Document:

<PAGE>

                                                                   EXHIBIT 10.19

                              PRODUCTION AGREEMENT

                         MADE AND ENTERED BY AND BETWEEN

                               ENDWAVE CORPORATION

                                       AND

                                    TRW INC.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    2(21)
58 GHz Module                                                          28.1.1999

                                TABLE OF CONTENTS

PREAMBLE
ARTICLE 1           OBJECT OF THE AGREEMENT
ARTICLE 2           SPECIFICATIONS
ARTICLE 3           PROJECT PLAN
ARTICLE 4           DIVISION OF RESPONSIBILITIES
ARTICLE 5           MILESTONES
ARTICLE 6           PROTOTYPES
ARTICLE 7           CERTIFICATE OF ACCEPTANCE
ARTICLE 8           CHANGES
ARTICLE 9           WARRANTIES
ARTICLE 10          CANCELLATION OF THE DEVELOPMENT WORK
ARTICLE 11          RESERVED
ARTICLE 12          RESERVED
ARTICLE 13          TERMS OF DELIVERY
ARTICLE 14          PACKING
ARTICLE 15          DELIVERY TIMES AND DELAYS
ARTICLE 16          PURCHASE OF THE PARTS
ARTICLE 17          QUALITY MANAGEMENT PLAN
ARTICLE 18          FACILITY SURVEYS
ARTICLE 19          ENVIRONMENTAL MANAGEMENT
ARTICLE 20          MANUFACTURING RIGHTS AND INTELLECTUAL PROPERTY RIGHTS
ARTICLE 21          CONFIDENTIALITY
ARTICLE 22          FORCE MAJEURE
ARTICLE 23          EFFECTIVE DATE AND TERM
ARTICLE 24          PREMATURE TERMINATION
ARTICLE 25          APPLICABLE LAW AND SETTLEMENT OF DISPUTES
ARTICLE 26          FINAL PROVISIONS
ARTICLE 27          LIMITATION OF LIABILITY

APPENDIX 1          Product Pricing
APPENDIX 2          Product Definition, Module Test Plan, Specifications (Nokia)
APPENDIX 3          Project Plan, Milestone Schedule
APPENDIX 4          Commercial Products Quality Assurance Requirements Document
<PAGE>

Development Agreement                                                    3(21)
58 GHz Module                                                          28.1.1999

                              PRODUCTION AGREEMENT

THIS PRODUCTION AGREEMENT (the "Agreement"), made and entered into this 31st day
of March, 2000 by and between

ENDWAVE CORPORATION, a company incorporated in Delaware with its principal
office at 321 Soquel Way, Sunnyvale, CA 94086 (hereinafter referred to as
'Endwave') of the first part

AND

TRW INC., a company incorporated in Ohio, and acting through its Space and
Electronics Group, with its principal office at One Space Park, Redondo Beach,
CA 90278, USA (hereinafter referred to as 'TRW') of the second part

(hereinafter Endwave and TRW are jointly referred to as the "Parties").

WITNESSETH THAT

WHEREAS   effective January 28, 1999, TRW and Nokia Telecommunications OY
          ("Nokia") entered into the Development Agreement (the "Nokia
          Agreement"), whereby TRW agreed to develop and produce the Parts (as
          hereinafter defined).

WHEREAS   TRW's previously wholly owned subsidiary, TRW Milliwave Inc. ("MW"),
          has merged with Endwave, effective the date hereof.

WHEREAS   TRW, pursuant to the Nokia Agreement, was to develop and produce the
          Parts.

WHEREAS   TRW wishes to complete development work on the Parts up through the E4
          milestone, after which Endwave will complete development and produce
          the Parts as specified in the Nokia Agreement.

WHEREAS   as provided in the Agreement and Plan of Merger, dated as of February
          28, 2000 (the "Merger Agreement"), by and among TRW, Endwave (f.k.a.
          Endgate Corporation) and MW, TRW will bear all costs of development of
          the Parts up through the E4 milestone (after which Endwave shall be
          responsible for all remaining development costs); provided, however,
          that if the E4 milestone criteria change after the date hereof,
          Endwave shall be responsible for all costs of E4 milestone development
          after the date of such change.

NOW THEREFORE THE PARTIES HERETO HEREBY AGREE AS FOLLOWS:

                                    ARTICLE 1
                             OBJECT OF THE AGREEMENT
<PAGE>

Development Agreement                                                    4(21)
58 GHz Module                                                          28.1.1999

                  The purpose of this Agreement is to agree on the terms and
conditions under which Endwave undertakes the development work after the E4
milestone or for the E4 milestone in the event of a Change (as hereinafter
defined) in the E4 milestone criteria after the date hereof (hereinafter
referred to as 'Development Work') of the transceiver modules and the production
of the Parts hereunder.

                                    ARTICLE 2
                                 SPECIFICATIONS

                  The Parties have jointly agreed on the specifications and the
test plan for the final acceptance (hereinafter jointly referred to as
'Specifications'), as attached hereto as APPENDIX 2, to which the 58 GHz
millimeter wave transceiver modules (hereinafter referred to as 'Parts') shall
strictly conform.

                  Furthermore, the requirements in respect of the test plan,
test specifications and the test reports, that verify the functionality of the
Parts, shall be delivered and completed in accordance with the milestone
schedule (hereinafter referred to as the 'Milestone Schedule') attached hereto
as APPENDIX 3.

                                    ARTICLE 3
                                  PROJECT PLAN

                  Endwave shall perform the Development Work of the Parts in
accordance with the project plan (hereinafter referred to as the "Project Plan")
contained in APPENDIX 3.

                  The Milestone Schedule shall specify, among other agreed
issues, the agreed date of completion in respect of each Milestone, the criteria
for each Milestone and the items to be delivered upon each Milestone.

                                    ARTICLE 4
                          DIVISION OF RESPONSIBILITIES

                  The Parties shall co-operate in carrying out the Development
Work. The division of responsibilities (hereinafter referred to as 'Division of
Responsibilities') in respect of the Development Work is contained in APPENDIX 3
hereto. The Parties shall adhere to their respective duties and obligations.

                                    ARTICLE 5
                                   MILESTONES

                  5.1 The Development Work is divided into various milestones
(hereinafter referred to as 'Milestone'), which in turn may be divided into
various phases, as specified in the Project Plan.

                  5.2 Upon the completion of each Milestone the Parties and
Nokia shall review the results thereof on the basis of a written report
submitted by Endwave.

<PAGE>

Development Agreement                                                    5(21)
58 GHz Module                                                          28.1.1999

                  5.3 If the results fulfill the criteria set forth for the
respective Milestone under this Agreement, a certificate of approval
(hereinafter referred to as 'Certificate of Approval') of the respective
Milestone shall be signed by TRW promptly following TRW's receipt of a
Certificate of Approval from Nokia under the terms of the Nokia Agreement. In
the event Nokia's Certificate of Approval is not signed and TRW is not notified
by Nokia in writing of any specific deficiencies which do not fulfill the
criteria within 30 days after TRW's completion of the corresponding milestone
under the Nokia Agreement, the impact on the time schedule and/or on the
Agreement shall be reviewed between the Parties in accordance with Clause 8.1
below. The signing of such certificate shall be without prejudice to any of
Endwave's obligations under this Agreement.

                                    ARTICLE 6
                                   PROTOTYPES

                  6.1 Endwave shall provide TRW with functionally working and
properly tested prototypes of the Parts corresponding to Endwave's Development
Work (hereinafter referred to as 'Prototypes') of the Parts in the amounts
specified in APPENDIX 1. The Prototypes shall meet the Specifications. As
provided in the Merger Agreement, TRW will bear all development responsibilities
and all costs of development of the Prototypes up through the E4 milestone
(after which Endwave shall be responsible for all remaining development costs);
provided, however, that in the event of a Change in the E4 milestone criteria
after the date hereof, Endwave shall be responsible for all development
responsibilities (which Endwave may subcontract to TRW pursuant to the Services
Agreement, dated the date hereof, between TRW and Endwave) and all costs of E4
milestone development after the date of such change.No payments shall be owing
to Endwave on account of the Prototypes, except according to the parties'
agreement upon a Change.

                  6.2 To the extent that there are Prototypes after the E4
milestone or to the extent that there is a Change in the E4 milestone criteria
after the date hereof, Endwave shall test the Prototypes during their
development and prior to shipment to Nokia, as TRW's designee, in accordance
with the test plan described in APPENDIX 2 hereto. Endwave shall provide TRW and
Nokia with detailed written reports of the results of the testing.

                  6.3 TRW or Nokia shall test the Prototypes in order to
evaluate their conformance to the Specifications. TRW shall notify Endwave
promptly following receipt of corresponding notification from Nokia of any found
defects or failures to meet the Specifications. Nokia has agreed to inform TRW
weekly on the status of test progress; TRW will promptly pass along to Endwave
such status reports. However, the testing performed in accordance with this
Article 6.3 shall not absolve Endwave from any of its obligations under this
Agreement.

                  6.4 In the event the Prototypes do not meet the Specifications
as specified in APPENDIX 2, but only to the extent that there are Prototypes
after the E4 milestone or to the extent that there is a Change in the E4
milestone criteria after the date hereof, TRW shall have the right to reject the
Prototypes and Endwave shall at its own cost make the required design changes,
produce the new Prototypes and undertake any other necessary action to
manufacture Prototypes that meet the Specifications in accordance with revised
schedule mutually agreed by the Parties. Such corrective action shall be
undertaken without delay. In the event of rejection, a written report by TRW
shall be submitted to Nokia stating the reasons for rejection promptly following
TRW's receipt of a corresponding report from Nokia pursuant to the Nokia
Agreement.

<PAGE>

Development Agreement                                                    6(21)
58 GHz Module                                                          28.1.1999

                  6.5 Endwave shall provide to TRW in connection with the
delivery of the Prototypes all the required documentation (hereinafter referred
to as 'Documentation') specified in APPENDIX 2 hereto.

                                    ARTICLE 7
                            CERTIFICATE OF ACCEPTANCE

                  In the event the Prototypes meet the Specifications, all
deliverables as set forth in this Agreement (including without limitation
documentation) have been delivered to TRW (or to Nokia, as TRW's designee), and
a Certificate of Approval has been issued by TRW in accordance with Article 5.3
in respect of each Milestone under this Agreement, then TRW shall sign a
certificate of acceptance (hereinafter referred to as 'Certificate of
Acceptance') promptly following TRW's receipt of a corresponding certificate of
acceptance from Nokia under the Nokia Agreement and the Development Work shall
be deemed completed without prejudice to Endwave's obligations under Article 9.

                                    ARTICLE 8
                                     CHANGES

                  8.1 TRW, on behalf of Nokia, may, at any time prior to the
signing the Certificate of Acceptance, propose changes to the Division of
Responsibilities, the Milestone Schedule, the Project Plan, to design and/or to
the Specifications of the Parts (collectively "Changes" and each a "Change") to
the extent that corresponding changes are made in connection with the Nokia
Agreement. Any addition to the Milestone Schedule beyond the E4 milestone shall
be considered a Change. Both parties agree to negotiate in good faith to
implement the Changes on reasonable terms and conditions to be agreed upon on a
case by case basis. An amendment to this Agreement shall be signed by both
Parties taking into account all of the effects of the Change to the Milestone
Schedule, Division of Responsibilities, and/or other terms of this Agreement.
Notwithstanding the foregoing, Endwave may, at its sole discretion, elect to
negotiate and contract directly with Nokia for the provision of development
services related to Parts.

                  Any changes that do not affect the Milestone Schedule or other
conditions of this Agreement, shall be implemented by Endwave without changing
any of the terms of this Agreement.

                  8.2 Notwithstanding the above in this Article 8, if a change
of the design and/or Specification of the Parts becomes necessary or if the
Prototypes have to be remanufactured in order to comply with terms and
conditions of this Agreement, the cost of such change or remanufacture shall be
borne by the Party to whose action or omission such change is attributable.

                                    ARTICLE 9
                                   WARRANTIES

                  9.1 The 58 GHz Prototype units are sold on an "as is where is"
basis and are not covered by any warranty/either express or implied.

                  9.2 Endwave hereby warrants that upon the issuance of the
Certificate of Acceptance, Endwave is able to manufacture Parts that meet the
Specifications (including without

<PAGE>

Development Agreement                                                    7(21)
58 GHz Module                                                          28.1.1999

limitation the figures set forth in the Specifications). Such warranty will be
superseded by the warranty contained in any Purchase Agreement for Mice 58 GHz
Parts.

                  9.3 Endwave warrants that the Parts shall be free from defects
(including latent defects and otherwise) in materials and workmanship and shall
conform in all material respects to the Specifications. Such warranty will be
valid for a period of [*] after the delivery of the Parts to TRW's
designee, Nokia. In the event of a breach of such warranty, then Endwave shall
be responsible at the cost of Endwave for undertaking any and all necessary
corrective action (including but not limited to redesigning the Parts) to ensure
that the Parts conform to the Specifications and that such defects do not
reoccur in the Parts. These corrective actions do not include a product recall
or retrofit unless otherwise agreed by the Parties.

                  THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES,
CONDITIONS OR REPRESENTATIONS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE
INCLUDING ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR
MERCHANTABILITY. THIS WARRANTY SHALL NOT BE VALID IF THE PRODUCTS HAVE BEEN
SUBJECTED TO ABUSE, MISUSE, ACCIDENT, ALTERATION, NEGLECT, UNAUTHORIZED REPAIR,
OR EXPOSURE TO CONDITIONS BEYOND APPLICABLE ENVIRONMENT.

                                   ARTICLE 10
                      CANCELLATION OF THE DEVELOPMENT WORK

Without prejudice to Article 15.5 and Article 25, following a corresponding
                  cancellation of the Nokia Agreement by Nokia, TRW may at any
                  time at its discretion cancel the Development Work in whole or
                  in part upon a written notice thereof to Endwave. In the event
                  of cancellation, [*].
Neither TRW nor Nokia shall have any liability towards Endwave in the event of
such cancellation of the Development Work in whole or part other than what is
stated here in this Article 10.

                                   ARTICLE 11
RESERVED
                                   ARTICLE 12
                                    RESERVED

                                   ARTICLE 13
                                TERMS OF DELIVERY

                  13.1 The terms of delivery for the Prototypes and the
Documentation provided hereunder is DDU, Espoo, Nokia Telecommunications
(INCOTERMS 1990).

                  13.2 The risk and title in the Prototypes and the
Documentation to be delivered hereunder shall be transferred to TRW's designee,
Nokia, upon delivery in accordance with the terms of delivery defined in Clause
13.1.

                  13.3 The Prototypes and the Documentation shall be addressed
to a named Nokia buyer or design engineer as advised by TRW or Nokia.

[*]  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    9(21)
58 GHz Module                                                          28.1.1999

                                   ARTICLE 14
                                     PACKING

                  The Prototypes and the Documentation are to be packed (i)
properly to withstand transportation and (ii) when applicable, as required and
instructed by Nokia. Endwave agrees indemnify TRW for any damage that the
Prototypes or Documentation may suffer due to improper packing.

                                   ARTICLE 15
                            DELIVERY TIMES AND DELAYS

                  15.1 The agreed development schedule included in the Project
Plan is of the essence in this Agreement.

                  15.2 If Endwave can not perform its obligations hereunder in
accordance with the agreed development schedule described in the Project Plan
and the Milestones therein, then Endwave shall as soon as Endwave is aware of
the delay inform both TRW and Nokia thereof in writing stating the reason for
the delay and propose a new date for performing its respective obligations.

                  15.3 If the Parties have not agreed on a new date, or in the
event Endwave can not meet its obligations on the new date, then Nokia shall be
entitled to [*].

                  15.4 In the event Endwave has not notified TRW and Nokia of
the delay as aforesaid in Article 15.2, then TRW shall be entitled to [*].

                  15.5 If Endwave is in delay for [*] or more, then TRW may,
without prejudice to its other rights and remedies, terminate this Agreement
pursuant to Article 15.5 (but only to the extent that Nokia similarly terminates
TRW under the Nokia Agreement), such termination shall be without any liability
towards Endwave, and Endwave shall have no right to make any claims arising as a
result of this termination against TRW.

*    CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    10(21)
58 GHz Module                                                          28.1.1999

                                   ARTICLE 16
                              PURCHASE OF THE PARTS

                  16.1 Upon signing of the Certificate of Acceptance, TRW shall
Order a minimum quantity of [*] within [*] of the issuance of the Certificate of
Acceptance. Such failure to purchase shall not be considered a breach of this
agreement, provided however, in such event TRW shall pay to Endwave any indirect
and direct costs Endwave suffers as a direct result of such failure to purchase
the [*] (such costs shall not exceed [*].

                                   ARTICLE 17
                      QUALITY REQUIREMENTS AND QUALITY PLAN

                  Endwave shall at all times strictly adhere to the quality
requirements (hereinafter referred to as 'Quality Requirements') set forth in
APPENDIX 4 hereto.

                  It is recorded here, that Endwave has established a quality
plan (hereinafter referred to as 'Quality Plan') which describes the various
measures Endwave shall undertake in order to meet the Quality Requirements.
Endwave shall at all times strictly adhere to the Quality Plan included in
APPENDIX 4.

                                   ARTICLE 18
                                FACILITY SURVEYS

                  TRW reserves the right, by itself, by Nokia or through TRW's
or Nokia's appointed representative, during regular business hours and following
reasonable notice to Endwave, to inspect Endwave's physical facilities and
Endwave's quality control procedures in order to assure compliance with the
Specifications, Design Rules, Quality Requirements, Quality Plan and other
standard industry practices and procedures. Endwave shall afford a similar
inspection right to Nokia's customers upon approval by Endwave. Endwave shall
maintain quality control procedures mutually agreed upon by the Parties as a
result of such facility survey. in accordance with its ISO 9001 Certification
requirements. In the event that TRW or Nokia determines, in good faith, during
any facility survey, that the quality procedures applied by Endwave are
insufficient as to ensure consistent acceptable quality, then TRW or Nokia shall
specifically inform Endwave thereof and of the reasonable corrective measures to
be undertaken by Endwave upon mutual agreement of Endwave, TRW and Nokia as to
the actions to be taken. Endwave hereby agrees to undertake any such mutually
agreed corrective measures without delay. The Parties further agree, that the
above shall also apply to any and all sub-suppliers of Endwave involved in the
Development Work, including without limitation TRW itself. Endwave hereby agrees
to take all appropriate measures in order to ensure compliance of its respective
sub-suppliers with the foregoing.

                                   ARTICLE 19
                            ENVIRONMENTAL MANAGEMENT

                  Endwave agrees to comply with the principles of the Business
Charter for Sustainable Development (published by the International Chamber of
Commerce in 1991) for environmental management. Nokia encourages the adoption of
the principles therein by the

[*]  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    11(21)
58 GHz Module                                                          28.1.1999

Supplier and its sub-suppliers. TRW and Nokia may, where appropriate, request
improvements in Endwave's practices to ensure compliance with the said
principles.

                                   ARTICLE 20
              MANUFACTURING RIGHTS AND INTELLECTUAL PROPERTY RIGHTS

For the purposes of this Article 20:

"Application" shall mean applications for statutory rights in intellectual
properties, including patents, utility models, design patents, mask work
registrations, design registrations, chip topography rights, copyrights, and
other forms of statutory protection of any kind.

"Intellectual Property Rights" shall mean patents (including utility models),
design patents, mask work and designs (whether or not capable of registration),
chip topography rights and other like protection, copyright, trademark and any
other form of statutory protection of any kind and Applications for any of the
foregoing respectively, as well as any trade secrets.

"Manufacturing Documentation" shall mean all design and manufacturing
information relating to the manufacture of the Parts, including but not limited
to the drawings, specifications, standards, processes, tooling, engineering
folder, qualification data, parts lists, software and all other technical and
design information as well as data utilised in the manufacture of the Parts by
Endwave and that may be needed for the manufacture of the Parts (including any
changes thereto) by TRW, Nokia and/or by a third party.

"Nokia Background Works" shall mean the Specifications (including but not
limited to the information provided by Nokia of [*], technical data, designs,
documents, drawings, test results, software, models and samples, know-how, and
other materials to which Nokia and/or its licensors own the Intellectual
Property Rights. "Endwave Background Works" shall mean technical data, designs,
documents, drawings, test results, software, models and samples, know-how, and
other materials (a) to which Endwave either owns the Intellectual Property
Rights or has the right to sublicense same, and (b) which are either existing on
the date of this Agreement or thereafter gained other than under this Agreement.

                  20.1 Endwave shall not have any right to manufacture and/or
sell and/or license the Parts and/or Prototypes to third parties, or in any way
utilise the Specifications, or design or technical information provided by Nokia
without the prior written consent of Nokia. However, subject to the conditions
set forth below in this Clause 20.1, this provision does not limit Endwave's
ability to manufacture and/or sell and/or license components developed by
Endwave and included in the Parts to third parties so long as Nokia's
Intellectual Property Rights are not infringed, Nokia Background Works or the
Specifications are not utilized and the confidentiality obligations set forth
under Clause 21 are complied with.

                  It is expressly agreed that all rights and complete ownership
with respect to Nokia Background Works which are provided by Nokia to Endwave
shall remain vested in Nokia and/or its licensors.

[*]  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    12(21)
58 GHz Module                                                          28.1.1999

                  Endwave shall have a limited license to use such Nokia
Background Works (1) only for the development of the Part for TRW or Nokia in
accordance with this Agreement, and (2) in the event Nokia and Endwave execute a
purchase agreement in accordance with Article 16 above, then only for the
manufacture and supply of the Parts to Nokia in accordance with the terms and
conditions of such purchase agreement and only for the period of validity of
such purchase agreement; and for no other purpose. Such Nokia Background Works
shall be returned to Nokia immediately upon request.

                  Any and all Endwave Background Works shall remain the sole
property of Endwave and/or its licensors.

                  20.2 Subject to Clause 20.1, above, all inventions (whether or
not patentable), conceived or first reduced to practice within the scope of this
Agreement solely by Nokia personnel will be the sole and exclusive property of
Nokia, and Nokia will retain any and all Intellectual Property Rights therein as
well as the right to formally effect the vesting of such Intellectual Property
Rights in Nokia, including but not limited to by filing Applications thereon.
Intellectual property rights vis-a-vis TRW and Endwave are covered in separate
agreements (e.g., the Services Agreement).

                  Endwave shall have a limited license, to use the above defined
inventions (1) only for the development of the Parts for TRW and Nokia in
accordance with this Agreement, and (2) in the event the Parties execute a
purchase agreement in accordance with Article 16 above, then only for the
manufacture and supply of the Parts to TRW and Nokia in accordance with the
terms and conditions of such purchase agreement and only for the period of
validity of such purchase agreement; and for no other purpose. Any material
related to such inventions shall be returned to Nokia immediately upon request.

                  20.3 Subject to Clause 20.1, above, all inventions (whether or
not patentable), conceived or first reduced to practice within the scope of this
Agreement solely by Endwave's personnel will be the sole and exclusive property
of Endwave, and Endwave will retain any and all Intellectual Property Rights
therein as well as the right to formally effect the vesting of such Intellectual
Property Rights in Endwave, including but not limited to by filing Applications
thereon.

                  20.4 (a) Subject to Clause 20.1 above inventions (whether or
not patentable) conceived or first reduced to practice within the scope of this
Agreement jointly by Endwave and Nokia and/or TRW personnel (the "Joint
Inventions"), will be jointly owned by Endwave and Nokia and/or TRW, each party
having an equal and undivided interest therein. References in Section 20 hereof
that refer to a "Party", "Parties" or "Endwave and Nokia and/or TRW", in
connection with Joint Inventions or Joint Know-how, shall refer to (i) Endwave
and Nokia where the Joint Invention or Joint Know-how is jointly developed by
Endwave and Nokia personnel, (ii) Endwave and TRW where the Joint Invention or
Joint Know-how is jointly developed by Endwave and TRW personnel and (iii)
Endwave, TRW and Nokia where the Joint Invention or Joint Know-how is jointly
developed by Endwave, TRW and Nokia personnel.

                       Each Party undertakes to take all steps necessary to
allow the Parties to acquire the ownership in such Joint Inventions. The Parties
will mutually determine whether Applications will be filed on such Joint
Inventions, which Party will prepare and file such Applications, and the country
or countries in which the same are to be filed. The expenses incurred

<PAGE>

Development Agreement                                                    13(21)
58 GHz Module                                                          28.1.1999

in connection with these Applications will be divided equally between the
Parties. With respect to rights and claims of the inventors of such Joint
Inventions, each Party undertakes (a) to take care, at its own expense, of all
rights and claims resulting from the acquisition of the ownership in such Joint
Inventions, of its own inventors and (b) to indemnify and hold the other Party
harmless with respect to such rights and claims; this applies especially to all
possible rights and claims of the inventors with respect to payments resulting
from the utilisation of such Joint Inventions and complying for example with the
"Laki tyosuhdekeksinnoista" in Finland.

                       For avoidance of doubt it is expressly recorded here that
each party has the right to exploit (including without limitation licensing)
such Joint Inventions at its sole discretion and shall indemnify and hold
harmless the other party for any claims (including without limitation claims
based on provisions concerning inventions made by employees) arising from such
exploitation. Notwithstanding the above in this Clause 20.4 (a) neither party
may grant any exclusive licenses without a prior written consent of the other
Party, which consent shall not be unreasonably withheld.

                       (b) If the Parties are not able to mutually agree to file
an Applications on a Joint Invention or to maintain such an Applications or
corresponding Intellectual Property Right, either one of the Parties may elect
to assume such expenses (the "Electing Party"). The Electing Party will control
the preparation and prosecution of any such Applications or the maintenance of
any such Applications or the respective Intellectual Property Rights. The title
in any such Applications or in any Intellectual Property Rights granted or
registered thereon will belong exclusively to the Electing Party. The Party
declining to bear its share of the expenses of prosecuting or maintaining
Applications or Intellectual Property Rights covering a Joint Invention (the
"Declining Party") agrees to execute any and all actions, declarations, forms,
assignments or other documents to effect the foregoing, whereby the Electing
Party undertakes to indemnify and hold harmless the Declining Party with respect
to any and all rights and claims arising in connection with the execution of
such aforementioned actions, declarations, forms, assignments or other
documents. Any license rights of the Declining Party to the Applications or
Intellectual Property Rights covering a Joint Invention shall be agreed in
writing between the Parties on case by case basis.

                  20.5 (a) Subject to Clause 20.1, above, Endwave shall retain
and maintain complete ownership of all technical data, engineering designs,
drawings, test results, computer software and similar material first produced or
generated solely by Endwave in the course of work performed pursuant to this
Agreement ("Endwave Know-how").

                       (b) Subject to Clause 20.1, above, TRW shall retain and
maintain complete ownership of all technical data, engineering designs, drawing,
test results, computer software and similar material first produced or generated
solely by TRW in the course of work performed pursuant to this Agreement ("TRW
Know-how").

                       Endwave shall have a limited license to use such TRW
Know-how (1) only for the development of the Parts for Nokia in accordance with
this Agreement, and (2) in the event the Parties execute a purchase agreement in
accordance with Article 16 above, then only for the manufacture and supply of
the Parts to TRW in accordance with the terms and conditions of such purchase
agreement and only for the period of validity of such purchase agreement; and
for no other purpose. All materials embodying such TRW Know-how shall be
returned to TRW immediately upon request.

<PAGE>

Development Agreement                                                    14(21)
58 GHz Module                                                          28.1.1999

                       (c) Subject to Clause 20.1 technical data, engineering
designs, drawings, test results, computer software and similar material produced
or generated jointly by Endwave and Nokia and/or TRW in the course of work
performed pursuant to this Agreement ("Joint Know-how") will be jointly owned by
the Parties recorded here that each party has the right to exploit (including
without limitation licensing) such Joint Know-how at its sole discretion and
shall indemnify and hold harmless the other party for any claims arising from
such exploitation. Notwithstanding the above in this Clause 20.5 (c) neither
party may grant any exclusive licenses without a prior written consent of the
other party thereto, which consent shall not be unreasonably withheld.

                  20.6 (a) Endwave hereby grants to TRW and Nokia, under any
Application and Intellectual Property Rights which may be obtained in accordance
with Articles 20.3 and 20.4 of this Agreement and to the Endwave Know-how
generated in accordance with Article 20.5 a) and c) of this Agreement a
non-exclusive, royalty-free, irrevocable and perpetual license to make or have
made, to use, and to sell Parts developed as a result of performance under this
Agreement.

                       (b) Endwave agrees that, in the event:

                           i.   Endwave is in default of a material obligation
                                under this Agreement and/or the purchase
                                agreement and fails to remedy such default
                                within a reasonable time fixed by TRW (which
                                period shall not be less than thirty (30) days)
                                in a written notice drawing the attention of
                                Endwave to the default and requiring the same to
                                be remedied; and/or

                           ii.  Endwave becomes insolvent, files for any form of
                                bankruptcy, makes any assignment for the benefit
                                of creditors, has a receiver, administrative
                                receiver or officer appointed over the whole or
                                a substantial part of the assets, or ceases to
                                conduct business or an equivalent act to any of
                                the above occurs under the laws of the
                                jurisdiction of Endwave; and/or

                           iii. of discontinuation or permanent cessation of the
                                respective part of the business and/or of
                                manufacture the Parts by Endwave; and/or

                           iv.  of an inability of Endwave or unwillingness of
                                Endwave to manufacture the Parts; and/or of a
                                change of majority ownership or majority control
                                to a material competitor of Nokia

                           v.   a default by Endwave is clearly not capable of
                                being remedied within the period set out in
                                subclause 20.6.(b)i, above.

                  then Endwave will grant a non-exclusive and royalty-free
license under any Applications and/or Intellectual Property Rights it owns, or
is permitted to license without ownership (including but not limited to Endwave
Background Works and inventions under Article 20.3 and 20.4), and to Endwave
Know-how and Endwave's part in the Joint Know-how generated in accordance with
Clauses 20.5 (a) and (c), and to the Manufacturing Documentation, to TRW and
Nokia to make or have made, to use and to sell, Parts which are result of
performance under this Agreement, but for no other purpose.

<PAGE>

Development Agreement                                                    15(21)
58 GHz Module                                                          28.1.1999

                       (c) The Parties agree to appoint a mutually agreeable
escrow agent, and agree to execute an Escrow Agreement acceptable to both
Parties and to the escrow agent.

                  Endwave shall deposit the Manufacturing Documentation to a
mutually agreed escrow agent within a period of 30 days from the date of
Certificate of Acceptance and complete the deposit upon any changes to the
Parts.

                  TRW and Nokia shall at any time during normal business hours
have the right to inspect the above-described deposit in order to verify that it
is complete. However such inspections shall be subject to the confidentiality
obligations set forth under this Agreement.

                  Nokia will carry all the cost related to the escrow if NCC
Escrow International, LTD, UK is appointed the escrow agent.

                       (d) Under the circumstances described in subsection 20.6
(b) above the escrow agent shall release to TRW and Nokia the deposit containing
Manufacturing Documentation to the Parts.

                  20.7 Endwave shall settle and/or defend at its own option and
its own expense and indemnify and hold TRW and Nokia harmless from any cost,
expense, loss, attorney's fees or damage arising out of any claim, demand, suit
or proceedings against TRW and Nokia or any customer of Nokia to the extent such
claim, demand, suit or proceedings alleges that the Parts and/or the
incorporation of the Parts in the equipment sold by TRW or Nokia, and/or the use
or sale of the Parts by TRW or Nokia or by any of Nokia's direct customers,
infringes upon any Intellectual Property Right of any third party, provided that
(1) TRW or Nokia informs Endwave in writing of any such claim, demand,
proceedings or suit without delay, (2) Endwave is given control over the defense
thereof and TRW andNokia reasonably cooperate in the defense at Endwave's
expense, and (3) neither TRW nor Nokia will agree with the third party to the
settlement of any such claim, demand, proceedings or suit prior to a final
judgment thereon without the prior written consent of Endwave which consent
shall not be unreasonably withheld. TRW and Nokia shall have the right to select
its own counsel to participate in any such defense at their expense. This
indemnification does not apply to any of the following: (1) infringement by a
combination, made by TRW, Nokia or a customer of Nokia to whom Nokia has
supplied the Parts, of Parts furnished under this Agreement with other products
not furnished hereunder by Endwave unless Endwave is a contributory infringer;
(2) infringement resulting solely from changes or modifications made to or from
the Parts by TRW or Nokia; and (3) infringements by Parts which are made in
accordance with drawings, samples or manufacturing specifications designated by
TRW or Nokia and Endwave proves that such infringements occur according to the
sole design of TRW or Nokia.

                  If a claim, demand, suit or proceedings alleging infringement
is brought or Endwave believes one may be brought, Endwave shall have the
option, at its expense, to (1) modify the Parts to avoid the allegation of
infringement, while at the same time maintaining compliance of the Parts with
the requirements set forth under this Agreement, (2) replace the Parts with
non-infringing but equivalent Parts which comply with the requirements set forth
under this Agreement; or (3) obtain for TRW and Nokia, at no cost to TRW and
Nokia, a license to continue using and exploiting the Parts in accordance with
this Agreement free of any liability or restriction.

                  In the event any Part to be furnished under this Agreement is
to be made in accordance with drawings, samples or manufacturing specifications
designated by TRW or Nokia and is not the design of Endwave, TRW agrees to
settle and/or defend, at its own option and at its own expense and indemnify and
hold Endwave harmless from any cost, expense, loss, attorney's

<PAGE>

Development Agreement                                                    16(21)
58 GHz Module                                                          28.1.1999

fees or damage arising out of any claim, demand, suit or proceedings against
Endwave to the extent such claim, demand, suit or proceedings alleges that the
Parts infringes upon any Intellectual Property Rights of any third party
provided that (1) Endwave informs in writing of any such claim, demand,
proceedings or suit without delay, (2) TRW is given control over the defense
thereof and Endwave reasonably cooperates in the defense at TRW's expense, and
(3) Endwave will not agree with the third party to the settlement of any such
claim, demand, proceedings or suit prior to a final judgment thereon without the
prior written consent of TRW which consent shall not be unreasonably withheld.
Endwave shall have the right to select its own counsel to participate in any
such defense at Endwave`s expense. This indemnification does not apply to
infringement resulting from changes or modifications made to the drawings,
samples, manufacturing specifications or other information designated by TRW or
Nokia unless Endwave can prove that the non-modified parts of drawings, samples
or manufacturing specification or any other information designated by TRW or
Nokia has solely caused the infringement.

                                   ARTICLE 21
                                 CONFIDENTIALITY

                  21.1 Each Party ('Receiving Party') shall not disclose to
third parties nor use for any purpose other than for the proper fulfilment of
this Agreement any technical or commercial information ('Information') received
from the other party ('Disclosing Party') in whatever form under or in
connection with this Agreement without the prior written permission of the
Disclosing Party except information which

                  (a) was in the possession of the Receiving Party prior to
disclosure hereunder as proven by the written records of the Receiving Party; or

                  (b) was in the public domain at the time of disclosure or
later became part of the public domain without breach of the confidentiality
obligations herein contained; or

                  (c) was disclosed by third party without breach of any
obligation of confidentiality owed to the Disclosing Party; or

                  (d) was independently developed, as proven by the written
records of the Receiving Party, by personnel of the Receiving Party having no
access to the information.

                  21.2 In the event any governmental or judicial order requires
the disclosure of Proprietary Information, the recipient of such Proprietary
Information shall promptly but in any event prior to such disclosure notify the
originator of the Proprietary Information of the requirement and provide
reasonable aid and assistance if the originator decides to oppose such
governmental or judicial order. Disclosure will be done only to the extent
required, and subject to confidentiality protection to the extent reasonably
possible. The recipient shall not be liable for any disclosure of Proprietary
Information made pursuant to such governmental or judicial order if it has
complied with the provisions or this paragraph.

                  21.3 The provisions of this Article 21 shall survive the
termination of this Agreement for whatsoever reason.

                                   ARTICLE 22

<PAGE>

Development Agreement                                                    17(21)
58 GHz Module                                                          28.1.1999

                                  FORCE MAJEURE

                  22.1 Neither Party shall be liable to the other for any delay
or non-performance of its obligations hereunder in the event and to the extent
that such delay or non-performance is due to an event of Force Majeure. The
Party affected by an event of Force Majeure shall inform the other Party in
writing without delay of its occurrence, probable duration and cessation.

                  22.2 Events of Force Majeure are events beyond the control of
the Party which occur after the date of signing of this Agreement and which were
not reasonably foreseeable at the time of signing of this Agreement and whose
effects are not capable of being overcome without unreasonable expense and/or
loss of time to the Party concerned. Events of Force Majeure shall include
(without being limited to) war, civil unrest, acts of government, natural
disasters, fire and explosions.

                  22.3 The Party affected by an event of Force Majeure shall
immediately take any necessary measures in order to limit and minimise the
effect of such an event on the performance of its obligations under this
Agreement.

                  22.4 The Party appealing to the occurrence of an event of
Force Majeure is under obligation to prove, upon request, its effect on the
performance of the said Party's obligations under this Agreement.

                  22.5 In the event that the delay or non-performance of either
Party hereto continues for a period of six (6) months due to reasons of Force
Majeure, then either Party shall have the right to terminate this Agreement with
immediate effect without any liability towards the other Party.

                                   ARTICLE 23
                             EFFECTIVE DATE AND TERM

                  23.1 This Agreement shall become valid and effective on the
date of signature hereof and shall remain valid until the signing of the
Certificate of Acceptance and fulfilment of all other obligations hereunder
unless cancelled pursuant to Article 10 or Article 15.5, or terminated pursuant
to Article 24.

                       The obligations set forth in Articles 9, 10, 12, 16, 20,
22, 26 and 26.7 shall survive any such cancellation or termination described in
Article 23.1 above.

                                   ARTICLE 24
                              PREMATURE TERMINATION

                  24.1 In the event that a Party hereto is in default of a
material obligation under this Agreement and fails to remedy such default within
a reasonable time fixed by the non-defaulting Party (which period shall not be
less than thirty (30) days) in a written notice drawing the attention of the
defaulting Party to the default and requiring the same to be remedied, then the
non-defaulting Party shall have the right to terminate this Agreement with
immediate effect after the expiry of the period fixed. In the event of
bankruptcy, receivership or comparable procedure under applicable Bankruptcy
Ordinance, or a change in the majority ownership or majority control of a Party
to a material competitor of a Party hereto or in case the default is not capable
of being remedied then the non-defaulting Party may terminate this Agreement
forthwith.

<PAGE>

Development Agreement                                                    18(21)
58 GHz Module                                                          28.1.1999

                  24.2 In the event TRW terminates this Agreement pursuant to
Article 24.1, such termination shall be without any liability toward Endwave and
Endwave shall have no right to make any claims arising as a result of this
termination against TRW.

                                   ARTICLE 25
                    APPLICABLE LAW AND SETTLEMENT OF DISPUTES

                  25.1 This Agreement shall be governed by the laws of the State
of California, excluding the conflict of laws rules thereof.

                  25.2 Any and all disputes arising out of or in connection with
this Agreement shall be finally settled in arbitration in accordance with the
rules of the American Arbitration Association by three (3) arbitrators appointed
in accordance with the said Rules.

                  25.3 The arbitration proceedings shall be conducted in Los
Angeles, California in the English language. The arbitration award shall be
final and binding on the Parties.

                                   ARTICLE 26
                                FINAL PROVISIONS

                  26.1 Neither Party shall assign or transfer to any third
party, without the prior written consent of the other Party, this Agreement or
any of its share or interest therein. Such consent shall not be unreasonably
withheld in case of the business unit is sold or assignment to an affiliate of
the assigning Party, on condition that the assigning Party shall remain fully
responsible towards the other Party for the proper fulfilment of this Agreement.

                  26.2 This Agreement contains the entire understanding between
the Parties in respect of this matter and all previous correspondence,
memoranda, minutes of meetings, offers, enquiries and other documents exchanged
between the Parties prior to the date of this Agreement shall be cancelled and
superseded by this Agreement.

                  26.3 In addition to this Agreement, the following documents
are hereby made part of this Agreement:

                  APPENDIX 1      Product Pricing

                  APPENDIX 2      Product Definition, Module Test Plan,
                                  Specifications (Nokia)
                  APPENDIX 3      Project Plan, Milestone schedule,

                  APPENDIX 4      Commercial Products Quality
                                  Assurance  Requirements  Document--to be
                                  negotiated at the start of production

                       In case of any discrepancies between the above documents,
the text of this Agreement document shall always prevail over any of the
Appendices or the Schedules thereto. The Appendices shall apply in the order set
forth above.

<PAGE>

Development Agreement                                                    19(21)
58 GHz Module                                                          28.1.1999

                  26.4 Alterations or amendments to this Agreement shall be made
in writing with the signatures of both Parties.

                  26.5 The following persons shall act as the representatives of
the Parties regarding notices, performance, extension, termination and changes
in respect of this Agreement.

                  REPRESENTING ENDWAVE         REPRESENTING TRW
                  Name                         Name David Gee
                  Address                      Address One Space  Park,  Redondo
                                               Beach, CA 90278
                  Telephone                    Telephone 310.813.3377
                  Telefax                      Telefax  310.812.7011

                  ALL SUCH NOTICES OR CORRESPONDENCE SHALL BE TRANSMITTED
BETWEEN THE PARTIES IN WRITING.

                  26.6 No failure or delay of either Party in exercising its
rights hereunder (including but not limited to the right to require performance
of any provision of this Agreement) shall be deemed to be a waiver of such
rights unless expressly made in writing by the Party waiving its rights.

                  26.7 In the event that any provisions of this Agreement shall
be held invalid as contrary to any law, statute or regulation in that regard,
the invalidity of such provision shall in no way affect the validity of any
other provision of this Agreement and each and every provision shall be
severable from each and every other.

                  26.8 The headings used in this Agreement are inserted for
convenience only and shall not affect the interpretation of the respective
provisions of this Agreement.

                  26.9 Endwave shall notify TRW and Nokia of any export control
commodity numbers that apply to the Parts. Nokia agrees that it shall not
knowingly sell, transfer, or deliver, directly or indirectly, any part or
portion of the Products or related documentation supplied by Endwave pursuant to
this Agreement to any person or organisation in any country prohibited by the
U.S. Government (21.1.1999 under 10% restriction Iran, Iraq, Cuba, Syria, Libya,
North Korea, Sudan). Endwave is liable to give TRW and Nokia notice of any
changes in the list of prohibited countries listed above in this Clause 26.9. In
case TRW and Nokia have not received a notice from Endwave concerning any change
in the list of prohibited countries, TRW and Nokia can not be held liable not to
comply with such changes.

                  26.10 RESERVED

                                   ARTICLE 27
                             LIMITATION OF LIABILITY

                  27.1 In case of breach of this Agreement, neither Party shall
be liable to the other for any amount of monies in excess of the monies paid
under this Agreement by TRW to Endwave, except in cases of intentional
misconduct or gross negligence, provided, however, the maximum

<PAGE>

Development Agreement                                                    20(21)
58 GHz Module                                                          28.1.1999

liability of TRW hereunder shall be equal to the damages provided for in Article
16 hereof in the event that TRW fails to [*] as provided in Article 16 hereof.

                  27.2 In case of breach of Article 20.7 (Intellectual Property
Rights indemnity) hereof, and except in cases of intentional misconduct or gross
negligence, neither Party's maximum aggregate liability to the other Party shall
exceed the amount set forth below:

                  (a) For aggregate sales under this Agreement to customers in
the United States, Canada, and Europe, [*], a Party's maximum aggregate
liability to the other Party shall be three times such sales; or

                  (b) For aggregate sales under this Agreement to customers in
the United States, Canada, and Europe, [*], a Party's maximum aggregate
liability to the other Party shall be the [*]; and

                  (c) For sales under this Agreement to customers other than
customers in the United States, Canada, and Europe, a Party's maximum aggregate
liability to the other Party shall be one times the aggregate sales to such
country.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their
duly authorised representatives.

SIGNED FOR AND ON BEHALF OF                 SIGNED FOR AND ON BEHALF OF
ENDWAVE CORPORATION                         TRW INC.

By:  /s/ EDWARD A. KEIBLE, JR.              By: /s/ WESLEY G. BUSH
    --------------------------------            --------------------------------

[*]  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

APPENDIX 1 - Product Pricing

THE PRICING FOR THE [*] PARTS

The Not to Exceed Price for the [*] Parts purchased under the purchase agreement
(as defined in Clause 16) shall be:

                                The cumulative number of
                                Parts purchased in
                                continuous delivery
                                                              Price (in USD)

                                [*]

[*]  CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

<PAGE>

Development Agreement                                                    22(21)
58 GHz Module                                                          28.1.1999

TERMS OF PAYMENT

As defined in Article 12.
<PAGE>

Development Agreement                                                    23(21)
58 GHz Module                                                          28.1.1999

APPENDIX 2                 Product Definition, Module Test Plan,
                           Specifications (Nokia)
                                      [*]
[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPERATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.
<PAGE>

Development Agreement                                                    24(21)
58 GHz Module                                                          28.1.1999

APPENDIX 3                 Project Plan, Milestone schedule,
                                      [*]
[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPERATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.
<PAGE>

Development Agreement                                                    25(21)
58 GHz Module                                                          28.1.1999

APPENDIX 4                 Commercial Products Quality
                           Assurance  Requirements  Document--to  be  negotiated
                  at the  start of production<PAGE>
                                                                   EXHIBIT 10.20

                                SUPPLY AGREEMENT

                                     BETWEEN

                               ENDWAVE CORPORATION

                                       AND

                                    TRW INC.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

<PAGE>

                                TABLE OF CONTENTS

1.       DEFINITIONS.......................................................3
2.       WARRANTIES OF OWNERSHIP...........................................5
3.       SCOPE AND GRANT OF RIGHTS FROM SELLER TO NT.......................5
4.       ORDERING AND DELIVERY.............................................5
5        PRICE PAYMENT AND RISK OF LOSS....................................6
6.       WARRANTY..........................................................6
7.       LIMITATION OF WARRANTY............................................7
8.       ACCEPTANCE........................................................7
9.       INTELLECTUAL PROPERTY INFRINGEMENT INDEMNITY......................7
10.      REGULATORY COMPLIANCE.............................................8
11.      LIMITATION OF LIABILITY AND DAMAGES...............................8
12.      DEFAULT AND TERMINATION...........................................8
13.      CHANGES...........................................................9
14.      FORCE MAJEURE.....................................................9
15.      REPORTS..........................................................10
16.      OUT OF WARRANTY PRODUCT  REPAIRS AND PRODUCT DISCONTINUATION.....10
17.      CONFIDENTIALITY..................................................10
18.      LAWS AND REGULATIONS.............................................11
19.      INDEMNIFICATION AND INSURANCE....................................11
20.      EXPORT AUTHORIZATION.............................................12
21.      CONTRACTUAL RELATIONSHIP.........................................12
22.      NOTICES AND REQUESTS.............................................13
23.      GENERAL..........................................................13
24.      DISPUTES AND GOVERNING LAW.......................................13
25.      YEAR 2000 COMPLIANCE.............................................13
APPENDIX A PRODUCTS AND PRICES............................................15
APPENDIX B SHIPPING AND DELIVERY..........................................17
APPENDIX C QUALITY AND CONFORMANCE........................................18
APPENDIX D AFFILIATES.....................................................20

                                       2
<PAGE>

THIS SUPPLY AGREEMENT ("Agreement") effective March 31, 2000 ("Effective Date")
between Endwave Corporation, a Delaware corporation, having an office at 321
Soquel Way, Sunnyvale, CA 94086 ("Seller"), and TRW Inc., acting through its
Space and Electronics Group, with offices at One Space Park, Bldg. E2/5085,
Redondo Beach, CA 90278 ("TRW").

                                    RECITALS

WHEREAS, effective July 31, 1998, TRW and Nortel Networks Inc. ("NTI") entered
into OEM Supply Agreement WSSM1111 (the "NTI Contract"), whereby TRW agreed to
provide to NTI the Products set forth in this Agreement; and

WHEREAS, TRW entered into intercompany purchase orders (the "MW Orders") with
its then wholly-owned subsidiary, TRW Milliwave Inc. ("MW"), whereby MW would
perform the work under the NTI Contract; and

WHEREAS, on the date hereof, Seller acquired MW; and

WHEREAS, the parties hereto desire to terminate the MW Orders and enter into
this Agreement, which is intended to mimic the NTI Contract and permit Seller to
perform the work under the NTI Contract.

In consideration of the mutual promises and obligations herein contained, and
other good and valuable consideration the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1.            DEFINITIONS

              "Affiliate"  shall mean,  except for NTI, any direct or indirect
              subsidiary  of NTI's parent  company,  Nortel  Networks Limited.
              (See Appendix D)

              "Authorized Distributor" shall mean any company which has signed a
              Distributorship Agreement (or the equivalent) with NTI, granting
              such company the right to distribute one or more of the product
              lines from NTI or Affiliate.

              "Blanket Order" shall mean an Order which does not set forth a
              Delivery Date.

              "Cancellation Period(s)" shall mean the period(s) of time so
              designated in Appendix B prior to the Shipping Date, by which
              point TRW and/or TRW's designee, NTI, may notify Seller to cancel
              a scheduled shipment of Product, which shall end on the Delivery
              Date.

              "Class A Changes" shall mean any changes to a Product required to
              rectify one of the following conditions: (i) a hazardous
              electrical or mechanical condition; or (ii) a condition causing a
              significant loss of service to end-users or inoperability. "Class
              A Change" shall specifically exclude inoperability resulting from
              evolution of standards or standards adaptation on the part of the
              network operator or service provider, unless incorporation of such
              evolution or adaptation has been agreed between TRW and the Seller
              prior to initial delivery.

              "Customer" shall mean NTI's Customer.

              "Confidential Information" shall mean any technical or business
              information relating to the Product, or to Seller's products,
              services or business, including but not limited to,
              specifications, drawings, marketing information, computer
              programs, technical or business information or other data in
              whatever form furnished by either party to the other, whether in
              writing, orally or visually, under this Agreement or to which
              either party has access as a result of performance hereunder, and
              which is designated or marked as being confidential and as further
              defined in Section 17.

                                       3
<PAGE>

              "Consigned Material" shall mean materials or equipment provided at
              no cost by NTI to Seller and used in designing, developing or
              manufacturing the Product.

              "Defect(s) or Defective" shall mean nonconformance to product
              specifications noted in Appendix A and/or common workmanship and
              quality standards.

              "Delivery Date" shall mean the date the Product was delivered to
              the Delivery Location.

              "Delivery Location" shall mean the NTI dock.

              "EDI" shall mean electronic data interchange of information
              related to Orders and Releases.

              "Hardware" shall mean any production items set forth in Appendix A
              and any additional products/enhancements offered for sale by
              Seller as may from time to time be added to Appendix A.

              "Long Lead Material" shall mean material requiring an order lead
              time or commitment of greater than four (4) weeks.

              "Late Delivery" shall mean any delivery date which is beyond the
              contractual shipping requirements.

              "Maximum Delivery Period" shall mean the shorter of (a) the
              Maximum Delivery Period so designated in Appendix B which shall
              commence on the date that Seller receives an Order or a Release or
              (b) Seller's then-current scheduled delivery date(s) for a Product
              at the time of Seller's receipt of an Order or a Release.

              "Minimum Order Amount" shall mean [*]

              "NTI" shall mean Nortel Networks Inc.

              "NTI Contract" shall mean that OEM Supply Agreement, dated as of
              July 31, 1998, between TRW and NTI.

              "Option Period" shall mean a period of three (3) months.

              "Order" shall mean either the physical document, facsimile, or
              electronic transmission ("EDI") used by TRW to order Product under
              this Agreement.

              "Product" shall mean any integrated Hardware set forth in Appendix
              A, which together form a Product.

              "Reconfiguration" shall mean any Product variation or change to a
              previously agreed to Product configuration requested by TRW.

              "Release" shall mean the document issued by TRW pursuant to a
              Blanket Order by which the Delivery Date for Products covered by
              such Blanket Order is established.

              "Rescheduling Period(s)" shall mean the period(s) of time so
              designated in Appendix B prior to the Shipping Date, by which
              point TRW may notify Seller to postpone a scheduled shipment of
              Product.

              "Serious Problem" or "Serious Problems" shall mean problems caused
              by defective Products characterized by (i) Customer system is
              down, or (ii) Customer's day to day business function is
              significantly affected by a defective Product.

              "Shipping Date" shall mean the day the Product is due at the
              Shipping Location and which shall be defined as five (5) business
              days prior to the Delivery Date as specified in each order.

              "Shipping Location(s)" shall mean the location(s) so designated in
              Appendix B, from where the Product shall be shipped by Seller.

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       4
<PAGE>

              "Specifications" shall mean the documents set forth in Appendix A
              to be amended from time to time through mutual agreement.

              "Term" shall mean a period beginning on the Effective Date of the
              Agreement and ending on July 31, 2000, unless the Option is
              exercised.

              "User Manual" shall mean Seller's copyrighted user information
              about a particular "Product", and as revised from time to time by
              Seller.

              "Warranty Period" shall mean the period of thirty six (36) months
              commencing on the date of shipment.

              "Warranty Repair Period" shall mean a period of ten (10) days
              which shall commence on the date that Seller receives any of the
              following from TRW, NTI or Affiliate: (i) Hardware which does not
              conform to the warranty set forth in Section 6.1 if the repair or
              replacement is to be performed at a location of Seller, or (ii)
              notice that Hardware does not conform to the warranty set forth in
              Section 6.1 if the repair or replacement is to be performed at a
              location of TRW, NTI, Affiliate, or Customer.

2.            WARRANTIES OF OWNERSHIP

2.1           Seller warrants that it is either the owner, or is otherwise in
              possession of sufficient licensed rights pertaining to any portion
              owned by third parties, of all proprietary and intellectual
              property rights in and to all Products. Seller further warrants
              that title to all Products shipped to TRW, NTI or Affiliates or
              drop shipped directly to end-user customers of the foregoing shall
              pass to TRW, NTI or Affiliates or an end-user customer, as the
              case may be, free and clear of any liens, charges, encumbrances,
              restrictions or rights against the Products or against Seller.

3.            SCOPE AND GRANT OF RIGHTS FROM SELLER TO TRW

3.1           Subject to the terms and conditions set forth herein, Seller
              agrees to sell and TRW shall have the right to purchase Product
              from Seller at the prices set forth in Appendix A during the Term
              of this Agreement. Seller authorizes TRW and NTI to integrate
              Products purchased under this agreement into NTI products for
              resale to customers.

3.2           During the Term, TRW shall buy from Seller the quantities of
              Products set forth in Appendix A (provided, however, that TRW's
              liability to Seller for failure to purchase the quantities set
              forth in Appendix A shall be limited to the liability NTI paid to
              TRW pursuant to the NTI Contract for failure to purchase the
              minimum quantities thereunder), and Seller agrees to sell TRW the
              quantities of products set forth in such Appendix.

4.            ORDERING AND DELIVERY

4.1           TRW shall only be obligated to issue orders during the Term for
              the contract quantities referenced in Appendix A . In the event
              that TRW provides Seller with a forecast or estimate of the
              quantity that may be ordered, Seller acknowledges that TRW shall
              not be obligated to submit an Order for any portion of such
              forecast other than as defined by the demand pull requirements, or
              as may be required by Appendix A.

4.2           TRW will price orders in accordance with the schedule in Appendix
              A. Appendix A is valid for the Term unless modified by mutual
              agreement.

4.3           TRW may elect to order Products in accordance with a demand-pull
              system as agreed by TRW.

4.4           Seller shall accept any Order issued consistent with any forecast
              provided by TRW (on behalf of NTI or Affliates) provided such
              Order is in accordance with this Agreement. This Agreement shall
              continue to apply to an Order issued during the Term until all
              obligations herein are performed. Notwithstanding that an Order
              does not refer to this Agreement, any Order issued by TRW for the
              Products referenced in Appendix A during the

                                       5
<PAGE>

              Term shall be deemed to have been issued pursuant to this
              Agreement unless the parties expressly agree to the contrary.

4.5           An Order shall set forth a description of the following: (a)
              Product, (b) price, (c) Delivery Location, (d) the location where
              the invoice shall be rendered for payment, (e) method of shipment,
              (f) quantity and (g) Delivery Date. The quantity and delivery date
              will be in accordance with the forecast. An Order or a Release
              shall not be issued for less than the Minimum Order Amount unless
              the parties expressly agree to a lower amount.

4.6           Seller shall have three (3) business days following receipt of an
              Order or a Release to acknowledge to TRW Seller's receipt of the
              Order or Release. The acknowledgment shall either confirm the
              Delivery Date or propose an alternate Delivery Date. If Seller
              recommends an alternate Delivery Date, then TRW shall within ten
              (10) days of its receipt of the alternate Delivery Date notify
              Seller that either the alternate Delivery Date is acceptable or
              that the Order or Release is canceled.

4.7           An Order or a Release shall be delivered complete unless notified
              in writing 3 days prior to shipment. Seller will attempt to ship
              every order complete . In the event that Seller fails to deliver a
              Product by the Delivery Date, TRW may, in addition to any other
              right available to it under this agreement and the law, cancel,
              without charge, the Order or applicable portion thereof.

4.8           Upon providing Seller at least thirty (30) days notice prior to
              the end of the Term, TRW shall have the right to extend the Term
              for the Option Period, in which event TRW and Seller shall have
              the rights and obligations in this Agreement during the Option
              Period, including, TRW's right to purchase at the prices set forth
              in Appendix A.

4.9           TRW may use Electronic Data Interchange "EDI" to issue an Order or
              a Release as agreed by TRW with Seller.

4.10          All preprinted terms and conditions contained in any Order are
              superseded by the terms and conditions of this Agreement.

5             PRICE PAYMENT AND RISK OF LOSS

5.1           Prices set forth in this Agreement (See Appendix A) are (a) in U.
              S. Dollars (b) exclusive of any applicable Product taxes now
              existing or hereinafter imposed by any applicable taxing
              authority, (c) exclusive of the transportation charges and duty
              applicable between the Shipping Location and the Delivery
              Location. Such taxes, transportation charges and duty for which
              TRW is liable shall be separately stated on the invoice. Seller
              agrees not to assess any avoidable excise or sales tax where TRW
              (on behalf of NTI or Affiliate) furnishes Seller a tax exemption
              certificate, a certificate of authority, a direct pay permit
              and/or any equivalent acceptable to applicable taxing authority.
              Payment shall be net forty-five (45) days from the date of the
              invoice or the date of shipment, whichever is later.

5.2           Title and risk of loss or damage to Products shall pass to TRW
              when delivered at the Shipping Location to the carrier designated
              by TRW or if TRW does not designate a carrier, a carrier selected
              by Seller. If TRW returns Products , risk of loss or damage for
              such Products shall pass to Seller when TRW delivers the Products
              to Seller.

5.3           Seller agrees to offer [*] under similar circumstances and
              quantities.

6.            WARRANTY

6.1           Seller warrants that Products manufactured by Seller and sold to
              TRW under this Agreement shall be free from defects in
              workmanship and material for a period of [*] from the date of
              shipment. Further,

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       6
<PAGE>

              Products delivered, except for those repaired under warranty,
              shall contain all new material and shall conform to the
              Specification in all material respects.

6.2           Seller shall, at its sole option and expense repair or replace,
              within ten (10) working days for a Serious Problem in the US and
              within ten (10) working days for a Serious Problem outside the US
              and thirty (30) working days for Defects other than Serious
              Problems, of receipt of TRW's written notice to Seller, any
              defective Product which defects TRW gives Seller written notice
              during the warranty period. Any repair, modification or other such
              service performed by Seller shall be warranted for the remainder
              of the unexpired period of the warranty or for a period of ninety
              (90) days, whichever is longer. If TRW chooses to repair, with
              Seller's agreement, the Product, due to time or expense, Seller
              will reimburse TRW at a mutually agreed price.

6.2.1         No Product shall be returned to Seller without Seller's
              authorization. Seller shall upon mutual agreement replace the
              defective Product at TRW, NTI or Affiliate's end-user customer
              site.

6.3           Any products manufactured by companies other than Seller and
              consigned to the Seller which are included in the Products
              pursuant to this Agreement are warranted by their respective
              manufacturers. Such warranties shall be consistent with the
              Warranty terms and conditions stated herein.

6.4           The warranties set forth herein do not apply to Products that have
              been (i) subjected to misuse, neglect or mishandling other than by
              Seller; (ii) repaired or altered by anyone other than Seller
              without Seller's approval; or (iii) improperly installed.

7.            LIMITATION OF WARRANTY

              THE WARRANTIES IN THIS AGREEMENT ARE GIVEN EXPRESSLY IN LIEU OF
              ALL OTHER WARRANTIES. SELLER MAKES NO OTHER WARRANTIES, EXCEPT AS
              STATED IN THIS AGREEMENT, EXPRESS OR IMPLIED, INCLUDING WITHOUT
              LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
              PARTICULAR PURPOSE. SELLER'S WARRANTY OBLIGATIONS AND BUYER'S
              REMEDIES ARE SOLELY AS SET FORTH IN SECTION 6.

8.            ACCEPTANCE

              All Products are subject to inspection at the Delivery Location.
              Acceptance shall be deemed to occur thirty (30) days after receipt
              of the Product at the Delivery Location unless TRW shall have
              provided Seller with notice of non-acceptance within such period.
              If a Product does not conform to the requirements of an Order or
              to the warranty set forth in Section 6, as the case may be, the
              entire nonconforming quantity of Product delivered must be
              corrected by Seller at Seller's expense. Payment shall neither be
              deemed to constitute acceptance nor be a waiver of TRW's rights,
              in accordance with the terms of this Agreement.

9.            INTELLECTUAL PROPERTY INFRINGEMENT INDEMNITY

9.1           Seller shall indemnify, defend and hold TRW, NTI or Affiliate and
              its Customers harmless from and against any losses, damages,
              liabilities, expenses, judgements, and costs (including reasonable
              attorneys' fees and costs), resulting from any claim alleging that
              any Products infringe any patent or trademark right (Solely with
              respect to Seller's trademarks) of any third party ("IPR"), so
              long as TRW promptly notifies in writing Seller of such claim;
              permits Seller at its sole option, to defend and/or settle such
              claim; delegates to Seller all responsibility and authority for
              the defense and/or settlement thereof and provided further that
              TRW will not incur any liability, cost or expense hereunder
              without Seller's prior written approval. TRW will reasonably
              cooperate and assist in the defense and/or settlement of same at
              Seller's expense. In the event that any Products delivered by
              Seller hereunder are determined to infringe any IPR, Seller shall,
              in addition to its other obligations under this Section 9 and at
              Seller's option, either (i) obtain from such third party, at
              Seller's sole expense, the right for TRW, NTI or Affiliate and NTI
              or Affiliate's customers to continue using the infringing
              Products; (ii) modify or replace the infringing Products at
              Seller's sole expense so as to render them non-infringing, while
              maintaining fit, form and function acceptable to TRW and NTI or
              Affiliate; or (iii) only if neither (i) nor (ii) is reasonably
              available, accept

                                       7
<PAGE>

              return of all infringing Products purchased by TRW and refund to
              TRW the aggregate purchase price paid for all infringing Products.
              In addition, TRW reserves the right at any time to independently
              defend and/or settle such claim at its own expense.

9.2           Seller shall not have any liability to TRW, NTI, its Affiliates or
              their Customers under Section 9.1 for infringement, or claims
              thereof, that are based upon (1) the use of Products in
              combination with hardware, and/or software furnished by a third
              party if such infringement, or claim thereof, would have been
              avoided by the use of Products in combination with different
              hardware and/or software; (2) designs or special requirements
              provided by TRW, NTI or Affiliate to the extent that any such
              claims would have been avoided had not such designs or special
              requirements been implemented by Seller pursuant to TRW's, NTI's
              or Affiliate's requesT; or (3) the application or use of such
              Products unless such application or use was in a manner intended
              by Seller as reflected in Seller's applicable documentation.

9.3           The indemnity obligations under Section 9.1 of this Agreement, as
              qualified by Section 9.2, shall survive the termination or
              expiration of this Agreement.

10.           REGULATORY COMPLIANCE

10.1          TRW and Seller shall negotiate, in good faith, any requirements
              for regulatory approval for Products.

10.2          To the extent applicable, all user manuals or other operator
              manuals and/or written material supplied with the Products shall
              contain any warning notices required by any of the regulatory or
              testing bodies referenced in Section 10.1.

11.           LIMITATION OF LIABILITY AND DAMAGES

11.1          Neither party shall be liable for the respective portion of any
              loss, claim, expense, or damage determined to be caused by,
              contributed by, or arising out of, the acts or omissions of the
              other party or third parties, whether negligent or otherwise. The
              total liability of Seller on all claims whether in contract, tort
              (including sole or concurrent negligence), or otherwise, arising
              out of, connected with or resulting from the manufacture, sale,
              delivery, resale, repair, replacement, or use of Products, or this
              Agreement shall not exceed the value of the Product line or part
              thereof giving rise to the claim in each case, and [*] in the
              aggregate for all claims under this agreement.

11.2          EXCEPT AS MAY BE EXPRESSLY PROVIDED IN SECTIONS 2, 9, 17, AND 19
              IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL,
              INCIDENTAL, CONSEQUENTIAL OR OTHER SUCH INDIRECT DAMAGES
              (INCLUDING, WITHOUT LIMITATION, LOSS OF REVENUES OR PROFITS),
              WHETHER ARISING OUT OF OR AS A RESULT OF BREACH OF CONTRACT,
              WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR
              OTHERWISE.

12.           DEFAULT AND TERMINATION

12.1          Any of the following shall constitute an act of default hereunder:

              a)    The material breach of either party to perform to any term,
                    condition or covenant of this Agreement and such failure has
                    not been corrected within sixty (60) days of the date of
                    receipt of written notice of such breach from the
                    non-defaulting party;

              b)    Either party is or becomes insolvent, or a party to any
                    bankruptcy or receivership proceeding or any similar action
                    affecting the financial condition of the party, or seeks to
                    make a compromise, arrangement or assignment for the benefit
                    of its creditors, or ceases doing business in the normal
                    course; or

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       8
<PAGE>

              c)    The termination of the NTI Contract.

12.2          In the event any act of default shall occur, the party
              not in default shall have the right to terminate this Agreement,
              provided, with regard to subclauses (a) and (b) above only, (1)
              the non -defaulting party provides the other party with no less
              than thirty (30) days notice of such intent to terminate, and (2)
              the default has not been cured within such notice period.

13.           CHANGES

13.1          To satisfy its obligations under Section 6 of this Agreement,
              Seller will upgrade and/or retrofit all items of Product
              requiring Class A Changes due solely to design (for which Seller
              is responsible) or manufacturing defects for a period of [*]
              following the last shipment of any individual Product. Seller
              shall repair or replace Product in such a manner so as to meet
              and/or exceed reasonable Class A field upgrade completion
              schedules , which shall be dictated by the urgency of the problem
              and its affect on end-users.

13.2          TRW shall provide Seller such technical assistance as it
              reasonably requires to identify Class A problems and to decide on
              an economical way of implementing Class A Changes. Notwithstanding
              the foregoing, Seller shall bear the entire cost of redesigning
              Product, implementing, and retrofitting the Class A Change.

13.3          Seller shall cooperate with TRW, NTI or Affiliate in implementing
              all proposed modifications and changes to the Product as follows:

              Seller will advise TRW and NTI of any proposed change to the
              Product which would affect (i) form, fit or function of Product or
              (ii) backward compatibility of the Product from previous versions
              one hundred eighty (180) days prior to proposed implementation and
              will obtain TRW agreement thereto prior to implementation. TRW
              will have ninety (90) days after notification to order pre-change
              product. In the event of change to Product which affects backward
              compatibility, the changed Product shall be identified by
              specifying a different Product number. All notice shall be sent to
              the attention of:

              Nortel Networks
              5550 Skyline Way N. E.
              Calgary, Alberta
              Canada T2E 7Z7

              TRW Inc.
              One Space Park
              Redondo Beach, CA 90278
              Attention:    Judy Hertzberg

13.4          Seller shall cooperate with TRW and NTI or Affiliate in
              implementing all proposed modifications and changes to the Product
              requested by TRW, NTI or Affiliate. Seller agrees to communicate
              to TRW regarding an impact to the price and/or delivery of Product
              directly attributed to the requested modification and/or change
              within five (5) working days from the date TRW requests same.

14.           FORCE MAJEURE

              If the performance of this Agreement (including without limitation
              any deliveries hereunder, but excluding payment for shipped
              Product) is interfered with for any reason or any circumstance
              beyond the reasonable control of the performing party affected,
              including without limitation, fire, act of God, labor unrest, then
              the performing party affected shall be excused from such
              performance on a day - for - day basis to the extent of such
              interference (and the other party shall likewise be excused from
              performance on a day - for - day basis to the extent such party's
              obligations relate to the performance so interfered with);
              provided that the performing

*    CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                       9
<PAGE>

              party so affected shall use reasonable efforts to remove such
              causes of nonperformance; provided, further, that if any such
              interference extends for more than ninety (90) days, the non
              affected party shall have the right, without charge, to cancel the
              Order or Release affected by such interference.

15.           REPORTS

15.1          Seller shall submit to TRW :

              A quarterly and/or monthly report showing all Products ordered by
              and delivered to TRW during the immediately preceding quarter
              and/or month will be provided as agreed upon by the parties.

16.           OUT OF WARRANTY PRODUCT  REPAIRS AND PRODUCT DISCONTINUATION

16.1          Seller shall notify TRW [*] in advance of its intention to
              discontinue manufacture of any Products. The minimum information
              required shall be as follows:

              a)    specific part number involved and description;

              b)    final date for acceptance of an Order or a Release relating
                    to the discontinued Products;

              c)    future availability of spare parts.

16.2          For a period of [*] after Seller gives TRW notice of
              discontinuance of any Product , Seller shall provide repair
              service for all out of warranty Product at Seller's then current
              prices and on Seller's then generally prevailing terms and
              conditions.

16.3          If any Product is returned to Seller by TRW, NTI or Affiliate for
              repair and is subsequently found by Seller to be irreparable,
              Seller shall promptly notify TRW and NTI or Affiliate of such
              finding. Upon request after the provision of such notice, Seller's
              sole obligation shall be to provide TRW and NTI or Affiliate with
              an incremental cost proposal to replace the irreparable Product at
              Seller's then current prices and on Seller's then generally
              prevailing terms and conditions. In the event TRW does not
              exercise such proposal option, then Seller shall be deemed to have
              satisfied its obligations under this Agreement.

16.4          Seller shall assume all risk of loss or damage to any Products
              returned by TRW, NTI or Affiliate to Seller during the time that
              such Products are in the care, custody and control of Seller for
              the purpose of effecting repairs.

17.           CONFIDENTIALITY

17.1          Each of the parties recognizes and agrees that the unauthorized
              use or disclosure of Confidential Information would cause
              irreparable injury to the disclosing party for which it would have
              no adequate remedy at law, and that an actual or threatened breach
              of this section shall entitle the disclosing party to obtain
              immediate injunctive relief prohibiting such breach, to the extent
              it can prove such breach, in addition to any other rights and
              remedies available to it. If Confidential Information is disclosed
              orally, the disclosing party shall notify the receiving party of
              the confidential nature of the Confidential Information at the
              time of disclosure and such Confidential Information shall be
              reduced to writing, marked as confidential and delivered to the
              receiving party within thirty (30) days after oral disclosure.

17.2          For the period during and for five (5) years following the last
              day of the TERM all Confidential Information shall be subject to
              the following:

*    CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
     THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
     THE OMITTED PORTIONS.

                                       10
<PAGE>

17.2.1        The recipient shall restrict disclosure of the Confidential
              Information to recipient's employees with a "need to know" (i.e.
              employees that require the Confidential Information to perform
              their responsibilities in connection with this Agreement) and
              shall not disclose it to any other person or entity without the
              prior written consent of the disclosing party. Each party shall
              safeguard the Confidential Information of the other party with at
              least the same degree of care with which it guards its own
              Confidential Information, but in no event exercise less than
              reasonable standard of care.

17.2.2        The recipient shall use the Confidential Information only for the
              purposes of performing its obligations under this Agreement;

17.2.3        The recipient shall advise those employees who access the
              Confidential Information of their obligations with respect thereto
              and their limited rights to use such information;

17.2.4        The recipient shall copy the Confidential Information only as
              necessary for those employees who are entitled to receive it and
              ensure that all confidentiality notices are reproduced in full on
              such copies; and

17.2.5        The recipient shall return all copies of such Confidential
              Information to the disclosing party at the disclosing party's
              request.

17.2.6        If any Confidential Information is required to be disclosed in
              response to a valid order of the court or lawful request of a
              government agency, the recipient shall first notify the disclosing
              party of the order or request and permit the disclosing party to
              seek an appropriate protective order.

17.3          The confidentiality obligations set forth in this Section 17 will
              not apply to any Confidential Information that:

              a) becomes known to the general public without fault or breach
                 on the part of the receiving party;

              b) the receiving party obtains from a third party without breach
                 of a nondisclosure obligation and without restriction on
                 disclosure;

              c) is furnished to a third party by the disclosing party without a
                 reasonable restriction on such third party's rights;

              d) can by written records be shown to have been known by the
                 receiving party at the time of disclosure; or

              e) is developed independently by the receiving party, and such
                 independent development has been documented in writing.

17.4          Neither party shall publicly disclose any information regarding
              the terms and conditions contained herein without having received
              prior approval, in writing, from the other party.

17.5          The parties shall adhere to any applicable U.S. Government and
              foreign export control laws and regulations and shall not export
              or re-export any technical data or products received or the direct
              product of such technical data except in compliance with the
              applicable export control laws and regulations of the U.S.
              Government and any foreign country.

18.           LAWS AND REGULATIONS

              At no additional charge to TRW, Seller shall comply with and
              obtain all license and permits required by the Product and a
              Product shall be in conformance with all applicable US laws and
              governmental orders and regulations in effect at the time of
              shipment of the Product.

19.           INDEMNIFICATION AND INSURANCE

                                       11
<PAGE>

19.1          Each party (the "Indemnifying Party") shall indemnify and save
              harmless the other (the "Indemnified Party") from any liability or
              claim (including, without limitation, the costs and reasonable
              attorney's fees in connection therewith) that may be made by a
              third party for injury, including death, to persons or damage to
              property arising directly out of the Indemnifying Party's
              negligent acts or omissions in connection with such Party's
              performance of its obligations under this Agreement; provided, the
              Indemnified Party promptly notifies the Indemnifying Party in
              writing of any such liability or claim for which the Indemnifying
              Party is responsible hereunder and does not incur any liability,
              cost or expense hereunder without the Indemnifying Party's prior
              written approval, except in limited emergency circumstances where
              time does not allow for such approval, in which case the
              Indemnified Party shall give the Indemnifying Party written notice
              as much in advance as possible prior to incurring such liability,
              cost, or expense .

19.2          Seller shall maintain during its performance under this Agreement
              General Liability Insurance, including contractual, products
              liability and broad form vendors' property damage endorsement with
              the limits of $2,500,000 combined single limit per occurrence for
              bodily injury and property damage. Seller must provide property
              insurance to cover all consigned NTI material on Seller's premises
              during the term of the Agreement.

19.3          Prior to the commencement of the Term, Seller shall furnish to NTI
              a certificate of insurance evidencing that such insurance is in
              effect. In the event of cancellation or expiration of any
              insurance, Seller shall in such event furnish a new certificate.

20.           EXPORT AUTHORIZATION

20.1          Unless otherwise agreed to by Seller in writing, TRW shall assume
              all responsibility for obtaining any required export
              authorizations necessary to export from the United States any
              Products purchased hereunder or technical data or documents to be
              supplied hereunder by Seller. TRW shall not re-export Products or
              technical data or documentation of such data, to any proscribed
              countries, for which such prohibitions exist pursuant to sections
              of the U.S. Export Administration Regulations unless properly
              authorized by the U.S. Government.

20.2          Seller shall perform all administrative actions required by Seller
              to qualify each Product for preferential treatment under the rules
              of any applicable (current as the date hereof) trade treaty among
              Canada, Mexico and the U.S.A., including, without limitation, the
              North American Free Trade Agreement ("NAFTA"). If a Product
              qualifies under NAFTA, Seller shall prepare and distribute a NAFTA
              Certificate of Origin and any other documents required. Seller
              shall respond to requests for information regarding any NAFTA
              Certificate of Origin and assist TRW and NTI in resolving any
              Product eligibility issues. Seller shall be solely responsible for
              all penalties and costs resulting from a NAFTA Certificate of
              Origin, prepared by Seller, subsequently being determined to be
              invalid.

20.3          If a NAFTA Certificate of Origin is prepared for each shipment,
              Seller shall: (a) retain the original NAFTA Certificate of Origin
              in Seller's files with appropriate backup documentation, (b)
              attach a copy of the NAFTA Certificate of Origin to the
              customs/shipping documents for the qualifying Product, and (c)
              mark the customs/shipping documents with the legend: "Copy of
              NAFTA Certificate of Origin attached."

20.4          If a blanket NAFTA Certificate of Origin is prepared, Seller
              shall: (a) retain the original NAFTA Certificate of Origin in
              Seller's files with appropriate backup documentation, (b) mark the
              customs/shipping documents for the qualifying Product with the
              legend: "Copy of blanket NAFTA Certificate of Origin on file at
              NTI's customs offices in Milton, Ontario (Canada) and in
              Tonawanda, NY (U.S.A.)," and (c) mail copies of the NAFTA
              Certificate of Origin to the following offices:

                                       12
<PAGE>

<TABLE>
<S><C>

Canada:  Nortel Networks Limited  U.S.A.:  Nortel Networks, Inc.  Mexico:       Nortel Networks Limited
         Dept. 1540                        77 Oriskany Drive                    Dept. 1540
         610 Industrial Drive              Tonawanda, NY,                       610 Industrial Drive
         Milton, Ontario,                  U.S.A. 14150                         Milton, Ontario,
         Canada L9T 3H5                                                         Canada  L9T 3H5
</TABLE>

21.           CONTRACTUAL RELATIONSHIP

              Seller and TRW are independent contractors in all relationships
              and actions under and contemplated by this Agreement. This
              Agreement is not to be construed to create, or to authorize the
              creation of, any employment, partnership, or agency relation or to
              authorize TRW to enter into any commitment or agreement binding on
              Seller or to allow one party to accept service of any legal
              process addressed to, or intended for, the other party. TRW shall
              not make any warranties, guarantees or any other commitments on
              behalf of Seller.

22.           NOTICES AND REQUESTS

22.1          All legal notices required or otherwise provided under this
              Agreement except for certificates or documents under Section 20.4
              shall be sent by certified or registered U.S. mail (return receipt
              requested), postage prepaid, or by cable, telegram, facsimile,
              telex or hand delivery to the other party referencing this
              contract, and addressed as follows:

              Seller:               Endwave Corporation
                                    321 Soquel Way
                                    Sunnyvale, CA 94086

              Attention:            Vice President--marketing

              TRW:    TRW Inc.
                                    Telecommunications Products Division
                                    One Space Park
                                    Redondo Beach CA 90278

              Attention:            Subcontracts Manager

              or to such other address as the party to receive the notice so
              designates by written notice to the other party.

22.2          All other communications required or otherwise provided hereunder
              by one party to the other shall be in writing and shall be mailed
              by First Class United States mail, postage prepaid, to the
              following addresses or to such changed address as either party
              entitled to notice hereunder shall have communicated in writing to
              the other party:

              Seller:               Endwave Corporation
                                    321 Soquel Way
                                    Sunnyvale, CA 94086

              Attention:            Vice President--Marketing

              TRW:    TRW Inc.
                                    Telecommunications Products Division
                                    One Space Park Building

              Redondo Beach CA 90278

                                       13
<PAGE>

              Attention:            Subcontracts Manager

23.           GENERAL

23.1          The failure of a party to enforce any provision of this Agreement,
              shall not constitute a waiver of such provision or the right of
              such party to enforce such and every other provision.

23.2          Seller shall not in any advertising, sales promotion materials,
              press releases or any other publicity matters, except to the
              extent required by law or other regulation, use the name of TRW,
              NTI or Affiliate or any variation thereof or language from which
              the connection of said names may be implied without TRW or NTI (as
              the case may be) prior written approval, such approval not to be
              unreasonably withheld.

23.3          Neither party shall assign this Agreement, any Order or any rights
              under either without the written consent of the other party, such
              consent not to be unreasonably withheld.

23.4          Section headings are inserted for convenience only and shall not
              be used to interpret this Agreement.

23.5          This Agreement constitutes the entire agreement between the
              parties with respect to the subject matter hereof and supersedes
              all prior negotiations, proposals, commitments, writings,
              advertisements, agreements and communications of any nature
              whatsoever.

23.6          No provision of this Agreement shall be deemed waived, amended or
              modified by either party, unless such waiver, amendment or
              modification be in writing and signed by the party against whom
              enforcement of the waiver, amendment or modification is sought.

24.           DISPUTES AND GOVERNING LAW

24.1          This Agreement and any orders concluded under this Agreement shall
              be governed and construed in accordance with the laws of the State
              of Texas, excluding its rules with respect to the conflict by
              laws. TRW and Seller exclude the United Nations Convention on
              Contracts for International Sale of Goods from this Agreement or
              any supplemental agreement performed to implement this Agreement.

24.2          TRW and Seller agree to attempt to settle any claim or controversy
              arising out of this Agreement through consultation and negotiation
              in good faith and a spirit of mutual cooperation. Any dispute
              between the parties relating to this Agreement will first be
              submitted in writing to a panel comprised of a senior executive
              from each of TRW and the Seller, who will promptly confer in an
              effort to resolve such dispute. Each party's executive will be
              identified by notice to the other party and may be changed anytime
              thereafter by notice to the other. Any agreed decisions of the
              executives will be final and binding on the parties. In the event
              the executives are unable to resolve any dispute within thirty
              (30) days after submission to them, either party may then submit
              the dispute for arbitration to the American Arbitration
              Association ("AAA") for final decision, pursuant to the Commercial
              Arbitration Rules and Supplementary Procedures for Large Complex
              disputes of the AAA with instructions that the arbitration be
              conducted in the manner set forth in this Section 24.

24.3          Arbitration shall be conducted by three (3) arbitrators. Seller
              shall nominate one (1) arbitrator and TRW shall nominate one (1)
              arbitrator. The third arbitrator shall be agreed upon by the
              arbitrators nominated by Seller and TRW and the arbitrator
              selected by agreement between the arbitrators nominated by Seller
              and TRW shall serve as chairman of the panel. In the event either
              party fails to properly nominate its arbitrator within thirty (30)
              days from the date it receives notice of the request for
              arbitration, such arbitrator shall be appointed by AAA.

24.4          The place or arbitration shall be a neutral location selected by
              the AAA. The arbitration award shall be final and binding on the
              parties, and the parties agree to be bound thereby and to act
              accordingly. The costs of arbitration shall be borne by the party
              or parties as determined by the arbitration award.

                                       14
<PAGE>

24.5          When any dispute occurs and when any dispute is under arbitration,
              except for the matters under dispute, the parties shall continue
              to exercise remaining respective rights and fulfill their
              remaining respective obligations under this Agreement.

25.           YEAR 2000 COMPLIANCE

25.1          Seller represents and warrants that for so long as TRW, NTI or
              Affiliates have any right to use any of the Products provided
              pursuant to this Agreement, when used in accordance with
              appropriate documentation, shall (i) process date and time related
              data without causing any processing interruptions, abnormal
              terminations, or changes in performance characteristics, and (ii)
              shall process and manipulate all date and time related functions
              correctly. Without limiting the generality of the foregoing, all
              Products shall:

              a) correctly handle date and time related data before, during and
              after January 1, 2000, including but not limited to accepting date
              input, providing date output, and performing ongoing operations on
              dates and portions of dates including, but not limited to,
              calculating, comparing and sequencing of dates (in both forward
              and backward operations spanning century boundaries);

              b) correctly handle leap year calculations (including but not
              limited to identification of leap years, interval calculations,
              day-in-year calculations, day-of-the-week calculations, and
              week-of-the-year calculations);

              c) correctly handle all two and four digit date and time related
              input in a manner that resolves ambiguity as to century in a
              disclosed, defined and predetermined manner; and

              d) correctly store, retrieve and provide output of all date and
              time data in a manner that is unambiguous as to century.

                  Seller's obligations under this warranty will be limited to
              (a) replacing (b) repairing (c) adjusting or (d) modifying the
              part or parts, at Seller's sole option, or , at Seller's sole
              option, the Products which prove to not so perform during the term
              of this warranty, provided that TRW or NTI gives Seller prompt
              notice of any defect or failure and satisfactory proof thereof.
              Any defective part or parts must be returned to Seller's
              facilities for inspection. TRW shall prepay all freight charges to
              return any Products to Seller's facilities or any other repair
              facility designated by Seller. Seller shall deliver replacement or
              repaired Products to NTI freight prepaid to the NTI's facilities.
              Products returned to Seller for which Seller provides replacement
              under this warranty shall become the property of Seller. Products
              not manufactured by Seller are warranted only to the extent of and
              by the original manufacturer's warranty. Repaired or replaced
              parts or Products shall remain under warranty for the remainder of
              the warranty period on the Products. This warranty does not apply
              to (a) faulty performance caused by any item that has been
              subjected to misuse, neglect, abuse or accident, or (b) to any
              item that has been altered or repaired by anyone other than Seller
              or Seller's duly authorized representative without Seller's
              written approval. Seller's obligations under this warranty will
              not apply to any Product which (a) is normally consumed in
              operation or (b) has a normal life inherently shorter than the
              Y2000 warranty period stated in this Paragraph 25. TRW's sole and
              exclusive remedies in connection with a breach of this warranty
              are as set forth herein.

26.      TERMINATION OF MW ORDERS

26.1          Seller and TRW agree that this Agreement supersedes and terminates
              in their entirety the MW Orders. Any work with regard to the NTI
              Contract to be performed after the date hereof shall be performed
              pursuant to the terms of this Agreement.

IN WITNESS WHEREOF, the parties hereto have, by their duly authorized
representatives, executed this SUPPLY AGREEMENT as of the Effective Date.

                                    TRW INC.

ENDWAVE CORPORATION

                                       15
<PAGE>

BY: /s/ EDWARD A. KEIBLE, JR.                  BY: /s/ WESLEY G. BUSH
   -----------------------------------------      ----------------------------

NAME: Edward A. Keible, Jr.                    NAME: Wesley G. Bush
     ---------------------------------------        --------------------------

TITLE: President and Chief Executive Officer   TITLE: Vice President
      --------------------------------------         -------------------------

DATE: March 31, 2000                           DATE: March 31, 2000
     ---------------------------------------        --------------------------

                                       16
<PAGE>

                         APPENDIX A PRODUCTS AND PRICES

1.     PRODUCT DEFINITION

          Products currently subject to this Agreement are (i) as described in
          the NTI Specifications for 24GHz Transceiver Equipment, Production
          Phase, Issue 05, Stream 00, dated March 24, 1999 and (ii) as described
          in the NTI Specifications for 26 GHz transceiver equipment, production
          phase, issue 03, stream 00, dated April 13, 1999.

                                       17
<PAGE>

2.     PRICE

         [*]

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       18

<PAGE>

         [*]

4.       ORDER AND DELIVERY PROCESS

         TRW agrees to provide a rolling 12 month forecast to Seller covering 24
         GHz and 26GHz modules. Based on this rolling 12 month forecast, Seller
         and TRW agree to the following terms and conditions for the Modules
         noted;
<TABLE>

            FORECAST PERIOD                            TERMS AND CONDITIONS
<S>                            <C>
         --------------------- ----------------------------------------------------------------------------
         Week 1 - 6            This period shall be referred to as "firm".  During this period the
                               forecasted Order Quantity and Delivery Date cannot change.
         --------------------- ----------------------------------------------------------------------------
         Week 7 - 10           This period shall be referred to as "flexible".  During this period the
                               Order Quantity may change by plus or minus [*] of the quantity forecast
                               but the Delivery Date may not change.
         --------------------- ----------------------------------------------------------------------------
         Week 11 - 52          This period shall be referred to as "open".  During this period the
                               Delivery Date and Order Quantity may be
                               totally altered without cost to NTI.
         --------------------- ----------------------------------------------------------------------------
</TABLE>

         The rolling 12 month forecast provided to Seller by TRW is not a
         commitment to buy. This forecast will be provided on a weekly basis,
         promptly following TRW's receipt of such parallel forecasts from NTI.

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       19
<PAGE>

                        APPENDIX B SHIPPING AND DELIVERY

Shipping Location:   Diamond Springs, CA

Rescheduling Period:       Product may be rescheduled up to 4 weeks prior  to
                           scheduled Shipping Date.

Cancellation Period:       Product may be canceled up to 6 weeks prior to
                           scheduled Shipping Date.

Maximum Delivery Period:   8 weeks

Minimum Order Amount:      [*]

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       20
<PAGE>

                         APPENDIX C QUALITY CONFORMANCE

GENERAL REQUIREMENTS

              Seller shall have in place a CFC free Ozone Depleting Substance
              (ODS) manufacturing facility or at a minimum a Corporate plan to
              achieve a CFC free process by December 31,1998. Seller's products
              or packing materials shall not contain any ODS materials as
              outlined in the Montreal Accord (1990).

PRODUCT AND SUPPLIER QUALIFICATION

1.            Seller, as part of this agreement shall be required to
              collectively meet the requirements of a NTI Qualification Audit.
              This shall be part of the business "partnership" process. TRW, NTI
              or Affiliate agrees to give Seller a minimum of 10 working days
              notice before the audit date.

              It is noted by both parties that while supplier audits are a
              necessary and beneficial business requirement of TRW, NTI or
              Affiliate, it is agreed that the outcome shall not be used to
              directly circumvent or diminish the business agreement except in
              cases of gross product defects, functional failure or delivery
              shortage.

              It is agreed that Seller and TRW, NTI or Affiliate technical and
              management personnel will cooperate fully to achieve the best
              possible results. The report content and frequency shall be agreed
              to at the time of the audit. This audit includes the following
              sections;

1.1           PRODUCT FUNCTION AND REGULATORY CONFIRMATION

              Seller shall be asked to demonstrate the processes, test methods,
              criteria, facilities, equipment and documentation records that
              have been retained to confirm all the requirements outlined in the
              Product Specification have been met.

1.2           MANUFACTURING CAPABILITY AND QUALITY SYSTEM

              Seller shall agree to have its processes for design, procurement,
              manufacturing, testing, delivery, overall quality system and other
              related areas, qualified by TRW/NTI Audit team pursuant to
              standards which are mutually agreeable between the parties.

              Seller shall provide the team access during normal working hours
              to facilities, personnel and records necessary to complete the
              audit.

              TRW, NTI or Affiliate agrees that the audit team shall be subject
              to Seller's normal safety, security and confidentiality
              requirements and shall not unreasonably interfere with the daily
              operations of the business.

1.3           ONGOING QUALITY AND SERVICE OPERATIONS

              Seller agrees to provide NTI or Affiliate with an ongoing quality
              commitment to constantly improve the design, manufacturing
              process, product reliability and service of the product.

              Seller agrees to have implemented and to be able to demonstrate
              the following quality systems;

              A. SELLER CORRECTIVE ACTION PROCESS

              This process provides for an ongoing quality relationship with
              Sellers vendors to record, control and resolve quality issues to
              prevent sub-standard components being installed in the final
              product. The TRW/NT audit team shall review this process and ask
              for related documentation and records.

                                       21
<PAGE>

              Reports not required, but records shall be retained.

              B. NTI OR AFFILIATE CORRECTIVE ACTION PROCESS

              This process provides for the joint management of field returns
              from NTI or Affiliate and the corrective action required to fix
              the problem whether it be caused by design, manufacturing,
              testing, packing, distribution, billing etc.

              Reports are required at agreed intervals outlining the number of
              defective products arranged in accordance to the largest incidence
              of defects. Each line item shall have the corrective action plan
              with the prime person assigned to it and a completion date.

              C. PRODUCT RELIABILITY GROWTH

              During the ongoing manufacture and sale to NTI or Affiliate it is
              expected that as part of a joint commitment to quality products,
              that Seller demonstrate a continual product reliability growth.

              This can be accomplished by design improvements (within the Form,
              Fit and Function of the Product Spec) manufacturing processes, new
              suppliers, or by any means Seller so chooses.

              Reports are required at agreed intervals that illustrate the
              current reliability level, a six month running history record and
              a list of actions that were used to create the growth.

              D. DESIGN MATURITY

              This provides for the reduction of active design changes
              incorporated in products sold to TRW. It is expected that Seller
              have a minimal amount of design changes applied to new and
              especially mature, products, except those to improve performance
              and reduce costs.

              E. KEY MANUFACTURING DATA

              During the facilities audit, TRW, NTI or Affiliate and Seller
              shall agree on the key manufacturing or testing parameters that
              directly determine product quality and reliability.

              As part of a good Statistical Process Control (SPC) process,
              Seller agrees to monitor, maintain and take whatever corrective
              action required to keep these key parameters within the control
              limits. Seller shall agree to notify TRW, NTI or Affiliate within
              two working days of any out of control situation and the steps
              being taken to correct it. Seller shall have in place a system to
              ensure products manufactured during an out of control period are
              not shipped to TRW, NTI or Affiliate until test results have been
              analyzed and permission has been obtained from TRW, NTI or
              Affiliate to ship the product.

              Reports are required at agreed intervals comprising of copies of
              SPC data illustrating the key parameter, it's limits and the
              actual results for the month.

              F. PRODUCT QUALITY (ONGOING)

              SELLER agrees to have in place and to show evidence of use within
              their quality system, workmanship standards that fully represent
              the limits and expectations of the quality attributes of products
              sold to TRW, NTI or Affiliate.

1.4           QUALITY MEASUREMENTS

                                       22
<PAGE>

              1. Seller agrees to respond to written quality concerns
              communicated to Seller by TRW, NTI or Affiliate, following receipt
              from TRW, NTI or Affiliate of appropriate data and suspect
              material, in the following manner:

              a) verbally within five working days; and

              b) in writing within ten working days.

              2. All items of Product supplied shall have an annual accumulated
              customer return rate equal to or [*], reduced to [*] and further
              reduced to [*] after first product shipment.

              3. Seller agrees to monitor and report monthly to TRW and NTI or
              Affiliate Return Rates and a summary of the reasons for failure.
              The parties will cooperate to investigate and resolve quality
              issues related to such reports.

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

                                       23
<PAGE>

                              APPENDIX D AFFILIATES

                         NORTHERN TELECOM INC. COMPANIES

  (NTL PLUS ENTITIES IN WHICH NTL POSSESSES, DIRECTLY OR INDIRECTLY, MORE THAN
    50% OF THE OUTSTANDING VOTING SECURITIES) (THIS LIST DOES NOT INCLUDE "SHELL
    COMPANIES" - THOSE WHICH ARE HOLDING COMPANIES AND HAVE NO EMPLOYEES OR
    WHICH ARE ACTUALLY INACTIVE OR SPECIAL PURPOSE FINANCIAL COMPANIES.
    OWNERSHIP IS 100% UNLESS OTHERWISE INDICATED.)
<TABLE>
<S>                                                  <C>                                <C>
                                                                                         Percentage Ownership
NORTHERN TELECOM COMPANIES                           COUNTRY                                 IF NOT 100%
--------------------------                           -------                            ----------------------
Bell Atlantic Meridian Systems                          USA                                         80.0%
Bell-Northern Research Ltd.                             Canada                                      70.0%
BNR Europe Limited                                      England
BNR Inc.                                                USA
Brock Telecom Limited                                   Canada
Cook Electric Telecomunicacoes S/A                      Brazil
Data 100 (Western Pacific) Pty. Limited                 Australia
Integrated Networks Limited                             England
Matra Communication S.A.S.                              France                                      50.0%
Netas - Northern Electric Telekomunikasyon A.S.         Turkey                                      51.85%
NorTel Australia Pty. Limited                           Australia
Nortel Communications (Israel) Limited                  Israel
NORTEL Communications Systems Inc.                      USA
Nortel Europe S.A.                                      France
Nortel Federal Systems Inc.                             USA
Nortel Limited                                          England
Nortel Matra Cellular SCA                               France                                      66.0%
Nortel New Zealand Limited                              New Zealand
Nortel Post and Telecommunications Technical Inc.       People's Republic of China                  60.0%
Nortel/Dasa Network Systems GmbH and Co. KG             Germany                                     50.0%
Northern Telecom (Asia) Limited                         Hong Kong
Northern Telecom (CALA) Corporation                     USA
Northern Telecom (Dublin) Limited                       Ireland
Northern Telecom (Ireland) Limited                      Ireland
Northern Telecom (Kedah) Sdn. Bhd.                      Malaysia
Northern Telecom (Luxembourg) S.A.                      The Netherlands
Northern Telecom (Malaysia) Sendirian Berhad            Malaysia
Northern Telecom (Northern Ireland) Ltd.                Northern Ireland
Northern Telecom (Penang) Sdn. Bhd.                     Malaysia
Northern Telecom (Portugal) S.A.                        Portugal
Northern Telecom (Puerto Rico) Inc.                     Puerto Rico
Northern Telecom (Thailand) Limited                     Thailand
Northern Telecom AG                                     Switzerland
Northern Telecom Bulgaria EOOD                          Bulgaria
Northern Telecom B.V.                                   The Netherlands
Northern Telecom Canada Limited                         Canada
Northern Telecom Components Sdn. Bhd.                   Malaysia
Northern Telecom de Argentina, S.A.                     Argentina
Northern Telecom de Colombia S.A.                       Colombia
Northern Telecom de Mexico, S.A. de C.V.                Mexico
Northern Telecom de Venezeula Compania Anonima          Venezeula
Northern Telecom do Brasil Industria e Commercio Ltda.  Brazil
Northern Telecom Global Corporation                     Canada
Northern Telecom GmbH                                   Germany
Northern Telecom Inc.                                   USA
Northern Telecom Industries Sdn. Bhd.                   Malaysia
</TABLE>

                                       24
<PAGE>

Northern Telecom International Finance B.V.             The Netherlands

                                       25
<PAGE>

                                AFFILIATES (CONT)

                           NORTHERN TELECOM COMPANIES

  (NTL PLUS ENTITIES IN WHICH NTL POSSESSES, DIRECTLY OR INDIRECTLY, MORE THAN
    50% OF THE OUTSTANDING VOTING SECURITIES) (THIS LIST DOES NOT INCLUDE "SHELL
    COMPANIES" - THOSE WHICH ARE HOLDING COMPANIES AND HAVE NO EMPLOYEES OR
    WHICH ARE ACTUALLY INACTIVE OR  SPECIAL PURPOSE FINANCIAL COMPANIES.
    OWNERSHIP IS 100% UNLESS OTHERWISE INDICATED.)
<TABLE>
<CAPTION>
<S>                                                  <C>                                         <C>
                                                                                                 Percentage Ownership
NORTHERN TELECOM COMPANIES                                    COUNTRY                                 IF NOT 100%
--------------------------                                    -------                            ----------------------

Northern Telecom International Limited                        Canada
Northern Telecom Italia S.p.A.                                Italy
Northern Telecom Japan Inc.                                   Japan
Northern Telecom Korea Limited                                Korea
Northern Telecom Limited                                      Canada
Northern Telecom Maroc SA                                     Morocco                                    60.0%
Northern Telecom N.V.                                         Belgium
Northern Telecom Scandinavia AS                               Norway
Northern Telecom Singapore Pte. Limited                       Singapore
NT Immobilier S.A.                                            France
NT Meridian S.A.                                              France                                     82.0%
Prism Systems Inc.                                            Canada
Shanghai Nortel Semiconductor Corporation            People's Republic of China
Sociedad Espanola de Distribucion de Equipos de
     Telecommunicaciones Northern Telecom, S.A.               Spain
Tong Guang - NorTel Limited Liability Company                 People's Republic of China                 55.0%
TTS Meridian Systems Inc.                                     Canada
Ultel                                                         Azerbaijan                                 51.0%
Vesnet                                                        Kazakhstan                                 51.0%
</TABLE>

                                                           26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]