Hi,
Network is not a port type, it's spanning-tree mode.
Yes in the upstream switch you supposed to configure the spanning-tree mode as 'network' for the trunk links between the switches
interface e1/1
swichport mode trunk
spanning-tree mode network
When attaching a fex to an upstream switch, the port from the switch downstream should me configured as switchport mode fex in order to be associated to a fex.
interface e2/1
switchport mode fex
fex associate 101
then you can configure the port of the fex as trunk or access port
int e101/1/1
switchport mode trunk (and here no need to configure STP mode network because this interface is supposed only to be connected to a host not a switch!)
checkout this link
http://www.cisco.com/c/en/us/td/docs/switches/datacenter/nexus2000/sw/configuration/guide/rel_4_0_1a/NX2000CLIConfig/FEX-features.html#32873