Document:

<PAGE>
                                                                   EXHIBIT 10.15

                                                   [HUGHES NETWORK SYSTEMS LOGO]

                               AMENDMENT #2 TO THE
                              TERMS AND CONDITIONS

                                       FOR

                                    38GHZ ODU

                                     BETWEEN

                             HUGHES NETWORK SYSTEMS
                    A HUGHES ELECTRONICS CORPORATION COMPANY
                             11717 EXPLORATION LANE
                           GERMANTOWN, MARYLAND 20876

                                       AND

                               ENDGATE CORPORATION
                                 321 SOQUEL WAY
                           SUNNYVALE, CALIFORNIA 94086

                             DATE: JANUARY 14, 2000

                           CONTRACT NO.: JBG-020798-1

[*] 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>

                        NOTICE OF PROPRIETARY INFORMATION

               All information contained in or disclosed by this
               document is confidential and proprietary to Hughes
               Network Systems. By accepting this material the
               recipient agrees that this material and the information
               contained therein will be held in confidence and will
               not be reproduced, disclosed, or used in whole or in
               part except for purposes of this document.

<PAGE>

                               AMENDMENT #2 TO THE
                              TERMS AND CONDITIONS
                             FOR 38 GHZ ODU BETWEEN
                 HUGHES NETWORK SYSTEMS AND ENDGATE CORPORATION
                           (CONTRACT NO. JBG-020798-1)

         THIS AMENDMENT #2 ("Amendment #2"), effective as of January 14, 2000,
to the Terms and Conditions for 38 GHZ ODU Between Hughes Network Systems and
Endgate Corporation (Contract No. JBG-020798-1) (the "Terms and Conditions"),
dated March 13, 1998, between Hughes Network Systems, a Hughes Electronics
Corporation company, having its principal place of business at 11717 Exploration
Lane, Germantown, Maryland 20876 (hereinafter "Hughes" or "HNS") and Endgate
Corporation, having its principal place of business at 321 Soquel Way,
Sunnyvale, CA 94086 (hereinafter "Endgate"), as amended by Amendment #1 to the
Terms and Conditions, dated as of October 5, 1998, to provide for 24 GHZ ODUs
(the Terms and Conditions, as amended by Amendment #1, hereinafter are referred
to as the "Agreement"), is entered into by and between Hughes and Endgate.

                                   WITNESSETH:

         WHEREAS, on March 13, 1998, Hughes and Endgate entered into the Terms
and Conditions under which Endgate agreed to develop and manufacture a 38-GHZ
Radio Integrated Outdoor Unit for Subscriber and Hub Stations (the "38-GHZ ODU")
for the prices and with the specifications incorporated into that contract and
pursuant to a delivery schedule specified in the contract; and

         WHEREAS, on October 5, 1998, Hughes and Endgate entered into Amendment
#1 to the Terms and Conditions, pursuant to which Endgate agreed to develop and
manufacture a 24-GHZ Radio Integrated Outdoor Unit for Subscriber and Hub
Stations (the "24-GHZ ODU") for the prices and with the specifications set forth
in the Amendment #1 and pursuant to a delivery schedule specified therein; and

         WHEREAS, Hughes represents that it has relied on the Agreement, as
amended, in entering into separate contracts with two of its customers, which
contracts utilize the units to be developed and produced by Endgate hereunder;
and

         WHEREAS, the parties are desirous of entering into this Amendment #2,
so as to assure the most expeditious possible satisfaction of the needs of HNS'
customers.

         NOW THEREFORE in consideration of the mutual covenants herein
expressed, and for the reasons set forth above, the Parties hereto agree as
follows:

1. ARTICLE - SCOPE OF WORK hereby is amended to add the following new Paragraph
after the existing Paragraphs of this Article:

         Contractor shall complete the Development Phase as defined in the
Agreement and shall deliver the remaining units of Work as detailed in the
Memorandum Of Agreement dated July 1, 1999, annexed hereto as Exhibit A and made
a Part hereof. The units of Work shall comply with the Gamma level

                                       1
<PAGE>

         Specifications previously agreed to between the parties, as attached
hereto as Attachment 3, and set forth as follows:

  1024668 Revision A             38 GHz RADIO INTEGRATED OUTDOOR UNITS FOR
                                 SUBSCRIBER AND HUB STATIONS
  1025231 Revision A             HUB ANTENNA, POINT TO MULTIPOINT
  1026128 Revision A             DEMS ODU, Technical Specification

The Development Phase shall be deemed to be complete upon acceptance of the Work
specified above in accordance with the Article of this Contract entitled
ACCEPTANCE. To the extent this new Paragraph is inconsistent with the provisions
of the preceding Paragraphs of this Article, this new Paragraph shall control.

2. ARTICLE - PRICE AND PAYMENT hereby is amended to add new Paragraph D as
follows:

D.       Notwithstanding any provision of Paragraph A through C of this Article
to the contrary, for the Development Phase, the price charged by Contractor
shall be in accordance with the Memorandum Of Agreement dated July 1, 1999
(Exhibit A hereto). To the extent this new Paragraph D is inconsistent with the
provisions of Paragraphs A through C of this Article, this paragraph D shall
control.

3. ARTICLE - PRODUCTION PHASE AND PURCHASE ORDERS hereby is amended (i) to
delete Paragraphs C and D, and to restate them as follows:

C.       Endgate shall manufacture the products specified in Attachment 2 in
accordance with the applicable Specifications and at prices not to exceed those
shown in Attachment 2, which is annexed hereto and made a part hereof. The
prices shown in Attachment 2 include HNS supplied items which HNS shall procure
and/or manufacture in accordance with the applicable Specifications and sell to
Endgate. The terms of any such sales to Endgate by HNS are defined below in the
Article entitled HNS Supplied Items.

D.       Subject to Paragraph E below, Hughes shall have the right to procure
all, some or none of the Contractor Supplied Products at Hughes' sole
discretion.

(ii) to add the following new Paragraphs E, F, G, H and I:

E.       HNS shall purchase, on a non-exclusive basis, 38GHZ ODU's and 38GHz and
         24GHZ MmW Decks from Endgate as required to satisfy HNS requirements
         during calendar year 2000. Endgate shall acquire the necessary
         materials, personnel, equipment and facilities to be ready to
         manufacture said ODU's and MmW Decks, as described in Attachment 2, in
         accordance with the agreed upon leadtime. HNS agrees to purchase the
         following:

                  [*]

         from Endgate during calendar year 2000 as necessary to satisfy firm
         customer orders. Endgate shall confirm receipt of Purchase Orders
         received from Hughes within five (5) business days of

[*] 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.
                                       2
<PAGE>

         receipt by signing a copy of any such Hughes Purchase Order and
         returning signed copy by fax to Hughes.

F.       Endgate shall deliver the items specified in Paragraph E above as
         follows:

         MmW Decks and ODU's shall be delivered in accordance with the ramp
         schedule per Exhibit B attached hereto. Exhibit B is Endgate's
         committed schedule for delivery and is subject to availability of HNS
         Material. It is understood by the parties that the target date to
         complete delivery of the quantity of MmW Decks and ODU's as shown in
         Exhibit B shall be November 30, 2000 for the MmW Decks and September
         30, 2000 for ODU's. HNS shall have the right to cancel any open balance
         due under valid purchase orders, without liability to HNS, in the event
         that Endgate falls behind agreed to delivery schedules as defined in
         Exhibit B, or as agreed to in any Production Purchase Orders issued,
         during any calendar month by [*] or more of the quantity due to have
         shipped.

G.   Pursuant to a Technology Transfer Agreement substantially in the form set
     forth as Annex T to this Amendment #2, for all modules of the ODU except
     for the Tx Mix Module, Rx Module, and the Antennas, Endgate shall provide
     to Hughes, immediately upon their availability or, as of the effective date
     of this Amendment #2, has already provided, all pertinent and required
     documentation, including, but not limited to, design review materials,
     theory of operations, prototype test data, MTBF predictions, reliability
     analysis, junction temperature analyses, parts stress analyses, software,
     artwork, test procedures, test software, know-how, firmware,
     specifications, parts lists, drawings, assembly and other production
     drawings, tooling, production test fixture equipment lists, production test
     fixture schematics and/or wiring list, lists of special jigs or fixtures
     used for test, etc. (the "Pertinent Materials") such that Hughes, at its
     sole option, is able to design, modify, manufacture, and/or have
     manufactured, test, and evaluate the "Endgate Modules" (Endgate Modules
     shall mean all modules of the Endgate Gamma ODU design for both the 24GHz
     ODU and the 38GHz ODU with the exception of the Tx Mix, Rx and Antennas).
     Endgate hereby grants to Hughes, a royalty-free, non-exclusive,
     irrevocable, worldwide license in and to any Endgate and any third-party
     intellectual property rights (but only to the extent that Endgate is
     permitted to grant such license to third party rights) in the Pertinent
     Materials to use the same to design, modify, manufacture, and/or have
     manufactured, test and evaluate the HNS Materials.

H.   Notwithstanding Paragraph F above, with respect to the Tx Mix Module, Rx
     Module and Antennas, solely upon the occurrence of a "Trigger Event" (as
     defined below), Endgate hereby grants HNS an irrevocable, nonexclusive,
     non-sublicensable, non-transferable, royalty-free, worldwide license to the
     Pertinent Materials for the Tx Mix Module, Rx Module and Antennas which
     shall allow HNS to make or have others make, solely in the event of a
     Trigger Event the Tx Mix Module, Rx Module and/or Antennas deliverable
     under this Contract, whether as stand alone or integrated into Products,
     for use by HNS or for sale or lease or resale by HNS. For purposes of this
     Section, a "Trigger Event" means

     (i) (A) all or a substantial portion of the Endgate's assets are
     transferred to an assignee for the benefit of creditors, to a receiver or
     to a trustee in bankruptcy, (B) a proceeding is commenced by or against
     Endgate for relief under bankruptcy or similar laws and such proceeding is
     not dismissed or vacated within sixty (60) days, or (C) Endgate is adjudged
     bankrupt.

     (ii) Endgate fails to deliver Products to HNS for sixty (60) days after the
     agreed-upon delivery date specified in the applicable Purchase Order and
     Endgate has failed to deliver such Product within ten

[*] 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.
                                       3
<PAGE>

     business (10) days of HNS' written notice demanding delivery; provided,
     however, that to the extent that the Trigger Event described in this clause
     H (ii) pertains only to either one of the ODU or Antenna (but not both)
     (the "Trigger Product") then the license granted pursuant to such Trigger
     Event shall be limited to the Pertinent Materials specific to the Trigger
     Product but shall not include Pertinent Materials that relate only to the
     other Product.

I.   Endgate hereby represents and warrants that it holds or timely will obtain
     all necessary rights and consents to make such Pertinent Materials
     available to Hughes for the purposes set forth herein to assure that Hughes
     is not exposed to liability to third-parties who may claim intellectual
     property rights in and to said Pertinent Materials. Endgate hereby agrees
     to defend HNS against any actions suits or proceedings asserted by any such
     third party in connection with intellectual property rights asserted by
     such third party in and to the Pertinent Materials, and to indemnify HNS
     and hold HNS harmless for any losses, costs or damages awarded against HNS
     in such actions, suits or proceedings, provided that Endgate is given
     prompt written notice of any such action, suit or proceeding and sole
     control over the defense or settlement thereof.

and (iii) to redesignate original Paragraph F of this Article of the Agreement
as new Paragraph J.

To the extent that amended Paragraph C and D or new Paragraph E, F, G, H, and I
are inconsistent with the provisions of this Article before amended, the new
Paragraph C, D, E, F, G, H, and I, shall control.

4. A new Article to the Agreement hereby is added as follows:

ARTICLE - HNS SUPPLIED ITEMS

A        HNS supplied items ("HNS Material") shall be defined as the
         items listed in Attachment 1. HNS shall deliver HNS Materials pursuant
         to Purchase Orders that conform to the terms of this Contract.
B.       HNS shall sell HNS Material to Endgate at prices set by HNS.
         Any prices for HNS Material listed in Attachment 2 are estimates only
         and not to be considered firm prices, provided, however, that Endgate's
         total unit prices set forth in Attachment 2 are dependent on the prices
         for HNS Materials, solely to the extent that the price for HNS
         Materials may increase or decrease. Endgate's total unit price shall
         only be subject to change should HNS alter the prices of the HNS
         Materials and only to the extent of the change (increase or decrease).
         Furthermore, should HNS sell HNS Materials to Endgate at prices less
         than shown in Attachment 2, Endgate shall be required to reduce total
         unit prices charged HNS to the extent HNS reduced the price.
C.       Endgate agrees that any HNS Material sold to Endgate by Hughes
         shall not be subject to any administrative mark-up, including but not
         limited to, handling charges, overhead application, profit, general and
         administrative (G&A) burden, taxes, duties, etc. when resold to HNS,
         whether or not said HNS Material has been integrated with other
         equipment.
D.       HNS shall procure and/or manufacture HNS Material in accordance
         with Endgate designs and in accordance with Endgate-supplied
         specifications, provided however, that HNS may at, its sole option,
         elect to modify the designs to improve yields and/or costs provided
         that the required functionality is maintained. Any designs modified by
         HNS will be identified by HNS part numbers.
E.       HNS Material sold by Hughes to Endgate shall be supplied FOB, Sunnyvale
         California.
F.       HNS shall retain a security interest in any HNS Material sold to
         Endgate until payment by Endgate for HNS Material is received by HNS.

                                       4
<PAGE>

G.       Endgate shall not be considered in breach of this Contract to the
         extent that any non-compliance is caused by or attributable to any HNS
         Materials that do not conform to HNS specifications or that are
         delivered after the agreed upon delivery date(s). Endgate has no
         liability under this Amendment #2 for any defects in materials or
         workmanship in any HNS Materials furnished to Endgate hereunder.
         Notwithstanding Paragraph F of the Article Production Phase And
         Purchase Orders above, HNS hereby agrees to defend Endgate against any
         actions suits or proceedings asserted by any third party in connection
         with any such defects or any infringement of third party intellectual
         property rights to the extent that the defect or infringement arise
         from any modification to the design of any of the HNS Materials, and to
         indemnify Endgate for any losses, costs or damages awarded against
         Endgate in such actions, suits or proceedings, provided that HNS is
         given prompt written notice of any such action, suit or proceeding and
         sole control over the defense or settlement thereof.

5.   A new Article to the Agreement hereby is added as follows:

ARTICLE - WAIVER OF CERTAIN RIGHTS BY ENDGATE

         Endgate hereby waives any claim, right, or cause of action, and hereby
agrees not to assert any claim, right or cause of action against Hughes, or any
third party contractor or manufacturer of Hughes, based on any allegation that
the manufacture, modification, use, sale, or importation of any item
manufactured or delivered or scheduled to be manufactured or delivered by HNS or
by HNS subcontractors under this Agreement as amended infringes any Endgate
intellectual property rights. The provisions of this Article shall survive the
termination of this Agreement as amended.

6.   A new Article to the Agreement hereby is added as follows:

ARTICLE - WAIVER BY HUGHES AND WAIVER BY ENDGATE

     Upon completion by Endgate of the Development Phase, as described in
Section 1 of this Amendment #2, and of its obligations with respect to delivery
of the Pertinent Materials as contemplated by this Amendment #2, HNS will
provide Endgate a notice of completion and a general release of all claims
arising in connection with Endgate's performance of the Development Phase of
this Agreement. Except as provided by the preceding sentence, the parties agree
that nothing in this Amendment #2 is a waiver of or limitation upon any right or
remedy afforded to HNS by the Agreement or at law, and that any such right or
remedy remains in full force and effect. The parties further agree that, by this
Amendment #2, HNS does not waive any default by Endgate that may have occurred
under the Agreement up to and including this effective date of this Amendment
#2.

     Furthermore, upon completion by Endgate of the Development Phase, as
described in Section 1 of this Amendment #2, and of its obligations with respect
to delivery of the Pertinent Materials as contemplated by this Amendment #2.
Endgate hereby releases and forever discharges HNS, its affiliates, successors,
representatives, assigns, agents, employees, officers, directors, contractors,
and all other persons and entities whatsoever from all manner of actions and
causes of action, debts, dues, liabilities, controversies, claims, and demands
of every kind and nature, known or unknown, vested or contingent, including
without limitation all claims for personal injury, property damage, or other
damages, injuries or losses, arising out of or relating in any way to the

                                       5
<PAGE>

Contract up to and including the effective date of this Amendment #2.

7.   ARTICLE - RIGHTS TO MANUFACTURE hereby is amended as follows:

HNS, at its sole option, may request and Contractor shall provide all pertinent
and required documentation, including soft, rare, artwork, test procedures,
specifications, parts lists, drawings, etc., as escrowed pursuant to the Article
of this Contract entitled ESCROW OF DESIGN RIGHTS AND DOCUMENTATION, necessary
for HNS to manufacture or have manufactured, test, support, use, sell and resell
the Product(s) should any of the circumstances listed in the Article of this
Contract TERMINATION FOR DEFAULT or in Paragraph H of the Article of this
Contract entitled PRODUCTION PHASE AND PURCHASE ORDERS, as amended, occur or in
the event this Contract is terminated under the provisions of the Article of
this Contract TERMINATION FOR DEFAULT.

     Further, the right to manufacture shall be granted as a non-exclusive,
worldwide, unrestricted, non-transferable, royalty free right to HNS. Contractor
shall also provide reasonable consultation of its key personnel at no cost to
HNS other than the reasonable and actual travel and living costs should HNS
require any travel.

8.   ARTICLE - TERMINATION FOR CONVENIENCE -hereby is amended to delete
Paragraph A, Section 3 and restate as follows:

     3. For the Production Phase and any Production Purchase Orders, HNS
     liability, which shall not include any non-recurring engineering costs,
     shall be limited in accordance with HNS' notice of Termination prior to the
     scheduled delivery date as follows:

                   For Antennas:
                   NOTICE                     LIABILITY
                   [*]                        [*]

                   For MmW Decks & ODU's:
                   NOTICE                     LIABILITY
                   [*]                        [*]

9. Each party, hereby represents and warrants that it has taken all corporate
action and has all necessary corporate authority to enter into this Amendment #2
and to perform as set forth hereunder.

[*] 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.
                                       6
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Amendment #2 to the
Agreement as of the effective date first set forth above.

                                   HUGHES NETWORK SYSTEMS

     ATTEST:                       BY:        /S/ SURESH ARORA
            ------------------         ---------------------------------
                                   NAME:      SURESH ARORA
                                        --------------------------------
                                   TITLE:     VICE PRESIDENT
                                         -------------------------------

                                  ENDGATE CORPORATION

     ATTEST:                       BY:        /S/ STEVE LAYTON
           -------------------          ---------------------------------
                                   NAME:      STEVEN LAYTON
                                        --------------------------------
                                   TITLE:     DIRECTOR OF SALES
                                         -------------------------------
                                                11/15/00

                                       7
<PAGE>

                                 ATTACHMENT - 1

DESCRIPTION                        38GHZ PART NUMBER         24GHZ PART NUMBER

MMWAVE DECK

         Subscriber                                          1028674-0001
         Hub                                                 1028674-0002

         Hub - Low                 1028674-0003
         Hub - High                1028674-0004

         Subscriber - Low          1028674-0005
         Subscriber - High         1028674-0006

COMPLETE ODU

         Subscriber - Low          1028720-0001
         Subscriber - High         1028720-0002

         Hub - Low                 1028720-0003
         Hub - High                1028720-0004

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

These documents are referenced in the assembly drawings identified above.

mmWave Deck             1028664                   1028662

ODU                     TBD-1                        -

Power Amplifier         1028296-0002              1028296-0001

Synthesizer             1028295-0001              1028292-0002

                                       8

<PAGE>

                                 ATTACHMENT - 2

MmWave Decks; 24GHz & 38GHz Combined
<TABLE>
<CAPTION>

<S>                               <C>          <C>           <C>          <C>           <C>
----------------------------------------------------------------------------------------------------------
                                  [*]          Endgate       Endgate      [*] O/H
                                               Material      Labor        on Labor      Total Unit Cost
----------------------------------------------------------------------------------------------------------
                                  [*]          [*]           [*]          [*]              [*]
----------------------------------------------------------------------------------------------------------
</TABLE>
[*]

2)Endgate material and/or labor does not include any HNS content
Upside Potential [*] Decks
<TABLE>
<S>                               <C>          <C>           <C>          <C>            <C>
----------------------------------------------------------------------------------------------------------
                                  [*]          Endgate       Endgate      [*]O/H
                                               Material      Labor         on Labor      Total Ext. Cost
----------------------------------------------------------------------------------------------------------
                                  [*]          [*]           [*]          [*]              [*]
----------------------------------------------------------------------------------------------------------
</TABLE>
[*]

2)Endgate material and/or labor does not include any HNS content 38GHz ODU's
38GHz ODU's
<TABLE>
<S>                               <C>          <C>          <C>          <C>            <C>
----------------------------------------------------------------------------------------------------------
[*]                               [*]          MmWave       Endgate      [*]O/H
                                               Deck         Labor         on Labor      Total Ext. Cost
----------------------------------------------------------------------------------------------------------
[*]                               [*]          [*]           [*]             [*]           [*]
----------------------------------------------------------------------------------------------------------
[*]                               [*]          [*]           [*]             [*]           [*]
----------------------------------------------------------------------------------------------------------
</TABLE>
[*]

2)Endgate material and/or labor does not include any HNS content

ANTENNAS                               U/Price
Subscriber Antenna                     [*]
24GHz and/or 38GHz
                                       U/Price
Hub Antenna                            [*]
24GHz and/or 38GHz

[*] 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>

                          ATTACHMENT - 3 SPECIFICATIONS

         SUBSCRIBER ANTENNA                                   1028836 REV. A

         HUB ANTENNA                                          1025231 REV. B

         38GHZ ODU                                            1029000 REV. A

         38GHZ MMW DECK                                       1028664 REV. A

         24GHZ MMW DECK                                       1028662 REV. B

<PAGE>

                                   EXHIBIT - A

                             Memorandum of Agreement

This Memorandum of Agreement is intended to establish a new and mutually
agreeable payment schedule for HNS Purchase Order Numbers P241537 and 30060
against Contract Number JBG-020798-1. This Memorandum of Agreement will be in
effect until a new contract agreement superceding Contract Number JBG-020798-1
is finalized. The new contract will be established on or before 13 August 1999.

The current contract status is:

Total Purchase orders released are                                 [*]
Total billed to date                                               [*]
Total paid to date                                                 [*]

Unpaid as of 7/1/99 Inv, #400425 6/28/99                           [*]

Open contract balance                                              [*]

Number of Units left to ship                                       [*]

It is agreed that the remaining purchase order balance will be divided equally
across the number of units remaining to be delivered. This results in a per unit
cost of [*] which will be invoiced at the time of shipment and paid per the
payment terms below.

Payment terms remain Net 30 days, FOB Sunnyvale CA. Acceptance is Sunnyvale, CA.

Signed and accepted.

ENDGATE CORPORATION                                  HUGHES NETWORK SYSTEMS

/S/ EDWARD A. KEIBLE                                 /S/ SURESH K. ARORA
---------------------------                          ---------------------------
Edward A. Keible                                     Suresh K. Arora
President         July 1, 1999                       Vice President    2/1/99

[*] 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>

                                   EXHIBIT - B

Delivery schedule at execution of this Amendment #2 is TBD. Final schedule shall
be defined and attached to this Agreement no later than January 14, 2000. The
preliminary understanding between the parties is that at worst case, Endgate
shall meet the Production Delivery schedule presented by Bob Hendrix during the
specification review meeting at HNS held on 12/17/99.

<PAGE>

                                     ANNEX T

                          TECHNOLOGY TRANSFER AGREEMENT

         THIS Technology Transfer Agreement (the "Agreement") shall be effective
on the date of last signature (the "Effective Date") to Amendment #2 to the
Terms and Conditions for 38 GHz ODU ("Amendment #2") made between Hughes Network
Systems, having its principal place of business at 11717 Exploration Lane,
Germantown, Maryland 20876 ("HNS"), and Endgate Corporation, having its
principal place of business at 321 Soquel Way, Sunnyvale, CA 94086 ("Endgate").

                                   WITNESSETH:

         WHEREAS, Amendment #2 requires that Endgate provide to HNS certain
materials, information, and documentation (collectively, the "Pertinent
Materials", defined in Amendment #2); and

         WHEREAS, Endgate and HNS desires to set forth the terms and conditions
controlling the provision of the Pertinent Materials from Endgate to HNS.

         NOW THEREFOR, the Parties hereto, in consideration of the mutual
covenants herein expressed, agree with each other as follows:

1.   DEFINITIONS

         "Intellectual Property Rights" means patents, registered design rights
and applications for any of the foregoing, copyright, unregistered design
rights, topography rights and all forms of protection of any similar nature
(including all such rights in software) which may subsist in any part of the
world for the full term of such rights including any extension to the term of
such rights.

2.   TRANSFER OF PERTINENT MATERIALS

         Immediately upon the availability to Endgate thereof, Endgate shall
provide to HNS a copy of the Pertinent Materials. The Pertinent Materials shall
be provided to HNS per the previously agreed to process (electronic file
transfer where possible and by another mutually agreed to process if needed).
HNS in its sole discretion may require. For the avoidance of doubt, the duty and
obligation of Endgate to provide the Pertinent Materials to HNS shall be
continuous and ongoing throughout the term of this Agreement.

3.   GRANT OF LICENSE RIGHTS BY ENDGATE

         Endgate hereby grants to HNS and HNS hereby accepts from Endgate a
irrevocable, non-exclusive, world-wide, paid-up license, with the right to
sub-license as further defined herein, under Endgate's Intellectual Property
Rights to manufacture, have manufactured, use, sell, lease, or otherwise
transfer, alter, and modify the Pertinent Materials as defined in Paragraph G of
the

                                       -1-
<PAGE>

Article entitled PRODUCTION PURCHASE ORDERES AND FORECAST as amended. In the
event that Endgate has secured a license to any third party Intellectual
Property Rights that are designed into the Pertinent Materials, Endgate shall
offer to the other party any such license rights which it is legally or
contractually permitted to offer at terms no less favorable than its own license
grant.

4.   ENDGATE REPRESENTATIONS AND WARRANTIES

         A.   Endgate represents and warrants that it has the full right and
              power to enter into this Agreement and that there are no
              outstanding agreements, assignments, or encumbrances to which it
              is bound which may restrict, or prohibit entry into, or
              performance under, this Agreement. Endgate further represents and
              warrants that it has the full power and right to grant the license
              set forth in Section 2.

         B.   Endgate represents and warrants that the Pertinent Materials
              provided to HNS hereunder does not and shall not infringe the
              Intellectual Property Rights of any third party.

         C.   Endgate represents and warrants that the Pertinent Materials
              provided to HNS hereunder comprise all of the materials,
              information, and documentation called for in Section 3.F. of
              Amendment #2 that is in the possession or control of or available
              to Endgate relating in any way to the design, modification,
              manufacture, procurement, testing, performance, and evaluation of
              the modules.

5.   AUDIT RIGHTS

         A.   At the request of HNS, Endgate will permit HNS and/or technical
              consultants mutually selected by HNS and Endgate, to examine
              during ordinary business hours such records, files, storage media,
              equipment and facilities of Endgate for the sole purpose of
              determining the adequacy of the Pertinent Materials provided by
              Endgate to HNS and the compliance by Endgate with the obligations
              to provide such Pertinent Materials to HNS on a continuous,
              ongoing basis, as set forth in Section 2 of this Agreement.

         B.   The fees and expenses incurred by HNS in the performance of such
              examination of records under Section 5.A above shall be borne by
              HNS. However, if it is determined in the course of such
              examination that there is or has been noncompliance on the part
              Endgate in fulfilling its obligations hereunder, including
              specifically its obligation under Section 2 of this Agreement,
              then the total fees and expenses of the examination shall be borne
              by Endgate.

         C.   All information disclosed during any audit shall be considered
              proprietary information between the parties. Prior to any audit
              taking place, HNS, Endgate and the third party auditor shall enter
              into a non-disclosure agreement for the benefit of HNS and
              Endgate.

                                       -2-
<PAGE>

6.       TECHNICAL SUPPORT

         Endgate agrees to provide to HNS, at HNS' request and at no additional
cost to HNS, technical support for the purpose of ensuring the technical
adequacy of the Pertinent Materials provided by Endgate to HNS under this
Agreement. Such support shall consist of telephonic and on-site support by
Endgate sufficient to explain to HNS technical personnel the function,
performance, design, operation, manufacture, structure and composition of the
Pertinent Materials.

7.       TERM

         This Agreement shall survive the termination or expiration of the Terms
and Conditions for 38 GHz ODU between Hughes Network Systems and Endgate
Corporation (Contract No. JBG-020798-l) and shall continue until termination
hereof by HNS.

8.       INCONSISTENT TERMS

         In the event of any inconsistency between the terms and conditions of
Amendment #2 and the terms and conditions of this Agreement, the terms and
conditions of this Agreement shall control.

                                       -3-<PAGE>
                                                                   EXHIBIT 10.16
<TABLE>
<CAPTION>

----------------------------------------------                  ---------- ------ --------------------- -----------
<S>                 <C>            <C>                          <C>        <C>    <C>                   <C>
APPLICATION                                                     DATE       REV    REVISION RECORD       APPROVED
----------------------------------------------                  ---------- ------ --------------------- -----------
                                                                6/26/87    1
------------------- -------------- -----------                  ---------- ------ --------------------- -----------
DASH                NEXT ASSY      USED ON                      7/21/98    2
------------------- -------------- -----------                  ---------- ------ --------------------- -----------
                    N/A            DCN                          9/11/98    3
------------------- -------------- -----------                  ---------- ------ --------------------- -----------
                                                                9/29/98    5
------------------- -------------- -----------                  ---------- ------ --------------------- -----------
</TABLE>

        EXHIBIT A

                                STATEMENT OF WORK
                                       FOR
              MANUFACTURE OF A 24-GHZ RADIO INTEGRATED OUTDOOR UNIT
                         FOR SUBSCRIBER AND HUB STATIONS

<TABLE>
<CAPTION>

---------------- ------------- ----------- ------------------------------------------------------------------------
      JOB         APPROVALS       DATE
                                                                   HUGHES NETWORK SYSTEMS, INC.
---------------- ------------- ----------- ------------------------------------------------------------------------
<S>              <C>           <C>         <C>                           <C>
ORIGINATOR       T. Ho         6/26/98
---------------- ------------- ----------- ------------------------------------------------------------------------
APPROVED:
---------------- ------------- ----------- ------------------------------------------------------------------------
CHECKED:                                   TITLE: EXHIBIT A
                                                  SOW FOR MANUFACTURE OF A 24-GHZ RADIO INTEGRATED OUTDOOR
                                                  UNIT FOR SUBSCRIBER AND HUB STATIONS
---------------- ------------- ----------- ------------------------------------------------------------------------
                      SHEET 1 OF 26               52571                            NO. HNS-15009
---------------- ------------------------- ----------------------------- ------------------------------------------
</TABLE>
FORM E75A                                  HUGHES NETWORK SYSTEMS

[*] 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>

24-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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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

<S>                                                                                   <C>
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
    26.1   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
</TABLE>

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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

<TABLE>
<CAPTION>

<S>                                                                                  <C>
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
</TABLE>

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<PAGE>

24-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 24-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 an
ODU. This equipment shall meet all requirements of the 24-GHz ODU specification.
The buyer will neither accept this equipment or render final payment until all
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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<PAGE>

24-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 1026128 defines the Buyer's Technical Specification Source Control
Drawing (SCD) for the ODU. HNS Document 1025231 defines the Buyer's Technical
Specification Source Control Drawing for the ODU antenna.

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 placed 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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<PAGE>

24-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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<PAGE>

24-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/FIELD TRIAL UNITS

The Seller shall deliver [*] qualification/field trial 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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[*] 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>

24-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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[*] 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>

24-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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24-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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<PAGE>

24-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
forward 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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24-GHZ ODU SOW                 COMPANY PROPRIETARY

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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[*] 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>

24-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.

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
SCD.

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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    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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[*] 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>

24-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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24-GHZ ODU SOW                 COMPANY PROPRIETARY

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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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    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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[*] 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>

24-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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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 6

                               MILESTONE SCHEDULE

The following is the milestone schedule for the Work:

6.1 SCHEDULE
<TABLE>
<CAPTION>
               TASK                        DATE DUE
<S>     <C>    <C>    <C>    <C>    <C>    <C>

[*]
</TABLE>

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FORM E75A                                  HUGHES NETWORK SYSTEMS

[*] 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>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

                                    CHAPTER 7

                                QUALITY ASSURANCE

7.1 CONFORMING EQUIPMENT

Production equipment shall conform in all aspects to the Technical Specification
SCD 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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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

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 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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24-GHZ ODU SOW                 COMPANY PROPRIETARY

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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<PAGE>

24-GHZ ODU SOW                 COMPANY PROPRIETARY

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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[*] 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>

24-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_tested

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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[*] 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>

24-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.

       [*]
AFR =  [*]
       [*]

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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FORM E75A                                  HUGHES NETWORK SYSTEMS

[*] 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.

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