Document:

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                                                                   EXHIBIT 10.13

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

                             RESTATED AND AMENDED

                        INTELLECTUAL PROPERTY AGREEMENT

                                BY AND BETWEEN;

                      BELL COMMUNICATIONS RESEARCH, INC.

                                 ("BELLCORE")

                                    - and -

                                 TELLIUM, INC.

                                ("CORPORATION")

____________________________________________________________________

                             DATED: December 1998

____________________________________________________________________
<PAGE>

                        INTELLECTUAL PROPERTY AGREEMENT
                        -------------------------------

     This Agreement is effective the 8th day of May, 1997 ("Effective Date") by
and between Bell Communications Research Inc., a Delaware corporation having an
office and place of business at 445 South Street, Morristown, New Jersey 07960-
6438 ("Bellcore") and Tellium, Inc., a Delaware corporation having an office and
place of business at 2 Crescent Place, Building C, Oceanport NJ 07757, and
successor in interest to MWD, Inc. (the "Corporation"), Bellcore and the
Corporation being referred to herein individually as a "Party" and collectively
as the "Parties". This Agreement replaces the Intellectual Property Agreement
dated May 8, 1997 ("IPA").

          WHEREAS, Bellcore, Ortel Corporation and Oak Investment Partners and
others entered a series of agreements dated May 8, 1997, including a Stock
Purchase and Contribution Agreement (hereinafter the "Contribution Agreement")
and a Stockholders Agreement and other related agreements for the formation and
capitalization of the Corporation;

          WHEREAS, the Corporation's business entails developing, manufacturing,
marketing and distributing products and systems using Wavelength Division
Multiplexing ("WDM") technology;

          WHEREAS, Bellcore has contributed certain intellectual property rights
to the Corporation related to WDM technology heretofore developed by Bellcore in
exchange for capital stock of the Corporation;

          WHEREAS, under the IPA, the Parties exchanged certain rights and
obligations relating to the intellectual property in the WDM technology;

          WHEREAS, the Parties desire to amend and restate the terms and
obligations of the original IPA and to further provide the Corporation
additional rights to Bellcore intellectual property to assist the Corporation in
conducting its business as set forth in its business plan.

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          NOW THEREFORE, FOR AND IN CONSIDERATION OF the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agrees as follows:

                            ARTICLE I - DEFINITIONS
As used herein, the following terms shall have the indicated meaning:

"Affiliate" - means, with respect to any party, an entity that owns or controls,
     is owned or controlled by, or is owned by any entity owning or controlling,
     such party in question at the time in question. For purposes of this
     definition, ownership or control of a corporation or similar entity
     requires the direct or indirect ownership of stock or other interest
     representing at least two-thirds (2/3) of the voting power for the election
     or appointment of directors of such corporation or entity.

"Bellcore Retained WDM Activity" - means the design, development, maintenance
     and licensing of network software and network operations systems software
     in the WDM Field and related consulting services.

"Bellcore Patents" - means all patents granted on or before the Effective Date,
     all patent applications pending on or before the Effective date, all
     continuations, divisions, and continuations-in-part of such patent
     applications, all patents issuing on any of the foregoing applications, all
     reissues of any of the foregoing patents and all foreign counterparts to
     any of the foregoing patent applications and patents, to the extent owned
     by, assigned to, subject to an obligation to assign to, or for which
     Bellcore has the right to enforce or license without the payment of
     royalties or fees to third parties.

"Corporation Products" - means any one or more of the products described in the
     attached Exhibit G, the components thereof, and any combination of the
     foregoing, which are made by or for the Corporation and/or its successors
     in interest.

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"Corporation Services" - means any one or more of the services described in the
     attached Exhibit G, or any combination thereof, that is performed by
     Corporation, its successors in interest, and/or any of their
     subcontractors.

"Computer Software" - means the computer software (including object code, source
     code and related documentation) listed on Schedule III as attached to the
     Stock Purchase and Contribution Agreement ("Contribution Agreement")
     between the Parties.

"Documentation" - means technical memoranda, reports, laboratory notebooks,
     manuals, engineering documentation, designs, specifications, and process
     instructions listed on Schedule IV as attached to the Contribution
     Agreement.

"Group A Patents" - Group A patents are a category of patents identified as
     being required for and solely applicable in the WDM Hardware Field and
     shall mean the patents, patent applications and invention disclosures
     listed in Exhibit A hereto, all patent applications filed based on any such
     disclosures, all divisions, continuations and continuations-in-part of such
     patent applications, all patents issuing on any of the foregoing
     applications, all re-issues of any of the foregoing patents and all foreign
     counterparts to any of the foregoing patent applications and patents.

"Group B Patents" - Group B patents are a category of patents identified as
     being required for and applicable in both the WDM Hardware Field and
     elsewhere in the WDM Field and shall mean the patents, patent applications
     and invention disclosures listed in Exhibit B hereto, all patent
     applications filed based on any such disclosures, all divisions,
     continuations and continuations-in-part of such patent applications, all
     patents issuing on any of the foregoing applications, all re-issues of any
     of the foregoing patents and all foreign counterparts to any of the
     foregoing patent applications and patents.

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"Group C Patents" - Group C patents are a category of patents identified as
     being applicable in the WDM Field, but not meeting the above-stated
     criteria of Group A Patents or Group B Patents and shall mean the patents,
     patent applications and invention disclosures listed in Exhibit C hereto,
     all patent applications filed based on any such disclosures, all divisions,
     continuations and continuations-in-part of such patent applications, all
     patents issuing on any of the foregoing applications, all re-issues of any
     of the foregoing patents and all foreign counterparts to any of the
     foregoing patent applications and patents..

"Hardware" - means active and passive devices, components (sub-assemblies),
     network elements (stand-alone functional communications units) for use in
     the WDM Field, whether or not including embedded control software. Hardware
     shall include, but not be limited to, laser arrays, receiver arrays,
     add/drop multiplexers, terminal multiplexers, Multiwavelength optical cross
     connects and wavelength interchange optical cross connects.

"Manufacture" -- shall be defined as contemplated and interpreted under the
     Telecommunications Act of 1996.

"Non-Assertion Technology" - means physical and datalink layer functionality,
     structure or apparatus, any hardware control functionality, structure or
     apparatus, any software control functionality, structure or apparatus, any
     monitoring hardware functionality, structure or apparatus, any monitoring
     software functionality, structure or apparatus, any power supply hardware
     functionality, structure or apparatus, any power supply software
     functionality, structure or apparatus, any network element management
     software functionality, structure or apparatus, within the WDM Field. Non-
     Assertion Technology shall expressly include optical service channel
     functionality, structure or apparatus and switching functionality,
     structure or apparatus of WDM optical add/drop multiplexers and

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     optical cross connects. Non-Assertion Technology shall not include
     switching functionality, structure or apparatus, that is performed in
     response to the information content of transmission signals (excluding
     optical service channel signals) switched by such WDM optical add/drop
     multiplexers and optical cross connects.

"Technical Information" - means (i) the technical information and know-how known
     to the Transferred Employees, (ii) the Computer Software, and (iii) the
     Documentation, all in their current form as of May 8, 1997.-

"Transferred Employees" - means the employees of the Corporation identified at
     Schedule V as attached to the Contribution Agreement.

"WDM Field" - means the optical wavelength division multiplexing field.

"WDM Hardware Field" - means the design, development, manufacture and sale of
     Hardware but excluding Bellcore Retained WDM Activity.

           ARTICLE II - THE TRANSFER OF INTELLECTUAL PROPERTY RIGHTS

2.1  Patents - Assignment
     --------------------

     Bellcore hereby assigns to the Corporation, the entire right, title and
interest in and to the Group A Patents, including the right to sue and recover
for past infringement thereof, but subject to (a) the pre-existing Bellcore
licenses or immunities from suit relating to such patents listed in Exhibit D
hereto, and (b) a retained royalty-free, irrevocable, license for Bellcore and
its Affiliates (i) to perform research and development activities for themselves
and others, subject to the observance of the obligations of Section 4.2 hereof
regarding Technical Information, (ii) to make, have made, use, import, license,
sell and offer for license or sale computer software of any

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type, (iii) to test and evaluate products of itself and others, (iv) to perform
any activities in connection with the development or formulation of
requirements, which include criteria for assessing device, product, system,
network, architecture and process performance, interoperability and operation
("Requirements"), (v) to design, develop, maintain and license network
management systems and operations systems software in the WDM Field, design
network-level architecture, perform systems integration (creating systems
solutions by acquiring and integrating network elements and other
telecommunications units which may include software and operations and
maintenance services), and perform consulting services relating thereto and (vi)
to perform any other specified activities to be agreed upon in writing by the
Parties.

2.2  Patents - License
     -----------------

     (a)  Bellcore hereby grants to the Corporation a royalty-free, worldwide,
irrevocable license under the Group B Patents to make, use, have made, import,
sell, and offer to sell (i) products embodying or utilizing any invention
claimed in a Group B Patent, (ii) products made by or using a method or process
of any claim of a Group B Patent, and (iii) services using methods or processes
of any claim of a Group B patent. Such license is: (i) exclusive, with the right
to sublicense, in the WDM Hardware Field and (ii) non-exclusive, without the
right to sublicense, other than in the WDM Hardware Field. Such exclusive
license shall be subject to (a) any pre-existing Bellcore licenses or immunities
from suit relating to such patents listed in Exhibit D hereto, and (b) a
retained royalty-free, worldwide, irrevocable license for Bellcore and its
Affiliates (i) to perform research and development activities for themselves or
others, subject to the observance of the obligations of Section 4.2 hereof
regarding Technical Information, (ii) to make, have made, use, import, license,
sell and offer for license or sale computer software of any type (iii) to test
and evaluate products of itself and others, (iv) to perform any activities in

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connection with the development or formulation of Requirements, and (v) to
perform any other specified activities to be agreed upon in writing by the
Parties.

     (b)  Bellcore hereby grants to the Corporation a royalty-free, worldwide,
irrevocable, non-exclusive license in the WDM Field under the Group C Patents to
make, use, have made, import, sell, and offer to sell (i) products embodying or
utilizing any invention claimed in a Group C Patent, (ii) products made by or
using a method or process of any claim of a Group C Patent, and (iii) services
using methods or processes of any claim of a Group C patent, without the right
to sublicense.

2.3  Specific Patents - Licenses
     ---------------------------

     (a)  Regarding the following patents, patent applications, and all patent
applications based on any of the following disclosures, if any, all parents (to
the extent Bellcore is an owner or co-owner of such parent application),
divisions, continuations and continuations-in-part of such patent applications
(and patent applications pursuant to which such patents were granted), all
patents issuing on any of the foregoing applications, all re-issues of any of
the foregoing patents and all foreign counterparts to any of the foregoing
patent applications and patents (hereinafter, the "Section 2.3 Patents"),
Bellcore grants to the Corporation a non-transferable, worldwide, royalty-free,
irrevocable license to make, use, have made, import, sell, and offer to sell (i)
products embodying or utilizing any invention claimed in a Section 2.3 Patent,
(ii) products made by or using a method or process claimed in a Section 2.3
Patent, and (iii) services using methods or processes of any claim of a Section
2.3 patent. Such license is: (i) exclusive with the right to sublicense under
Bellcore's rights in the claims of the Section 2.3 Patents in the WDM Hardware
Field, and (ii) non-exclusive under such claims outside of the WDM Hardware
Field, with the right to sublicense as set forth below in Section 2.3 (c).

          (i)  US Patent No. 5,673,142

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          (ii)  A patent application covering an invention relating to a method
                of identifying faults in WDM optical networks, filed by Lucent
                Technologies solely in the name of John Zyskind, an employee of
                Lucent Technologies (such license being contingent upon
                Bellcore's reaching agreement with Lucent Technologies, Inc.
                regarding Bellcore's claim of joint ownership of such
                invention).

          (iii) A patent application covering an invention relating to a method
                of fast gain control in WDM optical networks, filed by Lucent
                Technologies solely in the name of A. K. Srivastava, an employee
                of Lucent Technologies (such license being contingent upon
                Bellcore's reaching agreement with Lucent Technologies, Inc.
                regarding Bellcore's claim of joint ownership of such
                invention).

          (iv)  U.S. Patent No. 4,821,255.

          (v)   U.S. Patent No. 5,550,818.

          (vi)  A patent application entitled (***).

     (b) The exclusive field of use licenses granted in Section 2.3(a) hereof
         shall be subject to: (a) the pre-existing Bellcore licenses or
         immunities from suit relating to such patents listed in Exhibit D
         hereto, and (b) a retained royalty-free, worldwide, irrevocable license
         for Bellcore and its Affiliates (i) to perform research and development
         activities for themselves and others, subject to the observance of the
         obligations of Section 4.2 hereof regarding Technical Information (ii)
         to make, have made, use, import, license, sell and offer for license or
         sale computer software of any type, (iii) to test and evaluate products
         of itself and others, (iv) to perform any activities in connection with
         the development or formulation of Requirements, and (v) to

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         perform any other specified activities to be agreed upon in writing by
         the Parties.

     (c) Bellcore hereby grants to Corporation the right to sublicense
         Corporation's customers under Corporation's non-exclusive rights to the
         Section 2.3 Patents outside the WDM Hardware Field, subject to the
         following limitations:

          (i)   such sublicenses shall be personal, non-exclusive, royalty-free,
                and non-transferable;

          (ii)  such sublicenses may only be granted to persons or entities who
                are vendees of Corporation Products or Corporation Services;

          (iii) any sublicensees agree to be bound by an agreement substantially
                in conformance with and no less restrictive than the terms of
                the Customer Sublicense Agreement attached hereto and made a
                part hereof as Exhibit H;

          (iv)  such sublicense rights shall not include the right to make or
                operate a network or system if such network or system, or the
                operation of such network or system, infringes any claim of a
                Section 2.3 Patent solely from the presence or operation of
                products other than Corporation's products, and Bellcore hereby
                expressly reserves the right to enforce such claim against such
                network or system.

2.4  Technical Information
     ----------------------

          Bellcore hereby grants to the Corporation a non-transferable, royalty-
free, irrevocable, worldwide license to use, reproduce, prepare derivative works
based on, distribute, and display the Technical Information. Such license is:
(a) exclusive in the WDM Hardware Field for such Technical Information owned by
Bellcore and solely applicable to the WDM Hardware Field (with the right to
sublicense in the WDM Hardware Field subject to the sublicensee's undertaking in
writing to be bound by the

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obligations of Section 4.1 hereof), and (b) nonexclusive (without the right to
sublicense) in the WDM Field. Such exclusive license in the WDM Hardware Field
shall become non-exclusive after three (3) years from the Effective Date hereof
for the Technical Information specified in clause (1) of the definition thereof
and not otherwise included in the Technical Information, and shall be subject to
(a) the pre-existing Bellcore licenses relating to Technical Information listed
at Exhibit D hereto and (b) the retained irrevocable, royalty-free, worldwide,
right of Bellcore and its Affiliates to use such Technical Information (i) to
perform research and development activities for themselves or for projects
performed for others that do not solely relate to the subject matter of the WDM
Hardware Field, subject to the confidentiality and non-disclosure provisions of
Section 4.2 hereof, (ii) to make, have made, use, import, license, sell and
offer for license or sale computer software of any type, (iii) to test and
evaluate products of itself and others, (iv) to perform any activities in
connection with the development or formulation of Requirements and (v) to
perform any other specified activities to be agreed upon in writing by the
Parties.

2.5  Reserved
     --------

2.6  Specific Information
     --------------------

     Notwithstanding the provisions of Section 2.4 hereof the rights granted to
the Corporation in the following information shall be governed solely by the
provisions of this Paragraph 2.6. Bellcore hereby grants to the Corporation the
following non-transferable, royalty-free, irrevocable, worldwide rights in the
information specified below in the form in which it exists as of the Effective
Date unless otherwise indicated and subject to any pre-existing Bellcore
licenses or immunities from suit relating to such information:

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               (1) a sole license to use the C program source code for the
          network simulation tool software comprising the Gamelin simulator that
          runs on the OPNET platform;

               (2) a sole license to use the C program source code for the
          frequency and time simulation tools being developed by Ioannis Roudas
          that runs on the SPW platform; provided, however, that Bellcore shall
          have the right to use, provide and license object code based in whole
          or in part on such source code for research purposes and prototypes
          and for noncommercial networks for governmental agencies or other
          noncommercial entities;

               (3) a sole license, with the right to sublicense, to use the C++
          program source code for the Network Element Software, including
          the Network element controller and the Craft and Graphical User
          Interface concepts and software, developed by Bellcore for the MONET
          and ONTC testbeds; provided, however, that Bellcore shall have the
          right to use, provide and license object code based in whole or in
          part on such source code for research purposes and prototypes and for
          noncommercial networks for governmental agencies or other
          noncommercial entities;

               (4) a non-exclusive license for internal use only and not for
          providing services for others, to use  (i) the WDM Planning Tool in
          its current form and in its first released form as adapted by
          Bellcore's Software Systems Group as an add-on module to Bellcore's
          SONET Planning Tool  and (ii) the SONET Planning Tool, as set forth in
          the SONET and WDM Planning Tools License Agreement entered into by the
          Corporation and Bellcore on even date herewith;

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               (5) a non-exclusive license to use the following reports listed
          at Schedule IV to the Contribution Agreement (but no other reports
          prepared for a client unless specifically stated): (i) CARIN Optical
          Networking deliverable, (ii) ONTC deliverable reports; (iii) SONET
          deliverable reports; and  (iv) ONR deliverable reports

               (6) a non-exclusive license to use the Technical Information
          created by Bellcore personnel in Department 2167 to the extent it is
          directed to the following WDM applications: networking, architectures,
          economics, switching protocols, protection switching signaling,
          management, control, economic and performance modeling and integration
          with current SONET; and

               (7) a non-exclusive license to: (a) use and copy the documents
          generated solely by Bellcore prior to and after the Effective Date
          hereof under the current Defense Advanced Research Projects Agency-
          Multiwavelength Optical Networking contract (Contract No. MDA 972-95-
          3-0027 DARPA-MONET ("DARPA MONET Contract") (but not including any
          extension thereof or follow-on program), provided that the Corporation
          continues to make Transferred Employees available for the DARPA MONET
          Contract under the terms set forth in the Consulting Agreement entered
          into by the Corporation and Bellcore on even date herewith, and (b)
          disclose information in such documents to the Corporation's hardware
          customers (subject to the provisions of Section 4.1 hereof) to the
          extent that such disclosure is necessary for the marketing, use and
          maintenance of such hardware to which the information directly
          relates.

2.7  Third Party Information
     -----------------------

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     Notwithstanding the provisions of Sections 2.4 and 2.6 hereof, Bellcore
does not grant to the Corporation any rights in Technical Information to the
extent that such Technical Information is proprietary or confidential
information of third parties and Bellcore does not have the right to grant such
rights to such proprietary or confidential information without a breach of
obligation to any third party or the payment of any royalties or fees to such
third parties.

2.8  Existing License Agreements
     ---------------------------

     Bellcore retains and does not assign to the Corporation all existing
license agreements involving any of the Group A, Group B, or Section 2.3 Patents
or Technical Information listed in Exhibit D.

2.9  Covenant Not to Sue
     -------------------

     (a)  Bellcore hereby covenants not to sue the Corporation or its Affiliates
for any contributory infringement or inducement of infringement of any Bellcore
optical networking patents or patent claims that are based on or claim priority
of an application filed until two (2) years after the Effective Date.  The
Corporation hereby covenants not to sue Bellcore or its Affiliates for
contributory infringement or inducement of infringement of any of the
Corporation's optical networking patents naming any of the Transferred Employees
as inventors or based on or claiming priority of an application filed until two
(2) years after the Effective Date hereof.  The covenants in this Section
2.9(a), however, do not extend to, or benefit customers of the Corporation or
Bellcore, and Bellcore and the Corporation each retain whatever rights it might
have against such customers for any direct or other infringement of its patents.

     (b)  Bellcore hereby agrees that it shall not, and agrees that its
Affiliates shall not, assert any claim of any one or more of the Bellcore
Patents:

               (i) against Corporation or its successors in interest for making,
having made, using, selling, licensing, offering for sale or license, or
importing any one or more

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Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

of the Corporation Products or Corporation Services to the extent any
infringement of a claim of such Bellcore Patents is a result of Non-Assertion
Technology of the Corporation Product or such infringement is a result of
providing Non-Assertion Technology as a Corporation Service;

          (ii)  against Corporation's vendees, mediate or immediate, for using,
selling, licensing, offer for sale or license, or importing any one or more of
Corporation Products to the extent any infringement of a claim of such Bellcore
Patents is a result of any Non-Assertion Technology of the Corporation Product;

          (iii) against Corporation's vendors for making Corporation Products,
or components thereof, which are provided to Corporation for sale or use by
Corporation to the extent any infringement of a claim of such Bellcore Patents
is a result of Non-Assertion Technology of the Corporation Product;

          (iv)  against subcontractors for performing Corporation Services to
Corporation customers for or on behalf of Corporation to the extent any
infringement of a claim of such Bellcore Patents is a result of providing Non-
Assertion Technology as a Corporation Service; and

          (v)   against third parties for making or using a network or system
that infringes a network claim of a Bellcore Patent provided that a Corporation
Product is a material element of such infringed network claim and such
Corporation Product has no substantial use other than a use that infringes such
network claim.

     (c) (i) For the  select sub-set of Bellcore Patents as listed in Exhibit I
(including those patents added to Exhibit I pursuant to the procedures set forth
in subsections ii, iii, and iv below), and all continuations, divisions,
continuations-in-part of the applications leading to such patents  (or patent
applications pursuant to which such patents were granted), all patents that
issue from any of the foregoing, all reissues of any of the foregoing and all
foreign counterparts of any of the foregoing applications and patents,

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Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

Bellcore agrees that it will make any assignment or exclusive license of the
Bellcore Patents subject to the terms of the non-assertion provisions of this
Section 2.9

          (ii)  For a period of six months extending forward from the execution
date of this Agreement, the Corporation shall have the right to request, in
writing, up to ten (10) additional Bellcore Patents to be added to the list set
forth in Exhibit I.  Within ninety (90) days after receiving this request,
Bellcore shall have the right to remove from this list of requested additional
Bellcore Patents, those it believes, in good faith, are not relevant to the WDM
Field.  The remaining requested Bellcore Patents shall then become incorporated
in and become part of Exhibit I.

          (iii) At the end of the two year period beginning on the Effective
Date of this Agreement, Bellcore agrees to provide the Corporation a listing of
all patents issued to Bellcore within that two (2) year period that Bellcore in
good faith believes are relevant to the WDM Field.  Within 90 days of receiving
this listing, the Corporation shall have the right to identify, in writing, up
to thirty (30) patents from the list to be incorporated in and become part of
Exhibit I.

          (iv)  During the two year period beginning on the Effective Date of
this Agreement, Bellcore agrees that before it either assigns or exclusively
licenses any patent that issued within this two year period and for which
Bellcore in good faith believes such issued patent is relevant to the WDM Field,
it will notify the Corporation of the issued patent in question, and the
Corporation will have the option of adding such patent to the list of patents in
Exhibit I.  Any such patent added to Exhibit I under this subsection iv will
count toward the thirty (30) the Corporation may add to Exhibit I under
subsection iii above.

     (d)  Bellcore agrees that it shall grant upon request non-exclusive
licenses on commercially reasonable terms to third parties under any one or more
of Bellcore Patents necessary to permit the implementation and use of
Corporation Products and/or

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Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

Corporation Services in any network covered by such Bellcore Patents.
Notwithstanding the foregoing, nothing in this paragraph shall be construed to
limit or restrict, in any way, Bellcore's ability to assign or exclusively
license any of the Bellcore Patents prior to any such request.

2.10 Inventions Conceived Prior to the Effective Date
     ------------------------------------------------

     Except as provided in Section 2.1, title to any inventions conceived prior
to the Effective Date hereof by Transferred Employees shall vest in Bellcore
whether or not patent application(s) covering such inventions are filed before
or after such Effective Date, provided, however, that the Parties agree to
negotiate in good faith as to whether patent applications for such inventions
filed after the Effective Date should be included in and treated as Group A
Patents, Group B Patents, or Group C Patents pursuant to the following criteria:

          (1) Group A Patents -- patents required for and solely applicable in
          the WDM Hardware Field.

          (2) Group B Patents -- patents required for and applicable in both the
          WDM Hardware Field and elsewhere in the WDM Field.

          (3) Group C Patents -- applicable in the WDM Field, but not meeting
          the above-stated criteria of Group A Patents or Group B Patents.

Any such patent applications that are agreed to be treated as Group A Patents,
Group B Patents, or Group C Patents shall be added to Exhibit A, B, or C
respectively, and, if in Group A, shall be assigned by Bellcore to the
Corporation subject to retained rights as set out in Section 2.1 hereof.

2.11 Non-enforcement Against Bellcore under the Corporation's Patents
     ----------------------------------------------------------------

     The Corporation covenants for itself and for any successor in interest not
to sue Bellcore, its Affiliates, and their customers based on any patent of the
Corporation relating to optical networking or WDM technology that is filed, or
claims the priority of

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Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

any application filed, prior to the execution of this restated and amended
Agreement, as a result of Bellcore or its Affiliates (a) making, using,
licensing, importing, selling or offering for license or sale computer software
of any type, or the use of such computer software by their customers, or (b)
performing any activities in connection with the development or formulation of
Requirements.

2.12  Trademarks
      ----------

     To the extent that it has any, Bellcore hereby assigns its entire right,
title and interest in and to the trademarks TELLIUM and LAMBDANET to the
Corporation, together with all of Bellcore's good will associated with or
symbolized by such mark.

2.13  No Implied Licenses
      -------------------

Nothing in this Agreement shall be interpreted or construed as granting to the
Corporation or its customers any licenses or rights in any patents or patent
applications owned by or licensed to Bellcore or its Affiliates except as
specifically stated in this Agreement, irrespective of whether by implication,
custom, estoppel or operations of law.

              ARTICLE III - PATENT COSTS, ENFORCEMENT AND DEFENSE
              ---------------------------------------------------

3.1  Group A Patents
     ---------------

     The Corporation shall be responsible for, bear all costs and retain all
recoveries associated with, the preparation, filing, prosecution, maintenance
and enforcement or defense of the Group A Patents incurred or received after the
Effective Date.

3.2  Other Patents - Prosecution
     ---------------------------

     Bellcore shall be responsible for the preparation, filing, prosecution and
maintenance of the Group B and Section 2.3 Patents using counsel selected by
Bellcore and reasonably acceptable to the Corporation, subject to the provisions
of Section 3.4 hereof.  Bellcore and the Corporation shall share equally the
costs of preparation, filing, prosecution and maintenance of the Group B Patents
and the Section 2.3 Patents incurred

                                      -18-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

after the Effective Date hereof. The Corporation shall have the opportunity to
comment and have input on the prosecution and maintenance of such Group B
Patents and Section 2.3 Patents.

3.3  Other Patents - Defense and Enforcement
     ---------------------------------------

     (a) Subject to the provisions of Paragraph 3.3(b) and (c) hereof, the
Corporation shall be solely responsible for, bear all costs associated with and
retain all recoveries obtained from, the enforcement of Group B Patents and
Section 2.3 Patents in the WDM Hardware Field using counsel selected by the
Corporation and reasonably acceptable to Bellcore.  Bellcore shall be solely
responsible for, bear all costs associated with and retain all recoveries
obtained from, the enforcement of Group B Patents and Section 2.3 Patents
outside the WDM Hardware Field.

     (b) Each of Bellcore and the Corporation shall cooperate with the other in
the enforcement and defense of the Group A, Group B and Section 2.3 Patents.
Each agrees to give the other notice of any claims, suits or proceedings
challenging the validity or enforceability of any of the Group B or Section 2.3
Patents.  Bellcore and the Corporation shall permit themselves to be named as an
additional plaintiff in any suit or proceeding brought by the other Party hereto
pursuant to Section 3.3(a) hereof, against a third party asserting infringement
of any of the Group B or Section 2.3 Patents, if doing so is necessary in order
to bring or maintain such suit; provided that such suit does not also charge a
third party with infringement of other patents not included in the Group B or
Section 2.3 Patents, and does not include any other claim by such other Party
than infringement of  Group B patents and Section 2.3 Patents.  Such other Party
shall give the Party being named at least 30 days prior written notice before
naming it as an additional plaintiff and shall indemnify and hold it harmless
against any costs, damages, penalties or expense incurred by or awarded against
it (including reasonable attorney's fees) as a

                                      -19-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

result of such suit or proceeding. Bellcore shall have the right to be
represented by counsel of its choosing in any suit or proceeding brought by or
against the Corporation that involves a challenge to the validity or
enforceability of any Group B or Section 2.3 Patent. Should the suit or
proceeding be brought in a jurisdiction having an "entire controversy doctrine"
Bellcore and the Corporation agree to cooperate to ensure that no legitimate
cause of action be excluded from the suit or proceeding.

3.4  Discontinuation of Maintenance or Prosecution
     ---------------------------------------------

     In the event that the Corporation or Bellcore shall decide not to file or
to discontinue prosecution or maintenance or to discontinue its participation in
such filing, prosecution, or maintenance of any patent application or patent
among Groups A or B or Section 2.3 Patents in any country in the world, the
discontinuing Party making such decision shall notify the other Party in writing
at least 60 days prior to the deadline for taking such action to permit such
other Party to assume the responsibility of such patent application or patent,
at its own expense.  In the event such other Party elects to file or continue
the prosecution of such patent application or to maintain such patent
application or patent at its expense, if the discontinuing Party owns such
patent application or patent, it shall assign it to such other Party subject to
a retained non-exclusive license in the WDM Field, and if such discontinuing
Party had license rights in such patent application or patent, they shall become
non-exclusive; provided, however, that in the case of a Group B or Section 2.3
Patent being assigned by Bellcore to the Corporation pursuant to this Section
3.4, such non-exclusive license to Bellcore in the WDM Hardware Field shall only
extend to the retained rights in such field specified in Section 2.2 or 2.3
hereof, respectively.

                         ARTICLE IV - CONFIDENTIALITY
                         ----------------------------

4.1  The Corporation shall hold in confidence and not disclose any portion of
the Technical Information licensed to the Corporation pursuant to this Agreement
except (a)

                                      -20-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

to its employees and consultants who have a need to know such information and to
any others to whom such disclosure may be expressly authorized hereunder, or (b)
where such disclosure is necessary to implement the use for which rights are
granted hereunder or the information is inherently disclosed by the exercise of
such rights.

4.2  Bellcore shall hold in confidence and not disclose any portion of the
Technical Information licensed exclusively to the Corporation pursuant to this
Agreement, except (a) to its employees and consultants who have a need to know
such information and to any others to whom such disclosure may be expressly
authorized hereunder, or (b) where such disclosure is necessary to implement the
rights retained hereunder or the information is inherently disclosed by the
exercise of such rights.

4.3  Further to Sections 4.1 and 4.2 above, Bellcore and the Corporation agree
that they shall appropriately notify each person to whom any such disclosure is
made that such disclosure is made in confidence and that the disclosed Technical
Information must be kept in confidence by such person.

4.4  The obligations of this Article 4 shall endure for a period of 5 years from
and after the Effective Date, but shall not apply to any portion of the
Technical Information that the Party wishing to disclose can demonstrate (a) has
become available to the general public, provided that such public knowledge was
not the result of any fault of such Party or its Affiliates, (b) has been
lawfully received without obligation of confidentiality from a third party that
is not under an obligation of confidence with respect thereto, or (c) that such
disclosure is required by law, regulation or order of a court, provided that
notice thereof is promptly given to the other Party prior to such disclosure in
time that it may seek a protective order.

                           ARTICLE V - MISCELLANEOUS
                           -------------------------

                                      -21-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

5.1  In the event that either Party discovers that it does not have or has not
received a document that it should have retained or received pursuant to this
Agreement, the other Party shall cooperate in supplying a copy of such document
to such Party.

5.2  Bellcore warrants that it has full right to enter and perform its
obligations under this Agreement and to make the assignments and grant the
licenses herein granted.

5.3  EXCEPT AS PROVIDED IN THIS ARTICLE V, BELLCORE MAKES NO REPRESENTATIONS OR
WARRANTIES, EXPRESS OR IMPLIED.  BY WAY OF EXAMPLE BUT NOT OF LIMITATION,
BELLCORE MAKES NO REPRESENTATION OR WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
ANY PARTICULAR PURPOSE, OR CONCERNING THE VALIDITY, ENFORCEABILITY OR SCOPE OF
ANY PATENT OR THAT THE USE OF THE PATENTS AND TECHNICAL INFORMATION ASSIGNED OR
LICENSED PURSUANT TO THIS AGREEMENT OR ANY OF IT WILL NOT INFRINGE ANY PATENT,
COPYRIGHT, TRADEMARK, TRADE SECRET OR KNOW-HOW OF ANY THIRD PARTY, AND IT SHALL
BE THE SOLE RESPONSIBILITY OF THE CORPORATION TO MAKE SUCH DETERMINATION AS IS
NECESSARY WITH REGARD TO THE ACQUISITION OF LICENSES UNDER INTELLECTUAL PROPERTY
RIGHTS OF THIRD PARTIES.

5.4  The Corporation will not, without the express written permission of
Bellcore (a) use in advertising, publicity, packing, labeling or otherwise any
tradename, trademark, trade device, service mark, symbol or any other
identification or any abbreviation, contraction or simulation thereof owned or
used by Bellcore to identify its products and services, or (b) represent
directly or indirectly, that any product or service produced in the whole or in
part by the use of any of the Technical Information is a product or a service
of Bellcore or is made in accordance with or uses any information or
documentation of Bellcore.

                                      -22-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

5.5  Nothing contained in here shall be construed as conferring by implication,
estoppel or otherwise, except as expressly granted herein, any license or right
under any patent whether or not the exercise of any right herein granted
necessarily employs an invention of any existing or later issued patent.

5.6  Bellcore and the Corporation shall not be liable to one another for
indirect, special, incidental or consequential loss or damages of any nature,
however caused.

5.7  Upon the execution of this Agreement, the IPA executed on May 8, 1997 by
and between the parties is terminated and superceded by this Agreement.  This
Agreement, together with the Contribution Agreement, set forth the entire
agreement and understanding between the Parties as to the subject matter hereof
and merges all prior discussions between them.  Neither of the Parties shall be
bound by any conditions, definitions, warranties, understandings,
representations with respect to such subject matter other than expressly
provided herein, or in any referred to existing written agreement between the
Parties.

5.8  Neither this Agreement nor any right hereunder shall be assignable or
otherwise transferable in whole or in part by either Party without the prior
written consent of the other; provided, however, that either Party shall have
the right to assign this Agreement to the successor of substantially all of its
related business, who agrees in a writing, delivered to the other Party, to be
bound by the obligations of this Agreement.

5.9  Bellcore shall provide the Corporation with an assignment document for the
United States and for the foreign patents and patent applications in the Group A
Patents in the form of Exhibits F and G hereto.  Bellcore agrees at the request
of the Corporation to execute additional documents prepared by the Corporation
that are necessary or appropriate for the preparation, filing, prosecution, or
maintenance of any one or more of the Group A Patents in any one or more
countries.  Bellcore further agrees at the request of the Corporation to execute
any additional documents prepared by corporation that are

                                      -23-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

necessary or appropriate for the enforcement or defense of any one or more of
the Group A Patents in any one or more countries and Corporation shall reimburse
Bellcore for any and all costs, including personnel time, reasonably incurred by
Bellcore in executing such additional documents. Bellcore specifically agrees to
cooperate with any attempt by Tellium or its successor in interest to have
assignment documents executed by Bellcore, and its current and/or former
employees for applications and patents based on provisional applications filed
in the United States.

5.10 This Agreement and all licenses granted herein shall continue in full force
and effect for the term hereof, except as expressly provided in this Section
5.10.  This Agreement and all licenses granted hereunder shall terminate and the
IPA executed on May 8, 1997 by and between the parties shall be reinstated,
effective immediately, if prior to either of (i) a third party or parties
investing in the Corporation at least Twelve Million Dollars ($12,000,000) in
addition to the bridge financing which is occurring on or about the date hereof,
or (ii) a sale of the Corporation (whether by sale of stock, merger,
consolidation or similar transaction or sale of all or substantially all of the
assets of the Corporation) for at least Twenty Four Million Dollars
($24,000,000), any of the following occur:

     (i)   any material breach by Corporation of this Agreement (continuing for
           thirty (30) calendar days after receipt of notice from Bellcore);

     (ii)  a sale of the Corporation for less than Twenty Four Million Dollars
           ($24,000,000);

     (iii) the initiation of any judicial or nonjudicial foreclosure proceedings
           pursuant to the Uniform Commercial Code or other applicable law by
           any secured or unsecured creditor of the Corporation;

     (iv)  the appointment of a receiver, or any comparable event or proceeding
           under the laws of the jurisdiction in which Corporation is located;

                                      -24-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

     (v)  the making by Corporation of any assignment for the benefit of
          creditors; or

     (vi) a violation by the Corporation of any governmental prohibition
          regarding technology export,

provided, however, that in the event of the occurrence of an event described in
either clause (iii) or (iv) which is dismissed or discharged within sixty (60)
days of the institution thereof, then this Agreement all such licenses shall
automatically, and without any further action being required, be reinstated and
in full force and effect.

5.11  All notices or other communications under this Agreement shall be in
writing and shall be deemed to have been duly given when (a) delivered in
person, (b) one day after being delivered, properly addressed, fees pre-paid to
an overnight delivery service for next day delivery (c) sent by facsimile, (d)
three days after being deposited in the U.S. mail, postage pre-paid.  All such
notices shall be addressed as follows:

To:  Bell Communications Research Inc.
     445 South Street
     Morristown, NJ 07960-6438
     Attention: Loria B. Yeadon
          Tel:  (973) 829-4332
          Fax:  (973) 829-2366
and
     Tellium, Inc.
     2 Crescent Place
     Building C
     Oceanport, New Jersey, NJ 07757
     Attention: M. Farooque Mesiya
          Tel:  (732) 923-4100
          Fax:  (732) 923-9805
The address of either Party at which notices or communications are to be sent,
may be changed by notice to the other Party.

                                      -25-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

5.12 This Agreement shall be interpreted and construed in accordance with the
laws of the State of Delaware applicable to agreements made and to be performed
within the State of Delaware.

5.13   If any provision or portion of a provision of this Agreement is held
invalid or unenforceable, the remainder of the Agreement shall not be affected,
and the remaining terms will continue in effect and be binding on the Parties,
provided that such holding of invalidity or unenforceability does not materially
affect the essence of the Agreement.

                                      -26-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS AGREEMENT TO BE EXECUTED
IN DUPLICATE ORIGINALS BY THEIR RESPECTIVELY DULY AUTHORIZED REPRESENTATIVES.

                              Bell Communications Research, Inc.,
                              a Delaware corporation

                              By: __________________________________________

                              Name: ________________________________________
                              Title: _______________________________________

                              Tellium, Inc., a Delaware corporation

                              By: __________________________________________

                              Name: ________________________________________
                              Title: _______________________________________

                                      -27-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

                                   Exhibit A
                                   ---------

                                Group A Patents
                                ---------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
  Total        Patent # or                  Patent Title                            Status            Foreign
  -----        -----------                  ------------                            ------            -------
                 Serial #                                                                              Filing
                 --------                                                                              ------
                                                                                                       Status
                                                                                                       ------
------------------------------------------------------------------------------------------------------------------
<S>            <C>              <C>                                                 <C>              <C>
   1             (***)          (***)                                                (***)             (***)
------------------------------------------------------------------------------------------------------------------
   2             (***)          (***)                                                (***)             (***)
------------------------------------------------------------------------------------------------------------------
   3             (***)          (***)                                                (***)             (***)
------------------------------------------------------------------------------------------------------------------
   4           08/554,599       Self-Aligned Ridge-to-Buried Hererstructure         App 965          Available
                                Waveguide for Multiwavelength Laser Array           Filed on
                                Integration                                         06/17/96

------------------------------------------------------------------------------------------------------------------
   5           5,612,968        Redundant Wavelength Laser Array                    3/18/97          NONE

------------------------------------------------------------------------------------------------------------------
   6           60/035,590       Design for 40-wavelength Laser Array; now         Prov. Filed        Available
                                Dense Multiwavelength Laser Array Apparatus        App 1032
                                                                                    1/17/97
------------------------------------------------------------------------------------------------------------------
   7           60/036,003       Integrated Laser Arrays with Modulator            Prov. Filed        Available
                                                                                   App 1039
                                                                                    1/22/97
------------------------------------------------------------------------------------------------------------------
   8           5,414,540        Frequency-Selective Optical Switch Employing        5/9/95           Pending
                                a Frequency Dispersive Element Polarizing                            Germany,
                                Dispersive Element and Polarizing Modulating                         France,
                                Elements                                                             United
                                                                                                     Kingdom,
                                                                                                     Canada,
                                                                                                     Japan

------------------------------------------------------------------------------------------------------------------
   9           08/780,925       Wedge-Shaped Liquid Crystal Cell                   App 1017           Available
                                                                                     Filed
                                                                                    1/9/97
------------------------------------------------------------------------------------------------------------------
   10          60/037,216       Temperature Indemendent Operation of Liquid       Prov. Filed         Available
                                Crystal Modulators                                 App 1043
                                                                                    2/6/97

------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -28-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

<TABLE>
------------------------------------------------------------------------------------------------------------------
<S>                <C>          <C>                                                    <C>            <C>
   11               5,392,154   Self-Regulating Multiwavelength Optical                2/21/95          None
                                Amplifier Module for Scalable Lightwave
                                Communications System
------------------------------------------------------------------------------------------------------------------
   12               5,345,322   Fiber Amplifier Cascade for Multiwavelength            9/6/94           None
                                Lightwave Communications System
------------------------------------------------------------------------------------------------------------------
   13              08/688,588   Automatic Feedback Gain Control for Multiple           App 955       Available
                                Channels in a Doped Fiber Amp                           Filed
                                                                                       7/30/96

------------------------------------------------------------------------------------------------------------------
   14              08/568,037   A Parametric Wavelength-interchanging                  App 908          None
                                Cross-Connect Architecture                             12/6/95

------------------------------------------------------------------------------------------------------------------
   15              08/654,979   Method and Apparatus for Monitoring the                App 968        Available
                                State of Liquid Crystal Polarization                   5/29/96
                                Modulator

------------------------------------------------------------------------------------------------------------------
   16                 (***)     (***)                                                   (***)           (***)
------------------------------------------------------------------------------------------------------------------
   17              60/037,411   Dual Liquid Crystal Switch                            Prov. App       Available
                                                                                        1042
                                                                                       2/7/97
------------------------------------------------------------------------------------------------------------------
   18                 (***)     (***)                                                   (***)           (***)
------------------------------------------------------------------------------------------------------------------
   19              60/035,784   Hybrid Wavelength Interchange Crossconnect            Prov. App       Available
                                using both Transparent Optical Switch and                989
                                Electronic Switching Technologies; now                 1/7/97
                                Hybrid Multiwavelength Optical
                                Cross-Connects and Add Drop Multiplexers

------------------------------------------------------------------------------------------------------------------
   20               5,434,700   All-Optical Wavelength Converter                       7/18/95          None
------------------------------------------------------------------------------------------------------------------
   21                 (***)     (***)                                                   (***)           (***)
------------------------------------------------------------------------------------------------------------------
   22              08/528,447   Passband Flattening of Integrated Optical              App 898        Available
                                Filters                                                Iss Fee
                                                                                       Mailed

------------------------------------------------------------------------------------------------------------------
   23                 (***)     (***)                                                   (***)           (***)
------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -29-
<PAGE>

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

<TABLE>

---------------------------------------------------------------------------------------------------------------
<S>            <C>              <C>                                                     <C>           <C>
   24          5,741,811        Optical Switch                                          5/5/98        None
---------------------------------------------------------------------------------------------------------------
   25          5,239,607        Optical Fiber Amplifier with Flattened Gain            08/24/93       None
---------------------------------------------------------------------------------------------------------------
</TABLE>

End of Exhibit A
----------------

                                      -30-
<PAGE>

Note: Redacted portions have been marked with (***).  The redacted portions are
subject to a request for confidential treatment that has been filed with the
securities and Exchange Commission.

                                   Exhibit B
                                   ---------

                                Group B Patents
                                ---------------

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
 Total          Patent # or                 Patent Title                            Status           Foreign
--------        ----------                  ------------                            ------           -------
                 Serial #                                                                             Filing
                 --------                                                                             ------
                                                                                                      Status
                                                                                                      ------
-----------------------------------------------------------------------------------------------------------------
<S>             <C>            <C>                                                  <C>           <C>
   1            60/035,782     InP- Based Heteerojunction Bipolar Transistor        Prov App           None
                                                                                      1000
                                                                                     1/7/97
-----------------------------------------------------------------------------------------------------------------
   2               (***)       (***)                                                  (***)            (***)
-----------------------------------------------------------------------------------------------------------------
   3             5,130,667     Differential Transmimpedance Amplifier                7/14/92        Pending -
                                                                                                    Germany,
                                                                                                   France, UK,
                                                                                                  Netherlands,
                                                                                                   Canada, JP
-----------------------------------------------------------------------------------------------------------------
   4                           Semiconductor Lasers with Thermally Stable           Prov.App        Available
                               Emission Wavelength                                    1056
                                                                                     3/31/97
-----------------------------------------------------------------------------------------------------------------
   5            08/660,330     In-P Based Lasers with Reduced Blue Shifts            App 966           EPO,
                 5,771,256                                                           6/03/96          Canada,
                                                                                                       Japan
-----------------------------------------------------------------------------------------------------------------
   6            08/587,909     Reduced Crosstalk in Optical Crossconnects by         App 923           None
                 5,737,103     Appropriate Configuration of Unused Switch            1/16/96
                               Elements

-----------------------------------------------------------------------------------------------------------------
   7            08/498,080     Asymmetric Optical Cross Connect Switch               App 888           None
                                                                                     7/3/95
                                                                                    Abandoned
-----------------------------------------------------------------------------------------------------------------
   8              (***)        (***)                                                  (***)            (***)
-----------------------------------------------------------------------------------------------------------------
   9             5,207,864     Low-Temperature Fusion of Dissimilar                  5/4/93            None
                                         Semiconductors
-----------------------------------------------------------------------------------------------------------------
   10           08/602,391     Nonlinear Optical Waveguides with Differing           App 934           EPO,
                 5,802,232     Orientation Achieved by Wafer Bonding               Fld 2/16/96        Canada,
                                                                                   Iss. 9/1/98     South Korea,
                                                                                                      Japan
                                                                                                      Taiwan
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -31-
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
<S>          <C>             <C>                                                     <C>              <C>
   11          (***)         (***)                                                    (***)            (***)
-----------------------------------------------------------------------------------------------------------------
   12        5,345,073       Very High Speed Optical Receiver with Cascadable         9/6/94           None
                             Differential Action Feedback Driver
-----------------------------------------------------------------------------------------------------------------
   13        5,006,906       Integrated Semiconductor Waveguide Photodetector         4/9/91           None
-----------------------------------------------------------------------------------------------------------------
</TABLE>

End of Exhibit B

                                      -32-
<PAGE>

                                   Exhibit C
                                   ---------

                                Group C Patents
                                ---------------

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
  Total      Patent #                       Patent Title                     Status            Foreign
  -----      ---------                      ------------                     ------            -------
             or Serial                                                                          Filing
             ---------                                                                          ------
                 #                                                                              Status
                 -                                                                              ------
--------------------------------------------------------------------------------------------------------------
<S>         <C>            <C>                                               <C>              <C>
    1       5,214,527      Electronically Switched Multiple-Channel          5/25/93             None
                           Optical Receiver
--------------------------------------------------------------------------------------------------------------
    2       5,541,949      Strained AiGaInAs Quantum Well Diode Laser        7/30/96            Pending
                                                                                                Germany,
                                                                                              France, China,
                                                                                                  Japan
--------------------------------------------------------------------------------------------------------------
    3       5,381,434      High Temperature Uncooled Diode Laser             1/10/95            Pending
                                                                                                Germany,
                                                                                                France,
                                                                                              China, Japan
--------------------------------------------------------------------------------------------------------------
    4       08/682,863     Coherent Blue/Green Optical Source                 App 978            None
             5,796,902                                                     Fld.07/05/96
                                                                           Iss. 8/18/98
--------------------------------------------------------------------------------------------------------------
    5       5,123,581      Oblique Fracturing of Optical Fibers by           6/23/92             None
                           Offset Shearing
--------------------------------------------------------------------------------------------------------------
    6       5,213,244      Oblique Fracturing of Optical Fibers by           5/23/93             None
                           Angled Scoring
--------------------------------------------------------------------------------------------------------------
    7       5,323,416      Planarized Interference Mirror                    6/21/96             None
--------------------------------------------------------------------------------------------------------------
    8       5,414,541      Optical Switch Employing First and Second         5/9/95              None
                           FerroElectric Cells with Alignment Layers
                           Having Alignment Directions Offset by 45
                           Degrees
--------------------------------------------------------------------------------------------------------------
</TABLE>

End o Exhibit C

                                      -33-
<PAGE>

                                   Exhibit D
                                   ---------

                          Existing License Agreements
                          ---------------------------

Certain persons are authorized to use Bellcore's intellectual property pursuant
to the following agreements:

1.  Intellectual Property Agreement between Bellcore and the RBOCS (January 1,
1994).

2.  Patent License Agreement between AT&T and Bellcore (January 1 1989)

3.  MONET Consortium Agreement (October 31, 1994)

4.  License to DARPA under MONET (as amended April 9, 1997)

5.  Master Agreement for Software and Services between Bellcore and Ameritech
Services Inc., Bell Atlantic NSI Holdings, Inc., BellSouth Telecommunications
Inc., Southwestern Bell Telephone Company, Telesector Resources Group Inc., and
US WEST Communications, Inc. (1996) and amendments thereto, and the Amended and
Restated Master Agreement for Software and Services which became effective upon
the close of the sale of Bellcore to SAIC.

6.  Technology Transfer Agreement between Bell Communications Research Inc. and
JDS Fitel, Inc.  dated May 28, 1996 relating to Optical Switches.

7.  Technology Reinvestment Project (TRP) Technology Development Agreement
between SONET/ATM Self-Healing Ring Consortium and The Advanced Projects Agency,
dated September 6, 1994, concerning Information Infrastructure-Network
Architecture.

8.  Patent license as follows:

Patent No.     Country        Licensee        Date
----------     -------        --------        ----

5,414,540      USA            JDS Fitel       May 28, 1996

End of Exhibit D

                                      -34-
<PAGE>

                                   Exhibit E
                                   ---------

                    Assignment Document for Group A Patents
                    ---------------------------------------

                              To Be Provided Later

                                      -35-
<PAGE>

                                   Exhibit F
                                   ---------

              Assignment Document for Group A Patent Applications
              ---------------------------------------------------

                              To Be Provided Later

                                      -36-
<PAGE>

                                   Exhibit G
                                   ---------

                       Tellium's Products and Services'

Transport Products:

<TABLE>
-------------------------------------------------------------------------------------------------------------
<S>                         <C>
WDM Terminal                Terminal Multiplexer network elements for WDM systems capable of providing
Multiplexers                multiplexed and demultiplexed signals.  Terminal Multiplexers may include
                            either compliant or non-compliant interfaces with transponders.  Terminal
                            Multiplexers may be managed network elements containing an embedded software
                            control system with interfaces to an element management system.
-------------------------------------------------------------------------------------------------------------
WDM Amplifier Systems       Optical Amplifier network elements for WDM systems.  WDM Amplifier Systems may
                            be managed network elements containing an embedded software control system with
                            interfaces to an element management system.
-------------------------------------------------------------------------------------------------------------
WDM Optical Add-Drop        Configurable and fixed optical add-drop multiplexer network elements for use
Multiplexers                in, for example, optical rings, meshes, and linear chain systems.  Includes
                            both multiplexing and demultiplexing functionality.  WDM Optical Add-Drop
                            Multiplexers may be managed network elements containing an embedded software
                            control system with interfaces to an element management system.
-------------------------------------------------------------------------------------------------------------

Switching Products:

-------------------------------------------------------------------------------------------------------------
Optical Cross-Connects      Cross-connect switches, including but not limited to wavelength-selective and
                            wavelength-interchanging cross-connects, using both/either optical or
                            electronic switching fabrics capable of interconnecting optical signals.
                            Optical Cross-connects may be managed network elements containing an embedded
                            software control system with interfaces to an element management system.
-------------------------------------------------------------------------------------------------------------

Network Products:
-----------------

-------------------------------------------------------------------------------------------------------------
Point-to-Point and          WDM point-to-point and linear chain systems including, for example, WDM
Linear Chain WDM            terminal multiplexers, optical amplifiers and optical add-drop multiplexers,
Systems                     connected to transport equipment, such as SONET multiplexers, optical
                            cross-connects, data switching apparatus and networks.
-------------------------------------------------------------------------------------------------------------
Survivable WDM Ring         WDM Ring networks to provide self-healing survivable ring operation, which may
Networks                    include, for example, both/either optical add-drop multiplexers and/or optical
                            cross-connects, optical amplifiers and WDM terminals.  Includes an element
                            management system to coordinate the actions and management of network elements
                            in the WDM Ring, with interfaces to a variety of Network Management Systems.
-------------------------------------------------------------------------------------------------------------
Survivable WDM Mesh         WDM mesh networks to provide self-healing mesh restoration.  Includes, for
Networks                    example, add-drop multiplexers, optical cross-connects and WDM Terminals. Also
                            includes Mesh Restoration Algorithm and system capability and element
                            management system to coordinate the actions and management of network elements
                            in the WDM mesh, with interfaces to a variety of Network
-------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -37-
<PAGE>

<TABLE>
----------------------------------------------------------------------------------------------------------------
<S>                            <C>
                               Management Systems.
----------------------------------------------------------------------------------------------------------------
Hybrid Architectures           WDM meshes and rings and hierarchical networks including transport, switching
                               and network element control systems with distributed network control and
                               survivability and restoration functions.
----------------------------------------------------------------------------------------------------------------
Hybrid Network Elements        Combinations of WDM transport network elements and switching network elements
                               for specialized network applications in the WDM Field.
----------------------------------------------------------------------------------------------------------------

Network Management Products:

----------------------------------------------------------------------------------------------------------------
WDM Global Element             WDM Element management systems to coordinate the operation and administration
Management Systems             of individual and network systems of network elements.  Includes, but is not
                               limited to, interfaces to the element controllers, craft and GUI interface,
                               and to the network management system.
----------------------------------------------------------------------------------------------------------------
Embedded Network               Element control system that is embedded within WDM  network element to manage,
Element Control Systems        operate, and report on the performance and operation of the network element.
                               Includes, but is not limited to, interface to element management system.
----------------------------------------------------------------------------------------------------------------

Services:

----------------------------------------------------------------------------------------------------------------
Network Planning               Modeling and optimizing broadband optical communication networks with respect
Product Support                to the deployment of WDM networks and systems.
Services
----------------------------------------------------------------------------------------------------------------
Engineering, Field and         Customer product and field support.
Installation Services
----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -38-
<PAGE>

                                   Exhibit H
                         PATENT SUB-LICENSE AGREEMENT

     This Agreement, effective as of the date the last Party executes it, is
     between [* Tellium, Inc., a Delaware corporation having an office and place
     of business at 2 Cresent Place, Building C, Oceanport NJ 07757 or its
     successors in interest *], (the "Corporation"), and ____________________
     (SUBLICENSEE).

Definitions

        "BELLCORE" means Bell Communications Research Inc. a Delaware
        corporation having an office and place of business at 445 South Street,
        Morristown, NJ 07960

        "BELLCORE PATENTS" means the following patents or patent applications
        for which BELLCORE has granted CORPORATION the right to sublicense:

        [* To be completed by CORPORATION so as to include any one or more of
        the following:

     U.S. Patent No. 5,673,142 (BELLCORE is a joint owner);
     U.S. Patent No. 4,821,255;
     U.S. Patent No. 5,550,818;
     (***);
     A patent application covering an invention relating to a method of
          identifying faults in WDM optical networks, filed by Lucent
          Technologies solely in the name of John Zyskind, an employee of Lucent
          Technologies (to the extent BELLCORE has rights therein); and

     A patent application covering an invention relating to a method of fast
          gain control in WDM networks, filed by Lucent Technologies solely in
          the name of A.K. Srivastava, an employee of Lucent Technologies (to
          the extent BELLCORE has rights therein)

     All parents (to the extent BELLCORE is an owner or co-owner of such parent
     application), continuations, divisions, and continuations in part of the
     foregoing, all patents issuing on the foregoing, all re-issues of any of
     the foregoing patents, and all foreign counterparts to any of the foregoing
     patent applications and patents *]

     "CORPORATION PRODUCTS" means any one or more of the products described in
     the attached Exhibit G, the components thereof, and any combination of the
     foregoing, which are made by or for the CORPORATION and/or its successors
     in interest.

License Grant

                                      -39-
<PAGE>

CORPORATION, pursuant to the rights granted to it by BELLCORE, hereby grants to
SUBLICENSEE, under the BELLCORE PATENTS, a personal, worldwide, royalty-free,
nonexclusive and nontransferable license to use CORPORATION PRODUCTS, alone or
in combination with other products, free of infringement of said BELLCORE
PATENTS.

The foregoing licenses shall not include:

any further sublicensing rights, or the right to make or operate a network or
system, if such network or system, or the operation of such network or system,
infringes a claim of such BELLCORE PATENTS solely for the presence or operation
of products other than CORPORATION PRODUCTS. Bellcore expressly reserves the
right to enforce such claim against such network or system.

3. Term and Termination - The license granted hereunder shall terminate upon the
earlier of: (a) the expiration of the last to expire of the BELLCORE PATENTS, or
(b) until SUBLICENSEE first ceases to use CORPORATION PRODUCTS. SUBLICENSEE
shall have the right to terminate this license at its convenience upon (30) days
written notice.

[* Other terms to be completed by Corporation *]

4. Representation and Disclaimer of Warranties - CORPORATION represents and
warrants that it is duly authorized to enter into this license. SUBLICENSEE
represents and warrants that it is duly authorized to enter into and be bound by
this license.

EXCEPT FOR THE FOREGOING REPRESENTATIONS, BELLCORE AND CORPORATION MAKE NO
OTHER, AND HEREBY DISCLAIM, ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED.
Moreover, nothing contained in this Sublicense Agreement shall be construed as:

(a)  requiring the securing of any patent or the maintaining of any patent in
     force;
(b)  a warranty as to the validity or scope of any BELLCORE PATENT ;
(c)  a warranty or representation that any design, implementation, or operation
     of any network or system will be free from infringement of patents or other
     intellectual property rights, other than the patents licensed hereunder and
     the other intellectual property rights granted herein, but only to the
     extent to which licenses or rights remain in force hereunder;
(d)  conferring any right to use, in advertising, publicity or otherwise, any
     name, trade name, trademark, service mark, or any contraction, abbreviation
     or simulation thereof;
(e)  an obligation to furnish any manufacturing or technical information or any
     information concerning pending patent applications; or
(f)  conferring by implication, estoppel or otherwise any license or other right
     under any patent or other intellectual property, except as expressly
     granted herein.

                                      -40-
<PAGE>

5.  Indemnification - SUBLICENSEE shall, at its own expense, defend, indemnify,
and hold harmless BELLCORE , and their officers, directors, and employees,
against all claims, liabilities, damages, expenses (including without limitation
reasonable attorney fees and cost), or loss arising out of: (1) any
implementation or operation by SUBLICENSEE of any network or system, unless
otherwise agreed to in a separate writing with Bellcore; or (2) any material
breach by SUBLICENSEE of any of its obligations hereunder.

6.  Binding Effect. This sublicense agreement shall be binding upon and it shall
enure to the benefit of the parties hereto the their respective successors and
permitted assigns. This sublicense and the grant of rights hereunder, are
personal to the SUBLICENSEE.

7.  Assignment. Except as provided in this paragraph, neither this sublicense,
nor any rights or obligations hereunder, may be assigned; provided, however,
that each of the parties may assign this sublicense, and all rights and
obligations hereunder, to a successor entity as a result of a sale of all or
substantially all of the assets of the party which relate to this sublicense.

8.  Patent Marking - SUBLICENSEE shall mark all network and or service marketing
material with the applicable numbers of the BELLCORE PATENTS.

9.  Entire Agreement. This Covenant constitutes the entire agreement and
understanding of the parties with regard to the subject matter hereof and merges
and supersedes all prior discussions, negotiations, understandings and
agreements between the parties concerning the subject matter hereof.

10. Non-Disclosure. Under no circumstances shall the terms and conditions of
this sublicense be disclosed to any third parties (other than BELLCORE or
BELLCORE'S parent corporation), except where such terms and conditions have
become public knowledge or where disclosure is required by order or regulation
of a court of government agency.

       In Witness Whereof, each of the Parties has caused this Agreement to be
executed in duplicate originals by its duly authorized representative on the
respective date entered below.

CORPORATION                         SUBLICENSEE

By _____________________________    By ___________________________

                                      -41-
<PAGE>

Title___________________________    Title__________________________

Date____________________________    Date _________________________

                                      -42-
<PAGE>

                                   EXHIBIT I
PATENTS:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
PATENT No.  TITLE                                                                               DATE     INVENTORS
-----------------------------------------------------------------------------------------------------------------------------
<S>         <C>                                                                               <C>        <C>
RE35,337    Temperature compensation of liquid-crystal etalon filters                           9/24/96  Patel, Wullert
-----------------------------------------------------------------------------------------------------------------------------
4,658,152   Adaptive Rate Multiplexer-Demultiplexer                                             4/14/98  Walters
----------------------------------------------------------------------------------------------------------------------------
4,683,573   Temperature Stabilization of Injection Lasers                                       7/28/98  Albanese
----------------------------------------------------------------------------------------------------------------------------
4,709,978   Mach-Zehnder Integrated Optical Modulator                                           12/1/87  Jackel
----------------------------------------------------------------------------------------------------------------------------
4,755,987   High speed scrambling at lower clock speeds                                         July 5,  Lee, Lee
                                                                                                1988/
                                                                                                June 5,
                                                                                                1987
----------------------------------------------------------------------------------------------------------------------------
4,772,854   All optical repeater                                                                9/20/88  Silberberg
----------------------------------------------------------------------------------------------------------------------------
4,775,207   Electro-optical switch                                                              10/4/88  Silberberg
----------------------------------------------------------------------------------------------------------------------------
4,788,721   Routing of Network Traffic                                                          11/29/88 Krishnan, Ott
----------------------------------------------------------------------------------------------------------------------------
4,796,266   Laser driver circuit with dynamic bias                                              1/3/89   Banwell, Stephens
----------------------------------------------------------------------------------------------------------------------------
4,813,756   Etalon filters for optical channel selection in wavelength division                 3/21/89  Frenkel, Lin
            multiplexed fiber systems
----------------------------------------------------------------------------------------------------------------------------
4,819,226   Framer circuit for use in a DTDM network                                            April 4, Beckner, Chao,
                                                                                                1989 /   Robe, Smoot
                                                                                                Nov. 10
                                                                                                1987
----------------------------------------------------------------------------------------------------------------------------
4,834,483   Fast Optical Cross-Connect for Parallel Processing Computers                        5/30/89  Arthurs, Goodman,
                                                                                                         et al.
----------------------------------------------------------------------------------------------------------------------------
4,835,763   Survivable ring network                                                             5/30/89  Lau
----------------------------------------------------------------------------------------------------------------------------
4,835,768   High speed digital signal framer-demultiplexer                                      May. 30, Hubbard, Kong
                                                                                                1989 /
                                                                                                April 14,
                                                                                                1988
----------------------------------------------------------------------------------------------------------------------------
4,846,540   Optical waveguide junction                                                          7/11/89  Kapon
----------------------------------------------------------------------------------------------------------------------------
4,855,231   Phase-shifted gratings by selective image reversal of photoresist                   Dec. 5,  Chan
                                                                                                1989 /
                                                                                                May. 6,
                                                                                                1988
----------------------------------------------------------------------------------------------------------------------------
4,856,860   Integrated all-optical switching devices                                            8/15/89  Silberberg, Smith
----------------------------------------------------------------------------------------------------------------------------
4,869,569   Polarizing Optical Waveguides                                                       9/26/98  Kapon
----------------------------------------------------------------------------------------------------------------------------
4,873,681   Hybrid optical and electronic packet switch                                         10/10/98 Arthurs, Goodman,
                                                                                                         Kobrinski, Vecchi
----------------------------------------------------------------------------------------------------------------------------
4,896,934   Broadband optical multicast switch                                                  1/30/90  Arthurs, Goodman,
                                                                                                         Kim, Lee
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -43-
<PAGE>

<TABLE>
<S>         <C>                                                                                 <C>      <C>
----------------------------------------------------------------------------------------------------------------------------
4,906,064   Switch for selectively switching optical wavelengths                                3/6/90   Cheung
----------------------------------------------------------------------------------------------------------------------------
4,931,941   Adaptive Routing of Network Traffic                                                 6/5/90   Krishnan
----------------------------------------------------------------------------------------------------------------------------
4,943,133   Low loss semiconductor optical phase modulator                                      7/24/90  Deri, Kapon
----------------------------------------------------------------------------------------------------------------------------
4,949,350   Surface emitting semiconductor laser                                                Aug. 14, Jewell, Scherer
                                                                                                1990 /
                                                                                                July 17,
                                                                                                1989
----------------------------------------------------------------------------------------------------------------------------
4,965,525   Angled-facet flared-waveguide traveling-wave laser amplifiers                       Oct. 23, Zah
                                                                                                1990 /
                                                                                                Nov. 13
                                                                                                1989
----------------------------------------------------------------------------------------------------------------------------
4,980,891   Clocked optical regenerator and other optoelectronic functional circuits            12/25/90 Izadpanah
----------------------------------------------------------------------------------------------------------------------------
4,988,157   Optical switch using bubbles                                                        1/29/91  Jackel, Tomlinson
----------------------------------------------------------------------------------------------------------------------------
5,002,349   Integrated acousto-optic filters and switches                                       3/26/91  Cheung, Heffner,
                                                                                                         Smith
----------------------------------------------------------------------------------------------------------------------------
5,029,176   Monolithic multiple-wavelength laser array                                          7/2/91   Chang-Hasnain
----------------------------------------------------------------------------------------------------------------------------
5,031,187   Planar array of vertical-cavity, surface-emitting lasers                            7/9/91   Orenstein, Von
                                                                                                         Lehmen
----------------------------------------------------------------------------------------------------------------------------
5,034,344   Method of making a surface emitting semiconductor laser                             7/23/91  Jewell, Scherer
----------------------------------------------------------------------------------------------------------------------------
5,034,958   Front-surface emitting diode laser                                                  7/23/91  Kwon, Yoo
----------------------------------------------------------------------------------------------------------------------------
5,040,876   Liquid crystal light modulators with asymmetrical interfaces                        8/20/91  Patel, Lee
----------------------------------------------------------------------------------------------------------------------------
5,068,749   Electronically tunable polarization-independent liquid crystal optical              11/26/91 Patel
            filter
----------------------------------------------------------------------------------------------------------------------------
5,111,231   Dual-polarization liquid crystal etalon filter                                      5/5/92   Patel
----------------------------------------------------------------------------------------------------------------------------
5,113,275   Temperature compensation of liquid-crystal etalon filters                           5/12/92  Patel, Wullert
----------------------------------------------------------------------------------------------------------------------------
5,132,824   Liquid -crystal modulator array                                                     7/21/92  Patel, Weiner
----------------------------------------------------------------------------------------------------------------------------
5,133,029   Adiabatic polarization splitter                                                     7/21/92  Baran
----------------------------------------------------------------------------------------------------------------------------
5,150,236   Tunable Liquid Crystal Etalon Filter                                                9/22/92  Patel
----------------------------------------------------------------------------------------------------------------------------
5,159,481   Polarization scrambler for polarization-sensitive optical devices                   10/27/92 Maeda
----------------------------------------------------------------------------------------------------------------------------
5,172,257   Twisted Ferroelectric liquid crystal modulator for providing gray scale             12/15/92 Patel
----------------------------------------------------------------------------------------------------------------------------
5,173,794   Wavelength division multiplexing using a tunable acousto-optic filter               12/22/92 Cheung, Choy
----------------------------------------------------------------------------------------------------------------------------
5,177,634   High Gain Limiting Erbium-Doped Fiber Amplifier with Wide Dynamic Range             1/5/93   Way
----------------------------------------------------------------------------------------------------------------------------
5,179,548   Self-healing bidirectional logical-ring network using crossconnects                 1/12/93  Sandesara
----------------------------------------------------------------------------------------------------------------------------
5,218,604   Dual-hubbed arrangement to provide a protected ring interconnection                 6/8/93   Sosnosky
----------------------------------------------------------------------------------------------------------------------------
5,218,653   Polarization converter with apodized acoustic waveguide                             6/8/93   Johnson, Smith
----------------------------------------------------------------------------------------------------------------------------
5,221,983   Passive Photonic loop architecture employing wavelength multiplexing                6/22/93  Wagner
----------------------------------------------------------------------------------------------------------------------------
5,327,427   Self-healing meshed network using logical ring structures                           7/5/94   Sandesara
----------------------------------------------------------------------------------------------------------------------------
5,351,262   Multi-stripe array grating integrated cavity laser                                  9/27/94  Poguntke, Soole
----------------------------------------------------------------------------------------------------------------------------
5,400,171   Acousto-optic filter with near-ideal bandpass characteristics                       3/21/95  Song
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -44-
<PAGE>

<TABLE>
<S>         <C>                                                                                 <C>      <C>
----------------------------------------------------------------------------------------------------------------------------
5,442,623   Passive protected self healing ring network                                         8/15/95  Wu
----------------------------------------------------------------------------------------------------------------------------
5,446,807   Passband-flattened acousto-optic polarization converter                             8/29/95  Baran, d'Alessandro
----------------------------------------------------------------------------------------------------------------------------
5,455,877   Multi-channel wavelength-routing switch using acousto-optic polarization            10/3/95  Baran, Jackel
            converters
----------------------------------------------------------------------------------------------------------------------------
5,495,360   1.5 micrometers wavelength asymmetric Fabry-Perot modulator with negative chirp     2/27/96  Yoo
----------------------------------------------------------------------------------------------------------------------------
5,701,168   Inverse twisted and super-twisted nematic liquid crystal device                     12/23/97 Patel
----------------------------------------------------------------------------------------------------------------------------
5,732,179   Birefringence-free semiconductor waveguide                                          3/24/98  Caneau, Song, Soole
----------------------------------------------------------------------------------------------------------------------------
5,748,811   Optical Switch                                                                      5/5/98   Amersfoort, Soole
----------------------------------------------------------------------------------------------------------------------------
5,777,763   In-line optical wavelength reference and control module                             7/7/98   Tomlinson III
----------------------------------------------------------------------------------------------------------------------------
5,793,745   Bundled protection switching in a wide area network background of the               8/11/98  Manchester
            invention
----------------------------------------------------------------------------------------------------------------------------
5,802,232   Bonded structure with portions of differing crystalographic orientations,           9/1/98   Bhat
            particularly useful as a non linear optical waveguide
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

APPLICATIONS:

-------------------------------------------------------------------------
Application No. Title                      Date    Inventors
-------------------------------------------------------------------------
 08/926,332     Hitless Reconfiguration    9/5/97  Bala, Chang, Ellinas,
                of a Wavelength Division           Post, Shen, Wei
                Multiplexed Optical
                Communication Network
-------------------------------------------------------------------------
 09/088,977     Centralized Wavelength     6/2/98  Anderson
                Distribution for Dense
                Wavelength Division
                Multiplexed Systems
-------------------------------------------------------------------------
 09/156,715     Detecting Fiber Cuts in a          Richards, Jackel,
                WDM Ring with Optical              Antoniades, Xin
                Protection Switching
-------------------------------------------------------------------------

End of Exhibit I
----------------

                                      -45-<PAGE>

                                                                   EXHIBIT 10.14

Note: Redacted portions have been marked with (***). The redacted portions are
subject to a request for confidential treatment that has been filed with the
Securities and Exchange Commission.

                             Procurement Agreement

                                    between

                       Qwest Communications Corporation

                                      and

                                 Tellium, Inc.
<PAGE>

                               TABLE OF CONTENTS

                                     -ii-
<PAGE>

AGREEMENT

     This procurement agreement is made and entered into by and between Tellium
("Supplier"), a Delaware corporation, with a place of business at 2 Crescent
Place, Oceanport, NJ 07757, and Qwest Communications Corporation, a Delaware
corporation, having its principal offices and place of business at 555
Seventeenth Street, Suite 1000, Denver, Colorado 80202 ("Qwest") (Supplier and
                                                         -----
Qwest each being referred to herein as a "Party" and collectively as the
                                          -----
"Parties").
 -------

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
promises and covenants hereinafter expressed, the Parties hereto agree as
follows:

1.   DEFINITIONS

     1.1  The terms used in this Agreement shall have their normal or common
          meaning, except that in addition to terms defined at other places in
          this Agreement, the following terms shall have the following meanings
          for the purposes of this Agreement, the Schedules and any attachments
          thereto:

          (a)  "Affiliate" means (i) any individual, corporation, partnership,
                ---------
               joint venture, limited liability company, limited liability
               partnership, practice, association, joint stock company, trust,
               unincorporated organization or other venture or business vehicle
               (each an "Entity") in which a Party owns a (***) or greater
                         ------
               equity interest; (ii) any Entity which, directly or indirectly,
               is in control of, is controlled by or is under common control
               with a Party, as applicable, after applying the attribution rules
               of Section 318 of the Internal Revenue Code; or (iii) any other
               Entity agreed by the Parties.  For the purposes of this
               Agreement, control of an Entity ("Control") shall include the
                                                 -------
               power, directly or indirectly, whether or not exercised (i) to
               vote (***) (or such lesser percentage as is the maximum allowed
               to be owned by a foreign corporation in a particular
               jurisdiction) or more of the securities or other interests having
               ordinary voting power for the election of directors or other
               managing authority of such Entity; or (ii) to direct or cause the
               direction of the management or policies of such Entity, whether
               through ownership of voting securities, partnership interest or
               equity, by contract or otherwise.  Within forty-five (45) days of
               the Effective Date, the Parties will amend this Agreement by the
               addition of Schedule A (Approved Affiliates) containing the names
               of Qwest Affiliates who have been designated by Qwest and who
               have met the credit standards referenced in Section 2.4 (the
               "Approved Affiliates").

                                      -1-
<PAGE>

          (b)  "Agreement" means this agreement including the schedules
                ---------
               described in Section 2.5 and attached hereto (the "Schedules").
                                                                  ---------

          (c)  "Class A Change" means a modification, revision, replacement,
                --------------
               correction or release of existing Supplier manufactured Product
               (other than an ISU or an Enhancement)  to remedy a nonconformance
               to the Specifications required to correct design defects of a
               type that results in electrical or mechanical inoperative
               conditions or unsatisfactory operating conditions, or which is
               recommended to enhance safety, provided that the Product
               incorporating such change, is at least as equally compatible with
               Qwest's network components and other Supplier Products as the
               same Product prior to incorporation of such change.

          (d)  "Current Release" means the latest Version or Release of the
                ---------------
               Software which has been approved by Supplier for commercial use.

          (e)  "Days" or "days" means calendar days, unless otherwise provided
                ----     -----
               herein.

          (f)  "Documentation" means the user, technical and operating manuals,
                -------------
               including the operating instructions, guides and manuals,
               necessary to enable Qwest properly to use and maintain the
               Products.

          (g)  "Effective Date" means September 1, 2000.
                --------------

          (h)  "Equipment" means hardware, equipment, embedded software
                ---------
               (including, without limitation, firmware) and all physical
               components, including cabling, required by this Agreement to be
               provided by Supplier.

          (i)  "Enhancement" means any modification or revision to the Software
                -----------
               that Qwest may license at its option when offered by the Supplier
               in the future and which (i) substantially improves existing
               functions or features, including functions and features for which
               Qwest has already been granted a license, or (ii) adds new
               functions or features.

          (j)  "Form, Fit or Function" shall have the following meaning.  "Form"
                ---------------------
               means shape; "Fit" means physical size or mounting arrangement
               (e.g., electrical or mechanical connections); and "Function"
               means features and capabilities.

          (k)  "Incremental Software Update" or "ISU" means any modification
                ---------------------------      ---

                                      -2-
<PAGE>

               or revision to the Software, other than Enhancements, that (i)
               corrects Software Nonconformities or other errors; (ii) supports
               new releases of third party operating systems with which the
               Software is designed to operate; (iii) supports new Equipment;,
               (iv) improves the performance of the Software; or (v) provides
               other updates and corrections. If a modification or revision
               described in clause (ii), (iii) or (iv) above adds new functions
               or features or substantially improves the network performance, it
               shall be deemed to be an Enhancement with respect to those new
               functions and features.

          (l)  "Installation Site" means the building, complex of buildings or
                -----------------
               remote site at which any of the Products are installed.

          (m)  "Intellectual Property Rights" mean all forms of intellectual
                ----------------------------
               property rights and protections including, without limitation:

               (i)   All right, title and interest in and to all letters patent
                     and all filed, pending or potential applications for
                     letters patent, including any reissue, reexamination,
                     division, continuation or continuation-in-part applications
                     throughout the world now or hereafter filed;

               (ii)  All right, title and interest in and to all trade secrets,
                     and all trade secret rights and equivalent rights arising
                     under the common law, state law, federal law and laws of
                     foreign countries;

               (iii) All right, title and interest in and to all mask works,
                     copyrights, other literary property or author's rights,
                     whether or not protected by copyright or as a mask work,
                     arising under common law, state law, federal law and laws
                     of foreign countries; and

               (iv)  All right, title and interest in and to all proprietary
                     indicia, trademarks, trade names, service marks, symbols,
                     trade dress, logos and/or brand names protected under
                     common law, state law, federal law and laws of foreign
                     countries.

          (n)  "Network Compatible" or "Network Compatibility" with respect to a
                ------------------      ---------------------
               Product means that (i) the Product will comply with the
               applicable American National Standards Institute ("ANSI") and
                                                                  ----
               International Standards Organization ("ISO") standards in effect
                                                      ---
               on the date that Qwest issues the Purchase Order, and any other

                                      -3-
<PAGE>

               standards agreed by the Parties in writing; (ii) the Product can
               be operationally deployed in Qwest's network without requiring
               the replacement of any Supplier equipment; and (iii) the Product
               will be fully compatible and will inter-operate with other
               Supplier Products provided under this Agreement.  Qwest in its
               sole discretion may waive the foregoing compatibility
               requirements for the purpose of deploying new technology offered
               by Supplier during the Term.

          (o)  "Nonconformity" means an instance of failure of a Product to be
                -------------
               Operative.

          (p)  "Supplier Personnel" mean any employees, trainers, or other
                ------------------
               support personnel provided by Supplier under this Agreement
               whether or not employed by Supplier (to the extent that such are
               permitted elsewhere under this Agreement).  Supplier shall be
               performing under this Agreement at all times as an independent
               contractor to Qwest, and the Supplier Personnel shall not be
               considered as employees or agents of Qwest.

          (q)  "Object Code" means machine-readable computer instructions that
                -----------
               can be executed by a computer.

          (r)  "Operating Platform" means the computer equipment, hardware and
                ------------------
               operating system, which execute the Object Code and on which the
               Software runs.

          (s)  "Operative" means (i) conforming in all respects to the
                ---------
               Specifications, the requirements of this Agreement and the
               applicable Purchase Orders in effect at the time Supplier accepts
               the Purchase Order, and (ii) Network Compatible.

          (t)  "Products" mean the Equipment, Software, and Documentation,
                --------
               including any part thereof, described in the Schedules, which
               this Agreement requires Supplier to furnish or that Supplier
               furnishes hereunder.  Qwest and Supplier may amend the Schedules
               by written agreement to include other products offered for sale
               by Supplier.

          (u)  "Program Manager" means the senior manager of a Party who shall
                ---------------
               have overall responsibility for the day-to-day management and
               administration of this Agreement and who shall work together with
               the other Party's Program Manager to facilitate an efficient
               delivery of Products and Services.

                                      -4-
<PAGE>

          (v)  "Purchase Order" means the written instrument described in
                --------------
               Section 7, a form of which is attached hereto as Schedule B,
                                                                ----------
               under which Qwest orders and Supplier delivers Products or
               Services under this Agreement.

          (w)  "Release" means any revision, modification, replacement, or
                -------
               correction to the Software, including an Enhancement or ISU, that
               Supplier makes available to any of its customers for use.

          (x)  "Representative" means, with respect to a Party, employees,
                --------------
               officers, agents or advisors of such Party.

          (y)  "Segment" means a continuous route within the Qwest network.
                -------

          (z)  "Services" mean work performed and labor provided by Supplier,
                --------
               including, but not limited to, design, engineering and
               implementation of Products, Software testing, warranty, technical
               support, training and similar activities.

          (aa) "Software" means any software, including Object Code and Source
                --------
               Code that is delivered to Qwest under this Agreement, inclusive
               of the Supplier Intellectual Property Rights, whether or not the
               subject of any patent or copyright, issued or pending.  Software
               may include programs used to create, enhance, test or maintain
               any Product delivered under this Agreement.  Software includes
               all Releases and Versions.

          (bb) "Source Code" means the human-readable code from which a computer
                -----------
               can compile or assemble the Object Code of the Software, together
               with a description of the procedure for generating the Object
               Code.

          (cc) "Specifications" mean the functional, performance, design,
                --------------
               operational, and physical characteristics of a Product or System,
               as described in the applicable ANSI and ISO standards and
               Supplier proposal.  If an ANSI or ISO standard is not available
               for a new Product, the formal specification developed by Supplier
               and provided to Qwest shall be used.

          (dd) "System" means an Operative combination of Products designed,
                ------
               engineered, furnished, installed or implemented by Supplier under
               this Agreement.

          (ee) "Turn-Over"  means, with respect to a delivered Product, the
                ---------
               acceptance procedure set forth in Section 12 has been completed.

                                      -5-
<PAGE>

          (ff) "Version" means a Release of Software intended for use with a
                -------
               particular make and model of computer or a particular operating
               system.

          (gg) "Warranty Period" means the time period specified in Section 17.
                ---------------

     1.2  Additional definitions appear elsewhere in the recitals and subsequent
          Sections of this Agreement.

2.   SCOPE

     2.1  The initial term of this Agreement ("Initial Term") commences on the
                                               ------------
          Effective Date and continues until December 31, 2003 unless earlier
          terminated or extended in accordance with other provisions of this
          Agreement or unless extended in writing by the Parties..  At its
          option, Qwest may extend the Initial Term for a period of up to six
          (6) months (the "Extended Term") by written notice to Supplier prior
          to the expiration date of this Agreement (the Extended Term, if any,
          together with the Initial Term, are hereinafter the "Term").

     2.2  (a)  Subject to the terms and conditions of this Agreement, including
          its Schedules, during the Initial Term, Qwest will make purchases of
          Products under this Agreement as follows: (a) during the period from
          the (***) until (***) Qwest will make purchases under this Agreement
          in an aggregate amount of not less than (***) (the "First Milestone"),
          (b) during the period from January 1, 2002 until December 31, 2002,
          Qwest will make purchases under this Agreement in an aggregate amount
          of not less than (***) (the "Second Milestone") and (c) during the
          period from (***) until (***), Qwest will make purchases under this
          Agreement in an aggregate amount of not less than (***) ( the "Third
          Milestone," and together with First Milestone and Second Milestone,
          the "Commitment"). The above amounts are net of any discounts Qwest
          receives on the price of the Products.

          (b)  Supplier will complete development and deployment of the products
          and deliverables as set forth in the attached Schedule J.  If Supplier
          (a) fails to meet any purchase order delivery date due to a delay or
          failure to have the products described  in Schedule J available for
          successful general availability as of their corresponding delivery
          dates, or (b) otherwise fails to have the products described  in
          Schedule J available for successful general availability as of their
          corresponding delivery dates, the Parties agree to negotiate in good
          faith and make appropriate amendments to the Initial Term, the outside
          dates of the Milestones or an appropriate reduction in the Commitment.
          If such negotiations do not result in

                                      -6-
<PAGE>

          mutually acceptable resolution, either party may terminate this
          Agreement for cause following completion of the dispute resolution
          process as set forth in Section 25. When used in this Section 2.2(b)
          and in Schedule J, "available for successful general availability"
          shall mean that such products have successfully completed tests (***)
          to the (***), in which Qwest shall be entitled to participate, and are
          available for general availability on Tellium's general price list.

          (c)  Subject to Section 21.3, all purchases of Products or Services
          from Supplier and its Affiliates by Qwest and Qwest Affiliates will be
          credited toward the Commitment. Any purchases made in excess of the
          First Milestone amount will be credited towards the Second and Third
          Milestone amounts. Any purchases in excess of Second Milestone amount
          will be credited towards the Third Milestone amount.

     2.3  This Agreement shall apply to the transactions in which Supplier
          furnishes the Products or Services described in the Schedules to Qwest
          during the Term.

     2.4  Approved Affiliates may issue a Purchase Orders under this Agreement.
          Affiliates who are not Approved Affiliates may become Approved
          Affiliates if they (i) (***), which fulfillment of (***) will
          determine within (***) after notice from (***) and (ii) (***) and
          (***) of this Agreement. If Supplier has not provided written
          acknowledgement of an Affiliate's failure to meet such credit
          standards within such (***) period, the Affiliate shall be deemed to
          have been authorized to purchase under this Agreement and shall be
          deemed an Approved Affiliate.  If there has been a transfer of (***)
          or more of the assets of any Approved Affiliate who (i) is seeking to
          place an new Purchase Order under this Agreement or (ii) has an
          outstanding Purchase Order of (***) or more, Supplier shall have the
          right to (***) Purchase Order and the right to review such Approved
          Affiliate's (***) as such.  If, upon review, the Approved Affiliate no
          longer qualifies for approval pursuant to this Section, Supplier shall
          have the right to (***), and it shall (***) to place Purchase Orders
          under this Agreement without the satisfaction of another (***).

     2.5  The following Schedules attached hereto are an integral part of this
          Agreement and are incorporated herein by reference.

          A.   Approved Affiliates
          B.   Form Purchase Order
          C.   Product Price List
          D.   Purchase Order Confirmation Procedure
          E.   Training
          F.   (***)
          G.   Technical Support Services

                                      -7-
<PAGE>

          H.   Tellium Repair and Return Policy
          I.   Software Maintenance Agreement
          J.   (***)

3.   SUPPLIER OBLIGATIONS

     3.1  Supplier shall perform all Services and deliver all Products necessary
          to fulfill the requirements of this Agreement and shall perform all
          work in a professional and workmanlike manner, in accordance with all
          requirements, acceptance criteria and Specifications of this Agreement
          and the warranties provided hereunder.  Among its obligations,
          Supplier shall:

          (a)  complete all tasks required by an accepted Purchase Order by
               providing all necessary resources, personnel, materials and
               equipment;

          (b)  adhere to agreed delivery dates;

          (c)  supervise and manage the overall Supplier effort under each
               Purchase Order and this Agreement and coordinate its efforts with
               the Qwest Program Manager; and

          (d)  provide competent personnel of sufficient experience and
               expertise to fulfill the goals of this Agreement.

     3.2  In addition to other requirements contained in this Agreement,
          Supplier will consider the following Qwest objectives in its delivery
          of Products and Services under this Agreement:

          (a)  ensuring a smooth transition from the existing products to new
               Products provided hereunder as possible;

          (b)  training; and

          (c)  using an orderly approach for any significant implementation of
               new Products.

     3.3  Supplier is responsible for providing qualified personnel in the
          quantities and of the experience necessary to fulfill the requirements
          of this Agreement. When requested by Qwest, Supplier shall provide the
          names of Supplier Personnel providing Services at Qwest sites.

4.   QWEST OBLIGATIONS

                                      -8-
<PAGE>

     4.1  By the end of the third quarter of each calendar year, Qwest will
          provide Supplier with a forecast of Qwest's estimated Product
          requirements for the next calendar year (each a "Forecast").  Qwest
          will update this Forecast each quarter and when significant changes
          occur.  The Forecast shall be for planning purposes only and shall not
          represent Qwest's commitment to purchase any or all such Products or
          create any other obligation whatsoever by Qwest.

     4.2  Qwest agrees that all Supplier Personnel who are approved in writing
          by Qwest to be involved in any effort under this Agreement will be
          provided reasonable access to Qwest's premises during mutually agreed
          times as necessary. Supplier Personnel shall comply with site and
          security regulations specified by Qwest.

     4.3  For all Products not on Supplier's price list ("Non-Price List
          Products"), Qwest shall issue a written request for proposal ("RFP")
          to Supplier no later than (***) prior to the required equipment ship
          date for Non-Price List Products included in the Forecast.  Non-
          forecasted Non-Price List Products equipment will require (***)
          advance notice to Supplier.  Supplier's sales engineering shall issue
          a written proposal to Qwest for Product purchases within two weeks of
          receipt of the RFP, or a reasonable time thereafter as necessary to
          complete the proposal.

5.   GOVERNANCE

     5.1  Meetings.
          --------

     By October, 1, 2000, the Parties will mutually determine appropriate
     intervals for periodic meetings to be held between representatives of Qwest
     and Supplier.  At a minimum, these meetings will include the following:

          (a)  a weekly meeting between the respective project management teams;

          (b)  a monthly management meeting to review Supplier's progress under
               open Purchase Orders, project schedules, financial and
               administrative matters and such other matters as appropriate; and

          (c)  a quarterly executive review meeting to review relevant contract
               and performance issues.

     Each Party's Program Manager or individual designated by the Program
     Manager will attend each meeting.

                                      -9-
<PAGE>

     5.2  Personnel.
          ---------

     Qwest reserves the right to require replacement of any Supplier's employee
     or contractor performing work for Supplier under this Agreement if Qwest is
     dissatisfied with the performance of that individual and determines that
     the continued assignment of such individual is not in the best interest of
     Qwest.  Qwest shall give Supplier written notice requesting that the
     individual be replaced (***).  Supplier shall replace such individual with
     a person of suitable ability and qualifications within (***) from the
     request or such additional time period as may be reasonably required under
     the circumstances.

     5.3  Reports.
          -------

     Supplier shall provide to Qwest written progress reports as agreed by the
     Parties, on at least a weekly basis, delivered by electronic mail followed
     by a paper copy to Qwest's designated representative.  Progress reports
     shall include:  (i) the status of delivery under all open Purchase Orders
     for Products; (ii) items completed during the reporting period; (iii) items
     to be completed within the next reporting period; (iv) open action items;
     and (v) any other action items required by Qwest, listing the party
     responsible for such actions.

6.   PRICING

     6.1  Qwest will receive incremental discounts off the list price of the
          Products set forth in Schedule C (the "List Price") based upon its
          aggregate purchases of Products under this Agreement (the "Aggregate
          Purchase Amount") as follows:

          (a)  When the Aggregate Purchase Amount is less than or equal to
               (***), Qwest shall receive a (***) discount off List Price for
               such increment; and

          (b)  When the Aggregate Purchase Amount is greater than (***) but less
               than or equal to (***), Qwest shall receive a (***) discount off
               List Price for such increment; and

          (c)  When the Aggregate Purchase Amount is greater than (***) but less
               than or equal to (***), Qwest shall receive a (***) discount off
               List Price for such increment; and

          (d)  When the Aggregate Purchase Amount is greater than (***) but less
               than or equal to (***), Qwest shall receive a (***) discount off
               List Price for such increment; and

                                      -10-
<PAGE>

          (e)  When the Aggregate Purchase Amount is greater than (***) but less
               than or equal to (***), Qwest shall receive a (***) discount off
               List Price for such increment; and

          (f)  When the Aggregate Purchase Amount is greater than (***), Qwest
               shall receive a (***) discount off List Price for such increment.

     All above amounts are net of Qwest's discount.

     An illustration of how such discount structure works is as follows.

     For purchases up to (***), Qwest shall receive a (***) discount on the
     (***) of Product and a (***) discount on the additional (***) of Product.
     Total net Product purchased would be (***).

7.   ORDERING

     7.1  (a) Qwest (or an Approved Affiliate) shall issue Purchase Orders, a
          form of which is attached hereto as Schedule B, to acquire all
                                              -----------
          Products and Services under this Agreement.  All Purchase Orders must
          be submitted (***) prior to the delivery date designated in the
          Purchase Order (with respect to (i), below) or as agreed upon by the
          Parties (with respect to (ii), below) (the "Order By Date"). Upon
          request by Qwest, the Parties will in good faith discuss a shorter
          period for Purchase Order submission.

          (i) For all Purchase Orders less than or equal to (***) of the
          Forecast amount which are submitted prior to the Order By Date,
          Supplier agrees to be bound by the designated delivery date.

          (ii) For all Purchase Orders that are in excess of (***) of  the
          Forecast or are submitted after the Order By Date, (***) will (***) on
          the (***).

     7.2  Supplier shall confirm and accept the Purchase Order in writing in
          accordance with Schedule D at which point the Purchase Order shall
                          ----------
          become a binding commitment.  Subject to Section 7.1,  Supplier agrees
          to accept all Purchase Orders issued by Qwest under this Agreement
          provided that such Purchase Orders conform with the requirements of
          this Agreement.

     7.3  Any changes to a Purchase Order shall be made in writing.

     7.4  All Purchase Orders issued hereunder by Qwest or the Approved
          Affiliates shall reference this Agreement and shall be deemed to
          incorporate and be governed solely by the terms and conditions set
          forth herein.  Any changes to the terms and conditions of the
          Agreement contained in any Purchase

                                      -11-
<PAGE>

          Order or Supplier's written acknowledgement thereof shall have no
          force or effect.

     7.4  Approved Affiliates may purchase Products and Services under this
          Agreement, provided that the Approved Affiliates agree to be bound by
          the applicable terms and conditions of this Agreement.

8.   DELIVERY AND SHIPMENT

     8.1  Supplier shall deliver Products as required under this Agreement to
          Qwest or Approved Affiliates (as applicable) at the locations and at
          the times specified by Qwest or Approved Affiliates (as applicable),
          and agreed to by Supplier in an accepted Purchase Order, this
          Agreement or as otherwise agreed in writing by the Parties.  For
          purposes of this Section 8, "Buyer" shall mean Qwest or its Approved
          Affiliate, as applicable.  Supplier shall deliver all Products and
          Services at the designated location in a timely manner.

     8.2  Supplier shall ship all Products, freight prepaid, FOB destination
          designated in the Purchase Order or to such other location as the
          Parties may agree ("Destination").  The method of shipment shall be
                              -----------
          consistent with the nature of the Products and hazards of
          transportation.  Risk of loss for all Products ordered in accordance
          with this Agreement shall pass to Buyer upon delivery by Supplier at
          the Destination except loss or damage attributable to the Supplier's
          fault or gross negligence.  Such loss, damage, or destruction shall
          not release Supplier from any obligation hereunder.  Title to Products
          (excluding Software) shall pass to Buyer upon delivery to the
          Destination.  Supplier shall convey good title, free from any claim or
          encumbrance, for all Products (excluding Software) delivered to Buyer
          under this Agreement.  Supplier will pack the Products purchased
          hereunder for transport in accordance with its commercial standards
          and will deliver the Products to a carrier of the mode of
          transportation selected by Supplier unless otherwise agreed upon in
          writing by the Parties.

     8.3  If Supplier fails to meet any agreed schedule, Buyer, without limiting
          its other rights or remedies as may exist, may direct expedited
          routing of Products and any excess costs incurred thereby shall be
          paid by Supplier unless otherwise agreed in writing by the Parties.
          Buyer shall not be liable for Supplier's commitments or production
          arrangements in excess of the amount, or in advance of the time,
          necessary to meet Buyer's delivery schedule.  Delivery shall not occur
          (***) in advance of the scheduled date of delivery unless otherwise
          agreed in a signed writing by Supplier and Buyer.  For delivery to new
          sites, such advance delivery shall not be

                                      -12-
<PAGE>

          allowed, except as set forth in a signed writing executed by Buyer. If
          delivery occurs prior to the period authorized above and designated
          storage has not already been established by Supplier, Buyer may (i)
          return delivered items at Supplier's expense for proper delivery, or
          (ii) place delivered items in storage at Supplier's expense until the
          scheduled date of delivery.

     8.4  The Parties agree that for all shipments that otherwise meet the
          designated delivery dates (a) any failure to supply all Products
          ordered in a single shipment or (b) any partial shipment or delivery
          of an Order in installments shall not constitute a breach of this
          Agreement provided that Supplier has received Buyer's prior written
          approval of the same, such approval not to be unreasonably withheld.

     8.5  Performance Incentives

          (a)  Subject to Section 8.4, for accepted Purchase Orders of Products
               with an aggregate value of (***) or more, Supplier and Qwest
               agree that it may be difficult, if not impossible, to accurately
               determine the amount of damages that Qwest may incur if Supplier
               fails to deliver the Products as scheduled.  Accordingly, if
               delivery has not occurred with respect to any Product, Segment or
               System (***) of a Forecast as of the scheduled date, in addition
               to its other rights and remedies hereunder, Buyer shall be
               entitled to daily performance incentives in a specified and
               predetermined amount of (***) of the total price of the affected
               Product, Segment or System, per day late, up to a maximum of
               (***) of total price of the Product, Segment or System
               ("Performance Incentive").
                -----------------------

          (b)  Buyer shall not assess Performance Incentives to the extent that
               Supplier has been delayed by Buyer not fulfilling its obligations
               described in Section 4.

          (c)  Buyer may in its sole discretion by written notice to Supplier
               (a) unilaterally delay the scheduled delivery date of any Product
               or Service or (b) cancel or suspend delivery of any Product or
               Service ordered under this Agreement.  Such unilateral delay,
               cancellation or suspension shall be without penalty or cost
               provided that Buyer gives written notice to Supplier at least
               (***) prior to the scheduled shipping date of the affected
               Product or the scheduled delivery date of the affected Service.
               If a delay directed by Buyer lasts more than (***) beyond the
               scheduled delivery date of the Product, or a cancellation
               directed by Buyer occurs within (***) of the scheduled shipping
               date of the Product, Buyer agrees to pay

                                      -13-
<PAGE>

               Supplier for the actual restocking costs it incurs as a result of
               the delay or cancellation, not (***) of the (***) of the affected
               Product. The foregoing shall be Supplier's sole remedy for delay,
               cancellation or suspension of the delivery of a Product or
               Service by Buyer.

     8.6  Equipment Tracking Data.  Supplier shall provide Qwest with quarterly
          reports containing the following information in a jointly developed
          format.  The reports shall contain Equipment information, including:
          (1) a description of the Equipment; (2) Supplier part number; (3)
          Equipment destination by building (final); (4) shipping date; and (5)
          Supplier serial number.

     8.7  In the event that Qwest installs a bar coding system for its fixed
          assets, Supplier shall apply a Qwest asset tag (to be supplied by
          Qwest) at either the manufacturing site or at the point of shipment
          for the Equipment in a manner that allows Qwest to easily read the
          asset tag.  Supplier may charge an agreed fee to cover any reasonable
          Supplier's costs associated with such bar coding system.  A joint
          meeting will be held between Supplier and Qwest within thirty (30)
          days of contract execution to further define these requirements and
          fees (if any).

9.   PAYMENT TERMS

     9.1  Subject to Section 12, Supplier shall invoice Qwest for Products upon
          shipment (and shall invoice Approved Affiliates for shipment to
          Approved Affiliates) and Qwest (or the Approved Affiliates) shall pay
          to Supplier the price of each shipment (including any prepaid
          transportation and/or insurance) within (***) from the date of
          Acceptance. For all other Services (including Services provided to any
          Approved Affiliate), Supplier shall invoice Qwest (or the Approved
          Affiliate, as applicable) upon Acceptance of the Services.  Charges
          for any other amounts payable pursuant to this Agreement shall be paid
          by Qwest within (***) from the date of invoice.  All payments shall be
          made in U.S. Dollars.  The date of the payment shall be deemed to be
          the date (***) is (***).

     9.2  Qwest is not required to pay invoiced amounts disputed in good faith
          until such dispute is resolved; provided, however, Qwest shall pay
          that (***) of a (***) which is (***) unless it is (***) to (***).
          Once the dispute is resolved, the invoice shall be paid within (***)
          following such resolution, or in the time frame set out in Section
          9.1, whichever is greater.

                                      -14-
<PAGE>

     9.4  Credits owed to Qwest under this Agreement, may be applied against
          amounts owed to Supplier under this Agreement, or at Qwest's request
          for amounts other than Management Discounts, retroactive discounts
          paid to Qwest within (***) following such request.

     9.5  Payment shall not be considered Acceptance of any Products or Services
          (which Acceptance shall be as set forth in Section (12).  Supplier
          shall provide Equipment, Software and Services without interruption in
          the event of disputes concerning an invoice amount provided that the
          Parties are working together in good faith to resolve the dispute.

10.  PRODUCT REQUIREMENTS

     The following provision shall apply to all Products provided under this
     Agreement.

     10.1 Documentation.
          -------------

          (a)  Supplier shall furnish to Qwest one set of Documentation per
               Installation Site on CD ROM, and a reasonable number of complete
               sets in both CD ROM and paper form for Qwest engineering staff
               for use in the operation and ongoing maintenance of the Products.
               Supplier shall deliver reasonable Documentation to allow Qwest to
               install and use each ISU and Enhancement.

          (b)  Qwest may copy the Documentation subject to the rights and
               restrictions in this Agreement and for Qwest's internal use only.
               All such Documentation is to be treated in accordance with the
               terms of this Agreement.  Updates to Documentation shall be
               provided at no charge during the Warranty Period.

          (c)  The Documentation shall describe fully the proper procedure for
               using the Products and provide sufficient information to enable
               Qwest to operate and maintain the Products.

     10.2 Equipment.
          ---------

          (a)  Supplier shall make available to Qwest sufficient repair and
               spare parts for each Product furnished under this Agreement to
               keep such Product Operative for a period of (***) from the date
               of last shipment of the Product.  (***) for (***) shall not
               exceed (***) for (***) from the (***) of (***).  After such
               period, the (***) for such (***) shall be at (***).  Supplier, at
               its option and expense, may replace Products for which repair
               parts are no longer available

                                      -15-
<PAGE>

               with functionally equivalent Products provided that such products
               are Network Compatible.

          (b)  Supplier shall provide Qwest with written notice of the
               manufacturing discontinuance for any particular Product, and,
               subject to subsection (a) above, shall furnish the repair parts
               to Qwest at the (***) unless furnished during the Warranty Period
               in which case a supply that may be reasonably needed during the
               Warranty Period, and would otherwise be included at no cost
               pursuant to the Warranty provided in Section 17, shall be
               supplied (***).

          (c)  Supplier shall neither provide nor incorporate any Product which
               adversely affects Form, Fit or Function, Network Compatibility,
               interface or interchangeability of Qwest's existing hardware or
               software environment without the prior express written approval
               of Qwest.  Qwest shall notify Supplier if it becomes aware that a
               Product is not Network Compatible.

          (d)  In the event of a Class A Change; Supplier shall provide
               immediate written notice to Qwest and shall proceed promptly to
               make the necessary changes at Supplier's expense per the repair
               and return procedures set forth in Schedule H, Supplier shall
                                                  ----------
               bear all costs and expenses relating to such retrofit or
               replacement and all peripheral equipment and software

          (e)  All changes must be Network Compatible.

                                      -16-
<PAGE>

     10.3 Substitutions and Modifications.
          -------------------------------

          Supplier shall give Qwest (***) advance written notice of any material
          modification in the design or Specifications of the Products supplied
          hereunder to Products previously made available hereunder.  If any
          such modification, which affects the Form, Fit or Function of the
          Products and (i) adversely affects the expected life, operation or
          performance of any Equipment or Software; (ii) causes Qwest to incur
          significant costs (including without limitation a write down of
          equipment or equipment-related assets); (iii)  prevents proper
          operation of equipment in the Qwest network that otherwise meets
          Specifications; or (iv) prevents any Product from meeting the
          applicable Specifications, Qwest shall have the right  to return to
          Supplier such modified Product and Supplier shall have the obligation
          of replacing such modified Product  with compliant Product.  No such
          replacement or substitution shall result in an increased purchase
          price.

     10.4 Incremental Software Updates.
          ----------------------------

          During the Warranty Period and in accordance with Section 13.2,
          Supplier shall offer to Qwest any ISUs contained in a Release or
          Version of the Software at no additional charge when they are made
          available to any of Supplier's other customers or upon a production of
          new Release or Version.  Providing such ISUs shall not relieve Qwest
          of its obligation to pay license fees otherwise due for Enhancements
          used by Qwest.  Qwest shall be responsible for installation of such
          ISUs in the network.  Supplier shall make all Releases available to
          Qwest no later than it makes the same available to any of Supplier's
          other customers.

     10.5 Training.
          --------

          Supplier shall provide the training courses referred to in Schedule E
                                                                     ----------
          at the prices set forth in Schedule C.  Supplier shall provide, at no
                                     ----------
          additional charge, (***) network training seat days ("Seat Days") for
                                                                ---------
          the Term of this Agreement; provided, however, that (***) where the
          training involves teaching trainers how to train other individuals at
          Qwest (hereinafter a "Train The Trainer Seat Day") will count as
                                --------------------------
          (***).  The training will take place at a Supplier training location
          agreed to by the Parties, and will consist of materials developed and
          controlled by Supplier.  All travel and living expenses for the
          training sessions shall be borne by Qwest.  Training in addition to
          that described in this Section 10.5 shall be provided at the then
          current Supplier rates.

                                      -17-
<PAGE>

11.  CHANGES IN THE WORK

     11.1 If Qwest finds there is a need to request that Supplier perform
          services or provide products beyond the scope of this Agreement, then
          (i) Qwest shall submit a proposed amendment to the Schedules or this
          Agreement in writing and (ii) Supplier shall evaluate the impact of
          the proposed change considering cost, schedule and performance as well
          as any impact on the delivery of Products and Services to be provided
          hereunder and shall respond by providing Qwest with a formal proposal.
          The Parties may then further negotiate the proposed amendment or
          incorporate Supplier's proposal by written agreement as an amendment
          to this Agreement.

     11.2 If Supplier finds that there is a need for it to perform services or
          provide products beyond the scope of this Agreement, then Supplier
          shall submit a formal proposal detailing the proposed amendment in
          writing and evaluating the impact of the proposed amendment on cost,
          schedule and performance as well as any on the delivery of Products
          and Services to be provided hereunder.  The Parties may then further
          negotiate the proposed amendment or incorporate Supplier's proposal by
          written agreement as an amendment to this Agreement.

     11.3 Any additional charges authorized by Qwest in writing, not contained
          in any Purchase Order or Schedule, shall reflect Supplier time and
          materials (and Supplier subcontractor time and materials) as stated in
          Schedule C or as otherwise agreed by the Parties in writing.
          ----------

     11.4 Claims for Delay.
          ----------------

          (a)  If Supplier wishes to request an extension in the delivery date
               for Products provided in a Purchase Order, written request shall
               be given to Qwest at the time the delay begins, or within (***)
               thereafter if the resulting delay was not reasonably foreseeable.
               The request shall state the circumstances of the occurrence, the
               justification for the delay and extension of time, and the
               estimated duration of the delay and extension requested.
               Supplier shall also be obligated to do all in its power to
               mitigate the adverse impact of such delay at no additional cost
               to Qwest.

          (b)  Supplier agrees that it shall not request extensions of time
               resulting from normal inclement weather.

          (c)  An extension of time shall be the sole remedy of Supplier for any
               delay caused by any reason or occurrence.  Subject to Section
               8.5, Supplier acknowledges such extension of time to be its sole

                                      -18-
<PAGE>

               remedy and agrees to make no claim for damages or added charges
               of any sort for delay in the performance of this Agreement or any
               Purchase Order for any reason.  Entitlement to any such extension
               of time shall be subject to compliance with all notice and
               submission requirements imposed by the Agreement concerning such
               claims.

12.  (***) AND ACCEPTANCE

12.1 (***).
     ----------------

          All Products shall be subject to a (***) as set forth in (***) hereto.
          In addition, for Products not certified by Qwest as (***) Accepted,
          Qwest agrees to (***) and (***) a (***) by (***) by (***), such (***)
          to be generally in accordance with (***), and as finally (***) by
          (***). Upon successful completion of the (***) Qwest will (***) in a
          form determined by Qwest, such Products as certified for "Expedited
                                                                    ---------
          Acceptance." Upon receipt of such certification by Qwest, Qwest and
          ----------
          the Approved Affiliates shall have the right to inspect and reject
          such Products for failure to be Network Compatible or other errors for
          a period of (***) from delivery (the "Expedited Inspection Period").
          Such Products shall be deemed to have passed inspection and accepted
          after the expiration of the Expedited Inspection Period, unless Qwest
          or the Approved Affiliate notifies Supplier, during the Expedited
          Inspection Period, of a reasonable cause for rejection of the Products
          due to a failure (***) or other error.

          For all Products that have not been (***) Accepted by Qwest, each
          Approved Affiliate may perform (***). Upon successful completion of
          the (***), such Approved Affiliate (***) that for such Approved
          Affiliate, such Product is certified for Expedited Acceptance. Such
          Approved Affiliate shall then have the right to inspect and reject
          such Product for failure to be Network Compatible for the Expedited
          Inspection Period.

12.2 Acceptance.
     ----------

          For any Products not certified for Expedited Acceptance, Qwest shall
          have the right to inspect and reject such Products for failure to be
          Network Compatible or other errors for a period of (***) from
          scheduled delivery (the "Inspection Period").  Such Products shall be
          deemed to have passed inspection and accepted after the expiration of
          the Inspection Period, unless Qwest notifies Supplier, during the
          Inspection Period, of a

                                      -19-
<PAGE>

          reasonable cause for rejection of the Products due to a failure to be
          Network Compatible or other error. Notwithstanding the foregoing,
          Products will be deemed accepted upon the full (***) for (***) with
          (***) by Qwest, irrespective of Expedited Acceptance status or the
          expiration of the Inspection Period. Any subsequent order of a Product
          that has previously been accepted pursuant to this Section 12.2 (***)
          the (***) in (***).

12.3 Failure of Acceptance.
     ---------------------

          Qwest's payment obligations in Section 9 are contingent upon
          acceptance of the corresponding Product and related Services in
          accordance with Sections 12.1 and 12.2 and (***).  If a Product
          fails to achieve acceptance as provided in Sections 12.1 and 12.2,
          Qwest may return the Product, title to which shall pass to Supplier
          upon delivery to Supplier, and apply amounts paid for such Product, if
          any, and related Services to any unpaid Supplier invoice hereunder
          upon written notice to Supplier, or upon written demand by Qwest,
          Supplier shall repay such amounts, if paid by Qwest, to Qwest.

12.4 New Products.
     ------------

          In the event Supplier develops New Products Supplier will give Qwest
          (***) notice thereof, along with  the expected Specifications therefor
          and pricing and discounts.  Qwest may request that this Agreement be
          amended in order to make the terms of this Agreement applicable to the
          purchase by Qwest of New Products and the Parties shall negotiate in
          good faith the terms of such amendment, including pricing, discounts,
          and delivery schedules, and the conduct by Qwest of a (***) for
          the New Product.  Such (***) shall be substantially similar to
          the (***) described in (***) hereto.  If the (***)
                                 -----
          for the New Product is successful, such New Products will be certified
          for Expedited Acceptance and the terms of this Agreement, as amended
          with respect to the New Product, shall apply to the purchase and sale
          of such new Products.  New Products shall mean Products with material
          changes in previously applicable Specifications, which Specifications
          have not been approved by Qwest.

13.  SOFTWARE

     13.1 License Grant.
          -------------

          Upon delivery of Software hereunder, Supplier grants to Qwest and its
          Affiliates (***) and (***), (for the purposes of this Section, each a

                                      -20-
<PAGE>

          "Licensee") a nonexclusive, irrevocable, perpetual, worldwide license
           --------
          and right to use and make copies of the Software and the Intellectual
          Property Rights for which Qwest has paid Supplier a license fee for
          use solely with the applicable Products so long as Licensee uses such
          Products in  accordance with this Agreement. Enhancements may be
          provided at a later date as set forth in Schedule C.  A "right to use"
          license under the same terms and conditions as set forth in this
          Section 13 for such Enhancement will be effective upon payment by
          Qwest.

     13.2 Releases.
          --------

          Supplier may, from time to time, issue Releases of the Software.  As
          set forth in Section 1 (Definitions), Supplier may classify such
          Release as (i) an Enhancement, (ii) an ISU or (iii) both.  During the
          Warranty Period and the term of any maintenance or support agreement,
          (***) shall (***) with (***) of (***).  Qwest acknowledges that from
          time to time Enhancements may be contained in a Release that have not
          been licensed to Qwest.  Qwest and Supplier shall agree in writing on
          the license fee for Enhancements that Qwest, in its sole discretion,
          decides to use.  Notwithstanding the foregoing, ISUs and Enhancements
          shall not include the cost of any associated hardware that may be
          required to update such ISUs. Qwest shall be responsible for the
          installation of such Releases in the Network.

     13.3 Title.
          -----

          Subject to Section 13.5, Title to the Software described herein shall
          remain with Supplier, or with the various suppliers to Supplier whose
          software or software components are contained in the Software and
          whose rights of ownership are maintained through restrictive
          agreements with Supplier.

     13.4 Limitations of License Grant.
          ----------------------------

          (a)  The Software and Documentation are to be used only by the
               Licensee, for its own business use, and only for the intended use
               of the Software and Documentation (***) and (***) and only in
               connection with Product for which a license fee has been paid.

          (b)  Licensed use is limited to the Software as delivered by Supplier
               to Licensee and does not permit modification or use of any
               modified form of the Software, except for minor user
               modifications or customizations.  Licensee may not duplicate the
               Software, except to make a reasonable number of backup copies of
               the Software for use in the event of Product failure.  If
               duplication (***) for (***)

                                      -21-
<PAGE>

               then (***) shall (***) and (***) to (***) the (***) of (***).

          (c)  The Software and Documentation furnished hereunder are the
               property of Supplier and are to be considered Supplier's
               proprietary information.  Licensee shall not (***) or (***) the
               (***) or (***), or (***) or (***) of (***)), before or after
               termination of this Agreement, except as may be permitted in
               writing by Supplier.  Licensee shall immediately notify Supplier,
               in writing, of any knowledge that any unlicensed party possesses
               the Software or Documentation.  Licensee shall safeguard said
               Software with the same degree of care and diligence as Licensee
               affords to its own similar property.

          (d)  Qwest acknowledges that Software may contain programs that have
               been supplied by, and are proprietary to, third party software
               suppliers.  The terms and conditions of any such third party
               program licenses may be different than the terms herein, and in
               such event, Qwest must agree in writing to such terms prior to
               delivery for such terms to be effective.  Supplier will extend to
               Qwest any rights Supplier may have under any such third party
               licenses

     13.5  Derived Products and Derived Dependent Products.
           -----------------------------------------------

          (a)  Any (i) Qwest (or Qwest Affiliate) (***) from the (***) of the
               (***) and the (***) of (***) by Qwest (ii) Qwest (or Qwest
               Affiliate) (***) or (***); (iii) Qwest (or Qwest Affiliate) (***)
               or (***) of the (***) or (***) Qwest; and (iv) unless otherwise
               set forth in a signed writing by the Parties referencing this
               Section, any portion of a (***) configuration, application or
               arrangement of the Software created by Supplier (either with or
               without Qwest) after a (***) by Qwest therefore shall not be
               considered derived products and shall be distinct in ownership
               from that of the Software as received by Qwest and shall be owned
               by Qwest (and are hereby assigned to Qwest) (collectively, the
               "Qwest Products"). The foregoing (iv) shall not (***) to (***) or
               (***) or (***) and does not (***) in any (***) to (***) of the
               (***) from (***) of any (***) or (***). Any other configuration,
               application, or arrangement of the Software, shall be considered
               a derivative work and shall be the sole and exclusive property of
               Supplier; provided, however, that Supplier may, at its
               discretion, assign or license (***) or (***) not to be
               unreasonably withheld.

          (b)  Any (***) or (***) of (***), which are (***) of the (***) and are

                                      -22-
<PAGE>

               (***) the (***) for (***), shall be considered a derived products
               to which Supplier retains title and ownership and to which
               Licensee is granted an exclusive perpetual, irrevocable,
               worldwide right to use solely in its dependent form, and in
               conjunction with the Software for so long as such Licensee uses
               such Software in accordance with this Agreement.

          (c)  Supplier expressly prohibits, and Licensee agrees to refrain
               from, any attempt by Licensee, Licensee's agent or to permit any
               third party to disassemble, reverse compile, reverse engineer,
               or, in any similar way, expose the actual instruction sequences,
               internal logic, protocols, algorithms or other intellectual
               property represented within the Software, which Supplier
               considers to be its proprietary information and trade secret
               whether or not said intellectual property is included in any
               patent or copyright.  Notwithstanding any other provision of this
               Agreement, any (***), or (***) by Licensee or any other party
               shall not be assigned and shall be deemed the property of
               Supplier, for which no right to use is granted to Licensee herein
               and for which Supplier shall bear no obligations for support.

     13.6 Software Maintenance and Support.
          --------------------------------

          (a)  Supplier shall provide Software technical support services as
               provided in Schedule G.
                           ----------

          (b)  Notice to Qwest of corrections or additions, modifications or
               adjustments to the Software generally available to other
               Supplier's customers with the same Release shall be sent to a
               designated Qwest contact.  Supplier will, at its own discretion,
               make such additions, modifications or adjustments to the Release
               of the Software commonly known as the Current Release except if
               such adversely affects the Form, Fit or Function, in which case
               Qwest may refuse to accept such without amending its rights or
               Supplier's obligations hereunder.

          (c)  Supplier agrees that at any point in time it will support the
               then Current Release of the Software plus the (***) immediately
               preceding Releases.

     13.7 (***) Delivery.
          --------------

          (a)  Supplier shall keep and maintain a copy of Software (***) and
               other Documentation relevant to the use and maintenance of the

                                      -23-
<PAGE>

               Software licensed hereunder, including without limitation the
               Current Release of the Software.  Should Supplier at a future
               date (i) declare voluntary bankruptcy or be the subject of an
               involuntary bankruptcy (***) or (***) (or, (***) may (***) or
               (***)) of the Software; or (ii) cease supporting the Products or
               any other product incorporating such Software (***) pursuant to
               this Agreement for a non-material amount of time, then Supplier
               agrees and commits to Qwest that it will promptly and (***) to
               the fullest extent permitted by any third party intellectual
               owners, make available all such Software (***) which Supplier has
               a legal right to sublicense, and hereby grants to Qwest a non-
               exclusive perpetual, irrevocable, worldwide license to use,
               modify (including creating derivative works), and copy such
               Software (***) solely for the purpose of supporting and
               maintaining the Products including Software and only for so long
               as Licensee (***) such Products or Software in accordance with
               this Agreement.

          (b)  Supplier acknowledges that if a trustee in bankruptcy or Supplier
               as a debtor in possession rejects this Agreement, Qwest may elect
               to retain its rights under this Subsection as provided in Section
               365(n) of Title 11, United States Code (the "Bankruptcy Code").
                                                            ---------------
               In that event, the license for the Software (***) will include
               the following provisions:

               (i)   Qwest has no further recourse with respect to support in
                     the areas to which the license applies;

               (ii)  Supplier will assume no obligations or liabilities with
                     respect to infringement (related to the (***)), and/or
                     Qwest's inability to successfully support the Software
                     (***); and

               (iii) Supplier's then standard terms applicable to
                     confidentiality obligations and Supplier's disclaimer of
                     liabilities with respect to Qwest's subsequent use (of the
                     Software (***)).

     13.8 Documentation.
          -------------

          In addition to the requirements of Section 10.1, Supplier shall
          provide one set of instructions and reference manuals in both printed
          and electronic forms free of charge for all Software.  All such sets
          of instructions and reference manuals are ordered as separate line
          items.  Licensee may purchase additional sets at the price and
          discount specified on Schedule C.  Planning guides are available and
                                ----------
          will be delivered free of charge with

                                      -24-
<PAGE>

          each and every Release delivered to Licensee.

     13.9 Transfer of License.
          -------------------

          (a)  Qwest may transfer, assign or sublicense (such sublicense only to
               the extent (***) to (***) those rights (***) to use the
               Products), any license granted by Supplier hereunder, to any
               Affiliate, holding company, subsidiary of holding company,
               subsidiary, associated company, or successor in interest of Qwest
               or any person controlling or controlled by any of the foregoing
               or  to any person directly or indirectly under common control
               with Qwest (collectively, "License Transferee"), provided such
               License Transferee (i) has (***) to be (***) by the (***) of
               (***) and (ii) of which (***) has (***).

          (b)  Qwest and any successor to Qwest's title in any Products shall
               have the right without further consent of Supplier to assign or
               sublicense (such sublicense only to the extent necessary to grant
               those rights necessary to use the Products), the License herein
               granted to any other party who subsequently acquires the right to
               use the applicable Products, provided that any such other party
               prior to the transfer of the applicable Software (***) the terms
               and conditions of this license.

14.  TECHNOLOGY CURRENCY

     Supplier understands and acknowledges that Qwest is entering into this
     obligation (including but not limited to the incorporated pricing and
     discount terms) based on the expectation that Supplier will (***) (i)
     continue to remain technologically competitive and (ii) offer products to
     Qwest that will allow productivity savings, based on Qwest's use of such
     products.  Supplier shall (***) provide products using current technologies
     that will enable Qwest to take advantage of technological advancements in
     its industry and support Qwest's efforts to remain competitive in the
     markets in which it competes.

15.  INFRINGEMENT WARRANTY AND INDEMNITY

     15.1 Supplier warrants that it or its Affiliates are the owner of the
          Intellectual Property Rights of the Products, or, if the Products or
          other materials contain third party products or software, that
          Supplier has the full power and authority to deliver, convey and grant
          to Qwest the related license and other rights granted under this
          Agreement.  Supplier further warrants that Supplier's provision of
          Services under this Agreement, grant of the licenses hereunder, and
          Qwest's use of the Products will not constitute a

                                      -25-
<PAGE>

          misappropriation of any trade secrets, infringement or
          misappropriation of any copyright or trademark or (***) any patent.

     15.2 Supplier shall defend or settle, at its expense, any threatened or
          actual claim, suit or proceeding made against Qwest that use of the
          Products infringes any patent, trademark, copyright, trade secret or
          other intellectual property right of a third party ("Infringement
                                                               ------------
          Claim"), and shall indemnify Qwest and hold it harmless against all
          -----
          damages, claims, costs of investigation, litigation, settlements,
          judgments and disbursements, including reasonable attorneys' fees
          ("Losses") arising out of the foregoing.  In order for this
            ------
          indemnification to apply to a claim, Qwest shall give Supplier prompt
          notice following Qwest's knowledge of any such Infringement Claim,
          shall allow Supplier to control the defense of and settlement
          negotiations with regard to such claim, provided that Qwest shall
          approve the terms of any settlement or compromise with respect to any
          Infringement Claim directed to Qwest's use of the Product unless
          Supplier has the (***) the settlement or compromise.  The Parties
          shall provide reasonable cooperation and assistance in the defense of
          the Infringement Claim.

     15.3 If any Product furnished under this Agreement becomes, or in Qwest or
          Supplier's reasonable opinion is likely to become, the subject of any
          claim, suit, injunction or proceeding arising from or alleging
          infringement of, or in the event of any adjudication that such Product
          infringes on, any Intellectual Property Right, Supplier, at its
          expense, shall take the following actions in the listed order of
          preference:

          (a)  (***) procure in a timely manner for Qwest and its Affiliates (if
               applicable) the right to continue using the Product (***) or
               (***) of (***) or (***); or if those efforts are unavailing;

          (b)  (***) replace or modify the Product to make it non-infringing;
               provided, however, that such modification or replacement shall
               not materially degrade the operation or materially impair the
               performance of the Product, or otherwise make it incompatible
               with Qwest's current network; or

          (c)  if (a) and (b) are commercially impracticable or would cause the
               Products to fail to be Network Compatible, accept return of the
               Product and refund Qwest all amounts paid therefor, including any
               prepaid maintenance and support fees, and pay Qwest any
               additional costs incurred by Qwest in acquiring a comparable
               replacement for the infringing Product.  Any refund of amounts
               paid may be reduced based on depreciation of the Product on

                                      -26-
<PAGE>

               straight line basis over a (***).

     15.4  Supplier shall have no liability in respect of any Infringement Claim
           based on the use of a Product to the extent that such claim (i) is
           based on a use of a Product by Qwest in a manner or for a purpose not
           contemplated by this Agreement; (ii) is based on a use of the Product
           by Qwest in combination with other non-Supplier products where such
           combination is not reasonably contemplated by this Agreement,
           provided the Infringement Claim arises solely from such combination;
           or (iii) is based on a modification of the Product by Qwest where
           such modification has not authorized by Supplier in writing.

     15.5  This Section 15 establishes the entire rights and obligations of the
           Parties for claims of infringement of Intellectual Property Rights.

16.  KNOW HOW AND NEW TECHNOLOGY

     Notwithstanding anything to the contrary contained in this Agreement, each
     Party shall be entitled, without royalty to the other Party, to use,
     disclose and sell any know-how retained in the minds of employees of such
     Party, expertise, techniques, approaches or concepts (the "Know-how")
                                                                --------
     developed or acquired in the course of performing under this Agreement. The
     Parties agree that Know-how shall not include any Qwest, Supplier or third
     party (***) and (***) or (***), any (***), or any Confidential Information
     of the other Party. The foregoing shall not be construed as granting a
     license in any Intellectual Property Rights. The Parties recognize that New
     Technology may be developed during the Term. If any New Technology is
     deemed by the Party that created it to be deserving of intellectual
     property protection, then that Party is responsible for taking steps to
     protect any interests it may have in such New Technology and may (***) such
     New Technology during its pursuit of Intellectual Property Rights in the
     same.

17.  WARRANTY

     17.1  Equipment

           (a)  Supplier warrants that Equipment supplied hereunder will be
                Operative and free from defective material and faulty
                workmanship for (***) from the (***) stamped on the Equipment
                or, if the date of shipment is not marked on the Equipment,
                (***) from the (***) ("Warranty Period").

           (b)  The foregoing Equipment warranty shall not apply to the extent
                that (i) the Nonconformity is caused by the Equipment having
                been

                                      -27-
<PAGE>

                altered or repaired by any party other than Supplier without
                Supplier's prior, written consent; (ii) the Nonconformity
                results from Qwest's (***) of the Equipment; or (iii) the
                Equipment having been damaged by (***). This foregoing Equipment
                warranty does not apply to items normally consumed in operation,
                such as, but not limited to, lamps and fuses.

          (c)  If a Nonconformity occurs, Qwest shall give Supplier a reasonable
               opportunity to repair or replace such Equipment, as set forth in
               Schedule H, before exercising any other rights or remedies it may
               ----------
               have under this Agreement.

          (d)  Supplier shall provide technical support for a Product performed
               by qualified and competent personnel for a period of (***) after
               Acceptance of the Product as set forth in Schedule G.
                                                         ----------

     17.2  Supplier warrants the Software, but not including embedded software
           or firmware (which is addressed in Section 17.1), will be Operative
           through the (***) after the (***) of the Software, provided that the
           foregoing warranty shall not apply if Qwest has (***) for (***) which
           would (***) of (***) and (***) to (***) such Releases. At Qwest's
           option, Supplier shall provide software maintenance and support after
           the initial Warranty Period pursuant to the terms and conditions of
           the Software Maintenance Agreement, attached hereto as Schedule I.
                                                                  ----------

     17.3  Supplier warrants that the Software, ISUs, Enhancements, Releases
           and Versions and any media used to distribute it does not contain any
           computer instructions, circuitry, routines or other technological
           means ("Harmful Code") whose purpose is to disrupt, damage or
                   ------------
           interfere with Qwest's use of its computer and telecommunications
           facilities for their commercial, test or research and development
           purposes. Supplier shall indemnify Qwest and hold Qwest harmless from
           and against any and all claims, losses, costs, liabilities, damages
           and/or expenses, including reasonable attorneys fees, arising from
           the presence of Harmful Code in or with the Software or contained on
           media delivered by Supplier.

     17.4  Supplier shall perform all Services required under this Agreement
           including without limitation, customization services, implementation,
           maintenance services and training services in a good and workmanlike
           manner and shall be responsible for the capabilities, limitations and
           performance of any development tools used in providing its Services.
           With Qwest's prior written consent, Supplier may perform its (***)
           hereunder through an agent.

                                      -28-
<PAGE>

     17.5  Supplier warrants during the Warranty Period that the Products
           provided hereunder shall be able to accurately process data
           (including without limitation, calculating, compiling and sequencing
           date data) from, into and between the twentieth and twenty-first
           centuries, including leap year calculations, and will create, store,
           process and exchange (input and output) information related to or
           including dates on or after January 1, 2000, without error or
           omissions ("Year 2000 Compliant").
                       -------------------

     17.6  The Warranty Period for any replacement Product provided by Supplier
           under this Agreement shall be the greater of (i) the remaining
           Warranty Period of the replaced Product on the date it went out of
           service; or (ii) an additional Warranty Period of (***) from the date
           of Acceptance of the replacement Product by Qwest.

     17.7  Upon expiration of the applicable Warranty Period for Equipment
           furnished hereunder, repair and replacement service for such
           Equipment shall be available to Qwest from Supplier in accordance
           with Schedule C and at charges (***).
                ----------

     17.8  The warranty for any third party items used in the Product shall be
           no less than the warranties for the rest of the Product. As of the
           Effective Date, there are not currently any third party items used in
           the Product that have a longer warranty period than the Warranty
           Period. If any third party items used in the Product have a longer
           warranty than granted herein then, to the extent permitted by the
           manufacturer, Supplier shall assign warranties for third party items
           which have a warranty period exceeding the Warranty Period to Qwest.

     17.9  Supplier represents and warrants that as of the Effective Date of
           this Agreement, the Supplier has not received written notice of any
           pending lawsuits, claims, disputes or actions that it reasonably
           considers significant (i) alleging that the Products infringe or
           misappropriate any Intellectual Property Rights, or (ii) adversely
           affecting the Products or Supplier's ability to undertake and perform
           its obligations under this Agreement.

     17.10 During the Warranty Period for a Product, Supplier shall provide
           warranty support services performed by qualified and competent
           personnel as set forth in Schedule H.   Supplier shall deliver to
                                     ----------
           Qwest and keep current a list of persons and telephone numbers
           ("Calling List") for Qwest to contact in order to obtain answers to
             ------------
           questions arising, or assistance in solving problems or
           Nonconformities occurring, during Qwest's use of any of the Products.
           The Calling List shall include (i) the first person to contact if a
           question arises or problem occurs, and (ii) the persons in
           successively more responsible or qualified positions to provide the
           answer or assistance

                                      -29-
<PAGE>

            desired. If Supplier does not respond promptly to any request by
            Qwest for telephone assistance, then Qwest may attempt to contact
            the next more responsible or qualified person on the Calling List
            until contact is made and a designated person responds to the call.

     17.11  After Qwest reports a suspected Nonconformity, Supplier shall
            provide a correction or work around or repair part to restore the
            Product (including the entire System) to Operative condition as soon
            as reasonably possible, but in any case in conformance with the
            designated repair times in the Specifications in the applicable
            Schedules to this Agreement.

     17.12  Any Release made available to any of Supplier's customers within the
            Warranty Period for any Product that correct Nonconformities shall
            be provided to Qwest at no additional charge. Such Release shall be
            in compliance with the performance and warranty requirements for any
            of the Products under this Agreement.

     17.13  Supplier warrants that the Products: (i) will meet all applicable
            standards including, but not limited to, ANSI and ISO Standards;
            (ii) will provide the functionality described in; (iii) will conform
            to the current environmental specifications set forth in the
            Bellcore New Equipment Building Standard; and (iv) will be Network
            Compatible.

     17.14  THE EXPRESS WARRANTIES IN THIS AGREEMENT INCLUDING THE SCHEDULES
            ATTACHED HERETO ARE IN LIEU OF ANY OTHER WARRANTY, WHETHER EXPRESS,
            IMPLIED OR STATUTORY, WITH RESPECT TO THE PRODUCT TO BE SUPPLIED
            UNDER THIS AGREEMENT. EXCEPT AS EXPRESSLY SET FORTH HEREIN, SUPPLIER
            SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY,
            FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY
            RIGHTS AND THOSE ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE.
            SUPPLIER NEITHER ASSUMES NOR AUTHORIZES ANY PERSON TO ASSUME FOR IT
            ANY OTHER LIABILITY. THE WARRANTIES EXPRESSED HEREIN SHALL NOT BE
            ASSIGNABLE TO ANY OTHER PARTY EXCEPT AS SUCH PRODUCTS OR OTHER
            RIGHTS ARE ASSIGNED OR OTHERWISE TRANSFERRED PURSUANT TO THE TERMS
            AND CONDITIONS OF THIS AGREEMENT.

18.  GENERAL INDEMNITY

     (***) shall indemnify and hold harmless (***) from any claim or damages due
     to the personal injury or death of any individual and against any
     reasonably

                                      -30-
<PAGE>

     foreseeable loss, damage, liability, cost or expense (including attorneys'
     fees) which may be incurred on account of any suit, claim, judgment,
     demand, or threat thereof, arising out of or caused by a willful or grossly
     negligent act or omission or an intentional act of misconduct of (***), its
     agents, employees or subcontractors.

19.  LIMITATION OF LIABILITY

     NEITHER PARTY SHALL BE LIABLE TO THE OTHER (OR ANYONE CLAIMING UNDER OR
          THROUGH THE OTHER) FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE
          OR EXEMPLARY DAMAGES ARISING FROM OR RELATED TO THIS AGREEMENT,
          INCLUDING, BUT NOT LIMITED TO, LOST PROFITS OR OTHER ECONOMIC
          ADVANTAGE, EVEN IF THE PARTIES HAVE KNOWLEDGE OF THE POSSIBILITY OF
          SUCH DAMAGES. PROVIDED, HOWEVER, THAT IF THE LAW OF ANY JURISDICTION
          APPLICABLE TO THIS AGREEMENT DOES NOT PERMIT SUCH DAMAGES TO BE
          COMPLETELY DISCLAIMED, THIS CLAUSE SHALL BE INTERPRETED AS NECESSARY
          TO GIVE THE FULL BENEFIT OF ANY DISCLAIMER OR LIMITATION OF SAID
          DAMAGES AS PERMITTED UNDER SUCH LAW. THE FOREGOING LIMITATION SHALL
          NOT APPLY IN THE EVENT OF LIABILITY ARISING FROM: (i) AN INDEMNITY
          UNDER SECTION 15 ("INFRINGEMENT WARRANTY AND INDEMNITY"), SECTION 17.3
          ("HARMFUL CODE INDEMNITY") OR SECTION 18 ("GENERAL INDEMNITY"); (ii) A
          BREACH OF SUPPLIER'S CONFIDENTIALITY OBLIGATIONS IN SECTION 20
          ("CONFIDENTIALITY"); OR (iii) THE GROSS NEGLIGENCE OR WILLFUL
          MISCONDUCT OF A PARTY, ITS AGENTS, ITS EMPLOYEES OR NOMINEES ARISING
          OUT OF OR IN CONNECTION WITH THIS AGREEMENT.

20.  CONFIDENTIALITY

     20.1 This Agreement and all information marked as confidential and
          disclosed by either Party (the "Disclosing Party")  to the other (the
          "Recipient"), or information of a confidential nature which is
          disclosed orally and for which a written summary is provided to the
          other Party (***) of (***) (provided that no written summary shall be
          required for confidential information of a (***) which is disclosed
          orally between the Parties' (***) which such personnel should
          reasonably understand to be confidential) shall be "Confidential
                                                              ------------
          Information".  Confidential Information constitutes a valuable asset
          -----------
          of and is proprietary to the Party disclosing or originally

                                      -31-
<PAGE>

          possessing it. Supplier acknowledges that Qwest keeps its customers'
          records strictly confidential. Supplier and its Representatives shall
          keep strictly confidential any Qwest customer records, whether or not
          they are marked as confidential. Neither Party shall willfully
          disclose Confidential Information or knowingly permit its
          Representatives to disclose Confidential Information to any person
          other than persons, including its Representatives, having a specific
          need to know in performance of the work. Each Party shall take
          reasonable care to insure fulfillment of this obligation, including
          instructing its Representatives not to sell, lease, assign, transfer,
          use outside their scope of employment or reveal any Confidential
          Information or Qwest customer records without prior written consent of
          the other Party. Recipient shall use the Disclosing Party's
          Confidential Information only for purposes of exercising its rights or
          fulfilling its obligations under this Agreement and shall disclose
          Confidential Information only to those (***) and (***) who have a need
          to know Confidential Information for purposes of this Agreement.
          Recipient shall return or destroy the Confidential Information
          (including all copies) when no longer needed or when requested to do
          so by the Disclosing Party Each Recipient shall take reasonable care
          to insure fulfillment of this obligation, including instructing its
          Representatives not to sell, lease, assign, transfer, use outside
          their scope of employment or reveal any Confidential Information,
          including but not limited to customer records, without prior written
          consent of the Disclosing Party.

    20.2  If a subpoena or other legal process in any way concerning
          Confidential Information is served upon Recipient, the Recipient shall
          notify the Disclosing Party promptly, and the Recipient shall
          cooperate with the Disclosing Party, at the latter's expense, in any
          lawful effort to contest the validity of such subpoena or other legal
          process.

    20.3  Notwithstanding the foregoing, if either Party is required by law or
          governmental regulation by compulsory judicial or administrative
          process to make any disclosure, including but not limited to those
          made in any registration statement, report or other document filed
          with the U.S. Securities and Exchange Commission or any other
          governmental agency, such disclosure will not be deemed to violate the
          terms of this Section, provided the Recipient promptly notifies the
          Disclosing Party of such disclosure and (***) to (***) a (***) or to
          (***) to protect the intent of the Parties to restrict disclosure of
          all Confidential Information and the terms of this Agreement,
          including but not limited to seeking confidential treatment of all
          such information in administrative filings. In addition, if the
          Recipient's efforts to seek confidential treatment or other protective
          measures for such information are not successful, such party may only

                                      -32-
<PAGE>

          make such disclosure after (i) providing written notice of the same to
          the disclosing party and (ii) (***) the Disclosing Party to take
          measures to secure the confidential treatment of the information.

    20.4  Qwest may disclose the Software to its contractors who have a need to
          know for purposes of exercising rights related to this Agreement,
          provided that such contractors have agreed in writing to observe in
          substance the obligations of Qwest set forth in this Section.

    20.5  The obligations of confidentiality in this Section shall not apply to
          any information which a Party has in its possession when disclosed to
          it by the Disclosing Party, information which a Party independently
          develops, information which is or becomes known to the public other
          than by breach of this Agreement or information rightfully received by
          a Party from a third party without the obligation of confidentiality.

    20.6  A Party shall not use the other Party's name or logo or refer to the
          other Party directly or indirectly in any advertising, sales
          presentation to any other person, news release, release to any
          professional or trade publication or for any other similar purpose
          without the other Party's prior written approval, provided that (i)
          Supplier may use Qwest's name or logo, or both, in a list of
          Supplier's customers, if such use does not imply endorsement and (ii)
          Qwest may use Supplier's name or logo, or both, in a list of Qwest's
          suppliers.

21.  TERMINATION, SURVIVAL

     21.1 Bankruptcy.  Either Party may terminate the Agreement if the other
          ----------
          Party shall: (a) file a voluntary petition under any bankruptcy or
          insolvency law, or file a voluntary petition under the reorganization
          or arrangement provisions of any law of any jurisdiction, or have
          proceedings under any such laws instituted against it which are not
          terminated within (***) of such commencement; (b) become insolvent,
          bankrupt, or admit in writing of its inability to pay all debts as
          they mature or make a general assignment for the benefit of or enter
          into any composition or arrangement with creditors; (c) authorize,
          apply for, or consent to the appointment of a receiver, trustee, or
          liquidator of all or a substantial part of its assets, or has
          proceedings seeking such appointment commenced against it which are
          not terminated within (***) of such commencement.

    21.2  Termination for Convenience.  Qwest may terminate or suspend this
          ---------------------------
          Agreement or a part thereof for convenience upon (***) written notice,
          and Qwest shall have no further obligations under this Agreement
          except for (i) payment due for any Products retained by Qwest for
          which Supplier

                                      -33-
<PAGE>

          has not received payment; (ii) payment due for any Services completed
          by Supplier for which Supplier has not received payment and (iii)
          payment of the difference between the (***) (as such amount exists as
          of the date of termination) and the amount of payments received by
          Supplier.

    21.3  Purchase Commitments of Acquired Entities.  If, during the Term of
          -----------------------------------------
          this Agreement, Qwest or any of its Affiliates acquire a controlling
          interest in or substantially all the assets of an entity ("Acquired
                                                                     --------
          Entity") that has an agreement with Supplier for products, services
          ------
          and/or software with remaining purchase commitments, Qwest may satisfy
          such purchase commitments under the original agreement between the
          Acquired Entity and Supplier or this Agreement provided that any
          amounts purchased by Qwest or its Affiliates that apply to the
          satisfaction of a purchase commitment in another agreement (***) the
          Commitment.

    21.4  Change of Control. If, during the Term of this Agreement, an entity,
          -----------------
          person or successor acquires 50% or more of Qwest's voting securities
          or all or substantially all of its assets whether by merger,
          consolidation, reorganization or sale of assets then the acquiring
          entity, person or successor shall have the right to terminate this
          Agreement or a part thereof upon (***) written notice, and Qwest shall
          have no further obligations under this Agreement except for (i)
          payment due for any Products retained by Qwest for which Supplier has
          not received payment; (ii) payment due for any Services completed by
          Supplier for which Supplier has not received payment and (iii) payment
          of the difference between the (***) (as such amount exists as of the
          date of termination) and the amount of payments received by Supplier.

    21.5  Termination for Cause.  Notwithstanding any other provision of this
          ---------------------
          Agreement, prior to any Party's termination or suspension for cause,
          the Parties shall use the dispute resolution procedure set forth in
          Section 25. The foregoing requirement shall apply only until the total
          Commitment amount has been paid by Qwest. Either Party may terminate
          or suspend this Agreement upon material breach of this Agreement by
          the other after providing written notice to the other Party describing
          specific obligations the other Party has materially breached. Upon the
          breaching Party's receipt of the other Party's notice, the breaching
          Party shall have (***) to cure the breach. If the breaching Party is
          unable to cure such breach within such (***) period, the other Party
          may terminate or suspend this Agreement in whole or part; provided
          that any such termination shall relieve (***) of (***) under (***).

    21.6  Survival.  All provisions of this Agreement which by their nature
          --------
          must survive termination in order to achieve the fundamental purposes
          of this Agreement shall survive any termination of this Agreement,
          including but

                                      -34-
<PAGE>

           not limited to the following Sections: 2 (Scope), 3 (Supplier
           Obligations), 9 (Payment Terms), 13 (Software), 15 (Infringement
           Warranty and Indemnity), 16 (Know-How and New Technology), 17
           (Warranty), 18 (General Indemnity), 19 (Limitation of Liability), 20
           (Confidentiality), 21 (Termination), 31 (Severability) and 33 (Choice
           of Law).

22.  FORCE MAJEURE

     22.1  Except to the extent of normal inclement weather, which shall be
           built into any schedule, neither Party will be liable for delays in
           performance or a failure to perform hereunder due to causes of acts
           of God, acts of any government, wars, riots, fires, floods,
           accidents, strikes, or embargoes. In the event of such delays, the
           schedules shall be extended for such additional period of time as is
           determined to be equitable by the Parties. With respect to labor
           difficulties, a Party shall not be obligated to accede to any demands
           being made by employees or other personnel.

           If any performance date for any Product or Service under this
           Agreement is postponed or extended pursuant to this Section for
           longer than (***), Qwest may, at its option, by written notice given
           during the postponement or extension, terminate Supplier right to
           render further performance for such affected Products or Services
           after the effective date of termination without liability for that
           termination.

23.  JOINT WORK PRODUCT

     The Parties, who have both been represented by legal counsel, have jointly
     participated in negotiating and drafting this Agreement, including its
     Schedules and any attachments. In the event an ambiguity or question of
     intent or interpretation arises, this Agreement shall be construed as if
     jointly drafted by the Parties and no presumption, inference or burden of
     proof shall arise favoring or disfavoring a Party by virtue of authorship
     of any or all of the Agreement provisions.

24.  ASSIGNMENT

     24.1  Subject to Section 13.9 ("Transfer Of License"), except as provided
           below, neither Party shall assign any of its rights nor delegate any
           of its obligations under this Agreement without the prior express
           written consent of the other Party. Any prohibited assignment or
           delegation shall be null and void.

     24.2  Qwest may assign this Agreement without prior approval to any company

                                      -35-
<PAGE>

          or Entity controlling, controlled by or under common Control of Qwest
          or its Affiliates which assignee is (***) to (***) obligations
          hereunder. In addition and notwithstanding the foregoing, Qwest may
          assign this Agreement without the approval of Supplier to any
          successor in interest resulting from a merger, acquisition,
          reorganization or transfer of all or substantially all of Qwest's
          business with or to a successor.

25. DISPUTES

    25.1  The Parties shall work together and attempt to resolve by good faith
          and diligent negotiation any dispute, controversy or claim between
          them arising out of or relating to any contract document, or the
          breach, termination or invalidity thereof (a "Dispute"). The Parties
                                                        -------
          shall work together in good faith to informally resolve the dispute
          internally by escalating it as necessary to progressively higher
          levels of management. Following such internal process, if the dispute
          has not been resolved within (***) after formal initiation of the
          dispute process, either Party may initiate arbitration as provided for
          below.

    25.2  Following the procedure discussed in Section 25.1 above, binding
          arbitration shall be used to resolve any Dispute.  Such arbitration
          shall be conducted in accordance with the then-current Commercial
          Arbitration Rules of the American Arbitration Association ("AAA
                                                                      ---
          Rules") by (***).  Within (***) of a notice of arbitration, each Party
          shall appoint (***) and the arbitrators appointed shall together
          appoint a (***).  Once the (***) arbitrator has (***) appointment, the
          arbitrators shall be deemed a panel (hereinafter, the "Impanelment").

    25.3  The Federal Arbitration Act, 9 U.S.C. Secs. 1-16 shall govern the
          arbitrability of all Disputes. The arbitration proceedings shall be
          English and the place of arbitration shall be Denver, Colorado. The
          construction and interpretation of this Agreement shall be governed by
          the laws of the State of Colorado without reference to its conflicts
          of law rules, or rules of statutory arbitration. Arbitral awards under
          this Section 25 shall be final and binding, and shall be enforceable
          in any court having jurisdiction. The arbitration shall (***) of the
          (***).

    25.4  (a) Nothing in this Section will prevent any Party from applying to
          any court of competent jurisdiction for preliminary or interim relief
          in a judicial proceeding if such relief from a court is necessary to
          preserve the status quo pending resolution or to prevent serious and
          irreparable injury to that Party pending resolution of the Dispute
          through arbitration, or to compel arbitration in accordance with this
          Section.

                                      -36-
<PAGE>

     (b)  For purposes of this Section each Party consents to the exclusive
          jurisdiction and venue of the courts of the state and federal courts
          of Denver County in the State of Colorado.

     (c)  The prevailing Party in an arbitration or litigation shall  be
          entitled to recover from the other Party reasonable attorneys' fees
          and other costs of such arbitration.

     (d)  The arbitrator shall have, in addition to any other powers set forth
          herein or in the rules and statutory sections referenced herein, the
          power to modify or eliminate the Commitment and / or the dates related
          thereto.

26. RELATIONSHIP OF THE PARTIES

    26.1  The Parties are independent contractors. Nothing in this Agreement or
          in the activities contemplated by the Parties pursuant to this
          Agreement shall be deemed to create an agency, partnership, employment
          or joint venture relationship between the Parties. Each Party shall be
          deemed to be acting solely on its own behalf and, except as expressly
          stated, has no authority to pledge the credit of, or incur obligations
          or perform any acts or make any statements on behalf of, the other
          Party. Neither Party shall represent to any person or permit any
          person to act upon the belief that it has any such authority from the
          other Party. Neither Party's officers or employees, agents or
          contractors shall be deemed officers, employees, agents or contractors
          of the other Party for any purpose.

    26.2  Supplier represents and warrants that Supplier qualifies as an
          independent contractor under the provisions of the Internal Revenue
          Code's common law rules enacted as part of Section 1706 of the 1986
          Tax Reform Act, and as such Supplier is filing all required forms and
          necessary payments appropriate to Supplier's tax status.  In the event
          Supplier's independent status is denied or changed and Supplier is
          declared to have "common law" status with respect to work performed
          for Qwest, Supplier agrees to indemnify, defend and hold Qwest and its
          Affiliates harmless from all costs, including legal fees, which Qwest
          may incur as a result of such change in status.

27. AMENDMENT

    No changes, amendments or modifications of any of the terms or conditions of
    this Agreement shall be valid unless made by an instrument in writing signed
    by both Parties. None of the terms or conditions of this Agreement shall be
    modified, amended or altered by or through a Purchase Order. Each Party
    shall

                                      -37-
<PAGE>

     designate by written notice to the other Party the individual who has the
     authority to amend this Agreement.

28.  COMPLIANCE WITH LAWS

     The Parties shall comply with all applicable federal, state and local laws,
     regulations and ordinances as they relate to this Agreement and the
     Software, including, but not limited to, the regulations of the United
     States Government, the provisions of Executive Order 11246 (as amended) of
     the President of the United States on Equal Employment Opportunity and the
     rules and regulations issued pursuant thereto, which are incorporated in
     this Agreement by this reference as if set forth in full. Supplier and the
     Products shall comply with all rulings, orders and determinations by the
     Federal Communications Commission and any other governmental body relating
     to the provision of the Products or Services under the (***).

29.  CONSTRUCTION/HEADINGS

     All Schedules and attachments, as supplemented and amended, to this
     Agreement or to be attached to this Agreement are made a part of it as if
     fully included in the text of this Agreement. References to any law,
     legislative act, rule or regulation shall mean references to such law,
     legislative act, rule or regulation in changed or supplemented form or to a
     newly adopted law, legislative act, rule or regulation replacing a previous
     law, legislative act, rule or regulation. All defined terms used in the
     Agreement shall have the same meanings ascribed to them when used in the
     Schedules, attachments and Purchase Orders, unless otherwise specified
     therein. The terms "including" or "includes" shall always be construed as
     meaning respectively "including without limitation" or "includes without
     limitation". The title, captions and headings used in this Agreement are
     strictly for convenience of reference only and shall not be used in the
     interpretation, construction, amplification or limitation of any of the
     content of this Agreement. Whenever the singular is used herein, the same
     shall include the plural where appropriate, and when the plural is used
     herein, the same shall include the singular where appropriate.

30.  NO WAIVER

     No delay, failure or waiver of either Party's exercise or partial exercise
     of any right or remedy under this Agreement shall operate to limit, impair,
     preclude, cancel, waive or otherwise affect such right or remedy.

31.  SEVERABILITY

                                      -38-
<PAGE>

     If any provision of this Agreement is held invalid, illegal or
     unenforceable, the validity, legality or enforceability of the remaining
     provisions shall in no way be affected or impaired thereby.

32.  COUNTERPARTS

     This Agreement may be executed by the Parties in one or more counterparts,
     and each of which when so executed shall be an original, but all such
     counterparts shall constitute one and the same instrument.

33.  CHOICE OF LAW

     This Agreement is entered into in and shall be governed by the internal
     laws and of the (***) without regard to the principles of choice of law
     thereof.  The Products shall be deemed to be goods within the meaning of
     the Uniform Commercial Code.  Each Party agrees to waive its right to a
     jury trial in any action commenced hereunder.

34.  REMEDIES

     The remedies under this Agreement shall be cumulative and not exclusive,
     and the election of one remedy shall not preclude pursuit of other remedies
     generally available under the governing law.

35.  IMMIGRATION REFORM AND CONTROL ACT

     Supplier warrants, represents, covenants and agrees that it will not assign
     to perform any efforts under this Agreement any individual who is an
     unauthorized alien under the Immigration Reform and Control Act of 1986 or
     its implementing regulations. Supplier shall indemnify and hold harmless
     Qwest, its parent, subsidiaries and affiliated companies from and against
     any and all liabilities, damages, losses, claims or expenses (including
     attorneys' fees) arising out of any breach by Supplier of this section. In
     the event any Supplier Personnel or contractor working under this
     Agreement, or other individuals providing work to Qwest on behalf of
     Supplier under this Agreement, are discovered to be unauthorized aliens,
     Supplier will immediately remove such individuals from performing work and
     replace such individuals with individuals who are not unauthorized aliens.

36.  IMPORT/EXPORT

     The Parties hereby represent and warrant that no commodities or technical
     data (including computer software) or other technology agreed to be sold or
     otherwise

                                      -39-

<PAGE>

     transferred under this Agreement will be knowingly sold, leased, delivered,
     transferred or conveyed to any person in any country except in strict
     compliance with all export and import laws, regulations, executive orders
     or decrees of the United States Government or any agencies thereof and the
     government of any other country (or any agencies thereof) with jurisdiction
     over such transaction. Qwest shall, solely at its own expense, obtain all
     required export and import licenses, permits, approval, certificates and
     verifications before shipment of any Products.

37.  PUBLICITY

     Neither Party shall, without the prior written approval of the other Party,
     publicly disclose in any press release, filing (including without
     limitation any SEC filing), brochure or document any information pertaining
     to this Agreement, provided that in the event of a conflict between this
     Section and (***) shall control.

38.  NOTICES

     38.1  In addition to those instances identified throughout this Agreement
           that require notices to particular individuals via particular means
           for particular purposes, all notices, requests, demands, or consents
           required or permitted hereunder, other than routine operational
           communication, shall be in writing and shall be delivered, sent by
           facsimile transmission or overnight courier, or sent by certified or
           registered mail to the respective Party at the addresses set forth
           below or at such other address as shall have been given to the other
           Party in writing for the purposes of this Section and Agreement. Such
           notices and other communications shall be deemed effective upon the
           earliest to occur of (i) actual delivery of confirmed facsimile or
           electronic transmission; (ii) three (3) postal delivery days after
           the date of mailing by certified or registered mail, return receipt
           requested, postage prepaid; (iii) one (1) business day after dispatch
           via an express courier with a reliable system for tracking delivery;
           (iv) actual delivery by

                                      -40-

<PAGE>

          hand.

          (a)  If to Supplier:

          Tellium, Inc.
          2 Crescent Place
          Oceanport NJ 07757

          Attn: Michael Losch, CFO & Secretary

     If to Qwest:

     Qwest Communications Corporation
           555 17/th/ Street
           Denver, Colorado 80202

     Attention: Vice President, Procurement

           With a copy to:

     Qwest Communications Corporation
           555 17/th/ Street
           Denver, Colorado 80202

     Attention: Legal

     38.2 A Party may from time to time change its address for notification
          purposes by giving the other Party prior written notice of the new
          address and the date upon which it will become effective, in
          accordance with the manner set forth in this Section.

39.  INSURANCE REQUIREMENTS

     39.1 During the Term, Supplier and any of its subcontractors shall maintain
          insurance of the kinds and in the amounts specified below with
          insurers of recognized responsibility, whose policies are valid in the
          states where the work is being performed.

     39.2 In accordance with the above, Supplier and any subcontractors shall
          maintain the following insurance coverages:

          (a) Comprehensive general liability insurance.

          Commercial general liability insurance with a combined single limit
                 for bodily injury and property damage of (***) each occurrence
                 and General and Products Liability aggregates of (***) each,
                 covering all operations and/or work performed under this
                 Agreement.

          (b) Business automobile liability insurance.

          Business automobile liability with a combined single limit for bodily
                 injury and property damage of (***) each occurrence to include
                 coverage for all owned, non-owned, and hired vehicles.

          (c) Worker's compensation and employers' liability insurance.

          Worker's compensation insurance complying with the law of the State or

                                      -41-

<PAGE>

                 States of operation, whether or not such coverage is required
                 by law, and employer's liability insurance with limits of (***)
                 each employee and (***) disease policy limit.

     Certificates of such insurance shall be submitted to Qwest naming Qwest as
     an additional insured prior to the start of any work associated with this
     Agreement.  These certificates shall provide that there will be no
     termination or non-renewal of such coverage without thirty (30) days prior
     written notice to Qwest, in which case Supplier shall still maintain
     insurance and which may require certificate, and in no case where this
     Agreement is still in effect.

     Supplier shall require each subcontractor to provide and maintain at all
     times during the term of this Agreement insurance equivalent to that which
     is required of Supplier.  Any subcontractor and any subcontractors'
     carriers shall waive all right to recovery against Qwest for any injuries
     to persons or damage to property in the execution of work performed under
     this Agreement, exclusive of such liability resulting from Qwest's
     negligence or intentional misconduct and within the limits of any
     applicable laws.

     Should Supplier at any time neglect or refuse to provide the insurance
     required, or should such insurance be canceled or non-renewed, Qwest shall
     have the right to purchase such insurance, and the cost shall be billed to
     Supplier.  In addition, should Supplier at any time neglect or refuse to
     pay the necessary premium, Qwest shall have the right to deduct this amount
     from monies due Supplier.

40.  ORDER OF PRECEDENCE

     In the event of an inconsistency between the terms and conditions of the
     Agreement and the Schedules attached hereto, the Agreement shall control.

41.  ENTIRE AGREEMENT

     41.1  This Agreement, together with any other instrument, agreement or
           document attached or referred to, which are incorporated by this
           reference as though set forth in full, embodies the final, full and
           exclusive statement of the agreement between Qwest and Supplier, as
           it relates to the subject matter hereof. Neither Party shall be bound
           by or liable to the other Party for any representation, promise or
           inducement made by any agent or person in their employ relating to
           subject matter which is not embodied in this Agreement.

     41.2  The terms of this Agreement shall prevail over all preprinted forms,
           including Purchase Orders, software shrink wrap licenses and
           invoices, as any terms and conditions on such preprinted forms shall
           be null and void

                                      -42-
<PAGE>

           unless otherwise agreed to in writing by both Parties.

                                   *   *   *

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as of the Effective Date, such Parties acting by their officers, being
thereunto duly authorized.

Tellium, Inc.                 Qwest Communications Corporation

By:________________________    By:_________________________

Title:_____________________    Title:______________________

Date:______________________    Date:_______________________

                                      -43-
<PAGE>

                                  SCHEDULE A
                                  ----------

                              APPROVED AFFILIATES
                              -------------------

                                      -44-
<PAGE>

                                  SCHEDULE B
                                  ----------

                                   Purchase Order

Qwest Communications       Purchase Order   Date   Revision     Page
555 17th Street        PO:(***)         (***)                   1 of 1
Denver, CO 80202              Payment Terms Freight Terms           Ship Via
United States                              (***)
                              Buyer: ______________ Currency Code:   (***)
                             Ship To: SEE COMMENTS BELOW FOR
                                FURTHER INSTRUCTIONS
    Vendor: Example##             United States
    Example Company
    PO Box 123
    Denver, CO 15250-7963
    United States                Bill To: Qwest Communications
                                  555 Seventeenth Street
                                  Suite 1100
                                  Denver, CO 80202
                                  United States

<TABLE>
<S>             <C>             <C>                      <C>         <C>
Tax Exempt? (***)  Tax Exempt ID:
Line-SchdItem   Description     Mfg ID  Quantity(***)    PO Price    Extended Amt Due Date
</TABLE>

  (***)         (***)             (***)     (***)    (***)
            (***)

  Services performed by (***) under direction of the (***) - (***)
    (***)

                                              Total PO Amount    (***)

PLEASE FAX ORDER ACKNOWLEDGEMENT TO (***).  IF ACKNOWLEDGEMENT IS NOT RECEIVED
WITHIN (***).

(***) THE (***) THE (***).

Supplier, all invoices (***) the (***) in (***) due to the (***) in (***).

(***)/(***)

                          Acting as agent for: (***)

                                      -45-
<PAGE>

                                     (***)

(***), and (***) must be (***)
(***) will (***) unless
(***) by (***).

                                      -46-
<PAGE>

                                  SCHEDULE C
                                  ----------

                              PRODUCT PRICE LIST
                              -------------------

                Aurora Optical Switch Configuration and Pricing
--------------------------------------------------------------------------------
                                                                    Price

--------------------------------------------------------------------------------
Module                                                              Per Module

--------------------------------------------------------------------------------
OC48 Transceiver                                                         (***)

--------------------------------------------------------------------------------
OC-192 SR Transceiver                                                    (***)

--------------------------------------------------------------------------------
OC-192 LR Transceiver                                                    (***)

--------------------------------------------------------------------------------
Shelf Controller Module                                                  (***)

--------------------------------------------------------------------------------
First/Third Switch Module                                                (***)

--------------------------------------------------------------------------------
Middle Switch Module                                                     (***)

--------------------------------------------------------------------------------
TR Bay Common                                                            (***)

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

                                      -47-
<PAGE>

--------------------------------------------------------------------------------
Switch Bay Left Common                                                   (***)

--------------------------------------------------------------------------------
Switch Bay Right Common                                                  (***)

--------------------------------------------------------------------------------
Blank                                                                    (***)

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

--------------------------------------------------------------------------------
Software per System

--------------------------------------------------------------------------------
AOS Software A-Z Prov. OC-192 Groom (Upgrade from R1.0)                  (***)

--------------------------------------------------------------------------------
AOS Software Mesh R2.0 (Mesh, Prov, SDH) (Upgrade from R1.1)             (***)

--------------------------------------------------------------------------------
AOS Software Mesh R3.0 (Domains) (Upgrade from R2.0)                     (***)

--------------------------------------------------------------------------------
AOS Software Mesh R4.0 (Mesh Line Switch) (Upgrade from R3.0)            (***)

--------------------------------------------------------------------------------
AOS Software R5.0                                                        (***)

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

--------------------------------------------------------------------------------
              Hardware Configuration (Eng and Furnish)         Hardware Prices

--------------------------------------------------------------------------------
128 OC-48 and 96 OC-192 TCVRs                                            (***)

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

                                      -48-
<PAGE>

--------------------------------------------------------------------------------
               HW + SW Configuration (Eng and Furnish)            System Prices

--------------------------------------------------------------------------------
128 OC-48 and 96 OC-192 TCVRs                                            (***)

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
PlaNet Software                                                          (***)

--------------------------------------------------------------------------------
CIT Software                                                             (***)

--------------------------------------------------------------------------------
WMS Software                                                             (***)

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Additional Documentation                                                 (***)

--------------------------------------------------------------------------------
Training (see below)                                                     (***)

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

Training:  Prices are valid for classes of a minimum of five (5) students and a
maximum of ten (10) students.  Courses are offered at Tellium training facility
and includes all training materials.

All Software prices includes first Release released following delivery of
initial release of software delivered with Product (other than ISU's which
remain at no cost) at no additional cost to Qwest.

                                      -49-
<PAGE>

                                  SCHEDULE D
                                  ----------

                           Purchase Order Procedures

I.   Purchase Orders

Any shipment of Product or Service from Tellium for Qwest must occur only in
accordance with a formal, authorized Qwest Purchase Order

Individuals authorized to sign, issue and place Purchase Orders for Qwest are as
follows:

(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)               (***)
(***)

This list may be updated by Qwest upon written notice to Tellium.

II.  Quote and Order Process

Qwest Engineering will either request a proposal from Tellium or issue Purchase
Orders based on contracted pricing Schedule A.  Tellium will ensure that
proposal pricing is accurate and consistent with the pricing presented in the
Agreement and price lists furnished to Qwest Procurement.   Tellium will resolve
any price discrepancies with Qwest Procurement.  Tellium will resolve any
equipment discrepancies with Qwest's Engineer(s) prior to Qwest's acceptance of
the proposal, and before the proposal is submitted for ordering.  Tellium will
adhere to the pricing guidelines set forth in this Agreement, and will be
responsible for ensuring the accuracy of this pricing on any and all proposals
and/or invoices.

All Qwest Purchase Orders will be accepted by Supplier's transmittal to Qwest of
a sales order acknowledgement.  Such acknowledgement shall be sent by email or
facsimile to a person or department designated by Qwest, within (***) of receipt
of a Purchase Order.  Supplier may request additional time to respond to the
Qwest Purchase Order, but Qwest is under no obligation to grant such an
extension. If the PO is deemed inaccurate by Tellium for any reason, Tellium

                                      -50-
<PAGE>

shall contact the Buyer noted above within (***) of receipt.

III. Delivery and Shipment

Delivery and Shipment shall take place in accordance to Section 8 of the
Agreement.

Once a final shipment of a Purchase Order has been made, Tellium will invoice
Qwest for said material. The invoice will match the Packing Slips in its
entirety in order to accurately be received in the Qwest system for process of
payment.  If there is a discrepancy of any of these two (2) documents, Qwest
will notify Tellium within (***) of such discrepancy. Qwest shall have the right
to delay payment until such discrepancy is resolved. Any dispute as to invoiced
amounts shall be governed by Section 9.2 of this Agreement.

When equipment arrives on site it will be inventoried against the packing slip,
and any discrepancies will be brought to the immediate attention of Tellium
Order Management.

IV.  Invoicing Procedures

Send all invoices issued to Qwest Communications Corporation to the following
address:

          Qwest Communications Corporation
          555 17/th/ Street
          Suite 1100
          Attention: Accounts Payable
          Denver, CO 80202

Send all invoices issued to Qwest N Limited Partnership to the following
address:

          Qwest N Limited Partnership
          555 17/th/ St.
          Suite 1100
          Attention: Accounts Payable
          Denver, CO 80202

All invoices must match the Qwest Procurement Department issued Purchase Order
exactly.  Each Line Item, Price, Qty., etc. must match exactly before invoicing.
If there are discrepancies, please contact the appropriate Buyer prior to
invoicing.  Please wait for verification from the Buyer before sending the
invoice to Accounts Payable.

All invoices must clearly state the Qwest Procurement Department issued Purchase
Order number.  This number consists of 12 digits, the format is similar to this:
02-0000070000 (QCC P.O.) or 50-00000700000 (Q.N.LP P.O).  Additionally, Qwest
may issue a PO

                                      -51-
<PAGE>

from our JD Edwards system. Again, these orders will reference one of the
authorized individuals as listed above and the format will be as follows: 70000-
000 OP. Qwest Communications does not authorize the use of any other Purchase
Order Numbers. If a Purchase Order Number is received that varies from the
format mentioned above from an individual claiming to be an authorized agent of
Qwest Communications, verify the accuracy of the number by contacting the Buyer.
No shipments should be made based solely on a verbal conversation.

All invoices should state the name and telephone number of the Buyer who
authorized the purchase.

                                      -52-
<PAGE>

                                  SCHEDULE E
                                  ----------

                                   TRAINING
                                   --------

Tellium provides training to customers covering all of the necessary topics, as
agreed upon, for the installation, operation and maintenance of our equipment
including both hardware and software systems.

Currently, centralized training is offered at our Oceanport, New Jersey
location.  Tellium will provide instructors and the necessary instructional
material in our standard format to train Customer personnel, (including
personnel of Customer affiliated companies) in the installation, planning and
practices, operation, maintenance, and trouble shooting / repair of Tellium
products purchased or evaluated by the Customer.  These classes will be
conducted at reasonable intervals and at locations as agreed upon by Tellium and
the Customer.  At the option of the Customer, Tellium agrees to supply the
Customer with training modules and/or manuals and any necessary assistance to
allow the Customer to conduct a training program of it's own should the Customer
enter into an agreement to purchase said products.

Custom "suit cased" courses will be offered as customer requirements are known.
Suit case classes can only be provided at locations where equipment is available
for "hands on" training.

The following is a list of training courses that are offered:
Course         #Title                                        Duration

OXPF           Optical Switch Product Family Overview        1 Day

               The course provides an overview of the evolution of the
               Aurora Optical Switch product line. This course covers
               the basic engineering principles that are to be
               considered when deploying all OXCs and specific network
               design parameters that should be evaluated. The current
               schedule for availability of product hardware and
               software features will be discussed in detail. This
               course is incorporated into OXC 32-1 and OXC 32-2.

OXC 512-1      Aurora Optical Switch

               Product Engineering & Applications Course     2 days

This course will provide details on the engineering guidelines of the Aurora
Optical

                                      -53-
<PAGE>

Switch. Bay layout and engineering details for all interface connections will be
covered. The functionality of all modules will be reviewed. Discussions of
various applications for the cross-connect are to be addressed and comparisons
made to other possible technology implementations. In addition we will provide
an overview of network architectures that provide protection and restoration
using the Optical Switch.
OXC 512-2      Aurora Optical Switch

               Installation, Operation, Software Provisioning and

               Maintenance Course                                3 days

               This course will detail all of the installation
               activities and engineering considerations that are to
               be addressed for deployment of an Aurora Optical
               Switch. The course will detail the installation and
               test procedures for turning up the equipment and all
               circuit-packs. An overview of system administration and
               operations support for different configurations will be
               provided. Details of cabling, power requirements, HVAC
               and space demands will be covered. All software
               features and functions will be reviewed. There will be
               a special focus given to the provisioning of and
               removal of actual cross-connects, both on a point-to-
               point and point-to-multi-point basis.

Course Notes:

1.   In order to facilitate the required 50% "hands-on" time required for each
     class, courses are typically offered to a class with a minimum of 5 and a
     maximum of 10 students.

2.   Currently, course material is provided in a text format on paper or soft
     copy.  Other media such as audio or video may be developed as required.

                                      -54-
<PAGE>

                                  SCHEDULE F
                                  ----------

(***)

                                                                           (***)

                                                                           (***)

(***)
This document presents a (***) for (***) the (***). The Aurora Optical Switch
(AOS) is an optical layer cross-connect system with a capacity of 512 bi-
directional parts operating at the SONET rate of OC-48. The AOS is (***) by
(***) either through the (***) or the (***) running on a (***). The following is
a summary of the (***) in the (***):

 .    (***).

 .    (***) for the (***).  An (***) with the (***) and (***) as the (***) is
     (***).

 .    (***): Allows (***) to be (***) to (***), where (***).

 .    (***) is a (***) that uses (***) at the (***) to (***) in the event of a
     (***).
 .    (***): The (***), and (***) of (***) in the (***).  A (***) that exists for
     a (***) is (***) as an (***) with a (***) or (***).

 .    (***) deals with the (***), and (***) of (***) and (***) associated with a
     (***).

 .    (***): A (***) that allows (***) of (***).

(***)
 .    (***) and (***) access (***) and (***).

(***) and (***)
(***) the (***) of the (***).

 .    (***) to (***) and (***).

 .    (***) in the (***).

 .    (***) from the (***).

                                      -55-
<PAGE>

 .    (***) in the (***) and (***).

 .    (***) and (***) of all (***).

 .    (***).

 .    (***) by the (***).

 .    (***) and (***).

 .    (***).

 .    (***).

 .    (***).

 .    (***) the (***) of (***).

 .    (***)  and (***).

 .    (***) the (***) from the (***).

(***)
(***) the (***).

 .    (***):

     .    (***)

     .    (***)

     .    (***)

 .    (***):

     .    (***) with (***)

     .    (***) and (***)

                                      -56-
<PAGE>

     .    (***) of (***) and (***)

 .    (***)

     .    (***) that (***) with (***) cannot (***) that (***) for their (***).

 .    (***)

     .    (***) for (***) prior to (***).

     .    (***) for (***) after (***).

(***)

(***), and (***) via the (***) and the (***).

 .    (***), such as (***), and (***).

 .    (***).

 .    (***), and (***).

 .    (***).

 .    (***) of (***).

 .    (***) and (***).

 .    (***) and (***).

 .    (***) and (***).

 .    (***) and (***).

 .    (***) of (***) upon (***).

 .    (***).

                                      -57-
<PAGE>

 .    (***).

 .    (***) and (***).

(***)

(***) AND (***) AND (***) VIA (***) AND (***) ON THE (***) AND (***).

 .    (***), and (***) related to (***), and (***).

 .    (***), and (***) such as (***), and (***).

 .    (***) in the (***) with a (***).

 .    (***) in the (***) with a (***).

 .    (***) in the (***) with a (***).

 .    (***) by the (***).

 .    (***) of (***), and (***).

 .    (***) the (***) on the (***), and (***) are (***) during the (***).

 .    (***) the (***)  and (***) is (***) on (***).

 .    (***) such as (***) and (***).

 .    (***) into/from (***).

(***)

                                      -58-
<PAGE>

(***) are (***) in this section. The (***) to (***), and (***).

If the (***) is (***) for (***), it must be (***) that the (***) is (***) when a
(***) in the (***) is (***) to the (***). Where in (***), it must be (***) that
a (***) is (***) to the (***) in (***). In (***), a (***) to (***) is (***) the
(***) has (***) from the (***) that (***) the (***).

Following are the (***) for the (***) of this (***):

 .    (***)

 .    (***)

     .    (***) of (***) to (***)

     .    (***) of (***) to (***)

     .    (***) of (***) to (***)

     .    (***) of (***) to (***)

     .    (***) of (***)

     .    (***)

 .    (***)

     .    (***)

     .    (***)

(***)
(***) of (***) by (***) and (***).

 .    (***) the (***) of the (***).

 .    (***) for (***) and (***).

 .    (***) and (***) for the (***) and (***).

                                      -59-
<PAGE>

(***)
(***) the (***) under various (***) for an (***), such as (***) or (***).

 .    (***) a (***) between (***) in (***) of the (***) or (***).

 .    (***) a (***) for (***) or (***).

 .    (***) a (***) on a (***) on (***).

 .    (***) a (***) of (***) on a (***) on (***).

                                      -60-
<PAGE>

                                  SCHEDULE G
                                  ----------

                          TECHNICAL SUPPORT SERVICES
                          --------------------------

Ongoing technical support and emergency problem resolution will be available on
a (***) basis. Tellium supplies technical assistance support services from its
Oceanport, NJ facility.

With regards to response times, Tellium recognizes that each customer has their
own goals and objectives as well as methods of operation.  Due to this, Tellium
has adopted the policy that specific response times for technical on-site
assistance will be defined to meet each individual customer's needs.  Tellium
represents and warrants that Tellium's 24 hour technical support telephone
service will provides customers communications with Tellium technical support
personnel within (***) of the initial call from the customer to the help line at
1-888-TELLIUM (1-888-835-5486).

     ------------------------------------------------------------------------
     Level of Outage                     Technical Support

     ------------------------------------------------------------------------
     Out-of-Service                      Tellium provides on-site technical
     (Failure causes service             support within (***); Tellium (***).
     outage)

     ------------------------------------------------------------------------
     Service Impaired                    (***) technical support provided
     (System is operational, but         within (***).
     Quality of service is
     compromised; e.g.
     performance monitoring
     software is malfunctioning)

     ------------------------------------------------------------------------
     Non-service affecting               (***) technical support is scheduled
                                         by (***).
     ------------------------------------------------------------------------

                                      -61-
<PAGE>

                                  SCHEDULE H
                                  ----------

                       TELLIUM REPAIR AND RETURN POLICY
                       --------------------------------

     The Aurora Optical Switches are equipped with field replaceable modules.
     Tellium's routine or non-emergency repair & returns policy is to repair or
     replace a defective module (***) from receipt and Tellium represents that
     it will repair or replace Products within such time period. If products
     returned to Tellium are determined to be beyond repair, Tellium shall so
     notify Qwest of the need to replace such product.

     Tellium provides a standard emergency repair and return service within
     (***), or, whenever possible, ships replacement parts within (***). Tellium
     can maintain a (***) for (***) (see Spares plan) to (***) ((***) if
     distance permits), once negotiated with Qwest.

The Tellium routine Repair and Return service is managed via a return
authorization process.
          This process is as follows:

     1         When a module is suspected as being defective (hardware or
               software), the customer calls Tellium's Customer Service number.

     2         If it is determined that the module is indeed defective, the
               customer is issued a Return Authorization Number for tracking and
               shipping to Tellium. Customer is responsible for shipping
               expenses to Tellium.

     3         The defective module will then be repaired or replaced and
               returned to the customer. Tellium is responsible for shipping
               expenses back to the customer.

     4         Repair of module(s) still under warranty is (***) unless it is
               determined that the defect was caused by (***).

     5         Repair of module(s) not covered under warranty will be charged at
               the rate of (***). If repaired cost is greater than (***) of
               individual module cost, module will be replaced rather than
               repaired. Tellium to notify QWEST prior to replacement of
               modules. Qwest will be invoiced at the then agreed upon charge.

                                      -62-
<PAGE>

                                  SCHEDULE I
                                  ----------

                        Software Maintenance Agreement
                        ------------------------------

MAINTENANCE AND SUPPORT.

A.   Supplier shall provide maintenance and support through the (***) after the
date of delivery of the Software (***) in accordance with Section 13.6(c) of the
Purchase Agreement.  Thereafter, if Qwest elects to receive software support,
Qwest shall pay an annual fee of (***) ((***)) as a Maintenance Fee.

B.   Supplier shall provide (***), (***) support for answering questions
regarding operation of the Software and for reporting problems with the
Software.

C.   Supplier shall provide (***) for any (***) or comparable (***) or (***) in
the Software and regular preventive maintenance. (***) that Response time for
service affecting problems will be within (***).

D.   Supplier shall provide (***), (***), (***), (***), (***) of the same type
and quality that Supplier provides to its customers who are covered by a fixed
effort/budgeted maintenance agreement. Without modification of the terms and
conditions of the Agreement, additional new features or customer specific
features shall be subject to charges negotiated between Qwest and Supplier from
time to time.

E.   Supplier shall provide (***) technical support (***).  Qwest agrees to pay
for such (***) at the rates indicated in Schedule C, Products and Pricing of the
Purchase Agreement.

F.   Maintenance and support shall not include the following:  (a) (***); (b)
(***); (c) repair of damage resulting from (***), (***), (***), or (***) other
than (***), unless any such acts are the result of (***) or (***) or (***); (d)
(***), or (***) or (***), (***), or (***);  (e) such service that is (***) to
render because of (***) in the (***) or (***), (***), (***), or (***) provided
by someone other than an (***) of (***), (***) of (***); (h) (***) and (***);
(i) (***) or (***) necessitated by use of (***) or (***).

G.   Supplier assumes no responsibility if anyone other than an authorized
Supplier representative modifies or otherwise tampers with the hardware,
Software, or operating system except in the manner set forth in the
Documentation or otherwise at Supplier's direction.

H.   Charges for any maintenance services or other work performed by Supplier
stemming from any of the above exclusions will be separately invoiced to Qwest
at

                                      -63-
<PAGE>

Supplier's time and expense rates in effect at the time such services are
rendered. Prior written notice must be provided to and approved by Qwest, if
charges for maintenance services or other work

                                      -64-
<PAGE>

                                  SCHEDULE J
                                     (***)

(***), (***) to (***) on the Aurora Optical Switch (***) for (***).  The Aurora
Optical Switch is designed to provide automated service delivery and restoration
of optical services in primarily regional and national networks.  Its initial
capacity delivers 1.28 terabytes of switching bandwidth or 512 optical channels
at 2.5 Gbps.  Each of the interfaces supports either SONET or SDH signals under
software control.  The Aurora Optical Switch operates at optical signal speeds
up to 10 Gbps and is designed for service providers that anticipate high rates
of growth in their network locations.  The Aurora Optical Switch is modular and
designed to grow to many times its initial capacity while the network and
product remain in service.
(***), (***) the (***).  The Aurora Full Spectrum is an all optical switch
currently in development. The Aurora Full Spectrum is designed to combine a pure
optical switch matrix capable of switching at OC-768 and faster signal speeds.
It supports the mesh networking while switching optical traffic at more than 40
Gbps. StarNet - Service Delivery and Restoration Software. StarNet is the
operating system software for the optical switches. The StarNet software
provides the communication between switches, routes optical signals around
network failures and performs optical service provisioning for the mesh network.
StarNet mesh algorithms allow many working paths to share a single protection
path, saving equipment costs in traditional ring networks. Wavelength Management
System - Element Management Software. The Wavelength Management System provides
fault location, network configuration, performance monitoring and analysis, and
network security. In addition, this system provides the capability to operate,
administer, maintain and provision the entire optical switching network, not
just individual network elements.
     When used in combination with DWDM transport systems, Aurora switches
enable service providers to automate the delivery of optical services, reduce
their costs by enabling optical mesh networking, restore optical services in the
event of network failures and redirect traffic around network bottlenecks.
Aurora switches also provide the ability to connect the new generation of high-
speed IP routers and switches directly to the optical network without requiring
additional expensive SONET/SDH equipment. The diagram below describes the
typical use and network architecture Aurora products support.

                                      -65-

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