the Sprint
      support contract, and the Telecordia contract which cumulatively total
      approximately $2,250,000. Such amount shall be included as assets in the Final
      Working Capital Certificate whether or not they are properly classified as
      long
      term or short term assets in accordance with GAAP. Unless within ten (10)
      business days of delivery of the Final Working Capital Certificate by Seller
      to
      Parent, Seller has received a written objection from Parent, the Final Working
      Capital Certificate shall be considered final. If within ten (10) business
      days
      of delivery of the Final Working Capital Certificate by Seller to Parent, Seller
      receives a written objection
      from Parent, then the Seller and Parent shall attempt to reconcile their
      differences diligently and in good faith and any resolution by
      them
      shall be final, binding and conclusive. If the Seller and the Parent are unable
      to reach a resolution with such effect within ten (10) business days of the
      Parent’s written notice to Seller, the Seller and the Parent shall submit such
      dispute for resolution to an independent accounting
      firm mutually appointed by the Sellers and the Purchaser (the “Independent
      Accounting Firm”), which shall determine and report
      to the
      parties and such report shall be final, binding and conclusive on the parties
      hereto. The fees and disbursements of the Independent Accounting
      Firm shall be shared equally by the Sellers and the Purchaser or as the
      Independent Accounting Firm shall otherwise determine in
      light of
      the bona fides of the disputed positions being taken by the parties. The total
      of the current assets of the Seller, less the current liabilities of the Seller
      as set for the on the Final Working Capital Certificate shall equal the “Final
      Net Working Capital”. If the Final Net Working
      Capital is less than zero, the Cash Price shall be reduced by the amount of
      the
      Final Net Working Capital (the “Shortfall”). Any such amount
      due by Seller shall be paid first from the Escrow Account. Any amount of
      Shortfall which is in excess of the Escrow Account shall be paid
      directly by the Seller. If there is no Shortfall or the Shortfall is less than
      the Escrow Account, the funds remaining in the Escrow Account and
      any
      positive Final Net Working Capital (estimated at approximately $2,250,000)
      shall
      be delivered to the Seller. Any such amount due by
      Parent
      shall be paid to Seller. All such amounts shall be delivered within five (5)
      business days of the date of the Final Working Capital Certificate and the
      parties agree to present instructions to the escrow agent under the Escrow
      Account consistent with the provisions of this Section.

    

    

    

    

    -

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    (iv) In
      addition to the foregoing, in the event any of the accounts receivable of the
      Seller which constitute a portion of the
      Assets
      shall remain uncollected for a period of 90 days or more following the Closing
      Date, the Seller shall pay the full amount of such uncollected account
      receivable to the Parent within five (5) business days of a written request
      for
      payment and Parent shall assign the account receivable to the
      Seller.

    

    1.5.Purchase
      Price Allocation. Parent,
      Acquisition Sub and Seller shall mutually agree on the allocation of the
      Purchase Price. Such
      allocation shall be binding upon Parent, Acquisition Sub and Seller for all
      purposes (including financial accounting purposes, financial
      and
      regulatory reporting purposes and tax purposes). Parent, Acquisition Sub and
      Seller each further agrees to file its Federal income tax returns
      and its other tax returns reflecting such allocation, Form 8594 and any other
      reports required by Section 1060 of the Internal Revenue
      Code of
      1986, as amended (the “Code”).

    

    1.6.Records
      and Contracts. Seller
      shall deliver to Parent and Acquisition Sub all of the Contracts, with such
      assignments thereof
      and consents to assignments as are necessary to assure Parent and Acquisition
      Sub of the full benefit of the same. Seller shall also
      deliver
      to Parent and Acquisition Sub all of Seller’s files and records constituting
      Assets.

    

    1.7.Further
      Assurances. Seller
      shall, from time to time after the consummation of the transactions contemplated
      herein, at the request
      of Parent or Acquisition Sub and without further consideration, execute and
      deliver further instruments of transfer and assignment and
      take
      such other action as Parent or Acquisition Sub may reasonably require to more
      effectively transfer and assign to, and vest in, Parent or Acquisition Sub
      the
      Assets free and clear of all Liens.

    

     1.8.
      Sales and Transfer Taxes. All
      sales, transfer, use, recordation, documentary, stamp, excise taxes, personal
      property taxes, fees
      and
      duties (including any real estate transfer taxes) under applicable law incurred
      in connection with this Agreement or the transactions
      contemplated hereby will be borne and paid by Parent.

    

     1.9.
      Transfer of Subject Assets. Seller
      shall deliver or cause to be delivered to Acquisition Sub good and sufficient
      instruments of transfer transferring to Acquisition Sub title to all of the
      Assets, together with all required consents. Such instruments of transfer (a)
      shall contain appropriate warranties and covenants which are usual and customary
      for transferring the type of property involved under the laws of the
      jurisdictions applicable to such transfers, (b) shall be in form and substance
      reasonably satisfactory to Acquisition Sub and its counsel, (c) shall
      effectively vest in Acquisition Sub good and marketable title to all of the
      Assets free and clear of all Liens (as hereafter defined), and (d)
      where
      applicable, shall be accompanied by evidence of the discharge of all Liens
      against the Assets.

    

    

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    ARTICLE
      II.

    CLOSING
      AND TERMINATION

    

    2.1. Closing
      Date. Subject
      to the satisfaction of the conditions set forth in Sections 6.1 and 6.2 hereof
      (or the waiver thereof by the
      party
      entitled to waive that condition), the closing of the sale and purchase of
      the
      Assets provided for in Section 1.1 hereof (the “Closing”)
      shall
      take place at the offices of Sichenzia Ross Friedman Ference LLP located at
      1065
      Avenue of the Americas, 21st Floor, New York, NY 10018 (or at such other place
      as the parties may mutually agree upon) on August 10, 2005. . The date on which
      the Closing shall be held is referred to in this Agreement as the “Closing
      Date”

    

    2.2.
      Closing Procedures. It
      is
      contemplated that immediately following the Closing, Parent will transfer its
      ownership interest in Acquisition
      Sub to VNI, a Utah corporation and publicly traded entity whose common stock
      is
      registered under Section 12(g) of the Securities Exchange
      Act of 1934, as amended (the “Exchange Act”), pursuant to a Stock Purchase
      Agreement (the “Purchase Agreement”) to be entered
      into
      between Parent and VNI on the Closing Date. By signing this Agreement, VNI
      hereby:

    

    (a) permits
      Seller and the Owners to rely on VNI’s representations and warranties made in
      the Purchase Agreement to the same extent as if they were made
      herein;

     

    (b) agrees
      to
      be bound by the provisions of Section 5.4, 5.6, 5.7, 5.10 and Article VIII
      hereof;

     

    (c) undertakes
      to issue the VNI Shares as set forth in Section 1.4(b);

     

    (d) undertakes
      to issue its shares of common stock upon conversion of the Shares in accordance
      with their terms;

     

    (e) represents
      and warrants that:

     

    (i) the
      VNI
      Shares are duly authorized and, when issued in accordance with this Agreement,
      will be duly and validly issued,
      fully paid and nonassessable, free and clear of all other than restrictions
      on
      transfer provided for under the Securities Act of 1933, as
      amended
      (the “Securities Act”)

    

    (ii) VNI’s
      shares of common stock issuable upon conversion of the Shares (the “Underlying
      Shares”), when issued in accordance
      with the terms of the Certificate of Designation of the Series A Cumulative
      Convertible Preferred Stock, will be validly issued,
      fully
      paid and nonassessable, free and clear of all Liens; and

    (iii) VNI
      has
      reserved from its duly authorized capital stock a sufficient number of shares
      of
      its common stock for issuance of the Underlying Shares; and   

     

         
      (f) unconditionally
      guarantees Acquisition Sub’s obligations under the Promissory Note.
      -6-

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    2.3.
      Termination of Agreement. This
      Agreement may be terminated prior to the Closing as follows:

    

    (a) at
      the
      election of the Seller or the Parent on or after August 10, 2005, if the Closing
      shall not have occurred by the close of business on such date, provided that
      the
      terminating party is not in default of any of its obligations
      hereunder;

    

    (b) by
      the
      Parent if in its reasonable business judgment it becomes impracticable to obtain
      third party financing to complete the transactions contemplated by this
      Agreement;

    

    (c) by
      mutual
      written consent of the Seller and the Parent; or

    

    (d) by
      the
      Seller or the Parent if there shall be in effect a final nonappealable order
      of
      a court, government or governmental agency
      or
      body of competent jurisdiction (“Governmental Body”) of competent jurisdiction
      restraining, enjoining or otherwise prohibiting the
      consummation of the transactions contemplated hereby; it being agreed that
      the
      parties hereto shall promptly appeal any adverse determination which is not
      nonappealable (and pursue such appeal with reasonable diligence).

    

    2.4.
      Procedure Upon Termination. In
      the
      event of termination and abandonment by the Parent or the Seller, or both,
      pursuant to Section 2.2 hereof, written notice thereof shall forthwith be given
      to the other party or parties, and this Agreement shall terminate, and the
      purchase of the Assets hereunder shall be abandoned, without further action
      by
      the Parent or the Seller. If this Agreement is terminated as provided herein
      each party shall redeliver all documents, work papers and other material of
      any
      other party relating to the transactions contemplated hereby, whether so
      obtained before or after the execution hereof, to the party furnishing the
      same.

    

    2.5. Effect
      of Termination. In
      the
      event that this Agreement is validly terminated as provided herein, then each
      of
      the parties shall
      be
      relieved of their duties and obligations arising under this Agreement after
      the
      date of such termination and such termination shall be
      without
      liability to the Parent or the Seller; provided, however, that nothing in this
      Section 2.4 shall relieve the Parent or the Seller of any liability for a breach
      of this Agreement.

     

                                           
      ARTICLE III.

                                              REPRESENTATIONS
      AND WARRANTIES OF THE SELLER AND THE OWNERS

    

    The
      Seller and the Owners, jointly and severally hereby represent and warrant to
      the
      Parent and Acquisition Sub that:

    3.1. Organization
      and Good Standing. The
      Seller is a limited liability partnership duly organized, validly existing
      and
      in good standing under the laws of the jurisdiction of its incorporation as
      set
      forth above and has all requisite partnership power and authority to own, lease
      and operate its properties and to carry on its business as now conducted. The
      Seller is duly qualified or authorized to do business as a foreign partnership
      and is in good standing under the laws of each jurisdiction in which it owns
      or
      leases real property and each other jurisdiction in which the conduct of its
      business or the ownership of its properties requires such qualification or
      authorization, except where failure to be so qualified would not have a material
      adverse effect on the business, assets or financial condition of the Seller
      taken as a whole (“Material
      Adverse Effect”). Pinless is a corporation duly organized, validly existing and
      in good standing under the laws of the jurisdiction of its
      incorporation as set forth above and has all requisite corp[orate power and
      authority to own, lease and operate its properties and to carry on
      its
      business as now conducted. Pinless is duly qualified or authorized to do
      business as a foreign partnership and is in good standing under the laws of
      each
      jurisdiction in which it owns or leases real property and each other
      jurisdiction in which the conduct of its business or the ownership of its
      properties requires such qualification or authorization, except where failure
      to
      be so qualified would not have a Material Adverse Effect

    

    

    

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    3.2. Authorization
      of Agreement. The
      Seller and the Owners have all requisite partnership or personal, as the case
      may be, power, authority and legal capacity to execute and deliver this
      Agreement, and each other agreement, document, or instrument or certificate
      contemplated by this Agreement or to be executed by the Seller or the Owners
      in
      connection with the consummation of the transactions contemplated by this
      Agreement (together with this Agreement, the “Seller Documents”), and to
      consummate the transactions contemplated hereby and thereby. This Agreement
      has
      been, and each of the Seller Documents will be at or prior to the Closing,
      duly
      and validly executed and
      delivered by the Seller or the Owners and (assuming the due authorization,
      execution and delivery by the other parties hereto and thereto)
      this
      Agreement constitutes, and each of the Seller Documents when so executed and
      delivered will constitute, legal, valid and binding obligations of the Seller,
      enforceable against the Seller or the Owners, as applicable, in accordance
      with
      their respective terms, subject to applicable bankruptcy, insolvency,
      reorganization, moratorium and similar laws affecting creditors’ rights and
      remedies generally, and subject, as to enforceability, to general principles
      of
      equity, including principles of commercial reasonableness, good faith and fair
      dealing (regardless of whether enforcement is sought in a proceeding at law
      or
      in equity).

    

    

    3.3. Ownership
      of Seller. The
      Owners collectively own 100% of the partnership interests of the Seller, free
      and clear of any and
      all
      liens, charges or encumbrances or any kind or nature.

    

    3.4. No
      Subsidiaries. The
      Seller has no subsidiaries, except as contemplated by Section 1.1(g)
      hereof.

     

    3.5. Conflicts;
      Consents of Third Parties.

    

    (a) Except
      as
      set forth in Schedule 3.5(a), none of the execution and delivery by the Seller
      or Owners of this Agreement and the Seller Documents, the consummation of the
      transactions contemplated hereby or thereby, or compliance by the Seller with
      any of the provisions hereof or thereof will (i) conflict with, or result in
      the
      breach of, any provision of the partnership certificate or partnership agreement
      of the Seller; (ii) conflict with, violate, result in the breach or termination
      of, or constitute a default under any note, bond, mortgage,
      indenture, license, agreement or other instrument or obligation to which the
      Seller or any Owner is a party or by which any of them
      or any
      of their respective properties or assets is bound; (iii) violate any statute,
      rule, regulation, order or decree of any governmental body or authority by
      which
      the Seller is bound; or (iv) result in the creation of any Lien upon the
      properties or assets of the Seller except, in case of clauses (ii), (iii) and
      (iv), for such violations, breaches or defaults as would not, individually
      or in
      the aggregate, have a Material Adverse Effect.

    

    

    

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

    (b) No
      consent, waiver, approval, order, permit or authorization of, or declaration
      or
      filing with, or notification to, any person or
      Governmental Body is required on the part of the Seller, the Seller in
      connection with the execution and delivery of this Agreement or the Seller
      Documents, or the compliance by the Seller as the case may be, with any of
      the
      provisions hereof or thereof.

    

    3.6. Ownership
      and Transfer of Assets. Seller
      has good and marketable title to all of the Assets free and clear of all
      mortgages, pledges, security interests, charges, liens, restrictions and
      encumbrances of any kind (collectively, “Liens”) whatsoever. Upon the sale,
      assignment, transfer and delivery of the Assets to the Acquisition Sub hereunder
      and under the Seller Documents, there will be vested in the Acquisition Sub
      good, marketable and indefeasible title to the Assets, free and clear of all
      Liens. The Assets include all of the assets and properties (i) held for use
      by
      Seller to conduct the Business as presently conducted and (ii) necessary for
      Acquisition Sub to operate the Business in the same manner as such business
      is
      currently operated by Seller. All of the tangible Assets are in good repair,
      have been well maintained
      and are in good operating condition, do not require any material modifications
      or repairs, and comply in all material respects with
      applicable laws, ordinances and regulations, ordinary wear and tear
      excepted.

    

    3.7. Financial
      Statements. The
      Seller has delivered or caused to be delivered to the Parent copies of (i)
      the
      audited consolidated balance
      sheets of the Seller as at December 31, 2004 and 2003 and the related audited
      consolidated statements of income and of cash flows of
      the
      Seller for the years then ended and (ii) the unaudited but reviewed consolidated
      balance sheet of the Seller as at March 31, 2005 and the related consolidated
      statements of income and cash flows of the Seller for the three-month period
      then ended (such audited and unaudited statements, including the related notes
      and schedules thereto, are referred to herein as the “Seller Financial
      Statements”). Each of the Seller Financial Statements is complete and correct in
      all material respects, will be prepared in accordance with GAAP (subject to
      normal year-end adjustments in the case of the unaudited statements) and in
      conformity with the practices consistently applied by the Seller without
modification
      of the accounting principles used in the preparation thereof and will present
      fairly the financial position, results of operations and cash
      flows of the Seller as at the dates and for the periods indicated. For the
      purposes hereof, the unaudited but reviewed consolidated balance
      sheet of
      the Seller as at March 31, 2005 is referred to as the “Seller Balance Sheet” and
      March 31, 2005 is referred to as the “Seller Balance Sheet Date”.

    

    3.8. No
      Undisclosed Liabilities. The
      Seller has no indebtedness, obligations or liabilities of any kind (whether
      accrued, absolute,
      contingent or otherwise, and whether due or to become due) that would have
      been
      required to be reflected in, reserved against or otherwise described on the
      Seller Balance Sheet or in the notes thereto in accordance with GAAP which
      was
      not fully reflected in, reserved against or otherwise
      described in the Seller Balance Sheet or the notes thereto or was not incurred
      in the ordinary course of business consistent with past
      practice
      since the Seller Balance Sheet Date. Pinless has no material liabilities, taking
      Pinless and the Seller as a whole.

    

    

    

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    3.9.
      Absence of Certain Developments. Except
      as
      expressly contemplated by this Agreement or as set forth on Schedule 3.9, since
      the Seller Balance Sheet Date:

    

    (i) there
      has
      not been an event which had a Material Adverse Effect nor has there occurred
      any
      event which is reasonably likely to result in a Material Adverse
      Effect;

    

    (ii) there
      has
      not been any damage, destruction or loss, whether or not covered by insurance,
      with respect to the property and assets of the Seller having a replacement
      cost
      of more than $50,000 for any single loss or $100,000 for all such
      losses;

    

    (iii) there
      has
      not been any declaration, setting aside or payment of any distribution in
      respect of any partnership interest of
      the
      Seller or any repurchase, redemption or other acquisition by the Seller of
      any
      outstanding partnership, or other ownership interest in, the
      Seller;

    

    (iv) the
      Seller has not awarded or paid any bonuses to employees of the Seller with
      respect to the fiscal year ended 2004, except to the extent accrued on the
      Seller Balance Sheet or entered into any employment, deferred compensation,
      severance or similar agreement
      (nor amended any such agreement) or agreed to increase the compensation payable
      or to become payable by it to any of the Seller’s
      directors, officers, employees, agents or representatives or agreed to increase
      the coverage or benefits available under any severance pay, termination
      pay, vacation pay, company awards, salary continuation for disability, sick
      leave, deferred compensation, bonus or other incentive
      compensation, insurance, pension or other employee benefit plan, payment or
      arrangement made to, for or with such directors, officers, employees, agents
      or
      representatives (other than normal increases in the ordinary course of business
      consistent with past practice and that in the aggregate have not resulted in
      a
      material increase in the benefits or compensation expense of the
      Seller);

    

    

    (v) there
      has
      not been any change by the Seller in accounting or Tax reporting principles,
      methods or policies;

     

    (vi) the
      Seller has not entered into any transaction or Contract or conducted its
      business other than in the ordinary course consistent with past
      practice;

    

    (vii) the
      Seller has not failed to promptly pay and discharge current liabilities except
      where disputed in good faith by appropriate proceedings;

    

    (viii) the
      Seller has not made any loans, advances or capital contributions to, or
      investments in, any Person or paid any fees or expenses to the Seller or any
      Affiliate of the Seller;

    

    (ix) the
      Seller has not mortgaged, pledged or subjected to any Lien any of its assets,
      or
      acquired any assets or sold, assigned, transferred, conveyed, leased or
      otherwise disposed of any assets of the Seller, except for assets acquired
      or
      sold, assigned, transferred, conveyed, leased or otherwise disposed of in the
      ordinary course of business consistent with past practice;

    

    

    

    
      
        
        

      

      
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    (x) the
      Seller has not discharged or satisfied any Lien, or paid any obligation or
      liability (fixed or contingent), except in the ordinary course of business
      consistent with past practice and which, in the aggregate, would not be material
      to the Seller;

    

    (xi) the
      Seller has not canceled or compromised any debt or claim or amended, canceled,
      terminated, relinquished, waived
      or
      released any Contract or right except in the ordinary course of business
      consistent with past practice and which, in the aggregate,
      would
      not be material to the Seller;

    

    (xii) the
      Seller has not made or committed to make any capital expenditures or capital
      additions or betterments in excess of $25,000 individually or $100,000 in the
      aggregate;

    

    (xiii) the
      Seller has not instituted or settled any material legal proceeding;
      and

     

    (xiv) the
      Seller has not agreed to do anything set forth in this Section 3.9.

     

    3.10. Taxes.

    

    (a) Except
      as
      set forth on Schedule 3.10, to the best of the Seller’s knowledge, (A) all Tax
      returns required to be filed by or on behalf
      of
      the Seller have been properly prepared and duly and timely filed with the
      appropriate taxing authorities in all jurisdictions in which
      such Tax
      returns are required to be filed (after giving effect to any valid extensions
      of
      time in which to make such filings), and all such Tax returns
      were true, complete and correct in all material respects; (B) all Taxes payable
      by or on behalf of the Seller or in respect of its income,
      assets
      or operations have been fully and timely paid, and adequate reserves or accruals
      for Taxes have been provided in the Seller Balance Sheet with respect to any
      period for which Tax Returns have not yet been filed or for which Taxes are
      not
      yet due and owing; and (C) the Seller has not executed or filed with the
      Internal Revenue Service (the “IRS”) or any other taxing authority any
      agreement, waiver or other document or arrangement extending or having the
      effect of extending the period for assessment or collection of Taxes (including,
      but not limited
      to, any applicable statute of limitation), and no power of attorney with respect
      to any Tax matter is currently in force. “Tax or Taxes”
      means
      all federal, state, local or other taxes or similar governmental charges, fees,
      levies or assessments.

    

    

    (b) The
      Seller has complied in all material respects with all applicable laws (as
      defined in Section 3.18), rules and regulations relating
      to the payment and withholding of Taxes and has duly and timely withheld from
      employee salaries, wages and other compensation
      and has
      paid over to the appropriate taxing authorities all amounts required to be
      so
      withheld and paid over for all periods under all Laws.

    

    (c) Parent
      has received complete copies of (A) all federal, state, local and foreign income
      or franchise Tax Returns of the Seller relating to the taxable periods since
      2002 and (B) any audit report issued within the last three years relating to
      any
      material Taxes due from or with respect to the its income, assets or operations.
      All income and franchise Tax returns filed by or on behalf of the Seller for
      the
      taxable years
      ended on the respective dates set forth on Schedule 3.10 have been examined
      by
      the relevant taxing authority or the statute of limitations
      with
      respect to such Tax Returns has expired.

    

    

    

    
      
        
        

      

      
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    (d) Schedule
      3.10 lists all material types of Taxes paid and material types of Tax returns
      filed by or on behalf of the Seller. Except as set forth on Schedule 3.10,
      no
      claim has been made by a taxing authority in a jurisdiction where the Seller
      does not file Tax Returns such that it is or may be subject to taxation by
      that
      jurisdiction.

    

    (e) Except
      as
      set forth on Schedule 3.10, all deficiencies asserted or assessments made as
      a
      result of any examinations by the IRS or any other taxing authority of the
      Tax
      Returns of or covering or including the Seller that are owed by the Seller
      have
      been fully paid, and there are no other audits or investigations by any taxing
      authority in progress, nor has the Seller received any written notice from
      any
      taxing authority
      that it intends to conduct such an audit or investigation. No issue has been
      raised in writing by a federal, state, local or foreign taxing
      authority in any current or prior examination which, by application of the
      same
      or similar principles, could reasonably be expected to result in a proposed
      deficiency for any subsequent taxable period.

    

    (f) Except
      as
      set forth on Schedule 3.10, the Seller has not (A) agreed to or is not required
      to make any adjustments pursuant to Section
      48 1(a) of the Code or any similar provision of state, local or foreign law
      by
      reason of a change in accounting method initiated by the Seller
      or
      has any knowledge that the IRS has proposed any such adjustment or change in
      accounting method, or has any application pending with
      any
      taxing authority requesting permission for any changes in accounting methods
      that relate to the business or operations of the Seller,
      (B)
      executed or entered into a closing agreement pursuant to Section 7121 of the
      Code or any predecessor provision thereof or any similar provision
      of state, local or foreign law with respect to the Seller, or (C) requested
      any
      extension of time within which to file any Tax Return,
      which
      Tax Return has since not been filed within the period of
      limitations.

    

    (g) No
      property owned by the Seller is (i) property required to be treated as being
      owned by another Person pursuant to the provisions
      of Section 168(f)(8) of the Internal Revenue Code of 1954, as amended and in
      effect immediately prior to the enactment of the Tax
      Reform
      Act of 1986, (ii) constitutes “tax-exempt use property” within the meaning of
      Section 168(h)(1) of the Code or (iii) is “tax-exempt bond financed property”
      within the meaning of Section 168(g) of the Code.

    

    (h) The
      Seller is not a foreign person within the meaning of Section 1445 of the
      Code.

    

    (i) The
      Seller is not a party to any tax sharing or similar agreement or arrangement
      (whether or not written) pursuant to which it will have any obligation to make
      any payments after the Closing.

    

    (j) There
      is
      no contract, agreement, plan or arrangement covering any person that,
      individually or collectively, could give rise to the
      payment of any amount that would not be deductible by the Parent, the Affiliates
      or their respective affiliates by reason of Section 280G of
      the
      Code, or would constitute compensation in excess of the limitation set forth
      in
      Section 162(m) of the Code.

    

    

    

    
      
        
        

      

      
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    (k) The
      Seller is not subject to any private letter ruling of the IRS or comparable
      rulings of other taxing authorities.

    

    (l) There
      are
      no liens as a result of any unpaid Taxes upon any of the assets of the
      Seller.

     

    (m) Except
      as
      set forth on Schedule 3.10, the Seller has no elections in effect for federal
      income tax purposes under Sections 108, 168, 441, 463, 472, 1017, 1033 or 4977
      of the Code.

    

    (n) The
      Seller has never owned any Subsidiaries and has never been a member of any
      consolidated, combined or affiliated group of corporations for any Tax
      purposes.

    

    3.11. Real
      Property.

     

    (a) Neither
      Seller nor Pinless owns any interest in any real property. Pinless does not
      have
      any real property interests or leases. Schedule
      3.11(a) sets forth a complete list of all real property and interests in real
      property leased by the Seller (individually, a “Real Property
      Lease”
      and the real properties specified in such leases being referred to herein
      individually as a “Seller Property” and collectively as the “Seller Properties”)
      as lessee or lessor. The Seller Property constitutes all interests in real
      property currently used or currently held for use in connection
      with the Business of the Seller and which are necessary for the continued
      operation of the Business of the Seller as the Business is
      currently conducted. The Seller has a valid and enforceable leasehold interest
      under each of the Real Property Leases, subject to applicable bankruptcy,
      insolvency, reorganization, moratorium and similar laws affecting creditors’
      rights and remedies generally and subject, as to enforceability,
      to general principles of equity (regardless of whether enforcement is sought
      in
      a proceeding at law or in equity), and Seller has not
      received any written notice of any default or event that with notice or lapse
      of
      time, or both, would constitute a default by the Seller under any
      of
      the Real Property Leases. All of the Seller Property, buildings, fixtures and
      improvements thereon owned or leased by the Seller are in good
      operating condition and repair (subject to normal wear and tear). The Seller
      has
      delivered or otherwise made available to the Parent true,
      correct
      and complete copies of the Real Property Leases, together with all amendments,
      modifications or supplements, if any, thereto.

    

    

    (b) The
      Seller has all material certificates of occupancy and Permits of any
      Governmental Body necessary or useful for the current use and operation of
      each
      Seller Property, and the Seller has fully complied with all material conditions
      of the Permits applicable to it. No default or violation, or event that with
      the
      lapse of time or giving of notice or both would become a default or violation,
      has occurred in the due observance of any Permit.

    

    (c) There
      does not exist any actual or, to the best knowledge of the Seller, threatened
      or
      contemplated condemnation or eminent domain proceedings that affect any Seller
      Property or any part thereof, and the Seller has not received any notice, oral
      or written, of the intention of any Governmental Body or other Person to take
      or
      use all or any part thereof.

    

    (d) The
      Seller has not received any written notice from any insurance company that
      has
      issued a policy with respect to any Seller Property requiring performance of
      any
      structural or other repairs or alterations to such Seller Property.

    

    

    

    
      
        
        

      

      
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    (e) The
      Seller does not own or hold, and is not obligated under or a party to, any
      option, right of first refusal or other contractual right to purchase, acquire,
      sell, assign or dispose of any real estate or any portion thereof or interest
      therein.

    

    3.12. Tangible
      Personal Property.

    

    (a) Schedule
      3.12(a) sets forth all leases of personal property (“Personal Property Leases”)
      involving annual payments in excess of
      $10,000 relating to personal property used in the business of the Seller or
      Pinless or to which the Seller or Pinless is a party or by which the
      properties or assets of the Seller or Pinless is bound. The Seller and Pinless
      have delivered or otherwise made available to the Parent true, correct and
      complete copies of the Personal Property Leases, together with all amendments,
      modifications or supplements thereto.

    

    (b) The
      Seller and Pinless have a valid leasehold interest under each of the Personal
      Property Leases under which it is a lessee, subject
      to applicable bankruptcy, insolvency, reorganization, moratorium and similar
      laws affecting creditors’ rights and remedies generally
      and
      subject, as to enforceability, to general principles of equity (regardless
      of
      whether enforcement is sought in a proceeding at law or in equity),
      and there is no default under any Personal Property Lease by the Seller, Pinless
      or, to the best knowledge of the Seller or Pinless, by
      any
      other party thereto, and no event has occurred that with the lapse of time
      or
      the giving of notice or both would constitute a default thereunder.

    

    (c) The
      Seller has good and marketable title to all of the items of tangible personal
      property reflected in the Seller Balance Sheet (except
      as sold or disposed of subsequent to the date thereof in the ordinary course
      of
      business consistent with past practice), free and clear of any
      and
      all liens other than as set forth on Schedule 3.12. All such items of tangible
      personal property which, individually or in the aggregate,
      are
      material to the operation of the business of the Seller are in good condition
      and in a state of good maintenance and repair (ordinary wear and tear excepted)
      and are suitable for the purposes used.

    

    (d) All
      of
      the items of tangible personal property used by the Seller under the Personal
      Property Leases are in good condition and repair (ordinary wear and tear
      excepted) and are suitable for the purposes used.

    

    3.13. Intangible
      Property. Schedule
      3.13 contains a complete and correct list of each patent, trademark, trade
      name,
      service mark
      and
      copyright owned or used by the Seller or Pinless as well as all registrations
      thereof and pending applications therefor, and each license or other
      agreement relating thereto. Except as set forth on Schedule 3.13, each of the
      foregoing is owned by the party shown on such Schedule as
      owning
      the same, free and clear of all mortgages, claims, liens, security interests,
      charges and encumbrances and is in good standing and not the
      subject of any challenge. There have been no claims made and neither the Seller
      nor Pinless has received any notice or otherwise knows or
      has
      reason to believe that any of the foregoing is invalid or conflicts with the
      asserted rights of others. The Seller and Pinless each possesses, owns or
      licenses all patents, patent licenses, trade names, trademarks, service marks,
      brand marks, brand names, copyrights, know-how, formulate
      and other proprietary and trade rights necessary for the conduct of its business
      as now conducted, not subject to any restrictions and
      without
      any known conflict with the rights of others and has not forfeited or otherwise
      relinquished any such patent, patent license, trade name,
      trademark, service mark, brand mark, brand name, copyright, know-how, formulate
      or other proprietary right necessary for the conduct
      of its
      business as conducted on the date hereof. Neither the Seller nor Pinless is
      under any obligation to pay any royalties or similar payments in connection
      with
      any license to any Affiliate thereof. As used in this Agreement, “Affiliate”
      means, with respect to any person, any other person directly or indirectly
      controlling, controlled by or under common control with such person and for
      purposes of individuals, Affiliates would include an individual’s spouse and
      minor children.

    

    

    

    

    
      
        
        

      

      
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    3.14. Material
      Contracts. Schedule
      3.14 sets forth all of the following Contracts to which the Seller or Pinless
      is
      a party or by which it is bound (collectively, the “Material Contracts”): (i)
      Contracts with any current officer or director of the Seller or Pinless; (ii)
      Contracts
      with any labor union or association representing any employee of the Seller
      or
      Pinless; (iii) Contracts pursuant to which any party is
      required
      to purchase or sell a stated portion of its requirements or output from or
      to
      another party; (iv) Contracts for the sale of any of the assets of the Seller
      or
      Pinless other than in the ordinary course of business or for the grant to any
      person of any preferential rights to purchase any of its assets; (v) joint
      venture agreements; (vi) material Contracts containing covenants of the Seller
      or Pinless not to compete in any line of business or with any person in any
      geographical area or covenants of any other person not to compete with the
      Seller or Pinless in any line of business or in any geographical area; (vii)
      Contracts relating to the acquisition by the Seller or Pinless of any operating
      business or the capital stock of any other person; (viii) Contracts relating
      to
      the borrowing of money; or (ix) any other Contracts, other than Real Property
      Leases, which involve the expenditure of more than $100,000 in the aggregate
      or
      $50,000 annually or require performance by any party more than one year from
      the
      date hereof. There have been made available to the Parent, its affiliates and
      their representatives true and complete copies of all of the Material Contracts.
      Except as set forth on Schedule 3.14, all of the Material Contracts and other
      agreements are in full force and effect and are the legal, valid and binding
      obligation of the Seller, enforceable against it in accordance with its terms,
      subject to applicable
      bankruptcy, insolvency, reorganization, moratorium and similar laws affecting
      creditors’ rights and remedies generally and subject, as
      to
      enforceability, to general principles of equity (regardless of whether
      enforcement is sought in a proceeding at law or in equity). Except
      as
      set
      forth on Schedule 3.14, the Seller is not in default in any material respect
      under any Material Contracts, nor, to the knowledge of the Seller, is any other
      party to any Material Contract in default thereunder in any material
      respect.

    

    

    

    3.15. Employee
      Benefits.

    (a) Schedule
      3.15(a) sets forth a complete and correct list of (i) all “employee benefit
      plans”, as defined in Section 3(3) of the Employee Retirement Income Security
      Act of 1974, as amended (“ERISA”), and any other pension plans or employee
      benefit arrangements, programs or payroll practices (including, without
      limitation, severance pay, vacation pay, company awards, salary continuation
      for
      disability, sick leave, retirement, deferred compensation, bonus or other
      incentive compensation, stock purchase arrangements or policies,
      hospitalization, medical insurance, life insurance and scholarship programs)
      maintained by the Seller or to which the Seller contributes or is obligated
      to
      contribute thereunder with respect to employees of the Seller (“Employee Benefit
      Plans”) and (ii) all “employee pension plans”, as defined in Section 3(2) of
      ERISA, maintained by the Seller or any trade or business (whether or not
      incorporated) which are under control, or which are treated as a single
      employer, with Seller under Section 414(b), (c), (m) or (o) of the Code (“ERISA
      Affiliate”) or to which the Seller or any ERISA Affiliate contributed or is
      obligated to contribute thereunder (“Pension Plans”). Schedule 3.15(a)
      identifies, in separate categories,
      Employee Benefit Plans or Pension Plans that are (i) subject to Section 4063
      and
      4064 of ERISA (“Multiple Employer Plans”), (ii)
      multiemployer plans (as defined in Section 400 1(a)(3) of ERISA) (“Multiemployer
      Plans”) or (iii) “benefit plans”, within the meaning of Section
      5000(b)(1) of the Code providing continuing benefits after the termination
      of
      employment (other than as required by Section 4980B of
      the Code
      or Part 6 of Title I of ERISA and at the former employee’s or his beneficiary’s
      sole expense).

    

    

    

    

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    (b) Each
      of
      the Employee Benefit Plans and Pension Plans intended to qualify under Section
      401 of the Code (“Qualified Plans”) so
      qualifies and the trusts maintained thereto are exempt from federal income
      taxation under Section 501 of the Code, and, except as disclosed
      on
      Schedule 3.15(b), nothing has occurred with respect to the operation of any
      such
      plan which could cause the loss of such qualification or exemption or the
      imposition of any liability, penalty or tax under ERISA or the
      Code.

    

    (c) All
      contributions and premiums required by Law or by the terms of any Employee
      Benefit Plan or Pension Plan which are money
      purchase plans or any agreement relating thereto have been timely made (without
      regard to any waivers granted with respect thereto)
      to any
      funds or trusts established thereunder or in connection therewith, and no
      accumulated funding deficiencies exist in any of such plans subject to Section
      412 of the Code.

    

    (d) No
      Employee Benefit Plans and Pension Plans are subject to Title IV of
      ERISA.

     

    (e) Each
      of
      the Employee Benefit Plans and Pension Plans has been maintained, in all
      material respects, in accordance with its terms and all provisions of applicable
      Law.

    

    3.16. Labor.

    

    (a) Except
      as
      set forth on Schedule 3.16(a), the Seller is not party to any labor or
      collective bargaining agreement and there are no labor or collective bargaining
      agreements which pertain to employees of the Seller. The Seller has delivered
      or
      otherwise made available to the Parent true, correct and complete copies of
      the
      labor or collective bargaining agreements listed on Schedule 3.16(a), together
      with all amendments, modifications or supplements thereto.

    

    (b) Except
      as
      set forth on Schedule 3.16(b), no employees of the Seller are represented by
      any
      labor organization. No labor organization or group of employees of the Seller
      has made a pending demand for recognition, and there are no representation
      proceedings or petitions seeking a representation proceeding presently pending
      or, to the best knowledge of the Seller, threatened to be brought or filed,
      with
the
      National Labor Relations Board or other labor relations tribunal. There is
      no
      organizing activity involving the Seller pending or, to the best
      knowledge of the Seller, threatened by any labor organization or group of
      employees of the Seller.

    

    (c) There
      are
      no (i) strikes, work stoppages, slowdowns, lockouts or arbitrations or (ii)
      material grievances or other labor disputes pending or, to the best knowledge
      of
      the Seller, threatened against or involving the Seller. There are no unfair
      labor practice charges, grievances or complaints pending or, to the best
      knowledge of the Seller, threatened by or on behalf of any employee or group
      of
      employees of the Seller.

    

    

     

     

    
      
        
        

      

      
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    3.17. Litigation.
      Except
      as
      set forth in Schedule 3.17, there is no suit, action, proceeding, investigation,
      claim or order pending or,
      to the
      knowledge of the Seller, overtly threatened against the Seller or Pinless (or
      to
      the knowledge of the Seller or Pinless, pending or threatened, against any
      of
      the officers, directors or key employees of the Seller with respect to their
      business activities on behalf of the Seller or
      Pinless, or to which the Seller or Pinless is otherwise a party, which, if
      adversely determined, would have a Material Adverse Effect, before
      any
      court, or before any governmental department, commission, board, agency, or
      instrumentality; nor to the knowledge of the Seller or Pinless is there any
      reasonable basis for any such action, proceeding, or investigation. Neither
      the
      Seller nor Pinless is not subject to any judgment, order or decree of any court
      or governmental agency except to the extent the same are not reasonably likely
      to have a Material Adverse Effect and is not engaged in any legal action to
      recover monies due it or for damages sustained by it.

    

    3.18.
      Compliance with Laws; Permits.

    

    (a) The
      Seller and Pinless are each in compliance with all federal, state and local
      statutes, laws, rules, regulations, orders and ordinances
      (“Laws”) applicable to it or to the conduct of its business or operations or the
      use of its properties (including any leased properties)
      and
      assets, except for such non-compliances as would not, individually or in the
      aggregate, have a Material Adverse Effect. The Seller and Pinless have all
      governmental permits and approvals from state, federal or local authorities
      which are required for it to operate its business, except for those the absence
      of which would not, individually or in the aggregate, have a Material Adverse
      Effect.

    

    3.19. Environmental
      Matters. Except
      as
      set forth on Schedule 3.19 hereto:

    

    (a) the
      operations of the Seller are in compliance with all applicable laws promulgated
      by any governmental entity which prohibit, regulate or control any hazardous
      material or hazardous material activity (“Environmental Laws”) and all permits
      issued pursuant to Environmental Laws or otherwise;

    

    (b) the
      Seller has obtained all permits required under all applicable Environmental
      Laws
      necessary to operate its business;

    

    (c) the
      Seller is not the subject of any outstanding written order or Contract with
      any
      governmental authority or person respecting (i) Environmental Laws, (ii)
      Remedial Action or (iii) any release or threatened release of a Hazardous
      Material (“Release”);

    

    (d) the
      Seller has not received any written communication alleging either or both that
      it may be in violation of any Environmental Law, or any permit issued pursuant
      to Environmental Law, or may have any liability under any Environmental
      Law;

    

    (e) the
      Seller does not have any current contingent liability in connection with any
      Release into the indoor or outdoor environment (whether on-site or
      off-site);

    

    

    

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    (f) there
      are
      no investigations of the business, operations, or currently or previously owned,
      operated or leased property of the Seller
      pending or, to the Seller’s knowledge, threatened which could lead to the
      imposition of any liability pursuant to Environmental Law;

    

    (g) to
      the
      Seller’s knowledge, there is not located at any of the properties of the Seller
      any (i) underground storage tanks, (ii) asbestos-containing material or (iii)
      equipment containing polychlorinated biphenyls; and,

    

    (h) the
      Seller has provided to the Parent all environmentally related audits, studies,
      reports, analyses, and results of investigations that have been performed with
      respect to the currently or previously owned, leased or operated properties
      of
      the Seller.

    

    3.20. Insurance.
      Schedule
      3.20 sets forth a complete and accurate list of all policies of insurance of
      any
      kind or nature covering the Seller, Pinless or any of their employees,
      properties or assets, including, without limitation, policies of life,
      disability, fire, theft, workers compensation, employee fidelity and other
      casualty and liability insurance. All such policies are in full force and
      effect, and, to the Seller’s knowledge,
      it is not in default of any provision thereof, except for such defaults as
      would
      not, individually or in the aggregate, have a Material
      Adverse
      Effect.

    

    3.21. Inventories;
      Receivables; Payables.

     

    (a) The
      inventories of the Seller and Pinless are in good and marketable condition,
      and
      are saleable in the ordinary course of

    business.

    

    (b) All
      accounts receivable of the Seller and Pinless have arisen from bona fide
      transactions in the ordinary course of business consistent with past practice.
      All accounts receivable of the Seller reflected on the Seller Balance Sheet
      are
      good and collectible at the aggregate recorded amounts thereof, net of any
      applicable reserve for returns or doubtful accounts reflected thereon, which
      reserves are adequate and were calculated in a manner consistent with past
      practice and in accordance with GAAP consistently applied. All accounts
receivable
      arising after the Seller Balance Sheet Date are good and collectible at the
      aggregate recorded amounts thereof, net of any applicable
      reserve
      for returns or doubtful accounts, which reserves are adequate and were
      calculated in a manner consistent with past practice and in accordance with
      GAAP
      consistently applied. The parties agree and acknowledge that Buyer’s sole remedy
      for a breach of this representation and warranty shall be to require Seller
      to
      repurchase uncollected accounts receivable as per Section 1 .4(b)(ii)
      hereof.

    

    

    (c) All
      accounts payable of the Seller reflected in the Seller Balance Sheet or arising
      after the date thereof are the result of bona fide transactions in the ordinary
      course of business and have been paid or are not yet due and
      payable.

    

    

     

    

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     3.22.
      Customers and Suppliers. Schedule
      3.22 sets forth a list of the twenty (20) largest customers and the twenty
      (20)
      largest suppliers
      of the Seller, as measured by the dollar amount of purchases therefrom or
      thereby, during each of the fiscal years ended 2004 and
      2003,
      showing the approximate total sales by the Seller to each such customer and
      the
      approximate total purchases by the Seller from each such supplier, during such
      period. Since the Seller Balance Sheet Date, there has not been any material
      adverse change in the business

    relationship
      of the Seller with any customer or supplier listed on Schedule
      3.22.

    

     3.23.
      Banks. Schedule
      3.23 contains a complete and correct list of the names and locations of all
      banks in which the Seller or Pinless
      has accounts or safe deposit boxes and the names of all persons authorized
      to
      draw thereon or to have access thereto. Except as set
      forth on
      Schedule 3.24, no person holds a power of attorney to act on behalf of the
      Seller or Pinless.

    

    3.24.No
      Misrepresentations. No
      representation or warranty of the Seller contained in this Agreement or in
      any
      schedule hereto
      or in
      any certificate or other instrument furnished by the Seller to the Parent
      pursuant to the terms hereof, taken as a whole, contains any untrue statement
      of
      a material fact or omits to state a material fact necessary to make the
      statements contained herein or therein not misleading.

    

     3.25.
      Financial Advisors. Except
      for Citigroup Geneva Capital Strategies, no Person has acted, directly or
      indirectly, as a broker, finder or financial advisor for the Seller in
      connection with the transactions contemplated by this Agreement and no Person
      is
      entitled to any fee or commission or like payment in respect
      thereof.

    

    3.26.Investment
      Intention. The
      Seller is acquiring the Securities for its own account, for investment purposes
      only and not with a
      view to
      the distribution (as such term is used in Section 2(11) of the Securities Act
      of
      1933. The Seller understands that the Securities have not
      been
      registered under the Securities Act and cannot be sold unless subsequently
      registered under the Securities Act or an exemption from
      such
      registration is available.

    

    3.27.Accredited
      Investor. The
      Seller is an “accredited investor” within the meaning of Rule 501 promulgated
      under the Securities
      Act. The Seller is in a financial position to hold the Securities and is able
      to
      bear the economic risk and withstand a complete loss of
      the
      Seller’s investment in the Securities. The Seller recognizes that the Securities
      involve a high degree of risk. The Seller is a sophisticated investor, is able
      to fend for itself in the transaction contemplated by this Agreement, and has
      such knowledge and experience in financial and business matters that the Seller
      is capable of evaluating the merits and risks of the prospective investment
      in
      the Securities.

    

    3.28.Patriot
      Act. The
      Seller certifies that, to the best of the Seller’s knowledge, the Seller has not
      been designated, and is not owned
      or
      controlled, by a “suspected terrorist” as defined in Executive Order 13224. The
      Seller hereby acknowledges that the Parent seeks to
      comply
      with all applicable Laws concerning money laundering and related activities.
      In
      furtherance of those efforts, the Seller hereby represents,
      warrants and agrees that: (i) none of the cash or property owned by the Seller
      has been or shall be derived from, or related to, any
      activity
      that is deemed criminal under United States law; and (ii) no contribution or
      payment by the Seller has, and this Agreement will not, cause the Seller to
      be
      in violation of the United States Bank Secrecy Act, the United States
      International Money Laundering Control Act of 1986 or the United States
      International Money Laundering Abatement and Anti-Terrorist Financing Act of
      2001.

    

    

    

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV.

    REPRESENTATIONS
      AND WARRANTIES OF

    PURCHASER
      AND ACQUISITION SUB

    

    The
      Parent and the Acquisition Sub jointly and severally represent and warrant
      that:

     

    4.1.
      Organization and Good Standing.

     

    (a) The
      Parent is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Delaware; and

    

    (b) Acquisition
      Sub is a corporation duly incorporated and validly existing and in good standing
      under the laws of the State of Delaware.

    

    4.2.
      Authorization of Agreement.

    (a) The
      Parent and the Acquisition Sub have full corporate power and authority to
      execute and deliver this Agreement, the Employment Agreement and each other
      agreement, document, instrument or certificate contemplated by this Agreement
      or
      to be executed by the Parent in connection with the consummation of the
      transactions contemplated hereby and thereby (together with the Employment
      Agreement, the “Parent Documents”), and to consummate the transactions
      contemplated hereby and thereby. The execution, delivery and performance by
      the
      Parent and Acquisition Sub of this Agreement and each Parent Document have
      been
      duly authorized by all necessary corporate action on behalf of the Parent and
      Acquisition Sub. This Agreement has been, and each Parent Document will be
      at or
      prior to the Closing,
      duly executed and delivered by the Parent and (assuming the due authorization,
      execution and delivery by the other parties hereto and
      thereto)
      this Agreement constitutes, and each Parent Document when so executed and
      delivered will constitute, legal, valid and binding obligations of the Parent
      and Acquisition Sub, enforceable against the Parent and Acquisition Sub in
      accordance with their respective terms, subject to applicable bankruptcy,
      insolvency, reorganization, moratorium and similar laws affecting creditors’
      rights and remedies generally, and
      subject, as to enforceability, to general principles of equity, including
      principles of commercial reasonableness, good faith and fair dealing
      (regardless of whether enforcement is sought in a proceeding at law or in
      equity).

     

    (b) Acquisition
      Sub has the corporate power, capacity and authority to enter into and complete
      this Agreement; 

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    4.3. Conflicts;
      Consents of Third Parties.

    

    (a) Except
      as
      set forth on Schedule 4.3 hereto, neither of the execution and delivery by
      the
      Parent or Acquisition Sub of the Parent Documents, nor the compliance by the
      Parent Acquisition Sub with any of the provisions hereof or thereof will (i)
      conflict with, or result in the breach of, any provision of the certificate
      of
      incorporation, or certificate of formation, or by-laws, or limited liability
      company agreement of the Parent or Acquisition Sub, respectively, (ii) conflict
      with, violate, result in the breach of, or constitute a default under any note,
      bond, mortgage, indenture, license, agreement or other obligation to which
      the
      Parent or Acquisition Sub is a party or by which the Parent, Acquisition Sub
      or
      their respective properties or assets are bound or (iii) violate any statute,
      rule, regulation, order or decree of any governmental body or authority by
      which
      the Parent or Acquisition Sub is bound, except, in the case of clauses (ii)
      and
      (iii), for such violations, breaches or defaults as would not, individually
      or
      in the aggregate, have a material adverse effect on the business, properties,
      results of operations, prospects, conditions (financial or otherwise) of the
      Parent and its subsidiaries, taken as a whole.

    

    

    (b) No
      consent, waiver, approval, order, permit or authorization of, or declaration
      or
      filing with, or notification to, any Person or Governmental Body is required
      on
      the part of the Parent in connection with the execution and delivery of this
      Agreement or the Parent Documents or the compliance by Parent with any of the
      provisions hereof or thereof.

    

    4.4. Litigation.
      There
      are
      no Legal Proceedings pending or, to the best knowledge of the Parent, threatened
      that are reasonably
      likely
      to prohibit or restrain the ability of the Parent or Acquisition Sub to enter
      into this Agreement or consummate the transactions contemplated
      hereby.

    

    4.5.
      Financial Advisors. No
      person
      has acted, directly or indirectly, as a broker, finder or financial advisor
      for
      the Parent in connection
      with the transactions contemplated by this Agreement and no person is entitled
      to any fee or commission or like payment in
      respect
      thereof.

    

    4.6. Patriot
      Act. The
      Parent certifies that, to the best of the Parent’s knowledge, the Parent has not
      been designated, and is not owned
      or
      controlled, by a “suspected terrorist” as defined in Executive Order 13224. The
      Parent hereby acknowledges that the Seller seeks to
      comply
      with all applicable Laws concerning money laundering and related activities.
      In
      furtherance of those efforts, the Parent hereby represents,
      warrants and agrees that: (i) none of the cash or property owned by the Seller
      has been or shall be derived from, or related to, any activity
      that is deemed criminal under United States law; and (ii) no contribution or
      payment by the Parent has, and this Agreement will not,
      cause
      the Parent to be in violation of the United States Bank Secrecy Act, the United
      States International Money Laundering Control Act of 1986 or the United States
      International Money Laundering Abatement and Anti-Terrorist Financing Act of
      2001.

    

    4.7.
      No Knowledge of Breaches. Parent
      does not have actual knowledge of any breach of any representation and warranty
      made by Seller and the Owners hereunder.

    

    

    

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    ARTICLE
      V. 

    COVENANTS

    

    5.1. Access
      to Information. The
      Seller and Owners agree that, prior to the Closing Date, the Parent shall be
      entitled, through its officers, employees and representatives (including,
      without limitation, its legal advisors and accountants), to make such
      investigation of the properties, businesses and operations of the Seller and
      such examination of the books, records and financial condition of the Seller
      as
      it reasonably requests and to make extracts and copies of such books and
      records. Any such investigation and examination shall be conducted during
      regular business hours and under reasonable circumstances, and the Seller shall
      cooperate fully therein. No investigation by the Parent
      prior to
      or after the date of this Agreement shall diminish or obviate any of the
      representations, warranties, covenants or agreements of the Seller contained
      in
      the Seller Documents. In order that the Parent may have full opportunity to
      make
      such physical, business, accounting and legal review, examination or
      investigation as it may reasonably request of the affairs of the Seller, Seller
      shall cause its officers, employees, consultants, agents, accountants, attorneys
      and other representatives to cooperate fully with such representatives in
      connection with such review and examination.

    

    

    5.2. Conduct
      of the Business Pending the Closing.

     

    (a) Except
      as
      otherwise expressly contemplated by this Agreement or with the prior written
      consent of the Parent, the Seller shall:

    

    (i) conduct
      its business only in the ordinary course consistent with past
      practice;

     

    (ii) use
      its
      best efforts to (A) preserve its present business operations, organization
      (including, without limitation, management
      and the sales force) and goodwill and (B) preserve its present relationship
      with
      Persons having business dealings with it;

    

    (iii) maintain
      (A) all of its assets and properties in their current condition, ordinary wear
      and tear excepted and (B) insurance
      upon all of its properties and assets in such amounts and of such kinds
      comparable to that in effect on the date of this Agreement;

    

    (iv) (A)
      maintain its books, accounts and records in the ordinary course of business
      consistent with past practices, (B) continue
      to collect accounts receivable and pay accounts payable utilizing normal
      procedures and without discounting or accelerating payment
      of such
      accounts, and (C) comply with all contractual and other obligations applicable
      to its operation; and

    

    (v) comply
      in
      all material respects with applicable Laws.

     

    (b) Except
      as
      otherwise expressly contemplated by this Agreement or with the prior written
      consent of the Parent, the Seller shall not:

    

    (i)
      except
      for trade payables and for indebtedness for borrowed money incurred in the
      ordinary course of business and consistent
      with past practice, borrow monies for any reason or draw down on any line of
      credit or debt obligation, or become the guarantor,
      surety,
      endorser or otherwise liable for any debt, obligation or liability (contingent
      or otherwise) of any other Person;

    

    

     

    

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    (ii) subject
      to any Lien (except for liens that do not materially impair the use of the
      property subject thereto in their respective businesses as presently conducted),
      any of its properties or assets (whether tangible or intangible);

    

    (iii) acquire
      any material properties or assets or sell, assign, transfer, convey, lease
      or
      otherwise dispose of any of its material properties or assets (except for fair
      consideration in the ordinary course of business consistent with past
      practice);

    

    (iv) cancel
      or
      compromise any debt or claim or waive or release any material right except
      in
      the ordinary course of business consistent with past practice;

    

    (v) enter
      into any commitment for capital expenditures in excess of $25,000 for any
      individual commitment and $100,000 for all commitments in the
      aggregate;

    

    (vi) introduce
      any material change with respect to its operation, including any material change
      in the types, nature, composition
      or quality of its products or services, experience any material change in any
      contribution of its product lines to its revenues or net income,
      or, other than in the ordinary course of business, make any change in product
      specifications or prices or terms of distributions of such
      products;

    

    (vii) enter
      into any transaction or make or enter into any Contract which by reason of
      its
      size or otherwise is not in the ordinary course of business consistent with
      past
      practice;

    

    (viii) enter
      into or agree to enter into any merger or consolidation with, any corporation
      or
      other entity, and not engage in any new business or invest in, make a loan,
      advance or capital contribution to, or otherwise acquire the securities of
      any
      other Person;

    

    (ix) except
      for transfers of cash pursuant to normal cash management practices, make any
      investments in or loans to, or pay any fees or expenses to, or enter into or
      modify any Contract with any Affiliate; or

    

    (x) agree
      to
      do anything prohibited by this Section 5.2 or anything which would make any
      of
      the representations and warranties of the Seller in this Agreement or the Seller
      Documents untrue or incorrect in any material respect as of any time through
      and
      including the Effective Time.

    

    5.3. Consents.
      The
      Seller shall use its best efforts, and the Parent shall cooperate with the
      Seller, to obtain at the earliest practicable date all consents and approvals
      required to consummate the transactions contemplated by this Agreement,
      including, without limitation,
      the consents and approvals referred to in Section 3.5(b) hereof; provided,
      however, that neither the Seller nor the Parent shall be
      obligated to pay any consideration therefor to any third party from whom consent
      or approval is requested.

    

    

     

    

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     5.4.
      Other Actions. Each
      of
      the Seller, Owners, Parent and Acquisition Sub shall use its best efforts to
      (i)
      take all actions necessary or appropriate to consummate the transactions
      contemplated by this Agreement and (ii) cause the fulfillment at the earliest
      practicable
      date of all of the conditions to their respective obligations to consummate
      the
      transactions contemplated by this Agreement.

    

    5.5.No
      Solicitation. The
      Seller will not, and will not cause or permit any of its partners, officers,
      employees, representatives or agents (collectively, the “Representatives”) to,
      directly or indirectly, (i) discuss, negotiate, undertake, authorize, recommend,
      propose or enter into, either as the proposed surviving, merged, acquiring
      or
      acquired corporation, any transaction involving a merger, consolidation,
      business combination, purchase or disposition of any amount of the assets or
      capital stock or other equity interest in it other than the transactions
      contemplated by this Agreement (an “Acquisition Transaction”), (ii) facilitate,
      encourage, solicit or initiate discussions, negotiations or submissions of
      proposals or offers in respect of an Acquisition Transaction, (iii) furnish
      or
      cause to be furnished, to any Person, any information concerning its business,
      operations, properties or assets in connection with an Acquisition Transaction,
      or (iv) otherwise cooperate
      in any way with, or assist or participate in, facilitate or encourage, any
      effort or attempt by any other Person to do or seek any of the
      foregoing. The Seller will inform the Parent in writing immediately following
      the receipt by the Seller or any Representative of any proposal or inquiry
      in
      respect of any Acquisition Transaction.

    

    

    5.6.Preservation
      of Records. The
      Seller, Owners, the Parent and Acquisition Sub agree that each of them shall
      preserve and keep the records held by it relating to the business of the Seller
      for a period of three years from the Closing Date (six years with respect to
      tax
      related records) and shall make such records and personnel available to the
      other as may be reasonably required by such party in connection with, among
      other things, preparation of financial statements, disclosure of information
      to
      the Securities and Exchange Commission, stock exchange or similar entity, any
      insurance claims by, legal proceedings against or governmental investigations
      of
      the Seller, the Parent or Acquisition Sub or any of their Affiliates or in
      order
      to enable the Seller, the Parent or Acquisition Sub to comply with their
      respective obligations under this Agreement, the Employment Agreements and
      each
      other agreement, document or instrument contemplated hereby or thereby. In
      the
      event the Seller, the Parent or Acquisition Sub wishes to destroy such records
      after that time, such party shall first give ninety (90)
      days
      prior written notice to the other and such other party shall have the right
      at
      its option and expense, upon prior written notice given to such
      party within that ninety (90) day period, to take possession of the records
      within one hundred and eighty (180) days after the date of such
      notice.

    

    

    5.7.Publicity.
      Neither
      the Seller, the Parent nor the Acquisition Sub shall issue any press release
      or
      public announcement concerning this Agreement or the transactions contemplated
      hereby without obtaining the prior written approval of the other party hereto,
      which approval will not be unreasonably withheld or delayed, unless, in the
      sole
      judgment of the Parent or the Seller, disclosure is otherwise required
      by applicable Law or by the applicable rules of any stock exchange on which
      the
      Parent or the Seller lists securities, provided that, to
      the
      extent required by applicable Law, the party intending to make such release
      shall use its best efforts consistent with such applicable Law to consult with
      the other party with respect to the text thereof.

    

    

    

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    5.8.
      Use of Name. The
      Seller hereby agrees that upon the consummation of the transactions contemplated
      hereby, the Parent and Acquisition
      Sub shall have the sole right to the use of the name “Oblio Telecom” and
      variations thereof and the Seller shall not, and shall not
      cause or
      permit any Affiliate to use such name or any variation or simulation
      thereof.

    

    5.9.
      Employment Agreements. The
      Owners hereby agree that, on or prior to the Closing Date, the Owners shall
      execute and deliver
      to Parent and Acquisition Sub employment agreements, substantially in the form
      of Exhibit B hereto (the “Employment Agreements”).

    

    5.10. Financing
      Terms. In
      order
      to obtain the funds necessary to pay the Cash Price to the Seller, the Parent
      agrees not to sell
      Common
      Stock or securities convertible into Common Stock at an effective price below
      $3.00 per share.

    

    ARTICLE
      VI.

    CONDITIONS
      TO CLOSING

    

    6.1. Conditions
      Precedent to Obligations of Parent and Acquisition Sub. The
      obligation of the Parent and Acquisition Sub to
      consummate the transactions contemplated by this Agreement is subject to the
      fulfillment, on or prior to the Closing Date, of each of the following
      conditions (any or all of which may be waived by the Parent in whole or in
      part
      to the extent permitted by applicable Law):

    

    (a) all
      representations and warranties of the Seller and Owners contained herein shall
      be true and correct as of the date hereof;

     

    (b) all
      representations and warranties of the Seller contained herein qualified as
      to
      materiality shall be true and correct, and the representations
      and warranties of the Seller contained herein not qualified as to materiality
      shall be true and correct in all material respects, at
      and as
      of the Closing Date with the same effect as though those representations and
      warranties had been made again at and as of that time;

    

    (c) the
      Seller shall have performed and complied in all material respects with all
      obligations and covenants required by this Agreement to be performed or complied
      with by it on or prior to the Closing Date;

    

    (d) the
      Parent shall have been furnished with certificates (dated the Closing date
      and
      in form and substance reasonably satisfactory to the Parent) executed by the
      Seller certifying as to the fulfillment of the conditions specified in Sections
      6.1(a), 6.1(b) and 6.1(c) hereof;

    

    (e) the
      Parent shall have obtained all consents and waivers referred to in Section
      4.3
      hereof with respect to the transactions contemplated by this Agreement and
      the
      Parent Documents;

     
              
    (f)  there shall not have been or occurred any event which will have 
    a Material Adverse Effect;
    

                                                                                                                                                                  

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

    (g) the
      Seller shall have obtained all consents and waivers referred to in Section
      3.5
      hereof, in a form reasonably satisfactory to the Parent, with respect to the
      transactions contemplated by this Agreement and the Seller
      Documents;

    

    (h) no
      Legal
      Proceedings shall have been instituted or threatened or claim or demand made
      against the Seller or the Parent seeking to restrain or prohibit or to obtain
      substantial damages with respect to the consummation of the transactions
      contemplated hereby, and there shall not be in effect any order by a
      Governmental Body of competent jurisdiction restraining, enjoining or otherwise
      prohibiting the consummation of the transactions contemplated
      hereby;

    

    (i) the
      Owners shall have entered into the Employment Agreements with the Parent,
      substantially in the form of Exhibit B hereto;

     

    (j) the
      Parent shall have obtained the financing required to consummate the transaction
      contemplated hereunder on terms reasonably satisfactory to it; and

    

    (k) the
      Parent shall have received disclosure schedules required pursuant to Article
      3
      hereof, which shall be reasonably satisfactory to the Parent.

    

    6.2.
      Conditions Precedent to Obligations of the Seller and Owners.
The
      obligations of the Seller and Owners to consummate the transactions contemplated
      by this Agreement are subject to the fulfillment, prior to or on the Closing
      Date, of each of the following conditions (any or all of which may be waived
      by
      the Seller in whole or in part to the extent permitted by applicable
      law):

    

    (a) all
      representations and warranties of the Parent and Acquisition Sub contained
      herein shall be true and correct as of the date hereof;

    

    (b) all
      representations and warranties of the Parent and Acquisition Sub contained
      herein qualified as to materiality shall be true and correct, and all
      representations and warranties of the Parent and Acquisition Sub contained
      herein not qualified as to materiality shall be true
      and
      correct in all material respects, at and as of the Closing Date with the same
      effect as though those representations and warranties had
      been
      made again at and as of that date;

    

    (c) the
      Parent and Acquisition Sub shall have performed and complied in all material
      respects with all obligations and covenants required by this Agreement to be
      performed or complied with by Parent and Acquisition Sub on or prior to the
      Closing Date;

    

    (d) the
      Seller shall have been furnished with certificates (dated the Closing Date
      and
      in form and substance reasonably satisfactory to the Seller) executed by the
      Chief Executive Officer and Chief Financial Officer of the Parent and the
      Acquisition Sub certifying as to the fulfillment of the conditions specified
      in
      Sections 6.2(a), 6.2(b) and 6.2(c), and resolutions of the Board of Directors
      of
      the Parent and Acquisition Sub authorizing the acquisition of the
      Seller;

    

    (e) there
      shall not be in effect any order by a Governmental Body of competent
      jurisdiction restraining, enjoining or otherwise prohibiting the consummation
      of
      the transactions contemplated hereby; and

    

    

    

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        
                
        (f) the Parent and Acquisition Sub shall have entered into the
        Employment Agreements, substantially in the form of Exhibit B

    

    hereto.

    ARTICLE
      VII.

    DOCUMENTS
      TO BE DELIVERED

    

    7.1. Documents
      to be Delivered by the Seller. At
      the
      Closing, the Seller shall deliver, or cause to be delivered, to the Parent
      and
      Acquisition Sub the following:

    

    (a) the
      opinion of Jackson Walker L.L.P., counsel to the Seller, in a mutually
      acceptable form;

     

    (b) copies
      of
      all consents and waivers referred to in Section 6.1(g) hereof;

     

    (c) Employment
      Agreements, substantially in the form of Exhibit B hereto, duly executed;
      and

    

    (d) such
      other documents as the Parent and Acquisition Sub shall reasonably
      request.

     

    7.2. Documents
      to be Delivered by the Parent. At
      the
      Closing, the Parent and Acquisition Sub shall deliver to the Seller
      the
      following:

    

    (a) evidence
      of the wire transfer referred to in Section 1.4(b) hereof;

     

    (b) the
      Shares

    

    (c) the
      Promissory Note

     

    (d) on
      behalf
      of VNI, the VNI Shares;

    

    (e) the
      certificates and resolutions referred to in Section 6.2(d) hereof;

     

    (f) the
      opinion of Sichenzia Ross Friedman Ference LLP, counsel to the Parent and
      Acquisition Sub, in a mutually acceptable form;

    

    (g) a
      Registration Rights Agreement in a mutually acceptable form; and

     

    (h) such
      other documents as the Seller shall reasonably request.

     

    ARTICLE
      VIII.

    INDEMNIFICATION

    

    8.1. Indemnification.

    

    (a) Subject
      to Section 8.2 hereof, the Seller and the Owners hereby agree to indemnify
      and
      hold the Parent, Acquisition Sub and
      their
      respective directors, officers, employees, Affiliates, agents, successors and
      assigns (collectively, the “Parent Indemnified Parties”) harmless from and
      against:

    

    

     

    

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    (i) any
      and
      all liabilities of the Seller of every kind, nature and description, absolute
      or
      contingent, existing as against the Seller prior to and including the Closing
      Date or thereafter coming into being or arising by reason of any state of facts
      existing, or any transaction entered into, on or prior to the Closing Date,
      except to the extent that the same have been fully provided for (and accrued
      and
      applied as a liability) in the Parent Balance Sheet or were incurred in the
      ordinary course of business between the Parent Balance Sheet Date and the
      Closing Date;

    

    (ii) subject
      to Section 9.3, any and all losses, liabilities, obligations, damages, costs
      and
      expenses based upon, attributable to or resulting from the failure of any
      representation or warranty of the Seller set forth in Section 3 hereof, or
      any
      representation or warranty contained in any certificate delivered by or on
      behalf of the Seller pursuant to this Agreement, to be true and correct in
      all
      respects as of the date made;

    

    (iii) any
      and
      all losses, liabilities, obligations, damages, costs and expenses based upon,
      attributable to or resulting from the breach of any covenant or other agreement
      on the part of the Seller under this Agreement;

    

    (iv) any
      and
      all notices, actions, suits, proceedings, claims, demands, assessments,
      judgments, costs, penalties and expenses, including attorneys’ and other
      professionals’ fees and disbursements (collectively, “Expenses”) incident to any
      and all losses, liabilities,
      obligations, damages, costs and expenses with respect to which indemnification
      is provided hereunder (collectively, “Losses”).

    

    (b) Subject
      to Section 8.2, Parent and Acquisition Sub hereby agree to indemnify and hold
      the Seller, the Owners and their
      Affiliates, agents, successors and assigns (collectively, the “Seller
      Indemnified Parties”) harmless from and against:

    

    (i) subject
      to Section 9.3, any and all Losses based upon, attributable to or resulting
      from
      the failure of any representation or warranty of the Parent and Acquisition
      Sub
      set forth in Section 4 hereof, or any representation or warranty contained
      in
      any certificate delivered by or on behalf of the Parent pursuant to this
      Agreement, to be true and correct as of the date made;

    

    (ii) any
      and
      all Losses based upon, attributable to or resulting from the breach of any
      covenant or other agreement on the part of the Parent and Acquisition Sub under
      this Agreement;

    

    (iii) any
      and
      all Losses of the Parent or Acquisition Sub of every kind, nature and
      description, absolute or contingent, existing
      as against the Parent or Acquisition Sub after the Closing Date coming into
      being or arising by reason of any state of facts existing, or
      any
      transaction entered into, after the Closing Date, except for (A) such Losses
      for
      which Seller and the Owners have an obligation to indemnify
      the Parent Indemnified Parties pursuant to Section 8.1 and (B) such Losses
      that
      affect all shareholders of Parent or Acquisition Sub
      by
      virtue of their status as shareholders; and

    

    

    

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    (iv) any
      and
      all Expenses incident to the foregoing.

     

    8.2. Limitations
      on Indemnification. An
      indemnifying party shall not have any liability under Section 8. 1(a)(ii) or
      Section 8.1(b)
      (i)
      hereof unless the aggregate amount of Losses and Expenses to the indemnified
      parties finally determined to arise thereunder based upon, attributable to
      or
      resulting from the failure of any representation or warranty to be true and
      correct, exceeds $100,000 (the “Basket”) and, in such event, the indemnifying
      party shall be required to pay the entire amount of such Losses and Expenses
      in
      excess of $100,000 (the “Deductible”). Notwithstanding anything herein to the
      contrary, no Owner shall be responsible for more than 50% of the amount of
      Losses or Expenses due to the Parent Indemnified Parties hereunder. In no event
      shall the aggregate liability for indemnification hereunder exceed (A)
      $21,000,000 cash (less any adjustments pursuant to Section 1 .4(b)(2)) and
      the
      Stated Value of the Shares (it being understood that Seller or Owners, as the
      case may be, may forfeit shares in lieu of paying an amount equal to the Stated
      Value thereof, after the payment of $21,000,000 in cash) with respect to
      Seller’s and Owners’ liability, and (B) $9,000,000 with respect to Parent’s and
      Acquisition Sub’s liability.

    

    

    8.3. Indemnification
      Procedures.

    

    (a) In
      the
      event that any Legal Proceedings shall be instituted or that any claim or demand
      (“Claim”) shall be asserted by any Person
      in
      respect of which payment may be sought under Section 8.1 hereof (regardless
      of
      the Basket or the Deductible referred to above), the
      indemnified party shall reasonably and promptly cause written notice of the
      assertion of any Claim of which it has knowledge which is covered by this
      indemnity to be forwarded to the indemnifying party. The indemnifying party
      shall have the right, at its sole option and expense, to be represented by
      counsel of its choice, which must be reasonably satisfactory to the indemnified
      party, and to defend against, negotiate, settle or otherwise deal with any
      Claim
      which relates to any Losses indemnified against hereunder. If the indemnifying
      party elects to
      defend
      against, negotiate, settle or otherwise deal with any Claim which relates to
      any
      Losses indemnified against hereunder, it shall within
      five (5)
      days (or sooner, if the nature of the Claim so requires) notify the indemnified
      party of its intent to do so. If the indemnifying party elects
      not to defend against, negotiate, settle or otherwise deal with any Claim which
      relates to any Losses indemnified against hereunder, fails
      to
      notify the indemnified party of its election as herein provided or contests
      its
      obligation to indemnify the indemnified party for such Losses under this
      Agreement, the indemnified party may defend against, negotiate, settle or
      otherwise deal with such Claim. If the indemnified party defends any Claim,
      then
      the indemnifying party shall reimburse the indemnified party for the Expenses
      of
      defending such Claim upon submission of periodic bills. If the indemnifying
      party shall assume the defense of any Claim, the indemnified party may
      participate, at his or its own expense, in the defense of such Claim; provided,
      however, that such indemnified party shall be entitled to participate in any
      such defense
      with separate counsel at the expense of the indemnifying party if, (i) so
      requested by the indemnifying party to participate or (ii) in the
      reasonable opinion of counsel to the indemnified party, a conflict or potential
      conflict exists between the indemnified party and the indemnifying party that
      would make such separate representation advisable; and provided, further, that
      the indemnifying party shall not be required
      to pay for more than one such counsel for all indemnified parties in connection
      with any Claim. The parties hereto agree to cooperate
      fully
      with each other in connection with the defense, negotiation or settlement of
      any
      such Claim.

    

    

    

    

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

    (b) After
      any
      final judgment or award shall have been rendered by a court, arbitration board
      or administrative agency of competent
      jurisdiction and the expiration of the time in which to appeal therefrom, or
      a
      settlement shall have been consummated, or the indemnified
      party and the indemnifying party shall have arrived at a mutually binding
      agreement with respect to a Claim hereunder, the indemnified
      party shall forward to the indemnifying party notice of any sums due and owing
      by the indemnifying party pursuant to this
      Agreement with respect to such matter and the indemnifying party shall be
      required to pay all of the sums so due and owing to the indemnified party by
      wire transfer of immediately available funds within 10 business days after
      the
      date of such notice.

    

    (c) The
      failure of the indemnified party to give reasonably prompt notice of any Claim
      shall not release, waive or otherwise affect the indemnifying party’s
      obligations with respect thereto except to the extent that the indemnifying
      party can demonstrate actual loss and prejudice as a result of such
      failure.

    

    ARTICLE
      IX.

    MISCELLANEOUS

    

    9.1. Payment
      of Sales, Use or Similar Taxes. All
      sales, use, transfer, intangible, recordation, documentary stamp or similar
      Taxes
      or
      charges, of any nature whatsoever, applicable to, or resulting from, the
      transactions contemplated by this Agreement shall be borne
      by the
      Parent.

    

    9.2. Survival
      of Representations and Warranties. The
      parties hereto hereby agree that the representations and warranties contained
      in
      this Agreement or in any certificate, document or instrument delivered in
      connection herewith, shall survive the execution and delivery
      of this Agreement, and the Closing hereunder, regardless of any investigation
      made by the parties hereto; provided, however, that any
      claims
      or actions with respect thereto (other than claims for indemnifications with
      respect to the representation and warranties contained in Sections 3.7, 3.10,
      3.17, 3.19, 4.4 and 4.5 which shall survive for periods coterminous with any
      applicable statutes of limitation) shall terminate unless within twelve (12)
      months after the Closing Date written notice of such claims is given to the
      Seller or such actions are commenced.

    

    9.3. Expenses.
      Except
      as
      otherwise provided in this Agreement, the Seller, the Parent and Acquisition
      Sub
      shall each bear its own
      expenses
      incurred in connection with the negotiation and execution of this Agreement
      and
      each other agreement, document and instrument contemplated by this Agreement
      and
      the consummation of the transactions contemplated hereby and
      thereby.

    

    9.4.
      Specific Performance. The
      Seller and Owners acknowledge and agree that the breach of this Agreement would
      cause irreparable damage to the Parent and Acquisition Sub and that the Parent
      and Acquisition Sub will not have an adequate remedy at law. Therefore, unless
      validly terminated pursuant to Section 2.2 above, the obligations of the Seller
      under this Agreement, including, without limitation,
      the Seller’s obligation to sell the Assets to the Parent and Acquisition Sub,
      shall be enforceable by a decree of specific performance
      issued
      by any court of competent jurisdiction, and appropriate injunctive relief may
      be
      applied for and granted in connection therewith. Such remedies shall, however,
      be cumulative and not exclusive and shall be in addition to any other remedies
      which any party may have under this Agreement or otherwise.

    

    

    

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    9.5. Further
      Assurances. The
      Seller, the Parent and Acquisition Sub each agrees to execute and deliver such
      other documents or agreements and to take such other action as may be reasonably
      necessary or desirable for the implementation of this Agreement and the
      consummation of the transactions contemplated hereby.

    

    9.6. Submission
      to Jurisdiction; Consent to Service of Process

    

    (a) The
      parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
      of
      any federal or state court located within the State of Delaware over any dispute
      arising out of or relating to this Agreement or any of the transactions
      contemplated hereby and each party hereby
      irrevocably agrees that all claims in respect of such dispute or any suit,
      action proceeding related thereto may be heard and determined
      in such
      courts. The parties hereby irrevocably waive, to the fullest extent permitted
      by
      applicable Law, any objection which they may now or hereafter have to the laying
      of venue of any such dispute brought in such court or any defense of
      inconvenient forum for the maintenance of such dispute. Each of the parties
      hereto agrees that a judgment in any such dispute may be enforced in other
      jurisdictions by suit on the judgment or in any other manner provided by
      law.

    

    (b) Each
      of
      the parties hereto hereby consents to process being served by any party to
      this
      Agreement in any suit, action or proceeding by the mailing of a copy thereof
      in
      accordance with the provisions of Section 9.9.

    

    9.7.
      Entire Agreement; Amendments and Waivers. This
      Agreement (including the schedules and exhibits hereto) represents the
entire
      understanding and agreement between the parties hereto with respect to the
      subject matter hereof and can be amended, supplemented or changed,
      and any provision hereof can be waived, only by written instrument making
      specific reference to this Agreement signed by the party
      against
      whom enforcement of any such amendment, supplement, modification or waiver
      is
      sought. No action taken pursuant to this

    Agreement,
      including without limitation, any investigation by or on behalf of any party,
      shall be deemed to constitute a waiver by the party taking such action of
      compliance with any representation, warranty, covenant or agreement contained
      herein. The waiver by any party hereto of a breach of any provision of this
      Agreement shall not operate or be construed as a further or continuing waiver
      of
      such breach or as a waiver of any other or subsequent breach. No failure on
      the
      part of any party to exercise, and no delay in exercising, any right, power
      or
      remedy hereunder shall operate as a waiver thereof, nor shall any single or
      partial exercise of such right, power or remedy by such party preclude any
      other
      or further exercise thereof or the exercise of any other right, power or remedy.
      All remedies hereunder are cumulative and are not exclusive of any other
      remedies provided by law.

    

    (a)
      Governing Law. This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware.

     

                                        

    

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    9.8. Table
      of Contents and Headings. The
      table
      of contents and section headings of this Agreement are for reference
      purposes
      only and
      are to be given no effect in the construction or interpretation of this
      Agreement.

    

    9.9.
      Notices. All
      notices and other communications under this Agreement shall be in writing and
      shall be deemed given when delivered personally or mailed by certified mail,
      return receipt requested, to the parties (and shall also be transmitted by
      facsimile to the Persons
      receiving copies thereof) at the following addresses (or to such other address
      as a party may have specified by notice given to the
      other
      party pursuant to this provision):

    

    If
      to
      Parent or Acquisition Sub:

     

                   
      Farwell Equity Partners LLC

                    1818
      North Farwell Avenue,

                    Milwaukee,
      WI 53202

                   
      Attn: David Marks 

                   
      Managing
      Member                
      

                   
      Phone: 510-824-1200 Fax: 312-873-3739

    

    With
      a
      copy to:

    Thomas
      A.
      Rose, Esq.

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York,
      New York 10018

    Phone:
      212-930-9700

    Fax:
      212-930-9725

    

    If
      to
      Seller or Owners:

    OBLIO
      Telecom L.L.P.

    407
      International Parkway, Suite 403

     Richardson,
      Texas 75081

    Attn:
      Sammy Jibrin

    Phone:
      ______________________ 

    Fax:
      972-470-9105

    OBLIO
      Telecom L.L.P.

    407
      International Parkway, Suite 403

    Richardson,
      Texas 75081

    Attn:
      Radu Achiriloaie

    Phone:
      ______________________ 

    Fax:
      972-470-9105

    

     

    

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    With
      a
      copy to:

    Jackson
      Walker L.L.P.

    901
      Main
      Street, Suite 6000
      Dallas,
      Texas 75202

    Attn:
      Brad L. Whitlock
      Phone:
      214-953-5687

    Fax:
      214-661-6814

    

    9.10.Severability.
      If
      any
      provision of this Agreement is invalid or unenforceable, the balance of this
      Agreement shall remain in
      effect.

    

    9.11.Binding
      Effect; Assignment. This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective
      successors and permitted assigns. Nothing in this Agreement shall create or
      be
      deemed to create any third party beneficiary rights
      in any
      person or entity not a party to this Agreement except as provided below. No
      assignment of this Agreement or of any rights or obligations hereunder may
      be
      made by either the Seller or the Parent (by operation of law or otherwise)
      without the prior written consent of the other parties hereto and any attempted
      assignment without the required consents shall be void; provided, however,
      that
      the Parent may assign
      this Agreement and any or all rights or obligations hereunder (including,
      without limitation, the Parent’s rights to purchase the Assets,
      the
      Parent’s rights to seek indemnification and the Parent’s rights to rely on any
      of Seller’s or the Owners’ representations and warranties made hereunder) to VNI
      or any Affiliate of the Parent. Upon any such permitted assignment, the
      references in this Agreement to the Parent shall also apply to any such assignee
      unless the context otherwise requires.

     

    [SIGNATURE
      PAGE TO ASSET PURCHASE AGREEMENT]

     

    

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

    Farwell
      Equity Partners, LLC

    

    

                                            
      By: /s/
      David Marks

                                        
      David Marks, Managing Member

    

    

    

                                            
      OBLIO TELECOM, INC.

    

    

                                            
      By: /s/
      David Marks

                                         David
      Marks, Chairman

     

                                        
      OBLIO TELECOM L.L.P.

    

    

                                       
      By: /s/
      Radu Achiriloaie

                                          
      Achiriloaie,
      Partner

    
 

    /s/
      Sammy Jibrin  

                                                                                                                                                      
        Sammy Jibrin

    

    

    /s/
      Radu Achiriloaie 

                                                         
      Radu Achiriloaie

    

    VENTURES-NATIONAL
      INCORPORATED

    

    

    By:
      /s/
      David Marks

    David
      Marks, Chairman (As to Section 2.2 only)

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