Document:

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                                                                   EXHIBIT 10.30

                                                                    CONFIDENTIAL

                           MEMORANDUM OF UNDERSTANDING
                                     BETWEEN
                           ACCELERATED NETWORKS, INC.
                                       AND
                        US WEST !NTERPRISE AMERICA, INC.

      This Memorandum of Understanding ("MOU") recognizes the mutual desire by
Accelerated Networks, Inc. ("ANI") and U S WEST !nterprise America, Inc. ("USW")
(together, "the Parties") to create a relationship in which USW will test and
potentially purchase network equipment produced by ANI. This document is solely
intended to facilitate discussions between the parties. This document is not
intended to, and does not create, any legally binding obligations between the
parties except as set forth in the sections pertaining to: Warrant to Purchase
ANI Stock, Confidentiality, Limited Liability and Disclaimer, Publicity and
Arbitration. In addition, this MOU is a non-exclusive agreement, and neither
party is obligated to continue to discuss and/or negotiate with regard to the
subject matter of this document with the other party. This document is
considered Confidential in accordance with the parties' Confidentiality
Agreement dated April 21, 2000; provided, however that ANI shall be entitled to
include in filings with the United States Securities and Exchange Commission a
general description of the relationship contemplated in this MOU and to disclose
the existence and contents of this MOU to its financial and legal advisors,
underwriters, potential investors and their counsel.

      In order to facilitate further discussion and negotiation the Parties have
outlined below the topics currently being discussed.

1.    PRODUCT TESTING.

      (a)   Upon execution of this MOU by both parties, ANI will provide USW
with the MSAP voice gateway, MSAP concentrator and IAD products (the "ANI
Products") listed and in the quantities specified in Exhibit A (the "Evaluation
Products") solely for the purpose of evaluating the ANI Products for use with
USW's DSL and other services ("USW Services"). Such evaluation shall be
performed in accordance with a mutually agreed upon test plan (the "Test Plan")
during the ninety (90) day period following USW's receipt of the Products (the
"Test Period"). ANI and USW will work together to complete the Test Plan in a
timely manner. USW's use of all software and firmware contained in the
Evaluation Products shall be subject to the terms and conditions of ANI's
standard End-User Software License Agreement provided with such Evaluation
Products, such License Agreement to be provided to USW and executed prior to the
delivery of the Evaluation Products. During the Test Period, USW and ANI will
cooperate and will provide each other with all information and technical
assistance necessary to enable USW to appropriately test and evaluate the
Evaluation Products in USW's network environment. USW agrees to use reasonable
efforts to promptly notify ANI of all (i) problems and errors experienced in
connection with integration or deployment of the Evaluation Products into USW's
network environment, (ii) the characteristic conditions and symptoms of the
problems and errors in sufficient detail to allow ANI to recreate the problems
and errors and (iii) recommendations, if any, for changes or modifications to
the ANI Products. In addition, USW agrees to provide ANI with a copy of the test
results and test set-up information relating to the Evaluation Products.

      (b)   The Evaluation Products, any software provided with the Evaluation
Products and all other products or materials furnished by ANI ("ANI Property")
shall (i) be clearly marked or tagged as ANI's property; (ii) be and remain
personal property and not become a fixture to real property; (iii) be subject to
inspection by ANI at any time during normal business with reasonable prior
notice; (iv) be used only for evaluation and testing of the Evaluation Products
in accordance with the Test Plan; (v) be kept free of any liens or encumbrances;
(vi) be kept reasonably separate, given the testing environment, from other
materials, tools or property held by USW; (vii) not be modified in any manner by
USW; (viii) not be rented, sold, leased or otherwise transferred or used for the
benefit of a third party; (ix) not be reverse

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                                                                    CONFIDENTIAL

assembled, reverse compiled or reverse engineered; and (x) be stored in a safe
place and environment and properly maintained at USW's sole cost. USW agrees to
treat and maintain the ANI Property with at least the same degree of care as USW
would its own valuable equipment. In the event that USW damages any of the ANI
Property, USW agrees to purchase the damaged ANI Property at ANI's cost for such
property. ANI shall retain and exclusively own all right, title and interest
including, without limitation, all patent rights, copyrights, mask work rights,
trademark rights, trade secret rights, and all other intellectual and industrial
property rights of any kind anywhere in the world ("Proprietary Rights") in and
to the ANI Property. At the end of the Test Period, USW shall return or purchase
the ANI Property. USW waives any legal or equitable right it may have to
withhold the ANI Property and, upon request by ANI, agrees to execute all
documents or instruments evidencing ANI's ownership of the ANI Property.

      (c)   Any employee or agent of ANI that is present on USW's premises for
purposes of participating in the testing and/or evaluation of the Evaluation
Products will comply with the USW safety regulations and will comply with any
directions provided by USW representatives concerning behavior at USW locations.

      (d)   If any of the Evaluation Products fails in some material respect to
meet the standards set forth in the Test Plan, USW shall provide ANI with a
detailed description of any such failures in a manner sufficient to allow ANI to
reproduce the failure. ANI will be allowed a reasonable period of time, but in
any event not less than thirty (30) days, to correct the failures specified by
USW. USW shall cooperate and provide ANI with reasonable assistance in
identifying the source of the failure(s) and making the necessary corrections to
the applicable ANI Products. Upon completion of such corrections, USW shall be
permitted an additional period of thirty (30) days in which to evaluate the
Evaluation Products.

2.    USW PURCHASE PROCESS. USW has already issued a Request for Information
(RFI) asking vendors engaged in developing or producing products related to
creating voice over DSL services or related gateway products to provide
information on those products to USW for evaluation. ANI has responded to the
RFI, and the product testing described in section 1 above is part of that
process. After evaluating the ANI Evaluation Products, as well as the products
and information provided by other vendors, USW will make a determination
concerning which vendor or vendors it will consider as potential suppliers for
its equipment needs. If the ANI products are positively evaluated during the
testing process described above, ANI will be in a good position to be considered
as a potential supplier to USW and to engage with USW in negotiating a
definitive supplier or distribution agreement.

3.    WARRANT TO PURCHASE ANI STOCK. At the time that ANI signs the underwriting
agreement with its lead underwriters for its initial public offering and subject
to USW's payment to ANI of five thousand dollars ($5,000), ANI will issue to
USW, or its designee, a warrant (the "Warrant") in substantially the form
attached hereto as Exhibit B to purchase up to $ 3,000,000 of ANI common stock
at the initial public offering price. In the event ANI fails to complete its
initial public offering during the term of this MOU, ANI shall have no
obligation to issue the Warrant to USW.

4.    TERM. This MOU will commence on the date this MOU is signed by both
parties and will continue for a period of ninety (90) days unless extended
pursuant to paragraph 1 or by mutual agreement of the parties or earlier
terminated by either party upon ten (10) days prior written notice.

5.    CONFIDENTIALITY. USW acknowledges that, in the course of using the
Evaluation Products, it may obtain information relating to the ANI Products
and/or ANI including, without limitation, product features and mode of
operation, product test results and performance benchmarks, this MOU, trade
secrets, know-how, inventions (whether or not patentable), techniques,
processes, programs, ideas, algorithms, schematics, testing procedures, software
design and architecture, computer code, documentation and design and functional
specifications ("Proprietary Information"). USW will take all reasonable
precautions to protect the Proprietary Information including, without
limitation, all precautions USW takes with respect to its own confidential
materials of like kind. In addition, USW will not use or disclose any
Proprietary Information nor disclose the terms or subject matter of this MOU,
except to the extent necessary to evaluate internally the Evaluation Products.
Any employee of USW given access to any of the

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Proprietary Information must have a legitimate "need to know" and must be
subject to a written agreement (at any time prior to such access), protecting
the confidentiality, and restricting the disclosure and use, of third party
confidential or proprietary information disclosed to USW. Neither party will
make any disclosure to any third party regarding this MOU or discussions between
the parties relating to the activities and transactions contemplated herein or
the Purchase Agreement unless both parties agree to such disclosure in writing,
provided, however that ANI shall be entitled to include in filings with the
United States Securities and Exchange Commission a general description of the
relationship contemplated in this MOU and to disclose the existence and contents
of this MOU to its financial and legal advisors, underwriters, potential
investors and their counsel. The obligations under this paragraph 5 will
continue for a period of three (3) years following termination or expiration of
this MOU.

6.    LIMITED LIABILITY; DISCLAIMER. THE EVALUATION PRODUCTS ARE PROVIDED
"AS-IS" WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NON-INFRINGEMENT. EXCEPT IN THE EVENT OF A BREACH OF SECTION 5,
NEITHER PARTY BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, EXEMPLARY OR STATUTORY DAMAGES WITH RESPECT TO THE
PERFORMANCE OF THEIR OBLIGATIONS HEREUNDER, EVEN IF ADVISED OF THE POSSIBILITY
OF SAME. EXCEPT FOR A PARTY'S CONFIDENTIALITY OBLIGATIONS, NOTWITHSTANDING
ANYTHING ELSE IN THIS MOU OR OTHERWISE, NEITHER PARTY WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS MOU UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY AMOUNTS IN EXCESS OF
PURCHASE PRICE OF THE EVALUATION PRODUCTS.

7.    PUBLICITY. Upon commencement of the Test Period, ANI and USW agree to
issue a joint press release, subject to the approval of both parties, announcing
this MOU and the relationship contemplated thereby. Except to the extent
necessary under applicable laws, the parties agree that all subsequent press
releases or other publicity and public disclosures relating to the existence or
substance of the matters contained herein shall not be released without the
prior written approval of both parties.

8.    GENERAL. Neither this MOU, nor any activities described herein shall be
construed to create a partnership, joint venture, franchise, agency or other
such relationship. Except as expressly set forth herein, this MOU represents a
non-exclusive relationship and nothing shall preclude a party from entering into
a similar relationship with other parties. This MOU shall be governed in all
respects by the laws of the State of California and the federal laws of the
United States, without regard to conflicts of laws provisions thereof. The sole
jurisdiction and venue for actions related to the subject matter hereof shall be
the state and federal courts in Los Angeles County, California, and both parties
hereby consent to such jurisdiction and venue. This MOU constitute the entire
agreement between the parties respecting the subject matter hereof, and merges
all prior and contemporaneous communications, both written and oral. This MOU
may not be modified except by written agreement signed on behalf of ANI and USW
by their authorized representatives.

9.    ARBITRATION. Any claim, controversy or dispute between the parties, their
agents, employees, officers, directors or affiliated agents ("Dispute"), shall
be resolved by arbitration conducted by a single arbitrator engaged in the
practice of law and knowledgeable in the applicable areas of law, under the then
current Commercial Arbitration rules of the American Arbitration Association.
The Federal Arbitration Act, 9 U.S.C. Sections 1-16, not state law, shall govern
the arbitrability of all Disputes. The arbitrator shall have authority to award
compensatory damages only. The arbitrator's award shall be final and binding and
may be entered in any court having jurisdiction thereof. Each party shall bear
its own costs and attorneys' fees, and shall share equally in the fees and
expenses of the arbitrator. The laws of the State of California shall govern the
construction and interpretation of the Agreement, and the arbitration shall
occur in Los Angeles, California. It is expressly agreed that either party may
seek injunctive relief in an appropriate court of law or equity pending an award
in arbitration.

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                                                                    CONFIDENTIAL

        The parties acknowledge acceptance of the terms of this MOU by their
signatures below:

ACCELERATED NETWORKS, INC.                    U S WEST !NTERPRISE AMERICA, INC.
By: /s/ Suresh Nihalani                       By: /s/ Steve Starliper
Name: Suresh Nihalani                         Name: Steve Starliper
Title: President and CEO                      Title: V.P.
Date: May 10, 2000                            Date: May 10, 2000
---------------------------------------       ---------------------------------

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                                   Exhibit B

BOTH THE TRANSFER OF THIS WARRANT AND THE TRANSFER OF THE SHARES ISSUABLE UPON
EXERCISE OF THIS WARRANT ARE SUBJECT TO CERTAIN RESTRICTIONS CONTAINED HEREIN
AND IN THAT CERTAIN SECOND RESTATED INVESTORS RIGHTS AGREEMENT DATED AS OF
FEBRUARY 18, 2000, AMONG THE COMPANY AND CERTAIN OF ITS SHAREHOLDERS, AS AMENDED
FROM TIME TO TIME.

THIS WARRANT AND THE SHARES INTO WHICH IT IS EXERCISABLE HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OR HYPOTHECATED ABSENT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED
UNDER SUCH ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.

                           ACCELERATED NETWORKS, INC.

                        Warrant to Purchase Common Stock

Warrant Certificate No. 2

                        VOID AFTER 5:00 P.M. PACIFIC TIME
                               ON _________, 2002

        THIS CERTIFIES that, for value received, U S WEST Internet Ventures,
Inc., a Colorado corporation (the "Holder"), is entitled, subject to the terms
and conditions set forth below, to purchase from Accelerated Networks, Inc., a
California corporation (hereinafter called the "Company"), at the Warrant Price
(as defined below), from time to time, but in any event at or prior to 5:00 p.m.
Pacific time on the Expiration Date (as defined below), the Warrant Shares (as
defined below).

        1. Definitions.

               (a) The "Expiration Date" shall be the second anniversary date of
the Issuance Date.

               (b) The "Warrant Price" per Warrant Share shall be the price per
share of the Company's Common Stock sold in the Company's initial public
offering.

               (c) The "Warrant Shares" issuable upon exercise of this Warrant
shall be ____________________ (_______) shares of the Company's Common Stock.

               (d)    The "Issuance Date" shall be _________, 2000.

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        2. Exercise of Warrant and Limitations on Transfer of Shares.

               (a) The exercise of the purchase rights in whole or in part
evidenced by this Warrant shall be effected by: (a) (i) the surrender of this
Warrant, together with a duly executed copy of the form of Notice of Exercise
attached hereto, to the Company at its principal offices and (ii) the delivery
of the Warrant Price by check or bank draft payable to the Company's order or by
wire transfer in immediately available funds for the number of shares for which
the purchase rights hereunder are being exercised; or (b) the surrender of this
Warrant, together with a duly executed copy of the form of Notice of Net
Exercise attached hereto, to the Company at its principal offices (the "Net
Exercise Right"). Upon exercise of this Net Exercise Right, the Holder shall be
entitled to receive that number of shares of the Company's Common Stock computed
by using the following formula:

                                       Y   =    X(A-B)
                                                ------
                                                  A

Y = the number of Warrant Shares to be issued to the Holder based on this
    exercise.

A = the Fair Market Value (as defined below) of one share of the
    Company's Common Stock on the date of exercise of this Warrant.

B = The Warrant Price for one Warrant Share under this Warrant.

X = The number of Warrant Shares purchasable under this Warrant or, if
    only a portion of the Warrant is being exercised, the portion of the
    Warrant being canceled (at the date of such calculation).

        If the above calculation results in a negative number, then no Warrant
Shares shall be issued or issuable upon exercise of this Warrant pursuant to the
Net Exercise Right.

        "Fair Market Value" of a Warrant Share shall mean:

               (1)    If the Common Stock is traded on a securities exchange or
                      through the Nasdaq National Market, the value shall be
                      deemed to be the average of the closing prices of the
                      Common Stock on such exchange over the thirty (30)
                      calendar day period ending three (3) days prior to the
                      exercise date;

               (2)    If the Common Stock is not so traded but is actively
                      traded over-the-counter, the value shall be deemed to be
                      the average of the closing bid or sale prices (whichever
                      is applicable) over the thirty (30) calendar day period
                      ending three (3) days prior to the exercise date; and

               (3)    If there is no active public market, the value shall be
                      the fair market value thereof, as determined in good faith
                      by a majority of the Board of Directors.

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        In the event of any exercise of the rights represented by this Warrant,
a certificate or certificates for the Warrant Shares so purchased, registered in
the name of the Holder, or its nominee or other party designated in the purchase
form by the Holder hereof, shall be delivered to the Holder as soon as is
reasonably practicable after the date in which the rights represented by this
Warrant shall have been so exercised; and, unless this Warrant has expired or
has been exercised in full, a new Warrant representing the number of shares
(except a remaining fractional share), if any, with respect to which this
Warrant shall not then have been exercised shall also be issued to the Holder
within such time. (All other terms and conditions of such new Warrant shall be
identical to those contained herein, including, but not limited to the effective
date hereof.) The person in whose name any certificate for shares is issued upon
exercise of this Warrant shall for all purposes be deemed to have become the
Holder of record of such shares on the date on which this Warrant was
surrendered and payment of the Warrant Price, except that, if the date of such
surrender and payment is a date on which the stock transfer books of the Company
are closed, such person shall be deemed to have become the Holder of such shares
at the close of business on the next succeeding date on which the stock transfer
books are open. No fractional shares shall be issued upon exercise of this
Warrant and no payment or adjustment shall be made upon any exercise on account
of any cash dividends on the shares issued upon such exercise. If any fractional
interest in a share would, except for the provision of this Section 2, be
delivered upon such exercise, the Company, in lieu of delivery of a fractional
share thereof, shall pay to the Holder an amount in cash equal to the current
fair market value of such fractional share as determined as provided above.

               (b) The holder agrees not to make any disposition of all or any
portion of the Warrant Shares for a period of one (1) year after the closing of
the Company's initial public offering; provided, that the holder (and any
permitted assignee of this Warrant and the rights hereunder) shall be entitled
to transfer such Warrant Shares to an affiliate (as defined in Rule 405
promulgated under the Securities Act of 1933, as amended).

        3. Stock Splits, Consolidation; Reservation of Shares; Issuance Tax and
Closing of Books.

               3.1 If the Company at any time while this Warrant, or any portion
thereof, remains outstanding and unexpired shall, by stock split, combination,
reclassification or otherwise, change any of the securities as to which purchase
rights under this Warrant exist into the same or a different number of
securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities which
were subject to the purchase rights under this Warrant immediately prior to such
stock split, combination, reclassification or other change and the Warrant Price
therefore shall be appropriately adjusted, all subject to further adjustment as
provided herein.

               3.2 The Company will at all times through the expiration of the
Warrant term, reserve and keep available out of its authorized capital stock
solely for the purpose of issue upon the exercise of this Warrant as herein
provided, such number of shares as shall then be issuable upon the exercise of
this Warrant. The Company shall from time to time in accordance with applicable
law increase the authorized amount of its capital stock if at any time the
number of shares remaining unissued and available for issuance shall not be
sufficient to permit exercise of

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this Warrant. The Company covenants that all shares which shall be so issued
shall be duly and validly issued and fully paid and nonassessable and free from
all taxes, liens and charges with respect to the issue thereof, and, without
limiting such action as may be necessary to assure that all such shares may be
so issued without violation of any applicable law or regulation, or of any
requirement of any national securities exchange upon which shares of capital
stock of the Company may be listed.

               3.3 The issuance of certificates for shares upon exercise of this
Warrant shall be made without charge to the holder of this Warrant for any
issuance tax in respect thereof provided that the Company shall not be required
to pay any tax which may be payable in respect of any transfer involved in the
issuance and delivery of any certificate in a name other than that of Holder of
this Warrant.

               3.4 The Company will at no time close its transfer books against
the transfer of the shares issued or issuable upon the exercise of this Warrant
in any manner which interferes with the timely exercise of this Warrant.

               3.5 If at any time or from time to time there shall be a
recapitalization of the Common Stock (other than a subdivision, combination or
merger or sale of assets transaction) provision shall be made so that the Holder
shall thereafter be entitled to receive upon exercise of this Warrant the number
of shares of stock or other securities or property of the Company or otherwise,
to which a holder of Common Stock deliverable upon exercise would have been
entitled on such recapitalization. In any such case, appropriate adjustment
shall be made in the application of the provisions of this Section 3.5 with
respect to the rights of the Holder after the recapitalization to the end that
the provisions of this Section 3.5 (including adjustment of the Warrant Price
then in effect and the number of shares purchasable upon exercise of this
Warrant) shall be applicable after that event as nearly equivalent as may be
practicable.

        4. Notice of Record Dates. In the event of:

               4.1 any taking by the Company of a record of the holders of any
class of securities for the purpose of determining the holders thereof who are
entitled to receive any dividend or other distribution (other than cash
dividends out of earned surplus), or any right to subscribe for, purchase or
otherwise acquire any shares of stock of any class or any other securities or
property, or to receive any other right, or

               4.2 any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any
transfer of all or substantially all the assets of the Company to or
consolidation or merger of the Company with or into any other entity, or

               4.3 any voluntary or involuntary dissolution, liquidation or
winding-up of the Company,

               4.4 then and in each such event the Company will give notice to
the Holder of this Warrant specifying (i) the date on which any such record is
to be taken for the purpose of such dividend, distribution or right and stating
the amount and character of such dividend,

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distribution or right, and (ii) the date on which any such reorganization,
reclassification, recapitalization, transfer, consolidation, merger,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the Holders of record will be entitled to exchange
their shares for securities or other property deliverable upon such
reorganization, reclassification, recapitalization, transfer, consolidation,
merger, dissolution, liquidation or winding-up. Such notice shall be given at
least 20 days and not more than 90 days prior to the date therein specified, and
such notice shall state that the action in question or the record date is
subject to the effectiveness of a registration statement under the Securities
Act of 1933, as amended (the "Securities Act") or to a favorable vote of
stockholder, if either is required.

        5. No Stock Rights or Liabilities. Except as expressly provided herein,
this Warrant shall not entitle the Holder to any voting rights or other rights
as a stockholder of the Company. No provision hereof, in the absence of actual
exercise hereof by the holder hereof as provided herein, and no mere enumeration
hereon of the rights or privileges of the Holder hereof, shall give rise to any
liability of such Holder for the Warrant Price or as a stockholder of the
Company, whether such liability is asserted by the Company or by creditors of
the Company.

        6. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is
lost, stolen, mutilated or destroyed, the Company shall, on such terms as to
indemnity or otherwise as it may in its discretion reasonably impose (which
shall, in the case of a mutilated Warrant, include the surrender thereof), issue
a new Warrant of like denomination and tenor as the Warrant so lost, stolen,
mutilated or destroyed. Any such new Warrant shall constitute an original
contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

        7. Restrictive Legends. Each certificate representing the Warrant Shares
and any other securities issued in respect of the Warrant Shares upon any stock
split, stock dividend, recapitalization, merger or similar event (unless no
longer required in the opinion of counsel for the Company) shall be stamped or
otherwise imprinted with legends substantially in the following forms (in
addition to any legend that may now or hereafter be required by applicable
federal or state law):

               "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
               STATE SECURITIES LAWS. THEY MAY NOT BE OFFERED, SOLD OR OTHERWISE
               TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A
               REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES,
               THE AVAILABILITY OF CERTAIN EXEMPTIONS FROM SUCH REGISTRATION
               REQUIREMENTS, OR DELIVERY OF AN OPINION OF COUNSEL SATISFACTORY
               TO THE ISSUER OF SUCH SECURITIES THAT SUCH OFFER, SALE, TRANSFER,
               PLEDGE OR HYPOTHECATION IS IN FULL COMPLIANCE WITH THE SECURITIES
               ACT OF 1933, AS AMENDED."

               "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
               CERTAIN RESTRICTIONS SET FORTH IN THAT

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               CERTAIN SECOND RESTATED INVESTORS' RIGHTS AGREEMENT, AS MAY BE
               AMENDED FROM TIME TO TIME, A COPY OF WHICH MAY BE OBTAINED BY THE
               HOLDER, UPON REQUEST AND WITHOUT CHARGE, AT THE PRINCIPAL OFFICE
               OF THE CORPORATION."

        8. Presentment. Prior to due presentment of this Warrant together with a
completed assignment form attached hereto for registration of transfer, the
Company may deem and treat the Holder as the absolute owner of the Warrant,
notwithstanding any notation of ownership or other writing thereon, for the
purpose of any exercise thereof and for all other purposes, and the Company
shall not be affected by any notice to the contrary.

        9. Notice. All notices and other communications required or permitted
hereunder shall be in writing, shall be effective when given, and shall in any
event be deemed to be given upon receipt or, if earlier, (i) five (5) days after
deposit with the U.S. postal service or other applicable postal service, if
delivered by first class mail, postage prepaid, (ii) upon delivery, if delivered
by hand, (iii) one (1) business day after the day of deposit with Federal
Express or similar overnight courier, freight prepaid, if delivered by overnight
courier or (iv) one (1) business day after the day of facsimile transmission, if
delivered by facsimile transmission with copy by first class mail, postage
prepaid, and shall be addressed to the parties at the addresses set forth below
or at such other address as shall be furnished by a party to the other party in
writing with at least five (5) days prior notice:

        If to Accelerated Networks, Inc.:

               301 Science Drive
               Moorpark, CA  93021
               Attention: Chief Financial Officer

               with a copy to:

               Brobeck, Phleger & Harrison LLP
               38 Technology Drive
               Irvine, CA  92618
               Attention: Bruce R. Hallett, Esq.

        If to U S WEST Internet Ventures, Inc.:

               1801 California Street, Suite 3400
               Denver, Colorado  80202
               Attention: Ophyll D'Costa

               with a copy to:

               U S WEST Internet Ventures, Inc.
               Law Department, Strategic Transactions Group
               1801 California Street, Suite 5100

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               Denver, Colorado  80202
               Attention: Henry Pickens, Esq.

        10. Governing Law. The validity, interpretation and performance of this
Warrant shall be governed by the laws of the State of California without regard
to principles of conflicts of laws.

        11. Successors, Assigns. This Warrant may not be assigned by the holder
of this Warrant without the express prior written consent of the Company, which
may be withheld at the Company's sole discretion. Notwithstanding the foregoing,
the holder may assign this Warrant and all rights hereunder to any of its
affiliates (as defined in Rule 405 promulgated under the Securities Act of 1933,
as amended). All the terms and provisions of this Warrant shall be binding upon
and inure to the benefit of and be enforceable by the permitted assigns of the
parties hereto.

        12. Amendment. This Warrant may be modified or amended only by a writing
signed by the Company and the holder of this Warrant.

        13. Severability. Should any part but not the whole of this Warrant for
any reason be declared invalid, such decision shall not affect the validity of
any remaining portion, which remaining portion shall remain in force and effect
as if this Warrant had been executed with the invalid portion thereof
eliminated, and it is hereby declared the intention of the parties hereto that
they would have executed the remaining portion of this Warrant without including
therein any such part which may, for any reason, be hereafter declared invalid.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and delivered on and as of the Issuance Date by one of its officers
thereunto duly authorized.

                                     ACCELERATED NETWORKS, INC.
                                     a California corporation

                                     By:
                                        ---------------------------------------
                                     Print Name:    Suresh Nihalani
                                     Title:  President

                                       7
<PAGE>   12

                               NOTICE OF EXERCISE

(To be executed by the Warrant holder if he desires to exercise the Warrant in
whole or in part)

To:     ACCELERATED NETWORKS, INC.

        The undersigned, whose Social Security or other identifying number is
_____________, hereby irrevocably elects the right of purchase represented by
the within warrant for, and to purchase thereunder, __________________________
shares of securities provided for therein and tenders payment herewith to the
order of

                           ACCELERATED NETWORKS, INC.

                                in the amount of

                                $
                                 -----------------

The undersigned requests that certificates for such shares be issued as follows:

Name:
     ---------------------------------------------------------------------------

Address:
        ------------------------------------------------------------------------
Deliver to:
           ---------------------------------------------------------------------
Address:
        ------------------------------------------------------------------------

and, if said number of shares shall not be all the shares purchasable hereunder,
that a new Warrant for the balance remaining of the shares purchasable under the
within Warrant be registered in the name of, and delivered to, the undersigned
at the address stated below:

                                          Address:
                                                  ------------------------------

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

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

Dated:                              , 20
      ------------------------------    --

                                          Signature:
                                                    ----------------------------
                                          Print Name:
                                                     ---------------------------
                                          (Signature must conform in all
                                          respects to the name of the Warrant
                                          holder as specified on the face of the
                                          Warrant, without alternation,
                                          enlargement or any change whatsoever)

                                      A-1

<PAGE>   13

                             NOTICE OF NET EXERCISE

To:     Accelerated Networks, Inc.
        301 Science Drive
        Moorpark, CA  93021

               1. The undersigned hereby elects to exercise that portion of the
attached Warrant representing the right to purchase __________________ shares of
Common Stock of Accelerated Networks, Inc. ("Accelerated") and thereby acquire
such number of shares of Common Stock as is determined pursuant to Section 2 of
such Warrant, which exercise shall be effected pursuant to the terms of the
attached Warrant.

               2 Please issue a certificate or certificates representing said
shares in the name of the undersigned.

               3. The undersigned represents that the aforesaid shares being
acquired for the account of the undersigned for investment and not with a view
to, or for resale in connection with, the distribution thereof and that the
undersigned has no present intention of distributing or reselling such shares.

               4. If exercise of the attached Warrant is in connection with a
merger or initial public offering of Accelerated, exercise shall occur upon the
condition of, and simultaneously with, the consummation of such merger or
initial public offering, as the case may be.

Date:                                    U S WEST INTERNET VENTURES, INC.
     -------------------------------

                                         By:
                                            ------------------------------------

                                         Name:
                                              ----------------------------------

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

                                      B-1<PAGE>   1
                                                                   EXHIBIT 10.31
                       COMMON STOCK SUBSCRIPTION AGREEMENT

        This Common Stock Subscription Agreement ("Agreement") is made this 15th
day of May 2000, by and between Accelerated Networks, Inc., a California
corporation (the "Company"), and U S WEST Internet Ventures, Inc., a Colorado
corporation (the "Purchaser").

        In consideration of the mutual promises, covenants and conditions
hereinafter set forth, the parties hereto agree as follows:

1.  SUBSCRIPTION

        The Purchaser hereby irrevocably subscribes for and agrees to purchase,
on and subject to the terms and conditions set forth herein, from the Company,
such shares (the "Shares") of the Company's Common Stock equal to Three Million
Dollars ($3,000,000) divided by the price per share of common stock sold in the
Company's initial public offering (the "IPO"), having the rights, preferences
and privileges set forth in the Company's Amended and Restated Certificate of
Incorporation, the form of which is attached hereto as Exhibit "A" (the
"Restated Certificate") which is the form of the Company's certificate of
incorporation which will govern the Company upon the closing of the Company's
IPO.

        The Purchaser hereby acknowledges that the Company is currently
incorporated in California and is undertaking a reincorporation in Delaware. In
connection therewith, each holder of common stock of the California corporation
will receive one share of common stock of the Delaware corporation.

2.  CLOSING AND DELIVERY OF SHARE CERTIFICATES

        Delivery and payment for the Shares will be completed in one closing
(the "Closing") at the offices of Brobeck, Phleger & Harrison LLP, 38 Technology
Drive, Irvine, California 92618 at 8:00 a.m. (Pacific Daylight Time) on the date
of, and immediately following, the closing of the Company's IPO. At the Closing,
the Purchaser shall pay the aggregate purchase price for the Shares, $3,000,000
(the "Purchase Price"), by wire transfer to an account specified by the Company.
A certificate representing the Shares will be delivered at Closing against
payment to the Company of the Purchase Price in the manner specified above.

3.  COMPANY REPRESENTATIONS AND WARRANTIES

        The Company hereby represents and warrants to the Purchaser that, except
as set forth in the Schedule of Exceptions ("Schedule of Exceptions") attached
to this Agreement as Schedule A, the statements in the following Sections of
this Section 3 are all true and correct:

        3.1 Organization and Standing. The Company is a corporation duly
organized and validly existing under, and by virtue of, the laws of the State of
California, and is in good standing under such laws. The Company has all
corporate power and authority to own, lease and operate its properties and to
conduct its business as currently conducted and as proposed to be conducted. The
Company is qualified to do business as a foreign corporation in each
jurisdiction

<PAGE>   2

in which the conduct of its business requires such qualification except where
failure to be so qualified would not have a material adverse effect on its
financial condition, business or operations. The Company has made available to
the Purchaser true, correct and complete copies of its Articles of Incorporation
and Bylaws.

        3.2 Capitalization. As of the date hereof, the authorized capital stock
of the Company consists of (i) Ninety Million (90,000,000) shares of Common
Stock, of which Ten Million Four Hundred Forty-Two Thousand Four Hundred
Ninety-Seven (10,442,497) shares are issued and outstanding, and (ii)
Thirty-Five Million Five Hundred Forty-Five Thousand Six Hundred Forty-Eight
(35,545,648) shares of Preferred Stock, of which (A) Eleven Million Five Hundred
Thousand (11,500,000) shares have been designated Series A Preferred Stock,
Eleven Million Two Hundred Twenty Thousand (11,220,000) of which shares are
issued and outstanding, (B) Eleven Million Six Hundred Thousand (11,600,000)
shares have been designated Series B Preferred Stock, Eleven Million Five
Hundred Eighty-Four Thousand Eight Hundred Forty-Eight (11,584,848) of which
shares are issued and outstanding, and (C) Eight Million Eight Hundred
Forty-Five Thousand Six Hundred Forty-Eight (8,845,648) shares have been
designated Series C Preferred Stock, Eight Million Eight Hundred Forty-Five
Thousand Six Hundred Forty-Eight of which shares are issued and outstanding and
(D) Three Million Six Hundred Thousand (3,600,000) shares have been designated
Series D Preferred Stock, Three Million Four Hundred Fifty-Five Thousand Two
Hundred Sixty-Seven (3,455,267) of which shares are issued and outstanding.
Except for (i) the conversion privileges of the Company's Series A Preferred
Stock, the Company's Series B Preferred Stock, the Company's Series C Preferred
Stock and the Company's Series D Preferred Stock, (ii) the rights provided in
that certain Second Restated Investors' Rights Agreement dated as of February
18, 2000, among the Company and certain of its shareholders, as amended to date
(as so amended, the "Restated Investors' Rights Agreement"), (iii) the Company's
obligation to issue warrants pursuant to a Warrant Issuance Agreement dated as
of December 16, 1999 with Siemens Information Communication Networks, Inc., of
which warrants to purchase 28,575 shares of Common Stock have previously been
issued and warrants to purchase up to an additional 121,425 shares of Common
Stock may be issued and (iv) the Ten Million Six Hundred Fifty Thousand
(10,650,000) shares of Common Stock authorized for issuance under the Company's
1997 Stock Option/Stock Issuance Plan (the "Plan"), of which Three Million Six
Hundred Forty-Two Thousand Four Hundred Ninety-Seven (3,642,497) shares have
been issued and are outstanding pursuant to the exercise of options or direct
issuances and Five Million Eight Hundred Twenty-Six Thousand Nine Hundred Fifty
(5,826,950) shares are issuable upon exercise of outstanding options as of the
date hereof, there are no options, warrants, conversion privileges or other
rights, or agreements with respect to the issuance thereof, presently
outstanding to purchase any of the capital stock of the Company. All shares are
duly authorized, validly issued, fully paid and nonassessable and have been
issued by the Company in compliance with the registration requirements of
securities laws. Apart from the exceptions noted in this Section 3.2, no shares
of the Company's outstanding capital stock, or stock issuable upon exercise or
exchange of any outstanding options or other stock issuable by the Company, are
subject to any rights of first refusal or other rights to purchase such stock
(whether in favor of the Company or any other person), pursuant to any agreement
or commitment of the Company.

                                       2
<PAGE>   3

        3.3 Subsidiaries. The Company has no subsidiaries and does not presently
own or control, directly or indirectly, any interest in any other corporation,
partnership, trust, joint venture, association, or other entity.

        3.4 Due Authorization. All corporate action on the part of the Company,
its officers, directors and shareholders, necessary for the sale and issuance of
the Shares and the performance of the Company's obligations under this Agreement
and Restated Investors' Rights Agreement has been taken or will be taken prior
to the Closing. This Agreement and the Restated Investors' Rights Agreement are
valid and binding obligations of the Company enforceable against the Company in
accordance with their terms, subject, as to enforcement of remedies, to
applicable bankruptcy, insolvency, moratorium, reorganization and similar laws
affecting creditors' rights generally and to general equitable principles. The
Shares are not subject to any preemptive rights or rights of first refusal
pursuant to any agreement or commitment of the Company. The execution, delivery
and performance by the Company of this Agreement and compliance herewith and the
sale and issuance of the Shares will not result in any violation of and will not
conflict with, or result in a breach of any of the terms of, or constitute a
default under, any provision of state or federal law to which the Company is
subject, the Company's Articles of Incorporation or Bylaws, each as amended, or
any provision of any mortgage, indenture, agreement, instrument, judgment, writ,
decree, order, rule or regulation or other restriction to which the Company is a
party or by which it is bound, the breach of or default under which would have a
material adverse effect upon the business or operations of the Company, or
result in the creation of any mortgage, pledge, lien, encumbrance or charge upon
any of the properties or assets of the Company pursuant to any such term;
provided, however, that the Shares may be subject to restrictions on transfer
under state and/or federal securities laws.

        3.5 Valid Issuance of Stock. The outstanding capital stock of the
Company are, and the Shares, when issued, sold and delivered in accordance with
the terms of this Agreement for the consideration provided for herein, will be
duly and validly issued, fully paid and nonassessable and are and will be free
of any liens or encumbrances created by the Company.

        3.6 Financial Statements; Absence of Changes. The Company has made
available to the Purchaser its audited financial statements at December 31, 1997
and for the fiscal year then ended, its audited financial statements at December
31, 1998 and for the fiscal year then ended, its audited financial statements at
December 31, 1999 and for the fiscal year then ended, and its unaudited
financial statements at March 31, 2000 and for the three months then ended
(collectively, the "Financial Statements"). Except that the unaudited Financial
Statements do not contain footnotes and are subject to normal year-end
adjustments, the Financial Statements (i) are complete and correct in all
material respects and (ii) accurately set out and describe in all material
respects the financial condition and operating results of the Company as of the
dates, and for the periods, indicated therein. Except as set forth in the
Financial Statements, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business
subsequent to March 31, 2000 and (ii) obligations under contracts and
commitments incurred in the ordinary course of business, which, in both cases,
are not individually or in the aggregate in excess of $1,000,000 or otherwise
material to the financial condition or operating results of the Company. Since
March 31, 2000, there has not been (i) any sale, assignment or transfer of any
patents, trademarks, copyrights, trade secrets or other intangible assets owned
by the Company; (ii) any resignation or termination of employment of

                                       3
<PAGE>   4

any key officer of the Company; (iii) any mortgage, pledge, transfer of a
security interest in, or lien, created by the Company, with respect to any of
its material properties or assets, except liens for taxes not yet due or
payable; (iv) any loans or guarantees made by the Company to or for the benefit
of its employees, officers or directors, or any members of their immediate
families, other than travel advances and other advances made in the ordinary
course of its business; (v) any declaration, setting aside or payment or other
distribution in respect of any of the Company's capital stock, or any direct or
indirect redemption, purchase or other acquisition of any of such stock by the
Company; or (vi) any other event or condition of any character which is
reasonably likely to materially and adversely affect the assets, financial
condition, properties, operating results or business of the Company.

        3.7 Title to Properties and Assets. The Company has good and marketable
title to its properties and assets held in each case subject to no mortgage,
pledge, lien, encumbrance, security interest or charge of any kind, except such
mortgage, pledge, lien, encumbrance, security interest or charge that arises in
the ordinary course of business and does not materially impair the Company's
ownership or use of such property. With respect to the property and assets it
leases, the Company is in compliance with such leases and, to the Company's
knowledge, the Company holds valid leasehold interests in such assets free of
any liens, encumbrances, security interests or claims of any party other than
the lessors of such property and assets.

        3.8 Intellectual Property. To the Company's knowledge, the Company has
sufficient title, license and/or ownership of all patents, trademarks, service
marks, trade names, copyrights, trade secrets, information, proprietary rights
and processes necessary for its business as now conducted without any conflict
with or infringement of the rights of others. As used in the foregoing sentence,
the word "knowledge" shall mean the Company's actual knowledge (but without
having conducted any special investigation or patent search other than searches
in connection with the filing of patent applications). Except for the agreements
with its own employees or consultants referenced in Section 3.9 and licensing
agreements entered into by the Company in the ordinary course of its business,
there are no outstanding options, licenses, or agreements of the Company
relating to the foregoing, and the Company is not a party or bound by any
options, licenses or agreements with respect to the patents, trademarks, service
marks, trade names, copyrights, trade secrets, licenses, information,
proprietary rights and processes of any other person or entity. Neither the
Company, nor to its knowledge any of its employees, has received any
communications alleging that the Company has violated or, by conducting its
business as proposed, would violate any of the patents, trademarks, service
marks, trade names, copyrights or trade secrets or other proprietary rights of
any other person or entity. The Company warrants that to the actual knowledge of
its executive officers, no employee of the Company is obligated under any
contract (including licenses, covenants or commitments of any nature) or other
agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would conflict with his obligation to use his best
efforts to promote the interests of the Company or that would conflict with the
Company's business. Reasonable security measures have been taken to protect the
secrecy, confidentiality and value of the proprietary information referred to in
this Section 3.8.

        3.9 Material Contracts and Obligations. All employees of the Company
have executed the Company's form "Proprietary Information and Inventions
Agreement" concerning non-disclosure of confidential information and assignment
of inventions to the Company.

                                       4
<PAGE>   5

        3.10 Litigation. There are no actions, proceedings or investigations
pending or, to the Company's knowledge, threatened, against or affecting the
Company or its property, that, either in any case or in the aggregate, might
result in any material adverse change in the business, prospects, condition,
affairs or operations of the Company or in any of its properties or assets, in
any material impairment of the right or ability of the Company to carry on its
business as now conducted and as proposed to be conducted, or in any change in
the current equity ownership of the Company, and none that questions the
validity of this Agreement or any action taken or to be taken in connection
herewith.

        3.11 Governmental Consents. Except for filings of (i) the Restated
Certificate with the Secretary of the State of Delaware and (ii) notices
required or permitted to be filed with certain federal and state securities
commissions (which the Company agrees to timely file), no consents, approvals,
orders, authorizations or registrations, qualifications, designations,
declarations or filings with any federal or state governmental authority on the
part of the Company is required in connection with the valid execution, delivery
and performance of this Agreement and the consummation of the transactions
contemplated herein. Based in part on the representations of the Purchaser set
forth in Section 4 below, the offer, sale and issuance of the Shares in
conformity with the terms of this Agreement are exempt from the registration and
prospectus delivery requirements of the Securities Act of 1933, as amended (the
"Securities Act"), and have been qualified or are exempt from qualifications
under all applicable state securities qualification requirements.

        3.12 Third Party Consents. Except as set forth above in Section 3.11,
all third party consents, approvals, orders or authorizations required to be
obtained by the Company in connection with the consummation of the transactions
contemplated herein have been obtained.

        3.13 Compliance with Other Instruments. The Company is not in violation,
breach or default of any term of its Articles of Incorporation or Bylaws or, in
any material respect, of any term or provision of any mortgage, indenture,
contract, agreement or instrument to which the Company is a party or by which it
may be bound, or of any provision of any foreign or domestic state or federal
judgment, decree, order, statute, rule or regulation applicable and material to
the Company. The execution, delivery and performance of, and compliance with,
this Agreement and the Restated Investors Rights Agreement and the consummation
of the transactions contemplated hereby will not result in any such violation or
default, or be in conflict with or constitute, with or without the passage of
time or the giving of notice or both, (i) a default under the Company's Articles
of Incorporation or Bylaws, or under any agreement or contract of the Company,
(ii) to the Company's knowledge, a violation of any statutes, laws, regulations
or orders, or (iii) an event which results in the creation of any lien, charge
or encumbrance upon any asset of the Company.

        3.14 Disclosure. No representation or warranty by the Company in this
Agreement, any publicly-filed document with the Securities and Exchange
Commission, or in any written statement or certificate signed by the President
of the Company furnished pursuant to this Agreement contains or will contain any
untrue statement of a material fact, or omits to state a material fact, in each
case which would cause the statements made herein or therein in the light of the
circumstances under which they were made to be materially misleading. The minute
books of the Company contain complete and accurate records of all meetings and
other corporate

                                       5
<PAGE>   6

actions of its shareholders and its Board of Directors and committees thereof.
The stock ledger of the Company is complete and accurate and reflects all
issuances, transfers, repurchases and cancellations of shares of capital stock
of the Company.

        3.15 Registration Rights. Except as provided in the Restated Investors'
Rights Agreement, the Company has not granted or agreed to grant any person or
entity any rights (including piggy-back registration rights) to have any
securities of the Company registered with the United States Securities and
Exchange Commission ("SEC") or any other governmental authority.

        3.16 Tax Matters. The Company has no unpaid federal, state, county or
local taxes, except such taxes which would not result in a material adverse
effect on the Company. The Company has not been advised (i) that any of its
federal, state or local tax returns have been or are being audited as of the
date hereof, or (ii) of any deficiency in assessment or proposed judgment with
respect to its federal, state or other taxes. The Company has duly filed all
federal, state, county and local tax returns required to have been filed by it
and paid all taxes shown to be due on such returns. There are in effect no
waivers of applicable statutes of limitations with respect to taxes for any
year.

        3.17 Tax Elections. The Company has not elected pursuant to the Internal
Revenue Code of 1986, as amended (the "Code"), to be treated as a Subchapter S
corporation or collapsible corporation pursuant to Section 1362(a) or Section
341(f) of the Code, nor has it made any other elections pursuant to the Code
(other than elections which relate solely to matters of accounting, depreciation
or amortization) which would have a material adverse affect on the Company, its
financial condition, its business as presently conducted or presently proposed
to be conducted or any of its properties or material assets.

        3.18 Shareholders, Directors and Officers. To the actual knowledge of
the Company's executive officers and without any inquiry of any of the following
individuals, none of the officers or directors or significant employees or
consultants of the Company, has, individually or collectively, a material
interest in any entity which is a competitor, customer or supplier of (or has
any existing contractual relationship with) the Company, other than holdings of
less than 1% of publicly-held entities. To the actual knowledge of the Company's
executive officers and without any inquiry of the following individuals, no
employee, officer, or director of the Company or member of his or her immediate
family is indebted to the Company, nor is the Company indebted (or committed to
make loans or extend or guarantee credit) to any of them other than (i) for
payment of salary rendered, (ii) reimbursement for reasonable expenses incurred
on behalf of the Company, and (iii) for other standard employee benefits made
generally available to all employees (including stock option agreements
outstanding under any stock option plan approved by the Board of Directors of
the Company).

        3.19 Employees. To the Company's knowledge, no employee of the Company
is in violation of any term of any employment contract, patent disclosure
agreement, non-competition agreement, or any restrictive covenant to a former
employer relating to the right of any such employee to be employed by the
Company because of the nature of the business conducted or presently proposed to
be conducted by the Company or to the use of trade secrets or proprietary
information of others. There is neither pending nor, to the Company's knowledge,
threatened

                                       6
<PAGE>   7

any actions, suits, proceedings or claims, or to its knowledge any basis
therefor or threat thereof, with respect to any contract, agreement, covenant or
obligation referred to in the preceding sentence. The Company does not have any
collective bargaining agreement covering any of its employees. No employee of
the Company has an employment agreement or a severance arrangement with the
Company and such employees are employed on an "at will" basis. There is no
strike, labor dispute or union organization activities pending or, to the
Company's knowledge, threatened between the Company and its employees. None of
the Company's employees belongs to any union or collective bargaining unit. The
Company is not aware that any officer or key employee, or that any group of key
employees, intends to terminate their employment with the Company, nor does the
Company have a present intention to terminate the employment of any of the
foregoing.

        3.20 Permits. To the Company's knowledge, the Company has such material
permits, licenses, franchises, authorizations and clearances of governmental or
regulatory authorities ("Permits") as are necessary to own its properties and to
conduct its business as presently conducted. The Company has fulfilled and
performed all its material obligations with respect to its Permits, and no event
has occurred that allows or would allow revocation or termination thereof or
results or would result in any other material impairment of the rights of the
Company.

        3.21 Employee Benefit Plans. To the Company's knowledge, the Company is
and has been in compliance with all applicable laws, rules and regulations
relating to employment and employment practices, terms and conditions of
employment, wages and hours and the provisions of all laws or rules or
regulations applicable to any employee benefit compensation, stock option or
other similar plan, maintained or contributed to by it for the benefit of its
employees, the failure of which would have a material adverse effect on the
Company and its financial position. There are no claims (other than routine
claims for benefits) pending or threatened with respect to any of such plans or
arrangements.

        3.22 Environmental and Safety Laws. To the Company's knowledge, the
Company is not in violation of any applicable statute, law or regulation
relating to the environment or occupational health and safety, and is not aware
of any material expenditures that are or will be required in order to comply
with any such existing statute, law or regulation.

        3.23 Manufacturing and Marketing Rights. The Company has not granted any
material rights to manufacture, produce, assemble, license, market, or sell its
products to any other person and is not bound by any agreement that materially
affects the Company's exclusive right to develop, manufacture, assemble,
distribute, market, or sell its products.

        3.24 Insurance. The Company has in full force and effect fire and
casualty insurance policies sufficient in amount (subject to reasonable
deductibles) to allow it to replace any of its properties that might be damaged
or destroyed. The Company also has in full force and effect broad form
comprehensive general liability insurance in the minimum amount of $5,000,000
per year. The Company also has in full force and effect term life insurance,
payable to the Company, on the life of key personnel, in an amount in excess of
$2,000,000.

                                       7
<PAGE>   8

4.  REPRESENTATIONS AND WARRANTIES OF PURCHASER

        The Purchaser represents and warrants to the Company as follows:

        4.1 Due Authorization. All corporate action on the part of the
Purchaser, and its officers, directors, partners and shareholders (as
applicable), necessary for the purchase of the Shares and the performance of the
Purchaser's obligations under this Agreement and the Restated Investors' Rights
Agreement has been taken or will be taken prior to the Closing. This Agreement
and the Restated Investors' Rights Agreement are valid and binding obligations
of the Purchaser, enforceable in accordance with their terms, subject, as to
enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors' rights generally and to
general equitable principles.

        4.2 Investigation. The Purchaser acknowledges that it has had an
opportunity to discuss the business, affairs and current prospects of the
Company with the Company's officers and that it has had access to information
about the Company that it has requested or considers necessary for purposes of
purchasing the Shares. The Purchaser further acknowledges and agrees that: (i)
it has not been provided with a registration statement, prospectus or any
similar document in connection with its purchase of the Shares and (ii) its
decision to execute this Agreement and the Investors' Rights Amendment in
substantially the form attached hereto as Exhibit B (the "Investors' Rights
Amendment") and to purchase the Shares has not been based upon any verbal or
written representations as to fact or otherwise made by or on behalf of the
Company and that its decision is based upon the information, representations and
covenants of the Company contained in this Agreement, its own review of certain
of the Company's documents and records, and publicly available information
concerning the Company.

        4.3 Purchase for Own Account. The Shares that the Purchaser will
purchase hereunder will be acquired by the Purchaser, not as a nominee or agent,
and not with a view to or in connection with the distribution of any part
thereof within the meaning of the Securities Act. The Purchaser is an
"accredited investor" within the meaning of Regulation D of the Securities Act
and a "qualified institutional buyer" as defined in Rule 144A promulgated under
the Securities Act.

        4.4 Exempt from Registration. The Purchaser understands that the Shares
will not be registered under the Securities Act, on the ground that the sale
provided for in this Agreement is exempt from registration under the Securities
Act, and that the reliance of the Company on such exemption is predicated in
part on the Purchaser's representations set forth in this Agreement.

        4.5 Economic Risk. The Purchaser acknowledges that it is experienced in
evaluating and investing in securities of companies in the development stage and
acknowledges that it is able to fend for itself in the transactions contemplated
by this Agreement and has the ability to bear the economic risks of its
investment pursuant to this Agreement.

        4.6 Restricted Securities. The Purchaser understands that the Shares may
not be sold, transferred, or otherwise disposed of without registration under
the Securities Act or an exemption therefrom, and that, in the absence of an
effective registration statement covering the Shares or an available exemption
from registration under the Securities Act, the Shares must be

                                       8
<PAGE>   9

held indefinitely. In particular, the Purchaser is aware that the Shares may not
be sold pursuant to Rule 144 promulgated under the Securities Act unless (i)
adequate information concerning the Company is then available to the public,
(ii) the Purchaser has held the Shares for the applicable holding period
specified in Rule 144 and (iii) all other terms and conditions of Rule 144 are
satisfied.

        4.7 Restrictive Legends. It is understood that each certificate
representing the Shares and any other securities issued in respect of the Shares
upon any stock split, stock dividend, recapitalization, merger or similar event
(unless no longer required in the opinion of counsel for the Company) shall be
stamped or otherwise imprinted with legends substantially in the following forms
(in addition to any legend that may now or hereafter be required by applicable
federal or state law):

        "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
        UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES
        LAWS. THEY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
        HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
        RESPECT TO SUCH SECURITIES, THE AVAILABILITY OF CERTAIN EXEMPTIONS FROM
        SUCH REGISTRATION REQUIREMENTS, OR DELIVERY OF AN OPINION OF COUNSEL
        SATISFACTORY TO THE ISSUER OF SUCH SECURITIES THAT SUCH OFFER, SALE,
        TRANSFER, PLEDGE OR HYPOTHECATION IS IN FULL COMPLIANCE WITH THE
        SECURITIES ACT OF 1933, AS AMENDED."

        "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
        RESTRICTIONS SET FORTH IN THAT CERTAIN SECOND RESTATED INVESTORS' RIGHTS
        AGREEMENT, AS MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH MAY BE
        OBTAINED BY THE HOLDER, UPON REQUEST AND WITHOUT CHARGE, AT THE
        PRINCIPAL OFFICE OF THE CORPORATION."

        4.8 Further Limitations on Disposition. Without in any way limiting the
representations set forth above, the Purchaser further agrees not to make any
disposition of all or any portion of the Shares for a period of one (1) year
after the Closing. Furthermore, the Purchaser agrees that any disposition after
such one (1) year period will not be valid or permitted unless and until the
transferee has agreed in writing for the benefit of the Company to be bound by
this Section 4 and the Restated Investors' Rights Agreement; provided, and to
the extent, this Section and such agreement is then applicable, and:

        (a)There is then in effect a registration statement under the Securities
Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or

        (b) (i) The Purchaser shall have notified the Company of the proposed
disposition and shall have furnished the Company with a detailed statement of
the circumstances surrounding the proposed disposition, and (ii) if reasonably
requested by the Company, the Purchaser shall have

                                       9
<PAGE>   10

furnished the Company with an opinion of counsel, reasonably satisfactory to the
Company that such disposition will not require registration of such shares under
the Securities Act. It is agreed that the Company will not require opinions of
counsel for transactions made pursuant to Rule 144 under the Securities Act
except in unusual circumstances and will not require opinions of counsel in
transactions involving the transfer or distribution of the Shares by the
Purchaser to any direct or indirect subsidiary, parent or affiliate of the
Purchaser.

        4.9 Governmental Consents. All consents, approvals, orders,
authorizations or registrations, qualifications, designations, declarations or
filings with any U.S. federal or state governmental authority on the part of the
Purchaser required in connection with the consummation of the transactions
contemplated herein shall have been obtained prior to and be effective as of the
Closing.

        4.10 Third Party Consents. All third party consents, approvals, orders
or authorizations required to be obtained by the Purchaser in connection with
the consummation of the transactions contemplated herein have been obtained.

5.  CONDITIONS TO THE PURCHASER'S OBLIGATIONS AT THE CLOSING

        The obligation of the Purchaser to purchase the Shares at the Closing is
subject to the fulfillment to the satisfaction of the Purchaser on or prior to
the Closing of the following conditions:

        5.1 Representations and Warranties Correct; Performance of Obligations.
The representations and warranties made by the Company in Section 3 hereof shall
be true and correct when made, and, except for representations and warranties
which are as of a specified date, shall be true and correct as of the Closing
with the same force and effect as if they had been made on and as of said date,
subject to changes contemplated by this Agreement.

        5.2 Performance. The Company shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the Closing and
shall have obtained all approvals, consents and qualifications necessary to
complete the purchase and sale described herein.

        5.3 Restated Certificate. The Restated Certificate shall have been duly
adopted by the Company by all necessary corporate action of its Board of
Directors and shareholders, and shall have been duly filed with and accepted by
the Delaware Secretary of State.

        5.4 Opinion of Company's Counsel. The Purchaser shall have received from
counsel to the Company, an opinion, in substantially the form attached hereto as
Exhibit C addressed to the Purchaser, dated the date of Closing.

        5.5 Compliance Certificate. At the Closing there shall have been
delivered to the Purchaser a certificate, dated as of such date of Closing,
signed by the Company's President certifying that the conditions specified in
Sections 5.1 and 5.2 of this Agreement have been fulfilled.

                                       10
<PAGE>   11

        5.6 Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated at the Closing hereby and all
documents and instruments incident to such transactions shall be satisfactory in
substance and form to the Purchaser, and the Purchaser shall have received all
such counterpart originals or certified or other copies of such documents as the
Purchaser may reasonably request.

        5.7 Investors' Rights Amendment. The required parties shall have
executed the Investors' Rights Amendment, and such agreement shall be in full
force and effect.

        5.8 Authorizations. All authorizations, approvals or permits, if any, of
any governmental authority or regulatory body (including, without limitation,
federal and state securities commissions) that are required in connection with
the lawful issuance and sales of the Shares pursuant to this Agreement shall
have been duly obtained and shall be effective on and as of the Closing.

        5.9 Effectiveness of Registration Statement.

        The Company's registration statement on Form S-1 (No. 333-31732) filed
with the Securities and Exchange Commission in connection with the Company's IPO
shall have been declared effective and the Company shall have consummated the
IPO.

6.  CONDITIONS TO COMPANY'S OBLIGATIONS AT THE CLOSING

        The obligations of the Company under this Agreement are subject to the
fulfillment at or before the Closing of the following conditions:

        6.1 Representations and Warranties. The representations and warranties
of the Purchaser contained in Section 4 hereof shall be true and correct when
made, and shall be true and correct as of the Closing with the same force and
effect as if they had been made on and as of said date, subject to changes
contemplated by this Agreement.

        6.2 Restated Certificate. The Restated Certificate shall have been duly
adopted by the Company by all necessary corporate action of its Board of
Directors and shareholders, and shall have been duly filed with and accepted by
the Delaware Secretary of State.

        6.3 Payment of Purchase Price. The Purchaser shall have delivered to the
Company the Purchase Price for the Shares set forth in Section 2. 6.4 Investors'
Rights Amendment. The required parties shall have executed the Investors' Rights
Amendment, and such agreement shall be in full force and effect.

        6.5 Board of Directors Approval. The Company's Board of Directors shall
have approved the sale of the Shares pursuant to this Agreement.

        6.6 Authorizations. All authorizations, approvals or permits, if any, of
any governmental authority or regulatory body (including, without limitation,
federal and state securities commissions) that are required in connection with
the lawful issuance and sales of the Shares pursuant to this Agreement shall
have been duly obtained and shall be effective on and as of the Closing.

                                       11
<PAGE>   12

        6.7 Effectiveness of Registration Statement.

        The Company's registration statement on Form S-1 (No. 333-31732) filed
with the Securities and Exchange Commission in connection with the Company's IPO
shall have been declared effective and the Company shall have consummated the
IPO.

7.  MISCELLANEOUS

        7.1 Governing Law. This Agreement shall be governed in all respects by
the laws of the State of California as applied to agreements among California
residents entered into and to be performed entirely within California, without
regard to the conflict of law provisions thereof. All unresolved disputes
arising under this Agreement shall be submitted to, and resolved exclusively by,
arbitration to be held in Los Angeles County, California. The arbitration shall
be conducted under the then-prevailing rules of the American Arbitration
Association. The award of the arbitrator shall be binding and may be entered as
a judgment in any court of competent jurisdiction. Each party shall bear the
cost of preparing and presenting its case. The costs of the arbitration,
including the fees and expenses of the arbitrator, will be paid by the
non-prevailing party, as determined by the arbitrator. This provision shall not
be construed to prohibit either party from seeking preliminary or permanent
injunctive relief in any court of competent jurisdiction.

        7.2 Survival. The representations, warranties, covenants and agreements
made herein shall survive any investigation made by any party hereto and the
closing of the transactions contemplated hereby for a period of one (1) year
from the Closing.

        7.3 Successors and Assigns. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the respective successors and assigns of the parties hereto. Nothing in
this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

        7.4 Entire Agreement. This Agreement and the other documents and
agreements referred to herein, constitute the entire understanding and agreement
between the parties with regard to the subject matter hereof.

        7.5 Notices. Except as otherwise provided, all notices and other
communications required or permitted hereunder shall be in writing, shall be
effective when given, and shall in any event be deemed to be given upon receipt
or, if earlier, (i) five (5) days after deposit with the U.S. postal service or
other applicable postal service, if delivered by first class mail, postage
prepaid, (ii) upon delivery, if delivered by hand, (iii) one (1) business day
after the day of deposit with Federal Express or similar overnight courier,
freight prepaid, if delivered by overnight courier or (iv) one (1) business day
after the day of facsimile transmission, if delivered by facsimile transmission
with copy by first class mail, postage prepaid, and shall be addressed, (a) if
to the Purchaser, at the Purchaser's address set forth below its signature, or
at such other address as the Purchaser shall have furnished the Company in
writing, or (b) if to the Company,

                                       12
<PAGE>   13

at its address as set forth below, or at such other address as the Company shall
have furnished to the Purchaser in writing.

        7.6 Amendments and Waivers. This Agreement and any term hereof may be
amended, waived, discharged or terminated by a written instrument signed by the
Company and the Purchaser.

        7.7 Delays or Omissions. No delay or omission to exercise any right,
power or remedy accruing to the Company or to the Purchaser upon a breach or
default of any party hereto under this Agreement shall impair any such right,
power or remedy of the Company or the Purchaser, nor shall it be construed to be
a waiver of any such breach or default, or an acquiescence therein, or of any
similar breach or default thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of the Company or the Purchaser of
a breach or default under this Agreement, or any waiver on the part of the
Company or the Purchaser of any provisions or conditions of this Agreement, must
be in writing and shall be effective only to the extent specifically set forth
in such writing. All remedies, either under this Agreement or by law or
otherwise afforded to the Company or the Purchaser, shall be cumulative and not
alternative.

        7.8 Each Party to Bear Own Costs. Except as otherwise provided in
Section 7.10, each of the parties shall pay all costs and expenses incurred or
to be incurred by it in negotiating and preparing this Agreement and in closing
and carrying out the transactions contemplated by this Agreement.

        7.9 Third Parties. Nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any persons other than the parties to it and their respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third person to any party to this
Agreement, nor shall any provision give any third persons any right of
subrogation or action against any party to this Agreement.

        7.10 Finder's Fees.

        (a) The Company hereby agrees to indemnify and to hold the Purchaser
harmless of and from any liability for commission or compensation in the nature
of a finder's fee of any broker or other person or firm (and the costs and
expenses of defending against such liability or asserted liability) for which
the Company, or any of its employees or representatives, is responsible.

        (b) The Purchaser hereby agrees to indemnify and to hold the Company
harmless of and from any liability for any commission or compensation in the
nature of a finder's fee to any broker or other person or firm (and the costs
and expenses of defending against such liability or asserted liability) for
which the Purchaser, or any of its employees or representatives, is responsible.

        7.11 Titles and Subtitles. The titles of the Sections and Sub-sections
of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

        7.12 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.

                                       13
<PAGE>   14

        7.13 Severability. Should any provision of this Agreement be determined
to be illegal or unenforceable, such determination shall not affect the
remaining provisions of this Agreement.

        7.14 Confidentiality. Each of the parties hereto agree that, except with
the prior written permission of the other party, it shall at all times keep
confidential and not divulge, furnish, or make accessible to anyone any
confidential information, knowledge, or data concerning or relating to the
business or financial affairs of the other party to which said party has been or
shall become privy by reason of this Agreement, discussions or negotiations
relating to this Agreement, or the performance of its obligations hereunder;
provided, the foregoing restrictions shall not apply to any information,
knowledge or data which (a) is already in the public domain at the time of
disclosure or becomes publicly available through no breach of this provision by
said party; (b) was lawfully in said party's possession prior to receipt from
the other party without obligation of confidentiality; (c) is received
independently from a third party free to lawfully disclose such information to
said party; (d) is subsequently independently developed by said party; or (e) is
required to be disclosed by court order or applicable law.

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

                                       14
<PAGE>   15

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year hereinabove first written.

                                   THE COMPANY:

                                   ACCELERATED NETWORKS, INC.

                                   By:    /s/ Suresh Nihalani
                                      ---------------------------------
                                          Suresh Nihalani, President

                                   Address:      301 Science Drive
                                                 Moorpark, CA 93021

                                   THE PURCHASER:

                                   U S WEST INTERNET VENTURES, INC.

                                   By:    /s/ Janice Aune
                                      ---------------------------------
                                          Name:  Janice Aune
                                               ------------------------
                                          Title: President
                                                -----------------------
                                   Address: 1801 California Street, Suite 3400
                                            Denver, Colorado  80202

<PAGE>   16

<TABLE>
<CAPTION>

<S>     <C>                                                                               <C>
1.      SUBSCRIPTION.......................................................................1

2.      CLOSING AND DELIVERY OF SHARE CERTIFICATES.........................................1

3.      COMPANY REPRESENTATIONS AND WARRANTIES.............................................1
        3.1    Organization and Standing...................................................1
        3.2    Capitalization..............................................................2
        3.3    Subsidiaries................................................................3
        3.4    Due Authorization...........................................................3
        3.5    Valid Issuance of Stock.....................................................3
        3.6    Financial Statements; Absence of Changes....................................3
        3.7    Title to Properties and Assets..............................................4
        3.8    Intellectual Property.......................................................4
        3.9    Material Contracts and Obligations..........................................4
        3.10   Litigation..................................................................5
        3.11   Governmental Consents.......................................................5
        3.12   Third Party Consents........................................................5
        3.13   Compliance with Other Instruments...........................................5
        3.14   Disclosure..................................................................5
        3.15   Registration Rights.........................................................6
        3.16   Tax Matters.................................................................6
        3.17   Tax Elections...............................................................6
        3.18   Shareholders, Directors and Officers........................................6
        3.19   Employees...................................................................6
        3.20   Permits.....................................................................7
        3.21   Employee Benefit Plans......................................................7
        3.22   Environmental and Safety Laws...............................................7
        3.23   Manufacturing and Marketing Rights..........................................7
        3.24   Insurance...................................................................7

4.      REPRESENTATIONS AND WARRANTIES OF PURCHASER........................................8
        4.1    Due Authorization...........................................................8
        4.2    Investigation...............................................................8
        4.3    Purchase for Own Account....................................................8
        4.4    Exempt from Registration....................................................8
        4.5    Economic Risk...............................................................8
        4.6    Restricted Securities.......................................................8
        4.7    Restrictive Legends.........................................................9
        4.8    Further Limitations on Disposition..........................................9
        4.9    Governmental Consents......................................................10
        4.10   Third Party Consents.......................................................10

5.      CONDITIONS TO THE PURCHASER'S OBLIGATIONS AT THE CLOSING..........................10
        5.1    Representations and Warranties Correct; Performance of Obligations.........10
</TABLE>

<PAGE>   17

<TABLE>
<CAPTION>

<S>     <C>                                                                              <C>
        5.2    Performance................................................................10
        5.3    Restated Certificate.......................................................10
        5.4    Opinion of Company's Counsel...............................................10
        5.5    Compliance Certificate.....................................................10
        5.6    Proceedings and Documents..................................................11
        5.7    Investors' Rights Amendment................................................11
        5.8    Authorizations.............................................................11
        5.9    Effectiveness of Registration Statement....................................11

6.      CONDITIONS TO COMPANY'S OBLIGATIONS AT THE CLOSING................................11
        6.1    Representations and Warranties.............................................11
        6.2    Restated Certificate.......................................................11
        6.3    Payment of Purchase Price..................................................11
        6.4    Investors' Rights Amendment................................................11
        6.5    Board of Directors Approval................................................11
        6.6    Authorizations.............................................................11
        6.7    Effectiveness of Registration Statement....................................12

7.      MISCELLANEOUS.....................................................................12
        7.1    Governing Law..............................................................12
        7.2    Survival...................................................................12
        7.3    Successors and Assigns.....................................................12
        7.4    Entire Agreement...........................................................12
        7.5    Notices....................................................................12
        7.6    Amendments and Waivers.....................................................13
        7.7    Delays or Omissions........................................................13
        7.8    Each Party to Bear Own Costs...............................................13
        7.9    Third Parties..............................................................13
        7.10   Finder's Fees..............................................................13
        7.11   Titles and Subtitles.......................................................13
        7.12   Counterparts...............................................................13
        7.13   Severability...............................................................14
        7.14   Confidentiality............................................................14
        7.15   Termination................................................................14
</TABLE>

SCHEDULE A     Schedule of Exceptions

Exhibits

    A     Amended and Restated Certificate of Incorporation
    B   - Investors' Rights Amendment
    C   - Form of Opinion

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