Document:

<PAGE>

                                                                 Exhibit 10.26.1

                                    SHAREHOLDER AGREEMENT dated as of January 1,
                           2000 (this "Agreement"), among EAC III L.L.C., a
                           Delaware limited liability company (the "Ripplewood
                           Shareholder"), each individual (each a "Management
                           Shareholder" and, collectively with the Ripplewood
                           Shareholder, the "Shareholders") listed on Schedule I
                           attached hereto ("Schedule I") and WRC Media Inc.
                           (formerly named EAC II Inc.), a Delaware corporation
                           (the "Company").

                  In consideration of the mutual agreements herein contained,
and other good and valuable consideration the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

                                    ARTICLE I

                    DEFINITIONS, USAGE AND EQUITY INVESTMENT

                  SECTION 1.01.  DEFINED TERMS.  The following terms
shall have the following meanings:

                  "Affiliate" means, with respect to any specified Person, any
other Person that directly or indirectly, through one or more intermediaries,
Controls, is Controlled by, or is under Common Control with, such specified
Person. For purposes of this definition, "Control (including, with correlative
meanings, the terms "Controlled by" and "under Common Control with"), as used
with respect to any Person, means the direct or indirect possession of the power
to direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.

                  "Agreement" has the meaning set forth in the preamble to this
Agreement.

                  "Board of Directors" means the Board of Directors of the
Company.

                  "Change of Control" has the meaning set forth in Section 1.03.

                  "Closing Date" means November 17, 1999.

                  "Company Common Stock" has the meaning set forth in Section
1.03.
<PAGE>

                                                                               2

                  "Direct Transfer" means a Transfer (without giving effect to
the second sentence of the definition of "Transfer").

                  "Drag-Along Notice" has the meaning set forth in Section
2.01(f).

                  "Employment Agreement" means, with respect to each Management
Shareholder, the Employment Agreement between such Management Shareholder and
the Company or that subsidiary of the Company employing such Management
Shareholder.

                  "Executive" has the meaning set forth in the Executive
Shareholder Agreement.

                  "Executive Shareholder Agreement" means the Shareholder
Agreement dated as of November 17, 1999, among the Ripplewood Shareholder,
Martin Kenney and the Company.

                  "Fair Market Value" means the fair market value of a Share,
determined in accordance with Section 2.01(g).

                  "GCL" means the General Corporation Law of the State of
Delaware (8 Del. C. Section 101, ET SEQ.), as amended from time to time and
any successor statute thereto.

                  "Involuntary Transfer" means any Transfer by any Shareholder
of any Shares, or of any beneficial ownership thereof, upon death, appointment
of a guardian, default, foreclosure, forfeit, bankruptcy (voluntary or
involuntary), court order, levy of attachment, execution or otherwise than
voluntarily by the Transferor; PROVIDED that a Transfer required pursuant to
Section 2.01(f) shall not be deemed an Involuntary Transfer.

                  "Management Shareholder" has the meaning set forth in the
preamble to this Agreement.

                  "Other Management Shareholders" means those persons listed on
Schedule I to the Other Management Shareholder Agreement.

                  "Other Management Shareholder Agreement" means the Shareholder
Agreement dated as of November 17, 1999, among the Ripplewood Shareholder, the
Other Management Shareholders and the Company.

                  "Permitted Transferee" means, (i) with respect to the
Ripplewood Shareholder, (A) Ripplewood or an Affiliate of Ripplewood, (B) a
shareholder, partner, member or
<PAGE>

                                                                               3

employee of Ripplewood or any Affiliate of Ripplewood or (C) an employee of the
Company or a Subsidiary of the Company and (ii) with respect to each Management
Shareholder, (A) another Shareholder, (B) the Executive, (C) the Company or (D)
such Management Shareholder's spouse or lineal descendants or any trust the
beneficiaries of which include only such Management Shareholder's spouse or
lineal descendants.

                  "Person" means any individual, corporation, partnership,
trust, association, limited liability company, joint venture, joint-stock
company or any other entity or organization, including a government or
governmental agency.

                  "Preferred Stock" means the 15% Senior Exchangeable Preferred
Stock Due 2011, par value $0.01 per share, of the Company.

                  "Purchase Agreement" means the Redemption, Stock Purchase and
Recapitalization Agreement dated as of August 13, 1999, between PRIMEDIA Inc., a
Delaware corporation, and the Company, as amended.

                  "Ripplewood" means Ripplewood Partners, L.P.

                  "Ripplewood Shareholder" has the meaning set forth in the
preamble to this Agreement.

                  "Shares" means the shares of Company Common Stock held by a
Shareholder.

                  "Shareholders" has the meaning set forth in the preamble to
this Agreement.

                  "Subsidiary" means, with respect to any specified Person,
another Person, an amount of the voting securities, other voting ownership or
voting partnership interests of which is sufficient to elect at least a majority
of its board of directors or other governing body (or, if there are no such
voting interests, 50% or more of the equity interests of which) is owned
directly or indirectly by such first Person or by another Subsidiary of such
first Person.

                  "Tag-Along Notice" has the meaning set forth in Section
2.01(e).

                  "Third Party Purchaser" means, with respect to any proposed
sale of Shares by a Shareholder, a Person, other than an Affiliate of such
Shareholder, who offers to purchase from such Shareholder such Shares pursuant
to a bona fide written offer.
<PAGE>

                                                                               4

                  "Transfer" means any transfer, sale, conveyance, assignment,
gift, hypothecation, pledge or other disposition, whether voluntary or by
operation of law, of a Share. Notwithstanding the foregoing, any transfer, sale,
conveyance, assignment, gift, hypothecation, pledge or other disposition,
whether voluntary or by operation of law, of any stock, partnership interest,
membership interest or any other ownership interest in any entity that is a
direct or indirect beneficial or record owner of any Share (including any
disposition by means of a merger, consolidation or similar transaction) or any
other transaction that has the economic effect of a Transfer of a Share
(including the designation of any beneficiary of any trust that is a direct or
indirect beneficial or record owner of any Share) shall be deemed to be a
Transfer of such Share by the Shareholder directly owning such Share.

                  "Transferee" means the transferee in a Transfer.

                  "Transferor" means the transferor in a Transfer.

                  SECTION 1.02. OTHER DEFINITION PROVISIONS. Wherever required
by the context of this Agreement, the singular shall include the plural, and
vice versa, and the masculine gender shall include the feminine and neuter
genders, and vice versa, and references to any agreement, document or instrument
shall be deemed to refer to such agreement, document or instrument as amended,
supplemented or modified from time to time. When used herein, (i) the word "or"
is not exclusive and (ii) the words "including," "includes," "included" and
"include" are deemed to be followed by the words "without limitation."

                  SECTION 1.03. (a) EQUITY INVESTMENT. As of the date hereof,
pursuant to each Management Shareholder's Employment Agreement, each Management
Shareholder is purchasing from EAC IV L.L.C., a Delaware limited liability
company, at a price of $18.60065 per share in cash the number of shares of
common stock, par value $0.01 per share ("Company Common Stock"), of the Company
set forth opposite such Management Shareholder's name under the column entitled
"Shares of Company Common Stock" on Schedule I.

                  (b) VOTING AGREEMENTS. Each Management Shareholder hereby
agrees with the Ripplewood Shareholder that from and after the date hereof: (a)
such Management Shareholder shall vote all of the Shares held by such Management
Shareholder (including shares acquired after the date hereof) in the same manner
as the Shares held by the Ripplewood Shareholder are voted on all matters acted
upon at any annual or special meeting of shareholders or by

<PAGE>

                                                                               5

written consent in lieu of a meeting and (b) such Management Shareholder
irrevocably constitutes and appoints the Ripplewood Shareholder such Management
Shareholder's proxy to vote all of the Shares held by such Management
Shareholder in the same manner as the Shares held by the Ripplewood Shareholder
are voted on all matters acted upon at any annual or special meeting of
shareholders or by written consent in lieu of a meeting; PROVIDED that this
Section 1.03(b) shall be inapplicable with respect to any matters which would
both adversely affect the rights of the Shares held by such Management
Shareholder and treat such Management Shareholder differently from other holders
of shares of Company Common Stock. The voting agreements and proxies granted
pursuant to this Section 1.03(b) are coupled with an interest and shall be valid
for the term of this Agreement. Each Management Shareholder represents that such
Management Shareholder has not granted and is not a party to any proxy, voting
trust or other agreement which in each case is inconsistent with or conflicts
with the provisions of this Agreement, and such Management Shareholder shall not
grant any proxy or become a party to any voting trust or other agreement which
in each case is inconsistent with or conflicts with the provisions of this
Agreement. The provisions of this Section 1.03(b) shall terminate as to any
Shares held by a Management Shareholder upon any Transfer of such Shares after,
or upon, completion of an initial public offering of shares of Company Common
Stock and the termination of any lock up period agreed to by such Management
Shareholder with the underwriters in connection therewith.

                  (c) OPTIONS. Each Management Shareholder is hereby granted a
nonqualified option to purchase that number of shares of Company Common Stock
set forth opposite such Management Shareholder's name under the column entitled
"Options" on Schedule I, at an exercise price per share of $18.60065 per share.
To the extent such Management Shareholder continues employment under the
Employment Agreement of such Management Shareholder, such option shall vest 33%
immediately, 33% on December 31, 2000 and, if the Company renews such Management
Shareholder's Employment Agreement as set forth in Section 2 of such Employment
Agreement for an additional one-year period ending on December 31, 2002, 34% on
December 31, 2001; PROVIDED that such option shall terminate in its entirety in
the event that such Management Shareholder's employment by the Company or the
applicable subsidiary of the Company is terminated by the Company or such
subsidiary with Good Cause (as defined in such Management Shareholder's
Employment Agreement) (other than pursuant to clause (v) thereof). Such option
shall vest immediately in the event that such Management
<PAGE>

                                                                               6

Shareholder's employment under such Employment Agreement is terminated (x)
pursuant to clause (v) of the definition of Good Cause in such Employment
Agreement or (y) prior to December 31, 2001 by the Company for any reason other
than Good Cause following a Change of Control (as defined below). Such
Management Shareholder may exercise the vested portion of such option either (i)
by notifying the Company of the number of shares of Company Common Stock to be
purchased under such option and delivering with such notice an amount equal to
the aggregate exercise price for such number of shares in cash or (ii) by
notifying the Company that such Management Shareholder desires to make a
cashless exercise of such option with respect to a specified number of shares of
Company Common Stock, in which case such option shall be deemed exercised with
respect to such specified number of shares but such Management Shareholder shall
only be entitled to receive a number of shares of Company Common Stock equal to
the product of (A) such specified number multiplied by (B) the quotient of (1)
the aggregate Fair Market Value of such specified number of shares of Company
Common Stock (determined as of the date the Company receives such notice in
accordance with Section 2.01(g)) minus the aggregate exercise price for such
specified number of shares divided by (2) such aggregate Fair Market Value. Such
option shall not be transferable or assignable by such Management Shareholder,
otherwise than by will or the laws of descent and distribution, and no such
option shall be subject to execution, attachment or other similar process. In no
event shall any such option be exercisable on or after the tenth anniversary of
the Closing Date. In the event of changes in outstanding Company Common Stock by
reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, reorganizations, mergers, consolidations, combinations or
other changes in capitalization occurring after the date hereof, the number of
shares and exercise price under such option shall be equitably adjusted by the
Board of Directors of the Company. Any amount payable under such option shall be
subject to applicable withholding taxes. "CHANGE OF CONTROL" shall mean the
acquisition of direct or indirect Control of the Company by any Person (other
than the Ripplewood Shareholder, SGC Partners II LLC ("SGC") or any of their
Affiliates or any group (other than any group including the Ripplewood
Shareholder or SGC or any of their Affiliates).

                  (d) RULE 701. To the extent permitted by applicable law, the
shares of Company Common Stock to be issued to each Management Shareholder upon
exercise of the options granted to such Management Shareholder pursuant to
Section 1.03(c) shall be offered and sold to such Management Shareholder
pursuant to the exemption from the registration
<PAGE>

                                                                               7

requirements of the Securities Act of 1933, as amended (the "Securities Act")
provided for by Rule 701 ("Rule 701") of the Securities Act.

                                   ARTICLE II

                        TRANSFERS OF SHARES; TRANSACTIONS
                 BETWEEN RIPPLEWOOD SHAREHOLDER AND THE COMPANY

                 SECTION 2.01. TRANSFERS OF THE COMPANY SHARES.

                  (a) GENERALLY. (i) No Shareholder may Transfer all or any
portion of its Shares (or any beneficial ownership thereof) unless (A) such
Transfer is in accordance with this Section 2.01, (B) in the case of a Direct
Transfer (other than pursuant to Section (e) or (f) or if the Board of Directors
shall otherwise agree), the Transferee executes and delivers a counterpart of
the signature page of this Agreement (or other appropriate assumption agreement)
in which the Transferee agrees to be bound by the provisions of this Agreement
to the same extent as the Transferor and providing the address for notices of
such Transferee and (C) the Transferee executes and delivers any other
agreements, documents or instruments reasonably specified by the Board of
Directors. Any Transfer made in violation of this Section 2.01(a) shall be null
and void and shall be subject to Section 2.01(d).

                  (ii) Whenever a Transfer is to be consummated by any Person on
a specified date under this Section 2.01, such Transfer shall take place at
10:00 a.m. Eastern Time on such date (or, if such date is not a business day,
the next following business day) at the principal office of Ripplewood,
presently located at One Rockefeller Plaza, New York, New York, or at such other
time, date and place as the Company and the parties to such Transfer may agree.
The consideration for such Transfer shall be paid by delivery to the applicable
Transferor of a certified or bank check made payable to such Transferor or by
wire transfer of immediately available funds to a bank account designated by
such Transferor, against due execution and delivery of the agreements, documents
and instruments specified in Section 2.01(a)(i), such other agreements,
documents and instruments as the parties to such Transfer may reasonably require
including certificates or other instruments representing the Shares so
purchased, appropriately endorsed by such Shareholder, free and clear of all
security interests, liens, claims, encumbrances, charges, options, restrictions
on transfer, proxies and voting and other
<PAGE>

                                                                               8

agreements of whatever nature other than those created hereunder.

                  (iii) The provisions of this Section 2.01, other than Section
2.01 (e), (f), (g), (h) and (i), shall terminate upon the completion of an
initial public offering of shares of Company Common Stock by the Company and the
termination of any lockup period agreed to by the Management Shareholders with
the underwriters in connection therewith.

                  (b) TRANSFERS BY THE RIPPLEWOOD SHAREHOLDER. Subject to
Section 2.01(a) and, with respect to a Transfer to any Person other than a
Permitted Transferee of the Ripplewood Shareholder, Section 2.01(e), the
Ripplewood Shareholder (and its Permitted Transferees) shall have the right to
Transfer at any time all or any portion of its Shares (including any beneficial
ownership thereof) to any Person without the prior consent of any Person.

                  (c) TRANSFERS BY OTHER SHAREHOLDERS. (i) Subject to Section
2.01(a), any other Shareholder (and its Permitted Transferees) shall have the
right to Transfer at any time all or any portion of its Shares (including any
beneficial ownership thereof) to any of its Permitted Transferees without the
prior consent of any Person.

                  (ii) No Shareholder other than the Ripplewood Shareholder (or
the Ripplewood Shareholder's Permitted Transferees) shall have the right to
Transfer all or any portion of its Shares (including any beneficial ownership
thereof) to any Person other than another Shareholder or the Company except in
accordance with Section 2.01(a) and (A) pursuant to Section 2.01(c)(i), (e) or
(f) or (B) with the prior written consent of the Ripplewood Shareholder.

                  (d) INVOLUNTARY AND IMPERMISSIBLE TRANSFERS. If an Involuntary
Transfer or a Transfer in violation of this Agreement shall occur with respect
to any Shareholder other than the Ripplewood Shareholder and, in the case of a
Transfer in violation of this Agreement, such violation has not been cured
within 30 days after notice to the applicable Transferor or Transferee, the
Company shall give notice to the Ripplewood Shareholder, offering the Ripplewood
Shareholder (or its designee) the right, exercisable by delivery of written
notice to the Transferee with respect to such Involuntary Transfer or Transfer
in violation of this Agreement, within 90 days following the day on which such
notice is given, to purchase all of the Shares acquired by such Transferee at a
purchase price equal to, in the case of an Involuntary Transfer, 100% or, in the
case of a Transfer in violation of this Agreement, 90% of the Fair Market Value
<PAGE>

                                                                               9

thereof, determined in accordance with Section 2.01(g) as of the date of such
Transfer (or, if lower, as of the date of such determination). The closing date
of any purchase described in this Section 2.01 shall be on the date specified by
the Company that shall not be later than the 30th day after a determination of
the Fair Market Value of the Shares to be purchased is made. The Ripplewood
Shareholder may assign its rights under this Section 2.01(d) to any person.

                  (e) TAG-ALONG RIGHTS. If the Ripplewood Shareholder desires to
Transfer in excess of 5% of its Shares to a prospective Transferee (or
Transferees) other than to a Permitted Transferee of the Ripplewood Shareholder
and, after giving effect to such Transfer, the Ripplewood Shareholder shall have
Transferred in excess of 35% in the aggregate of its Shares to a Transferee (or
Transferees) other than Permitted Transferees of the Ripplewood Shareholder, the
Ripplewood Shareholder shall, as a condition to such Transfer, (i) provide a
notice to all other Shareholders in writing (a "Tag-Along Notice") of the
material terms of the proposed Transfer at least 15 days prior to such Transfer
and (ii) permit all other Shareholders (or cause all other Shareholders to be
permitted) to sell (either to the prospective Transferee of the Ripplewood
Shareholder's Shares or to another financially reputable Transferee reasonably
acceptable to such other Shareholders) the same portion of their respective
Shares as that Transferred by the Ripplewood Shareholder in the aggregate to
Transferees other than Permitted Transferees of the Ripplewood Shareholder
(after giving effect to such proposed Transfer) on the same terms and
conditions, subject to the same agreements and at the same price as the proposed
sale by the Ripplewood Shareholder, which sale shall take place on the date the
Ripplewood Shareholder's Shares (or such portion) are Transferred to such
Transferee (or Transferees). Each other Shareholder shall have five days from
the date of receipt of a Tag-Along Notice to exercise its right to sell pursuant
to clause (ii) above by delivering written notice to the Ripplewood Shareholder
of its intent to exercise such right. The right of the other Shareholders to
sell pursuant to clause (ii) above shall terminate if not exercised within such
five-day period. Each other Shareholder electing to exercise its right to sell
pursuant to clause (ii) shall share, on a pro rata basis, the legal, investment
banking and other expenses of the Ripplewood Shareholder incurred in connection
with such Transfer.

                  (f) DRAG-ALONG RIGHTS. If at any time the Ripplewood
Shareholder desires to Transfer all (or any portion in excess of 35%) of its
Shares to any Third Party Purchaser (or Purchasers), the Ripplewood Shareholder
shall
<PAGE>

                                                                              10

have the right to require that all other Shareholders Transfer the same portion
of their respective Shares to such Third Party Purchaser (or Purchasers) on the
same terms and conditions, subject to the same agreements and at the same price
as the sale by the Ripplewood Shareholder. The Ripplewood Shareholder shall
provide a notice to all other Shareholders in writing (a "Drag-Along Notice") of
such sale at least 10 days prior to such Transfer, and the Drag-Along Notice
shall identify such Third Party Purchaser (or Purchasers), all material terms of
the sale and the date of closing. Upon the closing of any sale by the Ripplewood
Shareholder of all (or such portion) of its Shares as described in a Drag-Along
Notice, such Third Party Purchaser (or Purchasers) shall pay to each other
Shareholder the consideration payable to such Shareholder in connection with
such sale of all (or such portion) of its Shares to such Purchaser (or
Purchasers), net of such Shareholders' proportionate share of the legal,
investment banking and other expenses of the Ripplewood Shareholder incurred in
connection with such sale, and the Shares (or such portion) of all such other
Shareholders shall be deemed Transferred to such Third Party Purchaser (or
Purchasers).

                  (g) FAIR MARKET VALUE. (i) If a determination of the Fair
Market Value of any shares of Company Common Stock is required by this Agreement
when there is no public trading market for the shares of Company Common Stock,
such "Fair Market Value" shall be such amount as is determined in good faith by
the Board of Directors as of the date such Fair Market Value is required to be
determined hereunder. In making a determination of such Fair Market Value, the
Board of Directors shall give due consideration to such factors as it deems
appropriate, including, without limitation, the earnings and certain other
financial and operating information of the Company and its subsidiaries in
recent periods, its potential value and that of its subsidiaries as a whole, its
future prospects and that of its subsidiaries and the industries in which they
compete, its history and management and that of its subsidiaries, the general
condition of the securities markets and the fair market value of securities of
privately owned companies (with transfer restrictions) engaged in businesses
similar to those of the Company and its subsidiaries, if any. The Fair Market
Value, as determined by the Board of Directors in good faith, shall be binding
and conclusive upon all parties hereto.

                  (ii) If a determination of the Fair Market Value of any shares
of Company Common Stock is required by this Agreement when there is a public
trading market for shares of Company Common Stock, such "Fair Market Value"
shall mean the average daily closing sales price of the shares of Company
<PAGE>

                                                                              11

Common Stock for the ten consecutive trading days preceding the date the Fair
Market Value of the shares of Company Common Stock is required to be determined
hereunder. The closing price for each day shall be the last reported sales price
regular way or, in case no such reported sale takes place on such day, the
average of the reported closing bid and asked prices regular way, in either case
on the principal national securities exchange on which the shares of Company
Common Stock are listed and admitted to trading, or, if not listed and admitted
to trading on any such exchange, on the NASDAQ National Market System, or, if
not quoted on the National Market System, the average of the closing bid and
asked prices in the over-the-counter market as furnished by any New York Stock
Exchange member firm selected from time to time by the Board of Directors for
that purpose.

                  (h) COMPANY OPTION UPON TERMINATION. In the event that any
Management Shareholder's employment by the Company or the applicable subsidiary
of the Company is terminated for any reason, including the nonrenewal of such
Management Shareholder's Employment Agreement, the Company or its designees
shall have an option to purchase (the "Company Option") all or any portion of
(i) the Shares then held by such Management Shareholder (including any of such
Shares acquired upon exercise of the nonqualified option granted to such
Management Shareholder pursuant to Section 1.03(c)) at a purchase price equal to
the Fair Market Value of such Shares, as determined in accordance with Section
2.01(g) as of the date of such termination, and (ii) the nonqualified option
granted to such Management Shareholder pursuant to Section 1.03(c) at a purchase
price equal to the product of (A) the number of shares of Company Common Stock
with respect to which such option has vested and the Company has elected to
exercise the Company Option and (B) the greater of (1) the difference between
the Fair Market Value of a share of Company Common Stock (determined in
accordance with Section 2.01(g) as of the date of such termination) and
$18.60065 and (2) $0. The Company must exercise its rights arising under the
Company Option, if at all, within 90 days of such date of termination; PROVIDED
that, if such rights arise as a result of the death of a Management Shareholder,
such rights must be exercised by the Company, if at all, within 9 months of such
termination. If the Company elects to exercise the Company Option, the Company
shall within 90 days (9 months in the case of the death of a Management
Shareholder) of such date of termination give notice in writing to such
Management Shareholder of its election to exercise the Company Option, which
notice shall set forth the portion, if any, of the Shares and such nonqualified
option that the Company elects to purchase. The purchase of the Shares and such
nonqualified option shall take place on the
<PAGE>

                                                                              12

date specified by the Company (not later than the later of the twentieth
business day following the receipt by such Management Shareholder of the
required notice from the Company and the satisfaction of any legal requirements
to the purchase of the Shares and such nonqualified option).

                  (i) MANAGEMENT SHAREHOLDER OPTION UPON TERMINATION. In the
event that (i) any Management Shareholder suffers from financial hardship,
determined in good faith by the Board of Directors, or (ii) any Management
Shareholder's employment by the Company or the applicable subsidiary of the
Company is terminated (A) by the Company or such subsidiary other than with Good
Cause (as defined in such Management Shareholder's Employment Agreement) (OTHER
THAN PURSUANT TO CLAUSE (v) THEREOF) or (B) because of a notice of nonrenewal
given by the Company or such subsidiary, such Management Shareholder or, in the
case of termination of employment by death, such Management Shareholder's estate
shall have the right to require the Company to purchase all or any portion of
such Management Shareholder's Shares (other than, in the case of the foregoing
clause (i), any of such Shares acquired upon exercise of the nonqualified-option
granted to such Management Shareholder pursuant to Section 1.03(c) the exercise
date of which was within six months of the date that such Management Shareholder
makes a claim of financial hardship to the Company) at a purchase price equal to
the Fair Market Value of such Shares, determined as of the date of such
determination of financial hardship or termination in accordance with Section
2.01(g); PROVIDED that, if the Board of Directors determines in good faith that
the Company has insufficient cash flow, and cannot obtain third party financing
on terms reasonably acceptable to the Board of Directors, to purchase such
Management Shareholder's Shares for cash, the Company may purchase such
Management Shareholder's Shares in exchange for junior subordinated notes of the
Company which (1) bear interest at a variable rate per annum equal to The Chase
Manhattan Bank's prime lending rate per annum, payable quarterly in arrears, (2)
provide for the repayment in full of principal on the earlier of the fifth
anniversary of the issuance of such notes and the date on which the Board of
Directors determines in good faith that the Company has sufficient cash flow, or
can obtain third party financing on terms reasonably acceptable to the Board of
Directors, to repay in full such principal and (3) are otherwise on terms
reasonably acceptable to such Management Shareholder; PROVIDED FURTHER that, to
the extent that the Board of Directors reasonably determines that such purchase,
if made, would (x) cause the Company to be or remain in default under any
agreements with lenders, despite commercially reasonable efforts by the Company
to obtain consents or amendments necessary to permit
<PAGE>

                                                                              13

such purchase, or (y) conflict with the terms (including with respect to
priority of payment) of the Preferred Stock, the Company shall be relieved of
its obligations to make such purchase under this Section 2.01(i) while and to
the extent such conditions continue to exist. Such Management Shareholder or, if
applicable, such Management Shareholder's estate shall have 90 days from the
date of such termination during which to give notice in writing to the Company
of its election to exercise or not to exercise such right (unless such right
arises as a result of the death of such Management Shareholder, in which case
such right must be exercised, if at all, within 9 months of such termination),
which notice must set forth the portion, if any, of the Shares that such
Management Shareholder or, if applicable, such Management Shareholder's estate
elects to sell. If no such notice has been given within such 90 days (or, if
applicable, nine months), such Management Shareholder or, if applicable, such
Management Shareholder's estate shall be deemed to not have exercised such
option. Such Management Shareholder may withdraw his election to exercise such
right for any reason up until the time that such Management Shareholder tenders
to the Company, pursuant to this Section, any Shares held by such Management
Shareholder. The purchase of such Shares shall take place on or prior to the
90th day, as determined by the Board of Directors, following the receipt by the
Company of such notice. Subject to any restriction in this Agreement or any
other agreement to which the Company or any of its Affiliates are party, the
Company may designate any other Person to fulfill its obligation under this
Section 2.01(i).

                                   ARTICLE III

                    STOCK REGISTRATION; LEGEND; CAPITAL STOCK

                  SECTION 3.01. STOCK REGISTRATION. (a) Each Management
Shareholder hereby represents and warrants to the Ripplewood Shareholder and the
Company that:

                  (i) Such Management Shareholder has had access to all
         information that such Management Shareholder deemed necessary to
         adequately evaluate whether to purchase any shares of Company Common
         Stock;

                  (ii) Such Management Shareholder understands that the Company
         Common Stock has not been registered under the Securities Act of 1933,
         as amended (the "Securities Act"), and shares of Company Common Stock
         will be offered and sold to such Management Shareholder (including upon
         exercise of stock options) in reliance
<PAGE>

                                                                              14

         upon an exemption from the registration requirements of the Securities
         Act afforded by Rule 701; and

                  (iii) any shares of Company Common Stock acquired by such
         Management Shareholder shall be acquired only for such Management
         Shareholder's own account, for investment purposes only and not with a
         view to its resale, distribution or other disposition.

                  (b) Each Management Shareholder agrees that such Management
Shareholder will not offer, sell, transfer, pledge, hypothecate or otherwise
dispose of any Shares except:

                  (i) pursuant to an exemption from registration under the
         Securities Act, as confirmed in a satisfactory opinion of legal counsel
         delivered to the Company, and in accordance with any applicable laws of
         any state of the United States governing the offer and sale of
         securities; or

                  (ii) pursuant to an effective registration statement under the
         Securities Act (it being understood that the Company, the Ripplewood
         Shareholder and their Affiliates are under no obligation to effect such
         registration) and in accordance with any applicable state laws.

                  (c) In the event that the Company files a registration
statement on Form S-8 of the Securities and Exchange Commission, the Company
shall, to the extent permitted by applicable law, include in such registration
statement shares of Company Common Stock issuable upon exercise of the then
unexercised options that were granted to each Management Shareholder pursuant to
Section 1.03(c) of this Agreement.

                  SECTION 3.02. LEGEND. Each Shareholder agrees that any and all
certificates representing such Shareholder's Shares will have inscribed
conspicuously on the front or back of such certificates the following legend:
"THE SHARES OF COMMON STOCK, PAR VALUE $.01 PER SHARE, OF WRC MEDIA INC.
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO ONE OR MORE AGREEMENTS AMONG
SHAREHOLDERS OR AGREEMENTS BETWEEN SHAREHOLDERS AND WRC MEDIA INC. AND MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE THEREWITH. COPIES OF SUCH
AGREEMENT OR AGREEMENTS MAY BE OBTAINED FROM THE SECRETARY OF WRC MEDIA INC. AT
THE PRINCIPAL EXECUTIVE OFFICES OF RIPPLEWOOD HOLDINGS L.L.C. THESE SHARES HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND MAY NOT BE REOFFERED OR RESOLD, DIRECTLY OR INDIRECTLY,
EXCEPT IN ACCORDANCE WITH THE
<PAGE>

                                                                              15

REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR PURSUANT TO AN EXEMPTION
THEREFROM AND IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES."

                  SECTION 3.03. CAPITAL STOCK; PRICE. The Company hereby
represents and warrants to each Management Shareholder that: The authorized
capital stock of the Company consists of 20,000,000 shares of Company Common
Stock, of which 6,855,853 shares are issued and outstanding (including 4,848,635
shares owned by the Ripplewood Shareholder) and 20,000,000 shares of Preferred
Stock, of which 3,000,000 shares are issued and outstanding. Except for the
shares specified in the preceding sentence, shares reserved for issuance
pursuant to options granted to the Management Shareholders, the Other Management
Shareholders and to the Executive and shares reserved for issuance pursuant to
the Preferred Stock and Warrants Subscription Agreement dated November 17, 1999,
among the Corporation, Weekly Reader Corporation, JLC Learning Corporation and
the purchasers named therein, there are no shares of capital stock or other
equity securities of the Company issued, reserved for issuance or outstanding.
The purchase price per share for the shares of Company Common Stock being
acquired by the Management Shareholders pursuant to Section 1.03(a) is the same
as the purchase price per share paid by the Ripplewood Shareholder and other
Persons who acquired shares of Company Common Stock simultaneously with the
Ripplewood Shareholder.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

                  SECTION 4.01. ENTIRE AGREEMENT. This Agreement sets forth the
entire understanding among the parties relating to the subject matter contained
herein and merges all prior discussions among them. This Agreement is not
intended to confer upon any Person other than the parties hereto any rights or
remedies hereunder.

                  SECTION 4.02. AMENDMENTS. This Agreement may not be amended
except by an instrument in writing signed by the Ripplewood Shareholder and
Management Shareholders holding a majority of the Shares held by all Management
Shareholders.

                  SECTION 4.03. NOTICES. All notices and other communications
required or permitted by this Agreement shall be made in writing and any such
notice or communication shall be deemed delivered when delivered in person,
transmitted by telex or telecopier, confirmation of transmission received, or
one business day after it has been sent by a nationally
<PAGE>

                                                                              16

recognized overnight courier, at the address or addresses for notices to the
recipient designated on Schedule II attached hereto. Communications by telex or
telecopier also shall be sent concurrently by first class mail or overnight
courier, but shall in any event be effective as stated above. Any Shareholder or
the Company may from time to time change its address for notices under this
Section 4.03 by giving at least five days' notice of such changed address to the
other Shareholders.

                  SECTION 4.04. INTERPRETATION. When a reference is made in this
Agreement to a Section, such reference shall be to a Section of this Agreement
unless otherwise indicated. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

                  SECTION 4.05. SEVERABILITY. If any one or more of the
provisions contained in this Agreement or in any document executed in connection
herewith shall be invalid, illegal or unenforceable in any respect under any
applicable law, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired;
PROVIDED, HOWEVER, that in such case the parties hereto shall endeavor to amend
or modify this Agreement to achieve to the extent reasonably practicable the
purpose of the invalid provision.

                  SECTION 4.06. GOVERNING LAW. This Agreement and all actions
contemplated hereby shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York (without regard to conflict
of laws principles), except to the extent that the provisions of the GCL may be
mandatorily applicable.

                  SECTION 4.07. COUNTERPARTS. This Agreement may be executed in
one or more counterparts, all of which shall be considered one and the same
agreement. This Agreement shall become effective against the Ripplewood
Shareholder when one or more counterparts have been signed by the Ripplewood
Shareholder and delivered to each other Shareholder. This Agreement shall become
effective against any other Shareholder when one or more counterparts have been
executed by such Shareholder and delivered to the Ripplewood Shareholder. This
Agreement shall become effective against the Company when one or more
counterparts have been signed by the Company and delivered to each other
Shareholder. Each party need not sign the same counterpart.

                  SECTION 4.08.  ASSIGNMENT.  Except pursuant to
Section 2.01(a),(d),(h) and (i) neither this Agreement nor
any of the rights, interests or obligations under this
<PAGE>

                                                                              17

Agreement shall be assigned, in whole or in part, by the Ripplewood Shareholder
without the prior written consent of the Ripplewood Shareholder and Management
Shareholders holding a majority of the Shares held by all Management
Shareholders or by any other Shareholder without the prior written consent of
the Ripplewood Shareholder, and any purported assignment without such consent
shall be void. Subject to the preceding sentences, this Agreement will be
binding upon, inure to the benefit of, and be enforceable by, the parties and
their respective successors and assigns.

                  SECTION 4.09. SPECIFIC PERFORMANCE. The parties hereby declare
that irreparable damage would occur as a result of the failure of any party
hereto to perform any of its obligations under this Agreement in accordance with
the specific terms hereof. Therefore, all parties hereto shall have the right to
specific performance of the obligations of the other parties under this
Agreement and if any party hereto shall institute any action or proceeding to
enforce the provisions hereof, any Person against whom such action or proceeding
is brought hereby waives the claim or defense therein that such party has or
have an adequate remedy at law exists. The right to specific performance shall
be in addition to any other remedy to which a party hereto may be entitled at
law or in equity.

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date first above written.

                                          EAC III L.L.C.,

                                          by RIPPLEWOOD PARTNERS, L.P.,
                                             its Member,

                                          by RIPPLEWOOD HOLDINGS L.L.C.,
                                             its General Partner,

                                          by________________________
                                            Name:
                                            Title:

                                            ________________________
                                                  Lester Rackoff

                                            ________________________
                                                 Sandy Maccarone
<PAGE>

                                                                              18

                                            ________________________
                                                 Ted Kozlowski

                                            ________________________
                                                  Eric Ecker

                                            ________________________
                                                 Terry Bromberg

                                            ________________________
                                                  Gerald Adams

                                            ________________________
                                                   Linda Hein

                                            ________________________
                                                  Janice Bailey

                                            ________________________
                                                  David Press

                                            ________________________
                                                 Robert Famighetti

                                            ________________________
                                                 Cindy Buckosh

                                            ________________________
                                                   Ken Park
<PAGE>

                                                                              19

                                            WRC MEDIA INC.,

                                            by________________________
                                              Name:
                                              Title:
<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>
                               Shares of
                                Company
   Shareholder                Common Stock                  Options
-------------------------------------------------------------------
<S>                              <C>                        <C>
Lester Rackoff                   4,032                      2,688
-------------------------------------------------------------------
Sandy Maccarone                    538                        358
-------------------------------------------------------------------
Ted Kozlowski                      538                        358
-------------------------------------------------------------------
Eric Ecker                         452                        301
-------------------------------------------------------------------
Terry Bromberg                     538                        358
-------------------------------------------------------------------
Gerald Adams                     1,075                        717
-------------------------------------------------------------------
Linda Hein                       1,344                        896
-------------------------------------------------------------------
Janice Bailey                    2,150                      1,434
-------------------------------------------------------------------
David Press                      2,688                      1,792
-------------------------------------------------------------------
Cindy Buckosh                    1,075                        717
-------------------------------------------------------------------
Robert Famighetti                1,613                      1,075
-------------------------------------------------------------------
Ken Park                         1,613                      1,075
-------------------------------------------------------------------
</TABLE>
<PAGE>

                                   SCHEDULE II

<TABLE>
<CAPTION>
Shareholder                                  Address
-----------                                  --------
<S>                                          <C>
EAC III L.L.C.                               c/o Ripplewood Holdings L.L.C.
                                             One Rockefeller Plaza, 32nd Floor
                                             New York, New York 10020

                                             Attn:  Mr. Timothy C. Collins
                                                    Mr. Charles L. Laurey
                                             Fax:   212) 582-4110

                                             with a copy to:

                                             Cravath, Swaine & Moore
                                             Worldwide Plaza
                                             825 Eighth Avenue
                                             New York, New York  10019

                                             Attn:  Peter S. Wilson, Esq.
                                             Fax:   (212) 765-0978

WRC Media Inc.                               c/o Ripplewood Holdings L.L.C.
                                             One Rockefeller Plaza, 32nd Floor
                                             New York, New York 10020

                                             Attn:  Mr. Timothy C. Collins
                                                    Mr. Charles L. Laurey
                                             Fax:   (212) 582-4110

                                             with a copy to:

                                             Cravath, Swaine & Moore
                                             Worldwide Plaza
                                             825 Eighth Avenue
                                             New York, New York  10019

                                             Attn:  Peter S. Wilson, Esq.
                                             Fax:   (212) 765-0978

Mr. Lester Rackoff                           200 First Stamford Place
                                             PO Box 120023
                                             Stamford, CT 06912-0023

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825
<PAGE>

Ms. Sandy Maccarone                          200 First Stamford Place
                                             PO Box 120023
                                             Stamford, CT 06912-0023

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Mr. Ted Kozlowski                            200 First Stamford Place
                                             PO Box 120023
                                             Stamford, CT 06912-0023

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Mr. Eric Ecker                               200 First Stamford Place
                                             PO Box 120023
                                             Stamford, CT 06912-0023

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Terry Bromberg                               200 First Stamford Place
                                             PO Box 120023
                                             Stamford, CT 06912-0023

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825
<PAGE>

Mr. Gerald Adams                             4201 Woodland Road
                                             Circle Pines, MN 55014

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Ms. Janice Bailey                            1 International Boulevard, Suite 630
                                             Mahwah, NJ 07495

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Mr. David Press                              1555 North River Center Drive
                                             Suite 201
                                             Milwaukee, WI 53212

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Mr. Robert Famighetti                        1555 North River Center Drive,
                                             Suite 201
                                             Milwaukee, WI 53212

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825
<PAGE>

Ms. Cindy Buckosh                            15355 Neo Parkway
                                             Cleveland, OH 44128

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825

Mr. Ken Park                                 11 Penn Plaza
                                             New York, NY  10001

                                             with a copy to:

                                             Rubin, Baum, Levin, Constant &
                                                  Friedman
                                             30 Rockefeller Plaza
                                             New York, NY 10312

                                             Attn: Mr. Robert J. Benowitz
                                             Fax:  (212) 698-7825
</TABLE><PAGE>

                                                                    Exhibit 10.3

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 this Company's confidential treatment request.

                     CONTRACT FOR THE ENGINEERING, PROJECT
                 MANAGEMENT, FACTORY INSPECTION, TRAINING AND
                     TECHNICAL ASSISTANCE SERVICES FOR THE
                   ESTABLISHMENT OF A WIRELESS ACCESS SYSTEM

                        AZ COMMUNICATIONS NETWORK, INC.

                                    - and -

                        AIRSPAN COMMUNICATIONS LIMITED

                               October 25, 1999

                            CONTRACT NO. CN99-002/S

                                       1
<PAGE>

                               TABLE OF CONTENTS

                    SECTION 1      DEFINITIONS

                    SECTION 2      SCOPE OF THE CONTRACT

                    SECTION 3      SERVICES TO BE RENDERED BY ACL

                    SECTION 4      SERVICES TO BE RENDERED BY AZCOM

                    SECTION 5      PRICE

                    SECTION 6      TERMS OF PAYMENT

                    SECTION 7      SCHEDULE

                    SECTION 8      ACCEPTANCE

                    SECTION 9      CONFIDENTIALITY AND USE
                                   OF INFORMATION

                    SECTION 10     LIQUIDATED DAMAGES

                    SECTION 11     LIMITATION OF LIABILITY

                    SECTION 12     FORCE MAJEURE

                    SECTION 13     CHANGES

                    SECTION 14     APPLICABLE DOCUMENTS

                                       2
<PAGE>

                    SECTION 15     ORDER OF PRECEDENCE

                    SECTION 16     SEVERABILITY

                    SECTION 17     SUCCESSION AND ASSIGNMENT

                    SECTION 18     TERMINATION

                    SECTION 19     ARBITRATION

                    SECTION 20     INTERPRETATION

                    SECTION 21     ADDRESSES

                    SECTION 22     EXECUTION IN COUNTERPARTS

                    SECTION 23     EFFECTIVITY OF THE CONTRACT

                                      ***

                                       3
<PAGE>

This Contract For The Engineering, Project Management, Factory Inspection,
Training and Technical Assistance Services For The Establishment of a Wireless
Access System is entered into this 25/th/ day of October 1999 between the
following parties:

     AZ COMMUNICATIONS NETWORK, INCORPORATED, a corporation organized and
     existing under the laws of the Republic of the Philippines and having its
     principal office in 8/th/ Floor DPC Place, 2322 Chino Roces Avenue, Makati
                         ------------------------------------------------------
     City, Philippines, represented in this act by its Director for Engineering,
     ------------------
     Felizardo P. dela Merced, and hereinafter referred to as "AZCOM";

                                   - a n d -

     AIRSPAN COMMUNICATIONS LIMITED, a corporation organized and existing under
     the laws of the United Kingdom and having its registered address at
     Cambridge House, Oxford Road, Uxbridge Middlesex, UB8, 1UN, United Kingdom,
     ---------------------------------------------------------------------------
     represented in this act by Henrik Smith-Petersen, Regional Sales Vice
     President, and hereinafter referred to as "ACL".

     (AZCOM and ACL may be individually referred to as a "Party" and
     collectively the "Parties")

WHEREAS, ACL has represented itself to be a qualified and reliable provider of
services needed by AZCOM for the engineering, project management, factory
inspection, training and technical assistance services, for the establishment of
Wireless Access System Network and has offered to supply the same to AZCOM.

WHEREAS, AZCOM is the holder of a valid franchise issued by the Congress of the
Republic of the Philippines and is duly authorized to provide telecommunications
services throughout the Philippines.

WHEREAS, pursuant to its authority to provide telecommunications services, AZCOM
has expressed its desire to acquire a wireless access system as contemplated by
this Contract.

WHEREAS, AZCOM is interested in acquiring the said services offered by ACL for
the said Project.

WHEREAS, ACL has agreed to provide, and AZCOM is willing to purchase the said
services under such terms and conditions mutually agreeable to the Parties.

NOW, THEREFORE, for and in consideration of the foregoing, this Contract is
entered into under the following terms and conditions:

                                       4
<PAGE>

1    DEFINITIONS
     -----------

     For purposes of this Contract, the following terms shall have the meanings
     indicated and the plural form of any term defined herein in the singular
     shall merely express the grammatical plural of that defined term:

     "Contract"                    refers to this Contract For The Engineering,
                                   Project Management, Factory Inspection,
                                   Training and Technical Assistance Services
                                   For The Establishment of a Wireless Access
                                   System together with its annexes and the
                                   other documents specifically considered its
                                   integral parts.

     "Acceptance Test Program"     refers to the series of steps to be taken in
                                   conducting the necessary tests and inspection
                                   of a System to verify its compliance with the
                                   Specifications, as determined by AZCOM.

     "Cell Site"                   refers to the area of coverage around a base
                                   station wherein it can provide reliable
                                   service in accordance with the
                                   Specifications.

     "Equipment"                   refers to the equipment i.e., Wireless Access
                                   System (WAS) Equipment, including base
                                   stations, subscriber terminals, RF and indoor
                                   units, antennas and feeders, and other
                                   related installation materials as described
                                   in Annex A, which ACL is required to deliver
                                   under this Contract, and to install, test and
                                   commission under the Services Contract.

     "System Acceptance"           refers to the issuance of a System Acceptance
                                   certificate by AZCOM after the completion of
                                   the System Acceptance Test to certify that
                                   the System installed by ACL fully complies
                                   with the Specifications.

     "System Acceptance Test"      refers to test conducted by AZCOM in
                                   accordance to an agreed Acceptance Test
                                   Program to determine if the System installed
                                   fully complies with the Specifications.

     "Network"                     refers to the complete point-to-point or
                                   point-to-multipoint configuration of the
                                   Equipment configured in accordance with the
                                   Specifications to provide the WAS; it shall
                                   be composed of multiple Systems.

     "Price"                       refers to the total price to be paid by AZCOM
                                   to ACL in consideration for the complete and
                                   faithful performance by ACL of its duties and
                                   responsibilities under this Contract.

     "Project"                     refers to the undertaking or activity subject
                                   of this Contract and the Services Contract.

                                       5
<PAGE>

     "Schedule"                    refers to the timetable describing the
                                   activities and the period within which to
                                   complete each and every System, the Network
                                   and the Project, as described in Annex B.

     "Supply Contract"             refers to Contract No. CN99-002 between AZCOM
                                   and ACL dated October 25, 1999, for the sale
                                   and purchase of equipment and ancillary
                                   facilities for the establishment of a
                                   wireless access system.

     "Spares"                      refers to the items or materials to be used
                                   as replacement or reserve for maintenance
                                   purposes of the Equipment during and after
                                   the Warranty Period, which shall likewise be
                                   subject to acceptance testing.

     "Specifications"              refers to the technical specifications of the
                                   Equipment as described in the Protocol (Annex
                                   B).

     "System"                      refers to a part or segment of the Network,
                                   which can be put into workable commercial
                                   operation. Each system shall be comprised of
                                   a base station, subscriber terminals, network
                                   management station, antennae, radio frequency
                                   amplifiers and other related equipment to
                                   complete point-to-point or point-to-
                                   multipoint connectivity under a single Cell
                                   Site.

     "Warranty Period"             refers to the period of time from System
                                   Acceptance up to 18 months thereafter. The
                                   Warranty Period shall be extended when the
                                   requirements of the performance monitoring as
                                   described in Annex B are not met.

     "Work"                        refers to all the services to be performed by
                                   ACL under the Contract.

                                       6
<PAGE>

2    SCOPE OF THE CONTRACT
     ---------------------

     2.1  ACL undertakes to provide the complete engineering, installation and
          commissioning, project management, factory inspection, training and
          technical assistance services and the other services stipulated in
          this Contract, and takes full responsibility of ensuring that the
          System shall comply in all respects with the Specifications.

     2.2  In consideration for the performance by ACL of its obligations under
          this Contract, AZCOM shall pay ACL the Price in accordance with the
          terms of payment described in Section 6 hereof.

3    SERVICES TO BE RENDERED BY ACL
     ------------------------------

     ACL shall perform the following services:

     3.1  Engineering Design

          3.1.1  ACL shall undertake the design and engineering of the complete
                 network and other associated installation and erection
                 materials to be established in accordance with the
                 Specifications and shall assume full and overall responsibility
                 over the System in regard to:

                 -    engineering and operational consistency

                 -    functional integration of the network

                 -    operational and functional interconnection with AZCOM's
                      frame relay network

          3.1.2  The design or engineering services shall include the following
                 activities:

                 -    site survey

                 -    preparation of plans, such as, installation  drawings,
                      system description, etc.

                 -    radio frequency planning and management

                 -    detailed engineering

          3.1.3  Prior to the installation of the Equipment, the detailed
                 working plans shall be submitted by ACL to AZCOM, except for
                 the first five (5) sites, one (1) week prior to the start of
                 the installation for its comments or concurrence.
                 Notwithstanding any comments made by AZCOM on the said plans,
                 the responsibility of accomplishing the objectives of the
                 Project shall remain with ACL.

                                       7
<PAGE>

     3.2  Installation and Commissioning

          3.2.4  ACL shall perform the installation work in accordance with the
                 installation plan as agreed with AZCOM.

          3.2.5  ACL shall provide the necessary personnel with knowledge and
                 skill in the installation of telecommunication equipment.

          3.2.6  ACL shall provide the installation and test personnel for the
                 entire period of the Project in accordance with the agreed
                 Schedule.

          3.2.7  The installation of the Equipment shall be undertaken in
                 accordance with the installation documents, the appropriate
                 Philippine government regulations, and the instructions of ACL.
                 The comments or recommendations of AZCOM on the installation
                 shall be taken into consideration by ACL as much as possible.

                         The installation shall include, but not be limited to
                         the following.- Mechanical installation of the System

                         -    Interconnection of the Equipment and internal
                              cabling
                         -    Interconnection of the Equipment to power supply
                              and ground terminals
                         -    Interconnection to AZCOM's network
                         -    Termination to MDF/DDF

          3.2.8  The Equipment shall be tested after its installation. The
                 quantity and type of measurement shall be agreed upon by the
                 parties prior to the measuring activities and shall be stated
                 in the Acceptance Test Program.

     3.3  Project Management

          3.3.1  ACL shall provide, during the entire period of the Project, the
                 personnel who will coordinate with AZCOM in the performance of
                 its planning, engineering, installation, testing and
                 commissioning services.

          3.3.2  ACL shall arrange the time schedule of the performance of its
                 services and inform AZCOM immediately of any changes in the
                 said schedule. ACL shall coordinate with AZCOM on matters
                 regarding shipment, availability of installation and testing
                 personnel, tools, test equipment, vehicles and the on-time
                 availability of the building and power supply equipment.

          3.3.3  ACL shall submit, except for the first five (5) sites, a weekly
                 report of its accomplishments to AZCOM using a format to be
                 agreed upon by the parties at least one (1) month before the
                 start of the installation.

                                       8
<PAGE>

     3.4  Installation Planning

          3.4.1  ACL shall supply all the documents needed for the installation,
                 testing and maintenance, and whatever information that may be
                 essential for the proper installation of the Equipment. All the
                 said documents shall be written in the English language.

          3.4.2  The documents to be provided by ACL for each station/switch
                 location shall include, but not be limited to, the following:

                         -    Equipment layout plans
                         -    Floor layout plans
                         -    MDF/DDF and terminal block wiring plans
                         -    Network configuration plan
                         -    Power distribution plans
                         -    Cabling plans
                         -    Grounding plans
                         -    Installation instructions
                         -    Interface configuration

          3.4.3  ACL shall deliver the plans and drawings to AZCOM before the
                 commencement of the installation work. A prerequisite for the
                 installation planning is the punctual delivery of the building
                 plans by AZCOM.

     3.5  Submission of Installation Documents

          ACL shall submit the installation documents to AZCOM for its comments
          or concurrence, except for the first five (5) sites, one (1) week
          prior to the start of the installation as stated in the installation
          schedule. Notwithstanding any comments made by AZCOM in the said plan,
          the responsibility of accomplishing the objectives of the Project
          shall remain with ACL.

     3.6  ACL's Personnel

          3.6.1  ACL shall provide sufficient and qualified manpower to carry
                 out the Work within the period stated in Annex B.

          3.6.2  ACL shall replace any of its personnel whom AZCOM may consider
                 undesirable.

          3.6.3  No employer-employee relationship shall exist between AZCOM and
                 ACL's personnel, it being clearly understood that the said
                 personnel are the employees of ACL.

     3.7  Tools and Test Equipment

          3.7.1  ACL shall make available the quantity and types of tools and
                 test equipment

                                       9
<PAGE>

                 needed for the testing and acceptance work to be done under
                 this Contract. This excludes specialized tools and equipment
                 required by AZCOM to perform Performance Monitoring.

          3.7.2  All the costs and expenses, including customs duties and re-
                 export bond, which may be incurred in connection with the re-
                 export of the tools and test equipment to their place of origin
                 shall be for the account of ACL.

     3.8  Training Courses

          ACL shall provide training to AZCOM's personnel in accordance with
          Annex B.

     3.9  Technical Assistance

          ACL shall provide technical assistance service during the Warranty
          Period, as described in Annex B.

     3.10 Inland Transportation and Warehousing

          ACL shall bear the cost of warehousing, unloading, loading and
          transportation to the Job Site(s) of the Equipment as provided for
          under this Contract.

     3.11 Other Services

          ACL shall provide all the other services stipulated in this Contract.

4    SERVICES TO BE RENDERED BY AZCOM
     --------------------------------

     AZCOM shall provide the drawings of the equipment room which may be
     necessary for the installation design of the Equipment. AZCOM shall provide
     the technically-clarified design drawings of the equipment room of the
     buildings upon request by ACL.  These drawings shall include the plans of
     the equipment rooms with data about positions for the Equipment as well as
     outlets for central main current grounding connection.

                                       10
<PAGE>

5    PRICE
     -----

     5.1  Subject to the compliance by ACL with the terms and conditions of this
          Contract, AZCOM shall pay ACL the following:

          The sum of [*] as full and complete payment of the Work. The breakdown
          of the Price shall be in accordance with Annex A and summarized as
          follows:

                                                           PRICE
                                                           (US$)

5.1.1    Engineering                                               [*]

5.1.2    Installation and Commissioning                            [*]

5.1.3    Project Management                                        [*]

5.1.4    Inland Transportation and Warehousing                     [*]

5.1.5    Factory Inspection/Training                               [*]

5.1.6    Technical Assistance                                      [*]
                                                     -----------------
                                      TOTAL                        [*]

5.2  The Price shall be firm up to the completion of the Project.

5.3  The Price covers all taxes, customs duties, license fees, and other charges
     which may be imposed on foreign services by authorities other than the
     government of the Republic of the Philippines. All taxes, fees and other
     charges which may be levied in the Philippines in connection with or
     incidental to this Contract shall be for the account of AZCOM.

5.4  In the event the full amounts provided for the cost of the Work are not
     utilized or in case of termination of this Contract under Section 19
     hereof, ACL shall return the proportionate amount representing the value of
     Work which were not utilized in a manner to be described in a separate
     letter by AZCOM.

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

                                       11

<PAGE>

6    TERMS OF PAYMENT
     ----------------

     6.1  Subject to the rules and regulations of the Bangko Sentral ng
          Pilipinas, AZCOM shall pay the Price in accordance with the following
          schedule:

          6.1.1  For Engineering Services

                 6.1.1.1  The downpayment, which is equivalent to fifteen
                          percent (15%) of the full value of engineering
                          services shall be paid by AZCOM within thirty (30)
                          calendar days from the signing of this Contract and
                          upon receipt of complete and correct invoice.

                 6.1.1.2  Subject to the rules and regulations of the Bangko
                          Sentral ng Pilipinas, AZCOM shall pay ACL the Price
                          from the proceeds of the financing agreement/s to be
                          concluded by AZCOM, with the assistance of ACL, with
                          international credit institutions to defray the cost
                          of the Project. AZCOM shall pay the Price in
                          accordance with the following schedule.

                          The balance, or eighty five percent (85%) of the value
                          of the said services, shall be paid in eight (8) equal
                          monthly installments, the first payment of which shall
                          be due thirty (30) calendar days after the payment of
                          the downpayment, and upon receipt of complete and
                          correct invoice.

          6.1.2  For Installation and Commissioning Services

                 6.1.2.1  The downpayment, which is equivalent to fifteen
                          percent (15%) of the value of the installation,
                          testing and commissioning services, shall be paid by
                          AZCOM within thirty (30) calendar days from the
                          signing of this Contract and upon receipt of complete
                          and correct invoice.

                 6.1.2.2  Subject to the rules and regulations of the Bangko
                          Sentral ng Pilipinas, AZCOM shall pay ACL the Price by
                          means of a telegraphic transfer in accordance with the
                          following schedule:

                          (a)  Seventy five percent (75%) of the value of the
                               said services for each System shall be paid
                               within thirty (30) calendar days from the time
                               ACL informs AZCOM in writing that a System is
                               ready for System Acceptance Test and upon receipt
                               of complete and correct invoice.

                          (b)  The balance, or ten percent (10%) of the value of
                               the said services, shall be paid within thirty
                               (30) calendar days from the issuance of the
                               System acceptance certificate of the last System
                               and upon receipt of complete and correct invoice.

                                       12
<PAGE>

                         For purposes of determining the value of the
                         installation for each System, the following formula
                         shall be used :

                              A     =   (B/C) * D

                              where :

                              A     =   amount for installation, testing,
                                        commissioning and engineering services
                                        for each System

                              B     =   C/20

                              C     =   total Equipment amount for all Systems

                              D     =   total amount for installation, testing,
                                        commissioning and engineering services

          6.1.3  For Project Management and Inland Transportation and
                 Warehousing

                 6.1.3.1  The downpayment, which is equivalent to fifteen
                          percent (15%) of the full value of project management
                          services, shall be paid by AZCOM within thirty (30)
                          calendar days from the signing of this Contract and
                          upon receipt of complete and correct invoice.

                 6.1.3.2  Subject to the rules and regulations of the Bangko
                          Sentral ng Pilipinas, AZCOM shall pay ACL the Price
                          from the proceeds of the financing agreement/s to be
                          concluded by AZCOM, with the assistance of ACL, with
                          international credit institutions to defray the cost
                          of the Project. AZCOM shall pay the Price in
                          accordance with the following schedule.

                          Seventy five percent (75%) of the full value of the
                          said services shall be paid within eighteen (18) equal
                          monthly installments, the first payment of which shall
                          be due thirty (30) days from the payment of the
                          downpayment, and receipt of complete and correct
                          invoice provided, that if, after the tenth (10th)
                          installment, the percentage accomplishment in the
                          installation is not commensurate to the progress
                          billings for project management services already paid
                          and provided that such non-accomplishment is ACL's
                          responsibility. AZCOM shall have the right to suspend
                          the payment of the project management services until
                          after the work progress matches the billings.
                          Thereafter the monthly billings shall take into
                          account the actual percentage in work accomplishments.

                          The balance, or ten percent (10%) of the full value of
                          the said services, shall be paid within thirty (30)
                          calendar days from the issuance of the

                                       13
<PAGE>

                          System acceptance certificate of the last System and
                          upon receipt of complete and correct invoice.

          6.1.4  For Training and Factory Inspection

                 Free of charge.

          6.1.5  For Emergency Technical Assistance

                 6.1.5.1  The downpayment, which is equivalent to fifteen
                          percent (15%) of the value of the emergency technical
                          assistance services, shall be paid by AZCOM within
                          thirty (30) calendar days from the signing of this
                          Contract and upon receipt of complete and correct
                          invoice.

                 6.1.5.2  Subject to the rules and regulations of the Bangko
                          Sentral ng Pilipinas, AZCOM shall pay ACL the Price
                          from the proceeds of the financing agreement/s to be
                          concluded by AZCOM, with the assistance of ACL, with
                          international credit institutions to defray the cost
                          of the Project. AZCOM shall pay the Price in
                          accordance with the following schedule.

                          The balance, or eighty five percent (85%) of the value
                          of the said services, shall be paid in twenty four
                          (24) equal monthly installments, the first payment of
                          which shall be due thirty (30) calendar days from the
                          payment of the downpayment and upon receipt of
                          complete and correct invoice.

     6.2  AZCOM shall be responsible for securing all the required
          authorizations from the Bangko Sentral ng Pilipinas for the payments
          to be made under this Contract.

     6.3  ACL shall be responsible for the submission of all the required
          billings/invoices under this Contract.

     6.4  All bank charges, which may be incurred outside the Philippines on
          account of the above-mentioned payments, shall be borne by ACL.

7    SCHEDULE
     --------

     ACL acknowledges that time is of the essence in this Contract and therefore
     it shall undertake to complete the Work within the periods described in
     Annex B.

8    ACCEPTANCE
     ----------

     8.1  The Acceptance Test Program shall be prepared by ACL and submitted to
          AZCOM for its comments at least two (2) weeks before the conduct of
          the acceptance testing. AZCOM

                                       14
<PAGE>

          shall give its comments or signify its concurrence to the program
          within one (1) week from the date of its submission by ACL. The
          Acceptance Test Program shall not be implemented by ACL without the
          prior written approval of AZCOM.

     8.2  System Acceptance

          (a)  A System shall be considered complete and ready for System
               Acceptance Test when all the items and components of the
               Equipment installed by ACL are in ACL's judgment, in working
               order.

          (b)  ACL shall inform AZCOM in writing of the completion and readiness
               for System acceptance testing of a System at least two (2) weeks
               in advance of the scheduled testing.

          (c)  The System Acceptance Test shall be conducted by AZCOM under the
               supervision of ACL within a period of seven (7) calendar days for
               each System. ACL shall immediately correct any defect for which
               it may be responsible. Upon successful System Acceptance Test, a
               system acceptance certificate shall be issued by AZCOM within two
               (2) weeks therefrom. In case the System is put into commercial
               operation by AZCOM before the System Acceptance without ACL's
               written approval, the System acceptance certificate shall be
               deemed to have been issued by AZCOM at the time of commencement
               of commercial operation.

          (d)  The system acceptance certificate shall not be withheld because
               of minor defects which do not substantially affect the normal
               operation of the System as described in detail in Annex B.

     8.3  Performance Monitoring

          After the System Acceptance, the System concerned shall undergo
          performance monitoring in accordance with the pertinent provisions of
          Annex B. The performance monitoring shall continue until the System
          Acceptance.  If, prior to the System Acceptance, the results of the
          performance monitoring show that the performance standards described
          in Annex B have not been met, ACL shall promptly undertake the
          necessary correction/s at no cost to AZCOM to bring the performance of
          the System to the agreed performance level.

          Consequently, the Warranty Period shall be extended by a period of
          time which corresponds to the length of time it took ACL to bring the
          System to the acceptable performance standards, as described in Annex
          B.

9    CONFIDENTIALITY AND USE OF INFORMATION
     --------------------------------------

     9.4  All business and technical information and data including all software
          provided by either Party and related documentation, in whatever form
          provided, recorded or unrecorded (hereinafter collectively referred to
          as "Information"), which the Parties may furnish or

                                       15
<PAGE>

          have furnished each other in anticipation of this Contract shall:

          (a)  be used solely for the purpose for which it was furnished;
          (b)  be treated in strictest confidence and protected;
          (c)  not be reproduced, except as necessary for its authorized use;
               and
          (d)  if in tangible form, shall be returned together with all copies
               thereof, including the promotional materials, when demanded by
               either Party or no longer needed.

     9.5  The obligations of confidentiality and restricted use are not
          applicable to those portions of the Information that, free from any
          obligation to maintain confidential, were previously known to, or that
          fall into public knowledge without the fault of either Party, or which
          the Parties have agreed in writing need not be kept confidential.

10   LIQUIDATED DAMAGES
     ------------------

     10.1 AZCOM shall have the right to claim liquidated damages from ACL in
          case ACL fails to meet the scheduled date of System Acceptance of a
          System.

     10.2 In case of failure to meet the scheduled date of System Acceptance of
          a System, ACL shall pay AZCOM in United States Dollars, liquidated
          damages in an amount equivalent to 0.10% of the Price for each day of
          delay, Sundays and Holidays included.

     10.3 Where the right to claim liquidated damages exists, the liquidated
          damages payable shall not exceed eight percent (8%) of the price of
          the affected System. In addition, ACL must replace the affected System
          with a part of an equal or greater functionality

     10.4 In consideration of the aggressive schedule of the Project
          Implementation as shown in Annex B, ACL shall be allowed extra time to
          meet the schedule date of completion as follows:

          .  For the sites to be completed in November       : 60 days
          .  For the sites to be completed in December       : 60 days
          .  For the sites to be completed in January        : 30 days
          .  For the sites to be completed in February       : 15 days

          The above means that liquidated damages can only be claimed by AZCOM
          against ACL after the above extension time has likewise been exceeded.

     10.5 The claim of AZCOM for liquidated damages against ACL shall not
          prejudice the exercise of AZCOM of its other right and privileges
          under the contract.

     10.6 Any deferment on the part of AZCOM to remit the downpayment within ten
          (10) days of Contract signing shall allow ACL an extension equivalent
          to the number of days AZCOM has delayed in the remittance of the
          downpayment from the said ten (10) day period.

                                       16
<PAGE>

11   LIMITATION OF LIABILITY
     -----------------------

     The Parties shall be liable only for damages directly caused through their
     own fault or negligence.

12   FORCE MAJEURE
     -------------

     12.1 The Parties shall not be liable for the non-performance of any of its
          obligations under this Contract when such inability is due solely to
          an event of force majeure which (a) directly affects the performance
          of a Party's obligations under this Contract and (b) the occurrence of
          which event is not traceable to the fault or negligence of the said
          Party.

     12.2 The events of force majeure shall include, but not be limited to: (a)
          earthquakes, floods, typhoons, or epidemics; (b) war, rebellion,
          insurgency, riots, or invasion of the Philippines by another country;
          (c) strikes, lockouts, boycotts or other forms of work stoppage; and
          (d) government embargo, restriction, or commandeering of the vessel
          carrying the Equipment.

     12.3 In case an event of force majeure happens, the affected Party shall
          exert its best efforts to comply with its obligations under this
          Contract. If an event of force majeure prevents the carrying out of
          only a portion of the Project and that portion is not critical to the
          accomplishment of the Project as a whole, the affected Party shall
          continue to perform its obligations on the portion not affected by the
          event of force majeure.

     12.4 The Party invoking an event of force majeure must immediately notify
          in writing the other Party and specify which of its obligations it is
          prevented from complying with by the event of force majeure, and give
          an estimate of the period during which it is likely that it shall be
          prevented from complying with the said obligations. After the
          occurrence of the event of force majeure is proven, the Schedule and
          the performance bond may, after discussions in good faith, be amended
          by Contract of the Parties.

     12.5 The amendment of the Schedule pursuant to Section 12.4 shall not give
          ACL the right to seek or demand an adjustment or modification of the
          Price.

13   CHANGES
     -------

     13.1 Any request by AZCOM for a change in the Work or any part thereof
          shall be subject to the conformity of ACL.  Such request shall be
          subject to later written confirmation by AZCOM.  The additional cost
          and expenses which may arise on account of such changes, if any, shall
          be borne by AZCOM, and the date of completion of the Work may be
          extended by agreement of the parties.

     13.2 ACL may, with the consent of AZCOM, make minor adjustments in the Work
          as, in its sole discretion, may appear necessary for the proper
          accomplishment of its obligations under this Contract. The said
          adjustments shall be subject to the following conditions: (a) the
          general configuration, general characteristics and quality of the Work
          are maintained;

                                       17
<PAGE>

          (b) the Schedule is not changed or modified; (c) any additional costs
          or expenses which may arise as a consequence of such adjustments shall
          be for the account of ACL; and (d) such adjustments shall be reported
          in writing to AZCOM.

14.  APPLICABLE DOCUMENTS
     --------------------

     The following annexes shall, by this reference, form an integral part of
     this Contract:

     Annex A   -   Equipment List and Price Schedule

     Annex B   -   AZCOM-ACL Protocol dated October 25, 1999

     Annex C   -   Joint Order No. 1-91 (Comprehensive Import Supervision
                   Scheme)

15.  ORDER OF PRECEDENCE
     -------------------

     In case of any conflict in the interpretation of the terms and conditions
     of the various documents cited in this Contract, the order of precedence
     shall be: this Contract; Equipment List and Price Schedule (Annex A);
     Protocol (Annex B); Joint Order No. 1-91 (Annex C); and Supply Contract.

16   SEVERABILITY
     ------------

     If any part, term or provision of this Contract shall become invalid or
     unenforceable, the validity or enforceability of the remaining portions or
     provisions shall not be affected, and the rights and obligations of the
     parties shall be construed as if this Contract did not contain the
     particular invalid or unenforceable part, term or provision.

17   SUCCESSION AND ASSIGNMENT
     -------------------------

     17.1 This Contract shall be binding upon the successors and assigns of the
          Parties and shall not, except as otherwise provided in Section 18.2
          hereof, be assigned in whole or in part by a Party without the prior
          written consent of the other party, and which consent shall not be
          unreasonably withheld.

     17.2 ACL may assign or sub-contract to its subsidiary or associated company
          in the Philippines or any other local entity its rights and
          obligations which ACL decides may be more appropriately performed by
          its subsidiary or associated company in the Philippines or other local
          entity. Before any such assignment or sub-contracting is entered into
          by ACL, it shall seek the comments of AZCOM on such intended course of
          action. However, AZCOM's comments shall not relieve or diminish ACL's
          obligations and responsibilities under this Contract. ACL shall
          continue to be responsible for the workmanship and quality of the work
          of the assignee or sub-contractee, including all acts of default or
          negligence of such

                                       18
<PAGE>

          assignee or sub-contractee, its employees or personnel, as if they
          were the acts of default or negligence of ACL. There is no employer-
          employee relationship between the employees of ACL and AZCOM and vice-
          versa.

18   TERMINATION
     -----------

     18.1 In case of default on the part of ACL:

          18.1.1  If ACL fails to comply with any of the terms and conditions of
                  this Contract after proper written notice by AZCOM, AZCOM
                  shall have the right to terminate this Contract thirty (30)
                  days after a notice of termination has been served on ACL.

          18.1.2  In the event of such termination, AZCOM shall be entitled to
                  retain and apply the balance, which may otherwise be due to
                  ACL under this Contract to pay for the cost to complete the
                  Project. If the said balance is not sufficient to cover the
                  cost of the inoperative or non-functional Equipment or System,
                  the additional cost needed to make the Equipment operative or
                  functional shall be paid by ACL to AZCOM

     18.2 In case of default on the part of AZCOM:

          18.2.1  If AZCOM fails to comply with any of the terms and conditions
                  of this Contract after proper written notice by ACL, ACL shall
                  have the right to terminate this Contract thirty (30) days
                  after a notice of termination has been served on AZCOM.

          18.2.2  In case of such termination, AZCOM shall pay ACL the value of
                  the delivered Equipment and release the performance bond
                  submitted by ACL.

19   ARBITRATION
     -----------

     19.1 In the event of any dispute or difference of opinion arising out of or
          relating to this Contract or breach thereof, the parties shall exert
          their best efforts to settle such dispute or difference amicably.

     19.2 If such dispute or difference is not amicably settled within sixty
          (60) calendar days from its occurrence, the matter shall be settled
          through arbitration by a panel of three (3) arbitrators, one to be
          named by each Party and the third arbitrator shall be chosen by the
          two earlier designated arbitrators. In case they fail to select a
          third arbitrator within fifteen (15) calendar days from the date they
          commenced the discussion of the said selection, the third arbitrator
          shall be appointed by the chairpersons of the National Bar
          Associations of the countries of the Parties.  No one shall be
          nominated or act as an arbitrator who is in any way financially
          interested in this Contract or in the business affairs of any of the
          parties.

     19.3 If any Party is dissatisfied with the decision of the arbitrators, the
          Party concerned shall, within ten (10) calendar days from receipt of
          the decision, notify the arbitrators that it

                                       19
<PAGE>

          disputes the same and the matter shall thereupon be settled under the
          Rules of Conciliation and Arbitration of the International Chamber of
          Commerce. The arbitration proceedings shall be conducted in Geneva,
          Switzerland in the English Language. The resulting award shall be
          final and binding on the parties.

20   INTERPRETATION
     --------------

     20.1 The table of contents and headings of the sections are included for
          convenience of reference only. They shall not affect the construction
          and interpretation of any provision of this Contract. The word
          "hereof" is used in this Contract to refer to this Contract as a whole
          and not to any individual section or part of this Contract. Reference
          to sections are to sections of this Contract.

     20.2 To interpret the commercial terms and abbreviations used in this
          Contract, which have not been otherwise defined, the provisions of the
          latest issue of INCOTERMS shall be used.  All the other terms and
          conditions of this Contract shall be interpreted in accordance with
          the laws of New York State, USA provided that nothing in this Section
          20 shall be construed to authorize the amendment or modification of
          the annexes cited in Section 14 hereof.

     20.3 Any granting of time and other indulgence or waiver of obligation on
          the part of one party to the other shall be isolated or peculiar to
          that particular occasion or purpose and shall be without prejudice to
          future compliance with the terms and conditions of this Contract.

21   ADDRESSES
     ---------

     21.1 AZCOM and ACL specify their respective addresses as follows:

          For AZCOM:

          AZ COMMUNICATIONS NETWORK INCORPORATED
          8/F DPC Place, 2322 Chino Roces Avenue
          Makati City, Philippines

          Attention:  Felizardo P. dela Merced

          For ACL:

          AIRSPAN COMMUNICATIONS LIMITED
          Cambridge House, Oxford Road
          Uxbridge Middlesex, UB8 1UN UK

          Attention:  Henrik Smith-Petersen

                                       20
<PAGE>

     21.2 Any letter or notice sent to these addresses shall be considered
          delivered upon its actual receipt by the addressee. In the event any
          party changes its address, it shall notify the other party of the
          change of address in writing within five (5) calendar days from the
          date the change of address took effect.

22   EXECUTION IN COUNTERPARTS
     -------------------------

     This Contract may be executed in counterparts by both Parties and shall
     become effective upon receipt by either Party of a copy of this Contract
     duly executed by the other.

23   EFFECTIVITY OF THE CONTRACT
     ---------------------------

     This Contract shall become effective after it is signed by AZCOM and ACL.

IN WITNESS WHEREOF, the parties have affixed their signatures on the date and
place first above written.

AZ COMMUNICATIONS                    AIRSPAN COMMUNICATIONS LIMITED
NETWORK INCORPORATED

By:                                  By:

_________________________             ______________________

                         Witnessed By:

_________________________             _____________________

<PAGE>

                                    ANNEX A

                                      OF

                             CONTRACT NO. CN99-002

                              AZCOM-ACL PROTOCOL

PROVISIONING, ENGINEERING, FURNISHING, INSTALLATION, TESTING AND COMMISSIONING

                                    FOR THE

                         ESTABLISHMENT OF A COMPLETE
                        WIRELESS ACCESS SYSTEM NETWORK

                               OCTOBER 25, 1999
<PAGE>

                             Equipment Price List

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>         <C>
Equipment Description -Demand Assigned               Quantity   Unit Price  Extended Price
for 20 BS, 322 STs                                   Required
------------------------------------------------------------------------------------------
Subscriber Terminal
L 128 Internal Subscriber Terminal                           *           *               *

DA Modules
CT Rack with combiner & 2 DA shelves                         *           *               *

CT Expansion Rack with alarm & 2 DA  shelves                 *           *               *

Basic RF plug in set for CT
 (PA+MON+2PSU+DIPLNA)                                        *           *               *

RF plug in expansion set for omni/multi-sector CT
 (PA+PSU+DIPLNA)                                             *           *               *

Basic DA Card set (rf+AU+TU+SC+2PSU)                         *           *               *

DA Modem Card                                                *           *               *

AC Rack with alarm & 1 AC shelf                              *           *               *

Basic AC Card Set (64kbit/s)
 (2PSU+SC+CTU+XTU)                                           *           *               *
                                                                                ----------
                                                                                         *

Antenna Modules
Omni Antenna System, incl. Feeder and kit                    *           *               *

Sitespan NMS
Sitespan HW platform                                         *           *               *

Sitespan Client / Server Software License                    *           *               *

Sitespan Shelf License                                       *           *               *

STMON                                                        *           *               *
                                                                                ----------
                                                                                         *

Misc.
System Spares                                                *           *               *

Tools (CT and ST Installation and Maintenance)               *           *               *

Survey Tool                                                  *           *               *

Pump-up mast for use with survey tool                        *           *               *
                                                                                ----------
TCP/IP to RS232 Converter for NMS Backhaul                   *           *               *
                                                                                ----------
                                                                                         *

Mandatory Services
Documentation Set (CD ROM)                                   *           *               *
Design/Engineering Services                                  *           *               *

Installation and Commissioning                               *           *               *

Project Management                                           *           *               *
------------------------------------------------------------------------------------------
</TABLE>
[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
<S>                                                 <C>         <C>         <C>
Equipment Description - Demand Assigned (Cont.)      Quantity   Unit Price  Extended Price
for 20 BS, 322 STs                                   Required
------------------------------------------------------------------------------------------

Inland Transportation and Warehousing                        *           *               *

Technical Assistance                                         *           *               *

Factory Inspection / Foreign Training                        *           *               *

Local Training                                               *           *               *
                                                                                ----------
                                                                                         *
------------------------------------------------------------------------------------------
Total Cost of Equipment and Services in US$                                              *
</TABLE>
[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

                            Detailed Equipment List

AS 4000 Equipment (X3 Band)

Description                                                             Qty
-------------------------------------------------------------------------------
Antennas
Omni Antenna System                                                      *
Feeder Install Kit                                                       *
Feeder cable                                                             *

CT Rack + RF Plug in cards
Rack hardware with 2 DA modem shelves (powder coat painted)              *
EPI PSU                                                                  *
X3 - RF Diplexer and LNA                                                 *
Combiner Mon                                                             *
Combiner Mon PSU                                                         *
Dual Power Amplifier to include packaging                                *

DA Expansion rack
Expansion "carcus" rack with cables and power distribution panel
and "standard" Expansion rack vent and blanking panels                   *
DA modem shelf (powder coat painted)                                     *
Blanking panels for FA modem shelf (to fill in for non-fitted DA shelf)  *

DA Modem Shelf Card set for 1 RF carrier
DA AU card                                                               *
DA SC card                                                               *
DA TU card                                                               *
DA CT RF card (C2 band)                                                  *
DA Modem Card                                                            *
DA Shelf PSU                                                             *

DA Access Concentrator rack
Access Concentrator "carcus" rack with cables and power                  *
distribution paneland "standard" AC rack vent and blanking panels
DA Access Concentrator shelf (powder coat painted)                       *

DA Access Concentrator Shelf Card set for 1 RF carrier
DA SC card                                                               *
DA TU card                                                               *
DA Shelf PSU                                                             *

Subscriber Terminals
ST-L128 Leased Line Data Terminal (Indoor and X3 Outdoor Units)          *
ST L128 PSU - 220Vac, 3-prong (US standard) power plug                   *
25m Drop Cable with one end connectorised and connector kit              *

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

Description                                                             Qty
-------------------------------------------------------------------------------
Sitespan
Hardware / Software Platform                                             *
Sitespan Client / Server License                                         *
Shelf License (per shelf)                                                *
STMON License and Media                                                  *

Misc
System Spares Set                                                        *
CT Installation and Maintainence Tools                                   *
ST Installation Tools                                                    *
Survey Tool                                                              *
Pump-up Mast for Survey Tool                                             *

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

                             Detailed Spares List

-------------------------------------------------------------------------------
Description                                                        Qty
-------------------------------------------------------------------------------
CT Rack + RF Plug in cards
EPI PSU                                                             *
X3 - RF Diplexer and LNA                                            *
Combiner Mon                                                        *
Combiner Mon PSU                                                    *
Dual Power Amplifier                                                *

DA Modem Shelf Cards
DA AU card                                                          *
DA SC card                                                          *
DA TU card                                                          *
DA CT RF card (X3 Band)                                             *
DA Modem Card                                                       *
DA Shelf PSU                                                        *

DA Access Concentrator Shelf Cards
DA SC card                                                          *
DA TU card                                                          *
DA Shelf PSU                                                        *

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

                                   ANNEX B

                                      OF

                             CONTRACT NO. CN99-002

                               AZCOM-ACL PROTOCOL

         PROVISIONING, ENGINEERING, FURNISHING, INSTALLATION, TESTING
                               AND COMMISSIONING

                                    FOR THE

                         ESTABLISHMENT OF A COMPLETE
                        WIRELESS ACCESS SYSTEM NETWORK

                               OCTOBER 25, 1999
<PAGE>

                               TABLE OF CONTENTS

        1. Project Description

        2. Definitions

        3. Responsibilities of ACL

                3.1 Supply of Equipment, Spares, Tools & Test Equipment and
                        Documentation

                3.2 Design and Engineering

                3.3 Installation, Testing and Commissioning

                3.4 Foreign and Local Training

                3.5 Emergency Technical Assistance

                3.6 Inland Transportation

                3.7 Storage

        4. Responsibilities of AZCOM

        5. Technical Details

        6. Design Review Meeting

        7. Implementation Schedule

        8. Factory Testing and Inspection

        9. System Acceptance

       10. Maintenance Spares

       11. Tools and Test Equipment

       12. Repair Service

       13. Documentation

       14. Warranty

List of Attachments
        Attachment 1 Scope of Work
        Attachment 2 Network Configuration and Requirements
        Attachment 3 Technical Specifications
        Attachment 4 Interface Configuration
        Attachment 5 Deployment Plan
        Attachment 6 Training Program
<PAGE>

                               AZCOM-ACL PROTOCOL

This document defines the technical details of the Scope of Work as well as the
responsibilities of AZ COMMUNICATIONS NETWORK INCORPORATED and AIRSPAN
COMMUNICATIONS LIMITED in the implementation of the Project covered by Contract
No. CN99-002.

1.      PROJECT DESCRIPTION

        This Project covers the design, engineering, supply, installation,
        testing and commissioning of an integrated turnkey project for the
        establishment of a complete network. It includes the following:

        1.1.    Base Stations
                The base stations, at X3 Band, shall be capable of supporting
                the following number of Subscriber Terminals:

Location               Year 1    Year 2  Year 3  Year 4 Year 5 Year 6 Year 7
---------------------------------------------------------------------------
Manila 1                 *          *        *      *      *      *      *
Cavite                   *          *        *      *      *      *      *
Calamba                  *          *        *      *      *      *      *
RBS ???                  *          *        *      *      *      *      *
P. Princesa              *          *        *      *      *      *      *
Batangas                 *          *        *      *      *      *      *
Lucena                   *          *        *      *      *      *      *
Legaspi                  *          *        *      *      *      *      *
Naga                     *          *        *      *      *      *      *
Manila 2                 *          *        *      *      *      *      *
San Fernando, LU         *          *        *      *      *      *      *
Baguio                   *          *        *      *      *      *      *
Dagupan                  *          *        *      *      *      *      *
Angeles                  *          *        *      *      *      *      *
Malolos                  *          *        *      *      *      *      *
Cabanatuan               *          *        *      *      *      *      *
Tarlac                   *          *        *      *      *      *      *
Cebu                     *          *        *      *      *      *      *
Bacolod                  *          *        *      *      *      *      *
Iloilo                   *          *        *      *      *      *      *
Dumaguete                *          *        *      *      *      *      *
Davao                    *          *        *      *      *      *      *
Gen. Santos              *          *        *      *      *      *      *
Iligan                   *          *        *      *      *      *      *
Zamboanga                *          *        *      *      *      *      *
Cagayan de Oro           *          *        *      *      *      *      *
BST 1                    *          *        *      *      *      *      *
BST 2                    *          *        *      *      *      *      *
BST 3                    *          *        *      *      *      *      *
BST 4                    *          *        *      *      *      *      *
BST 5                    *          *        *      *      *      *      *
BST 6                    *          *        *      *      *      *      *
BST 7                    *          *        *      *      *      *      *
BST 8                    *          *        *      *      *      *      *
-------------------------------------------------------------------------------
Increment                *          *        *      *      *      *      *
Cumulative               *          *        *      *      *      *      *
-------------------------------------------------------------------------------

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

        The Network shall be designed to accommodate the above projected growth
        in capacity. Note that the above does not include allocation for
        spares.

1.2.    Subscriber Terminals using Code Division Multiple Access (CDMA) wireless
        air interface to connect the subscriber to the Base Station at X3 Band
<TABLE>
<CAPTION>
Location               Year 1  Year 2  Year 3  Year 4  Year 5  Year 6  Year 7 Total
-----------------------------------------------------------------------------------
<S>                     <C>     <C>     <C>     <C>     <C>     <C>     <C>    <C>
Manila South             *       *       *       *       *       *       *      *
Cavite                   *       *       *       *       *       *       *      *
Calamba                  *       *       *       *       *       *       *      *
RBS                      *       *       *       *       *       *       *      *
Batangas                 *       *       *       *       *       *       *      *
Legaspi                  *       *       *       *       *       *       *      *
Manila North             *       *       *       *       *       *       *      *
San Fernando, LU         *       *       *       *       *       *       *      *
Angeles                  *       *       *       *       *       *       *      *
Malolos                  *       *       *       *       *       *       *      *
Cabanatuan               *       *       *       *       *       *       *      *
Tarlac                   *       *       *       *       *       *       *      *
Cebu                     *       *       *       *       *       *       *      *
Iloilo                   *       *       *       *       *       *       *      *
Davao                    *       *       *       *       *       *       *      *
Cagayan de Oro           *       *       *       *       *       *       *      *
Baguio                   *       *       *       *       *       *       *      *
Dagupan                  *       *       *       *       *       *       *      *
Bacolod                  *       *       *       *       *       *       *      *
General Santos           *       *       *       *       *       *       *      *
Lucena                   *       *       *       *       *       *       *      *
Naga                     *       *       *       *       *       *       *      *
Iligan                   *       *       *       *       *       *       *      *
Puerto Princesa          *       *       *       *       *       *       *      *
Dumaguete                *       *       *       *       *       *       *      *
Zamboanga                *       *       *       *       *       *       *      *
BST 1                    *       *       *       *       *       *       *      *
BST 2                    *       *       *       *       *       *       *      *
BST 3                    *       *       *       *       *       *       *      *
BST 4                    *       *       *       *       *       *       *      *
BST 5                    *       *       *       *       *       *       *      *
BST 6                    *       *       *       *       *       *       *      *
BST 7                    *       *       *       *       *       *       *      *
BST 8                    *       *       *       *       *       *       *      *
-----------------------------------------------------------------------------------
Total                    *       *       *       *       *       *       *      *

Note that the above does not include allocation for spares.
</TABLE>

[*] Certain information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

<PAGE>

        1.3. Supply of Spares

        1.4. Supply of Maintenance Tools and Test Equipment

        1.5. Documentation

        1.6. Installation, Testing and Commissioning Services

        1.7. Foreign and Local Training Services

        1.8. Inland Transportation and Storage

        1.9. Emergency Technical Assistance

        Please refer to Attachments 1 and 2 for the Scope of Work and Network
        Configuration and Requirements respectively.

2.      DEFINITIONS

        All defined terms in Contract No. CN99-002, when used in this document,
        shall have the same meaning as in the Contract stated. The following
        additional terms shall have the meanings as indicated hereunder:

        Inland Transportation   The delivery of Equipment from the Manila
                                seaport and/or airport to the storage area and
                                Job Sites.

        Installation            The assembly, mounting and wiring of the
                                Equipment and consequently the testing of the
                                Equipment.

        Job Site                The premises where the Work shall be performed,
                                but not including the subscriber premises.

        Pre-Acceptance Test     The execution of measurements and the necessary
                                adjustments of the parameters and the
                                performance of the Equipment working as a System
                                before the System Acceptance Test. The test is
                                required to ascertain compliance of the
                                Equipment with the Specifications

        Network                 The complete configuration of the Equipment from
                                the frame relay switching system, base stations,
                                up to the subscriber terminals providing managed
                                data communication connectivity and other
                                services to the subscribers.

        Ready for Service       The date the Project shall be available for
                                commercial service.
<PAGE>

        Site Survey             The exploration of Job Sites to determine the
                                existing conditions.

        System                  A part or segment of the Network which can be
                                put into workable commercial operation.

        Warranty                The written assurance of ACL to AZCOM that the
                                Equipment and Spares delivered by ACL fully
                                complies with the Specifications.
<PAGE>

3.      RESPONSIBILITIES OF ACL

        3.1.    Supply of Equipment, Spares, Tools & Test Equipment and
                Documentation

                3.1.1.  ACL shall supply and deliver all Equipment necessary to
                        establish, operate and maintain a complete working
                        Network under this Project as described in Section 1 to
                        conform with the applicable provisions of the Technical
                        Specifications (Attachment 3) as contained in this
                        Annex B of Contract No. CN99-002.

                3.1.2.  The list of Equipment, Spares and tools and test
                        equipment to be provided are indicated in Annex A.

                3.1.3.  All Equipment to be supplied by ACL shall be pre-wired,
                        pre-assembled and tested in the country of origin in
                        accordance with the existing standard practices of the
                        telecommunications organization operating in the said
                        country.

                3.1.4.  ACL agrees that all items under Annex A and the
                        attachments to this Protocol are included in the Price
                        and no claim for additional payment on the grounds of
                        omitted items will be entertained. On the basis of the
                        updated/revised bill of materials after detailed
                        engineering, a contract cost adjustment shall be
                        mutually agreed by both parties for any modifications
                        made by AZCOM that shall result to the revision of
                        previously agreed Equipment quantities based on the
                        accepted unit prices offered by ACL. Likewise,
                        corresponding price reduction based on unit prices
                        offered shall be made in case ACL recommends a change or
                        modification resulting in the reduction of Equipment
                        quantities to be provided. However, any expenses caused
                        by modifications and/or changes made by ACL to meet the
                        System performance requirements, circuit requirements
                        and other performance criteria as contained in this
                        Protocol such that said modification and/or changes will
                        result to an increase in Equipment quantity and/or
                        change in types of Equipment/materials and services
                        shall be borne by ACL. However, cost implications due to
                        change in Equipment quantities and services caused by
                        reasons of no fault of ACL shall be mutually discussed
                        and agreed upon by both parties.

        3.2.    Design and Engineering

                3.2.1.  ACL shall undertake the design and engineering of the
                        Project as described in Section 1 and shall assume full
                        and overall responsibility of the Equipment to be
                        installed under this Project as to:

                        a. engineering and operational consistency
                        b. functional integration of the Network
                        c. operational and functional interconnection with AZCOM
                           frame relay network in accordance with Attachment 4
<PAGE>

                3.2.2.  The design and engineering shall include the following
                        among others:

                        a. site survey
                        b. preparation of engineering plans
                        c. preparation of radio frequency plans
                        d. preparation of bill of materials

                3.2.3.  Prior to the preparation of the final detailed plans,
                        the preliminary design such as site layout and floor
                        layout for the network node shall be submitted to AZCOM
                        for concurrence one (1) month prior to the commencement
                        of installation (for the first five Systems, it shall be
                        submitted 1 week before installation). AZCOM reserves
                        the right to modify or alter any or all parts of the
                        design. However, in such cases, any changes should be
                        discussed and mutually agreed by both parties so that
                        the original time schedule as per Attachment 5 can be
                        achieved.

                        For the Base Stations and Subscriber Terminals, a common
                        or typical installation document shall be provided for
                        all sites.

                3.2.4.  ACL shall supply all the information required for the
                        installation, testing and maintenance of the Equipment.

                3.2.5.  ACL shall supply in two (2) sets, all the document
                        necessary for the installation, testing and maintenance,
                        of the Equipment. The installation documents to be
                        provided by ACL for each station/switch location shall
                        include, but shall not be limited to the following:

                        - Equipment Layout Plans
                        - Floor Layout Plans
                        - MDF/DDF and Terminal Block Wiring Plans
                        - Network Configuration Plans
                        - Cabling Plans
                        - Grounding Plans
                        - Power Distribution Plans
                        - Installation Instructions
                        - Interface Configuration
<PAGE>

                3.2.6.  Two (2) sets of final plans and drawings for each radio
                        station/switch location, bill of materials, and
                        implementation Schedules, shall be submitted to AZCOM
                        prior to the commencement of the Installation for
                        concurrence. AZCOM reserves the right to modify or alter
                        any or all parts of the plan. However in such cases, any
                        changes should be discussed and agreed upon by both
                        parties so that the original time schedule as per
                        Attachment 5 can be achieved.

                3.2.7.  All installation plans to be submitted by ACL to AZCOM
                        shall be signed and sealed by a Electronics and
                        Communications Engineer for switching and transmission
                        systems and Electrical Engineer for electrical systems.

                3.2.8.  ACL shall provide all grounding connections for the
                        Equipment to be supplied for this Project.

                3.2.9.  ACL shall submit to AZCOM within two (2) weeks after
                        signing of this Contract the following Equipment
                        information for each site:

                        - Equipment dimension, weight and floor loading
                        - Equipment AC power consumption
                        - Heat dissipation
                        - Typical Equipment Layouts

        3.3.    Installation, Testing and Commissioning

                3.3.1.  ACL shall be responsible for the installation, testing
                        and commissioning of all Equipment to be provided under
                        this Contract.

                3.3.2.  Antenna installation and orientation shall also be
                        handled by ACL.

                3.3.3.  ACL shall likewise install one (1) Subscriber Terminal
                        per radio channel at the subscriber premises in
                        accordance with the ST Installation Procedure document
                        that will be delivered within two (2) weeks from signing
                        of this Contract. The number of Subscriber Terminals
                        installed by ACL shall in no case be less than twenty
                        five (25).

                3.3.4.  ACL shall install, test and commission 48VDC power
                        equipment provided by AZCOM for use of the Equipment.
                        Details of the equipment are provided in Attachment 3.2.

                3.3.5.  ACL shall provide the necessary number with the
                        corresponding qualifications of personnel required for
                        the installation of the Equipment. The Installation
                        shall be in accordance with the installation documents
                        and the appropriate Philippine government regulations.

                        The Installation shall include, but not be limited to
                        the following:

                        - Mechanical installation of the system
<PAGE>

                        - Interconnection of the Equipment and internal cabling
                        - Interconnection of the Equipment to the AC power
                          supply and ground terminals
                        - Interconnection to AZCOM frame relay network in
                          accordance with Attachment 4

                3.3.6.  Other tools and test equipment which may be necessary
                        for the implementation of the project and which are not
                        purchased under this Contract shall be for the account
                        of ACL including all cost and expenses which may be
                        incurred in connection with the importation and re-
                        exportation of ACL's tools and test equipment to and
                        from their place of origin. This excludes specialized
                        tools and equipment required by AZCOM to perform
                        Performance Monitoring.

                3.3.7.  ACL shall inform AZCOM of the schedule of Installation,
                        testing and commissioning activities at least one (1)
                        week before the start of each activity.

                3.3.8.  ACL shall provide personnel for the entire project
                        implementation period who will coordinate with AZCOM on
                        all activities related to the planning, installation and
                        acceptance testing/commissioning of the complete
                        Equipment as described in Section 1.

                3.3.9.  Acceptance test procedures, schedules, dates and
                        standards shall be prepared by ACL and submitted to
                        AZCOM at least two (2) weeks before the scheduled System
                        Acceptance Testing. AZCOM shall signify the concurrence
                        or comments for modification within one (1) week
                        thereafter.

                3.3.10. ACL shall arrange the time-schedule of the installation,
                        commissioning, acceptance testing and other related
                        activities of the entire project and inform AZCOM
                        immediately for any changes. ACL shall submit monthly
                        reports to AZCOM showing actual project status of
                        development in terms of:

                        - Equipment and materials delivery, quantities
                          installed or in storage, location, etc.
                        - Current status of Work
                        - Actual work progress data like percent of completion
                          of the Project or parts
                        - Installed and tested Equipment or System
                        - Summary of test results
                        - Variances and explanations
<PAGE>

                3.3.11. ACL shall analyze reasons and consequences of delays
                        and/or advancement of any particular project activity.

                3.3.12. ACL shall inform AZCOM of any problem that may arise
                        prior to or during installation and commissioning.

        3.4.    Foreign and Local Training

                3.4.1.  ACL shall provide a suitable, adequate and comprehensive
                        training program for AZCOM engineers, operation and
                        maintenance personnel.

                3.4.2.  Foreign training shall be conducted at ACL factory
                        and/or training facility in manufacturer's locality. The
                        following expenses associated in the training program,
                        including instructors' fees; the cost of training
                        materials and venue; lodging; local transportation;
                        shall be for the account of ACL. ACL shall, likewise,
                        provide all necessary assistance to AZCOM's personnel in
                        visa arrangements for the periods of their stay in the
                        manufacturer's locality.

                3.4.3.  For the instructor for the local training, ACL shall
                        bear all expenses which includes the cost of travel
                        between ACL's country and the Philippines; and the cost
                        of the instructor's accommodation and subsistence
                        allowance in the Philippines.

                3.4.4.  Training Program

                        3.4.4.1. The training program as described in Attachment
                                 6 should assure AZCOM to be self-sufficient and
                                 independent to engineer, install, maintain and
                                 operate the System.

                        3.4.4.2. The training course for engineers shall be
                                 aimed towards future engineering of the
                                 Equipment, redimensioning, rearrangement,
                                 reconfiguration and expansion of the System,
                                 and providing technical support to operation
                                 and maintenance group as the need arises.

                        3.4.4.3. The training course for operation and
                                 maintenance personnel shall be aimed towards
                                 operation, maintenance and repair of the
                                 Equipment to be installed.

                        3.4.4.4. The training course for installation and
                                 testing personnel shall include an overall
                                 knowledge of hardware and operational aspects
                                 of the Equipment and shall cover the
                                 installation practices, acceptance testing,
                                 testing operation practices and maintenance
                                 standard practices.
<PAGE>

-------------------------------------------------------------------------------
Training Course                              No. of  Location  No. of weeks
                                             Trainees
-------------------------------------------------------------------------------
Planning & Engineering/
Operation & Maintenance
-------------------------------------------------------------------------------
Radio Planning                                    6  Foreign   2 days
-------------------------------------------------------------------------------
WAS Eng'g/Oprns/Maint.                            6  Foreign   3 days
-------------------------------------------------------------------------------
Installation & Testing
-------------------------------------------------------------------------------
CT Installation                                   6  Local     1 week
-------------------------------------------------------------------------------
ST Installation                                  10  Local     1 week
-------------------------------------------------------------------------------
Troubleshooting & Repair                          4  Local     1 week
-------------------------------------------------------------------------------

                        3.4.4.5. On-the-job training shall be done in accordance
                                 with the implementation schedule as per
                                 Attachment 5.

                        3.4.4.6. As part of the Installation services, ACL shall
                                 accommodate AZCOM installation and testing
                                 personnel to participate in the installation
                                 and testing.

                        3.4.4.7. ACL shall provide the corresponding instruction
                                 aids (slides, transparencies and the like) and
                                 training manuals for use of AZCOM.

                        3.4.4.8. ACL shall make available the presence of
                                 qualified trainer expert on the topics
                                 mentioned in Attachment 6.

                        3.4.4.9. The language of instruction shall be in English
                                 and all instructors shall be proficient in both
                                 written and spoken English. AZCOM reserves the
                                 right to request immediate replacement if any
                                 instructors is found to be deficient.

        3.5.    Emergency Technical Assistance

                ACL shall provide emergency technical assistance to AZCOM during
                the Warranty Period, which shall include the following:

                3.5.1.  A technical assistance office, which shall be
                        responsible for the emergency technical assistance
                        obligations, shall be located in Manila for the duration
                        of the technical assistance period.

                3.5.2.  ACL shall provide emergency technical assistance for
                        both hardware and software as required by AZCOM within
                        two (2) hours of a request for such assistance. The two
                        (2) hour response requirement applies at any time other
                        than normal duty hours. ACL's technical assistance
                        representative shall ensure availability at all times
                        for recall. The technical assistance shall be initially
                        conducted from Manila office by means of verbal advices
                        or written instructions to AZCOM employees in charge of
                        the System operation. If within two (2) hours after such
                        consultation, the System cannot be put into normal
                        operation, or if the faulty part cannot be identified,
                        ACL's expert shall be on the
<PAGE>

                        respective site within twenty four (24) hours to provide
                        on-site technical assistance.

                3.5.3.  The technical assistance shall include the following
                        services:

                        3.5.3.1. Technical assistance in a manner such that
                                 AZCOM will progressively become qualified in
                                 maintaining and operating the Equipment.

                        3.5.3.2. Assist in troubleshooting, correcting
                                 deficiencies, inspection, and use of on site
                                 test equipment.

                        3.5.3.3. Assist AZCOM in test and analysis to determine
                                 defective components and shipment of defective
                                 components to ACL's plant for repair.

                        3.5.3.4. Maintain records of all technical assistance
                                 performed, and submit monthly reports of the
                                 same to AZCOM.

                        3.5.3.5. Propose maintenance support scheme for both
                                 hardware and software. Define routine and
                                 corrective maintenance routines for any System.

                        3.5.3.6. Provide software support on the Equipment at no
                                 cost to AZCOM and shall assist with regard to
                                 establishment of AZCOM's own software
                                 specialist group and software support
                                 facilities.

                        3.5.3.7. Provide, at no cost to AZCOM during the
                                 warranty period, software updates as and when
                                 introduced by ACL for use in connection with
                                 the offered Equipment. A software update means
                                 an error corrected version without change of
                                 features of the last release delivered.

                        3.5.3.8. Provide assistance in the design work
                                 particularly in the introduction of new
                                 techniques for sub-systems to be interfaced
                                 with other types of equipment or any other
                                 future engineering requirements.

                        3.5.3.9. Provide assistance for the reconfiguration and
                                 the necessary documentation for such
                                 reconfiguration.

                        3.5.3.10.The technical assistance shall supplement the
                                 performance of AZCOM's operations and
                                 maintenance personnel to ensure effective
                                 "operation and maintenance" of the System. This
                                 includes, subject to AZCOM's approval, setting
                                 up specific operation and maintenance methods,
                                 procedures and conventions, and assistance
                                 during implementation.

                        3.5.3.1l.Coordination of supplemental schedules,
                                 services and supplies including suggestions,
                                 shall be by monthly review meetings in Manila.
                                 Emergency co-ordination shall be by the most
                                 expeditious means.
<PAGE>

        3.6.    Inland Transportation

                3.6.1.  ACL shall provide at its own expense the necessary
                        vehicle for the transportation of its personnel in the
                        Philippines.

                3.6.2.  ACL shall provide at its own expense the necessary
                        inland transportation to deliver the supplied Equipment
                        from ACL's storage area to Job Sites. All risks involved
                        in the transportation and storage of the Equipment shall
                        be ACL's responsibility.

        3.7.    Storage

                Storage of all supplied items under Contract No. CN99-002 shall
                be the responsibility of ACL. The security and store keeping of
                materials and Equipment shall also be the responsibility of ACL.
<PAGE>

4.      RESPONSIBILITIES OF AZCOM

        4.1.    AZCOM under ACL's supervision shall be responsible for the
                System Acceptance of the Equipment under this Agreement.

        4.2.    AZCOM shall provide the following:

                4.2.1.  Building space for Equipment and facilities like
                        electrical, air conditioning/ventilation and other
                        building requirements mutually agreed by AZCOM and ACL.

                4.2.2.  Security for Equipment at the Job Site.

                4.2.3.  AC power including the necessary mains and ground
                        connections in the main distribution panel.

                4.2.4.  Installation of DDF and patch panel provided by ACL.

                4.2.5.  The necessary plans of the equipment rooms with data
                        about positions of Equipment as well as outlets of
                        central main current and grounding connections which are
                        necessary for the project and construction planning.

                4.2.6.  Assistance to ACL's survey personnel in determining the
                        local information necessary for station planning.

                4.2.7.  Custom clearance of the deliveries on best efforts
                        basis. ACL shall inform AZCOM about its deliveries as
                        quickly as possible.

                4.2.8.  Vehicles necessary for the transportation of personnel
                        of AZCOM during the entire Work.

                4.2.9.  Necessary data on existing facilities required by ACL
                        for the Project and construction planning such as floor
                        plan/equipment layouts of stations.

                4.2.10. AZCOM shall favorably endorse ACL's applications for the
                        necessary visas and work permits of its personnel.

                4.2.11. AZCOM shall provide to ACL for each System anomaly
                        reports in accordance with the procedure to be agreed
                        upon by both parties after the start of technical
                        assistance.

                4.2.12. AZCOM shall perform regular System maintenance as
                        required under ACL's maintenance recommendation.

<PAGE>

5.      TECHNICAL DETAILS

        5.1.    The Equipment shall have sufficient flexibility to accommodate
                future growth, introduction of new services, and for subscribers
                to modify services to meet their needs. The system architecture
                shall meet all the relevant international recommendations, and
                use of industry standards operating system that allows
                commercial software to be used for the service management
                system. Its architecture shall aim for open network provisioning
                and multi-vendor environment.

        5.2.    The Equipment shall be able to economically permit expansion of
                the Network without degradation or interruption of service. Such
                expansion maybe due to Network growth or due to increase in
                loading resulting from changes in traffic pattern.

        5.3.    The Equipment shall also conform with the provisions of the
                latest issue of the Electronics Code of the Philippines and
                shall be designed considering the Philippine's environmental
                conditions.

        5.4.    ACL shall ensure that the Equipment and materials delivered
                under this Project shall conform with the latest international
                and national standards and the Technical Specifications detailed
                in Attachment 3.

        5.5.    The Network shall comply with the following availability
                percentages:

                --------------------------------------------------------------
                Distance of ST from CT                  Availability
                --------------------------------------------------------------

                Within 2 Kms                            99.86%

                Within 2 to 5 Kms                       99.7%

                Within 5 to 15 Kms                      99.5%

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

                The above availability percentages include effects of equipment
                reliability, equipment failure rate and atmospheric effects.
<PAGE>
6.      DESIGN REVIEW MEETING

        6.1.    The first design review meeting will be held in Manila three (3)
                weeks after signing of this Contract or at any other time
                mutually agreed by both parties.

        6.2.    All technical details necessary for the implementation shall be
                discussed and mutually agreed upon by both parties during the
                design review meeting.

        6.3.    Other design review meetings may be held according to necessity.

        6.4.    The schedules of other meetings will be discussed and mutually
                agreed upon by both parties.

        6.5.    Any change in the implementation Schedule proposed by AZCOM and
                ACL shall be discussed and mutually agreed upon by both parties.

        6.6.    The foreign training schedule shall be discussed and mutually
                agreed upon by both Parties.

7.      IMPLEMENTATION SCHEDULE

        7.1.    Details of the proposed time schedule for the design and
                engineering, manufacturing, delivery, installation, testing,
                commissioning and acceptance shall be in accordance with
                Attachment 5.

        7.2.    ACL shall be responsible for the timely delivery of the
                Equipment and shall ensure that the time schedule in accordance
                with Attachment 5 is followed strictly.

8.      FACTORY TESTING AND INSPECTION

        8.1.    Two (2) representatives of AZCOM shall witness factory test of
                the Equipment for a period of three (3) calendar days, at ACL's
                designated factories/plants. ACL shall provide all necessary
                assistance to AZCOM's representatives in visa arrangements for
                the period of their stay in the Manufacturer's locality.

        8.2.    ACL shall give an advance notice of at least two (2) weeks (or
                other mutually agreed upon time) prior to factory testing and
                submit to AZCOM the test/inspection procedures also at least two
                (2) weeks prior to the same.

9.      SYSTEM ACCEPTANCE

        9.1.    System Acceptance

                9.1.1.  On the completion of the Installation of the Equipment
                        and, when a System is in ACL's opinion has been
                        substantially completed, ACL shall give five (5) days
                        prior written notice to AZCOM regarding its intention to
                        commence the System Acceptance Test.
<PAGE>
        9.1.2.  Substantial completion shall mean that except for some minor
                deficiencies (which are enumerated below), all the materials,
                equipment and accessories have been properly installed or
                constructed, and the technical requirements and specifications
                are fully complied. Minor deficiencies shall be limited to the
                following and shall be corrected by ACL within three (3) months,
                starting from the issuance of System Acceptance Certificate.

                a. Minor faults or defects that will not affect the System's
                   normal operation.

                b. Defective modules/units which are not service affecting that
                   are immediately replaceable from spare parts pool.

                c. Lacking spare modules/units and accessories at site. Spare
                   modules mean initially un-assigned modules/units and/or
                   assigned modules/units not affecting the project execution at
                   any of the sites.

                d. Incomplete equipment/distributor labelling, instruction
                   booklets, As-Built drawings and documentation.

        9.1.3.  One (1) copy of the agreed test documents shall be made
                available to AZCOM two (2) weeks prior to the commencement of
                the System Acceptance Test.

        9.1.4.  The System Acceptance Tests on completely installed Systems
                shall be performed by AZCOM, under the supervision of ACL in
                accordance with the agreed Acceptance Test Program.

                Test shall include but not be limited to:

                a. visual inspection;

                b. review of the factory test results;

                c. tests to verify that technical performance is in compliance
                   with the Specifications;

                d. end-to-end link test;

        9.1.5.  After the completion of the above tests, AZCOM, as part of the
                System Acceptance Test, shall continuously observe and monitor
                for forty eight (48) days the stability of the performance of
                the overall System which is hereinafter called "stability
                testing".

                During this period, no adjustment shall be made on any part of
                the System. Should there be any fluctuation in the parameters
                observed in any section of the System, the cause of the
                fluctuation shall be investigated and the faults causing such
                abnormalities shall be promptly rectified by ACL to meet the
                Specifications and the requirements of the Contract. After
                rectification of the faults, the stability testing shall be
                continuously observed and monitored for seven (7) consecutive
                days and shall be repeated and cease only when the overall
                System has attained the level of stability in its performance in
                accordance with the Specifications and the requirements of the
                contract.
<PAGE>
        9.1.6.  Any incomplete or unsatisfactory aspect of the System or of the
                performance thereof shall be dealt with in accordance with the
                following:

                9.1.6.1. In the event that the results of System Acceptance
                         Tests carried out are not in accordance with the
                         requirements of the Contract, action shall be taken by
                         ACL to locate and isolate the faults.

                9.1.6.2. Any faults located by ACL or notified to ACL by AZCOM
                         shall be rectified promptly by ACL.

                9.1.6.3. Each corrective action shall be performed by ACL and
                         witnessed by AZCOM. A detailed written report
                         containing particulars relating to the faults together
                         with the results of the re-testing shall be submitted
                         to AZCOM immediately after the corrective actions.

                9.1.6.4. ACL shall recommend the Equipment for re-testing only
                         when all faults have been corrected to meet the
                         requirement of the Contract. AZCOM may also perform
                         additional tests it deems necessary. Such additional
                         test procedures shall be agreed upon by both parties.

                9.1.6.5. The rectification of any particulars referred to in
                         this clause shall be carried out by ACL at its own
                         expense and effected promptly upon receipt of notice
                         thereof.

                9.1.6.6. If ACL fails to rectify any such particulars within a
                         reasonable time, AZCOM may elect to have any or all of
                         such particulars rectified through other means. In
                         which event ACL shall compensate AZCOM, within the
                         limits of ACL's liability under the Contract, for all
                         losses, damages, costs, charges, and expenses which
                         AZCOM may sustain by reason of ACL's failure to effect
                         the necessary corrective measures on the particulars
                         referred to.

        9.1.7.  Each System will be initially accepted after ACL has
                demonstrated to AZCOM that all the requirements of the
                Specifications have been complied with, and provided that the
                result shows that:

                a. the System is functioning properly according to the technical
                   specifications; and

                b. the requirements of the Contract have been met.

                In which event, ACL will be granted by AZCOM a certificate of
                System Acceptance five (5) days from the date of System
                Acceptance. The date of the certificate shall be the completion
                date of the stability test.

        9.1.8.  In the event that AZCOM does not grant a certificate of System
                Acceptance but nevertheless AZCOM and ACL mutually agree in
                writing that the System can be put in commercial service, ACL
                shall issue a waiver on their rights for the
<PAGE>
                issuance of System Acceptance certificate up to a certain period
                of time. Such shall not relieve ACL of his responsibility under
                this Contract and ACL shall continue to be responsible for any
                damage attributable to any part of the System which requires
                corrective action.

        9.1.9.  Items requiring corrective actions and items not provided shall
                be jointly identified by AZCOM and ACL. When the outstanding
                corrective action has been taken and the outstanding items
                delivered and approved by AZCOM in writing, a certificate of
                System Acceptance will be granted.

        9.1.10. After the execution of the System Acceptance Test protocol, the
                representative from AZCOM shall indicate the outcome of each
                test. Providing there are no major failures, the representative
                of AZCOM shall sign and date the test protocol, indicating that
                the System is acceptable.

9.2.    Performance Monitoring

        During the Warranty Period the Network shall be, at AZCOM's discretion,
        tested to ensure that the System performance is in line with the System
        specifications.

        These tests shall be as follows:

        - System Functionality Tests
        - Long Term BER Tests
        - Output Power Measurements on the Base Station

        Before any test is conducted, AZCOM shall notify ACL two weeks in
        advance that a test is to be conducted. ACL shall have the option of
        being present at any test. If a test is conducted whilst ACL is not
        present and the results are a failure, AZCOM shall notify ACL so that
        the test can be repeated after an investigation by ACL. If the test
        fails again ACL shall be given 30 days to apply corrective action. If
        after 30 days no corrective action has been taken or a subsequent test
        again fails, the System under test shall be deemed to have failed
        Performance Monitoring and the Warranty Period shall be extended.

        Once a system has failed Performance Monitoring ACL shall be required to
        take corrective action, including the complete replacement of the System
        in question.

        The System Functionality tests as defined by AZCOM may include, but are
        not limited to the following:

        - System Installation and Service Provisioning
        - System Connectivity: 64kbit/s and 128kbit/s Leased Line Data
          Services
        - Network Management System functionality test

        The Long Term BER Test shall be:
        - 168 hour BER. A Pass shall be when the average BER is better than
        10/-7/.

        The Output Power Test shall be:
        - CT Output Power is within 1.5dB of commissioned level.
<PAGE>
        (Commissioned values are as defined within the Acceptance Test Protocol/
        Results)

9.3.    Acceptance for Spares and Tools and Test Equipment

        9.3.1.  The Spares shall be accepted prior to the System Acceptance Test
                of the last System, while the Acceptance Test of tools and test
                equipment shall be conducted prior to their delivery to AZCOM's
                warehouse.

        9.3.2.  Acceptance test for Spares and tools and test equipment shall be
                conducted according to the agreed test procedures which shall be
                submitted by ACL to AZCOM six (6) weeks prior to acceptance
                test.

        9.3.3.  This test shall be conducted once and shall be considered as
                final. After passing the acceptance test successfully,
                acceptance certificate for Spares and tools and test equipment
                shall be issued within two (2) weeks therefrom. If AZCOM does
                not issue the said certificate within two (2) weeks for reasons
                not attributable to the fault of ACL, the acceptance certificate
                shall be deemed to have been issued by AZCOM.

        9.3.4.  Warranty of Spares, tools and test equipment shall be for
                eighteen (18) months from the date of Acceptance.

9.4.    Subscriber Terminal Acceptance Test

        Upon the delivery of the Subscriber Terminals to ACL's warehouse in the
        Philippines, an acceptance test shall be performed. After a successful
        ST Acceptance Test and subsequent issuance of an Acceptance Test
        Certificate by AZCOM the Warranty Period on the subscriber terminals
        shall start.

        The Subscriber Terminal Acceptance Test shall be in two parts. The
        second test shall only be undertaken if the first test fails.

        The first test shall be a sample test. AZCOM shall randomly select 4% of
        subscriber terminals within a delivery batch. These terminals shall be
        tested for normal leased line data operation, and be given a 60-minute
        BER test conducted over the air. The BER results shall be better than
        10 /-7/.

        If during this first test more than 20% of the terminals fail, the
        second test shall be performed. If less than 20% of the terminals fail
        the whole batch of Subscriber Terminals shall be accepted and a
        successful acceptance test certificate issued.

        The second test shall be a complete test of all the subscriber
        terminals. This test shall be for normal leased line data operation, and
        include a 60-minute BER test conducted over the air. The BER results
        shall be better than 10 /-7/. Only Subscriber Terminals that pass
        this test shall be accepted by AZCOM.
<PAGE>
10. MAINTENANCE SPARES

        10.1.   The supply of the Spares at reasonable costs shall be available
                for a period of ten (10) years from the date of the System
                Acceptance of the last System. If the manufacture of any of the
                Spares ceases due to technical development, ACL shall supply
                equivalent replacement parts together with the accessories, if
                needed, at reasonable cost. The ordering procedure shall be
                included in the system documentation.

        10.2.   ACL shall guarantee that the quantity of spare parts to be
                supplied with the main Equipment will be sufficient during the
                Warranty Period. If the quantity is not sufficient for the said
                period due to equipment failures caused by faulty design and
                manufacturing defects, ACL shall supply at its own cost or at no
                cost to AZCOM the additional Spares required to cover the
                shortfall.

        10.3.   The list of Spares to be supplied should fully identify the item
                to facilitate future ordering. It should be possible in the
                future to order the needed parts with no prior agreement with
                ACL.

        10.4.   In case Spares will be used during installation and
                commissioning, ACL shall replenish the same prior to the
                acceptance test of the Spares at no cost to AZCOM.

        10.5.   All Spares used during the Warranty Period shall be replenished
                by ACL within one (1) month at no cost to AZCOM.

11.     TOOLS AND TEST EQUIPMENT

        Tools and test equipment to be supplied for the Equipment shall be in
        accordance with Annex A. The tools and test equipment provided under
        this Contract shall be made available for testing and acceptance work
        without any hindrance up to the acceptance of the last System.

12.     REPAIR SERVICE

        ACL shall guarantee the availability of repair services after Warranty
        Period for all repairable Equipment supplied under Contract No. CN99-
        002. The procedures for repair service including turn around time for
        each item shall be mutually agreed upon by the Parties within two (2)
        weeks from signing of this Contract.

13.     DOCUMENTATION

        ACL shall provide the installation documents, operation and maintenance
        manuals and brochures of all Equipment installed within two (2) weeks
        from signing of this Contract. Two (2) complete sets of such
        documents/manuals shall also be provided to Engineering and Operation
        and Maintenance groups. All documentation shall be written in English.
<PAGE>
14.     WARRANTY

        14.1.   ACL shall be fully responsible for the proper functioning of all
                the Systems covered under this Contract during the period from
                System Acceptance up to the end of the Warranty Period.

        14.2.   During the Warranty Period, ACL shall promptly replace/repair
                defective parts at no cost to AZCOM.

        AZCOM and ACL agree that any matter not covered by this protocol shall
        be discussed and mutually resolved in good spirit for the benefit of the
        successful implementation of the Project.

        For: AZCOM                              For: ACL

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

        --------------------------------        ------------------------------
<PAGE>

                              LIST OF ATTACHMENTS

Attachment 1    Scope of Work

Attachment 2    Network Configuration and Requirements

                1. Typical Base Station Diagram

                2. Typical Subscriber Terminal Diagram

                3. WAS Network Diagram

                4. AZCOM Network Diagram

Attachment 3    Technical Specification

                3.1 Wireless Access Network

                    3.1.1 ETSI EN301 124 Specifications

                    3.1.2 Airspan Frequency Plan

                    3.1.3 Technical Reference/Brochure

                3.2 DC Power Supply

Attachment 4    Interface Configuration

Attachment 5    Deployment Plan

Attachment 6    Training Program

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]