Document:

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                                                                    EXHIBIT 4.14

                            SUBSCRIPTION AGREEMENT

     This Subscription Agreement (the "Agreement") is made as of April 27, 2000
between Optical Networks, Incorporated, a California corporation, with its
principal office at 166 Baypointe Parkway, San Jose, California 95134 and CCT
Telcom Holdings Limited, a company incorporated in the Cayman Islands, with
its principal office at 32/F. China Merchants Tower, Shun Tak Centre, 168-200
Connaught Road Central, Hong Kong (the "Purchaser").

1.   SUBSCRIPTION

     The Purchaser hereby irrevocably subscribes for and agrees to purchase, on
and subject to the terms and conditions set forth herein, from Optical Networks,
Incorporated, a California corporation, or its successor corporation upon a
reincorporation into Delaware (hereinafter, collectively referred to as the
"Company"), and the Company agrees to sell to the Purchaser, a number of shares
of its Common Stock (the "Shares") equal to $10,000,000 divided by the per share
price to the public in the Company's initial public offering (the "IPO")
(rounded down to the nearest whole share) at a price per share equal to the per
share price to the public in the IPO.  Purchaser hereby acknowledges that the
Company is currently incorporated in California and may undertake a
reincorporation in Delaware and in conjunction therewith may change its name.

2.   PAYMENT

     At the Closing, as defined below, the aggregate purchase price for the
Shares (the "Subscription Price"), shall be paid by wire transfer to the account
of the Company pursuant to instructions and account information to be provided.

3.   DOCUMENTS TO BE PROVIDED BY PURCHASER

     Contemporaneously herewith, the Purchaser and the Company are entering the
Restated and Amended Investors' Rights Agreement attached hereto as Exhibit A
(the "Rights Agreement") to be effective as of the Closing (defined below), and
the Regulation S Investor Representation Letter attached hereto as Exhibit B
(the "Regulation S Letter").

4.   CLOSING AND DELIVERY OF SHARE CERTIFICATES

     Delivery and payment for the Shares will be completed in one closing (the
"Closing") at the offices of Fenwick & West LLP, Two Palo Alto Square, Palo
Alto, California at 9:00 a.m. Pacific Time (the "Closing Time") on the closing
date of the IPO or at such earlier date and time as the Company and the
Purchaser may agree in writing (the "Closing Date").

     A certificate representing the Shares (the "Certificate") will be delivered
at Closing against payment to the Company of the Subscription Price in the
manner specified in Section 2 above.
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5.   CONDITIONS TO CLOSING BY THE PURCHASER

     The Purchaser's obligation to purchase the Shares at the Closing is subject
to fulfillment on or prior to the Closing Date of each of the following
conditions (any of which may be waived by the Purchaser in its sole discretion):

     5.1  Rights Agreement.  The Company shall have executed and delivered the
Rights Agreement to the Purchaser.

     5.2  Registration Statement.  The registration statement filed with the
Securities and Exchange Commission in connection with the Company's initial
public offering of its common stock to the public shall have been declared
effective.

     5.3  Representations and Warranties.  The representations and warranties
made by the Company in Section 7 hereof shall be true and correct when made, and
shall be true and correct on the Closing Date (unless provided otherwise in
Section 7) with the same force and effect as if such representations had been
made on and as of said date.  The representation in Section 7.3, other than as
updated by the Registration Statement referred to in Section 5.2 as of the
Closing Date, shall also be true and correct on the Closing Date with the same
force and effect as if such representations had been made on and as of said date

     5.4  Opinion as to Shares.  The Purchaser shall have received a customary
opinion of Fenwick & West as to the validity of the Shares being purchased.

6.   CONDITIONS TO CLOSING BY THE COMPANY

     The Company's obligation to issue and sell the Shares to the Purchaser at
the Closing is subject to the fulfillment of the following conditions (any of
which, other than Section 6.3, may be waived by the Company in its sole
discretion):

     6.1  Representations and Warranties.  The representations and warranties
made by the Purchaser in Section 9 hereof and in the Regulation S Letter shall
be true and correct when made, and shall be true and correct on the Closing Date
with the same force and effect as if such representations had been made on and
as of said date.

     6.2  Payment.  The Company shall have received from the Purchaser payment
in full for the Subscription Price.

     6.3  Board Approval.  The Company's Board of Directors shall have
authorized or ratified and approved this Agreement and the transactions
contemplated hereby.

7.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to the Purchaser that, except as
otherwise set forth on the Schedule of Exceptions attached as Exhibit C hereto,
the following will be true and correct as of the Closing Date (except for the
representations contained in Section 7.1 and 7.3, which are true only as of the
date hereof):

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     7.1  Organization and Standing.  The Company is a corporation duly
organized and validly existing under the laws of the State of California and is
in good standing under such laws.  The Company has all requisite corporate power
to own and operate its properties and assets, and to carry on its business as
presently conducted and as proposed to be conducted.

     7.2  Corporate Power.  The Company has all requisite power to execute and
deliver this Agreement and the Rights Agreement, to sell and issue the Shares
hereunder and to carry out and perform its obligations under the terms of this
Agreement and the Rights Agreement.

     7.3  Financial Statements.  The Company has delivered to the Purchaser the
audited financial statements of the Company as of December 31, 1999 (the
"Financial Statements"). The Financial Statements, together with the notes
thereto, are complete and correct in all material respects, have been prepared
in accordance with generally accepted accounting principles consistently applied
throughout the periods covered thereby, and present fairly the financial
position of the Company as of their respective dates.  The Company has no
liabilities which are, individually or in the aggregate, material to the
business or financial condition of the Company (of the type required to be
included in a balance sheet prepared in accordance with generally accepted
accounting principles), except for (i) liabilities disclosed in the Financial
Statements, (ii) liabilities that have been incurred by the Company since
December 31, 1999 in the ordinary course of business, and (iii) liabilities that
have not had a material adverse effect on the Company's business or financial
condition.

     7.4  Authorization.  All corporate action on the part of the Company, its
directors, and its shareholders that is necessary for the authorization,
execution, delivery, and performance of this Agreement and the Rights Agreement
by the Company, for the authorization, sale, issuance, and delivery of the
Shares, and for the performance by the Company of all of its obligations
hereunder (except for the performance of its covenants to be performed after
Closing) will have been taken prior to the Closing.  This Agreement and the
Rights Agreement, when executed and delivered by the Company, will constitute
valid and legally binding obligations of the Company, enforceable in accordance
with their respective terms, subject to (i) laws of general application relating
to bankruptcy, insolvency, and the relief of debtors, (ii) rules of law
governing specific performance, injunctive relief, or other equitable remedies,
and (iii) the extent that the indemnification provisions of Section 2.9 of the
Rights Agreement may be limited by principles of public policy.  The Shares,
when issued in accordance with this Agreement, will be duly authorized, validly
issued, fully paid, and nonassessable; provided, however, that the Shares may be
subject to certain restrictions on transfer under applicable state and Federal
securities laws.

     7.5  Governmental Consents, etc.  No consent, approval, or authorization
of, or designation, declaration, or filing with, any governmental authority on
the part of the Company is required in connection with the valid execution and
delivery of this Agreement, or for the offer, sale, or issuance of the Shares,
or for the consummation of any other transaction contemplated hereby, except
qualification (or taking such action as may be necessary to secure an exemption
from qualification, if available) of the offer and sale of the Shares under the
California Corporate Securities Law of 1968, as amended, and other applicable
blue sky laws, which filing and qualification, if required, will be accomplished
in a timely manner prior to or promptly after the Closing.

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     7.6  Brokers or Finders.  The Company has not incurred, and will not incur,
directly or indirectly, as a result of any action taken by the Company, any
liability for brokerage or finders' fees or agents' commissions, or any similar
charges, in connection with this Agreement or any transaction contemplated
hereby.

     7.7  No Conflict. The execution, delivery, and performance of, and
compliance with, this Agreement and the Rights Agreement, and the issuance of
the Shares, (i) have not resulted in and will not result in any violation of, or
conflict with, or constitute a default under, any term of its Articles or
Certificate of Incorporation or Bylaws, or result in the creation of any
mortgage, pledge, lien, encumbrance, or charge upon any of the properties or
assets of the Company, and (ii) will not result in the suspension, revocation,
impairment, forfeiture, or non-renewal of any material permit, license,
authorization, or approval applicable to the Company, its business, or any of
its properties or assets.

8.   MATTERS RELATING TO THE OFFER AND SALE OF THE SHARES

     The Purchaser acknowledges and agrees that: (i) it has received no
registration statement, prospectus or any similar document in connection with
its purchase of the Shares, (ii) its decision to execute this Agreement and the
Rights Agreement and to purchase the Shares has not been based upon any verbal
or written representations made by or on behalf of the Company, and (iii) its
decision to purchase the Shares is based upon the information, representations
and covenants of the Company contained in this Agreement, its own review of
Company documents and records, and publicly available information concerning the
Company.

9.   REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

     The Purchaser hereby represents, warrants, and covenants to the Company
(which representations, warranties, and covenants shall survive the Closing) as
of the date hereof and as of the Closing Date, as follows:

     9.1  Purchaser Qualifications.  The Purchaser is an "accredited investor"
within the meaning of Rule 501(a) of Regulation D promulgated under the
Securities Act of 1933, as amended (the "Securities Act"), and has substantial
experience in evaluating and investing in private placement transactions, and as
such is capable of evaluating the merits and risks of its investment in the
Company.  The Purchaser, by reason of its business or financial experience or
the business or financial experience of its professional advisors who are not
directly or indirectly affiliated with the Company or any affiliate or selling
agent of the Company, has the capacity to protect its own interests in
connection with its purchase of the Shares.

     9.2  Investment.  The Purchaser is acquiring the Shares for investment for
the Purchaser's own account, not as a nominee or agent, and not with the view to
or for resale in connection with any distribution thereof.  The Purchaser
understands that the offer and sale of the Shares have not been, and will not
be, registered under the Securities Act by reason of a specific exemption from
the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of
the Purchaser's representations as expressed herein.

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     9.3  Rule 144.  The Purchaser acknowledges that the Shares must be held
indefinitely unless the resale of the Shares is subsequently registered under
the Securities Act or an exemption from such registration is available.  The
Purchaser is aware of the provisions of Rule 144 promulgated under the
Securities Act which permit limited resales of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among
other things, (i) the existence of a public market for the shares, (ii) the
availability of certain current public information about the Company, (iii) the
resale occurring not less than one year after a party has purchased and fully
paid for the shares to be sold, (iv) the sale being effected through a "broker's
transaction" or in transactions directly with a "market maker" and (v) the
number of shares being sold during any three-month period not exceeding
specified limitations.

     9.4  No Public Market.  The Purchaser understands that no public market now
exists for any of the securities issued by the Company and that there is no
assurance that a public market will ever exist for the Shares.

     9.5  Access to Data.  The Purchaser and its representatives, if any, has
had an opportunity to ask questions of, and receive answers from,
representatives of the Company concerning the Company and the terms and the
conditions of this transaction, as well as to obtain any information requested
by the Purchaser or its representatives.  Any questions raised by the Purchaser
or its representatives were answered to the satisfaction of the Purchaser or its
representatives.  The Purchaser understands that such discussions, as well as
any written information issued by the Company, were intended to describe certain
aspects of the Company's business and prospects but were not a thorough or
exhaustive description.  The Purchaser's decision to enter into the transaction
contemplated hereby is based in part on the answers to such questions as the
Purchaser and its representatives have raised and on the Purchaser's own
evaluation of the risks and merits of the transaction and the Company's proposed
business activities.  The foregoing, however, does not limit or modify the
representations and warranties of the Company in Section 7 of this Agreement or
the right of the Purchaser to rely thereon.

     9.6  Authorization.  This Agreement and the Rights Agreement, when executed
and delivered by the Purchaser, will constitute valid and legally binding
obligations of the Purchaser, enforceable in accordance with their respective
terms, subject to laws of general application relating to bankruptcy,
insolvency, and the relief of debtors, and rules of law governing specific
performance, injunctive relief, or other equitable remedies, and except to the
extent that the indemnification provisions of Section 2.9 of the Rights
Agreement may be limited by principles of public policy.

     9.7  Brokers or Finders.  The Company has not incurred, and will not incur,
directly or indirectly, as a result of any action taken by the Purchaser, any
liability for brokerage or finders' fees or agents' commissions or any similar
charges in connection with this agreement or any transaction contemplated
hereby.

     9.8  Tax Consequences.  The Purchaser has reviewed with its own tax
advisors the federal, state, local and, if necessary, foreign tax consequences
of this investment and the transactions contemplated by this Agreement.  The
Purchaser is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents and understands that the
Purchaser (and not the Company) shall be responsible for its own tax

                                      -5-
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liability that may arise as a result of this investment or the transactions
contemplated by this Agreement.

10.  RESTRICTIONS ON TRANSFER

     10.1  Restrictions on Transfer.  The Shares shall not be sold, assigned,
transferred, or pledged except upon the conditions specified in this Section,
the Regulation S Letter, the Restated Articles, and the Bylaws, which conditions
are intended, among other things, to ensure compliance with the provisions of
the Securities Act.  Any proposed transferee of the Shares held by the Purchaser
must agree (prior to transfer) to take and hold such securities subject to the
provisions and upon the conditions specified in this Article.

     10.2  Restrictive Legend.  Each stock certificate representing the Shares
and any other securities issued in respect of the Shares upon any stock split,
stock dividend, merger, consolidation, recapitalization, or similar event, shall
be stamped or otherwise imprinted with legends in substantially the following
form (in addition to any legend required under the Regulation S Letter and
applicable state securities laws):

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").  THESE SECURITIES
     HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION
     WITH, THE DISTRIBUTION THEREOF.  THESE SECURITIES MAY NOT BE OFFERED, SOLD,
     PLEDGED, OR TRANSFERRED UNLESS (I) A REGISTRATION STATEMENT UNDER THE ACT
     IS IN EFFECT AS TO THESE SECURITIES OR (II) THERE IS AN OPINION OF COUNSEL,
     SATISFACTORY TO THE ISSUER, THAT AN EXEMPTION THEREFROM IS AVAILABLE.

     COPIES OF THE AGREEMENTS COVERING THE PURCHASE OF THESE SECURITIES AND
     RESTRICTING THEIR TRANSFER, THE CERTIFICATE OF INCORPORATION OF THE COMPANY
     CONTAINING SUCH RESTRICTIONS, AND THE COMPANY'S BYLAWS, MAY BE OBTAINED AT
     NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD OF THIS CERTIFICATE
     TO THE SECRETARY OF THE COMPANY AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
     COMPANY.

     The Purchaser of Shares and any permitted transferees consent to the
Company making a notation on its records and giving instructions to any transfer
agent of the Shares in order to implement the restrictions on transfer described
in this Section.

     10.3  Notice of Proposed Transfers.  Prior to any proposed transfer of any
Shares, unless there is in effect a registration statement under the Securities
Act covering the proposed transfer, the holder thereof shall give written notice
(the "Notice") to the Company of such holder's intention to make such transfer.
The Notice shall describe the manner and circumstances of the proposed transfer
in sufficient detail.  If reasonably requested by the Company prior to the
transfer being effected, the holder shall provide to the Company a written
opinion of legal counsel who shall be reasonably satisfactory to the Company,
addressed to the

                                      -6-
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Company and reasonably satisfactory in form and substance to the Company's
counsel, to the effect that the proposed transfer of the Restricted Securities
may be effected without registration under the Securities Act. Each stock
certificate evidencing the Restricted Securities so transferred shall bear the
appropriate restrictive legends set forth in Section 10.2 and in the Regulation
S Letter.

11.  RELIANCE UPON REPRESENTATIONS, WARRANTIES AND COVENANTS

     The Purchaser acknowledges that the representations, warranties and
covenants contained in this Agreement are made with the intent that they may be
relied upon by the Company to, among other things, determine its eligibility to
purchase the Shares. The Purchaser further agrees that by accepting the Shares,
the Purchaser shall be representing and warranting that the foregoing
representations and warranties are true as of the Closing with the same force
and effect as if they had been made by the Purchaser at the Closing.

     The Company acknowledges that the representations, warranties and covenants
contained in this Agreement are made with the intent that they may be relied
upon by the Purchaser.  The Company further agrees that by selling the Shares,
the Company shall be representing and warranting that the foregoing
representations and warranties are true as of the Closing with the same force
and effect as if they had been made by the Company at the Closing.

12.  TERMINATION

     This Agreement shall terminate and be of no further force and effect, and
the rights of the Purchaser and the Company hereunder shall terminate if the
registration statement filed in connection with the Company's IPO shall not have
been declared effective by the Securities and Exchange Commission on or before
July 31, 2000.

     Further, the Company shall have the right to terminate this Agreement and
the rights of the Purchaser hereunder, if the U.S. Securities and Exchange
Commission should determine that the sale of the Company securities hereunder
should be integrated with the IPO.

13.  GENERAL PROVISIONS

     13.1  Governing Law.  This Agreement shall be governed by and construed
exclusively in accordance with the internal laws of the State of California as
applied to agreements among California residents entered into and to be
performed entirely within California, excluding that body of law relating to
conflict of laws and choice of law.

     13.2  Survival.  The representations, warranties, and covenants of the
parties made herein shall survive the Closing and shall in no way be affected by
any investigation of the subject matter thereof made by or on behalf of the
parties.

     13.3  Successors and Assigns.  Except as otherwise expressly limited
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the
parties hereto, provided, however, that the rights of the Purchaser to purchase
Shares shall not be assignable without the written consent of the Company.

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     13.4  Entire Agreement; Amendment and Waiver.  This agreement and the other
documents delivered herewith constitute the full and entire understanding and
agreement between the parties with regard to the subject matters hereof and
thereof.  Any term of this agreement may be amended and the observance of any
term hereof may be waived (either prospectively or retroactively and either
generally or in a particular instance) only with the written consent of the
Purchaser and the Company.

     13.5  Notices, etc.  All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
addressed (i) if to the Purchaser, at its address set forth on Exhibit A, or at
such other address as the Purchaser shall have furnished to the Company in
writing, or (ii) if to any other holder of the Shares, at such address as such
holder shall have furnished the Company in writing, or, until any such holder so
furnishes an address to the Company, then to and at the address of the last
holder of such Shares who has so furnished an address to the Company, or (iii)
if to the Company, one copy to its address set forth on the first page of this
Agreement and addressed to the attention of the President, or at such other
address as the Company shall have furnished to the Purchaser, and another copy
to the Company's legal counsel to the attention of Michael Dillon, General
Counsel, 166 Baypointe Parkway, San Jose, CA 95134.

     13.6  Delays or Omissions.  No delay or omission to exercise any right,
power, or remedy accruing to any party upon any breach or default under this
Agreement, shall be deemed a waiver of any other breach or default theretofore
or thereafter occurring. Any waiver, permit, consent, or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any of the parties, shall be
cumulative and not alternative.

     13.7  Severability.  If any provision of this Agreement is held to be
unenforceable under applicable law, then such provision shall be excluded from
this Agreement and the balance of this Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.  The court in its discretion may substitute for the excluded provision an
enforceable provision, which in economic substance reasonably approximates the
excluded provision.

     13.8  California Corporate Securities Law.  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 THE QUALIFICATION BY SECTION 25100, 25102, OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY
CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED, UNLESS THE SALE IS SO
EXEMPT.

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     13.9  Headings.  The headings and captions used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting
this Agreement.  All references in this Agreement to articles, sections,
paragraphs, exhibits and schedules shall, unless otherwise provided, refer to
articles, sections and paragraphs hereof and exhibits and schedules attached
hereto, all of which exhibits and schedules are incorporated herein by this
reference.

     13.10  Third Parties.  Nothing in this Agreement, express or implied, is
intended to confer upon any person, other than the parties hereto and their
successors and assigns, any rights or remedies under or by reason of this
Agreement.

     13.11  Costs.  The Purchaser acknowledges and agrees that all costs and
expenses incurred by the Purchaser (including any fees and disbursements of any
counsel retained by the Purchaser) relating to the offer and sale of the Shares
to the Purchaser shall be paid by the Purchaser.

                                      -9-
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     13.12  Counterparts.  This agreement may be executed in any number of
counterparts, each of which shall be deemed an original and enforceable against
the parties actually executing such counterpart, and all of which together shall
constitute one and the same instrument.

     Effective as of the date first set forth above.

OPTICAL NETWORKS, INCORPORATED

By: /s/ Hugh C. Martin
   -------------------------------

Name: Hugh C. Martin
     -----------------------------

Title: President and CEO
      ----------------------------

CCT TELCOM HOLDINGS LIMITED

By: /s/ Flora Cheng Yuk Ching
   -------------------------------

Name: Flora Cheng Yuk Ching
     -----------------------------

Title: Director
      ----------------------------

                  [Signature Page to Subscription Agreement]

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                  Regulation S Investor Representation Letter
                  -------------------------------------------

     To:  Optical Networks, Incorporated, a California corporation, or its
     successor corporation upon a reincorporation into Delaware (the "Company")

          The undersigned (the "Purchaser") proposes to acquire securities
issued by the Company.   United States federal and state securities laws require
that the Company issue its securities only to purchasers that meet certain
qualifications.  Purchaser agrees that the representations and agreements made
by it in this Representation Letter will be used and relied upon by the Company
in issuing the Company's securities to Purchaser without registration under
federal and state securities laws.

          Purchaser has agreed to purchase shares of the Company's Common Stock
(the "Shares") under that certain Subscription Agreement dated as of  April ___,
2000 (the "Agreement").  In addition to the agreements, representations and
warranties made by Purchaser under the Agreement, Purchaser hereby agrees,
represents and warrants as follows:

          1.   Business or Financial Experience.  By reason of Purchaser's
business or financial experience or the business or financial experience of
Purchaser's professional advisors who are unaffiliated with and who are not
compensated, directly or indirectly, by the Company or any affiliate or selling
agent of the Company, Purchaser has the capacity to protect its own interests in
connection with its investment in the Shares.

          2.   Offshore Transaction.  The offer to Purchaser to acquire the
Shares was not made to any person within the United States (which, for purposes
of this Representation Letter, includes the territories and possessions of the
United States, any State of the United States and the District of Columbia),
and, at the time Purchaser initiated its order to buy the Shares, Purchaser was
outside the United States.  Purchaser certifies that it is not a U.S. person and
that it is not acquiring the Shares for the account or benefit of any U.S.
person.

          3.   Offering Restrictions.  Purchaser acknowledges and agrees that
the Shares (i) have not been registered under the U.S. Securities Act of 1933,
as amended (the "Securities Act"), will be issued under an exemption from
registration under the Securities Act provided for in Regulation S promulgated
under the Securities Act ("Regulation S") and (ii) in addition to any other
restrictions set forth herein, may not be offered or sold in the United States
or to any U.S. person (other then distributors) unless the Shares are registered
under the Securities Act or an exemption from the registration requirements of
the Securities Act is available.

          4.   Resale Restrictions.  Purchaser acknowledges and agrees that
hedging transactions involving the Shares may not be conducted unless in
compliance with the Securities Act.  Purchaser acknowledges and agrees that
during the one year period beginning on the date of Purchaser's acquisition of
the Shares (the "Restriction Period"):  (i) Purchaser may resell the Shares only
in accordance with the provisions of Regulation S, pursuant to registration
under the Securities Act or pursuant to an available exemption from the
registration requirements of the Securities Act; (ii) Purchaser may not engage
in hedging transactions with regard to the Shares prior to the end of the
Restriction Period; and (iii) (A) any offer or sale of the Shares shall not be
to a U.S. person or

                                      -1-
<PAGE>

for the account or benefit of a U.S. person; (B) prior to such purchase, the
purchaser of such Shares shall certify that (1) it not a U.S. person and is not
acquiring such Shares for the account or benefit of any U.S. person or (2) it is
a U.S. person who purchased such Shares in a transaction that did not require
registration under the Securities Act; (C) prior to such purchase, the purchaser
of such Shares shall agree to resell during the Restrictive Period such Shares
only in accordance with the provisions of Regulation S, pursuant to registration
under the Securities Act or pursuant to an exemption from the registration
requirements of the Securities Act; and (D) prior to such purchase, the
purchaser of such Shares shall agree that hedging transactions including such
Shares may not be conducted unless in compliance with the Securities Act.

          5.   No Directed Selling Efforts.  Purchaser acknowledges and agrees
that it is not aware of any activity initiated for the purpose or with the
effect of conditioning the market in the United States for the Shares offered to
it.

          6.   Stop Transfer Instructions and Legends.  Purchaser understands
that the Company will issue, and Purchaser consents to the issuing of, stop
transfer instructions to the Company's transfer agent with respect to the Shares
to assure compliance with the Securities Act.  Purchaser consents to the
placement of the following legend, in substantially the form below, on each
certificate representing the Shares, in addition to any legends described in the
Agreement:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND THE COMPANY DOES
NOT INTEND TO REGISTER THEM.  THE SHARES MAY NOT BE OFFERED, TRANSFERRED OR SOLD
EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S PROMULGATED UNDER THE
SECURITIES ACT, PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
HEDGING TRANSACTIONS INVOLVING THE SHARES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT."

          6.   Definition of U.S. Person.  A "U.S. person", as used in this
Representation Letter, means (i) any natural person resident in the United
States; (ii) any partnership or corporation organized or incorporated under the
laws of the United States; (iii) any estate of which any executor or
administrator is a U.S. person; (iv) any trust of which any trustee is a U.S.
person; (v) any agency or branch of a foreign entity located in the United
States; (vi) any non-discretionary account or similar account (other than an
estate or trust) held by a dealer or other fiduciary for the benefit or account
of a U.S. person; (vii) any discretionary account or similar account (other than
an estate or trust) held by a dealer or other fiduciary organized, incorporated
or (if an individual) resident in the United States; and (viii) any partnership
or corporation if: (A) organized or incorporated under the laws of any foreign
jurisdiction; and (B) formed by a U.S. person principally for the purpose of
investing in securities not registered under the Securities Act, unless it is
organized or incorporated, and owned, by accredited investors (as defined in
Rule 501(a) under the Securities Act) who are not natural persons, estates or
trusts.

          7.   Conflict with Agreement.  To the extent that any provision herein
conflicts with any provision of the Agreement, Purchaser agrees that the
provision herein will govern and control.

                                      -2-
<PAGE>

     In Witness Whereof, the undersigned Purchaser has executed this Investor
Representation Letter as of the date set forth below.

Dated as of April 27, 2000             Purchaser:

                                       CCT Telcom Holdings Limited

                                       By: /s/ Flora Cheng Yuk Ching
                                          --------------------------

                                       Name: Flora Cheng Yuk Ching
                                            ------------------------

                                       Title: Director
                                             -----------------------

Agreed to and Accepted:

Optical Networks, Incorporated

By: /s/ Hugh C. Martin
   --------------------------

Name: Hugh C. Martin
     ------------------------

Title: President and CEO
      -----------------------

                                      -3-<PAGE>

                                                                   EXHIBIT 10.24

                      [CONFIDENTIAL TREATMENT REQUESTED]

                              PURCHASE AGREEMENT
                              -------------------

     This Purchase Agreement ("Agreement") is made between ONI Systems Corp.
("ONI") and E-TEK Dynamics, Inc. and its affiliates ("E-TEK"), as of the latest
date signed below.

             ONI Systems Corp.                         E-TEK Dynamics, Inc.

   By: /s/ Martin Desroches                  By: /s/ Sanjay Subheder
      -------------------------------           --------------------------------

 Name: Martin Desroches                    Name: Sanjay Subheder
      -------------------------------           --------------------------------

Title: V.P. Operations                    Title: CFO
      -------------------------------           --------------------------------

 Date:  03/24/00                           Date: 3/24/00
      -------------------------------           --------------------------------
================================================================================

     1.  Supply Orders.

     1.1.  "Supply" or "Supplies" means the E-TEK Optical Components and Module
Integration Services listed in Exhibit B, as may be amended from time to time by
mutual written agreement. Sales of E-TEK products not listed in that exhibit
will also be subject to the terms of trade herein.

     1.2.  "Specifications" means the specifications for the Supplies as agreed
by the parties.

     1.3.  ONI will submit purchase orders ("Orders") to E-TEK for Supplies from
time to time, specifying the type and quantity of Supplies and the proposed
delivery dates and shipping instructions.  In the event the terms of any Order,
acknowledgement, invoice, confirmation or similar document conflict with or are
additional to the terms of this Agreement, the terms of this Agreement alone
shall apply and shall govern regardless of execution of such document by one or
both parties.

     1.4.  E-TEK will accept and acknowledge in writing all Orders submitted by
ONI within *                     * days after receipt thereof, subject to a *
* lead time and E-TEK's available manufacturing capacity. Each acknowledgement
shall include a firm shipping schedule for the Supplies ordered.  E-TEK shall
give prompt notice to ONI of any anticipated delay in meeting the shipping
schedule.  Such notice will include the reasons for the delay.

     1.5.  Subject to ONI's purchase commitments in Exhibit A, ONI may (i)
cancel delivery of Supplies under an Order, in whole or in part, subject to
payment of a cancellation fee based on the purchase price applicable to the
cancelled portion of the Order, in accordance with the following:

//
//

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
If E-TEK receives the cancellation notice this many      ....then ONI will pay a cancellation
 weeks before the delivery date                          fee equal to:
------------------------------------------------------------------------------------------------
<S>                                                      <C>
                    0 -  4 weeks                         *                                    *
                                                         ---------------------------------------
------------------------------------------------------------------------------------------------
                   >4 -  8 weeks                         *                                    *
                                                         ---------------------------------------
------------------------------------------------------------------------------------------------
                   >8 - 12 weeks                         *                                    *
                                                         ---------------------------------------
------------------------------------------------------------------------------------------------
                       >12 weeks                         *                                    *
                                                         ---------------------------------------
------------------------------------------------------------------------------------------------
</TABLE>

     and, (ii) reschedule delivery of Supplies under an Order one time as
follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------
If E-TEK receives the rescheduling notice this many        . . . then ONI may postpone delivery
weeks before the delivery date...                          by this time
------------------------------------------------------------------------------------------------
<S>                                                        <C>
               0 -  4 weeks                                * * weeks
------------------------------------------------------------------------------------------------
              >4 -  8 weeks                                * * weeks
------------------------------------------------------------------------------------------------
              >8 - 12 weeks                                * * weeks
------------------------------------------------------------------------------------------------
</TABLE>

     1.6  ONI may cancel delivery of Supplies, without penalty, when the
delivery of such Supplies is more than 30 days late. ONI must provide 7 days
written notice on late delivery order cancellation, no less than 30 days after
the then-current delivery date. E-TEK will have 7 days after notification to
deliver late material or renegotiate delivery dates.

     2.  Sales Forecasts.

     2.1.  ONI will give E-TEK monthly rolling *   *week forecasts ("Forecasts")
for the proposed purchase and sale of Supplies, broken down by weeks.  ONI shall
use commercially reasonable efforts to provide 52-week forecasts.

     2.2.  Subject to Sections 1.5 and Exhibit A of this Agreement, the *      *
weeks and only the *       * weeks of the rolling forecast are binding forecasts
("Binding Forecasts"). ONI will purchase and issue Orders for all Supplies
covered under Binding Forecasts, in the amounts, and for delivery at the times,
provided in such Binding Forecasts. (Higher quantities of Supplies in earlier
Forecasts will prevail over lower quantities in subsequent Forecasts.)

     3.  Volumes.

     3.1.  Notwithstanding any Forecast, ONI will purchase and issue Orders for
Supplies in accordance with the Purchase Commitment in Exhibit A.

     4.  Purchase Price.

     4.1.  The prices set forth on Exhibit B apply to all Supplies purchased by
ONI through *                   *. Prices for Supplies will be reviewed in good
faith by the parties *                * months ("Price Review").

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

     4.2.  Prices exclude taxes, shipping, handling, transportation and
insurance. Taxes and costs may be added to the invoice as a separate charge or
invoiced separately.

     5.  Payment.  E-TEK will invoice ONI upon shipment of Supplies. ONI will
pay the invoiced amount within thirty days from the date of delivery of the
Supplies. Such payments will be in U.S. currency. Any invoice not paid in full
by the due date will have a late payment charge of one and one-half percent per
month (or the maximum rate permitted by law, whichever is less) assessed against
any unpaid balance from the due date of the invoice until the date of payment.
E-TEK may hold shipment when payments are past due.

     6.  Delivery; Acceptance.

     6.1  Delivery of Supplies from E-TEK to ONI will be FCA/FOB (Incoterms) E-
TEK's facility.

     6.2.  Subject to the quarterly loss allowance described in Exhibit C, risk
of loss, but not title, to ONI components consigned to E-TEK shall pass to E-TEK
upon delivery of such components to E-TEK's carrier. All other shipment terms
for ONI components supplied on consignment to E-TEK will be governed by FCA/FOB
(Incoterms) ONI's facility.

     6.3.  ONI accepts delivery of all Supplies, requested on any given Order or
any Binding Forecasts, from E-TEK unless it notifies E-TEK in writing within
fifteen days of receipt that it rejects certain Supplies.  Any notice of
rejection will include the reasons for the rejection.

     6.4  E-TEK shall use commercially reasonable efforts to timely manufacture
sufficient Supplies pursuant to any accepted Orders.  In the event that Supplies
are delivered more than thirty days after the scheduled delivery date ("Delayed
Delivery"), ONI will have the right to recover damages equal to the difference
between the purchase price and the market price of the subject Supplies on the
scheduled delivery date. In addition, ONI may procure substitute products from
other suppliers at the cost or expense of ONI.  Any substitute products
purchased by ONI from other suppliers as a result of Delayed Delivery shall be
credited against ONI's Purchase Commitment to E-TEK set forth in Exhibit A.

     7.  Configuration Control.

     7.1.  ONI may ask E-TEK to change the Specifications of any Supply custom-
designed to ONI's Specifications.  E-TEK will use commercially reasonable
efforts to evaluate and make a requested change.  If the affected Supply is in
production and E-TEK determines to change the Specification as requested, ONI
will purchase any custom-designed work in process rendered non-conforming by
ONI's requested change.  If ONI's requested change alters E-TEK's cost of a
Supply, or requires additional time or resources for E-TEK to implement, then
the parties will negotiate a reasonable price adjustment and lead time for the
affected Supply and the parties will modify the Orders and forecasts
accordingly.
<PAGE>

     7.2.  E-TEK may change any Supply if the change does not render the Supply
non-conforming to the Specifications; provided that E-TEK notifies ONI in
writing promptly (as is reasonable under the circumstances) prior to
implementing such change in the Supply.  Such notice shall include a detailed
description of the changes to be made to the Supply and a written assurance that
such changes will not render the Supply non-conforming to the Specification.

     8.  Term and Termination.

     8.1  This Agreement will remain in effect until December 31, 2001 ("Initial
Term") and will automatically renew for successive *   * year periods.  Either
party can terminate the Agreement at the end of the Initial Term or at the end
of a subsequent renewal term by giving written notice to the other party at
least ninety days before the end of such term.

     8.2.  Either party may also terminate this Agreement upon written notice
if:

     8.2.1.  the other party breaches a material term of this Agreement and
fails to cure it within ninety days of receiving written notice of such breach.

     8.2.2.  the other party ceases to do business (excluding mergers,
acquisitions, consolidations or reorganizations) because of election to
dissolve, dissolution, insolvency, inability to pay debts as they become due,
general assignment for the benefit of creditors, or, upon the other party's
filing of any bankruptcy petition, whether voluntary or involuntary.

     9.  Intellectual Property Warranty and Indemnity.

     9.1.  E-TEK agrees to indemnify, defend and hold harmless ONI and its
officers, directors, successors and assigns from and against any and all loss,
damage, settlement or expense (including reasonable legal expenses), as
incurred, resulting from or arising out of any claims that any Supply or the use
or sale thereof infringe upon, misappropriate or violate any patents,
copyrights, or trade secret rights or proprietary rights (collectively,
"Intellectual Property Rights") of persons, firms or entities who are not
parties to this Agreement; provided that ONI  (i) immediately notifies E-TEK, in
writing, of any notice or claim of such alleged infringement, violation or
misappropriation involving the Supplies of which it becomes aware, and (ii)
permits E-TEK to control the defense, settlement, adjustment or compromise of
any such claim using counsel of E-TEK's own choosing; and, (iii) fully
cooperates with the defense.  ONI may employ counsel, at its own expense, to
assist it with respect to any such claim.

     9.2.  E-TEK's obligation to indemnify will not cover any claim that asserts
that a Supply infringes any third party's rights only when used in combination
with any other technology or device not supplied by E-TEK under this Agreement,
and not as a standalone product.

     9.3.  If by reason of such infringement claim, ONI shall be prevented or
are likely to be prevented by injunction or other legal means from selling or
using any Supplies, or if, in E-TEK's opinion, such claim is likely to occur, E-
TEK will have the right, but not the obligation, to (i) obtain all rights
required to permit the sale or use of the Supplies by ONI, or (ii) modify or
replace such Supplies to make them non-infringing (and extend this

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

indemnity thereto), provided that any such replacement or modified Supplies are
reasonably satisfactory to ONI. If E-TEK is unable to achieve either of the
options set forth above within a reasonable period of time after issuance of the
injunction, but in no event longer than ninety days after E-TEK's receipt of
notice thereof, then (i) ONI will immediately cease any further use and
distribution of the Supplies, (ii) any further supply obligations for those
Supplies will be terminated without any liability to E-TEK, and (iii) E-TEK will
promptly return the fees for those Supplies which are paid by ONI hereunder and
returned promptly to E-TEK (plus related shipping costs), less the amortized
portion of the purchase price amortized on a straight line basis over five years
from the date of purchase.

     9.4.  In no event will E-TEK's aggregate liability under this section ever
exceed the total purchase price received from ONI for the alleged infringing
Supply.

     9.5.  THE FOREGOING IS E-TEK'S SOLE OBLIGATION AND LIABILITY WITH RESPECT
TO ANY CLAIMS RELATING TO E-TEK'S ACTUAL OR ALLEGED INFRINGEMENT OR
MISAPPROPRIATION OF ANY THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS.  EXCEPT FOR
THE WARRANTY STATED IN SECTION 9.1, E-TEK DISCLAIMS ALL OTHER WARRANTIES,
EXPRESS AND IMPLIED, RELATING TO CLAIMS THAT THE SUPPLIES INFRINGE, OR ARE
DERIVED FROM, ANY THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS.

     10.  Product Warranties.

     10.1.  E-TEK warrants to ONI that for a period of *                     *
from the date of delivery of a Supply (the "Warranty Period") that such Supply
will be free from defects in materials and workmanship, and will conform to the
agreed-upon Specifications. This warranty shall not apply in any instance where
any such defect or nonconformity is a result, in whole or in part, of a non-E-
TEK-sourced defective or nonconforming component, material or product supplied
by or through ONI. This warranty is subject to proper installation, operation
and maintenance of the subject Supply in accordance with reasonable industry
standards and/or documentation (if any) to be provided by E-TEK.  E-TEK's sole
obligation under this warranty is, at E-TEK's option, to either repair, replace
or correct any defect, or to refund the purchase price upon 30 days from the
return of the defective Supply.  Prior to returning any defective Supply, ONI
will request a Return Material Authorization "RMA" number which will be provided
by E-TEK within 48 working hours.  All returned Supplies will be shipped to E-
TEK's principal offices with freight and insurance prepaid by ONI; provided,
that the cost will be reimbursed to ONI if the subject Supplies are
nonconforming or defective within the Warranty Period. Supplies that are
repaired or serviced by E-TEK will be warranted as provided in this section for
either the remainder of the original Warranty Period or ninety days after the
Supplies are re-delivered to ONI, whichever is later. E-TEK will provide in
writing a Preliminary Root Cause Analysis within 30 days of E-TEK's receipt of
defective Supplies, and a full Root Cause Analysis and Corrective Action plan
within 60 days of E-TEK's receipt of defective Supplies. Further grace periods
might be granted per E-TEK's request.

     10.2.  EXCEPT AS EXPRESSLY STATED IN THIS SECTION 10, E-TEK DISCLAIMS ALL
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

                      [CONFIDENTIAL TREATMENT REQUESTED]

     11.  Limitation of Liability.  EXCEPT FOR E-TEK'S INDEMNITY OBLIGATIONS SET
FORTH IN SECTION 9 (BUT SUBJECT TO THE LIMITS SET FORTH IN SECTION 9.4), IN NO
EVENT WILL EITHER PARTY HAVE ANY LIABILITY TO THE OTHER PARTY FOR ANY SPECIAL,
INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS
OF PROFITS OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS) THAT RELATE IN ANY WAY
TO THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF ANY DAMAGES.

     12.  Confidential Information.  Paragraphs 1-11, 13 and 15 of the parties'
February 3, 1999 Mutual Non-Disclosure Agreement ("NDA") are hereby incorporated
by reference into this Agreement.  All other sections of the NDA are terminated
by consent.  In addition, the parties acknowledge that: (i) this Agreement, its
terms and conditions, the Supplies, and the business relationship between the
parties, are all deemed to be "Confidential Information" (as defined in the
NDA); (ii) the NDA's term shall now extend to the date of expiration or
termination of this Agreement; and, (iii) Recipient's duty to protect
Confidential Information will expire five (5) years from its receipt of that
information.  Notwithstanding the foregoing, the parties may issue a joint press
release commenting generally on the existence of a business relationship and
purchase agreement between them, provided specific terms and conditions are not
disclosed.

     13.  Notices. Any notice will be in writing, delivered either by overnight
mail or courier, and will be addressed as follows:

     If to ONI:                         If to E-TEK:
     ONI Systems Corp.                  E-TEK Dynamics, Inc.
     166 Baypointe Parkway              1865 Lundy Avenue
     San Jose, CA 9513                  San Jose, CA 95131, U.S.A.
     Attn: General Counsel              Attn: General Counsel

     Notices will be deemed to have been effectively given and received on the
date of delivery.

     14.  Relationship of Parties.  E-TEK and ONI are separate and distinct
entities, and this Agreement does not create a partnership, joint venture, or
any common undertaking.

     15.  Force Majeure.  Neither party shall be responsible or liable for any
delay or failure to deliver or perform, due to any causes beyond the reasonable
control of the delayed party (a "Force Majeure Condition").  In the event of a
Force Majeure Condition, the delayed party shall notify the other party of the
delay in delivery or other performance, and such time will be extended for a
period of time equal to the duration of such Force Majeure Condition; provided
that if a Force Majeure Condition continues beyond ninety days, the non-delayed
party may terminate this Agreement upon notice to the delayed party.

     16.  Governing Law; Attorneys' Fees. This Agreement will be governed by and
construed in accordance with the laws of California (excluding laws and
principles relating to the conflict of laws).  Each party agrees that in any
action to enforce this
<PAGE>

Agreement, the prevailing party will be entitled to recover reasonable
attorneys' fees and other costs incurred therein, in addition to any other
appropriate relief.

     17.  Severability.  If any term or provision of this Agreement is held
invalid or unenforceable to any extent, the remainder of this Agreement will not
be affected and each other term and provision will be valid to the fullest
extent permitted by law.

     18.  Entire Agreement; Modification; Waiver.  This Agreement constitutes
the entire agreement between the parties with respect to its subject matter and
supersedes all prior and contemporaneous agreements, representations and
understandings of the parties. No modification of this Agreement will be binding
unless executed in writing by the parties. No waiver of any provision will be
deemed a waiver of any other provision, nor will any waiver constitute a
continuing waiver. No waiver will be binding unless executed in writing.

     19.  Binding Effect; Assignment.  This Agreement will be binding on and
will inure to the benefit of the parties and their respective agents, successors
and permitted assigns; provided, however, that no party will have the right to
transfer or assign any rights or obligations under this Agreement without first
obtaining the other party's written consent, except no consent will be required
for assignments in connection with a merger, corporate reorganization, or sale
of all, or substantially all, of a party's stock or assets. Any attempted
assignment in violation of this provision will be void.

     20.  Trade Restrictions.  ONI will procure all import and export licenses
and permits, pay all customs charges, duty fees, value added tax (VAT), or any
similar tariffs and fees, and take all other actions required to accomplish the
lawful import and export of the Supplies.  ONI warrants that it will comply in
all respects with the export and re-export restrictions of U.S. law and
regulations for each of the Supplies shipped.

     21.  Survival Of Provisions.  Sections 9-22, inclusive, will survive any
expiration or termination of this Agreement.

     22.  Intellectual Property Ownership.  Nothing in this Agreement shall be
construed as a sale, transfer, license or assignment of the Intellectual
Property Rights of any party in and to the Supplies, Specifications, related
information and documentation, it being understood and agreed that each party
retains all rights in and to the parts of the Supplies, Specifications, related
information and documentation that it supplies.

     23.  Compliance With Laws. E-TEK will comply with all applicable laws,
ordinances, regulations and codes in the performance and execution of this
Agreement.

- END OF TEXT -

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

                      [CONFIDENTIAL TREATMENT REQUESTED]

                                   EXHIBIT A
                                   ---------

ONI will purchase Module Integration Services and Optical Components from E-TEK.
Each Module will be comprised of components, broken down into two groups:
Optical Components ("OC") and Other Components.

Purchase Commitment:

For each quarter during this Agreement beginning July 1, 2000, ONI will purchase
from E-TEK at least *                                  * of its requirements of
Module Integration Services listed in Exhibit B, and functionally similar
products. E-TEK will have reasonable audit rights, exercised not more than once
in any six-month period, to confirm that this purchase commitment is being met.
If, at the end of any quarter, E-TEK has accumulated more than two-weeks of
back-schedule versus ONI's demand, indicating their inability to supply to ONI's
required volume of Module Integrated Services, E-TEK will not have audit rights
for that quarter and ONI will not be obligated to purchase the above mentioned
volume in that quarter.

For each quarter during this Agreement beginning July 1, 2000, ONI will purchase
from E-TEK at least *                * of its requirements of OCs listed in
Exhibit B, and functionally similar products. These E-TEK OCs will be purchased
from E-TEK and supplied by ONI on consignment. All non-E-TEK OCs and all Other
Components will also be supplied by ONI on consignment. E-TEK will have
reasonable audit rights, exercised not more than once in any six-month period,
to confirm that this purchase commitment is being met. If, at the end of any
quarter, E-TEK has accumulated more than two-weeks of back-schedule versus ONI's
demand, indicating their inability to supply to ONI's required volume of OCs, E-
TEK will not have audit rights for that quarter and ONI will not be obligated to
purchase the above mentioned volume in that quarter.

These purchase commitments will be evaluated in U.S. dollars valued at E-TEK's
prices. The audits contemplated in the two preceding paragraphs will be
conducted by third parties. Those third parties will be appointed by E-TEK,
subject to ONI's consent, which will not be unreasonably withheld.

Once E-TEK's OCs supply situation and product portfolio improves and E-TEK feels
they can offer price competitive "turn-key" modules, ONI will consider
converting existing consignment business into "turn-key" business where E-TEK
directly procures all the required components and sub-assemblies and sales the
modules as products.

The terms of consignment are described in Exhibit C.

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

                                   Exhibit B
                                   ---------
                      Module Integration Services Pricing
--------------------------------------------------------------------------------
      Module Type     Assembly     Connectors     Vert. Integr.     Total
--------------------------------------------------------------------------------
           *             *             *               *              *
--------------------------------------------------------------------------------
           *             *             *               *              *
--------------------------------------------------------------------------------
           *             *             *               *              *
--------------------------------------------------------------------------------
           *             *             *               *              *
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                           Optical Component Pricing
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------
                  *                    *            *             *
--------------------------------------------------------------------------------

Long-term Price Reduction.

Notwithstanding the terms in section 4 of the Agreement, E-TEK will decrease the
prices in this Exhibit B by at *              * each year, beginning January 1,
2002. This *   * price decrease will be based, for each Module type, on the
average unit price of that type of Module sold by E-TEK to ONI in the then-
preceding *   *month period.

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.
<PAGE>

                                   Exhibit C
                                   ---------

Supply of Components by ONI:

All ONI-supplied components will be timely delivered to E-TEK on consignment,
will meet agreed-upon specifications, and will be free from defects in materials
and workmanship. E-TEK will have no liability to ONI as a result of any ONI-
supplied components that are delivered late, defective or out of spec to E-TEK.

For each quarter beginning April 1, 2000 through September 30, 2000, E-TEK will
be allowed a quarterly loss allowance of an amount equal to the greater *
* of total revenues received by E-TEK in that quarter. For each quarter
beginning October 1, 2000, that quarterly loss allowance will be an amount equal
to the greater of *                     * of total revenues received by E-TEK in
that quarter. This loss allowance is in addition to the value of ONI-components
that are delivered damaged or defective to E-TEK. If E-TEK loses or destroys
ONI-supplied components in excess of this loss allowance, E-TEK will pay or
credit ONI for such lost or destroyed components in a per unit amount to be
decided by the parties in good faith.

Physical Inventory Audit:

Physical Inventory for ONI-components consigned at E-TEK's facilities will be
performed by E-TEK and audited by ONI ("PI"), once a quarter, or more frequently
if otherwise mutually agreed upon by the parties. On a weekly basis, ONI will
provide to E-TEK the computed book value of ONI's consignment inventory then
located at E-TEK facilities based on the last PI results, adjusted by the
transactions of the then-preceding week.  Within 5 working days of E-TEK's
receipt of ONI's computed book value, E-TEK must either agree or disagree in
writing with ONI's computed book value, including details and justifications in
case of disagreement.  In order to keep the consignment inventory as accurate as
possible, both parties will act in good faith and report any discrepancies to
the other party as soon as discovered.

In the event that ONI's computed book value differs from E-TEK's estimate of
ONI's consigned inventory by more than $25,000, PI will be performed as soon as
possible, but no later than a week from such event.

-----------------------
* Confidential treatment has been requested with respect to certain portions of
this exhibit. Confidential portions have been omitted from the public filing and
have been separately filed with the Securities and Exchange Commission.

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