Document:

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                                                                   EXHIBIT 10.2

                           ACCELERATED NETWORKS, INC.

                     FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT

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

        NOW THEREFORE, IT IS HEREBY AGREED:

        1. Sale of Stock. Subject to the terms hereof, the Company shall sell to
Purchaser and Purchaser shall purchase from the Company, subject to Section 4
hereof, two million two hundred fifty thousand (2,250,000) shares of common
stock of the Company (the "Stock") at a price of $.001 per share ("Purchase
Price").

        2. Payment of Purchase Price. Purchaser shall pay the Purchase Price by
delivering to the Company at the time of execution of this Agreement a check for
Two Thousand Two Hundred Fifty Dollars ($2,250) and a duly executed blank
Assignment Separate from Certificate in the form attached hereto as Exhibit A.

        3. Issuance of Shares. Upon receipt by the Company of the Purchase
Price, the Company shall issue a duly executed certificate evidencing the Stock
in the name of Purchaser, to be held in escrow until expiration of the Company's
Purchase Option described in Section 4 below.

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

                a. In the event Purchaser ceases to be continuously employed by
the Company, or a parent or subsidiary of the Company, for any reason, with or
without cause, the Company may exercise the Purchase Option. For the purpose of
this paragraph 4, Purchaser's "continuous employment" shall cease when Purchaser
ceases to be actively employed by the Company or a parent or subsidiary of the
Company as determined by and in the sole discretion of the Board of Directors of
the Company. A leave of absence (regardless of the reason therefor) shall be
deemed to constitute the cessation of Purchaser's active employment unless such
leave is authorized by the Company in writing and Purchaser returns to work
within the time specified in such authorization or in any amendment thereto. The
date when continuous employment ceases is hereinafter referred to as the
Termination Date.

        The Company shall have the right at any time within sixty (60) days
after the later of the Termination Date or the date any approved leave
terminates (if employee fails to return within the time specified) to purchase
the Stock from Purchaser at the price per share paid by Purchaser pursuant to
this Agreement ("Option Price"). The Purchase Option shall terminate, and cease
to be exercisable, with respect to any and all Stock in which Purchaser acquires
a

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vested interest. For purposes of this Agreement, Purchaser shall acquire a
vested interest in 24% of the Stock on October 31, 1997. Purchaser shall acquire
a vested interest in the remaining 76% of the stock in equal monthly
installments over the 38 months thereafter, such that Purchaser shall have a
fully vested interest in all of the Stock on December 31, 2000. Notwithstanding
the foregoing, Purchaser shall not acquire a vested interest in any shares of
Stock after the Termination Date.

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

                b. The Purchase Option, if exercised by the Company, shall be
exercised by written notice signed by an officer of the Company and delivered or
mailed as provided in subsection 9(b). The Company may pay for the shares of
Stock it has elected to repurchase (i) by delivery of a check in the amount of
the repurchase price for the Stock being repurchased, (ii) by cancellation by
the Company of an amount of Purchaser's indebtedness to the Company or (iii) by
a combination of (i) and (ii) so that the combined payment and cancellation of
indebtedness equals such repurchase price. If exercised by the assignees
pursuant to subsection 4(c), the Purchase Option shall be exercised by written
notice signed by the exercising assignees and delivered or mailed as provided in
subsection 9(b). Such assignees shall pay for the shares of Stock they have
elected to repurchase by delivery to Purchaser or his executor of a check in the
amount of the repurchase price.

                c. In the event the Company for any reason elects not to
exercise the Purchase Option pursuant to subsection 4(b), the Company may assign
it, provided that the Purchase Option shall not extend beyond the 60 days
described in subsection 4(a). In the event that the Company or such assignee
does not elect to exercise the Purchase Option as to all of the shares of Stock
subject to it, the Purchase Option shall expire as to all shares that the
Company and such assignees have not elected to purchase.

        5. Right of First Offer. Stock subject to the Purchase Option may not be
transferred. Before any shares of Stock registered in the name of Purchaser and
not subject to the Purchase Option may be sold or transferred (including
transfer by operation of law or other involuntary transfer and excluding
transfers by gift, will or intestate succession of Purchaser to Purchaser's
spouse or lineal descendants or ancestors or a trust for the benefit of such
persons if the transferee agrees in writing in a form satisfactory to the
Company to be subject to the terms of this Agreement) such shares shall first be
offered to the Company in the following manner:

                a. Purchaser or his transferee shall deliver a notice by
certified mail ("Notice") to the principal business office of the Company
stating (i) his bona fide intention to sell or transfer such shares, (ii) the
number of such shares to be sold or transferred, (iii) the price and terms, if
any, for which he proposes to sell or transfer such shares, and (iv) the name
and address of the proposed purchaser or transferee and that such purchaser or
transferee is committed to acquire the stated number of shares on the stated
price and terms.

                                       2.
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                b. The Company shall have the right at any time within sixty
(60) days of receipt of the Notice to purchase some or all of the shares to
which the Notice refers at the price per share specified in the Notice, or if no
price is specified therein, at the fair market value thereof as determined by
the Board of Directors in good faith. Said right shall be exercised by written
notice signed by an officer of the Company and delivered or mailed as provided
in subsection 10(b), which notice shall specify the time, place and date for
settlement of such purchase.

                c. In the event the Company does not, for any reason, exercise
its right pursuant hereto the Company may assign such right, provided such right
shall not extend beyond such 60-day period. If exercised by the assignee
pursuant hereto, the right to purchase shall be exercised by written notice
signed by the exercising assignee and delivered or mailed as provided in
subsection 10(b), which notice shall specify the time, place and date for
settlement of such purchase. Purchaser shall sell to the Company or such
assignees the number of shares that either of them elect to purchase, such sale
to be consummated within seventy-five (75) days after the date of the Notice.

                d. If some or all of the shares to which the Notice refers are
not purchased, as provided in subsections 5(b) and 5(c) hereof, Purchaser may
sell such shares to the person named in the Notice at the price and terms
specified in the Notice, provided that such sale or transfer is consummated
within seventy-five (75) days of the date of said Notice to the Company, and
provided, further, that any such sale is in accordance with all the terms and
conditions hereof. If Purchaser does not consummate the sale or transfer within
such seventy-five (75) day period, the right provided hereby shall be deemed to
be revived with respect to such shares and no sale or transfer shall be effected
without first offering the shares in accordance herewith.

                e. Notwithstanding the above, neither the Company nor the
assignees of the Company shall have any right under this Section 5 at any time
subsequent to the closing of a bona fide, firm commitment underwritten public
offering of the common stock of the Company pursuant to a registration statement
declared effective under the Securities Act of 1933, as amended (the "Act").

        6. "Market Stand-Off" Agreement. Purchaser hereby agrees that, during
the period specified by the Company and the underwriter or underwriters of
common stock (or other securities) of the Company, following the effective date
of a registration statement of the Company filed under the Act, Purchaser shall
not, to the extent requested by the Company and such underwriter, directly or
indirectly, sell, offer or contract to sell (including, without limitation, any
short sale), grant any option to purchase or otherwise transfer or dispose of
(other than to donees who agree to be similarly bound) any securities of the
Company at any time during such period except common stock included in such
registration, provided, however, that (a) such agreement shall be applicable
only to the first such registration statement of the Company which covers common
stock (or other securities) to be sold on its behalf to the public in an
underwritten offering and (b) all officers and directors of the Company holding
securities of

                                       3.
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the Company enter into similar agreements.

        In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to common stock held by Purchaser until
the end of such period.

        7. Representations and Warranties of Purchaser.

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

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

        Purchaser understands that if the Company does not register with the
Securities and Exchange Commission pursuant to sections 12 or 15 of the
Securities Exchange Act of 1934, as amended, or if a registration statement
covering the Stock (or a filing pursuant to the exemption from registration
under Regulation A of the Act) under the Act is not in effect when Purchaser
desires to sell the Stock, Purchaser may be required to hold the Stock for an
indeterminate period. Purchaser also acknowledges that Purchaser understands
that any sale of the Stock that might be made by Purchaser in reliance upon Rule
144 under the Act may be made only in limited amounts in accordance with the
terms and conditions of that rule and that Purchaser may not be able to sell the
Stock at the time or in the amount Purchaser so desires. Purchaser is familiar
with Rule 144 and understands that the Stock constitutes "restricted securities"
within the meaning of that Rule.

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

                d. Limitations on Disposition. Purchaser agrees that in no event
will Purchaser make a disposition of any of the Stock, unless and until (a)
Purchaser shall have notified the Company of the proposed disposition and shall
have furnished the Company with a

                                       4.
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statement of the circumstances surrounding the proposed disposition, and (b)
Purchaser shall have furnished the Company with an opinion of counsel
satisfactory to the Company to the effect that (i) such disposition will not
require registration of such Stock under the Act, or (ii) that appropriate
action necessary for compliance with the Act has been taken, or (c) the Company
shall have waived, expressly and in writing, its rights under clauses (a) and
(b) of this subparagraph. In addition, prior to any disposition of any of the
Stock, the Company may require the transferee or assignee to provide in writing
investment representations and its agreement to the provisions of this Agreement
in a form acceptable to the Company.

        The Company shall not be required (i) to transfer on its books any
shares of Stock of the Company which shall have been sold or transferred in
violation of any of the provisions set forth in this Agreement, or (ii) to treat
as owner of such shares or to accord the right to vote as such owner or to pay
dividends to any transferee to whom such shares shall have been so transferred.
Purchaser shall, during the term of this Agreement, exercise all rights and
privileges of a shareholder of the Company with respect to the Stock after the
issuance, and prior to the repurchase, thereof.

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

                        (i) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN FOUNDER/EMPLOYEE SHAREHOLDER
AGREEMENT WHICH INCLUDES A REPURCHASE RIGHT, A MARKET STAND-OFF AGREEMENT AND A
RIGHT OF FIRST REFUSAL ON THE SALE OF THE SECURITIES. COPIES OF THE AGREEMENT
MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

                        (ii) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY
NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES,
OR DELIVERY OF AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF SUCH
SECURITIES THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION IS IN FULL
COMPLIANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, OR UNLESS SOLD IN
COMPLIANCE WITH RULE 144 UNDER SUCH ACT."

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

        8. Escrow of Shares.

                a. Escrow Holder. The Stock issued under this Agreement shall be

                                       5.
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held in escrow by the Secretary of the Company, as escrow holder ("Escrow
Holder"), along with the Assignment Separate from Certificate executed by
Purchaser in blank in the form attached hereto as Exhibit A, until expiration of
the Company's Purchase Option described in Section 4 above.

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

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

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

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

                f. Adjustment of Stock and Option Price. If, at any time or from
time to time, there is (i) a dividend of any security, stock split or other
change in the character or amount of any of the outstanding securities of the
Company, or (ii) any consolidation, merger or sale of all, or substantially all,
of the assets of the Company, then, in such event, any and all new, substituted
or additional securities or other property to which Purchaser is entitled by
reason of his ownership of the Stock shall be immediately subject to the escrow
referred to in Section 8 (to the extent the Stock is then so subject), shall be
deposited with the Escrow Holder, and shall be included in the word "Stock" for
purposes of this Agreement, and shall be subject to the Purchase Option and the
right of first offer pursuant to Section 5 with the same force and effect as the
shares of Stock presently subject to this Agreement, the Purchase Option and the
right of first offer. While the total Option Price shall remain the same after
each such event, the Option Price per share of Stock upon exercise of the
Purchase Option shall be appropriately adjusted as

                                       6.
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determined by the Board of Directors of the Company.

        9. Miscellaneous.

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

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

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

                d. Amendments and Waivers. This Agreement represents the entire
understanding of the parties with respect to the subject matter hereof and
supersedes all previous understandings, written or oral. This Agreement may only
be amended with the written consent of the parties hereto and the Company's
assignees pursuant to subsection 4(c) and Section 5 hereof, or the successors or
assigns of the foregoing, and no oral waiver or amendment shall be effective
under any circumstances whatsoever.

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

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

                                       7.
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                           [Signature Page to Follow]

                                       8.
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        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                            ACCELERATED NETWORKS, INC.

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

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

                                            PURCHASER:

                                            /s/ Kiran Munj
                                            ------------------------------------
                                                Kiran Munj

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

                                       9.
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                                    EXHIBIT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

        FOR VALUE RECEIVED, I, _______________, hereby sell, assign and transfer
unto _________________________________ (______) shares of the Common Stock of
Accelerated Networks, Inc., standing in my name on the books of said corporation
represented by Certificate No. ____ herewith and do hereby irrevocably
constitute and appoint attorney to transfer said stock on the books of the
within-named corporation with full power of substitution in the premises.

Dated:____________________.

                                            Signature:

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

        This Assignment Separate from Certificate was executed in conjunction
with the terms of Founder/Employee Shareholder Agreement between the above
assignor and Accelerated Networks, Inc., dated March 28, 1997.

<PAGE>   11

                       ELECTION PURSUANT TO SECTION 83(b)

                          OF THE INTERNAL REVENUE CODE

        This statement is being made under Section 83(b) of the Internal Revenue
Code, pursuant to Treas. Reg. Section 1.83-2.

        (1) The person who performed the services is:

            Name: Kiran Munj
            Address: 5743 Corsa Ave., Suite 221
                     Westlake Village, CA 91362

            Taxpayer Ident. No.:  ____________________
            Taxable Year: Calendar Year 1997

        (2) The property with respect to which the election is being made is
2,250,000 shares of the Common Stock of Accelerated Networks, Inc.

        (3) The property was issued on March 28, 1997.

        (4) The property is subject to a repurchase right pursuant to which the
issuer has the right to repurchase the property at the original purchase price
if for any reason the shareholder's employment with the issuer is terminated.
The issuer's repurchase right lapses in a series of installments ending on
December 31, 2000.

        (5) The fair market value at the time of transfer (determined without
regard to any restriction other than a restriction which by its terms will never
lapse) is $.001 per share.

        (6) The amount paid for such property is $.001 per share.

        (7) A copy of this statement was furnished to Accelerated Networks, Inc.
for whom Purchaser rendered the service underlying the transfer of property.

                                            ------------------------------------
                                            Purchaser

                                            ------------------------------------
                                            Spouse (if any)

Dated:
      ------------------

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                               FIRST AMENDMENT TO
                     FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT

        THIS FIRST AMENDMENT TO FOUNDER/EMPLOYEE SHAREHOLDER AGREEMENT dated as
of May 30, 1997 (the "Amendment") amends that certain Founder/Employee
Shareholder Agreement ("Founder Agreement") by and between Accelerated Networks,
Inc., a California corporation ("the Company"), and Kiran Munj ("Purchaser").

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

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

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

                3. Amendments to Founder Agreement.

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

                        (b) Section 4 shall be deleted in its entirety and
replaced with the following:

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

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

                b. Voluntary Termination shall include any voluntary cessation
        of employment with the Company unless such cessation of employment
        occurs within twelve (12) months of any of the following actions (unless
        such action is consummated with Purchaser's written approval): (i) a
        material decrease in the salary paid or benefits provided by the Company
        to Purchaser from the salary paid or benefits provided at the time of
        such decrease, other than a decrease consistent with an overall

                                      12.
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        decline in the Company's financial condition or prospects and consistent
        with executive officer salary reductions generally, (ii) a material
        diminution in Purchaser's level of job responsibilities or position with
        the Company, or (iii) the relocation of Purchaser's place of employment
        to a location which is not within fifty (50) miles of the Company's
        current offices or Purchaser's current residence. Notwithstanding the
        foregoing, Voluntary Termination shall not include a cessation of
        employment arising from Purchaser's death or Purchaser's inability to
        perform his duties to the Company by reason of any medically
        determinable physical or mental impairment.

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

                d. The Company shall have the right at any time within sixty
        (60) days after the Termination Date to purchase the Stock from
        Purchaser at the price per share paid by Purchaser pursuant to this
        Agreement ("Option Price"). Stock subject to the Purchase Option may not
        be transferred by Purchaser (except for transfers by operation of law or
        other involuntary transfers and transfers by gift, will or intestate
        succession of Purchaser to Purchaser's spouse or lineal descendants or
        ancestors or a trust for the benefit of such persons if the transferee
        agrees in writing in a form satisfactory to the Company to be subject to
        the terms of the Founder Agreement). The Purchase Option shall
        terminate, and cease to be exercisable, with respect to any and all
        Stock in which Purchaser acquires a vested interest. For purposes of
        this Agreement, Purchaser shall acquire a vested interest in 50% of the
        Stock immediately. Purchaser shall acquire a vested interest in the
        remaining 50% of the stock in equal monthly installments over the 48
        months beginning on April 30, 1997, such that Purchaser shall have a
        fully vested interest in all of the Stock on April 29, 2001.
        Notwithstanding the foregoing, Purchaser shall not acquire a vested
        interest in any shares of Stock after the Termination Date.
        Notwithstanding the foregoing, Purchaser shall acquire a vested interest
        in all unvested stock upon consummation of a merger, consolidation,
        tender offer or other transaction or series of transactions in which
        securities possessing more than fifty percent (50%) of the total
        combined voting power of the Company's outstanding securities are
        transferred to a person or persons different from the persons holding
        those securities immediately prior to such transaction, or the sale,
        transfer or other disposition of all or substantially all of the
        Company's assets in complete liquidation or dissolution of the Company.

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

                                      13.
<PAGE>   14

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

                (c) Sections 5 and 6 shall be deleted in their entirety.

                (d) Clause (i) of subsection 7.e shall be deleted in its
entirety and replaced with the following:

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

                (e) Subsection 9.b shall be deleted in its entirety and replaced
with the following:

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

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

        5. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of California without regard to the
conflicts of law provisions thereof.

                                      14.
<PAGE>   15

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

                                            ACCELERATED NETWORKS, INC.

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

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

                                            PURCHASER:

                                            /s/ Kiran Munj
                                            ------------------------------------
                                                Kiran Munj

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

                                      15.<PAGE>   1
                                                                   EXHIBIT 10.12

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF
THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS
ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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

                          PRODUCT PROCUREMENT AGREEMENT

                                 BY AND BETWEEN

                         CTC COMMUNICATIONS GROUP, INC.

                                       AND

                           ACCELERATED NETWORKS, INC.

                                      DATED

                                 APRIL 21, 1999

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

<PAGE>   2

                       PRODUCT PROCUREMENT AGREEMENT (PPA)
                              FOR STRATEGIC ACCOUNT

        THIS PRODUCT PROCUREMENT AGREEMENT (PPA) FOR STRATEGIC ACCOUNT (this
"AGREEMENT"), effective as of this 21st day of April, 1999 (the "EFFECTIVE
DATE"), is made and entered into by and between ACCELERATED NETWORKS, INC., a
California corporation with its principal place of business at 301 Science
Drive, Moorpark, CA 93021 ("SELLER"), and CTC COMMUNICATIONS CORP., a
Massachusetts corporation with its principal place of business at 360 2nd
Avenue, Waltham, MA 02451 ("CUSTOMER"). CUSTOMER and SELLER are also hereinafter
referred to individually as a "PARTY" and collectively as the "PARTIES".

        WHEREAS, CUSTOMER desires to expand its network throughout the
Northeastern United States, and to facilitate such expansion, CUSTOMER wishes to
purchase from SELLER certain products (the "PRODUCT" or "PRODUCTS") more fully
described on Attachment A hereto at the discounted rates (the "DISCOUNTS") more
fully described on Attachment B hereto; and

        WHEREAS, SELLER desires to provide the Products at the Discounts to
CUSTOMER pursuant to the terms and conditions of this Agreement.

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

        1. PRODUCT ORDERS.

        1.1 Initial Purchase Order. Upon execution of this Agreement, CUSTOMER
shall submit a blanket purchase order (the "INITIAL PURCHASE ORDER") for the
Products having an aggregate purchase price of at least (US$8,000,000). CUSTOMER
will periodically submit purchase orders to SELLER for release of the Products
covered by the Initial Purchase Order as per the timeframes described in
Attachment B. CUSTOMER may specify the carrier and mode of transportation for
shipment of the Products. Unless specifically stated to the contrary in a
particular purchase order signed by representatives of both Parties, the terms
and conditions of this Agreement shall be controlling over any inconsistent or
conflicting terms or provisions contained in any purchase order pursuant hereto.

        1.2 Subsequent Purchase Orders. During the term of this Agreement,
CUSTOMER shall submit purchase orders in addition to the Initial Purchase Order
in order to meet the Minimum Purchase Commitment as indicated and defined on
Attachment B hereto. The terms of this Agreement shall apply to all such
subsequent purchase orders.

                                                                              1.
<PAGE>   3

        1.3 Submission of Orders. All purchase orders, including purchase orders
for release of the Products, shall be sent by fax to the following number
(followed by a hard copy sent by mail pursuant to Section 13.2 hereof):

        ACCELERATED NETWORKS, INC;
        ATTN:  SALES ADMINISTRATION
        FAX:  (805) 553-9690
        TEL:  (805) 553-9680

        1.4 Cancellation and Rescheduling. CUSTOMER may cancel delivery of
Products pursuant to a purchase order without charge upon written notice to
SELLER not less than [***] prior to the scheduled delivery date. CUSTOMER will
be responsible for payment of one hundred percent (100%) of the amount of any
portion of a purchase order that is canceled less than [***] prior to the
scheduled delivery date. CUSTOMER may extend the date for delivery of Products
pursuant to a purchase order [***] without charge upon written notice to SELLER
not less than [***] prior to the scheduled delivery date; provided, that, the
new delivery date is on or before the: [***].

        1.5 Pricing. Product prices payable by CUSTOMER and applicable Discounts
are set forth in Attachment B. Prices are exclusive of all taxes, customs,
duties or similar tariffs and fees, shipping and insurance charges which SELLER
may be required to pay or collect upon the sale or delivery of the Products or
upon collection of the sales price, all of which shall be CUSTOMER's
responsibility. SELLER shall promptly extend to CUSTOMER any price reductions
made by SELLER in its generally available, then current published list prices
for Software or Products. Such price reduction shall apply to all purchase
orders received on or after the effective date of such price reduction.

        1.6 Payment. Terms of payment are net thirty (30) days of CUSTOMER's
receipt of SELLER's invoice, unless CUSTOMER fails to pay within thirty (30)
days of receipt of SELLER's invoice three (3) times within any twelve (12) month
period, in which case payment terms shall be, at SELLER's election, cash on
delivery (C.O.D.), in advance of delivery or by irrevocable letter of credit in
favor of SELLER. All payments shall be made in U.S. dollars in the United
States. The payment date shall be deemed the date that CUSTOMER initiates the
wire transfer or the date CUSTOMER mails the payment pursuant to the
requirements of Section 13.2.

        2. DELIVERY AND ACCEPTANCE.

        2.1 Delivery. Products shall be delivered free on board (FOB) SELLER's
facility or other place of shipment. Shipments will be made to the delivery
address specified on CUSTOMER's purchase order. In the absence of a specified
delivery address on the purchase order, delivery will be made to CUSTOMER's
facility, or any other standard location designated by CUSTOMER Shipping
arrangements shall be mutually agreed upon by the Parties prior to

-------------
        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                              2.
<PAGE>   4

delivery. SELLER shall use its best efforts to fill CUSTOMER's orders up to the
committed units on Attachment B within [***] of receiving a purchase order, and
shall use its commercially reasonable efforts to fill (by full or partial
shipment) CUSTOMER's purchase orders for Products in excess of those indicated
on Attachment B within [***] of receiving a purchase order.

        2.2 Inspection and Acceptance of Deliveries. CUSTOMER shall have the
right to visually inspect all Products ordered pursuant to this Agreement for a
period of [***] following receipt of delivery. If any delivered Product fails to
conform to the applicable purchase order or release, in whole or in part,
CUSTOMER may reject the delivery and CUSTOMER shall promptly return the rejected
Product(s) to SELLER at SELLER's risk and expense. Promptly following SELLER's
general release of Software (as defined below) SELLER will provide CUSTOMER with
a reasonable number of copies of such Software release for the sole purpose of
performing acceptance testing during the [***] following receipt of the
applicable Software copies (the "ACCEPTANCE TEST PERIOD"). If any Software, or
portion thereof, is determined by CUSTOMER during the Acceptance Test Period to
fail to conform to the applicable specifications in any material adverse way,
then CUSTOMER may reject the delivery and CUSTOMER shall promptly return the
rejected Software to SELLER at SELLER's risk and expense. CUSTOMER shall notify
SELLER if such Software release fails to conform to the applicable
specifications in any materially adverse way, specifying in reasonable detail so
as to permit SELLER to reproduce the failures. CUSTOMER's failure to notify
SELLER of any such failure of the Software release before the end of the
applicable Acceptance Test Period shall be deemed acceptance of Software
release. Upon receipt of the rejected Product(s), or Software SELLER shall
promptly ship replacement Product(s) or Software to CUSTOMER, at SELLER's risk
and expense until Product(s) or Software is reasonably determined by CUSTOMER to
be satisfactory as per applicable specifications. CUSTOMER shall have the right
to test the replacement Product(s), including the Software, as provided above in
this Section 2.2. SELLER shall ship the remaining portion of the order within
five (5) business days of the earlier of the date such CUSTOMER notifies SELLER
of its acceptance of the Software or the date CUSTOMER is deemed to have
accepted such Software.

        2.3 Pre-shipment Review. If requested by CUSTOMER, a representative of
CUSTOMER may participate, to the extent applicable, in SELLER's preshipment
configuration, prestaging and inspection of Products at SELLER's facility or any
reasonable location where Products are held or stored as determined by SELLER.

-------------
        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                              3.
<PAGE>   5

        3. SOFTWARE LICENSE.

        3.1 License Grant. SELLER grants CUSTOMER, subject to the terms and
conditions set forth in this Agreement, a non-exclusive, non-transferable,
non-sublicensable perpetual license to use the software, including any
enhancements, upgrades, and patches, used in connection with or comprising any
Product (including software contained in firmware embedded in a Product) (the
"SOFTWARE"). All copies of the Software are licensed and not sold. As between
the Parties, SELLER retains all title to (except as expressly licensed by
SELLER), and rights (including all intellectual property and proprietary rights
anywhere in the world) and interest in the Software.

        3.2 License Restrictions. CUSTOMER shall not, and shall use commercially
reasonable efforts to deter others from, (i) copying, modifying, distributing,
or creating any derivative work of the Software or including the Software in any
other software, (ii) deleting, altering or obscuring any copyright or other
notice or proprietary legend appearing in the Software or on any documentation,
media, master or package materials for the Software provided by SELLER or (iii)
reverse assembling, decompiling, reverse engineering (except to the extent
permitted by applicable law) or otherwise attempting to derive the source code
(or the underlying ideas, structure, sequence, organization or algorithms) from
the Software.

        3.3 Liability for Infringement. SELLER shall defend CUSTOMER against any
suit, claim, proceeding or threatened suit brought against CUSTOMER alleging
that the licensing to, or use by CUSTOMER of, any Software or Product furnished
hereunder infringes any patent ("INFRINGEMENT CLAIM"). SELLER shall pay all
litigation costs, reasonable attorneys' fees, settlement payments and damages
awarded or resulting from any such suit, claim, or proceeding provided, that,
CUSTOMER (i) notifies SELLER in writing within a reasonable time of its actual
knowledge of any such claim, suit, or proceeding; (ii) gives SELLER the right to
control or direct the investigation, preparation, defense and settlement of any
claim, suit or proceeding related thereto; and (iii) gives SELLER reasonable
assistance and cooperation for the defense or settlement thereof. SELLER shall
not be liable for, and CUSTOMER shall defend, indemnify and hold SELLER harmless
in respect of, any suit, claim, proceeding or threatened suit and all litigation
costs, reasonable attorneys' fees, settlement payments and damages awarded or
resulting from any claim, suit or proceeding based on (i) CUSTOMER's willful,
knowing, or deliberate infringement of a patent, copyright, trade secret,
trademark or other proprietary right; (ii) any Software, Product or portion
thereof (a) not supplied by SELLER to CUSTOMER or directed by SELLER that
CUSTOMER purchase, (b) designed in accordance with CUSTOMER's specifications, or
to the extent the infringement results from compliance with such specifications,
(c) modified by CUSTOMER, to the extent the infringement results from such
modification, (d) combined with other products, processes or materials not
supplied, specified or distributed by SELLER, to the extent the infringement
results from such combination, (e) where CUSTOMER continues allegedly infringing
activity after being notified thereof and after being provided with a
non-infringing modification or workaround that would have avoided the alleged
infringement, or (f) where CUSTOMER's use of the Software or Product is incident
to an infringement not resulting primarily from such Software or Product or is
intentionally outside the scope of the license granted in Section 3.1. Neither
Party may enter into any settlement or other agreement without prior written
consent of the other Party under which such other Party would be obligated to
make any payment or incur any liability. If any Software

                                                                              4.
<PAGE>   6

or any Product becomes, or in SELLER's reasonable opinion is likely to become,
the subject of an infringement claim, SELLER, in addition to providing
indemnity, may at SELLER's option (i) procure for CUSTOMER the right to continue
using the alleged infringing Software or Product; (ii) replace or modify the
same with equivalent or better Software or Product so that CUSTOMER's use is
non-infringing; or (iii) accept return of the affected portion of the Software
or Product and refund to CUSTOMER the depreciated value of the Software or
Product so returned (as amortized on a straight-line basis over three (3) years
from the Effective Date).

        4. MONTHLY MEETINGS. SELLER and CUSTOMER shall each designate one
representative to serve as a liaison with the other Party (each, a
"REPRESENTATIVE" and collectively the "REPRESENTATIVES"). The Representatives
will meet, either in person or by telephone, to discuss in good faith matters
relating to this Agreement including Product delivery schedules, joint marketing
activities, sales training needs, price changes, review of the forecast and new
Product features and enhancements. Such meetings will take place on a monthly
basis at a mutually agreed upon location. Each Party shall bear its own costs
incurred in attending or participating in such meetings.

        5. SELLER'S WARRANTY.

        5.1 Product Warranty. SELLER warrants to CUSTOMER (i) For a period of
one (1) year from the date of acceptance, that the hardware Products shall be
free from material defects in materials and workmanship; (ii) for a period of
ninety (90) days from the date of acceptance, any existing Software shall
perform in accordance with applicable specifications in all material respects
identified in the user manual of the then current release and any new or
specially developed software or Product shall perform in accordance with
mutually agreeable documented specifications in all material respects; and (iii)
services performed by SELLER hereunder shall be performed in a professional and
workmanlike manner and in accordance with current industry standards. SELLER's
warranty does not extend to any Product that (a) is modified or altered by the
CUSTOMER or at the CUSTOMER's direction; (b) is not maintained to SELLER's
maintenance recommendations set forth in the applicable documentation actually
received by CUSTOMER; (c) is operated in a manner other than that specified by
SELLER, (d) has its serial number removed or altered; or (e) is treated with
abuse, negligence or other improper treatment (including, without limitation,
use outside the recommended environment).

        5.2 Remedies. Products delivered to CUSTOMER by SELLER hereunder which
do not comply With the, warranties in Sections 5.1, 5.4 or 5.5 hereof, and are
returned to SELLER during the applicable warranty period shall be repaired or
replaced at SELLER's option, at no cost to CUSTOMER. Subject to Section 10.4
hereof, if SELLER cannot or determines that it is not practical to, repair or
replace a returned Product, the price paid by CUSTOMER for such Product will be
credited and applied to future orders.

        5.3 Disclaimer. SELLER MAKES NO WARRANTIES (OTHER THAN AS EXPRESSLY
PROVIDED IN SECTIONS 5.1, 5.4, 5.5 AND 6 HEREOF) WITH RESPECT TO THE PRODUCTS OR
ANY SERVICES, AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. FURTHER,
SELLER DOES NOT WARRANT

                                                                              5.
<PAGE>   7

THE USE, OR THE RESULTS OF THE USE, OF THE PRODUCTS OR THAT ANY SOFTWARE WILL BE
ERROR-FREE.

        5.4 Year 2000 Compliance Warranty. SELLER represents and warrants (the
"YEAR 2000 WARRANTY") that (a) all calendar-related processing by the Products
of date data or of any system date shall not cause the Products to cease to
operate in accordance with their applicable specifications, (b) all data fields
for the date data contained in the Products are four-digit fields capable of
indicating century and millennium, and (c) that SELLER has verified through its
testing procedures that no change in the system date (including the change from
the year 1999 to the year 2000 and leap year calculations) will cause the
Products to cease to operate in accordance with their applicable specifications,
provided that, all other products and systems, including, without limitation,
hardware, software and firmware used in combination with the Products, properly
and accurately exchange date data with the Products.

        5.5 Infringement Warranty. SELLER represents and wan ants to the
CUSTOMER that, to the best of SELLER's knowledge at the time of each delivery of
Software or Products hereunder, such Software and Products do not infringe the
intellectual property rights of any third parties.

        6. OTHER REPRESENTATIONS AND WARRANTIES. The Parties represent, warrant
and covenant that (i) they shall comply with good business practices and all
laws and regulations relevant to this Agreement or the subject matter hereof;
(ii) they shall use the then current names used for the Products, provided that
all advertisements, promotional materials, packaging and anything else bearing
any trademark of the SELLER shall identify SELLER as the trademark owner of the
Products and shall be subject to SELLER's prior written approval, which approval
shall not be unreasonably withheld or delayed; (iii) they shall comply with all
export laws, restrictions, national security controls and regulations of the
United States or other applicable foreign agency or authority; and (iv) shall
not export or re-export, or allow the export or re-export of any Product or
Proprietary Information (as defined below) or any direct product thereof in
violation of any such restrictions, laws or regulations, or without all required
licenses and proper authorizations, to or from any Group D:I or E:2 country (or
national of such country) specified in the then current U.S. Export
Administration Regulations (or any successor supplement or regulations).

        7. LIMITATION OF LIABILITY. UNLESS CAUSED OR CONTRIBUTED TO BY A PARTY'S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (I) ANY AMOUNTS IN
EXCESS IN THE AGGREGATE OF THE AMOUNTS PAID TO IT (IN THE CASE OF SELLER) OR (IN
THE CASE OF CUSTOMER) PAID OR OWED BY IT HEREUNDER DURING THE TWELVE (12) MONTH
PERIOD PRIOR TO DATE THE CAUSE OF ACTION AROSE, (II) ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOST PROFITS OR LOST DATA OR (III) COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES. THE LIMITATIONS OF THIS SECTION 7
SHALL NOT APPLY TO ANY BREACH OF SECTIONS 3.2, 3.3 OR 9.

                                                                              6.
<PAGE>   8

        8. RELATIONSHIP OF THE PARTIES. The Parties expressly acknowledge that
they are independent contractors in the performance of this Agreement, and each
Party is solely liable for all labor and related expenses it incurs in
connection with this Agreement. Neither Party will have, nor will it represent
that it has, any power, right or authority to bind the other Party, or to assume
or create any obligation or responsibility, express or implied, on behalf of the
other Party.

        9. PROPRIETARY INFORMATION.

        9.1 The Parties acknowledge that in the course of performing their
duties under this Agreement, each may obtain confidential and proprietary
information of the other ("PROPRIETARY INFORMATION"). Such Proprietary
Information may include, but is not limited to, trade secrets, know-how,
inventions, techniques, processes, programs, schematics, software source code,
data, customer lists, financial information, and sales and marketing plans.
Nothing will be considered Proprietary Information unless either (i) it is or
was disclosed in tangible form and is conspicuously marked "Confidential,"
"Proprietary" or the like or (ii) it is or was disclosed in non-tangible form
and orally identified as confidential at the time of disclosure and is
summarized in tangible form conspicuously marked "Confidential," "Proprietary"
or the like within thirty (30) days of the original disclosure. Notwithstanding
the foregoing, source code of Software supplied to CUSTOMER shall be deemed
SELLER's Proprietary Information. Each Party shall at all times keep in trust
and confidence all Proprietary Information of the other Party and, during the
term of this Agreement and for three (3) years after its termination, shall not
use such Proprietary Information other than in the course of performing its
duties under this Agreement nor shall it disclose any such Proprietary
Information to any third party without the written consent of the other. Upon
termination or expiration of this Agreement or upon the request of the
disclosing Party, each Party shall promptly return all manifestations of the
other's Proprietary Information in its possession.

        9.2 Neither Party shall have an obligation to maintain the
confidentiality of information for which it can demonstrate to the reasonable
satisfaction of the disclosing Party that (a) it received rightfully from
another party without restrictions on disclosure prior to its receipt from the
disclosing Party; (b) the disclosing Party has disclosed to an unaffiliated
third party without any obligation to maintain such information in confidence;
or (c) is independently developed by the obligated Party.

        9.3 Further, the receiving Party may disclose Proprietary Information as
required by final, unappealable governmental or judicial order, provided such
Party gives the disclosing Party prompt written notice prior to such disclosure,
and complies with any protective order (or equivalent) imposed on such
disclosure, and provides the disclosing Party the option of either seeking a
protective order or having its Proprietary Information be subject to the same
protective orders as may apply to the disclosing Party's own information. Except
as otherwise provided herein, neither Party shall disclose, disseminate or
distribute any of the other Party's Proprietary Information to any third party
without the other Party's prior written permission.

        9.4 All Proprietary Information, unless otherwise specified in writing,
shall remain the property of the disclosing Party, shall be used by the
receiving Party only for the purpose intended, and such Proprietary Information,
including all copies thereof, shall be returned to the

                                                                              7.
<PAGE>   9

disclosing Party or destroyed upon the earliest to occur of (a) the written
request of the disclosing Party; or (b) the date of termination or expiration of
this Agreement. The receiving Party shall promptly provide a written
certification the disclosing Party that all Proprietary Information has been
returned or destroyed.

        9.5 Each Party agrees that, without the other Party's written consent,
it will not use the name, service marks or trademarks of the other Party or of
any of its affiliates in any advertising, publicity releases or sales
presentations. Neither Party shall take any actions which will in any manner
compromise the other Party's registered trademarks and/or service marks.

        9.6 The Parties agree that a breach of the terms of this Section 9 would
result in irreparable injury to the disclosing Party for which a remedy in
damages would be inadequate and that the disclosing Party shall be entitled to
seek injunctive relief to prevent the breach or threatened breach, in addition
to remedies otherwise available at law or in equity.

        10. TERM AND TERMINATION.

        10.1 Term. This Agreement shall commence on the Effective Date and shall
remain in force for a period of three (3) years from the date of the first
shipment unless earlier terminated as provided in this Section 10. Thereafter,
this Agreement shall automatically renew for successive one (1) year terms
unless a Party provides written notice to the other Party no later than sixty
(60) days prior to the expiration of the then current term of such Party's
intent not to renew. Notwithstanding anything to contrary contained in this
Agreement, the license granted in Section 3.1 shall survive the expiration or
any termination of this Agreement for reasons other than for breach by the
CUSTOMER of Section 3.2 or intentional violation of Section 9.

        10.2 Termination for Cause. This Agreement may be terminated by either
Party for cause immediately upon receipt of written notice upon the occurrence
of any of the following events: (i) if the other Party ceases to do business, or
otherwise terminates its business operations; provided, however, that the
acquisition of all or substantially all of a Party's stock, assets or business
shall not be grounds for termination of this Agreement; or (ii) if the other
Party breaches any material provision of this Agreement and fails to cure such
breach within thirty (30) days of receipt of written notice describing the
breach, provided, however, that a breach of any of the obligations set forth in
Section 3.2 or an intentional violation of Section 9 shall be grounds for
immediate termination of this Agreement by the non-breaching Party; or (iii) if
the other Party becomes insolvent or seeks protection under any bankruptcy,
receivership, trust deed, creditors arrangement, composition or comparable
proceeding, or if any such proceeding is instituted against the other (and not
dismissed within ninety (90) days).

        10.3 Effect of Termination. Upon any termination or expiration of this
Agreement, all pending purchase orders, including purchase orders for release of
Products under a blanket purchase order shall be canceled as of the effective
date of termination or expiration, all sums payable to SELLER shall be due and
payable on the effective date of termination or expiration and all licenses
granted to CUSTOMER under this Agreement shall immediately terminate and
CUSTOMER shall discontinue all distribution of the Products, provided, however,
that, except in the event of a breach by CUSTOMER of Section 3.2 or intentional
violation of Section 9, CUSTOMER shall be entitled to continue to use the
Products pursuant to Section 3.1.

                                                                              8.
<PAGE>   10

        10.4 If the Software or Products, or parts thereof, do not meet the
applicable specifications in any materially adverse respect at any time during
the duration of the license granted for such Software or Products, then SELLER
shall develop an action plan to cure the deficiency within seventy (70) days of
the discovery of the deficiency and deliver such action plan to CUSTOMER within
ten (10) days of SELLER's discovery, or the receipt of notice from CUSTOMER, of
the deficiency. Notwithstanding anything to the contrary contained herein, if
SELLER does not diligently pursue the action plan or the deficiency is not
corrected to the reasonable satisfaction of CUSTOMER within such seventy (70)
day period, then CUSTOMER may, as its sole remedy, terminate this Agreement
without any further liability to SELLER. Nothing contained herein shall obligate
the CUSTOMER to pay for any Products that do not conform to any purchase order
or release or any Software that does not meet the applicable specifications in
any materially adverse respect.

        10.5 In addition to the right of CUSTOMER to terminate this Agreement as
set forth in this Section 10, the Parties shall have the following rights: If at
any time competent public authority shall revoke or suspend CUSTOMER's Federal
Communications Commission (FCC) permit to construct or operate its network, or
if CUSTOMER without fault on its part shall be denied access reasonably
requested to the incumbent local exchange carrier's ("ILEC") central office due
to the Product not meeting the ILEC's standards, CUSTOMER may issue a written
notice to SELLER to "STOP WORK". In such event all work in progress shall be
halted and any executory items on the schedules in the Attachments hereto shall
be automatically canceled. At such time as the impediment is removed, the
Parties shall in good faith negotiate new schedules considering commitments
SELLER has made in the interim, and SELLER shall be entitled to an equitable
adjustment in the price to be paid under this Agreement for any increased costs
to SELLER associated with the Stop Work notice. If such impediment is not
removed within six (6) months, then CUSTOMER may issue notice to SELLER of
termination of this Agreement, together with any documentation evidencing the
circumstances, and be released from any remaining minimum commitment hereunder.
The CUSTOMER hereby represents and warrants to the SELLER as of the date of this
Agreement that, to the best of its knowledge, no circumstances exist that would
permit CUSTOMER to exercise its rights under this Section 10.5.

        11. PUBLICITY. The Parties shall announce this Agreement and the
establishment of the relationship between CUSTOMER and SELLER under this
Agreement pursuant to a joint press release to be mutually agreed upon. The
Parties agree to submit to each other for approval all other press releases
relating to this Agreement and to not publish any press release without prior
approval of the other Party, which approval shall not be unreasonably withheld
or delayed.

        12. ASSIGNMENT. This Agreement shall be binding on successors and
assigns, provided, however, this Agreement may not be assigned or transferred by
one Party without the prior written consent of the other Party, which consent
shall not be unreasonably withheld or delayed. Notwithstanding the foregoing
sentence, an assignment by operation of law to a company under common ownership
and/or control with the assigning Party, or to an acquirer of all or
substantially all of the assigning Party's stock, assets or business to which
this Agreement pertains, shall not require the consent of the other Party, but
rather, in such cases, the assigning Party shall give written notification of
such assignment to the other Party. Any purported assignment in violation of
this Section 12 shall be null and void.

                                                                              9.
<PAGE>   11

        13. MISCELLANEOUS.

        13.1 No Waiver. A waiver by either Party of any provision of this
Agreement or breach, in any one instance, shall not be construed as a waiver of
any other provision or subsequent breach thereof.

        13.2 Notices. All notices or communications of any kind made or required
to be given pursuant to this Agreement shall be in writing and delivered by
facsimile, if to SELLER, to Mr. Suresh Nihalani, Accelerated Networks, Inc.,
fax: (805) 553-9690, tel: (805) 553-9860, and if to CUSTOMER, to Mr. Frederic
Kunzi, CTC Communications Corp., fax: (781) 890-1613, tel: (781) 466-1391, or by
hand delivery or by nationally recognized overnight mail service, or sent by
first class mail, postage prepaid to the address for such Party specified in
this first paragraph of this Agreement or such other address or number as such
Party shall provide notice of in accordance with this Section 13.2.

        13.3 Governing Law. The validity, interpretation and effect of this
Agreement shall be governed by the law of the State of California, without
regard to conflicts of law provisions thereof.

        13.4 Severability. If any provision of this Agreement is held by a court
of competent jurisdiction to be illegal, invalid or unenforceable, that
provision shall be limited or eliminated to the minimum extent necessary so that
this Agreement shall otherwise remain in full force and effect and enforceable.

        13.5 Force Majeure. A Party shall not be liable for non-performance or
delay in performance (other than of confidentiality obligations) caused by any
event reasonably beyond the control of such Party including, but not limited to
wars, hostilities, revolutions, riots, civil commotion, national emergency,
strikes, lockouts or other labor disputes or shortages or inability to obtain
material or equipment, unavailability of supplies, compliance with laws or
regulation (including, without limitation, those related to infringement),
epidemics, fire, flood, earthquake, force of nature, explosion, embargo, or any
Act of God, or any law, proclamation, regulation, ordinance or other act or
order of any court, government or governmental agency.

        13.6 Entire Agreement; Amendment. This Agreement, including all
Attachments to this Agreement, constitutes the entire agreement between the
Parties relating to the subject matter hereof and all prior or simultaneous
proposals, negotiations, representations, conversations, discussions and
agreements, whether written or oral, among the Parties and all past dealing or
industry custom. This Agreement may not be amended except by a writing signed by
the Parties, or by a purchase order as described in Section 1.1.

        13.7 Counterparts. This Agreement may be executed in two or more
counterparts, ach of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                                                             10.
<PAGE>   12

        IN WITNESS WHEREOF, the Parties hereto have executed this Product
Procurement Agreement (PPA) for Strategic Account effective as of the day and
year first above written.

"SELLER":                                    "CUSTOMER":

ACCELERATED NETWORKS, INC.                   CTC COMMUNICATIONS CORP.

By:     /s/ Suresh Nihalani                  By:   /s/ Frederic Kunzi
        ----------------------------               -------------------------
        Suresh Nihalani                      Name:    Frederic Kunzi
        President & CEO                      Title:   CTO

                                                                             11.

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