Document:

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                                                                    Exhibit 4.26

             CONFIDENTIAL TREATMENT REQUESTED PURSUANT TO RULE 24B-2

        Certain portions, indicated by [*****], of this exhibit have been
         omitted pursuant to Rule 24b-2 of the Securities Act of 1934.
             The omitted materials have been filed separately with
                    the Securities and Exchange Commission.

                     LICENSE, SERVICES & PURCHASE AGREEMENT

This LICENSE, SERVICES & PURCHASE AGREEMENT (the "Agreement") dated as of
December 22, 2003 (the "Effective Date") is between UTStarcom, Inc., a Delaware
corporation with principal place of business is at 1275 Harbor Bay Parkway,
Suite 100, Alameda, California, U.S.A. 94502 (the "Licensee"), and Spectrum
Signal Processing, Inc, a British Columbia, Canada corporation with a principal
place of business at 2700 Production Way, Suite 200, Burnaby, British Columbia,
Canada V5A 4X1 (the "Licensor"), collectively, (the "Parties").

                                    RECITALS

         WHEREAS, the Licensor desires to license to Licensee the intellectual
property related to the aXs.623 packet processor technology of the Licensor; and

         WHEREAS, the Licensor desires to negotiate with Licensee a subsequent
technical support and maintenance agreement relating to the Intellectual
Property; and

         WHEREAS, the Licensor desires to sell to Licensee a specified quantity
of Licensor product modules to Licensee as a "last-time buy" by Licensee;

         NOW, THEREFORE, in consideration of the covenants, agreements,
representations, and warranties contained in this Agreement, the parties hereto
hereby agree as follows:

                                   ARTICLE I

          INTELLECTUAL PROPERTY LICENSE; SERVICE AGREEMENT PROVISIONS;
                         FEES; LAST-TIME BUY PROVISIONS

                  1.1 License of Intellectual Property. Subject to the terms and
conditions of this Agreement, on or before 12:00 P.M., California time, December
23, 2003 (the "Closing Date"), the Licensor shall:

                           (a)      license all of the Licensor's technology
                                    design specifications relating co Licensor's
                                    aXs.623 product ("Intellectual Property") as
                                    further described and on the terms specified
                                    in Schedule 1

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                                    to this Agreement, which is hereby
                                    incorporated into this Agreement by
                                    reference thereto;

                           (b)      obtain the written consent of all
                                    third-party software licensors permitting
                                    Licensee's rights to use third party
                                    software embedded in the Intellectual
                                    Property, as listed in Schedule 2 to this
                                    Agreement, which is hereby incorporated into
                                    this Agreement by reference thereto.
                                    Licensor hereby agrees that the execution of
                                    such consents shall be a condition precedent
                                    to Licensee's duty to perform its
                                    obligations pursuant to this Agreement;

                           (c)      provide a manufacturing package, to be
                                    delivered on the Closing Date, which
                                    includes all of the information required to
                                    procure parts, kit, assemble and test the
                                    ]Intellectual Property and as further
                                    described in Schedule 3 to this Agreement,
                                    which is hereby incorporated into this
                                    Agreement by reference thereto;

                           (d)      provide any and all other material or
                                    information necessary for the continued
                                    availability, commercial viability and
                                    manufacturability of the Intellectual
                                    Property.

                  1.2 Technical. Support and Maintenance. Licensor and Licensee
hereby agree to negotiate and execute a separate agreement effective as of the
Closing Date which will cover general technical support and maintenance of all
Intellectual Property described in Article 1.1 of this Agreement the form of
which is attached in Schedule 4 to this Agreement, which is hereby incorporated
into this Agreement by reference thereto.

                  1.3 Engineering Development Services. At Licensee's
discretion, additional engineering resources may be made available for
engineering development activities which may include hardware and software
development. The terms and conditions of such services shall be determined in a
separate agreement mutually agreed upon by the Parties.

                  1.4 Excluded Assets. Notwithstanding any other provision of
this Agreement, the Licensor shall retain and shall not license, or otherwise
transfer, to Licensee any other assets not otherwise specified in this
Agreement.

                  1.5 No Assumption of Liabilities or Obligations.
Notwithstanding anything to the contrary in this Agreement, the Licensee shall
not assume any liabilities or obligations of the Licensor and nothing herein
shall be construed as imposing any liability or obligation upon the Licensee
other than those specifically provided for herein.

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                  1.6 License Fee. The license fee paid for the Intellectual
Property described in Article 1.1 of this Agreement shall be [*****] (the
"License Fee"), payable to the Licensor by the Licensee as of the Closing Date
by way of wire transfer with wire transfer instructions to be provided by
Licensor.

                  1.7 Payment for Technical Support and Maintenance. The total
consideration for the Technical Support and Maintenance Agreement described in
Article 1.2 will be no more than [*****] per calendar quarter (the "Quarterly
Payment"), beginning with payment for the fourth quarter of 2003. for a minimum
of 3 quarters, with a Quarterly Payment made in advance of each calendar
quarter. Upon the mutual execution of the Technical Support and Maintenance
Agreement. Licensee shall forthwith pay Licensor [*****] for services rendered
during the fourth calendar quarter of 2003. Additional quarters of support
beyond the end of the second quarter of calendar of 2004 may be purchased by
Licensee at its option by giving eight weeks prior notice of its intent to
purchase such support for the ensuing calendar quarter.

                  1.8 Last Time Purchase. The Parties acknowledge that there is
currently an outstanding and .unfulfilled Purchase Order (P.O.) that the Parties
agree to be fulfilled as follows:

                           (a)      P.O. PUS35034, dated September 9, 2003 for
                                    [*****] aXs.623 [*****] will be cancelled
                                    upon full execution of this Agreement.

                           (b)      A new purchase order, at currently quoted
                                    prices and conditions, will be submitted
                                    within 7 days of the Effective Date for
                                    aXs.623C modules in the minimum quantities
                                    of C8 - [*****], C5 - [*****] and C4 -
                                    [*****] for a minimum amount of [*****] (the
                                    "Last Time Purchase"). Shipment for all
                                    modules of the Last Time Purchase shall be
                                    no later than March 31, 2004, title shall
                                    pass CIP Spectrum, and payment to Licensor
                                    shall be pursuant to the Parties standard
                                    terms and conditions of prior payments made.
                                    Due to the nature of this purchase, Seller
                                    hereby specifically warrants that such
                                    modules shall be delivered. in a
                                    commercially-ready form, free of any
                                    material defects or errata. Such warranty
                                    shall hereby supercede any other warranties
                                    (or disclaimers thereof) as may have been
                                    otherwise agreed to between the Parties. Any
                                    Last Time Purchase modules requiring
                                    warranty repair shall be subject to the
                                    Licensor's standard warranty repair
                                    procedure.

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                                   ARTICLE II

                 REPRESENTATIONS AND WARRANTIES OF THE LICENSOR

         Except as otherwise set forth in the schedules attached to this
Agreement by reference to specific sections of this Agreement, the Licensor
represents and warrants to the Licensee as set forth below:

         2.1 Organization and Good Standing. The Licensor is a corporation duly
organized, validly existing, and in good standing under the laws of British
Columbia, Canada, and is duly qualified to transact business as a. foreign
corporation and is in good standing in every jurisdiction in which the conduct
of its business requires it to be so qualified.

         2.2 Authorization. The Licensor has full corporate power and authority
to enter into this Agreement, and all exhibits and schedules hereto, to perform
its obligations hereunder and thereunder, to license the Intellectual Property,
and to carry out the transactions contemplated hereby and thereby. The Board of
Directors of the Licensor has taken, or will take before the Closing Date, all
actions required by law, its Certificate of Incorporation, its By-Laws or
otherwise to authorize (i) the execution and delivery of this Agreement and the
attached schedules, and (ii) the performance of its obligations hereunder and
thereunder. This Agreement has been duly executed and delivered by the 'Licensor
and upon the execution and delivery of the Agreement and associated schedules by
a duly authorized officer of the Licensor, and this Agreement and associated
schedules will be, upon due execution and delivery thereof, the legal, valid,
and binding obligations of the Licensor enforceable according to their terms.

         2.3 Licensed Assets. The Licensor owns, with the exception of any third
party software, and has good and marketable title to all Intellectual Property,
free and clear of all mortgages, pledges, security interests, conditional sales,
or other title retention agreements, encumbrances, liens, easements, claims,
rights of way, warrants, options, or charges of any kind in writing
(collectively hereinafter referred to as "LIENS"). The Licensor has full power
and authority with respect to any third parties. the right to license the
Intellectual Property to the Licensee.

         2.4 No Violation. None of (i) the execution and delivery of this
Agreement by the Licensor, (ii) the performance by the Licensor of its
obligations hereunder or thereunder, (iii) the consummation of the transactions
contemplated hereby or thereby after the Closing bate, will (A) violate any
provision of the Articles of Incorporation or By-Laws of the Licensor; (B) to
Licensor's knowledge, after investigation, violate, or be in conflict with, or
constitute a default under or breach of, or permit the termination of, or cause
the acceleration. of the maturity of, any Lien, indenture, mortgage, contract,
commitment, debt, or obligation of the Licensor:. (C) require the consent of any
other party to or to Licensor's knowledge, after investigation, result in the
creation or imposition of any Lien upon any of the intellectual Property; (I))
to Licensor's knowledge, after investigation. violate any statute, law,
judgment, decree, order, regulation, or rule of any court or governmental
authority to which the Licensor or the

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Intellectual Property are subject; or (E) to Licensor's knowledge, after
investigation, result in the loss of toy material license, privilege, tight, or
certificate relating to the Intellectual Property.

         2.5 Consents and Approvals of Governmental Authorities. No consent,
approval, or authorization of. or declaration, filing, or registration with, any
governmental or regulatory authority is required to be made or obtained by the
Licensor in connection with the execution, delivery, and performance of this
Agreement or any of the associated schedules by the Licensor.

         2.6 Intellectual Property. The Licensor owns, is licensed, or otherwise
has the full right to use, with respect to the Intellectual Property relating to
the aXs.623, all (i) United States and foreign patents (including design
patents, industrial designs and utility models) and patent applications
(including docketed patent disclosures awaiting filing, reissues, divisions,
continuations-in-part and extensions), patent disclosures awaiting filing
determination, inventions and improvements thereto; (ii) trademarks, service
marks, trade names, trade dress, logos, business and product names. slogans, and
registrations and applications for registrations thereof; (iii) copyrights
(including software) and registrations and applications for registration
thereof; (iv) inventions, processes, designs, formulae, trade secrets, know-how,
industrial models, confidential and technical information, manufacturing,
engineering and technical drawings, product specifications and confidential
business information; and (v) intellectual property rights similar to any of the
foregoing. Licensor hereby represents that, to its knowledge, after
investigation, it has the sole and exclusive right to use the Intellectual
Property. and, other than those consents gained by Licensor pursuant to Section
1.1(b) of this Agreement, to its knowledge, after investigation, no consent of
any third party is required for the use thereof by the Licensee upon completion
of the licensing of the Intellectual Property. No claims have been asserted by
any person to the use of any Intellectual Property, and Licensor represents that
to its knowledge after investigation, there is no valid basis for any such
claims. The Licensor is not aware of any facts or alleged facts indicating that
the use of the Intellectual Property by the Licensor infringes on the rights of
any other third party whatsoever.

         2.7 Operation. The technology relating to the Licensor's aXs.623
operates properly and in substantial compliance with the specifications
developed by the Licensor and is free from material defects in design and
workmanship. The documentation to be licensed to Licensee is current, accurate
and, to the best of the Licensor's knowledge, contains no material errors or
omissions,

         2.8 Disclosure. To the best of its knowledge, no representation or
warranty by the Licensor in this Agreement or any schedules thereto, contains or
will contain any untrue statement of a material fact or omits or will omit to
state any material fact necessary to make the statements herein or therein not
misleading. There is no fact known to the Licensor that materially adversely
affects, or that might in the future materially adversely affect, the
operations, business, assets, properties, or condition, financial or otherwise,
of the Licensor that has not been set forth in this Agreement or any schedules
thereto.

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                                  ARTICLE III

                 REPRESENTATIONS AND WARRANTIES OF THE LICENSEE

         The Licensee hereby represents and warrants to the Licensor as set
forth below:

                  3.1 Corporate Organization. The Licensee is on the date
hereof, and will be on the Closing Date, a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified to transact business as a foreign corporation .and is in good
Standing in every jurisdiction in which the conduct of its business requires it
to be so qualified.

                  3.2 Authorization. The Licensee has full corporate power and
authority to enter into this Agreement, and all exhibits and schedules hereto,
to which it is or will be a party, to perform its obligations hereunder and
thereunder, and to carry out the transactions contemplated hereby and thereby.
The Board of Directors of the Licensee has taken, or will take before the
Closing Date, all actions required by law, its Certificate of Incorporation, its
By-Laws or otherwise to authorize (i) the execution and delivery of this
Agreement and the attached schedules, and (ii) the performance of its
obligations hereunder and thereunder. This Agreement has been duly executed and
delivered by the Licensee and upon the execution and delivery of the Agreement
and associated schedules by a duly authorized officer of the Licensee, and this
Agreement and associated schedules will be, upon due execution and delivery
thereof, the legal, valid, and binding obligations of the Licensee enforceable
according to their terms.

                  3.3 Consents and Approvals of Governmental Authorities. No
consent, approval, or authorization of, or declaration, filing, or registration
with, any governmental or regulatory authority is required to be made or
obtained by the Licensee in connection with the execution, delivery, and
performance of this Agreement or any of the associated schedules by the
Licensee.

                                   ARTICLE IV

                           OBLIGATIONS OF THE PARTIES

         The Licensor hereby covenants and agrees with the Licensee and the
Licensee hereby covenants and agrees with the Licensor that:

                  4.1 Prohibited Transactions Before Closing Date. Before the
Closing Date, except as otherwise contemplated by this Agreement or permitted by
the prior written consent of the Licensee, the Licensor shall not cake any
action whatsoever which would violate Seller's representations and warranties as
stated in Article II of this Agreement.

                  4.2 Further Assurances. Before and after the Closing Date,
each party hereto shall execute and deliver such instruments and take such other
actions as any other party may reasonably request for the purpose of carrying
out the intent of this Agreement. Each party hereto shall use its best efforts
to cause the transactions contemplated by this

                                     Page 6
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Agreement to be consummated, and, without limiting the generality of the
foregoing, to obtain all consents and authorizations of government agencies and
third parties and to make all filings with and give all notices to government
agencies and third parties that may be necessary or reasonably required to
effect the transactions contemplated by this Agreement. The Licensor shall give
prompt notice to the Licensee, after receipt thereof by the Licensor, of any
notice or other communication from any third parry alleging that the consent of
such third party is or may be required in connection with the transactions
contemplated by this Agreement.

                  4.3 Confidentiality. Before and after the Closing Date, each
party to this Agreement shall, and shall cause its officers, accountants,
counsel, and other authorized representatives and affiliated parties, to hold in
strict confidence and not use or disclose to any other party without the prior
written consent of the other party, all information obtained from the other
parties in connection with the transactions contemplated hereby, except such
information may be used or disclosed (i) when required by any regulatory
authorities or governmental agencies, (ii) if required by court order or decree
or applicable law. (iii) if it is publicly available other than as a result of a
breach of this Agreement, (iv) if it is otherwise contemplated herein, or (v) by
the Licensee from and after the Closing Date to the extent related to full use
of the Intellectual Property as contemplated by this Agreement and associated
schedules.

                                   ARTICLE V

                                 INDEMNIFICATION

                  5.1 Indemnity. Licensor will defend or settle any suit or
proceeding brought against Licensee based upon a claim that the Intellectual
Property licensed hereunder or part thereof, except third parry software, alone
and not in combination with any other product or software, constitutes an
infringement of any United States patent or copyright provided that: (i)
Licensor is notified promptly in writing of such claim; (ii) Licensor controls
the defense or settlement of the claim; and (iii) Licensee cooperates
reasonably, and gives all necessary authority. information and assistance at
Licensor's expense. Licensor will pay all damages and costs finally awarded
against Licensee, but Licensor will not be responsible for any costs, expenses
or compromise incurred or made by Licensee without Licensor's prior written
consent. If the use of such Intellectual Property is permanently enjoined,
Licensor will, in its sole discretion and at its own expense, procure for
Licensee the right to continue using said Intellectual Property, replace same
with non-infringing Intellectual Property, modify it so that it becomes
non-infringing or if Licensor is unable to reasonably do any of the above,
Licensor will credit Licensee the sum paid to Licensor by Licensee for the
infringing Intellectual Property less any depreciation and accept its return.

Licensor shall have no liability to Licensee, and Licensee will indemnify and
hold Licensor harmless form any expenses, damages, costs or losses resulting
from, or with respect to, any proceeding or claim based on the infringement of
any patent, copyright or trade secret to the extent the proceeding or claim is
based upon (i) the combination, use, or operation of the Intellectual Property
in connection or combination with any

                                     Page 7
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equipment, devised or software not delivered by Licensor, if such infringement
would have been avoided in the absence of such combination, or (ii) the
modification by Licensee or any third party of the Intellectual Property; (iii)
Licensee's technology, or compliance by Licensor with specifications provided by
Licensee: (iv) use of the Intellectual Property, or any part of the Intellectual
Property, in the practice of a process; (v) compliance by Licensor with ITU or
IEEE standards; or (vi) the failure to use materials or instructions provided by
Licensor which would have rendered the Intellectual Property non-infringing.

The foregoing states the entire obligation and exclusive remedy of each of the
parties hereto with respect to any Intellectual Property furnished hereunder.

                                   ARTICLE VI

                                   TERMINATION

                  6.1 Termination. This Agreement will commence upon the
Effective Date and will remain in effect until terminated. Licensor will
immediately terminate this Agreement upon 30 days written notice to Licensee if
Licensee fails to comply with the license grant obligations in paragraph 1.1(a),
payment provisions for the Licensing Fee, technical support and maintenance fees
and last time buy payment provisions contained in paragraphs 1.6, 1.7 and
1.8(b), confidentiality obligations in paragraph 4.2. Any payment obligations
accruing prior to such termination will remain due and owing. Upon termination
of this Agreement, (i) the licenses, rights and covenants granted hereunder and
the obligations imposed hereunder will cease, except as otherwise expressly
provided for herein, and Licensee will destroy the Intellectual Property,
including all copies and all relevant documentation. The provisions that survive
any termination or expiration of this Agreement shall not imply or create any
continued right to use the Intellectual Property after termination of this
Agreement.

                                  ARTICLE VII

                                OTHER AGREEMENTS

                  7.1 Amendment and Modification; Waiver of Compliance. Subject
to the applicable law, this Agreement may be amended, modified, and supplemented
only by written agreement signed by the Licensee and the Licensor. Any failure
by' any party to this Agreement to comply with any obligation, covenant,
agreement, or condition contained herein may be expressly waived in writing by
the other parties hereto, but such waiver or failure to insist upon strict
compliance shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure. Whenever this Agreement requires or permits consent
by or on behalf of any party hereto, such consent shall be given in a manner
consistent with the requirements for a waiver of compliance as set forth in this
Section 9.1.

                  7.2 Fees and Expenses. Except as otherwise provided herein,
each of the parties hereto will pay its own fees and expenses (including
attorneys' and accountants'

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fees, legal costs, and expenses) incurred in connection with this Agreement, and
all exhibits and schedules hereto, and the consummation of the transactions
contemplated hereby and thereby.

                  7.3 Notices. All notices, requests, demands, and other
communications required or permitted hereunder shall be in writing and shall be
deemed to have been given if delivered by hand, overnight courier, or mailed
certified or registered mail with postage prepaid as follows.

        (a) If to the Licensee, to:
     Attention: Russell Boltwood
     With a copy to:
     Attention.: James Nysather

        (b) If to the Licensor, to:
     Attention: Legal Department
     With a copy to:
     Attention: President

                  7.4 Public Announcements. Neither the Licensee nor the
Licensor nor the representatives of any of them shall make any public
announcement with respect to this Agreement, the associated schedules, or the
transactions contemplated hereby or thereby without the prior written consent of
the other parties. Notwithstanding the foregoing either party may make such
announcements as are required by securities regulators such as the British
Columbia Securities Commission, the Ontario Securities Commission and the United
States Securities and Exchange Commission.

                  7.5 Assignment. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but neither this Agreement
nor any of the rights, interest, or obligations hereunder shall be assigned by
any of the parties hereto without the prior written consent of all the other
parties, such consent not to be unreasonably withheld.

                  7.6 Governing Law. This Agreement and the legal. relations
between the parties hereto shall be governed by, and construed in accordance
with, the laws of the State of California, without reference to the conflict of
laws principles thereof.

                  7.7 Counterparts. This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

                  7.8 Headings. The headings contained in this Agreement are
inserted for convenience only and shall not constitute a part hereof.

                  7.9 Entire Agreement. This Agreement, including the schedules
attached hereto, and other documents referred to herein which form a part
hereof, embody the entire agreement and understanding of the parties hereto in
respect of the subject matter contained herein and supersede all prior
agreements and understandings between the

                                     Page 9
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parties with respect to such subject matter, including. by way of illustration
and not by limitation, any term sheet agreed to by the parties hereto before the
date hereof. There are no restrictions, promises, warranties, covenants, or
undertakings other than those expressly set forth or referred to herein.

                  7.10 Definitional Provisions. All terms defined in this
Agreement shall have such defined meanings when used in any exhibit, schedule,
or any certificate or other document made or delivered pursuant hereto or
thereto, unless otherwise defined therein.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duty executed on the day and year first above stated.

SPECTRUM SIGNAL PROCESSING INC.          UTSTARCOM, INC.

By:    /s/ Pascal Spothelfer             By:    /s/ Russell Boltwood
       ------------------------------           --------------------------------
Name:  Pascal Spothelfer                 Name:  Russell Boltwood
       ------------------------------           --------------------------------
Title: President & CEO                   Title: General Counsel
       ------------------------------           --------------------------------

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                                  SCHEDULE 1.
                     INTELLECTUAL PROPERTY AND LICENSE GRANT

The Intellectual property relating to the Licensor's aXs.623C module includes,
but is not limited to, the following:

1) LICENSOR'S AXS PACKET PROCESSOR SOURCE CODE which is the heart of the
aXs.623C module product that facilitates the real-time and high-density features
of the module and brings numerous value-add features such as [*****]. The source
code package to be licensed includes the following items:

         1.       Engineering Requirement Specification,

         2.       Engineering Technical Reference Manual,

         3.       Complete FPGA [*****] source code for supported revision(s),

         4.       Build instructions. including ail support files like makefiles
                  and constraint tiles,

         5.       Detailed list of specific tools used, including vendor
                  information and version numbers,

         6.       Applicable software test harnesses and procedures,

         7.       Snap-shot imago of "Problem Report" database for Packet
                  Processor components.

LICENSE GRANT: Licensor hereby grants to Licensee a non-exclusive, fully paid,
worldwide, royalty free, perpetual, irrevocable and unrestricted license to use
or modify the aXs packet processor technology, as described above. Licensor
represents and warrants that the technology here licensed is not restricted for
use with either Licensor's or Broadcom Corporation's products.

2) LICENSOR'S OPEN-AXS MODULE API'S SOURCE CODE which is the host-side software
that is used for controlling the aXs.623C module in system deployment. The
module APT's abstract the underlying hardware allowing the applications
developer to write their application code at a higher level. The source code
package licensed to Licensee shall include the following items:

         1.       Engineering Requirement & Design Specifications),

         2.       Complete C source code for currently supported software
                  revision,

         3.       Build instructions, including all support files like makefiles
                  and build scripts,

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         4.       Detailed list of specific tools used, including vendor
                  information and version numbers,

         5.       Applicable software test harnesses and procedures,

         6.       Snap-shot image of "Problem Report" database for Open-aXs
                  Module API components.

LICENSE GRANT: Licensor hereby grants Licensee a non-exclusive, fully paid,
worldwide, royalty free, perpetual, irrevocable, and unrestricted license to use
or modify Licensor's OpenaXs module API software, as described above. This
license is not restricted for use with Licensor's products and there are no
restrictions imposed by Broadcom Corporation on the Open aXs module API's source
code.

3) LICENSOR'S OPEN-AXS CORE SERVICE STACK technology is the executable Broadcom
Corporation CALISTO images that perform the actual media plane (voice)
processing. Licensor has integrated a complete set of specifically tailored and
optimized stack images for supporting the following applications of the Licensee
and the technology described here shall include the most recent supported
revision of each of the service images for these applications, which are
described as follows:

         o        [*****]

         o        [*****]

         o        [*****]

         o        [*****]

         o        [*****]

         o        [*****]

LICENSE GRANT: Licensor hereby grants Licensee a non-exclusive, fully paid,
worldwide, royalty free, perpetual, irrevocable, and unrestricted license to use
or modify Licensor's OpenaXs module API software, as described above, [*****].

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                                  SCHEDULE 2.
                          THIRD PARTY SOFTWARE LICENSES

Third party software for which Licensee must obtain the requisite licenses
includes, but is not limited to, the following:

         (a) Broadcom. Corp. (attached as Schedule "B")

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                                  SCHEDULE 3.
                        MANUFACTURING PACKAGE AND LICENSE

LICENSOR'S AXS.623C MANUFACTURING PACKAGE. This covers the "C" version of the
aXs.623 module in all supported configurations. This is the latest module
revision targeted at reduction in cost, assurance of long-term component supply,
and [*****]. The package includes all of the information required to procure
parts, kit, assemble and test the aXs.623C module. Specific items include:

         1.       Bill of Materials (BOW with Approved Vendor List (AVL),

         2.       PLD source code. object code, and programming information,

         3.       Mechanical drawings,

         4.       Printed circuit board photo tools,

         5.       Assembly drawings,

         6.       Manufacturing test software,

         7.       Manufacturing test system description(1) and procedure.

         8.       Module schematics,

         9.       ECO history,

         10.      items 1 through 9 for the aXs.1012 test and reference blade.

LICENSE GRANT; Licensor hereby grants to Licensee a fully paid, worldwide,
unrestricted, non-exclusive, perpetual, irrevocable license to manufacture the
aXs.623C module at a facility of Licensee's choice.

                                    Page 14
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                                  SCHEDULE 4.
                   TECHNICAL SUPPORT AND MAINTENANCE AGREEMENT

         This Technical Support and Maintenance Agreement ("Agreement") is
entered into between Spectrum Signal Processing Inc, a British Columbia, Canada
corporation with a principal place of business at 2700 Production Way, Suite
200, Burnaby, British Columbia, Canada V5A 4X1 (the "Supplier") and UTStarcom,
Inc. a Delaware corporation with principal place of business is at 1275 Harbor
Bay Parkway, Suite 100, Alameda, California, U.S.A. 94502 (the "Customer").

1. SERVICES

1.1. Subject to the terms and conditions contained in this Agreement, the
Supplier agrees to provide the Customer with ongoing technical support and
maintenance services (the "Technical Support and Maintenance Services"), for the
technology (the "Technology") listed in Schedule "A" attached, effective the 1st
day of October, 2003. For clarity, the services to be provided under this
agreement do not include services in the nature of engineering development for
hardware and/or software. Such engineering development services can be offered
by Supplier, if requested by Customer, under separate agreement.

2. RESTRICTIONS

         As a condition to the furnishing of the Technical Support and
Maintenance Services:

         (a)      the Technology must be used only on the equipment (the
                  "Equipment") listed in Schedule "A" attached, except as is
                  otherwise authorized in this agreement;

         (b)      the Technology must not have been modified in any way by the
                  Customer without the prior written approval of the Supplier;

         (c)      the Equipment must be operating properly at all times and must
                  have been and continue to be properly maintained by the
                  manufacturer of the Equipment or other properly qualified
                  service organization reasonably acceptable to the Supplier;
                  and

         (d)      the Technology must be used with the version or release of the
                  operating system described in the attached Schedule "A", or
                  with any other version or release approved by the Supplier.

3. PAYMENT

         (1) The Customer shall pay quarterly to the Supplier a fee of [*****]
(the "Support Fee") for the Technical Support and Maintenance Services. The
first payment is payable upon signing this agreement, and subsequent payments
are due on the first day of the first month of each quarter in the calendar year
that the Technical Support and Maintenance Services will be delivered.

                                    Page 15
<PAGE>

         (2) The Support Fees stated are exclusive of any Federal, state,
provincial, local or other government taxes, duties, excise taxes or tariffs now
or hereafter imposed on the provision of the Technical Support and Maintenance
Services.

         (3) All amounts payable in this agreement are due net 30 days. The
Customer agrees to pay interest on overdue amounts at the rate of 1 1/2% per
month calculated monthly.

         (4) The Customer acknowledges that the Support Fee may be subject to
increases on written notice to the Customer delivered at least 30 days prior to
the commencement of the following renewal of the term of this agreement. Any
increase in the Support Fee is effective from the commencement of the following
renewal of the term of this agreement.

4. TECHNICAL SUPPORT AND MAINTENANCE SERVICES

         (1) The Supplier will supply telephone and electronic mail assistance
co the representative designated by the Customer under paragraph 5 between 9
a.m. and 5 p.m., local time, from the Supplier's designated office location,
during the Supplier's regular business days, and on an as-needed basis as agreed
upon by the Parties. This telephone assistance will consist, of the Supplier
using its best efforts to provide:

         (a)      explanation of functions and features of the Technology;

         (b)      clarification of documentation pertaining to the Technology;

         (c)      guidance in the operation of the Technology; and

         (d)      error analysis and correction in accordance with paragraph
                  4(3), if correction can be made by telephone.

         (2) The Supplier shall, if, as and when it deems necessary, provide
Customer with updates for the Technology reflecting improvements made to the
Technology.

         (3) If the Customer suspects that a defect exists in the Technology,
the Customer shall notify the Supplier in writing of its suspicions. This
notification shall comprehensively describe the nature of the suspected defect
and provide details of the circumstances of its occurrence. Upon receipt of the
Customer's notice, the Supplier shall use its best efforts to confirm the
existence of the defect If the Supplier confirms the existence of the defect,
the Supplier shall correct it as part of its obligations under this agreement;
if the Supplier determines that no such defects exist, the Customer shall pay
the Supplier for its efforts at the Supplier's hourly rate then in effect.

         (4) Under this agreement, the Supplier shall make available up to, but
not exceeding, one (1) program manager and two (2) senior experienced
development-engineering personnel to make feature modifications to existing
components of the Technology for the Customer.

5. PERSONAL ATTENDANCE & ON-SITE SUPPORT

                                    Page 16
<PAGE>

         If required by the Customer, the Supplier shall be responsible for the
travel costs, communication costs, living expenses and other ant-of-pocket
expenses incurred by one (1) Supplier employee at the Customer's premises to
perform the Technical Support and Maintenance Services for two (2) separate
periods not exceeding five (5) days prior to the expiration of the term.

         Any additional instances where personal attendance or on-site support
is required at the Customer's premises to perform the Technical Support and
Maintenance Services, the Customer shall be fully responsible for all travel
costs, accommodation costs, meal expenses and other out-of-pocket expenses
incurred by the Suppliers personnel, and all of these amounts shall be payable
to the Supplier forthwith when invoiced.

6. REPRESENTATIVE

         The Customer shall within 10 days from the date of this agreement
designate, in writing, an employee or agent to serve as the contact
representative for the Supplier. The Supplier shall not be required to deal with
any person other than that representative. The Customer may by notice in writing
to the Supplier substitute another employee or agent as its representative.

7. CUSTOMER RESPONSIBILITIES

         The Customer assumes full responsibility for:

         (a)      installation of the Technology, unless the Supplier, pursuant
                  to a separate written agreement, agrees to install the
                  Technology; and

         (b)      the operating environment in which the Technology is to
                  function.

8. DISCLAIMER OF WARRANTY AND LIMITATION OF LIABILITY

         (1) THE SUPPLIER GRANTS NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY,
UNDER THIS AGREEMENT INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

         (2) CUSTOMER. AGREES THAT THE SUPPLIER'S LIABILITY, IF ANY, FOR
DAMAGES, INCLUDING BUT NOT LIMITED TO LIABILITY ARISING OUT OF CONTRACT AND TORT
UNDER THIS AGREEMENT. SHALL NOT EXCEED THE AMOUNTS PAID BY THE CUSTOMER UNDER
THIS AGREEMENT.

         (3) IN NO EVENT WILL THE SUPPLIER BE LIABLE FOR ANY INDIRECT, SPECIAL
AND CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS, EVEN IF
THE SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF THESE DAMAGES.

         (4) The Supplier shall not be liable for any damages caused by delay in
delivering or furnishing any services referred to in this agreement.

                                    Page 17
<PAGE>

         (5) The Supplier does not guarantee results under this agreement but
merely agrees to use reasonable diligence in attempting to accomplish its
obligations and shall be entitled to payment on that basis.

9. GENERAL

         (1) This agreement supersedes all prior agreements and understandings
between the parties relating to the subject-matter of this agreement and is
intended by the parties to be the complete and exclusive statement of the
agreement between the parties with respect to the subject-matter of this
agreement.

         (2) Any notices, request or demands under this agreement shall be in
writing and shall be sufficiently given if delivered personally or mailed by
registered mail, postage prepaid, and shall, in the case of personal delivery be
deemed to be received by the party to whom the notice is addressed on the date
of actual receipt by that party and in the case of registered mail, shall lie
deemed to be received on the second business day after posting, but in the case
of a mail interruption, these notices, requests or demands shall be delivered by
prepaid courier delivery.

         (3) This agreement shall be governed by the laws of British Columbia,
Canada

10. TERM AND TERMINATION

         (1) The term of this agreement expires the 30th day of June, 2004.
Thereafter, the term of this agreement shall automatically be renewed for
successive periods of one calendar quarter unless either party gives notice to
the other at least thirty (30) days prior to the expiration of the term.

         (2) This agreement may be terminated by the Supplier, at its sole
option, if the Customer fails to comply with any of its obligations under this
agreement.

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by
their duly authorized representatives on the dates written below.

SPECTRUM SIGNAL PROCESSING INC.          UTSTARCOM, INC. By:

By:    /s/ Pascal Spothelfer             By:    /s/ Russell Boltwood
       ------------------------------           --------------------------------
Name:  Pascal Spothelfer                 Name:  Russell Boltwood
       ------------------------------           --------------------------------
Title: President & CEO                   Title: General Counsel
       ------------------------------           --------------------------------
Date:  12/22/03                          Date   12/22/03
       ------------------------------           --------------------------------

                                    Page 18
<PAGE>

                                  SCHEDULE "A"

                            TECHNOLOGY AND EQUIPMENT

The following technology will be supported and maintained by Supplier:

1) Supplier's "C" version of the aXs.623 module in all supported configurations.

2) Supplier's aXs packet processor source code which is heart of the aXs.623C
module product that facilitates the real-time and high-density features of the
module and brings numerous value-add features such as [*****].

3) Supplier's Open-aXs module API's source code which is the host-side software
that is used for controlling the aXs.623C module in system deployment. The
module API's abstract the underlying hardware allowing the applications
developer to write their application code at a higher level.

4) Supplier's Open-aXs core service stack images which are the executable
Broadcom Corporation Calisto images that perform the actual media plane (voice)
processing. Supplier has integrated a complete set of specifically tailored and
optimized stack images for supporting the following applications:

     [*****]

                                    Page 19<PAGE>
                                                                    Exhibit 4.27

                             SUBSCRIPTION FOR UNITS
                             (BC, AB, ON, QUE, USA)

TO:         SPECTRUM SIGNAL PROCESSING INC.
            One Spectrum Court
            200-2700 Production Way
            Burnaby, British Columbia
            V5A 4X1

AND TO:     GMP SECURITIES LTD.
            GRIFFITHS MCBURNEY & PARTNERS CORP.

            DLOUHY MERCHANT GROUP INC.

The undersigned subscriber (the "SUBSCRIBER") hereby irrevocably subscribes for
and agrees to purchase ___________ units ("UNITS") of Spectrum Signal Processing
Inc. (the "CORPORATION"), each Unit consisting of one common share (a "COMMON
SHARE") and one-half of a common share purchase warrant (a "WARRANT") of the
Corporation, for an aggregate subscription price of $_________________,
representing a subscription price of $1.35 per Unit, on the terms and conditions
set out in paragraphs 1 through 26 attached. This subscription is subject to
acceptance by the Corporation and, subject to paragraph 2, may be accepted as to
the number of Units subscribed for above or such lesser number as may be
determined by the Corporation in its discretion.

DATED at ________________________, in the Province/State of
______________________ this _____ day of March, 2004.

<TABLE>

<S>                                                             <C>
------------------------------------------------------------    -----------------------------------------------------

------------------------------------------------------------    -----------------------------------------------------
(Name of Subscriber - please print)                             (Subscriber's Address including Province/State)

By:
         ---------------------------------------------------    -----------------------------------------------------
         Authorized Signature

------------------------------------------------------------    -----------------------------------------------------
(Official Capacity or title - please print)
                                                                (   )
------------------------------------------------------------    -----------------------------------------------------
(Please print name of individual whose signature appears        Telephone Number
above if different than the name of the subscriber printed
above)

                                                                -----------------------------------------------------
                                                                Email Address

Number and kind of securities of the Corporation directly or
indirectly held, if any:
                                                                -----------------------------------------------------
State whether Subscriber is an insider of the Corporation:      Yes [ ]
                                                                No: [ ]

REGISTRATION INSTRUCTIONS:                                      DELIVERY INSTRUCTIONS:
--------------------------                                      ----------------------

------------------------------------------------------------    -----------------------------------------------------
Name                                                            Name

------------------------------------------------------------    -----------------------------------------------------
Account reference, if applicable                                Account reference, if applicable

------------------------------------------------------------    -----------------------------------------------------
Address                                                         Address

</TABLE>

<PAGE>

<TABLE>

<S>                          <C>

NOTE TO SUBSCRIBER:

YOU MUST:           (1)      READ THE SUBSCRIPTION AND COMPLETE PAGE ONE OF THIS SUBSCRIPTION;
                    (2)      READ AND COMPLETE SCHEDULE A IF YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES
                             LAWS OF ONTARIO, QUEBEC, ALBERTA OR BRITISH COLUMBIA;
                    (3)      IF YOU ARE SUBSCRIBING AS AN "ACCREDITED INVESTOR", READ AND COMPLETE ANNEX I TO SCHEDULE A IF
                             YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES LAWS OF ONTARIO, AND ANNEX II TO SCHEDULE A
                             IF YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES LAWS OF BRITISH COLUMBIA OR ALBERTA;
                    (4)      IF THE SUBSCRIBER IS AN INDIVIDUAL TO WHOM SECTION (b)(i)(D)(IV), (V) OR (VII) OF
                             SCHEDULE A APPLIES, READ AND COMPLETE SCHEDULE B;
                    (5)      READ AND COMPLETE SCHEDULE C IF THE SUBSCRIBER LIVES IN, OR OTHERWISE IS SUBJECT TO THE
                             SECURITIES LAWS OF, THE UNITED STATES OF AMERICA; AND/OR
                    (6)      READ AND COMPLETE SCHEDULE D.
</TABLE>

Please return all completed pages by facsimile with the full original by courier
to the following address by no later than March 19, 2004:

                               GMP Securities Ltd.
                             Attn: Joanne Stansfield
                              145 King Street West
                            Toronto, Ontario, M5H 1J8
                               Fax: (416) 943-6160

<PAGE>

1.       Private Placement; Terms of Units: The Subscriber acknowledges (on its
         own behalf and, if applicable, on behalf of each person on whose behalf
         the Subscriber is contracting) that the Units will be issued in
         connection with the issue and sale of up to 2,102,780 Units by the
         Corporation on a private placement basis (the "OFFERING") pursuant to
         an agency agreement (the "AGENCY AGREEMENT") to be dated the Closing
         Date (as defined in paragraph 6 hereof) between the Corporation, GMP
         Securities Ltd. ("GMP") and Dlouhy Merchant Group Inc. ("DLOUHY"). Each
         Unit consists of one Common Share and one-half of a Warrant. The
         Warrants shall be issued pursuant to an indenture (the "WARRANT
         INDENTURE") to be entered into at or prior to the Closing (as
         hereinafter defined) between the Corporation and Computershare Trust
         Company of Canada (the "WARRANT AGENT"). Each whole Warrant entitles
         the holder thereof to acquire one additional Common Share for $1.50 for
         a period of eighteen months from the Closing Date. By its acceptance of
         this offer, the Corporation covenants, agrees and confirms that the
         Subscriber will have the benefit of all of the representations,
         warranties, covenants and conditions provided to or for the benefit of
         the Subscriber under the Agency Agreement.

         The Subscriber acknowledges and agrees that the rights of the holders
         of Warrants may be modified under the and Warrant Indenture pursuant to
         an extraordinary resolution approved either (i) by the holders of
         Warrants that attend or are represented at a duly convened meeting of
         the holders of Warrants representing not less than 66 2/3 percent of
         the aggregate number of all Warrants then outstanding or (ii) by
         written consent of the holders of Warrants representing not less than
         66 2/3 percent of the aggregate number of all Warrants then
         outstanding.

         GMP and Dlouhy are collectively referred to herein as the "AGENTS".
         Pursuant to the terms of the Agency Agreement, the Agents shall be
         entitled to receive as compensation for the sale of Units to
         Subscribers other than Ventures West 7 Limited Partnership, Ventures
         West 7 U.S. Limited Partnership and directors, officers and employees
         of the Corporation a cash commission equal to seven and a half percent
         (7.50%) of the subscription price paid for by such Subscribers. The
         Agents shall be entitled to receive as cash compensation for the sale
         of Units or Common Shares to Ventures West 7 Limited Partnership,
         Ventures West 7 U.S. Limited Partnership and directors, officers and
         employees of the Corporation a cash commission equal to three and
         three-quarters percent (3.75%) of the subscription price paid for by
         such Subscribers. In addition, the Agents are entitled to receive
         compensation warrants exercisable for a period of one year from the
         Closing Date to acquire that number of Units equal to four and a half
         percent (4.5%) of the Units subscribed for by all Subscribers (the
         "COMPENSATION WARRANTS"), with an exercise price of $1.50 per
         Compensation Warrant.

2.       Subscription for Units: The Subscriber hereby confirms (on its own
         behalf and, if applicable, on behalf of each person on whose behalf the
         Subscriber is contracting) its subscription for and agrees to take up
         the Units as provided for on the initial page of this Subscription
         Agreement and acknowledges that this subscription is subject to
         acceptance by the Corporation and to the fulfilment of certain other
         terms and conditions by the Subscriber. The Corporation will not accept
         this subscription unless the Subscriber has confirmed to the
         Corporation that the representations, warranties and covenants set out
         in paragraph 4 and

                  (i)      Schedule A if the Subscriber or the person on whose
                           behalf the Subscriber is contracting, lives in or is
                           otherwise subject to the securities laws of Ontario,
                           Quebec, British Columbia or Alberta; or

                  (ii)     Schedule C if the subscriber, or the person on whose
                           behalf the Subscriber is contracting, lives in or is
                           otherwise subject to the securities laws of the
                           United States of America;

         shall be true in respect of the purchase by the Subscriber of the
         purchased Units following such acceptance.

3.       Representations, Warranties and Covenants of Subscriber relating to
         Availability of Prospectus Exemptions: By executing this Subscription
         Agreement, the Subscriber (on its own behalf and, if applicable, on
         behalf of each person on whose behalf the Subscriber is contracting)
         makes the representations, warranties and covenants set out in

<PAGE>

                  (i)      Schedule A if the Subscriber or the person on whose
                           behalf the Subscriber is contracting, lives in or is
                           otherwise subject to the securities laws of Ontario,
                           Quebec, British Columbia or Alberta; or

                  (ii)     Schedule C if the subscriber, or the person on whose
                           behalf the Subscriber is contracting, lives in or is
                           otherwise subject to the securities laws of the
                           United States of America;

         to the Corporation (which representations, warranties and covenants
         shall survive the closing of the purchase of the Units) and
         acknowledges that the Corporation, the Agents and their respective
         counsel are relying thereon.

4.       Additional Representations, Warranties and Covenants of Subscriber: By
         executing this Subscription Agreement, the Subscriber further
         represents, warrants and covenants (on its own behalf and, if
         applicable, on behalf of each person on whose behalf the Subscriber is
         contracting) to the Corporation (which representations, warranties and
         covenants shall survive the closing of the purchase of the Units) and
         acknowledges that the Corporation, the Agents and their respective
         counsel are relying thereon that:

         (a)      the Subscriber has been independently advised as to and is
                  aware that applicable securities legislation may impose
                  restrictions on the resale of the Units and is aware of the
                  risks in purchasing and the other characteristics of the Units
                  and of the fact that the Subscriber may not be able to resell
                  the Units except in accordance with applicable securities
                  legislation and regulatory policy until expiry of the
                  applicable restricted period and compliance with other
                  requirements of applicable law;

         (b)      the certificates representing the Units will bear a legend
                  regarding restrictions on transfer which may apply under
                  applicable securities legislation;

         (c)      the Subscriber acknowledges and understands that (i) it has
                  been advised to, and should, consult its own legal advisors
                  with respect to applicable restrictions on the resale of the
                  Units purchased by the Subscriber, and (ii) it is solely
                  responsible (and the Corporation is not in any manner
                  responsible) for compliance with such restrictions, and (iii)
                  it will comply with such restrictions;

         (d)      the Subscriber is capable of assessing the proposed investment
                  as a result of its financial and investment experience or as a
                  result of advice received from a registered person other than
                  the Corporation or any affiliates thereof and is able to bear
                  the economic loss of its investment;

         (e)      the Subscriber acknowledges that it has been encouraged to
                  obtain independent legal, investment and tax advice with
                  respect to its subscription of Units and accordingly has had
                  the opportunity to acquire an understanding of the meanings of
                  all the terms contained herein relevant to the Subscriber for
                  the purposed of giving representations, warranties and
                  covenants under this Subscription Agreement and the
                  transactions contemplated hereunder;

         (f)      the Subscriber, in connection with this offering of Units, has
                  not received, nor has it requested, nor does it have any need
                  to receive, any offering memorandum or similar document
                  describing the business and affairs of the Corporation which
                  has been or appears or purports to have been prepared
                  primarily for delivery to, and review by, prospective
                  subscribers in order to assist them in making an investment
                  decision in respect of the Units;

         (g)      insofar as the Subscriber is aware, the offering of Units is
                  not being accompanied by any advertisement in the printed
                  media or on radio or television or by other means of
                  telecommunication including electronic display such as the
                  Internet or any other form of advertisement or general
                  solicitation with respect to the distribution;

         (h)      except for the representations and warranties to be made by
                  the Corporation to the Agents in the Agency Agreement, the
                  Subscriber has relied only upon the publicly available
                  information relating

<PAGE>

                  to the Corporation and not upon any verbal representation as
                  to fact, or upon any written representations, warranties or
                  covenants otherwise made by or on behalf of the Corporation,
                  such publicly available information having been independently
                  obtained by the Subscriber, and agrees that the Agent and the
                  Agents' counsel assume no responsibility or liability of any
                  nature whatsoever for the accuracy, adequacy or completeness
                  of publicly available information or as to whether all
                  information concerning the Corporation required to be
                  disclosed by the Corporation has been generally disclosed by
                  the Corporation and acknowledges that the Corporation's
                  counsel and the Agents' counsel are acting as counsel to the
                  Corporation and the Agents respectively, and not as counsel to
                  the Subscriber;

         (i)      the Subscriber and any beneficial purchaser for whom the
                  Subscriber is acting as agent or trustee (a "BENEFICIAL
                  SUBSCRIBER") are resident in the province or state set out in
                  the "Subscriber's Address" on page one hereof, and the
                  purchase by and sale to the Subscriber of the Units, and any
                  act, solicitation, conduct or negotiation directly or
                  indirectly in furtherance of such purchase and sale (whether
                  with or with respect to the Subscriber or any beneficial
                  Subscriber) has occurred only in such province or state;

         (j)      this Subscription Agreement has been duly and validly executed
                  and delivered by the Subscriber, and, if the Subscriber is not
                  an individual, has been duly authorized by the Subscriber,
                  and, upon acceptance by the Corporation, this Subscription
                  Agreement will constitute a legal, valid and binding contract
                  of the Subscriber enforceable against the Subscriber, and any
                  beneficial Subscribers on whose behalf the Subscriber is
                  acting, in accordance with its terms;

         (k)      if an individual, the Subscriber has attained the age of
                  majority and is legally competent to execute this Subscription
                  Agreement and to take all actions required pursuant hereto;

         (l)      no person has made any written or oral representation (i) that
                  any person will resell or repurchase the Units; (ii) that any
                  person will refund the purchase price of the Units; and (iii)
                  as to future price or value of the Units;

         (m)      if the Subscriber is not purchasing as principal and is acting
                  as agent or trustee for a beneficial Subscriber, the
                  Subscriber represents and warrants that it is duly authorized
                  to enter into this Subscription Agreement for and on behalf of
                  such beneficial Subscriber and to execute all documentation in
                  connection with the purchase of the Units on behalf of such
                  beneficial Subscriber and acknowledges that the Corporation
                  may be required by law to disclose to certain regulatory
                  authorities the identity of each beneficial Subscriber of
                  Units for whom it may be acting;

         (n)      if required by applicable securities legislation or stock
                  exchange rules, the Subscriber will, with respect to this
                  Subscription Agreement, execute, deliver and file or assist
                  the Corporation in obtaining and filing such reports,
                  undertakings and other documents relating to the purchase of
                  the Units by the Subscriber as may be required by any
                  securities commission, stock exchange or other regulatory
                  authority including, without limitation, any applicable form
                  referred to in paragraph 7 of this Agreement;

         (o)      none of the funds the Subscriber is using to purchase the
                  Units are, to the knowledge of the Subscriber, proceeds
                  obtained or derived, directly or indirectly, as a result of
                  illegal activities;

         (p)      if the Subscriber has not completed Schedule C, the Subscriber
                  is not a U.S. Person or a person within the United States (as
                  such terms are defined in Rule 902 of Regulation S under the
                  United States Securities Act of 1933, as amended, (the "1933
                  ACT")) and it is not acquiring the Units for the account or
                  benefit of a U.S. Person or a person within the United States,
                  the Units were not offered to the Subscriber in the United
                  States and this Subscription Agreement has not been signed in
                  the United States, the Subscriber acknowledges that the Units
                  have not been and will not be registered under the 1933 Act or
                  the securities laws of any state and that these securities may
                  not

<PAGE>

                  be offered or sold in the United States without registration
                  under the 1933 Act or compliance with requirements of an
                  exemption from registration under the 1933 Act;

         (q)      the Subscriber covenants that if the Subscriber decides to
                  offer, sell or otherwise transfer, pledge or hypothecate all
                  or any part of the Units, the Subscriber will not offer, sell
                  or otherwise transfer, pledge or hypothecate any of such Units
                  (other than pursuant to an effective registration statement
                  under the 1933 Act) directly or indirectly to a U.S. Person or
                  a person within the United States unless such offer and sale
                  or other disposition is part of a transaction that does not
                  require registration under the 1933 Act or any applicable
                  United States state laws, rules and regulations governing the
                  offer and sale of securities, and it has theretofore furnished
                  to the Corporation an opinion to that effect of counsel of
                  recognized standing reasonably satisfactory to the
                  Corporation; and

         (r)      the Subscriber covenants to indemnify the Corporation and the
                  Agents against all losses, claims, costs, expenses and damages
                  or liability which it may suffer or incur, caused or arising
                  from reliance upon the representations, warranties,
                  acknowledgements and covenants of the Subscriber contained
                  herein and the Subscriber further agrees that by accepting the
                  Units, the Subscriber shall be representing and warranting
                  that such representations, warranties, acknowledgements and
                  covenants are true as at the Closing Date with the same force
                  and effect as if they had been made by the Subscriber at the
                  Closing Date and that they shall survive the purchase by the
                  Subscriber of the Units and shall continue in full force and
                  effect notwithstanding any subsequent disposition by the
                  Subscriber of any of the Units.

5.       Authorization of GMP: The Subscriber irrevocably authorizes GMP, in its
         discretion, to act as the Subscriber's representative at the Closing
         (as defined below), and hereby appoints GMP, with full power of
         substitution, as its true and lawful attorney with full power and
         authority in the Subscriber's place and stead: (a) to receive
         certificates representing the Units, to execute in the Subscriber's
         name and on its behalf all closing receipts and required documents, to
         complete and correct any errors or omissions in any form or document
         provided by the Subscriber in connection with the subscription for the
         Units and to exercise any rights of termination contained in the Agency
         Agreement; (b) to extend such time periods and to waive, in whole or in
         part, any representations, warranties, covenants or conditions for the
         Subscriber's benefit contained in this Subscription Agreement, and the
         Agency Agreement or any ancillary or related document; (c) to terminate
         this Subscription Agreement if any condition precedent is not
         satisfied, in such manner and on such terms and conditions as GMP in
         its sole discretion may determine; and (d) without limiting the
         generality of the foregoing, to negotiate, settle, execute, deliver and
         amend the Agency Agreement.

6.       Closing: The sale of the Units (the "CLOSING") will be completed at the
         Vancouver offices of the Corporation's counsel at 8:00 a.m. (Vancouver
         time) or such other time as the Corporation may determine (the "CLOSING
         TIME") on March 23, 2004, or such other date or dates as the
         Corporation may determine (the "CLOSING DATE"). The Offering is
         conditional upon the Corporation obtaining conditional approval from
         the Toronto Stock Exchange and the Nasdaq Small Cap Market for the
         Offering.

7.       Delivery of Documentation and Payment of Subscription Price: In order
         to subscribe for the Units indicated in this Subscription Agreement,
         the Subscriber shall deliver to GMP no later than 4:00 p.m. local time
         at 145 King Street West, Suite 1100, Toronto, Ontario, M5H 1J8, Fax
         (416) 943-6160 Attention: Joanne Stansfield on March 19, 2004, or on
         such date that is two business days before the Closing Date in the
         event that the closing date is changed in accordance with paragraph 6
         above:

         (a)      if the Subscriber, or the person on whose behalf the
                  Subscriber is contracting, lives in or is otherwise subject to
                  the securities laws of Ontario, Quebec, British Columbia or
                  Alberta:

                  (i)      this completed and duly executed Subscription
                           Agreement including the applicable Annexes to
                           Schedule A hereto;

                  (ii)     such other documents as may be required pursuant to
                           Schedule A hereto;

<PAGE>

                  (iii)    where the Subscriber is an individual to whom section
                           (b)(D)(IV), (V) or (VII) of Schedule A applies,
                           Schedule B hereto; and

                  (iv)     Schedule D hereto; or

         (b)      if the Subscriber, or the person on whose behalf the
                  Subscriber is contracting, lives in or is otherwise subject to
                  the securities laws of the United States of America:

                  (i)      this completed and duly executed Subscription
                           Agreement;

                  (ii)     Schedule C hereto;

                  (iii)    such other documents as may be required pursuant to
                           Schedule C hereto; and

                  (iv)     Schedule D hereto.

         The Subscriber shall deliver to GMP before the Closing Time a certified
         cheque or bank draft payable to GMP, for the aggregate subscription
         price of the Units subscribed for hereby unless alternative
         arrangements satisfactory to GMP for payment of the aggregate
         subscription price have been made.

8.       Accuracy: The Subscriber acknowledges that it has carefully read this
         Subscription Agreement, and each of the representations and warranties
         set forth herein will be true and correct both as of the time of
         execution of this Subscription Agreement and as of the date of
         acceptance hereof (if accepted) by the Corporation and as of the time
         of issuance of the Units subscribed for.

9.       Representations, Warranties and Covenants of the Corporation: The
         Corporation represents and warrants to the Subscriber, and acknowledges
         that the Subscriber is relying upon such representations and
         warranties, that:

         (a)      the Corporation has the full corporate power and authority to
                  execute and deliver this Subscription Agreement and to issue
                  the Units;

         (b)      this Subscription Agreement constitutes a binding obligation
                  of the Corporation enforceable in accordance with its terms;

         (c)      the execution and delivery of, and the performance of the
                  terms of, this Subscription Agreement by the Corporation,
                  including the issue of the Units pursuant hereto does not and
                  will not constitute a breach of or default under the
                  constating documents of the Corporation or any law,
                  regulation, order or ruling applicable to the Corporation or
                  any agreement, contract or indenture to which the Corporation
                  is a party or by which it is bound;

10.      Survival of Representations, etc.: The representations, warranties and
         covenants of the Subscriber herein are made by the Subscriber with the
         knowledge and intent that they are being and will be relied upon by the
         Corporation and the Agents in connection with the transactions
         contemplated hereby, including for purposes of determining the
         suitability of the Subscriber as a purchaser of Units and the
         availability of prospectus exemptions in connection with the offering
         and sale to the Subscriber or the beneficial Subscriber, as the case
         may be, of the Units, and the Subscriber hereby agrees to indemnify the
         Corporation and the Agents and each of their directors, officers,
         employees, agents and control persons against all losses, claims,
         costs, expenses, damages and liabilities which any of them may suffer
         or incur caused or arising from any inaccuracy therein or breach
         thereof. The Subscriber hereby undertakes to notify the Corporation (at
         the address of the Corporation set forth above) immediately of any
         change in any representation, warranty or covenant set forth herein or
         any other information set forth herein relating to the Subscriber that
         arises prior to the Closing Time. The representations, warranties and
         covenants contained herein shall survive the closing of the
         transactions contemplated hereby.

<PAGE>

11.      Headings: The division of this Subscription Agreement into paragraphs
         and the insertion of headings are for convenience of reference only and
         shall not effect the construction or interpretation of this
         Subscription Agreement. The terms "HEREOF", "HEREUNDER" and similar
         expressions refer to this Subscription Agreement and not to any
         particular paragraph or any portion hereof and include any agreement
         supplemental hereto. Unless something in the subject matter or context
         is inconsistent therewith, references hereinto paragraphs and
         subparagraphs are to paragraphs and subparagraphs of this Subscription
         Agreement.

12.      Extended Meanings: In this Subscription Agreement words importing the
         singular number only include the plural and vice versa, words importing
         any gender include all genders and words importing persons include
         individuals, partnerships, associations, trusts, unincorporated
         associations and corporations.

13.      Costs and Expenses: All costs and expenses (including, without
         limitation, the fees and disbursements of legal counsel) incurred in
         connection with this Subscription Agreement and the transactions herein
         contemplated shall be paid and borne by the party incurring such costs
         and expenses.

14.      Counterparts: This Subscription Agreement may be executed in two or
         more counterparts, each of which shall be deemed to be an original and
         all of which together shall constitute one and the same Subscription
         Agreement. Counterparts may be executed either in original or faxed
         form and the parties adopt any signature received by a receiving fax
         machine as original signatures of the parties.

15.      Currency: Unless otherwise indicated, all references to currency herein
         are to lawful money of Canada.

16.      Schedules: The schedules attached hereto are incorporated by reference
         and deemed to be part hereof.

17.      Further Assurances: Each of the parties hereto will from time to time
         execute and deliver all such further documents and instruments and do
         all acts and things as the other party may, either before or after the
         closing of the transactions contemplated hereby, reasonably require to
         effectively carry out or better evidence or perfect the full intent and
         meaning of this Subscription Agreement.

18.      Time of the Essence: Time shall be of the essence of this Subscription
         Agreement.

19.      Benefit of the Agreement: This Subscription Agreement will enure to the
         benefit of and be binding upon the respective heirs, executors,
         administrators, successors and permitted assigns of the parties hereto.

20.      Entire Agreement: This Subscription Agreement constitutes the entire
         agreement between the parties hereto with respect to the subject matter
         hereof and cancels and supersedes any prior understandings and
         agreements between the parties with respect thereto. There are no
         representations, warranties, terms, conditions, undertakings or
         collateral agreements, expressed, implied or statutory, between the
         parties hereto other than as expressly set forth in this Subscription
         Agreement.

21.      Amendments and Waivers: No amendment to this Subscription Agreement
         will be valid or binding unless set forth in writing and duly executed
         by the parties hereto. No waiver of any breach of any provision of this
         Subscription Agreement will be effective or binding unless made in
         writing and signed by the party purporting to give the same and, unless
         otherwise provided, will be limited to the specific breach waived.

22.      Assignment: The terms of this Subscription Agreement shall be binding
         upon and enure to the benefit of the Subscriber and its respective
         heirs, executors, administrators, successors and assigns, provided
         that, except for the assignment by the Subscriber who is acting as
         nominee or agent to the beneficial owner and as otherwise herein
         provided, this Subscription Agreement may not be assigned by either
         party without the prior written consent of the other party.

23.      Governing Law: This Subscription Agreement is governed by and shall be
         construed in accordance with the laws of the Province of British
         Columbia and the laws of Canada applicable therein.

<PAGE>

24.      Attornment: For the purpose of all legal proceedings this Subscription
         Agreement will be deemed to have been performed in British Columbia and
         the Courts of British Columbia will have jurisdiction to entertain any
         action arising under this Subscription Agreement. The parties hereto
         each hereby attorns to the jurisdiction of the Courts of British
         Columbia.

25.      Facsimiled Subscription Agreements: The Corporation shall be entitled
         to rely on delivery by facsimile of an executed copy of this
         Subscription Agreement, and acceptance by the Corporation of such
         facsimile copy shall be legally effective to create a valid and binding
         agreement between the Subscriber and the Corporation in accordance with
         the terms hereof.

26.      Language: The parties hereby request that this Subscription Agreement
         and any related documents be drafted only in the English language. Les
         parties demandent par les presentes que la presente souscription ainsi
         que tous les documents y afferents soient rediges en langue anglaise
         seulement.

                                   ACCEPTANCE

The undersigned hereby accepts the above subscription as of this 23 day of
March, 2004.

                                               SPECTRUM SIGNAL PROCESSING INC.

                                               By: "Brent Flichel"
                                                   -----------------------------
                                                   Signature /s/BRENT FLICHEL
                                                   Name: BRENT FLICHEL
                                                         Chief Financial Officer

<PAGE>

NOTE TO SUBSCRIBER:

<TABLE>

<S>                 <C>      <C>
YOU MUST:           (1)      READ THE SUBSCRIPTION AND COMPLETE PAGE ONE OF THIS SUBSCRIPTION;
                    (2)      READ AND COMPLETE SCHEDULE A IF YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES
                             LAWS OF ONTARIO, QUEBEC, ALBERTA OR BRITISH COLUMBIA;
                    (3)      IF YOU ARE SUBSCRIBING AS AN "ACCREDITED INVESTOR", READ AND COMPLETE ANNEX I TO SCHEDULE A IF
                             YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES LAWS OF ONTARIO, AND ANNEX II TO SCHEDULE A
                             IF YOU LIVE IN OR ARE OTHERWISE SUBJECT TO THE SECURITIES LAWS OF BRITISH COLUMBIA OR ALBERTA;
                    (4)      IF THE SUBSCRIBER IS AN INDIVIDUAL TO WHOM SECTION (b)(i)(D)(IV), (V) OR (VII) OF
                             SCHEDULE A APPLIES, READ AND COMPLETE SCHEDULE B;
                    (5)      READ AND COMPLETE SCHEDULE C IF THE SUBSCRIBER LIVES IN, OR OTHERWISE IS SUBJECT TO THE
                             SECURITIES LAWS OF, THE UNITED STATES OF AMERICA; AND/OR
                    (6)      READ AND COMPLETE SCHEDULE D.
</TABLE>

<PAGE>

                                   SCHEDULE A

      SUBSCRIBER QUALIFICATIONS, REPRESENTATIONS, WARRANTIES AND COVENANTS

         By executing this Subscription Agreement, the Subscriber represents,
warrants and covenants (on its own behalf, or if applicable on behalf of those
for whom the Subscriber is contracting hereunder) to and in favour of the
Corporation (which representations, warranties and covenants shall survive the
closing of the purchase of the Units) and acknowledges that the Corporation, the
Agents and their respective counsel are relying thereon that:

         (a)      either (i) the Subscriber is purchasing the Units as principal
                  for its own account and not for the benefit of any other
                  person, and not with a view to the resale or distribution of
                  all or any of the Units and the Subscriber complies with such
                  of the subparagraphs in paragraph (b) below as are applicable
                  to it by virtue of the place of residence or by virtue of it
                  being subject to the applicable securities legislation of such
                  province; or (ii) if the Subscriber is acting as agent or
                  trustee for one or more beneficial Subscribers whose identity
                  is disclosed or undisclosed or identified by account number
                  only, each beneficial Subscriber is purchasing as principal
                  for its own account and not for the benefit of any other
                  person, and not with a view to the resale or distribution of
                  all or any of the Units, and each beneficial Subscriber
                  complies with such of the subparagraphs in paragraph (b) below
                  as are applicable to it by virtue of its place of residence or
                  by virtue of it being subject to the applicable securities
                  legislation of such province; or (iii) the Subscriber complies
                  with such of the subparagraphs in paragraph (b) below as are
                  applicable to it by virtue of its place of residence or by
                  virtue of it being subject to the applicable securities
                  legislation of such province and is deemed to be purchasing as
                  principal pursuant to applicable securities legislation and
                  regulatory policy by virtue of the fact that the Subscriber is
                  a resident of or otherwise subject to the securities
                  legislation of:

                  (A)      British Columbia, and it is (I) a trust company or
                           extra-provincial trust corporation authorized under
                           the Financial Institutions Act (British Columbia) to
                           carry on trust business or deposit business or both,
                           or an insurance company or extra-provincial insurance
                           corporation authorized to carry on insurance business
                           under the Financial Institutions Act (British
                           Columbia), or a portfolio manager that is registered
                           as a portfolio manager under the Securities Act
                           (British Columbia), and in each case is purchasing as
                           an agent or trustee for accounts that are fully
                           managed by it; or (II) a trust company authorized
                           under the laws of a province or territory of Canada
                           other than British Columbia to carry on business in
                           that province or territory or an insurance company
                           authorized under the laws of a province or territory
                           of Canada other than British Columbia to carry on
                           business in that province or territory, or a
                           portfolio manager exempt from registration under the
                           Securities Act (British Columbia) or registered or
                           exempt from registration in a province or territory
                           of Canada other than British Columbia, and in each
                           case is purchasing Units that have an aggregate
                           acquisition cost of not less than $97,000 as an agent
                           or trustee for accounts that are fully managed by it;
                           provided that, as used herein, an account is "fully
                           managed" by a person only if the person makes the
                           investment decisions for the account and has full
                           discretion to purchase or sell securities for the
                           account without requiring the client's express
                           consent to a transaction; or

                  (B)      Alberta, and it is trading for accounts fully managed
                           by it and it is (I) a trust company or trust
                           corporation trading as a trustee or agent on behalf
                           of a fully managed account; or (II) a portfolio
                           manager trading as agent on behalf of a fully managed
                           account; or (III) a person or company trading as
                           agent on behalf of a fully managed account that,
                           except for an exemption under the Securities Act
                           (Alberta) or the regulations thereunder, is required
                           to be registered as a portfolio manager; or

                  (C)      Quebec, and it is a trust company licensed under the
                           Trust Companies and Savings Companies Act (Quebec),
                           an insurance company holding a license under the Act
                           respecting insurance (Quebec) or a dealer or adviser
                           appropriately registered under the

<PAGE>

                           Securities Act (Quebec) and is purchasing the Units
                           as trustee or as agent for the portfolio of a third
                           person managed solely by the Subscriber;

(b)      the offering and sale of the Units to the Subscriber or beneficial
         Subscriber is exempt from the prospectus requirements of applicable
         securities legislation by virtue of the fact that the Subscriber or
         beneficial Subscriber, as the case may be, is a resident of or
         otherwise subject to the securities legislation of:

         (i)      British Columbia, and:

                  (A)      it is designated as an exempt Subscriber in an order
                           that the executive director made for the purposes of
                           paragraph 74(2)(3) of the Securities Act (British
                           Columbia); or

                  (B)      if it is an individual, the aggregate acquisition
                           cost of the Units to it is not less than $97,000; and
                           if it is a corporation, partnership, trust, fund,
                           association or any other organized group of persons,
                           it has not been created solely, or used primarily, to
                           permit the group of individuals to purchase the Units
                           without a prospectus unless each of the individuals
                           is purchasing Units having an aggregate acquisition
                           cost of at least $97,000 to each individual; or

                  (C)      it is an "accredited investor" as defined in
                           Multilateral Instrument 45-103 - Capital Raising
                           Exemptions such that one or more of the categories
                           set forth in Annex II to this Schedule A correctly
                           and in all respects describes the Subscriber, and the
                           Subscriber has so indicated by checking the box
                           opposite each category on such Annex II which so
                           describes it or the beneficial Subscriber, as
                           applicable, and the Subscriber acknowledges that by
                           signing this Agreement it is certifying that the
                           statements made by checking the appropriate
                           accredited investor categories are true and correct;
                           or

                  (D)      it is one of the following and has so indicated by
                           initialling the applicable paragraph:

<TABLE>

<S>                                     <C>      <C>

                           __________   (I)      a director, senior officer or control person of the Corporation, or of an
                                                 affiliate of the Corporation;

                           __________   (II)     a spouse, parent, grandparent, brother, sister or child of a director,
                                                 senior officer or control person of the Corporation, or of an affiliate of
                                                 the Corporation;

                           __________   (III)    a parent, grandparent, brother, sister or child of the spouse of a director,
                                                 senior officer or control person of the Corporation or of an affiliate of
                                                 the Corporation;

                           __________   (IV)     a close personal friend of a director, senior officer or control person of the
                                                 Corporation, or of an affiliate of the Corporation, and has concurrently
                                                 executed and delivered a Questionnaire in the form attached as SCHEDULE B to this
                                                 Subscription Agreement;

                           __________   (V)      a close business associate of a director, senior officer or control person of the
                                                 Corporation, or of an affiliate of the Corporation, and has concurrently
                                                 executed and delivered a Questionnaire in the form attached as SCHEDULE B to this
                                                 Subscription Agreement;

                           __________   (VI)     a founder of the Corporation or a spouse, parent, grandparent, brother, sister or
                                                 child of a founder of the Corporation;

</TABLE>

<PAGE>

<TABLE>

<S>                                     <C>      <C>
                           __________   (VII)    a close personal friend or close business associate of a founder of the
                                                 Corporation, and has concurrently executed and delivered a Questionnaire in the
                                                 form attached as SCHEDULE B to this Subscription Agreement; or

                           __________   (VIII)   a parent, grandparent, brother, sister or child of the spouse of a founder of
                                                 the Corporation;

                           __________   (IX)     a person or company of which a majority of the voting securities are beneficially
                                                 owned by, or a majority of the directors are, persons or companies described in
                                                 paragraphs (I) to (VIII);

                           __________   (X)      a trust or estate of which all of the beneficiaries or a majority of the trustees
                                                 are persons or companies described in paragraphs (I) to (IX); or

                           __________   (XI)     an employee, senior officer, director or consultant of the Corporation or of an
                                                 affiliated entity of the Corporation provided that, in the case of an employee,
                                                 senior officer or consultant, its participation in the trade is voluntary, meaning
                                                 it is not induced to participate in the trade by expectation of employment or
                                                 continued employment with, or engagement to provide services or continued
                                                 engagement to provide services to, as applicable, the Corporation or an affiliated
                                                 entity of the Corporation; or

</TABLE>

         (ii)     Alberta, and:

                  (A)      it is an "accredited investor" (as that term is
                           defined in Multilateral Instrument 45-103 - Capital
                           Raising Exemptions) such that one or more of the
                           categories set forth in Annex II to this Schedule A
                           correctly and in all respects describes the
                           Subscriber or the beneficial Subscriber, as
                           applicable, and the Subscriber has so indicated by
                           checking the box opposite each category on such Annex
                           II which so describes it or the beneficial
                           Subscriber, as applicable, and the Subscriber
                           acknowledges that by signing this Subscription
                           Agreement it is certifying that the statements made
                           by checking the appropriate accredited investor
                           categories are true and correct; or

                  (B)      if it is an individual, the aggregate acquisition
                           cost of the Units to it is not less than $97,000; and
                           if it is a corporation, syndicate, partnership or
                           other form of unincorporated organization, it
                           pre-existed the offering of the Units and has a bona
                           fide purpose other than investment in the Units or,
                           if created to permit such investment, the individual
                           share of the aggregate acquisition cost for each
                           participant is not less than $97,000;

                  (C)      it is one of the following and has so indicated by
                           initialling the applicable paragraph:

<PAGE>

<TABLE>

<S>                                     <C>      <C>
                           __________   (I)      an employee, senior officer, director or consultant of the Corporation or of an
                                                 affiliated entity of the Corporation; or

                           __________   (II)     a trustee, custodian or administrator acting on behalf, or for the benefit of
                                                 an individual referred to in clause (a) above or a holding entity of or a
                                                 registered retirement savings plan or registered retirement income fund of an
                                                 individual referred to in clause (A) above; or

                           __________   (III)    the spouse or a holding entity, registered retirement savings plan or registered
                                                 retirement income fund of the spouse of an individual referred to in clause (A)
                                                 above;

                                                 provided that, in the case of  an employee, senior officer or consultant, its
                                                 participation in the trade is voluntary, meaning it is not induced to participate
                                                 in the trade by expectation of employment or continued employment with, or
                                                 engagement to provide services or continued engagement to provide services to, as
                                                 applicable, the Corporation or an affiliated entity of the Corporation; or

</TABLE>

         (iii)    Ontario, and it is an "accredited investor" (as that term is
                  defined in Ontario Securities Commission Rule 45-501 - Exempt
                  Distributions) such that one or more of the categories set
                  forth in Annex I to this Schedule A correctly and in all
                  respects describes the Subscriber or the beneficial
                  Subscriber, as applicable, and the Subscriber has so indicated
                  by checking the box opposite each category on such Annex I
                  which so describes it or the beneficial Subscriber, as
                  applicable, and the Subscriber acknowledges that by signing
                  this Subscription Agreement it is certifying that the
                  statements made by checking the appropriate accredited
                  investor categories are true and correct; or

         (iv)     Quebec, and

                  (A)      it is a "sophisticated purchaser" within the meaning
                           of Section 43, 44 or 45 of the Securities Act
                           (Quebec) and is purchasing the Units for its own
                           account, or if it is a trust company licensed under
                           the Act respecting trust companies and savings
                           companies (Quebec) or an insurance company holding a
                           license under the Act respecting insurance (Quebec)
                           or a dealer or adviser registered in conformity with
                           Section 148 of the Securities Act (Quebec), it is
                           purchasing the Units for the portfolio of a third
                           person managed solely by that company, dealer or
                           adviser; or

                  (B)      the total cost of the Units to it exceeds $150,000
                           and it is acting for its own account and, if a
                           company, was not established solely to acquire the
                           Units;

(c)      it and any beneficial Subscriber for whom it is acting:

         (i)      is not a U.S. Person as defined in the United States
                  Securities Act of 1933, as amended (the "1933 Act") and is not
                  purchasing the Units for the account of or the benefit of a
                  U.S. Person;

         (ii)     was not offered the Units in the United States (as defined in
                  Regulation S under the 1933 Act);

         (iii)    did not execute or deliver this agreement in the United
                  States; and

<PAGE>

         (iv)     is resident in Alberta, British Columbia, Quebec or Ontario
                  and it is not a non-resident of Canada for the purposes of the
                  Income Tax Act (Canada); and

(d)      it and any beneficial Subscriber, as the case may be, is aware that the
         Corporation is only a reporting issuer in the Provinces of Alberta,
         British Columbia and Ontario.

<PAGE>

                              ANNEX I TO SCHEDULE A

                     TO BE COMPLETED BY ONTARIO SUBSCRIBERS

The Subscriber is a resident of or otherwise subject to the securities
legislation of Ontario and is an "accredited investor", as such term is defined
in Ontario Securities Commission Rule 45-501 - Exempt Distributions ("OSC Rule
45-501"), and as at the Time of Closing, the Subscriber falls within one or more
of the following categories (Please check one or more, as applicable):

<TABLE>

<S>           <C>      <C>
_______       (a)      a bank listed in Schedule I or II of the Bank Act (Canada), or an authorized foreign bank listed in
                       Schedule III of the Bank Act (Canada);

_______       (b)      the Business Development Bank incorporated under the Business Development Bank Act (Canada);

_______       (c)      a loan corporation or trust corporation registered under the Loan and Trust Corporations Act
                       (Ontario) or under the Trust and Loan Companies Act (Canada), or under comparable legislation in any other
                       jurisdiction;

_______       (d)      a co-operative credit society, credit union central, federation of caisses populaires, credit union or
                       league, or regional caisse populaire, or an association under the Cooperative Credit Associations Act
                       (Canada), in each case, located in Canada;

_______       (e)      a company licensed to do business as an insurance company in any jurisdiction;

_______       (f)      a subsidiary entity of any person or company referred to in paragraph (a), (b), (c), (d) or (e),
                       where the person or company owns all of the voting shares of the subsidiary entity;

_______       (g)      a person or company registered under the Securities Act (Ontario) or securities legislation in another
                       jurisdiction as an adviser or dealer, other than a limited market dealer;

_______       (h)      the government of Canada or of any jurisdiction, or any crown corporation, instrumentality or agency of a
                       Canadian federal, provincial or territorial government;

_______       (i)      any Canadian municipality or any Canadian provincial or territorial capital city;

_______       (j)      any national, federal, state, provincial, territorial or municipal government of or in any foreign
                       jurisdiction, or any instrumentality or agency thereof;

_______       (k)      a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions
                       (Canada) or a provincial pension commission or similar regulatory authority;

_______       (l)      a registered charity under the Income Tax Act (Canada);

_______       (m)      an individual who beneficially owns, or who together with a spouse beneficially own, financial assets having
                       an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000;

_______       (n)      an individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose
                       net income before taxes combined with that of a spouse exceeded $300,000 in each of those years and who, in
                       either case, has a reasonable expectation of exceeding the same net income level in the current year;

</TABLE>

<PAGE>

<TABLE>

<S>           <C>      <C>
_______       (o)      an individual who has been granted registration under the Securities Act (Ontario) or securities legislation
                       in another jurisdiction as a representative of a person or company referred to in paragraph (g), whether or
                       not the individual's registration is still in effect;

_______       (p)      a promoter of the issuer or an affiliated entity of a promoter of the issuer;

_______       (q)      a spouse, parent, brother, sister, grandparent or child of an officer, director or promoter of the issuer;

_______       (r)      a person or company that, in relation to the issuer, is an affiliated entity or a person or company referred
                       to in clause (c) of the definition of distribution in subsection 1(1) of the Securities Act (Ontario);

_______       (s)      an issuer that is acquiring securities of its own issue;

_______       (t)      a company, limited liability company, limited partnership, limited liability partnership, trust or estate,
                       other than a mutual fund or non-redeemable investment fund, that had net assets of at least $5,000,000 as
                       reflected in its most recently prepared financial statements;

_______       (u)      a person or company that is recognized by the Ontario Securities Commission as an accredited investor;

_______       (v)      a mutual fund or non-redeemable investment fund that, in Ontario, distributes its securities only to
                       persons or companies that are accredited investors;

_______       (w)      a mutual fund or non-redeemable investment fund that, in Ontario, distributes its securities under a
                       prospectus for which a receipt has been granted by the Director (as defined in the Securities Act (Ontario))
                       or, if it has ceased distribution of its securities, has previously distributed its securities in
                       this manner;

_______       (x)      a fully managed account if it is acquiring a security that is not a security of a mutual fund or
                       non-redeemable investment fund;

_______       (y)      an account that is fully managed by a trust corporation registered under the Loan and Trust Corporations Act
                       (Ontario) or under the Trust and Loan Companies Act (Canada), or under comparable legislation in any other
                       jurisdiction;

_______       (z)      an entity organized outside of Canada that is analogous to any of the entities referred to in paragraphs (a)
                       through (g) and paragraph (k) in form and function; and

_______       (aa)     a person or company in respect of which all of the owners of interests, direct or indirect, legal or
                       beneficial, are persons or companies that are accredited investors.
</TABLE>

         NOTE: THE SUBSCRIBER MUST INITIAL BESIDE THE APPLICABLE CATEGORY OR
         CATEGORIES OF THE ABOVE DEFINITION. ALL MONETARY REFERENCES ARE IN
         CANADIAN DOLLARS.

         FOR THE PURPOSES HEREOF:

         (a)      "COMPANY" means any corporation, incorporated association,
                  incorporated syndicate or other incorporated organization;

         (b)      "DIRECTOR" where used in relation to a person, includes a
                  person acting in a capacity similar to that of a director of a
                  company;

<PAGE>

         (c)      "ENTITY" means a company, syndicate, partnership, trust or
                  unincorporated organization;

         (d)      "FINANCIAL ASSETS" means cash, securities, or any contract of
                  insurance or deposit or evidence thereof that is not a
                  security for the purposes of the Securities Act (Ontario);

         (e)      "INDIVIDUAL" means a natural person, but does not include a
                  partnership, unincorporated association, unincorporated
                  syndicate, unincorporated organization, trust, or a natural
                  person in his or her capacity as trustee, executor,
                  administrator or other legal personal representative;

         (f)      "MANAGED ACCOUNT" means an investment portfolio account of a
                  client established in writing with a portfolio adviser who
                  makes investment decisions for the account and has full
                  discretion to trade in securities of the account without
                  requiring the client's express consent to a transaction;

         (g)      "MUTUAL FUND" includes an issuer whose primary purpose is to
                  invest money provided by its security holders and whose
                  securities entitle the holder to receive on demand, or within
                  a specified period after demand, an amount computed by
                  reference to the value of a proportionate interest in the
                  whole or in a part of the net assets, including a separate
                  fund or trust account, of the issuer of the securities;

         (h)      "NON-REDEEMABLE INVESTMENT FUND" means an issuer:

                  (i)      whose primary purpose is to invest money provided by
                           its security holders;

                  (ii)     that does not invest for the purpose of exercising
                           effective control, seeking to exercise effective
                           control, or being actively involved in the management
                           of the issuers in which it invests, other than other
                           mutual funds or non-redeemable investment funds; and

                  (iii)    that is not a mutual fund;

         (i)      "OFFICER" means the chair, any vice-chair of the board of
                  directors, the president, any vice president, the secretary,
                  the assistant secretary, the treasurer, the assistant
                  treasurer, and the general manager of a company, and any other
                  person designated an officer of a company by by-law or similar
                  authority, or any individual acting in a similar capacity on
                  behalf of an issuer or registrant;

         (j)      "PERSON" means an individual, partnership, unincorporated
                  association, unincorporated syndicate, unincorporated
                  organization, trust, trustee, executor, administrator, or
                  other legal representative;

         (k)      "PORTFOLIO ADVISER" means

                  (i)      a portfolio manager; or

                  (ii)     a broker or investment dealer exempted from
                           registration as an adviser under subsection 148(1) of
                           the Regulation made under the Securities Act
                           (Ontario) if that broker or investment dealer is not
                           exempt from the by-laws or regulations of the Toronto
                           Stock Exchange or the Investment Dealers' Association
                           of Canada referred to in that subsection;

         (l)      "PROMOTER" means (a) a person or company who, acting alone or
                  in conjunction with one or more other persons, companies or a
                  combination thereof, directly or indirectly, has taken the
                  initiative in founding, organizing or substantially
                  reorganizing the business of the issuer, or (b) a person or
                  company who, in connection with the founding, organizing or
                  substantial reorganizing of the business of the issuer,
                  directly or indirectly, receives in consideration of services
                  or property, or both services and property, 10% or more of any
                  class of securities of the issuer or 10% or more of the
                  proceeds from the sale of any class of securities of a
                  particular issue, but a person or company who receives such
                  securities or proceeds either solely as underwriting
                  commissions or solely in consideration of property shall not
                  be deemed a promoter within the meaning of this definition if
                  such person or company does not otherwise take part in
                  founding, organizing or substantially reorganizing the
                  business;

<PAGE>

         (m)      "RELATED LIABILITIES" means liabilities incurred or assumed
                  for the purpose of financing the acquisition or ownership of
                  financial assets and liabilities that are secured by financial
                  assets; and

         (n)      "SPOUSE", in relation to an individual, means another
                  individual to whom that individual is married, or another
                  individual of the opposite sex or the same sex with whom that
                  individual is living in a conjugal relationship outside
                  marriage.

AFFILIATED ENTITIES, CONTROL AND SUBSIDIARIES

A person or company is considered to be an affiliated entity of another person
or company if one is a subsidiary entity of the other, or if both are subsidiary
entities of the same person or company, or if each of them is controlled by the
same person or company.

A person or company is considered to be controlled by a person or company if

(a)      in the case of a person or company,

         (ii)     voting securities of the first mentioned person or company
                  carrying more than 50% of the votes for the election of
                  directors are held, otherwise than by way of security only, by
                  or for the benefit of, the other person or company, and

         (iii)    the votes carried by the securities are entitled, if
                  exercised, to elect a majority of the directors of the
                  first-mentioned person or company.

(b)      in the case of a partnership that does not have directors, other than a
         limited partnership, the second-mentioned person or company holds more
         than 50% of the interests in the partnership; or

(c)      in the case of a limited partnership, the general partner is the
         second-mentioned person or company.

A person or company is considered to be a subsidiary entity of another person or
company if

(a)      it is controlled by,

         (ii)     that other, or

         (iii)    that other and one or more persons or companies each of which
                  is controlled by that other, or

         (iv)     two or more persons or companies, each of which is controlled
                  by that other, or

(b)      it is a subsidiary entity of a person or company that is the other's
         subsidiary entity.

<PAGE>

                             ANNEX II TO SCHEDULE A

           TO BE COMPLETED BY BRITISH COLUMBIA AND ALBERTA SUBSCRIBERS

The Subscriber and each beneficial Subscriber is a resident of or otherwise
subject to the securities legislation of British Columbia or Alberta and each
is, as at the Time of Closing an "accredited investor", as such term is defined
in Multilateral Instrument 45-103 - Capital Raising Exemptions ("MI45-103"), by
virtue of falling within one or more of the following categories (Please check
one or more, as applicable):

<TABLE>

<S>    <C>      <C>
[ ]    (a)      a Canadian financial institution, or an authorized foreign bank listed in Schedule III of the Bank Act (Canada);

       (b)      the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);

[ ]    (c)      an association under the Cooperative Credit Associations Act (Canada) located in Canada, or a central cooperative
                credit society for which an order has been made under subsection 473(1) of that Act;

[ ]    (d)      a subsidiary of any person or company referred to in paragraphs (a) to (c), if the person or company owns all of the
                voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that
                subsidiary;

[ ]    (e)      a person or company registered under the securities legislation of a jurisdiction of Canada, as an adviser or
                dealer, other than a limited market dealer registered under the Securities Act (Ontario) or the Securities Act
                (Newfoundland and Labrador);

[ ]    (f)      an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada, as a
                representative of a person or company referred to in paragraph (e);

[ ]    (g)      the government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the
                government of Canada or a jurisdiction of Canada.

[ ]    (h)      a municipality, public board or commission in Canada;

[ ]    (i)      any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or
                any agency of that government;

[ ]    (j)      a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a
                pension commission or similar regulatory authority of a jurisdiction of Canada;

[ ]    (k)      an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having
                an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

[ ]    (l)      an individual whose net income before taxes exceeded $200,000 in each of the two most recent years or whose net
                income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent years and who,
                in either case, reasonably expects to exceed that net income level in the current year;

[ ]    (m)      a person or company, other than a mutual fund or non redeemable investment fund, that, either alone or with a
                spouse, has net assets of at least $5,000,000, and, unless the person or company is an individual, that amount is
                shown on its most recently prepared financial statements;

[ ]    (n)      a mutual fund or non-redeemable investment fund that, in the local jurisdiction, distributes its securities only to
                persons or companies that are accredited investors;

</TABLE>

<PAGE>

<TABLE>

<S>    <C>      <C>
[ ]    (o)      a mutual fund or non-redeemable investment fund that, in the local jurisdiction, is distributing or has distributed
                its securities under one or more prospectuses for which the regulator has issued a receipt;

[ ]    (p)      a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan
                Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction,
                trading as a trustee or agent on behalf of a fully managed account;

[ ]    (q)      a person or company trading as agent on behalf of a fully managed account if that person or company is registered or
                authorized to carry on business under the securities legislation of a jurisdiction of Canada or a foreign
                jurisdiction as a portfolio manager or under an equivalent category of advisor or is exempt from registration as a
                portfolio manager of equivalent category of advisor;

[ ]    (r)      a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an
                eligibility adviser or other adviser registered to provide advice on the securities being traded;

[ ]    (s)      an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a)
                through (e) and paragraph (j) in form and function; or

[ ]    (t)      a person or company in respect of which all of the owners of interests, direct or indirect, legal or beneficial,
                except the voting securities required by law to be owned by directors, are persons or companies that are accredited
                investors.

</TABLE>

For the purposes hereof, the following definitions are included for convenience:

         "AFFILIATE" means an issuer connected with another issuer because

                  (a)      one of them is the subsidiary of the other, or

                  (b)      each of them is controlled by the same person or
                           company;

         "BENEFICIAL OWNERSHIP" of securities by a person occurs

                  (a)      for the purposes of British Columbia securities law,
                           when such securities are beneficially owned by

                           (i)      an issuer controlled by that person, or

                           (ii)     an affiliate of that person or an affiliate
                                    of an issuer controlled by that person;

                  (b)      for the purposes of Alberta securities law, when such
                           securities are beneficially owned by

                           (i)      a company controlled by that person or an
                                    affiliate of that company,

                           (ii)     an affiliate of that person, or

                           (iii)    through a trustee, legal representative,
                                    agent or other intermediary of that person;

         "CANADIAN FINANCIAL INSTITUTION" means a bank, loan corporation, trust
         company, insurance company, treasury branch, credit union or caisse
         populaire that, in each case, is authorized to carry on business in
         Canada or a jurisdiction, or the Confederation des caisses populaires
         et d'economie Desjardins du Quebec;

<PAGE>

         "CONTROL" occurs if

                  (a)      for the purposes of British Columbia securities law,

                           (i)      voting securities of a first party (person
                                    or company) are held, other than by way of
                                    security only, by or for the benefit of a
                                    second party (person or company), and

                           (ii)     the voting rights attached to those voting
                                    securities are entitled, if exercised, to
                                    elect a majority of the directors of the
                                    first party; and

                  (b)      for the purposes of Alberta securities law,

                           (i)      voting securities of a first party (person
                                    or company) carrying more than 50% of the
                                    votes that may be cast to elect directors
                                    are held, other than for the purpose of
                                    giving collateral for a bona fide debt, by
                                    or for the benefit of a second party (person
                                    or company); and

                           (ii)     the votes carried by the securities referred
                                    to in (a) are sufficient, if exercised, to
                                    elect a majority of the board of directors
                                    of the first party.

         "DIRECTOR" means

                  (a)      for the purpose of British Columbia securities law, a
                           director of a corporation or an individual occupying
                           or performing, with respect to a corporation or any
                           other person, a similar position or similar
                           functions; and

                  (b)      for purposes of Alberta law, a person acting in a
                           capacity similar to that of a director of a company;

         "FINANCIAL ASSETS" means cash and securities;

         "FOREIGN JURISDICTION" means a country other than Canada or a political
         subdivision of a country other than Canada;

         "JURISDICTION" means a province or territory of Canada except when used
         in the term "foreign jurisdiction";

         "LOCAL JURISDICTION" means the jurisdiction in which the applicable
         securities regulatory authority is situate;

         "MUTUAL FUND" includes an issuer of securities that entitles the holder
         to receive on demand, or within a specified period after demand, an
         amount computed by reference to the value of a proportionate interest
         in the whole or in a part of the net assets, including a separate fund
         or trust account, of the issuer of the securities;

         "PERSON OR COMPANY" includes

                  (c)      for the purposes of British Columbia securities law,
                           an individual, corporation, partnership, party,
                           trust, fund, association and any other organized
                           group of persons and the personal or other legal
                           representative of a person to whom the context can
                           apply according to law, and

                  (d)      for the purposes of Alberta, an individual,
                           corporation, partnership, unincorporated or
                           incorporated association, unincorporated or
                           incorporated syndicate, unincorporated or
                           incorporated organization, trust, trustee, executor,
                           administrator or other legal representative;

<PAGE>

         "REGULATOR" means

                  (e)      the Executive Director, as defined under section 1 of
                           the Securities Act (Alberta),

                  (f)      the Executive Director, as defined under section 1 of
                           the Securities Act (British Columbia) and

                  (g)      such other person as is referred to in Appendix D of
                           National Instrument 14-101 - Definitions;

         "RELATED LIABILITIES" means

                  (h)      liabilities incurred or assumed for the purpose of
                           financing the acquisition or ownership of financial
                           assets, or

                  (i)      liabilities that are secured by financial assets;

         "SECURITIES LEGISLATION" means

                  (j)      for British Columbia, the Securities Act (British
                           Columbia) and the regulations, rules and forms under
                           such Act and the blanket rulings and orders issued by
                           the British Columbia Securities Commission,

                  (k)      for Alberta, the Securities Act (Alberta) and the
                           regulations and rules under such Act and the blanket
                           rulings and orders issued by the Alberta Securities
                           Commission, and

                  (l)      for other Canadian jurisdictions, such other statutes
                           and instruments as are listed in Appendix B of
                           National Instrument 14-101 - Definitions;

         "SECURITIES REGULATORY AUTHORITY" means

                  (m)      the British Columbia Securities Commission,

                  (n)      the Alberta Securities Commission, and

                  (o)      in respect of any local jurisdiction other than
                           Alberta or British Columbia, means the securities
                           commission or similar regulatory authority listed in
                           Appendix C of National Instrument 14-101 -
                           Definitions;

         "VOTING SECURITY" means any security which:

                  (p)      is not a debt security; and

                  (q)      carries a voting right either under all circumstances
                           or under some circumstances that have occurred and
                           are continuing.

         BRITISH COLUMBIA SPECIFIC DEFINITIONS

         "SPOUSE", means, for the purposes of British Columbia securities law, a
         person who

                  (r)      is married to another person and is not living
                           separate and apart, within the meaning of the Divorce
                           Act (Canada), from the other person, or

                  (s)      is living and cohabitating with another person in a
                           marriage-like relationship, including a marriage-like
                           relationship between persons of the same gender.

<PAGE>

                                   SCHEDULE B

       CLOSE PERSONAL FRIEND AND/OR CLOSE BUSINESS ASSOCIATE QUESTIONNAIRE

         To be completed by Subscribers to whom section (b)(i)(D)(IV), (V) or
(VII) of Schedule A of the Subscription Agreement applies.

     Name of director, senior officer, control person or founder:

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

     Length of Relationship:

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

     Prior Business Dealings:

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

     Details of Relationship:

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

     The undersigned understands that the Corporation and the Agents are relying
     on this information in determining to sell securities to the undersigned in
     a manner exempt from the prospectus and registration requirements of
     applicable securities laws.

     The undersigned has executed this Questionnaire as of the ____ day of
     March, 2004.

<TABLE>

<S>                                                            <C>
    If a Corporation, Partnership or other Entity:             If an Individual:

    ---------------------------------------------------        ------------------------------------------------------
    Name of Entity                                             Signature

    ---------------------------------------------------        ------------------------------------------------------
    Type of Entity                                             Name of Individual

    ---------------------------------------------------
    Signature of Person Signing

    ---------------------------------------------------
    Title of Person Signing

</TABLE>

<PAGE>

                                   SCHEDULE C

                           U.S. REPRESENTATION LETTER

TO:         Spectrum Signal Processing Inc.

AND TO:     GMP Securities Ltd.
            Griffiths McBurney & Partners Corp.

Ladies and Gentlemen:

         In connection with the acquisition by the subscriber (the "Subscriber")
of units ("Units") consisting of one common share (a "Common Share") and
one-half of a warrant (a "Warrant") of Spectrum Signal Processing Inc. (the
"Corporation"), the Subscriber or the undersigned on behalf of the Subscriber,
as the case may be, hereby represents and agrees for the benefit of each of you
that:

1.       The Subscriber is an institution or an individual that is an
"accredited investor" as defined in Rule 501(a) of Regulation D under the
United States Securities Act of 1933, as amended (the "1933 Act"), because
it is:

                               [PLEASE CHECK ONE]

         [ ]      A bank (as defined in Section 3(a)(2) of the 1933 Act) or a
                  savings and loan association or other institution (as defined
                  in Section 3(a)(5)(A) of the 1933 Act), acting either in its
                  individual capacity or in a fiduciary capacity.

         [ ]      A broker or dealer registered under Section 15 of the
                  Securities Exchange Act of 1934, as amended.

         [ ]      An insurance company (as defined in Section 2(13) of the
                  1933 Act).

         [ ]      An investment company registered under the Investment
                  Company Act.

         [ ]      A business development company (as defined in Section
                  2(a)(48) of the Investment Company Act).

         [ ]      A private business development company (as defined in
                  Section 202(a)(22) of the Investment Advisers Act of 1940).

         [ ]      A tax-exempt organization described in Section 501(c)(3) of
                  the Internal Revenue Code of 1986, as amended, not formed for
                  the specific purpose of acquiring the Units with total assets
                  of more than U.S. $5 million.

         [ ]      A corporation, Massachusetts or similar business trust, or
                  partnership, not formed for the specific purpose of acquiring
                  the Units, with total assets of more than U.S. $5 million.

         [ ]      An employee benefit plan not subject to ERISA, with total
                  assets of more than U.S. $5 million, established and
                  maintained by a state of the United States, a political
                  subdivision of a state, or any agency or instrumentality of a
                  state or its political subdivisions for the benefit of its
                  employees.

         [ ]      A trust, with total assets in excess of U.S. $5 million, not
                  formed for the specific purpose of acquiring the Units, whose
                  purchase is directed by a sophisticated person as described in
                  Rule 506(b)(2)(ii) of Regulation D under the 1933 Act.

         [ ]      A director or executive officer of the Corporation.

<PAGE>

         [ ]      A natural person with individual net worth, or joint net
                  worth with his or her spouse, at the time of purchase in
                  excess of US$1,000,000.

         [ ]      A natural person with an individual income in excess of
                  US$200,000 in each of the last two years or joint income with
                  his or her spouse in excess of US$300,000 in each of those
                  years, and who reasonably expects to reach the same income
                  level in the current year.

         [ ]      An entity in which all of the equity owners are accredited
                  investors.

(As used herein, the term "net worth" means the excess of total assets over
total liabilities. In computing net worth, the principal residence of the
investor must be valued at cost, including cost of improvements, or at recently
appraised value by an institutional lender making a secured loan, net of
encumbrances. In determining income, an investor should add to adjusted gross
income any amount attributable to tax exempt income received, losses claimed as
a limited partner in any limited partnership, deductions claimed for depletion,
contributions to an IRA or Keogh retirement plan, alimony payments, and any
amount by which income from long-term capital gains has been reduced in arriving
at adjusted gross income.)

2.       The Subscriber is acquiring the Units for its own account and not with
a view to resale, distribution or other disposition thereof or with any present
intention of offering or selling the Units or any interest therein.

3.       The Subscriber understands and acknowledges that neither the Units nor
any interest therein has been or will be registered under the 1933 Act or the
securities laws of any state or other political subdivision of the United
States.

4.       The Subscriber further acknowledges and agrees that, because the Units
have not been registered under the 1933 Act and the Units are being offered and
sold in a private offering exempt from registration under the 1933 Act: (a) the
Units are "restricted securities" within the meaning of Rule 144(a)(3) under the
1933 Act and cannot be reoffered or resold unless they are subsequently
registered under the 1933 Act or an exemption from registration thereunder is
available; and (b) and that the Subscriber will continue to bear the economic
risk of its investment in the Securities for an indefinite period of time.

5.       The Subscriber agrees that it will not re-offer, resell, pledge,
hypothecate or otherwise transfer any of the Units (or securities that may be
received in replacement thereof or in exchange therefor) except: (a) to the
Corporation; (b) in a transaction outside the United States meeting the
requirements of Rule 904 of Regulation S under the 1933 Act; or (c) in a
transaction exempt from registration under the 1933 Act and any applicable state
securities ("blue sky") laws. The Subscriber agrees that, in connection with any
transaction pursuant to the foregoing clause (c), it will furnish to the
Corporation a written opinion of counsel acceptable to the Corporation to the
effect that such offer, sale, pledge, hypothecation or other transfer is exempt
from the registration requirements of all applicable United States federal and
state securities laws. The Subscriber also agrees that each certificate for the
Units (and any certificate issued in replacement thereof or in exchange
therefor) shall bear a restrictive legend in substantially the following form
and that an appropriate stop transfer order implementing the same shall be
lodged with the Transfer Agent for the Units:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES
ACT"). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY (A) TO THE CORPORATION, (B) IN A TRANSACTION OUTSIDE THE UNITED STATES IN
COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT, OR (C)
IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S.
SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. IN CONNECTION WITH ANY
TRANSFER PURSUANT TO THE FOREGOING CLAUSE (C), THERE MUST BE FURNISHED TO THE
CORPORATION A WRITTEN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE
CORPORATION TO THE EFFECT THAT SUCH TRANSFER IS EXEMPT FROM THE REGULATION
REQUIREMENTS OF ALL APPLICABLE UNITED STATES FEDERAL AND STATE SECURITIES LAWS.
DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF
TRANSACTIONS ON STOCK EXCHANGES

<PAGE>

IN CANADA AND, IN CONNECTION WITH ANY SALE OF SUCH SECURITIES PURSUANT TO THE
FOREGOING CLAUSE (B) AT A TIME WHEN THE CORPORATION IS A "FOREIGN ISSUER" AS
DEFINED IN RULE 902 UNDER THE U.S. SECURITIES ACT, THE LEGEND MAY BE REMOVED BY
PROVIDING A DECLARATION TO THE CORPORATION'S TRANSFER AGENT IN SUCH FORM AS THE
CORPORATION MAY REASONABLY PRESCRIBE, TO THE EFFECT THAT THE SALE OF THE
SECURITIES IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE
U.S. SECURITIES ACT."

6.       The Subscriber represents that it has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of an investment in the Units. The Subscriber acknowledges that it has had
access to such information concerning the Corporation as it has deemed necessary
to make an informed decision to purchase the Units, and has been afforded the
opportunity to ask questions and receive answers from representatives of the
Corporation regarding the Corporation and the terms and conditions relating to
investment in the Corporation, and all such questions have been answered to its
full satisfaction.

7.       The Subscriber is not purchasing the Units: (a) as a result of or
subsequent to becoming aware of any advertisement, article, notice or other
communication published in any newspaper, magazine or similar medium or
broadcast over television or radio; or (b) as a result of or subsequent to
attendance at a seminar or meeting called by any of the means set forth in (a);
or (c) as a result of or subsequent to any solicitation by a person not
previously known to it in connection with investments in securities generally.

8.       If required by applicable securities legislation, regulatory policy or
order by any securities commission, stock exchange or other regulatory
authority, the Subscriber will execute, deliver and file and otherwise assist
the Corporation in filing reports, questionnaires, undertakings and other
documents with respect to the issue of the Units.

9.       The Subscriber further acknowledges and agrees that the sale and
delivery of the Units is conditional upon such sale being exempt from the
registration requirement under the 1933 Act and the requirement to file a
prospectus and to sell through a person registered to sell securities under the
Securities Act (British Columbia) and the requirement to deliver an offering
memorandum under any applicable securities, rules and policies in both British
Columbia and the jurisdiction in which the Subscriber is subject to applicable
securities legislation. The Subscriber acknowledges and agrees that you and/or
the Corporation may be required to provide applicable Canadian provincial and
U.S. state or federal securities regulatory authorities with a list setting
forth the identities of the beneficial Subscribers of the Units. Notwithstanding
that the Subscriber may be purchasing Units as agent on behalf of an undisclosed
principal, the Subscriber agrees to provide, on request, particulars as to the
identity of such undisclosed principal as may be required by you and/or the
Corporation in order to comply with the foregoing or to comply with Canadian or
United States securities laws.

         The Subscriber acknowledges that the representations and warranties and
agreements contained herein are made by it with the intent that they may be
relied upon by you and your counsel in determining its eligibility to purchase
the Units. By this letter the Subscriber represents and warrants that the
foregoing representations and warranties are true and that they shall survive
the purchase by it of the Units and shall continue in full force and effect
notwithstanding any subsequent disposition by the Subscriber of Units.

         You are irrevocably authorized to produce this letter or a copy hereof
to any interested party. in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby. The Subscriber's investment
decision with respect to the Units was made on or prior to the date set forth
below.

Dated: March _____, 2004

                                        ________________________________________
                                        (Print name of Subscriber)

<PAGE>

                                        By: ____________________________________
                                            Name:
                                            Title:

<PAGE>

                                   SCHEDULE D

                             TORONTO STOCK EXCHANGE

                 PRIVATE PLACEMENT QUESTIONNAIRE AND UNDERTAKING

To be completed by each proposed private placement purchaser of listed
securities or securities which are convertible into listed securities.

                                  QUESTIONNAIRE

1.       DESCRIPTION OF TRANSACTION

         (a)      Name of Issuer of the Securities

                  Spectrum Signal Processing Inc.

         (b)      Number and Class of Securities to be Purchased

                  Units

         (c)      Purchase Price

                  $1.35 per Unit

2.       DETAILS OF PURCHASER

         (a)      Name of Purchaser

         (b)      Address

                  ______________________________________________________________

                  ______________________________________________________________

         (c)      Names and addresses of persons having a greater than 10%
                  beneficial interest in the purchaser

3.       RELATIONSHIP TO ISSUER

         (a)      Is the purchaser (or any person named in response to 2(c)
                  above) an insider of the issuer for the purposes of the
                  Ontario Securities Act (before giving effect to this private
                  placement)? If so, state the capacity in which the purchaser
                  (or any person named in response to 2(c)) qualifies as an
                  insider.

         (b)      If the answer to (a) is "no", are the purchaser and the issuer
                  controlled by the same person or company? If so, give details

4.       DEALINGS OF PURCHASER IN SECURITIES OF THE ISSUER

         Give details of all trading by the purchaser, as principal, in the
         securities of the issuer (other than debt securities which are not
         convertible into equity securities), directly or indirectly, within the
         60 days preceding the date hereof

<PAGE>

                  ______________________________________________________________

                  ______________________________________________________________

                  ______________________________________________________________

<PAGE>

                                   UNDERTAKING

TO:      The Toronto Stock Exchange

The undersigned has subscribed for and agreed to purchase, as principal, the
securities described in Item 1 of this Private Placement Questionnaire and
Undertaking.

The undersigned undertakes not to sell or otherwise dispose of any of the said
securities so purchased or any securities derived therefrom for a period of four
months from the date of the closing of the transaction herein or for such period
as is prescribed by applicable securities legislation, whichever is longer,
without the prior consent of the Toronto Stock Exchange and any other regulatory
body having jurisdiction.

DATED AT _______, ______________ this         __________________________________
______ day of March, 2004                     (Name of Purchaser - please print)

                                              __________________________________
                                              (Authorized Signature)

                                              __________________________________
                                              (Official Capacity - please print)

                                              __________________________________
                                              (please print here name of
                                              individual whose signature appears
                                              above, if different from name of
                                              purchaser printed above)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00064-of-00352.parquet"}]]