Document:

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                                                                    EXHIBIT 10.7

                               SUBLEASE AGREEMENT

        THIS SUBLEASE AGREEMENT ("Sublease") is made and effective as of May 30,
2000 ("Effective Date") by and between Anda Networks, a Delaware corporation
("Sublessee") and Boston Scientific Corporation, One Boston Scientific Place,
Natick, Massachusetts 01760 ("Sublessor").

                                   WITNESSETH

        WHEREAS, pursuant to a lease dated May 17, 1996, by and between
CarrAmerica Realty Corporation, a Maryland corporation and successor in interest
to Orchard Investment Company Number 609 ("Master Lessor"), and Sublessor as
Tenant, as amended by a First Amendment to Lease dated as of April 30, 1997 (as
so amended, the "Master Lease"), a copy of which is attached hereto and
incorporated herein as EXHIBIT A, the Master Lessor leased to Sublessor certain
premises located in the City of San Jose, County of Santa Clara, State of
California, all as more particularly described in the Master Lease; and

        WHEREAS, Sublessor desires to sublease the premises commonly known as
2708 and 2712 Orchard Parkway, as more particularly described in Section 1
below;

        NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties hereby agree as follows:

1. SUBLEASED PREMISES.

        1.1 DESCRIPTION OF PREMISES. Sublessor hereby subleases to Sublessee and
Sublessee hereby subleases from Sublessor for the term, at the rental, and upon
all of the conditions set forth herein, that certain real property situated in
the County of Santa Clara, State of California, commonly known as 2708 and 2712
Orchard Parkway, San Jose and containing approximately 79,791 square feet of
rentable area ("Premises") as shown on EXHIBIT B attached hereto and
incorporated herein.

        1.2 QUIET ENJOYMENT. Provided that Sublessee pays all annual rent and
additional rent and performs all of Sublessee's covenants and agreements
contained herein, Sublessee shall peacefully have, hold and enjoy the Premises,
subject to the terms and conditions of this Sublease and the Master Lease.

2. TERM.

        2.1 CONDITION PRECEDENT. This Sublease and Sublessee's and Sublessor's
obligations hereunder are conditioned upon Sublessor's obtaining the written
consent of Master Lessor to this Sublease. If Sublessor fails to obtain the
Master Lessor's consent within 30 days after execution of this Sublease by
Sublessor, then Sublessee or Sublessor may terminate this Sublease by giving the
other party written notice, and Sublessor shall return to Sublessee all
consideration previously paid by Sublessee to Sublessor.

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        2.2 TERM. The term of this Sublease shall commence on June 1, 2000 (the
"Commencement Date"). If the Commencement Date is the first day of the month,
this Sublease shall end on the date which is three (3) years from the
Commencement Date, unless sooner terminated pursuant to any provision hereof; if
the Commencement date is not the first day of the month, this Sublease shall end
on the date which is three (3) years from the first day of the month following
the Commencement Date ("Term"). The last day of the Term as extended or sooner
terminated shall be the termination date ("Termination Date").

        2.3 OCCUPATION OF PREMISES; DELAY OR ADVANCE IN OCCUPATION OF PREMISES.
If for any reason Sublessor cannot deliver possession of the Premises to
Sublessee on the Commencement Date, Sublessor shall not be subject to any
liability therefor, nor shall such failure affect the validity of this Sublease
or the obligations of Sublessee hereunder or extend the Term hereof, but in such
case Sublessee shall not be obligated to pay rent until possession of the
Premises is tendered to Sublessee; provided, however, that if Sublessor shall
not have delivered possession of the Premises within 30 days from the
Commencement Date, Sublessee may, at Sublessee's option, by written notice to
Sublessor within ten days thereafter, cancel this Sublease, in which event the
parties shall be discharged from all obligations hereunder and Sublessor shall
return to Sublessee, within 15 days of such termination, any rent, security
deposit, or other monies paid to Sublessor by Sublessee pursuant to this
Sublease.

        As of June 1, 2000 Sublessee may occupy that portion of the Premises
consisting of 2708 Orchard Parkway subject to the following conditions: (i) such
occupancy shall be subject to all provisions of this Sublease and (ii) such
occupancy shall not advance the Termination Date. Notwithstanding the foregoing,
Sublessee and its contractors and agents may enter the Premises prior to the
Commencement Date without any obligation to pay rent for the purpose of storing
and installing cabling, furniture and trade fixtures, provided any such entry
shall be at Sublessee's sole risk and shall be at such times and in such manner
as not to interfere with Sublessor's prosecution of the work required to be
performed by it under Section 11 hereof.

        As of June 1, 2000, Sublessee shall have a temporary license to utilize
the premises located at 2702 Orchard Parkway (the "Staging Area") for a period
of thirty (30) days as a staging area in preparation for Sublessee's occupation
of the Premises, subject to the following conditions: (i) Sublessee's use of the
Staging Area shall be as Sublessee's sole risk, (ii) Sublessee's use of the
Staging Area shall be subject to all the terms and conditions of this Sublease,
except that Sublessee shall not be required to pay rent or additional rent,
(iii) Sublessor shall not be liable for any events occurring on or about the
Staging Area unless such events are the result of Sublessor's negligence or
willful misconduct, (iv) Sublessee shall indemnify and save harmless Sublessor
and Sublessor's agents, affiliates and contractors and the employees of all of
the foregoing from and against all claims of whatever nature arising from any
act, omission or negligence of Sublessee or Sublessee's contractors, licensees,
invitees, agents, servants or employees or arising from any accident, injury or
damage whatsoever caused to any person, or to the property of any person,
occurring on account of or based upon the act, omission, fault, negligence or
misconduct of Sublessee or Sublessee's contractors, licensees, invitees, agents,
servants or employees on or about the Staging Area, and (v) Sublessee shall
leave the Staging Area in good clean condition on or before July 1, 2000.

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        2.4 SURRENDER. On the Termination Date, Sublessee shall surrender the
Premises, including the plumbing, HVAC system, electrical, lighting and other
operational systems in broom clean, good working condition, reasonable wear and
tear and damage by casualty excepted, and shall comply with all of the
provisions regarding surrender set forth in Section 15.2 of the Master Lease.
The foregoing notwithstanding, upon the surrender of the Premises, Sublessee
shall not be required to remove any additions, alterations or improvements made
to the Premises prior to the Commencement Date by Sublessor or any predecessor
in interest of Sublessor or at any time if not installed by Sublessee. With
respect to any improvements made during the term of this Sublease, unless
Sublessee requests at the time it seeks the approval of Master Lessor and
Sublessor a determination as to whether or not such improvements must be removed
at the end of the Term (or earlier termination of this Sublease) and Sublessor
and Master Lessor agree that such improvements need not be removed, Sublessor
and Master Lessor may require the removal of such improvements on termination of
this Sublease.

3. RENTS AND INSURANCE.

        3.1 BASE RENT. Sublessee shall pay to Sublessor as base rent for the
Premises monthly payments in advance on the 15th day of each month of the Term
of this Sublease, except for the first full month's rent and rent for any
partial month after the Commencement Date until the first day of the following
month, which shall be due and payable upon delivery to Sublessee of this fully
executed Sublease. Base rent shall be calculated at the following rates:

<TABLE>
<CAPTION>
         Month                   Base Rent Rate Per Month
         -----                   ------------------------
<S>                              <C>
         1-12                    $199,477.50 ($2.50/square foot/NNN)

         13 - 24                 $203,465.05 ($2.55/square foot/NNN)

         25 - 36                 $207,456.60 ($2.60/square foot/NNN)
</TABLE>

Base rent for any period during the Term or any extension thereof which is for
less than one month shall be a pro rata portion of the monthly installment. Base
rent shall be paid by Sublessee without offset, deduction, notice or demand.
Sublessee shall be subject to the provisions of Article 3.4 of the Master Lease
with respect to any late payments of base rent set forth in this Section 3.1.
Sublessee shall not be subject to any adjustments in the base rent (including
any due to an increase in the Consumer Price Index) under this Sublease except
as set forth in this Section 3.1.

        3.2 TRIPLE NET LEASE. The purpose and intent of this Sublease is that
the rent provided for in this Section 3 shall be absolutely net to the Sublessor
except as explicitly provided to the contrary herein. Except as explicitly set
forth in Section 11 of this Sublease, as between Sublessor and Sublessee,
Sublessor shall not have any obligation to construct, maintain, alter or repair
the Premises or any facilities or improvements thereon or appurtenant thereto or
be obligated to provide Sublessee with any service or facility.

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        Subject to the previous paragraph, Sublessee shall pay to Sublessor as
additional rent 100% of all Common Operating Expenses (as defined in the Master
Lease) attributable to the Premises which Sublessor may be obligated to pay
pursuant to Article 8 of the Master Lease or otherwise. The amounts due
hereunder shall be payable to Sublessor, in lawful money of the United States,
in the following manner. Based on the amount of projected Common Operating
Expenses passed through to the Sublessor by the Master Lessor, Sublessor shall
inform Sublessee on an annual basis what the projected Common Operating Expenses
will be, and Sublessee shall pay one-twelfth of such amount each month along
with the Base Rent. Such projected Common Operating Expenses, and the
corresponding amount to be added to the monthly Base Rent, shall be subject to
adjustment up or down throughout the year on a dollar for-dollar basis in
accordance with adjustments made by the Master Lessor. Sublessee shall be
subject to the provisions of Article 3.4 of the Master Lease with respect to any
late payments of additional rent set forth in this Section 3.2.

        3.3 ADDRESS FOR PAYMENT. All base and additional rent shall be payable
in lawful money of the United States to Sublessor at Boston Scientific
Corporation, 2710 Orchard Parkway, San Jose, California 95134, Attention: Mr.
George Harter, Controller, or at such other places as Sublessor may designate to
Sublessee in writing.

        3.4 SUBLESSEE DIRECT EXPENSES AND INSURANCE. Sublessee shall pay
directly to the applicable utility and/or public service company, 100% of the
cost of all utilities (gas, electricity) and routine services (e.g., garbage
removal) supplied to the Premises, in accordance with Article 7.3 of the Master
Lease. At all times during the Term of this Sublease, Sublessee shall procure
and maintain in full force and effect with respect to the Premises, at
Sublessee's sole cost and expense, the insurance referenced in Article 9 of the
Master Lease. All such insurance coverages shall name the Master Lessor, as well
as Sublessor, as additional insured parties and, if requested, any "Lender" as
that term is defined in the Master Lease.

4. SECURITY DEPOSIT. Sublessee shall provide Sublessor with an irrevocable
standby Letter of Credit payable to Sublessor (in substantially the same form
and substance as Exhibit C hereto) in the amount of One Million Two Hundred
Forty Four Thousand Seven Hundred Forty and No/100 ($1,244,740.00), as a
security deposit for Sublessee's faithful performance of Sublessee's obligations
under this Sublease ("Security Deposit"). Sublessee shall deliver the Security
Deposit to the Sublessor on the earlier of the Commencement Date or the date on
which Sublessee exercises its right under Section 2.3 to occupy space prior to
the Commencement Date. If Sublessee fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any provision of this Sublease,
Sublessor may use, apply or retain all or any portion of the Security Deposit
for the payment of any rent or other charge in default or for the payment of any
other sum to which Sublessor may become obligated by reason of Sublessee's
default, or to compensate Sublessor for any loss or damage which Sublessor may
suffer thereby. If Sublessor so uses or applies all or any portion of the
Security Deposit, Sublessee shall within ten days after written demand therefore
deposit lawful money of the United States with Sublessor in an amount sufficient
to restore the Security Deposit to the full amount hereinabove stated and
Sublessee's failure to do so shall be a material breach of this Sublease. If
Sublessee performs all of Sublessee's obligations hereunder, the Security
Deposit, or so much thereof as has not

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theretofore been applied by Sublessor, shall be returned, without payment of
interest or other increment for its use to Sublessee (or at Sublessor's option,
to the last assignee, if any, of Sublessee's interest hereunder) within 30 days
after the expiration of the Term hereof. No trust relationship is created herein
between Sublessor and Sublessee with respect to said Security Deposit.

5. USE, COMPLIANCE WITH LAW AND CONDITION OF THE PREMISES.

        5.1 USE. The Premises shall be used and occupied only for general office
headquarters for networking equipment applications and for no other purpose;
provided that such use does not include the use, storage or disposal of any
Hazardous Materials (as defined in the Master Lease) except for ordinary office
and household products in amounts customary for Sublessee's permitted use of the
Premises. Sublessee shall not use or permit the use of the Premises in any
manner that will tend to create waste or a nuisance or, if there shall be more
than one tenant of the building containing the Premises, which shall tend to
disturb such other tenants.

        5.2 COMPLIANCE WITH LAW. Sublessee shall, at Sublessee's expense, comply
promptly with all applicable statutes, ordinances, rules, regulations, building
codes, restrictions of record, and requirements in effect during the Term or any
part of the Term hereof regulating the particular use by Sublessee of the
Premises. Notwithstanding the foregoing, alterations to the Premises required by
a governmental agency in order to remove or remediate asbestos or other
Hazardous Materials or to make the Premises comply with fire or safety
regulations, the Americans with Disabilities Act, or the building code shall be
Sublessor's sole responsibility, unless such alterations are due to actions
voluntarily undertaken by Sublessee, in which case such required alterations
shall be Sublessee's sole responsibility. Sublessee shall not be responsible for
the removal or remediation of any asbestos or hazardous materials found at the
Premises if such asbestos or hazardous material was not placed upon the Premises
by Sublessee. Additionally, Sublessee shall not be liable for the exacerbation
of any existing asbestos or hazardous material resulting from any improvements
or alterations made by Sublessee.

        5.3 CONDITION OF PREMISES. The Premises will be delivered to Sublessee
"broom clean", in good order and condition as to those aspects of the Premises
that are to be maintained under the Master Lease by Sublessor and Sublessor
shall have removed all chemical storage tanks and all chemicals from the
Premises. Subject to the provisions of this Section 5.3 and Section 5.2,
Sublessee accepts the Premises "as is," as of the Effective Date, subject to all
applicable zoning, municipal, county and state laws, ordinances, and regulations
governing and regulating the use of the Premises, and accepts the Sublease
subject thereto and to all matters disclosed in this Sublease and the Master
Lease (including their respective schedules and exhibits). Except as set forth
herein, Sublessee acknowledges that neither Sublessor nor Sublessor's agents
have made any representation or warranty as to the suitability of the Premises
for the conduct of Sublessee's business.

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6. MASTER LEASE.

        6.1 SUBORDINATION OF SUBLEASE TO AND INCORPORATION OF MASTER LEASE.
Sublessee acknowledges and agrees that Sublessor is not the fee owner of the
Premises, and that Sublessor has acquired its interest in the Premises solely
through the Master Lease. This Sublease is subordinate to the Master Lease. As
between Sublessor and Sublessee only, the terms, conditions and respective
obligations of Sublessor and Sublessee to each other under this Sublease shall
be subject to the terms and conditions of the Master Lease except for those
provisions of the Master Lease which are directly contradicted by this Sublease,
in which event the terms of this Sublease shall control over the Master Lease.
In no event shall Sublessor voluntarily terminate the Master Lease with respect
to the Premises during the term of this Sublease unless (i) such termination is
the result of Sublessor's rights pursuant to the Master Lease relating to
casualty or condemnation or (ii) Master Lessor agrees, in writing, to enter into
a direct lease with Sublessee under the same terms and conditions set forth
herein.

        6.2 SUBLESSEE'S ASSUMPTION OF CERTAIN OBLIGATIONS. Except as otherwise
provided in this Sublease, during the Term of this Sublease and for all periods
subsequent for obligations which have arisen prior to the termination of this
Sublease, Sublessee hereby expressly assumes and agrees to perform and comply
with, for the benefit of Sublessor and Master Lessor, each and every obligation
of Sublessor under Section 3.2, Section 3.4, Article 4, Article 5, Article 6,
Article 7 (with the term "Effective Date" referring to the Effective Date of
this Sublease as such term is defined in Section 1.12 of the Master Lease),
Article 8, Article 9, Section 10.3, Section 12.5, Section 13.2, Article 14,
Section 15.2, Section 15.3, Section 15.4, Section 15.5, Section 15.6 and Section
15.9 of the Master Lease as to the Premises subleased under this Sublease.
Sublessee covenants that neither Sublessee nor its agents, employees,
contractors or invitees will commit any act or act of omission in violation of
the terms and provisions of the Master Lease so as to render the Sublessor in
default in any of the terms, covenants and conditions of the Master Lease. The
obligations that Sublessee has assumed under this Section 6.2 are hereinafter
referred to as the "Sublessee's Assumed Obligations." Sublessee shall indemnify,
defend, protect and hold harmless Sublessor from any and all damages,
liabilities, judgments, actions, claims, reasonable attorneys' fees,
consultants' fees, payments, costs and expenses arising out of Sublessee's
failure to comply with or perform Sublessee's Assumed Obligations.

        6.3 RIGHTS RESERVED TO SUBLESSOR. Subject to the provisions of Section
6.2 above, Sublessee shall not have any of the Tenant's rights specified in the
provisions of Section 11.3(b) of the Master Lease. The Sublessee shall not have
any of the Tenant's rights under the Master Lease with respect to any tenant
improvement allowances, rights of first negotiation or renewals or extensions of
the term of the Master Lease.

7. ASSIGNMENT AND SUBLEASING.

        7.1 ASSIGNMENT BY SUBLESSEE. Sublessee shall have the right to assign
Sublessee's interest in this Sublease or sublease the Premises in whole or in
part during the Term hereof, subject to obtaining the prior written consent of
Sublessor, which shall not be unreasonably withheld or delayed, and of Master
Lessor. The foregoing notwithstanding, if Sublessee requests

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Sublessor's consent to an assignment or sublet of all or a portion of the
Premises through the remainder of the Sublease term, Sublessor shall have the
right to recapture the portion of the Premises proposed to be assigned or
sublet, in which case this Sublease shall terminate as to such portion of the
Premises. Furthermore, Sublessee shall pay to Sublessor, after the reduction of
any costs incurred by Sublessee in subleasing the space, seventy-five percent
(75%) of the rent received as a result of an assignment or sublease which
exceeds the Base Rent payable hereunder for the same period on a per square foot
basis. The "reduction of any costs incurred by Sublessee in subleasing the
space" shall include all reasonable costs incurred by Sublessee in connection
with such sublease, including reasonable legal fees and brokerage commissions.
Any such assignment or further sublease of the Premises shall be subject to the
provisions of Section 14.1 of the Master Lease and shall not relieve Sublessee
of its duties and obligations under this Sublease.

        7.2 ASSIGNMENT BY SUBLESSOR. This Sublease may be assigned by Sublessor
subject to the provisions of Section 14.1 of the Master Lease.

        7.3 RIGHT OF FIRST OFFER OF SUBLESSEE. Provided no Event of Default then
exists, Sublessor shall, prior to offering the same to any party, first offer to
lease to Tenant the space designated at 2702 Orchard Parkway (the "OFFER SPACE")
in an "AS-IS" condition at the rental rate set forth in Section 3 hereof; such
offer shall be in writing and specify the lease terms for the Offer Space,
including the date on which the Offer Space shall be included in the Premises
(the "OFFER NOTICE"). Sublessee shall notify Sublessor in writing whether
Sublessor elects to lease the entire Offer Space on the terms set forth in the
Offer Notice, within ten days after Sublessor delivers to Sublessee the Offer
Notice. If Sublessee timely elects to lease the Offer Space, then Sublessor and
Sublessee shall execute an amendment to this Sublease, effective as of the date
the Offer Space is to be included in the Premises, on the terms set forth in the
Offer Notice and, to the extent not inconsistent with the Offer Notice terms,
the terms of this Sublease; however, Sublessee shall accept the Offer Space in
an "AS-IS" condition and Sublessor shall not provide to Sublessee any allowances
(e.g., moving allowance, construction allowance, and the like) or other tenant
inducements except as specifically provided in the Offer Notice. Notwithstanding
the foregoing, if prior to Sublessor's delivery to Sublessee of the Offer
Notice, Sublessor has received an offer to lease all or part of the Offer Space
from a third party (a "THIRD PARTY OFFER") and such Third Party Offer includes
space in excess of the Offer Space, Sublessee must exercise its rights
hereunder, if at all, as to all of the space contained in the Third Party Offer.

        If Sublessee fails or is unable to timely exercise its right hereunder,
then such right shall lapse, time being of the essence with respect to the
exercise thereof, and Sublessor may lease all or a portion of the Offer Space to
third parties on such terms as Sublessor may elect. Sublessee may not exercise
its rights under this Section if an Event of Default exists or Sublessee is not
then occupying the entire Premises. In no event shall Sublessor be obligated to
pay a commission with respect to any space leased by Sublessee under this
Section, and Sublessee and Sublessor shall each indemnify the other against all
costs, expenses, attorneys' fees, and other liability for commissions or other
compensation claimed by any broker or agent claiming the same by, through, or
under the indemnifying party.

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        Sublessee's rights under this Section shall terminate if (a) this
Sublease of Sublessee's right to possession of the Premises is terminated, (b)
Sublessee assigns any of its interest in this Sublease or sublets any portion of
the Premises or (c) Sublessor has not offered the Offer Space to Sublessee by
November 30, 2000.

8. DEFAULT.

        8.1 DEFAULT BY SUBLESSEE. In the event that Sublessee shall default in
the payment of base rent and/or any additional rent when due, Sublessor shall
notify Sublessee in writing of such default, and Sublessee shall have three days
from the date of delivery of such notice to pay such base rent and/or additional
rent. If Sublessee cures the default within the three-day period, Sublessee
shall not be in default hereunder but the provisions of the Master Lease with
respect to late charges and interest shall apply to any such payment. In the
event that Sublessee shall default in the performance of any of Sublessee's
obligations or duties under this Sublease, Sublessor shall notify Sublessee in
writing of such default, and Sublessee shall have 20 days from the date of
delivery of such notice to cure such default, or, if such default is not capable
of being cured by Sublessee within 20 days thereafter (except that if such
default cannot be cured within said 20-day period, this period shall be extended
for an additional reasonable time, provided that Sublessee commences to cure
such default within such 20-day period and proceeds diligently thereafter to
effect such cure as quickly as possible), and if Sublessee fails to cure such
default, in addition to being a default under this Sublease, Sublessor shall be
entitled, at Sublessor's option, to cure such default for the account of
Sublessee.

        8.2 DEFAULT BY MASTER LESSOR; TERMINATION OF MASTER LEASE. In the event
of any default by the Master Lessor of the Master Lease under the terms thereof,
Sublessee shall give the Sublessor and the Master Lessor written notice thereof.
In the event that the Master Lease shall be canceled or terminated for any
reason, the Term of this Sublease shall automatically terminate as of the date
of such cancellation or termination of the Master Lease, and the Sublessor shall
not be liable in any way or to any extent to the Sublessee for such termination
or cancellation or for any damages or losses incurred or claimed to be incurred
by Sublessee as a result thereof. In such case, Sublessor shall return to
Sublessee, within 15 days of such termination, any unearned base or additional
rent, security deposit, or other unearned monies paid to Sublessor by Sublessee
pursuant to this Sublease. Notwithstanding the foregoing, Sublessor covenants
and agrees that Sublessor will not do anything which would constitute a default
under the provisions of the Master Lease, whether or not expressly incorporated
by reference in this Sublease, or omit to do anything which Sublessor is
obligated to do under the terms of this Sublease which would constitute a
default under the Master Lease.

        8.3 DEFAULT BY SUBLESSOR. In the event that Sublessor shall default in
the performance of any of Sublessor's obligations or duties under this Sublease,
Sublessee shall notify Sublessor in writing of such default, and Sublessor shall
have 30 days from the date of such notice to cure such default, or, if such
default is not capable of being cured by Sublessor within 30 days thereafter
(except that if such default cannot be cured within said 30-day period, this
period shall be extended for an additional reasonable time, provided that
Sublessor commences to cure such default within such 30-day period and proceeds
diligently thereafter to

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effect such cure as quickly as possible). Sublessor shall deliver to Sublessee
within five days after Sublessor's receipt copies of all notices of default that
Sublessor may receive pursuant to the Master Lease.

9. BROKER'S FEE. Upon execution hereof by all parties, Sublessor shall pay to
Wayne Mascia Associates a licensed real estate broker (herein called "Broker"),
a fee as set forth in a separate agreement between Sublessor and Broker.

10. TENANT IMPROVEMENTS. Sublessee may, at Sublessee's sole cost and expense,
make improvements to the Premises; provided, however, that Sublessee will first
obtain Sublessor's prior written approval to such improvements which approval
shall not be unreasonably withheld, and, if Sublessor reasonably determines that
the Master Lessor's approval is also necessary or appropriate, Sublessee shall
also obtain Master Lessor's prior written approval. Sublessee shall not initiate
any such improvements until all approvals are obtained. The making of any such
improvements shall be subject to the provisions of Article 5 of the Master
Lease.

11. SIGNAGE AND PARKING.

        11.1 SIGNAGE: Entryways. Subject to the provisions of Section 4.4 of the
Master Lease, Sublessee, at its sole cost and expense, may (i) display
Sublessee's name in six-inch white stick-on letters, placed at approximately
eye-level on the glass next to the double glass doors at each of the two main
entrances to the Premises, (ii) display the applicable building number
immediately above Sublessee's name on such glass in six-inch white stick-on
letters (i.e. 2708 and 2712 Orchard Parkway), and (iii) paint Sublessee's name
in a maximum of 4-inch letters on the signs in existence as of the Effective
Date that are located in the flowerbed near each of the two main entrances to
the Premises. The color scheme of the lettering and background colors on the
flowerbed signs must be pre-approved by Sublessor and Master Lessor, and shall
be subject to Master Lessor's signage standards for the project.

        11.2 PARKING. The parking spaces allocated by the Master Lessor to the
office complex located at 2688, 2694-2698, 2702 and 2710 Orchard Parkway, San
Jose, California shall be available to Sublessee and its visitors on a
non-exclusive basis.

12. GENERAL PROVISIONS.

        12.1 NOTICES. All notices required or allowed to be given hereunder
shall be in writing and shall be deemed to have been given when actually
received at the address set forth below, it being understood that notices shall
generally be sent by hand delivery (including commercial courier service with
written verification of delivery retained), overnight courier service or
certified mail with return or confirmed receipt requested. The burden of proving
receipt shall be on the party sending the notice.

                      If to Sublessor:      Boston Scientific Corporation
                                            2710 Orchard Parkway
                                            San Jose, California 95134

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                                            Attention:  Bruce Wand
                                                        Director Mfg Process
                                                        Engineering/Facilities

                      with a copy to:       Boston Scientific Corporation
                                            One Boston Scientific Place
                                            Natick, Massachusetts 01760-1637
                                            Attention:  Executive Vice President
                                                        and General Counsel

                      If to Sublessee:      Prior to the Commencement Date:

                                            ANDA Networks

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

                                            After the Commencement Date:

                                            ANDA Networks
                                            2708 and 2712 Orchard Parkway
                                            San Jose, California  95134
                                            Attention:  __________

                      If to Master Lessor:  CarrAmerica Realty Corporation
                                            1810 Gateway Drive
                                            Suite 150
                                            San Mateo, California 94404

                      with a copy to:       1850 K Street N.W.
                                            Suite 500
                                            Washington, DC 20006
                                            Attention: Lease Administrator

        Sublessor and Sublessee may at any time, by notice to the other given in
the manner provided above, change the address for notices to it. Any such change
of address shall be effective as to the other only upon its receipt of the
notice of such change.

        12.2 MERGER, DISCLAIMER AND ENTIRE AGREEMENT. This Sublease, together
with its Exhibits A through C, contains the entire understanding between the
parties as to the subject matter hereof. All prior understandings and agreements
between the parties hereto are merged in this Sublease, which alone fully and
completely expresses the parties understandings under this Sublease. Sublessee
has not relied upon or been induced by any statements or representations, other
than those expressly set forth in this Sublease, of any person in respect of the
title to or the physical condition of the Premises, or any other matter
affecting the Premises or this transaction

                                       10
<PAGE>   11

which might be pertinent in considering the execution of this Sublease.
Sublessee expressly acknowledges that no such representation not embodied here
has been made.

        12.3 WAIVER. No waiver, change, modification or discharge of any of the
provisions of this Sublease shall be valid unless effected by an agreement in
writing signed by both parties hereto. The waiver of any of the provisions of
this Sublease shall not be deemed to be a waiver of any subsequent breach or
default of the provisions hereof.

        12.4 SEVERABILITY. The illegality or invalidity of any provision of this
Sublease, by reason of any rule of law or public policy, shall not affect this
Sublease or any other provision hereof, but this Sublease shall, nevertheless,
remain in full force and effect and shall be construed in all respects as if
such invalid provision were omitted.

        12.5 CONSTRUCTION OF SUBLEASE. This Sublease and the performance thereof
shall be construed, regulated and governed by the laws of the State of
California without reference to its choice of law provisions. The Section
headings have been inserted for convenience only and shall not enter in the
interpretation or construction of this Sublease.

        12.6 RELATIONSHIP BETWEEN PARTIES. Sublessor and Sublessee each
expressly disclaim any intent to form a partnership, association, or any other
entity, or to become joint venturers by virtue of the execution of this
Agreement.

        12.7 BINDING AGREEMENT. This Sublease shall inure to the benefit of the
parties hereto and be binding upon the parties hereto as well as their
respective successors and permitted assigns.

        12.8 NON-DEFAULT. Sublessor hereby acknowledges that, as of the date it
is executing this Sublease, neither Master Lessor nor Sublessor is, to the best
of Sublessor's knowledge, in violation or default of any term, covenant or
condition of the Master Lease.

        12.9 ADDRESS. Sublessee shall have the use of the building addresses
2708 Orchard Parkway and "2712 Orchard Parkway" with respect to the Premises.
Sublessee shall not utilize the building address "2710 Orchard Parkway".
Sublessee agrees that, in the event Sublessee receives any mail addressed to
Sublessor, Sublessee shall promptly deliver the same to Sublessor.

                                       11
<PAGE>   12

        IN WITNESS WHEREOF, the authorized officers of the parties have executed
this Sublease as of the Effective Date.

SUBLESSOR:

Boston Scientific Corporation

By:  /s/ James M. Kelly                        Executed at
     ------------------------------------                  ---------------------
Printed:                                       on
        ---------------------------------         ------------------------------
Title: VP and Corporate Controller
       ----------------------------------

SUBLESSEE:

ANDA Networks

By:  /s/Charles R. Kenmore                     Executed at
     ------------------------------------                  ---------------------
Printed:                                       on
        ---------------------------------         ------------------------------
Title: President and CEO
       ----------------------------------

<PAGE>   13

                                    EXHIBIT A
                                  Master Lease

<PAGE>   14

                                    EXHIBIT B
                                Premises Drawing

<PAGE>   15

                                    EXHIBIT C
                                Letter of Credit

<PAGE>   16

                        [Silicon Valley Bank Letterhead]

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB00IS2507

DATE: MAY 16, 2000

BENEFICIARY:
BOSTON SCIENTIFIC CORPORATION
ONE BOSTON SCIENTIFIC PLACE
NATICK, MA 01760-1637
AS "LANDLORD"

APPLICANT:
ANDA NETWORKS
2921 COPPER ROAD
SANTA CLARA, CA 95051
AS "TENANT"

AMOUNT: US$1,244,740.00 (ONE MILLION TWO HUNDRED FORTY FOUR THOUSAND SEVEN
HUNDRED FORTY AND 00/100 U.S. DOLLARS)

EXPIRATION DATE: MAY 31, 2001

LOCATION: AT OUR COUNTERS IN SANTA CLARA, CALIFORNIA

DEAR SIR/MADAM:

WE HEREBY ESTABLISH OUR IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB00IS2507 IN
YOUR FAVOR AVAILABLE BY YOUR DRAFTS DRAWN ON US AT SIGHT AND ACCOMPANIED BY THE
FOLLOWING DOCUMENTS:

1. THE ORIGINAL OF THIS LETTER OF CREDIT AND ALL AMENDMENT(S), IF ANY.
2. A DATED CERTIFICATION SIGNED BY AN AUTHORIZED OFFICER OF THE BENEFICIARY,
   FOLLOWED BY ITS DESIGNATED TITLE, STATING THE FOLLOWING:

(A) "AN EVENT OF DEFAULT (AS DEFINED IN THE LEASE) HAS OCCURRED BY ANDA NETWORKS
    AS TENANT UNDER THAT CERTAIN LEASE AGREEMENT BETWEEN TENANT, AND
    BENEFICIARY, AS LANDLORD. FURTHERMORE THIS IS TO CERTIFY THAT: (I) LANDLORD
    HAS GIVEN WRITTEN NOTICE TO TENANT TO CURE THE DEFAULT PURSUANT TO THE TERMS
    OF THE LEASE; (II) SUCH DEFAULT HAS NOT BEEN CURED UP THO THIS DATE OF
    DRAWING UNDER THIS LETTER OF CREDIT; AND (III) LANDLORD IS AUTHORIZED TO
    DRAW DOWN ON THE LETTER OF CREDIT, AND

(B) THIS IS TO CERTIFY THAT LANDLORD WILL HOLD THE FUNDS DRAWN UNDER THIS LETTER
    OF CREDIT AS SECURITY DEPOSIT FOR TENANT OR APPLY SAID FUNDS TO TENANT'S
    OBLIGATION UNDER THE LEASE."

<PAGE>   17
                           [SILICON VALLEY BANK LOGO]

IRREVOCABLE STANDBY LETTER OF CREDIT NO. SVB00IS2507
DATED MAY 16, 2000

PARTIAL DRAWS ARE ALLOWED. THIS LETTER OF CREDIT MUST ACCOMPANY ANY DRAWINGS
HEREUNDER FOR ENDORSEMENT OF THE DRAWING AMOUNT AND WILL BE RETURNED TO THE
BENEFICIARY UNLESS IT IS FULLY UTILIZED.

THIS LETTER OF CREDIT SHALL BE AUTOMATICALLY EXTENDED FOR AN ADDITIONAL PERIOD
OF ONE YEAR, WITHOUT AMENDMENT, FROM THE PRESENT OR EACH FUTURE EXPIRATION DATE
UNLESS AT LEAST 30 DAYS PRIOR TO THE THEN CURRENT EXPIRATION DATE WE NOTIFY YOU
BY REGISTERED MAIL/OVERNIGHT COURIER SERVICE AT THE ABOVE ADDRESS THAT THIS
LETTER OF CREDIT WILL NOT BE EXTENDED BEYOND THE CURRENT EXPIRATION DATE. IN NO
EVENT SHALL THIS LETTER OF CREDIT BE AUTOMATICALLY EXTENDED BEYOND MAY 31, 2003.

THIS LETTER OF CREDIT MAY ONLY BE TRANSFERRED IN ITS ENTIRETY BY THE ISSUING
BANK UPON OUR RECEIPT OF THE ATTACHED "EXHIBIT A" DULY COMPLETED AND EXECUTED BY
THE BENEFICIARY AND ACCOMPANIED BY THE ORIGINAL LETTER OF CREDIT AND ALL
AMENDMENT(S), IF ANY, TOGETHER WITH THE PAYMENT OF OUR TRANSFER FEE OF 1/4 OF 1%
OF THE TRANSFER AMOUNT (MINIMUM USD250.00).

DRAFT(S) AND DOCUMENTS MUST INDICATE THE NUMBER AND DATE OF THIS LETTER OF
CREDIT.

DOCUMENTS MUST BE FORWARDED TO US BY OVERNIGHT DELIVERY SERVICE TO: SILICON
VALLEY BANK, 3003 TASMAN DRIVE, SANTA CLARA CA 95054, ATTN: INTERNATIONAL
DIVISION.

WE HEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONAFIDE HOLDERS THAT THE DRAFTS
DRAWN UNDER AND IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER OF
CREDIT SHALL BE DULY HONORED UPON PRESENTATION TO THE DRAWEE, IF NEGOTIATED ON
OR BEFORE THE EXPIRATION DATE OF THIS CREDIT.

THIS LETTER OF CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF COMMERCE,
PUBLICATION NO. 500.

/s/ [ILLEGIBLE]                           /s/ [ILLEGIBLE]
------------------------                  --------------------------
AUTHORIZED SIGNATURE                      AUTHORIZED SIGNATURE

                                  PAGE 2 OF 2
<PAGE>   18
            [SILICON VALLEY BANK INTERNATIONAL DIVISION LETTERHEAD]

                                  EXHIBIT "A"

DATE:

TO:  SILICON VALLEY BANK
     3003 TASMAN DRIVE                     RE:  STANDBY LETTER OF CREDIT
     SANTA CLARA, CA 95054                      NO.              ISSUED BY
     ATTN: INTERNATIONAL DIVISION               SILICON VALLEY BANK, SANTA CLARA
           STANDBY LETTERS OF CREDIT            L/C AMOUNT:

GENTLEMEN:

FOR VALUE RECEIVED, THE UNDERSIGNED BENEFICIARY HEREBY IRREVOCABLY TRANSFERS TO:

(NAME OF TRANSFEREE)
(ADDRESS)

ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY TO DRAW UNDER THE ABOVE LETTER OF
CREDIT UP TO ITS AVAILABLE AMOUNT AS SHOWN ABOVE AS OF THE DATE OF THIS
TRANSFER.

BY THIS TRANSFER, ALL RIGHTS OF THE UNDERSIGNED BENEFICIARY IN SUCH LETTER OF
CREDIT ARE TRANSFERRED TO THE TRANSFEREE. TRANSFEREE SHALL HAVE THE SOLE RIGHTS
AS BENEFICIARY THEREOF, INCLUDING SOLE RIGHTS RELATED TO ANY AMENDMENTS,
WHETHER INCREASES OR EXTENSIONS OR OTHER AMENDMENTS, AND WHETHER NOW EXISTING
OR HEREAFTER MADE. ALL AMENDMENTS ARE TO BE ADVISED DIRECT TO THE TRANSFEREE
WITHOUT NECESSITY OF ANY CONSENT OF OR NOTICE TO THE UNDERSIGNED BENEFICIARY.

THE ORIGINAL OF SUCH LETTER OF CREDIT IS RETURNED HEREWITH, AND WE ASK YOU TO
ENDORSE THE TRANSFER ON THE REVERSE THEREOF, AND FORWARD IT DIRECTLY TO THE
TRANSFEREE WITH YOUR CUSTOMARY NOTICE OF TRANSFER.

SINCERELY,

----------------------------------
      (BENEFICIARY'S NAME)

----------------------------------
    SIGNATURE OF BENEFICIARY

----------------------------------
     SIGNATURE AUTHENTICATED

----------------------------------
          (NAME OF BANK)

----------------------------------
        AUTHORIZED SIGNATURE

                        [LETTERHEAD ADDRESS/PHONE INFO]
<PAGE>   19
ANDA NETWORKS, INC.                                                         4184

BOSTON SCIENTIFIC CORP                              5/26/00
05/25/00                   BILL #052500                             199,477.50

                                    PAYMENT
                                     RECORD

Checking                                                            199,477.50

137958 (9400)<PAGE>   1
                                                                    EXHIBIT 10.8

                               RESELLER AGREEMENT

        This Reseller Agreement ("Reseller Agreement"), dated as of March 26,
1999 ("Effective Date"), is made and entered into by and between ANDA Networks,
Inc. ("ANDA"), a Delaware Corporation, and PairGain Technologies Corporation, a
Delaware corporation ("Reseller").

                                    RECITALS

        ANDA desires to manufacture and sell to Reseller and to grant Reseller
certain rights to resell the products described in Exhibit A and Exhibit B, and
Reseller desires to purchase such products and to receive such resale rights,
subject to the terms and conditions set forth in this Reseller Agreement; and

        ANDA and Reseller desire to discuss the potential of joint development
efforts for solutions in the service provider market.

1. PROVISION AND SALE OF PRODUCT AND PLUGS. The product to be provided and sold
by ANDA is identified in Exhibit A (the "Product"). All plugs and peripherals of
the Product (the "Plugs"), as may also be provided and sold by ANDA to Reseller
are identified in Exhibit B. Pursuant to the terms and conditions of this
Reseller Agreement, ANDA and the Reseller may amend Exhibit A or Exhibit B from
time to time to add future releases, upgrades or modifications of the Product or
the Plugs. For purposes of this Reseller Agreement, references to the "Product"
shall include any Plugs.

2. RESALE RIGHTS GRANTED BY ANDA; END USER AGREEMENT.

       2.1 Subject to the terms and conditions of this Reseller Agreement,
ANDA grants to Reseller a non-exclusive, non-transferable, non-sublicenseable
right to integrate the Product and/or any Plugs into an Application (defined in
Exhibit A), and to resell the Product and the Plugs whether or not integrated
with an Application into any account. Reseller may use subdistributors provided
that any such subdistributor may not use other subdistributors and shall enter
into a written enforceable agreement agreeing to be bound by all the limitations
and restrictions of this Agreement.

       2.2 Notwithstanding the foregoing, no distribution or license of a
Product by Reseller or its distributors shall be made except pursuant to an
enforceable written agreement for ANDA's benefit signed by the end-user that is
at least as protective of ANDA and its rights as this Agreement. Reseller
(and/or its subdistributors) shall not provide any warranties to any end user
that go beyond the warranties and liability limitations provided in this
Agreement. Reseller shall indemnify ANDA for any failure to comply with the
foregoing.

3. EXCLUSIVITY; PURCHASE REQUIREMENTS.

      3.1 In addition to the non-exclusive right granted in 2.1 and subject
to the other terms and conditions of this Reseller Agreement, ANDA grants
Reseller the exclusive right only to market and resell the Product only as
integrated into an Application and only to accounts and prospective accounts
listed on Exhibit C (the "Accounts"). This exclusivity with respect to the
Accounts shall last for a period of one (1) year from the Effective Date, but
may continue for an additional one (1) year period if renewed pursuant to the
mutual agreement of the parties (collectively, the "Exclusivity Period"). ANDA
and the Reseller may mutually agree to amend Exhibit C from time to time to add
additional accounts.

<PAGE>   2

ANDA will provide technical assistance to Reseller with respect to Reseller's
sales to the Accounts in the form of the support services (the "Services")
listed in Exhibit D.

        3.2 The Reseller will use its commercially best efforts to advertise,
promote, facilitate and generate sales of the Product to the Accounts. Without
limiting the generality of the foregoing, in order to retain exclusivity of an
Account the Reseller must produce revenues for ANDA equal to or exceeding the
specified amount in Exhibit C from the Account during the first year of the
Exclusivity Period. In the event that fails to produce revenues equal to or
exceeding the specified amount in Exhibit C in revenues from the Account during
the first year of the Exclusivity Period, ANDA may terminate the Reseller's
right of exclusivity to that Account. ANDA and the Reseller agree to a quarterly
review of the Exclusive Accounts and their performance against the minimum
targets.

        3.3 Upon termination or expiration of the Exclusivity Period, the
Reseller's right to resell the Product as integrated into an Application to the
Accounts shall become a non exclusive right for the remainder of the term of
this Reseller Agreement. Either party may terminate the exclusivity with respect
to any Account upon six (6) months written notice to the other party, whereupon,
the Reseller shall bear all further contractual obligations to such Account.

4. PURCHASE ORDERS, FORECASTS, AND DELIVERY.

        4.1 The purchase and sale of the Product and the Plugs shall be made by
means of purchase orders (the "Purchase Orders") placed by the Reseller during
the term of this Reseller Agreement in accordance with the terms and provisions
hereof. All Purchase Orders for the Product and the Plugs submitted by the
Reseller shall include the following: (i) description of the Product and Plugs
ordered; (ii) quantities ordered, (iii) price, (iv) requested delivery dates,
(v) destination, and (vi) requested method of shipment. All Purchase Orders
accepted by ANDA are binding on Reseller.

        4.2 Before the tenth day of each month, Reseller shall provide ANDA with
a good faith forecast of its requirements of Products for the second through
sixth (6th) months following such date. The amount of any Product ordered
pursuant to such Purchase Order shall be not less than fifty percent (50%) or
more than one hundred fifty percent (150%) of the most recent previous forecast
for such quarter. If Reseller does request a quantity of Product outside of the
prescribed range then ANDA will cooperate with Reseller in fulfilling the order,
but ANDA has no obligation to supply more than the amount previously forecasted.
Any orders placed by the Reseller may be cancelled by the Reseller if
cancellation date is not within ANDA's minimum lead-time of section 4.4.

        4.3 Products are to be delivered F.O.B. ANDA's applicable warehouse or
place of production. Unless specific instructions to the contrary are supplied
by Reseller, methods and routes of shipment will be selected by ANDA, but ANDA
will not assume any liability in connection with shipment or constitute any
carrier as an agent of ANDA. All shipments will be insured at Reseller's expense
and made at Reseller's risk, and Reseller shall be responsible for making all
claims with carriers, insurers, warehousemen, and others for misdelivery,
nondelivery, loss, damage, or delay. Reseller shall be responsible for all
taxes, duties and other governmental assessments. ANDA shall be responsible for
any charges including shipping and expedite fees if shipments errors are a
result of ANDA.

        4.4 During the term of this Reseller Agreement, ANDA shall use
reasonable commercial efforts to fill promptly (by full or partial shipment)
Reseller's Purchase Orders for Products in so far as practicable and consistent
with ANDA's the current lead-time schedule, shipping schedule, access to
supplies on acceptable terms and allocation of available products and capacity
among ANDA's customers. ANDA's minimum lead-time requirement is sixty (60)
business days.

                                       2
<PAGE>   3

        4.5 ANDA's Engineering Change Notice ("ECN") process will include
updating the Reseller with a list of all engineering changes to the Product.

        4.6 If the severity of an ECN is such that ANDA reworks its inventory of
the Product then ANDA shall make available to Reseller, at no charge, the option
of reworking any Product inventory that the Reseller holds, provided that the
Reseller has held the inventory less than sixty (60) days. Should Reseller
choose to implement an ECN Reseller will notify ANDA in writing.

5. PRICE AND PAYMENT.

        The Reseller's payment to ANDA for the Product and Plugs delivered in
accordance with this Agreement and the applicable Purchase Order shall be per
the price schedule attached hereto as Exhibit E, which price schedule reflects
the Reseller's price discount structure. The price schedule shall be subject to
adjustments negotiated on an as-needed basis; provided however, that any such
adjustments shall provide the Reseller with a proportionate discount structure.
Payment shall be made by wire transfer to ANDA's designated account or by check
in ANDA's name within 30 days of invoice.

6. APPOINTMENT OF REPRESENTATIVES.

        Both ANDA and the Reseller shall appoint a program manager/product
manager whose task is to serve as the central coordinator with respect to each
party's obligations under this Agreement.

7. RIGHTS AND DUTIES OF ANDA.

        7.1 ANDA shall be responsible for the timely and adequate provision and
sale of the Product, Plugs and the Services to Reseller in accordance with the
terms of this Reseller Agreement.

        7.2 Subject to the terms and conditions of this Reseller Agreement, ANDA
hereby grants to Reseller a non-exclusive, non-transferable, non-sublicenseable
license to do any of the following, without resulting in any royalty or other
obligation owing to ANDA, during the term of this Reseller Agreement:

                (i) reproduce or transmit in any form and by any means,
electronic or mechanical, including photocopying, recording, or by any
information storage and retrieval system, any documentation created and provided
by ANDA and which ANDA deems relevant and reasonably necessary for marketing,
selling and distributing the Product (provided such documentation is not
modified and ANDA's proprietary notices are not removed),

                (ii) use any and all documentation created by ANDA for end users
which Reseller may require in creating its own manuals for the Product or
Applications, subject to ANDA's prior written approval in each instance,

                (iii) use ANDA's name, trademarks, logos and other identifying
information in relevant marketing literature, advertising, promotions, customer
information and programs generated by Reseller that relate to the Product,
subject to ANDA's prior written approval in each instance,

                (iv) demonstrate the Product to the Accounts for a limited time
(less than 30 days) provided that the Reseller is present, and train and certify
Reseller's program manager/product manager, who shall in turn be authorized to
train and certify Reseller's sales, marketing and customer support personnel.

                (v) ANDA shall secure NEBS and [***]* testing as necessary to
enable sales of the Product in accounts.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                       3
<PAGE>   4

        7.3 ANDA shall co-brand the Product with the Reseller's name and model
and revision number consistent with the Reseller's standards, which branding
shall include, but not be limited to, a face plate and equipment documentation.
Such co-branding will identify each party's corporate and product identity in a
manner to be mutually agreed upon. Any alteration cost to the standard ANDA
Product configuration shall be borne by the Reseller.

8. DUTIES OF RESELLER.

        8.1 Reseller shall use, and shall permit others to use, the Product only
in a manner permitted and intended by this Reseller Agreement. Any other use of
Product either by Reseller or permitted by Reseller shall constitute a material
breach.

        8.2 Reseller shall keep ANDA informed as to any problems encountered
with the Products and any resolutions arrived at for those problems, and to
promptly communicate any and all modifications, design changes or improvements
of the Products suggested by any customer, employee or agent of Reseller.

        8.3 Reseller shall NOT modify, disassemble, decompile, or otherwise
reverse engineer the Product or Plugs or otherwise attempt to learn the
structure, algorithms or ideas underlying the Product or Plugs.

        8.4 Reseller shall NOT infringe on the copyright, patent or any other
proprietary right of any third party.

        8.5 Reseller shall NOT distribute in electronic form any content which
violates any law or regulation or to which ANDA has raised any objection.

9. REPRESENTATIONS AND WARRANTIES.

        9.1 ANDA represents and warrants to Reseller that, to the best of its
knowledge, the Product does not infringe on any U.S. copyright, patent or any
other proprietary right of any third party.

        9.2 ANDA and the Reseller represent and warrant to each other that their
respective information systems and technology, inclusive of the Product (for
ANDA) and the Application (for Reseller), respectively, presently are Year 2000
compliant. This means that each party's information systems and technology, and
the Product and the Application, respectively, presently are able to accurately
process properly formatted date/time data, including, but not limited to,
calculating, comparing and sequencing, from, into and between the twentieth and
twenty-first centuries, and the years 1999 and 2000, and leap year calculations.
The foregoing Year 2000 warranty shall only apply if all products interacting
with the Products and Applications (for example, hardware, software, including
interface programs, operating systems, databases and database engines used with
the Licensed Products) are Year 2000 compliant and properly exchange date data
with the Products and/or Applications and does not apply to (i) Products or
Applications that are modified or altered by the Reseller or any third party;
(ii) Products or Applications that are otherwise operated in violation of this
Agreement or any applicable end user agreement or other than in accordance with
the end user documentation or (iii) failures which are caused by Reseller's use
of any software, hardware or products outside the subject matter of this
Reseller Agreement.

10. WARRANTY.

                                       4
<PAGE>   5

        10.1 Except as limited herein, ANDA represents and warrants to
Reseller's end users that the Product and the Plugs manufactured and distributed
by ANDA hereunder are free from any defect in workmanship or material and
substantially conform to the requirements set forth in Exhibit A and Exhibit B,
as they pertain to the Product and the Plugs specifically, under normal use and
care for a period of five (5) years from the date of delivery by ANDA. The
foregoing warranties extend to the Product and Plugs returned by the Reseller as
well as the Product and Plugs returned by ANDA's customers.

        10.2 The foregoing five (5) year Product warranty is limited only to the
hardware parts of the Product with exception of the fan tray. The fan tray of
the Product shall have a one year warranty for any defect in workmanship or
material. ANDA will offer any support and maintenance for the software portion
of the Product to Reseller pursuant to the terms of Service Agreement set forth
in Exhibit F.

        10.3 ANY LIABILITY OF ANDA WITH RESPECT TO A PRODUCT OR THE PERFORMANCE
THEREOF UNDER ANY WARRANTY, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY WILL BE
LIMITED EXCLUSIVELY TO PRODUCT REPLACEMENT OR, IF REPLACEMENT IS INADEQUATE AS A
REMEDY OR, IN THE OPINION OF ANDA, IMPRACTICAL, TO REFUND OF THE LICENSE FEE.
SUCH REMEDIES WILL APPLY ONLY TO PRODUCTS RETURNED TO ANDA DURING THE WARRANTY
PERIOD. EXCEPT FOR THE FOREGOING, ALL PRODUCTS ARE PROVIDED "AS IS" WITHOUT
WARRANTY OF ANY KIND INCLUDING WITHOUT LIMITATION, ANY WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, AND THE STATED
EXPRESS WARRANTY IS IN LIEU OF ALL LIABILITIES OR OBLIGATIONS OF ANDA FOR
DAMAGES, INCLUDING, BUT NOT LIMITED TO, CONSEQUENTIAL DAMAGES OCCURRING OUT OF
OR IN CONJUNCTION WITH THE USE OR PERFORMANCE OF SUCH PRODUCTS OR SPARE PARTS.

        10.4 Products and Plugs that do not conform to the warranties herein
will, at ANDA's option, be repaired or replaced. All parts and labor costs for
repairs made under the warranties herein shall be borne by ANDA. All insurance
and freight costs to the point of repair shall be borne by Reseller; all
insurance and freight costs to return the Products and Plugs to Reseller shall
be borne by ANDA. If ANDA determines that it cannot or it is not practicable to
repair or replace the returned Products and Plugs, ANDA will refund the price of
the non conforming Products or Plugs. The remedies provided in this subsection
are the sole and exclusive remedies for breach of the warranties contained in
this Reseller Agreement.

11. CONFIDENTIALITY.

        11.1 Each party shall each keep in confidence all products, software,
data, business or technical information, designs, know-how, programs and
intelligence, whether in machine readable or visually readable form, exchanged
under this Reseller Agreement, that is deemed confidential and proprietary to
the other party ("Confidential Information").

        11.2 Except as expressly allowed in this Agreement, the receiving party
will hold in confidence and not use or disclose any Confidential Information of
the disclosing party and shall similarly bind its employees having access to the
Confidential Information in writing. Confidential Information shall not include
information that (a) is or has become readily publicly available without
restriction through no fault of the receiving party or its employees or agents;
or (b) is received without restriction from a third party lawfully in possession
of such information and lawfully empowered to disclose such information; or (c)
was rightfully in the possession of the receiving party without

                                       5
<PAGE>   6

restriction prior to its disclosure by the other party; or (d) was independently
developed by employees or consultants of the receiving party without access to
such Confidential Information.

        11.3 Except as expressly allowed in this Agreement, the receiving party
will hold in confidence and not use or disclose any Confidential Information of
the disclosing party and shall similarly bind its employees in writing.

        11.4 Except as to potential investors or acquirers, or to the extent
that disclosure is required by applicable securities and other laws and
regulations, the Parties agree not to disclose either directly or indirectly, at
any time, to any third party, except to the Accounts, whether by way of press
release, announcement, or in any other manner without the prior written consent
of the other party, the existence, intent or terms of this Reseller Agreement,
in whole or in part. The parties plan to issue a joint press release with
respect to this Reseller Agreement.

12. INTELLECTUAL PROPERTY. No title or property rights, including all copyright
and other intellectual property rights of either party shall be assigned,
transferred, modified or otherwise effected as a result of any term or provision
of this Reseller Agreement.

13. INITIAL TERM AND TERMINATION.

        13.1 The initial term of this Reseller Agreement ("Initial Term") shall
commence on the Effective Date and shall continue for a period [***]*. Either
party may terminate this Reseller Agreement during the Initial Term upon [***]*
written notice.

        13.2 Except as provided for in 3.1 and except as otherwise provided for
in this Agreement, at the end of the Initial Term, this Reseller Agreement shall
automatically renew for successive annual periods until terminated by either
party upon [***]* written notice prior to the end of the current term.

        13.3 Upon expiration or termination of this Reseller Agreement, all
rights and licenses of the parties herein shall cease except that Section10,
11,12,14,15, 18, 28 and any rights to payment already accrued shall survive
termination.

14. DEFAULT.

        14.1 Reseller or ANDA shall be considered in default ("Default") on the
occasion of a voluntary or involuntary bankruptcy (and not dismissed within 120
days), liquidation where there are no successors in interest to the relevant
assets or business, assignment for the benefit of creditors or any admission in
writing of an inability to pay debts when due.

        14.2 Within thirty (30) days of Default or material breach of the terms
of this Reseller Agreement by either party, written notice may be provided by
the defaulting party. A sixty (60) day period ("Cure Period") shall be granted
to correct the Default or breach. At the end of the Cure Period, if the Default
or breach has not been corrected, either party may terminate this Reseller
Agreement upon written notice.

        14.3 Upon termination of this agreement for Default, ANDA shall grant to
Reseller a non-exclusive, non-transferable, non-sublicenseable license to
manufacture, maintain and support the Product and software for the Product so as
to and only to ensure an uninterrupted supply of the Product and to support
existing Reseller end users during the remaining term of this Agreement.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                       6
<PAGE>   7

15. LIMITATION OF LIABILITY; INDEMNIFICATION.

        15.1 EXCEPT AS PROVIDED HEREIN, NEITHER PARTY SHALL BE LIABLE TO THE
OTHER OR TO ANY USER OF THE PRODUCT FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL,
SPECIAL OR EXEMPLARY DAMAGES (EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES) SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR
ANTICIPATED PROFITS OR LOST BUSINESS OR (COST OF PROCUREMENT OF SUBSTITUTE
GOODS). THIS LIMITATION DOES NOT APPLY TO DAMAGES THAT ARISE OUT OF RESELLER'S
UNAUTHORIZED MODIFICATION OF THE PRODUCT OR PLUGS, RESELLER'S BREACH OF THE
LICENSE RESTRICTIONS AND/OR BREACH OF CONFIDENTIALITY.

        15.2 ANDA shall, at its option and own expense, defend or settle, any
claim, suit or proceeding brought against Reseller related to any claim of
infringement of any patent, copyright or other proprietary right of any third
party by the Products or Plugs, pursuant to the terms of this Agreement. ANDA
shall indemnify and hold Reseller harmless from and against any costs, expenses,
settlements or damages, including reasonable attorney fees, related to any such
claim of infringement, provided that Reseller (a) promptly notifies ANDA in
writing of the action; (b) permits ANDA full authority to defend or settle the
action; and (c) cooperates with, and provides all available information,
assistance and authority to, ANDA to defend or settle the action. ANDA shall not
be liable for any costs, expenses, damages or fees incurred by Reseller in
defending such action or claim, unless authorized by ANDA in advance and in
writing. The foregoing obligations of ANDA do not apply with respect to the
Products or Plugs or portions or components thereof (i) not supplied by ANDA ;
(ii) which are modified by Reseller, if the alleged infringement relates to such
modifications; (iii) combined with software or hardware products where the
alleged infringement relates to such combination, (iv) where Reseller continues
the allegedly infringing activity after being notified thereof or after being
informed and provided with modifications that would have avoided the alleged
infringement; or (v) where Reseller's use of the Products or Plugs is not
strictly in accordance with the purpose of this Reseller Agreement.

        15.3 If a Product or Plug is, or in the opinion of ANDA is likely to
become, the subject of a claim, suit or proceeding of infringement, ANDA may in
its sole discretion (a) procure, at no cost to Reseller, the right to continue
using the affected Product or Plug; (b) replace or modify the Product or Plug to
render it non-infringing, or (c) if, in ANDA's reasonable opinion, neither (a)
nor (b) above are commercially feasible, terminate this Reseller Agreement and
refund the amounts paid by Reseller for such Products (as depreciated on a
straight-line basis over a period of 36 months).

16. FUTURE RELATIONSHIP.

        16.1 The parties to this Reseller Agreement desire to explore
cooperating in the development of solutions for the service provider market.
Toward this mutually beneficial objective, each party agrees to the following:

                (i) to meet with the other party at least once every three (3)
months after the Effective Date hereof to review the parties' respective
business and development schedules and the status of the Reseller Agreement, as
well as to discuss the potential of future joint development efforts,

                (ii) to publicly support industry forums, consortia and
technologies that are concordant with both parties' respective solutions, and

                                       7
<PAGE>   8

                        (iii) to use the other's name, trademarks, logos and
other identifying information in relevant marketing literature and programs,
subject to the other's prior written approval in each instance however, lack of
objection within 5 business days of request shall be deemed as approval

        16.2 Reseller agrees to promptly supply ANDA with its requirements of
Reseller's SDSL/HDSL/HDSL-2 mini-module or simi-module ("Module") in order to
allow ANDA to perform the integration described in Section 16.3

        16.3 ANDA intends to integrate the Module into the ANDA's UAP release 1
of the Product to provide native HDSL connectivity. ANDA may incorporate this
Module into an ANDA Plug which Reseller will then OEM from ANDA for sale to the
Accounts on terms to be mutually agreed upon. ANDA agrees to allow Reseller to
purchase the appropriate DSL Plug at a cost that is independent of the cost of
the Module. The intent of this arrangement is to allow Reseller to resell the
DSL Plug without having to double mark up the HDSL Plug. ANDA can charge actual
handling and integration cost for the plugs using the Module.

        16.4 Notwithstanding the foregoing, the parties to this Reseller
Agreement are independent contractors. Neither party is an agent,
representative, or partner of the other party. Neither party shall have any
right, power or authority to enter into any agreement for or on behalf of, or
incur any obligation or liability of, or to otherwise bind, the other party.
This Reseller Agreement and the provisions of this Section 16 shall NOT be
interpreted or construed to create an association, joint venture or partnership
between the parties or to impose any partnership obligation or liability upon
either party.

        16.5 Both ANDA and Reseller agree to support discussions for ANDA's
right to purchase components through Reseller or directly from Reseller's
third-part vendors at Reseller's discount.

        16.6 Both ANDA and Reseller agree to discuss an assignment of a
manufacturing license for the Product to Reseller.

17. ASSIGNMENT. Neither party may assign (voluntarily, by operation of law or
otherwise) this Reseller Agreement or any right, interest or benefit under this
Reseller Agreement without the prior written consent of the other party;
however, either party may assign this Reseller Agreement to any entity that
acquires substantially all of its stock, assets, or business. Subject to the
foregoing, this Reseller Agreement shall be fully binding upon, inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and assigns.

18. FORCE MAJEURE. Neither party shall be liable for, or be considered in breach
of or default under this Reseller Agreement on account of, any delay or failure
to perform as required by this Reseller Agreement as a result of any causes or
conditions which are beyond such party's reasonable control and which such party
is unable to overcome by the exercise of reasonable diligence. Such causes or
conditions may include war, riots, embargoes, strikes, acts of third parties
including telephone or other utilities, or other concealed acts of workmen,
casualties, accidents or other occurrences beyond such party's control.

19. NOTICE. Any notice, approval, request, authorization, direction or other
communication under this Reseller Agreement shall be given in writing and shall
be deemed to have been delivered and given for all purposes (i) on the delivery
date if delivered personally to the party to whom the same is directed; or (ii)
two business days after the mailing date, whether or not actually received, if
sent by U.S. mail, return receipt requested, postage and charges prepaid, or any
other means of rapid mail delivery for which a receipt is available, to the
address of the party to whom the same is directed as set forth in this

                                       8
<PAGE>   9

Reseller Agreement. Either party may change its address specified above by
giving the other party notice of such change in accordance with this Section 19.

20. RETURN OF INFORMATION. Upon the termination of this Reseller Agreement, each
party shall promptly return all information, documents, manuals and other
materials belonging to the other party except as otherwise provided in this
Reseller Agreement.

21. ENTIRE RESELLER AGREEMENT. This Reseller Agreement sets forth the entire
agreement between the parties, and supersede any and all proposals,
communications and prior agreements of the parties, either written or oral, with
respect to the transactions set forth herein. Neither party shall be bound by,
and each party specifically objects to, any term, condition or other provision
which is different from or in addition to the provisions of this Reseller
Agreement (whether or not it would materially alter this Reseller Agreement) and
which is proffered by the other party in any correspondence or other document,
unless the party to be bound thereby specifically agrees to such provision in
writing. Any different or additional terms of any related purchase order,
confirmation, or similar form even if signed by both parties after the date
hereof shall have no force or effect.

22. AMENDMENT. No change, amendment or modification of any provision of this
Reseller Agreement shall be valid unless set forth in a written instrument
signed by the party to be bound thereby.

23. FURTHER ASSURANCES. Each party shall take such action (including, but not
limited to, the execution, acknowledgment and delivery of documents) as may
reasonably be requested by any other party for the implementation or continuing
performance of this Reseller Agreement.

24.. CONSTRUCTION. In the event that any provision of this Reseller Agreement
conflicts with the law under which this Reseller Agreement is to be construed or
if any such provision is held invalid by a court with jurisdiction over the
parties to this Reseller Agreement, such provision shall deemed to be restated
to reflect as nearly as possible the original intentions of the parties in
accordance with applicable law, and the remainder of this Reseller Agreement
shall remain in full force and effect.

25. APPLICABLE LAW; JURISDICTION. This Reseller Agreement shall be interpreted,
construed and enforced in all respects in accordance with the laws of the state
of California. Each party irrevocably consents to the exclusive jurisdiction of
the courts of the state of California and the federal courts situated in the
state of California, in connection with any action to enforce the provisions of
this Reseller Agreement, to recover damages or other relief for breach or
default under this Reseller Agreement, or otherwise arising under or by reason
of this Reseller Agreement.

26. DISPUTE RESOLUTION. The parties agree to cooperate with each other to
attempt to settle all disputes arising under this Agreement without resort to
mediation or arbitration. If the parties are unsuccessful in resolving a dispute
within forty-five (45) days from the date the parties begin attempting to
resolve it, either party may submit the dispute to mediation in Orange County,
California, before a mediator from the telecommunications industry. Neither
party may initiate arbitration proceedings until mediation is completed. All
disputes which the parties fail to resolve through cooperation and mediation
shall be finally resolved by binding arbitration in Orange County, California by
a single arbitrator in accordance with the Federal Arbitration Act, 9 USCA 1,
et. seq. in effect at the time. Each party shall bear its own costs of preparing
and presenting its case; the costs of arbitration, including the fees of the
arbitrators shall be shared equally by the parties unless the award provides
otherwise. Notwithstanding anything contained in this paragraph, each party
shall have the right to institute judicial proceedings against the other party
or anyone acting by, through or under such other party in order to enforce the

                                       9
<PAGE>   10

instituting party's rights hereunder through reformation of contract, specific
performance, injunction or similar equitable relief.

27. EXPORT CONTROL. Reseller shall comply with the U.S. Foreign Corrupt
Practices Act and all applicable export laws, restrictions, and regulations of
any United States or foreign agency or authority and not export or re-export or
allow the export or re-export of any product, technology, or information it
obtains or learns pursuant to this Reseller Agreement in violation of such laws,
restrictions or regulations. Reseller shall obtain and bear all expenses
relating to any necessary licenses and/or exemptions with respect to the export
from the United States of the Products to any location in compliance with all
applicable laws and regulations prior to delivery thereof by Company.

28. COMPETITIVE PRODUCT. During the term of this Reseller Agreement, Reseller
shall not develop a product or solution that contains an ability to translate
[***]* and TR-08, ESF or D4 formats. Reseller shall provide ANDA six (6) months
advance notice of any such development plans; whereon ANDA may terminate this
Reseller Agreement at any time.

        IN WITNESS WHEREOF, the parties hereto have executed this Reseller
Agreement as of the date first above written.

ANDA Networks, Inc.                         PairGain Technologies, Inc.

By:                                         By:
   --------------------------------            ---------------------------------

Name: Charles Kenmore                       Name: Mike Pascoe

Title: President/CEO                        Title: President/CEO

Date:                                       Date:
     ------------------------------              -------------------------------

Address:

ANDA, Inc.                                  PairGain Technologies, Inc.

Attn:                                       Attn:
     ------------------------------              -------------------------------

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

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

Phone:                                      Phone:
      -----------------------------               ------------------------------

Fax:                                        Fax:
    -------------------------------             --------------------------------

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                       10
<PAGE>   11

                                    EXHIBIT A
                       PRODUCT AND APPLICATION DEFINITION

"PRODUCT" SHALL MEAN BOTH RELEASE 0 AND RELEASE 1 OF ANDA'S NETWORKS UNIVERSAL
ACCESS PLATFORM ("UAP") AS MORE FULLY DESCRIBED BELOW:

        RELEASE 0 PRODUCT:

Product release 0 is a [***]* concentrator to translate D4 and ESF to [***]*.
Release 0 consists at a minimum of the following features:

           (1) Support [***]*

           (2) [***]*

           (3) Support for loop start and ground start POTS on hook transmission

           (4) [***]* management via async RS-232 [***]*

           (5) [***]* alarm reporting and [***]*

           (6) Support of management objects [***]* and the [***]*

The following features are Optional Features for Release 0. ANDA retains the
option to include these Optional Features in Release O in the event (i) Reseller
pays for ANDA's non-reoccurring expenses associated with ANDA's development of
the Optional Features, or (ii) Reseller and ANDA mutually agree that the
business justifies ANDA's development of the Optional Features.

           (1) Full DS0 cross-connect functionality that allows ISDN, DDS or
               other specials to be groomed onto non-[***]* DS1 trunks

           (2) Support of all management objects described in supplement 3 to
               [***]* issue 1

Proper functioning of Release 0 operation shall be available to all Reseller
accounts which purchase the Product regardless of whether the account purchases
the optional Software Maintenance Agreement.

           RELEASE 1 PRODUCT:

           Product release 1 has all the functionality of release 0 with TR-08
           (mode 1) to [***]* translation and additional frame relay transport
           and concentration functionality.

"APPLICATION" SHALL BE DEFINED AS THE FOLLOWING FOR RELEASE 0 OF THE PRODUCT AND
RELEASE 1 OF THE PRODUCT, RESPECTIVELY:

RELEASE 0 APPLICATION:

           The Release 0 Product defined above when implemented with
           PG-Flex/Plus COT in TR-08 mode 1 to convert [***]* interface
           technology to TR-08 signaling format as modified jointly by ANDA and
           Reseller.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      A-1
<PAGE>   12

RELEASE 1 APPLICATION:

The Release 1 Product [***]* with [***]* to
[***]* and [***]* via [***]*, [***]*, and
[***]* technology. The [***]* technology to a [***]* in a
[***]* will be using [***]* or [***]*.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      A-2
<PAGE>   13

                                    EXHIBIT B
                              PLUGS AND PERIPHERALS

<TABLE>
<S>                  <C>                                 <C>
UAP-988-2100         Shelf                               [***]*
UAP-988-2110         System board                        [***]*
UAP-988-2300         T1 Interface                        [***]*
UAP-988-2400         Channelized DS-3 Interface          [***]*
UAP-988-2410         HDSL Interface                      [***]*
UAP-988-2420         Frame Relay Server                  [***]*
</TABLE>

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      B-1
<PAGE>   14

                                    EXHIBIT C
                        ACCOUNTS (EXCLUSIVE FOR YEAR-ONE)

<TABLE>
<CAPTION>
Account                                               Quota
-------                                              -------
<S>                                                  <C>
[***]*                                               $[***]*
[***]*                                               $[***]*
[***]*                                               $[***]*
[***]*                                               $[***]*
[***]*                                               $[***]*
</TABLE>

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      C-1
<PAGE>   15

                                   EXHIBIT D:
                               SUPPORT TO ACCOUNTS

ANDA Networks shall use reasonable efforts to:

     (i)      Support the sales of the Application at the exclusive Accounts

     (ii)     Provide lab resources and staff to support integration
              verification testing of the Product with the PD-Plus platform in
              ANDA Networks' lab by April 1, 1999 (target date only).

     (iii)    Make available two release 0 version (identified on Exhibit A) of
              the Product for Reseller's lab by April 15, 1999 (target date
              only).

     (iv)     Provide reasonable support for the Products to Reseller sales and
              customer service engineers, and train Reseller's Product Line
              Manager pursuant to the Reseller Agreement.

     (v)      Develop, manufacture, sell and support systems and Plugs for the
              Product in order to support delivery of Product by May 14th, 1999
              (target date only).

     (vi)     Enter into limited mutual developments with Reseller to provide
              greater offering of services, and integrate test and management
              interfaces to customers of the ANDA Networks and Reseller combined
              platform. This limited development is to be evaluated by the
              revenue that is beneficial to both ANDA Networks and Reseller.

                                      D-1

<PAGE>   16

                                    EXHIBIT E
                      LISTING PRICING AND DISCOUNT SCHEDULE

The following table is the current pricing for the UAP release 0 parts:

<TABLE>
<CAPTION>
PART NUMBER               DESCRIPTION                      LIST PRICE
------------        ---------------------------            ----------
<S>                 <C>                                    <C>
UAP-988-2100        Shelf                                  $[***]*
UAP-988-2110        System board                           $[***]*
UAP-988-2300        T1 Interface (12 port/card)            $[***]*
</TABLE>

        The following table illustrates a typical half-filled configuration of
ANDA UAP release 0 under different discount structure:

<TABLE>
<CAPTION>
PART NUMBER                DESCRIPTION                 QTY           RESELLER PRICE          LIST PRICE
--------------------------------------------------------------------------------------------------------
<S>              <C>                                  <C>            <C>                     <C>
    [***]*       HDT
UAP-988-2100     Shelf                                  1             $[***]*                 $[***]*
UAP-988-2110     System board                           2             $[***]*                 $[***]*
UAP-988-2300     T1 Interface (12 port/card)            10            $[***]*                 $[***]*
                                            TOTAL                     $[***]*                 $[***]*
UAP-988-2600     Maintenance Fee ([***]* of system      1             $[***]*                 $[***]*
                 per year)
                 --------------------------------------------
                 PRICE PER T1                        $[***]*
                 PRICE PER DS0                       $[***]*
                 --------------------------------------------

   [***]*        HDT
UAP-988-2100     Shelf                                  1             $[***]*                 $[***]*
UAP-988-2110     System board                           2             $[***]*                 $[***]*
UAP-988-2300     T1 Interface (12 port/card)            10            $[***]*                 $[***]*
                                            TOTAL                     $[***]*                 $[***]*
UAP-988-2600     Maintenance Fee ([***]* of system      1             $[***]*                 $[***]*
                 per year)
                 --------------------------------------------
                 PRICE PER T1                        $[***]*
                 PRICE PER DS0                       $[***]*
                 --------------------------------------------

   [***]*        HDT
UAP-988-2100     Shelf                                  1             $[***]*                 $[***]*
UAP-988-2110     System board                           2             $[***]*                 $[***]*
UAP-988-2300     T1 Interface (12 port/card)            10            $[***]*                 $[***]*
                                            TOTAL                     $[***]*                 $[***]*
UAP-988-2600     Maintenance Fee ([***]* of system      1             $[***]*                 $[***]*
                 per year)
                 --------------------------------------------
                 PRICE PER T1                        $[***]*
                 PRICE PER DS0                       $[***]*
                 --------------------------------------------

   [***]*        HDT
</TABLE>

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      E-1

<PAGE>   17

<TABLE>
<S>              <C>                                  <C>            <C>                     <C>
UAP-988-2100     Shelf                                  1             $[***]*                   $[***]*
UAP-988-2110     System board                           2             $[***]*                   $[***]*
UAP-988-2300     T1 Interface (12 port/card)            10            $[***]*                   $[***]*
                                            TOTAL                     $[***]*                   $[***]*
UAP-988-2600     Maintenance Fee ([***]* of system      1             $[***]*                   $[***]*
                 per year)
                 --------------------------------------------
                 PRICE PER T1                        $[***]*
                 PRICE PER DS0                       $[***]*
                 --------------------------------------------
</TABLE>

The table below is the Year-One Discount Schedule. Year-One is the first
12-months after the Effective Date of the Reseller Agreement. The volume
discount schedule has only been determined for Year-One. Prior to renewing the
second year of the term of the Agreement, the parties shall review the previous
years revenue and calculate the discount for the second year of the term.

Year-One Discount Schedule

<TABLE>
<CAPTION>
YEARLY REVENUE      DISCOUNT SCHEDULE
--------------      -----------------
<S>                 <C>
[***]*                   $[***]*
[***]*                   $[***]*
[***]*                   $[***]*
[***]*                   $[***]*
</TABLE>

Each quarter, the parties shall review the revenue received by ANDA for Product
ordered by Reseller. ANDA will make the discount adjustment in good faith by
setting a new Performance Quota for the upcoming quarter. The new Performance
Quota will be based on (i) [***]* and (ii) [***]*. The new Performance Quota
will be multiplied by four (4) to calculate the adjusted discount under the
Year-One schedule. The discount for the following quarter will be based on the
schedule above:

The percentage discount for the each quarter shall be determined by the
following quarterly performance guide. The first contract quarter will start at
[***]* discount schedule.

<TABLE>
<CAPTION>
      CONTRACT Q1           CONTRACT Q2          CONTRACT Q3           CONTRACT Q4            TOTAL             DISCOUNT
  -------------------    -----------------    -----------------     -----------------   -----------------       --------
  PERFORMANCE QUOTA $    PERFORMANCE QUOTA    PERFORMANCE QUOTA     PERFORMANCE QUOTA         YEARLY
                                                                                        PERFORMANCE QUOTA
  -------------------    -----------------    -----------------     -----------------   -----------------       --------
<S>                      <C>                  <C>                   <C>                 <C>                     <C>
      $[***]*                $[***]*              $[***]*               $[***]*              $[***]*             $[***]*
      $[***]*                $[***]*              $[***]*               $[***]*              $[***]*             $[***]*
      $[***]*                $[***]*              $[***]*               $[***]*              $[***]*             $[***]*
      $[***]*                $[***]*              $[***]*               $[***]*              $[***]*             $[***]*
</TABLE>

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      E-2
<PAGE>   18

[***]*

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      E-3
<PAGE>   19

                                    EXHIBIT F
                                SERVICE AGREEMENT

ANDA Product software release is identified and controlled by a release number
and a revision number: x.y where x is the release number and y is the periodic
revision number. ANDA Product software release procedure is designed to support
periodic maintenance revisions as well as application feature releases. The
periodic maintenance revisions are normally made available quarterly by ANDA to
enhance the application features. The following items if developed will be
considered enhanced application features for Release 0:

     (1)  [***]* support for specials such as ISDN, EBS,

     (2)  Value added management in the Application such as developments
          providing network management access to the PairGain Flex(Plus) through
          the Product.

     (3)  Value added channel testing and drop testing in the Application such
          as developments providing testing access to the PairGain Flex(Plus)
          through the Product.

     (4)  Any other developments targeted to [***]* applications or enhancements
          to the Application in [***]*

Such enhanced application features will be available as Optional Features of the
Release 0 Application for end customers who subscribe to Software Maintenance
Service.

To receive the periodic maintenance software revisions, a customer has to
purchase an optional Software Maintenance Service Contract. The Software
Maintenance Service Contract will not cover a software package with a different
release number.

Customers do not have to purchase the Software Maintenance Agreement to receive
an upgrade that fixes a bug in the functionality of their purchased Release. The
end customer satisfaction over proper operation will distinguish bugs from
feature enhancements.

The UAP is a platform to support many different applications. Customer may
purchase an application software package to enable a specific application on the
UAP. When the application software package is available, customer may purchase
the package to upgrade the ANDA-UAP for a different application.

As a reseller to ANDA Networks, Reseller may resell both the Software
Maintenance Service Contract and Software Application Package at a mutually
agreed discount schedule.

* CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTION HAS BEEN FILED
  SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                      E-4

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