Document:

<PAGE>   1
                                                                   EXHIBIT 10.17

                                                         Contract No. HO32010023

                                                                  EXECUTION COPY

================================================================================

                   MICROELECTRONICS PRODUCT PURCHASE AGREEMENT

                                 by and between

                               AGERE SYSTEMS INC.

                                       and

                            LUCENT TECHNOLOGIES INC.

                          Dated as of February 1, 2001

================================================================================

                                  Page 1 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   2
                                                         Contract No. HO32010023

                   MICROELECTRONICS PRODUCT PURCHASE AGREEMENT

THIS MICROELECTRONICS PRODUCT PURCHASE AGREEMENT ("Agreement"), effective as of
February 1, 2001 (the "Effective Date"), is by and between AGERE SYSTEMS INC. a
Delaware corporation, with offices at 555 Union Blvd., Allentown, Pennsylvania
18103 ("Seller"), and LUCENT TECHNOLOGIES INC., a Delaware corporation, with
offices at 600 Mountain Avenue, Murray Hill, New Jersey 07974 ("Buyer").

1.       TERM OF THE AGREEMENT

The term of this Agreement shall commence on the Effective Date and shall expire
on January 31, 2004, unless earlier terminated in accordance with the provisions
hereof (the "Term"). The Term will automatically extend for additional one (1)
year periods unless either party gives at least three (3) months' written notice
prior to the then-effective expiration date of its intention not to extend this
Agreement. The rights and obligations of the parties which by their nature would
continue beyond the termination, cancellation, or expiration of this Agreement,
shall survive such termination, cancellation or expiration.

2.       SCOPE OF THE AGREEMENT

During the term of this Agreement, Buyer intends to purchase from Seller and
Seller intends to sell to Buyer the products listed on Attachments A1 and A2, as
may be supplemented by mutual written agreement of the parties from time to
time, and other products that may become the subject of an Order accepted by
Seller during the term of this Agreement (the "Products"). All quotations issued
by Seller and all Orders submitted by Buyer with respect to the Products shall
be deemed to incorporate and be subject to the terms and conditions of this
Agreement. All other terms and conditions contained on any Order form or
correspondence originated by either party are null and void and without effect
notwithstanding acceptance of the Order by Seller. Either party's failure to
object to provisions contained in any communication from the other party shall
not be deemed a waiver of the provisions of this Agreement. When necessary for
purposes of applying different provisions, Product may also be referred to as
"Custom Product," which is Product that is sold only to Buyer and to any Buyer
Subcontractor; or "Standard Product," which is Product that is generally offered
by Seller to the general market.

Buyer and any of its Affiliates in the United States may place or enter into
Orders under this Agreement for the purchase of Products in the United States.
In the event that Buyer wants to procure Products outside the United States,
Orders for Products shall be placed on the appropriate Seller Affiliate in the
Asia Pacific or EMEA Region.

Acceptance of an Order will create a corresponding agreement, incorporating the
terms and conditions of this Agreement, between Buyer or the Buyer Affiliate
placing the Order and the Seller Affiliate accepting the Order. As used herein,
"Seller" refers to Agere Systems Inc. or to the particular Seller Affiliate
accepting the Order.

-    In addition to the above procedure, the parties may by mutual agreement
     decide that prior to

                                  Page 2 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   3
                                                         Contract No. HO32010023

     submitting or entering into an Order under this Agreement, the non-U.S.
     Buyer Affiliate and the relevant Seller Affiliate shall sign a Letter of
     Acceptance ("LOA") (in substantially the form set forth in Attachment E)
     committing them to utilize the terms and conditions of this Agreement in
     any forthcoming procurement of Products in their location, subject to any
     modified, additional, or deleted terms as set forth in the LOA. Each LOA
     shall state the Seller Affiliate, the non-U.S. Buyer Affiliate, the
     applicable Products, and the geographical area to which it applies. Each
     LOA will incorporate by reference the master terms and conditions of this
     Agreement and will specify any agreed upon changes required by local law or
     local operational practice. Such additional terms may include, but shall
     not be limited to delivery terms, passage of title, or choice of law.
     Notwithstanding the foregoing, any pricing terms shall continue to be
     subject to the Most Favored Pricing provision (as defined in Attachment B).
     The Parties intend that the terms and conditions of the Agreement shall
     apply, except with respect to those mutually agreed upon provisions which
     are required to address (1) local laws/regulations or (2) operational
     issues resulting from transacting in the particular country identified in
     the relevant LOA. Each LOA shall be deemed a separate contract between the
     parties who sign it, and each party identified in such LOA shall look only
     to the other for performance of their respective obligations under such LOA
     and any Order placed pursuant to it. Once an LOA has been executed by the
     relevant parties, multiple Orders may be placed under such LOA.

-    For deliveries outside of the United States only, should there be a
     conflict between the terms and conditions of a LOA and this Agreement, the
     terms of the LOA shall prevail. Once an LOA for a specific geographic area
     is executed by both parties, Orders may be placed under the LOA following
     the procedures set forth herein (unless modified or amended by the relevant
     LOA).

-    "Affiliate" of any party means an entity that controls, is controlled by,
     or is under common control with such Person. As used herein, "control"
     means the possession, directly or indirectly, of the power to direct or
     cause the direction of the management and policies of such entity, whether
     through ownership of voting securities or other interests, by contract or
     otherwise. "Person" means an individual, a general or limited partnership,
     a corporation, a trust, a joint venture, an unincorporated organization, a
     limited liability entity, any other entity and any governmental authority.

Buyer reserves the right to use contract manufacturers in the production and/or
third party logistics or distributor partners ("Buyer Subcontractors") in the
provisioning of Buyer's products which utilize Products covered under this
Agreement, subject to Seller's approval which shall not be unreasonably
withheld. As a result, Buyer may authorize in writing Seller and, if acceptable,
Seller shall agree in writing to sell and/or ship Products to such approved
Buyer Subcontractors involved in the production and provisioning of Buyer's
products. Any Order issued by a Buyer Subcontractor will be a contractual
relationship between Seller and such Subcontractor, and Seller shall look only
to such Subcontractor for performance of its respective obligations under such
Order unless otherwise agreed in writing. Buyer acknowledges that Seller's
decision whether or not to sell to a particular Buyer Subcontractor, may be
based on credit worthiness of the Buyer Subcontractor, reaching agreement
between Seller and Buyer on responsibility for

                                  Page 3 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   4
                                                         Contract No. HO32010023

funding support services (e.g., third party logistic partners), and whether or
not the Buyer Subcontractor competes against Seller in the market with respect
to the Products which would be sold to such Buyer Subcontractor. All Product
Orders by Buyer Subcontractors shall be deemed to be, and shall be, pursuant to
the terms and conditions of Sections 1, 2, 4, 5, 6, 7, 8, 9, 11, 12, 13, 14,
15,16, 18, 19, 20, 21, 23, 25, 26, 28, 30, 32, 33, 34, 35, 36, and 42 of this
Agreement. All other provisions will be as separately agreed between the Buyer
Subcontractor and Seller. In addition, any Buyer Subcontractor making a purchase
of Product hereunder will be required to furnish to Seller a letter or other
written document in which the Buyer Subcontractor acknowledges and agrees that
(i) it shall comply with, and all purchases by the Buyer Subcontractor will be
governed by, all applicable terms and conditions of this Agreement shown above
as though it were Buyer, (ii) it shall have no right to purchase Products or to
purchase volumes in excess of Buyer's authorization to the Buyer Subcontractor,
and (iii) it shall use and/or sell Product only to Buyer or for Buyer's account.

3.       MINIMUM PURCHASE COMMITMENT

For the period commencing on February 1, 2001 through January 31, 2004, Buyer
agrees to a minimum purchase commitment of Products from Seller that equals a
total commitment of two billion, eight hundred million ($2,800,000,000) broken
down for each twelve month period ("Year") as follows:

         Year 1 (February 1, 2001 through January 31, 2002):
         USD $800,000,000;

         Year 2 ((February 1, 2002 through January 31, 2003):
         USD $1,000,000,000;

         Year 3 ((February 1, 2003 through January 31, 2004:)
         USD $1,000,000,000.

         As may be adjusted in accordance with Attachment B, the amounts above
for any Year is referred to herein as the "Annual Commitment."

Buyer and Seller will determine whether Buyer has met an Annual Commitment,
using the credits and other adjustments provided in Attachment B.

4.       PURCHASE ORDERS

Purchase orders ("Orders") shall be placed under this Agreement from time to
time by Buyer. All purchases and sales under this Agreement shall be subject
only to the terms and conditions hereof. In the event that the terms of any
Order, Order acknowledgment, invoice, confirmation or similar document conflict
with, or are additional to, the terms of this Agreement, the terms of this
Agreement alone shall apply and shall govern regardless of execution of such
document by one or both parties. Notwithstanding, the parties may agree to
negotiate non-preprinted terms which shall be effective if executed in writing
by both parties. Seller shall accept and acknowledge in

                                  Page 4 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   5
                                                         Contract No. HO32010023

writing (or electronically) all Orders submitted by Buyer within five (5)
working days after receipt thereof or indicate why an Order cannot be accepted.
Each acknowledgment shall include a shipping date for the Products ordered in
the Order. "Working day or business day" shall mean a regular weekday on which
Seller and Buyer and their respective subcontractors are open for business.
Delivery shall be in accordance with accepted Orders. Minimum order requirements
shall be as set forth on Attachments 1 and 2.

5.       PRICING

Seller shall sell Products to Buyer at the prices listed in Attachments A1 and
A2. The pricing process and other related terms are as set forth in Attachment
C.

6.       DELIVERY

The following delivery terms apply:

<TABLE>
<CAPTION>
 If Buyer (i.e., Order from/invoice party)      Seller/Incoterm 2000
          is located in:

<S>                                             <C>
U.S.                                            Seller U.S./DDP Named Place of
                                                Destination

Asia/Pacific Region                             Seller Singapore/DDU Named Place of
                                                Destination

EMEA Region                                     Seller U.K. or Seller GmbH/DDP Named
                                                Place of Destination
</TABLE>

Shipment will be made in a manner determined by Seller. The above Incoterms
terms are used for convenience only to indicate the party responsible for
freight and duties. Title, risk of loss and taxes are as provided in Sections 7
and 8. Buyer shall be responsible for expenses incurred by Seller where, at
Buyer's request, Seller ships or packs Product in other than its normal manner.
Notwithstanding the foregoing, if Buyer requires shipment using a carrier other
than at Seller's selection, Buyer shall pay for freight from Seller's location
to Buyer's location.

7.       TITLE AND RISK OF LOSS

Unless otherwise agreed to by the parties, title and risk of loss or damage to
the Product shall pass to Buyer at the time Seller delivers possession of the
Product to a carrier at Seller's plant or warehouse or other facility (without
regard to notification of shipment or selection of carrier).

8.       TAXES PAYABLE BY BUYER

Buyer shall bear all taxes, duties, levies and similar charges (and any related
interest and penalties), however designated, imposed as a result of the
existence or operation of this Agreement, except (i) any tax imposed upon Seller
in a jurisdiction other than the jurisdiction under the laws of which the Seller
was formed (hereinafter referred to as the "Resident

                                  Page 5 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   6
                                                         Contract No. HO32010023

Jurisdiction") if such tax is allowable as a credit against the Resident
Jurisdiction income taxes of Seller; and (ii) any net income tax imposed upon
Seller by any government entity within Seller's Resident Jurisdiction. In order
for the exception contained in (i) to apply, Buyer must furnish Seller with such
evidence as may be required by the Resident Jurisdiction taxing authorities to
establish that such tax has been paid within thirty (30) days of issuance of
notice by the local taxing authority so that Seller may claim the credit.

If Buyer is required to bear a tax, duty, levy or similar charge pursuant to the
preceding paragraph, Buyer shall pay such tax, duty, levy or similar charge and
any additional amounts as are necessary to ensure that the net amounts received
by Seller hereunder after all such payments or withholdings equal the amounts to
which Seller is otherwise entitled under this Agreement as if such tax, duty,
levy or similar charge did not exist.

Seller shall not collect an otherwise applicable tax if Buyer's purchase is
exempt from Seller's collection of such tax and a valid tax exemption
certificate is furnished by Buyer to Seller.

All prices mentioned in this Agreement are exclusive of value added taxes,
turnover taxes, sales taxes or similar taxes, including any related interest and
penalties (hereinafter all referred to as "VAT"). In the event that any VAT is
payable on the Products and/or services supplied by Seller to Buyer under this
Agreement, this VAT shall be added to the prices mentioned and shall be for the
account of Buyer. If VAT on the supplies of Seller is payable by Buyer under a
reverse charge procedure (i.e., shifting of liability, accounting or payment
requirement to recipient of supplies), Buyer shall ensure that Seller will not
effectively be held liable for this VAT by the relevant taxing authorities or
other parties. Where applicable, Seller shall use its reasonable commercial
efforts to ensure that its invoices to Buyer are issued in such a way that these
invoices meet the requirements for deduction of input VAT by Buyer, if Buyer is
permitted by law to do so.

Notwithstanding the foregoing, Seller shall be responsible for duties consistent
with the delivery term DDP, for delivery of Product made using such delivery
term in accordance with Section 6.

9.       DISPOSITION OF DAMAGED OR NONCONFORMING DELIVERIES

As to discrepancies in quantity of Product which are discovered by Buyer in the
receiving process, Buyer shall (i) complete its normal receiving process on
actual quantity of Product received and (ii) within a reasonable period of time
of receipt of the Product notify Seller (at the notice address set forth herein)
of such discrepancy. Whenever unconcealed loss or damage has occurred to the
Product prior to receipt by Buyer at the Buyer's site, Buyer should mark the
delivery receipt with the appropriate exceptions describing the damage before
signing and request the carrier to inspect the loss or damage and note the
damage or loss on all copies of the delivery receipt. Each copy of the delivery
receipt shall be signed by Buyer and the carrier's agent. Buyer shall within a
reasonable period of time of its receipt of the Product notify Seller of any
concealed loss or damage of which it becomes aware.

                                  Page 6 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   7
                                                         Contract No. HO32010023

As to incorrect items in shipments of Product which are discovered by Buyer in
the receiving process, Buyer shall promptly contact Seller for direction on
disposition of incorrect item(s). Freight cost to return incorrect items to
Seller will be paid by Seller. Seller shall promptly arrange for replacement
shipment of correct Product.

Buyer shall take care to pack Products that are subject to any returns under
this Agreement in a manner consistent with ensuring adequate protection from
damage while the Product is in transit.

Buyer and Seller agree to cooperate with each other to review and, if necessary,
implement improvements to the above process.

10.      FORECASTS

Upon execution of this Agreement, Buyer shall make commercially reasonable
efforts to provide Seller with a non-binding forecast for each Product required
and shall update it on a monthly basis. The forecast shall be a rolling forecast
covering a period of twelve (12) months following the effective date of the
forecast. In order for Supplier to plan efficiently for Buyer's Product Orders,
Buyer will make commercially reasonable efforts to implement a process for
submitting forecasts that reflect the forecasts submitted by Buyer to Buyer
Subcontractors, and ensure that Buyer's forecasted demands can be reconciled
against Orders placed on Seller by Buyer Subcontractors. Buyer will work with
Seller to reconcile any discrepancy in the Buyer forecasts versus Buyer
Subcontractor Orders. Buyer shall submit the forecast so that Seller receives it
at least one week prior to its effective date.

11.      FLEXIBLE DELIVERY

During the Term of this Agreement, Buyer may give written notice to Seller
requesting that Seller implement certain forms of "Flexible Delivery
Arrangements", including, but not limited to Blanket Orders, Consignment, Demand
Pull, and Dock-to-Shop for designated Product(s). Such notice shall specify the
particular ordering entity and/or facility location(s), Product, and the
requested implementation date, and the proposed Flexible Delivery Arrangement.
Seller agrees to consider in good faith any such request. Upon agreement by
Seller to implement such Flexible Delivery Arrangement, the parties agree to
negotiate in good faith the terms of such proposed Flexible Delivery
Arrangement. The other terms and conditions of this Agreement shall also apply
to such agreed to Flexible Delivery Arrangement(s); provided, however that if
there is a conflict between the terms and conditions in the Flexible Delivery
Arrangement and the other terms and conditions of this Agreement, the terms and
conditions of such applicable Flexible Delivery Arrangement shall prevail.

12.      LATE DELIVERY

Seller shall ship Product in accordance with the acknowledged delivery date of
an accepted Order. In the event Seller fails to deliver Product within ten (10)
days of the acknowledged delivery date, in addition to any other remedies Buyer
may have for Seller's late delivery under this Agreement, Buyer may at its
option, (i) establish a new delivery date for Seller, or (ii) cancel

                                  Page 7 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   8
                                                         Contract No. HO32010023

the Order, buy product elsewhere which Seller has so failed to deliver, and
deduct from Buyer's Minimum Purchase Commitment the dollar amount for which
commitment has been made elsewhere. If Buyer establishes a revised delivery date
and Seller fails to deliver fully conforming Product by that revised date, Buyer
may cancel the Order, buy product elsewhere which Seller has so failed to
deliver, and deduct from Buyer's Minimum Purchase Commitment the dollar amount
for which commitment has been made elsewhere. Cancellations pursuant to this
Section shall be at no charge to Buyer. Seller shall be responsible for the cost
of any required expedited airfreight related to late or rescheduled delivery due
to Seller's action.

13.      RESCHEDULING OR TERMINATION OF ORDERS

Buyer may at any time terminate any or all Orders, or any portion thereof, upon
written notice to Seller. Unless otherwise specified in this Agreement, Buyer's
liability to Seller with respect to such terminated Order or Orders for Standard
Product (not usable in Seller's other operations or salable to Seller's other
customers within a reasonable period of time) shall be limited to:

         (i)      one hundred percent (100%) of the purchase price as set forth
                  in this Agreement or applicable Order for the quantities
                  scheduled to be shipped within four (4) weeks from the written
                  notice of termination.

Unless otherwise specified in this Agreement, Buyer's liability to Seller with
respect to such terminated Order or Orders for Custom Product (not usable in
Seller's other operations or salable to Seller's other customers within a
reasonable period of time) shall be limited to:

         (i)      one hundred percent (100%) of the purchase price as set forth
                  in this Agreement or applicable Order for the quantities
                  scheduled to be shipped four (4) weeks from the written notice
                  of termination; plus

         (ii)     sixty percent (60%) of the purchase price as set forth in this
                  Agreement or applicable Order for the quantities scheduled to
                  be shipped between five (5) and six (6) weeks from the written
                  notice of termination; plus

         (iii)    forty percent (40%) of the purchase price as set forth in this
                  Agreement or applicable Order for the quantities scheduled to
                  be shipped between seven (7) and eight (8) weeks from the
                  written notice of termination; plus

         (iv)     twenty percent (20%) of the purchase price as set forth in
                  this Agreement or applicable Order for the quantities
                  scheduled to be shipped between nine (9) and twelve (12) weeks
                  from the written notice of termination.

Seller will render invoice to Buyer for any termination charges, and Buyer shall
pay Seller in accordance with Section 17.

If Buyer terminates an Order for Product and then reorders the same Product
within thirty (30) days of such termination, with delivery of the Product
scheduled within ninety (90) days of the

                                  Page 8 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   9
                                                         Contract No. HO32010023

original acknowledged delivery date of the terminated Order, then Buyer will
receive credit for any termination fees paid to Seller, based on the quantities
reordered. Notwithstanding the foregoing, no credit will apply in the case of
any reorders where the terminated Order had been (1) previously rescheduled, or
(2) a reorder of a previously terminated Order.

Upon such termination, Seller shall work co-operatively with Buyer, at Buyer's
request for orderly transfer of the terminated Product to Buyer or to Buyer's
designated third party in a mutually established schedule and procedure so as to
minimize impact to Buyer and Seller. Upon termination, Seller shall promptly
return all Buyer proprietary or proprietary restricted information related to
the terminated Order to Buyer.

Buyer may, without liability, reschedule Orders, or any portion thereof, by
providing written notice of reschedule (via facsimile or EDI) to Seller at least
thirty (30) calendar days prior to the scheduled ship date, provided however,
that in no event shall any reschedule extend the delivery date to more than
ninety (90) days out from Seller's original acknowledged delivery date. Seller
agrees to negotiate in good faith any request by Buyer for reschedule that is an
exception to the limits established above.

Any payment by Buyer under this Section 13 will be considered as liquidated
damages and will not be viewed as a penalty.

Any payments made by Buyer under this Section will be applied to the Minimum
Purchase Commitment.

14.      WARRANTY

Seller warrants the Product as a production item ("Item"), but not related
services or prototypes of any such Items, to be free from defects in material
and workmanship and in conformance with the written specification furnished by
or agreed to by Seller. If any failure to conform to such specification
("Defect") is suspected in any such Items, Buyer, after obtaining a Returned
Material Authorization number from Seller, shall ship suspected defective
samples of the Items to Seller, following Seller's instructions regarding the
return. No Item will be accepted for repair, replacement, credit or refund
without the written authorization of Seller and in accordance with Seller's
instructions. Seller shall analyze the failures, making use, when appropriate,
of technical information provided by Buyer relating to the circumstances
surrounding the failures. Seller will verify whether any Defect appears in the
Items. If Seller determines that the returned Items are not defective, Buyer
shall pay Seller all costs of handling, inspection, repairs and transportation
at Seller's then prevailing rates. Seller shall, at Seller's option, either
repair or replace any Defective Item with the same or equivalent Item without
charge at Seller's manufacturing or repair facility, or credit or refund the
purchase price, provided: (i) Buyer notifies Seller in writing of the claimed
Defect within a reasonable time period after Buyer knows or reasonably should
know of the claimed Defect, (ii) Seller's examination of the Items discloses
that the claimed Defect actually exists and (iii) unless a different warranty
period is specified on Attachments A1 or A2, the defect appears within twelve
(12) months from the date of shipment

                                  Page 9 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   10
                                                         Contract No. HO32010023

of the Item. In the event of a replacement, Seller shall ship the replacing
Items FCA point of origin, freight prepaid to Buyer's destination. Any replaced
Item shall become Seller's property. The method of disposition of any replaced
Items will be as mutually agreed by both parties in writing. In no event shall
Seller be responsible for deinstallation or reinstallation of any Item or for
the expenses thereof other than as set forth in Attachment D of this Agreement.
Repairs and replacements covered by the above warranty are warranted to be free
from Defects as set forth above except that the Defect must appear (i) within
three (3) months from the date of repair or replacement or (ii) prior to the
expiration of the warranty period, whichever is later. Inspection and acceptance
of Items by Buyer and/or payment therefor shall not relieve Seller of
responsibilities hereunder.

The above warranty does not apply to, and Seller makes no warranties with
respect to Items that are software programs, experimental products, prototypes
or units from risk lots (all of which are provided "AS IS") or to Items which
have been subjected to misuse, neglect, accident or abuse or operating or
environmental conditions that deviate from the parameters established in
applicable specifications; or have been improperly installed, stored,
maintained, repaired or altered by anyone other than Seller; or have had their
serial numbers or month and year of manufacture or shipment removed, defected or
altered. This warranty does not extend to any system into which an Item is
incorporated. This warranty applies only to Buyer and may not be assigned or
extended by Buyer to any of its customers or other users of the Items. Seller
will not accept any returns from Buyer's customers or users of Buyer's products.
As used herein "risk lots" refers to production units of Custom Product ordered
by Buyer prior to formal production approval.

Seller does not recommend the use of any of its Products for medical or life
support applications wherein a failure or malfunction of the Product may
directly threaten life or cause injury and Seller will not knowingly sell its
Products for such use except pursuant to a written exception to this policy
granted on a case-by-case basis. No warranty is made with respect to any such
medical or life support use of any Product.

EXCEPT AS STATED IN THIS SECTION, SELLER, ITS SUBSIDIARIES AND AFFILIATES,
SUBCONTRACTORS AND SELLER'S SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED,
AND SPECIFICALLY DISCLAIM ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE. BUYER'S SOLE AND EXCLUSIVE REMEDY SHALL BE SELLER'S
OBLIGATIONS AS SET FORTH ABOVE.

15.      PRODUCT CHANGES

Seller shall provide Buyer with at least ninety (90) days prior written notice
of any changes proposed to be made by Seller (i) in the Product or in
manufacturing processes, that will affect form, fit or function of the Product,
or (ii) in the sites of manufacturing of the Product. In regard to Seller's
manufacturing processes, Buyer also reserves the right to perform periodic
quality audits, surveys, and evaluations, including, but not limited to,
analysis of each manufacturing or assembly position for acceptability of
procedures and equipment calibration, as well as evaluation of quality
control/quality assurance and data collection and analysis procedures. In no

                                 Page 10 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   11
                                                         Contract No. HO32010023

event shall Seller be required to provide proprietary information to Buyer in
connection with such audits, surveys and evaluations.

Notwithstanding any other provisions of this Agreement, if Buyer, in its sole
discretion, does not agree to the change proposed by Seller, Buyer shall have
the right to terminate any or all Orders for Product affected by such change
without further obligation and shall have the right to buy elsewhere Product and
to deduct from Buyer's commitment under this Agreement to Seller the quantity
for which commitment has been made elsewhere. Seller shall use commercially
reasonable efforts to facilitate a timely, smooth transition to an alternate
component, if available.

Notwithstanding anything contained herein to the contrary, Seller reserves the
right to manufacture the Product in any facility qualified by Seller.

16.      DISCONTINUANCE OF PRODUCT

Seller shall provide Buyer at least twelve (12) months written notice that any
Product covered by this Agreement is to be manufactured discontinued. Buyer may
place Orders for such Product at the prices set forth in this Agreement during
this twelve (12) month period and Seller shall fill such Orders even if such
twelve (12) month period extends beyond the term of this Agreement. Delivery
schedules for this Product shall be negotiated by the parties at time of Order
placement, but delivery will not extend beyond eighteen (18) months from date of
notice of discontinuance unless Seller agrees otherwise. Notwithstanding the
foregoing, to the extent that an alternative product meeting Buyer's functional
and cost requirements is reasonably available and can be qualified within six
(6) months, as determined by Buyer, then notice of discontinuation may be
reduced to six (6) months. Any Product for which a notice of discontinuation has
been received by Buyer, shall be considered a Custom Product solely for purposes
of Section 13, Cancellation and Rescheduling, effective as of receipt of such
notice.

Seller recognizes that continuity of supply of Custom Product is a critical
concern of Buyer. Therefore, in the event Seller elects to discontinue supplying
Custom Product, the parties agree to consider in good faith reasonable
alternatives that may be available in addressing Buyer's concerns. In no event
will this provision be construed as requiring the broadening of the scope of any
licenses of intellectual property entered into between the parties by separate
written agreement as of the Effective Date.

17.      PAYMENT TERMS

Buyer shall pay the invoiced amount within thirty (30) days from the date of
Seller's invoice. Prices shall be quoted and invoices shall be rendered and paid
in United States currency unless agreed to otherwise by the parties.

18.      SOFTWARE

No title or other ownership rights in any software, including related
documentation or any licensed Product or any copies thereof shall pass to Buyer
under this Agreement or any

                                 Page 11 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   12
                                                         Contract No. HO32010023

performance hereunder. Use of software in connection with purchase of certain
Products hereunder may require execution of separate software license
agreements.

Buyer agrees that it will not alter any notices on, prepare derivative works
based on, or reproduce, reverse engineer, disassemble or decompile any software
embodied in licensed Products or recorded in the purchased Products furnished
under this Agreement. Buyer's right to further distribute software embedded in
Products furnished hereunder is limited solely to purposes in connection with
incorporating such Products into Buyer products for resale to its customers.

19.      INTELLECTUAL PROPERTY INDEMNITY

(a)      With respect to any claim alleging that the installation, normal use,
or sale of any Product (including its related documentation) furnished under
this Agreement is an infringement of any patent, copyright, mask work or
trademark or a misappropriation of a trade secret, Seller will, subject to the
conditions and exceptions stated below: (i) at its option, defend or settle such
claim, at its expense, (ii) reimburse Buyer for any reasonable costs incurred at
Seller's written request (including reasonable attorneys' fees) relating to such
claim; and (iii) pay damages and costs assessed by final judgment of such claim
against such Product.

(b)      If Buyer's or its customer's installation, sale or use of a Product
(including its related documentation) shall be enjoined or, in Seller's opinion
is likely to be enjoined, Seller shall have the right, at any time and at its
option and expense to: (i) procure for Buyer or its customer the right to
continue installation, sale or use of any such Product; or (ii) replace any such
Product with a non-infringing substitute; or (iii) modify any such Product
provided or to be provided to be free of the infringement; or (iv) if the
Product is still in the possession of Buyer and has not yet been incorporated
into any other product by or for Buyer, and as long as return is feasible and
commercially reasonable, require return of such Product and refund or credit to
Buyer any amount(s) paid to Seller for Product. Exercise of any of the options
(i) through (iv) above shall release Seller of any further liability to Buyer
and Buyer's customer. In no event shall Seller's liability under this Section
19(b) exceed the amount(s) paid by Buyer to Seller to purchase the allegedly
infringing Product or the amount necessary to obtain the rights to use, install
or sell such Product.

(c)      Seller's obligations hereunder are conditioned upon: (i) Buyer giving
Seller written prompt notice of any such claim; (ii) Seller having full and
complete control of the defense and/or settlement thereof, including appeals;
and (iii) Buyer cooperating fully with Seller to facilitate the defense or
settlement of such claim.

(d)      If any action or proceeding shall be brought in connection with any
liability or claim to be indemnified under this Agreement, Seller shall keep
Buyer apprised as to the status of the defense or settlement of such action or
proceeding.

(e)      Notwithstanding the foregoing, Seller shall have no obligation under
this Section 19, and Buyer shall (except with respect to item (ii) below)
defend, indemnify and save harmless Seller

                                 Page 12 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   13
                                                         Contract No. HO32010023

and its Sellers and affiliated companies, under the terms provided herein, from
all costs, expenses, liabilities and claims, for any such claim, action,
proceeding or suit alleging infringement: (i) arising from Seller's compliance
with specifications, modifications, drawings, designs or instructions furnished
by, or on behalf of, Buyer; or (ii) arising as a result of the combination,
operation or use of any Product (including documentation) furnished hereunder,
or any component thereto, with item(s) not furnished by Seller or furnished by
Seller but which combination was not recommended by Seller; or (iii) arises from
adherence to instructions to apply Buyer's trademark, trade name or other
company identification; or (iv) resides in item(s) (including software) that is
furnished by Buyer to Seller for use under this Agreement; or (v) is based upon
modification made by Buyer of any Product or component thereof (including
software and documentation).

(f)      The sale of any Product by Seller shall not in any way confer upon
Buyer, or upon anyone claiming under Buyer, any license (expressly, by
implication, by estoppel or otherwise) under any patent claim of Seller or
others covering or relating to any combination, machine or process in which such
Product is or might be used, or to any process or method of making such Product.

(g)      Notwithstanding any other provision in this Agreement, Seller's total
liability to Buyer for all claims, actions, proceedings or suits alleging
infringement of intellectual property rights because of, or in connection with,
any items furnished pursuant to this Agreement shall be limited to the specific
undertakings contained in this Section 19.

20.      EXCLUSIVE REMEDIES AND LIMITATIONS OF LIABILITY

A.       For purposes of the exclusive remedies and limitations of liability set
forth in this Section, Seller shall be deemed to include Agere Systems Inc., and
its subsidiaries and Affiliates and the directors, officers, employees, agents,
representatives, subcontractors and Seller's suppliers of each of them; and
"damages" shall be deemed to refer collectively to all injury, damage, loss or
expense incurred.

B.       Seller's entire liability and Buyer's exclusive remedies against Seller
for any damages caused by any Product Defect or failure, or arising from the
performance or non-performance of any work, regardless of the form of action,
whether in contract, tort including negligence, strict liability or otherwise
shall be:

For infringement, the remedies set forth in the Section entitled Intellectual
Property Indemnity;

For failure of Product or work performed, the remedies stated in the Section
entitled Warranty;

For failure to deliver or for delays in delivery of production quantities,
Seller shall have no liability unless the delivery is delayed by more than ten
(10) days by causes not attributable either to Buyer or to conditions beyond
Seller's reasonable control as set forth in Section 21, in which case Buyer
shall have the right, as its sole remedy, to terminate the Order without
incurring termination charges and deduct from Buyer's Minimum Purchase
Commitment the dollar amount for which commitment has been made elsewhere;

                                 Page 13 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   14
                                                         Contract No. HO32010023

For bodily injury or death to any person proximately caused, Buyer's right to
proven direct damages; and

For claims other than set forth above, Seller's liability to Buyer shall be
limited to direct damages that are proven in an amount not to exceed $500,000
per occurrence.

C.       Except as otherwise expressly provided in this Agreement, neither party
shall be liable for incidental, indirect, special, exemplary or consequential
damages, including but not limited to lost profits, savings or revenues of any
kind, whether or not such party has been advised of the possibility of such
damages. This provision shall survive failure of an exclusive remedy.

21.      EXCUSE OF PERFORMANCE

Except for Buyer's obligation to make timely payments when due, neither party
shall be held responsible for any delay or failure in performance of any part of
this Agreement to the extent such delay or failure is caused by fire, flood,
explosion, war, strike, embargo, government requirement, civil or military
authority, act of God, inability to secure material due to a world-wide
shortage, nature or the public enemy, act or omission of carriers or any other
causes beyond its reasonable control.

22.      NOTICES

Except as provided below, all notices, requests, demands and other
communications required or permitted to be made hereunder shall be in writing
and shall be deemed duly delivered against a signed receipt for same, sent via
e-mail with confirmation of receipt, sent via facsimile with a confirmation
retained by the sending party, sent by registered or certified mail, return
receipt requested, first class postage prepaid, or sent by nationally recognized
overnight delivery service, addressed to the parties at the addresses below or
to the addresses to be exchanged from time to time during the term of this
Agreement for the particular kind of notice to be sent.

Notwithstanding the foregoing, in the event of any notice of breach or
termination of this Agreement, the following provision shall apply:

All notices or other communications under this Agreement regarding breach or
termination of this Agreement shall be in writing and shall be deemed to be duly
given when (a) delivered in person or (b) deposited in the United States mail or
private express mail, postage prepaid, addressed as follows:

If to Seller, to:          Agere Systems Inc.
                           2 Oak Way, Berkeley Heights, N.J. 07922
                     Attn: Kenneth W. Dorushka
                           Vice President, Sales to Lucent Technologies

with a copy to:            Agere Systems Inc.

                                 Page 14 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   15
                                                         Contract No. HO32010023

                           2 Oak Way, Berkeley Heights, N.J. 07922
                     Attn: Richard Bleicher
                           Corporate Counsel

If to Buyer to:            Lucent Technologies Inc.
                           283 King George Rd., Warren, NJ 07059
                     Attn: Michael B. Fahrney
                           Senior Manager, Purchasing

with a copy to:            Lucent Technologies Inc.
                           Mt. Hope Church Rd & I85,
                           PO Box 20046, Greensboro, NC 27420
                     Attn: Barbara L. Stewart
                           Corporate Counsel

Any party may, by notice to the other party, change the address to which such
notices are to be given.

23.      SHIPPING DOCUMENTATION; INVOICING

Seller will continue to ship Product with the kind of accompanying information
and documentation that has been normally provided to Buyer from Seller as of the
Effective Date of this Agreement. Seller and Buyer agree to cooperate with each
other to the extent that any changes may be requested by either party in
connection with such matters. Invoice to Buyer will be rendered upon shipment,
unless otherwise agreed in writing.

Seller shall provide Buyer with a valid, accurately completed Exporters'
Certificate of Origin prior to the first shipment of Product sufficient to be
used by Buyer as proof of eligibility for any duty preferential treatment
programs for which Buyer has advised Seller. Seller further agrees to provide
full and reasonable cooperation to Buyer for substantiation of preferential duty
program claims, responses to customs inquiries, or other treaty claims that
arise out of Product provided under this Agreement or Order. Seller shall notify
Buyer in writing prior to making any pricing or sourcing changes for Product
which may affect the application of preferential duty treatment programs,
subject to Buyer having advised Seller of the programs for which preferential
treatment have been requested.

24.      DUTY DRAWBACK AND OFFSET CREDITS

Buyer reserves the right to claim duty drawback on all purchases from Seller,
and Seller shall cooperate by providing the necessary certificates of Delivery
or in instances where the imported Product received further processing, shall
furnish certificates of Manufacture and Delivery on all Product which may be
subject to drawback.

Orders issued pursuant to this Agreement are placed with the expectation of
current and/or anticipated future Offset and Localization obligations of Buyer
or its Affiliates or their

                                 Page 15 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   16
                                                         Contract No. HO32010023

designated assignees to the customer country government that requires the
provision of Offset and Localization. Seller agrees to assist Buyer and its
Affiliates or their designated assignees in any reasonable efforts to secure
offset credit from the customer country government in an amount equal to the
value of the Orders placed under this Agreement.

25.      PACKING, LABELING AND SERIALIZATION

Packing, labeling and serialization of shipping packages will continue to be
performed consistent with the way it has normally been provided to Buyer from
Seller as of the Effective Date of this Agreement. Seller and Buyer agree to
cooperate with each other to the extent that any changes may be requested by
either party in connection with such matters.

26.      MARKING

All Product furnished under this Agreement shall be marked for identification
purposes in accordance with the Product and packaging Specifications as set
forth by the Buyer or elsewhere in this Agreement and as follows: (a) with part
number/serial number; and (b) with month and year of manufacture.

27.      NONDISCLOSURE AGREEMENT

During performance of this Agreement, the parties may disclose or furnish to
each other proprietary or proprietary restricted marketing, technical, or
business information, including, without limitation, products and/or software
("information"), relating to the subject of this Agreement.

Information provided in tangible form shall be clearly marked as proprietary or
proprietary restricted. With respect to any integrated circuits, any technical
information, including but not limited to circuit layout, design, or software,
embedded in any such device is proprietary information notwithstanding the
absence of any proprietary marking on such device. Information provided orally
will be considered proprietary or proprietary restricted if the disclosing party
says it is proprietary or proprietary restricted at the time of oral disclosure
and summarizes it in a proprietary or proprietary restricted writing provided to
the other party within twenty (20) days of the oral disclosure. Pricing to
Lucent shall be deemed proprietary restricted information notwithstanding that
such information is not in writing or if in writing is not marked proprietary
restricted.

The receiving party shall: (a) hold information in confidence using the same
degree of care as it normally exercises to protect its own proprietary
information or proprietary restricted information, (b) restrict disclosure and
use of information to employees (including any contractors or consultants) with
a need-to-know, and not disclose it to any other parties, (c) advise those
employees, contractors and consultants of their obligations with respect to the
information, (d) not copy, duplicate, reverse engineer or decompile information,
(e) use the information only in furtherance of performance under this Agreement,
and (f) upon expiration or termination of this Agreement, return all information
to the disclosing party or at the request of

                                 Page 16 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   17
                                                         Contract No. HO32010023

the disclosing party, destroy such information.

The receiving party shall have no obligation to keep confidential information
that: (a) was previously known to it free of any confidentiality obligation, (b)
was independently developed by it, (c) is or becomes publicly available other
than by unauthorized disclosure, (d) is disclosed to third parties by the
disclosing party without restriction, or (e) is received from a third party
without violation of any confidentiality obligation.

If a party is faced with legal action or a requirement under government
regulations to disclose or make available proprietary or proprietary restricted
information received hereunder, such party shall forthwith notify the furnishing
party and, upon request of the latter, cooperate in contesting such action or
requirement at the requesting party's expense. Neither party shall be liable for
damages for any disclosure or unauthorized access pursuant to legal action or
government regulations or for inadvertent disclosure, access, or use if the
customary degree of care as it uses with respect to its own proprietary or
proprietary restricted information has been exercised and if, upon discovery of
such inadvertent disclosure, access, or use the furnishing or receiving party
has endeavored to prevent any further (inadvertent or otherwise) disclosure or
use.

Except for the receiving party's obligation to keep confidential Buyer pricing
information, the obligations imposed by this Section shall survive for a period
of five (5) years after termination or expiration of this Agreement. The
obligations imposed by this Section with respect to Buyer internal pricing
information shall survive termination or expiration of this Agreement.

28.      EXPORT CONTROL

The parties acknowledge that any Products, software, and technical information
(including, but not limited to, services and training) provided under this
Agreement are subject to U.S. or other applicable export laws and regulations
and any use or transfer of such Products, software, and technical information
must be authorized under those laws and regulations. The parties agree that they
will not use, distribute, transfer, or transmit the Products, software, or
technical information (even if incorporated into other products) except in
compliance with U.S. export regulations. If requested by either party, the other
party also agrees to sign written assurances and other export-related documents
as may be required for the exporting party to comply with U.S. or other
applicable export regulations.

29.      ASSIGNMENT

Neither party shall assign this Agreement or any rights or obligations hereunder
without the prior written consent of the other party, which consent shall not be
unreasonably withheld, except that either party may assign this Agreement or any
rights or obligations hereunder to an entity which acquires all or substantially
all of that party's assets which relate to performance under this Agreement. Any
attempted assignment without the other party's consent shall be void and
ineffective.

30.      CHOICE OF LAW

                                 Page 17 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   18
                                                         Contract No. HO32010023

The parties are familiar with New York commercial law, have been guided by New
York commercial law in their negotiation of this matter, and desire to avoid
uncertainty and disputes concerning the law that will govern the Agreement
between the parties. Each party conducts substantial business in the State of
New York. Accordingly, the parties expressly intend and agree that the
construction, interpretation, and performance of the Agreement and all
transactions under it shall be governed by the laws of the State of New York,
excluding its choice of law rules and excluding the Convention for the
International Sale of Goods.

31.      DISPUTE RESOLUTION

Senior management of either party may, upon notice and within five (5) business
days of receipt of a notice from the other party elect to utilize a non-binding
resolution procedure whereby each presents its case before a panel consisting of
two (2) senior executives of each of the parties and, if such executives can
agree upon such an individual, a mutually acceptable neutral advisor. If a party
elects to use the procedure set forth in this Section, the other party shall
participate. The hearing shall occur no more than ten (10) business days after a
party serves notice to use the procedure set forth in this Section. If the
matter cannot be resolved by such senior executives, the neutral advisor, if one
has been agreed upon, may be asked to assist such senior executives in
evaluating the strengths and weaknesses of each party's position on the merits
of their dispute. The parties shall each bear their respective costs incurred in
connection with the procedure set forth in this Section, except that they shall
share equally the fees and expenses of the neutral advisor, if any, and the cost
of the facility for the hearing.

32.      PUBLICITY; IDENTIFICATION

Any disclosure of the terms and conditions of this Agreement shall be made only
with the prior written agreement of both parties. Each party shall submit to the
other all proposed copy of advertising and publicity material relating to the
disclosure of this Agreement.

Neither Seller nor Buyer shall use any identification of, or reference to, any
code, drawing, specification, trade name, trademark, trade device, insignia,
service mark, symbol, or any abbreviation, contraction, or simulation thereof,
of the other party in any advertising or promotional efforts without such other
party's prior approval.

Notwithstanding the foregoing, Buyer gives Seller permission to list Buyer as
one of Seller's customers.

33.      SEVERABILITY

If any provision or part hereof shall be held to be invalid or unenforceable for
any reason, then the meaning of such provision or part hereof shall be construed
so as to render it enforceable to the extent feasible. If no feasible
interpretation would save such provision or part hereof, it shall be severed
here from, but without in any way affecting the remainder of such provision or
any other provision contained herein, all of which shall continue in full force
and effect unless such

                                 Page 18 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   19
                                                         Contract No. HO32010023

severance effects such a material change as to render the Agreement
unreasonable.

34.      NON-WAIVER

No course of dealing or failure of either party to strictly enforce any term,
right or condition of this Agreement shall be construed as a waiver of such
term, right or condition.

35.      COMPLIANCE WITH LAWS

Each party, its agents, contractors and subcontractors shall comply in
performance under this Agreement with all applicable local, state, federal,
regional and international laws, ordinances, regulations and codes, standards,
directives and international conventions and agreements (collectively "law(s) or
Law(s)"), including, without limitation, those relating to (i) the
identification and procurement of required permits, certificates, licenses,
insurance, approvals and inspections and (ii) Product content requirements or
restrictions applicable to the sale or distribution of Products manufactured by
Seller and supplied to Buyer.

Seller shall use commercially reasonable efforts to ensure that its activities
in performance of this Agreement and an Order placed pursuant to this Agreement
shall not put Buyer in violation of any United States or applicable foreign
customs laws, statutes, or regulations. Seller agrees to assist Buyer to ensure
that Buyer can import the Product into the United States in accordance with all
United States Customs laws, statutes, and regulations, and in support of this
assistance, Seller agrees to follow Buyer's directives, if any, which may be
attached to and made part of this Agreement. When requested by Buyer, Seller
agrees to assist Buyer with importing and exporting Product between non-United
States jurisdictions.

36.      RESPONSIBILITY FOR EMPLOYEES

The personnel of a party ("visiting party") shall, while on the premises of the
other party ("host party"), comply with the host party's rules and regulations
with regard to safety and security. The host party shall provide a written copy
of such rules and regulations to the personnel of the visiting party. The
visiting party shall have full control over its personnel and shall be entirely
responsible for their complying with the host party's rules and regulations. The
visiting party shall indemnify and hold the host party harmless from any claims
or demands including the costs, expenses and reasonable attorney's fees on
account thereof, that may be made by (i) anyone for injuries to persons or
damage to property resulting from the negligent or willful acts or omissions of
the visiting party's personnel; or (ii) the visiting party's personnel under
Worker's Compensation or similar laws. The visiting party shall defend the host
party against any such claim or demand.

37.      ENVIRONMENTAL COMPLIANCE

Attachment F sets forth the provisions concerning compliance with the
environmental, health and safety obligations of the parties.

                                 Page 19 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   20
                                                         Contract No. HO32010023

38.      MINORITY AND WOMEN OWNED BUSINESS ENTERPRISES

Buyer's policy is that Minority and Women-Owned Business Enterprise ("MWBE")
shall have the maximum practicable opportunity to participate in the performance
of this Agreement. Seller agrees to use its good faith efforts to award
subcontracts to carry out this policy consistent with the efficient performance
of this Agreement. Seller agrees that MWBEs will be fairly considered as
subcontractors and suppliers under this Agreement.

39.      SPECIFICATIONS OR DRAWINGS

The following technical specifications and other information (a copy of each is
in Seller's possession), as changed from time to time with Seller's written
approval, are hereby made part of this Agreement.

-    Quality Program Specification No. QPS 61.344 (latest issue) - SUPPLIER
     MANAGEMENT OF SEMICONDUCTORS (SUPPLEMENT A FORMS PART OF THIS
     SPECIFICATION)

-    Quality Program Specification No. QPS 20.166 (latest issue) -
     PRODUCT/PROCESS CHANGE, SUPPLIER/MANUFACTURER DISCONTINUED AVAILABILITY AND
     PRODUCT ALERT NOTIFICATIONS FOR PRODUCT SUPPLIED TO LUCENT TECHNOLOGIES

In the event of a conflict between the technical specifications and other
information referred to above, and the main body of this Agreement, the main
body of this Agreement will control.

40.      ATTACHMENTS

The following attachments are hereby made a part of this Agreement:

         Attachment A1 - SEMICONDUCTOR PRODUCTS
         Attachment A2 - OPTOELECTRONIC DEVICES
         Attachment B - Minimum Purchase Order Adjustments
         Attachment C - Pricing Process
         Attachment D - Additional Warranty Provision
         Attachment E - Sample Form Letter of Acceptance
         Attachment F - Environmental, Health and Safety Obligations
         Attachment G - Goals and Aspirations

41.      NONBINDING GOALS AND ASPIRATIONS

The parties agree that they will each strive to attain certain mutual goals and
aspirations set forth in Attachment G ("Goals and Aspirations"). The parties
expressly agree that these Goals and Aspirations are merely a statement of
present intentions, are nonbinding, and that there will be no recourse by either
party if the other party fails to achieve any of the Goals and Aspirations.

                                 Page 20 of 21
                      PROPRIETARY - RESTRICTED INFORMATION
<PAGE>   21
                                                         Contract No. HO32010023

42.      ENTIRE AGREEMENT

The terms and conditions contained in this Agreement supersede all prior oral or
written understandings between the parties and shall constitute the entire
agreement between the parties with respect to the subject matter of this
Agreement. This Agreement shall not be modified or amended except by a writing
signed by Buyer and Seller.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year above written.

LUCENT TECHNOLOGIES INC.            AGERE SYSTEMS INC.

By: /s/ JOSE A. MEJIA               By: /s/ JOHN T. DICKSON
   ----------------------              --------------------------------
Name:  Jose A. Mejia                Name:  John T. Dickson
Title: Chief Supply                 Title: President and Chief Executive Officer
Date:  February 1, 2001             Date:  February 1, 2001

                                 Page 21 of 21
                      PROPRIETARY - RESTRICTED INFORMATION<PAGE>   1

                                                                   EXHIBIT 10.18
                                                                  EXECUTION COPY

================================================================================

                       ORiNOCO PRODUCT PURCHASE AGREEMENT

                                 by and between

                              AGERE SYSTEMS INC.

                                       and

                           LUCENT TECHNOLOGIES INC.

                          Dated as of February 1, 2001

================================================================================
<PAGE>   2
                       ORINOCO PRODUCT PURCHASE AGREEMENT

THIS ORiNOCO PRODUCT PURCHASE AGREEMENT (this "Agreement"), effective as of
February 1, 2001 (the "Effective Date"), is by and between Agere Systems Inc., a
Delaware corporation, with offices at 555 Union Blvd., Allentown, Pennsylvania
18103 ("Agere") and Lucent Technologies Inc., a Delaware corporation, with
offices at 600 Mountain Avenue, Murray Hill, New Jersey 07974 ("Lucent").

                                 R E C I T A L S

   A. WHEREAS, the Board of Directors of Lucent has determined that it is in
the best interests of Lucent and its stockholders to separate Lucent's
existing businesses into two independent businesses;

   B. WHEREAS, in furtherance of the foregoing separation, Agere and Lucent
desire to enter into this Agreement to provide for certain commercial
transactions between the parties as described in Section 1, Scope of
Agreement, of this Agreement;

NOW, THEREFORE, in consideration of the premises and for other good and valid
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound, agree as follows:

1.  SCOPE OF AGREEMENT

    (a) The terms and conditions of this Agreement shall apply to transactions
in which Agere furnishes Products and Licensed Materials to Lucent for the
purposes of selling, leasing or otherwise furnishing such Products and Licensed
Materials by Lucent to Customers in the Territory and to services furnished by
Agere relating to such Products and Licensed Materials.

    (b) Lucent is granted the non-exclusive right to obtain the Products and
Licensed Materials from the categories listed or referenced in Schedule 1.1, for
purposes of selling, leasing or otherwise furnishing such Products and Licensed
Materials only to Customers located within the Territory in the regular course
of business. No payment is required as a condition of such grant. In the event
Lucent sells or markets Agere Products and Licensed Materials outside of its
designated Territory, as defined herein, without prior written Agere consent, in
addition to all the rights and remedies available to Agere under this Agreement,
at law, in equity, or otherwise, Agere shall have the right to discontinue this
Agreement as set forth in the clause, "Termination Of Agreement." Agere may,
without the consent of Lucent, add to the Products or Licensed Materials listed
in Schedule 1.1.

                                       1
<PAGE>   3
    (c) Supplemental provisions applicable to this Agreement are set forth in
Schedule 1.2. If any of the terms and conditions of the main body of this
Agreement are in conflict with any of the terms of Schedule 1.2, the terms of
Schedule 1.2 shall take precedence.

    (d) Except as set forth in Schedule 1.2 and except for Products sold under
Lucent's marks pursuant to Section 7 of this Agreement, Lucent agrees that it
has no exclusive right to market or supply any Products or Licensed Materials,
nor shall Lucent have the exclusive right to market or supply the same to any
market or in any geographic area. Lucent further agrees that no franchise is
given herein. Agere expressly reserves the right to contract with others to
market and supply such Products and Licensed Materials in the Territory and to
itself engage in such marketing and supply, in competition with Lucent, except
as set forth in Schedule 1.2 and not in contradiction of the terms of Schedule
1.2.

2.  DEFINITIONS AND SCHEDULES

    (a) For the purpose of this Agreement, the following terms and their
definitions shall apply

      "Affiliate" of any Person means a Person that controls, is controlled by,
or is under common control with such Person. As used herein, "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such entity, whether through
ownership of voting securities or other interests, by contract or otherwise.

      "Customer" shall have the meaning set forth in Schedule 1.2.

      "Drop Ship Orders" means an order to be delivered to any location other
than a Lucent Stocking Location.

      "End User Customer" means (i) with respect to Software and Licensed
Material, any third party to whom Buyer or a Sublicensee of Buyer has granted
rights to use, but not to sublicense, Licensed Materials, and (ii) with respect
to Products, a third party who purchases Products primarily for use by such
third party and not for resale.

      "Firmware" means a combination of (i) hardware and (ii) Software
represented by a pattern of bits contained in such hardware.

      "Licensed Materials" means the Software (whether or not listed in Schedule
1.1) and Related Documentation for which licenses are granted by Agere under
this Agreement; no Source Code versions of computer programs are included in
Licensed Materials.

      "Manufacturer's Reference Price" means Agere's list price in effect on the
date of the receipt of an Order.

                                       2
<PAGE>   4
      "Order" means a written (paper or electronic) purchase order issued by
Lucent to Agere, which refers to this Agreement and any firm price quotation and
specifies (i) the quantity and type of Products being ordered and their
applicable prices, charges or fees; (ii) accurate "ship to" and "bill to"
addresses; and (iii) the requested delivery date consistent with Lucent's
standard interval between acceptance of an Order and delivery.

      "Product(s)" means equipment and parts thereof, but the term does not mean
Licensed Materials whether or not such Licensed Materials is part of Firmware.

      "Related Documentation" means materials useful in connection with Licensed
Materials such as, but not limited to, flow charts, logic diagrams and listings,
program descriptions and specifications. No Source Code versions of Licensed
Materials are included in Related Documentation.

      "Services" means engineering, installation, maintenance and other services
provided by or on behalf of Agere in support of Product sales.

      "Software" means a computer program consisting of a set of logical
instructions and tables of information which guide the functioning of a
processor; such program may be contained in any medium whatsoever, including
hardware containing a pattern of bits representing such program, but the term
"Software" does not mean or include such medium.

      "Source Code" means any version of a computer program incorporating
high-level or assembly language that generally is not directly executable by a
processor.

      "Specifications" means Agere's or its vendor's written technical
specifications for a particular Product furnished under this Agreement.

      "Stocking Location" means a Lucent owned or managed facility that is a
"ship to" address for deliveries hereunder.

      "Territory" shall be as set forth in Schedule 1.2.

      "Use" means copying the Licensed Materials, or any portion thereof, into a
Product for execution of the instructions and tables contained in such Licensed
Materials;

    (b) The following Schedules are incorporated by reference hereunto and form
a part of this Agreement:

        Schedule 1.1    Agere Products and Price Schedules

        Schedule 1.2    Supplemental Provisions

        Schedule 5.1    Sample International Letter of Acceptance

                                       3
<PAGE>   5
        Schedule 5.2    International Letter of Acceptance

3.  RELATIONSHIP OF THE PARTIES

    (a) This Agreement does not establish or constitute Lucent as Agere's
representative or agent for any purpose nor does this Agreement establish or
constitute Lucent as an employee or franchisee of Agere. The relationship of the
parties under this Agreement shall be and at all times remain one of independent
contractors and shall not create the relationship of franchiser and franchisee,
joint venturer or principal and agent. Lucent shall (a) not have authority to
assume or create obligations on Agere's behalf with respect to the Products,
Licensed Materials, or Services furnished by Agere hereunder or otherwise except
as expressly set forth herein, (b) transact business in the name of Agere, and
(c) shall not take any action which has the effect of creating the appearance of
having such authority.

    (b) All persons furnished by Lucent shall be considered solely Lucent's
employees or agents, and Lucent shall be responsible for payment of all expenses
incurred in solicitation of orders hereunder and payment of all unemployment,
Social Security and other payroll taxes including contributions from them when
required by law.

    (c) The provisions of this Agreement are solely for the benefit of the
parties and are not intended to confer upon any Person except the parties any
rights or remedies hereunder, and there are no third party beneficiaries of this
Agreement, and this Agreement shall not provide any third Person with any
remedy, claim, liability, reimbursement, claim of action or other right in
addition to those existing without reference to this Agreement.

4.  PERIOD OF AGREEMENT

This Agreement is for the period commencing on the Effective Date hereof through
January 31, 2004, unless terminated by either party as stated in the clause
"Termination Of Agreement" herein. The Term may be extended for additional one
(1) year periods upon the mutual written agreement of the parties. Except as
expressly provided in this Agreement, the modification or termination of this
Agreement shall not affect the rights or obligations of either party for any
order accepted by Agere before the effective date of the modification or
termination.

5.  EXPORT CONTROL; CUSTOMS DUTY DRAWBACK; INTERNATIONAL TERMS

    (a) The parties acknowledge that any products, software, and technical
information (including, but not limited to, services and training) provided
under this Agreement are subject to U.S. export laws and regulations and any use
or transfer of such products, software, and technical information must be
authorized under those laws and regulations. Lucent agrees that it will not use,
distribute, transfer, or transmit the products, software, or technical
information (even if incorporated into other products) except in compliance with
U.S. export regulations. If requested by Agere, Lucent also agrees to sign
written

                                       4
<PAGE>   6
assurances and other export-related documents as may be required for Agere to
comply with U.S. export regulations. Lucent agrees to indemnify and hold Agere,
its directors, officers and employees harmless for any claims, losses or damages
resulting from Distributor's failure to comply with this Section 5. Lucent
acknowledges that it has the responsibility for securing any required licenses
and agrees that will in fact do so prior to exportation.

    (b) Lucent reserves the right to claim United States customs duty drawback
on all sales made to Lucent under this Agreement. Agere shall cooperate with
Lucent in this regard in all reasonable ways, including without limitation,
providing proof of exportation, advance notice of exportation, certificates,
endorsements, or any other documentation or proof as may be necessary for
Lucent, or its Affiliates, to receive payment of the drawback claims(s) and, if
required by the United States Customs Service, by making the Products available
for examination by the United States Customs Service.

    (c) Lucent and any of its Affiliates in the United States may place or enter
into Orders under this Agreement for the purchase of Products in the United
States. In the event that Lucent wants to procure Products outside the United
States, Orders for Product shall be placed on the appropriate Agere Affiliate by
Lucent or a Lucent Affiliate, and the following procedure shall apply. As used
herein, "Lucent" refers to the Lucent Affiliate placing the Order and "Agere"
refers to the particular Agere entity accepting the Order.

      (i) Prior to submitting or entering into an Order under this Agreement,
      the non-U.S. Lucent Affiliate and the relevant Agere Affiliate shall sign
      a Letter of Acceptance ("LOA") in substantially the form set forth in
      Schedule 5.1 committing them to utilize the terms and conditions of this
      Agreement in any forthcoming procurement of Products in their location,
      subject to any modified, additional, or deleted terms as set forth in the
      LOA. Each LOA shall state the Agere Affiliate, the non-U.S. Lucent
      Affiliate, the applicable Products, and the geographical area to which it
      applies. Each LOA will incorporate by reference the master terms and
      conditions of this Agreement and will specify any agreed upon changes
      required by local law or local operational practice. Such additional terms
      may include, but shall not be limited to, delivery terms, passage of
      title, or choice of law. The Parties intend that the terms and conditions
      of the Agreement shall apply, except with respect to those mutually agreed
      upon provisions which are required to address (1) local laws/regulations
      or (2) operational issues resulting from transacting in the particular
      country identified in the relevant LOA. Each LOA shall be deemed a
      separate contract between the parties who sign it, and each party
      identified in such LOA shall look only to the other for performance of
      their respective obligations under such LOA and any Order placed pursuant
      to it. Once an LOA has been executed by the relevant parties, multiple
      Orders may be placed under such LOA.

      (ii) For deliveries outside of the United States only, should there be a
      conflict between the terms and conditions of an LOA and this Agreement,
      the terms of the LOA shall prevail. Once an LOA for a specific geographic
      area is executed by both

                                       5
<PAGE>   7
      parties, Orders may be placed under the LOA following the procedures set
      forth herein (unless modified or amended by the relevant LOA).

    (d) The Letters of Acceptance entered into as of the Effective Date are
attached hereto as Schedule 5.2.

6.  FORECASTS AND ORDERS

    (a) Lucent agrees to provide forecasts to Agere in accordance with
Schedule 1.2.

    (b) Any order submitted by Lucent shall contain all information necessary
for the furnishing of the Products and Licensed Materials, including, without
limitation, the date of the order, the shipping destination (whether a Lucent
location or a Drop Ship Order), proposal or quotation number, if any, and any
comcode or other applicable Product identifier. If any proposed schedules and
dates, including shipment dates, for the furnishing of the Products and Licensed
Materials differs from any lead times set forth herein or such shorter standard
lead times as Agere may publish from time to time, such schedule must be
expressly agreed to in writing by Agere prior to or as part of its acceptance of
the order. All orders submitted by Lucent shall be deemed to incorporate and be
subject to the terms and conditions of this Agreement as well as any
supplemental terms and conditions agreed to by authorized representatives of the
parties in writing prior to placement of the order. All other terms and
conditions contained on any electronic transmission, purchase order form, or
correspondence originated by either party are rejected and shall be void and
without effect notwithstanding acceptance of an order by Agere unless separately
agreed to in a writing.

    (c) Agere may use either new, reconditioned, refurbished or remanufactured
Products or parts in the furnishing of spares, replacement parts, or repairs of
Products or Licensed Materials furnished under this Agreement. Agere shall
provide new Products and Licensed Materials for initial sale.

    (d) Agere shall accept and acknowledge in writing (or electronically) all
Orders submitted by Lucent within five (5) business days after receipt thereof
or indicate why an Order cannot be accepted. Agere will promptly notify Lucent
of any delays that will postpone its promised shipment date of any accepted
order. In the event an Order does not conform with the terms of this Agreement
or is in Agere's reasonable judgment defective, Agere may accept or reject the
non-conforming order, either in whole or in part (unless the order states that
it must be accepted in its entirety). Agere will not be held responsible or
liable for any loss or damage arising from its failure to accept any
non-conforming orders of Lucent.

    (e) Lucent will not "flow through" to Agere U.S. Government Contracting
Provisions (DARS, FARS, etc.) without prior written acceptance of same from
Agere.

                                       6
<PAGE>   8
    (f) Agere and Lucent agree to establish and maintain a facility for the
electronic exchange of business information (hereinafter "electronics data
interchange" or "EDI"). All exchanges and transactions between the parties
transmitted, received or acknowledged by electronic data interchange shall be
governed by the terms and conditions of this Agreement. Each party shall bear
its own expenses with respect to the creation, maintenance and operation of such
systems necessary for EDI.

    (g) Changes to, or cancellations of, Orders, other than cancellations
arising under Subsection 6(h) of this Agreement, shall be managed in accordance
with the terms set forth in Schedule 1.2.

    (h) Agere shall ship Product in accordance with the acknowledged delivery
date of an accepted Order. In the event Agere fails to deliver Product within
twenty (20) days of the delivery date acknowledged by Agere, in addition to any
other remedies Lucent may have for Agere's late delivery under this Agreement,
Lucent may at its option, establish a new delivery date for Agere, or cancel the
Order, buy product elsewhere which Agere has so failed to deliver, and deduct
from Lucent's Commitment the dollar amount for which commitment has been made
elsewhere. If Lucent establishes a revised delivery date and Agere fails to
deliver fully conforming Product by that revised date, Lucent may cancel the
Order, buy product elsewhere which Agere has so failed to deliver, and deduct
from Lucent's Commitment the dollar amount for which commitment has been made
elsewhere. Cancellations pursuant to this Section shall be at no charge to
Lucent. Agere shall be responsible for the cost of any required expedited
airfreight related to late or rescheduled delivery due to Agere's action.

7.  PRODUCT BRANDING

    In the event Lucent wishes to sell or license certain of Agere's Products or
Licensed Materials under Lucent's brands and marks, and Agere so agrees in
writing, the following additional terms and conditions apply:

    (a) Agere will affix Lucent's brands or marks to the Products, Licensed
Materials, documentation, and packaging materials produced for Lucent pursuant
to this Agreement ("Lucent Branded Materials"). Lucent hereby grants Agere a
royalty free, non-exclusive worldwide license:

        (i) to duplicate and use Lucent's brands and marks for the limited
      purpose of marking Lucent Branded Materials (or having Lucent Branded
      Materials made by Agere's suppliers); and

        (ii) to market, sell, and distribute such Lucent Branded Materials
      exclusively to Lucent or to such Persons as directed to or authorized by
      Lucent.

                                       7
<PAGE>   9
    (b) To the extent applicable, Agere will label Products or Licensed
Materials as required by Part 68 of United States Federal Communications
Commission rules, 47 C.F.R. 68.300. At the sole discretion of Agere, certain
Products, Licensed Materials, components, documentation, or packaging delivered
to Lucent may also bear trade names, trademarks, trade devices, logos, codes,
serial numbers, or other symbols of Agere or of third parties, or of any
combination thereof (collectively "Other Marks"). Neither this Agreement nor the
purchase and resale of Products or licensing of Licensed Materials containing
such Other Marks shall give Lucent any right, title, interest, or privilege with
respect to any of the Other Marks. Lucent shall not conduct business or market
Products or Licensed Materials under any of the Other Marks or derivatives or
variations thereof. Lucent may disclose that the Products are manufactured or
produced by Agere, but Lucent shall not directly or indirectly hold itself out
as having any other relation to Agere or to any of its affiliates. Lucent shall
take all necessary steps to ensure that its dealers, distributors, and agents
comply with all provisions of this Section.

    (c) With respect to Lucent Branded Materials, Lucent shall not, without
Agere's express written permission, use in advertising, publicity or otherwise
any Agere name, trademark, service mark or symbol, trade dress or any other
indicia of origin. Lucent shall not represent that it is a dealer, distributor,
Agere or agent of Agere or that it is affiliated with, endorsed by, sponsored by
or in any way connected with Agere. Lucent shall not imply or state that it has
any authority to bind Agere or to modify Agere warranty.

8.  PRODUCT CHANGES

   Agere shall have the right, in Agere's sole discretion, to change the design
or to discontinue the manufacture or availability to Lucent of any Product.

    (a) In the event that any such design change affects the form, fit, or
function of the Product, then Agere shall notify Lucent of such change when
Agere becomes aware of such change and no later than sixty (60) days before the
change becomes effective, provided, however, that the notice for any change to
Licensed Material shall be no later than thirty (30) days before the change
becomes effective. If Lucent and Agere are unable to reach mutual acceptance of
the change within thirty (30) days from notification to Lucent, Agere may
implement such change at Agere's sole discretion and Lucent may as its exclusive
remedies have the following options:

      (i) Cancel any outstanding purchase orders for undelivered Products
      without incurring any cancellation charges for the Product affected by the
      design change provided that the design change is the reason for the
      cancellation, and,

      (ii)  have the option of a last buy quantity of Product, or;

      (iii)  continue to purchase changed Product at terms defined in this
      Agreement.

                                       8
<PAGE>   10
    (b) For discontinuance of manufacturing or availability of the Product
identified in Schedule 1.1 to Lucent, Agere will notify Lucent of such intent no
later than ninety (90) days before implementation. Lucent may as its exclusive
remedies have the following options:

      (i)  Cancel any outstanding purchase orders for undelivered Products
      without incurring any cancellation charges for the Product; or

      (ii) have the option of a last buy quantity of Product provided that
      Lucent submits the Order(s) within the ninety (90) days of such notice to
      take delivery no later than 180 days after the notice.

    (c) In the event of a mandatory change, defined herein as any change
required to insure that the material, spares and repairs (i) meet the applicable
Product purchase specification(s), (ii) are safe, and (iii) comply with
applicable laws, Agere and Lucent will confer regarding a process for mandatory
change implementation.

    (d) Agere and Lucent agree to work together to develop means so as to
minimize instances in which Lucent is left with inventories of Products that
have been rendered obsolete by such action as are described herein.

9.  PRICES

    (a) The applicable discounts for each Order shall be as set forth in
Schedule 1.1 or in a price quotation made by Agere. All price quotations shall
be deemed to incorporate this Agreement unless mutually agreed otherwise.

    (b) Discounts for the Products listed in Schedule 1.1 are firm through
September 30, 2001.

    (c) Agere may reduce the Manufacturer's Reference Price at any time and
shall apply the new price to Orders on hand not shipped as of the effective date
of a price reduction. Agere may increase Manufacturer's Reference Price at any
time by providing forty-five (45) days notice to Lucent prior to the effective
date of such price changes and shall apply the new price to Orders on hand not
shipped as of the effective date of a price increase.

10. BILLING AND PAYMENT; TAXES

    (a) Invoices for Products and Licensed Materials will be sent upon shipment
or as soon thereafter as practicable. Agere may make partial shipments of
Lucent's orders, unless Lucent specifically states in its order that each item
will be shipped complete. Such partial shipments shall be separately invoiced.

                                       9
<PAGE>   11
    (b) Invoices for services rendered to Lucent, if any, will be sent as the
work is performed or as soon thereafter as practicable.

    (c) Lucent shall pay the invoiced amount, less any disputed items, for
receipt by Agere within thirty (30) days from the date of invoice. Delinquent
payments shall be subject to a late payment charge of one and one-half per cent
per month or the maximum legal rate, whichever is lower. Each shipment shall
constitute an independent transaction, and Lucent shall pay for same in
accordance with the specified payment terms. Lucent shall notify Agere of any
claim on an invoice within three (3) months from the date of invoice.

    (d) The parties agree taxes shall be allocated as follows:

        (i) Lucent shall bear all taxes, duties, levies and similar charges (and
any related interest and penalties), however designated, imposed as a result of
the existence or operation of this Agreement, except (i) any tax imposed upon
Agere in a jurisdiction other than the jurisdiction under the laws of which
Agere was formed (hereinafter referred to as the "Resident Jurisdiction") if
such tax is allowable as a credit against the Resident Jurisdiction income taxes
of Agere; and (ii) any net income tax imposed upon Agere by any government
entity within Agere's Resident Jurisdiction. In order for the exception
contained in (i) to apply, Lucent must furnish Agere with such evidence as may
be required by the Resident Jurisdiction taxing authorities to establish that
such tax has been paid within thirty (30) days of issuance of notice by the
local taxing authority so that Agere may claim the credit.

        (ii) If Lucent is required to bear a tax, duty, levy or similar charge
pursuant to the preceding paragraph, Lucent shall pay such tax, duty, levy or
similar charge and any additional amounts as are necessary to ensure that the
net amounts received by Agere hereunder after all such payments or withholdings
equal the amounts to which Agere is otherwise entitled under this Agreement as
if such tax, duty, levy or similar charge did not exist.

        (iii) Agere shall not collect an otherwise applicable tax if Lucent's
purchase is exempt from Agere's collection of such tax and a valid tax exemption
certificate is furnished by Lucent to Agere.

        (iv) All prices mentioned in this Agreement are exclusive of value added
taxes, turnover taxes, sales taxes or similar taxes, including any related
interest and penalties (hereinafter all referred to as "VAT"). In the event that
any VAT is payable on the Products and/or services supplied by Agere to Lucent
under this Agreement, this VAT shall be added to the prices mentioned and shall
be for the account of Lucent. If VAT on the supplies of Agere is payable by
Lucent under a reverse charge procedure (i.e., shifting of liability, accounting
or payment requirement to recipient of supplies), Lucent shall ensure that Agere
will not effectively be held liable for this VAT by the relevant taxing
authorities or other

                                       10
<PAGE>   12
parties. Where applicable, Agere shall use its reasonable commercial efforts to
ensure that its invoices to Lucent are issued in such a way that these invoices
meet the requirements for deduction of input VAT by Lucent, if Lucent is
permitted by law to do so.

11. TITLE AND RISK OF LOSS; DELIVERY

    (a) Title and risk of loss to Products shall pass to Lucent upon delivery to
Lucent. Title to all Software (whether or not part of Firmware) furnished by
Agere and all copies thereof made by Lucent, including translations,
compilations, and partial copies are, and shall remain, the property of Agere.
Lucent shall notify Agere promptly of any claim with respect to loss which
occurs while Agere has the risk of loss and shall cooperate in every reasonable
way to facilitate the settlement of any claim. For purposes of this section,
"delivery" shall mean the point at which Agere or Agere's supplier or agent
turns over possession of the Product to Lucent, Lucent's employee, a common
carrier, Lucent's warehouse, or other Lucent agent and not necessarily the final
destination shown on the order. Nothing herein shall, during the period a Party
has the risk of loss or damage to an item, relieve the other Party of
responsibility for loss or damage to the item resulting from the acts or
omissions of such other Party, its employees or agents.

    (b) All shipment shall be "ex works," Agere's factory of origin, warehouse
or designated supplier location, as such term is described in Incoterms 2000
published by the International Chamber of Commerce.

    (c) Lucent's rejection (or revocation of acceptance) of a non-conforming
shipment must be made by written notice within ten (10) days after delivery.
Thereafter, Lucent shall have recourse to the appropriate warranty as its
exclusive remedy for non-conformity. Products in a rejected shipment shall be
returned to Agere in original or equivalent packaging in accordance with Agere's
previously supplied written instructions together with a written statement of
the reason for such rejection.

12. INDEMNITY BY LUCENT

Lucent agrees to indemnify and save harmless Agere from and against any losses,
damages, claims, demands, suits and liabilities (including reasonable attorneys'
fees) awarded against Agere by final judgment (or by settlement approved by
Lucent) that arise out of or result from injuries or death to persons or damage
to property caused by Lucent's acts or omissions, or those of persons furnished
by Lucent or in any way arising out of Lucent's performance of this Agreement;
or assertions made by persons furnished by Lucent under Workers' Compensation or
similar acts; or claims, demands, suits, liabilities or costs arising out of or
in any way relating to Lucent's performance or failure of performance under this
Agreement provided 1) Agere promptly notifies Lucent in writing of any suits,
claims or demands against Agere for which Lucent is responsible under this
indemnity, 2) Agere gives Lucent full opportunity and authority to assume the
sole defense of and settle such suits and 3) Agere furnishes to Lucent upon
request all information and assistance available

                                       11
<PAGE>   13
to Agere for defense against any such suit, claim or demand. Lucent's obligation
to indemnify and save Agere harmless shall survive the expiration or earlier
termination of this Agreement. Lucent's liability under this indemnity, however,
shall in no event exceed the greater of $500,000 or the value of the specific
Product or Licensed Material giving rise to the claim for any one occurrence.
This indemnity is in lieu of all other obligations of Lucent, express or
implied, in law or inequity, to indemnify Agere (except pursuant to Section 15,
"Infringement of Patents, Trademarks and Copyrights").

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY SHALL BE
LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO LOST PROFITS, SAVINGS OR REVENUES OF ANY KIND,
WHETHER OR NOT ANY SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THIS PROVISION SHALL SURVIVE FAILURE OF AN EXCLUSIVE REMEDY.

13. USE OF INFORMATION

    (a) The term "Information" means all documentation (other than promotional
and customer instructional or product description materials), technical
information, and confidential business information and pricing information in
whatever form recorded, which bears a legend restricting its use or
dissemination or which the party providing such information (the "Producing
Party") otherwise indicates is confidential, furnished by the Producing Party to
the other Party (the "Receiving Party"), and all copies thereof including
translations, compilations and partial copies. All Information which the
Producing Party furnishes to the Receiving Party under or in contemplation of
this Agreement shall remain the property of the Producing Party.

    (b) Unless the Producing Party consents in writing, the Receiving Party
shall (i) hold the Information in confidence, except for any part of such
Information which is known to it free of any obligation to keep it in confidence
or which is now generally known to the public or which later becomes generally
known to the public through acts not attributable to the Receiving Party, (ii)
not reproduce or copy such Information, in whole or in part, except as necessary
for use as authorized by the Producing Party, (iii) if reproduction is
permitted, include any copyright and proprietary notices on all copies and mark
all media containing such copies with a warning that the Information is subject
to restrictions contained in an agreement with the Producing Party and that such
Information is the property of the Producing Party, and (iv) return or destroy
such Information when no longer needed or, if such Information is recorded on an
erasable storage medium, erase it.

    (c) The Receiving Party shall have no obligation to keep confidential
information that: (i) was previously known to it free of any confidentiality
obligation, (ii) was independently developed by it, (iii) is or becomes publicly
available other than by unauthorized disclosure, (iv) is disclosed to third
parties by the disclosing party without

                                       12
<PAGE>   14
restriction, or (v) is received from a third party without violation of any
confidentiality obligation.

    (d) If a party is faced with legal action or a requirement under government
regulations to disclose or make available proprietary or proprietary restricted
information received hereunder, such party shall forthwith notify the furnishing
party and, upon request of the latter, cooperate in contesting such action or
requirement at the requesting party's expense. Neither party shall be liable for
damages for any disclosure or unauthorized access pursuant to legal action or
government regulations or for inadvertent disclosure, access, or use if the
customary degree of care as it uses with respect to its own proprietary or
proprietary restricted information has been exercised and if, upon discovery of
such inadvertent disclosure, access, or use the furnishing or receiving party
has endeavored to prevent any further (inadvertent or otherwise) disclosure or
use.

    (e) Except for the receiving party's obligation to keep confidential pricing
information, the obligations imposed by this Section shall survive for a period
of three (3) years after termination or expiration of this Agreement. The
obligations imposed by this Section with respect to Information shall survive
termination or expiration of this Agreement.

    (f) the Receiving Party may use such Information only to evaluate, order,
market, or provide service with respect to Products or Licensed Materials
furnished by Agere hereunder.

14. LICENSE FOR LICENSED MATERIALS

    (a) The license for Licensed Materials with "Tear-Me" or "Tear-Open"
licenses shall be as provided in those licenses and shall be provided by Lucent
in their unopened original package to the End-User Customer.

    (b) For all other Licensed Materials which are provided to Lucent for its
own use, Agere retains title to the Licensed Materials and grants Lucent a
personal, non-transferable (except as provided in Section 14(c) below) and
non-exclusive license to Use Licensed Materials in the Territory on a single
Designated Processor for its own business operations. The Licensed Materials
shall not be copied in whole or in part except as necessary for authorized use
and each copy shall bear the same copyright and proprietary marks as the
original. Lucent shall not reverse engineer, decompile or disassemble any
Licensed Materials.

    (c) Agere grants to Lucent the right to sublicense Licensed Materials to its
Customers and End-User Customers only, provided Lucent obtains a written license
agreement from its sublicensee (unless a sub-license pursuant to Section 14(a)
applies) which provides that:

                                       13
<PAGE>   15
      (i) The end-user is granted a personal, nontransferable and nonexclusive
      right to use the Licensed Materials in the Territory on a single
      Designated Processor for its own business operations;

      (ii)  No title to the Licensed Materials is transferred;

      (iii) The Licensed Materials shall not be reproduced or copied in whole
      or in part except as necessary for authorized use, and such copy shall
      contain the same copyright notice and proprietary marking as appears on
      the original;

      (iv) The end-user shall not reverse engineer, decompile or disassemble any
      Licensed Materials contained in such Licensed Materials.

15. INFRINGEMENT OF PATENTS, TRADEMARKS AND COPYRIGHTS

    (a) In the event of any claim, action, proceeding or suit by a third party
against Lucent alleging an infringement of any patent, copyright, or trademark,
or a violation of any trade secret or proprietary rights by reason of the use or
sale of any Product or Licensed Materials furnished by Agere to Lucent under
this Agreement, Agere at its expense, will defend Lucent subject to the
conditions and exceptions stated below. Agere will reimburse Lucent for any
cost, expense or attorney's fee, incurred at Agere's written request or
authorization, and will indemnify Lucent against any liability assessed against
Lucent by final judgment on account of such infringement or violation arising
out of such use.

    (b) If Lucent's use or sale shall be enjoined or in Agere's opinion is
likely to be enjoined, Agere will, at its expense and at its option, either (1)
replace the enjoined Product or Licensed Materials furnished pursuant to this
Agreement with a suitable substitute free of any infringement, (2) modify it so
that it will be free of the infringement, or (3) procure for Lucent or Lucent's
customer a license or other right to use it, (4) procure for Lucent a right to
sell it. If none of the foregoing options is practical, Agere will remove the
enjoined Product or Licensed Materials and refund to Lucent any amounts paid to
Agere less a reasonable charge for any actual period of use.

    (c) Lucent shall give Agere prompt written notice of all such claims,
actions, proceedings or suits alleging infringement or violation and Agere shall
have full and complete authority to assume the sole defense thereof, including
appeals, and to settle same. Lucent shall, upon Agere's request and at Agere's
expense, furnish all information and assistance available to Lucent and
cooperate in every reasonable way to facilitate the defense and/or settlement of
any such claim, action, proceeding or suit.

    (d) No undertaking of Agere under this clause shall extend to any such
alleged infringement or violation to the extent that it: (1) arises from
adherence to design modifications, specifications, drawings, or written
instructions which Agere is directed by Lucent to follow, but only if such
alleged infringement or violation does not reside in

                                       14
<PAGE>   16
corresponding commercial Product or Licensed Materials of Agere's design or
selection; or (2) arises from adherence to instructions to apply Lucent's
trademark, trade name, or other company identification; or (3) resides in a
Product or Licensed Materials which is not of Agere's origin and which is
furnished by Lucent to Agere for use under this Agreement; or (4) relates to
uses of Product or Licensed Materials provided by Agere in combinations with
other Product or Licensed Materials, furnished either by Agere or others, which
combination was not installed, recommended or otherwise approved by Agere. In
the foregoing cases numbered (1) through (4), Lucent will defend and save Agere
harmless, subject to the same terms and conditions and exceptions stated above
with respect to Agere's rights and obligations under this clause. Provided that
with respect to (4) above, Lucent will not be obligated to indemnify Agere when
the combination was not installed, recommended, or otherwise approved by Lucent.

    (e) The liability of Agere and Lucent with respect to any and all claims,
actions, proceedings, or suits by third parties alleging infringement of
patents, trademarks, or copyrights or violation of trade secrets or proprietary
rights because of, or in connection with, any items furnished pursuant to this
Agreement shall be limited to the specific undertakings contained in this
clause.

16. WARRANTY TO LUCENT

The Warranty shall be as set forth in Schedule 1.2.

17. LIMITATION OF LIABILITY

    (a) Except for personal injury and property damage claims brought against
Lucent, as to which Lucent's sole remedies are set forth in Section 18,
Indemnity By Agere, and except for infringement claims as to which Lucent's
remedies are set forth in Section 15, Infringement Of Patents, Trademarks And
Copyrights, Agere shall in no event be liable to Lucent or to Lucent's customers
or to third parties for any incidental, consequential or any other indirect loss
or damage or for lost profits or revenue of any kind (including those associated
with sale of products and monitoring service agreements) or for labor expense,
travel expense, or costs of on-site repair, removal or reinstallation of
products at any time and for any reason, arising out of this Agreement (or an
Agreement between Lucent and Lucent's customers and their customers) or any
obligation resulting therefrom, or the use or performance of any Products or
Licensed Material, whether in action for or arising out of breach of contract,
tort, statute or otherwise.

    (b) Agere's sole and entire liability, and Lucent's sole remedy and Lucent's
customers' sole remedy, with regard to the alleged function or malfunction or
conformance or non-conformance or condition of Products sold hereunder is as set
forth in Section 16, "Warranty To Lucent."

                                       15
<PAGE>   17
    (c) Agere shall have no liability to Lucent or to anyone claiming under or
through Lucent or to Lucent's customers based on any alleged violation by Lucent
of consumer fraud or consumer protection or false advertising statues of any
jurisdiction, including but not limited to the Federal Trade Commission Act and
similar laws in the various states.

    (d) NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY
SHALL BE LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL
DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, SAVINGS OR REVENUES OF ANY
KIND, WHETHER OR NOT ANY SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THIS PROVISION SHALL SURVIVE FAILURE OF AN EXCLUSIVE REMEDY.

18. INDEMNITY BY AGERE

Agere agrees to indemnify and save harmless Lucent from and against any losses,
damages, claims, demands, suits and liabilities (including reasonable attorneys'
fees) awarded against Lucent by final judgment (or by settlement approved by
Agere) that arise out of or result from injuries or death to persons or damage
to property caused by Agere's acts or omissions, or those of persons furnished
by Agere or in any way arising out of Agere's performance of this Agreement; or
assertions made by persons furnished by Agere under Workers' Compensation or
similar acts; or claims, demands, suits, liabilities or costs arising out of or
in any way relating to Agere's performance or failure of performance under this
Agreement provided 1) Lucent promptly notifies Agere in writing of any suits,
claims or demands against Lucent for which Agere is responsible under this
indemnity, 2) Lucent gives Agere full opportunity and authority to assume the
sole defense of and settle such suits and 3) Lucent furnishes to Agere upon
request all information and assistance available to Lucent for defense against
any such suit, claim or demand. Agere's obligation to indemnify and save Lucent
harmless shall survive the expiration or earlier termination of this Agreement.
Agere's liability under this indemnity, however, shall in no event exceed the
greater of $500,000 or the value of the specific Product or Licensed Material
giving rise to the claim for any one occurrence. This indemnity is in lieu of
all other obligations of Agere, express or implied, in law or inequity, to
indemnify Lucent (except pursuant to Section 15, "Infringement of Patents,
Trademarks and Copyrights").

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY SHALL BE
LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO LOST PROFITS, SAVINGS OR REVENUES OF ANY KIND,
WHETHER OR NOT ANY SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THIS PROVISION SHALL SURVIVE FAILURE OF AN EXCLUSIVE REMEDY.

19. TRADEMARKS AND OTHER INDICIA

                                       16
<PAGE>   18
    (a) Products and Licensed Materials procured hereunder and the packaging
therefor may bear certain tradenames, trademarks, trade devices, logos, codes or
other symbols of Agere (herein "Indicia"). Agere hereby grants Lucent permission
to use Indicia in Lucent's marketing and advertising of, and in Lucent's
publicity relating to, the Products and Licensed Materials, provided such use
conforms to Agere standards and guidelines relating thereto which Agere may
furnish from time to time. Lucent may not conduct business under Agere's name or
logo. Lucent may not use any of Agere's Indicia or variations thereof to
identify Lucent or Lucent's products or services, and Lucent may not use any of
Agere's Indicia in a manner that is likely to confuse the public concerning the
relationship of the parties. Lucent's use of Indicia shall inure to the benefit
of Agere and shall not invest in Lucent any rights in or to the Indicia. All
uses of Indicia by Lucent shall be subject to prepublication or pre-use review
and written approval by Agere. If, in Agere's judgment, any use of Indicia by
Lucent is deemed detrimental to the Indicia or Agere's reputation, or is deemed
otherwise undesirable, Agere may withdraw such permission without liability as a
result thereof.

    (b) Agere hereby grants on the terms set forth in Section 19(a) permission
to use the word "ORiNOCO" in Universal Resource Locators ("URLs") provided,
however, that Lucent shall not use the word "ORiNOCO" in the top level domain
name of any URL.

20. LEGISLATION AND GOVERNMENT REGULATIONS

Each party shall comply with all applicable requirements of all applicable laws,
ordinances, administrative rules and regulations. Each party shall contractually
require its subcontractors and agents to comply with all such legal requirements
as well. If requested by a party, the other party shall advise in writing of the
identity and addresses of its subcontractors, or agents in connection with the
Products.

                                       17
<PAGE>   19
21. AMENDMENT OF AGREEMENT

No provision of this Agreement shall be deemed waived, amended, supplemented or
modified by any party, unless such waiver, amendment, supplement or modification
is in writing and signed by the authorized representative of the party against
whom it is sought to enforce such waiver, amendment, supplement or modification.

22. TERMINATION OF AGREEMENT

    (a) Either party may terminate this Agreement, immediately, upon twenty-four
(24) hours written notice:

      (i) if the other party files a petition in bankruptcy, or is adjudicated
      bankrupt, or makes a general assignment for the benefit of creditors,
      enters into a receivership, or becomes insolvent, or is otherwise unable
      to meet its business obligations for a period of six (6) months. Such
      party shall promptly and fully inform the other party of the imminence or
      occurrence of any event described in this subparagraph; or

      (ii) in the event of change in the controlling ownership of one party or
      in the event of a sale or assumption of all or substantially all of the
      assets of one party, if such change, sale or assumption is unacceptable to
      the other party.

    (b) Either party may terminate this Agreement if the other party breaches
any of the material terms and conditions of this Agreement and the other party
fails to cure such breach within thirty (30) days after written notice thereof
from the non-breaching party.

    (c) Notwithstanding any other terms or provisions of this Agreement or other
arrangements agreed to by the parties, at termination of this Agreement Agere
may accelerate the due date of all invoices for Products such that they shall
become immediately due and payable on the effective date of termination.

    (d) Upon notice of termination, Agere shall be entitled to reject all or any
part of any orders received from Lucent after notice but prior to the effective
date of termination. Notwithstanding any credit terms made available to Lucent
prior to that time, Agere may require that any Products shipped after notice of
termination and prior to effective date of termination shall be paid for by
certified or cashier's check prior to shipment.

23. SURVIVAL OF OBLIGATIONS

The respective obligations of Lucent and Agere under this Agreement, which by
their nature would continue beyond the termination, cancellation or expiration
hereof, shall survive termination, cancellation or expiration hereof, including
by way of example and not by limitation, Billing and Payment, Use of
Information, Limitation of Liability, Trademarks and Arbitration.

                                       18
<PAGE>   20
24. FORCE MAJEURE

Except with respect to Lucent's obligation to make timely payments, neither
party shall be held responsible for any delay or failure in performance to the
extent that such delay or failure is caused by fires, strikes, embargoes,
explosions, earthquakes, floods, wars, water, the elements, labor disputes,
government requirements, civil or military authorities, acts of God or by the
public enemy, inability to secure raw materials or transportation facilities,
acts or omissions of carriers or suppliers or other causes beyond its control
whether or not similar to the foregoing.

25. ASSIGNMENT

Except as provided in this section, neither party shall assign this Agreement or
any right or interest under this Agreement, nor delegate any work or obligation
to be performed under this Agreement, (an "assignment") without the other
party's prior written consent. Any attempted assignment in contravention of this
shall be void and ineffective. Nothing shall preclude a party from employing a
subcontractor in carrying out its obligations under this Agreement. A party's
use of such subcontractor shall not release the party from its obligations under
this Agreement. Notwithstanding the foregoing, either Party has the right to
assign this Agreement and to assign its rights and delegate its duties under
this Agreement, in whole or in part, at any time and without the other Party's
consent, to any present or future subsidiary or Affiliate of the assigning
Party, to any entity that succeeds to the business of any such party that
relates to this Agreement, or to any combination of the foregoing. Such
assignment or delegation shall release the assigning Party from any further
obligation or liability thereon. The assigning Party shall give the other Party
prompt written notice of the assignment. For the purposes of this section, the
term "Agreement" includes this Agreement, any subordinate agreement placed under
this Agreement and any order placed under this Agreement or subordinate
agreement.

26. SEVERABILITY

If any of the provisions of this Agreement shall be invalid or unenforceable,
such invalidity or unenforceability shall not invalidate or render unenforceable
the entire Agreement, but rather the entire Agreement shall be construed as if
not containing the particular invalid or unenforceable provision or provisions,
and the rights and obligations of each party shall be construed and enforced
accordingly. However, in the event such provision is considered an essential
element of this Agreement, the parties shall promptly negotiate a replacement
thereof.

                                       19
<PAGE>   21
27. RELEASE VOID

Neither party shall require releases or waivers of any personal rights from
representatives of the other in connection with visits to its premises and both
parties agree that no such releases or waivers shall be pleaded by them in any
action or proceeding.

28. NONWAIVER

No course of dealing, course of performance or failure of either party strictly
to enforce any term, right or condition of this Agreement shall be construed as
a waiver of any term, right or condition.

29. CHOICE OF LAW

The Parties are familiar with New York commercial law, have been guided by New
York commercial law in their negotiation of this matter, conduct substantial
business in New York and desire to avoid uncertainty and disputes concerning the
law that will govern the agreement between the Parties. Accordingly, the Parties
expressly intend and agree that the construction interpretation and performance
of this Agreement and all transactions under it shall be governed by the laws of
the State of New York, excluding its choice of law rules and excluding the
Convention for the International Sale of Goods.

30. NOTICES

All notices under this Agreement shall be in writing and shall be given by
confirmed facsimile, nationally recognized overnight courier, or by certified or
registered mail, addressed to Lucent and Agere at the following addresses:

   If to Lucent, to:

   Lucent Technologies Inc.
   600 Mountain Avenue
   Murray Hill, New Jersey 07974
   Attn: Chief Supply Officer

   with a copy to:

   Lucent Technologies Inc.
   600 Mountain Avenue
   Murray Hill, New Jersey 07974
   Attn: General Counsel

                                       20
<PAGE>   22
   If to Agere, to:

   Agere Systems Nederland BV
   Zadelstede 1-10
   3431 JZ Nieuwegein
   The Netherlands
   Attn: Director of Product Management

   with a copy to:

   Agere Systems Inc.
   555 Union Blvd.
   Allentown, PA 18103
   Attn: General Counsel

Either party may designate a different address for purposes of this Section 30,
Notices, by notice forwarded to the other party pursuant hereto. Such notices
shall be deemed to have been given when received.

31. PARAGRAPH HEADINGS

The paragraph headings contained in this Agreement are for convenience only and
are not intended to affect the meaning or interpretation of this Agreement.

32. INTERPRETATION

Words in the singular shall be held to include the plural and vice versa and
words of one gender shall be held to include the other genders as the context
requires. The terms "hereof," "herein," and "herewith" and words of similar
import shall, unless otherwise stated, be construed to refer to this Agreement
as a whole (including all of the schedules, exhibits and appendices hereto) and
not to any particular provision of this Agreement. Article, section, exhibit,
schedule and appendix references are to the articles, sections, exhibits,
schedules and appendices to this Agreement unless otherwise specified. The word
"including" and words of similar import when used in this Agreement shall mean
"including, without limitation," unless the context otherwise requires or unless
otherwise specified. The word "or" shall not be exclusive. References to
"Schedule" shall include all sub-schedules thereto, but reference to a
sub-schedule (e.g. Schedule 1.1) shall refer solely to the specific identified
sub-schedule. Unless expressly stated to the contrary in this Agreement, all
references to "the date hereof," "the date of this Agreement," "hereby" and
"hereupon" and words of similar import shall all be references to the Effective
Date, regardless of any amendment or restatement hereof.

33. MEDIATION, DISPUTE RESOLUTION

                                       21
<PAGE>   23
    (a) The provisions set forth in this Section 33 shall apply to all disputes,
controversies or claims (whether arising in contract, tort or otherwise) that
may arise out of or relate to, or arise under or in connection with this
Agreement, or the transactions contemplated hereby (including all actions taken
in furtherance of the transactions contemplated hereby), or the commercial or
economic relationship of the parties relating hereto.

    (b) It is the intent of the parties to use their respective reasonable best
efforts to resolve expeditiously and on a mutually acceptable negotiated basis
any dispute, controversy or claim between them with respect to the matters
covered hereby that may arise from time to time. In furtherance of the
foregoing, any party involved in a dispute, controversy or claim may deliver a
notice (an "Escalation Notice") demanding an in-person meeting involving
representatives of the parties at a senior level of management of the parties
(or if the parties agree, of the appropriate strategic business unit or division
within such entity). A copy of any such Escalation Notice shall be given to the
General Counsel, or like officer or official, of each party involved in the
dispute, controversy or claim (which copy shall state that it is an Escalation
Notice pursuant to this Agreement). Any agenda, location or procedures for such
discussions or negotiations between the parties may be established by the
parties from time to time; provided, however, that the parties shall use
commercially reasonable efforts to meet within thirty (30) days of the
Escalation Notice.

    (c) If the parties are not able to resolve the dispute, controversy or claim
through the escalation process referred to above, then the matter shall be
referred to mediation. The parties shall retain a mediator to aid in their
discussions and negotiations by informally providing advice to the parties. Any
opinion expressed by the mediator shall be strictly advisory and shall not be
binding on the parties, nor shall any opinion expressed by the mediator be
admissible in any other proceeding. The mediator may be chosen from a list of
mediators previously selected by the parties or by other agreement of the
parties. Costs of the mediation shall be borne equally by the parties involved
in the matter, except that each party shall be responsible for its own expenses.
Mediation shall be a prerequisite to the commencement of any action by either
party.

    (d) In the event that any party, after complying with the provisions set
forth in the preceding two paragraphs, desires to commence an action, such party
may submit the dispute, controversy or claim (or series of related disputes,
controversies or claims) giving rise thereto to a court of competent
jurisdiction.

    (e) Unless otherwise agreed in writing, the parties will continue to provide
service and honor all other commitments under this Agreement during the course
of dispute resolution pursuant to the provisions of this Section with respect to
all matters not subject to such dispute, controversy or claim.

34. COUNTERPARTS; ENTIRE AGREEMENT; CORPORATE POWER

                                       22
<PAGE>   24
    (a) This Agreement may be executed in one or more counterparts, all of which
shall be considered one and the same agreement.

    (b) This Agreement and any exhibits, schedules and appendices hereto contain
the entire agreement between the parties with respect to the subject matter
hereof, supersede all previous agreements, negotiations, discussions, writings,
understandings, commitments and conversations with respect to such subject
matter and there are no agreements or understandings between the parties other
than those set forth or referred to herein.

    (c) Each party represents as follows:

      (i) each has the requisite corporate or other power and authority and has
      taken all corporate or other action necessary in order to execute, deliver
      and perform this Agreement and to consummate the transactions contemplated
      hereby; and

      (ii) this Agreement has been duly executed and delivered by it and
      constitutes a valid and binding agreement enforceable in accordance with
      the terms thereof.

                                       23
<PAGE>   25
IN WITNESS WHEREOF, the parties have caused this ORiNOCO PRODUCT PURCHASE
AGREEMENT to be executed by their duly authorized representatives as of the
Effective Date.

                                       LUCENT TECHNOLOGIES INC.

                                       By:  /s/ ROBERT C. HOLDER
                                          ___________________________
                                       Name:  Robert C. Holder
                                       Title: Executive Vice President

                                       AGERE SYSTEMS INC.

                                       By:  /s/ JOHN T. DICKSON
                                          ___________________________
                                       Name:  John T. Dickson
                                       Title: President and
                                              Chief Executive Officer

                                       24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]