Document:

<PAGE>   1
                                                                    Exhibit 10.8

                        SETTLEMENT AGREEMENT AND RELEASE

         This Settlement Agreement and Release ("Settlement Agreement") is made
as of August 17, 2000 ("Effective Date"), by and among Greka Energy Corporation
("Greka") and Randeep S. Grewal ("Mr. Grewal") and Capco Resources, Ltd. ("Capco
Resources"), Capco Energy, Inc. ("Capco Energy"), and Ilyas Chaudhary ("Mr.
Chaudhary") (collectively, the "Parties"). Greka and Mr. Grewal are referred to
as the "Greka Parties." Capco Resources, Capco Energy, and Mr. Chaudhary are
referred to as the "Capco Parties."

                                    RECITALS

            A. An action is pending in the United States District Court for the
District of Colorado captioned Capco Resources, Ltd. v. Greka Energy Corp., et
al. v. Capco Energy, Inc., et al., Civil Action No. 99-K-2155 (the "Action").
Claims have been asserted in the Action by the Greka Parties against the Capco
Parties and by the Capco Parties against the Greka Parties.

            B. Merrill, Lynch, Pierce, Fenner & Smith, Inc. ("Merrill Lynch")
holds a judgment in the principal amount of four-hundred-sixty-one-thousand-
seven-hundred-and-thirty-nine dollars and seventy-two cents ($461,739.72)
against Capco Resources, which judgment was entered on or about June 8, 2000 in
an action in the Superior Court of the State of California for the County of San
Francisco in an action entitled Merrill, Lynch, Pierce, Fenner & Smith, Inc. v.
Capco Resources Ltd., Case No. 311156 (the "Merrill Lynch Judgment"). Merrill
Lynch has stated its intention to sell a portion of Greka shares represented by
Greka Energy Corporation Stock Certificate No. 3189 ("Certificate 3189") to
satisfy the Merrill Lynch Judgment.

            C. While expressly denying and disclaiming wrongdoing or liability
of any kind whatsoever, the Parties desire to enter into this Settlement
Agreement in order to avoid further expense, inconvenience, and the distraction
of litigation and to put to rest all claims among the Parties that were or might
have been alleged in the Action. Execution of this Settlement Agreement is not
an admission by any Party regarding any contentions made by any party to the
Action.

         NOW, THEREFORE, for good and valuable consideration, including the
mutual covenants set forth below, the receipt and sufficiency of which the
Parties hereby acknowledge, the Parties hereby agree as follows.

<PAGE>   2

                             AGREEMENTS AND RELEASES

         1. Greka shall purchase from Capco Resources, and Capco Resources shall
sell to Greka, eight-hundred-thousand (800,000) shares of Greka common stock
(the "Transferred Shares") at a price of six dollars and fifty cents ($6.50) per
share, for a total consideration of five-million-and-two-hundred-thousand
dollars ($5,200,000.00). This consideration shall be paid in three parts: (1)
five-hundred-thousand dollars ($500,000.00) shall be paid by Greka to Capco
Resources not later than August 25, 2000 (At the time of the first payment of
five-hundred-thousand dollars ($500,000), Capco Resources shall deliver and
assign to Greka 76,923 of the Transferred Shares to Greka. This transfer shall
be final and complete at that time, and shall not be reversed.); (2)
five-hundred-thousand dollars ($500,000.00) shall be set off against the
obligation of Capco Resources under Paragraph 2, below; and (3)
four-million-and-two-hundred-thousand dollars ($4,200,000.00) shall be paid by
Greka to Capco Resources at the Closing. The Closing of the sale of the
Transferred Shares shall take place at the time of the payment of
four-million-and-two-hundred-thousand dollars ($4,200,000.00), which payment
shall constitute the final installment of a total payment by Greka to Capco
Resources of five-million-and-two-hundred-thousand dollars ($5,200,000.00) as
provided in this paragraph. Capco Resources shall assign the remaining
Transferred Shares to Greka at the Closing. Within five (5) business days of
receipt of the Transferred Shares by Greka, Greka shall cancel the Transferred
Shares and the Transferred Shares shall become authorized but unissued stock.
The Parties shall use their best efforts to have the Closing by September 30,
2000, but in no event shall the Closing take place later than October 30, 2000,
at 10:30 a.m. (Denver time), at the law offices of Ballard Spahr Andrews &
Ingersoll, LLP, 1225 17th Street, Suite 2300, Denver, Colorado.

         2. Capco Resources shall pay to Greka the sum of five-hundred-thousand
dollars ($500,000.00) as consideration for the releases being given in paragraph
8 to the persons and entities listed in Exhibit A. This sum will be paid by
setting it off against the sum of five-million-and-two-hundred-thousand dollars
($5,200,000.00) to be paid by Greka to Capco Resources under paragraph 1, above.

         3. At the time of the Closing of the sale of the Transferred Shares,
Capco Resources shall satisfy the Merrill Lynch Judgment with funds from the
payment from Greka to Capco Resources in the amount of
four-million-and-two-hundred-thousand dollars ($4,200,000.00), and Capco
Resources shall keep title to the seventy-five thousand (75,000) shares
represented by Certificate 3189.

         4. Capco Resources shall retain the four-hundred-and-ninety-thousand
(490,000) shares of Greka common stock that Capco Resources acquired pursuant to
the Stock Exchange Agreement dated November 23, 1998, between Horizontal
Ventures, Inc. and Saba Acquisub, Inc. and the shareholders of Saba Acquisub,
Inc. that remain after subtracting the eight-hundred-thousand (800,000)
Transferred Shares to be sold to Greka pursuant to paragraph 1 above; however,
if Greka breaches this Settlement Agreement, then Greka shall register
five-hundred -and-ninety-thousand (590,000) shares and purchase only
seven-hundred-thousand (700,000)

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<PAGE>   3

shares, as reflected in the Stipulated Judgment attached as Exhibit D. These
four-hundred-ninety-thousand (490,000) shares, or five-hundred-ninety-thousand
(590,000) shares in the event of Greka's breach, shall be called the "Registered
Shares." Greka shall make all reasonable best efforts to file at its sole
expense with the United States Securities and Exchange Commission, by October 1,
2000, but in no event later than November 1, 2000, a registration statement on
Form S-3, or such other form which may be available to Greka if Form S-3 is not
available for any reason, to register the Registered Shares (and no others on
this registration statement) for resale without any restrictions, to have said
registration statement declared effective at the earliest possible date after
filing and maintain the effectiveness of the registration statement. In no event
shall Greka file a registration statement at any time after the Effective Date
that does not include registration of the Registered Shares for resale without
any restrictions, except those imposed by state and federal laws, rules, or
regulations.

         At its expense, Greka will keep such registration continuously
effective until December 31, 2002, or for a period of two years after the date
on which the registration statement becomes effective with the SEC, or until
Capco Resources has completed the distribution of all the Registered Shares,
whichever first occurs. Greka shall make all reasonable best efforts to cause,
at Greka's sole expense, the registration or qualification of the Registered
Shares under the state securities laws of all states reasonably requested by
Capco Resources, including but not limited to California, Colorado and New York.
Greka shall use its reasonable best efforts to cause its Common Stock to remain
listed on the NASDAQ National Market system so long as Capco Resources holds the
Registered Shares.

         5. This paragraph shall constitute a voting agreement between the
Parties, which voting agreement and any proxy granted pursuant to the voting
agreement shall be effective only during periods of time when Greka is in
compliance with all terms of the Settlement Agreement. For such time, not to
extend beyond Midnight EST on December 31, 2002, as the Capco Parties or any
entity or person affiliated with any of the Capco Parties holds any of the
Registered Shares, the Capco Parties agree, on behalf of themselves and on
behalf of all existing or future entities affiliated with any Capco Party, that
they will execute at Closing, and thereafter within five (5) business days after
the reasonable written request of Greka, written proxies to vote the Registered
Shares as directed by Greka's management, which proxies shall be in the form of
Exhibit B. The Capco Parties acknowledge that they may be required to execute
more than one proxy during the term of this voting agreement. To further
facilitate the Capco Parties' timely compliance with this voting agreement, the
Capco Parties or any entity or person affiliated with any of the Capco Parties
that holds any of the Registered Shares, hereby agree to execute and deliver at
the Closing, a Limited Power of Attorney in the form attached hereto as Exhibit
B. Such Limited Power of Attorney shall appoint the Chief Executive Officer of
Greka as attorney-in-fact to execute any and all proxies to vote the Registered
Shares. The Parties acknowledge that this voting agreement was separately
bargained for and is a material term to and forms a substantial part of the
basis for the consideration being paid by Greka under this Settlement Agreement.
The Parties further acknowledge that a failure to execute any proxy requested
hereunder, a revocation or attempted revocation of any proxy granted hereunder,
a failure to execute the Limited Power of Attorney, or a revocation or attempted
revocation of the Limited Power of Attorney would cause substantial, immediate,
and irreparable damage to Greka. The

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<PAGE>   4

Parties further acknowledge that it would be difficult in light of the
anticipated or actual harm caused by a breach of this voting agreement to
determine or prove the losses suffered by Greka and impossible for Greka to
obtain an adequate, timely remedy. Therefore, the Parties agree that in the
event of any breach of this voting agreement, Greka shall be entitled to
immediate equitable relief in the form of temporary, preliminary, and permanent
injunctive relief, which shall include an injunction requiring the Capco Parties
to execute any proxy to vote the shares as directed by Greka management. The
Parties further agree that this voting agreement shall be binding on any entity
that is affiliated with any Capco Party and that receives any of the Registered
Shares from any Capco Party or affiliated entity, as defined in Rule 405
promulgated under the Securities Act of 1933, as amended. The Parties further
agree that this voting agreement terminates as to any Registered Shares that are
transferred to any entity not affiliated with any of the Capco Parties at such
time as those shares are transferred for fair value in compliance with the
registration statement provided in paragraph 3 above, except that this voting
agreement will be revived as to any Registered Shares that are subsequently
acquired by any Capco Party or entity affiliated with any Capco Party. Under no
circumstances does this voting agreement, or any proxy executed under this
voting agreement, extend beyond Midnight EST on December 31, 2002.

         6. The Parties shall file a stipulation of dismissal, pursuant to
Federal Rule of Civil Procedure 41(a)(1)(ii), dismissing with prejudice all
claims that the Parties asserted or that they could have asserted in the Action.
The Parties shall execute the form of the stipulation of dismissal attached
hereto as Exhibit C, and any Party, after written notice to all parties, may
file the executed stipulation of dismissal after the Parties comply fully with
paragraphs 1-5, above. Upon execution of this Settlement Agreement, counsel for
the Parties shall file with the Court in the Action a joint motion that will
inform the Court of the fact of this settlement and that the Parties will file a
stipulation of dismissal, and that will request that the Court extend all
deadlines by sixty (60) days, unless otherwise agreed by the Parties in writing.
The Court shall retain jurisdiction until the Parties comply fully with
paragraphs 1-5 so either Party may enforce this Settlement Agreement.
Specifically, should any Greka Party fail to comply with any of its or his
respective obligations on or before the deadlines specified in paragraphs 1-5,
any Capco Party may seek entry of judgment pursuant to the Stipulated Judgment
attached as Exhibit D, or should any Capco Party fail to comply with its or his
respective obligations on or before the deadlines specified in paragraphs 1-5,
any Greka Party may seek entry of judgment pursuant to the Stipulated Judgment
attached as Exhibit E.

         7. Each Party shall be solely responsible for its own legal fees and
expenses in connection with the Action, including legal fees and expenses
incurred in the dismissal of the Action and the negotiation and execution of
this Settlement Agreement.

         8. Subject solely to the requirements of this Settlement Agreement, the
Greka Parties release and forever discharge the Capco Parties and their
predecessors, successors, assigns, and each of them, and each past or present,
direct or indirect, partner, subsidiary, division, or affiliated entity or
corporation, and each past or present employee, agent, representative, attorney,
accountant, officer, director, stockholder, and all persons acting by, through,
under, or in concert with them, or any of them, including, but not limited to,
all entities

                                      -4-
<PAGE>   5

or persons listed in the schedule attached to this Settlement Agreement as
Exhibit A, from any and all claims asserted in the Action or referred to in
Exhibit A, or related to any claim asserted in the Action, or referred to in
Exhibit A. Any release accruing to any entity or person who is not a Party shall
be effective only upon execution by that entity or person of a reciprocal
release that releases all entities released pursuant to Paragraph 9, below.

         9. Subject solely to the requirements of this Settlement Agreement, the
Capco Parties release and forever discharge the Greka Parties and their
predecessors, successors, assigns, and each of them, and each past or present,
direct or indirect, partner, subsidiary, division, or affiliated entity or
corporation, and each past or present employee, agent, representative, attorney,
accountant, officer, director, stockholder, and all persons acting by, through,
under, or in concert with them, or any of them, from any and all claims asserted
in the Action or referred to in Exhibit A, or related to any claim asserted in
the Action or referred to in Exhibit A. Any release accruing to any entity or
person who is not a Party shall be effective only upon execution by that entity
or person of a reciprocal release that releases all entities released pursuant
to Paragraph 8, above.

         10. The Parties acknowledge that each has had the benefit and advice of
independent legal counsel in connection with this Settlement Agreement, and each
Party understands the meaning of each term of this Settlement Agreement and the
consequences of signing this Settlement Agreement. This Settlement Agreement is
the result of negotiation between the Parties, each of whom has participated in
the drafting of this Settlement Agreement, through its respective attorneys.
Each Party has freely and voluntarily entered into this Settlement Agreement.

         11. Each Party further declares and represents that it has reviewed
this Settlement Agreement in its entirety and that in making this Settlement
Agreement each Party has relied wholly upon its own judgment, belief, knowledge,
investigation, independent legal advice, and research as to the advisability of
entering into this Settlement Agreement. Each Party, together with its
attorneys, has made such investigation of the facts and the law pertaining to
the Action and this Settlement Agreement, and of all the matters pertaining
thereto, as it deems necessary. Each Party forever waives all rights to assert
that this Settlement Agreement resulted from a mistake in law or in fact. Each
Party also declares and represents that it has not been influenced to any extent
whatsoever in entering into this Settlement Agreement by any representations or
statements regarding the same by any other Party, or by anyone representing or
acting for any other Party.

         12. This instrument, including the exhibits, contains the entire
agreement between the Parties to this Settlement Agreement. With the sole
exception of the Protective Order entered in the Action, all previous
understandings, agreements, and communications prior to the Effective Date,
whether express or implied, oral or written, relating to the subject matter of
this Settlement Agreement are fully and completely extinguished and superseded
by this Settlement Agreement. Within sixty (60) days of dismissal of the Action,
the Parties and their counsel shall destroy any copies of documents produced in
the Action and designated as "Confidential."

                                      -5-
<PAGE>   6

         13. This Settlement Agreement shall not be altered, amended, modified,
or otherwise changed except by a writing duly signed by all the Parties.

         14. Each Party covenants and represents that it has not assigned to any
other persons or entities any of its claims herein settled and released and that
it is fully entitled to enter into this Settlement Agreement. Each Party shall
indemnify, defend, and hold harmless the other Party from and against any Claims
based upon or arising in connection with any such prior assignment, transfer,
lien, or right.

         15. All notices and demands given under the terms of this Settlement
Agreement shall be in writing and may be effected by personal delivery,
including by any commercial courier or overnight delivery service, or by United
States registered or certified mail, return receipt requested, with all postage
and fees fully prepaid. Notices shall be effective upon receipt by the Party
being given notice, as indicated by the return receipt if mailed, except that if
a Party has relocated without providing the other party with its new address for
service of notices, or if a Party refuses delivery of a notice upon its tender,
the notice shall be effective upon the attempt to serve the notice at the last
address given for service of a notice upon that Party. Alternatively, notices
may be served by facsimile transmission, in which case service shall be deemed
effective only upon receipt by the Party serving the notice of telephonic or
return facsimile transmission confirmation that the Party to whom the notice is
directed has received a complete and legible copy of the notice. Notices shall
be addressed as follows:

         If to Greka and/or Mr. Grewal:

                  Greka Energy Corporation
                  630 Fifth Avenue, Suite 1501
                  New York, New York  10111
                  Tel. No.:  (212) 218-4680
                  Fax No.:   (212) 218-4679
                  Attention: Randeep S. Grewal

         With a copy to:

                  Ballard Spahr Andrews & Ingersoll, LLP
                  1225 17th Street, Suite 2300
                  Denver, Colorado  80202-5596
                  Tel. No.:  (303) 292-3400
                  Fax No.:   (303) 296-3956
                  Attention: Roger V. Davidson

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<PAGE>   7

         If to Capco Energy, Inc., Capco Resources, Ltd. and/or Ilyas Chaudhary:

                  Capco Energy, Inc.
                  2922 East Chapman Avenue, Suite 202
                  Orange, California  92869
                  Tel. No.:  (714) 288-8230
                  Fax No.:   (714) 288-8240
                  Attention: Ilyas Chaudhary

                  Capco Resources, Ltd.
                  2922 East Chapman Avenue, Suite 202
                  Orange, California  92869
                  Tel. No.:  (714) 288-8230
                  Fax No.:   (714) 288-8240
                  Attention: Dennis Staal

         With a copy to:

                  White & Case LLP
                  633 West Fifth Street, Suite 1900
                  Los Angeles, California 90071-2007
                  Tel. No.:  (213) 620-7700
                  Fax No.:   (213) 687-0758
                  Attn:  Bryan A. Merryman

The address(es) for service of notice on any Party may be changed by that Party
serving a notice upon the others of the new address, except that any change of
address to a post office box shall not be effective unless a street address is
also specified for use in effectuating personal service.

         16. Time is strictly of the essence in this Settlement Agreement. All
dates, deadlines, and time periods set forth herein have been specifically
negotiated between the Parties and shall be strictly adhered to without any
extension for any length of time whatsoever.

         17. Each Party covenants and represents that he or it is fully
authorized to enter into this Settlement Agreement and to carry out the
obligations provided for in this Settlement Agreement. Where a person has
executed this Settlement Agreement on behalf of a Party, that person covenants,
warrants, and represents that he is or has been authorized to do so by that
Party.

         18. The consummation of the transactions contemplated by this Agreement
will not result in or constitute any of the following: (i) a breach of any term
or provision of any agreement to which any Party is a party, including but not
limited to the Party's credit agreements; (ii) a default or an event that, with
notice of lapse of time or both, would be a default, breach, or violation of the
Articles Of Incorporation or Bylaws of any Party or of any lease, license,
promissory note, conditional sales contract, commitment, indenture, mortgage,
deed of trust, or other agreement, instrument, or arrangement to which any Party
is a party or by

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<PAGE>   8

which any Party is bound; or (iii) a violation of any law or any rule or
regulation of any administrative agency or governmental body, of any order,
writ, injunction or decree of any court, administrative agency or governmental
body to which any Party may be subject.

         19. This Settlement Agreement shall be governed by Colorado law,
without regard to principles of conflicts of laws. Any action for breach of this
Settlement Agreement shall be brought in the State of Colorado. The prevailing
party in any action for a breach of this Settlement Agreement, or to enforce a
judgment obtained as a result of a breach of this Settlement Agreement, shall be
entitled to recover its reasonable attorney fees and costs. As used in this
paragraph, attorney fees shall be deemed to mean the full and actual cost of any
legal services performed in connection with the matters involved, calculated on
the basis of the usual fees charged by the attorneys performing such services
and shall not be limited to "reasonable attorney fees" as defined in any
statute, rule of court, or case law.

         20. In the event that any provision of this Settlement Agreement should
be held to be void, voidable, or unenforceable, the remaining portions hereof
shall remain in full force and effect.

         21. This Settlement Agreement shall be binding upon and inure to the
benefit of the Parties' successors, assigns, executors, personal
representatives, heirs, and devisees.

         22. This Settlement Agreement may be executed in counterparts and by
facsimile. Each counterpart shall constitute an original.

         23. This Settlement Agreement shall be effective immediately upon all
Parties' execution of the counterparts.

                                                GREKA ENERGY CORP.

         Date: August 18, 2000                  By: /s/ Randeep S. Grewal
                                                   -----------------------------
                                                    Randeep S. Grewal
                                                    Chief Executive Officer and
                                                    Chairman

                                                RANDEEP S. GREWAL

         Date: August 18, 2000                  By: /s/ Randeep S. Grewal
                                                   -----------------------------
                                                    Randeep S. Grewal

                                                CAPCO RESOURCES, LTD.

         Date: August 18, 2000                  By: /s/ Dennis Staal
                                                   -----------------------------
                                                    Dennis Staal
                                                    President

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<PAGE>   9

                                                CAPCO ENERGY, INC.

         Date: August 18, 2000                  By: /s/ Ilyas Chaudhary
                                                   -----------------------------
                                                    lyas Chaudhary
                                                    President

                                      -9-
<PAGE>   10

                                                ILYAS CHAUDHARY

         Date: August 18, 2000                  By: /s/ Ilyas Chaudhary
                                                   -----------------------------
                                                    Ilyas Chaudhary

                                      -10-ALLIANCE AGREEMENT

This is an Alliance Agreement  ("Agreement"),  effective September 20, 2000 (the
"Effective  Date")  by  and  between  Lucent  Technologies  Inc.  ("Lucent"),  a
corporation  organized  and  existing  under the laws of the State of  Delaware,
United  States of  America  ("US"),  and having an office at 67  Whippany  Road,
Whippany,  NJ, 07981, US, and Net2Wireless  Corporation  ("N2W"),  a corporation
organized and existing under the laws of the State of Delaware, US and having an
office at 10 Haamal Street,  Park Afek, Rosh Haayin 48092,  Israel.  Each of the
foregoing entities shall be deemed a "Party" and collectively, the "Parties".

                                    RECITALS

         Whereas,   Lucent  is  in  the  business  of   designing,   developing,
manufacturing, selling, installing, and licensing wireless network equipment and
software  for the  operation of wireless  communications  systems on a worldwide
basis; and

         Whereas,   N2W   is  in  the   business   of   designing,   developing,
manufacturing,  selling,  installing, and licensing wireless switching equipment
and software for the  operation of wireless data  applications  and of providing
data applications for value added services; and

         Whereas,  N2W's  Products  (as  defined  below) may be useful to Lucent
customers who have purchased or may purchase Lucent's wireless network equipment
or software; and

         Whereas,  Lucent  desires to have an  arrangement  with N2W pursuant to
which  Lucent may refer  existing  and  potential  Lucent  customers  to N2W and
facilitate N2W's sales of such services to said customers, and N2W is willing to
enter into such an arrangement;

         NOW,  THEREFORE,  in consideration of the promises and mutual covenants
contained herein and for other good and valuable considerations, the receipt and
sufficiency of which are hereby mutually acknowledged,  the parties hereto agree
as follows:

                                    AGREEMENT

1.0      HEADINGS AND DEFINITIONS

         1.1 All headings used in this  Agreement  are inserted for  convenience
only and are not  intended  to affect  the  meaning  or  interpretation  of this
Agreement  or any Article or section.  For the  purpose of this  Agreement,  the
following definitions will apply:

         (a)      "Advertising"  means all advertising,  sales promotion,  press
                  releases,   and  other  publicity  matters  relating  to  this
                  Agreement or any performance under this Agreement;

         (b)      "Affiliate"  of a  corporation  means  its  Subsidiaries,  any
                  company of which it is a Subsidiary, and other Subsidiaries of
                  such company;

         (c)      "Collateral Material" means data sheets,  applications briefs,
                  presentation  brochures and other  advertising  or promotional
                  materials that are not

<PAGE>

                  designated as  confidential  by N2W and are distributed in the
                  normal  course  of  business  to assist  in the  marketing  of
                  Products;

         (d)      "Documentation" means all technical, repair, marketing and end
                  user  documentation  that is designated as confidential by N2W
                  and  usually  made  available  by  N2W  to  its  customers  or
                  potential customers, subject to Non-Disclosure obligations, in
                  a form substantially  similar to the Non-Disclosure  Agreement
                  executed between the Parties, having an effective date of June
                  15,  2000,   to  inform  or  instruct  its  customers  in  the
                  description,  features and function,  installation,  operation
                  and maintenance of Products;

         (e)      "Exhibits"   means   the   documents   attached   hereto   and
                  incorporated  by this  reference,  as they may be amended from
                  time to time by written  agreement  of the  Parties.  Exhibits
                  include, without limitation, the following:

                  Exhibit A  -  Product Description and List Price Information
                  Exhibit B  -  Restricted N2W Account(s) and Registered
                                Lucent Account(s) Matrix
                  Exhibit C  -  Sales Referral Procedure
                  Exhibit D  -  Commission Percentage

         (f)      "Force  Majeure"  means  fires,  strikes,   riots,  embargoes,
                  explosions,  earthquakes, floods, wars, threat of war, warlike
                  conditions,   hostilities,  sanctions,  blockade,  water,  the
                  elements, labor disputes,  government  requirements,  civil or
                  military  authorities,  acts  of God or by the  public  enemy,
                  inability   to  secure   raw   materials   or   transportation
                  facilities,  acts or  omissions of carriers or  suppliers,  or
                  other causes beyond a Party's  control  whether or not similar
                  to the foregoing which shall have a material adverse effect on
                  the performance of the obligations of the respected Party;

         (g)      "Information"  means  any  specifications,   designs,   plans,
                  drawings,   software,   data,   prototypes,   business  and/or
                  technical information in whatever form recorded or unrecorded.

         (h)      "Lucent  Customer(s)" means  individually or collectively,  as
                  applicable,  all carriers, service providers, and operators of
                  Wireless Network Equipment: (i) to whom Lucent has sold Lucent
                  Wireless  Network  Equipment and to which customers  desire to
                  add  N2W's  Products,  (ii) who  have  issued  a  tender,  bid
                  request,  or  proposal  request or similar  request for vendor
                  response to Lucent and not to N2W, and  Lucent's  response may
                  include  Products  or (iii) to whom  Lucent may be  submitting
                  unsolicited  proposals for Lucent Wireless  Network  Equipment
                  and/or Products;

         (i)      "Lucent Customer  Service Area" means a geographical  area, as
                  defined by a Lucent Customer, in which the Lucent Customer has
                  been authorized to operate Wireless Network Equipment,  and in
                  which the Lucent  Customer is using  Lucent  Wireless  Network
                  Equipment.  At any specific time a Lucent Customer may operate
                  in more than one such area, not all of which are equipped with
                  Lucent Wireless Network Equipment;

<PAGE>

         (j)      "Lucent's  Wireless  Innovations  Lab(SM)"  means those Lucent
                  testing   facilities   which  are   designed   test   wireless
                  technologies with Lucent Wireless Network Equipment.

         (k)      "Products"   means,   collectively,   N2W's   3GateTM   system
                  identified in Exhibit A, as it may exist from time to time;

         (l)      "Registered Lucent Account(s)" means those Lucent Customers or
                  Lucent Customer  Service Areas which have been referred to and
                  accepted  by  N2W  as  provided  in  Article  3.0,   SCOPE  OF
                  AGREEMENT/IDENTIFICATION  OF ACCOUNTS,  of this  Agreement.  A
                  Registered  Lucent Account(s) List will be created and updated
                  by  Lucent  and N2W  during  the term of this  Agreement.  The
                  initial list of Registered Lucent  Account(s),  if any, is set
                  forth on Exhibit C.  Additions and  deletions  will be made to
                  the  Registered  Lucent  Account(s)  List from time to time in
                  writing by mutual  agreement  of Lucent and N2W,  to  maintain
                  currency of such list;

         (m)      "Restricted  N2W Account(s)"  means those Lucent  Customers or
                  Lucent  Customer  Service Areas for which N2W can  demonstrate
                  that such Lucent Customer or Lucent Customer  Service Area has
                  previously   purchased   Products,   or  with   whom  N2W  can
                  demonstrate  that  it  is   independently   pursuing  a  sales
                  opportunity directly. A Restricted N2W Account(s) List will be
                  maintained   by  Lucent  and  N2W  during  the  term  of  this
                  Agreement.  The initial list of Restricted N2W Account(s),  if
                  any, is set forth on Exhibit B.  Additions and deletions  will
                  be made to the Restricted N2W Account(s)  from time to time in
                  writing by mutual  agreement  of Lucent and N2W,  to  maintain
                  currency of such list;

         (n)      "Subsidiary"  of a company means a corporation the majority of
                  whose shares or other securities entitled to vote for election
                  of directors is now or hereafter  owned or  controlled by such
                  Party either directly or indirectly;  but any such corporation
                  shall be deemed to be a Subsidiary  of such Party only as long
                  as such ownership or control exists; and

         (o)      "Wireless Network  Equipment" means equipment and/or software,
                  typically   involving,   but  not  necessarily  so,  switching
                  equipment and cell site radio equipment,  used by providers of
                  telecommunications  services, as authorized by the responsible
                  governmental  agency,  to furnish to the public those wireless
                  services generally described as cellular services and personal
                  communications  services  (but not fixed  wireless or wireless
                  access services) utilizing any one or more of the technologies
                  currently known as analog, Code Division Multiple Access, Time
                  Division  Multiple  Access,  Cellular  Digital Packet Data and
                  other technologies as they may, from time to time, be utilized
                  to provide  such  services to the public,  and  including  the
                  technologies known as Global Systems Mobile Communications and
                  Universal Mobile Telecommunications System.

2.0       TERM OF AGREEMENT

<PAGE>

2.1 This Agreement  shall be effective on the date written above and,  except as
otherwise provided herein, shall continue in effect for a term of forty-two (42)
months or until (a)  earlier  terminated  pursuant to the terms  hereof,  or (b)
extended or superseded by a written  amendment to this Agreement or a subsequent
written agreement mutually agreed upon by the Parties.  Notwithstanding any such
expiration or  termination,  Lucent shall be entitled to commissions to the full
extent  set forth  herein  with  respect  to  transfers  of  Products  by N2W to
Registered  Lucent  Accounts  referred by Lucent and accepted by N2W pursuant to
the terms of this Agreement  prior to the  effectiveness  of such  expiration or
termination.

3.0      SCOPE OF AGREEMENT/IDENTIFICATION OF ACCOUNTS

3.1 This  Agreement is not  intended to  establish  an  exclusive  relationship.
Nothing in this Agreement shall be construed as limiting,  in any manner,  N2W's
marketing  or  distribution  activities  or its  appointment  of other  dealers,
distributors,  licensees or agents, provided that in engaging in such activities
or appointments, N2W and its other dealers, distributors, licensees or agents do
not violate N2W's obligations to Lucent as set out in this Agreement. Nothing in
this Agreement shall be construed as limiting,  in any manner,  Lucent's pursuit
of,  negotiation with, and  establishment of sales referral  agreements or other
arrangements  with other  companies,  or to market its own  products or those of
other  third  parties to Lucent  Customers  even  though  such  products  may be
comparable to Products.  N2W acknowledges that nothing herein shall be deemed to
bar Lucent from proposing to the same Lucent Customer,  at the same time that it
is referring  Products,  the products of one or more other suppliers,  including
Lucent.  N2W  further  acknowledges  that Lucent  markets  through its own sales
personnel  and  through  its  Affiliates  and that the  right of Lucent to refer
Lucent Customers to N2W, and to receive sales referral commissions in respect of
transfers of Products to Registered Lucent Accounts,  as set out in Article 6.0,
COMMISSION,  shall apply to Lucent and such Affiliates. As used herein, the term
Lucent shall include such Affiliates unless the context otherwise requires.

3.2 Lucent has the right to market its Wireless Network Equipment worldwide.  In
the course of such  marketing,  Lucent may  identify  Lucent  Customers as sales
opportunities  for  Products.  When  Lucent  sales  teams have done so, they are
authorized to provide Lucent Customers with a high level product  description of
and Collateral  Material for such Products.  Either prior to or after  providing
such  description,  Lucent may refer  Lucent  Customers  to N2W as  specified in
Exhibit C. Each Lucent Customer  referred to N2W and accepted by N2W pursuant to
such  procedure  shall,  to the extent of such  acceptance,  become a Registered
Lucent Account.

         In the case  where the  Lucent  Customer  requests  a single  vendor of
products  which are  comparable  to N2W's  Products in its request for  proposal
and/or  Lucent  determines  that N2W  provides the best  opportunity  for Lucent
Customer  satisfaction  and such Lucent  Customer is referred to and accepted by
N2W as a Registered  Lucent  Account,  Lucent  agrees that it will not seek bids
from other vendors of products  which are  competitive  with N2W's  Products for
that Registered  Lucent Account until such time as the Registered Lucent Account
rejects the N2W proposal.

<PAGE>

3.3  Notwithstanding the provisions above, N2W shall have the sole discretion to
either  accept or reject each referral of a Lucent  Customer or Lucent  Customer
Service Area within seven (7) business  days. In the event N2W rejects a certain
referral of a Lucent  Customer,  N2W will state whether the reason for rejection
of a Lucent Customer referral is:

         (a)      the  Lucent  Customer  or Lucent  Customer  Service  Area is a
                  Restricted N2W Account; or,

         (b)      any other reason.

         In the event N2W  rejects a Lucent  Customer  referral  for  reason (a)
above,  N2W  will be able to  pursue  that  account  directly  without  Lucent's
approval.  In the event N2W rejects a Lucent  Customer  referral  for any reason
other  than (a)  above,  N2W  agrees it will not  pursue  that  Lucent  Customer
directly for a period of one (1) year after its rejection. In the event that N2W
does not respond to Lucent within seven(7) business days to accept or reject the
Lucent  Customer  referral,  for purposes hereof it will be assumed that N2W has
accepted  the  referral  and the  referred  Lucent  Customer or Lucent  Customer
Service Area shall be deemed a Registered Lucent Account.

3.4 When  requested  by Lucent,  and as mutually  agreed,  N2W  personnel  shall
accompany Lucent's personnel on visits to Registered Lucent Accounts and provide
necessary  materials to be used in N2W's sales and  technical  presentations  to
such  customers,  and otherwise  take  affirmative  steps intended to cause such
customers to purchase Products.

3.5 In the event that the parties shall mutually agree that a Registered  Lucent
Account  should no longer be considered  such,  effective  with the date of such
agreement, the Lucent Customer or Lucent Customer Service Area involved shall no
longer be deemed a  Registered  Lucent  Account  and N2W will then,  at its sole
discretion,  be  able  to  pursue  that  account  directly  or  through  another
distribution  channel  without  owing any  commission  or other such payments to
Lucent,  provided,  however, that nothing herein shall be deemed to excuse N2W's
obligation  under  Article  6.0,  COMMISSION  to pay  commissions  in respect of
Products or additional  growth,  upgrades and new features  furnished by N2W for
Products  transferred  to the Lucent  Customer or Lucent  Customer  Service Area
pursuant to  arrangements  entered into prior to the time the Lucent Customer or
Lucent Customer Service Area ceases to be a Registered Lucent Account.

4.0      RELATIONSHIP OF THE PARTIES

4.1 The  relationship  of the Parties under this  Agreement  shall be and at all
times remain one of a referral  sales  arrangement  for the purpose of providing
Lucent  Customers,  at  their  discretion,  with an  integrated  technology  and
application  solution.  Each Party shall employ its own  personnel  and shall be
solely  responsible  for  their  acts  and be  responsible  for  payment  of all
unemployment,  Social Security, and other payroll taxes, including contributions
required by law.

4.2 No director,  officer, employee,  consultant or agent of either Party hereto
or their  respective  Affiliates  shall at any time be deemed to be a  director,
officer,  employee,  consultant  or agent of the  other  Party  for any  purpose
whatsoever, and the Parties shall use commercially reasonable efforts to prevent
any such misrepresentation.  Nothing in this Agreement shall be deemed to create
any joint venture,  partnership, or principal-agent

<PAGE>

relationship  between N2W and Lucent, and neither Party shall hold itself out in
its   advertising  or  in  any  other  manner  which  would  indicate  any  such
relationship with the other. N2W shall at all times be considered an independent
contractor for the purposes of providing Products to Lucent's Customers.

5.0      LUCENT'S RESPONSIBILITIES

5.1 Lucent shall be responsible for sales support to N2W by providing  access to
Registered  Lucent  Account teams for training and will  coordinate  and arrange
training   sessions;   for  providing   Lucent   Customer  lead  generation  and
introduction  to Registered  Lucent  Account;  and, when  mutually  agreed,  for
providing consultation on bids and proposals. Lucent will provide a Relationship
Manager  and  Lucent  representative(s)  will  participate  in joint  visits  to
Registered Lucent Accounts, as and when mutually agreed.

6.0      COMMISSION

6.1 N2W  shall pay  Lucent a  commission  (the  "Commission")  on all  transfers
(including,  but not limited to, sales,  leases,  and licenses) of Products (and
related services) to a Registered Lucent Account. The "Commission Percentage" is
defined in Exhibit D to this Agreement.

6.2 The  Commission  Percentage  shall be applied to the Net Invoice  Amount for
Product(s),   including  any  additional  growth,  upgrades,  new  features,  or
additional systems,  and including all related engineering,  installation,  post
warranty support,  enhanced warranty support, and any other associated services,
but not including any sales or use taxes, import duties, transportation, freight
or shipping  charges,  ordered by the Registered  Lucent Account,  for three (3)
years from the date of the last  contract  executed  by N2W with the  Registered
Lucent  Account or purchase  order  issued by such  customer and accepted by N2W
during the term of this  Agreement.  For the purpose of this  Article,  the term
"Net Invoice  Amount" means the net amount billed by N2W,  after  accounting for
any  applicable   normal  discounts  and  returns  (but  not  credits  or  other
adjustments  for N2W  delays or other  faults,  including  liquidated  or agreed
damages).

6.3 Such  Commission  shall be paid  within  thirty  (30) days after  receipt of
payment by N2W from the Registered Lucent Account.

6.4  Notwithstanding  the  foregoing,  with  respect  to a resale  described  in
Paragraph 7.6, the "Net Invoice  Amount" shall refer to the amount billed by N2W
to Lucent, not the amount billed by Lucent to the Lucent Customer to whom Lucent
resells Products. Further, as a matter of clarification,  Commissions on resales
shall be paid to Lucent within thirty (30) days after receipt by N2W of payments
for Products from Lucent.

7.0      PROPOSALS, CONTRACTS AND ORDERS

7.1 N2W will provide to Lucent,  at least five (5)  business  days prior to such
presentation,  a copy of each sales proposal to be made by N2W to any Registered
Lucent  Account.  N2W will consider in good faith to incorporate in its proposal
any changes reasonably  requested by Lucent. N2W will present the sales proposal
directly to the Registered Lucent Account.

<PAGE>

7.2 When a Lucent Customer issues tenders, bid requests, or proposal requests to
Lucent and Lucent  desires N2W to assist in a response that  includes  Products,
N2W will,  if it has  accepted  or then  accepts  the Lucent  Customer or Lucent
Customer  Service  Area as a  Registered  Lucent  Account,  provide  appropriate
personnel and support to work cooperatively with Lucent in providing  proposals.
Lucent   personnel  will  take  the  leadership  role  in  the  preparation  and
coordination  of the  response and will be  responsible  for that portion of the
proposal,  if any, involving Lucent Wireless Network Equipment.  N2W will assume
responsibility  for  preparation  of  that  portion  of the  response  involving
Products.

7.3 N2W will contract  directly with Registered  Lucent Accounts for the sale of
Products,  including invoicing and collections,  warranty support, post warranty
support,  complete  technical  support,  engineering and installation  services,
growth on initial sales, product upgrades, etc., all subject to N2W's applicable
charges or price  quotation.  For use by Lucent in determining  whether to refer
Products  to a Lucent  Customer,  N2W shall keep  Lucent  informed of N2W's list
prices for Products, as they may exist from time to time during the term of this
Agreement.  All orders for  Products  and related  services  shall be  submitted
directly to N2W by Registered Lucent Accounts.

7.4  Lucent  shall not have any  liability  or  obligation  with  regard to such
contracts entered into by N2W or orders submitted by Lucent Customers and Lucent
Customer Service Areas to N2W pursuant to such contracts or otherwise.

7.5 N2W acknowledges that Lucent Customers and Lucent Customer Service Areas may
from  time to time pose to  Lucent  problems  or other  matters  that  relate to
Products  furnished  to them by N2W.  Unless  the  Parties  otherwise  agree  in
writing, which such writing shall address the compensation to which Lucent shall
be entitled for any additional  services that the Parties agree that Lucent will
perform, all such problems and other matters shall be referred by Lucent to N2W.
Promptly upon execution of this Agreement, and as necessary through out the term
of this Agreement,  N2W will provide Lucent with the current telephone number or
other manner of  communicating  with N2W for referral of such problems and other
matters  to N2W,  on a  twenty-four  (24) hour per day,  seven (7) day per week,
basis.  Upon  referral  of a problem by Lucent,  N2W shall  promptly  confirm in
writing an  acknowledgment of its receipt thereof and promptly work to solve the
problem.  Upon resolution of any referred  problem,  N2W shall furnish notice to
Lucent in writing a  description  of the actions  taken to clear the problem and
the date the problem was cleared.

7.6  Notwithstanding  the foregoing,  the parties  acknowledge that from time to
time,  a  Registered  Lucent  Account may  require  that Lucent act as the prime
contractor  in the  provision of Products (the  "project"),  in which case,  the
Products will be passed  through  Lucent to the account (a "resale").  Any prime
contractor  -  subcontractor  arrangement  shall be the  subject  of a  separate
written agreement between Lucent and N2W. Unless otherwise  requested by Lucent,
such agreement shall be negotiated with the Lucent Customer Team responsible for
the  project,  and  shall  include  terms  and  conditions  typical  to  such an
arrangement,  including,  but not limited to,  terms  related to  invoicing  and
payment,  engineering and installation services, warranty support, post warranty
support, growth on initial sales, and product upgrades,  provided, however, that
these terms shall be no less  favorable to N2W than those offered by N2W under a
direct  sale to a  Registered  Lucent

<PAGE>

Account. Lucent shall be entitled to Commission in such circumstances, as if the
transaction between Lucent and its account had been between N2W and a Registered
Lucent Account.

8.0      AUDIT

8.1 N2W shall maintain  accurate and complete records of all  transactions  with
Registered Lucent Accounts for which payment of a sales referral  commission may
be owed to Lucent under this  Agreement.  Such records  shall be  maintained  in
accordance  with  recognized  commercial  accounting  practices  so they  may be
readily  audited  and  shall be held  until at  least  the  later of (i) one (1)
calendar year after the sales referral  commission(s)  for all such transactions
have  been  finally  determined  under  this  Agreement  and  payment  or  final
adjustment of payment, as the case may be, has been made by N2W, or (ii) one (1)
calendar  year  after  the  termination,  cancellation  or  expiration  of  this
Agreement. N2W shall permit Lucent to examine and audit these records once every
calendar  quarter during  business hours and provided Lucent has coordinated the
date of such audit at least  twenty one (21) days in  advance.  N2W shall not be
required to allow any such audits after the end of the record  retention  period
set out above.

8.2 N2W shall provide a statement on a quarterly basis of all transactions  with
Registered  Lucent Accounts and all Net Invoice Amounts (as described in Article
6.0,  COMMISSION)  applicable  thereto,  the date(s) of invoices reflecting such
amounts, the amount(s) of payment(s) received from Registered Lucent Accounts in
respect of such invoices, and the date(s) of such receipt by N2W. This statement
shall be sent to the Lucent contact specified in Article 22, NOTICES.

8.3 In the event that Lucent exercises its right to audit and Lucent  reasonably
determines that N2W owes commissions pursuant to Article 6.0,  COMMISSION,  that
were not paid,  N2W will  immediately  pay to  Lucent  those  amounts  not paid,
provided,  however,  that in the event that N2W disputes such finding the matter
will be resolved pursuant to Article 15.0 DISPUTE RESOLUTION.

9.0      INTEROPERABILITY TESTING

9.1 Prior to any sales referral activity between Lucent and N2W for any Product,
such Product must have completed successful interoperability testing at Lucent's
Wireless  Innovation  LabSM  testing  facility and satisfy all  requirements  of
interoperability.  N2W  representatives  will attend and  accompany the testing.
Except as the Parties may  otherwise  agree in writing,  such  testing  shall be
performed  pursuant  to a separate  written  agreement  setting  forth  Lucent's
standard terms and  conditions and charges for such testing,  as they exist from
time to time. When a Product previously  successfully  tested is modified and/or
changed  in any way that might  render  the  previous  test  results  invalid or
uncertain,  N2W must inform Lucent and such Product must repeat interoperability
testing to validate  that the  modifications  and/or  changes do not  compromise
interoperability  status.

9.2 If Lucent Wireless Network Equipment  undergoes  modification and/or change,
Lucent will notify  N2W.  Each  impacted  Product  must repeat  interoperability
testing,  if Lucent  determines  that the  modifications  and/or  changes  could
compromise interoperability status of such Product.

<PAGE>

10.0     TRAINING

10.1 N2W will, at Lucent's  request and without charge,  provide training in the
features, target markets, selling strategies,  and technical aspects of Products
for Lucent's  personnel  such that said  personnel  will be able to  effectively
identify sales  opportunities  for Products.  The Parties will mutually agree on
the  level  of  training  required.   Training  courses  may  be  delivered  via
teleconference training,  computer based training,  video, video teleconference,
or seminar at a mutually agreeable location.  The Parties will mutually agree on
the delivery method and the training materials required.

10.2 N2W shall  provide each Lucent  attendee,  at no charge,  a complete set of
available training materials,  handouts and associated  materials  pertaining to
Products.  Lucent  personnel  shall  not copy or  distribute  any such  training
materials without the prior written permission of N2W.

11.0     COORDINATION OF INSTALLATION AND ACCEPTANCE

11.1 The Parties will integrate,  whenever possible, their installation plans to
satisfy  requirements  of Registered  Lucent Accounts to whom they have marketed
their  respective  products or Products.  The Parties will also make  reasonable
efforts  to  cooperate  in  preparing  acceptance  criteria  and plans that will
satisfy  those  customers'  interest in ensuring  that Lucent  Wireless  Network
Equipment and Products work together as an integrated system.

12.0     FEDERAL COMMUNICATIONS COMMISSION (FCC) REGISTRATION

12.1 When a Product  furnished by N2W to Lucent  Customers is subject to Part 2,
Part 15, Part 22, Part 68, or any other part of the FCC's Rules and Regulations,
as amended  from time to time,  N2W, to the best of its  knowledge,  warrants to
Lucent and will warrant to Lucent  Customers and Lucent  Customer  Service Areas
that  such  Product  complies  with  the   registration,   certification,   type
acceptance,  and/or  verification  standards of the FCC's Rules and Regulations,
including   but  not  limited  to,  all  labeling   and   customer   instruction
requirements,  and the suppression of radiation to specified  levels.  N2W shall
establish periodic on-going  compliance  re-testing and follow a quality control
program  to assure  that  Products  furnished  to Lucent  Customers  and  Lucent
Customer   Service  Areas  will  comply  with  the   applicable  FCC  Rules  and
Regulations.  Lucent shall be under no  obligation  to offer N2W Products  which
will not comply with the applicable FCC Rules and Regulations.

12.2 In  addition,  should any  Product,  which is subject to Part 15 of the FCC
Rules  and  Regulations,  during  use  generate  harmful  interference  to radio
communications,  N2W shall provide Lucent and the impacted Lucent  Customers and
Lucent  Customer  Service  Areas  with   information   relating  to  methods  of
suppressing such interference.

13.0     SAFETY CERTIFICATION

13.1 N2W, to the best of its  knowledge,  warrants to Lucent and will warrant to
Lucent  Customers and Lucent Customer  Service Areas that Products  furnished to
them will comply with the applicable  Underwriters  Laboratories (UL),  Canadian
Standards Association (CSA), and other international  standards and regulations.
Upon request of Lucent from time to time during the term of this Agreement,  and
at no charge to Lucent, N2W will provide Lucent a

<PAGE>

certification  in writing by an authorized  officer of N2W, that each Product is
in compliance with such standards and  regulations as are applicable.  N2W shall
be responsible for bringing Products into compliance and maintaining  compliance
with said UL, CSA, and international standards and regulations. Lucent shall not
be under any  obligation  to offer N2W Products  which will not comply with such
applicable UL, CSA and international standards and regulations.

14.0     APPLICABLE LAW/UNIFORM LAWS NOT APPLICABLE

14.1 The construction and  interpretation  of, and the rights and obligations of
the Parties pursuant to this Agreement shall be governed by the laws (other than
its conflict of law rules) of the State of New York, United States.  The uniform
laws drawn up  pursuant  to the  Diplomatic  Conference  on  Unification  of Law
governing  the  International  Sale of Goods  held at the Hague in 1964 (and any
successor  thereto),  whether or not adopted  anywhere,  shall not apply to this
Agreement or any order issued hereunder.  The stipulations concerning the United
Nations  Convention  on Contracts  for the  International  Sale of Goods held at
Vienna in 1980 shall not apply to this Agreement.

15.0     DISPUTE RESOLUTION

15.1 The Parties agree to attempt in good faith to resolve any dispute regarding
any right,  obligation,  duty or liability arising out of the provisions of this
Agreement, including its breach.

15.2 If a  dispute  is not  resolved  by such  attempt,  such  dispute  shall be
resolved by arbitration in the English  language  before a single  arbitrator in
New York City,  New York,  United  States,  pursuant to this clause and the then
current American Arbitration  Association ("AAA") rules. The arbitrator shall be
knowledgeable in commercial  business  transactions and wireless  technology and
acceptable to both parties.  The arbitrator's  decision and award shall be final
and binding and may be entered in any court  having  jurisdiction  thereof.  The
arbitrator shall not have the power to award punitive or exemplary damages. Each
Party  shall  bear its own  attorney's  fees  associated  with  any  arbitration
instituted  hereunder  and  other  costs  shall  be  borne  as  provided  by the
applicable AAA rules. The arbitrator,  Parties,  their representatives and other
participants  shall  hold  the  existence,   content  and  result  or  award  in
confidence.

15.3 The  procedures  specified in this clause  shall be the sole and  exclusive
procedures  for the  resolution  of disputes  arising out of or relating to this
Agreement  provided,   however,  nothing  herein  shall  be  deemed  to  require
arbitration of matters not arbitrable  under applicable law, or prohibit a Party
from seeking a preliminary injunction or other preliminary judicial relief if in
such Party's  reasonable  judgment such action is necessary to avoid irreparable
damage.  Despite any such action,  the parties will continue to  participate  in
good faith in the  procedures  specified  herein.  All  applicable  statutes  of
limitation  shall be tolled while the procedures  specified  herein are pending,
and nothing  herein  shall be deemed to bar any Party from taking such action as
may be required to effectuate such tolling.

16.0     ASSIGNMENT AND SUBCONTRACTING

<PAGE>

16.1 Neither  Party shall assign any right or interest  under this  Agreement or
delegate  or  subcontract  any  obligation  to be  performed  or owed under this
Agreement  without the prior written  consent of the other Party,  which consent
shall  not be  unreasonably  withheld,  delayed,  or  qualified.  Any  attempted
assignment,   delegation  or   subcontracting  in  contravention  of  the  above
provisions  shall be void and  ineffective.  In the  event  that a  majority  or
greater of the issued and  outstanding  stock of either Party changes control in
one or a series of related  transactions,  such event  shall not  constitute  an
assignment.

16.2 Either Party may assign this Agreement to an Affiliate  without the consent
of the other Party,  provided  that 1) the  assignment is not to a competitor of
either  Party,  and 2) the  assigning  Party  shall  remain  liable for and will
guarantee  its assign's  performance,  including  payment of monies,  under this
Agreement.  Lucent,  without  N2W's  consent,  may  assign  its right to receive
payments  hereunder.  Each  Party  shall  promptly  notify the other  Party,  in
writing, of any such permitted assignment.

16.3 Nothing  herein shall preclude a Party from  employing a  subcontractor  in
carrying  out its  obligations  under  this  Agreement.  A  Party's  use of such
subcontractor  shall not  release  the Party  from its  obligations  under  this
Agreement.

17.0     COLLATERAL MATERIAL

17.1 Within ten (10) business days of the full execution of this Agreement,  N2W
will, without charge to Lucent, furnish to the Lucent Alliance Manager listed in
Exhibit C,  Collateral  Material about Products which N2W makes available to its
own  customers  or its own  sales  force in  sufficient  number,  for  Lucent to
commence its activities under this Agreement.  From time to time during the term
of  this  Agreement,  upon  reasonable  request  of  Lucent,  N2W  will  provide
additional copies of then current Collateral Material.  N2W will promptly inform
Lucent of any changes to the Collateral Material. Lucent shall have the right to
make reasonable numbers of copies of Collateral  Material in any form for use in
accordance with its rights under this Agreement.

18.0     ENGLISH LANGUAGE

18.1 This Agreement has been prepared and executed in the English language which
will be the controlling language for all purposes of this Agreement.

19.0     EXPORT CONTROL

19.1 Each Party acknowledges that the Information and other items (including but
not limited to, any services and  training)  provided  under this  Agreement are
subject to US export and re-export laws and  regulations and any use or transfer
of such Information and other items must be authorized under those  regulations.
Each Party agrees that it will not use,  distribute,  transfer,  or transmit the
Information,  and other items (even if incorporated into other materials) except
in compliance  with US export  regulations.  If requested by a Party,  the other
Party also agrees to sign written assurances and other export-related  documents
as  may  be  required  for  the  requesting  Party  to  comply  with  US  export
regulations.

<PAGE>

19.2  Each  Party  further  agrees  that  it  shall  not  transfer  or  transmit
Information or other items received under this Agreement  (even if  incorporated
into  other  material)  to any  country  outside  of the US or  Canada or Israel
without the prior written consent of the disclosing Party.

20.0     FORCE MAJEURE

20.1 Neither Lucent nor N2W shall be held  responsible  for any delay or failure
in  performance  to the  extent  that such delay or failure is caused by a Force
Majeure.  Each such Party shall notify the other such Party  within  thirty (30)
days of the  occurrence  of a Force  Majeure.  If any Force  Majeure  occurs and
results in a delay or failure in performance,  the Parties may mutually agree to
resume  performance once the Force Majeure ceases with an option for the injured
Party to extend the performance  date up to the length of time the Force Majeure
endured.  Unless  written  notice is given  within  thirty  (30) days after such
injured  Party  is  apprised  of  the  occurrence  of  a  Force   Majeure,   the
aforementioned  option shall be deemed  selected.  Nothing  contained  herein or
elsewhere  shall  impose  any  obligation  on either  Party to settle  any labor
difficulty.

21.0     NON-WAIVER

21.1 No waiver of the terms and conditions of this Agreement,  or the failure of
any  Party  strictly  to  enforce  any  such  term or  condition  on one or more
occasions  shall be  construed  as a waiver of the same or of any other  term or
condition of this Agreement on any other occasion.

22.0     NOTICES

22.1 All  notices  under  this  Agreement  shall  be in  writing  (except  where
otherwise  stated) and shall be addressed to the addresses set forth below or to
such other address as either Party may designate by notice pursuant hereto. Such
notices  shall be deemed  to have  been  given  when  delivered  by hand or sent
prepaid by reputable international courier service, facsimile or electronic mail
to such applicable address.

         Lucent:           Leslie Brooks Petrichko
                           196 Gold Brook Circle
                           Stowe, VT 05672
                           Tel.#: (802) 253-0918

         N2W:              Net2Wireless Corporation
                           10 Haamal Street
                           Afek Park
                           Rosh Haayin 48092
                           Israel

                           Attn.:   Yaron Sobol, General Counsel
                           Fax #: (+)972-3-9158991

<PAGE>

23.      PUBLICATION OF AGREEMENT

23.1 The Parties shall keep the provisions of this Agreement submitted hereunder
confidential  except as  reasonably  necessary for  performance  hereunder or in
connection with any prospective  assignments of rights and/or duties  hereunder,
and  except to the extent  disclosure  may be  required  by  applicable  laws or
regulations,  in which latter case, the Party  required to make such  disclosure
shall  promptly  inform the other Party prior to such  disclosure  in sufficient
time to enable each such other Party to make known any objections it may have to
such  disclosure,  and to take all reasonable steps to secure a protective order
or otherwise assure that the Agreement or order will be withheld from the public
record,  provided,  however,  that the above  shall not apply in the event  such
disclosure is required under applicable securities law and regulations.

24.0     PUBLICITY

24.1 A Party shall submit to the other proposed copy of all Advertising  wherein
the name, trademark, code, specification or service mark of another Party or its
Affiliates  is  mentioned;  and no Party shall  publish or use such  Advertising
without the other's prior written approval.

25.0     RELEASES VOID

25.1 Neither Party shall require (i) waivers or releases of any personal  rights
or (ii) execution of documents  which conflict with the terms of this Agreement,
from employees, agents,  representatives or customers of the other in connection
with  visits to its  premises  and both  Parties  agree  that no such  releases,
waivers or documents  shall be pleaded by them or third persons in any action or
proceeding.

26.0     RIGHT OF ACCESS

26.1 Each  Party  shall  provide  the other  such  access  to its  premises  and
facilities as is reasonably required in connection with the performance of their
respective  obligations  under this Agreement.  No charge shall be made for such
access.  Reasonable  prior  notification  will be given when access is required.
Neither Party shall require  releases of any personal  rights in connection with
visits to its premises.

27.0     SEVERABILITY

27.1 If any  provision  in  this  Agreement  shall  be  held  to be  invalid  or
unenforceable,  the remaining portions shall remain in effect. In the event such
invalid or  unenforceable  provision is considered an essential  element of this
Agreement, Lucent and N2W shall promptly negotiate a replacement provision.

28.0     SURVIVAL OF OBLIGATIONS

28.1 The Parties' rights and obligations which, by their nature,  would continue
beyond the  termination,  cancellation,  or expiration of this Agreement,  shall
survive such termination, cancellation, or expiration.

<PAGE>

29.0     TERMINATION OF AGREEMENT FOR CAUSE

29.1 This  Agreement  may be  terminated by either Party upon the failure of the
other  Party  to  cure  any  material  default   following  written  notice  and
opportunity of thirty (30) days to cure,  provided,  however,  that either Party
will have the right to terminate this Agreement  immediately  upon notice to the
other Party in the following circumstances:

         (i)      If the  other  Party  becomes  insolvent  or unable to pay its
                  debts in the ordinary course of its business;

         (ii)     If a voluntary  petition under  applicable  bankruptcy laws is
                  filed by or against the other Party;

         (iii)    If a receiver is  appointed  for the  business  affairs of the
                  other  Party or the other Party  makes an  assignment  for the
                  benefit of creditors;

         (iv)     If the other Party  liquidates  or ceases doing  business as a
                  going concern; or

         (v)      If N2W fails to maintain interoperability compatibility.

30.0     CONDUCT UPON TERMINATION OR EXPIRATION

30.1 In the event  this  Agreement  is not  renewed or is  terminated,  then the
following shall occur, unless the Parties otherwise agree in writing:

         (i)      Any  use  of  the  other  Party's  marks,  use  of  Collateral
                  Material,  and  marketing  efforts by Lucent,  not  previously
                  commenced,   shall   terminate  on  the   effective   date  of
                  termination or expiration;

         (ii)     Both parties will honor the terms and  conditions  of joint or
                  coordinated  proposals submitted to Registered Lucent Accounts
                  prior  to the  termination  or  expiration  date.  All work on
                  proposals  including  Products not yet submitted  shall cease.
                  N2W shall continue to honor all contracts it has executed with
                  Registered Lucent Accounts;

         (iii)    N2W shall pay Lucent all amounts then  currently  owed but not
                  previously paid to Lucent. N2W will also pay, when they become
                  due, all amounts  which it will owe to Lucent in the future in
                  accordance with Article 6.0, COMMISSION; and

         (iv)     Neither  Party shall have any liability to the other Party for
                  damages of any kind,  including  incidental  or  consequential
                  damages,  on account of such termination or expiration of this
                  Agreement.  Without  limiting the generality of the foregoing,
                  neither Party shall be liable to the other Party on account of
                  such  termination or expiration for  reimbursement  or damages
                  for the loss of goodwill,  prospective  profits or anticipated
                  sales, or on account of any expenditures,  investment,  leases
                  or  commitments  made  by  such  Parties  or  for  any  reason
                  whatsoever  based upon or growing out of such  termination  or
                  expiration, except as provided in paragraph (iii) herein.

<PAGE>

31.0     USE OF INFORMATION

31.1 All Information which bears a legend or notice restricting its use, copying
or dissemination, shall remain the property of the furnishing Party and shall be
subject to the  provisions  of this  Article.  The  furnishing  Party grants the
receiving  Party  the  right  to use  such  Information  only as  follows.  Such
Information (1) shall not be reproduced or copied,  in whole or part, except for
use as authorized in this  Agreement;  and (2) shall,  together with any full or
partial copies thereof,  be returned or destroyed when no longer needed.  Unless
the furnishing  Party  consents in writing,  such  Information,  except for that
part,  if any,  which is known to the receiving  Party free of any  confidential
obligation,  or which  becomes  generally  known to the public  through acts not
attributable  to the  receiving  Party,  shall  be  held  in  confidence  by the
receiving  Party.  The receiving  Party may disclose such  Information  to other
persons, upon the furnishing Party's prior written authorization,  but solely to
perform  acts which this clause  expressly  authorizes  the  receiving  Party to
perform itself and further  provided such other person agrees in writing (a copy
of which writing will be provided to the furnishing Party at its request) to the
same conditions  respecting use of Information  contained in this Article and to
any other  reasonable  conditions  requested by the  furnishing  Party.  Nothing
herein  shall be deemed to  prevent  the  receiving  Party from  disclosing  the
Information in response to legal process under applicable law, provided that the
receiving Party (i) takes all reasonable steps available to keep the Information
from the public record,  and (ii) promptly notifies the furnishing Party of such
process prior to disclosure so that the furnishing Party may seek an appropriate
protective order and/or waive compliance with the terms hereof.

31.2 N2W acknowledges  that Lucent is likely to provide to N2W information about
Lucent  Customers  in  connection  with  the  Parties'  cooperation  under  this
Agreement.  N2W understands that all such customer information,  including,  but
not limited to, names,  addresses,  telephone  numbers,  and  telecommunications
needs, is confidential to Lucent whether or not available publicly,  and whether
or not  marked as  confidential,  and shall be treated  in  accordance  with the
requirements  of this article.  N2W agrees that such customer  information  will
only be used to perform  services  for Lucent  Customers  pursuant to a contract
with  the  relevant  Lucent  Customer,   or  in  connection  with  the  Parties'
cooperation  under this  Agreement,  and will not be used for any other purpose,
including  the  solicitation  or  servicing of Lucent  Customers or  prospective
customers, except as expressly authorized in writing by Lucent.

32.0     LIMITATION OF LIABILITY

32.1 NEITHER PARTY, NOR ITS AFFILIATES, NOR THE DIRECTORS,  OFFICERS, EMPLOYEES,
AGENTS, REPRESENTATIVES,  SUCCESSORS OR ASSIGNS OF SUCH PARTY OR ITS AFFILIATES,
SHALL  IN ANY  EVENT  BE  LIABLE  TO  THE  OTHER  PARTY  (INCLUDING  HEREIN  ITS
AFFILIATES) OR TO ANY OTHER COMPANY OR ENTITY FOR ANY INCIDENTAL, CONSEQUENTIAL,
OR ANY  OTHER  INDIRECT  LOSS OR DAMAGE  ARISING  OUT OF THIS  AGREEMENT  OR ANY
OBLIGATION  RESULTING  THEREFROM,  WHETHER IN AN ACTION  FOR OR  ARISING  OUT OF
BREACH OF CONTRACT,  FOR TORT,  OR ANY OTHER CAUSE OF ACTION,  EXCEPT WHERE SUCH
LOSS ARISES FROM BREACH OF A PARTY'S  OBLIGATION  SET OUT IN ARTICLE 31, "USE OF
INFORMATION".  EACH PARTY'S  ENTIRE  LIABILITY FOR ANY CLAIM OR LOSS,  DAMAGE OR
EXPENSE FROM ANY CAUSE  WHATSOEVER  SHALL IN NO EVENT EXCEED,  IN THE AGGREGATE,
THE  GREATER  OF  $100,000  OR THE  AMOUNT OF MONIES  PAID OR PAYABLE TO

<PAGE>

COMPANY HEREUNDER.  NOTHING HEREIN SHALL BE DEEMED TO EXCUSE COMPANY'S LIABILITY
TO PAY  COMMISSIONS TO THE FULL EXTENT  PROVIDED IN THIS AGREEMENT OR TO RELIEVE
COMPANY OF ANY EXPRESS REMEDY SET FORTH IN THIS AGREEMENT.

32.2 NO ACTION OR  PROCEEDING  AGAINST  EITHER PARTY MAY BE COMMENCED  MORE THAN
EIGHTEEN (18) MONTHS AFTER THE CAUSE OF ACTION ACCRUES.

32.3 THIS CLAUSE SHALL SURVIVE  FAILURE OF ANY EXCLUSIVE  REMEDY SET OUT IN THIS
AGREEMENT.

33.0     ENTIRE AGREEMENT

33.1 The terms and conditions  contained in this  Agreement and any  subordinate
agreement supersede all prior oral or written understandings between the Parties
with respect to the subject matter  thereof and constitute the entire  agreement
of the Parties with respect to such subject  matter.  Such terms and  conditions
shall not be  modified  or  amended  except by a  writing  signed by  authorized
representatives of both Parties.

                           [intentionally left blank]

<PAGE>

IN WITNESS THEREOF, the Parties have executed this Agreement on the respective
dates entered below.

             LUCENT TECHNOLOGIES INC.              NET2WIRELESS CORPORATION

By:                                           By:
   ------------------------------------------    ----------------------------
                    (Signature)                     (Signature)

                  Sandip Mukerjee                 Nehemia Davidson
   ------------------------------------------    ----------------------------
                   (Typed Name)                     (Typed Name)

     Director, Product Management & Marketing           CEO
   ------------------------------------------    ----------------------------
                     (Title )                         (Title )

   ------------------------------------------    ----------------------------
                   (Date Signed)                   (Date Signed)

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