Document:

Prepared and filed by St Ives Burrups

                                                                   Exhibit 10.17

                             DEVELOPMENT AGREEMENT

                                    between

                            LUCENT TECHNOLOGIES INC.

                                      and

                           MPHASE TECHNOLOGIES, INC.

                       Effective as of September 15, 2003

                 Relating to Broadcast Television Switch (BTS)

                              DEVELOPMENT AGREEMENT

                               TABLE OF CONTENTS

ARTICLE 1- DEVELOPMENT PROJECT

1.01     Scope of Development Project
1.02     Cost of Development Project

ARTICLE II- INTELLECTUAL PROPERTY

2.01     Existing Intellectual Property
2.02     Rights in Developed Information
2.03     Rights in Inventions
2.04     Patent Licenses
2.05     Licenses to Technology
2.06     No Other Licenses

ARTICLE III - TERM AND TERMINATION

3.01     Termination
3.02     Survival

ARTICLE IV- PROTECTION OF INFORMATION

4.01     Lucent and Company Confidential Information
4.02     Joint Information
4.03     Exceptions to Confidentiality
4.04     Export Control

ARTICLE V - MISCELLANEOUS PROVISIONS

5.01     Compliance with Rules and Regulations and Indemnification
5.02     Agreement Prevails
5.03     Accuracy
5.04     Nothing Construed
5.05     Disclaimer
5.06     Addresses
5.07     Integration
5.08     Nonassignability
5.09     Choice of Law
5.10     Agreement Confidentiality
5.11     Dispute Resolution
5.12     Relationship Between Parties

MPhase, Inc. DEVELOPMENT AGREEMENT

5.13     Force Majeure
5.14     Headings
5.15     Waiver
5.16     Severability
5.17     Execution In Counterparts
5.18     Payments and Taxes

APPENDIX A - DEFINITION
APPENDIX B - STATEMENT OF WORK

                                       2

MPhase, Inc. DEVELOPMENT AGREEMENT

                             DEVELOPMENT AGREEMENT

THIS DEVELOPMENT AGREEMENT ("Agreement"), effective as of September 15, 2003
("Effective Date"), is made by and between Lucent Technologies Inc., a Delaware
corporation, with offices located at 600 Mountain Avenue, Murray Hill, New
Jersey 07974-0636 ("Lucent") and mPhase Technologies Inc., a New Jersey
corporation, with offices located at 587 Connecticut Avenue, Norwalk, CT 06854
("Company"). Lucent and Company are sometimes referred to herein individually as
a "Party" and collectively as the "Parties". The Parties agree as follows:

                                    ARTICLE I
                               DEVELOPMENT PROJECT

1.01 S cope of Development Project

Lucent shall, during the Development Period, use reasonable efforts to perform
the Development Project described in the Statement of Work in Appendix B
pursuant to the schedule contained therein, and to provide the Deliverables to
Company. The Deliverables may include Technical Information, Hardware and/or
Software. Representatives for Lucent and Company shall meet as needed, either in
person or by telephone, to evaluate and discuss the progress of the Development
Project. The parties may, from time to time, agree upon additional statements
of work that will likewise be appended to and become a part of this Agreement.

1.02 Cost of Development Project

The cost of the Development Project to be paid by Company to Lucent (and terms
of payment, which differ from Lucent's standard terms in a manner that is
intentionally favorable to the Company) are set forth in Appendix B.

                                   ARTICLE II
                              INTELLECTUAL PROPERTY

2.01 Existing Intellectual Property

         Except as provided in Sections 2.04 and 2.05 below, all right, title
and interest in and to inventions, patents, works of authorship, trade secrets,
know-how or any other intellectual property existing prior to the Effective Date
of this Agreement shall remain vested in the Party which owns it immediately
prior to the Effective Date,

------------------
Any term in capital letters which is defined in Appendix A - Definitions shall
have the meaning specified therein.

                                       3

MPhase, Inc. DEVELOPMENT AGREEMENT

2.02 Rights in Developed Information

         (a) Except as specifically provided otherwise in this Agreement, all
information created by employees, contractors, consultants or agents of either
Party during the Development Period and as a direct result of work performed
under this Agreement, which information is necessary to enable Company to make
or have made Licensed Products, whether the information is created solely by
employees, contractors, consultants or agents of one Party or jointly by a
contribution from employees, contractors, consultants or agents of both parties,
shall be termed "Developed Information". Notwithstanding the preceding sentence,
Developed Information shall not include (a) the portion of Lucent Information
that is defined in Section 2.01 above or (b) any part of any Deliverable that is
a general purpose element having one or more uses that are independent of use in
connection with a Licensed Product; Lucent shall retain all right, title and
interest in and to both of the items (a) and (b), subject to the license set
forth in Section 2.05.

         (b) Developed Information, including source code, design schematics and
associated engineering documentation shall be owned by Company, subject,
however, to retention by Lucent of a non-exclusive, royalty-free, world wide,
perpetual license to Lucent or its Subsidiaries to use the Developed Information
(a) for its own internal business purposes, and/or (b) in connection with
products, systems or services other than (i) providing digital television over
DSL transmission facilities, and (ii) providing a low bit rate encoder
substantially as described in Appendix B, section entitled "Low Bit Rate
Encoder".

         (c) Nothing contained in this Agreement shall preclude either party
from including Developed Information in a patent application for a sole
invention as described in Section 2.03(a) or for a joint invention as described
in Section 2.03(b).

2.03 Rights in Inventions

(a) Sole Inventions

         (i) All right, title and interest in and to inventions created solely
by a Party during the Development Period and arising out of the Development
Project, which inventions are not made jointly with employees, contractors,
consultants or agents of the other Party, shall remain vested in the Party which
created it.

         (ii) Either Party may file patent applications for its sole inventions,
but neither Party shall be required to file such patent applications, secure any
patent or maintain any patent.

                                       4

MPhase, Inc. DEVELOPMENT AGREEMENT

(b) Joint Inventions

         (i) For purposes of this Agreement, a Joint Invention shall mean any
invention made by one or more of Lucent's employees, contractors, consultants or
agents working on the Development Project jointly with one or more of Company's
employees, contractors, consultants or agents, which Joint Invention is first
conceived or first actually reduced to practice during the Development Project.

         (ii) The following provisions shall apply only with respect to any
Joint Invention:

         (A)      Lucent shall have the first right to file a patent
                  application in the United States on such Joint Invention and
                  it shall notify Company whether it elects to file such
                  application either before or at the time the development
                  project is complete.

         (B)      Company shall have the right to file a patent application in
                  the United States on such Joint Invention in any case in which
                  Lucent does not elect to file pursuant to Section 2.05(ii)(A)
                  hereof.

         (C)      The Party that elects to file a patent application on such
                  Joint Invention in the United States shall have the first
                  right of election to file a corresponding patent application
                  in each foreign country or, where applicable, community of
                  countries. Such Party shall notify the other Party of those
                  foreign countries, if any, in which it elects to file such
                  patent applications. The other Party shall have the right to
                  file patent applications on such Joint Inventions in all other
                  foreign countries.

         (D)      The expenses for preparing, filing and prosecuting each
                  application, and for issue of the respective patents, shall be
                  borne by the Party which prepares and files the application,
                  except that expenses associated with official patent office
                  fees, taxes, annuities and translation costs, if applicable,
                  shall be equally divided between Lucent and Company, and paid
                  as specified in Section 2.03(b)(ii)(E). The other Party shall
                  have the right to review and comment on each such application
                  prior to its filing, and shall furnish the filing Party with
                  all documents, information, or other assistance that may be
                  necessary for the preparation, filing and prosecution of each
                  such application.

         (E)      In the case of an application for patent that is filed in a
                  country that requires the translation of the application or
                  payment of taxes, maintenance fees or annuities on a pending
                  application or on an issued patent, the Party that files the
                  application shall pay such taxes, maintenance fees or
                  annuities on the pending application or the issued patent and
                  shall invoice the other Party for one-half (1/2) of all such
                  expenses, which shall be payable by the other Party within
                  thirty (30) days of the invoice.

                                       5

MPhase, Inc. DEVELOPMENT AGREEMENT

         (F)      In the event that a Party does not wish to pay its share of
                  expenses associated with a patent application or an issued
                  patent in any country as specified in Section 2.03(b)(ii)(D),
                  such Party shall notify the other Party in writing of its
                  refusal to share in such expenses, and shall assign all its
                  right, title and interest in such patent application or issued
                  patent in such country to the other Party, subject to existing
                  licenses and rights granted by such Party to third parties.
                  Concurrent with the execution by such Party of all necessary
                  documents associated with such an assignment, the other Party
                  shall grant to the Party and its Subsidiaries personal,
                  non-transferable, nonexclusive, royalty-free, licenses (with
                  no sublicensing rights) under such patent application or
                  issued patent to make, have made, use, lease, sell, offer for
                  sale and import. Such nonexclusive licenses shall be for any
                  and all products and services of the kinds furnished or used
                  in the operation of the Party's and its Subsidiaries'
                  businesses.

         (G)      Subject to the provisions of Section 2.03(b)(ii)(F), the
                  Parties shall each have an equal title interest in each
                  application and patent for such Joint Inventions, with Company
                  holding an undivided one-half (1/2) interest and Lucent
                  holding an undivided one-half (1/2) interest.

         (H)      Subject to the provisions of Section 2.03(b)(ii)(F), each
                  Party shall have the right to grant nonexclusive licenses
                  under applications and patents covering such Joint Inventions,
                  and each Party hereby consents to the granting of such
                  licenses by the other Party. Each Party shall have the right
                  to retain all royalties that it receives for granting
                  licenses, without accounting therefor to the other Party.

2.04 Patent Licenses

         (a) Upon payment of the applicable fees as set forth in Appendix B and
subject to the provisions of this Agreement, Lucent hereby grants to Company a
personal, non-transferable and non-exclusive license under Lucent Patents to use
the Deliverables solely for Company's development of the Broadcast Television
Switch. Licensee understands and agrees that IF any patent licenses are
necessary for purposes other than development, including but not limited to the
manufacture of Licensed Products by Company and/or Contract Manufacturers in the
factories of Company and/or Contract Manufacturers, or for the sale of Licensed
Products by Company, such licenses will be governed by a separate patent license
agreement between the Parties, such agreement to contain reasonable and
non-discriminatory terms and conditions, including license fees not to exceed
five (5%) percent of the Fair Market Value of the Licensed Products.

                                       6

MPhase, Inc. DEVELOPMENT AGREEMENT

         (b) Licenses granted herein to Company are not to be construed either
(i) as consent by Lucent to any act which may be performed by Company, except to
the extent impacted by a patent licensed herein to Company, or (ii) to include
licenses to contributory infringe or induce infringement under U.S. law or a
foreign equivalent thereof.

         (c) Company hereby grants to Lucent a personal, non-transferable and
non-exclusive license under patents owned by Company by virtue of Section
2.03(a) solely to perform the Development Project and to furnish Deliverables
pursuant to this Agreement.

2.05 Licenses to Technology

         (a) Upon payment of the applicable fees as set forth in Appendix B and
subject to the provisions of this Agreement, Lucent hereby grants to Company a
personal nontransferable (except as permitted in Section 5.08) and nonexclusive,
worldwide rights to use and/or copy (a) Lucent Information and (b) any part of
any Deliverable that is a general purpose element having one or more uses that
are independent of use in connection with a Licensed Product (i) for the purpose
of conducting the Development Project, (ii) for the manufacture of Licensed
Products by Company and/or Contract Manufacturers in the factories of Company
and/or Contract Manufacturers, and (iii) for the sale of Licensed Products by
Company.

         (b) Subject to the provisions of this Agreement, Company hereby grants
to Lucent a non-exclusive, personal, royalty-free and non-transferable license
under any and all intellectual property rights owned by Company which are
necessary for performing the Development Project or furnishing Deliverables
pursuant to this Agreement.

2.08 No Other Licenses

         (a) No right is granted herein to either Party to use any
identification (such as, but not limited to, trade names, trademarks, service
marks or symbols, and abbreviations, contractions or simulations thereof) owned
by or used to identify the other Party or any of its Subsidiaries or any of its
or their products, services or organizations, and that, with respect to the
subject matter of this Agreement, each Party agrees it will not without the
express written permission of the other Party (i) use any such identification in
advertising, publicity, packaging, labeling or in any other manner to identify
itself or any of its products, services or organizations; or (ii) represent
directly or indirectly that any product, service or organization of the
receiving Party is a product, service or organization of the other Party or any
of its Subsidiaries, or that any product or service of such Party is made in
accordance with or utilizes any information of the other Party or any of its
Subsidiaries.

                                       7

MPhase, Inc. DEVELOPMENT AGREEMENT

         (b) Except as expressly set forth herein, no other right or license is
either granted or implied by either party to the other with respect to any
technical or business information, or with respect to rights in any patents,
trademarks, copyrights, trade secrets, mask work protection rights, and other
intellectual property. Company further understands and agrees that no rights or
licenses under any third party information, software or intellectual property is
being furnished or granted by Lucent hereunder and it shall be Company's sole
responsibility to procure any such rights or licenses (even if such a right or
license is necessary to exercise the rights expressly granted herein).

                                   ARTICLE III
                              TERM AND TERMINATION

3.01 Termination

(a) If a Party fails to fulfill one or more of its material obligations or fails
to perform or observe any material term or condition under this Agreement, the
other Party may, upon its election and in addition to any other remedies that it
may have, at any time terminate this Agreement by not less than thirty (30) days
written notice to the Party specifying any such breach, subject to 3.02 below
unless within the period of such notice, or such longer period as the Parties
may agree, all breaches specified therein shall have been remedied.

(b) Either Party may terminate this Agreement for convenience upon thirty (30)
days written notice to the other Party, subject to 3.02 below. Within such
thirty-day period, the Parties shall meet and agree on a commercially reasonable
wind up of the Development Project, including but not limited to delivery of
completed (or partial) deliverables, and payment to Lucent for non-refundable
costs and expenses incurred.

3.02 Survival

The rights and obligations of Lucent and Company in Sections 2.01 through 2.06,
4.01, 4.02, 4.03, 4.04, 5.09, 5.10 and 5.11), shall survive and continue after
any such termination of this Agreement.

                                       8

MPhase, Inc. DEVELOPMENT AGREEMENT

                                   ARTICLE IV
                            PROTECTION OF INFORMATION

4.07 Lucent and Company Confidential Information

(a) Company and Lucent agree that:

         (i)      Company will not use any of Lucent Information, and that
                  Lucent will not use any of Company Information except as
                  authorized herein;

         (ii)     Company shall hold all of Lucent Information and Lucent shall
                  hold all of Company Information in confidence, and neither
                  Party shall make any disclosure of any or all of such other
                  Party's information to anyone, except to its employees,
                  contractors, consultants and agents who have a need to know,
                  and to any others to whom such disclosure may be expressly
                  authorized hereunder and is necessary to implement the use
                  authorized hereunder, and that each Party shall appropriately
                  notify each person to whom any such disclosure is made that
                  such disclosure is made in confidence and shall be kept in
                  confidence by such person, and each Party shall keep a list
                  of each person to who any such disclosure is made;

         (iii)    the receiving Party will not, without the disclosing Party's
                  express written permission, reverse engineer any of the
                  furnished Lucent Information or Company Information;

         (iv)     the receiving Party will not, without the disclosing Party's
                  express written permission, make or have made, or permit to be
                  made, more copies of any of the furnished Lucent Information
                  or Company Information than are necessary for its use
                  hereunder, and that each such copy shall contain the same
                  proprietary notices or legends that appear on the furnished
                  Lucent Information or Company Information being copied;

         (v)      all of Lucent Information shall remain the property of Lucent,
                  and upon termination of this Agreement, Company shall, at
                  Lucent's written request, immediately cease all use of Lucent
                  Information and shall, as directed by Lucent, promptly destroy
                  or deliver to Lucent each and every part specified by Lucent
                  of Lucent Information then under Company or its Subsidiaries'
                  control;

         (vi)     all of Company Information shall remain the property of
                  Company, and upon termination of this Agreement, Lucent
                  shall, at Company written request, immediately cease all use
                  of Company information and shall, as directed by Company,
                  promptly destroy or deliver to Company each and every part
                  specified by Company of Company Information then under
                  Lucent's or its Subsidiaries' control; and

                                       9

      MPhase, Inc. DEVELOPMENT AGREEMENT

         (vii)    if this Agreement is terminated by a Party for breach prior to
                  completion of the Development Project, then: (i) the
                  terminating Party may retain and use, in accordance with the
                  terms and conditions of this Agreement, Company Information or
                  Lucent Information, as appropriate, for a period of six (6)
                  months from the date of termination, and (ii) the breaching
                  Party shall, at the terminating Party's written request,
                  immediately cease all use Company Information or Lucent
                  Information, as appropriate, and shall, as directed by the
                  terminating Party, promptly destroy or deliver to the
                  terminating Party each and every part specified by the
                  terminating Party of Company Information or Lucent
                  Information, as appropriate, then under the breaching Party's
                  or its Subsidiaries' control.

4.02 Joint Information

(a) Lucent will provide to Company a list of jointly developed Intellectual
Properties utilized in the jointly developed product when product development
design and testing is complete.

(b) All Joint Information, except publicly known information, shall, if in
written or other tangible form, be marked "PROPRIETARY LUCENT-mPHASE" and shall
be maintained confidential by both Parties.

(c) Any Joint Information, except publicly known information, if in intangible
form shall be reduced to a written or other tangible form within thirty (30)
days and marked accordingly.

(d) Subject to a Party's preexisting rights in any solely owned information
contained in the Joint Information, the Parties shall own the Joint Information
jointly.

(e) Each Party may use the Joint Information, royalty-free, for any purpose
subject to any provisions in this Agreement. A Party may disclose or license the
Joint Information, or any portion thereof, to a third party without the
permission of and without accounting to, the other party provided that such
third party agrees to confidentiality provisions for the Joint Information which
are not less restrictive than the provisions herein. Joint Information may be
disclosed for purposes of obtaining patent protection pursuant to the provisions
of Section 2,04(b).

                                       10

MPhase, Inc. DEVELOPMENT AGREEMENT

4.03 Exceptions to Confidentiality

Notwithstanding the provisions of Sections 4.01 or 4.02, neither Party shall be
required to restrict use and/or disclosure with respect to portions of Lucent
Information, Company Information or the Joint Information, if any:

         (i)      that are independently developed by the receiving Party,
                  solely by personnel with no access to such portions furnished
                  under this Agreement to the receiving Party;

         (ii)     that are lawfully received from another source having the
                  right to so furnish such portions without breach of this
                  Agreement;

         (iii)    that have become generally known to the public, provided that
                  such public knowledge was not the result of any breach of this
                  Agreement attributable to the receiving Party;

         (iv)     that at the time of furnishing to the receiving Party was
                  known to the receiving Party as evidenced by documentation or
                  other evidence available to the receiving Party;

         (v)      that the disclosing Party otherwise explicitly agrees in
                  writing need not be kept confidential; or

         (vi)     that is disclosed pursuant to governmental or judicial order
                  or request provided that the Party receiving such request or
                  order shall, whenever practicable, promptly notify the other
                  Party and shall reasonably cooperate with the other Party in
                  contesting such disclosure or in obtaining confidential
                  treatment of any disclosed information (at the other Party's
                  sole cost and expense).

4.04 Export Control

Each Party hereby assures the other that it will not without a license or
license exception authorized by the Bureau of Export Administration of the U.S.
Department of Commerce, Washington, D.C. 20230, United States of America, if
required;

         (i)      export or release any Deliverables (Technical Information or
                  Software, including source code) obtained pursuant to this
                  Agreement to a national of Country Groups D:1 or E:2 (15
                  C.F.R. Part 740, Supp. 1), Iran, Iraq, Serbia, Sudan, or
                  Syria; or

                                       11

MPhase, Inc. DEVELOPMENT AGREEMENT

         (ii)     export to Country Groups D:1 or E;2, or to Iran, Iraq, Serbia,
                  Sudan, or Syria, the direct product (including processes and
                  services) of the Technical Information or Software; or

         (iii)    if the direct product of the Technical Information is a
                  complete plant or any major component of a plant, export to
                  Country Groups D:1 or E:2, or to Iran, Iraq, Serbia, Sudan, or
                  Syria, the direct product of the plant or major component.

This assurance will be honored even after the expiration or termination of this
Agreement.

                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

5.01 Compliance with Rules and Regulations and Indemnification

(a) Company personnel shall, while on any location of Lucent in connection with
the Development Project, comply with Lucent's rules and regulations with regard
to safety and security. Lucent shall inform such personnel of such rules and
regulations. Company shall have full control over such personnel and shall be
entirely responsible for their complying with Lucent's rules and regulations.
Company agrees to indemnify and save Lucent harmless from any claims or demands,
including the costs, expenses and reasonable attorneys' fees incurred on account
thereof, that may be made by (i) anyone for injuries to persons or damage to
property to the extent they arise in connection with this Agreement and result
from the willful misconduct or negligence of Company personnel; or (ii) Company
personnel under Worker's Compensation or similar laws. Company agrees to defend
Lucent, at Lucent's request, against any such claim or demand.

(b) Lucent's personnel shall, while on any location of Company, in connection
with the Development Project, comply with Company rules and regulations with
regard to safety and security. Company shall inform such personnel of such rules
and regulations. Lucent shall have full control over such personnel and shall
be entirely responsible for their complying with Company rules and regulations.
Lucent agrees to indemnify and save Company harmless from any claims or demands,
including the costs, expenses and reasonable attorneys' fees incurred on account
thereof, that may be made by (i) anyone for injuries to persons or damage to
property to the extent they arise in connection with this Agreement and result
from the willful misconduct or negligence of Lucent's personnel; or (ii)
Lucent's personnel under Worker's Compensation or similar laws. Lucent agrees to
defend Company, at Company request, against any such claim or demand.

(c) Each Party shall be solely responsible for (i) its personnel's remuneration,
travel, living and other local expenses, and (ii) payment of all federal, state,
social security and other payroll taxes in respect of its personnel, including
contributions from them when required by the law of the country or any political
subdivisions thereof in which such personnel is employed by such Party.

                                       12

MPhase, Inc. DEVELOPMENT AGREEMENT

(d) Lucent and Company shall, at all times, each retain the administrative
supervision of their respective personnel.

(e) Lucent and Company contemplate the provision of a mutually agreed upon
reasonable amount of technical assistance or training services, some of which
may be provided in countries outside of the United States. Company shall pay all
travel and living expenses incurred by Lucent personnel in connection with such
technical assistance or training services.

5.02 Agreement Prevails

This Agreement shall prevail in the event of any conflicting terms or legends
that may appear on Lucent Information or Company Information or Joint
Information.

5.03 Accuracy

Lucent believes that Lucent Information is true and accurate, and Company
believes that Company Information is true and accurate, but neither Lucent nor
Company nor their respective Subsidiaries shall be held to any liability for
errors or omissions therein.

5.04 Nothing Construed

Neither the execution of this Agreement nor anything in it or in Lucent
Information or in Company Information shall be construed as,

         (i)      an obligation upon either Party or their Subsidiaries to
                  furnish, except as expressly provided in this Agreement, any
                  assistance of any kind whatsoever, or any products or
                  information other than Company or Lucent Information or to
                  revise, supplement or elaborate upon such information; or

         (ii)     providing or implying any arrangement or understanding, except
                  to the extent set forth in this Agreement, that either Party
                  or its Subsidiaries will make any purchase or lease from, or
                  enter into any contract or other business arrangement with,
                  the other Party or its Subsidiaries.

                                       13

MPhase, Inc. DEVELOPMENT AGREEMENT

5.05 Disclaimer

         (a)      All Deliverables, Lucent Information and other information
                  furnished by Lucent under this Agreement is furnished "AS IS"
                  with all faults, latent and patent, and without any warranty
                  of any type. Notwithstanding the foregoing, mPhase and Lucent
                  shall test the Deliverables in order to determine that the
                  Deliverables are in substantial compliance with the Statement
                  of Work set forth in Appendix B.

         (b)      Lucent and its Subsidiaries make no representations or
                  warranties, express or implied. By way of example but not of
                  limitation, Lucent and its Subsidiaries make no
                  representations or warranties of merchantability or fitness
                  for a particular purpose, or that the use of Deliverables,
                  Lucent Information or other information will not infringe any
                  patent or other intellectual property right. Lucent and its
                  Subsidiaries shall not be held to any liability with respect
                  to any claim by Company or any third party on account of, or
                  arising from, the use of Deliverables, Lucent Information or
                  other information furnished hereunder.

(b) Neither Party or its Subsidiaries will under any circumstance, whether as a
result of breach of contract, breach of warranty, delay, negligence, tort or
otherwise, be liable to the other Party or to any third party for any
consequential, incidental, special, punitive or exemplary damages and/or loss of
profits or revenues of the other Party or any third party arising out of this
Agreement, whether or not the applicable Party has been advised of the
possibility of such damages.

5.06 Addresses

         (a) Any notice or other communication hereunder shall be sufficiently
given to mPhase when sent by certified mail addressed to mPhase Technologies
Inc., 587 Connecticut Avenue, Norwalk, CT 06854, or to LUCENT when sent by
certified mail addressed to Lucent Technologies, Inc. Attention: Contract
Administrator Intellectual Property Business 2400 SW 145th Avenue, Monarch Lakes
Office Park, Miramar, FL 33027. Changes in such addresses may be specified by
written notice.

         (b) Payments by the LICENSEE shall be made to LUCENT at Lucent
Technologies, Inc., Account No.375 121 0670, Bank of America, P.O. Box 281547,
Atlanta, Georgia 30384-1547 USA. Alternatively, payments to LUCENT may be made
by bank wire transfers to LUCENT's account at Lucent Technologies Licensing,
Account No.375 121 0670, Bank of America, 1401 Elm Street, Dallas, TX 75202 USA,
ABA Code: 111000012, SWIFT CODE:

                                       14

MPhase, Inc. DEVELOPMENT AGREEMENT

NABKUS4A. Changes in such address or account may be specified by written notice.

5.07 Integration

This Agreement sets forth the entire Agreement and understanding between the
Parties as to the subject matter hereof and merges all prior discussions and
agreements between them. Neither of the Parties shall be bound by any
warranties, understandings, modifications or representations with respect to the
subject matter hereof other than as expressly provided herein or in a writing
signed with or subsequent to the execution hereof by an authorized
representative of the Party to be bound thereby.

5.08 Nonassignability

a) The Parties hereto have entered into this Agreement in contemplation of
personal performance, each by the other, and intend that the licenses and rights
granted hereunder to a Party not be extended to entities other than such Party's
Subsidiaries without the other Party's express written consent.

b) Notwithstanding Section 5.08(a), Lucent's rights, licenses, obligations,
title, and interest in this Agreement may be assigned, in whole or in part, to
(i) any Subsidiary of Lucent; or (ii) any direct or indirect successor to all or
any portion of the business of Lucent or its Subsidiaries, which successor shall
thereafter be deemed substituted for Lucent as the Party hereto, effective upon
such assignment.

c) Notwithstanding Section 5.08(x), Company's rights, licenses, obligations,
title and interest in this Agreement may be assigned, in whole or in part, to
(i) any Subsidiary of Company; or (ii) any direct or indirect successor to all
or any portion of the business of Company or its Subsidiaries, which successor
shall thereafter be deemed substituted for Company as the Party hereto,
effective upon such assignment.

5.09 Choice of Law

The Parties agree that the law of the State of New York, exclusive of its
conflict of laws provisions, shall apply in any dispute or controversy arising
with respect to this Agreement.

                                       15

MPhase, Inc. DEVELOPMENT AGREEMENT

5.10 Agreement Confidentiality

The terms, but not the existence, of this Agreement shall be treated as
confidential information by the Parties, and no Party shall disclose such terms
to any third party without the prior written consent of the other Party;
provided however, that each Party may (i) represent to third parties that such
Party is licensed as provided by this Agreement; (ii) disclose this Agreement
and its terms to potential acquirers of, investors in or lenders to such Party
(including any representatives of the parties in such transaction), or
disclosures reasonably necessary in connection with the divestiture of all or
any portion of a Party's respective businesses, provided such disclosure is made
pursuant to a written confidentiality agreement binding upon such potential
acquirer, investor or tender which contains confidentiality obligations which
are no less protective than at least the same degree of care the disclosing
Party normally exercises to protect its own proprietary information of a similar
nature; (iii) disclose this Agreement and its terms in any arbitration,
mediation or other official dispute resolution procedure pursuant to a written
confidentiality agreement binding upon the parties which contains
confidentiality obligations which are no less protective than at least the same
degree of care the disclosing Party normally exercises to protect its own
proprietary of a similar nature; and (iv) disclose this Agreement and its terms
which is requested pursuant to a judicial or governmental request, requirement
or order under law, provided that such Party provides the other Party with
sufficient prior notice in order to contest such request, requirement or order
or seek protective measures. In addition, this Section shall not prevent a Party
from making disclosures reasonably required by law or as required by a stock
exchange.

5.11 Dispute Resolution

(a) If a dispute arises out of or relates to this Agreement, or the breach,
termination or validity thereof, the Parties agree to submit the dispute to a
sole mediator selected by the Parties or, at any time at the option of a Party,
to mediation by the American Arbitration Association ("AAA"). If not thus
resolved, it shall be referred to a sole arbitrator selected by the Parties
within thirty (30) days of the mediation, or in the absence of such selection,
to AAA arbitration before a sole arbitrator which shall be governed by the
United States Arbitration Act.

(b) Any award made (i) shall be a bare award limited to a holding for or against
a Party and affording such remedy as is deemed equitable, just and within the
scope of the agreement; (ii) shall be without findings as to issues (including
but not limited to patent validity and/or infringement) or a statement of the
reasoning on which the award rests; (iii) may in appropriate circumstances
(other than patent disputes) include injunctive relief; (iv) shall be made
within four (4) months of the appointment of the arbitrator; and (v) may be
entered in any court.

(c) The requirement for mediation and arbitration shall not be deemed a waiver
of any right of termination under this Agreement and the arbitrator is not
empowered to act or make any award other than based solely on the rights and
obligations of the Parties prior to any such termination.

                                       16

MPhase, Inc. DEVELOPMENT AGREEMENT

(d) The arbitrator shall be knowledgeable in the legal and technical aspects of
this Agreement and shall determine issues of arbitrability but may not limit,
expand or otherwise modify the terms of this Agreement.

(e) The place of mediation and arbitration shall be New York City.

(f) Each Party shall bear its own expenses but those related to the compensation
and expenses of the mediator and arbitrator shall be borne equally.

(g) A request by a Party to a court for interim measures shall not be deemed a
waiver of the obligation to mediate and arbitrate.

(h) The arbitrator shall have authority to award compensatory damages only. The
arbitrator shall have no authority to award punitive or other damages , and each
Party irrevocably waives any claim thereto.

(i) Except as required by law, the Parties, their representatives, other
participants and the mediator and arbitrator shall hold the existence, content
and result of mediation and arbitration in confidence.

5.12 Relationship Between Parties

Neither Party to this Agreement shall have the power to accept purchase orders
on behalf of the other, bind the other by any guarantee or representation that
it may give, or to incur any debts or liabilities in the name of or on behalf of
the other Party. The Parties acknowledge and agree that nothing contained in
this Agreement shall be deemed or construed to constitute or create between the
Parties hereto a partnership, association, joint venture or other agency.

5.13 Force Majeure

Neither Lucent nor Company shall be liable for any loss, damage, delay or
failure of performance resulting directly or indirectly from any cause which is
beyond its reasonable control, including but not limited to acts of God,
extraordinary traffic conditions, riots, civil disturbances, wars, states of
belligerency or acts of the public enemy, strikes, work stoppages, or the laws,
regulations, acts or failure to act of any governmental authority. In the event
that performance under this Agreement is prevented for a continuous period of
two (2) months or longer by any of the foregoing causes, either Party shall have
the right to terminate this Agreement by giving written notice to the other
Party.

5.14 Headings

Section and subsection headings contained in this Agreement are inserted for
convenience of reference only, shall not be deemed to be a part of this
Agreement for any purpose, and shall not in any way define or affect the
meaning, construction or scope of any of the provisions hereof.

                                       17

M Phase, Inc. DEVELOPMENT AGREEMENT

5.15 Waiver

Except as specifically provided for herein, the waiver from time to time by a
Party of any of their rights or their failure to exercise any remedy shall not
operate or be construed as a continuing waiver of the same or of any other of
such Party's rights or remedies provided in this Agreement.

5.16 Severability

If any term, covenant or condition of this Agreement or the application thereof
to any Party or circumstances shall, to any extent, be held to be invalid or
unenforceable, then the remainder of this Agreement, or the application of such
term, covenant or condition to parties or circumstances other than those as to
which it is held invalid or unenforceable, shall not be affected thereby and
each term, covenant or condition of this Agreement shall be valid and be
enforced to the fullest extent permitted by law.

5.17 Execution in Counterparts

This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original (including facsimile copies), but all of which
together shall constitute one and the same instrument.

5.18 Payments and Taxes

(a) Company shall pay all invoices rendered by Lucent, in U.S. dollars, within
sixty (60) days after receipt thereof, to the address specified in the invoice.

(b) Company 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 Lucent
in a jurisdiction other than the United States if such tax is allowable as a
credit against the United States income taxes of Lucent; and (ii) any net income
tax imposed upon Lucent by the United States or any governmental entity within
the United States (the fifty (50) states and the District of Columbia). In order
for the exception contained in (i) to apply, Company must furnish Lucent with
evidence issued by the taxing authority in such jurisdiction that such tax has
been paid. The evidence must be furnished within thirty (30) days of issuance by
the taxing authority and must be sufficient to satisfy United States taxing
authorities that such tax has been paid.

                                       18

MPhase, Inc. DEVELOPMENT AGREEMENT

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

                                       19

MPhase, Inc. DEVELOPMENT AGREEMENT

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
in duplicate originals by their duly authorized representatives on the
respective dates entered below.

LUCENT TECHNOLOGIES INC,                          mPhase Technologies, Inc.

By:  /s/ Bernard Zucker
    ------------------------------
                                                  By: /s/ Ronald A. Durando
          BERNARD ZUCKER                              --------------------------
     MANAGING CORPORATE COUNSEL
      INTELLECTUAL PROPERTY                       Name:  Ronald A. Durando
                                                      --------------------------

Date:      10/20/2003                             Title:     President
      ------------------------                          ------------------------

                                                  Date:      10/02/2003
                                                        ------------------------

          THIS AGREEMENT DOES NOT BIND OR OBLIGATE EITHER PARTY IN ANY
    MANNER UNLESS DULY EXECUTED BY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES

                                       20

MPhase, Inc. DEVELOPMENT AGREEMENT

                                   APPENDIX A
                                  DEFINITIONS

BTS means informative material, software, technical information or other
information and Deliverables defined in Appendix B.

Code means Object Code and Source Code, collectively.

Company Information means informative material, software, technical information
or other information, owned by Company or any of its Subsidiaries, disclosed
hereunder by Company that is marked as "confidential" or "proprietary" at the
time of disclosure to Lucent or, if disclosed orally, is identified at the time
of disclosure as "confidential" or "proprietary" and followed by a summary in
writing provided by Company to Lucent within sixty (60) days of the original
disclosure.

Contract Manufacturer means a third party engaged by Company to manufacture
Licensed Products intended for sale by Company to distributors and/or end users.

Deliverables means the Deliverables identified in Appendix B.

Derivative Work shall mean (i) any work of authorship that is based, in whole or
in part, upon one or more pre-existing works (e.g., the Lucent Information or
the Deliverables), such as a revision, modification, translation, abridgment,
condensation, expansion or any other form in which such pre-existing works may
be recast, transformed or adopted and (ii) which, if prepared without
authorization of the owner of the copyright in such pre-existing work, would
constitute a copyright infringement.

Developed Information has the meaning set forth in Section 2.02.

Development Period means, unless otherwise mutually agreed in writing, the
period commencing on the Effective Date of this Agreement and extending until
completion of the last milestone of the Development Project unless terminated
according to the provisions of Article III.

Development Project means performance of the work set forth in the Statement of
Work in Appendix B, and the provision to Company of the Deliverables identified
in Appendix B.

Documentation means all information, whether in human and/or machine-readable
form, relating to Code, including but not limited to user manuals and materials
useful for design (for example, logic manuals, flow charts, and principles of
operation).

                                       21

MPhase, Inc. DEVELOPMENT AGREEMENT

Fair Market Value means, with respect to any Licensed Product sold, leased or
put into use, the greater of (i) the selling price which a seller would realize
from an unaffiliated buyer in an arm's length sale of an identical product in
the same quantity and at the same time and place as such sale, lease or putting
into use; or (ii) the selling price actually obtained for such Licensed Product
in the form in which it is sold, whether or not assembled (and without excluding
therefrom any components or subassemblies thereof which are included in such
selling price).

Joint Information means any newly developed manufacturing process information,
product, service, software, technical information or other information that is
developed while doing work specific to the Development Project by a contribution
of one or more of one Party's employees, agents or consultants jointly with one
or more of the other Party's employees, agents or consultants during the
Development Period. The term does not mean and does not include any existing
intellectual property, product or underlying information of a Party developed
prior to the Effective Date of this Agreement or during the term of this
Agreement solely by or on behalf of Lucent or Company.

Joint Invention shall have the meaning assigned in Section 2.04(b)(i) hereto.

Licensed Product means a Broadcast Television Switch (BTS).

Lucent Information means informative material, Software, Technical Information
or other information, owned by Lucent or any of its Subsidiaries, disclosed
hereunder by Lucent that is marked as "confidential" or "proprietary" at the
time of disclosure to Company or, if disclosed orally, is identified at the time
of disclosure as "confidential" or "proprietary" and followed by a summary in
writing provided by Lucent to Company within sixty (60) days of the original
disclosure.

Lucent Intellectual Property shall mean, collectively, any copyright or trade
secret (but not Lucent Patents) in which Lucent, as of the Effective Date, owns
and has the right to grant any licenses of the type herein granted by Lucent,
but only to the extent of such right, and (I) which is specific to the
Deliverables as furnished hereunder and (ii) but for the licenses granted herein
is unavoidably and necessarily infringed by Customer's implementation and use of
the Deliverables.

Lucent Patent means any patent every patent (including utility models but
excluding design patents and design registrations) issued as of the Effective
Date in any country of the world, and any patent which issues from an
application which claims priority from such issued patent, which Lucent or one
of its wholly-owned Subsidiaries, as of the Effective Date, has the right to
grant any licenses of the type herein granted by Lucent, but only to the extent
of such right, and (i) which claims an invention disclosed in the Deliverables
as furnished hereunder; and (ii) but for the licenses granted herein is
unavoidably and necessarily infringed by Company's use of the Deliverables in
the form furnished hereunder.

                                       22

MPhase, Inc. DEVELOPMENT AGREEMENT

Object Code means code in machine-readable form generated by compilation,
assembly or other translation of Source Code and contained in a medium which
permits it to be loaded into and operated on by a processor.

Software means Code and associated Documentation that is identified in Appendix
B and intended by the Parties to be included in the Deliverables.

Source Code means code in any programming language contained in any format,
including human and machine-readable formats, such code including all comments
and procedural code plus all related development documents such as, but not
limited to, flow charts, schematics, statements of principles of operations or
any other specifications.

Subsidiary of a company means a corporation or other legal entity (i) the
majority of whose shares or other securities entitled to vote for election of
directors (or other managing authority) is now or hereafter controlled by such
company either directly or indirectly; or (ii) that does not have outstanding
shares or securities but the majority of whose ownership interest representing
the right to manage such corporation or other legal entity is now or hereafter
owned and controlled by such company either directly or indirectly; but any such
corporation or other legal entity shall be deemed to be a Subsidiary of such
company only as long as such control or ownership and control exists.

Technical Information means all documented informative material (excluding
patents and patent applications and excluding Code), including without
limitation, Documentation, technical memoranda, technical reports, data and
drawings of whatever kind in whatever tangible medium, specifications, tangible
know-how, processes, manuals, instructions, directories, schematics, sketches,
photographs, graphs, dies, molds, tools, tooling, samples, price lists, part
lists and descriptions, and any and all notes, analysis, compilations, studies,
summaries, and other material containing or based, in whole or in part, on any
information included in the foregoing, that is identified in Appendix B and
intended by the Parties to be included in the Deliverables.

                                       23

MPhase, Inc. DEVELOPMENT AGREEMENT

                                   APPENDIX B
                        Broadcast Television Switch (BTS)

                                STATEMENT OF WORK

This Statement of Work will be governed by and construed in accordance with the
terms of the Agreement, but to the extent there is any inconsistency between the
terms of this Statement of Work and those of the Agreement, the terms of the
Statement of Work shall take precedence and control the work tasks identified
herein.
================================================================================

General Description of the Development Project

This Development Project relates to provision of hardware and software
engineering in connection with the design, development and building of a
Broadcast Television Switch (BTS).

Attached are the statements of work, initial milestones and deliverables for
each of the contracted areas.

***         [THE REMAINING PORTION OF APPENDIX B TO THE DEVELOPMENT
       AGREEMENT AS CONFIDENTIAL HAS BEEN OMITTED PURSUANT TO RULE 406 OF
      THE SECURITIES ACT OF 1933, AS AMENDED. SUCH OMITTED SECTION HAS BEEN
         SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION]

                                       24<PAGE>
                                                                 EXHIBIT 10.12b

                        EXCLUSIVE DISTRIBUTION AGREEMENT

         This Exclusive Distribution Agreement ("Agreement") is effective the
15th day of May, 2002 ("Effective Date"), by and between Corning Cable Systems
LLC ("Corning Cable Systems"), a North Carolina limited liability company with
offices at 800 17th Street, NW, Hickory, North Carolina, 28603-0489 and mPhase
Technologies Inc. ("mPhase"), a New Jersey corporation with offices at 587
Connecticut Avenue, Norwalk, Connecticut 06854 and provides as follows:

                                    Recitals

         WHEREAS, Corning Cable Systems is a manufacturer, developer and vendor
of certain products used in the telecommunications industry; and

         WHEREAS, mPhase manufactures and sells goods identified as Intelligent
POTS Splitters ("iPOTS(tm)"); and

         WHEREAS, the parties wish to enter into an agreement whereby CORNING
Cable Systems will be granted the exclusive right to distribute iPOTS(tm)
purchased from mPhase to telecommunications customers located throughout the
world.

         Now therefore, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in further consideration of
the mutual covenants set forth herein, the parties agree as follows:

                                   Agreement

1.       Grant of Exclusive Distribution Rights.

         1.1      Grant. mPhase hereby grants to Corning Cable System the
                  exclusive worldwide right to market, distribute, export, and
                  sell the mPhase products (the "Contractual Products") set
                  forth in Exhibit A to any and all customers, except those as
                  set forth in Exhibit B attached hereto.

         1.2      Additions to Contractual Products. New products may be added
                  to Exhibit A from time to time upon the mutual agreement of
                  the parties; and after an amended Exhibit A is executed by
                  duly authorized representatives of both parties, those
                  products will become Contractual Products. Notwithstanding
                  the foregoing, improved versions of the Contractual Products
                  shall automatically and without further action be deemed to be
                  Contractual Products within the scope of this Agreement.

         1.3      Exclusivity. mPhase covenants not to sell, promote or
                  distribute any products that are directly or indirectly
                  competitive with the Contractual Products without the prior
                  written consent of Corning Cable Systems. Corning Cable
                  Systems agrees not to sell, promote or distribute any products
                  that are directly or indirectly competitive with the
                  Contractual Products.

<PAGE>

2.       Obligations of the Parties.

         2.1      In addition to any other obligations or undertakings set forth
                  herein, Corning Cable Systems agrees to:

                  (a)      exert reasonable commercial efforts to promote the
                           sale of Contractual Products to all customers except
                           those as set forth in Exhibit B;

                  (b)      employ sufficient competent and qualified personnel
                           to carry out its obligations hereunder;

                  (c)      purchase and maintain sufficient inventories of the
                           Contractual Products (including maintenance parts and
                           components) and any associated demonstration
                           equipment to reasonably support customer demand and
                           sales potential of the Contractual Products;

                  (d)      make all payments due to mPhase hereunder in a timely
                           manner; and

                  (e)      promptly investigate and report to mPhase any
                           complaints, problems or claims related to the
                           Contractual Products.

         2.2      In addition to any other obligations or undertakings set forth
                  herein, mPhase agrees to:

                  (a)      supply the Contractual Products to Corning Cable
                           Systems in such quantities as Corning Cable Systems
                           may request according to the deadlines provided by
                           Corning Cable Systems;

                  (b)      provide and maintain technical, engineering and
                           customer support services to fully support Corning
                           Cable Systems' distribution and sale of the
                           Contractual Products;

                  (c)      provide, free of charge, at a mutually convenient
                           location in the U.S., product training of Corning
                           Cable Systems' personnel; provided, however, that
                           each party shall be responsible for all expenses
                           incurred by its own personnel who may participate in
                           the training; and

                  (d)      furnish to Corning Cable Systems, free of charge,
                           samples of the Contractual Products, product lists
                           and other sales supporting information, such as test
                           data, installation instructions, and advertising
                           material such as descriptive literature, advertising
                           master copies and photos. mPhase agrees and
                           acknowledges that Corning Cable Systems may use
                           iPOTS(tm) trademark, and trademarks related thereto,
                           in the performance of Corning Cable Systems'
                           obligations hereunder.

                                       2

<PAGE>

3.    Order Procedures; Prices; Terms of Sale.
      ----------------------------------------

3.1      Order Procedures; Terms of Sale. This Agreement does not obligate
         Corning Cable Systems to purchase any volume of Contractual Products.
         If Corning Cable Systems desires to purchase Contractual Products, it
         shall submit a purchase order specifying the quantities of Contractual
         Products required and a requested delivery date. mPhase shall
         acknowledge the same within five (5) business days of receipt and shall
         note any exceptions regarding delivery dates and quantities ordered.
         All purchases of Contractual Products shall be upon the terms and
         conditions of sale set forth in the attached Exhibit C. Conflicting or
         additional terms provided in any purchase order, order acknowledgement
         or other document exchanged between the parties shall be of no effect
         unless specifically accepted in writing by a duly authorized
         representative of both parties.

3.2.1    Pricing. Corning Cable Systems shall be solely responsible for
         establishing the resale pricing of Contractual Products to its
         customers. The prices for Contractual Products to Corning Cable Systems
         are is set forth in Exhibit A. mPhase may change the prices of
         Contractual Products upon written notice, however, such price increases
         shall not be effective until the expiration of the ninety (90) day
         period following the date of the written notice describing such price
         increase.

3.3      Forecasts. Corning Cable Systems shall provide within sixty (60) days
         of execution of this Agreement, a six (6) month non-binding forecast by
         month for each Contractual Product. Such forecast shall be updated at
         the beginning of each calendar quarter thereafter. mPhase understands
         and agrees that the forecast shall not create any liability or
         obligation on the part of Corning Cable Systems, including any
         obligation to purchase Contractual Products.

4.       Channel Conflicts.
         ------------------

4.1      In order to induce the other to devote the resources necessary to
         vigorously promote, sell and support the Contractual Products, the
         parties agree to use commercially reasonable efforts to minimize
         channel conflicts. If mPhase receives a sale inquiry for Contractual
         Products from any customer not identified on Exhibit B, it shall
         promptly refer such customer to Corning Cable Systems and shall further
         notify Corning Cable Systems of the sale opportunity. If Corning Cable
         System receives a sales inquiry for Contractual Products from a
         customer identified on Exhibit B, or a prospective customer that
         Corning Cable Systems chooses not to service, it shall promptly refer
         such customer to mPhase.

4.2      It is anticipated that during the term of this Exclusive Distribution
         Agreement the parties will identify new potential customers who are not
         previously set forth in Exhibit B. Every six (6) months during the
         terms hereof, the parties shall jointly update Exhibit B.

                                       3

<PAGE>
5.       Term; Termination.
         ------------------

5.1      The term of this Agreement shall commence on the Effective Date and
         shall continue for a period of five (5) years.

5.2      This Agreement may be terminated, without cause by either party, by
         giving one hundred eighty (180) days written notice of to the other
         party by first class or registered mail. mPhase shall fulfil all orders
         for Contractual Products received up to, and including, the effective
         date of termination.

6.       Miscellaneous.
         --------------

6.1      Force Majeure. Neither party shall be held responsible for any delay or
         failure in performance to the extent such failure or delay is caused by
         fire, strikes, explosions, earthquakes, floods, acts of war or
         terrorism, acts of God or other causes beyond its reasonable control.

6.2      Entire Agreement. This Exclusive Distribution Agreement contains the
         full understanding between the parties relating to the subject matter
         hereof, and no further modifications or amendments hereto shall be
         effective unless reduced to writing and executed by authorized
         representatives of Corning Cable Systems and mPhase referencing an
         intent to amend.

6.3      Assignment. This Exclusive Distribution Agreement is non-assignable and
         non-transferrable by either party without the prior written consent of
         the other party, which consent shall not be unreasonably withheld.
         However, either party may assign its interest in the Agreement to an
         affiliate, by written notice to the other party.

6.4      Dispute Resolution. Any controversy or claim arising from or relating
         to this Agreement or the breach thereof, not otherwise settled by
         mutual agreement between the parties, shall be settled by arbitration
         in Hickory, North Carolina, administrated by the American Arbitration
         Association in accordance with its Commercial Arbitration Rules then in
         force. The arbitrator shall have the power to issue restraining orders,
         both temporary and permanent, upon the showing of appropriate facts by
         a party requesting such relief. Judgment on the award may be entered in
         any court having jurisdictions thereof. This Agreement shall be
         construed in accordance with and governed by the laws of the State of
         North Carolina without regard to conflicts of laws principles of any
         jurisdiction. In the event that either party violates this Section 6.4
         by filing a legal action in a state or federal court, the other party
         shall be entitled to recover its costs and attorney's fees incurred in
         transferring the dispute to arbitration.

6.5      Publicity. The parties agree that all information concerning this
         Agreement and contained in any written or oral announcements, press
         releases, or other public release of information, must be pre-approved
         by both parties.

                                       4

<PAGE>

6.6      Compliance with Laws. Each party warrants that in its performance
         hereof, it will comply with all applicable Federal, state and laws and
         published local laws, rules and regulations (collectively, "Laws").
         Each party shall indemnify and hold harmless the other for any
         expenses, damages, claims or losses it may incur as a result of the
         other party's failure to comply with any applicable Law.

6.7      Counterparts. This Agreement may be executed by facsimile and
         simultaneously in one or more counterparts, each of which shall be
         deemed an original, but all of which shall constitute but one and the
         same instrument.

         IN WITNESS WHEREOF, the parties have caused this Exclusive Distribution
Agreement to be executed by their duly authorized representatives as of the day
and year set forth below.

CORNING CABLE SYSTEMS LLC                mPHASE TECHNOLOGIES INC.

By: /s/ John Rockett                      By: /s/ Gustave T. Dotoli
    --------------------------------      -------------------------------------

Printed                                   Printed
Name: John Rockett                        Name: Gustave T. Dotoli
      ------------------------------            -------------------------------

Title: Sr. Vice President                 Title: Sr. Vice President
       Sales & Marketing                         Chief Operating Officer
       -----------------------------             ------------------------------

Date:   6-25-02                           Date:   6-27-02
      ------------------------------            -------------------------------

                                       5

<PAGE>

                                                                       Exhibit A

                          Contractual Products: Prices
<TABLE>
<CAPTION>

mPhase Part Number                            Description                                  Price
---------------------------------------------------------------------------------------------------
<S>                        <C>                                                             <C>
iPOTSEDB1001               8-Port CO Electronic Daughter Board Card Assembly                TBD
---------------------------------------------------------------------------------------------------
iPOTSEPS1001               CO Power Supply Card Assembly                                    TBD
---------------------------------------------------------------------------------------------------
iPOTSMB19F1001             120-Port 19" CO iPOTS Electronic By-Pass, splitter               TBD
                           shelf, DSL control, 6RU, Female
---------------------------------------------------------------------------------------------------
UBPMB19F1001               120-Port 19" CO Electronic By-Pass Shelf, DSL                    TBD
                           Control, Universal, 3RU, Female
---------------------------------------------------------------------------------------------------
UBPMB23F1192               192-Port 23" CO Electronic By-Pass Shelf, DSL Control,           TBD
                           Universal, 3RU, Female
---------------------------------------------------------------------------------------------------
iPOTSMB23F1001             144-Port 19" CO iPOTS Electronic By-Pass, Splitter               TBD
                           Shelf, DSL Control, 6RU, Female
---------------------------------------------------------------------------------------------------
UBPMB23F1101               144-Port 23" CO Electronic By-Pass Shelf, DSL                    TBD
                           Control, 3RU, Female
---------------------------------------------------------------------------------------------------
iPOTSMB23F1201             144-Port 23" CO iPOTS Electronic By-Pass, Splitter               TBD
                           Shelf, DSL Control, 6RU, Female
---------------------------------------------------------------------------------------------------
POTSDBF8P1001              8-Port CO POTS Splitter Card, Female                             TBD
                           (ANSI/ITU Annex E)
---------------------------------------------------------------------------------------------------
POTSDBF8P2001              8-Port CO POTS European Harmonizer Splitter Card,                TBD
                           Female
---------------------------------------------------------------------------------------------------
POTSDBF8P3001              8-POTS CO ADSL/ISDN 2B 1Q, Splitter Card, Female                 TBD
---------------------------------------------------------------------------------------------------
POTSDBF8P3002              8-Port CO ADSL/ISDN 4B3T, Splitter Card, Female                  TBD
---------------------------------------------------------------------------------------------------
</TABLE>

                                       6

<PAGE>

                                                                       Exhibit B

                                mPhase Customers

1. Lucent --- Saudi Arabia

                                       7

<PAGE>

                                                                       Exhibit C

                          Terms and Conditions of Sale

ORDERING PROCEDURES

Purchase Orders. Corning Cable Systems shall purchase the Contractual Products
by providing written purchase orders to mPhase under the terms of the Exclusive
Distribution Agreement. These written purchase orders may be submitted by
facsimile or, if applicable, by EDI or electronic mail transmission. Each order
placed by Corning Cable Systems for Contractual Products shall be governed by
the terms and conditions of the Exclusive Distribution Agreement; conflicting or
additional terms provided in any order, order acknowledgment, or other document
exchanged between the parties shall be of no effect unless specifically accepted
in writing by a duly authorized representative of both parties.

Order Confirmation. mPhase shall provide Corning Cable Systems with a written
confirmation of any Corning Cable Systems purchase order within five (5)
business days of receipt of such order from Corning Cable Systems. mPhase shall
note any exceptions regarding delivery dates and quantities ordered. In no event
shall any purchase order be binding on Corning Cable Systems until Corning Cable
Systems's order and mPhase's order acknowledgement are in agreement on the
quantities ordered and delivery dates for Contractual Products.

Order Lead Time. mPhase will use commercially reasonable efforts to provide a
thirty (30) calendar day order lead-time for Contractual Products.

Cancellation or postponement of orders. Corning Cable Systems may cancel or
reduce the quantity of any purchase order without liability on or before thirty
(30) days in advance of the ship date specified in Corning Cable Systems's
purchase order without cancellation charge. Corning Cable Systems may cancel or
reduce the quantity of any order by written notice to mPhase at any time, and in
such event Corning Cable Systems shall pay to mPhase its direct costs reasonably
incurred prior to receipt of the notice. Corning Cable Systems may postpone the
delivery of any portion of an purchase order one time for up to sixty (60) days
without any liability by delivering written notice to mPhase on or before thirty
(30) days in advance of the ship date specified in Corning Cable Systems's
purchase order.

PRICES AND TERMS OF PAYMENT

The initial purchase price for the Contractual Products as set out in Exhibit A
to the Exclusive Distribution Agreement shall be in effect until ninety (90)
days after written notice of any price change agreed to by the parties agree.

Sales, Taxes and Duties. Corning Cable Systems shall reimburse mPhase all taxes
and charges paid by mPhase that are imposed by any federal, state or local
governmental or taxing authority, relating to the purchase, ownership,
possession, use operation or relocation of the Contractual Products purchased,
excluding, however, all franchise taxes or taxes based upon the income of
mPhase. Taxes and charges for which Corning Cable Systems is responsible shall
appear as a separate line item on mPhase's invoice.

                                       8
<PAGE>

Invoicing. mPhase may only issue an invoice after the particular Contractual
Products have been shipped by mPhase. All invoices shall reference the
associated purchase order number.

Payment Procedures. Payment will be net thirty (30) days from the date of the
mPhase invoice, unless the invoice is disputed by Corning Cable Systems. mPhase
shall not issue an invoice until the Contractual Products have been shipped. If
any invoice is disputed by Corning Cable Systems, Corning Cable Systems shall
pay mPhase for any portion of the invoice that is not in dispute, and the
parties agree to use their best efforts to resolve any outstanding issues in a
timely fashion.

TERMS OF DELIVERY

Packaging. mPhase shall at its sole expense package, label and handle all
Contractual Products so as to protect them from loss or damage during shipment.

Delivery Terms. Corning Cable Systems shall specify the delivery destination in
its purchase order. Contractual Products shall be sold to Corning Cable Systems
F.O.B. origin and shall not be shipped under reservation. mPhase shall put the
Contractual Products in the possession of a carrier specified or approved by
Corning Cable Systems, contract with the carrier for shipment of the Contractual
Products to Corning Cable Systems, and obtain and promptly deliver to Corning
Cable Systems any documents necessary to obtain possession of the Contractual
Products. Corning Cable Systems shall reimburse mPhase for the expense of
transporting the Contractual Products to the place of destination specified by
Corning Cable Systems, including any shipping, storage, loading, unloading,
freight, insurance any other expenses of transportation; provided, however, that
mPhase shall prepay all such expenses and reflect the same as a separate line
item on the applicable invoice.

Title and Risk of Loss. Title without encumbrance, and without risk of loss or
damage to Contractual Products shall pass to Corning Cable Systems upon delivery
to the carrier designated by Corning Cable Systems. Corning Cable Systems shall
provide mPhase with the details of its shipping arrangements such that mPhase
may prepare each shipment and make timely delivery to the carrier.

Delays in Shipment. mPhase understands and acknowledges that proper delivery at
the agreed upon times are important to Corning Cable Systems. Unless otherwise
agreed upon, the Contractual Products shall be delivered on the date(s) set out
in the purchase order and confirmed by mPhase. If mPhase does not meet the
delivery dates agreed upon in the applicable purchase order, mPhase shall pay
Corning Cable Systems as liquidated damages and not as penalty, 1% of total
amount, of the applicable product not yet delivered, for each week that the
shipment is delayed, up to 5% of the total amount of the applicable product not
yet delivered."

                                       9

<PAGE>

Shipping Documentation. mPhase shall ensure that each shipment of Contractual
Products is accompanied by a packing slip that indicates, at a minimum,
mPhase's part numbers, Corning Cable Systems's part numbers and the applicable
purchase order number.

INSPECTION AND REJECTION OF CONTRACTUA1 PRODUCTS

Inspection. Corning Cable Systems shall have a period of ten (10) business days
following receipt of the Contractual Products to inspect the Contractual
Products. Corning Cable Systems reserves the right to perform this inspection of
mPhase's location, during mPhase's normal business hours, upon reasonable notice
to mPhase and subject to mPhase's reasonable confidentiality, security and/or
safety restrictions. Neither Corning Cable Systems's inspection of the
Contractual Products, or its payment for such Contractual Products shall
constitute final acceptance of the Contractual Products.

Rejections. Corning Cable Systems may reject Contractual Products that are
defective or do not conform to the Specifications. Upon rejection of any
defective Contractual Products, Corning Cable Systems will notify mPhase and
provide a reason for the rejection. Any defective Contractual Products shall be
handled in accordance with the Warranty provisions of this Agreement. Risk of
loss or damage in Contractual Products returned to mPhase shall revert to mPhase
when Corning Cable Systems has tendered the Contractual Products to the carrier
for return to mPhase.

QUALITY

mPhase or its designated subcontractor shall establish and maintain a quality
system, conforming either to the requirements set out in ISO 9000 or an
equivalent quality system standard designated by Corning Cable Systems.

In addition to the above, mPhase agrees to manufacture the Contractual Products
in accordance with the specifications ("Specifications"), attached hereto as
Annex 1 to this Exhibit C. mPhase agrees to submit, on request, samples of the
Contractual Products to Corning Cable Systems so that Corning Cable Systems may
evaluate whether the Contractual Products meet Corning Cable Systems
Specifications.

Upon reasonable notice to mPhase, Corning Cable Systems shall entitled, at no
charge by mPhase, to inspect mPhase' premises during normal business hours
with respect to the verification of processes and quality systems, quality
control of Contractual Products and carrying out sampling and conducting
necessary investigations of quality and delivery performance.

                                       10

<PAGE>

Documentation. mPhase shall provide Corning Cable Systems with all technical
literature relating to the Contractual Products and any upgrades, modifications
and enhancement made to the extent such documentation is regularly made
available to other purchasers of the Contractual Products.

Technical Support. mPhase shall provide Corning Cable Systems with reasonable
technical assistance regarding Contractual Products covered by this Agreement.

SUPPLY OF CONTRACTUAL PRODUCTS AND SPARES

End-of-life Purchases. In the event of termination of this Exclusive
Distribution Agreement, Corning Cable Systems will be entitled, at its
option, to place a final order for a "life cycle purchase" of the Contractual
Products at least ten (10) days prior to the effective date of such
termination, for delivery within one hundred eighty (180) days after the
effective date of termination.

Availability of Contractual Products and Spares. mPhase will make available
to Corning Cable Systems spare, replacement, and maintenance parts necessary
to enable Corning Cable Systems to support the Contractual Products for a
period of at least five (5) years after the date of the last shipment to Corning
Cable Systems. mPhase will make these parts available to Corning Cable Systems
at prices that are at least as low as the prices being charged to mPhase's other
customers with similar terms and conditions.

Insignia. Upon Corning Cable Systems's request, the "Insignia", including
certain Corning Cable Systems trademarks, trade names, insignia, logo, symbols
and/or decorative designs will be properly affixed by mPhase to the Contractual
Products furnished to Corning Cable Systems pursuant to an order. The manner in
which such Insignia will be affixed must be approved in writing by Corning Cable
Systems and shall be in accordance with Insignia guidelines to be provided to
mPhase by Corning Cable Systems. mPhase shall not acquire any right to any good
will, trademark, copyright or other form of intellectual or commercial property
of Corning Cable Systems. Upon termination or expiration of this Agreement,
mPhase agrees to return to Corning Cable Systems, at Corning Cable Systems's
direction, any Corning Cable Systems packaging material, labels or logs within
mPhase's possession, custody or control.

WARRANTY

Product Warranty. mPhase warrants to Corning Cable Systems that at the time of
delivery to Corning Cable Systems the Contractual Products will be new, not
contain any reused parts or components and conform to the Specifications. mPhase
further warrants that, for a period of twelve (12) months from the date
Corning Cable Systems accepts the Contractual Products, the Contractual
Products will be free from defects in design, material and workmanship and will
fully perform in accordance with the Specifications. mPhase also warrants that
services, if any, will be performed in a first class, workmanlike manner. If
any material supplied to Corning Cable Systems contains manufacturer's
warranties, mPhase hereby assigns such warranties to Corning Cable Systems. All
warranties shall survive inspection, acceptance and payment. Contractual
Products not meeting the warranties will be, at Corning Cable Systems' option,
(a) returned for a full refund or credit; (b) repaired; or (c) replaced by
mPhase at no cost to Corning Cable Systems. All Contractual Products repaired
or replaced under warranty shall be warranted in the manner set forth in this
paragraph. mPhase understands that Corning Cable Systems will be reselling
Contractual Products, and accordingly agrees that its warranty hereunder is
fully transferable to Corning Cable Systems' customers.

                                       11
<PAGE>

Free of Liens, Power to Perform. mPhase warrants that the title conveyed
hereunder shall be good and its transfer rightful, and that the Contractual
Products delivered under this Agreement shall be free from all liens,
encumbrances and restrictions. mPhase warrants that it has all rights and
powers necessary to perform its obligations under this Agreement.

Intellectual Property Rights. mPhase warrants that the Contractual Products do
not violate any third party's copyright, patent, trademark, trade secret or
other proprietary right.

Limitations. NEITHER PARTY, THEIR EMPLOYEES, AGENTS, OFFICERS OR DIRECTORS SHALL
BE LIABLE IN ANY WAY WHATSOEVER, FOR ANY INDIRECT, SPECIAL, PUNITIVE OR
CONSEQUENTIAL DAMAGES,, INCLUDING BUT NOT LIMITED TO, LOST PROFITS OR BUSINESS
REVENUE. LOST BUSINESS, FAILURE TO REALIZE EXPECTED SAVINGS, OR OTHER COMMERICAL
OR ECONOMIC LOSS OF ANY KIND WHATSOEVER, WHETHER OR NOT SUCH DAMAGES ARE
FORESEEABLE OR EITHER PARTY, THEIR EMPLOYESS, AGENTS, OFFICERS OR DIRECTORS HAVE
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION SHALL NOT APPLY
TO MPHASE"S OBLIGATIONS TO PAY LIQUIDATED DAMAGES FOR LATE DELIVERIESL. THE
FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING THE IMPLIED WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.

General Limitation. IN NO EVENT SHALL THE TOTAL CUMULATIVE LIABILITY OF mPHASE
OR CORNING CABLE SYSTEMS (INCLUDING THEIR EMPLOYEES, DIRECTORS, OFFICERS OR
AGENTS) FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT, EXCEED
ACTUAL DIRECT, PROVABLE DAMAGES, NOT TO EXCEED THE TOTAL AMOUNTS PAID BY CORNING
CABLE SYSTEMS TO mPHASE UNDER THIS AGREEMENT. THE FOREGOING PROVISION LIMITING
THE LIABILITY OF CORNING CABLE SYSTEMS AND mPHASE (INCLUDING THEIR EMPLOYEES,
DIRECTORS, OFFICERS OR AGENTS) SHALL APPLY REGARDLESS OF THE FORM OR CAUSE OF
ACTION WHETHER IN CONTRACT OR TORT, OR A BREACH OF A FUNDAMENTAL TERM OR
CONDITION; PROVIDED, HOWEVER, THAT THIS LIMITATION SHALL NOT APPLY TO MPHASE'S
OBLIGATION TO INDEMNIFY CORNING CABLE SYSTEMS FOR THIRD PARTY INTELLECTUAL
PROPERTY CLAIMS AS SET FORTH HEREIN.

                                       12
<PAGE>

INDEMNIFICATION

mPhase will, at its own expense, defend, indemnify, and hold Corning Cable
Systems harmless from and against any and all claims, costs, expenses, damages,
or other liability, including reasonable attorneys' fees (collectively
"Liabilities"), to the extent that any such action is based on a claim by a
third party (i) that any Contractual Product infringes a patent, trademark, or
copyright, or misappropriates any trade secret, or (ii) which is based upon the
use, distribution, operation, or performance of any Contractual Product,
anywhere in the world. mPhase's obligations under the preceding are subject to
the conditions that: (a) Corning Cable Systems promptly notifies mPhase in
writing of any such claim, and (b) mPhase will have sole control of such defense
and all negotiations for any settlement or compromise.

If mPhase receives notice of an alleged infringement or if use or distribution
of any Contractual Product shall be prevented by an injunction based on alleged
infringement, mPhase shall have the right, at its option to (i) obtain the
rights for Corning Cable Systems to continue to use and distribution such
Product, (ii) substitute other suitable Contractual Products maintaining the
same fit, form and function, or (iii) modify such Product so that it is no
longer infringing while maintaining the same fit form and function. In the event
(i), (ii), and (iii) are not commercially feasible, Corning Cable Systems shall
return the infringing Product and mPhase shall refund to Corning Cable Systems
the price paid for such Product.

Annex 1:

Specifications

<PAGE>

                 AMENDEMENT TO EXCLUSIVE DISTRIBUTION AGREEMENT

Pursuant to paragraph 6.2, the parties are hereby amending the Exclusive
Distribution Agreement dated May 15, 2002, and executed on June 27, 2002, (the
"Agreement"). The amendment pertains to the grant of exclusive rights and
specifically affects the Recital and paragraph 1.1 of the Agreement. All other
provisions of the Agreement shall remain in full force and effect.

The Recital is amended as follows:

WHEREAS, the parties wish to enter into an agreement whereby CORNING CABLE
SYSTEMS will be granted a non-exclusive right to distribute iPOTS(TM) purchased
from mPhase to telecommunications customers located throughout the world.

The Agreement is amended as follows:

1. Grant of Non-Exclusive Distribution Rights.

1.1 Grant. mPhase hereby grants to Corning Cable Systems a non-exclusive
worldwide right to market, distribute, export, and sell the mPhase products (the
"Contractual Products") set forth in Exhibit A to any and all customers, except
those as set forth in Exhibit B attached hereto. mPhase agrees not to sell,
promote or distribute any Contractual Products to those customers of Corning
Cable Systems set forth in Exhibit B-1 attached hereto,

CORNING CABLE SYSTEMS, LLC.                     MPHASE TECHNOLOGIES, INC.

By:   /s/ Stuart Hoiness                        By: /s/ Martin Smiley
   ----------------------------------              ---------------------------

Printed                                         Printed
Name:   Stuart Hoiness                          Name   :  Martin Smiley
      -------------------------------              ---------------------------

Title: V.P., Global Product Management         Title: EVP, CFO & GC
   ----------------------------------              ---------------------------

Date:  May 14, 2003                            Date: April 14, 2003
   ----------------------------------              ---------------------------

<PAGE>

                                                                     EXHIBIT B-1

                        Corning Cable Systems Customers

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00060-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00060-of-00352.parquet"}]]