NORTEL NETWORKS LTD
EX-10.13
<DOCUMENT>
<TYPE>EX-10.13
<SEQUENCE>11
<FILENAME>o32374exv10w13.htm
<DESCRIPTION>EX-10.13
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w13</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">






<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><U><B>EXHIBIT 10.13</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="55%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>CANADA</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(CLASS ACTION)</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>PROVINCE OF QUEBEC</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SUPERIOR COURT</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>DISTRICT OF MONTREAL</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>PRESIDING: THE HONOURABLE MADAM</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>JUSTICE MICHELE MONAST, JSC</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>NO.: 500-06-000126-017</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ASSOCIATION DE PROTECTION DES</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>EPARGNANTS ET INVESTISSEURS DU</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>QUEBEC (A.P.E.I.Q.)</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Petitioner</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ANDRE DUSSAULT</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Designated person</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">v.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>CORPORATION NORTEL NETWORKS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Respondent</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>FONDS D&#146;AIDE AUX RECOURS</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>COLLECTIFS</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Mis en cause</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ORDER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>THIS MOTION </B>made by the Petitioner for a Judgment authorizing the bringing of the class action
for the purpose of settlement pursuant to the Stipulation and Agreement of Settlement (the
&#147;Settlement Agreement&#148;) entered into between the Petitioner and the Respondent was heard this day.
</DIV>
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">&nbsp;

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">-2-
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>ON READING </B>the materials filed, including the Settlement Agreement (defined herein), and on
hearing the submissions of counsel for the Petitioner and counsel for the Respondent:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>1. THIS COURT ORDERS AND DECLARES </B>that for the purposes of this Order the following definitions
apply and are incorporated into this Order:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>British Columbia Action</B>&#148; means the proceeding in the Supreme Court of British
Columbia, <I>Jeffery et al. v. Nortel Networks Corporation et al.</I>, Court File No.
50151590, Vancouver Registry;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>British Columbia Class</B>&#148; means all persons and entities, except <B>Excluded
Persons </B>who, while resident in British Columbia at the time, purchased Nortel common
stock or call options on Nortel common stock or wrote (sold)&nbsp;put options on Nortel
common stock during the <B>Class&nbsp;Period</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>British Columbia Court</B>&#148; means the Supreme Court of British Columbia;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Claims Administrator</B>&#148; means the entity approved by this Court pursuant to
paragraph 11 to administer the <B>Settlement</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Class&nbsp;Members</B>&#148; means members of the British Columbia Class, the Ontario
National Class, the Quebec Class and the U.S. Global Class;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Class&nbsp;Period</B>&#148; means the period of time between October&nbsp;24, 2000 through
February&nbsp;15, 2001, inclusive;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Courts</B>&#148; means the <B>Ontario Court</B>, the <B>British Columbia Court</B>, the <B>Quebec Court</B>
and the <B>U.S. Court</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Defendant</B>&#148; means the Respondent, Corporation Nortel Networks;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Escrow Agents</B>&#148; has the meaning set forth in the <B>Stipulation</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(j)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Excluded Persons</B>&#148; means Nortel and the <B>Individuals</B>, members of any of the
<B>Individuals&#146; </B>immediate families, any entity in which Nortel or any of the <B>Individuals</B>
has a controlling interest or is a parent or subsidiary of or is controlled by Nortel,
and the officers, directors, affiliates, legal representatives, heirs, predecessors,
successors or assigns of any of Nortel and the <B>Individuals</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(k)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Gross Cash Settlement Fund</B>&#148; has the meaning set forth in the <B>Stipulation</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(l)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Gross Settlement Shares</B>&#148; means 314,333,875 shares of common stock of Nortel to
be issued by Nortel, pursuant to the <B>Settlement</B>, as may be adjusted in accordance with
paragraph 4(d) of the <B>Stipulation</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(m)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Individuals</B>&#148; means Clarence Chandran, Frank Dunn and John Andrew Roth;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(n)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Nortel</B>&#148; means the Respondent, Corporation Nortel Networks;</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-3-

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(o)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Nortel I Actions</B>&#148; means the Ontario National Action, the Quebec Action, the
British Columbia Action and the U.S. Action;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(p)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Nortel I Defendants</B>&#148; means the Defendant and Clarence Chandran;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(q)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Notice</B>&#148; means the global notice to the classes in the <B>Nortel I Actions</B>
substantially in the form attached as Schedule &#147;B&#148; to this Order, as approved in
paragraph 13 of this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(r)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Notice Plan</B>&#148; means the plan for the publication and dissemination of the
<B>Notice</B>, <B>Publication Notice </B>and <B>Proof of Claim </B>by the <B>Claims Administrator</B>, attached as
Schedule &#147;D&#148; to this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(s)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Ontario Court</B>&#148; means the Ontario Superior Court of Justice;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(t)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Ontario National Action</B>&#148; means the proceeding in the Ontario Superior Court of
Justice, <I>Frohlinger v. Nortel Networks Corporation et al.</I>, Court File No.&nbsp;02-CL-4605;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(u)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Ontario National Class</B>&#148; means all persons and entities, except <B>Excluded
Persons </B>and except members of the <B>British Columbia Class </B>and the <B>Quebec Class</B>, who,
while resident in Canada at the time, purchased Nortel common stock or call options on
Nortel common stock or wrote (sold)&nbsp;put options on Nortel common stock during the Class
Period;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Proof of Claim</B>&#148; means the form substantially in the form attached as Schedule
&#147;C&#148; to this Order, as approved in paragraph 14 of this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(w)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Publication Notice&#148; means the summary notice of certification and proposed
settlement, and of the hearing of the Settlement Approval Motion, substantially in the
form attached as Schedule &#147;E&#148; to this Order (or a French version thereof in the case of
the French magazines and newspapers contemplated by the Notice Plan), as approved in
paragraph 19 of this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(x)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Action</B>&#148; means this proceeding;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(y)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Class</B>&#148; means all persons, except <B>Excluded Persons </B>who, while resident
in Quebec at the time, purchased Nortel common stock or call options on Nortel common
stock or wrote (sold)&nbsp;put options on Nortel common stock during the <B>Class&nbsp;Period</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(z)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Class&nbsp;Counsel</B>&#148; means Belleau Lapointe, S.A., and Unterberg, Labelle,
Lebeau S.E.N.C.;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(aa)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Class&nbsp;Counsel Fees</B>&#148; means the fees, disbursements, costs, GST, and
other applicable taxes or charges of <B>Quebec Class&nbsp;Counsel</B>;</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-4-

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(bb)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Class&nbsp;Member</B>&#148; means a member of the <B>Quebec Class </B>who does not opt out
of the <B>Quebec Class </B>in the manner set forth in this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(cc)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Quebec Court</B>&#148; means the Superior Court of Quebec;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(dd)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Released Parties</B>&#148; means any and all of the <B>Nortel I Defendants</B>, their past or
present subsidiaries, parents, principals, affiliates, general or limited partners or
partnerships, successors and predecessors, heirs, assigns, officers, directors, agents,
employees, attorneys, advisors, investment advisors, investment bankers, underwriters,
insurers, co-insurers, re-insurers, attorneys, accountants, auditors, consultants,
administrators, executors, trustees, personal representatives, immediate family members
and any person, firm, trust, partnership, corporation, officer, director or other
individual or entity in which any <B>Nortel I Defendant </B>has a controlling interest or
which is related to or affiliated with any of the <B>Nortel I Defendants</B>, and the legal
representatives, heirs, executors, administrators, trustees, successors in interest or
assigns of the <B>Nortel I Defendants</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ee)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Representative Plaintiffs</B>&#148; means, collectively, the representative or Iead
plaintiffs in each of the <B>Nortel I Actions</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ff)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Settled Claims</B>&#148; means any and all claims, debts, demands, rights or causes of
action, suits, matters, and issues or liabilities whatsoever (including, but not
limited to, any claims for damages, interest, attorneys&#146; fees, expert or consulting
fees, and any other costs, expenses or liability whatsoever), whether based on United
States or Canadian federal, state, provincial, local, statutory or common law or any
other law, rule or regulation, whether fixed or contingent, accrued or unaccrued,
liquidated or unliquidated, at law or in equity, matured or un-matured, whether class
or individual in nature, including both known claims and <B>Unknown Claims</B>, (i)&nbsp;that have
been asserted in any of the <B>Nortel I Actions </B>against any of the Released Parties, or
(ii)&nbsp;that could have been asserted in any forum by the <B>Class&nbsp;Members </B>in the <B>Nortel I
Actions</B>, or any of them, against any of the <B>Released Parties</B>, that arise out of or are
based upon the allegations, transactions, facts, matters or occurrences,
representations or omissions involved, set forth, or referred to in the <B>Nortel I
Actions </B>and that relate to the purchase of Nortel common stock or call options or the
sale of Nortel put options during the Class&nbsp;Period or (iii)&nbsp;any oppression or other
claims under the <I>Canada Business Corporations Act</I>, R.S.C. 1985, c. C-44, as amended,
that arise out of or are based upon the allegations, transactions, facts, matters or
occurrences, representations or omissions, set forth or referred to in the <B>Nortel I
Actions. Settled Claims </B>does not mean or include claims, if any, against the Released
Parties arising under the United States <I>Employee Retirement Income Security Act of
1974</I>, as amended, 29 U.S.C. &#167; 1001, et seq. (&#147;ERISA&#148;) that are not common to all Class
Members and which ERISA claims are the subject of an action pending before the Judicial
Panel on Multidistrict Litigation, denominated <I>In re Nortel Networks&#146; Securities and
&#147;ERISA&#146; Litigation</I>, MDL Docket No.&nbsp;1537. <B>Settled Claims </B>further does not include: (a)
the action in <I>Rohac et al v. Nortel Networks&#146; et al</I>, Ontario Superior Court of Justice,
Court File No.&nbsp;04-CV-3268; and (b)&nbsp;the application brought in</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-5-

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%"><I>Indiana Electrical Workers Pension Trust Fund MEW and Laborers Local 100 and 397
Pension Fund v. Nortel Networks Corporation</I>, Ontario Superior Court of Justice,
Court File No.&nbsp;49059, for leave pursuant to the <I>Canada Business Corporations Act </I>to
commence a representative action in the name of and on behalf of Nortel against
certain of the <B>Released Parties </B>and others;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(gg)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Settlement Agreement</B>&#148; means the Settlement Agreement and Confirmation of
Stipulation and Agreement of Settlement, including the <B>Stipulation </B>attached thereto,
entered into between the Petitioner herein and Nortel, through their counsel dated June
20, 2006, which is attached to this Order as Schedule &#147;A&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(hh)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Settlement</B>&#148; means the proposed settlement of the <B>Nortel I Actions </B>pursuant to
the terms set forth in the <B>Settlement Agreement </B>adopting and ratifying the <B>Stipulation</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Settlement Approval Motion</B>&#148; means the motion for final approval of the
<B>Settlement </B>by this Court to be heard at the date, time and location described in
paragraph 6 of this Order;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(jj)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Stipulation</B>&#148; means the Stipulation and Agreement of Settlement attached to the
Settlement Agreement as Schedule &#147;A&#148;;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(kk)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Supplemental Agreement</B>&#148; means the agreement referred to in paragraph 23 of the
<B>Stipulation </B>setting forth certain conditions under which the <B>Settlement </B>may be
terminated by Nortel if potential <B>Class&nbsp;Members </B>who purchase in excess of a certain
number of Nortel common stock or options on Nortel common stock during the <B>Class&nbsp;Period</B>
exclude themselves from the Class;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ll)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>Unknown Claims</B>&#148; means any and all <B>Settled Claims </B>which any of the
<B>Representative Plaintiffs</B>, or <B>Class&nbsp;Members </B>does not know or suspect to exist in his,
her or its favour at the time of the release of the <B>Released Parties</B>, which if known by
him, her or it might have affected his, her or its decision(s) with respect to the
<B>Settlement</B>;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(mm)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>U.S. Action</B>&#148; means the proceeding in the U.S. Federal District Court for the
Southern District of New York, Consolidated Civil Action No.&nbsp;2001-CV-1855 (RMB),
certified by that Court as a class action on September&nbsp;5, 2003;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(nn)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>U.S. Court</B>&#148; means the U.S. Federal District Court for the Southern District of
New York; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(oo)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<B>U.S. Global Class</B>&#148; means all persons, except <B>Excluded Persons</B>, who purchased
Nortel common stock or call options on Nortel common stock or wrote (sold)&nbsp;put options
on Nortel common stock (collectively, &#147;Nortel Securities&#148;) during the <B>Class&nbsp;Period</B>, and
who suffered damages thereby, including, but not limited to, those persons or entities
who traded in Nortel Securities on the New York Stock Exchange and/or the Toronto Stock
Exchange. Excluded from this class are any putative class members who previously
requested exclusion in
</TD>
</TR>
</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-6-
<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">response to a notice dated March&nbsp;10, 2004 that was mailed to members of this class
beginning on April&nbsp;12, 2004 notifying them of the pendency of the <B>U.S. Action</B>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2. <B>THIS COURT ORDERS </B>that the bringing of the Quebec Action as a class action be authorized for the
purpose of settlement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3. <B>THIS COURT ORDERS </B>that the Quebec Class be defined as:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">All persons, except Excluded Persons who, while resident in Quebec
at the time, purchased Nortel common stock or call options on Nortel
common stock or wrote (sold)&nbsp;put options on Nortel common stock
during the Class&nbsp;Period.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4. <B>THIS COURT ORDERS </B>that the Association de protection des epargnants et investisseurs du Quebec
(A.P.E.I.Q.) and Andre Dussault be and are hereby appointed as the Representatives for the Quebec
Class.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5. <B>THIS COURT ORDERS </B>that the bringing of the Quebec Action as a class action is authorized for the
purpose of settlement only, on the basis of the following common issue:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Did Nortel make false or misleading statements or omissions
concerning its financial performance or its revenue and earnings
guidance during the Class&nbsp;Period?
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">6. <B>THIS COURT ORDERS </B>that the Settlement Approval Motion and the motion by Quebec Class&nbsp;Counsel for
approval of Quebec Class&nbsp;Counsel Fees shall be heard by this Court on a date to be set by this
Court, approximately 90&nbsp;days from the date set herein for the mailing of the Notice, at the
Montreal Court House, located at 1, Notre-Dame Street East, Montreal, Quebec.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">7. <B>THIS COURT ORDERS </B>that each potential member of the Quebec Class who elects to opt out of the
Quebec Class must do so by writing a letter, signed by such person, requesting exclusion and
clearly indicating the name, address and telephone number of the person seeking to opt out and the
date(s), price(s), and number(s) of shares of all purchases of Nortel common
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-7-


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">stock or call options on Nortel common stock and of all put options of Nortel common stock written
(sold)&nbsp;during the Class&nbsp;Period, and sending it by first class mail post marked no later than 60
days from the date set herein for the mailing of the Notice, to the address indicated in the
Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">8. <B>THIS COURT ORDERS </B>that any potential member of the Quebec Class who does not opt out in
accordance with paragraph 7 of this Order shall be bound by any future Orders in the Quebec Action,
and shall be bound by the terms of the Settlement if approved by each of the Courts in each of the
Nortel I Actions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9. <B>THIS COURT ORDERS </B>that potential members of the Quebec Class who, prior to the date of this
Order, opted out of, or requested exclusion from, the U.S. Action will be members of the Quebec
Class and shall be bound by any future Orders in the Quebec Action and by the terms of the
Settlement, unless they opt out of the Quebec Class in accordance with paragraph 7 of this Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">10. <B>THIS COURT ORDERS </B>that any potential member of the Quebec Class who opts out of the Quebec
Class in accordance with paragraph 7 of this Order may no longer participate in the Settlement or
any continuation of the Nortel 1 Actions , shall not be entitled to file a Proof of Claim as
provided in paragraph 20 of this Order, shall not be entitled to receive any payment out of the
Settlement and shall not be entitled to object to the approval of the Settlement as provided in
paragraph 22 of this Order.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11. <B>THIS COURT ORDERS </B>that The Garden City Group, Inc. is hereby appointed and approved as the
Claims Administrator, and shall be subject to the jurisdiction of this Court for all matters
relating to the Quebec Action, including the administration, interpretation, effectuation or
enforcement of the Settlement Agreement and this Order.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-8-


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">12. <B>THIS COURT ORDERS </B>that the Escrow Agents, acting in their capacity as escrow agents, shall be
subject to the jurisdiction of this Court in respect of the Gross Cash Settlement Fund.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">13. <B>THIS COURT ORDERS </B>that the form and content of the Notice, substantially in the form attached
hereto as Schedule &#147;B&#148;, is hereby approved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">14. <B>THIS COURT ORDERS </B>that the form and content of the Proof of Claim form, substantially in the
form attached hereto as Schedule &#147;C&#148;, is hereby approved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">15. <B>THIS COURT ORDERS </B>that the plan of dissemination of the Notice substantially in the manner
described in the Notice Plan attached to this Order as Schedule &#147;D&#148;, is hereby approved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">16. <B>THIS COURT ORDERS </B>that upon approval of the Notice and the Proof of Claim and the appointment
of The Garden City Group, Inc. as the Claims Administrator by the Courts, the Claims Administrator
shall cause the Notice and the Proof of Claim, substantially in the forms attached as Schedules &#147;B&#148;
and &#147;C&#148; to this Order, to be mailed, by first class mail, postage prepaid, no later than 14&nbsp;days
after entry of the last order by any order of the Courts in the Nortel I Actions and the Nortel II
Actions (as defined in the Stipulation) approving the Notice applicable to that proceeding, to all
of the Quebec Class&nbsp;Members who can be identified with reasonable effort, in accordance with the
Notice Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">17. <B>THIS COURT ORDERS </B>that additional copies of the Notice shall be made available to any record
holder requesting such for the purpose of distribution to beneficial owners, and such record
holders shall be reimbursed from the Gross Settlement Fund (as defined in the Stipulation), upon
receipt by the Claims Administrator of proper documentation, for the reasonable expense of sending
the Notice and Proof of Claim to beneficial owners.
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-9-


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">18. <B>THIS COURT ORDERS </B>that Quebec Class&nbsp;Counsel shall, at or before the hearing of the Settlement
Approval Motion, file with the Court proof of mailing of the Notice and Proof of Claim.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">19. <B>THIS COURT ORDERS </B>that the form of Publication Notice in substantially the form and content
attached hereto as Schedule &#147;E&#148; is hereby approved, and directs that Claims Administrator shall
cause the Publication Notice to be published in accordance with the Notice Plan, which publication
shall begin within ten (10)&nbsp;days of the mailing of the Notice, and Quebec Class&nbsp;Counsel shall, at
or before the hearing of the Settlement Approval Motion, file with this Court proof of the
publication of the Publication Notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">20. THIS COURT ORDERS that in order to be entitled to participate in the Net Settlement Fund (as
defined in the Stipulation), each Quebec Class&nbsp;Member shall take the following actions and be
subject to the following conditions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A properly executed Proof of Claim, substantially in the form attached hereto
as Schedule &#147;C&#148;, must be submitted to the Claims Administrator, at the Post Office Box
indicated in the Notice, postmarked not later than 120 clays after the date set herein
for the mailing of the Notice. Such deadline may be further extended by order of this
Court.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Proof of Claim shall be deemed to have been submitted when postmarked (if
properly addressed and mailed by first class mail, postage prepaid) provided such Proof
of Claim is actually received prior to the motion for an order of this Court approving
distribution of the Net Settlement Fund (as defined in the Stipulation).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Proof of Claim submitted in any other manner shall be deemed to have been
submitted when it was actually received at the address designated in the Notice.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">21. <B>THIS COURT ORDERS </B>that the Proof of Claim submitted by each Quebec Class&nbsp;Member must satisfy
the following conditions:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it must be properly completed, signed and submitted in a timely manner in
accordance with the provisions of the preceding paragraph;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>it must be accompanied by adequate supporting documentation for the
transactions reported therein, in the form of broker confirmation slips, broker</TD>
</TR>

</TABLE>
</DIV></DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-10-

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 9%">account statements, an authorized statement from the broker containing the
transactional information found in a broker confirmation slip, or such other
documentation as is deemed adequate by the Claims Administrator;
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if the person executing the Proof of Claim is acting in a representative
capacity, a certification of his current authority to act on behalf of the Quebec Class
Member must be included in the Proof of Claim; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the Proof of Claim must be complete and contain no material deletions or
modifications of any of the printed matter contained therein and must be signed under
penalty of perjury.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">22. <B>THIS COURT ORDERS </B>that, as part of the Proof of Claim, each Quebec Class&nbsp;Member shall submit to
the jurisdiction of this Court with respect to the claim submitted, and shall (subject to the
approval of the Settlement by the Courts) release all Settled Claims against the Released Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">23. <B>THIS COURT ORDERS </B>that Quebec Class&nbsp;Members who wish to file with the Court an objection or
comment to the Settlement or to the approval of Quebec Class&nbsp;Counsel Fees shall deliver a written
submission to the Claims Administrator at the address indicated in the Notice, no later than 60
days after the date set herein for the mailing of the Notice, and the Claims Administrator shall
file all such submissions with the Court prior to the hearing of the Settlement Approval Motion.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">24. <B>THIS COURT ORDERS </B>that if (a)&nbsp;the Settlement is terminated by Nortel pursuant to the
Supplemental Agreement and paragraph 26 of the Stipulation; (b)&nbsp;any specified condition to the
Settlement set forth in the Stipulation is not satisfied and any of the Representative Plaintiffs
or Nortel elect(s) to terminate the Settlement as provided in paragraph 25 in the Stipulation; or
(c)&nbsp;is terminated pursuant to paragraph 27 of the Stipulation, then: (i)&nbsp;this Order, including the
authorization of the bringing of the Quebec Action as a class action for the purpose of settlement,
shall be set aside and be of no further force or effect, and without prejudice to any party; (ii)
each party to the Quebec Action shall be restored to his, her or its respective position in the
litigation
</DIV>

</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="center" style="font-size: 10pt">-11-


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">as it existed immediately prior to the execution of the Settlement Agreement; and (iii)&nbsp;this Action
authorizing the bringing of the class action shall be annulled pursuant to the <I>Code of Civil
Procedure</I>, without prejudice to the Petitioner&#146;s ability to reapply for certification.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">25. <B>THIS COURT ACKNOWLEDGES </B>having been notified that a determination of fairness of the Settlement
at the Settlement Approval Hearing will be relied upon by Nortel for an exemption, pursuant to
Section&nbsp;3(a)(10) of the United States Securities Act of 1933, as amended, 15 U.S.C. &#167; 77c(a)(l ),
to enable the Gross Settlement Shares to be distributed to Class&nbsp;Members, and to counsel for the
Representative Plaintiffs as may be awarded by the respective Courts, without registration and
compliance with the prospectus delivery requirements of U.S. securities laws.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">27 Juin 2006
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Mich&#232;le Monast</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
J.S.C.
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">
</DIV>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
