Document:

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                                                                   EXHIBIT 10.12

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF
THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS
ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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                          PRODUCT PROCUREMENT AGREEMENT

                                 BY AND BETWEEN

                         CTC COMMUNICATIONS GROUP, INC.

                                       AND

                           ACCELERATED NETWORKS, INC.

                                      DATED

                                 APRIL 21, 1999

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<PAGE>   2

                       PRODUCT PROCUREMENT AGREEMENT (PPA)
                              FOR STRATEGIC ACCOUNT

        THIS PRODUCT PROCUREMENT AGREEMENT (PPA) FOR STRATEGIC ACCOUNT (this
"AGREEMENT"), effective as of this 21st day of April, 1999 (the "EFFECTIVE
DATE"), is made and entered into by and between ACCELERATED NETWORKS, INC., a
California corporation with its principal place of business at 301 Science
Drive, Moorpark, CA 93021 ("SELLER"), and CTC COMMUNICATIONS CORP., a
Massachusetts corporation with its principal place of business at 360 2nd
Avenue, Waltham, MA 02451 ("CUSTOMER"). CUSTOMER and SELLER are also hereinafter
referred to individually as a "PARTY" and collectively as the "PARTIES".

        WHEREAS, CUSTOMER desires to expand its network throughout the
Northeastern United States, and to facilitate such expansion, CUSTOMER wishes to
purchase from SELLER certain products (the "PRODUCT" or "PRODUCTS") more fully
described on Attachment A hereto at the discounted rates (the "DISCOUNTS") more
fully described on Attachment B hereto; and

        WHEREAS, SELLER desires to provide the Products at the Discounts to
CUSTOMER pursuant to the terms and conditions of this Agreement.

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

        1. PRODUCT ORDERS.

        1.1 Initial Purchase Order. Upon execution of this Agreement, CUSTOMER
shall submit a blanket purchase order (the "INITIAL PURCHASE ORDER") for the
Products having an aggregate purchase price of at least (US$8,000,000). CUSTOMER
will periodically submit purchase orders to SELLER for release of the Products
covered by the Initial Purchase Order as per the timeframes described in
Attachment B. CUSTOMER may specify the carrier and mode of transportation for
shipment of the Products. Unless specifically stated to the contrary in a
particular purchase order signed by representatives of both Parties, the terms
and conditions of this Agreement shall be controlling over any inconsistent or
conflicting terms or provisions contained in any purchase order pursuant hereto.

        1.2 Subsequent Purchase Orders. During the term of this Agreement,
CUSTOMER shall submit purchase orders in addition to the Initial Purchase Order
in order to meet the Minimum Purchase Commitment as indicated and defined on
Attachment B hereto. The terms of this Agreement shall apply to all such
subsequent purchase orders.

                                                                              1.
<PAGE>   3

        1.3 Submission of Orders. All purchase orders, including purchase orders
for release of the Products, shall be sent by fax to the following number
(followed by a hard copy sent by mail pursuant to Section 13.2 hereof):

        ACCELERATED NETWORKS, INC;
        ATTN:  SALES ADMINISTRATION
        FAX:  (805) 553-9690
        TEL:  (805) 553-9680

        1.4 Cancellation and Rescheduling. CUSTOMER may cancel delivery of
Products pursuant to a purchase order without charge upon written notice to
SELLER not less than [***] prior to the scheduled delivery date. CUSTOMER will
be responsible for payment of one hundred percent (100%) of the amount of any
portion of a purchase order that is canceled less than [***] prior to the
scheduled delivery date. CUSTOMER may extend the date for delivery of Products
pursuant to a purchase order [***] without charge upon written notice to SELLER
not less than [***] prior to the scheduled delivery date; provided, that, the
new delivery date is on or before the: [***].

        1.5 Pricing. Product prices payable by CUSTOMER and applicable Discounts
are set forth in Attachment B. Prices are exclusive of all taxes, customs,
duties or similar tariffs and fees, shipping and insurance charges which SELLER
may be required to pay or collect upon the sale or delivery of the Products or
upon collection of the sales price, all of which shall be CUSTOMER's
responsibility. SELLER shall promptly extend to CUSTOMER any price reductions
made by SELLER in its generally available, then current published list prices
for Software or Products. Such price reduction shall apply to all purchase
orders received on or after the effective date of such price reduction.

        1.6 Payment. Terms of payment are net thirty (30) days of CUSTOMER's
receipt of SELLER's invoice, unless CUSTOMER fails to pay within thirty (30)
days of receipt of SELLER's invoice three (3) times within any twelve (12) month
period, in which case payment terms shall be, at SELLER's election, cash on
delivery (C.O.D.), in advance of delivery or by irrevocable letter of credit in
favor of SELLER. All payments shall be made in U.S. dollars in the United
States. The payment date shall be deemed the date that CUSTOMER initiates the
wire transfer or the date CUSTOMER mails the payment pursuant to the
requirements of Section 13.2.

        2. DELIVERY AND ACCEPTANCE.

        2.1 Delivery. Products shall be delivered free on board (FOB) SELLER's
facility or other place of shipment. Shipments will be made to the delivery
address specified on CUSTOMER's purchase order. In the absence of a specified
delivery address on the purchase order, delivery will be made to CUSTOMER's
facility, or any other standard location designated by CUSTOMER Shipping
arrangements shall be mutually agreed upon by the Parties prior to

-------------
        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                              2.
<PAGE>   4

delivery. SELLER shall use its best efforts to fill CUSTOMER's orders up to the
committed units on Attachment B within [***] of receiving a purchase order, and
shall use its commercially reasonable efforts to fill (by full or partial
shipment) CUSTOMER's purchase orders for Products in excess of those indicated
on Attachment B within [***] of receiving a purchase order.

        2.2 Inspection and Acceptance of Deliveries. CUSTOMER shall have the
right to visually inspect all Products ordered pursuant to this Agreement for a
period of [***] following receipt of delivery. If any delivered Product fails to
conform to the applicable purchase order or release, in whole or in part,
CUSTOMER may reject the delivery and CUSTOMER shall promptly return the rejected
Product(s) to SELLER at SELLER's risk and expense. Promptly following SELLER's
general release of Software (as defined below) SELLER will provide CUSTOMER with
a reasonable number of copies of such Software release for the sole purpose of
performing acceptance testing during the [***] following receipt of the
applicable Software copies (the "ACCEPTANCE TEST PERIOD"). If any Software, or
portion thereof, is determined by CUSTOMER during the Acceptance Test Period to
fail to conform to the applicable specifications in any material adverse way,
then CUSTOMER may reject the delivery and CUSTOMER shall promptly return the
rejected Software to SELLER at SELLER's risk and expense. CUSTOMER shall notify
SELLER if such Software release fails to conform to the applicable
specifications in any materially adverse way, specifying in reasonable detail so
as to permit SELLER to reproduce the failures. CUSTOMER's failure to notify
SELLER of any such failure of the Software release before the end of the
applicable Acceptance Test Period shall be deemed acceptance of Software
release. Upon receipt of the rejected Product(s), or Software SELLER shall
promptly ship replacement Product(s) or Software to CUSTOMER, at SELLER's risk
and expense until Product(s) or Software is reasonably determined by CUSTOMER to
be satisfactory as per applicable specifications. CUSTOMER shall have the right
to test the replacement Product(s), including the Software, as provided above in
this Section 2.2. SELLER shall ship the remaining portion of the order within
five (5) business days of the earlier of the date such CUSTOMER notifies SELLER
of its acceptance of the Software or the date CUSTOMER is deemed to have
accepted such Software.

        2.3 Pre-shipment Review. If requested by CUSTOMER, a representative of
CUSTOMER may participate, to the extent applicable, in SELLER's preshipment
configuration, prestaging and inspection of Products at SELLER's facility or any
reasonable location where Products are held or stored as determined by SELLER.

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        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                              3.
<PAGE>   5

        3. SOFTWARE LICENSE.

        3.1 License Grant. SELLER grants CUSTOMER, subject to the terms and
conditions set forth in this Agreement, a non-exclusive, non-transferable,
non-sublicensable perpetual license to use the software, including any
enhancements, upgrades, and patches, used in connection with or comprising any
Product (including software contained in firmware embedded in a Product) (the
"SOFTWARE"). All copies of the Software are licensed and not sold. As between
the Parties, SELLER retains all title to (except as expressly licensed by
SELLER), and rights (including all intellectual property and proprietary rights
anywhere in the world) and interest in the Software.

        3.2 License Restrictions. CUSTOMER shall not, and shall use commercially
reasonable efforts to deter others from, (i) copying, modifying, distributing,
or creating any derivative work of the Software or including the Software in any
other software, (ii) deleting, altering or obscuring any copyright or other
notice or proprietary legend appearing in the Software or on any documentation,
media, master or package materials for the Software provided by SELLER or (iii)
reverse assembling, decompiling, reverse engineering (except to the extent
permitted by applicable law) or otherwise attempting to derive the source code
(or the underlying ideas, structure, sequence, organization or algorithms) from
the Software.

        3.3 Liability for Infringement. SELLER shall defend CUSTOMER against any
suit, claim, proceeding or threatened suit brought against CUSTOMER alleging
that the licensing to, or use by CUSTOMER of, any Software or Product furnished
hereunder infringes any patent ("INFRINGEMENT CLAIM"). SELLER shall pay all
litigation costs, reasonable attorneys' fees, settlement payments and damages
awarded or resulting from any such suit, claim, or proceeding provided, that,
CUSTOMER (i) notifies SELLER in writing within a reasonable time of its actual
knowledge of any such claim, suit, or proceeding; (ii) gives SELLER the right to
control or direct the investigation, preparation, defense and settlement of any
claim, suit or proceeding related thereto; and (iii) gives SELLER reasonable
assistance and cooperation for the defense or settlement thereof. SELLER shall
not be liable for, and CUSTOMER shall defend, indemnify and hold SELLER harmless
in respect of, any suit, claim, proceeding or threatened suit and all litigation
costs, reasonable attorneys' fees, settlement payments and damages awarded or
resulting from any claim, suit or proceeding based on (i) CUSTOMER's willful,
knowing, or deliberate infringement of a patent, copyright, trade secret,
trademark or other proprietary right; (ii) any Software, Product or portion
thereof (a) not supplied by SELLER to CUSTOMER or directed by SELLER that
CUSTOMER purchase, (b) designed in accordance with CUSTOMER's specifications, or
to the extent the infringement results from compliance with such specifications,
(c) modified by CUSTOMER, to the extent the infringement results from such
modification, (d) combined with other products, processes or materials not
supplied, specified or distributed by SELLER, to the extent the infringement
results from such combination, (e) where CUSTOMER continues allegedly infringing
activity after being notified thereof and after being provided with a
non-infringing modification or workaround that would have avoided the alleged
infringement, or (f) where CUSTOMER's use of the Software or Product is incident
to an infringement not resulting primarily from such Software or Product or is
intentionally outside the scope of the license granted in Section 3.1. Neither
Party may enter into any settlement or other agreement without prior written
consent of the other Party under which such other Party would be obligated to
make any payment or incur any liability. If any Software

                                                                              4.
<PAGE>   6

or any Product becomes, or in SELLER's reasonable opinion is likely to become,
the subject of an infringement claim, SELLER, in addition to providing
indemnity, may at SELLER's option (i) procure for CUSTOMER the right to continue
using the alleged infringing Software or Product; (ii) replace or modify the
same with equivalent or better Software or Product so that CUSTOMER's use is
non-infringing; or (iii) accept return of the affected portion of the Software
or Product and refund to CUSTOMER the depreciated value of the Software or
Product so returned (as amortized on a straight-line basis over three (3) years
from the Effective Date).

        4. MONTHLY MEETINGS. SELLER and CUSTOMER shall each designate one
representative to serve as a liaison with the other Party (each, a
"REPRESENTATIVE" and collectively the "REPRESENTATIVES"). The Representatives
will meet, either in person or by telephone, to discuss in good faith matters
relating to this Agreement including Product delivery schedules, joint marketing
activities, sales training needs, price changes, review of the forecast and new
Product features and enhancements. Such meetings will take place on a monthly
basis at a mutually agreed upon location. Each Party shall bear its own costs
incurred in attending or participating in such meetings.

        5. SELLER'S WARRANTY.

        5.1 Product Warranty. SELLER warrants to CUSTOMER (i) For a period of
one (1) year from the date of acceptance, that the hardware Products shall be
free from material defects in materials and workmanship; (ii) for a period of
ninety (90) days from the date of acceptance, any existing Software shall
perform in accordance with applicable specifications in all material respects
identified in the user manual of the then current release and any new or
specially developed software or Product shall perform in accordance with
mutually agreeable documented specifications in all material respects; and (iii)
services performed by SELLER hereunder shall be performed in a professional and
workmanlike manner and in accordance with current industry standards. SELLER's
warranty does not extend to any Product that (a) is modified or altered by the
CUSTOMER or at the CUSTOMER's direction; (b) is not maintained to SELLER's
maintenance recommendations set forth in the applicable documentation actually
received by CUSTOMER; (c) is operated in a manner other than that specified by
SELLER, (d) has its serial number removed or altered; or (e) is treated with
abuse, negligence or other improper treatment (including, without limitation,
use outside the recommended environment).

        5.2 Remedies. Products delivered to CUSTOMER by SELLER hereunder which
do not comply With the, warranties in Sections 5.1, 5.4 or 5.5 hereof, and are
returned to SELLER during the applicable warranty period shall be repaired or
replaced at SELLER's option, at no cost to CUSTOMER. Subject to Section 10.4
hereof, if SELLER cannot or determines that it is not practical to, repair or
replace a returned Product, the price paid by CUSTOMER for such Product will be
credited and applied to future orders.

        5.3 Disclaimer. SELLER MAKES NO WARRANTIES (OTHER THAN AS EXPRESSLY
PROVIDED IN SECTIONS 5.1, 5.4, 5.5 AND 6 HEREOF) WITH RESPECT TO THE PRODUCTS OR
ANY SERVICES, AND DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. FURTHER,
SELLER DOES NOT WARRANT

                                                                              5.
<PAGE>   7

THE USE, OR THE RESULTS OF THE USE, OF THE PRODUCTS OR THAT ANY SOFTWARE WILL BE
ERROR-FREE.

        5.4 Year 2000 Compliance Warranty. SELLER represents and warrants (the
"YEAR 2000 WARRANTY") that (a) all calendar-related processing by the Products
of date data or of any system date shall not cause the Products to cease to
operate in accordance with their applicable specifications, (b) all data fields
for the date data contained in the Products are four-digit fields capable of
indicating century and millennium, and (c) that SELLER has verified through its
testing procedures that no change in the system date (including the change from
the year 1999 to the year 2000 and leap year calculations) will cause the
Products to cease to operate in accordance with their applicable specifications,
provided that, all other products and systems, including, without limitation,
hardware, software and firmware used in combination with the Products, properly
and accurately exchange date data with the Products.

        5.5 Infringement Warranty. SELLER represents and wan ants to the
CUSTOMER that, to the best of SELLER's knowledge at the time of each delivery of
Software or Products hereunder, such Software and Products do not infringe the
intellectual property rights of any third parties.

        6. OTHER REPRESENTATIONS AND WARRANTIES. The Parties represent, warrant
and covenant that (i) they shall comply with good business practices and all
laws and regulations relevant to this Agreement or the subject matter hereof;
(ii) they shall use the then current names used for the Products, provided that
all advertisements, promotional materials, packaging and anything else bearing
any trademark of the SELLER shall identify SELLER as the trademark owner of the
Products and shall be subject to SELLER's prior written approval, which approval
shall not be unreasonably withheld or delayed; (iii) they shall comply with all
export laws, restrictions, national security controls and regulations of the
United States or other applicable foreign agency or authority; and (iv) shall
not export or re-export, or allow the export or re-export of any Product or
Proprietary Information (as defined below) or any direct product thereof in
violation of any such restrictions, laws or regulations, or without all required
licenses and proper authorizations, to or from any Group D:I or E:2 country (or
national of such country) specified in the then current U.S. Export
Administration Regulations (or any successor supplement or regulations).

        7. LIMITATION OF LIABILITY. UNLESS CAUSED OR CONTRIBUTED TO BY A PARTY'S
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (I) ANY AMOUNTS IN
EXCESS IN THE AGGREGATE OF THE AMOUNTS PAID TO IT (IN THE CASE OF SELLER) OR (IN
THE CASE OF CUSTOMER) PAID OR OWED BY IT HEREUNDER DURING THE TWELVE (12) MONTH
PERIOD PRIOR TO DATE THE CAUSE OF ACTION AROSE, (II) ANY INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOST PROFITS OR LOST DATA OR (III) COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES. THE LIMITATIONS OF THIS SECTION 7
SHALL NOT APPLY TO ANY BREACH OF SECTIONS 3.2, 3.3 OR 9.

                                                                              6.
<PAGE>   8

        8. RELATIONSHIP OF THE PARTIES. The Parties expressly acknowledge that
they are independent contractors in the performance of this Agreement, and each
Party is solely liable for all labor and related expenses it incurs in
connection with this Agreement. Neither Party will have, nor will it represent
that it has, any power, right or authority to bind the other Party, or to assume
or create any obligation or responsibility, express or implied, on behalf of the
other Party.

        9. PROPRIETARY INFORMATION.

        9.1 The Parties acknowledge that in the course of performing their
duties under this Agreement, each may obtain confidential and proprietary
information of the other ("PROPRIETARY INFORMATION"). Such Proprietary
Information may include, but is not limited to, trade secrets, know-how,
inventions, techniques, processes, programs, schematics, software source code,
data, customer lists, financial information, and sales and marketing plans.
Nothing will be considered Proprietary Information unless either (i) it is or
was disclosed in tangible form and is conspicuously marked "Confidential,"
"Proprietary" or the like or (ii) it is or was disclosed in non-tangible form
and orally identified as confidential at the time of disclosure and is
summarized in tangible form conspicuously marked "Confidential," "Proprietary"
or the like within thirty (30) days of the original disclosure. Notwithstanding
the foregoing, source code of Software supplied to CUSTOMER shall be deemed
SELLER's Proprietary Information. Each Party shall at all times keep in trust
and confidence all Proprietary Information of the other Party and, during the
term of this Agreement and for three (3) years after its termination, shall not
use such Proprietary Information other than in the course of performing its
duties under this Agreement nor shall it disclose any such Proprietary
Information to any third party without the written consent of the other. Upon
termination or expiration of this Agreement or upon the request of the
disclosing Party, each Party shall promptly return all manifestations of the
other's Proprietary Information in its possession.

        9.2 Neither Party shall have an obligation to maintain the
confidentiality of information for which it can demonstrate to the reasonable
satisfaction of the disclosing Party that (a) it received rightfully from
another party without restrictions on disclosure prior to its receipt from the
disclosing Party; (b) the disclosing Party has disclosed to an unaffiliated
third party without any obligation to maintain such information in confidence;
or (c) is independently developed by the obligated Party.

        9.3 Further, the receiving Party may disclose Proprietary Information as
required by final, unappealable governmental or judicial order, provided such
Party gives the disclosing Party prompt written notice prior to such disclosure,
and complies with any protective order (or equivalent) imposed on such
disclosure, and provides the disclosing Party the option of either seeking a
protective order or having its Proprietary Information be subject to the same
protective orders as may apply to the disclosing Party's own information. Except
as otherwise provided herein, neither Party shall disclose, disseminate or
distribute any of the other Party's Proprietary Information to any third party
without the other Party's prior written permission.

        9.4 All Proprietary Information, unless otherwise specified in writing,
shall remain the property of the disclosing Party, shall be used by the
receiving Party only for the purpose intended, and such Proprietary Information,
including all copies thereof, shall be returned to the

                                                                              7.
<PAGE>   9

disclosing Party or destroyed upon the earliest to occur of (a) the written
request of the disclosing Party; or (b) the date of termination or expiration of
this Agreement. The receiving Party shall promptly provide a written
certification the disclosing Party that all Proprietary Information has been
returned or destroyed.

        9.5 Each Party agrees that, without the other Party's written consent,
it will not use the name, service marks or trademarks of the other Party or of
any of its affiliates in any advertising, publicity releases or sales
presentations. Neither Party shall take any actions which will in any manner
compromise the other Party's registered trademarks and/or service marks.

        9.6 The Parties agree that a breach of the terms of this Section 9 would
result in irreparable injury to the disclosing Party for which a remedy in
damages would be inadequate and that the disclosing Party shall be entitled to
seek injunctive relief to prevent the breach or threatened breach, in addition
to remedies otherwise available at law or in equity.

        10. TERM AND TERMINATION.

        10.1 Term. This Agreement shall commence on the Effective Date and shall
remain in force for a period of three (3) years from the date of the first
shipment unless earlier terminated as provided in this Section 10. Thereafter,
this Agreement shall automatically renew for successive one (1) year terms
unless a Party provides written notice to the other Party no later than sixty
(60) days prior to the expiration of the then current term of such Party's
intent not to renew. Notwithstanding anything to contrary contained in this
Agreement, the license granted in Section 3.1 shall survive the expiration or
any termination of this Agreement for reasons other than for breach by the
CUSTOMER of Section 3.2 or intentional violation of Section 9.

        10.2 Termination for Cause. This Agreement may be terminated by either
Party for cause immediately upon receipt of written notice upon the occurrence
of any of the following events: (i) if the other Party ceases to do business, or
otherwise terminates its business operations; provided, however, that the
acquisition of all or substantially all of a Party's stock, assets or business
shall not be grounds for termination of this Agreement; or (ii) if the other
Party breaches any material provision of this Agreement and fails to cure such
breach within thirty (30) days of receipt of written notice describing the
breach, provided, however, that a breach of any of the obligations set forth in
Section 3.2 or an intentional violation of Section 9 shall be grounds for
immediate termination of this Agreement by the non-breaching Party; or (iii) if
the other Party becomes insolvent or seeks protection under any bankruptcy,
receivership, trust deed, creditors arrangement, composition or comparable
proceeding, or if any such proceeding is instituted against the other (and not
dismissed within ninety (90) days).

        10.3 Effect of Termination. Upon any termination or expiration of this
Agreement, all pending purchase orders, including purchase orders for release of
Products under a blanket purchase order shall be canceled as of the effective
date of termination or expiration, all sums payable to SELLER shall be due and
payable on the effective date of termination or expiration and all licenses
granted to CUSTOMER under this Agreement shall immediately terminate and
CUSTOMER shall discontinue all distribution of the Products, provided, however,
that, except in the event of a breach by CUSTOMER of Section 3.2 or intentional
violation of Section 9, CUSTOMER shall be entitled to continue to use the
Products pursuant to Section 3.1.

                                                                              8.
<PAGE>   10

        10.4 If the Software or Products, or parts thereof, do not meet the
applicable specifications in any materially adverse respect at any time during
the duration of the license granted for such Software or Products, then SELLER
shall develop an action plan to cure the deficiency within seventy (70) days of
the discovery of the deficiency and deliver such action plan to CUSTOMER within
ten (10) days of SELLER's discovery, or the receipt of notice from CUSTOMER, of
the deficiency. Notwithstanding anything to the contrary contained herein, if
SELLER does not diligently pursue the action plan or the deficiency is not
corrected to the reasonable satisfaction of CUSTOMER within such seventy (70)
day period, then CUSTOMER may, as its sole remedy, terminate this Agreement
without any further liability to SELLER. Nothing contained herein shall obligate
the CUSTOMER to pay for any Products that do not conform to any purchase order
or release or any Software that does not meet the applicable specifications in
any materially adverse respect.

        10.5 In addition to the right of CUSTOMER to terminate this Agreement as
set forth in this Section 10, the Parties shall have the following rights: If at
any time competent public authority shall revoke or suspend CUSTOMER's Federal
Communications Commission (FCC) permit to construct or operate its network, or
if CUSTOMER without fault on its part shall be denied access reasonably
requested to the incumbent local exchange carrier's ("ILEC") central office due
to the Product not meeting the ILEC's standards, CUSTOMER may issue a written
notice to SELLER to "STOP WORK". In such event all work in progress shall be
halted and any executory items on the schedules in the Attachments hereto shall
be automatically canceled. At such time as the impediment is removed, the
Parties shall in good faith negotiate new schedules considering commitments
SELLER has made in the interim, and SELLER shall be entitled to an equitable
adjustment in the price to be paid under this Agreement for any increased costs
to SELLER associated with the Stop Work notice. If such impediment is not
removed within six (6) months, then CUSTOMER may issue notice to SELLER of
termination of this Agreement, together with any documentation evidencing the
circumstances, and be released from any remaining minimum commitment hereunder.
The CUSTOMER hereby represents and warrants to the SELLER as of the date of this
Agreement that, to the best of its knowledge, no circumstances exist that would
permit CUSTOMER to exercise its rights under this Section 10.5.

        11. PUBLICITY. The Parties shall announce this Agreement and the
establishment of the relationship between CUSTOMER and SELLER under this
Agreement pursuant to a joint press release to be mutually agreed upon. The
Parties agree to submit to each other for approval all other press releases
relating to this Agreement and to not publish any press release without prior
approval of the other Party, which approval shall not be unreasonably withheld
or delayed.

        12. ASSIGNMENT. This Agreement shall be binding on successors and
assigns, provided, however, this Agreement may not be assigned or transferred by
one Party without the prior written consent of the other Party, which consent
shall not be unreasonably withheld or delayed. Notwithstanding the foregoing
sentence, an assignment by operation of law to a company under common ownership
and/or control with the assigning Party, or to an acquirer of all or
substantially all of the assigning Party's stock, assets or business to which
this Agreement pertains, shall not require the consent of the other Party, but
rather, in such cases, the assigning Party shall give written notification of
such assignment to the other Party. Any purported assignment in violation of
this Section 12 shall be null and void.

                                                                              9.
<PAGE>   11

        13. MISCELLANEOUS.

        13.1 No Waiver. A waiver by either Party of any provision of this
Agreement or breach, in any one instance, shall not be construed as a waiver of
any other provision or subsequent breach thereof.

        13.2 Notices. All notices or communications of any kind made or required
to be given pursuant to this Agreement shall be in writing and delivered by
facsimile, if to SELLER, to Mr. Suresh Nihalani, Accelerated Networks, Inc.,
fax: (805) 553-9690, tel: (805) 553-9860, and if to CUSTOMER, to Mr. Frederic
Kunzi, CTC Communications Corp., fax: (781) 890-1613, tel: (781) 466-1391, or by
hand delivery or by nationally recognized overnight mail service, or sent by
first class mail, postage prepaid to the address for such Party specified in
this first paragraph of this Agreement or such other address or number as such
Party shall provide notice of in accordance with this Section 13.2.

        13.3 Governing Law. The validity, interpretation and effect of this
Agreement shall be governed by the law of the State of California, without
regard to conflicts of law provisions thereof.

        13.4 Severability. If any provision of this Agreement is held by a court
of competent jurisdiction to be illegal, invalid or unenforceable, that
provision shall be limited or eliminated to the minimum extent necessary so that
this Agreement shall otherwise remain in full force and effect and enforceable.

        13.5 Force Majeure. A Party shall not be liable for non-performance or
delay in performance (other than of confidentiality obligations) caused by any
event reasonably beyond the control of such Party including, but not limited to
wars, hostilities, revolutions, riots, civil commotion, national emergency,
strikes, lockouts or other labor disputes or shortages or inability to obtain
material or equipment, unavailability of supplies, compliance with laws or
regulation (including, without limitation, those related to infringement),
epidemics, fire, flood, earthquake, force of nature, explosion, embargo, or any
Act of God, or any law, proclamation, regulation, ordinance or other act or
order of any court, government or governmental agency.

        13.6 Entire Agreement; Amendment. This Agreement, including all
Attachments to this Agreement, constitutes the entire agreement between the
Parties relating to the subject matter hereof and all prior or simultaneous
proposals, negotiations, representations, conversations, discussions and
agreements, whether written or oral, among the Parties and all past dealing or
industry custom. This Agreement may not be amended except by a writing signed by
the Parties, or by a purchase order as described in Section 1.1.

        13.7 Counterparts. This Agreement may be executed in two or more
counterparts, ach of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                                                             10.
<PAGE>   12

        IN WITNESS WHEREOF, the Parties hereto have executed this Product
Procurement Agreement (PPA) for Strategic Account effective as of the day and
year first above written.

"SELLER":                                    "CUSTOMER":

ACCELERATED NETWORKS, INC.                   CTC COMMUNICATIONS CORP.

By:     /s/ Suresh Nihalani                  By:   /s/ Frederic Kunzi
        ----------------------------               -------------------------
        Suresh Nihalani                      Name:    Frederic Kunzi
        President & CEO                      Title:   CTO

                                                                             11.

<PAGE>   13
                                  ATTACHMENT A
          TO PRODUCT PROCUREMENT AGREEMENT (PPA) FOR STRATEGIC ACCOUNT

                                    PRODUCTS
            BRIEF SPECIFICATIONS AND FEATURES OF RELEASE 1.x AND 2.0

MSAP

CHASSIS
I.       AN-3204 MSAP 4-slot (field/MDU)
II.      AN-3220 MSAP 20-slot (CO)

MODULES
I.       System Combo Module w/dual uplink slots
II.      DS-3 and OC-3 ATM uplink daughtercards
III.     12-port SDSL or T1 line card
IV.      8-port T1 Voice Server Module supports
V.       ESF framing, robbed bit signaling

IAD

AN-30
I.       Business/branch CPE
II.      One 10/100 Ethernet user port
III.     Two serial user ports (V.35/V.11)
IV.      12-port analog voice modules (FXS)
V.       1 WAN port:  SDSL or T1

SOFTWARE FEATURES

DATA
I.       ATM RFC 1483 Ethernet bridging
II.      ATM RFC 1483 IP routing
III.     DSS - Dynamic Service Selection
IV.               NAT
V.                DHCP client and server
VI.               Integral Web server
VII.              Radius client
VIII.    RIP, RIP II
IX.      ATM QoS and traffic prioritization
X.       ATM classes of service UBR, rtVBR, nrtVBR, CBR
XI.      Frame Relay to ATM FRF.5 network and FRF.8 service interworking
XII.     Any-to-any port switching on MSAP
XIII.    ISP subscriber aggregation on IAD

VOICE
I.       Toll quality over ATM
II.               CES per ATM Forum VTOA-0078
III.              G.711 PCM voice
IV.               AAL1 adaptation over CBR
V.       Dynamic support for Voice, facsimile and modem
VI.      Multiple voice channels per PVC
VII.     Integral G.168 echo cancellation

Network Management Software will follow Release 2.0
<PAGE>   14
Above and beyond its generally available Products, and in return for the volume
purchases by CUSTOMER as stated in Attachment B to the Product Procurement
Agreement (PPA) For Strategic Account (the "AGREEMENT"), SELLER commits to
provide the following features in its future releases of Products to CUSTOMER
(Capitalized terms utilized and not otherwise defined herein shall have the
respective meanings given to those terms in the Agreement):

May 1999:

         1.       IAD and MSAP T1 ATM Interworking function

         2.       1 T1 voice + 1 T1 drop and insert on AN-30

June 1999:

         1.       ADPCM over AAL2 (as part of voice compression, silence
                  detection and suppression are available in 2H99)

December 1999:

         1.       AN-31 with up to 24 Analog ports, voice compression, 2 serial
                  data, 1 WAN

         2.       AN-32 with up to 2 T1 voice, voice compression 2 serial data,
                  Ethernet, 2 WAN and IMA

         3.       AN-32 with up to 24 analog voice, voice compression, 2 serial
                  data, Ethernet, 2 WAN and IMA

         4.       AN-33 with up to 3 T1 voice, voice compression, 3 serial data,
                  Ethernet, 3 WAN and IMA

         5.       AN-33 with up to 24 analog voice, voice compression, 3 serial
                  data, Ethernet, 3 WAN and IMA

         6.       16 analog voice port option with single 40 pin connector on
                  AN-30

         7.       [4 x DS3 card for AN-3204]

         8.       IAD web management

         9.       NMS for Solaris

         10.      VTOA 85

         11.      G.729a, G.729b

January-June 2000:

         1.       SS7 ISUP

         2.       VoIP gateway

         3.       Class-4 and 5 interfacing capability

July-December 2000:

         1.       MPLS

         2.       Directory enabled provisioning
<PAGE>   15
                                  ATTACHMENT B
          TO PRODUCT PROCUREMENT AGREEMENT (PPA) FOR STRATEGIC ACCOUNT

                       PRODUCT PRICES AND DISCOUNT LEVELS

[Excel Quote sheet identifying complete Roll-Out and Standard Price List are
attached]. Detailed descriptions are provided for information purposes.
Installation, Configuration, Maintenance and any other support related prices
for the Roll-Out are to be negotiated separately.

In the Product Procurement Agreement (PPA) for Strategic Account (the
"AGREEMENT") to which this attachment forms a part, CUSTOMER commits to an
initial purchase volume of [***] applied toward a minimum purchase commitment
(the "MINIMUM PURCHASE COMMITMENT") of SELLER's Products within the first [***]
of the Agreement. To be included in the Products are units of the [***].
CUSTOMER agrees to receive delivery of at least [***] Products [***] and [***]
as part of the Minimum Purchase Commitment as per the following delivery
schedule. For receipt of Minimum Purchase Commitment, CUSTOMER agrees to pay any
balance due beyond the initial purchase order in accordance with payment terms
specified herein. (Capitalized terms utilized and not otherwise defined herein
shall have the respective meanings given to those terms in the Agreement):

INITIAL FORECAST FROM CUSTOMER

[***]

CUSTOMER's Discounts* off SELLER's published list prices for all Products,
including, but not limited to the Specially Developed Products and the Software,
are as follows:

From [***] in net purchases                                 [***] Discount
Over [***] in net purchases                                 [***] Discount
Over [***] in net purchases                                 [***] Discount

*Such Discounts shall be based upon cumulative net purchases beginning on April
21, 1999.

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

*** Confidential treatment has been requested for certain redacted provisions of
this agreement. The redacted provisions are identified by three asterisks
enclosed by brackets and underlined. The confidential portion has been filed
separately with the Securities and Exchange Commission.
<PAGE>   16
                                   ACCELERATED
                                    NETWORKS

                              WORLDWIDE PRICE LIST

                                 MARCH 1ST, 1999

         COPYRIGHT ACCELERATED NETWORKS INC, 1998. ALL RIGHTS RESERVED.

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 1 of 18
<PAGE>   17
                                TABLE OF CONTENTS

IAD PRODUCTS (CPE)................................................       3 TO 4
       BASE UNIT
       IAD INTERFACE MODULES
       IAD SOFTWARE

MSAP PRODUCTS (COE)...............................................       5 TO 8
       BASE UNITS & LOGIC
       INTERFACE MODULES
       MSAP SYSTEM SOFTWARE

CABLING...........................................................      9 TO 10

NETWORK MANAGEMENT PRODUCTS.......................................         11

LITERATURE........................................................         12

SUPPORT AND SERVICES..............................................      13 TO 14
       MAINTENANCE PROGRAM+C343
       EXTENDED WARRANTY PROGRAM

FIELD REPLACEMENT UNITS (SPARES)..................................         15

ORDERING INFORMATION..............................................         16

SERVICE AND REPAIRS POLICY........................................         17
       WARRANTY INFORMATION
       OUT OF WARRANTY INFORMATION

GLOSSARY..........................................................         18
       GLOSSARY OF TERMS
       CONTACT INFORMATION

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 2 of 18
<PAGE>   18
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

IAD PRODUCTS (CPE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
BASE UNITS
----------------------------------------------------------------------------------------------------------------------
AN-20S                  Integrated Access Device Base Unit.  Includes 1-port           $795        A      Standard
                        Ethernet 10BT, 1-port ATM WAN over SDSL at 1.544Mbps.
                        Please specify the version of software to be installed.

AN-20S-E2               Integrated Access Device Base Unit.  Includes 2-ports          $895        A      Standard
                        Ethernet 10BT.  1-port ATM WAN over SDSL at 1.544Mbps.
                        Please specify the version of software to be installed.

AN-20T                  Integrated Access Device Base Unit.  Includes 1-port           $895        A      Standard
                        Ethernet 10BT.  1-port ATM WAN over unchannelized T1
                        (integral CSU/DSU).  Please specify the version of
                        software to be installed.

AN-20T-E2               Integrated Access Device Base Unit.  Includes 2-ports          $995        A      Standard
                        Ethernet 10BT.  1-port ATM WAN over unchannelized T1
                        (integral CSU/DSU).  Please specify the version of
                        software to be installed.

AN-30S                  Integrated Access Device Base Unit.  Includes 1-port         $3,995        A      Standard
                        Ethernet 10/100TX, 2-ports Serial V.35/V.11, 1-port
                        ATM WAN over SDSL at 1.544Mbps. Voice expansion option.
                        Please specify the version of software to be installed.

AN-30T                  Integrated Access Device Base Unit.  Includes 1-port         $4,095        A      Standard
                        Ethernet 10/100TX, 2-ports Serial V.35/V.11, 1-port
                        ATM WAN over unchannelized T1 (integral CSU/DSU). Voice
                        expansion option. Please specify the version of software
                        to be installed.
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 3 of 18
<PAGE>   19
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

IAD PRODUCTS (CPE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
IAD INTERFACE MODULES
----------------------------------------------------------------------------------------------------------------------
AN-30VM-A12S            Analog Voice Module for AN-30.  12 analog voice              $2,995        A      Standard
                        channels with an FXS interface.  Supports G.711 PCM
                        voice and G.168 echo cancellation.

AN-30VM-A12SC           Analog Voice Module for AN-30.  12 analog voice              $3,995        A      Contact
                        channels with an FXS interface.  Supports G.729A,
                        G.726 compressed and G.711 uncompressed voice
                        algorithms.  Includes G.168 echo cancellation.

AN-30VM-D24             Digital Voice Module for AN-30.  24-DSO digital voice        $2,995        A      Contact
                        module with 2-ports T1 for drop & insert
                        functionality.  Supports G.711 PCM voice and G.168
                        echo cancellation.

AN-30VM-D24C            Digital Voice Module for AN-30.  24-DSO digital voice        $4,395        A      Contact
                        module with 2-ports T1 for drop & insert
                        functionality.  Supports G.729A, G.726 compressed and
                        G.711 uncompressed voice algorithms.  Includes G.168
                        echo cancellation.

IAD SOFTWARE
----------------------------------------------------------------------------------------------------------------------
AN-20-SW-B1.2           Basic System Software version 1.2 for the AN-20 IAD.     No charge         A      Standard
                        Includes RFC 1483 bridged mode.                          with IAD

AN-20-SW-B2.0           Basic System Software version 2.0 for the AN-20 IAD.     No charge         A      Standard
                        Includes RFC 1483 bridged mode.                          with IAD

AN-20-SW-R1.2           Routing Software version 1.2 for the AN-20 IAD.              $100          A      Standard
                        Supports RIP 1 & RIP 2 routing.

AN-20-SW-R2.0           Routing Software version 2.0 for the AN-20 IAD.              $100          A      Standard
                        Supports RIP 1 & RIP 2 routing.

AN-20-SW-DSSv1          Dynamic Service Selection Software for the AN-20 IAD.        $100          A      Standard

AN-30-SW-B2.0           Basic System Software version 2.0 for the AN-30 IAD.     No charge         A      Standard
                        Includes routing, FRF .5 and FRF.8 software.             with IAD

AN-30-SW-DSSv1          Dynamic Service Selection Software for the AN-30 IAD.        $300          A      Standard
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 4 of 18
<PAGE>   20
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

MSAP PRODUCTS (COE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                          <C>          <C>     <C>
BASE UNITS & LOGIC
----------------------------------------------------------------------------------------------------------------------
AN-3204                 AN-3200 4-slot 19" Chassis.  90-240 VAC power.               $3,995        A      Standard

AN-3220                 AN-3200 20-slot 23" Chassis.  - 48 VDC power.                $7,995        A      Standard

DS3-D                   Single port DS-3 (45 Mbps) ATM WAN uplink                    $1,095        A      Standard
                        daughtercard.  Factory installed only.

OC3-MM-D                Single port OC-3 MM (155 Mbps) ATM WAN uplink                $1,995        A      Standard
                        daughtercard.  Factory installed only.

SYSMOD                  System Combo Card includes system processor, 1-port          $4,895        A      Standard
                        Ethernet 10/100TX, 1 console port, and 2-slots for
                        uplink daughtercards.  Requires Aggregrator System
                        software or Multi-Service Gateway System software.
                        See section on the MSAP System Software.  Specify type
                        of uplink card to be installed.  Uplink card is sold
                        separately.

SYSM0D1-DS3             System Combo Card includes system processor, 1-port          $5,990        A      Standard
                        Ethernet 10/100TX, 1 console port.  1 PREINSTALLED
                        DS-3 (45Mbps) ATM WAN UPLINK.  Requires Aggregator
                        System software or Multi-Service Gateway System
                        software.  See section on the MSAP System Software.
                        Uplink daughtercards must be factory installed.

SYSM0D1-OC3MM           System Combo Card includes system processor, 1-port          $6,890        A      Standard
                        Ethernet 10/100TX, 1 console port.  1 PREINSTALLED
                        OC-3 MM (155Mbps) ATM WAN UPLINK.  Requires
                        Aggregrator System software or Multi-Service Gateway
                        System software.  See section on the MSAP System
                        Software.  Uplink daughtercards must be factory
                        installed.

SYSMOD-CM               System Combo Card includes system processor, 1-port          $7,985        A      Standard
                        Ethernet 10/100TX, 1 console port, 1 PREINSTALLED OC-3
                        MM (155Mbps), AND 1 PREINSTALLED DS-3 (45Mbps) ATM WAN
                        UPLINK DAUGHTERCARDS.  Requires Aggregrator System
                        software or Multi-Service Gateway System software.
                        See section on the MSAP System Software.
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 5 of 18
<PAGE>   21
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

MSAP PRODUCTS (COE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                       <C>            <C>      <C>
BASE UNITS & LOGIC
----------------------------------------------------------------------------------------------------------------------
SYSMOD2-DS3             System Combo Card includes system processor, 1-port          $7,085        A      Standard
                        Ethernet 10/100TX, 1 console port.  2 PREINSTALLED
                        DS-3 (45Mbps) ATM WAN UPLINK DAUGHTERCARDS.  Requires
                        Aggregrator System software or Multi-Service Gateway
                        System software.  See section on the MSAP System
                        Software.

SYSMOD2-OC3MM           System Combo Card includes system processor, 1-port          $8,885        A      Standard
                        Ethernet 10/100TX, 1 console port.  2 PREINSTALLED
                        OC-3 MM (155Mbps) ATM WAN UPLINK DAUGHTERCARDS.
                        Requires Aggregrator System software or Multi-Service
                        Gateway System software.  See section on the MSAP
                        System Software.
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 6 of 18
<PAGE>   22
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

MSAP PRODUCTS (COE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                       <C>            <C>      <C>
INTERFACE MODULES
----------------------------------------------------------------------------------------------------------------------
LC12-SDSL               12-channel line card supports ATM over SDSL.  12             $8,395        A      Standard
                        integral SDSL modem on daughtercards.

LC12-T1                 12-channel line card supports ATM over unchannelized         $8,995        A      Standard
                        T1.  12 integral T1 modems with CSU/DSU on
                        daughtercards.

VSIC-8TP                Octal T1 and Voice Server Card with no compression.         $13,995        A      Standard
                        8 DS-1 channelized T1 digital voice interfaces for
                        connection to PBX or Class 5 switches.  192 voice
                        channels of G.711 PCM voice and G.168 echo
                        cancellation.  Supports structured CES service via CBR
                        voice over AAL1.

VSIC-8TC                Octal T1 and Voice Server Card with voice                      Call        A      Contact
                        compression.  8 DS-1 channelized T1 digital voice
                        interfaces for connection to PBX or Class 5 switches. 96
                        voice channels of G.729A, G.726, G.711, and G.168 echo
                        cancellation. Supports structured CES service via CBR
                        voice over AAL1 and rtVBR voice over AAL2.
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 7 of 18
<PAGE>   23
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

MSAP PRODUCTS (COE)

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT        AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
MSAP SYSTEM SOFTWARE
----------------------------------------------------------------------------------------------------------------------
MSAP-SW-A1.2            Aggregator System software version 1.2                       $1,995        A      Standard

MSAP-SW-A2.0            Aggregator System software version 2.0                       $1,995        A      Standard

MSAP-SW-GW2.0           Multi-Service Gateway System software version 2.0.           $4,995        A      Standard
                        Required with any purchase of voice module.

GR303-SW-2.1            GR-303 System software.  Requires additional GR-303          $3,000        A      Contact
                        software per voice server card.

GR303-VSC-SW-2.1        GR-303 Voice Server Card software.  Requires GR-303          $1,000        A      Contact
                        System software.  This option must be purchased for
                        each voice server card that needs support for GR-303
</TABLE>

CONFIDENTIAL
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<PAGE>   24
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

CABLING

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT      AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
CBL-IAD-10              Console cable, DB9 (Male) to DB9 (Female), 10ft                Call        C      Contact

CBL-MSAP-25             Console cable, DB9 (Male) to DB9 (Female), 25ft                Call        C      Contact

CETH-IAD-10             10/100 Ethernet, UTP, CAT 5, RJ45, molded, 10ft                Call        C      Contact

CETH-IAD-20             10/100 Ethernet, UTP, CAT 5, RJ45, molded, 20ft                Call        C      Contact

CETH-MSAP-25            10/100 Ethernet, UTP, CAT 5, RJ45, molded, 25ft                Call        C      Contact

CETH-MSAP-50            10/100 Ethernet, UTP, CAT 5, RJ45, molded, 50ft                Call        C      Contact

CETH-MSAP-100           10/100 Ethernet, UTP, CAT 5, RJ45, molded, 100ft               Call        C      Contact

CDS3-MSAP-25            DS-3, dual coaxial, BNC, RG-59/4, NEC CL2, UL Style            Call        C      Contact
                        1354, 25ft

CDS3-MSAP-50            DS-3, dual coaxial, BNC, RG-59/4, NEC CL2, UL Style            Call        C      Contact
                        1354, 50ft

CDS3-MSAP-100           DS-3, dual coaxial, BNC, RG-59/4, NEC CL2, UL Style            Call        C      Contact
                        1354, 100ft

COC3-MSAP-3M            OC-3 duplex, SC to SC connector, MM (multimode), 3m            Call        C      Contact

COC3-MSAP-5M            OC-3 duplex, SC to SC connector, MM (multimode), 5m            Call        C      Contact

COC3-MSAP-8M            OC-3 duplex, SC to SC connector, MM (multimode), 8m            Call        C      Contact

CT1-IAD-10              T1 uplink cable, UTP, RJ48, 10ft                               Call        C      Contact

CT1-IAD-20              T1 uplink cable, UTP, RJ48, 20ft                               Call        C      Contact

CSDSL-IAD-10            SDSL uplink cable, UTP, CAT 5, RJ48, molded, 10ft              Call        C      Contact

CSDSL-IAD-20            SDSL uplink cable, UTP, CAT 5, RJ48, molded, 20ft              Call        C      Contact
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                    Page 9 of 18
<PAGE>   25
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

CABLING

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT      AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
C1LCVSC-15              LC/VSC Metallic 50pin telco conn one end, shield w             Call        C      Contact
                        drain, 15ft.

C1LCVSC-25              LC/VSC Metallic 50pin telco conn one end, shield w             Call        C      Contact
                        drain, 25ft.

C1LCVSC-50              LC/VSC Metallic 50pin telco conn one end, shield w             Call        C      Contact
                        drain, 50ft.

C2LCVSC-15              LC/VSC Metallic 50pin telco conn both ends, shield w           Call        C      Contact
                        drain, 15ft.

C2LCVSC-25              LC/VSC Metallic 50pin telco conn both ends, shield w           Call        C      Contact
                        drain, 25ft.

C2LCVSC-50              LC/VSC Metallic 50pin telco conn both ends, shield w           Call        C      Contact
                        drain, 50ft.

CDCEDTE-10              Serial cable, V.35 DCE (MD26 Male) to DTE (Winchester          Call        C      Contact
                        V.35 Female), 10ft

CDCEDCE-10              Serial cable, V.35 DCE (MD26 Male) to DCE (Winchester          Call        C      Contact
                        V.35 Male), 10ft

CDCEDTE-20              Serial cable, V.35 DCE (MD26 Male) to DTE (Winchester          Call        C      Contact
                        V.35 Female), 20ft

CDCEDCE-20              Serial cable, V.35 DCE (MD26 Male) to DCE (Winchester          Call        C      Contact
                        V.35 Male), 20ft
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 10 of 18
<PAGE>   26
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

NETWORK MANAGEMENT PRODUCTS

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT      AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
SOFTWARE
----------------------------------------------------------------------------------------------------------------------
AP-NTOV10-2.0           Network Management Software for HP OpenView on Windows       $4,995        A      Contact
                        NT platform.  Supports up to 10 AN-3200 and attached
                        CPE devices.  Integrated functionality includes Local
                        Domain Manager with SNMP and CORBA northbound
                        interfaces.  (Windows NT, HP OpenView and hardware not
                        included)

AP-NTOV50-2.0           Network Management Software for HP OpenView on Windows      $14,995        A      Contact
                        NT platform.  Supports up to 50 AN-3200 and attached
                        CPE devices.  Integrated functionality includes Local
                        and Multi Domain Manager with SNMP and CORBA
                        northbound interfaces.  (Windows NT, HP OpenView and
                        hardware not included)

AP-NTOV250-2.0          Network Management Software for HP OpenView on Windows      $39,995        A      Contact
                        NT platform.  Supports up to 250 AN-3200 and attached
                        CPE devices.  Integrated functionality includes Local
                        and Multi Domain Manager with SNMP and CORBA
                        northbound interfaces.  (Windows NT, HP OpenView and
                        hardware not included)

AP-UNIX10-2.0           Network Management Software for HP OpenView on Sun             Call        A      Contact
                        Solaris platform.  Supports up to 10 AN-3200 and
                        attached CPE devices.  Integrated functionality
                        includes Local Domain Manager with SNMP and CORBA
                        northbound interfaces.  (Sun Solaris, HP OpenView and
                        hardware not included)

AP-UNIX50-2.0           Network Management Software for HP OpenView on Sun             Call        A      Contact
                        Solaris platform.  Supports up to 50 AN-3200 and
                        attached CPE devices.  Integrated functionality
                        includes Local and Multi Domain Manager with SNMP and
                        CORBA northbound interfaces.  (Sun Solaris, HP
                        OpenView and hardware not included)

AP-UNIX250-2.0          Network Management Software for HP OpenView on Sun             Call        A      Contact
                        Solaris platform.  Supports up to 250 AN-3200 and
                        attached CPE devices.  Integrated functionality
                        includes Local and Multi Domain Manager with SNMP and
                        CORBA northbound interfaces.  (Sun Solaris, HP
                        OpenView and hardware not included)
</TABLE>

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<PAGE>   27
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

LITERATURE

<TABLE>
<CAPTION>
                                                LIST PRICE
      MODEL              DESCRIPTION                US$        CAT      AVAIL
<S>               <C>                           <C>            <C>     <C>
MANUAL AN-20      AN-20 User Manual                  $20        C      Standard

MANUAL AN-30      AN-30 User Manual                  $25        C      Standard

MANUAL-AN3200     AN-3200 Reference Guide           $200        C      Standard
</TABLE>

CONFIDENTIAL
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<PAGE>   28
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

SUPPORT AND SERVICES

<TABLE>
<CAPTION>
                                                                                  LIST PRICE
        MODEL                                 DESCRIPTION                             US$         CAT      AVAIL
<S>                     <C>                                                       <C>             <C>     <C>
MAINTENANCE PROGRAM
----------------------------------------------------------------------------------------------------------------------
14ct GoldenCare         Standard Annual Maintenance.  Includes:                    6% of list      C      Standard
                         - Period software maintenance releases
                         - Extended hours telephone support 8a.m. to 8p.m.
                        PST, Mon-Sat
                         - Access to "TechNet" Web based technical support
                        resources.
                         - Does not include feature upgrades or on-site
                        support.

18ct GoldenCare Plus    Extra Annual Maintenance.  Includes:                       10% of list     C      Standard
                         - Periodic software maintenance releases
                         - Software subscription "feature upgrade" service
                         - Advanced replacement of hardware components
                         - Extended hours telephone support with highest
                        priority call-back status 8a.m. to 8p.m. PST, Mon-Sat.
                         - 24x7 premium pager-based support
                         - Network dial-in troubleshooting
                         - Access to "TechNet" Web based technical support

24ct PureGoldCare       Premium Annual Maintenance.  Includes:                     17% of list     C      Contact
                         - Periodic software maintenance releases
                         - Software subscription "feature upgrade" service
                         - Advanced replacement of hardware components
                         - On-site technical assistance with a 4-hour response
                        time
                         - Extended hours telephone support with highest
                        priority call-back status 8a.m. to 8p.m. PST, Mon-Sat.
                         - 24x7 premium pager-based support
                         - Network dial-in troubleshooting
                         - Access to "TechNet" Web based technical support
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 13 of 18
<PAGE>   29
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

SUPPORT AND SERVICES

<TABLE>
<CAPTION>
                                                                                       LIST PRICE
        MODEL                                 DESCRIPTION                                  US$         CAT      AVAIL
<S>                          <C>                                                       <C>             <C>     <C>
SERVICES
-------------------------------------------------------------------------------------------------------------------------
InstallationStd-US           Standard Domestic Installation includes:                   10% of list     C      Contact
                              - Installation of company's hardware and software
                              - Basic system configuration
                              - All installation-related travel expenses within
                                the U.S.
                             Standard Installation excludes:
                              - Customer, network, power or telecom wiring
                              - Local loop qualification or line testing
                              - Adjustment/fine tuning of voice levels
                              - Custom configuration
EXTENDED WARRANTY PROGRAM
-------------------------------------------------------------------------------------------------------------------------
ESERV-AG1                    Extended Warranty Service for 1 year.  Includes parts       5% of list     C      Standard
                             and labor for factory repairs only.
ESERV-AG2                    Extended Warranty Service for 3 years.  Includes parts     12% of list     C      Standard
                             and labor for factory repairs only.

OTHER SERVICES
-------------------------------------------------------------------------------------------------------------------------

HT-STG                       Special Request:  Hot Staging                                  Call        C      Standard
                             Product preconfigured, tested and ready for
                             installation.
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 14 of 18
<PAGE>   30
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

FIELD REPLACEMENT UNITS (SPARES)

<TABLE>
<CAPTION>
                                                   LIST PRICE
   MODEL                DESCRIPTION                   US$       CAT     AVAIL
<S>              <C>                               <C>          <C>    <C>
FR-FTU3220       Fan Tray Unit AN-3220               Call        C     Contact

FR-PSVAC3204     90-240 VAC Power Supply AN-3204     Call        C     Contact

FR-BLANKPNL      Blank Panel                         Call        C     Contact

FR-RMK19-3204    Rack Mounting Kit 19", AN-3204      Call        C     Contact

FR-RMK23-3204    Rack Mounting Kit 23", AN-3204      Call        C     Contact

FR-RMK23-3220    Rack Mounting Kit 23", AN-3220      Call        C     Contact
</TABLE>

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 15 of 18
<PAGE>   31
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

ORDERING INFORMATION

         Customers must specify the type and version of the software on their
         purchase order.

         Hardware configuration sheet must be completed for each MSAP order.

         Every MSAP base units must be configured with either an Aggregator
         System or a Multi-Service Gateway System software. See section on MSAP
         System software.

         MSAP System requiring a Voice Module must have Multi-Service Gateway
         System software installed. See section on MSAP System Software.

         Select cable from cabling section. Cable Guide diagram is available on
         our website: http://www.acceleratednetworks.com/

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 16 of 18
<PAGE>   32
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

SERVICE AND REPAIR POLICY

WARRANTY INFORMATION
--------------------------------------------------------------------------------

         All Accelerated Networks' products are covered by a 12-month
         return-to-factory warranty. No-charge advance replacement within 30
         days of product shipment.

         Customer is responsible for inbound freight cost when returning the
         product to factory for troubleshoot, repair, or rework.

         No charge for parts replacement or labor. Factory is responsible for
         outbound freight cost.

OUT OF WARRANTY INFORMATION
--------------------------------------------------------------------------------

         Product without warranty and maintenance contract will be subjected to
         a 35% of the list price for repairs/services.

         Additional 10% of the list price will be added to any expedited service
         with turnaround time of 24 hrs instead of 15 business days.

         WARNING:

         Warranty is void if field upgrades, repairs or replacement are
         attempted by non qualified or unauthorized personnels.

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 17 of 18
<PAGE>   33
ACCELERATED                                                 WORLDWIDE PRICE LIST
NETWORKS

GLOSSARY

<TABLE>
<CAPTION>
                                                                                   LIST PRICE
        MODEL                                 DESCRIPTION                             US$        CAT       AVAIL
<S>                     <C>                                                        <C>           <C>       <C>
GLOSSARY OF TERMS
-------------------------------------------------------------------------------------------------------------------
STANDARD                PRODUCT LEAD TIME IS 60 DAYS ARO.

CONTACT                 CALL FOR PRODUCT INFORMATION.

AN-20                   Accelerator 20 CPE product

AN-30                   Accelerator 30 CPE product

AN-3200                 Accelerator AN-3200 Multi-Service Aggregator / Gateway
                        product

LC                      Line Card

VSIC                    Voice Server and Interface Card
</TABLE>

CONTACT INFORMATION
--------------------------------------------------------------------------------
                        Accelerated Networks, Inc.
                        Attn:  Sales Department
                        301 Science Drive
                        Moorpark, CA 93021
                        (805) 553-9680 Telephone
                        (805) 553-9690 Facsimile
                        Web Site:  www.acceleratednetworks.com
                        Email:  sales@acceleratednetworks.com

                NOTICE:    ALL PRICES ARE FOB FACTORY AND SUBJECT TO CHANGE
                           WITHOUT NOTICE.  CONTACT ACCELERATED NETWORKS
                           DIRECTLY FOR ADDITIONAL INFORMATION.

CONFIDENTIAL
ALL PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.                   Page 18 of 18<PAGE>   1

                                                                   EXHIBIT 10.13

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED
PROVISIONS OF THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE
ASTERISKS ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

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

                       PRODUCT PURCHASE AND SALE AGREEMENT

                                 BY AND BETWEEN

                         FIRSTWORLD COMMUNICATIONS, INC.

                                       AND

                           ACCELERATED NETWORKS, INC.

                                      DATED

                                 AUGUST 1, 1999

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

<PAGE>   2

[ACCELERATED NETWORKS LOGO]

                       PRODUCT PURCHASE AND SALE AGREEMENT

        This Product Purchase and Sale Agreement ("Agreement"), effective as of
August 1, 1999 (the "Effective Date'), is made by and between ACCELERATED
NETWORKS, INC., a California corporation with its principal place of business at
301 Science Drive, Moorpark CA 93021 ("Seller") and FIRSTWORLD COMMUNICATIONS,
INC., a Delaware corporation with its principal place of business at 7100 East
Belleview Avenue, Suite 210, Greenwood Village, Colorado 80211 ("Customer").
Customer and Seller are also referred to collectively as the "Parties". The
Parties agree as follows:

        WHEREAS, Seller desires to supply to Customer and Customer desires to
purchase from Seller the products described herein, pursuant to the terms and
conditions contained herein.

        NOW, THEREFORE, in consideration of the mutual promises herein contained
and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties intending to be lawfully bound agree as
follows:

        1. TERM

        The Agreement shall commence on the Effective Date and shall continue in
force for an initial period of eighteen (18) months unless earlier terminated as
provided for in Section 13 ("Initial Term"). Thereafter this Agreement shall
continue on a month-to-month term unless a party provides written notice to the
other party 60 days of its termination.

        2. SCOPE

        The terms and conditions of this Agreement shall apply to all
transactions occurring during the Term whereby products or Services are provided
by Seller to Customer. Customer as used herein shall mean FirstWorld
Communications, Inc. or any of its wholly owned subsidiaries.

        Customer understands and agrees that all Products, provided by Seller to
Customer pursuant to this Agreement and to the Exhibits listed below shall be
for Customer's internal use in the United Sates only.

       Exhibit A    Products
       Exhibit B    FirstWorld Communications National Price List
       Exhibit C    End-User Software License

                                                                               1
<PAGE>   3

        3. PURCHASE OF PRODUCTS

        3.1 Annual Purchase

        In consideration for Seller's discounts, allowances, credits, and
incentives as set forth in Section 3.2 of this Agreement or any Schedule or
Exhibit ("Attachments") to this Agreement; Customer intends to purchase from
Seller an aggregate of $10 Million ("Purchase Objective") for Products purchased
during the Initial Term of this Agreement.

        3.2 Discounts

        From the Effective Date up to and through February 1, 2001, Customer
shall receive a purchase discount of [***] from the list prices set forth in
Exhibit B of all Products purchased by Customer from Seller. In the event
Customer has not achieved an aggregate purchase of $10 Million in Products on or
before February 1, 2001, Customer shall not be eligible for any future
discounts. Forfeiture of future discounts after February 1, 2001 shall be
Seller's sole and exclusive remedy for Customer's failure to meet its Purchase
Objective. Failure to attain the Purchase Objective shall not be a default or
breach of this Agreement.

        3.3 Pricing

        Prices are exclusive of all taxes, customs duties or similar tariffs and
fees, shipping and insurance charges which Seller may be required to pay or
collect upon the sale or delivery of the Products or upon collection of the
sales price, all of which shall be Customer's responsibility.

        4. ORDERS AND PAYMENT

        4.1 Customer shall submitted purchase orders by fax to the following
address:

                      Accelerated Networks, Inc.
                      301 Science Drive
                      Moorpark, California 93021
                      Attn: Sales Administration
                      Fax: (805) 553-9690

        4.2 Cancellation and Rescheduling

        Customer may cancel delivery of Products pursuant to a purchase order
without charge upon written notice to Seller not less than one hundred and
eighty (180) days prior to the scheduled delivery date. Customer will be
responsible for payment of 75% (seventy-five percent) of the amount of any
portion of a purchase order that is cancelled less than one hundred and eighty
(180) days prior to the scheduled delivery date. Customer may reschedule, or
extend the date of, delivery of Products pursuant to a purchase order without
charge upon written notice

---------------------
        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                               2
<PAGE>   4

to Seller not less than sixty (60) days prior to the scheduled delivery date.
This reschedule of delivery of Products by Seller can only be done one (1) time
per purchase order and the revised delivery date cannot be greater than sixty
(60) days from the originally scheduled date of delivery.

        4.3 Payment

        Payment for Products (including transportation charges and taxes, if
applicable) will be due as follows:

               To Accompany Purchase Order                      [***]

               Upon Delivery                                    [***]

               Within thirty (30) days of Seller's invoice      [***]
               date after delivery

        All payments shall be made in U.S. dollars in the United States.

        5. DELIVERY AND ACCEPTANCE

        5.1 Delivery

        Products are delivered FOB Seller's plant or other place of shipment.
Shipments will be made to the delivery address specified on Customer's purchase
order. In the absence of a specified delivery address, delivery will be made to
Customer's facility in Greenwood Village, Colorado, or any other standard
location designated by Customer. Shipping arrangements will be mutually agreed
upon by the Parties prior to delivery. Seller shall use its commercially
reasonable efforts to fill (by full or partial shipment) Customer's purchase
orders for Products within sixty (60) days of receiving purchase order. If
Seller cannot fill Customer's purchase order, in which said purchase order falls
within the range of quarterly forecasts (as set forth in Section 7 herein)
within 60 days for reasons other than those as described in Section 17.5 herein,
Customer may cancel purchase order without penalty and Seller will apply
cancelled purchase order's value toward Purchase Objective.

        5.2 Inspection and Acceptance of Deliveries

        Customer shall have the right to visually inspect all Products ordered
pursuant to this Agreement for a period of ten (10) days following delivery. If
the delivered Product(s) fails to conform to the applicable purchase order or
release, in whole or in part, Customer may reject the delivery and Customer
shall promptly return the rejected Product(s) to Seller at Seller's risk and
expense. Upon receipt of the rejected Product(s), Seller will promptly ship
replacement Product(s) to Customer.

---------------------
        *** Confidential Treatment has been requested for certain redacted
provisions of this agreement. The redacted provisions are identified by three
asterisks, enclosed by brackets and underlined. The confidential portion has
been filed separately with the Securities and Exchange Commission.

                                                                               3
<PAGE>   5

        5.3 Pre-shipment Review

        If reasonably requested by Customer, a representative of Customer may
participate, to the extent applicable, in Seller's preshipment configuration,
prestaging and inspection of Product at Seller's facility.

        6. SOFTWARE LICENSE

        6.1 License Grant

        Seller grants Customer, subject to the terms and conditions set forth in
this Agreement, a non-exclusive, non-transferable, non-sublicensable license to
(i) use the software comprising any Product (including software contained in
firmware embedded in a Product) ("Software") and (ii) at Customer's option, to
distribute the Software as incorporated and/or embedded within a Product to
Customer's end-user customers in conjunction with Customer's product and service
offerings. All copies of the Software are licensed and not sold. As between the
Parties, Seller retains all title to (except as expressly licensed by Seller),
and rights (including all intellectual property and proprietary rights anywhere
in the world) and interest in the Software. Seller shall use commercially
reasonable efforts to deliver Seller's standard End User Software License
Agreement ("End User License Agreement") included in the Product package
delivered to the end user.

        6.2 License Restrictions

        Customer shall not, nor permit others to, (i) copy, modify or create any
derivative work of the Software or include the Software in any other software,
(ii) delete, alter. or obscure any copyright or other notice or proprietary
legend appearing in the Software or on any documentation, media, master or
package materials for the Software provided by Seller or (iii) reverse assemble,
decompile, reverse engineer or otherwise attempt to derive the source code (or
the underlying ideas, structure, sequence, organization or algorithms) from the
Software (each, a "Misuse"). Customer shall have no liability to Seller or any
other party for an end-user's Misuse of the Software, unless Customer has actual
knowledge of an end-user's Misuse and fails to promptly take corrective action.

        7. MONTHLY MEETINGS AND QUARTERLY FORECASTS

        Seller and Customer shall each designate at least one representative to
serve as a liaison with the other party (each, a "Representative"). The
Representatives shall meet, either in person or by telephone, to discuss in good
faith matters relating to this Agreement including Product delivery schedules,
joint marketing activities, sales training needs, price changes and new Product
features and enhancements, and Purchase Objective levels. Customer shall provide
seller with quarterly product forecasts. Such forecasts will contain, but are
not necessarily limited to, requested products and quantities, projected
shipping dates, and shipping locations. Quarterly forecasts shall commence and
be in effect beginning with Q3, 1999, and shall continue for the term of this
contract. Such meetings shall take place on a monthly basis at a mutually agreed
upon location. Each party shall bear its own costs incurred in attending or
participating in such meetings.

                                                                               4
<PAGE>   6

        8. SELLER'S WARRANTY

        8.1 Product Warranty

        Seller warrants to Customer: (i) For a period of one (1) year from the
date of shipment that the hardware Products will be free from material defects
in materials and workmanship, (ii) for a period of ninety (90) days from the
date of shipment, the Software will perform substantially in accordance with
applicable specifications identified in the user manual of the then current
release and (iii) services performed by Seller hereunder will be performed in a
professional and workmanlike manner and in accordance with current industry
standards. Seller's warranty does not extend to any Product that (a) is modified
or altered, (b) is not maintained to Seller's maintenance recommendations, (c)
is operated in a manner other than that specified by Seller, (d) has its serial
number removed or altered or (e) is treated with abuse, negligence or other
improper treatment (including, without limitation, use outside the recommended
environment).

        8.2 Remedies

        Products delivered to Customer by Seller hereunder which do not comply
with the warranty in Section 8.1 above and are returned to Seller during the
applicable warranty period will be repaired or replaced at Seller's option, at
no cost to Customer. If Seller cannot, or determines that it is not practical
to, repair or replace a returned Product, the price paid by Customer for such
Product will be credited and applied to future orders.

        8.3 Disclaimer

        SELLER MAKES NO WARRANTIES (OTHER THAN AS EXPRESSLY PROVIDED IN SECTION
8.1 ABOVE) WITH RESPECT TO THE PRODUCTS, THE SOFTWARE OR ANY SERVICES AND
DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. FURTHER,
SELLER DOES NOT WARRANT THE USE, OR THE RESULTS OF THE USE, OF THE PRODUCTS OR
THAT ANY SOFTWARE WILL BE ERROR-FREE.

        8.4 Year 2000 Compliance Warranty

        Seller represents and warrants (the "Year 2000 Warranty) that (a) all
calendar date-related processing by the Products of date data or of any system
date will not cause the Products to cease to operate substantially in accordance
with their specifications, (b) all data fields for the date data contained in
the Products are four-digit fields capable of indicating century and millennium,
and (c) that Seller has verified through its testing procedures that no change
in the system date (including the change from the year 1999 to the year 2000)
will cause the Products to cease to operate substantially in accordance with
their specifications. Notwithstanding any provision to the contrary set forth in
this Agreement, Seller makes no representation or warranty with respect to the
Products operating in conjunction with any computer software, computer firmware,
computer hardware, or any combination of the foregoing supplied by third
parties.

                                                                               5
<PAGE>   7

        9. CUSTOMER'S REPRESENTATIONS AND WARRANTIES

        Customer represents, warrants and covenants that: (i) it shall comply
with good business practices and all laws and regulations relevant to this
Agreement or the subject matter hereof, (ii) it shall use the then current names
used by Seller for the Products, provided that all advertisements, promotional
materials, packaging and anything else bearing any trademark of Seller's shall
identify Seller as the trademark owner and shall be subject to Seller's prior
written approval and (iii) it shall comply with all export laws, restrictions,
national security controls and regulations of the United States or other
applicable foreign agency or authority, and not to export or re-export, or allow
the export or re-export of any Product or Proprietary Information of Seller or
any direct product thereof in violation of any such restrictions, laws or
regulations, or without all required licenses and proper authorizations, any
Group D:I or E:2 country (or national of such country) specified in the then
current U.S. Export Administration Regulations (or any successor supplement or
regulations).

        10. LIMITATION OF LIABILITY

        NEITHER PARTY WELL BE LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY FOR (I) ANY AMOUNTS IN EXCESS IN THE AGGREGATE OF THE AMOUNTS
PAID TO IT (IN THE CASE OF SELLER) OR (IN THE CASE OF CUSTOMER) PAID OR OWED BY
IT HEREUNDER DURING THE TWELVE (12) MONTH PERIOD PRIOR TO DATE THE CAUSE OF
ACTION AROSE OR (II) ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR
LOST DATA OR (III) COST OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR
SERVICES. THE LIMITATIONS OF THIS SECTION 10 SHALL NOT APPLY TO ANY BREACH OF
SECTION 6.2 OR 13.

        11. INDEMNIFICATION

        Seller hereby agrees to defend, indemnify and hold harmless Customer
from and against any third party claims, action, demands, costs or expenses
arising from (i) infringement by the Products as and in the form delivered to
Customer of any United States patent, trademark, copyright or other intellectual
property right of any third party or (ii) the Products' failure to perform in
accordance with the Product Warranty set forth in Section 8.1, provided that
Customer (a) promptly notifies Seller in writing of any such claim, action or
demand, (b) permits Seller to have sole control and authority in the
investigation, defense and settlement of such claim, action or demand and (c)
provides Seller with reasonable assistance and cooperation in connection with
the investigation, defense and settlement thereof and Seller agrees to reimburse
Customer for out-of-pocket expenses incurred in providing such cooperation and
assistance. Seller shall have no obligation with respect to any settlement that
it does not approve in writing. Customer shall permit Seller to replace or
modify any affected Product so to avoid infringing, so long as the replacement
or modification has substantially the equivalent functionality as set forth in
the design specifications, or to procure the right for Customer to continue use
of such Products. If neither of such alternatives is reasonably practicable, the
infringing Products shall be returned to Seller and Seller's sole liability
hereunder, in addition to Seller's obligations to defend, indemnify and hold
harmless set forth in this Section 11, shall be to refund amounts paid

                                                                               6
<PAGE>   8

therefor by Customer. Seller shall have no obligation hereunder for or with
respect to claims, actions, or demands alleging infringement that arise by (i)
reason of combination of noninfringing, Product with any other product, system
or process not supplied by Seller; (ii) Products modified after delivery to
Customer without Seller's prior written consent; (iii) Products not supplied by
Seller; and (iv) Customer's continued use of infringing Products after being
notified of the alleged infringement and after being provided with modifications
that would have avoided the alleged infringement. The foregoing states Seller's
entire liability with respect to infringement of any intellectual property
rights by any Product.

        12. RELATIONSHIP OF PARTIES

        Customer expressly acknowledges that it is an independent contractor in
the performance of this Agreement, and is solely liable for all labor and
related expenses in connection with this Agreement. Customer will not have, and
will not represent that it has, any power, right or authority to bind Seller, or
to assume or create any obligation or responsibility, express or implied, on
behalf of Seller.

        13. PROPRIETARY INFORMATION

        The Parties acknowledge that in the course of performing their duties
under this Agreement, each may obtain confidential and proprietary information
of the other ("Proprietary Information"). Such Proprietary Information may
include, but is not limited to, trade secrets, know-how, inventions, techniques,
processes, programs, schematics, software source code, data, customer lists,
financial information, and sales and marketing plans. Each party shall at all
times keep in trust and confidence all Proprietary Information of the other
party and, during the term of this Agreement and for five (5) years after its
termination, shall not use such Proprietary Information other than in the course
of performing its duties under this Agreement nor shall it disclose any such
Proprietary Information to any third party without the written consent of the
other. Upon termination or expiration of this Agreement or upon the request of
the disclosing party, each party shall promptly return all manifestations of the
other's Proprietary Information in its possession.

        14. TERMINATION

        14.1 Termination for Cause

        This Agreement may be terminated by either party for cause immediately
by written notice upon the occurrence of any of the following events: (i) if the
other ceases to do business, or otherwise terminates its business operations;
provided, however, that the acquisition of all or substantially all of a party's
stock, assets or business shall not be grounds for termination of this
Agreement; or (ii) if the other breaches any material provision of this
Agreement and fails to cure such breach within thirty (30) days of written
notice describing the breach; provided, however, that a breach of the
obligations set forth in Section 6.2 or 13 and shall be grounds for immediate
termination of this Agreement by the non-breaching party; or (iii) if the other
becomes insolvent or seeks protection under any bankruptcy, receivership, trust
deed, creditors arrangement, composition or comparable proceeding, or if any
such proceeding is instituted against the other (and not, dismissed within
ninety (90) days).

                                                                               7
<PAGE>   9

        14.2 Effect of Termination

        Upon any termination or expiration of this Agreement, all pending
purchase orders for release of Products shall be cancelled as of the effective
date of termination or expiration, all sums payable to Seller shall be due and
payable on the effective date of termination or expiration and all licenses
granted to Customer under this Agreement shall immediately terminate, and
Customer shall discontinue all use and distribution of the Products. Upon an
end-user acquiring a copy of the Software incorporated and/or contained in a
Product, the end-user shall be entitled to use that copy of the Software,
subject to the terms and conditions of the End-User License Agreement.

        15. PUBLICITY

        The Parties shall announce this Agreement and the establishment of the
relationship between Customer and Seller under this Agreement pursuant to a
joint press release to be mutually agreed upon prior to issuance. The Parties
agree to submit to each other for approval all press releases relating to this
Agreement and to not publish any press release which mentions the parties
relationship without prior approval of the other party, which approval shall not
be unreasonably withheld.

        16. ASSIGNMENT

        This Agreement shall be binding upon and insure to the benefit of the
parties hereto and their respective permitted successors and assigns. Neither
party may assign its rights or obligations hereunder without the prior written
consent of the other which consent shall not be unreasonably withheld,
conditioned or delayed, provided that no consent shall be required in connection
with an assignment to an entity controlling, controlled by or under common
control with such party, or to an entity that succeeds to all, or substantially
all, of the party's assets whether by merger, sale or otherwise.

        17. MISCELLANEOUS

        17.1 No Waiver

        A waiver by either party of any provision of this Agreement or breach,
in any one instance, shall not be construed as a waiver of any other provision
or subsequent breach thereof.

        17.2 Notices

        Notices under this Agreement shall be in writing and delivered by
certified or registered mail, return receipt requested, or by nationally
recognized overnight courier service next day delivery, or personal deliver, to
the addresses as specified in the first paragraph of this Agreement. Such notice
shall be effective on the date of receipt or refusal thereof by the receiving
party.

                                                                               8
<PAGE>   10

        17.3 Governing Law

        This Agreement shall be governed and construed under California law
without regard to conflicts of law provisions.

        17.4 Severability

        If any provision of this Agreement is held by a court of competent
jurisdiction to be illegal, invalid or unenforceable, that provision shall be
limited or eliminated to the minimum extent necessary so that this Agreement
shall otherwise remain in full force and effect and enforceable.

        17.5 Force Majeure

        A party shall not be liable for non-performance or delay in performance
(other than of payment or confidentiality obligations) caused by any event
reasonably beyond the control of such party including, but not limited to wars,
hostilities, revolutions, riots, civil commotion, national emergency, strikes,
lockouts or other labor disputes or shortages or inability to obtain material or
equipment, unavailability of supplies, compliance with laws or regulation
(including, without limitation, those related to infringement), epidemics, fire,
flood, earthquake, force of nature, explosion, embargo, or any Act of God, or
any law, proclamation, regulation, ordinance or other act or order of any court,
government or governmental agency.

        17.6 Entire Agreement; Amendment

        This Agreement, including all Attachments to this Agreement, constitutes
the entire agreement between the parties relating to the subject matter hereof
and all prior or simultaneous proposals, negotiations, representations,
conversations, discussions and agreements, whether written or oral, among the
parties and all past dealing or industry custom. This Agreement may not be
amended except by a writing signed by the Parties.

        17.7 Counterparts

        This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

                                       9
<PAGE>   11

        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement
effective as of the Effective Date.

ACCELERATED NETWORKS, INC.               FIRSTWORLD COMMUNICATIONS, INC.

By:      /s/ Suresh Nihalani             By:    /s/ Doug Kramer
         ---------------------------           ---------------------------------

Name:    Suresh Nihalani                 Name:    Doug Kramer
         ---------------------------           ---------------------------------

Title:   President & CEO                 Title:   Chief Technology Officer
         ---------------------------           ---------------------------------

Date:    8/5/99                          Date:    8/4/99
         ---------------------------           ---------------------------------

                                                                              10

<PAGE>   12
                                    EXHIBIT A

                                    Products

                Brief Specifications and features of Release 2.0

                  MSAP

                  Chassis
                  *        AN-3204 MSAP 4-slot (field/MDU)
                  *        AN-3220 MSAP 20-slot (CO)

                  Modules
                  *        System Combo Module w/dual uplink slots
                  *        DS-3 and OC-3 ATM uplink daughtercards
                  *        12-port SDSL or T1 line card
                  *        8-port T1 Voice Server Module supports
                  *        ESF framing, robbed bit signaling

                  IAD

                  AN-30
                  *        Business/branch CPE
                  *        One 10/100 Ethernet user port
                  *        Two serial user ports (V.35/V.11)
                  *        12-port analog voice module (FXS)
                  *        1 WAN port: SDSL or T1
                  *        T1 Digital Voice

                  AB-20 (Data Only)
                  *        SOHO/Telecommuter
                  *        One 10 Meg User Port
                  *        1 WAN port: SDSL or T1

                  SOFTWARE FEATURES

                  DATA
                  *        ATM RFC 1483 Ethernet bridging
                  *        ATM RFC 1483 IP routing
                  *        DSS - Dynamic Service Selection
                           *        NAT
                           *        DHCP client and server
                           *        Integral Web server
                           *        Radius client

                  *        RIP, RIP II
                  *        ATM QoS and traffic prioritization
                  *        ATM classes of service UBR, rtVBR, nrtVBR, CBR
                  *        Frame Relay to ATM FRF.5 network and FRF.8 service
                           interworking
                  *        Any-to-any port switching on MSAP
                  *        ISP subscriber aggregation on IAD

                  VOICE
                  *        Toll quality over ATM
                  *        CES per ATM Forum VTOA-0078

<PAGE>   13

                  *        G.711 PCM voice
                  *        AAL1 adaptation over CBR
                  *        Dynamic support for Voice, facsimile and modem
                  *        Multiple voice channels per PVC
                  *        Integral G.168 echo cancellation

                  Network Management Software will follow Release 2.0

                      Above and beyond its generally available Products, and
                      in return for the volume purchases by Customer as stated
                      in Exhibit B to the Product Purchase and Sale Agreement
                      (the "Agreement"), Seller commits to provide the
                      following features in its future releases of Products to
                      Customer (Capitalized terms utilized and not otherwise
                      defined herein shall have the respective meanings given
                      to those terms in the Agreement):

                      July 30, 1999:        Release 2.2, including NAT/DHCP
                      functionality in routed mode

                      September 15, 1999: Release 2.3, including:

                      1.   Line Derivative Timing for DS-3
                      2.   ATM Adaptation Layer 2 (AAL2)

                      The above mentioned releases are either included in the
                      current list price of Products or subsequently published
                      list price of Products pursuant to Exhibit B.

                      Customer agrees to purchase the Accelerated Networks
                      Access Pilot Element Management System (EMS) which
                      currently runs on a Windows NT platform.

                      Should Customer agree to convert to Seller's UNIX-based
                      EMS platform at a later date, Seller hereby agrees that
                      Customer will be billed ONLY for the difference in price
                      between the current NT platform and the upgrade to UNIX.

                                       2
<PAGE>   14
                                    EXHIBIT B

                                 Product Prices

                  Excel Quote sheet identifying complete Standard Price List are
                  attached. Detailed descriptions are provided for information
                  purposes.

                  Installation, Configuration, Maintenance and any other support
                  related prices for the deployment are to be negotiated
                  separately.

                                       3
<PAGE>   15
                  FirstWorld Communications National Price List
                                   Exhibit "B"

AN-20 IAD PRODUCTS (CPE)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                              LIST PRICE
                                                                                        USS

HARDWARE OPTIONS (PLEASE SPECIFY SOFTWARE VERSION ON THE PURCHASE ORDER)
----------------------------------------------------------------------------------------------------------
<S>                        <C>                                                       <C>
AN-20S                     Integrated Access Device Base Unit.  Includes 1-port          $795
                           Ethernet 10BT, 1-port ATM WAN over SDSL at 1.544Mbps.

AN-20S-E2                  Integrated Access Device Base Unit.  Includes 2-ports         $895
                           Ethernet 10BT.  1-port ATM WAN over SDSL at 1.544Mbps.

AN-20T                     Integrated Access Device Base Unit.  Includes 1-port          $895
                           Ethernet 10BT.1-port ATM WAN over unchannelized T1
                           (integral CSU/DSU).

AN-20T-E2                  Integrated Access Device Base Unit.  Includes 2-ports         $995
                           Ethernet 10BT.1-port ATM WAN over unchannelized T1
                           (integral CSU/DSU).
</TABLE>

<TABLE>
<CAPTION>
BASE SOFTWARE (ONE BASE SOFTWARE PER IAD.  MUST SPECIFY THE SOFTWARE VERSION ON
PURCHASE ORDER)
-----------------------------------------------------------------------------------------------------------
<S>                        <C>                                                          <C>
AN-20SW-B2.0               Basic System Software version 2.0 for the AN-20 IAD.          No charge with IAD

AN-20-SW-B2.1              Basic System Software version 2.1 for the AN-20 IAD.          No charge with IAD
</TABLE>

<TABLE>
<CAPTION>
OPTIONAL SOFTWARE
----------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-20-SW-R2.0              Routing Software version 2.0 for the AN-20 IAD.               $100

AN-20-SW-R2.1              Routing Software version 2.1 for the AN-20 IAD.               $100

AN-20-SW-DSSv1             Dynamic Service Selection Software for the AN-20 IAD.         $200
</TABLE>

                                       4
<PAGE>   16
                  FirstWorld Communications National Price List
                                   Exhibit "B"

AN-30 IAD PRODUCTS (CPE)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                   LIST PRICE
                                                                                             USS

HARDWARE OPTIONS (PLEASE SPECIFY SOFTWARE VERSION ON THE PURCHASE ORDER.)
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-30S                     Integrated Access Device Base Unit.  Includes 1-port          $3,995
                           Ethernet 10/100TX, 2-ports Serial V.35/V.11, 1-port ATM WAN
                           over SDSL at 1.544Mbps.  Voice expansion option.  Requires
                           a configuration worksheet with every order.

AN-30T                     Integrated Access Device Base Unit.  Includes 1-port          $4,095
                           Ethernet 10/100TX, 2-ports Serial V.35/V.11, 1-port ATM WAN
                           over unchannelized T1 (integral CSU/DSU).  Voice expansion
                           option.  Requires a configuration worksheet with every
                           order.
</TABLE>

<TABLE>
<CAPTION>
IAD INTERFACE MODULES
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-30VM-A12S               Analog Voice Module for AN-30.  12 analog voice channels      $2,995
                           with an FXS interface.  Supports G.711 PCM voice and G.168
                           echo cancellation.

AN-30VM-A12SC              Analog Voice Module for AN-30.  12 analog voice channels      $3,495
                           with an FXS interface.  Hardware supports G.711 PCM and
                           G.168 echo cancellation.  Hardware ready for G.726 ADPCM
                           requirements.  Software for compression is sold separately.

AN-30VM-D24                Digital Voice Module for AN-30.  24-DS0 digital voice         $2,995
                           module with 2-ports T1 for drop & insert functionality.
                           Supports G.711 PCM voice and G.168 echo cancellation.

AN-30VM-D24C               Digital Voice Module for AN-30.  24-DS0 digital voice         $3,695
                           module with 2-ports T1 for drop & insert functionality.
                           Hardware supports G.711 PCM and G.168 echo cancellation.
                           Hardware ready for G.726 ADPCM requirements.  Software for
                           compression is sold separately.
</TABLE>

<TABLE>
<CAPTION>
BASE SOFTWARE (ONE BASE SOFTWARE PER IAD.  MUST SPECIFY REQUIRED SOFTWARE VERSION ON PURCHASE ORDER)
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-30-SW-B2.0              Basic System Software version 2.0 for the AN-30 IAD.          No charge with IAD

AN-30-SW-B2.1              Basic System Software version 2.1 for the AN-30 IAD.          No charge with IAD
</TABLE>

<TABLE>
<CAPTION>
OPTIONAL SOFTWARE
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-30-SW-DSSv1             Dynamic Service Selection Software for the AN-30 IAD.         $300

AN-30-SW-ACMP2.3           Voice compression software for 12-ports analog voice module.  $495

AN-30-SW-DCMP2.3           Voice compression software for 24-ports digital voice         $695
                           module.
</TABLE>

                                       5
<PAGE>   17
                  FirstWorld Communications National Price List
                                   Exhibit "B"

MSAP PRODUCTS (COE)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                 LIST PRICE
                                                                                           USS

HARDWARE OPTIONS
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AN-3204                    AN-3200 4-slot 19" Chassis. 90-240 VAC power. Requires a      $3,995
                           configuration worksheet with every order.

AN-3220                    AN-3200 20-slot 23" Chassis. - 48 VDC power. Requires a       $7,995
                           configuration worksheet with every order.
</TABLE>

<TABLE>
<CAPTION>
SYSTEM COMBO CARD OPTIONS (REQUIRES AT LEAST ONE SYSTEM COMBO CARD PER MSAP PURCHASED.)
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
SYSMOD1                    System Combo Card includes system processor, 1-port           $4,895
                           Ethernet 10/100TX, 1 console port, and 2-slots for uplink
                           daughtercards.  Requires Aggregator System software or
                           Multi-Service Gateway System software. Specify type of
                           uplink card to be installed. Uplink card is sold separately.

SYSMOD1-CM                 System Combo Card includes system processors, 1-port          $7,985
                           Ethernet 10/100TX, 1 console port, 1 preinstalled OC-3 MM
                           (155Mbps), and 1 preinstalled DS-3 (45Mbps) ATM WAN uplink
                           daughtercards. Requires Aggregator System software or
                           Multi-Service Gateway System software.

SYSMOD1-DS3                System Combo Card includes system processor, 1-port           $5,990
                           Ethernet 10/100TX, 1 console port, 1 preinstalled DS-3
                           (45Mbps) ATM WAN uplink.  Requires Aggregator System
                           software of Multi-Service Gateway System software. Uplink
                           daughtercards must be factory installed.

SYSMOD1-OC3MM              System Combo Card includes system processor, 1-port           $6,890
                           Ethernet 10/100TX, 1 console port, 1 preinstalled OC-3 MM
                           (155Mbps) ATM WAN uplink. Requires Aggregator System
                           software or Multi-Service Gateway System software. Uplink
                           daughtercards must be factory installed.

SYSMOD1-DS3-2              System Combo Card includes system processor, 1-port           $7,085
                           Ethernet 10/100TX, 1 console port, 2 preinstalled DS-3
                           (45Mbps) ATM WAN uplink daughtercards. Requires Aggregator
                           System software or Multi-Service Gateway System software.

SYSMOD2-OC3MM-2            System Combo Card includes system processors, 1.2GB fabric,   $10,885
                           1-port Ethernet 10/100TX, 1 console port, 2 preinstalled
                           OC-3 MM (155Mbps) ATM WAN uplink daughtercards. Requires
                           Aggregator System software or Multi-Service Gateway System
                           software.

DS3-D                      Single port DS-3 (45 Mbps) ATM WAN uplink daughtercard.       $1,095
                           Factory installed only.

OC3-MM-D                   Single port OC-3 MM (155Mbps) ATM WAN uplink daughtercard.    $1,995
                           Factory installed only.

Clock card                 System synchronization module for MSAP system. Requires       $4,995
                           clock card if the purchased MSAP does not have a Voice
                           Server Card.
</TABLE>

                                       6
<PAGE>   18

                              FirstWorld Communications National Price List
                                               Exhibit "B"

AN-30 IAD PRODUCTS (CPE)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                 LIST PRICE
                                                                                           USS

INTERFACE CARD OPTIONS
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
LC12-SDSL                  12-channel line card supports ATM over SDSL. 12 integral      $8,395
                           SDSL modems on daughtercards.

LC12-T1                    12-channel line card supports ATM over unchannelized T1.12    $8,995
                           integral T1 modems with CSU/DSU on daughtercards.

VSIC-8TP                   Octal T1 and Voice Server Card, 8 DS-1 channelized T1         $13,995
                           digital voice interfaces for connection to PBX or Class 5
                           switches. Supports 192 voice channels of G.711 PCM voice
                           and G.158 echo cancellation. Supports structured CES
                           service via CBR voice over AAL1. Requires Multi-Service
                           Gateway System software.

VSIC-8TC                   Octal T1 and Voice Server Card with hardware support for      $18,995
                           voice compression.  8 DS-1 channelized T1 digital voice
                           interfaces for connection to PBX or Class 5 switches.
                           Supports 192 channels of G.711 PCM or 96 voice channels of
                           G.726 ADPCM. Supports G.168 echo cancellation and
                           structured CES service via CBR voice over AAL1 and rtVBR
                           voice over AAL2. Hardware ready for G.726. Software for
                           compression is sold separately.  Requires Multi-Service
                           Gateway System software.

QD-DS3-4                   4-ports DS-3 (45Mbps) ATM WAN uplink daughtercard. Occupy a   $8,995
                           single slot in the chassis and use SMA connectors.
                           Requires an adapter cable to connect to standard BNC
                           terminated cables.
</TABLE>

<TABLE>
<CAPTION>
MSAP SYSTEM SOFTWARE OPTIONS
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
MSAP-SW A2.0               Aggregator System software version 2.0.                       $1,995
                           Required with any purchase of System Combo Card with MSAP
                           unit. May be substituted with Multi-Service Gateway System
                           software.

MSAP-SW-A2.1               Aggregator System software version 2.1.                       Call
                           Required with any purchase of System Combo Card with MSAP
                           unit. May be substituted with Multi-Service Gateway System
                           software.

MSAP-SW-GW2.0              Multi-Service Gateway System software version 2.0.            $4,995
                           Required with any purchase of voice module with MSAP unit.

MSAP-SW-GW2.1              Multi-Service Gateway System software version 2.1             Call
                           Required with any purchase of voice module.
</TABLE>

<TABLE>
<CAPTION>
OPTIONAL SOFTWARE
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
MSAP-SW-VCMP2.3            Voice compression software for 96 voice channels Voice        $2,995
                           Server Card.
                           This option must be purchased for each voice server card
                           that needs voice compression.

GR303-SW-2.2               GR-303 System software.                                       $3,000
                           Requires additional GR-303 software per voice server card.

GR303-VSC-SW-2.2           GR-303 Voice Server Card software.                            $1,000
                           Requires GR-303 System software. This option must be
                           purchased for each voice server card that needs support for
                           GR-303.
</TABLE>

                                       7
<PAGE>   19
                  FirstWorld Communications National Price List
                                   Exhibit "B"

CABLING (NOTE: USE ONLY SHIELDED CABLES FOR T1 AND XDSL CONNECTIONS FOR AN-3200
SERIES)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                               LIST PRICE
                                                                                         USS

CONSOLE CABLE
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                          <C>
CBL-IAD-10                 Console cable, DB9 (Male) to DB9 (Female), 10ft               $30

CBL-MSAP-25                Console cable, DB9 (Male) to DB9 (Female), 25ft               $140

ETHERNET CABLE
-------------------------------------------------------------------------------------------------------------------------------

CETH-IAD-10                10/100 Ethernet, UTP, CAT 5, RJ45, molded, 10ft               $30

CETH-IAD-20                10/100 Ethernet, UTP, CAT 5, RJ45, molded, 20ft               $40

CETH-MSAP-25               10/100 Ethernet, UTP, CAT 5, RJ45, molded, 25ft               $50

CETH-MSAP-50               10/100 Ethernet, UTP, CAT 5, RJ45, molded, 50ft               $100

CETH-MSAP-100              10/100 Ethernet, UTP, CAT 5, RJ45, molded, 100ft              $200

COAXIAL DS-3 CABLE
-------------------------------------------------------------------------------------------------------------------------------

CDS3-MSAP-25               DS-3, dual coaxial, BNC, RG-59/4, NEC CL2, UL Style 1354,     $30
                           25ft

CDS3-MSAP-50               DS-3, dual coaxial, BNC, RG-59/5, NEC CL2, UL Style 1354,     $100
                           50ft

CDS3-MSAP-100              DS-3, dual coaxial, BNC, RG-59/4, NEC CL2, UL Style 1354,     $150
                           100ft

FIBEROPTICS OC-3 CABLE
-------------------------------------------------------------------------------------------------------------------------------

COC3-MSAP-3M               OC-3 duplex, SC to SC connector, MM (multimode), 3m           220

COC3-MSAP-5M               OC-3 duplex, SC to SC connector, MM (multimode), 5m           250

COC3-MSAP-8M               OC-3 duplex, SC to SC connector, MM (multimode), 8m           270

T1 CABLE
-------------------------------------------------------------------------------------------------------------------------------

CT1-IAD-10                 T1 uplink cable, UTP, RJ48, 10ft                              $30

CT1-IAD-20                 T1 uplink cable, UTP, RJ48, 20ft                              $45

SDSL CABLE
-------------------------------------------------------------------------------------------------------------------------------

CSDSL-IAD-10               SDSL uplink cable, UTP, CAT 5, RJ48, molded, 10ft             $30

CSDL-IAD-20                SDSL uplink cable, UP, CAT 5, RJ48, molded, 20ft              $45

CABLE FOR LINE CARD
OR VOICE SERVER CARD
-------------------------------------------------------------------------------------------------------------------------------

C1LCVSC-15                 LC/VSC Metallic 50pin telco conn one end, shield w drain,     $200
                           15ft

C1LCVSC-25                 LC/VSC Metallic 50pin telco conn one end, shield w drain,     $220
                           25ft

C1LCVSC-50                 LC/VSC Metallic 50pin telco conn one end, shield w drain,     $250
                           50ft

C2LCVSC-15                 LC/VSC Metallic 50pin telco conn both ends, shield w drain,   $120
                           15ft

C2LCVSC-25                 LC/VSC Metallic 50pin telco conn both ends, shield w drain,   $160
                           25ft

C2LCVSC-50                 LC/VSC Metallic 50pin telco conn both ends, shield w drain,   $220
                           50ft

SERIAL CABLE
-------------------------------------------------------------------------------------------------------------------------------

CDCEDTE-10                 Serial Cable for connection to DCE device, 10ft               $210
                           (Slimline 26 male to V.35 female)

CDCEDCE-10                 Serial cable for connection to DCE device, 10ft               $250
                           (Slimline 26 male to V.35 male)

CDCEDTE-20                 Serial cable for connection to DCE device, 20ft               $250
                           (Slimline 26 male to V.35 female)

CDCEDCE-20                 Serial cable for connection to DCE device, 20ft               $300
                           (Slimline 26 male to V.35 male)
</TABLE>

                                       8
<PAGE>   20
                  FirstWorld Communications National Price List
                                   Exhibit "B"

NETWORK MANAGEMENT PRODUCTS

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                   LIST PRICE
                                                                                             USS

NT SOFTWARE OPTIONS
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
AP-NTOV10-2.0              Network Management Software for HP OpenView on Windows NT     $4,995
                           platform. Supports up to 10 AN-3200 and attached CPE
                           devices. Integrated functionality includes Local Domain
                           Manager with SNMP and CORBA northbound interfaces. (Windows
                           NT, HP OpenView and hardware not included)

AP-NTOV50-2.0              Network Management Software for HP OpenView on Windows NT     $14,995
                           platform. Supports up to 50 AN-3200 and attached CPE
                           devices. Integrated functionality includes Local and Multi
                           Domain Manager with SNMP and CORBA northbound interfaces.
                           (Windows NT, HP OpenView and hardware not included)

AP-NTOV250-2.0             Network Management Software for HP OpenView on Windows  NT    $39,995
                           platform.  Supports up to 250 AN-3200 and attached CPE
                           devices. Integrated functionality includes Local and Multi
                           Domain Manager with SNMP and CORBA northbound interfaces.
                           (Windows NT, HP OpenView and hardware not included)

UNIX SOFTWARE OPTIONS
-------------------------------------------------------------------------------------------------------------------------------

AP-UNIX10-2.0              Network Management Software for HP OpenView on Sun Solaris    Call
                           platform. Supports up to 10 AN-3200 and attached CPE
                           devices. Integrated functionality includes Local Domain
                           Manager with SNMP and CORBA northbound interfaces. (Sun
                           Solaris, HP OpenView and hardware not included)

AP-UNIX50-2.0              Network Management Software for HP OpenView on Sun Solaris    Call
                           platform. Supports up to 50 AN-3200 and attached CPE
                           devices. Integrated functionality included Local and Multi
                           Domain Manager with SNMP and CORBA northbound interfaces.
                           (Sun Solaris, HP OpenView and hardware not included)

AP-UNIX250-2.0             Network Management Software for HP OpenView on Sun Solaris    Call
                           platform. Supports up to 250 AN-3200 and attached CPE
                           devices. Integrated functionality includes Local and Multi
                           Domain Manager with SNMP and CORBA northbound interfaces.
                           (Sun Solaris, HP OpenView and hardware not included)
</TABLE>

                                       9
<PAGE>   21
                  FirstWorld Communications National Price List
                                   Exhibit "B"

LITERATURE

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                              LIST PRICE
                                                                                        USS
<S>                        <C>                                                      <C>
MANUAL AN-20               AN-20 User Manual                                             $20

MANUAL AN-30               AN-30 User Manual                                             $25

MANUAL AN-3200             AN-3200 Reference Guide                                       $200
</TABLE>

                                       10
<PAGE>   22
                  FirstWorld Communications National Price List
                                   Exhibit "B"

SUPPORT AND SERVICES

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                   LIST PRICE
                                                                                             USS

MAINTENANCE PROGRAMS (ANNUAL)
-------------------------------------------------------------------------------------------------------------------------------
<S>                       <C>                                                             <C>
14ct GoldenCare            Includes:                                                       6% of list
                           - TAC access from 6 a.m. to 6 p.m. PST, Mon-Fri.
                           -  Access to "TechNet" Web based technical support resources.
                           -  Electronic notification and access of maintenance
                           software releases.

18ct GoldenCarePlus        Includes:                                                       10% of list
                           - TAC access 24 hours a day, 7 days a week. TAC access after
                           business hours is provided by pager with a 15 minutes
                           response.
                           -  Access to "TechNet" Web based technical support resources.
                           -  Electronic notification and access of maintenance and
                           minor software releases.

24ct PureGoldCare          Includes:                                                       18% of list
                           - TAC access 24 hours a day, 7 days a week. TAC access after
                           business hours is provided by pager with a 15 minutes
                           response.
                           -  On site remedial maintenance 24 hours a day, 365 days a
                           year.
                           -  Includes repair or replacement of Accelerated Networks
                           products that are diagnose as faulty.
                           -  Access to "TechNet" Web based technical support resources.
                           -  Electronic notification and access of maintenance and
                           minor software releases.

Advanced Parts             Includes:                                                       3% of list
                           - Shipment of replacement part the same business for requests
                           received prior to 2:00 PM US Pacific time.
                           -  Advanced replacement requests received after 2:00 PM are
                           shipped the next business day.
                           -  Faulty parts must be returned within 30 days of receipt
                           of replacement or replacement part is invoiced at full list
                           price.
                           -  Pre-requisite of either the 14ct GoldenCare or 18ct
                           GoldenCare Maintenance Programs.
</TABLE>

         Note:

                  Maintenance Programs do not include software releases that
                  enhance the functionality of previously sold product. Such
                  software upgrades options and features may be sold separately
                  and are not part of any Maintenance Program. On site remedial
                  maintenance response time and availability subject to
                  location.

                                       11
<PAGE>   23
                  FirstWorld Communications National Price List
                                   Exhibit "B"

SUPPORT AND SERVICES

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                   LIST PRICE
                                                                                             USS

INSTALLATIONS
-------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                                                           <C>
InstallationStd-US         Standard Domestic Installation Includes:                      10% OF LIST
                           ---------------------------------------
                           - Installation of Products, purchased from Accelerated
                           Networks, during normal local working hours
                           -  Verification of proper hardware operation
                           -  Basic configuration to permit access of equipment from
                           the network
                           -  All installation-related travel expenses within the
                           continental U.S.

                           Standard Installation excludes:
                           -------------------------------
                           - Customer, network, power or telecom writing
                           -  Local Loop qualification or line testing
                           -  Adjustment/fine tuning of voice levels
                           -  Custom configuration
                           -  Network optimization

EXTENDED WARRANTY
-------------------------------------------------------------------------------------------------------------------------------

ESERV/AG1                  Extended Warranty Service for 1 year. Includes parts and      5% of list
                           labor with a 15 days repair cycle.

EQUIPMENT STAGING
-------------------------------------------------------------------------------------------------------------------------------

HT-STG                     Special Request: Hot Staging                                  2.5% of list
                           ----------------------------
                           Product preconfigured to customer's specifications and
                           tested in a live like environment. Requires customer
                           completion of configuration form and network diagram.

REPAIRS
-------------------------------------------------------------------------------------------------------------------------------

NWSERV-R1                  Equipment that is out of warranty and not covered by a        35% of list
                           maintenance contract is repaired with a 15 days repair
                           cycle. All shipment are prepaid.

ADVANCED REPLACEMENT
-------------------------------------------------------------------------------------------------------------------------------

NWSERV=AR1                 Includes:                                                     45% of list
                           - On demand shipment of replacement part the same business
                           day for requests received prior to 2:00 PM US Pacific time.
                           - Advanced replacement requests received after 2:00 PM are
                           shipped the next business day.
                           - Faulty parts must be returned within 30 days of receipt
                           of replacement or part is invoiced at full list price.
                           - If upon inspection the faulty part is deemed
                           unrepairable, the Advanced replacement shipment is invoiced
                           at full list price.
</TABLE>

                                       12
<PAGE>   24
                  FirstWorld Communications National Price List
                                   Exhibit "B"

FIELD REPLACEMENT UNITS (SPARES)

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                               LIST PRICE
                                                                                         USS

<S>                        <C>                                                  <C>
FOR AN-3204 MSAP
-------------------------------------------------------------------------------------------------------------------------------
FR-PSVAC-3204              90-240 VAC Power Supply AN-3204                               Call

FR-RMK19-3204              Rack Mounting Kit 19", AN-3204                                Call

FR-RMK23-3204              Rack Mounting Kit 23", AN-3204                                Call

FOR AN-3220 MSAP
-------------------------------------------------------------------------------------------------------------------------------

FR-BLANKPNL                Blank Panel                                                   Call

FR-FTU-3220                Fan Tray Unit AN-3220                                         Call

FR-PLEX-3220               Plexi-glass door to protect the cables on AN-3220             Call

FR-RMK23-3220              Rack Mounting Kit 23", AN-3220                                Call
</TABLE>

                                       13
<PAGE>   25
                  FirstWorld Communications National Price List
                                   Exhibit "B"

PREVIOUS SOFTWARE VERSION OPTIONS

<TABLE>
<CAPTION>
MODEL                      DESCRIPTION                                                   LIST PRICE
                                                                                             USS

<S>                        <C>                                                          <C>
AN-20-IAD SOFTWARE
-------------------------------------------------------------------------------------------------------------------------------

AN-20-SW-B1.2              Basic System Software version 1.2 for the AN-20 IAD.          No charge with IAD
                           Includes RFC 1483 bridged mode.

AN-20SW-R1.2               Routing Software version 1.2 for the AN-20 IAD.  Supports     $100
                           RIP 1 & RIP 2 routing.

MSAP SOFTWARE
-------------------------------------------------------------------------------------------------------------------------------

MSAP-SW-A1.2               Aggregator System software version 1.2                        $1,995
</TABLE>

                                       14
<PAGE>   26
                  FirstWorld Communications National Price List
                                   Exhibit "B"

ORDERING INFORMATION

         Customers must specify the type and version of the software on their
         purchase order.

         Software License: Accelerated Networks Inc. grants customer a
         non-exclusive, non-sublicenseable license to install and use
         Accelerated Networks Inc. software. This software is licensed and not
         sold. Customer acknowledges and agrees that the software contains trade
         secrets and other proprietary information of Accelerated Networks Inc.
         and that Accelerated Networks Inc. retains all title to and, except as
         expressly and unambiguously licensed herein, all right and interest in
         the software and all intellectual property rights worldwide therein.

         Hardware configuration sheet must be completed for each MSAP order.

         Every MSAP base unit must be configured with either Aggregator System
         software or Multi-Service Gateway System software. See section on MSAP
         System software.

         MSAP System requiring a Voice Module must have Multi-Service Gateway
         System software installed. See section on MSAP System Software.

         Select cables from cabling section. Cable Guide diagram is available on
         our website:

                  http://www.acceleratednetworks.com/

                  When ordering, please remit Purchase Order to:

                  Accelerated Networks, Inc.
                  Attn:  Sales Order Administration Department
                  301 Science Drive
                  Moorpark, CA  93021
                  (805) 553-9680 Telephone
                  (805) 553-9690 Facsimile

                  Web Site:  www.acceleratednetworks.com

                  Email:  sales@acceleratednetworks.com

         All prices are FOB factory and subject to change without notice.
         Contact Accelerated Networks directly for additional information.

                                       15
<PAGE>   27
                  FirstWorld Communications National Price List
                                   Exhibit "B"

SERVICE AND REPAIR POLICY

WARRANTY INFORMATION

         All Accelerated Networks' products are covered by a 12-month
         return-to-factory warranty. No-charge advance replacement within 30
         days of product shipment.

         Customer is responsible for inbound freight cost when returning the
         product to factory for troubleshoot, repair, or rework.

         No charge for parts replacement or labor. Factory is responsible for
         outbound freight cost.

OUT OF WARRANTY INFORMATION

         Product without warranty and maintenance contract will be subjected to
         a 35% of the list price for repairs/services.

         Additional 10% of the list price will be added to any expedited service
         with turnaround time of 24 hrs instead of 15 business days.

WARNING:

         Warranty is void if field upgrades, repairs or replacement are
         attempted by non qualified or unauthorized personnel.

                                       16
<PAGE>   28
                  FirstWorld Communications National Price List
                                   Exhibit "B"

GLOSSARY

GLOSSARY OF TERMS

Standard                   Product lead time is 60 days ARO

Contact                    Call for product information

AN-20                      Accelerator 20 CPE product

AN-30                      Accelerator 20 CPE product

AN-30                      Accelerator 30 CPE product

AN-3200                    Accelerator AN-3200 Multi-Service
                           Aggregator / Gateway product

SYSMOD                     System Combo Card

LC                         Line Card

VSIC                       Voice Service and Interface Card

CONTACT INFORMATION

                           Accelerated Networks, Inc.
                           Web Site:  www.acceleratednetworks.com

                           Email:  sales@acceleratednetworks.com

                                       17
<PAGE>   29
                                    EXHIBIT C

                       END USER SOFTWARE LICENSE AGREEMENT
                       END USER SOFTWARE LICENSE AGREEMENT

This End User Software License Agreement ("Agreement") is entered into by
Accelerated Networks,. Inc. ("Licensor") and the end user identified below ("End
User").

CAREFULLY READ THE FOLLOWING TERMS AND CONDITIONS. BY INSTALLING AND USING
SOFTWARE INCLUDED WITH THE ACCELERATED PRODUCTS, YOU ARE AGREEING TO BE BOUND BY
THESE TERMS AND CONDITIONS. IF YOU DO NOT AGREE TO THESE TERMS AND CONDITIONS,
DO NOT USE THE ACCELERATED PRODUCTS.

1. GRANT OF LICENSE. Subject to the terms and conditions of this Agreement
Licensor grants End User a non-exclusive, non-sublicenseable license to install
and use Licensor's software ("Software"). The Software is licensed and not sold.
End User acknowledges and agrees that the Software contains trade secrets and
other proprietary information of Licensor and that Licensor retains all title to
and, except as expressly and unambiguously licensed herein, all right and
interest in the Software and all intellectual property rights worldwide therein.

2. RESTRICTIONS. End User may make one (1) backup COPY of the Software for
archival purposes only. The Software is licensed as a single product and may not
be separated into its component parts for any reason whatsoever. End User shall
not (and shall not allow any third party to) (i) decompile, disassemble, or
otherwise reverse engineer (except to the extent expressly permitted under
applicable law) or attempt to reconstruct or discover any of Licensor's source
code, underlying ideas, algorithms, trade secrets or other proprietary
information by any means whatsoever, (ii) remove any product identification,
copyright or other notices, or (iii) provide, lease, lend, use for timesharing
or service bureau purposes or otherwise use or allow others to use the Software
to or for the benefit of third parties.

3. TERMINATION. This Agreement is effective until terminated. This Agreement
will terminate automatically if End User fails to cure any material breach of
this Agreement within thirty (30) days of receiving notice of such, breach (or
immediately in the case of a breach of Section 2. (Restrictions)). Upon
termination, End User shall immediately cease all use of the Software and return
or destroy all copies of the Software and all portions thereof and so certify to
Licensor. Except for the license and except as otherwise expressly provided
herein, the terms of the Agreement shall survive termination. Termination is not
an exclusive remedy and all other remedies will be available whether or not the
Agreement is terminated.

4. NO GOVERNMENT USE. End User represents that it is not a U.S. government
agency and it is not acquiring the license pursuant to a U.S. government
contract or with U.S. government funds; the license does not authorize or allow
use by, or funded by, any U.S. governmental entity.

5. WARRANTY DISCLAIMER. For a period of ninety (90) following End User's receipt
thereof, Licensor warrants that the Software will substantially conform to
Licensor's published specifications therefor and that the media on which the
Software is provided is free from material defects. End User expressly
acknowledges and agrees that except as expressly set forth above, the Software
is provided "AS-IS" and that use of the Software is at End User's sole risk.
LICENSOR EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT
NOT LIMITED TO, THE IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE AND NON INFRINGEMENT. LICENSOR DOES NOT WARRANT THAT THE
SOFTWARE WILL MEET END USER'S REQUIREMENTS, OR THAT OPERATION OF THE SOFTWARE
WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT DEFECTS IN THE SOFTWARE WILL BE
CORRECTED. SOME STATES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES.

6. LIABILITY LIMITATION. UNDER NO CIRCUMSTANCES INCLUDING, WITHOUT LIMITATION,
NEGLIGENCE, SHALL LICENSOR BE LIABLE FOR THE COST OF PROCUREMENT OF SUBSTITUTE
GOODS, SERVICES OR TECHNOLOGY OR FOR ANY INCIDENTAL, SPECIAL OR CONSEQUENTIAL
DAMAGES RESULTING FROM THE USE OR INABILITY TO USE THE SOFTWARE, EVEN IF
LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SOME STATES DO NOT
ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL
DAMAGES. IN NO EVENT SHALL LICENSOR'S TOTAL LIABILITY UNDER THIS AGREEMENT FOR
ALL DAMAGES, LOSSES, AND CAUSES OF ACTION (WHETHER IN CONTRACT TORT (INCLUDING
NEGLIGENCE) OR OTHERWISE) EXCEED THE AMOUNT OF LICENSE FEES PAID TO LICENSOR
HEREUNDER. THIS SECTION 6 DOES NOT LIMIT LIABILITY FOR DEATH OR BODILY INJURY OF
A PERSON.

7. GENERAL. This Agreement may not be assigned or amended except with Licensor's
prior written consent. No failure to exercise any right hereunder will operate
as a waiver thereof If any provision of this Agreement shall be adjudged by any
court of competent jurisdiction to be unenforceable or invalid, that provision
shall be limited or eliminated to the minimum extent necessary so that this
Agreement shall otherwise remain in full force and effect and enforceable. This
Agreement shall be construed pursuant to the laws of the State of California and
the United States without regard to conflicts of laws provisions

                                       18
<PAGE>   30
thereof and without regard to the United Nations Convention on Contracts for the
International Sale of Goods. End User shall not export or remove the Software or
any portion or direct product thereof from the country in which End User
received delivery of the Software from Licensor. The sole jurisdiction and venue
for actions related to the subject matter hereof shall be the Colorado state and
U.S. federal courts having within their jurisdiction the location of Licensor's
principal place of business. The prevailing party in any action to enforce this
Agreement shall be entitled to recover costs and expenses including reasonable
attorneys' fees. The parties agree that a material breach of this Agreement by
End User would cause irreparable injury to Licensor for which monetary damages
would not be an adequate remedy and that the Licensor shall be entitled to
equitable relief in addition to any remedies it may have hereunder or at law.
This Agreement is the complete and exclusive statement of the mutual
understanding of the parties and supersedes and cancels all previous written and
oral agreements and communications relating to the subject matter of this
Agreement.

ACCELERATED NETWORKS, INC.

                                       19

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