Document:

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                                                                    EXHIBIT 10.3

                             EMPLOYMENT AGREEMENT

          AGREEMENT, made as of November 1, 1999 by and between Western
Multiplex Corporation (the "Company"), a Delaware corporation and Amir
Zoufonoun ("Executive").

                                   RECITALS

          In connection with the acquisition by WMC Holding Corp. of all of
the issued and outstanding capital stock of Western Multiplex Corporation
from Glenayre Technologies, Inc., the Company desires to employ Executive to
serve as the President and Chief Operating Officer of the Company.  In order
to induce Executive to serve as the President and Chief Operating Officer of
the Company, the Company desires to provide Executive with compensation and
other benefits on the terms and conditions set forth in this Agreement.

          Executive is willing to accept such employment and perform services
for the Company, on the terms and conditions hereinafter set forth.

          It is therefore hereby agreed by and between the parties as
follows:

          1.  Employment.
              ----------

          1.1  Subject to the terms and conditions of this Agreement,
effective as of the date of the closing of the acquisition contemplated above
(the "Closing Date"), the Company agrees to employ Executive during the term
hereof (as defined in Section 2 below) as its President and Chief Operating
Officer.  In his capacity as the President and Chief Operating Officer of the
Company, Executive shall report to the Chief Executive Officer (the "CEO") or
the Board of Directors (the "Board") of the Company and shall have the
customary powers, responsibilities and authorities of a president for
corporations of the size and character of the Company, as it exists from time
to time, and as are assigned by the CEO or the Board.

          1.2  Subject to the terms and conditions of this Agreement,
Executive hereby accepts employment with the Company commencing on the date
hereof, and agrees to devote his full working time and efforts, to the best
of his ability, experience and talent, to the performance of services, duties
and responsibilities in connection therewith.  Executive shall perform such
duties and exercise such powers, commensurate with his position, as the CEO
or the Board shall from time to time delegate to him on such terms and
conditions and subject to such restrictions as the CEO or the Board may
reasonably from time to time impose.  Executive also agrees to serve, if
elected, as a member of the Board.

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          1.3  Nothing in this Agreement shall preclude Executive from
engaging, so long as, in the reasonable determination of the CEO, such
activities do not interfere with his duties and responsibilities hereunder,
in charitable and community affairs, from managing any passive investment
made by him in publicly traded equity securities or other property (provided
that no such investment may exceed 5% of the equity of any entity or, without
prior notice to the CEO and the Board and subject to Section 12(b) hereof,
from serving as a member of boards of directors or as a trustee of any other
corporation, association or entity.

          1.4  Executive hereby represents to the Company that the execution
and delivery of this Agreement by Executive and the Company and the
performance by Executive of the Executive's duties hereunder shall not
constitute a breach of, or otherwise contravene, the terms of any employment
agreement or other agreement or policy to which Executive is a party or
otherwise bound.

          2.  Term of Employment.  Executive's term of employment under this
Agreement shall commence on the date of the Closing Date (the "Effective
Date") and, subject to the terms hereof, Executive and the Company agree and
acknowledge that Executive's employment with the Company constitutes "at-
will" employment and that this Agreement may be terminated at any time by the
Company or Executive; provided, however, that any termination of employment
by Executive (other than for death or Permanent Disability) may only be made
upon 90 days prior written notice to the Company.

          3.  Compensation.
              ------------

          3.1  Salary.  The Company shall pay Executive a base salary ("Base
Salary") at the rate of $175,000 per annum for the year commencing on the
beginning of Executive's term of employment hereunder.  Base Salary shall be
adjusted annually at the discretion of the Board but in no event shall Base
Salary be reduced nor be less than the median base salary for a comparable
position at corporations of similar size and character as the Company, as it
exists from time to time, and, as increased, shall constitute "Base Salary"
hereunder.  Base Salary shall be payable in accordance with the ordinary
payroll practices of the Company.

          3.2  Annual Bonus.  In addition to his Base Salary, the Company
may, in its discretion, pay to Executive an annual cash bonus (the "Bonus")
during the term of his employment hereunder equal to a percentage of
Executive's Base Salary (the "Target Bonus").  The Bonus for each fiscal year
of the Company will be based on performance targets as may be established by
the Board (or a committee thereof), pursuant to an annual incentive plan that
is substantially similar to the plan in effect at the Company immediately
prior to the Closing Date.

                                      -2-

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          3.3  Compensation Plans and Programs.  Executive shall be eligible
to participate in any compensation plan or program maintained by the Company
from time to time in which other senior executives of the Company participate
on terms that are intended to be comparable to those applicable to such other
senior executives.

          3.4  Equity Participation.  (a) Simultaneous with the execution of
this Agreement, Executive shall subscribe to a certain number of shares of
common stock, par value $.01 per share of the Company ("Common Stock"), to be
purchased by Executive on the Closing Date from the Company at the same per
share purchase price paid by WMC Holding Corp. pursuant to a stockholder's
agreement to be entered into with the Company, substantially in the form of
the stockholder's agreement attached hereto as Exhibit [A].  Such purchase
shall be financed by Executive personally; provided, that the Company shall
guarantee a loan obtained by Executive from a third-party lender, in an
amount to be agreed upon, in respect of a portion of the Common Stock
purchased by Executive on the Closing Date, the terms of which are set forth
in Exhibit [B] attached hereto.

          (b) (i)  Executive shall also be granted an option to purchase a
certain number of shares of Common Stock at the same per share purchase price
paid by WMC Holding Corp. on the Closing Date, which option shall vest (i)
12/36 after the first anniversary of the date of grant and (ii) thereafter,
1/36 until such option is 100% vested, and which shall otherwise be subject
to the terms and conditions of the stock option plan of the Company in effect
from time to time and the stockholder's agreement as discussed above (the
"Time Option"), [the terms of which are set forth in Exhibit [C] hereto].

          (ii)  Executive shall also be granted an option to purchase a
certain number of shares of Common Stock at a per share purchase price equal
to the fair market value of such shares at the date of grant, which option
shall vest (A) 100% in any event upon the tenth anniversary of the date of
grant, but (B) which vesting may accelerated in the event that certain
performance targets are achieved by the Company for fiscal years 2000 and
2001, which performance targets shall be established by the Board (the
"Performance Option"), [the terms of which are set forth in Exhibit [D]
hereto].

          (c)  In addition, the Company may, in its discretion, grant to
Executive additional options during the term of his employment hereunder as
may be determined by the Board (or a committee thereof) in accordance with
the terms of the stock option plan of the Company as in effect from time to
time, which options shall also be subject to the terms and conditions of the
stock option plan of the Company in effect from time to time and the
stockholder's agreement as discussed above.

                                      -3-

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          4.  Employee Benefits.
              -----------------

          4.1  Employee Benefit Programs, Plans and Practices.  The Company
shall provide Executive during the term of his employment hereunder with
coverage under all employee pension and welfare benefit programs, plans and
practices (commensurate with his positions in the Company from time to time
and to the extent permitted under any employee benefit plan) in accordance
with the terms thereof, which the Company makes available to its senior
executives.

          4.2  Vacation, Sick Leave and Fringe Benefits.  Executive shall be
entitled to such number of days of paid vacation and sick leave in each
calendar year as established under the Company's policies as in effect from
time to time, which shall be taken at such times as are consistent with
Executive's responsibilities hereunder.  In addition, Executive shall be
entitled to the perquisites and other fringe benefits currently made
available to senior executives of the Company, commensurate with his position
with the Company.

          5.  Expenses.  Executive is authorized to incur reasonable expenses
in carrying out his duties and responsibilities under this Agreement,
including, without limitation, expenses for travel and similar items related
to such duties and responsibilities.  The Company will reimburse Executive
for all such expenses upon presentation by Executive from time to time of
appropriately itemized and approved (consistent with the Company's policy)
accounts of such expenditures.

          6.  Termination of Employment.
              -------------------------

          6.1  Termination By the Company Without Cause By the Executive for
Good Reason.  (a)  The Company may terminate Executive's employment at any
time for any reason.  If Executive's employment is terminated by the Company
without Cause (as defined in Section 6.4(b) hereof) or by Executive for Good
Reason (as defined in Section 6.4(c) hereof), Executive shall receive such
payments, if any, under applicable plans or programs to which he is entitled
pursuant to the terms of such plans or programs.  In addition, Executive
shall be entitled to receive the following:

          (i) an amount equal to one times the Executive's Base Salary at the
annual rate as of the Termination Date, payable over the twelve month period
following the Termination Date in substantially equal installment payments
and in accordance with the normal payroll practices of the Company;

          (ii) a cash lump sum payment in respect of (x) accrued but unused
vacation days (the "Vacation Payment"), (y) compensation earned but not yet
paid (including any deferred Bonus payments) (the "Compensation Payment") and
(z) reasonable expenses incurred under Section 5 but not yet reimbursed (the
"Expense Payment");

                                      -4-

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          (iii) continued coverage under any employee medical, disability and
life insurance plans in accordance with the respective terms thereof for a
period ending on the earlier of (A) the first anniversary of the Termination
Date or (B) the date on which the Executive becomes covered under comparable
benefit plans of a new employer;

          (iv) acceleration of one hundred percent (100%) of the unvested
portion of the Time Option, if any, so that Executive's Time Option is fully
exercisable; and

           (v) the Target Bonus in respect of the fiscal year in which his
termination occurs, prorated by a fraction, the numerator of which is the
number of days of the fiscal year until the Termination Date and the
denominator of which is 365.

          (b)  The Vacation Payment, the Compensation Payment, and the
Expense Payment shall be paid by the Company to Executive within 30 days
after the termination of Executive's employment by check payable to the order
of Executive or by wire transfer to an account specified by Executive.

          6.2  Permanent Disability.  If the Executive becomes totally and
Permanently Disabled (as defined herein) for one hundred eighty (180)
consecutive days in any three hundred sixty-five (365) day period, the
Company or Executive may terminate Executive's employment on written notice
thereof, and Executive shall receive or commence receiving, as soon as
practicable:

          (a)  amounts payable pursuant to the terms of a disability
insurance policy or similar arrangement which the Company maintains during
the term hereof;

          (b)  the Target Bonus in respect of the fiscal year in which his
termination occurs, prorated by a fraction, the numerator of which is the
number of days of the fiscal year until termination and the denominator of
which is 365;

          (c)   the Vacation Payment, the Compensation Payment, and the
Expense Payment; and

          (d)  such payments under applicable plans or programs to which he
is entitled pursuant to the terms of such plans or programs.

     For purposes of this Section 6.2, "Permanent Disability" shall be
defined as (i) Executive's inability, by reason of physical or mental illness
or other cause, to substantially perform Executive's duties, responsibility
or obligations hereunder or (ii) in the discretion of the Board, disability

                                      -5-

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as that term is defined in any disability insurance policy of the Company in
effect at the time in question.

          6.3  Death.  In the event of Executive's death during the term of
his employment hereunder, Executive's estate or designated beneficiaries
shall receive or commence receiving, as soon as practicable:

          (a)   the Target Bonus in respect of the fiscal year in which his
death occurs, prorated by a fraction, the numerator of which is the number of
days of the fiscal year until his death and the denominator of which is 365;

          (b)  any death benefits provided under the employee benefit
programs, plans and practices referred to in Section 4.1 hereof, in
accordance with their terms;

          (c)  the Vacation Payment, the Compensation Payment, and the
Expense Payment; and

          (d)  such payments under applicable plans or programs to which
Executive's estate or designated beneficiaries are entitled pursuant to the
terms of such plans or programs.

          6.4  Termination By the Company for Cause or By Executive Without
Good Reason.  (a)  The Company shall have the right to terminate the
employment of Executive for Cause.  In the event that Executive's employment
is terminated by the Company for Cause, as hereinafter defined, or by
Executive without Good Reason (other than as a result of the Executive's
Permanent Disability, death or for Good Reason), notwithstanding any other
provision in this Agreement, the Executive shall be entitled only to the
Compensation Payment, the Vacation Payment, and the Expense Payment, and
shall not be entitled to any further compensation or benefits hereunder
including, without limitation, the payment of any Bonus in respect of all or
any portion of the fiscal year in which such termination occurs.

          (b)  As used herein, the term "Cause" shall be limited to (i)
willful misconduct by Executive in connection with his employment which
results in a demonstrable injury to the Company, (ii) willful and continued
failure by Executive to perform his material duties with respect to the
Company or its subsidiaries, which failure continues beyond 10 business days
after a written demand for substantial performance of such duties was given
to Executive by the Company, or (iii) the Executive's conviction of, or plea
of nolo contendere to, a felony or any misdemeanor involving moral turpitude.
Termination of the Executive for Cause shall be made by delivery to the
Executive of a copy of a resolution duly adopted by the affirmative vote of
not less than a majority of the non-employee members of the Board at a
meeting of such members called and held for such purpose, after 30 days prior
written notice to the Executive specifying the basis for such termination and

                                      -6-

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the particulars thereof and a reasonable opportunity for the Executive to
cure or otherwise, finding that in the reasonable judgment of such Directors,
the conduct or event set forth in any of clauses (i) through (iii) above has
occurred and that such occurrence warrants the Executive's termination.
Notwithstanding the foregoing, in no event shall the Company initiate a
termination for Cause in the event that the Executive has provided the
Company with written notice of his termination of employment for Good Reason.

          (c)  As used herein, the term "Good Reason" shall be limited to the
following:

          (i)  any material and adverse diminution in the Executive's duties
or responsibilities with the Company from those in effect immediately prior
to the Closing Date;

          (ii)  any reduction in the Executive's annual base salary or cash
target bonus opportunity from the annual base salary or cash target bonus
opportunity in effect immediately prior to the Closing Date;

          (iii)  any requirement that Executive be based at a location more
than fifty (50) miles from the location at which the Executive was based
immediately prior to the Closing Date (or a substantial increase in the
amount of travel Executive is required to do because of a relocation of the
executive offices);

          (iv)  any adverse change in the Executive's reporting obligations,
which results in the Executive ceasing to report to either the CEO or the
Board; and

          (v)  any failure by the Company to obtain from any successor to the
Company an agreement reasonably satisfactory to the Executive to assume and
perform this Agreement, as contemplated by Section 10 hereof.

          7.  Mitigation of Damages; Limitations on Severance Payments.  (a)
Executive shall not be required to mitigate damages or the amount of any
payment provided for under this Agreement by seeking other employment or
otherwise after the termination of his employment hereunder.

          (b)  (i)  In the event that the severance payments and other
benefits provided for in this Agreement or otherwise payable or provided to
the Executive (i) constitute "parachute payments" within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"),
and (ii) but for this Section 7(b) would be subject to the excise tax imposed
by Section 4999 of the Code or any similar or successor provision thereto
(the "Excise Tax"), then the Executive's severance payments and benefits
provided for hereunder shall be either (i) delivered in full pursuant to the
terms of this Agreement or  (ii) delivered as to such lesser extent which

                                      -7-

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would result in no portion of such severance payments and other 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 the Executive, on an after-tax basis,
of the greatest amount of severance payments and benefits provided for
hereunder, notwithstanding that all or some portion of such severance
payments and benefits may be subject to the Excise Tax.  Unless the Company
and the Executive otherwise agree in writing, any determination required
under this Section 7(b) shall be made by the Company's accountants prior to a
"change in ownership or control" (as such terms are defined in Section 280G
of the Code), whose determination shall be conclusive and binding upon the
Executive and the Company for all purposes.

          (ii)  For purposes of making the calculations required by this
Section 7(b), the accountants may make reasonable assumptions and
approximations concerning applicable taxes and may rely on reasonable, good
faith interpretations concerning the application of Sections 280G and 4999 of
the Code to the severance payments and benefits provided for hereunder.  The
Company and the Executive shall furnish to the accountants such information
and documents as the accountants may reasonably request in order to make a
determination under this Section 7(b).  In addition, the Company shall bear
all costs that the accountants may reasonably incur in connection with any
calculations contemplated by this Section 7(b).

          8.  Notices.  All notices or communications hereunder shall be in
writing, addressed as follows:

          To the Company:

               Western Multiplex Corporation
               1196 Borregas Ave.
               Sunnyvale, California  94089
               Attention:

          with a copy to:

               Alvin H. Brown, Esq.
               Simpson Thacher & Bartlett
               425 Lexington Avenue
               New York, New York  10017

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          To Executive:

               Amir Zoufonoun
               c/o Western Multiplex Corporation
               1196 Borregas Ave.
               Sunnyvale, California  94089

Any such notice or communication shall be delivered by hand, by telecopy
(with machine confirmation) or by courier or sent certified or registered
mail, return receipt requested, postage prepaid, addressed as above (or to
such other address as such party may designate in a notice duly delivered as
described above), and the third business day after the actual date of mailing
shall constitute the time at which notice was given.

          9.  Separability; Legal Fees.  If any provision of this Agreement
shall be declared to be invalid or unenforceable, in whole or in part, such
invalidity or unenforceability shall not affect the remaining provisions
hereof which shall remain in full force and effect.  In the event of any
dispute with respect to this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees and other costs and expenses incurred
in resolving such dispute.

          10.  Assignment.  This contract shall be binding upon and inure to
the benefit of the heirs and representatives of Executive and the assigns and
successors of the Company, but neither this Agreement nor any rights or
obligations hereunder shall be assignable or otherwise subject to
hypothecation by Executive (except by will or by operation of the laws of
intestate succession) or by the Company, except that the Company may assign
this Agreement to any successor (whether by merger, purchase or otherwise) to
all or substantially all of the stock, assets or businesses of the Company,
if such successor expressly agrees to assume the obligations of the Company
hereunder.

          11.  Amendment.  This Agreement may only be amended by written
agreement of the parties hereto.

          12.  Nondisclosure of Confidential Information; Non-Competition.
(a)  At any time during or after Executive's employment with the Company,
Executive shall not, without the prior written consent of the Company, use,
divulge, disclose or make accessible to any other person, firm, partnership,
corporation or other entity any Confidential Information (as hereinafter
defined) pertaining to the business of the Company or any of its
subsidiaries, except (i) while employed by the Company, in the business of
and for the benefit of the Company, or (ii) when required to do so by a court
of competent jurisdiction, by any governmental agency having supervisory
authority over the business of the Company, or by any administrative body or
legislative body (including a committee thereof) with jurisdiction to order

                                      -9-

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Executive to divulge, disclose or make accessible such information.  For
purposes of this Section 12(a), "Confidential Information" shall mean non-
public information concerning the financial data, strategic business plans,
and other non-public, proprietary and confidential information of the
Company, its subsidiaries, Ripplewood Holdings L.L.C. or their respective
affiliates as in existence as of the date of Executive's termination of
employment that, in any case, is not otherwise available to the public (other
than by Executive's breach of the terms hereof).

          (b)  As President and Chief Operating Officer, Executive will
acquire knowledge of Confidential Information and trade secrets.  Executive
acknowledges that the Confidential Information and trade secrets which the
Company has provided and will provide to him could play a significant role
were he to directly to indirectly be engaged in any business in Competition
with the Company or its subsidiaries.  During the period of his employment
hereunder and for one year thereafter, Executive agrees that, without the
prior written consent of the Company, (A) he will not, directly or
indirectly, either as principal, manager, agent, consultant, officer,
stockholder, partner, investor, lender or employee or in any other capacity,
carry on, be engaged in or have any financial interest in (other than an
ownership position of less than 5 percent in any company whose shares are
publicly traded), any business, which is in Competition (as hereinafter
defined) with the existing business of the Company or its subsidiaries and
(B) he shall not, on his own behalf or on behalf of any person, firm or
company, directly or indirectly, solicit or offer employment to any person
who has been employed by the Company or its subsidiaries at any time during
the 12 months immediately preceding such solicitation to the extent that
Executive would use or inevitably use Confidential Information or trade
secrets or that would otherwise constitute unfair competition.

          (c)  For purposes of this Section 12, a business shall be deemed to
be in Competition with the Company or its subsidiaries if it is engaged in or
has taken concrete steps toward engaging in the business of research and
development, designing, manufacturing, marketing, distributing, or servicing
or selling components as used in microwave radios, products and equipment,
whether in existence or in development, relating to microwave communications
(including unlicensed spread spectrum radio, licensed microwave radio,
wireless ethernet bridge, and fixed wireless (e.g., wireless local loop,
point-to-point, point-to-multipoint)), as carried on by the Company or its
affiliates as of the date of Executive's termination of employment, in all
cities, counties, states and countries in which the business of the Company
or its affiliates is then being conducted or its products are being sold.

          (d)  The results and proceeds of Executive's services hereunder,
including, without limitation, any works of authorship resulting from
Executive's services during Executive's employment with the Company and/or
any of the Company's affiliates and any works in progress, will be works-

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made-for hire and the Company will be deemed the sole owner throughout the
universe of any and all rights of whatsoever nature therein, whether or not
now or hereafter known, existing, contemplated, recognized or developed, with
the right to use the same in perpetuity in any manner the Company determines
in its sole discretion without any further payment to Executive whatsoever.
If, for any reason, any of such results and proceeds will not legally be a
work-for-hire and/or there are any rights which do not accrue to the Company
under the preceding sentence, then Executive hereby irrevocably assigns and
agrees to assign any and all of Executive's right, title and interest
thereto, including, without limitation, any and all copyrights, patents,
trade secrets, trademarks and/or other rights of whatsoever nature therein,
whether or not now or hereafter known, existing, contemplated, recognized or
developed, to the Company, and the Company will have the right to use the
same in perpetuity throughout the universe in any manner the Company
determines without any further payment to Executive whatsoever.  Executive
will, from time to time as may be requested by the Company, (i) during the
term of Executive's employment without further consideration, and (ii)
thereafter at Executive's then current hourly rate, do any and all things
which the Company may deem useful or desirable to establish or document the
Company's exclusive ownership of any and all rights in any such results and
proceeds, including, without limitation, the execution of appropriate
copyright and/or patent applications or assignments.  To the extent Executive
has any rights in the results and proceeds of Executive's services that
cannot be assigned in the manner described above, Executive unconditionally
and irrevocably waives the enforcement of such rights.  This subsection is
subject to and will not be deemed to limit, restrict, or constitute any
waiver by the Company of any rights of ownership to which the Company may be
entitled by operation of law by virtue of the Company being Executive's
employer.  This Section does not apply to an invention that qualifies as a
nonassignable invention Section 2870 of the California Labor Code, which
applies to any invention for which no equipment, supplies, facilities or
Confidential Information was used, which does not (i) relate to the business
of the Company; (ii) relate to the Company's actual or demonstrable
anticipated research or development or (iii) result from any work performed
by Executive for the Company.  This confirms that Executive has been notified
of his rights under Section 2870 of the California Labor Code.

          (e)  Executive and the Company agree that this covenant not to
compete is a reasonable covenant under the circumstances, and further agree
that if in the opinion of any court of competent jurisdiction such restraint
is not reasonable in any respect, such court shall have the right, power and
authority to excise or modify such provision or provisions of this covenant
as to the court shall appear not reasonable and to enforce the remainder of
the covenant as so amended.  Executive agrees that any breach of the
covenants contained in this Section 12 would irreparably injure the Company.
Accordingly, Executive agrees that the Company may, in addition to pursuing
any other remedies it may have in law or in equity, cease making any payments

                                     -11-

<PAGE>

otherwise required by this Agreement and obtain an injunction against
Executive from any court having jurisdiction over the matter restraining any
further violation of this Agreement by Executive.

          13.  Beneficiaries; References.  Executive shall be entitled to
select (and change, to the extent permitted under any applicable law) a
beneficiary or beneficiaries to receive an  compensation or benefit payable
hereunder following Executive's death, and may change such election, in
either case by giving the Company written notice thereof.  In the event of
Executive's death or a judicial determination of his incompetence, reference
in this Agreement to Executive shall be deemed, where appropriate, to refer
to his beneficiary, estate or other legal representative.  Any reference to
the masculine gender in this Agreement shall include, where appropriate, the
feminine.

          14.  Survivorship.  The respective rights and obligations of the
parties hereunder shall survive any termination of this Agreement to the
extent necessary to the intended preservation of such rights and obligations,
including the provisions of Section 12 herein.  The provisions of this
Section 14 are in addition to the survivorship provisions of any other
section of this Agreement.

          15.  Governing Law.  This Agreement shall be construed, interpreted
and governed in accordance with the laws of the State of New York without
reference to rules relating to conflicts of law.  For purposes of
jurisdiction and venue, the Company hereby consents to jurisdiction and venue
in any suit, action or proceeding with respect to this Agreement in any court
of competent jurisdiction in the state in which Executive resides at the
commencement of such suit, action or proceeding and waives any objection,
challenge or dispute as to such jurisdiction or venue being proper.

          16.  Effect on Prior Agreements.  This Agreement contains the
entire understanding between the parties hereto and supersedes in all
respects any prior or other agreement or understanding between the Company or
any affiliate of the Company and Executive other than the agreements referred
to in Section 3.4 hereof.

          17.  Withholding.  The Company shall be entitled to withhold from
payment any amount of withholding required by law.

          18.  Shareholder Approval.  This Agreement shall not become
effective and no payments and benefits set forth in Section 6 shall be paid
unless and until the Company obtains the affirmative vote of more than
seventy-five percent of all shareholders, excluding Executive and excluding

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those shareholders who are lineally related to, or the spouse of, Executive.
Even though all shareholders of the Company may vote on the approval of this
Agreement, only the votes of such qualifying shareholders as are described in
this Section 18 will count for purposes of calculating whether the requisite
shareholder approval of this Agreement is obtained.

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          19.  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original.

                                              WESTERN MULTIPLEX CORPORATION

                                              By   /s/ Jonathan N. Zakin
                                                  -----------------------
                                              Name:  Jonathan N. Zakin
                                              Title:  Chief Executive Officer

                                              EXECUTIVE:

                                              /s/ Amir Zoufonoun
                                              -------------------------
                                              Amir Zoufonoun

                                     -14-<PAGE>

                                                                    EXHIBIT 10.4

                SUBSCRIPTION AND EMPLOYEE STOCKHOLDER'S AGREEMENT
    [Employee Receiving Options and Purchasing Common Stock with Assistance]

     This SUBSCRIPTION EMPLOYEE AND STOCKHOLDER'S AGREEMENT, is entered into as
of January 31, 2000 (the "Agreement"), among, WMC Holding Corp., a Delaware
corporation (together with its successors and permitted assigns, "Holding"),
Western Multiplex Corporation, a Delaware corporation (together with its
successors and permitted assigns, "WMC"), the undersigned, as set forth on the
signature page hereof (the "Employee Stockholder") and Ripplewood Partners, L.P.
(together with its successors and permitted assignees (including Permitted
Transferees as defined below) "Ripplewood") (Holding, WMC, Ripplewood and the
Employee Stockholder being hereinafter collectively referred to as the
"Parties").

                                    Recitals

     Pursuant to an Acquisition Agreement, dated as of September 30, 1999, as
amended on October 31, 1999, among WMC, Holding, GTI Acquisition Corp., a
Delaware corporation ("Glenayre"), Glenayre Technologies, Inc., a Delaware
corporation, and Western Multiplex Corporation, a California corporation, WMC
redeemed 42,000,000 shares of Class B common stock of WMC, par value $.01 per
share, held by Glenayre and Holding purchased 35,955,000 shares of outstanding
Common Stock of WMC from Glenayre (the "Recapitalization");

     In connection with the Recapitalization, employees and members of
management of WMC are being offered the opportunity to subscribe for shares of
Class A common stock of Holding, par value $.01 per share ("Common Stock"), and
WMC is issuing options ("Options") to certain of its key employees under the
1999 Western Multiplex Corporation Stock Incentive Plan (the "Plan") to purchase
shares of Class A Common Stock of WMC, par value $.01 per share;

     The Employee Stockholder, Holding and WMC have agreed that the Employee
Stockholder may subscribe for a certain number of shares of Common Stock and,
the Employee Stockholder will receive a certain number of Options pursuant to
the terms of the "Non-Qualified Stock Option Agreement" attached hereto as
Exhibit A;

     WMC has agreed, through the guarantee of a loan to the Employee Stockholder
from a designated bank, to assist the Employee Stockholder in purchasing shares
of Common Stock on terms and conditions to be determined by WMC ("Assisted
Shares");

     This Agreement is one of several other similar agreements which have been,
or will be, entered into by WMC, Holding and other individuals who are employees
of WMC and who are being offered the right to purchase Common Stock and who are
being granted Options (the "Other Employee Stockholder");

     NOW THEREFORE, to implement the foregoing and in consideration of the grant
of Options and of the mutual agreements contained herein, the Parties agree as
follows:
<PAGE>

                                                                               2

     Section 1. Certain Definitions.

     (a) As used in this Agreement, the following terms shall have the following
meanings:

          "Affiliate" with respect to any person, means any entity directly or
     indirectly controlling, controlled by, or under common control with such
     person or any entity designated as such by the Board of Directors of such
     person in which such person or an Affiliate has an interest.

          "Book Value" means, on a per share, fully-diluted basis, shareholder's
     equity as determined in accordance with GAAP.

          "Cause" has the same meaning attributed to it in the Employee
     Stockholder's Employment Agreement with WMC, dated as of November 1, 1999.

          "Employment, Confidential Information and Invention Assignment
     Agreement" means the Employment, Confidential Information and Invention
     Assignment Agreement in the form attached as Exhibit B hereto to be
     executed and delivered by the Employee Stockholder to WMC on the date
     hereof.

          "Fair Market Value" means, prior to a Public Offering (as defined
     below), the fair market value of the shares of Stock, as determined in good
     faith by the Board of Directors of WMC (with respect to Option Stock) or
     Holding (with respect to Common Stock), and following a Public Offering,
     the average daily closing price of the shares of common stock of WMC ("WMC
     Common Stock") for the ten consecutive trading days preceding the date the
     Fair Market Value of the Stock is required to be determined hereunder.

          "Good Reason" means (i) a reduction in the Employee Stockholder's base
     salary (other than any general salary reduction and/or reorganization
     affecting at least the majority of salaried employees of WMC), (ii) a
     material and adverse reduction in the Employee Stockholder's duties and
     responsibilities, or (iii) a transfer of the Employee Stockholder's primary
     workplace by more than fifty (50) miles from the current workplace, other
     than as approved by any of the senior executives of WMC.

          The "Option Price" is $0.50 per share (as adjusted for any share
     dividend, split, reverse split, combination, recapitalization, liquidation,
     reclassification, merger, consolidation or otherwise).

          "Permitted Ripplewood/Holding Transferee" means (a) Ripplewood
     Holdings L.L.C. ("Ripplewood Holdings") or any Affiliate of Ripplewood
     Holdings, (b) a stockholder, partner, member or employee of Ripplewood
     Holdings or any Affiliate of Ripplewood Holdings or (c) an employee,
     director or officer of Holding or WMC or any subsidiary of Holding or WMC
     (up to an aggregate of 5% of the outstanding common stock of WMC and
     Holding).

          "Public Offering" means a firmly underwritten registered public
     offering of WMC Common Stock.
<PAGE>

                                                                               3

     "Securities Act" means the Securities Act of 1933, as amended.

     (b) As used in this Agreement, each of the following capitalized terms
shall have the meaning ascribed to them in the Section set forth opposite such
term:

<TABLE>
<CAPTION>
     Term                                                          Section
     ----                                                          -------
<S>                                                                  <C>
     Affiliate                                                       1(a)
     Assisted Shares                                               Recitals
     Book Value                                                      1(a)
     Call Notice                                                     6(e)
     Call Rights                                                     6(d)
     Cause                                                           1(a)
     Common Stock                                                  Recitals
     Confidential Offering Memorandum                                3(g)
     Drag Along Notice                                                8
     Employment, Confidential Information &
       Invention Assignment Agreement                                1(a)
     Employee Stockholder's Trust                                    3(a)
     Fair Market Value                                               1(a)
     Good Reason                                                     1(a)
     Holding Stock                                                   7(a)
     Offer                                                            5
     Offeror                                                          5
     Option Agreement                                              Recitals
     Options                                                       Recitals
     Option Price                                                    1(a)
     Option Stock                                                    3(a)
     Other Employee Stockholders                                   Recitals
     Permitted Ripplewood/Holding Transferee                         1(a)
     Permitted Transferee                                            3(a)
     Plan                                                          Recitals
     Purchase Price                                                  6(d)
     Public Offering                                                 1(a)
     Restricted Period                                               4(a)
     Ripplewood Holdings                                              2
     SEC                                                             3(e)
     Securities Act                                                  1(a)
     Stock                                                           3(a)
     Tag-Along Notice                                                 7
     Termination Not for Cause                                       5(b)
     Transfer                                                        2(a)
     WMC                                                           Recitals
     WMC Common Stock                                                1(a)
     WMC Sale Tag-Along Notice                                        7
</TABLE>
<PAGE>

                                                                               4

     Section 2. Common Stock: Issuance of Options. (a) Subject to the terms and
conditions hereof, Holding hereby agrees to issue and sell to the Employee
Stockholder, and the Employee Stockholder hereby agrees to subscribe for the
number of shares of Common Stock set forth opposite such Employee Stockholder's
name on the signature page hereof at a price of $0.50 per share in cash. In
addition, WMC agrees to guarantee a loan to be made by a bank designated by WMC
to the Employee Stockholder in order to enable the Employee Stockholder to
purchase the Assisted Shares set forth on the signature pages hereof at a
purchase price of $.50 per share in cash and on such other terms and conditions
as are determined by WMC. The closing of such purchase and sale shall take place
at such time and place as is notified to the Employee Stockholder (the "Closing
Date"). On or prior to the Closing Date, the Employee Stockholder shall deliver
to Holding a check in an amount equal to the purchase price for the Common
Stock. Holding shall have no obligation to sell any shares of Common Stock to
any person who (i) is a resident or citizen of a state or other jurisdiction in
which the sale of the Common Stock to him or her would constitute a violation of
the securities or "blue sky" laws of such jurisdiction or (ii) is not an
employee of WMC on the date hereof.

     (b) Subject to the terms and conditions hereinafter set forth and upon and
as of the Closing Date, WMC shall issue to the Employee Stockholder the number
of Options set forth opposite the Employee Stockholder's name on the signature
page hereof and the Parties shall execute and deliver to each other copies of
the Non-Qualified Option Agreement concurrently with the issuance of the
Options.

     Section 3. Employee Stockholder's Representations, Warranties and
Agreements. (a) The Employee Stockholder agrees and acknowledges that he or she
will not, directly or indirectly, offer, transfer, sell, assign, pledge,
hypothecate or otherwise dispose of (any such act being referred to herein as a
"transfer") any shares of Common Stock (whether purchased on the Closing Date or
acquired at any time thereafter) and, at the time of exercise, the Class A
common stock of WMC issuable upon exercise of the Options (the "Option Stock"
and, collectively with the Common Stock and the Assisted Shares, the "Stock")
unless such transfer complies with Section 4 of this Agreement. If the Employee
Stockholder is an Affiliate, the Employee Stockholder also agrees and
acknowledges that he or she will not transfer any shares of Stock unless:

          (i) the transfer is pursuant to an effective registration statement
     under the Securities Act, and in compliance with applicable provisions of
     state securities laws, (if otherwise permitted under the terms set forth
     herein) or

          (ii) (A) counsel for the Employee Stockholder (which counsel shall be
     reasonably acceptable to WMC or Holding, as the case may be) shall have
     furnished WMC or Holding, as the case may be, with an opinion, satisfactory
     in form and substance to WMC or Holding, as the case may be, that no such
     registration is required because of the availability of an exemption from
     registration under the Securities Act and (B) if the Employee Stockholder
     is a citizen or resident of any country other than the United States, or
     the Employee Stockholder desires to effect any transfer in any such
     country, counsel for the Employee Stockholder (which counsel shall be
     reasonably
<PAGE>

                                                                               5

     satisfactory to WMC, in the case of Option Stock, or Holding, in the case
     of Common Stock) shall have furnished WMC or Holding, as the case may be,
     with an opinion or other advice satisfactory in form and substance to WMC
     or Holding, as the case may be, to the effect that such transfer will
     comply with the securities laws of such jurisdiction.

     Notwithstanding the foregoing, WMC and Holding acknowledge and agree that
any of the following transfers are deemed to be in compliance with the
Securities Act and this Agreement and no opinion of counsel is required in
connection therewith: (x) a transfer made pursuant to Section 9 hereof, (y) a
transfer upon the death of the Employee Stockholder to his executors,
administrators, testamentary trustees, legatees or beneficiaries or a transfer
to the executors, administrators, testamentary trustees, legatees or
beneficiaries of a person who has become a holder of Stock in accordance with
the terms of this Agreement, provided that it is expressly understood that any
such transferee shall be bound by the provisions of this Agreement and (z) a
transfer made after the Closing Date in compliance with the federal securities
laws to a trust or custodianship the beneficiaries of which may include only the
Employee Stockholder, his spouse or his lineal descendants (an "Employee
Stockholder's Trust"), provided that any such transfer under (x), (y) or (z) is
made expressly subject to this Agreement and that the transferee agrees in
writing to be bound by the terms and conditions hereof. The transferees of Stock
purchase to (x), (y) or (z) who agree to be bound by the terms of this Agreement
are referred to as "Permitted Transferees",

     (b) The certificate (or certificates) representing the Option Stock shall
bear the following legend:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,
     SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH
     TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
     COMPLIES WITH THE PROVISIONS OF THE SUBSCRIPTION AND EMPLOYEE STOCKHOLDER'S
     AGREEMENT DATED AS OF DECEMBER __, 1999 BETWEEN WESTERN MULTIPLEX
     CORPORATION ("WMC"), WMC HOLDING CORP., THE EMPLOYEE STOCKHOLDER NAMED ON
     THE FACE HEREOF AND RIPPLEWOOD PARTNERS, L.P. (A COPY OF WHICH IS ON FILE
     WITH THE SECRETARY OF WMC)."

     (c) The certificate (or certificates) representing the Common Stock shall
bear the following legend:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,
     SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH
     TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION
     COMPLIES WITH THE PROVISIONS OF THE SUBSCRIPTION AND EMPLOYEE STOCKHOLDER'S
     AGREEMENT DATED AS OF DECEMBER __, 1999 BETWEEN WESTERN MULTIPLEX
     CORPORATION, WMC HOLDING CORP. ("HOLDING"), THE EMPLOYEE STOCKHOLDER NAMED
     ON THE FACE HEREOF AND RIPPLEWOOD PARTNERS, L.P. (A COPY OF WHICH IS ON
     FILE WITH THE SECRETARY OF HOLDING)."
<PAGE>

                                                                               6

     (d) The Employee Stockholder acknowledges that he or she has been advised
that (i) a restrictive legend in the form heretofore set forth shall be placed
on the certificates representing the Stock and (ii) a notation shall be made in
the appropriate records of WMC and/or Holding, as the case may be, indicating
that the Stock is subject to restrictions on transfer and appropriate stop-
transfer restrictions will be issued to the applicable transfer agent with
respect to the Stock. If the Employee Stockholder is an Affiliate, the Employee
Stockholder also acknowledges that (1) the Stock must be held indefinitely and
the Employee Stockholder must continue to bear the economic risk of the
investment in the Stock unless it is subsequently registered under the
Securities Act or an exemption from such registration is available, (2) when and
if shares of Stock may be disposed of without registration in reliance on Rule
144 of the rules and regulations promulgated under the Securities Act, such
disposition can be made only in limited amounts in accordance with the terms and
conditions of such Rule and (3) if the Rule 144 exemption is not available,
public sale without registration will require compliance with some other
exemption under the Securities Act.

     (e)(i) If any shares of Option Stock are to be disposed of in accordance
with Rule 144 under the Securities Act or otherwise, the Employee Stockholder
shall promptly notify WMC of such intended disposition and shall deliver to WMC
at or prior to the time of such disposition such documentation as WMC may
reasonably request in connection with such sale and, in the case of a
disposition pursuant to Rule 144, shall deliver to WMC an executed copy of any
notice of Form 144 required to be filed with the Securities and Exchange
Commission (the "SEC").

          (ii) If any shares of Common Stock are to be disposed of in accordance
     with Rule 144 under the Securities Act or otherwise, the Employee
     Stockholder shall promptly notify Holding of such intended disposition and
     shall deliver to Holding at or prior to the time of such disposition such
     documentation as Holding may reasonably request in connection with such
     sale and, in the case of a disposition pursuant to Rule 144, shall deliver
     to Holding an executed copy of any notice of Form 144 required to be filed
     with the SEC.

     (f) The Employee Stockholder agrees that, if any shares of WMC Common Stock
are offered to the public pursuant to an effective registration statement under
the Securities Act (other than registration of securities issued under an
employee plan), the Employee Stockholder will not effect any public sale or
distribution of any shares of Stock not covered by such registration statement
from the time of the receipt of a notice from WMC that WMC has filed or
imminently intends to file such registration statement to, or within 180 days
after, the effective date of such registration statement, unless otherwise
agreed to in writing by WMC.

     (g) The Employee Stockholder represents and warrants that (i) he has
received and reviewed the document(s) comprising the Confidential Information
Memorandum, dated December 21, 1999 (the "Confidential Information Memorandum"),
relating to the Stock and Options, and the documents referred to therein,
certain of which documents set forth the rights, preferences, and restrictions
relating to the Stock and Options, and (ii) he or she has been given the
opportunity to obtain any additional information or documents and to ask
questions and receive answers about such information, WMC, Holding and the
business and prospects of WMC and Holding which he or she deems necessary to
evaluate the merits and risks related to his or her investment in the
<PAGE>

                                                                               7

Stock, and to verify the Confidential Information Memorandum and the information
contained in the document(s) received as indicated in this Section 3(g), and he
or she has relied solely on such information.

     (h) The Employee Stockholder further represents and warrants that (i) his
or her financial condition is such that he or she can afford to bear the
economic risk of holding the Stock for an indefinite period of time and has
adequate means for providing for his or her current needs and personal
contingencies, (ii) he or she can afford to suffer a complete loss of his or her
investment in the Stock, (iii) he or she understands and has taken cognizance of
all risk factors related to the purchase of Stock (including, but not limited
to, those set forth in the Confidential Information Memorandum) and (iv) his or
her knowledge and experience in financial and business matters are such that he
is capable of evaluating the merits and risks of his or her purchase of Stock as
contemplated by this Agreement.

     (i) The Employee Stockholder has executed and delivered to WMC the
Employment, Confidential Information and Invention Assignment Agreement.

     Section 4. Restrictions on Transfer. Except for transfers to Permitted
Transferees permitted by clauses (x), (y) and (z) of Section 3(a) or a sale of
shares of Stock pursuant to Section 9 of this Agreement, the Employee
Stockholder agrees that he or she will not transfer any shares of Stock at any
time prior to the third anniversary of the Closing Date (the "Restricted
Period"). The Employee Stockholder further agrees not to transfer any Options,
except as expressly provided by this Agreement. No transfer in violation of this
Section 4 shall be made or recorded on the books of WMC or Holding and any such
transfer shall be void and of no effect.

     Section 5. Right of First Refusal. If, following the Restricted Period, but
prior to a Public Offering, the Employee Stockholder or any Permitted Transferee
receives a bona fide offer to purchase any or all of his shares of Stock (the
"Offer") from a third party (the "Offeror") which the Employee Stockholder or
any such Permitted Transferee wishes to accept, the Employee Stockholder shall
cause the Offer to be reduced to writing and shall notify WMC, in the case of an
Offer to purchase Option Stock, or Holding, in the case of an Offer to purchase
Common Stock, in writing of his or her wish to accept the Offer. The Employee
Stockholder's notice shall contain an irrevocable offer to sell such shares of
Stock to WMC or Holding, as the case may be (in the manner set forth below), at
a purchase price equal to the price contained in, and on the same terms and
conditions of, the Offer, and shall be accompanied by a copy of the Offer (which
shall identify the Offeror). At any time within 30 days after the date of the
receipt by WMC or Holding of the Employee Stockholder's notice, WMC or Holding,
as the case may be, shall have the right and option to elect to purchase, or to
arrange for a third party (including WMC, Holding or Ripplewood) to elect to
purchase, all of the shares of Stock covered by the Offer either (i) at the same
price and on the same terms and conditions as the Offer or (ii) if the Offer
includes any consideration other than cash, then at the sole option of WMC or
its designee or Holding or its designee, as the case may be, at the equivalent
all cash price, determined in good faith by WMC's or Holding's, as the case may
be, Board of Directors, by delivering notice of such election to the Employee
Stockholder within such 30-day period. If WMC or Holding, as the case may be,
exercises such right, it shall deliver a certified bank check or checks in the
<PAGE>

                                                                               8

appropriate amount (and any such non-cash consideration to be paid) to the
Employee Stockholder or any Permitted Transferee (as the case may be) at the
principal office of WMC against delivery of certificates or other instruments
representing the shares of Stock so purchased, appropriately endorsed by the
Employee Stockholder and the Permitted Transferee, within 10 business days
following its election. If at the end of the 30-day period, WMC or Holding has
not notified the Employee Stockholder of its election in the manner set forth
above, the Employee Stockholder and the Permitted Transferee may, during the
succeeding 60-day period, sell not less than all of the shares of Stock covered
by the Offer to the Offeror at a price and on terms no less favorable to the
Employee Stockholder or the Permitted Transferee (as the case may be) than those
contained in the Offer. Promptly after such sale, the Employee Stockholder or
the Permitted Transferee (as the case may be) shall notify WMC or Holding, as
the case may be, of the consummation thereof and shall furnish such evidence of
the completion and time of completion of such sale and of the terms thereof as
may reasonably be requested by WMC or Holding. If, at the end of 60 days
following the expiration of the 30-day period for WMC or Holding to purchase the
Stock, the Employee Stockholder or the Permitted Transferee (as the case may be)
has not completed the sale of such shares of Stock as aforesaid, all the
restrictions on sale, transfer or assignment contained in this Agreement shall
again be in effect with respect to such shares of Stock.

     Section 6. Call Rights. (a) If, prior to the end of the Restricted Period,
(x) the Employee Stockholder's active employment with WMC (and/or, if
applicable, its subsidiaries) is terminated by WMC for Cause, (y) the
beneficiaries of an Employee Stockholder's Trust shall include any person or
entity other than the Employee Stockholder, his spouse or lineal descendants, or
(z) the Employee Stockholder (and any Permitted Transferees) shall effect a
transfer of any shares of Stock other than as permitted in this Agreement, then:

          (i) Holding shall have the right to purchase all or any portion of the
     Common Stock (other than the Assisted Shares) then held by the Employee
     Stockholder (and any Permitted Transferees) for a purchase price equal to
     the lesser of the Fair Market Value per share and the Book Value per share;

          (ii) WMC shall have the right to purchase all or any portion of the
     Option Stock then held by the Employee Stockholder (and any Permitted
     Transferees) for a purchase price equal to the lesser of the Option Price
     and the Book Value per Option; and

          (iii) All Options shall terminate without any payment.

          (iv) Holding shall have the right to purchase all or any portion of
     the Assisted Shares then held by the Employee Stockholder (and any
     Permitted Transferees) at a price equal to the lesser of (a) the purchase
     price per share ($.50) and (b) the Book Value per share.

     (b) If, prior to the expiration of the Restricted Period, the Employee
Stockholder's active employment with WMC is terminated without Cause or if the
Employee Stockholder quits or for Good Reason, then WMC may purchase all or any
portion of the Assisted Shares then held by the
<PAGE>

                                                                               9

Employee Stockholder (and any Permitted Transferees) at a price equal to the
Fair Market Value per share.

     (c) If, prior to the expiration of the Restricted Period, the Employee
Stockholder quits without Good Reason, then WMC will have the right to purchase
all or any portion of the Assisted Shares then held by the Employee Stockholder
(and any Permitted Transferees) for the lesser of (a) the purchase price per
share and the Fair Market Value per share.

     (d) If, prior to the expiration of the Restricted Period, the Employee
Stockholder's active employment with WMC (and/or, if applicable, its
subsidiaries) ceases for any reason other than termination by WMC for Cause or
termination due to the death or permanent disability (including if the Employee
Stockholder quits or resigns), then:

          (i) Holding shall have the right to purchase all or any portion of the
     Common Stock then held by the Employee Stockholder (and any Permitted
     Transferees) for a purchase price equal to the Fair Market Value per share;

          (ii) WMC shall have the right to purchase all or any portion of vested
     Options then held by the Employee Stockholder (and any Permitted
     Transferees) at a purchase price equal to the Fair Market Value per vested
     Option less the Option Price; provided that, if WMC exercises such
     repurchase right with respect to any Option that would have a repurchase
     price under this clause (b)(ii) of less than the Option Price at the time
     of such exercise, then such Options shall be canceled without any payment;

          (iii) WMC shall have the right to purchase all or any portion of the
     Option Stock then held by the Employee Stockholder (and any Permitted
     Transferees) at a purchase price equal to the Fair Market Value per share;
     and

          (iv) all unvested Options shall terminate without any payment
     therefor.

     (e) If the purchaser dies or becomes permanently disabled while still an
employee of WMC (and/or, if applicable, its subsidiaries), then (i) Holding may
purchase all or any portion of the shares of Common Stock then held by the
Employee Stockholder (and any Permitted Transferees) at a purchase price equal
to the Fair Market Value per share; and (ii) WMC ma purchase all of the Option
Stock then held by the Employee Stockholder (and any Permitted Transferees) at a
purchase price equal to the Fair Market Value per share less the Option Price
per share.

     (f) The price at which Stock or Options are purchased by WMC or Holding
pursuant to Sections 5(a), 5(b) and 5(c) is referred to as the "Purchase Price".
Any right to repurchase pursuant to Sections 5(a), 5(b) and 5(c) is referred to
as a "Call Right".

     (g) Absent the extension of a Call Right on account of a default under any
indebtedness agreement or violation of a statute as described in Section 5(f)
below, WMC or Holding, as the case may be, shall have a period of sixty (60)
days from the date of the event giving rise to the
<PAGE>

                                                                              10

Call Right (or if later, after the discovery of an impermissible transfer) in
which to give notice in writing to the Employee Stockholder of its election to
exercise its Call Rights pursuant to Sections 5(a), 5(b) or 5(c) (a "Call
Notice"); provided that, in the case of the Employee Stockholder's permanent
disability, such 60-day exercise period shall be extended to twelve (12) months
after the event giving rise to the Call Right; and provided further, that any
Call Right available in such case must be exercised within such 12-month period.

     (h) A Call Right shall be extended if WMC or Holding is, or would be as a
result of the payment of the Purchase Price, in default under any indebtedness
agreement or in violation of a statute. Any Call Right may be delayed upon such
default or violation of twelve (12) months thereafter; provided however, that,
if in connection with an event giving rise to a Call Right pursuant to Section
5(b), the exercise by WMC or Holding, as the case may be, of its Call Right is
delayed by reason of such default, then and only then will exercisable Options
be deemed to continue to be exercisable for the purposes of the purchase
pursuant to the Call Right and the Purchase Price for the Stock and Options will
be the higher of: (i) the Purchase Price determined as of the month end prior to
termination and (ii) the Purchase Price determined as of the month end prior to
the delayed purchase. In connection with a termination for Cause or any other
event giving rise to a Call Right pursuant to Section 6(a), the Purchase Price
for the Stock and Options shall be the lesser of (i) the Purchase Price
determined as of the month end prior to termination and (ii) the Purchase Price
determined as of the month end prior to the delayed purchase. Any Call Right may
only be delayed upon such default or violation for twelve (12) months
thereafter.

     (i) The completion of any purchase pursuant to this Section 5 shall take
place at the principal office of WMC on the tenth business day after the giving
of the Call Notice. The applicable Purchase Price shall be paid by delivery to
the Employee Stockholder (or the Permitted Transferee, as the case may be) of a
certified bank check or checks in the appropriate amount payable to the order of
the Employee Stockholder against delivery of certificates or other instruments
representing the Stock so purchased and appropriate documents canceling the
Options so terminated, appropriately endorsed or executed by the Employee
Stockholder (or the Permitted Transferee, as the case may be) or the Employee
Stockholder's or Permitted Transferee's authorized representative.

     (j) Subject to Section 5(f), the Purchase Price shall be calculated as of
the last day of the month preceding the month in which the event giving rise to
the Call Right occurs.

     (k) In determining the Purchase Price, appropriate adjustments shall be
made for any share dividends, splits, combinations, recapitalizations or any
other adjustment in the number of outstanding common stock in order to maintain,
as nearly as practicable, the intended operation of the provisions of this
Section 6.

     Section 7. Tag-Along Rights. (a) If prior to a Public Offering Ripplewood,
("Ripplewood") desires to transfer a majority or all of its shares of common
stock of Holding ("Holding Stock") to a prospective third party purchaser other
than to a Permitted Ripplewood/ Holding Transferee, Ripplewood shall, as a
condition to such transfer, (A) provide a notice to the Employee Stockholder in
writing (a "Tag-Along Notice") of the material terms of the proposed transfer at
<PAGE>

                                                                              11

least 14 days prior to such transfer and (B) permit the Employee Stockholder (or
cause the Employee Stockholder to be permitted) to sell (either to the
prospective transferee or to another financially reputable transferee reasonably
acceptable to the Employee Stockholder) the same portion of its outstanding
shares of Common Stock and Option Stock on the same terms and conditions,
subject to the same agreements and at the same price as the sale by Ripplewood
(in each case subject to Section 7(c)), which sale shall take place on the date
Ripplewood's shares of Holding Stock (or such portion) are transferred to such
transferee. To calculate the number of outstanding shares of Common Stock and
Option Stock that the Employee Stockholder can sell for the purposes of this
Section 7(a), WMC and Holding shall be treated as a single entity such that the
Employee Stockholder will be able to sell the product of (x) a fraction, the
numerator of which is the number of shares of common stock of Holding being sold
by Ripplewood, and the denominator of which is the total number of shares of
common stock of Holding owned by Ripplewood, multiplied by (y) the total number
of shares of Common Stock and Option Stock owned by the Employee Stockholder
(e.g., if Ripplewood is selling 75% of its interest in common stock of Holding,
the Employee Stockholder will be able to include 75% of its total ownership of
Common Stock and Option Stock, calculated as though WMC and Holding are a single
entity). Should the Employee Stockholder exercise his or her rights pursuant to
this Section 7(a), the Employee Stockholder shall be required to transfer Common
Stock and Option Stock held by him or her in the following order of priority:
(1) first, shares of Common Stock (until the Employee Stockholder holds no
shares of Common Stock), and (2) second, Option Stock (until the Employee
Stockholder holds no shares of Option Stock). The Employee Stockholder shall
have ten days from the date of receipt of a Tag-Along Notice to exercise his or
her right to sell pursuant to this Section 7(a) by delivering written notice to
Ripplewood of his or her intent to exercise such right. The Employee
Stockholder's right to sell in such transaction pursuant to the above shall
terminate if not exercised within such ten-day period.

     (b) If Holding sells a majority or all of its interest in WMC to a
prospective third party purchaser other than a Permitted Ripplewood/Holding
Transferee, Holding shall, as a condition to such transfer, (A) provide a notice
to the Employee Stockholder in writing (a "WMC Sale Tag-Along Notice") of the
material terms of the proposed transfer at least 14 days prior to such transfer
and (B) permit the Employee Stockholder (or cause the Employee Stockholder to be
permitted) to sell (either to the prospective transferee or to another
financially reputable transferee reasonably acceptable to the Employee
Stockholder) a number of its outstanding shares of Option Stock equal to (x) the
percentage of the outstanding shares of WMC Common Stock owned by Holding that
are being sold by Holding (e.g., if there are 2,000 shares of WMC Common Stock
outstanding of which Holding owns 1,800 shares and Holding is selling 180
shares, the percentage under this clause (x) will be 10%) multiplied by (y) the
number of shares of Option Stock owned by the Employee Stockholder. Subject to
Section 7(c), any such sale shall be on the same terms and conditions, subject
to the same agreements and at the same price as the sale by Holding, which sale
shall take place on the date Holding's shares of WMC Common Stock (or such
portion) are transferred to such transferee (or transferees). The Employee
Stockholder shall have ten days from the date of receipt of a WMC Sale Tag-Along
Notice to exercise his or her right to sell pursuant to this Section 7 by
delivering written notice to Holding of his or her intent to exercise such
right. The Employee Stockholder's right to sell in such transaction pursuant to
the above shall terminate if not exercised within such ten-day period.
<PAGE>

                                                                              12

     (c) The Employee Stockholder shall not have the right to transfer any
Options pursuant to this Section 7.

     Section 8. Drag-Along Rights. (i) If at any time Ripplewood desires to
transfer all or any portion of its shares of Holding Stock to any third party
purchaser(s), other than Permitted Ripplewood/Holding Transferees, or Holding
desires to transfer all or any portion of its shares of WMC Common Stock to any
third party purchaser(s), other than Permitted Ripplewood/Holding Transferees,
Ripplewood shall have the right to require that the Employee Stockholder and its
Permitted Transferees transfer the same portion of the Employee Stockholder's
and its Permitted Transferees' shares of Common Stock and Option Stock to such
third party purchaser(s) on the same terms and conditions, subject to the same
agreements and at the same price as the sale by Ripplewood. To calculate the
number of outstanding shares of Common Stock and Option Stock that the Employee
Stockholder and its Permitted Transferees can be required to sell pursuant to
this Section 8, WMC and Holding shall be treated as a single entity such that
the Employee Stockholder and its Permitted Transferees (considered as a single
stockholder for this purpose) can be required to sell the product of (x) a
fraction, the numerator of which is the number of shares of Holding Stock being
sold by Ripplewood, and the denominator of which is the total number of shares
of Holding Stock owned by Ripplewood, multiplied by (y) the total number of
shares of Common Stock and Option Stock owned by the Employee Stockholder and
its Permitted Transferees (e.g. if Ripplewood is selling 75% of its interest in
Holding Stock, Ripplewood will have the right to require that the Employee
Stockholder and its Permitted Transferees transfer 75% of their total aggregate
ownership of Common Stock and Option Stock, calculated as though WMC and Holding
are a single entity). Should Ripplewood exercise its rights pursuant to this
Section 8, the Employee Stockholder and its Permitted Transferees shall be
required to transfer Common Stock and Option Stock held by them in the following
order of priority: (1) first, shares of Common Stock (until the Employee
Stockholder and its Permitted Transferees hold no shares of Common Stock), and
(2) second, Option Stock (until the Employee Stockholder and its Permitted
Transferees hold no Option Stock). Ripplewood shall provide a notice to the
Employee Stockholder in writing (a "Drag-Along Notice") of such sale at least 10
days prior to such transfer, and the Drag-Along Notice shall identify such third
party purchaser(s), all material terms of the sale and the date of closing. Upon
the closing of any sale by Ripplewood of all (or such portion) of its shares of
Holding Stock or any sale by Holding of WMC Common Stock, as described in a
Drag-Along Notice, such third party purchaser(s) shall pay to the Employee
Stockholder and/or its Permitted Transferees, as the case may be, the
consideration payable to the Employee Stockholder and/or its Permitted
Transferees, as the case may be, in connection with such sale of all (or such
portion) of its shares of Common Stock and Option Stock, and the Employee
Stockholder's and its Permitted Transferee's shares of Common Stock and Option
Stock (or such portion) shall be deemed transferred to such third party
purchaser(s).

     Section 9. Sale Participation Rights. At any time following the expiration
of the period ending 180-days after a Public Offering, the Employee Stockholder
and its Permitted Transferees will have the right to sell all or any portion of
the Stock held by such Employee Stockholder and its Permitted Transferees in any
registered offering of WMC Common Stock initiated by WMC, Holding or Ripplewood.
Such registration rights will be on customary terms and conditions
<PAGE>

                                                                              13

(including, without limitation, customary cut back and lock-up provisions)
established in good faith by WMC's or Holding's Board of Directors and
Ripplewood and notified to the Employee Stockholder and the Other Employee
Stockholders.

     Section 10. Voting Agreement. (a) From and after the Closing Date, the
Employee Stockholder and its Permitted Transferees: (i) shall vote all of the
shares of Stock held by him, her or it (including, without limitation, shares
acquired after the date hereof) in the same manner as the shares of Holding held
by Ripplewood (in the case of Holding Stock) or Holding (in the case of WMC
Common Stock) are voted on all matters acted upon at any annual or special
meeting of Stockholders or by written consent in lieu of a meeting and (ii)
irrevocably constitutes and appoints the person who is at the time the Senior
Managing Director of Ripplewood Holdings (or his or her designee, with full
power of substitution) his proxy to vote all of the shares of Common Stock held
by the Employee Stockholder in the same manner as the shares of Holding Stock
held by Ripplewood and appoints the person who is at the time the Chief
Executive Officer of WMC (or his or her designee, with full power of
substitution) his proxy to vote all of the shares of Option Stock held by the
Employee Stockholder and its Permitted Transferees in the same manner as the
shares of WMC Common Stock held by Holding are voted on all matters acted upon
at any annual or special meeting of stockholders or by written consent in lieu
of a meeting; provided that this Section 10 shall be inapplicable with respect
to any matters which would both adversely affect the rights of shares of Stock
held by the Employee Stockholder (or its Permitted Transferees) and treat the
Employee Stockholder (or its Permitted Transferees) differently from other
holders of shares of WMC Common Stock or Holdings Stock (it being understood
that a conversion of Holding to a limited liability company and a merger or
other business combination of Holding and WMC will not be deemed to adversely
affect the rights of the Employee Stockholder (or its Permitted Transferees) and
the Employee Stockholder hereby agrees that his or her shares of Common Stock
will be voted in favor of any such action). The voting agreements and proxies
granted pursuant to this Section 10 are coupled with an interest and shall be
valid for the term of this Agreement. The Employee Stockholder represents that
he or she has not granted and is not party to any proxy, voting trust or other
agreement which in each case is inconsistent with or conflicts with the
provisions of this Agreement, and the Employee Stockholder shall not grant any
proxy or become a party to any voting trust or other agreement which in each
case is inconsistent with or conflicts with the provisions of this Agreement.

     Section 11. Rights to Negotiate Repurchase Price. Nothing in this Agreement
shall be deemed to restrict or prohibit WMC or Holding from purchasing Stock or
Options from the Employee Stockholder or its Permitted Transferees (or any other
Employee Stockholder), at any time, upon such terms and conditions, and for such
price, as may be mutually agreed upon between the Parties, whether or not at the
time of such purchase circumstances exist which specifically grant WMC or
Holding the right to purchase Stock or Options.

     Section 12. Covenant Regarding 83(b) Election. Except as WMC may otherwise
agree in writing, the Employee Stockholder hereby covenants and agrees that he
will make an election provided pursuant to Treasury Regulation 1.83-2 with
respect shares of Option Stock to be acquired upon each exercise of the Employee
Stockholder's Options; and the Employee Stockholder further
<PAGE>

                                                                              14

covenants and agrees that he or she will furnish WMC with copies of the forms of
election the Employee Stockholder files and within 30 days after each exercise
of the Employee Stockholder Options and with evidence that each such election
has been filed in a timely manner.

     Section 13. Notice of Change of Beneficiary. Immediately prior to any
transfer of shares of Stock to an Employee Stockholder's Trust, the Employee
Stockholder shall provide WMC and Holding with a copy of the instruments
creating the Employee Stockholder's Trust and with the identity of the
beneficiaries of the Employee Stockholder's Trust. The Employee Stockholder
shall notify WMC and Holding as soon as practicable prior to any change in the
identity of any beneficiary of the Employee Stockholder's Trust.

     Section 14. Recapitalizations, etc. The provisions of this Agreement shall
apply, to the full extent set forth herein with respect to Stock or the Options,
to any and all shares of capital shares of WMC and Holding or any capital stock,
partnership units or any other security evidencing ownership interests in any
successor or assign of WMC and Holding (whether by merger, consolidation, sale
of assets or otherwise) which may be issued in respect of, in exchange for, or
substitution of Stock or Options, by reason of any share dividend, split,
reverse split, combination, recapitalization, liquidation, reclassification,
merger, consolidation or otherwise.

     Section 15. State Securities Laws. WMC and Holding hereby agree to use
their best efforts to comply with all state securities or "blue sky" laws which
might be applicable to the sale of Stock and the issuance of the Options to the
Employee Stockholder.

     Section 16. Binding Effect. The provisions of this Agreement shall be
binding upon and accrue to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns. In the case of
a transferee permitted under Section 3(a) hereof, such transferee shall be
deemed the Employee Stockholder hereunder; provided, however, that no transferee
(including without limitation, transferees referred to in Section 3(a) hereof)
shall derive any rights under this Agreement unless and until such transferee
has delivered to WMC and Holding a valid undertaking and becomes bound by the
terms of this Agreement.

     Section 17. Amendment. This Agreement may be amended only by a written
instrument signed by the Parties hereto. Notwithstanding the foregoing, this
Agreement may be amended without the consent of any party hereto other than WMC
to provide for any change in the corporate structure of WMC, including its
conversion to a limited liability company or a merger or other business
combination of Holding and WMC.

     Section 18. Closing. Except as otherwise provided herein, the closing of
each purchase and sale of Stock and the payment of the Purchase Price by WMC or
Holding upon exercise of a Call Right, if any, pursuant to this Agreement shall
take place at the principal office of WMC on the tenth business day following
delivery of the notice by any Party of its exercise of the right to purchase or
sell such Stock or Options hereunder, as the case may be.

     Section 19. Applicable Law. The laws of the state of Delaware shall govern
the interpretation, validity and performance of the terms of this Agreement. Any
suit, action or proceeding against
<PAGE>

                                                                              15

the Employee Stockholder, WMC or Holding, with respect to this Agreement, or any
judgment entered by any court in respect of any thereof, may be brought in any
court of competent jurisdiction in the State of Delaware and the Parties each
hereby submit to the exclusive jurisdiction of such courts for the purpose of
any such suit, action, proceeding or judgment. The Parties hereby irrevocably
waive any objections which either of them may now or hereafter have to the
laying of the venue of any suit, action or proceeding arising out of or relating
to this Agreement brought in any court of competent jurisdiction in the State of
Delaware, and hereby further irrevocably waive any claim that any such suit,
action or proceeding brought in any such court has been brought in any
inconvenient forum. No suit, action or proceeding against any of the Parties
with respect to this Agreement may be brought in any court, domestic or foreign,
or before any similar domestic or foreign authority other than in a court of
competent jurisdiction in the State of Delaware, and the Parties hereby
irrevocably waive any right which any of them may otherwise have had to bring
such an action in any other court, domestic or foreign, or before any similar
domestic or foreign authority. Each Party hereto hereby irrevocably and
unconditionally waives trial by jury in any legal action or proceeding in
relation to this Agreement and for any counterclaim therein.

     Section 20. Assignability of Certain Rights by WMC, Holding and Ripplewood.
WMC, Holding and Ripplewood shall have the right to assign any or all of their
rights or obligations to purchase Stock or Options pursuant to this Agreement;
provided, however, that such assigning party shall remain obligated to perform
its obligations notwithstanding such assignment in the event that such assignee
fails to perform the obligations so assigned to it. The rights and obligations
of WMC, Holding and Ripplewood under this Agreement shall insure to the benefit
of, and be binding upon, any of their respective successors.

     Section 21. Conflicts with Other Agreements. In the event that any
provision of this Agreement conflicts in any way with the Plan or the provisions
of any Stock Option Agreement to which the Employee Stockholder is a party or
bound, the provisions of this Agreement shall govern.

     Section 22. Miscellaneous. (a) In this Agreement all references to
"dollars" or "$" are to United States dollars.

     (b) If any provision of this Agreement shall be declared illegal, void or
unenforceable by any court of competent jurisdiction, the other provisions shall
not be affected, but shall remain in full force and effect.

     (c) WMC and Holding shall have the right to deduct from any cash payment
made under this Agreement to the Employee Stockholder any federal, state or
local income or other taxes required by law to be withheld with respect to such
payment.

     Section 23. Notices. All notices and other communications provided for
herein shall be in writing and shall be deemed to have been duly given if
delivered by hand (whether by overnight courier or otherwise) or sent by
registered or certified mail, return receipt requested, postage prepaid, or by
overnight delivery or telecopy, to the Party to whom it is directed:
<PAGE>

                                                                              16

     (a) If to WMC, to it at the following address:

         Western Multiplex Corporation
         1196 Borregas Avenue
         Sunnyvale, CA 94089
         Attn: Kim Viera
         Facsimile: 408-542-5300

         with a copy to:

         Simpson Thacher & Bartlett
         3373 Hillview Avenue
         Suite 250
         Palo Alto, CA 94304
         Attn: Daniel Cilvner, Esq.
         Facsimile: 650-251-5002

     (b) If to Holding, to it at the following address:

         WMC Holding Corp.
         101 California Street
         Suite 2825
         San Francisco, CA 94111
         Attn: Jeffrey M. Hendren
         Facsimile: 415-772-9289

         with a copy to:

         Simpson Thacher & Bartlett
         3373 Hillview Avenue
         Suite 250
         Palo Alto, CA 94304
         Attn: Daniel Cilvner, Esq.
         Facsimile: 650-251-5002

     (c) If to Ripplewood, to it at the following address:

         Ripplewood Partners, L.P.
         One Rockefeller Plaza
         New York, NY 10020
         Attn: Jeffrey M. Hendren
         Facsimile: 212-218-2721

     (d) If to the Employee Stockholder, to him at the address set forth below
under his signature; or at such other address as either party shall have
specified by notice in writing to the other.

     Section 24. Expiration of Section Provisions. The provisions contained in
Sections 5, 6 and 7 and any portion of any other provision of this Agreement
which incorporates the provisions of Sections 5, 6 and 7 shall terminate and be
of no further force or effect with respect to any shares of Stock sold by the
Employee Stockholder or any Permitted Transferee pursuant to any Public
Offering.
<PAGE>

                                                                              17

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                                 WESTERN MULTIPLEX CORPORATION

                                               By: /s/ Jeffrey M. Hendren
                                                  -----------------------------
                                                  Name: Jeffrey M. Hendren
                                                  Title: Vice President

                                                       WMC HOLDING CORP.

                                               By: /s/ Jeffrey M. Hendren
                                                  -----------------------------
                                                  Name: Jeffrey M. Hendren
                                                  Title: Vice President

                                                   RIPPLEWOOD PARTNERS, L.P.

                                               By: /s/ Jeffrey M. Hendren
                                                  -----------------------------
                                                  Name: Jeffrey M. Hendren
                                                  Title: Principal

EMPLOYEE STOCKHOLDER                                   190,000
                                        Number of shares of Class A Common Stock
/s/ Amir Zoufonoun                      of WMC Holding Corp. to be purchased
-----------------------
Name:   Amir Zoufonoun

Address:                                               950,000
887 N. Central Ave.                    Number of Assisted Shares to be
Campbell, CA     95008                 guaranteed by Western Multiplex
                                       Corporation

                                                       1,330,000
                                        Number of Options to purchase share of
                                        Class A Common Stock of Western
                                        Multiplex Corp. being granted

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