Document:

CONTRACT TO LEASE

This lease made and  entered  into this 27th day of April,  2000 by and  between
Ellington  Development  Incorporated  with a principal place of business at 3908
North  24th  Street;  City  of  Quincy;  County  of  Adams;  State  of  Illinois
hereinafter  called LESSOR and Spectrian  Corporation  with a principal place of
business at 350 West Java Drive; City of Sunnyvale; County of Santa Clara; State
of California hereinafter called the LESSEE.

                                   WITNESSETH

WHEREAS  LESSOR  is the  owner  of a  group  of  buildings  known  as  Ellington
Development located on Ellington Road near 24th Street, Quincy, Illinois;

WHEREAS  LESSEE  desires  to lease a portion  of the  building  located  at 2515
Ellington Road, Quincy, Illinois further described in Exhibit A, B, C and D from
LESSOR:

NOW  THEREFORE  in  consideration  of  the  rental  herein  reserved  and of the
covenants  and  conditions  hereinafter  contained,  it is  mutually  agreed  as
follows:

1.  Premises - LESSOR hereby leases and demises to LESSEE and LESSEE does hereby
take and accept  from  LESSOR the south  100'W x 120'L  portion of the  building
located at 2515 Ellington Road on the real estate described hereinbelow to wit:

         200' x 398.54' parcel of land located at 2515 Ellington Road, County of
Adams,  State of  Illinois  as more fully  described  in  Exhibits A, B, C and D
attached hereto and made a part hereof, hereinafter called the

"Premises"  TO HAVE  AND TO HOLD THE  SAME,  with  appurtenances,  unto the said
LESSEE for and during the term and at the rental hereinafter set forth.

2.   Term - The Original Term of this Lease will be for two (2) years commencing
     at the  opening of  business  May 1, 2000 and  terminating  at the close of
     business on April 30, 2002.

3.   Option to Renew - LESSOR hereby grants LESSEE two (2) successive options to
     renew this Lease for

<PAGE>

     an  additional  term of 2 years each  commencing  at the  expiration of the
     Original Term or Renewal Term upon the same terms and  conditions  provided
     herein other than for an adjustment of rent as set forth hereinbelow.  Each
     such renewal option shall be exercised in writing,  delivered to the LESSOR
     sixty (60) days prior to  expiration  of the Original Term or prior Renewal
     Term as the case may be.

4.  Rent -

a. Original - LESSEE agrees to pay to LESSOR as rental for the demised  Premises
during  the  Original  Term of the Lease  annually  the sum of  Thirty  Thousand
Dollars  ($30,000.00) lawful money of the United States,  payable in twelve (12)
equal monthly  installments of Two Thousand Five Hundred Dollars  ($2,500.00) in
advance on the first day of each month without  demand.  Rental payments will be
considered  delinquent  if not  received by LESSOR by the Tenth day of the month
and a 5% late charge shall be added to the monthly rental amount due.

b. Option for the First  Renewal Term - LESSEE agrees to pay to LESSOR as rental
for the demised  Premises during the First Renewal Term of the Lease annually an
amount equal to the rent paid by LESSEE for the last year of the  Original  Term
increased by six percent (6%).  Said sum shall be payable in lawful money of the
United  States,  in twelve (12) equal  monthly  installments,  in advance on the
first day of each month without demand.

c. Option of the Second  Renewal Term - LESSEE agrees to pay to LESSOR as rental
for the demised Premises during the Second Renewal Term of the Lease annually an
amount  equal to the rent paid by LESSEE for the last year of the First  Renewal
Term increased by six percent (6%). Said sum shall be payable in lawful money of
the United States, in twelve (12) equal monthly installments,  in advance on the
first day of each month without demand.

d. Security  Deposit - Upon execution  hereof,  LESSEE shall deposit with LESSOR
the sum of Two Thousand Five Hundred Dollars ($2,500) (the "Security  Deposit"),
in cash, as security for the  performance

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<PAGE>

by LESSEE of the terms and  conditions  of this Lease.  Within  thirty (30) days
after the  expiration  or  earlier  termination  of the Lease  term,  or Renewal
Term(s),  if  applicable,  and after Tenant has vacated the  Premises,  Landlord
shall  return to Tenant the entire  security  deposit  except for  amounts  that
Landlord has deducted  therefrom that are needed by Landlord to cure defaults of
Tenant  under the Lease or  compensate  Landlord for damages for which Tenant is
liable pursuant to this Lease.

5. Use - LESSEE  shall  have the right to occupy  and use the  Premises  for any
lawful  purpose  within the zoning  regulations  of the area,  including and not
limited to general warehouse, assembly, office and other uses. Non-containerized
materials  or trash shall not be stored  outside of the  building or against the
interior of the building walls. LESSEE shall have the right to place an exterior
sign on the Premises.  In the event LESSEE installs monument signage in front of
the building,  LESSEE may in its sole discretion,  at its sole cost and expense,
maintain flowers,  rocks,  lighting borders or other enhancing  materials around
the monument signage. LESSEE shall be solely responsible for maintaining in good
condition  its sign and shall  remove it and repair  any  damage  caused by such
removal on or before the  Expiration  Date of the Original Term or Renewal Term,
as applicable.

6. Ingress and Egress - LESSOR warrants that access to the Premises shall at all
times be available by concrete or asphalt  drive.  Parking area for the Premises
shall be the south portion of the parking/dock area extending from the southwest
corner of the building  120' to the north.  LESSEE shall have the right,  during
the  Original  Term and any Renewal  Term  thereof,  to use 26 reserved  parking
spaces which  includes the  handicapped  parking  spaces.  LESSOR shall  provide
adequate  controls to minimize  disruption  of use of these  reserved  spaces by
anyone other than LESSEE.

7.  Repairs, Maintenance, and Alterations -

a.   LESSEE - LESSEE shall maintain and make necessary repairs required by usage
     of interior  and interior  equipment  such as plumbing  fixtures,  lighting
     fixtures,   electrical  outlets,  heating  &  air

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     conditioning  equipment,  including filter changes and routine  maintenance
     and minor  service  of the units from  normal  usage  breakdown  at its own
     expense using  materials and  workmanship in a grade equal to the condition
     existing as of the Commencement  Date.  LESSEE shall have the right to make
     repairs,  alterations,  and  improvements  to the building upon  submitting
     written request to LESSOR, such request shall not be unreasonably withheld.
     LESSEE  shall  maintain  and restore the  Premises to the  condition of the
     building when LESSEE commenced occupancy,  and all alterations,  additions,
     or improvements  made to or put upon the Premises shall become the property
     of the LESSOR and shall remain upon and be surrendered with the Premises as
     a part  thereof.  All work shall be performed so as to keep the Premises at
     all times free and clear of any mechanics  liens or liens from material and
     workmanship,  and if any such liens are imposed upon the  Premises,  Lessee
     shall remove the same within thirty (30) days after it has knowledge of the
     same.  Notwithstanding  anything aforesaid,  LESSEE shall have the right to
     install and remove from time to time and at the end or earlier  termination
     of this Lease,  LESSEE's trade fixtures and equipment and business fixtures
     and  equipment,   to  include,   without  limitation,   office  partitions,
     conveyors, bins, platforms and furniture.  LESSEE shall promptly repair any
     damage to the  Premises  caused by the removal by LESSEE of any of LESSEE's
     property  therefrom  and this  covenant  shall  survive the  expiration  or
     termination of this Lease. LESSEE shall be responsible for snow removal.

b.   LESSOR - The LESSOR shall  maintain and repair at its sole cost and expense
     the exterior of the building, its structure,  roof, all service and utility
     pipes,  wire and lines  located on the  Premises  to the point in each case
     where LESSEE begins its own use of such utility or service. LESSOR shall be
     responsible  for grass mowing and tree and shrub trimming the cost of which
     shall be  reimbursed  by LESSEE but in no event shall exceed Three  Hundred
     Dollars ($300.00) annually.

8. LESSOR's Right of Access - LESSOR,  its agents,  servants and employees shall
have the right to enter the

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<PAGE>

Premises during business hours, with reasonable  frequency,  and upon reasonable
notice of not less  than 24 hours  for the  purpose  of  inspecting  the same to
ascertain  whether LESSEE is performing the covenants of this Lease,  and during
business  hours or otherwise in the event of need,  under  special  arrangements
with  LESSEE  for  the  purpose  of  making   required   repairs,   alterations,
improvements or additions. LESSOR shall be allowed to take all material into and
upon the Premises that may be required  therefore  without the same constituting
an eviction of LESSEE in whole or in part,  and,  except as otherwise  provided,
the rent  reserved  shall in no way abate  while said  repairs are being made by
reason of reasonable  loss or  interruption of the business of LESSEE because of
the prosecution of any such work. LESSOR agrees to cause as little inconvenience
as  possible  to LESSEE in  connection  therewith.  During  the sixty  (60) days
preceding the  expiration of this Lease,  LESSEE shall permit LESSOR or LESSOR's
agents to show the Premises to  prospective  tenants with  reasonable  frequency
during business hours on reasonable  notice and to place and keep in one or more
conspicuous  places  upon the  exterior of the  premises  not  interfering  with
LESSEE's use of the  Premises,  a notice in the usual form "To Let" and a notice
in the usual  form "For  Sale",  which  notices  LESSEE  shall  permit to remain
thereon without molestation.

9.  Destruction  by Fire or Other  Causes,  Insurance - LESSOR shall provide and
maintain  adequate  insurance on the Premises in an amount  determined by LESSOR
against loss or damage by fire,  lightning,  tornado or other  casualty.  LESSEE
shall reimburse to LESSOR the commercially reasonable cost incurred in obtaining
and maintaining this insurance for the demised Premises, which shall not include
any earthquake or flood insurance premiums, deductibles in excess of $10,000, or
co-insurance payments.  LESSEE shall provide all insurance covering its contents
and  personalty  separately.  In the event of damage  to or  destruction  of the
Premises  or a portion  thereof  by fire,  or other  cause so that the  Premises
cannot in the fair estimate of either party be restored  within sixty (60) days,
either party may terminate  this Lease by written  notice given thirty (30) days
after the event; and rents and other sums payable by LESSEE for the remainder of
the term shall

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wholly abate. If the Premises can be restored in sixty (60) working days, LESSOR
will  undertake  immediately  the repair and  reconstruction  of the Premises at
LESSOR's expense and will complete such work with due and reasonable  diligence.
During the period  commencing  with the date the damage occurred and ending with
completion  of  the  requisite  repairs  or  reconstruction,  the  rent  payable
hereunder shall equitably abate and the obligation of the LESSEE to pay the same
shall cease to the extent and in proportion to the area rendered untenantable by
the damage or by the work or restoration or repair.

10.  Liability  Insurance  - LESSEE  shall at all times  during the term of this
Lease carry  public  liability  insurance  covering  the  premises  and LESSEE's
operations,  which  insurance  shall  adequately  insure  against  liability for
personal injury or death and property damage.  Current Certificates of Insurance
showing  evidence of insurance  coverage shall be provided to LESSOR.  Except to
the extent  caused by the  negligence or willful  misconduct  of LESSOR,  LESSEE
shall indemnify and hold harmless  LESSOR from and against all claims,  actions,
demands,  judgements,  damages,  liabilities  and  expenses  suffered  by LESSOR
including  reasonable  attorneys'  fees,  for death of or  bodily  injury to any
person or for loss of,  damage to or  destruction  of any  property  arising  on
account of any action or failure to act by LESSEE in  connection  with  LESSEE's
use of the Premises.  LESSOR shall indemnify,  defend, protect and hold harmless
LESSEE from all losses, damages, liabilities, claims, attorneys' fees, costs and
expenses  arising from the  negligence  or willful  misconduct  of LESSOR or its
agents, contractors, licensees or invitees, LESSOR's violation of any law, order
or regulation, or a breach of LESSOR's obligations or representations under this
Lease.

11.  Utilities,  Taxes - LESSEE shall supply heat to the Premises only and shall
maintain a minimum interior temperature of 40(Degree) F. LESSEE shall at its own
expense pay all charges for water, gas,  electricity and telephone utilities and
services  used in  connection  with the Premises  during the term of this Lease.
LESSOR agrees that all such utilities (including both storm and sanitary sewers)
shall be available  to the Premises at

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<PAGE>

the commencement  date.  LESSOR further  covenants and agrees that potable water
will be  available  to the  Premises  for use by LESSEE  and its  employees.  In
addition,  LESSEE  shall  reimburse  LESSOR the costs of all real  estate  taxes
levied  on the  Premises  annually  for the term of the  Lease  prorated  to the
portion of the building occupied and the term of the lease.

12.  Eminent Domain - If the whole or any part of the Premises shall be taken by
lawful authority for any public or quasi-public use or purpose this Lease shall,
as to the part taken,  terminate  on the date title shall be  acquired,  and the
rent reserved  shall abate  equitably and in proportion to the part so taken and
shall  entirely  abate if the entire  Premises  are so taken.  In all cases of a
partial taking of the Premises  (except a minor street widening not injurious to
the use of the Premises by LESSEE)  LESSEE may, at its  election,  by delivering
written  notice to that  effect to LESSOR,  terminate  this Lease and vacate the
Premises,  and in that event,  the  liability of LESSEE for  performance  of the
Lease shall terminate and come to an end and all rents shall abate.

13.  Quiet  Enjoyment - LESSOR  covenants  and agrees that LESSEE shall have the
quiet and peaceful enjoyment and exclusive possession of the Premises during the
term of this Lease.

14. Default by LESSEE - It is expressly understood and agreed that if default be
made in the  payment  of the rent or any part  thereof as herein  specified,  in
which case LESSEE fails to make such payment  within five (5) days after written
notice of a  delinquency  by LESSOR,  or if default be made in any  covenants or
agreements in this Lease contained on the part of the LESSEE to be performed, in
which case LESSEE fails to perform  within five (5) days after written notice of
a delinquency by LESSOR, in addition to all other rights and remedies  available
to LESSOR,  LESSOR may, if LESSOR elects, at any time thereafter  terminate this
Lease and the term  thereof if fifteen  (15) days after  giving  LESSEE a second
notice in writing  of its  intention  to do so,  LESSEE has failed to remedy the
default,  this Lease and the term thereof shall terminate  expressly and come to
an end on the date fixed in such notice as if said date were the date originally
fixed in

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<PAGE>

this Lease for the termination thereof.

15.  Covenants  - The  parties  agree  that the  promises  of each to the  other
contained herein  constitute  covenants and conditions to the performance of the
other,  and that a breach of one or more such  covenants  and  conditions  shall
constitute a breach of the Lease.

16.  Surrender - LESSEE shall quit and surrender the Premises at the  expiration
of the term in as good order and  condition  as they were when LESSEE  commenced
occupancy, ordinary wear and tear, damage by fire, acts of God or other casualty
and repair and replacement obligations defaulted by LESSOR excepted.

17.  Notices - Any notice  given  pursuant  to this Lease shall be valid only if
given in  writing,  and  shall  be  deemed  sufficiently  given if given by hand
delivery,  or by registered or certified mail with sufficient  postage attached.
Notices to LESSOR  shall be  sufficient  if given or addressed to the person and
place to or at which payment of rent last preceding the time for notice had been
made and received or to:

                           Ellington Development Inc.
                             3908 North 24th Street
                             Quincy, Illinois 62301

Notices to LESSEE shall be sufficient if given or addressed to:

                              Spectrian Corporation
                               350 West Java Drive
                           Sunnyvale, California 94089

The date of any notice  provided  for in this Lease shall be the date of deposit
in the U.S.  mails with  sufficient  postage if given by registered or certified
mail,  or the date of actual  delivery  to the above  address of the party to be
notified if otherwise  given.  The person and place to which notice may be given
may be changed from time to time by written notice to the other,  effective five
(5) days after delivery of such notice.

18. Successors - Covenants and rights herein shall apply to, be binding upon and
inure to the benefit of the parties hereto and their  respective  successors and
assigns.

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<PAGE>

19. Headings - Paragraph  headings are used herein for  identification  only and
shall not in any way affect the interpretation of this Lease.

20. Integration - This Lease states the entire agreement between the parties and
replaces all prior and contemporaneous  agreements documents and representations
with  respect  to  the  subject  matter  hereof.  No  alteration,  modification,
termination,  waiver or release,  in whole or in part, shall be effective unless
in writing,  signed by a duly authorized  representative  of each of the parties
hereto or their successors or assigns.

21.  Third  Party  Rights  -  Nothing  in this  Lease  shall be  interpreted  as
conferring any rights on any party other than the parties hereto.

22.  Counterparts  - This Lease may be  executed in  counterparts  each of which
shall be deemed an original,  but all of which together shall constitute one and
the same document.

IN WITNESS  WHEREOF,  The parties have hereunto set their hands this 27th day of
April, 2000.

ELLINGTON DEVELOPMENT INC                         SPECTRIAN CORPORATION

     /s/ Ray Shortridge                       /s/ Thomas Waechter
----------------------------------       -------------------------------
         President                                President

Attest: /s/ Sheila Morgan                Attest: /s/ Craig S. Hoxsie
       ---------------------------              ------------------------

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<PAGE>

                             FIRST ADDENDUM TO LEASE

         THIS FIRST  ADDENDUM TO LEASE (this  "Addendum") is made by and between
ELLINGTON DEVELOPMENT INC. ("Lessor"),  and SPECTRIAN CORPORATION ("Lessee"), to
be a part of that  certain  Contract  to Lease  between  Lessor and Lessee  (the
"Lease")  concerning  approximately  12,000  rental  square  feet of space  (the
"Premises")  located at 2515 Ellington Road,  Quincy,  Illinois.  All terms with
initial  capital  letters  used herein as defined  terms shall have the meanings
ascribed to them in the Lease unless  specifically  defined  herein.  Lessor and
Lessee agree that,  notwithstanding  anything to the contrary in the Lease,  the
Lease is hereby modified and supplemented as set forth below.

         1) Condition of Premises.  Lessor  warrants and represents  that, as of
         the  Commencement  Date,  (i)  the  Premises,  the  Building,  and  the
         Development will comply with all applicable laws,  rules,  regulations,
         codes, ordinances,  underwriters' requirements,  covenants,  conditions
         and restriction  ("Laws"),  (ii) the Premises will be in good and clean
         operating condition and repair, (iii) the electrical, mechanical, HVAC,
         plumbing, sewer and other systems serving the Premises and the Building
         will be in good  operating  condition and repair,  and (iv) the roof of
         the Building  will be in good  condition  and water tight,  and (v) the
         Lessor Work  described in Exhibit D to the Lease will be completed in a
         good and workmanlike  manner using new materials of good quality and in
         compliance with all Laws. Lessor shall provide,  or cause Lessor's HVAC
         contractor  to  provide,   all  documents   relating  to   preventative
         maintenance  schedules  and repairs to the  existing  HVAC  systems and
         controls  service the  Premises  and the  Building.  Lessor shall allow
         Lessee and Lessee's  designated HVAC contractor to inspect and test the
         HVAC systems and controls prior to execution of this Lease.

         2a) Term. The Lease shall  commence on the later of June 1, 2000,  (the
         "Commencement  Date") or (unless  waived by Lessee in writing) the date
         by which all the following have occurred:  (a) Lessor has substantially
         completed "Lessor Work" in accordance with the Lease and this Addendum;
         (b) Lessor has delivered  possession of the Premises to Lessee; and (c)
         Lessor has obtained  all  approvals  and permits  from the  appropriate
         governmental  authorities  required  for  the  legal  occupancy  of the
         Premises for Lessee's  intended use. If the  Commencement  Date has not
         occurred for any reason  whatsoever on or before July 1, 2000, then, in
         addition to Lessee's other rights or remedies, Lessee may terminate the
         Lease by written notice to Lessor, whereupon any monies previously paid
         by Lessee to Lessor for the Premises shall be reimbursed to Lessee.

         2b) Early Occupancy. Lessor shall permit Lessee to enter and occupy the
         Premises  upon  execution of this Lease,  for the purpose of installing
         its equipment,  data,  telecommunications and cabling systems and trade
         fixtures.  Such occupancy  shall be subject to all of the provisions of
         the Lease,  except the  obligation to pay any monthly rent  thereunder.
         Lessee shall sign up and be  responsible  for all utilities at the date
         of occupancy  and tax and  insurance  charges  shall be prorated to the
         date of occupancy.

         3)   Alterations.   Lessee  shall  have  the  right  to  make  repairs,
         alterations and  improvements  to the building upon submitting  written
         request to Lessor,  such request  shall not be  unreasonably  withheld.
         Upon Lessee's  request,  Lessor shall advise Lessee in writing  whether
         Lessor will require Lessee to remove any  alteration  from the Premises
         upon termination of the Lease.

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<PAGE>

         4)  Hazardous  Materials.  To the  best  knowledge  of  Lessor,  (a) no
         Hazardous  Material is present in the  Building,  at the Premises or at
         the Development or the soil, surface water or groundwater  thereof, (b)
         no  underground  storage tanks are present on the Premises,  and (c) no
         action,  proceeding  or claim is pending or  threatened  regarding  the
         Building or Premises  concerning any Hazardous  Material or pursuant to
         any  environmental  Law. Under no  circumstance  shall Lessee be liable
         for,  and Lessor shall  indemnify,  defend,  protect and hold  harmless
         Lessee, its agents, contractors,  stockholders,  directors, successors,
         representatives,  and assigns  from and  against,  all  losses,  costs,
         claims,  liabilities and damages (including attorneys' and consultants'
         fees) of every type and nature,  directly or indirectly  arising out of
         or in connection with any Hazardous Material present at any time in, on
         or about the Building, the Development, or the soil, air, improvements,
         groundwater  or  surface  water  thereof,   or  the  violation  of  any
         environmental  Law,  except  to the  extent  that any of the  foregoing
         actually results from the release or emission of Hazardous  Material by
         Lessee or Lessee's  Parties in  violation of  applicable  environmental
         Laws.  "Hazardous  Material"  shall mean any  material  which is now or
         hereafter regulated by any governmental  authority which poses a hazard
         to the  environment  or human  health.  Hazardous  Materials  shall not
         include  products  used by Lessee for  typical  office  and  janitorial
         purposes.

         5) Repairs and  Maintenance.  Lessor shall perform and  construct,  and
         Lessee  shall  have no  responsibility  to perform  or  construct,  any
         repair,  maintenance  or  improvements  which  could  be  treated  as a
         "capital expenditure" under generally accepted accounting principles.

         6) Lessor's  Insurance;  Waiver of  Subrogation.  Lessor shall maintain
         "all risk" property  insurance  insuring against risk of loss or damage
         to the  Building  and the  Development  for the full  replacement  cost
         thereof.  Notwithstanding anything in the Lease to the contrary, Lessor
         and  Lessee  hereby  release  each other and their  respective  agents,
         employees,  successors, assignees and sublessees from all liability for
         injury to any  person or  damage to any  property  that is caused by or
         results  from a risk  which  is  actually  insured  against,  which  is
         required to be insured against under the Lease, or which would normally
         be covered  by "all risk"  property  insurance,  without  regard to the
         negligence  or willful  misconduct of the person or entity so released.
         All of Lessor's and Lessee's repair and indemnity obligations under the
         Lease  shall be subject to the waiver  and  release  contained  in this
         paragraph.  Each party shall cause each insurance  policy it obtains to
         provide  that the  insurer  thereunder  waives all  recovery  by way of
         subrogation as required  herein in connection with any injury or damage
         covered by such policy.

         7) Remedies. Lessor shall have no security interest or lien on any item
         of Lessee's  trade  fixtures,  furniture,  equipment and other personal
         property ("Lessee's Property"). Within ten (10) days following Lessee's
         request, Lessor shall execute documents reasonably acceptable to Lessee
         to evidence  Lessor's waiver of any right,  title,  lien or interest in
         Lessee's Property and giving any lenders holding a security interest or
         lien on Lessee's  Property  reasonable rights of access to the Premises
         to remove such Lessee's Property, provided that such lenders repair any
         damage  caused by such  removal.  Lessor  shall use its best efforts to
         mitigate  any damages  resulting  from a default by Lessee,  and Lessee
         shall not in any event be liable for

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<PAGE>

         any damages reasonably mitigable by Lessor.  Lessor waives any right of
         distraint, distress for rent or Lessor's lien that may arise at law.

         8)  Subordination.  The  subordination  of Lessee's rights and interest
         under the Lease to any  mortgage or deed of trust  shall be  contingent
         upon Lessee's having received from any such mortgagee or beneficiary of
         any deed of trust a written  recognition  agreement in form  reasonably
         satisfactory  to Lessee  providing  that  Lessee's  rights and interest
         shall  not be  disturbed  in the event of any  foreclosure  of any such
         mortgage or deed of trust and confirming  that Lessee shall receive all
         of the rights and services provided for under the Lease.

IN WITNESS WHEREOF, the parties have executed this Addendum.

LESSOR:                                     LESSEE:

ELLINGTON DEVELOPMENT INC.                  SPECTRIAN CORPORATION,
an Illinois corporation                     a California corporation

By: /s/ Ray Shortridge                      By:   /s/ Michael Angel
   -------------------------------------         -------------------------------

   -------------------------------------         -------------------------------
Name: Ray Shortridge                        Name: Michael Angel
     -----------------------------------         -------------------------------

   -------------------------------------         -------------------------------

Title:  Presidend                           Title: CFO
       ---------------------------------          ------------------------------

   -------------------------------------         -------------------------------

<PAGE>

                                   EXHIBIT A

                                2515 Ellington Rd

                        General Building Specifications

CONCRETE WORK:
-       Reinforced footing, 3' x 8"D
-       Reinforced foundation 8"W x 3'6"H, 7'H at dock area
-       6''T concrete floor reinforced with one row of 6x6x# 10 wire mesh
-       6"T concrete parking /dock area reinforced with one row of 6x6x#10 wire
         mesh
-       5"T sidewalk

STEEL BUILDING:
-       100' x 200' x 16'EH building with 4' roof extension on south
-       30 lb. Live load/90 MPH wind load
-       /4/l2 pitch roof
-       all  steel framing  members  placed at 25' bay spacing with one interior
        columns at 50'
-       24 ga galvalume standing seam roof panels
-       26 ga. Light Stone painted wall panels
-       26 ga Artic White full height liner panel in manufacturing area
-       gutters, downspouts

DOORS AND WINDOWS:
-       Two (2) 8' x 9' Thermocore overhead door at dock height
-       One (1) 10' x 12' Thermocore overhead door at grade
-       Two (2) 3' x 7' full steel exterior personnel doors
-       One (1) 4' x 7' full steel exterior personnel doors
-       One (1) 3' x 7' full glass main entrance door
-       Eleven (11) 2'W x 6'H fixed insulated glass windows

INSULATION:
-       8"T  Insul-basket  system fiberglass  insulation with white vinyl facing
        in the roof
-       8"T unfaced PEBS fiberglass insulation in the exterior walls

INTERIOR FINISHING:
-       8" full  height  masonry  walls  separating  office,  manufacturing  and
        shipping areas
-       steel stud and painted drywall walls in office area
-       suspended ceiling throughout office area
-       carpet in office area
-       vinyl tile in manufacturing, lunch room and restrooms

HEATING AND AIR CONDITIONING:
-       Four (4) 12.5T 31.4KW electric heat pumps in manufacturing  and shipping
        areas
-       One (1) lOT 31.4 KW electric heat pump with ducts, registers and grilles
        in office area

                                       13
<PAGE>

PLUMBING:
-       One (1) drinking fountain
-       One (1) wash sink
-       Men's  manufacturing area restroom  consisting of one (1) lavatory,  two
        (2) urinals and one (1) water closet
-       Women's manufacturing area restroom consisting of one (1) lavatory,  two
        (2) water closets
-       Men's office  restroom  consisting of one (1) lavatory and one (1) water
        closet
-       Women's office restroom consisting of one (1) lavatory and one (1) water
        closet
-       One (1) sink in lunch room

ELECTRICAL:
-       120/208  volt, 3 phase,  4 wire 600 AMP  electrical  service and 400 AMP
        electrical service
-       8' flourescent lighting in the manufacturing area
-       2x4 layin lighting fixture in office areas
-       Fan-light combination fixtures in office restrooms

                                       14
<PAGE>
                                   EXHIBIT B

                           Map of rooms to be painted

                                       15

<PAGE>
                                   EXHIBIT C

                     Map of southwest quarter of section 18

                                       16

<PAGE>

                                   EXHTBIT D

                                  Lessor Work

         Lessor shall perform the  following  Lessor Work, at Lessor's sole cost
and expense, prior to the Commencement Date:

         1.       Patch and  re-paint  office  walls as  indicated  on the floor
                  plan, Exhibit B

         2.       Strip and re-wax all VCT flooring in the lab area,  restrooms,
                  break room. Replace missing floor tiles.

         3.       Shampoo all office area carpeting.

         4.       Install overhead door as indicated on the floor plan,  Exhibit
                  B.

         5.       Demise the  building  into 12,000 sq. ft. south area and 8,000
                  sq. ft. north area.  Existing  double  doors at two  locations
                  shall have angle iron bolted to the masonry walls securing the
                  areas on both sides.

         6.       The  south  12,000  sq.  ft.  area  shall  have  one  (1)  600
                  amp-metered  service  and  one (1)  400  amp-metered  service.
                  Separate electrical metering and distribution service shall be
                  installed in the north 8,000 sq. ft. area.

         7.       Trim existing landscaping.

                                       17[LOGO]                            GS S/ARRAY
SPECTRIAN                          TECHNOLOGY

                             MANUFACTURING AGREEMENT

                                   Revision 98

This MANUFACTURING  AGREEMENT  (hereinafter  referred to as "Agreement") is made
and  entered  into as of the  date  that  the last  signature  below is  affixed
(hereinafter "Effective Date"), by and between GSS/ARRAY Technology (hereinafter
"Seller"),  having  a  principal  place  of  business  at 94  Moo  1,  High-Tech
Industrial  Estate,   Banland,  Bang  pa-in,  Ayudhaya,   13160,  Thailand,  and
Spectrian,  having  a  principal  place of  business  at 350  West  Java  Drive,
Sunnyvale, CA. 94089 (hereinafter "Buyer").

WITNESSETH:

WHEREAS,  Buyer  desires  to  manufacture  and  sell  Products,   which  include
subassemblies and components (hereinafter "Products"); and

WHEREAS,  Buyer  desires to have  manufactured  and to  purchase  such  Products
further  described in Exhibit A and as mutually agreed upon by both parties from
time to time in accordance with Section 3.2; and

WHEREAS,  Seller  is in  the  business  of  providing  electronic  manufacturing
services  of  high  technology   electronic  equipment  and  Seller  desires  to
manufacture such products further described in Exhibit A;

NOW THEREFORE, in consideration of the premises and undertakings hereinafter set
forth, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree as follows:

1.0 TERM

The term of this  Agreement  shall  commence upon the Effective  Date, and shall
continue for twelve (12) months,  shall automatically renew for another 12-month
period unless either party gives the other party 30 (thirty) days written notice
of its intent not to renew this  Agreement  or until  either  party gives thirty
(30) days advance notice of its intent to terminate pursuant to section 11.0, or
until all the products are delivered by the Seller.

2.0 TERMS OF SALE

2.1     Orders.

During the term of this Agreement,  Seller shall sell to Buyer,  and Buyer shall
purchase  from  Seller,   the  Products  as  identified  in  Exhibit  A.  It  is
contemplated  that the  ordering  of  Products  shall be by means of  individual
purchase  orders and  amendments,  which are issued  from time to time by Buyer.
Each purchase order shall specify the quantity,  model number and description of
Products to be purchased.  Upon acceptance by Seller,  each purchase order shall
constitute  a firm and binding  contract,  consisting  of the terms of: (1) this
Agreement,   (2)  exhibits  to  this  Agreement,  (3)  any  terms  conspicuously
typewritten on the face of the purchase order that are not inconsistent with the
terms of this Agreement,  and (4) any terms in Seller's written  acceptance that
are not  inconsistent  with  this  Agreement.  Such  terms in  Seller's  written
acceptance  are subject to review end  acceptance  by Buyer.  Seller will notify
Buyer of the acceptance or rejection of an

                                                                               1

        350 West Java Drive > Sunnyvale, CA 94089 > Phone 408-745-5400
         Corporate Fax 408-541-0258 > Human Resource Fax 408-541-0260 >
                       Sales & Marketing Fax 408-541-0263

<PAGE>

order within five (5) business days of its receipt.  This  Agreement  sets forth
the terms and  conditions  applicable  to all purchase  orders issued during the
term of this Agreement,  irrespective of whether this Agreement is referenced by
the purchase orders. The terms and conditions of this Agreement replace in their
entirety  any and all of the  pre-printed  purchase  order terms and  conditions
appearing on Buyer's purchase order forms or Seller's written acceptances.

2.2     Precedence.

In the event of any conflict  between the terms of this  Agreement and the terms
of any exhibit or purchase order, the order of precedence is as follows:

     (1) The terms of this Agreement;
     (2) The terms of any exhibits to this Agreement
     (3) The terms on the face of Buyer's purchase order.

2.3 Increases, Rescheduling and Cancellation.

(a) Buyer shall provide  Seller with purchase  orders  covering a minimum of the
first (3) weeks of the forecast.  The delivery  schedule for Products covered by
blanket  purchase  orders is controlled  via the  forecast.  Buyer shall provide
Seller,  on a weekly or  bi-weekly  basis,  a written (6) to (12) month  rolling
forecast of products to be released.  In any week which Buyer does not provide a
forecast,  the  prior  forecast  issued  by Buyer  shall be  considered  for the
purposes of this  agreement as having been issued  during the then current week.
The forecast is stated in weekly increments for the first (12) weeks and monthly
(or weekly) increments thereafter.

(b) Buyer may  increase,  reschedule,  or cancel the  quantity  of any  Products
specified in a purchase order by delivering to Seller,  by mail or facsimile,  a
written  change order in accordance  with the  provisions of section  2.3(a)-(e)
(hereinafter  "Change  Order").  No Change Order shall be effective  until it is
actually received and accepted by Seller's authorized  representative.  However,
if Seller  fails to  acknowledge  acceptance  or provide a counter  offer of the
Change Order within (5) business days  following  its receipt,  then such Change
Order shall be presumed to be unconditionally accepted by Seller.

(c) The first (8) weeks of Buyer's Forecast for a Product shall become a binding
commitment,  provided Seller  confirms its ability to meet such forecast.  Buyer
may  increase  or  decrease  quantities  of  forecasted  product,  with  advance
notification pursuant to the requirements of Section 2.3(b) and adjustments,  as
specified below:

     Weeks of Advance                  Ceiling for             Ceiling for
      Notification                  Percentage Increase    Percentage Decrease
      ------------                  -------------------    -------------------
0 (occurs during current week)         10%                         0%
       1-2 weeks                       25% (See note 1)            0%
       3-8 weeks                       25% (See note 1)           40%
       9-12 weeks                      50%                       100%
       13-16 weeks                     125%                      100%
       >16 weeks                       Unlimited                 100%

At Buyer's risk, Seller is authorized to:

1.   Stock (1) week  (average of first (8) weeks of rolling  forecast) of Buffer
     FGI for all forecasted

2.   Products.  Buyer may request  increases  greater  than 25% during weeks one
     through four under conditions  where the authorized  quantity of Buffer FGI
     covers said increases.

3.   Carry a mutually  agreeable (in writing)  level of piece part  inventory to
     enable  Seller's  response to  allowable  schedule  increases.  Seller must
     identify in a separate attachment (Exhibit F, Buffer Inventory) those parts
     which are required to meet the first 8 weeks of forecast flexibility.

Supplemental  Note:  Buyer  is not  responsible  for  any  material  beyond  the
forecasted, first (8) weeks unless

                                                                               2
<PAGE>

Seller identifies in Exhibit G, Long Lead Materials (and obtains Buyer's written
concurrence)  the price and lead times of long lead parts  necessary to meet the
forecasted  volume  beyond the (8) week  window.  Buyer  shall pay Seller 1% per
month carrying charge for Buffer Inventory.  There is no carrying charge for the
authorized Buffer FGI.

(d) In the event of Buyer's  cancellation  of a forecasted  Product for a reason
other  than  Seller's  breach  of the  terms of this  agreement,  all  completed
products,  assemblies in process,  components and any tooling,  test and burn-in
equipment  owned by Buyer and  furnished  to Seller,  shall be  disposed  of, at
Buyer's  expense in  accordance  with written  instructions  furnished by Buyer.
Furthermore, in the event of such cancellation, Buyer shall:

1.   Purchase all finished products and work-in-process materials. For any model
     (Part Number), the quantity of items shall not exceed the equivalent of the
     first  (3)  weeks of  scheduled  forecast  plus the one week of  authorized
     Buffer FGI.

2.   Purchase any materials  (including only the material mark up per Exhibit B)
     which were procured by Buyer in accordance with the forecast, which are not
     usable on other products  manufactured  by Seller and are not cancelable or
     returnable to the vendor.  This  liability is limited per the provisions of
     2.3c.

3.   Subject to the  limitations  of paragraph  2.3c,  reimburse  Seller for any
     reasonable  cancellation  and/or related costs from its vendors as a result
     of Buyer's  cancellation.  Seller must exercise "best in class" procurement
     practices in attempting to cancel orders and/or minimize Buyer's liability.

3.0 STATEMENT OF WORK

3.1 Manufacturing Standards

Products  shall be  manufactured  and  assembled  in  compliance  with  Seller's
workmanship standards and Buyer's specifications, IPC-610B Class II and meet the
Buyer's quality control practices and standards.  If Buyer's  specifications and
Seller's  workmanship  standards  conflict,  Buyer's  specifications  shall take
precedence.  Buyer may request that Seller purchase  specific  material or parts
for the  manufacture  or assembly of the Products,  or change the  manufacturing
process.  Adjustments,  if any,  to the  price  of the  Products  caused  by the
requirement to use a specific part, material,  or manufacturing  process must be
agreed upon by Buyers in advance, in writing.

3.2 Specifications

Buyer  shall   provide   Seller  with  all   Specifications   except  where  the
specifications  are standards  issued by a national or  international  standards
body. From time to time,  Buyer and Seller may agree to add additional  Products
to this Agreement by attaching an Addendum to the Exhibits  containing  required
specifications and price information, which is signed by both parties.

3.3 Configuration Control.

Seller shall not make or incorporate  any change in the  specifications  for the
Products which affects form, fit,  function,  regulatory  approvals,  interface,
interchange-ability,   reliability  or  maintainability  without  prior  written
approval  of Buyer,  which  approval  shall not be  unreasonably  withheld.  All
components used in production of Buyer's Products are listed on Buyer's Approved
Vendors List (hereinafter  "AVL"), with Buyer's part number and approved vendors
for that component.  It is the  responsibility of Seller to obtain an up-to-date
copy of the AVL.  Seller must put systems in place within its quality  system to
ensure that all components  purchased for use in production of Buyer's  Products
are in compliance with the AVL. Material  purchased by Seller or any third party
purchasing agent on behalf of Seller that is at variance with the Buyer's AVL is
explicitly  prohibited.  Seller  is  accountable  for any  and  all  liabilities
resulting  from  unauthorized  deviations  from  Buyer's AVL or quality  control
requirements.

                                                                               3
<PAGE>

4.0 CHANGES

4.1 Seller Changes.

(a) Seller shall not incorporate any engineering  change to the Products without
Buyer's  prior  written  consent.  Seller shall notify Buyer of any  engineering
change  proposed  by  Seller  to  the  Products,  and  shall  supply  a  written
description of the expected  effect of the  engineering  change on the Products,
including  the  possible   effect  on  price,   performance,   reliability   and
serviceability  as part of the proposed  engineering  change and any anticipated
costs for obsolete materials. Buyer, at its discretion, may elect to incorporate
or not to  incorporate  any  Seller-proposed  engineering  change to the Product
design  and shall  notify  Seller of its  decision  within 30  (thirty)  days of
receipt of  Seller's  proposal.  If any  Seller-proposed  engineering  change is
accepted by Buyer and is  incorporated  into the  Product  design  resulting  in
reduced  Product  price,  Seller  and Buyer  will  share in the  resulting  cost
savings,  based on the following schedule (days are represented as calendar days
following Buyer's approval):

            0   - 60 days       100% to Seller
           61   - l20days       50% to Seller: 50% to Buyer
          121   - 180 days      25% to Seller: 75% to Buyer
        after   180 nays        100% to Buyer

(b) If a  Seller-proposed  engineering  change is accepted by Buyer, the parties
agree to amend the unit price and pending  purchase order  accordingly,  and the
new product price shall apply to all Products delivered  hereunder which include
the Seller-proposed engineering change.

(c) Seller  agrees that any and all  Seller-proposed  engineering  changes shall
belong to and be the property of the Buyer. Once the proposed engineering change
is accepted by Buyer,  Buyer assumes all liabilities  for the change  (including
obsolete materials  previously  identified by Seller) as if it had been proposed
and adopted by the Buyer.

4.2 Buyer Changes.

(a) Buyer may make engineering  changes to the Products from time to time during
the term of this  Agreement by written  notification  to Seller  describing  the
details of the engineering  change.  Drawings,  designs,  and/or  specifications
required for the change shall also be supplied by Buyer.  Buyer shall assume all
liability for obsolete  materials and products as if such changes  resulted from
the Buyer's  cancellation of its forecast  pursuant to Section 2.3(c).  Once the
parties  have agreed  upon any  resulting  unit price  change as  determined  in
Section 4.2(b),  Seller shall incorporate the proposed  engineering  change into
the  Products on a schedule  to be agreed to by the  parties.  Seller  shall not
proceed to implement any proposed  engineering  change without  Buyer's  written
authorization.

(b) Within fifteen (15) days of Buyer's  notification of a proposed  engineering
change,  Seller shall provide Buyer with a written  quotation which includes any
proposed  increase or decrease  in the unit price of the  Products  and a costed
summary of  obsolete  material.  The parties  shall make a good faith  effort to
agree upon any change  which may apply to the unit price of the  Product  within
thirty  (30)  days  from  the  date  of  Buyer's  notification  of the  proposed
engineering change, and this Agreement shall be amended accordingly.

5.0 AUTOMATIC TEST EQUIPMENT, TOOLING AND TEST FIXTURES

5.1 Tooling and Test Fixtures

Upon written  authorization by Buyer, Seller shall order and purchase for Buyer,
at Buyer's expense, all of the process tooling, assembly tools and test fixtures
necessary or appropriate to manufacture the Products, except for tools consigned
by Buyer  and  listed  on  Exhibit  D.  Seller  shall  submit  any  request  for
authorization to

                                                                               4
<PAGE>

purchase tooling and test fixtures to Buyer, in writing.  At Buyer's option,  it
shall provide Seller with the process tooling,  assembly tools and test fixtures
from Buyer's  existing  supplies of those  items.  Buyer shall grant or deny the
request in writing  within  fifteen (15) days after the date of the request.  If
Buyer does not  respond to Seller  within the  prescribed  period or  delivers a
timely denial of any request,  then any purchase orders for the periods affected
shall be  appropriately  adjusted by the  parties.  Seller's  receipt and use of
Buyer-approved  tooling and test fixtures shall be deemed as Buyer's  acceptance
of the process  tooling,  assembly tools and test fixtures.  Upon termination of
this  Agreement  or upon  Buyer's  written  request,  Seller shall ship to Buyer
F.O.B.,  Seller's  Manufacturing  Plant, and at the expense of Buyer, all of the
design drawings, "as-built" drawings, process tooling and test fixtures paid for
by the Buyer or  consigned to Seller.  Notwithstanding  the  foregoing,  process
tooling,  assembly tools,  test fixtures,  and all intellectual  property rights
with respect to such tooling and test fixtures which are developed solely at the
expense of Seller in connection with  performance of this Agreement shall be the
property of the Seller.

5.2 Automatic Test Equipment

Beginning  in Q4 of 1998,  Seller  will  consider  Buyer's  request  that Seller
purchase  automatic  test equipment  (ATE) required to manufacture  products for
Buyer.  Seller  will  make a  proposal  to Buyer  as to how the cost of said ATE
equipment would be recovered by Seller.

5.3 Protection of Equipment

Regardless of whether equipment is owned by Buyer or Seller, all equipment which
is in the physical custody of Seller shall be adequately  protected against loss
or damage.  Seller is responsible  to maintain  insurance for said equipment and
all repair, maintenance, and calibration expenses.

6.0 PURCHASE PRICE AND PAYMENT TERMS

6.1 Purchase Price.

The prices for the Products are listed on the attached Exhibit B. If, during the
term of this  Agreement,  changed  prices are put into effect by mutual  written
agreement  of the parties;  such prices shall apply only to all purchase  orders
issued by Buyer after the effective date of the changed prices.

6.2 Payment Terms.

The purchase price for the Products,  and all other related charges contemplated
by this  Agreement  shall be due and payable thirty (30) days after the later of
(i) the date of Seller's  invoice or (ii) the date of  shipment of the  Products
and shall not be subject to any set-off claims of Buyer.

6.3 Sales and Use Tax.

Buyer  shall pay all  applicable  sales or use taxes,  or provide  Seller with a
resale tax  certificate  to support any  exemption.  If the  Products  are to be
exported  after  delivery  to Buyer,  Buyer  shall  arrange  for  payment by its
customer(s) or end-user(s)  of all applicable  import duties at the  destination
country.

7.0 PACKAGING, SHIPPING AND DELIVERY

                                                                               5
<PAGE>

7.1 Packaging.

All Products  shall be packaged for shipment so as to protect the Products  from
loss  or  damage,  in  conformance  with  good  commercial   practice,   Buyer's
specifications, government regulations and other applicable standards.

7.2 Shipping.

All  shipments  shall be made  F.O.B.  Seller's  Manufacturing  Plant,  Title to
Products and risk of loss, damage or destruction shall pass from Seller to Buyer
upon Seller's  delivery of the Products to the common  carrier  specified by the
Buyer, or, if no instructions are given, Seller shall select the least expensive
carrier.  Any such loss,  injury or destruction shall not release Buyer from any
obligation under this Agreement.

7.3 Delivery.

(a) All orders shall be shipped  complete.  Seller shall  immediately give Buyer
oral and  written  advice  of any  prospective  failure  to ship  the  specified
quantity of Products in time to meet the scheduled  delivery date. Should only a
portion of the Products be available for shipment by the delivery  date,  Seller
shall consult with Buyer to obtain  authorization to make a partial shipment and
to obtain  delivery  instructions.  Where Buyer  allows  Seller to make  partial
shipments,  the shipments shall be applied against completion of the oldest open
order first.

(b) If Seller  ships any  Product  by a method  other than as  specified  in the
corresponding  purchase  order,  Seller shall pay any resulting  increase in the
cost of freight incurred over the cost of freight which would have been incurred
had Seller complied with Buyer's shipping instructions.

(c) If, due to Seller's failure to make a timely shipment,  the specified method
of transportation  would not permit Seller to meet the scheduled  delivery date,
the Products affected shall be shipped by air  transportation or other expedient
means  acceptable to Buyer.  Seller shall pay for any resulting  increase in the
freight  cost over that  which  Buyer  would  have been  required  to pay if the
specified method of transportation was used.

(d) If Seller ships more Products than ordered in the purchase order, the amount
of  over-shipment  may,  at Buyer's  option,  either be kept by Buyer for credit
against  future  shipments  or returned to Seller at Seller's  risk and expense,
shipped FOB Origin. If Buyer elects to keep the over shipment,  payment for such
overshipment  shall be due 30  (thirty)  days  from the later of (i) the date of
invoice,  (ii) the date of shipment and (iii) the date of the Buyer's acceptance
of the overshipment.

(e) Seller shall obtain  Buyer's  approval  before making any delivery more than
five (5) working days prior to the scheduled delivery date. If Seller ships more
than three  working  days in  advance of the  scheduled  delivery  date  without
Buyer's  approval,  Buyer may return the Products to Seller at Seller's risk and
expense and Seller  shall  re-ship the  Products  when due at Seller's  risk and
expense. If the Buyer elects to keep the advance shipment,  the payment for such
advanced  shipment  shall be due 30 (thirty) days from the later of (i) the date
of invoicing, (ii) the date of shipment or (iii) the date of acceptance by Buyer
of the advance shipment.

8.0 INSPECTION AND ACCEPTANCE

8.1 Inspection.

All items shall be subject to inspection by Buyer at its expense  within fifteen
(15) working days after Buyer  receives a shipment of the Products  from Seller.
Failure to inspect the Products within such time frame shall constitute a waiver
of Buyer's right to inspect prior to payment and shall also  constitute a waiver
of any defect or quantity shortages that reasonable  inspection prior to payment
would have revealed.  None of these  provisions shall be interpreted as limiting
Buyer's  right to seek redress  against  Seller for products  that prove

                                                                               6
<PAGE>

to be defective in subsequent use by Buyer or Buyer's eventual  customers due to
causes reasonably under Seller's control.

8.2 Acceptance.

Acceptance of the Products  shall be based upon  compliance of the Products with
Buyer's specifications. The Products shall be deemed irrevocably accepted unless
Buyer gives Seller  written  notice of the failure  within  thirty) (30) working
days of receiving the Products from Seller unless such  deviation of the Product
from the  Buyer's  specifications  would  not be  reasonably  determinable  from
Buyer's inspection.

8.3 Rejection.

Buyer  shall  give  Seller  written  notice  of any  rejection  based  upon  the
condition,  quality,  quantity  or grade of the  Products.  Failure to give such
written  notice  within  thirty (30)  working days of receipt  shall  constitute
irrevocable  acceptance of the Products.  If Buyer  provides the written  notice
specified in Section 8.2 and rejects Products within the thirty (30) working-day
acceptance  period.  Seller, at its sole option,  shall either repair or replace
any   Products   which   fail  to  meet  the   contractually   imposed   Product
specifications. Seller agrees to pay all shipping costs related to the return of
such  Products to Seller and the  shipping  costs  related to  redelivering  the
replacement  Products to Buyer and/or  Buyer's  customers.  The mode of shipment
shall be via a standard commercial carrier.

9.0 WARRANTIES, REMEDIES AND LIMITATION OF LIABILITY

9.1 Warranty.

Seller  warrants that each Product shall be free from defects in workmanship and
materials  and shall have been  produced in  accordance  with the  manufacturing
processes specified by Buyer and shall conform to the Product specifications for
twelve (12) months from the date of delivery to the Buyer.  During such warranty
period,  Seller  shall,  at its sole  discretion  and at its expense,  repair or
replace the defective Products.

9.2 Limitation of Warranty.

EXCEPT AS EXPRESSLY  STATED IN SECTION 8.1 AND 9.1, SELLER HEREBY  DISCLAIMS ANY
EXPRESS  OR IMPLIED  WARRANTIES,  INCLUDING,  BUT NOT  LIMITED  TO, ANY  IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.  SELLER SHALL
NOT BE RESPONSIBLE FOR ANY DEFECT CAUSED BY PRODUCT MISUSE.

9.3 Limitation of Liability.

(a) Seller's entire  obligation  under this warranty is exclusive to Buyer,  and
shall be limited to repair or replacement of any parts or Product,  of which the
Buyer gives the Seller written notice as defective  within the warranty  period.
Buyer shall be entitled to a remedy  hereunder  only if it notifies  Seller,  in
writing,  of the alleged breach of warranty within a reasonable  period,  not to
exceed thirty (30 working) days,  after Buyer discovered or has been informed in
writing of a defect in workmanship or materials.

(b) UNDER NO CIRCUMSTANCES  SHALL EITHER PARTY BE LIABLE TO THE OTHER, OR TO ANY
OTHER PERSON, FOR SPECIAL,  INDIRECT,  INCIDENTAL OR CONSEQUENTIAL DAMAGES BASED
UPON BREACH OF WARRANTY, BREACH OF CONTRACT, TORT, STATUTORY CLAIM, OR ANY OTHER
LEGAL THEORY PERTAINING TO ITS PERFORMANCE UNDER THIS AGREEMENT.

                                                                               7
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10.0 INDEMNIFICATION

10.1 Seller Indemnification.

Seller represents and warrants that the manufacturing  processes employed in the
manufacture  of the  Products do not  infringe on any patent,  trademark,  trade
secret,  copyright or other  proprietary right and that Seller is unaware of any
claim of infringement, either threatened or pending. Seller agrees to indemnify,
defend and hold Buyer harmless from and against any claim for such infringement.
In the event that any such process is found to so infringe, Seller shall, at its
option and sole expense, either make such process non-infringing and replace the
infringing Products at its sole expense, or shall procure the rights to continue
to use  such  infringing  process.  The  foregoing  remedies  are the  sole  and
exclusive remedies of the Buyer in the event of an infringement. Buyer shall not
be entitled to recover from Seller any lost  profits or any other  consequential
damages suffered as a result of such infringement or alleged infringement. It is
agreed that Seller shall undertake the defense of any such claim through counsel
of its own choice and at its expense.  However,  the  provisions of this section
shall not apply with  respect to any claim of patent,  trademark,  or  copyright
infringement   made  solely  with  respect  to  the  incorporation  of  specific
components into the Products at the express  direction of Buyer,  including such
incorporations made in express compliance with Product specifications.

10.2 Buyer Indemnification.

(a) Buyer  represents  and warrants that it owns, or has the legal right to use,
the designs and  specifications  needed to  manufacture  the Products,  that the
designs and  specifications  do not  infringe on any  patent,  trademark,  trade
secret,  copyright or other proprietary  right, and that Buyer is unaware of any
claim  of  infringement,  either  threatened  or  pending.  Notwithstanding  the
language in Section 10.1 above,  Buyer shall  defend,  indemnify and hold Seller
harmless  against  any claims or  liabilities  for, or by reason of, any alleged
infringement  of  any  patent,  trademark,  trade  secret,  copyright  or  other
proprietary  right  caused  by  Seller's  use  and  reliance  upon  the  Product
specification in manufacturing the Product, or arising out of the Products being
incorporated  by Buyer into another  Product or system which  infringes upon any
patent, trademark, trade secret, copyright or other proprietary right.

(b) Buyer agrees that it will  indemnify  and hold Seller  harmless  against and
from any and all claims, damages and liability suffered by Seller resulting from
personal  injury and/or  property  damage to third  parties,  including  without
limitation to Seller's employees, due to defects in the design of the Product or
the Product  specifications or in any specific  component  incorporated into the
Product at the express direction of the Buyer (including any such  incorporation
made in express compliance with specific Product specifications).

11.0    TERMINATION

11. 1 Termination by Seller.

Seller shall have the right to cancel this Agreement  and/or any active purchase
orders:

1.   Upon Buyer's failure to pay outstanding invoices within 90 days of becoming
     due according to theterms of this Agreement; or

2.   Upon thirty (30) days advance  written  notice to Buyer  regarding  Buyer's
     material nonperformance or repudiation of any other substantive obligations
     of this  Agreement  (other  than  failure to pay any  invoice)  and Buyer's
     failure to cure such  nonperformance or repudiation within thirty (30) days
     after the written notice is received, or such additional cure period as the
     Seller may authorize in writing;  or

3.   Upon  written  notice from the Seller in the event the Buyer has elected to
     close or dissolve  its  operation

                                                                               8
<PAGE>

     or is wound up and dissolved, becomes insolvent, or repeatedly fails to pay
     its debts as they  become  due,  makes an  assignment  for the  benefit  of
     creditors,  files a voluntary  petition in bankruptcy or for reorganization
     or is adjudicated as bankrupt or insolvent,  or has a liquidator or trustee
     appointed  over  its  affairs  and such  appointment  shall  not have  been
     terminated and discharged within thirty (30) days thereof.

11.2    Termination by Buyer.

Buyer shall have the right to cancel this Agreement  and/or any active  purchase
orders:

     1.  For the convenience of Buyer if such cancellation is done in compliance
         with Section 2.3 of this Agreement; or

     2.  Upon  thirty  (30) days  advance  written  notice  to Seller  regarding
         Seller's  material  nonperformance  or repudiation  of any  substantive
         obligations  of this  Agreement  and  Seller's  failure  to  cure  such
         nonperformance or repudiation within thirty (30) days after the written
         notice is  received  or such  additional  cure  period as the Buyer may
         authorize in writing; or

     4.  Upon written  notice from the Buyer in the event the Seller has elected
         to close  or  dissolve  its  operation  or is  wound up and  dissolved,
         becomes insolvent,  or repeatedly fails to pay its debts as they become
         due,  makes  an  assignment  for  the  benefit  of  creditors,  files a
         voluntary  petition  in  bankruptcy  or  for   reorganization,   or  is
         adjudicated  as bankrupt or  insolvent,  or has a liquidator or trustee
         appointed  over its  affairs and such  appointment  shall not have been
         terminated and discharged within thirty (30) days thereof; or

     5.  Upon ninety (90) days prior written  notice to the Seller for any or no
         reason whatsoever

11.3 Termination by Both Parties.

This Agreement may be terminated at any time upon the mutual  written  agreement
of both parties hereto.

11.4 Other.

Notwithstanding any provisions to the contrary,  Sections 2.3(d), 6.0, 9.0, 10.0
and 12.12  shall  survive the  termination  of this  Agreement.  In the event of
termination  or  expiration  of this  Agreement,  except  for a  termination  as
described in Sections  11.1 and 11.2,  the  provisions  of this  Agreement  will
continue to apply to purchase  orders  accepted by Seller prior to the effective
date  of  such  termination  or  expiration  within  ninety  (90)  days  of  the
termination  effective date unless Buyer notifies Seller of its intent to change
such purchase order in connection with its notice of termination and pursuant to
the provisions set forth in Section 2.3.

12.0 MISCELLANEOUS

12.1 Entire Agreement.

This Agreement and its attachments  constitute the entire agreement  between the
parties  regarding  the  contemplated   transactions  and  supersede  all  prior
agreements and understandings between the parties relating thereto.

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<PAGE>

12.2    Descriptive Headings.

The  descriptive  headings  and  sections of this  Agreement  are  inserted  for
convenience  only and shall not control or affect the meaning or construction of
any of the provisions hereof.

12.3 Interpretation.

Should any provision of this Agreement  require judicial  interpretation,  it is
agreed  that the court  interpreting  or  construing  the same shall not apply a
presumption that the terms hereof shall be more strictly  construed  against one
party by reason of the rule of  construction  that a document is to be construed
more  strictly  against the party who itself or through its agent  prepared  the
same, it being agreed that all parties,  directly or through their agents,  have
participated in the preparation or negotiation hereof.

12.4 Severability.

In case any one or more of the provisions  contained in this Agreement shall for
any reason be held to be  invalid,  illegal  or  unenforceable  in any  respect,
except in those instances where removal or elimination of such invalid, illegal,
or  unenforceable   provision  or  provisions  would  result  in  a  failure  of
consideration   under  this   Agreement,   such   invalidity,   illegality,   or
non-enforceability  shall  not  affect  any  other  provision  hereof,  and this
Agreement  shall be  construed as if such  invalid,  illegal,  or  unenforceable
provision had never been contained herein.

12.5 Amendments.

No  modification,  termination,  extension,  or renewal of any provision of this
Agreement  shall be binding  upon either party unless made in writing and signed
by an authorized representative of each of the parties.

12.6 Waiver.

No waiver of any breach of any provision of this  Agreement  shall  constitute a
waiver of any prior,  concurrent or  subsequent  breach of the same or any other
provisions  hereof,  nor shall it  constitute  a course of dealing and no waiver
shall be effective unless made in writing.

12.7 Notice.

All notices  which  either  party hereto is required to or may desire to give to
the other party shall be in writing and shall be given by sending such notice to
the party signing this  Agreement at the address set forth on the signature page
of this  Agreement,  or such  replacement  address  as such  party may supply in
accordance with this notification  provision,  by either: (i) personal delivery,
(ii) recognized  overnight delivery service,  or (iii) depositing such notice in
the United States Mail, properly addressed and postage prepaid for delivery.

12.8    Force Majeure.

(a) Performance of this Agreement shall be pursued with due diligence.  However,
neither  party  shall be  liable to the  other  for  nonperformance  or delay in
performance due to causes not reasonably within its control,  including, but not
limited to,  acts of civil or  military  authority,  acts of God,  war,  riot or
insurrection, blockades, embargoes, sabotage, epidemics, fires, or floods.

(b) In the event of any force majeure  occurrence,  the disabled party shall use
its best efforts to meet its  obligations  as set forth in this  Agreement.  The
disabled party shall promptly,  and in writing,  advise the other party if it is
unable to perform due to a force majeure  event,  the expected  duration of such
inability to perform and of any  developments  that appear  likely to affect the
ability of that party to perform any of its obligations  hereunder,  in whole or
in part. Upon receipt of such notice, all obligations under this Agreement shall
be immediately  suspended.  If the period of  nonperformance  exceeds sixty (60)
days from the receipt of the

                                                                              10
<PAGE>

notice of the force majeure  occurrence,  the party whose ability to perform has
not been so affected may terminate  this  Agreement by giving  written notice to
the disabled party.

12.9    Third Party Beneficiary.

This  Agreement is intended  for the benefit of the parties and their  permitted
assigns,  and no other persons shall be entitled to rely upon this  Agreement or
be entitled to any benefits under this Agreement.

12.10   Assignment.

Neither  Buyer or Seller  shall have the right to assign any of its rights under
this Agreement without the prior written consent of the other party hereto,  and
no  purported  assignment  shall  be  binding  upon  the  non-consenting  party.
Notwithstanding  the above,  Buyer may assign its rights under this Agreement to
any person that  directly,  or  indirectly  through one or more  intermediaries,
controls,  or is controlled  by, or is under common control with, the Buyer or a
successor in interest to the Buyer in the event of a merger or change in control
of the Buyer.

12.11   Independent Contractor.

Neither party shall,  for any purpose,  be deemed to be in a joint venture with,
or an agent of, the other party and the  relationship  between the parties shall
only be that of independent contractors.

12.12   Confidential Information.

Neither  party  shall use,  or disclose  to any third  party,  any  confidential
information of the other party which has been disclosed to it in connection with
this Agreement including, without limitation, designs, plans, methods, processes
or  specifications,  provided,  however,  that  Seller  has the right to furnish
confidential  information  of Buyer to third  parties  if it is  needed  by such
parties in order to make parts for the Products,  and provided  further that the
third parties first agree in writing to hold such  information in confidence and
use it only for the purpose of making such parts.  Seller  shall  require all of
its employees,  consultants and  contractors to execute an invention  assignment
and non-disclosure agreement in a form provided by or approved by the Buyer.

12.13   Advertising.

No  advertising  by Seller or Buyer shall  display or contain any  trademarks or
references  to the  other  party or its  customers  without  the  prior  written
approval of all parties referenced therein.

12.14   Compliance with the Laws.

Each of the parties  shall  comply with all  federal,  state,  local and foreign
laws, rules and regulations  applicable to its obligations  under this Agreement
or to the Products supplied hereunder.

12.15   Applicable Laws.

This  Agreement  shall be construed in accordance  with the laws of the State of
California, in the United States of America.

12.16 Jurisdiction and Venue.

The  parties  hereby  agree  that (a)  venue  for any  legal  action  authorized
hereunder shall be in Santa Clara County, California, and (b) jurisdiction shall
be vested  exclusively  in the Circuit Court of the Judicial  Circuit in and for
Santa Clara County, California, or if appropriate, in the United States District
Court for the Northern District of California.

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12.17 Attorney's Fees.

In the event that either party shall retain  counsel to enforce any of the terms
hereof,   the  losing  party  shall  pay  the  prevailing  party  all  costs  of
enforcement,  including  attorney's  fees,  court costs and expert witness fees,
whether  or not suit is filed and  whether  incurred  at trial,  on  appeal,  in
bankruptcy or otherwise.

12.18 Full Payment Checks.

Seller may accept and  deposit any checks  marked  "Payment in Full" or words to
the like  effect  without  waiving  its right to the  payment in full under this
Agreement,  UNLESS BUYER SHALL GIVE WRITTEN NOTICE TO SELLER IN COMPLIANCE  WITH
SECTION  12.7  SPECIFYING  THE AMOUNT IN DISPUTE  AND THE BASIS  THEREFORE,  AND
STATING THAT THE CHECK IS BEING TENDERED AS FULL PAYMENT.

12.19 Counterparts.

This  Agreement  may be  executed in any number of  counterparts,  each of which
shall be an original, but all of which together shall constitute one instrument.

IN WITNESS WHEREOF, the duly authorized  representative of Buyer and Seller have
executed this Agreement on the dates shown below:

SELLER:                                         BUYER:
GSS/ARRAY Technology                            SPECTRIAN
94 Moo 1, High-Tech Industrial Estate,          350 West Java Drive
Banland, Bang pa-in, Ayudhaya, 13160            Sunnyvale, CA 94089
Thailand                                        Phone: (408) 745-5410
Phone:  011-66-35 350890

By:  /s/ James A Menues                         By: /s/ Stephen B. Greenslan
   ----------------------------------------        ----------------------------
   (Signature of authorized representative)

NAME:    James A. Menues                        NAME:  Stephen B. Greenslan
     --------------------------------------          --------------------------
              (type or print)

TITLE:  COO--Asia/Envelope                      TITLE:  Exec. VP and COO
      -------------------------------------           -------------------------

DATE:    20 July 98                             DATE:    July 31, 1998
      -------------------------------------           -------------------------

12

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