Document:

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                             ECO SOIL SYSTEMS, INC.
                      NON STATUTORY STOCK OPTION AGREEMENT

     The Company has granted to the Optionee, pursuant to a Notice of Grant
of Stock Options (the "GRANT AGREEMENT") an option to purchase certain shares
of Stock, upon the terms and conditions set forth in this Option Agreement
(the "OPTION"). The Option shall in all respects be subject to the terms and
conditions of the Grant Agreement, the provisions of which are incorporated
herein by reference.

     1. DEFINITIONS AND CONSTRUCTION.

         1.1 DEFINITIONS. Unless otherwise defined herein, capitalized terms
shall have the meanings assigned to such terms in the Grant Agreement.

         1.2 CONSTRUCTION. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of this Option Agreement. Except when otherwise indicated by the
context, the singular shall include the plural and the plural shall include
the singular. Use of the term "or" is not intended to be exclusive, unless
the context clearly requires otherwise.

     2. TAX STATUS OF OPTION. As indicated in the Grant Agreement, this
Option is intended to be a Nonstatutory Stock Option and is not intended to
be an incentive stock option within the meaning of Section 422(b) of the
Code. The Optionee should consult with the Optionee's own tax advisor
regarding the tax effects of this Option.

     3. ADMINISTRATION. All questions of interpretation concerning this
Option Agreement shall be determined by the Board. All determinations by the
Board shall be final and binding upon all persons having an interest in the
Option. Any officer of the Company or its subsidiaries (collectively, a
"Participating Company" and collectively, the "Participating Company Group")
shall have the authority to act on behalf of the Company with respect to any
matter, right, obligation, or election which is the responsibility of or
which is allocated to the Company herein, provided the officer has apparent
authority with respect to such matter, right, obligation, or election.

     4. EXERCISE OF THE OPTION.

        4.1 RIGHT TO EXERCISE. Except as otherwise provided herein, the
Option shall be exercisable in accordance with the terms of the Grant
Agreement prior to the termination of the Option (as provided in Section 6)
in an amount not to exceed the number of vested Option shares. In no event
shall the Option be exercisable for more shares than the Number of Option
Shares.

        4.2 METHOD OF EXERCISE. Exercise of the Option shall be by written
notice to the Company which must state the election to exercise the Option,
the number of whole shares of

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Stock for which the Option is being exercised and such other representations
and agreements as to the Optionee's investment intent with respect to such
shares as may be required pursuant to the provisions of this Option
Agreement. The written notice must be signed by the Optionee and must be
delivered in person, by certified or registered mail, return receipt
requested, by confirmed facsimile transmission, or by such other means as the
Company may permit, to the Stock Option Plan Administrator of the Company, or
other authorized representative of the Participating Company Group, prior to
the termination of the Option as set forth in Section 6, accompanied by full
payment of the aggregate Exercise Price for the number of shares of Stock
being purchased. The Option shall be deemed to be exercised upon receipt by
the Company of such written notice and the aggregate Exercise Price.

        4.3 PAYMENT OF EXERCISE PRICE.

              (a) FORMS OF CONSIDERATION AUTHORIZED. Except as otherwise
provided below, payment of the aggregate Exercise Price for the number of
shares of Stock for which the Option is being exercised shall be made (i) in
cash, by check, or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of whole shares of Stock owned by the Optionee
having a Fair Market Value (as determined by the Company without regard to
any restrictions on transferability applicable to such stock by reason of
federal or state securities laws or agreements with an underwriter for the
Company) not less than the aggregate Exercise Price, (iii) by means of a
Cashless Exercise, as defined in Section 4.3(c), or (iv) by any combination
of the foregoing.

              (b) TENDER OF STOCK. Notwithstanding the foregoing, the Option
may not be exercised by tender to the Company, or attestation to the
ownership, of shares of Stock to the extent such tender, or attestation to
the ownership, of Stock would constitute a violation of the provisions of any
law, regulation or agreement restricting the redemption of the Company's
stock. The Option may not be exercised by tender to the Company, or
attestation to the ownership, of shares of Stock unless such shares either
have been owned by the Optionee for more than six (6) months or were not
acquired, directly or indirectly, from the Company.

              (c) CASHLESS EXERCISE. A "CASHLESS EXERCISE" means the
assignment in a form acceptable to the Company of the proceeds of a sale or
loan with respect to some or all of the shares of Stock acquired upon the
exercise of the Option pursuant to a program or procedure approved by the
Company (including, without limitation, through an exercise complying with
the provisions of Regulation T as promulgated from time to time by the Board
of Governors of the Federal Reserve System). The Company reserves, at any and
all times, the right, in the Company's sole and absolute discretion, to
decline to approve or terminate any such program or procedure.

         4.4 TAX WITHHOLDING. At the time the Option is exercised, in whole
or in part, or at any time thereafter as requested by the Company, the
Optionee hereby authorizes withholding from payroll and any other amounts
payable to the Optionee, and otherwise agrees to make adequate provision for
(including by means of a Cashless Exercise to the extent permitted by the
Company), any sums required to satisfy the federal, state, local and foreign
tax

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withholding obligations of the Participating Company Group, if any, which
arise in connection with the Option, including, without limitation,
obligations arising upon (i) the exercise, in whole or in part, of the
Option, (ii) the transfer, in whole or in part, of any shares acquired upon
exercise of the Option, (iii) the operation of any law or regulation
providing for the imputation of interest, or (iv) the lapsing of any
restriction with respect to any shares acquired upon exercise of the Option.
The Optionee is cautioned that the Option is not exercisable unless the tax
withholding obligations of the Participating Company Group are satisfied.
Accordingly, the Optionee may not be able to exercise the Option when desired
even though the Option is vested, and the Company shall have no obligation to
issue a certificate for such shares.

         4.5 CERTIFICATE REGISTRATION. Except in the event the Exercise Price
is paid by means of a Cashless Exercise, the certificate for the shares as to
which the Option is exercised shall be registered in the name of the
Optionee, or, if applicable, in the names of the heirs of the Optionee.

         4.6 RESTRICTIONS ON GRANT OF THE OPTION AND ISSUANCE OF SHARES. The
grant of the Option and the issuance of shares of Stock upon exercise of the
Option shall be subject to compliance with all applicable requirements of
federal, state or foreign law with respect to such securities. The Option may
not be exercised if the issuance of shares of Stock upon exercise would
constitute a violation of any applicable federal, state or foreign securities
laws or other law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed. In addition, the
Option may not be exercised unless (i) a registration statement under the
Securities Act shall at the time of exercise of the Option be in effect with
respect to the shares issuable upon exercise of the Option or (ii) in the
opinion of legal counsel to the Company, the shares issuable upon exercise of
the Option may be issued in accordance with the terms of an applicable
exemption from the registration requirements of the Securities Act. THE
OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE
FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE
TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The
inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company's legal counsel to
be necessary to the lawful issuance and sale of any shares subject to the
Option shall relieve the Company of any liability in respect of the failure
to issue or sell such shares as to which such requisite authority shall not
have been obtained. As a condition to the exercise of the Option, the Company
may require the Optionee to satisfy any qualifications that may be necessary
or appropriate, to evidence compliance with any applicable law or regulation
and to make any representation or warranty with respect thereto as may be
requested by the Company.

         4.7 FRACTIONAL SHARES. The Company shall not be required to issue
fractional shares upon the exercise of the Option.

     5. NONTRANSFERABILITY OF THE OPTION. The Option may be exercised during
the lifetime of the Optionee only by the Optionee or the Optionee's guardian
or legal representative and may not be assigned or transferred in any manner
except by will or by the laws of descent and distribution. Following the
death of the Optionee, the Option, to the extent provided in

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Section 7, may be exercised by the Optionee's legal representative or by any
person empowered to do so under the deceased Optionee's will or under the
then applicable laws of descent and distribution.

     6. TERMINATION OF THE OPTION. The Option shall terminate and may no
longer be exercised on the first to occur of (a) the Option Expiration Date
or (b) the last date for exercising the Option following termination of the
Optionee's Service as described in Section 7.

     7. EFFECT OF TERMINATION OF SERVICE.

         7.1 OPTION EXERCISABILITY.

              (a) DISABILITY. If the Optionee's Service (whether as an
employee, consultant or director) with the Participating Company Group is
terminated because of the Disability of the Optionee, the Option, to the
extent unexercised and exercisable on the date on which the Optionee's
Service terminated, may be exercised by the Optionee (or the Optionee's
guardian or legal representative) at any time prior to the expiration of six
(6) months after the date on which the Optionee's Service terminated, but in
any event no later than the Option Expiration Date.

              (b) DEATH. If the Optionee's Service with the Participating
Company Group is terminated because of the death of the Optionee, the Option,
to the extent unexercised and exercisable on the date on which the Optionee's
Service terminated, may be exercised by the Optionee's legal representative
or other person who acquired the right to exercise the Option by reason of
the Optionee's death at any time prior to the expiration of six (6) months
after the date on which the Optionee's Service terminated, but in any event
no later than the Option Expiration Date. The Optionee's Service shall be
deemed to have terminated on account of death if the Optionee dies within
thirty (30) days after the Optionee's termination of Service.

              (c) OTHER TERMINATION OF SERVICE. If the Optionee's Service
with the Participating Company Group terminates for any reason, except
Disability or death, the Option, to the extent unexercised and exercisable by
the Optionee on the date on which the Optionee's Service terminated, may be
exercised by the Optionee within thirty (30) days (or such other longer
period of time as determined by the Board, in its sole discretion) after the
date on which the Optionee's Service terminated, but in any event no later
than the Option Expiration Date.

         7.2 EXTENSION IF EXERCISE PREVENTED BY LAW. Notwithstanding the
foregoing, if the exercise of the Option within the applicable time periods
set forth in Section 7.1 is prevented by the provisions of Section 4.6, the
Option shall remain exercisable until one (1) month after the date the
Optionee is notified by the Company that the Option is exercisable, but in
any event no later than the Option Expiration Date. The Company makes no
representation as to the tax consequences of any such delayed exercise. The
Optionee should consult with the Optionee's own tax advisor as to the tax
consequences of any such delayed exercise.

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         7.3 EXTENSION IF OPTIONEE SUBJECT TO SECTION 16(b). Notwithstanding
the foregoing, if a sale within the applicable time periods set forth in
Section 7.1 of shares acquired upon the exercise of the Option would subject
the Optionee to suit under Section 16(b) of the Exchange Act, the Option
shall remain exercisable until the earliest to occur of (i) the tenth (10th)
day following the date on which a sale of such shares by the Optionee would
no longer be subject to such suit, (ii) the one hundred and ninetieth (190th)
day after the Optionee's termination of Service, or (iii) the Option
Expiration Date. The Company makes no representation as to the tax
consequences of any such delayed exercise. The Optionee should consult with
the Optionee's own tax advisor as to the tax consequences of any such delayed
exercise.

     8. TRANSFER OF CONTROL.

         8.1 DEFINITIONS.

              (a) An "OWNERSHIP CHANGE EVENT" shall be deemed to have
occurred if any of the following occurs with respect to the Company:

                  (i) the direct or indirect sale or exchange in a single or
series of related transactions by the shareholders of the Company of more
than fifty percent (50%) of the voting stock of the Company;

                  (ii) a merger or consolidation in which the Company is a
party;

                  (iii) the sale, exchange, or transfer of all or
substantially all of the assets of the Company; or

                  (iv) a liquidation or dissolution of the Company.

              (b) A "TRANSFER OF CONTROL" shall mean an Ownership Change
Event or a series of related Ownership Change Events (collectively, the
"TRANSACTION") wherein the shareholders of the Company immediately before the
Transaction do not retain immediately after the Transaction, in substantially
the same proportions as their ownership of shares of the Company's voting
stock immediately before the Transaction, direct or indirect beneficial
ownership of more than fifty percent (50%) of the total combined voting power
of the outstanding voting stock of the Company or the corporation or
corporations to which the assets of the Company were transferred (the
"TRANSFEREE CORPORATION(S)"), as the case may be. For purposes of the
preceding sentence, indirect beneficial ownership shall include, without
limitation, an interest resulting from ownership of the voting stock of one
or more corporations which, as a result of the Transaction, own the Company
or the Transferee Corporation(s), as the case may be, either directly or
through one or more subsidiary corporations. The Board shall have the right
to determine whether multiple sales or exchanges of the voting stock of the
Company or multiple Ownership Change Events are related, and its
determination shall be final, binding and conclusive.

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         8.2 EFFECT OF TRANSFER OF CONTROL ON OPTION. Notwithstanding
anything to the contrary contained in this Option Agreement or the Grant
Agreement, in the event of a Transfer of Control, subject to compliance with
applicable securities laws, this Option shall immediately accelerate in full
and shall become immediately exercisable as to all Shares underlying the
Option. All Shares acquired upon exercise of the Option subsequent to such
acceleration shall continue to be subject to all applicable provisions of
this Option Agreement.

     9. ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. In the event of any
stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification, or similar change in the capital structure of
the Company, appropriate adjustments shall be made in the number, Exercise
Price and class of shares of stock subject to the Option. If a majority of
the shares which are of the same class as the shares that are subject to the
Option are exchanged for, converted into, or otherwise become (whether or not
pursuant to an Ownership Change Event) shares of another corporation (the
"NEW SHARES"), the Board may unilaterally amend the Option to provide that
the Option is exercisable for New Shares. In the event of any such amendment,
the Number of Option Shares and the Exercise Price shall be adjusted in a
fair and equitable manner, as determined by the Board, in its sole
discretion. Notwithstanding the foregoing, any fractional share resulting
from an adjustment pursuant to this Section 9 shall be rounded up or down to
the nearest whole number, as determined by the Board, and in no event may the
Exercise Price be decreased to an amount less than the par value, if any, of
the stock subject to the Option. The adjustments determined by the Board
pursuant to this Section 9 shall be final, binding and conclusive.

     10. RIGHTS AS A SHAREHOLDER, EMPLOYEE OR CONSULTANT. The Optionee shall
have no rights as a shareholder with respect to any shares covered by the
Option until the date of the issuance of a certificate for the shares for
which the Option has been exercised (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date such certificate is
issued, except as provided in Section 9. If the Optionee is an Employee, the
Optionee understands and acknowledges that, except as otherwise provided in a
separate, written employment agreement between a Participating Company and
the Optionee, the Optionee's employment is "at will" and is for no specified
term. Nothing in this Option Agreement shall confer upon the Optionee any
right to continue in the Service of a Participating Company or interfere in
any way with any right of the Participating Company Group to terminate the
Optionee's Service as an Employee or Consultant, as the case may be, at any
time.

     11. LEGENDS. The Company may at any time place legends referencing any
applicable federal, state or foreign securities law restrictions on all
certificates representing shares of stock subject to the provisions of this
Option Agreement. The Optionee shall, at the request of the Company, promptly
present to the Company any and all certificates representing shares acquired
pursuant to the Option in the possession of the Optionee in order to carry
out the provisions of this Section. Unless otherwise specified by the
Company, legends placed on such certificates may include, but shall not be
limited to, the following:

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     "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS
MADE IN ACCORDANCE WITH RULE 144 OR RULE 701 UNDER THE ACT, OR THE COMPANY
RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY
SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR
HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT."

     12. PUBLIC OFFERING. The Optionee hereby agrees that in the event of any
underwritten public offering of stock, including an initial public offering
of stock, made by the Company pursuant to an effective registration statement
filed under the Securities Act, the Optionee shall not offer, sell, contract
to sell, pledge, hypothecate, grant any option to purchase or make any short
sale of, or otherwise dispose of any shares of stock of the Company or any
rights to acquire stock of the Company for such period of time from and after
the effective date of such registration statement as may be established by
the underwriter for such public offering; provided, however, that such period
of time shall not exceed one hundred eighty (180) days from the effective
date of the registration statement to be filed in connection with such public
offering. The foregoing limitation shall not apply to shares registered in
the public offering under the Securities Act. The Optionee shall be subject
to this Section provided and only if the officers and directors of the
Company are also subject to similar arrangements.

     13. RESTRICTIONS ON TRANSFER OF SHARES. No shares acquired upon exercise
of the Option may be sold, exchanged, transferred (including, without
limitation, any transfer to a nominee or agent of the Optionee), assigned,
pledged, hypothecated or otherwise disposed of, including by operation of
law, in any manner which violates any of the provisions of this Option
Agreement and any such attempted disposition shall be void. The Company shall
not be required (a) to transfer on its books any shares which will have been
transferred in violation of any of the provisions set forth in this Option
Agreement or (b) to treat as owner of such shares or to accord the right to
vote as such owner or to pay dividends to any transferee to whom such shares
will have been so transferred.

     14. BINDING EFFECT. Subject to the restrictions on transfer set forth
herein, this Option Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

     15. TERMINATION OR AMENDMENT. The Board may terminate or amend this
Option at any time; provided, however, that no such termination or amendment
may adversely affect the Option or any unexercised portion hereof without the
consent of the Optionee unless such termination or amendment is necessary to
comply with any applicable law or government regulation. No amendment or
addition to this Option Agreement shall be effective unless in writing.

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     16. NOTICES. Any notice required or permitted hereunder shall be given
in writing and shall be deemed effectively given (except to the extent that
this Option Agreement provides for effectiveness only upon actual receipt of
such notice) upon personal delivery or upon deposit in the United States Post
Office, by registered or certified mail, with postage and fees prepaid,
addressed to the other party at the address shown on the Grant Agreement or
at such other address as such party may designate in writing from time to
time to the other party.

     17. INTEGRATED AGREEMENT. The Grant Agreement and this Option Agreement
constitute the entire understanding and agreement of the Optionee and the
Participating Company Group with respect to the subject matter contained
herein and therein and there are no agreements, understandings, restrictions,
representations, or warranties among the Optionee and the Participating
Company Group with respect to such subject matter other than those as set
forth or provided for herein or therein. To the extent contemplated herein or
therein, the provisions of the Grant Agreement and this Option Agreement
shall survive any exercise of the Option and shall remain in full force and
effect.

     18. APPLICABLE LAW. This Option Agreement shall be governed by the laws
of the State of Delaware as such laws are applied to agreements between
Delaware residents entered into and to be performed entirely within the State
of Delaware.

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                                              Optionee: ________________________

                                                  Date: ________________________

                                 EXERCISE NOTICE

Eco Soil Systems, Inc.
___________________________
___________________________

Attention: Stock Option Plan Administrator

Ladies and Gentlemen:

         1. EXERCISE OF OPTION. I was granted a nonstatutory stock option
(the "OPTION") to purchase shares of the common stock of Eco Soil Systems,
Inc. (the "COMPANY") on ___________________, 19___, pursuant to the Notice of
Grant of Stock Options dated __________________, 19___ and the related Stock
Option Agreement (together, the "OPTION AGREEMENT"). I hereby elect to
exercise the Option as to a total of __________________ shares of the common
stock of the Company (the "SHARES"), all of which have vested in accordance
with the Option Agreement.

         2. PAYMENT. Enclosed herewith is full payment in the aggregate
amount of $_____________ (representing $_______ per share) for the Shares in
the manner set forth in the Option Agreement. I authorize payroll withholding
and otherwise will make adequate provision for foreign, federal and state tax
withholding obligations of the Company, if any.

         3. BINDING EFFECT. I agree that the Shares are being acquired in
accordance with and subject to the terms, provisions and conditions of the
Option Agreement set forth therein, to all of which I hereby expressly
assent. This Agreement shall inure to the benefit of and be binding upon my
heirs, executors, administrators, successors and assigns.

         4. TRANSFER. I am aware that Rule 144, promulgated under the
Securities Act of 1933, which permits limited public resale of securities
acquired in a nonpublic offering, is not currently available with respect to
the Shares and, in any event, is available only if certain conditions are
satisfied. I understand that any sale of the Shares that might be made in
reliance upon Rule 144 may only be made in limited amounts in accordance with
the terms and conditions of such rule and that a copy of Rule 144 will be
delivered to me upon request.

         My address of record is:

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          ____________________________________________________________________

          ____________________________________________________________________

         My Social Security Number is:

          _____________________________________________

         I understand that I am purchasing the Shares pursuant to the terms
of my Option Agreement, copies of which I have received and carefully read
and understand.

                                           Very truly yours,

         (Signature)                       ___________________________________

         (Optionee's Name Printed)         ___________________________________

Receipt of the above is hereby acknowledged.

ECO SOIL SYSTEMS, INC.

By:________________________________

Name:______________________________

Title:_____________________________

Date:______________________________

                                       2MERGER

                                             EXHIBIT 10.1 

 

AGREEMENT AND PLAN OF MERGER

by and among

JDS UNIPHASE CORPORATION,

JDS UNIPHASE ACQUISITION, INC.,

EPITAXX, INC. and

THE STOCKHOLDERS OF EPITAXX, INC.

 

October 1, 1999

LIST OF EXHIBITS

EXHIBIT A --   Form of Non-Competition and Confidentiality
Agreement
EXHIBIT B --  Form of Employment Agreement Amendment

 

AGREEMENT AND PLAN OF MERGER

This
Agreement and Plan of Merger (this "Agreement") is entered into this
1st day of October, 1999 by and among JDS Uniphase Corporation, a Delaware
corporation ("ACQUIROR"), JDS Uniphase Acquisition, Inc., a Delaware
corporation ("Newco"), EPITAXX, INC., a Delaware corporation
("EPITAXX" or the "Company"), NSG Holding USA, Inc., a
Delaware corporation and the principal stockholder of EPITAXX (the
"Principal Stockholder"), and the persons executing this Agreement as
stockholders of EPITAXX (together with the Principal Stockholder, the
"Stockholders").

W I T N E S S
E T H :

WHEREAS the
Stockholders are the registered and beneficial owners of all of the issued and
outstanding shares of capital stock of every kind and description of EPITAXX
(said shares being herein referred to as the "EPITAXX Shares");

WHEREAS the
parties wish to effect the acquisition of the Company by Acquiror through a
merger of Newco with and into the Company on the terms and conditions set forth
in this Agreement; and

WHEREAS this
Agreement is intended to be a taxable transaction pursuant to the Internal
Revenue Code of 1986, as amended (the "Code").

NOW
THEREFORE, in consideration of the promises and of the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby mutually acknowledged, intending to
be legally bound the parties hereby agree as follows:

ARTICLE I

THE MERGER

SECTION 1.1The Merger.  On the basis of the representations,
warranties and undertakings set forth in this Agreement, on the terms and
subject to the conditions set forth in this Agreement, and in accordance with
the General Corporation Law of the State of Delaware (the "DGCL"),
Newco shall be merged with and into the Company (the "Merger").  The
Merger shall occur at the Effective Time (as defined in Section 1.3).  Following the Merger, the Company shall be
the surviving corporation (the "Surviving Corporation") and the
separate corporate existence of Newco shall cease.

SECTION 1.2Conversion of
EPITAXX Shares.

(a)At the Effective Time, by
virtue of the Merger and without any action on the part of the Company, the
Stockholders, Newco or Acquiror:

(i)All EPITAXX Shares outstanding immediately prior to
the Effective Time shall be converted into and become the right to receive the
Merger Consideration (as defined in Section 1.4 below).  

(ii)Each share of the common stock of Newco, $0.001 par
value per share ("Newco Common Stock"), outstanding immediately prior
to the Effective Time shall be converted into and become one validly issued,
fully paid and nonassessable share of Class A Common Stock (as hereinafter
defined).

(b)The Merger Consideration shall
be allocated among the Stockholders in the manner set forth on Schedule
1.2(b).

SECTION 1.3Effective Time.  As soon as practicable after
satisfaction or waiver of all conditions to the Merger set forth in this
Agreement, but, in any event, no later than five (5) business days after such
satisfaction or waiver (unless otherwise agreed in writing by the parties), the
parties shall cause a certificate of merger (the "Certificate of
Merger") with respect to the Merger to be filed and recorded in accordance
with Section 251(c) of the DGCL, in form and content reasonably acceptable to
the parties, and shall take all such further actions as may be required by law
to make the Merger effective.  The Merger shall be effective upon the filing and
acceptance of the Certificate of Merger (the
"Effective Time").  

SECTION 1.4Merger
Consideration.

(a)The aggregate consideration payable by Acquiror in
connection with the Merger (the "Merger Consideration") shall be (i)
the number of unregistered shares of Acquiror's common stock, $0.001 par value per share ("Acquiror Common Stock"), equal
to (A) Three Hundred Ninety-Nine Million Nine Hundred Ninety-Nine Thousand
Dollars ($399,999,000) divided by the Market Value (as hereinafter defined)
rounded to the nearest whole share (the "Total Acquiror Shares"),
minus (B) the portion of such shares allocated to the outstanding
Employee Options (as hereinafter defined) pursuant to subsection (f) below, and
(ii) $1,000 payable in cash or cash equivalent.  For
the purposes of this Agreement, the term "Market Value" shall mean the
average closing market price of one share of Acquiror Common Stock on the Nasdaq
National Market (as reported in the Wall Street Journal, Eastern Edition) for
the twenty (20) trading days ending on the third trading day prior to the
Closing Date.  For the purposes of this Agreement,
the term "Exchange Ratio" shall mean the fraction obtained by dividing
the Total Acquiror Shares by the number of EPITAXX Shares and the number of
shares of the Company's capital stock subject to outstanding Employee Options.

(b)Cancellation of EPITAXX
Shares Owned by EPITAXX.  At the Effective Time, all shares of EPITAXX Class
A Common Stock, par value $0.01 per share (the "Class A Common Stock")
and EPITAXX Class B Common Stock, $0.01 par value per share (the "Class B
Common Stock") that are owned by the Company as treasury stock prior to the
Effective Time shall be canceled and extinguished without any conversion
thereof.

(c)Adjustments to Exchange
Ratio.  The Exchange Ratio shall be adjusted to reflect fully the effect of
any stock split, reverse split, stock dividend (including any dividend or
distribution of securities convertible into Acquiror Common Stock),
reorganization, recapitalization or other like change with respect to Acquiror
Common Stock occurring after the date hereof and prior to the Effective Time.

(d)Fractional Shares.  No
fraction of a share of Acquiror Common Stock will be issued, but in lieu thereof
each holder of EPITAXX Shares who would otherwise be entitled to a fraction of a
share of Acquiror Common Stock (after aggregating all fractional shares of
Acquiror Common Stock to be received by such holder) shall receive from Acquiror
an amount of cash (rounded to the nearest whole cent) equal to the product of
(i) such fraction, multiplied by (ii) the Market Value.

(e)Treatment of Restricted
Shares.  The EPITAXX Shares subject to restrictions pursuant to certain
Restricted Stock Agreements (the "EPITAXX Stockholders' Agreements")
by and between the Company and each of its individual stockholders shall be
converted into shares of Acquiror Common Stock in accordance with the provisions
set forth in this Section 1 without further restriction.

(f)Options.  At the Effective Time, any and all
outstanding and unexercised Employee Options shall cease to represent a right to
acquire shares of the Company's capital stock and shall be converted
automatically into options to purchase shares of Acquiror Common Stock
("Acquiror Options") in an amount and at an exercise price determined
as provided below:
(i)The number of shares of Acquiror Common Stock
subject to the new Acquiror Option shall be equal to the product of the number
of EPITAXX Shares subject to the Employee Option and the Exchange Ratio;
provided that any fractional shares of Acquiror Common Stock resulting from such
multiplication shall be rounded down to the nearest share; and

(ii)The exercise price per share of Acquiror Common
Stock under the Acquiror Option shall be equal to the quotient obtained by
dividing the exercise price per EPITAXX Share subject to the Employee Option by
the Exchange Ratio, provided that such exercise price shall be rounded to the
nearest cent.  For this purpose, each EPITAXX Share issuable pursuant to an
Employee Option that is outstanding at the Effective Time will be deemed to be
outstanding immediately prior to the Effective Time.  From and after the
Effective Time, the Stock Option Plans (as defined below) shall be assumed by
Acquiror and shall continue in effect, provided that no further options shall be
granted under the Stock Option Plans.

(iii)All shares of Acquiror Common Stock subject to
each New Acquiror Option shall be included in Acquiror's Registration Statement
on Form S-8 filed under the Securities Act of 1933, as amended (the
"Securities Act"), which Acquiror shall file with the Securities and
Exchange Commission no later than fifteen (15) days after the Effective Time, so
as to permit the immediate resale of any Acquiror Common Stock issued upon
exercise of a new Acquiror Option.

SECTION 1.5Surrender of Certificates.

(a)Acquiror to Provide Common
Stock and Cash.  On the Closing Date, Acquiror shall make available for
exchange in accordance with this Article I, (i) the shares of Acquiror Common
Stock and cash issuable and payable, respectively, pursuant to Section 1.2(a) in
exchange for the EPITAXX Shares outstanding immediately prior to the Effective
Time, all of which EPITAXX Shares will be surrendered by the Stockholders at the
Closing, and (ii) cash in an amount sufficient to permit payment of cash in lieu
of fractional shares pursuant to Section 1.4(d).

SECTION 1.6No
Further Ownership Rights in Shares.  All shares of Acquiror
Common Stock issued upon the surrender and exchange of EPITAXX Shares in
accordance with the terms hereof (including any cash paid in lieu of fractional
shares) and the cash portion of the Merger Consideration shall be deemed to have
been issued and paid in full satisfaction of all rights pertaining to such
EPITAXX Shares, and there shall be no further registration of transfers on the
records of the Surviving Corporation of EPITAXX  Shares which were outstanding
immediately prior to the Effective Time.  

SECTION 1.7Lost,
Stolen or Destroyed Certificates.  In the event any Certificates
shall have been lost, stolen or destroyed, the Acquiror shall issue in exchange
for such lost, stolen or destroyed Certificates, upon the making of an affidavit
of that fact by the holder thereof, such shares of Acquiror Common Stock (and
cash in lieu of fractional shares) as may be required pursuant to Section 1.2;
provided, however, that Acquiror may, in its discretion and as a condition
precedent to the issuance thereof, require the owner of such lost, stolen or
destroyed Certificates to deliver a bond in such sum as it may reasonably direct
as indemnity against any claim that may be made against Acquiror, the Surviving
Corporation or the Exchange Agent with respect to the Certificates alleged to
have been lost, stolen or destroyed.

SECTION 1.8Tax And
Accounting Consequences.  It is intended by the parties hereto
that the Merger shall constitute a taxable transaction under the Code.  It is
intended by the parties that the Merger shall be accounted for under the
purchase method of accounting.   

SECTION 1.9Exemption from Registration.  The
shares of Acquiror Common Stock to be issued in connection with the Merger will
be issued in a transaction exempt from registration under the Securities Act by
reason of Section 4(2) thereof.  The shares of Acquiror Common Stock delivered
at the Closing will be "restricted securities" which have not been
registered under the Securities Act of 1933, as amended, and must be held until
they are either registered or an exemption from registration becomes available
for their resale.  The certificates representing such Acquiror Common Stock
shall, when issued, include such restrictive legends as reasonably required by
Acquiror evidencing the foregoing restrictions and any similar restrictions
required by applicable state law.  Acquiror shall use reasonable efforts to
cause such Acquiror Common Stock to be registered under the Securities Act as
provided in Section 6.3.  

SECTION 1.10Effects of the
Merger.  The Merger shall have the effects set forth in Sections 259, 260
and 261 of the DGCL .

SECTION 1.11Certificate of
Incorporation and By-laws.  The Certificate of Incorporation and By-laws of the Company, in each case as
in effect immediately prior to the Effective Time, shall be the Certificate of
Incorporation and By-laws of the Surviving Corporation immediately after the
Effective Time.

SECTION 1.12Directors and
Officers.  The directors and officers of Newco immediately prior to the
Effective Time shall be the directors and officers of the Surviving Corporation
immediately after the Effective Time.

SECTION 1.13Closing.
Subject to the satisfaction or waiver of each of the conditions set forth in
Articles VII and VIII of this Agreement, the closing of the transactions
contemplated by this Agreement (the "Closing") shall take place at the
offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., One Financial
Center, Boston, Massachusetts immediately prior to the Effective Time (the date
of the Closing, the "Closing Date").

At the Closing:

(a)The Company and the
Stockholders shall deliver or cause to be delivered to Acquiror the
following: 

(i)Certificates for the EPITAXX Shares duly endorsed to
Acquiror, or accompanied by separate stock assignments with the signature of
each Stockholder duly guaranteed by a commercial bank or trust company or by a
member of the New York Stock Exchange;

(ii)The certificates required by Sections 7.2, 7.3 and
7.5;

(iii)The opinion of counsel required by Section 7.6; 

(iv)A copy of the resolutions of each of the Stockholders
and the Board of Directors of each of the Company and the Principal Stockholder,
certified by its Secretary, authorizing and approving the execution, delivery
and performance of this Agreement and the transactions contemplated hereby and
the acts of the officers and employees of the Company and the Principal
Stockholder in carrying out the terms and provisions hereof; and

(v)All of the books, data, documents, instruments and
other records relating to the Company including without limitation the original
incorporation documents, foreign qualifications, by-laws, minute book, stock
record book, contracts and agreements referred to in Article II, licenses,
patent applications, trademark registrations and permits identified herein and
all laboratory notebooks and other notes and records relating to the Company's
intellectual property.

(b)Acquiror shall deliver or
cause to be delivered to the Principal Stockholder and to the Representative (as
defined in Section 12.16) the following:

(i)the Merger Consideration;

(ii)The certificates required by Sections 8.1 and
8.2;

(iii)The opinion of counsel required by Section 8.3;
and

(iv)A copy of the resolutions of the Board of Directors
of each of Acquiror and Newco, certified by their respective Secretary,
authorizing and approving the execution, delivery and performance of this
Agreement and the transactions contemplated hereby and the acts of the officers
and employees of Acquiror and Newco in carrying out the terms and provisions
hereof.

(c)The parties shall
deliver:

(i)The Certificate of Merger and the Non-Competition and
Confidentiality Agreements referred to in Section 5.13 hereof; and

(ii)Such further documents, resolutions, certificates and
instruments as any party or his, her or its counsel reasonably requests to
facilitate the consummation of the transactions contemplated hereby.

SECTION 1.14Further
Assurances.  At any time and from time to time after the Closing Date, at
the request of Acquiror and without further consideration, each Stockholder will
execute and deliver such other instruments of sale, transfer, conveyance,
assignment and confirmation as may be reasonably requested in order to more
effectively transfer, convey and assign to Acquiror and to confirm Acquiror's
title to the EPITAXX Shares.

ARTICLE II

REPRESENTATIONS AND
WARRANTIES OF

THE PRINCIPAL STOCKHOLDER AND EPITAXX

In this Agreement, any reference to any event, change,
condition or effect being "material" with respect to any entity means
any material event, change, condition or effect related to the condition
(financial or otherwise), properties, assets (including intangible assets),
liabilities, business, operations or results of operations of such entity and
its subsidiaries, taken as a whole.  In this Agreement, any reference to a
"Material Adverse Effect" with respect to any entity means any event,
change or effect that is materially adverse to the condition (financial or
otherwise), properties, assets, liabilities, business, operations or results of
operations of such entity and its subsidiaries, taken as a whole.  In this
Agreement, any reference to "Material Adverse Change" with respect to
any entity means any change which is, individually
or in the aggregate, materially adverse to the business, operations, properties,
assets, liabilities or condition (financial or otherwise) of such entity and its
subsidiaries, taken as a whole.  Whenever the term "to the Company's
knowledge" or similar expression appears in any representation or warranty
in this Article II, it means to the actual knowledge of the officers and
directors of the Company and all management employees of the Company having
responsibility for the area of operations of the Company's business or the
financial or legal matters as to which the issue of knowledge relates under this
Agreement (all such persons, "Knowledge Parties").  Whenever the term
"the Company has received no notice" or like expression appears in any
representation or warranty in this Article II, it means that none of the
Knowledge Parties has received actual oral or written notice of the matter to
which such term is applied.

As an inducement to Acquiror to enter
into this Agreement and to consummate the transactions contemplated hereby, the
Principal Stockholder hereby represents and warrants to Acquiror
that:

SECTION 2.1Title to EPITAXX Shares.  The Principal Stockholder
owns such EPITAXX Shares beneficially and of record set forth opposite its name,
free and clear of all liens, encumbrances, claims, charges, security interests,
pledges, restrictions or rights in others (collectively, "Liens"), in
the manner specified on Schedule 1.2(b).

SECTION 2.2Principal Stockholder's Authority to Execute and Perform
Agreement. The Principal Stockholder has the full legal right and power and
all authority and approval required by law and its organizational documents to
enter into this Agreement and to perform its obligations hereunder.  The
Principal Stockholder has duly executed and delivered this Agreement, and this
Agreement is the legal, valid and binding obligation of the Principal
Stockholder enforceable in accordance with its terms.  On the Closing Date,
neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the performance of this Agreement in
compliance with its terms and conditions by the Principal Stockholder will
(a) conflict with or result in any material violation of any trust
agreement, certificate of incorporation, By-law, judgment, decree, order,
statute or regulation applicable to the Principal Stockholder or to the EPITAXX
Shares owned by the Principal Stockholder, or any material breach of any
agreement to which the Principal Stockholder is a party or by which the
Principal Stockholder or its EPITAXX Shares are bound, or constitute a material
default thereunder, or result in the creation of any claim of any kind or nature
on, or with respect to its EPITAXX Shares, or (b) result in any material
violation of, or be in conflict with, or constitute a material default under,
any agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to the Principal Stockholder.

The Company and the Principal
Stockholder, jointly and severally, represent and warrant to the Acquiror as
follows:  

SECTION 2.3Capitalization.  The authorized, issued and
outstanding capital stock of EPITAXX consists on the date hereof, and will on
the Closing Date consist solely of, 12,500,000 authorized shares of Class A
Common Stock, of which 25,200 shares are issued and outstanding and owned by the
Stockholders, free and clear of all Liens, as set forth on
Schedule 2.3 delivered by the Company to the Acquiror concurrently
with the execution of this Agreement; 7,500,000 authorized shares of Class B
Common Stock, of which 5,088,000 shares are issued and outstanding and owned by
the Principal Stockholder, free and clear of all Liens, as set forth on
Schedule 2.3; and 5,000,000 authorized shares of Preferred Stock, of
which no shares are issued and outstanding, in each case with no personal
liability attaching to the ownership thereof.  All of such shares are duly
authorized, validly issued, fully paid and non-
assessable and were issued in full compliance with all federal, state and local
rules, laws and regulations.  The designations, powers, preferences, rights,
qualifications, limitations and restrictions in respect of each class and series
of authorized capital stock of EPITAXX are as set forth in EPITAXX's Certificate
of Incorporation, as amended, a true, correct and complete copy of which has
been provided to Acquiror, and all such designations, powers, preferences,
rights, qualifications, limitations and restrictions are valid, binding and
enforceable in accordance with all applicable laws.  There are, and at the
Closing Date there will be, no shares held in the corporate treasury of EPITAXX
and no shares reserved for issuance.  Except as set forth on Schedule
2.3, as of the date hereof there are, and as of the Closing Date there will
be, no outstanding subscriptions, options, warrants, rights, calls or
convertible securities, stock appreciation rights (phantom or otherwise), joint
venture, partnership or other commitments of any nature relating to shares of
the capital stock of the Company.  As of the date hereof there is, and as of the
Closing Date the Company will have, no obligation (contingent or other) to
purchase, redeem or otherwise acquire any of its equity securities or any
interest therein or to pay any dividend or make any other distribution in
respect thereof.  All stock option plans maintained by the Company
relating to options to purchase shares of the Company's capital stock, true,
complete and correct copies of which have been previously delivered to Acquiror,
are herein sometimes referred to as the "Stock Option Plans."  All
options to purchase shares of the capital stock of the Company issued pursuant
to the Stock Option Plans, or otherwise, and listed on Schedule 2.3 are
herein sometimes referred to as "Employee Options."  As of the
Effective Time, other than the Employee Options, the Company will have no
outstanding options, warrants or other rights to purchase any shares of the
Company's capital stock or any securities convertible into or exchangeable for
such capital stock.

SECTION 2.4Organization and Qualification.  The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware, and is duly licensed or qualified to transact business
as a foreign corporation in each jurisdiction listed on Schedule 2.4
delivered by the Company to the Acquiror concurrently with the execution of this
Agreement, such jurisdictions being the only jurisdictions in which the nature
of the Company's business or the character of the properties owned or leased by
the Company requires such licensing or qualification and where the failure to be
so licensed or qualified would have a Material Adverse Effect on the
Company.

SECTION 2.5Subsidiaries.  The Company has no subsidiaries
other than a foreign sales corporation, EPITAXX FSC, Inc., a U.S. Virgin Island
corporation (the `Subsidiary"), which is not a material subsidiary.  The
Company holds beneficially and of record all of the outstanding capital stock of
the Subsidiary.  Except for the Subsidiary, the Company holds no equity or other
interest in any corporation, partnership, limited liability company, trust or
other entity.  Except as set forth on Schedule 2.5 delivered by the
Company to the Acquiror concurrently with the execution of this Agreement, the
Company has not (i) made any investment in or advance of cash to any entity or
(ii) entered into any joint venture arrangement or agreement with any party.
 The Subsidiary is a corporation duly organized, validly existing and in
good standing under the laws of the United States Virgin Islands, and is and is
duly licensed or qualified to transact business as a foreign corporation in each
jurisdiction where the failure to be so licensed or qualified would have a
Material Adverse Effect on the Company.

SECTION 2.6Corporate Power and Authority.  The Company has the
corporate power and authority to own and hold its properties and to carry on its
business as presently conducted and contemplated to be conducted.  The Company
has the corporate power and authority to execute, deliver and perform this
Agreement and the other documents and instruments contemplated hereby.  The
execution, delivery and performance of this Agreement and the documents
contemplated hereby and the consummation of the transactions contemplated hereby
and thereby have been duly authorized and approved by the board of directors and
stockholders of the Company, and no further corporate or stockholder action
is required thereby to consummate the transactions
contemplated hereby.  Upon the filing of the Merger Certificate with the
Secretary of State for the State of Delaware, the Merger shall be immediately
and automatically effective without further action by any person or entity.
This Agreement, and each of the other agreements, documents and instruments to be executed and delivered by the Company
pursuant hereto have been duly executed and delivered by, and constitute the
legal, valid and binding obligation of, the Company and are enforceable against
the Company in accordance with their terms.  

SECTION 2.7Validity, Etc.  Except as set forth on Schedule
2.7 delivered by the Company to the Acquiror concurrently with the execution
of this Agreement, neither the execution and delivery of this Agreement and the
other documents and instruments contemplated hereby, the consummation of the
transactions contemplated hereby or thereby, nor the performance of this
Agreement and such other agreements in compliance with the material terms and
conditions hereof and thereof will (i) violate, conflict with or result in
any material breach of any trust agreement, Certificate of Incorporation, or
bylaw, applicable to the Company, (ii) require any consent, approval,
authorization or permit of, or filing with or notification to, any governmental
or regulatory authority, other than any notification and approval required under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the "HSR
Act"), (iii) violate, conflict with or result in a material breach of,
default under, amendment of, or acceleration or termination of any indebtedness,
mortgage, indenture, note, license, agreement or other instrument or obligation
related to the Company or any of its assets or the consummation of the
transactions contemplated hereby or thereby, except for such defaults (or rights
of termination, cancellation or acceleration) as to which requisite valid and
binding waivers or consents have been obtained in writing and provided to
Acquiror, (iv) violate any order, writ, injunction, decree, statute, law,
permit, license rule or regulation applicable to the Company  or (v) result
in the creation of any claim upon the EPITAXX Shares or any assets of the
Company.

SECTION 2.8Financial Statements.  The Company has previously
furnished to Acquiror, the balance sheet of the Company at August 31, 1999 (the
"Balance Sheet") and at March 31, 1998 and March 31, 1999 and the
related statements of income and cash flow and notes thereto for the fiscal
years ended March 31, 1998 and March 31, 1999 and for the five-month period
ended August 31, 1999 .  All such financial statements (the "Financial
Statements") have been prepared in accordance with generally accepted
accounting principles ("GAAP") consistently applied in accordance with
the Company's past practices (with the exception of the lack of notes thereto
for the interim Financial Statements) and were prepared from the books and
records of the Company, which books and records are complete and correct in all
material respects and accurately reflect in all material respects all
transactions of the Company's business.  The Financial Statements fairly present
the financial position of the Company as of the dates thereof, and the results
of its operations and cash flows for the periods ended on the dates thereof,
subject to normal year-end audit adjustments.  The reserves set forth in the
Financial Statements are appropriate and adequate for the purposes for which
they were established.  Schedule 2.8 delivered by the Company to
the Acquiror concurrently with the execution of this Agreement sets forth all
assets which the Company believes could become impaired.

SECTION 2.9No Undisclosed
Liabilities.  The Company has no liabilities or obligations of any nature
except (a) liabilities which are fully reflected or reserved against in the
Balance Sheet, (b) liabilities incurred in the ordinary course of business
operations since the date of the Balance Sheet, and (c) liabilities or obligations occurring prior to the date of the Balance
Sheet which, pursuant to GAAP consistently applied in accordance with past
practices of the Company are not required to be set forth in the Balance
Sheet.

SECTION 2.10Absence of Certain Changes.  Since the date of
the Balance Sheet, the Company has conducted its business only in the ordinary
course consistent with past practices and there has not occurred:  (i) any
change, event or condition (whether or not covered by insurance) that has
resulted in, or might reasonably be expected to result in, a Material Adverse
Effect to the Company; (ii) any acquisition, sale or transfer of any asset of
the Company, other than sales of inventory in the ordinary course of business;
(iii) any change in accounting methods or practices (including any change in
depreciation or amortization policies or rates) by the Company or any
revaluation by the Company of any of its assets; (iv) any Material Contract (as
hereinafter defined) entered into by the Company, or any termination or
amendment of, any Material Contract; (v) any amendment to the Company's
Certificate of Incorporation or Bylaws; (vi) any increase in or modification of
the compensation or benefits payable or to become payable by the Company to any
of its officers, directors or employees other than in the ordinary course of
business consistent with past practices; or (vii) any issuance, sale or
pledge of (A) additional shares of the Company's capital stock of any class
(including the Company Shares), or securities convertible into any such shares,
or any rights, warrants or options to acquire any such shares or other
convertible securities, or grant or accelerate any right to convert or exchange
any securities of the Company for shares of capital stock of the Company, or
(B) any other securities in respect of, in lieu of or in substitution for
shares outstanding on the date thereof; (vii) any redemption, purchase or
other acquisition of, any of the Company's outstanding securities (including the
EPITAXX Shares); (viii) any declaration, set aside, or payment of any
dividend or distribution (whether in cash, stock or property) on or in respect
of any share of capital stock of the Company; (ix) any incurrance of any
long-term debt for borrowed money or any short-term debt for borrowed money
other than in the ordinary course of business consistent with past practice and
not in excess of $50,000; (x) any capital expenditures or commitments
thereto in excess of $100,000, individually or in the aggregate; (xi) any
entering into of any new employment agreements with any officers, directors or
employees; (xii) any loan or advance to any of the Company's officers,
directors, consultants, agents or employees or to any member of their families
or any other loan or advance otherwise than in the ordinary course of business;
(xiii) any charitable contributions or any non-business expense; (xiv)
mortgaging, pledging or encumbering any of its assets; (xv) any commencing,
settling or compromising of any litigation; (xvi) any hiring or termination
of employees, other than in the ordinary course of business consistent with past
practices; (xvii) any agreement in writing or orally to take any of the
foregoing actions; or (xviii) any negotiation by the Company to do any of the
things described in the preceding clauses (i) through (xvii) (other than
negotiations with Acquiror and its representatives regarding the transactions
contemplated by this Agreement).

SECTION 2.11Inventories; Products.  All of the Company's
inventory reflected on the Balance Sheet or thereafter acquired (and not
subsequently sold in the ordinary course of business) consist of items of a
quality and quantity useable or saleable in the
ordinary course of the Company's business.  Each item of such inventory is
valued on the Balance Sheet at the lower of cost or market, by the first-in
first-out method, in accordance with GAAP.  The Company's  inventories and
supplies are on the date hereof, and will be on the Closing Date, at normal and
adequate levels for the continuation of such business in the ordinary course of
business consistent with past practice.  There is, to the knowledge of
the Company, no design defect materially adverse to the functionality of any  of
the Company's products which have been shipped to customers (other than products
shipped for testing purposes) and, to the knowledge of the Company, each of such
products contains adequate warnings, presented in a reasonably prominent manner,
in accordance with applicable laws, rules and regulations and current industry
practice with respect to its contents and use.

SECTION 2.12Accounts Receivables.  Subject to any reserves
set forth in the Balance Sheet, the accounts receivable set forth on the Balance
Sheet represent bona fide claims against debtors for sales and other charges,
are collectible in the ordinary course of business consistent with past
practices and are not subject to discount except for normal cash and immaterial
trade discounts.  The amount reserved for doubtful accounts and allowances
disclosed in the Balance Sheet is sufficient to provide for any losses which may
be sustained on realization of the receivables.

SECTION 2.13Taxes.  

(a)Definitions.  For purposes of this Agreement:

(i)The term "Group" shall mean, individually
and collectively, (1) the Company, (2) the Principal Stockholder, and (3)
any individual, trust, corporation, partnership or any other entity as to which
the Company is liable for Taxes incurred by such individual or entity either as
transferee, pursuant to Treasury Regulations Section 1.1502-6, or pursuant to
any other provision of federal, territorial, state, local or foreign law or
regulations.

(ii)The term "Taxes" shall mean all taxes,
however denominated, including any interest, penalties or other additions to tax
that may become payable in respect thereof, imposed by any federal, territorial,
state, local or foreign government or any agency or subdivision of any such
government, which taxes shall include, without limiting the generality of the
foregoing, all income or profits taxes (including, but not limited to, federal
income taxes and state income taxes), payroll and employee withholding taxes,
unemployment insurance, social security taxes, sales and use taxes, ad valorem
taxes, excise taxes, franchise taxes, gross receipts taxes, business license
taxes, occupation taxes, real and personal property taxes, stamp taxes,
environmental taxes, transfer taxes, workers' compensation, Pension Benefit
Guaranty Corporation premiums and other governmental charges, and other
obligations of the same or of a similar nature to any of the foregoing, which
the Group is required to pay, withhold or collect. 

(iii)The term "Returns" shall mean all reports,
estimates, declarations of estimated tax, information statements and returns
relating to, or required to be filed in connection with, any Taxes, including
information returns or reports with respect to backup withholding and other
payments to third parties.

(b)Returns Filed and Taxes Paid.  Except as
disclosed in Schedule 2.13 delivered by the Company to the Acquiror concurrently
with the execution of this Agreement:  All Returns required to be filed by or on
behalf of members of the Group have been duly filed on a timely basis and such
Returns are true, complete and correct.  All Taxes shown to be payable on the
Returns or on subsequent assessments with respect thereto have been paid in full
on a timely basis, and no other Taxes are payable by the Group with respect to
items or periods covered by such Returns (whether or not shown on or reportable
on such Returns) or with respect to any period prior to the date of this
Agreement or an adequate reserve established therefor.  Each member of the Group
has withheld and paid over all Taxes required to have been withheld and paid
over, and complied with all information reporting and backup withholding
requirements, including maintenance of required records with respect thereto, in
connection with amounts paid or owing to any employee, creditor, independent
contractor, or other third party. 

(c)Pre-Closing Date Tax Liabilities Paid.  Except
as disclosed in Schedule 2.13 delivered by the Company to the Acquiror
concurrently with the execution of this Agreement, the Acquiror has paid or will
pay any and all taxes which are imposed on the Company in respect of its income,
business, property or operations or for which the Company may otherwise be
liable (i) for any taxable period ending prior to the Closing Date, (ii) for the
portion of a Straddle Period (as hereinafter defined) ending on the Closing
Date, (iii) resulting by reason of the several liability of the Company pursuant
to Treasury Regulations section 1.1502-6 or any analogous state, local or
foreign law or regulation or by reason of the Company having been a member of
any consolidated, combined or unitary group on or prior to the Closing Date,
(iv) resulting from the Company ceasing to be a member of the affiliated group
(within the meaning of Section 1504(a) of the Code) that includes Principal
Stockholder, (v) in respect of any post-Closing Date period, attributable to
events, transactions, sales, deposits, services or rentals occurring, received
or performed in a pre-Closing Date period, (vi) in respect of any post-Closing
Date period, attributable to any change in accounting method employed by the
Company during any of its four previous taxable years, (vii) in respect of any
post-Closing Date period, attributable to any items of income or gain of a
partnership reporting the Company as a partner, to the extent such items are
properly attributable to periods of the partnership ending on or before the
Closing Date, (viii) attributable to any discharge of indebtedness that may
result from any capital contributions by Principal Stockholder (or an affiliate
of Principal Stockholder) to the Company of any intercompany indebtedness owed
by the Company to Principal Stockholder (or an affiliate of Principal
Stockholder), and (ix) resulting from the making of the Code Section 338
election (or analogous provision of state, local or territorial law); provided,
however, that Principal Stockholder's liability under the foregoing provisions
of this paragraph shall be reduced as to any item to the extent that such item
was specifically and fully reserved for in the Closing Balance Sheet.  For
purposes of this Agreement, "Straddle Period" means a taxable period
which includes, but does not begin or end on, the Closing Date.

(d)Tax Reserves.  Except as disclosed in
Schedule 2.13 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement, the amount of the Company's liability for
unpaid Taxes for all periods ending on or before the date of this Agreement does
not, in the aggregate, exceed the amount of the current liability accruals for
Taxes (excluding reserves for deferred Taxes) solely with respect to the
Company, as such accruals are reflected on the Balance Sheet, and the amount of
the Company's liability for unpaid Taxes for all periods ending on or before the
Closing Date shall not, in the aggregate, exceed the amount of the current
liability accruals for Taxes (excluding reserves for deferred Taxes), as such
accruals are reflected on the Balance Sheet, as adjusted for operations and
transactions in the ordinary course of business since the Balance Sheet date
in accordance with past custom and practice.    

(e)Returns Furnished.  Acquiror has been furnished
by Principal Stockholder or the Company true and complete copies of
(i) relevant portions of income tax audit reports, statements of
deficiencies, closing or other agreements received by the Group or on behalf of
the Group relating to Taxes, and (ii) all federal and state income or
franchise tax returns of the Company (or including the Company) for all periods
ending on and after 1995.   Except as disclosed in Schedule 2.13
delivered by the Company to the Acquiror concurrently with the execution of this
Agreement, the Company is not obligated to file Returns in any jurisdiction
other than those jurisdictions for which Returns have been furnished to
Acquiror.

(f)Tax Deficiencies; Audits; Statutes of
Limitations.  Except as disclosed in Schedule 2.13 delivered by the
Company to the Acquiror concurrently with the execution of this Agreement:  The
returns of the Group have never been audited by a government or taxing
authority, nor is any such audit in process, pending or threatened (either in
writing or verbally, formally or informally).  No deficiencies exist or have
been asserted (either in writing or verbally, formally or informally) or are
expected to be asserted with respect to taxes of the Group, and no member of the
Group has received notice (either in writing or verbally, formally or
informally) or expects to receive notice that it has not filed a return or paid
taxes required to be filed or paid by it.  The Group is neither a party to any
action or proceeding for assessment or collection of taxes, nor has such event
been asserted or threatened (either in writing or verbally, formally or
informally) against the Group or any of its assets.  No waiver or extension of
any statute of limitations is in effect with respect to taxes or returns of the
Group.     

(g)Tax Sharing Agreements.  Except as disclosed in
Schedule 2.13 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement, the Company is not liable for the taxes of any
person pursuant to any tax allocation or tax sharing agreement or pursuant to
any other contract.  The Principal Stockholder and the Company shall, as of the
Closing Date, terminate all tax allocation agreements or tax sharing agreements
with respect to the Company, shall cause any payments required thereunder to be
made, and shall ensure that such agreements are of no further force or effect as
to the Company on and after the Closing Date and there shall be no further
liability of the Company under any such agreement.  

(h)Tax Elections and Special Tax Status.   Except
as disclosed in Schedule 2.13 delivered by the Company to the Acquiror
concurrently with the execution of this Agreement: (A) the Company has not
entered into any compensatory agreements with respect to the performance of
services which payment thereunder would result in a nondeductible expense to the
Group pursuant to Sections 162(m) or 280G of the Code or an excise tax to the
recipient of such payment pursuant to Section 4999 of the Code; (B) neither
the Company nor its Subsidiary has participated in an international boycott as
defined in Code Section 999; (C)  The Company has not agreed, nor is it
required to make, any adjustment under Code Section 481(a) by reason of a
change in accounting method or otherwise; (D) neither the Company nor its
Subsidiary has a permanent establishment in any foreign country, as defined in
any applicable Tax treaty or convention between the United States of America and
such foreign country; (E) neither the Company nor its Subsidiary is a party to
any joint venture, partnership or other agreement, contract or arrangement
(either in writing or verbally, formally or informally) which could be treated
as a partnership for federal income tax purposes; (F) the Company and its
Subsidiary are in compliance with the terms and conditions of any applicable Tax
exemptions, Tax agreements or Tax orders of any government to which it may be
subject or which it may have claimed, and the transactions contemplated by this
Agreement will not have any material effect on such compliance; and (F) the
Subsidiary is, and since its inception has been, an "FSC" within the
meaning of Section 922 of the Code.  

(i)Tax Attributes.   Except as disclosed in
Schedule 2.13 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement:  (A) no portion of any consolidated loss
carryover or consolidated credit carryover of the Group is allocable to the
Company; or (B) the Company has no net operating losses or other tax attributes
presently subject to limitation under Code Sections 382, 383, or 384, or the
federal consolidated return regulations.    

(j)Section 6038A Compliance.  Except as disclosed
in Schedule 2.13 delivered by the Company to the Acquiror concurrently
with the execution of this Agreement: (A) the Company has filed all reports and
has created and/or retained all records required under Section 6038A of the
Code with respect to its ownership by and transactions with related parties; (B)
each related foreign person required to maintain records under Section 6038A
with respect to transactions between the Company and the related foreign person
has maintained such records; (C)  all documents that are required to be created
and/or preserved by the related foreign person with respect to transactions with
the Company are either maintained in the United States, or the Company is exempt
from the record maintenance requirements of Section 6038A with respect to such
transactions under Treasury Regulation section 1.6038A-1; (D) the Company is not
a party to any record maintenance agreement with the Internal Revenue Service
with respect to Section 6038A; and (E) each related foreign person that has
engaged in transactions with the Company has authorized the Company to act as
its limited agent solely for purposes of Sections 7602, 7603, and 7604 of the
Code with respect to any request by the Internal Revenue Service to examine
records or produce testimony related to any transaction with the Company, and
each such authorization remains in full force and effect.    

(k)Section 338 Election.  The Principal
Stockholder has the authority under the Code (and under similar provisions of
state law) to consent to an election under Code Section 338(h)(10) and
similar state elections with respect to any transaction constituting a
"qualified stock purchase" of the Company.

SECTION 2.14Litigation.  Except as set forth on
Schedule 2.14 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement, there is no private or governmental action,
suit, proceeding, claim, arbitration or investigation pending before any agency,
court or tribunal, foreign or domestic, or to the knowledge of the Company,
threatened against the Company or any of its properties or any of its officers
or directors (in their capacity as such).  There is no judgment, decree or order
against the Company, or, to the knowledge of the Company, any of its directors
or officers (in their capacities as such), that could prevent, enjoin, alter or
materially delay any of the transactions contemplated by this Agreement, or that
could reasonably be expected to have a Material Adverse Effect on the Company.
Schedule 2.14 also lists all litigation that the Company has pending
against other parties.

SECTION 2.15Certain Practices.  Neither the Company nor any of
its directors, officers or employees has, directly or indirectly, given or
agreed to give any significant rebate, gift or similar benefit to any supplier,
customer, governmental employee or other person who was, is or may be in a
position to help or hinder the Company (or assist in connection with any actual
or proposed transaction) which (i) could
subject the Company or Acquiror to any damage or penalty in any civil, criminal
or governmental litigation or proceeding, or (ii) if not continued in the
future, could reasonably be expected to have a Material Adverse Effect on the
Company. 

SECTION 2.16Compliance with Law.  The Company is not subject to
any judgment, order, writ, injunction, or decree that materially adversely
affects, individually or in the aggregate, its businesses, operations,
properties, assets or condition (financial or otherwise).  The Company has
complied with and is not in default under, all laws, ordinances, legal
requirements, rules, regulations and orders applicable to it, its operations,
properties, assets, products and services except where the lack of compliance
could not have a Material Adverse Effect on the Company.  There is no existing
law, rule, regulation or order, and the Company is not aware of any proposed
law, rule, regulation or order, whether federal or state, which would prohibit
or materially restrict the Company or Acquiror from, or otherwise have a
Material Adverse Effect on the Company or Acquiror in, conducting the Company's
business in any jurisdiction in which such business is now conducted or proposed
to be conducted.

SECTION 2.17Licenses, Permits and Regulatory Approvals.  The
Company has obtained each federal, state, county, local or foreign governmental
consent, license, permit, grant or other authorization (i) pursuant to which the
Company currently operates or holds any interest in any of its properties or
(ii) that is required for the operation of its business or the holding of any
such interest (the forgoing collectively called the "Governmental
Authorizations"), and all of such Governmental Authorizations are in full
force and effect, except where the failure to obtain or have any such
Governmental Authorizations could not reasonably be expected to have a Material
Adverse Effect on the Company.

SECTION 2.18Labor and Employee Relations.  The Company is not a
party to or bound by any collective bargaining agreement with any labor
organization, group or association covering any of its employees, and the
Company has no knowledge of any attempt to organize any of its employees by any
person, unit or group seeking to act as their bargaining agent.  There are no
pending or threatened charges (by employees, their representatives or
governmental authorities) of unfair labor practices or of employment
discrimination or of any other wrongful action with respect to any aspect of
employment of any person employed or formerly employed by the Company.  No union
representation elections relating to employees of the Company have been
scheduled by any governmental agency or authority, no organizational effort is
being made with respect to any of such employees, and there is no investigation
of the Company's employment policies or practices by any governmental agency or
authority pending or threatened.  The Company is not currently, and has not
within the last three years been, involved in labor negotiations with any unit
or group seeking to become the bargaining unit for any of its employees.  The
Company has not experienced any work stoppages during the last three years, and
no work stoppage is planned.

SECTION 2.19Certain Employees.  Schedule 2.19 delivered
by the Company to the Acquiror concurrently with the execution of this Agreement
sets forth a list of all of the Company's current employees and consultants,
together with the title or job classification of each such person and the base
annual and the total compensation of such person as
of September 22, 1999. The increases, if any, in the base annual and the total
compensation to be paid to such person in fiscal year 2000 shall be consistently
given in the ordinary course of business, in accordance with past practices.
Except as specifically described on Schedule 2.19, none of such
persons has an employment agreement or understanding, whether oral or written,
with the Company which is not terminable on notice by the Company without cost
or other liability to the Company.  No person listed on Schedule 2.19
with an annual salary of at least $75,000 has indicated that he or she intends
to terminate his or her employment with the Company or seek a material change in
his or her duties or status.  All employees and consultants of the Company
have executed and delivered to the Company nondisclosure and proprietary
inventions agreements, in the forms previously provided to the Acquiror by the
Company, all of which agreements are, and after the Effective Time will be, in
full force and effect, binding upon and enforceable against the parties
thereto.

SECTION 2.20Employee Benefits.

(a)Schedule 2.20 delivered by the Company to the
Acquiror concurrently with the execution of this Agreement lists (i) all
"employee benefit plans" within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
(ii) all employment agreements, including, but not limited to, any individual
benefit arrangement, policy or practice with respect to any current or former
employee or director of the Company, and (iii) all other employee benefit, bonus
or other incentive compensation, stock option, stock purchase, stock
appreciation, severance pay, lay-off or reduction in force, change in control,
sick pay, vacation pay, salary continuation, retainer, leave of absence,
educational assistance, service award, employee discount, fringe benefit plans,
arrangements, policies or practices, whether legally binding or not, to which
the Company maintains, contributes to or has any obligation to or liability for
(collectively, the "Plans").   Each Plan provides that it may be
amended or terminated at any time and, except for benefits protected under
Section 411(d) of the Code, all benefits payable to current or terminated
employees or any beneficiary may be amended or terminated by Seller at any time
without liability.  

(b)None of the Plans for any "employment benefit
plan", as that term is used in Section 2.20(a), or any trade or business,
whether or not incorporated, which would be treated as a single employer under
Section 4001 of ERISA or Sections 414(b), (c), (m) or (o) of the Internal
Revenue Code of 1986, as amended (the "Code") ("Member of the
Controlled Group") is (i) a plan described in Section 3(35) of ERISA or a
plan subject to the minimum funding standards set forth in Section 302 of ERISA
and Section 412 of the Code ("Defined Benefit Plan") or (ii) a plan
described in Section 3(37) of ERISA ("Multiemployer Plan") and neither
the Company nor any Member of the Controlled Group has ever  sponsored,
maintained or contributed to, or been obligated to contribute to, a Defined
Benefit Plan or contributed to, or been obligated to contribute to, a
Multiemployer Plan.

(c)The Company does not maintain or contribute to any
welfare benefit plan that provides health benefits to an employee after the
employee's termination of employment or retirement except as required under
Section 4980B of the Code and Sections 601 through 608 of ERISA.

(d)Each Plan which is an "employee benefit
plan", as defined in Section 3(3) of ERISA, has complied in all
material respects since its inception by its terms and in operation with the
requirements provided by any and all statutes, orders or governmental rules or
regulations currently in effect and applicable to the Plan, including but not
limited to ERISA and the Code.  No investigations or audits by a governmental
entity, or other actions, demands, proposals, negotiations or claims with
respect to any Plan have occurred, or are pending, threatened or imminent
against any employer who is participating (or who has participated) in any Plan
or any fiduciary (as defined in Section 3(21) of ERISA) of the Plan or
which otherwise concern matters covered or that would be covered by the Plans.

(e)Each Plan intended to qualify under Section 401(a) of
the Code is the subject of a favorable determination letter issued by the
Internal Revenue Service, which provides that it so qualifies through the last
day of the "TRA 86 Remedial Amendment Period," as such term is defined
in Section 3.02 of Revenue Procedure 96-55 issued by the Internal Revenue
Service.  To the Company's knowledge, nothing has occurred since the date of the
Internal Revenue Service's favorable determination letter that could adversely
affect the qualification of the Plan and its related trust.  The Company has
timely and properly applied for a written determination by the Internal Revenue
Service on the qualification of each such Plan and its related trust under
Section 401(a) of the Code, as amended by the Tax Reform Act of 1986 and
subsequent legislation enacted through the date hereof, and Section 501 of the
Code.

(f)True, correct and complete copies of (i) all documents
creating or evidencing any Plan listed in Schedule 2.20, (ii) all
reports, forms and other documents required to be filed with any governmental
entity (including, without limitation, summary plan descriptions, Forms 5500 and
summary annual reports for all plans subject to ERISA), and (iii) the latest
favorable letters of determination from the Internal Revenue Service with
respect to the Plans that are intended to qualify under Section 401(a) of the
Code have been delivered to Acquiror.

(g)All expenses and liabilities relating to all of the
Plans described in Schedule 2.20 have been, and will on the Closing Date
be, fully and properly accrued on the Company's books and records and disclosed
on the current Financial Statements and such Plans have no unfunded liabilities
not reflected on such current Financial Statements.

SECTION 2.21Title to Property.  The Company has good and
marketable title to all of its properties, interests in properties and assets,
real and personal, reflected in the Balance Sheet or acquired after the date of
the Balance Sheet (except properties, interests in properties and assets sold or
otherwise disposed of since the date of the Balance Sheet in the ordinary course
of business), or with respect to leased properties and assets, valid leasehold
interests in, free and clear of all Liens of any kind or character, except (i)
the Lien of current taxes not yet due and payable, (ii) such imperfections of
title, Liens and easements as do not and will not materially detract from or
interfere with the use of the properties subject thereto or affected thereby, or
otherwise materially impair business operations involving such properties and
(iii) Liens securing debt which is reflected on the Balance Sheet.  The fixed
assets, plants, property and equipment of the Company that are used in the
operations of its business are in good operating condition and repair, subject
to normal wear and tear.  All properties used in the operations of the Company
are reflected in the Balance Sheet to the extent
GAAP applied on a consistent basis require the same to be so reflected.
Schedule 2.21 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement identifies each parcel of real property owned or
leased by the Company.

SECTION 2.22Environmental Matters.

(a)Without limiting Section 2.16,
at all times the Company and its Subsidiary and their businesses and operations
have complied in all material respects with all applicable Environmental Laws
(as hereinafter defined) adopted, imposed or promulgated by any governmental or
regulatory entity having jurisdiction over any property at any time occupied,
owned or leased by the Company or the Subsidiary.  Except as set forth on
Schedule 2.22 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement (i) the Company and the Subsidiary have never
and do not currently generate, use, transport, handle or store any Hazardous
Materials (as hereinafter defined), the proper disposal of which has or will
require any material expenditure by the Company, (ii) there has been no
generation, use, handling, storage or disposal of any Hazardous Materials in
violation of common law or any applicable Environmental Law at any site or
premises owned, occupied or leased, at any time, by the Company or the
Subsidiary, nor (iii) has there been or is there threatened any release of any
Hazardous Materials on or at any such site or premises in violation of common
law or any applicable Environmental Law or which created or will create an
obligation to report or remediate such release, which release or failure to
report or remediate could have a Material Adverse Effect on the Company.
All environmental licenses, permits, clearances, covenants and authorizations
required for the Business have been obtained by the Company and are in full
force and effect.  No wastes generated by the Company or Subsidiary have ever
been sent directly or, to the Company's knowledge, indirectly to any site listed
or formally proposed for listing federal or state list of hazardous substances
sites requiring investigation or clean-up.  Except as set forth on Schedule 2.22
delivered by the Company to the Acquiror concurrently with the execution of this
Agreement, the Company has no knowledge that any property at any time occupied,
owned or leased by the Company or Subsidiary, including, without limitation, the
soil and groundwater on or under such property, has been contaminated by
Hazardous Materials.  Neither the Company nor the Subsidiary has received from
any governmental authority or third party any requests for information, notices
of claim, demand letters, or other notification that they or it are or is or may
be potentially responsible with respect to any investigation or clean-up of
Hazardous Materials.  There is no fact or circumstance that to the knowledge of
the Company would be likely to involve the Company, Subsidiary or Acquiror in
any environmental litigation or proceeding or impose any environmental liability
upon the Company, Subsidiary or Acquiror.

(b)The Company has previously
made available to the Acquiror copies of (i) all environmental surveys and
audits, risk assessments, tests and reports in its possession (or reasonably
obtainable by it) performed with respect to the property currently occupied,
owned or leased by the Company or the Subsidiary by or on behalf of the Company
or the Subsidiary (including, without limitation, all soil and groundwater
surveys, tests and reports), (ii) all other documents in its possession (or
reasonably obtainable by it) concerning any environmental or health and safety
matter that could have a Material Adverse Effect on the Company, if any, and
(iii) copies of any documentation in its possession (or reasonably obtainable by
it) regarding off-site disposal of Hazardous Materials, spill control plans and
material correspondence with any governmental agency regarding the
foregoing.

(c)As
used in this Agreement, the term "Hazardous Materials" shall mean any
pollutant, hazardous substance, hazardous material, hazardous waste or toxic
waste, as defined in or regulated by any current Environmental Law.   The
term "Environmental Laws" means any federal, state or local statute,
law, regulation, rule or ordinance, and any judicial interpretation thereof,
regulating the use, generation, handling, storage, transportation, discharge,
emission, spillage or other release of Hazardous Materials or relating to the
protection of the environment.

SECTION 2.23Insurance.  The Company is, and will be through the
Closing, adequately insured with responsible insurers in respect of its
properties, assets and businesses against risks normally insured against by
companies in similar lines of business under similar circumstances.  Schedule
2.23 delivered by the Company to the Acquiror concurrently with the
execution of this Agreement correctly describes (by type and amount of coverage)
the insurance coverage carried by the Company, which insurance will remain in
full force and effect with respect to all events occurring prior to the Closing.
The Company has not  failed to give any notice or present any claim under any
such policy or binder in due and timely fashion, has not  received notice of
cancellation or non-renewal of any such policy or binder, is not aware of any
threatened or proposed cancellation or non-renewal of any such policy or binder,
has not received notice of any insurance premiums which will be materially
increased in the future, nor is aware of any insurance premiums which will be
materially increased in the future.  There are no outstanding claims under any
such policy which have gone unpaid for more than 45 days, or as to which the
insurer has disclaimed liability.

SECTION 2.24Material
Contracts.  

(a)Schedule 2.24(a)
delivered by the Company to the Acquiror concurrently with the execution of this
Agreement sets forth a description of all Material Contracts.  Except as
disclosed in Schedule 2.24(a), all of the Material Contracts are valid,
binding and enforceable in accordance with their terms and in full force and
effect.  Except as otherwise indicated on Schedule 2.24(a), the Company
is not, and to the knowledge of the Company, no other party to such Material
Contracts is, in material default thereunder, and to such knowledge, no event
has occurred or is threatened to occur, which, with or without the lapse of time
or the giving of notice or both, would constitute a material default thereunder.
For the purposes of this Agreement, the term "Material Contract" shall
mean:

(i)any agreement or series of related agreements
requiring aggregate payments after the date hereof by or to the Company of more
than $50,000;

(ii)any agreement with any labor union or association
representing any employee of the Company;

(iii)any agreement for the purchase or sale of materials,
supplies, equipment, merchandise or services that contains an escalation,
renegotiation or redetermination clause or that obligates the Company to
purchase all or substantially all of its requirements of a particular product
from a supplier, or for periodic minimum purchases of a particular product from
a supplier; 

(iv)any agreement for sale of any of the assets or
properties of the Company other than in the ordinary course of business or for
the grant to any person of any options, rights of first refusal, or preferential
or similar rights to purchase any such assets or properties; 

(v)any partnership, joint venture or similar
agreement;

(vi)any agreement of surety, guarantee or
indemnification, other than agreements in the ordinary course of business with
respect to obligations in an aggregate amount not in excess of $50,000;

(vii)any agreement containing covenants of the Company
not to compete in any line of business, in any geographic area or with any
person or covenants of any other person not to compete with the Company or in
any line of business of the Company;

(viii)any license relating to Company Proprietary Rights
(as hereinafter defined) and any other agreement granting or restricting the
right of the Company to use any Company Proprietary Rights or other intellectual
or intangible property;

(ix)any agreement relating to the acquisition by the
Company of any operating business or the capital stock of any other person;

(x)any agreement requiring the payment to any person of a
brokerage or sales commission or a finder's or referral fee (other than
arrangements to pay commission or fees to employees in the ordinary course of
business);

(xi)any agreement or note relating to or evidencing
outstanding indebtedness for borrowed money;

(xii)any lease, sublease or other agreement under which
the Company is lessor or lessee of any real property; and

(xiii)any lease relating to equipment or other tangible
property with respect to obligations in excess of $50,000; and

(xiv)any other agreement material to the Company.  

(b)Except
as set forth on Schedule 2.24(b) delivered by the Company to the Acquiror
concurrently with the execution of this Agreement, no consent, waiver or
approval is required from, and no notification is required to be provided to,
any party to a Material Contract in connection with the execution and delivery
of this Agreement or the consummation of the transactions contemplated
thereby.

SECTION 2.25Intellectual
Property.  Except as disclosed in Schedule 2.25 delivered by
the Company to the Acquiror concurrently with the execution of this Agreement,
the Company owns, or possesses valid, binding and enforceable licenses to use,
or otherwise has the valid, binding and enforceable right to use, all patents,
trademarks, service marks, trade names, trade secrets, franchises, and
copyrights, and all applications for any of the foregoing, and all technology,
inventions, know-how and processes necessary for the conduct of its business as
presently conducted (collectively, the "Company Proprietary Rights").
A list of all registered copyrights, trademarks, trade names and patents, and
all applications therefor, included in the Company Proprietary Rights, has been
previously delivered to the Acquiror.  Schedule 2.25 lists all licenses,
agreements, obligations and contracts relating to the Company Proprietary Rights
to which the Company is a party or by which the Company is bound.  All
registrations of the Company Proprietary Rights are valid and subsisting and all
necessary registration and renewal fees in connection with such registrations
have been filed with the relevant patent, copyright and trademark authorities in
the United States for the purposes of maintaining such registrations.  The Company has complied with all applicable disclosure
requirements and, to the Company's knowledge, neither the Company nor any named
inventor or assignee has committed any fraudulent act in the application for or
maintenance of any patent, trademark or copyright of the Company.  Other than
Company Proprietary Rights licensed by the Company from third parties, as
identified on Schedule 2.25, the Company owns all Company Proprietary Rights
free and clear of all Liens.  No Company Proprietary Rights or product and/or
technology of the Company is subject to any outstanding decree, order, judgment,
stipulation, license or agreement restricting in any material manner the use or
licensing thereof by the Company.  Neither the execution or delivery of this
Agreement nor the consummation of the transactions contemplated hereby will
limit, impair or otherwise affect, in any manner, any of the Company's right,
title or interest in or to or use of any of the Company Proprietary Rights.
Except as disclosed in Schedule 2.25 delivered by the Company to the Acquiror
concurrently with the execution of this Agreement, neither the Company's
products (nor the manufacture, distribution or sale thereof), designs,
developments or processes nor the operation of the business of the Company as
presently conducted, misappropriates or infringes upon the proprietary rights of
others, nor has the Company received any notice or claim from any third party of
such misappropriation or infringement by the Company. Except as disclosed in
Schedule 2.25 delivered by the Company to the Acquiror concurrently with the
execution of this Agreement, the Company has no knowledge of any infringement by
any third party on, or any competing claim of right to use or own any of, the
Company Proprietary Rights.  The Company has no knowledge that any of the
activities of the employees or consultants of the Company on behalf of the
Company violates any agreements or arrangements which any such employees or
consultants have with former employers in a way which would have a Material
Adverse Effect on the business of the Company.

SECTION 2.26Proprietary Information of Third Parties.  No third party has claimed or, to the knowledge of the
Company, has reason to claim that any person employed by or affiliated with the
Company has (i) violated or may be violating any of the terms or conditions
of such person's employment, non-competition or non-disclosure agreement with
such third party, (ii) disclosed or may be disclosing or utilized or may be
utilizing any trade secret or proprietary information or documentation of such
third party, or (iii) interfered or may be interfering in the employment
relationship between such third party and any of its present or former
employees.  No third party has requested information from which the Company
suggests that such a claim might be contemplated.

SECTION 2.27Significant Customers and Suppliers.  Set forth on
Schedule 2.27 delivered by the Company to the Acquiror concurrently with
the execution of this Agreement is a list of the ten (10) largest customers and
the ten (10) largest suppliers of the Company as of  August 31, 1999 and
September 23, 1999, respectively, together with the amount of sales or payments
attributable to such customers or suppliers expressed in dollars.  Except as set
forth on Schedule 2.27, no customer or supplier has terminated,
materially reduced or threatened to terminate or materially reduce its purchases
from or provision of products or services to the Company, as the case may be.
Copies of the standard forms of purchase or supply contracts of the Company and
sales contracts are set forth in Schedule 2.27.

SECTION 2.28Assumptions, Guaranties, Etc. of Indebtedness of Other
Persons.  The Company has not assumed,
guaranteed, endorsed or otherwise become directly or contingently liable on any
indebtedness of any other person (including, without limitation, liability by
way of agreement, contingent or otherwise, to purchase, to provide funds for
payment, to supply funds to or otherwise invest in the debtor, or otherwise to
assure the creditor against loss), except for guaranties by endorsement of
negotiable instruments for deposit or collection in the ordinary course of
business.

SECTION 2.29Transactions With Affiliates.  No director, officer
or employee of the Company, or member of the family of any such person, or any
corporation, partnership, trust or other entity in which any such person, or any
member of the family of any such person, has a substantial interest or is an
officer, director, trustee, partner or holder of any equity interest, is a party
to any transaction with the Company, including any contract, agreement or other
arrangement providing for the employment of, furnishing of services by, rental
of real or personal property from or otherwise requiring payments or involving
other obligations to any such person or firm.

SECTION 2.30Records and Bank Accounts.  The minute books, stock
certificate books and stock transfer ledgers of the Company are complete and
correct in all material respects with respect to the matters set forth therein
and have been maintained in a manner consistent with good business
practice.  Schedule 2.30 delivered by the Company to the Acquiror
concurrently with the execution hereof identifies all bank and brokerage
accounts of the Company, whether or not such accounts are held in the name of
the Company, lists the respective signatories therefor and lists the names of
all persons holding a power of attorney from the Company and a summary of the
terms thereof. 

SECTION 2.31Commissions and
Fees.  Except for fees payable to Soundview Technology Group, Inc., there
are no valid claims for brokerage commissions or finder's or similar fees in
connection with the transactions contemplated by this Agreement which may be now
or hereafter asserted against the Acquiror resulting from any action taken by
the Company or its stockholders, officers, directors or agents.

SECTION 2.32Year 2000
Compliance. Except as set forth in Schedule 2.32 delivered by the
Company to the Acquiror concurrently with the execution of this Agreement the
Company has no knowledge that any of its systems (including, without limitation,
the Company's telecommunications, automation and computer related systems),
assets or technology, including without limitation, the Company Proprietary
Rights (including, without limitation, all computer software and hardware owned
or licensed by the Company or used in its business) has or will have any Year
2000 Error (as hereinafter defined).  For the purposes hereof, the term
"Year 2000 Error" means (a) any failure of computer hardware or
software products or technology properly to record, store, process, calculate or
present calendar dates falling on and after (and if applicable, spans of time
including) January 1, 2000 as a result of the occurrence, or use of
data consisting of, such dates; (b) any failure of computer hardware or
software products or technology to calculate any information dependent on or
relating to dates on or after January 1, 2000 in the same manner, and with the
same functionality, data integrity and performance, as such computer hardware or
software products or technology records, stores, processes, calculates and
presents calendar dates on or before December 31, 1999, or information dependent
on or relating to such dates; or (c) any loss of functionality or
performance with respect to the introduction of records or processing of data
containing dates falling on or after January 1, 2000.

SECTION 2.33Representations
Complete.  The representations and warranties of the Company and the
Stockholders contained in this Article II do not contain any untrue
statement of a material fact and do not omit to state any material fact
necessary to make such representations and warranties, in light of the
circumstances under which they were made, not misleading.  

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

Each of the Stockholders, severally, but not jointly, represents
and warrants to Acquiror as follows:

SECTION 3.1Ownership of EPITAXX Shares.  Such
Stockholder is the record and beneficial owner of all of the EPITAXX Shares
listed as owned by such Stockholder on Schedule 2.3, and such EPITAXX
Shares are owned by such Stockholder free and clear of all liens, claims,
encumbrances, interests and rights in others.  Except as set forth on
Schedule 2.3, such Stockholder has no options, warrants, subscriptions,
calls, convertible securities, stock appreciation rights (phantom or otherwise)
or other interests or rights of any nature relating to the capital stock of the
Company.

SECTION 3.2Authority to Execute and Perform
Agreement.  Such Stockholder has the full legal right, capacity, power and
all authority and approval required by law and its organizational documents, if
applicable, to enter into this Agreement and to perform its obligations
hereunder.  Such Stockholder has duly executed and delivered this Agreement, and
this Agreement is the legal, valid and binding obligation of such Stockholder
enforceable in accordance with its terms.  

SECTION 3.3Investment Representations.  Such
Stockholder has had the opportunity to discuss the transactions contemplated
hereby with Acquiror and has had the opportunity to obtain such information
pertaining to Acquiror, its business, operations, and finances as has been
requested, including but not limited to filings made by Acquiror with the SEC
under the Securities Exchange Act of 1934, as amended (the "Exchange
Act").  Such Stockholder is an "accredited investor" within the
meaning of Regulation D promulgated under the Securities Act of 1933, as amended
(the "Securities Act").  Such Stockholder has such knowledge and
experience in business or financial matters that he or she is capable of
evaluating the merits and risks of an investment in the Acquiror.  Such
Stockholder (i) is acquiring the Acquiror Common Stock for purposes of
investment and has no present intention to distribute such Acquiror Common
Stock, (ii) it has no contract, undertaking, agreement or arrangement to
sell or otherwise transfer or dispose of any Acquiror Common Stock or any
portion thereof to any person or entity and (iii) he or she can bear the
economic risk of losing his or her investment in the Acquiror Common Stock and
has adequate means for providing for its current financial needs and
contingencies. 

SECTION 3.4No Knowledge of Breach.  Such
Stockholder is not aware (without any investigation or inquiry) that any of the
representations or warranties set forth in Article II is untrue in any material
respect.

ARTICLE Iv

REPRESENTATIONS AND WARRANTIES
OF ACQUIROR AND NEWCO

Acquiror and Newco represent and warrant to the Company and
the Stockholders as follows:

SECTION 4.1Investment Intent.  Acquiror is acquiring the
EPITAXX Shares for its own account and not with the view to the  distribution
thereof.

SECTION 4.2Organization.  Acquiror is duly incorporated,
validly existing and in good standing under the laws of the State of Delaware
and is duly qualified to transact business as a foreign corporation in each
jurisdiction in which the failure to so qualify would have a material adverse
impact on Acquiror's ability to purchase the EPITAXX Shares.  Newco is duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware.

SECTION 4.3Power and Authority.  Each of Acquiror and Newco has
the corporate power and authority to execute, deliver and perform this Agreement
and the other documents and instruments contemplated hereby.  Subject to the
conditions set forth in Article VI which shall be satisfied prior to the Closing
if Closing occurs, (i) the execution, delivery and performance of this Agreement
and the documents contemplated hereby and the consummation of the transactions
contemplated hereby and thereby have been duly authorized and approved by each
of Acquiror and Newco and (ii) when executed and delivered by Acquiror and Newco
shall have been duly executed and delivered by, and constitute the valid and
binding obligation of each of Acquiror  and Newco enforceable against each of
them in accordance with their terms.

SECTION 4.4Validity, Etc.  Neither the execution and delivery
of this Agreement and the other documents and instruments contemplated hereby,
the consummation of the transactions contemplated hereby or thereby, nor the performance of this Agreement and such other agreements
in compliance with the terms and conditions hereof and thereof will
(i) conflict with or result in any breach of any trust agreement,
certificate of incorporation, bylaw, judgment, decree, order, statute or
regulation applicable to Acquiror or Newco; (ii) require any consent,
approval, authorization or permit of, or filing with or notification to, any
governmental or regulatory authority, other than any notification and approval
required under the HSR Act; (iii) result in a breach of or default (or give
rise to any right of termination, cancellation or acceleration) under any law,
rule or regulation or any judgment, decree, order, governmental permit, license
or order or any of the terms, conditions or provisions of any mortgage,
indenture, note, license, agreement or other instrument to which Acquiror or
Newco is a party; or (v) violate any order, writ, injunction, decree,
statute, rule or regulation applicable to Acquiror or Newco which in the case of
any of (i) - (v), would materially impair Acquiror or Newco's ability to
consummate the transactions contemplated hereby.

SECTION 4.5Corporate Status.  Each of Acquiror and Newco has
the corporate power and authority to own, lease and operate all of its
properties and to carry on its business as it is now being
conducted.

SECTION 4.6Acquiror
Subsidiaries; Newco Common Stock.  The
Acquiror indirectly owns, beneficially and of record, all of the issued and
outstanding shares of Newco, all of which are validly issued and outstanding,
fully paid and nonassessable, free and clear of all Liens and encumbrances.  The
Acquiror has the corporate power to cause the endorsement and surrender such
shares of Newco Common Stock for cancellation pursuant to the Plan of Merger.
The Acquiror has taken all such actions as may be required in its capacity as
the indirect sole stockholder of Newco.  Acquiror is the sole record and
beneficial owner of all of the outstanding capital stock of Uniphase Holdings,
Inc., which in turn is the sole record and beneficial owner of all of the
outstanding capital stock of Newco.

SECTION 4.7Reports.  Acquiror has previously furnished or made
available to the Stockholders true and complete copies of (i) its most recent
Annual Report on Form 10-K as filed with the Securities Exchange Commission
("SEC") for its fiscal year ended June 30 , 1999, and (ii) all
other reports and registration statements filed by Acquiror with the SEC since
June 30, 1999 (all such documents included in (i) and (ii) above being
collectively referred to as the "Acquiror SEC Documents").  As of
their respective dates, the Acquiror SEC Documents did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.  Since June 30, 1999,
Acquiror has timely filed with the SEC all reports, registration statements and
other filings required to be filed with the SEC under Section 13(a) of the
Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and the rules and regulations promulgated
thereunder.  As of their respective filing dates, the description of the
business, operations and financial condition of the Acquiror contained in the
Acquiror SEC Documents complied in all material respects with the applicable
requirements of the Securities Act and the Exchange Act, and the rules and
regulations promulgated under such statutes.  The consolidated financial
statements contained in the Acquiror SEC Documents, together with the notes
thereto, have been prepared in accordance with GAAP consistently followed
throughout the periods indicated therein (except as indicated in the notes to
such financial statements and further subject, in the case of unaudited
statements, to normal, necessary year-end adjustments).  The balance sheet of
the Acquiror at except as indicated in the notes to such financial statements
and further included in the Acquiror's 10-K is herein referred to as the
"Acquiror Balance Sheet".

SECTION 4.8Subsequent Events. Except as disclosed in the
Acquiror SEC Documents or as otherwise permitted hereunder, the Acquiror has
not, since the date of the Acquiror Balance Sheet incurred any Material Adverse
Change.

SECTION 4.9Legal
Proceedings. Except as described in the Acquiror SEC Documents, there
is no pending litigation, governmental investigation, condemnation or other
proceeding against or relating to or affecting the Acquiror or the transactions
contemplated by this Plan of Merger for which the Acquiror is uninsured or
which, if resolved adversely to the Acquiror, would have, individually or in the
aggregate, a Material Adverse Effect on the Acquiror.  

SECTION 4.10Commissions and
Fees.  There are no claims for brokerage commissions, investment bankers'
fees or finder's fees in connection with the transactions contemplated by this
Agreement resulting from any action taken by the Acquiror or any of its
stockholders, officers, directors or agents.

SECTION 4.11Status of Acquiror
Stock.  Each share of Acquiror Common Stock issued to the Stockholders
pursuant to this Agreement will be, when so issued, duly authorized, validly
issued, fully paid and nonassessable.

SECTION 4.12Representations Complete.  The
representations and warranties of the Acquiror and Newco contained in this
Article IV do not contain any untrue statement of a material fact and do
not omit to state any material fact necessary to make such representations and
warranties, in light of the circumstances under which they were made, not
misleading.  

ARTICLE V

COVENANTS OF EPITAXX AND THE PRINCIPAL
STOCKHOLDER

EPITAXX and the Principal Stockholder covenant and agree
with Acquiror as follows:

SECTION 5.1Cooperation; Consents.  The Principal Stockholder
shall cause the Company to timely perform and fulfill, all covenants and
obligations to be fulfilled or performed by the Company hereunder.  The
Principal Stockholder and the Company shall use their reasonable best efforts to
satisfy all of the conditions to Closing set forth in Article VII to the end
that the transactions contemplated hereby will be fully and timely
consummated.  On or prior to the Closing Date, the Company and the
Principal Stockholder shall (a) notify all persons required to be notified
pursuant to applicable law or any of the Governmental Authorizations or
contracts to which the Company is a party of the transactions contemplated
hereunder, in the form and manner required thereunder, and (b) obtain the
consent of all persons whose consent is required pursuant to applicable law or
any of the Governmental Authorizations or contracts to which the Company is a
party in connection with the consummation of the transactions contemplated
hereby, in the form and manner required thereunder, including, without
limitation, the all required consents under the HSR Act.

SECTION 5.2Access.  Until the Closing, the Company shall give
Acquiror, its attorneys, accountants and other authorized representatives
complete access to its offices, properties, customers, suppliers, employees,
products, technology, business and financial records, contracts, business plans,
budgets and projections, agreements, commitments and other documents and
information concerning the Company and persons employed by or doing business
with the Company for the purposes of confirming the accuracy of the
representations and warranties made by the Company herein.  

SECTION 5.3Insurance. Until the Closing, the Company shall
maintain with financially sound and reputable insurers, insurance against such
casualties and contingencies and of such types and in such amounts as is
customary for companies similarly situated.

SECTION 5.4Compliance with Laws.  Until the Closing, the
Company shall conduct its business in compliance with all applicable laws,
rules, regulations and orders.  

SECTION 5.5Keeping of Books and Records.  Until the Closing,
the Company shall keep adequate records and books of account, in which complete
entries will be made in accordance with GAAP consistently applied, reflecting
all financial transactions and in which all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in
connection with its business shall be made.

SECTION 5.6Actions Prior to Closing.  The Company shall conduct
its business pending the Closing only in the ordinary and usual course of
business consistent with past practice.  Without limiting the generality of the
foregoing, the Company shall conduct its business in a manner such that on the
Closing Date the Company will have no obligations or liabilities (fixed or
contingent) except (a) those consistent with the representation and
warranty made in Section 2.10 of this Agreement and (b) those incurred in
the ordinary course of business consistent with past practice after the date of
the Balance Sheet and prior to the Closing Date and reflected accurately in its
books and records.  Except as expressly contemplated by this Agreement or as
consented to in writing by Acquiror, which consent shall not be unreasonably
withheld or delayed, during the period from the date of this Agreement to the
Closing Date, the Company shall not (i) issue,
sell or pledge, or authorize or propose the issuance, sale or pledge of (A)
additional shares of capital stock of any class (including the EPITAXX Shares),
or securities convertible into any such shares, or any rights, warrants or
options to acquire any such shares or other convertible securities, or grant or
accelerate any right to convert or exchange any securities of the Company for
shares of capital stock of the Company, or (B) any other securities in
respect of, in lieu of or in substitution for shares outstanding on the date
thereof; (ii) redeem, purchase or otherwise acquire, any of its outstanding
securities (including the Company Shares); (iii) declare, set aside, make
or pay any dividend or distribution (whether in cash, stock or property) on or
in respect of any share of capital stock of the Company; (iv) (A) make any
acquisition of assets or securities, any disposition of assets or securities or
any change in its equity capitalization or long term indebtedness, or
(B) enter into, terminate or modify any contract or release or relinquish
any contract or other rights except with respect to product sales made in the
ordinary course of business; (v) incur any long-term debt for borrowed
money or any short-term debt for borrowed money other than in the ordinary
course of business consistent with past practice and not in excess, individually
or in the aggregate, of $50,000; (vi) propose or adopt any amendments to
its Certificate of Incorporation or By-Laws; (vii) enter into any new employment
agreements with any officers, directors or employees or grant any increases in
the compensation or benefits to, or agree to pay any bonus, severance or
termination payment or other special compensation to, officers, directors and
employees; (viii) make any loan or advance to any of its officers,
directors, consultants, agents or employees or to any member of their families
or any other loan or advance otherwise than in the ordinary course of business;
(ix) make or incur any charitable contributions or any non-business expense; (x) mortgage, pledge or encumber any of its
assets; (xi) introduce or modify the Company's accounting practices, including,
without limitation, with respect to the treatment of inventory; (xii) commence,
settle or compromise any litigation; (xiii) hire or terminate employees except
in the ordinary course of business consistent with past practices; (xiv) making
any capital expenditures or commitments therefor in excess of $100,000,
individually or in the aggregate; or (xv) agree in writing or orally to
take any of the foregoing actions or any other action which would have made any
representation or warranty in this Agreement untrue in all material
respects.

SECTION 5.7Notice of Changes.  Until the Closing, the Company
shall notify Acquiror of any material change in the business of the Company as
soon as it becomes apparent to the Company that any such change has or may
occur.  

SECTION 5.8Preservation of Business.  Until the Closing, the
Company and the Principal Stockholder will cause the Company to use its best
efforts to preserve its business organization intact, and to preserve its
goodwill.  Without limiting the generality of the foregoing, the Company will,
and the Principal Stockholder will cause the Company to, timely perform all
obligations required of the Company or the Principal Stockholder under the
contracts and permits listed on the Schedules to this Agreement.

SECTION 5.9Litigation.  Until the Closing, the Company will
promptly notify Acquiror of any lawsuits, claims, proceedings or investigations
which are threatened or commenced against or by the Company, the Principal
Stockholder or their affiliates, or against any employee, consultant or director
of the Company.  

SECTION 5.10Continued Effectiveness of Representations and
Warranties.  Without limiting Section 4.6, from the date hereof up to and
including the Closing Date, (i) the Company will conduct its business in a
manner such that the representations and warranties contained herein shall
continue to be true and correct on and as of the Closing Date as if made on and
as of the Closing Date as and to the extent required by Section 7.2, and
(ii) the Principal Stockholder will advise Acquiror promptly in writing of
any condition or circumstance occurring from the date hereof up to and including
the Closing Date which could cause any representation or warranty of the
Principal Stockholder to become untrue.  No such notice shall modify, limit
or impair, in any manner, (a) any representation or warranty of the Company or
the Principal Stockholder made hereunder or in connection herewith, or (b) any
rights or remedies of Acquiror with respect to any breach thereof.  

SECTION 5.11Obligations of Affiliates.  Except as specifically
set forth herein, on or before the Closing Date, the Company will cause its
affiliates to (i) cause all debts, claims and other obligations owed or
required to be performed by any Stockholder (or any affiliate of such
Stockholder) to the Company, or by the Company to any Stockholder or affiliate
of any stockholder, to be paid or discharged in full and (ii) except as provided
in this Section 5.11, terminate any ongoing agreements between the Company on
the one hand and its affiliates on the other, all without any expense to the
Company (or any reduction in the gross assets reflected on the Balance Sheet or
acquired since the date thereof) so that following the Closing Date the Company
shall have no obligations of any kind or nature to the Stockholders or their
affiliates except for those specified in this Agreement, provided, however, that
the liability of the Company to the Principal Stockholder in the amount of
$4,250,000 plus interest in respect of indebtedness for borrowed money and the
amount of $1,029,273 in respect of the Company's obligations under its Tax
Sharing Agreement with the Company (as reduced to reflect amounts paid by or
accrued against the Company prior to the Closing Date) may, at the election of
Acquiror, be paid of or prior to the Closing or continue as obligations of the
Company to be discharged in accordance with their terms subsequent to the
Closing.  Notwithstanding the foregoing, the following agreements, each
in the form made available to Acquiror, between the Company and the parent
corporation of the Principal Stockholder, Nippon Sheet Glass Company Ltd.
("NSG") shall remain in full force and effect after the Closing Date
as follows: (x) that certain Research and Development Agreement, dated as of
April 1, 1997, shall remain in effect for two (2) years following the Closing
Date (and thereafter be terminable on ninety (90) days notice) and continue to
provide for the performance of Research and Development Services (as defined
therein) by NSG, which shall be performed in a manner consistent with prior
practice pursuant to such agreement and which shall consist of the supply of
approximately 20 wafers per year for a payment by the Company of $100,000 per
year; (y) NSG will continue for a period of two (2) years following the Closing
Date to supply to the Company, for the Company's 2.5 and 10 gigabit avalanche
photodetector receiver products, epitaxial wafers in a manner consistent with
prior practices at a price per wafer of $18,000; and (z) the Distribution
Agreement, dated as of April 1, 1997 shall continue following the Closing Date
and be terminable in accordance with its terms or otherwise at any time on
ninety (90) days prior notice given by either NSG or the Company.  

SECTION 5.12No Negotiations.  Until the Closing Date, or the
earlier termination of this Agreement in accordance with its terms, neither the
Company, the Principal Stockholder nor any of their affiliates, advisors, agents
or investment bankers shall, directly or indirectly, initiate discussions with,
engage in negotiations with, enter into any agreement with, or provide any
information to, any corporation, partnership, person or other entity or group
involving the possible sale, directly or indirectly, transfer or joint venture
of the Company, its business or assets, or the capital stock of the Company to
any person or entity other than Acquiror.  The Company shall immediately
notify Acquiror of any solicitation or inquiry made by any third party with
respect to any such sale.

SECTION 5.13Non-Competition
and Employment Agreements.  At the Closing, each of James D. Coleman, Yves
Dzialowski, George Roshon, Alka Swanson and Mark Itzler (the "Applicable
Employees") will enter into (a) a Non-Competition and Confidentiality
Agreement (each, a "Noncompetition and Confidentiality Agreement") in
substantially the form of Exhibit A, and (b) (i) amendments (the
"Employment Agreement Amendments") to their current employment
agreements (the "Employment Agreements") in substantially the form of
Exhibit B, or if they are not currently parties to such
Employment Agreement, new employment agreements (the "New Employment
Agreements") substantially in form and content as the Employment
Agreements, as amended by the Employment Agreement Amendments.  

SECTION 5.14Resignations.  The Company will, to the extent that
Acquiror so requests, cause its officers and directors of the Company and the
trustees and administrators of each Employee Plan to resign on or before the
Closing Date.

SECTION 5.15Section 338 Elections.  

(a)If requested by Acquiror, Acquiror and Principal
Stockholder shall join in an election to have the provisions of Section
338(h)(10) of the Code and similar provisions of state law ("Section 338
Elections") apply to the acquisition of the Company. Acquiror shall be
responsible for, and control, the preparation and filing of such election.  The
allocation of purchase price among the assets of the Company shall be made in
accordance with Code Sections 338 and 1060 and any comparable provisions of
state, local or foreign law, as appropriate.  Principal Stockholder shall,
unless it would be unreasonable to do so, accept Acquiror's good faith
determination of such purchase price allocations and shall report, act, file in
all respects and for all purposes consistent with such good faith determination
of Acquiror.  Principal Stockholder shall execute and deliver to Acquiror such
documents or forms (including Section 338 Forms, as defined below) as Acquiror
shall request or as are required by applicable law for an effective Section 338
Election.  "Section 338 Forms" shall mean all returns, documents,
statements, and other forms that are required to be submitted to any federal,
state, county or other local taxing authority in connection with a Section 338
Election, including, without limitation, any "statement of Section 338
election" and IRS Form 8023 (together with any schedules or attachments
thereto) that are required pursuant to Treasury Regulations.

(b)Principal Stockholder shall be responsible for and
shall pay any income, franchise or similar taxes arising as a result of any
Section 338 Election or any comparable or resulting election under state law
filed by Acquiror or Principal Stockholder.

SECTION 5.16Environmental Clearance.  Without
limiting Section 5.1, prior to the Closing, the Company shall obtain, with
respect to the West Trenton, New Jersey facility owned by the Company (the
"Facility"), from the New Jersey Department of Environmental
Protection ("NJDEP") any of a Letter of Nonapplicability, an approval
of a Negative Declaration, or any other confirmation of an approval, waiver or
exemption from NJDEP stating that the Facility is not subject to the Industrial
Site Recovery Act, N.J.S.A. 13:1K-6 et seq. ("ISRA"), any
successor legislation and regulation, as well as the regulations promulgated
pursuant to the Environmental Cleanup Responsibility Act, N.J.S.A. 13:1K-6 et
seq.  Notwithstanding the foregoing, the Acquiror shall be obliged to waive
compliance with the foregoing upon the receipt by the Company of any interim
determination, order or ruling, including but not limited to NJDEP's issuance of
a remediation agreement, permitting the consummation of the transactions
contemplated herein.  

ARTICLE VI

COVENANTS OF ACQUIROR, THE COMPANY

AND THE STOCKHOLDERS

SECTION 6.1Cooperation.  Acquiror shall timely perform and
fulfill all covenants and obligations to be fulfilled or performed by it
hereunder.  Acquiror shall use its reasonable best efforts to satisfy all of the
conditions set forth in Article VIII, to the end that the transactions
contemplated hereby will be fully and timely consummated.

SECTION 6.2Publicity.  Between the date hereof and the Closing
Date, Acquiror, the Stockholders and the Company agree that, except as required
by applicable Federal and state securities laws and regulations, each
(a) will make no (and will cause its affiliates not to make any) public
announcement of further progress regarding the
transactions contemplated hereby without the prior written consent of the other,
(b) will respond to all inquiries with respect to further progress
regarding the transactions contemplated hereby by stating that its policy is to
not comment on such matters, (c) will institute procedures to restrict
knowledge of further progress regarding the transactions contemplated hereby to those who need to know,
(d) will use its reasonable efforts to insure that no person who has
knowledge of further progress regarding the proposed transactions contemplated
hereby through it will trade in the securities of Acquiror, and (e) will
notify the other of any rumor with respect to the transactions contemplated
hereby received by it.  In the event Acquiror determines that public disclosure
of the progress of transactions contemplated hereby is necessary in public
documents required to be filed by it or pursuant to the exception in the
preceding sentence, it agrees to notify the Company of its intention to make
such disclosure and provide the other with the text of the disclosure in advance
of its release to the public.

SECTION 6.3Registration
Statement. 

(a)Acquiror shall use its
reasonable efforts to file or cause to be filed with the SEC on or prior to the
date that is fifteen (15) days after the Effective Time, a registration
statement on Form S-3 (the "Registration Statement") to cover resales
of the shares (the "Registered Shares") of Acquiror Common Stock
constituting Merger Consideration.  The Registered Shares shall be allocated pro
rata among the Stockholders based on the portion of the Merger Consideration
received by each.  Acquiror shall use its reasonable efforts to cause such
Registration Statement to be declared effective as soon as practicable
thereafter.  Acquiror shall use its reasonable efforts to keep such Registration
Statement continuously effective, supplemented and amended to the extent
necessary to ensure that it is available for resales of the Registered Shares
for a period ending on the earlier of (i) two years from the Closing Date, and
(ii) a date which is more than one (1) year from the Closing Date and on which
less than 20% of the original aggregate Registered Shares are held by the
Stockholders.

(b)Acquiror will bear the costs
of all Registration Expenses.  For the purposes hereof, "Registration
Expenses" shall mean all expenses incident to Acquiror's preparation and
filing of the Registration Statement, including, without limitation, all
registration and filing fees, fees and expenses of compliance with federal
securities laws or state blue sky laws, printing expenses, messenger and
delivery expenses, fees and disbursements of custodians and fees and
disbursements of counsel for Acquiror and all independent certified public
accountants, and other persons retained by
Acquiror.

(c)In connection with the
registration and sale of the Registered Shares Acquiror will:

(i)prepare and file with the SEC the Registration
Statement as set forth above;

(ii)provide to each holder of Registered Shares a copy of
the Registration Statement and related Prospectus, including each preliminary
Prospectus, and each amendment and supplement thereto; 

(iii)use its best efforts to register or qualify the
Registered Shares under such other securities or blue sky laws of such
jurisdictions as each holder of Registered Shares may reasonably request and do
any and all other acts and things which may be reasonably necessary or advisable
to enable each holder of Registered Shares to consummate the disposition in such
jurisdictions of the Registered Shares owned by such holder; provided, however,
that Acquiror will not be required to (A) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for
this subparagraph, (B) subject itself to taxation in any such jurisdiction,
or (C) consent to general service of process in any such jurisdiction;
and

(iv)Upon the occurrence of any event that would cause the
Registration Statement (A) to contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading or (B) to be not effective
and useable for resale of the Registered Shares during the period that such
Registration Statement is required to be effective and useable, Acquiror upon
knowledge of such an event, shall as promptly as practicable file an amendment
to the Registration Statement, in the case of clause (A), correcting any
such misstatement or omission, and, in the case of either clause (A) or
(B), use its best efforts to cause such amendment to be declared effective and
such Registration Statement to become useable as soon as practicable thereafter.

(d)Notwithstanding anything to the contrary in this
Section 6.3, Acquiror may prohibit offers and sales of the Registered
Shares pursuant to the  Registration Statement at any time if (A) (1) it is
in possession of material non-public information, (2) the Board of
Directors of Acquiror determines based on advice of counsel that such
prohibition is necessary in order to avoid a requirement to disclose such
material non-public information, and (3) the Board of Directors of Acquiror
determines in good faith that disclosure of such material non-public information
would not be in the best interests of Acquiror and its Stockholders or (B)
Acquiror has made a public announcement relating to an acquisition or business
combination transaction including Acquiror and/or one or more of its
subsidiaries (1) that is material to Acquiror and its subsidiaries taken as
a whole, and (2) the Board of Directors of Acquiror determines in good
faith that offers and sales of the Registered Shares pursuant to the
Registration Statement prior to the consummation of such transaction (or such
earlier date as the Board of Directors shall determine) is not in the best
interests of Acquiror and its Stockholders (the period during which any such
prohibition of offers and sales of Registered Shares pursuant to the
Registration Statement is in effect pursuant to clause (A) or (B) of this
Section 6.3(d) is referred to herein as a "Suspension Period").  A
Suspension Period shall commence on and include the date on which Acquiror
provides written notice to holders of Company Stock covered by the Registration
Statement that offers and sales of Registered Shares cannot be made thereunder
in accordance with this Section 6.3(d) and shall end three business days
after the earlier to occur of (x) the date on which such material information is
disclosed to the public or ceases to be material or Acquiror is able to so
comply with its disclosure obligations and SEC requirements, or (y) 90 days
after written notice is provided by Acquiror to the holders of Registered Shares
of such Suspension Period.  Each notice shall state to the extent, if any, as is
practicable, an estimate of the expected duration of the Suspension Period;

(e)Each holder of Registered Shares shall furnish to
Acquiror such information regarding the distribution of its Registered Shares as
is required by law to be disclosed in the Registration Statement (the
"Requisite Information") prior to effecting any sale pursuant to such
Registration Statement.  Each holder of Registered Shares  as to which any
Registration Statement is being effected agrees prior to effecting any sale of
the Registered Shares thereunder to furnish promptly to Acquiror all information
required to be disclosed in order to make any Requisite Information previously
furnished to Acquiror by such holder of Registered Shares  not materially
misleading or necessary to cause such Registration Statement not to omit a
material fact with respect to such holder of Registered Shares necessary in
order to make the statements therein not misleading.  

(f)Each holder of  Registered Shares agrees that, upon
receipt of any notice from Acquiror of the existence of any fact of the kind
described in subparagraphs 6.3(c)(iv) or 6.3(d) hereof (an "Amendment
Notice"), such holder of Registered Shares will forthwith discontinue
disposition of Registered Shares until such holder's receipt of (A) copies of
the supplemented or amended Prospectus contemplated by
subparagraph 6.3(c)(iv) hereof, or until counsel for Acquiror shall have
determined that such disclosure is not required due to subsequent events,
(B) notice in writing from Acquiror that the use of the Prospectus may be
resumed, (C) copies of any additional or supplemental filings with respect
to the Prospectus, or (D) the expiration of the Suspension Period.  In the
event Acquiror shall give any such notice, the time period regarding the filing
of the Registration Statement set forth in subparagraph 6.3(a) hereof shall
be extended by the number of days during the period from and including the date
of the giving of such notice pursuant to subparagraph 6.3(d) hereof to and
including the date when each holder of Registered Shares covered by such
Registration Statement shall have received the copies of the supplemented or
amended Prospectus contemplated by this subparagraph 6.3(f).  

(g)Acquiror agrees to use its best efforts to cause the
Registered Shares covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities as may be necessary
to enable the holders of  Registered Shares to consummate the disposition of
such Registered Shares, subject to the proviso contained in
subparagraph 6.3(c)(iii) above, and cause all Registered Shares to be
listed on each securities exchange or national quotation system on which
Acquiror's Registered Shares  is then listed.

(h)Acquiror agrees to indemnify,
to the extent permitted by law, each holder of Registered Shares against all
losses, claims, damages, liabilities and expenses including, without limitation,
reasonable attorneys' fees, caused by any untrue or alleged untrue statement of
material fact contained in the Registration Statement, any prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any
omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as the
same are caused by or contained in any information furnished in writing to
Acquiror by such holder expressly for use therein or by such holder's willful misconduct, negligent breach of its obligations
under this Section 6.3 or failure to deliver a copy of the Registration
Statement or prospectus or any amendments or supplements thereto.

(i)In connection with the
Registration Statement, each holder of Registered Shares will furnish to
Acquiror in writing such information and affidavits as Acquiror reasonably
requests for use in connection with the Registration Statement or prospectus
contained therein and, to the extent permitted by law, will indemnify Acquiror,
its directors and officers and each person who controls Acquiror (within the
meaning of the Act) against any and all losses, claims, damages, liabilities and
expenses, including, without limitation, reasonable attorneys' fees, caused by
any untrue or alleged untrue statement of material fact contained in the
Registration Statement, any prospectus or preliminary prospectus or any
amendment thereof or supplement thereto or any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading, insofar as such losses, claims, damages, liabilities and
expenses are caused by any such untrue statement or omission or alleged untrue
statement or omission furnished in writing to Acquiror for use therein or such
holder's failure to provide the prospective purchaser with a copy of the current
prospectus; provided, however, that the obligation to indemnify will be several,
not joint and several among the holders of Registered Shares, and the liability
of each holder will be limited to the net amount received by such holder of
Registered Shares from the sale of Registered Shares pursuant to the
Registration Statement.

SECTION 6.4338 Election Payment.  At the Closing,
Acquiror shall pay to the Principal Stockholder the sum in cash of $5,000,000 in
consideration of Principal Stockholder's agreement to make the Section 338
Election.

SECTION 6.5Consent to Merger.  Each of the
Stockholders, by their execution of this Agreement, hereby consents to the
transactions contemplated by this Agreement, including, without limitation, the
Merger and the change in control of the Company effected thereby.  Without
limiting the foregoing, such Stockholder waives (a) any and all notices required
by applicable laws or the articles of incorporation or bylaws of the Company in
connection with the consent set forth in this Section or the transactions
contemplated hereby, and (b) any and all dissenters', appraisal or similar
rights, available under the Company's articles of incorporation, bylaws or at
law or in equity, in connection with the Merger and the transactions
contemplated hereby.

ARTICLE VII

CONDITIONS TO ACQUIROR'S OBLIGATIONS

The obligation of Acquiror to pay the Merger Consideration
on the Closing Date and to consummate the other transactions contemplated hereby
is subject to the satisfaction, on or before the Closing Date, of the following
conditions each of which may be waived by Acquiror in its sole
discretion:

SECTION 7.1Consents.  All material governmental approvals and
consents of third parties identified on Schedule 2.7 or otherwise
required to consummate the transactions described herein shall have been
obtained, including, without limitation, all approvals required under the HSR
Act and pursuant to Section 5.16.

SECTION 7.2Representations and Warranties True.  All of the
representations and warranties of the Company and the Principal Stockholder
contained in Article II or in any Schedules or other documents attached hereto
or referred to herein or delivered pursuant hereto in connection with the
transactions contemplated hereby shall be true, correct and complete in all
material respects on and as of the date hereof and on and as of the Closing
Date, as if made on and as of the Closing Date;
provided that any representation or warranty qualified by the term
"material," or words to such effect, or otherwise qualified as to
materiality shall be true on the Closing Date in accordance with the terms
thereof.  On the Closing Date, the President of the
Company shall have executed and delivered to Acquiror a certificate, in form and
substance reasonably satisfactory to Acquiror and its counsel, to such
effect.  

SECTION 7.3Performance.  The Company and the Principal
Stockholder shall have performed and complied in all material respects with all
covenants and agreements contained herein required to be performed or complied
with by them prior to or at the Closing Date.  The President of the Company
shall have executed and delivered to Acquiror a certificate, in form and
substance satisfactory to Acquiror and its counsel, in writing to such effect
and to the further effect that all of the conditions set forth in this
Article VII have been satisfied. 

SECTION 7.4No Material Adverse Change.  No Material Adverse
Change with respect to the Company shall have occurred or be threatened.

SECTION 7.5Good Standing Certificates.  The
Company shall have delivered to Acquiror certificates of good standing from the
Secretaries of the State of Delaware and all other States in which the Company
is qualified to do business dated no earlier than five (5) business days prior
to the Closing Date.

SECTION 7.6Opinion of Counsel.  Acquiror shall have received
the opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., in form
and content reasonably acceptable to Acquiror.

SECTION 7.7No Actions, Suits or Proceedings.  As of the Closing
Date, no action, suit, investigation or proceeding brought by any person,
corporation, governmental agency or other entity shall be pending or, to the
knowledge of the parties to this Agreement, threatened, before any court or
governmental body (i) to restrain, prohibit, restrict or delay, or to
obtain damages or a discovery order with respect to this Agreement or the
consummation of the transactions contemplated hereby, or (ii) which has had
or may have a Materially Adverse Effect on the Company.  No order, decree or
judgment of any court or governmental body shall have been issued restraining,
prohibiting, restricting or delaying, the consummation of the transactions
contemplated by this Agreement.  No insolvency proceeding of any character
including, without limitation, bankruptcy, receivership, reorganization,
dissolution or arrangement with creditors, voluntary or involuntary, affecting
the Company or any Stockholder shall be pending, and neither the Company nor any
Stockholder shall have taken any action in contemplation of, or which would
constitute the basis for, the institution of any such proceedings.

SECTION 7.8Employment, Non-Competition and Confidentiality
Agreements.  Each of the Applicable Employees shall have entered into a Non-
Competition and Confidentiality Agreement with Acquiror and the applicable
parties shall have entered into the Employment Agreement Amendments or the New
Employment Agreements, as applicable.  

SECTION 7.9Closing Documents.  The Stockholders shall have
delivered the Certificates representing the EPITAXX Shares, duly endorsed to
Acquiror, and all of the resolutions, certificates, documents and instruments
required by this Agreement.

SECTION 7.10Termination of Stockholder Agreements.
The EPITAXX Stockholders' Agreements shall have been terminated prior to the
Closing Date and of no further force or effect.  

ARTICLE VIII

CONDITIONS TO THE STOCKHOLDERS' OBLIGATIONS

The obligation
of the Company and the Stockholders to complete the Merger and to consummate the
other transactions contemplated hereby is subject to the satisfaction, on or
before the Closing Date, of the following conditions, each of which may be
waived by the Company and the Principal Stockholder, in their sole
discretion:

SECTION 8.1Representations and Warranties to be True and
Correct.  The representations and warranties contained in Article III shall
be true, complete and correct, in all material respects, on and as of the
Closing Date, as if made on and as of such date (other than those
representations and warranties that are specifically
made as of another date, which shall be true, correct and complete in all
material respects as of such other date), provided that any representation or
warranty qualified by the term "material," or words to such effect, or
otherwise qualified as to materiality shall be true on the Closing Date in
accordance with the terms thereof, and Acquiror shall have delivered to the
Company a certificate, in form and substance satisfactory to the Company, the
Principal Stockholder and its counsel, to such effect. 

SECTION 8.2Performance.  Acquiror shall have performed and
complied in all material respects with all agreements contained herein required
to be performed or complied with by it prior to or at the Closing Date, and
Acquiror shall have delivered a certificate to the Company, in form and
substance satisfactory to the Company and its counsel to such effect.

SECTION 8.3Opinion of Acquiror's Counsel.  The Company shall
have received from Morrison & Foerster LLP an opinion dated the Closing
Date, in form and content reasonably acceptable to the Company.

SECTION 8.4No Actions, Suits or Proceedings.  As of the Closing
Date, no action, suit, investigation or proceeding brought by any person,
corporation, governmental agency or other entity shall be pending or, to the
knowledge of the parties to this Agreement, threatened, before any court or
governmental body to restrain, prohibit, restrict or delay, or to obtain damages
or a discovery order in respect of this Agreement or the consummation of the
transactions contemplated hereby.  No order, decree or judgment of any court or
governmental body shall have been issued restraining, prohibiting, restricting
or delaying, the consummation of the transactions contemplated by this
Agreement.  No insolvency proceeding of any character including, without
limitation, bankruptcy, receivership, reorganization, dissolution or arrangement
with creditors, voluntary or involuntary, affecting Acquiror shall be pending, and Acquiror shall not have
taken any action in contemplation of, or which would constitute the basis for,
the institution of any such proceedings.

SECTION 8.5Closing Documents.  Acquiror shall have delivered
the Merger Consideration and all of the resolutions, certificates, documents and
instruments required by this Agreement.

ARTICLE IX

INDEMNIFICATION

SECTION 9.1Survival.  Except as set forth in the next sentence,
all representations and warranties, and all covenants to be performed at or
before the Closing, in this Agreement, or in any instrument or document
furnished in connection with this Agreement or the transactions contemplated
hereby, shall survive the Closing and any investigation at any time made by or
on behalf of any party for a period ending on August 31, 2001 (the "Cutoff
Date).  All such representations, warranties and covenants shall expire on the
Cutoff  Date, except that (a) claims, if any, asserted in writing prior to
such Cutoff Date, identified as a claim for indemnification pursuant to this Article IX shall survive until finally
resolved and satisfied in full, and (b) claims, if any, which are
environmental in nature, which are based upon fraud, or which relate to title to
the EPITAXX Shares, the capitalization of the Company, title to the assets of
the Company, the Employee Plans, or which involve tax liability shall survive
for the full period of the applicable statute of limitations, and until finally
resolved and satisfied in full if asserted on or prior to such date.  All other
covenants and agreements contained herein shall survive until fully performed in
accordance with their terms.

SECTION 9.2Indemnification by the Company and the Principal
Stockholder.  The Company and the Principal Stockholder shall, jointly and
severally, indemnify, defend, and hold Acquiror, the Surviving Company (upon
consummation of the Merger) and their respective Affiliates (as such term is
defined under Rule 405 of the Rules and Regulations of the Securities Act) and
the respective officers, directors, employees and stockholders (other than any
Stockholder, any affiliates of any Stockholder or any officer or director of the
Company prior to the Closing Date) of the foregoing, and their successors and
assigns (the "Indemnitees") from, against and with respect to any
claim, liability, obligation, loss, damage, assessment, judgment, cost and
expense (including, without limitation, attorneys' and accountants' fees and
costs and expenses reasonably incurred in investigating, preparing, defending
against or prosecuting any litigation or claim, action, suit, proceeding or
demand) of any kind or character (the
"Damages"), arising out of or in any manner incident, relating or
attributable to:

(a)Any inaccuracy in any
representation or breach of warranty of the Company or the Principal Stockholder
contained in this Agreement or in any certificate, instrument of transfer or
other document or agreement executed by the Company or the Principal Stockholder
in connection with this Agreement or otherwise made or given in connection with
this Agreement;

(b)Any failure by the Company or
the Principal Stockholder to perform or observe, or to have performed or
observed, in full, any covenant, agreement or condition to be performed or
observed by any of them under this Agreement or under any certificates or other
documents or agreements executed by the Company or the Principal Stockholder in
connection with this Agreement;  provided, however,
that (i) any claim for indemnification hereunder shall be asserted prior to the
expiration of the survival period set forth in Section 9.1; and (ii) after the Closing, the rights of Acquiror
under this Section 9.2 shall be its sole remedy for any breach of any
representation or warranty contained in this Agreement, except for a claim for
fraud or reckless misrepresentation.  In connection with any
indemnification obligation of the Principal Stockholder or the Company
hereunder, the Acquiror shall be entitled to be put in the same tax position as
if the indemnification obligation had not occurred including the reduction of
the amount of Damages by the amount of any tax benefit which may be realized by
Acquiror or the increase of the amount of Damages by the amount of any tax
detriment incurred by Acquiror; 

(c)Any and all taxes which are imposed on the Company in
respect of its income, business, property or operations or for which the Company
may otherwise be liable (i) for any taxable period ending prior to the
Closing Date, (ii) for the portion of a Straddle Period  ending on the Closing
Date, (iii) resulting by reason of the several liability of the Company pursuant
to Treasury Regulations section 1.1502-6 or any analogous state, local or
foreign law or regulation or by reason of the Company having been a member of
any consolidated, combined or unitary group on or prior to the Closing Date,
(iv) resulting from the Company ceasing to be a member of the affiliated group
(within the meaning of Section 1504(a) of the Code) that includes Principal
Stockholder, (v) in respect of any post-Closing Date period, attributable to
events, transactions, sales, deposits, services or rentals occurring, received
or performed in a pre-Closing Date period, (vi) in respect of any post-Closing
Date period, attributable to any change in accounting method employed by the
Company during any of its four previous taxable years, (vii) in respect of any
post-Closing Date, attributable to any items of income or gain of a partnership
reporting the Company as a partner, to the extent such items are properly
attributable to periods of the partnership ending on or before the Closing Date,
(viii) attributable to any discharge of indebtedness that may result from
any capital contributions by Principal Stockholder (or an affiliate of Principal
Stockholder) to the Company of any intercompany indebtedness owed by the Company
to Principal Stockholder (or an affiliate of Principal Stockholder), and (ix)
resulting from the making of the Code Section 338 election (or analogous
provision of state, local or territorial law); provided, however, that Principal
Stockholder's liability under the foregoing provisions of this paragraph shall
be reduced as to any item to the extent that such item was specifically and
fully reserved for in the Closing Balance Sheet; or

(d) Any and all claims against any Indemnitee, made prior to
or after the Effective Time, by the holder of Patent No. 4368098 (the
"Rockwell Patent"), or any licensee of any rights thereunder, that the
products, technology, designs, processes, services, business or operations of
the Company as presently conducted infringe or misappropriate the Rockwell
Patent or any applications or rights thereunder or any proprietary rights
relating to, deriving from or arising under the Rockwell Patent, notwithstanding
that any such claims or potential claims are disclosed on any Schedule to this
Agreement or have otherwise been previously disclosed to Acquiror; provided that
any Damages incurred by the Indemnities pursuant to this Section 9.2(d) (i)
shall not include royalty payments for the use of the Rockwell Patent, if any,
agreed to be paid by Acquiror or which Acquiror becomes otherwise obligated to
make with respect to any activities after the Effective Time, and (ii) shall be
limited such that the Principal Stockholder shall be liable only for such
Damages to the extent that same are determined in a manner that is consistent
(considering the amount of such Damages and the activities of the Company with
respect to which such Damages are payable) with Acquiror's damage or future
royalty obligation, if any, pursuant to clause (i) above.  

SECTION 9.3Indemnification by Stockholders.  Each
of the Stockholders shall, severally, but not jointly, indemnify, defend, and
hold harmless the Indemnitees from, against and with respect to any Damages
arising out of or in any manner incident, relating or attributable to:  (a) any
inaccuracy in any representation or breach of warranty of such Stockholder
contained in Article III of this Agreement; or (b) any breach by any such
Stockholder of any of its covenants set forth in this Agreement.

SECTION 9.4Limitations on Indemnification.

(a)Neither any Stockholder, on
the one hand as an indemnifying party, nor the Acquiror, on the other hand as
indemnifying party, shall be liable to the other in respect of any
indemnification hereunder unless, until and to the extent that the aggregate
damages claimed exceed $600,000 (the "Basket Amount"), whereupon the
indemnified party shall be entitled to indemnification for all damages suffered
or incurred by the indemnified party including those less than the Basket
Amount; provided, however, that no limitation shall apply with respect to (i)
any Damages incurred by an Indemnitee pursuant to Section 9.2(d) or with respect
to any taxes not reflected in or reserved against on the Balance Sheet, or (ii)
an intentional breach of the representations and warranties in this
Agreement.

(b)Neither the Company and the
Principal Stockholder, on the one hand, nor the Acquiror, on the other hand,
shall be required to indemnify the other for an aggregate amount in excess of
$80,000,000 (the "Liability Cap"), except for Damages to Acquiror
resulting from the falsity of a representation or warranty of which any
Knowledge Party who is a management employee, officer or director of the
Principal Stockholder or its affiliates (other than EPITAXX) had actual
knowledge at the time such representation or warranty was made or at the time of
the Closing and as to which no disclosure was made as and when required
hereunder, which Damages shall be subject to a Liability Cap of $400,000,000
(reduced by any other Damages for which indemnification is provided hereunder).
With respect to Stockholders other than the Principal Stockholder, there shall
be a Liability Cap equal to the total amount of Merger Consideration received by
such Stockholder pursuant to this Agreement.

(c)In calculating the Liability Cap, any insurance
recoveries received by the Indemnified Party shall be subtracted from the
aggregate Damages claimed.

SECTION 9.5Indemnification by Acquiror.  Acquiror shall
indemnify and hold harmless the Stockholders against any and all Damages arising
directly out of any breach of any representation, warranty, covenant, or
agreement of Acquiror contained in this Agreement, provided, however, that
(i) any claim for indemnification hereunder shall be asserted prior to the
expiration of the survival period set forth in
Section 9.1, and (ii) after the Closing, the rights of the Stockholders under
this Section 9.4 shall be its sole remedy for any breach of this
Agreement.

SECTION 9.6Claims for Indemnification.  Upon the occurrence of
any event which any party asserts is an indemnifiable event pursuant to this
Article IX, the party claiming indemnification (the "Indemnified
Party") shall provide prompt notice to the party required to provide
indemnification (the "Indemnifying Party"), specifying in detail the
facts and circumstances with respect to such claim and the basis for which
indemnification is available hereunder.  If such event involves the claim of any
third party, Acquiror shall have the right to control the defense or settlement
of such claim; provided, however, that (a) the Principal Stockholder shall be entitled to participate in
the defense of such claim at its own expense, and or (b) each party shall
obtain the prior written approval of the other party (which approval shall not
be unreasonably withheld or delayed) before entering into any settlement of such
claim if, pursuant to or as a result of such settlement, injunctive or other
non-monetary relief would be imposed against the Indemnified Party, or the
proposed settlement is in excess of the Liability Cap.  In the event that the
Indemnifying Party shall be obligated to indemnify the Indemnified Party
pursuant to this Article IX, the Indemnifying Party shall, upon payment of such
indemnity in full, be subrogated to all rights of the Indemnified Party with
respect to the claim to which such indemnification relates.

SECTION 9.7Indemnification for Letter of Credit
Obligations.  Acquiror shall promptly reimburse the Principal Stockholder
for any principal and interest (exclusive of default amounts and penalties
accruing prior to the Closing Date) paid by the Principal Stockholder or any
affiliate of the Principal Stockholder pursuant to any guaranty by it or any
affiliate of the Principal Stockholder of the Company's obligation to reimburse
The Sumitomo Bank, Limited ("Sumitomo") for any draw made by Sumitomo
Bank of New York Trust Company ("Sumitomo Trust") under that certain
Letter of Credit dated August 29, 1998, as amended, issued by Sumitomo to
Sumitomo Trust in the amount of $5,250,000 (the "Letter of Credit").
If the Principal Stockholder or any of its affiliates is required to make
payment under the Letter of Credit, then the Acquiror agrees that it will
promptly (a) obtain a substitute letter of credit from a bank to replace the
Letter of Credit, or (b) provide such other guaranties or assurances in
substitute for the Letter of Credit sufficient to cause the Letter of Credit to
be cancelled.  

ARTICLE X

TERMINATION

SECTION 10.1Termination.  This Agreement may be terminated and
the transactions contemplated hereby may be abandoned at any time prior to the
Closing:  

(a)By mutual written consent duly
authorized by the Boards of Directors of Acquiror and the Company;

(b)By Acquiror or the Company
if 

(i)any court of competent jurisdiction or other
governmental body shall have issued an order, decree or ruling, or taken any
other action restraining, enjoining or otherwise prohibiting the transactions
contemplated hereby, provided that this Agreement shall not be terminated
pursuant to this paragraph unless the party terminating this Agreement has
utilized its best efforts to oppose the issuance of such order, decree or ruling
or the taking of such action;

(ii)the Closing has not occurred on or prior to December
31, 1999 (as the same date may be extended as provided below) for any reason
other than the breach of any provision of this Agreement by the party
terminating this Agreement; or

(iii)the other party breaches any of its representations,
warranties or covenants attached hereto and such breach is not promptly cured.

(c)By Acquiror if:

(i)Any of the conditions set forth in Article VI hereof
has not been satisfied on or before December 31, 1999 (as such date may be
extended as provided below) and shall not have been waived by Acquiror, for any
reason other than a breach by Acquiror of any of its representations, warranties
or agreements hereunder; or

(ii)If in Acquiror's good faith judgment there is any
material inaccuracy in any representations or breach of any warranty contained
therein, or any material failure by the Stockholders to perform any commitment,
covenant or condition contained in this Agreement, or there exists any material
error, misstatement or omission with regard to any of the Exhibits, Schedules or
other documents referred to herein.

(d)By the Company if any of the
conditions set forth in Article VII hereof has not been satisfied on or before
December 31, 1999 (as such date may be extended as provided below) and shall not
have been waived by the Company, for any reason other than a breach by the
Company or any Stockholder of any of their representations, warranties or
agreements hereunder;

If any party
shall elect to terminate this Agreement pursuant to this Section 9.1 (other than
paragraph (a) hereof), written notice of such event shall forthwith be given by
the terminating party to the other parties to this Agreement, whereupon this
Agreement shall terminate.  Notwithstanding the foregoing, the date set
forth in paragraphs (b)(ii), (c)(i) and (d) shall automatically be extended
until March 31, 2000 if the Closing has not occurred solely because (x) the
parties have not obtained the necessary consent under the HSR Act, or (b) any
required approvals pursuant to ISRA have not been obtained (or waived by
Acquiror as provided in Section 5.16).  

SECTION 10.2Effect of Termination.  In the event of the
termination and abandonment of this Agreement pursuant to Section 10.1, this
Agreement, except for the provisions of Articles IX, X , XI and XII shall
forthwith become void and be of no effect, without any liability on the part of
any party or its directors, officers or stockholders.  Nothing in this Section
10.2 shall relieve any party to this Agreement of liability for breach of this
Agreement.  If the Stockholders or the Company fail to fulfill their respective
obligations hereunder for any reason not excused by an express provision of this
Agreement, then Acquiror shall, in addition to any other remedies that it may
have, have the right to bring an action in any court of competent jurisdiction
to obtain specific performance of this Agreement, it being understood that the
parties agree that failure of the Stockholders to consummate the purchase and
sale of the EPITAXX Shares or failure of the Stockholders or the Company to
perform any of their obligations contemplated by this Agreement (except for a
failure excused by an express provision of this Agreement) would cause
irreparable injury to Acquiror and that money damages would not provide an
adequate remedy to Acquiror.  The Stockholders and the Company therefore waive
all objections to the award of equitable relief for such failure.

ARTICLE XI

NONDISCLOSURE OF CONFIDENTIAL INFORMATION

Each of the Parties agrees that it shall
exercise, and shall cause their respective Representatives and their respective
Affiliates to exercise, the same degree of care to prevent disclosure of
Information (as hereinafter defined) received by or disclosed to such Party
pursuant to this Agreement as it takes to preserve and safeguard its own
confidential information, data, technology or know-how but, in any event, no
less than a reasonable degree of care. As used herein, "Information"
means all documents and information concerning any other Party and the
Affiliates thereof furnished to a Party, its Affiliates or Representatives (in
any case, a "Recipient" by such other Party or its Representatives (in
any case, the "Disclosing Party") in connection with the transactions
contemplated by this Agreement. Each Recipient shall not use any of such
Information except as permitted by this Agreement or release or disclose such
Information to any other Person, except its auditors, attorneys, financial
advisors, bankers and other consultants and advisors in connection with this
Agreement. 

If this Agreement shall be terminated pursuant to Article IX
any documentary Information (including all copies thereof) shall be returned to
the Disclosing Party promptly at its request. In any event, Information shall be
safeguarded by the Recipient for not less than five (5) years from the date
hereof.

The restrictions of this Article XI shall not apply to any
Information received by a Recipient (a) which such Recipient already possessed
at the time of receipt as shown by written records; (b) which was at the time of
receipt or subsequently becomes, publicly available though no fault of such
Recipient or any of its Affiliates or Representatives; (c) which such Recipient
rightfully received from a third party which the Recipient neither knows nor has
reason to know is prohibited from disclosing such information by a contractual,
legal or fiduciary obligation; (d) is furnished by the Disclosing Party to a
third party without a similar restriction of the third party's rights; or (e) is
as required to be disclosed pursuant to Law; provided that, if
practicable, the Recipient shall notify the Disclosing Party prior to disclosing
any Information pursuant to this clause (e) and shall cooperate with the
Disclosing Party in making reasonable efforts to resist such disclosure, if the
Disclosing Party so requests. 

In the event of a breach of any of the obligations stated
above in this Article X, the Disclosing Party may proceed against the breaching
Recipient in Law or in equity for such damages or other relief as a court may
deem appropriate. Nothing herein contained shall be construed as prohibiting the
Disclosing Party from pursuing, in addition, any other remedy for such breach or
threatened breach.

ARTICLE XII

MISCELLANEOUS

SECTION 12.1Notices.  All notices, requests, consents and other
communications hereunder shall be in writing, shall be addressed to the
receiving party's address set forth below or to such
other address as a party may designate by notice hereunder, and shall be either
(i) delivered by hand, (ii) made by facsimile transmission,
(iii) sent by recognized overnight courier, or (iv) sent by registered
or certified mail, return receipt requested, postage prepaid.

If to
Acquiror:JDS Uniphase Corporation

163 Baypointe Parkway

San Jose, California  94134

Attn:  Michael C. Phillips

Fax No. (408) 954-0540.

With a copy
to:Morrison & Foerster LLP

755 Page Mill Road

Palo Alto, California  94304

Attn:  Christopher S. Dewees

Fax No. (650) 813-5798

If to the Company the

Representative or the 

Stockholders: EPITAXX, Inc.

7 Graphics Drive

West Trenton, New Jersey
08628

Attn:Noboru Hiraguri

Fax No.:  (609) 538-
1684
NSG Holding and USA, Inc.

One Paragon Center

2525 Harrodsburg Road

Lexington, KY 46504

Attn:  President

Fax No.:  (606) 296-4120

With a copy
to:Mintz, Levin, Cohn, Ferris, Glovsky and 

  Popeo,
P.C.

One
Financial Center

Boston,
Massachusetts  02111

Attn:
Thomas J. Kelly, Esquire

Fax No.:
(617) 542-2241

All notices,
requests, consents and other communications hereunder shall be deemed to have
been (i) if by hand, at the time of the delivery thereof to the receiving
party at the address of such party set forth above, (ii) if made by telex,
telecopy or facsimile transmission, at the time that receipt thereof has been
acknowledged by electronic confirmation or otherwise, (iii) if sent by
overnight courier, on the next business day following the day such notice is
delivered to the courier service, or (iv) if sent by registered or
certified mail, on the 5th business day following the day such mailing is
made.

SECTION 12.2Entire
Agreement.  This Agreement, together with the Exhibits and Schedules, and
the other documents executed, subsequent to the date
hereof, in connection herewith (together, the "Documents") embodies
the entire agreement and understanding between the parties with respect to the
subject matter hereof and supersedes all prior oral or written agreements and
understandings relating to the subject matter hereof.  No statement,
representation, warranty, covenant or agreement of
any kind not expressly set forth in the Documents shall affect, or be used to
interpret, change or restrict, the express terms and provisions of this
Agreement.

SECTION 12.3Modifications and Amendments.  The terms and
provisions of this Agreement may be modified or amended only by written
agreement executed by the parties. 

SECTION 12.4Waivers and Consents.  No failure or delay by a
party hereto in exercising any right, power or remedy under this Agreement, and
no course of dealing between the parties hereto, shall operate as a waiver of
any such right, power or remedy of the party.  No single or partial exercise of
any right, power or remedy under this Agreement by a party hereto, nor any
abandonment or discontinuance of steps to enforce any such right, power or
remedy, shall preclude such party from any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder.  The election of any
remedy by a party hereto shall not constitute a waiver of the right of such
party to pursue other available remedies.  No notice to or demand on a party not
expressly required under this Agreement shall entitle the party receiving such
notice or demand to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the party giving such
notice or demand to any other or further action in any circumstances without
such notice or demand.  The terms and provisions of this Agreement may be
waived, or consent for the departure therefrom granted, only by written document
executed by the party entitled to the benefits of such terms or provisions.  No
such waiver or consent shall be deemed to be or shall constitute a waiver or
consent with respect to any other terms or provisions of this Agreement, whether
or not similar.  Each such waiver or consent shall be effective only in the
specific instance and for the purpose for which it was given, and shall not
constitute a continuing waiver or consent.

SECTION 12.5Assignment.  Neither this Agreement, nor any right
hereunder, may not be assigned by any of the parties hereto without the prior
written consent of the other parties.

SECTION 12.6Parties in Interest.  This Agreement shall be
binding upon and inure solely to the benefit of each party hereto and their
permitted assigns, and nothing in this Agreement, express or implied, is
intended to confer upon any other person any rights or remedies of any nature
whatsoever under or by reason of this Agreement.  Nothing in this Agreement
shall be construed to create any rights or obligations except among the parties
hereto, and no person or entity shall be regarded as a third-party beneficiary
of this Agreement.

SECTION 12.7Governing Law.  This Agreement and the rights and
obligations of the parties hereunder shall be construed in accordance with and
governed by the internal laws of the State of Delaware, without giving effect to
the conflict of law principles thereof.

SECTION 12.8Jurisdiction and Service of Process.  Any legal
action or proceeding with respect to this Agreement shall be brought exclusively
in the courts of the State of Delaware or of the
United States of America for the District of Delaware.  By execution and
delivery of this Agreement, each of the parties hereto accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts.  The parties hereby irrevocably waive any objection or defense
that they may now or hereafter have to the assertion of personal jurisdiction by
any such court in any such action or to the laying of the venue of any such
action in any such court, and hereby waive, to the extent not prohibited by law,
and agree not to assert, by way of motion, as a defense, or otherwise, in any
such proceeding, any claim that it is not subject to the jurisdiction of the
above-named courts for such proceedings.  Each of the parties hereto irrevocably
consents to the service of process of any of the aforementioned courts in any
such action or proceeding by the mailing of copies thereof by registered mail,
postage prepaid, to the party at its address set forth in Section 12.1
hereof and irrevocably waive any objection or defense that it may now or
hereafter have to the sufficiency of any such service of process in any such
action.  Nothing in this Section 12.8 shall affect the rights of the parties to
commence any such action in any other forum or to serve process in any such
action in any other manner permitted by law.

SECTION 12.9Severability.  If any court of competent
jurisdiction shall finally determine that any provision contained in this
Agreement shall be void or unenforceable in any respect, then such provision
shall be deemed limited to the extent that such court determines it enforceable,
and as so limited shall remain in full force and effect.  In the event that such
court shall determine any such provision, or portion thereof, wholly
unenforceable, the remaining provisions of this Agreement shall nevertheless
remain in full force and effect.

SECTION 12.10Interpretation.  The parties hereto acknowledge and
agree that: (i) each party and its counsel reviewed and negotiated the
terms and provisions of this Agreement (except with respect to the disclosure
schedules regarding the Company's business which are the sole responsibility of
the Company) and have contributed to its revision; (ii) the rule of
construction to the effect that any ambiguities are resolved against the
drafting party shall not be employed in the interpretation of this Agreement;
and (iii) the terms and provisions of this Agreement shall be construed
fairly as to all parties hereto and not in favor of or against any party,
regardless of which party was generally responsible for the preparation of this
Agreement.

SECTION 12.11Headings and Captions.  The headings and captions of
the various subdivisions of this Agreement are for
convenience of reference only and shall in no way modify, or affect, or be
considered in construing or interpreting the meaning or construction of any of
the terms or provisions hereof.

SECTION 12.12Enforcement.  Each of the parties hereto
acknowledges and agrees that the rights acquired by each party hereunder are
unique and that irreparable damage would occur in the event that any of the
provisions of this Agreement to be performed by the other party were not
performed in accordance with their specific terms or were otherwise breached.
Accordingly, in addition to any other remedy to which the parties hereto are
entitled at law or in equity, each party hereto shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement by the other
party and to enforce specifically the terms and provisions hereof in any Federal
or state court to which the parties have agreed hereunder to submit to
jurisdiction.

SECTION 12.13Reliance.  The parties hereto agree that,
notwithstanding any right of any party to this Agreement to investigate the
affairs of any other party to this Agreement, the party having such right to
investigate shall have the right to rely fully upon the representations and
warranties of the other party expressly contained in this Agreement and on the
accuracy of any schedule or other document attached hereto or referred to herein
or delivered by such other party or pursuant to this Agreement.

SECTION 12.14Expenses.  Subject to the next sentence, each of the
parties hereto shall pay its own fees and expenses (including the fees and/or
commissions of any attorneys, advisors, brokers, finders, accountants,
appraisers or others engaged by such party) (collectively, "Fees and
Expenses") in connection with this Agreement and the transactions
contemplated hereby whether or not the transactions contemplated hereby are
consummated.  Notwithstanding the foregoing, Principal Stockholder
shall, prior to the Closing, pay and be solely responsible for all Fees and
Expenses incurred by the Company, including, without limitation, all fees and
commissions payable to Soundview Technology Group, Inc.

SECTION 12.15Counterparts.  This Agreement may be executed in one
or more counterparts, and by different parties hereto on separate counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

SECTION 12.16Appointment of Representatives.  Each Stockholder
(other than the Principal Stockholder) hereby appoints Noboru Hiraguri (the
"Representative"), as his or its agent and attorney-in-fact to receive
all notices and service of process and to give notice and service of process to
Acquiror and/or the Company and to take any action and execute any and all
documents and instruments in connection with this Agreement (including, without
limitation, all documents to be executed by the Stockholders and delivered at
the Closing and contemplated hereby, together with all amendments hereto and
thereto) and the transactions contemplated herein as said Representative deems
necessary or desirable.  The Representative hereby represents that he has been
so appointed as agent and attorney-in-fact.  The parties recognize and
acknowledge that the powers and authority granted the Representative are
terminable upon delivery of written notice of termination to the Representative and Acquiror.  Acquiror shall be entitled to
rely upon, and shall be fully protected in so relying, as fully binding upon the
Stockholders, on any instrument or document
executed, or any decision made, by the Representative prior to termination of
his authority.

SECTION 12.17Further Assurances.  In case at any time any further
action is necessary or desirable to carry out the purposes of this Agreement,
each of the parties hereto will take such further action (including the
execution and delivery of such further instruments and documents) as any other
party reasonably may request, all at the sole cost and expense of the requesting
party (unless the requesting party is entitled to indemnification therefor under
Article VIII above).

 

 

 

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INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE TO FOLLOW]

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

JDS UNIPHASE CORPORATION

By: /s/ Michael C. Phillips

JDS UNIPHASE
ACQUISITION, INC. 

By:/s/ Michael C. Phillips

EPITAXX, INC.

By:/s/ Noboru Hiraguri

PRINCIPAL
STOCKHOLDER:

NSG HOLDING
USA, INC.

By:

Stockholders:

/s/ Noboru Hiraguri

____________________________________________

Noboru Hiraguri

/s/ Yves Dzialowski

____________________________________________

Yves Dzialowski

/s/ James Coleman

____________________________________________

James Coleman

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