Document:

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                           [ Logo for Victron, Inc]

                     Manufacturing and Purchase Agreement

                                     XPEED

                                 April 1, 2000
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                     Manufacturing and Purchase Agreement

This Agreement is made the 1st day of April, 2000 ("Effective Date") between
Victron Inc., having its usual place of business at 6600 Stevenson Boulevard,
Fremont, CA 94538, herein referred to as "Manufacturer" and Xpeed, Inc. with
corporate offices located at 99 West Tasman Drive, Suite 110, San Jose, CA
95134, hereinafter referred to as "Purchaser".

1.0      SCOPE

         This Agreement anticipates the future execution of orders hereunder
         between Manufacturer and Purchaser for the purchase of Products as
         specified in the price quotes as provided by the Manufacturer.

         The provisions of this Agreement shall apply to all purchase orders
         entered into between Manufacturer and Purchaser during the term of this
         Agreement with respect to the Products which are subject to this
         Agreement unless the parties expressly agree by written modification,
         signed by both parties, that the provisions of this Agreement shall not
         apply.

         If a conflict arises between any of the terms of this Agreement and any
         purchase orders or other documents executed under this Agreement, the
         order of precedence shall be: (1) This Agreement, (2) Written terms on
         any purchase order supplied by Purchaser; and (3) other documents.

         1.1   PURCHASE ORDERS
               ---------------

               A)   All materials purchased pursuant to this Agreement shall be
                    effected by Purchaser's issuance of its purchase order and
                    shall be subject to the terms and conditions of this
                    Agreement. The purchase orders must be written and sent via
                    regular mail or via any electronic means and shall contain
                    the following information: (1) a description of materials
                    purchased including the assembly number and revision level,
                    (2) quantity of purchases, (3) routing instructions, (4)
                    delivery schedule, (5) destination and FOB point, (6) and
                    confirmation of price.

               B)   Purchaser agrees to purchase no less than the Annual Minimum
                    Committed Quantity of Products as provided in the price
                    quotes during the term of this Agreement. Release of
                    Products for production and shipment will be by Purchaser's
                    Purchase Order ("Purchase Order") issued on a monthly basis.
                    On the Effective Date, the Purchaser will give Manufacturer
                    a Purchase Order for Products to be manufactured and shipped
                    during the initial Forecast Period. Subsequent Purchase
                    Orders will be issued on a monthly basis so as to maintain a
                    firm four (4) month Release Period and twelve (12) month
                    Forecast Period at all times.

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         1.2      PRODUCT FORECAST
                  ----------------

                  It is agreed that Purchaser will provide Manufacturer, on a
                  monthly basis, a rolling twelve (12) month Product forecast by
                  the 5th of each month.

         1.3      TERM OF AGREEMENT
                  -----------------

                  This Agreement is effective as of the Effective Date for one
                  (1) year, and shall automatically be renewed at one (1) year
                  increments unless either party requests in writing, at least
                  ninety (90) days prior to the expiration of that term, that
                  this Agreement is not to be renewed.

2.0      PRICING

         2.1      The prices for Products purchased by Purchaser from
                  Manufacturer hereunder shall be as set forth on the price
                  quotes as provided by the Manufacturer. The purchase prices
                  set forth in the price quotes shall be agreed to and signed by
                  both parties.

         2.2      Purchaser agrees to enable Manufacturer achieve twelve (12)
                  inventory turns in order that Manufacturer may operate with
                  minimal interruptions in its operations and in order that
                  Manufacturer may process Purchaser's orders in a continuous
                  flow.

         2.3      Purchase Price Variance ("PPV") will be reviewed on a
                  quarterly basis. If quarterly net PPV is favorable, the
                  favorable PPV will be shared equally between Manufacturer and
                  Purchaser. Manufacturer will be responsible for net
                  unfavorable PPV, unless the variance was caused by Purchaser's
                  Engineering Change Order ("ECO") or increased order above the
                  agreed percentage. To the extent that Purchaser is responsible
                  for unfavorable PPV, Manufacturer will notify Purchaser and
                  obtain an approval by Purchaser prior to placing the order for
                  materials. On or before the 5th working day after the end of
                  each month, Manufacturer will provide a monthly preliminary
                  PPV report for the previous month. On or before the 10th
                  working day after the end of each quarter, Manufacturer will
                  provide a quarterly PPV reconciliation report for the previous
                  quarter, summarizing both favorable and unfavorable variances.
                  If quarterly net total PPV is favorable, Manufacturer will
                  issue to Purchaser a credit equal to 50% of the net favorable
                  variance.

         2.4      Standard cost for raw materials are reset on the first day of
                  each calendar quarter. Manufacturer will provide an updated
                  pricing for the following quarter at least three (3) weeks
                  prior to the end of each quarter.

         2.5      There will be an additional charge of 10% of the unit price
                  for increased order or delivery that is made within 1- 45 days
                  prior to the scheduled delivery date. However, there will be
                  no additional charge for an increased order for delivery,
                  provided that such order is made at least 45 days prior to
                  scheduled delivery date

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                  and does not exceed 20% of the original order. If an
                  additional order or expedited delivery request is made 46-90
                  days prior to the scheduled delivery date and it exceeds 20%
                  of the original order, an additional charge of 5% of the unit
                  price will apply.

         2.6      Manufacturer may impose inventory carrying charge of 1.5 % for
                  any delay or postponement in production schedule due to
                  Purchaser's change in demand and/or ECO, provided the delay or
                  postponement is more than 30 days of the original scheduled
                  delivery date.

3.0      MATERIAL PROCUREMENT

         3.1      Manufacturer is authorized to purchase materials using
                  standard purchasing practices including, but not limited to,
                  acquisition of materials recognizing Economic Order
                  Quantities, ABC buy policy, and long lead time component
                  management in order to meet the forecasted requirements of
                  Purchaser. Purchaser recognizes its financial responsibility
                  for materials purchased by Manufacturer on behalf of
                  Purchaser.

         3.2      Manufacturer will make every effort to purchase Purchaser's
                  excess inventory including orders outstanding from the
                  Purchaser's vendors, as required in the current Purchaser
                  turnkey program at Manufacturer. In that case, Purchaser will
                  act as a supplier to Manufacturer. Manufacturer will agree to
                  purchase the parts at Manufacturer's standard cost. Any excess
                  inventory that is purchased from Purchaser which has not been
                  utilized within thirty (30) days will be assessed a carrying
                  charge of 2% per month. Purchaser agrees to pay the carrying
                  charge on such excess materials until it is fully consumed. If
                  the excess materials inventory is not utilized by the end of
                  the third month, Manufacturer may request and Purchaser shall
                  purchase such inventory from Manufacturer.

         3.3      Manufacturer shall undertake reasonable efforts to cancel all
                  applicable component purchase orders and reduce component
                  inventory through return for credit programs or allocate
                  components for alternate programs if applicable.

         3.4      Manufacturer agrees to accept consigned materials from
                  Purchaser to incorporate into Purchaser's Product. The
                  ownership of all consigned material shall remain with
                  Purchaser. Purchaser must warrant the consigned material
                  against faulty workmanship (manufacturer standard warranty).
                  Purchaser will ship the consigned materials to Manufacturer
                  upon receipt of the specific requested date and quantity.
                  Purchaser will allow 1% attrition for consigned materials.

         3.5      As noted on the attached costed BOM, in the case when
                  Purchaser's standard costs are used for quotation, Purchaser
                  will help Manufacturer attain the same price from the
                  suppliers.

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4.0      CANCELLATIONS, RESCHEDULES

         4.1    CANCELLATION
                ------------

                In the event of a cancellation of a purchase order by
                Purchaser for the convenience of Purchaser, and for reasons
                other than the Manufacturer's failure to perform according to
                this Agreement, Purchaser agrees to be liable for the
                following: (i) the contract price of all finished Products in
                Manufacturer's possession which are located in the agreed upon
                storage area for Purchaser's finished Product, (ii) the cost
                of material inventory (including handling charges), whether in
                raw form or work in process, and not returnable to the vendor
                or usable for another customer, (iii) the cost of material on
                order (including handling charges) which cannot be canceled,
                and (iv) any vendor cancellation charges incurred with respect
                to material canceled or returned to the vendor.

                A)  At the time of cancellation, Purchaser will take ownership
                    of all materials defined above. Payment terms on this
                    transaction will be net 30 days after receipt of the
                    materials.

                B)  Any restocking charges incurred by Manufacturer will be
                    reviewed and approved by Purchaser prior to payment to
                    Manufacturer.

                C)  All materials transferred to Purchaser due to cancellation
                    will be subject to 6.95% handling charge.

                Manufacturer agrees, to the extent and at the times specified
                by Purchaser's Cancellation Notice, to stop all work on the
                purchase order and incur no further direct costs.

                In the event that the materials as authorized by Purchaser for
                Manufacturer to purchase are canceled or not to be used for
                whatever reason, Purchaser and Manufacturer will negotiate on
                settlement that is beneficial to both parties.

         4.2    RESCHEDULE
                ----------

                Purchaser may reschedule particular shipments of Product(s)
                (increases and decreases). Manufacturer will accommodate these
                requests on an individual basis. Such reschedules may be subject
                to additional charges as specified in Section 2.0, and are
                contingent upon capacity resources, personnel, and availability
                of material. Any rescheduled item may be invoiced at the price
                in effect at the time of shipment.

                In the event Purchaser postpones a shipment more than ninety
                (90) days past the original ship date, this reschedule
                constitutes a cancellation of that portion of the order and the
                applicable cancellation charges will apply.

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5.0       WARRANTY

          5.1  Manufacturer warrants that all Products sold hereunder will be
               free from defects in material and workmanship for a period of one
               (1) year from the date of shipment to the Purchaser, provided
               that: (1) Manufacturer is notified in writing by the Purchaser
               within thirty (30) days after Purchaser's discovery of such
               failure; or (2) Defective products are returned to the
               Manufacturer no longer than ten (10) days following the last day
               of the warranty period. The Manufacturer shall include serial
               numbers and/or date stamps, as designated by Purchaser, on each
               product to facilitate warranty tracking. Purchaser shall forward
               defective product to Manufacturer prepaid, and Manufacturer will
               return the repaired or replaced product freight prepaid by
               Manufacturer to Purchaser no later than thirty (30) days from the
               date Manufacturer receives the defective product.

          5.2  The foregoing warranty shall not be valid if the product or
               component parts have been subjected to abuse, misuse, accidental
               alteration, neglect, unauthorized repair or installation. The
               Manufacturer shall make the final determination as to the
               existence or cause of any alleged defect.

          5.3  The above warranty period shall not be extended by the repair or
               replacement of product pursuant to any of the above warranties.
               The above warranties shall apply to Purchaser, its successors,
               assigns and those who purchase or use said products. Purchaser
               shall deal directly with Manufacturer for returns and repairs.

          5.4  Except as provided herein above, the foregoing warranties are
               exclusive and in lieu of all other warranties, express or
               implied, or statutory, including the implied warranty of
               manufacturability or fitness for a particular purpose.

6.0       LIMITATION OF LIABILITY

          In no event shall either party hereto be liable for any special,
          consequential, incidental or punitive damages.

7.0       PAYMENT TERMS

          7.1  Net 30 Days from the date of invoice or sooner.

          7.2  Payment is due day 30/31 either by wire transfer or Manufacturer
               will send a driver to pick up the check.

          7.3  Manufacturer will invoice the Purchaser when the Product goes
               into Finished Goods location.

          7.4  Currency will be in U.S. dollars.

          7.5  NRE/Tooling Charges

               At the beginning of the Term, and from time to time during the
               Term, Purchaser and Manufacturer will agree on up-front, non-
               recurring engineering charges and set-up fees required to
               manufacture the Products. Purchaser will be responsible

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                   for the agreed-upon costs. Manufacturer may invoice Purchaser
                   for the NRE costs monthly as it performs the NRE.

         7.6       Manufacturer may impose a 1 1/2% finance charge per month to
                   the invoices not paid by the due date.

8.0      TITLE AND SHIPMENT

         8.1       Title to the Products and risk of loss shall pass to
                   Purchaser upon Manufacturer's delivery to the carrier,
                   regardless of any provision for payment of freight or
                   insurance of shipping documents or Xpeed Finished Goods
                   location at Victron.

         8.2       All shipments are F.O.B. Manufacturer shipping point.

9.0      DELIVERY

         9.1       PURCHASER
                   ---------

                   Product shall be delivered to Purchaser in accordance with
                   required delivery dates as specified on written purchase
                   orders. Purchase Order releases will be sent to Manufacturer
                   at least one hundred twenty (120) days in advance of the
                   specified delivery. Purchaser will also provide a twelve (12)
                   month rolling forecast each month to Manufacturer; said
                   forecast is not binding on Purchaser and is for planning
                   purposes only. Purchaser will supply a letter to Manufacturer
                   authorizing advance purchase of long-lead items.

                   In the event of cancellation, Purchaser will be liable for
                   the full material cost for any non-cancelable items under
                   this materials authorization of long-lead items.

          9.2      MANUFACTURER
                   ------------

                   Manufacturer commits to using its best efforts to meet
                   scheduled shipment dates, but reserves the right to ship up
                   to seven (7) days before or after scheduled dates with final
                   approval from Purchaser.

                   Upon learning of any potential delays, Manufacturer will
                   promptly notify Purchaser as to the possible cause and extent
                   of such delay. Manufacturer will not be held responsible for
                   shipment delays due to causes beyond Manufacturer's
                   reasonable control, such as labor disturbances, acts of
                   Purchaser, acts of God, or inability to acquire necessary
                   materials inside of lead times.

                   Upon notification from Manufacturer of delays outside the
                   normal delivery window, Purchaser reserves the right to
                   extend such delivery dates, at no liability to Purchaser.

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10.0     INSPECTION AND ACCEPTANCE

         10.1  SOURCE INSPECTION
               -----------------

               Upon request from Purchaser, Manufacturer agrees to allow
               Purchaser's source inspector to inspect and review the work
               being performed under this Agreement, including materials and
               supplies being used. However, shipments will not be delayed if
               Purchaser fails to effect such source inspection. Source
               inspection constitutes final acceptance by Purchaser.

         10.2  Manufacturer shall not be liable in any respect for any
               consequential damage arising out of any manufacturing defects,
               either latent or patent, in connection with the goods, nor any
               loss of business or profit or otherwise affixing directly or
               indirectly out of the goods manufactured by the Manufacturer
               and/or by any other claimants in connection thereto.

         10.3  APPROVED MANUFACTURERS
               ----------------------

               Approval from Purchaser must be obtained in writing for all
               manufacturers of fabricated parts. Purchaser, at its option,
               may elect to survey Manufacturer's contract supplier.

               In the course of purchasing component parts on behalf of
               Purchaser, Manufacturer must follow Purchaser's approved
               manufacturers list for all component parts. If such list is
               not available, or component(s) do(es) not appear on the list,
               Manufacturer, with consent of Purchaser, will use its best
               judgment in choosing a source for the parts.

         10.4  REJECTIONS
               ----------
               Products rejected at Purchaser Incoming QC shall be returned
               to Manufacturer within thirty (30) days from the date of
               inspection, subject to warranty period under clause 5.1 and
               source inspection condition under 10.1. Rejected Products
               shall be returned in compliance with Manufacturer's Return
               Material Authorization (RMA) procedures. RMA is to be
               requested from Manufacturer's Program Manager. Non-conforming
               report with understanding/details of failure or defects must
               be completed by Purchaser and returned with the Product(s).

               If Purchaser is to repair faulty products or sort rejected
               batches, Manufacturer shall compensate Purchaser for this
               work. Both parties shall, prior to the repairs/sort work,
               agree on the amount of compensation to be credited to
               Purchaser.

11.0     TERMINATION

         11.1  This Agreement is effective as of the Effective Date for one (1)
               year, and shall automatically be renewed at one (1) year
               increments unless either party requests

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                  in writing, at least ninety (90) days prior to the expiration
                  of that term, that this Agreement is not to be renewed.

         11.2     In the event of insolvency, bankruptcy or voluntary
                  dissolution of either party, the other party shall have the
                  option to terminate the Agreement immediately.

         11.3     If either party defaults in the performance of any material
                  provision hereunder, and if such default continues and is not
                  cured within thirty (30) days after written notice thereof by
                  the non-defaulting party, then the non-defaulting party may
                  terminate this Agreement.

         11.4     If Purchaser fails to purchase the minimum number of Products
                  specified on the price quotes or any attachments, or fails to
                  pay any amount owing when due, Manufacturer may, upon written
                  notice, immediately terminate the Agreement, without prejudice
                  to any remedies that the Manufacturer may have either at law
                  or under this Agreement prior to or consequent upon such
                  termination.

         11.5     Should Purchaser cancel any order accepted hereunder, or
                  should Manufacturer cancel any order accepted hereunder due to
                  Purchaser's nonperformance of its obligations hereunder, the
                  Purchaser shall negotiate with Manufacturer in good faith to
                  settle the account.

         11.6     If cancellation of an order is deemed to be at "convenience of
                  the Purchaser," there will be a charge equal to 6.95% of the
                  value of goods remaining to be shipped against
                  contract/purchase order, whichever is greater, unless
                  otherwise negotiated in good faith by both parties.

12.0     CONFIDENTIALITY

         Both parties acknowledge that, by reason of their relationship, they
         may have access to certain information and materials concerning the
         other's business, plans and products (including, but not limited to,
         information and materials contained in technical data provided to the
         other party) which are confidential and of substantial value to the
         other party, which value would be impaired if such information were
         disclosed to third parties. Both parties agree that they shall not use
         in any way, for their own account or the account of any third party,
         any such confidential information which is revealed to them by the
         other party hereto without written authorization from the other party.
         Each party will take every reasonable precaution to protect the
         confidentiality of such information consistent with the efforts
         exercised by it with respect to its own confidential information. Each
         party shall advise the other if it considers any particular information
         or materials to be confidential. This provision shall survive the
         termination of this Agreement.

13.0     ENGINEERING CHANGE ORDERS

         It is recognized that from time to time Manufacturer will be asked to
         implement ECOs. The following delineates the proper procedures.

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         13.1     Purchaser shall notify Manufacturer in writing of proposed
                  ECO. This notification should include the appropriate
                  documentation to support Manufacturer's investigation of the
                  impact of this proposal.

         13.2     Manufacturer shall report to Purchaser within three (3) days
                  the costs that are involved for obsolete material which are in
                  WIP, the stockroom, and/or on order. Manufacturer will review
                  the labor cost and impact for the implementation of the ECO.
                  If new material is required for the ECO, lead time and new
                  cost will be reviewed with Purchaser.

         13.3     Purchaser shall notify Manufacturer in writing as soon as
                  possible on its decision as to the ECO and the requested
                  effective dates.

14.0     FORCE MAJEUR

         Neither party to this Agreement shall be liable for its failure to
         perform any of its obligations hereunder during any period in which
         such performance is delayed due to causes beyond its reasonable
         control, including but not limited to, fire, flood, earthquake,
         embargo, strike, riot or the intervention of any government authority,
         provided that the party suffering such delay immediately notifies the
         other party of the delay. If, however, Manufacturer's performance is
         delayed for reasons defined above for a cumulative period of thirty
         (30) days or more from the date of Manufacturer's notification to
         Purchaser, then Purchaser, notwithstanding any other provision of this
         Agreement to the contrary, may terminate this Agreement without further
         notice.

         In the event of such termination, Purchaser's sole liability hereunder
         will be for the payment to Manufacturer of any balance due and owing
         for materials delivered by Manufacturer prior to Manufacturer's
         notification to Purchaser and which is subsequently accepted by
         Purchaser.

15.0     INTELLECTUAL PROPERTY INDEMNIFICATION

         Each party (the "Indemnifying Party") agrees, at its own expense, to
         defend, indemnify and hold harmless the other party (the "Indemnified
         Party") from and against any claim, suit or proceeding brought against
         Indemnified Party or its customers on the issue of infringement of any
         patent, copyright, trade secret, trademark or other intellectual
         property right by any aspect of any products or technology licensed or
         sold hereunder to the Indemnified Party, subject to the limitations
         hereinafter set forth. The Indemnifying Party shall have the sole
         control of any such action or settlement negotiations and the
         Indemnifying Party agrees to pay, subject to the limitations
         hereinafter set forth, any final judgment entered against the
         Indemnified Party or its customer on such issue in any suit or
         proceeding defended by the Indemnifying Party. The Indemnified Party
         agrees that the Indemnifying Party at its sole option shall be relieved
         of the foregoing obligations unless the Indemnified Party or its
         customer notifies the Indemnifying Party within five (5) working days
         in writing of such claim, suit or proceeding and gives the Indemnifying
         Party authority to proceed as contemplated herein, and at the
         Indemnifying Party's
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         expense gives the Indemnifying Party proper and full information and
         assistance to settle and/or defend any such claim.

16.0     OWNERSHIP OF TOOLING AND EQUIPMENT

         Manufacturer shall be responsible for the timely delivery of tooling.

         The total cost of the tooling must be agreed upon by Purchaser and
         Purchaser shall then issue purchase order to cover the cost of tooling.
         Upon payment of invoice and applicable sales tax, the tooling will
         become the property of the Purchaser. Purchaser is financially
         responsible for any changes to tooling due to ECO activity, improvement
         recommendations and normal maintenance/replacement as recommended and
         provided by Manufacturer.

         Purchaser, upon payment of invoice for tooling and applicable sales
         tax, shall own the tooling. The tooling shall be identified at the
         premises of Manufacturer as being the property of Purchaser. The
         tooling shall at all times remain the property of Purchaser and shall
         be kept identified as such with appropriate obvious designations on or
         near the respective pieces of tooling. Manufacturer shall not in any
         circumstances obtain or allow any third parties to obtain any lien or
         other rights over or in respect to any of Purchaser's tooling.

         Manufacturer will maintain and has full responsibility for the
         maintenance of tooling that is in Manufacturer's custody. Tooling shall
         be secure from interference or use by unauthorized persons. No
         unauthorized alterations will be made by Manufacturer to Purchaser's
         tooling. Manufacturer will maintain adequate insurance for the tooling
         to the satisfaction of Purchaser.

         Manufacturer will not authorize or permit the use of any of Purchaser's
         tooling by any third party, nor use Purchaser's tooling to produce any
         type of products for sale to third parties without prior written
         permission from Purchaser.

         Manufacturer shall allow reasonable access to all premises occupied or
         used by it to Purchaser or Purchaser's Agent to ascertain that the
         provisions stated in this section are being complied with and to
         arrange the removal of Purchaser's tooling. This right shall apply at
         all reasonable working times of any such factory premises.

         In the event Purchaser elects to move tooling to a competitive contract
         manufacturer, Manufacturer reserves the right to demand fair market
         value payment in advance of transfer for any tooling, test equipment or
         fixturing funded by Manufacturer in the performance of this Agreement
         and/or Purchaser's purchase order.

17.0     GENERAL

         This Agreement shall be governed by and inspected by the laws of the
         State of California, United States of America. Both parties consent to
         jurisdiction in the State of California with respect to the breach,
         interpretation or enforcement of the terms herein.

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         All disputes between Manufacturer and Purchaser, including, but not
         limited to, any disputes arising under, or relating to, this Agreement
         shall be resolved by binding arbitration conducted pursuant to the
         rules of the American Arbitration Association. All arbitration
         proceedings shall be conducted by an arbitrator selected by the
         American Arbitration Association and shall be held in Alameda or Santa
         Clara County, California. In connection therewith, Purchaser
         irrevocably submits to the jurisdiction of the courts of California for
         purposes of bringing any petition to compel arbitration or any other
         proceedings necessary to compel arbitration. Notwithstanding, and
         without waiving the foregoing, Manufacturer retains its right to seek
         provisional relief (e.g., writs of attachment) against Purchaser in any
         forum where Purchaser may possess assets.

         This Agreement contains the entire understanding between the parties
         hereto with respect to the subject matter hereof. This Agreement
         cancels and supersedes any and all other prior or contemporaneous
         agreements or understandings between the parties whether oral or
         written. If any conflict arises as to the terms of this Agreement and
         any purchase orders or documents, this Agreement shall take precedence
         over other documents.

         No modification, revision, amendment or other change to this Agreement,
         nor any waiver of any rights in respect hereto, shall be binding on
         either party unless assented to in writing and signed by an officer of
         both parties. This waiver of any breach or default hereunder shall not
         constitute the waiver of any subsequent breach or default.

         Any notice required or permitted by this Agreement shall be deemed
         given if delivered personally or if sent by prepaid mail, addressed to
         the other party at its principal business address as set forth above or
         at such other address as to which such party shall give notice
         hereunder. If by mail, delivery shall be deemed effective three (3)
         days after deposit with postal authorities. Any report under this
         Agreement is deemed given if sent via personal delivery, regular mail,
         or other electronic means, including fax or e-mail.

         Neither party shall assign this Agreement or any rights hereunder
         without the prior written consent of the other. Subject to the
         foregoing, this Agreement shall bind and inure to the benefit of the
         respective parties hereto and their heirs, personal representatives,
         successors and assigns.

         The prevailing party in any legal action brought by one party against
         the other shall be entitled, in addition to any other rights and
         remedies it may have, to reimbursement for its legal expenses incited
         thereby, including court costs and reasonable attorney's fees.

         Purchaser agrees to comply with all applicable laws and regulations.
         Purchaser understands that Manufacturer is subject to regulation by
         agencies of the U.S. Government, including the U.S. Department of
         Commerce, which prohibits export or diversion of Manufacturer's
         products to certain countries, and Purchaser agrees it will not
         knowingly assist or participate in any such diversion, or other
         violation of applicable U.S. laws and regulations. Purchaser warrants
         that it shall not sell any products to countries or to users that are
         not approved to receive classified technical equipment under applicable
         U.S. laws and regulations, and it will abide by such laws and
         regulations. Purchaser shall hold harmless and indemnify Manufacturer
         for any damages resulting to Manufacturer from breach by Purchaser of
         the conditions delineated in this paragraph.

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         If any provision(s) of this Agreement should be found invalid or
         unenforceable, such invalidity or unenforceability shall not invalidate
         or render unenforceable the entire Agreement, but rather the entire
         Agreement shall be construed as though not containing the particular
         invalid or unenforceable provision(s), and the rights and obligations
         of Manufacturer and Purchaser shall be construed and enforced
         accordingly.

                                  Signatures

              XPEED                                         Victron Inc.
  99 West Tasman Drive, Suite 110                     6600 Stevenson Boulevard
        San Jose, CA 95134                                Fremont, CA 94538

     /s/ Michael Mazzoni                                     [illegible]
------------------------------                       ---------------------------
       APPROVING OFFICER                                  APPROVING OFFICER

   Chief Financial Officer                                   VP-Finance
------------------------------                       ---------------------------
            TITLE                                               TITLE

         May 24, 2000                                         May 24, 2000
------------------------------                       ---------------------------
             DATE                                                DATE

                                      13
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                                  ATTACHMENT A

Product                                                     Annual Minimum
                                                          Committed Quantity

USB                                                             60,000
---

ETHERNET/ROUTER                                                120,000
---------------

PCI CARDS                                                      240,000

                                      14
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                                  ATTACHMENT B

                                      15<PAGE>

                                [LOGO FOR SMTC]

                              CONTRACT AGREEMENT

                                      for

                                     XPEED

                                 June 07, 2000

                                       1
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This Contract Agreement ("Agreement") is entered into this ____ day of June 2000
("Effective Date") by and between SMTC MANUFACTURING CORPORATION (SMTC), having
its place of business __________________ and XPEED Corp. having its place of
business at 99 West Tasman Drive, Suite 110, San Jose, CA 95134.

     WHEREAS SMTC is engaged, inter alia, in the contract electronic
manufacturing and related services in North America, Europe and Mexico;

     AND WHEREAS XPEED has agreed to purchase and SMTC has agreed to provide the
services and materials hereinafter described in connection with the manufacturer
of XPEED's products.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual
covenants hereinafter set forth and other good and valuable consideration, the
parties hereto agree with the other as follows:

ARTICLE 1.00 - DEFINITIONS
--------------------------

          In this Agreement, unless the context otherwise requires;

1.1       "Assembly Charges" means the charges detailed in Schedules "1-5" to
this Agreement, including without limitation charges for board level assembly,
in-circuit test, functional testing, system level assembly, system level test
packaging and shipping FOB SMTC plant of manufacturer in San Jose, California of
all finished Product;

1.2       "Forecast" means the Product projections detailed in Schedule "2" to
this Agreement which shall be updated monthly by XPEED on or before the 15th of
each month;

1.3       "Inventory" means all components that are specifically required and
purchased on behalf of XPEED for the manufacture of Products.

1.4       "Master Bill of Material" means the items detailed in Schedules "1-5"
to this Agreement;

1.5       "Product(s)" means XPEED's products which shall be manufactured by
SMTC hereunder;

1.6       "Property" means any raw material, tooling and fixtures, or test
equipment provided by XPEED to SMTC or purchased by SMTC on XPEED's behalf in
connection with the assembly of the Product by SMTC;

1.7       "Services" means the provision by SMTC of all required materials as
set out in the Master Bill of Material together with all assembly services
including but not limited to board level assembly, in-circuit and functional
testing, packaging and shipping of finished product. Services will be rendered
as required by XPEED pursuant to one or more purchase orders to be issued by it
to SMTC pursuant to the provisions of this Agreement.

1.8       "Specifications" means the written specifications that XPEED shall
provide to SMTC for each Product, and any revisions thereof, which shall
include, without limitation, the Master Bill of Material, schematics, assembly
drawings, process documentation, test specifications, current revision number,
and XPEED's approved vendor list.

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<PAGE>

ARTICLE 2.00 - SERVICES TO BE PROVIDED BY SMTC
----------------------------------------------

2.1       XPEED agrees to purchase the Services in accordance with the terms of
this Agreement. The Services shall be provided by SMTC in a professional,
workmanlike and timely manner during the term of this Agreement and any renewal
thereof.

ARTICLE 3.00 - TERM OF AGREEMENT
--------------------------------

3.1       The term of this Agreement shall be for a period of one (1) year from
the Effective Date unless terminated earlier pursuant to the provisions of
article 14.00 hereof. The term of this Agreement shall automatically be renewed
thereafter for successive terms of one (1) year terms unless or until either
Party notifies the other in writing at least 120 days prior to the expiration of
the initial term or other successive term that it does not wish to renew.

ARTICLE 4.00 - PRICING
----------------------

4.1       XPEED agrees to pay SMTC's prices then in effect for raw materials
required for the Product and all other aspects of the Services required in
connection therewith. Notwithstanding anything to the contrary in this
Agreement, unless otherwise agreed by the parties in writing, all prices quoted
by SMTC shall remain in effect for a period of three (3) months from the date of
written quotation, with update pricing provided to XPEED on a quarterly basis.
Such prices shall be exclusive of all applicable taxes. In the event that there
is a change in market conditions or pricing from suppliers in connection with
any raw materials to be purchased by SMTC, then either Party may request
amendment to any quoted price by giving written notice to the other Party
detailing the specific reasons for the requested pricing change. The Parties
shall then use their best efforts to attempt to negotiate, in good faith, any
required amendment to any such initially quoted price(s) to fairly reflect the
change in market conditions. If such an amendment is negotiated by the Parties,
an appropriate adjustment shall be made to the price for each unit of product
incorporating any devices subject to the price change from initial quoted
prices.

4.2       Terms of Payment are Net 30 days from date of invoice.

4.3       In the event that XPEED introduces or requires changes to the Product,
and if any such change results in an increase/decrease in the price of, or time
required for, the performance of any aspect of the work covered by this
Agreement, the Parties will negotiate, in good faith, an appropriate adjustment
to the contract pricing and or delivery schedule to reflect such changes. XPEED
shall be responsible for all costs related to obsolescence and additional set-up
costs relating to the any Product changes requested by XPEED; provided, however,
SMTC will make every effort to minimize such costs.

4.4       The Parties agree that SMTC allocates a material scrap/shrinkage
factor of 3% of the unit material cost. In the event that XPEED's design of
material components and/or required procurement of components from XPEED's
approved vendor list directly results in the normal yield characteristics of a
component and/or assembly process not being met, SMTC shall have the right to
invoice XPEED for any scrap and/or shrinkage cost in excess of the 1% level
and/or any additional process assembly costs, provided that (1) SMTC has
                                              -------- ----
provided XPEED with written reports indicating SMTC's detection of the fault(s)
which is attributable to XPEED's design and (2) SMTC has used its best efforts
to reduce material scrap and shrinkage to less than 3%.

4.5       It is understood and agreed that SMTC's quoted manufacturing charge is
based on standard deliveries of components available to the electronics
industry. In the event that certain components are on allocation or in the event
that additional costs are incurred in order to procure

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<PAGE>

components to meet changes in XPEED's forecast that are beyond the agreed upon
allowable variance in scheduling, then such additional costs shall be invoiced
to XPEED. In addition, XPEED shall be responsible for any additional costs
resulting for engineering changes made by XPEED, replacement of suppliers by
XPEED or special transportation of Products requested by XPEED, including
without limitation, all applicable freight charges, duties, taxes and brokerage
fees, and XPEED shall indemnify and save harmless SMTC in connection with such
costs. SMTC shall keep XPEED advised of any additional costs that may arise from
the occurrence of such events and shall obtain XPEED's written approval prior to
incurring any such additional costs.

4.6       Both SMTC and XPEED shall proactively plan and implement cost
reduction programs, including cost reductions to the raw material, product or
assembly processes. XPEED will receive one hundred percent (100%) of all
demonstrated cost reductions initiated by XPEED in the form of an immediate
reduction in the pricing charged to XPEED for SMTC's Services. Upon
implementation of any cost reductions which have been initiated by SMTC and
approved by XPEED, SMTC will receive fifty percent (50%) of the demonstrated
cost reduction for a period of three (3) months and the other fifty percent
(50%) of the demonstrated cost reduction will be applied as a reduction to the
amount invoiced to XPEED for SMTC's Services. After such three (3) month period,
one hundred percent (100%) of the cost reduction will be applied as a reduction
to the pricing charged to XPEED for SMTC's Services. XPEED will own all right,
title, and interest to any Product designs or Specifications regardless of
whether they were initiated or conceived by XPEED or SMTC. SMTC will execute any
additional documentation reasonably necessary for XPEED to secure and maintain
intellectual property rights in such Product designs or Specifications.

ARTICLE 5.00 - PROTECTION OF PROPRIETARY TECHNOLOGY AND TRADEMARKS; LICENSE.
---------------------------------------------------------------------------

5.1       SMTC recognizes and agrees that the Products may incorporate certain
proprietary information developed and owned or licensed by XPEED, including,
without limitation, software, source and object codes ("Product Technology").
All Product Technology is and shall remain the property of XPEED. SMTC
undertakes that it will not, directly or indirectly, manufacture, process,
label, package, supply, or sell, any Product, or other products utilizing
Product Technology, except as contemplated by the terms of this Agreement. SMTC
further agrees not to carry on or engage in, directly or indirectly, on its own
or through any individual, partnership, company, association, or entity, any
business or other activity utilizing Product Technology.

5.2       For each Product, subject to the terms and conditions of this
Agreement, XPEED grants SMTC a non-transferable, non-exclusive, royalty-free
license to use the Specifications solely to manufacture the Products and
otherwise perform its obligations hereunder.

ARTICLE 6.00 - OWNERSHIP OF PROPERTY
------------------------------------

6.1       The Parties acknowledge and agree that the Property is owned by XPEED
and shall not be disposed of in any way without XPEED prior written
authorization. SMTC agrees to act in a commercially reasonable and prudent
manner in its handling and storage of XPEED Property so as to minimize any loss
or damage thereto. SMTC further agrees to segregate the Property from other
materials in SMTC's possession and ensure that at all times the Property is
clearly identified as being the Property of XPEED. The Parties acknowledge and
agree that the Property consigned by XPEED to SMTC for the purpose of SMTC
fulfilling the Services is to be independently insured by XPEED in the event
that SMTC's general insurance does not cover a claim for any reason and/or
circumstance.

6.2       XPEED shall have the right upon reasonable notice to inspect the
premises of SMTC to ensure that the requirements of this Agreement, including,
without limitation, paragraph 5.1 above, are being complied with by SMTC at all
times.

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<PAGE>

ARTICLE 7.00 - LIABILITY FOR INVENTORY
--------------------------------------

7.1       The inventory held by SMTC on behalf of XPEED to meet the finished
product volumes contained in the forecast, that are defined as customer specific
or Non-Cancelable or Non-Returnable (NCNR), shall be XPEED's responsibility in
the event of any variation or termination of this Agreement. XPEED further
agrees that it shall be responsible for all inventory that the Parties mutually
agree in writing to designate as non-cancellable and non-returnable as listed in
Schedule 4. XPEED also acknowledges and agrees that at the end of the life of a
Product or upon termination of this Agreement (other than by XPEED pursuant to
section 14.1), it shall be liable that for any inventory which the Parties agree
should be deemed excess and obsolete due to Minimum Purchase Quantities (MPQ)
set by various component suppliers or due to the requirements necessary for
SMTC's automated manufacturing processes. A list detailing the NCNR, obsolete,
excess and/or customer specific material will be provided to XPEED by SMTC on a
monthly basis. SMTC will at all times try to minimize the level of Inventory
necessary to support the manufacture of the Products. SMTC shall obtain XPEED's
written authorization prior to making any extraordinary purchases which SMTC
believes is necessary (i.e., long lead time, allocation, supplier imposed,
etc.).

ARTICLE 8.00 - VARIATIONS TO MASTER BILL OF MATERIAL
----------------------------------------------------

8.1       The parties agree that the parts and materials on the Master Bill of
Materials list shall be subject to amendment from time to time as a result of
engineering changes, introduction of new designs and obsolescence of prior
designs as determined by XPEED and that SMTC only manufacture the Products using
components obtained from vendors included on the XPEED approved vendor list.

ARTICLE 9.00 - LIMITED WARRANTY AND LIMITATIONS OF DAMAGES
----------------------------------------------------------

9.1       SMTC warrants that the Products will conform to XPEED's applicable
Specifications and will be free from defects in workmanship for a period of one
(1) year from the date of delivery to XPEED. Components and materials are
warranted for one hundred (100) days or to the same extent that the original
manufacturer warrants the materials, whichever is longer. This warranty does not
apply to (a) materials consigned or supplied by XPEED to SMTC; (b) defects
resulting from XPEED's design of the Products; or (c) Product that has been
abused, damaged, altered or misused by any person or entity after title passes
to XPEED. Notwithstanding anything else in this Agreement, SMTC assumes no
liability for or obligation related to the performance, accuracy,
specifications, failure to meet specifications or defects of or due to tooling,
designs or instructions produced or supplied by XPEED. Upon any failure of a
Product to comply with the above warranty, SMTC's sole obligation, and XPEED's
sole remedy, is for SMTC, at its option, to promptly repair or replace such unit
and return it to XPEED freight pre-paid. In order to obtain performance under
this warranty, the XPEED shall deliver the Product to SMTC at SMTC's expense.
SMTC shall be responsible for any delivery costs associated with the return of
the Product from XPEED's location or XPEED's end customer's location. Under this
warranty, SMTC will make every effort to provide XPEED with repaired or replaced
Product within five (5) days of receipt of a defective Product and a failure
analysis report within ten (10) days of receipt of a defective Product.

9.2       SMTC shall provide board level assembly and testing will be performed
by SMTC in accordance with specifications and procedures to be agreed upon by
the Parties. SMTC further warrants that it shall comply with all applicable laws
and regulations in providing the Services.

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<PAGE>

9.3       SMTC represents and warrants that it will manufacture the Products in
ISO 9002 certified facilities and notify XPEED should there be any change in the
certification status. The parties shall identify a standard quality reporting
method of quality data and process response mechanisms which will be provided to
XPEED on an ongoing basis.

9.4       SMTC represents and warrants that it has been granted or issued all
permits required for the storage, handling, and disposal of all materials or
hazardous waste used by SMTC in the performance of this Agreement. SMTC has
implemented programs necessary to monitor and maintain all required licenses and
permits and to prevent releases of the material to the environment. SMTC's
employees shall have been trained to properly, safely, and legally (in
accordance with all applicable local, state, and federal laws and regulations)
handle hazardous material and wastes. SMTC shall notify XPEED in writing,
immediately upon discovery of any regulatory action taken or initiated against
SMTC, whether or not such action relates to or arises out of this Agreement,
that may impact SMTC's ability to deliver the Products. Regulatory compliance
and management of SMTC's facilities and processes is strictly the responsibility
of SMTC and XPEED has no express or implied responsibility for the same.

9.5       It is understood by and between the parties that there are no express
warranties in this Agreement other than the warranties provided in Section 8.1,
above. SMTC MAKES NO WARRANTY OF MERCHANTABILITY OF THE PRODUCTS OR OF THE
FITNESS OF THE PRODUCTS FOR ANY PARTICULAR PURPOSE.

9.6       UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR
ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR SPECIAL DAMAGES ARISING
OUT OF A BREACH OF THIS AGREEMENT OR ANY WARRANTY, EXPRESS OR IMPLIED UNDER THIS
AGREEMENT.

ARTICLE 10.00 - SCHEDULE OF DELIVERIES / ORDER REQUIREMENTS / FORECAST
----------------------------------------------------------------------

10.1      During the term of this Agreement, XPEED provide sixty (60) days of
          releases in the form of Purchase Orders on or prior to the fifteenth
          (15/th/) day of each month, which will set forth specifics as to
          required quantities and delivery dates. Upon acceptance and
          acknowledgement of XPEED's Purchase Orders by SMTC, SMTC will be
          obligated to manufacture and deliver to XPEED, and XPEED will be
          firmly and irrevocably obligated to buy from SMTC the Products set
          forth in the Purchase Orders. Purchase order and Forecast revisions
          are subject to the Time Fences/Allowable Quantity Variations
          identified in the chart below. Upon acceptance and acknowledgment of
          XPEED's Purchase Orders by SMTC, XPEED will be firmly and irrevocably
          obligated to buy from SMTC and SMTC will be obligated to manufacture
          and deliver to XPEED the Products set forth in the Purchase Orders.
          Purchase Order and Forecast revisions are subject to the Time
          Fences/Allowable Quantity Variations identified in the chart below. At
          the completion of manufacturing the assembly SMTC will hold finished
          goods for no more than fifteen (15) days beyond a schedule that is
          within the time fences that are non-cancelable. SMTC will then either
          invoice XPEED and ship the goods or will make arrangements to invoice
          and store/hold the finished goods on behalf of XPEED

10.2      On or prior to the fifteenth (15th) day of each month, XPEED will
          additionally provide a rolling Forecast of its estimated monthly
          requirements covering the six (6) months beyond the issued Purchase
          Orders.

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<PAGE>

ALLOWABLE VARIANCE FROM FORECAST

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Month after Date of       Allowable              % Cancellable           % Reschedule           Maximum
Forecast                  Quantity Increase                                                     Reschedule Date
--------------------------------------------------------------------------------------------------------------------
<S>                       <C>                    <C>                     <C>                    <C>
One                       20%                    0%                      0%                     0
--------------------------------------------------------------------------------------------------------------------
Two                       50%                    25%                     50%                    30 days
--------------------------------------------------------------------------------------------------------------------
Three                     50%                    50%                     50%                    60 days
--------------------------------------------------------------------------------------------------------------------
Four                      75%                    50%                     75%                    60 days
--------------------------------------------------------------------------------------------------------------------
Five                      100%                   100%                    100%
--------------------------------------------------------------------------------------------------------------------
Six                       100%                   100%                    100%
--------------------------------------------------------------------------------------------------------------------
</TABLE>

In the event that XPEED requires Product quantity increases to the purchase
order schedule, SMTC shall use its best efforts to procure/pull-in deliveries of
components to meet the increased quantity demands. SMTC will manage materials in
a manner which would enable SMTC to support a ten percent (10%)) to twenty
percent (20%) upside in XPEED's forecast.

10.2      In the event that XPEED issues any Engineering Change Orders (ECO) or
any similar orders or notices requiring any change in the Products listed in
XPEED's purchase orders that effects the agreed upon delivery date, SMTC shall
have the right to invoice and ship or invoice and hold the finished goods, prior
to completion of the requested ECO or change notices, fifteen (15) days after
the original schedule date. All assembled and work in process product requiring
treatment by this ECO will be considered rework. Any rework charges will be
negotiated between XPEED and SMTC and executed upon receipt of a rework purchase
order from XPEED.

ARTICLE 11.00 - TECHNICAL INFORMATION AND ASSISTANCE
----------------------------------------------------

11.1      XPEED agrees to provide SMTC with relevant information concerning
XPEED's current financial information upon request; provided that SMTC shall not
make such a request more than once per calendar quarter. SMTC is to use this
information for the sole purpose of an on-going financial review of the
operations of XPEED and cannot convey directly or indirectly any of this
information without the approval of XPEED.

11.2      The Parties agree to mutually advise each other from time to time
without charge with respect to all technical information relating to the
Product.

ARTICLE 11.00 - ASSIGNMENT
--------------------------

11.1      This Agreement shall not be assigned by either Party without first
receiving the written consent of the other Party, which shall not be
unreasonably withheld.

ARTICLE 12.00 - INDEMNIFICATION
-------------------------------

12.1      Patents, Copyrights, Trade Secrets, Other Proprietary Rights.
          ------------------------------------------------------------

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(a)       SMTC shall use commercially reasonable efforts to procure from vendors
of components and materials indemnity protection extending to XPEED, including
the defense of actions and payment of all claims, costs, damages, judgments and
reasonable attorneys' fees resulting from or arising out of any alleged and/or
actual infringement or other violation of any patents, patent rights,
trademarks, trademark rights, trade names, trade name rights, copyrights, trade
secrets, proprietary rights and processes or other such rights with respect to
all components and materials procured by SMTC under this Agreement.

(b)       In the event that SMTC is unable to secure the indemnity contemplated
under Section 12.1 for any part selected by SMTC, SMTC shall notify XPEED and
allow XPEED to participate in discussions with the part supplier in question
with regard to securing such indemnification. If the indemnification is still
not available after this process, XPEED may then approve the part without
indemnification or ask that SMTC source the part elsewhere. XPEED will be
responsible for any change in price of the part in question.

12.2      Product Liability.
          -----------------

(a)       SMTC Indemnification. SMTC hereby accepts responsibility for, and
shall defend, indemnify, and hold harmless XPEED, its officers, directors,
employees, agents, and shareholders against, any liabilities (including, without
limitation, costs and expenses of litigation, reasonable attorneys' fees,
settlements, and damages) arising from (a) workmanship defects in the Products
supplied by SMTC and (b) SMTC's failure to manufacture the Products in
accordance with Specifications. XPEED shall promptly notify SMTC of any claims
related to such indemnification and no such claim shall be settled without
SMTC's prior written consent.

(b)       XPEED Indemnification. XPEED hereby accepts responsibility for, and
shall defend, indemnify, and hold harmless SMTC, its officers, directors,
employees, agents, and shareholders against, any liabilities (including, without
limitation, costs and expenses of litigation, reasonable attorneys' fees,
settlements, and damages) arising from defects in the Specifications or the
design of the Products. SMTC shall promptly notify XPEED of any claims related
to such indemnification and no such claim shall be settled without XPEED's prior
written consent.

ARTICLE 13.00 - CONFIDENTIALITY
-------------------------------

13.1      Confidential Information. Information of XPEED including, but not
          ------------------------
limited to, trade secrets, know-how, inventions (whether patentable or not),
ideas, improvements, materials, data, specifications, drawings, processes,
results, and formulae and all other business, technical and financial
information that is deemed confidential by XPEED (Confidential Information). In
particular, but without limitation, the Specifications and the Product
components delivered to SMTC by XPEED shall be the Confidential Information of
XPEED. SMTC shall, at all times, both during the term of this Agreement and
thereafter for a period of three (3) years, keep in confidence all of XPEED's
Confidential Information received by it. SMTC shall not use the Confidential
Information of XPEED other than as expressly permitted under the terms of this
Agreement or by a separate written agreement. SMTC shall take reasonable steps
to prevent unauthorized disclosure or use of XPEED's Confidential Information
and to prevent it from falling into the public domain or into the possession of
unauthorized persons. SMTC shall not disclose Confidential Information of XPEED
to any person or entity other than its officers, employees, consultants and
subsidiaries who need access to such Confidential Information in order to
perform its obligations under this Agreement and who have entered into written
confidentiality agreements which protect the Confidential Information of XPEED.

13.2      Exceptions to Confidential Information. Confidential Information will
          --------------------------------------
not include any information that: (a) becomes known to the general public
without fault or breach on the part of SMTC; (b) XPEED customarily provides to
others without restriction on disclosure; (c) SMTC obtains from a third

                                       8
<PAGE>

party without breach of a nondisclosure obligation and without restriction on
disclosure; (d) is already known to SMTC prior to its disclosure XPEED; or (e)
must be disclosed by SMTC by statutory or regulatory provision, or court order,
provided, however, that SMTC provides notice thereof to XPEED, together with the
statutory or regulatory provision or court order on which such disclosure is
based, as soon as practicable prior to such disclosure.

ARTICLE 14.00 - RIGHT TO TERMINATE
----------------------------------

14.1      In the event that either Party is in breach of any of its material
obligations under this Agreement then the other Party may give written notice of
such breach to the defaulting Party and request remedy of same. If the Party in
breach fails to remedy said breach within thirty (30) days after the date of
notice then this Agreement may be terminated immediately by written notice of
termination given by the complaining Party. Notwithstanding the foregoing, any
breach of Article 14 ("Confidentiality") above will be deemed a material breach
of this Agreement that cannot be cured and the non-breaching Party shall have
the right to terminate this Agreement immediately by providing written notice of
termination to the other Party.

14.2      This Agreement may also be terminated by either Party upon one hundred
and twenty (120) days written notice to the other.

14.3      Notwithstanding the provisions contained in sections 14.1 and 14.2
either Party may terminate this Agreement by written notice to take effect
immediately upon receipt thereof by the other Party in the event that the Party
receiving notice has become bankrupt or insolvent or has made an assignment for
the benefit of creditors, or a receiver is appointed for its business or a
voluntary or involuntary petition of bankruptcy is filed, or proceedings for the
reorganization of the Party are instituted; or has attempted to assign any part
of the rights granted to it under this Agreement without prior written consent
of the other Party.

ARTICLE 15.00 - EFFECT OF TERMINATION
-------------------------------------

15.1      Upon termination of this Agreement:

(a)       SMTC shall fulfill its obligations as contained in paragraphs 15.1
(b), (c) and (d) and XPEED shall then immediately assume responsibility for the
payment of all XPEED material, work in process, finished Product and all other
outstanding XPEED inventory then being held by SMTC, including the inventory
being held pursuant to section 6.1 hereof together with all other monies due and
owing pursuant to this Agreement;

(b)       The Parties shall facilitate the transfer of all of XPEED Property
then being held by SMTC to XPEED as contained in paragraph 15.1 (a) including
all documentation relating thereto;

(c)       SMTC shall immediately return all original design drawings, copies of
drawings, Specifications, written descriptions, and other recorded technical
information furnished to SMTC by XPEED pursuant to this Agreement; and

(d)       Each Party shall cease to use the documentation and information
provided to it by the other Party pursuant to the provisions of this Agreement.

                                       9
<PAGE>

15.2      The following Articles shall survive termination of this Agreement:
5.1, .6.1,12.1, 12.2, 13.1, 13.2, 15.1, 15.2 and 18.1-18.8.

ARTICLE 16.00 - FORCE MAJEURE
-----------------------------

16.1      None of the Parties shall be liable for any failure or omission in the
performance of any provision of this Agreement, if failure is caused by or shall
arise directly or indirectly, from acts of God, Government Orders, legislation,
or regulations, embargoes, fire, storm, floods, strikes, labor trouble, wars,
riots, failure of carriers or suppliers to transport or furnish materials or
other contingencies beyond reasonable control of the Parties. SMTC shall,
however, give prompt notice to XPEED in the event of the occurrence of any of
the above contingencies that SMTC expects will delay the delivery of the
Services or any part thereof in a timely manner. Any notice from SMTC shall
include the best estimate of SMTC as to the expected period of delay. Upon
receipt of such notice or upon XPEED becoming aware of the occurrence of any of
the above contingencies which XPEED reasonably expects will delay the delivery
of the Services or any part thereof in a timely manner, XPEED shall be free to
obtain some or all of the Services without delay and without penalty that are
expected to be the subject of delay from other suppliers during the said period
notwithstanding its obligations arising pursuant to this Agreement. In such
circumstances, SMTC shall co-operate with XPEED and any new suppliers to achieve
a smooth, effective and expeditious transition and SMTC shall deliver any
Property as directed by XPEED during the period of delay. SMTC shall be entitled
to give notice to XPEED following resolution of any outstanding difficulties
resulting from any such contingency in respect of which it has given notice, or
that XPEED became aware of, that SMTC is then in a position to provide the
affected Services in a timely manner in accordance with the provisions of this
Agreement. In any event, XPEED shall then deal with SMTC in connection with the
provision of the affected Services commencing on the (30th) day following
receipt of such notice from SMTC.

ARTICLE 17.00 - ARBITRATION
---------------------------

Except matters relating to collection of monies owed by either party or the
other, pricing of items, or compliance with specifications, Buyer and Supplier
agree that any dispute involving any matter arising under the termination of
this Agreement shall be resolved by biding arbitration held in Santa Clara
County, California, in accordance with the rules of the American Arbitration
Association. Such arbitration shall commence within six (6) months of said
dispute. To the extent that the dispute is not subject to resolution through
arbitration, Buyer and Supplier hereby agree that a lawsuit may only be brought
in the appropriate Federal or California State Court located in Santa Clara
County, California, having jurisdiction over the subject matter of the dispute
or matter. Buyer and Supplier hereby consent to the exercise of personal
jurisdiction by any court with respect to any such proceeding.

ARTICLE 18.00 - NOTICE
----------------------

17.1      Any notice required or permitted to be given for the purposes of this
Agreement shall be in writing and shall be sufficiently given if personally
delivered to an officer of the Party notice is being given to or sent by
facsimile, courier or registered letter, postage prepaid and:

      (a) if to SMTC, addressed to it at:

                  SMTC Manufacturing Corporation
                  2302 Trade Zone Blvd

                                       10
<PAGE>

                  San Jose, CA 95131
                  facsimile - (408) 934-7101

      (b) if to XPEED, addressed to it at:

                  XPEED
                  99 West Tasman Drive, Suite 110
                  San Jose, CA 95134
                  Facsimile - (408) 473-8808

and such notice shall be deemed to have been given on the day it was personally
delivered or facsimiled or on the fifth business day following which it was
mailed; provided, however, if at the time of mailing of any such notice
thereafter prior to delivery, normal postal service is interrupted through
strikes or other similar irregularities then such notice shall be deemed to have
been received on the fifth day following the resumption of normal mail service.
Any Party may from time to time change its address for the purpose of receipt of
any such notices by giving written notice of such change to the other Party in
the manner described.

ARTICLE 18.00 - GENERAL PROVISIONS
----------------------------------

18.1      Nothing contained in this Agreement shall constitute a joint venture
or partnership between the Parties hereto.

18.2      Time shall be the essence of this Agreement and of every part thereof.

18.3      Whenever the singular or masculine is used in this Agreement they
shall mean and include the plural, neutral and feminine or vice versa as the
context of this Agreement shall require.

18.4      The headings and marginal descriptions of all articles herein are
inserted for convenience of reference only and shall not affect the construction
or interpretation of this Agreement.

18.5      The Parties hereto shall and will execute such further and other
papers and documents and do and perform and cause to be done and performed such
further acts and things as necessary in order to give full effect to this
Agreement and to every part thereof.

18.6      This Agreement shall be governed by and construed in accordance with
the laws of the State of California. The Parties agree that the courts of
California shall have sole and exclusive judicial jurisdiction to determine any
matter arising under this Agreement that cannot be resolved by the Parties
directly. It is agreed and understood that any purchase order or other document
related to the Services issued by XPEED to SMTC during the term of this
Agreement shall be subject to and governed by the terms of this Agreement.

18.7      This Agreement constitutes the entire agreement between the Parties
and except as herein stated and in the instruments and documents to be executed
and delivered pursuant hereto, contains all the representations and warranties
of the respective Parties. There are no verbal statements, representations,
warranties and undertakings or agreements between the Parties. This Agreement
may not be amended or modified in any respect except by written instrument
signed by the Parties.

18.8      This Agreement shall be binding upon and shall ensure to the benefit
of the Parties hereto, their permitted successors and assigns.

IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of the
day, month and years set out below.

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                           SMTC MANUFACTURING CORPORATION
                           ------------------------------

                           Per:

                                                [illegible]
                                    -----------------------------------
                                        (Authorized Signing Officer)
                                            7th day of June, 2000

                           XPEED Corp.
                           ----------

                           Per:

                                            /s/ Michael Mazzoni
                                    ------------------------------------
                                        (Authorized Signing Officer)
                                            7th day of June, 2000

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