Co-development Agreement Dated Oct. 15, 1997

EXHIBIT 10.13


Co-Development Agreement Between
Centillium Technology Corporation
And
Mitsubishi Electric Corporation


This Co-Development Agreement (this "Agreement") is effective as of October 15. 1997 (the "Effective Date") by and between Centillium Technology Corporation. a California corporation, having its principal place of business at 46824 Lakeview Blvd, Fremont Ca 94538. United States of America ("Centillium"), and Mitsubishi Electric Corporation. Communication Systems Business Division a Japan corporation, having its principal place of business at 8-1-1. Tsukaguchi- Honmachi, Amagasaki City, Hyogo 661. Japan ("Mitsubishi").


- WITNESSETH -


WHEREAS, Centillium has expertise in the area of telecommunications integrated circuits, including those which utilize multilevel modulation techniques to enable high speed communications over copper, also known as Digital Subscriber Line (xDSL) Technology; and


WHEREAS, Mitsubishi has expertise in the area of telecommunications systems and associated technologies; and


WHEREAS, the parties hereto believe that each will derive benefits from a business relationship in which they will work cooperatively to use Centillium's integrated circuit solution for the copper interface portion of transmission systems (the "CopperBullet") to develop Line Cards that can plug into Mitsubishi's xDSL ATM Access System ("System"); and


WHEREAS, Centillium will be in a position to provide Mitsubishi with Line Card design support and testing in exchange for Non Recurring Engineering (NRE) payments; and


WHEREAS the parties hereto wish to set forth in this Agreement the guidelines of their cooperation.


NOW, THEREFORE, in consideration of the covenants herein contained, the parties hereto agree as follows:


1. General Description of responsibility: It is contemplated by this agreement that Centillium and Mitsubishi will cooperate in the development of a DSL line card for Mitsubishi's System. The following roles are defined to better manage the product development


A.) Project Leader and System Integrator: Mitsubishi assumes the role of the
primary project leadership. Once the development of the Line Card is
completed, Mitsubishi will have the sole responsibility to integrate the
Line Card functionality with the functionality of the rest of the System.


B.) Line Card Development Support: Centillium will provide design services and
support for the development of the xDSL Line Card.


C) CPE modem Design: Centillium shall develop the Customer Premise Equipment
(CPE) for the purpose of prototype testing of the Line Cards. At the
conclusion of the development phase. Centillium shall provide Mitsubishi
its CPE reference design documents. Mitsubishi and its subsidiaries shall
be granted a non-exclusive right to manufacture and sell the CPE modems
containing Centillium's CopperBullet Device.


2. A) Milestones:
For the purpose of the management of the project, a number of milestones
are listed in Attachment A. The completed result of each milestone should
be shared between both parties in a timely manner


B) deliverables:
The following list specifies the deliverables for this project. The parties
recognize that the performance of each side may be impacted by the timely
delivery of the other party's respective deliverables.


---------------------------------------------------------------------------------------------------------- Deliverable Item Responsible Due Date ---------------------------------------------------------------------------------------------------------- 1 Line Card detail Specification Mitsubishi 11/28/97
Document ---------------------------------------------------------------------------------------------------------- 2 Final Line Card detail specification Mitsubishi 2/1/98
Doc. ---------------------------------------------------------------------------------------------------------- 3 Paper copy and Netlist file of the Centillium 2/19/98
circuit Design Schemetic including,
Protection design. Splitter (filter)
design. CB Interface design to
MicroController, and transmit driver
design. ---------------------------------------------------------------------------------------------------------- 4 Paper copy of Mitsubishi's part of the Mitsubishi 2/6/98
Line Card schemetic which should
include all of the functions not
covered by Centillium's schematic,
including power. Microcontroller
circuit, backplane interface, etc. ---------------------------------------------------------------------------------------------------------- 5 Copper Bullet Pin Assignment Centillium 2/2/98 ---------------------------------------------------------------------------------------------------------- 6 Paper copy of the Combined schematics Mitsubishi 3/5/98
from Items 3 and 4 above ---------------------------------------------------------------------------------------------------------- 7 Design Review Mitsubishi and 3/9/98
Centillium ---------------------------------------------------------------------------------------------------------- 8 Schematic Approval Mitsubishi & 3/16/98
Centillium ---------------------------------------------------------------------------------------------------------- 9 Component placement and signal routing Centillium 3/16/98
guidelines ---------------------------------------------------------------------------------------------------------- 10 Five Dummy Packages of CopperBullet Centillium 4/30/98
which includes Centillium logo but it
does not contain any silicon die. ---------------------------------------------------------------------------------------------------------- 11 Twenty (20) CopperBullet engineering Centillium 6/15/98
samples delivery ---------------------------------------------------------------------------------------------------------- 12 Release 1 of ...