Document:

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

 

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

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

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

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

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

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

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

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

1.
Definitions, Preamble, Purpose And Schedules

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

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

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

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

	
      
	
      
	
      “Force
      Majeure Event”
      means the occurrence of fire, casualty, explosion, lightning, accident,
      war (declared or undeclared), armed conflict, civil disturbance, riot, Act
      of God, the enactment, issuance, or application of any law, local by-law,
      regulation, or executive, administrative, or judicial order, acts
      (including delay or failure to act) of any governmental authority, or any
      other cause or causes (whether of the foregoing, nature or not), or any
      other similar or different occurrence, which cause or occurrence is beyond
      the reasonable control of the affected party and whether or not
      foreseeable by such party

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

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

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

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

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

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

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

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

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

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

Page
2

	
       
	
      “Term”
      means three (3) years and three (3) months, commencing on the Effective
      Date, provided
      that the Term may be extended for subsequent one (1) year periods, subject
      to the Parties agreeing on mutually acceptable commercially reasonable
      terms and conditions, where “commercially
      reasonable”
      shall mean terms and conditions which would be expected to be found in a
      comparable contractual arrangement between arms’ length parties, acting
      without other economic constraint or influence, of similar size and
      financial situation for products and/or services similar or comparable to
      those under this Agreement, including, without limitation, price and gross
      margins, and delivery lead times, capital investment required and credit
      quality of the buyer; and provided,
      further,
      that, solely for the period prior to any sale of the FWA Business by
      Airspan to an unrelated third party, (i) twelve (12) months prior to the
      end of the Term as then in effect, the Parties shall enter into
      negotiations to determine such mutually acceptable commercially reasonable
      terms and conditions, (ii) if agreement on such terms and conditions is
      not reached by the date that is nine (9) months prior to the end of such
      Term, such determination shall be submitted to arbitration pursuant to the
      Rules of Conciliation and Arbitration of the International Chamber of
      Commerce then in force, such proceedings to take place in the English
      language in the City of Miami, Florida, before a panel of three (3)
      arbitrators appointed in accordance with the aforementioned rules, (iii)
      if such arbitration has not resulted in a determination on or before the
      end of the Term as then in effect, the terms and conditions of this
      Agreement as in effect during such Term shall be deemed to continue in
      effect until such a determination is reached, at which time such
      determination shall be applied retroactively to the end of such Term, (iv)
      if the terms and conditions determined by such arbitration are acceptable
      to Axtel but are not accepted by Airspan, then the arbitrators shall
      determine the price at which they believe the FWA business would be sold
      in an arms length transaction by parties acting without other economic
      constraint or influence, (v) Axtel shall have the right to purchase the
      FWA Business at such price, and (vi) if the Axtel elects not to purchase
      the FWA Business at such price, then Airspan shall have no continuing
      obligation to Axtel beyond the terms of this Agreement as then in effect.
      

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

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

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

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

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

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

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

	 	 

	 	Annex A - Intentionally
      Left in Blank

	 	Annex B - Change
      Order Procedures and Form of Change Order

	 	Annex C - Description
      of Products

	 	Annex D - Product
      Specifications

	 	Annex E - FWA
      Order Procedure

	 	Annex F - FWA
      Prices

	 	Annex G - Warranty
      Terms and Warranty Services

	 	Annex H- Acceptance
      Procedure New FWA RSS F6 Unit

	 	Annex I - Intentionally
      Left in Blank 

	 	Annex J - Products
      Delivery Times 

	 	Annex K - Minimum
      Purchase Commitment

 

Page
3

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

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

	2.	Orders
      and Order Procedure

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

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

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

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

 

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

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

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

	
      2.5
	
      Intentionally
      Left in Blank. 

Page
4

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

	
      2.7
	
      Any
      changes to this Agreement or an Order initiated by Axtel or Airspan after
      the Effective Date resulting in adjustments to process, job schedule,
      contract price or other requirements thereof may
      be cause for adjustment by Airspan to the prices and to the relevant
      delivery and performance schedules set forth therein. Any
      such adjustment shall be detailed in a change order, a form of which is
      attached hereto as Annex
      B (“Change
      Order”).
      If the Change Order affects any Products for which Airspan has commenced
      manufacturing or has shipped or any Services for which Airspan has
      commenced performance, the adjustment of the price shall include
      reasonable, documented charges incurred by Airspan related thereto. No
      such changes shall be performed until a Change Order has been executed by
      authorized representatives of the Parties. 

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

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

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

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

 

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

	
      3.
      
	
      Delivery
      Terms

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

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

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

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

Page
5

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

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

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

 

	4.	Licensed
      Use of Software

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

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

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

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

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

Page
6

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

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

	4.8	If
      Airspan and Axtel agree that Delivery of Software is to be made
      electronically via File Transfer Protocol, then Delivery of such Software
      by Airspan shall be deemed to have taken place at such time as the
      Software is loaded onto a network server, as designated by Airspan, and
      Axtel has been provided with appropriate instructions and passwords to
      enable Axtel to begin use of such Software. Notwithstanding the foregoing,
      the Parties shall comply with all regulations applicable to importation of
      Software pursuant to applicable law. 

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

 

	5.	Charges,
      Payment and Taxes

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

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

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

	(i)  	
      For
      any Product:

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

	 	 	 

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

		(ii)	For
      any Services:

 

	 	 	 

	 	[*]	upon acceptance of the Order by Airspan,

	 	
      and
      
	
      the
      remainder in equal monthly installments on the last business day of each
      month during the period in which the services are performed.
    

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

Page
7

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

	
      Bank:
	
      Lloyds
      Bank,

      32
      Commercial Way,

      Woking,

      Surrey
      GU21 1ER,

      England

	
      Sort
      Code:
	
      [*]

	
      Account
      Name:
	
      Airspan
      Communications Limited

	
      Account
      No:
	
      [*]

	
      Further
      Instructions
	
      Reference
      Axtel

	 	
      P.O.
      No. _______,

      Payment
      of Invoice No. ____________.

.

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

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

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

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

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

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

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

Page
8

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

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

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

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

	
      5.17
	
      Intentionally
      Left in Blank.

	
      5.18
	
      Intentionally
      Left in Blank. 

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

	5.20	Intentionally
      Left in Blank. 

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

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

	6.	Warranty

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

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

Page
9

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

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

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

	6.5	Single
      Product RSS Equipment.

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

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

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

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

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

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

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

The
foregoing, until such time as:

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

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

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

Page
10

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

	
      6.7
	
      Intentionally
      Left in Blank. 

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

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

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

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

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

	7.	Services

Page
11

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

	
      7.2
	
      In
      addition, Axtel shall be responsible for the accuracy and completeness of
      all data and information that it provides or causes to be provided to
      Airspan. In the event that there are any delays by Axtel in fulfilling its
      responsibilities as stated above, there is a disagreement between the
      parties as to the cooperation required from Axtel, or there are errors or
      inaccuracies in the information provided, Airspan shall be entitled to
      appropriate schedule and pricing adjustments, including storage fees. It
      is understood and agreed that the Services provided by Airspan may include
      the advice and recommendations of Airspan, but all decisions in connection
      with the implementation of such advice and recommendations shall be the
      sole responsibility of, and made by, Axtel, unless such advice and
      recommendations are part of consulting services purchased by Axtel.
      

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

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

	8.	Title
      and Risk of Loss

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

	9.	Installation
      and Commissioning

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

Page
12

	10.	Confidential
      Information 

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

	
      10.2
	
      The
      party receiving Information (“Recipient”) will use the same care and
      discretion to avoid disclosure, publication or dissemination of
      Information as it uses with its own similar information that it does not
      wish to disclose, publish or disseminate. The Recipient may disclose
      Information only to: (i) its employees and employees of its parent,
      subsidiary affiliated companies or subcontractors who have a need to know
      for purposes of carrying out this Agreement; and (ii) any other party with
      the Discloser’s prior written consent. Before disclosure to any of the
      above parties, the Recipient will have a written agreement with such party
      sufficient to require that party to treat Information in accordance with
      this Agreement. 

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

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

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

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

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

	11.	Patents
      and Copyrights

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

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

Page
13

(a)
promptly notifies Airspan in writing of the claim, and 

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

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

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

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

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

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

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

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

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

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

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

 

	12.	Limitation
      of Liability 

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

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

Page
14

	13.	Concessions

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

	
      14.
	Changes
      or Substitution of Products

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

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

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

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

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

	16.	Termination;
      Survival

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

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

 

Page
15

	 	 	 

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

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

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

	 	 	 

	 	(v) 	
      the
      other Party materially fails to perform any term or condition under this
      Agreement or any of its Annexes, which failure continues for a period of
      thirty (30) days after written notice has been given to the breaching
      Party;

	 	 	 

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

	 	
       

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

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

	17.	Airspan
      Procedures, Manuals and Documentation 

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

	18.	General

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

Page
16

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

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

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

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

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

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

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

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

Page
17

Notices
to Axtel shall be sent to: 

Axtel,
S.A. de C.V.

Boulevard
Gustavo Diaz Ordaz Km. 3.33 L-1

Colonia
Unidad San Pedro 

San Pedro
Garza García 

Nuevo
León, Mexico 

Attention:
Director de Negociaciones Estratégicas 

with a
copy to the Corporate Counsel.

Notices
to Airspan shall be sent to: 

Airspan
Communications Limited 

Cambridge
House

Oxford
Road

Uxbridge

Middlesex,
England

UB8 1UN

Attention:
Vice President & Controller

with a
copy to:

Airspan
Networks Inc

777
Yamato Road, suite 105

Boca
Raton, FL 33431

USA

Attention:
Senior Vice President & Chief Financial Officer

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

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

 

	19.	Intentionally
      Left in Blank. 

 

	20.	Assignment;
      Right of First Refusal

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

Page
18

	 	
      (i)
      
	
      Airspan
      shall provide to Axtel the soliciting or offering material used in
      connection with any contemplated sale of the FWA Business (the
      “FWA
      Information”)
      at the same time any such FWA Information is provided to any third party
      potential purchaser (the “Potential
      Purchasers”),
      subject to execution by the Parties of a non-disclosure agreement in a
      form and substance reasonably satisfactory to Airspan, but no less
      restrictive on Axtel than the non-disclosure agreement executed with the
      Potential Purchasers; and provided,
      however,
      that Airspan may not offer, solicit interest in or sell the FWA Business
      to any company which is a direct competitor of Axtel or does not have the
      necessary resources (human and/or technical), at Airspan’ reasonable
      judgment, to manufacture the Products and/or to provide the technical
      support required by Axtel, including without limitation, Teléfonos de
      México, S.A. de C.V. or any of its affiliates (the “Restricted
      Companies”);

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

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

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

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

 

	21.	Airspan
      Security Instrument. 

Page
19

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

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

	
      21.3
	
      Intentionally
      Left in Blank. 

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

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

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

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

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

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

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

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

Page
20

	22.	Second
      Lines Module. 

 

	
      22.1
	
      Airspan
      hereby sells to Axtel the Second Lines Module of (i) all of the FWA RSS
      Products purchased by Axtel before the Effective Date and (ii) all of the
      FWA RSS Products that will be purchased by Axtel in the future; in
      consideration for the Second Line Module, Axtel hereby agrees to pay
      Airspan the amounts of US$[*] within five (5) days after the date of this
      Agreement, subject to the issuance of the respective Order and the
      delivery of the respective invoice. Axtel will issue the respective Order
      no later than 2 days after the Effective Date of this Agreement; and
      Airspan will issue the invoice no later than 2 days after receipt of the
      Order. 

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

	23.	Purchase
      Commitment

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

 

	23.	Titles
      and Subtitles

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

 

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

	AXTEL, S.A. DE
C.V.	 	 	AIRSPAN COMMUNICATIONS
      LIMITED
	 	 	 	 
	By:
/s/ 	 	 	By:
  /s/ 
	
      

    	 	 	
      

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

Page
21

 

Annex
B

CHANGE
ORDER PROCEDURES

ANNEX
B

 

CHANGE
ORDER PROCEDURES

 

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

 

	
      1.
	
      Change
      Order

	 	 

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

  

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

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

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

	
      2.
	
      Non-Billable
      Change Order

	 	 

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

.

	
      3.
	
      Customer
      Information

	 	 

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

 

Page
2

ANNEX
B - ATTACHMENT 1 

FORM
OF CHANGE ORDER

 

Axtel,
S.A. de C.V.

Re:
Purchase and License Agreement dated ________

Change
Order No.: _________

Circle
One:
Billable or Non-Billable

 

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

 

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

 

	3.  	
      Origin
      and Description of Changes:

[insert
narrative explaining reason for change]

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

 

	4.  	
      Resulting
      Adjustment

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

 

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

 

AXTEL,
S.A. DE C.V. 

 

By:
     

Print
Name:     

Title:
     

 

AIRSPAN
COMMUNICATIONS LIMITED   

 

By:
       

Print
Name:       

Title:
 

    

Page
3

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

 

Annex C

 

DESCRIPTION
OF PRODUCTS 

 

 

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December
2004

 

Annex
C

 

DESCRIPTION
OF PRODUCTS 

 

 

	1.	DOCUMENT
      SCOPE

 

	1.1	Document
      Scope

	 	 

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

 

	2.1.1	FWA
      Description of Equipment

 

	2.1.1.1	Intentionally
      Left in Blank 

 

	2.1.1.2	Customer
      Premise Equipment Kits.

	 	
      An F2 RSS Kit is defined as
      follows: 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG17DA
	
      F2
      RTU
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500M)
	
      0.04

	
      NTEG99GR
	
      Dual
      Jacket Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	
       
	
      An F5 RSS Kit is defined as follows (RDA KIT
      EXCLUDED): 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG18DA
	
      F5
      RTU
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 

 

Page
2

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

 

	
       
	
      An F5v2 Analog RSS Kit is defined as
      follows: 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG18DB
	
      F5v2
      Analog RTU
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 

 

	
       
	
      An F6 Single Model RSS Kit is defined as
      follows: 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG19DE
	
      F6
      RTU
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 

 

	 	An RDA Kit is defined
      as follows: 	 
	 	 	 
	
      NTEG18FA
	
      RDA
	
      1

 

	
       
	
      An F5 RSS Kit is defined as
      follows: 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG18DA
	
      F5
      RTU
	
      1

	
      NTEG18FA
	
      RDA
      Kit
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      PEC
	
      Description
	
      Qty.

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Dual
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

 

Page
3

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

 

	2.1.1.3	Installation
      Brackets for F5 & F2 RSS.

 

 

	
       
	
      Compact Mounting
      Bracket 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG19AJ
	
      Compact
      Mounting Bracket (10)
	
      1

	
      NTEG99DC
	
      Mounting
      Coach Screw (200)
	
      0.015

	
      NTEG99DD
	
      Washer
      M8 (200)
	
      0.015

	
      NTEG99DE
	
      Frame
      Fixing(200)
	
      0.015

 

	2.1.1.4	Radio
      Basestation Kits

	 	 

	 	Discrete Radio Basestation
      Configurations.

 

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

	
      PEC
	
      Description
	
      18b
      RBS
	
      27b
      RBS

	
      NTED4575
	
      Transceiver
      Processor Module
	
      5
	
      7

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      5
	
      7

	
      NTEG77EC
	
      Transceiver
      Masthead Unit Kit
	
      6
	
      9

	
      NTEG97PC
	
      Antenna
      to TMU 4m Cable
	
      6
	
      9

	
      NTEG94BD
	
      1M
      Pre-Fit Cabinet
	
      1
	
      2

	
      NTEG63AA
	
      Transceiver
      Timer Module
	
      0
	
      0

	
      NTEG73AA
	
      Network
      Management Module
	
      0
	
      0

	
      NTEG99CJ
	
      TMU
      to Cabinet IF 1⁄2 ” cable (500m)
	
      0.6
	
      0.9

	
      NTEG91BA
	
      1⁄2 ”
      IF Cable Connector Kit
	
      6
	
      9

	
      NTEG99CE
	
      TMU
      to Cabinet Power cable (500m) 
	
      0.6
	
      0.9

	
      NTEG93AA
	
      Power
      Cable Connector Kit
	
      6
	
      9

	
      NTEG99CA
	
      TMU
      to Cabinet Data Cable (500m) 
	
      0.6
	
      0.9

	
      NTEG92AA
	
      Data
      Cable Connector Kit
	
      6
	
      9

	
      PEC
	
      Description
	
      18b
      RBS
	
      27b
      RBS

	
      NTEG97MF
	
      120
      Degree Horizontal Polarization Antenna
	
      Up
      to 6
	
      Up
      to 9

	
      NTEG97ME
	
      120
      Degree Vertical Polarization Antenna
	
      Up
      to 6
	
      Up
      to 9

	
      NTEG97NF
	
      60
      Degree Horizontal Polarization Antenna
	
      Up
      to 6
	
      Up
      to 9

	
      NTEG97NE
	
      60
      Degree Vertical Polarization Antenna
	
      Up
      to 6 
	
      Up
      to 9

	
      NTEG97NG
	
      40
      Degree Vertical Polarization Antenna
	
      0
	
      0

	
      NTEG97NH
	
      40
      Degree Horizontal Polarization Antenna
	
      0
	
      0

	
      NTEG94PA
	
      120
      Ohms primary E1 cable
	
      1
	
      2

Page
4

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

 

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

18b -
6

27b -
9

48b -
18

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

	
      NTEG94BD
      1M Pre-Fit Cabinet

	
      PEC
	
      Description
	
      Qty.

	
      NTED4575
	
      Transceiver
      Processor Module
	
      1

	
      NTEG63AA
      
	
      Transceiver
      Timer Module
	
      2

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      1

	
      NTEG73AA
	
      Network
      Management Module
	
      1

	
      NTEG7662
	
      CABINET
      CABLE SET TYPE 2
	
      1

	
      NTEG74BA
	
      Over
      Voltage Protection Module
	
      3

	
      NTEG76BA
	
      ITS
      Fan Tray Assembly
	
      1

	
      NTEG76CC
	
      Secondary
      DC Breaker Rack Filtered
	
      1

	
      NTEG76FB
	
      I.T.S
      Basestation Diversity Sub Rack
	
      1

	
      NTEG76GA
	
      I.T.S
      U.K Maintenance Port Assembly
	
      1

	
      NTEG94AN
	
      1.0M
      Cabinet Floor Mounting Plinth
	
      1

	
      NTEG94FA
	
      Alarm
      Connector Block
	
      1

	
      NTEG94QA
	
      1.0M
      Internal ITS Cabinet
	
      1

	
      NTEG77EC
      Transceiver Masthead Unit Kit

	
      PEC
	
      Description
	
      Qty.

	
      NTEG77CA
	
      T.M.U./T.A.S.
      Ground Bond Kit
	
      1

	
      NTEG77DA
	
      Sun
      Shield Assembly
	
      1

	
      NTEG77GB
	
      T.M.U.
      Assemble BF Band (100MHz)
	
      1

	
      P0821020
	
      U
      Bolt 61 C R S
	
      2

	
      P0821021
	
      U
      Bolt 126 C R S
	
      2

	
      P0834843
	
      T.M.U.
      Mounting Bracket V3
	
      1

 

	2.1.1.5	Discrete
      Radio Basestation Upgrade
Configurations.

 

Page
5

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

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

	 	 	 	 
	
      PEC
	
      Description
	
      18b
      to 27b Upgrade
	
      PDS
      Upgrade to 18b ITS

	
      NTED4575
	
      Transceiver
      Processor Module
	
      2
	
      0

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      2
	
      0

	
      NTEG77EC
	
      Transceiver
      Masthead Unit Kit
	
      3
	
      0

	
      NTEG97PC
	
      Antenna
      to TMU 4m Cable
	
      3
	
      0

	
      NTEG94BD
	
      1M
      Pre-Fit Cabinet
	
      1
	
      0

	
      NTEG63AA
	
      Transceiver
      Timer Module
	
      0
	
      0

	
      NTEG73AA
	
      Network
      Management Module
	
      0
	
      0

	
      NTEG99CJ
	
      TMU
      to Cabinet IF1/2” cable (500m)
	
      0.3
	
      0

	
      NTEG91BA
	
      1/2”
      IF Cable Connector Kit
	
      3
	
      0

	
      NTEG99CE
	
      TMU
      to Cabinet Power cable (500m) 
	
      0.3
	
      0

	
      NTEG93AA
	
      Power
      Cable Connector Kit
	
      3
	
      0

	
      NTEG99CA
	
      TMU
      to Cabinet Data Cable (500m) 
	
      0.3
	
      0

	
      NTEG92AA
	
      Data
      Cable Connector Kit
	
      3
	
      0

	
      NTEG97MF
	
      120
      Degree Horizontal Polarization Antenna
	
      Up
      to 3
	
      0

	
      NTEG97ME
	
      120
      Degree Vertical Polarization Antenna
	
      Up
      to 3
	
      0

	
      NTEG97NF
	
      60
      Degree Horizontal Polarization Antenna
	
      Up
      to 3
	
      0

	
      NTEG97NE
	
      60
      Degree Vertical Polarization Antenna
	
      Up
      to 3 
	
      0

	
      NTEG97NG
	
      40
      Degree Vertical Polarization Antenna
	
      0
	
      0

	
      NTEG97NH
	
      40
      Degree Horizontal Polarization Antenna
	
      0
	
      0

	
      NTEG71HA
	
      Transceiver
      processor Module - Packet Data
	
      0
	
      2

	
      N/A
	
      Packet
      Data Software Activation Fee
	
      0
	
      1

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

18b to
27b Upgrade - 3

27b to
48b Upgrade - 12

 

Page
6

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

	2.1.1.6	FWA
      Software.

 

	
      PEC
	
      Description
	
      Qty.

	
      N/A
	
      Basestation
      Packet Data Software Activation Fee
	
      1

	 	
      RMT
      SOFTWARE LICENSE FEE
	
      1

	 	 	 

 

	2.1.1.7	FWA
      OA&M Equipment.

	 	 

	 	Field Engineering Terminal
      (FET).

 

Choose
one of the following.

	
      PEC
	
      Description
	
      Qty.

	
      NTEG30AN
	
      FET
      System Complete (LINUX)on Panasonic CF27
	
      1

	
      NTEG30AF
	
      LINUX
      FET Software Application Kit for Panasonic CF27
	
      1

 

Residential
Installation System (RIS).

 

Survey
Kit

	PEC
	Description
	
      Qty.

	 	 	 
	
      NTEG24BF
	
      100
      MHz Generic Survey Kit
	
      1

	
      NTEG10DCBV
	
      RSS
      Installation Sub-Set Documentation
	
      1

	
      P0872025
	
      Large
      Belt
	
      1

	
      NTEG24BE
	
      RTU
      SAK/Handle Pole Kit (5.5m extension kit)
	
      1

	
      NTEG22EB
	
      RTU
      SAK/Handle Assembly
	
      1

	
      A0734347
	
      GPS
	
      1

	
      A0658055
	
      Linesman
      Phone U.S.
	
      1

Maintenance
Kit

	
      PEC
	
      Description
	
      Qty.

	
      NTEG24AA
	
      100MHz
      Generic Maintenance Kit
	
      1

	
      NTEG21ND
	
      PSA
      Mains Adapter U.S.
	
      1

	
      A0745625
	
      RMT
      Mains Adapter U.S.
	
      1

	
      A0657248
	
      Modem
	
      1

	
      A0655833
	
      Multimeter
	
      1

	
      NTEG21PB
	
      Vehicle
      charging Cable
	
      1

	
      A0743766
	
      RMT
      Docking Holster
	
      1

Page
7

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

	
       
	
      Radio Element Manager
      (REM). 
	 
	 	
      The following configurations are representative of
      a typical installation. Specific installations may require variations on
      these definitions. 
	 
	 	 	 
	
      PEC
	
      Description
	
      Qty.

	
      NTEG43AC
	
      HP
      Unix Server
	
      1

	
      NTEG41GD
	
      REM
      Redundancy Upgrade Kit with Online Backup
	
      1

	
      NTEG41EG
	
      REM
      Processor Upgrade Kit
	
      1

	
      A0784688
	
      HP
      3.5” hot swappable drive for HP D-CAL
	
      1

	
      NTEG43AA
	
      HP
      Client Workstation
	
      1

	
      NTEJ40BK
	
      Radio
      Element Manager Software Platform 4.4.2
	
      1

	
      NTEG42CB
	
      Snmp
      Ethernet Network Mgt. Card Type 2
	
      1

	
      NTEG42BC
	
      Network
      Hub 16 Slot Chassis,Fantray, Hipernmc & Dual Psu
	
      1

	
      NTEG42FB
	
      60
      Channel Netserver Ethernet L A N Card
	
      1

	
      NTEG42GM
	
      Quad
      Modem Card With S/Ware Type 1
	
      1

	
      NTEG43AD
	
      Unix
      Server annual support
	
      1

	
      NTEG43AB
	
      Client
      Workstation annual support
	
      1

	
      NTEJ40GC
	
      Remedy
      ARS Support
	
      1

	
      NTEJ40JC
	
      Oracle
      RDBMS Support
	
      1

	
      A0743702
	
      Openview
      SW Support
	
      1

	
      NTEG42KA
	
      Network
      Hub Annual SW Maintenance
	
      1

	
      A0743715
	
      SW
      support CLEO 
	
      1

	
      A0740374
	
      Power
      cord grounded North America
	
      0

	
      NTEJ40AE
	
      REM
      Exceed SW
	
      1

	
      NTEG41HB
	
      10
      BASE-T SWITCHING HUB-24R
	
      1

 

	2.1.1.8	FWA
      Equipment Spares.

 

	
      PEC
	
      Description
	
      Qty.
      Per

	
      NTED4575
	
      Transceiver
      Processor Module
	
      1

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      1

	
      NTEG77EC
	
      Transceiver
      Masthead Unit Kit
	
      1

	
      NTEG97PC
	
      Antenna
      to TMU 4m Cable
	
      1

	
      NTEG76BA
	
      ITS
      Fan Tray Assembly
	
      1

	
      NTEG76CC
	
      Secondary
      DC Breaker Rack Filtered
	
      1

	
      NTEG76FB
	
      I.T.S
      Basestation Diversity Sub Rack
	
      1

	
      NTEG76GA
	
      I.T.S
      U.K Maintenance Port Assembly
	
      1

	
      NTEG94QA
	
      1.0M
      Internal ITS Cabinet
	
      1

	
      NTEG74BA
	
      Over
      Voltage Protection Module
	
      3

	
      NTEG63AA
	
      Transceiver
      Timer Module
	
      1

	
      NTEG73AA
	
      Network
      Management Module
	
      1

	
      NTEG99CJ
	
      TMU
      to Cabinet IF 1⁄2”Cable
	
      500m

	
      NTEG91BA
	
      1⁄2”
      IF Cable Connector Kit
	
      1

	
      NTEG99CE
	
      TMU
      to Cabinet Power Cable 
	
      500m

	
      NTEG93AA
	
      Power
      Cable Connector Kit
	
      1

	
      NTEG99CA
	
      TMU
      to Cabinet Data Cable 
	
      500m

	
      NTEG92AA
	
      Data
      Cable Connector Kit
	
      1

	
      NTEG97ME
	
      120
      Degree Vertical Polarization Antenna
	
      1

Page
8

Annex C -
Description of Products 

Purchase
and License Agreement for FWA Equipment-December 2004

	
      PEC
	
      Description
	
      Qty.
      Per

	
      NTEG97MF
	
      120
      Degree Horizontal Polarization Antenna
	
      1

	
      NTEG97NE
	
      60
      Degree Vertical Polarization Antenna
	
      1

	
      NTEG97NF
	
      60
      Degree Horizontal Polarization Antenna
	
      1

	
      NTEG97NG
	
      40
      Degree Vertical Polarization Antenna
	
      1

	
      NTEG97NH
	
      40
      Degree Horizontal Polarization Antenna
	
      1

	
      NTEG71HA
	
      Transceiver
      Processor Module - Packet Data
	
      1

	
      NTEG18DA
	
      F5
      RTU
	
      1

	
      NTEG18FA
	
      RDA
      Kit
	
      1

	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Dual
      Jacket Drop Cable
	
      500m

	
      NTEG99GR
	
      Dual
      Jacket Drop Cable Connector
	
      50

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins
	
      500

	
      NTEG17DA
	
      F2
      RTU
	
      1

	
      NTEG19DE
	
      F6
      RTU
	
      1

	
      NTEG18DB
	
      F5v2
      RTU
	
      1

Page
9

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

 

Annex
D

Product
Specifications

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December
2004

Annex
D

Product
Specifications

PLA
FWA Contract

 

	1.	Scope

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

	2.1	General
      description

	2.1.1	Intentionally
      Left in Blank 

	2.1.1.1	Purpose
      of Internet FWA

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

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

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

	2.1.2	Sub-systems

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

	·  	
      Remote
      Service System (RSS)

	·  	
      Radio
      Base Station (RBS)

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

	·  	
      Radio
      Element Manager (REM)

	·  	
      RSS
      Installation System (RIS)

	·  	
      Field
      Engineering Terminal (FET)

Page
2

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

The
Remote Service System (RSS)

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

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

The
Integrated Transceiver System (ITS)

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

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

In
principle, an ITS can be provisioned as a 3, 6, 9, 12, 15 or 18 bearer
configuration. RBS configurations specifically supported by installation and
maintenance processes provide tri-sectored configurations with 18 or
271  In
the Axtel application, the 27 bearer base-stations generally provide only 26
bearers due to limited availability of RF channels. RF
carriers, or a tri/hex-sectored RBS with 48 RF carriers. The 27-carrier
configurations require the use of two ITSs, and the 48-carrier configuration
requires the use of three ITSs. The 48 bearer base-station is designed to
provide coverage in two ‘RF layers’, the first layer allowing a frequency re-use
of one to be employed whilst a more conservative frequency plan is used in the
other layer. Service to the individual RSS can be switched between these two
layers depending on the interference environment experienced at that
RSS.

Radio
Element Manager (REM)

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

	 	 	 	 

 

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

 

Page
3

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

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

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

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

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

Field
engineering terminal (FET)

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

RSS
Installation system (RIS)

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

	2.1.3	External
      interfaces

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

	·  	
      Analogue
      line interface at the RSS

	·  	
      Packet
      data interface at the RSS

	·  	
      A.C.
      power interface at the RSS

	·  	
      PCM
      (E1) interface at the RBS

	·  	
      Packet
      data (E1) interface at the RBS

	·  	
      D.C.
      power interface at the RBS

	·  	
      External
      alarm interface at the RBS

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

	·  	
      Analogue
      line interface at the REM

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

	2.2	Physical
      characteristics

Page
4

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

	2.2.1	RSS
      transceiver unit (RTU)

	2.2.1.1	Mechanical

Length/width:
300 mm (octagonal, measured between flat faces)

Depth: 90
mm excluding mounting brackets

Mass: 2.5
kg.

	2.2.1.2	Environmental

Ambient
temperature: -40 C to +50 C

Solar
radiation: £ 1120
W/m2

Relative
humidity: 5% to 100%

	2.2.2	RSS
      power and connection unit (RPCU)

	2.2.2.1	Mechanical

Length:
210 mm

Width:
135 mm

Depth: 41
mm

Mass: 2.0
kg including battery

	2.2.2.2	Electrical

Input
voltage: 85 V to 270 V RMS

Input
frequency: 45 Hz to 70 Hz

	2.2.2.3	Environmental

Ambient
temperature: -5 C to +45 C

Relative
humidity 5% to 100%

	2.2.3	RSS
      data adaptor (RDA)

	2.2.3.1	Mechanical

Length:
165 mm

Width:
125 mm

Depth: 28
mm 

Mass: 250
g

	2.2.3.2	Environmental

Ambient
temperature: -5C to +45C

Relative
humidity: 5% to 100%

	2.2.4	Integrated
      transceiver system (ITS) indoor
equipment

	2.2.4.1	Mechanical

Width:
600mm

Height
and depth (1 metre cabinet): 1000 mm × 300 mm

	2.2.4.2	Environmental

Page
5

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

Ambient
temperature: 0 C to +45 C

Solar
radiation: £ 700
W/m2

Relative
humidity: 5% to 95%

	2.2.5	Integrated
      transceiver system (ITS) masthead
equipment

	2.2.5.1	Mechanical
      (TMU)

Height:
600 mm

Width:
450 mm

Depth:
200 mm

Mass:
£ 30
kg

	2.2.5.2	Environmental

Ambient
temperature: -40 C to +50 C

Solar
radiation: £ 1120
W/m2

Relative
humidity: 5% to 100%

	2.3	Radio
      system

	2.3.1	General
      description of the air interface

	2.3.1.1	Physical
      layer

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

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

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

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

	2.3.1.2	Channel
      plan

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

	2.3.1.3	MAC
      layer for PSTN traffic

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

Page
6

Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

	2.3.1.4	MAC
      layer for the Packet data service

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

	2.3.2	RF
      performance of the ITS equipment

	2.3.2.1	Maximum
      transmit power

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

	2.3.2.2	Transmitter
      implementation loss

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

	2.3.2.3	Spectrum
      due to modulation

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

	
       

      Channel

       
	
       

      Mean
      power (dBc)

       

	
      N
	
      0
      dBc (by definition)

	
      N
      ±
      1
	
      £
      -24.5 dBc

	
      N
      ±
      2
	
      £
      -40 dBc

	
      N
      ±
      3
	
      £
      -50 dBc

	
      Any
      other channel
	
      £
      -60 dBc or -60 dBm (whichever is greater)

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

	2.3.2.4	Minimum
      receiver sensitivity

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

	2.3.2.5	Receiver
      selectivity

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

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      Channel

       
	
       

      Carrier/Interference
      ratio for BER = 10-3

       

	
      N
	
      £
      14.4 dB

	
      N
      ±
      1
	
      £
      -15.5 dB

	
      N
      ±
      2
	
      £
      -58.5 dB

	
      Any
      other channel
	
      £
      -84.5 dBc

	2.3.3	RF
      performance of the RSS equipment

	2.3.3.1	Maximum
      transmit power

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

	2.3.3.2	Transmitter
      implementation loss

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

	2.3.3.3	Spectrum
      due to modulation

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

	
       

      Channel

       
	
       

      Mean
      power (dBc)

       

	
      N
	
      [*]

	
      N
      ±
      1
	
      [*]

	
      N
      ±
      2
	
      [*]

	
      N
      ±
      3
	
      [*]

	
      Any
      other channel
	
      [*]

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

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	2.3.3.4	Minimum
      receiver sensitivity

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

	2.3.3.5	Receiver
      selectivity

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

	
       

      Channel

       
	
       

      Carrier/Interference
      ratio for BER = 10-3

       

	
      N
	
      [*]

	
      N
      ±
      1
	
      [*]

	
      N
      ±
      2
	
      [*]

	
      N
      ±
      3
	
      [*]

	
      N
      ±
      4
	
      [*]

	
      N
      ±
      5
	
      [*]

	
      Any
      other channel
	
      Blocking
      specification applies

2.3.3.6  RSS
receiver dynamic range

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

2.3.3.7  RSS
antenna gain

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

	2.3.4	Automatic
      power control

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

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

	2.3.5	Combining
      diversity

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

The TMU
receiver is wideband and covers all of the uplink spectrum. This means that the
IF signals from 2 TMUs in the same sector differ only by virtue of being
received from 2 physically separated antennas. The two I.F signals are fed to
separate arms of each receiver pair of every TBM in the sector. The TBM hosts
three such receiver pairs where each pair is configured to an appropriate
channel. The maximum ratio combining algorithm is executed independently on each
receiver pair.

	2.3.6	Dynamic
      carrier list management

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

	2.4	Equipment
      configurations

	2.4.1	RBS
      configurations

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

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      Base
      station configuration

       
	
       

      ITS
      sector organisation

       
	
       

      Circuit-switched
      E1s

       
	
       

      Packet-switched
      E1s

       
	
       

      Maximum
      number of E1 connections

       

	
      18-carrier,
      tri-sector, Type I
	
      6.6.6
	
      6
	
      0,
      2
	
      8

	
      26-carrier,
      tri-sector, Type II
	
      6.6.5
	
      6
	
      0,
      2
	
      11

	
      3.3.3
	
      3
	
      0

	
      26-carrier,
      tri-sector, Type III
	
      9.8
	
      6
	
      0,
      2
	
      13

	
      9
	
      3
	
      0,
      2

	
      26-carrier,
      tri-sector, Type IV
	
      9.9
	
      6
	
      0,
      2
	
      13

	
      8
	
      3
	
      0,
      2

	
      27-carrier,
      tri-sector, Type I
	
      6.6.6
	
      6
	
      0,
      2
	
      11

	
      3.3.3
	
      3
	
      0

	
      27-carrier,
      tri-sector, Type II
	
      9.9
	
      6
	
      0,
      2
	
      13

	
      9
	
      3
	
      0,
      2

	
      48-carrier,
      tri/hex-sector
	
      6.6.4
	
      5
	
      0,
      2
	
      21

	
      6.6.4
	
      5
	
      0,
      2

	
      6.6.4
	
      5
	
      0,
      2

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

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

The
following rules apply:

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

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

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

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

	2.4.2	PSTN
      traffic capacity

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

	
       

      Base
      station configuration

       
	
       

      Reference
      capacity (E)

       

	
       

      Soft
      sector = 0%

       
	
       

      Soft
      sector = 10%

       

	
      18-carrier,
      tri-sector, Type I
	
      [*]
	
      [*]

	
      26-carrier,
      tri-sector, Type III & IV
	
      [*]
	
      [*]

	
      27-carrier,
      tri-sector, Type II
	
      [*]
	
      [*]

	
      48-carrier,
      tri/hex-sector
	
      [*]
	
      [*]

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

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

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

	2.4.3	Packet
      data traffic capacity

	2.4.3.1	Number
      of packet channels at an ITS

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

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

	·  	
      All
      packet channels consist of 6 physical channel
pairs

	·  	
      An
      ITS that supports PDS has two TPM-PDs

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

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

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

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

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

	2.4.3.2	Number
      of simultaneous PPP and MAC connections

The
packet data service supports a maximum of:

	·  	
      700
      packet data subscribers per ITS

	·  	
      [*]
      simultaneous PPP connections per ITS

	·  	
      [*]
      simultaneous active MAC connections per packet
channel

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

	·  	
      [*]
      simultaneous active MAC connections per ITS

	2.4.3.3	Traffic
      capacity of a packet channel

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

	2.4.3.4	Peak
      throughput for a single PDS user

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

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

	2.4.3.5	Reduction
      in PSTN capacity

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

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      Base
      station configuration

       
	
       

      Reference
      capacity (E)

       

	
       

      One
      packet channel in each sector

       
	
       

      Two
      packet channels in each sector

       

	
      26-carrier,
      tri-sector, Type III & IV
	
      194.0
	
      178.0

	
      48-carrier,
      tri/hex-sector
	
      327.0
	
      279.0

	2.5	External
      interfaces

	2.5.1	ITS
      to transmission system

The
interface between the ITS and the transmission system is defined by
ITU-T

G.703
11/2001, ‘Physical/electrical characteristics of hierarchical digital
interfaces’. Only the interface at 2048 kbit/s is supported in Internet
FWA.

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

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

	2.5.2	ITS
      to local exchange

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

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

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

	2.5.3	ITS
      to packet data network

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

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

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-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

	·  	
      PPP:
      Internet engineering task force (IETF) STD 51, ‘The point to point
      protocol’

	·  	
      IP:
      IETF RFC 791, ‘Internet protocol’

	·  	
      UDP:
      IETF RFC 768, ‘User datagram protocol’

	·  	
      L2TP:
      IETF RFC 2661, ‘Layer two tunnelling protocol
(L2TP)’

	2.5.4	RDA
      to PC

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

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

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

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

	2.6.	Additional
      Specifications

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

 

	2.6.2	New
      RSS Unit

 

Summary
of the RSS changes

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

The
changes are summarised as follows:

 

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

 

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

 

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

 

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

 

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Annex D
-Product Specifications 

Purchase
and License Agreement for FWA Equipment-December 2004

 

Single
variant RSS

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

 

48
volt indoor power supply

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

 

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

 

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

 

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

 

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

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

 

Change
to RTU lower operating temperature limit

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

 

Single
outer sheath drop cable

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

 

F6
support in SR14.2

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

 

Others

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

Page
16

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

 

Annex
E

 

FWA
Order Procedure

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec
2004)

ORDER
PROCEDURE

1
Purchase Order Procedure 

 

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

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

1.1
Request for Quotation 

 

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

	a)  	
      Supplier
      Part or Service Number if available 

	b)  	
      Manufacturer
      Part Number if different to supplier 

	c)  	
      Part
      or Service Description

	d)  	
      Quantity

	e)  	
      Unit
      of Measure

	f)  	
      Requested
      Deliver Time or Date

	g)  	
      Delivery
      Location when applicable

	h)  	
      Part
      Number (Serial Profile applicable)

 

1.2
Delivery of quotation by Supplier

 

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

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

	a)  	
      Supplier
      Quotation Number

	b)  	
      Supplier
      Part or Service Number

	c)  	
      Manufacturer
      Part Number if different to Supplier’s 

	d)  	
      Part
      or Service Description

	e)  	
      Quantities

	f)  	
      Unit
      of Measure

	g)  	
      Part
      Number (Serial Profile applicable)

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

	i)  	
      Extended
      Price 

	j)  	
      Warranty
      Terms and Conditions if applicable

	k)  	
      Payment
      Terms

	l)  	
      Expiration
      Date

	m)  	
      Delivery
      Time per Item

	n)  	
      Delivery
      Site or Delivery Location when applicable

	o)  	
      Agreement
      Name

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2

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

1.3
Submission of Purchase Orders - General

 

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

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

	a)  	
      Purchase
      Order Number

	b)  	
      Purchase
      Order Date

	c)  	
      Supplier
      Quotation Number if applicable

	d)  	
      Requested
      Delivery Date per each item

	e)  	
      Axtel
      Part Number

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

	g)  	
      Manufacturer
      Part Number if different to Supplier when applicable

	h)  	
      Part
      or Service Description

	i)  	
      Quantities
      per each item

	j)  	
      Unit
      of Measure

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

	l)  	
      Extended
      Price 

	m)  	
      Billing
      Instructions

	n)  	
      Payment
      Terms as per signed Agreement

	o)  	
      Shipping
      Instructions and Delivery Location 

	p)  	
      Agreement
      Name

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

	r)  	
      Wording
      referencing Terms and Conditions to Agreement
signed

	s)  	
      Special
      wording when applicable 

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

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

Page
3

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

1.4
Address and Times for Submission of Purchase Orders 

 

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

Guy
Insley

Airspan
Networks Inc

777
Yamato Road,

Suite
105

Boca
Raton

Fl,
33431

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

2
FWA Product Delivery Times 

 

Product
Delivery times are indicated in Annex J .

 

2.1
Product Delivery 

 

Within
three business days after Final Ship Date: 

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

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

3
Intentionally
left in blank 

 

4
Invoicing 

 

4.1
Product Invoicing

 

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

Page
4

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

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

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

4.2
Services Invoicing

 

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

4.3
Invoicing General

 

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

	a)  	
      Official
      name and address of Axtel as follows:

Axtel
S.A. de C.V.

Blvd.
Diaz Ordaz Km. 3.33 L-1

Col .
Unidad San Pedro San Pedro Garza García, N.L.

México
66215

RFC:
AXT-940727-FP8

	b)  	
      Purchase
      Order Number (s)

	c)  	
      Invoice
      Number

	d)  	
      Invoice
      date

	e)  	
      Supplier
      Quotation Number if applicable

	f)  	
      Supplier
      Part or Service Number if applicable

	g)  	
      Axtel
      part Number.

	h)  	
      Manufacturer
      Part Number if different to Supplier when applicable

	i)  	
      Part
      or Service Description

	j)  	
      Quantities
      per each item

	k)  	
      Unit
      of Measure

	l)  	
      Unit
      Price for Equipment or Services. 

	m)  	
      Extended
      Price for Equipment or Services. 

	n)  	
      Payment
      Terms 

	o)  	
      Delivery
      Location for Services when applicable

	p)  	
      Agreement
      Name

	q)  	
      Supplier
      Name and Address

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

5
Equipment Shipping Instructions, Shipping Documents
and Goods Receipt.

 

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

Page
5

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

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

	·  	
      Proof
      of Delivery 

	·  	
      Packing
      List.

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

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

	·  	
      Copy
      of Original Invoice 

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

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

	·  	
      Copy
      of Original Invoice 

	·  	
      Packing
      List with product serial number when
applicable

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

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

	·  	
      Document
      Date

	·  	
      Purchase
      Order Number (s)

	·  	
      Invoice
      Number(s)

	·  	
      Delivery
      Date

	·  	
      Acceptance
      Note and Goods Receipt Number 

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

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

 

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

 

6
Services Acceptance 

 

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

 

Page
6

Annex
E

Purchase
and License Agreement for FWA Equipment (Dec 2004)

	 	 

	·  	
      Document
      Date

	·  	
      Purchase
      Order Number

	·  	
      Date
      of Service Completion

	·  	
      Acceptance
      Note and Service Receipt Acceptance Number 

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

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

 

Page
7

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December
2004)

Annex
F

 

FWA
Prices 

 

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December
2004)

Annex
F

FWA
Prices

 

1.0 Document
Scope.

 

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

 

2.0  
Customer
Premise Equipment Kits.

 

2.1 Customer
Premise Equipment Kits (CPE).

 

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

	
      PEC
	
      Description
	
      Qty.
	
      Ext.
      Price CIP USD

	
      NTEG18DA
	
      F5
      RTU
	
      1
	 
	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 	
      [*]

 

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

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

	
      PEC
	
      Description
	
      Qty.
	
      Ext.
      Price CIP USD

	
      NTEG18DB
	
      F5v2
      Analog RTU
	
      1
	 
	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 	
      [*]

 

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

Page
2

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

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

	
      PEC
	
      Description
	
      Qty.
	
      Ext.
      Price CIP USD

	
      NTEG19DE
	
      F6
      RTU
	
      1
	 
	
      NTEG12FA
	
      RPCU
	
      1

	
      A0636762
	
      RPCU
      Battery
	
      1

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1

	
      NTEG99JE
	
      Drop
      Cable (500m)
	
      0.04

	
      NTEG99GR
	
      Drop
      Cable Connector (50)
	
      0.02

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins (500)
	
      0.02

	 	
      $
      [*]

 

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

	
      PEC
	
      Description
	
      Qty.
	
      Ext.
      Price CIP USD

	
      NTEG18FA
	
      RDA
      or Dongle
	
      1
	 
	 	 	 	 
	 	 	 	 
	 	
      Right
      to use fee of PD functionality included
	 	 
	 	
      $
      [*]

2.2 Installation
Brackets for any type of RSS.

 

Compact
Mounting Bracket

	
      PEC
	
      Description
	
      Qty.
	
      Ext.
      Price CIP USD

	
      NTEG19AJ
	
      Compact
      Mounting Bracket (10)
	
      1
	 
	
      NTEG99DC
	
      Mounting
      Coach Screw (200)
	
      0.015
	 
	
      NTEG99DD
	
      Washer
      M8 (200)
	
      0.015
	 
	
      NTEG99DE
	
      Frame
      Fixing(200)
	
      0.015
	 
	 	 	 	
      $[*]

 

Page
3

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

 

3.0 Radio
Basestation Kits

 

Discrete
Radio Basestation Configurations.

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

	
      PEC
	
      Description
	
      18b
      RBS
	
      27b
      RBS

	
      NTED4575
	
      Transceiver
      Processor Module
	
      5
	
      7

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      5
	
      7

	
      NTEG77EC
	
      Transceiver
      Masthead Unit Kit
	
      6
	
      9

	
      NTEG97PC
	
      Antenna
      to TMU 4m Cable
	
      6
	
      9

	
      NTEG94BD
	
      1M
      Pre-Fit Cabinet
	
      1
	
      2

	
      NTEG63AA
	
      Transceiver
      Timer Module
	
      0
	
      0

	
      NTEG73AA
	
      Network
      Management Module
	
      0
	
      0

	
      NTEG99CJ
	
      TMU
      to Cabinet IF 1/2” cable (500m)
	
      0.6
	
      0.9

	
      NTEG91BA
	
      1/2”
      IF Cable Connector Kit
	
      6
	
      9

	
      NTEG99CE
	
      TMU
      to Cabinet Power cable (500m) 
	
      0.6
	
      0.9

	
      NTEG93AA
	
      Power
      Cable Connector Kit
	
      6
	
      9

	
      NTEG99CA
	
      TMU
      to Cabinet Data Cable (500m) 
	
      0.6
	
      0.9

	
      NTEG92AA
	
      Data
      Cable Connector Kit
	
      6
	
      9

	
      NTEG97NE
	
      60
      Degree Vertical Polarization Antenna
	
      0
	
      0

	
      NTEG97ME
	
      120
      Degree Vertical Polarization Antenna
	
      6
	
      9

	
      NTEG94PA
	
      120
      0hms primary E1 Cable
	
      1
	
      2

	
      Ex-Works
      Price USD
	
      $[*]
	
      $[*]

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

	
      NTEG94BD
      1M Pre-Fit Cabinet

	
      PEC
	
      Description
	
      Qty.

	
      NTED4575
	
      TRANSCEIVER
      PROCESSOR MODULE 
	
      1

	
      NTEG63AA
      
	
      TRANSCEIVER
      TIMER MODULE
	
      2

	
      NTEG72AD
	
      TRANSCEIVER
      BASEBAND MODULE COMBINING DIVERSITY
	
      1

	
      NTEG73AA
	
      NETWORK
      MANAGEMENT MODULE
	
      1

	
      NTEG7762
	
      CABINET
      CABLE SET TYPE 2
	
      1

	
      NTEG74BA
	
      OVER-VOLTAGE
      PROTECTION MODULE
	
      3

	
      NTEG76BA
	
      ITS
      FAN TRAY ASSEMBLY
	
      1

	
      NTEG76CC
	
      SECONDARY
      DC BREAKER RACK FILTERED
	
      1

	
      NTEG76FB
	
      I.T.S
      Basestation DIVERSITY SUB RACK
	
      1

	
      NTEG76GA
	
      I.T.S
      U.K MAINTENANCE PORT ASSEMBLY
	
      1

	
      NTEG94AN
	
      1.0M
      CABINET FLOOR MOUNTING PLINTH
	
      1

	
      NTEG94FA
	
      ALARM
      CONNECTOR BLOCK
	
      1

	
      NTEG94QA
	
      1.0M
      INTERNAL I.T.S. CABINET
	
      1

	
      NTEG77EC
      Transceiver Masthead Unit Kit

	
      PEC
	
      Description
	
      Qty.

	
      NTEG77CA
	
      T.M.U./T.A.S.
      GROUND BOND KIT
	
      1

	
      NTEG77DA
	
      SUN
      SHIELD ASSEMBLY
	
      1

	
      NTEG77GB
	
      T.M.U.
      ASSY BF-BAND (100MHz)
	
      1

	
      P0821020
	
      U
      BOLT 61 C R S
	
      2

	
      P0821021
	
      U
      BOLT 126 C R S
	
      2

	
      P0834843
	
      T.M.U.
      MOUNTING BRACKET V3
	
      1

 

Page
4

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

3.1 PDS
Upgrade Configurations.

 

The
following configurations and the associated pricing are representative

	
      PEC
	
      Description
	
      PDS
      Upgrade 

	
      NTEG71HA
	
      Transceiver
      processor Module - Packet Data
	
      2

	
      N/A
	
      Packet
      Data Software Activation Fee
	
      1

	
      Ex-Works
      Price USD
	
      $[*]

 

4.0 FWA
Software

 

	
      PEC
	
      Description
	
      Qty.
	
      Ex-Works
      Price USD

	
      N/A
	
      RMT
      Data Software Activation Fee
	
      1
	
      To
      be Quoted 

 

5.0 FWA
OA&M Equipment.

 

5.1 Field
Engineering Terminal (FET).

 

Choose
one of the following.

	
      PEC
	
      Description
	
      Qty.
	
      Ex-Works
      Price USD

	
      NTEG30AN
	
      FET
      System Complete (LINUX)on Panasonic CF27
	
      1
	
      $[*]

	
      NTEG30AF
	
      LINUX
      FET Software Application Kit for Panasonic CF27
	
      1
	
      $[*]

5.2 Residential
Installation System (RIS).

 

Survey
& Maintenance Kit

	
      PEC
	
      Description
	
      Qty.

	
      NTEG24BF
	
      100
      MHz Generic Survey Kit
	
      1

	
      NTEG10DCBV
	
      RSS
      Installation Sub-Set Documentation
	
      1

	
      P0872025
	
      Large
      Belt
	
      1

	
      NTEG24BE
	
      RTU
      SAK/Handle Pole Kit (5.5m extension kit)
	
      1

	
      NTEG22EB
	
      RTU
      SAK/Handle Assembly
	
      1

	
      A0734347
	
      GPS
	
      1

	
      A0658055
	
      Linesman
      Phone U.S.
	
      1

	
      NTEG24AA
	
      100MHz
      Generic Maintenance Kit
	
      1

	
      NTEG21ND
	
      PSA
      Mains Adapter U.S.
	
      1

	
      A0745625
	
      RMT
      Mains Adapter U.S.
	
      1

	
      A0657248
	
      Modem
	
      1

	
      A0655833
	
      Multimeter
	
      1

	
      NTEG21PB
	
      Vehicle
      charging Cable
	
      1

	
      A0743766
	
      RMT
      Docking Holster
	
      1

	
      CIP

      Price
      USD
	 	
      $[*]

 

Page
5

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

 

5.3 Radio
Element Manager (REM).

 

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

	 	
      Description
	
      Qty.

	
      NTEG43AC
	
      HP
      Unix Server 
	
      1

	
      NTEG41GD
	
      HASS
      Functionality
	
      1

	
      NTEG41GE
	
      Dual
      Processor Functionality
	
      1

	
      NTEG43AA
	
      HP
      Client Workstation
	
      1

	
      NTEJ40BN
	
      Radio
      Element Manager Software Platform 
	
      1

	
      NTEG42BC
	
      Network
      Hub 16 Slot Chassis,Fantray,Hipernmc, Dual Psu
	
      1

	
      NTEG42FB
	
      HyperARC
	
      1

	
      NTEG42GM
	
      Quad
      Modem Card With S/Ware Type 1
	
      1

	
      NTEG43AD
	
      Unix
      Server annual support
	
      1

	
      NTEG43AB
	
      Client
      Workstation annual support
	
      1

	
      NTEJ40GC
	
      Remedy
      ARS Support
	
      1

	
      NTEJ40JC
	
      Oracle
      RDBMS Support
	
      1

	
      A0743702
	
      Openview
      SW Support
	
      1

	
      NTEG42KA
	
      Network
      Hub Annual SW Maintenance
	
      1

	
      A0743715
	
      SW
      support CLEO 
	
      1

	
      Ex-Works
      Price USD
	 	
      $[*]

 

6.0 FWA
Equipment Spares.

	
      PEC
	
      Description
	
      Qty.
      Per
	
      Ex-Works
      Price USD

	
      NTED4575
	
      Transceiver
      Processor Module
	
      1
	
      [*]

	
      NTEG72AD
	
      Transceiver
      Baseband Module Combining Diversity
	
      1
	
      [*]

	
      NTEG77EC
	
      Transceiver
      Masthead Unit Kit
	
      1
	
      [*]

	
      NTEG97PC
	
      Antenna
      to TMU 4m Cable
	
      1
	
      [*]

	
      NTEG76BA
	
      I.T.S.
      Fan Tray Assembly
	
      1
	
      [*]

	
      NTEG76CC
	
      Secondary
      DC Breaker Rack Filtered
	
      1
	
      [*]

	
      NTEG76FB
	
      I.T.S
      Basestation Diversity Sub Rack
	
      1
	
      [*]

	
      NTEG76GA
	
      I.T.S
      U.K. Maintenance Port Assembly
	
      1
	
      [*]

	
      NTEG94QA
	
      1.0M
      Internal ITS Cabinet
	
      1
	
      [*]

	
      NTEG74BA
	
      Over
      Voltage Protection Module
	
      1
	
      [*]

	
      NTEG63AA
	
      Transceiver
      Timer Module
	
      1
	
      [*]

	
      NTEG73AA
	
      Network
      Management Module
	
      1
	
      [*]

	
      NTEG99CJ
	
      TMU
      to Cabinet IF 1⁄2” Cable
	
      500m
	
      [*]

	
      NTEG91BA
	
      1⁄2”
      IF Cable Connector Kit
	
      1
	
      [*]

	
      NTEG99CE
	
      TMU
      to Cabinet Power Cable 
	
      500m
	
      [*]

	
      NTEG93AA
	
      Power
      Cable Connector Kit
	
      1
	
      [*]

	
      NTEG99CA
	
      TMU
      to Cabinet Data Cable 
	
      500m
	
      [*]

	
      NTEG92AA
	
      Data
      Cable Connector Kit
	
      1
	
      [*]

	
      NTEG97ME
	
      120
      Degree Vertical Polarization Antenna
	
      1
	
      [*]

	
      NTEG97MF
	
      120
      Degree Horizontal Polarization Antenna
	
      1
	
      [*]

	
      NTEG97NE
	
      60
      Degree Vertical Polarization Antenna
	
      1
	
      [*]

	
      NTEG97NF
	
      60
      Degree Horizontal Polarization Antenna
	
      1
	
      [*]

	
      NTEG97NG
	
      40
      Degree Vertical Polarization Antenna (For orders of less than 120
      units)
	
      1
	
      [*]

	
      NTEG97NH
	
      40
      Degree Horizontal Polarization Antenna (For orders of less than 120
      units)
	
      1
	
      [*]

	
      NTEG97NG
	
      40
      Degree Vertical Polarization Antenna (For orders of more than 120
      units)
	
      1
	
      [*]

	
      NTEG97NH
	
      40
      Degree Horizontal Polarization Antenna (For orders of more than 120
      units)
	
      1
	
      [*]

	
      NTEG71HA
	
      Transceiver
      Processor Module - Packet Data
	
      1
	
      [*]

Page
6

Annex F -
Prices

Purchase
and License Agreement for FWA Equipment (December 2004)

	
      PEC
	
      Description
	
      Qty.
      Per
	
      Ext.
      Price CIP USD

	
      NTEG18DA
	
      F5
      RTU
	
      1
	
      [*]

	
      NTEG19DE
	
      F6
      RTU
	
      1
	
      [*]

	
      NTEG18FA
	
      RDA
      Kit or Dongle
	
      1
	
      [*]

	
      NTEG12FA
	
      RPCU
	
      1
	
      [*]

	
      A0636762
	
      RPCU
      Battery
	
      1
	
      [*]

	
      NTEG12CL
	
      RPCU
      Power Cord
	
      1
	
      [*]

	
      NTEG12FB
	
      RPCU
      Safety Booklet
	
      1
	
      [*]

	
      NTEG99JE
	
      Dual
      Jacket Drop Cable
	
      500m
	
      [*]

	
      PEC
	
      Description
	
      Qty.
      Per
	
      Ext.
      Price CIP USD

	
      NTEG99GY
	
      Dual
      Jacket Drop Cable Connector
	
      50
	
      [*]

	
      NTEG99CZ
	
      Drop
      Cable Connector Pins
	
      500
	
      [*]

	
      NTEG17DA
	
      F2
      RTU or Substitute
	
      1
	
      [*]

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

Page
7

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

ANNEX
G 

WARRANTY
TERMS AND SERVICES

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December
2004)

PURCHASE
AND LICENSE AGREEMENT FOR FWA EQUIPMENT

ANNEX
G 

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

PART
ONE - WARRANTY TERMS

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

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

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

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

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

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

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Purchase
and License Agreement for FWA Equipment (December 2004)

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

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

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

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

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

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Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December
2004)

PURCHASE
AND LICENSE AGREEMENT FOR FWA EQUIPMENT

ANNEX
G

PART
TWO - WARRANTY SERVICES

	1.0  	
      SERVICES
      SUMMARY

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

 

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

 

 

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

 

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

 

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

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

		1.1	Technical
      Assistance Service during Warranty
Period

 

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

 

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

	·  	
      Where
      telephone support, remote diagnosis, and all other means of restoring
      product operation have failed, Airspan will, upon Axtel’s request, and if
      Airspan determines that on-site support is necessary and appropriate, at
      Airspan’s expense, dispatch a trained and qualified technical expert to
      Axtel’s premises to facilitate further
diagnosis.

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

		1.1.2	Axtel
      Responsibilities for receipt of Remote Technical Assistance
      

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

 

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

 

	·  	
      Replace
      hardware components during diagnosis or as remedial
    actions.

 

	·  	
      Generate
      performance/availability reports and associated trend
      analysis.

 

	·  	
      Gather
      data in a timely manner in support of Airspan’ diagnostic process when
      reasonably within the technical competency of
Axtel.

 

	·  	
      Identify
      issues requiring hardware replacement

 

	·  	
      Perform
      software upgrades and/or patch applications

 

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

 

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

 

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

 

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

 

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

 

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Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

 

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

 

	-  	
      Performing
      day-to-day maintenance and network
operations

 

	-  	
      Monitoring
      network and system alarms

 

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

 

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

 

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

 

		1.1.3	Technical
      Assistance Services Assumptions

For
Remote Technical Assistance the following assumptions will apply:

 

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

 

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

 

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

 

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

 

		1.1.4	Exclusions

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

 

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

 

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

 

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

 

	·  	
      Analyzing
      trace / log / dump / Operational Measurement (“OM”)
      information

 

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Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

 

	·  	
      Emergency
      Recovery

 

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

 

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

 

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

 

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

 

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

 

		1.2	Return
      and Replace Service

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

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

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

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

		1.2.1	Like
      for Like Replacement

 

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

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7

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Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

	
      Ref
	
      Part
      Number
	
      Description
	
      Quantities

	
      1
	
      NTEG72AD
	
      TBM
	
      16

	
      2
	
      NTEG77EC
	
      TMU
	
      16

	
      3
	
      NTED4575
	
      TPM
	
      8

	
      4
	
      NTEG63AA
	
      TTM
	
      8

	
      5
	
      NTEG73AA
	
      NMM
	
      4

	
      6
	
      NTEG74BA
	
      OVPM
	
      12

	
      7
	
      NTEG71HA
	
      TPM-PD
	
      12

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

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

		1.2.2	Axtel
      Responsibilities for Return and Replace
Services

Axtel
will be required to:

 

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

 

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

 

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

 

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

 

		1.2.3	Assumptions
      for Repair Services

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

 

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

 

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

 

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Warranty Services 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

		1.2.4	Exclusions
      to Repair Services

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Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

The
following exclusions will govern the delivery of repair Services:

 

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

 

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

 

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

 

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

 

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

 

		2.0	GENERAL

 

		2.1	Holidays
      Observed by Airspan

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

 

		2.2	Call
      Center Access for Technical Support

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

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

 

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

 

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

 

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

 

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

 

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

 

		2.2.1	Airspan
      Technical Support Services Call Process 

When
calling Airspan for Technical Assistance or Emergency Recovery, Axtel’s
representative will be asked to provide the following information:

 

	1.  	
      Company
      name 

 

	2.  	
      Caller
      name and phone number

 

	3.  	
      Personal
      Identification Number (PIN) or a unique Axtel Purchase Order number or
      credit card number, if a PIN has not been
issued.

 

	4.  	
      Site
      Location/Site ID

 

	5.  	
      Product
      on which the problem is being reported

 

	6.  	
      Problem
      description and severity

 

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

 

	2.2.2  	
      Call
      Center Phone Numbers

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

 

Tel: +
(1) 561
893-8679

email:
from the Airspan Web 

Site :://www.airspan.com/Ultra/ContactForm/supportform.asp

 

		2.2.3	Technical
      Support Response Times

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

 

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Purchase
and License Agreement for FWA Equipment (December 2004)

		2.2.4	Technical
      Support Case Priority

 

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

 

	
      TL9000
      Severity Classification 
	
      Airspan
      Case Priority & Definition
	
      Examples

	
      Critical
	
      E1

      Problems
      that severely affect service, capacity/traffic, billing and maintenance
      capabilities and require immediate corrective action, regardless of time
      of day or day of the week. 
	
      Ø Total
      or partial network element outage

      Ø A
      reduction in capacity or traffic handling capability such that expected
      loads cannot be handled

      Ø Failure
      resulting in dynamic routing, switching capability or transport
      loss

      Ø Any
      loss of safety or emergency capability (e.g., emergency calls such as 911
      in North America)

      Ø Loss
      of the system’s ability to perform automatic system
      reconfiguration

      Ø Inability
      to restart the system

      Ø Loss
      of billing/accounting capability

      Ø Corruption
      of billing or system databases that requires service affecting corrective
      actions

      Ø Other
      problems that severely affect service, capacity/traffic, billing, and
      maintenance capabilities or are jointly viewed by Airspan and Axtel as
      critical

	
      TL9000
      Severity Classification 
	
      Airspan
      Case Priority & Definition
	
      Examples

	
      Major

       
	
      E2

      Problems
      that result in potential service degradation and/or total outage. Serious
      situation not involving service degradation in a live environment, but
      leading to a total or partial loss of redundancy. 
	
      Ø Loss
      of redundancy of critical functions 

      Ø Loss
      of protection switching capability

      Ø Short
      outages equivalent to system or subsystem outages not seriously impacting
      service with accumulated duration of greater than two minutes in any
      24-hour period, or that continue to repeat during longer
      periods

      Ø A
      reduction in provisioned capacity of 5% and for a cumulative duration of
      more than 10 minutes per 24 hours

      Ø Repeated
      degradation of DS1/E1 or higher rate spans or connections

      Ø Loss
      of system’s ability to perform automatic system
      reconfiguration

      Ø Loss
      of access to maintenance or recovery operations

      Ø Any
      loss of functional visibility and/or diagnostic capability

      Ø Loss
      of system’s ability to provide any required system critical/major
      alarms

      Ø Total
      loss of access to provisioning

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Purchase
and License Agreement for FWA Equipment (December 2004)

	
      TL9000
      Severity Classification 
	
      Airspan
      Case Priority & Definition
	
      Examples

	
      Major
	
      Business
      Critical

      Problems
      that result in a major degradation of system or service performance that
      impacts service quality or significantly impairs network operator control
      or operational effectiveness. Overall network is degraded resulting in
      severe limitations to operations or network management software product
      has major feature that is not working properly with only difficult
      workaround.
	
      Ø The
      customer has been given a work-around but the situation still requires
      constant attention due to the temporary nature of the
      work-around

      Ø Software
      application/migration issues that gate the introduction of new services or
      functionality

      Ø Billing
      error rates that exceed specifications

      Ø Corruption
      of system or billing databases

	
      TL9000
      Severity Classification 
	
      Airspan
      Case Priority & Definition
	
      Examples

	
      Major

       
	
      Major

      Problems
      that result in conditions that seriously affect system operation,
      maintenance and administration, etc. and require immediate attention. The
      urgency is less than in a Business Critical situation because of a lesser
      immediate or impending effect on system performance, customers, and
      Axtel’s operation and revenue.
	
      Ø Degradation
      of any capacity/traffic measurement function; degradation of functional
      visibility and/or diagnostic capability

      Ø Degradation
      of access for maintenance or recovery operations

      Ø Degradation
      of the system’s ability to provide any required system critical/major
      alarms

      Ø Loss
      of access for routine administrative activity

      Ø Any
      system failure without direct immediate impact

      Ø Intermittent
      degradation of services; partial loss of access to
      provisioning

      Ø Software
      application/migration issues that do not impact service

      Ø Reduction
      in any capacity/traffic measurement function

      Ø Any
      loss of functional visibility and/or diagnostic capability

      Ø Any
      significant increase in product-related customer trouble
      reports

      Ø Follow-up
      to E1 customer problems

      Ø Other
      problems that disrupt or prevent routine system activities, or problems
      that are jointly viewed as Major events by Airspan and
    Axtel

 

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      TL9000
      Severity Classification 
	
      Airspan
      Case Priority & Definition
	
      Examples

	
      Minor
	
      Minor

      Problems
      do not significantly impair the functioning of the system and do not
      significantly affect service to customers. These problems are tolerable
      during system use. 
	
      Ø Service
      analysis, recorded announcements, operational measurements, maintenance
      program, or network management problems; or system-related documentation
      inaccuracies, that do not affect call processing

      Ø Test
      equipment failures for which a backup or manual alternative can be
      employed

      Ø Circuit
      pack testing problems

 

		2.2.5	Case
      Resolution Objectives and Escalation
Procedures

 

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

 

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

 

“Table
2 - R”

 

	
      TL9000
      Severity Classification
	
      Actions
	
       

      Response
      Times 
	
       

      Target
      Service restoration time
	
      Resolution
      Targets

      Based
      on RQMS*

	
      Business
      Hours
	
      Non
      - Business Hours

	
      E1
      (*1)
	
      Worked
      continuously (7 x 24) until resolution or workaround is
      provided
	15
      min 
	30
      min
	
      7
      Hr
	24
      hr

	
      E2
      (*1)
	
      Worked
      continuously (7 x 24) until resolution or workaround is
      provided
	15
      min
	30
      min 
	
      8
      Hr
	10
      Days 

	
      Business
      Critical and Major (*2)
	
      Worked
      during normal business days and business hours. 
	 

      2
      hrs
	Next
      Business 

      Day
	
      24
      Hr
	30
      Days 

	
      Minor
      (*2)
	
      Worked
      during normal business days and business hours.
	Next
      Business Day 
	Next
      Business Day 
	
      30
      Days
	180
      days

 

(*1) This
Service is provided 7 x 24

 

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

 

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

 

* RQMS -
Reliability
and Quality Measurements for Telecommunications Systems.

 

Page
14

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

“Airspan
Escalation Procedure”

 

	 	
      Axtel’s
      NOC
	 
	 	 	 
	 	
      Call
      Center Airspan
	 
	 	 	 
	 	
      Airspan
      Technical Support Engineer
	 
	 	 	 
	 	
      Airspan
      Technical Support Manager.
	 
	 	 	 
	 	
      Airspan
      Technical Support Sr. Mgr.
	 
	 	 	 
	 	 	 
	 	 	 
	
      Airspan
      Technical Support Director
	 	
      Airspan
      Axtel Operation Leader

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

		2.2.6	Case
      Progress Status

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

 

	
      Status
	
      Description
	
      Airspan
      Clock

	
      Newly
      Opened
	
      This
      status is the default. It signifies that no work has been done on the
      case.
	
      Start

	
      WIP
      Level 1
	
      This
      status is used when a NTS Engineer is actively working on the
      Case.
	
      Not
      Stopped

	
      WIP
      Level 2
	
      This
      status is used when a Second Level Support Engineer is actively working a
      case

      *
      Second Level Support: Software Support, Product Support.
	
      Not
      Stopped

	
      Escalated
      To Design
	
      This
      status is used when a Design Engineer is actively working on the
      case
	
      Not
      Stopped

Page
15

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

	
      Status
	
      Description
	
      Airspan
      Clock

	
      Answer
      From Design
	
      Design
      Engineer has concluded its investigation and has replied back to the NTS
      Engineer
	
      Not
      Stopped

	
      With
      A Axtel
	
      During
      the course of conducting their research, the NTS Engineer may need
      additional information or activity from the Axtel. The "With a Axtel”
      status is assigned when the NTS Engineer is waiting on a Axtel response in
      order to continue investigation
	
      Stopped

	
      Interim
      Solution
	
       

      If
      a temporary solution is provided that eliminates Axtels pain until a
      permanent solution can be delivered, RQMS requirements allow the case to
      be set to an “IS” status during this window of time if approved by the
      Axtel. In calculating case age, this interval will be discounted if the
      permanent fix was delivered on the negotiated commitment date. If the
      permanent fix does not resolve the reported problem, case status shall be
      changed to Work in Progress (Level 1 or 2). If the case is returned to a
      Work in Progress (Level 1 or 2) status after using the IS, the IS time
      period will be added to the RQMS age of the case.
	
      Stopped

	
      Future
      Deliverable
	
      Axtel
      agrees to live with the problem condition and that the fix will be
      delivered as part of a future Airspan product release (software release,
      maintenance release, documentation release or hardware revision.
      Requirements to use this status include Axtel consent; fix identification,
      and delivery commitment. This status code does not add time to the RQMS
      age of the case unless the solution fails and the case is moved back to
      Work in Progress (Level 1 or 2) status. If the case is returned to a Work
      in Progress (Level 1 or 2) status after using the FD, the FD time period
      will be added to the RQMS age of the case.
	
      Stopped

	
      Solution
      Delivered
	
      Solution
      Delivered or available for testing and verification. If the delivered
      solution does not resolve the reported problem, the status will be changed
      to Work in Progress (Level 1 or 2). If the case is returned to a Work in
      Progress (Level 1 or 2) status after using the SD status, the SD time
      period will be added to the RQMS age of the case.
	
      Stopped

	
      Pending
      OEM Vendor
	
      The
      case has been handed over to an OEM Vendor for resolution
	
      Not
      Stopped

 

		2.2.7	Case
      Resolutions Classifications

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

 

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

 

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

 

	·  	
      Design
      Intent:
      The functionality required by customer does not align with the design
      specifications of the product set forth in Agreement, in which case
      Airspan shall make clear to Axtel which is such design specification
      (i.e., the functionality is unsupported), and the issue can only be
      resolved through new development efforts subject to a separate product
      development agreement and charges.

 

Page
16

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

	·  	
      External
      Cause:
      Issue caused by non-Airspan products

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	2.3  	
      Axtel
      Order Process for FWA Repair
Services

This
process supports the delivery of Airspan FWA Repair Services for
Axtel.

When
requesting a Hardware warranty repair service, Axtel should have the
following required information ready when placing a repair order with
Airspan:

	1.  	
      Axtel
      or distributor name

	2.  	
      Axtel
      ID (Project #, Site ID)

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

	4.  	
      Axtel
      ship to address

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

	6.  	
      Quantity
      (quantity of one per serial number)

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

	8.  	
      Warranty
      status

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

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

	11.  	
      Any
      special shipping instructions

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

Page
17

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

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

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

 

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

 

+
44-1895-467397

 

Faxes

All faxed
orders will be processed and assigned an RMA# by the close of the next business
day. Faxed emergency orders must also be called in to verify receipt of
faxes.

E-mail

To obtain
a parts request form by e-mail, please send an e-mail message to any of the
above addresses and note “repair order form” in the subject/title field. A form
will be sent automatically.

Place the
PO number in the subject/title field when e-mailing a completed parts request
form back to Airspan. For order confirmation, Airspan will respond with an RMA
number to all e-mail orders by the next business day.

 

		2.4.1	Method
      of Payment for Excluded Services

 

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

 

		2.4.2	Package
      Labeling Instructions and Addresses for
Returns

 

Circuit
packs should be packed in anti-static containers designed specifically for the
circuit packs in order to avoid damage during shipment. Other parts should be
individually wrapped in either anti-static packaging or packaging specifically
designed for that product to avoid damage during shipment. Airspan will inform
customers of any improper packaging, which will void the warranty.

 

All
materials should be returned pre-paid and sent to the appropriate Airspan repair
facility. The customer should use discretion in selecting shipping methods.
Airspan recommends that customers insure all packages to cover possible loss or
damage during shipping, regardless of warranty status.

 

Page
18

Annex G -
Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

A
completed Airspan fault report must be filled out and attached to each returned
item to assist in failure assessment and problem tracking. Fault reports are
sent with each replacement shipment. Axtel can obtain additional supplies by
contacting the Airspan Customer Support Center. 

 

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

 

Defective
Return Packing Slips

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

Item
(Information Required)

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

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

	3.  	
      Ship
      via (Carrier or Enterprise name)

	4.  	
      Waybill
      number (Carrier or Enterprise tracking
number

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

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

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

	8.  	
      Site
      ID or Project number 

	9.  	
      Item
      Number

	10.  	
      Quantity
      ordered

	11.  	
      Quantity
      returned

	12.  	
      Airspan
      Part number

	13.  	
      Description
      of item

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

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

Repair
Facility Addresses

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

Attn:
Airspan Hardware Support Representative

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

Page
19

 

Annex H
- Warranty Services 

Purchase
and License Agreement for FWA Equipment (December 2004)

ANNEX
H

 

ACCEPTANCE
PROCEDURE 

NEW
FWA RSS F6 UNIT 

Annex H
- Warranty Services 

Purchase
and License Agreement for FWA Equipment (December
2004)

PURCHASE
AND LICENSE AGREEMENT FOR FWA EQUIPMENT

ANNEX
H 

ACCEPTANCE
PROCEDURE - NEW FWA RSS F6 UNIT 

 

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

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

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

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

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

Page
2

 

Annex
J

Purchase
and License Agreement for FWA Equipment (December 2004)

Annex
J

 

PLA
FWA Delivery Times

 

Annex
J

Purchase
and License Agreement for FWA Equipment (December
2004)

ANNEX
J

DELIVERY
TIMES

1.-
 Delivery
Time of any FWA Product

	 	
      (i)
	
      Any
      FWA Product

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

2.-
 Partial
Deliveries

	 	
      (i)
	
      RSS
      Equipment

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

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

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

c. unless
otherwise agreed in writing by the Parties.

	 	
      (ii)
	
      RBS
      Equipment 

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

	 	
      (iii)
	
      Segregated
      RBS Equipment or Spare Parts

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

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

Page
2

Annex
K

Purchase
and License Agreement for FWA Equipment (December 2004)

 

 

ANNEX
K 

 

PURCHASE
COMMITMENT 

Annex
K

Purchase
and License Agreement for FWA Equipment (December
2004)

 

ANNEX
“K”

PURCHASE
COMMITMENT

 

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

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

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

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

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

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

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

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

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

Page
2

Annex
K

Purchase
and License Agreement for FWA Equipment (December 2004)

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

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

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

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

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

Page
3Unassociated Document

CONFIDENTIAL
TREATMENT REDACTED VERSION

 

LICENSE
AGREEMENT

 

BETWEEN

ADVAXIS,
INC.

(COMPANY)

AND

THE
TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA

(PENN)

_____

EFFECTIVE
DATE: JUNE 17, 2002

 

Table
of Contents

	
      1.
      Definitions
	 
	 	 
	
      2.
      License Grant
	 
	 	 
	
      3.
      Fees and Royalties
	 
	 	 
	
      4.
      Confidentiality
	 
	 	 
	
      5.
      Term and Termination
	 
	 	 
	
      6.
      Patent Maintenance and Reimbursement
	 
	 	 
	
      7.
      Infringement And Litigation
	 
	 	 
	
      8.
      Disclaimer Of Warranties; Indemnification
	 
	 	 
	
      9.
      Use Of PENN's Name
	 
	 	 
	
      10.
      Additional Provisions
	 

Attachment
1 - List
of Intellectual Property

 

Attachment
2 -
Joinder Agreement

 

Attachment
3 -
Development Plan

 

Attachment
4 - Stock
Purchase Agreement

 

Attachment
5 -
Shareholders Agreement

Attachment
6 - Form
NDA

Attachment
7 - Client
and Billing Agreement

Attachment
8 -
Required Territories

 

Page 2 of
26

LICENSE
AGREEMENT

This
License Agreement ("AGREEMENT") is between The Trustees of the University of
Pennsylvania, a Pennsylvania nonprofit corporation, with offices located at 3700
Market Street, Suite 300, Philadelphia, Pennsylvania 19104-3147 ("PENN") and
Advaxis, Inc., a corporation organized and existing under the laws of Delaware
("COMPANY"), having a place of business at 250 West Lancaster Avenue, Ste 100,
Paoli, PA 19301.

This
AGREEMENT shall be and become effective on the date (the “EFFECTIVE DATE”) on
which COMPANY raises two-hundred fifty thousand dollars ($250,000) of equity
capital or convertible debt, whereupon the COMPANY shall be deemed to have
exercised its rights under the Option (as defined below).

BACKGROUND

A. PENN
owns issued and pending U.S. and foreign patent applications based upon
information in PENN Dockets D751, H1219, H1219 - CIP, J1598, M2244, M2244 - CIP,
N2483 (which was joined with M2244), O2876 and O2883 naming Dr. Yvonne Paterson
and colleagues of PENN’s School of Medicine, as inventors; and,

B. PENN
and COMPANY have entered into a Exclusive Negotiation and Option Agreement (the
“Option”) with an effective date of March 15, 2002 and extendable upon agreement
of the parties, which grants COMPANY exclusive rights to negotiate for a license
to such pending U.S. and foreign patents and patent applications;
and,

C.
COMPANY desires to fund further research by Dr. Paterson relating to therapeutic
vaccines based on LLO-antigen fusion proteins under a sponsored research
agreement between PENN and COMPANY; and,

D.
COMPANY desires to obtain the exclusive right and license to use and exploit the
intellectual property developed by Dr. Paterson, et al, as described in
Attachment 1,
in
accordance with the DEVELOPMENT PLAN (as defined below); and,

E. PENN
has determined that commercial exploitation of the intellectual property
developed by Dr. Paterson in accordance with the terms of this AGREEMENT is in
the best interest of PENN and is consistent with its educational and research
missions; and, 

NOW,
THEREFORE, in consideration of the promises and covenants contained in this
AGREEMENT and intending to be legally bound, the parties agree as
follows:

1.
DEFINITIONS

1.1    AFFILIATE
means, any
legal entity directly or indirectly controlling, controlled by or under common
control with COMPANY that has executed a Joinder Agreement substantially in the
form of Attachment 2 or such other form as PENN and COMPANY may hereafter agree
in writing. For purposes of this AGREEMENT, "control" means the direct or
indirect ownership of more than fifty percent (50%) of the outstanding voting
securities of a legal entity, or the right to receive more than fifty percent
(50%) of the profits or earnings of a legal entity, or the right to control the
policy decisions of a legal entity.

Page 3 of
26

1.2    CALENDAR
QUARTER means each three calendar month period beginning on January 1, April 1,
July 1 and October 1, or any portion thereof, arising during the term of this
AGREEMENT.

1.3    DEVELOPMENT
PLAN means a plan for the development and/or marketing of the PENN PATENT RIGHTS
and/or PENN LICENSED PRODUCTS that reasonably demonstrates COMPANY's capability
to bring such patent rights, technical information and/or products to practical
application, as more fully described in the
Attachment 3, consisting of the following: 

1.3.1 development
activities to be undertaken, including proposed dates of completion of all major
milestones to develop and commercialize PENN LICENSED PRODUCTS;

1.3.2 a list of
all government regulatory approvals, including the nature of submissions and
government agencies involved in pre-market clearance;

1.3.3 a list of
current competitors and their competitive products, including competitors' known
plans for further development of competing technologies; and

1.3.4 anticipated
dates of first SALE of each PENN LICENSED PRODUCT described in the DEVELOPMENT
PLAN.

1.4    FAIR
MARKET VALUE means the cash consideration which COMPANY, an AFFILIATE, or any
sublicensee would realize from an unaffiliated, unrelated buyer in an arm's
length sale of an identical item sold in the same quantity and at the same time
and place of the transaction.

1.5    FIELD OF
USE means therapeutic use in humans and other mammals.

1.6    NET SALES
means the consideration or FAIR MARKET VALUE attributable to the SALE of any
PENN LICENSED PRODUCT(S), less the qualifying costs set forth below that are
directly attributable to such SALE and actually identified on the invoice and
borne by COMPANY, an AFFILIATE, or any sublicensee. Such qualifying costs shall
be limited to the following:

 

1.6.1
Discounts, in amounts customary in the trade, for quantity purchases, prompt
payments and for wholesalers and distributors.

 

1.6.2
Credits or refunds, not exceeding the original invoice amount, for claims or
returns.

 

Page 4 of
26

1.6.3
Prepaid outbound transportation expenses and transportation insurance
premiums.

 

1.6.4
Sales and use taxes and other fees, duties, and imports imposed by any
governmental agency.

1.7   PENN
LICENSED PRODUCT(S) means products which are made, made for, used or sold by
COMPANY, an AFFILIATE, or any sublicensees and which: (1) in the absence of this
AGREEMENT would infringe at least one Valid Claim or (2) use a process or
machine covered by a Valid Claim.

1.8   PENN
PATENT RIGHTS means all patents represented by or issuing from those United
States patent applications listed in Attachment 1, including continuation,
divisional and re-issue applications and any foreign counterparts and extensions
of the foregoing.

1.9   PRIMARY
STRATEGIC FIELD shall be
Cancer, including Cancer caused by infection.

1.10   SALE
means any bona fide transaction for which consideration is in fact received by
COMPANY or AFFILIATE or any sublicensee hereunder or expected for the sale, use,
lease, transfer or other disposition of PENN LICENSED PRODUCT(S). A SALE shall
be deemed completed at the time COMPANY, an AFFILIATE, or any sublicensee
invoices, ships, or receives payment for such PENN LICENSED PRODUCT(S),
whichever occurs first.

1.11   SECONDARY
STRATEGIC FIELDS includes
(a) Infectious Disease, (b) Allergy, (c) Autoimmune Disease, and (d) any other
therapeutic indications for which PENN LICENSED PRODUCT(S) are
developed.

1.12   SPONSORED
RESEARCH AGREEMENT means a sponsored research agreement between PENN and COMPANY
providing for the conduct of certain research consistent with this AGREEMENT,
all on terms and conditions acceptable to PENN and COMPANY.

1.13   VALID
CLAIM means any pending, issued or granted claim of the PENN PATENT RIGHTS that
has not been surrendered, abandoned or declared invalid or unenforceable by an
unappealed and unappealable decision of a court of competent
jurisdiction.

2.
LICENSE GRANT

 

2.1    PENN
grants to COMPANY for the term of this AGREEMENT an exclusive, world-wide right
and license, with the right to grant sublicenses, to make, have made, use,
import, sell and offer for sale PENN LICENSED PRODUCT(S) in the FIELD OF USE.
Except for Section 2.6, no other rights or licenses are granted. Intellectual
property created or conceived during the performance of the SPONSORED RESEACH
AGREEMENT shall be governed by the SPONSORED RESEARCH AGREEMENT.

Page 5 of
26

2.2   This
license grant is exclusive except that PENN may use and permit other not-for
profit organizations to use the PENN PATENT RIGHTS for educational and research
purposes.

2.3   COMPANY
acknowledges that pursuant to Public Laws 96-517, 97-256 and 98-620, codified at
35 U.S.C. 200-212, the United States government retains certain rights in
intellectual property funded in whole or part under any contract, grant or
similar agreement with a Federal agency. Pursuant to these laws, the government
may impose certain requirements regarding such intellectual property, including
but not limited to the requirement that products resulting from such
intellectual property sold in the United States must be substantially
manufactured in the United States. This license grant is expressly subject to
all applicable United States government rights as provided in the
above-mentioned laws and any regulations issued under those laws, as those laws
or regulations may be amended from time to time.

2.4   The right
to sublicense granted to COMPANY under this AGREEMENT is subject to the
following conditions:

2.4.1 In
each such sublicense, COMPANY must prohibit the sublicense from further
sublicensing and require that the sublicensee is subject to the terms and
conditions of the license granted to COMPANY pursuant to Section 2.1 of this
AGREEMENT, the limitations thereon set forth in Sections 2.2 , 2.3 and 2.4 as
well as sublicensee’s compliance with Sections 3.4.4, 5.5, 5.9 and 9, and
COMPANY shall impose upon its sublicensees obligations comparable to those
obligations imposed upon COMPANY pursuant to Sections 8.2 and 8.4 of this
Agreement. COMPANY may submit a written request to PENN to obtain the right to
allow a sublicensee to further sublicense on a case by case basis. Such right to
allow a sublicensee to further sublicense PENN PATENT RIGHTS shall not be
unreasonably withheld provided that COMPANY can validate to PENN’s satisfaction
that such sublicensee has the financial and resource capabilities to develop and
commercialize PENN PATENT RIGHTS and further, such sublicensee agrees that any
sub-sublicense shall be subject to the terms and conditions of the license
granted to COMPANY under this AGREEMENT.

2.4.2
Within thirty (30) days after COMPANY enters into any sublicense, COMPANY shall
deliver to PENN a complete copy of the sublicense written in the English
language. PENN's receipt of the sublicense shall not constitute an approval of
the sublicense or a waiver of any of PENN's rights or COMPANY's obligations
under this AGREEMENT.

2.4.3 In
the event of a DEFAULT under Section 5.3 hereunder all payments then or
thereafter due to COMPANY from its AFFILIATES or sublicensees in connection with
rights granted to such third party pursuant to this Agreement shall upon notice
from PENN to any such AFFILIATE or sublicensee become owed directly to PENN for
the account of COMPANY; provided however, that PENN shall remit to COMPANY the
amount by which such payments exceed the amounts owed by COMPANY to
PENN.

2.4.4 In
the event that COMPANY enters into sublicenses, COMPANY remains primarily liable
to PENN for all of COMPANY'S duties and obligations contained in this AGREEMENT,
and any act or omission of a sublicensee which would be a breach of this
AGREEMENT if performed by COMPANY shall be deemed to be a breach by COMPANY of
this AGREEMENT.

Page 6 of
26

2.5   Promptly
after the date of execution of this AGREEMENT, PENN and COMPANY shall in good
faith negotiate the terms of, and enter into, the SPONSORED RESEARCH AGREEMENT;
provided, however, that neither PENN nor COMPANY shall be obligated to enter
into the SPONSORED RESEARCH AGREEMENT on terms that are not acceptable to such
party in all respects.

2.6   PENN
grants to COMPANY a series of exclusive options during [ * ] following the
EFFECTIVE DATE of this AGREEMENT to obtain exclusive licenses to new inventions
on therapeutic vaccines: (1) involving the use of listeria vectors and/or
listeria antigen and/or PEST-containing fusion proteins in the FIELD OF USE and
(2) developed by, under the supervision of, or in collaboration with Dr. Yvonne
Paterson; to the extent of PENN's ownership interest in any resulting
intellectual property. Each option shall be granted at [ * ] to COMPANY by PENN,
and shall extend for a period of (a) [ * ] from the date of disclosure of such
new inventions if the disclosure was made on or before 12.31.2004, or (b)[ * ]
from the date of disclosure of such new inventions if the disclosure was made
after 12.31.2004 but before the [ * ] anniversary of the EFFECTIVE
DATE. Such
license agreement shall include a license initiation fee of [ * ], shall be
substantially similar in form to this AGREEMENT and shall include no financial
terms that [ * ] in this AGREEMENT. All fees, excluding the license initiation
fee and royalty payments, shall be fully creditable against payments made by
COMPANY to PENN under this AGREEMENT.

2.7   PENN
grants to COMPANY a series of exclusive options during [ * ] following the
EFFECTIVE DATE of this AGREEMENT to obtain exclusive licenses to new inventions
on therapeutic vaccines: (1) involving the use of listeria vectors and/or
listeria antigen and/or PEST-containing fusion proteins in the FIELD OF USE; and
(2) developed by, under the supervision of, or in collaboration with Dr. Fred
Frankel; to the extent of PENN's ownership interest in any resulting
intellectual property. Each option shall be granted at [ * ] to COMPANY by PENN,
and shall extend for a period of (a) [ * ] from the date of disclosure of such
new inventions if the disclosure was made on or before 12.31.2004, or (b) [ * ]
from the date of disclosure of such new inventions if the disclosure was made
after 12.31.2004 but before the [ * ] anniversary of the EFFECTIVE
DATE. Upon
exercise of option by COMPANY, PENN and COMPANY agree to negotiate in good faith
a comprehensive license agreement within ninety (90) days of COMPANY's exercise
of its option. Such license agreement shall include a license initiation fee of
[ * ] fully creditable against license maintenance fees and shall be
substantially similar in form to this AGREEMENT, with financial terms not to
exceed those in this AGREEMENT. 

3.
FEES AND ROYALTIES

3.1   LICENSE
INITIATION FEE AND ROYALTIES

3.1.1 In
partial consideration of the exclusive license granted to COMPANY, COMPANY shall
pay to PENN a non-refundable license initiation fee of [ * ] within thirty (30)
days of the date COMPANY receives in the aggregate [ * ] in equity financing.
The initiation fee paid to PENN pursuant to this Section shall be [ *
].

Page 7 of
26

3.1.2 In
further consideration of the License, COMPANY shall perform its obligations
under that certain Stock Purchase Agreement dated April 19, 2002, between
COMPANY and PENN (“STOCK
PURCHASE AGREEMENT”), a
copy of which is attached as Attachment 4. 

3.1.3. In
further consideration of the exclusive license granted to COMPANY, COMPANY must
pay to PENN, on a quarterly basis, royalties on the annual, worldwide NET SALES
of PENN LICENSED PRODUCTS as follows:

	 	
      
	
      [ *
      ]% on NET SALES in countries with pending or issued patents;
      and

	 	
      
	
      [ *
      ]% on NET SALES in countries without pending or issued
      patents.

However,
in the event that the PENN royalty rates represent greater than [ * ] of any
royalty payable to COMPANY by a sublicensee (on a country-by-country basis in
regard to patent status), PENN’s royalty rate shall be reduced to [ * ]of such
sublicense royalties; provided, however, that at no time will the aggregate
royalty due to PENN for any Calendar Quarter be less than [ * ]of worldwide NET
SALES of PENN LICENSED PRODUCTS. 

3.1.4.
Following the first commercial SALE of a each
PENN LICENSED PRODUCT, COMPANY must pay to PENN non-refundable minimum royalties
in advance on the following dates and in the corresponding amounts:

	 	
      Date
      Payment Becomes Due
	
      Amount 

	 	 	 	 
	 	 	
      the
      first January 1st
      arising after the first commercial SALE
	
      $[
      * ]

	 	 	 	 
	 	 	
      the
      second January 1s
      arising
      after the first commercial SALE
	
      $[
      * ]

	 	 	 	 
	 	 	
      the
      third and fourth January 1st
      arising after the first commercial SALE
	
      $[
      * ]

The
obligation to pay such Minimum Royalties will not, in respect of each PENN
LICENSED PRODUCT, extend beyond January 1st of the [
* ] year following the first commercial sale of that PENN LICENSED PRODUCT. A
minimum royalty payment paid under this Section 3.1.5 shall serve as an advance
payment against royalties due under Section 3.1.3 during the period for which
such minimum royalty payment was paid.

3.1.5
COMPANY will pay PENN, on a quarterly basis, a percentage of any sublicense
initiation fee or any other non-royalty payments received by COMPANY from
sublicensees of PENN PATENT RIGHTS as follows: 

 

Page 8 of
26

 

	 	If
      Sublicense Becomes Effective Anytime:
	
      Percent
      of
Sublicense Fees

	 	 	 
	 	
      On
      or before the 1st
      Anniversary of the EFFECTIVE DATE
	
      [ *
      ]% 

	 	 	 
	 	
      After
      the 1st
      and on or before the 2nd
      Anniversary of the EFFECTIVE DATE 
	
      [ *
      ]%

	 	 	 
	 	
      After
      the 2nd
      and on or before 3rd
      Anniversary of the EFFECTIVE DATE
	
      [ *
      ]%

	 	 	 
	 	
      After
      the 3rd
      and on or before the 4th
      Anniversary of the EFFECTIVE DATE
	
      [ *
      ]%

	 	 	 
	 	
      After
      the 4th
      Anniversary of the EFFECTIVE DATE
	
      [ *
      ]%

Such
sublicense payments include but are not limited to: i) upfront cash payments
made to COMPANY in consideration of the sublicense, but excluding funds paid to
COMPANY for research and development purposes and equity investments in COMPANY
at FAIR MARKET VALUE, and excluding equity received by COMPANY in affiliates,
joint venture partners and sublicensees; ii) "premium" over the fair market
value of equity investments in COMPANY, where "premium" is defined as the amount
by which cash amounts received by COMPANY for a particular equity security
exceed the fair market value of such security and, notwithstanding the
definition of FAIR MARKET VALUE set forth in Section 1.4 above, the fair market
value of securities shall, for purposes of this Section 3.1.5(ii), be the
average of the final “bid” and “ask” price of COMPANY's securities as of the
close of business on the last business day prior to the date such securities are
transferred to COMPANY if such securities are publicly traded or, in the event
that such securities are not traded in the public market, the fair market value,
as of the date of such securities are issued to the sublicensee, shall be
established in good faith by the COMPANY Board of Directors; and iii) the fair
market value of non-cash consideration received by COMPANY from a sublicensee
(excluding equity received by COMPANY in sublicensee), where such fair market
value, notwithstanding the definition of FAIR MARKET VALUE set forth in Section
1.4 above, is determined as of the date such consideration is received by
COMPANY and equals the fair market value determined in good faith by the COMPANY
Board of Directors

3.1.6 NET
SALES of any PENN LICENSED PRODUCT shall not be subject to more than one
assessment of the scheduled royalty; such assessment shall be the highest
applicable royalty. Where any PENN LICENSED PRODUCT is the subject of a SALE by
the COMPANY or any AFFILIATE but the COMPANY concludes in good faith that, in
the ordinary course of business, the same PENN LICENSED PRODUCT will be the
subject of a subsequent SALE by the COMPANY or any AFFILIATE for an amount
greater than the consideration paid for the previous SALE, the COMPANY may
exclude consideration paid for the previous SALE from NET SALES until the date
arising ninety (90) days after the date of the previous SALE;. If a
subsequent SALE for an amount greater than the consideration paid for the
previous SALE arises prior to such date, then the consideration paid for the
previous SALE shall be permanently excluded from NET SALES; if there is no
subsequent SALE for an amount greater than the consideration paid for the
previous SALE prior to such date, then the consideration paid for the previous
SALE shall be included in NET SALES, but shall still be credited against any
subsequent SALE of the same PENN LICENSED PRODUCT for a higher
price.

Page 9 of
26

3.2   MILESTONE
PAYMENTS

The
following milestone payments are non-refundable, non-creditable, and payable to
PENN by COMPANY within forty-five (45) days following the achievement of the
following milestones as follows:

3.2.1 [ * ]
shall be due for first commercial SALE of the first PENN LICENSED PRODUCT in the
PRIMARY STRATEGIC FIELD. Such payment shall be payable as follows: [ * ] shall
be paid within forty-five (45) days of the date of the first commercial SALE, [
* ] shall be paid on the first Anniversary of the first commercial SALE; and [ *
] shall be paid on the second Anniversary of the date of the first commercial
SALE.

3.2.2 [ * ]
shall be due and payable within forty-five (45) days following the date of the
first commercial SALE of a PENN LICENSED PRODUCT in a SECONDARY STRATEGIC FIELD;
provided,
however, that
this fee shall [ * ] for each of the SECONDARY STRATEGIC FIELDS in which PENN
LICENSED PRODUCTS are sold.

3.3   DILIGENCE
AND MAINTENANCE FEES

3.3.1
Financial Due Diligence

 

3.3.1.1 COMPANY
shall, within twelve (12) months of the EFFECTIVE DATE, raise at least [ * ] in
equity financing or convertible debt from reputable investors.

 

3.3.1.2
COMPANY shall, within thirty-six (36) months of the EFFECTIVE
DATE, raise
at least an additional [ * ] in equity financing or convertible debt from
reputable investors.

 

3.3.3
Developmental Due Diligence. 

3.3.3.1 COMPANY
will use commercially reasonable efforts to develop, commercialize, and market
PENN LICENSED PRODUCTS as soon as practical, consistent with the terms of the
DEVELOPMENT PLAN and any DEVELOPMENT PLAN PROGRESS REPORTS provided pursuant to
Section 3.6.1 of this AGREEMENT. The DEVELOPMENT PLAN will be prepared by
COMPANY and delivered to PENN prior to the EFFECTIVE DATE. 

 

3.3.3.2 COMPANY
agrees to commit resources (including relevant resources dedicated by
sublicensees and strategic or collaboration partners and including research
grants for Dr. Paterson) during the term of this AGREEMENT to the development
and commercialization of PENN LICENSED PRODUCTS in the PRIMARY STRATEGIC FIELD
in amounts not less than the following: 

 

Page 10 of
26

 

	
      Anniversary
      of 
	
      Required
      Diligence

	
      EFFECTIVE
      DATE
	
      Expenditure
      

	 	 
	
      First
      
	
      $[
      * ]

	
       

      Second
      
	
       

      $[
      * ]

	
       

      Third
	
       

      $[
      * ]

	
       

      Fourth
	
       

      $[
      * ]

	
       

      Fifth
      and thereafter 
	
       

      $[
      * ]

Notwithstanding
the above, COMPANY shall be not be obligated to make any due diligence
expenditures at any time after the date the COMPANY first becomes obligated to
pay minimum royalties pursuant to Section 3.1.5. In the event that total
expenditures for the development and commercialization of PENN LICENSED PRODUCTS
do not meet or exceed the amounts set forth above, COMPANY must pay to PENN the
difference between the mandated amount listed above and the actual amount
expended by COMPANY and/or its sublicensees, strategic or collaboration
partner(s). Funds invested in development in a given year that are in excess of
the above amounts shall be creditable up to $[ * ] against the diligence
requirements of the following year.

3.3.3.3 SECONDARY
STRATEGIC FIELDS: By [ * ] of the EFFECTIVE DATE, COMPANY must either (i)
initiate research and development programs for the SECONDARY STRATEGIC FIELDS of
infectious disease, allergy, and autoimmune disease, at an initial annual
expense level of at least [ * ] per field, or (ii) partner with or grant one or
more third parties rights for the commercial development of PENN LICENSED
PRODUCTS in one or more of such SECONDARY STRATEGIC FIELDS.

 

3.3.3.4 In the
event COMPANY develops PENN LICENSED PRODUCTS in any SECONDARY STRATEGIC FIELDS
pursuant to Section 3.3.3.3, part (i), the parties will negotiate in good faith
due diligence requirements for subsequent years for such SECONDARY STRATEGIC
FIELD under development at that time. If COMPANY fails to complete either part
(i) or (ii) as described in Section 3.3.3.3 above for such SECONDARY STRATEGIC
FIELD(S) by [ * ] anniversary of the EFFECTIVE DATE, COMPANY will forfeit all
rights for development of commercial products in such SECONDARY STRATEGIC
FIELDS, and rights will return to PENN for such SECONDARY STRATEGIC FIELD(S).
PENN will thereafter be free to enter into agreements for such forfeited rights
with any third party for commercial development in the respective SECONDARY
STRATEGIC FIELD(S).

3.3.6 COMPANY
must pay to PENN annual license maintenance fees, according to the following
schedule: 

 

	
      Due
      Date:
	
      Amount:

	 	 
	
      1st
      anniversary of EFFECTIVE DATE 
	
      $[
      * ]

	
       

      2nd
      anniversary of EFFECTIVE DATE 
	
       

      $[
      * ]

	
       

      3rd
      anniversary of EFFECTIVE DATE 
	
       

      $[
      * ]

	
       

      4th
      anniversary of EFFECTIVE DATE 
	
       

      $[
      * ]

	
       

      5th
      anniversary of EFFECTIVE DATE 
	
       

      $[
      * ]

	
       

      6th
      anniversary of EFFECTIVE DATE and each anniversary
    thereafter
	
       

      $[
      * ]

Page 11 of
26

provided,
however, that
such fees shall not be payable on any anniversary of the EFFECTIVE DATE arising
at any time after the first commercial SALE of a PENN LICENSED
PRODUCT.

3.4   REPORTS
AND RECORDS

3.4.1 On each
December 1 arising during the term of this AGREEMENT, COMPANY must provide PENN
with written progress reports,
(each a
“DEVELOPMENT PLAN PROGRESS REPORT”), setting forth COMPANY'S progress regarding
its efforts to develop and commercialize PENN LICENSED PRODUCTS, including
activities of AFFILIATES and sublicensees, for the preceding year. COMPANY shall
also notify PENN within thirty (30) days of the first commercial SALE by the
COMPANY, an AFFILIATE, or any sublicensee of each PENN LICENSED PRODUCT. Each
DEVELOPMENT PLAN PROGRESS REPORT shall include, without limitation:

3.4.1.1 The date
of the DEVELOPMENT PLAN PROGRESS REPORT and the time covered by such
report.

3.4.1.2 Major
activities and accomplishments completed by COMPANY, any AFFILIATE or any
sublicensee since the last DEVELOPMENT PLAN PROGRESS REPORT.

3.4.1.3
Significant research and development projects currently being performed by
COMPANY, any AFFILIATE, or any sublicensee and projected dates of
completion.

3.4.1.4
Future development activities expected to be undertaken by COMPANY, any
AFFILIATE, or any sublicensee during the next reporting period.

 

3.4.1.5
Current development stage (e.g., pre-clinical, Phase I, Phase II or Phase II) of
each PENN LICENSED PRODUCT and targeted date of NDA approval, if
any.

3.4.1.6
Significant changes to the DEVELOPMENT PLAN, including the reasons for the
changes.   

3.4.1.7
Summary of development efforts related to PENN PATENT RIGHTS being performed by
third parties including the nature of the relationship between the COMPANY
and such third parties.

3.4.2 
COMPANY
must deliver to PENN within forty-five (45) days after the end of each CALENDAR
QUARTER a report, certified by the chief financial officer of COMPANY, setting
forth the calculation of the royalties due to PENN for such CALENDAR QUARTER,
including, without limitation:

Page 12 of
26

 

3.4.2.1 Number of
PENN LICENSED PRODUCTS involved in SALES, listed by country.

 

3.4.2.2 Gross
consideration for SALES of PENN LICENSED PRODUCTS, including all amounts
invoiced, billed, or received.

 

3.4.2.3 Qualifying
costs, as defined in Section 1.5, listed by category of cost.

 

3.4.2.4 NET SALES
of PENN LICENSED PRODUCTS listed by country.

 

3.4.2.5 Royalties
owed to PENN, listed by category, including without limitation earned,
sublicensee-derived, and minimum royalty categories.

 

3.4.2.6 Earned
royalty amounts credited against minimum royalty payments. 

3.4.3 COMPANY
must pay the royalties due under Sections 3.1 and 3.3 within forty-five (45)
days following the last day of the CALENDAR QUARTER in which the royalties
accrue. COMPANY must send with the royalties the report described in Section
3.4.1.

3.4.4 COMPANY
must maintain and cause its AFFILIATES and any sublicensees to maintain,
complete and accurate books and records which enable the royalties, fees, and
payments payable under this AGREEMENT to be verified. The records for each
CALENDAR QUARTER must be maintained for five (5) years after the submission of
each report provided pursuant to Section 3.4.2. Upon reasonable prior notice to
COMPANY, COMPANY must provide an independent auditor appointed by PENN and
reasonably acceptable to COMPANY with access to all books and records relating
to the SALES of PENN LICENSED PRODUCTS by COMPANY and its AFFILIATES or any
sublicensees in order to conduct a review or audit of those books and records.
Access to these books and records pertaining to NET SALES must be made available
following the date of the first product sale and then no more than once every
three (3) years following each audit during the term of this AGREEMENT, during
normal business hours, and on two (2) occasions during the three (3) year period
immediately following expiration or termination of this AGREEMENT. If a review
or audit of the [ * ] or more, COMPANY must reimburse to PENN its actual
out-of-pocket costs of employing its auditors in connection with such review or
audit. Notwithstanding the foregoing, COMPANY agrees to conduct, at its expense,
an independent audit of SALES and royalties at least every five (5) years once
annual SALES of a PENN LICENSED PRODUCT are greater than [ * ]. The audit shall
address, at a minimum, the amount of gross sales by or on behalf of COMPANY
during the audit period, the amount of funds owed to PENN under this AGREEMENT,
and whether the amount owed has been paid to PENN and is reflected in the
records of the COMPANY. A report by the auditors shall be submitted promptly to
PENN upon completion.

Page 13 of
26

3.4.5 COMPANY
shall provide to PENN, at
least as frequently as they are distributed to the Board of Directors and/or
management of COMPANY, copies of: all Board and managerial reports that relate
to the PENN
PATENT RIGHTS and
PENN
LICENSED PRODUCTS; and all
business plans, projections and financial statements that are distributed to the
Board of Directors and/or management.

3.5   CURRENCY,
PLACE OF PAYMENT, INTEREST, PAYMENT OF EXPENSES

3.5.1 All
dollar amounts referred to in this AGREEMENT are expressed in United States
dollars. All payments to PENN under this AGREEMENT must be made in United States
dollars by check payable to "The Trustees of the University of Pennsylvania" and
sent to the following address: 

The
Trustees of the University of Pennsylvania

[ *
]

For
electronic transfer, all payments should be sent to the following
address:

[ *
]

3.5.2 If
COMPANY receives revenues from SALES of PENN LICENSED PRODUCTS in currency other
than United States dollars, such revenues shall, for purposes of calculating NET
SALES, be converted into United States dollars at the conversion rate for the
foreign currency as published in the eastern edition of The Wall Street Journal
as of the last business day of the CALENDAR QUARTER in which such NET SALES were
accrued.

3.5.3 Amounts
that are not paid when due shall accrue interest from the due date until paid,
at a rate equal to [ * ] per month (or the maximum allowed by law, if
less).

4.
CONFIDENTIALITY

4.1   CONFIDENTIAL
INFORMATION means and includes all technical information, inventions,
developments, discoveries, software, know-how, methods, techniques, formulae,
data, processes and other proprietary ideas, whether or not patentable or
copyrightable, that PENN identifies as confidential or proprietary at the time
it is delivered or communicated to COMPANY.

4.2   COMPANY agrees to
maintain in confidence and not to disclose to any third party any CONFIDENTIAL
INFORMATION of PENN. COMPANY agrees to ensure that its employees have access to
CONFIDENTIAL INFORMATION only on a need-to-know basis and are obligated in
writing to abide by COMPANY's obligations under this AGREEMENT. The foregoing
obligation shall not apply to:

Page 14 of
26

4.2.1
information that is known to COMPANY or independently developed by COMPANY prior
to the time of disclosure, in each case, to the extent evidenced by written
records promptly disclosed to PENN upon receipt of the CONFIDENTIAL
INFORMATION;

4.2.2
information disclosed to COMPANY by a third party that has a right to make such
disclosure;

4.2.3
information that becomes patented, published or otherwise part of the public
domain as a result of acts by PENN or a third person obtaining such information
as a matter of right; or 

4.2.4 information
that is required to be disclosed by order of United States governmental
authority or a court of competent jurisdiction; provided that COMPANY must use
best efforts to obtain confidential treatment of such information by the agency
or court.

4.2.5
information
disclosed by COMPANY to a third party under the normal course of business,
provided that COMPANY discloses such information under confidentiality
agreements that are substantially in the form of Attachment 6 or such other form
as PENN may from time-to-time approve.

 

4.3   PENN
shall not be obligated to accept any confidential information from COMPANY. PENN
shall use best efforts not to disclose confidential information of COMPANY that
is received by PENN’s Center for Technology Transfer from COMPANY to any third
party (subject to the exceptions analogous to those in Section 4.2). PENN bears
no institutional responsibility for maintaining the confidentiality of any
CONFIDENTIAL INFORMATION other than (i) reports provided pursuant to Sections
3.4.1. and 3.4.2 and (ii)
any information disclosed to PENN's auditor pursuant to Section
3.4.4.

 

4.4   PENN
acknowledges that COMPANY is free to enter into confidentiality agreements with
any faculty members or other employees or students of PENN provided such
agreements are acceptable to the relevant faculty members, employees or students
and are substantially in the form of Attachment 6 or such other form as PENN may
from time-to-time approve. 

5.
TERM AND TERMINATION

5.1   This
AGREEMENT, unless sooner terminated as provided in this AGREEMENT, terminates
upon the later of: (a) expiration of the last to expire or become abandoned of
the PENN PATENT RIGHTS; or (b) twenty (20) years after the EFFECTIVE
DATE.

5.2   COMPANY
may, upon sixty (60) days written notice to PENN, terminate this AGREEMENT by
doing all of the following:

Page 15 of
26

5.2.1
ceasing to make, have made, use, import, sell and offer for sale all PENN
LICENSED PRODUCTS; and

5.2.2
terminating all sublicenses, and causing all AFFILIATES and sublicensees to
cease making, having made, using, importing, selling and offering for sale all
PENN LICENSED PRODUCTS; and

5.2.3
paying all monies owed to PENN under this AGREEMENT and the SPONSORED RESEARCH
AGREEMENT, if any.

 

5.3   PENN may
terminate this AGREEMENT if any of the following events of default (“DEFAULT”)
occur:

 

5.3.1
COMPANY is late in paying to PENN royalties, expenses, or any other monies due
under this AGREEMENT and COMPANY does not pay PENN in full within ninety (90)
days of written demand for such payment; or

5.3.2
COMPANY, experiences a Trigger Event (as defined below); or

5.3.3
COMPANY, or any AUTHORIZED AFFILIATE is in material breach of this AGREEMENT and
such breach is not cured within ninety
(90) sixty
(60) days after written notice of the breach is provided to
COMPANY.

 

5.4   Trigger
Event means any of the following:

 

	 	
      5.4.1
	
      If
      COMPANY,

 

5.4.1.1
becomes insolvent, bankrupt or generally fails to pay its debts as such debts
become due; 

 

5.4.1.2
is adjudicated insolvent or bankrupt; admits in writing its inability to pay its
debts; or shall suffer a custodian, receiver or trustee for it or substantially
all of its property to be appointed and, if appointed without its consent, not
be discharged within thirty (30) days; or

 

5.4.1.3
makes an assignment for the benefit of creditors; or suffers proceedings under
any law related to bankruptcy, insolvency, liquidation or the reorganization,
readjustment or the release of debtors to be instituted against it and, if
contested by it, not dismissed or stayed within ten (10) days; 

 

5.4.2 If
proceedings under any law related to bankruptcy, insolvency, liquidation, or the
reorganization, readjustment or the release of debtors are instituted or
commenced by COMPANY; 

 

5.4.3 If any
order for relief is entered relating to any of the proceedings described in
Sections 5.4.1 or 5.4.; 

 

5.4.4 If
COMPANY shall call a meeting of its creditors with a view to arranging a
composition or adjustment of its debts;

 

Page 16 of
26

5.4.5 If any
sublicensee experiences an event comparable to a TRIGGER EVENT or is in material
breach of its sublicense and fails to cure such material breach within sixty
(60) days of COMPANY's written notice thereof, and (i) such sublicensee is
either (x) responsible for a material amount of NET SALES or (y) primarily
responsible for research and/or development activities relating to any
contemplated PENN LICENSED PRODUCT described in the DEVELOPMENT PLAN and
anticipated to result in commercial SALES having a positive material effect on
NET SALES, and (ii) COMPANY fails to use commercially reasonable efforts to
exercise its termination rights under the relevant sublicense;

5.4.6 If any
AFFILIATE experiences an event comparable to a TRIGGER EVENT and (i) such
AFFILIATE is either (x) responsible for a material amount of NET SALES or (y)
primarily responsible for research and/or development activities relating to any
contemplated PENN LICENSED PRODUCT described in the DEVELOPMENT PLAN and
anticipated to result in commercial SALES having a positive material effect on
NET SALES, and (ii) COMPANY fails to use commercially reasonable efforts to
exercise its termination rights under any applicable agreements between COMPANY
and such AFFILIATE implicating the rights granted to COMPANY under this
AGREEMENT or otherwise deprive such AFFILIATE of any responsibility for the
development or commercialization of PENN LICENSED PRODUCTS; or

5.4.7 If,
without PENN's express prior written consent, COMPANY grants a sublicense to. or
otherwise subsequently conducts material business implicating COMPANY's rights,
duties and obligations under this AGREEMENT with, any Affiliate or sublicensee
whose agreement or commercial relationship with COMPANY was previously
terminated by COMPANY as contemplated in Sections 5.4.5 or 5.4.6 above.

5.5   In the
event of a termination under Section 5.3 above, all duties of PENN and all
rights (but not duties) of COMPANY under this AGREEMENT immediately terminate
without the necessity of any action being taken either by PENN or by COMPANY.
Upon and after any termination of this Agreement, COMPANY, any AFFILIATE, and
any sublicensee shall refrain from further manufacture, sale, marketing,
importation and/or distribution of PENN
LICENSED PRODUCT(s). If,
upon a termination of this agreement by PENN, a sublicensee is not in breach of
its sublicense agreement and did not cause the Trigger Event, than PENN shall
agree to negotiate in good faith with sublicensee a license agreement having
commercially-reasonable terms.

5.6   Upon
termination of this AGREEMENT, COMPANY must, at PENN's request, return to PENN
all CONFIDENTIAL INFORMATION in respect of which COMPANY is RECIPIENT, together
with any data generated by COMPANY during the term of this AGREEMENT which will
facilitate the further development of the Technology licensed to COMPANY
hereunder (the “NEW COMPANY DATA”). Upon termination of this AGREEMENT, COMPANY
agrees to negotiate in good faith a license granting to potential licensees
identified by PENN rights in the NEW COMPANY DATA on commercially reasonable
terms.

Page 17 of
26

5.7   COMPANY's
obligation to pay all monies owed but not yet paid under this AGREEMENT shall
survive termination of this AGREEMENT. In addition, the provisions of Sections
3.4.2, 3.4.3, 3.4.4 and 3.5, Articles 4 - Confidentiality, Article 5 - Term and
Termination, Article 8 - Disclaimer of Warranties; Indemnification, Article 9 -
Use of PENN's Name; and Article 10 - Additional Provisions shall survive such
termination in accordance with their respective terms.

 

5.8   Upon
termination of this AGREEMENT, COMPANY shall cause physical inventories to be
taken immediately of: (a) all completed PENN
LICENSED PRODUCT(s) on
hand under the control of COMPANY, any AFFILIATES, or any sublicensees; and (b)
such PENN
LICENSED PRODUCT(s) as
are in the process of manufacture and component parts thereof as of the date of
termination of this AGREEMENT, which inventories shall be reduced to writing.
COMPANY shall deliver copies of such written inventories, verified by an officer
of COMPANY forthwith to PENN.
PENN shall
have 45
forty-five (45) days after receipt of such verified inventories within which to
challenge the inventory and request an audit. Upon five (5) days written notice
to COMPANY, PENN and its
agents shall be given access during business hours to the premises of COMPANY
and/or AFFILIATES or sublicensees for the purpose of conducting an audit. Upon
the termination of this AGREEMENT, COMPANY shall, at its own expense forthwith
remove and promptly upon PENN’s request, efface or destroy all references to
PENN from all
advertising or other materials used in the promotion of COMPANY’s business or
the business of any AFFILIATE or sublicensee and COMPANY, its AFFILIATES, and
any sublicensee shall not thereafter represent in any manner that it has rights
in or to the PENN
PATENT RIGHTS or
PENN
LICENSED PRODUCT(s).

 

5.9   Notwithstanding
the foregoing, if this AGREEMENT terminates other than pursuant to Section 5.4.1
or 5.4.2, COMPANY shall have a period of six (6) months to sell off its
inventory of PENN
LICENSED PRODUCT(s)
existing on the date of termination of this AGREEMENT and shall pay royalties to
PENN with
respect to such PENN
LICENSED PRODUCT(s)
within thirty (30) days following the expiration of such six-month period (“Sell
Off Right”).

6.
PATENT MAINTENANCE AND REIMBURSEMENT

6.1   Subject
to this Article 6, PENN controls the prosecution and maintenance of PENN PATENT
RIGHTS. COMPANY must reimburse PENN for all documented attorneys fees, expenses,
official fees and other charges incurred after the EFFECTIVE DATE of the option
and incident to the preparation, prosecution maintenance and licensing of PENN
PATENT RIGHTS. COMPANY's obligation to reimburse such costs shall commence as of
the date COMPANY closes an initial [ * ] or greater financing round;
reimbursements shall be paid within thirty (30) days after COMPANY’S receipt of
invoices for such fees, expenses and charges

 

6.2   COMPANY
shall reimburse PENN for all historically accrued patent and licensing expenses,
attorneys fees, official fees and all other charges incident to the preparation,
prosecution and maintenance of the PENN PATENT RIGHTS that were incurred before
the EFFECTIVE DATE of the Option (March 15, 2002) within thirty (30) days after
the date of closing of an initial [ * ] or greater financing round. Such
historically accrued expenses are estimated by PENN at approximately [ * ] but
will not be greater than [ * ].

Page 18 of
26

6.3   Notwithstanding
Section 6.1, COMPANY [ * ]. In that event, PENN shall be the client of the
attorney, and COMPANY may directly manage the prosecution of the PENN PATENT
RIGHTS through a Client and Billing Agreement attached hereto as Attachment 7
(the "CLIENT AND BILLING AGREEMENT");. COMPANY
shall bear all costs of prosecution of the PENN PATENT RIGHTS. PENN shall be
copied on all correspondence related to the prosecution of the PENN PATENT
RIGHTS between COMPANY and the selected attorney, and retains the right to
advise COMPANY regarding patent prosecution. PENN and COMPANY shall in good
faith cooperate to implement the prosecution and maintenance of PENN PATENT
RIGHTS in accordance with the CLIENT AND BILLING AGREEMENT and COMPANY must
promptly pay for all ongoing attorneys fees, expenses, official fees and all
other charges incident to the preparation, prosecution and maintenance of the
PENN PATENT RIGHTS after the EFFECTIVE DATE of this AGREEMENT in accordance with
such CLIENT AND BILLING AGREEMENT. 

6.4   COMPANY
hereby covenants and agrees that it shall in good faith prosecute PENN PATENT
RIGHTS in all countries set forth in Attachment 7 (the “REQUIRED TERRITORIES”);
[ * ]; If COMPANY refuses such expenditures under the CLIENT AND BILLING
AGREEMENT, or does not reimburse PENN for expenses related to PENN PATENT
RIGHTS, COMPANY’S rights in the relevant PENN PATENT RIGHTS granted under
Section 2.1 of this AGREEMENT shall,
thereafter terminate on a patent-by-patent basis. Thereafter, (i) PENN
will, be free,
at its discretion and expense, to either abandon such applications or patents or
to continue such preparation, prosecution and/or maintenance activities; and
(ii) PENN may,, license
such PENN PATENT RIGHTS to any third party upon such terms and conditions as
PENN deems appropriate.

6.5   If COMPANY should
desire to abandon any of the PENN PATENT RIGHTS (whether an already issued
patent or an application therefor) in any countries other than those countries
in the REQUIRED TERRITORIES, COMPANY shall give PENN at least [ * ] advance
written notice of its intention and, upon the written request of the PENN within
said [ * ], shall alternatively consent to termination of the license granted
pursuant to Section 2.1 in respect only of those PENN PATENT RIGHTS COMPANY
desires to abandon. Upon such limited termination of the license, the other
provisions of this Agreement shall be deemed terminated with regard to such PENN
PATENT RIGHTS only and COMPANY shall have no further rights or obligations in
respect of the same or subsequently accrued proceeds thereof; provided, however,
that (i) PENN covenants that it shall not assert such PENN PATENT RIGHTS
(whether by way of infringement or otherwise) against COMPANY, or any AFFILIATES
or sub-licensees of the PENN PATENT RIGHTS without COMPANY's express prior
written consent; and (ii) if any third parties continue to hold rights in such
PENN PATENT RIGHTS under any license or other binding agreement previously
entered into by or under the authority of COMPANY, its AFFILIATES or
sublicensees, then both of COMPANY's and PENN's rights and obligations under
this Agreement and in respect of proceeds from such third party agreements shall
survive such termination, but PENN shall be under no obligation to COMPANY or
any third parties to file, prosecute, maintain, defend or enforce PENN PATENT
RIGHTS in respect of which the license has been terminated pursuant to this
Section 6.5.

Page 19 of
26

6.6   Nothing
in Sections 6.4 or 6.5 above, shall
prevent COMPANY from abandoning or surrendering any of the PENN PATENT RIGHTS,
or from canceling or amending any claim of any of the PENN PATENT RIGHTS,
without giving rise to any rights under Sections 6.4 or 6.5, provided that such
abandonment, surrender, cancellation or amendment is, in COMPANY's sole
reasonable discretion, necessary or appropriate in the ordinary course of the
prosecution, maintenance and enforcement of the PENN PATENT RIGHTS. For the
purposes of Sections 6.4 and 6.5, COMPANY's election not to pursue applications
for patents or other rights in respect of the PENN PATENT RIGHTS in any
countries, territories and regions in which, or in accordance with any treaties,
conventions or other multi-national agreements under which, any applications for
patents or other rights in respect of the PENN PATENT RIGHTS could in good faith
lawfully be applied for or otherwise prosecuted, shall not constitute or be
construed to constitute abandonment of any PENN PATENT RIGHTS.

6.7   COMPANY
may at its sole discretion (i) apply for and obtain such extension, term
restoration or comparable addition to the life of the affected PENN PATENT
RIGHTS and (ii) apply for and obtain such supplemental protection certificates
for the approved product or process covered by the PENN PATENT RIGHTS, all to
the extent the same are available pursuant to the applicable laws and
regulations of the jurisdiction where such regulatory approval is given. Nothing
herein shall be construed to obligate COMPANY to in fact seek extension or
restoration of any PENN PATENT RIGHTS or supplemental protection for any PENN
LICENSED PRODUCTS. Where COMPANY applies for and obtains supplemental protection
or comparable treatment for any PENN LICENSED PRODUCT, then, subject to
continued payment by COMPANY of its royalty obligations under this AGREEMENT,
this AGREEMENT shall not expire pursuant to Section 5.1(a) prior to the date of
termination of such supplemental protection or comparable
treatment.

6.8   Notwithstanding
the other provisions of this Article 6, COMPANY shall in good faith confer with,
and regularly keep PENN apprised of, its patent prosecution, maintenance,
enforcement and defense strategy and plans and shall in good faith consider
PENN's comments regarding such strategy and plans including, without limitation,
the following:

6.8.1 Providing
to PENN, promptly upon PENN's request, copies of any office actions or proposed
responses to office actions affecting PENN PATENT RIGHTS.

6.8.2 Providing
to PENN, promptly upon PENN's request, copies of any written communications
alleging infringement of, or responding to allegations of infringement of, the
PENN PATENT RIGHTS by third parties and any pleadings, motions, briefs or other
substantive papers filed by COMPANY or any third parties or proposed to be filed
by COMPANY, in connection with any litigation, arbitration or regulatory
proceedings (including interference and opposition proceedings).

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7.
INFRINGEMENT AND LITIGATION

7.1   PENN and
COMPANY are responsible for notifying each other promptly of any infringement of
PENN PATENT RIGHTS which may come to their attention. PENN and COMPANY shall
consult one another in a timely manner concerning any appropriate response to
the infringement.

 

7.2   COMPANY
may prosecute such infringement at its own expense. COMPANY must not settle or
compromise any such suit in a manner that imposes any obligations or
restrictions on PENN or grants any rights to the or the PENN PATENT RIGHTS,
without PENN's prior written permission. Financial recoveries from any such
litigation will first be applied to reimburse COMPANY for its litigation
expenditures with additional recoveries being paid to COMPANY, subject to a
royalty due PENN based on the provisions of Article 3. 

7.3   COMPANY's
rights under Section 7.2 are subject to the continuing right of PENN to
intervene at PENN's own expense and join COMPANY in any claim or suit for
infringement of the PENN PATENT RIGHTS. Any consideration received by COMPANY in
settlement of any claim or suit shall be shared between PENN and COMPANY in
proportion with their share of the litigation expenses in such infringement
action.

7.4   Subject
to COMPANY’S obligations under Section 6.7 above, COMPANY shall be free to
determine at its sole discretion when, if at all, and how to assert and
prosecute infringement claims relating to PENN PATENT RIGHTS where such
determinations are based upon bona
fide
strategic issues such as COMPANY’S concerns regarding challenges to the validity
of the PENN PATENT RIGHTS. If COMPANY elects at its sole discretion not to
prosecute or otherwise abate any infringement for non-strategic reasons, COMPANY
shall so notify PENN, and PENN may thereafter prosecute such infringement at its
own expense. In such event, financial recoveries will be entirely retained by
PENN. 

7.5   In any
action to enforce any of the PENN PATENT RIGHTS, either party, at the request
and expense of the other party shall cooperate to the fullest extent reasonably
possible. This provision shall not be construed to require either party to
undertake any activities, including legal discovery, at the request of any third
party except as may be required by lawful process of a court of competent
jurisdiction.

7.6   For so
long as this Agreement is effective, PENN may not itself assert, or authorize
others to assert, claims of infringement of the PENN PATENT RIGHTS against third
parties without COMPANY’S express prior written consent.

8.
DISCLAIMER OF WARRANTIES; INDEMNIFICATION

8.1   THE PENN
PATENT RIGHTS, PENN LICENSED PRODUCTS AND ALL OTHER TECHNOLOGY LICENSED UNDER
THIS AGREEMENT ARE PROVIDED ON AN "AS IS" BASIS AND PENN MAKES NO
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT THERETO. BY WAY
OF EXAMPLE BUT NOT OF LIMITATION, PENN MAKES NO REPRESENTATIONS OR WARRANTIES
(i) OF COMMERCIAL UTILITY; (ii) OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE; OR (iii) THAT THE USE OF THE PENN PATENT RIGHTS, PENN LICENSED PRODUCTS
AND ALL TECHNOLOGY LICENSED UNDER THIS AGREEMENT WILL NOT INFRINGE ANY PATENT,
COPYRIGHT OR TRADEMARK OR OTHER PROPRIETARY RIGHTS OF OTHERS. PENN SHALL NOT BE
LIABLE TO COMPANY, COMPANY'S SUCCESSORS OR ASSIGNS OR ANY THIRD PARTY WITH
RESPECT TO: ANY CLAIM ARISING FROM COMPANY'S USE OF THE PENN PATENT RIGHTS, PENN
LICENSED PRODUCTS AND ALL TECHNOLOGY LICENSED UNDER THIS AGREEMENT OR FROM THE
MANUFACTURE, USE OR SALE OF PENN LICENSED PRODUCTS. NEITHER PARTY SHALL BE
LIABLE TO THE OTHER FOR ANY CLAIM FOR LOSS OF PROFITS, LOSS OR INTERRUPTION OF
BUSINESS, OR FOR INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY KIND
REGARDLESS OF THE CAUSE OF ACTION OR THEORY OF LIABILITY UPON WHICH SUCH CLAIM
IS BASED, AND WHETHER OR NOT THE PARTY AGAINST WHOM SUCH CLAIM IS MADE WAS AWARE
OF THE POSSIBILITY OF SUCH DAMAGES.

Page 21 of
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8.2   COMPANY
must defend, indemnify and hold harmless PENN, its trustees, officers, agents
and employees (individually, an "Indemnified Party", and collectively, the
"Indemnified Parties"), from and against any and all liability, loss, damage,
action, claim or expense suffered or incurred by the Indemnified Parties
(including attorney's fees) (individually, a "Liability", and collectively, the
"Liabilities") that results from or arises out of third-party claims made in
connection with: (a) the development, use, manufacture, promotion, sale or other
disposition of any PENN PATENT RIGHTS or PENN LICENSED PRODUCTS by COMPANY, its
assignees, AFFILIATES, sublicensees, vendors or other third parties; (b) any
breach by COMPANY of this AGREEMENT, as well as any Liabilities resulting from
the enforcement by an Indemnified Party of this Section. Without limiting the
foregoing, COMPANY must defend, indemnify and hold harmless the Indemnified
Parties from and against any Liabilities resulting from:

8.2.1 any
product liability or other claim of any kind made by a third party and related
to the use by a third party of a PENN LICENSED PRODUCT that was manufactured,
sold or otherwise disposed by COMPANY, its assignees, AFFILIATES, sublicensees,
vendors or other third parties;

8.2.2 a
claim by a third party that the PENN PATENT RIGHTS or the design, composition,
manufacture, use, sale or other disposition of any PENN LICENSED PRODUCT
infringes or violates any patent, copyright, trademark or other intellectual
property rights of such third party; and

8.2.3
claims made by third parties (including governmental agencies) in connection
with clinical trials or studies conducted by or on behalf of COMPANY relating to
the PENN PATENT RIGHTS or PENN LICENSED PRODUCTS, including, without limitation,
any claim by or on behalf of a human subject of any such clinical trial or
study.

 

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26

8.3   COMPANY
is not permitted to settle or compromise any claim or action giving rise to
Liabilities in a manner that imposes any restrictions or obligations on PENN or
grants any rights to the PENN PATENT RIGHTS or PENN LICENSED PRODUCTS
without  PENN’s
prior written consent. If COMPANY fails or declines to assume the defense of any
such claim or action within thirty (30) days after notice thereof, PENN may
assume the defense of such claim or action for the account and at the risk of
COMPANY for indemnification, and any Liabilities related thereto shall be
conclusively deemed a liability of the party responsible for indemnification.
The indemnification rights of PENN or any other Indemnified Parties are in
addition to all other rights which such Indemnified Party may have at law or in
equity or otherwise.

8.4   INSURANCE

8.4.1
Within 90 days of the EFFECTIVE DATE of this AGREEMENT, COMPANY must procure and
maintain a policy or policies of comprehensive general liability insurance,
including broad form and contractual liability, in a minimum amount of
$2,000,000 combined single limit per occurrence and in the aggregate as respects
personal injury, bodily injury and property damage arising out of COMPANY's
performance under this AGREEMENT.

8.4.2
COMPANY must, upon commencement of clinical trials involving PENN LICENSED
PRODUCTS, procure and maintain a policy or policies of product liability
insurance in a minimum amount of $3,000,000 combined single limit per occurrence
and in the aggregate as respects bodily injury and property damage arising out
of COMPANY's performance under this AGREEMENT.

8.4.3 The
policy or policies of insurance described in this Section 8.4 [must be issued by
an insurance carrier with an AM Best rating of “A” or better and] must name PENN
as an additional insured with respect to COMPANY's performance of this
AGREEMENT. COMPANY must provide PENN within thirty (30) days of the EFFECTIVE
DATE with certificates evidencing the insurance coverage required herein. Such
certificates must provide that COMPANY's insurance carrier(s) notify PENN in
writing at least 30 days prior to cancellation or material change in
coverage.

8.4.4
PENN may periodically review the adequacy of the minimum limits specified above
and reserves the right to require COMPANY to adjust the liability coverages,
provided such adjustments do not require COMPANY to obtain coverages in excess
of those customarily obtained by entities incurring comparable risks in
comparable industries. The specified minimum insurance amounts do not constitute
a limitation on COMPANY's obligation to indemnify PENN under this
AGREEMENT.

9.
USE OF PENN'S NAME

COMPANY
and its employees and agents must not use and COMPANY must not permit its
AFFILIATES or sublicensees to use PENN's name or any adaptation thereof, or any
PENN seal, logotype, trademark, or service mark, or the name, mark, or logotype
of any PENN representative or organization in any way without the prior written
consent of PENN.

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26

10.
ADDITIONAL PROVISIONS

10.1   Nothing
in this AGREEMENT shall be deemed to establish a relationship of principal and
agent between PENN and COMPANY, nor any of their agents or employees for any
purpose whatsoever, nor shall this AGREEMENT be construed as creating any other
form of legal association or arrangement which would impose liability upon one
party for the act or failure to act of the other party.

10.2   COMPANY
is not permitted to assign this AGREEMENT or any part of it, either directly or
by merger or other operation of law, without the prior written consent of PENN,
which consent shall not be unreasonably withheld. A withholding of PENN’s
consent shall be considered as reasonable in the event that the acquiring party
of the assignee of this license is not reputable or is not capable of developing
the PENN PATENT RIGHTS in the FIELD OF USE. Any prohibited assignment of this
AGREEMENT or the rights hereunder shall be null and void. No assignment relieves
COMPANY of responsibility for the performance of any accrued obligations which
it has prior to such assignment.

10.3   A waiver
by either party of a breach of any provision of this AGREEMENT will only be
valid if express, in writing and signed by an authorized representative of the
waiving party and will not constitute a waiver of any subsequent breach of that
provision or a waiver of any breach of any other provision of this
AGREEMENT.

10.4   Notices,
payments, statements, reports and other communications under this AGREEMENT
shall be in writing and shall be deemed to have been received as of the date
sent if sent by public courier (e.g. Federal Express) or by Express Mail,
receipt requested, and addressed as follows:

	 	
      If
      for PENN:
	
      with
      a copy to:

	 	 	 
	 	
      University
      of Pennsylvania
	
      Office
      of General Counsel

	 	
      Center
      for Technology Transfer
	
      University
      of Pennsylvania

	 	
      [ *
      ]
	 
	 	 	 
	 	
      If
      for COMPANY:
	
      with
      a copy to:

	 	 	 
	 	
      Advaxis,
      Inc.
	
      Pryor
      Cashman Sherman & Flynn

	 	
      250
      West Lancaster Ave., Ste. 100
	
      410
      Park Avenue, 10th Floor

	 	
      Paoli,
      PA 19301
	
      New
      York, NY 10022

	 	
      Attn:
      Mr. James P. Patton
	
      Attn:
      Selig D. Sacks, Esq.

Either
party may change its official address upon written notice to the other
party.

Page 24 of
26

10.5   This
AGREEMENT shall be construed and governed in accordance with the laws of the
Commonwealth of Pennsylvania, without giving effect to conflict of law
provisions. In the event that a party to this AGREEMENT perceives the existence
of a dispute with the other party concerning any right or duty provided for
herein, the parties will, as soon as practicable, confer in an attempt to
resolve the dispute. If the parties are unable to resolve such dispute amicably,
then the parties hereby submit to the exclusive jurisdiction of and venue in the
courts located in the Eastern District of the Commonwealth of Pennsylvania with
respect to any and all disputes concerning the subject of this
AGREEMENT.

10.6   PENN and COMPANY
shall not discriminate against any employee or applicant for employment because
of race, color, sex, sexual or affectional preference, age, religion, national
or ethnic origin, handicap, or because he or she is a disabled veteran or a
veteran of the Vietnam Era.

10.7   COMPANY
must comply with all prevailing laws, rules and regulations that apply to its
activities or obligations under this AGREEMENT. Without limiting the foregoing,
it is understood that this AGREEMENT may be subject to United States laws and
regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities, articles and information, including
the Arms Export Control Act as amended in the Export Administration Act of 1979,
and that the parties’ obligations are contingent upon compliance with applicable
United States export laws and regulations. The transfer of certain technical
data and commodities may require a license from the cognizant agency of the
United States Government and/or written assurances by COMPANY that COMPANY shall
not export data or commodities to certain foreign countries without prior
approval of such agency. PENN neither represents that a license is not required
nor that, if required, it will issue.

10.8   If any
provision of this AGREEMENT shall be
held to be illegal, invalid or unenforceable, then such illegality, invalidity
or unenforceability shall attach only to such provision and shall not in any
manner affect or render illegal, invalid or unenforceable any other provision of
this AGREEMENT, and
this AGREEMENT shall be
carried out as if any such illegal, invalid or unenforceable provision were not
contained herein.

10.9   This
AGREEMENT embodies
the entire agreement of the parties with respect to the matters herein
contained, and supercedes all prior oral or written agreements relating thereto
except to the extent expressly addressed in the STOCK
PURCHASE AGREEMENT or the
STOCKHOLDER’S
AGREEMENT. Any
modification of this AGREEMENT must be in writing and signed by an authorized
representative of each party.

IN
WITNESS WHEREOF, the parties, intending to be legally bound, have caused this
AGREEMENT to be executed by their duly authorized representatives.

 

	THE TRUSTEES OF THE 
UNIVERSITY
      OF PENNSYLVANIA	 	 	ADVAXIS,
      INC.
	 	 	 	 
	 	 	 	 
	/s/ Louis P.
      Berneman	 	 	/s/ J. Todd
      Derbin
	
      

    	 	 	
      

    
	
      TYPED NAME: Louis P.
      Berneman
TITLE:  
      Managing Director

      Center
      for Technology Transfer 
	 	 	TYPED
      NAME:  J.
      Todd Derbin 
TITLE:

	 	 	 	 
	DATE:	 	 	DATE:

Page 25 of
26

ATTACHMENT
1 - List of Intellectual Property

[
* ]

ATTACHMENT 2
- Required Territories 

[
* ]

Page 26 of
26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]