Document:

<PAGE>   1
                                                                   EXHIBIT 10.15

                                                                  EXECUTION COPY

                     JOINT DESIGN CENTER OPERATING AGREEMENT

                                 BY AND BETWEEN

                            LUCENT TECHNOLOGIES INC.

                                       AND

                               AGERE SYSTEMS INC.

                  RELATING TO MICRO ELECTRO MECHANICAL SYSTEMS

<PAGE>   2

                     JOINT DESIGN CENTER OPERATING AGREEMENT

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S>               <C>
ARTICLE 1.0       DEFINITIONS

ARTICLE 2.0       OBJECTIVE OF THE AGREEMENT

ARTICLE 3.0       TERM OF THE AGREEMENT

ARTICLE 4.0       FUNDING AND INTELLECTUAL PROPERTY RIGHTS

ARTICLE 5.0       JDC OPTICAL MEMS TECHNOLOGY PLATFORM

ARTICLE 6.0       PRODUCT DEVELOPMENT AND MANAGEMENT

ARTICLE 7.0       STRUCTURE AND STAFFING OF THE JDC

ARTICLE 8.0       GOVERNANCE OF THE JDC

ARTICLE 9.0       JDC OPERATIONS, LOCATION & SFRL

ARTICLE 10.0      FURNISHING AND USE OF INFORMATION

ARTICLE 11.0      NOTHING CONSTRUED

ARTICLE 12.0      COMPLIANCE WITH RULES AND REGULATIONS, AND INDEMNIFICATION

ARTICLE 13.0      NONSOLICITATION

ARTICLE 14.0      SURVIVAL

ARTICLE 15.0      TERMINATION

ARTICLE 16.0      NO WARRANTY, DISCLAIMER AND LIMITATION OF LIABILITY

ARTICLE 17.0      EXPORT CONTROL

ARTICLE 18.0      PUBLICITY
</TABLE>

                                      -i-
<PAGE>   3

<TABLE>
<CAPTION>
<S>               <C>
ARTICLE 19.0      TRADEMARKS AND TRADENAMES

ARTICLE 20.0      NOTICES

ARTICLE 21.0      MISCELLANEOUS PROVISIONS

ARTICLE 22.0      DISPUTE RESOLUTION

APPENDIX A        LUCENT BACKGROUND TECHNOLOGY

APPENDIX B        AGERE BACKGROUND TECHNOLOGY

APPENDIX C        OPTICAL MEMS TECHNOLOGY PLATFORM

APPENDIX D        MEMS PATENTS

APPENDIX E        MEMS TECHNICAL INFORMATION

APPENDIX F        POTENTIAL JDC ASSIGNEES - LUCENT

APPENDIX G        POTENTIAL JDC ASSIGNEES - AGERE

APPENDIX H        JDC 2001 ESTIMATED OPERATING BUDGET

APPENDIX I        MEMS EQUIPMENT

APPENDIX J        PROJECT LETTER(S)
</TABLE>

                                      -ii-
<PAGE>   4

                     JOINT DESIGN CENTER OPERATING AGREEMENT

THIS JOINT DESIGN CENTER OPERATING AGREEMENT, effective as of February 1, 2001
("Effective Date"), is made by and between Lucent Technologies Inc., a Delaware
corporation having offices at 600 Mountain Avenue, Murray Hill, New Jersey 07974
("Lucent") and Agere Systems Inc., a Delaware corporation having offices located
at 555 Union Boulevard, Allentown, Pennsylvania 18109 ("Agere").

                                    RECITALS

         A. WHEREAS, the Board of Directors of Lucent has determined that it is
in the best interests of Lucent and its stockholders to separate Lucent's
existing businesses into two independent entities;

         B. WHEREAS, Lucent is currently engaged in a research and develop
program directed to Micro Electro Mechanical Systems ("MEMS"). Such MEMS
research and development activities resulting in Lucent possessing certain
expertise in MEMS device design, packaging, assembly, reliability and switch
module design, and Agere possessing certain expertise in MEMS device design and
manufacturing processes;

         C. WHEREAS, Lucent and Agere desire to cooperate in the joint
development of optical MEMS technology which can be incorporated into products
that Lucent and Agere will either jointly or independently develop and market,
including certain products that Agere may distribute exclusively to Lucent for a
specific period of time; and

         D. WHEREAS, such cooperative activity will enable Lucent and Agere to
independently offer a broader range of products in a shorter time period than if
each had proceeded without the assistance of the other.

NOW, THEREFORE, in consideration of the promises herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties, intending to be legally bound, agree as follows:

                            ARTICLE 1.0 - DEFINITIONS

For the purposes of this Agreement, in addition to the words and phrases that
are defined throughout the body of this Agreement, the following words and
phrases in initial capital letters will have the following meanings:

                                      -1-
<PAGE>   5
         1.1 "Agere Competitor" means any person or entity that competes with
Agere in the provision of telecommunications components including the provision
of semiconductor devices and optical devices.

         1.2 "Agere Information" means informative material and technical
information, but not MEMS Technical Information, owned (in accordance with the
Intellectual Property Agreements) by Agere or any of its Subsidiaries and
brought into the JDC by Agere during the Term of this Agreement. Such
information includes any communication between Lucent and Agere which originally
is not in written or other tangible form, but is subsequently summarized by
Agere in a writing delivered to Lucent within thirty (30) days of the original
communication.

         1.3 "Agere JDC Assignee(s)" means the Agere employees, agents or
Contractors assigned by Agere to support the JDC in accordance with this
Agreement.

         1.4 "Agere Patents" means every patent (including utility models, but
excluding design patents and design registrations) which is an Agere Guardian
Patent as such term is defined in the Patent and Technology License Agreement.

         1.5 "Agere Supply Agreement" means the Microelectronics Product
Purchase Agreement by and between the Parties executed on or about the date
hereof, as described in the Separation and Distribution Agreement, detailing the
supply of products, including MEMS Products, by Agere to Lucent.

         1.6 "Background Technology" means all technology and all associated
intellectual property owned by a Party, including know-how, copyright, trade
secret, and other proprietary rights, other than Agere Patents and Lucent
Patents, brought by a Party into the JDC for use in the JDC and necessary for
use in developing Foreground Technology, including but not limited to the
technology identified in Appendix A as Lucent Background Technology and that
identified in Appendix B as Agere Background Technology. Notwithstanding the
foregoing, a Party's Background Technology hereunder shall not include any
underlying technology of such Party used to manufacture a design being brought
by such Party as Background Technology.

         1.7 "Contractors" means personnel who are not employees of a Party but
are engaged by one Party consistent with the terms of this Agreement and with
the consent of the other Party to perform work in the JDC.

         1.8 "Executive Board" means those individuals collectively directing
and providing oversight for the JDC. Initially, as of the Effective Date, the
Executive Board shall be comprised of, for Lucent, Mr. Rodney C. Alferness, Mr.
Gary P. Austin and Ms. Cherry A. Murray, and for Agere, Mr. Dennis M. Hill, Mr.
Thomas L. Koch and Mr. Raymond R. Nering.

         1.9 "Foreground Technology" means any intellectual property (other than
Agere Patents and Lucent Patents), information, document, apparatus, method,
product, design, material, process, software, system, manufacturing technique or
other result developed by JDC Assignees in accordance with this Agreement.
Notwithstanding the foregoing, Foreground Technology will

                                      -2-
<PAGE>   6
not include any Background Technology or any information developed in accordance
with Section 6.2(c)(ii) of this Agreement.

         1.10 "General Availability" means the M-code date together with the
minimum volume level associated therewith as established for a particular MEMS
Product under a Project Letter.

         1.11 "Information" means either Lucent Information or Agere Information
or both as the context so indicates.

         1.12 "Intellectual Property Agreements" means the Patent Assignment,
Technology Assignment and Joint Ownership Agreement, and Patent and Technology
License Agreement, collectively.

         1.13 "JDC" shall have the meaning specified in Section 2.1 herein.

         1.14 "JDC Assignee(s)" means the Lucent JDC Assignees and the Agere JDC
Assignees, collectively.

         1.15 "JDC Deliverable(s)" means any information, document, apparatus,
method, product, design, material, process, software, system, manufacturing
technique or other result developed within the JDC, under a Work Project or
provided as an output of the JDC in accordance with this Agreement. JDC
Deliverable will not include patents of any kind.

         1.16 Joint Information" means any Foreground Technology, technical
information, method, apparatus, product, manufacturing technique, software,
design tools, documentation and any related information which is developed by
JDC Assignees in accordance with this Agreement. All Joint Information shall be
jointly owned (subject to the restrictions herein) between Lucent and Agere with
Lucent holding an undivided one-half (1/2) interest and Agere holding an
undivided one-half (1/2) interest. For the purposes of this Agreement, Joint
Information shall not include any information developed by a Party in accordance
with Section 6.2(c)(ii) hereto.

         1.17 "Joint Invention" means any invention made by one or more of
Lucent's JDC Assignees or Technical Board members jointly with one or more of
Agere's JDC Assignees or Technical Board members while performing work
hereunder, which invention is first conceived or first actually reduced to
practice during performance under this Agreement, such inventions to be jointly
owned between Lucent and Agere with Lucent holding an undivided one-half (1/2)
interest and Agere holding an undivided one-half (1/2) interest.

         1.18 "Joint MEMS Products" means any product jointly developed by the
Parties hereunder in accordance with Article 6.0.

         1.19 "Joint Patents" means all patents of any type which issue from any
application filed with respect to any Joint Invention.

                                      -3-
<PAGE>   7
         1.20 "Lease Agreement" means the Divestiture Lease Agreement, dated as
of February 1, 2001, between Lucent, as landlord, and Agere, as tenant,
governing the use of space located at 600 Mountain Ave., Murray Hill, NJ 07974
including, but not limited to, the SFRL.

         1.21 "Lucent Information" means informative material and technical
information, but not MEMS Technical Information, owned (in accordance with the
Intellectual Property Agreements) by Lucent or any of its Subsidiaries and
brought into the JDC by Lucent during the Term of this Agreement. Such
information includes any communication between Lucent and Agere which originally
is not in written or other tangible form, but is subsequently summarized by
Lucent in a writing delivered to Agere within thirty (30) days of the original
communication.

         1.22 "Lucent JDC Assignee(s)" means the Lucent employees, agents or
Contractors assigned by Lucent to support the JDC in accordance with this
Agreement.

         1.23 "Lucent Competitor" means any person or entity that competes with
Lucent in the provision of telecommunications systems, services, and equipment,
including the provision of software and optical communications systems.

         1.24 "Lucent Patents" means every patent (including utility models, but
excluding design patents and design registrations) which is a GRL Patent as such
term is defined in the Patent and Technology License Agreement.

         1.25 "MEMS" has the meaning assigned in Recital B hereof.

         1.26 "MEMS Equipment" means the MEMS processing equipment, owned by
Agere as of the Effective Date and currently located in the SRFL, as set forth
in Appendix I hereto. The Parties agree upon the addition of any Agere-owned
MEMS processing equipment to the SFRL after the Effective Date hereof, Appendix
I shall be understood to be automatically amended to include such additional
MEMS processing equipment.

         1.27 "MEMS Large Fabric Array(s)" means a MEMS switching fabric having
an array size larger than 64 x 64.

         1.28 "MEMS Patents" means the issued patents, pending patent
applications and docketed invention submissions as specifically listed on
Appendix D of this Agreement. In accordance with the Patent Assignment and the
Patent and Technology License Agreement, the Parties have transferred or
licensed certain rights with respect to such MEMS Patents.

         1.29 "MEMS Product(s)" means any product incorporating MEMS including,
but not limited to, MEMS Small Fabric Arrays, MEMS Large Fabric Arrays, add drop
multiplexers, dynamic gain equalizing filters (DGEF), variable optical
attenuators (single and arrays), and Optical Switch Modules.

         1.30 "MEMS Small Fabric Array(s)" means a MEMS switching fabric having
an array size 64 x 64 or smaller.

                                      -4-
<PAGE>   8

         1.31 "MEMS Technical Information" means the information jointly owned
(pursuant to the Technology Assignment and Joint Ownership Agreement) by the
Parties having primary application to optical MEMS as specifically identified in
Appendix E.

         1.32 "MEMS Technology" means technology related to Micro Electro
Mechanical Systems developed, modified and/or enhanced in accordance with this
Agreement including, but not limited to, the Joint Information, MEMS Technical
Information and Foreground Technology.

         1.33 "Optical MEMS Technology Platform" means the technology platform
set forth in Appendix C hereto and any modification thereto in accordance with
Article 5.0 hereto.

         1.34 "Optical Switch Module (OSM)" means a switching device
incorporating at least one MEMS Small Fabric Array or MEMS Large Fabric Array.

         1.35 "Party" means either Lucent Technologies Inc. or Agere Systems
Inc. as the context so indicates and when used in the plural it shall mean both
such entities.

         1.36 "Patent Assignment" means the two (2) patent assignment agreements
described in the Separation and Distribution Agreement detailing the assignment
of certain patent assets from Lucent to certain Subsidiaries of Agere in
connection with the separation of Agere from Lucent.

         1.37 "Patent and Technology License Agreement" means the patent and
technology license agreement executed on or about the date hereof, as described
in the Separation and Distribution Agreement, detailing the licensing of certain
patent and technology assets between Agere and Lucent in connection with the
separation of Agere from Lucent.

         1.38 "Project Letter" means the separate document to be issued pursuant
to this Agreement for each Joint MEMS Product development in accordance with
Article 6.0, which shall be executed by representatives of Lucent and Agere, and
which shall describe in detail the obligations, responsibilities, and mutual
agreement of Lucent and Agere in connection with the joint development of the
particular Joint MEMS Product. Unless otherwise mutually agreed by the Parties,
each Project Letter shall contain, at a minimum, the elements of information set
forth in Section 6.3 of this Agreement.

         1.39 "Separation and Distribution Agreement" means the Separation and
Distribution Agreement executed by the Parties on or about the date hereof.

         1.40 "Silicon Fabrication Research Line (SFRL)" means the silicon
fabrication facility located and operated in Lucent's facility at 600 Mountain
Ave., Murray Hill, New Jersey.

         1.41 "Special Compensation Plan" means an optional compensation plan
which may be established by the Parties in accordance with Section 7.6 of this
Agreement.

                                      -5-
<PAGE>   9

         1.42 "Subsidiary" of a company means a corporation or other legal
entity (i) the majority of whose shares or other securities entitled to vote for
election of directors (or other managing authority) is now or hereafter
controlled by such company either directly or indirectly; or (ii) which does not
have outstanding shares or securities but the majority of whose ownership
interest representing the right to manage such corporation or other legal entity
is now or hereafter owned and controlled by such company either directly or
indirectly; but any such corporation or other legal entity shall be deemed to be
a Subsidiary of such company only as long as such control or ownership and
control exists.

         1.43 "Supply Failure" means any breach of or performance failure by
Agere of the Supply Agreement.

         1.44 "Technical Board" means those individuals collectively directing
and providing technical oversight for the JDC. Initially, as of the Effective
Date, the Technical Board shall be comprised of, for Lucent, David Bishop, John
Gates and Randy Giles, and for Agere, Tseng-Chung Lee, Om Nalamasu and Khanh C.
Nguyen. Each Party may change any of their respective three (3) appointed
Technical Board members at their discretion and shall provide the other Party
with written notice indicating the name of the replacement Technical Board
member.

         1.45 "Technology Assignment and Joint Ownership Agreement" means the
agreement by and between the Parties executed on or about the date hereof, as
described in the Separation and Distribution Agreement, detailing the assignment
of certain technology assets between Agere and Lucent in connection with the
separation of Agere from Lucent.

         1.46 "Term" shall have the meaning specified in Section 3.1.

         1.47 "Work Project(s)" mean specific programs of work reviewed and
approved by the Technical Board in accordance with Article 5.0 of this Agreement
or specified in a Project Letter.

                    ARTICLE 2.0 - OBJECTIVE OF THE AGREEMENT

         2.1 The objective of this Agreement is to create a MEMS Joint Design
Center ("JDC") which will be jointly staffed, funded, and managed by Lucent and
Agere for their mutual benefit. The JDC will not be a separate legal entity.

         2.2 The Parties will operate the JDC as a design center for the purpose
of designing MEMS Products and developing the MEMS Technology. In accordance
with this Agreement and the Agere Supply Agreement, MEMS Products may be
supplied by Agere to Lucent.

                       ARTICLE 3.0 - TERM OF THE AGREEMENT

                                      -6-
<PAGE>   10
         3.1 The initial term of this Agreement will be three (3) years
commencing on the Effective Date and expiring on January 31, 2004 (hereinafter
the "Term") unless earlier terminated in accordance with the provisions hereof.

             ARTICLE 4.0 - FUNDING AND INTELLECTUAL PROPERTY RIGHTS

         4.1 Funding

         (a) The Parties agree to respectively allocate funding to the JDC in
the first year of the Term of this Agreement in accordance with the estimated
2001 operating budget as set forth in Appendix H hereto. In particular, as set
forth in Appendix H, Agere and Lucent shall allocate certain funding to the
joint activities set forth in Article 5.0 of this Agreement. The balance of the
allocated funding set forth in Appendix H shall be committed, if at all, by the
Parties pursuant to individual Project Letter(s) in accordance with Article 6.0
of this Agreement.

         (b) Because the JDC will not be a separate legal entity, it will be run
as a cost center in accordance with this Agreement, and therefore, will not have
any profits or losses nor will it be permitted to incur any debts or have any
external financing to meet its operating requirements.

         (c) Within thirty (30) days after the Effective Date of this Agreement,
Lucent and Agere will agree upon a detailed long-term overall operations plan
("Overall Operations Plan"), establishing qualitative and quantitative
parameters for the operation of the JDC. This Overall Operations Plan will be
used by the Executive Board in operating the JDC. The Overall Operations Plan
will be updated annually and will be approved at least sixty (60) days prior to
the beginning of the next operating year for the JDC.

         (d) Unless otherwise provided herein or as otherwise agreed to by the
Parties, the yearly funding of the costs and expenses associated with the JDC
activities set forth in Article 5.0 will be shared in approximately the same
proportions between Lucent and Agere as set forth in Appendix H. To that end,
the Parties expect that their year-over-year funding of the JDC shall continue
at least at the levels specified in Appendix H. The respective budgets of the
Parties for operating the JDC will be reviewed by the Executive Board to ensure
sufficient and equitable levels of support by the Parties.

         (e) In the event the JDC requires any additional and/or extraordinary
expenditure of funds, a request for such additional funding will be communicated
in writing by the Executive Board to the Parties.

         (f) Each Party will bear their own legal and related costs and expenses
associated with establishing the JDC, except with respect to any extraordinary
costs and expenses associated with obtaining the approval, if any, of the United
States Government to operate the JDC, which costs and expenses will be shared
equally by the Parties provided there is mutual agreement to seek such approval.

                                      -7-
<PAGE>   11

         4.2 MEMS Technical Information, Background Technology and Foreground
Technology

         (a) MEMS Technical Information. In accordance with the Technology
Assignment and Joint Ownership Agreement, the Parties jointly own the MEMS
Technical Information. The Parties agree to be further bound by the restrictions
herein with respect to such MEMS Technical Information.

(b)            Background Technology.

              (i) Each Party will make its Background Technology available to
the JDC in accordance with the mutually approved JDC Optical MEMS JDC Technology
Platform described in Article 5.0.

              (ii) Each Party will retain all right, title, and interest in its
Background Technology.

              (iii) Each Party grants to the other Party, a perpetual,
nonexclusive, nontransferable, royalty-free license under its Background
Technology, without the right to sublicense (except for sublicenses to a Party's
Subsidiaries and to third parties as provided in this Agreement) and without any
accounting for profits, to make, have made, use, sell, offer to sell, import or
lease MEMS Products and to develop JDC Deliverables in accordance with this
Agreement. The right to use a Party's Background Technology includes the right
to communicate (subject to confidentiality provisions as least as restrictive as
those in Article 10.0) portions of, and grant nonexclusive sublicenses to (of
the same scope as the licenses granted to such Party except for the granting of
any further sublicenses), such Background Technology to third parties. The
license under Background Technology in accordance with this Section includes the
right to reproduce and make derivative works of Background Technology to the
extent necessary for such other Party to make, have made, use, sell, offer to
sell, import or lease MEMS Products and to develop JDC Deliverables in
accordance with this Agreement. Nothing in this Section shall expand any of the
patent licenses set forth herein.

              (iv) Each Party may bring any additional technology, owned by such
Party, into the JDC which may be useful or expeditious to meeting the JDC's
objectives, and such additional technology will be treated and licensed in the
same manner and to the same extent as for Background Technology unless the
Parties mutually agree in writing as to the different treatment of such
additional technology hereunder prior to such additional technology being
introduced into the JDC by the Party owning such additional technology.

         (c) Foreground Technology. Subject to the restrictions set forth in
this Agreement, all Foreground Technology shall be jointly owned by the Parties
without an obligation to account to the other Party.

                                      -8-
<PAGE>   12
         4.3 MEMS Patents. In accordance with the Patent Assignment and the
Patent and Technology License Agreement, the Parties have transferred or
licensed certain rights with respect to the MEMS Patents.

         4.4 Patent Rights and Licenses under Agere Patents and Lucent Patents

         (a) The Parties hereto agree that the licenses necessary hereunder with
respect to Agere Patents and Lucent Patents shall be as set forth in the Patent
and Technology License Agreement.

         (b) No Other Licenses. Neither Lucent nor Agere or any of their
Subsidiaries grants any license rights by implication, estoppel or otherwise,
other than the licenses herein expressly granted or in the Intellectual Property
Agreements.

         4.5 Joint Information And Sole Inventions.

         (a) Joint Information. The Parties will jointly own the Joint
Information without any accounting to the other Party, subject to the
restrictions set forth in this Agreement. All Joint Information hereunder,
except publicly known information, will be in written or other tangible form,
marked "Lucent Technologies-Agere Proprietary" and will be maintained
confidential by both Parties in accordance with Article 10.0, except as
otherwise provided herein.

         (b) Publication Release. It is contemplated that the joint results of
the JDC (e.g., Joint Information) created under Article 5.0 will be jointly
released or published to third parties, however, the Parties each separately
reserve the right to release or publish such joint results. To that end, the
Parties agree that any release or publication related to the JDC (and results
therefrom) with respect to Article 5.0 shall be subject to the following: (i)
the Executive Board and Technical Board shall be furnished with a copy of any
proposed release or publication within a reasonable time period in advance of
submission of such material for release or publication; and (ii) the Executive
Board and Technical Board shall review such release or publication and may
require the removal of any Lucent Confidential Information, Agere Confidential
Information, Joint Information or any other information furnished or created
hereunder by a Party that may be included therein, and may request a delay of
such publication to permit for the filing of patent application(s). The Parties
agree that proper acknowledgement will be made for the contributions of each
Party with respect to any release or publication hereunder.

         (c) Invention Disclosures. All invention disclosures, to be treated as
confidential information by the Parties in accordance with Article 10.0, of JDC
Assignees arising under the activities governed by Article 5.0 of this Agreement
and Project Letter(s) shall be reviewed by the Technical Board prior to
submission of such disclosure to the respective patent legal organizations of
the Parties.

         (d) Sole Inventions. Subject to Section 4.5(c), either Party may file
patent applications for inventions conceived or made by its JDC Assignees during
the term of this Agreement, which

                                      -9-
<PAGE>   13
inventions are not made jointly with JDC Assignees of the other Party, but
neither Party will be required to file such patent applications, secure any
patent or maintain any patent.

         4.6 Joint Patents.

         (a) Joint Patents will be jointly owned by the Parties. The Parties
will cooperate to handle prosecution and administration of the Joint Patents and
share all associated expenses equally as further set forth below.

         (b) Duty to Cooperate. Both Parties agree that they will sign all
papers and do all acts (and in the case of Lucent, have Lucent JDC Assignees
sign all papers and do all acts, and in the case of Agere, have Agere JDC
Assignees sign all papers and do all acts) which may be necessary, desirable or
convenient to enable filing and prosecuting of all applications for patents on
inventions arising from work under this Agreement and to enable maintenance of
patents granted thereon. The Parties also agree to acquire from their respective
JDC Assignees who perform work in furtherance of this Agreement, such
assignments, rights and covenants as are necessary to assure that each Party
shall receive any and all licenses and rights it is entitled to acquire
hereunder.

         (c) Assignment of Interest. Notwithstanding each Party's undivided
one-half (1/2) ownership interest in Joint Patents, during the Term of this
Agreement a Party shall not assign its entire interest, or any portion thereof,
in any Joint Patent to any third party (other than to a Party's Subsidiaries)
without the express written consent of the other Party. If any attempt is made
by one Party to assign its interest in any Joint Patent without the other
Party's consent, all of the one Party's interest in that Joint Patent which such
one Party attempts to assign shall automatically be extinguished, and the other
Party shall have sole ownership in that Joint Patent subject to the one Party
retaining the rights under such Joint Patent as set forth in Section 4.6(d).

         (d) Rights of each Party under Joint Patents. Lucent and Agere shall
each have, under Joint Patents, the rights to make, have made, use, lease, offer
to sell, sell and import any products and services of their respective
businesses in which they are now or hereafter engaged. Such rights shall also
extend to Subsidiaries of Lucent and Agere.

         (e) Patent prosecution and maintenance of Joint Patents. (i) The
Parties agree that all patent prosecution and maintenance decisions, both in the
United States and in foreign counties, shall be made jointly by the Parties,
after consultation. All expenses for prosecuting each Joint Patent and for issue
and maintenance of each Joint Patent shall be equally borne by the Parties. As
mutually agreed by the Parties, one Party shall retain primary responsibility
for prosecuting each patent application which is a Joint Patent hereunder. At a
Party's request, the other Party shall furnish any assistance that may be
necessary during the prosecution of such patent application.

              (ii) In the case of a Joint Patent which is filed in a country
which requires the payment of taxes or annuities on a pending patent application
or on an issued patent, the Parties shall equally share in the payment of such
taxes and annuities for all Joint Patents.

                                      -10-
<PAGE>   14
              (iii) The responsible prosecuting Party (pursuant to Section
4.6(e)(i) above) will pay all prosecution expenses, taxes and annuities
associated with any Joint Patent, and within sixty (60) days from receiving
evidence of such payment, the other Party will reimburse such responsible Party
for fifty percent (50%) of such expenses, taxes and annuities.

              (iv) Neither Party will be required, however, to incur any costs,
such as patent application costs, to which it has not agreed. If, after the
Parties meet and discuss matters relating to obtaining patent protection for
Joint Inventions, one Party does not want to pursue filing a patent application
on any Joint Inventions in any country, the other Party may independently pursue
patent protection of such Joint Invention in such country on behalf of that
Party only at that Party's sole expense. The Party who so pursues patent
protection in such country will be the sole owner of any resulting issued patent
in such country and will be entitled to all revenues derived by such Party
relating to the resulting issued patent, provided, however, that the other Party
will have a worldwide, perpetual, nontransferable, nonexclusive, royalty-free
license to make, have made, use, sell, offer to sell, import or lease products
or services of such other Party's businesses. In the event that one Party elects
not to continue prosecution of any pending patent application which is a Joint
Patent, or not to pay any tax or annuity due on a Joint Patent, such one Party
will offer to the other Party (and will effect an assignment if such offer is
accepted) a fee-free assignment of the one Party's one-half (1/2) interest in
such application or Joint Patent, subject to the transferring Party retaining a
non-exclusive, irrevocable, and fully transferable license under such
application or Joint Patent to make, have made, use, lease, offer to sell, sell,
and import any or all products and services of any type or kind.

              (v) Neither Party may, without the express written consent of the
other Party, disclaim or dedicate any Joint Patent, or file for reissue or
reexamination, or undertake any other procedure or perform any act which may
affect the scope or validity of any of the Joint Patents, other than as required
in the course of normal prosecution under 4.6(e). The foregoing limitation on
filing for reissue or reexamination shall not, however, apply in the event that
one Party has instituted litigation with respect to one or more Joint Patents,
and the other Party has no litigation pending with respect to such one or more
Joint Patents.

         (f) Licensing of Joint Patents to Third Parties. (i) Each Party shall
have the right to grant nonexclusive, personal, non-assignable licenses under
Joint Patents to any third party anywhere in the world. Each Party hereby
consents to the grant of such licenses by the other Party, and gives such
consent to the extent that such consent is necessary to effectuate the licenses
granted, and consents to the retaining by the licensing Party of all revenues,
royalties and benefits received for such licenses without accounting therefor to
the non-licensing Party.

         (g) Enforcement of Joint Patents. (i) Subject to the provisions of this
Section, each Party shall have the right to bring any litigation against any
third party under any Joint Patent, without the consent of the other Party. The
other Party hereby consents to be joined as a party to the litigation, if
required.

              (ii) Each Party shall notify the other, in writing, at least
thirty (30) days prior to institution of any litigation involving one or more
Joint Patents. The Parties agree to negotiate

                                      -11-
<PAGE>   15
with each other, in good faith, in the event that either Party determines that
the institution of litigation is not in its best interests, and that there is a
preferable alternative available that would satisfy the interests of both
Parties. Following the giving of such notice, the Party receiving the notice
shall not (A) for the initial period of three (3) months following such
notification, and (B) during the course of the litigation and until its
conclusion by settlement or execution of judgment, license or attempt to license
any such Joint Patent to the third party identified in the notice or the third
party that is the subject of the litigation.

              (iii) Unless otherwise agreed by the Parties, the Party initiating
any litigation involving any Joint Patent (A) shall promptly notify the other
Party of the initiation of such litigation, (B) shall have sole control of the
litigation, (C) shall incur all expenses and costs (including reasonable
expenses associated with requested participation of the joined other Party as
co-owner), and (D) shall retain any and all amounts recovered as a result of
such litigation without accounting therefor to the other Party.

              (iv) Each Party shall promptly notify the other Party in the event
that any third party asserts by lawsuit, license discussions or otherwise any
invalidity claims as to any Joint Patent.

         4.7 Covenant Not to License.

         (a) Unless otherwise provided in this Agreement (e.g., Section
6.2(c)(ii)), or a Project Letter, or mutually agreed upon in writing, during the
Term of this Agreement and for a period of six (6) months after the expiration
of or any termination of this Agreement, Agere shall not have any right to
license, and will not license, the Joint Information, Foreground Technology,
MEMS Technical Information and/or the results from a JDC Deliverable to any
Lucent Competitor, provided, however, that Agere shall not be precluded from
manufacturing (or having made for Agere's own use and resale) and selling Agere
products or services which include Joint Information, Joint Patents, Foreground
Technology, MEMS Technical Information and/or the results from a JDC
Deliverable.

         (b) Unless otherwise provided in this Agreement (e.g., Section
6.2(c)(ii)), or a Project Letter or mutually agreed upon in writing, during the
Term of this Agreement, Lucent shall not have any right to license, and will not
license, the Joint Information, Foreground Technology, MEMS Technical
Information and/or the results from a JDC Deliverable to any Agere Competitor,
provided, however, that Lucent shall not be precluded from manufacturing and
selling Lucent products or services which include Joint Information, Foreground
Technology, MEMS Technical Information and/or the results from a JDC Deliverable
or having such products or services made (or having any components or subsystems
made for use in such products or services) by any third party or having such
products or services made (or having any components or subsystems made for use
in such products or services) in the event of a Supply Failure (subject to the
terms of the Agere Supply Agreement). In addition, for a period of six (6)
months following the expiration or termination of this Agreement, Lucent shall
be restricted from licensing an Agere Competitor under such Joint Information,
Foreground Technology, MEMS Technical Information and/or the results from a JDC
Deliverable except to have a MEMS Product developed and/or manufactured by any
third party where for a period of six (6)

                                      -12-
<PAGE>   16
months, as measured from the relevant third party's equivalent of General
Availability as defined hereunder, such third party shall be restricted to
supplying only Lucent with the relevant MEMS Product but only for such six month
period.

         4.8 Sublicenses to Subsidiaries.

The grant of each license hereunder includes the right to grant sublicenses
within the scope of such license (but not the right to grant further
sublicenses) to a Party's Subsidiaries for so long as they remain its
Subsidiaries. Any and all licenses or sublicenses granted to Subsidiaries
pursuant to this Agreement may be made effective retroactively, but not prior to
the Effective Date hereof, nor prior to the sublicensee's becoming a Subsidiary
of such Party.

               ARTICLE 5.0 - JDC OPTICAL MEMS TECHNOLOGY PLATFORM

         5.1 One focus of the JDC is the joint research and advancement of the
Optical MEMS Technology Platform (hereinafter, for convenience, "the Technology
Platform").

         5.2 Overall Technology Plan. All joint activities undertaken by the JDC
will be in accordance with the approved Technology Platform jointly developed
and agreed to by the Parties. An overall technical plan ("Overall Technical
Plan") consistent with the Technology Platform for the JDC will be prepared by
the Technical Board. Such Overall Technical Plan will be prepared, presented to
and agreed to by the Executive Board within thirty (30) days after the Effective
Date of this Agreement. All changes to the Technology Platform and Overall
Technical Plan shall be approved by the Executive Board.

         5.3 Periodic Reviews. The Technical Board will meet at least on a
quarterly basis to discuss potential and existing Work Projects and JDC
Deliverables directed to the Technology Platform and modifications to the
Overall Technical Plan or Technology Platform. Written proposals for Work
Projects consistent with the Overall Technical Plan will be submitted by the JDC
Assignees to the Technical Board for approval. Such proposals shall be submitted
for potential Work Projects to the Technical Board thirty (30) days in advance
of any scheduled Technical Board meeting. Such written proposals shall (a)
provide a description of the work to be performed in sufficient detail to
determine whether to establish a Work Project; (b) provide a detailed budget
required to complete the Work Project including staffing requirements,
equipment, overhead allocations and the like; (c) identify a lead JDC Assignee
for the Work Project; (d) specify a time period of performance together with a
preliminary set of identified JDC Deliverables and completion date; and (e) any
other information deemed relevant by the submitter of such proposal for approval
purposes.

         5.4 Joint Information. The Parties agree that any technical
information, method, apparatus, product, manufacturing technique, software,
design tools, documentation and any related information which is developed by
JDC Assignees in accordance with Work Projects, JDC

                                      -13-
<PAGE>   17
Deliverables or any other output of the JDC directed to the Technology Platform
in accordance with this Article 5.0 shall be Joint Information.

                ARTICLE 6.0 - PRODUCT DEVELOPMENT AND MANAGEMENT

         6.1 In addition to the Technology Platform activities hereunder,
another focus of the JDC is the joint development of optical MEMS Products.

         6.2 MEMS Product Development Decision Process.

         (a) All development of optical MEMS Products under the JDC shall be
approved by the Executive Board in accordance with this Section.

         (b) Written proposals for Work Projects directed to the development of
a particular optical MEMS Product may be submitted jointly by the Parties or
individually by a Party. In recognition of the critical resources required to
effectively operate the JDC, each Party agrees to keep such individual Party
submissions to a minimum level per calendar year. All such proposals for
potential Work Projects shall be submitted to the Executive Board thirty (30)
days in advance of any scheduled Executive Board meeting or at such other
mutually agreeable times. Such written proposals shall (a) provide a description
of the optical MEMS Product and work to be performed in sufficient detail to
determine whether to establish a Work Project; (b) provide a detailed budget
required to complete the Work Project including staffing requirements,
equipment, overhead allocations and the like; (c) identify a lead JDC Assignee
for the Work Project; (d) specify a time period of performance together with a
preliminary set of identified JDC Deliverables and completion date; and (e) any
other information deemed relevant by the submitter of such proposal for approval
purposes.

         (c) (i) The Executive Board shall review each optical MEMS Product
development submission and determine whether joint development between the
Parties of the particular optical MEMS Product is desirable. If joint
development is approved in writing by the Executive Board, a separate Project
Letter shall be agreed to in writing by the Parties with respect to the
particular joint development in accordance with Section 6.3 below. If a Project
Letter is not executed by the Parties within ninety (90) days (or any extensions
thereto as mutually agreed by the Parties) of the date of the Executive Board's
written approval, each Party is free to pursue independent development of the
relevant MEMS Product outside of the JDC in accordance with Section 6.2(c)(ii),
as appropriate. After execution of the Project Letter between the Parties, the
particular optical MEMS Product shall be deemed a Joint MEMS Product in
accordance with the terms of this Agreement.

         (ii) If joint development is not approved, the Party interested in
pursuing the development of the particular optical MEMS Product may do so on an
independent basis outside the constructs of the JDC provided that such activity
does not materially adversely impact such Party's JDC Assignees ability to
execute on JDC activities. Any intellectual property created under such Party
independent development shall vest solely in such Party. Independent product

                                      -14-
<PAGE>   18
development by Lucent and Agere in accordance with this Section shall be subject
to the following:

                  (A) With respect to any independent product development
                  undertaken by a Party hereunder, such Party shall be free to
                  develop and manufacture such optical MEMS Product for itself
                  or develop such optical MEMS Product with any third party and
                  have such optical MEMS Product manufactured by a third party
                  and exercise all rights and licenses, including the granting
                  of licenses and/or sublicenses to any third parties consistent
                  with this Agreement, hereunder to the extent necessary for
                  such Party to develop and manufacture or have such optical
                  MEMS Product developed and manufactured by any third party. In
                  the event such Party elects to develop the optical MEMS
                  Product with a third party and has granted licenses and/or
                  sublicenses to any third party to enable such development and
                  manufacture, such Party agrees that for a period of six (6)
                  months (or some other period as mutually agreed to by the
                  Parties), as measured from the relevant third party's
                  equivalent of General Availability as defined hereunder, such
                  third party shall be restricted to supplying only such Party
                  with the relevant optical MEMS Product. After the expiration
                  of such time period of exclusive supply to such Party, the
                  third party may be fully licensed, at such Party's discretion,
                  in accordance with the rights and licenses hereunder to make
                  and sell the particular optical MEMS Product (including any
                  derivative or improvement thereof) on the commercial market to
                  any and all customers.

                  (B) Notwithstanding the foregoing, with respect to independent
                  product development undertaken by Lucent under this Section
                  6.2(c)(ii), in no event shall any third party engaged by
                  Lucent under Section 6.2(c)(ii) have access to the SFRL during
                  the Term of this Agreement with respect to such development
                  activity between Lucent and such third party unless previously
                  approved by Agere.

         (d) Notwithstanding the above approval process, the Parties agree to
continue or enter into good faith negotiations after the Effective Date with
respect to specific Project Letters as set forth in Appendix J hereto.

         6.3 Project Letters.

         (a) In accordance with this Agreement, Lucent and Agere presently
contemplate the future execution by them of one or more written Project Letters
directed to the development of Joint MEMS Products. All transactions between
Lucent and Agere which relate to a Project Letter shall be covered by such
Project Letter and the terms of this Agreement.

                                      -15-
<PAGE>   19
         (b) Each duly executed Project Letter shall be deemed, upon its
execution, to include the terms of this Agreement. If the Project Letter
conflicts with the terms and conditions of this agreement, the terms and
conditions of the Project Letter shall control.

         (c) Lucent and Agere agree that each Project Letter, at a minimum,
shall specify the information outlined below:

              (i)   A reference to this Agreement as "Lucent / Agere Joint
                    Design Center Operating Agreement, Effective February 1,
                    2001" and that such Project Letter is governed by such
                    Agreement;

              (ii)  The effective date of the Project Letter and the
                    contemplated term of the Project Letter;

              (iii) A detailed description of the Joint MEMS Product and Work
                    Project(s) in terms of the scope of work for development
                    services to be performed, including a description of any
                    information, product and material that may be delivered
                    pursuant to specified JDC Deliverables;

              (iv)  A statement defining all JDC Deliverables, milestones and
                    their associated due dates. In accordance with the work
                    performed under this Agreement, the Parties shall develop
                    endpoint specifications for all Joint MEMS Products
                    detailing performance, quality and other material criteria
                    related thereto (collectively "End Point Specifications").
                    Such Endpoint Specifications shall be mutually agreed upon
                    and thereafter be used with respect to delivering and
                    acceptance of Joint MEMS Products in accordance with the
                    Supply Agreement.

              (v)   A statement that the Parties agree that any purchases of the
                    relevant Joint MEMS Product(s) by Lucent from Agere shall be
                    governed by terms set forth in the Supply Agreement
                    including any additional supply terms that may be specified
                    in the subject Project Letter. For example, a statement
                    defining any exclusivity periods between the Parties with
                    respect to supply and/or other material terms necessary for
                    the Supply Agreement;

              (vi)  A statement specifying the funding commitment (in U.S.
                    dollars) of each Party for completing the development of the
                    Joint MEMS Product(s). Such funding commitment to specify
                    with particularity each Party's funding associated with such
                    Party's JDC funding allocation in accordance with Section
                    4.1 hereunder and any additional funds committed by such
                    Party to the particular development;

              (vii) The name, address, telephone and facsimile number of
                    Lucent's and Agere's representatives assigned to administer
                    the Work Project(s) and interface with the Executive Board
                    and/or Technical Board;

                                      -16-
<PAGE>   20
              (viii) The responsibility and period for delivery of the JDC
                    Deliverables within which the Parties shall accept or reject
                    the JDC Deliverables. The Parties agree that such period
                    will vary according to the needs of a particular Work
                    Project, but shall be kept as short as reasonably possible;

              (ix)  A statement defining the commencement and completion dates
                    of the Work Project(s) period; and

              (x)   Signatures of representatives authorized by Lucent and Agere
                    to execute the Project Letter.

         6.4 Work Project Management

         (a) The responsibilities of the JDC Assignees identified by the Parties
to administer the various Work Projects in accordance with executed Project
Letters shall include:

              (i)   Monitoring all Work Project activities, including processing
                    of information and other administrative details;

              (ii)  Taking the necessary action to achieve the milestone
                    objectives in accordance with the scheduled completion dates
                    in the Project Letters, including assigning identified
                    problems to responsible JDC Assignees for resolution;

              (iii) Providing information to the Executive Board and/or
                    Technical Board for reviewing and approving any interim
                    reports for the Work Projects;

              (iv)  Providing information to the Executive Board and/or
                    Technical Board in the event that changes to the Work
                    Project(s) are required; and

              (v)   Preparing the format and reviewing and approving any final
                    reports of the Work Project(s) as may be described in the
                    relevant Project Letter or requested by the Executive Board
                    and/or Technical Board.

                 ARTICLE 7.0 - STRUCTURE AND STAFFING OF THE JDC

         7.1 The JDC will be operated for the mutual benefit of Lucent and
Agere. The JDC will focus primarily on optical MEMS development activities in
accordance with this Agreement. Notwithstanding the foregoing, the Parties
recognize that the SFRL has other non-MEMS capabilities and may be used by Agere
for such non-MEMS related work on a reasonable basis, such basis not to
materially adversely impact the objectives of the JDC or performance of the
Parties hereunder.

         7.2 JDC Assignees.

                                      -17-
<PAGE>   21
         (i) Unless otherwise agreed by the Parties and compensated accordingly,
Lucent and Agere will assign personnel to the JDC in overall comparable numbers
to the headcount levels as set forth in Appendix F and Appendix G, respectively.
Lucent shall make reasonable efforts to have the Lucent personnel identified in
Appendix F assigned as JDC Assignees but in no way guarantees the participation
of any of such identified (or any other) personnel in the JDC. Agere shall make
reasonable efforts to have the Agere personnel identified in Appendix G assigned
as JDC Assignees but in no way guarantees the participation of any of such
identified (or any other) personnel in the JDC. Failure by either Party to have
any specific employees assigned to the JDC shall not be considered a breach of
this Agreement in any way whatsoever.

         (ii) The Parties recognize that the full (i.e., 100%) dedication of any
one JDC Assignee may not be possible, required, or in the best interest of such
JDC Assignee. As such, no JDC Assignee shall be required to work solely on JDC
activities but the individual JDC Assignee will use reasonable efforts to ensure
that JDC activities are not materially adversely impacted by participation in
other activities. The Parties agree to attempt to minimize the overall turnover
in the number of personnel each designates for assignment as JDC Assignees and
shall keep accurate records of the respective JDC Assignees of each Party during
the Term of this Agreement.

         7.3 No JDC Employees. Any employees assigned to the JDC will be solely
the employee of his or her assigning Party, and the other Party will not be
considered to be a joint employer of such employee. There will be no employees
of the JDC because it is not a separate legal entity.

         7.4 Wages and Benefits. Wages and benefits for each JDC Assignee will
be provided by the Party employing such JDC Assignee.

         7.5 JDC Assignee Changes. Each Party will review with the other Party,
in advance, personnel changes, reassignments, or relocation applicable to the
JDC. It is anticipated by both Parties that certain key JDC Assignees will serve
for the initial term of the Agreement, unless the individual JDC Assignee opts
to unilaterally terminate his or her assignment to the JDC. The Parties expect
that personnel assignments to the JDC by the Parties will be for the initial
Term of this Agreement, but with the understanding that either Party will have
the option to provide for natural opportunities for shifting people out of the
JDC and back to other positions or growth positions. Criteria will be
established by the Executive Board for the termination of assignments of
personnel to the JDC based on non-performance.

         7.6 Special Compensation Plan. If desirable, and mutually approved by
the Parties, the Parties agree to establish the Special Compensation Plan. This
optional compensation plan will include an opportunity for JDC Assignees to
receive an additional bonus to be paid by the JDC Assignee's employer, over and
above any bonus or other compensation paid by the JDC Assignee's employer in
accordance with such employer's standard employee compensation plan, in the
event the JDC meets or exceeds its objectives, as determined and agreed to by
the Parties on an annual basis while this Agreement is in effect. If so
established, each JDC Assignee will participate in the Special Compensation
Plan. The Special Compensation Plan will be structured to incent the personnel
of the JDC to provide JDC Deliverables and/or MEMS Products at a

                                      -18-
<PAGE>   22
superior cost, quality, and schedule. The funding of the Special Compensation
Plan shall be mutually agreed to in writing by the Parties at the time of the
Plan's establishment. The Executive Board shall be responsible for
administration and approving all distributions of funds to JDC Assignees in
accordance with the Special Compensation Plan.

                       ARTICLE 8.0 - GOVERNANCE OF THE JDC

         8.1 Executive Board Governs. The JDC will be governed by the Executive
Board. The following matters will require approval by the Executive Board, in
addition to any other matters required to be approved by the Executive Board by
other terms of this Agreement:

             (i) Approval or amendment of the Technology Platform, Overall
Operations Plan or any Project Letter.

             (ii) Any contract or commitment made by a Party for purposes of the
JDC which is not included in the approved Overall Operations Plan which
obligates an expenditure in excess of two hundred fifty thousand dollars
($250,000) individually or in the aggregate.

             (iii) Adoption and amendment of personnel policies, manuals and the
Special Compensation Plan for JDC Assignees.

             (iv) Selection of locations for the JDC's operations or expansion,
relocation or significant reduction of any JDC facility including the SFRL.

             (v) Any significant action or transaction not in the ordinary
course of operation of the JDC.

             (vi) Appointment of new members to the Technical Board, and
designation of the duties and authority of such Technical Board members.

             (vii) Approval of the Overall Technical Plan and any modifications
thereto.

         8.2 Executive Board Meetings. Meetings of the Executive Board will be
held monthly for the first year of this Agreement and thereafter as mutually
agreed. The Executive Board meetings may be conducted on either a face-to-face
basis or via video or telephone conference call, whichever is mutually agreed to
by the Parties at least ten (10) business days in advance of the scheduled
meeting. Special meetings may be called by any two members of the Executive
Board, one (1) from each Party, upon at least (i) ten (10) business days prior
notice for a face-to-face meeting or (ii) seventy-two (72) hours prior notice
for a telephonic or video conference meeting. The Executive Board may also act
without a meeting upon the unanimous written consent of all the Board members.

         8.3 Quorum and Majority Vote. A quorum of the Executive Board will
consist of at least four (4) members, including at least two (2)

                                      -19-
<PAGE>   23
members representing Agere and at least two (2) members representing Lucent. No
action may be taken at any meeting of the Executive Board in the absence of a
quorum. All actions of Executive Board and/or Technical Board shall require a
majority agreement. All actions and approvals will be reduced to writing and
distributed to the Parties.

         8.4 In the event all of the members representing one of the Parties
fail to attend a meeting duly noticed and called, the members in attendance at
the next duly noticed and called meeting, which may be a special meeting called
as provided in Section 8.2, may take action regardless of whether a quorum is
present.

         8.5 Deadlock. All deadlocks of the Executive Board and/or Technical
Board with respect to any issue, act, approval or other action necessary
hereunder shall be resolved in accordance with Article 22.0.

                  ARTICLE 9.0 - JDC OPERATIONS, LOCATION & SFRL

         9.1 JDC Location. As of the Effective Date, the JDC will be physically
located initially at a site in the Murray Hill, New Jersey area. The Parties may
move the physical location of the JDC by mutual consent.

         9.2 JDC Operations. The day-to-day operation of the JDC will be
directed by the Technical Board as supported by the Executive Board.

         9.3 Common Services. Except for the provision of Landlord Services
(under and as defined in the Lease Agreement) with respect to which Agere shall
pay additional rent to Lucent as required therein, Lucent and Agere will work
together to define the most efficient ways to provide common support services to
the JDC at mutually agreed to costs. Common support services will be benchmarked
periodically against competitors and industry benchmarks to determine their
current competitiveness and will be reviewed with the Executive Board. Common
support services that are available from outside sources at competitive prices
may be obtained from such sources unless precluded by written policies of either
Party. Common support services that are not available from outside sources will
be included as a common expense and all expenses of the JDC are to be shared
between the Parties unless otherwise agreed to in writing (subject to the terms
of the Lease Agreement).

         9.4 Facilities. The Parties, by mutual agreement and in accordance with
the Lease Agreement, will utilize the building, facilities, and infrastructure
and will manage the operations which support the JDC with sufficient capacity to
meet the objectives of the JDC. Each Party shall provide these assets as part of
that Party's financial commitments to the JDC as determined in Section 4.1.
Notwithstanding the foregoing, pursuant to the Lease Agreement, Lucent shall
retain any and all management control over the space leased under the Lease
Agreement.

         9.5 SFRL Location and Equipment Purchase Option.

                                      -20-
<PAGE>   24
         (i) Unless otherwise mutually agreed by the Parties and subject to the
Lease Agreement, the SFRL shall remain at its current location in Murray Hill,
New Jersey and Agere shall be responsible for the day-to-day operation and
staffing of the SFRL. Each Party shall have equal access to the SFRL for
carrying out the JDC activities hereunder.

         (ii) In the event Agere desires to remove a particular piece of MEMS
Equipment during the Term of this Agreement or upon expiration of this Agreement
or upon Agere's abandonment of the SFRL, Agere shall provide Lucent with written
notice of Agere's intent on removing such MEMS Equipment, such notice to be
provided three (3) months in advance of removal, and Lucent shall have an option
to purchase such MEMS Equipment prior to removal from SFRL at a purchase price
to be determined by Agere. Such purchase price to be determined taking into
account factors including, but not limited to, replacement costs, removal costs
and/or installation costs. If Lucent exercises the option to purchase the MEMS
Equipment, Lucent shall remit payment to Agere within a period to be mutually
agreed upon between the Parties.

         9.6 Lucent-Owned Flip Chip Bonder

         Lucent agrees that Agere shall have access to a certain Lucent-owned
flip-chip bonder apparatus, i.e., M8 alignment system from RD Automation,
currently located in Lucent's Murray Hill facility but external to the SFRL,
solely with respect to performance of the joint activities of the Parties under
Section 5.0 and Section 6.0 of this Agreement. In addition, Lucent expects to
install a M10 alignment system from RD Automation as a replacement to the
existing M8 alignment system in calendar 2001. If so replaced, Agere shall have
access to the M10 alignment system solely with respect to performance of the
joint activities of the Parties under Section 5.0 and Section 6.0 of this
Agreement. Access, under this Section, to this Lucent flip-chip bonder apparatus
shall be considered as part of Lucent's financial commitments to the JDC as
determined in Section 4.1. Notwithstanding the foregoing, the Parties recognize
that such apparatus has other non-JDC capabilities and may be used by Lucent for
such non-JDC related work on a reasonable basis, such basis not to materially
adversely impact the objectives of the JDC or performance of the Parties
hereunder.

         9.7 The Parties agree that any inconsistencies or conflicts arising
between the Lease Agreement and this Agreement with respect to the leased space
under the Lease Agreement, the payment of rent and additional rent, or
facilities issues associated with the JDC and/or the SFRL are to be resolved in
favor of the Lease Agreement.

                ARTICLE 10.0 - FURNISHING AND USE OF INFORMATION

         10.1 Furnishing of Information to Agere.

Lucent will, during the Term of this Agreement, as mutually agreed upon by
Lucent and Agere, furnish Lucent Information to Agere. With the delivery of such
Lucent Information, Agere will also be furnished a list which identifies the
Lucent Information delivered. The first such list shall include the Lucent
Background Technology as set forth in Appendix A and may be revised

                                      -21-
<PAGE>   25
from time to time by mutual agreement of the Parties hereto. Lucent and Agere
will promptly notify each other of any inaccuracies believed present in such
list or any amendments thereto. All Information specified on such list or
amended list will be deemed to be a part of Lucent Information with the
following qualification: if, within thirty (30) days after receipt of the list
or any amended list, Agere gives Lucent written notice specifying particular
information identified therein which was not actually received, such specified
information will be deemed deleted from the list or amended list until such
Information is actually received by Agere.

10.2 Furnishing of Information to Lucent.

Agere will, during the Term of this Agreement, as mutually agreed upon by Agere
and Lucent, furnish Agere Information to Lucent. With the delivery of such Agere
Information, Lucent will also be furnished a list which identifies Agere
Information delivered. The first such list shall include the Agere Background
Technology as set forth in Appendix B and may be revised from time to time by
mutual agreement of the Parties hereto. Agere and Lucent will promptly notify
each other of any inaccuracies believed present in such list or amendments
thereto. All Information specified on such list or amended list will be deemed
to be a part of Agere Information with the following qualification: if, within
thirty (30) days after receipt of such list or any amended list, Lucent gives
Agere written notice specifying particular information identified therein which
was not actually received, such specified information will be deemed deleted
from the list or amended list until such Information is actually received by
Lucent.

10.3 Agere and Lucent agree:

         (a) except as otherwise provided herein, that Agere will hold all
Lucent Information, MEMS Technical Information and Joint Information and Lucent
will hold all Agere Information, MEMS Technical Information and Joint
Information in confidence, if it is in writing or other tangible form and
clearly marked as proprietary or confidential when disclosed to the receiving
Party or, if not in tangible form, only if summarized in a writing so marked and
delivered to the receiving Party within thirty (30) days of such disclosure, for
a period of five (5) years after the date of disclosure, and neither Party will
make any disclosure of any or all of such other Party's Information to anyone,
except to its JDC Assignees, employees, agents or Contractors who have a need to
know and to any others to whom such disclosure may be expressly authorized
hereunder and is necessary to implement the use authorized hereunder, and that
each Party will appropriately notify each person to whom any such disclosure is
made that such disclosure is made in confidence and will be kept in confidence
by such person; provided that neither Party will have any confidentiality
obligations with respect to any portions of Lucent Information, Agere
Information, MEMS Technical Information or Joint Information, if any, (a) which
were previously known to the receiving Party free of any obligations to keep
confidential; or (b) which have become generally known to the public, provided
that such public knowledge was not the result of any act attributable to the
receiving Party; or (c) which the disclosing Party otherwise explicitly agrees
in writing need not be kept confidential; or (d) which is rightfully received
from a third party without any obligations regarding confidentiality; or (e)
which is independently developed by the receiving Party; or (f) which is
requested pursuant to a judicial or governmental request, requirement or order
under law, provided that the receiving Party

                                      -22-
<PAGE>   26
provides the disclosing Party with sufficient prior notice in order to contest
such request, requirement or order or seek protective measures.

         (b) that the receiving Party will not, without the disclosing Party's
express written permission, make or have made, or permit to be made, more copies
of any of the furnished Lucent Information or Agere Information than are
necessary for its use hereunder, or associated with subsequent design,
manufacturing or marketing efforts contemplated hereunder, and that each such
copy shall contain the same proprietary notices or legends which appear on the
furnished Lucent Information or Agere Information being copied;

         (c) that all Lucent Information will remain the property of Lucent, and
upon termination of this Agreement, Agere will, at Lucent's written request,
immediately cease all use of Lucent Information and will, as directed by Lucent,
promptly destroy or deliver to Lucent each and every part specified by Lucent of
Lucent Information then under Agere's or its Subsidiaries' control, except for
that Information specifically needed for support of MEMS Products and for
utilization of the Joint Information; and

         (d) that all Agere Information will remain the property of Agere, and
upon termination of this Agreement Lucent will, at Agere's written request,
immediately cease all use of Agere Information, and will, as directed by Agere,
promptly destroy or deliver to Agere each and every part specified by Agere of
Agere Information then under Lucent's or its Subsidiaries' control, except for
that Information specifically needed for support of MEMS Products and for
utilization of the Joint Information.

         10.4 Neither Party will be liable for the inadvertent or accidental
disclosure of MEMS Technical Information, Joint Information or Information
received from the other Party under this Agreement, provided such disclosure
occurs despite the exercise of a reasonable degree of care which is at least as
great as the care such Party normally takes to preserve its own proprietary
information of a similar nature; and provided further, however, that the Party
permitting any material unauthorized disclosure will use its best efforts to
stop any material unauthorized disclosure or use and to mitigate any damage
caused thereby.

         10.5 This Agreement will prevail in the event of any conflicting terms
or legends which may appear on Lucent Information, Agere Information, MEMS
Technical Information, Joint Information or on any other information exchanged
hereunder.

         10.6 Lucent believes that the Lucent Information is true and accurate,
and Agere believes that the Agere Information is true and accurate, but neither
Lucent nor Agere nor their respective Subsidiaries will be held to any liability
for errors or omissions therein.

                        ARTICLE 11.0 - NOTHING CONSTRUED

         11.1 Except as otherwise provided herein, in a Project Letter, or in
the Agere Supply Agreement, neither the execution of this Agreement nor anything
in it or in any Lucent

                                      -23-
<PAGE>   27
Information, Agere Information, MEMS Technical Information, or Joint Information
will be construed as providing or implying any arrangement or understanding that
either Party or its Subsidiaries will make any purchase from the other Party or
its Subsidiaries.

         11.2 Nothing in this Agreement shall be deemed or construed by the
Parties or any third party as creating the relationship of principal and agent,
partnership or joint venture between the Parties, it being understood and agreed
that no provision contained herein, and no act of the Parties, shall be deemed
to create any relationship between the Parties other than the relationship of
independent contractor.

    ARTICLE 12.0 - COMPLIANCE WITH RULES AND REGULATIONS AND INDEMNIFICATION

         12.1 Agere's personnel will, while on any location of Lucent in
connection with the work undertaken under this Agreement, comply with Lucent's
rules and regulations with regard to safety and security. Lucent will inform
such personnel of such rules and regulations. Agere will have full control over
such personnel and will be entirely responsible for their complying with
Lucent's rules and regulations. Agere agrees to indemnify and save Lucent
harmless from any claims or demands, including the costs, expenses and
reasonable attorneys' fees incurred on account thereof, that may be made by (i)
anyone for injuries to persons or damage to property to the extent they result
from the willful misconduct or negligence of Agere's personnel; or (ii) Agere's
personnel based on Worker's Compensation or any other employment related claims
to the extent such claims are based on acts of Agere. Agere agrees to defend
Lucent, at Lucent's request, against any such claim or demand.

         12.2 Lucent's personnel will, while on any location of Agere in
connection with the work undertaken under this Agreement, comply with Agere's
rules and regulations with regard to safety and security. Agere will inform such
personnel of such rules and regulations. Lucent will have full control over such
personnel and will be entirely responsible for their complying with Agere's
rules and regulations. Lucent agrees to indemnify and save Agere harmless from
any claims or demands, including the costs, expenses and reasonable attorneys'
fees incurred on account thereof, that may be made by (i) anyone for injuries to
persons or damage to property to the extent they result from the willful
misconduct or negligence of Lucent's personnel; or (ii) Lucent's personnel based
on Worker's Compensation or any other employment related claims to the extent
such claims are based on acts of Lucent. Lucent agrees to defend Agere, at
Agere's request, against any such claim or demand.

         12.3 Subject to Sections 12.1 and 12.2, each Party will be responsible
for its own expenses incurred by it and its employees hereunder, including, but
not limited to, travel, lodging, entertainment, employees' salary, wages or
other compensation, together with each Party's respective federal, state,
municipal or other taxes. Neither Party shall incur or assume any expense on
behalf of the other Party without prior written consent from the Party to be
charged.

                                      -24-
<PAGE>   28
         12.4 Lucent and Agere will, at all times, retain the administrative
supervision of their respective personnel.

                         ARTICLE 13.0 - NONSOLICITATION

         13.1 Throughout the Term of this Agreement and for a period of six (6)
months or any period that may be specified in the Separation and Distribution
Agreement, whichever is longer, after the expiration or termination of this
Agreement, the Parties agree that neither Party will knowingly solicit any JDC
Assignees of the other Party engaged in work at the JDC, unless such JDC
Assignees have previously terminated their employment with the Party for a
period of nine (9) months. The term "solicit" does not include advertisements,
generalized employment searches, and internal job posting systems that are not
specifically directed to employees of the other Party.

                             ARTICLE 14.0 - SURVIVAL

         14.1 Those obligations of Agere and Lucent under this Agreement which
of their very nature should survive in order to protect the various interests of
the Parties will survive and continue after any termination under this
Agreement.

                           ARTICLE 15.0 - TERMINATION

         15.1 This Agreement may be terminated prior to expiration of the Term
or any extensions thereof by: (i) written consent of both Parties, or (ii)
termination in accordance with this Article 15.0.

         15.2 For Convenience. Either Party may terminate this Agreement for
convenience upon ninety (90) days written notice to the other Party. By way of
example but not limitation, in the event one Party undergoes a change a control
(as defined in the Intellectual Property Agreement) the other Party not
experiencing such change in control may terminate this Agreement for
convenience.

         15.3 Agere Breach. If Agere fails to fulfill one or more of its
material obligations under this Agreement, Lucent may, upon its election and in
addition to any other remedies that it may have, at any time terminate this
Agreement by not less than sixty (60) days written notice to Agere specifying
any such breach, unless within the period of such notice all breaches specified
therein have been remedied to the non-breaching Party's reasonable satisfaction.
If the breach is not one which is capable of being cured within sixty (60) days
and the breaching Party has commenced to cure and remedy the breach within such
time and continues to do so diligently and in good faith, then the breaching
Party shall be granted an extension for a reasonable period of time at the
discretion of the non-breaching Party.

                                      -25-
<PAGE>   29
         15.4 Lucent Breach. If Lucent fails to fulfill one or more of its
material obligations under this Agreement, Agere may, upon its election and in
addition to any other remedies that it may have, at any time terminate this
Agreement by not less than sixty (60) days written notice to Lucent specifying
any such breach, unless within the period of such notice all breaches specified
therein have been remedied to the non-breaching Party's reasonable satisfaction.
If the breach is not one which is capable of being cured within sixty (60) days
and the breaching Party has commenced to cure and remedy the breach within such
time and continues to do so diligently and in good faith, then the breaching
Party shall be granted an extension for a reasonable period of time at the
discretion of the non-breaching Party.

         15.5 Termination will not excuse either Party from any obligations
incurred hereunder prior to the date of termination. For example, the Parties
agrees that in the event of any termination hereunder, all existing but
uncompleted Work Projects directed to approved Joint MEMS Product development
(pursuant to Article 6.0) will continue until completion or ninety (90) days
from the date of the termination notice, whichever is earlier. In addition, with
respect to completed Joint MEMS Product development, Agere agrees to supply such
Joint MEMS Products in accordance with Lucent's requirements until such time
that Lucent has established a qualified alternate source of such Joint MEMS
Products but in no event for a period longer than twelve (12) months from the
date of the termination notice.

         15.6 Any termination under this Agreement shall not affect the rights,
duties, or obligations of the Parties under any other agreement existing between
the Parties at the time of such termination.

         15.7 Upon expiration or termination of this Agreement, each Party will
immediately return all proprietary Information originated and owned solely by
the other Party, except for that which is necessary for support of MEMS Products
or for utilization of the Joint Information.

         15.8 Any termination of licenses and rights of a Party under the
provisions of this Article shall not affect that Party's licenses, rights and
obligations with respect to any products or services sold prior to such
termination and shall not affect the rights of any third party to whom such
product or service was sold or transferred prior to such termination. In
addition, in the event of a termination for material breach, the rights and
licenses granted to the non-breaching Party hereunder shall survive and continue
after any termination of this Agreement. Except for termination for material
breach, the Parties shall retain all rights and licenses hereunder in the event
of any termination of this Agreement.

       ARTICLE 16.0 - NO WARRANTY, DISCLAIMER AND LIMITATION OF LIABILITY

         16.1 FOR THE PURPOSES OF THE JDC, LUCENT AND ITS SUBSIDIARIES MAKE NO
REPRESENTATIONS OR WARRANTIES, EXPRESSLY OR IMPLIEDLY. BY WAY OF EXAMPLE BUT NOT
OF LIMITATION, LUCENT AND ITS SUBSIDIARIES MAKE NO REPRESENTATIONS OR WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF
LUCENT'S INFORMATION OR JOINT INFORMATION OR ANY OTHER INFORMATION

                                      -26-
<PAGE>   30
HEREUNDER WILL NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHT.
LUCENT AND ITS SUBSIDIARIES SHALL NOT BE HELD TO ANY LIABILITY WITH RESPECT TO
ANY CLAIM BY AGERE OR ANY THIRD PARTY ON ACCOUNT OF, OR ARISING FROM, THE USE OF
LUCENT'S INFORMATION OR JOINT INFORMATION OR ANY OTHER INFORMATION HEREUNDER.

         16.2 FOR THE PURPOSES OF THE JDC, AGERE AND ITS SUBSIDIARIES MAKE NO
REPRESENTATIONS OR WARRANTIES, EXPRESSLY OR IMPLIEDLY. BY WAY OF EXAMPLE BUT NOT
OF LIMITATION, AGERE AND ITS SUBSIDIARIES MAKE NO REPRESENTATIONS OR WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF
AGERE'S INFORMATION OR JOINT INFORMATION OR ANY OTHER INFORMATION HEREUNDER WILL
NOT INFRINGE ANY PATENT OR OTHER INTELLECTUAL PROPERTY RIGHT. AGERE AND ITS
SUBSIDIARIES SHALL NOT BE HELD TO ANY LIABILITY WITH RESPECT TO ANY CLAIM BY
LUCENT OR ANY THIRD PARTY ON ACCOUNT OF, OR ARISING FROM, THE USE OF AGERE'S
INFORMATION OR JOINT INFORMATION OR ANY OTHER INFORMATION HEREUNDER.

         16.3 NEITHER PARTY SHALL BE LIABLE FOR ANY INCIDENTAL, SPECIAL OR
CONSEQUENTIAL LOSS OR DAMAGE, INCLUDING LOST PROFITS OR LOST REVENUE ARISING OUT
OF THIS AGREEMENT, WHETHER ARISING OUT OF BREACH OF WARRANTY, BREACH OF
CONTRACT, NEGLIGENCE, STRICT TORT LIABILITY OR OTHERWISE.

                          ARTICLE 17.0 - EXPORT CONTROL

         17.1 Each Party hereby assures the other that it will not without a
license or license exception authorized by the Bureau of Export Administration
of the U.S. Department of Commerce, Washington, D.C. 20230, United States of
America, if required:

              (i)   export or release any information or software (including
                    source code) obtained pursuant to this Agreement to a
                    national of Country Groups D:1 or E:2 (15 C.F.R. Part 740,
                    Supp. 1), Iran, Iraq, Serbia, Sudan, or Syria; or

              (ii)  export to Country Groups D:1 or E:2, or to Iran, Iraq,
                    Serbia, Sudan, or Syria, the direct product (including
                    processes and services) of the information or software; or

              (iii) if the direct product of the information is a complete plant
                    or any major component of a plant, export to Country Groups
                    D:1 or E:2, or to Iran, Iraq, Serbia, Sudan, or Syria, the
                    direct product of the plant or major component.

                                      -27-
<PAGE>   31
This assurance will be honored even after the expiration or termination of this
Agreement.

                            ARTICLE 18.0 - PUBLICITY

18.1 The terms, but not the existence, of this Agreement shall be treated as
confidential information by the Parties, and neither Party shall disclose such
terms to any third party without the prior written consent of the other Party;
provided however, that each Party may represent to third parties that such Party
is licensed for the products and patents as provided by this Agreement. This
Section 18.1 shall not prevent a Party from making disclosures reasonably
required by law or as required by a stock exchange, provided that the disclosing
Party takes all reasonable steps to minimize such disclosure and provides prior
written notice to the other Party of any such intended disclosure.

18.2 Each Party will submit to the other all proposed advertising and publicity
material relating to the disclosure of this Agreement or the activities
undertaken in the JDC.

                      ARTICLE 19.0 - TRADEMARKS AND TRADENAMES

19.1 Nothing in this Agreement shall be construed as conferring upon either
Party or its Subsidiaries any right to include in advertising, packaging or
other commercial activities related to any product or service, any reference to
the other Party (or any of its Subsidiaries), its trade names, trademarks or
service marks in a manner which would be likely to cause confusion or to
indicate that such product or service is in any way certified by the other Party
hereto or its Subsidiaries.

                               ARTICLE 20.0 - NOTICES

20.1 All notices required or permitted under this Agreement shall be in writing
and shall be deemed given: (i) when delivered personally; (ii) when sent by
confirmed telex or facsimile; (iii) five (5) days after having been sent by
registered or certified mail, return receipt requested, postage prepaid; or (iv)
one (1) day after deposit with a commercial overnight carrier, with written
verification of receipt. All communications will be sent to the addresses set
forth below. Either Party may change its address by giving notice pursuant to
this section.

20.2 In addition, the Parties have specifically assigned the following persons
for technical matters relating to this Agreement. Also, the following named
persons shall be the persons authorized for furnishing and receiving Information
pursuant to this Agreement. Either Party may, by written notice to the other
Party, substitute another person for the person herein named.

For Lucent:             Technical Matters:      David Bishop
                                                Lucent Technologies Inc.
                                                600 Mountain Ave.
                                                Murray Hill, NJ 07974

                                      -28-
<PAGE>   32

                        Real Estate Matters:    Lucent Technologies Inc.
                                                475 South St.
                                                Morristown, NJ 07967
                                                Attn: Contract Administrator

                        With copy to:           Corporate Counsel - Real Estate
                                                Lucent Technologies Inc.
                                                475 South St.
                                                Morristown, NJ 07967

                        All Other Matters:      Josephine Yuen
                                                Lucent Technologies Inc.
                                                600 Mountain Ave.
                                                Murray Hill, NJ 07974

                        With a copy to:         Cherry Murray
                                                Lucent Technologies Inc.
                                                600 Mountain Ave.
                                                Murray Hill, NJ 07974

                                                Contract Administration
                                                Intellectual Property Business
                                                Lucent Technologies Inc.
                                                184 Liberty Corner Road
                                                Liberty Corner, NJ 07938

For Agere:              Technical Matters:      Tom Koch
                                                Agere Systems Inc.
                                                9999 Hamilton Blvd.
                                                Breinigsville, PA  18031

                        Real Estate Matters:    Agere Systems Inc.
                                                555 Union Blvd.
                                                Allentown, PA 18109
                                                Attn: Director - Worldwide
                                                Facilities

                        With copy to:           Corporate Counsel - Real Estate
                                                Agere Systems Inc.
                                                555 Union Blvd.
                                                Allentown, PA 18109

                        All Other Matters:      Ray Nering
                                                Agere Systems Inc.

                                      -29-
<PAGE>   33

                                                9999 Hamilton Blvd.
                                                Breinigsville, PA  18031

                        With a copy to:         Gerard deBlasi
                                                Agere Systems Inc.
                                                Law Department
                                                2 Oak Way
                                                Berkeley Heights, NJ 07922

                   ARTICLE 21.0 - MISCELLANEOUS PROVISIONS

21.1 Integration. The terms and conditions contained in this Agreement and its
attachments supersede all prior oral or written understandings between the
Parties and together with the Intellectual Property Agreements, Project Letters,
the Overall Operations Plan, and the Overall Technical Plan, and any subsequent
plans approved by the Executive Board, will constitute the entire Agreement
between the Parties with respect to the subject matter of this Agreement.
Neither of the Parties will be bound by any warranties, understandings or
representations with respect to the subject matter hereof other than as
expressly provided herein. This Agreement will not be modified or amended except
by a writing signed by Lucent and Agere.

21.2  Nonassignability.

(a) The Parties hereto have entered into this Agreement in contemplation of
personal performance, each by the other, and intend that the rights granted
hereunder to a Party and such Party' obligations not be extended to entities
other than such Party's Subsidiaries without the other Party's express prior
written consent.

(b) Notwithstanding the foregoing, each Party's rights, title, interest and
obligations under this Agreement, and any rights granted to each Party hereunder
may be assigned only to any direct or indirect successor to the business of such
Party as the result of any internal reorganization, which successor shall
thereafter be deemed substituted for such Party as the Party hereof, effective
upon such assignment; but neither this Agreement nor any rights or obligations
hereunder shall be otherwise assignable or transferable (in insolvency
proceedings or otherwise) by either Party without the express written consent of
the other Party.

(c) Notwithstanding the foregoing, either Party may assign all or part of its
rights and obligations to any successor in interest of all or substantially all
of the assets of its business.

21.3 Force Majeure. Neither Party shall be liable for delays in delivery or
performance when caused by any of the following which are beyond the actual
control of the delayed Party: (i) acts of God, (ii) acts of the public enemy,
(iii) acts or failure to act by the other Party, (iv) acts of civil or military
authority, (v) governmental priorities, strikes or other labor disturbances,
(vi) hurricanes, (vii) earthquakes, (viii) fires, (ix) floods, (x) epidemics,
(xi) embargoes, (xii) war, (xiii) riots, (xiv) delays in transportation, and
(xv) loss or damage to goods in transit.

                                      -30-
<PAGE>   34

21.4 Choice of Law. The Parties hereto desire and agree that the laws of the
State of New York, exclusive of its conflict of laws provisions, will apply in
any dispute or controversy arising with respect to this Agreement.

21.5 Headings. All section headings, including those in the Appendices, are for
convenience purposes only and will in no way affect, or be used, in
interpretation of this Agreement.

21.6 Waiver. No failure, delay, relaxation or indulgence on the part of either
Party in exercising any power or right conferred upon such Party under the terms
of this Agreement will operate as a waiver of such power or right nor will any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right under this
Agreement.

21.7 Releases Void. Neither Party shall require waivers or releases of any
personal rights from representatives of the other in connection with visits to
its premises and both Parties agree that no such releases or waivers shall be
pleaded by them or third persons in any action or proceeding.

21.8 Power To Sign. Agere and Lucent warrant that their respective
representatives signing this Agreement have full power and proper authority to
sign this Agreement and so bind the Parties.

21.9 Severability. If any term, clause, or provision of this Agreement shall be
judged to be invalid, the validity of any other term, clause, or provision will
not be affected; and such invalid term, clause, or provision will be deemed
deleted from this Agreement.

21.10 Auditor. In the event the Parties should have need for the services of any
auditors to monitor or assess the financial activities of the JDC, then the
current auditors for each Party hereto will mutually agree upon the selection of
an auditor to audit the financial activities of the JDC.

                        ARTICLE 22.0 - DISPUTE RESOLUTION

22.1 It is the intent of the Parties to use their respective reasonable best
efforts to resolve expeditiously any dispute, controversy or claim between or
among them with respect to the matters covered hereby that may arise from time
to time on a mutually acceptable negotiated basis. In furtherance of the
foregoing, in the event of a dispute between the Parties, or individual members
of the Executive Board or Technical Board, or on any matter requiring the mutual
approval of their respective Executive Board members or each other, the issue
first will be escalated to the complete Executive Board for attempted resolution
within a reasonable period of time.

22.2 Either Party may initiate dispute resolution by notice to the other Party.
Such notice will be without prejudice to the invoking Party's rights to any
other remedy permitted hereunder.

                                      -31-
<PAGE>   35

The Parties will use commercially reasonable efforts to arrange meetings or
telephone conferences, as needed, at mutually convenient times and places, to
facilitate negotiations between the Parties.

22.3 In the event that the Parties fail or are unable to resolve a dispute
between them after exhausting the resolution process of Section 22.1, the
Parties agree to attempt to further resolve the dispute pursuant to the
escalation provision set forth in Section 22.4 below.

22.4 (a) In furtherance of the foregoing, after exhausting the provisions of
Sections 22.1-22.3, any Party involved in a dispute, controversy or claim
hereunder may deliver a notice (an "Escalation Notice") demanding an in person
meeting involving representatives of the Parties at a senior level of management
of the Parties (or if the Parties agree, of the appropriate strategic business
unit or division within such entity). A copy of any such Escalation Notice shall
be given to the General Counsel, or like officer or official, of each Party
involved in the dispute, controversy or claim (which copy shall state that it is
an Escalation Notice pursuant to this Agreement). Any agenda, location or
procedures for such discussions or negotiations between the Parties may be
established by the Parties from time to time; provided, however, that the
Parties shall use their reasonable best efforts to meet within 30 days of the
Escalation Notice.

(b) If the Parties are not able to resolve the dispute, controversy or claim
through the escalation process referred to above, then the matter shall be
referred to mediation. The Parties shall retain a mediator to aid the Parties in
their discussions and negotiations by informally providing advice to the
Parties. Any opinion expressed by the mediator shall be strictly advisory and
shall not be binding on the Parties, nor shall any opinion expressed by the
mediator be admissible in any other proceeding. The mediator may be chosen from
a list of mediators previously selected by the Parties or by other agreement of
the Parties. Costs of the mediation shall be borne equally by the Parties
involved in the matter, except that each Party shall be responsible for its own
expenses. Mediation shall be a prerequisite to the commencement of any action by
either Party.

22.5  Court Actions

(a) In the event that any Party, after complying with the provisions set forth
in Sections 22.1-22.4 above, desires to commence an Action (as such term is
defined in the Separation and Distribution Agreement), such Party may submit the
dispute, controversy or claim (or such series of related disputes, controversies
or claims) to any court of competent jurisdiction.

(b) Unless otherwise agreed in writing, the Parties will continue to provide
service and honor all other commitments under this Agreement and each Ancillary
Agreement (as such term is defined in the Separation and Distribution Agreement)
during the course of dispute resolution pursuant to the provisions of this
Article with respect to all matters not subject to such dispute, controversy or
claim.

                                      -32-
<PAGE>   36

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
in duplicate originals by their duly authorized representatives on the
respective dates entered below.

LUCENT TECHNOLOGIES INC.                       AGERE SYSTEMS INC.

By: /s/  DANIEL P. MCCURDY                      By: /s/ MARK R. PINTO
   ----------------------------                   -----------------------------
   Daniel P. McCurdy                              Mark R. Pinto
   President, Intellectual Property Business      Platform Technology VP and CTO

Date: January 30, 2001                          Date: January 30, 2001
      ----------------                                ----------------

LUCENT TECHNOLOGIES INC.
On behalf of its Bell Laboratories Division

By: /s/ WILLIAM F. BRINKMAN
    ---------------------------------
          William F. Brinkman
          Vice President, Research

Date:  January 30, 2001
       ----------------

              THIS AGREEMENT DOES NOT BIND OR OBLIGATE ANY PARTY
               IN ANY MANNER UNLESS DULY EXECUTED BY AUTHORIZED
                         REPRESENTATIVES OF ALL PARTIES

                                      33<PAGE>   1
                                                                   EXHIBIT 10.16

                                                                  EXECUTION COPY

                        FIBER PRODUCT PURCHASE AGREEMENT

                                 by and between

                            LUCENT TECHNOLOGIES INC.

                                       and

                               AGERE SYSTEMS INC.

                          Dated as of February 1, 2001
<PAGE>   2
                        FIBER PRODUCT PURCHASE AGREEMENT

THIS FIBER PRODUCT PURCHASE AGREEMENT (this "Agreement"), effective as of
February 1, 2001 (the "Effective Date"), is by and between Lucent Technologies
Inc., a Delaware corporation, with offices at 600 Mountain Avenue, Murray Hill,
New Jersey 07974 ("Lucent"), and Agere Systems Inc., a Delaware corporation,
with offices at 555 Union Blvd., Allentown, Pennsylvania 18103 ("Customer").

                                 R E C I T A L S

     A. WHEREAS, the Board of Directors of Lucent has determined that it is in
the best interests of Lucent and its stockholders to separate Lucent's existing
businesses into two independent businesses;

     B. WHEREAS, in furtherance of the foregoing separation, Lucent and Customer
desire to enter into this Agreement to provide for certain commercial
transactions between the parties as described in Section 3, Scope of the
Agreement, of this Agreement;

     NOW, THEREFORE, in consideration of the premises and for other good and
valid consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, agree as follows:

1.   DEFINITIONS

     For the purposes of this Agreement, in addition to the words and phrases
that are defined throughout the body of this Agreement, the following words and
phrases shall have the following meanings:

     "Affiliate" of any Person means a Person that controls, is controlled by,
or is under common control with such Person. As used herein, "control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such entity, whether through
ownership of voting securities or other interests, by contract or otherwise.

     "Confidential Information" means all nonpublic information in whatever
form, including, without limitation, specifications (excluding data sheets and
product information generally made available to customers), drawings,
documentation, know-how, pricing, and licensed materials, which may be disclosed
by either party to the other party and which bears a legend or notice regarding
its proprietary or confidential nature or, if not in tangible form, which the
disclosing party describes as proprietary or confidential at the time of
disclosure and subsequently sends a written summary to the receiving party
within thirty (30) days of disclosure.

     "Firmware" means a combination of (1) hardware and (2) Software represented
by a pattern of bits contained in such hardware.
<PAGE>   3
     "Governmental Authority" means any federal, state, local, foreign or
international court, government, department, commission, board, bureau, agency,
official or other regulatory, administrative or governmental authority.

     "OEM Customer" is defined as a customer who purchases components and/or
assemblies from Customer which components and/or assemblies incorporate one or
more of the Products into a finished product manufactured by such customer.

     "Order" means a written (paper or electronic) purchase order issued by
Customer to Lucent, which refers to this Agreement and any firm price quotation
and specifies (i) the quantity and type of Products being ordered and their
applicable prices, charges or fees; (ii) accurate "ship to" and "bill to"
addresses; and (iii) the requested delivery date consistent with Lucent's
standard interval between acceptance of an Order and delivery. An electronic
Order shall be effective despite the absence of Customer's signature.

     "Person" means an individual, a general or limited partnership, a
corporation, a trust, a joint venture, an unincorporated organization, a limited
liability entity, any other entity and any Governmental Authority.

     "Product" means the Specialty Fiber Products and Fiber Optic Apparatus
identified in Schedule 3 hereto and such other Specialty Fiber Products and
Fiber Optic Apparatus as the parties may add by written agreement from time to
time, but does not include Software, Firmware or Services.

     "Services" means engineering, installation, consulting or other services.

     "Software" means a computer program, in machine-readable or object-code
form, consisting of a set of logical instructions and tables of information that
guide the functioning of a processor. Such program may be contained in any
medium whatsoever, including Firmware, representing such program, but does not
include such medium.

     "Specifications" means Lucent's or its vendor's written technical
specifications for a particular Product furnished under this Agreement.

2.   TERM

     The term of this Agreement shall commence on the Effective Date and shall
expire on January 31, 2004, unless earlier terminated in accordance with the
provisions hereof (the "Term"). The Term may be extended for additional one (1)
year periods upon the mutual written agreement of the parties. The rights and
obligations of the parties which by their nature would continue beyond the
termination, cancellation, or expiration of this Agreement, shall survive such
termination, cancellation or expiration.

                                       2
<PAGE>   4
3.   SCOPE OF THE AGREEMENT

     (a) This Agreement covers the sale to Customer and its Affiliates by Lucent
and its Affiliates of Products listed in Schedule 3 for the sole purpose of
incorporation into finished products to be sold by Customer to OEM Customers.
Customer will not resell the Products independent from and separate from the
finished products referred to in the previous sentence.

     (b) The only Products covered by this Agreement are those (a) listed on
Schedule 3, or (b) offered by Lucent to Customer under this Agreement by written
notice. Customer may purchase other product of a similar merchandise class code
to that set forth in Schedule 3 from Lucent's catalog (print or electronic) at
Lucent's standard customer price.

     (c) If during the term of this Agreement, Lucent introduces and makes
generally available in the marketplace similar product to that purchased
hereunder, Lucent will offer to Customer the right to purchase such new product.
Lucent's offer will be in writing and will contain a full description of the
terms on which the product is to be delivered. To accept the offer, Customer
must deliver to Lucent written notice of acceptance within thirty (30) days
after Customer receives the offer. If Customer accepts Lucent's offer, Customer
will purchase the product on the terms accepted.

     (d) The relationship of the parties under this Agreement shall be, and at
all times remain, one of independent contractors and not that of franchiser and
franchisee, joint venturers, or principal and agent. Neither party shall have
any authority to assume or create obligations on the other's behalf with respect
to such Products, and neither party shall take any action which has the effect
of creating the appearance of its having such authority.

     (e) Neither party is, or shall hold itself out to be, the representative of
the other. Customer shall market components and/or assemblies that incorporate
the Products to OEM Customers on such terms and conditions as Customer chooses,
provided Customer does not violate this Agreement.

     (f) The provisions of this Agreement are solely for the benefit of the
parties and are not intended to confer upon any Person except the parties any
rights or remedies hereunder, and there are no third party beneficiaries of this
Agreement, and this Agreement shall not provide any third Person with any
remedy, claim, liability, reimbursement, claim of action or other right in
addition to those existing without reference to this Agreement.

     (g) All persons furnished by Customer shall be considered solely Customer's
employees or agents, and Customer shall be responsible for payment of all
unemployment, Social Security and other payroll taxes including contributions
from them when required by law.

                                       3
<PAGE>   5
4.  EXPORT

The parties acknowledge that any Products, software, and technical information
(including, but not limited to, Services and training) provided under this
Agreement are subject to U.S. export laws and regulations and any use or
transfer of such Products, software, and technical information must be
authorized under those laws and regulations. The parties agree that they will
not use, distribute, transfer, or transmit the Products, software, or technical
information (even if incorporated into other products) except in compliance with
U.S. export regulations. If requested by Lucent, Customer also agrees to sign
written assurances and other export-related documents as may be required for
Lucent to comply with U.S. export regulations.

5.   ORDERS; CHANGES TO ORDERS; ACCEPTANCE; CANCELLATION OF ORDERS;
     INTERNATIONAL ORDERS

     (a) All purchases under this Agreement shall be made by Orders issued by
Customer from time to time and accepted or rejected by Lucent in writing. Each
Order shall reference this Agreement and shall be subject only to the terms and
conditions of this Agreement. Terms and conditions on an Order which are
inconsistent with this Agreement, and any pre-printed terms and conditions on an
Order, shall be ineffective and void unless otherwise agreed in writing by the
Parties.

     (b) All Purchase Orders shall contain the information necessary for Lucent
to fulfill the Order. Such information shall include:

          (i) A reference to this Agreement;

          (ii) An Order date and a purchase Order number;

          (iii) The address to which Products are to be delivered and the
     address to which Lucent's invoice is to be sent and;

          (iv) A description of the Products ordered, including but not limited
     to, the comcode.

     (c) Customer shall forward Purchase Orders to the following address or such
address as Lucent may direct by written notice to Customer:

          (i) For Specialty Fibers - Somerset products identified in Schedule
     3.1, Orders shall

                                       4
<PAGE>   6
         be forwarded to:

                  Lucent Technologies
                  Customer Service
                  14528 S. Outer Forty Road, Suite 400
                  Chesterfield, MO  63011

                  Phone: (800) 611-1436
                  Fax: (314) 317-6541

          (ii) For Specialty Fiber - Avon CT products identified in Schedule
     3.2, Orders shall be forwarded to:

                  Lucent Specialty Fiber Technologies
                  Customer Service
                  55 Darling Drive
                  PO Box 1260
                  Avon, CT 06001

                  Phone: (860) 678-0371
                  Fax: (860) 678-6505

          (iii) For FOA Products identified in Schedule 3.3, Orders shall be
     forwarded to:

                  Lucent Technologies
                  Customer Service
                  14528 S. Outer Forty Road, Suite 400
                  Chesterfield, MO  63011

                  Phone: (800) 611-1436
                  Fax:  (314) 317-6541

     (d) Customer may request changes to an Order ("Change Request") that Lucent
has previously accepted. In response to a Change Request, Lucent will provide
written quotations, including any changes to prices, license fees, shipment or
completion dates. A Change Request will be treated as a separate Order subject
to Lucent's change order process.

     (e) Products on any purchase Order may not be canceled after delivery by
Lucent to a carrier for shipment to Customer. For those Products in Schedule 3
not subject to Section 6 of this Agreement, Lucent may invoice Customer for all
charges and costs incurred by reason of cancellation within the lead time and
prior to delivery by Lucent to a carrier for shipment to Customer.

     (f) Customer and any of its Affiliates in the United States may place or
enter into Orders under this Agreement for the purchase of Products in the
United States. In the event that

                                       5
<PAGE>   7
Customer wants to procure Products outside the United States, Orders for Product
shall be placed on the appropriate Lucent Affiliate, and the following procedure
shall apply. As used herein, "Lucent" refers to the particular Lucent entity
accepting the Order.

         (i) Prior to submitting or entering into an Order under this Agreement,
     the non-U.S. Customer Affiliate and the relevant Lucent Affiliate shall
     sign a Letter of Acceptance ("LOA") in substantially the form set forth in
     Schedule 5 committing them to utilize the terms and conditions of this
     Agreement in any forthcoming procurement of Products in their location,
     subject to any modified, additional, or deleted terms as set forth in the
     LOA. Each LOA shall state the Lucent Affiliate, the non-U.S. Customer
     Affiliate, the applicable Products, and the geographical area to which it
     applies. Each LOA will incorporate by reference the master terms and
     conditions of this Agreement and will specify any agreed upon changes
     required by local law or local operational practice. Such additional terms
     may include, but shall not be limited to delivery terms, passage of title,
     or choice of law. Notwithstanding the foregoing, any pricing terms shall
     continue to be subject to Section 7, Favored Customer Pricing. The Parties
     intend that the terms and conditions of the Agreement shall apply, except
     with respect to those mutually agreed upon provisions which are required to
     address (1) local laws/regulations or (2) operational issues resulting from
     transacting in the particular country identified in the relevant LOA. Each
     LOA shall be deemed a separate contract between the parties who sign it,
     and each party identified in such LOA shall look only to the other for
     performance of their respective obligations under such LOA and any Order
     placed pursuant to it. Once an LOA has been executed by the relevant
     parties, multiple Orders may be placed under such LOA.

         (ii) For deliveries outside of the United States only, should there be
     a conflict between the terms and conditions of an LOA and this Agreement,
     the terms of the LOA shall prevail. Once an LOA for a specific geographic
     area is executed by both parties, Orders may be placed under the LOA
     following the procedures set forth herein (unless modified or amended by
     the relevant LOA).

6.   FORECAST; CUSTOMER'S PURCHASE COMMITMENT; INVENTORY; LUCENT'S COMMITMENT

     The provisions of this Section 6 shall apply solely to the Specialty Fiber
Products described in Schedules 3.1 and 3.2 and any custom Product added to
Schedule 3.3. The commitment described in this Section 6 shall be referred to as
the "Purchase Commitment."

     (a) Customer shall:

         (i) Provide Lucent with an initial twelve (12) month rolling forecast
     of Product requirements within four (4) weeks of the Effective Date of this
     Agreement. Lucent shall notify Customer if it cannot reasonably meet the
     initial forecast and the Parties shall meet and negotiate in good faith to
     resolve any disagreements as to the initial forecast. Thereafter, Customer
     shall update the forecast weekly. Any increase in the forecast shall not
     exceed the reserve capacity specified in Schedule 3. If no such reserve
     capacity is specified and Lucent

                                       6
<PAGE>   8
     reasonably believes it cannot meet the increased forecast, the Parties
     shall meet to agree on an acceptable forecast.

         (ii) The first twelve (12) weeks of each such updated weekly forecast
     shall be considered a binding commitment ("Binding Commitment") on the part
     of Customer and Customer shall be committed to spend the total dollar
     volume of each such rolling twelve week forecast. Customer may not alter
     the mix of specific Products forecast for the first four (4) weeks of each
     updated twelve week forecast absent agreement by Lucent. The remaining
     eight (8) weeks shall be a Binding Commitment on the part of Customer;
     provided, however, Customer may alter the mix of forecasted Products within
     Product groups (as such Product groups are identified in Schedules 3.1 and
     3.2 or any custom Product added to Schedule 3.3) in subsequent weekly
     updates.

         (iii) During the Term, directly procure from Lucent no less than its
     total requirements for Products in Schedule 3.1 or compensate Lucent as
     described in Section 6, Subsection (e). The Parties shall confer from time
     to time and when the Parties agree production capacity for the Products
     described in Schedule 3.2 are sufficient to meet such requirements,
     Customer shall thereafter procure from Lucent no less than its total
     requirements for Products in Schedule 3.2 or compensate Lucent as described
     in Section 6, Subsection (e). In addition, Customer agrees to provide
     Lucent the right of first refusal on any additional products similar to the
     Products herein that it requires during the Term.

     (b) Lucent shall:

          (i) Invest in capital and resources to fully support the forecast as
     Lucent in its sole discretion deems reasonably necessary.

         (ii) Maintain sufficient floor space, labor resources and
     material/component part supply (including effective buffer stocking) to
     support Product demand as described in Schedules 3.1 and 3.2 and any custom
     Product added to Schedule 3.3.

         (iii) Adhere to the forecast or a subsequent scheduling mechanism, if
     enacted, or be responsible for compensating Customer as described in
     Section 6, Subsection (f).

         (iv) Provide Customer's Materials Manager with weekly advanced delivery
     commitments for the following four (4) week period.

         (v) Provide Customer with early warning notification for all delivery
     shortages at the time the impacting circumstances are identified, and to
     follow such occurrence with an initial delivery recovery response within
     forty-eight (48) hours.

          (vi) Maintain an inventory buffer stock as defined in Schedule 3.1.

                                       7
<PAGE>   9
     (c) Customer and Lucent agree to meet at least four (4) times per year to
reconcile any discrepancies of past deliveries per this Agreement and to
re-establish the demand for the remainder of the twelve (12) month period.

     (d) Procurement Shortfall - Exclusive Remedies. Should Customer's purchases
fall short of the Binding Commitment referenced in Section 6(a)(ii)
("Procurement Shortfall"), then Customer's entire liability and Lucent's
exclusive remedy against Customer shall be that Customer agrees to procure one
hundred percent (100%) of the Product units acknowledged in the Binding
Commitment. In cases where another agreement between Customer and Lucent has
been or will be negotiated, prices will be in accordance with the negotiated
agreement. Upon termination of an Order by Customer outside the Binding
Commitment, Lucent will immediately: (i) cease work; (ii) prepare and submit to
Customer an itemization of all completed and partially completed Products; (iii)
deliver to Customer Products satisfactorily completed up to the date of
termination at the agreed upon prices in the relevant Order; and (iv) deliver
upon request any work in process. In the event Customer terminates an Order
outside the Binding Commitment, Customer shall compensate Lucent for the actual
and reasonable expenses incurred by Lucent for work in process up to and
including the date of termination provided Lucent uses reasonable efforts to
mitigate Customer's liability under this Subsection by, among other actions,
accepting the return of, returning to its suppliers, selling to others, or
otherwise using the canceled Products (including raw materials or work in
process) and provided such expenses do not exceed the prices agreed to in the
relevant Order. If requested by the Customer, Lucent will substantiate the
incurred costs for work in process and the purchase price of raw materials and
components with proof reasonably satisfactory to Customer. Upon any termination
of an Order, the parties shall meet promptly to determine the finished Product,
work in process, components, and raw materials for which Customer is responsible
as set forth above. Upon the parties agreeing on the amount of Customer's
liability for termination hereunder, Lucent shall, at Customer's option and
expense, ship to Customer or scrap such finished Product, work in process and
raw materials and components for which Customer is liable under this section.

     (e) Requirements Shortfall - Exclusive Remedies. Should Customer's
purchases fall short of the Customer's total requirements as referenced in
Section 6(a)(iii) or result from procurement for which Lucent was not given the
right of first refusal ("Requirements Shortfall"), then Customer's entire
liability and Lucent's exclusive remedy against Customer shall be that Customer
agrees to pay a sum equal to the number of units procured from other sources
multiplied by Lucent's price for the substantially same Product. In cases where
another agreement between Customer and Lucent has been or will be negotiated,
prices will be in accordance with the negotiated agreement.

     (f) Delivery Shortfall - Exclusive Remedies

          (i) Customer shall monitor delivery to consignment demand.

                                       8
<PAGE>   10
          (ii) Lucent's entire liability and Customer's exclusive remedies
     against Lucent for any damages caused by or arising from failure to deliver
     or delays in delivery of weekly requirements ("delivery shortfall") shall
     be:

              (x) If Lucent fails to deliver between ten percent (10%) and
         twenty percent (20%) of any Product per quarterly requirements, then
         Lucent shall credit Customer with a five percent (5%) price reduction
         for the Product delivered.

              (y) If Lucent fails to deliver twenty percent (20%) or more of any
         Product per quarterly requirements, then Lucent shall credit Customer
         with a ten percent (10%) price reduction for the Product delivered.

         (iii) Customer shall assess credits and compensations, resulting from
     Lucent's failure to deliver, during quarterly reviews. Lucent shall apply
     the assessed credit or pay the assessed compensation to Customer within
     four (4) weeks of assessment.

         (iv) To the extent that any percent price reduction or assessed credit
     cannot be satisfied, Lucent will pay Customer the amount that cannot be
     deducted from the amount is assessed.

     (g) In the event this Agreement is terminated prior to the completion of
the Term, Customer shall be obligated to pay for any outstanding Purchase
Commitment not satisfied prior to the effective date of such termination. The
provisions of this Section 6 shall survive the expiration or earlier termination
of this Agreement.

7.   FAVORED CUSTOMER PRICING

     The provisions of this Section 7 shall apply solely to the Specialty Fiber
Products described in Schedules 3.1 and 3.2 and any custom Product added to
Schedule 3.3.

     Provided Customer purchases and pays for the committed volumes set forth in
this Agreement, the price to Customer for each Product (as determined by the
comcode) during a calendar year will be no less favorable (taking into account
the terms and conditions to other customers) than the price Lucent charges to
its other customers in the same country (other than Lucent distributors or VARs,
or Lucent internal customers, either directly or through their contract
manufacturers; and special pricing associated with one time product promotional
sales and special inventory clearances) which purchase the same or greater
quantities of the same Products (i.e. a product with the same comcode) in the
same calendar year under substantially similar terms and conditions ("Favored
Customer Pricing").

     For purposes of this Section 7, the term "other customers" shall exclude
Affiliates of Lucent, distributors, resellers, sales agents, federal, state,
municipal and other governmental entities. Further, the following sales shall
not be considered in any price comparisons: market entry sales, promotional
offers or the provision of laboratory, trial, test and demonstration Product.

                                       9
<PAGE>   11
8.   ELECTRONIC DATA INTERCHANGE

     Lucent agrees, if requested by Customer, to implement Electronic Data
Interchange ("EDI") as an electronic means of trading business documents with
Customer. The electronic business documents include Orders, acknowledgments,
Order changes, ship notices, invoices, remittance advice, electronic funds
transfer ("EFT") or such purchasing communications as may be requested by
Customer for transactions under this Agreement. Lucent shall, at its sole
expense, obtain, make fully operational and maintain all equipment, software and
other materials set forth in Customer's EDI Planning Guide. Lucent shall also
execute an Electronic Purchasing Agreement with Customer at the time of
Customer's request to initiate EDI as described in this section.

9.   SPECIAL TOOLING AND EQUIPMENT

Any special tooling, test equipment, designs or other facilities Lucent
acquires, produces or uses within processes in connection with the Products
shall be Lucent's sole property.

10.  PRODUCT MAKEUP AND CHANGES

     Lucent shall have the right, in Lucent's sole discretion to change the
design or to discontinue the manufacture or availability to Customer of any
Product.

     (a) In the event that any such design change affects the form, fit, or
function of the Product, then Lucent shall notify Customer of such change when
Lucent becomes aware of such change and no later than sixty (60) days before the
change becomes effective. If Lucent and Customer are unable to reach mutual
acceptance of the change within thirty (30) days from notification to the
Customer, Lucent may implement such change at Lucent's sole discretion and the
Customer may as its exclusive remedies have the following options:

          (i) Cancel any outstanding purchase Orders for undelivered Products
     affected by the design change without incurring any cancellation charges
     for the Product provided that the design change is the reason for the
     cancellation, and,

          (ii) have the option of a last buy quantity of Product, or;

          (iii) continue to purchase changed Product at terms defined in this
     Agreement.

     (b) For discontinuance of manufacturing or availability of the Product
identified in Schedule 3.1 to the Customer, Lucent will notify Customer of such
intent no later than one (1) year before implementation. In the case of Product
identified in Schedules 3.2 and 3.3, such notice shall be made no later than six
(6) months before implementation. Customer may as its exclusive remedies have
the following options:

          (i) Cancel any outstanding purchase Orders for undelivered Products
     without incurring any cancellation charges for the Product; or

                                       10
<PAGE>   12
          (ii) have the option of a last buy quantity of Product.

     (c) Lucent cannot guarantee compatibility, of Products hereunder, with
Customer's unique host environments and with future generations of other Lucent
products.

     (d) In the event of a mandatory change defined herein as: any change
required to insure that the material, spares and repairs, (i) meet the
applicable Product purchase specification(s), (ii) are safe, and (iii) comply
with applicable laws, Lucent and Customer will define a mutually agreed to
process for mandatory change implementation.

11.  PRICES; TAXES

     (a) The applicable prices and charges for each Order shall be as set forth
in Schedule 3 or in a firm price quotation made by Lucent or, if not set forth
in either of those, in Lucent's customer price lists in effect on the day Lucent
receives the Order. All firm price quotes shall be deemed to incorporate this
Agreement.

     (b) Prices for the Products listed in Schedule 3 are firm for twelve (12)
months from the Effective Date of this Agreement. Thereafter, Lucent may make
changes to the prices by providing sixty (60) days notice to the Customer prior
to the effective date of such price changes. In addition, the Parties agree to
meet annually to discuss the then current pricing for possible adjustment in the
following year commencing with the second year of this Agreement. Price quotes
for products not included in Schedule 3 shall be valid for thirty (30) days. If,
however, Lucent's adjustment in price is due to changes in raw material prices,
Lucent's price adjustment will be effective on the first day of the next
calendar month. The prices and charges are based on Lucent's standard, published
intervals for shipping, planning or completion, unless Lucent otherwise agrees
in writing.

     (c) The parties agree taxes shall allocated as follows:

         (i) Customer shall bear all taxes, duties, levies and similar charges
     (and any related interest and penalties), however designated, imposed as a
     result of the existence or operation of this Agreement, except (i) any tax
     imposed upon Lucent in a jurisdiction other than the jurisdiction under the
     laws of which Lucent was formed (hereinafter referred to as the "Resident
     Jurisdiction") if such tax is allowable as a credit against the Resident
     Jurisdiction income taxes of Lucent; and (ii) any net income tax imposed
     upon Lucent by any government entity within Lucent's Resident Jurisdiction.
     In order for the exception contained in (i) to apply, Customer must furnish
     Lucent with such evidence as may be required by the Resident Jurisdiction
     taxing authorities to establish that such tax has been paid within thirty
     (30) days of issuance of notice by the local taxing authority so that
     Lucent may claim the credit.

         (ii) If Customer is required to bear a tax, duty, levy or similar
     charge pursuant to the preceding paragraph, Customer shall pay such tax,
     duty, levy or similar charge and any additional amounts as are necessary to
     ensure that the net amounts received by Lucent hereunder

                                       11
<PAGE>   13
     after all such payments or withholdings equal the amounts to which Lucent
     is otherwise entitled under this Agreement as if such tax, duty, levy or
     similar charge did not exist.

          (iii) Lucent shall not collect an otherwise applicable tax if
     Customer's purchase is exempt from Lucent's collection of such tax and a
     valid tax exemption certificate is furnished by Customer to Lucent.

          (iv) All prices mentioned in this Agreement are exclusive of value
     added taxes, turnover taxes, sales taxes or similar taxes, including any
     related interest and penalties (hereinafter all referred to as "VAT"). In
     the event that any VAT is payable on the Products and/or services supplied
     by Lucent to Customer under this Agreement, this VAT shall be added to the
     prices mentioned and shall be for the account of Customer. If VAT on the
     supplies of Lucent is payable by Customer under a reverse charge procedure
     (i.e., shifting of liability, accounting or payment requirement to
     recipient of supplies), Customer shall ensure that Lucent will not
     effectively be held liable for this VAT by the relevant taxing authorities
     or other parties. Where applicable, Lucent shall use its reasonable
     commercial efforts to ensure that its invoices to Customer are issued in
     such a way that these invoices meet the requirements for deduction of input
     VAT by Customer, if Customer is permitted by law to do so.

12.  TERMS OF PAYMENT

     (a) Invoices for Products will be sent upon shipment or as soon thereafter
as practicable and shall be paid by Customer net thirty (30) days from the date
of the invoice. Lucent may make partial shipments of Orders, unless the Customer
specifically states in its Order that the Order shall be shipped complete. Such
partial shipments shall be separately invoiced and shall be paid by Customer net
thirty (30) days from the date of the invoice and not necessarily when the
remaining shipments occur.

     (b) Payment shall be made only for the Products and quantities specified in
the Order. Customer may deduct from the amount indicated on the invoice all
Products delivered which were not specified. Customer shall notify Lucent in
writing and, following acknowledgment by Lucent, these Products shall be
returned by Customer to Lucent at Lucent's expense. The expenses borne by Lucent
shall include without limitation, custom duties, taxes, levies, insurance and
freight.

     (c) Customer will advise Lucent of any billing discrepancies or disputes
about an invoice within ten (10) days of receiving it. Overdue payments, except
those that Customer has disputed in good faith, shall be subject to a late
payment charge of one and one-half percent (1 -1/2%) per month of the overdue
amount (but not to exceed the maximum lawful rate). Customer will reimburse
Lucent for reasonable attorneys' fees and other costs associated with collecting
delinquent payments.

                                       12
<PAGE>   14
13.  TITLE, RISK OF LOSS, DELIVERY

     (a) Title and risk of loss to Products shall pass to Customer upon delivery
to the Customer. Title to all Software (whether or not part of Firmware)
furnished by Lucent, if any, and all copies thereof made by Customer, including
translations, compilations, and partial copies are, and shall remain, the
property of Lucent. Where Customer is located outside the United States, title
and risk of loss shall pass no earlier than when the products have entered
international commerce outside the United States. Customer shall notify Lucent
promptly of any claim with respect to loss which occurs while Lucent has the
risk of loss and shall cooperate in every reasonable way to facilitate the
settlement of any claim. For purposes of this section, "delivery" shall mean the
point at which Lucent or Lucent's supplier or agent turns over possession of the
Product to Customer, Customer's employee, Customer's designated carrier,
Customer's warehouse, or other Customer's agent and not necessarily the final
destination shown on the Order. Nothing herein shall, during the period a party
has the risk of loss or damage to an item, relieve the other party of
responsibility for loss or damage to the item resulting from the acts or
omissions of such other party, its employees or agents.

     (b) Acceptance of Products that are generally available from Lucent will be
deemed to occur on receipt. Customer reserves the right to reject any delivery
if the Product delivered does not conform to the Order. To be effective,
Customer's rejection (or revocation of acceptance) of a non-conforming shipment
must be made by written notice within ten (10) days after delivery. Thereafter,
Customer shall have recourse to the appropriate warranty as its exclusive remedy
for non-conformity. Products in a rejected shipment shall be returned to Lucent
in original or equivalent packaging in accordance with Lucent's previously
supplied written instructions together with a written statement of the reason
for such rejection.

14.  WARRANTIES AND WARRANTY EXCLUSIONS

     (a) Lucent makes the following warranties to Customer:

          (i) Lucent warrants to Customer that it will repair or replace
     Products which, at the time of shipment and under proper and normal use (as
     unmodified), contain defects in material or workmanship or fail to conform
     to Lucent's applicable Product descriptions, if any, and such failure
     appears in any Product within twelve (12) months of the date title to
     Product is transferred to Customer (the "Warranty Period"). Lucent will, at
     its option, either repair or replace the defective Product without charge
     at Lucent's manufacturing or repair facility or at Customer's facility, or
     will refund the purchase price of the defective Products, provided: (1)
     that Customer notifies Lucent of the purported failure to conform to this
     warranty within the Warranty Period, and (2) that Lucent's examination of
     the Product discloses that the purported failure to conform to this
     warranty is present. Customer shall follow Lucent's instructions regarding
     return of Products to the place in the United States designated by Lucent,
     and no Products will be accepted for repair, replacement or refund absent
     Customer's following such instructions. In the case of any such return,
     Customer shall bear the risk of loss or damage and shall prepay all
     transportation charges to Lucent. Repaired or replacement Products shall be
     shipped to a continental U.S. destination by

                                       13
<PAGE>   15
     Lucent at its expense and risk of loss or damage. Customer shall be
     responsible for any custom duties, local taxes and expenses related to the
     importation of repair or replacement Products and any requested premium
     transportation. Replaced parts and Products shall become Lucent's property.
     Lucent shall not be responsible under this warranty for deinstallation or
     reinstallation or for related expenses arising out of the alteration of
     Customer's or a third party's premises or building, or removal, replacement
     or relocation of other items not purchased hereunder. If Lucent determines
     that any returned Product is not defective, Customer shall pay Lucent all
     costs of handling, inspection, repairs and transportation at Lucent's then
     prevailing rates.

         (ii) Repair and replacement parts and Products provided under the above
     warranty are warranted as set forth above, but only for sixty (60) days
     from the date of repair or replacement, or, for the remainder of the
     Warranty Period, whichever is greater. If in lieu of repair of the returned
     Product, Lucent replaces such Product, then the replacement Product shall
     be new Product.

          (iii) All rights exercised under this warranty shall be exercised only
     by Customer.

     (b) The foregoing warranty does not extend to the functioning of Lucent's
Products, as integrated, or assembled by Customer with other equipment, unless
such integration or assembly was approved in writing by Lucent; to expendable
items; to experimental or developmental products; to other products, procured
from other sources, which were integrated or assembled by Customer with Lucent's
products; or to products which have been subject to misuse, neglect, accident or
abuse; have been improperly wired, repaired or altered by anyone other than
Lucent; have been improperly installed, stored or maintained by anyone other
than Lucent; have been used in material violation of Lucent's instructions; or
have had their serial numbers or month and year of manufacture or shipment
removed, defaced or altered. Lucent makes no warranty, express or implied, to
any customer of Customer regarding Customer's total system, and Customer shall
make no representation to the contrary to a customer.

THE FOREGOING WARRANTY IS IN LIEU OF AND EXCLUDES ALL OTHER EXPRESS AND IMPLIED
WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. CUSTOMER'S SOLE AND EXCLUSIVE REMEDY FOR ANY
BREACH OF THIS WARRANTY, WHETHER IN CONTRACT, TORT, STRICT LIABILITY OR
OTHERWISE, SHALL BE LUCENT'S OBLIGATION TO REPAIR, REPLACE OR REFUND AS SET
FORTH ABOVE.

15.  INDEMNITY

     Lucent will indemnify and save harmless Customer from any loss or damages
(including reasonable attorneys' fees) awarded against Customer by final
judgment (or by settlement approved by Lucent) because of claims, suits, or
demands of third parties for personal injury or tangible property damage (as
limited below) to the extent such loss or damage is caused by or results solely
from the negligent acts of Lucent or its employees or agents provided 1)
Customer promptly notifies Lucent in writing of any suits, claims or demands
against Customer for which

                                       14
<PAGE>   16
Lucent is responsible under this indemnity, 2) Customer gives Lucent full
opportunity and authority to assume the sole defense of and settle such suits
and 3) Customer furnishes to Lucent upon request all information and assistance
available to Customer for defense against any such suit, claim or demand.
Lucent's liability under this indemnity, however, shall in no event exceed the
greater of $100,000 or the value of the specific Product giving rise to the
claim for any one occurrence. This indemnity is in lieu of all other obligations
of Lucent, express or implied, in law or inequity, to indemnify Customer (except
pursuant to Section 16, "Infringement").

16.  INFRINGEMENT

     In the event of any claim, action, proceeding or suit by a third party
against Customer alleging an infringement of any patent, copyright, or
trademark, or a violation of any trade secret or proprietary rights by reason of
the use of any Product furnished by Lucent to Customer under this Agreement,
Lucent, at its expense, will defend Customer, subject to the conditions and
exceptions stated below. Lucent will reimburse Customer for any cost, expense or
attorneys' fees, incurred at Lucent's written request or authorization, and will
indemnify Customer against any liability assessed against Customer by final
judgment on account of such infringement or violation arising out of such use.

     If Customer's use shall be enjoined or in Lucent's opinion is likely to be
enjoined, Lucent will, at its expense and at its option, either (1) replace the
enjoined Product furnished pursuant to this Agreement with a suitable substitute
free of any infringement; (2) modify it so that it will be free of the
infringement; or (3) procure for Customer a license or other right to use it. If
none of the foregoing options are practical, Lucent will remove the enjoined
Product and refund to Customer any amounts paid to Lucent therefor less a
reasonable charge for any actual period of use by Customer.

     Customer shall give Lucent prompt written notice of all such claims,
actions, proceedings or suits alleging infringement or violation and Lucent
shall have full and complete authority to assume the sole defense thereof,
including appeals, and to settle same. Customer shall, upon Lucent's request and
at Lucent's expense, furnish all information and assistance available to
Customer and cooperate in every reasonable way to facilitate the defense and/or
settlement of any such claim, action, proceeding or suit.

     No undertaking of Lucent under this clause shall extend to any such alleged
infringement or violation to the extent that it: (1) arises from adherence to
design modifications, specifications, drawings, or written instructions which
Lucent is directed by Customer to follow, but only if such alleged infringement
or violation does not reside in corresponding commercial Product of Lucent's
design or selection; or (2) arises from adherence to instructions to apply
Customer's trademark, trade name or other company identification; or (3) resides
in a product which is not of Lucent's origin and which are furnished by Customer
to Lucent for use under this Agreement; or (4) relates to uses of Product
provided by Lucent in combinations with other material, furnished either by
Lucent or others, which combination was not installed, recommended or otherwise
approved by Lucent. In the foregoing cases numbered (1) through (4), Customer
will

                                       15
<PAGE>   17
defend and save Lucent harmless, subject to the same terms and conditions and
exceptions stated above, with respect to Lucent's rights and obligations under
this clause.

     The liability of Lucent and Customer with respect to any and all claims,
actions, proceedings or suits by third parties alleging infringement of patents,
trademarks or copyrights or violation of trade secrets or proprietary rights
because of, or in connection with, any Products furnished pursuant to this
Agreement shall be limited to the specific undertakings contained in this
clause.

17.  TRADEMARKS AND OTHER INDICIA

     (a) Products delivered hereunder will be marketed by Customer under trade
names and trade dress of Customer or Customer's distributors unless Customer and
Lucent execute a separate trademark license agreement. Customer will provide
Lucent with written instructions and will bear all costs associated with
applying Customer's trade name and trade dress to Products. Products delivered
hereunder may also bear certain trade names, trademarks, trade devices, logos,
codes or other symbols of Lucent (hereinafter "Marks"). Lucent hereby grants
Customer permission to market Products bearing such Marks in accordance with the
terms of this Agreement. If Lucent grants Customer permission to use its Marks
in Customer's marketing and advertising of, and in Customer's publicity relating
to, Products and licensed materials, such use shall conform to Lucent's written
standards and guidelines relating thereto, which may be revised by Lucent from
time to time. Such use shall inure to the benefit of Lucent and shall not invest
in Customer any rights in or to the Marks. All uses of Marks by Customer shall
be subject to pre-publication or pre-use review and approval by Lucent. If, in
Lucent's judgment, any use of Marks by Customer is deemed detrimental to the
Marks or Lucent's reputation, or is deemed otherwise undesirable, Lucent may
withdraw such permission without liability as a result thereof.

     (b) Customer shall not conduct business under any of the Marks or
derivatives or variations thereof, and Customer shall not directly or indirectly
hold itself out as having any relation to Lucent or its Affiliates other than as
set forth herein. Marks may not be used to identify the Customer.

     (c) Advertising by Customer that shows and identifies product, brands,
software (including related documentation), services or other items not covered
by this Agreement may not use Marks without Lucent's prior written consent.
Customer will not alter or remove any Marks applied to Products or licensed
materials without the written approval of Lucent.

     (d) All references to Customer in this Section 17 shall also be intended to
include OEM Customers. In its agreements with its OEM Customers, Customer shall
use commercially reasonable efforts to require said customers to comply with the
provisions of this Section.

18.  EXCLUSIVE REMEDIES; LIMITATION OF LIABILITY

     (a) For purposes of the exclusive remedies and limitations of liability set
forth in this Section, each party shall be deemed to include its respective
subsidiaries and Affiliates and the

                                       16
<PAGE>   18
directors, officers, employees, agents, representatives, subcontractors and
suppliers of each of them; and "damages" shall be deemed to refer collectively
to all injury, damage, loss or expense incurred.

     (b) Lucent's entire liability to Customer and Customer's exclusive remedy
against Lucent for any damages caused by any Product defect or failure, or
arising from the performance or non-performance of any work, regardless of the
form of action, whether in contract, tort including negligence, strict liability
or otherwise shall be as follows:

          (i) for infringement, the remedies set forth in the Section 16,
     Infringement;

          (ii) for the non-performance of Product or work performed during the
     warranty period, the remedies stated in the Section 14, entitled Warranties
     and Warranty Exclusions;

          (iii) for tangible property damage or bodily injury or death to any
     person proximately caused by Lucent's negligence, the amount of proven
     direct damages; and

          (iv) for any claims not set forth above, Lucent's liability shall be
     limited to direct damages that are proven, in an amount not to exceed the
     greater of $100,000 or the value of the specific Product giving rise to the
     claim.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY SHALL BE
LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO LOST PROFITS, SAVINGS OR REVENUES OF ANY KIND,
WHETHER OR NOT ANY SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. THIS PROVISION SHALL SURVIVE FAILURE OF AN EXCLUSIVE REMEDY.

19.  INDEMNIFICATION BY CUSTOMER

     Customer will indemnify and save harmless Lucent from any loss or damages
(including reasonable attorneys' fees) awarded against Lucent by final judgment
(or by settlement approved by Customer) because of claims, suits, or demands of
third parties for personal injury or tangible property damage (as limited below)
to the extent such loss or damage is caused by or results solely from the
negligent acts of Customer or its employees or agents provided 1) Lucent
promptly notifies Customer in writing of any suits, claims or demands against
Lucent for which Customer is responsible under this indemnity, 2) Lucent gives
Customer full opportunity and authority to assume the sole defense of and settle
such suits and 3) Lucent furnishes to Customer upon request all information and
assistance available to Lucent for defense against any such suit, claim or
demand. Customer's liability under this indemnity, however, shall in no event
exceed the greater of $100,000 or the value of the specific Product giving rise
to the claim for any one occurrence. This indemnity is in lieu of all other
obligations of Customer, express or implied, in law or inequity, to indemnify
Lucent (except pursuant to Section 16, "Infringement").

                                       17
<PAGE>   19
20.  USE OF CONFIDENTIAL INFORMATION

     (a) All Confidential Information shall belong to the party disclosing it.
The disclosing party grants the receiving party the right to use Confidential
Information only for purposes expressly permitted in this Section. Lucent shall
use Customer's Confidential Information only to perform Lucent's obligations
under this Agreement. Customer shall use Lucent's Confidential Information only
to order, evaluate, use, install, and maintain the Products furnished hereunder.

     (b) The receiving party

          (i) shall not reproduce or copy the disclosing party's Confidential
     Information, in whole or in part, except as authorized in this Agreement or
     in writing by the disclosing party;

          (ii) shall return or destroy the Confidential Information (including
     any full and partial copies) when no longer needed or when requested to do
     so by the disclosing party;

          (iii) shall hold the Confidential Information in confidence;

          (iv) shall disclose Confidential Information only to those employees
     and independent contractors who have a need to know and use the
     Confidential Information for the permitted purposes, provided that the
     independent contractors have agreed in writing to maintain the
     confidentiality of the information and are not employees of any competitor
     of the disclosing party with respect to the Products sold hereunder. The
     receiving party shall provide the disclosing party, at its request, with a
     copy of such writing.

     (c) The foregoing restrictions and obligations shall not apply to
information that the receiving party can demonstrate: (a) was independently
developed by or for the receiving party without reference to the disclosing
party's Confidential Information; (b) has become publicly known through acts not
attributable to the receiving party; (c) was in the receiving party's possession
or was known by the receiving party at the time of disclosure; or (d) was
received without restriction from another party.

21.  CONFIDENTIALITY OF AGREEMENT

     Each party shall keep confidential all provisions of this Agreement and any
Order except as reasonably necessary for a party to perform and except as
required by applicable laws or regulations. In the latter case, the party
required to disclose this Agreement or any Order shall promptly inform the other
party prior to disclosure and shall make all reasonable efforts to obtain a
protective order or other confidential treatment and to limit disclosure only to
those portions necessary to comply with the applicable law or regulation.

22.  PUBLICITY

                                       18
<PAGE>   20
     Except as provided in Section 17, neither party shall release or publish
news releases, announcements, advertising or other publicity relating to the
Products under this Agreement or mentioning or implying the name, trademarks,
logos, service marks or other identification of the other party or its
Affiliates or their respective personnel without the prior review and written
consent of the other party.

23.  ASSIGNMENT

     Except as provided in this section, neither party shall assign this
Agreement or any right or interest under this Agreement, nor delegate any work
or obligation to be performed under this Agreement, (an "assignment") without
the other party's prior written consent. Any attempted assignment in
contravention of this provision shall be void and ineffective. Nothing shall
preclude a party from employing a subcontractor in carrying out its obligations
under this Agreement. A party's use of such subcontractor shall not release the
party from its obligations under this Agreement. Notwithstanding the foregoing,
either party has the right to assign this Agreement and to assign its rights and
delegate its duties under this Agreement, in whole or in part, at any time and
without the other party's consent, to any present or future subsidiary or
Affiliate of the assigning party, to any entity that is the successor to the
business of any such party that relates to this Agreement, or to any combination
of the foregoing. Such assignment or delegation shall release the assigning
party from any further obligation or liability thereon. The assigning party
shall give the other party prompt written notice of the assignment. For the
purposes of this section, the term "Agreement" includes this Agreement, any
subordinate agreement placed under this Agreement and any Order placed under
this Agreement or subordinate agreement.

24.  AUTHORIZED THIRD PARTY PURCHASERS

     The parties understand and agree that Lucent will at all times during the
life of this Agreement remain an independent seller. In no event shall Customer
have any responsibility for any business transactions between Lucent and any
independent third party purchasing Products from Lucent. Customer, however, may
provide written authorization for certain third parties to purchase Products
from Lucent under the pricing terms of this Agreement provided such sales are
for use or benefit of Customer. Lucent agrees to (a) honor such authorizations
upon written notice from Customer, and sell the Products to such Authorized
Third Parties; (b) only accept purchase Orders from Authorized Third Parties
that reference the Customer part number and are issued solely in the performance
of contracted work for Customer; and (c) notify Customer immediately if an
Authorized Third Party fails to meet the conditions in (b). For purposes of this
Agreement, a third party is an "Authorized Third Party" hereunder only if Lucent
is able, after using reasonable commercial efforts and its reasonable business
judgment, to enter into a supplier-customer relationship with such third party.
If such third party and Lucent have an existing supplier-customer relationship,
the third party is an "Authorized Third Party" hereunder only if Lucent is able,
after using reasonable commercial efforts and its reasonable business judgment,
to enter into arrangements acceptable to Lucent with such third party to address
transactions as an Authorized Third Party. Lucent reserves the right to
terminate the supplier-

                                       19
<PAGE>   21
customer relationship of any independent third party for any reasonable business
purpose or reason.

25.  TERMINATION

     If either party is in material breach of any term of this Agreement and
such breach continues for thirty (30) days (or for ten (10) days in case of
obligations under Section 20, "Use of Confidential Information") after receiving
notice from the other party, then the non-breaching party may terminate this
Agreement without any further obligation or liability except for Products
already shipped. The non-breaching party shall cooperate fully with the other
party to facilitate a remedy of a material breach within the applicable cure
period. The Parties' rights and obligations which by their nature would continue
beyond the termination or expiration of this Agreement shall survive such
termination or expiration.

26.  FORCE MAJEURE

     Lucent shall not be held responsible for any delay or failure in
performance of any part of this Agreement to the extent such delay or failure is
caused by fire, flood, explosion, war, strike, embargo, government requirement,
civil or military authority, act of God, nature or the public enemy, failure of
any supplier or subcontractor of Lucent to deliver on schedule materials,
equipment or machinery, inability to secure raw materials or transportation
facilities, inadequate yield of Products despite Lucent's reasonable efforts,
act or omission of carriers or any other causes beyond its reasonable control.
Lucent may, in the event of any such circumstance, allocate output among
Customer and its other customers, whether or not covered under contract, in a
fair and reasonable manner, taking into account Lucent's contractual
commitments, its available production and such other factors as Lucent deems
appropriate.

27.  EMERGENCY SERVICE

     The Parties agree that the following provisions shall apply solely to the
Specialty Fiber Product identified in Schedules 3.1 and 3.2 and any custom
Product added to Schedule 3.3 and only during such time as Lucent is sole
provider of Product in accordance with Section 6(a)(iii).

     (a) Lucent will furnish a written plan of action ("Emergency Backup Plan")
to Customer on or before February 1, 2001 that covers Lucent's plans on how it
will continue to perform its obligations under this Agreement in case of an
unforeseen catastrophe, including a Force Majeure condition, or any other
condition in which Lucent will be unable to produce and ship Product to meet
Customer's Orders as accepted by Lucent for eight (8) consecutive weeks. The
Emergency Backup Plan will identify Lucent's secondary manufacturing location(s)
and include the estimated time for the implementation of such Emergency Backup
Plan and production of Product.

     (b) In the event the Emergency Backup Plan fails of its essential purpose,
the Customer may at its option, terminate this Agreement, or any Order (with
respect to the Product identified in

                                       20
<PAGE>   22
the Order and affected by such delay or failure) in accordance with the Force
Majeure, and/or exercise any other rights and remedies it may have, at law or at
equity.

     (c) In the event Lucent has failed to perform its obligations in accordance
with its delivery commitment and the Force Majeure provision of this Agreement,
and Lucent has not cured any such default in accordance with the intervals
specified in the Emergency Backup Plan, Customer may at its option require
Lucent to grant to Customer a non-exclusive, worldwide, revocable license for
Customer to manufacture the applicable Products; use shall be limited to the
manufacture of such Products. Lucent shall, under such circumstances and at such
time, furnish to Customer without cost all necessary assistance as will permit
Customer to commence manufacture of the Products, which may include
documentation or know-how along with a reasonable amount of Lucent's technical
assistance. Such license shall remain in effect for the balance of this
Agreement or until the conditions that caused Lucent to fail in its obligations
be cured, whichever shall occur earlier. When such conditions are cured, then
Customer shall resume purchasing Product from Lucent in accordance with the
terms of this Agreement. In case a third party supplier must manufacture Product
due to Lucent's inability to manufacture or Lucent's continued default, Lucent
shall fully cooperate with Customer and such third party supplier to ensure a
smooth transition of production with minimal interruption of business with
Customer, provided, however, that such third party agrees in writing to maintain
the confidentiality of all information provided to it hereunder.

28.  CUSTOMS DUTY DRAWBACK

Customer reserves the right to claim United States customs duty drawback on all
sales made to Lucent under this Agreement. Lucent shall cooperate with Customer
in this regard in all reasonable ways, including without limitation, providing
proof of exportation, advance notice of exportation, certificates, endorsements,
or any other documentation or proof as may be necessary for Customer, or its
Affiliates, to receive payment of the drawback claims(s) and, if required by the
United States Customs Service, by making the Products available for examination
by the United States Customs Service.

29.  NOTICES

     All notices or other communications under this Agreement shall be in
writing and shall be deemed to be duly given when (a) delivered in person, (b)
deposited in the United States mail or private express mail, postage prepaid,
(c) by guaranteed overnight delivery, (d) by courier, or (e) by confirmed
telecopy addressed to the respective party as follows addressed as follows:

     If to Lucent, to:

     Lucent Technologies Inc.
     600 Mountain Avenue
     Murray Hill, New Jersey 07974
     Attn: Chief Supply Officer

                                       21
<PAGE>   23
     with a copy to:

     Lucent Technologies Inc.
     600 Mountain Avenue
     Murray Hill, New Jersey 07974
     Attn: General Counsel

     If to Customer to:

     Agere Systems Inc.
     555 Union Blvd.
     Allentown, PA 18103
     Attn: Procurement Director

     with a copy to:

     Agere Systems Inc.
     555 Union Blvd.
     Allentown, PA 18103
     Attn: General Counsel

     Any party may, by notice to the other party, change the address to which
such notices are to be given.

30.  SEVERABILITY

     If any provision of this Agreement or the application thereof to any Person
or circumstance is determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remaining provisions hereof, or the
application of such provision to Persons or circumstances or in jurisdictions
other than those as to which it has been held invalid or unenforceable, shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby or thereby, as the case may be, is not affected
in any manner adverse to any party. Upon such determination, the parties shall
negotiate in good faith in an effort to agree upon such a suitable and equitable
provision to effect the original intent of the parties.

31.  CHOICE OF LAW

     The Parties are familiar with New York commercial law, have been guided by
New York commercial law in their negotiation of this matter, conduct substantial
business in New York and desire to avoid uncertainty and disputes concerning the
law that will govern the agreement between the Parties. Accordingly, the Parties
expressly intend and agree that the construction interpretation and performance
of this Agreement and all transactions under it shall be governed by the laws of
the State of New York, excluding its choice of law rules and excluding the
United Nations Convention on Contracts for the International Sale of Goods.

                                       22
<PAGE>   24
32.  HEADINGS

     The article, section and paragraph headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

33.  WAIVERS OF DEFAULT

     Waiver by any party of any default by the other party of any provision of
this Agreement shall not be deemed a waiver by the waiving party of any
subsequent or other default, nor shall it prejudice the rights of the other
party.

34.  SPECIFIC PERFORMANCE

     In the event of any actual or threatened default in, or breach of, any of
the terms, conditions and provisions of this Agreement, the party or parties who
are or are to be thereby aggrieved shall have the right to specific performance
and injunctive or other equitable relief of its rights under this Agreement, in
addition to any and all other rights and remedies at law or in equity, and all
such rights and remedies shall be cumulative.

35.  AMENDMENTS

     No provision of this Agreement shall be deemed waived, amended,
supplemented or modified by any party, unless such waiver, amendment, supplement
or modification is in writing and signed by the authorized representative of the
party against whom it is sought to enforce such waiver, amendment, supplement or
modification.

36.  INTERPRETATION

     Words in the singular shall be held to include the plural and vice versa
and words of one gender shall be held to include the other genders as the
context requires. The terms "hereof, " "herein, " and "herewith" and words of
similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole (including all of the schedules, exhibits and appendices
hereto) and not to any particular provision of this Agreement. Article, section,
exhibit, schedule and appendix references are to the articles, sections,
exhibits, schedules and appendices to this Agreement unless otherwise specified.
The word "including" and words of similar import when used in this Agreement
shall mean "including, without limitation," unless the context otherwise
requires or unless otherwise specified. The word "or" shall not be exclusive.
References to "Schedule" shall include all sub-schedules thereto, but reference
to a sub-schedule (e.g. Schedule 3.1) shall refer solely to the specific
identified sub-schedule. Unless expressly stated to the contrary in this
Agreement, all references to "the date hereof," "the date of this Agreement,"
"hereby" and "hereupon" and words of similar import shall all be references to
the Effective Date, regardless of any amendment or restatement hereof.

                                       23
<PAGE>   25
37.  MEDIATION, DISPUTE RESOLUTION

     (a) The provisions set forth in this Section 37 shall apply to all
disputes, controversies or claims (whether arising in contract, tort or
otherwise) that may arise out of or relate to, or arise under or in connection
with this Agreement, or the transactions contemplated hereby (including all
actions taken in furtherance of the transactions contemplated hereby), or the
commercial or economic relationship of the parties relating hereto.

     (b) It is the intent of the parties to use their respective reasonable best
efforts to resolve expeditiously and on a mutually acceptable negotiated basis
any dispute, controversy or claim between them with respect to the matters
covered hereby that may arise from time to time. In furtherance of the
foregoing, any party involved in a dispute, controversy or claim may deliver a
notice (an "Escalation Notice") demanding an in-person meeting involving
representatives of the parties at a senior level of management of the parties
(or if the parties agree, of the appropriate strategic business unit or division
within such entity). A copy of any such Escalation Notice shall be given to the
General Counsel, or like officer or official, of each party involved in the
dispute, controversy or claim (which copy shall state that it is an Escalation
Notice pursuant to this Agreement). Any agenda, location or procedures for such
discussions or negotiations between the parties may be established by the
parties from time to time; provided, however, that the parties shall use
commercially reasonable efforts to meet within thirty (30) days of the
Escalation Notice.

     (c) If the parties are not able to resolve the dispute, controversy or
claim through the escalation process referred to above, then the matter shall be
referred to mediation. The parties shall retain a mediator to aid in their
discussions and negotiations by informally providing advice to the parties. Any
opinion expressed by the mediator shall be strictly advisory and shall not be
binding on the parties, nor shall any opinion expressed by the mediator be
admissible in any other proceeding. The mediator may be chosen from a list of
mediators previously selected by the parties or by other agreement of the
parties. Costs of the mediation shall be borne equally by the parties involved
in the matter, except that each party shall be responsible for its own expenses.
Mediation shall be a prerequisite to the commencement of any action by either
party.

     (d) In the event that any party, after complying with the provisions set
forth in the preceding two paragraphs, desires to commence an action, such party
may submit the dispute, controversy or claim (or series of related disputes,
controversies or claims) giving rise thereto to a court of competent
jurisdiction.

     (e) Unless otherwise agreed in writing, the parties will continue to
provide service and honor all other commitments under this Agreement during the
course of dispute resolution pursuant to the provisions of this Section with
respect to all matters not subject to such dispute, controversy or claim.

                                       24
<PAGE>   26
38.  COUNTERPARTS; ENTIRE AGREEMENT; CORPORATE POWER

     (a) This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement.

     (b) This Agreement and any exhibits, schedules and appendices hereto
contain the entire agreement between the parties with respect to the subject
matter hereof, supersede all previous agreements, negotiations, discussions,
writings, understandings, commitments and conversations with respect to such
subject matter and there are no agreements or understandings between the parties
other than those set forth or referred to herein.

     (c) Each party represents as follows:

         (i) each has the requisite corporate or other power and authority and
     has taken all corporate or other action necessary in order to execute,
     deliver and perform this Agreement and to consummate the transactions
     contemplated hereby; and

         (ii) this Agreement has been duly executed and delivered by it and
     constitutes a valid and binding agreement enforceable in accordance with
     the terms thereof.

                                       25
<PAGE>   27
IN WITNESS WHEREOF, the parties have caused this FIBER PRODUCT PURCHASE
AGREEMENT to be executed by their duly authorized representatives as of the
Effective Date.

                                        LUCENT TECHNOLOGIES INC.
                                        By: /s/ ROBERT C. HOLDER
                                            ___________________________
                                        Name: Robert C. Holder
                                        Title: Executive Vice President

                                        AGERE SYSTEMS INC.
                                        By: /s/ JOHN T. DICKSON
                                            ___________________________
                                        Name: John T. Dickson
                                        Title: President and Chief
                                               Executive Officer

                                       26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00020-of-00352.parquet"}]]