Document:

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                                                                   EXHIBIT 10.17

--------------------------------------------------------------------------------
APPLICATION                        DATE      REV  REVISION RECORD    APPROVED
-----------------------------      --------- ---- ------------------ -----------
                                   12/05/97  1
-------- ---------- ---------      --------- ---- ------------------ -----------
DASH     NEXT ASSY  USED ON        2/05/98   4a
-------- ---------- ---------      --------- ---- ------------------ -----------
         N/A        DCN            3/13/98   5
-------- ---------- ---------      --------- ---- ------------------ -----------
                                   3/18/98   6
-------- ---------- ---------      --------- ---- ------------------ -----------

         Exhibit A

                                STATEMENT OF WORK
                                       FOR
              MANUFACTURE OF A 38-GHZ RADIO INTEGRATED OUTDOOR UNIT
                         FOR SUBSCRIBER AND HUB STATIONS

--------------------------------------------------------------------------------
JOB           APPROVALS    DATE
------------ ----------- ---------           HUGHES NETWORK SYSTEMS
ORIGINATOR:  T. Ho       11/11/97
------------ ----------- --------- ---------------------------------------------
APPROVED:
------------ ----------- --------- ---------------------------------------------
CHECKED:                           Title: Exhibit A
                                          SOW for Manufacture of a 38-Ghz
                                          Radio Integrated Outdoor Unit for
                                          Subscriber and Hub Stations
------------ ----------- --------- ---------------------------------------------

------------ ----------- --------- ----------------------------------- ---------
                SHEET 1 OF 26                52571          NO. HNS-13089
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[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                 Copyright (C) 1997 Hughes Network Systems, Inc.

                        Notice of Proprietary Information

                This document and its contents are proprietary to
                      Hughes Network Systems, Inc. and are
      intended solely for the internal use of Hughes Network Systems, Inc.

                  This publication and its contents may not be
                 reproduced or distributed for any other purpose
         without the written permission of Hughes Network Systems, Inc.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                TABLE OF CONTENTS

CHAPTER 1......................................................................5

INTRODUCTION...................................................................5

1.1  SCOPE.....................................................................5
1.2  GENERAL REQUIREMENTS......................................................5
    1.2.1  SELLER RESPONSIBILITIES.............................................5
    1.2.1  BUYER RESPONSIBILITIES..............................................6
    1.2.3  SPECIFICATIONS......................................................6
1.3  GLOSSARY..................................................................7

CHAPTER 2......................................................................8

DELIVERY REQUIREMENTS..........................................................8

2.1  PROTOTYPE UNITS...........................................................8
2.2  QUALIFICATION UNITS.......................................................8
2.3  PRODUCTION UNITS..........................................................8
2.4  DOCUMENTATION.............................................................8
2.5  ENGINEERING SUPPORT.......................................................9
    2.5.1  DESIGN AND COMPONENT REVIEWS........................................9
    2.5.2  DESIGN VERIFICATION TEST...........................................11
    2.5.3  FIRST ARTICLE TESTING..............................................11
2.6  PRODUCTION SUPPORT.......................................................12
    2.6.1  PRODUCTION TEST FIXTURE REVIEW.....................................12
    2.6.2  PRODUCTION TEST PLAN...............................................12
    2.6.3  MONTHLY FAILURE ANALYSIS...........................................12
    2.6 4  NOTIFICATION OF ENGINEERING CHANGES................................13
    2.6.5  CHANGES IN KEY PROCESSES AND COMPONENTS............................13
    2.6.6  ONGOING RELIABILITY TESTING........................................13
    2.6.7  OUT OF BOX FAILURE RATE............................................13
2.7  PACKAGING AND SHIPPING REQUIREMENTS......................................14
2.8  MARKING OF UNITS.........................................................14
2.9  PROCESS AUDITS...........................................................14
2.10 FCC AND UL CERTIFICATIONS AND LISTINGS...................................14

CHAPTER 3.....................................................................15

PROGRAM MANAGEMENT............................................................15

3.1  MANAGEMENT DESIGNATION...................................................15
3.2  MEETINGS.................................................................15
3.3  MONTHLY REPORTS..........................................................15

CHAPTER 4.....................................................................16

DOCUMENTATION.................................................................16

4.1  DESIGN DOCUMENTATION.....................................................16
4.2  HARDWARE DOCUMENTATION...................................................16
4.3  TEST DATA SHEETS.........................................................17
4.4  SUMMARY OF DOCUMENTATION DELIVERABLES....................................17

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

CHAPTER 5.....................................................................18

ACCEPTANCE OF THE WORK........................................................18

5.1  FIRST ARTICLE TESTING....................................................18
5.2  PRODUCTION TESTING.......................................................18
5.3  ACCEPTANCE OF DOCUMENTATION..............................................19

CHAPTER 6.....................................................................20

MILESTONE SCHEDULE............................................................20

6.1  PHASE I SCHEDULE.........................................................20

CHAPTER 7.....................................................................21

QUALITY ASSURANCE.............................................................21

7.1  CONFORMING EQUIPMENT.....................................................21
7.2  QUALITY SYSTEM MANAGEMENT................................................21
7.3  QUALITY SYSTEM...........................................................21
    7.3.1  INCOMING MATERIAL..................................................21
    7.3.2  MATERIAL CONTROL AND HANDLING......................................22
    7.3.3  FABRICATION, ASSEMBLY, AND PRODUCTION TEST.........................22
    7.3.4  OUTGOING MATERIAL..................................................22
    7.3.5  TOOLING MEASURING AND TEST EQUIPMENT...............................22
    7.3.6  WORK INSTRUCTIONS, DOCUMENTATION, AND CHANGE CONTROL...............22
    7.3.7  CONTROL OF NONCONFORMING MATERIAL..................................23
    7.3.8  CORRECTIVE ACTION..................................................23
    7.3.9  SAMPLE PLANS.......................................................23
    7.3.10 TRAINING...........................................................23
7.4  QA PROGRAM PLAN..........................................................23
    7.4.1  CHANGE CONTROL.....................................................23
    7.4.2  TEST AND INSPECTION................................................24
    7.4.3  WORKMANSHIP........................................................24
    7.4.4  ELECTROSTATIC DISCHARGE (ESD)......................................24
    7.4.5  QUALITY ASSURANCE DATA.............................................24
    7.4.6  RECORD RETENTION...................................................24
    7.4.7  METRICS  ..........................................................25

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 1

                                  INTRODUCTION

1.1      SCOPE

This Statement of Work (SOW) defines the work to be done for Hughes Network
Systems, Inc., (HNS, the Buyer) by Supplier (Supplier, the Seller) in support
of the development, manufacture and test of the 38-GHz Integrated outdoor units
(ODU) for subscriber and hub stations for point-to-multipoint (PMP)
communication system applications. The Unit will be abbreviated as ODU in this
document. This work will be done in three phases. These are:
         Phase I           Engineering Development
         Phase II          Qualification
         Phase III         Production

1.2      GENERAL REQUIREMENTS

1.2.1    SELLER RESPONSIBILITIES

The Seller shall design, manufacture, test and deliver equipment for use as a
ODU. This equipment shall meet all requirements of the 38-GHz ODU specification
HNS Document 1024668. The buyer will neither accept this equipment or render
final payment until all 1024668 specifications are met by the seller and
demonstrated by testing the product. Certain documented changes should be
acceptable for prototype.

The Seller shall provide documentation for all the Work performed under the SOW.
The documentation will include design documentation, test data, engineering
support documentation, and production support documentation as described in
chapter 4.

The Seller shall provide program management, engineering support, and production
services as defined in chapter 3 and elsewhere in this SOW.

The Seller shall commence on the design of the equipment promptly and shall
supply design documentation and support all program and design reviews. The
Seller shall establish and maintain the necessary program management structure
to accomplish this Work and shall report on progress of the Work in a timely
manner so as to maintain the Work on the agreed upon schedule.

The Seller shall be responsible for and shall provide all personnel and test
equipment to perform his in-plant testing including the Design Verification
Testing, Ongoing Reliability, Testing and Production Testing. The Seller will
allow the Buyer to witness any or all of this testing. For the DVT, the Seller
will schedule test activities with the Buyer such that the Buyer may witness
testing.

The Seller shall at the sole option of the Buyer and with the consent of the
Seller, provide the additional equipment and services as indicated herein and as
agreed to from time to time.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

Notwithstanding any consultation and reviews performed by the Buyer, the Seller
shall be solely responsible for meeting all the requirements of this SOW and the
ODU Specification.

The Seller is responsible for providing support personnel and special test
equipment necessary for conducting First Article Testing (FAT) and Manufacturing
Verification Testing (MVT).

1.2.2    BUYER RESPONSIBILITIES

The Buyer is responsible for integrating the Seller's equipment into his own PMP
equipment. He is responsible for complete system testing of the Seller's
equipment with his own system. The Buyer is responsible for providing
specifications defining the ODU and it's interfaces to the PMP indoor unit (IDU)
equipment.

The Buyer shall review all documentation provided by the Seller and will provide
comments on all draft documents in the agreed upon schedule.

The Buyer is responsible for calculating and maintaining Mean Time Between
Failure (MTBF) and Annualized Failure Rate (AFR) data and promptly notifying the
Seller when the units are no longer meeting the specifications. The Buyer is
responsible for calculating and maintaining all out of box failure rates and
promptly notifying the Seller when the equipment no longer meets the
specifications.

1.2.3    SPECIFICATIONS

HNS Document 1024668 defines the Buyer's Technical Specification for the ODU.

1.2.4    OTHER FREQUENCY BANDS

The RF Unit design/architecture will take into consideration supporting the
following frequency bands to minimize future modification and to reduce the time
to market. The intention would be as part of the initial architecting effort, an
implementation strategy would be developed for each of these bands. The actual
implementation would then be paced by the development of sufficient market
volume in the respective bands.

NOMINAL BAND       ACTUAL FREQUENCY BAND (GHZ)           BAND TYPE

23 GHz             21.2 to 23.6                          FCC
                   21.2 to 23.6                          UK
                   22.0 to 23.6                          CEPT

24 GHz             24.25 to 26.5                         FCC & DEMS
                   24.5 to 26.5                          CEPT
                   24.25 to 25.25                        ITU-R F.748-2
                   24.35 to 25.35                        P

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

NOMINAL BAND       ACTUAL FREQUENCY BAND (GHZ)           BAND TYPE

26 GHz             24.5 to 27.2                          FCC
                   24.25 to 29.5                         ITU-R F.748-2
                   25.25 to 27.5                         ITU-R F.748-2
                   25.35 to 28.35                        P

28 GHz             27.0 to 28.5                          FCC
                   27.5 to 29.5                          CEPT
                   27.5 to 28.35                         FCC-LMDS
                   29.1 to 29.25                         FCC-LMDS
                   31.0 to 31.3                          FCC-LMDS
                   27.5 to 29.5                          ITU-R F.748-2

38 GHz             38.6 to 40.0                          FCC
                   36.0 to 40.5                          ITU-R F.749-1
                   37.14 to 37.34 (Tx)                   A
                   38.4 to 38.6 (Rx)                     A

1.3      GLOSSARY

The following Glossary contains definitions for acronyms and abbreviations which
appear in this document.

AFR                        Annualized Failure Rate
DVT                        Design Verification Test
ECN                        Engineering Change Notice
FAT                        First Article Test
HNS                        Hughes Network Systems
ODU                        Outdoor Unit
IDU                        Indoor Unit
MTBF                       Mean Time Between Failures
MVT                        Manufacturing Verification Test
O AND M                    Operations and Maintenance
ORT                        Ongoing Reliability Testing
OBFR                       Out of Box Failure Rate
PMP                        Point-to-Multipoint
SOW                        Statement of Work

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 2

                              DELIVERY REQUIREMENTS

2.1      PROTOTYPE UNITS

The Seller shall deliver [*] prototype units which will meet all the physical
and electrical requirements of the ODU Specification. Certain documented changes
should be acceptable for prototype. These units will have been subjected to DVT.
These units will be used for functional, and environmental testing and must meet
all the requirements of the ODU specification. The seller is required to upgrade
all prototype units delivered to the buyer to specification compliance described
above if possible. The Buyer and Seller will mutually negotiate a price and
schedule to upgrade prototype units to be specification compliant.

2.2      QUALIFICATION UNITS

The Seller shall deliver [*] qualification units. These qualification units
shall be manufactured utilizing processes and materials which are the same as
those to be used in production units. The qualification units will be used for
functional, environmental, performance, safety and agency compliance testing and
must meet all the requirements of the ODU specification and the SOW. These units
will have been subjected to DVT and Production Test prior to delivery.
Qualification is performed by Buyer to establish a reliability baseline rather
than a pass/fail criteria.

2.3      PRODUCTION UNITS

Production units will be delivered according to the delivery schedule to be
specified at the time of order. The production units must meet all requirements
of the ODU Specification and the SOW. Production orders will not commence
delivery prior to successful completion of qualification factory demonstration,
DVT, FAT, and MVT.

2.4      DOCUMENTATION

The Seller shall deliver all the documentation specified in Chapter 4. The
Seller will incorporate comments from the Buyer's review cycle into draft
documentation in order to create final documentation. The Buyer shall have the
right to incorporate any Seller supplied documentation into Buyer's own
documentation. Any such Seller supplied documentation shall be subject to the
article entitled "PROPRIETARY INFORMATION" as set forth in the terms and
conditions.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

2.5      ENGINEERING SUPPORT

The Seller shall provide the following Engineering Support to Buyer during
prototype and qualification phase.

2.5.1    DESIGN AND COMPONENT REVIEWS

o    The Seller will conduct [*] formal design reviews in accordance with the
     Milestone Schedule in Chapter 6. These reviews may take up to 2 days each
     alternating between the Buyer's and Seller's facility or as mutually agreed
     to. The informal discussions will be held as required.

These reviews are defined as:

o    Preliminary

o    Critical

o    Final

The Preliminary Design Review (PDR) is held at the outset of the program and is
used to expose and resolve divergent requirements and interpretations of the
product. The Critical Design Review (CDR) occurs after the prototype performance
data has been obtained and the baseline design of the product has been
established. The primary purpose of this design review is to identify and
resolve any problems associated with the design which could lead to development
and/or manufacturing difficulties. The Final Design Review (FDR) occurs after
the engineering development has been completed and just prior to transfer of the
design to manufacturing. The purpose of this review is to ensure the
completeness of the design and documentation such that the product can be
replicated in the manufacturing environment. The Seller will have present staff
with sufficient engineering and manufacturing experience and may reasonably be
expected to answer all questions. Any questions not resolved at the Design
Reviews will be promptly answered by the Seller. The Design Reviews will be held
according to the schedule given in Chapter 6. All materials to be presented at
the Design Reviews will be delivered to the Buyer for review at least seven
(four days before PDR) calendar days prior to beginning of Design Reviews.
The Seller will conduct a Process and Component Review concurrent with each
Design Review meeting. At the Process and Component Review, the Seller will
present all processes and components used in the design. The Seller will
designate, subject to review and mutual agreement by the Buyer, all key
processes and components whose change will require notification to the Buyer and
the actions in Section 2.6.4. The review will be held according to the schedule
given in Chapter 6.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

2.5.1.1  PRELIMINARY DESIGN REVIEW

The objective of the PDR is to review the design and its implementation. As a
minimum, the following information shall be provided to the Buyer prior to the
PDR.

o    An electrical block diagram describing circuit functions along with a
     description of inputs, outputs, interfaces and signal flow.

o    Table of performance budget by circuit for each major parameter such as
     gain, noise figure, intercept point, attenuation, phase shift, distortion
     level, frequency response, etc.

o    Analysis and circuit performance data which demonstrates the performance
     budget of the above item and delineates design margin.

o    Schematic with design parameters, component values and dimensions.

o    List of adjustments and adjustment method.

o    Assembly drawing indicating component layout.

o    Indented assembly list or "family tree".

o    Assembly Flow Diagram.

o    Preliminary test plan which includes: methods, parameters, quantity,
     screening tests and test equipment used.

o    Complete material breakdown sheet FOR THE MAJOR PARTS delineating each
     part item by part number, manufacturer and quantity.

IN ADDITION TO THE DEVELOPMENT SCHEDULE STATED IN THIS SOW, CONTRACTOR SHALL
SUPPLY A PRODUCTION PLAN AND PRODUCTION RAMP-UP SCHEDULE WHICH INCLUDES CAPITAL
EQUIPMENT ORDER AND DELIVERY MILESTONES, STAFF ACQUISITION PLANS AND MILESTONES
AND MATERIAL PROCUREMENT AND DELIVERY SCHEDULES. THE PLANS AND/OR SCHEDULES
REFERENCED HEREIN SHALL BE DELIVERED TO HNS AS SOON AS POSSIBLE BUT NO LATER
THAN THE PRELIMINARY DESIGN REVIEW.

2.5.1.2 CRITICAL DESIGN REVIEW

The objective of the CDR is to verify the specification compliance of the
prototype unit and review the engineering progress made since completion of the
PDR. As a minimum, the Seller shall provide the following information to the
Buyer:

o    Mechanical fabrication sketches, assembly sketches, artwork and photo-tools
     required for breadboard fabrication.

o    Mechanical compliance matrix for product specification which addresses
     thermal, structural, weight, environmental, and system interface
     considerations.

o    Prototype sketches of circuit layouts and assemblies of all circuits
     prototyped.

o    Electrical compliance matrix with circuit parameter performance data
     compliant with product specification and worst case statistical design
     analysis which includes component tolerance.

o    A complete list of purchased parts and materials specifications.

o    Prototype piece part drawings, prototype assembly drawings, and assembly
     flow diagrams incorporated into prototype routing.

o    Written process procedures listing critical parameters, adjustments and
     methods and in process inspections. Processes themselves are Seller
     proprietary.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

o    Written Quality Plan

o    MTBF prediction, reliability analysis which includes semiconductor junction
     temperatures, Parts stress analysis, Heat Flow, Parts Derating.

o    Implementation plan for production test.

o    Completed and approved informally released drawing package.

o    DVT test plan

o    DVT report

2.5.1.3  FINAL DESIGN REVIEW

The objective of the FDR is to finalize the product design and review the
manufacturing drawing package. As a minimum, the Seller shall provide the
following information to the Buyer:

o    Completed and approved parts list

o    Full assembly drawings

o    Plan for development and schedule for tool drawings for fabrication,
     assembly and test fixtures as specified by manufacturing operations.

o    Inspection procedures based on the drawing package which defines all
     workmanship standards.

o    Production test plan for screening and in process tests, acceptance tests
     and qualification tests.

o    Final data on qualification.

2.5.2    DESIGN VERIFICATION TEST

The DVT will demonstrate that the equipment meets all of the functional and
performance requirements of the technical specifications including environmental
testing as defined in the test plan. DVT typically involves two compliant units.
The Buyer may witness the DVT at the Seller's plant. THEY CAN BE SPLIT INTO TWO
PARTS: PART 1 INCLUDES ELECTRICAL TEMPERATURE AND VIBRATION.

The Seller shall prepare, subject to review and mutual agreement by the Buyer,
the DVT Test Procedures and perform the DVT.

2.5.3    FIRST ARTICLE TESTING

The Buyer will be responsible for conducting FAT. This will consist of
integration testing of the qualification units with the Buyer's system. This
testing will also include external lab testing for compliance with all
requirements including environmental, product safety and regulatory agencies.
The Buyer shall be solely responsible for conducting all First Article Testing.
In order to expeditiously identify problems, and provide the Seller with direct
feedback on problems identified to be in his equipment and ensure that trial
fixes to problems are correctly installed at the Buyer's facility, the Seller
will provide engineering personnel with sufficient technical background in
support of this testing. These personnel will be available, if required, to
report to the Buyer's facility from the period of the first lot of qualification
equipment until the conclusion of testing by the Buyer of the first lot of
production equipment. It is expected that the Seller's personnel providing this
support will work closely with the Seller's in plant staff to facilitate
inclusion of all required changes in the production units. Seller is not
responsible for support or delays if buyer cannot complete testing on a timeline
required to support Seller's insertion schedule.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

2.5.4    MANUFACTURING VERIFICATION TEST

Following the First Article Process is usually the Manufacturing Verification
Test (MVT). This plan is executed at the beginning of the production process.
This is based on the production test plan developed earlier. The MVT plan
outlines the specific areas to be included. Seller performs MVT using the first
production units.

2.6      PRODUCTION SUPPORT

The Seller's personnel will provide the following production support during
qualification and production phases of the Work.

2.6.1    PRODUCTION TEST FIXTURE REVIEW

Deliverables include the Production Test Plan, Test fixture acceptance procedure
(10x10), Test fixture schematics and/or wiring diagrams, specifications to be
tested, method of testing, test limits to be applied.

2.6.2    PRODUCTION TEST PLAN

Prior to the delivery of the first lot of production units, the Seller shall
prepare for the Buyer, a report indicating the test coverage of his equipment.
This report will describe in detail the production test that the Seller will run
which will demonstrate that the production units meet all their requirements and
operate as specified. The Buyer will use this report in planning his total
system testing plan and in analyzing system component failures. This report will
include the Test Plan which will be run in the factory and which will produce
the Test Data Sheets and or electronic submitted with each piece of equipment.
Prior to changing the Test Plan, the Seller must promptly notify the Buyer
indicating the reason for the change in the Plan, from which serial number
for-ward this change will take effect and provide copies of the updated Test
Plan.

2.6.3    MONTHLY FAILURE ANALYSIS

The Seller will log all equipment returned as failed units both under warranty
and out of warranty, on a monthly basis. The Seller will prepare a written
summary, analysis of the failures. The analysis will highlight any "Pattern
Defects" and indicate corrective measures that will be taken in either the
testing process or from a design change.

2.6.4    NOTIFICATION OF ENGINEERING CHANGES

The Seller shall notify the Buyer in writing upon initiation of any significant
Engineering Change Notices (ECNs) which modify the design of the equipment in
any way. The notification shall indicate the nature of the ECN and it's purpose.
The notification shall indicate the shipment lot and serial numbers for which
the ECN becomes effective. As appropriate, all necessary documentation,
including

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Production Test Procedures, will be updated to reflect this ECN. The equipment
will be marked with a visible indicator of the revision level of the Buyer's
specification so that upon inspection, it will be clear as to the revision level
of the equipment. No ECN will be applied to any equipment which will cause it to
be non-compliant with the Technical Specification or the SOW. For each ECN, the
Seller shall provide a recommendation as to whether the Baseline DVT should be
updated and rerun. In the case of any ECN which changes the functional or
performance characteristics of the equipment the Baseline DVT may be rerun at
the Buyer's sole option. The Seller shall update and rerun the Baseline DVT to
demonstrate that the equipment is still compliant with the Technical
Specifications and the SOW. The Buyer shall be provided with any revised
Baseline DVT procedure.

2.6.5    CHANGES IN KEY PROCESSES AND COMPONENTS

With Notification to the buyer, the Seller may substitute comparable, equivalent
during the course of the manufacturing cycle as long as the equipment will
continue to meet all specifications. However, in the case of changes in
processes or components which have been designated as key processes or
components, the Seller shall rerun the Baseline DVT and submit a written report
indicating the equipment continues to pass the Baseline DVT with the new process
or component being used in the manufacture of the equipment.

2.6.6    ONGOING RELIABILITY TESTING

The Seller shall conduct an Ongoing Reliability Testing Program to be mutually
agreed to by the Buyer where he will monthly randomly select deliverable
equipment is ready for shipment to the Buyer, and test with extended burn-in
such equipment. After testing, the Seller may repackage and deliver the
equipment to the Buyer. The Seller shall notify the Buyer of the results of this
testing and of any changes implemented in his procedures as a result of this
sample testing. ORT is typically [*] at elevated temperature.

2.6.7    OUT OF BOX FAILURE RATE

The Buyer shall maintain records as to the number of units which fail to conform
to the specifications as they are unboxed, as a result of Seller shipment to the
Buyer. [*] OBF shall not exceed a cumulative [*] per delivery order, the Buyer
will notify the Seller in writing and provide the results of his calculation.
The Seller agrees to take steps to improve his manufacturing/testing/shipping
procedures upon receipt of such notification, and shall within 20 WORKING DAYS:

o    Analyze the problem

o    Prepare and submit an action plan indicating what steps he will take to
     remedy the problem

o    Promptly initiate corrective action on delivered and future production
     units.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

2.7      PACKAGING AND SHIPPING REQUIREMENTS

All equipment shall be delivered to locations identified in writing by the
Buyer. All packages shall be labeled for identification of contents. The Buyer
and Seller assembly numbers along with purchase order number, serial number and
revision level shall appear on each label. The details of the marking
requirements are shown in the specification. For bulk shipments, total
quantities of assemblies shall be entered as a single line item. Accompanying
the shipping document shall be a tabulation of each item and associated serial
numbers, part numbers, and revision levels. Under separate cover, an additional
copy of the shipping document shall be forwarded to the Program Manager as
notification that the shipment has been made.

2.8      MARKING OF UNITS

All units shall be marked as specified in the HNS specification number 1024668.

2.9      PROCESS AUDITS

The Buyer shall have the right, upon reasonable notice to the Seller and on a
non-interfering basis, to enter the Seller's plant and audit the processes used
to manufacture, test, and ship equipment to the Buyer. The sole purpose of this
Process Audit shall be to ensure high quality of the delivered equipment.

2.10     FCC AND UL CERTIFICATIONS AND LISTINGS

The Buyer, with support from the Seller, is responsible for type acceptance
testing and obtaining the FCC and UL certifications and listings required by the
1024668 SCD.

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                                    CHAPTER 3

                               PROGRAM MANAGEMENT

3.1      MANAGEMENT DESIGNATION

Promptly after signing the Contract, the Buyer and the Seller will both
designate a Program Manager, an Engineering Manager, and a Contract Manager. The
program managers will be the single point of contact for the Contract on all
matters, administration, technical and contractual of the Work. However, no
changes to the contract shall be binding on or undertaken by the Seller or Buyer
unless confirmed in writing by the Contract Managers. The Engineering Managers
will be the only individuals authorized and responsible to represent the Buyer
and the Seller in the definition and interpretation of the technical
requirements of the Contract. The Buyer will take no responsibility for any
action taken by the Seller on the basis of technical direction which causes a
change in price, schedule, Exhibit A, or Exhibit B, unless and until such
direction is approved by the Program Manager and directed by the Contract
Manager, pursuant to the Terms and Conditions.

3.2      MEETINGS

The Seller and the Buyer shall hold a bi-monthly Program Review Meeting every
other month until delivery of [*] to review the progress of the Seller on the
Work. The meetings shall alternate between the Buyer's Germantown MD facility
and the Seller's facility. The agenda shall include a report on all milestones,
technical progress and other such topics as may be mutually agreed upon.
The engineering managers may call Technical Review meetings as they deem
necessary to coordinate the details of the design and resolve any technical
issues that may arise. Such meetings will be held at a mutually agreed upon
site.

3.3      MONTHLY REPORTS

The Seller shall submit a Work status report each month to the completion of the
Qualification. The report shall include status information on the Work and shall
include, but not be limited to last's month's accomplishments, problem areas,
projected activities, failure summaries, action items with suspense dates,
schedule variances and coordination requirements and shall include a schedule
for development of all key components during Phase I. ORT results in Subsection
2.6.5 and QA information as described in Subsection 7.4 will also be included in
this report. Copies of this report shall be delivered to the Buyer's Program
Manager no later than the fifth working day of each month.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 4

                                  DOCUMENTATION

The Seller shall deliver Hardware Documentation as part of this SOW. The
documentation shall conform to good commercial practices. The Seller shall
forward all draft documentation to the Buyer Program Manager to implement a
formal review process. Specific comments, suggestions, and directions will be
provided by the Buyer and will be reviewed by the Seller. In case of disapproval
for non-compliance with this SOW, a subsequent review will be required before
approval is issued. In the case of approval with comments, by mutual agreement
update sheets may be provided in place of resubmitting the entire document. The
Buyer will confirm the completion of the document with comments within 10
working days of receipt of Documents or re-submission of Documents. All
Documentation shall be clearly labeled as DRAFT or FINAL copies. All titles must
either conform to the list of titles given in Section 4.4 unless a cross
reference is provided with the delivery of the Document.
The Seller shall deliver Five copies of all Documents.

4.1      DESIGN DOCUMENTATION

At each Design review, the Seller shall represent documentation that indicates
how the hardware will be designed so as to comply with all requirements.

4.2      HARDWARE DOCUMENTATION

The following hardware documentation will be provided as per milestone schedule
in Chapter 6:

o    Drawing tree for the ODU.

o    Schematics including complete block diagrams and schematics for each
     printed circuit board along with all interconnectivity cables and
     connectors shall be provided. Component values and identification shall be
     legible on all drawings.

o    The contents of all programmable devices will be specified.

o    A complete parts list for all equipment will be provided. The Seller will
     supply a cross reference of Seller part numbers to Vendor part numbers.

o    A complete set of assembly drawings.

o    Theory of Operation.

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4.3      TEST DATA

Test data shall be submitted for each unit may be in electronic form and or
electronically submitted. They shall make cross reference to the Production Test
Plan and will include the serial number of the unit under test, the acceptable
limits defined in the Test Plan, the recording of the results observed, and the
date the test was performed.

4.4      SUMMARY OF DOCUMENTATION DELIVERABLES

The following summarizes the Documentation to be delivered:

o    Monthly Status Reports

o    Design Review Materials

o    Theory of operation

o    Block Diagram

o    Assembly Drawings

o    Schematics

o    Parts Lists

o    DVT Procedures

o    DVT Report

o    Key Components List

o    Key Process List

o    Manufacturing process and Flow Chart.

o    Production Test Coverage Analysis

o    Production Test Plan

o    Production Test Data Sheets

o    Monthly Failure Analysis

o    Appropriate ECNs

o    QA plan

o    Production Test Fixture equipment list

o    Production Test Fixture schematic and/or wiring lists

o    List of special jigs or fixtures used to test the equipment

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                                    CHAPTER 5

                             ACCEPTANCE OF THE WORK

Acceptance of the Work will be segmented into the following phases:

o        Prototype

o        DVT

o        First Article Acceptance Testing

o        Qualification Testing

o        Production Testing

o        Acceptance of Documentation

5.1      FIRST ARTICLE TESTING

Upon receipt of the qualification equipment, the Buyer will commence testing the
units for compliance with the Technical Specifications and this SOW as described
in Section 2.5.4. In the event of noncompliance, the areas of deficiency will be
demonstrated to the Seller personnel at the Buyers facility. The Seller will
remedy all areas of non-compliance prior to delivery of the first lot of
production equipment. Delivery of the production units will be contingent on
approval by the Buyer based on successful completion of FAT. The buyer will
regression test the [*] to ensure continued compliance with the Technical
Specifications and the SOW. The Seller shall have the right to witness all
factory based Acceptance Testing. In the event of non-compliance of the [*] with
the Technical Specifications and SOW, the Seller will be notified of the reasons
and, at the Buyers sole option, the Seller shall hold all shipments until such
time that the Seller reasonably demonstrates to the Buyer that the future
production units will be completely in compliance with the Technical
Specifications and SOW.

5.2      PRODUCTION TESTING

Acceptance of the remainder of the production units will be deemed to have
occurred when all the following are accomplished:

o    The units have been successfully tested in the factory by the Seller
     according to the Production Test Procedure.

o    The units have been delivered to the Buyer's site with their test data.

o    Successful MVT has occurred and the [*] have been successfully regression
     tested.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

5.3      ACCEPTANCE OF DOCUMENTATION

The Buyer will review the draft Documentation submitted by the Seller and will
provide comments. Acceptance of the documentation will occur after final
Documentation has been reviewed and all agreed upon comments have been included.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 6

                               MILESTONE SCHEDULE

The following is the milestone schedule for the Work:

6.1      SCHEDULE
[*]
         TASK                                DATE DUE
         [*]                                 [*]
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38-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 7

                                QUALITY ASSURANCE

7.1      CONFORMING EQUIPMENT

Production equipment shall conform in all aspects to the Technical Specification
1024668 and this SOW and shall successfully complete acceptance testing to the
current Production Test Procedure. In addition, production equipment shall
conform to the Seller's quality standards for products of a like nature.
All work in progress documentation and finished products shall be subject to
examination, evaluation, and source inspection by the Buyer or at test
inspection locations designated by the Seller at any reasonable time and with
prior notice during the time of this agreement. Notwithstanding any such
preliminary inspection, all products are subject to final inspection after
delivery has been made. Unless otherwise specified in the contract or purchase
order, the Seller is responsible for the performance of all inspection
requirements as detailed in the specifications or SOW. The Seller may use his or
her own, or any other, facility, suitable for the performance of these
inspections unless directed otherwise by the buyer.

7.2      QUALITY SYSTEM MANAGEMENT

Administration of the quality system shall be vested in a manager who has
sufficient authority to ensure that quality requirements are met consistently.
The quality, system shall:

o    Be based on the Seller's process flow and provide flow charts

o    Be documented

o    Ensure that quality is controlled in all operations affecting supplied
     products, including manufacturing support activities and all other
     manufacturing activities

o    Monitor quality trends to ensure the prevention, or early detection and
     correction, of conditions leading to discrepancies

o    Provide quality goals for all operations

o    Provide complete records of all in process deviations and of all final
     inspection

o    Define and implement corrective actions

7.3  QUALITY SYSTEM

7.3.1    INCOMING MATERIAL

The Seller shall be responsible for ensuring all production supplies and service
from another supplier conform to these requirements.

o    Clear and complete purchase specifications shall be provided to the
     Seller's suppliers.

o    Purchase shall be made from suppliers qualified by the Seller per Seller's
     drawings.

o    The quality of incoming material and services shall be monitored.

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o    Discrepant material shall be detected early and corrective action taken.

o    Records to confirm these activities and/or corrective actions shall be
     maintained.

7.3.2    MATERIAL CONTROL AND HANDLING

Material shall be handled and stored as to prevent damage or deterioration.

7.3.3    FABRICATION, ASSEMBLY, AND PRODUCTION TEST

o    All critical operations or processes shall be measured utilizing
     statistical techniques.

o    All manufacturing ring personnel and support personnel shall be trained.
     All appropriate manufacturing personnel shall be certified to soldering
     processes and shall be evaluated periodically.

o    Complete work instructions appropriate to the circumstances shall be
     available at each work station.

o    Testing and inspection of work in process shall be done to assure
     compliance with finished product requirements.

o    Operation sheets shall be archived for at least a one-year. These records
     shall indicate test and inspections performed, and any nonconformances
     detected during assembly and test/inspection operations.

7.3.4    OUTGOING MATERIAL

The Seller shall be responsible for ensuring that all material and services
supplied to the Buyer conform to these requirements:

o    Material and services shall be monitored to ensure compliance with
     requirements.

o    Corrective action shall be taken when necessary.

o    Records shall be maintained showing the identity of material evaluated, the
     quantity, tested, the test results, and corrective actions taken. These
     records shall be maintained for at least one year.

o    Provide the Buyer upon request, results of outgoing material evaluations
     and audits.

7.3.5    TOOLING MEASURING AND TEST EQUIPMENT

All tooling, measuring and test equipment used for process control and the
acceptance of the product shall be calibrated on a scheduled basis. Calibration
standards shall be maintained and regularly calibrated with standards that are
traceable to the US National Institute of Standards. In countries other than the
US, a National Standards Laboratory whose standards are compared with the
International or US Standards may be utilized. Records to support the
calibration system shall be maintained by the Seller.

7.3.6    WORK INSTRUCTIONS, DOCUMENTATION, AND CHANGE CONTROL.

Seller shall:

o    Prepare and maintain current work instructions and product documentation
     affecting quality for all functional areas and ensure their use.

o    Implement changes to work instructions and product documentation so that
     the intended changes are accomplished.

o    Comply with all specifications, drawings, and purchase order information
     provided by the buyer.

o    Transmit all pertinent information, specifications, and drawings to the
     Seller's suppliers.

o    The Seller shall submit to the Buyer "Key Process or Component changes".

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7.3.7    CONTROL OF NONCONFORMING MATERIAL

The Seller shall establish and maintain a system for the control of
nonconforming material. As a minimum, the system shall have the following
elements:

o    The means for identifying and segregating nonconforming material from the
     good material. Hold areas shall be established for the storage of the
     nonconforming material prior to disposition.

o    A procedure for disposing of nonconforming material.

o    Corrective action to prevent recurrence.

o    Records for nonconforming material including material identification,
     source of material, discrepancies, disposition, and corrective action.

Records and controls shall support disposition decisions.

7.3.8    CORRECTIVE ACTION

The Seller shall establish and maintain an effective program of corrective
action on discrepancies. Records shall be established and maintained describing
the discrepancy observed, frequency, corrective action, evaluation of corrective
action, date and serial number of the effectiveness of the corrective action.

7.3.9    SAMPLE PLANS

The Seller may use statistical sampling as a method of quality control provided
the resulting products meet all Buyer requirements. Sampling plans and their
applications shall be based upon sound mathematical principles and the sampling
procedures shall be properly documented. Procedures and sampling records shall
be maintained by vendor for the buyer's audits and reviews.

7.3.10   TRAINING

All Seller personnel doing work which affects the quality of supplied products
to the Buyer shall be trained in the correct procedures for doing their jobs.

7.4      QA PROGRAM PLAN

The Seller shall establish and maintain a Quality Assurance (QA) Program Plan
based on good commercial practices. The program shall be described in a QA plan
to be submitted to the Buyer for review and approval prior to the start of
production. The plan shall include but not be limited to the following.

7.4.1    CHANGE CONTROL

Configuration control to assure continuous compliance with form, fit, and
function of the product, and to provide traceability relative to change in
design, material, processes, and prior notification when changing vendors and/or
subcontractors. The Seller shall implement a process for control and approval of
all ECNs. The Buyer shall be notified for all ECNs involving "Key Components or
Processes". As a minimum, the following documents and processes shall be
controlled - parts lists, SCDs, Manufacturing

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process documents, design drawings, assembly drawings, test procedures, shipping
and packaging procedures and QA procedures.

7.4.2    TEST AND INSPECTION

Production Test procedures and inspection methods shall be designed to achieve
an outgoing quality level of [*]. The Buyer reserves the right to witness Final
Inspection and Production Test at the Seller's facility. All testing and
inspections witnessed shall be in accordance with the Buyer approved procedures.

7.4.3    WORKMANSHIP

The Seller's QA program shall provide adequate standards for the quality of
workmanship. These standards shall address the acceptance criteria for all
manufacturing processes used in the manufacture of products for the Buyer. These
standards shall be available for review by the Buyer. Deficiencies and conflicts
identified by Buyer shall be addressed by the Seller to the mutual agreement of
both parties.

7.4.4    ELECTROSTATIC DISCHARGE (ESD)

The Seller's ESD plan shall also provide that personnel are aware and that
facilities provide adequate protection from possible damage to equipment during
manufacture and shipment, and to refrain from the use of static generating
material in packing or packaging. An ESD Audit may be conducted by the Buyer as
part of the initial quality audit. The Seller agrees to implement changes or
improvements in his ESD controls as may be necessary. Any change shall be
mutually agreed upon by the Seller and Buyer.

7.4.5    QUALITY ASSURANCE DATA

The Seller's QA data collection plan shall provide that a system is in place
which documents and collects failure and inspection reject/accept data, repair
actions in house and for products returned for repair, in or out of warranty.
The Seller shall provide to the Buyer this information as part of the Monthly
Failure Analysis.

7.4.6    RECORD RETENTION

Quality Control Records, including those resulting from production testing shall
be maintained by the Seller and made available to the Buyer on request for a
period of One year following completion of this order.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

7.4.7    METRICS

The quality of process and products pursuant to this Agreement shall be measured
with the following metrics:

7.4.7.1  MANUFACTURING TEST/INSPECTION YIELD

Manufacturing yields are calculated with:

         #Units_without_repair
Y =      --------------------------x 100
         Total#Units_tests

Yields are defined:

o    Monthly

o    For each unit tested

o    For each test listed in Seller Test Plan

7.4.7.2 SHIPMENT INTEGRITY

Shipment integrity, insures that all products and documentation required by an
order are in fact shipped. The objective is to have an average of [*] of
shipment in a year. The metric is calculated monthly with:

         Shipment_errors_received_by_Buyer_per_month
S=       -------------------------------------------------x 100
         Number_corresponding_items_received

The threshold which may allow the Buyer to hold shipment is [*].
Seller shall remedy defects in shipment integrity immediately after notification
by Buyer. If the Seller ships the missing Product or Documentation within 2
working days of the Buyer's notification, the shipment will not be deemed
delayed.

7.4.7.3 OUT-OF-BOX FAILURE

OBF is defined as defects in "Out-of-Box" products characterized by the
following criteria:

o    Non-conformance to Technical Specification or SOW.

o    Missing part of a product affecting form, fit, or functionality.

o    Defect in installability (Fails to install in Buyer Equipment)

o    Module power on self test failure

o    Off-line diagnostic failure

o    System failure caused by the unit in a certified hardware configuration.

These defects are detected by visual inspection and mutually agreed tests
performed by the Buyer. The objective is [*]. OBF is calculated monthly with:

         Defective_parts_received_by_Buyer_per_month
OBF=     --------------------------------------------x 100
         Total_number_of_parts_shipped_per_month

The threshold which allows the Buyer to require a hold in shipments is [*]. The
Buyer shall begin to calculate the OBF with the first delivery of production
units.

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38-GHZ ODU SOW                 COMPANY PROPRIETARY

7.4.7.4  ANNUALIZED FAILURE RATE

AFR describes the rate at which failures occur in equipment installed at the
Buyer's Client sites.

         Failures_per_Month
AFR=     --------------------X 1200
         AFR_Installed_Base

Failures are defined as the number of units returned to the Buyer from client
sites due to a failure in the Seller's equipment in any given month.
AFR Installed Base is defined as the Total Number of Buyer's client sites
operating in the same month. In the case of any unusual trend of failures on any
Product, the Buyer and Seller will mutually agree on an action plan to
investigate the causes and solve the problem if appropriate.
The Buyer will put in place a tracking mechanism to monitor the failure rates of
the Product under warranty for its total client base, results of which shall be
provided to the Seller on a monthly basis. The maximum allowable AFR is defined
in the Technical Specification. AFR will be calculated beginning with the first
shipment of production units.

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                                                                   EXHIBIT 10.18

--------------------------------------------------------------------------------
                         TABLE OF CONTENTS
ARTICLE 1 OBJECT OF THE AGREEMENT..............................................1
ARTICLE 2 PRODUCT..............................................................1
ARTICLE 3 PURCHASE COMMITMENT AND SUBSEQUENT PURCHASE ESTIMATES................2
ARTICLE 4 ORDERS...............................................................3
ARTICLE 5 PRICES...............................................................3
ARTICLE 6 TERMS OF PAYMENT.....................................................4
ARTICLE 7 TERMS OF DELIVERY....................................................5
ARTICLE 8 PACKING..............................................................5
ARTICLE 9 DELIVERY TIMES.......................................................5
ARTICLE 10 RESCHEDULING AND CANCELLATION.......................................6
ARTICLE 11 INSPECTIONS.........................................................7
ARTICLE 12 QUALITY REQUIREMENTS................................................8
ARTICLE 13 FACILITY SURVEYS....................................................8
ARTICLE 14 WARRANTY............................................................8
ARTICLE 15 PRODUCT LIABILITY...................................................9
ARTICLE 16 DISCONTINUATION OF PRODUCTION......................................10
ARTICLE 17 ENVIRONMENTAL MANAGEMENT...........................................10
ARTICLE 18 INDUSTRIAL PROPERTY RIGHTS AND PATENT INDEMNIFICATION..............10
ARTICLE 19 CONFIDENTIALITY....................................................11
ARTICLE 20 FORCE MAJEURE......................................................12
ARTICLE 21 EFFECTIVE DATE AND TERM............................................12
ARTICLE 22 PREMATURE TERMINATION..............................................13
ARTICLE 23 APPLICABLE LAW AND SETITLEMENT OF DISPUTES.........................14
ARTICLE 24 FINAL PROVISIONS...................................................14
APPENDIX 1 PARTS/PRODUCTS PURCHASE VOLUMES AND PRICES
APPENDIX 2 SPECIFICATIONS
APPENDIX 3 QUALITY REQUIREMENTS
APPENDIX 4 ROLLING FORCAST

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

<PAGE>

                              PRODUCTION AGREEMENT

     TRW Inc., a corporation incorporated in Ohio (hereinafter referred to as
the "Buyer") of the first part and Endwave Corporation, a Delaware corporation
(hereinafter referred to as the "Seller") of the second part have as parties
(hereinafter referred to as the "Parties") of this agreement made and entered
into this Production Agreement (hereinafter referred to as the "Agreement") as
of the 31st day of March, 2000.

     WITNESSETH THAT

     WHEREAS Buyer and Nokia Telecommunications OY ("Nokia") previously entered
into a Production Agreement, dated as of July 23, 1996 (the "Nokia Agreement")
whereby Buyer agreed to provide to Nokia the transceiver modules referred to
herein.

     WHEREAS Buyer and Buyer's previously wholly owned subsidiary, TRW Milliwave
Inc. ("MW"), entered into purchase orders, whereby MW would perform the work
under the Nokia Agreement for Buyer (the "MW Purchase Orders").

     WHEREAS MW was acquired by Seller on the date hereof pursuant to the terms
of that certain Agreement and Plan of Merger, dated February 28, 2000, by and
among Buyer, Seller and MW.

     WHEREAS Buyer and Seller wish to terminate the MW Purchase Orders and enter
into this Agreement, whereby Seller will perform the work under the Nokia
Agreement for Buyer.

     NOW THEREFORE THE PARTIES HERETO HEREBY AGREE AS FOLLOWS:

                                    ARTICLE I
                             OBJECT OF THE AGREEMENT

     The Seller wishes to sell to the Buyer and the Buyer wishes to purchase
from the Seller, in accordance with the terms and conditions hereof, certain
parts (hereinafter referred to as "Product" or "Products") which are to be
ordered by the Buyer from time to time and which are specified in Appendix 1
hereto and which are manufactured and/or marketed by the Seller in accordance
with the specifications (HEREINAFTER REFERRED TO AS "Specifications") provided
in Appendix 2 hereto.

                                    ARTICLE 2
                                     PRODUCT

2.1  The Products to be supplied hereunder are specified in Appendix 1 hereto.

2.2  The Parties may, upon mutual agreement, amend Appendix 1 to include any new
item to, or to delete any item from the definition of Product.

<PAGE>

2.3  Notwithstanding Clause 2.2 above, the Buyer may, upon notice to the Seller,
delete any item from the definition of Product for the following reasons:

          (1) Standardization of the Buyer's components and/or products;

          (2) The particular item may no longer be used by the Buyer due to
changes in production, production methods and/or products; and

          (3) The particular item does not meet the Specifications and/or causes
serious quality problems in the Buyer's products.

2.4  Appendix 1 hereto includes a list of the Products and Buyer-specific
components thereof which the parties mutually agree shall be kept in buffer
stock by the Seller. The Parties may mutually agree to amend the buffer stock
levels and to add new Products and Buyer-specific components to be kept in
buffer stock by he Seller.

2.5  The Seller agrees to inform the Buyer of any export or re-export
restrictions relating to the Products

2.6. The Seller agrees that it will not make, have made, use or sell under the
patents or using the technical data generated under the Development Agreement,
dated as January 8, 1996, between TRW and Nokia (the "Development Agreement"),
as specifically set forth in Article 17 of the Development Agreement, Buyer or
Nokia-specific 18 GHz or 38 GHz package designs, ____ Buyer or Nokia-specific
transceiver modules or Buyer or Nokia-specific DC/ALC/IF board designs developed
as a result of performance under the Development Agreement to parties other than
the Buyer or Nokia, without the express written consent of the Buyer.

                                    ARTICLE 3
              PURCHASE COMMITMENT AND SUBSEQUENT PURCHASE ESTIMATES

3.1  The Seller hereby agrees to sell to the Buyer and the Buyer hereby agrees
to buy from the Seller, on and subject to the terms and conditions contained in
this Agreement, the Products listed in Appendix 1.

3.2  The Buyer shall buy from the Seller and Seller agrees to sell the Buyer no
less than the minimum quantities of Products set forth in Appendix 1.

3.3  Other than with respect to the minimum quantities of Products as referenced
in Clause 3.2 above, the Parties hereto acknowledge that the purchase volumes
determined in Appendix 1 are regarded as estimates only based on the best
assumptions of the Buyer, it being agreed however, that under no circumstances,
except as set forth in Clause 3.2 above, shall such estimates be regarded as
binding purchase orders on behalf of the Buyer hereunder.

3.4  Notwithstanding the before said under Clause 3.3, the Buyer may provide the
Seller with a specific purchase forecast for a fixed period of time as shall be
agreed from time to time between the Parties. Such purchase forecast shall not,
however, be regarded as a binding order.

<PAGE>

                                    ARTICLE 4
                                     ORDERS

4.1  The Buyer shall place written orders for the Products by telefax. The
Seller shall forthwith and not later than one (1) week thereafter send the Buyer
and Buyer's designee, Nokia, a confirmation of the order. The Seller shall not
have the right to refuse to supply the Parts ordered by the Buyer in accordance
with the purchase quantities referred to in Clause 3.2 above.

4.2  In case either the Buyer's order or the Seller's confirmation of order
contains terms and conditions not mutually agreed upon between the Parties as
set forth herein, such terms and conditions shall be regarded null and void in
respect of such order.

                                    ARTICLE 5
                                     PRICES

5.1  RESERVED

5.2  The prices are specifically determined in Appendix 1 hereto.

5.3  The prices as set forth in Appendix 1 shall remain unchanged during the
period identified therein.

     Notwithstanding the beforesaid, it is agreed however, that in case the
Buyer exceeds the estimated purchase quantities referred to in Clause 3.2 above,
then the fixed prices shall be renegotiated to take into accord the revised
purchase quantities; in the case where the Buyer does not meet the estimated
purchase quantities referred to in Clause 3.2 above, then the fixed prices also
shall be renegotiated.

5.4  [Reserved]

5.5  All changes in prices shall become effective for all orders placed after
such change in price.

5.6  All prices are exclusive of all taxes and expressed in USD. All duties,
levies and income taxes imposed by any governmental authorities of the United
States in respect of payments due herein shall be to the account of Seller. All
duties, levies and taxes imposed by the authorities of Finland in respect of
payments due herein shall be to the account of Buyer.

                                    ARTICLE 6
                                TERMS OF PAYMENT

     The Buyer shall pay for the Products within sixty (60) days from the date
of the Seller's invoice, provided always, that the Buyer or Buyer's designee,
Nokia, has, prior to payment, received the Products in agreed amounts and in
acceptable condition; provided, however, that the Buyer or Buyer's designee,
Nokia, shall advise the Seller, within two (2) weeks of its receipt of the

<PAGE>

Products, if the Products are not in acceptable condition. Payment shall be made
within sixty (60) days of Buyer's receipt of Seller's invoice for the relevant
Products by electronic transfer of immediately available funds to Seller's
account as follows:

                             [ADD ENDWAVE ACCT INFO]

     In the event that payment is not made within such sixty (60) days, Buyer
shall pay a penalty of twelve (12) per cent per annum, not to exceed the rate of
one (1) per cent per month, of the amount owed to Seller.

                                    ARTICLE 7
                                TERMS OF DELIVERY

7.1  The terms of delivery are:
     FCA loaded Diamond Springs, CA. Incoterm ECA is modified pursuant to
     paragraph 7.3.

7.2  The forwarding agent in Finland is Oy Huolintakeskus Ab.
     The forwarding agent in USA is Emery Worldwide.

7.3  Notwithstanding Clause 7.1 hereof, risk of loss, title to, beneficial
ownership of, right of possession to, and all property rights in the Products to
be delivered hereunder shall remain with the Seller and pass to Buyer's
designee, Nokia, at the point of entry into Finland (but prior to unloading or
customs inspection at such point).

                                    ARTICLE 8
                                     PACKING

     Products are to be packed properly to withstand transportation and when
applicable, as required and instructed by the Buyer. Prices for the Products
shall include the cost of packing and/or protection required to prevent damage
to the Products during transportation. The Seller agrees to indemnify the Buyer
against any damage that the Products may suffer due to improper packing.

                                    ARTICLE 9
                                 DELIVERY TIMES

9.1  The agreed delivery times are of the essence in this Agreement.

9.2  The schedule terms are as described in Appendix 4. Shipment shall be made
strictly as per the orders (requested quantity and delivery time).

9.3  In case the Seller cannot deliver the Products in accordance with the
agreed delivery time, the Seller shall, not less than ten working days prior to
the agreed delivery time, inform the Buyer thereof in writing stating the reason
for the delay and propose a new date for delivery.

9.4  In case the Parties have not agreed on a new date of delivery in accordance
with

<PAGE>

Clause 9.3 above, and in case the respective delivery of the Products is delayed
ten (10) working days or more from the agreed delivery time due to reasons
solely attributable to the Seller, the Buyer shall have the right to cancel the
respective order without any liability to the Seller. Should the Buyer in any
such case purchase the respective Products from a third party supplier, then the
Seller shall be liable to compensate the Buyer up to the value of the respective
order.

9.5  In case the Buyer does not wish to exercise the right of cancellation
provided under Clause 9.4 above, then in case of delays in delivery attributable
to the Seller, the Buyer shall be entitled to liquidated damages equivalent to
the liquidated damages that Buyer shall owe to Nokia under the Nokia Agreement.

9.6  Notwithstanding Clause 9.5 above, in case the Seller fails to notify the
Buyer of the delay in accordance with Clause 9.3 above and the Buyer does not
wish to exercise the right of cancellation provided under Clause 9.4 above, then
the Seller shall be obliged to pay to the Buyer liquidated damages equivalent to
the liquidated damages that Buyer shall owe to Nokia under the Nokia Agreement..

9.7  The liquidated damages determined above in Clauses 9.5 and 9.6 and in
Clause 11.2 below, or Buyer's right to cancel an order pursuant to Clause 9.4,
shall constitute Buyer's exclusive remedy in respect of delays in delivery under
this Agreement. The Buyer shall not be obligated to show evidence to the Seller
in respect of having suffered actual damage as a result of the delay in delivery
in order to claim the liquidated damages. The Buyer shall be entitled to deduct
the liquidated damages from any payments to be made to the Seller under this
Agreement, and the Seller shall be obliged, upon request by the Buyer, to
provide the Buyer with a credit advice therefor.

                                   ARTICLE 10
                          RESCHEDULING AND CANCELLATION

10.1 The Buyer may, without additional costs, upon notice to (the Seller not
less than three (3) weeks prior to the intended date of delivery, re-schedule
the respective delivery to take place within a four (4) month period following
the intended date of delivery.

10.2 The Buyer may, without additional costs, upon notice to the Seller not
less than seven (7) weeks (according to the normal lead time of each Product)
prior to the intended date of delivery, cancel the respective delivery.

10.3 In the event of delivery cancellation, the Seller shall submit to the
Buyer, and the Buyer shall pay to the Seller, the costs incurred by the Seller
in support of Buyer-specific components and the price, as defined in Appendix 1,
of Products in buffer stock of any completed Products incurred by the Seller in
connection with such cancellation, as supported by a detailed written statement
and supporting documentation (such as a Seller-incurred cost report and vendor
invoices), and, if requested by the Buyer, verified to the Buyer by the Seller's
independent auditors at the Buyer's expense. Upon payment of such amount, the
Buyer shall have no further liability towards the Seller in connection with such
delivery cancellation.

<PAGE>

                                   ARTICLE 11
                                   INSPECTIONS

11.1 The Buyer, or the Buyer's designee, Nokia, shall inspect the Products upon
delivery to ascertain correct quantities and whether there exists any visible
damage in the Products delivered. The Seller agrees to replace all faulty
Products, at Seller's expense, and deliver additional Products in order to meet
the correct quantities without delay. In any such cases, the relevant incoming
inspection report will be given to the Seller without delay. The Buyer, or the
Buyer's designee, Nokia, shall return immediately the rejected Products to the
Seller unless otherwise agreed upon between the Parties. Return of the Parts
shall be made at the Seller's expense.

11.2 Without affecting the generality of the beforesaid in Clause 11.1, the
Buyer, or the Buyer's designee, Nokia, may use statistical sampling methods in
the incoming inspection as is specifically determined under Appendix 3 hereto.
In case the delivered Products do not pass this inspection, then the Buyer, or
the Buyer's designee, Nokia, has the right to reject the whole particular
delivery. In any such case, the Buyer shall have the option to either (i) demand
the Seller to forthwith replace the rejected delivery or (ii) cancel the
respective delivery without any liability thereof to the Seller. In case of
replacement by the Seller of the rejected delivery, then the Seller shall be
obliged to pay the Buyer liquidated damages in accordance with Clause 9.5 above
calculated from the date of original delivery to the date of replacement
delivery as Buyer's sole remedy for Seller's breach of its obligations under
this Clause 11.2.

11.3 Notwithstanding Clause 11.2, in case the Buyer or Nokia wishes to sort a
delivery that has failed the inspection referred to above in Clause 11.2 in
order to ascertain whether certain Products may nevertheless be suitable (or use
by the Buyer), then the Buyer or Nokia may do so upon agreement with the Seller
of the compensation of the additional costs accrued thereof to the Buyer.

11.4 In certain cases, the Buyer and the Seller may agree, that the Seller shall
undertake the incoming inspection of the Parts on behalf of the Buyer. In any
such case, the procedures determined in Appendix 3 shall be strictly followed.

                                   ARTICLE 12
                              QUALITY REQUIREMENTS

     The Seller has established quality requirements together with the Buyer
(hereinafter referred to as "Quality Requirements"), set forth in Appendix 3,
which describe the various measures Seller shall undertake in order to meet the
quality requirements and specifications for this Agreement. Seller's obligations
under this Agreement shall be performed in accordance with those Quality
Requirements

                                   ARTICLE 13
                                FACILITY SURVEYS

     Each of the Buyer and Nokia reserves the right, by itself or through its
appointed representative, during regular business hours and following reasonable
notice to the Seller, to review the Seller's physical facilities and the
Seller's quality control procedures, both prior to first delivery

<PAGE>

of the Products under this Agreement and periodically thereafter, in order to
assure compliance with the requirements of Appendices 2 and 3. The right
determined herein above shall also apply to the Buyer's and Nokia's customers.
The Seller shall maintain quality control procedures mutually agreement upon by
the Parties as a result of such facility survey. In the event that the Buyer or
Nokia determines, in good faith, during any facility survey, that the quality
procedures applied by the Seller are insufficient to insure consistent
acceptable quality as set forth in Appendices 2 and 3, then the Buyer or Nokia
shall specifically inform the Seller thereof and request corrective measures to
be undertaken by the Seller. The Seller hereby agrees to undertake any such
mutually agreed upon corrective measures without delay. Seller agrees to request
its subcontractors to comply with the requirements of this Article 13 as they
relate to the work to be performed by such subcontractors.

                                   ARTICLE 14
                                    WARRANTY

14.1 The Seller shall give a warranty for a period of [*]
from delivery (hereinafter referred to as the "Warranty Period") for the
Products supplied hereunder. The warranty period provided hereunder shall
include that the Products supplied shall be new and unused, (free from defects
in material and workmanship and shall meet the Specifications (Appendix 2) and
Quality Requirements (Appendix 3).

14.2 The Seller shall repair or replace, at its own option and cost and without
delay, all Products that fail to satisfy the foregoing warranty within the
Warranty Period.

14.3 In case more than [*]of the Products in a particular
delivery prove to be defective within the Warranty Period, then the Seller
shall, at its own cost and without delay, replace the respective remaining
Products of that particular delivery with new ones and this warranty shall apply
to such replacement Products for the unexpired portion of the Warranty Period or
[*], whichever is longer.

14.4 With reference to Clause 14.2 above, in case the Parties mutually agree
that the Buyer shall undertake the repair or replacement of such defects on
behalf of the Seller, then the Seller shall compensate the Buyer for the costs
accrued thereof.

14.5 THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER ORAL,
WRITTEN, EXPRESS, IMPLIED, OR STATUTORY. IMPLIED WARRANTIES OF FITNESS FOR A
PARTICULAR PURPOSE AND MERCHANTABILITY SHALL NOT APPLY. SELLER'S WARRANTY
OBLIGATIONS AND BUYER'S REMEDIES HEREUNDER (EXCEPT AS TO TITLE) ARE SOLELY AND
EXCLUSI\TELY AS STATED HEREIN.

                                   ARTICLE 15
                                PRODUCT LIABILITY

     Notwithstanding the above in Article 14, the Seller shall be liable for
damage to property other than the Products and/or to persons caused by a
manufacturing defect in the Products for which the Seller is solely responsible.
The Seller shall compensate the Buyer for any damage that the Buyer shall be
obliged to pay to its customer or any other by court or arbitration award or by

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

settlement out of court; provided, however, that the total liability of the
Seller on any such claim, whether in contract, tort (including sole or
concurrent negligence), or otherwise, arising out of, connected with, or
resulting from such manufacturing defect [*]. The Buyer
shall, and at the cost of the Seller, assist the Seller against any product
liability claim with reasonable efforts.

                                   ARTICLE 16
                          DISCONTINUATION OF PRODUCTION

     If the Seller shall, at any time during the validity of this Agreement or
thereafter, discontinue to manufacture any specific Products, a notice to this
respect must be given to the Buyer and Nokia at least twelve (12) months prior
to the intended date of discontinuation, in order to give the Buyer a chance to
place an end-of-life order before the discontinuation. Such Products shall be
delivered in one or more partial deliveries in accordance with the Buyer's
instructions within twelve (12) months from the order date.

                                   ARTICLE 17
                            ENVIRONMENTAL MANAGEMENT

     Nokia endeavors to comply with the principles of the Business Charter for
Sustainable Development (published by the International Chamber of Commerce in
1991) for environmental management. The Buyer encourages the adoption of the
principles therein by (he Seller and its subsuppliers. The Buyer may, where
appropriate, request improvements in the Seller's practices to ensure compliance
with the said principles.

                                   ARTICLE 18
              INDUSTRIAL PROPERTY RIGHTS AND PATENT INDEMNIFICATION

18.1 Ownership of the copyright in all drawings, specifications, manuals,
documents, data, and software provided by one Party hereto to the other under
this Agreement shall remain with the Party first referred to above but the
receiving Party shall be deemed to have the right to use such copy right for the
performance of the Agreement hereunder.

18.2 Seller agrees that it shall to the extent its design is concerned, at its
own expense and at its option, defend or settle any claim, suit, or proceeding
brought against Buyer, Nokia or any customer of Buyer or Nokia, based on an
allegation that a Product furnished under this Agreement constitutes a direct or
a contributory infringement of any claim of any patent, mask work, or copyright,
which exists as of the date of this Agreement. This obligation shall be
effective only if Buyer shall have made all payments then due and if Seller is
notified of said allegation promptly in writing and given authority,
information, and assistance for the settlement or defense of such claim, suit,
proceedings. Seller shall pay all damages and costs assessed in such suit or
proceedings. In the event of a final adjudication by a court of competent
jurisdiction that its Product infringes or violates any third party intellectual
property right or if the use or sale thereof is enjoined, or if the provisions
of any negotiated settlement Agreement prohibit the use of the Product, Seller
shall at its sole option and its own expense, use commercially reasonable
efforts to either: (a) procure for Buyer the right to continue using the
Product; (b) replace it with a substantially equivalent non-infringing

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

Product; or (c) modify it so it becomes non-infringing but substantially
equivalent.

18.3 The foregoing indemnity does not apply to the following: (1) Infringement
by a combination of Products furnished under this Agreement with other parts not
furnished hereunder unless Seller is a contributory infringer; (2) Infringement
resulting from changes or modifications made to or from the Part by Buyer or
Nokia; and (3) Any settlements of a claim, suit, or proceeding made without
Seller's written consent.

18.4 The foregoing states the entire liability of Seller with respect to
infringement or violation of third party intellectual property rights in
connection with Parts furnished under this Agreement.

18.5 In the event any Product to be furnished under this Agreement is to be made
in accordance with drawings, samples or manufacturing specifications designated
by Buyer or Nokia and is not the design of Seller, Buyer agrees to defend to the
extent Buyer's or Nokia's design is concerned, indemnify and hold Seller
harmless to the same extent and subject to the same requirements as set forth in
Seller's indemnifications of Buyer as set forth in Section 18.2 above.

                                   ARTICLE 19
                                 CONFIDENTIALITY

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

     (a) was in the possession of the Receiving Party prior to disclosure
hereunder; or

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

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

     (d) was independently developed by personnel of the Receiving Party having
no access to the Information.

19.2 The provisions of this Article 19 shall survive the termination of this
Agreement for whatsoever reason.

                                   ARTICLE 20
                                  FORCE MAJEURE

20.1 Neither Party shall be liable to the other for any delay or non-performance
of its obligations hereunder in the event and to the extent that such delay or
non-performance is due to an

<PAGE>

event of Force Majeure.

20.2 Events of Force Majeure are events beyond the control of the Party which
occur after the date of signing of this Agreement and which were not reasonably
foreseeable at the time of signing of this Agreement and whose effects are not
capable of being overcome without unreasonable expense and/or loss of time to
the Party concerned. Events of Force Majeure shall include (without being
limited to) war, civil unrest, strikes, lock-outs and other general labor
disputes, acts of government, natural disasters, exceptional weather conditions,
breakdown or general unavailability of transport facilities, accidents, fire,
explosions, and general shortages of energy and materials.

20.3 In the event that the delay or non-performance of either Party hereto
continuous for a period of six (6) months due to reasons of Force Majeure, then
either Party shall have the right to terminate this Agreement with immediate
effect.

                             ARTICLE 21
                      EFFECTIVE DATE AND TERM

21.1 This Agreement shall become valid and effective on the date of signature
hereof and shall remain valid until July 23, 2001.

21.2 RESERVED

21.3 The termination of this Agreement in accordance with Clause 22.1 below
shall not affect the delivery of the Products, in accordance with the terms and
conditions hereof, which have been ordered and confirmed prior to the
termination.

21.4 At the conclusion of this Agreement Seller shall promptly submit to Buyer,
and Buyer shall pay to Seller, the total costs incurred by Seller in supporting
the Buyer-specific components in buffer stock and the price of Products held in
buffer stock detailed in Appendix 1 and Clause 2.4, as supported by a detailed
written statement and supporting documentation (such as Seller incurred cost
report and vendor invoices), as determined in accordance with Seller's standard
accounting practices and, if requested by Buyer, verified to Buyer by Seller's
independent auditors at Buyer's expense. Upon payment of such amount, Buyer
shall have no further liability towards Seller in connection with this
Agreement.

                             ARTICLE 22
                       PREMATURE TERMINATION

22.1 In the event that a Party hereto is in default of a material obligation
under this Agreement and fails to remedy such default within a reasonable time
fixed by the non-defaulting Party (which period shall not be less than thirty
(30) days) in a written notice drawing the attention of the defaulting Party to
the default and requiring the same to be remedied, then the non-defaulting Party
shall have the right to terminate this Agreement with immediate effect after the
expiry of the

<PAGE>

period fixed. In the event of bankruptcy, receivership or comparable procedure
under applicable bankruptcy Ordinance of a Party hereto or in case the default
is not capable of being remedied within a reasonable time (which period shall
not be less than thirty (30) days) then the non-defaulting Party may terminate
this Agreement forthwith.

22.2 The termination of this Agreement in accordance with Clause 22.1 above,
shall also terminate the carrying out of any outstanding orders, whether
confirmed or not.

22.3 In the event of termination by Seller for Buyer's nonpayment as stated in
Clause 22.1, Seller shall promptly submit to Buyer, and Buyer shall pay to
Seller, the total costs incurred by Seller of Buyer-specific components and
work-in-process, and the price, as defined in Appendix 1, of any completed
Products in buffer stock, incurred by Seller in connection with such
cancellation, as supported by detailed written statement and supporting
documentation (such as Seller incurred cost report and VENDOR invoices), and ,if
requested by Buyer, verified to Buyer by Seller's independent auditors at
Buyer's expense. Upon payment of such amount, Buyer shall have no further
liability towards Seller in connection with such nonpayment.

                                   ARTICLE 23
                    APPLICABLE LAW AND SETTLEMENT OF DISPUTES

23.1 This Agreement shall be governed by the laws of the State of California. In
addition, the United Nations Convention on the International Sale of Goods (the
Vienna Convention) shall apply to all sales contracts pertaining to the Parts
between the Parties.

23.2 Any and all disputes arising out of or in connection with this Agreement
shall be finally settled according to commercial arbitration rules of the
American Arbitration Association by three (3) arbitrators appointed in
accordance with the Rules of that organization. The arbitration proceedings
shall be conducted in Los Angeles, CA in the English language. The arbitration
award shall be final and binding on the Parties.

                                   ARTICLE 24
                                FINAL PROVISIONS

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

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

<PAGE>

cancelled and superseded by this Agreement.

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

     APPENDIX 1 Parts, Purchase volumes and Prices

     APPENDIX 2 Specifications

     APPENDIX 3 Quality Requirements

     APPENDIX 4 Operating Model

     In case of any discrepancies between the above documents, the text of this
Agreement document shall always prevail over any of the Appendices (with the
exception of Appendix 4) or the Schedules thereto. The terms and conditions of
Appendix 4 hereto shall alter the contents of this Agreement only to the extent
expressly stated in Appendix 4. All other conditions of this Agreement shall
remain unchanged. The Appendices shall apply in the order set forth above.

24.4 Alterations or amendments to this Agreement shall be made in writing with
the signature or both parties.

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

     REPRESENTING THE SELLER: Endwave Corporation
                              321 Soquel Way
                              Sunnyvale, CA 94086

     REPRESENTING THE BUYER:  TRW Inc.
                              Space & Electronics Group

                              One Space Park
                              Redondo Beach, CA 90278 USA

24.6 [RESERVED]

24.7 Notwithstanding any other provision of this Agreement, neither Party shall
under any circumstances be liable for any indirect nor consequential damage
howsoever arising under or in connection with this Agreement, except in cases of
intentional misconduct or gross negligence

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

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

<PAGE>

     24.10 Buyer agrees that it shall not knowingly sell, transfer, or deliver,
directly or indirectly, and part of portion of the Products or related
documentation supplied by Seller pursuant to this Agreement to any person or
organization in any country where such sale, transfer, or delivery by Buyer
would be prohibited by law or regulation nor or hereafter in effect which
imposes any restrictions on United States trade with foreign countries. Seller's
obligations hereunder are conditioned upon Seller's obtaining, from the
appropriate agencies or departments of the United States Government, all export
licenses and other governmental permits that may be required by law to enable
Seller to export the Parts supplied by Seller pursuant to this Agreement. Seller
agrees to take all reasonable steps to obtain such licenses and permits. In the
event that the required approvals are not granted, withdrawn, or not extended,
then either party may terminate this Agreement and such termination for purposes
of determination of costs shall be considered caused by Force Majeure as defined
in Article 20 of this Agreement.

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

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

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

SIGNED FOR
AND ON BEHALF                                    TRW Inc.
OF                                               Space & Electronics Group

Endwave                                          Division
Corporation

SIGNED FOR
AND ON BEHALF
OF
<PAGE>

APPENDIX 1           PARTS, PURCHASE VOLUMES AND PRICES
APPENDIX 2           SPECIFICATIONS
APPENDIX 3           QUALITY REQUIREMENTS
APPENDIX 4           ROLLING FORECAST

                                       18
<PAGE>

                                   APPENDIX 1

                   PARTS/PRODUCTS, PURCHASE VOLUMES AND PRICES

     1. PRICES

     1.1 UNIT PRICE FOR 18/38 and 23/26 GHz MODULES

               The agreed unit prices for cumulative order volume are as follows

                                       [*]

          The per unit pricing above is based on the number of units previously
          delivered by the buyer to Nokia under the Nokia Agreement and the
          number of units delivered by the Seller hereunder. For example, if on
          the date hereof, Nokia has alreeady ordered from the Buyer under the
          Nokia Agreement [*] the pricing units hereunder shall be [*].

     2. PURCHASE COMMITMENT VOLUME

               The Buyer commits to purchase volume of [*] provided however, the
               production capability of the Seller to start shipments at below
               stated week of each frequency band at following table defined
               estimated level. The customer demand levels will be given in the
               bi-weekly sent Rolling Forecast and the agreed committed maximum
               capacity may be reviewed in the monthly management meetings and
               will be in alignment relative to the Rolling Forecast and the
               general business outlook. The minimum order commitment takes into
               account the number of units previously ordered by Nokia under the
               Nokia Agreement. For example, if on the date hereof, Nokia has
               already ordered from the Buyer under the Nokia Agreement [*] the
               minimum number of additional units (18/38 GHZ and 23/26 GHZ units
               combined) that the Buyer must order hereunder will be an
               [*]. To the extent that the Buyer fails to order such minimum
               amount, the Seller agrees that the only liability that the Buyer
               shall have to the Seller is assignment of the contractual claim
               that the Buyer has against Nokia under the Nokia Agreement for
               failure to procure the requisite minimum orders thereunder.

               The units manufactured for the rate demonstration will be
               shippable products according to the product specification.
               The same procedure will take place always when taking a new
               frequency product to the volume production.

               The committed volume is divided to different frequency bands as
               follows

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

                   I)       18/38 Ghz                               [*]
                   II)      23/26 Ghz                               [*]

                   Minimum order quantity / frequency band is [*] and
                   if the total order volume of I) or II) exceeds the above
                   mentioned amount then the other will diminish accordingly and
                   the total commitment will stay as agreed [*]. As
                   indicated above, [*] takes into account [*].

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

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

<PAGE>

                                   APPENDIX 2

                                 SPECIFICATIONS

<PAGE>

[NOKIA LOGO]

                                     REPORT                     1(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

[*] INTEGRATED MICROWAVE MODULE SPECIFICATIONS
<TABLE>
<CAPTION>
<S>                           <C>
        DATE                  MODIFIED ITEMS
        13.08.1997PMi         All frequency bands combined to 1 document. 0 (text). 1.1, 1.2
                              1.3, 1.4, 1.8, 1.9, 1.10, 1.16, 1.19.2, 1.24, 1.28, 2.1, 2.2, 2.3, 2.5,
                              2.7, 2.8, 2.9, 2.14.1, 2.15, 3.1, 3.2.6, 3.3, 3.3.5, 3.3.8, 3.3.8.1,
                              3.3.9, 4.1, 4.2, 4.3, 4.5, 4.7, 4.10, 4.11, 4.12, 4.14, 4.15, 4.16, 5.6,
                              5.7, 6.2, 6.2.1, 6.2.2, 6.4, 6.9.5
        15.08.1997 PMi        0(text picture). 1.11, 1.12, 1.13, 1.14, 1.19.2, 2.1, 2.2, 2.3, 2.4,
                              2.6, 2.12, 2.14.1, 3.2, 3.2.3, 3.2.6, 3.3, 3.3.8, 3.3.8.1, 4.1, 4.2, 4.9
                              4.14, 4.15, 4.15.1, 4.15.2, 4.15.3, 5.6, 6.2, 6.4.2
        18.08.1997 PMi        1.1, 3.2.3
        01.09.1997 MKo        Forms of the document changed. 0(text). 1.9, 1.9.1, 1.9.2, 1.2.9, 2.15,
                              3.3 (note), 3.3.8.1 (note), 3.3.9, 4.14, 4.15, 4.15.1, 4.15.2, 4.16,
                              4.17, 5.8
        03.09.1997 MKo        0 (text). 1.5 (note), 2.7, 2.8, 2.13, 2.14, 3.2.2, 3.2.6, 4.11, 4.12, 4.14, 6.4
        22.10.1997 MKo        1.9.3 Note 1, 1.2.5, 1.26, 1.27, 2.2, 2.3, 2.12, 3.2.1, 5.2, 6.3, 6.4
        07.11.1997 MKo        1.19.2 Note 2, 3.3.1, 5.2, 6.4.2, 6.8
        12.11.1997 PMi        0. 1.29, 2.5, 2.9, 6.4.2, 6.9
        26.11.1997 MKo        2.15, 4.13, 6.9
        23.02 1998 MKo        3.2.3, note 2, 3.3.1, 3.3.8.1, 4.2.1, 6.9.5
        25.02 1998 PMi        2.5, 2.6, 2.13, 2.14, 4.1, 4.2, 6.9.5
        05.03.1998 DS         4.2.1, 6.9.5
        20.03.1998 MKo        1.1, 1.9.2 (note), 1.9.3 (note 2), 3.3.8 (note 3), 4.2.1
        07.04.1998 MKo/JLo    1.9.2 (note), 1.2.5, 2.1, 2.9 (note), 2.13, 3.3.8 (note 3), 4.1 (note),
                              4.2 (note 2), 4.2.1 (note 1), 4.14, 4.15, 4.17
        15.04.1998 JLo        4.1.1
        21.04.1998 PMi/JLo    0. 1.1, 2.2, 4.1, 4.2
        22.05.1998 MKo/JLo    0. 1.9.3 (note), 1.9.3, 1.25, 2.2, 3.2.2, 3.2.3, 4.5 (note added),
                              4.15.2, 4.17, 6.4 (note added)
        01.07.1998 MKo        1.19.1, 3.2.3 (figure), 3.2.6 (note 1), 4.13.1, 5.6, 5.8 (note)
        19.08.1998 JLo        2.5, 4.4.1, 4.8.1, 4.16.1, 4.17.1
        18.09.1998 MKo        1.6, 2.11, 2.15, 3.3.4, 4.2.1, 4.13, 4.14
</TABLE>

        modification list continues on the following page

[*}

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                      17.2.-99        17.2.99

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<PAGE>

[NOKIA LOGO]

                                     REPORT                     2(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

       28.09.1998 MKo          Abbreviation MWU changed to mw module. 0.(related
                               documents list) 1.19.1, 1.23 (document number),
                               4.5 (note 2), 4.13.1 (document number), 6.2
                               (document number in note 1)
       25.11.1998 MKo          0(rel doc), 2.2.1, 2.5, 2.6, 2.9, 3.2.2, 3.2.3
                               (note 1 & picture), 5.2, 6.2
       01.02.1999 JLo          1.1 (15GHz/420 MHz), 2.2.1 (-20dHm->-10 dBm),
                               4.13.1 (-28 dBc -> -26 dBc)
       08.02.1999 MKo          Document Id added E10014774QE_00
       09.02.1999 JLo          3.2.7 (Itx and Qtx polarity)
       10.02.1999 JLo          Header/footer updated
       15.02.1999 MKo          O (Related documents version)

[*]

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<PAGE>

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                                     REPORT                        3(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

            0.     GENERAL

            The microwave module consists of:

           [*]
           [*]

                  RELATED DOCUMENTS:

           1)  [*]                                        [*]

           2)  Microphonics test setup

           3)  LO leakage test setup

           4)  Maximum dimensions. drawings

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        4(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

          Below is one possible solution for the microwave module topology:

[*]

    WG-/illegible/ RF_in and RF_out mates with WG-flange or Coax-connector as in
the table below:

[*]

            A multipin connector will be used for
                          -RX_IF
                          -TX_TUNE
                          -TX_FDIV
                          -Itx
                          -Qtx
                          -ENV_MEAS
                          -MUTE
                          -TX_PWR
                          -BS_DET
                          -power supply connections
                          -memory control circuits
                          -CHOP
                          -MPA_CTRL

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        5(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

         There shall be a [*] of at least [*] on all the contact surfaces of
connectors.

         Note 2: TBD (to be determined) means in this document that the
                 specification is not yet known and is under discussion.
                 Proposals from both sides will be taken into account but the
                 specification shall be agreed on based on mutual understanding
                 and shall be accepted by Nokia.

                 Must/goal statement means: the decision shall be made by
                 Milestone E2.

                 Other items can be set under discussion also if there is some
                 reason for that.

         Note 3: The supplier has to take into account measurement inaccuracies
                 in verifying the specifications. This applies mainly for [*]
                 output power. The verified output power or compression point
                 shall be reading of the power meter plus its measurement
                 inaccuracy.

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        6(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

1.   OSCILLATOR RELATED ISSUES

  1.1 Frequency bands

     Frequency Band   TX carrier frequencies, MHz           Duplex spacings

           [*]                        [*]                         [*]

        Note 1: These are transmitter [*] frequencies. In addition [*] allowance
        for modulation has to be made in [*] amplifiers.

        Note 2: In the case of several [*] appear in one band [*] one mw module
        should work [*] if possible.

        1.2.Deleted

        1.3.Deleted

        1.4.Temperature stability

        The temperature stability must be good enough to enable operation [*]
        see temperature range spec.item 6.4

        1.4.1 Deleted

        1.5. Polling by nominal [*] or muting in transmit    Goal    [*]
        Note: with constant bit patterns.                     Must    [*]
        e.g. all zeros/[*]

        Note: this is at the transmit frequency but can be measured for instance
        from the [*] Then the [*] has to be taken into account.

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        7(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

      1.6.Deleted

      1.8.[*] variation over [*] tuning range

      1.9.[*] for each [*] at divider output [*] for DC tuning voltage enough to
      cover the band. The [*] for DC voltage has to be [*] for AC voltage

                   [*]

                   [*]

                   [*]

      1.9.1. Time constant[*]                                [*]

      1.9.2. Input impedance [*]                             [*]

      Note: The phase angle of [*] must be [*] at frequencies [*] verification
      by analysis).

      1.9.3. [*] for each [*] at divider output [*] for AC tuning voltage [*]

      Frequency Band. GHz        Minimum %/V            Maximum %/V
             [*]                     [*]                    [*]

      Note 1. The AC tuning slope is specified here in units [*] of operating
      center frequency [*] per volt. In these units it can be calculated as well
      from the final [*] frequency as from the [*] frequency.

      1.10.[*]                                                 [*]

      Note: needed range means normal operation. allowed range means voltage
      which might be generated [*] during startup and is not allowed to do harm
      to the [*] like startup problems or breakdown effects.

      1.11.-.14. Deleted

      1.15. Tuning connector                                   [*]

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        8(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

      1.16.Phase noise (after multiplication).

      Frequency Band      10 kHz from     100 kHz from     1 MHz from
      GHz                 carrier         carrier          carrier
            [*]               [*]            [*]               [*]

      Note: noise floor of the [*] shall be low enough not to degrade noise
      performance of the downconverter due to any leakeage in the module.

      Note: [*] phase noise shall behave well outside specified points, so that
      integrated phase noise from carrier to tens of [*] from carrier is in
      control.

      1.19. Spurious outputs around [*] carrier signal

      1.19.1 Ripple modul [*]                                [*]

      Note: Ripple in any power supply voltage.

      1.19.2. Spurious signals

      Frequency Band. GHz     Spurious frequencies     Spurious level

              [*]                     [*]                    [*]

      Note 1: A CW signal of [*] to be inserted to the power supply voltages
      during the measurements.
      Note 2: [*] means [*] more near the carrier.

      1.23. Microphonics

               Nokia microphonics specification of the complete outdoor unit [*]

               This item is tested [*] The VCO must meet this system level
               specification tested and approved [*]

               In case of significant changes in the [*] the effect of the
               modifications to the system level microphonics performance must
               be [*]

               Note: the supplier shall on a sample basis monitor this
               specification continuously.

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        9(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           1.24. Phase hits

                            VCO must meet the Nokia system level specification
                            for [*] see temperature range spec. item 6.4.

                            Max. frequency jump during cycling        [*]

                            This item is finally tested and approved  [*]
                            Supplier must during development be able to show and
                            verify that basic design meets this spec.

                            Note: Phase hits are sudden changes in the output
                            signal that are caused eg. by bad contacts and
                            thermal expansion or mechanical stresses expiring.

           1.25             Output power afer frequency divider       [*]

           1.26             Divider output impedance, nominal         [*]

           1.27             Divider output return loss                [*]

           1.28             Divider output frequency                  [*]

           1.29             Division ratio

            Frequency Band, GHz      Possible division ratios: Transmit carrier
                                     frequency/Divider output frequency

                    [*]                           [*]

           Note 1: The output matching [*]. Has to be able to [*] [*].

           Note 2: Some other division ratios [*]. If other values are used the
           AC tuning slope of the mw module VCO has to be changed accordingly.
           [*]

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        10(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

2. LNA/IF MIXER RELATED ISSUES

           2.1. [*] center frequencies

            Frequency Band, GHz            RX, IF center frequency, MHz

                    [*]                             [*]

           2.2 Spurious signals in [*]                           [*]
           Note: this is when the output signal level
           is less than [*] therefore [*] is not
           considered

           2.2.1 Spurious signals outside [*]                    [*]

           2.3. [*] return loss [*]                              [*]

           2.4. [*] connector                                    [*]

           2.5. Total RX gain (freq..temp.)

             Frequency Band, GHz           RX gain.dB

                    [*]                        [*]

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        11(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           2.6. RF_in RF max. level [*]                       [*]
                                           goal
                       [*]                 must

           2.7. Total RX gain variation [*]                   [*]

           2.8. Total RX group delay variation [*]            [*]

           2.9. My module total RX NF

            Frequency Band, GHz                 mw module total RX NF, dB

                    [*]                                     [*]

           Note: The internal [*] of the mw module must be good enough, so that
           the transmitter does [*]. The needed isolation depends on the [*].

           2.10. Image frequency rejection without diplexer          [*]

           2.11. RX return loss                                      [*]

           2.12. Gain stability over frequency                       [*]

           2.13. Gain stability over temperature [*]                 [*]
                                       [*]

           2.14. Total gain stability, [*]                           [*]
                                       [*]

           Note: This should be as good as possible to allow for good accuracy
           in determining input level based on measurement[*].

           2.14.1 RX stability bandwidth                             [*]

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<PAGE>
[NOKIA LOGO]

                                     REPORT                        12(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           2.15 CW signal spurious mixing conversion gain to [*] relative to the
           main signal.

               Frequency range          Rel. conversion gain of the mw module

                    [*]                                   [*]

           Note 1: [*] can be [*] frequency in list 1.1 (either low band or high
           band depending on the mw module) and is the acutal [*] frequency of
           the mw module during the measurement. [*].

           Note 2: The input level of the CW signal is [*].

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        13(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

3. TX MODULATOR RELATED

           3.1 Transmitter subbands                         [*]

           3.2 [*]

           3.2.1 Impedance (must be DC-coupled), nominal    [*]

           3.2.2. Return loss to a [*]                      [*]

           3.2.3  Input level, [*]                          [*]

           Note 1: This is from a [*]. If the return loss of the mw module
           changes, the input level at the interface will change accordingly
           from the nominal value [*].

           Note 2: Input level is defined by using a test signal that consist of
           a [*]. The result at the end frequency will be an [*]. The peak of
           the sinewave is [*].

           Note 3: Compensation of [*].

                      [*]

           3.2.4 [*]                               [*]

           3.2.5 [*]                               [*]

           3.2.6 [*]                               [*]
                 [*]                               [*]

           Note 1: The specifications 3.2.4 and 3.2.5 shall be fulfilled in the
           [*]. In biased operating condition, [*] is as specified in item
           4.13.1.

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[NOKIA LOGO]

                                     REPORT                        14(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           3.2.7 Polarity of I & Q

           The solarity of the modulator is defined as shown in figure A. The
           polarity can be tested by employing the circuit shown in figure B, in
           case of which [*] should be produced.

                                    [*]

           3.3 [*]

           Note 1: [*]

           Note 2: The signal shall be well [*].

           3.3.1 [*]

           3.3.2 Deleted

           3.3.3 Deleted

           3.3.4 Open loop frequency response, [*]
                       maximum value of the response vs. DC value      [*]
                       minimum value of the response vs. DC value      [*]

           3.3.5 Deleted

           3.3.6 Deleted

           3.3.7 Deleted

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                                     REPORT                        15(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           3.3.1 MPA_CTRL input                                      [*]

           Note 1: Max [*]

           Note 2: [*]

           Note 3: [*]

           3.3.2.1 Polarity of MPA_CTRL

                 [*]

           3.3.5 MPA_CTRL slope                                      [*]

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[NOKIA LOGO]

                                     REPORT                        16(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)                15.02.1999 MKo
Markku Koivisto                     Confidential

4. POWER AMPLIFIER RELATED

           4.1. TX output power.

            Frequency Band, GHz     O/P PWR.              O/P PWR
                                    set value =0dB       set value=max atten.
                   [*]                   [*]                  [*]

           Note By the [*] is meant that software setting which gives the
           corresponding power level. When the [*] one will get the highest
           useable power level.

           4.1.1 Noise power level at [*]                      [*]

           4.2 Output power [*].

             Frequency Band. GHz        PldB.dBm
                   [*]                     [*]

           Note 1: This is for the whole mw module transmit chain

           Note 2: The power amplifier anenuator must [*].

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<PAGE>

[NOKIA LOGO]

                                     REPORT                        17(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           4.2.1 Output third order intermodulation level IM, at each output
           level [*]

           Note: This applies to power levels which are [*]

           Note: [*]

           Note: [*]

           4.3 TX output power when MUTE "on" [*]

           4.4 TX-MUTE on/off control. [*]

           4.4.1 Maximum current of TX-MUTE control. [*]

           4.5 TX-MUTE on/off speed [*]

           Note 1: During a transient from "MUTE on" to "MUTE off" or vice
           versa, the [*]

           Note 2: The software will set TX_PWR and the control
           bits [*]. When the power will again be switched on, the sequence is
           [*]

           4.6 TX return loss [*]

           4.7 TX output power electronic control range [*]

           4.8 Electronic anenuator control voltage [*]

           [*]

           4.8.1 Maximum current of TX_PWR [*]

           4.9 Transmit power stability [*]

                                                     [*]

           Note: Transmit power is controlled by TX_PWR in [*]. This spec
           applies for all power levels. The curve is individually software
           calibrated [*]

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[NOKIA LOGO]

                                     REPORT                        18(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           4.10 Transmit power stability band width
                                                                 [*]

           4.11 Total TX gain variation [*]                      [*]

           4.12 Total TX group delay variation [*]               [*]

           4.13 Spurious emissions after [*] allowed level is as mentioned below
           plus antenna filter anenuation characteristics.

                      Spurious emissions of other frequencies after the antenna
                      diplexer
                      [*]

                                 [*]

                      Antenna filter anenuation characteristics:

                                 [*]

                      Note: [*]

           4.13.1 LO leakage                                     [*]

           Note: The LO leakage cancellation is based on [*]

           4.14 Speed of the transmit power levelling loop       [*]

           Note: Prescale bits and TX_PWR signal may [*]

           4.15 BS_DET signal [*]

           Note: [*]

           4.15.1 BS_DET signal voltage total range              [*]

           4.15.2 [*]

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

<PAGE>

[NOKIA LOGO]

                                     REPORT                        19(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           4.15.3 BS_DET signal output load                                 [*]

           4.16 [*]
                                                      frequency  [*]

           4.16.1 [*]                                                       [*]

           4.17 TX output power control

                       DET CTRL1    DET CTRL2
                       ---------    ---------
                       [*]          [*]

           4.17.1 Maximum current of DET_CTRL1 and DET_CTRL2 signals        [*]

-------------------------------------------------------------------------------
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    WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
    TO THE OMITTED PORTIONS.

<PAGE>

[NOKIA LOGO]

                                     REPORT                        20(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

5. BIAS AND TEMPERATURE CONTROL BOARD

           5.1.1. Positive supply voltage                           [*]

           5.1.2. Ripple voltage [*]                                [*]

           5.2. Positive supply current, continuous                 [*]
                       [*]

           5.3.1 Negative supply voltage                            [*]

           5.3.2 Ripple voltage                                     [*]

           5.3.3 Deleted

           5.4 Negative supply current                              [*]

           5.6 Pin allocation:

             Signal                   Abrev.                    Pin
              [*]                      [*]                      [*]

           Note: Connector types will be specified at milestorm: E2.

--------------------------------------------------------------------------------
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    WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
    TO THE OMITTED PORTIONS.

<PAGE>

[NOKIA LOGO]

                                     REPORT                        21(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           5.7 Deleted

           5.8 [*]                                         [*]
           Basaline chip
           [*]

           Note: The signaling directions are depicted in the block diagram in
           chapter "0.General". The TxD signal is from ASIC towards the mw
           module and the RxD signal is from the mw module towards the ASIC. The
           maximum allowed voltage of RxD towards the ASIC is [*].

6. GENERAL

           6.1. Construction

           6.2. Maximum dimensions with connector pairs (LxWrB)

             Frequency Band          Length      Width    Height
                      [*]              [*]        [*]       [*]

           Note 1: Refer to drawings no: [*]

           Note 2: Connector locations and pin numbering are shown in drawing

           6.2. Deleted

           6.2.2 Deleted

           6.3 Weight [*]                                       [*]

           6.4 Inside air temperatures in outdoor unit
                      [*]                                       [*]

           Note: The operation at temperatures of [*]:
                      [*]

--------------------------------------------------------------------------------
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    WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
    TO THE OMITTED PORTIONS.

<PAGE>

[NOKIA LOGO]

                                     REPORT                        22(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

        Name of specifications     Specification at  Specification at   Unit
                                   [*]               [*]
               [*]                                   [*]                 [*]

           6.4.1. deleted

           6.4.2. Maximum mw module baseplate temperature with maximum per
           dissipation [*]

           6.5. Humidity.                   [*]               [*]

           Note: The mw module must [*]

           6.6. Air pressure.               [*]               [*]

           6.7. Vibration.                  [*]               [*]

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

[NOKIA LOGO]

                                     REPORT                        23(23)
Radio Access Systems(RAS)            MWU Specifications
System Development(SD)               15.02.1999 MKo
Markku Koivisto                      Confidential

           6.8 Shock,      [*]

           6.9. MTBF. according to Bellcore or British Telecom at [*]

           6.9.4. Microwave module total                     [*]

           6.9.5 Expected Lifetime of the mw module          [*]

           Note: The expected lifetime of the mw module is [*]. The FITs of the
           mw modules will be followed and the long term statistic shall show
           better than [*]. This equals on average [*]. A fault is defined as a
           customer return attributed to the mw module.

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

<PAGE>

                                   APPENDIX 3

                              QUALITY REQUIREMENTS                         1(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

QUALITY REQUIREMENTS FOR PRODUCTION AGREEMENT OF MMIC-MODULES

1. PURPOSE

     The purpose of this document is to incorporate the manufacturing and the
     quality control process of the Seller into one entity, in a way that makes
     it possible to dispense with the Buyer and Nokia's receipt control as a
     routine procedure and normally forward the Products directly to production.
     The aim is to develop quality systems in a joint effort to the point where
     the Seller can assume full responsibility for his activities and for the
     quality of his products. In this way, the Buyer and Nokia's quality policy
     with regard to their Sellers is fulfilled (i.e. responsibility for quality
     is on the party carrying out the task). Both the Buyer and Nokia and the
     Seller regard the fulfillment of the final consumer's expectations and
     needs as the basis of their business operation. Their mutual business
     relations are considered enduring and the aim is to be successful together.

2. APPLICATION

This quality document is complementary to General conditions of Purchase. This
document applies to all components, units and devices supplied by the Seller to
the Buyer and Nokia (hereinafter referred to as "the Products").

3. DUTIES

In order to build up a fruitful co-operation, the parties assume the following
duties:
A. The Buyer and Nokia

-    Inform the Seller of any development projects that will have notable
     influence on the formers Seller relations.

-    Create the conditions, as far as is in his power, for mutually beneficial
     business relations

-    Disclose the quantities for and the nature of deliveries in good time

-    Supply, with every order of a new product, written documentation giving the
     expected quality requirements. In co-operation with the Seller the Buyer
     and Nokia make sure that the requirements are unambiguous.

-    Inform the Seller of reasons that are attributable to the latter and may
     result in the termination of business relations, early enough to allow the
     Seller to take the necessary measures in order to eliminate the said
     reasons.

<PAGE>

NOKIA
                                                QUALITY REQUIREMENTS        2(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

B. The Seller

-    Engages himself to produce and to deliver Products that comply with the
     quality requirements agreed upon and to respect the agreed delivery times.

-    Keeps an up-to-date list of his approved Sellers.

-    Provides evidence of ISO 9000 certification and permits control visits at
     his premises with reference to deliveries to the Buyer and Nokia.

-    Assumes responsibility for the quality of all his deliveries up to ex
     carrier including responsibility for products purchased as raw materials
     from his own Seller. Concerning the quality of the product up to the final
     consumer, this is not valid if previous integration of the products into
     the system or mishandling had caused a failure.

-    Informs the Buyer and Nokia without delay of any circumstances that may
     affect his deliveries or business relations.

-    Provides the Buyer and Nokia with the quality records when requested.

-    Continuously develops his quality systems and the quality of his products,
     in an effort to satisfy the needs of the final consumer.

-    Responsibility cannot be assured if the Quality of the Product is
     compromised by any kind of failure propagation (electrical, mechanical,
     functional, mishandling) from the System to the Product.

4. QUALITY ASSURANCE

     The Seller shall run an effective quality system capable of assuring that
     the requirements will be fulfilled. The quality system shall be in
     accordance with international quality standards ISO 9000 (EN 29000).

     Seller shall to the extent and within the time frames requested by the
     Buyer and Nokia send to the Buyer and Nokia a report of the results of the
     quality assurance measures described in the Seller's quality system
     documentation. Seller shall present agreed reports monthly. The reports
     shall cover the observations set out in the quality inspection program
     described in the Sellers Quality Plan.

     When a reported result deviates from the quality level according the
     incoming inspection plan, Seller shall, when requested, inform the Buyer
     and Nokia of the measures that Seller

<PAGE>

NOKIA
                                                QUALITY REQUIREMENTS        3(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

     has taken or will take in order to achieve the said quality level.
     Representatives of the Buyer and Nokia or the end user shall have the right
     to visit now and then the factories of the Seller or his subcontractors in
     order to observe the quality assurance or to make sure that the procedures
     and rules described in Seller's quality system documentation or Quality
     Plan are followed. Seller shall, when requested, demonstrate the working
     places and the instructions that are used during the production of the
     product.

5. QUALITY PLAN

     The Seller shall produce a total Quality Plan for the Product (according to
     ISO 9000) and deliver it to the Buyer and Nokia's quality assurance
     personnel at least two months prior to the commencement of production. The
     documentation shall clearly state the criteria that will be employed when
     releasing items to the Buyer and Nokia or when releasing items from any
     stage of production to next.

6. INSPECTION AND CONTROL

     The Buyer and Nokia donot accept any faulty [defective] Products. They have
     the right to return all faulty Products, regardless of at which stage of
     production the fault has been detected.

     Representatives of the Buyer and Nokia and the end user shall have the
     opportunity of visiting the factory of the Seller or his subcontractor
     before and during the production phase to inspect the production of the
     equipment to be supplied and to carry out any measurements considered
     necessary.

     The incoming inspection will be based on standard IEC410 (MIL-STD 105 E)
     and Nokia Telecommunications Quality Requirements. The sampling plan will
     be General inspection level II, single sample, AQL 2,5 for visual
     inspection. If the amount of defective products[*] in electrical
     incoming inspection or in the production test process, the delivery lot
     will be rejected. Defective product returned to the Seller will be at the
     cost of the Seller.

7. RELIABILITY

     The Seller's quality system shall clearly set out the procedures to be
     followed during the design and production of the product in order to
     prevent any departure from the Seller's internal reliability criteria.

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

NOKIA
                                                QUALITY REQUIREMENTS        4(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

     Seller shall analyze field data of MWUs provided by Buyer and Nokia to
     verify that MTBF and Expected Lifetime for MWUs are within the
     specification. In the case that any adverse deviation from specification is
     identified Seller shall immediately start and implement all the necessary
     preventive and corrective actions for future shipments to meet expected
     lifetime and MTBF.

     If requested by the Buyer and Nokia, the Seller shall provide a list of
     materials, which are used in the Product to the Buyer and Nokia's component
     quality assurance personnel. If unreliable materials or components are
     found, the Seller shall make appropriated modifications to prevent any
     possible reliability problems.

8. WARRANTY AND AFTER-SALES SUPPORT

8.1    Seller shall give a warranty for Products for a period specified in the
       Production Agreement. The warranty shall cover any defects in design,
       engineering, software, materials and workmanship of the Products.
       Defective units identified during said period shall be repaired or
       replaced free of charge to the Buyer and Nokia by Seller within the
       Production Agreement agreed time scales after receiving such Product to
       Seller's premises. The replaced or repaired Product shall be delivered to
       the Buyer and Nokia at the cost of the Seller.

8.2    Repairs and replacements covered by the above mentioned warranty shall be
       warranted to be free from defects in design, engineering, software,
       materials and workmanship as defined by Production Agreement.

8.3    Post-warranty repairs during the period of [*] after the last delivery
       shall be effected at "reasonable repair charges". A "reasonable repair
       charge" means [*]. Any repair, the cost of which to Seller that exceeds
       the "reasonable repair charge" shall not be performed by Seller, unless
       Seller agrees to perform such repair. Seller may choose whether to
       repair the defaulting product or to provide a new product to replace the
       defaulting product.

8.4    In the event that a Customer of the Buyer and Nokia requires a warranty
       period longer than agreed upon by the Parties hereunder Seller shall
       provide such extra warranty as long as the extra cost of such warranty is
       mutually agreed by the Parties.

8.5    A sufficient stock of spare Products will be made available to meet Buyer
       and Nokia's requirements. The quantities and price of this stock to be
       mutually agreed upon by Buyer and Nokia and Seller.

8.6.1  Within the Warranty period, if the percentage of defective Product in a
       particular delivery exceeds the maximum allowed by the Production
       Agreement, the Seller shall, at its own

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

<PAGE>

NOKIA
                                                QUALITY REQUIREMENTS        5(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

       cost and without delay, replace the respective remaining Products of that
       particular delivery with new ones and this warranty shall apply to such
       replacement Products for the unexpired portion of the Warranty Period or
       as defined by Production Agreement.

8.6.2  In the event that Seller would be unable to fulfill any of its
       obligations under clause 8.0 of this Document within 90 days, the Buyer
       and Nokia may take the corrective measures itself or through any other
       Manufacturer at the expense of the Seller.

8.7    In any case, repairs of all the individual units shall be duly documented
       in writing.

8.8    Seller shall inform Buyer and Nokia according to Production Agreement if
       it intends to stop manufacturing any units or spare parts for the Product
       in operation. At the same time Seller shall offer to supply Products that
       Buyer and Nokia will require for future needs. The offer shall be based
       on reasonable and agreed prices and commercial conditions.

9. COMPLAINTS

     In case of complaint, the Buyer and Nokia inform the Seller of the detected
     fault [defect] in writing within 14 days from its detection. On this
     occasion, the Buyer and Nokia and the Seller agree on the measures to be
     taken, such as:

     -    The Buyer and Nokia return the rejected lot to the Seller at the
          Seller's expense

     -    The Buyer and Nokia sort out the rejected lot at the Seller's expense
          and returns the faulty Products to the Seller, who either replaces
          them with faultless [conforming] Products or makes a credit note on
          the whole sum, depending on the Buyer and Nokia's choice.

     -    The Seller sorts out the lot and replaces the faulty Products on the
          Buyer and Nokia's or customer's premises in a time schedule mutually
          agreed between the parties.

     -    The Buyer and Nokia have the right to invoice the Seller for mutually
          agreeable controlling and handling cost involved.

10. MODIFICATIONS

     In accordance with paragraph 3, the Parties must inform in writing each
     other of any modifications concerning electrical components and raw
     materials as defined in the Seller supplied Project Parts Lists. The
     parties are under obligation to verify that the information

<PAGE>

NOKIA
                                                QUALITY REQUIREMENTS        6(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL

     provided is unambiguous and, in case ambiguities exist, to contact the
     other party without delay in order to straighten them out. If required, a
     sample must be submitted for approval.

11  NO PREJUDICE

     Neither the presence of Buyer and Nokia's representatives nor any express
     or implied acceptance of e.g. work, materials, components, equipment or
     method of manufacturing nor the fact that the Buyer and Nokia or their
     representatives have not brought any defect or deficiency to the attention
     of the Seller or his representatives shall relieve Seller from its
     obligations under this Document to perform according to and to meet all
     requirements set out in this Document or prejudice any warranty of the
     Seller under this Document.

12 SECRECY

     To the extent applicable laws so prescribe and collective bargaining
     agreements so permit Buyer and Nokia will treat as secret all information
     about Seller's or his subcontractor's production.

13 BUSINESS SECRETS

     Both parties respect each other's business secrets and will not disclose
     the information received to any third party.

14 QUALITY METRICS

     The purpose of quality metrics and reports is to evaluate the effectiveness
     of key processes during manufacturing, delivery and maintenance phases of
     MMIC-modules. The key process targets are regularly checked and the
     corrective actions defined in the case of process deviations.
     Quality metrics of competition sensitive data shall be available for review
     but not delivered in written forms.

<PAGE>

NOKIA
                                                QUALITY REQUIREMENTS        7(7)
Cellular Transmission                            APPENDIX 3
                                                  3/5/98

                                                                    CONFIDENTIAL
<TABLE>
<CAPTION>

-------------------- --------------------- -------------------------------------------- -----------
PROCESS PHASE        METRICS               DESCRIPTION                                  TARGET
-------------------- --------------------- -------------------------------------------- -----------
<S>                  <C>                   <C>                                          <C>
MANUFACTURING        SPC VALUES            TO BE AGREED                                 TBD
PHASE
-------------------- --------------------- -------------------------------------------- -----------
MANUFACTURING        [*]                   [*]                                          TRW
PHASE                                                                                    and
                                                                                        Supplier
                                                                                        Mutually
                                                                                        Agreed
                                                                                        Targets
                                                                                        TBD
                                           [*]
-------------------- --------------------- -------------------------------------------- -----------
MANUFACTURING        [*]                   [*]                                          TBD
PHASE
                                           [*]                                          TBD

                                           [*]                                          [*]
                                                                                        TBD
-------------------- --------------------- -------------------------------------------- -----------
DELIVERY PHASE       [*]                   [*]                                          [*]

                                           [*]
-------------------- --------------------- -------------------------------------------- -----------
                     [*]                   [*]                                          [*]

                                           [*]
-------------------- --------------------- -------------------------------------------- -----------
OPERATION AND        [*]                   [*]                                          [*]FITs
MAINTENANCE
-------------------- --------------------- -------------------------------------------- -----------
                     [*]                   [*]                                          One
                                                                                        Month
-------------------- --------------------- -------------------------------------------- -----------
                     [*]                   [*]                                          TBD

                                           [*]
-------------------- --------------------- -------------------------------------------- -----------
</TABLE>

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

<PAGE>
NOKIA

                                                     REPORT            1(23)
Radio Access Systems(RAS)                            MWU Specifications
System Development (SD)                              15.02.1999 Mko
Markku Koivisto                                      Confidential

<PAGE>

                                   APPENDIX 4

                                 OPERATING MODEL

<PAGE>
                                                                               1

Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

                    OPERATING MODEL BETWEEN CT AND SUPPLIER

INTRODUCTION

The Operating Model between the CT plant and the suppliers describes the main
operating principles between CT and suppliers, subcontractors and vendors. It is
a logistics appendix to the purchasing contracts. All logistics principles can
be developed, taught and updated more systematically with the help of this
document between CT and suppliers.

The cursive text in the operating model will be updated in the purchasing
agreement negotiations and the right parts of the operating model will be chosen
by the SUPPLIER and the BUYER. The operating model will be used in purchases
relating to Cellular Transmission. In case of any discrepancies between the
Operating model and the text of Purchasing agreement or its other appendixes,
the terms of the Operating model shall always prevail.

1.       FORECASTING

1.1.1    VARIABLE

                  The SUPPLIER must always have the capacity to deliver based on
                  previously informed maximum capacity. The following
                  flexibilities are in use between the BUYER and the SUPPLIER.
                  The BUYER has also some flexibility with the customers.

                  The BUYER AND NOKIA will forecast the need for the different
                  variables also for longer period than 20 weeks, but a
                  commitment to the demand is given for 2 weeks. After that the
                  next 2 weeks the BUYER has the right to change the variables
                  +/-50%.

                  MIX:

                  0-2 weeks: Mix is fixed         = commitment by the BUYER
                  3-4 weeks: +/-50% flexibility for
                             weekly forecast      = 50% commitment by the BUYER.
                  Week 5>:   Unfixed mix          = no commitment by the BUYER

                  VOLUME:

                  0-2 weeks: Volume is fixed      = commitment by the BUYER
                  3-4 weeks: +/-50% flexibility
                  in weekly volumes               = 50% commitment by the BUYER.

                  NOTE!      The BUYER AND NOKIA ARE allowed to increase up
                             to the maximum capacity from the 3rd week onwards.
                             i.e. the SUPPLIER needs to always have flexibility
                             E. Exact delivery dates and quantities are known
                             only after the weekly order.

<PAGE>
                                                                               2

Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

         The BUYER specific components are listed here:

                  Description    Part #

        [*] GHz      [*]          [*]

        [*] GHz      [*]          [*]

        [*] GHz      [*]          [*]

        [*] GHz      [*]          [*]

[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.
<PAGE>
                                                                               3

Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

                  The BUYER will commit to buffer stock of these components up
                  to 2 weeks 100% according to the forecast plus 6 weeks
                  according to the agreed maximum capacity.

                  SENDING THE ROLLING FORECAST

                  The BUYER AND/OR NOKIA will send the forecast bi-weekly for
                  following 6 months and monthly update the forecast for
                  following 12 months.

                  CONFIRMATION OF THE ROLLING FORECAST

                  The SUPPLIER will confirm to Buyer and Nokia the forecast sent
                  by the BUYER AND/OR NOKIA within max. 5 working days.

                  MAXIMUM CAPACITY

                  Maximum capacity and buffer stock levels will be agreed in the
                  yearly contract negotiation and will be reviewed and agreed if
                  needed in the monthly management meetings to remain in
                  alignment relative to the Rolling Forecast and the general
                  business outlook.

2.       ORDERING

         2.1      EDI               (LONG TERM DEVELOPMENT)

                  Official orders are made automatically. If the serial number
                  label is used and the information is generated by NOKIA'S MRP
                  II system and delivered to the SUPPLIER. The SUPPLIER is
                  responsible for sticking the BUYER's AND/OR NOKIA'S serial
                  number labels onto the unit. The information on the serial
                  number label and in the unit's flash memory has to be same.

         2.2      PURCHASE ORDER BY FAX

                  A purchase order is based on NOKIA'S MRP II system and
                  delivered to the SUPPLIER after the Purchase Order creation.
                  The BUYER OR BUYER'S DESIGNEE, NOKIA, will send the order
                  documentation by fax 5 working days before scheduled delivery
                  week. The BUYER's aim is to send (or have sent by Nokia) the
                  fax on Monday by 4 p.m. Helsinki time. The SUPPLIER shall
                  confirm the order within 1 working day. If the BUYER has not
                  received the confirmation within the agreed time, the BUYER
                  AND NOKIA shall consider the order confirmed. The SUPPLIER is
                  responsible for sticking the BUYER's AND/OR NOKIA'S serial
                  number onto the unit if asked by the BUYER OR BUYER'S
                  DESIGNEE, NOKIA.

3.       DELIVERY

         3.1      VARIABLE

                  The following requirements need to be ensured:

                  -Minimum lead-time for the weekly order is 5 working days

<PAGE>
                                                                               4

Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

                  -Orders are made once a week on Monday by 4 p.m. Helsinki time

                  -Delivery dates according to the order.

                  -Delivery from the Emergency Stock within 24 hours

4.       INSPECTION

         4.1      Inspection

                  The SUPPLIER is responsible for 100% quality. Both functional
                  and visual inspection will be made by the SUPPLIER. The BUYER
                  AND/OR NOKIA may do a functional and visual inspection if
                  needed. The BUYER AND/OR NOKIA will arrange the quality
                  training if needed.

                  The BUYER AND/OR NOKIA is also allowed to audit both the
                  visual and electrical inspection performed by the SUPPLIER.

                  The electrical tests and visual inspections are made according
                  to Appendix 2 Specifications and Appendix 3 Quality
                  Requirements.

5.       INVOICING

                  An invoice has to be created for each delivery, but it is also
                  possible to collect invoices and send them to the BUYER
                  afterwards. The invoice has to include at the very least THE
                  following information:

                  - Invoicing address:

                           -TRW SPACE & ELECTRONICS GROUP, ACCOUNTS PAYABLE,
                            ------------------------------------------------
                            P.O. BOX 922, EL SEGUNDO, CALIFORNIA 90245
                            -----------------------------------------

                  -NOKIA TRW purchase order number and purchaser.

                  -Terms of payment (currency).

                  -Bankers:

                         -Name of bank.
                         -Account number.

                  -Suppliers contact information.

                  -Delivery or shipment day.

                  -Country of origin and dispatch:

<PAGE>
                                                                               5

Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

                  -Mention whether the goods are in free circulation within the
                   EU countries or not.

                  -Description of goods:

                     -General product identification
                     -Suppliers type
                     -NTC-code

                  -Invoicing currency and it's international abbreviation

                  -VAT-code:

                     -For example Finland FI01011203, Sweden SE516401891201 and
                      Germany DE812035381.

                  -The SUPPLIER has their own customer number for every Nokia
                   site.

                  -Barcode if available

                  -Shipment details

                     -Net and gross weight.
                     -Dimensions of each package.
                     -Number of packages.

                  -Terms of delivery by Incoterms 1990.

                  -Number of waybill.

                  -Forwarder and it's representative in country of departure.

                  -Customs tariff code.

                  -Delivery note number.

         5.1      RESERVED

                  Netting is recommended for use with foreign suppliers. Below
                  is a general description about netting.

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6.       SYSTEM IMPROVEMENT

                  The target of this chapter is to achieve cost efficiency from
                  both sides -the BUYER and the SUPPLIER. The targets for the
                  following issues are clarified in other chapters of this
                  document. However even tighter targets in the long run will be
                  set at least for delivery accuracy, delivery time/call off
                  time and product price. Those targets will be set after the
                  realization of the present targets has been monitored. Each
                  target will be set case by case.

                                                                  6/2000

                  Delivery accuracy                               xx

                  Call off lead-time                              xx

                  Quality                                         xx

                  Price                                           xx

                  Failure reports and                             xx
                   corrective actions

                  Fixed period                                    xx

                  THIS TABLE WILL BE UPDATED 6 MONTHS AFTER THE START OF THE
                  VOLUME PRODUCTION

7.       FORWARDING AND TRANSPORTATION METHODS

                  Transportation and responsibility according to the terms of
                  delivery. The BUYER AND/OR NOKIA will define the forwarding
                  agents and transportation method in the weekly orders.

8.       COMMON MEASUREMENTS

         8.1      Measured by the BUYER AND/OR NOKIA

                  The BUYER AND/OR NOKIA will do the following measurements ONCE
                  A MONTH:

              1.  DELIVERY ACCURACY (DA)

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                  -Time period is +/- 3 days.

                  Formula:

                  =(received of promised PO's in a time period/promised PO's in
                   a time period) *100

              2.  DELIVERY COMPLETENESS

-        Time period is +/- 3 days.

                  Formula:

                  =(quantity of delivered items in a time period/total quantity
                  of ordered or called off items) * 100

              3.  CUSTOMER SATISFACTION

                  The customer satisfaction chart gives a rating for the
                  following areas with a maximum mark of 20 for each (max. 100
                  in total, the target is 95):

                  -Early warning of technical changes

                  -Early warning of non-deliveries

                  -Quick response to changed demands

                  -Quick response to inquiries

                  -Quick response to corrective actions

                  The scoring system for this chart is as follows:

                  -0 - 5 marks for a poor performance

                  -6 - 10 marks for a fair performance

                  -11 - 14 marks for a satisfactory performance

                  -15 - 18 marks for a good performance

                  -19 - 20 marks for an excellent performance

              4.  RECEIVED AND REJECTED MATERIAL

                  In the received and rejected material chart. There are
                  reported received material in FIM and rejected material in %
                  (pcs).

         8.2      Measured by the SUPPLIER

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              To be required from the SUPPLIER in the future:

              1.  DELIVERY ACCURACY (DA)

                  -Time period is +/- 1 day.

                  Formula:

                  =(shipped items of promised PO's in a time period/promised
                  PO's in a time period) *100

              2.  DELIVERY COMPLETENESS

                  -Time period is +/- 1 day.

                  Formula:

                  =(quantity of delivered items in a time period/total quantity
                  of ordered or called off items *100

              3.  BUFFER LEVELS

                  The SUPPLIER delivers information of agreed buffer items to
                  the BUYER AND NOKIA ONCE A MONTH.

9.       PACKING

         9.1      MWU shipping package requirements

                  MWU shipping package have to fulfill following requirements:

                  The whole package have to be 100% antistatic including packing
                  tape and extra filling.

                  The packing material should be recyclable (Material and needed
                  markings from manufacturer).

                  The package must have ESD-warning notices.

                  Single unit packing, double packing as an option (MWU's for
                  one radio hop in the same package).

                  Package note including the correct serial numbers of the
                  units.

                  Package markings according "LABEL SPECIFICATION FOR PACKAGES"
                  NESS 099B60.

                  The boxes should be strong enough to remain undamaged during
                  the transportation. The boxes should be flat on all sides.

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                  The markings on the top of each shipment unit should include
                  at least:

                  -Dispatcher and address

                  -Receiver and address

                  IF THE PACKAGING DOES NOT MEET THESE REQUIEMENTS A CLAIM WILL
                  BE LODGED AGAINST THE SUPPLIER.

                  THE GOODS should be packed in boxes of maximum dimensions:

                  Height                    22 cm

                  Width                     45 cm

                  Length                    50 cm

                  Maximum weight            20 kg

         9.2      Packing List

                  Packing list should include the following labeling:

                  1. SUPPLIER's name and mailing address

                  2. NOKIA'S name and address

                    o Delivery address

                    o Mailing -and invoicing address

                    o If needed precise location (for example production line or
                      warehouse)

                  3. Nokia purchasing order number (in written and barcode form)

                  4. Nokia's order position (in written and barcode form)

                  5. Identification information for the goods

                    o  Nokia type

                    o  Nokia code (in written and barcode form)

                    o  Manufacturer type

                  6. Item quantity (in written and barcode form)

                  7. Quantity of packages

                  8. Terms of delivery (Incoterms 1990)

<PAGE>
                                                                              10

                  9. Date of consignment

                  10.Production date or other traceability code (in written and
                     barcode form)

                  11.Packing list number (in written and barcode form)

                  NOTE!

                  -The lowest level of package should contain only one Nokia
                  code.

         9.3      Waybill

                  Waybill should contain waybill number in written, barcode form
                  and all other necessary information.

         9.4      Identification of MWU

                  9.4.1    Identification in electrical formal

                           -Nokia code

                           -Serial number including manufacturing date
                            (week/year)

                           -Manufacturing date (week/year) of chip

                           -Unit version/stepping

                           -Frequency band Rx/Tx

                           -Calibration data

                  9.4.2    Identification in printed format

                           -Text format:

                           -Nokia code

                           -Serial number including manufacturing date
                            (week/year) (height 5mm)

                           -Frequency, for example "38 GHz"  (height 10mm)

                           -Frequency band, for example:

                                 Rx/Tx=37058-37338/38318-38598 MHz  (height 5mm)

                           -Unit version/stepping  (height 5mm)

<PAGE>
                                                                              11
Cellular Transmission                                    Operating model between
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                           -Barcode format according to NESS 099B60

10.      RETURN AND REJECTED MATERIALS

         10.1     Return and rejected materials

                  In the case of defective products, the SUPPLIER is responsible
                  for taking the necessary action to avoid more damage. This and
                  the explanation of actions to be taken have to be made within
                  [*] from the reclamation. Within [*] the SUPPLIER has to ship,
                  based on the delivery terms DDU NOKIA'S premises, new products
                  which will replace the defective ones. The BUYER AND/OR NOKIA
                  will return defective products based on the delivery term Ex
                  works at BUYER's AND/OR NOKIA'S premises. SUPPLIER shall
                  inform the BUYER AND NOKIA the SUPPLIER's forwarding agent
                  (e.g. UPS) and the customer number. The BUYER AND NOKIA shall
                  inform the SUPPLIER the awb number, the date of the return
                  shipment and the copy of the proforma invoice by fax. The
                  SUPPLIER shall send a credit note for defective products or
                  return the units[*].

                  The SUPPLIER has to provide a failure analyses report of the
                  returned products.

[GRAPHIC]

11.      CONTACT PERSONS

         THE BUYER                         RESPONSIBLE        TEL.
         ---------                         -----------        ----
         ALL ISSUES                        MAUREEN MILLER     +310.813.7701

         NOKIA

                - Production issues        Asko Remes         +358 9 51127752
                - Technical issues         Hans Somerma       +358 9 51127735
                - Quality control          Asko Remes         +358 9 51127752
                - Commercial issues        Merja Leinonen     +358 9 51127298

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

<PAGE>
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         The SUPPLIER

                - Production issues        Mike Roush         +530 6425934
                - Technical issues         Duncan Smith
                - Quality control          John Esqurra       +530 6425442
                - Commercial issues        Peggy Willis       +530 6425406

12.      VOLUME INCREASE

                  The SUPPLIER has to clarify what equipment investment and
                  personnel training is needed in each capacity step and how
                  long it takes.

                  Total maximum production capacity will be given by the BUYER
                  and Nokia.

                  INVESTMENT STEP 01

                  EQUIPMENT INVESTMENTS

                  WHAT EQUIPMENTS ARE NEEDED TO INCREASE VOLUME FROM 0 TO 01?
                  WHAT IS THE DELIVERY AND IMPLEMENTATION TIME?

                  PERSONNEL TRAINING

                  HOW MANY PERSONS MORE ARE NEEDED? HOW LONG RECRUITMENT AND
                  TRAINING WILL TAKE?

                  SPACE

                  IS THERE ENOUGH SPACE TO REACH 01 LEVEL CAPACITY? HOW LONG
                  SPACE INCREASING WILL TAKE?

                  INVESTMENT STEP 02

                  EQUIPMENT INVESTMENTS

                  WHAT EQUIPMENTS ARE NEEDED TO INCREASE VOLUME FROM 01 TO 02?
                  WHAT IS THE DELIVERY AND IMPLEMENTATION TIME?

                  PERSONNEL TRAINING

                  HOW MANY PERSONS MORE ARE NEEDED? HOW LONG RECRUITMENT AND
                  TRAINING WILL TAKE?

                  SPACE

                  IS THERE ENOUGH SPACE TO REACH 02 LEVEL CAPACITY? HOW LONG
                  SPACE INCREASING WILL TAKE?

                  INVESTMENT STEP 03

                  EQUIMENT INVESTMENTS

<PAGE>
                                                                              13
Cellular Transmission                                    Operating model between
                                                         CT and SUPPLIER

                  WHAT EQUIPMENTS ARE NEEDED TO INCREASE VOLUME FOR 02 TO 03?
                  WHAT IS THE DELIVERY AND IMPLEMENTATION TIME?

                  PERSONNEL TRAINING

                  HOW MANY PERSONS MORE ARE NEEDED? HOW LONG RECRUITMENT AND
                  TRAINING WILL TAKE?

                  SPACE

                  IS THERE ENOUGH SPACE TO REACH 03 LEVEL CAPACITY? HOW LONG
                  SPACE INCREASING WILL TAKE?

                  ETC.

                  THE INVESTMENT STEPS WILL BE UPDATED LATEST 6 MONTHS AFTER THE
                  PRODUCTION STARTS.

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