FORM OF SUBSCRIBER UNIT PURCHASE AGREEMENT FOR NEXTEL TELECOMUNCAOES LTDA] SUBSCRIBER UNIT PURCHASE AGREEMENT FOR NEXTEL TELECOMUNCAOES LTDA

Exhibit 10.3

[FORM OF SUBSCRIBER UNIT PURCHASE AGREEMENT FOR NEXTEL TELECOMUNCAOES LTDA]

SUBSCRIBER UNIT PURCHASE AGREEMENT
FOR NEXTEL TELECOMUNCAOES LTDA

     This Agreement is entered into between Motorola Industrial LTDA, by and through its iDEN Subscriber Group, having a place of business at Xxxxxxx XX-000, XX 000, 0-X 00000-000, Xxxxxxxxxx, Xxx Paulo, Brazil (hereinafter “Seller” or “MOTOROLA”) and Nextel Telecomunicaoes LTDA , a company formed under the laws of Brazil, with a place of business at Xx. Xxxxx Xxxxxx Xxxxxx, 000 — Bloco D — 7th Andar, CENESP Xxxxx Xxxxx- Xx. Sao Xxxx SP 05805-000 Sao Paulo Brazil (hereinafter, together with any wholly-owned subsidiary previously accepted by the Seller, collectively known as “Buyer”).

     This agreement applies only for sales of Motorola iDEN subscriber products for distribution within Brazil (“Area”). Buyer agrees to purchase and Seller agrees to sell selected Motorola iDEN subscriber products manufactured in Seller’s facilities in Jaguariuna, Brazil, (hereinafter “Products”) during a term beginning on the date of the last signature hereto (“Effective Date”), and ending with 60 days written notice by either party (“Term”), under the terms and conditions set forth in this Agreement. Buyer may purchase products manufactured at Seller’s other facilities under terms and conditions acceptable to both parties at the time such purchases are desired.

     PURCHASE ORDERS. All orders by Buyer shall be only upon the terms and conditions of this Agreement. Buyer must stipulate in the purchase order its desire for thirty (30) day terms or one hundred eighty (180) day deferred payment terms. The only effect of any terms and conditions in Buyer’s purchase orders or elsewhere shall be to request the payment terms and the time and number of units to be delivered, subject to Seller’s acceptance, but they shall not change, alter or add to the terms and conditions of this Agreement in any other way. Except as provided below, Seller’s invoice shall also not change the terms and conditions of this Agreement. Cancellation charges, which shall include all costs incurred or committed for, may apply for any cancelled order. Seller shall use its reasonable best efforts, including shipment to other Nextel properties, to mitigate any costs incurred as a result of the Buyer’s cancellation of an order within the non-cancelable period. Purchase orders are non-cancelable fifteen (15) days or less before the requested ship date.

     PRICING. Contract prices for Products require firm and prosecutable orders thirty (30) days prior to requested ship date. Prices applicable to Products sold pursuant to this Agreement (“Prices”) are those negotiated from time to time by Nextel Communications, Inc. and Motorola, Inc. In order for Prices to be applicable, the purchase orders submitted to Seller must reference this Agreement.

     PAYMENT TERMS AND CONDITIONS. Seller will invoice Buyer for the Products on or about the date of shipment thereof. Payment of each invoiced amount is due within 30 days of the date of the invoice; provided, however, that Buyer may defer payment of invoiced amounts not to exceed an amount as set forth in a separate letter from the Seller, for a period of 180 days from the date the seller discounts the receivables (each a “Maturity Date” and collectively the “Maturity Dates”). Interest shall accrue on each deferred payment commencing on the day such applicable receivable(s) was sold to (but not including) the Maturity Date of such invoice at a rate selected by the Buyer per the terms and conditions of the Receivables Purchase Agreement entered into by the Seller, Buyer and Banco BBA. Seller shall, upon 30 days prior notice to Buyer, have the discretion at any time to increase or decrease the interest rate applicable to any deferred payment, provided that Seller may not adjust the interest rate applicable to any deferred payment owing with respect to any invoice already submitted by Seller to Buyer. All payments shall be free and clear of all taxes, withholdings, charges, fees, costs or duties applicable to this transaction.

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     Failure by the Buyer to consent to a deferred payment receivable being sold to Banco BBA will automatically make that receivable due within 30 days of the date of shipment.

     In the event Buyer receives Products with defects that would prevent shipment to Buyer’s customers or in the event of other related disputes (“Disputed Items”), Buyer must notify Seller within 45 days from the date of receipt of such products (“Notification Date”). Upon such notification, Seller, at Buyer’s discretion, may repair such products, replace such products, refund the price paid for such products, or implement another solution acceptable to both parties. In the event of no resolution within 45 days of the Notification Date, the Seller agrees to reimburse Buyer for all interest accrued, at the same interest rate applied by Seller to deferred payments, and paid to Seller related to the invoices subject to the Disputed Items.

     The foregoing notwithstanding, in the event that (i) any interest payment is not made when due, (ii) any deferred payment hereunder is not made on a Maturity Date, or (iii) an event occurs which has a material adverse effect on the business, operations, condition (financial or otherwise), or profits of the Buyer, the Seller may (a) demand payment of cash on delivery, or otherwise modify the payment terms hereunder with respect to any future shipments of Products pursuant to this Agreement, (b) reduce Buyer’s credit limit, (c) require collateral security for any future deferred payments, (d) suspend all shipments under this Agreement, and/or (e) accelerate payment of all amounts outstanding pursuant to this Agreement and exercise all available remedies under applicable law.

     If any payment of any invoiced amount is not received by Seller within thirty (30) days of the date of invoice, or if appropriate, on or before the Maturity Dates of such invoiced amounts, Buyer shall pay, in addition to the interest described herein, a rate of CDI (as quoted by Banco BBA or the Seller) plus five (5) percent per annum calculated on the due but unpaid invoiced amounts until Seller receives invoiced amount in full. Each payment of any invoiced amounts, interest and/or any other sum required or permitted to be made hereunder shall be made free and clear of any and all taxes, withholdings, charges, fees, costs or duties applicable to this transaction, exclusive however, of any taxes measured by Seller’s net income or taxes based on Seller’s gross receipts or based on Seller’s franchise.

     Buyer acknowledges that Seller is procuring insurance with respect to the deferred payments under this Agreement and agrees to provide all documents and such other information available to it as is reasonably required in connection with obtaining such insurance.

     FORECASTS. During the term of this Agreement, Buyer shall provide Seller, on a quarterly basis not less than thirty (30) days prior to the start of the next quarter, a continuous usage forecast for the next two (2) calendar quarters (the “Quarterly Forecast”) to assist Seller in maintaining an orderly production flow for the purpose of Buyer’s delivery requirements. Buyer shall state in the Quarterly Forecast the Product model numbers and projected purchase volume by units for each month of the quarter. The Quarterly Forecast does not constitute a commitment by the Buyer; however, Buyer’s failure to provide such information may be considered cause by Seller for excusable delivery delay.

     DELIVERY AND TITLE. All deliveries are FCA Seller’s plant, Jaguariuna Brazil. Each such delivery will be separately invoiced. DELIVERY DATES ARE BEST ESTIMATES ONLY. Title to the Products will pass to Buyer at the Seller’s plant, Jaguariuna Brazil.

     FORCE MAJEURE. Neither party shall be liable for any delay or failure to perform due to any cause beyond its reasonable control. Causes include, but are not limited to strikes, acts of God, acts of the other

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party, interruptions of transportation or inability to obtain necessary labor, materials or facilities, or default of any supplier, or delays in regulatory authorization or license grant. The delivery schedule shall be considered extended by a period of time equal to the time lost because of any excusable delay. In the event either party is unable to wholly or partially perform for a period greater than forty-five (45) days because of any cause beyond its reasonable control, either party may terminate any delayed order without any liability.

     LICENSE DISCLAIMER. Nothing contained herein shall be deemed to grant either directly or by implication, estoppel, or otherwise, any license under any patents, copyrights, trademarks or trade secrets of SELLER.

     TAXES. Except for the amount, if any, of specific taxes stated in the Agreement, Prices are exclusive of any amount for Federal, State and/or Local excise, sales, use, property, retailer’s, occupation or any other assessment in the nature of taxes however designated, on the Products and/or services provided under this Agreement. If any such excluded tax, exclusive however, of any taxes measured by Seller’s net income or taxes based on Seller’s gross receipts or based on Seller’s franchise, is determined to be applicable to this transaction or to the extent Seller is required to pay or bear the burden thereof, one hundred percent (100%) thereof shall be added to the Prices and paid by Buyer subject to prior substantiation by Seller. Personal property taxes assessed on the Products after the date title transfers under this paragraph shall be the responsibility of Buyer. In the event Buyer claims exemption from sales, use or other such taxes under this Agreement, Buyer shall hold Seller harmless of any subsequent assessments levied by a proper taxing authority for such taxes, including interest, penalties, and late charges.

     Upon Seller’s request, Buyer shall produce sufficient evidence within thirty (30) days of such request to prove that Buyer has fulfilled its obligation relating to all taxes, duties, and fees. If any such taxes, duties, or fees are determined to be applicable to this transaction and notwithstanding Buyer’s responsibility, Seller is required to pay or bear the burden thereof, then Prices shall be increased by the amount of such taxes and any interest or penalty, and Buyer shall pay to Seller the full amount of any such increase no later than thirty (30) days after receipt of an invoice. Customs clearance, or related costs pertaining to import of the Products are the responsibility of Buyer. No such costs have been included in Seller’s Prices.

     TECHNICAL ASSISTANCE. Seller’s warranty shall not be enlarged, and no obligation or liability shall arise out of Seller’s rendering of technical advice, facilities or service in connection with Buyer’s purchase of the Products furnished.

     LIMITATION OF LIABILITY. EITHER PARTY’S TOTAL LIABILITY, WHETHER FOR BREACH OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, IS LIMITED TO THE PRICE OF THE PARTICULAR PRODUCTS SOLD HEREUNDER WITH RESPECT TO WHICH LOSSES OR DAMAGES ARE CLAIMED. BUYER’S SOLE REMEDY IS TO REQUEST SELLER AT SELLER’S OPTION TO EITHER REFUND THE PURCHASE PRICE, REPAIR OR REPLACE PRODUCT (S) THAT ARE NOT AS WARRANTED. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY LOSS OF USE, LOSS OF TIME, INCONVENIENCE, COMMERCIAL LOSS, LOST PROFITS OR SAVINGS OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES TO THE FULL EXTENT SUCH MAY BE DISCLAIMED BY LAW.

     LOGOS AND TRADEMARKS. In order that Seller may protect its trademarks, trade names, corporate slogans, corporate logo, goodwill and product designations, Buyer, without the express written consent of

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Seller, shall have no right to use any such marks, names, slogans or designations of Seller in the sales, lease or advertising of any products or on any product container, component part, business forms, sales, advertising and promotional materials or other business supplies or material, whether in writing, orally or otherwise. Buyer agrees to provide Motorola with advertising material containing any Motorola marks for approval before such marks are used. Motorola agrees to review Buyer’s advertising material in a reasonable time and to not unreasonably withhold or delay approval thereof. To minimize the impact of this review on the Buyer, Motorola will provide Buyer with guidelines on the use of Motorola logos.

     Compliance with these guidelines shall serve to relieve Buyer from having to submit advertisements for prior approval.

     PARTY RELATIONSHIP. This Agreement does not create any agency, joint venture or partnership between Buyer and Seller. Neither party shall impose or create any obligation or responsibility, express or implied, or make any promises, representations or warranties on behalf of the other party, other than as expressly provided herein.

     WAIVER. The failure of either party to insist in any one or more instances, upon the performance of any of the terms or conditions herein or to exercise any right hereunder shall not be construed as a waiver or relinquishment of the future performance of any such terms or conditions or the future exercise of such right but the obligation of the other party with respect to such future performance shall continue in full force and effect.

     DEFAULT. Notwithstanding anything to the contrary hereunder, in the event that either party shall be in breach or default of any of the terms or conditions of this Agreement and such breach or default shall continue for a period of thirty (30) days after the giving of written notice by the non-defaulting party, then subject to the other terms and conditions of this Agreement, the non-defaulting party, in addition to other rights and remedies it may have in law or equity, shall have the right to immediately cancel this Agreement without any charge or liability whatsoever.

     DISPUTE RESOLUTION. The parties agree that any claims or disputes will be submitted to non-binding mediation prior to initiation of any formal legal process. Costs of mediation will be shared equally.

     WARRANTY. The warranty document supplied with the Product at the time of shipping shall govern the warranty coverage provided under this Agreement.

     GENERAL. This Agreement constitutes the entire and final expression of agreement between the parties pertaining to the subject matter hereof and supersedes all other communications, oral or written, between the parties. No alterations or modifications of this Agreement shall be binding upon either Buyer or Seller unless made in writing and signed by an authorized representative of each. If any term or condition of this Agreement shall to any extent be held by a court or other tribunal to be invalid, void or unenforceable, then that term or condition shall be inoperative and void insofar as it is in conflict with law, but the remaining rights and obligations of the parties shall be construed and enforced as if this Agreement did not contain the particular term or condition held to be invalid, void or unenforceable. Buyer shall make no assignment of this Agreement or of any right granted herewith without the prior written consent of SELLER. Any

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assignment of this Agreement is null and void. The laws of the State of Illinois of the United States shall govern this Agreement.

     Unless this Agreement is superseded by a new agreement, or otherwise terminated pursuant to the terms contained herein, this Agreement will continue in effect beyond its Initial Term until terminated by either party upon thirty (30) days prior written notice.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives effective as of the 2 day of July 2001.

		SELLER:				BUYER:
		MOTOROLA INDUSTRIAL, LTDA				NEXTEL TELECOMUNICAOES, LTDA
By:				By:
		Signature				Signature
Printed Name: XXXXX XXXXXX				Printed Name:
Title:				Title:
Date:				Date:

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