Document:

<PAGE>

                                                                 EXHIBIT 10.5

                 FIRST AMENDMENT TO PENINSULA MARINA AND
                   OFFICE PARK OFFICE LEASE AGREEMENT

     THIS FIRST AMENDMENT TO PENINSULA MARINA AND OFFICE PARK OFFICE LEASE
AGREEMENT is made and entered into as of February 15, 1999, by and between
MARINA INVESTMENTS, INC. ("Landlord"), and INTERWAVE COMMUNICATIONS, INC., a
California corporation ("Tenant").

                           R E C I T A L S:

     A. Landlord and Tenant have entered into that certain Peninsula Marina
and Office Park Office Lease Agreement ("Lease") dated January 8, 1999, with
respect to certain premises (the "Premises") consisting of approximately
27,909 rentable square feet, located in Peninsula Marina Office Park, and
described therein as Suite 101 in Building 650, Suite 101 in Building 652,
Suites 101, 103, 105, 106, 108, 200, 302 and 304 in Building 656 and Suites
105 and 205 in Building 658, Bair Island Road, Redwood City, California
94063-2704.

     B. Tenant desires to expand the Premises to include the approximately
624 rentable square feet located in Building 652, Suite 105, Bair Island
Road, Redwood City and depicted on EXHIBIT A hereto as the "Expansion Area."

                                 AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing Recitals and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Landlord and Tenant hereby agree as follows:

     1. AMENDMENT OF PARAGRAPH 1.6. Paragraph 1.6 of the Lease is hereby
amended and restated in its entirety to read as follows:

        "1.6 PREMISES. Effective upon the Expansion Date (defined below), the
     term "Premises" shall mean Suite 101 in Building 650, Suites 101 and 105
     in Building 652, Suites 101, 103, 105, 106, 108, 200, 302 and 304 in
     Building 656 and Suites 105 and 205 in Building 658, Bair Island Road,
     Redwood City, California 94063-2704, as more particularly outlined on
     the drawing attached hereto as EXHIBIT A and incorporated herein by
     reference. As used herein, "Premises" shall not include any storage
     area, which may be leased or rented pursuant to separate agreement."

     2. AMENDMENT OF PARAGRAPH 1.7. Paragraph 1.7 of the Lease is hereby
amended and restated in its entirety to read as follows:

<PAGE>
          "1.7  RENTABLE AREA OF THE PREMISES.  Effective upon the Expansion
     Date, the term "Rentable Area of the Premises" shall mean 28,533 square
     feet, which Landlord and Tenant stipulate to be the rentable area of the
     Premises."

     3.     AMENDMENT OF PARAGRAPH 1.13.  Effective upon the Expansion Date,
the Base Rent schedule set forth in Paragraph 1.13 shall be amended as
follows:

                                 Monthly Base
                Months               Rent              Annual Base Rent
                ------           ------------          ----------------

     Expansion Date -9            $63,668.40              $764,020.80
                 10-21            $71,051.00              $852,612.00
                 22-33            $75,612.00              $907,344.00
                 34-49            $79,892.00              $958,704.00

     4.     AMENDMENT OF PARAGRAPH 1.14.  Paragraph 1.14 of the Lease is
hereby amended and restated in its entirety to read as follows:

            "1.14  TENANT'S PERCENTAGE SHARE.  Effective upon the Expansion
     Date, the term "Tenant's Percentage Share" shall mean 32.97% with respect
     to increases in Property Taxes and Operating Expenses (as such terms are
     hereinafter defined)."

     5.     EXPANSION OF PREMISES.  Effective February 15, 1999 (the
"Expansion Date"), the Premises covered by the Lease shall be expanded to
include the approximately 624 rentable square feet of the office space
located in Building 652, Suite 105, Bair Island Road, Redwood City and
depicted on EXHIBIT A hereto as the Expansion Area." The Expansion Area
shall be delivered by Landlord to Tenant in its "AS IS" condition. Any and
all improvements which Tenant desires to make to the Expansion Area shall be
made in accordance with the terms of the Lease.

      6.     EXHIBIT A. "Exhibit A" to the Lease is hereby deleted and
replaced with EXHIBIT A attached hereto.

                                      -2-

<PAGE>

     7.  RATIFICATION. Except to the extent expressly amended or modified
hereby, the Landlord and Tenant hereby ratify and reaffirm each of the
covenants, agreements, obligations, representations and warranties set forth
in the Lease.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as
of the date first above written.

LANDLORD:                               TENANT:

MARINA INVESTMENTS, INC.,               INTERWAVE COMMUNICATIONS, INC.,
a Delaware Corporation                  a California Corporation

By: /s/ Rim Antoine Hindieh             By: /s/ Illegible
   -----------------------------            -----------------------------------
Title: Rim Antoine Hindieh              Title: Chairman, President & CEO
       -------------------------               --------------------------------
             President
                                        By:
                                             ----------------------------------

                                        Title:
                                               --------------------------------

                                       3

<PAGE>

                           MARINA AND OFFICE PARK

                           OFFICE LEASE AGREEMENT

                         entered into by and between

                       Marina Investment, Inc., Landlord

                                      and

                   interWAVE Communications, Inc., Tenant

<PAGE>

                            TABLE OF CONTENTS

                                                                          PAGE
                                                                          ----

ARTICLE 1   DEFINITIONS..................................................    1

      1.1   Landlord.....................................................    1
      1.2   Tenant.......................................................    1
      1.3   Project......................................................    1
      1.4   Buildings....................................................    1
      1.5   Building.....................................................    1
      1.6   Premises.....................................................    1
      1.7   Rentable Area of the Premises................................    1
      1.8   Common Areas.................................................    1
      1.9   Lease........................................................    1
      1.10  Lease Term...................................................    1
      1.11  Commencement Date............................................    1
      1.12  Expiration Date..............................................    2
      1.13  Base Rent....................................................    2
      1.14  Tenant's Percentage Share....................................    2
      1.15  Base Year....................................................    2
      1.16  Security Deposit.............................................    2
      1.17  Tenant's Permitted Use.......................................    2
      1.18  Business Hours...............................................    2
      1.19  Landlord's Address for Notices...............................    2
      1.20  Tenant's Address for Notices.................................    2
      1.21  Tenant's Address for Notices (Before Tenant Takes Possession
            of Premises..................................................    2
      1.22  Guarantor(s).................................................    2

ARTICLE 2   PREMISES.....................................................    2

      2.1   Lease of Premises............................................    2
      2.2   Acceptance of Premises.......................................    3
      2.3   Rentable Area of the Premises................................    3
      2.4   Right of First Offer.........................................    3

ARTICLE 3   TERM.........................................................    4

ARTICLE 4   RENTAL.......................................................    4

      4.1   Definitions..................................................    4
            (A) "Base Year"..............................................    4
            (B) "Property Taxes".........................................    4
            (C) "Operating Expenses".....................................    4
      4.2   Base Rent....................................................    7
      4.3   Adjustment Procedure; Estimates..............................    7
      4.4   Review of Landlord's Statement...............................    7
      4.5   Payment......................................................    8
      4.6   Late Charge; Interest........................................    9
      4.7   Additional Rental............................................    9

ARTICLE 5   ADDITIONAL TAXES.............................................    9

ARTICLE 6   SECURITY DEPOSIT.............................................    9

ARTICLE 7   USE OF PREMISES..............................................    9

      7.1   Tenant's Permitted Use.......................................    9

                                       i

<PAGE>

<TABLE>

   <S>   <C>  <C>                                                          <C>
         7.2  Compliance With Laws and Other Requirements..................  9
         7.3  Hazardous Materials.......................................... 10

    ARTICLE 8 UTILITIES AND SERVICES....................................... 11

         8.1  Building Services............................................ 11
         8.2  Interruption of Services..................................... 13

    ARTICLE 9 MAINTENANCE AND REPAIRS...................................... 13

         9.1  Landlord Repairs............................................. 13
         9.2  Tenant Repairs............................................... 13
         9.3  Request for Repairs.......................................... 13
         9.4  Tenant Damages............................................... 13
         9.5  Landlord's Rights............................................ 14

    ARTICLE 10 ALTERATIONS, ADDITIONS AND IMPROVEMENTS..................... 14

         10.1 Landlord's Consent; Conditions............................... 14
         10.2 Performance of Alterations Work.............................. 14
         10.3 Liens........................................................ 14
         10.4 Lease Termination............................................ 15

    ARTICLE II INDEMNIFICATION AND INSURANCE............................... 15

         11.1 Indemnification.............................................. 15
         11.2 Property Insurance........................................... 16
         11.3 Liability Insurance.......................................... 16
         11.4 Workers' Compensation Insurance.............................. 16
         11.5 Policy Requirements.......................................... 17
         11.6 Waiver of Subrogation........................................ 17
         11.7 Failure to Insure............................................ 17

    ARTICLE 12 DAMAGE OR DESTRUCTION....................................... 17

         12.1 Damage....................................................... 17
         12.2 Reconstruction............................................... 17
         12.3 Rent Abatement............................................... 17
         12.4 Excessive Damage or Destruction.............................. 17
         12.5 Uninsured Casualty........................................... 18
         12.6 Waiver....................................................... 18
         12.7 Exception to Landlord's Obligations.......................... 18

    ARTICLE 13 CONDEMNATION................................................ 18

         13.1 Taking....................................................... 18
         13.2 Award........................................................ 18
         13.3 Temporary Taking............................................. 18

    ARTICLE 14 LANDLORD'S OPTION........................................... 19

    ARTICLE 15 ASSIGNMENT AND SUBLETTING................................... 19

         15.1 Restriction.................................................. 19
         15.2 Notice to Landlord........................................... 19
         15.3 Landlord's Recapture Rights.................................. 19
         15.4 Landlord's Consent; Standards................................ 19
         15.5 Additional Rent.............................................. 20
         15.6 Landlord's Costs............................................. 20

</TABLE>

                                   ii

<PAGE>

<TABLE>
<S>                                                                         <C>

     15.7  Continuing Liability of Tenant................................   20
     15.8  Non-Waiver....................................................   20

ARTICLE 16 DEFAULT AND REMEDIES..........................................   20

     16.1  Events of Default by Tenant....................................  20
     16.2  Landlord's Right to Terminate Upon Tenant Default..............  21
     16.3  Landlord's Right to Continue Lease Upon Tenant Default.........  21
     16.4  Right of Landlord to Perform...................................  22
     16.5  Default Under Other Leases.....................................  22
     16.6  Non-Waiver.....................................................  22
     16.7  Cumulative Remedies............................................  22
     16.8  Default by Landlord............................................  22

ARTICLE 17 ATTORNEYS' FEES: COSTS OF SUIT.................................  23

     17.1  Attorneys' Fees................................................  23
     17.2  Indemnification................................................  23

ARTICLE 18 SUBORDINATION AND ATTORNMENT...................................  23

     18.1  Subordination..................................................  23
     18.2  Attornment.....................................................  23
     18.3  Mortgage and Ground Lessor Protection..........................  24

ARTICLE 19 QUIET ENJOYMENT................................................  24

ARTICLE 20 RULES AND REGULATIONS..........................................  24

ARTICLE 21 ESTOPPEL CERTIFICATES..........................................  24

ARTICLE 22 ENTRY BY LANDLORD..............................................  25

ARTICLE 23 LANDLORD'S LEASE UNDERTAKINGS - EXCULPATION FROM
           PERSONAL LIABILITY; TRANSFER OF LANDLORD'S INTEREST............  25

     23.1  Landlord's Lease Undertaking...................................  25
     23.2  Transfer of Landlord's Interest................................  26

ARTICLE 24 HOLDOVER TENANCY...............................................  26

ARTICLE 25 NOTICES........................................................  26

ARTICLE 26 MISCELLANEOUS..................................................  26

     26.1  Entire Agreement...............................................  26
     26.2  Amendments.....................................................  26
     26.3  Successors.....................................................  26
     26.4  Force Majeure..................................................  27
     26.5  Survival of Obligations........................................  27
     26.6  Light and Air..................................................  27
     26.7  Governing Law..................................................  27
     26.8  Severability...................................................  27
     26.9  Captions.......................................................  27
     26.10 Interpretation.................................................  27
     26.11 Independent Covenants..........................................  27
     26.12 Number and Gender..............................................  27
     26.13 Time is of the Essence.........................................  27
     26.14 Joint and Several Liability....................................  27

</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                         <C>

     26.15  Exhibits......................................................  27
     26.16  Offer to Lease................................................  27
     26.17  No Counterclaim; Choice of Laws...............................  28
     26.18  Rights Reserved by Landlord...................................  28
</TABLE>

                                       iv

<PAGE>

                       PENINSULA MARINA AND OFFICE PARK

                            OFFICE LEASE AGREEMENT

     THIS LEASE ("Lease"), dated as of JAN 8, 1999, is made and entered into
by and between Marina Investments, Inc. ("Landlord") and interWAVE
Communications, Inc., a California corporation (hereinafter "Tenant") upon
the following terms and conditions.

                                   ARTICLE 1

                                  DEFINITIONS

     Unless the context otherwise specifies or requires, the following terms
shall have the meanings specified herein:

     1.1  LANDLORD.  "Landlord" means Marina Investments, Inc.

     1.2  TENANT.  "Tenant" means interWAVE Communications, Inc.

     1.3  PROJECT.  "Project" means the land, buildings, improvements and
common areas comprising the Peninsula Marina Office Park.

     1.4.  BUILDINGS.  The term "Buildings" shall mean those office buildings
located in the Project, Building Nos. 650, 652, 654, 656, 658 and any
additional buildings that may be constructed hereafter, together with all
related land, improvements, common areas, driveways, sidewalks and landscaping.

     1.5.  BUILDING.  The term "Building" shall mean each of the buildings
in which the Leased Premises is located.

     1.6.  PREMISES.  The term "Premises" shall mean Suite 101 in Building
650, Suite 101 in Building 652, Suites 101, 103, 105, 106, 108, 200, 302 and
304 in Building 656 and Suites 105 and 205 in Building 658, Bair Island Road,
Redwood City, California 94063-2704, as more particularly outlined on the
drawing attached hereto as EXHIBIT A and incorporated herein by reference.
As used herein, "Premises" shall not include any storage area, which may be
leased or rented pursuant to separate agreement.

     1.7  RENTABLE AREA OF THE PREMISES.  The term "Rentable Area of the
Premises" shall mean 27,909 square feet, which Landlord and Tenant stipulate
to be the Rental Area of the Premises.

     1.8  COMMON AREAS.  The term "Common Areas" shall mean all areas in the
Project not reserved for the exclusive use of the Landlord, Tenant, or any
other tenant, including the areas on individual floors devoted to corridors,
fire vestibules, elevator foyers, lobbies, electric and telephone closets,
restrooms, mechanical rooms, janitor closets and other similar facilities for
the benefit of all tenants (or invitees) on the particular floor, parking
facilities, walkways and landscaped areas.  Landlord retains the right to
make changes in boundaries and in facilities, and to grant exclusive rights
over certain Common Areas.  Landlord retains the right to the user and
licensing of the use of, the exterior walls and roof of the Buildings and to
the name of the Project.

     1.9  LEASE.  The term "Lease" shall mean this Lease document and any
Exhibits and Addenda attached hereto now or in the future.

     1.10  LEASE TERM.  The term "Lease Term" shall mean the period between
the Commencement Date and the Expiration Date (as such terms are hereinafter
defined), unless sooner terminated or renewed as otherwise provided in this
Lease.

     1.11  COMMENCEMENT DATE.  Subject to adjustment as provided in Article
3, the term

                                       1

<PAGE>

"Commencement Date" shall mean September 1, 1998.

    1.12 EXPIRATION DATE. The term "Expiration Date" shall mean September 30,
2002.

    1.13 BASE RENT. Subject to adjustment as provided in Article 4, the term
"Base Rent" shall mean:

<TABLE>
<CAPTION>
                                Monthly Base
         Months                     Rent                  Annual Base Rent
         ------                 ------------              ----------------
         <S>                    <C>                       <C>
          1-4                    $57,014.00                 $684,168.00
          5-9                    $62,202.00                 $746,424.00
          10-21                  $69,491.00                 $833,892.00
          22-33                  $73,959.00                 $887,508.00
          34-49                  $78,145.00                 $937,740.00
</TABLE>

which Base Rent is calculated in accordance with the Rent Schedule attached
hereto and incorporated herein.

    1.14 TENANT'S PERCENTAGE SHARE. The term "Tenant's Percentage Share"
shall mean 32.25% with respect to increases in Property Taxes and Operating
Expenses (as such terms are hereinafter defined).

    1.15 BASE YEAR. The term "Base Year" shall mean the calendar year 1998.

    1.16 SECURITY DEPOSIT. The term "Security Deposit" shall mean Forty-Four
Thousand Nine Hundred Sixteen and 10/100's Dollars ($44,916.10), currently
held by Landlord.

    1.17 TENANT'S PERMITTED USE. The term "Tenant's Permitted Use" shall mean
general office and development and light manufacturing (using no heavy
equipment) of electronic equipment use.

    1.18 BUSINESS HOURS. The term "Business Hours" shall mean the hours of
8:00 a.m. to 6:00 p.m., Monday through Friday and with respect to Building
656 only, also the hours of 9:00 a.m. to 1:00 p.m., Saturday (federal and
state holidays excepted).

    1.19 LANDLORD'S ADDRESS FOR NOTICES. The term "Landlord's Address for
Notices" shall mean: Peninsula Marina Office Park, 650 Bair Island Road,
Suite 204, Redwood City, California 94063-2704.

    1.20 TENANT'S ADDRESS FOR NOTICES. The term "Tenant's Address for
Notices" shall mean 656 Bair Island Road, Suite 108, Redwood City, California
94063-2704.

    1.21 (Intentionally Omitted.)

    1.22 (Intentionally Omitted.).

                                   ARTICLE 2

                                   PREMISES

    2.1 LEASE OF PREMISES. Landlord hereby leases the Premises to Tenant, and
Tenant hereby leases the Premises from Landlord, upon all of the terms,
covenants and conditions contained in this Lease. On the Commencement Date
described herein, Landlord shall deliver the Premises to Tenant "AS IS"
except only for any covenants or representations made in any attached
addendum and Tenant accepts the Premises in its present condition and
acknowledges that Landlord has no responsibility or obligation to make any
tenant improvements whatsoever. Notwithstanding the foregoing, Landlord shall
repair and take such other measures as are necessary to eliminate flooding in
the breezeway between Buildings 656 and 658 of the Project.

                                       2

<PAGE>

     2.2 ACCEPTANCE OF PREMISES. Tenant acknowledges that Landlord has not
made any representation or warranty with respect to the condition of the
Premises or the Building or with respect to the suitability or fitness of
either for the conduct of Tenant's Permitted Use or for any other purpose.

     2.3 RENTABLE AREA OF THE PREMISES. The square feet referred to in
paragraph 1.7 of the Lease reflects Landlord's good faith estimate of the
approximate rentable area of the Premises based upon information supplied to
Landlord by its architect.

     2.4 RIGHT OF FIRST OFFER.

         (A) Landlord shall make a one-time offer to Tenant as provided below
in the event that Landlord, in its sole and absolute discretion, desires to
lease premises within the Project adjacent to any portion of the Premises
("Adjacent Premises") to any party other than the then-current tenant of
such premises, provided that each of the following conditions is met: (1)
Tenant is not then in default under this Lease beyond the expiration of any
applicable cure period and has not, at any prior time during the Term, been
in default of any material term this Lease after expiration of any applicable
grace or cure period; and (ii) interWAVE Communications, Inc., a California
corporation, shall be and have been during the entire Term the Tenant under
this Lease and shall not have made any sublet in the aggregate in excess of
5,000 square feet of rentable area, assignment or other transfer of this
Lease, the Premises or any portion thereof during the Term.

         (B) Any offer of a Adjacent Premises by Landlord to Tenant shall be
upon the following terms and conditions: (1) Landlord's offer to Tenant shall
be at a rental and such upon other economic and business terms as Landlord
intends to offer the Adjacent Premises to third parties; (2) except as may be
otherwise expressly provided in Landlord's offer, the lease shall not provide
any construction allowance or tenant improvement allowance to Tenant but
shall provide that Tenant is responsible to accept the offered premises in
"AS-IS" condition and, at Tenant's sole cost and expense, to do
construction and installation work in and to the new premises to prepare the
same for use by Tenant, in accordance with the applicable criteria of
Landlord; (3) the use permitted under such lease shall be the same as
Tenant's Permitted Use specified in Section 1.17 of this Lease; and (4) the
lease shall otherwise be upon the terms and conditions of this Lease.

         (C) For a period of fourteen (14) days following Landlord's offer,
Tenant shall have the right to accept the offer by written notice given to
Landlord. In the event that Landlord, at the time of making its offer to
Tenant, shall have provided Tenant with execution copies of a written lease
agreement embodying the offered terms, which execution copies shall conform
to the requirements of this Section 2.4, Tenant's written notice of
acceptance of Landlord's offer shall be effective only if such execution
copies are duly executed and delivered by Tenant to Landlord at the time
notice of acceptance is given. If Landlord's offer is not accompanied by
execution copies, Tenant shall execute and return to Landlord execution
copies of a written lease agreement embodying the offered terms within ten
(10) days after Landlord sends the same to Tenant.

         (D) In the event that Tenant shall fail to accept any offer made by
Landlord as provided in the foregoing provisions of this Section 2.4,
Landlord shall have no further obligation whatsoever to offer to Tenant such
Adjacent Premises or to negotiate with Tenant for a lease covering the
Adjacent Premises, unless Landlord fails to lease such Adjacent Premises to a
third party for no less than ninety-five percent (95%) of the rental offered
to Tenant (taking into account all financial terms of the Lease, including,
but not limited to, base rent, tenant improvement allowances and free rent
periods). In the event that Landlord desires to offer the Adjacent Premises
for lease at a market rate of less than ninety-five percent (95%) of the
rental Landlord offered Tenant, than Landlord shall offer the Adjacent
Premises to Tenant again in accordance with the provisions of this
Section 2.4.

                                       3

<PAGE>

                                   ARTICLE 3

                                     TERM

    Except as otherwise provided in this Lease, the Lease Term shall be for
the period described in Section 1.10 of this Lease, commencing on the
Commencement Date described in Section 1.11 of this Lease and ending on the
Expiration Date described in Section 1.12 of this Lease; provided, however,
that, if, for any reason, Landlord is unable to deliver possession of the
Premises on the date described in Section 1.11 of this Lease, Landlord shall
not be liable for any damage caused thereby, nor shall the Lease be void or
voidable, but, rather, the Lease Term shall commence upon, and the
Commencement Date shall be, the date that possession of the Premises is so
tendered to Tenant (except for Tenant-caused delays which shall not be deemed
to delay commencement of the Lease Term), and the Expiration Date described
in Section 1.12 of this Lease shall be extended by an equal number of days.

    As of the date of this Lease, Tenant occupies the Demised Premises
pursuant to a written lease dated August 1, 1994, as amended (the "Existing
Lease"). The term of the Existing Lease is hereby terminated as of 11:59 p.m.
on the day immediately preceding the commencement of the term of this Lease,
in the same manner as if such date were originally specified in the Existing
Lease as the date the term thereof expired.

                                   ARTICLE 4

                                    RENTAL

    4.1  DEFINITIONS. As used herein,

         (A) "Base Year" shall mean the calendar year 1998. Tenant shall be
responsible for paying Tenant's Percentage Share of the increase in Building
Operating Expenses, if any, above the Operating Expenses for the Base Year
and the Tenant's Percentage Share of increases in Property Taxes over
Property Taxes during the Base Year. The Base year figure for Building
Operating Expenses and Property Taxes shall be based on an assumed ninety-five
percent (95%) occupancy level with real property taxes to be projected as if
fully assessed.

         (B) "Property Taxes" shall mean all payments and related expenses
paid or incurred by Landlord with respect to taxes and assessments affecting
the Project or the Premises, including without limitation, any form of real
property tax, assessment, special assessment(s), transit tax or assessment,
benefit assessment, business or license fee or tax, commercial rental tax,
and any tax or similar imposition in substitution for any of the foregoing
imposed by any governmental or quasi-governmental authority, including but
not limited to any increases in any such tax as a result of any sale,
transfer, financing, refinancing or exchange of the Project, or any part
thereof, and any reasonable attorneys' fees, accounting and appraisal fees
and other costs incurred in connection with any proceedings to contest or
determine any taxes or assessments. "Property Taxes" shall not include any
federal, state or local net income, franchise, gift, estate or inheritance
tax; or any documentary transfer, stamp, recording or other similar transfer
tax assessed upon a transfer of an interest of Landlord in the Project. With
respect to improvements within the Project the construction of which is
typically financed by a loan or loans secured by all or a portion of land
comprising a project or by the investment made by the owner of a project, in
the event Landlord elects to finance the construction of such improvements by
means of the creation of a special assessment district covering only the
Project or by means of bonded indebtedness repayable through the imposition
of a special tax exclusively upon the Project, neither the assessments
attributable to such special assessment district nor any such special tax
shall be included within "Property Taxes" for purposes of determining the
amount Tenant is required to pay pursuant to Article 4.

         (C) "Operating Expenses" shall mean all costs, fees, disbursements
and expenses paid or incurred by or on behalf of Landlord in the operation,
ownership, maintenance, insurance, management, replacement and repair of the
Project (excluding Property Taxes) including without limitation:

                                       4

<PAGE>

[GRAPHIC]

[graphic shows layout of unit 101 & 102]

<PAGE>

              (i)    Premiums for property, casualty, liability, rent
interruption and other types of insurance carried by Landlord.

              (ii)   Salaries, wages and other amounts paid or payable to
personnel including the Project manager, superintendent, operation and
maintenance staff, and other employees of Landlord involved in the
maintenance and operation of the Project, including contributions and
premiums towards fringe benefits, unemployment, disability and worker's
compensation insurance, pension plan contributions and similar premiums and
contributions and the total charges of any independent contractors or
property managers engaged in the operation, repair, care, maintenance and
cleaning of any portion of the Project.

              (iii)  Cleaning expenses, including without limitation
janitorial services, window cleaning, and garbage and refuse removal.

              (iv)   Landscaping expenses, including without limitation
irrigating, trimming, fertilizing, and replacing plants.

              (v)    Heating, ventilating, air conditioning and
steam/utilities expenses, including fuel, gas, electricity, water, sewer,
telephone, and other services.

              (vi)   The cost of maintaining, operating, repairing and
replacing components of equipment or machinery, including without limitation
heating, refrigeration, ventilation, electrical, plumbing, mechanical,
elevator, escalator, sprinklers, fire/life safety, security and energy
management systems, including service contracts, maintenance contracts,
supplies and parts.

              (vii)  Other items of repair or maintenance of elements of the
Project.

              (viii) The cost of the rental of any machinery or equipment and
the cost of supplies used in the maintenance and operation of the Project.

              (ix)   Audit fees and the cost of accounting services incurred
in the preparation of statements referred to in this Lease and financial
statements, and in the computation of the rents and charges payable by
tenants of the Project.

              (x)    The costs of improvements, repairs, or replacements to
the Project or the equipment or machinery used in connection with the
Building if the capital improvement is made after the date of this Lease and
is intended to reduce Operating Expenses; provided, however, any such costs
which are properly charged to a capital account shall not be included in
Operating Expenses in a single year but shall instead be amortized over their
useful lives, as reasonably determined by the Landlord in accordance with
generally accepted accounting principles, and only the annual amortization
amount shall be included in the Operating Expenses for a particular year.

              (xi)   Reasonable legal fees and expenses, including, but not
limited to, such expenses that relate to seeking or obtaining reductions in
or refunds of Property Taxes, or components thereof.

              (xii)  A fee for the administration and management of the
Building appropriate to the first class nature of the Building as reasonably
determined by the Landlord from time to time.

              (xiii) The cost of any improvements, capital expenditures,
repairs or replacements to the Project, or any equipment or machinery used in
connection with the Project, if any such item is required under governmental
laws, regulations, ordinances, or interpretations thereof, which were not
applicable to the Project at the time the Project was constructed; provided,
however, that any such costs which are properly charged to a capital account
shall not be payable in a single year but shall instead be amortized over
their useful lives,

                                       5

<PAGE>

as reasonably determined by the Landlord in accordance with generally
acceptable accounting principles, and only the annual amortization amount
(prorated based on the number of days of the Lease term in the calendar year)
shall be payable by the Tenant with respect to any calendar year.

          Notwithstanding anything contained in this Section 4.1, Operating
Expenses shall not include the following:

              (a) Fines or penalties which Landlord incurs by reason of its
failure to comply with applicable laws.

              (b) Fines, penalties or damages which Landlord incurs by reason
of its failure to perform any obligation under this Lease or under other
leases of premises in the Premises;

              (c) Any items for which Landlord is reimbursed by insurance or
otherwise compensated, to the extent of the net receipts from such insurance
or compensation, including direct reimbursement by any tenant or occupant of
the Project (exclusive of reimbursement pursuant to a provision similar to
Article 4 of this Lease);

              (d) The costs and expenses incurred by Landlord in performing
work necessary to remedy violations of code requirements concerning Project
improvements where such code requirements were applicable at the time of the
initial installation or construction of such improvements;

              (e) The cost of providing or performing improvements, work or
repairs to or within the premises of another tenant or occupant of the
Project where such improvements are of a nature which are not Landlord's
responsibility to perform pursuant to this Lease, except where Landlord may
do such improvements, work or repairs both to such other premises and to the
Premises;

              (f) Costs associated exclusively with the operation of the
marina and related recreational facilities;

              (g) Legal and other fees, leasing commissions, advertising
expenses and other costs incurred exclusively in connection with the leasing
of the Project;

              (h) Costs attributable to enforcing leases against other
tenants in the Project, such as attorneys' fees, court costs, adverse
judgments and similar expenses;

              (i) Depreciation on maintenance or operating equipment if and
to the extent that the replacement cost thereof is or has previously been
included within Operating Expenses;

              (j) Reserve funds for expenses anticipated to be incurred in
later calendar years;

              (k) Any interest or principal payments on financing secured by
a deed of trust or mortgage on the Project;

              (l) Costs associated exclusively with the operation of the
business of the entity which constitutes Landlord which are not directly
related to the operation of the Project and which relate to the following:
the formation of the entity which constitutes Landlord, the internal
accounting and legal matters which relate exclusively to preparation of the
tax returns and financial statements of such entity, together with the
gathering of data therefor, the cost of defending any lawsuits with any
mortgage (except as the actions of Tenant may be an issue); the costs of
selling, syndication, financing, mortgaging or hypothecating any of
Landlord's interest in the real property and improvements constituting the
Project; and the costs of any dispute between Landlord and any employee to
the extent that the other costs attributable to the

                                     6

<PAGE>

employment of such employee are not permitted to be included within Operating
Expenses pursuant to this Lease; and

               (m) The cost of inspecting, monitoring and remediating
Hazardous Materials brought onto the Project by Landlord or its employees or
agents;

          In the case of any Operating Expense that is a capital expenditure
in accordance with generally accepted accounting principles for the office
building industry, the amount payable by Tenant under this Lease in respect of
such expenditure shall be determined by amortizing the expenditure over a
useful life determined by Landlord in accordance with such accounting
principles, and Landlord may include a provision for interest on the
remaining unamortized balance.

     4.2  BASE RENT. During the Lease Term, Tenant shall pay to Landlord as
rental for the Premises the Base Rent described in Section 1.12 above,
subject to the following adjustments (herein called the "Rent Adjustments").
During each calendar year subsequent to the Base Year, the Base Rent payable
by Tenant to Landlord shall be increased by (collectively, the "Tax and
Operating Expense Adjustment"): (i) Tenant's Percentage Share of the total
dollar increase, if any, in Property Taxes paid or incurred by Landlord
during such year over Property Taxes for the Base Year, and (ii) Tenant's
Percentage Share of the total dollar increase, if any, in Operating Expenses
paid or incurred by Landlord during such year over Operating Expenses paid or
incurred by Landlord during the Base Year.

     4.3  ADJUSTMENT PROCEDURE; ESTIMATES. The Tax and Operating Expense
Adjustment specified in Section 4.2 shall be determined and paid as follows:

          (A)  During each calendar year subsequent to the Base Year,
Landlord shall give Tenant written notice of its estimate of any increased
amounts payable under Section 4.2 for that calendar year. On or before the
first day of each calendar month during the calendar year. Tenant shall pay
to Landlord one-twelfth (1/12th) of such estimated amounts, provided,
however, that, not more often than quarterly, Landlord may, by written notice
to Tenant, revise its estimate for such year, and subsequent payments by
Tenant for such year shall be based upon such revised estimate.

          (B)  Within ninety (90) days after the close of each calendar year
or as soon thereafter as is practicable, Landlord shall deliver to Tenant a
statement of that year's actual Property Taxes and Operating Expenses, as
determined and certified by Landlord (the "Landlord's Statement") and such
Landlord's Statement shall be binding upon Landlord and Tenant, except as
provided in Section 4.4 below. If the amount of the actual Tax and Operating
Expenses is more than the estimated payments for such calendar year made by
Tenant, Tenant shall pay the deficiency to Landlord upon receipt of
Landlord's Statement. If the amount of the actual Tax and Operating Expenses
is less than the estimated payments for such calendar year made by Tenant,
any excess shall be credited against Rent (as hereinafter defined) next
payable by Tenant under this Lease or, if the Lease Term has expired, any
excess shall be paid to Tenant. No delay in providing the statement described
in this subparagraph (B) shall act as a waiver of Landlord's right to payment
under Section 4.2.

          (C)  If this Lease shall terminate on a day other than the end of a
calendar year, the amount of the Tax and Operating Expense Adjustment to be paid
pursuant to Section 4.1 that is applicable to the calendar year in which such
termination occurs shall be prorated on the basis of the number of days from
January 1 of the calendar year to the termination date bears to 365. The
termination of this Lease shall not affect the obligations of Landlord and
Tenant pursuant to Section 4.2 to be performed after such termination.

     4.4  REVIEW OF LANDLORD'S STATEMENT.  Provided that Tenant is not then
in default under this Lease and provided further that Tenant strictly
complies with the provisions of this Section 4.4, Tenant shall have the
right, once each calendar year, to reasonably review supporting data for any
portion of a Landlord's Statement that Tenant claims is incorrect, in
accordance with the following procedure:

                                       7

<PAGE>

          (A) Tenant shall, within ten (10) business days after any such
Landlord's Statement is delivered, deliver a written notice to Landlord
specifying the portions of the Landlord's Statement that are claimed to be
incorrect, and Tenant shall simultaneously pay to Landlord all amounts due
from Tenant to Landlord as specified in the Landlord's Statement. Except as
expressly set forth in subsection (C) below, in no event shall Tenant be
entitled to withhold, deduct, or offset any monetary obligation of Tenant to
Landlord under the Lease (including without limitation, Tenant's obligation
to make all payments of Base Rent including the CPI Adjustment, if any, and
all payments of Tenant's Tax and Operating Expense Adjustment) pending the
completion of and regardless of the results of any review of records under
this paragraph. The right of Tenant under this paragraph may only be
exercised once for any Landlord's Statement, and if Tenant fails to meet any
of the above conditions as a prerequisite to the exercise of such right, the
right of Tenant under this paragraph for a particular Landlord's Statement
shall be deemed waived.

          (B) Tenant acknowledges that Landlord may maintain its records for
the Building at Landlord's office, Landlord's attorneys' offices or
Landlord's accountants offices and Tenant agrees that any review of records
under this section shall be at the sole expense of Tenant and shall be
conducted by an independent firm of certified public accountants of national
standing. Tenant acknowledges and agrees that any records reviewed under this
paragraph constitute confidential information of Landlord, which shall not be
disclosed to anyone other than the accountants performing the review and the
principals of Tenant who receive the results of the review. Tenant
acknowledges that Tenant shall not be entitled to review Landlord's financial
statements or tax returns or any leases, operating agreements, reciprocal
easement agreements or other agreements with tenants or occupants of the
Project. The disclosure of such information to any other person, whether or
not caused by the conduct of Tenant, shall constitute a material breach of
this Lease. Landlord, depending on the nature of Tenant's written notice, may
elect to make its records for the Building available to Tenant's accountants
at Landlord's office.

          (C) Any errors disclosed by the review shall be promptly corrected
by Landlord, provided, however, that if Landlord disagrees with any such
claimed errors. Landlord shall have the right to cause another review to be
made by an independent firm of certified public accountants of national
standing. In the event of a disagreement between the two accounting firms,
the review that discloses the least amount of deviation from the Landlord's
Statement shall be deemed to be correct. In the event that the results of the
review of records taking into account, if applicable, the results of any
additional review caused by Landlord reveal that Tenant has overpaid
obligations for a preceding period, the amount of such overpayment shall be
credited against Tenant's subsequent installment obligations to pay the
estimated Tax and Operating Expense Adjustment. In the event that such results
show that Tenant has underpaid its obligations for a preceding period, Tenant
shall be liable for Landlord's accounting fees, and the amount of such
underpayment shall be paid by Tenant to Landlord with the next succeeding
installment obligation of estimated Tax and Operating Expense Adjustment.

     4.5 PAYMENT. Concurrent with the execution hereof, Tenant shall pay
Landlord Base Rent for the first calendar month of the Term. Thereafter, Base
Rent described in Section 1.13, as adjusted as provided in Section 4.2, shall
be payable in advance on the first day of each calendar month, the prepaid Base
Rent for such partial month shall be prorated in the proportion that the
number of days this Lease is in effect during such partial month bears to the
total number of days in the calendar month. All prepaid Base Rent, and all
other amounts payable to Landlord by Tenant pursuant to the provisions of
this Lease, shall be paid to Landlord, without notice, demand, abatement,
deduction or offset, in lawful money of the United States at Landlord's
office in the Building or to such other person or at such other place as
Landlord may designate from time to time by written notice given to Tenant.
No payment by Tenant or receipt by Landlord of a lesser amount than the
correct Rent due hereunder shall be deemed to be other than a payment on
account; nor shall any endorsement or statement on any check or any letter
accompanying any check or payment be deemed to effect or evidence an accord
and satisfaction; and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance or pursue any other
remedy in this Lease or at law or in equity provided.

                                       8

<PAGE>

     4.6     LATE CHARGE; INTEREST.  Other remedies for non-payment of rent
notwithstanding, if any Monthly Base Rent payment or of additional rent is
not received by Landlord on or before the 10th day of the month next
following the month in which Tenant was invoiced, a late charge of ten
percent (10%) of such past due amount shall become due and payable in
addition to such amounts owed under this Lease.

     4.7     ADDITIONAL RENTAL.  For purposes of this Lease, all amounts
payable by Tenant to Landlord pursuant to this Lease, whether or not
denominated as such, shall constitute additional rental hereunder. Such
additional rental, together with the Base Rent and Rent Adjustments, shall
sometimes be referred to in this Lease as "Rent."

                                   ARTICLE 5

                               ADDITIONAL TAXES

     In addition to the Base Rent and other charges to be paid by Tenant
hereunder, Tenant shall reimburse Landlord upon demand for any and all taxes
payable by or imposed upon Landlord upon or with respect to: any fixtures or
personal property located in the Premises; any leasehold improvements made
in or to the Premises by or for Tenant; the Rent payable hereunder,
including, without limitation, any gross receipts tax, license fee or excise
tax levied by any governmental authority; the possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy of any portion
of the Premises (including without limitation any applicable possessory
interest taxes); or this transaction or any document to which Tenant is a
party creating or transferring an interest or an estate in the Premises.

                                   ARTICLE 6

                               SECURITY DEPOSIT

     Landlord and Tenant acknowledge and agree that Tenant has previously
deposited with Landlord the Security Deposit described in Section 1.16 above.
The Security Deposit is made by Tenant to secure the faithful performance of
all the terms, covenants and conditions of this Lease to be performed by
Tenant. If Tenant shall default with respect to any covenant of provision
hereof, Landlord may use, apply or retain all or any portion of the Security
Deposit to cure such default or to compensate Landlord for any loss or damage
which Landlord may suffer thereby. If Landlord so uses or applies all or any
portion of the Security Deposit, Tenant shall immediately upon written demand
deposit cash with Landlord in an amount sufficient to restore the Security
Deposit to the full amount hereinabove stated. Landlord shall not be required
to keep the Security Deposit separate from its general accounts and Tenant
shall not be entitled to interest on the Security Deposit. Within thirty (30)
days after the expiration of the Lease Term and the vacation of the Premises
by Tenant, the Security Deposit, or such part as has not been applied to cure
the default, shall be returned to Tenant.

                                   ARTICLE 7

                               USE OF PREMISES

     7.1     TENANT'S PERMITTED USE.  Tenant shall use the Premises only for
Tenant's Permitted Use as set forth in Section 1.16 above and shall not use
or permit the Premises to be used for any other purpose. Tenant shall, at its
sole cost and expense, obtain all governmental licenses and permits required
to allow Tenant to conduct Tenant's Permitted Use.

     7.2     COMPLIANCE WITH LAWS AND OTHER REQUIREMENTS.

             (A)     Tenant shall not use the Premises, or permit the
Premises to be used in any manner which: (a) violates any law, ordinance,
regulation or directive of any governmental authority having jurisdiction,
including without limitation any Certificate of Occupancy, or any covenant,
condition or restriction affecting the Building or the Premises; (b) causes
or is reasonably likely to cause damage to the Building or the Premises; (c)
violates a requirement or

                                       9

<PAGE>

condition of any fire and extended insurance policy covering the Building
and/or the Premises, or increases the cost of each policy; (d) constitutes or
is reasonably likely to constitute a nuisance, annoyance or inconvenience to
other tenants or occupants of the Project or interferes with the use and
occupancy of any portion of the Project for other tenants or occupants; (e)
impairs or is reasonably likely to impair the proper maintenance, operation
or repair of the Project or its equipment, facilities or systems; (f)
interferes with, or is reasonably likely to interfere with, the transmission
or reception of microwave, television, radio, telephone, or other
communication signals by antennae or other facilities located in the Project;
or (g) violates the Rules and Regulations described in Article 20.

     (B) In addition to any other amounts payable by Tenant to Landlord
hereunder, Tenant shall pay to Landlord, as when billed by Landlord and as
additional rent, Tenant's Percentage Share of the cost of any improvements,
capital expenditures, repairs or replacements to the Building, or any
equipment or machinery used in connection with the Building, if any such item
is required under governmental laws, regulations, ordinances, or
interpretations thereof; however, any such costs that are properly charged to
a capital account shall not be payable in a single year but instead shall be
amortized over their useful lives, as determined by the Landlord in accordance
with generally accepted accounting practices, and only the annual
amortization amount (prorated based on the number of days of the Lease term
in the calendar year) shall be payable by Tenant with respect to any calendar
year.

     (C) COMPLIANCE WITH ADA REQUIREMENTS. Without limiting the generality
of the foregoing, Tenant shall promptly comply with all requirements of the
American with Disabilities Act and the regulations promulgated thereunder in
effect from time to time ("ADA Requirements").

          Tenant shall have exclusive responsibility for compliance with ADA
Requirements pertaining to the interior of the Premises, including for the
design and construction of the access thereto and egress therefrom. Landlord
shall have responsibility for compliance with ADA Requirements which affect
the common areas of the Building, subject to Tenant's obligations to pay for
its share of the expense of such compliance pursuant to Article 4 of this
Lease. Tenant shall comply promptly with any direction of any governmental
authority having jurisdiction which imposes any duty upon Tenant or Landlord
with respect to Premises or with respect to the use or occupation thereof,
and Tenant agrees to furnish Landlord with a copy of any such direction
promptly after receipt of the same. In addition, Tenant shall comply with
any reasonable plan adopted by Landlord which is designed to fulfill the
requirements of any Laws, including ADA Requirements.

          Should compliance by Tenant with this Paragraph require Landlord's
consent pursuant to Article 10, Tenant shall promptly seek such consent,
provide the assurances and documents required by said Article and, following
receipt of such consent, promptly comply with the provisions of such Article
and this Paragraph.

          If Tenant fails to comply as required in this Paragraph, after
notice to Tenant, Landlord may comply of cause compliance, in which case
Tenant shall reimburse Landlord upon demand for Landlord's costs incurred in
connection therewith.

     7.3  HAZARDOUS MATERIALS.

          (A) No Hazardous Materials, as defined herein, shall be Handled, as
also defined herein, upon, about, above or beneath the Premises or any
portion of the Project by or on behalf of Tenant, its subtenants or its
assignees, or their respective contractors, clients, officers, directors,
employees, agents, or invitees. Any such Hazardous Materials so Handled shall
be known as Tenant's Hazardous Materials. Notwithstanding the foregoing,
normal quantities of those Hazardous Materials customarily used in the
conduct of general administrative and executive office activities (e.g.,
copier fluids and cleaning supplies) may be used and stored at the Premises
without Landlord's prior written consent, but only in compliance with all
applicable Environmental Laws, as defined herein.

                                      10

<PAGE>

     (B) Notwithstanding the obligation of Tenant to indemnify Landlord
pursuant to this Lease, Tenant shall, at its sole cost and expense, promptly
take all actions required by any federal, state or local governmental agency
or political subdivision, or necessary for Landlord to make full economic
use of the Premises or any portion of the Project, which requirements or
necessity arises from the Handling of Tenant's Hazardous Materials upon,
about, above or beneath the Premises or any portion of the Project. Such
actions shall include, but not be limited to, the investigation of the
environmental condition of the Premises or any portion of the Building, the
preparation of any feasibility studies or reports and the performance of any
cleanup, remedial, removal or restoration work. Tenant shall take all actions
necessary to restore the Premises or any portion of the Building to the
condition existing prior to the introduction of Tenant's Hazardous Materials,
notwithstanding any less stringent standards or remediation allowable under
applicable Environmental Laws. Tenant shall nevertheless obtain Landlord's
written approval prior to undertaking any actions required by this Section,
which approval shall not be unreasonably withheld so long as such actions
would not potentially have a material adverse long-term or short-term effect
on the Premises or any portion of the Project.

     (C) "Environmental Laws" means and includes all now and hereafter
existing statutes, laws, ordinances, codes, regulations, rules, rulings,
orders, decrees, directives, policies and requirements by any federal, state
or local governmental authority regulating, relating to, or imposing
liability or standards of conduct concerning public health and safety or the
environment.

     (D) "Hazardous Materials" means: (a) any material or substance: (i)
which is defined or becomes defined as a "hazardous substance," "hazardous
waste," "infectious waste," "chemical mixture or substance," or "air
pollutant" under Environmental Laws; (ii) containing petroleum, crude oil or
any fraction thereof which is liquid at standard conditions of temperature
and pressure; (iii) containing polychlorinated biphenyls (PCB's); (iv)
containing asbestos; (v) which is radioactive, or (b) any other pollutant or
contaminant or hazardous, toxic, flammable or dangerous chemical, waste,
material or substance, as all such terms are used in their broadest sense,
and defined, regulated or become regulated by Environmental Laws, or which
cause a nuisance upon or waste to the Premises or any portion of the Building.

     (E) "Handle," "Handled," or "Handling" shall mean any installation,
handling, generation, storage, treatment, use, disposal, discharge, release,
manufacture, refinement, presence, migration, emission, abatement, removal,
transportation, or any other activity of any type in connection with or
involving Hazardous Materials.

                                   ARTICLE 8

                            UTILITIES AND SERVICES

     8.1 BUILDING SERVICES. As long as Tenant is not in default under this
Lease, Landlord agrees to furnish or cause to be furnished to the Premises
the following utilities and services, subject to the conditions and standards
set forth herein:

         (A) During Business Hours, non-attended automatic elevator service,
Monday through Friday.

         (B) During Business Hours, Monday through Friday, such air
conditioning, heating and ventilation as, in Landlord's judgment, are
required for the comfortable use and occupancy of the Premises; provided,
however, that if Tenant shall require heating, ventilation or air conditioning
in excess of that which Landlord shall be required to provide hereunder,
Landlord shall provide such heating, ventilation or air conditioning upon
Tenant's written request made at least three (3) hours before Tenant desires
to use heating, ventilation or air conditioning outside Business Hours on a
Monday through Friday and at least five (5) hours before the end of Business
Hours on the last week day that is not a holiday before Tenant desires to use
such heating, ventilation or air conditioning on a Saturday, Sunday or
holiday. Within ten (10) days of receiving an invoice therefor, Tenant shall
pay Landlord Landlord's established rates per hour, per Building for the use
of overtime heating, ventilation or air conditioning, which rates may be
adjusted from time to time, which rates shall reflect Landlord's actual cost
of providing such

                                       11

<PAGE>

utilities, with no profit to Landlord.

          (C)  At all reasonable times, electric current as required for
building standard lighting and fractional horsepower office machines;
provided, however, that: (i) without Landlord's consent, Tenant shall not
install, or permit the installation, in the Premises of any computers, word
processors, electronic data processing equipment or other type of equipment
or machines which will increase Tenant's use of electric current in excess of
that which Landlord is obligated to provide hereunder (provided, however,
that the foregoing shall not preclude the use of personal computers or
similar office equipment); (ii) if Tenant shall require electric current
which may disrupt the provision of electrical service to other tenants,
Landlord may condition its consent upon Tenant's payment of the cost of
installing and providing any additional facilities required to furnish such
excess power to the Premises and upon the installation in the Premises of
electric current meters to measure the amount of electric current consumed,
in which latter event Tenant shall pay for the cost of such meter(s) and the
cost of installation, maintenance and repair thereof, as well as for all
excess electric current consumed at the rates charged by the applicable local
public utility, plus a reasonable amount to cover the additional expenses
incurred by Landlord in keeping account of the electric current so consumed;
and (iii) if Tenant's increased electrical requirements will materially
affect the temperature level in the Premises or the Building, Landlord's
consent may be conditioned upon Tenant's requirement to pay such amounts as
will be incurred by Landlord to install and operate any machinery or
equipment necessary to restore the temperature level to that otherwise
required to be provided by Landlord, including but not limited to the cost of
modifications to the air conditioning system. Landlord shall not, in any way,
be liable or responsible to Tenant for any loss or damage or expense which
Tenant may incur or sustain if, for any reasons beyond Landlord's control,
either the quantity or character of electric service is changed or is no
longer available or suitable for Tenant's requirements. Tenant covenants that
at all times its use of electric current shall never exceed the capacity of
the feeders, risers or electrical installations of the Building. Landlord
shall provide at Landlord's cost no more than 5.0 Watts per useable square
foot of floor area of the Premises per Business Hour for both lighting and
power, and Landlord shall provide additional power to the Premises, as
needed, subject to the restrictions set forth above, at Tenant's sole cost
and expense pursuant to the provisions set forth below. A submeter on the
second floor Building 656 measures Tenant's electrical usage in a portion of
the Premises. The parties agree that Tenant's electrical usage each month per
Watt per useable square foot of floor area of the Premises per Business Hour
shall be deemed to be the total Watts used in the submetered portion of the
Premises during such month (as measured by the submeter) divided by the total
number of Business Hours during such month divided by the number of usable
square feet of floor area in the submetered portion of the Premises (the
"Actual Watts Used"). In the event the Actual Watts Used exceeds 5.0 Watts,
Tenant shall pay to Landlord each month within ten (10) days after receiving a
bill therefor the difference between the Actual Watts Used and 5.0 Watts
multiplied by the price charged per Watt per hour by the applicable local
electric utility used by Landlord in the Project multiplied by the number of
Business Hours in the applicable month multiplied by the total number of
usable square feet of floor area of the Premises. If submetering of
electricity in the Building will not be permitted under future laws or
regulations, the Rent will then be equitably and periodically adjusted to
include an additional payment to Landlord reflecting the cost to Landlord for
furnishing electricity to Tenant in the Premises.

          (D)  Water for drinking and rest room purposes.

          (E)  Reasonable janitorial and cleaning services, provided that the
Premises are used exclusively for office purposes and are kept reasonably in
order by Tenant. If the Premises are not used exclusively as offices, or if
the Tenant elects and Landlord consents, the Premises shall be kept clean and
in order by Tenant, at Tenant's expense, to the reasonable satisfaction of
Landlord and by persons approved by Landlord; and, in all events, Tenant
shall pay to Landlord the cost of removal of Tenant's refuse and rubbish, to
the extent that the same exceeds the refuse and rubbish attendant to normal
office usage.

     Any amounts which Tenant is required to pay to Landlord pursuant to this
Section 8.1 shall be payable upon demand by Landlord and shall constitute
additional rent.

                                      12

<PAGE>

     8.2 INTERRUPTION OF SERVICES. Landlord shall not be liable for any
failure to furnish, stoppage of, or interruption in furnishing any of the
services or utilities described in Section 8.1, and, in such event, Tenant
shall not be entitled to any damages nor shall any failure or interruption
abate or suspend Tenant's obligation to pay Base Rent and additional rent
required under this Lease or constitute or be construed as a constructive or
other eviction of Tenant. Further, in the event any governmental authority or
public utility promulgates or revises any law, ordinance, rule or regulation,
or issues mandatory controls or voluntary controls relating to the use or
conservation of energy, water, gas, light or electricity, the reduction of
automobile or other emissions, or the provision of any other utility or
service, Landlord may take any reasonably appropriate action to comply with
such law, ordinance, rule, regulation, mandatory control or voluntary
guideline without affecting Tenant's obligations hereunder. If utilities
provided by Landlord are interrupted for a period of more than three
consecutive days and such interruption is due to Landlord's fault or the
failure of equipment under Landlord's control, and if the Premises are
thereby rendered untenantable for the use intended, then during the period of
utility interruption, the Base Rental payable hereunder shall be abated, and
Tenant shall not be required to pay any charge for utilities provided by
Landlord.

                                    ARTICLE 9

                              MAINTENANCE AND REPAIRS

    9.1 LANDLORD REPAIRS. Landlord shall not be required to make any
improvements, replacements or repairs of any kind or character to the Premises
during the Term of this Lease except as are set forth in this Section.
Landlord shall maintain only the roof, the mechanical equipment of the
Building, lighting, HVAC, foundation, parking, Common Areas, the structural
soundness of the load bearing, exterior walls and exterior glass. In
addition, Landlord shall repair and maintain interior, load bearing walls to
the extent that the need for such repair or maintenance is not caused by
Tenant's negligent or willful act or omission or an alteration to the
Premises made by Tenant. Notwithstanding anything to the contrary contained
herein. Landlord shall have no responsibility to maintain, repair or replace
any heating, ventilation and air conditioning units in the Premises
installed at any time by Tenant at Tenant's sole cost and expense ("Tenant's
HVAC"). Landlord's cost of maintaining and repairing the items set forth in
this Section are subject to the additional Rent provisions in Section 4.1(C).
Landlord shall not be liable to Tenant, except as expressly provided in this
Lease, for any damage or inconvenience, and Tenant shall not be entitled to
any damages nor to any abatement or reduction of Rent by reason of any
repairs, alterations or additions made by Landlord under this Lease. Except
for Landlord's obligations under this Section, it is intended by the parties
that Landlord shall have no obligation, in any manner whatsoever, to repair
and maintain the Premises, nor the Project, nor the equipment therein,
whether structural or non-structural, all of which obligations are intended
to be Tenant's obligations under this Lease. Tenant expressly waives the
benefit of any statute now or hereinafter in effect which would otherwise
afford Tenant the right to make repairs at Landlord's expense or to terminate
this Lease because of Landlord's failure to keep the Premises in good order,
condition and repair.

     9.2 TENANT REPAIRS. Tenant, at its own cost and expense, shall maintain
the Premises in a good condition (except for the items that are the
responsibility of Landlord under Section 9.1). Without limiting the
generality of the foregoing, Tenant shall maintain and keep in good repair
(including replacement when necessary): (a) the interior of the Premises,
including walls (except as set forth in Section 9.1 above), floors and
ceilings; (b) all interior windows and doors, including frames, glass,
skylights, molding and hardware; (c) all wires and plumbing within the
Premises which serve the Premises (as distinguished from those serving the
Building generally); (d) all signs, air conditioning and heating equipment,
including Tenant's HVAC, mechanical doors and other mechanical equipment
situated on or in the Premises or serving the Premises (as distinguished
from those serving the Property generally); and (e) those utility
facilities that are not Landlord's responsibility hereunder. Tenant shall
further make all other repairs to the Premises made necessary by Tenant's
failure to comply with its obligations under this Section. All fixtures
installed by Tenant shall be new or shall have been completely and recently
reconditioned.

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<PAGE>

     9.3   REQUEST FOR REPAIRS.  All requests for repairs or maintenance that
are the responsibility of the Landlord pursuant to any provision of this
Lease must be made in writing to Landlord at the address in Section 1.8.

     9.4   TENANT DAMAGES.  Tenant, its agents, invitees or representatives
shall not cause any damage to be committed on any portion of the Premises or
Project, and at the expiration or earlier termination of this Lease, by lapse
of time or otherwise. Tenant shall deliver the Premises to Landlord in as
good condition as existed at the Commencement Date of this Lease, ordinary
wear and tear excepted. The cost and expense of any repairs necessary to
restore the condition of the Premises shall be borne by Tenant.
Notwithstanding anything to the contrary contained herein, Tenant shall leave
all electrical distribution systems, lighting fixtures, space heaters, air
conditioning, plumbing and other power systems upon the Premises in good
operating condition. In the event Tenant fails to perform Tenant's
obligations of repairs and maintenance under this Section, Landlord may at
its option, but shall not be required to, enter upon the Premises after ten
(10) days prior written notice to Tenant (except in case of an emergency, in
which case no notice shall be required), to perform such obligations on
Tenant's behalf and to place the Premises in good order, condition and
repair, and Tenant shall pay the cost thereof, together with any interest
thereon at the maximum rate allowed by law, as Additional Rent to Landlord.

     9.5   LANDLORD'S RIGHTS.  Landlord and its contractors shall have the
right, at all reasonable times, to enter upon the Premises to make any
repairs to the Premises or the Building reasonably required or deemed
reasonably necessary by Landlord and to erect such equipment, including
scaffolding, as is reasonably necessary to effect such repairs. Provided
Landlord shall first provide Tenant with 24 hours prior notification; except
when such notification is not required in cases involving and emergency
situation.

                                      ARTICLE 10

                         ALTERATIONS, ADDITIONS AND IMPROVEMENTS

     10.1  LANDLORD'S CONSENT; CONDITIONS.  Tenant shall not make or permit to
be made any alterations, additions, or improvements in or to the Premises
("Alterations") without the prior written consent of Landlord. Landlord may
impose as a condition to such consent such requirements as Landlord in its
sole discretion deems necessary or desirable including without limitation;
Tenant's submission to Landlord, for Landlord's prior written approval, of
all plans and specifications relating to the Alterations; Landlord's prior
written approval of the time or times when the Alterations are to be
performed; Landlord's prior written approval of the contractors and
subcontractors performing work in connection with the Alterations; Tenant's
receipt of all necessary permits and approvals from all governmental
authorities having jurisdiction prior to the construction of the Alterations;
Tenant's written notice of whether the Alterations include the Handling of
any Hazardous Materials, pursuant to Section 7.3; Tenant's delivery to
Landlord of such bonds and insurance as Landlord shall reasonably require;
and Tenant's payment to Landlord of all costs and expenses incurred by
Landlord because of Tenant's Alterations, including but not limited to costs
incurred in reviewing the plans and specifications for, and the progress of,
the Alterations.

     10.2  PERFORMANCE OF ALTERATIONS WORK.  All work relating to the
Alterations shall be performed in compliance with the plans and
specifications approved by Landlord, all applicable laws, ordinances, rules,
regulations and directives of all governmental authorities having
jurisdiction (including without limitation Title 24 of the California Code of
Regulations) and the requirements of all carriers of insurance on the
Premises and the Project, the Board of Underwriters, Fire Rating Bureau, or
similar organization. All work shall be performed in a diligent, first class
manner and so as not to unreasonably interfere with any other tenants or
occupants of the Project. All costs incurred by Landlord relating to the
Alterations shall be payable to Landlord by Tenant as additional rent upon
demand.

     10.3  LIENS.  Tenant shall pay when due all costs for work performed and
materials supplied to the Premises. Tenant shall keep Landlord, the Premises
and the Project free from all liens, stop notices and violation notices
relating to the Alterations or any other work performed

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<PAGE>

for, materials furnished to or obligations incurred by Tenant and Tenant
shall protect, indemnify, hold harmless and defend Landlord, the Premises and
the Project of and from any and all loss, cost, damage, liability and
expense, including attorneys' fees, arising out of or related to any such
liens or notices. Further, Tenant shall give Landlord not less than seven (7)
business days prior written notice before commencing any Alterations in or
about the Premises to permit Landlord to post appropriate notices of
non-responsibility. Tenant shall secure, at Tenant's sole expense, a
completion and payments bond satisfactory to Landlord for such work, and
during the progress of such work, Tenant shall, upon Landlord's request,
furnish Landlord with sworn contractor's statements and lien waivers covering
all work theretofore performed. Tenant shall satisfy or otherwise discharge
all liens, stop notices or other claims or encumbrances within ten (10) days
after Landlord notifies Tenant in writing that any such lien, stop notice,
claim or encumbrance has been filed. If Tenant fails to pay and remove such
lien, claim or encumbrance within such ten (10) days. Landlord, at its
election, may pay and satisfy the same and in such event the sums so paid by
Landlord, with interest from the date of payment at the rate set forth in
Section 4.6 hereof for amounts owed Landlord by Tenant shall be deemed to be
additional rent due and payable by Tenant at once without notice or demand.

     10.4  LEASE TERMINATION. Except as provided in this section, upon
expiration or termination of this Lease Tenant shall surrender the Premises
to Landlord in the same condition as when received, subject to reasonable
wear and tear. All Alterations (excluding Tenant's HVAC) shall become a part
of the Premises and shall become the property of Landlord upon the expiration
or earlier termination of this Lease, unless Landlord shall, by written
notice given to Tenant, require Tenant to remove some or all of Tenant's
Alterations, in which event Tenant shall promptly remove the designated
Alterations and shall promptly repair any resulting damage, all at Tenant's
sole expense. Notwithstanding the foregoing or anything to the contrary
contained herein, Tenant shall not be required to remove, at the expiration
or sooner termination of this Lease, any alterations made by Tenant to the
Premises prior to the Commencement Date of this Lease. All business and trade
fixtures, machinery and equipment, furniture, movable partitions and items of
personal property owned by Tenant or installed by Tenant at its expense in
the Premises including, but not limited to Tenant's HVAC, shall be and remain
the property of Tenant; upon the expiration or sooner termination of this
Lease, Tenant shall, at its sole expense, remove all such items and repair
any damage to the Premises or the Building caused by such removal. If Tenant
fails to remove any such items or repair such damage promptly after the
expiration or sooner termination of the Lease, Landlord may, but need not, do
so with no liability to Tenant, and Tenant shall pay Landlord the cost
thereof upon demand.

                                  ARTICLE II

                        INDEMNIFICATION AND INSURANCE

     11.1  INDEMNIFICATION. Tenant and Tenant's officers and directors agree
to protect, indemnify, hold harmless and defend Landlord and any mortgagee or
ground lessor, and each of their respective partners, directors, officers,
agents and employees, successors and assigns, regardless of any negligence
imputed to any indemnitee from and against:

           (A)  any and all loss, cost, damage, liability or expense as
incurred (including but not limited to attorneys' fees and legal costs)
arising out of or related to any claim, suit or judgment brought by or in
favor of any person or persons for damage, loss or expense due to but not
limited to, bodily injury, including death, or property damage sustained by
such person or persons which arises out of, is occasioned by or is in any way
attributable to the use or occupancy of the Premises or any portion of the
Project by Tenant or the acts or omissions of Tenant or its agents,
employees, contractors, clients, invitees or subtenants except that caused by
the sole gross negligence of Landlord or its agents or employees. Such loss
or damage shall include, but not be limited to, any injury or damage to, or
death of, Landlord's employees or agents or damage to the Premises or any
portion of the Project.

           (B)  any and all environmental damages which arise from: (i) the
Handling of any Tenant's Hazardous Materials, as defined pursuant to
Section 7.3 or (ii) the breach of any of the provisions of this Lease. For
the purpose of this Lease, "environmental damages" shall

                                      15

<PAGE>

mean (a) all claims, judgments, damages, penalties, fines, costs,
liabilities, and losses (including without limitation, diminution in the
value of the Premises or any portion of the Building, damages for the loss of
or restriction on use of rentable or usable space or of any amenity of the
Premises or any portion of the Building, and from any adverse impact of
Landlord's marketing of space); (b) all reasonable sums paid for settlement
of claims, attorneys' fees, consultants' fees and experts' fees; and (c) all
costs incurred by Landlord in connection with investigation or remediation
relating to the Handling of Tenant's Hazardous Materials, whether or not
required by Environmental Laws, necessary for Landlord to make full economic
use of the Premises or any portion of the Building, or otherwise required
under this Lease. To the extent that Landlord is strictly liable under any
Environmental Laws, Tenant's obligation to Landlord and the other
indemnities under the foregoing indemnification shall likewise be without
regard to fault on Tenant's part with respect to the violation of any
Environmental Law which results in liability to the indemnitee.  Tenant's
obligations and liabilities pursuant to this Section 11.1 shall survive the
expiration or earlier termination of this Lease.

          Tenant shall not be liable for any damage or liability of any kind
or for any injury to or death of persons arising in the Common Areas if
caused by or resulting from any negligent or willful act or omission of
Landlord or its employees or agents, and Landlords shall indemnify, defend,
protect and save Tenant harmless from all losses, costs, damages, claims and
liability whatsoever on account of any such damage or injury; provided,
however, that Landlord's obligation to indemnify and hold harmless Tenant
pursuant to the foregoing provisions is made for the purpose of providing any
benefit from time to time available to Tenant under policies of insurance
carried by Landlord, and further provided that the foregoing provisions shall
in no event require Landlord to provide any defense to Tenant or pay any sum
to or on behalf of Tenant in addition to that which may be provided and paid
pursuant to such policies of insurance as may be carried by Landlord from
time to time.

          Tenant shall not be liable for any damage or liability of any kind
for any and all environmental damages which arise from the Handling of any
Hazardous Materials, as defined pursuant to Section 7.3, by Landlord or its
employees or agents after the date of this Lease, and Landlord shall
indemnify, defend, protect and save Tenant harmless from all losses, costs,
damages, claims and liability whatsoever on account of any such damage.

     11.2 PROPERTY INSURANCE.

          (A)  At all times during the Lease Term, Tenant shall procure and
maintain, at its sole expense, "all-risk" property insurance, in an amount
not less than on hundred percent (100%) of the replacement cost covering (a)
all leasehold improvements in and to the Premises which are made at the
expense of Tenant; and (b) Tenant's trade fixtures, equipment and other
personal property from time to time situated in the Premises.  The proceeds
of such insurance shall be used for the repair or replacement of the property
so insured, except that if not so applied or if this Lease is terminated
following a casualty, the proceeds applicable to the leasehold improvements
shall be paid to Landlord and the proceeds applicable to Tenant's personal
property shall be paid to Tenant.

          (B)  At all times during the Lease Term, Tenant shall procure and
maintain business interruption insurance in such amount as will reimburse
Tenant for direct or indirect loss of earnings attributable to all perils
insured against in Section 11.2(A).

     11.3 LIABILITY INSURANCE.

          (A)  At all times during the Lease Term, Tenant shall procure and
maintain, at its sole expense, general liability insurance applying to the
use and occupancy of the Premises and the business operated by Tenant.  Such
insurance shall have a minimum combined single limit of liability of at least
$1,000,000 per occurrence and a general aggregate limit of $2,000,000.  All
such policies shall be written to apply to all bodily injury, property
damage, personal injury losses and shall be endorsed to include Landlord and
its agents, beneficiaries, partners, employees, and any deed of trust holder
or mortgagee of Landlord or any ground lessor as additional insureds.  Such
liability insurance shall be primary and not excess or contributing to any
other

                                       16

<PAGE>

insurance as may be available to the additional insureds.

          (B) Prior to the sale, storage, use or giving away of alcoholic
beverages on or from the Premises by Tenant or another person, Tenant, at its
own expense, shall obtain a policy or policies of insurance issued by a
responsible insurance company and in a form acceptable to Landlord saving
harmless and protecting Landlord and the Premises against any and all
damages, claims, liens, judgments, expenses and costs arising under any
present or future law, statute, or ordinance of the State of California or
other governmental authority having jurisdiction of the Premises, by reason
of any storage, sale, use or giving away of alcoholic beverages on or from
the Premises. Such policy or policies of insurance shall have a minimum
combined single limit of $2 million per occurrence and shall apply to bodily
injury, fatal or nonfatal; injury to means of support; and injury to property
of any person. Such policy or policies of insurance shall name the Landlord
and its agents, beneficiaries, partners, employees and any mortgagee of
Landlord or any ground lessor of Landlord as additional insureds.

     11.4 WORKERS' COMPENSATION INSURANCE. At all times during the Lease Term,
Tenant shall procure and maintain Workers' Compensation Insurance in
accordance with the laws of the State of California, and Employer's Liability
insurance with a limit not less than $1,000,000 Bodily Injury Each Accident;
$1,000,000 Bodily Injury By Disease -- Each Person; and $1,000,000 Bodily
Injury to Disease -- Policy Limit.

     11.5 POLICY REQUIREMENTS. All insurance required to be maintained by
Tenant shall be issued by insurance companies authorized to do insurance
business in the State of California and rated not less than A-VII in Best's
Insurance Guide. A certificate of insurance (or, at Landlord's option, copies
of the applicable policies) evidencing the insurance required under this
Article shall be delivered to Landlord not less than five (5) days prior to
the Commencement Date. No such policy shall be subject to cancellation or
modification without thirty (30) days prior written notice to Landlord and to
any deed of trust holder, mortgagee or ground lessor designated by Landlord
to Tenant. Tenant shall furnish Landlord with a replacement certificate with
respect to any insurance not less than thirty (30) days prior to the
expiration of the current policy. Tenant shall have the right to provide the
insurance required by this Article pursuant to blanket policies, but only if
such blanket policies expressly provide coverage to the Premises and the
Landlord as required by this Lease.

     11.6 WAIVER OF SUBROGATION. Notwithstanding anything to the contrary
contained in this Lease, Landlord and Tenant hereby waive any rights each may
have against the other, on account of any loss or damage occasioned to
Landlord or Tenant, as the case may be, or their respective property, the
Premises, its contents or to the other portions of the Project, arising from
any risk which is covered by the property insurance actually maintained by
the other party or, if not covered, which the other party is obligated to
insure or self-insure under this Lease; and the parties each, on behalf of
their respective insurance companies insuring the property of either Landlord
or Tenant against any such loss, waive any right of subrogation that it may
have against Landlord or Tenant, as the case may be without regard to the
negligence of the party being so released. The foregoing waivers of
subrogation shall be operative only so long as available in the State where
the Project is situated and provided further that no such policy is
invalidated thereby.

     11.7 FAILURE TO INSURE. If Tenant fails to maintain any insurance which
Tenant is required to maintain pursuant to this Article, Tenant shall be
liable to Landlord for any loss or cost resulting from such failure to
maintain. Landlord shall have the right, in its sole discretion, to procure
and maintain such insurance which Tenant is required to maintain hereunder
and the cost thereof shall be deemed additional rent due and payable by
Tenant. Tenant may not self-insure against any risks required to be covered
by insurance without Landlord's prior written consent.

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<PAGE>

                                     ARTICLE 12

                                   DAMAGE OR DESTRUCTION

    12.1 DAMAGE. In the event of a casualty to the Project, the following
shall apply:

    12.2 RECONSTRUCTION. If the Premises are damaged or destroyed during the
term by a casualty typically covered by "all-risk" insurance, Landlord shall,
to the extent that insurance proceeds are available therefor and are not
applied by any lender against payment of any existing loan on the Project,
except as hereinafter provided, diligently repair or rebuild them to
substantially the same condition in which they existed immediately prior to
such damage or destruction.

    12.3 RENT ABATEMENT. The Base Rent shall be abated from the date of the
damage or destruction in the same proportion that the rentable area of the
portion of the Premises which is unusable by Tenant bears to the total
rentable area of the Premises.

    12.4 EXCESSIVE DAMAGE OR DESTRUCTION. Notwithstanding whether the
Premises have been damaged or destroyed, if any of the Buildings are damaged
or destroyed to the extent that Landlord determines that they cannot, with
reasonable diligence, be fully repaired or restored by Landlord within ninety
(90) days after the date of the damage or destruction, Landlord may terminate
this Lease. Notwithstanding whether the Premises have been damaged or
destroyed, Landlord shall determine whether any of the Buildings damaged or
destroyed can be fully repaired or restored within the ninety (90) day
period, and Landlord's reasonable determination shall be binding upon Tenant.
Landlord shall notify Tenant of its determination, in writing, within forty
five (45) days after the date of the damage or destruction. If Landlord
reasonably determines that any of the Buildings damaged or destroyed can be
fully repaired or restored within the ninety (90) day period, this Lease
shall remain in force and effect and Landlord shall diligently repair and
restore the damage as soon as reasonably possible. If Landlord is required to
or elects to restore the Premises but Landlord reasonably estimates that such
restoration may require more than one hundred eighty (180) days, then Tenant
may terminate Lease upon written notice to Landlord given within fifteen (15)
days following Landlord's notice of the estimated time for restoration.

    12.5 UNINSURED CASUALTY. Notwithstanding anything contained herein to
the contrary, in the event of damage to or destruction of all or any portion
of the Buildings, which damage is not fully covered by the insurance policies
required hereinabove, Landlord may terminate this Lease by written notice to
Tenant, given within 45 days after the date of notice to Landlord that said
damage or destruction is not so covered.

    12.6 WAIVER. With respect to any destruction to which Landlord is
obligated to repair or may elect to repair under the terms of this Article,
Tenant hereby waives all rights to terminate this Lease pursuant to rights
otherwise presently or hereafter accorded by law to Tenant including, but not
limited to, Sections 1932 and 1933 of the California Civil Code.

    12.7 EXCEPTION TO LANDLORD'S OBLIGATIONS. Notwithstanding anything to the
contrary contained in this Article, Landlord shall have no obligation to
repair the Premises if either (a) the Building is so damaged as to require
repairs to the Building exceeding 20% of the full insurable value of the
Building; or (b) Landlord elects to demolish the Building; or (c) the damage
or destruction occurs less than one year prior to the Expiration Date,
exclusive of any option periods. Further, Tenant's rent shall not be abated
if either (i) the damage or destruction is repaired within five (5) business
days after Landlord receives written notice of Tenant of the casualty, or
(ii) Tenant, or any officers, partners, employees, agents or invitees of
Tenant, or any assignee or subtenant of Tenant is, in whole or in part,
responsible for the damage or destruction.

                                      18

<PAGE>

                                  ARTICLE 13

                                 CONDEMNATION

     13.1     TAKING. If the entire Premises or so much of the Premises as
to render the balance unusable by Tenant shall be taken by condemnation, sale
in lieu of condemnation or in any other manner for any public or quasi-public
purpose (collectively "Condemnation"), this Lease shall terminate on the date
that title or possession to the Premises is taken by the condemning authority,
whichever is earlier.

     13.2     AWARD. In the event of any Condemnation, the entire award for
such taking shall belong to Landlord, except that Tenant shall be entitled to
independently pursue a separate award relating to the loss of, or damage to,
Tenant's personal property and trade fixtures and Tenant's moving costs
directly associated with the taking.  Tenant shall have no claim against
Landlord or the award for the value of any unexpired term of this Lease or
otherwise.

     13.3     TEMPORARY TAKING. No temporary taking of the Premises shall
terminate this Lease or entitle Tenant to any abatement of the Rent payable
to Landlord under this Lease; provided, further, that any award for such
temporary taking shall belong to Tenant to the extent that the award applies
to any time period during the Lease Term and to Landlord to the extent that
the award applies to any time period outside the Lease Term.

                                  ARTICLE 14

                              LANDLORD'S OPTION

[Intentionally Omitted.]

                                  ARTICLE 15

                           ASSIGNMENT AND SUBLETTING

     15.1     RESTRICTION.  Without the prior written consent of Landlord
which consent shall not be unreasonably withheld or delayed, Tenant shall
not, either voluntarily or by operation of law, assign, encumber, or
otherwise transfer this Lease or any interest herein, or sublet the Premises
or any part thereof, or permit the Premises to be occupied by anyone other
than Tenant or Tenant's employees.  An assignment, subletting or other action
in violation of the foregoing shall be void and, at Landlord's option, shall
constitute a material breach of this Lease.  For purposes of this Section, an
assignment shall not include any transfer of any interest in this Lease or
the Premises by Tenant pursuant to a merger, division, consolidation,
liquidation or stock or asset sale, or pursuant to a change in ownership of
Tenant involving a transfer of voting control in Tenant (whether by transfer
of partnership or other beneficial, corporate stock or otherwise), unless
such transaction conflicts with the rights of other occupants of the Project.
Notwithstanding anything contained in this Article to the contrary, Tenant
expressly covenants and agrees not to enter into any lease, sublease,
license, concession or other agreement for use, occupancy or utilization of
the Premises which provides for rental or other payment for such use,
occupancy or utilization based in whole or in part on the net income or
profits derived by any person from the property leased, used, occupied or
utilized (other than an amount based on a fixed percentage or percentages of
receipts or sales), and that any such purported lease, sublease, license,
concession or other agreement shall be absolutely void and ineffective as a
conveyance of any right or interest in the possession, use, occupancy or
utilization of any part of the Premises.

     15.2     NOTICE TO LANDLORD.  If Tenant desires to assign this Lease or
any interest herein, or to sublet all or any part of the Premises, then at
least twenty (20) business days prior to the effective date of the proposed
assignment or subletting, Tenant shall submit to Landlord in connection with
Tenant's request for Landlord's consent:

              (A)     A statement containing (i) the name and address of the
proposed assignee or subtenant; (ii) such financial information with respect
to the proposed assignee or subtenant

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<PAGE>

as Landlord shall reasonably require; (iii) the type of use proposed for the
Premises; and (iv) all of the principal terms of the proposed assignment or
subletting; and

              (B)     Four (4) originals of the assignment or sublease on a
form approved by Landlord and four (4) originals of the Landlord's Consent to
Sublease or Assignment and Assumption of Lease and Consent.

     15.3     LANDLORD'S RECAPTURE RIGHTS. At any time within twenty (20)
business days after Landlord's receipt of all (but not less than all) of the
information and documents described in Section 15.2 above, Landlord may, at
its option by written notice to Tenant, elect to: (a) sublease the Premises or
the portion thereof proposed to be sublet by Tenant upon the same terms as
those offered to the proposed subtenant; (b) take an assignment of the Lease
upon the same terms as those offered to the proposed assignee; or (c)
terminate the Lease as to the portion of the Premises proposed to be assigned
or sublet, with a proportionate adjustment in the Rent payable hereunder if
the Lease is terminated as to less than all of the Premises or if more than
fifty percent (50%) of the Premises are proposed to be sublet or assigned,
then Landlord may terminate this Lease in its entirety.  If Landlord does not
exercise any of the options described in the preceding sentence, then, during
the above-described twenty (20) business day period, Landlord shall either
consent or deny its consent to the proposed assignment or subletting.

     15.4     LANDLORD'S CONSENT: STANDARDS.  Landlord's consent shall not be
unreasonably withheld; but, in addition to any other grounds for denial,
Landlord's consent shall be deemed reasonably withheld if, in Landlord's good
faith judgment: (i) the proposed assignee or subtenant does not have the
financial strength to perform its obligations under this Lease or any
proposed sublease; (ii) the business and operations of the proposed assignee
or subtenant are not of comparable quality to the business and operations
being conducted by other tenants in the Building; (iii) the proposed assignee
or subtenant intends to use any part of the Premises for a purpose not
permitted under this Lease; (iv) either the proposed assignee or subtenant,
or any person which directly or indirectly controls, is controlled by, or is
under common control with the proposed assignee or subtenant occupies space
in the Project, or is negotiating with Landlord to lease space in the
Project; (v) the proposed assignee or subtenant is disreputable; or (vi) the
use of the Premises by the proposed assignee or subtenant would, in
Landlord's reasonable judgment, significantly increase the pedestrian traffic
in and out of the Building or would require any alterations to the Project to
comply with applicable laws.

     15.5     ADDITIONAL RENT.  If Landlord consents to any such assignment
or subletting, all sums or other economic consideration received by Tenant in
connection with such assignment or subletting, whether denominated as rent or
otherwise, which exceeds, in the aggregate, the total sum which Tenant is
obligated to pay Landlord under this Lease (prorated to reflect obligations
allocable to less than all of the Premises under a sublease) after tenant
recovers all of its reasonable and customary costs associated with such
sublease, including but not limited to leasing commissions, attorney's fees
and tenant improvements for the sublessee, shall be paid to Landlord as
additional rent under the Lease without affecting or reducing any other
obligation of Tenant hereunder.

     15.6     LANDLORD'S COSTS.  If Tenant shall assign this Lease or shall
sublet all or any part of the Premises or shall request the consent of
Landlord to any assignment, subletting or other act, Tenant shall pay to
Landlord as additional rent Landlord's costs related thereto, including
Landlord's reasonable attorneys' fees.

     15.7     CONTINUING LIABILITY OF TENANT.  Notwithstanding any assignment
or sublease, Tenant shall remain as fully and primarily liable for the
payment of Rent and for the performance of all other obligations of Tenant
contained in this Lease to the same extent as if the assignment or sublease
had not occurred; provided, however, that any act or omission of any assignee
or subtenant, other than Landlord, that violates the terms of this Lease
shall be deemed a violation of this Lease by Tenant.

     15.8     NON-WAIVER.  The consent by Landlord to any assignment or
subletting shall not relieve Tenant, or any person claiming through or by
Tenant, of the obligation to obtain the

                                      20

<PAGE>

consent of Landlord, pursuant to this Article, to any further
assignment or subletting. In the event of an assignment or subletting,
Landlord may collect rent from the assignee or the subtenant without waiving
any rights hereunder and collection of the rent from a person other than
Tenant shall not be deemed a waiver of any of Landlord's rights under this
Article, an acceptance of assignee or subtenant as Tenant, or a release of
Tenant from the performance of Tenant's obligations under this Lease.

                             ARTICLE 16

                       DEFAULT AND REMEDIES

     16.1  EVENTS OF DEFAULT BY TENANT. The occurrence of any of the
following shall constitute a material default and breach of this Lease by
Tenant:

           (A)  The failure by Tenant to pay Base Rent or make any other
payment required to be made by Tenant hereunder within five (5) days after
written notice thereof by Landlord to Tenant.

           (B)  The abandonment of the Premises by Tenant or the vacation of
the Premises by Tenant for six (6) consecutive months (with or without the
payment of Rent).

           (C)  The failure by Tenant to observe or perform any other
provision of this Lease to be observed or performed by Tenant, other than
those described in Sections 16.1(A) and 16.1(B) above, if such failure
continues for ten (10) days after written notice thereof by Landlord to
Tenant: provided, however, that if the nature of the default is such that it
cannot be cured within the ten (10) day period, no default shall exist if
Tenant commences the curing of the default within the ten (10) day period and
thereafter diligently prosecutes the same to completion. The ten (10) day
notice described herein shall be in lieu of, and not in addition to, any
notice required under Section 1161 of the California Code of Civil Procedure
or any other law now or hereafter in effect requiring that notice of default
be given prior to the commencement of an unlawful detainer or other legal
proceeding.

           (D)  The making by Tenant of any general assignment for the
benefit of creditors, the filing by or against Tenant of a petition under any
federal or state bankruptcy or insolvency laws (unless, in the case of a
petition filed against Tenant, the same is dismissed within thirty (30) days
after filing); the appointment of a trustee or receiver to take possession of
substantially all of Tenant's assets at the Premises or Tenant's interest in
this Lease or the Premises, when possession is not restored to Tenant within
thirty (30) days; or the attachment, execution or other seizure of
substantially all of Tenant's assets located at the Premises or Tenant's
interest in this Lease or the Premises, if such seizure is not discharged
within thirty (30) days.

     16.2  LANDLORD'S RIGHT TO TERMINATE UPON TENANT DEFAULT.  In the event
of any default by Tenant as provided in Section 16.1 above, Landlord shall
have the right to terminate this Lease and recover possession of the Premises
by giving written notice to Tenant of Landlord's election to terminate this
Lease, in which event Landlord shall be entitled to receive from Tenant:

           (A)  The worth at the time of award of any unpaid Rent which had
been earned at the time of such termination; plus

           (B)  The worth at the time of award of the amount by which the
unpaid Rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss Tenant proves could have been
reasonably avoided; plus

           (C)  The worth at the time of award of the amount by which the
unpaid Rent for the balance of the term after the time of award exceeds the
amount of such rental loss that Tenant proves could be reasonably avoided;
plus

           (D)  Any other amount necessary to compensate Landlord for all the
detriment

                                       21

<PAGE>

proximately caused by Tenant's failure to perform its obligations under this
Lease or which in the ordinary course of things would be likely to result
therefrom; and

           (E)  At Landlord's election, such other amounts in addition to or
in lieu of the foregoing as may be permitted from time to time by applicable
law.

     As used in subparagraphs (A) and (B) above, "worth at the time of award"
shall be computed by allowing interest at the rate of twelve percent (12%) per
annum, or such lower rate as shall be the then highest lawful rate. As used
in paragraph (C) above, "worth at the time of award" shall be computed by
discounting such amount at the discount rate of the Federal Reserve Bank of
San Francisco at the time of award plus one percent (1%).

     16.3  LANDLORD'S RIGHT TO CONTINUE LEASE UPON TENANT DEFAULT. In the
event of a breach of this Lease and abandonment of the Premises by Tenant, if
Landlord does not elect to terminate this Lease as provided in Section 16.2
above, Landlord may from time to time, without terminating this Lease,
enforce all of its rights and remedies under this Lease. Without limiting the
foregoing, Landlord has the remedy described in California Civil Code Section
1951.4 (Landlord may continue this Lease in effect after Tenant's breach and
abandonment and recover Rent as it becomes due, if Tenant has the right to
sublet or assign, subject only to reasonable limitations). To the fullest
extent permitted by law, the proceeds of any reletting shall be applied
first to pay to Landlord all costs and expenses of such reletting (including
without limitation, costs and expenses of retaking or repossessing the
Premises, removing persons and property therefrom, securing new tenants,
including expenses for redecoration, alterations and other costs in
connection with preparing the Premises for new tenant, and if Landlord shall
maintain and operate the Premises, the costs thereof) and receivers' fees
incurred in connection with the appointment of and performance by a receiver
to protect the Premises and Landlord's interest under this Lease and any
necessary or reasonable alterations; second, to the payment of any
indebtedness of Tenant to Landlord other than Rent due and unpaid hereunder;
third, to the payment of Rent due and unpaid hereunder; and the residue, if
any, shall be held by Landlord and applied in payment of other or future
obligations of Tenant to Landlord as the same may become due and payable, and
Tenant shall not be entitled to receive any portion of such revenue.

     16.4  RIGHT OF LANDLORD TO PERFORM.  All covenants and agreements to be
performed by Tenant under this Lease shall be performed by Tenant at Tenant's
sole cost and expense. If Tenant shall fail to pay any sum of money, other
than Rent, required to be paid by it hereunder or shall fail to perform any
other act on its part to be performed hereunder, Landlord may, but shall not
be obligated to, make any payment or after ten (10) days written notice and
opportunity to cure, except in the case of an emergency when no such notice
shall be required, perform any such other act on Tenant's part to be made or
performed, without waiving or releasing Tenant of its obligations under this
Lease. Any sums so paid by Landlord and all necessary incidental costs,
together with interest thereon at the lesser of the maximum rate permitted by
law, if any, or twelve percent (12%) per annum from the date of such payment,
shall be payable to Landlord as additional rent on demand and Landlord shall
have the same rights and remedies in the event of nonpayment as in the case
of default by Tenant in the payment of Rent.

     16.5  DEFAULT UNDER OTHER LEASES. If the term of any lease, other than
this Lease, heretofore or hereafter made by Tenant for any space in the
Project shall be terminated or terminable after the making of this Lease
because of any default by Tenant under such other lease, such fact shall
empower Landlord, at Landlord's sold option, to terminate this Lease by
notice to Tenant or to exercise any of the rights or remedies set forth in
Section 16.2.

     16.6  NON-WAIVER.  Nothing in this Article shall be deemed to affect
either parties rights to indemnification for liability or liabilities arising
prior to termination of this Lease for personal injury or property damages
under the indemnification clause or clauses contained in this Lease. No
acceptance by Landlord of a lesser sum than the Rent then due shall be deemed
to be other than on account of the earliest installment of such rent due, nor
shall any endorsement or statement on any check or any letter accompanying
any check or payment as rent be deemed an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such installment or pursue any other remedy
in the

                                       22

<PAGE>

                  Lease provided. The delivery of keys to any employee of
                  Landlord or to Landlord's agent or any employee thereof shall
                  not operate as a termination of this Lease or a surrender of
                  the Premises.

                           16.7 CUMULATIVE REMEDIES. The specific remedies to
                  which either party may resort under the terms of the Lease are
                  cumulative and are not intended to be exclusive of any other
                  remedies or means of redress to which it may be lawfully
                  entitled in case of any breach or threatened breach by either
                  party of any provisions of the Lease. In addition to the other
                  remedies provided in the Lease, either party shall be entitled
                  to a restraint by injunction of the violation or attempted or
                  threatened violation of any of the covenants, conditions or
                  provisions of the Lease or to a decree compelling specific
                  performance of any such covenants, conditions or provisions.

                           16.8 DEFAULT BY LANDLORD. Landlord's failure to
                  perform or observe any of its obligations under this Lease
                  shall constitute a default by Landlord under this Lease only
                  if such failure shall continue for a period of thirty (30)
                  days (or the additional time, if any, that is reasonably
                  necessary promptly and diligently to cure the failure) after
                  Landlord receives written notice from Tenant specifying the
                  default. The notice shall give in reasonable detail the nature
                  and extent of the failure and shall identify the Lease
                  provision(s) containing the obligation(s). If Landlord shall
                  default in the performance of any of its obligations under
                  this Lease (after notice and opportunity to cure as provided
                  herein), Tenant may pursue any remedies available to it under
                  the law and this Lease.

                                          ARTICLE 17

                                ATTORNEYS' FEES: COSTS OF SUIT

                           17.1 ATTORNEYS' FEES. If either Landlord or Tenant
                  shall commence any action or other proceeding against the
                  other arising out of, or relating to, this Lease ar the
                  Premises, the prevailing party shall be entitled to recover
                  from the losing party, in addition to any other relief, its
                  actual attorneys fees irrespective of whether or not the
                  action or other proceeding is prosecuted to judgment and
                  irrespective of any court schedule of reasonable attorneys'
                  fees. In addition, Tenant shall reimburse Landlord, upon
                  demand, for all reasonable attorneys' fees incurred in
                  collecting Rent or otherwise seeking enforcement against
                  Tenant, its sublessees and assigns, of Tenant's obligations
                  under this Lease.

                           17.2 INDEMNIFICATION. Except to the extent set forth
                  in Section 11.1 above, should Landlord be made a party to any
                  litigation instituted by Tenant against a party other than
                  Landlord, or by a third party against Tenant, Tenant shall
                  indemnify, hold harmless and defend Landlord from any and all
                  loss, cost, liability, damage or expense incurred by Landlord,
                  including attorneys' fees, in connection with the litigation.

                                          ARTICLE 18

                                 SUBORDINATION AND ATTORNMENT

                           18.1 SUBORDINATION. This Lease, and the rights of
                  Tenant hereunder, are and shall be subordinate to the
                  interests of (i) all present and future ground leases and
                  master leases of all or any part of the Building; (ii) present
                  and future mortgages and deeds of trust encumbering all or any
                  part of the Building; (iii) all past and future advances made
                  under any such mortgages or deeds of trust; and (iv) all
                  renewals, modifications, replacements and extensions of any
                  such ground leases, master leases, mortgages and deeds of
                  trust; provided, however, that any lessor under any such
                  ground lease or master lease or any mortgagee or beneficiary
                  under any such mortgage or deed of trust shall have the right
                  to elect, by written notice given to Tenant, to have this
                  Lease made superior in whole or in part to any such ground
                  lease, master lease, mortgage or deed of trust. Upon demand,
                  Tenant shall execute, acknowledge and deliver any instruments
                  reasonably requested by Landlord or any such lessor, mortgagee
                  or beneficiary to effect the purposes of this Section 18.1.
                  Such instruments may contain, among other things, provisions
                  to the effect that such lessor, mortgagee or beneficiary
                  (hereafter, for the purposes of this Section 18.1, a
                  "Successor Landlord") shall (i) not be liable for any act or
                  omission of Landlord or its

                                       23
<PAGE>

                  predecessors, if any, prior to the date of such Successor
                  Landlord's succession to Landlord's interest under this Lease;
                  (ii) not be subject to any offsets or defenses which Tenant
                  might have been able to assert against Landlord or its
                  predecessors, if any, prior to the date of such Successor
                  Landlord's succession to Landlord's interest under this Lease;
                  (iii) not be liable for the return of any security deposit
                  under the Lease unless the same shall have actually been
                  deposited with such Successor Landlord; and (iv) be entitled
                  to receive notice of any Landlord default under this Lease
                  plus a reasonable opportunity to cure such default prior to
                  Tenant having any right or ability to terminate this Lease as
                  a result of such Landlord default. Notwithstanding anything to
                  the contrary contained this Lease, this Lease shall not be
                  subordinate to any hereafter placed mortgage, deed of trust or
                  lease, unless the holder thereof shall be willing to enter
                  into a non-disturbance agreement or subordination agreement
                  with Tenant on commercially reasonable terms pursuant to
                  which, so long as Tenant is not in default of any of Tenant's
                  obligations under this Lease after notice and expiration of
                  the applicable cure periods, Tenant's possession of the
                  Premises and its rights under this Lease shall not be
                  disturbed nor terminated as a result of any default by
                  Landlord under any mortgage, deed of trust or lease or as a
                  result of foreclosure or termination of such mortgage, deed of
                  trust or lease.

                           18.2 ATTORNMENT. If requested to do so, Tenant shall
                  attorn to and recognize as Tenant's landlord under this Lease
                  any superior lessor, superior mortgagee or other purchaser or
                  person taking title to the Building by reason of the
                  termination of any superior lease or the foreclosure of any
                  superior mortgage or deed of trust, and Tenant shall, upon
                  demand, execute any documents reasonably requested by any such
                  person to evidence the attornment described in this Section.

                           18.3 MORTGAGE AND GROUND LESSOR PROTECTION. Tenant
                  agrees to give any holder of any mortgage and any ground
                  lessor, by registered or certified mail, a copy of any notice
                  of default served upon the Landlord by Tenant, provided that
                  prior to such notice Tenant has been notified in writing (by
                  way of service on Tenant of a copy of Assignment of Rents and
                  Leases, or otherwise) of the address of such mortgage holder
                  or ground lessor (hereafter the "Notified Party"). Tenant
                  further agrees that if Landlord shall have failed to cure such
                  default within twenty (20) days after such notice to Landlord
                  (or if such default cannot be cured or corrected within that
                  time, then such additional time as may be necessary if
                  Landlord has commenced within such twenty (20) days and is
                  diligently pursuing the remedies or steps necessary to cure or
                  correct such default), then the Notified Party shall have an
                  additional thirty (30) days within which to cure or correct
                  such default (or if such default cannot be cured or corrected
                  within that time, then such additional time as may be
                  necessary if the Notified Party has commenced within such
                  thirty (30) days and is diligently pursuing the remedies or
                  steps necessary to cure or correct such default). Until the
                  time allowed, as aforesaid, for the Notified Party to cure
                  such default has expired without cure, Tenant shall have no
                  right to, and shall not, terminate this Lease on account of
                  Landlord's default.

                                          ARTICLE 19

                                       QUIET ENJOYMENT

                           Provided that Tenant performs all of its obligations
                  hereunder, Tenant shall have and peaceably enjoy the Premises
                  during the Lease Term, subject to all of the terms and
                  conditions contained in this Lease.

                                          ARTICLE 20

                                    RULES AND REGULATIONS

                           The Rules and Regulations attached hereto as
                  EXHIBIT B are hereby incorporated by reference herein and
                  made a part hereof. Tenant shall abide by, and faithfully
                  observe and comply with the Rules and Regulations and any
                  reasonable and nondiscriminatory amendments, modifications
                  and/or additions thereto as may hereafter be adopted and
                  published by written notice to tenants by Landlord for the
                  safety, care, security, good order and/or cleanliness of
                  the Premises and/or Building. Landlord shall not be liable
                  to Tenant for any violation of such

                                       24

<PAGE>

rules and regulations by any other tenant or occupant of the Building.

                              ARTICLE 21

                        ESTOPPEL CERTIFICATES

     Tenant agrees at any time and from time to time upon not more than ten
(10) days' prior written notice from Landlord to execute, acknowledge and
deliver to Landlord a statement in writing addressed and certifying to
Landlord, or to the holder or assignee of any existing or prospective
mortgage encumbering the Building or any part thereof (hereafter a
"Mortgagee"), or to the lessor, or existing or prospective assignee of the
lessor's position, under any existing or prospective ground lease of the land
underlying the Project (hereafter a "Ground Lessor"), or to any prospective
purchaser of the land, improvements or both comprising the Project, that this
Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and
stating the modifications); that Tenant has accepted possession of the
Premises, which are acceptable in all respects, and that any improvements
required by the terms of this Lease to be made by Landlord have been
completed to the satisfaction of Tenant; that Tenant is in full occupancy of
the Premises; that no rent has been paid more than 30 days in advance; that
the first month's Base Rent has been paid; that Tenant is entitled to no free
rent or other concessions except as stated in this Lease; that Tenant has not
been notified of any previous assignment of Landlord's or any predecessor
landlord's interest under this Lease; the dates to which Base Rent,
additional rent and other charges have been paid; that Tenant, as of the date
of such certificate, has no charge, lien or claim of setoff under this Lease
or otherwise against Base Rent, additional rent or other charges due or to
become due under this Lease; and that Landlord is not in default in
performance of any covenant, agreement or condition contained in this Lease
or any other matter relating to this Lease or the Premises or, if so,
specifying each such default. In addition, in the event that such certificate
is being given to any Mortgagee or Ground Lessor, such statement may contain
any other provisions customarily required by such Mortgagee or Ground Lessor
including, without limitation, an agreement on the part of Tenant to furnish
to such Mortgagee or Ground Lessor, as applicable, written notice of any
Landlord default and a reasonable opportunity for such Mortgagee or Ground
Lessor to cure such default prior to Tenant being able to terminate this
Lease. Any such statement delivered pursuant to this Section may be relied
upon by Landlord or any Mortgagee, Ground Lessor or prospective purchaser to
whom it is addressed and such statement, if required by its addressee, may so
specifically state. If Tenant does not execute, acknowledge and deliver to
Landlord the statement as and when required herein, Landlord is hereby
granted a power-of-attorney, coupled with an interest and irrevocable, to
execute such statement on Tenant's behalf, which statement shall be binding
on Tenant to the same extent as if executed by Tenant.

                            ARTICLE 22

                         ENTRY BY LANDLORD

     Landlord may enter the Premises at all reasonable times to: inspect the
same; exhibit the same to prospective purchasers, lenders or tenants;
determine whether Tenant is complying with all of its obligations under this
Lease; supply janitorial and other services to be provided by Landlord to
Tenant under this Lease; post notices of non-responsibility; and make repairs
or improvements in or to the Building or the Premises; provided, however,
that all such work shall be done as promptly as reasonably possible and so as
to cause as little interference to Tenant as reasonably possible. Except to
the extent resulting from or relating to the negligence or willful misconduct
of Landlord, Tenant hereby waives any claim for damages for any injury or
inconvenience to, or interference with, Tenant's business, any loss of
occupancy or quiet enjoyment of the Premises or any other loss occasioned
by such entry. Landlord shall at all times have and retain a key with which
to unlock all of the doors in, on or about the Premises (excluding Tenant's
values, safes and similar areas designated by Tenant in writing in advance),
and Landlord shall have the right to use any and all means by which Landlord
may deem proper to open such doors to obtain entry to the Premises, and any
entry to the Premises obtained by Landlord by any such means, or otherwise,
shall not under any circumstances be deemed or construed to be a forcible or
unlawful entry into or a detainer of the Premises or an eviction,

                                       25
<PAGE>

actual or constructive, of Tenant from any part of the Premises. Such entry
by Landlord shall not act as a termination of Tenant's duties under this
Lease. If Landlord shall be required to obtain entry by means other than a
key provided by Tenant, the cost of such entry shall be payable by Tenant to
Landlord as additional rent.

                                    ARTICLE 23

                           LANDLORD'S LEASE UNDERTAKINGS
                        EXCULPATION FROM PERSONAL LIABILITY;
                          TRANSFER OF LANDLORD'S INTEREST

       23.1 LANDLORD'S LEASE UNDERTAKING. Notwithstanding anything to the
contrary contained in this Lease or in any exhibits, Riders or addenda hereto
attached (collectively the "Lease Documents"), it is expressly understood and
agreed by and between the parties hereto that: (a) the recourse of Tenant or
its successors or assigns against Landlord with respect to the alleged breach
by or on the part of Landlord of any representation, warranty, covenant,
undertaking or agreement contained in any of the Lease Documents
(collectively, "Landlord's Lease Undertakings") shall extend only to
Landlord's interest in the real estate of which the Premises demised under
the Lease Documents are a part ("Landlord's Real Estate") and not to any other
assets of Landlord or its beneficiaries; and (b) except to the extent of
Landlord's interest in Landlord's Real Estate, no personal liability or
personal responsibility of any sort with respect to any of Landlord's Lease
Undertakings or any alleged breach thereof is assumed by, or shall at any
time be asserted or enforceable against, Landlord, the individual fee owners
of the Building, or against any of their respective directors, officers,
employees, agents, constituent partners, beneficiaries, trustees or
representatives.

       23.2 TRANSFER OF LANDLORD'S INTEREST. Landlord and each successor to
Landlord shall be fully released from the performance of Landlord's
obligations subsequent to their transfer of Landlord's interest in the
Building. Landlord shall not be liable for any obligation hereunder after a
transfer of its interest in the Building.

                                    ARTICLE 24

                                 HOLDOVER TENANCY

       If Tenant holds possession of the Premises after the expiration or
termination of the Lease Term, by lapse of time or otherwise, Tenant shall
become a tenant at sufferance upon all of the terms contained herein, expect
as to Lease Term and Rent. During such holdover period, Tenant shall pay to
Landlord a monthly rental equivalent to one hundred fifty percent (150%) of
the Rent payable by Tenant to Landlord with respect to the last month of the
Lease Term. The monthly rent payable for such holdover period shall in no
event be construed as a penalty or as liquidated damages for such retention
of possession. Without limiting the foregoing, Tenant hereby agrees to
indemnify, defend and hold harmless Landlord, its beneficiary, and their
respective agents, contractors and employees, from and against any and all
claims, liabilities, actions, losses, damages (including without limitation,
direct, indirect, incidental and consequential) and expenses (including,
without limitation, court costs and reasonable attorneys' fees) asserted
against or sustained by any such party and arising from or by reason of such
retention of possession, which obligations shall survive the expiration of
termination of the Lease Term.

                                    ARTICLE 25

                                      NOTICES

      All notices which Landlord or Tenant may be required, or may desire, to
serve on the other shall be in writing and shall be deemed given upon the
earlier of may be served, personal service or upon deposit in the U.S. Mail,
registered or certified mail, postage prepaid, addressed to the Landlord at
the address for Landlord set forth in Section 1.18 above and to Tenant at the
address for Tenant set forth in Section 1.19 above, or, from and after the
Commencement Date, to the Tenant at the Premises whether or not Tenant has
departed from, abandoned or vacated the

                                       26

<PAGE>

Premises, or addressed to such other address or addresses as either
Landlord or Tenant may from time to time designate to the other in writing.
Any notice shall be deemed to have been served at the time the same was
posted.

                                   ARTICLE 26

                                  MISCELLANEOUS

     26.1  ENTIRE AGREEMENT. This Lease contains all of the agreements and
understandings relating to the leasing of the Premises and the obligations of
Landlord and Tenant in connection with such leasing. Landlord has not made,
and Tenant is not relying upon, any warranties, or representations, promises
or statements made by Landlord or any agent of Landlord, except as expressly
set forth herein. This Lease supersedes any and all prior agreements and
understandings between Landlord and Tenant and alone expresses the agreement
of the parties.

     26.2  AMENDMENTS. This Lease shall not be amended, changed or modified
in any way unless in writing executed by Landlord and Tenant. Landlord shall
not have waived or released any of its rights hereunder unless in writing and
executed by the Landlord.

     26.3  SUCCESSORS. Except as expressly provided herein, this lease and
the obligations of Landlord and Tenant contained herein shall bind and
benefit the successors and assigns of the parties hereto.

     26.4  FORCE MAJEURE. Landlord shall incur no liability to Tenant with
respect to, and shall not be responsible for any failure to perform, any of
Landlord's obligations hereunder if such failure is caused by reason of
strike, other labor trouble, governmental rule, regulations, ordinance,
statute or interpretation, or by fire, earthquake, civil commotion, or
failure or disruption of utility services, or any and all other causes
reasonably beyond control of Landlord. The amount of time for Landlord to
perform any of Landlord's obligations shall be extended by the amount of time
Landlord is delayed in performing such obligation by reason of such force
majeure occurrence.

     26.5  SURVIVAL OF OBLIGATIONS. Any obligations of Tenant accruing prior
to the expiration of the Lease shall survive the termination of the Lease,
and Tenant shall promptly perform all such obligations whether or not this
Lease has expired.

     26.6  LIGHT AND AIR. No diminution or shutting off of any light, air or
view by any structure now or hereafter erected shall in any manner affect
this Lease or the obligations of Tenant hereunder, or increase any of the
obligations of Landlord hereunder.

     26.7  GOVERNING LAW. This Lease shall be governed by, and construed in
accordance with, the laws of the State of California.

     26.8  SEVERABILITY. In the event any provision of this Lease is found to
be unenforceable, the remainder of this Lease shall not be affected, and any
provision found to be invalid shall be enforceable to the extent permitted by
law. The parties agree that in the event two different interpretations may be
given to any provision hereunder, one of which will render the provision
unenforceable, and one of which will render the provision enforceable, the
interpretation rendering the provision enforceable shall be adopted.

     26.9  CAPTIONS. All captions, headings, titles, numerical references and
computer highlighting are for convenience only and shall have no effect on
the interpretation of this Lease.

     26.10  INTERPRETATION. Tenant acknowledges that it has read and reviewed
this Lease and that it has had the opportunity to confer with counsel in the
negotiation of this Lease. Accordingly, this Lease shall be construed neither
for nor against Landlord or Tenant, but shall be given a fair and reasonable
interpretation in accordance with the meaning of its terms and the intent of
the parties.

                                      27
<PAGE>

     26.11  INDEPENDENT COVENANTS. Each covenant, agreement, obligation or
other provision of this Lease to be performed by Tenant are separate and
independent covenants of Tenant, and not dependent on any other provision of
the Lease.

     26.12  NUMBER AND GENDER. All terms and words used in this Lease,
regardless of the number or gender in which they are used, shall be deemed to
include the appropriate number and gender, as the context may require.

     26.13  TIME IS OF THE ESSENCE. Time is of the essence of this Lease and
the performance of all obligations hereunder.

     26.14  JOINT AND SEVERAL LIABILITY. If Tenant comprises more than one
person or entity, or if this Lease is guaranteed by any party, all such
persons shall be jointly and severally liable for payment of rents and the
performance of Tenant's obligations hereunder.

     26.15  EXHIBITS AND SCHEDULE. EXHIBITS A (Outline of Premises) and
B (Building Rules and Regulations) and the RENT SCHEDULE are incorporated into
this Lease by reference and made a part hereof.

     26.16  OFFER TO LEASE. The submission of this Lease to Tenant or its
broker or other agent, does not constitute an offer to Tenant to lease the
Premises. This Lease shall have no force and effect until it is executed and
delivered by Tenant to Landlord and executed by Landlord; provided, however,
that, upon execution of this Lease by Tenant and delivery to Landlord, such
execution and delivery by Tenant shall, in consideration of the time and
expense incurred by Landlord in reviewing the Lease and Tenant's credit,
constitute an offer to Lease the Premises upon the terms and conditions set
forth herein (which offer to Lease shall be irrevocable for five (5) business
days following the date of delivery).

     26.17  NO COUNTERCLAIM; CHOICE OF LAWS. It is mutually agreed that in
the event Landlord commences any summary proceeding for non-payment of Rent,
Tenant will not interpose any counterclaim of whatever nature or description
in any such proceeding, except for compulsory counterclaims. In addition,
Tenant hereby submits to local jurisdiction in the State of California and
agrees that any action by Tenant against Landlord shall be instituted in the
State of California and that Landlord shall have personal jurisdiction over
Tenant for any action brought by Landlord against Tenant in the State of
California.

     26.18  RIGHTS RESERVED BY LANDLORD. Landlord reserves the following
rights exercisable without notice (except as otherwise expressly provided to
the contrary of this Lease) and without being deemed an eviction or
disturbance of Tenant's use or possession of the Premises or giving rise to
any claim for set-off or abatement of Rent: (i) to change the name or street
address of the Building; (ii) to install, affix and maintain all signs on the
exterior and/or interior of the Building; (iii) to designate and/or approve
prior to installation, all types of signs, window shades, blinds, drapes,
awnings or other similar items, and all internal lighting that may be visible
from the exterior of the Premises; (iv) subject to the provisions of Article
22 above, to display the Premises and/or the Building to mortgagees,
prospective mortgagees, prospective purchasers and ground lessors at
reasonable hours upon reasonable advance notice to Tenant; (v) to change the
arrangement of entrances, doors, corridors, elevators and/or stairs in the
Building, provided no such change shall materially adversely affect access to
the Premises; (vi) to grant any party the exclusive right to conduct any
business or render any service in the Building, provided such exclusive right
shall not operate to prohibit Tenant from using the Premises for the purposes
permitted under this Lease; (vii) to prohibit the placement of vending or
dispensing machines of any kind in or about the Premises other than for use
by Tenant's employees; (viii) to prohibit the placement of video or other
electronic games in the Premises; (ix) to have access for Landlord and other
tenants of the Building to any mail chutes and boxes located in or on the
Premises according to the rules of the United States Post Office and to
discontinue any mail chute business in the Building; (x) to close the
Building after normal business hours, except that Tenant and its employees
and invitees shall be entitled to admission at all times under such rules and
regulations as Landlord prescribes for security purposes; (xi) to install,
operate and maintain security systems which monitor, by close circuit
television or otherwise, all persons entering or leaving the

                                      28

<PAGE>

     Building; (xiii) to install and maintain pipes, ducts, conduits, wires
     and structural elements located in the Premises which serve other parts
     or other tenants of the Building; and (xiii) to retain at all times master
     keys or pass keys to the Premises.

          IN WITNESS WHEREOF, the parties hereto have executed this Lease as
     of the date first above written.

LANDLORD:                              TENANT:

MARINA INVESTMENTS, INC.,              INTERWAVE COMMUNICATIONS, INC.,
a Delaware Corporation                 a California corporation

By: /s/ Rim Antoine Hindieh            By: /s/ [ILLEGIBLE]
   --------------------------              ----------------------------
Title:  RIM ANTOINE HENDIEH            Title: Chairman, CEO & President
      -----------------------                --------------------------
          PRESIDENT                    By:
Date:                                      ----------------------------
     ------------------------          Title:
                                             --------------------------
                                       Date:
                                             --------------------------

                                       29
<PAGE>

                                   EXHIBIT A

                                  [FLOORPLAN]

                                                   FIRST FLOOR
                                                PENINSULA MARINA
                                  652 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 1 of 7
<PAGE>

                                   EXHIBIT A

                                  [FLOORPLAN]

                                                   FIRST FLOOR
                                                PENINSULA MARINA
                                  656 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 2 of 7
<PAGE>

                                  [FLOORPLAN]

                                                  SECOND FLOOR
                                                PENINSULA MARINA
                                  656 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 3 of 7
<PAGE>

                                  [FLOORPLAN]

                                                  THIRD FLOOR
                                                PENINSULA MARINA
                                  656 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 4 of 7
<PAGE>

                                  [FLOORPLAN]

                                                   FIRST FLOOR
                                                PENINSULA MARINA
                                  658 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 5 of 7
<PAGE>

                                  [FLOORPLAN]

                                                  SECOND FLOOR
                                                PENINSULA MARINA
                                  658 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 6 of 7
<PAGE>

                                   EXHIBIT A

                                  [FLOORPLAN]

                                                   FIRST FLOOR
                                                PENINSULA MARINA
                                  650 BAIR ISLAND BOULEVARD, REDWOOD CITY, CA.

                               Page 7 of 7
<PAGE>

                          PENINSULA MARINA & OFFICE PARK
                               RULES & REGULATIONS
                                    EXHIBIT B

1.    The plumbing facilities shall not be used for any purpose other than
that which they are constructed, and no foreign substance of any kind shall
be thrown therein, and the expense of any breakage, stoppage, or damage
resulting from a violation of this provision shall be borne by the Tenant,
who shall, or whose employees, agents and invitees shall have caused it.

2.    Tenant shall not mark, nail, drill, or otherwise deface walls, ceilings,
partitions, floors, doors, wood, paint, stone or metal work of the building,
except that Lessee may, nail walls for hanging book shelves, pictures, and
advertising provided all holes and any related damages are repaired at the
close of tenancy.

3.    Tenant shall not use, keep or permit to be used, or kept, any foul or
noxious gas or substance in the Premises or permit or suffer the Premises to
be used or occupied in any manner offensive or objectionable to Landlord or
other occupants of the Building by reason of any noise, odors, and/or
vibrations.

4.    Tenant, or its agents, shall not play any musical instruments or make
or permit any improper noises in the Building.

5.    Tenant, or its employees, shall not loiter in the entrance or corridor
of the Building, or in any way obstruct the sidewalks, hallways, stairways,
and elevators, and shall use the same only as a means of access to and from the
Premises.

6.    Tenant shall not load the floor area with more than twenty five (25)
pounds per square foot deadweight, and the weight, size and position of all
safes and other heavy equipment shall be subject to location designated by
Landlord, except for common office furniture and library providing the weight
limit is not exceeded.

7.    All furniture, equipment, and freight shall be moved in and out of
building only at hours designated by Lessor according to regulations posted
in the Building. Lessor will not be responsible for loss or damage to any
furniture, equipment, or other personal property of Tenant from any cause,
except for water damage and damage caused by an act of Landlord or it's
agents.

8.    All keys for the Premises shall be provided to Tenant by Landlord and
Tenant shall return to Lessor any of such keys so provided upon the
termination of the Lease. Tenant shall not change locks or install other
locks on doors of the Premises, without consent of Landlord, which shall not
be unreasonably withheld.

9.    No person shall enter or remain in the building while intoxicated or
under the influence of liquor or drugs. Landlord shall have the right to
exclude or expel from the Building any person who, in the absolute discretion
of Landlord, is under the influence of liquor or drugs, except for an
occasional use of alcohol in connection with promotional functions.

<PAGE>

Page 2
                         PENINSULA MARINA & OFFICE PARK
                               RULES & REGULATIONS
                                    EXHIBIT B

10.   No sale, storage, use or giving away of alcoholic beverages on or from
the Premises by Tenant or agent of the Tenant is allowed unless duly
stipulated in the Lease Agreement.

11.   Landlord reserves the right to lock all entrances to the Building
during such hours as Landlord, in its sole discretion, may determine to be
necessary for the adequate protection of the building. Access to the Building
during such times as the entrances are locked shall be subject to the
permission of the Landlord and in accordance with additional rules and
regulations prescribed at such times. In the event a building entrance is
locked, Tenant shall be provided with a key to assure access to the Premises
at all times.

12.   There shall be no overnight parking by Tenant, Tenant's employees or
Tenant's invitees in any of the parking lot at the Peninsula Marina Office
Building, unless Tenant requests a parking permit from the Building
Management Office.

13.   Tenant shall not install any form of window covering or ventilators or
similar devices visible from the outside of the building without the prior
written consent of Landlord. All window coverings shall be provided at the
sole cost of the Landlord.

14.   Tenant shall not keep or permit to be kept in the building any
flammable or combustible material.

15.   Tenant shall not keep or permit to be kept in the building, any cash
money unless it is kept in a locked fire safe which is secured each night.

16.   Tenant shall upon completion of work, turn off all lights and other
machinery in the Premises to prevent waste and damage.

17.   No vending machines or machines of any description may be installed,
operated or maintained on the Premises without the written consent of
Landlord, which shall not be unreasonably withheld.

18.   Tenant shall use care when food is stored and/or consumed on the
Premises to help prevent attracting ants, roaches, and other insects.

19.   Tenant shall not keep or permit to be kept in the building any animals
or fowls.

20.   Tenant shall not attach or affix any antenna or dish of any kind or any
other special devise to the building without the express written consent of
the Landlord.

21.   Landlord reserves the right, in its sole discretion, to revise and or
amend the current rules for the common good of all Tenants and or complex in
general.

22.   There is no smoking allowed within the buildings. Smoking is allowed on
open patios and along the exterior walkways. Ashtrays are placed on each
building for your convenience.

<PAGE>

                                                                   EXHIBIT 10.18

                                                     March 16, 1998

                        TECHNICAL INFORMATION AGREEMENT

                                  Revision 11

                            Northern Telecom Limited

                                    interWAVE

<PAGE>

                                     INDEX
<TABLE>
<CAPTION>

ARTICLE                             TITLE                       PAGE
-------                             -----                       ----
<S>        <C>                                                  <C>
  1        DEFINITIONS                                             2
  2        TECHNICAL INFORMATION GRANT                             3
  3        PATENT GRANT                                            4
  4        SOFTWARE GRANT                                          4
  5        FURNISHING OF TECHNICAL INFORMATION                     6
  6        TECHNICAL ASSISTANCE AND TESTING SERVICES               6
  7        OTHER ASSISTANCE                                        9
  8        CONFIDENTIAL INFORMATION                               10
  9        GRANT BACK LICENSE                                     12
 10        DEVELOPMENT AGREEMENT                                  12
 11        LIABILITY                                              15
 12        FORCE MAJEURE                                          16
 13        REGISTRATION                                           17
 14        DURATION                                               17
 15        TERMINATION                                            17
 16        DISPUTE RESOLUTION                                     18
 17        NOTICES                                                19
 18        ASSIGNMENT                                             19
 19        GENERAL                                                21

SCHEDULE A - SUPPORT INFORMATION                                  24
SCHEDULE B - NORTEL LAB COSTS                                     27

SCHEDULE C - TEST BED SPECIFICATIONS                              28
SCHEDULE D - PARTIAL TERMINATION REFUND                           29

</TABLE>

<PAGE>

                     TECHNICAL INFORMATION AGREEMENT

MEMORANDUM OF AGREEMENT made and entered into on the _______ day of
_____________, 1998

    BY AND BETWEEN:

         NORTHERN TELECOM LIMITED, a corporation duly incorporated under the
         laws of Canada, having its executive offices at 8200 Dixie Road,
         Brampton, Ontario, Canada, on behalf of itself and its Subsidiaries,

                                                   (hereinafter called "NORTEL")

    AND:

         INTERWAVE COMMUNICATIONS INTERNATIONAL, LTD., a Bermuda corporation
         having its offices at c/o Codan Services Ltd. Clarendon House, Church
         Street, Hamilton, HM CX, Bermuda,

                                                (hereinafter called "INTERWAVE")

    WHEREAS Nortel manufactures and markets, globally, certain mobile and
fixed wireless telecommunications systems;

    WHEREAS interWAVE has developed a low-capacity microcellular system
("MICROCELLULAR PUBLIC RADIO SYSTEM") which is based on the Global System for
Mobility standards and which utilizes microcellular infrastructure products
("MICROCELLULAR INFRASTRUCTURE PRODUCTS");

    WHEREAS Nortel desires to be interWAVE's preferred channel to market for
the Microcellular Public Radio System on a global basis and is prepared to
participate, financially and otherwise, in its evolution;

    WHEREAS interWAVE recognizes the benefits of being associated with a
global company of Nortel's stature and is prepared to accept Nortel's funding
and participation in the evolution of the Microcellular Public Radio System;

    WHEREAS both Parties anticipate that they may wish to collaborate in the
development of future products and

    WHEREAS interWAVE has provided economic consideration via the Shareholder
Agreement in the amount of US$3.5 million.

    NOW, THEREFORE, THIS AGREEMENT WITNESSETH THAT, IN CONSIDERATION OF THE
SHAREHOLDER AGREEMENT AND THE ORIGINAL EQUIPMENT MANUFACTURING (OEM)
AGREEMENT EXECUTED CONCURRENTLY HEREWITH AND THE MUTUAL PROMISES HEREINAFTER
SET FORTH, THE PARTIES AGREE AS FOLLOWS:

                                                                    Page 1 of 29

<PAGE>

                                   ARTICLE I

                                  DEFINITIONS

1.1.  As used herein, unless otherwise defined:

a)    "AFFILIATE" shall mean a corporation or company which a Party hereto
      effectively controls, directly or indirectly, other than a Subsidiary,
      through the ownership or control of shares in the corporation or
      company; in the case of Nortel, "Affiliate" shall include the parent
      company Northern Telecom Limited, and Northern Telecom Inc., and any
      corporation which the parent corporation controls directly or indirectly
      through the ownership or control of shares or securities in such other
      corporation or otherwise;

b)    "EFFECTIVE DATE" shall mean the date of any governmental approvals
      required to carry out this Agreement or in the event no such approvals
      are necessary, the date first set forth above;

c)    "INTERWAVE PRODUCTS" shall mean the Microcellular Infrastructure
      Products as manufactured by or on behalf of interWAVE that complies
      with the Global System for Mobility standards;

d)    "MICROCELLULAR INFRASTRUCTURE PRODUCTS" shall have the meaning ascribed
      to it in the Patent License Agreement among Northern Telecom Limited,
      Nortel Matra Cellular SCA, and interWAVE, executed concurrently with
      the execution of this Agreement.

e)    "MICROCELLULAR PUBLIC RADIO SYSTEM" shall have the meaning ascribed to
      it in the Patent License Agreement among Northern Telecom Limited,
      Nortel Matra Cellular SCA, and interWAVE, executed concurrently with
      the execution of this Agreement.

f)    "OEM AGREEMENT" shall mean the ORIGINAL EQUIPMENT MANUFACTURING (OEM)
      AGREEMENT executed concurrently herewith; "PATENT LICENSE" shall mean
      the PATENT LICENSE AGREEMENT executed concurrently herewith;

g)    "PRODUCT SOFTWARE" shall mean the compiled, assembled or otherwise
      processed version of Support Software that constitutes, in whole or in
      part, the software that executes in, and controls the normal
      functionality of, interWAVE Products;

h)    "SUPPORT INFORMATION" or "TECHNICAL INFORMATION" shall mean that
      information related to the functionality, performance, testing and
      interfaces of Nortel's products with which the Microcellular
      Infrastructure Products must be capable of interworking, and similar
      information related to other Nortel Products, all as set forth in
      Schedule "A" attached hereto and forming a part hereof, as from time to
      time amended by the Parties, to the extent available in accordance with
      Article 5 ("Furnishing of Technical Information") hereof;

i)    "SUPPORT SOFTWARE" shall mean the software, if any, contained in the
      Support Information; and

j)    "SUBSIDIARY" shall mean a corporation or company in which a Party
      hereto effectively owns or controls, and continues to own or control,
      directly or indirectly, more than fifty percent (50%) of the voting
      stock or shares.

                                 Page 2 of 29
<PAGE>

                                   ARTICLE 2
                          TECHNICAL INFORMATION GRANT

2.1   SUPPORT INFORMATION: Nortel, to the extent of its legal right so to do,
      hereby grants to interWAVE, as of the Effective Date, subject to the
      terms and conditions of this Agreement, personal, non-transferable,
      non-assignable except under the terms set forth in Article 18.1,
      indivisible, non-exclusive rights:

      (a)   to use and modify Support Information supplied hereunder solely
            to develop, manufacture and test interWAVE Products; and

      (b)   to sell interWAVE Products based on or incorporating Support
            Information to its customers worldwide.

2.2   PROCUREMENT SPECIFICATIONS: The aforesaid rights shall include:

      (a)   the right to communicate relevant procurement specifications
            related to Support Information to suppliers in all countries of
            the world reasonably necessary for, and solely for, the
            procurement by interWAVE of commercially available materials,
            parts, components and assemblies for use in the manufacture
            and/or installation of interWAVE Products; and

      (b)   the right to communicate to customers purchasing or leasing
            interWAVE Products such portions of Support Information as are
            reasonably needed by such customers for operating and maintaining
            interWAVE Products;

      provided, however, the recipients of Support Information shall be
      advised by interWAVE, in writing at the time of or before such
      communication, that proprietary information is being communicated and
      that such information is to be kept confidential and not used except as
      permitted hereunder, and provided further, that such recipients have
      contractually agreed, in writing, prior to such disclosure, to respect
      such confidentiality obligations.

                                   ARTICLE 3

[INTENTIONALLY BLANK]

                                   ARTICLE 4
                                SOFTWARE GRANT

4.1   INTEGRATION: Notwithstanding Article 2 ("Technical Information Grant")
      hereof, in the event Support Information includes Support Software,
      interWAVE's rights in respect of Support Software shall be as set out
      below in this Article 4 ("Software Grant").

4.2   GRANT: Nortel, to the extent of its legal right so to do, hereby grants
      to interWAVE, as of the Effective Date, subject to the terms and
      conditions of this Agreement, personal, non-transferable,
      non-assignable, indivisible, non-exclusive rights:

4.3   (a)   to modify and use Support Software to develop and produce Product
            Software for use solely in interWAVE Products; and

                                  Page 3 of 29
<PAGE>

      (b)   to sublicense the Product Software solely for the purpose of
            operating and maintaining interWAVE Products used, leased or sold by
            interWAVE pursuant to this Agreement.

4.3.  LIMITED LICENSE RIGHTS: Nothing contained herein shall transfer, or be
      deemed to transfer, or contemplate the transfer of, any rights in or to
      Support Software other than those rights specifically granted herein and,
      in particular but without restricting the generality of the foregoing,
      Nortel does not in any way transfer any right, title or interest in or to
      Support Software, or derivatives thereof or any element constituting a
      portion thereof, to interWAVE or its sublicensees, other than the limited
      rights granted herein.

4.4.  FIRMWARE MARKING: In respect of Product Software residing in
      non-reprogrammable memory devices forming an integral part of interWAVE
      Products (commonly referred to as "firmware"), interWAVE shall, having
      regard to the laws of the country(ies) in which such interWAVE Product is
      intended to be sold, affix to such devices a copyright notice and/or such
      other notice in accordance with prudent procedure to assist in the
      prohibition of the reproduction, decompilation or the like of, and to
      ensure the continuation of Nortel's proprietary rights in, the Support
      Software.

4.5.  NON-FIRMWARE SUBLICENSING: In respect of Product Software that resides
      other than in non-reprogrammable memory devices forming an integral part
      of the interWAVE Product (commonly referred to as "firmware"), interWAVE's
      right to furnish Product Software to its sublicensees shall be subject to
      the prior or concurrent entering into of an enforceable sublicense
      agreement between interWAVE and each sublicensee containing the following
      provisions:

      (a)   sublicensee shall acquire no right, title or interest in or to
            Product Software other than the right to use Product Software for
            the operation and maintenance of interWAVE Products and such use
            shall be limited to specific individual central processing units
            bearing a specific serial number and having a specific location;

      (b)   sublicensee shall hold Product Software in confidence for Nortel and
            interWAVE and shall not, at any time, without the prior written
            consent of Nortel and interWAVE, use or reproduce Product Software
            except as expressly permitted hereunder or divulge Product Software
            to any person other than employees of sublicensee with a need to
            know; and

      (c)   the right to use Product Software shall be in accordance with the
            laws applicable in the country in which the relevant instance of
            interWAVE Product is sold but so as not to affect, but to preserve,
            the proprietary and confidential nature of Product Software and any
            patent, copyright, or other rights of Nortel, its Subsidiaries and
            Affiliates applicable to Support Software.

4.6.  SUBLICENSE ENFORCEMENT: interWAVE shall negotiate, execute, administer and
      monitor each of Product Software sublicense agreements to ensure
      compliance with all of the relevant provisions of this Agreement. In the
      event a Sublicensee is in default under its sublicense agreement,
      interWAVE shall so advise Nortel in writing, promptly, and exercise as
      soon as reasonably possible such rights and recourses as it may have in
      the circumstances with particular emphasis on preserving the proprietary
      and confidential nature of Support Software and any patent, copyright or
      other rights of Nortel, its Subsidiaries or Affiliates, applicable to
      Support Software.

                                                                   Page 4 of 29
<PAGE>

4.7.  USE BY INTERWAVE: In the event interWAVE uses interWAVE Products for its
      own purposes other than for matters associated with the exercise of this
      Agreement (such matters including, by way of example, captive offices for
      developing, testing and demonstrating interWAVE Products, or training, as
      contemplated herein) interWAVE's use of the related Product Software shall
      be subject to the provisions hereunder applicable to its sublicensees
      therefor.

4.8.  THIRD PARTY SOFTWARE: In the event use of Support Software or Product
      Software derived therefrom requires the presence or associated execution
      of software proprietary to a third party, interWAVE, solely, shall be
      responsible for acquiring the necessary rights to such third party
      software and shall bear all the costs associated therewith.

4.9.  COPYRIGHT NOTICES, USE BY GOVERNMENT: interWAVE shall not remove or
      destroy any copyright or restricted rights notices affixed by Nortel to
      any original media containing Support Software or Documentation. All
      interWAVE Products incorporating Product Software or portions thereof
      distributed to the U.S. Government shall contain required "Restricted
      Rights" notices substantially as follows: "Use, duplication or disclosure
      by the U.S. government is subject to restrictions as set forth in DFARS
      252.227-7013(c)(i)-(ii); FAR 52.227-19; and FAR 52.227-14, Alternate III,
      as applicable (including any subsequent clauses) or any other applicable
      Federal government regulations." Any copies of Product Software or
      Documentation distributed by interWAVE shall either be labeled in the same
      manner as on the original media or in a manner substantially similar to
      the following:

            -C-   Copyright "YEAR" interWAVE and its licensors.
                  All Rights Reserved.

                                    ARTICLE 5

                       FURNISHING OF TECHNICAL INFORMATION

5.1.  SUPPORT INFORMATION: Nortel shall, to the extent of its legal right so to
      do, furnish to interWAVE Support Information, in the form then being
      used in Nortel's facilities at Richardson, Texas; Guyancourt, France; and
      Ottawa, Canada in its day to day operations. An initial listing of said
      Support Information is attached hereto as Schedule A. Further Support
      Information provided by Nortel shall be treated as such provided the
      parties execute by written amendment a revised Schedule A; in the absence
      of such written amendment, such information shall be treated as
      Confidential Information.  Except with respect to the information in
      Schedule A, Nortel shall not be obligated to develop or produce any new
      or unavailable Support Information to perform its obligations under this
      Agreement.

5.2.  TIMETABLE: Nortel shall commence the supply of Support Information as soon
      as reasonably possible following execution hereof.

5.3.  DELIVERY: Technical Information shall be deemed delivered upon delivery to
      interWAVE, care of the common carrier designated by interWAVE, at Nortel's
      facility from which such information is furnished.

5.4.  NORTEL NETWORK ACCESS: interWAVE acknowledges that it shall not acquire
      under this Agreement any rights to access systems, databases, applications
      or services resident or based on, or constituting a portion of, the
      various mainframe computer systems and local area and wide-area network
      facilities (including, without limitation, workstations

                                                                   Page 5 of 29

<PAGE>

          and personal computers connected thereto) operated by Nortel and
          its Subsidiaries or Affiliates. In the event the Parties jointly
          determine that such access is appropriate, they shall enter into a
          separate written agreement in respect thereof.

                                   ARTICLE 6

                    TECHNICAL ASSISTANCE AND TESTING SERVICES

6.1.      PRODUCTS TO BE TESTED, TESTING FACILITIES: interWAVE shall delvier
          to Nortel interWAVE Products, specified in a written product
          schedule, along with interWAVE-developed testing, interconnecting,
          or other equipment or items deemed necessary by Nortel and
          interWAVE ("Ancillary Equipment") to enable Nortel and interWAVE
          to perform Testing Services hereunder. interWAVE shall deliver the
          interWAVE Products and Ancillary Equipment to Nortel and Nortel
          shall use its best efforts to schedule the tests of the interWAVE
          Products in accordance with dates set forth in a written timetable
          schedule, provided (a) said product schedule and said timetable
          schedules are provided not less than ninety (90) days in advance of
          the times set forth for Testing; and (b) time is not of the essence
          with respect to the performance of Testing by Nortel. Notwithstanding
          interWAVE's failure to provide said ninety (90) days notice, Nortel
          will make good-faith efforts to perform Testing Services in
          accordance with the written schedules proposed. To facilitate
          Nortel's efforts to make its testing facilities available, interWAVE
          shall provide, on a quarterly basis, a written schedule showing new
          product release dates and projected testing facility needs for the
          following twelve months.

6.2       TECHNICAL REPRESENTATIVES: interWAVE and Nortel shall each supply
          to the other the name of a technical representative through whom
          all communications relating to the Testing shall be made
          (respectively "interWAVE's Technical Representative" and "Nortel's
          Technical Representative"). interWAVE's Technical Representative
          shall provide such assistance as Nortel may require in order to set
          up and adjust the interWAVE Products and Ancillary Equipment to
          enable Testing of the interWAVE Products to determine its
          inter-operability with Nortel's GSM Products. interWAVE's Technical
          Representative shall be informed of the time, location and identity
          of the Testing and shall attend the Testing and witness all aspect
          thereof. In the event interWAVE's Technical Representative or
          another interWAVE employee designated by interWAVE is unavailable
          or otherwise fails to attend, Nortel shall at its option either
          perform, postpone or cancel the Testing.

6.3       INFORMATION TO BE PROVIDED BY INTERWAVE: interWAVE shall supply to
          Nortel technical and operating descriptions of the interWAVE
          Products as may be required by Nortel to facilitate the performance
          of Testing Services, including, without limitation the following (to
          be hereinafter referred to as "interWAVE SUPPORT INFORMATION"):

          (a)       a general description of the interWAVE Products including
                    its interaction with the telephone network;

          (b)       full details of all physical interconnections required by
                    the interWAVE Products in all modes of operation;

          (c)       full details of the methods required to allow Nortel to
                    provide normal and appropriate input signals to the
                    interWAVE Products during the Testing;

<PAGE>

          (d)       a completed questionnaire, said questionnaire supplied by
                    Nortel at least two (2) weeks prior to the date the
                    Testing is scheduled to begin;

          (e)       any information derived by interWAVE from prior
                    certification tests involving the interWAVE Products or
                    from the operation of the interWAVE Products which would
                    relate to the Testing of the interWAVE Products; and

          (f)       interWAVE system test scripts and interWAVE test
                    specifications.

6.4.      TESTING SERVICES: The Testing Services shall consist of "Initial
          Testing" and "Retesting". Nortel shall provide Testing Services
          (i.e., Initial Testing followed by Retesting) at a frequency of
          three (3) times per year. The duration of said Testing Services
          shall be not more than two weeks of Initial Testing and not more
          than one week of Retesting. As well, Nortel shall schedule an
          additional two (2) weeks of Initial Testing for the first Initial
          Testing period and an additional one (1) week of Initial Testing
          for the second Initial Testing period, and Nortel shall use
          reasonable efforts to accommodate interWAVE's schedule in connection
          therewith.

6.5.      INITIAL TESTING: The "INITIAL TESTING" shall consist of a test
          suite as Nortel and interWAVE jointly determine and specify in
          writing to be appropriate with respect to interWAVE Products. The
          Testing Services will be based upon the Support Information
          specified in Schedule A and the interWAVE Support Information. The
          Initial Testing shall determine the compliance of the interWAVE
          Products with the Specifications in Schedule A and the interWAVE
          Support Information. The Initial Testing will not determine the
          causes of any noncompliance with said Specifications and interWAVE
          Support Information.

6.6.      RETESTING: Upon receipt of a written request from interWAVE, and in
          accordance with a retesting schedule as shall be mutually agreed
          upon by the parties, Nortel shall provide interWAVE a subset of the
          above-referenced Initial Testing for the purpose of retesting
          ("RETESTING") any interWAVE Products which has been modified by
          interWAVE in order to correct issues which may have been discovered
          during Initial Testing; PROVIDED, however, that such access shall
          be provided to interWAVE only one time per Testing Services cycle,
          for a period not to exceed one week of time.

6.7.      ADDITIONAL TESTING: For Testing Services in excess of the stated
          frequency or duration of the Initial Testing and Retesting, Nortel
          may, at its option, following written notification to interWAVE,
          invoice interWAVE at Nortel's then-existing fully loaded costs (a
          schedule of Nortel's current fully loaded costs for Lab Services,
          which may be changed by Nortel from time to time in its sole
          discretion, is attached hereto as Schedule B). Nortel shall invoice
          interWAVE for such fees plus any taxes or like fees or charges
          which may be assessed against, or otherwise payable by, Nortel for
          Nortel's performance, except for any such tax, fee, or charge on
          Nortel's net income. interWAVE shall pay Nortel such fees within
          thirty (30) days of receipt of such invoice.

6.8.      COMMUNICATION AND DISCLOSURE OF RESULTS: Nortel shall promptly
          communicate the results of all Testing Services and any "Retesting"
          performed hereunder to interWAVE. interWAVE shall be entitled to
          disclose such results and the non-proprietary test methods,
          provided that interWAVE shall not include any reference to Nortel
          or include any information that would identify Nortel without
          Nortel's written consent. Nortel may, with interWAVE's written
          permission, provide such results to Nortel's customers, subject to
          such restrictions as the Parties deem to be appropriate regarding
          further disclosure by such customers of the results.

<PAGE>

6.9.  OTHER FACILITIES:  Nortel shall make available to interWAVE two
      cubicles of office space for use by interWAVE personnel, furnished with
      basic office furniture; provided that interWAVE shall provide any
      necessary computing equipment and test equipment it should choose to
      maintain at said office.

                                    ARTICLE 7

                               OTHER ASSISTANCE

7.1.  MOBILE SWITCHING CENTER: The Parties acknowledge that the testing of
      the interWAVE Products and Developed Products may require access to the
      Nortel Mobile Switching Center ("MSC") to facilitate base station
      subsystem ("BSS") testing. interWAVE shall be accorded three (3) days
      use of the Nortel MSC per calendar quarter, usages in excess of this
      amount to be provided at Nortel's then-existing fully loaded cost (see
      Schedule B for Nortel's current "MSC Access Cost"). When interWAVE
      requires access to the Nortel MSC, it shall advise Nortel at the earliest
      opportunity (providing not less than thirty (30) days notice) and Nortel
      shall use reasonable endeavors to make such facilities available at the
      requested times. Notwithstanding interWAVE's failure to provide said
      thirty (30) days notice, Nortel will make good-faith efforts to provide
      access at the requested times.

7.2.  GSM COMPONENT PURCHASES: To the extent of its legal right to do so,
      Nortel will use reasonable efforts to make available, through its
      existing GSM Component suppliers, the prices, terms and conditions
      associated with the provision of GSM Components for products of the
      type covered by the ORIGINAL EQUIPMENT MANUFACTURING (OEM) AGREEMENT
      executed concurrently herewith. interWAVE shall communicate to Nortel
      on a quarterly basis its projected 12-month forecast of requirements
      for such GSM Components so that these requirements can be
      incorporated by Nortel into its purchasing negotiations with its GSM
      Component suppliers. In the case where Nortel can obtain lower costs
      from an alternate GSM Component supplier for one or more GSM
      Components, interWAVE shall consider using said GSM Component
      supplier for the supply of said GSM Components.

7.3.  TEST BED: interWAVE shall develop a test bed at Redwood City,
      California to facilitate Nortel's testing of the hardware and
      software necessary to support the ORIGINAL EQUIPMENT MANUFACTURING
      (OEM) AGREEMENT and to facilitate such other purposes to which the
      parties have mutually agreed. The Test Bed shall meet the
      specifications attached hereto in Schedule C. interWAVE shall invoice
      Nortel for a fixed amount of $320,370.00U.S. according to the terms of
      Section 9.1.1 ("Price and Payment") of Schedule 1 of the ORIGINAL
      EQUIPMENT MANUFACTURING (OEM) AGREEMENT for the creation and ongoing
      maintenance of the Test Bed.

7.4.  ACCESS: The parties agree that, when Nortel is not utilizing the Test
      Bed, it may be utilized by interWAVE; therefore, access to and use of
      the Test Bed shall be governed by written schedule, said schedule to be
      maintained by interWAVE so as to avoid conflicting needs therefor, said
      schedule further maintained so as to give Nortel absolute priority of
      use on three (3) days notice and preferential priority of use on one
      (1) days notice.

                                  ARTICLE 8

                                                                  Page 8 of 29
<PAGE>

                           CONFIDENTIAL INFORMATION

8.1.  CONFIDENTIAL INFORMATION: Each of the parties recognizes and agrees
      that the unauthorized use or disclosure of the other party's
      confidential or proprietary information relating to such party's
      business, plans, technology, and products ("Confidential Information")
      would cause irreparable injury to the disclosing party for which it
      would have no adequate remedy at law, and that an actual or threatened
      breach of this section shall entitle the disclosing party to obtain
      immediate injunctive relief prohibiting such breach, in addition to any
      other rights and remedies available to it.  If Confidential Information
      is disclosed orally, the disclosing party shall notify the receiving
      party of the confidential nature of the Confidential Information at the
      time of disclosure and such Confidential Information shall be reduced
      to writing, marked as confidential and delivered to the receiving party
      within thirty (30) days after oral disclosure.

8.2.  TECHNICAL INFORMATION CONSTITUTES CONFIDENTIAL INFORMATION:  interWAVE
      acknowledges that Technical Information furnished by Nortel pursuant
      hereto, or information communicated to or acquired by interWAVE as a
      consequence of the provision of technical assistance pursuant hereto,
      is Confidential Information as defined above and is and shall continue
      to be the exclusive property of Nortel.  interWAVE shall hold
      Confidential Information in confidence for Nortel and only make use of,
      or disclose, it as permitted by this Agreement.

8.3.  PROTECTION OF CONFIDENTIAL INFORMATION: For the period during and for
      three (3) years following the last day of the term all Confidential
      Information shall be subject to the following:

      (a)    The recipient shall restrict disclosure of the Confidential
             Information to only those of recipient's employees and
             contractors who (1) have a legal or contractual obligation to
             maintain the information in confidence according to this
             Article; and to those who (2) have a "need to know" (i.e.
             employees and contractors that require the Confidential
             Information to perform their responsibilities in connection with
             this Agreement).  The recipient shall not disclose Confidential
             Information to any other person or entity without the prior
             written consent of the disclosing party;

     (b)     The recipient shall use the Confidential Information only for
             the purposes of performing under this Agreement;

     (c)     The recipient shall advise those employees or contractors who
             access the Confidential Information of their obligations with
             respect thereto;

     (d)     The recipient shall copy the Confidential Information only as
             necessary for those employees or contractors who are entitled
             to receive it and ensure that all confidentiality notices are
             reproduced in full on such copies; and

     (e)     The recipient shall return all copies of such Confidential
             Information to the disclosing party at the disclosing party's
             request.

     (f)     If any Confidential Information is required to be disclosed in
             response to a valid order of the court or lawful request of a
             government agency, the recipient shall first notify the
             disclosing party of the order or request and permit the
             disclosing party to seek an appropriate protective order.

                                                                  Page 9 of 29

<PAGE>

       (g)   interWAVE shall not make or have made or permit to be made any
             copies or translations of Confidential Information, except those
             copies or translations which are necessary to the use hereunder by
             interWAVE, and all such copies or translations shall, upon
             reproduction by interWAVE, contain the same proprietary and
             confidentiality notices or legends as appear on Confidential
             Information.

8.1.   EXCLUSIONS: The confidentiality obligations set forth in this Section 8
       will not apply to any Confidential Information that:

       (a)   becomes known to the general public without fault or breach on the
             part of the receiving party;

       (b)   the receiving party obtains from a third party without breach of a
             nondisclosure obligation and without restriction on disclosure;

       (c)   is furnished to a third party by the disclosing party without a
             similar restriction on such third party's rights;

       (d)   can by written records be shown to have been known by the receiving
             party at the time of disclosure; or

       (e)   the receiving party can demonstrate to the reasonable satisfaction
             of the disclosing party was developed independently by employees or
             contractors of the receiving party who had no access to
             Confidential Information directly related to such independent
             development.

8.1.   NONDISCLOSURE OF TERMS: Neither party shall publicly disclose any
       information regarding the terms and conditions contained herein without
       having received prior approval, in writing, from the other party.

                                   ARTICLE 9

                              GRANT BACK LICENSE

9.1.   IMPROVEMENTS: If interWAVE makes any improvements, developments,
       inventions, changes or innovations directly related to the Technical
       Information (hereinafter called "Improvements"), and interWAVE files for
       a patent covering such Improvements, then:

       (a) if interWAVE files for and obtains, or otherwise acquires, any patent
           thereon in any country, interWAVE shall grant to Nortel a personal,
           non-exclusive, non-transferable, Sublicensable (as defined below),
           royalty-free full term license to make, have made, use, lease and
           sell products and software under any such patents, to the extent
           such patents directly relate to Improvements; or

       (b) if interWAVE intends to file such patent application(s) only in
           certain countries, interWAVE shall, within such time as will enable
           Nortel conveniently to make timely patent applications in such
           countries, provide Nortel, at its request, with all signature and
           documents necessary for filling applications for an obtaining such
           patent or patents in such countries wherein interWAVE does not
           intend, but in which Nortel may elect, to apply for patents covering
           any such patentable subject matter, provided Nortel shall file such
           patent applications at its own expense (but with such assistance as
           interWAVE may properly give) and interWAVE shall be

                                 Page 10 of 29
<PAGE>

           granted, a non-exclusive, free, unrestricted full term license (with
           the right to grant sublicenses) for such patents.

9.2.   For the purposes of section 9.1, "Sublicensable" shall mean sublicensable
       to:

       (a)   any joint venture, partnership, corporation or other entity in
             which Nortel owns or controls, directly or indirectly, twenty (20%)
             percent or more of the shares or other mechanism of control or
             influence by way of contractual or other legally enforceable
             rights; and/or

       (b)   any entity that acquires, directly or indirectly, any Nortel
             business or portion thereof whose products are covered by such
             patent.

                                   ARTICLE 10

                             DEVELOPMENT AGREEMENT

10.1.  DEVELOPMENT INFORMATION: From time to time the Parties may agree that
       interWAVE, Nortel, or the Parties jointly, shall undertake the
       development of products utilizing information of a design or other
       technical nature other than Support Information made available to
       interWAVE by Nortel (hereinafter termed "Development Information"). The
       Parties acknowledge that the following items will receive priority
       consideration as projects to be undertaken under the Development
       Agreement:

       (a)   Cost effective MAP interface for rural systems using low cost
             transmission and signalling;

       (b)   Integration of interWAVE OMC with Nortel OMC;

       (c)   Integration of interWAVE system with Nortel M1 PBX including
             delivery of features to GSM users; and

       (d)   Interface interWAVE MSC with Nortel IWF.

10.2.  DEVELOPMENT AGREEMENT: With respect to such development, the Parties
       agree as follows:

       (a)   TIMELY EXECUTED DEVELOPMENT AGREEMENT: Joint development of
             products utilizing Development Information shall take place only
             pursuant to a written Development Agreement between the Parties,
             SAID DEVELOPMENT AGREEMENT TO BE NEGOTIATED AND EXECUTED BY THE
             PARTIES NOT LATER THAN THE FIRST BUSINESS DAY FOLLOWING THE
             SIXTIETH (60) DAY AFTER THE EFFECTIVE DATE OF THIS AGREEMENT;

       (b)   PROJECT ADDENDA: The Development Agreement shall anticipate the
             performance of development activity on a project-by-project basis,
             with the details associated with a particular Project contained
             within one or more Project Addenda attached thereto;

       (c)   CONTENTS OF PROJECT ADDENDA: The Project Addenda shall specifically
             contain (1) a Project Title; (2) a Project Summary; (3) a Work Plan
             containing a Description and Specification of Deliverables, the
             Acceptance Criteria therefor;

                                 Page 11 or 29
<PAGE>

             the Delivery Dates for said Deliverables; (4) Descriptions of
             any required Reports; (5) Pricing / Payment Terms; (6) Termination
             conditions; and (7) Project Management contacts. The Project
             Addenda may or may not contain provisions with respect to
             Intellectual Property issues; however, if the Project Addenda
             does contain Intellectual Property provisions, and these
             provisions cannot be interpreted consistently with the
             Development Agreement, then the Intellectual Property
             provisions of the Project Addenda shall control.

       (d)   CONTENTS OF DEVELOPMENT AGREEMENT: The Development Agreement
             shall specifically contain (1) Definitions of important terms;
             (2) provisions governing the Working Relationship (e.g.,
             Provision of Deliverables, Delivery Dates, Acceptance Tests,
             Change Requests, Notices and Contacts); (3) provisions governing
             the handling of Confidential Information; (4) provisions
             governing the Intellectual Property rights of the Parties in
             the event any Project Addenda are silent upon the subject of
             Intellectual Property; (5) provisions governing the provision
             of necessary technical support and training; (6) appropriate
             representations, warranties, limitations of liability and duties
             to indemnify; and (7) conditions upon which the Development
             Agreement will terminate; PROVIDED, however, that the provisions
             of said Development Agreement with respect to, INTER ALIA,
             intellectual property rights may always be modified by the
             Parties on a project-by-project basis in the project-based
             Addenda attached thereto.

10.3.  IPR IN THE ABSENCE OF A TIMELY EXECUTED DEVELOPMENT AGREEMENT: In the
       event the Parties have not negotiated and executed the Development
       Agreement by the said first business day following the sixtieth (60th)
       day after the Effective Date of this Agreement, the ownership of the
       intellectual property rights arising from such development shall be as
       follows:

       (a)   if one Party contributes all material monetary funding and
             material human resources for any development activity, such Party
             shall, subject to the provisions of section 9.1 hereof, own all
             right, title and interest in and to any intellectual property
             rights arising from such development.

       (b)   if each Party has contributed material monetary funding or
             material human resources for any development activity, all
             intellectual property rights arising from such development, save
             for patents, shall be jointly owned with each Party having the
             right to exploit such intellectual property, including sublicensing
             thereof, at its sole discretion without reference to the other
             Party; in the event of a patentable invention, the Parties shall
             agree as to which of the Parties is to take ownership of any
             patents which may issue (disputes to be resolved according to the
             provisions of Article 16 ("Dispute Resolution")). The Party taking
             ownership may file applications for such patents file such patents,
             subject to the following:

             i.   where the Party having ownership of the patents elects to
                  file for any patent thereon in any country, that Party shall
                  grant to the other Party a non-exclusive, free, unrestricted,
                  full term license (with the right to grant sub-licenses
                  thereunder) to make, have made, use, lease and sell under any
                  such patents; and

             ii.  the Party not having ownership of the Patents may file for
                  patents thereon in countries not filed in by the Party having
                  ownership; in such case, the Party having ownership shall,
                  within such time as will enable

                                                                   Page 12 of 29
<PAGE>

                 the other Party conveniently to make timely patent applications
                 in such countries, provide the other Party, at its request,
                 with all signatures and documents necessary for filing
                 applications for and obtaining such patent or patents in such
                 countries, provided that the other Party shall file such patent
                 applications at its own expense (but with such assistance as
                 the Party having ownership may properly give) and the Party
                 having ownership shall be granted, if it so requests, a
                 non-exclusive, free, unrestricted, full term license (with the
                 right to grant sublicenses) for such patents.

                                      ARTICLE 11
                                      LIABILITY

11.1.  DISCLAIMER REGARDING TECHNICAL INFORMATION AND TECHNICAL ASSISTANCE:
       Nortel makes no representations in respect of Technical Information or
       technical assistance furnished pursuant hereto, but shall furnish such in
       good faith to the best of its knowledge and ability. Without restricting
       the generality of the foregoing, there are no representations, warranties
       or implied conditions as to merchantability or fitness for a particular
       purpose, or as to whether or not the use of Technical Information or
       technical assistance supplied hereunder will infringe any patent or any
       other rights (including intellectual property rights) of any other
       person.

11.2.  INDEMNIFICATION REGARDING TECHNICAL INFORMATION AND TECHNICAL
       ASSISTANCE: Except as set forth in section 11.5, interWAVE shall
       indemnify and hold Nortel harmless from any and all claims for damages,
       losses, expenses or costs (including counsel fees and expenses) arising
       out of the furnishing or receipt of any Technical Information or
       technical assistance pursuant hereto and hereby waives any claims that it
       might have or might pretend to have against Nortel, its employees and
       agents, as well as those of its Subsidiaries and Affiliates for or
       arising from the provision of Technical Information or technical
       assistance.

11.3.  LIABILITY FOR DAMAGE TO INTERWAVE PRODUCTS AND ANCILLARY EQUIPMENT:
       Liability for damage to, or loss of, the interWAVE Products and Ancillary
       Equipment during shipment and while on Nortel's premises, shall remain
       with interWAVE, unless such loss or damage is occasioned by the fault or
       negligence of Nortel, its agents or employees.

11.4.  DISCLAIMER AND INDEMNITY REGARDING TESTING SERVICES. NORTEL MAKES NO
       REPRESENTATIONS WITH RESPECT TO ANY TESTING SERVICES PERFORMED HEREUNDER
       OR ANY INFORMATION (INCLUDING TEST RESULTS) OR ANY TECHNICAL ASSISTANCE,
       ADVICE OR CONSULTATION FURNISHED IN CONNECTION WITH THIS AGREEMENT.
       WITHOUT RESTRICTING THE GENERALITY OF THE FOREGOING, NORTEL MAKES NO
       WARRANTIES, CONDITIONS, OR REPRESENTATIONS, WRITTEN OR ORAL, STATUTORY,
       EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
       MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. EXCEPT FOR BREACH
       OF THE COVENANTS OF ARTICLE 8 ("CONFIDENTIAL INFORMATION"), NEITHER
       NORTEL, NOR ANY DIRECT OR INDIRECT SUBSIDIARY, AFFILIATE, EMPLOYEE OR
       AGENT OF NORTEL SHALL BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR
       CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER FOR ANY BREACH OF THIS
       AGREEMENT, FOR ANY DISCLOSURE OF THE RESULTS OF THE TESTING SERVICES AS
       PERMITTED BY SECTION 6 ("TECHNICAL

                                                                 Page 13 of 29
<PAGE>

        ASSISTANCE AND TESTING SERVICES"), WHETHER ARISING IN CONTRACT, TORT, OR
        OTHERWISE. IN NO EVENT WILL NORTEL'S, OR ITS SUBSIDIARY'S, AFFILIATE'S,
        EMPLOYEE'S OR AGENT'S LIABILITY IN CONNECTION WITH THIS AGREEMENT,
        WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, EXCEED THE COST OF THE
        TESTING SERVICES PROVIDED HEREUNDER. interWAVE SHALL INDEMNIFY AND HOLD
        NORTEL, ITS DIRECT OR INDIRECT SUBSIDIARIES, AFFILIATES, EMPLOYEES AND
        AGENTS, HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS OR SUITS BROUGHT
        BY ANY THIRD PARTIES IN RESPECT OF ANY SUCH TESTING SERVICES,
        DISCLOSURE OF THE RESULTS OF SUCH TESTING SERVICES AS PERMITTED BY
        SECTION 6, INFORMATION, TECHNICAL ASSISTANCE, ADVICE, OR CONSULTATION,
        EXCEPT WHERE SUCH ACTIONS OR SUITS ARE ATTRIBUTABLE TO THE NEGLIGENCE
        OF NORTEL AND ARE FOR DIRECT DAMAGES DUE TO PERSONAL INJURY OR TANGIBLE
        PROPERTY DAMAGE WHICH OCCURS (A) AT NORTEL'S PREMISES WHERE TESTING
        SERVICES TAKES PLACE AND (B) DURING THE PERFORMANCE OF THE TESTING
        SERVICES.

11.5.   Each party (the "Indemnifying Party") shall indemnify and save
        harmless the other party (the "Indemnified Party") from any liability
        or claim (including, without limitation, the costs and reasonable
        attorney's fees in connection therewith) that may be made by a third
        party for injury, including death, to persons or damages to property
        arising directly out of the Indemnifying Party's negligent acts or
        omissions in connection with such Indemnifying Party's performance of
        its obligations or exercise of its rights under this Agreement
        provided that the Indemnified Party has no contributory fault in
        connection with such liability or claim.

                                   ARTICLE 12
                                 FORCE MAJEURE

12.1.   If the performance of a party of any of its obligations pursuant to
        this Agreement is prevented, restricted, or interfered with by any
        circumstances beyond the reasonable control of that party, including
        without limitation, (a) fire, explosion, epidemic, hailstorm,
        hurricane, lightning, tornado, cyclone, flood, or other act of nature,
        (b) unavailability of supplies or sources of energy, power failure or
        breakdown of machinery, (c) war, revolution, civil commotion, acts of
        public enemies, blockade, or embargo, (d) any law, order, proclamation,
        regulation, ordinance, demand, or requirement of any government or any
        subdivision, authority or representative of any government, or (e)
        labor difficulties, including, without limitation, strikes, slowdowns,
        picketing or boycotts, then the party whose performance has been
        prevented, restricted, or interfered with shall be excused from such
        performance on a day-to-day basis to the extent of such prevention,
        restriction, or interference; provided such party shall use its best
        efforts to avoid or remove such causes of non-performance and shall
        proceed to perform with dispatch whenever such causes are removed or
        cease. In the event Nortel is unable to perform the Testing in
        accordance with Nortel's schedule as a result of any non-performance by
        interWAVE which is excused pursuant to this Section, Nortel shall be
        entitled to reschedule such Testing as Nortel determines to be
        appropriate.

                                    ARTICLE 13
                                   REGISTRATION

                                                                 Page 14 of 29

<PAGE>

13.1    Any approval of this Agreement by the Government of Bermuda, or any
        other government, or any officer or agent thereof, which is required
        to enable interWAVE to perform this Agreement shall be secured in
        writing by interWAVE who shall supply the same, or a true copy
        thereof, to Nortel within ninety (90) days of the date of execution
        of this Agreement.

                                    ARTICLE 14
                                     DURATION

14.1.   This Agreement shall commence on the date of its execution and
        terminate (save with the exception of the survivorship provisions)
        upon termination of the OEM Agreement, unless earlier terminated as
        hereinafter set forth, provided that upon termination, the parties
        agree to negotiate in good faith the extension of those portions of
        this Agreement relevant to interWAVE's ongoing support obligations
        to Nortel including any obligations arising under the ORIGINAL
        EQUIPMENT MANUFACTURING (OEM) AGREEMENT.

                                    ARTICLE 15
                                    TERMINATION

15.1.   BREACH: In the event either Party shall be in breach of, or fail to
        perform one or more of its material obligations under, this Agreement,
        the other Party may, by notice to the Party in default, require the
        remedy of the breach or the performance of the obligation and, if the
        Party so notified fails to remedy such breach or perform such
        obligation within ninety (90) days of the forwarding of a notice so to
        do, the other Party may, by notice, terminate this Agreement.

15.2.   UNENFORCEABILITY: In the event of an enforceable decision or
        directive declaring invalid an essential part of this Agreement,
        without which this Agreement would not have been entered into, this
        Agreement may, at the option of either Party, be terminated upon the
        giving of notice to the other Party.  Save as before set forth, in
        the event that any term, clause, provision or condition of this
        Agreement shall be similarly adjudged invalid for any reason
        whatsoever, such invalidity shall not affect the validity or
        operation of any other term, clause, provision or condition and such
        invalid term, clause, provision or condition shall be deemed to have
        been deleted from this Agreement.

15.3.   INSOLVENCY: In the event interWAVE commits any act of bankruptcy, or
        compounds with its creditors; or a petition or receiving order in
        bankruptcy is presented or made against interWAVE; or a petition for
        an administration order is presented in relation to interWAVE; or a
        resolution or petition to wind up interWAVE (other than for a legal
        reconstruction, reorganization or amalgamation) or a receiver or
        administrative receiver is appointed; and such act or petition is not
        cured, dismissed, or withdrawn within sixty (60) days thereafter; or
        interWAVE ceases to carry on business, Nortel may, without any delay,
        by notice, terminate this Agreement.  Any licenses and rights granted
        under this Agreement by interWAVE to and through Nortel are, for
        purposes of Section 365(n) of the U.S.  Bankruptcy Code, licenses of
        "intellectual property" within the meaning of Section 101 of the
        Bankruptcy Code.  Upon the commencement of a bankruptcy proceeding
        involving interWAVE, Nortel shall be entitled to retain and may fully
        exercise all rights and elections available under the Bankruptcy Code.

15.4.   GOVERNMENTAL APPROVALS:  In the event this Agreement does not receive
        all requisite approvals of any Government or governmental agency or
        officer within the period

                                                                 Page 15 of 29

<PAGE>

      stipulated in Article 13 ('Registration") hereof, this Agreement may, at
      the option of either Party, be terminated upon notice to the other
      Party, but such termination shall not affect any undertakings of
      confidentiality or non-use provided in this Agreement.

15.5. PRODUCT SOFTWARE: Notwithstanding anything else contained herein, in
      the event this Agreement is terminated, each sublicensee of Product
      Software shall continue to have the right to use Product Software
      provided:

      (a)   such sublicensee is not in default under its written sublicense
            agreement with interWAVE; and

      (b)   such sublicense agreement is not inconsistent with the terms of
            this Agreement.

15.6. SURVIVAL: The provisions of Article 2 (Technical Information Grant),
      Article 4 (Software Grant), Article 8 ("Confidential Information")
      related to confidentiality and non-use, the provisions of Article 9
      ("Grant Back License"), the provisions of Article 10 ("Development
      Agreements"), and the provisions of Article 11 ("Liability") shall
      survive the termination of this Agreement.  Upon any termination of
      this Agreement, interWAVE shall, at Nortel's expense, ship the Test Bed
      to a location in the continental United States as designated by Nortel.

                                   ARTICLE 16

                               DISPUTE RESOLUTION

16.1. In the event the Parties are unable to amicably settle disputes between
      them, and unless the Parties mutually elect to pursue an alternative
      dispute procedure, whether binding or non-binding, all actions or
      proceedings to enforce, or which arise in connection with or relate to,
      this Agreement, any of the agreements in the form of Exhibits hereto or
      any of the transactions contemplated hereby or thereby shall be brought
      and litigated exclusively in the United States District Court, Northern
      District of California (or, in the event such court does not have
      jurisdiction, the courts of the State of California located in such
      district), unless such actions or proceedings are required to be
      brought in another court to obtain subject matter jurisdiction over the
      matter in controversy.  In any such actions or proceedings, service of
      process may be made upon the other Party hereto by registered or
      certified mail, return receipt requested, to its address indicated
      herein, which service shall be deemed effective 10 days after mailing.
      Each of the Parties hereto (i) consents to the jurisdiction of such
      court or courts and to service of process by registered or certified
      mail, as provided above, or by any other manner provided by the laws of
      the State of California and the rules of such courts and (ii) waives
      any right it may have to assert the doctrine of FORUM NON CONVENIENS,
      to assert that it is not subject to the jurisdiction of such courts or
      to object to venue to the extent any action or proceeding is brought in
      accordance with this sub-clause.

16.2  WAIVER OF TRIAL BY JURY. INTERWAVE AND NORTEL WAIVE THE RIGHT TO A
      TRIAL BY JURY IN ANY ACTION OR PROCEEDING UNDER THIS AGREEMENT OR ANY
      ACTION OR PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED
      HEREBY, REGARDLESS OF WHICH PARTY INITIATES ANY SUCH ACTION OR
      PROCEEDING.

                                  ARTICLE 17

                                                                 Page 16 of 29
<PAGE>

                                   NOTICES

17.1. FORM OF NOTICE: Any and all notices or other information to be given by
      one of the Parties to the other shall be in writing and shall be deemed
      sufficiently given when forwarded by prepaid, registered or certified
      first class air mail or by telegram, telex, facsimile transmission or
      hand delivery to the other Party at the following address:

      (a)  if to Nortel:                Northern Telecom Limited
                                        8200 Dixie Road, Suite 100
                                        Brampton, Ontario
                                        Canada L6T 5P6
                                        Attention: Secretary

      (b)  if to interWAVE:             interWAVE Communications International
                                        656 Bair Island Road
                                        Redwood City, CA 94063
                                        Attention: Chief Financial Officer

      and such notices shall be deemed to have been received fifteen (15)
      business days after mailing if forwarded by mail, and the following
      business day if forwarded by telegram, telex, facsimile transmission or
      hand.

17.2. CHANGE OF ADDRESS: The aforementioned address of either Party may be
      changed at any time by giving fifteen (15) business days prior notice
      to the other Party in accordance with the foregoing.

17.3. BEST EFFORTS: In the event of a generally-prevailing labor dispute or
      other situation which will delay or impede the giving of notice by any
      such means, in either the country of origin or of destination, the
      notice shall be given by such specified mode as will be most reliable
      and expeditious and least affected by such dispute or situation.

                                  ARTICLE 18
                                  ASSIGNMENT

18.1. ASSIGNMENT: This Agreement shall not be assigned or transferred by
      either Party, whether by way of merger, amalgamation, consolidation,
      reorganization, assignment, transfer, operation of law or otherwise,
      except with the written consent of the other or as otherwise provided
      pursuant to this Article.

18.2. Notwithstanding section 18.1, nothing herein shall prevent interWAVE
      from asssigning this Agreement, in its entirety, including all of its
      rights hereunder, to any person (the "Assignee"):

           (a) to whom interWAVE transfers substantially all of its assets; or

           (b) with whom interWAVE merges, amalgamates, consolidates or
               reorganizes and who thereby becomes the successor to the
               business of interWAVE;

      provided that:

           (a) if such Assignee is a Competitor of Nortel (as defined below)
               the provisions of section 18.4 below shall apply; and

                                                                Page 17 of 29
<PAGE>

              (b) the financial condition of such Assignee as of the date of
              such assignment shall be not substantially worse than the
              financial condition of interWAVE as of the Effective Date of
              this Agreement; and

              (c) such Assignee agrees in writing to Nortel (the
              "Acknowledgment") that it has assumed all obligations of
              interWAVE hereunder and shall be bound by the terms and
              conditions of this Agreement.

18.3.     For the purpose of this section a "Competitor of Nortel" means any
          person with whom Nortel competes and which has greater than two
          (2%) percent market share in the wireless telecommunications
          infrastructure products market.  Notwithstanding the foregoing, a
          person shall not be deemed to be a Competitor of Nortel simply by
          virtue of any competition arising solely from its acquisition of
          the business of interWAVE.  Nortel shall, from time to time, upon
          request from interWAVE, and in consultation with interWAVE, provide
          interWAVE with a current list of Competitors of Nortel and
          interWAVE shall be entitled to rely on such list for the purposes
          of section 18.2 until the later of: (i) one hundred and eighty
          (180) days from the date of issue by Nortel; or (ii) the date on
          which a new list is received by interWAVE.

18.4.     If the Assignee is a Competitor of Nortel, then within thirty (30)
          days of Nortel's receipt of the Acknowledgment, Nortel shall be
          entitled, at its option effective upon written notice to
          interWAVE, to terminate the following provisions of this Agreement
          (a "Partial Termination"): "Furnishing of Technical Information"
          (Article 5), "Technical Assistance and Testing Services" (Article
          6), "Mobile Switching Centre" (Section 7.1), GSM Component
          Purchases (Section 7.2), and "Access" (Section 7.4) and to
          terminate any Development Agreement made between the parties as
          contemplated by Article 10.  In the event:

          (a)     of a Partial Termination; or

          (b)     that this Agreement is terminated by interWAVE as a result
                  of a breach hereunder by Nortel; or,

          (c)     that this Agreement is terminated as a result of a breach
                  by Nortel under the OEM Agreement causing a termination of
                  the OEM Agreement; or

          (d)     that this Agreement is terminated by Nortel pursuant to the
                  provisions of section 15.2 hereof (Unenforceability),

Nortel shall refund to interWAVE, in either $US dollars or interWAVE shares
at Nortel's option, an amount calculated in accordance with the provisions of
Schedule D.  Notwithstanding the foregoing, Nortel shall pay the refund in
cash if the Fair Market Value (defined in accordance with the principles
articulated in Section 3.4(d)(iv)(d) of interWAVE's By-Laws) of one share of
interWAVE Series G Preferred Stock (a "Share") is less than six dollars and
six cents United States dollars ($U.S.6.06) per share.

18.5.     Notwithstanding section 18.1, this Agreement may be assigned by
          Nortel to any of its Subsidiaries or Affiliates upon notice to
          interWAVE.

18.6.     Notwithstanding any assignment, the Parties hereto shall remain
          liable for their respective obligations hereunder

                                                                 Page 18 of 29

<PAGE>

                                  ARTICLE 19

                                    GENERAL

19.1.     GOVERNMENTAL APPROVALS:  The Parties recognize that the transfer of
          Technical Information and Development Software to foreign countries
          may be subject to the specific approval of the governments of said
          foreign countries, or various agencies thereof, and international
          control organizations in which that government participates, and
          that such governments or agencies may require further approval
          before the communication or transfer of any Technical Information
          or the sale of interWAVE Products and Developed Products is made to
          or for a country other than the U.S.A. Accordingly, interWAVE shall
          not sell or lease interWAVE Products and Developed Products or
          transfer or communicate Technical Information into any such
          countries without receiving such prior specific approval.

19.2.     PREEXISTING DUTIES:  Nothing in this Agreement shall be construed
          as requiring Nortel to disclose Technical Information, to grant
          rights under licenses, or to render any technical assistance, which
          would violate any confidentiality undertakings which it has towards
          third persons or which would violate any present or future law or
          decree of any government or governmental officer or agency, and
          nothing contained herein shall require the disclosure of Technical
          Information which would increase or impose any obligations on
          Nortel with respect to third parties.  In the event that Nortel
          determines that any disclosure by it hereunder would require the
          consent of any third party, Nortel agrees to use reasonable efforts
          to obtain the consent of such third party to the disclosure.

19.3.     EXCLUSIONS:  Nothing contained in this Agreement shall be construed
          as:

          (a)     requiring Nortel to file any patent application, to secure
                  any patent or other intellectual property right or to
                  maintain any patent or other intellectual property right in
                  force;

          (b)     constituting a warranty or representation by Nortel as to the
                  validity or scope of any patent or other intellectual
                  property right licensed hereunder;

          (c)     constituting a warranty or representation by Nortel that any
                  manufacture, use, lease, sale or sublicense by interWAVE
                  hereunder will be free from infringement of patents or other
                  intellectual property rights other than those under which,
                  and to the extent to which, licenses are granted hereunder;

          (d)     constituting an agreement to bring or prosecute actions or
                  suits against third parties for infringements;

          (e)     conferring any right to use, in advertising, publicity or
                  otherwise, any name, trade name or trademark, or any
                  contraction, abbreviation or simulation thereof; or

          (f)     conferring by implication, estoppel or otherwise upon
                  interWAVE any license or other right under any patent or
                  other intellectual property right, except the licenses and
                  rights expressly granted hereunder to interWAVE.

19.4.     AUTONOMY: Nothing contained in this Agreement shall limit in any
          manner Nortel's right to discontinue or change the design or
          characteristics of its products at any time without notice and
          without liability.

                                                                 Page 19 of 29
<PAGE>

19.5.     NOTICE OF BREACH:  The failure of either Party to give notice to
          the other Party of the breach or non-fulfillment of any term,
          clause, provision or condition of this Agreement shall not
          constitute a waiver thereof, nor shall the waiver of any breach or
          non-fulfillment of any term, clause, provision or condition of this
          Agreement constitute a waiver of any other breach or
          non-fulfillment of that or any other term, clause, provision or
          condition of this Agreement.

19.6.     INTEGRATION / ENTIRE AGREEMENT: This Agreement sets forth the entire
          agreement and understanding between the Parties with respect to
          Technical Information and interWAVE's use thereof, save for
          Development Agreements, and supersedes and cancels all previous
          negotiations, agreements, commitments and writings in respect to the
          subject matter hereof.  Neither Party hereto shall be bound by any
          term, clause, provision or condition save as expressly provided in
          this Agreement or as duly set forth on or subsequent to the date
          hereof in writing, signed by duly authorized officers of the Parties.

19.7.     INDEPENDENT PARTIES:  Nothing in this Agreement shall be construed
          as establishing or implying any partnership between the Parties
          hereto, and nothing in this Agreement shall be deemed to constitute
          either of the Parties hereto as the agent of the other Party or
          authorize either Party to incur any expenses on behalf of the other
          Party or to commit the other Party in any way whatsoever, without
          obtaining the other Party's prior written consent.

19.8.     CONFIDENTIALITY OF TERMS, PUBLICITY:  The existence of this
          Agreement, as well as its terms and conditions, shall be held in
          confidence by both Parties and only disclosed as may be agreed to
          by both Parties or as may be required to meet security disclosure
          or export permit requirements.  Neither Party shall make public
          statements or issue publicity or media releases with regard to this
          agreement or the relationship between the Parties without the prior
          written approval of the other Party.

19.9.     GOVERNING LAW:  This Agreement and all Purchase Orders shall be
          governed by the laws of the State of California, without
          application of conflict of law rules.  The Vienna International
          Convention for the Sale of Goods shall not apply.

          IN WITNESS WHEREOF, the Parties hereto have signed and executed
this Agreement on the date first above mentioned.

NORTHERN TELECOM LIMITED          interWAVE Communications International, Ltd.

Per: /s/ [ILLEGIBLE]                   Per: /s/ [ILLEGIBLE]
    --------------------              ---------------------

Per:                              Per:
    --------------------              ---------------------

                                                                 Page 20 of 29

<PAGE>

                                SCHEDULE "A"

                             SUPPORT INFORMATION

A-interface

<TABLE>
<CAPTION>
#   Title                 Reference                Description
-----------------------------------------------------------------------------------------------
<S> <C>                   <C>                      <C>
1   Approved GSM          http://136.147.68.68/    References the latest GSM specs.
    specs. Reference      plm/PLP/index.html       That are used by Nortel
    table
-----------------------------------------------------------------------------------------------
2   BSS v9 conformance    Pe/bss/dd/94             Provides the table of compliance
    to GSM phase2         3.2en                    against the latest GSM specs.
-----------------------------------------------------------------------------------------------
3   BSS fmg validation    Pe/sys/djd/244           Test specifications used to establish
    test specification    5.1en                    compliancy
-----------------------------------------------------------------------------------------------
4   BSS load, fmg,        Pe/sys/djd/402           Test spec for traffic management
    stability test spec                            functions under load
-----------------------------------------------------------------------------------------------
5   GSM BSSMAP spec.      Pe/bss/dd/0060           A interface procedure definition in the
    Procedures            V8.02                    view of the BSS
-----------------------------------------------------------------------------------------------
6   GSM BSSMAP spec.      Pe/bss/dd/0066           A interface message dictionary
    Messages              V8.02
-----------------------------------------------------------------------------------------------
7   DMS-MSC MAP           PLS/MMA2BC               Complete MAP Phase 2 spec
    Phase 2
    Specification
-----------------------------------------------------------------------------------------------
8   NSS GSM08             http://136.147.68.68/    This document provides the NSS
    compliance            rdops/sysint/SPECX       compliance table for the GSM08
                          FR/approved spec/i       release
                          ndex.html
-----------------------------------------------------------------------------------------------
</TABLE>

Air-interface

<TABLE>
<CAPTION>
#   Title                           Reference                Description
-----------------------------------------------------------------------------------------------
<S> <C>                             <C>                      <C>
9   BSS L1M validation test         Pe/sys/djd/025           BSS v10 layer 1
    specification                   0                        management
                                    V06.02/en                functions
-----------------------------------------------------------------------------------------------
10  BSS TMG validation test         Pe/sys/djd/024           Traffic management
    specification Tome1             4                        functional test (V10)
                                    V06.02/en
-----------------------------------------------------------------------------------------------
11  BSS TMG validation test         Pe/sys/djd/024           Traffic management
    specification Tome2             2                        functional test (V10)
                                    V02.02/en
-----------------------------------------------------------------------------------------------
</TABLE>

                                                                  Page 21 of 29
<PAGE>

MSC - PSTN (SS7,R1,R2,PRI)

<TABLE>
<CAPTION>
#   Title                           Reference                Description
-----------------------------------------------------------------------------------------------
<S> <C>                             <C>                      <C>
12  NSS GSM08 compliance            http://136.147.68.68     This document
                                    /rdops/sysint/SPEC       provides the NSS
                                    XFR/approved_spec        compliance table for
                                    /index.html              the GSM08 release
-----------------------------------------------------------------------------------------------
13  ETSI ISUP Specification         PLS/ETSIISUP/AD0         Generic list of
                                    4                        specification and
                                                             procedure to adopt
                                                             country specific ISUP
-----------------------------------------------------------------------------------------------
14  ETSI ISUP R2 Interworking       PLS/ETSIIR2IW/AB         Specification and tests
                                    03                       for R2 PSTN
                                                             termination
-----------------------------------------------------------------------------------------------
15  ETSI PRI < > ETSI ISUP          PLS/EPRIESUP/AA          Specification and tests
    Interworking                    09                       for PRI PSTN
                                    Release 8.3              termination
-----------------------------------------------------------------------------------------------
</TABLE>

MSC - TWF

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
#   Title                           Reference                Description
-----------------------------------------------------------------------------------------------
<S> <C>                             <C>                      <C>
16  MSC/IWF interface Protocol      PLS/MSCIWF               Specifies the interface with
    Specification                                            the Motorola IWF
-----------------------------------------------------------------------------------------------
</TABLE>

MAP (HLR - MSC, MSC - MSC, SMS - HLR/MSC, HLR/MSC-SIM)

<TABLE>
<CAPTION>
#   Title                           Reference                Description
-----------------------------------------------------------------------------------------------
<S> <C>                             <C>                      <C>
17  DMS HLR MAP v.2                 Ae1338rt.ab01            Description of the MAP access
    Support                                                  protocols to the HLR
-----------------------------------------------------------------------------------------------
18  DMS HLR basic                   Ae1338dd.ab01            Description of inter-MSC
    roaming                                                  protocols for roaming
-----------------------------------------------------------------------------------------------
19  HLR/AUC PS FILE                 FMDOC/HMDFT              Describes the interfaces
    TRANSFER SPEC.                                           supported by the HLR/AUC
                                                             Provisioning Server for the
                                                             processing of files containing
                                                             provisioning data.
-----------------------------------------------------------------------------------------------
20  MOBILE SUBSCRIBER               PLS                      Describes the interface between
    PROVISIONING                    FMDOC/MSPPS              the (AdC) for subscription
    PROTOCOL                                                 administration towards a DMS
                                                             HLR via a DMS HLR/AUC
                                                             Provisioning Server (HLR-PS).
-----------------------------------------------------------------------------------------------
21  SIM PERSONALIZATION             PLS                      Describes the interface between
    SYSTEM INTERFACE                FMDOC/SPSIS              the SIM Personalization System
                                                             (SPS) and the HLR/AUC
                                                             Mediation Device for the
                                                             creation and deletion of
                                                             subscribers.
-----------------------------------------------------------------------------------------------
</TABLE>

VMS - MSC/HLR

<TABLE>
<CAPTION>
#   Title                           Reference                    Description
-----------------------------------------------------------------------------------------------
<S> <C>                             <C>                          <C>
22  VMS acceptance test             Inter - op test lab library  Lists the test cases and
    plan                                                         procedures for VMS
-----------------------------------------------------------------------------------------------
</TABLE>

                                                                  Page 22 of 29
<PAGE>

SMS - MSC/HLR
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
#    Title                      Reference                     Description
-----------------------------------------------------------------------------------------
<S>  <C>                        <C>                           <C>
23   SMS acceptance test plan   Inter - op test lab library   Lists the test cases and
                                                              procedures for SMS
-----------------------------------------------------------------------------------------
</TABLE>

BILLING
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
#    Title                      Reference                     Description
-----------------------------------------------------------------------------------------
<S>  <C>                        <C>                           <C>
24   MSC FTAM                   PLS/DOC/MSC/FTAM              Describes the structure of
                                                              the CDR in FTAM mode
-----------------------------------------------------------------------------------------
25   MSC XFER                   PLS/DOC/MSC/XFER              Describes the structure of
                                                              the CDR in XFER mode
-----------------------------------------------------------------------------------------
26   Q-239-1 MSC                PLS/DOC/MSC/Q239              Lists CDR parameters
-----------------------------------------------------------------------------------------
</TABLE>

PBX INTERWORKING
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------
#    Title                      Reference                     Description
-------------------------------------------------------------------------------------------
<S>  <C>                        <C>                           <C>
27   PABX Interworking          Document in progress          This document will describe
     test specification                                       the interworking test for GSM
                                                              MSC with Nortel PBX products
-------------------------------------------------------------------------------------------
</TABLE>

                                                                   Page 23 of 29

<PAGE>

                                 SCHEDULE "B"

                               NORTEL LAB COSTS

<TABLE>
<S>                                                     <C>
       NTP Documentation*                               $200/doc
       Consulting Services                              $195/hr
       Engineering Support                              $195/hr

       Lab Setup Fee                                    $3200/visit
       Test Plan Review Fee                             $1200/plan
       Onsite Lab Access (incl. Technical Support)      $3120/day

       Remote Lab Access                                $3120/day
       Author Test Plan                                 $8000/plan
       Exit Report                                      $5200/report

       MSC Access Cost
            Lab Setup Fee                               $3200/visit
            Engineering Support [two engineers]         $390/hr
</TABLE>

-   Documentation fees are per document and do not include interpretation.
    *"NTP" means Northern Telecom Practice.

-   Consulting Services and Lab Access are quoted per job based on a specific
    statement of work.

-   On site and remote access is available in one-day (i.e., 8-hour) increments.

-   Fees are required in advance.

                                                                   Page 24 of 29

<PAGE>

                                  SCHEDULE C

                           TEST BED SPECIFICATIONS

<TABLE>
<CAPTION>
Part No.                   Description                   Qty
-------------------------------------------------------------
<S>             <C>                                      <C>
M5060N          WAVEXchange NSS                          1
S500400N        WAVEXchange NSS S/W - Base               1
S500500N        WAVEXchange NSS S/W - per TRX            24

M5030N          WAVEXpress BSC-30                        2

M5320N          WAVEXpress 3-TRX BTS (900Mhz)            4

M5322N          WAVEXpress 3-TRX BTS (1800Mhz)           4

M8050SN         WAVEView OMC-200                         1
S500600N        WAVEView OMC-200 S/W - Base              1
S500700N        WAVEView OMC-200 S/W - per TRX           24
</TABLE>

interWAVE shall provide like for like card substitutions to allow Nortel to
test GSM 1900 versions of interWAVE products.

                                                                   Page 25 of 29

<PAGE>

                                  SCHEDULE D
                          PARTIAL TERMINATION REFUND

<TABLE>
<CAPTION>
DATE OF PARTIAL TERMINATION    PERCENT REFUND    INTERWAVE SHARES* OR US$*
--------------------------------------------------------------------------
<S>                            <C>               <C>               <C>
Prior to 1st Anniversary**          65%          375,556           $2.275 m
Prior to 2nd Anniversary            45%          260,000           $1.575 m
Prior to 3rd Anniversary            30%          173,333           $1.05 m
Prior to 4th Anniversary            15%           86,667           $0.525 m
After 4th Anniversary               0               0              $0
</TABLE>

* For greater certainty, the refund shall be paid in Shares or cash, but not
both, and the amounts shown are based on consideration of three million, five
hundred thousand US dollars (US$3,500,000) or five hundred and seventy-seven
thousand, seven hundred and seventy-eight (577,778) interWAVE shares.

** Anniversary refers to the anniversary of the Effective Date.

                                                                   Page 26 of 29<PAGE>

                                                                  EXHIBIT 10.6

                         REVISED OEM PURCHASE AGREEMENT

THIS AGREEMENT  NO. [ ........] is made this [ 27TH ] day of [March    ] 1998

BETWEEN

A)       NORTHERN TELECOM LIMITED, a company incorporated under the laws of
         Canada, having an office at 8200 Dixie Road, Brampton, Ontario, L6T 5P6
         Canada, (hereafter referred to as "NTL")

AND

B)       interWAVE Communications International, a B.V. company incorporated in
         the Netherlands with offices at Emmaplein 5, 1075 AW Amsterdam, P.O.
         Box 75215m 1070 Amsterdam, The Netherlands, (hereinafter referred to as
         "the Supplier").

         collectively referred to as the "Parties" and individually as "Party".

WHEREAS the Purchaser desires to purchase Goods and Services in accordance with
the Specifications and requirements detailed in the Agreement and the Supplier
agrees to supply the same, subject to the terms and conditions set out hereunder
and the Schedules comprising part of the Agreement.

IT IS HEREBY AGREED BETWEEN THE PARTIES AS FOLLOWS:

1.       Definitions

The following definitions shall apply to the Agreement and all Purchase Orders:

         a)       "Affiliates" shall, in the case of NTL, include the parent
                  corporation Northern Telecom Limited, and Northern Telecom
                  Inc., and any corporation which the parent corporation
                  controls directly or indirectly, through the ownership or
                  control of shares or securities in such other corporation, or
                  otherwise, and in the case of the Supplier shall include the
                  parent corporation interWAVE Communications International,
                  Ltd., a Bermuda corporation, and any corporation which the
                  parent corporation controls directly or indirectly, through
                  the ownership or control of shares or securities in such other
                  corporation, or otherwise.

         b)       "Agreement" shall mean this agreement between the Purchaser
                  and the Supplier for the supply of Goods and Services,
                  including herein all documents to which reference may properly
                  be made in order to ascertain the rights and obligations of
                  the Parties.

         c)       "Customer(s)" shall mean any customer of the Purchaser for
                  which Goods and/or Services may ultimately be required.

                                 PAGE 1 OF 58
<PAGE>

         d)       "Equipment" shall mean the materials and hardware described in
                  Schedule 10.

         e)       "Goods" shall be the collective term given to Equipment and
                  Software.

         f)       "OEM Purchase Agreement Number" shall mean the Agreement No.
                  first above written.

         g)       "Purchase Order(s)" shall mean the Purchaser's order placed on
                  the Supplier in accordance with Clause 4 of the Agreement for
                  the supply of Goods and/or Services for which the terms and
                  conditions under the relevant Schedule and those referred to
                  under Clause 6 shall apply.

         h)       "Purchaser" shall mean NTL and any Amliate issuing Purchase
                  Orders under this Agreement.

         i)       "Services" shall mean the services to be provided by the
                  Supplier to the Purchaser as detailed in any Purchase
                  Order(s), including but not limited to, engineering services
                  and Technical Support.

         j)       "Specification" shall mean the document(s) detailed in
                  Schedule 3.

         k)       "Software" shall mean software programs and associated
                  documentation described in Schedule 10.

         l)       "Technical Support" shall mean the provision, by the Supplier,
                  of the support and maintenance services for Equipment and
                  Software as detailed in Schedule 4, Clause 4.

         m)       The singular includes the plural and vice versa, where the
                  context so requires.

         n)       The masculine includes the feminine and vice versa.

2.       SCOPE

         The Agreement provides a simplified procedure under which, from lime m
         time, the Purchaser may place Purchase Orders for the supply of Goods
         and/or Services in accordance with the terms detailed therein. The
         Goods and Services which may be supplied under the Agreement are:

         2.1      Supply of Goods;

         2.2      Engineering/Installation Services (only to the extent mutually
                  agreed upon by the parties);

         2.3      Spares of Equipment;

         2.4      Support services in accordance with the provisions of Schedule
                  4;

         2.5      Training courses for Purchaser and Customer personnel in
                  accordance with Schedule 5; and

         2.6      Documentation for Goods as described in Schedule 3.

3.       TERM AND TERMINATION OF THE AGREEMENT

                                 PAGE 2 OF 58
<PAGE>

         3.1      The Agreement shall commence on the date first above written
                  and shall, subject to the earlier termination in accordance
                  with the provisions contained therein, continue for a period
                  of five (5) years wherein it shall terminate unless extended
                  for such further period or periods as shall be agreed, in
                  writing, between the Parties.

         3.2      Without prejudice to other rights, either party shall have the
                  right forthwith to terminate the Agreement upon written
                  notice, including all Purchase Orders, and to claim for any
                  resulting losses or expenses if the other party commits a
                  breach of the Agreement and fails to remedy the breach within
                  60 days of written notice from the non-defaulting parties
                  indicating: (i) the nature and basis of such default with
                  reference to the applicable provisions of this Agreement, and
                  (ii) the non-defaulting party's intention to terminate this
                  Agreement under this sub-clause 3.2 if such default continues.

         3.3      Termination of this Agreement shall not affect the validity of
                  software licenses for Equipment previously sold by Supplier.
                  Upon termination of the Agreement pursuant to sub-clause 3.2,
                  all obligations of both parties accruing after the date of
                  termination, shall be terminated (except as set forth in
                  sub-clause 3.4), including Purchaser's obligation to pay
                  penalties for subsequent quarters pursuant to Schedule 9,
                  provided that any such termination shall have no effect on the
                  terminating party's rights to claim for any resulting losses
                  and expenses as set forth in sub-clause 3.2.

         3.4      The provisions of Clauses 7, 10 and sub-clause 11.5 shall
                  survive any termination or expiration of this Agreement.

4.       ORDERING PROCEDURE AND FORECAST

         4.1      Goods and Services shall be supplied in accordance with
                  accepted Purchase Order submitted by the "Procurement
                  Administrator" of the Purchaser. Such Procurement
                  Administrator is detailed in Schedule 7.

         4.2      Purchase Orders will be sent to the address detailed in
                  Schedule 7.

         4.3      All Purchase Orders will quote the "OEM Purchase Agreement
                  Number" and the Supplier's Part Number (as shown in Schedule
                  2 ).

                  4.3.1    This Agreement will be supplemented by a
                           configuration guide to be completed jointly by the
                           Purchaser and Supplier within 30 days of signing this
                           Agreement. The material in the configuration guide
                           shall be created to assist the Purchaser in
                           developing sales materials and to facilitate the
                           ordering process as further described in sub-clause
                           4.3.2.

                  4.3.2    This Agreement will be supplemented by an ordering
                           guide to be completed jointly by the Purchaser and
                           Supplier within 45 days of signing this Agreement.
                           The material in the ordering guide will contain
                           further clarifications to Schedule 2 and will be
                           consistent with the contents of this Agreement. In
                           the case of dispute between this agreement and the
                           ordering guide, this agreement shall prevail. The
                           sole purpose of these actions will be to simplify the
                           ordering and delivery of the goods and is not meant
                           to alter or modify this agreement.

                                 PAGE 3 OF 58
<PAGE>

         4.4      The Supplier hereby agrees to acknowledge all Purchase Orders
                  which conform to the terms of the Agreement. The Supplier
                  shall forward a written acknowledgement of receipt of Purchase
                  Orders within 2 working days of receipt thereof to the address
                  given in Schedule 7 (sub-clause 3.1), and written acceptance
                  or rejection within seven (7) days, failing which the Purchase
                  Order shall be deemed accepted by the Supplier. Supplier shall
                  use best efforts to accept Purchase Orders for aggregate
                  quantities up to those in Purchaser's forecast for the
                  corresponding period as described in Schedule 2. All Purchase
                  Orders once accepted shall constitute separate and individual
                  contracts under the Agreement.

         4.5      The delivery/performance lead times for Goods and Services are
                  detailed in Schedule 2 Paragraph 4.

         4.6      Periodic Reviews and Goods Volume Forecast

                  4.6.1    Purchaser shall provide forecasts of the Purchaser's
                           required volume of Goods as set forth in Schedule 2.
                           Manufacture of Goods in advance of receipt of valid
                           Purchase Orders shall be at the Supplier's sole risk
                           and expense, except as set forth in Schedule 9.

                  4.6.2    The Parties will meet monthly to review each other's
                           performance of its obligations under the Agreement.
                           Such reviews will include:

                           4.6.2.1     The Suppliers performance in respect off
                                       quality requirement stock holding levels,
                                       lead times;

                           4.6.2.2     Price;

                           4.6.2.3     Forward order book;

                           4.6.2.4     Forecasts and orders and open technical
                                       issues; and

                           4.6.2.5     under the Agreement.

         4.7      Each Affiliate may, but shall not be obligated to, issue
                  Purchase Orders to the Supplier, and the Supplier shall
                  fulfill such Purchase Order in accordance with the provisions
                  of this Agreement. Each Purchase Order issued to Supplier
                  shall create rights and obligations solely between the
                  Supplier and the Affiliate which issues the Purchase Order. No
                  Affiliate shall be liable to Supplier for performance of any
                  obligation of another Affiliate arising in connection to this
                  Agreement. For purpose of this Agreement, an Affiliate issuing
                  a Purchase Order shall be considered as Purchaser in terms of
                  the rights and obligations set forth in this Agreement. Such
                  Purchase Orders shall be submitted to the Supplier by the
                  Affiliate through the Procurement Administrator as set forth
                  in Schedule 7.

5.       PRICE

         5.1      The price(s) to be paid by the Purchaser for the supply of
                  Goods and Services:

                                 PAGE 4 OF 58
<PAGE>

                  -        are detailed in Schedule 2 of the Agreement., as may
                           be amended from time to time in accordance with the
                           provisions detailed therein;

                  -        will be stated on the Purchase Order and shall be
                           consistent with this Agreement;

                  -        are exclusive of VAT, sales and all other like taxes,
                           customs, duties, tariffs, and other similar charges,
                           provided that the Supplier agrees not to assess any
                           applicable excise or sales tax where the Purchaser
                           furnishes Supplier a valid tax exemption certificate,
                           a certificate of authority, a direct pay permit
                           and/or any equivalent acceptable to the applicable
                           taxing authority.

                  -        do not include all shipping, freight, delivery and
                           insurance charges for shipments to the address
                           detailed on the Purchase Order in the United States,
                           which will be born by the Purchaser, and unless
                           otherwise agreed to in writing, the Supplier shall be
                           entitled to invoice the Purchaser for the price of
                           Goods shipped outside the United States including any
                           transport, packaging, and insurance charges.

                  -        shall be set forth on the invoice billed to Purchaser
                           along with a reference to the Purchase Order for such
                           Goods.

         5.2      Supplier shall use all reasonable efforts to provide accurate
                  tax, delivery, and insurance information on all invoices where
                  appropriate.

         5.3      The Purchaser shall withhold taxes required to be withheld
                  from payments made by the Purchaser to the Supplier.

         5.4      The price(s) stated in Schedule 2 are FOB Supplier's plant.

6.       PURCHASE ORDER TERMS AND CONDITIONS

         6.1      Unless otherwise agreed in writing by both parties, the terms
                  and conditions detailed in Schedule 1 shall apply to all
                  Purchase Orders and shall prevail over and be to the exclusion
                  of any terms. and conditions proposed by either party in any
                  Purchase Order acknowledgment or any other document.

         6.2      Sub-clause 6.1 shall not serve to prevent either party
                  requesting amendments to the terms and conditions detailed in
                  Schedule 1 to reflect Customer, supplier or other requirements
                  for specific projects. The Parties agree to discuss, in good
                  faith, any such requested amendments.

7.       CONFIDENTIALITY

         7.1      Each of the parties recognizes and agrees that the
                  unauthorized use or disclosure of the other party's
                  confidential or proprietary information relating to such
                  party's business plans, technology, and products
                  ("Confidential Information") would cause irreparable injury to
                  the disclosing party for which it would have no adequate
                  remedy at law, and that an actual or

                                 PAGE 5 OF 58
<PAGE>

                  threatened breach of this Clause shall entitle the disclosing
                  party to obtain immediate injunctive relief prohibiting such
                  breach, in addition to any other rights and remedies available
                  to it. If Confidential Information is disclosed orally, the
                  disclosing party shall notify the receiving party of the
                  confidential nature of the Confidential Information at the
                  time of disclosure and such Confidential Information shall be
                  reduced to writing, marked as confidential and delivered to
                  the receiving party within thirty (30) days after oral
                  disclosure.

         7.2      For the period during and for three (3) years following the
                  last clay of the term all Confidential Information shall be
                  subject to the following:

                  7.2.1    The recipient shall restrict disclosure of the
                           Confidential Information to recipient's employees and
                           contractors with a "need to know" (i.e. employees and
                           contractors that require the Confidential Information
                           to perform their responsibilities in connection with
                           this Agreement) and shall not disclose it to any
                           other person or entity without the prior written
                           consent of the disclosing party,

                  7.2.2    The recipient shall use the Confidential Information
                           only for the purposes of performing under this
                           Agreement;

                  7.2.3    The recipient shall advise those employees and
                           contractors who access the Confidential Information
                           of their obligations with respect thereto;

                  7.2.4    The recipient shall copy the Confidential-Information
                           only as necessary for those employees and contractors
                           who are entitled to receive it and ensure that all
                           confidentiality notices are reproduced in full on
                           such copies; and

                  7.2.5    The recipient shall return all copies of such
                           Confidential Information to the disclosing party at
                           the disclosing party's request.

                  7.2.6    If any Confidential Information is required to be
                           disclosed in response to a valid order of the court
                           or lawful request of a government agency, the
                           recipient shall first notify the disclosing party of
                           the order or request and permit the disclosing party
                           to seek an appropriate protective order.

         7.3      The confidentiality obligations set forth in this Clause 7
                  will not apply to any Confidential Information that:

                  -        becomes known to the general public without fault or
                           breach on the part of the receiving party;

                  -        the receiving party obtains from a third party
                           without breach of a nondisclosure obligation and
                           without restriction on disclosure;

                  -        is furnished to a third party by the disclosing party
                           without a similar restriction on such third party's
                           rights;

                  -        can by written records be shown to have been known by
                           the receiving party at the time of disclosure; or

                                 PAGE 6 OF 58
<PAGE>

                  -        the receiving party can demonstrate to the reasonable
                           satisfaction of the disclosing party was developed
                           independently by employees or contractors of the
                           receiving party who had no access to Confidential
                           Information directly related to such independent
                           development

         7.4      Neither party shall publicly disclose any information
                  regarding the terms and conditions contained herein without
                  having received prior approval, in writing, from the other
                  party.

8.       QUALITY REQUIREMENTS

         The quality requirements detailed in Schedule 6 shall apply to all
         Goods and Services supplied under or in connection with the Agreement.

9.       ENTIRE AGREEMENT

         This Agreement, together with its Schedules and all Purchase Orders,
         along with the Series G Preferred Stock and Warrant Purchase Agreement,
         the Technical Information Agreement, and the Patent License Agreement,
         together constitute the complete statement of the obligations of the
         Parties as to the subject matter hereof and supersedes all previous
         agreements and understandings between the Parties, whether oral or
         written, and may not be modified except in writing signed by the duly
         authorized representatives of both Parties. The OEM Purchase Agreement
         entered into between the parties and dated March 17, 1998 is superseded
         and replaced in its entirety by this Revised OEM Purchase Agreement.

10.      DISPUTES AND GOVERNING LAWS

         10.1     In the event the Parties are unable to amicably settle
                  disputes between them, and unless the Parties mutually elect
                  to pursue an alternative dispute procedure, whether binding or
                  non-binding, all actions or proceedings to enforce, or which
                  arise in connection with or relate to, this Agreement, any of
                  the agreement in the form of Exhibits hereto or any of the
                  transactions contemplated hereby or thereby shall be brought
                  and litigated exclusively in the United States District Court,
                  Northern District of California (or, in the event such court
                  does not have jurisdiction, the courts of the State of
                  California located in such district), unless such actions or
                  proceedings are required to be brought in another court to
                  obtain subject matter jurisdiction over the matter in
                  controversy. In any such actions or proceedings, service of
                  process may be made upon the other Party hereto by registered
                  or certified mail, return receipt requested, to its address
                  indicated herein, which service shall be deemed effective 10
                  days after mailing, Each of the Parties hereto (i) consents to
                  the jurisdiction of such court or courts and to service of
                  process by registered or certified mail, as provided above, or
                  by any other manner provided by the laws of the State of
                  California and the rules of such courts and (ii) waives any
                  right it may have to assert the doctrine of FORUM NON
                  CONVENIENS, to assert that it is not subject to the
                  jurisdiction of such courts or to object to venue to the
                  extent any action or proceeding is brought in accordance with
                  this sub-clause.

         10.2     WAIVER OF TRIAL BY JURY. THE SUPPLIER AND NTL WAIVE THE RIGHT
                  TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING UNDER THIS
                  AGREEMENT OR ANY

                                 PAGE 7 OF 58

<PAGE>

                  ACTION OR PROCEEDING ARISING OUT OF THE TRANSACTIONS
                  CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES
                  ANY SUCH ACTION OR PROCEEDING.

         10.3     This Agreement and all Purchase Orders shall be governed by
                  the laws of the State of California, without application of
                  conflict of law rules. The Vienna International Convention for
                  the Sale of Goods shall not apply.

11.     GENERAL

         11.1     Any notice to be given under the Agreement must be in writing
                  and may either be delivered by hand or sent by prepaid post to
                  the appropriate "Authorized Representative" or "Procurement
                  Administrator" at the address given in Schedule 7.

         11.2     Nothing in this Agreement shall prevent either Party from
                  entering ,into other supply and/or marketing arrangements with
                  third parties for similar Goods and Services except as
                  specified in Schedule 9 or in a manner which otherwise
                  conflicts with the rights granted to the Purchaser under
                  sub-clause 11.1 of Schedule 1.

         11.3     No claim or right arising out of breach of the Agreement by
                  either party may be discharged in whole or in part by any
                  waiver or renunciation of the claim or right unless such
                  waiver or renunciation is in writing, signed by the other
                  party.

         11.4     Neither party may novate or assign this Agreement or any of
                  its rights benefits or obligations arising thereunder without
                  the prior written consent of the other party, except that
                  either party may assign and delegate all of is rights and
                  obligations hereunder in conjunction with a sale of all or
                  substantially all of it business or assets to which the
                  Agreement relates, and that Supplier may assign this Agreement
                  to a Supplier Affiliate provided that Supplier shall remain
                  liable for its obligations hereunder.

         11.5     EXCEPT FOR INDEMNIFICATION UNDER SCHEDULE 1, SECTION 19 (FOR
                  WHICH LIABILITY IS ADDRESSED IN SECTION 19.7) OK WILLFUL
                  BREACH OF CLAUSE 7, IN NO EVENT SHALL EITHER PARTY'S LIABILITY
                  ARISING OUT OF OR RELATED TO THIS AGREEMENT EXCEED THE NET
                  AMOUNTS PAID OR OWED BY PURCHASER TO SUPPLER HEREUNDER DURING
                  THE PREVIOUS TWELVE MONTHS. IN NO EVENT SHALL EITHER PARTY BE
                  LIABLE HEREUNDER, WHETHER IN CONTRACT, TORT (INCLUDING
                  NEGLIGENCE) OR OTHERWISE FOR ANY FORM OF INDIRECT OR
                  CONSEQUENTIAL LOSS, INCLUDING BUT NOT LIMITED TO, LOSS
                  (WHETHER DIRECT OR INDIRECT) OK USE, PRODUCTION, BUSINESS,
                  ANTICIPATED SAVINGS, INCOME OR PROFITS EVEN IF SUCH LOSS WAS
                  REASONABLY FORESEEABLE OR IF SUCH PARTY HAD BEEN ADVISED OF
                  THE POSSIBILITY OF THE OTHER PARTY INCURRING THE SAME.

SCHEDULE 1        TERMS AND CONDITIONS FOR SUPPLY

SCHEDULE 2        PRICES

                                 PAGE 8 OF 58

<PAGE>

SCHEDULE 3        SPECIFICATIONS

SCHEDULE 4        SUPPORT REQUIREMENTS

SCHEDULE 5        TRAINING PROGRAMS

SCHEDULE 6        QUALITY REQUIREMENTS

SCHEDULE 7        ORDERING AND BILLING DETAILS

SCHEDULE 8        ESCROW

SCHEDULE 9        PURCHASING BASELINE AND EXCLUSIVITIES

SCHEDULE 10       PRODUCT DESCRIPTIONS

                                 PAGE 9 OF 58

<PAGE>

IN WITNESS WHEREOF the Parties have entered into this Agreement the day and year
first above written

SIGNED BY
a duly authorized person on
behalf of Northern Telecom Limited

                                        Signature     } /s/: James Cochrane
                                                        -----------------------

                                        Name          }JAMES J. COCHRANE
                                                       ------------------------

                                        Position      }MANAGER M & A
                                                       ------------------------

                                        Signature     }
                                                        -----------------------

                                        Name          }
                                                        -----------------------

                                        Position      }
                                                        -----------------------

SIGNED BY
a duly authorized person on
behalf of interWAVE Communications International

                                        Signature     }/s/:  xxxx
                                                       ------------------------

                                        Name          }THOMAS W. HUBBS
                                                       ------------------------

                                        Position      }Sr. VP CFO
                                                       ------------------------

                                 PAGE 10 OF 58

<PAGE>

SCHEDULE 1

TERMS AND CONDITIONS FOR SUPPLY

<TABLE>
<CAPTION>

CONTENTS                                                                                                               PAGE

<S>                                                                                                                    <C>
1. DEFINITIONS...........................................................................................................12

2. STANDARD AND SCOPE OF WORK............................................................................................12

3. PURCHASER SUPPLIED ITEMS..............................................................................................12

4. DELIVERY..............................................................................................................13

5. QUALITY ASSURANCE.....................................................................................................14

6. REGULATORY COMPLIANCE.................................................................................................14

7. INSPECTION, ACCEPTANCE AND REJECTION..................................................................................15

8. ACCESS................................................................................................................16

9. PAYMENT ..............................................................................................................16

10. TITLE AND RISK.......................................................................................................17

11. LICENSES - GENERAL...................................................................................................17

12. SOFTWARE LICENSE RIGHTS..............................................................................................18

13. BADGING..............................................................................................................18

14. VARIATIONS...........................................................................................................18

15. GUARANTEE............................................................................................................19

16. DELAYS...............................................................................................................23

17. TERMINATION..........................................................................................................23

18. CANCELLATION.........................................................................................................23

19. INTELLECTUAL PROPERTY................................................................................................24

20. INDEMNIFICATION AND INSURANCE........................................................................................25

21. CONFIDENTIALITY......................................................................................................25

22. FORCE MAJEURE........................................................................................................25

23. PROPRIETARY NOTICES..................................................................................................26

24. RECOVERY OF SUMS DUE.................................................................................................26

25. GENERAL..............................................................................................................26
</TABLE>

                                 PAGE 11 OF 58

<PAGE>

1.       DEFINITIONS

         In addition to the definitions detailed in Clause 1 of the Agreement,
         the following definitions shall apply to the Purchase Order:

         a)       "Acceptance" shall mean that the Goods or part thereof have
                  been completed in accordance with the terms of the Purchase
                  Order and to the satisfaction of the Purchaser.

         b)       "Acceptance Tests" shall mean the inspection and testing,
                  including field testing, to be carried out by the Purchaser to
                  establish that the Goods have been completed in accordance
                  with the Purchase Order. The inspection and testing to be
                  carried out are detailed in the Acceptance Test Specification,
                  identified in Schedule 3, and/or such other tests as may be
                  agreed in writing between the Purchaser and the Supplier.

         c)       "Design Defect" shall mean a defect inherent in the design or
                  manufacture of the Goods.

         d)       "Factory Tests" shall mean the inspection and testing of
                  Goods, to be carried out by the Supplier at his works prior to
                  shipment, in accordance with the Factory Test Specification
                  identified in Schedule 3.

2.       STANDARD AND SCOPE OF WORK

         2.1      Goods and Services shall be supplied in accordance with the
                  Specification(s) and Schedules of the Agreement and any other
                  requirements as may be agreed in writing by the parties .

         2.2      The Supplier shall use good quality materials, techniques and
                  standards and execute the Purchase Order with the care, skill
                  and diligence required in accordance with best engineering and
                  telecommunications practice and the provisions of this
                  agreement.

3.       PURCHASER SUPPLIED ITEMS

         All property issued (hereinafter referred to as "Issued Property") by
         the Purchaser to the Supplier under the Purchase Order shall be subject
         to the following:

         3.1      Title in Issued Property shall remain at all times with the
                  Purchaser;

         3.2      Issued Property shall be used solely for the purpose of
                  carrying out the requirements of the Purchase Order, and

         3.3      Issued Property shall be at the risk of the Supplier from
                  delivery to the Supplier's site or other premises, as agreed,
                  until the Issued Property is returned to the Purchaser in
                  accordance with 3.3.1 or 3.3.2, as appropriate.

                  3.3.1    Where Issued Property is embedded in or combined with
                           the Goods, risk in such Issued Property shall revert
                           to the Purchaser when such Issued Property has been
                           delivered to the Purchaser in accordance with the
                           Purchase Order.

                                 PAGE 12 OF 58
<PAGE>

                  3.3.2      Any issued Property not used by the Supplier for
                             his performance of the Purchase Order shall be
                             returned to the Purchaser within fourteen (14) days
                             of completion of the Purchase Order, in good
                             condition and at the Supplier's expense.

         3.4      Unless the Supplier advises the Purchaser to the contrary
                  within five (5) days of receiving Issued Property, such Issued
                  Property shall be deemed to have been delivered to the
                  Supplier in a satisfactory condition and be fit for the
                  purpose detailed in the Purchase Order.

         3.5      While Issued Property is at the risk of the Supplier in
                  accordance with sub-clause 3.3, the Supplier shall maintain
                  adequate insurance policies to cover such risk. On request, by
                  the Purchaser, the Supplier shall provide evidence that such
                  insurance is in effect. Where the Supplier cannot demonstrate,
                  to the reasonable satisfaction of the Purchaser, the existence
                  of such insurance, the Purchaser shall have the right to
                  effect such insurance as may be necessary. The cost of such
                  insurance shall be for the Supplier's account.

         3.6      While in the Supplier's custody, the Goods shall be clearly
                  marked as the property of the Purchaser. The Purchaser shall
                  be permitted access to the Supplier's. premises at any time to
                  inspect and/or remove Issued Property.

4.       DELIVERY

         4.1      The Goods and Services are to be supplied/performed in
                  accordance with the time scales stated on the Purchase Order
                  and consistent with the time frames and lead times of Clause 4
                  of Schedule 2 in the provisions of this agreement.

         4.2      The Goods and Services shall be delivered to or performed at
                  the address(es) stated on the Purchase Order. No shipments
                  shall be made to such address(es) without the prior
                  notification of the Purchaser.

         4.3      The Supplier shall:

                  4.3.1    package the Goods in such a manner to ensure their
                           delivery undamaged to the delivery address(es). Each
                           package shall be clearly marked with the Purchaser's
                           name, delivery address and the number of packages;
                           and

                  4.3.2    supply an advice note showing the Purchase Order
                           number, the Purchaser's part number, quantity
                           delivered, number of packages, method and route of
                           transportation to the Purchasers "Goods-In Receiving
                           Office". One copy of such advice note shall accompany
                           the Goods on delivery.

         4.4      The Supplier shall give the Purchaser such prior written
                  notice as the Purchaser may require of delivery of Goods or
                  any other items having a toxic hazard or other hazard to the
                  safety or health of persons or property. Such notice shall
                  identify the hazards and give full details of any precautions
                  to be taken by the Purchaser on receipt of such Goods or other
                  items and their appropriate storage or handling requirements.

                                 PAGE 13 OF 58
<PAGE>

         4.5      The Supplier shall notify the Purchaser immediately where any
                  event occurs that will or is likely to delay delivery of the
                  Goods or performance of Services. Such notification shall
                  include details of the Supplier's recovery plan to remedy the
                  delay. The submission of such notification shall not release
                  the Supplier from the performance of its obligations under the
                  Purchase Order.

5.       QUALITY ASSURANCE

The Supplier shall comply with the quality requirements detailed in Schedule 6
of the Agreement.

6.       REGULATORY COMPLIANCE

         6.1 To the extent applicable all Goods delivered to Purchaser or
             Affiliate-under this Agreement shall:

                  a)       be approved and listed and listed as authorized to
                           bear the CE Mark certifying the product as meeting
                           all safety and emissions standards as required for
                           the equipment;

                  b)       be verified, accepted and approved by Underwriter's
                           Laboratories ("U.L") and in compliance with Class B
                           under part 15 and other applicable limits under part
                           24 of the Regulations of the U.S. Federal
                           Communications Commission.

         6.2      To the extent applicable, all user manuals or other operator
                  manuals and/or written material supplied with the Products
                  shall contain any appropriate warning notices.

         6.3      Supplier agrees it shall ship no Goods prior to issuance of
                  the approvals set forth in sub-clause 6.1 or those identified
                  in 6.4 without the prior written consent of the Purchaser or
                  its Affiliate.

         6.4      Both parties agree to the following steps to determine if all
                  necessary approvals have been issued by the appropriate
                  agencies before committing to delivery.

                  6.4.1    Supplier shall provide to Purchaser a list of
                           regulatory/compliance approvals it has received. This
                           list will be updated on a quarterly basis.

                  6.4.2    Purchaser shall identify and provide to Supplier
                           information on the nature and scope of additional
                           regulatory/compliance approvals required to pursue an
                           opportunity within 30 days after the country specific
                           requirement appears in the 12 month forecast

         Based upon the information in sub-clause 6.4.2 the Parties will agree
         to do one of the following.

                           6.4.2.1  Supplier may agree to obtain regulatory plus
                                    government approvals within 120 days of the
                                    initial notification stated in sub-clause
                                    6.4.2. Supplier must confirm its intentions
                                    to do so within 30 days after receipt of a
                                    written request. If Supplier agrees to
                                    obtain the necessary approvals it must
                                    provide to Purchaser written verification of
                                    such approvals within the 90 day period
                                    after has stated its intentions to do so.

                                 PAGE 14 OF 58
<PAGE>

                           6.4.2.2  If Supplier declines to obtain such
                                    approvals, the Purchaser may agree to obtain
                                    the necessary approvals and Purchaser shall
                                    be compensated for its out-of-pocket costs
                                    by the Supplier after obtaining such
                                    approval.

                           6.4.2.3  If both Purchaser and Supplier decline to
                                    obtain such approvals ,the Purchaser's
                                    volume commitment shall be reduced by the
                                    dollar amount of the forecast for the
                                    affected countries.

7.       INSPECTION, ACCEPTANCE AND REJECTION

         7.1       Factory Inspection and Testing

                  7.1.1    Prior to shipment, all Goods shall be subject to
                           Factory Tests.

                  7.1.2    The Purchaser shall make a request to the Supplier to
                           attend and witness Factory Testing of Goods five (5)
                           days prior to the commencement of Factory Tests, if
                           the Purchaser so desires. If the Purchaser fails to
                           attend Factory Tests, the Supplier shall nevertheless
                           carry out Factory Tests, the results of which shall
                           accompany the Goods when delivery takes place, unless
                           otherwise agreed.

                  7.1.3    Without prejudice to the Supplier's obligations to
                           deliver Goods by the due date(s), Goods shall not be
                           shipped to the Purchaser until they have successfully
                           completed all Factory Tests.

         7.2      Inspection and Testing after Delivery

                  7.2.1    Goods shall, at the Purchaser's discretion be subject
                           to Acceptance Tests by the Purchaser after delivery.
                           On successful completion of the Acceptance Tests, the
                           Purchaser will, subject to 7.2.2, issue to the
                           Supplier a certificate of "Acceptance" which shall
                           detail the date the Acceptance Tests were
                           successfully completed or commercial service
                           whichever is first.

                  7.2.2    Where Goods do not successfully complete the
                           Acceptance Tests, the Purchaser will issue within two
                           (2) days of completion of Acceptance Tests to the
                           Supplier, a notice of rejection which shall detail
                           the faults complained of. The Supplier shall:

                           -        within a period of fifteen (15) days,
                                    immediately following notification, remedy
                                    such faults.

                  7.2.3    The Purchaser in accordance with sub-clause 7.2.2
                           shall be subject to repeat Acceptance Tests.

                  7.2.4    Where the Supplier fails to remedy faults within the
                           period detailed in 7.2.2, the Purchaser shall without
                           prejudice to any other rights or remedies, have the
                           option to either:

                                 PAGE 15 OF 58
<PAGE>

                           -        extend the period for remedy of faults by
                                    the Supplier, or

                           -        remedy the faults, or have the faults
                                    remedied by a third party and recover from
                                    the Supplier any costs and expenses recurred
                                    in so doing with prior notification from the
                                    Purchaser. Remedy of faults under this
                                    clause shall not invalidate the guarantee
                                    given under Clause 15.

                  7.2.5    In the event that neither the Supplier nor the
                           Purchaser chooses to remedy the faults, the Purchaser
                           shall be allowed to cancel that portion of the
                           Purchase Order that relates to the faulty Goods.

8.       ACCESS

         8.1      The Purchaser, and if required its Customer, shall be
                  permitted to enter the Supplier's premises, at any reasonable
                  time, for any purpose in connection with the Purchase Order,
                  provided that the Purchaser gives to the Supplier at least two
                  (2) working days prior written notice.

         8.2      The Supplier shall make best efforts possible to ensure that
                  any sub-contracts relating to the Purchase Order permit
                  similar access rights to the sub-contractor's premises for the
                  Purchaser's and, if required, its Customer's personnel.

9.       PAYMENT

         9.1      The Supplier may submit invoices for payment to the Purchaser:

                  9.1.1    for Goods based upon the following schedule

                        30% on Order
                        50% on Shipment
                        20% payment of invoice due upon the earlier of:

                           -        completion of the Acceptance Tests, or

                           -        Goods in commercial service, or

                           -        120 days after shipment where the Goods have
                                    not been rejected or returned in accordance
                                    with sub-clause 7.2.2. in Schedule 1.

                  9.1.2    for spares; on shipment; or

                  9.1.3    ten (10) days after shipment of documentation
                           conforming to the requirements of this Agreement; or

                  9.1.4    for training; on completion of the training course;
                           or

                  9.1.5    unless otherwise agreed, monthly in arrears for the
                           provision of engineering/installation services; or

                                 PAGE 16 OF 58
<PAGE>

                  9.1.6    quarterly in advance for the provision of Technical
                           Support.

                  9.1.7    for Shortfall Payments at the end of the
                           corresponding quarter as per Schedule 9.

         9.2      Payment of valid invoices is due within 45 days of date of
                  invoice by the Purchaser.

         9.3      Invoices must be submitted to the address detailed in
                  sub-clause 3.2 of Schedule 7 to the Agreement, quote the
                  Purchase Order number and detail the Goods and Services to
                  which they relate.

10.      TITLE AND RISK

         10.1     Title in Goods (excluding Software for which a license to use
                  will be granted in accordance with Clause 12) shall pass to
                  the Purchaser FOB Supplier's plant for shipments within the
                  United States and title in Goods for all other shipments shall
                  pass to the Purchaser at port of entry of the country
                  addressed on the Purchase Order.

         10.2     Risk of loss or damage to the Goods shall pass according to
                  sub-clause 10.1. Where Goods are rejected in accordance with
                  sub-clause 7.2.2, risk in the Goods shall revert back to the
                  Supplier if rejected Goods are not remedied and re-delivered
                  in accordance with sub-clause 7.2.2.

11.      LICENSES- GENERAL

         11.1     It is acknowledged by the Supplier that procurement of Goods,
                  by the Purchaser, may be for direct or indirect re-sale
                  (including installation), lease or hire to Customers anywhere
                  in the world in accordance with 11.4.

         11.2     In pursuance of 11.1, the Supplier hereby grants to the
                  Purchaser a non-exclusive, irrevocable, royalty free license
                  to:

                  11.2.1   use, lease, hire, sell (including installation) and
                           maintain Equipment anywhere in the world; and

                  11.2.2   use, copy and reproduce in whole or in part any
                           literature whatever relating to Goods for the
                           purposes of such lease, hire, maintenance and sale of
                           Goods anywhere in the world.

         11.3     The Supplier warrants that it has the right to grant the
                  licenses detailed under Clause 11.2.

         11.4     Purchaser shall have sole responsibility for ensuring that it
                  has obtained all necessary approvals and licenses from the
                  relevant export authorities prior to the delivery date for any
                  Purchase Order for delivery outside the United States, or
                  before re-exporting any Goods outside the United States. The
                  Supplier shall provide the information to assist the Purchaser
                  in obtaining necessary licenses for re-exportation of Goods to
                  any ultimate destination outside of the United States.

                                 PAGE 17 OF 58
<PAGE>

                  Further, the supplier shall provide such assistance as the
                  Purchaser may reasonably require to obtain import duty
                  relief for onward sale of Goods.

         11.5     The Supplier undertakes, without delay, to notify the
                  Purchaser of any export restrictions that arise that may
                  affect the Purchaser's ability to maintain or offer for sale,
                  lease or hire Goods in a particular country. The Supplier
                  shall provide written notification to the Purchaser
                  immediately after cessation of such export restrictions.

12.      SOFTWARE LICENSE RIGHTS

         12.1     Where Software is supplied under the Purchase Order whether
                  incorporated in any Equipment or otherwise, then without
                  prejudice to any other licenses or rights granted to the
                  Purchaser under the Purchase Order, the Supplier hereby grants
                  to the Purchaser a non-exclusive, irrevocable, royalty free
                  license to use, sell, lease, hire, install repair, maintain
                  and/or dispose of the Software anywhere in the world. Such
                  license shall include the right for the Purchaser to
                  sub-license the Software directly or indirectly on
                  substantially the same terms to Customers and the right to:

                  12.1.1   use the Software for the purpose of training,
                           operating networks, maintaining and supporting
                           Customer's telecommunications networks and making
                           copies for back-up purposes;

                  12.1.2   modify documentation provided to the Purchaser and
                           distribute such modified documentation directly or
                           indirectly to Customer's.

         12.2     The Supplier confirms that it has full right and title to
                  grant to the Purchaser the Software license rights included
                  under this Clause 12.

         12.3     The provisions of this Clause 12 shall survive the expiry or
                  termination of the Purchase Order..

13.      BADGING

         13.1     The Purchaser shall sell or sub-license Goods under the
                  Northern Telecom name or for that of its Customer(s), with
                  prior written consent of the Supplier, which is not to be
                  unreasonably withheld. If requested, by the Purchaser, the
                  Supplier shall supply Goods complete with the appropriate logo
                  affixed to the Goods.

         13.2     Where the Purchaser exercises its rights under sub-clause
                  13.1, the Purchaser shall provide details of the logo and
                  positioning not later than three (3) weeks prior to the due
                  date for delivery.

14.      Variations

         14.1     The Purchaser shall make every effort to place Purchase Orders
                  in accord with this agreement. In the event of unusual
                  circumstances, the Purchaser may request the Supplier to make
                  modifications to the Purchase Order. The Supplier shall make
                  best efforts to furnish details of the effect such Variation
                  will have on the Goods and Services within ten (10) days of
                  receipt of the Purchaser's request or such other period as may
                  be agreed.

                                 PAGE 18 OF 58
<PAGE>

         14.2     Where the Supplier shows that a Variation in accordance with
                  sub-clause 14. 1 involves a change in the cost or time scales
                  for the Goods and/or Services, the Supplier shall use best
                  efforts to keep the change to the time scales and extra costs
                  or savings arising from the Variation reasonable. The
                  provisions of Schedule 2 of the Agreement sub-clause 3.2 shall
                  apply.

         14.3     The Supplier shall not vary the Goods and Services to be
                  supplied under the Purchase Order in any respect unless
                  instructed in writing to do so by the Purchaser and so long as
                  the variations still conform with and are included in this
                  Agreement.

15.      GUARANTEE

         15.1     If during a period of sixteen (16) months from shipment
                  acceptance or during the "Guarantee Period", the Supplier is
                  notified of a material defect in the Goods that is due to
                  faulty design, manufacture, materials, workmanship, inadequate
                  performance against Specification or the negligence of the
                  Supplier, the Supplier shall, at the Supplier's option,
                  correct, modify, repair or replace the Goods at the Supplier's
                  expense. Such correction, modification, repair or replacement
                  shall be carried out:

                  -        for Equipment; within a period of thirty (30) days of
                           return of the Equipment to the Supplier's works; and

                  -        for Software; within the time scales detailed in
                           Schedule 4, Clause 4.2, appropriate to the category
                           of defect; and

                  -        the parties agree to make their best effort to work
                           together to reduce the above lead time in the future.

         15.2     All Goods shall be marked (in a manner to be agreed by the
                  Purchaser) with a date code which corresponds to the date that
                  the Equipment was finished being Factory Tested at the
                  Supplier's works.

         15.3     All Goods corrected, modified, repaired or replaced in
                  accordance with sub-clause 15.1 shall from the date of
                  shipment of the repaid Equipment to the Customer site, be
                  re-warranted for the remainder of the original Guarantee
                  Period or for a period of seven (7) calendar months, whichever
                  is the longer.

         15.4     If any defect notified in accordance with sub-clause 15.1 is
                  not remedied within the period specified, the Purchaser may,
                  without prejudice to its other rights and remedies in respect
                  of the Supplier's failure to remedy such defect, proceed to do
                  the work at the Supplier's risk and expense with the
                  Supplier's prior approval. Remedy of defects under this
                  sub-clause 15.4 shall not invalidate the guarantee given under
                  sub-clause 15. 1.

         15.5     Equipment Deficiency and Product Change Notices

                  Supplier may, at any time, make Class A, Class B or Class D
                  product changes to the Equipment or modify the drawings and
                  specifications relating thereto (hereinafter referred to as
                  "Product Change"), provided that any such Product Change, does
                  not affect form, fit or function of the

                                 PAGE 19 OF 58

<PAGE>

                  Equipment or the interchangeability of the Equipment with
                  other Equipment, or with spare parts, and that Supplier
                  notifies the Purchaser in writing thereof as soon as
                  practicable. In the event any Product Change affect form, fit
                  or function or interchangeability of the Products, Supplier
                  shall notify the Purchaser in writing thereof prior to any
                  planned changes 120 days in advance, except Class D Changes -
                  non Customer Affecting, and if such change adversely affects
                  Purchaser or its Customers, Purchaser may reject such Product
                  Change. In the event the Purchaser rejects the planned change
                  and so notifies Supplier within ten (10) days and Supplier
                  fails to reach agreement thereon, the Purchaser shall have the
                  right to terminate any and all orders, in whole or in part,
                  for the Equipment affected by such change. Notwithstanding any
                  notice requirement above to the contrary, Supplier shall
                  immediately notify the Purchaser when it determines that a
                  Class A Product Change (as defined hereinafter) shall be made.
                  Supplier shall be authorized to make Class A Product Changes
                  as soon as practical.

                  15.5.1    Class A Product Change

                           Class A Product Changes are changes required to
                           correct an Equipment deficiency (e.g., safety or fire
                           hazard, electrically or mechanically inoperative,
                           unsatisfactory operation, design defects, Equipment
                           does not operate as specified). If after at least 750
                           units of a board or equipment are in service, the
                           monthly board or equipment failure rate (Number of
                           board or equipment returned within a month/Total
                           Number of board or equipment in service), as
                           specified by the Purchaser's trouble tickets,
                           averages higher than 2% over a three (3) month
                           period, a Class A Product Change will be required.
                           The number of board or equipment failures shall not
                           include the number of "No Fault Founds" or any
                           failures due to improper operation, handling or
                           maintenance as described in the Supplier's relevant
                           Equipment documentation. Class A Product Changes
                           require immediate action by Supplier to correct all
                           affected Equipment, whether in the hands of Supplier
                           or the Purchaser or their Customers including spare
                           Products. In some cases, however, it may be necessary
                           to make a change to only a limited number of a
                           particular type of Equipment. (This occurs when it is
                           necessary to correct a condition that occurs only in
                           certain Equipment combinations or with the use of
                           certain options). Such conditions shall be described
                           in the Product Change Notice.

                           Supplier shall, no later than thirty (30) days from
                           the date of the notification of a Class A Product
                           Change, provide a schedule, acceptable to the
                           Purchaser for promptly implementing, at Supplier's
                           expense, such changes with respect to the Equipment
                           in the Purchaser's or their Customer's possession.
                           Such implementation shall include the
                           de-installation, if necessary, of existing Equipment
                           and the engineering and installation of replacement
                           or modified Equipment or any additional materials.

                           The Guaranty period for redesigned Equipment will be
                           twelve (12) calendar months from the date of shipment
                           and for repaired Equipment seven (7) calendar months
                           from date of shipment.

                  15.5.2   Class B Product Change

                           Class B Product Changes ere changes are made to
                           incorporate improvements in design resulting in
                           better operation, improved testing, better
                           maintenance, longer life, service

                                 PAGE 20 OF 58

<PAGE>

                           improvements, cost reductions, new features, and the
                           like.

                           All Equipment shipped to the Purchaser after the
                           effective date of any Class B Product Change shall
                           incorporate such change. Any Equipment shipped to the
                           Purchaser prior to such date may be modified by the
                           Purchaser at its option and expense.

                           No Class B changes shall effect interoperability of
                           the Equipment.

                  15.5.3    Class D Product Change

                           Class D Product Changes are design improvements,
                           component changes, or other minor improvements not
                           sufficiently significant as to require a Class B
                           classification. Class D Product Changes are also used
                           when a change is required to facilitate manufacture
                           or to effect a cost reduction not sufficiently
                           important to justify a Class B classification.

                           No Class D changes shall effect the interoperability
                           of the Equipment.

                  15.5.4   Notices

                           Supplier shall furnish monthly status reports to the
                           Purchaser for all Class A Product Changes of which
                           Supplier has notified the Purchaser. This report
                           shall contain the following information:

                           -        Product Change Notice Number

                           -        Identity of the Equipment

                           -        Model or part number and issue

                           -        Date Product Change Notice issued

                           -        Equipment ship date

                           -        Installation or application responsibility

                           -        Locations at which change is to be made (to
                                    be supplied by the Purchaser)

                           -        Date completed, by location - Changes on
                                    hold at any location

                           Supplier shall furnish in accordance with the
                           "Notices" sub-clause a quarterly report listing all
                           Product Change Notices released during the previous
                           twelve (12) months. This report will contain the
                           following information: (a) Product Change Notice
                           Number, (b) Issue Date of Change, (c) Drawing Number,
                           (d) Change Classification, and (e) Modification
                           Expiration Date. Supplier will provide the Purchaser
                           a copy of all change notices as soon as they become
                           available.

                           Notwithstanding any notice requirements to the
                           contrary elsewhere in this Agreement, all Class A
                           Product Change Notices shall be provided, at no
                           charge, and forwarded in accordance with the
                           sub-clause titled "Notices". Product Change Notices
                           shall contain all the information set forth in
                           Notices. If Supplier cancels a Product Change Notice,
                           Supplier must provide notification in accordance with
                           clause tide "Notices" hereto and state the reason for
                           cancellation and what action, if any, is to be taken
                           in locations where the change may already have been
                           implemented.

                                 PAGE 21 OF 58

<PAGE>

                           Supplier shall determine the classification per the
                           requirements of Bellcore Technical Requirement
                           Document TR-OPT-000209 or any successor document
                           agreed to between the Parties of any proposed Product
                           Change. If the Purchaser disagrees with any
                           classification assigned by Supplier, the Purchaser
                           shall have the right to challenge such
                           classification, and Supplier shall, in good faith,
                           re-evaluate its classification. In the event that the
                           Purchaser and Supplier fail to reach agreement on any
                           such classification, then the Purchaser shall have
                           the right to terminate any or all Orders, in whole or
                           in part, for Equipment affected by such Product
                           Change without penalty or obligation of any kind
                           until this Agreement is reached.

         15.6     The Supplier shall provide, Technical Support for the Goods as
                  detailed in Clause 4 of Schedule 4 to the Agreement,
                  throughout the Guarantee Period.

         15.7     Guarantee Period Extension

                  The Purchaser may elect, at any time during the Guarantee
                  Period, to extend the Guarantee Period for such further period
                  or periods as detailed in Schedule 2. The price to paid by the
                  Purchaser for extending the Guarantee Period shall be as
                  detailed in Schedule 2.

         15.8     EXCEPT FOR THE WARRANTIES SET FORTH IN THIS CLAUSE 15,
                  SUPPLIER HEREBY DISCLAIMS ALL OTHER WARRANTIES, WHETHER
                  EXPRESSED, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT
                  LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY,
                  NONINFRINGEMENT OR FITNESS OR A PARTICULAR PURPOSE.

         15.9     The provisions of sub-clauses 15.1-15.8 shall survive
                  termination of the Agreement and/or Purchase Order howsoever
                  caused.

         15.10    The Supplier represents and warrants that the Software
                  contains no authorization strings, time limiting codes or any
                  other limiting codes that will disable the operation of the
                  Software.

         15.11    The Supplier represents and warrants that, to the best of
                  Supplier's knowledge, the Software contains no computer
                  viruses or other contaminates programmed or installed in the
                  Software by Supplier, including but not limited to, any code
                  or instructions that may be used to damage, disable, or
                  compromise the security of any Purchaser products, Customer
                  networks or Purchaser computer systems or networks.

         15.121   The Supplier represents and warrants that the Software shall
                  (i) process date and time related data without causing any
                  processing interruptions, abnormal terminations, or changes in
                  performance characteristics, and, (ii) shall process and
                  manipulate all date and time related functions correctly.
                  Without limiting the generality of the foregoing, all Software
                  shall:

                           -   correctly handle date and time related data
                               before, during and after January 1, 2000,
                               including but not limited to accepting date and
                               time input, output, and performing ongoing
                               operations on dates and times and portions of
                               dates and times including, but not limited to,
                               calculating, comparing and sequencing of dates
                               and times (in both forward and backward
                               operations spanning century boundaries).

                                 PAGE 22 OF 58

<PAGE>

         15.13    The supplier shall immediately notify the Purchaser of any
                  Software that is not in compliance with sub-clauses 15.10,
                  15.11, or 15.12 and shall correct such Software as set forth
                  in sub-clause 15.1.

16.      DELAYS

         16.1     Time shall be of the essence for the performance of the
                  Supplier's obligations under the Purchase Order, and the
                  Supplier shall make good faith efforts to meet dates specified
                  in the Purchase Order.

         16.2     In the event that the Supplier fails to deliver Goods, the
                  Purchaser shall not be obligated to pay for any shortfalls and
                  shall be given relief against their commitments as described
                  in Schedule 9.

17.      TERMINATION

         Without prejudice to its other rights, either party shall have the
         right forthwith to terminate a Purchase Order, in whole or in part, and
         to claim for any resulting LOSSES or expenses if the other party:

         -        commits a breach of the Purchase Order and fails to remedy
                  the breach within 60 days of written notice from the
                  non-defaulting party indicating: (i) the nature and basis of
                  such default with reference to the applicable provisions of
                  this Agreement, and (ii) the non-defaulting party's intention
                  to terminate the Purchase Order under this Clause 17 if such
                  default continues; or

         -        commits any act of bankruptcy; or compounds with its
                  creditors; or a petition or receiving order in bankruptcy is
                  presented or made against the other party, or a petition for
                  an administration order is presented in relation to the other
                  party or a resolution or petition to wind up the other party
                  (otherwise than for a legal reconstruction or amalgamation) or
                  a receiver or administrative receiver is appointed; and such
                  act or petition is not cured, dismissed, or withdrawn within
                  60 days thereafter, or

         -        ceases to carry on business.

18.      CANCELLATION

                  The Purchaser shall have the right to cancel any Purchase
                  Order for which the Purchaser provides to the Supplier written
                  notice of such a cancellation at least 90 days prior to the
                  requested delivery date in such Purchase Order. In addition,
                  the Purchaser shall have the right to reschedule any Purchase
                  Order to delay the delivery date by no more than 60 days after
                  the requested delivery date in such Purchase Order, provided
                  that the Purchaser provides to the Supplier written notice of
                  such rescheduling at least 45 days prior to the requested
                  delivery date in such Purchase Order. Any Purchase Order may
                  only be rescheduled once, and once rescheduled may not be
                  cancelled. Except as set forth in this Clause 18, the
                  Purchaser shall have no right to cancel or reschedule any
                  Purchase Order.

                                 PAGE 23 OF 58

<PAGE>

         19.1     The Supplier shall indemnify and shall keep fully indemnified
                  the Purchaser against all actions, claims, proceedings,
                  damages, costs and expenses arising from any claim of
                  infringement, anywhere in the world, of any trade secret,
                  trademark, service mark, copyright, or patent arising solely
                  by reason of the Purchasers use, possession, re-sale, hire or
                  lease of Goods as provided by Supplier, as expressly
                  authorized in the Agreement. Notwithstanding the foregoing,
                  supplier assumes no liability for infringement claims related
                  to (i) the combination of Goods with other products not
                  provided by Supplier, if such infringement would have been
                  avoided by the use of such Goods alone, (ii) modification of
                  Goods after delivery by Supplier, or (iii) failure by
                  Purchaser, its employees, and agents after it becomes aware of
                  infringement to take all reasonable actions to prevent or
                  mitigate losses, damages, costs or expenses. Supplier shall
                  not be obligated to pay any liability, costs, or expenses
                  until finally adjudicated or settled without right of further
                  appeal.

         19.2     Supplier's obligation to indemnify Purchaser under this Clause
                  19 shall be subject to Purchaser providing Supplier: (i)
                  prompt notice of the claim giving rise to the indemnity, (ii)
                  sole control and authority regarding the defense and
                  settlement of such claim; and (iii) all information and
                  assistance reasonably requested the Supplier in connection
                  with the defense and/or settlement of such claim. The Parties
                  shall immediately on becoming aware notify the other promptly
                  in writing of any infringement or alleged infringement
                  referred to in 19.1.

         19.3     In the event of infringement as set forth in sub-clause 19.1,
                  the Supplier shall, at its own option and expense:

                  19.3.1   secure a license, the Supplier being responsible for
                           the payment of any and all royalty fees due or
                           becoming due, allowing the Purchaser use of the
                           infringing Goods and Services in and to exercise its
                           other rights granted under the Purchase Order and as
                           set out in the Agreement in respect of the Goods and
                           Services, provided that Purchaser agrees to cooperate
                           with Supplier and use all reasonable afforts to
                           assist Supplier; or

                  19.3.2   modify or replace the Goods and Services to avoid the
                           claim of infringement and any injunction or court
                           order, provided that such modification or replacement
                           does not affect materially performance of the Goods
                           and Services; or

                  19.3.3   if neither of the remedies in sub-clause 19.3.1 or
                           19.3.2 are reasonably practicable in Supplier's
                           reasonable judgement, Supplier may terminate this
                           Agreement and refund to Purchase the amounts paid for
                           the infringing Goods which cannot be used or sold due
                           to such infringement, depreciated on a five year
                           straight-line basis.

         19.4     The copyright and all other intellectual property rights in
                  all documents, drawings and information supplied by the
                  Purchaser in connection with this Purchase Order shall remain
                  vested in the Purchaser. Such documents, drawings and
                  information shall not be copied, disclosed or used except in
                  the performance of Supplier's obligations and exercise of its
                  rights pursuant to this Agreement and other agreements between
                  Supplier and Purchaser without the prior written consent of
                  the Purchaser.

                                 PAGE 24 OF 58

<PAGE>

         19.5     THE FOREGOING CLAUSE 19 STATES THE SOLE OBLIGATIONS OF
                  SUPPLIER AND THE SOLE AND EXCLUSIVE REMEDY OF PURCHASER FOR
                  ANY ACTUAL OR ALLEGED INTELLECTUAL PROPERTY INFRINGEMENT.

         19.6     EXCEPT FOR INDEMNIFICATION HEREUNDER FOR WILLFUL TRADE SECRET
                  MISAPPROPRIATION OR WILLFUL COPYRIGHT INFRINGEMENT, IN NO
                  EVENT SHALL SUPPLIER'S LIABILITY AND OBLIGATION UNDER THIS
                  CLAUSE 19 EXCEED THE NET AMOUNTS PAID BY PURCHASER TO SUPPLIER
                  FOR THE INFRINGING SYSTEMS GIVING RISE TO SUCH LIABILITY.

20.      INDEMNIFICATION AND INSURANCE

         20.1     Each party (the "Indemnifying Party") shall indemnify and save
                  harmless the other party (the "Indemnified Party") from any
                  liability or claim (including, without limitation, the costs
                  and reasonable attorney's fees in connection therewith) that
                  may be made by a third party for injury, including death, to
                  persons or damage to property arising directly out of the
                  Indemnifying Party's negligent acts or omissions in connection
                  with such Indemnifying Party's performance of its obligations
                  or exercise of its rights under this Agreement provided that
                  the indemnified Party has no contributory fault in connection
                  with such liability or claim.

         20.2     Without thereby limiting its responsibilities under the
                  Purchase Order Supplier shall maintain during its performance
                  under this Agreement General Liability Insurance, including
                  contractual, products liability and broad form vendors'
                  property damage endorsement with the limits of either
                  $5,000,000 combined single limit per occurrence for bodily
                  injury and property damage or $3,000,000 bodily injury per
                  occurrence and $2,000,000 property damage per occurrence.
                  Supplier must provide property insurance to cover all
                  consigned Purchaser material on Supplier's premises during the
                  term of the Agreement.

         20.3     The Supplier shall supply to the Purchaser written evidence
                  that such cover is in force for the required period. On
                  receipt of the Purchaser's request, the Supplier shall provide
                  evidence that such insurance is in force. Where the Supplier
                  cannot demonstrate, to the reasonable satisfaction of the
                  Purchaser the existence of adequate insurance, the Purchaser
                  shall have the right to effect such insurance as may be
                  necessary. The cost of such insurance shall be for the
                  Supplier's account.

21.      CONFIDENTIALITY

         The provisions of Clause 7 of the Agreement shall similarly apply to
         the Purchase Order(s).

22.      FORCE MAJEURE

         Except to obligations to pay money, (other than with respect to a
         Purchase Order which is itself subject to an event of force majeure
         declared by the Supplier), neither Party shall be liable for any breach
         of the Purchase Order owing to any of the following causes, or any
         similar causes, anywhere in the world, to the extent beyond its
         reasonable control: Act of God, fire, industrial action or lock-outs
         (except for industrial

                                 PAGE 25 OF 58

<PAGE>

         action or lock-outs by the Supplier's employees), the act or omission
         of Government, war, military operations or riot.

23.      PROPRIETARY NOTICES

         Purchaser agrees that all Goods and accompanying documentation shall
         include re-productions of the copyright notices and other proprietary
         legends of the supplier and its vendors. Purchaser shall not remove,
         efface or obscure any such notice or legends without approval of
         Supplier.

24.      RECOVERY OF SUMS DUE

         Whenever a sum of money due to one party from the other party, in
         relation to the Purchase Order or otherwise, is not paid by the due
         date, it may be deducted from any sum then due, or which at any time
         thereafter may become due to the other party under the Purchase Order
         or any other contract between the parties. Any sums due and not
         recovered by such deductions may be recovered as a debt.

25.      GENERAL

         25.1     The invalidity or unenforceability for any reason of any
                  provision of the Purchase Order shall not prejudice or affect
                  the validity or enforceability of its other provisions.

         25.2     The headings to these clauses are for reference only and shall
                  not affect their interpretation.

         25.3     Any notice to be given under the Purchase Order must be in
                  writing and may be delivered by hand or sent by prepaid post
                  to the "authorized representative" at the address given in
                  Schedule 7.

         25.4     No claim or right arising out of breach of the Purchase Order
                  by either party may be discharged in whole or in part by any
                  waiver or renunciation of the claim or right unless such
                  waiver or renunciation is in writing, signed by the other
                  party.

         25.5     Neither party may novate or assign this Purchase Order or any
                  of its rights benefits or obligations arising thereunder
                  without the prior written consent of the other party, except
                  that either party may assign and delegate all of its rights
                  and obligations hereunder in conjunction with a sale of all or
                  substantially all of its business or assets to which this
                  Purchase Order relates.

         25.6     The settlement of any dispute shall be done as per article 10
                  of the Agreement.

         25.7     Supplier represents that it has the rights which herein are
                  granted to Purchaser to sell the Goods for resale throughout
                  the world (subject to any applicable export control
                  restrictions), and that Supplier has taken appropriate action
                  with any of its existing distributors of similar goods to
                  remove any restrictions which would impede the granting of
                  these rights to Purchaser.

                                 PAGE 26 OF 58

<PAGE>

SCHEDULE 2

PRICES AND PRODUCT DESCRIPTION

1.       The prices detailed hereunder are firm and fixed for the calendar year
         in which this Agreement commenced (the "Initial Period"). Sixty (60)
         days prior to the expiration of the Initial Period, and each subsequent
         twelve (12) month period the Parties shall review and agree upon the
         prices that shall apply to Goods and Services for the next twelve (12)
         month period. The prices listed below include warranty during the
         Guarantee Period and technical support for 12 months.

         The prices listed below are subject to amendments according to the
clauses below:

         -        As for the BSC and the NSS, the prices are applicable only for
                  a period of three months following the Signature of this
                  Agreement As soon as the configurations and functions of the
                  BSC and NSS are clarified by the Supplier, the prices of the
                  BSC and of the NSS will be adjusted for price coherence
                  between the functions provided by the BSC and the NSS and
                  between this equipment and the NSS/BSC functions integrated in
                  the Combo. This adjustment should not impact the price of the
                  Combo nor the aggregate prices.

         -        In the event that the market prices have substantially
                  decreased, the Purchaser may request good faith efforts from
                  the Supplier to re-negotiate prices accordingly. Such price
                  reduction will become effective for all following deliveries
                  to the Purchaser.

         -        The Purchaser will discuss with the Supplier any single
                  opportunity for the Supplier's Goods that is greater than
                  twenty (20) million (U.S.) dollars. In the event that the
                  single opportunity pricing is granted to the Purchaser by the
                  Supplier, it will not impact the OEM pricing at that time.

         -        For each of the calendar years, the Purchaser and Supplier
                  will use their best efforts to agree upon and execute an
                  amendment to this Agreement that sets forth the prices and
                  volume discounts applicable for such a calendar year. The
                  Supplier guarantees a minimum of 5% decrease of price for the
                  Products from one calendar year to the next.

         -        The prices listed will be subject to a volume discount
                  according to the table below:

<TABLE>
<CAPTION>
                    ------------------------------- -----------------------------
                    NUMBER OF TRX'S                 DISCOUNT*
                    ------------------------------- -----------------------------
<S>                                                 <C>
                    1 to 999                        0%
                    ------------------------------- -----------------------------
                    1000 to 1499                    2%
                    ------------------------------- -----------------------------
                    1500 to 1999                    4%
                    ------------------------------- -----------------------------
                    2000 and over                   10%
                    ------------------------------- -----------------------------
</TABLE>

         *These volume discounts do not apply to the WAVEView OMC-200 or its
         associated software

         -        The Supplier represents to the Purchaser that the prices
                  listed herein for Goods and Services are no higher than those
                  charged by the Supplier to other parties who purchase similar
                  goods for resale (excluding exceptions for flexibility in
                  markets and for Customers Purchaser is not pursuing, and other
                  special circumstances on an agreed upon individual basis). At
                  the request of the Purchaser, Supplier shall internally review
                  its compliance with this requirement on an annual calendar
                  year basis and shall credit any overcharge to the Purchaser in
                  accordance with Schedule 1, Clause 24. In

                               PAGE 27 OF 58
<PAGE>

any event, the Purchaser shall receive a minimum sixty-five (65) %
discount off the Supplier then current list prices.

1.1      PRICES FOR GOODS

<TABLE>
<CAPTION>
-------------------------------------------------------------- -------------------------------- ----------------------------------
DESCRIPTION OF GOODS                                           PART NUMBER                                            PRICE (US$)
-------------------------------------------------------------- -------------------------------- ----------------------------------
<S>                                                            <C>                              <C>
WAVEXpress 1-TRX BTS (900MHz)                                  M5120N                                                      10,500
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 2-'TRX BTS (900MHz)                                 M5220N                                                      15,750
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 3-TRX BTS (900MHz)                                  M5320N                                                      23,625
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 1-TRX BTS (1800MHz)                                 M5122N                                                      10,500
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 2-TRX BTS (1800MHz)                                 M5222N                                                      15,750
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 3-TRX BTS (1800MHz)                                 M5322N                                                      23,625
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 1-TRX BTS (1900MHz)                                 N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 2-TRX BTS (1900MHz)                                 N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress 3-TRX BTS (1900MHz)                                 N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 4 Watt(900 MHz)                                      M640154N                                                     4,200
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 8 Watt(900 MHz)                                      M640157N                                                     4,200
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 16 Watt(900 MHz)                                     M640158N                                                     8,925
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 4 Watt (1800 MHz)                                    M648154N                                                     4,200
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 8 Watt (1800 MHz)                                    M648157N                                                     4,200
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 16 Watt (1800 MHz)                                   M648158N                                                     8,925
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 4 Watt (1900 MHz)                                    NIA                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 8 Watt (1900 MHz)                                    N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
TurboWAVE 6 Watt (1900 MHz)                                    N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXpress BSC-30                                              M5030N                                                      24,850
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 1-TRX (900 MHz)                                          M5131N                                                      14,335
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 2-TRX (900 MHz)                                          M5132N                                                      19,590
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 1-TRX (1800 MHz)                                         M5831N                                                      14,335
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 1-TRX (1800 MHz)                                         M5832N                                                      19,590
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 1-TRX (1900 MHz)                                         N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo 2-TRX (1900 MHz)                                         N/A                                                            N/A
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXchange NSS                                                M5060N                                                      40,645
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEView,OMC-200                                               M8050SN                                                     23,670
-------------------------------------------------------------- -------------------------------- ----------------------------------

-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo S/W - 1 TRX                                              S500200N                                                     7,350
-------------------------------------------------------------- -------------------------------- ----------------------------------
Combo S/W - 2 TRX                                              S500300N                                                    13,125
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXchange NSS S/W- Base                                      S500400N                                                    11,025
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEXchange NSS S/W- Base                                      S500500N                                                     3,675
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEView,OMC-200 S/W - Base                                    S500600N                                                    11,025
-------------------------------------------------------------- -------------------------------- ----------------------------------
WAVEView,OMC-200 S/W - per TRX (not to exceed $70k/ OMC)       S500700N                                                       735
-------------------------------------------------------------- -------------------------------- ----------------------------------
</TABLE>

                               PAGE 28 OF 58

<PAGE>

         1.2      PRICES FOR ENGINEERING SERVICES

                  EMERGENCY CALL OUT SERVICES *

                   BASE RATES

<TABLE>
<CAPTION>
                   EMERGENCY CALL OUT             Standard        Weeknights         Nights/Weekends       Sundays/Holidays
                                                  8am-5pm         5pm-11pm           11pm-8am

<S>                                              <C>              <C>                <C>                   <C>
                   Junior Engineer               $ 90             $110                 $125                    $150

                   Engineer                      $110             $130                 $150                    $185

                   Sr. Engineer/Spec.            $150             $180                 $185                    $250

                   Project Manager               $190             $225                 $250                    $315
</TABLE>

                  Purchaser will be offered a discount of 30% from these rates
                  for these rates during the first year of the agreement. These
                  rates are subject to a six month adjustment based upon good
                  faith negotiations, and an agreed to, price escalation
                  table(s).

                  *Rates do not include transportation, nor a Per Diem for food
                  and lodging, nor out-of-pocket expenses for personnel
                  rendering such services.

         1.3      PRICES FOR SPARES

<TABLE>
<CAPTION>
         --------------------------------- ------------------------------------------------------ --------------------------------
         Part Number                       Description of Field Replaceable Unit                               Spares Price (US$)
         --------------------------------- ------------------------------------------------------ --------------------------------
<S>                                        <C>                                                    <C>
          M340220                           Clock, 13MHz                                                                    1,370
         --------------------------------- ------------------------------------------------------ --------------------------------
          M340014                           E-l, Long Haul, 2 Port                                                          5,670
         --------------------------------- ------------------------------------------------------ --------------------------------
          M340098                           E-1 with 2 TRAUS                                                                8,400
         --------------------------------- ------------------------------------------------------ --------------------------------
          M340121                           IWP                                                                             3,970
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640034                           Power supply 350W, Hi24, 115v AC                                                1,370
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640035                           Power supply 350W, Hi24, 230v AC                                                1,370
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640026                           Power supply 350W, Hi24, -48V DC                                                1,370
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640027                           Power Supply 50A, 115V AC                                                       1,660
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640028                           Power Supply 50A, 230V AC                                                       1,660
         --------------------------------- ------------------------------------------------------ --------------------------------
          M340063                           RF Distribution 900 MHz                                                         3,150
         --------------------------------- ------------------------------------------------------ --------------------------------
          M340088                           RF Distribution 1800 MHz                                                        3,150
         --------------------------------- ------------------------------------------------------ --------------------------------
          N/A                               RF Distribution 1900 MHz                                                          N/A
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640116                           TRX 900 MHz                                                                     7,875
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640117                           TRX 1800 MHz                                                                    7,875
         --------------------------------- ------------------------------------------------------ --------------------------------
          N/A                               TRX 1900 MHz                                                                      N/A
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640025                           Fan, 12V Power Supply                                                             450
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640021                           Cable kit, full set, indoor                                                       450
         --------------------------------- ------------------------------------------------------ --------------------------------
          M640048                           WAVEXpress Chassis                                                              1,850
         --------------------------------- ------------------------------------------------------ --------------------------------
</TABLE>

                                 PAGE 29 OF 58
<PAGE>

         1.4      Prices for Post Guarantee Repair Service

<TABLE>
<CAPTION>
         --------------------------------- ------------------------------------------------------ ----------------------------------
          Part Number                       Description of Field Replaceable Unit                                Repair Price (US$)
         --------------------------------- ------------------------------------------------------ ----------------------------------
<S>                                        <C>                                                    <C>
          M340220                           Clock, 13MHz                                                                        600
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M340014                           E-l, Long Haul, 2 Port                                                            1,900
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M340098                           E-1 with 2 TRAUS                                                                  3,200
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M340121                           IWP                                                                               1,300
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640034                           Power supply 350W, Hi24, 115v AC                                                    450
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640035                           Power supply 350W, Hi24, 230v AC                                                    450
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640026                           Power supply 350W, Hi24, -48V DC                                                    450
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640027                           Power Supply 50A, 115V AC                                                           500
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640028                           Power Supply 50A, 230V AC                                                           500
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M340063                           RF Distribution 900 MHz                                                             350
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M340088                           RF Distribution 1800 MHz                                                            350
         --------------------------------- ------------------------------------------------------ ----------------------------------
          N/A                               RF Distribution 1900 MHz                                                            N/A
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640116                           TRX 900 MHz                                                                       2,500
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640117                           TRX 1800 MHz                                                                      2,500
         --------------------------------- ------------------------------------------------------ ----------------------------------
          N/A                               TRX 1900 MHz                                                                        N/A
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640025                           Fan, 12V Power Supply                                                               N/A
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640021                           Cable kit, full set, indoor                                                         N/A
         --------------------------------- ------------------------------------------------------ ----------------------------------
          M640048                           WAVEXpress Chassis                                                                  N/A
         --------------------------------- ------------------------------------------------------ ----------------------------------
</TABLE>

         1.5      PRICES FOR TECHNICAL SUPPORT

                  Telephone Support and Software Updates shall include third
                  level support from the Supplier's Technical Support Center in
                  Redwood City, CA and shall include those items identified in
                  Schedule 4. Prices are calculated at the beginning of each
                  quarter based upon the cumulative volume of Goods shipped
                  during the term of this agreement except that the purchaser
                  shall have, no obligation to pay for support for Goods shipped
                  in the 12 months prior to the beginning of the current
                  quarter. Payment for such services are provided in Schedule 1,
                  Clause 9.

                  1.5.1    The rate will be 2.28% of the Price of the Goods per
                           year measured on a quarterly basis

                  1.5.2    The Purchaser will make available for a period of not
                           less than 12 calendar months following Agreement
                           signing, 2 or 3 senior technical Level 3 (Product
                           Support) specialists. At least one of these
                           specialists will be NSS trained.

                  1.5.3    Supplier will make available Product Support
                           Specialists on an emergency call basis and use best
                           efforts to meet Purchasers requirements.

                  1.5.4    Purchaser will provide 6 person- months of assistance
                           during the first four month period following the
                           signing of this Agreement in the area of OSS and NSS
                           curriculum development at locations to be determined
                           by both parties in an effort to accelerate the
                           availability of the courses and familiarity of the
                           instructors with the Supplier's product.

                                 PAGE 30 OF 58
<PAGE>

         1.6      PRICES FOR TRAINING

                  Customer Training will be provided if available resources
                  permits as it is expected that Purchaser will train it own
                  personnel and personnel of its Customers
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
PART NO.         NAME OF TRAINING COURSE                                                 CHARGE IN U.S.$           DURATION (DAYS)
<S>              <C>                                                                     <C>                       <C>
-----------------------------------------------------------------------------------------------------------------------------------
T100             GSM Overview                                                                       $400                  1
-----------------------------------------------------------------------------------------------------------------------------------
T200             Product Overview                                                                   $200               1/2
-----------------------------------------------------------------------------------------------------------------------------------
T300             OMC-R system Administration                                                        $800                  2
-----------------------------------------------------------------------------------------------------------------------------------
T400             OMC-R Network Operations                                                          $1200                  3
-----------------------------------------------------------------------------------------------------------------------------------
T500             BSS Operations & Maintenance                                                      $1200                  3
-----------------------------------------------------------------------------------------------------------------------------------
T600             BSS Installation & Commissioning                                                   $800                  2
-----------------------------------------------------------------------------------------------------------------------------------
T700             OMC-s System Administration                                                        $800                  2
-----------------------------------------------------------------------------------------------------------------------------------
T800             OMC Network Operations                                                            $1200                  3
-----------------------------------------------------------------------------------------------------------------------------------
T900             WAVEXchange Operations & Maintenance                                              $1200                  3
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                  See Supplier's Training Guide for further details.

                  Train the Trainer courseware shall be developed and agreed
                  upon within 30 days of the agreement signing. During this
                  period of time Funding and Pricing will be negotiated in good
                  faith and be consistent with the above training course pricing
                  table.

         1.7      PRICES FOR DOCUMENTATION

                  A.        Sample Customer Documentation Structure

         ---------------------------------------------------------------------
         D640134C 2.0                Includes the Following:
                                     WAVEXpress/BTS Installation and
                                     Commissioning Guide
                                     WAVEXpress/BSC Installation and
                                     Commissioning Guide
                                     WAVEXpress OMC-R Installation and
                                     Commissioning Guide
                                     WAVEXpress OMC-R System
                                     Administrator's Guide
                                     WAVEView Operations and Maintenance Guide
                                     Craft PC Guide
                                     InterWAVE Parameter Dictionary
                                     Network Implementation Guide
                                     BSS Maintenance Guide

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

                  B.       Training Material
                                    Includes Instructor and Student Guido

                  C.       Documentation Cost
                                    $52,500 Annual Fee. All documentation to be
                                    distributed on electronic media.

                                 PAGE 31 OF 58
<PAGE>

         1.8      PRICES FOR GUARANTEE PERIOD EXTENSION

<TABLE>
<CAPTION>
         ---------------------------------------------------------------------------------------------------
                                          STANDARD                         PERIOD OF EXTENSION
         ---------------------------------------------------------------------------------------------------
                                         FIRST YEAR                   ONE YEAR               TWO YEARS
         ---------------------------------------------------------------------------------------------------
         <S>                    <C>                            <C>                      <C>
         Equipment              Return to Factory - No Charge       1.33% of Price              N/A
         ---------------------------------------------------------------------------------------------------
         Software                         No Charge                      N/A                    N/A
         ---------------------------------------------------------------------------------------------------
</TABLE>

         1.9      PRODUCT DESCRIPTIONS

                  See Schedule 10

2.       Notwithstanding Clause 1 above, the prices for individual Purchase
         Orders once issued shall remain firm and fixed for their duration,
         unless otherwise provided for by operation or: any other term of the
         Agreement.

3.       PRICING OF ENHANCEMENTS

         3.1      Where the Supplier enhances the Goods above and beyond the
                  requirements of the relevant Specification, including the new
                  features or facilities, the Supplier shall state in writing
                  the effect such enhancement will have on the Goods and what
                  adjustment, if any, will be required to the Agreement. The
                  Supplier shall furnish such details in a time scale agreed
                  between the Parties.

         3.2      Where the Supplier shows that an enhancement involves a change
                  in the price or lead times for the Goods, the Supplier shall
                  make best efforts as to the reasonableness of the changes
                  arising therefrom.

         3.3      The Supplier shall not enhance the Goods in any respect unless
                  instructed in writing to do so, by the Purchaser.

         3.4      The Supplier shall demonstrate best faith efforts to ensure
                  that the price for enhancements does not include any work that
                  should be performed under any other term of the Agreement or
                  any Purchase Order. This shall include, but not be restricted
                  to, enhancements in respect of operational support, repair,
                  build management and guarantee.

4.       FORECASTING MECHANISM FOR GOODS

         The forecasting mechanism for Goods volume shall be as follows:

         4.1.     The Purchaser will provide monthly a rolling 12 month
                  forecast, broken down by country, of their requirements as
                  precise as possible of the Goods to the Supplier by a date
                  to be agreed. The

                                 PAGE 32 OF 58
<PAGE>

                  Purchaser shall use best efforts to forecast and purchase at
                  least the amounts set forth in the Purchase Baseline in
                  Schedule 9.

         4.2      The forecast, broken down by country, for the current month
                  and the two months following are firm and not subject to
                  change. The third month following the current month can have
                  the quantity changed by ten percent up or down and each item
                  forecast as precisely as possible. Global bulk Purchase Orders
                  for the third month following the current month are due at the
                  end of the current month. Specific Purchase Orders as
                  described in Schedule 7 are due six (6) weeks before shipment.
                  The fourth month can have the quantity change by twenty per
                  cent up or down and each forecast item as precisely as
                  possible twenty per cent up or down. The fifth month can have
                  the quantity changed twenty per cent up or down and each item
                  forecast as precisely as possible. The sixth month can have
                  the quantity changed ten per cent up or down and each item
                  forecast as precisely as possible. For all other months the
                  forecast is given as information.

         4.3      The parties agree from time to time to discuss in good faith
                  whether the three (3) month fixed forecast period should be
                  reduced to conform with market requirements.

5.       CREDIT FOR TECHNICAL SUPPORT FROM THE PURCHASER

         In consideration of the Purchaser providing first and second level
         support to its Customers and the value of other assistance being
         provided to the Supplier hereunder, including product evolution and
         marketing support, the Supplier shall provide a credit to the Purchaser
         equal to five (5%) percent of the net Price of Goods, excluding
         Services, until such time as the Parties have developed more detailed
         information on the reasonableness of such charges in relation to the
         services provided by the Purchaser and have reached mutual agreement on
         alternate charges. The credit shall be indicated on each invoice
         submitted by the Supplier to the Purchaser and may be deducted by the
         Purchaser from such invoice. The Supplier shall not provide any similar
         credit to any other distributor of its products (including OEM
         distributors) unless such other distributor provides similar support
         services and assistance to the Supplier.

                                 PAGE 33 OF 58
<PAGE>

SCHEDULE 3

SPECIFICATIONS

FACTORY TEST SPECIFICATIONS
ACCEPTANCE TEST SPECIFICATIONS

Supplier will provide to Purchaser these documents within thirty calendar days
of the signing of the Agreement.

A meeting to accept those documents will be held within 60 days of the signing
of this Agreement.

                                 PAGE 34 OF 58

<PAGE>

SCHEDULE 4

SUPPORT REQUIREMENTS

For the purposes of this Schedule 4 "Support Period" shall mean a period of time
commencing from the date of Agreement and terminating five (5) years from the
date of delivery of the last Goods supplied under the Agreement.

1.       POST GUARANTEE REPAIR SERVICE

         The Supplier hereby undertakes to maintain a repair capability for
         Goods throughout the Support period. In accordance with this
         undertaking, the Supplier shall, if required by the Purchaser, provide
         a "post guarantee repair service" for Goods. The Supplier's charges for
         such repair are detailed in Schedule Goods repaired in accordance with
         such "post guarantee repair service" shall be repaired and re-delivered
         to the Purchaser within 30 days of return of the Goods to the Supplies
         works.

         If the product is damaged beyond reasonable cost to repair or due to
         improper maintenance because of being modified or incorrectly repaired
         by a non-authorized third party, the Supplier will not be obliged to
         effect a repair but will offer the Purchaser a replacement product at a
         price defined in this agreement. The Supplier's repair obligation does
         not extend to defects arising out of improper handling or uses of Goods
         such as, but not limited to, excessive water, or other environmental
         conditions, excessive force or vandalism, etc. In those case the
         Supplier will offer to the Purchaser replacement Goods at the prices
         quoted for Spares below with an explanation regarding the reasons not
         to repair the Goods.

2.       SPARES

         2.1      The Supplier shall, if requested, during the Support Period,
                  provide the Purchaser with any spare or replacement parts as
                  may be required subject to the field replaceable units defined
                  by the Supplier. Where agreed prices do not exist, such spares
                  or replacement parts shall be provided at prices and in time
                  scales that are fair and reasonable.

         2.2      The Supplier accepts that the Purchaser requires continuity of
                  supply and hereby undertakes to give the Purchaser at least
                  six (6) months written notice of its being unable to supply
                  Goods, spares or replacement parts covered by the Agreement.
                  In such an event the Supplier shall, without any additional
                  cost whatsoever to the Purchaser, maintain such stocks of
                  Goods, spares, replacements parts as the Supplier believes
                  necessary, to fulfill its obligations under existing Purchase
                  Orders and guarantee obligations.

         2.3      For future requirements, the Supplier will undertake to
                  propose an alternative source of supply or will offer to the
                  Purchaser the opportunity of a last time buy in respect of
                  such Goods, spares and replacements parts for stock. Such
                  offer shall remain open for acceptance, by the Purchaser, for
                  a period of not less than three (3) months from the date of
                  submission. Where agreed prices do not exist, such Goods,
                  spares and replacement parts shall be provided at prices and
                  in time scales that are fair and reasonable.

                                 PAGE 35 OF 58

<PAGE>

3.       DOCUMENTATION

         The Supplier shall, if requested, during the Support Period, provide
         the Purchaser with such information and documentation as the Purchaser
         may reasonably require in order to fulfill Customer maintenance and
         support requirements. Where agreed prices do not exist, such
         information and documentation shall be provided at prices and in time
         scales that are fair and reasonable.

4.       TECHNICAL SUPPORT

         4.1      FOR EQUIPMENT

                  The Supplier hereby agrees to make available to the Purchaser
                  a support service for Equipment for the Support Period in
                  successive renewable twelve (12) month periods. The Equipment
                  support service shall as a minimum provide for:

                  4.1.1    A service desk (contacted through a telephone
                           helpline) to enable the Purchaser to obtain a quick
                           response to the Purchaser's fault enquiries. The
                           service desk shall operate between 8:30a.m. -
                           5:30p.m. Pacific Standard Time for logging and
                           tracking fault reports Alternatively, the Purchaser
                           may use the mail or email to communicate with the
                           Supplier relative to such support. A central number
                           will be provided for 24 hour pager support for after
                           hours calls on emergency situations.

                  4.1.2    The allocation of a case number upon placing of a
                           fault report. The Purchaser shall use the case number
                           in all communications associated with the fault
                           report.

                  4.1.3    The investigation, by the Supplier, of any
                           fault/technical queries in the Equipment reported by
                           the Purchaser. If such investigation reveals an
                           error, defect or malfunction the Equipment, to
                           provide a return to service using a temporary
                           solution, acceptable to the Purchaser ("Workaround")
                           in event of failure in the time frame provided in
                           4.1.7 has upon the severity of the problem.

                  4.1.4    The Supplier shall keep the Purchaser informed of the
                           progress in resolving any fault/technical query.

                  4.1.5    Visits to the Purchaser's/Customer's sites where
                           deemed necessary for the purpose of investigation or
                           fault resolution. Attendance at the
                           Purchaser's/Customer's sites shall be on a best
                           efforts basis. The charge for such site visits is
                           detailed in Schedule 2.

                  4.1.6    The Supplier shall also provide the following
                           services as part of the support service for
                           Equipment:

                           -        Co-ordination of 3rd party support

                           -        Simulation of problems using equipment
                                    available in Suppliers test facilities

                           -        Multi-vendor product expertise

                           -        Prioritization of faults/events and escalate
                                    as required to next level

                           -        Access to the system design authorities and
                                    highest level design documentation.

                           -        Specific designs or modifications to
                                    Equipment will be developed, as required.

                           -        Documentation Updates

                                 PAGE 36 OF 58

<PAGE>

                  4.1.7    Case Seventy Definition and Closure Policy

                           The parties will agree to perform a comparison of
                           their case severity classifications within sixty days
                           of the signing of this Agreement to ensure
                           understanding and consistency of such classifications
                           using the definitions below as the guideline.

                           S1 EMERGENCY              System or network is down
                                                     and unusable as a result
                                                     of a problem which causes
                                                     fails, or results in
                                                     severe intermittent
                                                     operations with no Customer
                                                     acceptable work-arounds, or
                                                     the Customer states the
                                                     problem has a critical
                                                     impact on their operation.

                           S2 SIGNIFICANT            Impact System or network
                                                     is up and will run,
                                                     however, the problem
                                                     exists with significant
                                                     impact and which has
                                                     difficult or no
                                                     work-arounds causing
                                                     substantial performance
                                                     degradation, or prevents
                                                     the Customer from using a
                                                     critical feature of the
                                                     product or the system.

                           S3 LIMITED IMPACT         System or network is up
                                                     and running, but minor
                                                     problems exist having
                                                     limited impact. Customer
                                                     can use the system or
                                                     product with limitation
                                                     or workarounds that are not
                                                     critically impacting the
                                                     overall operations. This
                                                     could be a non-problematic
                                                     information issue such as a
                                                     documentation error as
                                                     well.

                           S4 RMA                    Logging a request for a
                                                     Return Material
                                                     Authorization.

                           S5 ENHANCEMENT            Required for a new
                                                     product or feature. This
                                                     is used by both the
                                                     Customer Advocacy function
                                                     and Marketing to prioritize
                                                     future releases(includes
                                                     documentation).

                           S6 INFORMATIONAL          Used for Customer
                                                     Information Requests

                  4.1.8     Escalation Table
<TABLE>
<CAPTION>
   ------------------ --------------------- -------------------- -------------------- ---------------------- ------------------
                                                                                      VICE PRESIDENT
                      INITIAL RESPONSE                           RELEVANT  ENGR.      CUSTOMER
        SEVERTY       (VIA TELEPHONE)       MANAGER TAC          DIRECTOR/MGR.        ADVOCACY/ENGR          EXECUTIVE STAFF
   ------------------ --------------------- -------------------- -------------------- ---------------------- ------------------
   <S>                <C>                   <C>                  <C>                  <C>                    <C>
          S1          15 Minutes            To+4 hours           To+8 hours           To+4 hours             To+24 hours
   ------------------ --------------------- -------------------- -------------------- ---------------------- ------------------
          S2          15 Minutes            To+24 hours          To+36 hours          To+4 hours             N/A
   ------------------ --------------------- -------------------- -------------------- ---------------------- ------------------
          S3          Next Working Day      To+48 hours          To+120 hours         N/A                    N/A
   ------------------ --------------------- -------------------- -------------------- ---------------------- ------------------
</TABLE>
                  TO = time of receipt of initial call

                  4.1.9    Target Time to Resolve within Receipt of Initial
                           Fault Report

                           Supplier shall use all reasonable effort to provide
                           resolution in accord with table below

                                 PAGE 37 OF 58

<PAGE>

<TABLE>
<CAPTION>
   ------------------ ------------------------ ------------------------ --------------------------------------------------
        SEVERTY       NSS WORKAROUND           BSS WORKAROUND           FULL FIX
   ------------------ ------------------------ ------------------------ --------------------------------------------------
   <S>                <C>                      <C>                      <C>
          S1          Within 24 Hours          Within 48 hours          2 Weeks Via Patch
   ------------------ ------------------------ ------------------------ --------------------------------------------------
          S2          1 Week                   1 Week                   90 Days with maintenance release
   ------------------ ------------------------ ------------------------ --------------------------------------------------
          S3          Not Required             Not Required             Commitment will be made within 60 days to a
                                                                        scheduled full or maintenance release
   ------------------ ------------------------ ------------------------ --------------------------------------------------
</TABLE>

         4.2      FOR SOFTWARE

                  The Supplier hereby agrees to make available to the Purchaser
                  a Software maintenance and support service for the Support
                  Period in successive renewable twelve (12) month periods. The
                  Software maintenance and support service shall provide for:

                  4.2.1    A service desk (contacted through a telephone help
                           line) to enable the Purchaser to obtain a quick
                           response to the Purchaser's Software Problems. The
                           service desk shall operate during 8:30a.m. - 5:30p.m.
                           Pacific Standard Time for logging and tracking fault
                           response Alternatively, the Purchaser may use the
                           mail to communicate with the Supplier relative to
                           such support

                  4.2.2    The allocation of a case log number upon placing of a
                           fault report. The Purchaser shall use the call case
                           number in all communications associated with the
                           fault report.

                  4.2.3    The investigation, by the Supplier, of any Software
                           Problem in the Software reported by the Purchaser. If
                           such investigation reveals an error, defect or
                           malfunction in the Software, to provide Correction
                           according to the following time scales based upon the
                           severity as defined in sub-clause 4.1.7:

                           Supplier shall use all reasonable effort to
                           provide resolution in accord with table below

<TABLE>
<CAPTION>
   ------------------ ------------------------ ------------------------ --------------------------------------------------
        SEVERTY       NSS WORKAROUND           BSS WORKAROUND           FULL FIX
   ------------------ ------------------------ ------------------------ --------------------------------------------------
   <S>                <C>                      <C>                      <C>
          S1          Within 24 Hours          Within 48 hours          2 Weeks Via Patch
   ------------------ ------------------------ ------------------------ --------------------------------------------------
          S2          1 Week                   1 Week                   90 Days with maintenance release
   ------------------ ------------------------ ------------------------ --------------------------------------------------
          S3          Not Required             Not Required             Commitment will be made within 60 days to a
                                                                        scheduled full or maintenance release
   ------------------ ------------------------ ------------------------ --------------------------------------------------
</TABLE>

                  4.2.4    The Supplier shall keep the Purchaser informed of the
                           progress in resolving any Software Problem.

                  4.2.5    The Supplier shall notify the Purchaser:

                           -        as soon as practicable when a new Release or
                                    new Version is issued; and

                           -        when issued new Releases or new Versions
                                    bear upon a Software Problem which the
                                    Purchaser has reported.

                                 PAGE 38 OF 58

<PAGE>

                  4.2.6    The Supplier shall deliver to the Purchaser at an
                           agreed upon price, new Releases and or new Versions
                           of the Software, as soon as practicable, including
                           any new documentation or portions thereof.

                  4.2.7    Visits to the Purchaser's/Customer's sites where
                           deemed necessary for the purpose of investigation or
                           for the installation of new Software. Attendance at
                           the Purchaser's/Customer's sites shall be on a best
                           efforts basis in response with the Purchaser's
                           request. The charge for such site visits is detailed
                           in Schedule 2.

                  4.2.8    The Supplier shall, when in-depth analysis is
                           required, provide direct access to its support
                           computer for the purposes of downloading critical
                           patches or provide information needed by the
                           Purchaser to access the computer over telephone
                           lines.

                  4.2.9    The Supplier agrees to support the then current
                           version and two previous versions of Software under
                           pricing conditions stated in sub-clause 1.5 of
                           Schedule 2. Upon release of the third Version of the
                           Software provided to the Purchaser under this
                           Agreement, the Parties agree to discuss in good faith
                           whether any modifications to this support policy is
                           required.

                  4.2.10   Supplier will issue a first root cause analysis
                           report within48 hours on S1 severity cases. A final
                           root cause analysis will be issued within thirty (30)
                           days on these cases.

                  4.2.11   The Supplier and Purchaser will hold weekly
                           conference calls to discuss and prioritize technical
                           issues.

                  For the purpose of 4.2 above, the following definitions
                  shall apply:

                           a)       "Release" or "Update" means a maintenance
                                    revision to the Software (including
                                    documentation) designed to correct an error
                                    or improve performance. A new Release
                                    (Update) is indicated by a change in
                                    characters to the right of the decimal point
                                    in the Product version number (e.g. V1.1
                                    changes to V1.2).

                           b)       "Versions" or "Upgrade" means a new version
                                    of the Software (including documentation)
                                    which incorporates a series of new releases
                                    of Software and may incorporate other
                                    changes, improvements and new features. A
                                    new Version (Upgrade) is indicated by a
                                    change in characters to the left of the
                                    decimal point in the Software version number
                                    (e.g. V I. 1 changes to V2.1).

                           c)       "Previous Sequential Releases" shall mean
                                    the new Version of the Software which has
                                    been replaced by a subsequent Version which
                                    is supported as indicated in paragraph
                                    4.2.9.

                           d)       "Software Problem" means a defect in the
                                    Software distribution media and or Software
                                    function which is inconsistent with the
                                    Software Specification.

                                 PAGE 39 OF 58

<PAGE>

                           e)       "Correction" of a Software Problem means the
                                    replacement of defective software
                                    distribution media and or making the
                                    function of Software consistent with the
                                    Software Specification.

                           f)       "Workaround" shall mean an alternative
                                    method to provide a temporary solution to a
                                    reported problem with Software to enable the
                                    continued operation of the Software that is
                                    reasonably acceptable to the Purchaser.

                                 PAGE 40 OF 58

<PAGE>

SCHEDULE 5

TRAINING PROGRAMS

SUPPLIER OBLIGATIONS

         The Supplier shall make available the necessary documentation and
         training courseware to enable the Purchaser and its Customers to use
         and perform maintenance and provide support for the Goods. The courses
         available to the Purchaser and Customers are detailed below:

         COURSES FOR THE PURCHASER PERSONNEL

         Are the same as those stated in sub-clause 1.6 of Schedule 2.
         For details please refer to the Supplier's Training Catalog

         COURSES FOR CUSTOMER PERSONNEL

         Are the same as those stated in sub-clause 1.6 of Schedule 2.
         For details please refer to the Supplier's Training Catalog

PURCHASER OBLIGATIONS

         The Purchaser will make the necessary facilities available for the
         training of their employees and Customers.

OBLIGATIONS OF BOTH PARTIES

         The Supplier shall develop a plan with the Purchaser to train the
         trainers identified by the Purchaser who will be conducting the
         training at sites to be mutually agreed to.

                                 PAGE 41 OF 58
<PAGE>

SCHEDULE 6

QUALITY REQUIREMENTS

1.         QUALITY CONTROL

         1.1      The Supplier shall operate a quality system that meets the
                  requirements of ISO 9001 within twelve (12) months of signing
                  this Agreement and to the reasonable satisfaction of the
                  Purchaser at all locations undertaking activities in support
                  of the Agreement.

         1.2      The Purchaser's and the Supplier's named contacts who have
                  management responsibility for quality assurance for all
                  activities covered by the Agreement are identified below:

                  The Supplier's Quality Manager         Dave Spaulding
                                                         656 Bait Island Road
                                                         Redwood City, CA, 94063

                  The Purchaser's Quality Manager        Claude Duez
                                                         Nortel Matra Cellular
                                                         Guyancourt, France

         1.3      The Supplier shall provide access to the premises',
                  undertaking work relating to the Agreement, for the personnel
                  of the Purchaser and its Customers' to carrying out any
                  assessments deemed necessary to ensure the Supplier's
                  compliance with ISO 9001, process capability, and any other
                  reasonable requirements of the Purchaser.

         1.4      All activities associated with the Agreement, and in
                  particular all release activities associated with procurement,
                  manufacturing, testing and repairs, shall be clearly
                  documented to show the sequence of activities and the
                  acceptance criteria. This information shall be documented such
                  that a controlled copy is supplied to the Purchaser within
                  three (3) months of signing the Agreement. Such documentation
                  shall be kept up to-date at all times by the Supplier.

         1.5      Final Factory Test results will be supplied with the shipment
                  of the Goods.

         1.6      All Goods shall be new, of sound design, materials and
                  workmanship.

2.       REPORTS AND SUPPLIER PERFORMANCE

         2.1      The Supplier shall provide regular monthly reports, to be
                  submitted on a date to be agreed between the Parties, on the
                  performance of Goods and Services in relation to:

                  -        delivery against lead time;

                  -        reject rate at manufacturing release;

                  -        Commissioning Failure Rate;

                  -        Reliability;

                  -        repair turn-around-time;

                                 PAGE 42 OF 58
<PAGE>

                  -        level of no fault found; and

                  -        repair diagnostics for Customer returned product.

                  The above reports shall provide data for each performance
                  measure in relation to the preceding calendar month. The
                  performance levels to be achieved by the Supplier, where
                  appropriate, are detailed in the Appendix to this Schedule 6.

                  Where the Supplier fails to achieve the required level(s), the
                  Purchaser and the Supplier shall agree a corrective action
                  plan which shall put in place activities and procedures to
                  remedy such non-achievement. Such corrective action plan shall
                  be without prejudice to any rights or remedies available to
                  the Purchaser under the Agreement. The performance levels
                  shall be reviewed and agreed annually.

         2.2      The Purchaser shall provide monthly reports of the failure
                  rate of Goods prior to going into service and the "In service"
                  reliability of Goods.

3.         MANUFACTURING CHANGES

         3.1      The Supplier shall formally document, in accordance with the
                  Supplier's "Change Control Procedure", all changes and/or
                  concessions approved by the Purchaser according to Clause 15
                  of Schedule 1 which affect the Goods' configuration or
                  compatibility.

         3.2      Goods will only be accepted and paid for on condition that no
                  Product Change in design has been introduced by the Supplier
                  without notifying the Purchaser in writing.

4.       Reliability

         4.1      The Supplier shall submit to the Purchaser as part of its
                  deliverable documentation a "Reliability Plan" for each Goods
                  type required under the Agreement. The Reliability Plan shall
                  be provided to the Purchaser for review and approval not later
                  than 90 days from the date of the Agreement.

         4.2      The content and format of the Reliability Plan shall be agreed
                  with the Purchaser and shall include details of the Suppliers
                  method's, process and activities for predicting, demonstrating
                  and improving reliability of the Goods. The Reliability Plan
                  shall also identify the planned test phases and activities
                  during manufacture, to demonstrate the Goods compliance with
                  the Purchaser's requirements.

         4.3      As part of the Reliability Plan, the Supplier shall provide to
                  the Purchaser reports and results of the outcome/output of
                  those activities detailed in the Reliability Plan.

5.       GENERAL

         5.1      The Supplier shall co-operate with the Purchaser in
                  investigating and resolving any Customer inquiries and
                  complaints.

                                 PAGE 43 OF 58
<PAGE>

         5.2      The Supplier shall keep the Purchaser informed of its
                  manufacturing capacity and the effect of any changes including
                  process and location that may impact upon the manufacturing
                  capability. This information shall be provided so as to be
                  complimentary to the forecasting process.

                                 PAGE 44 OF 58
<PAGE>

APPENDIX TO SCHEDULE 6

This Appendix provides details of the performance measures for Goods and
Services. Supplier fully intends to meet the Target Performance Levels described
below and shall use all reasonable efforts to do so.

1.       DELIVERY

         The quantifies of Goods delivered by the due date as a percentage of
         the total quantity of Goods required to be delivered during any
         Supplier fiscal quarter shall be measured and communicated to the
         Purchaser no later than fifteen (15) days after the end of the
         Supplier' s quarter and track a four (4) quarter history.

         Target Performance Level = 100%

2.       MANUFACTURING RELEASE FAILURE RATES

         The number of Goods passing the final test stage on first submission,
         as a percentage of the total number of Goods submitted to the final
         test during any Supplier fiscal quarter shall be measured and
         communicated to the Purchaser no later than fifteen (15) days after the
         end of the Supplier's quarter. The data shall be tracked for four (4)
         consecutive quarters.

         Target Performance Level = > 95%

3.       COMMISSIONING FAILURE RATE

         The number of Goods returned to the Supplier for repair from test stage
         prior to be being placed in service, as a percentage of the Goods that
         have been supplied within the "window". The data shall be tracked for
         four (4) consecutive quarters.

         Target Performance Level = TBD In next 60 days

4.       RELIABILITY

         The MTBF of each unit measured using the in-services returns for repair
         and the in-service equipment services population. The data shall be
         tracked for four (4) consecutive quarters.

         Target Performance Level= > Agreed MTBFs
<TABLE>
<CAPTION>

          --------------------------------- ------------------------------------------------------ --------------------------------
          PART NUMBER                       DESCRIPTION OF FIELD REPLACEABLE UNIT                  ESTIMATED MTBF - HOURS
          --------------------------------- ------------------------------------------------------ --------------------------------
          <S>                               <C>                                                    <C>
          M340220                           Clock, 13MHz                                                                  1,344,267
          --------------------------------- ------------------------------------------------------ --------------------------------
          M340014                           E-l, Long Haul, 2 Port                                                          406,861
          --------------------------------- ------------------------------------------------------ --------------------------------
          M340098                           E-1 with 2 TRAUS                                                                244,141
          --------------------------------- ------------------------------------------------------ --------------------------------
          M340121                           IWP                                                                             188,621
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640034                           Power supply 350W, Hi24, 115v AC                                                297,300
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640035                           Power supply 350W, Hi24, 230v AC                                                297,300
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640026                           Power supply 350W, Hi24, -48V DC                                                297,300
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640027                           Power Supply 50A, 115V AC                                                       297,300
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640028                           Power Supply 50A, 230V AC                                                       297,300
          --------------------------------- ------------------------------------------------------ --------------------------------
          M340063                           RF Distribution 900 MHz                                                         305,437
          --------------------------------- ------------------------------------------------------ --------------------------------

                                 PAGE 45 OF 58
<PAGE>

          --------------------------------- ------------------------------------------------------ --------------------------------
          M340088                           RF Distribution 1800 MHz                                                        305,437
          --------------------------------- ------------------------------------------------------ --------------------------------
          N/A                               RF Distribution 1900 MHz                                                            N/A
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640116                           TRX 900 MHz                                                                     122,392
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640117                           TRX 1800 MHz                                                                    122,392
          --------------------------------- ------------------------------------------------------ --------------------------------
          N/A                               TRX 1900 MHz                                                                        N/A
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640154                           TurboWAVE (900 MHz)                                                             100,000
          --------------------------------- ------------------------------------------------------ --------------------------------
          M648154                           TurboWAVE (1800 MHz)                                                            100,000
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640025                           Fan, 12V Power Supply                                                            66,241
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640021                           Cable kit, full set, indoor                                                         N/A
          --------------------------------- ------------------------------------------------------ --------------------------------
          M640048                           WAVEXpress Chassis                                                                  N/A
          --------------------------------- ------------------------------------------------------ --------------------------------
</TABLE>

5.       REPAIR TURN AROUND TIME

         The number of Goods repaired and returned to the Purchaser within the
         turnaround time, as a percentage of the total number of Goods repaired
         and returned to the Purchaser

         The turnaround time is thirty (30) days measured from receipt by the
         Supplier to dispatch by the Supplier to the Purchaser.

         Target Performance Level = 100%

6.       NO FAULT FOUND

         The number of units diagnosed as no fault found as a percentage of the
         units returned to the Purchaser during each Supplier fiscal quarter
         shall be measured and communicated to the Purchaser no later than
         fifteen (15) days after the end of the Supplier's quarter. The data
         shall be tracked for four (4) consecutive quarters.

         Target Perforce Level = 75%

7.       REPAIR DIAGNOSTICS

         Details of the reported fault and repair action taken on each unit
         diagnosed during the Supplier's fiscal quarter will be gathered and
         returned to the Purchaser no later than twenty-one (21) days after the
         end of each quarter. Both parties will strive to reduce this reporting
         interval over the next twelve months with the targeting a one month
         turnaround time.

         Performance Level = No target applicable.

                                 PAGE 46 OF 58
<PAGE>

SCHEDULE 7

ORDERING AND BILLING DETAILS

1.       Purchase Orders shall contain the following details:

         -        Unique Purchase Order Number,

         -        The Purchaser's Address;

         -        Description, Part Number, Specification and Quantity of Goods;

         -        Description of Services required;

         -        Delivery Date;

         -        Delivery Address;

         -        Price;

         -        Name of the Purchaser's Authorized Procurement Administrator,
                  and

         -        Reference to the Agreement.

         Purchase Orders shall be sent to the following address:

         656 Bair Island Road
         Redwood City, CA, 94063

         The Supplier's Authorized Representative is Stephen Lavallee

2.       Signed Purchase Order acknowledgments shall be returned to the
         Purchaser's Contract Administration Department at the address given in
         clause 3, below.

3.       THE PURCHASER'S ADDRESSES AND PROCUREMENT ADMINISTRATOR

         3.1      PURCHASING AND CONTRACT ADMINISTRATION

         Nortel-Malra Cellular
         BP 50
         1 Place des fres Montgolfier
         78042 Guyancourt
         France

         The Procurement Administrator is John Haydon

         3.2      INVOICING

         Invoices should be sent to the following address. They will be
         forwarded by the Procurement Administration for payment by the
         appropriate Purchaser.

         Nortel-Malra Cellular
         1 Place des fres Montgolfier
         78042 Guyancourt

                                 PAGE 47 OF 58

<PAGE>

         France

         The Purchaser's Authorized Invoicing Administrator is John Haydon

                                 PAGE 48 OF 58

<PAGE>

SCHEDULE 8

ESCROW

1.       The Supplier shall, within thirty (30) days of receipt of a written
         request from the Purchaser, enter into an escrow agreement with a
         reputable escrow agent for the deposit of Software source code
         information and hardware design information relating to Goods
         (hereinafter collectively referred to as "Escrow Information"). The
         terms of the escrow agreement are to be agreed between the Parties, but
         shall at minimum provide:

         1.1      an undertaking by the Supplier that all modifications, updates
                  and changes to the Escrow Information are deposited within
                  thirty (30) days of them becoming available;

         1.2      that if Supplier fails, through no fault of Purchaser, to
                  provide a Correction or Workaround for an S1 severity Software
                  Problem within ninety (90) days of Purchaser's fault report to
                  Supplier, then copy of the Escrow Information necessary to
                  remedy such Software Problem shall be released to Purchaser,
                  provided that Purchaser may only use such Escrow information
                  to remedy such Software Problem, and all such Escrow
                  Information shall be returned to the escrow agent immediately
                  after resolution of thc Software Problem;

         1.3      that if Supplier commits any act of bankrupt, or compounds
                  with its creditors, or a petition or receiving order in
                  bankrupt is presented or made against the Supplier, or a
                  petition for an administration order is presented in relation
                  to the Supplier, or a resolution or petition to wind up the
                  Supplier, or a receiver or administrative receiver is
                  appointed, other than for reconstruction reorganization or
                  amalgamation, and such act or petition is not cured,
                  dismissed, or withdrawn within 90 days thereafter, or Supplier
                  ceases to carry on business, then the Escrow Information shall
                  be released to Purchaser, provided that Purchaser shall only
                  be entitled to use the Escrow Information to enable the
                  continued supply of Goods and the provision of maintenance a
                  support services to existing Customers.

2.       All costs associated with the deposit and update of Escrow
         Information shall be for the Purchaser's account.

                                 PAGE 49 OF 58

<PAGE>

SCHEDULE 9

PURCHASING BASELINE AND EXCLUSIVITIES

1.       The Purchaser's Purchase Baseline is defined as follows (all revenues
         are net of service credit as described in Schedule 2, clause 5):

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
US$M                            1998                     1999                   2000           2001           2002
Calendar Quarter      Q2       Q3       Q4      Q1       Q2       Q3       Q4
<S>                   <C>     <C>       <C>     <C>      <C>      <C>     <C>   <C>            <C>            <C>
Quarterly Revenue     3        5        8       11       5        5        0
Annual Revenue                                  16*                        21*     50*          82*              131
Cumulative Revenue                              16                         37      87           169              300
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
*    Purchaser does not have the obligation to place these Purchase Order,
     except as set forth in Schedule 9, sub-clause 2.1 and Schedule 2, Clause 4
     and subject to the payment of the sums described in sub-clause 1.2 below
     upon the Purchaser's failure to purchase Goods as anticipated in 1998 and
     1999.

         1.1      The Purchase Baseline can be adjusted, by good faith
                  negotiations, if, any material microcellular product
                  milestones as defined in the Development Plan (as stated in
                  Schedule 10, and subject to revision by mutual agreement of
                  the parties within 30 days after signing this Agreement) are
                  not met within 90 days of the target date in the Development
                  Plan.

         1.2      If the purchases by the Purchaser, during any quarter of 1998
                  or 1999 are less than those indicated in the Purchase Baseline
                  above, the Purchaser shall pay the Supplier, at the end of
                  such quarter sum equal to 38.1% of the Price of the shortfall
                  of Goods not purchased by the Purchaser ("Shortfall Payment").

                  1.2.1    To the extent that the Purchaser makes up the
                           shortfall with an excess in the following quarter
                           (over the purchase baseline for such following
                           quarter), the Supplier will credit the Purchaser for
                           the shortfall payment.

                  1.2.2    The Purchaser shall not be obligated to pay for any
                           shortfalls due to the Supplier's failure to deliver
                           Goods which meet mutually agreed acceptance criteria.

         2.       Reflecting the fact that the Purchaser will supply
                  substantial, valuable and proprietary technology, technical
                  information and know-how to the Supplier pursuant to the
                  Technical Information Agreement being entered into between the
                  Parties, the Supplier shall be restricted from entering into
                  an OEM or distributor agreement with Nokia or Ericsson until
                  December 31, 1999 ("Limited Exclusivity"). After such time,
                  the Purchaser's Limited Exclusivity shall be terminated only
                  if the annual purchase of Goods by the Purchaser is less than
                  eighty (80%) percent of the annual Purchase Baseline at the
                  end of any of the calendar years 2000, 2001, 2002. Nothing in
                  this Agreement shall be construed to prevent the Supplier from
                  developing other products, whether or not competing with the
                  Goods, for supply to Nokia or Ericsson or any other purchaser,
                  provided that the Supplier complies with all provisions of
                  this Agreement, the Technical Information Agreement and the
                  Patent License Agreement.

                  2.1      If, however, the Purchaser's failure to meet an
                           eighty (80%) percent annual target is attributable
                           solely to the Supplier's delay in meeting a material
                           microcellular product milestone, or the Supplier's
                           delay in delivering goods which meet mutually agreed

                                 PAGE 50 OF 58

<PAGE>

                  acceptance criteria, the annual period for determining
                  achievement of the annual target shall be extended for the
                  length of such delay

3.       On or before the Second Closing Date, the parties shall, by exercise of
         their commercially reasonable best efforts acting in good faith, agree
         upon a methodology for periodic reviews of the market forces, including
         pricing and other factors that are materially impacting the Purchaser's
         ability to achieve the commitments in the Purchaser's Purchase Baseline
         and related commitments hereunder and from time to time to negotiate in
         good faith any clarifications or modifications that may be appropriate
         and equitable in the interests of each of the parties by reasons of
         conditions prevailing from time to time in markets for the Goods.

                                 PAGE 51 OF 58

<PAGE>

SCHEDULE 10

PRODUCT DESCRIPTIONS

EQUIPMENT

1.       WAVEXpress BTS

         SPECIFICATIONS

         Cellular Standards Supported                ETSI GSM Phase 2
         Features Supported                          Base transceiver
                                                     station (BTS); GSM RF
                                                     management, data and fax,
                                                     short message service,
                                                     antenna receive diversity,
                                                     encryption, optional power
                                                     supply redundancy
         Transmit RF Frequency                       GSM 935- 960 MHz
                                                     DCS 1805 - 1880 MHz
         Receive RF Frequency                        GSM 890- 915 MHz
                                                     DCS1710 - 1785 MHz
         Antenna Power                               Up to 2.0 watts at antenna
                                                     port (may be extremely
                                                     amplified for greater
                                                     transmit power)
         Cell Size (Range)                           Up to 3 kilometers maximum
                                                     radius depending on
                                                     topography and environment
         Number of TRXs per BTS                      1 - 3
         Channels per BTS                            7- 22 simultaneous
         Mobile Stations Supported                   GSM/DCS-compliant mobile
                                                     station (Phase 1, 2 or 2+)
         GSM/PCS Interfaces Supported                Abis and Radio (Phase 2)
         Processors                                  Distributed Motorola 68040
                                                     and 68360
         Mobile Interfaces Supported                 GSM full-rate RF interface,
                                                     2400 bps -- 9600 bps
                                                     transparent
                                                     data/FAX
         Trunk Network Interfaces                    G.703-compliant. E1, T1
                                                     planned
         Power Requirements                          Power consumption: 150
                                                     watts, 110/220 volts 50-60
                                                     Hz ac, -48 volts dc planned
         Dimensions (h x w x d)                      55 x 23 x 41 centimeters
                                                     (21.5 x 9 x 16 inches)
         Weight                                      20 kg (44 lbs.)
         Operating Environment                       Temperature: -10 DEG. to
                                                                  45 DEG. C
                                                     Humidity:    10% to 90%
                                                                  noncondensing,
                                                                  10% to 95%
                                                                  noncondensing
                                                                  (outdoor)

2.       WAVEXpress BSC
         SPECIFICATIONS
         Cellular Standards Supported                ETSI GSM Phase 2
         Features Supported                          Base station
                                                     controller (BSC); GSM RF
                                                     power management, data and
                                                     fax, short message service,
                                                     optional CPU and power
                                                     supply redundancy, optional
                                                     local transcoding (TRAU)
         BTS RF Protocols Supported                  GSM 900
                                                     DCS 1800
         Number of E1/T1 Ports per BSC               2 - 14
         Number of BTSs per BSC                      1 - 20
         Number of TRXs per BSC                      1 - 20, 1 - 30 in Release 3

                                   PAGE 52 OF 58
<PAGE>

         BTSs Supported                              interWAVE WAVEXpress/BTS
                                                     others supporting GSM Abis
                                                     interface (requires
                                                     verification testing with
                                                     interWAVE)
         Mobile Stations Supported                   GSM/DCS-compliant mobile
                                                     station (Phase 1, 2 or 2+)
         GSM/PCS Interfaces Supported                A and Abis
         Processors                                  Distributed Motorola 68040
                                                     and 68360
         Mobile Interfaces Supported                 GSM full-rate RF interface,
                                                     2400 bps- 9600 bps
                                                     transparent
                                                     data/FAX
         Trunk Network Interfaces                    G.703-compliant. El, T1
                                                     planned
         Power Requirements                          Power consumption: 150
                                                     watts, 110/220 volts 50-.60
                                                     Hz ac, -48 volts dc planned
         Dimensions (h x w x d)                      55 x 23 x 41 centimeters
                                                     (21.5 x 9 x 16 inches)
         Weight                                      20 kg (44 lbs.)
         Operating Environment                       Temperature: -10 DEG. to
                                                                  45 DEG. C
                                                     Humidity:.   10% to 90%
                                                                  noncondensing,
                                                                  10% to 95%
                                                                  noncondensing
                                                                  (outdoor)

3.       TurboWAVE BTS

         SPECIFICATIONS
         Cellular Standards Supported                ETSI GSM Phase 2
         Features Supported                          Base transceiver
                                                     station (BTS); GSM RF
                                                     management, data and fax,
                                                     short message service,
                                                     encryption, optional power
                                                     supply redundancy
         Transmit RF Frequency                       GSM 935 - 960 MHz
                                                     DCS 1805- 1880 MHz
         Receive RF Frequency                        GSM 890- 915 MHz
                                                     DCS 1710 - 1785 MHz
         Antenna Power                               Up to 4.0 watts at antenna
                                                     port with 2 TRXs and 1
                                                     antenna
                                                     Up to 8.0 watts at antenna
                                                     port with 2 TRXs and 2
                                                     antenna
                                                     Up to 16.0 watts at antenna
                                                     port with 1 TRX and 1
                                                     antenna
         Cell Size (Range)                           Up to 15 kilometers maximum
                                                     radius depending on
                                                     topography and environment
         Number of TRXs per BTS                      1 - 2
         Channels per BTS                            7- 14 simultaneous
         Mobile Stations Supported                   GSM/DC-compliant mobile
                                                     station (Phase 1, 2 or 2+)
         GSM/PCS Interfaces Supported                Abis and Radio (Phase 2)
         Processors                                  Distributed Motorola 68040
                                                     and 68360
         Mobile Interfaces Supported                 GSM full-rate RF interface,
                                                     2400 bps- 9600 bps
                                                     transparent
                                                     data/FAX
         Trunk Network Interfaces                    G.703-compliant E1, T1
                                                     planned
         Power Requirements                          Power consumption: 250
                                                     watts, 110/220 volts 50-60
                                                     Hz ac, -48 volts dc planned
         Dimensions (h x w x d)                      55 x 23 x 41 centimeters
                                                     (21.5 x 9 x 16 inches)
         Weight                                      20 kg (44 lbs.)
         Operating Environment                       Temperature: -10 to 45
                                                                  DEG. C
                                                     Humidity:.   10% to 90%
                                                                  noncondensing,
                                                                  10% to 95%
                                                                  noncondensing
                                                                  (outdoor)

4.       WAVEXchange

         SPECIFICATIONS

                                   PAGE 53 OF 58
<PAGE>

         Applications                                GSM mobile networks,
                                                     wireless local loop, or
                                                     wireless PBX adjunct
         Base Functionality                          Speech Services:
                                                     GSM900/DCS1800/PCS1900
                                                     (future)
                                                     Inter/lntra BSC handover,
                                                     Integral VLR/HLR per GSM
                                                     3.08 and GSM 9.02 MAP Call
                                                     management (GSM 4.08)
                                                     Mobility management (GSM
                                                     4.08)
                                                      - Ciphering,
                                                        identification,
                                                        location update,
                                                        identification, IMSI
                                                        attach/detach, TMSl
                                                        reallocation,
                                                     BSSMAP per GSM 8.08, both
                                                     connection/connectionless
                                                     Unified OMC, integrating
                                                     OMC-S/OMC-R applications
                                                     Call data records per GSM
                                                     12.05, ASCII formatted
                                                     Performance per GSM 12.04,
                                                     with proprietary extensions
                                                     Alarm/event management,
                                                     with proprietary extensions
         Base Platform                               9-slot VME backplane with
                                                     TDM bus (16 lines x 8Mbps)
                                                     IWP Module (68040 CPUI68360
                                                     Comm. Proc.)
                                                      - OMC connectivity via
                                                        Ethernet DB15 connector
                                                      - Craft Interface (RS-232c
                                                        9-pin); external alarms
                                                        (RJ45)
                                                      - Hard disk drive and
                                                        flash memory
                                                     Dual port El/T1 module
                                                     (68360 Comm. Proc.) planned
                                                      - Support for 14 E1 ports
                                                        per chassis
                                                      - Integral 64kbps time/
                                                        space switch"
                                                      - Available with BNC 75
                                                        omega or DB15 120 omega
                                                        connectors
                                                      - Echo cancellation/tones
                                                        available
                                                      - 1->N trunk redundancy
                                                        (future)
                                                     Redundant power supply
                                                     (optional)
         Services                                    Emergency calls
                                                     Call Barring (Operator
                                                     Determined - ODB), GSM 2.88
                                                     Call Forwarding
                                                     Unconditional (CFU - OD),
                                                     GSM 2.82 Intra WAVEXchange
                                                     FAX/data services, GSM
                                                     2.02/2.03
         Performance                                 Call processing
                                                     capabilities: 100 Erlangs
                                                     providing -8000 BHCA
                                                     Performance goals: per
                                                     GSM 3.05
         Environmental                               Temperature:  0 DEG. C to
                                                                   45 DEG. C
                                                     Humidity 0% to 95%,
                                                     noncondensing

5.       Combo

         SPECIFICATIONS
         Applications                                GSM mobile networks,
                                                     wireless local loop, or
                                                     wireless PBX adjunct
         Base Functionality                          Speech Services:
                                                     GSM900/DCS1800/PCS1900
                                                     (future)
                                                     Integral VLR/HLR per GSM
                                                     3.08 and GSM 9.02 MAP Call
                                                     management (GSM 4.08)
                                                     Mobility management (GSM
                                                     4.08)
                                                      - Ciphering,
                                                        identification,
                                                        location update,
                                                        identification, IMS1
                                                        attach/detach, TMSI
                                                        reallocation,
                                                     BSSMAP per GSM 8.08, both
                                                     connection/connectionless
                                                     Call data records per GSM
                                                     12.05, ASCII formatted
                                                     Performance per GSM 12.04,
                                                     with proprietary extensions
                                                     Alarm/event management,
                                                     with proprietary extensions
         Features Supported                          GSM RF management, data and
                                                     fax, short message service,
                                                     encryption,
         Transmit RF Frequency                       GSM 935- 960 MHz
                                                     DCS 1805 - 1880 MHz
         Receive RF Frequency                        GSM 890- 915 MHz
                                                     DCS 1710- 1785 MHz

                                   PAGE 54 OF 58
<PAGE>

         Antenna Power                               Up to 16.0 watts at antenna
                                                     port with 1 TRX and 1
                                                     antenna
         Cell Size (Range)                           Up to 15 kilometers maximum
                                                     radius depending on
                                                     topography and environment
         Number of BTS per Combo                     1 - 3 planned
         Number of TRXs per Combo                    1 - 2, 1 - 10 planned
                                                     (3TRX per BTS and 1TRX
                                                     in Combo)
         Channels per Combo                          7 - 14 simultaneous
         Mobile Stations Supported                   GSM/DCS- compliant mobile
                                                     station (Phase 1, 2 or 2+)
         Base Platform                               9-slot VME backplane with
                                                     TDM bus (16 lines x 8Mbps)
                                                     IWP Module (68040 CPU/68360
                                                     Comm. Proc.)
                                                      - OMC connectivity via
                                                        Ethernet DB15 connector
                                                      - Craft Interface (RS-232c
                                                        9-pin); external alarms
                                                        (RJ45)
                                                      - Hard disk drive and
                                                        flash memory
                                                     Dual port E1/T1 module
                                                     (68360 Comm. Proc.) planned
                                                      - Support for 14 E1 ports
                                                        per chassis
                                                      - Integral 64kbps time/
                                                        space switch
                                                      - Available with BNC
                                                        75omega or DB15
                                                        120omega connectors
                                                      - Echo cancellation/tones
                                                        available
                                                      - 1->N trunk redundancy
                                                        (future)
                                                     Redundant power supply
                                                     (optional)
         Services                                    Emergency calls
                                                     Call Barring (Operator
                                                     Determined - ODB), GSM 2.88
                                                     Call Forwarding
                                                     Unconditional (CFU - OD),
                                                     GSM 2.82
         GSM/PCS Interfaces Supported                Abis and Radio (Phase 2)
         Processors                                  Distributed Motorola 68040
                                                     and 68360
         Mobile Interfaces Supported                 GSM full-rate RF interface,
                                                     2400 bps - 9600 bps
                                                     transparent data/FAX
         Trunk Network Interfaces                    G.703-compliant. El, T1
                                                     planned
         Power Requirements                          Power consumption: 250
                                                     watts, 110/220 volts 50-60
                                                     Hz ac, -48 volts dc planned
         Dimensions (h x w x d)                      55 x 23 x 41 centimeters
                                                     (21.5 x 9 x 16 inches)
         Weight                                      20 kg (44 lbs.)
         Operating Environment                       Temperature: -10 DEG. to
                                                                  45 DEG. C
                                                     Humidity     10% to 90%
                                                                  noncondensing,
                                                                  10% to 95%
                                                                  noncondensing
                                                                  (outdoor)

6.       WAVEView OMC

         APPLICATIONS
         Configuration Management
                                                   - Region-wide configuration
                                                     database
                                                   - Modification of network
                                                     elements and network
                                                     parameters
                                                   - Remote download of
                                                     software to network
                                                     elements
                                                   - Audit functions that upload
                                                     current configuration of
                                                     network elements
                                                   - Region map that displays
                                                     the network elements and
                                                     connectivity
                                                   - Addition and deletion of
                                                     network elements (MSC, BSC,
                                                     and BTS)
                                                   - Full support of cell and
                                                     frequency configuration
                                                     management
                                                   - Region map displays current
                                                     network element states'
         Fault Management
                                                   - Real-time monitoring of the
                                                     network for faults and
                                                     problems
                                                   - Visual indication of
                                                     problem areas using
                                                     detailed views
                                                   - Polling of the wireless
                                                     access network to determine
                                                     the status of
                                                   - the operations and
                                                     maintenance communication
                                                     links
                                                   - Maintenance of daily event
                                                     logs
                                                   - Tracking of active alarm
                                                     conditions
                                                   - Audible alarms based on
                                                     severity

                                   PAGE 55 OF 58
<PAGE>

                                                   - Clearing and acknowledgment
                                                     of alarms
                                                   - Alarm seventy can be
                                                     altered
         Performance Management
                                                   - Collects network
                                                     performance statistics
                                                   - Building of a knowledge
                                                     base of network resource
                                                     usage for strategic
                                                     business and network
                                                     planning decisions
                                                   - Use of performance data for
                                                     troubleshooting and
                                                     monitoring network
                                                     performance
         Data Import and Export
                                                   - Integrates with existing
                                                     network management support
                                                     tools
                                                   - Import cell configuration
                                                     data from existing cell
                                                     planning tools
                                                   - Export of network
                                                     performance data and
                                                     statistics to cell
                                                     planning tools
                                                   - Periodic collection BSC/BTS
                                                     statistics into ASCII files
                                                     for export to external
                                                     tools
                                                   - Export of historical event
                                                     and alarm logs
         Access Security Management
                                                   - Definition of user access
                                                     privileges settable by the
                                                     administrator
                                                   - Definition of different
                                                     classes of WAVEView users,
                                                     privileges, and passwords
                                                   - Two levels of security
                                                     control beyond normal UNIX
                                                     login security
                                                     - Password authorized use
                                                       of WAVEView
                                                      - User restrictions based
                                                        on domains and object
                                                        class access control

                                   PAGE 56 OF 58
<PAGE>

DEVELOPMENT PLAN FOR BSS RELEASES

<TABLE>

<S> <C>
1   BSS Release 2.0 (Currently Shipping)                     3.   BSS Release 4.0 (Calendar Q3, 1998)

    MAIN FEATURES                                                 ADDITIONAL FEATURES
    -    No cycling of MS power on handover                       -    SMS Cell Broadcast
    -    MS Dynamic Power Control on                              -    Handover on congestion with threshold
         RxQual and RxLev                                         -    Force handover to second best cell
    -    Separate Settable HO Margins                             -    DTX downlink (uplink by MS)
    -    MS fast Power Down                                       -    Call Trace
    -    Speed Sensitive microcell HO                             -    Double BCCH allocation lists
    -    GSM 12.21 standard Abis interface                        -    Call Queuing
    -    Racal BSS Testing Support                                -    Idle Channel interference
    -    TRX Hot Swap                                                  measurement and notification
    -    Enh Network Perf Statistics Module                       -    Very early assignment
         Serial Number Id                                         -    Handover margins for each cell
    -    Non-Encrypted Software Release
    -    GSM Data Services

2.  BSS Release 3.0 (Calendar Q2, 1998)                      4.   BSS Release 5.0 (Calendar Q1, 1999)

    ADDITIONAL FEATURES                                           ADDITIONAL FEATURES
    -    WAVEXpress BSC Capacity                                  -    New E1/T1 module for up to 8 BTS per BSC E1/T1 card
         Increase                                                      -  -16Kb switching
         -  -30 TRXs per BSC                                      -    Enhanced Full Rate Vocoder
         -  -15 BTSs per BSC                                      -    Cost Reduced TRX with
    -    Antenna Receive Diversity                                     -  -frequency hopping
    -    Dynamic Power Control                                         -  -forward and reflected
    -    Directed Retry (phase 1 and 2                                    power detection
         mobiles)                                                 -    Paging Group Reorganization
    -    3 TRXs per WAVEXpress BTS                                -    Adjustment of uplink/downlink volume
    -    TurboWAVE Integrated high power                          -    Automatic E1/T1 module hardware occupancy detect
         -   -2-16 Watts                                          -    More flexible SDCCH Channel configuration
         -   -900 MHz and 1800 MHz                                -    Dynamic Channel Allocation (DCA)
    -    WAVEXpress BTS Daisy Chain
    -    HDSL Modem (OEM Adjunct)
</TABLE>

                                              Page 57 of 58

<PAGE>

DEVELOPMENT PLAN FOR NSS RELEASES

<TABLE>

<S><C>
1.   NSS Release 2.0 (Currently Shipping)                     3.   NSS Release 4.0 (Calendar Q3, 1998)

     MAIN FEATURES                                                 ADDITIONAL FEATURES
     -     Support (2) BSC; (5) BTS; (2) TRX each                  -     Support (5) BSC (BSS 4.0 rules),
     -     500 Subs @ 0.1 Erlang                                         max 30TRX
     -     'A' Interface to interWAVE BSC                          -    1,000 Subs @ 0.1 Erlang
     -     HLR/VLR Support                                         -    2,000 Subs @ 0.05 Erlang
     -     Authentication                                          -    Combo Switeh/BSC/BTS
     -     Ciphering                                                    -    Support for (2) TRX
     -     Emergency Call                                               -    200 Subs @ 0.025Erlang
     -     ISDN PRI Trunks                                              -    integrated HLR
     -     Dial Plan (E. 164)                                           -    modular expansion
     -     DTMF / MF Tones                                         -    Private A-Link Multiplexer
     -     Call Detail Records (CDRs)                                   (PALIM)
     -     Abbreviated Dial Plan                                   -    QSIG (Adjunct)
     -     MFCR2 Trunks                                            -    Call Forwarding Conditional
     -     Call Barring (Operator Determined)                      -    Call Waiting
                                                                   -    Call Hold
                                                                   -    Call Transfer
2.   NSS Release 3.0 (Calendar Q2, 1998)                           -    Trunk Group Management
                                                                   -    SMS (in investigation)
     ADDITIONAL FEATURES                                           -    Voice Mail (in investigation)
     -    Integrated OMC-R-S-HLR                                   -    MAP for central HLR
     -    Call Forwarding Unconditional
     -    Data/Fax (intra WX)
     -    Callid (CLIR/CLIP)                                     4.   NSS Release 5.0 (Calendar Q1, 1999)
     -    Echo Cancellation via external box                          ADDITIONAL FEATURES
     -    Performance Measurements                                    -    Support (5) BSC (BSS 5.0 rules),
                                                                           max 60TRX
                                                                      -    2,000 Subs @ 0.1 Erlang
                                                                      -    5,000 Subs @ 0.04 Erlang
                                                                      -    Call Conference (multi-party)
                                                                      -    Multi-site WAVEXchange Networks
                                                                      -    16 Kb switching
</TABLE>

                                     Page 58 of 58

<PAGE>

                        AMENDMENT NO. 2 TO OEM AGREEMENT

This Amendment No. 2 (this "Amendment") to the Revised OEM Purchase Agreement
between the parties effective March 27. 1998 and previously amended by an
Amendment No. 1 effective April 29, 1998 (together the "Agreement") is made and
entered into this 21st day of April, 1999 by and between Northern Telecom
Limited, a company incorporated under the laws of Canada, and interWAVE
Communications International, a B. V. company incorporated under the laws of the
Netherlands.

The parties agree as follows:

         1.       The Agreement is amended by deleting Schedules 2, 9 and 10 and
                  replacing them with the attached Schedules.

         2.       Except as otherwise provided in this Amendment, all terms and
                  conditions of the Agreement remain in full force and effect.

         3.       This Amendment may be executed in a number of counterparts,
                  and all such counterparts taken together shall constitute one
                  and the same agreement.

IN WITNESS WHEREOF the parties have entered into this Amendment to the Agreement
the day and year first above written.

SIGNED BY
a duly authorized person on
behalf of Northern Telecom Limited

                                                     Signature    }
                                                                  -------------

                                                     Name         }
                                                                  -------------

                                                     Position     }
                                                                  -------------

                                                     Signature    }
                                                                  -------------

                                                     Name         }
                                                                  -------------

                                                     Position     }
                                                                  -------------
SIGNED BY
a duly authorized person on behalf of
interWAVE Communications International

                                                     Signature    } /s/: xxxx
                                                                  -------------

                                                     Name         }Pricilla Lu
                                                                  -------------

<PAGE>

                                                     Position    }Chairman,
                                                                 CEO, President
                                                                 ---------------
<PAGE>

SCHEDULE 2

1.       PRICES AND PRODUCT DESCRIPTION

         The prices detailed hereunder are firm and fixed for the calendar year
         in which this Agreement commenced (the "Initial Period"). Sixty (60)
         days prior to the expiration of the Initial Period, and each subsequent
         twelve (12) month period the Parties shall review and agree upon the
         prices that shall apply to Goods and Services for the next twelve (12)
         month period. The prices listed below include warranty during the
         Guarantee Period and technical support for 12 months.

         The prices listed below are subject to amendments according to the
         clauses below:

1.0.1    In the event that the market prices have substantially decreased, the
         Purchaser may request good faith efforts from the Supplier to
         re-negotiate prices accordingly. Such price reduction will become
         effective for all following deliveries to the Purchaser.

1.0.2    The Purchaser will discuss with the Supplier any single opportunity for
         the Supplier's. In the event that the single opportunity pricing is
         granted to the Purchaser by the Supplier, it will not impact the
         pricing at that time of other products.

1.0.3    For each of the calendar years, the Purchaser and Supplier will use
         their best efforts to agree upon and execute an amendment to this
         Agreement that sets forth the prices and volume discounts applicable
         for such a calendar year. The Supplier guarantees a minimum of 5%
         decrease of price for the Products from one calendar year to the next.

1.0.4    The Purchaser may agree to fund any cost reduction program with the
         Supplier that provides an in year pay back to the Purchaser. The
         benefit of the cost reduction will be shared equally between the
         Purchaser and the Supplier and will be reflected in revised purchase
         prices by the supplier from the time that the cost reduction is
         realized in the product cost.

1.0.5    The Purchaser may agree to provide to the Supplier, where applicable,
         opportunities to reduce costs by subcontracting to the Purchaser's
         manufacturing facilities.

1.0.6    The Supplier agrees to provide the Purchaser with a monthly status on
         their cost reduction programs in part with the ordering and forecast
         review.

1.0.7    The Supplier represents to the Purchaser that the prices listed herein
         for Goods and Services are no higher than those charged by the Supplier
         to other similar parties who purchase similar goods for resale
         (excluding exceptions for flexibility in markets and for the Customers
         that the Purchaser is not pursuing, and other special circumstances on
         an agreed upon individual basis). At the request of the Purchaser,
         Supplier shall internally review its compliance with this requirement
         on an annual calendar year basis and shall credit any overcharge to the
         Purchaser in accordance with Schedule 1, Clause 24. In any event, the
         Purchaser shall receive a minimum sixty-five (65)% discount off the
         Supplier's then current list prices.

1.0.8    The Supplier shall provide a ten (10%) percent discount on Combos
         ordered for installation into the "Corporate Market Applications" The
         Supplier agrees to provide a 5% discount on Base Stations for accounts
         and bids made by the Purchaser prior to the signing of this amendment
         but not going forward.

1.0.9    The supplier will provide the following discounts for 1999. These
         discounts are not incremental to the ten (10%) percent discount on
         Combos for "Corporate Market Applications"

                                                                          1
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------- -----------------------------------------------
$0 to $7.0M                             1998 prices (Net of credit)
--------------------------------------- -----------------------------------------------
<S>                                     <C>
$7.0M to $15.0M                         8% discount

--------------------------------------- -----------------------------------------------
$15.0M and over                         12% discount including Combos
--------------------------------------- -----------------------------------------------
</TABLE>

                                                                          2
<PAGE>

1.1      Baseline Prices for Goods

<TABLE>
<CAPTION>
------------------------------------------------------------------------- ------------------------------- -----------------------
DESCRIPTION OF GOODS                                                      PART NUMBER                     PRICE (US$)
------------------------------------------------------------------------- ------------------------------- -----------------------
<S>                                                                       <C>                             <C>
WAVEXpress 1-TRX BTS (900MHz)                                             M5120A                                          $9,975
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 2-'TRX BTS (900MHz)                                            M5220A                                         $14,963
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 3-TRX BTS (900MHz)                                             M5320A                                         $22,444
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 1-TRX BTS (1800MHz)                                            M5122                                           $9,975
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 2-TRX BTS (1800MHz)                                            M5222                                          $14,963
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 3-TRX BTS (1800MHz)                                            M5322                                          $22,444
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 1-TRX BTS (1900MHz)                                            M5124                                           $9,975
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 2-TRX BTS (1900MHz)                                            M5224                                          $14,963
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress 3-TRX BTS (1900MHz)                                            M5324                                          $22,444
------------------------------------------------------------------------- ------------------------------- -----------------------
TurboWAVE 4 Watt(900 MHz)                                                 M640154                                         $3,990
------------------------------------------------------------------------- ------------------------------- -----------------------
TurboWAVE 8 Watt(900 MHz)                                                 M640157                                         $3,990
------------------------------------------------------------------------- ------------------------------- -----------------------

------------------------------------------------------------------------- ------------------------------- -----------------------
TurboWAVE 4 Watt (1800 MHz)                                               M640159                                         $3,990
------------------------------------------------------------------------- ------------------------------- -----------------------
TurboWAVE 8 Watt (1800 MHz)                                               M640160                                         $3,990
------------------------------------------------------------------------- ------------------------------- -----------------------

------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 1-TRX 2W (900 MHz)                                                 tbd                                            $27,360
------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 2-TRX 2W (900 MHz)                                                 tbd                                            $34,865
------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 1-TRX 2W (1800 MHz)                                                tbd                                            $27,360
------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 2-TRX 2W (1800 MHz)                                                tbd                                            $34,865
------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 1-TRX 2W (1900 MHz)                                                tbd                                            $27,360
------------------------------------------------------------------------- ------------------------------- -----------------------
BSPLUS 2-TRX 2W (1900 MHz)                                                tbd                                            $34,865
------------------------------------------------------------------------- ------------------------------- -----------------------

------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress BSC-11 (2 E1)                                                  See Config Guide                               $14,060
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress BSC-32 (5 E1)                                                  M5130                                          $23,608
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXpress BSC-53 (8 E1)                                                  tbd                                            $33,155
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 1-TRX (900 MHz)                                                     M5150A                                         $13,618
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 2-TRX (900 MHz)                                                     M5152A                                         $18,611
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 1-TRX (1800 MHz)                                                    M5152                                          $18,611
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 1-TRX (1800 MHz)                                                    M5252                                          $13,618
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 1-TRX (1900 MHz)                                                    M5154                                          $18,611
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo 2-TRX (1900 MHz)                                                    M5254                                          $13,618
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXchange NSS -11 (2 E1)                                                See Config Guide                               $12,350
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXchange NSS -32 (5 E1)                                                M5060                                          $21,375
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXchange NSS -53 (8 E1)                                                tbd                                            $30,400
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEView,OMC-Ultra 10                                                     M640191                                        $22,487
------------------------------------------------------------------------- ------------------------------- -----------------------

------------------------------------------------------------------------- ------------------------------- -----------------------
Combo S/W - 1 TRX                                                         S500200N                                        $6,983
------------------------------------------------------------------------- ------------------------------- -----------------------
Combo S/W - 2 TRX                                                         S500300N                                       $12,487
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXchange NSS S/W- Base                                                 S500400N                                       $27,712
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEXchange NSS S/W- Base                                                 S500500N                                        $3,325
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEView,OMC-200 S/W - Base                                               S500600N                                       $10,474
------------------------------------------------------------------------- ------------------------------- -----------------------
WAVEView,OMC-200 S/W - per TRX (not to exceed $70k/ OMC)                  S500700N
------------------------------------------------------------------------- ------------------------------- -----------------------
</TABLE>

                                                                          3
<PAGE>

         1.21.2   Prices for Software Release Upgrades

                    The fee for upgrading from Release 4.x to 5.x is as follows-
                        US $400          per TRX for the BSS
                        US $100          per TRX for the OSS
                        US $1000         per TRX for the NSS/Combo

         1.3      PRICES FOR ENGINEERING SERVICES

                  EMERGENCY CALL OUT SERVICES *
<TABLE>
<CAPTION>
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
EMERGENCY CALL OUT             STANDARD                WEEKNIGHTS            NIGHTS/WEEKENDS                SUNDAYS/HOLIDAYS
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
($/HOUR)                                               8AM-5PM               5PM-11PM                       11PM-8AM
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
<S>                            <C>                     <C>                   <C>                            <C>
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Junior Engineer                $90                     $110                  $125                           $150
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Engineer                       $110                    $130                  $150                           $185
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Sr. Engineer/Spec.             $150                    $180                  $185                           $250
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Project Manager                $190                    $225                  $250                           $315
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
</TABLE>

                      *Rates do not include transportation, nor a Per Diem for
                      food and lodging, nor out-of-pocket expenses for personnel
                      rendering such services. Minimum 4 hour call out.

                      LEVEL 1 CALL-IN SUPPORT*
<TABLE>
<CAPTION>
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
CALL IN                        STANDARD                WEEKNIGHTS            NIGHTS/WEEKENDS                SUNDAYS/HOLIDAYS
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
($/HOUR)                                               8AM-5PM               5PM-11PM                       11PM-8AM
<S>                            <C>                     <C>                   <C>                            <C>
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Sr. Engineer/Spec.             $150                    $180                  $185                           $250
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
Project Manager                $190                    $225                  $250                           $315
------------------------------ ----------------------- --------------------- ------------------------------ -----------------------
</TABLE>

                      *Purchaser shall reimburse Supplier for support provided
                      that is deemed not consistent with the responsibilities of
                      the Supplier for support. This shall include, but not be
                      limited to, supporting Level 1 type issues such as
                      configuration, installation and commissioning as well as
                      supporting non-Supplier provided equipment.

                                                                          4
<PAGE>

1.4      PRICES FOR SPARES

<TABLE>
<CAPTION>

         ---------------------------------------------------------------------------------------------------------------------------
         PART NUMBER                       DESCRIPTION OF FIELD REPLACEABLE UNIT                                  SPARES PRICE (US$)
         ---------------------------------------------------------------------------------------------------------------------------
         <S>                               <C>                                                                    <C>
         M340220                           Clock, 13MHz                                                                      $1,302
         ---------------------------------------------------------------------------------------------------------------------------
         M340128                           E1, Trunk, 120 Ohm for BTS                                                        $5,387
         ---------------------------------------------------------------------------------------------------------------------------
         M340126                           E1, Trunk, 120 Ohm for BSC or MSC                                                 $5,387
         ---------------------------------------------------------------------------------------------------------------------------
         M340129                           E1, Trunk, 75 Ohm for BTS                                                         $5,387
         ---------------------------------------------------------------------------------------------------------------------------
         M340127                           E1, Trunk, 75 Ohm for BTS or MSC                                                  $5,387
         ---------------------------------------------------------------------------------------------------------------------------
         M640180                           E1, Abis with 2 Traus, 120 Ohm for BSC                                            $7,980
         ---------------------------------------------------------------------------------------------------------------------------
         M640181                           E1, Abis with 2 Traus, 75 Ohm for BSC                                             $7,980
         ---------------------------------------------------------------------------------------------------------------------------
         M640182                           E1, Abis with 4 Traus, 120 Ohm for BSC                                           $10,735
         ---------------------------------------------------------------------------------------------------------------------------
         M640183                           E1, Abis with 4 Traus, 75 Ohm for BSC                                            $10,735
         ---------------------------------------------------------------------------------------------------------------------------
         M640178                           E1, PSTN w/ DSP, 120 Ohm for MSC                                                  $7,980
         ---------------------------------------------------------------------------------------------------------------------------
         M640179                           E1, PSTN w/ DSP, 75 Ohm for MSC                                                   $7,980
         ---------------------------------------------------------------------------------------------------------------------------
         M340123                           IWP W/O Hard disk                                                                 $3,040
         ---------------------------------------------------------------------------------------------------------------------------
         tbd                               IWP 64 MB, 810 w/HD                                                               $3,772
         ---------------------------------------------------------------------------------------------------------------------------
         M640034                           Power supply 350W, Hi24, 115v AC                                                  $1,302
         ---------------------------------------------------------------------------------------------------------------------------
         M640035                           Power supply 350W, Hi24, 230v AC                                                  $1,302
         ---------------------------------------------------------------------------------------------------------------------------
         M640026                           Power supply 350W, Hi24, -48V DC                                                  $1,302
         ---------------------------------------------------------------------------------------------------------------------------
         M640027                           Power Supply 50A, 115V AC                                                         $1,577
         ---------------------------------------------------------------------------------------------------------------------------
         M640028                           Power Supply 50A, 230V AC                                                         $1,577
         ---------------------------------------------------------------------------------------------------------------------------
         M340103                           RFD, 900 MHz                                                                      $2,993
         ---------------------------------------------------------------------------------------------------------------------------
         M340088                           RFD, 1800 MHz                                                                     $2,993
         ---------------------------------------------------------------------------------------------------------------------------
         M340119                           RFD, 1900 MHz                                                                     $2,993
         ---------------------------------------------------------------------------------------------------------------------------
         M640116                           TRX 900 MHz                                                                       $7,481
         ---------------------------------------------------------------------------------------------------------------------------
         M640117                           TRX 1800 MHz                                                                      $7,481
         ---------------------------------------------------------------------------------------------------------------------------
         M640145                           TRX 1900 MHz                                                                      $7,481
         ---------------------------------------------------------------------------------------------------------------------------
         M640025                           Fan, 12V Power Supply                                                               $428
         ---------------------------------------------------------------------------------------------------------------------------
         M640021                           Cable kit, full set, indoor                                                         $428
         ---------------------------------------------------------------------------------------------------------------------------
         M640047                           BTS Chassis                                                                       $1,758
         ---------------------------------------------------------------------------------------------------------------------------
         M640048                           BSC Chassis                                                                      $1,758i
         ---------------------------------------------------------------------------------------------------------------------------
         M640173                           Front Panel Blanks (4 pack)                                                        70.00
         ---------------------------------------------------------------------------------------------------------------------------
         M640055                           Wall Mount Kit                                                                      $214
         ---------------------------------------------------------------------------------------------------------------------------
         M640050                           Rack Mount kit 90'                                                                  $219
         ---------------------------------------------------------------------------------------------------------------------------
         M640065                           Table Mount Kit                                                                      $95
         ---------------------------------------------------------------------------------------------------------------------------

</TABLE>

                                                                               5
<PAGE>

1.5      PRICES FOR POST GUARANTEE REPAIR SERVICE

<TABLE>
<CAPTION>

----------------------------------------------------------------------------------------------------------------------------
Part Number                       Description of Field Replaceable Unit                                  Repair Price (US$)
----------------------------------------------------------------------------------------------------------------------------
<S>                               <C>                                                                    <C>
M340220                           Clock, 13MHz                                                                         $600
----------------------------------------------------------------------------------------------------------------------------
M340014                           E-l, Long Haul, 2 Port                                                             $1,900
----------------------------------------------------------------------------------------------------------------------------
M340098                           E-1 with 2 TRAUS                                                                   $3,200
----------------------------------------------------------------------------------------------------------------------------
M340121                           IWP                                                                                $1,300
----------------------------------------------------------------------------------------------------------------------------
M640034                           Power supply 350W, Hi24, 115v AC                                                     $450
----------------------------------------------------------------------------------------------------------------------------
M640035                           Power supply 350W, Hi24, 230v AC                                                     $450
----------------------------------------------------------------------------------------------------------------------------
M640026                           Power supply 350W, Hi24, -48V DC                                                     $450
----------------------------------------------------------------------------------------------------------------------------
M640027                           Power Supply 50A, 115V AC                                                            $500
----------------------------------------------------------------------------------------------------------------------------
M640028                           Power Supply 50A, 230V AC                                                            $500
----------------------------------------------------------------------------------------------------------------------------
M340063                           RF Distribution 900 MHz                                                              $350
----------------------------------------------------------------------------------------------------------------------------
M340088                           RF Distribution 1800 MHz                                                             $350
----------------------------------------------------------------------------------------------------------------------------
M340119                           RF Distribution 1900 MHz                                                             $350
----------------------------------------------------------------------------------------------------------------------------
M640116                           TRX 900 MHz                                                                        $2,500
----------------------------------------------------------------------------------------------------------------------------
M640117                           TRX 1800 MHz                                                                       $2,500
----------------------------------------------------------------------------------------------------------------------------
M640145                           TRX 1900 MHz                                                                       $2,500
----------------------------------------------------------------------------------------------------------------------------
M640025                           Fan, 12V Power Supply                                                                 N/A
----------------------------------------------------------------------------------------------------------------------------
M640021                           Cable kit, full set, indoor                                                           N/A
----------------------------------------------------------------------------------------------------------------------------
M640048                           WAVEXpress Chassis                                                                    N/A
----------------------------------------------------------------------------------------------------------------------------

</TABLE>

1.6      PRICES FOR TRAINING

         Customer Training will be provided if available resources permit as it
         is expected that Purchaser will train its own personnel and personnel
         of its Customers.

<TABLE>
<CAPTION>

        ------------------------------------------------------------------------------------------------------------------
                                                                                                             PRICE
        SERIES             COURSE                                                                DAYS        (PER STUDENT)
        ------------------------------------------------------------------------------------------------------------------
        <S>                <C>                                                                   <C>         <C>
        T100               GSM OVERVIEW                                                            2         $1000USD
        ------------------------------------------------------------------------------------------------------------------
        T300               OMC SYSTEM ADMINISTRATION                                               3         $1500USD
        ------------------------------------------------------------------------------------------------------------------
        T400               OMC-RADIO NETWORK OPERATIONS                                            3         1500USD
        ------------------------------------------------------------------------------------------------------------------
        T500               BSS OPERATIONS & MAINTENANCE                                            3         $1500USD
        ------------------------------------------------------------------------------------------------------------------
        T600               BSS INSTALLATION & COMMISSIONING                                        1         $500USD
        ------------------------------------------------------------------------------------------------------------------
        T700               NIB OPERATIONS                                                          5         $2500USD
        ------------------------------------------------------------------------------------------------------------------
        T800               OMC NETWORK OPERATIONS                                                  5         $2500USD
        ------------------------------------------------------------------------------------------------------------------
        T900               WXC SWITCH OPERATIONS & MAINTENANCE                                     5         $2500USD
        ------------------------------------------------------------------------------------------------------------------
        T510               RELEASE 4 BSS DELTA                                                     2         $1000USD
        ------------------------------------------------------------------------------------------------------------------

</TABLE>

         See Supplier's Training Guide for further details.

                                                                               6

<PAGE>

         1.7      PRICES FOR DOCUMENTATION

         A. Training Material

                  Includes Instructor and Student Guide

         B. Documentation Cost

                  $52,500 Annual Fee. All documentation to be distributed on
                  electronic media.

         C. Feature Guide

                  BSS, NSS, and OSS feature guides for each software release

         D. "Nortelization" Cost

                  Where Nortelize means replace with interWAVE specific names,
         the Nortel version of those names, the supplier shall agree to
         "Nortelize", customer documentation as follows:

<TABLE>
<S>                                                                  <C>
                  Initial Customization Setup Fee (NRE type)         $US  30,000

                  For each "set" (defined as document version,
                  a,b,c,d etc.)                                      $US  15,000

</TABLE>

         Where the Supplier issues an unplanned increment to the documentation
         -- for example, to correct errors of documentation, or to document
         changed behavior of the system following patches -- the supplier shall
         provide the "Nortelized" documentation update for that revision at no
         incremental cost to Nortel Networks.

         Each "set" of documents shall consist of the following documents for
         each release:

         Installation and Commissioning guides:
                  WAVEXpress/BTS
                  WAVEXpress/BSC
                  WAVEXchange
         WAVEView/OMCR Setup & System Administration Guide
         WAVEView/OMCR Operations and Maintenance Guide
         Craft PC Guide
         InterWAVE Parameter Dictionary
         BSS Maintenance Guide
         WAVEView System Administrator's Guide
         BSS Network Implementation Guide
         InterWAVE Glossary of Terms

         The Purchaser shall provide a list or mapping of all of the items that
         the Purchaser would like converted from the Supplier's terms to the
         Purchaser's terms to "Nortelize" the documents.

                                                                              7
<PAGE>

         1.8      PRICES FOR GUARANTEE PERIOD EXTENSION

<TABLE>
<CAPTION>
         ---------------------- --------------------------------------- -------------------------------------------------------
                                               STANDARD                                  PERIOD OF EXTENSION
         ---------------------- --------------------------------------- -------------------------- ----------------------------
                                              FIRST YEAR                        ONE YEAR                    TWO YEARS
         ---------------------- --------------------------------------- -------------------------- ----------------------------
         <S>                    <C>                                     <C>                        <C>
         Equipment                  Return to Factory - No Charge            1.33% of Price                   N/A
         ---------------------- --------------------------------------- -------------------------- ----------------------------

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

         1.9      PRODUCT DESCRIPTIONS

                  See Schedule 10

         1.9.1    Notwithstanding Clause 1 above, the prices for individual
                  Purchase Orders once issued shall remain firm and fixed for
                  their duration, unless otherwise provided for by operation of
                  any other term of the Agreement.

         2.0      PRICING OF ENHANCEMENTS

                  2.1      Where the Supplier enhances the Goods above and
                           beyond the requirements of the relevant
                           Specification, including the new features or
                           facilities, the Supplier shall state in writing the
                           effect such enhancement will have on the Goods and
                           what adjustment, if any, will be required to the
                           Agreement. The Supplier shall furnish such details in
                           a time scale agreed between the Parties.

                  2.2      Where the Supplier shows that an enhancement involves
                           a change in the price or lead times for the Goods,
                           the Supplier shall make best efforts as to the
                           reasonableness of the changes arising therefrom.

                  2.3      The Supplier shall demonstrate best faith efforts to
                           ensure that the price for enhancements does not
                           include any work that should be performed under any
                           other term of the Agreement or any Purchase Order.
                           This shall include, but not be restricted to,
                           enhancements in respect of operational support,
                           repair, build management and guarantee.

         3.0      FORECASTING MECHANISM FOR GOODS

                  3.1      DELIVERIES IN 1999. Prior to acceptance by the
                           supplier of any Orders issued by the purchaser, the
                           Parties shall review the Orders on a case by case
                           basis for 1999 to mutually agree upon the monthly
                           Delivery Dates. The monthly forecast(s) for 1999 for
                           Products provided to the supplier other than those
                           forecasts specified as Orders are for informational
                           purposes only. The purchaser further agrees to
                           provide the supplier with the shortfall between firm
                           Orders and monthly/quaterly/annual commitments to
                           purchase. In the second month of the quarter, the
                           Purchaser shall place orders to meet the commitment
                           for the quarter.

                                                                              8
<PAGE>

                  3.2      Deliveries in 2000. Prior to the first day of the
                           ninth month of 1999, the purchaser shall provide to
                           the supplier, a twelve (12) month forecast of the
                           quantities of Products required and the Delivers
                           Dates within each month for such Products commencing
                           in the first month of 2000 (the "Forecast"). This
                           first twelve (12) month Forecast shall include any
                           deliveries for Orders accepted by the purchaser in
                           1999, and by mutual agreement at the time of the
                           Order having a Delivery Date in 2000. Thereafter the
                           purchaser shall provide to the supplier, prior to the
                           first day of each month, an adjusted twelve (12)
                           month rolling Forecast setting forth the Delivery
                           Dates within each month and the unit quantities of
                           Products for such Delivery Dates that the purchaser
                           expects it will Order from the supplier commencing in
                           the first month of 2000.

                  3.3      With respect to Products forecasted for which the
                           purchaser has not issued Orders, the purchaser may
                           adjust the Forecast from one Forecast to the next
                           within the following limitations:

<TABLE>
<CAPTION>
                                    FORECAST MONTH         FORECAST ADJUSTMENT
                                    --------------         -------------------
                                    <S>                    <C>
                                    Month 1-2              zero
                                    Months 3-5             25%
                                    Months 6-12            no limitation
</TABLE>

                  3.4      The purchaser shall make Reasonable Efforts to ensure
                           that the adjustments to the Forecasts pursuant to
                           Article 3.3 shall be no more onerous than the
                           adjustments the purchaser must bear in the normal
                           course of the Purchaser's operations.

                  3.5      The purchaser shall ensure that there are sufficient
                           Orders placed with the supplier in advance of the
                           Delivery Date to provide for the delivery within the
                           Maximum Delivery Period of all of the Products which
                           the purchaser forecasted to be delivered during the
                           first month of each Forecast in accordance with
                           Article 3.3. Except as set forth above, the purchaser
                           shall not be obligated to issues Orders based on
                           Forecasts except as it supports minimum quarterly
                           contractual commitments. For the purposes of this
                           Article 3, the purchaser shall in the normal course
                           place Orders through a central purchaser order point.

                  3.6      The supplier shall accept any Order issued by the
                           purchaser for Products for delivery within the
                           Maximum Delivery Period to the extent such Products
                           were within the most recent Forecast. If the
                           purchaser orders Products in excess of the number of
                           units contained in the Forecast, the supplier and
                           purchaser shall mutually agree on the Delivery Dates
                           of such Orders, but the supplier shall use Reasonable
                           Efforts to ensure that the Delivery Date for Products
                           not Forecasted does not exceed sixty (60) consecutive
                           days. All deliveries of Orders shall be FOB the
                           Shipping Location.

                  3.7      The Purchaser, wherever possible will provide monthly
                           a rolling 12 month forecast, broken down by country,
                           of their requirements as precise as possible of the
                           Goods to the Supplier within forty-five days of
                           execution of this amendment. The Purchaser shall use
                           best efforts to forecast at least the amounts set
                           forth in the Purchase Baseline in Schedule 9. The
                           Supplier will give the Purchaser an overview of their
                           position with respect to supporting compliance into
                           the country's market.

                                                                              9
<PAGE>

SCHEDULE 9

4.0      PURCHASING BASELINE AND EXCLUSIVITIES

         4.1      The Purchaser's Purchase Baseline is defined as follows:

<TABLE>
<CAPTION>
                  -----------------------------------------------------------------------------------------------------
                   USSM                                    1999                             2000
                   <S>                       <C>      <C>     <C>     <C>       <C>      <C>      <C>      <C>
                   Calendar Quarter           Q1       Q2      Q3       Q4      Q1       Q2       Q3       Q4
                   Quarterly Revenue         1.3      2.5     2.7      3.5       5        7        8       10
                   Annual Revenue                                       10                                 31
                   Cumulative Revenue                                   10                                 41
                  -----------------------------------------------------------------------------------------------------
</TABLE>

         4.2      The Purchase Baseline can be adjusted, by good faith
                  negotiations, if any material microcellular product milestones
                  as defined in the Development Plan are not met within 90 days
                  of the target date stated in Schedule 10. It is further agreed
                  that if the Supplier is unable to deliver "support for EFR
                  Ready Hardware in Release 4.5" the purchase baseline for 1999
                  can be reduced by $1 million in each of quarters 3 and 4.
                  Also, if the agreed upon subset of MAP E is not delivered in
                  Release 5 NSS, then the purchase baseline for 2000 can be
                  reduced by $1.25 million per quarter. Furthermore, if the
                  Supplier is unable to meet GPRS, ISUP, and Freq. Hopping for
                  Release 6 the purchase baseline may be reduced by $5.0 million
                  in the second half of the year 2000. These reductions shall
                  not change the conditions in clause 4.3 below.
                  4.2.1    Both companies agree that they will work toward
                           defining and developing solutions to features (such
                           as tromboning ) that are required to meet market
                           opportunities.

         4.3      If the purchases by the Purchaser, during any quarter of 1999
                  or 2000 are less than those indicated in the Purchase Baseline
                  above, the Purchaser shall pay the Supplier, at the end of
                  such quarter, a sum equal to 38.1% of the Price of the
                  shortfall of Goods not purchased by the Purchaser ("Shortfall
                  Payment")

                  4.3.1    To the extent that the Purchaser makes up the
                           shortfall with excess in the following quarter (over
                           the purchase baseline for such following quarter),
                           the Supplier will credit the Purchaser for the
                           shortfall payment.

                  4.3.2    The Purchaser shall not be obligated to pay for any
                           shortfalls due to the Supplier's failure to deliver
                           Goods which meet mutually agreed acceptance criteria.

         4.4      Reflecting the fact that the Purchaser will supply
                  substantial, valuable and proprietary technology, technical
                  information and know-how to the Supplier pursuant to the
                  Technical Information Agreement being entered into between the
                  parties, the Supplier shall be restricted from entering into
                  an OEM or distributor agreement with Nokia or Ericsson until
                  December 31, 1999 ("Limited Exclusivity"). After such time,
                  the Purchaser's Limited Exclusivity shall be terminated only
                  if the annual purchase of Goods by the Purchaser is less than
                  eighty (80%) percent of $50 million, $70 million and $95
                  million at the end of any of the calendar years 2000, 2001, or
                  2002, respectively. The purchases by the Purchaser in excess
                  of $10 million in the year 1999 can be counted towards
                  fulfilling the requirement to purchase 80% of $50 million in
                  the year 2000 to retain the Limited Exclusivity. Any overage
                  in subsequent years will be applied on the same basis. Nothing
                  in this Agreement shall be construed to prevent the Supplier
                  from developing other products, whether or not competing with
                  the Goods, for supply to Nokia or Ericsson or any other
                  purchaser, provided that the Supplier complies with all
                  provisions of this Agreement, the Technical Information
                  Agreement and the Patent License Agreement.

                                                                             10
<PAGE>

                  4.4.1    If. however, the Purchaser's failure to meet an
                           eighty (80%) percent annual target is attributable
                           solely to the Supplier's delay in meeting a material
                           microcellular product milestone, or the Supplier's
                           delay in delivering goods which meet mutually agreed
                           acceptance criteria, the annual period for
                           determining achievement of the annual target shall be
                           extended for the length of such delay.

         4.5      Product markets

                  4.5.1    The Supplier warrants that it has obtained the
                           necessary approvals, including but not limited to GSM
                           11.21 certification, CE Mark, and interconnect. These
                           approvals allow the goods to be sold into many
                           countries. For the countries where the incremental
                           requirements are limited to "paper filings" and not
                           substantive testing and development, the Supplier
                           agrees to support entry into those countries.

                  4.5.2    The Supplier and Purchaser further agree that it will
                           put in place a mechanism by which the two parties can
                           address the requirements needed for the countries
                           where the Supplier currently does not meet all of the
                           requirements to enter the countries.

                  4.5.3    The Supplier and Purchaser agree to use the framework
                           below to identify and classify the countries.

                           4.5.3a   the products may be sold today without
                                    additional regulatory modifications;

                           4.5.3b   the product is being actively marketed, but
                                    where incremental regulatory activities may
                                    be required to sell;

                           4.5.3c   the Purchaser intends to market ultimately,
                                    and where incremental regulatory activities
                                    may be required to sell;

                           4.5.3d   The Purchaser does not plan to market the
                                    products or where the Seller or Purchaser is
                                    legally prohibited from selling the product.

The current view of the markets being addressed is summarized in the table
below:

<TABLE>
<CAPTION>

SECTION 4.5.3aCOUNTRIES             SECTION 4.5.3b COUNTRIES            SECTION 4.5.3c COUNTRIES          SECTION 4.5.3d COUNTRIES
-----------------------             ------------------------            ------------------------          ------------------------
<S>                                 <C>                                 <C>                               <C>
                                    Europe: All countries except        Asia: All countries not           Cuba
Europe: France, United              Serbia                              specifically named
Kingdom, Luxembourg,
Netherlands, Ireland, Austria
Asia: Taiwan, Hong Kong,            Asia: China, India, Philippines,    Caribbean and Latin America:      Iraq
Thailand                            Hong Kong, Taiwan                   All countries not specifically
                                                                        named

Australia                                                                                                 Iran
                                    Americas: Canada, USA, Brazil,                                        Japan
                                    Mexico, French Guiana

Central African Republic, South    Middle East and Africa: All                                            Libya
Africa. Congo, Somalia             countries, unless specifically
                                   excluded
                                                                                                          North Korea

                                                                              11
<PAGE>

                                                                                                          Serbia
                                                                                                          South Korea
                                                                                                          Sudan
                                                                                                          Syria
</TABLE>

         4.5.4    It is understood that the list of countries will change over
                  time. It is agreed that a more precise view of near term
                  requirements for new market entry will be provided as part of
                  the forecast procedure defined in Schedule 2 and regulatory
                  compliance procedures defined in Schedule 1 of this agreement.

                                                                              12
<PAGE>

SCHEDULE 10

5.0      PRODUCT DESCRIPTIONS

EQUIPMENT

<TABLE>
<CAPTION>
<S>                                    <C>
1.   WAVEXpress BTS

     SPECIFICATIONS

     Cellular Standards Supported      ETSI GSM Phase 2
     Features Supported                Base transceiver station (BTS); GSM RF management, data and
                                       fax, short message service, antenna receive diversity, encryption,
                                       optional power supply redundancy
     Transmit RF Frequency             GSM 935- 960 MHz
                                       DCS 1805 - 1880 MHz
     Receive RF Frequency              GSM 890- 915 MHz
                                       DCS1710 - 1785 MHz
     Antenna Power                     Up to 2.0 watts at antenna port (may be extremely amplified
                                       for greater transmit power)
     Cell Size (Range)                 Up to 3 kilometers maximum radius depending on topography
                                       and environment
     Number of TRXs per BTS            1 - 3
     Channels per BTS                  7- 22 simultaneous
     Mobile Stations Supported         GSM/DCS-compliant mobile station (Phase 1, 2 or 2+)
     GSM/PCS Interfaces Supported      Abis and Radio (Phase 2)
     Processors                        Distributed Motorola 68040 and 68360
     Mobile Interfaces Supported       GSM full-rate RF interface, 2400 bps -- 9600 bps transparent
                                       data/FAX
     Trunk Network Interfaces          G.703-compliant. E1, T1 planned
     Power Requirements                Power consumption: 150 watts, 110/220 volts 50-60 Hz ac,
                                       -48 volts dc planned
     Dimensions (h x w x d)            55 x 23 x 41 centimeters (21.5 x 9 x 16 inches)
     Weight                            20 kg (44 lbs.)
     Operating Environment             Temperature: -10DEG. to 45DEG.C
                                       Humidity:    10% to 90% noncondensing,
                                                    10% to 95% noncondensing (outdoor)

2.   WAVEXpress BSC

     SPECIFICATIONS

     Cellular Standards Supported      ETSI GSM Phase 2
     Features Supported                Base station controller (BSC); GSM RF power management,
                                       data and fax, short message service, optional CPU and power
                                       supply redundancy, optional local transcoding (TRAU)
     BTS RF Protocols Supported        GSM 900
                                       DCS 1800
     Number of E1/T1 Ports per BSC     2 - 14
     Number of BTSs per BSC            1 - 20

                                                                              13
<PAGE>

     Number of TRXs per BSC            1 - 20, 1 - 30
     BTSs Supported                    interWAVE WAVEXpress/BTS others supporting GSM Abis
                                       interface (requires verification testing with interWAVE)
     Mobile Stations Supported         GSM/DCS-compliant mobile station (Phase 1, 2 or 2+)
     GSM/PCS Interfaces Supported      A and Abis
     Processors                        Distributed Motorola 68040 and 68360
     Mobile Interfaces Supported       GSM full-rate RF interface, 2400 bps- 9600 bps transparent
                                       data/FAX
     Trunk Network Interfaces          G.703-compliant. El, T1 planned
     Power Requirements                Power consumption: 150 watts, 110/220 volts 50-.60 Hz ac,
                                       -48 volts dc planned
     Dimensions (h x w x d)            55 x 23 x 41 centimeters (21.5 x 9 x 16 inches)
     Weight                            20 kg (44 lbs.)
     Operating Environment             Temperature: -10DEG. to 45DEG.C
                                       Humidity:.   10% to 90% noncondensing,
                                                    10% to 95% noncondensing (outdoor)

3.   TURBOWAVE BTS

     SPECIFICATIONS

     Cellular Standards Supported      ETSI GSM Phase 2
     Features Supported                Base transceiver station (BTS); GSM RF management, data and
                                       fax, short message service, encryption,
                                       optional power supply redundancy
     Transmit RF Frequency             GSM 935 - 960 MHz
                                       DCS 1805- 1880 MHz
     Receive RF Frequency              GSM 890- 915 MHz
                                       DCS 1710 - 1785 MHz
     Antenna Power                     Up to 4.0 watts at antenna port with 2 TRXs and 1 antenna
                                       Up to 8.0 watts at antenna port with 2 TRXs and 2 antenna
                                       Up to 16.0 watts at antenna port with 1 TRX and 1 antenna
     Cell Size (Range)                 Up to 15 kilometers maximum radius depending on topography
                                       and environment
     Number of TRXs per BTS            1 - 2
     Channels per BTS                  7- 14 simultaneous
     Mobile Stations Supported         GSM/DC-compliant mobile station (Phase 1, 2 or 2+)
     GSM/PCS Interfaces Supported      Abis and Radio (Phase 2)
     Processors                        Distributed Motorola 68040 and 68360
     Mobile Interfaces Supported       GSM full-rate RF interface, 2400 bps- 9600 bps transparent
                                       data/FAX
     Trunk Network Interfaces          G.703-compliant E1, T1 planned
     Power Requirements                Power consumption: 250 watts, 110/220 volts 50-60 Hz ac,
                                       -.48 volts dc planned
     Dimensions (h x w x d)            55 x 23 x 41 centimeters
                                       (21.5 x 9 x 16 inches)
     Weight                            20 kg (44 lbs.)
     Operating Environment             Temperature: -10 to 45DEG.C
                                       Humidity:.   10% to 90% noncondensing,
                                                    10% to 95% noncondensing (outdoor)

                                                                              14
<PAGE>

4.   WAVEXCHANGE
     SPECIFICATIONS
     Applications                      GSM mobile networks, wireless local loop, or wireless PBX
                                       adjunct
     Base Functionality                Speech Services: GSM900/DCS1800/PCS1900 (future)
                                       Inter/lntra BSC handover,
                                       Integral VLR/HLR per GSM 3.08 and GSM 9.02 MAP
                                       Call management (GSM 4.08)
                                       Mobility management (GSM 4.08)
                                         -  Ciphering, identification, location update, identification,
                                            IMSI attach/detach, TMS1 reallocation,
                                       BSSMAP per GSM 8.08, both connection/connectionless
                                       Unified OMC, integrating OMC-S/OMC-R applications
                                       Call data records per GSM 12.05, ASCII formatted
                                       Performance per GSM 12.04, with proprietary extensions
                                       Alarm/event management, with proprietary extensions
     Base Platform                     9-slot VME backplane with TDM bus (16 lines x 8Mbps)
                                       IWP Module (68040 CPUI68360 Comm. Proc.)
                                         -  OMC connectivity via Ethernet DB15 connector
                                         -  Craft Interface (RS-232c 9-pin); external alarms (RJ45)
                                         -  Hard disk drive and flash memory
                                       Dual port El/T1 module (68360 Comm. Proc.) planned
                                         -  Support for 14 E1 ports per chassis
                                         -  Integral 64kbps time/space switch"
                                         -  Available with BNC 75 omega or DB15 120 omega connectors
                                         -  Echo cancellation/tones available
                                         -  1->N trunk redundancy (future)
                                       Redundant power supply (optional)
     Services                          Emergency calls
                                       Call Barring (Operator Determined - ODB), GSM 2.88
                                       Call Forwarding Unconditional (CFU - OD), GSM 2.82
                                       Intra WAVEXchange FAX/data services, GSM 2.02/2.03
     Performance                       Call processing capabilities: 100 Erlangs providing -8000 BHCA
                                       Performance goals: per GSM 3.05
     Environmental                     Temperature:  0DEG.C to 45DEG.C
                                       Humidity      0% to 95%, noncondensing

5.   Combo

     SPECIFICATIONS
     Applications                      GSM mobile networks, wireless local loop, or wireless PBX
                                       adjunct
     Base Functionality                Speech Services: GSM900/DCS1800/PCS1900 (future)
                                       Integral VLR/HLR per GSM 3.08 and GSM 9.02 MAP
                                       Call management (GSM 4.08)
                                       Mobility management (GSM 4.08)
                                         -  Ciphering, identification, location update, identification, IMSI
                                            attach/detach, TMSI reallocation,
</TABLE>

                                                                              15
<PAGE>

<TABLE>
<S>                                         <C>
                                                     BSSMAP per GSM 8.08, both connection/connectionless
                                                     Call data records per GSM 12.05, ASCII formatted
                                                     Performance per GSM 12.04, with proprietary extensions
                                                     Alarm/event management, with proprietary extensions
         Features Supported                          GSM RF management, data and fax, short message service,
                                                     encryption,
         Transmit RF Frequency                       GSM 935- 960 MHz
                                                     DCS 1805 - 1880 MHz
         Receive RF Frequency                        GSM 890- 915 MHz
                                                     DCS 1710- 1785 MHz

         Antenna Power                               Up to 16.0 watts at antenna port with 1 TRX and 1 antenna
         Cell Size (Range)                           Up to 15 kilometers maximum radius depending on topography
                                                     and environment
         Number of BTS per Combo                     1 - 3 planned
         Number of TRXs per Combo                    1 - 2, 1 - 10 planned (3TRX per BTS and 1TRX in Combo)
         Channels per Combo                          7 - 14 simultaneous
         Mobile Stations Supported                   GSM/DCS- compliant mobile station (Phase 1, 2 or 2+)
         Base Platform                               9-slot VME backplane with TDM bus (16 lines x 8Mbps)
                                                     IWP Module (68040 CPU/68360 Comm. Proc.)
                                                       - OMC connectivity via Ethernet DB15 connector
                                                       - Craft Interface (RS-232c 9-pin); external alarms (RJ45)
                                                       - Hard disk drive and flash memory
                                                     Dual port E1/T1 module (68360 Comm. Proc.) planned
                                                       - Support for 14 E1 ports per chassis
                                                       - Integral 64kbps time/space switch
                                                       - Available with BNC 75omega or DB15 120omega connectors
                                                       - Echo cancellation/tones available
                                                       - 1->N trunk redundancy (future)
                                                     Redundant power supply (optional)
         Services                                    Emergency calls
                                                     Call Barring (Operator Determined - ODB), GSM 2.88
                                                     Call Forwarding Unconditional (CFU - OD), GSM 2.82
         GSM/PCS Interfaces Supported                Abis and Radio (Phase 2)
         Processors                                  Distributed Motorola 68040 and 68360
         Mobile Interfaces Supported                 GSM full-rate RF interface, 2400 bps - 9600 bps transparent
                                                     data/FAX
         Trunk Network Interfaces                    G.703-compliant. E1, T1 planned
         Power Requirements                          Power consumption: 250 watts, 110/220 volts 50-60 Hz ac,
                                                     -48 volts dc planned
         Dimensions (h x w x d)                      55 x 23 x 41 centimeters (21.5 x 9 x 16 inches)
         Weight                                      20 kg (44 lbs.)
         Operating Environment                       Temperature: -10DEG. to 45DEG.C
                                                     Humidity      10% to 90% noncondensing,
                                                                   10% to 95% noncondensing (outdoor)

6.       WAVEView OMC

         APPLICATIONS
         Configuration Management

                                            -  Region-wide configuration database
                                            -  Modification of network elements and network parameters
                                            -  Remote download of software to network elements

                                                                       16

<PAGE>

                                            -  Audit functions that upload current configuration of network elements
                                            -  Region map that displays the network elements and connectivity
                                            -  Addition and deletion of network elements (MSC, BSC, and BTS)
                                            -  Full support of cell and frequency configuration management
                                            -  Region map displays current network element states
         Fault Management                   -  Real-time monitoring of the network for faults and problems
                                            -  Visual indication of problem areas using detailed views
                                            -  Polling of the wireless access network to determine the status of
                                               the operations and maintenance communication links
                                            -  Maintenance of daily event logs
                                            -  Tracking of active alarm conditions
                                            -  Audible alarms based on severity
                                            -  Clearing and acknowledgment of alarms
                                            -  Alarm seventy can be altered
Performance Management                      -  Collects network performance statistics
                                            -  Building of a knowledge base of network resource usage for
                                               strategic business and network planning decisions
                                            -  Use of performance data for troubleshooting and monitoring
                                               network performance
Data Import and Export                      -  Integrates with existing network management support tools
                                            -  Import cell configuration data from existing cell planning tools
                                            -  Export of network performance data and statistics to cell planning tools
                                            -  Periodic collection BSC/BTS statistics into ASCII files for export to
                                               external tools
                                            -  Export of historical event and alarm logs
Access Security Management                  -  Definition of user access privileges settable by the administrator
                                            -  Definition of different classes of WAVEView users, privileges, and passwords
                                            -  Two levels of security control beyond normal UNIX login security
                                               * Password authorized use of WAVEView
                                               * User restrictions based on domains and object class access control
</TABLE>

                                                                             17

<PAGE>

DEVELOPMENT PLAN

RELEASE 4.5
SCHEDULE
interWAVE's Gate 5 date:             August 31, 1999
interWAVE's GA date:                 October 3l, 1999
Beta software to Nortel:             August 15, 1999
Nortel's VO start date:              September 13, 1999
Nortel's Ramp Start date:            October 15, 1999

RELEASE 4.5 NSS
R2 Country specific variants
MAP/D, per interWAVE Functional Specifications Roaming - 98-WX-2010,
     MAP 98-WX-2000 and SS7 Enhancements for Roaming -
Intelligent Call Management, per interWAVE Functional
     Specification 840165FS-00 Dated 3/16/99.
E164+Handling, per interWAVE Functional Specifications El64
     99-WX-xxx dated 4/9/99 and + Key Handling for GSM Handset
     International Access Prefix dated 3/31/99
RELEASE 4.5 BSS
Enhanced Full Rate Vocoder (EFR)-ready hardware
RELEASE 4.5 OSS
Support for R4.5 NSS & BSS Features.

RELEASE 5
SCHEDULE
interWAVE's Gate 5 date:            November 30, 1999
interWAVE's GA date:                March 17, 2000
Beta software to Nortel:            November 15, 2000
Nortel's VO start date:             January 17, 2000
Nortel's Ramp Start date:           February 28, 2000

RELEASE 5 NSS
R2 and ISDN country specifics
AoC, AoCC, AoCI (CAI) for Prepaid
MAP E, Inter MSC HO*
Full implementation of EFR
American NSS and North American Combo with defined feature set

NSS Capacity Enhancement - 100E NSS
PBX connectivity, ISDN master
Purge VLR
Compliant GSM 12.04 CDR
E1/T1 hot swap
RELEASE 5 BSS
Full implementation of EFR
Static Uplink/downlink volume control
North American BSS, including ANSI BSC and 1900
      MHz BTS with T1
E1/ T1 hot swap
RELEASE 5 OSS
OMC Off-site alarming (pager dial-up modem),
     OMC audible alarm
Call Trace Debugging
Historical Alarm Browser
Improved Manageability of the Turbo
On Line Help
Dual NSS- BSS Actions
Support for R5 NSS & BSS Features

RELEASE 6
SCHEDULE
interWAVE's Gate 5 date:            June 30, 2000
interWAVE's GA date:                September 17, 2000
Beta software to Nortel:            June 16, 2000
Nortel's VO start date:             July 17, 2000
Nortel's Ramp Start date:           August 28, 2000

RELEASE 6 NSS, BSS AND OSS
R2 and ISDN country specifics implementations
ETSI/ANSI ISUP, SSP
Support for Nortel GPRS system (SGSN/GGSN)
IWP Redundancy
Frequency Hopping
High Power Receiver Diversity
Forced Handover
MSC+BSC Combo
SoLSA (subset only for user restriction)
AuC, SMS and EIR support for standalone Networks
Release Link Trunk
Call Intercept

*  - Specific requirements for MAP E shall be confirmed by both parties to
   determine the actual parts of the specs to be included in the release.

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