<PAGE>

                                                                   EXHIBIT 10.19

                   SUBORDINATED LOAN AND SECURITY AGREEMENT
                   ----------------------------------------


     THIS AGREEMENT (the "Agreement"), dated as of March 19, 1999, is entered
into by and between Airspan Communications Corporation, a Delaware corporation,
with its chief executive office, and principal place of business located at
%SeaPoint Ventures, 777 108/th/ Avenue NE, Ste. 10895, Bellevue, WA 98004 (the
"Borrower") and Comdisco, Inc., a Delaware corporation, with its principal place
of business located at 6111 North River Road, Rosemont, Illinois 60018 (the
"Lender" or sometimes, "Comdisco").  In consideration of the mutual agreements
contained herein, the parties hereto agree as follows:

                               R E C I T A L S:
                               ---------------

     WHEREAS, Borrower may borrow from Lender funds in the aggregate principal
amount not to exceed Three Million Seven Hundred Fifty Thousand and 00/100
Dollars ($3,750,000) in installments of One Million Two Hundred Fifty Thousand
and 00/100 Dollars ($1,250,000) each (as the same may from time to time be
amended, modified, supplemented or revised, the "Loan"), which would be
evidenced by Subordinated Promissory Note(s) executed by Borrower substantially
in the form hereto (as the same may from time to time be amended4 modified,
supplemented or restated the "Note(s)") (hereinafter each installment of
$1,250,000 shall be referred to as "Part I", "Part II" and "Part III");

     WHEREAS, Lender is willing to make the Loan on the terms and conditions set
forth in this Agreement, and

     WHEREAS, Lender and Borrower agree any Loan hereunder shall be subordinate
to Senior Debt (as defined herein) to the extent set forth in the Subordination
Agreement (as defined herein).

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein, Borrower and Lender hereby agree as follows:

SECTION 1.  DEFINITIONS

     Unless otherwise defined herein, the following capitalized terms shall have
the following meanings (such meanings being equally applicable to both the
singular and plural form of the terms defined);

     1.1  "Account" means any "account," as such term is defined in Section 9106
of the UCC, now owned or hereafter acquired by Borrower or in which Borrower now
holds or hereafter acquires any interest and, in any event, shall include,
without limitation, all accounts receivable, book debts and other forms of
obligations (other than forms of obligations evidenced
<PAGE>

by Chattel Paper, Documents or Instruments) now owned or hereafter received or
acquired by or belonging or owing to Borrower (including, without limitation,
under any trade name, style or division thereof) whether arising out of goods
sold or services rendered by Borrower or from any other transaction, whether or
not the same involves the sale of goods or services by Borrower (including,
without limitation, any such obligation which may be characterized as an account
or contract right under the UCC) and all of Borrower's rights in, to and under
all purchase orders or receipts now owned or hereafter acquired by it for goods
or services, and all of Borrower's rights to any goods represented by any of the
foregoing (including, without limitation, unpaid seller's rights of rescission,
replevin, reclamation and stoppage in transit and rights to returned, reclaimed
or repossessed goods), and all monies due or to become due to Borrower under all
purchase orders and contracts for the sale of goods or the performance of
services or both by Borrower (whether or not yet earned by performance on the
part of Borrower or in connection with any other transaction), now in existence
or hereafter occurring, including, without limitation, the right to receive the
proceeds of said purchase orders and contracts, and all collateral security and
guarantees of any kind given by any Person with respect to any of the foregoing.

     1.2  "Account Debtor" means any "account debtor," as such term is defined
in Section 9105(1)(a)of the UCC.

     1.3  "Advance" means each installment made by the Lender to Borrower
pursuant to the Loan to be evidenced by the Note(s) secured by the Collateral.

     1.4  "Advance Date" means the funding date of any Advance of the Loan..

     1.5.  "Advance Request" means the request by Borrower for an Advance under
the Loan, each to be substantially in the form of Exhibit C attached hereto, as
submitted by Borrower to Lender from time to time.

     1.6  "Chattel Paper" means any "chattel paper," as such term is defined in
Section 9105(1)(b) of the UCC, now owned or hereafter acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest.

     1.7  "Closing Date" means the date hereof.

     1.8  "Collateral" shall have the meaning assigned to such term in Section 3
of this Agreement.

     1.9  "Contracts" means all contracts, undertakings, franchise agreements or
other agreements (other than rights evidenced by Chattel Paper, Documents or
Instruments) in or under which Borrower may now or hereafter have any right,
title or interest, including, without limitation, with respect to an Account,
any agreement relating to the terms of payment or the terms of performance
thereof.

     1.10  "Copyrights" means all of the following now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest:  (i) all copyrights,

                                      -2-
<PAGE>

whether registered or unregistered, held pursuant to the laws of the United
States, any State thereof or of any other country; (ii) registrations,
applications and recordings in the United States Copyright Office or in any
similar office or agency of the United States, any state thereof or any other
country; (iii) any continuations, renewals or extensions thereof; and (iv) any
registrations to be issued in any pending applications.

     1.11  "Copyright License" means any written agreement granting any right to
use any Copyright or Copyright registration now owned or hereafter acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest.

     1.12  "Documents" means any "documents," as such term is defined in Section
9105(1)(f) of the UCC, now owned or hereafter acquired by Borrower or in which
Borrower now holds or hereafter acquires any interest.

     1.13  "Equipment" means any "equipment," as such term is defined in Section
9109(2) of the UCC, now or hereafter owned or acquired by Borrower or in which
Borrower now holds or hereafter acquires any interest and any and all additions,
substitutions and replacements of any of the foregoing, wherever located,
together with all attachments, components, parts, equipment and accessories
installed thereon or affixed thereto.

     1.14  "Excluded Agreements" means (i) any Warrant Agreement(s) executed
hereunder, and any Other warrants (including without limitation, the warrant
agreement dated as of March 19, 1999) to acquire, or agreements governing the
rights of the holders of, any equity security of Borrower, (ii) any stock of the
Borrower issued or purchased pursuant to the Warrant Agreement, and (iii) the
Global Master Rental Agreement dated as of March 19, 1999 between Borrower, as
lessee, and Lender, as lessor, including, without limitation, any Equipment
Schedules and Summary Equipment Schedules to the Master Lease Agreement executed
or delivered by Borrower pursuant thereto and any other modifications or
amendments thereof, whereby Borrower (as lessee) leases equipment, software, or
goods from Lender (as lessor) to Borrower (as lessee).

     1.15  "Facility Fee" means three quarters percent (.75%) of the principal
amount of the Loan due at the Closing Date.

     1.16  "Fixtures" means any "fixtures," as such term is defined in Section
9313(1)(a) of the UCC, now or hereafter owned or acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest and, now or
hereafter attached or affixed to or constituting a part of, or located in or
upon, real property wherever located, together with all right, title and
interest of Borrower in and to all extensions, improvements, betterments,
renewals, substitutes, and replacements of, and all additions and appurtenances
to any of the foregoing property, and all conversions of the security
constituted thereby, immediately upon any acquisition or release thereof or any
such conversion, as the case may be.

     1.17  "General Intangibles" means any "general intangibles," as such term
is defined in Section 9106 of the UCC, now owned or hereafter acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest and,
in any event, shall include, without

                                      -3-
<PAGE>

limitation, all right, title and interest which Borrower may now or hereafter
have in or under any contract, all customer lists, Copyrights, Trademarks,
Patents, rights to Intellectual Property, interests in partnerships, joint
ventures and other business associations, Licenses, permits, trade secrets,
proprietary or confidential information, inventions (whether or not patented or
patentable), technical information, procedures, designs, knowledge, know-how,
software, data bases, data, skill, expertise, recipes, experience, processes,
models, drawings, materials and records, goodwill (including, without
limitation, the goodwill associated with any Trademark, Trademark registration
or Trademark licensed under any Trademark License), claims in or under insurance
policies, including unearned premiums, uncertificated securities, cash and other
forms of money or currency, deposit accounts (including as defined in Section
9105(e) of the UCC), rights to sue for past, present and future infringement of
Copyrights, Trademarks and Patents, rights to receive tax refunds and other
payments and rights of indemnification.

     1.18  "Instruments" means any "instrument," as such term is defined in
Section 9105(1)(i) of the UCC, now owned or hereafter acquired by Borrower or in
which Borrower now holds or hereafter acquires any interest.

     1.19  "Intellectual Property" means all Copyrights, Trademarks, Patents,
trade secrets, source codes, customer lists, proprietary or confidential
information, inventions (whether or not patented or patentable), technical
information, procedures, designs, knowledge, know-how, software, data bases,
skill, expertise, experience, processes, models, drawings materials and records.

     1.20  "Inventory" means any "inventory," as such term is defined in Section
9109(4) of the UCC, wherever located, now or hereafter owned or acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest, and,
in any event, shall include, without limitation, all inventory, goods and other
personal property which are held by or on behalf of Borrower for sale or lease
or are furnished or are to be furnished under a contract of service or which
constitute raw materials, work in process or materials used or consumed or to be
used or consumed in Borrower's business, or the processing, packaging,
promotion, delivery or shipping of the same, and all furnished goods whether or
not such inventory is listed on any schedules, assignments or reports furnished
to Lender from time to time and whether or not the same is in transit or in the
constructive, actual or exclusive occupancy or possession of Borrower or is held
by Borrower or by others for Borrower's account, including, without limitation,
all goods covered by purchase orders and contracts with suppliers and all goods
billed and held by suppliers and all inventory which may be located on premises
of Borrower or of any carriers, forwarding agents, truckers, warehousemen,
vendors, selling agents or other persons.

     1.21  "License" means any Copyright License, Patent License, Trademark
License or other license of rights or interests now held or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest
and any renewals or extensions thereof.

     1.22  "Lien" means any mortgage, deed of trust, pledge, hypothecation,
assignment for security, security interest, encumbrance, levy, lien or charge of
any kind, whether voluntarily incurred or arising by operation of law or
otherwise, against any property, any conditional sale or other title retention
agreement, any lease in the nature of a security interest, and the tiling of any

                                      -4-
<PAGE>

financing statement (other than a precautionary financing statement with respect
to a lease that is not in the nature of a security interest) under the UCC or
comparable law of any jurisdiction.

     1.23  "Loan Documents" shall mean and include this Agreement, the Note(s),
and any other documents executed in connection with the Secured Obligations or
the transactions contemplated hereby, as the same may, from time to time be
amended, modified, supplemented or restated, provided, that the Loan Documents
shall not include any of the Excluded Agreements.

     1.24  "Material Adverse Effect" means a material adverse effect upon:  (i)
the business, operations, properties, assets or conditions (financial or
otherwise) of Borrower; or (ii) the ability of Borrower to perform, or of Lender
to enforce, the Secured Obligations.

     1.25  "Maturity Date" means as to Part I, December 1, 2000; and for Parts
II and Part III, September 1, 2003.

     1.26  "Note(s)" shall mean secured promissory notes substantially in the
forms attached hereto as Exhibits B-l, B-2 and B3, issued hereunder and as the
same may from time to time be amended, modified, supplemented or restated.

     1.27  "Patent License" means any written agreement granting any right with
respect to any invention on which a Patent is in existence now owned or
hereafter acquired by Borrower or in which Borrower now holds or hereafter
acquires any interest.

     1.28  "Patents" means all of the following now owned or hereafter acquired
by Borrower or in which Borrower now holds or hereafter acquires any interest:
(a) letters patent of, or rights corresponding thereto in, the United States or
any other county, all registrations and recordings thereof, and all applications
for letters patent of, or rights corresponding thereto in the United States or
any other country, including, without limitation, registrations, recordings and
applications in the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof or any other country;
(b) all reissues, continuations, continuations in-part or extensions thereof;
(c) all petty patents, divisionals, and patents of addition; and (d) all patents
to issue in any such applications.

     1.29  "Permitted Liens" means any and all of the following:  (i) liens in
favor of Lender, (ii) liens related to, or arising in connection with, Senior
Debt.

     1.30  "Proceeds" means "proceeds," as such term is defined in Section
9306(1) of the UCC and, in any event, shall include, without limitation, (a) any
and all Accounts, Chattel Paper, Instruments, cash or other forms of money or
currency or other proceeds payable to Borrower from time to time in respect of
the Collateral, (b) any and all proceeds of any insurance, indemnity, warranty
or guaranty payable to Borrower from time to time with respect to any of the
Collateral, (c) any and all payments (in any form whatsoever) made or due and
payable to Borrower from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any Person acting under color of
governmental authority), (d) any claim of Borrower against third

                                      -5-
<PAGE>

parties (i) for past, present or future infringement of any Copyright, Patent or
Patent License or (ii) for past, present or future infringement or dilution of
any Trademark or Trademark License or for injury to the goodwill associated with
any Trademark, Trademark registration or Trademark licensed under any Trademark
License and (e) any and all other amounts from time to time paid or payable
under or in connection with any of the Collateral.

     1.31  "Receivables" shall mean and include all of the Borrowers accounts,
instruments, documents, chattel paper and general intangibles whether secured or
unsecured, whether now existing or hereafter created or arising, and whether or
not specifically sold or assigned to Lender hereunder.

     1.32  "Secured Obligations" shall mean and include all principal, interest,
fees, costs, or other liabilities or obligations for monetary amounts owed by
Borrower to Lender, whether due or to become due, matured or unmatured,
liquidated or unliquidated, contingent or non-contingent, and all covenants and
duties regarding such amounts, of any kind of nature, present or future, arising
under this Agreement, the Note(s), or any of the other Loan Documents, whether
or not evidenced by any Note(s), Agreement or other instrument, as the same may
from time to time be amended, modified, supplemented or restated, provided, that
the Secured Obligations shall not include any indebtedness or obligations of
Borrower arising under or in connection with the Excluded Agreements.

     1.33  "Senior Creditor" means a bank, insurance company, pension fund, or
other institutional lender to be determined, or a syndication of such
institutional lenders that provides Senior Debt financing to Borrower; provided,
that Senior Creditor shall not include any officer, director, shareholder,
venture capital investor, or insider of Borrower, or any affiliate of the
foregoing persons, except upon the express written consent of Lender.

     1.34  "Senior Debt" means any and all indebtedness and obligations for
borrowed money (including, without limitation, principal, premium (if any),
interest, fees charges, expenses, costs, professional fees and expenses, and
reimbursement obligations) at any time owing by Borrower to Senior Creditor
under the Senior Loan Documents, including, but not limited to such amounts as
may accrue or be incurred before or after default or workout or the commencement
of any liquidation, dissolution, bankruptcy, receivership or reorganization by
or against Borrower provided, that Senior Debt shall not include the
indebtedness or obligations incurred after default or workout or the
commencement of any liquidation, dissolution, bankruptcy, receivership, or
reorganization case by or against Borrower.

     1.35  "Senior Loan Documents" means the loan agreement between Borrower and
Senior Creditor and any other agreement, security agreement, document,
promissory note, UCC financing statement, or instrument executed by Borrower in
favor of Senior Creditor pursuant to or in connection with the Senior Debt or
the loan agreement, as the same may from time to time be amended, modified,
supplemented, extended, renewed, restated or replaced.

     1.36  "Subordination Agreement" means the Subordination Agreement of even
date herewith, entered into between Borrower and Lender for the benefit of
Senior Creditor.

                                      -6-
<PAGE>

     1.37  "Trademark License" means any written agreement granting any right to
use any Trademark or Trademark registration now owned or hereafter acquired by
Borrower or in which Borrower now holds or hereafter acquires any interest.

     1.38  "Trademarks" means any of the following now owned or hereafter
acquired by Borrower or in which Borrower now holds or hereafter acquires any
interest:  (a) any and all trademarks, tradenames, corporate names, business
names, trade styles, service marks, Logos, other source or business identifiers,
prints and labels on which any of the foregoing have appeared or appear, designs
and general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and any applications in
connection therewith, including, without limitation, registrations, recordings
and applications in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof and (b) any reissues, extensions or
renewals thereof.

     1.39  "UCC" shall mean the Uniform Commercial Code as the same may, from
time to time, be in effect in the State of Illinois.  Unless otherwise defined
herein, terms that are defined in the UCC and used herein shall have the
meanings given to them in the UCC.

     1.40  "Warrant Agreement(s)" shall mean those agreements entered into in
connection with the Loan, substantially in the form attached hereto as Exhibit I
pursuant to which Borrower granted Lender the right to purchase that number of
shares of Series B Convertible Preferred Stock of Borrower equivalent to (A) (i)
in the case of Part I, $62,500.00; (ii) in the case of Part II, $87,500.00; and
(iii) in the case of Part I!1, $87,500.00, each such amount divided by the
Exercise Price (as defined below).  The "Exercise Price" shall be the closing
price per share of the last equity financing of Series B Preferred Stock of
Borrower.  The term of each Warrant Agreement shall expire upon the earlier of
seven (7) years after the date of issuance, or upon the effective date of an
initial public offering of Borrower's securities, provided Borrower's
underwriters request such exercise.

SECTION 2.  THE LOAN

     2.1  Subject to the terms and conditions set forth herein, Lender shall
lend to Borrower the aggregate original principal amount of Three Million Seven
Hundred Fifty Thousand Dollars ($3,750,000) (the "Loan") with interest at the
rate of six percent (6%).  Part I shall be due and payable in twenty-one (21)
monthly installments consisting of twenty (20) monthly installments of interest
only, followed by one final balloon payment due December 31, 2000, as specified
in the Note attached hereto as Exhibit B-1.  Parts II and III shall be due and
payable in fifty-four (54) monthly installments consisting of fifty-three (53)
monthly installments of interest only, followed by one final balloon payment due
September 30, 2003, as specified in the applicable Note(s) attached hereto as
Exhibits B-2 and B-3.  All payments due under the Note(s) shall be payable on
the first day of each month (each a "Payment Date").  If any payment under the
Note(s) shall be payable on a day other than a business day, then such payment
shall be due and payable on the next succeeding business day.

                                      -7-
<PAGE>

     Notwithstanding the foregoing, in the event one or more of Borrower's
guarantee beneficiaries reduce any portion of the required guarantee amounts
being supported by Lloyd's Bank as guarantor, Borrower shall prepay the
principal amount for the corresponding Note(s) by the same amount as of the next
Payment Date for such Note(s) by paying such principal amount and accrued and
unpaid interest thereon.

     2.2  Borrower shall have the option to prepay the Note(s), in whole or in
part, at any time by paying the principal amount thereon together with all
accrued and unpaid interest with respect to such principal amount, as of the
date of such prepayment, without premium or penalty.

     2.3  (a)  Notwithstanding any provision in this Agreement, the Note(s), or
any other Loan Document, it is not the parties' intent to contract for, charge
or receive interest at a rate that is greater than the maximum rate permissible
by law which a court of competent jurisdiction shall deem applicable hereto
(which under the laws of the State of Illinois shall be deemed to be the laws
relating to permissible rates of interest on commercial loans) (the "Maximum
Rate").  If the Borrower actually pays Lender an amount of interest, chargeable
on the total aggregate principal Secured Obligations of Borrower under this
Agreement and the Note(s) (as said rate is calculated over a period of time from
the date of this Agreement through the end of time that any principal is
outstanding on the Note(s)), which amount of interest exceeds interest
calculated at the Maximum Rate on said principal chargeable over said period of
time, then such excess interest actually paid by Borrower shall be applied
first, to the payment of principal outstanding on the Note(s); second, after all
principal is repaid, to the payment of Lender's out of pocket costs, expenses,
and professional fees which are owed by Borrower to Lender under this Agreement
or the Loan Documents; and third, after all principal, costs, expenses, and
professional fees owed by Borrower to Lender are repaid, the excess (if any)
shall be refunded to Borrower, and the effective rate of interest will be
automatically reduced to the Maximum Rate.

          (b)  In the event any interest is not paid when due hereunder,
delinquent interest shall be added to principal and shall bear interest on
interest, compounded at the rate set forth in Section 2.1.

          (c)  Upon and during the continuation of an Event of Default
hereunder, all Secured Obligations, including principal, interest, compounded
interest, and professional fees, shall bear interest at a rate per annum equal
to the rate set forth in Section 2.1, plus five percent (5%) per annum ("Default
Rate").

     2.4  If the Borrower has not repaid the outstanding principal amount under
the Loan in its entirety by the Maturity Date unless the Maturity Date will have
otherwise been changed (as defined in the applicable Note(s)), then for each
additional month, or portion thereof, thereafter that the outstanding principal
is not paid, Lender shall have the right to purchase from the Borrower, at the
Exercise Price (adjusted, as set forth and defined in the Warrant Agreement), an
additional number of shares of Preferred Stock which number shall be determined
by (i) multiplying the outstanding principal amount which is due but unpaid by
 .5% and (ii) dividing the product thereof by the Exercise Price.

                                      -8-
<PAGE>

SECTION 3.  SECURITY INTEREST

     As security for the prompt, complete and indefeasible payment when due
(whether at stated payment dates or otherwise) of all the Secured Obligations
and in order to induce Lender to make the Loan upon the terms and subject to the
conditions of the Note(s), Borrower hereby assigns, conveys, mortgages, pledges,
hypothecates and transfers to Lender for security purposes only, and hereby
grants to Lender a security interest in, all of Borrower's right, title and
interest in, to and under each of the following (all of which being hereinafter
collectively called the "Collateral"):

     (a)  All Receivables;

     (b)  All Equipment;

     (c)  All Fixtures;

     (d)  All General Intangibles;

     (e)  All Inventory;

     (f)  All other goods and personal property of Borrower whether tangible or
          intangible and whether now or hereafter owned or existing, leased,
          consigned by or to, or acquired by, Borrower and wherever located; and

     (g)  To the extent not otherwise included, all Proceeds of each of the
          foregoing and all accessions to, substitutions and replacements for,
          and rents, profits and products of each of the foregoing.

SECTION 4.  REPRESENTATIONS AND WARRANTIES OF BORROWER

The Borrower represents, warrants and agrees that:

     4.1  Borrower owns all right title and interest in and to the Collateral,
free of all liens, security interests, encumbrances and claims whatsoever,
except for Permitted Liens.

     4.2  Borrower has the full power and authority to, and does hereby grant
and convey to the Lender, a perfected security interest in the Collateral as
security for the Secured Obligations, free of all liens, security interests,
encumbrances and claims, other than Permitted Liens and shall execute such
Uniform Commercial Code financing statements in connection herewith as the
Lender may reasonably request.  Except as set forth herein, no other lien,
security interest, adverse claim or encumbrance has been created by Borrower or
is.  known by Borrower to exist with respect to any Collateral.

     4.3  Borrower is a corporation duly organized, legally existing and in good
standing under the laws of the State of Delaware, and is duly qualified as a
foreign corporation in all

                                      -9-
<PAGE>

jurisdictions in which the nature of its business or location of its properties
require such qualifications and where the failure to be qualified would have a
Material Adverse Effect.

     4.4  Borrower's execution, delivery and performance of the Note(s), this
Agreement, all financing statements, all other Loan Documents required to be
delivered or executed in connection herewith, and the Warrant Agreement(s) have
been duly authorized by all necessary corporate action of Borrower, the
individual or individuals executing the Loan Documents and the Warrant
Agreement(s) were duly authorized to do so; and the Loan Documents and the
Warrant Agreement(s) constitute legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization or other similar laws
generally affecting the enforcement of the rights of creditors.

     4.5  This Agreement, the other Loan Documents and the Warrant Agreement(s)
do not and will not violate any provisions of Borrower's [Articles/Certificate
of Incorporation], bylaws or any contract, agreement, law, regulation, order,
injunction, judgment, decree or writ to which the Borrower is subject, or result
in the creation or imposition of any lien, security interest or other
encumbrance upon the Collateral, other than those created by this Agreement.

     4.6  The execution, delivery and performance of this Agreement, the other
Loan Documents and the Warrant Agreement(s) do not require the consent or
approval of any other person or entity including, without limitation, any
regulatory authority or governmental body of the United States or any state
thereof or any political subdivision of the United States or any state thereof.

     4.7  No event which has had or could reasonably be expected to have a
Material Adverse Effect has occurred and is continuing.

     4.8  No fact or condition exists that would (or would, with the passage of
time, the giving of notice, or both) constitute a default under the Loan
Agreement between Borrower and Senior Creditor.

     4.9  Borrower has filed and will file all tax returns, federal, state and
local, which it is required to file and has duly paid or fully reserved for all
taxes or installments thereof (including any interest or penalties) as and when
due, which have or may become due pursuant to such returns or pursuant to any
assessment received by Borrower for the three (3) years preceding the Closing
Date, if any (including any taxes being contested in good faith and by
appropriate proceedings).

SECTION 5.  INSURANCE

     5.1  So long as there are any Secured Obligations outstanding, Borrower
shall cause to be carried and maintained comprehensive general liability
insurance against risks customarily insured against in Borrower's line of
business.  Such risks shall include, without limitation, the risks of death,
bodily injury and property damage.  So long as there are any Secured Obligations
outstanding, Borrower shall also cause to be carried and maintained insurance
upon the

                                      -10-
<PAGE>

Collateral and Borrower's business, covering casualty, hazard and such other
property risks customarily insured against in Borrower's line of business.
Borrower shall deliver to Lender lender's loss payable endorsements (Form BFU
438 or equivalent) naming Lender as loss payee or additional insured, as
appropriate. Borrower shall use commercially reasonable efforts to cause all
policies evidencing such insurance to provide for at least thirty (30) days
prior written notice by the underwriter or insurance company to Lender in the
event of cancellation or expiration. Such policies shall be issued by such
insurers and in such amounts as are reasonably acceptable to Lender.

     5.2  Borrower shall and does hereby indemnify and hold Lender, its agents
and shareholders harmless from and against any and all claims, costs, expenses,
damages and liabilities (including, without limitation, such claims, costs,
expenses, damages and liabilities based on liability in tort, including without
limitation, strict liability in tort), including reasonable attorneys' fees,
arising out of the disposition or utilization of the Collateral, other than
claims arising at or caused by Lender's gross negligence or willful misconduct.

SECTION 6.  COVENANTS OF BORROWER

     Borrower covenants and agrees as follows at all times while any of the
Secured Obligations remain outstanding:

     6.1  Borrower shall furnish to Lender the financial statements listed
hereinafter, each prepared in accordance with generally accepted accounting
principles consistently applied (the "Financial Statements"):

          (a)  as soon as practicable (and in any event within forty five
     (45days) after the end of each quarter, unaudited interim financial
     statements as of the end of such quarter (prepared on a consolidated and
     consolidating basis, if applicable), including balance sheet and related
     statements of income and cash flows accompanied by a report detailing any
     material contingencies (including the commencement of any material
     litigation by or against Borrower) or any other occurrence that could
     reasonably be expected to have a Material Adverse Effect, all certified by
     Borrower's Chief Executive Officer or Chief Financial Officer to be true
     and correct;

          (b)  as soon as practicable (and in any event within one hundred fifty
     (150 days) after the end of each fiscal year (180 days for Year End 1998
     financials), unqualified audited financial statements as of the end of such
     year (prepared on a consolidated and consolidating basis, if applicable),
     including balance sheet and related statements of income and cash flows,
     and setting forth in comparative form the corresponding figures for the
     preceding fiscal year, certified by a firm of independent certified public
     accountants selected by Borrower and reasonably acceptable to Lender,
     accompanied by any management report from such accountants;

          (c)  promptly after the sending or filing thereof, as the case may be,
     copies of any proxy statements, financial statements or reports which
     Borrower has made available to its shareholders and copies of any regular,
     periodic and special reports or registration

                                      -11-
<PAGE>

     statements which Borrower files with the Securities and Exchange Commission
     or any governmental authority which may be substituted therefor, or any
     national securities exchange; and

          (d)  promptly, any additional information, financial or otherwise
     (including, but not limited, to tax returns and names of principal
     creditors) as Lender reasonably believes necessary to evaluate Borrower's
     continuing ability to meet its financial obligations.

     6.2  Borrower shall permit any authorized representative of Lender and its
attorneys and accountants on reasonable notice to inspect, examine and make
copies and abstracts of the books of account and records of Borrower at
reasonable times during normal business hours.  In addition, such representative
of Lender and its attorneys and accountants shall have the right to meet with
management and officers of the Company to discuss such books of account and
records.

     6.3  Borrower will from time to time execute, deliver and file, alone or
with Lender, any financing statements, security agreements or other documents;
procure any instruments or documents as may be reasonably requested by Lender;
and take all further action that may be necessary or desirable, or that Lender
may reasonably request, to confirm, perfect, preserve and protect the security
interests intended to be granted hereby, and in addition, and for such purposes
only, Borrower hereby authorizes Lender to execute and deliver on behalf of
Borrower and to file such financing statements, security agreement and other
documents without the signature of Borrower either in Lender's name or in the
name of Borrower as agent and attorney-in-fact for Borrower.  The parties agree
that a carbon, photographic or other reproduction of this Agreement shall be
sufficient as a financing statement and may be filed in any appropriate office
in lieu thereof.

     6.4  Borrower shall protect and defend Borrower's title as well as the
interest of the Lender against all persons claiming any interest adverse to
Borrower or Lender and shall at all times keep the Collateral free and clear
from any legal process, liens or encumbrances whatsoever (except any placed
thereon by Lender) and shall give Lender immediate written notice thereof.

     6.5  Without Lender's prior written consent, Borrower shall not (a) grant
any material extension of the time of payment of any of the Receivables, (b) to
any material extent, compromise, compound or settle the same for less than the
full amount thereof, (c) release, wholly or partly, any Person liable for the
payment thereof, or allow any credit or discount whatsoever thereon other than
trade discounts granted in the ordinary course of business of Borrower except to
the extent any extension of time or compromise related to payment of receivable
is in the ordinary course of Borrower's dealings with its customers.

     6.6  Borrower shall maintain and protect its properties, assets and
facilities, including without limitation, its Equipment and Fixtures, in good
order and working repair and condition (taking into consideration ordinary wear
and tear) and from time to time make or cause to be

                                      -12-
<PAGE>

made all necessary and proper repairs, renewals and replacements thereto and
shall competently manage and care for its property in accordance with prudent
industry practices.

     6.7  Borrower shall not merge with and into any other entity; or sell or
convey all or substantially all of its assets or stock to any other person or
entity without notifying Lender a minimum of thirty (30) days prior to the
closing date and requesting Lender's consent to the assignment of all of
Borrower's Secured Obligations hereunder to the successor entity in form and
substance satisfactory to Lender.  In the event Lender does not consent to such
assignment the parties agree Borrower shall prepay the Loan in accordance with
Section 2.2 hereof.  Lender hereby consents to any merger in which the acquiring
entity has a Moody's Bond Rating of BA3 or better or a commercially acceptable
equivalent measure of creditworthiness as reasonably determined by Comdisco.

     6.8  Borrower shall not, without the prior written consent of Lender, such
consent not to be unreasonably withheld, declare or pay any cash dividend or
make a distribution on any class of stock, other than pursuant to employee
repurchase plans upon an employee's death or termination of employment or
transfer, sell, lease, lend or in any other manner convey any equitable,
beneficial or legal interest in any material portion of the assets of Borrower
(except inventory sold in the normal course of business).

     6.9  Upon the reasonable request of Lender, Borrower shall, during business
hours, make the Inventory and Equipment available to Lender for inspection at
the place where it is normally located and shall make Borrower's log and
maintenance records pertaining' to the Inventory and Equipment available to
Lender for inspection.  Borrower shall take all action necessary to maintain
such logs and maintenance records in a correct and complete fashion.

     6.10  Borrower covenants and agrees to pay when due, all taxes, fees or
other charges of any nature whatsoever (together with any related interest or
penalties) now or hereafter imposed or assessed against Borrower or the
Collateral or upon Borrower's ownership, possession, use, operation or
disposition thereof or upon Borrower's rents, receipts or earnings arising
therefrom.  Borrower shall file on or before the due date therefor all personal
property tax returns in respect of the Collateral.  Notwithstanding the
foregoing, Borrower may contest, in good faith and by appropriate proceedings,
taxes for which Borrower maintains adequate reserves therefor.

     6.11  Borrower shall not relocate any item of the Collateral (other than
sale of inventory in the ordinary course of business) except with written notice
to the Lender.  Borrower shall cause to be filed and/or delivered to the Lender
all Uniform Commercial Code financing statements, certificates or other
documents or instruments necessary to continue in effect the perfected security
interest of the Lender in the Collateral, and (b) have given the Lender annual
written notice of such relocations.

SECTION 7.  CONDITIONS PRECEDENT TO LOAN

     The obligation of Lender to fund the Loan on each Advance Date shall be
subject to Lender's discretion and satisfactory completion of its due diligence
and approval process, and

                                      -13-
<PAGE>

satisfaction by Borrower or waiver by Lender, in Lender's sole discretion, of
the following conditions:

     7.1  The Advance Date for any installment shall occur on or before April 1,
1999.

     7.2  Document Delivery.  Borrower, on or prior to the Closing Date, shall
have delivered to Lender the following:

          (a)  executed originals of the Agreement, the Note(s), and any
     documents reasonably required by Lender to effectuate the liens of Lender,
     with respect to all Collateral;

          (b)  certified copy of resolutions of Borrower's board of directors
     evidencing approval of the borrowing and other transactions evidenced by
     the Loan Documents and the Warrant Agreement(s);

          (c)  certified copies of the [Articles/Certificate of Incorporation]
     and the Bylaws, as amended through the Closing Date, of Borrower;

          (d)  certificate of good standing for Borrower from its state of
     incorporation and similar certificates from all other jurisdictions in
     which it does business and where the failure to be qualified would have a
     Material Adverse Effect;

          (e)  payment of the Facility Fee (which may instead be deducted from
     first Advance; and

          (f)  copies of Borrower's guaranties with Lloyd's Bank.

     7.3  Advance Request.  Borrower shall:

          (a)  deliver to Lender, at least five (5) business day prior to the
     Advance Date, written notice in the form of an Advance Request, or as
     otherwise specified by Lender from time to time, specifying the date and
     amount of such Advance.

          (b)  deliver executed original Note(s) and Warrant Agreements as set
     forth in Section 2, as applicable; and

          (c)  such other documents as Lender may reasonably request.

     7.4  Perfection of Security Interests.  Borrower shall have taken or caused
to be taken such actions requested by Lender to grant Lender a first priority
perfected security interest in the Collateral, subject only to Permitted Liens.
Such actions shall include, without limitation, the delivery to Lender of all
appropriate financing statements, executed by Borrower, as to the Collateral
granted by Borrower for all jurisdictions as may be necessary or desirable to
perfect the security interest of Lender in such Collateral.

                                      -14-
<PAGE>

     7.5  Absence of Events of Defaults.  As of the Closing Date or the Advance
Date, no fact or condition exists that would (or would, with the passage of
time, the giving of notice, or both) constitute an Event of Default under this
Agreement or any of the Loan Documents and no fact or condition exists that
would (or would, with the passage of time, the giving of notice, or both)
constitute a default under the Senior Loan Documents between Borrower and Senior
Creditor.

     7.6  Material Adverse Effect.  As of the Closing Date or the Advance Date,
no event which has had or could reasonably be expected to have a Material
Adverse Effect has occurred and is continuing.

SECTION 8.  DEFAULT

     The occurrence of any one or more of the following events (herein called
"Events of Default") shall constitute a default hereunder and under the Note(s)
and other Loan Documents:

     8.1  Borrower defaults in the payment of any principal, interest or other
Secured Obligation involving the payment of money under this Agreement, the
Note(s) or any of the other Loan Documents, and such default continues for more
than five (5) days after the due date thereof; or

     8.2  Borrower defaults in the performance of any other covenant or Secured
Obligation of Borrower hereunder or under the Note(s) or any of the other Loan
Documents, and such default continues for more than twenty (20) days after
Lender has given notice of such default to Borrower provided, in the event
Borrower is making diligent efforts to cure such default the cure period may be
extended.

     8.3  Any representation or warranty made herein by Borrower shall prove to
have been false or misleading in any material respect; or

     8.4  Borrower shall make an assignment for the benefit of creditors, or
shall admit in writing its inability to pay its debts as they become due, or
shall file a voluntary petition in bankruptcy, or shall file any petition or
answer seeking for itself any reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation pertinent to such circumstances, or shall seek
or consent to or acquiesce in the appointment of any trustee, receiver, or
liquidator of Borrower or of all or any substantial part (33-1/3% or more) of
the properties of Borrower; or Borrower or its directors or majority
shareholders shall take any action initiating the dissolution or liquidation of
Borrower; or

     8.5  Sixty (60) days shall have expired after the commencement of an action
by or against Borrower seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any present or
future statute, law or regulation, without such action being dismissed or all
orders or proceedings thereunder affecting the operations or the business of
Borrower being stayed; or a stay of any such order or proceedings shall
thereafter be set aside and the action setting it aside shall not be timely
appealed; or Borrower shall file any

                                      -15-
<PAGE>

answer admitting or not contesting the material allegations of a petition filed
against Borrower in any such proceedings; or the court in which such proceedings
are pending shall enter a decree or order granting the relief sought in any such
proceedings; or

     8.6  Sixty (60) days shall have expired after the appointment, without the
consent or acquiescence of Borrower, of any trustee, receiver or liquidator of
Borrower or of all or any substantial Part of the properties of Borrower without
such appointment being vacated; or

     8.7  The default by Borrower under any Excluded Agreement(s), any other
promissory note or agreement for borrowed money, or any other agreement between
Borrower and Lender; or

     8.8  The occurrence of any default under any lease or other agreement or
obligation of Borrower involving an amount in excess of $200,000.00 or having a
Material Adverse Effect; or the entry of any judgment against Borrower involving
an award in excess of $200,000.00 that would have a Material Adverse Effect,
that has not been bonded or stayed on appeal within thirty (30)days; or

     8.9  The occurrence of any material default under the Senior Loan
Documents.

SECTION 9.  REMEDIES

     Upon the occurrence of any one or more Events of Default, Lender, at its
option, may declare the Note(s) and all of the other Secured Obligations to be
accelerated and immediately due and payable (provided, that upon the occurrence
of an Event of Default of the type described in Sections 8.4 or 8.5, the Note(s)
and all of the other Secured Obligations shall automatically be accelerated and
made due and payable without any further act), whereupon the unpaid principal of
and accrued interest on such Note(s) and all other outstanding Secured
Obligations shall become immediately due and payable, and shall thereafter bear
interest at the Default Rate set forth in, and calculated according to, Section
2.3 (c) of this Agreement.  Lender may exercise all rights and remedies with
respect to the Collateral under the Loan Documents or otherwise available to it
under applicable law, including the right to release, hold or otherwise dispose
of all or any Part of the Collateral and the right to occupy, utilize, process
and commingle the Collateral.

     Upon the happening and during the continuance of any Event of Default,
Lender may then, or at any time thereafter and from time to time, apply,
collect, sell in one or more sales, lease or otherwise dispose of, any or all of
the Collateral, in its then condition or following any commercially reasonable
preparation or processing, in such order as Lender may elect, and any such sale
may be made either at public or private sale at its place of business or
elsewhere.  Borrower agrees that any such public or private sale may occur upon
five (5) calendar days' prior written notice to Borrower.  Lender may require
Borrower to assemble the Collateral and make it available to Lender at a place
designated by Lender which is reasonably convenient to Lender and Borrower.  The
proceeds of any sale, disposition or other realization upon all or any Part of
the Collateral shall be distributed by Lender in the following order of
priorities:

                                      -16-
<PAGE>

     .  First, to Lender in an amount sufficient to pay in full Lender's
        costs and professionals' and advisors' fees and expenses;

     .  Second, to Lender in an amount equal to the then unpaid amount of the
        Secured Obligations in such order and priority as Lender may choose in
        its sole discretion; and

     .  Finally, upon payment in full of all of the Secured Obligations, to
        Borrower or its representatives or as a court of competent jurisdiction
        may direct.

     Lender shall .be deemed to have acted reasonably in the custody,
preservation and disposition of any of the Collateral if it complies with the
obligations of a secured party under Section 9207 of the UCC.

     Lender's rights and remedies hereunder are subject to the terms of the
Subordination Agreement.

SECTION 10.  MISCELLANEOUS

     10.1  Continuation of Security Interest.  This is a continuing Agreement
and the grant of a security interest hereunder shall remain in full force and
effect and all the rights, powers and remedies of Lender hereunder shall
continue to exist until the Secured Obligations are paid in full as the same
become due and payable and until Lender has executed a written termination
statement (which Lender shall execute within a reasonable time after full
payment of the Secured Obligations hereunder), reassigning to Borrower, without
recourse, the Collateral and all rights conveyed hereby and returning possession
of the Collateral to Borrower.  The rights, powers and remedies of Lender
hereunder shall be in addition to all rights, powers and remedies given by
statute or rule of law and are cumulative.  The exercise of any one or more of
the rights, powers and remedies provided herein shall not be construed as a
waiver of or election of remedies with respect to any other rights, powers and
remedies of Lender.

     10.2  Severability.  Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under such law, such provision shall be ineffective only to the extent
and duration of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     10.3  Notice.  Except as otherwise provided herein, all notices and service
of process required, contemplated, or permitted hereunder or with respect to the
subject matter hereof shall be in writing, and shall be deemed to have been
validly served, given or delivered upon the earlier of:  (i) the first business
day after transmission by facsimile or hand delivery or deposit with an
overnight express service or overnight mail delivery service; or (ii) the third
calendar day after deposit in the United States mails, with proper first class
postage prepaid, and shall be addressed to the party to be notified as follows:

                                      -17-
<PAGE>

          (a)  If to Lender:
               ------------

                   COMDISCO, INC.
                   Legal Department
                   Attention:  General Counsel
                   6111 North River Road
                   Rosemont, IL  60018
                   Facsimile:  (847) 518-5088

               With a copy to:
               --------------

                   COMDISCO, INC./COMDISCO VENTURES
                   6111 North River Road
                   Rosemont, IL  60018
                   Facsimile:  (847) 518-5465

               If to Borrower:
               --------------

                   AIRSPAN COMMUNICATIONS CORPORATION
                   Attention:  David Brant
                   %SeaPoint Ventures
                   777 108th Ave. NE, Suite 10895
                   Bellevue, WA  98004
                   Facsimile:  (425) 455-1093

or to such other address as each party may designate for itself by like notice.

     10.4  Entire Agreement; Amendments.  This Agreement, the Note(s), and the
other Loan Documents, and the Warrant Agreement(s) constitute the entire
agreement and understanding of the parties hereto in respect of the subject
matter hereof and thereof, and supersede and replace in their entirety any prior
proposals, term sheets, letters, negotiations or other documents or agreements,
whether written or oral, with respect to the subject matter hereof or thereof
(including, without limitation, Lender's proposal letter dated December 22,
1998, all of which are merged herein and therein.  None of the terms of this
Agreement, the Note(s), any of the other Loan Documents or Warrant Agreement(s)
may be amended except by an instrument executed by each of the parties hereto.

     10.5  Headings.  The various headings in this Agreement are inserted for
convenience only and shall not affect the meaning or interpretation of this
Agreement or any provisions hereof.

     10.6  No Waiver.  The powers conferred upon Lender by this Agreement are
solely to protect its interest in the Collateral and shall not impose any duty
upon Lender to exercise any such powers.  No omission, or delay, by Lender at
any time to enforce any right or remedy reserved to it, or to require
performance of any of the terms, covenants or provisions hereof by

                                      -18-
<PAGE>

Borrower at any time designated, shall be a waiver of any such right or remedy
to which Lender is entitled, nor shall it in any way affect the right of Lender
to enforce such provisions thereafter.

     10.7  Survival.  All agreements, representations and warranties contained
in this Agreement, the Note(s), the other Loan Documents and the Warrant
Agreement(s) or in any document delivered pursuant hereto or thereto shall be
for the benefit of Lender and shall survive the execution and delivery of this
Agreement and the expiration or other termination of this Agreement.

     10.8  Successor and Assigns.  The provisions of this Agreement, the other
Loan Documents and the Warrant Agreement(s) shall inure to the benefit of and be
binding on Borrower and its permitted assigns (if any).  Borrower shall not
assign its obligations under this Agreement, the Note(s), any of the other Loan
Documents or the Warrant Agreement(s), without Lender's express written consent,
and any such attempted assignment shall be void and of no effect.  Lender may
assign, transfer, or endorse its rights hereunder and under the other Loan
Documents or Warrant Agreement(s) without prior notice to Borrower, and all of
such rights shall inure to the benefit of Lender's successors and assigns.

     10.9 Further Indemnification.  Borrower agrees to pay, and to save Lender
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all excise, sales or other similar taxes which may be
payable or determined to be payable with respect to any of the Collateral or in
connection with any of the transactions contemplated by this Agreement.

     10.10  Governing Law.  This Agreement, the Note(s), the other Loan
Documents and the Warrant Agreement(s) have been negotiated and delivered to
Lender in the State of Illinois, and shall not become effective until accepted
by Lender in the State of Illinois.  Payment to Lender by Borrower of the
Secured Obligations is due in the State of Illinois.  This Agreement, the
Note(s), the other Loan Documents and the Warrant Agreement(s) shall be governed
by, and construed and enforced in accordance with, the laws of the State of
Illinois, excluding conflict of laws principles that would cause the application
of laws of any other jurisdiction.

     10.11  Consent To Jurisdiction and Venue.  All judicial proceedings arising
in or under or related to this Agreement, the Note(s), any of the other Loan
Documents or Warrant Agreement(s) may be brought in any state or federal court
of competent jurisdiction located in the State of Illinois.  By execution and
delivery of this Agreement, each party hereto generally and unconditionally:
(a) consents to personal jurisdiction in Cook County, State of Illinois; (b)
waives any objection as to jurisdiction or venue in Cook County, State of
Illinois; (c) agrees not to assert any defense based on lack of jurisdiction or
venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Agreement, the Note(s), the
other Loan Documents or Warrant Agreement(s).  Service of process on any party
hereto in any action arising out of or relating to this agreement shall be
effective if given in accordance with the requirements for notice set forth in
Section 10.3, above and shall be deemed effective and received as set forth in
Section 10.3, above.  Nothing herein shall affect the right to serve process in
any other manner permitted by law or shall limit the right of either party to
bring proceedings in the courts of any other jurisdiction.

                                      -19-
<PAGE>

     10.12  Mutual Waiver Of Jury Trial.  Because disputes arising in connection
with complex financial transactions are most quickly and economically resolved
by an experienced and expert person and the parties wish applicable state and
federal laws to apply (rather than arbitration rules), the parties desire that
their disputes be resolved by a judge applying such applicable laws.  EACH OF
BORROWER AND LENDER SPECIFICALLY WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY
OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR
ANY OTHER CLAIM (COLLECTIVELY, "CLAIMS") ASSERTED BY BORROWER AGAINST LENDER OR
ITS ASSIGNEE AND/OR BY LENDER OR ITS ASSIGNEE AGAINST BORROWER.  This waiver
extends to all such Claims, including, without limitation, Claims which involve
persons or entities other than Borrower and Lender; Claims which arise out of or
are in any way connected to the relationship between Borrower and Lender; and
any Claims for damages, breach of contract arising out of this Agreement, any
other Loan Document or any of the Excluded Agreements, specific performance, or
any equitable or legal relief of any kind.

     10.13  Confidentiality.  Lender acknowledges that certain items of
Collateral, including, but not limited to trade secrets, source codes, customer
lists and certain other items of Intellectual Property, and any Financial
Statements provided pursuant to Section 6 hereof, constitute proprietary and
confidential information of the Borrower (the "Confidential Information").
Accordingly, Lender agrees that any Confidential Information it may obtain in
the course of acquiring, perfecting or foreclosing on the Collateral or
otherwise provided under this Agreement, provided such Confidential Information
is marked as confidential by Borrower at the time of disclosure, shall be
received in the strictest confidence and will not be disclosed to any other
person or entity in any manner whatsoever, in whole or in part, without the
prior written consent of the Borrower, unless and until Lender has acquired
indefeasible title thereto.

     10.14  Counterparts.  This Agreement and any amendments, waivers, consents
or supplements hereto may be executed in any number of counterparts, and by
different parties hereto in separate counterparts, each of which when so
delivered shall be deemed an original, but all of which counterparts shall
constitute but one and the same instrument.

                                      -20-
<PAGE>

     IN WITNESS WHEREOF, the Borrower and the Lender have duly executed and
delivered this Agreement as of the day and year first above written.

BORROWER:                                   AIRSPAN COMMUNICATIONS CORPORATION

                                            Signature:  /s/ Eric Stonestrom
                                                      -------------------------
                                            Print Name:  Eric Stonestrom
                                            Title:  President and CEO

Accepted in Rosemont, Illinois:

LENDER:                                     COMDISCO, INC.

                                            Signature:
                                                      -------------------------
                                            Print Name:
                                                       ------------------------
                                            Title:
                                                  -----------------------------

                                      -21-
<PAGE>

                                    Part I
                         SUBORDINATED PROMISSORY NOTE

$1,250,000                                                 Date:  March 29, 1999
                                                           Due: December 1, 2000

FOR VALUE RECEIVED, Airspan Communications Corporation, a Delaware corporation
(the "Borrower") hereby promises to pay to the order of Comdisco, Inc., a
Delaware corporation (the "Lender") at P.O. Box 91744, Chicago, IL 60693 or such
other place of payment as the holder of this Secured Promissory Note (this
"Note") may specify from time to time in writing, in lawful money of the United
States of America, the principal amount of One Million Two Hundred Fifty
Thousand and 00/100 Dollars ($1,250,000) together with interest at six percent
(6%) per annum from the date of this Note to maturity of each installment on the
principal hereof remaining from time to time unpaid, such principal and interest
to be paid in 21 monthly installments consisting of 1 monthly installments of
interest only of $416.67, commencing April 1, 1999, followed by 19 monthly
installments of interest only of $6,250.00 each, commencing May 1, 1999 and on
the same day of each month thereafter to and including November 1, 2000,
followed by one final balloon payment of $1,256,250.00 due December 1, 2000,
such installments to be applied first to accrued and unpaid interest and the
balance to unpaid principal.  Interest shall be computed on the basis of a year
consisting of twelve months of thirty days each.

This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Subordinated Loan and Security Agreement dated
March 19, 1999 herewith by and between Borrower and Lender (as the same may from
time to time be amended, modified or supplemented in accordance with its terms,
the "Loan Agreement"), and is entitled to the benefit and security of the Loan
Agreement and the other Loan Documents (as defined in the Loan Agreement), to
which reference is made for a statement of all of the terms and conditions
thereof.  All terms defined in the Loan Agreement shall have the same
definitions when used herein, unless otherwise defined herein.

THIS NOTE IS EXPRESSLY SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION
AGREEMENT BY AND BETWEEN LENDER AND BORROWER FOR THE BENEFIT OF SENIOR CREDITOR.
IN THE EVENT OF ANY CONTRADICTION OR INCONSISTENCY BETWEEN THIS NOTE AND THE
SUBORDINATION AGREEMENT, THE TERMS OF THE SUBORDINATION AGREEMENT SHALL CONTROL.

The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.

                                      -22-
<PAGE>

AIRSPAN COMMUNICATIONS

Prepared by G. Gillen

Loan Amount:............  1,250,000.00
Interest Rate...........         6.000%
Payment.................  1,256,250.00

<TABLE>
<CAPTION>
    Payment
    Number                  Date                 Principal         Interest               Payment             Balance
--------------        --------------          --------------     --------------        --------------    -----------------
  <S>                  <C>                       <C>              <C>                    <C>              <C>
                         03/29/99
    1                    04/01/99                  0.00               416.67                 416.67         1,250,000.00
    2                    05/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    3                    06/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    4                    07/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    5                    08/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    6                    09/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    7                    10/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    8                    11/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    9                    12/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    10                   01/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    11                   02/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    12                   03/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    13                   04/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    14                   05/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    15                   06/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    16                   07/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    17                   08/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    18                   09/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    19                   10/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    20                   11/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    21                   12/01/00          1,250,000.00             6,250.00           1,256,250.00                 0.00
</TABLE>

This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois.  This Note shall be governed by and construed and
enforced in accordance with, the laws of the State of Illinois, excluding any
conflicts of law rules or principles that would cause the application of the
laws of any other jurisdiction.

BORROWER:                              AIRSPAN COMMUNICATIONS
                                       CORPORATION
                                       % SeaPoint Ventures
                                       777 108th Ave. NE, Suite 10895
                                       Bellevue, WA  98004


                                       Signature: /s/ Eric Stonestrom
                                                 ------------------------------
                                       Print Name:  Eric Stonestrom
                                       Title:  President and CEO

                                      -23-
<PAGE>

                                    Part II
                         SUBORDINATED PROMISSORY NOTE

$1,250,000                                                 Date:  March 29, 1999
                                                           Due: December 1, 2000

FOR VALUE RECEIVED, Airspan Communications Corporation, a Delaware corporation
(the "Borrower") hereby promises to pay to the order of Comdisco, Inc., a
Delaware corporation (the "Lender") at P.O. Box 91744, Chicago, IL 60693 or such
other place of payment as the holder of this Secured Promissory Note (this
"Note") may specify from time to time in Writing, in lawful money of the United
States of America, the principal amount of One Million Two Hundred Fifty
Thousand and 00/100 Dollars ($1,250,000) together with interest at six percent
(6%) per annum from the date of this Note to maturity of each installment on the
principal hereof remaining from time to time unpaid, such principal and interest
to be paid in 54 monthly installments consisting of 1 monthly installments of
interest only of $416.67, commencing April 1, 1999, followed by 52 monthly
installments of interest only of $6,250.00 each, commencing May 1, 1999 and on
the same day of each month thereafter to and including August 1, 2003, followed
by one final balloon payment of $1,256,250.00 due September 1, 2003, such
installments to be applied first to accrued and unpaid interest and the balance
to unpaid principal.  Interest shall be computed on the basis of a year
consisting of twelve months of thirty days each.

This Note is the Note referred to in, and is executed and delivered in
connection with, that certain Subordinated Loan and Security Agreement dated
March 19, 1999 herewith by and between Borrower and Lender (as the same may from
time to time be amended, modified or supplemented in accordance with its terms,
the "Loan Agreement"), and is entitled to the benefit and security of the Loan
Agreement and the other Loan Documents (as defined in the Loan Agreement), to
which reference is made for a statement of all of the terms and conditions
thereof.  All terms defined in the Loan Agreement shall have the same
definitions when used herein, unless otherwise defined herein.

THIS NOTE IS EXPRESSLY SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION
AGREEMENT BY AND BETWEEN LENDER AND BORROWER FOR THE BENEFIT OF SENIOR CREDITOR.
IN THE EVENT OF ANY CONTRADICTION OR INCONSISTENCY BETWEEN THIS NOTE AND THE
SUBORDINATION AGREEMENT, THE TERMS OF THE SUBORDINATION AGREEMENT SHALL CONTROL.

The Borrower waives presentment and demand for payment, notice of dishonor,
protest and notice of protest and any other notice as permitted under the UCC or
any applicable law.
<PAGE>

This Note has been negotiated and delivered to Lender and is payable in the
State of Illinois, and shall not become effective until accepted by Lender in
the State of Illinois.  This Note shall be governed by and construed and
enforced in accordance with, the laws the State of Illinois, excluding any
conflicts of law rules or principles that would cause ______ application of the
laws of any other jurisdiction.

BORROWER:                              AIRSPAN COMMUNICATIONS
                                       CORPORATION
                                       % SeaPoint Ventures
                                       777 108th Ave. NE, Suite 10895
                                       Bellevue, WA  98004


                                       Signature: /s/ Eric Stonestrom
                                                 ------------------------------
                                       Print Name:  Eric Stonestrom
                                       Title:  President and CEO


                                      -2-
<PAGE>

AIRSPAN COMMUNICATIONS

Prepared by G. Gillen

Loan Amount:............  1,250,000.00
Interest Rate...........         6.000%
Payment.................  1,256,250.00

<TABLE>
<CAPTION>
   Payment
   Number                  Date                  Principal          Interest               Payment            Balance
--------------        --------------          --------------     --------------        --------------    -----------------
  <S>                 <C>                      <C>                <C>                   <C>               <C>
                         03/29/99
    1                    04/01/99                  0.00               416.67                 416.67         1,250,000.00
    2                    05/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    3                    06/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    4                    07/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    5                    08/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    6                    09/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    7                    10/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    8                    11/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    9                    12/01/99                  0.00             6,250.00               6,250.00         1,250,000.00
    10                   01/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    11                   02/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    12                   03/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    13                   04/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    14                   05/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    15                   06/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    16                   07/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    17                   08/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    18                   09/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    19                   10/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    20                   11/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    21                   12/01/00                  0.00             6,250.00               6,250.00         1,250,000.00
    22                   01/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    23                   02/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    24                   03/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    25                   04/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    26                   05/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    27                   06/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    28                   07/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    29                   08/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    30                   09/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    31                   10/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    32                   11/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    33                   12/01/01                  0.00             6,250.00               6,250.00         1,250,000.00
    34                   01/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    35                   02/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    36                   03/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    37                   04/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    38                   05/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    39                   06/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    40                   07/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    41                   08/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    42                   09/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    43                   10/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    44                   11/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    45                   12/01/02                  0.00             6,250.00               6,250.00         1,250,000.00
    46                   01/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    47                   02/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    48                   03/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    49                   04/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    50                   05/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    51                   06/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    52                   07/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    53                   08/01/03                  0.00             6,250.00               6,250.00         1,250,000.00
    54                   09/01/03          1,250,000.00             6,250.00           1,256,250.00                 0.00
</TABLE>

                                      -3-