Document:

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                                                                   Exhibit 10.1

                            Manufacturing Contract

This Manufacturing Agreement ("Agreement") is entered into this 27/th/ day of
August 1998 by and between Airspan Communications Limited having its place of
business at 5 New Square Feltham, Middlesex. TW14 8HA England. ("Customer") and
Flextronics International Sweden AB, Rombvagen 4, Verko, Karlskrona. Sweden
("Flextronics").

Customer has created a market for Customer's Products and is solely responsible
for the sales and marketing of the Products.  Flextronics has developed
processes and practices for manufacturing products for many different electronic
applications and at Customer's request desires to manufacture Customer's
Products in accordance with Customer's specifications.  Customer acknowledges
that Flextronics' expertise is manufacturing and that Flextronics'
responsibility related to the Customer's Products is limited to this extent.
The parties agree as follows:

1.0  WORK, LICENSE

Flextronics agrees to perform the work (hereinafter "Work") pursuant to purchase
orders or changes thereto issued by Customer and accepted by Flextronics.  Work
shall mean to procure components, materials and other supplies and to
manufacture, test, and assemble products (hereinafter "Products") pursuant to
detailed written specifications for each such Product which are provided by
Customer and accepted by Flextronics and to deliver such Products to a Customer
designated location.  For each Product or revision thereof, written
specifications shall include but are not limited to bill of materials,
schematics, assembly drawings, test specifications, current revision number, and
approved vendor list (hereinafter "Specifications") as attached hereto.

Flextronics is granted by Customer a non-exclusive license during the term of
this Agreement to use all of Customer's patents, trade secrets and other
intellectual property required to perform Flextronics' obligations under this
Agreement.

Flextronics shall retain all intellectual property rights in manufacturing
processes developed by Flextronics but shall grant to Airspan a license on a
royalty-free basis without limit of time for all improvements made to the
Product by Flextronics.

2.0  FORECASTS, ORDERS, MATERIAL PROCUREMENT

2.1  Forecast.  Customer shall provide Flextronics, on a two weekly basis, a
rolling six (6) month Product Forecast (including a call-off schedule).

2.2  Purchase Orders.  The first four (4) months in the latest issued Product
Forecast issued by Customer, as described in Section 2.1, shall be considered as
a Purchase Order subject to Section 3.2.  Each Purchase Order shall reference
this Agreement, and the applicable written Specifications as described in
Section 1.0. Purchase Orders shall not to be unreasonably withheld be binding on
Flextronics until accepted by Flextronics at its discretion.  Flextronics shall
notify Customer of rejection of any purchase order within five (5) working days
of receipt of such order.

Customer may use its standard Purchase Order form to release items, quantities,
prices, schedules, change notices, specifications, or other notice provided for
hereunder.  The parties agree that the terms and conditions contained in this
Agreement shall prevail over any terms and conditions of any purchase order,
acknowledgment form or other instrument.

2.3  Material Procurement.  Customer's accepted Purchase Orders will constitute
authorization for Flextronics to procure, using standard purchasing practices,
the components, materials and supplies necessary for the manufacture of Products
("Inventory") covered by such purchase orders.

In addition, Customer authorizes Flextronics to purchase, in amounts beyond the
amount necessary to fill accepted purchase orders, the components, materials,
and supplies:  i)  with lead times greater than ninety (90) days at the time the
order is placed ("Long Lead Time Components") plus 30 days to account for the
order, shipment, receipt and manufacturing time and,  ii) purchased in
quantities above the required amount in order to achieve price targets
("Economic Order Inventory"), and iii) purchased in excess of requirements
because of minimum lot sizes available from manufacturers ("Minimum Order
Inventory").  Together these are called "Special Inventory".

Flextronics may purchase Long Lead Time Components sufficient to meet all
deliveries under the purchase orders and forecast in effect at the time the
order with the supplier is placed, and may reasonably purchase Minimum Order
Inventory

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even if greater than the amount necessary to meet purchase orders and
forecast.  Economic Order Inventory shall be purchased by Flextronics only with
the prior approval of Customer.  Flextronics may, from time to time, hold Long
Lead Time Components and finished goods in inventory to increase customer
flexibility.  The components and quantities of all such inventory  will be
documented in a separate letter and signed by both Flextronics and Customer.

Customer expects diligent stock handling and control procedures including cycle
counting where necessary to maintain stock accuracy and hence reduce liability
to customer.

3.0  SHIPMENTS, SCHEDULE CHANGE, CANCELLATION

3.1  Shipments.  All Products delivered pursuant to the terms of this Agreement
shall be suitably packed for shipment in accordance with Customer's
Specifications, marked for shipment to Customer's destination specified in the
applicable purchase order and delivered to a carrier or forwarding agent.
Shipment will be F.C.A. at which time risk of loss and title will pass to
Customer.  All freight, insurance and other shipping expenses, as well as any
special packing expenses not included in the original price quotation for the
Products will be paid by Customer.

3.2  Quantity Increases and Shipment Schedule Changes.  For any accepted
purchase order, Customer may (i) increase the quantity of Products or (ii)
reschedule the quantity of Products and their shipment date as provided in the
table below:

<TABLE>
     <S>                                               <C>
     1) Product in manufacture                         Change only by agreement
     2) Product in preparation                         Reschedule with customer covering all
                                                       extraordinary costs by joint agreement
     3) Product on schedule and no work in progress    Reschedule within the bounds of component supply
</TABLE>

If there are extra costs, as demonstrated in Appendix 2 to meet any schedule
change Flextronics will inform the Customer for its approval in advance of the
change. Changes in quantity or shipment date causing excess inventory in more
than thirty (30) days may be subject to an inventory carrying charge.
Furthermore, any changes in quantity and shipment date, within 30 days from
originally scheduled, may not subsequently be rescheduled within the next 30 day
period to thereby avoid charges for excess inventory, without the prior approval
of Flextronics. The inventory carrying charge shall be 1.25% per month for
inventory and Special Inventory procured to support the original schedule.
Excess inventory, as described in this Section, which is subject to carrying
charge, shall, upon request from Customer, be reasonably provable by
Flextronics. Excess inventory held by Flextronics for more than six (6) months
shall be purchased by Customer or disposed according to Section 3.3. .
Allowable quantity changes are subject to material disposition.  Flextronics
will use reasonable commercial efforts to meet quantity changes.

In order to meet the Customer's flexibility in demands, the Customer may request
and identify Special Inventory to be procured and held by Flextronics in excess
of inventory required to meet the Product Forecast. The inventory carrying
charge for such Special Inventory shall be 1.25% per month.

3.3  Cancellation.  Customer may not cancel any portion of Product quantity of
an accepted purchase order without Flextronics' prior written approval, not to
be unreasonably withheld.  If the parties agree upon a cancellation, Customer
will pay Flextronics for Products, Inventory, and Special Inventory affected by
the cancellation as follows:  (i) 100% of the contract price for all finished
Products in Flextronics' possession, (ii) 106% of the cost of all Inventory and
Special Inventory in Flextronics' possession excluding unrepairable production
reject and not returnable to the vendor or usable for other customers, whether
in raw form or work in process, less the salvage value thereof, (iii) 105% of
the cancellation cost of all Inventory and Special Inventory on order and not
cancelable, (iv) any previously approved, between Customer and Flextronics,
vendor cancellation charges incurred with respect to Inventory and Special
Inventory accepted for cancellation or return by the vendor, and (v) expenses
incurred by Flextronics related to labor and equipment specifically put in place
to support Customer's purchase orders.

Flextronics will use reasonable commercial efforts to return unused Inventory
and Special Inventory and to cancel pending orders for such inventory, and to
otherwise mitigate the amounts payable by Customer.

If the forecast for any period is less than the previous forecast supplied over
the same period, that amount will be considered canceled and Customer will be
responsible for any Special Inventory purchased or ordered by Flextronics to
support the forecast.

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The customer may substitute a similar purchase order for the cancellation of an
existing purchase order by agreement of both parties.

3.4  Effect of Exchange Rates on material pricing. Variation in component
pricing due to currency fluctuations will be managed in good faith by Airspan
and Flextronics.

3.5  Backlog Recovery.  Flextronics undertakes to provide suitable and timely
resources to accelerate the existing schedule to recover a backlog or lost time
position.  Reasonable costs for such action will be allocated as follows:

     a)  Customer default and request    Costs to be covered by the customer
     b)  Flextronics default             Costs to be covered by Flextronics

4.0  ENGINEERING CHANGES

Customer may request, in writing, that Flextronics incorporate engineering
changes into the Product.  Such request will include a description of the
proposed engineering change sufficient to permit Flextronics to evaluate its
feasibility and cost.  Flextronics' evaluation shall be in writing and shall
state the costs and time of implementation and the impact on the delivery
schedule and pricing of the Product.  If the change does not involve any company
outside of Flextronics Sweden then Flextronics will respond to the customer
within 3 working days.  Flextronics will not be obligated to proceed with the
engineering change until the parties have agreed upon the changes to the
Product's Specifications, delivery schedule and pricing and upon the reasonable
implementation costs to be borne by the Customer including, without limitation,
the cost of Inventory and Special Inventory on-hand and on-order that becomes
obsolete.  When the customer agrees to accept such costs detailed at that time,
Flextronics will implement the change immediately or in accordance to the
proposed schedule.

5.0  TOOLING, NON-RECURRING EXPENSES, SOFTWARE

Flextronics shall provide non-Product specific tooling at its expense.  Customer
shall pay for or obtain and consign to Flextronics any Product specific tooling
and other reasonably necessary non-recurring expenses, to be set forth in
Flextronics' quotation.  All software which Customer provides to Flextronics is
and shall remain the property of Customer.  Customer grants Flextronics a
license to copy, modify and use such software required to perform Flextronics'
obligations under this Agreement.  All software developed by Flextronics to
support the process tooling or otherwise shall be and remain the property of
Flextronics.

6.0  PRODUCT ACCEPTANCE AND WARRANTIES

6.1  Product Acceptance.  The Products delivered by Flextronics will be
inspected and tested as required by Customer within thirty (30) days of receipt.
If Products are found to be defective in material or workmanship, Customer has
the right to reject such Products during said period.  Products not rejected
during said period will be deemed accepted.  Customer may return defective
Products, freight collect, after obtaining a return material authorization
number, not to be unreasonably withheld, from Flextronics to be displayed on the
shipping container and completing a failure report.  Rejected Products will be
repaired or replaced at Flextronics' option and returned freight pre-paid.  If
the Product is source inspected by Customer prior to shipment, Customer will
inspect goods within five (5) days of request date.

6.2  Express Warranty.  Flextronics warrants that the Products will conform to
Customer's applicable Specifications and will be free from defects in
workmanship for a period of one hundred and eighty  (180) days from the date of
shipment.  Materials are warranted to the same extent that the original
manufacturer warrants the materials.  This express warranty does not apply to
(a) materials consigned by Customer to Flextronics; (b) defects resulting from
Customer's design of the Products; or (c) Product that has been abused, damaged,
altered or misused by any person or entity after title passes to Customer.  With
respect to first articles, prototypes, pre-production units, test units or other
similar Products, Flextronics makes no representations or warranties whatsoever.
Notwithstanding anything else in this Agreement, Flextronics assumes no
liability for or obligation related to the performance, accuracy,
specifications, failure to meet specifications or defects of or due to tooling,
designs or instructions produced or supplied by Customer and Customer shall be
liable for costs or expenses incurred by Flextronics related thereto.  Upon any
failure of a Product to comply with the above warranty, Flextronics' sole
obligation, and Customer's sole remedy, is for Flextronics, at its option, to
promptly repair or replace such unit and return it to Customer freight collect.
Customer shall return Products covered by the warranty freight pre-paid after
completing a failure report and obtaining a return material authorization number
from Flextronics to be displayed on the shipping container.

FLEXTRONICS MAKES NO OTHER WARRANTIES OR CONDITIONS ON THE PRODUCTS, EXPRESS,
IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS AGREEMENT OR COMMUNICATION
WITH CUSTOMER,

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AND FLEXTRONICS SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OR CONDITION OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

6.3  Production Yields. It is Flextronics intention to provide the customer with
a quality production service. Subject to agreement and a design for
manufacturability review Flextronics will trigger an investigation should solder
joint quality ppm figures exceed 150ppm.

7.0  PAYMENT AND DELIVERY TERMS, ADDITIONAL COSTS AND PRICE CHANGES

7.1  Price, Payment and Delivery Terms.  The price for Products to be
manufactured will be set from time to time through purchase orders issued by
Customer and accepted by Flextronics. All prices quoted are exclusive of local
excise, sales, use and similar taxes, and any duties, and Customer shall be
responsible for all such items.  Payment for any Products, services or other
costs to be paid by Customer hereunder is due thirty (30) days net from the date
of invoice and shall be made in SEK.  If Customer is late with payments,
Flextronics may require prepayment or delay shipments or suspend work until
assurances of payment satisfactory to Flextronics are received. Customer shall
open, no later than 10 days after the signing of this document, a Bank
Guarantee, or such other guarantee acceptable to Flextronics, in an amount of
one and a quarter (1.25) million USD as separately detailed by and in favor of
Flextronics upon which this contract comes into force.  The Delivery Terms are
Free Carrier (FCA) Flextronics factory in Karlskrona, Sweden, according to
INCOTERMS 1990.

Pricing will be calculated using the general model shown in Appendix 1,
demonstrating the negotiated 5% reduction in overall costs.

7.2  Additional Costs.  Customer is responsible for (a) any expediting charges
reasonably necessary because of a change in Customer's requirements which
charges are preapproved, (b) any overtime or downtime charges incurred as a
result of delays in the normal production or interruption in the workflow
process and caused by:  (1)  Customer's change in the Specifications; or (2)
Customer's failure to provide sufficient quantities or a reasonable quality
level of consigned materials where applicable to sustain the production
schedule.  Customer caused delays as a result of consigned inventory will result
in a special charge to the Customer of 1.25% of the sales price of the Product
for each month, or part thereof, delayed.

7.3  Price Changes.   The price of Products to Customer may be increased by
Flextronics if the parties agree to the increase after good faith negotiation.

7.4  Cost Reductions.  Flextronics agrees to seek ways to reduce the cost of
manufacturing Products by methods such as elimination of components, obtaining
alternate sources of materials,redefinition of Specifications, and improved
assembly or test methods.  Upon implementation of such ways which have been
initiated by Flextronics, Flextronics will receive one hundred (100)  percent of
the demonstrated cost reduction for a period of three (3) months and thereafter
fifty (50) percent of the demonstrated cost reduction for a further six (6)
months.  Customer will receive one hundred percent of the demonstrated cost
reduction upon implementation of such ways initiated by Customer.

8.0  TERM AND TERMINATION

8.1  Term.  The term of this Agreement shall commence on the date hereof above
and shall continue thereafter until terminated as provided in Section 8.2 or
10.9.

8.2  Termination. This Agreement may be terminated by either party for any
     reason, with or without cause, upon one hundred and twenty (120) days
     written notice to the other party. Termination of this Agreement shall not
     affect the obligations of either party which exist as of the date of
     termination. Upon termination for any reason whatsoever, Customer shall be
     responsible for the finished Products, Inventory, and Special Inventory in
     existence at the date of termination in the same manner as for
     cancellations as set forth in section 3.3. Notwithstanding termination of
     this Agreement, Sections 6.2, 9.0, and 10.1 shall survive said termination.

8.3  Insolvency In the event that one of the parties becomes insolvent, is
     adjudicated bankrupt voluntarily or involuntarily files a petition of
     bankruptcy , or becomes financially incapable of performing its obligations
     in accordance with the terms of this agreement , and such involuntary
     proceedings, insolvency or incapacity is not revoked ,stayed or discharged
     within a thirty (30) day period , this agreement can be terminated without
     notice.

8.4  Material Breach. In the event of a material breach of this agreement by
     either party the aggrieved party shall by written notice to the other
     party, give said party a thirty (30) day period in which to cure such
     material breach. In

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      the event such material breach has not been cured within the thirty (30)
      day period the aggrieved party can terminated this agreement without
      notice.

9.0   LIABILITY LIMITATION

9.1   Patents, Copyrights, Trade Secrets, Other Proprietary Rights.  Customer
shall defend, indemnify and hold harmless Flextronics from all claims, costs,
damages, judgments and attorney's fees resulting from or arising out of any
alleged and/or actual infringement or other violation of any patents, patent
rights, trademarks, trademark rights, trade names, trade name rights, registered
design rights, unregistered design rights, copyrights, trade secrets,
proprietary rights and processes or other such rights in connection with the
performance by Flextronics of its obligations under this Agreement. This
excludes infringements not attributable to Airspan. Flextronics shall promptly
notify Customer in writing of the initiation of any such claims.

THE FOREGOING STATES THE ENTIRE LIABILITY OF THE PARTIES TO EACH OTHER
CONCERNING INFRINGEMENT OF PATENT, COPYRIGHT, TRADE SECRET OR OTHER INTELLECTUAL
PROPERTY RIGHTS.

9.2   Product Liability.  Customer agrees that, if notified promptly in writing
and given sole control of the defense and all related settlement negotiations,
it will defend Flextronics from any claim or action and will hold Flextronics
harmless from any loss, damage or injury, including death, which arises from any
alleged defect in design, workmanship or materials of any Products.  Customer
shall, if requested by Flextronics, name Flextronics as an additional insured
under Customer's product liability policies for any Products.

9.3   Limitation of Liability

9.3.1 Each party's maximum liability under this Agreement shall be limited to
the sum of $5M in respect of physical damage to or loss of tangible property,
and $5M in respect of all other events or any one event or series of connected
events.

9.3.2 Each party acknowledges that this is a commercial contract and that,
except as expressly set forth in this Agreement, neither party shall be liable
to the other party or any person or entity claiming through or under that other
party, directly or indirectly, for any loss or damage (whether direct, indirect,
general, special or consequential) sustained for any cause or reason whatsoever
relating to or arising out of the Product.

9.3.3 For the avoidance of doubt the "loss or damage" referred to in clause
above includes:

               (i)  any:

                      (a) loss of profits;
                      (b) loss of sales;
                      (c) loss of turnover;
                      (d) loss of bargain; or
                      (e) loss of opportunity; or

               (ii) any indirect or consequential loss or damage howsoever
                    caused.

9.3.4 Each party ("the Indemnifying Party") shall indemnify and hold harmless
and defend the other party ("the Indemnified Party") and its respective
officers, directors, employees, representatives and agents from and against all
claims, demands, actions, suits, proceedings, writs, judgements, orders and
decrees brought, made or rendered against them or any of them and all damages,
losses and expenses suffered or incurred by them or any of them howsoever
arising out of or related to the breach by the Indemnifying Party of any of the
terms of this Agreement.][The Indemnified Party shall notify the Indemnifying
Party forthwith of any claim, demand, action, suit, proceeding, writ, judgement,
order or decree falling within the scope of this Section 9.3 and shall permit
the Indemnifying Party sole conduct of the same and shall provide reasonable
assistance in relation thereto, subject to the payment by the Indemnifying Party
of the Indemnified Party's reasonable costs and expenses.]

10.0  MISCELLANEOUS

10.1  Confidentiality.   Confidentiality is attached to all information
exchanged between the parties except anything that is already in the public
domain at the time of disclosure, or which subsequently becomes part of the
public domain

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otherwise than by breach of this agreement. The party which receives such
Confidential Information agrees not to disclose it directly or indirectly to any
third party without the prior written consent of the disclosing party.
Confidential Information disclosed pursuant to this Agreement shall be
maintained confidential for a period of three (3) years after the disclosure
thereof.

10.2  Entire Agreement.  This Agreement constitutes the entire agreement between
the Parties with respect to the transactions contemplated hereby and supersedes
all prior agreements and understandings between the parties relating to such
transactions.  Customer shall hold the existence and terms of this Agreement
confidential, unless it obtains Flextronics' express written consent otherwise.
In all respects, this Agreement shall govern, and any other documents including,
without limitation, preprinted terms and conditions on Customer's purchase
orders shall be of no effect.

10.3  Amendments.  This Agreement may be amended only by written consent of both
parties.

10.4  Independent Contractor.  Neither party shall, for any purpose, be deemed
to be an agent, partner, or part of a joint venture of the other party and the
relationship between the parties shall only be that of independent contractors.
Neither party shall have any right or authority to assume or create any
obligations or to make any representations or warranties on behalf of any other
party, whether express or implied, or to bind the other party in any respect
whatsoever.

10.5  Expenses.  In the event a dispute between the parties hereunder with
respect to this Agreement must be resolved by litigation or other proceeding or
a party must engage an attorney to enforce its right hereunder, the prevailing
party shall be entitled to receive reimbursement for all associated reasonable
costs and expenses (including, without limitation, attorneys fees) from the
other party.

Security Interest.  Flextronics retains title of all products delivered to
Customer until the purchase price and all other charges payable to Flextronics
hereunder have been received in full.

10.7  Governing Law.  This Agreement shall be governed by and construed under
the rules of the laws International Chamber of Commerce in the Hague.  All
disputes arising in connection with this agreement shall be finally settled
under the Rules of Conciliation and Arbitration of the International Chamber of
Commerce in the Netherlands by three arbitrators appointed in accordance with
the said rules.  The language of all arbitration's proceedings under this
agreement shall be English.

Neither party shall have the right to assign or otherwise transfer its rights or
obligations under this Agreement except with the prior written consent of the
other party, not to be unreasonably withheld.

10.9  Force Majeure. In the event that either party is prevented from performing
or is unable to perform any of its obligations under this Agreement (other than
a payment obligation) due to any Act of God, fire, casualty, flood, earthquake,
war, strike, lockout, epidemic, destruction of production facilities, riot,
insurrection, material unavailability, or any other cause beyond the reasonable
control of the party invoking this section, and if such party shall have used
its best efforts to mitigate its effects, such party shall give prompt written
notice to the other party, its performance shall be excused, and the time for
the performance shall be extended for the period of delay or inability to
perform due to such occurrences. Regardless of the excuse of Force Majeure, if
such party is not able to perform within ninety (90) days after such event, the
other party may terminate the Agreement. Termination of this Agreement shall not
affect the obligations of either party which exist as of the date of
termination.

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10.10 Notices.  All notices made or required to be given will be in writing and
will be mailed, postage prepaid via certified letter to the addresses shown
below

      Airspan Communications Ltd.      Flextronics International Sweden AB
      5 New Square                     Rombvagen 4
      Feltham                          Verko
      Middlesex TW14 8HA               Karlskrona
      England                          Sweden

      Attention:__________________     Attention:__________________

ACCEPTED AND AGREED TO:

CUSTOMER:                          FLEXTRONICS INTERNATIONAL SWEDEN AB:

__________________________         ___________________________________

By:_______________________         By:________________________________

Title:____________________         Title:_____________________________

                                                                          7 of 7<PAGE>

                                                            EXHIBIT 10.2

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

                    CONTRACT FOR THE SALE AND PURCHASE OF
                  EQUIPMENT AND ANCILLARY FACILITIES FOR THE
                   ESTABLISHMENT OF A WIRELESS ACCESS SYSTEM

                        AZ COMMUNICATIONS NETWORK, INC.

                                   - and -

                         AIRSPAN COMMUNICATIONS LIMITED

                                October 25, 1999

                             CONTRACT NO. CN99-002
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
          <S>                          <C>
          SECTION 1                    DEFINITIONS

          SECTION 2                    SCOPE OF THE CONTRACT

          SECTION 3                    PRICE

          SECTION 4                    TERMS OF PAYMENT

          SECTION 5                    DELIVERY

          SECTION 6                    MARKING AND LABELING

          SECTION 7                    PACKING AND SHIPMENT

          SECTION 8                    TRANSFER OF RISK AND TITLE

          SECTION 9                    INSPECTION, TESTING AND
                                       ACCEPTANCE

          SECTION 10                   WARRANTY

          SECTION 11                   FOR EXTENSION OF WARRANTY

          SECTION 12                   INSURANCE

          SECTION 13                   PATENTS

          SECTION 14                   TRADEMARKS

          SECTION 15                   CONFIDENTIALITY AND USE
                                       OF INFORMATION

          SECTION 16                   LIQUIDATED DAMAGES

          SECTION 17                   LIMITATION OF LIABILITY

          SECTION 18                   FORCE MAJEURE

          SECTION 19                   CHANGES

          SECTION 20                   APPLICABLE DOCUMENTS
</TABLE>

                                       2
<PAGE>

<TABLE>
          <S>                           <C>
          SECTION 21                    ORDER OF PRECEDENCE

          SECTION 22                    SEVERABILITY

          SECTION 23                    SUCCESSION AND ASSIGNMENT

          SECTION 24                    TERMINATION

          SECTION 25                    ARBITRATION

          SECTION 26                    INTERPRETATION

          SECTION 27                    ADDRESSES

          SECTION 28                    EXECUTION IN COUNTERPARTS

          SECTION 29                    EFFECTIVITY OF THE CONTRACT

                                ***
</TABLE>

                                       3
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This Contract For The Sale and Purchase Of Equipment And Ancillary Facilities
For The Establishment of a Wireless Access System is entered into this 25/th/
day of October 1999, between the following parties:

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

                                   - a n d -

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

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

WHEREAS, ACL has represented itself to be a qualified and reliable supplier of
certain equipment, including spares, tools and test equipment and documentation
for the establishment of Wireless Access System Network and has offered to
supply the same to AZCOM.

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

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

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

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

                                       4
<PAGE>

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

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

     "Contract"                 refers to this Contract For The Sale and
                                Purchase Of Equipment And Ancillary Facilities
                                For The Establishment of a Wireless Access
                                System together with its annexes and the other
                                documents specifically considered its integral
                                parts.

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

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

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

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

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

     "Network"                  refers to the combination of Systems and
                                Equipment together with the required
                                infrastructure to provide the functionalities
                                and coverage defined in the Specifications.

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

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

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

                                       5
<PAGE>

     "Services Contract"        refers to Contract No. CN99-002/S between AZCOM
                                and ACL dated October 25, 1999, for the
                                performance of services relating to the
                                installation, testing and commissioning
                                supervision, technical assistance, and other
                                incidental services including in-land
                                transportation, insurance and warehousing of the
                                Equipment.

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

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

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

                                       6
<PAGE>

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

     2.1  ACL undertakes to deliver the Equipment listed in Annex A and takes
          full responsibility of ensuring that the Equipment, when installed,
          tested and commissioned in accordance with the terms and conditions of
          the Services Contract, shall meet in all respects the Specifications.

     2.2  The Parties agree that the enumeration or listing of the Equipment in
          Annex A shall suffice the Year 2 requirements of AZCOM, i.e. 20 base
                                    ------
          stations, 322 customer terminals, the network management system and
          the required functionalities as described in the Specifications. It is
          further agreed that Annex A is not restrictive or conclusive.
          Accordingly, if the Equipment installed fail to meet the
          Specifications on account of the non-inclusion of certain parts or
          materials, or some of the listed parts or materials are inadequate,
          ACL shall deliver or replace the required parts or materials without
          additional cost or expense on the part of AZCOM.

     2.3  In consideration for the performance by ACL of its obligations under
          this Contract, AZCOM shall pay ACL the Price in accordance with the
          terms of payment described in Section 4 hereof.

3    PRICE
     -----

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

                                      [*]

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

     3.3  The Price covers all taxes, customs duties, license fees, brokerage
          fees, forwarding fees and other charges which may be imposed on the
          Equipment by authorities other than the Republic of the Philippines as
          well as by authorities of other countries where the Equipment shall
          originate.  Should ACL be liable for any income tax in the Philippines
          arising out of the Project or this Contract, the same shall be for
          ACL's account.

     3.4  In the event the full amounts provided for the cost of the Equipment
          and Spares are not utilized ACL shall return the proportionate amount
          representing the value of Equipment and Spares which were not utilized
          in a manner to be described in a separate letter by AZCOM.

4    TERMS OF PAYMENT
     ----------------

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

_______________

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

                                       7
<PAGE>

     (a)  The downpayment, which is equivalent to ten percent (10%) of the
          Price, shall be paid within thirty one (31) calendar days from the
          signing of this Contract and upon receipt of a correct invoice by
          AZCOM from ACL. ACL is not obligated to ship the Equipment prior to
          its receipt of the downpayment.

     (b)  Payment on Shipment

          Twenty percent (20%) of the price of the shipped Equipment shall be
          paid by AZCOM within thirty (30) calendar days from receipt of AZCOM
          of appropriate shipping documentation and correct invoice from ACL.

     (c)  Progress Payments

          c.1 Twenty percent (20%) of the price of the shipped Equipment shall
              be paid by AZCOM to ACL within thirty (30) days after the System
              Acceptance of the eighth (8/th/) base station or after one hundred
              and twenty (120) days from the arrival of the Equipment at the
              warehouse of ACL in the Philippines, which ever comes first.

          c.2 Twenty percent (20%) of the price of the shipped Equipment shall
              be paid by AZCOM to ACL within thirty (30) days after the System
              Acceptance of the thirteenth (13/th/) base station or after two
              hundred and forty (240) days from the arrival of the Equipment at
              the warehouse of ACL in the Philippines, which ever comes first.

          c.3 Twenty percent (20%) of the price of the shipped Equipment shall
              be paid by AZCOM to ACL within thirty (30) days after the System
              Acceptance of the seventeenth (17/th/) base station or after three
              hundred and sixty five (365) days from the arrival of the
              Equipment at the warehouse of ACL in the Philippines, which ever
              comes first.

              To secure the above progress payments, a letter of credit shall be
              issued by AZCOM in favor of ACL. Any and all costs to be incurred
              for the processing and issuance of the letter of credit shall be
              for the account of ACL to the extent of 1.6% of the face value of
              the letter of credit. In case the costs for such letter of credit
              shall exceed 1.6% as above-mentioned, the Parties hereto agree
              that they shall negotiate in good faith as to who shall bear the
              excess cost thereof and to what extent.

              Receipt by AZCOM of correct invoice from ACL is required for all
              program payment.

     (d)  The balance of ten percent (10%) of the price of the shipped Equipment
          shall be paid five hundred forty (540) days from the arrival of the
          Equipment at the warehouse of ACL in the Philippines and the receipt
          of correct invoice by AZCOM from ACL. Notwithstanding the foregoing,
          AZCOM shall not be obliged to make the payment of the balance of ten
          percent (10%) until all base stations have undergone System
          Acceptance.

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

                                       8
<PAGE>

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

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

5    DELIVERY
     --------

     5.1  ACL shall deliver the Equipment on CIP Manila Port basis.  Unless
          otherwise provided for in this Contract, the delivery shall conform to
          the latest provisions of INCOTERMS.

     5.2  In the delivery of the Equipment, ACL shall faithfully comply with the
          provisions of the Global Comprehensive Import Supervision Scheme of
          the Bangko Sentral ng Pilipinas.

     5.3  ACL shall submit all the required documents to SGS (at the country of
          origin) at the time of inspection.

     5.4  ACL shall send to AZCOM a copy of SGS inspection report duly signed by
          the representatives of SGS and ACL.

6    MARKING AND LABELING
     --------------------

     Except as the Parties may otherwise decide, all labels, identification
     markers, handbooks, drawings and other documents required to be submitted
     by ACL under this Contract shall be in the English language.

7    PACKING AND SHIPMENT
     --------------------

     The packing and shipment of all the items and components of the Equipment
     shall conform to the following conditions:

     7.1  The packing shall be in accordance with the standard prevailing
          practice for the export packing of each item, with shipping and
          delivery marks made at the instructions of AZCOM.

     7.2  All the items to be supplied by ACL shall be brand new.  Under no
          circumstances will second hand or used items be supplied by ACL.

     7.3  The items or components, which do not meet the Specifications or are
          below acceptance standards shall be rejected by AZCOM. The items or
          components rejected by AZCOM, including those, which were damaged due
          to inadequate or improper packing, shall be repaired or replaced by
          ACL, at the discretion of, and at no cost to AZCOM. The expenses of
          transportation of the damaged and replacement parts, including the
          customs duties and other charges or fees that may be assessed for the
          importation of the replacement parts, shall be borne by ACL.

                                       9
<PAGE>

     7.4  All items or components erroneously delivered to AZCOM must be claimed
          by ACL from AZCOM within ten (10) from receipt of notice by ACL from
          AZCOM.

     7.5  AZCOM shall not be liable for any damage to or deterioration of any
          part of the Equipment, which was erroneously delivered by ACL.

     7.6  ACL shall notify AZCOM via fax of the estimated arrival date of the
          vessel of any particular shipment and shall send to AZCOM copies of
          the relevant documents enumerated in Section 7 hereof.

     7.7  ACL, with the assistance of AZCOM, shall obtain the necessary customs
          clearance for the Equipment and exert its best efforts to have the
          period for customs clearance promptly accomplished after the arrival
          of the Equipment at the Manila Port.

8    TRANSFER OF RISK AND TITLE
     --------------------------

     8.1  Notwithstanding any contrary provision in this Contract, title over
          the Equipment shall pass to AZCOM upon arrival of Equipment at
          designated Philippine Port and payment of AZCOM to ACL of 30%
          (downpayment + payment on shipment) of the price of the shipped
          Equipment as defined in 4.1 (a) and (b).

     8.2  The risk of loss or damage to the Equipment shall be assumed by AZCOM
          only after the System Acceptance.

9    INSPECTION, TESTING AND ACCEPTANCE
     ----------------------------------

     9.1  Acceptance

          9.1.1  The Acceptance Test Program shall be prepared by ACL and
               submitted to AZCOM for its comments at least two (2) weeks before
               the conduct of the acceptance testing. AZCOM shall give its
               comments or signify its concurrence to the program within one (1)
               week from the date of its submission by ACL.  The Acceptance Test
               Program shall not be implemented without the prior written
               approval of AZCOM.

          9.1.2  System Acceptance

               (a)  A System shall be considered complete and ready for Site
                    Acceptance Test when all the items and components of the
                    Equipment comply with the Specifications and is, in ACL's
                    judgment, in working order.

               (b)  ACL shall inform AZCOM in writing of the completion and
                    readiness for acceptance testing of a System at least five
                    (5) working days in advance of the scheduled testing.

                    The System Acceptance Test shall be conducted by AZCOM under
                    the supervision of ACL within a period of seven (7) calendar
                    days for each System and shall be conducted in accordance
                    with the test protocol. ACL

                                       10
<PAGE>

                    shall immediately correct any defect for which it may be
                    responsible. Upon successful Site Acceptance Test, an Site
                    Acceptance Certificate shall be issued by AZCOM within five
                    (5) working days. In case the Network is put into commercial
                    operation by AZCOM before the Initial Acceptance without
                    ACL's written approval, the Site acceptance certificate
                    shall be deemed to have been issued by AZCOM at the time of
                    commencement of commercial operation.

        9.1.3  Performance Monitoring

               During the Warranty Period the Network shall, at AZCOM
               discretion, be tested to ensure that the System Performance is in
               line with the System Specifications.

               These tests shall be as follows

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

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

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

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

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

               The Long Term BER Test shall be:

               .  168 hour BER. A pass shall be when the average BER is better
                  that 10/-7/

               The Output Power Test shall be:

               .  CT Output Power is within 1.5dB of commissioned level.
(Commissioned values are defined within the Acceptance Test Protocol Result)

                                       11
<PAGE>

          9.1.5     In case the System fails to meet the acceptable performance
                    monitoring standards within two (2) years from the date of
                    Acceptance, the Parties shall confer within thirty (30) days
                    from the date such failure becomes apparent to discuss the
                    possible solutions to the problem which solutions shall
                    include, but not be limited to, the correction of any
                    defect, the repair or replacement of parts, the replacement
                    of the equipment with another which complies with the
                    required performance standards or the payment by ACL to
                    AZCOM of all costs necessary to enable the System to comply
                    with acceptable performance standards. Notwithstanding the
                    foregoing and in case the Parties reach no agreement within
                    sixty (60) days from their initial meeting, ACL shall
                    replace, at no cost to AZCOM, the equipment concerned with
                    another equipment which complies with the performance
                    standards. If at the end of the above-mentioned sixty (60)
                    days period no replacement equipment is available or the
                    replacement equipment is available or the replacement
                    equipment still does not comply with the performance
                    standards, then ACL shall pay AZCOM all the cost necessary
                    for AZCOM to undertake measures, on its own, to make the
                    System comply with acceptable performance standards.

          9.1.6     The Spares, tools and test equipment shall be subject to
                    acceptance testing by AZCOM under the supervision of ACL
                    before their delivery at AZCOM's warehouse. AZCOM shall also
                    inspect the Spares, tools and test equipment delivered, and,
                    upon its determination that the same comply with the
                    Specifications, issue an acceptance certificate within two
                    (2) weeks after acceptance testing.

10   WARRANTY
     --------

     10.1 ACL warrants that:

          10.1.1    Each item of the Equipment delivered shall be free from any
                    defect in design, material and workmanship during the
                    Warranty Period or any extensions thereof.

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

     10.2 AZCOM agrees to promptly advise ACL, in writing, of any defect in the
          Equipment or parts thereof as soon as they come to the attention of
          AZCOM. ACL shall examine and remove the faults as soon as possible but
          not to exceed two (2) weeks from the date the defects are made known
          to ACL. During the Warranty Period, AZCOM shall have the right to
          reject any part of the Equipment that is found defective due to faulty
          design, inferior materials or inadequate workmanship, or found to be
          not in accordance with the Specifications. ACL shall promptly replace
          or repair the defective part at no cost to AZCOM. The Parties shall
          mutually agree on whether the defective part(s) of the Equipment shall
          be replaced or repaired by ACL. The replacement of the defective part
          shall likewise be factory tested and approved for use in the
          manufacturer's factory.

                                       12
<PAGE>

     10.3 All costs, Philippine customs duties, taxes and other local
          impositions and charges which may be incurred in replacing the
          imperfect, defective or unsuitable parts of the Equipment shall be for
          the account of ACL. Replaced parts shall become ACL's property and
          must be claimed from AZCOM within ten (10) days from the installation
          of the replacement part. The obligations of ACL under Sections 10.1
          and 10.2 hereof shall not cover ordinary wear and tear of the
          Equipment or other defects traceable to circumstances beyond ACL's
          control, such as unsuitable operating means, chemical, electro-
          mechanical or electrical influences and damages, or were otherwise
          caused by the unnecessary interference of AZCOM or any unauthorized
          third party.

     10.4 After the System Acceptance, the liability described in the
          immediately preceding paragraph shall not cover consumable items, such
          as lamps and fuses, except in cases of proven "batch" failure of the
          said items.

     10.5 Warranty Period for spares, tools, test equipment and subscriber
          terminals delivered in accordance with Article 9.1.2 (d) above shall
          start from date of Acceptance certificate.

11   BOND FOR EXTENSION OF WARRANTY

     11.1 In the event that the Warranty Period of the equipment is extended due
          to failure of the Equipment to satisfy the requirements of performance
          monitoring as described in Annex B, ACL shall file a warranty bond in
          favor of AZCOM in an amount equivalent to 10% of the price of the
          affected equipment. The bond shall remain effective until the
          requirements of system performance monitoring is satisfied, otherwise,
          term of Section 9.1.3 shall apply.

     11.2 The said warranty bond shall be denominated on US Dollars, in the form
          of a letter of credit, and must be obtained only from banks or bonding
          companies acceptable to AZCOM.

12   INSURANCE
     ---------

     ACL shall, at its expense, obtain insurance coverage for the Equipment,
     which shall be valid and effective until the System Acceptance of each
     System. Upon request by AZCOM, ACL shall provide AZCOM a copy of the
     insurance policy prior to the initial shipment of the Equipment.

13   PATENTS, TRADEMARKS AND OTHER INTELLECTUAL PROPERTY RIGHTS
     ----------------------------------------------------------

     13.1 ACL shall exert all efforts to ensure that the Equipment will not
          infringe any pending or existing patents, trademarks and other
          intellectual property rights under which a third party may claim
          damages from AZCOM with respect to the use of the Equipment.

     13.2 In case such claims or actions are brought against AZCOM, ACL shall,
          at its expense, defend AZCOM and/or any of its directors, officers or
          employees from any complaint for infringement of patents, trademarks
          and other intellectual property rights. In the event such third party
          secures a favorable judgment for the payment of royalties or damages,
          ACL shall pay such royalties or damages for and on behalf of AZCOM or
          its directors, officers or employees. Additionally, ACL undertakes to
          either alter the Equipment in such a way that it will no longer
          infringe the patent, trademarks and other intellectual property rights
          of

                                       13
<PAGE>

          such third party, or replace the Equipment with another equipment, of
          an equal or greater functionality, which will not infringe the
          aforesaid patent, trademarks and other intellectual property rights,
          or procure for AZCOM the right to use the Equipment at no cost to
          AZCOM. Any such alteration or replacement shall be made only after
          prior written approval of AZCOM.

     13.3 ACL shall not be responsible for infringement of patent, trademarks
          and other intellectual property rights unless ACL has been notified in
          writing by AZCOM without delay of such claim.

     13.4 AZCOM undertakes to furnish ACL whatever information is available to
          it to assist ACL in defending such proceedings and shall not, save
          insofar as it may be necessary to comply with any applicable law or
          government regulation, enter into any Contract with third parties or
          take any legal action thereon without the prior consent of ACL.

     13.5 AZCOM shall not contest the validity of any patent, trademarks and
          other intellectual property rights owned or authorized to be used by
          ACL nor lend support to any third party contesting such validity.
          Furthermore, AZCOM shall not make any admission, which might be
          prejudicial to any claim or action from such third party except in
          compliance with the law, court order or any government rules and
          regulations.

14   USE OF ACL TRADEMARKS
     ---------------------

     AZCOM shall not, without ACL's written permission, use in advertising,
     publicity, or similar actions any of ACL's tradename, trademark, trade
     device, service mark, symbol, code or any abbreviation, contraction or
     simulation thereof nor shall AZCOM claim any ownership thereof. However,
     AZCOM is not prohibited from representing that the Equipment was obtained
     from ACL.

15   CONFIDENTIALITY AND USE OF INFORMATION
     --------------------------------------

     15.1 All business and technical information and data including all software
          provided by either Party and related documentation, in whatever form
          provided, recorded or unrecorded (hereinafter collectively referred to
          as "Information"), which the Parties may furnish or have furnished
          each other in anticipation of this Contract shall:

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

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

                                       14
<PAGE>

16   LIQUIDATED DAMAGES
     ------------------

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

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

     16.3 Where the right to claim liquidated damages exists, the liquidated
          damages payable per affected System shall be as follows:

          .    For the sites to be completed in November     : 16%
          .    For the sites to be completed in December     : 16%
          .    For the sites to be completed in January      : 16%
          .    For the sites to be completed in February     : 10%

          In addition, ACL must replace the affected System with a part of an
          equal or greater functionality.

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

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

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

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

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

17   LIMITATION OF LIABILITY
     -----------------------

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

                                       15
<PAGE>

18   FORCE MAJEURE
     -------------

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

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

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

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

     18.5 The amendment of the Schedule pursuant to Section 18.4 shall not give
          ACL the right to seek or demand an adjustment or modification of the
          Price.

19   CHANGES
     -------

     ACL may, after prior approval of AZCOM, alter or modify the technology of
     the Equipment, provided that the alteration or modification is of an equal
     or greater functionality to the original. In case an increase or decrease
     in the Price results as a consequence of any alteration or modification of
     the Equipment, the appropriate adjustment of the Price, and where
     necessary, the Schedule, or both, shall be undertaken by the Parties.

20   APPLICABLE DOCUMENTS
     --------------------

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

     Annex A   -    Equipment List and Price Schedule

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

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

                                       16
<PAGE>

21   ORDER OF PRECEDENCE
     -------------------

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

22   SEVERABILITY
     ------------

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

23   SUCCESSION AND ASSIGNMENT
     -------------------------

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

24   TERMINATION
     -----------

     24.1 If either Party violates any provision of this Contract and if such
          default or violation continues for sixty (60) days after receipt of
          the Party in default of a written notice from the aggrieved Party, the
          aggrieved Party may terminate this Contract for any breach hereof by
          written notice to the other Party at least thirty (30) days prior to
          the intended date of termination.

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

     24.3 In the case of default on the part of AZCOM, AZCOM shall pay ACL the
          value of delivered Equipment.

25   ARBITRATION
     -----------

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

     25.2 If such dispute or difference is not amicably settled within sixty
          (60) calendar days from its occurrence, the matter shall be settled
          through arbitration by a panel of three (3) arbitrators, one to be
          named by each Party and the third arbitrator shall be chosen by the
          two earlier designated arbitrators. In case they fail to select a
          third arbitrator within fifteen (15)

                                       17
<PAGE>

          calendar days from the date they commenced the discussion of the said
          selection, the third arbitrator shall be appointed by the chairpersons
          of the National Bar Associations of the countries of the Parties. No
          one shall be nominated or act as an arbitrator who is in any way
          financially interested in this Contract or in the business affairs of
          any of the parties.

     25.3 If any Party is dissatisfied with the decision of the arbitrators, the
          Party concerned shall, within ten (10) calendar days from receipt of
          the decision, notify the arbitrators that it disputes the same and the
          matter shall thereupon be settled under the Rules of Conciliation and
          Arbitration of the International Chamber of Commerce. The arbitration
          proceedings shall be conducted in Geneva, Switzerland in the English
          Language. The resulting award shall be final and binding on the
          parties.

26   INTERPRETATION
     --------------

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

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

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

27        ADDRESSES
          ---------

     27.1 AZCOM and ACL specify their respective addresses as follows:

          For AZCOM:

          AZCOM CORPORATION
          8/F DPC Place, 2322 Chino Roces Avenue
          Makati City, Philippines

          Attention:  Felizardo P. dela Merced

                                       18
<PAGE>

          For ACL:

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

          Attention:  Henrik Smith-Petersen

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

28   EXECUTION IN COUNTERPARTS
     -------------------------

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

29   EFFECTIVITY OF THE CONTRACT
     ---------------------------

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

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

AZ COMMUNICATIONS                   AIRSPAN COMMUNICATIONS LIMITED
NETWORK INCORPORATED

By:                                  By:

________________________             ____________________________

                         Witnessed By:

________________________             ____________________________

                                       19

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