Document:

<PAGE>

                                                                   EXHIBIT 10.65

     [*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

                   STRATEGIC ALLIANCE, PURCHASE AND LICENSE

                                   AGREEMENT

                                    between

                            UTStarcom Incorporated
                                   (COMPANY)

                                      and

                       TELECOMMUNICATIONS D'HAITI S.A.M.
                                   (TELECO)
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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

<TABLE>
<CAPTION>
                               Table of Contents
                                                                            Page
                                                                            ----
<S> <C>                                                                   <C>
1.   Definitions.............................................................  1
     1.1   "Functional Verification".........................................  1
     1.2   "Commercial Service"..............................................  1
     1.3   "Effective Date"..................................................  1
     1.4   "Product".........................................................  1
     1.5   "Services"........................................................  1
     1.6   "Documentation"...................................................  1
     1.7   "Software"........................................................  2
     1.8   "Software License Agreement"......................................  2
     1.9   "Non-Disclosure Agreement"........................................  2
     1.10  "Warranty Period".................................................  2
     1.11  "Business Plan"...................................................  2
     1.12  "Training"........................................................  2
     1.13  "Final Acceptance Certificate"....................................  2
2.   Term....................................................................  2
3.   Project Scope...........................................................  2
4.   Project Business Plan and Schedule......................................  3
5.   Purchase Orders.........................................................  4
     5.1   Order Submission..................................................  4
6.   Price, Financing and Payment Terms......................................  4
     6.1   Pricing and Shipment..............................................  4
     6.2   Taxes, Duties and Levies..........................................  4
     6.3   Financing and Form of Payment.....................................  4
7.   Advance Payment Guarantee...............................................  5
8.   Liquidated Damages......................................................  6
9.   Installation and Acceptance.............................................  6
     9.1   Site Availability.................................................  6
     9.2   Installation......................................................  6
     9.3   Equipment Acceptance..............................................  8
10.  Obligations and Rights of Parties.......................................  8
11.  Project Coordination Committee and Executive Board...................... 11
12.  Functional Verification................................................. 11
13.  Licenses................................................................ 11
14.  Title and Risk.......................................................... 12
15.  Warranty................................................................ 12
</TABLE>

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

<TABLE>
<CAPTION>
                               Table of Contents
                                  (continued)
                                                                            Page
                                                                            ----
<S> <C>                                                                   <C>
     15.1  Limited Warranty.................................................. 12
     15.2  Disclaimer of Warranties.......................................... 13
     15.3  Inherently Dangerous Applications................................. 13
     15.4  Product Returns................................................... 13
16.  Indemnification......................................................... 13
     16.1  Indemnity......................................................... 13
     16.2  Limitations....................................................... 14
     16.3  Disclaimer........................................................ 14
17.  Limitation of Liability................................................. 14
18.  Termination............................................................. 14
19.  Training................................................................ 15
20.  Governing Law and Regulations........................................... 15
21.  General Provisions...................................................... 15
     21.1  No Liability for Other Party's Acts............................... 15
     21.2  Independent Contractors........................................... 15
     21.3  Notices........................................................... 15
     21.4  Security Interest................................................. 16
     21.5  No Assignment..................................................... 16
     21.6  Jurisdiction...................................................... 16
     21.7  Publicity......................................................... 16
     21.8  No Violation of Applicable Law.................................... 16
     21.9  Conflicting Exhibits.............................................. 16
     21.10 No Waiver......................................................... 17
     21.11 Arbitration....................................................... 17
     21.12 Non-Monetary Remedies............................................. 17
     21.13 Force Majeure..................................................... 17
     21.14 Entire Agreement.................................................. 17
     21.15 May Be Executed in Counterparts................................... 17
     21.16 Contract Validity................................................. 17

Exhibit A:  Section 7 Economic Proposal and Equipment Lists
Exhibit B:  End-User Software License
Exhibit C:  Mutual Non-Disclosure and Confidentiality Agreement
Exhibit D:  Business Plan and Project Commercial Milestones
Exhibit E:  Project Implementation Schedule
Exhibit F:  Training and Technology Transfer
Exhibit G:  Final Acceptance Certificate
</TABLE>

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

              STRATEGIC ALLIANCE, PURCHASE AND LICENSE AGREEMENT

     THIS STRATEGIC ALLIANCE, PURCHASE AND LICENSE AGREEMENT (the "Agreement")
is made by and between UTStarcom, Inc., a Delaware corporation, having offices
at 1275 Harbor Bay Parkway, Suite 100, Alameda, California 94502, United States
of America (hereinafter referred to as "Company"), duly represented by Mr. Omar
A. Graibe, Managing Director, Caribbean and Latin America of Company and
Telecommunications D'Haiti S.A.M., hereinafter referred to as TELECO or BUYER, a
company, with its principal place of business at Port Au Prince, Republic of
Haiti, duly represented by Monsieur Patrick A. Joseph, Directeur General of
TELECO, appointed by the President du Conseil d'Administrationon Gouverneur de
la Banque de la Republique d'Haiti on March 2001, and duly authorized by the
Government of Haiti to enter into and sign this contract.

     WHEREAS, BUYER desires to purchase and license, from time to time, certain
of Company's products and services; and

     WHEREAS, Company wishes to enter a strategic alliance, sell and license
such products and services to BUYER upon the terms and conditions set forth
herein.

     NOW, THEREFORE, the parties agree as follows:

     1.   Definitions.  For the purpose of this Agreement, the terms below
          -----------
shall have the following definitions:

          1.1  "Functional Verification".  "Functional Verification" means
completion of tests performed by Company in accordance with the Functional
Verification test procedure to be provided by Company and approved by the BUYER
prior to the commencement of the tests.

          1.2  "Commercial Service".  "Commercial Service" means the earliest
date when any of BUYER's subscribers or customers begins to use the Product.

          1.3  "Effective Date".  "Effective Date" means the earliest date by
which duly authorized officers of both parties have signed this Agreement.

          1.4  "Product".  "Product" means collectively all hardware and
software components and subsystems provided by Company as more fully described
in Exhibit A attached hereto.

          1.5  "Services".  "Services" means collectively labor delivered by
Company and/or its subcontractors for the purpose of training, installation,
repair or other
purposes.

          1.6  "Documentation".  "Documentation" means all user manuals,
training manuals, Software release notes, and other similar, written materials
to be provided in English during the

                                      -1-
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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

initial Project's phase and in French after the completion of the Projects first
phase, provided with the System, as may be updated by Company from time to time.

          1.7  "Software".  "Software" -- the executable (object code) version
of software as developed by and/or licensed to Company for use in the Product.

          1.8  "Software License Agreement".  "Software License Agreement" means
the Software License Agreement between the parties and attached hereto as
Exhibit B.

          1.9  "Non-Disclosure Agreement".  "Non-Disclosure Agreement" means the
Mutual Non-Disclosure and Confidentiality Agreement between the parties and
attached hereto as Exhibit C.

          1.10  "Warranty Period".  "Warranty Period" -- a period starting on
the date of Functional Verification as applicable per Limited Equipment Warranty
coverage described herein this Contract.

          1.11  "Business Plan".  "Business Plan" -- The Business Plan of the
Project details Project Implementation Schedule, financial parameters of the
Strategic Alliance, Purchase and License Agreement and the Financial Returns for
each party of this Strategic Alliance and attached hereto as Exhibit D.

          1.12  "Training".  Exhibit "F".

          1.13  "Final Acceptance Certificate".  Exhibit "G".

     2.  Term.  The term of this Agreement shall commence on the Effective Date
         ----
and unless otherwise terminated as provided herein, shall continue in full force
and effect.

     3.  Project Scope.  The purpose of this Contract is to rule and establish
         -------------
the conditions, rights, obligations, responsibilities and other related
stipulations under which both parties will jointly develop a Project for a
minimum of [*] wireless access lines that will allow TELECO to provide Access
Services to its residential and business customers throughout the Republic of
Haiti.

     (i) as a key pre-requisite to accomplish the investment and financial
commitments being made by the Company to execute the planned project as per the
parameters set forth in the Business Plan and TELECO's objectives for the
deployment of new telephone lines to provide telephone services in the
designated serving areas where pent-up demand exists, (ii) and derive the
necessary revenues from these that will make the expansion feasible.  The
Project shall be developed in accordance to the Business Plan included in
Exhibit D of this Agreement.

     To develop the Project both parties agreed that Company will engineer,
manufacture or supply, install, test and put into service telecommunication
equipment, and related services including but not limited to the sale of the
services to end users and the Software (as defined below) as described in
Exhibit A ("Equipment and Services") at Company prices listed in Exhibit A.  The

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

equipment could be installed wherever it is required and agreed by Company, as
per Company standards practices and recommendations, in the Buyer premises or
third party locations.  All charges and/or fees related to renting of space,
facilities, rights of ways, civil works, expansions to existing
telecommunications infrastructure needed to accommodate the equipment/solution
for this project, from third parties, as needed to install the contracted
equipment, will be charged to [*] and their cost properly adjusted in the
contract value as relevant data becomes available from the planned field
engineering surveys completion.

     [*] will purchase and pay for such equipment, services, land, facilities,
rights of ways, licenses, and other necessary project elements as agreed in this
Contract, its annexes or any amendments to them.

     Prices for installation and related charges are subject to change due to
[*].  [*] agrees to pay all such additional charges as invoiced by Company.

     During the execution of Contract both parties could agree on additional
extensions to the Contract Scope at the then prevailing prices.  Such extensions
could include additional equipment, services, new functionalities of the
equipment not included in this project and currently inherent to the offered
equipment or new features to be developed in the future by the Company.

     Buyer, as National Telecommunications Operator of Haiti, shall provide all
of its [*] to facilitate the Project Development.

     Company will provide [*] deployment as described and agreed to in this
Agreement, its Annexes and the Proposal, including Product and Services as
detailed in Exhibit A.

     The scope of contract may be extended by mutual agreement of the parties.
The terms and conditions of such extension(s) shall be made through amendments
to the original contract

     4.  Project Business Plan and Schedule.  Equipment will be deployed in
         ----------------------------------
phases, [*]. Deployment is as per scheduled as detailed in Exhibit E.

     This contract is based on the Business Plan presented in Exhibit D,
"Business Plan".  The Business Plan is a fundamental part of the Contract.  It
details the Project Commercial Milestones, the financial parameters that will
rule the Contract and it establishes the expected financial returns agreed and
projected by both parties.  One of the key purposes of this Contract and
Business Plan is to ensure the success of the project and its financial returns
on the investment in order to ensure the successful execution of the Project
both from an economic and financial standpoint.  This signifies that the revenue
streams generated from the initial phases of the project, shall provide the
funding needed to carry out the project subsequent phases to achieve the Project
Plan stated Goals.  In accordance with the aforementioned and to ensure the
actual compliance of the Business Plan in practice, every [*], TELECO and
Company will review the actual results yielded by Project against the Business
Plan goals and will agree on the necessary adjustments warranted to ensure that
Company obtains the payments for the goods and services contracted by TELECO
under the terms

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

of this Agreement and the financial returns or charges established in the
Business Plan as well as the benefits due to TELECO. If for any reason these
financial returns are not as projected in the Business Plan [*] will provide the
additional funding that guarantees the payment of product and services as well
as the financial product and charges due to Company.

     Prior to delivery, Company reserves the right to make substitutions,
modifications and improvements to the Equipment, provided that such
substitution, modification or improvement shall not materially affect
performance in the application originally agreed to with Customer.

     5.   Purchase Orders.
          ---------------

          5.1  Order Submission.  BUYER will purchase and/or license Products
               ----------------
according to the Scope of this Strategic Alliance Agreement by submitting, from
time to time as per Project Schedules and Phases indicated in Business Plan and
Project Schedule (Exhibits D and E), purchase orders by hard copy or facsimile.
Company will accept orders in compliance with the terms of this contract and
will inform BUYER in writing of expected shipment dates.

     All purchase orders submitted by BUYER shall be subject to the terms and
conditions of this Agreement.  No additional or different provisions appearing
anywhere on BUYER's purchase orders or other correspondence shall be binding on
Company.  Any such terms and will be deemed to be stricken.

     6.   Price, Financing and Payment Terms.
          ----------------------------------

          6.1  Pricing and Shipment.  Prices for the Product and Services
               --------------------
purchased and/or licensed hereunder shall be as described in Exhibit A to this
Agreement (the "Prices"). Prices for the Product are in [*]. Unless otherwise
specified by Company in writing, the Prices for the Products [*] any freight,
transportation, handling or Services, which are listed, separately as
applicable.

          6.2  Taxes, Duties and Levies.  The Prices and/or any payments or
               ------------------------
disbursements to Company from this Agreement [*] any customs duties, value added
tax, income tax or any other direct or indirect tax, charge, duty, levy or
assessment which may be levied or charged by any national, state, local or other
governmental authority, agency or instrumentality of the Republic of Haiti,
currently applicable or created in the future by any authority of the Republic
of Haiti. Any such amounts charged, levied or assessed, whether withheld at
source or otherwise, will be [*] to the prices otherwise chargeable to and
payable by [*] pursuant to this Agreement.

          6.3  Financing and Form of Payment.  Payment of goods, services and
               -----------------------------
other charges due to Company shall be made by TELECO as follows:

               1)  Down payment of [*] per cent of the Project Total Contract
Value of each individual phase of the [*] Access Lines project payable [*]
within [*] from Contract Signature.

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

               2)  Payment of Contract remaining balance due to Company shall be
paid by TELECO in [*] installments [*] as follows:

     These installments shall come from the total revenues collected from users
who subscribe to access lines provided by the Buyer with this project.  Both
parties agreed that total revenues would consist of the following:

                    [*]

     Total revenues have been estimated in the Business Plan based on
conservative figures below the actual applicable values.  The actual values
could be higher and will depend on the official tariffs approved and applicable
in Haiti by TELECO.  All revenues collected by TELECO shall be automatically
deposited when subscriber pays for their services in an escrow account at a
mutually agreeable international financial institution whose joint beneficiaries
shall be the Company and Buyer.  At the end of each [*], the Company and TELECO
will review the balance of the escrow account.  The Company shall be entitled to
collect the [*] installments owed to Company as per the mutually agreed project
implementation schedule.  The escrow account shall be kept with a minimum
balance equivalent to the amount of a [*] installment and the remaining funds in
the account shall be disbursed to TELECO.  If for any reason, the funds
deposited in the escrow account are not sufficient to cover the [*] contract
installment, TELECO shall pay from its own funding the difference owed to the
Company within a period of [*] from payment due date.

     As a guarantee to Company efforts and investment, Buyer shall provide
Company an acceptable Guarantee acceptable to Company, such as any of the
following:  i) an [*] L/C for an amount [*] in a first rated international
financial institution acceptable to Company, ii) IOU's with the collateral of
[*], iii) any other form of guarantee acceptable to Company.  The amount of the
herewith indicated guarantee shall be equivalent to two quarterly installments
of the project value in favor of Company.  This guarantee shall allow partial
disbursements that could be exercised by Company if Buyer delays the payment of
any outstanding balance for more than [*].  If disbursements are applied to
Guarantee, Buyer shall reinstate the original value of L/C and/or guarantee
within [*] of notification from Company.  Failure to reinstate the value of this
guarantee will become a breach of contract; in such case Company could exercise
the L/C and/or Guarantee and collect by any means the balance due from the
entire contract.  This guarantee shall cover the total contract value and shall
be valid during the contract term.  In addition, Government of Haiti Guarantee
should be issued by Banc Nationale D'Haiti, majority owner of TELECO, in favor
of Company to serve as guarantee to the contracted project.

     All payments are non-refundable.

     7.   Advance Payment Guarantee.  Company shall provide for the benefit of
          -------------------------
BUYER an advance payment guarantee issued first-rated international bank, in the
amount of the Initial Payment as set forth in Article 6.3 (the "Guarantee"). The
Guarantee shall become effective upon Company's receipt of the Initial Payment
due from BUYER under the terms of Section 6, and shall expire upon shipment of
the Product, unless extended by mutual written agreement of the parties.

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     8.   Liquidated Damages.  In the event Company fails to complete deployment
          ------------------
to a sufficient degree to allow Commercial Service to begin by the date
specified in the mutually agreed project plan, BUYER may assess against Company
liquidated damages, for each week of such delay, in the amount of [*] of the
total price under the applicable purchase order for the delayed item or items,
provided that the total amount of liquidated damages that may be assessed under
this Agreement shall not exceed [*] of the total Product price set forth in the
applicable purchase order and further provided that the assessment of such
liquidated damages by BUYER shall be its [*] remedy for Company's delay in
preparing the BUYER network for commercial service by the date specified in the
mutually agreed project plan.

     Notwithstanding the foregoing provisions of this Section, Company shall not
be responsible for any delay or failure to deliver the Product, and BUYER shall
not be entitled to any liquidated damages or termination rights, to the extent
such delay or failure results from:  (a) any delay or failure by BUYER or any
third party not under Company's control to perform its obligations under or
related to this Agreement or any of its Exhibits or attachments; or (b) any
force majeure event.

     9.   Installation and Acceptance.
          ---------------------------

          9.1  Site Availability.  BUYER shall prepare within the timeframe
               -----------------
agreed to by the parties site(s) for the installation of the Product that meets
the environmental and other requirements of the Product for its installation as
specified by Company. BUYER shall provide access to the sites and the Product
for Company's personnel and other authorized representatives.

          9.2  Installation.  Company or its subcontractors shall install the
               ------------
Product at the site(s). BUYER undertakes and agrees to use its best efforts to
avoid delay in the commencement or performance of the installation by any act or
omission of the BUYER or any of BUYER's employees, agents or representatives.

     The Buyer shall, [*], on the signing of this agreement, and at all times
thereafter during the period of project execution hereunder be responsible for
the following, including site preparation, clean-up, site security, power,
equipment warehousing, provide unrestricted access to network facilities and
equipment sites.

               (a)  Allow employees or agents of Company, Inc. free access to
premises and facilities where the Equipment is warehoused, existing network
facilities and sites where contracted equipment will be installed at all hours
consistent with the requirements of the installation.

               (b)  Environmental -- Assure that the premises will meet all
                    -------------
temperature, humidity controlled, air-conditioned, and other environmental
requirements set forth in the applicable Equipment specifications and will be
dry and free from dust and in such condition as not to be injurious to the
employees or agents of Company, Inc. or the Equipment to be installed.

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

               (c)  Mechanical -- Provide all patching, painting, concrete
                    ----------
openings, conduits, ducts, floors, walls and ceilings reinforcements and/or
modifications, as deemed necessary to house the contracted equipment, or other
mechanical modifications pertinent to this installation as required.

               (d)  Electrical -- Provide ample electric current of proper
                    ----------
voltage for any necessary purpose suitably terminated in rooms or any places
where equipment is to be installed, including but not limited to poles and
towers, where it is required. Provide property ground copper conductor of ample
capacity (minimum #6 AWG) at the Equipment locations. Provide the required -
48vDc power feeds and 120/240 VAC power feeds, all separately fused outlets, as
may be required per individual equipment site.

               (e)  Provide for the termination of any existing service
agreement and for the removal of any existing equipment and cable, as required.

               (f)  Provide suitable and easily accessible floor space, as well
as secured storage, to permit storing adjacent to where Equipment will be used,
and for secure storage of tools, test sets, and employee's personal effects for
the duration of project.

               (g)  Approvals -- Buyer shall be responsible for the timely and
                    ---------
proper securing of all permits, licenses, rights of ways, consents, including
landlords, issuance of frequency spectrum operating licenses and approvals from
the corresponding regulatory authorities, i.e. CONATEL, legal requirements and
fees thereof associated in connection with these for the acquisition,
installation and operation in its network of the contracted Equipment.

               (h)  Buyer specifically agrees to indemnify and hold Company
harmless from all liability and costs arising from the Buyer and its
contractors, subcontractors and employees for site preparation efforts or for
the latent conditions of the site.

     Company, Inc. will install the contracted network access Equipment at the
designated network points of presence (POPs) indicated in the contract technical
schedules and revisions thereof that may result from the network planning, field
and site surveys to be conducted.  Company, however, will not be responsible for
performing civil works, i.e., construction, modifications, power distribution,
painting. plastering, ducts, existing equipment relocations, repairs to Buyer's
premises resulting from the installation of the contracted Equipment except as
expressly agreed by Company in the contract technical schedules.  Buyer hereby
holds Company harmless from any such damage to Buyer's property.

     It is the sole responsibility of the Buyer to perform the installation of
subscriber premises equipment, its proper alignment, and service activation as
line and/or Buyer contracts services with its subscribers.

     Both Buyer and Company, Inc. shall complete the installation services in
accordance with Company standard installation practices and recommendations.
Company shall perform acceptance testing according to Company standards and
specifications on the installed Equipment and Buyer

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

agrees to monitor said testing. Upon completion thereof, as described above,
Company shall notify Buyer that the Equipment has been installed and operates in
accordance with the criteria set forth in Company Specifications.

     If the Equipment does not perform according to the acceptance test criteria
and Company, after having been notified in writing of the defects fails to cure
such defect within [*] of receipt of such notice ("Cure Period"), Buyer has the
right to return the Equipment [*] if such Equipment is shipped to Company no
later than [*] after expiration of the Cure Period.

          9.3  Equipment Acceptance.  The commercial in-service handling of
               --------------------
first call at the end of each deployment phase described in the Price Summary
contained in Exhibit "A" shall constitute the acceptance by Buyer of the
equipment delivered.

     Company and BUYER shall accordingly execute the Acceptance Certificate
forthwith at the conclusion of each deployment phase, substantially in the form
shown in Exhibit G.

     10.  Obligations and Rights of Parties.
          ---------------------------------

     OBLIGATIONS OF COMPANY:

     a)  Engineer, deliver, install and to put in operation the network
expansion and necessary and suitable equipment with all its accessories
contracted by the Buyer, and its interconnection, according to parameters and
conditions set forth in this Contract.

     b)  Furnish new equipment of most recent version, good quality and
compatible with the existing PSTN network of Buyer as per international accepted
standards.

     c)  Train and transfer the necessary knowledge to the qualified TELECO
personnel to operate, exploit and maintain the equipment that will be
provisioned under the terms of the contract.

     d)  Provide the technical services required to perform the design and
commissioning of the proposed network expansion solution, excluding the
installation and placement in service of the subscriber premises equipment and
necessary wire cable plant.  Drop wire installation and modifications or
installation at customer premises are to be carried out and at the cost of [*].
Company will provide and install the necessary cable between the RPs and RPCs.

     OBLIGATIONS OF BUYER:

     a)  Make available to the Company all existing equipment and network
infrastructure required to perform the contracted equipment and expansions,
including but not limited to:  PSTN facilities, equipment sites, switching
systems, PDH and SDH transmission network, inclusive the Banc Nationale D'Haiti
SDH points of presence and associated transmission backbone equipment, ducts,
poles, buildings, cable plant, radio towers, rights of way, as well as, all the
necessary technical

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

engineering information, facilities, licenses and approvals needed to deploy and
interconnect the contracted solution.

     b)  Under the terms of the agreement the Buyer or its designated commercial
agent is solely responsible for all promotions, sales-marketing, commercial
infrastructure, including points of sales and personnel necessary to promote and
commercialize the lines and services contracted within the Republic of Haiti.

     c)  Put in operation the structure and equipment supplied by the Company to
operate, exploit and to maintain the equipment network expansion contracted,
including installation of equipment at end-user premises, installation and
provisioning of primary and secondary drop wire cable plant as well as internal
installation and repairs at customer premises, training of end-user, Buyer
service, billing and collections activities necessary to conduct the marketing,
sale, installation, service processing, billing and collection activities of the
lines/services contracted.

     d)  Insure, by its own account and risk, the contracted equipment,
personnel and goods deployed in its facilities, stored in its warehouses and
under the control of its personnel against all the possible risks.

     e)  The Buyer is solely responsible to ensure through its best efforts,
capacity and experience the optimum profitability, continuity and regularity of
the service, including lines and services sold by the Company and/or its
designated commercial agent and disburse all collected revenues due to
Company/Agent for the sales of the lines and services.

     f)  Permit the use of its installations when required by the Company to
perform equipment installations, interconnections, testing, and any other
activity related to the implementation/operation of the project.

     g)  Provision of the services to the users in the coverage zones
established; and to the billing and collections for the corresponding connection
fees, monthly charges, user fees and other charges from the provision of
services to the users.

     h)  Keep separate accounting and financial records of the project according
with international accounting practices.

     i)  Perform, timely, according to project schedule and engineering the
adequate extensions to existing equipment to interconnect the project with the
existing infrastructure.

     j)  Buyer agrees to grant the Company and/or its designated agent full
rights and privileges to conduct marketing and promotional activities and use of
information and the facilities related to this contract to showcase and
demonstrate its equipment capacities and attributes to other potential clients.

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Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     k)  Buyer agrees to grant Company the necessary Government of the Republic
of Haiti importation exemptions free of any import duties, levies and
restrictions to import test equipment, tools, vehicles, computing equipment,
office equipment, miscellaneous hardware, and other elements needed for the [*]
implementation of the contracted project.

     l)  Buyer agrees to facilitate Company personnel and its sub-contractors
and respective family members the necessary entry visas and work permits to live
and work in the Republic of Haiti during the course of the project.

     m)  Buyer agrees to reinvest in the subsequent project phases, the revenues
from project's revenue generation.

     RIGHTS OF BUYER:

     a.  Exploit the equipment and keep the financial product from the revenue
of the equipment once the financing of project and all other related charges has
been covered.

     b.  Participate in the project field installation activities to obtain
knowledge of the equipment and of the processes of installation and placement in
operation, for which TELECO will appoint personnel properly qualified under the
supervision of the Company.

     c.  Hands-on training to receive technology and knowledge transfer for the
operation, exploitation and corrective and preventive maintenance of the
contracted equipment/solution.

     RIGHTS OF COMPANY:

     a)  Access to Buyer premises to install the equipment, perform equipment
test, interconnections or any other activities related to the project execution
and integration to the existing network.

     b)  Company or a firm representing company must have full access to
accounting files and Accounting Books of Project and to all information related
with the Project.  Company could conduct audits to the project' operations.  To
do such audits, Company reserves the right to do it directly or through a
specialized firm that will be hired for such purpose.  In such cases, Buyer
shall be notified [*] before such audits are going to be conducted.  All project
information shall be confidential and could not be released without the written
consent of both parties.

     c)  To receive the payments, to cover the investment made in equipment and
services as well as the financing charges and any other charges related to the
project, from the total revenues deposited in the escrow account and collected
from the subscribers connected to the installed equipment with the project.

     d)  To receive interest at an interest rate [*] for any delayed payment
whose delay exceeds [*] after payment due date.

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     11.  Project Coordination Committee and Executive Board.  Company and Buyer
          --------------------------------------------------
agree to install [*] after Contract Signature a Project Coordination Committee
"The Committee" whose main purpose will be to coordinate all activities related
to project execution and performance and solve any differences that may arise
during contract execution. The Committee will consist of one representative from
TELECO and one representative from Company. The Committee shall be responsible
for the development and coordination of operational aspects, commercial aspects
and the development of procedures to effectively provide service to the end
users as well as any action required to secure the success and profitability of
the project. Any action or recommendation from the Committee shall be based on
the Contract Terms and Conditions.

     The Committee shall meet at least once every week and produce a weekly
report or on a per  call basis as required by any of the two members appointed
to it.  For each of the members, each party shall appoint a substitute that
shall represent the principal in the event that this one cannot assist to any
specific meetings.  Extraordinary meetings could be call by either party,
meeting place and date shall be agreed, if no agreement is mutually reach,
meeting shall be enforce to be held 8 calendar days after written notification
of request of meeting.

     If any matter is not resolved by the Committee, the General Director of
TELECO or its designated representative and the Sales Vice president of Company
or its designated representative shall constitute the Executive Board "The
Board" of the Project and will solve any matter regarding this.  In any event
any recommendation or resolution of the Committee, which involves or commits
money beyond [*] from either side or a significant deviation from deliverables
(schedule or functions) or any expansion beyond [*] shall be approved by the
Board.

     12.  Functional Verification.  Company shall perform functional
          -----------------------
Verification tests in accordance with the Functional Verification Test procedure
to be provided by Company prior to the commencement of the tests. The BUYER
undertakes and agrees to ensure that there will be no delay in the commencement
or performance of the Functional Verification by any act or omission of the
BUYER or any of BUYER's employees, agents or representatives.

     13.  Licenses.  Company hereby grants BUYER a [*] license to use the
          --------
Software and the Documentation solely in connection with the Products purchased
by BUYER pursuant to this Agreement, at the Site(s) and for the purpose and in
the manner for which the Product was designed and intended by Company, all in
accordance with the software license provisions set forth in Exhibit B attached
hereto. In no event shall BUYER have the right to market, sell, lease, license,
sublicense, assign, distribute or otherwise transfer the Products or any part
thereof without the express prior written consent of Company.

     BUYER shall not remove nor alter, nor permit the removal or alteration of,
any Company or third-party trademarks, copyright notices, tags, labels or other
identifying markings placed on any Products, products, packages or containers
provided hereunder without the prior written consent of Company.  In no event
shall BUYER have the right to market, sell, lease, license or otherwise
distribute the Products.

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     14.  Title and Risk.  Title to the Product shall pass to BUYER upon
          --------------
Company's shipment of the Product(s) to BUYER [*]. Risk of loss to the Product
shall pass to BUYER in accordance with [*].

     Title to all Software and Documentation shall remain vested in Company.
All intellectual property rights to the Product, Documentation, Applications and
Software or any part thereof, including without limitation all patents,
trademarks, trade names, copyrights, designs, know how and trade secrets shall
remain vested in Company and its licensors at all times.

     15.  Warranty.
          --------

          15.1  Limited Warranty.  Company warrants that the non-Software
                ----------------
Products, as delivered, will be free from defects in materials and workmanship
during the Warranty Period.

     This warranty will apply to hardware items directly manufactured by
Company, except the telephone subscriber terminal equipment, shall expire after
[*] from the date of shipment or [*] from the date of functional verification is
completed as defined herein this contract's Clause 1 Definitions, numerals 1.1
"Functional Verification" and 1.2 "Commercial Service" and Clause 12 "Functional
Verification".  However, with respect to the telephone terminal equipment, the
Company agrees to provide the Customer a [*] additional supply of terminals over
the purchased quantity to support the warranty of units found defective directly
attributed to manufacturing defects.

     The warranty service shall be administered in accordance with Company
recommendations and practices in effect at the time of shipment.  Buyer shall
notify Company in writing immediately upon discovery of any defects within the
warranty period for return authorization and instructions.  Upon receipt of the
returned Equipment prepaid by Buyer, Company' sole obligation shall be to repair
and/or replace the part found to be defective, at its option.  Replacement
Equipment may be new, or repaired.  Returned replaced Equipment shall become
Company's property.  Replacement Equipment shall be warranted for the unexpired
portion of the returned Equipment's warranty.

     The foregoing warranty is contingent upon proper use of the Products in the
applications for which they were intended.  This warranty shall not apply to
defects or failures to a Product which was subjected to:  (i) accident, neglect
or misuse; (ii) failure of or defect in electrical power, external electrical
circuitry, air-conditioning or humidity control; (iii) the use of software or
Product not provided by Company or approved in writing by Company for use with
the Product; (iv) unusual stress; (v) improper use or maintenance; (vi) electro-
static discharges; (vii) unusual operational or environmental stress or (vii)
modification, adjustment, repair, service or installation by any party other
than Company, or persons authorized and certified by Company.

     Company's sole liability and BUYER's exclusive remedy shall be limited to
repair, replacement, credit or refund, [*].[*] shall pay all freight charges for
shipment of any replacement Product to BUYER during the Warranty Period.
Replacement or repair of a Product shall not extend the original warranty for
that Product or repair part.

                                      12
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

          15.2  Disclaimer of Warranties.  COMPANY MAKES NO WARRANTIES OR
                ------------------------
CONDITIONS, EXPRESS, STATUTORY, IMPLIED, OR OTHERWISE, AND COMPANY SPECIFICALLY
DISCLAIMS THE IMPLIED WARRANTIES AND CONDITIONS OF NONINFRINGEMENT,
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NOTWITHSTANDING THE
FOREGOING, COMPANY DOES NOT EXCLUDE LIABILITY TO THE EXTENT THAT SUCH LIABILITY
MAY NOT BE EXCLUDED OR LIMITED BY LAW.

          15.3  Inherently Dangerous Applications.  THE PRODUCTS ARE NOT
                ---------------------------------
AUTHORIZED FOR USE AS CRITICAL COMPONENTS IN LIFE SUPPORT DEVICES OR SYSTEMS OR
FOR USE IN AVIATION, NUCLEAR OR ANY OTHER INHERENTLY DANGEROUS APPLICATION
WITHOUT THE EXPRESS WRITTEN APPROVAL OF THE MANAGING DIRECTOR OF COMPANY. LIFE
SUPPORT DEVICES OR SYSTEMS ARE THOSE WHICH ARE INTENDED TO SUPPORT OR SUSTAIN
LIFE AND WHOSE FAILURE TO PERFORM CAN REASONABLY BE EXPECTED TO RESULT IN A
SIGNIFICANT INJURY TO THE USER. CRITICAL COMPONENTS ARE THOSE COMPONENTS WHOSE
FAILURE TO PERFORM CAN REASONABLY BE EXPECTED TO CAUSE FAILURE OF A LIFE SUPPORT
DEVICE OR SYSTEM OR AFFECT ITS SAFETY OR EFFECTIVENESS.

          15.4  Product Returns.  In order to return Product that BUYER believes
                ---------------
is defective, BUYER shall (i) notify Company in writing that such Product is
believed to be defective and furnish a detailed explanation of any alleged
problem; (ii) obtain a RMA number from Company for the alleged defective
Product; and (iii) within [*] of receipt of the RMA number, return such Product
to Company, [*], with the RMA number prominently attached to Company's facility
in Miami, U.S.A. or such other location as Company may designate in writing in
each case during the Warranty Period.

     BUYER shall pay shipping charges for returned Product shipped to Company
and Company shall pay shipping charges for returned product shipped to BUYER.

     16.  Indemnification.
          ---------------

          16.1  Indemnity.  BUYER agrees that Company has the right to defend,
                ---------
or at its option to settle, and Company agrees, at its own expense, to defend or
at its option to settle, any third party claim, suit or proceeding
(collectively, "Action") brought against BUYER alleging the Products infringe
any United States patent, copyright or Trademark in existence as of the
Effective Date and enforceable in the BUYER's country, subject to the
limitations hereinafter set forth.

     Company will have sole control of any such Action or settlement
negotiations, and Company agrees to pay, subject to the limitations hereinafter
set forth, any final judgment entered against BUYER on such issue in any such
Action defended by Company.  BUYER agrees that Company will be relieved of the
foregoing obligations unless BUYER notifies Company promptly in writing of such
Action, gives Company authority to proceed as contemplated herein, and gives
Company proper and full information and assistance to settle and/or defend any
such Action.  If it is

                                      13
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

adjudicatively determined, or if Company believes, that the Products, or any
part thereof, infringe any patent, copyright or trademark, or if the sale or use
of the Products, or any part thereof, is, as a result, enjoined, then Company
may, at its election, option, and expense: (i) procure for BUYER the right under
such patent, copyright or trademark to sell or use, as appropriate, the Products
or such part thereof; or (ii) replace the Products, or part thereof, with other
noninfringing suitable Products or parts; or (iii) suitably modify the Products
or part thereof; or (iv) remove the Products, or part thereof, terminate
distribution or sale thereof and refund the payments paid by BUYER for such
Products less a reasonable amount for use and damage. Company will not be liable
for any costs or expenses incurred without its prior written authorization, or
for any installation costs of any replaced Products.

          16.2  Limitations.  Notwithstanding the provisions of Section 16.1
                -----------
above, Company has no liability to BUYER for (i) any infringement of patent or
copyright claims alleging infringement by completed equipment or any assembly,
circuit, combination, method or process in which any of the Products may be used
but not covering the Products standing alone; (ii) any trademark infringements
involving any marking or branding not applied by or requested by Company, or
involving any marking or branding applied by Company at the request of BUYER; or
(iii) the modification of the Products, or any part thereof, unless such
modification was made by Company, where such infringement would not have
occurred but for such modifications.

          16.3  Disclaimer.  COMPANY'S LIABILITY ARISING OUT OF OR RELATING TO
                ----------
THIS SECTION 16 SHALL NOT EXCEED THE AGGREGATE AMOUNTS PAID BY BUYER TO COMPANY
FOR THE ALLEGEDLY INFRINGING PRODUCTS THAT ARE THE SUBJECT OF THE INFRINGEMENT
CLAIM. THE FOREGOING PROVISIONS OF THIS SECTION 16 STATE THE ENTIRE LIABILITY
AND OBLIGATIONS OF COMPANY AND THE EXCLUSIVE REMEDY OF BUYER AND ITS CUSTOMERS,
WITH RESPECT TO ANY ALLEGED PATENT, COPYRIGHT OR TRADEMARK INFRINGEMENT BY THE
PRODUCTS OR ANY PART THEREOF.

     17.  Limitation of Liability.  Notwithstanding any other clause in this
          -----------------------
Agreement, in no event will Company be liable for any special, indirect,
incidental, punitive or consequential damages (including without limitation any
damages for loss of data, use or profits) arising from or in connection with
this Agreement or the use or performance of any Product whether in an action
based on contract, tort or any other legal theory, whether or not Company has
been notified of the possibility thereof.

     Notwithstanding any other clause in this Agreement, in no event will
Company's total aggregate liability for any damages arising from or in
connection with this Agreement or the use or performance of any Product whether
in actions based on contract, tort or any other legal theory, and whether or not
Company has been notified of the possibility thereof, exceed the price paid by
the BUYER for the relevant item or component of Product giving rise to the claim
amortized on a straight line basis over [*] from the date of the applicable
purchase order.

     18.  Termination.  This Agreement may be terminated by either party:
          -----------

                                      14
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

          (a)  if the other party is in material breach of this Agreement and
fails to cure such breach within [*] of receiving written notice of the breach.
Provided that the breaching party continues to make diligent and good faith
efforts to cure the breach, the breaching party shall be granted a [*] extension
of time to cure the breach.

          (b)  Upon [*] prior written notice if any of the following
circumstances remain uncured: (i) if the other party becomes insolvent or unable
to pay its debts in the ordinary course of its business; (ii) if a voluntary or
involuntary petition under applicable bankruptcy laws is filed by or against the
other party; (iii) if a receiver is appointed for the business affairs of the
other party or the other party makes an assignment for the benefit of creditors;
or (iv) if the other party liquidates or ceases doing business as a going
concern.

     Any provision of this Agreement, which by its nature survives termination,
shall survive termination of this Agreement.

     19.  Training.  Company shall offer technical training for BUYER's
          --------
personnel in accordance with Exhibit F

     20.  Governing Law and Regulations.  BUYER agrees to comply with all
          -----------------------------
relevant laws, export or otherwise of the United States to assure that the
Product and Documentation are not exported or otherwise transferred in violation
of such laws. Prior to exporting or transferring the Product or Documentation,
BUYER shall obtain Company's written consent and a license from the U.S.
Department of Commerce and/or any other appropriate agency of the U.S.
Government, as required.

     21.  General Provisions.
          ------------------

          21.1  No Liability for Other Party's Acts.  Neither party shall be
                -----------------------------------
liable for any losses, injuries, or damages caused by or attributable to the
acts and/or omissions of the other party, its employees, or its agents.

          21.2  Independent Contractors.  The parties hereto agree that they are
                -----------------------
independent contractors. This Agreement shall not be construed to create or
result in a partnership or joint venture between the parties hereto, nor to make
either party the agent of the other party. This Agreement shall not create any
third party beneficiary rights.

          21.3  Notices.  Any notices, requests, demands or other communications
required or permitted under this Agreement shall be in writing and shall be
sufficiently communicated if delivered (i) in person or by means of a recognized
courier service, (ii) sent by facsimile with written confirmation sent by
regular airmail, or (iii) if sent by registered airmail, return receipt
requested, to the recipient party at its address appearing in the preamble
hereof or to such other address as such party may have designated for such
purpose by notice previously given to the other party in accordance with the
terms hereof.

                                      -15-
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     COMPANY:     UTStarcom, Inc.
                  Attn:  Omar Graibe
                  Title:  Managing Director
                  Caribbean & LatinAmerican (CALA)
                  1581 Pines Blvd. #308,
                  Pembroke Pines, FL 33027 USA
                  Fax:  +1 (954) 447 3320

     BUYER:       Telecommunications D'Haiti S.A.M.
                  Title: Alphonse Inevil
                  Title: Director
                  FAX +509 45 2775

     Notices shall be deemed to have been received if delivered in person, on
the same day; if sent by facsimile, 24 hours after transmission; if sent by
registered mail, seven (7) days after deposit into the respective national mail
Product.

          21.4  Security Interest.  Company reserves, and BUYER hereby grants to
                -----------------
Company, a security interest in [*] until Company has received payment in full.
BUYER agrees at Company's request to execute any and all financing statements
and to take such other action as Company may reasonably request to carry out the
intent of this Section.

          21.5  No Assignment.  Neither party may assign its rights and/or
                -------------
obligations hereunder without the prior written consent of the other party,
which consent shall not be unreasonably withheld. Notwithstanding the
aforementioned, Company reserves the right and Buyer agrees, that Company could
assign to a third party institution its financial rights related to this
Agreement.

          21.6  Jurisdiction.  This Agreement shall be governed by, and
                ------------
construed in accordance with, the laws of California, U.S.A., without reference
to the conflict of laws provisions thereof.

          21.7  Publicity.  The substance and timing of any written or other
                ---------
public disclosure relating to this Agreement, in the form of a press release or
similar disclosure shall be subject to the prior written approval of both
parties.

          21.8  No Violation of Applicable Law.  If any provision of this
                ------------------------------
Agreement is held to be invalid under any applicable law, such provision shall
be ineffective to the extent of such violation without invalidating other
provisions of this Agreement.

          21.9  Conflicting Exhibits.  In the event that any provision of the
                --------------------
Exhibits or any other attachments to this Agreement are deemed to be in conflict
with the provisions of this Agreement, the provisions of this Agreement shall
control.

                                      -16-
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

          21.10  No Waiver.  Any failure by either party to enforce strict
                 ---------
performance by the other party of any provision herein shall not constitute a
waiver of the right to subsequently enforce such provision or any other
provision of this Agreement.

          21.11  Arbitration.  Any controversy or claim arising out of or
                 -----------
related to this Agreement shall be submitted to binding arbitration in San
Francisco, State of California, U.S.A in accordance with the then prevailing
International Chamber of Commerce ("ICC") procedural Arbitration Rules. Any such
arbitration shall be held in English before a single arbitrator who shall be
knowledgeable in telecommunications and data processing Products. The parties
consent and submit to the jurisdiction of the Courts of the State of California,
United States of America in connection with any award made by the arbitrator(s).
Each party shall bear its own costs and expenses (including attorneys' fees)
incurred in connection with this section.

          21.12  Non-Monetary Remedies.  The parties hereby acknowledge that
                 ---------------------
monetary damages may not be a sufficient remedy for breaches of the licensing
provisions set forth in Exhibit B or of the Non-Disclosure Agreement annexed
hereto as Exhibit C and that either party may be entitled to such injunctive or
equitable relief for actions or claims alleging such breach(es) as may be deemed
proper by a court of competent jurisdiction.

          21.13  Force Majeure.  Neither party shall be liable for damages
                 -------------
resulting from its failure to perform its obligations hereunder (other than the
obligation to make payments owing to the other party) if such failure arises out
of or in connection with any act of war, civil disturbance, strikes, earthquake,
flood, embargo, failure or unavailability of means of communication, failure or
unavailability of means of transportation or any other cause or event of force
majeure beyond the reasonable control of the party failing to perform or of its
agents and contractors.

          21.14  Entire Agreement.  This Agreement and the Exhibits hereto
                 ----------------
constitute the entire agreement between Company and BUYER relating to the
subject matter hereof and supersede all statements, representations, and
understandings, which have been made by either party or their agents or
representatives prior to the execution of this Agreement. No modification of
this Agreement shall be binding upon either party unless made in writing and
executed on behalf of that party by its duly authorized representative.

          21.15  May Be Executed in Counterparts.  This Agreement may be
                 -------------------------------
executed in counterparts and by facsimile such that when taken together the
counterparts shall be deemed a true original of the Agreement between the
parties.

          21.16  Contract Validity.  The validity of this Contract is contingent
                 -----------------
upon TELECO obtaining the License approval to operate in the proposed solution
frequency band.

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     IN WITNESS WHEREOF, a duly authorized representative of each party has
executed this Agreement as of the date set forth below.

<TABLE>
<CAPTION>

COMPANY                                  BUYER
<S>                                    <C>
By:  /s/ Omar A. Graibe                  By:  /s/ Patrick A. Joseph
   ---------------------------------        ------------------------------------
Name:    Omar A. Graibe                  Name:    Patrick A. Joseph

Title:   Managing Director, Caribbean    Title:   Directeur General, Telecommunications
         and Latin America               d'Haiti S.A.M.

Date:    04/12/01                        Date:  04/12/01
</TABLE>

<PAGE>

Price and Equipment Lists                                              Exhibit A
                                                           Contract No. HT041101

                                      [*]

<PAGE>

[*]Strategic Alliance [*] Lines                            Contract No. HT041101
Teleco Network Expansion

EXHIBIT B:  END-USER SOFTWARE LICENSE
---------

     The following terms and conditions shall constitute the license ("License")
by which software that accompanies, whether by being embedded into a hardware
element or component or by means of a separate media such as diskette or compact
disc, or otherwise ("Software"), is transferred in connection with products
("Products") supplied by Company ("Licensor").

     Grant.  The person who acquires any Product ("Licensee") may install and
     -----
use the Software [*].  Licensee may copy the Software only for backup purposes,
provided that Licensee reproduces all copyright and other proprietary notices
that are on the original copy of the Software.

     Restrictions.  Licensee may not use, copy, modify, or transfer the
     ------------
Software, or any copy thereof, in whole or in part, except as expressly
permitted by this License.  Licensee may not reverse engineer, disassemble,
decompile, or translate the Software, or otherwise attempt to derive the source
code of the Software, or permit any other person to do any of the foregoing.
Any attempt to transfer any right, duty or obligation in this License is void.
Licensee may not rent, lease, loan, resell for profit, or distribute the
Software, or any part thereof.  License may not modify or create derivative
works based on the Software in whole or in part.

     Ownership.  The Software is not sold but is only licensed to Licensee for
     ---------
use only in accordance with this License, and Licensor reserves all rights not
expressly granted to Licensee.

     Copyright.  United States copyright laws and international treaty protect
     ---------
the Software.  Licensor or its suppliers or licensors owns the Software.

     Term.  This License will terminate immediately upon notice to Licensee if
     ----
Licensee materially breach any term or condition of this License.  Licensee
agrees upon termination promptly to destroy the Software and all copies thereof.

     Warranty Disclaimer.  THE SOFTWARE IS PROVIDED TO LICENSEE "AS IS" AND
     -------------------
LICENSOR AND ITS SUPPLIERS EXPRESSLY DISCLAIM ALL WARRANTIES INCLUDING THE
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-
INFRINGEMENT.

     Limitation of Remedies.  IN NO EVENT SHALL LICENSOR OR ITS SUPPLIERS BE
     ----------------------
LIABLE TO LICENSEE OR TO ANY OTHER PERSON FOR ANY LOST PROFIT, CORRUPTION OR
LOSS OF DATA, INTERRUPTION OF BUSINESS, OR OTHER EXEMPLARY, SPECIAL, INDIRECT,
INCIDENTAL OR CONSEQUENTIAL DAMAGE OF ANY KIND ARISING OUT OF THE USE OR
INABILITY TO USE THE SOFTWARE, EVEN IF LICENSOR HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH LOSS OR DAMAGE AND WHETHER OR NOT SUCH LOSS OR DAMAGE IS
FORESEEABLE.

                                     -20-

<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     Export Law.  The Software and related technology are subject to U.S. export
     ----------
control laws and may be subject to export or import regulations in other
countries.  Licensee agrees strictly to comply with all such laws and
regulations and acknowledge that Licensee has the responsibility to obtain such
licenses to export, re-export or import as may be required.

     General.  The laws of the State of California, USA, will govern this
     -------
License.  The Federal and State Courts located in San Francisco County,
California, USA shall have sole jurisdiction over all disputes arising in
connection with this License.  If any provision of this License is held to be
unenforceable, that provision will be removed and the remaining provisions will
remain in full force.  This License is the complete and exclusive statement of
the agreement between Licensee and Licensor and supersedes all prior agreements,
oral or written, and all other communications between Licensee and Licensor in
relation to the subject matter of licensing the Software.

     Licensee agrees to the terms and conditions set forth above in this License
as of the effective date of this agreement date.

                                      -2-
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

EXHIBIT C:  MUTUAL NON-DISCLOSURE AND CONFIDENTIALITY AGREEMENT
---------

     THIS AGREEMENT IS ENTERED INTO BY AND BETWEEN COMPANY, INC., 1275 HARBOR
BAY PARKWAY, SUITE 100, ALAMEDA, CA 94502 ("Company") AND TELECOMMUNICATIONS
D'HAITI S.A.M. ("BUYER").

     1. This Agreement shall apply to all confidential and proprietary
information disclosed by the parties to the other, including but not limited to
confidential product planning information, product specifications and other
proprietary and business and technical information (hereinafter referred to as
"Confidential Information"). As used herein, "Confidential Information" shall be
in written, graphic, machine recognizable or other tangible or electronic form
and marked "Confidential" or "Proprietary" or shown by implication that it is
imparted or disclosed in confidence, or if disclosed orally or visually, shall
be reduced to writing in summary form, identified as "Confidential Information"
and sent to the Receiving Party within 15 days following such oral or visual
disclosure.

     2. Company and BUYER mutually agree to hold the other party's Confidential
Information in strict confidence and not to disclose such Confidential
Information to any third parties except after receiving prior consent by the
disclosing party in writing.  Company and BUYER shall use the same degree of
care to avoid disclosure of such Confidential Information as each employs with
respect to its own proprietary information of like importance or a greater
degree if reasonable.

     3. Company and BUYER agree that they will not use the other party's
Confidential Information for any purpose other than for the intended purposes,
without the prior written permission of the other party.

     4. Company and BUYER mutually agree they may disclose such Confidential
Information to their respective responsible employees with a bona fide need to
know, and Company and BUYER agree to instruct all such employees not to disclose
such Confidential Information to third parties and will ensure that such
employees have agreed to similar non-disclosure provisions with Company or the
BUYER, its own employees respectively.

     5. Information shall not be deemed Confidential Information and the
receiving party shall have no obligation regarding any information for which it
can be proven in written documentation (a) is already known to the receiving
party at the time that it is disclosed without use of the Confidential
Information; (b) is or becomes publicly known through no wrongful act contrary
to this Agreement of the receiving party; (c) is rightfully received from a
third party without obligation of confidence or restriction on disclosure from
receiving party and without breach of this Agreement; (d) is independently
developed by the receiving party without use of Confidential Information; (f) is
disclosed pursuant to a requirement of a valid court order provided that the
Receiving Party provides (i) prior written notice for the disclosing party of
such obligation and (ii) the opportunity to oppose such disclosure and (iii) it
is disclosed for the extent and purposes or the order only.

                                      -22-
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

     6.  All Confidential Information shall remain the property of the
disclosing party, and upon the written request of either party, the other party
shall promptly return to the disclosing party all Confidential Information
disclosed to it and all copies thereof or at the disclosing party's option shall
destroy all such Confidential Information and shall provide the receiving party
with a certificate that all Confidential Information has been destroyed.

     7.  Company and BUYER recognize and agree that nothing contained in this
Agreement shall be construed as granting any rights, by license or otherwise to
any Confidential Information disclosed pursuant to this Agreement.

     8.  This agreement shall be binding upon and inure to the benefit of the
party's successors and assigns. This Agreement shall not be assignable by either
party for the written consent of the other party, and any purported assignment
not permitted hereunder shall be void. This document constitutes the entire
agreement between the parties with respect to the subject matter hereof, and
shall supersede all previous, understandings and agreements, either oral or
written, between the parties or any official or representative thereof.

     9.  The obligations undertaken by each party pursuant to this Agreement
shall remain in effect for three years from the last date of disclosure of
Confidential Information, and shall survive any termination or expiration
hereof.

     10. None of the Confidential Information disclosed by the parties
constitutes any representation, warranty, assurance, guarantee or inducement by
either party to the either with respect to the infringement of trademarks,
patents, copyrights; any right of privacy; or any rights of third persons.

     11. The parties hereto are independent contractors.

     12. This Agreement may be modified only by written amendment signed by both
parties.  This Agreement shall be construed in accordance with the laws of the
State of California without regard to the conflict of laws provisions and shall
be subject to the jurisdiction of the courts of the State of California.

     13. The receiving party may make copies of Confidential Information only to
the extent necessary for the purpose of this Agreement provided that the copies
are marked "Confidential" and treated as Confidential Information in accordance
with the terms of this Agreement.

     14. Accordingly, nothing in this Agreement will be construed as a
representation or inference prohibiting either party from developing products,
having products developed for it, from entering into joint ventures, alliances,
or licensing arrangements that all without violation of this Agreement, compete
with the products or systems embodying the Confidential Information.

                                      -23-
<PAGE>

Strategic Alliance [*] Lines                               Contract No. HT041101
Teleco Network Expansion

EXHIBIT D:  BUSINESS PLAN AND PROJECT COMMERCIAL MILESTONES
---------

                                      [*]

                                      -24-
<PAGE>

Project Implementation Schedule                                        Exhibit E
                                                           Contract No. HT041101

                                      [*]

                                      -25-
<PAGE>

EXHIBIT F:  TRAINING AND TECHNOLOGY TRANSFER
---------

                                      -26-
<PAGE>

                                TRAINING COURSE

                Participants:   [*]
                Time:           [*]
                Duration:       [*]

Objectives:

       .      Describe the proposed solution features and characteristics,
              including an introduction to the PHS air interface characteristics
              and to facilitate network planning and system configuration.
       .      Describe the features and functions of each component of the
              proposed solution equipment set, to support the operation and
              maintenance of the equipment by Teleco's personnel during and
              after the installation.
       .      Train personnel in the use of the [*] as part of its operations
              with the various elements of proposed solution.

Training Course Summary:

     [*]

     [*]

                                      -27-
<PAGE>

     EXHIBIT G:  FINAL ACCEPTANCE CERTIFICATE
     ---------

                                      -28-
<PAGE>

                          FINAL ACCEPTANCE CERTIFICATE
                          ----------------------------

DATE:_________________________________

CONTRACT:_____________________________

PHASE #:______________________________

PHASE AMOUNT:_________________________

CUSTOMER:_____________________________

BY ITS SIGNATURE BELOW, THE ABOVE NAMED CUSTOMER CERTIFIES THAT:

1)  WITH RESPECT TO THE CONTRACT IDENTIFIED ABOVE, THE CUSTOMER HAS FULLY
    ACCEPTED DELIVERY OF THE EQUIPMENT DESCRIBED IN THE ABOVE REFERENCED
    CONTRACT PHASE, WITH TITLE FULLY PASSING TO THE CUSTOMER.

2)  INSTALLATION OF THE EQUIPMENT HAS BEEN FULLY COMPLETED FOR THE CUSTOMER BY
    UTSTARCOM AND/OR ITS AGENTS OR SUBCONTRACTORS.

3)  ALL TRIAL PERIODS, PRELIMINARY TESTING, COMMISSIONING AND FINAL ACCEPTANCE
    TESTING AS REQUIRED FOR THE ABOVE-DESCRIBED PHASE HAS BEEN COMPLETED TO THE
    FULL SATISFACTION OF THE CUSTOMER.

4)  ALL SERVICES TO BE PROVIDED TO THE CUSTOMER PRIOR TO AND AS A PART OF FINAL
    ACCEPTANCE TESTING, AS REQUIRED BY THE ABOVE-DESCRIBED CONTRACT, HAVE BEEN
    SUBSTANTIALLY COMPLETED TO THE FULL SATISFACTION OF THE CUSTOMER.

5)  UTSTARCOM IS ENTITLED TO FULL PAYMENT OF THE CONTRACT AMOUNT FOR THE PHASE
    IDENTIFIED ABOVE.

6)  THE CUSTOMER'S SIGNATURE OF THIS FINAL ACCEPTANCE CERTIFICATE IN NO WAY
    RELIEVES UTSTARCOM OF ANY WARRANTY, POST-ACCEPTANCE MAINTENANCE, OR
    EQUIPMENT UPGRADE OBLIGATIONS CONTAINED WITHIN THE ABOVE-REFERENCED
    CONTRACT.

7)  THIS CERTIFICATE SUPERSEDES ANY CONTRARY ORAL OR WRITTEN AGREEMENTS OR
    NEGOTIATIONS THAT MAY HAVE OCCURRED PRIOR TO THE SIGNING OF THIS
    CERTIFICATE.

_______________________________________
NAME

_______________________________________
TITLE

_______________________________________
CUSTOMER NAME

_______________________________________

                                      -29-<PAGE>

                                                                   Exhibit 10.17

                       DEVELOPMENT AND LICENSE AGREEMENT
                       ---------------------------------

          THIS AGREEMENT is made effective as of May 25, 2001 ("Agreement") by
and between ASIP, Inc., a Delaware corporation ("ASIP"), with its principal
place of business at 155 Pierce Street, Somerset, New Jersey 08873, and
Multilink Technology Corporation, a California corporation ("MLTC"), with its
principal place of business at 300 Atrium Drive, 2/nd/ Floor, Somerset, New
Jersey 08873.

                               R E C I T A L S :
                               ----------------
          WHEREAS, MLTC desires to engage ASIP to develop certain Devices (as
defined in Section 1.8 hereof) based on MLTC's requirements;

          WHEREAS, ASIP and MLTC wish to set forth the parties' respective
proprietary rights in the Devices; and

          WHEREAS, ASIP desires to sell to MLTC and MLTC desires to purchase
from ASIP its requirements for the Devices after its development, subject to the
terms and conditions of this Agreement.

                               A G R E E M E N T
                               -----------------
          In consideration of the mutual promises and covenants set forth below,
the parties agree as follows:

          1.   Definitions.  As used in this Agreement, these terms shall have
               -----------
the following definitions:

               1.1       "ASIP Technology" means any and all Proprietary Rights
                         -----------------
of ASIP being provided by ASIP in connection with the development of the
Devices, including but not limited to those listed on Schedule 1.1 attached
                                                      ------------
hereto.

               1.2       "Change in Control" means a change in ownership or
                          -----------------
control of ASIP effected through any of the following transactions: (a) merger,
consolidation or reorganization approved by ASIP's stockholders, unless
securities representing more than fifty percent (50%) of the total combined
voting power of the voting securities of the successor corporation are
immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned,
directly or indirectly and in substantially the same proportion, by the persons
who beneficially owned ASIP's outstanding voting securities immediately prior to
such transaction; (b) any stockholder-approved transfer or other disposition of
all or substantially all of ASIP's assets; or (c) the acquisition, directly or
indirectly by any person or related group of persons (other than ASIP or a
person that directly or indirectly controls, is controlled by, or is under
common control with, ASIP), of beneficial ownership (within the meaning of Rule
13d-3 of the 1934 Act) of securities possessing more than fifty

                                      -1-
<PAGE>

percent (50%) of the total combined voting power of ASIP's outstanding
securities pursuant to a tender or exchange offer made directly to ASIP's
stockholders.

          1.3       "Confidential Information" means any and all information and
                    --------------------------
data of either party ("Disclosing Party") which is disclosed to the other party
("Receiving Party") pursuant to this Agreement, whether written, oral or both,
whether tangible or intangible, irrespective of the medium in which such
information or data is embedded.  Confidential Information will include, but not
be limited to, the terms of this Agreement (including all schedules and exhibits
attached hereto), any non-public Proprietary Rights, Joint Technology, and any
other trade secrets, know-how, inventions, techniques, processes, algorithms,
software programs, schematics, designs, contracts, customer lists, and financial
information.

          1.4       "Deliverable" means the materials or designs to be provided
                    -------------
by ASIP to MLTC as specified on Exhibit A, the delivery dates of which shall be
                                ---------
specified on the Development Schedule.

          1.5       "Design" means the functional design of the Devices
                    --------
developed after the Effective Date.

          1.6       "Development Expenses" mean the cost of labor and material
                    ----------------------
associated with the development of the Devices incurred by ASIP, as further
specified in Section 4.1.

          1.7       "Development Schedule" means the schedule setting forth a
                    ----------------------
description for the performance of the parties' respective obligations under
this Agreement with respect to the development of the Devices, to be agreed to
by the parties in accordance with Section 2.2.

          1.8       Devices" means the 40Gb/s devices to be developed pursuant
                    --------
to this Agreement, as described on Exhibit A.
                                   ---------
          1.9       "Effective Date" means the date of this Agreement as
                    ----------------
indicated above.

          1.10      "Final Approval Date" means the actual date of the last
                    ---------------------
approval of the Devices under Section 2.6.

          1.11      "MLTC Technology" means any and all Proprietary Rights of
                    -----------------
MLTC being provided by MLTC in connection with the development of the Devices,
including but not limited to those listed on Schedule 1.11 attached hereto.
                                             -------------
          1.12      "Invention" means any idea, design, concept, technique,
                    -----------
invention, discovery or improvement, whether or not patentable, made solely or
jointly by one or more employees or consultants of ASIP or MLTC, provided that
either the conception or reduction to practice occurs in the performance of work
related to the development of the Devices under this Agreement.

          1.13      "Joint Technology" means those Inventions or other materials
                    ------------------
consisting of the specific results of the parties' partial or completed design
and development work under this Agreement, as embodied in all tangible, written,
graphic and other documentary forms, as well as

                                      -2-
<PAGE>

intangible forms, but shall specifically exclude the ASIP Technology and the
MLTC Technology.

          1.14      "Proprietary Rights" means any and all patents, patent
                    --------------------
applications, copyrights, trade secrets, technical information, know-how, ideas,
designs, concepts, techniques, utility models, inventions, discoveries or
improvements, mask works and all other intellectual property (whether patentable
or not) including common law rights developed prior to the Effective Date (a)
which are owned or licensed by a party hereto, which rights such party has the
right to sublicense, and (b) which are reasonably necessary to develop,
manufacture and sell the Devices.

          1.15      "Specifications" mean the functional specifications for the
                    ----------------
Devices to be agreed to by the parties in accordance with Section 2.1.

     2.   Device Development.  Development of the Devices will take place
          ------------------
as follows:

          2.1       Specifications.  ASIP and MLTC shall agree in writing upon
                    --------------
the preliminary Specifications for the Devices not later than forty-five (45)
days from the date hereof.

          2.2       Development Schedule; Deliverables.  ASIP and MLTC shall
                    ----------------------------------
agree in writing upon the milestones for the development of Devices, to be set
forth in the Development Schedule not later than forty-five (45) days from the
date hereof.  The Deliverables shall be delivered pursuant to the terms of the
Development Schedule and in partial consideration of the Development Expenses.

          2.3       ASIP's Obligations.  ASIP will use good faith and reasonable
                    ------------------
commercial efforts to design, develop and prototype the Devices in conformance
with the Specifications and in the manner set forth in this Agreement and
provide the Deliverables for which it is the responsible party on the
Development Schedule, which Development Schedule may be modified in accordance
with the terms hereof and upon the mutual agreement of both parties.

          2.4       MLTC's Obligations; Equipment.
                    -----------------------------

                    2.4.1          Development.  MLTC will use good faith and
                                   -----------
reasonable commercial efforts to assist in the design, development and
prototyping of the Devices in the manner set forth in this Agreement.  In
connection therewith, on or prior to the Effective Date, MLTC and ASIP each will
assign a technical coordinator who shall act as the primary contact with the
other party.  The initial technical coordinator for MLTC shall be David Cheskis,
and the initial technical coordinator for ASIP shall be Miland Gokhale.

                    2.4.2          Equipment Consignment.  Exhibit B sets forth
                                   ---------------------   ---------
a list of equipment (including its estimated monetary value) (the "Equipment")
which is hereby consigned from MLTC to ASIP. The first priority for the use of
such Equipment by ASIP shall be for ASIP to perform its obligations under this
Agreement and the Supply Agreement (as defined herein) for MLTC. Any excess
capacity for the Equipment available after satisfying such first priority may be
used by ASIP as it deems appropriate in its sole and absolute discretion. Title
to all such Equipment shall remain with MLTC unless and until ASIP exercises its
option to purchase the

                                      -3-
<PAGE>

Equipment under Section 2.4.3(a), or MLTC utilizes the Equipment to purchase
shares of ASIP pursuant to Section 2.4.3(b). Unless otherwise agreed to by MLTC,
ASIP shall insure the Equipment against loss or damage by reason of fire, flood,
accident, theft, riot or civil commotion, in an amount not to exceed three
million five hundred thousand dollars ($3,500,000). Unless and until title to
the Equipment is transferred to ASIP from MLTC, (i) all risk of loss related to
such Equipment shall belong to MLTC, and ASIP shall be responsible for the cost
of routine maintenance of such Equipment, and (ii) the cost of all major repairs
and replacement of any such Equipment due to faulty workmanship shall borne by
MLTC, which shall reimburse or replace such Equipment upon the reasonable
request of ASIP. Other than upon expiration or termination of this Agreement,
MLTC shall give ASIP one hundred eighty (180) days notice prior to retaking
possession of any of such Equipment, provided, that MLTC shall not retake
possession of any such Equipment at any time prior to the expiration or
termination of this Agreement to the extent it is reasonably required for use by
ASIP to fulfill its obligations under this Agreement.

                    2.4.3  Options to Purchase or Lease Equipment; Right of
                           ------------------------------------------------
First Refusal.
-------------

                          (a) ASIP Option.  Upon the later of expiration or
                              -----------
termination, for any reason, of (i) this Agreement or (ii) the Supply Agreement,
ASIP shall have an option for ninety (90) days from the date of such expiration
or termination to purchase any of the Equipment. The purchase price shall equal
the depreciated value of the Equipment through the option exercise date (based
upon a seven (7) year straight-line depreciation method). Upon expiration or
termination, for any reason, of (i) this Agreement or (ii) the Supply Agreement,
ASIP shall also have an option for ninety (90) days from the date of expiration
or termination to lease any of the Equipment for an annual amount equal to its
annual depreciation. Terms and conditions are identical to those specified in
this paragraph for Equipment purchase.

                          (b) Right of First Refusal.  To the extent MLTC
                              ----------------------
exercises its Right of First Refusal to purchase securities of ASIP (a
"Financing") as specified in Section 3 of the Investors' Rights Agreement dated
July 17, 2000 by and among ASIP, MLTC and the other Series A Convertible
Preferred Stock purchasers, MLTC shall be entitled to utilize the Equipment as
payment for its shares in the Financing. The purchase price shall equal the
depreciated value of the Equipment through the closing date of the Financing
(based upon a seven (7) year straight-line depreciation method) and shall be
paid by ASIP through the issuance to MLTC of the number of shares of preferred
stock of ASIP (as valued in the Financing) equal to such purchase price. In the
event the purchase price of the Equipment is (i) less than the purchase price of
MLTC's shares in the Financing, MLTC will pay the difference to ASIP in cash; or
(ii) is more than the purchase price of MLTC's shares in the Financing, ASIP
will pay the difference to MLTC in cash out of the proceeds of the Financing.

                    2.4.4  Change in Control of ASIP.  In the event there is a
                           -------------------------
Change in Control of ASIP, ASIP (or its successor entity) shall purchase the
Equipment simultaneously with the Change in Control.  The purchase price shall
equal the depreciated value of the Equipment through the date of the Change in
Control (based upon a seven (7) year straight-line depreciation method).

                                      -4-
<PAGE>

          2.5       Engineering Change Orders.  If MLTC desires to change the
                    -------------------------
Specifications as necessitated by its commercially reasonable requirements, it
will give ASIP notice of the desired changes.  The parties will negotiate in
good faith the amount of any increased cost or delay in the Development Schedule
due to any such change to the Specifications as set forth herein.  If the
request by MLTC will cause the estimated expense to exceed the limits of Section
4.1 the parties will negotiate in good faith to either increase the limit or
moderate the request.  If the request by MLTC will cause the estimated time to
completion of development of the Devices to exceed the aggregate time period for
the development of the Devices as set forth in the Development Schedule, the
parties will negotiate in good faith to either increase the time limit or
moderate the request.  If such an agreement cannot be reached, either with
respect to the increase in price or extension of time, neither party will be in
default of this Agreement.  Any changes to the Specifications will be evidenced
in writing by the mutual approval of the parties.

          2.6       Device Approval.  MLTC will have thirty (30) days following
                    ---------------
the completion of each milestone set forth in the Development Schedule to
reasonably determine whether the Devices conform to the Specifications ("Device
Approval Period").  MLTC agrees to inform ASIP in writing of any non-conformance
during the applicable Device Approval Period.  If ASIP receives a notice of non-
conformance during any Device Approval Period, ASIP and MLTC will first
cooperate in seeking a commercially reasonable way to correct the defect, which
does not require a redesign of the Devices.  If no such correction is possible
to MLTC's commercially reasonable satisfaction, ASIP and MLTC will then agree on
the design changes which are reasonably necessary to correct the defect.  This
procedure shall be repeated until each Milestone of the Devices does conform to
the Specifications.  The parties will negotiate in good faith the amount of any
increased cost or delay due to any such corrections or design changes.  If such
corrections or design changes will cause the estimated expense to exceed the
limits of Section 4.1, the parties will negotiate in good faith to either
increase the limit or moderate the request.  If such corrections or design
changes will cause the estimated time to completion of development of the
Devices to exceed the aggregate time period for the development of the Devices
as set forth in the Development Schedule, the parties will negotiate in good
faith to either increase the time limit or moderate the request.  If such an
agreement cannot be reached, either with respect to the increase in price or
extension of time, neither party will be in default of this Agreement.

          3.   MLTC License.  The MLTC Proprietary Rights are set forth on
               ------------
Schedule 1.11 attached hereto.  MLTC grants to ASIP an irrevocable,
-------------
nonexclusive, worldwide, royalty-free license to the MLTC Proprietary Rights in
perpetuity solely (a) to develop the Devices subject to the terms of this
Agreement and (b) upon the parties entering into a Supply Agreement (as defined
in Section 6) pursuant to Section 6 hereof, to manufacture and sell the Devices
to MLTC and to grant licenses to third parties to manufacture and sell the
Devices to MLTC pursuant to the Supply Agreement.

          4.   Development Expenses
               --------------------

               4.1       Payment.  MLTC will reimburse, on a monthly basis, all
                         -------
commercially reasonable Development Expenses incurred by ASIP and submitted to
MLTC during its performance under this Agreement up to an aggregate maximum of
two million five hundred thousand

                                      -5-
<PAGE>

dollars ($2,500,000). Such aggregate maximum may be re-negotiated by the parties
during the term of this Agreement, and is subject to increase pursuant to the
provisions of Sections 2.5 and 2.6 hereof.

               4.2       Expense Reports.  In order to receive such
                         ---------------
reimbursement, ASIP must first submit monthly expense reports to MLTC as
follows. ASIP shall prepare an estimate by the fifteenth (15th) day of each
month of its likely expenses in such month. MLTC will reimburse all commercially
reasonable estimates received from ASIP within fifteen (15) days of receipt.
ASIP will subsequently submit a report of the actual expenses incurred in a
month by the fifteenth (15th) day of the following month. The parties will
reconcile any underpayment or overpayment in the next scheduled subsequent
payment from MLTC to ASIP.

          5.   Devices Proprietary Rights; Ownership.
               -------------------------------------

               5.1       Joint Ownership; Assistance in Intellectual Property
                         ----------------------------------------------------
Protection.  ASIP and MLTC shall be the joint owners of all right, title and
----------
interest in the Joint Technology.  Each party agrees to assist the other party
in perfecting and enforcing its rights under this Article.  Such actions shall
include, but not be limited to, execution of assignments, applications and other
documents.

               5.2       ASIP Technology; MLTC Technology.  During the term of
                         --------------------------------
this Agreement and thereafter, ASIP will continue to own or be licensed the ASIP
Technology and is not granting MLTC any right or interest therein, or any
license thereto, and MLTC will continue to own or be licensed the MLTC
Technology and is not granting ASIP any right or interest therein, or any
license thereto, other than the license granted pursuant to Section 3 hereof.

               5.3       Use of Joint Technology During Term of Agreement.
                         ------------------------------------------------
During the term of this Agreement, MLTC and ASIP shall have the right to use the
Joint Technology solely for the purpose of developing the Devices in accordance
with the terms hereof.

               5.4       Use of Joint Technology Following Expiration or
                         -----------------------------------------------
Termination of Agreement.  Following the expiration or termination of this
------------------------
Agreement, subject to the provisions of the Supply Agreement, with respect to
the Joint Technology (a) MLTC shall have the right solely to grant licenses to
the Joint Technology to (i) third-party manufacturers to manufacture the Devices
for use by MLTC as part of the manufacture of modules, subsystems or higher-
level assemblies for sale by MLTC and (ii) third-party purchasers of such
modules, subsystems or higher-level assemblies; and (b) ASIP shall have the
right solely to (i) use the Joint Technology to manufacture the Devices, (ii)
grant licenses to the Joint Technology to third-party manufacturers to
manufacture the Devices and (iii) grant licenses to third-party purchasers of
the Devices.

               5.5       No Transfer of Joint Technology.  During the term of
                         -------------------------------
this Agreement, the Supply Agreement and thereafter, except as set forth in
Section 5.4 and 6.3 hereof, or in connection with the sale or other transfer by
a party hereunder of substantially all of such party's business or of that part
of such party's business to which the subject matter of this Agreement relates,
neither party shall transfer, convey, sell or encumber any of its rights in, to
or under the Joint Technology, nor shall it grant any person or entity any
license of any type whatsoever to

                                      -6-
<PAGE>

the Joint Technology, including, but not limited to, any license to use,
execute, reproduce, display, perform, prepare derivative works based upon the
Joint Technology, or authorize others to do any of the foregoing.

          6.   Supply Agreement.  Upon the successful completion and delivery by
               ----------------
ASIP to MLTC of the [*] prototypes as an interim step to providing the   [*]
Device as set forth on Exhibit A attached hereto, MLTC and ASIP shall enter into
a supply agreement for the [*] upon terms and conditions mutually agreed upon by
the parties. Upon the successful completion and delivery by ASIP to MLTC of the
remaining prototypes in accordance with the terms hereof and satisfaction of the
milestones specified on the Development Schedule, MLTC and ASIP shall enter into
an amended and restated supply agreement ("Supply Agreement"), which Supply
Agreement shall contain mutually agreed upon terms (including with respect to
[*] supply), including, without limitation, the following:

               6.1       Efforts; Requirements.  During the term of the Supply
                         ---------------------
Agreement, MLTC shall use good faith and reasonable commercial efforts to buy
its full requirement of Devices from ASIP.  MLTC shall purchase at least   [*]
percent ([*]%) of its requirements of Devices from ASIP for a period of one (1)
year following execution of the Supply Agreement.

               6.2       Price of Devices.  ASIP will sell the Devices to MLTC
                         ----------------
at a price equal to the price necessary for ASIP to generate a [*] percent
([*]%) gross margin with respect to each such Device sold. In the event ASIP
sells the Devices (or any other devices with substantially similar
functionalities) to a third party at more favorable or attractive terms and
conditions than the Devices are offered in the Supply Agreement, ASIP agrees to
make the Devices (or any other devices with substantially similar
functionalities) or terms and conditions available to MLTC on the same or more
favorable terms and conditions.

               6.3       Third Party Foundries.  As a means of fulfilling its
                         ---------------------
obligations under the Supply Agreement, ASIP may, with reasonable MLTC approval
and qualification, utilize one or more third party foundries in connection with
the manufacture of the Devices.  ASIP will enter into appropriate intellectual
property licensing and confidentiality agreements with any third party foundry
to permit the fabrication of the Devices and with respect to the non-disclosure
of any licensed intellectual property by such foundry to third parties.

               6.4       Sales by ASIP to Third Parties.  During the term of the
                         ------------------------------
Supply Agreement and thereafter, ASIP shall be free to sell the Devices to any
third party

               6.5       Sales by MLTC to Third Parties.  During the term of the
                         ------------------------------
Supply Agreement and thereafter, MLTC shall be free to sell the Devices only as
a part of a module, higher-level assembly or subsystem manufactured by MLTC.

          7.   Representations and Warranties of ASIP.
               --------------------------------------

               7.1       Right to License.  ASIP represents and warrants that it
                         ----------------
owns or has the right to license the ASIP Technology.

       Confidential materials omitted and filed separately with the Securities
        and Exchange Commission. Asterisks denote omissions.

                                      -7-
<PAGE>

               7.2       Development of Devices.  ASIP represents and warrants
                         ----------------------
that, to the best of its knowledge, the Devices are an original work of
authorship, prepared without reliance on any third party works.

               7.3       Ownership of Devices.  ASIP represents and warrants
                         --------------------
that except for MLTC's rights, it is the sole and exclusive owner of all right,
title and interest in the Devices and all intellectual property rights
associated with them, the Devices and the intellectual property rights
associated with them are free and clear of all encumbrances, including, without
limitation, security interests, liens, encumbrances, charges or other
restrictions.

               7.4       Non-Infringement.  ASIP represents and warrants that,
                         ----------------
to the best of its knowledge, the Devices and their production, modification and
distribution do not and will not violate the patent, copyright, trade secret and
similar rights of any third parties.

               7.5       Organization and Authority.  ASIP represents and
                         --------------------------
warrants that it is a corporation duly organized and validly existing under the
laws of the State of Delaware and that the execution, delivery and performance
of this Agreement has been duly and validly authorized by it, and all necessary
corporate action has been taken to make this Agreement legal, valid and binding
agreements of ASIP in accordance with their respective terms.

               7.6       LIMITATION. ASIP MAKES NO WARRANTY OF MERCHANTABILITY
                         ----------
OR FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER WARRANTY, EXPRESS OR IMPLIED,
WITH RESPECT TO THE DEVICES, THEIR DEVELOPMENT, PRODUCTION, MODIFICATION, OR
DISTRIBUTION.

          8.   Representations and Warranties of MLTC.
               --------------------------------------

               8.1  Right and License.  MLTC represents and warrants that it
                    -----------------
owns or has the right to license the MLTC Technology.

               8.2  Non-Infringement.  MLTC represents and warrants that, to the
                    ----------------
best of its knowledge, the MLTC Technology does not and will not violate the
patent, copyright, trade secret and similar rights of any third parties.

               8.3  Organization and Authority.  MLTC represents and warrants
                    --------------------------
that it is a corporation duly organized and validly existing under the laws of
the State of California and that the execution, delivery and performance of this
Agreement has been duly and validly authorized by it, and all necessary
corporate action has been taken to make this Agreement legal, valid and binding
agreements of MLTC in accordance with their respective terms.

          9.   Indemnification; Limitations of Liability and Time to Sue.
               ---------------------------------------------------------

                    9.1.1  Indemnification.  MLTC will indemnify and hold ASIP,
                           ---------------
its employees, officers, directors, agents, representatives, sublicensees and
customers harmless against any claim, action or proceeding, threatened or
pending, alleging that the use of the MLTC Proprietary Rights in the
development, manufacture, sale or use of the Devices infringes or is alleged to
infringe the rights of any third party in any jurisdiction.  ASIP agrees to
notify

                                      -8-
<PAGE>

MLTC in writing promptly of any such claim, suit or proceeding. ASIP will
reasonably assist MLTC in such defense, and MLTC may at its sole cost and
expense upon written notice to ASIP within a reasonable time following receipt
of notice of such claim, suit or proceeding assume the defense thereof, at which
time it shall no longer be responsible for the fees and expenses of ASIP in
defending such action. Similarly, ASIP will indemnify and hold MLTC, its
employees, officers, directors, agents, representatives and sublicensees, and
customers harmless against any claim, action or proceeding, threatened or
pending, alleging that the use of the ASIP Proprietary Rights in the
development, manufacture, sale or use of the Devices infringes or is alleged to
infringe the rights of any third party in any jurisdiction. MLTC agrees to
notify ASIP promptly of any such claim, suit or proceeding. MLTC will reasonably
assist ASIP in such defense and ASIP may at its sole cost and expense upon
written notice to MLTC within a reasonable time following receipt of notice of
such claim, suit or proceeding assume the defense thereof, at which time it
shall no longer be responsible for the fees and expenses of MLTC in defending
such action. No indemnifying party shall settle any such claim, suit or
proceeding hereunder without the consent of the indemnified party, which consent
shall not be unreasonably withheld.

               9.2  Limitations of Damages.  NEITHER PARTY WILL BE LIABLE IN ANY
                    ----------------------
MANNER FOR ANY CONSEQUENTIAL, SPECIAL, INDIRECT, EXEMPLARY OR INCIDENTAL DAMAGES
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, EVEN IF INFORMED OF THE
POSSIBILITY THEREOF IN ADVANCE INCLUDING, BUT NOT LIMITED TO, LOST PROFITS,
WHETHER ARISING OUT OF CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, RESULTING
FROM OR RELATED TO THIS AGREEMENT.

               9.3  Statute of Limitations.  NO ACTION MAY BE BROUGHT OR
                    ----------------------
ARBITRATION DEMANDED BY EITHER PARTY ARISING UNDER THIS AGREEMENT AT ANY TIME
MORE THAN TWENTY FOUR (24) MONTHS AFTER THE PARTY BRINGING SUCH ACTION BECOMES
AWARE OF, OR REASONABLY SHOULD HAVE BECOME AWARE OF, THE FACTS THAT OCCURRED
GIVING RISE TO THE CAUSE OF ACTION.

          10.  Confidentiality.
               ---------------

               10.1 Confidentiality Obligations.  Each party acknowledges that
                    ---------------------------
in the course of the performance of this Agreement, it may obtain the
Confidential Information of the other party.  The Receiving Party (as defined in
Section 1.3) shall, at all times, both during the term of this Agreement and
thereafter for a period of five (5) years, keep in confidence and trust all of
the Disclosing Party's (as defined in Section 1.3) Confidential Information
received by it.  The Receiving Party shall not use the Confidential Information
of the Disclosing Party other than as expressly permitted under the terms of
this Agreement, unless otherwise expressly agreed to writing by the Disclosing
Party.  The Receiving Party shall take all reasonable steps to prevent
unauthorized disclosure or use of the Disclosing Party's Confidential
Information and to prevent it from falling into the public domain or into the
possession of unauthorized persons.  The Receiving Party shall not disclose
Confidential Information of the Disclosing Party to any person or entity other
than its officers, employees and consultants who need access to such
Confidential Information in order to effect the intent of this Agreement and who
have entered into written confidentiality agreements with the Receiving Party
which protects the Confidential Information

                                      -9-
<PAGE>

of the Disclosing Party. The Receiving Party shall immediately give notice to
the Disclosing Party of any unauthorized use or disclosure of Disclosing Party's
Confidential Information. The Receiving Party agrees to assist the Disclosing
Party to remedy such unauthorized use or disclosure of its Confidential
Information. These obligations shall not apply to the extent that Confidential
Information includes information which:

                    10.1.1  is already known to the Receiving Party at the time
of disclosure, which knowledge the Receiving Party shall have the burden of
proving;

                    10.1.2  is, or, through no act or failure to act of the
Receiving Party, becomes publicly known;

                    10.1.3  is received by the Receiving Party from a third
party without restriction on disclosure;

                    10.1.4  is independently developed by the Receiving Party
without reference to the Confidential Information of the Disclosing Party, which
independent development the Receiving Party will have the burden of proving;

                    10.1.5  is approved for release by written authorization of
the Disclosing Party; or

                    10.1.6  is required to be disclosed by a government agency
to further the objectives of this Agreement or by a proper order of a court of
competent jurisdiction; provided, however that the Receiving Party will use its
best efforts to minimize such disclosure and will consult with and assist the
Disclosing Party, at the Disclosing Party's request and cost, in obtaining a
protective order prior to such disclosure.

          11.  Joining Employees.  During the term of this Agreement and for a
               -----------------
period of one (1) year thereafter, each party agrees that it shall not, directly
or indirectly, (a) hire any employee of the other party or solicit, induce or
entice any employee of the other party to leave such employment or cause anyone
else to do so, or (b) except with respect to serving on the board of directors
of the other party, or holding or making an investment in the other party, enter
into business or work with any current employee of the other party in any
business, partnership, limited liability company, firm, corporation or other
entity then in competition with such party as long as such employee is still
employed by such other party.

          12.  Injunctive Relief.  Each party agrees that any violation of the
               -----------------
terms and conditions of Section 10 or Section 11 by either party would cause the
other party irreparable injury for which it would have no adequate remedy at
law.  Consequently, the parties agree that the non-breaching party shall be
entitled to temporary and permanent restraining orders, preliminary injunctions
and permanent injunctions to enforce such Sections without the necessity of
proving actual damages in connection therewith.  This provision with respect to
injunctive relief shall not, however, diminish either party's right to claim and
recover damages or enforce any of its other legal and/or equitable rights or
defenses.

                                      -10-
<PAGE>

         13.  Termination.
              -----------

              13.1  Term.  This Agreement will be in effect for twenty-four (24)
                    ----
months commencing from the Effective Date, unless terminated earlier by either
party pursuant to the provisions in this Section; provided, however, that all
rights and obligations set forth in Sections 2.4.3(a), 2.4.3(b), 2.4.4, 5, 7, 8,
9, 10, 11, 12 and 13 and Sections 14.8 and 14.14 shall survive termination of
this Agreement.

              13.2  Events of Default by ASIP.  MLTC will have the right to
                    -------------------------
terminate this Agreement and its further obligations hereunder upon the
occurrence of any of the following events of default (subject to ASIP's ability
to cure or remedy such event as described in Section 13.4):

                    13.2.1  ASIP is involved in any voluntary or involuntary
bankruptcy proceeding or any other proceeding concerning insolvency,
dissolution, cessation of operations, reorganization of indebtedness or the like
and the proceeding is not terminated within sixty (60) days;

                    13.2.2  ASIP becomes insolvent or unable to pay its debts as
they mature in the ordinary course of business or makes an assignment for the
benefit of its creditors; or

                    13.2.3  ASIP is in material default of any provision of this
Agreement.

              13.3  Events of Default by MLTC.  ASIP will have the right to
                    -------------------------
terminate this Agreement and its further obligations hereunder upon the
occurrence of any of the following events of default (subject to MLTC's ability
to cure or remedy such event as described in Section 13.4):

                    13.3.1  MLTC becomes involved in any voluntary or
involuntary bankruptcy proceeding or any other proceeding concerning insolvency,
dissolution, cessation of operations, reorganization of indebtedness or the like
and the proceeding is not terminated within sixty (60) days;

                    13.3.2  MLTC becomes insolvent or unable to pay its debts as
they mature in the ordinary course of business or makes an assignment for the
benefit of its creditors; or

                    13.3.3  MLTC is in material default of any provision of this
Agreement.

              13.4  Right to Cure Event of Default.  Upon the occurrence of any
                    ------------------------------
event of default entitling a party to terminate this Agreement, the non-
defaulting party may send notice of default, specifying the nature of the
default, to the other party.  The non-defaulting party will permit thirty (30)
days following the date of such notice to enable the other party to cure the
problem to the non-defaulting party's reasonable satisfaction.  Failure to cure
the problem will result in termination without further notice by the non-
defaulting party, unless such non-defaulting party extends the cure period by
written notice or withdraws the default notice.

                                      -11-
<PAGE>

     14.  General Provisions.
          ------------------

          14.1      Notice.  Any notice provided for or permitted under this
                    ------
Agreement will be treated as having been given when (a) delivered personally,
(b) sent by confirmed telex or telecopy, (c) sent by commercial overnight
courier with written verification of receipt, or (d) mailed postage prepaid by
certified or registered mail, return receipt requested, to the party to be
notified, at the address set forth below, or at such other place of which the
other party has been notified in accordance with the provisions of this Section,
provided however, e-mail shall be the preferred method of communication between
the parties for normal day-to-day operations in the ordinary course of business,
provided further, however, that e-mail shall not constitute the giving or
receiving of valid notice under this Agreement.

          If to ASIP: milind.gokhale@asipinc.com
                      155 Pierce Street
                      Somerset, New Jersey 08873
                      Attn.:  Milind Gokhale

          If to MLTC: rich@mltc.com
                      300 Atrium Drive, 2nd Floor
                      Somerset, New Jersey 08873
                      Attn.:  Richard N. Nottenburg
          Such notice will be treated as having been received upon the earlier
of actual receipt or five (5) days after posting.

          14.2      Waiver.  No term or provision hereof will be considered
                    ------
waived by either party, and no breach excused by either party, unless such
waiver or consent is in writing signed on behalf of the party against whom the
waiver is asserted.  No consent by either party to, or waiver of, a breach by
either party, whether express or implied, will constitute a consent to, waiver
of, or excuse of any other, different, or subsequent breach by either party.

          14.3      Entire Agreement.  This Agreement, including all exhibits
                    ----------------
and schedules to this Agreement, constitutes the entire agreement between the
parties relating to this subject matter and supersedes all prior or simultaneous
representations, discussions, negotiations, and agreements, whether written or
oral.

          14.4      Severability.  If any part of this Agreement is found
                    ------------
invalid or unenforceable, the remainder of this Agreement will remain in full
force.
          14.5      Amendment.  This Agreement may be amended or supplemented
                    ---------
only by a writing that is signed by duly authorized representatives of both
parties.

          14.6      Counterparts.  This Agreement may be executed simultaneously
                    ------------
in two or more counterparts, each of which will be considered an original, but
all of which together will constitute one and the same instrument.

          14.7      Section Headings.  The Section headings contained herein are
                    ----------------
for convenience of reference only and will not be considered as substantive
parts of this Agreement.

                                      -12-
<PAGE>

The use of the singular or plural form will include the other form and the use
of the masculine, feminine or neuter gender will include the other genders.

          14.8      Choice of Law.  This Agreement will be governed by and
                    -------------
construed in accordance with the laws of the United States and the State of
Delaware as applied to agreements entered into and to be performed entirely
within Delaware.  The parties agree that the United Nations Convention on
Contracts for the International Sale of Goods (1980) is specifically excluded
from application to this Agreement.

          14.9      Choice of Forum.  Any proceeding to enforce or to resolve
                    ---------------
disputes relating to this Agreement shall be brought before a court of competent
jurisdiction in the United States.  In any proceedings, no party shall assert
that such a court lacks jurisdiction over it or the subject matter of the
proceeding.

          14.10     Force Majeure.  Except for the payment of money, neither
                    -------------
party will be liable for any failure or delay in performance under this
Agreement which might be due, in whole or in part, directly or indirectly, to
any contingency, delay, failure, or cause of, any nature beyond the reasonable
control of such party.  Such causes include, without in any way limiting the
generality of the foregoing, fire, explosion, earthquake, storm, flood or other
weather, unavailability of necessary utilities or raw materials, strike,
lockout, activities of a combination of workmen or other labor difficulties,
war, insurrection, riot, act of God or the public enemy, law, act, order, export
control regulation, proclamation, decree, regulation, ordinance, or instructions
of Government or other public authorities, or judgment or decree of a court of
competent jurisdiction (not arising out of breach by such party of this
Agreement).  In the event of the happening of such a cause, the party whose
performance is so affected will give prompt, written notice to the other party,
stating the period of time the same is expected to continue.  Such delay will
not be excused under this Section for more than one hundred eighty (180) days.

          14.11     Assignment.  Neither party may assign any rights or delegate
                    ----------
any duties under this Agreement (other than the right to receive payments)
without the other party's prior written consent, and any attempt to do so
without that consent will be void, unless the assignment is part of a sale or
other transfer of substantially all of the assignor's business, or of that part
of the assignor's business to which the subject matter of this Agreement
relates.  This Agreement will bind and inure to the benefit of the parties and
their respective successors and permitted assigns.

          14.12     Relationship of the Parties.  The parties to this Agreement
                    ---------------------------
are independent contractors.  There is no relationship of agency, partnership,
joint venture, employment, or franchise between the parties.  Neither party has
the authority to bind the other or to incur any obligation on its behalf.

          14.13     Export Control Regulations.  Neither party shall export,
                    --------------------------
directly or indirectly, any products or technical data acquired or to be
provided under this Agreement, or the direct product of any such technical data,
to any country for which the United States export statutes and regulations, at
the time of export, require an export license or other government approval,
without first obtaining such license or approval.

                                      -13-
<PAGE>

          14.14     Attorneys' Fees.  In the event of any action between the
                    ---------------
parties hereto for enforcement of any of the terms or conditions of this
Agreement, the prevailing party in such action shall be entitled to recover its
reasonable costs and expenses, including, without limitation, attorneys' fees.

                  [Remainder of page left intentionally blank]

                                      -14-
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date indicated below:

<TABLE>
<CAPTION>
ASIP, INC.                              MULTILINK TECHNOLOGY CORPORATION

<S>                                     <C>
By: /s/ Milind Gokhale                  By: /s/ Richard N. Nottenburg

Typed Name:  Milind Gokhale             Typed Name:  Richard N. Nottenburg

Title:  President                       Title:  President and CEO

Date:  May 25, 2001                     Date:  May 25, 2001
</TABLE>

                                      -15-
<PAGE>

                             SCHEDULES AND EXHIBITS
                             ----------------------

Schedule 1.1   ASIP Technology

Schedule 1.11  MLTC Technology

Exhibit A      Devices and Deliverables

Exhibit B      Consigned Equipment

                            SCHEDULES AND EXHIBITS

                                      -1-
<PAGE>

                                  SCHEDULE 1.1
                                  ------------
                                ASIP Technology
                                ---------------

Patent applications filed and awarded:

     1. "Photonic Integration Using a Twin Waveguide Structure," U.S. Patent No.
         5,859,866

     2. "Twin Waveguide Based Design for Phtonic Integrated Circuits,"
         Provisonal U.S. Patent filed June 24, 1998, Serial No. 337,785, U.S.
         Regular Patent filed June 22, 1999, PCT Serial No. WO 99/67665

     3. "Photonic integrated detector having plurality of asymmetric
         waveguides," Provisional U.S. Patent filed May 12, 2000 Serial No.
         203,846, U.S. Regular Patent filed November 21, 2000, Serial No.
         09/717,851

     4. "Asymmetric Waveguide electroabsorption-modulated laser," PUAS-0013,
         U.S. Provisional Patent filed January 19, 2001. Final patent in
         preparation.

     Others:

         1. Princeton University Docket 96-1251-1: "Method and Apparatus For
            Active Alignment fo Semiconductor Optical Waveguides".

         2. Design and calculated performance characteristics of     [*]
            based     [*] integrated with     [*].

         3. Design and calculate performance characteristics of     [*]
            based     [*]     and [*] integrated with [*].

         4. Design methodology and processing know-how for making     [*]
            based     [*]    . This includes existing wafer designs, taper
            designs, and know-how of various fabrication processes to make such
            [*].

         5. Various inventions and device configurations and results that pre-
            date this Agreement and are documented in laboratory notebooks of
            ASIP employees.

       Confidential materials omitted and filed separately with the Securities
        and Exchange Commission. Asterisks denote omissions.

                            SCHEDULES AND EXHIBITS

                                      -1-
<PAGE>

                                 SCHEDULE 1.11
                                 -------------
                                MLTC Technology
                                ---------------

      1. Radio frequency (RF) circuit design and circuit design of  high speed
      telecommunications circuits.

      2. 40 GHz optoelectronic test fixture, MLTC document # 050-0005-001.

      3. Semiconductor manufacturing processes and process control for
      integrated circuit technologies including GaAs, InP and SiGe material
      systems.

      4. Manufacturing processes and assembly techniques for high speed
      electronic modules.

      5. Design, modeling, characterization and manufacturing of high speed
      electronic packages.

      6. High speed amplifier design techniques and circuits that are the
      property of MLTC, whether developed and produced internally or provided
      by another entity.

      7. RF test and measurement techniques and apparatus for characterizing
      optoelectronic devices, components and modules up to 50 GHz.

      8. Time domain test methodologies and approaches for characterizing
      optoelectronic devices, components and modules up to 50 Gb/s.

      9. Fiber optic probe development for wafer level measurements.

     10. High speed, on-wafer test methodologies and techniques for electronic
      and optoelectronic integrated circuits.

                            SCHEDULES AND EXHIBITS

                                      -1-
<PAGE>

                                   EXHIBIT A
                                   ---------
                            Devices and Deliverables
                            ------------------------
Devices:
--------

     . Device A)     [*]     40Gb/s     [*]     plus     [*]     on submount

     . Device B)     [*]     40Gb/s     [*]     on submount

Deliverables:
-------------

ASIP will provide to MLTC:

     . [*] engineering sample units of [*] and [*] qualified production units of
       [*]

     . [*] engineering sample units of [*] and [*] qualified production units of
       [*]

     . [*] engineering sample units of [*] as an interim step to providing
       [*]

       Confidential materials omitted and filed separately with the Securities
        and Exchange Commission. Asterisks denote omissions.

                            SCHEDULES AND EXHIBITS

                                      -1-
<PAGE>

                                   EXHIBIT B
                                   ---------
                              Consigned Equipment
                              -------------------

The  [*]  plus accompanying equipment necessary to manufacture devices including
but not limited to fiber alignment equipment, not to exceed $3,500,000

       Confidential materials omitted and filed separately with the Securities
        and Exchange Commission. Asterisks denote omissions.

                                   EXHIBIT B

                                      -1-

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