SUMMARY OF TERMS

Parties:          Connecticut Development Authority ("CDA")
                           Automated Light Technologies, Inc. ("ALT")
                           FiberCore, Inc. ("FCI")

Loan                       Balance:  As of August 20, 1996, ALT is in default on
                           its  loan  from  CDA,  with the  loan  balance  being
                           $272,150 on that date, including principal of $20,275
                           and  interest of $69,875.  ALT also owes late payment
                           penalties  in  connection  with the  loan,  which CDA
                           agrees to waive if ALT complies with its covenants as
                           contemplated hereunder.

Warrant:                   CDA's  warrant  currently  entitles  CDA to  purchase
                           106,399 shares of FCI common stock at $1.48 per share
                           (aggregate   purchase  price   $157,470).   CDA  will
                           exercise  the warrant and pay the  exercise  price by
                           canceling $157,470 of the Loan Balance.  As a result,
                           CDA will received 106,399 shares of FCI common stock.

Conversion:                On the date of  closing,  the then  remaining  actual
                           loan   balance    (principal   and   interest)   will
                           automatically  be converted into shares of FCI common
                           stock at the rate of 60% of the Current  Market Value
                           of FCI.  Current Market Value of FCI shall be defined
                           as the average  closing  price of FCI's common shares
                           as reported  through  (Bloomberg or America  On-Line)
                           for the last 15 consecutive trading days, immediately
                           preceding the date of closing.

Other:                     In the event that the CDA stock is not freely salable
                           to the public and FCI's common stock is not listed on
                           the Nasdaq  Small Cap Market or the  National  Market
                           Listing on or before May 15, 1997, FCI shall issue an
                           additional  10,000  shares of its common stock to CDA
                           for no additional consideration.  If these conditions
                           remain  unsatisfied  as of August 15, 1997,  then FCI
                           shall issue  10,000  additional  shares of its common
                           stock to CDA for no additional considerations.

                           All  share   issued  to  CDA  shall  be   subject  to
                           anti-dilution    protection    for   stock    splits,
                           combinations, and stock dividends.

                           Upon conversion,  CDA will issue a general release in
                           favor  of  ALT,  FCI,  their   respective   officers,
                           directors,  employees and guarantors  with respect to
                           the loan and  warrant,  and will  release its lien on
                           ALT's assets. ALT and FCI will issue similar releases
                           to CDA.


<PAGE>




Closing:          On or before August 31, 1996.

By their  signatures  below,  the  parties  accept  and agree to the  foregoing,
subject in each case to Board of Directors approval.

CONNECTICUT DEVELOPMENT AUTHORITY           AUTOMATED LIGHT
TECHNOLOGIES, INC.

BY:  /s/ Antio Roberto                      BY:   /s/ Charles DeLuca 
     ----------------------------                 ------------------------------
     Its Senior Vice President                    Its Exec. V.P. & Director
     Antonio Roberto                              Charles DeLuca
                                                  27th of August 1996



                                             FIBERCORE, INC.


                                             BY:   /s/  Mohd Aslami            
                                                   -----------------------------
                                                  Its Chairman, CEO
                                                  Mohd Aslami
                                                  27th of August 1996