<PAGE>

                                 EMPLOYMENT AGREEMENT


     The Agreement, dated as of October 8, 1998 , is between Digital Microwave
Corporation, a California corporation ("Employer"), and Jean Francois Grenon,
("Employee").

RECITALS

*  Employee was the President and CEO of  Innova Corporation, a wholly owned
subsidiary of Digital Microwave Corporation and has been employed by Innova
Corporation prior to the acquisition of Innova Corporation and is currently
serving as the President of the newly formed Medium Capacity Systems Division, a
division of Digital Microwave Corporation. 

*  Employer desires to continue to employ Employee and to assure itself of the
continued services of Employee for the Period of Employment provided for in the
Employment Agreement, and Employee desires to be employed by Employer for such
period, upon the following terms and conditions.

*  Should the proposed merger of Digital Microwave Corporation and Innova
Corporation fail to be culminated, then this Employment Agreement and its terms
and conditions of employment will be declared null and void.  Such declaration
will not obligate either party of this agreement to perform any of the
commitments, responsibilities nor cause one party to be obligated to pay damages
to the other party.




ACCORDINGLY, the parties agree as follows:


1.  Period of Employment.

(a)  Basic Term.  Employer shall employ Employee to render services to Employer
in the position and with the duties and responsibilities described in Section 2
for the period (the "Period of Employment" commencing on the date of this
Agreement and ending on the date which the Period of Employment is terminated in
accordance with Section 4.

(b)  Initial Term.  For a one year period commencing on the date of this
Agreement (the "Initial Term"), neither Employer nor Employee may terminate the
Period of Employment Not for Cause (pursuant to Sections 4(c) and 4(d).  During
the Initial Term, this Agreement may be terminated for the following reasons
only:  By Death (pursuant to Section 4(a)), By Disability (pursuant to Section
4(b)), By Employer For Cause (pursuant to Section 4(d)), and By Employee for
Good Reason Upon Change of Control (pursuant to Section 4(f)).  The Initial Term
will end one year after the date of this Agreement, unless terminated sooner
pursuant to Sections 4(a), 4(b), 4(d), or 4(f).

2.  Position and Responsibilities.

(a)  Position.  Employee shall continue employment with Employer as President of
the Medium Capacity Systems Division and shall perform all services appropriate
to that position as well as other duties that may be assigned by Employer.
Employee shall devote his best efforts and full-time attention to the
performance of his duties.  Employee shall be subject to the direction of
Employer, which shall retain full control of the means and methods by which he
performs the above services and of the place(s) at which all services are
rendered.  Employee shall report to the Chairman and CEO of the parent company. 
Employee shall be expected to travel if necessary or advisable in order to meet
the obligations of his position.


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(b)  Other Activity.  Except upon the prior written consent of Employer,
Employee (during the Period of Employment) shall not (i) accept any other
employment; or (ii) engage, directly or indirectly, in any other business,
commercial, or professional activity (whether or not pursued for pecuniary
advantage) that is or may be competitive with Employer, that might create a
conflict of interest with Employer, or that otherwise might interfere with the
business of Employer, or any Affiliate.  An "Affiliate" shall mean any person or
entity that directly or indirectly controls, is controlled by, or is under
common control with Employer.  Notwithstanding the foregoing, upon reasonable
notice to Employer, Employee may serve as a director of one for profit entity
and one not for profit entity so long as such entity is not competitive with
Employer or any Affiliate and where such service does not otherwise create a
conflict of interest.  

(c)  Employee shall be bound by the Non-Compete Agreement which is attached as
Exhibit A, and by reference is incorporated into this Employment Agreement.

3.  Compensation and Benefits.

(a)  Compensation.  In consideration of the services to be rendered under the
Agreement, Employer shall pay Employee a base salary of $235,000.00 per year,
payable semi-monthly, pursuant to the procedures regularly established, and as
they may be amended, by Employer in its sole discretion, during the Period of
Employment.  Employer shall review annually Employee's compensation and shall
determine, in its sole discretion, whether and how much the existing
compensation shall be adjusted, without regard to any policy or practice
Employer may have for adjusting salaries. There will not be a salary deduction
to the base salary during the life of this Agreement.  In addition to base
salary, Employee shall be eligible to participate in the Employer's executive
management incentive bonus and stock option plans according to the terms of
those plans.  The initial target bonus for the balance of Digital Microwave's
1999 fiscal year will be $100,000.00. The criteria for receiving the award will
be the accomplishment of the Medium Capacity Systems Division's business and
financial goals that were agreed on during the business planning that resulted
in the merger of Digital Microwave and Innova. 

(a-2)  Thereafter, Employee shall participate in Employer's Key Employee
Incentive Plan.  The target bonus award will be 50% of Employee's base salary at
the beginning of the fiscal year, to be paid annually following the
certification of the business results of Digital Microwave Corporation.  The
criteria for receiving an award under this Plan will be based on the successful
accomplishment of the Medium Capacity Systems Division's business objectives,
(75% of the target award) and the degree of success that Digital Microwave has
in achieving its financial goals for the fiscal year.  (25% of the target
award.)  The Plan is capped at 150% of the target award.  A minimum threshold
achievement of target goals must be met in order to receive any bonus award
under the Plan.  (See Exhibit A for a description of the Plan.)

The initial stock option grant of the right to purchase shares of Digital
Microwave Corporation Common Stock shall be 300,000 shares with 60,000 shares
vesting on the first anniversary of the date this agreement becomes effective,
and the balance vesting in 20% increments on each anniversary of your date of
hire.  This option will be granted under the provisions of the 1994 Digital
Microwave Stock Option Plan which includes "Change of Control" language
protection in the option agreement.  The share price will be determined by the
Compensation Committee of the Board at a special meeting on the day the
acquisition takes effect.

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(b)  Benefits.  Employee shall be entitled to vacation leave in accordance with
Innova Corporation's standard policies.  As Employee becomes eligible thereof,
Employee shall have the right to participate in and to receive benefits from all
present and future benefit plans specified in Employer's policies and generally
made available to similarly situated employees of Employer.  The amount and
extent of benefits to which Employee is entitled shall be governed by the
specific benefit plans, as amended.  Employee also shall be entitled to any
benefits or compensation tied to termination as described in Section 4.  Nothing
stated in the Agreement shall prevent Employer from changing or eliminating any
benefit during the Period of Employment as Employer, in its sole discretion, may
deem necessary or desirable.  No statement concerning benefits or compensation
to which Employee is entitled shall alter in any way the term of the Agreement,
any renewal thereof, or its termination.  All compensation and comparable
payments to be paid to Employee under the Agreement shall be less withholdings
required by law.

(c)  Expenses.  Employer shall reimburse Employee for reasonable travel and
other business expenses incurred by Employee in the performance of his duties,
in accordance with Employer's policies, as they may be amended in Employer's
sole discretion.

4.  Termination of Employment.

(a)  By Death.  The Period of Employment shall terminate automatically upon the
death of Employee.  Employer shall pay to Employee's beneficiaries or estate, as
appropriate, any, compensation then due and owing, including payment for accrued
unused vacation, if any, and will when due make a payment of any incentive bonus
to which the Employee would have been entitled prorated based on the number of
months the Employee was employed during the incentive bonus period.  Thereafter,
all obligations of Employer under the Agreement shall cease.  Nothing in the
Section shall affect any entitlement of Employee's heirs to the benefits of any
life insurance plan or other applicable benefits.  

(b)  By Disability.  If, by reason of any physical or mental incapacity,
Employee has been or will be prevented from properly performing his duties under
the Agreement for more than ninety (90) consecutive days, then, to the extent
permitted by law, Employer may terminate the Period of Employment without any
advance notice.  Employer shall pay Employee all compensation to which he is
entitled up through the day notice of termination is provided, and, in addition,
Employee shall be entitled to the following benefits provided in subparagraph
4(c): severance, health insurance premium payments, prorated incentive bonus,
and continued vesting of stock options; thereafter, all obligations of Employer
under this Agreement shall cease.  Nothing in this Section shall affect
Employee's rights under any applicable Employer disability plan; provided,
however, that the severance benefits to which Employee is entitled shall be
offset by any disability income payments received by Employee so that the total
monthly severance and disability income benefit payments for the severance
period shall not exceed Employee's then current salary.  

(c)  By Employer Not For Cause.  At any time following the Initial Term,
Employer may terminate the Period of Employment Not for Cause for any reason, by
providing Employee thirty (30) days' advance written notice, provided that
Employee shall be paid, in addition to all compensation due and owing through
the last day actually worked, severance in an amount equal to twelve (12) months
the Employee's then current base salary.  Such severance shall be paid by
Employer to Employee in 12 equal monthly installments, commencing one month from
the date of termination, or, at Employer's discretion, in a single lump sum on
the termination date.  Employer shall also pay the Employer's share of health
insurance premiums for a period of up to 12 months, or until Employee is
eligible to participate in another employer's plan, whichever comes first,
should Employee elect to convert his health insurance benefits under COBRA. 
Employer shall also pay when due any incentive bonus to which the Employee would
have been entitled prorated based on the number of months the Employee was
employed during the incentive bonus period and will permit Employee's stock
options, if any, to continue to vest for 6 months following the termination
date.  If Employer terminates the Period of Employment Not for Cause within
eighteen (18) months following a Change of Control as defined in subparagraph
4(g), Employee shall receive the severance benefits set forth in subparagraph
4(g)(i)-(iv) rather than the severance benefits set forth in the subparagraph
4(c).  

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Employer shall have the option, in its complete discretion, to terminate the
Period of Employment at any time prior to the end of such notice period,
provided Employer pays Employee all compensation due and owing through the last
day actually worked plus an amount equal to the base salary Employee would have
earned through the balance of the above notice period in addition to the
severance benefits described above; thereafter, all of Employer's obligations
under the Agreement shall cease.  Employer may dismiss Employee without cause
notwithstanding anything to the contrary contained in or arising from any
statements, policies, or practices of Employer relating to the employment,
discipline, or termination of its employees.

(d)  By Employer For Cause.  At any time, and without prior notice, Employer may
terminate the Period of Employment for Cause (as defined below).  Employer shall
pay Employee all compensation then due and owing; thereafter, all of Employer's
obligations under the Agreement shall cease.  Termination shall be for "Cause"
if Employee:  (i) acts in bad faith and to the detriment of Employer;
(ii) exhibits in regard to his employment willful misconduct, dishonesty,
habitual neglect of duties, or any willful act or omission that may materially
and adversely affect the Employer's business or that involves fraud,
embezzlement or misappropriation of any property or proprietary information of
the Employer; (iv) is convicted of a crime involving dishonesty, breach of
trust, or physical or emotional harm to any person; or (v) breaches any material
term of the Agreement.  If termination is due to Employee's disability, Section
4(b) above shall control, and not the subsection on termination for Cause.

(e)  By Employee Not for Cause.  At any time following the Initial Term,
Employee may terminate the Period of Employment for any reason, with or without
cause, by providing Employer thirty (30) days' advance written notice.  Employer
shall have the option, in its complete discretion, to make termination of the
Period of Employment effective at any time prior to the end of such notice
period, provided Employer pays Employee all compensation due and owing through
the last day actually worked, plus an amount equal to the base salary Employee
would have earned through the balance of the above notice period, not to exceed
one thirty (30) days; thereafter, all of Employer's obligations under the
Agreement shall cease.
  
(f)  By Employee for Good Reason. At any time following the Initial Term,
Employee may terminate, without liability, the Period of Employment for Good
Reason provided Employee gives Employer sixty (60) days' advance written notice
of the reason for termination and his intent to terminate the Agreement.  During
the period, Employer shall have an opportunity to correct the condition
constituting Good Reason.  If the condition is remedied within the period,
Employee's notice to terminate shall be rescinded automatically; if not
remedied, termination of the Period of Employment shall become effective upon
expiration of the above notice period.  In the event, Employer shall pay
Employee all compensation due and owing through the last day actually worked.
Employee shall receive the severance benefits set forth in subparagraph 4(c)
rather than the severance benefits set forth in the subparagraph 4(e).  
     
(g)  By Employee for Good Reason Upon a Change of Control at anytime.  Employee
may terminate, without liability, the Period of Employment for Good Reason upon
a Change of Control (as defined below), provided Employee gives Employer sixty
(60) days' advance written notice of the reason for termination and his intent
to terminate the Agreement.  During the period, Employer shall have an
opportunity to correct the condition constituting Good Reason.  If the condition
is remedied within the period, Employee's notice to terminate shall be rescinded
automatically; if not remedied, termination of the Period of Employment shall
become effective upon expiration of the above notice period.  In the event,
Employer shall pay Employee all compensation due and owing through the last day
actually worked.  

Employer shall also have the option, in its complete discretion, to make
termination effective at any time prior to the end of the notice period,
provided that Employer pays Employee all compensation due and owing through the
balance of the notice period (not to exceed sixty (60) days).  Employee shall be
entitled to exercise his right to terminate the Agreement for Good Reason only
if he gives the required notice not more than forty-five (45) days after the
occurrence of the event that is the basis for the Good Reason.  If Employee
terminates the Period of Employment for Good Reason upon a Change of Control,
Employee shall receive the following:

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     (i)    A severance payment equal to twenty-four (24) month's of the
Employee's then base salary.  At the discretion of the Employer, the severance
payment may be made in the form of salary continuation over the equivalent pay
periods that the severance covers or in a lump sum payment.

     (ii)   A payment when due of the incentive bonus to which the Employee
would have been entitled prorated based on the number of months the Employee was
employed during the incentive bonus period.  

     (iii)  A payment equal to the annual incentive bonus payments received by
Employee, if any, for the previous two years, divided by two.

     (iv)   Payment of the Employee's share of health insurance premiums for a
period of up to twenty-four (24) months, or until Employee is eligible to
participate in another Employer's plan, whichever comes first, should Employee
elect to convert his/her health insurance benefits under COBRA.  

"Change of Control" shall mean the occurrence of any of the following events as
used herein, after the Effective Date:  (i) any "person" (as such term is used
in Sections 13 (d) and 14 (d) of the Securities Exchange Act of 1934, as
amended) other than Digital Microwave or its affiliates (a "Third Party") is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under said Act),
directly or indirectly, of securities of the Employer representing fifty percent
(50%) or more of the total voting power represented by the Employer's then
outstanding voting securities; (ii) the stockholders of the Employer approve a
merger or consolidation of the Employer with any other corporation that is a
Third Party, other than a merger or consolidation which would result in the
voting securities of the Employer outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Employer or
such surviving entity outstanding immediately after such merger or
consolidation; 

or (iii) the stockholders of the Employer approve a plan of complete 
liquidation or dissolution of the Employer or an agreement for the sale or 
disposition by the Employer of all or substantially all the Employer's assets 
to a Third Party. "Change of Control" shall also mean a change in the 
composition of the Board over a period of thirty-six (36) months or less such 
that a majority of the Board members (rounded up to the next whole number) 
ceases, by reason of one or more contested elections for Board membership, to 
be comprised of individuals who either (i) have been Board members 
continuously since the beginning of such period or (ii) have been elected or 
nominated for election as Board members during such period by at least a 
majority of the Board members described in clause (i) who were still in 
office at the time such election or nomination was approved by the Board.

     Termination shall be for "Good Reason" if:  (i) there is a material and
adverse change in Employee's position, duties, responsibilities, or status with
Employer; (ii) there is a reduction in Employee's salary then in effect, other
than a reduction comparable to reductions generally applicable to similarly
situated employees of Employer; (iii) there is a material reduction in
Employee's benefits, other than a reduction comparable to reductions generally
applicable to similarly situated employees of Employer; (iv) the Employer
involuntarily relocates the Employee; or (v) Employer materially breaches the
Agreement.

(h)  Termination Obligations.

   (i)   Employee agrees that all property, including, without limitation, all
equipment, tangible Proprietary Information (as defined below), documents,
books, records, reports, notes, contracts, lists, computer disks (and other
computer-generated files and data), and copies thereof, created on any medium
and furnished to, obtained by, or prepared by Employee in the course of or
incident to his employment, belongs to Employer and shall be returned promptly
to Employer upon termination of the Period of Employment.

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   (ii)   All benefits to which Employee is otherwise entitled shall cease upon
Employee's termination of the Period of Employment, unless explicitly continued
either under the Agreement or under any specific written policy or benefit plan
of Employer.

   (iii)  Upon termination of the Period of Employment, Employee shall be deemed
to have resigned from all offices and directorships then held with Employer or
any Affiliate.

   (iv)   The representations and warranties contained in the Agreement and
Employee's obligations under the Section 4(h) on Termination Obligations and
Section 5 on Proprietary Information shall survive the termination of the Period
of Employment and the expiration of the Agreement.

   (v)    Following any termination of the Period of Employment, Employee shall
fully cooperate with Employer in all matters relating to the winding up of
pending work on behalf of Employer and the orderly transfer of work to other
employees of Employer.  Employee shall also cooperate in the defense of any
action brought by any third party against Employer that relates in any way to
Employee's acts or omissions while employed by Employer.

5.  Proprietary Information.

(a)  Defined.  "Proprietary Information" is all information and any idea in
whatever form, tangible or intangible, pertaining in any manner to the business
of Employer, or any Affiliate, or its employees, clients, consultants, or
business associates, which was produced by any employee of Employer, or any
Affiliate, in the course of his or his employment or otherwise produced or
acquired by or on behalf of Employer, or any Affiliate.  All Proprietary
Information not generally known outside of Employer's organization, and all
Proprietary Information so known only through improper means, shall be deemed
"Confidential Information."  Without limiting the foregoing definition,
Proprietary and Confidential Information shall include, but not be limited to: 
(i) formulas, teaching and development techniques, processes, trade secrets,
computer programs, electronic codes, inventions, improvements, and research
projects;  (ii) information about costs, profits, markets, sales, and lists of
customers or clients;  (iii) business, marketing, and strategic plans; and (iv)
employee personnel files and compensation information.  Employee should consult
any Employer procedures instituted to identify and protect certain types of
Confidential Information, which are considered by Employer to be safeguards in
addition to the protection provided by the Agreement.  Nothing contained in
those procedures or in the Agreement is intended to limit the effect of the
other.

(b)  General Restrictions on Use.  During the Period of Employment, Employee
shall use Proprietary Information, and shall disclose Confidential Information,
only for the benefit of Employer and as is necessary to carry out his
responsibilities under the Agreement.  Following termination, Employee shall
neither, directly or indirectly, use any Proprietary Information nor disclose
any Confidential Information, except as expressly and specifically authorized in
writing by Employer.  The publication of any Proprietary Information through
literature or speeches must be approved in advance in writing by Employer.

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6.  Arbitration.

(a)  Arbitrable Claims.  All disputes between Employee (and his attorneys,
successors, and assigns) and Employer (and its Affiliates, shareholders,
directors, officers, employees, agents, successors, attorneys, and assigns)
relating in any manner whatsoever to the employment or termination of Employee,
including, without limitation, all disputes arising under the Agreement,
("Arbitrable Claims") shall be resolved by arbitration.  All persons and
entities specified in the preceding sentence (other than Employer and Employee)
shall be considered third-party beneficiaries of the rights and obligations
created by the Section on Arbitration.  Arbitrable Claims shall include, but are
not limited to, contract (express or implied) and tort claims of all kinds, as
well as all claims based on any federal, state, or local law, statute, or
regulation, excepting only claims under applicable workers' compensation law and
unemployment insurance claims.  By way of example and not in limitation of the
foregoing, Arbitrable Claims shall include any claims arising under Title VII of
the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Americans with Disabilities Act, and the California Fair Employment and Housing
Act, as well as any claims asserting wrongful termination, breach of contract,
breach of the covenant of good faith and fair dealing, negligent or intentional
infliction of emotional distress, negligent or intentional misrepresentation,
negligent or intentional interference with contract or prospective economic
advantage, defamation, invasion of privacy, and claims related to disability. 
Arbitration shall be final and binding upon the parties and shall be the
exclusive remedy for all Arbitrable Claims, except that Employer may, at its
option, seek injunctive relief and damages in court for any breach of Section 5
of the Agreement.  Subject to the foregoing sentence, THE PARTIES HEREBY WAIVE
ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO ARBITRABLE CLAIMS.

(b)  Procedure.  Arbitration of Arbitrable Claims shall be in accordance with
the Employment Dispute Resolution Rules of the American Arbitration Association
("AAA Employment Rules"), except as provided otherwise in the Agreement. 
Arbitration shall be initiated by providing written notice to the other party
with a statement of the claim(s) asserted, the facts upon which the claim(s) are
based, and the remedy sought.  The burden of proof in any arbitration shall be
allocated as provided by applicable law, unless otherwise specified in the
Agreement.  Either party may bring an action in court to compel arbitration
under the Agreement and to enforce an arbitration award.  Otherwise, neither
party shall initiate or prosecute any lawsuit or administrative action in any
way related to any Arbitrable Claim.  The Federal Arbitration Act shall govern
the interpretation and enforcement of the Section 6.

(c)  Arbitrator Selection and Authority.  All disputes involving Arbitrable
Claims shall be decided by a single arbitrator.  The arbitrator shall be
selected by mutual agreement of the parties within thirty (30) days of the
effective date of the notice initiating the arbitration.  If the parties cannot
agree on an arbitrator, then the complaining party shall notify the AAA and
request selection of an arbitrator in accordance with the AAA Employment Rules. 
The arbitrator shall have only such authority to award equitable relief,
damages, costs, and fees as a court would have for the particular claim(s)
asserted.  The fees of the arbitrator shall be split between both parties
equally.  The arbitrator shall have exclusive authority to resolve all
Arbitrable Claims, including, but not limited to, any claim that all or any part
of the Agreement is void or unenforceable.

(d)  Confidentiality.  All proceedings and all documents prepared in connection
with any Arbitrable Claim shall be confidential and, unless otherwise required
by law, the subject matter thereof shall not be disclosed to any person other
than the parties to the proceedings, their counsel, witnesses and experts, the
arbitrator, and, if involved, the court and court staff.  All documents filed
with the arbitrator or with a court shall be filed under seal.  The parties
shall stipulate to all arbitration and court orders necessary to effectuate
fully the provisions of the subsection concerning confidentiality.

(e)  Continuing Obligations.  The rights and obligations of Employee and
Employer set forth in the Section on Arbitration shall survive the termination
of Employee's employment and the expiration of the Agreement.

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7.  Notices.  

Any notice under the Agreement must be in writing and shall be effective upon
delivery by hand, upon facsimile transmission to the number provided below (if
one is provided), or three (3) business days after deposit in the United States
mail, postage prepaid, certified or registered, and addressed to Employer or to
Employee at the corresponding address below.  Employee shall be obligated to
notify Employer in writing of any change in his address.  Notice of change of
address shall be effective only when done in accordance with the Section.

Employer's Notice Address:

     Vice President, Personnel
     Digital Microwave Corporation
     170 Rose Orchard Way
     San Jose, California  95134
     Fax Phone No.:  (408)944-1701



Employee's Notice Address:

Jean Francois Grenon

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

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

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

8.  Action by Employer.  

All actions required or permitted to be taken under the Agreement by Employer,
including, without limitation, exercise of discretion, consents, waivers, and
amendments to the Agreement, shall be made and authorized only by the President
or by his or his representative specifically authorized to fulfill these
obligations under the Agreement.

9.  Integration.  

The Agreement is intended to be the final, complete, and exclusive statement of
the terms of Employee's employment by Employer.  The Agreement supersedes all
other prior and contemporaneous agreements and statements pertaining in any
manner to the employment of Employee, and it may not be contradicted by evidence
of any prior or contemporaneous statements or agreements.  To the extent that
the practices, policies, or procedures of Employer, now or in the future, apply
to Employee and are inconsistent with the terms of the Agreement, the provisions
of the Agreement shall control.

10.  Amendments; Waivers.  

The Agreement may not be modified, amended, or terminated except by an
instrument in writing, signed by each of the parties.  No failure to exercise
and no delay in exercising any right, remedy, or power under the Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right, remedy, or power under the Agreement preclude any other or further
exercise thereof, or the exercise of any other right, remedy, or power provided
herein or by law or in equity.

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11.  Assignment; Successors and Assigns.  

Employee agrees that he will not assign, sell, transfer, delegate, or otherwise
dispose of, whether voluntarily or involuntarily, or by operation of law, any
rights or obligations under the Agreement. Any such purported assignment,
transfer, or delegation shall be null and void.  Nothing in the Agreement shall
prevent the consolidation of Employer with, or its merger into, any other
entity, or the sale by Employer of all or substantially all of its assets, or
the otherwise lawful assignment by Employer of any rights or obligations under
the Agreement.  Subject to the foregoing, the Agreement shall be binding upon
and shall inure to the benefit of the parties and their respective heirs, legal
representatives, successors, and permitted assigns, and shall not benefit any
person or entity other than those specifically enumerated in the Agreement.

12.  Severability.  

If any provision of the Agreement, or its application to any person, place, or
circumstance, is held by an arbitrator or a court of competent jurisdiction to
be invalid, unenforceable, or void, such provision shall be enforced to the
greatest extent permitted by law, and the remainder of the Agreement and such
provision as applied to other persons, places, and circumstances shall remain in
full force and effect.

13.  Attorneys' Fees.  

In any legal action, arbitration, or other proceeding brought to enforce or
interpret the terms of the Agreement, the prevailing party shall be entitled to
recover reasonable attorneys' fees and costs.

14.  Governing Law.  The Agreement shall be governed by and construed in
accordance with the law of the State of California.

15.  Interpretation.  

The Agreement shall be construed as a whole, according to its fair meaning, and
not in favor of or against any party.  By way of example and not in limitation,
the Agreement shall not be construed in favor of the party receiving a benefit
nor against the party responsible for any particular language in the Agreement. 
Captions are used for reference purposes only and should be ignored in the
interpretation of the Agreement.

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<PAGE>

16.  Employee Acknowledgment.  

Employee acknowledges that he has had the opportunity to consult legal counsel
in regard to the Agreement, that he has read and understands the Agreement, that
he is fully aware of its legal effect, and that he has entered into it freely
and voluntarily and based on his own judgment and not on any representations or
promises other than those contained in the Agreement.



The parties have duly executed the Agreement as of the date first written above.

/s/ Jean-Francois Grenon 10/7/98
-----------------------------------
Jean Francois Grenon


   Digital Microwave Corporation


/s/ Charles D. Kissner
-----------------------------------
   By:    Charles D. Kissner
  Its:    Chairman and Chief Executive Officer


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