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                                                                   Exhibit 10.18
                                NETRO CORPORATION
                          EXECUTIVE RETENTION AGREEMENT

         This EXECUTIVE RETENTION AGREEMENT (the "AGREEMENT") is made and
entered into effective as of February 21, 2003 (the "EFFECTIVE DATE"), by and
between Peter Carson (the "EXECUTIVE") and Netro Corporation, a Delaware
corporation (together with its subsidiaries and successors, the "COMPANY").

         WHEREAS, Executive is currently a valued employee of the Company;

         WHEREAS, the Board of Directors of the Company (the "BOARD") believes
that it is in the best interests of the Company and its stockholders to provide
Executive with certain severance benefits in the event that Executive is
terminated under certain circumstances;

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained and the continued employment of Executive by the Company, the parties
agree as follows:

         1. Severance Benefits.

                  (a) In the event that (x) Executive's employment is terminated
         (A) by the Company without Cause (as defined below) at any time after
         the Effective Date or (B) by Executive for any reason within 12 months
         after a Change in Control (as defined below) or within 12 months after
         the filing of a plan of liquidation which has been approved by the
         Company's stockholders, or (y) Executive's employment is terminated for
         any other reason and the Compensation Committee of the Board expressly
         consents in writing to Executive receiving the benefits under this
         Agreement, Executive will be entitled to receive the following
         benefits:

                           (i) The Company shall pay to Executive a lump sum
                  payment equal to the base salary Executive would have received
                  had Executive continued to be employed by the Company for
                  eight additional months after the date of termination, less
                  applicable payroll deductions and withholdings.

                           (ii) Executive's outstanding unvested options to
                  purchase the Company's common stock shall become immediately
                  vested to the extent such options would have become vested
                  over the year following the date of Executive's termination,
                  and all vested options will remain exercisable until one year
                  from the date of Executive's termination or the date on which
                  such options would otherwise expire under the terms of the
                  applicable option plan and related option agreement.
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                           (iii) Except as set forth in clause (c) below,
                  Executive shall receive any other benefits under the
                  applicable benefits plans of the Company in accordance with
                  their terms.

                  (b) The receipt of all benefits hereunder shall be subject to
         Executive signing a general release of claims against the Company in a
         form acceptable to the Company.

                  (c) All amounts payable by the Company under this Agreement
         shall be reduced by any amounts required to be paid or notice required
         to be given to Executive as a result of the termination of employment
         under any applicable federal, state or local law, including but not
         limited to the Workers Adjustment and Retaining Notification Act (the
         "WARN ACT") and any similar state law, and will be in lieu of any other
         severance benefits or payments pursuant to the Company's severance
         plans or policies or any other agreement between the Company and
         Executive.

                  (d) For purposes hereof, the following terms have the meanings
         set forth below:

                           (i) "CAUSE" means (i) the continued failure by
                  Executive to devote substantially all of his business time and
                  energies to the performance of his duties to the Company
                  (other than as a result of total or partial incapacity due to
                  physical or mental illness) after a written demand for
                  substantial performance is delivered to Executive and
                  Executive shall have failed during the 30-day period following
                  such written demand to have corrected such failure; (ii) any
                  willful act or omission by Executive constituting dishonesty,
                  fraud or other malfeasance against the Company; (iii)
                  Executive's conviction of a felony, plea of nolo contendre or
                  guilty plea to a felony; or (iv) the breach by Executive of
                  the Confidentiality Agreement (as defined below).

                           (ii) "CHANGE IN CONTROL" means:

                                    (A) the acquisition by any person, entity or
                           "group", within the meaning of Section 13(d)(3) or
                           14(d)(2) of the Securities and Exchange Act of 1934,
                           as amended (the "EXCHANGE ACT"), (excluding, for this
                           purpose, the Company or its subsidiaries, or any
                           employee benefit plan of the Company or its
                           subsidiaries which acquires beneficial ownership of
                           voting securities of the Company) of beneficial
                           ownership (within the meaning of Rule 13d-3
                           promulgated under the Exchange Act) of 50% or more of
                           either the then outstanding shares of common stock or
                           the combined voting power of the Company's then

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                           outstanding voting securities entitled to vote
                           generally in the election of directors;

                                    (B) individuals who, as of the date hereof,
                           constitute the Board (the "INCUMBENT BOARD") cease
                           for any reason to constitute at least a majority of
                           the Board, provided that any person becoming a
                           director subsequent to the date hereof whose
                           election, or nomination for election by the Company's
                           stockholders, was approved by a vote of at least a
                           majority of the directors then comprising the
                           Incumbent Board (other than an election or nomination
                           of an individual whose initial assumption of the
                           office is in connection with an actual or threatened
                           election contest relating to the election of the
                           directors of the Company, as such terms are used in
                           Rule 14a-11 of Regulation 14A promulgated under the
                           Exchange Act) shall be, for the purposes of this
                           Agreement, considered as though such person were a
                           member of the Incumbent Board;

                                    (C) consummation of a reorganization, merger
                           or consolidation, in each case, with respect to which
                           persons who were the stockholders of the Company
                           immediately prior to such reorganization, merger or
                           consolidation do not, immediately thereafter, own
                           more than 50% of the combined voting power entitled
                           to vote generally in the election of directors of the
                           reorganized, merged or consolidated company's then
                           outstanding voting securities; or

                                    (D) the sale of all or substantially all of
                           the assets of the Company.

         (e) In the event Executive's employment is terminated other than as
provided under clause (a) above, then Executive shall not be entitled to receive
any severance benefits under this Agreement; provided that in such event
Executive shall be entitled to receive his accrued unpaid base salary through
the date of such termination and any applicable benefits under the plans and
policies of the Company in accordance with their terms, and the Company will
have no further obligations under this Agreement with respect to Executive.

         2. Restrictive Covenants. Executive agrees and understands that during
and after his employment with the Company, he will continue to bound by the
provisions of the Confidentiality, Inventions and Arbitration Agreement (the
"CONFIDENTIALITY AGREEMENT") between Executive and the Company, including but
not limited to the agreement for one year after termination of your employment
not to encourage or solicit any employee or consultant of the Company to
terminate their relationship with the Company, and that such obligations shall
survive the termination of this Agreement.

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         3. Limited Benefits. Notwithstanding anything contained in this
Agreement to the contrary, to the extent that the payments and benefits provided
under this Agreement and benefits provided to, or for the benefit of, Executive
under any other employer plan or agreement (such payments or benefits are
collectively referred to as the "BENEFITS") would be subject to the excise tax
(the "EXCISE TAX") imposed under Section 4999 of the Internal Revenue Code of
1986, as amended (the "CODE"), the Benefits shall either be (i) paid in full or
(ii) reduced to such lesser amount which would result in no portion of such
Benefits being subject to the Excise Tax, whichever of the foregoing amounts,
taking into account the applicable federal, state and local income taxes and the
Excise Tax, results in the receipt by Executive on an after-tax basis, of the
greatest amount of benefits. A determination as to whether the Benefits shall be
so reduced shall be made by the Company's independent public accountants and
shall be binding on Executive and the Company.

         4. Arbitration. Any dispute or controversy arising under or in
connection with this Agreement may be settled at the option of either party by
binding arbitration in the County of Santa Clara, California, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may
be entered on the arbitrator's award in any court having jurisdiction. The costs
of such arbitration will be borne by the Company. In the arbitration, the
parties will be entitled to all remedies that would have been available if the
matter were litigated in a court of law.

         5. Term. This Agreement shall expire on the later of (i) the date that
is one year following a Change of Control that has occurred prior to February
21, 2005 or (ii) February 21, 2005, except to the extent necessary to give
effect to the provisions hereof.

         6. Miscellaneous.

                  (a) Attorneys Fees. If a legal action or other proceeding,
         including arbitration pursuant to Section 4, is brought for enforcement
         of this Agreement, each party shall be responsible for the payment of
         its own attorneys' fees, except that the Company shall reimburse
         Executive for all legal fees and expenses incurred by him in connection
         therewith to the extent Executive prevails in such dispute to a
         material extent.

                  (b) At-will Employment. The Company and Executive acknowledge
         that the Executive's employment is and shall continue to be at-will, as
         defined under applicable law.

                  (c) No Mitigation. Executive shall not be required to mitigate
         the amount of any payment provided for under this Agreement by seeking
         employment or otherwise, not will any such payments be reduced by any
         earnings that Executive may receive from any other employer.

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                  (d) Successors and Assignments. This Agreement is binding on
         and may be enforced by the Company and its successors and assigns and
         is binding on and may be enforced by Executive and Executive's heirs
         and legal representatives. Notwithstanding the foregoing, this
         Agreement shall not be assignable by Executive and may be assigned by
         the Company only to an affiliate or a successor to the Company of
         substantially all of its business (whether by purchase, merger,
         consolidation or otherwise).

                  (e) Notices. Notices under this Agreement must be in writing
         and will be deemed to have been given when personally delivered or two
         days after mailed by U.S. registered or certified mail, return receipt
         requested and postage prepaid. Mailed notices to Executive will be
         addressed to Executive at the home address which Executive has most
         recently communicated to the Company in writing. Notices to the Company
         will be addressed to its General Counsel (or if the Company does not
         have a General Counsel, to its Chief Financial Officer) at the
         Company's corporate headquarters.

                  (f) Waiver. No provision of this Agreement may be modified or
         waived except in writing signed by the parties hereto. No waiver by
         either party of any breach of this Agreement by the other party will be
         considered a waiver of any other breach of this Agreement.

                  (g) Entire Agreement. This Agreement represents the entire
         agreement between Executive and the Company concerning the subject
         matter herein and supercedes all other prior or contemporaneous
         agreements concerning such subject matter, whether written or oral.

                  (h) Governing Law. This Agreement will be governed by the laws
         of the State of California without reference to conflict of laws
         provisions.

                  (i) Severability. The invalidity or unenforceability of any
         provision or provisions of this Agreement shall not affect the validity
         or enforceability of any other provision hereof, which shall remain in
         full force and effect.

                  (j) Taxes. All payments and benefits received pursuant to this
         Agreement shall be subject to withholding of applicable taxes.

                  (k) Counterparts. This Agreement may be executed in
         counterparts, each of which shall be deemed an original, but all of
         which together will constitute one and the same instrument.


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         IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement as of the day and year first above written.

                                                     NETRO CORPORATION

                                                     By: /s/ Shlomo Yariv
                                                        -----------------------
                                                             Name:  Shlomo Yariv
                                                             Title: C.O.O



                                                     EXECUTIVE:
                                                       /s/ Peter Carson
                                                     --------------------------
                                                     Peter Carson

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