Document:

THIS  DEBENTURE  HAS BEEN ACQUIRED FOR  INVESTMENT  PURPOSES ONLY AND MAY NOT BE
TRANSFERRED UNTIL (I) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") SHALL HAVE BECOME  EFFECTIVE WITH RESPECT THERETO OR (II)
RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO THE
COMPANY  TO THE  EFFECT  THAT  REGISTRATION  UNDER  THE ACT IS NOT  REQUIRED  IN
CONNECTION  WITH SUCH  PROPOSED  TRANSFER NOR IS IN VIOLATION OF ANY  APPLICABLE
STATE  SECURITIES  LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY DEBENTURE ISSUED
IN EXCHANGE FOR THIS DEBENTURE.

                        DIMENSIONAL VISIONS INCORPORATED

                            12% Convertible Debenture

$_______________                                             Date: _____________

     FOR  VALUE  RECEIVED,   Dimensional   Visions   Incorporated,   a  Delaware
corporation  (the  "Company") with its principal  executive  office at 2301 West
Dunlap Avenue, Suite 207, Phoenix,  Arizona 85021,  promises to pay to the order
of _______________________,  ____________________, ____________________, _______
_______ (the "Payee" or the "Holder of this Debenture") or registered assigns on
or  before   ______________   (the  "Maturity  Date"),   the  principal  sum  of
_______________ Dollars ($___________) (the "Principal Amount"), in such coin or
currency  of the United  States of  America  as at the time of payment  shall be
legal tender for the payment of public and private debts, together with interest
thereon  at the rate of twelve  (12%)  percent  per annum (the  "Stated  Rate"),
payable as hereinafter set forth in cash, or at the option of the Holder of this
Debenture,  in the  Company's  Common  Stock as  provided  in  Section 4 hereof.
Payment  of the  Principal  Amount  and  interest  shall be made at the  address
designated  above or at such other  place as the Payee shall have  notified  the
Company in writing at least five (5) days before such payment is due.

     Payment by the Company  pursuant to this  Debenture  shall be made  without
setoff or counterclaim and in immediately available funds.

     The  amount of all  repayments  of  principal,  interest  rates  applicable
thereto and  interest  accrued  thereon  shall be recorded on the records of the
Payee and,  prior to any transfer of, or any action to collect,  this  Debenture
shall be endorsed on this Debenture.  Any such recordation or endorsement  shall
constitute  prima facie evidence of the accuracy of the  information so recorded
or  endorsed,  but the failure to record any such amount or rate shall not limit
or otherwise affect the obligations of the Company hereunder to make payments of
principal or interest when due. All payments by the Company  hereunder  shall be
applied first to pay any interest which is due, but unpaid ("Accrued Interest"),
then to reduce the Principal Amount.

     The Company (i) waives presentment,  demand, protest, or notice of any kind
in connection  with this Debenture and (ii) agrees,  in the event of an Event of
Default  (as  defined  in  Section  2  hereof),  to pay to the  Holder  of  this
Debenture,  on demand, all costs and expenses (including  reasonable legal fees)
incurred in connection with the enforcement and collection of this Debenture. If
the date for any payment due hereunder  would  otherwise  fall on a day which is
not a Business  Day,  such payment or  expiration  date shall be extended to the
next  following  Business  Day with  interest  payable  at the  applicable  rate
specified herein during such extension.  "Business Day" shall mean any day other
than a  Saturday,  Sunday,  or any day which  shall be in the State of Arizona a
legal holiday or a day on which banking  institutions  are  authorized by law to
close.
<PAGE>
     In the event  that for any  reason  the  Company  shall  fail to pay to the
Holder of this  Debenture  when due all or any  portion  of the  unpaid  Accrued
Interest or Principal  Amount of this  Debenture,  interest  shall accrue and be
payable on such due but unpaid amounts at a rate per annum (the "Default  Rate")
equal to the Stated Rate plus three  percent  (3%) (but in no event  higher than
the  maximum  rate  permitted  by law)  from the date  when  first due until and
including the date when actually  collected by the Holder of this  Debenture but
in no event later than ___________________.

     In consideration for the loan evidenced by this Debenture the Company shall
issue to the Holders of this Debenture  warrants to purchase  ___________ shares
of the Company's  common stock,  at an exercise  price of ________  ($_____) per
share (subject to adjustment) (the "Warrant").

     1. CONVERSION OF DEBENTURE.

          A. CONVERSION.  This Debenture is convertible, in whole or in part, at
the option of the Holder,  into shares of the Company's  common stock, par value
$.001 (the "Common  Stock") at any time prior to the repayment of this Debenture
at the rate of One Dollar ($1.00) per share (the "Conversion  Price") (i.e., one
share of Common Stock for each One Dollar ($1.00) of principal amount converted)
subject to adjustment as hereinafter provided.

          B.  ADJUSTMENT  BASED UPON STOCK  DIVIDENDS,  COMBINATION OF SHARES OR
RECAPITALIZATION.  In the  event  that the  Company  shall at any time (i) pay a
stock  dividend,  (ii) subdivide its  outstanding  shares of Common Stock into a
greater number of shares,  (iii) combine its outstanding  shares of Common Stock
into a smaller number of shares, or (iv) issue by reclassification of its shares
of Common Stock any other special capital stock of the Company, the Holder, upon
surrender of this  Debenture  for  conversion,  shall be entitled to receive the
number of shares of Common Stock or other  capital stock of the Company which he
would have owned or have been  entitled to receive after the happening of any of
the events described above had this Debenture been converted  immediately  prior
to the happening of such event.

          C.  ADJUSTMENT  BASED  UPON  MERGER OR  CONSOLIDATION.  In case of any
consolidation  or merger to which the Company is a party (other than a merger in
which the  Company  is the  surviving  entity  and which  does not result in any
reclassification  of or change in the outstanding  Common Stock of the Company),
or in case of any sale or conveyance to another  corporation  of the property of
the Company as an entirety or  substantially  as an  entirety,  the Holder shall
have the right to convert this  Debenture into the kind and amount of securities
and property receivable upon such consolidation, merger, sale or conveyance by a
holder of the number of shares of Common Stock into which such  Debenture  might
have been converted immediately prior thereto.

          D. EXERCISE OF CONVERSION PRIVILEGE. The conversion privilege provided
for  herein  shall be  exercisable  in whole or in part by the Holder by written
notice to the Company and the surrender of this  Debenture in exchange for up to
the number of shares of Common Stock into which this  Debenture  is  convertible
based upon the Conversion  Price.  If the entire amount of this Debenture is not
so exercised, the Company shall issue a new Debenture representing the remaining
outstanding Principal Amount.

          E.  CORPORATE  STATUS  OF  SHARES  TO BE  ISSUED.  All  shares  of the
Company's Common Stock which may be issued upon the conversion of this Debenture
shall, upon issuance, be fully paid and non-assessable.

                                       2
<PAGE>
          F.  ISSUANCE  OF  STOCK  CERTIFICATE.  Upon  the  conversion  of  this
Debenture,  the Company shall in due course issue to the Holder a certificate or
certificates  representing the number of shares of its Common Stock to which the
conversion relates.

          G. Stamp Taxes,  etc. The Company shall pay all documentary,  stamp or
other transactional taxes attributable to the issuance or delivery of the Common
Stock upon conversion of this  Debenture;  provided,  however,  that the Company
shall not be  required  to pay any taxes  which may be payable in respect of any
transfer involved in the issuance or delivery of any certificate for such Common
Stock in a name other than that of the Holder of this  Debenture and the Company
shall not be required to issue or deliver any such certificate  unless and until
the person  requesting  the issuance  thereof shall have paid to the Company the
amount of such tax or shall have established to the Company's  satisfaction that
such tax has been paid.

          2. EVENTS OF DEFAULT

          A. The term "Event of Default"  shall mean any of the events set forth
in this

SECTION 2A:
               (a) NON-PAYMENT OF OBLIGATIONS.  The Company shall default in the
payment of the principal or accrued  interest of this  Debenture as and when the
same  shall  become  due  and  payable,   including  the  aforementioned  90-day
extension, whether by acceleration or otherwise.

               (b) BANKRUPTCY, INSOLVENCY, ETC. The Company shall:

                    (i) become  insolvent or generally fail or be unable to pay,
               or admit in  writing  its  inability  to pay,  its  debts as they
               become due;

                    (ii) apply for,  consent to, o acquiesce in, the appointment
               of a trustee,  receiver,  sequestrator or other custodian for the
               Company or any of its property,  or make a general assignment for
               the benefit of creditors;

                    (iii)  in  the  absence  of  such  application,  consent  or
               acquiesce  in,  permit or suffer  to exist the  appointment  of a
               trustee,  receiver,  sequestrator  or  other  custodian  for  the
               Company or for any part of its property;

                    (iv)  permit  or suffer  to exist  the  commencement  of any
               bankruptcy,  reorganization,  debt  arrangement  or other case or
               proceeding  under  any  bankruptcy  or  insolvency  law,  or  any
               dissolution,  winding up or liquidation proceeding, in respect of
               the Company,  and, if such case or proceeding is not commenced by
               the  Company  or  converted  to a  voluntary  case,  such case or
               proceeding  shall be consented to or acquiesced in by the Company
               or shall result in the entry of an order for relief; or

                    (v) take any  corporate or other action  authorizing,  or in
               furtherance of, any of the foregoing.

               (c)  JUDGMENTS.  A judgment  which,  with other such  outstanding
judgments  against the Company and its  subsidiaries (in each case to the extent
not  covered  by  insurance),  exceeds  an  aggregate  of One  Hundred  Thousand
Dollars($100,000),  shall be rendered against the Company or any subsidiary and,
within fifteen (15) days after entry thereof,  such judgment shall not have been

                                       3
<PAGE>
discharged or execution  thereof stayed pending appeal,  or, within fifteen (15)
days after the  expiration of any such stay,  such judgment  shall not have been
discharged.

          B. ACTION IF BANKRUPTCY.  If any Event of Default described in clauses
(b)(i) through (v) of Section 2A shall occur,  the outstanding  principal amount
of this Debenture and all other obligations hereunder shall automatically be and
become immediately due and payable, without notice or demand.

          C. ACTION IF OTHER EVENT OF  DEFAULT.  If any Event of Default  (other
than any Event of Default described in clauses (b)(i) through (v) of Section 2A)
shall occur for any reason, whether voluntary or involuntary, and be continuing,
the Holder of this Debenture may, upon notice to the Company, declare all or any
portion of the  outstanding  principal  amount of this  Debenture  together with
interest accrued thereon to be due and payable and any or all other  obligations
hereunder  to be due and payable,  whereupon  the full unpaid  principal  amount
hereof,  such accrued  interest,  and any and all other such  obligations  which
shall be so declared  due and payable  shall be and become  immediately  due and
payable, without further notice, demand, or presentment.

          D. REMEDIES. Subject to the provisions of Section 2C and 3A hereof, in
case any Event of  Default  shall  occur and be  continuing,  the Holder of this
Debenture may proceed to protect and enforce its rights by a proceeding  seeking
the  specific  performance  of any  covenant  or  agreement  contained  in  this
Debenture  or the  Security  Agreement,  or in aid of the  exercise of any power
granted  in this  Debenture  or may  proceed  to  enforce  the  payment  of this
Debenture or to enforce any other legal or equitable rights as such Holder.

     3. AMENDMENTS AND WAIVERS.

          A. WAIVERS, AMENDMENTS, ETC.

               (a) The  provisions  of this  Debenture  may from time to time be
amended,  modified or waived, if such amendment,  modification,  or waiver is in
writing and  consented to by the Company and the holders of not less than 50% in
principal amount of the Debentures (the "Required Holders");  provided, however,
that no such amendment, modification or waiver:

                    (i)  which  would  modify  this   Section  3A,   change  the
               definition of "Required  Holders",  extend the Maturity  Date, or
               subject  the  Payee  under  each   Debenture  to  any  additional
               obligations  shall be made  without  the  consent of the Payee of
               each Debenture, or

                    (ii)  which  would  reduce  the  amount  of any  payment  or
               prepayment  of principal of or interest on any  principal  amount
               payable  hereunder (or reduce the principal  amount of or rate of
               interest payable  hereunder) shall be made without the consent of
               the Holder of each Debenture so affected.

               (b) No  failure  or delay on the part of the Payee in  exercising
any power or right under this Debenture  shall not operate as a waiver  thereof,
nor shall any single or partial exercise of any such power or right preclude any
other or further  exercise  thereof or the exercise of any other power or right.
No notice to or demand on the Company in any case shall entitle it to any notice
or demand in similar or other circumstances.  No waiver or approval by the Payee
shall,  except  as may be  otherwise  stated  in such  waiver  or  approval,  be
applicable to subsequent  transactions.  No waiver or approval  hereunder  shall
require any similar or  dissimilar  waiver or approval  thereafter to be granted
hereunder.

                                       4
<PAGE>
               (c) To the extent that the Compan  makes a payment or payments to
the Payee, and such payment or payments or any part thereof are subsequently for
any reason  invalidated,  set aside,  and/or required to be repaid to a trustee,
receiver,  or any other party under any  bankruptcy  law,  state or federal law,
common  law,  or  equitable  cause,  then to the  extent of such  recovery,  the
obligation or part thereof originally  intended to be satisfied,  and all rights
and remedies  therefor,  shall be revived and continued in full force and effect
as if such  payment  had not been made or such  enforcement  or  setoff  had not
occurred.

               (d) After any waiver, amendment, or supplement under this section
becomes  effective,  the Company  shall mail to the Holders of the  Debentures a
copy thereof.

     4. COMMON STOCK IN LIEU OF INTEREST.

                  At the sole discretion of the Holder,  the Holder may elect to
receive one share of Common  Stock for each one dollar of interest due to Holder
on any Interest Payment Date (i.e., Common Stock at the rate of $1.00 per share)
partially  or entirely in lieu of cash payment of  interest,  by  notifying  the
Company of its election to receive the Common Stock at least five (5) days prior
to any  Interest  Payment  Date.  The number of shares of Common Stock so issued
shall be subject to adjustment in accordance with Section 1B and 1C hereof.

     5. MISCELLANEOUS.

          A. PARTIES IN INTEREST. All covenants, agreements, and undertakings in
this Debenture binding upon the Company or the Payee shall bind and inure to the
benefit of the  successors  and permitted  assigns of the Company and the Payee,
respectively, whether so expressed or not.

               (a)  Registered  Holder.  The Company may  consider and treat the
person in whose name this  Debenture  shall be registered as the absolute  owner
thereof for all  purposes  whatsoever  (whether or not this  Debenture  shall be
overdue) and the Company shall not be affected by any notice to the contrary. In
case of transfer of this Debenture by operation of law, the transferee agrees to
notify  the  Company  of  such  transfer  and of  its  address,  and  to  submit
appropriate  evidence  regarding  such  transfer so that this  Debenture  may be
registered in the name of the transferee. This Debenture is transferable only on
the books of the Company by the Holder hereof, in person or by attorney,  on the
surrender  hereof,  duly endorsed.  Communications  sent to any registered owner
shall be effective as against all Holders or  transferees  of the  Debenture not
registered at the time of sending the communication.

          B. Governing Law. This Debenture shall be governed by and construed in
accordance with the laws of the State of Delaware without regard to any conflict
provisions therein.

          C.  Notices.  Unless  otherwise  provided,  all  notices  required  or
permitted  under  this  Debenture  shall  be in  writing  and  shall  be  deemed
effectively given (i) upon personal  delivery to the party to be notified,  (ii)
upon  confirmed  delivery  by  Federal  Express or other  nationally  recognized
courier  service  providing  next-business-day  delivery,  or  (iii)  three  (3)
business days after deposit with the United States Postal Service, by registered
or certified mail, postage prepaid and addressed to the party to be notified, in
each case at the address set forth below, or at such other address as such party
may  designate  by written  notice to the other party  (provided  that notice of
change of  address  shall be  effective  upon  receipt by the party to whom such
notice is addressed).

                                       5
<PAGE>
     If sent to Payee, notices shall be sent to the following address:

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

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

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

     If sent to the Company, notices shall be sent to the following address:

          Dimensional Visions Incorporated
          2301 West Dunlap Avenue
          Suite 207
          Phoenix, Arizona  85201
          John D. McPhilimy, President

          D. WAIVER OF JURY TRIAL.  THE PAYEE AND THE COMPANY HEREBY  KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY  WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY  LITIGATION  BASED  HEREON,  OR ARISING OUT OF,  UNDER,  OR IN
CONNECTION WITH, THIS DEBENTURE OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED AND
DELIVERED IN CONNECTION HEREWITH,  OR ANY COURSE OF CONDUCT,  COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN),  OR ACTIONS OF THE PAYEE OR THE COMPANY.
THIS  PROVISION  IS A  MATERIAL  INDUCEMENT  FOR THE  PAYEE'S  EXTENDING  CREDIT
PURSUANT TO THIS DEBENTURE.

     IN WITNESS  WHEREOF,  this Debenture has been executed and delivered on the
date specified above by the duly authorized representative of the Company.

                                        DIMENSIONAL VISIONS INCORPORATED

                                        By:
                                           -------------------------------------
                                           John D. McPhilimy
                                           President

                                        6<PAGE>   1
                                                                    EXHIBIT 10.1

                           ACCELERATED NETWORKS, INC.

                     FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT

               This Agreement is made this 28th day of March, 1997, by and
between Accelerated Networks, Inc., a California corporation (the "Company"),
and Suresh Nihalani ("Purchaser").

               NOW THEREFORE, IT IS HEREBY AGREED:

               1. Sale of Stock. Subject to the terms hereof, the Company shall
sell to Purchaser and Purchaser shall purchase from the Company, Seven Million,
Seven Hundred Fifty Thousand (7,750,000) shares of common stock of the Company
(the "Stock") at a price of $.001 per share ("Purchase Price").

               2. Payment of Purchase Price. Purchaser has previously paid the
Purchase Price by delivering to the Company a check for Seven Thousand Seven
Hundred Fifty ($7,750).

               3. Issuance of Shares. Upon receipt by the Company of the
Purchase Price, the Company shall issue a duly executed certificate evidencing
the Stock in the name of Purchaser.

               4. Representations and Warranties of Purchaser.

                      a. Investment Intent. This Agreement is made with
Purchaser in reliance upon his representation to the Company, which by
Purchaser's acceptance hereof Purchaser confirms, that the Stock has been
acquired with Purchaser's own funds for investment for an indefinite period for
Purchaser's own account, not as a nominee or agent, and not with a view to the
sale or distribution of any part thereof, and that Purchaser has no present
intention of selling, granting participation in, or otherwise distributing the
same. By executing this Agreement, Purchaser further represents that Purchaser
does not have any contract, undertaking, agreement or arrangement with any
person to sell, transfer, or grant participations, to such person or to any
third person, with respect to any of the Stock.

                      b. Restricted Securities. Purchaser understands that the
Stock has not been registered under the Securities Act of 1934, as amended (the
"Act"), on the ground that the sale provided for in this Agreement is exempt
from the registration requirements of the Act, and that the Company's reliance
on such exemption is predicated on his representations set forth herein.

               Purchaser understands that if the Company does not register with
the Securities and Exchange Commission pursuant to sections 12 or 15 of the
Securities Exchange Act of 1934, as amended, or if a registration statement
covering the Stock (or a filing pursuant to the exemption from registration
under Regulation A of the Act) under the Act is not in effect when

<PAGE>   2
Purchaser desires to sell the Stock, Purchaser may be required to hold the Stock
for an indeterminate period. Purchaser also acknowledges that Purchaser
understands that any sale of the Stock that might be made by Purchaser in
reliance upon Rule 144 under the Act may be made only in limited amounts in
accordance with the terms and conditions of that rule and that Purchaser may not
be able to sell the Stock at the time or in the amount Purchaser so desires.
Purchaser is familiar with Rule 144 and understands that the Stock constitutes
"restricted securities" within the meaning of that Rule.

                      c. Investment Experience. In connection with the
investment representations made herein Purchaser represents that he is able to
fend for himself in the transactions contemplated by this Agreement, has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of his investment, has the ability to bear the
economic risks of his investment and has been furnished with and has had access
to such information as he has requested and deems appropriate to his investment
decision.

                      d. Limitations on Disposition. Purchaser agrees that in no
event will Purchaser make a disposition of any of the Stock, unless and until
(a) Purchaser shall have notified the Company of the proposed disposition and
shall have furnished the Company with a statement of the circumstances
surrounding the proposed disposition, and (b) Purchaser shall have furnished the
Company with an opinion of counsel satisfactory to the Company to the effect
that (i) such disposition will not require registration of such Stock under the
Act, or (ii) that appropriate action necessary for compliance with the Act has
been taken, or (c) the Company shall have waived, expressly and in writing, its
rights under clauses (a) and (b) of this subparagraph. In addition, prior to any
disposition of any of the Stock, the Company may require the transferee or
assignee to provide in writing investment representations in a form acceptable
to the Company.

               The Company shall not be required (i) to transfer on its books
any shares of Stock of the Company which shall have been sold or transferred in
violation of any of the provisions set forth in this Agreement, or (ii) to treat
as owner of such shares or to accord the right to vote as such owner or to pay
dividends to any transferee to whom such shares shall have been so transferred.

                      e. Legends. All certificates representing any shares of
Stock of the Company subject to the provisions of this Agreement shall have
endorsed thereon the following legends:

                           (i) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY
NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES,
OR DELIVERY OF AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF SUCH
SECURITIES THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN FULL
COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, OR

                                       2.

<PAGE>   3
UNLESS SOLD IN COMPLIANCE WITH RULE 144 UNDER SUCH ACT."

                           (ii) Any legend required to be placed thereon by
applicable state laws.

               5. Miscellaneous.

                      a. Further Instruments and Actions. The parties agree to
execute such further instruments and to take such further action as may
reasonably be necessary to carry out the intent of this Agreement.

                      b. Notices. Any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given upon personal
delivery or upon deposit in the United States Post Office, by registered or
certified mail with postage and fees prepaid, addressed to the other party
hereto at the address hereinafter shown below that party's signature or at such
other address as such party may designate by ten (10) days' advance written
notice to the other party hereto.

                      c. Governing Law, Assignment and Enforcement. This
Agreement is governed by the internal law of California and shall inure to the
benefit of the successors and assigns of the Company and, subject to the
restrictions on transfer herein set forth, be binding upon Purchaser, his heirs,
executors, administrators, guardians, successors and assigns. The prevailing
party in any action to enforce this Agreement shall be entitled to attorneys'
fees and costs. The parties agree that damages are not an adequate remedy for
Purchaser's breach hereof and the Company shall accordingly be entitled to
specific performance of this Agreement.

                      d. Amendments and Waivers. This Agreement represents the
entire understanding of the parties with respect to the subject matter hereof
and supersedes all previous understandings, written or oral. This Agreement may
only be amended with the written consent of the parties hereto and the Company's
assignees pursuant to subsection 4(c) hereof, or the successors or assigns of
the foregoing, and no oral waiver or amendment shall be effective under any
circumstances whatsoever.

                      e. Cooperation. Purchaser agrees to cooperate
affirmatively with the Company, to the extent reasonably requested by the
Company, to enforce rights and obligations pursuant to this Agreement.

                                       3.

<PAGE>   4
               6. California Commissioner of Corporations. THE SALE OF THE
SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA, AND THE ISSUANCE OF
SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS THE SALE OF SECURITIES
IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UNLESS THE SALE IS SO EXEMPT.

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

                                       ACCELERATED NETWORKS, INC.

                                       By: /s/ Suresh Nihalani
                                       -------------------------------
                                              Suresh Nihalani
                                              President

                            Address:   5743 Corsa Avenue, Suite 221
                                       Westlake Village, CA 91362

                                       PURCHASER:

                                       /s/ Suresh Nihalani
                                       -------------------------------

                            Address:   c/o Accelerated Networks, Inc.
                                       5743 Corsa Avenue, Suite 221
                                       Westlake Village, CA 91362

                                       4.

<PAGE>   5
                           RESTATED FIRST AMENDMENT TO
                     FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT

        THIS RESTATED FIRST AMENDMENT TO FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT
dated as of May 30, 1997 (the "Amendment") amends that certain Founder/Employee
Shareholder Agreement ("Founder Agreement") by and between Accelerated Networks,
Inc., a California corporation (the "Company"), and Suresh Nihalani
("Purchaser"). This Amendment replaces that certain First Amendment to
Founder/Employee Shareholder Agreement dated as of April 14, 1997 by and between
the Company and Purchaser ("Previous Amendment"), which Previous Amendment shall
be of no further force or effect.

        NOW, THEREFORE, for good and valuable consideration, the receipt,
adequacy and sufficiency of which are hereby acknowledged, the parties hereto
covenant and agree as follows:

               1. Defined Terms. Capitalized terms not otherwise defined in this
Amendment shall have the respective meanings assigned to them in the Founder
Agreement.

               2. References to Founder Agreement. All references in the Founder
Agreement to "this Agreement", and to all other words referring to the Founder
Agreement (such as "herein", "hereto", "herewith" and "hereunder"), shall be
deemed to mean and refer to the Founder Agreement, as amended by this Amendment.

               3. Amendments to Founder Agreement.

                      (a) The definition of "Stock" in the Founder Agreement
shall be deemed to include all shares of Common Stock of the Company owned by
Purchaser on the date hereof.

                      (b) Subsection 5.b shall be deleted in its entirety and
replaced with the following:

                      b. Except as otherwise provided, all notices and other
        communications required or permitted hereunder shall be in writing,
        shall be effective when given, and shall in any event be deemed to be
        given upon receipt or, if earlier, (i) five (5) days after deposit with
        the U.S. postal service or other applicable postal service, if delivered
        by first class mail, postage prepaid, (ii) upon delivery, if delivered
        by hand, (iii) one (1) business day after the day of deposit with
        Federal Express or similar overnight courier, freight prepaid, if
        delivered by overnight courier or (iv) one (1) business day after the
        day of facsimile transmission, if delivered by facsimile transmission
        with copy by first class mail, postage prepaid, and shall be addressed,
        (a) if to Purchaser, at Purchaser's address set forth below its
        signature, or at such other address as Purchaser shall have furnished
        the Company in writing, or (b) if to the Company, at its address as set
        forth below, or at such other address as the Company shall have
        furnished to Purchaser in writing.

                                       5.

<PAGE>   6
                      (c) A new Section 7 and Section 8 shall be added to the
Founder Agreement as follows:

               7. Purchase Option. The Stock shall be subject to the following
       option ("Purchase Option"):

                      a. In the event Purchaser ceases to be continuously
        employed by the Company, or a parent or subsidiary of the Company, as a
        result of Purchaser's Voluntary Termination (as defined below) or
        Termination for Cause (as defined below), the Company may exercise the
        Purchase Option. The date when Purchaser's continuous employment ceases
        as a result of Voluntary Termination or Termination for Cause is
        hereinafter referred to as the "Termination Date."

                      b. Voluntary Termination shall include any voluntary
        cessation of employment with the Company unless such cessation of
        employment occurs within twelve (12) months of any of the following
        actions (unless such action is consummated with Purchaser's written
        approval): (i) a material decrease in the salary paid or benefits
        provided by the Company to Purchaser from the salary paid or benefits
        provided at the time of such decrease, other than a decrease consistent
        with an overall decline in the Company's financial condition or
        prospects and consistent with executive officer salary reductions
        generally, (ii) a material diminution in Purchaser's level of job
        responsibilities or position with the Company, or (iii) the relocation
        of Purchaser's place of employment to a location which is not within
        fifty (50) miles of the Company's current offices or Purchaser's current
        residence. Notwithstanding the foregoing, Voluntary Termination shall
        not include a cessation of employment arising from Purchaser's death or
        Purchaser's inability to perform his duties to the Company by reason of
        any medically determinable physical or mental impairment.

                      c. Termination for Cause shall include only the following:
        (i) theft of the Company's intellectual or other property other than
        unintentional takings of immaterial property, (ii) any other wilful and
        wrongful act not done in good faith by Purchaser causing material harm
        to the reputation of the Company, or (iii) conviction of a felony that
        adversely affects the Company.

                      d. The Company shall have the right at any time within
        sixty (60) days after the Termination Date to purchase the Stock from
        Purchaser at the price per share paid by Purchaser pursuant to this
        Agreement ("Option Price"). Stock subject to the Purchase Option may not
        be transferred by Purchaser (except for transfers by operation of law or
        other involuntary transfers and transfers by gift, will or intestate
        succession of Purchaser to Purchaser's spouse or lineal descendants or
        ancestors or a trust for the benefit of such persons if the transferee
        agrees in writing in a form satisfactory to the Company to be subject to
        the terms of the Founder Agreement). The Purchase Option shall
        terminate, and cease to be exercisable, with respect to any and all
        Stock in which Purchaser acquires a vested interest. For purposes of
        this Agreement, Purchaser shall acquire a

                                       6.

<PAGE>   7
        vested interest in 50% of the Stock immediately. Purchaser shall acquire
        a vested interest in the remaining 50% of the stock in equal monthly
        installments over the 48 months beginning on April 30, 1997, such that
        Purchaser shall have a fully vested interest in all of the Stock on
        April 29, 2001. Notwithstanding the foregoing, Purchaser shall not
        acquire a vested interest in any shares of Stock after the Termination
        Date. Notwithstanding the foregoing, Purchaser shall acquire a vested
        interest in all unvested stock upon consummation of a merger,
        consolidation, tender offer or other transaction or series of
        transactions in which securities possessing more than fifty percent
        (50%) of the total combined voting power of the Company's outstanding
        securities are transferred to a person or persons different from the
        persons holding those securities immediately prior to such transaction,
        or the sale, transfer or other disposition of all or substantially all
        of the Company's assets in complete liquidation or dissolution of the
        Company.

                      e. The Purchase Option, if exercised by the Company, shall
        be exercised by written notice signed by an officer of the Company and
        delivered or mailed as provided in subsection 5.b. The Company may pay
        for the shares of Stock it has elected to repurchase (i) by delivery of
        a check in the amount of the repurchase price for the Stock being
        repurchased, (ii) by cancellation by the Company of an amount of
        Purchaser's indebtedness to the Company or (iii) by a combination of (i)
        and (ii) so that the combined payment and cancellation of indebtedness
        equals such repurchase price.

                      f. Nothing in this Agreement shall affect in any manner
        whatsoever the at will status of Purchaser's employment or the right or
        power of the Company, or a parent or subsidiary of the Company, to
        terminate Purchaser's employment at any time, for any reason, with or
        without cause.

               8. Escrow of Shares.

                      a. Escrow Holder. The Stock issued under this Agreement
        shall be held in escrow by the Secretary of the Company, as escrow
        holder ("Escrow Holder"), along with an Assignment Separate from
        Certificate executed by Purchaser in blank, until expiration of the
        Company's Purchase Option described in Section 7 above.

                      b. Instructions to Escrow Holder. The Escrow Holder is
        hereby directed to permit transfer of the Stock only in accordance with
        this Agreement or instructions signed by both parties. In the event that
        further instructions are desired by the Escrow Holder, he or she shall
        be entitled to rely upon directions executed by a majority of the
        authorized number of the Company's Board of Directors. Notwithstanding
        anything else herein, the Escrow Holder (including persons and entities
        acting on behalf of or under authority of Escrow Holder), (i) shall have
        no liability for any act or omission hereunder unless it is shown that
        such act or omission was intentional and in bad faith, (ii) may act in
        accordance with any advice of counsel or any order, judgment or decree
        of any court, whether or not final, (iii) in the event of any dispute,
        the Escrow Holder may, in his or her sole discretion, take the course of
        action it deems appropriate or take no action whatsoever, and (iv) shall
        in no event be required to seek legal counsel but may do so at the
        Company's expense.

                                       7.

<PAGE>   8
                      c. Transfer to Transferee. If the Company exercises its
        Purchase Option hereunder, then the Escrow Holder, upon receipt of
        written notice of such option exercise from the proposed transferee,
        shall take all steps necessary to accomplish such transfer.

                      d. Transfer to Purchaser. When the Purchase Option has
        been exercised or expires unexercised or a portion of the Stock has been
        released from the Purchase Option, upon Purchaser's request the Escrow
        Holder shall promptly cause a new certificate to be issued for such
        released Stock and shall deliver such certificate to Purchaser.

                      e. Rights of Purchaser. Subject to the terms hereof,
        Purchaser shall have all the rights of a shareholder with respect to
        such Stock while such shares are held in escrow, including without
        limitation the right to vote the Stock and receive any cash dividends
        declared thereon.

                      f. Adjustment of Stock and Option Price. If, at any time
        or from time to time, there is (i) a dividend of any security, stock
        split or other change in the character or amount of any of the
        outstanding securities of the Company, or (ii) any consolidation, merger
        or sale of all, or substantially all, of the assets of the Company,
        then, in such event, any and all new, substituted or additional
        securities or other property to which Purchaser is entitled by reason of
        his ownership of the Stock shall be immediately subject to the escrow
        referred to in this Section 8 (to the extent the Stock is then so
        subject), shall be deposited with the Escrow Holder, and shall be
        included in the word "Stock" for purposes of this Agreement, and shall
        be subject to the Purchase Option with the same force and effect as the
        shares of Stock presently subject to this Agreement and the Purchase
        Option. While the total Option Price shall remain the same after each
        such event, the Option Price per share of Stock upon exercise of the
        Purchase Option shall be appropriately adjusted as determined by the
        Board of Directors of the Company.

               4. Legends. Upon consummation of this Amendment, Purchaser's
certificate representing the shares of Stock shall have endorsed thereon the
following legend:

                      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
        SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN FOUNDER/EMPLOYEE
        SHAREHOLDER AGREEMENT WHICH INCLUDES A REPURCHASE RIGHT ON THE SALE OF
        THE SECURITIES. COPIES OF THE AGREEMENT MAY BE OBTAINED UPON WRITTEN
        REQUEST TO THE SECRETARY OF THE CORPORATION.

               5. Effect of Amendment. The Founder Agreement, as amended hereby,
shall remain in full force and effect.

               6. Governing Law. This Amendment shall be governed by and
construed in

                                       8.

<PAGE>   9
accordance with the laws of the State of California without regard to the
conflicts of law provisions thereof.

                                       9.

<PAGE>   10
               IN WITNESS WHEREOF, the parties hereto have executed this
Amendment to the Founder Agreement as of the day and year first above written.

                                        ACCELERATED NETWORKS, INC.

                                        By: /s/ SURESH NIHALANI
                                           -------------------------------
                                               Suresh Nihalani
                                               President

                              Address:  5743 Corsa Avenue, Suite 221
                                        Westlake Village, CA 91362

                                        PURCHASER:

                                        /s/ SURESH NIHALANI
                                        ----------------------------------

                              Address:  c/o Accelerated Networks, Inc.
                                        5743 Corsa Avenue, Suite 221

                                      10.

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