Document:

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                             CONFIDENTIAL TREATMENT                 Exhibit 10.1

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE PORTIONS OF THE
AGREEMENT INDICATED WITH [****]. A COMPLETE COPY OF THIS AGREEMENT, INCLUDING
THE REDACTED TERMS, HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION.

                        MANUFACTURE AND SUPPLY AGREEMENT

         This Manufacture and Supply Agreement (the "AGREEMENT") is entered into
as of June 30, 2002 (the "EFFECTIVE DATE") by and between DMC Stratex Networks,
Inc., a Delaware corporation, having an office and place of business at 170 Rose
Orchard Way, San Jose, California 95134, United States of America ("DMC
STRATEX"), and Microelectronics Technology, Inc., a R.O.C. corporation, having
an office and place of business at No 1 Innovation Road II, Hsinchu 300, Taiwan,
R.O.C. ("MTI"). Capitalized terms not otherwise defined herein shall have the
meaning set forth on Exhibit A attached hereto.

         WHEREAS, MTI manufactures and supplies digital microwave radio
components and products for use in telecom applications;

         WHEREAS, DMC Stratex desires to have MTI manufacture and supply to DMC
Stratex, and MTI desires to manufacture and supply, certain Products
manufactured to Specifications and in accordance with the terms and conditions
of this Agreement; and

         WHEREAS, DMC Stratex will transfer to MTI, on a consignment basis,
certain inventory of components and accessories for incorporation into Products,
and MTI agrees to deplete, to the fullest extent, such consignment inventory, in
connection with the manufacture of the Products prior to obtaining similar
components from third party suppliers.

         NOW, THEREFORE, in consideration of the mutual representations,
warranties, and covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereby agree as follows:

1. KNOW-HOW LICENSE.

1.1. DMC Stratex License. Subject to the terms and conditions of this Agreement
and during the Term and for a period necessary for MTI to fulfill the final
Purchase Order issued under Section 12.1 and to maintain and perform its repair
capability under Section 12.4, DMC Stratex hereby grants to MTI, and MTI hereby
accepts, a non-exclusive, non-transferable, royalty-free, fully paid-up, and
non-sublicensable (except for sublicense to a Subsidiary) right and license,
solely in Taiwan, the People's Republic of China ("PRC") and any other locations
agreed to by DMC Stratex, to use the DMC Stratex Know-How (and any improvements
thereto) and the Intellectual Property Rights associated therewith, solely to
develop and manufacture the Products for sale to DMC Stratex and to provide
warranty and repair services for such Products to DMC Stratex, and to entities
and persons designated by DMC Stratex, in DMC Stratex's sole and absolute
discretion.

1.2. Restrictions and Reservation of Rights. MTI agrees not to use the DMC
Stratex Know-How, or make or sell any Product, except as expressly permitted in
Section 1.1.

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All Intellectual Property Rights in and to the Product and to the
DMC Stratex Know-How are and shall at all times be owned by DMC Stratex, subject
only to the license rights expressly granted to MTI in Section 1.1. Any and all
rights not expressly granted to MTI herein are reserved by DMC Stratex.

2. OWNERSHIP OF KNOW-HOW.

2.1. Ownership.

         2.1.1.   DMC Stratex Ownership. All DMC Stratex Know-How shall at all
                  times remain the exclusive property of DMC Stratex. MTI shall
                  not apply to register any DMC Stratex Know-How, Specifications
                  or Products, or any aspect of the foregoing owned by DMC
                  Stratex, under any form of intellectual property protection
                  registration system, including, without limitation, patent,
                  design or copyright registration, in any jurisdiction
                  throughout the world. MTI shall not at any time challenge or
                  oppose DMC Stratex's ownership of or rights to use or register
                  the DMC Stratex Know-How, Products or the Specifications.

         2.1.2.   MTI Ownership. All MTI Know-How shall at all times remain the
                  exclusive property of MTI. DMC Stratex shall not apply to
                  register any MTI Know-How, or any MTI proprietary aspect
                  thereof, under any form of intellectual property protection
                  registration system, including, without limitation, patent,
                  design or copyright registration, in any jurisdiction
                  throughout the world. DMC Stratex shall not at any time
                  challenge or oppose MTI's ownership of or rights to use or
                  register the MTI Know-How.

2.2. License to MTI Know-How.

         2.2.1.   MTI hereby grants, subject to Section 2.2.3, to DMC Stratex,
                  and DMC Stratex hereby accepts, a non-exclusive, irrevocable,
                  royalty-bearing, non-transferable, world-wide, sublicensable
                  (subject to the restrictions under Section 2.2.2 below) right
                  and license to use, reproduce and incorporate all or any
                  portion of the MTI Know-How into and for manufacture of
                  Products, and to sell, offer for sale, distribute, market and
                  advertise such Products containing MTI Know-How, for so long
                  as DMC Stratex continues to sell such Products. The rate of
                  royalty paid for the license of the MTI Know-How granted
                  herein shall be as set forth on Exhibit L.

         2.2.2.   The right to sublicense by DMC Stratex shall be subject to the
                  restrictions that (a) the sublicensee of DMC Stratex shall
                  only have the right, under such sublicense, to manufacture the
                  Products exclusively for DMC Stratex, and shall not
                  manufacture for itself or for any third party in any form; (b)
                  the sublicensee shall have no right to use any of MTI Know-How
                  for manufacture, reproduction or incorporation into any other
                  product, component or device, other than the Products, and
                  shall have no right to sell, offer for sale, distribute,
                  market, advertise or otherwise dispose of any such product,
                  component or device containing any of MTI Know-How, other than
                  the Products; (c) the sublicense shall have a duration no
                  longer than that for the license granted to DMC

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                  Stratex in Section 2.2.1 herein; (d) there should be no more
                  than two sublicensees concurrently at any point in time to
                  manufacture the Products; (e) DMC Stratex shall give prior
                  notice to MTI of any such sublicensee and related information;
                  and (f) no further sublicense may be granted by any of such
                  sublicensees.

         2.2.3.   DMC Stratex shall not exercise the license granted to DMC
                  Stratex by MTI in Section 2.2.1 to manufacture the Product on
                  its own or by a third party, (a) so long as MTI has not
                  commenced transition of its manufacturing services pursuant to
                  Section 16.5, or (b) so long as MTI has not become subject to
                  bankruptcy, receivership, liquidation, reorganization or other
                  proceeding of insolvency in favor of the general interest of
                  creditors.

2.3. Assignment of Improvements.

         2.3.1.   Assignment of DMC Stratex Know-How Improvements. MTI shall
                  promptly communicate to DMC Stratex, in writing, any and all
                  improvements and developments to the DMC Stratex Know-How
                  related to the Products, conceived or developed by MTI, or a
                  third party working under MTI's direction or control, ("DMC
                  STRATEX KNOW-HOW IMPROVEMENTS") including, without limitation,
                  any design changes or other information. Subject to the
                  license granted to MTI under Section 1.1, MTI hereby
                  irrevocably conveys, transfers, assigns and delivers to DMC
                  Stratex all rights, title and interests in and to the DMC
                  Stratex Know-How Improvements, throughout the world, free from
                  any liens and encumbrances, to the extent that DMC Stratex is
                  not already the owner of all such rights, title and interests
                  therein and thereto; except that any improvement or
                  development made by MTI to the MTI Know-How shall constitute
                  and remain a part of MTI Know-How and property. DMC Stratex
                  Know-How Improvements shall be deemed DMC Stratex Know-How for
                  the purposes of this Agreement.

         2.3.2.   Assignment of MTI Know-How Improvements. DMC Stratex shall
                  promptly communicate to MTI, in writing, any and all
                  improvements and developments to the MTI Know-How related to
                  the Products, conceived or developed by DMC Stratex, or a
                  third party working under DMC Stratex's direction or control
                  under this Agreement, ("MTI KNOW-HOW IMPROVEMENTS") including,
                  without limitation, any design changes or other information.
                  Subject to the license granted to DMC Stratex under Section
                  2.2, DMC Stratex hereby irrevocably conveys, transfers,
                  assigns and delivers to MTI all rights, title and interests in
                  and to the MTI Know-How Improvements, throughout the world,
                  free from any liens and encumbrances, to the extent that MTI
                  is not already the owner of all such rights, title and
                  interests therein and thereto; except that any improvement or
                  development to the DMC Stratex Know-How shall constitute and
                  remain a part of DMC Stratex Know-How and property. MTI
                  Know-How Improvements shall be deemed MTI Know-How for the
                  purposes of this Agreement.

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2.4. Further Assistance.

         2.4.1.   Assistance by MTI. MTI agrees to cooperate with DMC Stratex or
                  its designee(s), at DMC Stratex's or its designees' expense,
                  both during and after the Term, in applying for, obtaining,
                  perfecting, evidencing, sustaining and enforcing DMC Stratex's
                  Intellectual Property Rights in and to the DMC Stratex
                  Know-How Improvements, including, without limitation,
                  executing such written instruments as may be prepared by DMC
                  Stratex and doing such other acts as may be necessary in the
                  opinion of DMC Stratex to obtain a patent, register a
                  copyright, or otherwise enforce the ownership of DMC Stratex
                  in such DMC Stratex Know-How Improvement (and MTI hereby
                  irrevocably appoints DMC Stratex and any of its officers and
                  agents as its attorney in fact to act for and on MTI's behalf
                  of, and instead of MTI only for the matter specifically
                  provided for in this Section 2.4.1, with the same legal force
                  and effect as if executed by MTI; provided that, when acting
                  in its capacity of attorney-in-fact, DMC Stratex shall advise
                  MTI in advance of any act or omission to act that may have a
                  Material Adverse Effect on the interest of MTI under this
                  Agreement).

         2.4.2.   Further Assistance by DMC Stratex. DMC Stratex agrees to
                  cooperate with MTI or its designee(s), at MTI's or its
                  designees' expense, both during and after the Term, in
                  applying for, obtaining, perfecting, evidencing, sustaining
                  and enforcing MTI's Intellectual Property Rights in and to the
                  MTI Know-How Improvements, including, without limitation,
                  executing such written instruments as may be prepared by MTI
                  and doing such other acts as may be necessary in the opinion
                  of MTI to obtain a patent, register a copyright, or otherwise
                  enforce the ownership of MTI in such MTI Know-How Improvement
                  (and DMC Stratex hereby irrevocably appoints MTI and any of
                  its officers and agents as its attorney in fact to act for and
                  on DMC Stratex's behalf of, and instead of DMC Stratex only
                  for the matter specifically provided for in this Section
                  2.4.2, with the same legal force and effect as if executed by
                  DMC Stratex; provided that, when acting in its capacity of
                  attorney-in-fact, MTI shall advise DMC Stratex in advance of
                  any act or omission to act that may have a Material Adverse
                  Effect on the interest of DMC Stratex under this Agreement).

3. CONSIGNED INVENTORY.

3.1. Inventory Transfer. Following the Effective Date, DMC Stratex will continue
to review and evaluate the Business Inventory to determine the scope and items
of the Consigned Business Inventory (as defined below). Such determination shall
be performed during the Transition Period and shall be substantially completed
by December 31, 2002. Following the determination of each batch of Business
Inventory, MTI will take possession of such batch of Business Inventory, less
(a) the Scrapped Business Inventory, (b) the Retained Inventory; (c) any of the
Business Inventory related to manufacture of the IDUs or accessories; and (d)
any other Business Inventory not required for Altium or XP4Plus+ production
(collectively, the "CONSIGNED BUSINESS INVENTORY"). MTI shall transport, or
arrange for the transportation, at MTI's cost, of all Consigned Business
Inventory from DMC Stratex's premises at 170 Rose Orchard Way, San Jose,
California 95134, United States of America and 482 South Abbott Street,

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Milpitas, California 95035, United States of America to MTI's premise located at
1 Innovation Road II, Science-Based Industrial Park, Hsinchu, Taiwan, or B15
Block 52, Wuxi State High & New Technology Industry Development Zone, Jiangsu,
People's Republic of China, as applicable (the "FACILITY") in accordance with
the terms, schedule and timeline provided for in the Transition Services
Agreement. MTI shall be responsible for obtaining the appropriate licenses or
permits (including, without limitation, shipping transport, customs and other
clearances) necessary to import the Consigned Business Inventory to Taiwan or
the PRC, as applicable, in accordance with Section 9.5.2 of this Agreement. No
later than three (3) business days before the first shipment of the Consigned
Business Inventory for such transfer to be made after the execution of this
Agreement, DMC Stratex shall provide MTI with a list of the Consigned Business
Inventory and the price for each item of such inventory; provided that such
price shall be (i) valued with adjustment based on [****]; (ii) net of [****],
and (iii) subject to MTI's review for accuracy, which shall be completed by the
date of shipment of the Consigned Business Inventory (such list being referred
to as the "CONSIGNMENT INVENTORY PRICING LIST"). MTI shall hold such Consigned
Business Inventory on a consignment basis pursuant to the terms of this Section
3 and any storage, control, management, insurance or other costs or expenses
relating to the Consigned Business Inventory after the delivery thereof to MTI
and up to the end of the Inventory Period shall be borne by MTI. If DMC Stratex
requests that MTI retain any Consigned Business Inventory after the end of the
Inventory Period or if any Consigned Business Inventory remains unsold after the
end of the Inventory Period, DMC Stratex shall pay for all reasonable storage,
control, management, insurance (provided that MTI shall cooperate with DMC
Stratex in procuring such insurance), and other costs and expenses related to
such retained Consigned Business Inventory, subject to Section 3.5.3 below.

3.2. Business Inventory Purchases by MTI. If DMC Stratex requests MTI to
manufacture Products pursuant to the terms hereof, MTI shall use the Consigned
Business Inventory in connection with the manufacture of the Products to the
fullest extent such Consigned Business Inventory can be used with the Products.
Each item of Consigned Business Inventory used by MTI to manufacture the
Products shall be deemed to be sold to MTI at the time MTI incorporates such
item of Consigned Business Inventory into a Product, and title to such item
shall not pass to MTI until such time. The price of any item of Consigned
Business Inventory shall be as set forth on the Consigned Inventory Pricing
List.

         3.2.1.   Payment. Payment for all Purchases set forth in the "Report of
                  Purchase" delivered pursuant to Section 3.6 hereof shall be
                  made by MTI to DMC Stratex, by wire transfer to DMC Stratex's
                  account at the bank of DMC Stratex's choice, no later than
                  forty (40) calendar days following the date of each Report of
                  Purchase; provided, that any receivables due from MTI for
                  Purchases shall be subject to the right of offset against
                  receivables due from DMC Stratex for the Products manufactured
                  by MTI and sold to DMC Stratex, described in Section 10.2
                  below.

         3.2.2.   Purchase. A "PURCHASE" of Consigned Business Inventory by MTI
                  hereunder shall occur, and Consigned Business Inventory shall
                  be "Purchased" (and title to Purchased Consigned Business
                  Inventory shall pass to MTI), when:

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                  3.2.2.1. any items of Consigned Business Inventory are
                           incorporated into Product (but only to the extent of
                           the items so incorporated);

                  3.2.2.2. any Consigned Business Inventory is destroyed, while
                           in storage at MTI's Facility; provided that an item
                           shall be deemed to be "destroyed" if the outer
                           appearance or physical form of the item has become
                           substantially ruined or deformed and thereby causes
                           it to lose its intended function; an item shall not
                           be deemed "destroyed" if the item has a latent defect
                           or other functional disorder or breakdown that cannot
                           be determined merely by its outer appearance or
                           physical form. Any defective item shall be referred
                           to herein as a "MALFUNCTIONAL ITEM." In case of any
                           Malfunctional Item, MTI shall (a) include the
                           necessary information in the monthly report required
                           under Section 3.6, and both parties shall negotiate
                           in good faith to determine the appropriate action to
                           be taken with respect to such Malfunctional Items;
                           and (b) provide reasonable support in reviewing and
                           dispositioning such Malfunction Items; or

                  3.2.2.3. this Agreement terminates or the Inventory Period
                           lapses, in which case all Consigned Business
                           Inventory in MTI's possession on the effective date
                           of the termination shall be deemed to have been
                           Purchased by MTI on the effective date of the
                           termination to the extent such Consigned Business
                           Inventory is not returned to DMC Stratex within sixty
                           (60) calendar days after the effective date of
                           termination or expiration of this Agreement or the
                           Inventory Period, subject to Section 3.5.

3.3. Storage of Consigned Business Inventory Prior to Purchase. Consigned
Business Inventory shall be considered to be "in storage" at a Facility of MTI
from the time of delivery by DMC Stratex to that Facility until such time as the
Consigned Business Inventory is Purchased by MTI or returned to DMC Stratex as
provided herein. MTI shall maintain all Consigned Business Inventory while in
storage in an area within MTI's Facility separate or identifiable from MTI's
other goods, whether owned by MTI or consigned or bailed from any other person
or entity. MTI shall store the Consigned Business Inventory carefully and
properly so as to protect the Consigned Business Inventory from loss or damage.
While the Consigned Business Inventory is in storage, MTI shall assume the risk
of loss or damage to it from any cause whatsoever. MTI shall ensure that, while
the Consigned Business Inventory is in storage, such Consigned Business
Inventory does not become subject to any lien or other security interest
securing any obligation owed or alleged to be owed by MTI to any person or
entity, except, however, MTI shall not be in material breach of this Agreement
for statutory liens which exist temporarily, solely by operation of law, because
payments have not yet been received in the ordinary course of business. MTI
shall have no right or power to sell, pledge, assign or otherwise dispose of the
Consigned Business Inventory; except for (i) Product sales permitted hereunder
that incorporate items of Consigned Business Inventory, (ii) Scrapped or Salvage
Sales pursuant to Section 3.5 hereof, or (iii) as otherwise agreed to in writing
by DMC Stratex. DMC Stratex shall have the right to inspect, no more frequently
than once a calendar month, the Consigned Business Inventory then in storage at
MTI's Facilities upon reasonable notice to MTI, and during regular business
hours; provided, however, that should any inspection or audit reveal a

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material problem with MTI's storage of the Cosigned Business Inventory, such
limitation on the frequency of the audit shall be deemed waived by the parties.
DMC Stratex and MTI shall conduct a joint review, at the end of the sixth (6th)
and twelfth (12th) months of the Inventory Period, of the status of the
Consigned Business Inventory, so as to determine which items thereof are beyond
their ordinary shelve lives or may otherwise become Scrapped or sold for Salvage
Sales (as both defined in Section 3.5), at a time earlier than expiration of the
Inventory Period. In the event DMC Stratex and MTI fail to reach an agreement as
to the status of certain Consigned Business Inventory, DMC Stratex shall make
the final decision. Upon the conclusion of any inspection, audit, or review,
both parties shall reconcile their books and records to correspond with the
findings.

3.4. Rework. Subject to DMC Stratex's prior approval for the cost of the rework,
DMC Stratex shall reimburse MTI for costs for the reworking that is reasonably
necessary in preparing any portion of Consigned Business Inventory for
incorporation into Products, and such reimbursement shall be due [****]
following the date of the Report of Purchase for the month in which such rework
occurs.

3.5. Scrapped Consigned Business Inventory and Salvage Sales; Retention of
Consigned Business Inventory. At the end of the Inventory Period, DMC Stratex
shall determine whether any remaining Consigned Business Inventory not
incorporated into Product is to be Scrapped, sold pursuant to a Salvage Sale,
retained pursuant to Section 3.5.3 below, or returned.

         3.5.1.   "SCRAPPED" shall mean the destruction of Consigned Business
                  Inventory that has not been incorporated into Product. Upon
                  approval by DMC Stratex, MTI shall destroy all Consigned
                  Business Inventory that is determined to be Scrapped at any
                  time before or upon expiration of the Inventory Period, and
                  such Scrapped Consigned Business Inventory shall be deemed to
                  be returned and not Purchased.

         3.5.2.   "SALVAGE SALE" shall mean the sale of Consigned Business
                  Inventory to a third party pursuant to the following terms:
                  Consigned Business Inventory sold only after the lapse of the
                  Inventory Period and upon written approval of DMC Stratex;
                  upon a third party's purchase of Consigned Business Inventory,
                  [****] of the proceeds shall be promptly remitted to DMC
                  Stratex and the remaining [****] shall be the property of MTI.

         3.5.3.   At DMC Stratex's request, which shall be made no later than
                  thirty (30) calendar days prior to the expiration of the
                  Inventory Period, in lieu of returning any Consigned Business
                  Inventory that remains unsold after the end of the Inventory
                  Period, MTI will retain such Consigned Business Inventory for
                  such time as DMC Stratex shall request prior to any
                  termination or expiration of this Agreement, and the
                  provisions of this Section 3 shall continue to apply to such
                  Consigned Business Inventory until it is Purchased, Scrapped,
                  sold pursuant to a Salvage Sale, or returned to DMC Stratex
                  (as DMC Stratex shall determine in its sole discretion),
                  except that DMC Stratex shall pay for all reasonable storage,
                  control, insurance (provided that MTI shall cooperate with DMC
                  Stratex in procuring such insurance), management or other
                  costs or expenses related to any retained Consigned Business
                  Inventory.

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3.6. Report of Purchase. MTI shall provide to DMC Stratex, within three (3)
business days after the tenth (10th) business day of every month, a record for
the applicable calendar month of the following ("REPORT OF PURCHASE"):

         3.6.1.   quantity of Consigned Business Inventory Purchased;

         3.6.2.   shipment of Product to DMC Stratex or DMC Stratex's customers
                  and/or distributors, as applicable, identifying the person or
                  entity receiving the shipment (if such person or entity is
                  known to MTI), the Product being shipped, and the quantity of
                  the Product being shipped;

         3.6.3.   the quantity and location of the balance of all Consigned
                  Business Inventory;

         3.6.4.   manufacturing or work-in-process stage of Products ordered by
                  DMC Stratex to the extent available;

         3.6.5.   other reports required by the Joint Services Agreement; and

         3.6.6.   any other reports requested by DMC Stratex, if agreed to by
                  MTI in advance, provided that such agreement shall not be
                  unreasonably withheld.

3.7. Audits. MTI shall allow DMC Stratex or its representative to audit and
analyze relevant records of MTI to ensure compliance with the Obligations
pursuant to the following terms.

         3.7.1.   Such audits will be permitted within three (3) weeks of MTI's
                  receipt from DMC Stratex of a written request to audit;

         3.7.2.   Such audits will be conducted during normal business hours at
                  a time on which the parties have mutually agreed and shall not
                  interfere unreasonably with MTI's business activities
                  conducted at MTI's Facilities; and

         3.7.3.   DMC Stratex's costs and expenses related to such audits shall
                  be borne by DMC Stratex unless such audit uncovers a Material
                  Discrepancy, as reasonably established in an audit report
                  provided to MTI, in the records required pursuant to Section
                  3.6 above, in which case all costs and expenses shall be borne
                  solely by MTI. For the purposes of this Section, a "MATERIAL
                  DISCREPANCY" is a discrepancy that results in the adjustment
                  of payments of more than [****] of the amount due for that
                  monthly report. Upon MTI's receipt and confirmation of a
                  written request by DMC Stratex, MTI shall remit payment, due
                  and payable together with the immediately next payment for the
                  Purchase, for the amount of any discrepancy and the costs and
                  expenses of the conduct of an audit, if provided for in this
                  Section.

3.8. Consignment Security Interest.

         3.8.1.   The parties acknowledge that even though title to items of the
                  Consigned Business Inventory does not pass to MTI until such
                  items

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                  are Purchased, the consignment of the Consigned Business
                  Inventory under this Agreement constitutes under the UCC the
                  creation of a "security interest" therein in favor of DMC
                  Stratex as a "secured party" (as such terms are defined in the
                  UCC). In furtherance but not by way of a limitation thereof,
                  MTI hereby pledges, assigns and grants to and for the benefit
                  of DMC Stratex a security interest in the "Collateral"
                  described in subsection 3.8.2 below to secure payment and
                  performance of MTI's obligations under this Agreement (the
                  "OBLIGATIONS").

         3.8.2.   The "COLLATERAL" shall consist of all right, title and
                  interest of MTI in and to: the Consigned Business Inventory
                  not yet Purchased; the Consigned Business Inventory Purchased;
                  any products or goods to which the Consigned Business
                  Inventory becomes accessed or into which any Consigned
                  Business Inventory becomes commingled by virtue of
                  incorporation by manufacturing of the Product; and any
                  proceeds of any of the foregoing; provided, however, that
                  pursuant to Section 3.5.2, [****] of the proceeds of Consigned
                  Business Inventory sold pursuant to a duly approved Salvage
                  Sale shall not be deemed Collateral.

         3.8.3.   MTI shall, and hereby does authorize DMC Stratex to, execute
                  and file any and all instruments and documents (including UCC
                  financing statements and security interest registrations in
                  all relevant jurisdictions), that DMC Stratex reasonably deems
                  necessary or advisable to protect the rights, title and
                  interests of DMC Stratex in and to the Collateral. Further,
                  should the execution or filing of any such document require
                  action by MTI, MTI shall execute and file any and all
                  documents MTI reasonably requested by DMC Stratex as being
                  necessary or advisable to protect the rights, title and
                  interests of DMC Stratex in and to the Collateral.

         3.8.4.   If any of the events specified in Section 16.2 ("Termination")
                  hereof occurs as to MTI, then DMC Stratex shall have all
                  rights and remedies provided to a secured party with respect
                  to the Obligations and/or the Collateral that are provided by
                  applicable law, including, without limitation, all rights and
                  remedies of a secured party under the UCC and the Security
                  Agreement, which remedies are incorporated herein as if
                  restated in full. Such rights and remedies and all other
                  rights, powers and remedies of DMC Stratex hereunder are
                  cumulative and in addition to all rights, power and remedies
                  provided under any and all agreements between DMC Stratex and
                  MTI, at law, in equity or otherwise. Any delay or failure by
                  DMC Stratex to exercise any right, power or remedy shall not
                  constitute a waiver thereof by DMC Stratex, and no single or
                  partial exercise by DMC Stratex of any right, power or remedy
                  shall preclude other or further exercise thereof or any
                  exercise of any other rights, powers or remedies.

3.9. Inventory Incentive Program. The parties shall work together to develop a
plan to provide incentives to MTI to use the Consigned Business Inventory as set
forth in more detail on Exhibit K ("Inventory Incentive Program"); provided that
DMC Stratex

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shall use commercially reasonable efforts to plan and issue Purchase Orders for
Products for which such Consigned Business Inventory may be used.

4. MANUFACTURING PERIOD.

4.1. Specifications. DMC Stratex shall provide Specifications for the Products
in accordance with the schedule set forth on Exhibit D.

4.2. Changes to the Specifications. DMC Stratex is entitled to request
modifications in the form of changes or additions to the Specifications at any
time during the Term. Such requests shall be submitted by DMC Stratex to MTI in
writing for MTI's prior consent before implementation of any such modifications,
which consent shall not be unreasonably withheld (as further provided for in the
Joint Service Agreement). If such modifications require additional expenditures
of time, cost or effort by MTI, MTI shall advise DMC Stratex, within [****] of
DMC Stratex's request for modification, of the impact on the Schedule and upon
any recurring and non-recurring manufacturing cost for the Product. The parties
shall make a good faith effort to negotiate and agree upon any change which may
apply to the unit price of the Product within [****] from the date of MTI's
response to DMC Stratex's notification of the proposed engineering change, and
this Agreement shall be amended accordingly. DMC Stratex shall reimburse MTI, in
accordance with Section 10.1 of this Agreement, any and all out of pocket costs
and expenses incurred by MTI in implementing such modifications requested by DMC
Stratex, whether a recurring or non-recurring expense, provided that MTI obtain
DMC Stratex's prior written approval prior to incurring such expense. DMC
Stratex shall not be obligated to reimburse MTI for any employee time expended
in evaluating such modification. If such modifications do not require MTI's
expenditure of additional time, cost, or effort, MTI will develop the Product to
conform to such modification of the Specifications at no additional charge and
with no change in the Schedule. Implementation of changes may require, at DMC
Stratex's cost, first article verification and acceptance in accordance with
Section 5 ("Acceptance and Rejection of Deliverables"). Upon receipt of DMC
Stratex's written approval, MTI will proceed with implementation of the
prescribed changes, and the Specifications and the Schedule will be updated to
reflect such changes.

4.3. Configuration Control. MTI shall not make or incorporate any change in the
Specifications for the Products which affects form, fit, function, regulatory
approvals, interface, interchangeability, reliability or maintainability,
without the prior written approval of DMC Stratex. All Components used in
production of Products shall be listed on DMC Stratex's Approved Manufacturers
List, containing DMC Stratex's part number and approved vendors for that
component (hereinafter "AML"). The up-to-date version of the AML shall be made
available to MTI by DMC Stratex in a PDM database format on the Agile system.
MTI must put systems in place within its quality system to ensure that all
components purchased for use in production of Products are in compliance with
the AML. MTI shall remain liable for any material purchased by MTI or any third
party purchasing agent on behalf of MTI that is at variance with DMC Stratex's
AML.

4.4. Tooling. Except for the Products identified in Section 3 of Exhibit B, MTI
is responsible for all of the process tooling, assembly tools and test fixtures
necessary or appropriate to manufacture the Products, except for tools consigned
by DMC Stratex; provided that DMC Stratex shall provide reasonable assistance to
MTI in the design, manufacture, procurement or supply of any of the process
tooling, assembly tools and test fixtures. DMC Stratex shall have the option to
pay for the development of all

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process tooling, assembly tools, test fixtures developed after the date hereof
by either party exclusively for the manufacture of the Product ("DMC STRATEX
EXCLUSIVE TOOLING"). In the event DMC Stratex pays for such development, DMC
Stratex shall own all right, title and interest in and to all DMC Stratex
Exclusive Tooling, including, without limitation, all Intellectual Property
rights therein, and MTI shall not use DMC Stratex Exclusive Tooling for any
purpose, other than the manufacture of Products or performance of Services for
DMC Stratex, or as otherwise permitted in writing by DMC Stratex. In the event
DMC Stratex elects not to exercise its option to pay for the development of the
DMC Stratex Exclusive Tooling, MTI may pay for such development, and in such
event, MTI shall solely own all right, title and interest, without any
restriction, in and to all DMC Stratex Exclusive Tooling, including, without
limitation, all Intellectual Property rights therein.

4.5. Joint Services Agreement. The day to day activities of the parties and the
responsibility and obligations of each party in the manufacturing of the
Products shall be set forth in more detail in the Joint Services Agreement. To
the extent any terms or conditions of the Joint Services Agreement conflict with
any terms or conditions set forth herein, the terms and conditions of this
Agreement shall control.

4.6. Reviews and Progress Reports.

         4.6.1.   Deliverables. During the Manufacturing Period, MTI will
                  provide DMC Stratex with Deliverables in accordance with the
                  Schedule set forth on Exhibit D attached hereto.

         4.6.2.   Progress Reports. During the Manufacturing Period, MTI will
                  provide DMC Stratex with written progress reports, as
                  requested by DMC Stratex, starting one (1) month after the
                  Effective Date and ending on the date of DMC Stratex's final
                  acceptance of all Deliverables in accordance with Section 5
                  hereof. The foregoing obligation shall not apply with respect
                  to any unit of Altium Product which MTI has already
                  manufactured or sold to DMC Stratex prior to the Effective
                  Date. Commencing on the Effective Date and during the Term,
                  MTI shall provide DMC Stratex with a progress report that
                  shall indicate progress of all Products manufactured or
                  supplied pursuant to this Agreement, which report shall
                  contain the following information: (a) status of progress of
                  the Products as measured against the scheduled Milestones; (b)
                  a short description of problems in meeting any Milestone; (c)
                  proposed recovery method to meet the next Milestone if
                  necessary; (d) probability of meeting the next Milestone; and
                  (e) any other information regarding the progress as reasonably
                  requested by DMC Stratex.

         4.6.3.   Reviews. DMC Stratex is entitled to conduct periodic reviews,
                  especially during the Manufacturing Period, to ensure its
                  satisfaction with the manufacture of the Products. During
                  normal business hours, upon reasonable notice to MTI, DMC
                  Stratex shall have the right, but not the obligation, to (a)
                  inspect the Services provided by MTI pursuant to this
                  Agreement; (b) inspect and test, at DMC Stratex's own expense,
                  MTI's manufacturing facilities in which the Products are being
                  manufactured, and any vehicles, containers or other equipment
                  used in providing Services, including, without limitation, any
                  areas where

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                  Components or Products are stored, handled, packaged, or
                  manufactured; and (c) inspect and obtain copies of licenses,
                  authorizations, approvals or written communications from any
                  governmental entity or agency applicable or related to
                  Services.

4.7. Placement of Trademarks. DMC Stratex may require that MTI place DMC Stratex
Trademarks on the Products. Any use or placement of such markings and
identification shall be strictly in accordance with the requirements of DMC
Stratex as set forth in the DMC Stratex Trademark Guidelines, as provided to MTI
and as may be updated from time to time by DMC Stratex. MTI shall provide
mock-ups and other samples to DMC Stratex for approval in advance of actual
production of the Products, provided that the costs and expenses for such
mock-ups and samples shall be apportioned between DMC Stratex and MTI upon good
faith negotiation. MTI is not authorized to use the DMC Stratex Trademarks on
any products, other than Products ordered by and delivered to DMC Stratex, or
for any other purpose.

         4.7.1.   Trademark License. Subject to the terms and conditions of this
                  Agreement and during the Term, DMC Stratex hereby grants to
                  MTI, and MTI hereby accepts, a non-exclusive,
                  non-transferable, non-sublicensable, royalty-free, fully
                  paid-up, limited right and license to use the DMC Stratex
                  Trademarks solely to fulfill its obligations pursuant to this
                  Agreement. This license shall terminate on the earlier of
                  termination or expiration of this Agreement or failure of MTI
                  to maintain the quality requirements set forth in this
                  Agreement. MTI shall obtain no rights or interest, of any
                  kind, in and to the DMC Stratex Trademarks, other than those
                  limited rights set forth in this Section.

         4.7.2.   Trademark License Restrictions. MTI shall apply DMC Stratex
                  Trademarks as specified in the Specifications and in strict
                  accordance therewith and shall not (a) apply to register any
                  trade name, trademark or other identifier associated with DMC
                  Stratex in any jurisdiction; (b) use for any purpose any name
                  or mark similar to or capable of being confused with any trade
                  name or trade mark or other identifier associated with DMC
                  Stratex or DMC Stratex's products from time to time, except as
                  permitted pursuant to this Agreement; or (c) challenge or
                  oppose DMC Stratex's ownership of or rights to use or register
                  any DMC Stratex Trademarks.

4.8. Manufacturing Services. Subject to the terms and conditions of this
Agreement and during the Term, MTI shall complete, in a timely manner and in
accordance with the professional standards generally applicable in the relevant
industry, all Services necessary to manufacture the Product in conformance with
Specifications, in accordance with the Schedule, and in accordance with the
quality and reliability standards set forth on Exhibit F. MTI shall provide all
technology (except for DMC Stratex Know-How), labor, materials, Purchased
Assets, and facilities necessary to manufacture the Product, and if applicable,
the DMC Stratex Exclusive Tooling. In the process of providing the Services, MTI
shall deliver all Deliverables in accordance with the Milestones set forth on
Exhibit D.

4.9. Changes In Process or Method of Manufacturing. During the Term, MTI agrees
that it will not make material changes, without DMC Stratex's prior written
consent (which consent shall not unreasonably withheld), in the process or
method of

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manufacturing, including, without limitation, any changes to the form, fit,
function, regulatory approvals, interface, interchangeability, reliability or
maintainability of the manufacturing process. MTI further agrees that any
contemplated changes in process or method of manufacturing will be submitted to
DMC Stratex in sufficient time to provide DMC Stratex with a reasonable
opportunity in which to evaluate such changes, as set forth in more detail in
the Joint Services Agreement. DMC Stratex may request that MTI utilize, at DMC
Stratex's cost, specific material or parts for the manufacture or assembly of
Products, or change the manufacturing process provided. DMC Stratex's request
shall be in accordance with this Agreement.

4.10. ESD REQUIREMENTS. For static devices which are static sensitive and
capable of being degraded, damaged, or destroyed by electrostatic charges or
discharges, (a) all items shall be preserved, packaged, and stored in such a
manner as to prevent exposure to the generation or discharge of electrostatic
voltages, (b) processed and handled at a minimum, in accordance with JEDEC
Publication #JEP108-B (April, 1991), and (c) MTI shall maintain a documented
system for the control and handling of static-sensitive materials.

5. ACCEPTANCE AND REJECTION OF DELIVERABLES.

5.1. Delivery of Deliverables. MTI shall deliver to DMC Stratex all Deliverables
set forth on Exhibit D. "DELIVERY" shall be deemed to have occurred when MTI
delivers a set of testable Deliverables to DMC Stratex, accompanied by a written
statement listing the Deliverables delivered and stating that they are ready for
DMC Stratex's acceptance testing.

5.2. Acceptance Testing.

         5.2.1.   First Article Process. Within [****] after receipt of any
                  Deliverable, DMC Stratex, with the assistance of MTI if
                  reasonably requested by DMC Stratex, will examine and test
                  each Deliverable to determine whether the Deliverable conforms
                  to the Specifications for such Deliverable. This process shall
                  require MTI to subject the first articles from the production
                  process to one hundred percent (100%) verification for visual,
                  mechanical, and electrical requirements of the controlling
                  document. This process shall conform to the "FIRST ARTICLE
                  PROCESS" set forth on Exhibit D. (If the changes are
                  implemented by a sub-tier supplier to MTI, it is MTI's
                  responsibility to perform the First Article Process with that
                  sub-tier supplier). The results of the First Article Process
                  shall be maintained by MTI and a copy of the results shall be
                  forwarded to DMC Stratex's Purchasing Department. When the
                  First Article conforms to the First Article Process, MTI shall
                  complete all first article documents and submit samples and
                  documents to DMC Stratex for approval. Within [****] after
                  such delivery, DMC Stratex will provide MTI with written
                  acceptance of such Deliverable, provided that such Deliverable
                  conforms to the Specifications, or a written statement of
                  Errors (the "STATEMENT OF ERRORS") to be corrected prior to
                  DMC Stratex's payment of the amount due upon DMC Stratex's
                  acceptance of the Deliverables. In the event a Deliverable
                  fails to conform to Specifications in a negligible manner, DMC
                  Stratex may accept MTI's corrections to such Deliverable,
                  without initiating the Deliverable correction process set
                  forth in Section 5.2.2 of this Agreement.

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                  "ERRORS" mean (a) defects in the Product which causes it not
                  to operate in conformance with the Specifications; (b) defects
                  in the documentation which render it inaccurate, erroneous or
                  otherwise unreliable; or (c) any aspect of any Deliverable
                  which fails to conform to the Specifications.

         5.2.2.   Correction of Deliverables. In the event DMC Stratex rejects
                  any Deliverable, MTI will promptly correct the Errors existing
                  in any Deliverable set forth in the Statement of Errors and
                  redeliver the Deliverable to DMC Stratex within [****], or
                  within [****] if reprocessing of prototypes is required, after
                  receipt of the Statement of Errors. Within [****] after such
                  redelivery, DMC Stratex will provide MTI with written
                  acceptance or another Statement of Errors. The procedure set
                  forth in this Section 5.2.2 will be repeated until DMC Stratex
                  either accepts the Deliverables or terminates this Agreement
                  pursuant to Section 16.2 below.

         5.2.3.   Rejection. Should DMC Stratex reasonably determine, prior to
                  acceptance, that any Deliverable fails to meet Specifications
                  after the second redelivery of that Deliverable pursuant to
                  Section 5.2.2, DMC Stratex may terminate its obligations under
                  Section 6.2 ("DMC Stratex's Exclusivity") only with respect to
                  the particular Product for which such Deliverable applies,
                  without incurring any liability for such termination.

6. EXCLUSIVITY.

6.1. MTI's Exclusivity. MTI shall not sell or transfer any (a) Product, (b) any
sub-assembly component thereof proprietary to DMC Stratex, (c) any documentation
or information which constitutes or incorporates DMC Stratex's Know-How, or any
portion thereof, or (d) DMC Stratex Exclusive Tooling (provided DMC Stratex owns
all rights, title and interests in and to such tooling) to any third party,
without DMC Stratex's prior written consent. This Section 6.1 shall survive any
expiration or termination of this Agreement.

6.2. DMC Stratex's Exclusivity. Provided that MTI satisfies: (a) DMC Stratex's
performance, quality and quantity requirements; and (b) the requirements and
other terms of the Joint Services Agreement, DMC Stratex agrees that it will not
purchase from any third party or engage any third party for the manufacture of
Products during the Term; except, however, (i) DMC Stratex shall have the right
to purchase Products, Components, or any portion thereof, from DMC Stratex's
existing suppliers during the outstanding term of such suppliers' agreements
with DMC Stratex, existing as of the Effective Date hereof; and (ii) DMC Stratex
may purchase the Altium 11, 13 and 15 GHz Products from third party suppliers
during the Term.

6.3. Right of First Discussion. If DMC Stratex in the future desires to
manufacture additional products that are designed or developed by DMC Stratex
that are not provided for under the terms and conditions of this Agreement
("ADDITIONAL PRODUCTS"), DMC Stratex shall present to MTI a request for proposal
to have such Additional Products manufactured by MTI, prior to providing such
request for proposal to a third party, and to discuss with MTI the manufacturing
of such Additional Products by MTI.

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6.4. Non-Competition. As long as MTI is supplying the Products under this
Agreement and for a period of [****] after the expiration or termination of this
Agreement (or an extension or renewal of this Agreement), MTI will not compete
with DMC Stratex in DMC Stratex's efforts to market or sell the XP4, Altium or
any other Products covered by this Agreement, except where the termination of
this Agreement is caused by DMC Stratex's material breach or where the
termination results from DMC Stratex's bankruptcy, in accordance with Section
16.3.

7. PRICING AND PURCHASE ORDERS.

7.1. Purchase Orders. Subject to the terms and conditions of this Agreement, MTI
agrees to accept purchase orders for the Products provided by DMC Stratex on DMC
Stratex's standard purchase order forms ("PURCHASE ORDERS"), and to sell the
Products to DMC Stratex pursuant to the terms and conditions of this Agreement.
Each Purchase Order shall specify the delivery dates, quantity, model number and
description of the Products to be purchased. Upon MTI's acceptance of the
Purchase Order in writing (such acceptance not to be unreasonably withheld),
each Purchase Order shall constitute a firm and binding contract. The terms and
conditions of this Agreement replace in their entirety any and all of the
pre-printed purchase order terms and conditions appearing on the Purchase Orders
and any MTI order confirmation or acknowledgment. MTI shall have [****] to
provide DMC Stratex with written notice of acknowledgement, acceptance or
rejection (which may be made together with a proposed modification to the
quantity or delivery schedule offered in the Purchase Order) of the Product
delivery schedule set forth in the Purchase Order. Failure to acknowledge or
reject (or modify, if applicable) such Purchase Order within such [****] period
shall be deemed an acceptance of such Purchase Order.

7.2. Change Order. Without notice to assignees, DMC Stratex may change the
method of shipment or packing, and/or change the place of delivery set forth in
any Purchase Order by written change order ("CHANGE ORDER") at any time,
provided that DMC Stratex shall notify MTI of any change to the method of
shipment or packing, and/or place of delivery set forth in a Purchase Order at
least [****] prior to the original shipment date. If any such change causes an
increase or decrease in the cost of or the time required to perform under the
Purchase Order, an equitable adjustment shall be made in the Purchase Order
price or delivery schedule or both, and the Purchase Order shall be modified in
writing accordingly. MTI has [****] to give DMC Stratex written notice of
acknowledgement of any Change Order. Failure to acknowledge or reject (or
modify, if applicable) the Change Order within such [****] period shall be
deemed an acceptance of the Change Order.

7.3. Pricing. MTI shall supply Products to DMC Stratex at the established prices
set forth on Exhibit H and the reduction formula set forth on Exhibit I. The
resulting price shall be referred to herein as the "PRICE." The Prices are in
U.S. dollars, and it is the responsibility of MTI to hedge against any of MTI's
cost changes which may result from a fluctuation of currency exchange rates.

7.4. Cost Saving Efforts. MTI shall reduce the cost periodically in good faith
based on DMC Stratex's purchase volume, as set forth in more detail on Exhibit
I, and shall make mutual effort at cost improvements, in accordance with
principles set forth on Exhibit I.

7.5. Termination of Purchase Order For Default. It is understood and agreed that
time is of the essence in any Purchase Order or any extension thereof effected
by any

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Change Order. DMC Stratex may terminate any Purchase Order by written notice, in
whole or in part, if (a) MTI fails to make delivery of the Product or to perform
the Services within [****] of the agreed-upon delivery schedule specified in the
Purchase Order or the applicable Change Order, (b) MTI fails to replace or
correct defective Products in accordance with Section 9.3 ("Inspection upon
Delivery") or Section 12.2 ("In-Warranty Repair"); (c) MTI fails to perform any
of the provisions of the Purchase Order or to so fail to make progress as to
endanger performance in any material respect in accordance with the terms
thereof, or (d) if MTI becomes insolvent, admits in writing its inability to pay
its debts in general as they mature, files a voluntary petition to bankruptcy,
makes an assignment for the benefit of creditors or if a petition under
bankruptcy is filed against it, and if the foregoing condition is not removed or
petitions not dismissed within [****].

7.6. Termination of Purchase Order For Convenience. DMC Stratex may terminate
any Purchase Order, in whole or part, at any time, by giving written notice to
MTI specifying the extent to which performance under the Purchase Order is
terminated. Immediately upon receipt of such notice, MTI shall stop performing
under the Purchase Order, and within six (6) weeks after such notice, MTI shall
submit to DMC Stratex its written termination claim. Failure of MTI to submit
its termination claim as provided herein shall constitute an unconditional and
absolute waiver by MTI of any claim arising from DMC Stratex's notice
termination, except where the damage or claim in connection with such
termination is not assessable or determinable within such six (6) week period
but only if MTI submits such damage claim as soon as it is finally assessed or
determined. MTI shall reasonably assess its damage to determine whether or not
any excess items may be used by MTI for the manufacture of associated products
or diverted for any other purpose, and to correspondingly reduce MTI's
termination claim by the value of such items, and MTI shall exercise
commercially reasonable effort to so divert or otherwise dispose of such items
to reduce its termination claim. When settlement has been made, title to any
such items determined not useable by MTI and charged to DMC Stratex in the
termination claim shall vest in DMC Stratex upon payment of the claim and
forthwith be delivered to DMC Stratex at DMC Stratex's expense, under DMC
Stratex's shipping instructions; provided that MTI shall be entitled to dispose
of such items at its own discretion if DMC Stratex does not instruct on delivery
to DMC Stratex or other disposition of such items within six (6) months after
the settlement of the termination claim. In no event shall MTI be entitled to
incidental or consequential damages, attorney's fees or agent's commissions as a
result of DMC Stratex's termination in accordance with this Section 7.6. DMC
Stratex reserves the right to verify claims hereunder, within sixty (60)
calendar days after receipt of MTI's termination claim, and MTI shall make
available to DMC Stratex upon its request, all relevant books, records,
inventories and facilities for DMC Stratex's inspection and audit. DMC Stratex
shall not unreasonably withhold, and shall promptly pay within five (5) calendar
days following MTI's termination claim, the undisputed compensation or payment
for the damages arising from DMC Stratex's termination for convenience set forth
in this Section 7.6. During a period of one (1) year following the payment of
damage claim to MTI, DMC Stratex shall have the right to inspect and audit, or
have inspected and audited, all relevant books, records, inventories and
facilities of MTI to ascertain such damage claim submitted by MTI pursuant to
this Section 7.6. If any audit reveals that MTI materially overstated its damage
claim, MTI shall immediately pay DMC Stratex the amount overstated, and MTI
shall bear the cost of the audit.

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8. FORECAST AND LIABILITY.

8.1. Forecast. DMC Stratex will issue a forecast of the expected demand for the
Products for [****], such forecast to be updated on or before the 5th business
day of each month. DMC Stratex will issue Purchase Orders for the delivery of
the Product for the first [****] of that [****] forecast. MTI shall procure any
Long-Lead Time Components in good faith against DMC Stratex's forecast for the
remaining [****] of the [****] forecast. In no event shall DMC Stratex be liable
to MTI for the purchase of any non-cancellable, non-returnable Long-Lead Time
Components for more than [****] of DMC Stratex's total price under the remaining
[****] of the [****] forecast, provided, however, that MTI shall use its best
efforts to cancel, return or to find alternate uses for any Long-Lead Time
Components.

8.2. Delayed Shipments. DMC Stratex may request MTI to delay shipment of any
Products for only up to [****] beyond the original shipment date, at no cost to
DMC Stratex. The maximum allowable delayed shipments will not exceed [****] of
the [****] scheduled shipments. Any shipment delayed at DMC Stratex's request
for [****] or more than the original shipment date shall be fully paid by DMC
Stratex to MTI at its total price in the applicable Purchase Order, regardless
of whether the shipment has been delivered to DMC Stratex or DMC Stratex's
customers, and payment for such shipment shall be due and payable in accordance
with Section 10.1 of this Agreement. Upon such payment, title to Products in
such delayed shipment will fully vest in DMC Stratex. MTI shall issue the
invoice for such delayed shipment upon the earlier of: (a) the shipment date of
the Products; and (b) the expiration of such [****] period.

8.3. Liability Reports. MTI will provide to DMC Stratex on a monthly basis a
liability report detailing by part number the amount of liability incurred by
MTI due to cancellation or delay by DMC Stratex.

8.4. Excess Materials. "EXCESS MATERIALS" mean those excess components,
purchased by MTI in response to DMC Stratex's Forecast, which cannot be
incorporated into the Products because of DMC Stratex's terminations,
rescheduling or other delays caused by DMC Stratex, and which cannot be returned
to the supplier for a refund. MTI will notify DMC Stratex of the amount and
dollar liability of any Excess Materials in a consolidated monthly report. The
parties will jointly review the status of Excess Materials on a quarterly basis,
and will decide what action to take with respect to such Excess Materials
semiannually. Reimbursement or compensation to MTI by DMC Stratex for the value
of such Excess Materials shall be made on a semi-annual basis, no later than
thirty (30) calendar days after DMC Stratex's receipt of MTI's monthly reports
(reconciled to the parties' joint quarterly review) of such Excess Materials for
the preceding six months. MTI will mitigate the cost of such Excess Materials by
working with its suppliers to obtain the lowest possible liability.

8.5. Obsolete Materials. "OBSOLETE MATERIALS" mean those unique materials that
MTI ordered in response to DMC Stratex's Purchase Orders or Forecast, which MTI
has on hand, but which can no longer be used by MTI pursuant to this Agreement.
On a monthly basis, MTI will send (under separate cover from the Excess
Materials report) a report, which identifies MTI's purchase cost for such
Obsolete Materials. The parties shall jointly review and discuss the appropriate
reimbursement or compensation to MTI for such Obsolete Materials on a quarterly
basis. Reimbursement or compensation to MTI by DMC Stratex for the value of such
Obsolete Materials shall be made on a semi-annual basis, no later than thirty
(30) calendar days after DMC Stratex's receipt of MTI's

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monthly reports (reconciled to the parties' joint quarterly review) of such
Obsolete Materials for the preceding six months. MTI will mitigate the cost of
such Obsolete Materials by working with its suppliers to obtain the lowest
possible liability.

8.6. MTI's Obligation to Notify DMC Stratex of Discontinued Materials. MTI shall
promptly notify DMC Stratex of any plans by a third party supplier to
discontinue the manufacture or supply of any Component or accessories to be
incorporated into the Product, to the extent MTI, or any of any of its
affiliates, becomes aware of such discontinuance. MTI shall use best efforts to
provide notice sufficient to allow DMC Stratex to make alternate arrangements to
procure such Component or accessory.

9. PACKING AND SHIPPING.

9.1. Packing. Unless otherwise specified, all Products shall be packed,
packaged, marked and otherwise prepared for shipment in a manner which is: (a)
in accordance with good commercial practice, (b) acceptable to common carriers
for shipment at the lowest rate for the particular Product and in accordance
with all governmental regulations, and (c) adequate to ensure safe arrival of
the Product at the named destination and for storage and protection against
weather. An itemized packing sheet must accompany each shipment unless otherwise
specified.

         9.1.1.   All orders shall be shipped complete by a single shipment or a
                  number of shipments, unless otherwise instructed by DMC
                  Stratex. MTI shall immediately give DMC Stratex oral advice of
                  any prospective failure to ship the specified quantity of
                  Products in time to meet the scheduled delivery date. Should
                  only a portion of the Products be available for shipment by
                  the delivery date, MTI shall consult with DMC Stratex to
                  obtain delivery instructions. Where DMC Stratex permits MTI to
                  make partial shipments (such permission not to be unreasonably
                  withheld), the shipments shall be applied against completion
                  of the oldest open Purchase Order first.

         9.1.2.   If MTI ships any Product by a method other than as specified
                  in the corresponding Purchase Order, MTI shall pay any
                  resulting increase in the cost of freight incurred over the
                  cost of freight which would have been incurred had MTI
                  complied with DMC Stratex's shipping instructions, except
                  where such a variation in the method of shipment results from
                  a Change Order pursuant to Section 7.2, in which event, such
                  cost shall be borne by DMC Stratex.

         9.1.3.   If solely due to MTI's failure to make timely shipment, the
                  specified method of transportation would not permit MTI to
                  meet the scheduled delivery date, the Products affected shall
                  be shipped by air transportation or other expedient means
                  reasonably acceptable to DMC Stratex. In such circumstance,
                  MTI shall pay for any resulting increase in the freight cost
                  over that which DMC Stratex would have been required to pay if
                  the specified method of transportation was used.

         9.1.4.   If MTI ships more Products than ordered in the Purchase Order,
                  the amount of over-shipment may, at DMC Stratex's option,
                  either be kept by DMC Stratex for credit against future
                  shipments or returned to MTI

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                  at MTI's expense. DMC Stratex will not be obligated to pay MTI
                  for any overshipment of the Products.

         9.1.5.   MTI shall obtain DMC Stratex's approval before making any
                  delivery more than ten (10) business days prior to the
                  scheduled delivery date. If MTI ships more than ten (10)
                  business days in advance of the scheduled delivery date
                  without DMC Stratex's approval, DMC Stratex may return the
                  Products to MTI at MTI's expense.

9.2. Delivery. Unless otherwise specifically provided on the face of the
Purchase Order, all Products shall be delivered on Ex Works (Incoterms 2000),
MTI's facility, freight collect.

9.3. Inspection Upon Delivery. Upon receipt of any Product delivery, DMC Stratex
shall have two (2) weeks to inspect and test such Product in accordance with the
procedures set forth on Exhibit E. If the Product is found to be defective in
material and workmanship, or if the Product does not conform to Specifications,
DMC Stratex shall have the right to reject such Product during such two (2) week
period. Product not rejected during such period shall be deemed accepted.
Rejected Product shall be replaced with conforming Product within two (2) weeks
after receipt of the rejected Product. DMC Stratex shall have the right to
inspect and test such replacement Product within two (2) weeks of delivery.

9.4. Rejection of Replacement Products. If any replacement Product provided to
DMC Stratex after rejection of the original Product pursuant to Section 9.3 is
found to be defective in material and workmanship, or if such replacement
Product does not conform to Specifications, DMC Stratex shall, at its option,
(a) afford MTI one or more extensions of time to correct the non-conformance for
a period to be specified by DMC Stratex, or (b) terminate the Purchase Order and
be entitled to a prompt and full refund of all amounts previously paid for such
Product, and notwithstanding Section 6.2 ("DMC Stratex's Exclusivity"), purchase
Product from a third party supplier.

9.5. Export and Import Responsibilities.

         9.5.1.   Exports from Taiwan. MTI shall be responsible for obtaining
                  the appropriate license or permits to clear Taiwan customs for
                  export. DMC Stratex will be responsible for supplying export
                  documents, letters of instruction and carrier routing for
                  transportation. MTI will furnish DMC Stratex with all
                  information necessary for DMC Stratex to timely generate
                  export documents.

         9.5.2.   Imports to Taiwan. MTI shall be responsible for obtaining the
                  appropriate licenses or permits (including, without
                  limitation, shipping transport, customs and other clearances)
                  necessary to import the Consigned Business Inventory to Taiwan
                  or the PRC, as applicable. Shipment of the Consigned Business
                  Inventory to Taiwan will be made on an Exworks (Incoterms
                  2000), DMC Stratex's facility, freight collect. DMC Stratex
                  will act as the "Principal Party of Interest" and will be
                  responsible for complying with the export laws of the United
                  States of America, and for generating export documents to
                  forwarder and/or carriers for shipment out of the United
                  States of America. MTI will designate the forwarder and pay
                  all freight and handling charges for such shipments.

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9.6. NAFTA. From time to time, MTI will be required to qualify shipments under
the North American Free Trade Agreement (NAFTA), and MTI, or its U.S.-based
designated affiliate, shall be designated as the importer of record. MTI will be
required to assemble and test materials in San Jose, California, United States
of America, in order to qualify finished Product as United States origin
materials. Expenses associated with these transactions for the Altium Product
shall be as set forth on Exhibit H and borne by DMC Stratex, and expenses
associated with these transactions for the XP4Plus+ Product shall be negotiated
by the parties in good faith. Records must be kept on NAFTA qualified Products
for DMC Stratex Networks and U.S. government inspection, as required.

10. PAYMENT.

10.1. Invoices. Unless DMC Stratex disputes the amount due on an invoice in good
faith, DMC Stratex shall pay MTI's invoices [****] from receipt thereof. Payment
of invoices shall not constitute acceptance of the Product and shall be subject
to adjustment for errors, shortages, and defects in the Product or other failure
of MTI to meet agreed-upon requirements of the Purchase Order.

10.2. Set-off. DMC Stratex may set off any amount owed by DMC Stratex to MTI
under this Agreement or the Asset Purchase Agreement against any amount owed by
MTI to DMC Stratex under this Agreement or the Asset Purchase Agreement,
provided that DMC Stratex shall notify MTI in advance of any such set-off.

11. WARRANTIES.

11.1. MTI General Warranty. MTI represents, warrants and covenants that: (a) MTI
has full power to enter into this Agreement and to carry out its obligations
under this Agreement; (b) each of MTI's employees, consultants, contractors or
any other third party who has been or will be involved in the development of the
Product will have executed an agreement with MTI conveying all proprietary
rights in and to the Product to MTI; and (c) MTI has the right to disclose or
use, without liability to others, all subject matter, including ideas,
inventions, creations, works, processes, designs and methods as developed by MTI
that MTI will disclose or use in performing the Services.

11.2. MTI Products Warranty. MTI represents, warrants and covenants that: (a)
all Products and Deliverables furnished hereunder shall meet the quality,
operating conditions and performance requirements described in the
Specifications and any applicable Purchase Order; (b) all Products shall be free
from defects in workmanship and material; (c) MTI has good and marketable title
to the Products to be furnished hereunder and there are no liens, claims or
encumbrances of any kind whatsoever against the Product manufactured by MTI for
DMC Stratex (other than the security interest in favor of DMC Stratex described
in Section 3.8); and (d) any MTI contributed portion of the Product shall not
infringe any Intellectual Property Rights of any third parties. If any Product
delivered hereunder does not meet the warranties specified in this Section 11.2
or otherwise as applicable, DMC Stratex may, at its election, require MTI to
promptly correct, at no cost to DMC Stratex, any defective or nonconforming
Products by repair or replacement, at MTI's facility for a period of [****] from
delivery ("WARRANTY PERIOD"), as set forth more fully in Section 12.2 herein.
The provisions of this clause shall not limit or affect the rights of DMC
Stratex under Section 9.3.

11.3. MTI Service Warranty. MTI represents, warrants and covenants that: (a) the
Services performed shall meet the quality, operating conditions and performance

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requirements described in the Specifications and any applicable Purchase Order;
(b) all Services shall be performed in accordance with professional standards,
generally applicable to the relevant industry; and (c) in connection with its
performance with its performance of Services, MTI will not infringe any
Intellectual Property Rights of any third party.

11.4. MTI Compliance with Laws Generally. MTI represents, warrants and covenants
that: (a) MTI shall comply with all Laws in all material respects as applicable
to its performance under this Agreement; and (b) MTI shall at all times perform
any Services safely and in a manner which shall minimize, to the greatest extent
possible, any threat of bodily injury or property damage, and shall enforce
compliance with the professional standards of safety applicable in the relevant
industry and accident prevention found under applicable Laws. Upon written
request by DMC Stratex, MTI agrees to execute and furnish a certification of
compliance, which may be on DMC Stratex's form reasonably acceptable to MTI and
which shall certify compliance with any applicable federal, state, local laws or
regulations, including, but not limited to, FLSA, EEOC, and OSHA, or their
equivalent.

11.5. DMC Stratex Warranty. DMC Stratex represents, warrants and covenants that
(a) DMC Stratex has full power to enter into this Agreement and to carry out its
obligations under this Agreement; (b) DMC Stratex has the right to disclose or
use, without liability to others, all subject matter, including ideas,
inventions, creations, works, processes, designs and methods that DMC Stratex
will disclose in conjunction with its performance under this Agreement; (c)
those portions of the Product designed by and proprietary to DMC Stratex do not
and will not infringe any Intellectual Property Rights of any third parties; (d)
the Consigned Business Inventory incorporated into the Products by MTI shall
meet the quality, operating conditions and performance requirements necessary
for manufacture of the Products in conformance with Specifications; (e) the
Consigned Business Inventory incorporated into the Products by MTI shall be free
from defects in workmanship and material during the Warranty Period, (f) DMC
Stratex has good title to the Consigned Business Inventory to be transferred to
MTI on a consignment basis, and there are no liens, claims or encumbrances of
any kind whatsoever against any of the Consigned Business Inventory (other than
the security interest in favor of DMC Stratex described in Section 3.8), and (g)
DMC Stratex shall comply with all Laws in all material respects as applicable to
its performance under this Agreement. In the event of a material breach of DMC
Stratex's warranty set forth in Section 11.5(d) or 11.5(e), MTI's sole and
exclusive remedy, and DMC Stratex's sole liability, for DMC Stratex's material
breach of Section 11.5(d) or 11.5(e) shall be for DMC Stratex to pay all
reasonable costs incurred by MTI to fix (if MTI decides to so fix) the defect in
the Consigned Business Inventory incorporated into the Product.

11.6. Disclaimer of Warranty. THE FOREGOING WARRANTIES SHALL CONSTITUTE
CONDITIONS AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESSED OR
IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT OF THIRD
PARTY RIGHTS. THE FOREGOING WARRANTIES SHALL SURVIVE ANY DELIVERY, INSPECTION,
ACCEPTANCE OR PAYMENT OF OR FOR THE PRODUCTS.

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12. REPAIRS AND DISCONTINUANCE.

12.1. Last Buy. In the event of termination or expiration of this Agreement for
any reason, DMC Stratex shall have the right to place, and MTI shall accept, a
final Purchase Order for Products at the then-current Prices pursuant to the
terms and conditions of this Agreement. This Agreement shall be deemed
terminated only upon MTI's satisfaction of its obligation pursuant to this
Section 12.1, at which time production of the Product shall be deemed
terminated, subject to Section 16.5 of this Agreement. The final Purchase Order
shall require all Products to be delivered within [****] of the final Purchase
Order date.

12.2. In-Warranty Repair. In the event DMC Stratex returns to MTI a
non-conforming Product, covered under the warranty set forth in Section 11.2,
MTI shall repair and return the non-conforming Product within ten (10) business
days of the receipt of such non-conforming Product. In the event MTI fails to
timely provide the foregoing remedy, MTI shall promptly issue a credit to DMC
Stratex for the returned non-conforming Product.

12.3. Out of Warranty Repair - During Term. Prior to DMC Stratex issuing a final
Purchase Order under Section 12.1 above, MTI shall repair out-of-warranty
Products at the prices set forth on Exhibit G. For out-of-warranty repairs, MTI
shall repair or replace such non-conforming Products within ten (10) business
days for [****] of the returned Products and within fifteen (15) business days
for the remaining [****] of the returned non-conforming Products.

12.4. After Term Support. For a period of not less than [****] years after the
earlier of (a) DMC Stratex's placement of a final Purchase Order under Section
12.1 above; and (b) the termination or expiration of this Agreement, MTI shall:
(i) maintain repair capability for such Product, to the extent that MTI's
suppliers or contractors, either named in the AML or otherwise, provide such
repair capability for the equivalent term (except, however, in the event such
other supplier or contractor ceases providing such services, MTI shall use best
efforts to locate alternate suppliers or contractors to provide such repair
capability), and (ii) make best efforts to work with DMC Stratex to determine a
mutually agreeable supply of spare parts for each Product, either from current
suppliers or alternate suppliers. Any spare parts provided pursuant to this
Section 12.4 will be materially equivalent to the original parts in form, fit
and function. Following DMC Stratex's issuance of a final Purchase Order, MTI
agrees to repair out-of-warranty Products at prices and in time frames to be
mutually agreed upon by the parties (and the parties agree to negotiate such
terms reasonably and in good faith). Except with respect to the foregoing
sentence, the terms of this Agreement will govern all repairs of Products. For
each Product, MTI shall provide a standard spare parts list.

12.5. Returns. All non-conforming Products repaired and returned to DMC Stratex
pursuant to this Section 12 shall be accompanied by a report that gives the
following details: (a) RMA reference number under which the unit/assembly was
returned; (b) Part Number and Serial number of the returned unit/assembly; (c)
Part number and description of the individual component causing the fault; (d)
Circuit Reference Designator of the defective component; (e) Part number of the
PCB sub assembly from which that the defective component was removed; (f)
Revision of the sub assembly; (g) Date of manufacture of the returned
unit/Assembly; (h) Root Cause Analysis of the unit/assembly defect (upon
request); and (i) any other information reasonably requested by DMC Stratex. MTI
shall provide to DMC Stratex a monthly report (including a soft

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copy) of historical trends, including, without limitation, a Pareto Analysis of
the root causes found.

13. INDEMNIFICATION; LIMITATION OF LIABILITY.

13.1. MTI Indemnification. MTI will indemnify, hold harmless, and, at DMC
Stratex's request, defend DMC Stratex, its directors and employees (collectively
"DMC STRATEX IMDEMNITEES") from and against any loss, cost, liability or expense
(including reasonable court costs and attorneys' fees) arising out of (a)
injuries or death to persons or damage to property in any way arising out of or
caused or alleged to have been caused by Services performed by, or Products
provided by, MTI, or any third party working under MTI's control or direction;
(b) any breach of any representation or warranty by MTI or failure of MTI to
perform its obligations under this Agreement; or (c) violation of any Law,
including, without limitation, any environmental laws, in any way arising out of
or caused or alleged to have been caused by MTI's Services or by any Product
provided by MTI (collectively "DMC STRATEX CLAIMS"). DMC Stratex agrees (i) to
notify MTI of any DMC Stratex Claim, (ii) if DMC Stratex has not requested that
MTI defend the DMC Stratex Claim, to permit MTI, at MTI's expense, to
participate in the defense thereof with counsel of MTI's choosing, and (iii) if
DMC Stratex has requested that MTI defend the DMC Stratex Claim, to provide MTI,
at MTI's sole expense, with all needed information, assistance and authority
necessary for MTI to do so. MTI shall not settle or compromise any DMC Stratex
Claim, without DMC Stratex's prior written approval, which approval shall not be
unreasonably withheld. DMC Stratex may, at its own option and expense, be
represented in any action or proceeding, arising from the DMC Stratex Claim, by
legal counsel of its own selection. If MTI has defended, or has assumed the
defense of the DMC Stratex Claim, either upon DMC Stratex's request or
otherwise, DMC Stratex shall not settle or compromise any DMC Stratex Claim
without MTI's prior written consent.

13.2. DMC Stratex Indemnification. DMC Stratex will indemnify, hold harmless,
and, at MTI's request, defend MTI, its directors and employees (collectively
"MTI IMDEMNITEES") from and against any loss, cost, liability or expense
(including reasonable court costs and attorneys' fees) arising out of (a)
injuries or death to persons or damage to property in any way arising out of or
caused or alleged to have been caused by DMC Stratex's design of Products or by
any third party working under DMC Stratex's control or direction; (b) any breach
of any representation or warranty by DMC Stratex or failure of DMC Stratex to
perform its obligations under this Agreement; or (c) violation of any Law,
including, without limitation, any environmental laws, in any way arising out of
or caused or alleged to have been caused by DMC Stratex or by DMC Stratex's
design of the Products (collectively "MTI CLAIMS"). MTI agrees (i) to notify DMC
Stratex of any MTI Claim, (ii) if MTI has not requested that DMC Stratex defend
the MTI Claim, to permit DMC Stratex, at DMC Stratex's expense, to participate
in the defense thereof with counsel of DMC Stratex's choosing, and (iii) if MTI
has requested that DMC Stratex defend the MTI Claim, to provide DMC Stratex, at
DMC Stratex's sole expense, with all needed information, assistance and
authority necessary for DMC Stratex to do so. DMC Stratex shall not settle or
compromise any MTI Claim, without MTI's prior written approval, which approval
shall not be unreasonably withheld. MTI may, at its own option and expense, be
represented in any action or proceeding, arising from the MTI Claim, by legal
counsel of its own selection. If DMC Stratex has defended, or has assumed the
defense of the MTI Claim, either upon MTI's request or otherwise, MTI shall not
settle or compromise any MTI Claim without DMC Stratex's prior written consent.

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13.3. Limitation of Liability. EXCEPT FOR ANY DAMAGES ARISING FROM BREACH OF
SECTION 1.2 ("RESTRICTIONS AND RESERVATION OF RIGHTS"), 4.7.2 ("TRADEMARK
LICENSE RESTRICTIONS"), 13.1 ("MTI INDEMNIFICATION"), 13.2 ("DMC STRATEX
INDEMNIFICATION") AND/OR 15 ("CONFIDENTIALITY") HEREOF, IN NO EVENT SHALL EITHER
PARTY BE LIABLE FOR: (A) SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES
OF ANY KIND, OR FOR ANY LOSS OF PROFITS, LOSS OF REVENUE, LOSS RESULTING FROM
INTERRUPTION OF BUSINESS, WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH
LOSS; OR (B) MONETARY DAMAGES COLLECTIVELY IN EXCESS OF [****] UNITED STATES
DOLLARS.

14. INSURANCE.

During the Term and for so long as any Products are available for sale in any
jurisdiction and so long as any Consigned Business Inventory, manufactured
Product, tooling, test fixtures or any other property of DMC Stratex ("DMC
PROPERTY") remain on MTI's site, in transit between sites, or otherwise in MTI's
care and custody, MTI shall maintain, at its sole cost and expense, such
insurance policy or policies which may be customary or required by law or by
regulation for the purposes of carrying out its general business activities as
well as its obligations under this Agreement. Such insurance shall include, at a
minimum, an adequate comprehensive insurance policy or policies from reputable
insurer(s) in sufficient amounts necessary to cover the value of such DMC
Property for any loss or damage thereto. Such insurance policy(ies) shall, to
the extent it is available in the general insurance market in Taiwan, cover
against "all risks", including earthquakes, theft, civil commotion, malicious
damage, fire, lightening and explosion, flood or general water damage, typhoon,
and any other insurable cause covered under such insurance policies.

MTI will provide DMC Stratex with copies of the insurance policies maintained
under this Section. To the extent permitted under the applicable policy(ies)
procured by MTI, MTI will name DMC Stratex as an additional insured and the
policy(ies) will contain a waiver of subrogation with respect to the additional
insured. MTI shall be responsible for the maintenance and renewal of all
policies required under this Section and may not cancel, terminate or curtail
the insurance policy(ies) in any manner without the prior express written
approval of DMC Stratex, which approval shall not be unreasonably withheld.

If MTI cannot or fails to obtain such insurance policy(ies), MTI shall
indemnify, defend, and hold harmless DMC Stratex against (a) any loss or damage
to DMC Property, to the extent such damage occurred as a result of an insurable
cause generally covered by such insurance policies; and (b) any claims made by
government regulatory bodies or other third parties, as a result of either (i)
any failure by MTI to maintain such insurance which may be required by law or by
regulation, or (ii) any claim filed by an employee of MTI or any third party due
to bodily injury or property damage caused by or in relation to the use, care or
handling of DMC Property. These indemnity provisions will survive any
termination or expiration of this Agreement.

15. CONFIDENTIALITY.

15.1. Definition of Confidential Information. "CONFIDENTIAL INFORMATION" means
any and all information and material disclosed by the disclosing party
("DISCLOSER") to the receiving party ("RECIPIENT") or obtained by Recipient
through inspection or observation of Discloser's property or facilities (before
or after the signing of this Agreement, and

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whether in writing, or in oral, graphic, electronic or any other form) that is
marked or described as, identified in writing as, or provided under
circumstances indicating it is, confidential or proprietary. Confidential
Information, includes, without limitation, (a) DMC Stratex's Request for
Quotation or Proposal (if any), Specifications, Deliverables, DMC Stratex
Exclusive Tooling, DMC Stratex Know-How and any trade secrets or other
non-public information related to any of the foregoing; (b) any information
relating to either party's product plans, product designs, product costs,
product prices, finances, marketing plans, business opportunities, personnel,
research, development or know-how; (c) any third party confidential information
disclosed to DMC Stratex or to MTI, and (d) the terms, conditions and existence
of this Agreement.

15.2. Non-Disclosure Obligations. Recipient shall hold all Confidential
Information of Discloser in confidence and shall not disclose any Confidential
Information to any third party. Subject to Section 17.12 ("Equitable Relief"),
Recipient shall disclose Discloser's Confidential Information only to its
employees and agents who need to know such information and who are bound by
restrictions regarding disclosure and use of such information comparable to and
no less restrictive than those set forth herein. Recipient shall not use any
Confidential Information for the benefit of itself or any third party or for any
purpose other than the purpose of this Agreement. Recipient shall take the same
degree of care that it uses to protect its own confidential and proprietary
information of similar nature and importance (but in no event less than
reasonable care) to protect the confidentiality and avoid the unauthorized use,
disclosure, publication or dissemination of the Confidential Information. The
obligations of this Section 15 with respect to any item of Confidential
Information or with respect to any discussions or agreements between the parties
shall survive and continue for five (5) years from the date of Recipient's
receipt of such Confidential Information, except that obligations with respect
to trade secrets shall survive any termination or expiration of this Agreement
and shall survive in perpetuity.

15.3. Exceptions. The foregoing restrictions will not apply to Confidential
Information to the extent such Confidential Information: (a) is or becomes
publicly known through no act or omission of the Recipient; (b) was rightfully
known by Recipient before receipt from Discloser, as evidenced by Recipient's
contemporaneous written records or any other demonstrable proof; (c) becomes
rightfully known to Recipient without confidential or proprietary restriction
from a source other than Discloser that does not owe a duty of confidentiality
to Discloser with respect to such Confidential Information; or (d) is
independently developed by Recipient without the use of or reference to any
Confidential Information, as evidenced by Recipient's contemporaneous written
records or any other demonstrable proof. In addition, Recipient may use or
disclose Confidential Information to the extent (i) approved in writing in
advance by Discloser or (ii) Recipient is legally compelled to disclose such
Confidential Information, provided, however, that prior to any such compelled
disclosure, Recipient shall give Discloser reasonable advance notice of any such
disclosure, to the extent legally permissible, and shall cooperate with
Discloser in protecting against any such disclosure and/or obtaining a
protective order narrowing the scope of such disclosure and/or use of the
Confidential Information.

15.4. Return of Confidential Information. Upon any expiration or termination of
this Agreement or upon the request of the Discloser, Recipient shall return or
destroy, at Discloser's option, all Confidential Information of Discloser and
any copies thereof, unless retention of such Confidential Information is
provided for herein. In addition, Recipient shall promptly destroy any
electronic or otherwise non-returnable embodiments of Discloser's Confidential
Information.

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16. TERM AND TERMINATION.

16.1. Term. This Agreement shall commence on the Effective Date and shall
continue for a period of five (5) years from the Effective Date, unless
terminated earlier as provided in this Section 16. After expiration of the
initial term, this Agreement may be extended upon agreement by the parties. The
initial term and any renewal term shall be collectively referred to herein as
the "TERM."

16.2. Termination for Cause. Either party may terminate this Agreement at any
time if the other party is in material breach of any warranty, term, condition
or covenant of this Agreement, and fails to cure such breach within [****]
(unless such period is extended by the agreement of the parties) after receiving
notice of that breach and the other party's intention to terminate, except that
DMC Stratex may terminate this Agreement immediately if MTI has materially
breached Section 1.2, 4.7.2 or 15 herein, and MTI may terminate this Agreement
if DMC Stratex has materially breached Section 2.2 or 15 herein. Termination
will become effective automatically upon expiration of the cure period in the
absence of a cure.

16.3. Termination for Bankruptcy. This Agreement shall be immediately terminated
if either party voluntarily or involuntarily (and such involuntary bankruptcy
proceeding is not dismissed within sixty (60) days of filing) becomes subject to
any bankruptcy, receivership, liquidation, reorganization or other proceeding of
insolvency in favor of the general interest of all its creditors, subject to
MTI's termination obligations as set forth in 16.5.

16.4. Effect of Termination. Any provisions of this Agreement, which are
intended, by their specific terms or by necessary implication, to survive the
expiration or termination of this Agreement shall so survive. Except as
expressly provided for in this Agreement (such as remedies set forth with
respect to changes in forecasts and Purchase Orders in Sections 7 and 8 of this
Agreement), neither party shall be liable to the other party for damages of any
sort solely as a result of terminating this Agreement in accordance with its
terms. Termination of this Agreement will be without prejudice to any other
right or remedy of either party.

16.5. Termination Obligations. Upon any expiration or termination of this
Agreement for any reason, MTI shall promptly assist DMC Stratex in transitioning
the manufacturing and supply capabilities for the Products back to DMC Stratex,
or to a third party designated by DMC Stratex, in an orderly manner pursuant to
the prices, terms and conditions as reasonably determined by the parties.
Provided DMC Stratex pays for such Products, MTI shall continue to manufacture,
under the terms and conditions of this Agreement, the Products or the necessary
Components for the Products, solely as determined by DMC Stratex. MTI's
obligation to continue to supply DMC Stratex with the Products (or Components)
shall continue during such period of time as necessary to fully transition the
manufacturing and supply capabilities from MTI to DMC Stratex or its designee.
Any transition of manufacturing and supply capabilities from MTI to DMC Stratex
or its designee, when made, shall only be relevant to the Products and only to
the extent necessary for DMC Stratex to obtain manufacturing services for the
Products from third-party suppliers. Other than as necessary to comply with
Section 2.2 or this Section 16.5, in no event shall MTI be obligated to transfer
or disclose any MTI Know-How for such transition.

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16.6. Exit Strategy. Should the business environment change significantly to
dictate a different manufacturing strategy for DMC Stratex or for MTI, the
parties shall negotiate a termination of this Agreement, or other resolution to
this Agreement and jointly determine the details of an "Exit Strategy" that
shall be mutually beneficial to both parties or shall minimize any adverse
impact to either party to the greatest possible extent.

16.7. Return of Materials. Upon any expiration or termination of this Agreement,
or otherwise upon DMC Stratex's request, production material consigned to MTI,
DMC Stratex Exclusive Tooling and other DMC Stratex tools, test fixtures, test
equipment, and automated test equipment will be returned to DMC Stratex, or the
parties will otherwise decide what action to take, as instructed by and at the
cost of DMC Stratex. Items such as "golden test units" that MTI may obtain from
DMC Stratex on loan or consigned will be returned to DMC Stratex. As
appropriate, the value of such items will be discounted for the period of use.
In the event of any termination or expiration of this Agreement, all
Confidential Information and other data relating to DMC Stratex, the Products or
the Specifications will be returned to DMC Stratex or migrated to a third party
as instructed by DMC Stratex.

16.8. Transition back - "Recapture" or "Migrate". In the event the parties
decide to transition the manufacturing of the Products back to DMC Stratex, MTI
shall participate, in good faith, in support of such transition.

16.9. Buy Back - Technology Investment. As jointly determined, DMC Stratex will
buy back any MTI technology investment that is required for DMC Stratex to
continue manufacturing at DMC Stratex facilities at such prices, terms and
conditions to be mutually agreed.

16.10. Emergency Back Up Plan. During the Term and for a period of twelve (12)
months thereafter, MTI shall maintain (at a location outside of Taiwan) all
necessary information and documentation required for the manufacture of
Products, including, without limitation, any and all necessary trade secret,
know-how, idea, invention, process, technique, algorithm, program (whether in
source code or object code form), design, schematic, drawing, formula, data, and
technical, engineering, manufacturing, and product information (collectively,
"EMERGENCY DOCUMENTATION"). Such Emergency Documentation shall contain
sufficient information for DMC Stratex to recreate the manufacturing process at
another location in the event MTI cannot perform its obligations under this
Agreement.

17. GENERAL.

17.1. Force Majeure. Neither party will be deemed in default of this Agreement
to the extent that performance of its obligations or attempts to cure any breach
are delayed or prevented by reason of any act of God, fire, natural disaster,
accident, act of government or court, shortages of material or supplies or any
other cause beyond the control of such party ("FORCE MAJEURE"), provided that:
(a) the non-performing party gives the other party written notice of the force
majeure promptly, but in any event no later than sixty (60) calendar days after
the discovery thereof, and uses good faith efforts to perform its obligations
under this Agreement; and (b) in the event the party affected by the Force
Majeure event is MTI, MTI comply promptly with its obligations under Section
16.10 ("Emergency Back Up Plan") of this Agreement. In the event of such a Force
Majeure, the time for performance or cure will be extended for a period equal to
the duration of the Force Majeure, not to exceed six (6) months. In addition,
upon the occurrence of any

                                       27
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL
<PAGE>
                             CONFIDENTIAL TREATMENT

Force Majeure event that prevents MTI from manufacturing or delivery of the
Products pursuant to the Purchase Order, DMC Stratex's obligations under Section
6.2 ("DMC Stratex's Exclusivity") will be terminated, and upon the conclusion of
such Force Majeure event and upon MTI being ready to perform its obligations
under this Agreement, the parties will negotiate a reinstatement of such
obligations.

17.2. Relationship of Parties. Each party hereby represents and warrants to the
other that it is engaged in an independent business and shall perform its
obligations under this Agreement as an independent contractor and not as an
agent or employee of or a joint venturer with the other party; that the persons
performing the Services hereunder for or by itself are not agents or employees
of the other party; that it has and hereby retains, except as set forth herein,
the right to exercise full control with respect to the means of its performance
hereunder and full control over the employment, direction, compensation and
discharge of all employees, agents and subcontractors assisting in such
performance; that it shall be solely responsible for all matters relating to
payment of such employees, including compliance with worker's compensation,
unemployment and disability insurance, social security withholding, and all such
matters; and that it shall be responsible for the acts of itself and the acts of
all agents, employees and contractors employed by it during its performance
under this Agreement.

17.3. Subcontractors. If subcontractors are employed by a party, such party
shall be fully responsible for their acts and omissions and the acts and
omissions of their employees. There shall be no contractual relationship between
the subcontractor and the other party. The party employing such subcontractors
shall indemnify, defend and hold harmless the other party from and against any
and all liability for payment of its subcontractors and suppliers, including,
without limitation, mechanic's liens.

17.4. Public Announcements. The parties hereto shall not make any press release
or public announcement concerning this Agreement or any term hereof, the
existence of discussions between the parties, or any memoranda, letters or
agreements between the parties relating to the transaction contemplated hereby,
except with the prior written consent of the other party or as required under
applicable law or regulatory authority. Any press release or public announcement
relating to the transaction drafted by a party hereto in accordance with the
terms hereof must be approved by the non-drafting party, such approval not to be
unreasonably withheld.

17.5. Assignment.

         17.5.1.  As DMC Stratex has specifically contracted for MTI's services,
                  and as MTI has specifically agreed to provide Services to DMC
                  Stratex, neither party may assign or delegate its obligations
                  under this Agreement, either in whole or in part, in any
                  manner whatsoever, without the prior written consent of the
                  other party.

         17.5.2.  Without limiting the generality of the foregoing, each party
                  may be acquired in a Change-of-Control Event, without
                  obtaining the other party's prior written consent, subject to
                  Section 17.5.3. A "Change-of-Control Event" shall mean any
                  transaction or series of transactions, including, without
                  limitation, any merger or other corporate reorganization of a
                  party, any equity investment in such party, any sale of all or
                  substantially all of the assets of such party, any sale or
                  series of sales or any other transfer or series of transfers
                  of such party's

                                       28
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL
<PAGE>
                             CONFIDENTIAL TREATMENT

                  voting stock by its present shareholders or their grant of a
                  proxy or proxies or their entry into a voting trust or any
                  other agreement, or any combination of such transactions,
                  which results in the present shareholders of such party owning
                  less than a majority of the voting stock of such party or
                  otherwise not possessing direct day to day control of the
                  management and affairs of such party.

         17.5.3.  If either party enters into substantial negotiations that can
                  lead to a Change-of-Control Event, as defined in Section
                  17.5.2, and such party determines that such Change-of-Control
                  Event will have a Material Adverse Effect on the other party,
                  the party affected by the Change-Of-Control Event shall
                  promptly notify the other party thereof, and a consultation
                  shall immediately commence upon the other party's request. The
                  parties further agree that:

                  (a) The agenda for such consultation shall include (i) whether
                  it is necessary to make adjustment to any clauses of this
                  Agreement to avoid or minimize any Material Adverse Effect
                  upon the non-assigning party; and (ii) if the manufacturing
                  services by MTI to DMC Stratex is to be discontinued, the
                  terms and conditions by which MTI and DMC Stratex will jointly
                  conduct an orderly transition of MTI's manufacturing and
                  supply capabilities for the Products to DMC Stratex; (iii) the
                  period necessary for such transition; and (iv) the scope,
                  royalty and other considerations and terms for the license to
                  be granted by MTI to DMC Stratex necessary for DMC Stratex to
                  obtain manufacturing services of the Products from other
                  suppliers; and (v) other matters that either party deems
                  appropriate; and the parties shall negotiate in good faith and
                  with best efforts in order to reach conclusion on such
                  consultation within sixty (60) calendar days after its
                  commencement.

                  (b) Subject to the foregoing Section 17.5.3(a), if DMC Stratex
                  elects not to consent to a Change-of-Control Event affecting
                  MTI, DMC Stratex may terminate its obligations under Section
                  6.2 ("DMC Stratex Exclusivity"), without incurring any further
                  obligations as a result of such termination. So long as DMC
                  Stratex continues to place Purchase Orders with MTI under this
                  Agreement, MTI shall supply Products in accordance with the
                  terms and conditions of this Agreement.

                  (c) Subject to the foregoing Section 17.5.3(a), MTI may
                  terminate this Agreement in the event DMC Stratex is
                  Controlled by certain third party(ies) to be agreed upon by
                  DMC Stratex and MTI in the future.

         17.5.4.  Subject to the foregoing, this Agreement shall be binding upon
                  and shall inure to the benefit of the parties and their
                  respective successors and permitted assigns.

17.6. Notices. Except as otherwise provided herein, all notices required
hereunder or pertaining hereto shall be in writing and shall be deemed delivered
and effective upon either (a) five (5) days after deposit in the mail, postage
prepaid (except where the addressee proves that the notice is not received) (b)
personal delivery, (c) electronic confirmation of a telecopy transmission
received in its entirety at the applicable telecopy number indicated below,
after which the notice will be sent within two (2) business days

                                       29
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL
<PAGE>
                             CONFIDENTIAL TREATMENT

by recognized express courier service, as specified in (d) below, or (d) the
earliest of delivery, refusal of the addressee to accept delivery or failure of
delivery after at least one attempt during normal business hours, in each case
as such events are recorded in the ordinary business records of the delivery
service, which will be by recognized express courier service (such as United
Parcel Service), with all charges prepaid or charged to the sender's account, to
the applicable address set forth below or at such other address as shall be
specified in writing in accordance with this Section:

         If to DMC Stratex:         DMC Stratex Networks, Inc.
                                    170 Rose Orchard Way
                                    San Jose, CA 95134
                                    Attn: [****]
                                    Fax: [****]
                                    email: [****]

         With a copy to:            Morrison & Foerster LLP
                                    755 Page Mill Road
                                    Palo Alto, CA 94304
                                    Attn: [****]
                                    Fax: [****]
                                    email:[****]

         If to MTI:                 Microelectronics Technology, Inc.
                                    1 Innovation Road II
                                    Science-Based Industrial Park
                                    Hsinchu, Taiwan
                                    Attn: [****]
                                    Fax: [****]
                                    email: [****]

         With a copy to:            Lee & Li, Attorneys-at-Law
                                    8th Floor, 11, Park Ave. II
                                    Science-Based Industrial Park
                                    Hsinchu, Taiwan
                                    Attn: [****]
                                    Fax: [****]
                                    email: [****]

17.7. Governing Law; Venue. This Agreement is deemed entered into in San Jose,
California, United States of America and shall in all respects be governed by
and construed under the laws of the State of California, United States of
America, without reference to any of its choice of law rules that would require
the application of the law of any other jurisdiction. The parties expressly
disclaim the application of the United Nations Convention on the International
Sale of Goods to this Agreement. The parties hereto agree that any and all
claims, differences or disputes related to any provision of, or based on any
right arising out of, this Agreement (other than those claims involving or
related to consignment and security interest remedies or enforcement, including,
without limitation, the right, title and interest of DMC Stratex in the
Consigned Business Inventory not purchased hereunder) shall be finally resolved
by arbitration, composed by three (3) arbitrators of which either party shall
select one (1) and the two (2) arbitrators shall then appoint the third as the
chairperson. The arbitration shall be conducted in (i) San Jose, California,
United States of America, pursuant to the rules of the American

                                       30
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL
<PAGE>
                             CONFIDENTIAL TREATMENT

Arbitration Association, if MTI is the applicant for the arbitration; and (ii)
Taipei, Taiwan, pursuant to the ROC Arbitration Act if DMC Stratex is the
applicant for the arbitration. The procedural law of the place of the
arbitration shall apply where the rules are silent. All arbitral proceedings
shall be conducted in English. The arbitral award shall be final, conclusive and
enforceable by any court of competent jurisdiction.

17.8. Severability. If any provision of this Agreement, or the application
thereof, shall for any reason and to any extent be determined by a court of
competent jurisdiction to be invalid or unenforceable under applicable law, the
remaining provisions of this Agreement shall be interpreted so as to best effect
the intent of the parties. The parties further agree to replace any such invalid
or unenforceable provisions with valid and unenforceable provisions designed to
achieve, to the extent possible, the business purposes and intent of such
invalid and enforceable provisions.

17.9. Entire Agreement. This Agreement, together with all exhibits and schedules
hereto, the Transition Services Agreement, the Asset Purchase Agreement and the
Joint Services Agreement, constitute the entire understanding and agreement of
the parties with respect to the subject matter of this Agreement, and supersede
all prior and contemporaneous understandings and agreements, whether written or
oral, with respect to such subject matter, including, without limitation, the
Memorandum of Understanding, entered into by and between MTI and DMC Stratex on
or about May 24th, 2002 and the Master Agreement entered into by and between MTI
and DMC Stratex on or about March 12, 2002.

17.10. Amendments, Modifications and Waivers. No delay or failure by either
party to exercise or enforce at any time any right or provision of this
Agreement will be considered a waiver thereof or of such party's right
thereafter to exercise or enforce each and every right and provision of this
Agreement. No single waiver will constitute a continuing or subsequent waiver.
No waiver, modification or amendment of any provision of this Agreement will be
effective unless it is in writing and signed by the parties, but it need not be
supported by consideration.

17.11. Counterparts. This Agreement may be executed in any number of
counterparts, by manual or facsimile signatures, all of which together shall
constitute one agreement.

17.12. Equitable Relief. Because either party will have access to and become
acquainted with Confidential Information of the other party, the unauthorized
use or disclosure of which would cause irreparable harm and significant injury
which would be difficult to ascertain and which would not be compensable by
damages alone, the parties agrees that Discloser will have the right to
injunctive relief, specific performance or other equitable relief, without
posting of a bond, to redress a breach of Section 15 ("Confidentiality"),
without prejudice to any other rights and remedies that the Discloser may have
for a breach of this Agreement.

17.13. Headings and References. The headings and captions used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement. All references in this Agreement to sections,
paragraphs, exhibits and schedules shall, unless otherwise provided, refer to
sections and paragraphs hereof and exhibits and schedules attached hereto, all
of which are incorporated herein by this reference.

                                       31
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL
<PAGE>
                             CONFIDENTIAL TREATMENT

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives as of the Effective Date.

<TABLE>
<S>                                     <C>
DMC STRATEX NETWORKS, INC.              MICROELECTRONICS TECHNOLOGY, INC.

By:  /S/ Carl A. Thomsen                By:  /S/ Patrick Wang
     -------------------------------         ----------------------------------

Name:  Carl A. Thomsen                  Name:  Patrick Wang

Title:  Senior Vice President,          Title:  Chief Executive Officer and
Chief Financial Officer and                       Chairman of the Board
Corporate Secretary
</TABLE>

                                       32
                    DMC STRATEX NETWORKS, INC. CONFIDENTIAL

<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT A

                                   DEFINITIONS

Capitalized terms that are not otherwise defined in this Exhibit A shall have
the meaning given them elsewhere in this Agreement or in the Asset Purchase
Agreement entered into by and between the parties on or about June 30, 2002
("ASSET PURCHASE AGREEMENT").

         1.1.     "AML" shall have the meaning set forth in Section 4.3 of this
                  Agreement.

         1.2.     "ASSET PURCHASE AGREEMENT" shall have the meaning set forth in
                  the introductory paragraph of this Exhibit A.

         1.3.     "BUSINESS INVENTORY" means the inventory (including all parts,
                  components and accessories) owned by DMC Stratex that may be
                  required to produce the Products.

         1.4.     "COLLATERAL" shall have the meaning set for in Section 3.8.2
                  of this Agreement.

         1.5.     "COMPONENTS" shall mean those parts and sub-assemblies that
                  will be incorporated into the Products.

         1.6.     "CONSIGNED BUSINESS INVENTORY" shall have the meaning set
                  forth in Section 3.1 of this Agreement.

         1.7.     "DELIVERABLES" mean those prototype units of the Product,
                  information and materials to be delivered by MTI to DMC
                  Stratex pursuant to the terms and conditions of this
                  Agreement, as set forth more specifically on Exhibit D.

         1.8.     "DMC STRATEX EXCLUSIVE TOOLING" shall have the meaning set
                  forth in Section 4.4 of this Agreement.

         1.9.     "DMC STRATEX KNOW-HOW" means any data, processes, technical
                  specifications and other information or material that is
                  recorded in writing or otherwise in a material form relating
                  to the manufacture of Products (whether protected by patent,
                  copyright or any other applicable laws for protection of
                  intellectual property right), and that is provided (or made
                  available) to MTI by DMC Stratex or otherwise developed by or
                  for and/or acquired by DMC Stratex or from proprietary
                  information supplied by DMC Stratex, including, without
                  limitation, registrable and unregistrable intellectual
                  property, block and circuit diagrams, test procedures,
                  specifications for mechanical components and materials,
                  component drawings, purchase specifications, recommended
                  sources for purchase of components or material, or screening
                  procedures for selection of suppliers, systems configurations
                  and software and any customer lists. For the avoidance of
                  doubt, the scope of DMC Stratex Know-How does not include MTI
                  Know-How.

         1.10.    "DMC STRATEX KNOW-HOW IMPROVEMENTS" shall have the meaning set
                  forth in Section 2.3.1 of this Agreement.

                                     A - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

         1.11.    "DMC STRATEX TRADEMARKS" mean the DMC Stratex's logos,
                  tradenames, trademarks and services marks which DMC Stratex
                  shall place on Products pursuant to Section 4.7 of this
                  Agreement.

         1.12.    "FACILITY" shall have the meaning set forth in Section 3.1 of
                  this Agreement.

         1.13.    "FIRST ARTICLE PROCESS" shall have the meaning set forth in
                  Section 5.2.1 of this Agreement, and is set forth in detail on
                  Exhibit D.

         1.14.    "IDU" means the indoor unit component of the Products,
                  consisting of signal processing components and associated
                  circuitry, mechanical parts and software required to meet
                  system performance specifications.

         1.15.    "INTELLECTUAL PROPERTY RIGHTS" mean any and all intellectual
                  property rights, including, without limitation, patents,
                  copyrights, trademarks, trade secrets, mask work rights,
                  industrial rights and other intellectual property and
                  proprietary rights throughout the world. Intellectual Property
                  Rights shall include, without limitation, all rights, whether
                  existing now or in the future, whether statutory or common
                  law, in any jurisdiction in the world, together with all
                  local, regional, national, and multinational registrations,
                  applications for registration and all renewals and extensions
                  thereof (including, without limitation, any continuations,
                  continuations-in-part, divisionals, reissues, substitutions
                  and reexaminations); all goodwill associated therewith; and
                  all benefits, privileges, causes of action and remedies
                  relating to any of the foregoing, whether before or hereafter
                  accrued, including, without limitation, the exclusive rights
                  to apply for and maintain all such registrations, renewals and
                  extensions; to sue for all past, present and future
                  infringements or other violations of any rights relating
                  thereto; and to settle and retain proceeds from any such
                  actions.

         1.16.    "INVENTORY PERIOD" means the period beginning on July 1, 2002
                  and ending on December 31, 2003.

         1.17.    "JOINT SERVICES AGREEMENT" means the agreement entered into by
                  and between the parties that will govern the day-to-day
                  activities and responsibilities of each party, which agreement
                  is attached hereto as Exhibit J.

         1.18.    "LAWS" mean any statute, law, regulation, ordinance, rule,
                  judgment, order, decree, permit, concession, grant, franchise,
                  license, agreement, directive, guideline, policy or rule of
                  common law, or any governmental requirement or other
                  governmental restriction or similar form of decision or
                  determination, or any interpretation or administration of any
                  of the foregoing by any applicable national, state, local, or
                  foreign government (or any association, organization or
                  institution of which any of the foregoing is a member, or to
                  whose jurisdiction thereof is subject, or in whose activities
                  any thereof is a participant), whether now or hereafter in
                  effect.

         1.19.    "LONG-LEAD TIME COMPONENTS" mean those components that have a
                  cumulative lead-time (including current manufacturing cycle
                  time) in excess of the Purchase Order commitments for the
                  Products.

         1.20.    "MANUFACTURING PERIOD" means the initial period of this
                  Agreement, during which DMC Stratex will closely monitor MTI's
                  progress on the initial set-up of

                                     A - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

                  the manufacturing process. During the Manufacturing Period,
                  MTI will be required to deliver the Deliverables and meet the
                  Milestones set forth on Exhibit D, including, without
                  limitation, the First Article Process.

         1.21.    "MATERIAL DISCREPANCY" shall have the meaning set forth in
                  Section 3.7.3 of this Agreement.

         1.22.    "MILESTONES" mean those agreed upon dates by which MTI will
                  complete certain portion of the Services or deliver certain
                  Deliverables, as set forth on Exhibit D.

         1.23.    "MTI KNOW-HOW" means any data, processes, and other
                  information or material, provided (or made available) by MTI
                  to DMC Stratex pursuant to this Agreement, and that is
                  recorded in writing or otherwise in a material form (whether
                  protected by patent, copyright or any other applicable laws
                  for protection of intellectual property right), relating to
                  MTI's radio designs (including, without limitation, hybrid
                  transceiver) and manufacturing process and proprietary product
                  developed or acquired by or for MTI, and any improvements
                  thereto made by or for MTI in the course of performing this
                  Agreement.

         1.24.    "OBLIGATIONS" shall have meaning set forth in Section 3.8.1 of
                  this Agreement.

         1.25.    "ODU" means the outdoor component of the Product, consisting
                  of Microwave components and associated circuitry, mechanical
                  parts and software required to meet system performance
                  specifications.

         1.26.    "PRICES" shall have the meaning set forth in Section 7.3 of
                  this Agreement and shall be more specifically set forth on
                  Exhibit H.

         1.27.    "PRODUCTS" means the microwave radio products manufactured by
                  MTI to Specifications, as described more specifically on
                  Exhibit B.

         1.28.    "PURCHASE" shall have the meaning set forth in Section 3.2.2
                  of this Agreement.

         1.29.    "PURCHASED ASSETS" shall have the meaning set forth in Section
                  1.1(a) of the Asset Purchase Agreement.

         1.30.    "PURCHASE ORDERS" shall have the meaning set forth in Section
                  7.1 of this Agreement.

         1.31.    "REPORT OF PURCHASE" shall have the meaning set forth in
                  Section 3.6 of this Agreement.

         1.32.    "RETAINED INVENTORY" means the Business Inventory that is
                  retained by DMC Stratex (and not transferred to MTI) (a) in
                  order for DMC Stratex to fulfill purchase orders for Products
                  outstanding as of the date hereof, (b) in order for DMC
                  Stratex to fulfill purchase orders for Products received
                  during the Transition Period (as such term is defined in the
                  Transition Services Agreement) that are to be fulfilled by DMC
                  Stratex, and (c) all other inventory of DMC Stratex necessary
                  to conduct its business and manufacture its products.

                                     A - 3
<PAGE>
                             CONFIDENTIAL TREATMENT

         1.33.    "SALVAGE SALE" shall have the meaning set forth in Section
                  3.5.2 of this Agreement.

         1.34.    "SCHEDULE" means the schedule for the completion of certain
                  Milestones and delivery of certain Deliverables, as set forth
                  in more detail on Exhibit D.

         1.35.    "SCRAPPED" shall have the meaning set forth in Section 3.5.1
                  of this Agreement.

         1.36.    "SCRAPPED BUSINESS INVENTORY" means any Business Inventory
                  that is deemed to be obsolete by DMC Stratex pursuant to
                  Section 3.1 of this Agreement.

         1.37.    "SERVICES" shall mean those manufacturing and supply services,
                  as generally outlined in Section 4.8 hereof, to be provided by
                  MTI for DMC Stratex in accordance with this Agreement.

         1.38.    "SPECIFICATIONS" mean the technical specifications for the
                  manufacture of the Products, as such Specifications are set
                  forth on Exhibit C, as amended from time to time pursuant to
                  Section 4.2.

         1.39.    "SUBSIDIARY" means an entity, of which fifty percent (50%) or
                  more of its voting securities or beneficial ownership interest
                  is owned directly or indirectly, or whose business operation
                  is otherwise controlled by, MTI, and which will perform
                  manufacturing services in accordance with this Agreement.

         1.40.    "TERM" shall have the meaning set forth in Section 16.1 of
                  this Agreement.

         1.41.    "TRANSITION SERVICES AGREEMENT" shall mean that transition
                  services agreement entered into by and between DMC Stratex and
                  MTI on or about June 30, 2002.

         1.42.    "UCC" means the Uniform Commercial Code as enacted in
                  California and amended or modified from time to time. Unless
                  otherwise defined herein or the context otherwise requires,
                  terms for which meanings are provided in the UCC are used this
                  Agreement, including its preamble and recitals, with such
                  meanings.

         1.43.    "WARRANTY PERIOD" shall have the meaning set forth in Section
                  11.2 of this Agreement.

                                     A - 4
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT B

                               PRODUCT DESCRIPTION

1. ALTIUM: (FULLY TESTED RADIO SYSTEM)

<TABLE>
<CAPTION>
 PART NUMBER           DESCRIPTION                                 COMMENTS                                    DELIVERY ARO
-------------        ----------------          ---------------------------------------------------             ------------
<S>                  <C>                       <C>                                                             <C>
A0021X060-xxx        Altium 6 GHz ODU          Generic 6 GHzODU, NN/HH, T-Rspacing, Spot Frequency                [****]

A0021X070-xxx        Altium 7 GHz ODU          Generic 7 GHzODU, NN/HH, T-Rspacing, Spot Frequency                [****]

A0021X750-xxx        Altium 7.5 GHz ODU        Generic 7.5 GHzODU, NN/HH, T-Rspacing, Spot Frequency              [****]

A0021X080-xxx        Altium 8 GHz ODU          Generic 8 GHzODU, NN/HH, T-Rspacing, Spot Frequency                [****]

A0021X11X-xxx        Altium 11 GHz ODU         Generic 11 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X13X-xxx        Altium 13 GHz ODU         Generic 13 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X15X-xxx        Altium 15 GHz ODU         Generic 15 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X18X-xxx        Altium 18GHz ODU          Generic 18GHzODU, NN/HH, T-Rspacing, Spot Frequency                [****]

A0021X23X-xxx        Altium 23 GHz ODU         Generic 23 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X26X-xxx        Altium 26 GHz ODU         Generic 26 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X28X-xxx        Altium 28 GHz ODU         Generic 28 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]

A0021X38X-xxx        Altium 38 GHz ODU         Generic 38 GHzODU, NN/HH, T-Rspacing, Spot Frequency               [****]
</TABLE>

               ** Based on receipt of ODU's from Stratex Networks.

2. XP4 PLUS+: (FULLY TESTED ODU SUBSYSTEM)

<TABLE>
<CAPTION>
 PART NUMBER                      DESCRIPTION                                  COMMENTS                     DELIVERY ARO
--------------         ----------------------------------         -----------------------------------       ------------
<S>                    <C>                                        <C>                                       <C>
860-20107X-XXX         XP4 7Ghz 2X/4XE1Standard Power ODU         Generic for T-R Spacing and SubBand          [****]

860-20207X-XXX         XP4 7Ghz 4X/8XE1Standard Power ODU         Generic for T-R Spacing and SubBand          [****]

860-20307X-XXX         XP4 7Ghz 16XE1Standard Power ODU           Generic for T-R Spacing and SubBand          [****]

860-20108X-XXX         XP4 8Ghz 2X/4XE1Standard Power ODU         Generic for T-R Spacing and SubBand          [****]

860-20208X-XXX         XP4 8Ghz 4X/8XE1Standard Power ODU         Generic for T-R Spacing and SubBand          [****]

860-20308X-XXX         XP4 8Ghz 16XE1Standard Power ODU           Generic for T-R Spacing and SubBand          [****]

860-21113X-XXX         XP4 13Ghz 2X/4XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20113X-XXX         XP4 13Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21213X-XXX         XP4 13Ghz 4X/8XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20213X-XXX         XP4 13Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21313X-XXX         XP4 13Ghz 16XE1High Power ODU              Generic for T-R Spacing and SubBand          [****]

860-20313X-XXX         XP4 13Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]

860-21115X-XXX         XP4 15Ghz 2X/4XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20115X-XXX         XP4 15Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21215X-XXX         XP4 15Ghz 4X/8XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20215X-XXX         XP4 15Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21315X-XXX         XP4 15Ghz 16XE1High Power ODU              Generic for T-R Spacing and SubBand          [****]

860-20315X-XXX         XP4 15Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]

860-21118X-XXX         XP4 18Ghz 2X/4XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20118X-XXX         XP4 18Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21218X-XXX         XP4 18Ghz 4X/8XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-20218X-XXX         XP4 18Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-21318X-XXX         XP4 18Ghz 16XE1High Power ODU              Generic for T-R Spacing and SubBand          [****]

860-20318X-XXX         XP4 18Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]
</TABLE>

                                     B - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

<TABLE>
<S>                    <C>                                        <C>                                          <C>
860-21123X-XXX         XP4 23Ghz 2X/4XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-23123X-XXX         XP4 23Ghz 2X/4XE1High Power-RFLB ODU       Generic for T-R Spacing and SubBand          [****]

860-20123X-XXX         XP4 23Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22123X-XXX         XP4 23Ghz 2X/4XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-21223X-XXX         XP4 23Ghz 4X/8XE1High Power ODU            Generic for T-R Spacing and SubBand          [****]

860-23223X-XXX         XP4 23Ghz 4X/8XE1High Power-RFLB ODU       Generic for T-R Spacing and SubBand          [****]

860-20223X-XXX         XP4 23Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22223X-XXX         XP4 23Ghz 4X/8XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-21323X-XXX         XP4 23Ghz 16XE1High Power ODU              Generic for T-R Spacing and SubBand          [****]

860-23323X-XXX         XP4 23Ghz 16XE1High Power-RFLB ODU         Generic for T-R Spacing and SubBand          [****]

860-20323X-XXX         XP4 23Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]

860-22323X-XXX         XP4 23Ghz 16XE1Standard Power-RFLB ODU     Generic for T-R Spacing and SubBand          [****]

860-20126X-XXX         XP4 26Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22126X-XXX         XP4 26Ghz 2X/4XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-20226X-XXX         XP4 26Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22226X-XXX         XP4 26Ghz 4X/8XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-20326X-XXX         XP4 26Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]

860-22326X-XXX         XP4 26Ghz 16XE1Standard Power-RFLB ODU     Generic for T-R Spacing and SubBand          [****]

860-20138X-XXX         XP4 38Ghz 2X/4XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22138X-XXX         XP4 38Ghz 2X/4XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-20238X-XXX         XP4 38Ghz 4X/8XE1Standard Power ODU        Generic for T-R Spacing and SubBand          [****]

860-22238X-XXX         XP4 38Ghz 4X/8XE1Standard Power-RFLB ODU   Generic for T-R Spacing and SubBand          [****]

860-20338X-XXX         XP4 38Ghz 16XE1Standard Power ODU          Generic for T-R Spacing and SubBand          [****]

860-22338X-XXX         XP4 38Ghz 16XE1Standard Power-RFLB ODU     Generic for T-R Spacing and SubBand          [****]
</TABLE>

3.       In addition, the term "PRODUCTS" shall include any and all other
         products that may modify, improve upon or derive from the Altium and/or
         XP4 product family (excluding the line of DXR products). "Products"
         shall include the ODU portion of the product being developed as of the
         Effective Date under the name "Unity," to the extent MTI's price,
         quality, and delivery meet DMC's performance requirements.

4.       ARO deliveries are assumed to be within forecast requirements.

                                     B - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT C

                                 SPECIFICATIONS

The Specifications for the Products shall be as set forth in the following
documentation, which DMC Stratex shall make available to MTI:

Specification for XP Plus Series of Digital Microwave Radios E1/E3
000-000076-SPC

Specification for XP Plus Series of Digital Microwave Radios DS-1/DS-3
000-000077-SPC

Specification for Altium Series of Digital Microwave Radios SDH/SONET
1011ALT_1201_U

                                      C - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT D

              ALTIUM SUMMARY MANUFACTURE AND QUALIFICATION SCHEDULE

<TABLE>
<CAPTION>
                                             RESPONSIBLE
   MILESTONE             DELIVERABLE            PARTY           DUE DATE
---------------         ---------------      -----------         ------
<S>                     <C>                  <C>                <C>
Transfer of all         Specifications,      DMC Stratex         [****]
relevant Product           drawings,
Specifications and         BOMs, and
supporting                applicable
documentation                work
                         instructions

Tooling and Test         Manufacturing       DMC Stratex         [****]
Fixtures - 100%            and Test
capacity on line           Equipment

Engineering              First Article           MTI             [****]
released - First            Product
Article Products

Implementation of           Tested           DMC Stratex         [****]
joint business           Processes and         and MTI
processes                 supporting
                         Documentation

Completion of MTI         All Altium         DMC Stratex         [****]
Manufacturing              Products
Review                   approved for
(Qualification)         MTI production

Transfer 50%             First Article           MTI             [****]
Capacity MX311              Product

Transition supply           Online           DMC Stratex         [****]
lines to MTI               qualified
                         suppliers at
                              MTI

MTI System               Audit Report        DMC Stratex         [****]
Qualification Audit
</TABLE>

                                      D - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                        XP4 SUMMARY MANUFACTURE SCHEDULE

<TABLE>
<CAPTION>
   MILESTONE               DELIVERABLE        RESPONSIBLE PARTY     DUE DATE
---------------          ---------------      -----------------     --------
<S>                      <C>                  <C>                   <C>
Transfer of all          Specifications,         DMC Stratex          [****]
relevant Product            drawings,
Specifications and          BOMs, and
supporting                 applicable         Work instructions
documentation                 work            - DMC Stratex and
                          instructions            MTI joint
                                                 development

Tooling and Test         Manufacturing           DMC Stratex          [****]
Fixtures - Pilot            and Test
capacity                   Equipment

Tooling and Test          Manufacturing          DMC Stratex          [****]
Fixtures - 50%              and Test
capacity                    Equipment

Tooling and Test          Manufacturing          DMC Stratex          [****]
Fixtures - 100%             and Test
capacity including          Equipment
PCA

Engineering               First Article              MTI              [****]
released - First             Product
Article Products

Engineering pending       First Article              MTI              [****]
- First Article              Product
Products

Completion of                All XP4             DMC Stratex          [****]
Manufacturing               Products
Review                    approved for
(Qualification)          MTI production

Implementation of            Tested            DMC Stratex and        [****]
joint business            Processes and              MTI
processes                  supporting
                          Documentation
</TABLE>

                                     D - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

<TABLE>
<S>                      <C>                  <C>                   <C>
Transfer PCA ODU             Online                  MTI              [****]
board production to         qualified
MTI                        production

Transition supply            Online              DMC Stratex          [****]
lines to MTI                qualified
                          suppliers at
                               MTI
</TABLE>

*The Manufacture and Qualification Schedule shall be further supplemented by the
"Master Qualification Plan" to be developed by the parties.

FIRST ARTICLE PROCESS: The First Article Process shall be per DMC Stratex's
First Article Requirements procedure, SQ-OP004 or an equivalent DMC Stratex
approved MTI procedure. In addition to the mechanical and electrical tests
listed in the First Article Process, the First Article will not be approved
until the following steps are completed.

Completion of the First Article Process.

Completion of the Manufacturing Readiness Review.

DMC Stratex's written approval of the First Articles pursuant to Section 5.2.1
of this Agreement.

The foregoing process must be performed for each frequency.

                                     D - 3
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT E

                    INSPECTION TESTING AFTER PRODUCT DELIVERY

1.       Altium Product:

[****].

2.       XP4Plus+:

[****]

                                     E - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT F

                        QUALITY AND RELIABILITY STANDARDS

1. Quality and Reliability Requirement. MTI shall maintain a documented Quality
program consistent with the intent of ISO-9000 and meet applicable Reliability
requirements per Belcore (Tel Cordia Technologies) Standard TR-332/TR-NWT-000284
for telecommunication industries as listed below:

1.1 MTI shall provide an approved copy of the MTI's Quality document.

1.2 MTI shall document a Program Quality Plan, in accordance with ISO 10005.

1.3 The Program Quality Plan shall identify the critical key processes and how
MTI will control the processes utilizing techniques such as Statistical Process
Control (SPC).

1.4 For contracted end assembly, the Program Quality Plan must identify
selection of components per Quality Level III (P.S. MTI conforms to level II now
and will do effort to meet level III in the future.) per Belcore TR-332.
Exception: early life control portion of requirement paragraph "g" is not
required. Reliability audits should be conducted on regular intervals with prior
notice to MTI, at least once a year to ensure compliance in selection of
components for production per above standards.

1.5 Prior to MTI starting any production efforts, MTI shall provide the Program
Quality Plan to DMC Stratex Purchasing Department.

1.6 The Quality plan shall include the controls required to satisfy the ESD
requirements for devices which are static sensitive and capable of being
degraded, damaged, or destroyed by electrostatic charges or discharges such that
(1) all items shall be preserved, packaged, and stored in such a manner as to
prevent exposure to the generation or discharge of electrostatic voltages, (2)
all items shall be processed and handled as a minimum in accordance with JEDEC
Publication #JEP108-B (April, 1991) and (3) supplier MTI shall maintain a
documented system for the control and handling of static-sensitive materials.

1.7 MTI shall provide to DMC Stratex monthly reports, containing as a minimum:
First Pass Yields, Critical Process Yields, SPC data, Pareto charts on defects
and major failure modes.

1.8 MTI shall identify the major cause of the failures and provide a corrective
action plan with an implementation date within ten (10) business days.

1.9 MTI must perform detailed failure root cause analysis, when requested by DMC
Stratex, to provide most likely failure cause of select items with higher field
failures. Fault tree, cause and effect diagram and other engineering tools and
techniques must be used to scientifically provide most like scenarios and causes
of failed items. Corrective action related to design or processes opportunities
as identified in the failure analysis must be implemented at the earliest
available opportunity. Progress of detailed failure analysis must be reported,
at least once a month through a formal progress report, or as requested by DMC
Stratex.

                                      F - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT G

                             OUT-OF-WARRANTY REPAIRS

         Pursuant to Section 12.4 of this Agreement, MTI shall charge the
         following amounts for repairs of non-conforming Products, which are no
         longer covered under the warranty set forth in Section 11.2 of this
         Agreement. The following list of prices are subject to further
         negotiations by the parties, and may be adjusted up or down subject to
         such negotiations.

I. ALTIUM: (FULLY TESTED RADIO SYSTEM)

<TABLE>
<CAPTION>
 PART NUMBER                   DESCRIPTION             REPAIR PRICE          REPLACEMENT PRICE
 -----------          ---------------------------      ------------    -----------------------------
                                                                       UP UNTIL THE    AFTER THE END
                                                                       [****] MONTHS   OF THE [****]
                                                                       FROM THE        MONTH OF
                                                                       BEGINNING OF    DELIVERY OF
                                                                       THE [****]      PRODUCT
                                                                       MONTH OF
                                                                       DELIVERY OF
                                                                       PRODUCT

<S>                   <C>                     <C>         <C>          <C>             <C>
A00211060-xxx         Altium 6 GHz ODU         NN         [****]           [****]         [****]

A00212060-xxx         Altium 6 GHz ODU        Prot        [****]           [****]         [****]

A00211070-xxx         Altium 7 GHz ODU         NN         [****]           [****]         [****]

A00212070-xxx         Altium 7 GHz ODU        Prot        [****]           [****]         [****]

A00211750-xxx         Altium 7.5 GHz ODU       NN         [****]           [****]         [****]

A00212750-xxx         Altium 7.5 GHz ODU      Prot        [****]           [****]         [****]

A00211080-xxx         Altium 8 GHz ODU         NN         [****]           [****]         [****]

A00212080-xxx         Altium 8 GHz ODU        Prot        [****]           [****]         [****]

A0021111X-xxx         Altium 11 GHz ODU        NN         [****]           [****]         [****]

A0021211X-xxx         Altium 11 GHz ODU       Prot        [****]           [****]         [****]

A0021113X-xxx         Altium 13 GHz ODU        NN         [****]           [****]         [****]

A0021213X-xxx         Altium 13 GHz ODU       Prot        [****]           [****]         [****]

A0021115X-xxx         Altium 15 GHz ODU        NN         [****]           [****]         [****]

A0021215X-xxx         Altium 15 GHz ODU       Prot        [****]           [****]         [****]

A0021118X-xxx         Altium 18GHz ODU         NN         [****]           [****]         [****]

A0021218X-xxx         Altium 18GHz ODU        Prot        [****]           [****]         [****]

A0021123X-xxx         Altium 23 GHz ODU        NN         [****]           [****]         [****]

A0021223X-xxx         Altium 23 GHz ODU       Prot        [****]           [****]         [****]

A0021126X-xxx         Altium 26 GHz ODU        NN         [****]           [****]         [****]

A0021226X-xxx         Altium 26 GHz ODU       Prot        [****]           [****]         [****]

A0021128X-xxx         Altium 28 GHz ODU        NN         [****]           [****]         [****]

A0021228X-xxx         Altium 28 GHz ODU       Prot        [****]           [****]         [****]

A0021138X-xxx         Altium 38 GHz ODU        NN         [****]           [****]         [****]

A0021238X-xxx         Altium 38 GHz ODU       Prot        [****]           [****]         [****]
</TABLE>

Note:

1.       For the range of 11GHz and 13GHz, MTI will not assume any repair and
         replacement.

2.       For the range of 15GHz, MTI will be responsible for the repair as well
         as replacement only for the delivered Product composed of
         Transceiver(s) "made" by MTI.

3.       For the 15GHz ODU made by other suppliers, MTI may provide replacement
         service for such ODU only if (i) such other suppliers cannot provide
         the out-of-warranty service; (ii) the transceiver of such ODU was
         manufactured by MTI.

4.       For replacement service, MTI will scrap the failed units at MTI's site.

                                      G - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

II. XP4 PLUS+: (FULLY TESTED ODU SUBSYSTEM)

<TABLE>
<CAPTION>
 Part Number                        Description                  Repair Price                  Replacement Price
--------------         -----------------------------------       ------------             -----------------------------
                                                                                          Up until the      After the
                                                                                          [****] months     end of the
                                                                                          from the          [****]
                                                                                          beginning of      month of
                                                                                          the [****]        delivery of
                                                                                          month of          Product
                                                                                          delivery of
                                                                                          Product

<S>                    <C>                                       <C>                      <C>              <C>
860-201072-131         XP4 7Ghz 2X/4XE1 Standard Power ODU          [****]                [****]           [****]

860-202071-011         XP4 7Ghz 4X/8XE1 Standard Power ODU          [****]                [****]           [****]

860-203071-011         XP4 7Ghz E3 Standard Power ODU               [****]                [****]           [****]

860-201081-011         XP4 8Ghz 2X/4XE1 Standard Power ODU          [****]                [****]           [****]

860-202081-011         XP4 8Ghz 4X/8XE1 Standard Power ODU          [****]                [****]           [****]

860-203081-011         XP4 8Ghz E3 Standard Power ODU               [****]                [****]           [****]

860-201131-011         XP4 13Ghz 2X/4XE1 Standard Power ODU         [****]                [****]           [****]

860-202131-011         XP4 13Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203131-011         XP4 13Ghz E3 Standard Power ODU              [****]                [****]           [****]

860-201151-011         XP4 15Ghz 2X/4XE1Standard Power ODU          [****]                [****]           [****]

860-202151-011         XP4 15Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203151-012         XP4 15Ghz E3 Standard Power ODU              [****]                [****]           [****]

860-201181-011         XP4 18Ghz 2X/4XE1Standard Power ODU          [****]                [****]           [****]

860-202181-011         XP4 18Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203181-011         XP4 18Ghz E3 Standard Power ODU              [****]                [****]           [****]

860-201232-011         XP4 23Ghz 2X/4XE1Standard Power ODU          [****]                [****]           [****]

860-202232-011         XP4 23Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203232-011         XP4 23Ghz E3 Standard Power ODU              [****]                [****]           [****]

860-201261-011         XP4 26Ghz 2X/4XE1Standard Power ODU          [****]                [****]           [****]

860-202261-011         XP4 26Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203261-011         XP4 26Ghz E3 Standard Power ODU              [****]                [****]           [****]

860-201381-011         XP4 38Ghz 2X/4XE1Standard Power ODU          [****]                [****]           [****]

860-202381-011         XP4 38Ghz 4X/8XE1Standard Power ODU          [****]                [****]           [****]

860-203381-011         XP4 38Ghz E3 Standard Power ODU              [****]                [****]           [****]
</TABLE>

Note:

1.       For the range of 26GHz and 38GHz, MTI will be responsible for the
         repair as well as replacement only if (i) such Product was composed of
         Transceiver(s) "made" by MTI, or (ii) DMC Stratex continues to provide
         discounted transceivers for replacement per mutually agreed price.

2.       For replacement service, MTI will scrap the failed units at MTI site.

                                     G - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT H

                                     PRICES

The Price for the Products are set forth below in United States Dollars as
follows:

I. ALTIUM PRICING.

<TABLE>
<CAPTION>
                       ODU ONLY      ODU & IDU        NAFTA         COMMENTS
                       --------      ---------        -----         --------
<S>                    <C>           <C>              <C>           <C>
18G AND UP
NN                      [****]         [****]         [****]        Note 1
PROT                    [****]         [****]         [****]        Note 1

6G AND 15G
NN                      [****]         [****]         [****]        Note 1, 2
PROT                    [****]         [****]         [****]        Note 1, 2

15G WITH YIG
NN                      [****]         [****]         [****]
PROT                    [****]         [****]         [****]

7G AND 8G
NN                      [****]         [****]         [****]        Note 1, 2
PROT                    [****]         [****]         [****]        Note 1, 2

11/13/15G
NN OR PROT                 N/A         [****]            N/A        Note 3
</TABLE>

TRANSFER COST AND DISCOUNTED XCVR/IF (18G-38G)

<TABLE>
<CAPTION>
                                      NN                 Protected
                                    ------         --------------------
<S>                                 <C>             <C>        <C>
Discounted XCVR/IF                  [****]          [****]     (Note 4)
RF PlugIn Kits                      [****]          [****]     (Note 5)
Enclosure Assy                      [****]          [****]     (Note 5)
YIG Synth                           [****]          [****]
OSAC                                [****]          [****]
RF Distribution Assy                [****]          [****]     (Note 5)
Discounted xfer mat'l cost          [****]          [****]
</TABLE>

NOTES:

1.       DMC Stratex shall make arrangement to transport and consign the IDU,
         ISK, Accessories, and anything else not part of the integration of ODU
         to MTI.

2.       The Prices are based on the cost of single loop VCO. The YIG shall be
         used if the single loop VCO does not perform appropriately. When YIG is
         used, the Price will be adjusted, based on the incremental cost of YIG.

3.       In addition to term specified in Note 1, DMC Stratex will make
         arrangement to transport and consign the ODU to MTI.

4.       DMC Stratex and MTI shall negotiate the pro rata term in good faith to
         utilize the excess XCVR/IF inventory left in both parties.

5.       If complete Kits or Assy Are not available, DMC will sell the partial
         Kits or Assy to MTI at DMC Stratex's standard costs less any profit and
         overhead.

6.       The incremental cost for Altium 311 (2 x STM-1) will be negotiated and
         paid by DMC Stratex.

                                     H - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

II. XP4 PLUS+ PRICING.

[****]

                                     H - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT I

                            MTI PRICE REDUCTION PLAN

I.       MTI RESPONSIBILITIES.

         A.       XP4PLUS+ PRODUCT:

         1.       PRODUCTS SHIPPED PRIOR TO JANUARY 1, 2003: [****]

         2.       PRODUCTS SHIPPED ON OR AFTER JANUARY 1, 2003: [****]

B.       ALTIUM PRODUCT:

         1.       PRODUCTS SHIPPED AFTER THE EFFECTIVE DATE: [****]

II. DMC STRATEX RESPONSIBILITIES. To assist MTI to achieve the above-stated goal
for Product Price reduction, DMC Stratex agrees to allocate adequate engineering
resources for continuous cost improvements (particularly to reduce PCA costs).
Any subsequent or additional reduction in Prices shall be subject to mutual
review and combined efforts at further cost improvements.

                                     I - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT J

          JOINT SERVICES AGREEMENT IS INCORPORATED BY REFERENCE HEREIN.

                                     J - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT K

                     INVENTORY UTILIZATION INCENTIVE PROGRAM

PURPOSE: DMC Stratex's current inventory levels significantly exceed the current
demand levels for both quantity and configuration requirements for the Products.
This Inventory Utilization Incentive Program set forth in this Exhibit K
("INCENTIVE PROGRAM") is designed to provide incentives to both DMC Stratex and
MTI employees to develop and execute plans to convert and use DMC Stratex's
current inventory for the Products.

THE INCENTIVE PROGRAM WILL BE STRUCTURED AS FOLLOWS:

INCENTIVE PROGRAM: DMC Stratex shall pay DMC Stratex and MTI teams of employees
who successfully adapt currently unusable consigned inventory ("UNUSABLE
CONSIGNED INVENTORY") to a form that may be used with current configuration
requirements for the Products ("USABLE CONSIGNED INVENTORY") a bonus payment
equal to [****] of the "DISCOUNTED VALUE" of the Usable Consigned Inventory
("EMPLOYEE BONUS PAYMENT"). At the end of each fiscal year (March 31st), [****]
of the Employee Bonus Payment accumulated in such fiscal year shall be
distributed to the MTI team, and the remaining [****] shall be distributed to
the DMC Stratex team.

The cost of the "UNUSABLE CONSIGNED INVENTORY" shall mean the original cost to
DMC Stratex of such inventory.

The cost of the "USABLE CONSIGNED INVENTORY" shall be the cost of the Unusable
Consigned Inventory, less any amount of cost incurred by MTI to rework such
Unusable Consigned Inventory ("REWORK COST") to convert such inventory to Usable
Consigned Inventory.

"DISCOUNTED VALUE":

(a) For the first [****] of Unusable Consigned Inventory utilized in accordance
with this Exhibit K, the "Discounted Value" shall mean the cost of the Usable
Consigned Inventory, less a discount of [****] from the Usable Consigned
Inventory cost. (b) Thereafter, Discounted Value shall mean the Usable Consigned
Inventory less a discount of [****] from the Usable Consigned Inventory cost.

The following is an example of how the Incentive Program will work:

<TABLE>
<CAPTION>
DESCRIPTION                                  QTY   UNIT/$   TOTAL/$        COMMENTS
-----------                                  ---   ------   -------        --------
<S>                                <C>       <C>   <C>      <C>            <C>
PCA, DS3 ("UNUSABLE                [****]                                  Consigned Inventory -
CONSIGNED INVENTORY")                                                      DMC Stratex

CONVERT TO PCA, E3

"Rework Cost" - Quoted by MTI      [****]

Net Value ("Usable Consigned       [****]
INVENTORY")
</TABLE>

                                     K - 1
<PAGE>
                             CONFIDENTIAL TREATMENT

<TABLE>
<S>                                <C>                                     <C>
Discount provided by DMC           [****]                                  Purchase Order issued
Stratex to MTI for                                                         by MTI to DMC
utilization  ("DISCOUNTED                                                  Stratex.  Inventory
VALUE")                                                                    incorporated into the
                                                                           Products sold to
                                                                           DMC Stratex per
                                                                           Exhibit H.

Employee Incentive provided        [****]                                  [****]  paid to each
by DMC Stratex to be paid to                                               team by DMC Stratex at
MTI and DMC Stratex                                                        fiscal year end based
employees ("EMPLOYEE BONUS                                                 on the net value of
PAYMENT")                                                                  the Usable Consigned
                                                                           Inventory.
</TABLE>

A.       REWORKED COMPONENT ITEMS.

Items that require conversion and rework ("REWORKED COMPONENT ITEMS") for
utilization based on future demand shall be eligible for this Incentive Program,
provided, however, such items shall qualify for Employee Bonus Payment when and
only when they are incorporated into the Products to fulfill demand
requirements.

B.       NON-REWORKED COMPONENT ITEMS.

Component items that do not require rework or conversion, such as components for
PCAs, ("NON-REWORKED COMPONENT ITEMS") shall be eligible for the Incentive
Program if such components are used by MTI for items other than the Products.
Such Non-reworked Component Items shall qualify for the Employee Bonus Payment
when DMC Stratex receives purchase orders from MTI for such items. Although
Rework Costs are not applicable to the Non-reworked Component Items, a [****]
discount will be applied to the original cost to DMC Stratex of such
Non-reworked Component items (the "DISCOUNTED VALUE") to determine the Employee
Bonus Payment.

C.       FINISHED GOODS INVENTORY ITEMS.

Those goods which DMC Stratex designates as "FINISHED GOODS INVENTORY ITEMS"
will be reviewed on a case-by-case basis to determine the appropriate Employee
Bonus Payment.

                                     K - 2
<PAGE>
                             CONFIDENTIAL TREATMENT

                                    EXHIBIT L

                                  ROYALTY RATE

The royalty rate for DMC Stratex's exercise of the license rights granted to DMC
Stratex under Section 2.2 shall be calculated as follows: DMC Stratex shall pay
a royalty equal to [****] of "MTI's Average Selling Price" of the specific
component (which is either incorporated into a Product or sold as a stand-alone
merchandise) containing MTI Know-How, which has been manufactured by DMC
Stratex, or a third party designated by DMC Stratex, in the exercise of DMC
Stratex's rights under Section 2.2. "MTI's Average Selling Price" shall mean (i)
[****].

All the royalty payment shall be subject to audit right of MTI against DMC
Stratex's books and records related to calculation of such royalty, which may be
exercised no more than once every calendar year and only within normal business
hours of DMC Stratex with at least two (2) weeks' notice, and DMC Stratex shall
provide reasonably necessary assistance and support in such audit; provided that
no audit shall be permitted after twelve (12) months after the settlement of the
royalty due. DMC Stratex shall provide MTI, no later than tenth (10th) calendar
days after each quarter, a quarterly report on the royalty due for the preceding
quarter, and all royalty payments shall be due within thirty (30) calendar days
after the quarterly royalty report is sent by DMC Stratex.

                                     L - 1<PAGE>
                                                                    EXHIBIT 10.1

                                 INTERNATIONAL
                              DISTRIBUTOR AGREEMENT

This Distributor Agreement (the "Agreement") is made and entered into this 1st
day of January 2002 by and between Micro Linear Corporation, having it's
principal place of business at 2092 Concourse Drive, San Jose, CA 95131
(hereinafter referred to as "MANUFACTURER") and Teksel Corporation, Ltd. having
its principal place of business at 2-27-10 Higashi, Shibuya-ku, Tokyo 150-0011
Japan (hereinafter referred to as "DISTRIBUTOR").

        In consideration of the mutual promises herein contained, the
MANUFACTURER and DISTRIBUTOR agree as follows:

1. APPOINTMENT

        A. Subject to the terms stated herein, MANUFACTURER appoints
DISTRIBUTOR, and DISTRIBUTOR hereby accepts such appointment, as MANUFACTURER'S
authorized distributor for the Products in the territory (as defined in Section
3A below).

        B. The relationship of MANUFACTURER and DISTRIBUTOR established by this
Agreement is that of independent contractors. Nothing contained in this
Agreement shall be construed to give either party the power to direct and
control the day-to-day activities of the other, or constitute the parties as
partners, joint ventures, co-owners or otherwise as participants in a joint or
common undertaking. DISTRIBUTOR, its agents, and employees are not the
representative of MANUFACTURER for any purpose except as expressly set forth in
the Agreement. They have no power or authority as agent, employee, or in any
other capacity to represent, act for, bind, or otherwise create or assume any
obligation on behalf of MANUFACTURER for any purpose whatsoever. All financial
obligations associated with DISTRIBUTOR'S business are the sole responsibility
of DISTRIBUTOR. All sales and other agreements between DISTRIBUTOR and its
customers are DISTRIBUTOR'S exclusive responsibility and shall have no effect on
DISTRIBUTOR'S obligations under this Agreement. DISTRIBUTOR shall be solely
responsible for, and shall indemnify and hold MANUFACTURER free and harmless
from any and all claims, damages, or lawsuits arising solely out of the acts of
DISTRIBUTOR, its employees, and its agents.

2. DEFINITION OF "PRODUCTS"

        A. The term "Products" shall mean all products offered for sale by
MANUFACTURER as set forth and described in MANUFACTURER'S current published
Distributor Price List.

        B. Additional Products may be added to this agreement, including
products specified in MANUFACTURER'S Published Price List but not approved for
DISTRIBUTOR stocking, by mutual agreement between the parties.

3. DEFINITION OF "TERRITORY"

        A. The term "Territory" shall mean the geographic areas known as Japan.

                                                                               1

<PAGE>

4. TERM

        This Agreement shall become effective on the date it is executed by
DISTRIBUTOR and shall continue in full force and effect until the end of the
calendar year in which it was executed, unless terminated earlier pursuant to
the terms of Section 27 of this Agreement. One month prior to the end of the
term, the parties shall negotiate in good faith the term and conditions of a new
one (1) year Agreement.

5. DISTRIBUTOR ACTIVITIES

        A. DISTRIBUTOR agrees to actively and diligently solicit the trade in
the territory, and in general make all reasonable efforts to sell MANUFACTURERS
Products.

        B. During the term of this Agreement, DISTRIBUTOR shall have the right
within the Territory to indicate to the public that it is an authorized
DISTRIBUTOR of the Products and to advertise such items under the trademarks,
service marks, and trade names that MANUFACTURER may adopt from time to time
("MANUFACTURER'S Trademarks"). DISTRIBUTOR shall not alter or remove any
MANUFACTURER'S Trademarks applied to the Products. Nothing herein shall grant to
DISTRIBUTOR any right, title or interest in MANUFACTURER'S Trademarks. All uses
of MANUFACTURER'S Trademarks by DISTRIBUTOR shall inure to the benefit of
MANUFACTURER. At no time during the term of this Agreement shall DISTRIBUTOR
challenge or assist others in challenging MANUFACTURER'S Trademarks or the
registration thereof nor attempt to register any trademarks, service marks or
trade names confusingly similar to those of MANUFACTURER.

        C. Upon termination of this Agreement, DISTRIBUTOR shall forthwith cease
any further use of any trademark, service mark, or trade name for which consent
to use had been granted by MANUFACTURER.

        D. DISTRIBUTOR agrees to examine, or cause to be examined, all Products
shipped by MANUFACTURER promptly upon receipt thereof, and to immediately file
or cause to be filed a claim with the carrier upon delivery for any damage to or
shortage in the Products, and to notify MANUFACTURER within ten (10) days after
receipt of the Products of any such claim pertaining thereto.

        E. DISTRIBUTOR agrees to comply with all applicable laws and regulations
currently existing in the territory relating to the Products.

        F. DISTRIBUTOR will pass on to its customers MANUFACTURER'S warranty
with respect to all products purchased by customers. DISTRIBUTOR will not pass
on to its customers any warranty that exceeds the scope of MANUFACTURER'S
written warranty. DISTRIBUTOR shall indemnify and hold MANUFACTURER harmless
from and against any and all claims and liabilities, costs, and expenses
(including the reasonable fees of attorneys and other professionals) incurred
by, or threatened against, MANUFACTURER in connection with

                                                                               2

<PAGE>

any representation by DISTRIBUTOR or DISTRIBUTOR'S personnel or agents
inconsistent with or broader than the warranties and disclaimers set forth in
this Agreement.

        G. DISTRIBUTOR shall use its reasonable best efforts, consistent with
prudent business practice, to maintain a representative inventory of Products in
reasonable sufficient quantities to provide reasonably adequate and timely
delivery to DISTRIBUTOR'S customers.

        H. DISTRIBUTOR and its employees shall participate, when and to the
extent appropriate, in such training programs as may be offered by Supplier, to
the extent that such participation does not materially detract from the conduct
of DISTRIBUTORS business.

        I. DISTRIBUTOR, at its election, may translate MANUFACTURER promotional
materials into local languages. DISTRIBUTOR will promptly provide MANUFACTURER
with a soft and hard copy of all translated materials and revisions thereto for
MANUFACTURER'S approval, which approval shall not be unreasonably withheld or
delayed. DISTRIBUTOR may publish or distribute such translated materials only
after MANUFACTURER has approved their use in writing. The copyright on all such
translations shall be owned by MANUFACTURER by virtue of the "work for hire"
doctrine or shall be transferred to MANUFACTURER.

6. MANUFACTURER OBLIGATIONS

        A. MANUFACTURER shall maintain a policy of engaging in Product
merchandising and advertising on a worldwide basis to provide a continuing
demand for MANUFACTURER Products. MANUFACTURER will, at its sole discretion,
include DISTRIBUTORS name in such advertising from time to time, with prior
approval.

        B. MANUFACTURER shall furnish DISTRIBUTOR with price lists, sales
literature, books, catalogues, product briefs, advanced product information,
data sheets, and the like, as MANUFACTURER may prepare for national distribution
at no cost to DISTRIBUTOR. MANUFACTURER shall also provide DISTRIBUTOR with such
technical and sales support as may be necessary to assist DISTRIBUTOR in
effectively carrying out its activities under this Agreement.

        C. MANUFACTURER agrees that its facilities will be regularly and
actively employed to the mutual benefit of MANUFACTURER and DISTRIBUTOR and to
assist DISTRIBUTOR in whatever manner is deemed proper by MANUFACTURER for the
sale of Products.

        D. MANUFACTURER shall ship, mark and pack all Military Products in
accordance with the relevant specifications.

        E. MANUFACTURER shall refer to DISTRIBUTOR: customers and potential
customers for quantities of the Products customarily handled by distributors.

        F. MANUFACTURER shall establish and maintain such quality control
procedures, electrostatic discharge sensitivity procedures, testing of Products
and other customary programs

                                                                               3

<PAGE>

as are necessary to ensure that the Products, as manufactured and sold to
DISTRIBUTOR, are of the highest quality and reliability.

7. MANUFACTURER - DISTRIBUTOR LIABILITY

        A. Neither MANUFACTURER nor DISTRIBUTOR shall be liable for failure to
perform any obligation under this Agreement if such failure is caused by
circumstances not directly under the party's control, including failures
resulting from force majeure, acts of God, acts of public authorities, war and
war measures, strikes, fires, or failures or delays of suppliers or carriers.

        B. MANUFACTURER'S TOTAL LIABILITY ARISING OUT OF THIS AGREEMENT AND/OR
THE SALE OF ANY PRODUCT SHALL NOT EXCEED THE DISTRIBUTOR PRICE FOR THE PRODUCT
GIVING RISE TO THE LIABILITY. IN NO EVENT SHALL MANUFACTURER BE LIABLE FOR COSTS
OF PROCUREMENT OF SUBSTITUTE GOODS BY ANYONE. IN NO EVENT SHALL MANUFACTURER BE
LIABLE TO DISTRIBUTOR OR ANY OTHER ENTITY FOR ANY SPECIAL, CONSEQUENTIAL,
INCIDENTAL, OR INDIRECT DAMAGES OR LOST PROFITS, HOWEVER CAUSED, WHETHER
PURSUANT TO A THEORY IN BREACH OF CONTRACT, NEGLIGENCE, OR OTHERWISE, AND
WHETHER OR NOT MANUFACTURER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE
OF ANY LIMITED REMEDY. THE ESSENTIAL PURPOSE OF THIS PROVISION IS TO LIMIT THE
POTENTIAL LIABILITY OF MANUFACTURER ARISING OUT OF THIS AGREEMENT AND
DISTRIBUTION OF PRODUCTS.

8. COMPLIANCE WITH LAWS

        A. DISTRIBUTOR will comply with all laws and governmental regulations,
which prohibit export or diversion of MANUFACTURERS products to certain
countries, and not knowingly assist or participate in any such diversion or
other violation of applicable U.S. laws and regulations.

        B. DISTRIBUTOR understands and acknowledges that MANUFACTURER is subject
to regulation by agencies of the U.S. Government, including the U.S. Department
of Commerce, which prohibits export or diversion of certain products and
technology to certain countries. Any and all obligations of MANUFACTURER to
provide products or documentation or any media in which any of the foregoing is
contained, as well as any technical assistance, shall be subject in all respects
to MANUFACTURER'S compliance with such United States laws and regulations as
shall from time to time govern the license and delivery of technology and
products abroad by persons subject to the jurisdiction of the United States,
including the Export Administration Act of 1979, as amended, any successor
legislation, and the Export Administration Regulations issued by the Department
of Commerce, Bureau of Export Administration.

                                                                               4

<PAGE>

        C. Without limiting the foregoing, DISTRIBUTOR certifies that unless
prior written authorization is obtained from the United States Bureau of Export
Administration or the Export Administration Regulations explicitly permit the
re-export without such written authorization, it will not export, re-export, or
transship, directly or indirectly, the Products to country groups D-1 or E-2 (as
defined in the Export Administration Regulations), which currently consist of
Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, China (PRC), Cuba,
Estonia, Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Libya, Lithuania,
Moldova, Mongolia, North Korea, Romania, Russia, Tajikistan, Turkmenistan,
Ukraine, Uzbekistan and Vietnam, or to Iran, Iraq or Syria or to any other
country as to which the U.S. Government has placed an embargo against the
shipment of products, software or technology which is in effect during the term
of this Agreement. This Section 8.C. shall survive any termination of this
Agreement.

        D. DISTRIBUTOR shall at all times during the term of the Agreement have
in effect all licenses, permits, and authorizations from all governmental
agencies necessary to the performance of its obligations hereunder, and shall
comply with all applicable laws, rules, and regulations affecting its activities
hereunder.

9. TERMS OF PAYMENT

        A. MANUFACTURER will invoice DISTRIBUTOR upon shipment of each order.
Payment for all products shipped and invoiced by MANUFACTURER are on a net 30
basis.

        B. All payments shall be made in the currency set forth in
MANUFACTURER'S Distributor Price List. DISTRIBUTOR represents and warrants that
no currency control laws applicable in the Territory prevent the payment to
MANUFACTURER of any sums due under this Agreement. In the event that any such
laws come into effect and the local government of the Territory does not permit
that payment be made in the currency described above, DISTRIBUTOR will notify
MANUFACTURER immediately, and if so instructed by MANUFACTURER, deposit all
monies due MANUFACTURER to the account of MANUFACTURER in a local bank of
MANUFACTURER'S choice in the Territory.

10. APPLICATION OF CREDITS

        A. MANUFACTURER reserves the right to apply any outstanding credits due
to DISTRIBUTOR as a set-off against any debit due from DISTRIBUTOR to
MANUFACTURER.

        B. In the event DISTRIBUTOR is entitled to a credit from MANUFACTURER
hereunder, and the amount of such credit exceeds DISTRIBUTOR'S obligation to
MANUFACTURER at the time, MANUFACTURER shall forthwith pay the amount of such
excess to DISTRIBUTOR.

11. REPORTS

                                                                               5

<PAGE>

        A. Inventory Reports -

           The DISTRIBUTOR will submit a monthly inventory report covering all
of MANUFACTURERS products on hand in each stocking location. This is to be
supplied along with the POS report described in paragraph 11B.

        B. Point of Sales Reports -

           DISTRIBUTOR agrees to submit monthly reports to MANUFACTURER showing
total sales of MANUFACTURER Products by complete part number, quantity sold,
unit price, price extension, and customer identification and location. Each
monthly report shall be submitted by the fifteenth (15th) of the month
immediately following the close of the preceding business month.

12. PRICES

        A. The prices to be paid by DISTRIBUTOR for Products purchased for
resale shall be those prices set forth in MANUFACTURER'S established Distributor
Price List in effect at the time of shipment from the Factory. For special
prices negotiated with the MANUFACTURER, all sales are final.

        B. Prices quoted in MANUFACTURER'S Distributor Price List do not include
Federal, State, Local, Sales, Use, Value Added (VAT), Excise, Customs, Import or
similar taxes or duties imposed by any governmental agency that has jurisdiction
over the import, export, or purchase over the Products. DISTRIBUTOR shall be
liable for and shall pay all applicable taxes, duties, license fees or other
charges incident to the sale of Products when MANUFACTURER has the legal
obligation to collect such taxes. The appropriate amount shall be added to
MANUFACTURER'S invoice and paid by DISTRIBUTOR unless DISTRIBUTOR provides
MANUFACTURER with a valid tax exemption certificate authorized by the
appropriate taxing authority. In the event that DISTRIBUTOR is required by law
to make deductions or withholdings from payments to MANUFACTURER, then
DISTRIBUTOR shall pay such additional amounts to MANUFACTURER as may be
necessary to assure that the actual amount received by MANUFACTURER after
deduction or withholding (and after payment of any additional taxes due as a
consequence of such additional amount) shall equal the amount that would have
been received if such deduction or withholding were not required.

        C. All prices shall be subject to change or withdrawal at the discretion
of MANUFACTURER with or without advance notice, subject to the provisions of
Section 14. Notice of any changes in prices shall be given DISTRIBUTOR by
furnishing new Distributor Price Lists or written advises.

        D. MANUFACTURER represents and warrants that the prices and discounts,
if any, extended to DISTRIBUTOR in connection with the Products comply with all
applicable laws and are not, and will not be, less favorable than those extended
to other purchasers of similar quantities of Products from MANUFACTURER, or
other distributors.

                                                                               6

<PAGE>

13. F.O.B.

        A. All prices are F.O.B. MANUFACTURER'S domestic shipping facility.

        B. The mode of shipment from MANUFACTURER to the DISTRIBUTOR will be as
directed by the DISTRIBUTOR. MANUFACTURER will ship via the best way consistent
with the delivery schedule and MANUFACTURER'S requirement for traceability.

14. PRICE CHANGES AFFECT ONLY STANDARD PRODUCT SOLD AT STANDARD DISTRIBUTOR COST

        A. Price Increases -

        Prior to the effective date of a price increase, DISTRIBUTOR may order
Products for delivery within the term of this Agreement. All Products shipped
under orders submitted by DISTRIBUTOR prior to the effective date of any price
increase will be shipped and invoiced at the price in effect at the time of
order placement.

        B. Price Decreases -

        In the event MANUFACTURER decreases the price of any Product,
DISTRIBUTOR shall be entitled to a credit equal to the difference between the
price paid for the Product by DISTRIBUTOR, less any prior credits granted by
MANUFACTURER on such Products, and the new decreased price for the Product,
multiplied by the quantity of such Product in DISTRIBUTOR'S inventory on the
effective date of the decrease. Similar price adjustment, if appropriate, will
also be made on all Products in transit to DISTRIBUTOR on the effective date of
the price decrease and, for sixty (60) days after such effective date, on all
Products returned to DISTRIBUTOR. DISTRIBUTOR shall submit to MANUFACTURER,
within sixty (60) business days following the effective date of such price
decrease or the date DISTRIBUTOR actually receives notice thereof, whichever
occurs later, a report of the Products subject to the price decrease. All
Products shipped after the effective date of any price decrease will be shipped
and invoiced at the price in effect at the time of shipment.

15. ORDERS

        A. Orders for Products placed by DISTRIBUTOR shall be accepted subject
to those terms set forth in this Agreement. Any terms and conditions presented
on orders placed by DISTRIBUTOR, which are in conflict with this Agreement,
shall be inapplicable to the sale without the express written approval of
MANUFACTURER.

        B. Orders shall describe the Products ordered, the quantities, shall
request delivery dates, shall set forth prices and shall provide shipping
instructions. MANUFACTURER will acknowledge each such order in writing at the
earliest possible date, but in any event within ten (10) business days following
receipt. In such acceptance, MANUFACTURER will confirm the requested shipment
date or specify an acknowledged shipment date. If the acknowledged

                                                                               7

<PAGE>

shipment date is more than thirty (30) days later than DISTRIBUTOR'S requested
shipment date, DISTRIBUTOR, at its election, may cancel the order without
penalty.

        C. Cancellations and Reschedules -

           1. Orders may not be canceled or rescheduled within thirty (30) days
of acknowledged delivery.

           2. DISTRIBUTOR may, upon at least thirty (30) days prior written
notice, reschedule the Acknowledged Shipment Date of, or cancel, any order. Any
such rescheduling or cancellation of deliveries shall be at no charge to
DISTRIBUTOR.

        D. Drop Shipments -

        Shipments to a DISTRIBUTOR customer will be made only if the quantity
exceeds the last column pricing established by the MANUFACTURER.

        E. Early Shipments -

        If any Products are delivered more than 2 weeks prior to their
Acknowledged Shipment Date, DISTRIBUTOR shall have the right in its discretion
to accept or reject any such delivery. If MANUFACTURER is notified of
DISTRIBUTOR'S intention to return any such delivery, it shall promptly issue a
Return Material Authorization. Notwithstanding the acceptance of such delivery
or any other term or provision in this Agreement, DISTRIBUTOR shall not become
obligated to pay any invoices submitted therefore until forty-five (45) days
after the Acknowledged Shipment Date.

16. TITLE AND RISK OF LOSS

        A. The title, risk of loss and right of possession to any Product sold
to the DISTRIBUTOR shall remain a part of MANUFACTURER until shipped F.O.B.
Factory to DISTRIBUTOR. The title, risk of loss and right of possession to any
Product returned to MANUFACTURER by DISTRIBUTOR, which return is authorized by
MANUFACTURER, shall remain in DISTRIBUTOR until received by MANUFACTURER at its
plant, whereupon title and risk of loss shall pass to MANUFACTURER.

           B. Until the purchase price and all other charges payable to
MANUFACTURER hereunder have been received in full, MANUFACTURER hereby retains
and DISTRIBUTOR hereby grants to MANUFACTURER a security interest in the
Products delivered to DISTRIBUTOR and any proceeds there from. DISTRIBUTOR
agrees to promptly execute all documents reasonably requested by MANUFACTURER to
perfect and protect such security interest. In the event DISTRIBUTOR fails
promptly to execute such documents, DISTRIBUTOR hereby appoints MANUFACTURER its
attorney-in-fact for the sole purpose of

                                                                               8

<PAGE>

executing such documents, which appointment shall be a power coupled with an
interest and shall be irrevocable.

        C. DISTRIBUTOR shall inspect all Products upon receipt thereof, and
DISTRIBUTOR may reject any item that fails substantially to conform to the then
current Product specifications. To reject a Product, DISTRIBUTOR shall within
five (5) working days of receipt of such Product notify MANUFACTURER in writing
or by facsimile of its rejection and request a Return Material Authorization
(R.M.A.) number. Within ten (10) working days of receipt of the R.M.A. number,
DISTRIBUTOR shall return the rejected Product to MANUFACTURER'S designated
return facility, freight prepaid and properly insured, in its original shipping
carton with the R.M.A number displayed on the outside of the carton.

        D. If MANUFACTURER confirms the defect, MANUFACTURER shall, at
MANUFACTURER'S option and expense, either repair or replace the Product.
MANUFACTURER shall reimburse DISTRIBUTOR for the shipping charges to return
properly rejected Products and shall pay the shipping charges for the delivery
of such repaired or replacement Products to DISTRIBUTOR; otherwise, DISTRIBUTOR
shall be responsible for all shipping charges.

17. NEW PRODUCT STOCKING

        A. MANUFACTURER and DISTRIBUTOR shall agree on the appropriate initial
minimum level of inventory of each Product to be stocked by DISTRIBUTOR. Each
new Product of MANUFACTURER shall also be subject to stocking at a mutually
agreed initial minimum inventory level. The order and stocking of such new
product could be in conjunction with MANUFACTURER Advertising/Announcement in
which the DISTRIBUTOR will have Product on the shelf at the time of such
announcement. Non-periodic return within first year of slow or non-moving
recommended inventory is available to DISTRIBUTOR.

        B. For the first twelve (12) months after appointment, a new DISTRIBUTOR
will have the right to return an amount up to 50% of their initial stocking
order with no restocking charge or offsetting order required.

        C. Products in this section shall not be counted as "stock rotation" for
purposes of computing the amount of Products returnable by DISTRIBUTOR.

18. STOCK ROTATION APPLIES ONLY TO STANDARD PRODUCT BOUGHT AT STANDARD
DISTRIBUTOR COST

        A. Slow-moving inventory, as defined by DISTRIBUTOR, may be returned for
a credit up to a value of five (5) percent of the prior 6-month purchases, with
approval of MANUFACTURER and subject to the following conditions:

           1. Product shall be returned freight pre-paid at the DISTRIBUTOR'S
expense within 30 days of authorization by MANUFACTURER.

                                                                               9

<PAGE>

           2. The period for stock rotations will be twice every twelve (12)
months and will be allowed only within MANUFACTURER'S Fiscal Month of February
and MANUFACTURER'S Fiscal Month of August in accordance with the MANUFACTURER'S
annual calendar.

           3. An offsetting purchase order for an equal dollar month must
accompany the request for the return. The requested delivery schedule of the
offsetting purchase order must be within 60 days of the order placement and is
non-cancelable.

           4. All Products returned must be in the original condition as shipped
by MANUFACTURER.

        B. DISTRIBUTOR may apply to MANUFACTURER for authorization to return
that portion of its inventory in an amount not exceeding five (5) percent of Net
Total Dollar Purchases of MANUFACTURER Products by DISTRIBUTOR during the
immediately preceding six (6) month period. Credit issued for such returned
Products will be based upon the price paid by DISTRIBUTOR less any prior credits
granted by MANUFACTURER on the returned Product.

19. NEW PRODUCT

        MANUFACTURER will give DISTRIBUTOR at least thirty (30) days prior
notice of the introduction of any new Products that preclude or materially limit
DISTRIBUTOR from selling like Products in its inventory and shall work with
DISTRIBUTOR to move the effected inventory through resale for ninety (90) days.
If, after the above efforts, effected Product still remains in DISTRIBUTOR'S
inventory, MANUFACTURER agrees to replace it with the new products within one
hundred twenty (120) days of the official public announcement of such new
products or MANUFACTURER'S first shipment of the New Product, whichever occurs
first.

20. DISCONTINUANCE AND OBSOLESCENCE

        A. MANUFACTURER reserves the right to discontinue the manufacture or
sale of, or otherwise render or treat as obsolete, any or all of the Products
covered by this Agreement upon at least thirty (30) days prior written notice to
DISTRIBUTOR.

        B. DISTRIBUTOR may, within sixty (60) days following receipt of such
notice, notify supplier in writing of its intention to return any or all
discontinued or obsolete Products which remain in its inventory and shall
receive a credit for such Products equal to the net price paid by DISTRIBUTOR,
less any prior credits granted by MANUFACTURER on the returned product.
DISTRIBUTOR may make such returns from one or more stocking locations. Products
must be returned within 30 days of the date of DISTRIBUTOR'S receipt of
MANUFACTURER'S Return Material Authorization.

        C. MANUFACTURER shall pay all freight and shipping charges in connection
with any such returns for discontinuance or obsolescence. DISTRIBUTOR shall not
count returns of

                                                                              10

<PAGE>

Products under this section as "stock rotation" for purposes of computing the
amount of Products returnable.

21. MODIFICATION OF PRODUCTS

        A. MANUFACTURER shall give DISTRIBUTOR at least ninety (90) days prior
written notice of all engineering modifications that will affect Products in
DISTRIBUTOR'S inventory if such changes affect form, fit, or function. If these
modifications preclude or materially limit DISTRIBUTOR'S inventory from selling
once the engineering modifications are implemented. MANUFACTURER will work with
DISTRIBUTOR to move the affected inventory through resale or repurchase for
ninety (90) days. If after the above efforts, affected Product still remains in
DISTRIBUTOR'S inventory, MANUFACTURER agrees to replace it with upgraded
Products within one hundred twenty (120) days of the official public
announcement of such modification or MANUFACTURERS first shipment of the
modified Product, whichever occurs first.

        B. MANUFACTURER shall pay all freight and shipping charges in connection
with any such return or replacements. DISTRIBUTOR shall not count returns of
Products under this section as "stock rotation" for purposes of computing the
amount of Products returnable.

22. RETURN MATERIAL AUTHORIZATION

        A. All authorized returns shall be shipped to MANUFACTURER'S domestic
facility, and must display the appropriate MANUFACTURER Return Material
Authorization number on containers in which the returned Product is shipped.

        B. Unauthorized returns will be reshipped to DISTRIBUTOR Freight
Collect.

        C. Upon final approval by MANUFACTURER of credit for any returned
Product, such credit shall be computed on the basis of the price paid by
DISTRIBUTOR, less any prior credits granted by MANUFACTURER.

23. WARRANTY

        A. The "Warranty Term" for a particular Product is twelve (12) months
from MANUFACTURER'S delivery of such Product F.O.B. as specified in Section 16.

        B. MANUFACTURER shall warrant each Product against defects in material
and workmanship under normal use and service during the Product's Warranty Term.
Provided that MANUFACTURER has received a request in writing or by facsimile
authorization for warranty service not later than thirty (30) days after the
expiration of the Warranty Term, MANUFACTURER shall repair or replace any
defective Product, or issue a credit or refund, based on the purchase price
paid. MANUFACTURER shall have the right to elect which of the foregoing options
it wishes to invoke. MANUFACTURER shall pay, or refund the amount of, shipping
charges for any defective Products returned under this section.

                                                                              11

<PAGE>

        C. The express warranties set forth in this Section 23 specifically
exclude and do not apply to defects to a Product: (a) caused through no fault of
MANUFACTURER during shipment to or from DISTRIBUTOR; (b) caused by the use or
operation of Products in an application or environment other than that specified
by MANUFACTURER; (c) caused by modifications or alterations made to the Products
by DISTRIBUTOR or any third party; (d) caused by maintenance performed on the
Products by DISTRIBUTOR or any third party; or (e) which are the result of the
Products being subjected to unusual physical or electrical stress.

        D. EXCEPT FOR THE ABOVE EXPRESS LIMITED WARRANTIES, MANUFACTURER MAKES
AND DISTRIBUTOR RECEIVES NO WARRANTIES OR CONDITIONS ON THE PRODUCTS, EXPRESS,
IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS AGREEMENT OR COMMUNICATION
WITH DISTRIBUTOR. MANUFACTURER SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OR
CONDITION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. MANUFACTURER
MAKES THE FOREGOING LIMITED WARRANTY SOLELY TO DISTRIBUTOR FOR DISTRIBUTOR'S
SOLE BENEFIT.

        E. DISTRIBUTOR shall not make any representation, promise guarantee or
warranty, nor is authority given to assume to create obligations on behalf of
MANUFACTURER.

        F. In all warranty or quality returns, final approval by MANUFACTURER as
to credit, or replacement shall depend upon inspection and/or testing of the
returned Product by MANUFACTURER. No credit or replacement will be given for
returned Product that falls into one or more of the exclusions set forth in
Section 23 and such Product will be returned to DISTRIBUTOR, Freight Collect.

24. REPURCHASES

        By mutual agreement between MANUFACTURER and DISTRIBUTOR, and upon
receipt of written request by MANUFACTURER, DISTRIBUTOR shall deliver F.O.B.
point of origin such reasonable quantities of products out of DISTRIBUTOR'S
inventory to such regular customers of MANUFACTURER with whom MANUFACTURER has
an agreement as may be designated by MANUFACTURER and as are called for under
orders issued by such customers.

25. SPECIAL PURCHASES

        MANUFACTURER and DISTRIBUTOR may at any time during the term enter into
separate agreements for the special purchase of other Products including
non-standard Products and Products in greater quantities than those set forth in
MANUFACTURER'S then current Published Price List, and such agreements shall be
subject to all terms and conditions hereof.

26. NOTICES

        All notices, except for termination, shall be sent by mail, postage
pre-paid to MANUFACTURER and DISTRIBUTOR to the addresses stated at the outset
of this Agreement,

                                                                              12

<PAGE>

or such other places as either party may designate in writing. Notification of
Termination must be sent by Registered Mail.

27. TERMINATION

        A. MANUFACTURER or DISTRIBUTOR may at any time terminate this Agreement
without cause and for its convenience by giving thirty (30) days prior written
notice to the other, via Registered Mail. Both MANUFACTURER and DISTRIBUTOR
represent that they have considered the making of expenditures in preparing to
perform under this Agreement, as well as the possible losses, which might result
in the event of any termination of the Agreement. Both parties acknowledge that
neither party shall in anyway be liable to the other for any loss, expense or
damage, including special, consequential, or incidental damages, by reason of
any termination of this Agreement. Without limiting the foregoing, neither party
shall be liable to the other, because of such termination, for compensation,
reimbursement or damages on account of the loss of prospective profits or
anticipated sales or on account of expenditures, inventory, investments, leases
or commitments in connection with the business or goodwill of MANUFACTURER or
DISTRIBUTOR.

        B. This Agreement shall also terminate, immediately upon notice by
MANUFACTURER:

           1. In the event that any legislation or exchange controls then in
effect under applicable law preclude DISTRIBUTOR from making payments to
MANUFACTURER in United States currency for a period of sixty (60) days;
provided, however, that termination under this subsection shall not relieve
DISTRIBUTOR of its payment obligations under this Agreement; or

           2. Upon the enactment of any law, decree, or regulation by the
government of the Territory which would impair or restrict (A) the right of
MANUFACTURER to terminate or elect not to renew this Agreement as herein
provided, (B) MANUFACTURER'S right, title, or interest in the Products or the
intellectual property rights therein, (C) MANUFACTURER'S rights to receive the
payments under this Agreement, or (D) MANUFACTURER'S or DISTRIBUTOR'S ability to
market, sell, or distribute the Products in the Territory.

DISTRIBUTOR agrees to give MANUFACTURER prompt written notice of any law,
decree, or regulation covered by this Section 27.B.

        C. Upon termination of this Agreement, DISTRIBUTOR shall make such
disposition of price lists, advertising matter and other materials furnished by
MANUFACTURER as MANUFACTURER may direct. MANUFACTURER'S name, MANUFACTURER'S
Trademarks, and similar identifying symbols shall not be displayed or used by
DISTRIBUTOR thereafter.

        D. In the event of any termination, MANUFACTURER shall, if requested to
do so by DISTRIBUTOR, honor any open DISTRIBUTOR purchase order outstanding as
of the date of notice of termination for delivery during a period of up to 90
days after the effective date of

                                                                              13

<PAGE>

termination. Notwithstanding anything herein to the contrary, in the event that
DISTRIBUTOR retains by statute the right to distribute Products in the Territory
to any customer or in any country after expiration or termination of this
Agreement, then the terms and conditions of this Agreement shall remain in
effect as to such customers or countries, as the case may be, until such
activities cease.

        E. Upon termination of this Agreement for whatever reason, such
termination shall be without prejudice to any remedy of either party for the
recovery of any money due under this Agreement.

        F. In the event of termination of this Agreement by MANUFACTURER,
DISTRIBUTOR agrees to sell and MANUFACTURER agrees to purchase DISTRIBUTOR'S
inventory of Products that are unaltered in any manner from the original form
and design, subject to test, inspection and acceptance by MANUFACTURER. The
price to be paid by MANUFACTURER for such inventory shall be the price the
DISTRIBUTOR purchased the inventory for, less any prior credits granted by
MANUFACTURER. MANUFACTURER shall pay all freight and shipping charges in
connection with such repurchase.

        G. In the event of termination of the agreement by DISTRIBUTOR,
MANUFACTURER agrees to repurchase all inventories of DISTRIBUTOR at the price
the products were purchased from MANUFACTURER, less any prior credits granted by
MANUFACTURER. DISTRIBUTOR agrees to ship such inventory F.O.B. MANUFACTURERS
domestic facility.

        H. Monies for repurchased inventory will be paid by MANUFACTURER to
DISTRIBUTOR within thirty (30) days of receipt of said inventory. The credit
will be computed using the price paid by DISTRIBUTOR, less any prior credit
granted by MANUFACTURER.

        I. The provisions of Sections 5C, 5F, 5I, 7, 8, 23, 27, 28, 29, and 34
shall survive termination of this Agreement for any reason.

28. INDEMNIFICATION

        A. DISTRIBUTOR agrees to indemnify, defend, and hold MANUFACTURER and
its directors, officers, employees, and agents harmless from, and against any
and all claims (including those for personal injury or death) and liabilities
(including attorneys' and other professional fees and other costs of litigation)
arising out of or attributable to the marketing, distribution, or sale of
Products, where and to the extent any associated liability for such liability is
alleged to have been caused by the negligence, willful misconduct or other fault
of DISTRIBUTOR, or its employees or agents and/or any breach of this Agreement
by DISTRIBUTOR.

        B. DISTRIBUTOR agrees that MANUFACTURER has the right to defend, or at
its option to settle, and MANUFACTURER agrees, at its own expense, to defend or
at its option to settle, any claim, suit or proceeding brought against
DISTRIBUTOR or its customer on the issue of infringement or misappropriation of
any third party patent, maskwork right, trade secret,

                                                                              14

<PAGE>

copyright or trademark, each of the foregoing in the Territory, by Products
distributed by DISTRIBUTOR in the manner permitted in this Agreement, subject to
the limitations hereinafter set forth. MANUFACTURER shall have sole control of
any such action or settlement negotiations, and MANUFACTURER agrees to pay,
subject to the limitations hereinafter set forth, any final judgment entered
against DISTRIBUTOR or its customer on such issue in any such suit or proceeding
defended by MANUFACTURER. DISTRIBUTOR agrees that MANUFACTURER at its sole
option shall be relieved of the foregoing obligations unless DISTRIBUTOR or its
customer notifies MANUFACTURER promptly in writing of such claim, suit or
proceeding and gives MANUFACTURER authority to proceed as contemplated herein,
and, at MANUFACTURER'S expense, gives MANUFACTURER proper and full information
and assistance to settle and/or defend any such claim, suit or proceeding. If
the Products, or any part thereof, are, or in the opinion of MANUFACTURER may
become, the subject of any claim, suit or proceeding for infringement of any
patent, copyright or trademark, or if it is adjudicatively determined that the
Products, or any part thereof, infringe any copyright or trademark, or if the
distribution or use of the Products, or any part thereof, is, as a result,
enjoined, then MANUFACTURER may, at its option and expense: (i) procure for
DISTRIBUTOR and its customers the right under such patent, copyright or
trademark to distribute or use, as appropriate, the Products or such part
thereof; (ii) replace the Products, or part thereof, with other suitable
Products or parts; (iii) suitably modify the Products, or part thereof; or (iv)
if the use of the Products, or part thereof, is prevented by injunction or if
the foregoing alternatives cannot be accomplished on a commercially reasonable
basis, require DISTRIBUTOR to return all of the Products in inventory and refund
the aggregate payments paid therefore by DISTRIBUTOR. MANUFACTURER shall not be
liable for any costs or expenses incurred without its prior written
authorization.

        C. Notwithstanding the provisions of Section 28.B., MANUFACTURER assumes
no liability for (i) any infringement claims with respect to any product in or
with which any of the Products may be used but not covering the Products
standing alone; (ii) any trademark infringement involving any marking or
branding not applied by MANUFACTURER or involving any marking or branding
applied at the request of DISTRIBUTOR; (iii) the modification of the Products,
or any part thereof, unless such modification is made by MANUFACTURER; or (iv)
infringement resulting from DISTRIBUTOR'S distribution of Products after a
recall as specified in Section 28.B. (iv) above, which distribution shall be a
breach of this Agreement and result in the indemnification used for this Section
28.A.

        D. THE FOREGOING PROVISIONS OF THIS SECTION 28 STATE THE ENTIRE
LIABILITY AND OBLIGATION OF MANUFACTURER AND THE EXCLUSIVE REMEDY OF DISTRIBUTOR
AND ITS CUSTOMERS WITH RESPECT TO ANY ALLEGED INFRINGEMENT OF PATENTS,
COPYRIGHTS, TRADEMARKS, OR OTHER INTELLECTUAL PROPERTY RIGHTS BY THE PRODUCTS.

29. CONFIDENTIAL INFORMATION

        DISTRIBUTOR acknowledges that by reason of its relationship with
MANUFACTURER hereunder it will have access to certain other information and
materials concerning the Products and MANUFACTURER'S business, plans, customers
and technology

                                                                              15

<PAGE>

that are confidential and of substantial value to MANUFACTURER, which value
would be impaired if such information were disclosed to third parties.
DISTRIBUTOR agrees that it shall not use in any way for its own account or the
account of any third party, nor disclose to any third party, any such
confidential information revealed to it by MANUFACTURER. DISTRIBUTOR shall take
every reasonable precaution to protect the confidentiality of such information,
including, at the request of MANUFACTURER, the entry by DISTRIBUTOR'S agents and
employees into confidentiality agreements in a form approved by MANUFACTURER,
prohibiting any disclosure to third parties of confidential information provided
by MANUFACTURER. DISTRIBUTOR shall not publish any technical description of any
Product or other confidential information of MANUFACTURER beyond the description
published by MANUFACTURER. In the event of termination or expiration of this
Agreement, there shall be no use or disclosure by DISTRIBUTOR, its agents, or
employees of any confidential information of MANUFACTURER, and DISTRIBUTOR shall
not manufacture or have manufactured any products utilizing any of
MANUFACTURER'S confidential information. Upon such termination, DISTRIBUTOR
shall deliver to MANUFACTURER all copies within its possession or within its
control of customer lists, catalogues, specifications, proposals, quotations,
price lists, contracts and all other documents and data relating to the Products
or the conduct of MANUFACTURER'S business.

30. FORCE MAJEURE

        Nonperformance under this Agreement shall be excused, and neither party
shall be liable for any loss, damage, penalty or expense, to the extent that
such performance is rendered impossible or delayed by fire, flood, acts of God
or the public enemy, acts of the Government, labor difficulties, riot, inability
to obtain materials or any other cause where the failure to perform or delay is
beyond the reasonable control of the non-performing party and without the
negligence of such party.

31. INVALIDITY OF PROVISIONS

        In the event that any term or provision of this Agreement shall be
deemed by a court of competent jurisdiction to be overly broad in scope,
duration or area of applicability, the court considering the same shall have the
power and hereby is authorized and directed to modify such term or provision to
limit such scope, duration or area, or all of them, so that such term or
provision is no longer overly broad and to enforce the same as so limited.
Subject to the foregoing sentence, in the event any provision of this Agreement
shall be held to be invalid or unenforceable for any reason, such invalidity or
unenforceability shall attach only to such provision and shall not affect or
render invalid or unenforceable any other provision of this Agreement.

32. ASSIGNMENT

        Neither party shall have the right to assign this Agreement or any
rights hereunder without the prior written consent of the other. For purposes
hereof, the term "assign" shall include, without limitation, a merger, sale of
assets or business, or other transfer of control by operation of law or
otherwise.

                                                                              16

<PAGE>

33. AUTHORITY

        Both parties represent and warrant to each other that they have the
right and lawful authority to enter into this Agreement, and that there are no
other outstanding agreements or obligations inconsistent with the terms and
provisions between the parties.

34. GENERAL

        A. This Agreement supersedes and cancels all prior Agreements between
the parties, written, oral or implied; except that it shall not relieve either
party from the payment of any debit owed the other party under any prior
Agreement there between.

        B. No modification, change or amendment to neither this Agreement, nor
any waiver of any rights in respect hereto, shall be effective unless in writing
signed by the parties.

        C. In the event of a conflict or inconsistency between the terms of this
Agreement and those of any order, quotation, solicitation or other communication
from one party to the other, the terms of this Agreement shall be controlling.

        D. This Agreement is made under and shall be construed by the laws of
the State of California, U.S.A., without reference to provisions of conflicts of
laws. If a court of competent jurisdiction deems any provision unenforceable,
such provision shall be severable and the remaining provisions shall continue in
full force and effect. The parties expressly disclaim the application of the
United Nations Convention on the International Sale of Goods. Each party
consents to the jurisdiction of the state courts and federal courts in the
Northern District of California, U.S.A., which courts shall have the exclusive
jurisdiction and venue to resolve any dispute arising out of this Agreement.
Each party hereto agrees and consents to service of process by registered mail
to the address listed in this Agreement.

        E. This Agreement shall be made in the English language, which language
shall be controlling in all respects, and all versions hereof in any other
language shall not be binding on the parties hereto. All communications and
notices to be made or given pursuant to this Agreement shall be in the English
language.

                                                                              17

<PAGE>

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE SIGNED THIS AGREEMENT AS OF THE YEAR
AND DAY FIRST WRITTEN.

MICRO LINEAR CORPORATION                    TEKSEL CORPORATION, LTD.

By:  /s/ David C. Neubauer                  By:  /s/ Ken Katsumoto
     -------------------------------              ------------------------------

Title: _David C. Neubauer, V.P. Sales       Title: Ken Katsumoto, Group Director
       ------------------------------              -----------------------------

Date:  April 8, 2002                        Date:  April 4, 2002
       ------------------------------              -----------------------------

                                                                              18

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