Document:

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                                                                   EXHIBIT 10.10

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

CUSTOM SALES AGREEMENT
BASE AGREEMENT

International Business Machines Corporation                       281 Winter St.
                                                               Waltham, MA 02254
AGREEMENT NO. 000147
CUSTOMER:   Redstone Communications, Inc.
            5 Carlisle Road
            Westford, MA 01896
            USA
This Custom Sales Agreement, which consists of this Base Agreement and Statement
of Work Attachments, shall be referred to as the "Agreement". The term of this
Agreement commences on January 1, 1999 and expires on December 31, 2001.

By signing below, the parties each agree to be bound by the terms and conditions
of this Agreement and the initial Statement of Work, Attachment No. 1, and no
additional signature on the initial Statement of Work is required. Subsequent
Statement of Work Attachments under this Agreement must be signed by the parties
to become effective.

Upon signature by both parties, it is agreed this Agreement constitutes the
complete and exclusive agreement between them superseding any prior agreements,
written or oral, relating to the subject matter notwithstanding anything
contained in any document issued by either party. This Agreement may not be
amended or modified except by a written amendment signed by both parties.

The parties expressly acknowledge that they have received and are in possession
of a copy of any referenced item which is not physically attached to the
Agreement and any such item will be treated as if attached.

ACCEPTED AND AGREED TO:

REDSTONE COMMUNICATIONS, INC.             INTERNATIONAL BUSINESS MACHINES
                                          CORPORATION

BY: /s/ Christopher Lawler                BY: /s/ Peter Hansen
   ----------------------------              -----------------------------------
NAME: Christopher Lawler                  NAME: Peter Hansen
TITLE: VP of Engineering                  TITLE: VP North America Sales, IBM MD

DATE:         12/3/98                     DATE:            12/3/98
     ------------------------------            ---------------------------------

Base Agreement
Custom Sales Agreement No. 000147

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1.0  DEFINITIONS

Capitalized terms in this Agreement have the following meanings. An Attachment
may define additional terms; however, those terms apply only to that Attachment.

1.1  "Item" shall mean any part, specification, design, document, report, data
or the like which Customer delivers to IBM under this Agreement.
1.2  "Product" shall mean production units to be sold or purchased under this
Agreement. Products shall not include Prototypes.
1.3  "Prototype" shall mean a preliminary version of a Product which may or may
not be functional, is intended for internal use and testing and not for resale,
and is not suitable for production in commercial quantities.
1.4  "Purchase Order Lead Time" shall mean the required minimum amount of time
between IBM's receipt of the purchase order issued by Customer and the requested
shipment date necessary to accommodate manufacturing cycle time.
1.5  "Related Company" of a party hereunder shall mean a corporation, company or
other entity which controls or is controlled by such party or by another Related
Company of such party, where control means ownership or control, direct or
indirect, of more than fifty (50) percent of: (i) the outstanding voting shares
or securities (representing the right to vote for the election of directors or
managing authority), or (ii) the ownership interests representing the right to
make decisions for such a corporation, company or other entity (as the case may
be in partnership, joint venture or unincorporated association having no
outstanding shares or securities). However, any such corporation, company or
other entity shall be deemed to be a Related Company of such party only so long
as such ownership or control exists.
1.6  "Service" shall mean any manufacturing activity or design, or engineering
work IBM performs.
1.7  "Shipment Date" shall mean IBM's estimated date of shipment.

2.0  AGREEMENT STRUCTURE
2.1  This Agreement consists of: (i) the Base Agreement which defines the basic
terms and conditions of the relationship between the parties; and (ii)
Attachments which specify the details of a specific work task. An Attachment may
include additional or differing terms and conditions, however such terms and
conditions apply only to that Attachment. Attachments also include any
specification documents agreed to by the parties applicable to the specific work
under that Attachment.
2.2  If there is a conflict among the terms and conditions of the various
documents, Attachment terms and conditions govern.
2.3  Purchase orders and acknowledgements will be used to convey information
only and any terms and conditions on those are void and replaced by this
Agreement.
2.4  Either party may include its Related Companies under this Agreement by
written agreement with the other party.

3.0  ORDER AND DELIVERY
3.1  Customer shall order Products and Services by issuing written purchase
orders, which are subject to acceptance by IBM. Purchase orders for Products
must be received by IBM in advance, with at least the Purchase Order Lead Time
specified in the applicable Attachment.

Base Agreement
Custom Sales Agreement No. 000147

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3.2  Products will be shipped to Customer FOB plant of manufacture, except for
Products shipped outside the United States which will be shipped EXWORKS (as
defined in ICC INCOTERMS 1990).
3.3  Title to the Products and risk of loss shall pass to the Customer upon
delivery to the carrier for shipment to the Customer.

4.0  CANCELLATION AND RESCHEDULING
4.1  If IBM's supply of the Product and/or Services ordered hereunder becomes
constrained, IBM will reduce the quantities of Products and/or Services to be
supplied to the Customer in proportion to the reduction in quantities of
products and/or services of the same technology or utilizing the same
manufacturing process to be supplied to satisfy others. Receipt of such
allocated supply and later delivery of all undelivered ordered quantities shall
constitute Customer's exclusive remedy in the event of such a supply constraint.
4.2  Customer may cancel or reschedule an order for Products and/or Services
only upon prior written notice to IBM. In the event of a cancellation or
reschedule which exceeds the rescheduling rights set forth in an applicable
Attachment, Customer shall pay the quoted price for Products and/or Services
delivered or ready for shipment and the cancellation charges set forth in the
applicable Attachment.
4.3  Customer agrees that if Customer decreases the total quantity of an order
that has a unit price based on an agreed to quantity Customer will pay an
applicable higher unit price for previous shipments and for new shipments.

5.0  PAYMENT
5.1  Prices for Products and Services shall be as set forth in an applicable
Attachment. IBM shall invoice Customer after the Products have been shipped or
the Services provided. Payment by the Customer will be due within thirty (30)
days from the date of invoice. Late payment of invoices will be assessed a
charge equal to the lesser of one and one-half percent (1.5%) per month or the
statutorily maximum rate of interest in accordance with the laws of the State of
New York. In addition, if Customer's account balance exceeds its credit limit
with IBM, or becomes delinquent, IBM may stop shipments to Customer or ship to
Customer on a prepaid basis until the account is current again.

6.0  TERMINATION
6.1  If either party materially breaches a term of this Base Agreement or an
Attachment, the other party may, at its option, terminate this Agreement or any
or all Attachments provided the party in breach is given written notice and
fails to cure such breach within 30 days or immediately in the event of (i)
insolvency, dissolution or liquidation by or against either party, (ii) any
assignment of either party's assets for the benefit of creditors, (iii) any act
or omission of an act by a party demonstrating its inability to pay debts
generally as they become due (iv) any transfer of substantially all of either
party's business or assets to a third party, or (v) if IBM has a reasonable
basis to believe any of the Items infringe intellectual property rights.
6.2  If IBM terminates this Agreement or an Attachment, IBM shall be entitled to
treat any or all applicable outstanding purchase orders as if cancelled by
Customer and Customer shall pay (i) all applicable IBM procurement costs, (ii)
the quoted price applicable for any affected Products and/or Services delivered
or ready for shipment, and (iii) the cancellation charges set forth in the
applicable Attachment or Attachments. Monies owing IBM shall become immediately
due and payable.

Base Agreement
Custom Sales Agreement No. 000147

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6.3  If Customer terminates this Agreement or an Attachment, IBM will fill all
applicable previously accepted purchase orders for Products, but IBM shall not
be obligated to accept further applicable purchase orders after receiving
notice.
6.4  This Base Agreement will continue after its termination or expiration with
respect to any Attachments already in place until they expire, are terminated or
completed. Provided that no monies are due IBM, applicable Items shall be
disposed of as directed by Customer in writing at Customer's expense after a
termination or expiration.

7.0  CONFIDENTIAL INFORMATION
7.1  With the exception of the terms and conditions of this Agreement, no
information exchanged between the parties shall be considered confidential
and/or proprietary to either party, or to any third party except as may be
specified pursuant to Section 7.2 below.
7.2  In the event IBM or Customer needs to disclose specific confidential
information to the other in order for IBM to furnish Products and/or Services
hereunder, such information shall be disclosed only pursuant to the terms of a
confidential information exchange agreement executed by the parties.

8.0  LICENSE
8.1  No license, immunity or other right is granted herein to Customer whether
directly or by implication, estoppel or otherwise, with respect to any patent,
trademark, copyright, mask work, trade secret or other intellectual property
right of IBM with the exception of Customer's right to use or resell any Product
patented and sold by IBM to Customer pursuant to this Agreement.

9.0  TRADEMARK
9.1  Nothing in this Agreement grants either party any rights to use the other
party's trademarks or trade names, directly or indirectly, in connection with
any product, service, promotion, or to make any publication or publicity without
prior written approval of the other party or owner.

10.0 INTELLECTUAL PROPERTY AND INDEMNIFICATION
10.1 IBM agrees to indemnify Customer against damages assessed against Customer
as a result of a final judgment of a court of competent jurisdiction holding
that any Product sold or Service provided by IBM to Customer hereunder infringes
a patent or copyright of a third party in any country in which IBM sells or
provides similar products or services, up to the amount paid by Customer for
Products or Services provided hereunder; PROVIDED THAT Customer (1) promptly
notifies IBM, in writing, of the charge of infringement; (2) allows IBM to
control and cooperates with IBM in the defense and any related settlement
action; and (3) upon the written request of IBM (a) allows IBM to modify or
replace the Product, or (b) returns the Product to IBM for a credit equal to
Customer's purchase price for the Product, provided Customer has followed
generally accepted accounting principles. IBM has no obligation regarding any
claim of infringement to the extent such claim is based on any of the following:
(1) Customer's modification of a Product; (2) the combination, operation, or use
of a Product with any product, data, or apparatus that IBM did not provide; (3)
infringement by a non-IBM Product alone, as opposed to its combination as part
of a system of Products that IBM provides; or (4) IBM's manufacture or
modification of a Product in compliance with Customer's specifications. Customer
agrees to indemnify IBM against all damages and costs resulting from such a
claim of infringement. The foregoing states the entire obligation and exclusive
remedy of

Base Agreement
Custom Sales Agreement No. 000147

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IBM and Customer regarding any claim of patent or copyright infringement
relating to any Product sold or Service provided hereunder.
10.2 Customer warrants that it is the originator, rightful owner or licensee of
all Items supplied to IBM hereunder and that to the best of Customer's knowledge
no part of such Items infringes any intellectual property rights.

11.0 LIMITATION OF LIABILITY
11.1 Neither party shall be entitled to indirect, incidental, consequential or
punitive damages, including lost profits based on any breach or default of the
other party, including those arising from infringement or alleged infringement
of any patent, trademark, copyright, mask work, or any other intellectual
property.
11.2 Except for nonpayment, no action, regardless of form, arising from this
Agreement may be brought by either party more than one (1) year after the cause
of action has arisen. IBM's liability for any and all causes of action shall be
limited in the aggregate to the greater of: (1) $50,000.00 or (2) the applicable
IBM price to Customer for the specific Products and/or Services that caused the
damages or that are the subject matter of, or directly related to, the cause of
action.
11.3 The limitation of Section 11.2 does not apply to: (1) payments referred to
in Section 10.1 and (2) damages for bodily injury (including death) and damage
to real property and tangible personal property caused by IBM's negligence.
11.4 Under no circumstances is IBM liable for any of the following: (A) third
party claims against Customer for losses or damages other than those in 11.3(l)
and (2) above; or (B) loss of, or damage to, Customer's or another parties'
records or data; or (C) when the Products and/or Services are used in
conjunction with medical devices or nuclear materials.

12.0 WARRANTIES
12.1 IBM warrants all Products delivered hereunder to be free from defects in
material and workmanship for a period of thirty (30) days from the date of
shipment unless otherwise stated in an Attachment applicable to such Products.
Customer acknowledges that the functionality of Products is contingent on
Customer's designs and, therefore, such warranty does not apply to the
functionality of Products fabricated under this Agreement. All Prototypes are
provided "As Is" without warranty of any kind.
12.2 THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS OR USAGE
FOR PARTICULAR PURPOSE.
12.3 No course of dealing, course of performance, usage of trade, or description
of Product, Prototype or Service shall be deemed to establish a warranty,
express or implied.
12.4 If Customer claims that any Products and any incidental Services are
nonconforming, Customer shall (1) promptly notify IBM, in writing, of the basis
for such nonconformity; (2) follow IBM's instructions for the return of the
Products; and (3) return such Products freight collect to IBM's designated
facility. If IBM determines the Products are nonconforming, IBM will, at its
option, repair or replace the defective Products, or issue a credit or rebate
for the purchase price.
12.5 IBM's sole liability and Customer's sole remedy for breach of warranty
shall be limited as stated in this Section 12.

13.0 TAXES

Base Agreement
Custom Sales Agreement No. 000147

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13.1 IBM shall bill Customer for all applicable sales, use and gross receipts
taxes, unless Customer provides IBM with appropriate exemption certificates.

14.0 NOTICES
14.1 All communications and notices between the parties concerning this
Agreement shall be given to the appropriate individual listed in the applicable
Attachment and shall be deemed sufficiently made on the date if given by
personal service, sent via mail, facsimile or electronic data interchange.
Communication by facsimile or electronic data interchange is acceptable as a
"writing". The autographs of representatives of the parties, as received by
facsimile or electronic data interchange, shall constitute "original"
signatures.

15.0 INDEPENDENCE OF ACTION
15.1 Each party agrees that this Agreement will not restrict the right of either
party to enter into agreements with other parties for same or similar work, or
to make, have made, use, sell, buy, develop, market or otherwise transfer any
products or services, now or in the future, so long as confidential information
is not disclosed. IBM shall not sell, market or otherwise transfer to any third
party any Products using the trademark or trade name of Customer without prior
written consent.

16.0 UTILIZATION OF PRODUCTS
16.1 Customer represents that all Products purchased under this Agreement will
be: (1) incorporated into and made a part of Customer products; or (2) combined
with Customer products for sale or lease as a Customer system; or (3) sold or
leased in incidental additional quantities for sale or lease directly to an
unaffiliated third party in conjunction with an installed Customer system.

17.0 GENERAL
17.1 Neither party shall be responsible for failure to fulfill its obligations
under this Agreement due to fire, flood, war or other such cause beyond its
reasonable control and without its fault or negligence (excluding labor disputes
or payment obligations) provided it promptly notifies the other party.
17.2 The substantive laws of the State of New York govern this Agreement without
regard to conflict of law principles. Both parties agree to waive their right to
a jury trial in any dispute arising out of this Agreement and agree any action
concerning this Agreement shall be brought in a court of competent jurisdiction
in the State of New York. The prevailing party in any legal action hereunder
shall be entitled to reimbursement by the other party for its expenses,
including without limitation reasonable attorney's fees.
17.3 Customer may not assign its rights or obligations without the prior written
consent of IBM.
17.4 No delay or failure by either party to act in the event of a breach or
default hereunder shall be construed as a waiver of that or any subsequent
breach or default of any provision of this Agreement.
17.5 If any part, term or provision of this Agreement is declared unlawful or
unenforceable, by judicial determination or performance, the remainder of this
Agreement shall remain in full force and effect.

Base Agreement
Custom Sales Agreement No. 000147

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17.6 Any terms of this Agreement which by their nature extend beyond expiration
or termination of this Agreement shall remain in effect until fulfilled and
shall bind the parties and their legal representatives, successors, heirs and
assigns.
17.7 The headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.
17.8 Each party will comply, at its own expense, with all applicable federal,
state and local laws, regulations and ordinances including, but not limited to,
the regulations of the U.S. Government relating to export and re-export.
Customer agrees that it is responsible for obtaining required government
documents and approvals prior to export and re-export of any commodity, machine,
software or technical data.
17.9 The UN Convention on Contracts for the International Sale of Goods shall
not apply to this Agreement.
17.10 Press releases and other like publicity, advertising or promotional
material which mention the other party by name, this Agreement or any term
hereof shall be agreed upon by both parties in writing prior to any release.
After the execution of this Agreement and upon request of Customer, IBM will
review Customer's press release to determine in writing whether it will agree to
the release.

Base Agreement
Custom Sales Agreement No. 000147

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

                              ASIC ATTACHMENT NO. 1
                        CUSTOM SALES AGREEMENT NO. 000147

The following Statement of Work shall be incorporated into Custom Sales
Agreement No. 000147 as Attachment No. 1 effective on January 1, 1999.
Attachments are governed by the terms and conditions of the Base Agreement.

                                STATEMENT OF WORK
                             ASIC PRODUCT TASK ORDER

     DEFINITIONS

     "ASIC(S)" shall mean application specific integrated circuits. "
     AT SHIPMENT OF PROTOTYPES " ("ASP") shall mean the date of shipment of
     Prototypes to Customer.
     "IBM DELIVERABLES" shall mean the information, materials and tools supplied
     to Customer by IBM, as set forth in Part B of this Attachment, including,
     without limitation, IBM Design Kits, ASIC tool kits, and Prototype devices.
     "IBM DESIGN KITS" shall mean any IBM computer aided design software and
     data (including libraries) provided to Customer and supported by IBM for
     the purpose of designing or testing ASIC designs, as updated and enhanced
     from time to time. IBM licenses any IBM Design Kits to Customer under the
     terms and conditions of the IBM Design Kit License Agreement.
     "INITIAL ASIC DESIGN REVIEW CHECKLIST" ("IDR") shall mean a report in form
     and content as regularly used by IBM to make a preliminary assessment of
     the feasibility of Customer's proposed Product design.
     "MILESTONES" shall mean completion of the criteria specified in the (i)
     initial design review ("IDR Milestone"), (ii) pre-layout and timing
     analysis ("RTL Milestone"), and (iii) the release to manufacturing ("RTM
     Milestone") stages of work and the NRE payment milestones ("Payment
     Milestones") set forth in Section 7.3 of this SOW.
     "NRE" shall mean non-recurring engineering Services.
     "PRODUCT SPECIFICATIONS" shall mean those specifications for a Product,
     including but not limited to, post-layout EDIF and timing requirements
     (including clock skew requirements), a statement of post-layout test
     coverage, and I/O placement that are set forth in a Product's RTM expressly
     or by specific incorporation.
     "PROTOTYPE ACCEPTANCE" shall mean Customer's written approval that its
     evaluation process demonstrated Prototype conformance to Product
     Specifications.
     "RELEASE TO LAYOUT CHECKLIST" ("RTL") shall mean a performance approval
     report in form and content as regularly used by IBM to document completion
     of the pre-layout Level Sensitive Scan Design ("LSSD") and timing analysis
     milestone of the Statement of Work.

Attachment No. 1
Agreement No. 000147
<PAGE>   9

Signature Copy

"RELEASE TO MANUFACTURING CHECKLIST" ("RTM") shall mean a performance approval
report in form and content as regularly used by IBM to document the design
review milestone at the completion of the post-layout timing analysis.

1.0  SCOPE OF WORK

1.1 IBM will perform ASIC physical design layout services and manufacture the
ASIC Product(s) identified in Part A of this Attachment.

1.2 Customer will provide IBM with the Customer's Items and cooperate with IBM
to enable IBM to manufacture Product and to perform Services in accordance with
this Agreement.

2.0  ASIC DESIGN AND DEVELOPMENT METHODOLOGY

2.1  IBM's ASIC development checklists shall document the development of each of
Customer's Product design(s).
     2.1.1 The IDR will be used to make a preliminary feasibility assessment of
     Customer's proposed Product design(s) and to advise Customer of ASIC design
     issues to ensure that Customer's design(s) will conform to IBM design
     requirements.
     2.1.2 The RTL shall include, expressly or by specific incorporation, the
     design specifications for each Product required by Customer to successfully
     enable IBM to place, route, perform static timing analysis and analyze LSSD
     testability for Customer's Product design data. The RTL shall also document
     the fact that such information is available to Customer and has been
     communicated to Customer before each Product netlist is released to layout.
     Customer's signature on the RTL shall record Customer's acknowledgment of
     satisfactory completion of all work on such Product through such Milestone.
     2.1.3 Customer's signature on the RTM shall record Customer's
     acknowledgment of (i) satisfactory completion of all work on such Product
     through the RTM Milestone and (ii) the specifications to which IBM's
     warranty obligations apply. To the extent that specifications and test
     coverage contained in the RTM vary the specifications and test coverage set
     forth in the RTL, the specifications and test coverage contained in the RTM
     shall govern.
     2.1.4 Customer's signature on the RTL and RTM checklists shall not be
     unreasonably withheld.

2.2  Any data relating to a Product design that Customer is to furnish to IBM
     must be compatible with IBM design tools, with which IBM will verify all
     design and engineering work.

Attachment No. 1
Agreement No. 000147
<PAGE>   10
          Confidential Materials omitted and filed with the Securities
              and Exchange Commission. Asterisks denote omissions

Signature Copy

3.0  CHANGE CONTROL

3.1  Customer may, at any time and from time to time, by written notice to IBM,
     request changes to the part numbers, specifications, or work scope. IBM
     will submit a written report to Customer setting forth the probable effect,
     if any, of such requested change on prices, payment or delivery. IBM shall
     not proceed with any change until authorized in writing by Customer. The
     parties shall promptly amend this Attachment to incorporate any agreed
     changes.

3.2  IBM may implement engineering changes required to satisfy governmental
     standards, protect Product or system integrity, or for environmental,
     health or safety reasons ("Mandatory Engineering Changes"). If requested by
     IBM, Customer will use reasonable efforts to incorporate Mandatory
     Engineering Changes in Products already shipped by IBM. Except for
     Mandatory Engineering Changes, IBM shall give Customer prior notice of
     engineering changes affecting the form, fit or function of a Product.

4.0  FORECASTING

Prior to the IDR Milestone, Customer shall provide IBM's customer account
representative a Product demand forecast, which shall cover a minimum of [**]
months broken out by Product and month. By the fifth day of every month, during
the term of this Attachment, Customer will provide IBM's customer account
representative an updated Product demand forecast covering a rolling [**] month
period (not to extend beyond the term of this Attachment), which will be
reviewed for approval by IBM within ten (10) days of receipt by IBM. IBM shall
have the right to reject a forecast for any reason, provided that IBM notifies
Customer of such rejection within ten (10) days of receipt of Customer's
forecast by IBM. Forecasts shall constitute good faith estimates of Customer's
anticipated requirements for Products but shall not contractually obligate IBM
to supply, nor contractually obligate Customer to purchase, the quantities of
Product set forth in such forecasts.

5.0  ORDERS

5.1 Customer will request delivery of Products by issuing written purchase
orders to the IBM ordering location identified in Section 9.0 of this
Attachment. Purchase orders for Product shall only specify:
               a) Customer's purchase order number;
               b) Customer's tax status - exempt or non-exempt;
               c) ship to location - complete address;
               d) bill to location - complete address;
               e) order from location - complete address;

Attachment No. 1
Agreement No. 000147
<PAGE>   11

Signature Copy

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

               f) shipping instructions, including preferred carrier and carrier
               account number;
               g) the agreement number of this Agreement;
               h) name of Customer contact;
               i) Product part numbers and quantities being ordered (in
               increments of the Minimum Order Quantity ("MOQ");
               j) the Product's applicable unit price; and
               k) requested shipment dates.

5.2 Customer will request NRE (which includes Prototypes) by issuing written
purchase orders to the IBM ordering location identified in Section 9.0 of this
Attachment. Purchase orders for NRE shall only specify:
               a) items a through h above;
               b) Prototype part numbers and the Milestone(s) to which the
               purchase order applies; and
               c) the applicable price for the NRE.

6.0  DELIVERY

6.1 The Purchase Order Lead Time for the Products and/or Services after receipt
of Customer's purchase order or all Items, whichever is received later, is as
set forth in Section 3.0 of Part A of this Attachment.

6.2 RESCHEDULING RIGHTS: Customer may reschedule a Shipment Date provided: (i)
Customer sends IBM written notice of the request to reschedule; (ii) the notice
is received by IBM more than thirty (30) days prior to the Shipment Date; and
(iii) the rescheduled delivery date is within ninety (90) days after the
Shipment Date. If the foregoing requirements are met, no cancellation charge
will be imposed by IBM in connection with the rescheduling. Once a Shipment Date
is rescheduled, the new shipment date is firm and cannot be rescheduled by
Customer.

7.0  PRICING

7.1  Customer agrees to pay the following NRE charge: [**]dollars ($[**]).

7.2  NRE consist of the following:

          Physical design of Customer's netlist
          First full RIT A/B Mask set
          Manufacturing slot and thirty (30) Prototypes

Attachment No. 1
Agreement No. 000147
<PAGE>   12

Signature Copy

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

          7.2.1 Design data preparation will be limited as follows:

          7.2.1.1 Customer may submit design data for two (2) passes (1.
          analysis netlist (for Customer's first design only) and 2. preliminary
          netlist) up to but not including the RTL Milestone.

          7.2.1.2 Customer may submit design data for one (1) pass between the
          RTL Milestone and the RTM Milestone and one (1) additional pass for
          timing closure only. Engineering changes for the one (1) additional
          pass shall be limited to a select number of cells and shall be subject
          to IBM's agreement that such changes are limited to the purpose of
          timing closure.

               a. Requests for additional design iterations shall be subject to
     Section 3.1 of this Attachment.

               b. 1 pass testing (test cycles limited to one test buffer).

7.3  Payment Milestones for NRE:

<TABLE>
<CAPTION>
Part Number                IDR              RTL                        ASP              TOTAL NRE
-------------------------------------------------------------------------------------------------
<S>                        <C>              <C>                        <C>              <C>
IFA                        [**]             [**]                       [**]               [**]
</TABLE>

IDR = on date of execution of IDR by Customer
RTL = on date of execution of RTL by Customer
ASP = on date of shipment of Prototypes

COMPENSATION FOR OTHER SERVICES:

     Other service(s): To be determined by IBM on a request for quote basis.

Attachment No. 1
Agreement No. 000147
<PAGE>   13

Signature Copy

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

7.4 Prices:

     7.4.1 Prototype device pricing:

     Subject to availability, as determined by IBM, Customer may order from the
     first Prototype lot additional Prototypes (in excess of the Prototypes
     included in the NRE charge), provided that IBM receives Customer's purchase
     order for such additional Prototypes no later than five (5) working days
     prior to the scheduled RTM signoff.

     Each Prototype device in excess of the Prototype devices included in the
     NRE charge shall cost $[**] per Prototype unit.

     7.4.2 Product unit pricing:             Price Per Unit

<TABLE>
<CAPTION>
     Number of Units Per        1999              2000             2001
     Calendar Year

<S>                            <C>               <C>              <C>
     2.5K<5K                   $[**]             $[**]            $[**]
     5K<10K                    $[**]             $[**]            $[**]
     10K<25K                    [**]             $[**]            $[**]
</TABLE>

     Minimum Order Quantity ("MOQ"): [**] units per order

     Minimum Shipment/Pack Quantity ("SPQ"): [**] units per shipment

8.0  CANCELLATION CHARGES

8.1       NRE Cancellation Charge:

If Customer cancels a purchase order for NRE or otherwise cancels NRE, then IBM
may cease work in connection with the Product. Additionally, Customer shall pay
IBM the total of all NRE charges due and owing at the time of cancellation, all
unpaid NRE charges applicable to the next NRE Payment Milestone according to the
schedule set forth in Section 7.3 of this Attachment and the cancellation
charges in the table below. Should Customer fail to purchase any Product within
the first twelve months after ASP, then Customer shall be deemed to have
cancelled all work under this Attachment and the cancellation charge pertaining
to "anytime after RTM" in the table below shall apply in addition to any amounts
due and owing.

<TABLE>
<CAPTION>
If a Cancellation Notice is Received by IBM          Cancellation Charge
-------------------------------------------          -------------------

<S>                                                  <C>
     Up to but not including IDR                           $[**]
     between IDR and RTL                                   $[**]
     any time after RTM                                    $[**]
</TABLE>

Attachment No. 1
Agreement No. 000147
<PAGE>   14

Signature Copy

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

8.2       Product Cancellation Charge:

In accordance with Section 4 of the Base Agreement, the following charges will
apply for any cancelled Customer order for Product or any portion thereof. The
"Cancellation Charge" referred to below is the percentage to be applied to the
prices stated above in Section 7.4 of this Attachment.

<TABLE>
<CAPTION>
          Cancellation Notice                            Cancellation charge
          Received by IBM

<S>                                                      <C>
          Anytime after
          wafer start                                           [**]%

          Prior to
          wafer start                                           [**]%
</TABLE>

<TABLE>
<CAPTION>
                         SHIP TO:                           BILL TO:
<S>                      <C>                                <C>
9.0 ORDERING LOCATION:

IBM                      Redstone Communications, Inc.      Redstone Communications, Inc.
281 Winter Street        5 Carlisle Road                    5 Carlisle Road
Waltham, MA 02154        Westford, MA 01886                 Westford, MA 01886
</TABLE>

10.0 TERM

The term of this Attachment expires on December 31, 2001.

11.0 COORDINATORS/NOTICES

Technical Coordinators:

     Customer: Christopher Lawler                   IBM: Eric Senn
     Phone: 978-692-1999                            Phone: 802-769-6749
     Fax: 978-692-9992                              Fax: 802-769-1833
     Email: cplawler@redstonecom.com                Email: ericsenn@us.ibm.com

Pursuant to section 14 of the Base Agreement, any notices hereunder shall be
given to the following persons:

     Customer: Christopher Lawler           IBM: John Beiswenger
     Address: 5 Carlisle Road                    Address: 1000 River Street
     Address: Westford, MA 01886                 Address: Essex, Jct., VT 05452
     Phone:   978-692-1999                       Phone:  802-769-1212
     Fax:     978-692-9992                       Fax:    802-769-3988
     Email:   cplawler@redstonecom.com           Email:  jbeiswen@us.ibm.com

Attachment No. 1
Agreement No. 000147
<PAGE>   15

Signature Copy

12. UNIQUE TERMS AND CONDITIONS

The following terms and conditions are applicable to this Attachment only.
Referring to the Base Agreement:

12.1 Modify section 12.1 of the Base Agreement, by deleting that provision in
its entirety and replacing it with the following:
     IBM warrants that each unit of Product will be free from defects in
     material and workmanship and will conform to the Product Specifications as
     set forth in the RTM for twelve (12) months after delivery. For purposes of
     this provision only, delivery to Customer of each unit of Product is deemed
     to occur five (5) calendar days after shipment from IBM. This warranty does
     not include repair of damage resulting from failure to provide a suitable
     installation environment, any use for other than the intended purpose,
     accident, disaster, neglect, misuse, transportation, alterations, or
     non-IBM repairs or activities. Customer acknowledges that the functionality
     of Products is contingent on Customer's designs and, therefore, such
     warranty does not apply to the functionality of Products fabricated under
     this Agreement. All Prototypes are provided "AS IS" without warranty of any
     kind.

Attachment No. 1
Agreement No. 000147
<PAGE>   16

Signature Copy

                                     Part A

1.0 Product Name and Description

Product Type: ASIC (Application Specific Integrated Circuit)

Buyer's Product Name: IFA

Process Technology: SA 12E

Chip Image Description: 10.99 mm x 10.99 mm, 4LM

Package Description: 824 CCGA, dual power supply, 1.27 mm pitch, 32.5 mm x 42.5
mm

2.0 Design Schedule

<TABLE>
<CAPTION>
Step              Description                                  Responsible Party      Estimated Completion Date
                                                                                      Month/Year

<S>               <C>                                          <C>                    <C>
1.                IDR Milestone                                     Both                     11/98
2.                Design Kit Delivery                               IBM                      Completed
3.                Requirements analysis
                  meeting                                           Both                     Completed
4.                Analysis Netlist to IBM                           Customer                 12/98
                  (required of first-time customers only)
5.                Preliminary Netlist to IBM                        Customer                 1/99
6.                Updated EDIF, SDF & timing
                  reports to Customer                               IBM                      2/99
7.                Production Netlist to IBM                         Customer                 2/99
8.                RTL Milestone                                     Both                     2/99
9.                Physical Design Complete                          IBM                      3/99
10.               Release to checking                               IBM                      4/99
11.               RTM Milestone                                     Both                     4/99
12.               Initial Prototype Delivery                        IBM                      5/99
13.               Design Verification
                  and Prototype Acceptance                          Customer                 8/99
14.               Start of Volume Production                        IBM                      12/99
</TABLE>

3.0 Purchase Order Lead Times: (to include purchase order approval and
manufacturing lead time):

Prototype: Prototypes to be delivered within forty-three (43) weeks.

Attachment No. 1
Agreement No. 000147
<PAGE>   17

Signature Copy

                                     Part B
                               Items/Deliverables

1.0 Items and IBM Deliverables associated with the IDR Milestone:

<TABLE>
<CAPTION>
     Items                                                IBM Deliverables

<S>                                                       <C>
     Library requirements                                 Design Kit to support synthesis simulation
     Netlist processing requirements                                  timing and testability
     Test Coverage requirements                           Testability guidelines
     Simultaneous switch requirements                     Clocktree process description
     Clocking requirements                                Timing specification form
     Power requirements                                   Module physical outline drawing
     Operating conditions/requirements                    Pin-out template (location of test, power
                                                                      and ground pins)
                                                          Detailed requirements analysis report
</TABLE>

2.0 Items and IBM Deliverables associated with the RTL Milestone:

<TABLE>
<CAPTION>
     Items                                                IBM Deliverables

<S>                                                       <C>
     Preliminary netlist                                  Updated EDIF, SDF and timing reports
     Final netlist
     Chip I/O assignment
     Chip timing assertion files
     Special logic functions placement directives
</TABLE>

3.0 Items and IBM Deliverables associated with the RTM Milestone:

<TABLE>
<CAPTION>
     Items                                                IBM Deliverables

<S>                                                       <C>
     Design functionality                                 Post layout EDIF, SDF and timing reports
     Verification                                         Final test coverage number for Customer's design
                                                          Prototypes
</TABLE>

Attachment No. 1
Agreement No. 000147
<PAGE>   18

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

                              ASIC ATTACHMENT NO. 2
                        CUSTOM SALES AGREEMENT NO. 000147

When signed by the parties where provided below, the following Statement of Work
shall be incorporated into Custom Sales Agreement No. 000147 as Attachment No. 2
effective on January 1, 1999. Attachments are governed by the terms and
conditions of the Base Agreement.

                                STATEMENT OF WORK
                            BASIC PRODUCT TASK ORDER
     DEFINITIONS
     "ASIC(s)" shall mean application specific integrated circuits.
     "AT SHIPMENT OF PROTOTYPES" ("ASP") shall mean the date of shipment of
     Prototypes to Customer.
     "IBM DELIVERABLES" shall mean the information, materials and tools supplied
     to Customer by IBM, as set forth in Part B of this Attachment, including,
     without limitation, IBM Design Kits, ASIC tool kits, and Prototype devices.
     "IBM DESIGN KITS" shall mean any IBM computer aided design software and
     data (including libraries) provided to Customer and supported by IBM for
     the purpose of designing or testing ASIC designs, as updated and enhanced
     from time to time. IBM licenses any IBM Design Kits to Customer under the
     terms and conditions of the IBM Design Kit License Agreement.
     "INITIAL ASIC DESIGN REVIEW CHECKLIST" ("IDR") shall mean a report in form
     and content as regularly used by IBM to make a preliminary assessment of
     the feasibility of Customer's proposed Product design.
     "MILESTONES" shall mean completion of the criteria specified in the (i)
     initial design review ("IDR Milestone"), (ii) pre-layout and timing
     analysis ("RTL Milestone"), and (iii) the release to manufacturing ("RTM
     Milestone") stages of work and the NRE payment milestones ("Payment
     Milestones") set forth in Section 7.3 of this SOW.
     "NRE" shall mean non-recurring engineering Services.
     "PRODUCT SPECIFICATIONS" shall mean those specifications for a Product,
     including but not limited to, post-layout EDIF and timing requirements
     (including clock skew requirements), a statement of post-layout test
     coverage, and I/O placement that are set forth in a Product's RTM expressly
     or by specific incorporation.
     "PROTOTYPE ACCEPTANCE" shall mean Customer's written approval that its
     evaluation process demonstrated Prototype conformance to Product
     Specifications.
     "RELEASE TO LAYOUT CHECKLIST" ("RTL") shall mean a performance approval
     report in form and content as regularly used by IBM to document completion
     of the pre-layout Level Sensitive Scan Design ("LSSD") and timing analysis
     milestone of the Statement of Work.

<PAGE>   19

"RELEASE TO MANUFACTURING CHECKLIST" ("RTM") shall mean a performance approval
report in form and content as regularly used by IBM to document the design
review milestone at the completion of the post-layout timing analysis.

1.0 SCOPE OF WORK

1.1 IBM will perform ASIC physical design layout services and manufacture the
ASIC Product(s) identified in Part A of this Attachment.

1.2 Customer will provide IBM with the Customer's Items and cooperate with IBM
to enable IBM to manufacture Product and to perform Services in accordance with
this Agreement.

2.0  ASIC DESIGN AND DEVELOPMENT METHODOLOGY

2.1  IBM's ASIC development checklists shall document the development of each of
Customer's Product design(s).
     2.1.1 The IDR will be used to make a preliminary feasibility assessment of
     Customer's proposed Product design(s) and to advise Customer of ASIC design
     issues to ensure that Customer's design(s) will conform to IBM design
     requirements.
     2.1.2 The RTL shall include, expressly or by specific incorporation, the
     design specifications for each Product required by Customer to successfully
     enable IBM to place, route, perform static timing analysis and analyze LSSD
     testability for Customer's Product design data. The RTL shall also document
     the fact that such information is available to Customer and has been
     communicated to Customer before each Product netlist is released to layout.
     Customer's signature on the RTL shall record Customer's acknowledgment of
     satisfactory completion of all work on such Product through such Milestone.
     2.1.3 Customer's signature on the RTM shall record Customer's
     acknowledgment of (i) satisfactory completion of all work on such Product
     through the RTM Milestone and (ii) the specifications to which IBM's
     warranty obligations apply. To the extent that specifications and test
     coverage contained in the RTM vary the specifications and test coverage set
     forth in the RTL, the specifications and test coverage contained in the RTM
     shall govern.
     2.1.4 Customer's signature on the RTL and RTM checklists shall not be
     unreasonably withheld.

2.2  Any data relating to a Product design that Customer is to furnish to IBM
     must be compatible with IBM design tools, with which IBM will verify all
     design and engineering work.

<PAGE>   20
          Confidential Materials omitted and filed with the Securities
              and Exchange Commission. Asterisks denote Omissions

3.0 CHANGE CONTROL

3.1  Customer may, at any time and from time to time, by written notice to IBM,
     request changes to the part numbers, specifications, or work scope. IBM
     will submit a written report to Customer setting forth the probable effect,
     if any, of such requested change on prices, payment or delivery. IBM shall
     not proceed with any change until authorized in writing by Customer. The
     parties shall promptly amend this Attachment to incorporate any agreed
     changes.

3.2  IBM may implement engineering changes required to satisfy governmental
     standards, protect Product or system integrity, or for environmental,
     health or safety reasons ("Mandatory Engineering Changes"). If requested by
     IBM, Customer will use reasonable efforts to incorporate Mandatory
     Engineering Changes in Products already shipped by IBM. Except for
     Mandatory Engineering Changes, IBM shall give Customer prior notice of
     engineering changes affecting the form, fit or function of a Product.

4.0  FORECASTING

Prior to the IDR Milestone, Customer shall provide IBM's customer account
representative a Product demand forecast, which shall cover a minimum of [**]
months broken out by Product and month. By the fifth day of every month, during
the term of this Attachment, Customer will provide IBM's customer account
representative an updated Product demand forecast covering a rolling [**] month
period (not to extend beyond the term of this Attachment), which will be
reviewed for approval by IBM within ten (10) days of receipt by IBM. IBM shall
have the right to reject a forecast for any reason, provided that IBM notifies
Customer of such rejection within ten (10) days of receipt of Customer's
forecast by IBM. Forecasts shall constitute good faith estimates of Customer's
anticipated requirements for Products but shall not contractually obligate IBM
to supply, nor contractually obligate Customer to purchase, the quantities of
Product set forth in such forecasts.

5.0  ORDERS

5.1 Customer will request delivery of Products by issuing written purchase
orders to the IBM ordering location identified in Section 9.0 of this
Attachment. Purchase orders for Product shall only specify:

                    a) Customer's purchase order number;
                    b) Customer's tax status - exempt or non-exempt;
                    c) ship to location - complete address;
                    d) bill to location - complete address;

<PAGE>   21

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

                    e)  order from location - complete address;
                    f) shipping instructions, including preferred carrier and
                    carrier account number;
                    g) the agreement number of this Agreement;
                    h) name of Customer contact;
                    i) Product part numbers and quantities being ordered (in
                    increments of the Minimum Order Quantity ("MOQ");
                    j) the Product's applicable unit price; and
                    k) requested shipment dates.

5.2 Customer will request NRE (which includes Prototypes) by issuing written
purchase orders to the IBM ordering location identified in Section 9.0 of this
Attachment. Purchase orders for NRE shall only specify:

                    a) items a through h above;
                    b) Prototype part numbers and the Milestone(s) to which the
                    purchase order applies; and
                    c) the applicable price for the NRE.

6.0  DELIVERY

6.1 The Purchase Order Lead Time for the Products and/or Services after receipt
of Customer's purchase order or all Items, whichever is received later, is as
set forth in Section 3.0 of Part A of this Attachment.

6.2 RESCHEDULING RIGHTS: Customer may reschedule a Shipment Date provided: (i)
Customer sends IBM written notice of the request to reschedule; (ii) the notice
is received by IBM more than thirty (30) days prior to the Shipment Date; and
(iii) the rescheduled delivery date is within ninety (90) days after the
Shipment Date. If the foregoing requirements are met, no cancellation charge
will be imposed by IBM in connection with the rescheduling. Once a Shipment Date
is rescheduled, the new shipment date is firm and cannot be rescheduled by
Customer.

7.0  PRICING

7.1  Customer agrees to pay the following NRE charge: [**] dollars ($[**]).

<PAGE>   22

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

7.2  NRE consist of the following:

          Physical design of Customer's netlist
          First full RIT A/B Mask set
          Manufacturing slot and  thirty (30) Prototypes

     7.2.1 Design data preparation will be limited as follows:

          7.2.1.1 Customer may submit design data for two (2) passes (1.
          analysis netlist (for Customer's first design only) and 2. preliminary
          netlist) up to but not including the RTL Milestone.

          7.2.1.2 Customer may submit design data for one (1) pass between the
          RTL Milestone and the RTM Milestone and one (1) additional pass for
          timing closure only. Engineering changes for the one (1) additional
          pass shall be limited to a select number of cells and shall be subject
          to IBM's agreement that such changes are limited to the purpose of
          timing closure.

               a. Requests for additional design iterations shall be subject to
     Section 3.1 of this Attachment.

               b. 1 pass testing (test cycles limited to one test buffer).

7.3  Payment Milestones for NRE:

<TABLE>
<CAPTION>
Part Number                IDR              RTL                        ASP              TOTAL
-------------------------------------------------------------------------------------------------
<S>                        <C>              <C>                        <C>              <C>
NRE
---
EFA                        [**]             [**]                       [**]             [**]
</TABLE>

IDR = on date of execution of IDR by Customer
RTL = on date of execution of RTL by Customer
ASP = on date of shipment of Prototypes

COMPENSATION FOR OTHER SERVICES:

     Other service(s): To be determined by IBM on a request for quote basis.

<PAGE>   23

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

7.4  Prices:
     7.4.1 Prototype device pricing:

     Subject to availability, as determined by IBM, Customer may order from the
     first Prototype lot additional Prototypes (in excess of the Prototypes
     included in the NRE charge), provided that IBM receives Customer's purchase
     order for such additional Prototypes no later than five (5) working days
     prior to the scheduled RTM signoff.

     Each Prototype device in excess of the Prototype devices included in the
     NRE charge shall cost $[**] per Prototype unit.

<TABLE>
<CAPTION>
     7.4.2  Product unit pricing:                 Price Per Unit

     Number of Units Per                 1999             2000              2001
     Calendar Year

<S>                                     <C>               <C>              <C>
     2.5K<5K                            $[**]             $[**]            $[**]
     5K<10K                             $[**]             $[**]            $[**]
     10K<25K                             [**]             $[**]            $[**]
</TABLE>

     Minimum Order Quantity ("MOQ"): [**] units per order

     Minimum Shipment/Pack Quantity ("SPQ"): [**] units per shipment

8.0  CANCELLATION CHARGES

8.1  NRE Cancellation Charge:

If Customer cancels a purchase order for NRE or otherwise cancels NRE, then IBM
may cease work in connection with the Product. Additionally, Customer shall pay
IBM the total of all NRE charges due and owing at the time of cancellation, all
unpaid NRE charges applicable to the next NRE Payment Milestone according to the
schedule set forth in Section 7.3 of this Attachment and the cancellation
charges in the table below. Should Customer fail to purchase any Product within
the first twelve months after ASP, then Customer shall be deemed to have
cancelled all work under this Attachment and the cancellation charge pertaining
to "anytime after RTM" in the table below shall apply in addition to any amounts
due and owing.

<TABLE>
<CAPTION>
If a Cancellation Notice is Received by IBM                 Cancellation Charge
-------------------------------------------                 -------------------

<S>                                                         <C>
     Up to but not including IDR                                     [**]
     between IDR and RTL                                            $[**]
     any time after RTM                                             $[**]
</TABLE>

<PAGE>   24

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

8.2       Product Cancellation Charge:

In accordance with Section 4 of the Base Agreement, the following charges will
apply for any cancelled Customer order for Product or any portion thereof. The
"Cancellation Charge" referred to below is the percentage to be applied to the
prices stated above in Section 7.4 of this Attachment.

<TABLE>
<CAPTION>
               Cancellation Notice                            Cancellation charge
               Received by IBM

<S>                                                           <C>
               Anytime after                                         [**]%
               wafer start

               Prior to                                              [**]%
               wafer start
</TABLE>

<TABLE>
<CAPTION>
9.0 ORDERING LOCATION:   SHIP TO:                           BILL TO:
<S>                      <C>                                <C>
IBM                      Redstone Communications, Inc.      Redstone Communications, Inc.
281 Winter Street        5 Carlisle Road                    5 Carlisle Road
Waltham, MA 02154        Westford, MA 01886                 Westford, MA 01886
</TABLE>

10.0 TERM

The term of this Attachment expires on December 31, 2001.

11.0 COORDINATORS/NOTICES

Technical Coordinators:

     Customer: Christopher Lawler                 IBM: Eric Senn
     Phone: 978-692-1999                          Phone: 802-769-6749
     Fax: 978-692-9992                            Fax: 802-769-1833
     Email: cplawler@redstonecom.com              Email: ericsenn@us.ibm.com

<PAGE>   25

Pursuant to section 14 of the Base Agreement, any notices hereunder shall be
given to the following persons:

     Customer: Christopher Lawler            IBM: John Beiswenger
     Address: 5 Carlisle Road                     Address: 1000 River Street
     Address: Westford, MA 01886                  Address: Essex, Jct., VT 05452
     Phone:   978-692-1999                        Phone:  802-769-1212
     Fax:     978-692-9992                        Fax:    802-769-3988
     Email:   cplawler@redstonecom.com            Email:  jbeiswen@us.ibm.com

12. UNIQUE TERMS AND CONDITIONS

The following terms and conditions are applicable to this Attachment only.
Referring to the Base Agreement:

12.1 Modify section 12.1 of the Base Agreement, by deleting that provision in
its entirety and replacing it with the following:
     IBM warrants that each unit of Product will be free from defects in
     material and workmanship and will conform to the Product Specifications as
     set forth in the RTM for twelve (12) months after delivery. For purposes of
     this provision only, delivery to Customer of each unit of Product is deemed
     to occur five (5) calendar days after shipment from IBM. This warranty does
     not include repair of damage resulting from failure to provide a suitable
     installation environment, any use for other than the intended purpose,
     accident, disaster, neglect, misuse, transportation, alterations, or
     non-IBM repairs or activities. Customer acknowledges that the functionality
     of Products is contingent on Customer's designs and, therefore, such
     warranty does not apply to the functionality of Products fabricated under
     this Agreement. All Prototypes are provided "AS IS" without warranty of any
     kind.

<PAGE>   26

                                     PART A

1.0 Product Name and Description

     Product Type: ASIC (Application Specific Integrated Circuit)

     Buyer's Product Name: EFA

     Process Technology: SA 12E

     Chip Image Description: 9.29 mm x 9.92 mm, 4LM with last layer of metal MT

     Package Description: 824 CCGA, dual power supply, 1.27 mm pitch, 32.5 mm x
     42.5 mm

2.0  Design Schedule

<TABLE>
<CAPTION>
      Step       Description                                  Responsible Party        Estimated
                                                                                    Completion Date
                                                                                       Month/Year

<S>              <C>                                          <C>                   <C>
      1.         IDR Milestone                                Both                       1/99
      2.         Design Kit Delivery                          IBM                        2/99
      3.         Requirements analysis
                 meeting                                      Both                       2/99
      4.         Analysis Netlist to IBM                      Customer                   2/99
                 (required of first-time customers only)
      5.         Preliminary Netlist to IBM                   Customer                   3/99
      6.         Updated EDIF, SDF & timing
                 reports to Customer                          IBM                        4/99
      7.         Production Netlist to IBM                    Customer                   4/99
      8.         RTL Milestone                                Both                       4/99
      9.         Physical Design Complete                     IBM                        5/99
      10.        Release to checking                          IBM                        5/99
      11.        RTM Milestone                                Both                       6/99
      12.        Initial Prototype Delivery                   IBM                        7/99
      13.        Design Verification
                 and Prototype Acceptance                     Customer                   8/99
      14.        Start of Volume Production                   IBM                        12/99
</TABLE>

3.0  Purchase Order Lead Times: (to include purchase order approval and
     manufacturing lead time):

     Prototype: Prototypes to be delivered within forty-three (43) calendar days
     after RTM.

<PAGE>   27

     Production: fifteen (15) weeks.

<PAGE>   28

                                     PART B
                               Items/Deliverables

1.0 Items and IBM Deliverables associated with the IDR Milestone:

<TABLE>
<CAPTION>
     Items                                             IBM Deliverables

<S>                                                    <C>
     Library requirements                              Design Kit to support synthesis simulation
     Netlist processing requirements                       timing and testability
     Test Coverage requirements                        Testability guidelines
     Simultaneous switch requirements                  Clocktree process description
     Clocking requirements                             Timing specification form
     Power requirements                                Module physical outline drawing
     Operating conditions/requirements                 Pin-out template (location of test, power
                                                            and ground pins)
                                                       Detailed requirements analysis report
</TABLE>

2.0 Items and IBM Deliverables associated with the RTL Milestone:

<TABLE>
<CAPTION>
     Items                                             IBM Deliverables

<S>                                                    <C>
     Preliminary netlist                               Updated EDIF, SDF and timing reports
     Final netlist
     Chip I/O assignment
     Chip timing assertion files
     Special logic functions placement directives
</TABLE>

3.0 Items and IBM Deliverables associated with the RTM Milestone:

<TABLE>
<CAPTION>
     Items                                             IBM Deliverables

<S>                                                    <C>
     Design functionality                              Post layout EDIF, SDF and timing reports
     Verification                                      Final test coverage number for Customer's design

                                                       PrototypesAccepted and Agreed To:
</TABLE>

<TABLE>
<CAPTION>
REDSTONE COMMUNICATIONS, INC.                          INTERNATIONAL BUSINESS MACHINES CORPORATION

<S>                                                    <C>
BY: /s/ Christopher Lawler                             BY: /s/ Peter D. Hansen
   -------------------------------                        ----------------------------------
NAME: CHRISTOPHER LAWLER                               NAME: PETER D. HANSEN
TITLE: VP OF ENGINEERING                               TITLE: VP NORTH AMERICAN SALES, IBM MD
</TABLE><PAGE>   1
                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

                                                                   EXHIBIT 10.11
        Confidential Materials omitted and filed with the Securities and
                Exchange Commission. Asterisks denote omissions.

This agreement between ACT and Redstone Communications is in effect for a period
of one year as of 12/3/98

It is automatically renewed each month unless written notice is received.

ACT will require written notice 90 days in advance in order to cancel this
agreement.

1.   ORDER ADMINISTRATION AND FORECAST MANAGEMENT

     REDSTONE COMMUNICATIONS must have [**] worth of purchase orders in place
     at all times. Customer must also have an additional [**] of forecast in
     place at all times. Purchase orders must specify part number, quantity, rev
     level, price and requested delivery dates. First 30 days are
     non-cancelable, but can be rescheduled within the same Quarter. ACT will
     schedule all material to arrive 21 days prior to requested in-house date at
     Redstone Communications. Days 31-60 are non-cancelable but can be
     rescheduled out to a maximum of 90 days one time only, as long as it
     remains within the same Quarter (refer to guidelines below). Days 61-90 are
     fully reschedulable/cancelable within the following guidelines:

     Redstone Communications will be responsible for all excess custom and
     unique material bought on their behalf. Redstone Communications will be
     responsible for all excess created by non-cancelable/non-returnable items.
     Redstone Communications will be responsible for all excess created by
     purchasing of minimum order quantities and minimum package sizes. ACT will
     plan material to support the forecast provided by Redstone Communications.
     Redstone Communications must convert forecast at 100% or be responsible for
     NC/NR's, and custom/unique parts purchased to support orders and forecast.

     ACT will charge [**]% per month for items carried in inventory greater than
     7 weeks as a result of reschedules.

     ACT will charge [**]% for material returned to suppliers on the customers
     behalf due to reschedules or cancellations.

     ACT will charge a [**]% handling charge (based on the unburdened cost) for
     excess or obsolete material which must be returned to the customer.

<PAGE>   2

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

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

2.   PRICING

     ACT will submit a formal quote to set pricing for the upcoming quarter. ACT
and Redstone Communications will meet every three months to review process and
material cost changes. New pricing for the upcoming quarter will be set at that
time. Major changes may be negotiated by either party during the quarter when
necessary.

All prices are F.O.B. shipping point, on any product not delivered directly by
ACT owned vehicles. Payment terms are Net 30 days.

Material cost reductions negotiated solely by ACT on behalf of the customer will
be split [**]% to each party for a period of one year.

3.   FLEXIBILITY

     ACT agrees to provide a [**]% upside in any given quarter commencing three
weeks from receipt of request. Redstone Communications will be informed in
advance of any charges associated with holding critical components in stock
(boards/ASICS/sheet metal, etc.). Redstone Communications assumes all risk for
ECO's to critical parts held in stock to support flexibility. Should Redstone
Communications exercise the full [**]% flexibility it will not again be
available until the lead time of the longest lead-time component.

4.   CUSTOMER DELIVERABLES

     Unless otherwise stated in writing, Redstone Communications agrees to
provide to ACT all information required to properly manufacture the product
(Attachment A). Redstone Communications agrees to provide all unique test
equipment, test procedures and software code required to isolate defects. ACT
disclaims liability for any non-manufacturing related defects, which such tools
did not isolate.

     In the event that ACT is unable to debug particular product, after
exercising all resources internal to ACT, the customer is to provide Engineering
support necessary to ACT which shall culminate in the shipment of the product to
the customer. In said cases that both ACT and customer Engineering/Technical
support are unable to bring the subject product into working condition, the
product shall become the customer's responsibility. The product shall be
shipped, as is, to the customer, against an existing, open purchase order, and
will be tagged accordingly to identify it as a non-functioning product. The
"determined maximum time" spent on the board will be identified by part number,
and will become part of an attachment at a later time.

                                                                          Page 2
<PAGE>   3

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

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

5.   APPROVED MANUFACTURERS

     ACT will only purchase components specified and approved by CUSTOMER. Any
changes are subject to CUSTOMER's advance written consent. If CUSTOMER refuses
to give such consent or fails to respond within ten days of ACT's request
therefor and ACT has used its reasonable efforts to purchase from the approved
manufacturers and shortages or allocation sexist, ACT shall not be liable for
failing to deliver the affected Product.

6.   WARRANTY

     a) ACT warrants that the product provided under this Agreement will be free
of manufacturing defects for a period of one year from date of shipment. ACT
will, if permitted to do so, pass through to CUSTOMER any warranties for
components purchased for CUSTOMER. The warranty period for returned Product
shall be the balance of the original warranty period or ninety (90) days,
whichever is greater. CUSTOMER's sole remedy and ACT's sole obligation shall be
to repair or replace (at its option) the defective Product. Any Product returned
to ACT which, after inspection and test by ACT, is found to be free of defects
shall be subject to a "no Defect Found Charge."

     b) This warranty is void if Product(s) have been subjected to abuse,
misuse, accident, alteration, neglect, operation outside the parameters or
environment identified in CUSTOMER's product specifications, or unauthorized
repair, installation or alternations by anyone other than ACT.

     c) CUSTOMER shall contact ACT for a RMA prior to returning any Product for
repair. ACT will provide the RMA with [**] for priority requests) of receipt.
CUSTOMER will forward the defective Product to ACT freight prepaid. ACT will
return the repaired or replaced Product, freight prepaid, to CUSTOMER as quickly
as practical but no later than [**] from the date ACT received the defective
Product.

     d) If ACT determines the warranted product is unrepairable-repairable or
ACT no longer possesses tools and equipment necessary to perform the repairs,
ACT shall have the option to refund the Purchase Price in lieu of repair or
replacement.

     e) If ACT, after performing all customer defined testing to the subject
RMA, is unable to identify ANY failures with the product, the RMA shall be
returned to the customer as a "No Fault Found". Any RMA product returned to the
customer as a "No Fault Found" will be accompanied by a "NFF fee", to be paid to
ACT by said customer. This will be a standard compilation of testing and
assembly costs incurred by ACT and will be identified and tracked by part number
in an attachment to this document. This paragraph pertains to Production Built
boards only.

                                                                          Page 3
<PAGE>   4

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

     f) THE FOREGOING WARRANTY PROVISIONS SET FORTH ACT's SOLE LIABILITY AND ARE
CUSTOMER's EXCLUSIVE REMEDIES FOR CLAIMS BASED UPON DEFECTS IN, OR FAILURE OF
ANY PRODUCT PROVIDED HEREUNDER I ACT HEREBY SPECIFICALLY DISCLAIMS ANY AND ALL
OTHER WARRANTIES WITH RESPECT TO PRODUCTS SUPPLIED HEREUNDER INCLUDING ANY
WARRANTY OF MERCHANTABILITY AND FITNESS FOR ANY PARTICULAR PURPOSE.

7.   FORCE MAJEURE

     Neither party shall be considered in default or liable for any delay or
failure to perform under this Agreement due to causes beyond its reasonable
control. If such delay or failure continues for more than thirty (30) days
CUSTOMER and ACT will meet to mutually agree upon the actions to be taken. If
such delay or failure continues for more than ninety days, the other party may
terminate this Agreement and any purchase orders issued hereunder with thirty
(30) days written notice.

8.   INSURANCE

     a) ACT will maintain adequate insurance to protect from fire, theft and
damage the Material inventory to be used for the manufacture of CUSTOMER
Products. ACT shall maintain adequate insurance to protect from fire, theft and
damage any consigned inventory, in-circuit test fixtures capital equipment,
returned materials and other property of CUSTOMER in the hands of ACT.

     b) CUSTOMER agrees to take all necessary precautions to prevent injury to
any persons (including employees of ACT) or damage to property (including ACT's
property) during the term of this Agreement and shall defend, indemnify, and
hold ACT, its officers, directors, agents and employees harmless from and
against any and all claims, losses expenses (including reasonable attorney's
fees), demands, or judgments ("Claims") which result from or arise out of: (1)
the presence of CUSTOMER or equipment or tools used by CUSTOMER in the
performance of this Agreement on the property of ACT; or (2) the performance by
CUSTOMER or its personnel of any effort for or on behalf of ACT; or (3) the
acts, errors, omissions, or negligence of CUSTOMER or CUSTOMER's personnel; or
(4) the use by CUSTOMER of ACT's equipment, tools, or facilities ("Equipment")
whether or not any Claims are based upon the condition of the Equipment of
ACT's, its agent's, or employee's alleged negligence in permitting its use.
Permission by ACT to use the Equipment shall be gratuitous.

9.   GENERAL

Redstone Communications and ACT Manufacturing agree to hold a Quarterly Review
which shall include topics such as Quality Data, Performance Data,
Test/engineering Issues, and a "Technology Roadmap" review, to discuss new
technologies and improvements to existing technologies. ACT agrees to make every
effort to work with and support new technologies being pursued by Redstone
Communications. This effort shall pertain to supplying said technology in a
reasonable timeframe determined by both companies.

                                                                          Page 4
<PAGE>   5

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the authorized representatives of the parties have executed
this Agreement under seal as of the date(s) set forth below.

ACT MANUFACTURING, INC.                      COMPANY NAME

By /s/ Robert M. [Illegible]                 By /s/ James A. Dolce, Jr.
   -------------------------------              --------------------------------
(Signature)                                     (Signature)
Robert M. [Illegible]                        James A. Dolce Jr.
----------------------------------           -----------------------------------
(Printed Name)                               (Printed Name)
V.p. Business Development                    President
----------------------------------           -----------------------------------
(Title)                                      (Title)
December 7, 1998                             Dec. 3, 1998
----------------------------------           -----------------------------------
(Date)                                       (Date)

List of products covered by this agreement are detailed on ATTACHMENT B.

ATTACHMENT B to be reviewed and updated quarterly.

                                                                          Page 5
<PAGE>   6
          Confidential Materials omitted and filed with the Securities
              and Exchange Commission. Asterisks denote omissions

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

ATTACHMENT A

                              CUSTOMER DELIVERABLES

Bill [**]

[**] Information

[**] Drawings

[**] Files

[**] Files

Programs [**]

[**]

[**]

[**] in [**]

                                                                          Page 6
<PAGE>   7

                             ACT MANUFACTURING, INC.
                        MANUFACTURING SERVICES AGREEMENT
--------------------------------------------------------------------------------

ATTACHMENT B

                            LIST OF PRODUCTS COVERED
                                BY THIS AGREEMENT

<TABLE>
<CAPTION>
Redstone Part Number                                          ACT Part Number
--------------------                                          ---------------

<S>                                                           <C>
340-00013                                                     RS-340-00013

340-00014                                                     RS-340-00014

340-00023                                                     RS-340-00023

340-00025                                                     RS-340-00025

340-00026                                                     RS-340-00026

340-00027                                                     RS-340-00027

340-00028                                                     RS-340-00028

340-00029                                                     RS-340-00029

340-00031                                                     RS-340-00031

340-00032                                                     RS-340-00032

340-00033                                                     RS-340-00033

340-00034                                                     RS-340-00034

340-00035                                                     RS-340-00035

340-00037                                                     RS-340-00037
</TABLE>

                                                                          Page 7

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