EXH10-18

                                                              7 June, 1994



Mr. Walter Nadrag
SICO, Jena GmbH
D-7724 Jena, Postfach 78
GERMANY

Dear Walter:

Re:  Agreement between SICO and FiberCore, Inc.

This represents a legally binding contract and agreement  between  FiberCore and
SICO to manufacture optical fibers and optical fiber preforms in SICO's existing
facility in Jena, Germany, and to market the products.

Attachment 1 defines the terms of this agreement.

Both parties  recognize  that they will reveal  confidential  information to the
other  party  and  agree  that  all  such  proprietary  information  will not be
disclosed to third parties without express written permission.

Understood and agreed to by:




For SICO GmbH                               For FiberCore, Inc.


------------------------------              --------------------------------
Walter Nadrag             Date                Mohd Aslami                Date
                                              President & Chairman


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                      ATTACHMENT 1 - Term of the Agreement

1.   FiberCore will organize a 100% German  subsidiary  FiberCore GmbH. This new
     company will become FiberCore's European Common Market base.

2.   FiberCore GmbH will take over operational control of SICO Preform and fiber
     operation,  including  manufacturing,  sales,  marketing,  quality control,
     billing and collections.

3.   FiberCore Inc. will provide technology to upgrade existing multi-mode fiber
     production.

4.   FiberCore  Inc. will provide  product and process  technology to add single
     mode fiber production.

5.   FiberCore  GmbH will  provide  the  necessary  investment  to  upgrade  the
     existing  equipment shown in Exhibit B, so as to increase total  production
     and improve the  product  quality,  and  increase  sales  subject to market
     demands,  and cost  competitiveness.  The minimum investment  guaranteed by
     FiberCore,  Inc. shall be DM 2,000,000.  The nature,  timing, and any other
     considerations  with  respect  to such  upgrades  shall  be  determined  by
     FiberCore GmbH's board of directors.

6.   FiberCore  GmbH will lease  factory and office space as shown on Exhibit A,
     from SICO for six(6) years at a fixed  monthly  rental,  as provided for in
     item #8 below.  The lease term shall  commence on July , 1994.  The monthly
     rental shall include all utility costs, such as air conditioning,  heating,
     water,  lighting,  etc., for preform and fiber draw rooms,  property taxes,
     insurance, maintenance, and other related operating expenses for all leased
     space.

     In addition,  FiberCore GmbH shall be granted  renewal options (for periods
     of 1,3,  or 5 years) for an  aggregate  period of twenty  five (25)  years.
     Within 120 days prior to the termination of the initial lease term, and any
     subsequent  lease terms,  FiberCore GmbH shall notify SICO of its intention
     to exercise the 1, 3, or 5 year renewal option. In the event that FiberCore
     GmbH  elects to renew the lease,  the  annual  rental  during  the  renewal
     period(s) shall be adjusted by the excess of actual annual utility expenses
     paid (by FiberCore  GmbH directly to SICO) over the $207,000  ($179,000 and
     28,000)  annual base charge for such  expenses,  as shown in Exhibit C (3),
     provided however, that such annual percentage increase shall not exceed the
     annual percentage  increase in the inflation rate, as customarily  measured
     for that region of Germany.  The other items listed on Exhibit C (3) remain
     fixed for any subsequent renewal period.

7.   FiberCore  GmbH will lease from SICO all  existing  equipment  relating  to
     fiber and preform manufacturing,  as shown in Exhibit B for a period of six
     (6) years, at a fixed rate as provided for in item #8, below, commencing on
     July , 1 994. At the end of the six (6) year lease period,  FiberCore  GmbH
     shall make a lump-sum  payment equal to the then book value of the existing
     equipment shown in Exhibit B, in lieu of future lease payment.


<PAGE>



     The fixed rate shall include all costs  associated with utilities,  such as
     air  conditioning,  heating,  water,  lighting,  and clean room  utilities,
     taxes, maintenance, and insurance.

     For purposes of this agreement,  the existing  equipment shown in Exhibit B
     shall be deemed to have a useful life of six (6) years from the date of the
     lease and, accordingly,  said equipment should be depreciated over a period
     not to exceed six (6) years.

8.   The payment  for items 6 and 7 above shall be DM 584,000 per year,  paid in
     equal monthly payments of DM 48.675.

9.   FiberCore  GmbH will  contract with SICO for  personnel  including  factory
     labor at SICO's direct costs.  FiberCore GmbH will guarantee  employing the
     services of at least 20 people at salaries and benefits as shown on Exhibit
     C, for the first 6 months of this  Agreement.  During the second six months
     the number of employees  shall  increase to at least 25. After this period,
     the minimum number of employment shall be at least 30. FiberCore GmbH shall
     have the option of selecting the  personnel  from the list shown on Exhibit
     C.

     To the extent that SICO satisfies its personnel obligations with respect to
     its government  commitment  under the program,  FiberCore GmbH may elect to
     reduce its requirement ID contract for personnel from SICO,  during the six
     (6) years covered under this provision. This requirement shall expire after
     the first six (6) year term.

10.  FiberCore  GmbH will  transfer to SICO or SICO's owners  605,000  shares of
     FiberCore,  Inc. (USA),  currently valued at US $4 per share. Such transfer
     of shares  shall be tied to the  transfer  of  manufacturing  equipment  to
     FiberCore GmbH as indicated under item 7

11.  Mr.  Walter Nadrag will be offered  directorship  on the board of FiberCore
     GmbH for the term of this agreement.

12.  This  agreement  is subject to  FiberCore,  Inc.  approval  of the Board of
     Directors.

13.  In the event of default by FiberCore  GmbH,  SICO shall retain title to the
     equipment as listed in Exhibit B.  Furthermore,  SICO shall have the option
     to purchase any  additional  equipment  acquired by FiberCore  GmbH at fair
     market  value.  In the event  SICO,  or its'  assignee  chooses to maintain
     preform and/or fiber manufacturing,  SICO must enter into an agreement with
     FiberCore to pay a royalty fee of five percent (5%).

14.  In the event of  default by SICO,  FiberCore  GmbH shall have the option to
     fulfill SICO's  contractual  agreement with the Government and obtain title
     to all assets on SICO's behalf.

15.  All  parties to this  Agreement  acknowledge  and agree  that  other  (sub)
     contracts,  such as rental and equipment leases,  security agreements,  and
     other  related  agreements  will be executed and delivered in connection to
     and  in  respect  of  this  Agreement   (collectively,   the   "transaction
     Agreements".


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16.  FiberCore will have the exclusive right to use all trade names, patents and
     proprietary know how that has been developed or owned by SICO with] respect
     to fiber optics.

17.  SICO  and  Shareholders  jointly  and  severally  represent,   warrant  and
     convenient to and with FiberCore GmbH and FiberCore. Inc. as follows:

                                See Attachment A

18.  FiberCore GmbH and FiberCore, Inc. represent,  warrant and covenant to SICO
     and its Shareholders as follows:

                                See Attachment B

19.  Financials


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                                  ATTACHMENT A

Representation and Warranties:

(i)      SICO and of its related  entities,  if any, duly organized and existing
         and, if applicable, in good standing under the laws of its jurisdiction
         of  organization,  and has the  full  power  and  authority  to own its
         property and carry on its business as now being conducted.

(ii)     SICO has full power and  authority  to enter into,  execute and deliver
         this  Agreement  and any other  agreements  executed  and  delivered in
         connection herewith (collectively, the "Transaction Agreements") and to
         incur the  obligations  provided for herein and  therein,  all of which
         have been duly  authorized  by all  proper  and  necessary  action.  No
         consent or  approval is  required  as a  condition  to the  validity or
         performance of any of the Transaction  Agreements,  and the performance
         of SICO of its  obligations  thereunder  will not violate (1 ) any law,
         ordinance  or rule  applicable  to SICO or its  Shareholders,  (ii) the
         articles  of   incorporation,   by-laws,   partnership   agreement   or
         certificate  of  partnership,  as  applicable,  of  SICO or  (iii)  any
         agreement  by which the Customer is bound or by which any of its assets
         are affected.

(iii)    All authorizations,  consents, approvals, registrations, exemptions and
         licenses with or from governmental  authorities which are necessary for
         entering into, execution and delivery of the Transaction Agreements and
         the  performance  by  SICO  of its  obligations  thereunder  have  been
         effected or obtained and are in full force and effect

(iv)     This Agreement constitutes,  and the other Transaction Agreements, when
         executed and delivered for value received,  will constitute,  the valid
         and legally binding obligations of SICO and Shareholders enforceable in
         accordance with their terms, subject, as to enforcement, to bankruptcy,
         insolvency,  reorganization  and other  laws of  general  applicability
         relating  to or  affecting  creditors'  rights  and to  general  equity
         principles.

(v)      There are no legal  proceedings,  law suits, or investigations  pending
         or, so far as the officers or Shareholders,  as the case may be of SICO
         know,  threatened  before any court or  arbitrator  or before or by any
         governmental  authority which, in any one case or in the aggregate,  if
         determined  adversely to the interests of SICO or its related entities,
         if any,  would  have a  material  adverse  effect on (a) the  business,
         properties,  conditions (financial or otherwise) or operations, present
         or  prospective,  of SICO or its  related  entities  if any, or (b) the
         Transaction (s) contemplated by this Agreement.

         SICO is not aware of  infringing  on any third party  patents or has it
         been notified by any such third party.

(vi)     There  is no  statute,  regulation,  rule,  order or  judgment,  and no
         provision of any mortgage,  indenture, contract or agreement binding on
         SICO or affecting its properties which would prohibit, conflict with or
         in any way  prevent the  execution,  delivery,  or carrying  out of the
         terms of any of the Transaction Agreements.


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(vii)    SICO and each of its related  entities,  if any, has filed or caused to
         be filed all tax returns which to the knowledge of SICO are required to
         be filed and has paid all  taxes  shown to be due and  payable  on said
         returns or on any assessment made against it or any of its property and
         all  other  taxes,  assessments,  fees,  liabilities  or other  charges
         imposed on it or any of its  property  by any  governmental  authority,
         except for any taxes,  assessments,  fees, liabilities or other charges
         which are being  contested in good faith and for which  reserves  which
         are adequate under generally accepted  accounting  principles have been
         established.

(viii)   SICO holds full right,  title and interest in and to the  equipment and
         other property describe in this Agreement, free and clear of any claim,
         lien,  security  interest,  or other similar  charge,  except as others
         provided for in this agreement to FiberCore. GmbH.

(ix)     Shareholders covenant that during the initial six (6) year term of this
         Agreement that they will not (a) sell, transfer, gift, or in any manner
         whatsoever,  directly or  indirectly,  dispose of their shares in SICO,
         and (b)  cause  SICO  to  sell,  dispose,  transfer,  or in any  manner
         whatsoever,  including  by  way  of  merger,  consolidation,  or  other
         corporate transaction, directly or indirectly, dispose of substantially
         all the assets or property of SICO,  including  specifically the assets
         and property of SICO which are the subject of this Agreement.


<PAGE>



                                  ATTACHMENT B

Representation and Warranties of FiberCore, Inc.

(I)      FiberCore,  Inc. is a corporation validly existing and in good standing
         under the laws of the State of Nevada.

(ii)     FiberCore,  Inc.  has  full  corporate  power  and  authority  to make,
         execute, deliver and perform this Agreement and to execute, deliver and
         perform the other instruments required to be delivered.

(iii)    The execution, delivery and performance of this Agreement has been duly
         authorized by all necessary  corporate action on the part of FiberCore,
         Inc., and this Agreement when executed and delivered,  will  constitute
         the  legal,   valid  and  binding   obligations  of  FiberCore,   Inc.,
         enforceable against it in accordance with their respective terms

Representation and Warranties of FiberCore GmbH.

(i)      Organization and Good Standing FiberCore GmbH is a corporation  validly
         existing and in good standing under the laws of Germany.

(ii)     FiberCore GmbH has full corporate power and authority to make, execute,
         deliver and perform this Agreement and to execute,  deliver and perform
         the other instruments required to be delivered.

(iii)    The execution, delivery and performance of this Agreement has been duly
         authorized by all necessary  corporate  action on the part of FiberCore
         GmbH, and this  Agreement  when executed and delivered will  constitute
         the legal, valid and binding obligations of FiberCore GmbH, enforceable
         against it in accordance with their respective terms.


<PAGE>



BQL Burgauer Quarzglasschmelze
und Lichtwellenleiterwerk GmbH

Bisherige Arbeiten zur Preformentwicklung

1979-1981         GI-MM-Preform 50/125
                  Kernglassystem GeO2-P2O5-SiO2
                  Arbeitswellenlange 0,85 (mu)m

1984-1986         GI-MM-Preform 50/125
                  Arbeitswellenlange 1,3 (mu)m

1985-1986         Strahlungsharte GI-MM-Preform 50/125
                  Kernglassystem GeO2- SiO2
                  Arbeitswellenlange 1,3, (mu)m

1987-1989         Standard-SM-Preform 9/125
                  Profiltyp: depressed cladding
                  Kernglassystem GeO2-SiO2
                  Claddingglassystem P2O5-F-SiO2

1990              DS-SM-Preform
                  Profiltyp:triangular core
                           triple clad, depressed inner cladding
                  Arbeitswellenlange 1,55(mu)m

1991              HNA-GI-MM-Preform 62,5/125
                  Arbeitswellenlange 0,85 / 1,3 (mu)m

1992              HNA large core GI-Preform 100/140
                  Arbeitswellenlange 0,85 / 1,3 (mu)m



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                           SECURITY OWNERSHIP CONTRACT

                                     between

1)   Jena, etc. represented by its Managing Director Walter Nadrag,

2)   FiberCore, etc. represented by its President Dr. Mohd A. Aslami and Gregory
     A. Perry.

In view of the already  sealed but still to be  certified,  contract  agreements
regarding  the  formation of FiberCore  GmbH,  Germany,  signatory 1.) will give
signatory,  2.) for receipt of six hundred five thousand shares,  current market
value  of S4  per/sh.,  equipment  listed  in the  appendix,  property  of  Jena
Quarzschmelze GmbH, as security.

The security will be maintained  until payment for 605,000  shares of FiberCore,
Inc. has been made. Signatory 1.) declares that all afore mentioned equipment is
free of any lien against it by any third party.