Document:

<PAGE>

                                                                    EXHIBIT 10.8

                    * * * * * * * * * * * * * * * * * * * *
                    ---------------------------------------

                                     Lease
                                     -----

                         WILLOW CREEK CORPORATE CENTER
                         -----------------------------

                    * * * * * * * * * * * * * * * * * * * *
                    ---------------------------------------

                                    Between
                                    -------

                   METAWAVE COMMUNICATIONS CORPORATION, INC.
                   -----------------------------------------
                                   (Tenant)
                                   --------

                                      and
                                      ---

                        CARR AMERICA REALTY CORPORATION
                        -------------------------------
                                  (Landlord)
                                  ----------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
1.   LEASE AGREEMENT                                                          2

2.   RENT                                                                     2

     A.   Types of Rent                                                       2
          (1)  Base Rent                                                      3
          (2)  Operating Cost Share Rent                                      3
          (3)  Tax Share Rent                                                 3
          (4)  Additional Rent                                                3
          (5)  Rent                                                           3
          (6)  Skybridge                                                      3
     B.   Payment of Operating Cost Share Rent and Tax Share Rent             4
          (1)  Payment of Estimated Operating Cost Share Rent and
               Tax Share Rent                                                 4
          (2)  Correction of Operating Cost Share Rent                        4
          (3)  Correction of Tax Share Rent                                   4
     C.   Definitions                                                         4
          (1)  Included Operating Costs                                       4
          (2)  Excluded Operating Costs                                       5
          (3)  Taxes                                                          6
          (4)  Lease Year                                                     7
          (5)  Fiscal Year                                                    7
     D.   Computation of Base Rent and Rent Adjustments                       7
          (1)  Prorations                                                     7
          (2)  Default Interest                                               7
          (3)  Rent Adjustments                                               8
          (4)  Books and Records                                              8
          (5)  Miscellaneous                                                  8

3.   PREPARATION AND CONDITION OF PREMISES; POSSESSION
     AND SURRENDER OF PREMISES                                                8
     A.   Condition of Premises                                               8
     B.   Tenant's Possession                                                 9
     C.   Surrender                                                           9

4.   BUILDING AND LANDLORD REPAIR                                             9
     A.   Heating and Air Conditioning                                        9
     B.   Electricity                                                         10
     C.   Water                                                               10
     D.   Janitorial Service                                                  10
     E.   Landlord's Repair Obligations                                       10
     F.   Interruption of Services                                            11
</TABLE>
<PAGE>

<TABLE>
<S>                                                                           <C>
5.   ALTERATIONS AND REPAIRS BY TENANT                                        11
     A.    Landlord's Consent and Conditions                                  11
     B.    Damage to Systems                                                  12
     C.    No Liens                                                           12
     D.    Ownership of Improvements                                          13
     E.    Removal at Termination                                             13
     F.    Tenant's Repair Obligation                                         13

6.   USE OF PREMISES                                                          14

7.   GOVERNMENTAL REQUIREMENTS AND BUILDING RULES                             14

8.   WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE                             15
     A.    Waiver of Claims                                                   15
     B.    Indemnification                                                    15
     C.    Tenant's Insurance                                                 15
     D.    Insurance Certificates                                             17
     E.    Landlord's Insurance                                               17

9.   FIRE AND OTHER CASUALTY                                                  17
     A.    Termination                                                        17
     B.    Restoration                                                        17

10.  EMINENT DOMAIN                                                           18

11.  RIGHTS RESERVED TO LANDLORD                                              18
     A.    Name                                                               18
     B.    Signs                                                              18
     C.    Window Treatments                                                  18
     D.    Keys                                                               18
     E.    Access                                                             18
     F.    Preparation for Reoccupancy                                        19
     G.    Heavy Articles                                                     19
     H.    Show Premises                                                      19
     I.    Use of Lockbox                                                     19
     J.    Repairs and Alterations                                            19
     K.    Landlord's Agents                                                  19
     L.    Building Services                                                  19
     M.    Other Actions                                                      19

12.  TENANT'S DEFAULT                                                         20
     A.    Rent Default                                                       20
     B.    Assignment/Sublease Default                                        20
     C.    Other Performance Default                                          20
</TABLE>
<PAGE>

<TABLE>
<S>                                                                           <C>
     D.    Credit Default                                                     20

13.  LANDLORD REMEDIES                                                        20
     A.    Termination of Lease or Possession                                 20
     B.    Lease Termination Damages                                          20
     C.    Possession Termination Damages                                     21
     D.    Landlord's Remedies Cumulative                                     21
     E.    WAIVER OF TRIAL BY JURY                                            21
     F.    Litigation Costs                                                   22

14.  SURRENDER                                                                22

15.  HOLDOVER                                                                 22

16.  SUBORDINATION TO GROUND LEASES AND MORTGAGES                             22
     A.    Subordination                                                      22
     B.    Termination of Ground Lease or Foreclosure of Mortgage             22
     C.    Security Deposit                                                   23
     D.    Notice and Right to Cure                                           23
     E.    Definitions                                                        23

17.  ASSIGNMENT AND SUBLEASE                                                  23
     A.    In General                                                         23
     B.    Landlord's Consent                                                 23
     C.    Procedure                                                          24
     D.    Change of Ownership                                                24
     E.    Excess Payments                                                    24

18.  CONVEYANCE BY LANDLORD                                                   24

19.  ESTOPPEL CERTIFICATE                                                     25

20.  SECURITY DEPOSIT                                                         25

21.  FORCE MAJEURE                                                            26

22.  TENANT'S PERSONAL PROPERTY AND FIXTURES                                  26

23.  NOTICES                                                                  26
     A.    Landlord                                                           26
     B.    Tenant                                                             26

24.  QUIET POSSESSION                                                         27

25.  REAL ESTATE BROKER                                                       28
</TABLE>
<PAGE>

<TABLE>
<S>                                                                           <C>
26.  MISCELLANEOUS                                                            28
     A.    Successors and Assigns                                             28
     B.    Date Payments Are Due                                              28
     C.    Meaning of "Landlord", "Re-Entry, "including" and "Affiliate"      28
     D.    Time of the Essence                                                28
     E.    No Option                                                          28
     F.    Severability                                                       28
     G.    Governing Law                                                      28
     H.    Lease Modification                                                 29
     I.    No Oral Modification                                               29
     J.    Landlord's Right to Cure                                           29
     K.    Captions                                                           29
     L.    Authority                                                          29
     M.    Landlord's Enforcement of Remedies                                 29
     N.    Entire Agreement                                                   29
     O.    Landlord's Title                                                   29
     P.    Light and Air Rights                                               29
     Q.    Singular and Plural                                                29
     R.    No Recording by Tenant                                             30
     S.    Exclusivity                                                        30
     T.    No Construction Against Drafting Party                             30
     U.    Survival                                                           30
     V.    Rent Not Based on Income                                           30
     W.    Building Manager and Service Providers                             30
     X.    Late Charge and Interest on Late Payments                          30
     Y.    Parking                                                            30
     Z.    Signage                                                            30

27.  UNRELATED BUSINESS INCOME                                                31

28.  HAZARDOUS SUBSTANCES                                                     31

29.  EXCULPATION                                                              31
</TABLE>
<PAGE>

                                     LEASE
                                     -----

     THIS LEASE (the "Lease") is made as of September 29, 1997 between
                 -----------
CARRAMERICA REALTY CORPORATION, a Maryland corporation (the "Landlord") and the
                                                             --------
Tenant as named in the Schedule below.  The term "Project" means the buildings
                                                  -------
one through six (individually the "Building" and collectively the "Buildings")
                                   --------                        ---------
known as "Willow Creek Corporate Center" and the land (the "Land") located at
                                                            ----
10525 Willows Road, Redmond, Washington 98073.  "Premises" means that part of
                                                 --------
the Project leased to Tenant described in the Schedule and outlined on Appendix
A.

     The following schedule (the "Schedule") is an integral part of this Lease.
                                  --------
Terms defined in this Schedule shall have the same meaning throughout the Lease.

                                    SCHEDULE

          I.     TENANT: Metawave Communications Corporation, Inc., a Delaware
          corporation.
          II.    PREMISES:  Buildings 1 and 2 of the Project.
          III.   RENTABLE SQUARE FEET OF THE PREMISES: Approximately 95,838
          square feet (Building 1 - 51,286 square feet, Building 2 - 44,552
          square feet).
          IV.    TENANT'S PROPORTIONATE SHARE: 28.62% (based upon a total of
          334,906 rentable square feet in the Buildings).
          V.     SECURITY DEPOSIT:  $2,500,000 Letter of Credit.
          VI.    TENANT'S REAL ESTATE BROKER FOR THIS LEASE: CB Commercial Real
          Estate Group, Inc.
          VII.   LANDLORD'S REAL ESTATE BROKER FOR THIS LEASE:  N/A.
          VIII.  TENANT IMPROVEMENTS, IF ANY: See the Tenant Improvement
          Agreement attached hereto as Appendix C.
          IX.    COMMENCEMENT DATE: June 1, 1998. If the Commencement Date is
          other than June 1, 1998, Landlord and Tenant shall execute a
          Commencement Date Confirmation substantially in the form of Appendix E
          promptly following the Commencement Date.
          X.     TERMINATION DATE/TERM: May 31, 2005, seven (7) years after the
          Commencement Date, or if the Commencement Date is not the first day of
          a month, then after the first day of the following month.
          XI.    GUARANTOR:  N/A.

                                       1
                                       -
<PAGE>

          XII.   BASE RENT.

<TABLE>
<CAPTION>
                                Annual           Monthly         Per Sq. Ft.
          Period                Base Rent        Base Rent          Rent
--------------------------------------------------------------------------------
     <S>                    <C>              <C>             <C>
6-1-98 through 5-31-01       $1,389,651.00      $115,804.25     $14.50 nnn/rsf
6-1-01 through 5-31-03       $1,557,367.50      $129,780.63     $16.25 nnn/rsf
6-1-03 through 5-31-05       $1,677,165.00      $139,763.75     $17.50 nnn/rsf

</TABLE>

          I.   APPENDICES: The following attached Appendices are an integral
          part of this Lease and incorporated herein by this reference:

     Appendix A-1 - Plan of the Premises
     Appendix A-2 - Plan of the Project
     Appendix B - Rules and Regulations
     Appendix C - Tenant Improvement Agreement
     Appendix D - Mortgages Affecting Project
     Appendix E - Commencement Date Conformation
     Appendix F - Legal Description
     Appendix G - Extension Option
     Appendix H - Expansion Option

     1.   LEASE AGREEMENT.  On the terms stated in this Lease, Landlord leases
          ---------------
the Premises to Tenant, and Tenant leases the Premises from Landlord, for the
Term beginning on the Commencement Date and ending on the Termination Date
unless extended or sooner terminated pursuant to this Lease.

     2.   RENT.
          ----

     A.   Types of Rent.  Tenant shall pay the following Rent in the form of a
          -------------
check to Landlord at the following address:

          CARRAMERICA REALTY CORPORATION
          WILLOW CREEK CORPORATE CENTER
          P.O. Box 198456
          Atlanta, GA  30384-7918

                                       2
                                       -
<PAGE>

or by wire transfer as follows:

          Account Name:      CarrAmerica Realty Corporation
          Account Number:    3255807986
          ABA Number:        061-000-052
          Bank Name:         NationsBank of Georgia
          Notification:      Jennifer Malone (CarrAmerica)
          Telephone:         202-639-3829

or in such other manner as Landlord may notify Tenant:

          (1)  Base Rent in monthly installments in advance on or before the
               ---------
first day of each month of the Term in the amount set forth on the Schedule.
Notwithstanding the foregoing, Landlord and Tenant agree that for the first six
(6) months of the Lease Term Tenant's monthly Base Rent payment shall be Eighty-
eight thousand twelve and 58/100 Dollars ($88,012.58) and, thereafter, Tenant s
Base Rent obligation shall be as set forth in the Schedule. Landlord and Tenant
agree that in the event Tenant shall occupy any portion of the approximately
23,000 square feet of Pocket Space as identified in the Tenant Improvement
Agreement, Appendix C, Section 1, the Base Rent during months one through six
(1-6) of the Lease Term shall be increased proportionately based on $14.50 PSF
for that portion of the Pocket Space occupied by Tenant.

          (2)  Operating Cost Share Rent in an amount equal to the Tenant's
               -------------------------
Proportionate Share of the Operating Costs for the applicable fiscal year of the
Lease, paid monthly in advance in an estimated amount.  Definitions of Operating
Costs and Tenant's Proportionate Share, and the method for billing and payment
of Operating Cost Share Rent are set forth in Sections 2B, 2C and 2D.

          (3)  Tax Share Rent in an amount equal to the Tenant's Proportionate
               --------------
Share of the Taxes for the applicable fiscal year of this Lease, paid monthly in
advance in an estimated amount.  A definition of Taxes and the method for
billing and payment of Tax Share Rent are set forth in Sections 2B, 2C and 2D.

          (4)  Additional Rent in the amount of all costs, expenses,
               ---------------
liabilities, and amounts which Tenant is required to pay under this Lease,
excluding Base Rent, Operating Cost Share Rent, and Tax Share Rent, but
including any interest for late payment of any item of Rent.

          (5)  Rent as used in this Lease means Base Rent, Operating Cost Share
               ----
Rent, Tax Share Rent and Additional Rent.  Tenant's agreement to pay Rent is an
independent covenant, with no right of setoff, deduction or counterclaim of any
kind, except as otherwise expressly stated herein.

          (6)  Skybridge.  Tenant hereby agrees to pay to Landlord the costs and
               ---------
expenses incurred by Landlord in the construction of the skybridge pursuant to
Appendix C(6)(b) as follows:  Tenant shall pay monthly throughout the term of
this Lease an amount per month equal to the total cost and expenses of
constructing the skybridge amortized over the seven year term of this Lease at
an annual interest rate of 10.5%.  Tenant shall not be required to remove the
skybridge at the termination of the Lease.

                                       3
                                       -
<PAGE>

     B.   Payment of Operating Cost Share Rent and Tax Share Rent.
          -------------------------------------------------------

          (1)  Payment of Estimated Operating Cost Share Rent and Tax Share Rent
               -----------------------------------------------------------------
Landlord shall estimate the Operating Costs and Taxes of the Project by April 1
of each fiscal year, or as soon as reasonably possible thereafter.  Landlord may
revise these estimates whenever it obtains more accurate information, such as
the final real estate tax assessment or tax rate for the Project.

          Within ten (10) days after receiving the original or revised estimate
from Landlord, Tenant shall pay Landlord one-twelfth (1/12th) of Tenant's
Proportionate Share of this estimate, multiplied by the number of months that
have elapsed in the applicable fiscal year to the date of such payment including
the current month, minus payments previously made by Tenant for the months
elapsed.  On the first day of each month thereafter, Tenant shall pay Landlord
one-twelfth (1/12th) of Tenant's Proportionate Share of this estimate, until a
new estimate becomes applicable.

          (2)  Correction of Operating Cost Share Rent.  Landlord shall deliver
               ---------------------------------------
to Tenant a report for the previous fiscal year (the "Operating Cost Report") by
                                                      ---------------------
April 1 of each year, or as soon as reasonably possible thereafter, setting
forth (a) the actual Operating Costs incurred, (b) the amount of Operating Cost
Share Rent due from Tenant, and (c) the amount of Operating Cost Share Rent paid
by Tenant.  Within twenty (20) days after such delivery, Tenant shall pay to
Landlord the amount due minus the amount paid.  If the amount paid exceeds the
amount due, Landlord shall apply the excess to Tenant's payments of Operating
Cost Share Rent next coming due.

          (3)  Correction of Tax Share Rent.  Landlord shall deliver to Tenant a
               ----------------------------
report for the previous fiscal year (the "Tax Report") by April 1 of each year,
                                          ----------
or as soon as reasonably possible thereafter, setting forth (a) the actual
Taxes, (b) the amount of Tax Share Rent due from Tenant, and (c) the amount of
Tax Share Rent paid by Tenant.  Within twenty (20) days after such delivery,
Tenant shall pay to Landlord the amount due from Tenant minus the amount paid by
Tenant.  If the amount paid exceeds the amount due, Landlord shall apply any
excess as a credit against Tenant's payments of Tax Share Rent next coming due.

     C.   Definitions.
          -----------

          (1)  Included Operating Costs. "Operating Costs" means any expenses,
               ------------------------   ---------------
costs and disbursements of any kind other than Taxes, paid or incurred by
Landlord in connection with the management, maintenance, operation, insurance,
repair and other related activities in connection with any part of the Project
and of the personal property, fixtures, machinery, equipment, systems and
apparatus used in connection therewith, including the cost of providing those
repair, maintenance and services required to be furnished by Landlord to the
Premises and Building under this Lease, a management fee

                                       4
                                       -
<PAGE>

in an amount equal to three percent (3%) of the annual Base Rent and accounting
and administration costs incurred by Landlord with respect to the Project.
Operating Costs shall also include the costs of any capital improvements (other
than Landlord's Work, Initial Improvements, and Additional Improvements) which
reduce Operating Costs or improve safety, and those made to keep the Project in
compliance with governmental requirements applicable from time to time
(collectively, "Included Capital Items"); provided, that the costs of any
Included Capital Item shall be amortized by Landlord, together with an amount
equal to interest at ten percent (10%) per annum, over the estimated useful life
of such item and such amortized costs are only included in Operating Costs for
that portion of the useful life of the Included Capital Item which falls within
the Term.

          If the Project is not fully occupied during any portion of any fiscal
year, Landlord may adjust (an "Equitable Adjustment") Operating Costs to equal
                               --------------------
what would have been incurred by Landlord had the Project been fully occupied.
This Equitable Adjustment shall apply only to Operating Costs which are variable
and therefore increase as occupancy of the Project increases.  Landlord may
incorporate the Equitable Adjustment in its estimates of Operating Costs.

          If Landlord does not furnish any particular service whose cost would
have constituted an Operating Cost to a tenant other than Tenant who has
undertaken to perform such service itself, Operating Costs shall be increased by
the amount which Landlord would have incurred if it had furnished the service to
such tenant.

          (2)  Excluded Operating Costs.  Operating Costs shall not include:
               ------------------------

                         (a)  costs of alterations of tenant premises;

                         (b)  costs of capital improvements other than Included
               Capital Items;

                         (c)  interest and principal payments on mortgages or
               any other debt costs, or rental payments on any ground lease of
               the Project;

                         (d)  real estate brokers' leasing commissions;

                         (e)  legal fees, space planner fees and advertising
               expenses incurred with regard to leasing the Building or portions
               thereof;

                         (f)  any cost or expenditure for which Landlord is
               reimbursed, by insurance proceeds or otherwise, except by
               Operating Cost Share Rent;

                                       5
                                       -
<PAGE>

                         (g)  the cost of any service furnished to any office
               tenant of the Project which Landlord does not make available to
               Tenant;

                         (h)  depreciation (except on any Included Capital
               Items);

                         (i)  franchise or income taxes imposed upon Landlord;

                         (j)  costs of correcting defects in construction of the
               Building, including Building Shell, Initial Improvements and
               Additional Improvements  (as opposed to the cost of normal
               repair, maintenance and replacement expected with the
               construction materials and equipment installed in the Building in
               light of their specifications);

                         (k)  legal and auditing fees which are for the benefit
               of Landlord such as collecting delinquent rents, preparing tax
               returns and other financial statements, and audits other than
               those incurred in connection with the preparation of reports
               required pursuant to Section 2B above;

                         (l)  the wages of any employee for services not related
               directly to the day to day management, maintenance, operation and
               repair of the Building; and

                         (m)  fines, penalties and interest.

                         (n)  amounts paid for deductibles on insurance carried
by Landlord relating to the Project in excess of industry standard deductibles
for insurance policies covering comparable Projects.

          (3)  Taxes.  "Taxes" means any and all taxes, assessments and charges
               -----    -----
of any kind, general or special, ordinary or extraordinary, levied against the
Project, which Landlord shall pay or become obligated to pay in connection with
the ownership, leasing, renting, management, use, occupancy, control or
operation of the Project or of the personal property, fixtures, machinery,
equipment, systems and apparatus used in connection therewith.  Taxes shall
include real estate taxes, personal property taxes, sewer rents, water rents,
special or general assessments, transit taxes, ad valorem taxes, and any tax
levied on the rents hereunder or the interest of Landlord under this Lease (the
"Rent Tax").  Taxes shall also include all fees and other costs and expenses
 --------
paid by

                                       6
                                       -
<PAGE>

Landlord in reviewing any tax and in seeking a refund or reduction of any Taxes,
whether or not the Landlord is ultimately successful.

          For any year, the amount to be included in Taxes (a) from taxes or
assessments payable in installments, shall be the amount of the installments
(with any interest) due and payable during such year, and (b) from all other
Taxes, shall at Landlord's election be the amount accrued, assessed, or
otherwise imposed for such year or the amount due and payable in such year.  Any
refund or other adjustment to any Taxes by the taxing authority, shall apply
during the year in which the adjustment is made.

          Taxes shall not include any net income (except Rent Tax), capital,
stock, succession, transfer, franchise, gift, estate or inheritance tax, except
to the extent that such tax shall be imposed in lieu of any portion of Taxes.

          (4)  Lease Year.  "Lease Year" means each consecutive twelve-month
               ----------    ----------
period beginning with the Commencement Date, except that if the Commencement
Date is not the first day of a calendar month, then the first Lease Year shall
be the period from the Commencement Date through the final day of the twelve
months after the first day of the following month, and each subsequent Lease
Year shall be the twelve months following the prior Lease Year.

          (5)  Fiscal Year.  "Fiscal Year" means the calendar year, except that
               -----------    -----------
the first fiscal year and the last fiscal year of the Term may be a partial
calendar year.

     D.   Computation of Base Rent and Rent Adjustments.
          ---------------------------------------------

          (1)  Prorations.  If this Lease begins on a day other than the first
               ----------
day of a month, the Base Rent, Operating Cost Share Rent and Tax Share Rent
shall be prorated for such partial month based on the actual number of days in
such month.  If this Lease begins on a day other than the first day, or ends on
a day other than the last day, of the fiscal year, Operating Cost Share Rent and
Tax Share Rent shall be prorated for the applicable fiscal year.

          (2)  Default Interest.  Any sum due from Tenant to Landlord not paid
               ----------------
when due shall bear interest from the date due until paid at ten and one half
percent (10.5%).

          (3)  Rent Adjustments.  The square footage of the Premises and the
               ----------------
Building set forth in the Schedule are conclusively deemed to be the actual
square footage thereof, without regard to any subsequent remeasurement of the
Premises or the Building.  If any Operating Cost paid in one fiscal year relates
to more than one fiscal year, Landlord may proportionately allocate such
Operating Cost among the related fiscal years.

                                       7
                                       -
<PAGE>

          (4)  Books and Records.  Landlord shall maintain books and records
               -----------------
reflecting the Operating Costs and Taxes in accordance with sound accounting and
management practices.  Tenant and its certified public accountant shall have the
right to inspect Landlord's records at Landlord's office upon at least seventy-
two (72) hours' prior notice during normal business hours during the ninety (90)
days following the respective delivery of the Operating Cost Report or the Tax
Report.  The results of any such inspection shall be kept strictly confidential
by Tenant and its agents, and Tenant and its certified public accountant must
agree, in their contract for such services, to such confidentiality restrictions
and shall specifically agree that the results shall not be made available to any
other tenant of the Building.  Unless Tenant sends to Landlord any written
exception to either such report within said ninety (90) day period, such report
shall be deemed final and accepted by Tenant.  Tenant shall pay the amount shown
on both reports in the manner prescribed in this Lease, whether or not Tenant
takes any such written exception, without any prejudice to such exception.  If
Tenant makes a timely exception, Landlord shall cause its independent certified
public accountant to issue a final and conclusive resolution of Tenant's
exception.  Tenant shall pay the cost of such certification unless Landlord's
original determination of annual Operating Costs or Taxes overstated the amounts
thereof by more than five percent (5%).

          (5)  Miscellaneous.  So long as Tenant is in default of any obligation
               -------------
under this Lease, Tenant shall not be entitled to any refund of any amount from
Landlord.  If this Lease is terminated for any reason prior to the annual
determination of Operating Cost Share Rent or Tax Share Rent, either party shall
pay the full amount due to the other within fifteen (15) days after Landlord's
notice to Tenant of the amount when it is determined.  Landlord may commingle
any payments made with respect to Operating Cost Share Rent or Tax Share Rent,
without payment of interest.

     3.   PREPARATION AND CONDITION OF PREMISES; POSSESSION AND SURRENDER OF
          ------------------------------------------------------------------
PREMISES.
--------

     A.   Condition of Premises.  Except to the extent of the Tenant
          ---------------------
Improvements item on the Schedule, and without limiting Landlord s duties under
other provisions of this Lease, Landlord is leasing the Premises to Tenant "as
is", without any obligation to alter, remodel, improve, repair or decorate any
part of the Premises.  Landlord shall cause the Premises to be completed in
accordance with the Tenant Improvement Agreement attached as Appendix C.

     B.   Tenant's Possession.  Tenant's taking possession on the Commencement
          -------------------
Date of any portion of the Premises shall be conclusive evidence that the
Premises was in good order, repair and condition, other than latent and other
defects which are not discoverable upon reasonable inspection by Tenant at the
time of taking possession.  If Landlord authorizes Tenant to take possession of
any part of the Premises prior to the Commencement Date for purposes of doing
business, all terms of this Lease shall apply to such pre-Term possession,
including Base Rent at the rate set forth for the First Lease

                                       8
                                       -
<PAGE>

Year in the Schedule prorated for any partial month. Notwithstanding the
foregoing, Tenant shall be granted access to the Premises thirty (30) days prior
to the Commencement Date for the purposes of installing Tenant s furniture,
fixtures and equipment.

     In the event that through no fault of Tenant, and subject to force majeure,
Landlord has not substantially completed (as defined in Appendix C) the Premises
in accordance with Appendix C by the Commencement Date, as Tenant s sole and
exclusive remedy, Landlord shall provide Tenant with two (2) days of Base Rent
abatement credit for each day of late delivery until the Premises are
substantially complete provided, however, that in the event that Premises are
not delivered within 120 days of the Commencement Date, Tenant shall have the
right to terminate this Lease.

     C.   Surrender.  Subject to Landlord's obligations set forth herein and
          ---------
paragraph 4E, throughout the Term, Tenant shall maintain, repair and replace the
Premises in their condition as of the Completion Date, loss or damage caused by
the elements, ordinary wear, and fire and other casualty excepted, and at the
termination of this Lease, or Tenant's right to possession, Tenant shall return
the Premises to Landlord in broom-clean condition.  To the extent Tenant fails
to perform either obligation, Landlord may, but need not, restore the Premises
to such condition and Tenant shall pay the cost thereof.

     4.   BUILDING AND LANDLORD REPAIR.
          ----------------------------

     Landlord shall furnish the services, repair and maintenance to the Premises
and Buildings ("Building Services"), unless otherwise stated herein, as follows:

     A.   Heating and Air Conditioning.   Landlord shall furnish heating and air
          ----------------------------
conditioning system to the Premises as part of the Building Shell to provide a
comfortable temperature, in Landlord's judgment, for normal business operations.
Tenant may install supplementary stand alone air conditioning units in the
Premises, if necessary to maintain comfortable temperature for normal business
operations, provided that such improvements by Tenant shall be of Tenant's sole
cost and expense, and subject to Landlord's reasonable prior approval and the
terms of Article 5 hereof.  Tenant shall pay to Landlord upon demand as
Additional Rent the cost of operation, repair and maintenance thereof.

     B.   Electricity. Landlord shall furnish to the Premises as part of the
          -----------
Building Shell sufficient electricity to operate normal office equipment.
Tenant shall not install or operate in the Premises any electrically operated
equipment or other machinery, other than business machines and equipment
normally employed for general office use (other than equipment installed in
Tenant's "equipment demo rooms", engineering laboratories and on the production
floor) which do not require high electricity consumption for operation.  If any
of Tenant's equipment requires electricity consumption in excess of the capacity
of the electrical system installed by Landlord in the Premises, all additional

                                       9
                                       -
<PAGE>

transformers, distribution panels and wiring that may be required to provide the
amount of electricity required for Tenant's equipment shall be installed by
Landlord at the cost and expense of Tenant except to the extent covered by the
Landlord Contribution.  Tenant shall pay the cost of electricity it consumes as
recorded by the electric meter serving the Premises directly to the electric
company.  In the event that the Premises are not separately metered, Tenant
shall be billed periodically by Landlord based upon such consumption or shall be
made part of the Operating Cost Share Rent.

     C.   Water.  Landlord shall furnish hot and cold tap water for drinking and
          -----
toilet purposes to the Premises as part of the Building Shell.  Tenant shall pay
directly to the water company for water furnished and consumed.  Tenant shall
not permit water to be wasted.

     D.   Janitorial Service.  Tenant shall provide, at its own cost and
          ------------------
expense, janitorial services to the Premises.  At Tenant's request, Landlord may
furnish janitorial to the Premises.  Tenant shall reimburse Landlord such costs
as Additional Rent.

     E.   Landlord's Repair Obligations.  Subject to Tenant's obligations set
          -----------------------------
forth in paragraph 5F below and Landlord's rights to reimbursement of costs and
expenses as set forth in this Lease, Landlord shall repair, maintain and
replace, as necessary, the Building shell, the roof, exterior walls and
structural parts of the Premises, and equipment and fixtures comprising the
Building Services (unless otherwise expressly excluded as set forth in this
paragraph 4).  Tenant shall pay to and reimburse Landlord for the cost and
expense of Landlord's obligations hereunder as Operating Costs, or if such
services are provided solely to Tenant and the Premises, Landlord shall invoice
Tenant and Tenant shall pay Landlord, as Additional Rent, the cost of such
services.  Notwithstanding the foregoing, Landlord shall not (i) be required to
make repairs necessitated by reason of the negligence or willful misconduct of
Tenant or anyone claiming under Tenant, by reason of the failure of Tenant to
perform or observe any conditions or agreements of this Lease, or by reason of
any improvements or alterations made by Tenant, or (ii) be liable to Tenant for
failure to make repairs as herein specifically required of it unless Tenant has
notified Landlord, in writing (except in emergencies) of the need for such
repairs and Landlord has failed to commence said repairs within ten (10)
business days following receipt of Tenant's notification.

     F.   Interruption of Services.  If any of the Building utilities systems,
          ------------------------
equipment or machinery provided or maintained by Landlord ceases to function
properly for any cause, Landlord shall use reasonable diligence to repair the
same promptly.  Landlord's inability to furnish, to any extent, the Building
Services set forth in this Section 4, or any cessation thereof resulting from
any causes, including any entry for repairs pursuant to this Lease, and any
renovation, redecoration or rehabilitation of any area of the Building shall not
render Landlord liable for damages to either person or property or for
interruption or loss to Tenant's business, nor be construed as an eviction of
Tenant, nor work an abatement of any portion of rent, nor relieve Tenant from
fulfillment

                                      10
                                      --
<PAGE>

of any covenant or agreement hereof; provided, however, in the event that an
interruption of the Building Services set forth in this Section 4 to the extent
caused by Landlord's negligence or performance of its duties under this Lease
causes the Premises to be untenantable for a period of at least five (5)
consecutive business days, monthly Rent shall be abated proportionately.

     5.   ALTERATIONS AND REPAIRS BY TENANT.
          ---------------------------------

     A.   Landlord's Consent and Conditions.
          ---------------------------------

     Tenant shall not make any improvements or alterations to the Premises (the
"Work"), in excess of ten thousand dollars ($10,000) without in each instance
 ----
submitting plans to Landlord and obtaining Landlord's prior written consent,
which shall not be unreasonably withheld.  For purposes of this Section, the
term "Work" shall not include Tenant's furniture, fixtures or equipment.
Landlord will be deemed to be acting reasonably in withholding its consent for
any Work which (a) impacts the base structural components or systems of the
Building, (b) impacts any other tenant's premises, or (c) is visible from
outside the Premises, with the exception of antennas installed pursuant to
Section 6 hereof.  With respect to any consent required herein, Landlord shall
respond within ten (10) days.

     Tenant shall reimburse Landlord for actual costs incurred for review of the
plans and all other items submitted by Tenant.  Tenant shall pay for the cost of
all Work.  All Work shall become the property of Landlord upon its installation,
except for Tenant's trade fixtures and for items which Landlord requires Tenant
to remove at Tenant's cost at the termination of the Lease pursuant to Section
5E.

     The following requirements shall apply to all Work:

          (1)  Prior to commencement, Tenant shall furnish to Landlord building
permits, certificates of insurance satisfactory to Landlord, and, at Landlord's
request, security for payment of all costs.

          (2)  Tenant shall perform all Work so as to maintain peace and harmony
among other contractors serving the Project and shall avoid interference with
other work to be performed or services to be rendered in the Project.

          (3)  The Work shall be performed in a good and workmanlike manner,
meeting the standard for construction and quality of materials in the Building,
and shall comply with all insurance requirements and all applicable governmental
laws, ordinances and regulations ("Governmental Requirements").
                                   -------------------------

                                      11
                                      --
<PAGE>

          (4)  Tenant shall perform all Work so as to minimize or prevent
disruption to other tenants, and Tenant shall comply with all reasonable
requests of Landlord in response to complaints from other tenants.

          (5)  Tenant shall perform all Work in compliance with Landlord's
"Policies, Rules and Procedures for Construction Projects" in effect at the time
the Work is performed.

          (6)  Tenant shall permit Landlord to supervise all Work.  Landlord may
charge a supervisory fee not to exceed five percent (5%) of labor, material, and
all other costs of the Work, if Landlord's employees or contractors perform the
Work.

          (7)  Upon completion, Tenant shall furnish Landlord with contractor's
affidavits and full and final statutory waivers of liens, as-built plans and
specifications, and receipted bills covering all labor and materials.

     B.   Damage to Systems.  If any part of the mechanical, electrical or other
          -----------------
systems in the Premises provided or maintained by landlord shall be damaged as a
result of Tenant's improvements or alterations, Tenant shall promptly notify
Landlord, and Landlord shall repair such damage.  Landlord may also at any
reasonable time make any repairs or alterations which Landlord deems necessary
for the safety or protection of the Project, or which Landlord is required to
make by any court or pursuant to any Governmental Requirement.  During any
period of Tenant's alteration or improvement of the Premises, Tenant shall at
its expense make all other repairs required as a result or caused by Tenant's
construction of alterations and improvements necessary to keep the Premises, and
Tenant's fixtures and personal property, in good order, condition and repair; to
the extent Tenant fails to do so, Landlord may make such repairs itself.  The
cost of any repairs made by Landlord on account of Tenant's default, or on
account of the mis-use or neglect by Tenant or its invitees, contractors or
agents anywhere in the Project, shall become Additional Rent payable by Tenant
on demand.

     C.   No Liens.  Tenant has no authority to cause or permit any lien or
          --------
encumbrance of any kind to affect Landlord's interest in the Project; any such
lien or encumbrance shall attach to Tenant's interest only.  If any mechanic's
lien shall be filed or claim of lien made for work or materials furnished to
Tenant, then Tenant shall at its expense within ten (10) days thereafter either
discharge or contest the lien or claim.  If Tenant contests the lien or claim,
then Tenant shall (i) within such ten (10) day period, provide Landlord adequate
security for the lien or claim, (ii) contest the lien or claim in good faith by
appropriate proceedings that operate to stay its enforcement, and (iii) pay
promptly any final adverse judgment entered in any such proceeding.  If Tenant
does not comply with these requirements, Landlord may discharge the lien or
claim, and the amount paid, as well as attorney's fees and other expenses
incurred by Landlord, shall become Additional Rent payable by Tenant on demand.

                                      12
                                      --
<PAGE>

     D.   Ownership of Improvements.  All improvements, alterations or work to
          -------------------------
the Premises as defined in this Section 5, partitions, hardware, equipment,
machinery and all other improvements and all fixtures except trade fixtures,
constructed in the Premises by either Landlord or Tenant, (i) shall become
Landlord's property upon installation without compensation to Tenant, unless
Landlord consents otherwise in writing, and (ii) shall at Landlord's option
either (a) be surrendered to Landlord with the Premises at the termination of
the Lease or of Tenant's right to possession, or (b) be removed in accordance
with Subsection 5E below (unless Landlord at the time it gives its consent to
the performance of such construction expressly waives in writing the right to
require such removal).

     E.   Removal at Termination.  Upon the termination of this Lease or
          ----------------------
Tenant's right of possession Tenant shall remove from the Project its trade
fixtures, furniture, moveable equipment and other personal property, any
improvements which Landlord elects shall be removed by Tenant pursuant to
Section 5D, and any improvements to any portion of the Project other than the
Premises, provided, however, that Tenant is not required to remove any Initial
Improvements, Additional Improvements, Landlord's Work, or the skybridge.  If
Tenant does not timely remove such property, then Tenant shall be conclusively
presumed to have, at Landlord's election (i) conveyed such property to Landlord
without compensation or (ii) abandoned such property, and Landlord may dispose
of or store any part thereof in any manner at Tenant's sole cost, without
waiving Landlord's right to claim from Tenant all expenses arising out of
Tenant's Sailure to remove the property, and without liability to Tenant or any
other person. Landlord shall have no duty to be a bailee of any such personal
property. If Landlord elects abandonment, Tenant shall pay to Landlord, upon
demand, any expenses incurred for disposition.

     F.   Tenant's Repair Obligation.  Subject to Landlord's obligations set
          --------------------------
forth in paragraph 4E, Tenant shall, throughout the term of this Lease and at
its own cost and expense, maintain, repair and replace, as necessary, or
required by applicable law or ordinances, the Premises improvements, fixtures,
equipment, mechanical and electrical systems in their condition as of the
Commencement Date, ordinary wear and tear excepted.  Tenant shall provide its
own garbage service to the Premises at its own cost and expense.  All
replacements made by Tenant shall be of like kind and quality to the items
replaced as they existed when originally installed.  With respect to any
maintenance or repair of mechanical and electrical systems in the Premises and
required be maintained by Tenant hereunder, Tenant shall contract and pay for
periodic inspection and maintenance and the repair and replacement, as
necessary, subject to the Landlord's approval and satisfaction which shall not
be unreasonably withheld or delayed.

     6.   USE OF PREMISES.  Tenant shall use the Premises only for general
          ---------------
office and light manufacturing purposes, which shall include product
demonstration to customers, equipment testing and storage.  Tenant shall not
allow any use of the Premises which will negatively affect the cost of coverage
of Landlord's insurance on the Project.

                                      13
                                      --
<PAGE>

Tenant shall not allow any inflammable or explosive liquids or materials to be
kept on the Premises (other than propane tanks used for vehicles on the
Premises). Tenant shall not allow any use of the Premises which would cause the
value or utility of any part of the Premises to diminish or would interfere with
any other Tenant or with the operation of the Project by Landlord. Tenant shall
not permit any nuisance or waste upon the Premises, or allow any offensive noise
or odor in or around the Premises.

     If any governmental authority shall deem the Premises to be a "place of
public accommodation" under the Americans with Disabilities Act or any other
comparable law as a result of Tenant's use, Tenant shall either modify its use
to cause such authority to rescind its designation or be responsible for any
alterations, structural or otherwise, required to be made to the Building or the
Premises under such laws.

     Tenant, its employees, agents, contractors or invitees shall be allowed
access to the building roof for the purpose of installing servicing, monitoring,
testing and changing its equipment; provided that Landlord shall be notified
prior to any installation work and such work satisfies the requirements of
Section 3 and 5.

     7.   GOVERNMENTAL REQUIREMENTS AND BUILDING RULES.  Landlord shall comply
          --------------------------------------------
with all Governmental Regulations applicable to the design or construction of
the Premises, the Building shell, the Initial Improvements and the Additional
Improvements.  Tenant shall comply with all Governmental Requirements applying
to its use of the Premises.  Tenant shall also comply with all reasonable rules
established for the Project from time to time by Landlord.  The present rules
and regulations are contained in Appendix B.  Failure by another tenant to
comply with the rules or failure by Landlord to enforce them shall not relieve
Tenant of its obligation to comply with the rules or make Landlord responsible
to Tenant in any way.  Landlord shall use reasonable efforts to apply the rules
and regulations uniformly with respect to Tenant and tenants in the Project
under leases containing rules and regulations similar to this Lease.  In the
event of alterations and repairs performed by Tenant, Tenant shall comply with
the provisions of Section 5 of this Lease and also landlord s Policies, Rules
and Regulations for Construction Projects".

     8.   WAIVER OF CLAIMS; INDEMNIFICATION; INSURANCE.
          --------------------------------------------

     A.   Waiver of Claims.  To the extent permitted by law, Tenant waives any
          ----------------
claims it may have against Landlord or its officers, directors, employees or
agents for business interruption or damage to property sustained by Tenant
constituting insurable risks covered by the insurance policies required to be
maintained by the parties hereunder as the result of any act or omission of
Landlord.

     To the extent permitted by law, Landlord waives any claims it may have
against Tenant or its officers, directors, employees or agents for loss of rents
or damage to property sustained by Landlord constituting insurable risks covered
by the insurance

                                      14
                                      --
<PAGE>

policies required to be maintained by the parties hereunder as the result of any
act or omission of Tenant.

     B.   Indemnification.  Tenant shall indemnify, defend and hold harmless
          ---------------
Landlord and its officers, directors, employees and agents against any claim by
any third party for injury to any person or damage to or loss of any property
occurring in the Project and arising from the use of the Premises or from any
other act or omission or negligence of Tenant or any of Tenant's employees or
agents.  Tenant's obligations under this section shall survive the termination
of this Lease.

     Landlord shall indemnify, defend and hold harmless Tenant and its officers,
directors, employees and agents against any claim by any third party for injury
to any person or damage to or loss of any property occurring in the Project and
arising from any other act or omission or negligence of Landlord or any of
Landlord's employees or agents.  Landlord's obligations under this section shall
survive the termination of this Lease.

     TENANT HEREBY WAIVES ITS IMMUNITY WITH RESPECT TO LANDLORD UNDER THE
INDUSTRIAL INSURANCE ACT (RCW TITLE 51) AND/OR THE LONGSHOREMAN S AND
HARBORWORKER S ACT AND/OR ANY EQUIVALENT ACTS AND TENANT EXPRESSLY AGREES TO
ASSUME POTENTIAL LIABILITY FOR ACTIONS BROUGHT AGAINST LANDLORD BY TENANT S
EMPLOYEES EXCEPT TO THE EXTENT CAUSED BY LANDLORD.  THIS WAIVER HAS BEEN
SPECIFICALLY NEGOTIATED BY THE PARTIES TO THIS LEASE AND TENANT HAS HAD THE
OPPORTUNITY TO, AND HAS BEEN ENCOURAGED, TO CONSULT WITH INDEPENDENT COUNSEL
REGARDING THIS WAIVER.

     C.   Tenant's Insurance.  Tenant shall maintain insurance as follows, with
          ------------------
such other terms, coverages and insurers, as Landlord shall reasonably require
from time to time:

          (1)  Commercial General Liability Insurance, with (a) Contractual
Liability including the indemnification provisions contained in this Lease, (b)
a severability of interest endorsement, (c) limits of not less than One Million
Dollars ($1,000,000) combined single limit per occurrence and not less than Two
Million Dollars ($2,000,000) in the aggregate for bodily injury, sickness or
death, and property damage, and umbrella coverage of not less than Five Million
Dollars ($5,000,000).

          (2)  Property Insurance against "Special Form, All Risks" of physical
loss covering the replacement cost of all improvements, fixtures and personal
property.

          (3)  Workers  compensation or similar insurance in form and amounts
required by law, and Employers  Liability with not less than the following
limits:

                                      15
                                      --
<PAGE>

                      Each Accident             $100,000
                      Disease--Policy Limit     $500,000
                      Disease--Each Employee    $100,000

     Tenant's insurance shall be primary and not contributory to that carried by
Landlord, its agents, or mortgagee.  Landlord, and if any, Landlord s building
manager or agent and ground lessor shall be named as additional insureds as
respects to insurance required of the Tenant in Section 8C(1).  The company or
companies writing any insurance which Tenant is required to maintain under this
Lease, as well as the form of such insurance, shall at all times be subject to
Landlord's approval, and any such company shall be licensed to do business in
the state in which the Building is located.  Such insurance companies shall have
a A.M. Best rating of A VI or better.

     Tenant shall cause any contractor of Tenant performing work on the Premises
to maintain insurance as follows, with such other terms, coverages and insurers,
as Landlord shall reasonably require from time to time:

          (1)  Commercial General Liability Insurance, including contractor's
liability coverage, contractual liability coverage, completed operations
coverage, broad form property damage endorsement, and contractor's protective
liability coverage, to afford protection with limits, for each occurrence, of
not less than One Million Dollars ($1,000,000) with respect to personal injury,
death or property damage.

          (2)  Workers compensation or similar insurance in form and amounts
required by law, and Employer's Liability with not less than the following
limits:

                      Each Accident             $100,000
                      Disease--Policy Limit     $500,000
                      Disease--Each Employee    $100,000

     Tenant's contractor's insurance shall be primary and not contributory to
that carried by Tenant, Landlord, their agents or mortgagees.  Tenant and
Landlord, and if any, Landlord's building manager or agent, mortgagee or ground
lessor shall be named as additional insured on Tenant's contractor's insurance
policies.

     D.   Insurance Certificates.  Tenant shall deliver to Landlord certificates
          ----------------------
evidencing all required insurance no later than five (5) days prior to the
Commencement Date and each renewal date.  Each certificate will provide for
thirty (30) days prior written notice of cancellation to Landlord and Tenant.

     E.   Landlord's Insurance.  Landlord shall maintain "Special Form, All-
          --------------------
Risk" property insurance at replacement cost, including loss of rents, on the
Building, and Commercial General Liability insurance policies covering the
common areas of the

                                      16
                                      --
<PAGE>

Building, each with such terms, coverages and conditions as are normally carried
by reasonably prudent owners of properties similar to the Project.

     F.   Waiver of Subrogation.  With respect to all policies of insurance to
          ---------------------
be maintained hereunder by Tenant and Landlord, Landlord and Tenant mutually
waive all rights of subrogation, and the respective "All-Risk" coverage property
insurance policies carried by Landlord and Tenant shall contain enforceable
waiver of subrogation endorsements.

     9.   FIRE AND OTHER CASUALTY.
          -----------------------

     A.   Termination.  If a fire or other casualty causes substantial damage to
          -----------
the Building or the Premises, Landlord shall engage a registered architect to
certify within one (1) month of the casualty to both Landlord and Tenant the
amount of time needed to restore the Building and the Premises to tenantability,
using standard working methods.  If the time needed exceeds twelve (12) months
from date of damage, or two (2) months therefrom if the restoration would begin
during the last twelve (12) months of the Lease, then in the case of the
Premises, either Landlord or Tenant may terminate this lease, and in the case of
the Building, Landlord may terminate this Lease, by notice to the other party
within ten (10) days after the notifying party's receipt of the architect's
certificate.  The termination shall be effective thirty (30) days from the date
of the notice and Rent shall be paid by Tenant to that date, with an abatement
for any portion of the Premises which has been untenantable after the casualty.

     B.   Restoration.  If a casualty causes damage to the Building or the
          -----------
Premises but this Lease is not terminated for any reason, then subject to the
rights of any mortgagees or ground lessors, Landlord shall obtain the applicable
insurance proceeds and diligently restore the Building and the Premises subject
to current Governmental Requirements.  Tenant shall replace its damaged
improvements, personal property and fixtures.  Rent shall be abated on a per
diem basis during the restoration for any portion of the Premises which is
untenantable, except to the extent that Tenant's negligence caused the casualty.

     10.  EMINENT DOMAIN.  If a part of the Project is taken by eminent domain
          --------------
or deed in lieu thereof which is so substantial that the Premises cannot
reasonably be used by Tenant for the operation of its business, then either
party may terminate this Lease effective as of the date of the taking.  In the
event that seventy five percent (75%) or more of the Project is taken without
affecting the Premises, then Landlord may terminate this Lease as of the date of
such taking.  Rent shall abate from the date of the taking in proportion to any
part of the Premises taken.  Subject to Tenant's rights to pursue claims
described below, the entire award for a taking of any kind shall be paid to
Landlord, and Tenant shall have no right to share in the award.  All obligations
accrued to the date of the taking shall be performed by each party.
Notwithstanding the foregoing, nothing herein shall be deemed a waiver of
Tenant's rights to receive an award for a

                                      17
                                      --
<PAGE>

taking of its personal property, good will, relocation expense and/or interest
in the Lease provided Tenant's award does not reduce or adversely affect
Landlord's award.

     11.  RIGHTS RESERVED TO LANDLORD.
          ---------------------------

     Landlord may exercise at any time any of the following rights respecting
the operation of the Project without liability to the Tenant of any kind:

     A.   Name.  To change the name or street address (but only to extent such
          ----
changes in street address is required by a governmental authority) of the
Building or the suite number(s) of the Premises.

     B.   Signs.  Subject to applicable law, to install and maintain any signs
          -----
on the exterior and in the interior of the Building, and to approve at its
reasonable discretion, prior to installation, any of Tenant's signs in the
Premises visible from the common areas or the exterior of the Building.

     C.   Window Treatments.  To approve, at its discretion, prior to
          -----------------
installation, any shades, blinds, ventilators or window treatments of any kind,
as well as any lighting within the Premises that may be visible from the
exterior of the Building or any interior common area.

     D.   Keys.  To retain and use at any time passkeys to enter the Premises or
          ----
any door within the Premises after reasonable notice (except in emergency).

     E.   Access.  To have access to inspect the Premises, and to perform its
          ------
obligations, or make repairs, alterations, additions or improvements, as
permitted by this Lease.

     F.   Preparation for Reoccupancy.  To decorate, remodel, repair, alter or
          ---------------------------
otherwise prepare the Premises for reoccupancy at any time after Tenant abandons
the Premises, without relieving Tenant of any obligation to pay Rent.

     G.   Heavy Articles.  To approve the weight, size, placement and time and
          --------------
manner of movement within the Building of any safe, central filing system or
other heavy article of Tenant's property.  Tenant shall move its property
entirely at its own risk.

     H.   Show Premises.  To show the Premises to prospective purchasers,
          -------------
tenants, brokers, lenders, investors, rating agencies or others at any
reasonable time, provided that Landlord gives prior notice to Tenant and does
not materially interfere with Tenant's use of the Premises.

     I.   Use of Lockbox.  To designate a lockbox collection agent for
          --------------
collections of amounts due Landlord.  In that case, the date of payment of Rent
or other sums shall be

                                      18
                                      --
<PAGE>

the date of the agent's receipt of such payment or the date of actual collection
if payment is made in the form of a negotiable instrument thereafter dishonored
upon presentment. However, Landlord may reject any payment for all purposes as
of the date of receipt or actual collection by mailing to Tenant within 21 days
after such receipt or collection a check equal to the amount sent by Tenant.

     J.   Repairs and Alterations.  To make repairs or alterations to the
          -----------------------
Project and in doing so transport any required material through the Premises, to
close entrances, doors, corridors, elevators and other facilities in the
Project, to open any ceiling in the Premises, or to temporarily suspend services
or use of common areas in the Building.  Landlord may perform any such repairs
or alterations during ordinary business hours, provided that Landlord gives
prior notice to Tenant and does not materially interfere with Tenant s use of
the Premises, except that Tenant may require any Work in the Premises to be done
after business hours if Tenant pays Landlord for overtime and any other expenses
incurred.  Landlord may do or permit any work on any nearby building, land,
street, alley or way.

     K.   Landlord's Agents.  If Tenant is in default under this Lease,
          -----------------
possession of Tenant's funds or negotiation of Tenant's negotiable instrument by
any of Landlord's agents shall not waive any breach by Tenant or any remedies of
Landlord under this Lease.

     L.   Building Services.  To install, use and maintain through the Premises,
          -----------------
pipes, conduits, wires and ducts serving the Building, provided that such
installation, use and maintenance does not unreasonably interfere with Tenant's
use of the Premises.

     M.   Other Actions.  To take any other action which Landlord deems
          -------------
reasonable in connection with the operation, maintenance or preservation of the
Building.

     12.  TENANT'S DEFAULT.
          ----------------

     Any of the following shall constitute a default by Tenant:

     A.   Rent Default.  Tenant fails to pay any Rent when due within five (5)
          ------------
days of written notice to Tenant.

     B.   Assignment/Sublease Default.  Tenant defaults in its obligations under
          ---------------------------
Section 17 Assignment and Sublease;

     C.   Other Performance Default.  Tenant fails to perform any other
          -------------------------
obligation to Landlord under this Lease, and, in the case of only the first two
(2) such failures during the Term of this Lease, this failure continues for ten
(10) days after written notice from Landlord, except that if Tenant begins to
cure its failure within the ten (10) day period but cannot reasonably complete
its cure within such period, then, so long as Tenant continues

                                      19
                                      --
<PAGE>

to diligently attempt to cure its failure, the ten (10) day period shall be
extended to sixty (60) days, or such lesser period as is reasonably necessary to
complete the cure;

     D.   Credit Default.  One of the following credit defaults occurs:
          --------------

          (1)  Tenant commences any proceeding under any law relating to
bankruptcy, insolvency, reorganization or relief of debts, or seeks appointment
of a receiver, trustee, custodian or other similar official for the Tenant or
for any substantial part of its property, or any such proceeding is commenced
against Tenant and either remains undismissed for a period of thirty days or
results in the entry of an order for relief against Tenant which is not fully
stayed within seven days after entry;

          (2)  Tenant becomes insolvent or bankrupt, does not generally pay its
debts as they become due, or admits in writing its inability to pay its debts,
or makes a general assignment for the benefit of creditors;

     13.  LANDLORD REMEDIES.
          -----------------

     A.   Termination of Lease or Possession.  If Tenant defaults, Landlord may
          ----------------------------------
elect by notice to Tenant either to terminate this Lease or to terminate
Tenant's possession of the Premises without terminating this Lease.  In either
case, Tenant shall immediately vacate the Premises and deliver possession to
Landlord, and Landlord may repossess the Premises and may, at Tenant's sole
cost, remove any of Tenant's signs and any of its other property, without
relinquishing its right to receive Rent or any other right against Tenant.

     B.   Lease Termination Damages.  If Landlord terminates the Lease, Tenant
          -------------------------
shall pay to Landlord all Rent due on or before the date of termination, plus
Landlord's reasonable estimate of the aggregate Rent that would have been
payable from the date of termination through the Termination Date, reduced by
the rental value of the Premises calculated as of the date of termination for
the same period, taking into account reletting expenses and market concessions,
both discounted to present value at the rate of five percent (5%) per annum.  If
Landlord shall relet any part of the Premises for any part of such period before
such present value amount shall have been paid by Tenant or finally determined
by a court, then the amount of Rent payable pursuant to such reletting (taking
into account any concessions) shall be deemed to be the reasonable rental value
for that portion of the Premises relet during the period of the reletting.

     C.   Possession Termination Damages.  If Landlord terminates Tenant's right
          ------------------------------
to possession without terminating the Lease and Landlord takes possession of the
Premises itself, Landlord may relet any part of the Premises for such Rent, for
such time, and upon such terms as Landlord in its sole discretion shall
determine, without any obligation to do so prior to renting other vacant areas
in the Building.  Any proceeds from reletting the Premises shall first be
applied to the expenses of reletting, including redecoration, repair,
alteration, advertising, brokerage, legal, and other reasonably necessary
expenses.  If the

                                      20
                                      --
<PAGE>

reletting proceeds after payment of expenses are insufficient to pay the full
amount of Rent under this Lease, Tenant shall pay such deficiency to Landlord
monthly upon demand as it becomes due. Any excess proceeds shall be retained by
Landlord.

     D.   Landlord's Remedies Cumulative.  All of Landlord's remedies under this
          ------------------------------
Lease shall be in addition to all other remedies Landlord may have at law or in
equity.  Waiver by Landlord of any breach of any obligation by Tenant shall be
effective only if it is in writing, and shall not be deemed a waiver of any
other breach, or any subsequent breach of the same obligation.  Landlord's
acceptance of payment by Tenant shall not constitute a waiver of any breach by
Tenant, and if the acceptance occurs after Landlord's notice to Tenant, or
termination of the Lease or of Tenant's right to possession, the acceptance
shall not affect such notice or termination.  Acceptance of payment by Landlord
after commencement of a legal proceeding or final judgment shall not affect such
proceeding or judgment.  Landlord may advance such monies and take such other
actions for Tenant s account as reasonably may be required to cure or mitigate
any default by Tenant.  Tenant shall immediately reimburse Landlord for any such
advance, and such sums shall bear interest at the default interest rate until
paid.

     E.   WAIVER OF TRIAL BY JURY.  EACH PARTY WAIVES TRIAL BY JURY IN THE EVENT
          -----------------------
OF ANY LEGAL PROCEEDING BROUGHT BY THE OTHER IN CONNECTION WITH THIS LEASE.
EACH PARTY SHALL BRING ANY ACTION AGAINST THE OTHER IN CONNECTION WITH THIS
LEASE IN A FEDERAL OR STATE COURT LOCATED IN WASHINGTON, CONSENTS TO THE
JURISDICTION OF SUCH COURTS, AND WAIVES ANY RIGHT TO HAVE ANY PROCEEDING
TRANSFERRED FROM SUCH COURTS ON THE GROUND OF IMPROPER VENUE OR INCONVENIENT
FORUM.

     F.   Litigation Costs.  Tenant shall pay Landlord's reasonable attorneys'
          ----------------
fees and other costs in any action brought to enforce this Lease.

     14.  SURRENDER.  Upon termination of this Lease or Tenant's right to
          ---------
possession, Tenant shall return the Premises to Landlord in good order and
condition, ordinary wear and casualty damage excepted.  If Landlord requires
Tenant to remove any alterations, then Tenant shall remove the alterations in a
good and workmanlike manner and restore the Premises to its condition prior to
their installation.

     15.  HOLDOVER.  If Tenant retains possession of any part of the Premises
          --------
after the Term, Tenant shall become a month-to-month tenant for the entire
Premises upon all of the terms of this Lease as might be applicable to such
month-to-month tenancy, except that Tenant shall pay all of Base Rent, Operating
Cost Share Rent and Tax Share Rent at one hundred twenty five percent (125%) of
the rate in effect immediately prior to such holdover, computed on a monthly
basis for each full or partial month Tenant remains in possession.  Tenant shall
also pay Landlord all of Landlord's

                                       21
<PAGE>

direct and consequential damages if such holdover is without consent. No
acceptance of Rent or other payments by Landlord under these holdover provisions
shall operate as a waiver of Landlord's right to regain possession or any other
of Landlord's remedies.

     16.  SUBORDINATION TO GROUND LEASES AND MORTGAGES.
          --------------------------------------------

     A.   Subordination.  Subject to Section 16B, this Lease shall be
          -------------
subordinate to any present or future ground lease or mortgage respecting the
Project, and any amendments to such ground lease or mortgage, at the election of
the ground lessor or mortgagee as the case may be, effected by notice to Tenant
in the manner provided in this Lease. The subordination shall be effective upon
such notice, but at the request of Landlord or ground lessor or mortgagee,
Tenant shall within ten (10) days of the request, execute and deliver to the
requesting party any reasonable documents provided to evidence the
subordination.

     B.   Termination of Ground Lease or Foreclosure of Mortgage.  If any ground
          ------------------------------------------------------
lease is terminated or mortgage foreclosed or deed in lieu of foreclosure given
and the ground lessor, mortgagee, or purchaser at a foreclosure sale shall
thereby become the owner of the Project, Tenant shall attorn to such ground
lessor or mortgagee or purchaser without any deduction or setoff by Tenant, and
this Lease shall continue in effect as a direct lease between Tenant and such
ground lessor, mortgagee or purchaser. The ground lessor or mortgagee or
purchaser shall be liable as Landlord only during the time such ground lessor or
mortgagee or purchaser is the owner of the Project. At the request of Landlord,
ground lessor or mortgagee, Tenant shall execute and deliver within ten (10)
days of the request any document furnished by the requesting party to evidence
Tenant's agreement to attorn.

     C.   Security Deposit.  Any ground lessor or mortgagee shall be responsible
          ----------------
for the return of any security deposit by Tenant only to the extent the security
deposit is received by such ground lessor or mortgagee.

     D.   Notice and Right to Cure.  The Project is subject to any ground lease
          ------------------------
and mortgage identified with name and address of ground lessor or mortgagee in
Appendix D to this Lease (as the same may be amended from time to time by
written notice to Tenant). Tenant agrees to send by registered or certified mail
to any ground lessor or mortgagee identified either in such Appendix or in any
later notice from Landlord to Tenant a copy of any notice of default sent by
Tenant to Landlord. If Landlord fails to cure such default within the required
time period under this Lease, but ground lessor or mortgagee begins to cure
within ten (10) days after such period and proceeds diligently to complete such
cure, then ground lessor or mortgagee shall have such additional time as is
necessary to complete such cure, including any time necessary to obtain
possession if possession is necessary to cure, and Tenant shall not begin to
enforce its remedies so long as the cure is being diligently pursued.

                                       22
<PAGE>

     E.   Definitions.  As used in this Section 16, "mortgage" shall include
          -----------
"trust deed" and "mortgagee" shall include "trustee", "mortgagee" shall include
the mortgagee of any ground lessee, and "ground lessor", "mortgagee", and
"purchaser at a foreclosure sale" shall include, in each case, all of its
successors and assigns, however remote.

     17.  ASSIGNMENT AND SUBLEASE.
          -----------------------

     A.   In General.  Tenant shall not, without the prior consent of Landlord
          ----------
in each case, (i) make or allow any assignment or transfer, by operation of law
or otherwise, of any part of Tenant's interest in this Lease, (ii) grant or
allow any lien or encumbrance, by operation of law or otherwise, upon any part
of Tenant's interest in this Lease, (iii) sublet any part of the Premises, or
(iv) permit anyone other than Tenant and its employees to occupy any part of the
Premises. Tenant shall remain primarily liable for all of its obligations under
this Lease, notwithstanding any assignment or transfer. No consent granted by
Landlord shall be deemed to be a consent to any subsequent assignment or
transfer, lien or encumbrance, sublease or occupancy. Tenant shall pay
reasonable Landlord's attorneys' fees and other expenses incurred in connection
with any consent requested by Tenant or in reviewing any proposed assignment or
subletting. Any assignment or transfer, grant of lien or encumbrance, or
sublease or occupancy without Landlord's prior written consent shall be void.

     B.   Landlord's Consent.  Landlord will not unreasonably withhold its
          ------------------
consent to any proposed assignment or subletting. It shall be reasonable for
Landlord to withhold its consent to any assignment or sublease if (i) Tenant is
in default under this Lease, (ii) the proposed assignee or sublessee is a tenant
in the Project and Landlord has appropriate available space in the Project,
(iii) the financial condition, nature of business, and character of the proposed
assignee or subtenant are not all reasonably satisfactory to Landlord, (iv) in
the reasonable judgment of Landlord the purpose for which the assignee or
subtenant intends to use the Premises (or a portion thereof) is not in keeping
with Landlord's standards for the Building or are in violation of the terms of
this Lease or any other leases in the Project. The foregoing shall not exclude
any other reasonable basis for Landlord to withhold its consent.

     C.   Procedure.  Tenant shall notify Landlord of any proposed assignment or
          ---------
sublease at least thirty (30) days prior to its proposed effective date. The
notice shall include the name and address of the proposed assignee or subtenant,
its corporate affiliates in the case of a corporation and its partners in a case
of a partnership, an execution copy of the proposed assignment or sublease, and
sufficient information to permit Landlord to determine the financial condition
and character of the proposed assignee or subtenant. As a condition to any
effective assignment of this Lease, the assignee shall execute and deliver in
form satisfactory to Landlord at least fifteen (15) days prior to the effective
date of the assignment, an assumption of all of the obligations of Tenant under
this Lease. As a condition to any effective sublease, subtenant shall execute
and deliver in form satisfactory to Landlord at least fifteen (15) days prior to
the

                                      23
                                      --
<PAGE>

effective date of the sublease, an agreement to comply with all of Tenant's
obligations under this Lease, and at Landlord's option, an agreement (except for
the economic obligations which subtenant will undertake directly to Tenant) to
attorn to Landlord under the terms of the sublease in the event this Lease
terminates before the sublease expires.

     D.   Change of Ownership.  Any direct or indirect change in 50% or more of
          -------------------
the ownership interest in Tenant shall constitute an assignment of this Lease;
provided, however, that Landlord hereby consents to any such assignment that is
in connection with (i) transfer of shares between existing shareholders, (ii)
redemption of shares by Tenant, or (iii) a public offering of Tenant s stock
under the Securities Act of 1933, as amended. Notwithstanding Landlord's prior
consent to the foregoing, Tenant shall provide Landlord with written notice
required hereunder.

     E.   Excess Payments.  If Tenant shall assign this Lease or sublet any part
          ---------------
of the Premises for consideration in excess of the pro-rata portion of Rent
applicable to the space subject to the assignment or sublet, then Tenant shall
pay to Landlord as Additional Rent 50% of any such excess immediately upon
receipt.

     18.  CONVEYANCE BY LANDLORD.  If Landlord shall at any time transfer its
          ----------------------
interest in the Project or this Lease, provided that the transferee shall
expressly assume in writing all duties of Landlord in this Lease, Landlord shall
be released of any obligations accruing after such transfer, except the
obligation to return to Tenant any security deposit not delivered to its
transferee, and Tenant shall look solely to Landlord's successors for
performance of such obligations. This Lease shall not be affected by any such
transfer.

     19.  ESTOPPEL CERTIFICATE.  Each party shall, within ten (10) days of
          --------------------
receiving a request from the other party, execute, acknowledge in recordable
form, and deliver to the other party or its designee a certificate stating,
subject to a specific statement of any applicable exceptions, that the Lease as
amended to date is in full force and effect, that the Tenant is paying Rent and
other charges on a current basis, and that to the best of the knowledge of the
certifying party, the other party has committed no uncured defaults and has no
offsets or claims. The certifying party may also be required to state the date
of commencement of payment of Rent, the Commencement Date, the Termination Date,
the Base Rent, the current Operating Cost Share Rent and Tax Share Rent
estimates, the status of any improvements required to be completed by Landlord,
the amount of any security deposit, and such other matters as may be reasonably
requested. Failure to deliver such statement within the time required shall be
conclusive evidence against the non-certifying party that this Lease, with any
amendments identified by the requesting party, is in full force and effect, that
there are no uncured defaults by the requesting party, that not more than one
month's Rent has been paid in advance, that the non-certifying party has not
paid any security deposit, and that the non-certifying party has no claims or
offsets against the requesting party.

                                      24
                                      --
<PAGE>

     20.  SECURITY DEPOSIT.  Tenant shall arrange for the issuance and delivery
          ----------------
to Landlord on the date of this Lease, as security for the performance of all of
its obligations of Tenant hereunder an irrevocable, standby letter of credit
(the "Letter of Credit") from Silicon Valley Bank, Imperial Bank or such other
commercial bank of Tenant's choosing and reasonably acceptable and in form and
content reasonably satisfactory to Landlord, in the amount set forth on the
Schedule. Upon the execution of this Lease, Tenant shall deliver a Letter of
Credit in the amount of $1,000.000. The amount of the Letter of Credit shall be
increased by $1,000,000 on January 1, 1998 and then by $500,000 on the
Commencement Date. If Tenant defaults under this Lease, Landlord may use any
part of the Letter of Credit or Security Deposit to make any defaulted payment,
to pay for Landlord's cure of any defaulted obligation, or to compensate
Landlord for any loss or damage resulting from any default. Landlord agrees to
release the Letter of Credit upon satisfaction of all of the following
conditions: (i) Tenant s Operating Income from continuing operations under GAAP
exceeds $500,000 for four consecutive quarters; (ii) Tenant s cash and
receivables are a minimum of $10,000,000; (iii) a current ratio (defined as
current assets divided by current liabilities) of at least two times; and (iv)
Tenant has delivered a certificate of the President of Tenant representing and
warranting the foregoing and the amount of one month s rent as a Security
Deposit. Landlord may keep the Security Deposit, if cash, in its general funds
and shall not be required to pay interest to Tenant on the deposit amount. If
Tenant shall perform all of its obligations under this Lease and return the
Premises to Landlord at the end of the Term, Landlord shall return all of the
remaining Security Deposit to Tenant within thirty (30) days after the end of
the Term. The Security Deposit shall not serve as an advance payment of Rent or
a measure of Landlord's damages for any default under this Lease.

     If Landlord transfers its interest in the Project or this Lease, Landlord
shall transfer the Security Deposit to its transferee. Upon such transfer,
Landlord shall have no further obligation to return the Security Deposit to
Tenant, and Tenant's right to the return of the Security Deposit shall apply
solely against Landlord's transferee.

     21.  FORCE MAJEURE.  Landlord shall not be in default under this Lease to
          -------------
the extent Landlord is unable to perform any of its obligations on account of
any strike or labor problem, energy shortage, governmental pre-emption or
prescription, national emergency, or any other cause of any kind beyond the
reasonable control of Landlord ("Force Majeure"). This Section 21 shall not
limit Tenant's rights to any abatement of rent expressly allowed in this Lease.

     22.  TENANT'S PERSONAL PROPERTY AND FIXTURES.  Intentionally omitted.
          ---------------------------------------

     23.  NOTICES.  All notices, consents, approvals and similar communications
          -------
to be given by one party to the other under this Lease, shall be given in
writing, mailed or personally delivered as follows:

                                       25
<PAGE>

     A.   Landlord.  To Landlord as follows:
          --------

          CARRAMERICA REALTY CORPORATION
          18640 NE 67th Court, Suite 150
          Redmond, WA  98052
          Attn:  Market Officer
          Fax No. 425-558-2246

          with a copy to:

          CarrAmerica Realty Corporation
          1700 Pennsylvania Avenue, N.W.
          Washington, D.C. 20006
          Attn:  Lease Administration

or to such other person at such other address as Landlord may designate by
notice to Tenant.

     B.   Tenant.  To Tenant as follows:
          ------
          (i) After Commencement Date:

          Metawave Communications Corporation, Inc.
          10525 Willows Road
          Redmond, WA  98073
          Attn:  CFO

          with a copy to:

          Metawave Communications Corporation, Inc.
          10525 Willows Road
          Redmond, WA  98073
          Attn: General Counsel

          (ii) Prior to Commencement Date:

          Metawave Communications Corporation, Inc.
          8700 - 148th Avenue N.E.
          Redmond, WA  98052
          Attn:  CFO
          Fax No. 425-702-5972

          with a copy to:

          Metawave Communications Corporation, Inc.

                                       26
<PAGE>

          8700 - 148th Avenue N.E.
          Redmond, WA  98052
          Attn:  General Counsel
          Fax No. 425-702-5976

or to such other person at such other address as Tenant may designate by notice
to Landlord.

     Notices shall be sent by United States certified or registered mail, by a
reputable national overnight courier service, postage prepaid, hand delivery, or
by facsimile transmission.  Mailed notices shall be deemed to have been given on
the earlier of actual delivery or three (3) business days after posting in the
United States mail in the case of registered or certified mail, and one business
day in the case of overnight courier.

     24.  QUIET POSSESSION.  So long as Tenant shall perform all of its
          ----------------
obligations under this Lease, Tenant shall enjoy peaceful and quiet possession
of the Premises against Landlord or any party claiming through the Landlord.
Interruption of Tenant's peaceful and quiet possession, unless caused by Tenant,
shall title Tenant to an appropriate abatement of rent.

     25.  REAL ESTATE BROKER.  Tenant represents to Landlord that Tenant has not
          ------------------
dealt with any real estate broker with respect to this Lease except for any
broker(s) listed in the Schedule, and no other broker is in any way entitled to
any broker's fee or other payment in connection with this Lease. Tenant shall
indemnify and defend Landlord against any claims by any other broker or third
party for any payment of any kind in connection with this Lease. Landlord shall
pay to CB Commercial Real Estate Group Inc. a real estate leasing commission per
a separate agreement and Tenant shall have no responsibility for such
commission.

     26.  MISCELLANEOUS.
          -------------

     A.   Successors and Assigns.   Subject to the limits on Tenant's assignment
          ----------------------
contained in Section 17, the provisions of this Lease shall be binding upon and
inure to the benefit of all successors and assigns of Landlord and Tenant.

     B.   Date Payments Are Due.  Except for payments to be made by Tenant under
          ---------------------
this Lease which are due upon demand, Tenant shall pay to Landlord any amount
for which Landlord renders a statement of account within ten days of Tenant's
receipt of Landlord's statement.

     C.   Meaning of "Landlord", "Re-Entry, "including" and "Affiliate".  The
          -------------------------------------------------------------
term "Landlord" means only the owner of the Project and the lessor's interest in
this Lease from time to time. The words "re-entry" and "re-enter" are not
restricted to their technical legal meaning. The words "including" and similar
words shall mean "without limitation."

                                       27
<PAGE>

The word "affiliate" shall mean a person or entity controlling, controlled by or
under common control with the applicable entity. "Control" shall mean the power
directly or indirectly, by contract or otherwise, to direct the management and
policies of the applicable entity.

     D.   Time of the Essence.  Time is of the essence of each provision of this
          -------------------
Lease.

     E.   No Option.  This document shall not be effective for any purpose until
          ---------
it has been executed and delivered by both parties; execution and delivery by
one party shall not create any option or other right in the other party.

     F.   Severability.  The unenforceability of any provision of this Lease
          ------------
shall not affect any other provision.

     G.   Governing Law.  This Lease shall be governed in all respects by the
          -------------
laws of the state of Washington, without regard to the principles of conflicts
of laws.

     H.   Lease Modification.  Tenant agrees to modify this Lease in any way
          ------------------
requested by a mortgagee which does not cause increased expense to Tenant or
otherwise materially adversely affect Tenant's interests under this Lease.

     I.   No Oral Modification.  No modification of this Lease shall be
          --------------------
effective unless it is a written modification signed by both parties.

     J.   Landlord's Right to Cure.  If Landlord breaches any of its obligations
          ------------------------
under this Lease, Tenant shall notify Landlord in writing and shall take no
action respecting such breach so long as Landlord immediately begins to cure the
breach and diligently pursues such cure to its completion. Landlord may cure any
default by Tenant; any expenses incurred shall become Additional Rent due from
Tenant on demand by Landlord.

     K.   Captions.  The captions used in this Lease shall have no effect on the
          --------
construction of this Lease.

     L.   Authority.  Landlord and Tenant each represents to the other that it
          ---------
has full power and authority to execute and perform this Lease.

     M.   Landlord's Enforcement of Remedies.  Landlord may enforce any of its
          ----------------------------------
remedies under this Lease either in its own name or through an agent.

     N.   Entire Agreement.  This Lease, together with all Appendices,
          ----------------
constitutes the entire agreement between the parties.  No representations or
agreements of any kind have been made by either party which are not contained in
this Lease.

                                       28
<PAGE>

     O.   Landlord's Title.  Without limiting Tenant s right to peaceful and
          ----------------
quiet possession of the Premises, Landlord's title shall always be paramount to
the interest of the Tenant, and nothing in this Lease shall empower Tenant to do
anything which might in any way impair Landlord's title.

     P.   Light and Air Rights.  Landlord does not grant in this Lease any
          --------------------
rights to light and air in connection with Project. Landlord reserves to itself,
the Land, the Building below the improved floor of each floor of the Premises,
the Building above the ceiling of each floor of the Premises, the exterior of
the Premises and the areas on the same floor outside the Premises, along with
the areas within the Premises required for the installation and repair of
utility lines and other items required to serve other tenants of the Building.

     Q.   Singular and Plural.  Wherever appropriate in this Lease, a singular
          -------------------
term shall be construed to mean the plural where necessary, and a plural term
the singular. For example, if at any time two parties shall constitute Landlord
or Tenant, then the relevant term shall refer to both parties together.

     R.   No Recording by Tenant.  Tenant shall not record in any public records
          ----------------------
any memorandum or any portion of this Lease except as may be required by
applicable securities laws.

     S.   Exclusivity.  Landlord does not grant to Tenant in this Lease any
          -----------
exclusive right except the right to occupy its Premises.

     T.   No Construction Against Drafting Party.  The rule of construction that
          --------------------------------------
ambiguities are resolved against the drafting party shall not apply to this
Lease.

     U.   Survival.  All obligations of Landlord and Tenant under this Lease
          --------
shall survive the termination of this Lease.

     V.   Rent Not Based on Income.  No rent or other payment in respect of the
          ------------------------
Premises shall be based in any way upon net income or profits from the Premises.
Tenant may not enter into or permit any sublease or license or other agreement
in connection with the Premises which provides for a rental or other payment
based on net income or profit.

     W.   Building Manager and Service Providers.  Landlord may perform any of
          --------------------------------------
its obligations under this Lease through its employees or third parties hired by
the Landlord.

     X.   Late Charge and Interest on Late Payments.  Without limiting the
          -----------------------------------------
provisions of Section 12A, if Tenant fails to pay any installment of Rent or
other charge

                                       29
<PAGE>

to be paid by Tenant pursuant to this Lease within five (5) business days after
the same becomes due and payable, then Tenant shall pay a late charge equal to
the greater of three and one-half percent (3-1/2%) of the amount of such payment
or $250. In addition, interest shall be paid by Tenant to Landlord on any late
payments of Rent from the date due until paid at the rate provided in Section
2D(2). Such late charge and interest shall constitute additional Rent due and
payable by Tenant to Landlord upon the date of payment of the delinquent payment
referenced above.

     Y.   Parking.  Landlord will provide an allowance of three (3) cars per
          -------
1,000 rentable square feet of Premises to Tenant on the Premises.

     Z.   Signage.  Tenant shall have exclusive right, subject to Landlord's
          -------
reasonable approval to install Tenant's signage on the exterior of Buildings 1 &
2, provided the signage complies with all ordinances and orders.

     27.  UNRELATED BUSINESS INCOME.  If Landlord is advised by its counsel at
          -------------------------
any time that any part of the payments by Tenant to Landlord under this Lease
may be characterized as unrelated business income under the United States
Internal Revenue Code and its regulations, then Tenant shall enter into any
amendment proposed by Landlord to avoid such income, so long as the amendment
does not require Tenant to make more payments or accept fewer services from
Landlord, than this Lease provides.

     28.  HAZARDOUS SUBSTANCES.  Tenant shall not cause or permit any Hazardous
          --------------------
Substances to be brought upon, produced, stored, used, discharged or disposed of
in or near the Project unless Landlord has consented to such storage or use in
its sole discretion. "Hazardous Substances" include those hazardous substances
                      --------------------
described in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the Resource
Conservation and Recovery Act, as amended, 42 U.S.C. Section 6901 et seq., any
other applicable federal, state or local law, and the regulations adopted under
these laws. If any lender or governmental agency shall require testing for
Hazardous Substances in the Premises, Tenant shall pay for such testing.

     29.  EXCULPATION.  Without limiting Tenant's rights to abatement of rent as
          -----------
expressly allowed in this Lease, Landlord shall have no personal liability under
this Lease; its liability shall be limited to its interest in the Project, and
shall not extend to any other property or assets of the Landlord. In no event
shall any officer, director, employee, agent, shareholder, partner, member or
beneficiary of Landlord be personally liable for any of Landlord's obligations
hereunder.

     IN WITNESS WHEREOF, the parties hereto have executed this Lease.

                    LANDLORD:

                                      30
                                      --
<PAGE>

                         CARRAMERICA REALTY CORPORATION
                         a Maryland corporation

                         By:  /s/ Philip L. Hawkins
                         --------------------------------------
                         Print Name:  Philip L. Hawkins
                         --------------------------------------
                         Print Title:  Managing Director
                         --------------------------------------

                         TENANT:

                         METAWAVE COMMUNICATIONS
                         CORPORATION, INC.
                         a Delaware corporation

                         By: /s/ Vito Palermo
                         ---------------------------------------
                         Print Name:  Vito Palermo
                         ---------------------------------------
                         Print Title:  Chief Financial Officer
                         ---------------------------------------

DISTRICT OF COLUMBIA     )
                         ) ss.
                         )

     On this _______ day of __________, 1997, before me, the undersigned, a
Notary Public in and for the District of Columbia, duly commissioned and sworn
as such, personally appeared _________________, to me known to be the
___________________ of __________________________, the corporation that executed
the within and foregoing instrument, and acknowledged the said instrument to be
the free and voluntary act and deed of said corporation for the uses and
purposes therein mentioned, and on oath stated that he was authorized to execute
said instrument, and that the seal affixed is the corporate seal of said
corporation.

     WITNESS my hand and official seal the day and year in this certificate
first above written.

                         Printed Name:  ______________________
                     NOTARY PUBLIC in and for the District of Columbia,
                         residing at ________________
                         My commission expires: _______________

STATE OF DELAWARE   )

                                       31
<PAGE>

                    ) ss.
COUNTY OF KING      )

     On this _______ day of _________________, 1997, before me, the undersigned,
a Notary Public in and for the State of Delaware, duly commissioned and sworn as
such, personally appeared __________________________________, to me known to be
the _______________ of _________________________, the corporation that executed
the within and foregoing instrument, and acknowledged the said instrument to be
the free and voluntary act and deed of said corporation for the uses and
purposes therein mentioned, and on oath stated that he/she was authorized to
execute said instrument, and that the seal affixed is the corporate seal of said
corporation.

     WITNESS my hand and official seal the day and year in this certificate
first above written.

                         Printed Name:  ______________________
                     NOTARY PUBLIC in and for the State of Delaware,
                         residing at ________________
                         My commission expires: _______________

                                       32
<PAGE>

                                  APPENDIX A

                             PLAN OF THE PREMISES

                  (attach floor plan depicting the Premises)

                                  APPENDIX A
                                  Page 1 of 1
<PAGE>

                                  APPENDIX B

                             RULES AND REGULATIONS

     1.   Tenant shall not place anything, or allow anything to be placed near
the glass of any window, door, partition or wall which may, in Landlord's
judgment, appear unsightly from outside of the Project.

     2.   The Project directory shall be available to Tenant solely to display
names and their location in the Project, which display shall be as directed by
Landlord.

     3.   The sidewalks, halls, passages, exits, entrances, elevators and
stairways shall not be obstructed by Tenant or used by Tenant for any purposes
other than for ingress to and egress from the Premises.  Tenant shall lend its
full cooperation to keep such areas free from all obstruction and in a clean and
sightly condition and shall move all supplies, furniture and equipment as soon
as received directly to the Premises and move all such items and waste being
taken from the Premises (other than waste customarily removed by employees of
the Building) directly to the shipping platform at or about the time arranged
for removal therefrom.  The halls, passages, exits, entrances, elevators,
stairways, balconies and roof are not for the use of the general public and
Landlord shall, in all cases, retain the right to control and prevent access
thereto by all persons whose presence in the judgment of Landlord, reasonably
exercised, shall be prejudicial to the safety, character, reputation and
interests of the Project.  Except as allowed in the Lease, neither Tenant nor
any employee or invitee of Tenant shall go upon the roof of the Project.

     4.   The toilet rooms, urinals, wash bowls, showers and other apparatuses
shall not be used for any purposes other than that for which they were
constructed, and no foreign substance of any kind whatsoever shall be thrown
therein, and to the extent caused by Tenant or its employees or invitees, the
expense of any breakage, stoppage or damage resulting from the violation of this
rule shall be borne by Tenant.

     5.   Tenant shall not cause any unnecessary janitorial labor or services by
reason of Tenant's carelessness or indifference in the preservation of good
order and cleanliness.

     6.   Tenant shall not install or operate any refrigerating, heating or air
conditioning apparatus, or carry on any mechanical business without the prior
written consent of Landlord; use the Premises for housing, lodging or sleeping
purposes (other than wellness rooms used by sick employees); or permit
preparation or warming of food in the Premises (warming of coffee and individual
or group meals with employees and guests excepted).  Tenant shall not occupy or
use the Premises or permit the Premises to

                                  APPENDIX B
                                  Page 1 of 5
<PAGE>

be occupied or used for any purpose, act or thing which is in violation of any
Governmental Requirement or which may be dangerous to persons or property.

     7.   Tenant shall not bring upon, use or keep in the Premises or the
Project any kerosene, gasoline or inflammable or combustible fluid or material,
or any other articles deemed hazardous to persons or property (other than
propane tanks used for vehicles such as forklifts), or use any method of heating
or air conditioning other than that supplied by Landlord.

     8.   Landlord shall have sole power to direct electricians as to where and
how telephone and other wires are to be introduced.  No boring or cutting for
wires is to be allowed without the consent of Landlord.  The location of
telephones, call boxes and other office equipment affixed to the Premises shall
be subject to the approval of Landlord.

     9.   No additional locks shall be placed upon any doors, windows or
transoms in or to the Premises and Tenant shall not change existing locks or the
mechanism thereof without prior notification to Landlord.  During the Term and
upon termination of the lease, Tenant shall deliver to Landlord all keys and
passes for offices, rooms, parking lot and toilet rooms which shall have been
furnished Tenant.

          In the event of the loss of keys so furnished, Tenant shall pay
Landlord therefor.  Tenant shall not make, or cause to be made, any such keys
and shall order all such keys solely from Landlord and shall pay Landlord for
any keys in addition to the two sets of keys originally furnished by Landlord
for each lock.

     10.  Tenant shall not install linoleum, tile, carpet or other floor
covering so that the same shall be affixed to the floor of the Premises in any
manner except as approved by Landlord.

     11.  Tenant shall not take or permit to be taken in or out of other
entrances of the Building, or take or permit on other elevators, any item
normally taken in or out through the trucking concourse or service doors or in
or on freight elevators.

     12.  Tenant shall cause all doors to the Premises to be closed and securely
locked before leaving the Project at the end of the day.

     13.  Without the prior written consent of Landlord, Tenant shall not use
the name of the Project or any picture of the Project in connection with, or in
promoting or advertising the business of, Tenant, except Tenant may use the
address of the Project as the address of its business.

     14.  Tenant shall cooperate fully with Landlord to assure the most
effective operation of the Premises' or the Project's heating and air
conditioning, and shall refrain

                                  APPENDIX B
                                  ----------
                                  Page 1 of 5
                                  -----------
<PAGE>

from attempting to adjust any controls, other than room thermostats installed
for Tenant's use. Tenant shall keep corridor doors closed.

     15.  Tenant assumes full responsibility for protecting the Premises from
theft, robbery and pilferage, which may arise from a cause other than Landlord's
negligence, which includes keeping doors locked and other means of entry to the
Premises closed and secured.

     16.  Peddlers, solicitors and beggars shall be reported to the office of
the Project or as Landlord otherwise requests.

     17.  Tenant shall not advertise the business, profession or activities of
Tenant conducted in the Project in any manner which violates the letter or
spirit of any code of ethics adopted by any recognized association or
organization pertaining to such business, profession or activities.

     18.  No motorized vehicle (other than freight handling equipment) and no
animals or pets shall be allowed in the Premises, halls, freight docks, or any
other parts of the Building except that blind persons may be accompanied by
"seeing eye" dogs.  Tenant shall not make or permit any noise, vibration or odor
to emanate from the Premises, or do anything therein tending to create, or
maintain, a nuisance, or do any act tending to injure the reputation of the
Building.

     19.  Tenant acknowledges that Building security problems may occur which
may require the employment of extreme security measures in the day-to-day
operation of the Project.

     Accordingly:

          (a)  Landlord may, at any time, or from time to time, or for regularly
scheduled time periods, as deemed advisable by Landlord and/or its agents, in
their sole discretion, require that persons entering or leaving the Project or
the Property identify themselves to watchmen or other employees designated by
Landlord, by registration, identification or otherwise.

          (b)  Tenant agrees that it and its employees will cooperate fully with
Project employees in the implementation of any and all security procedures.

          (c)  Such security measures shall be the sole responsibility of
Landlord, and Tenant shall have no liability for any action taken by Landlord in
connection therewith, it being understood that Landlord is not required to
provide any security procedures and shall have no liability for such security
procedures or the lack thereof.

     20.  Tenant shall not do or permit the manufacture, sale or purchase of any
fermented, intoxicating or alcoholic beverages without obtaining written consent
of Landlord.

     21.  Tenant shall not disturb the quiet enjoyment of any other tenant.
<PAGE>

     22.  Landlord may retain a pass key to the Premises and be allowed
admittance thereto at all times to enable its representatives to examine the
Premises from time to time and to exhibit the same in accordance with Section
11(H) of the Lease and Landlord may place and keep on the windows and doors of
the Premises at any time signs advertising the Premises for Rent.

     23.  No equipment, mechanical ventilators, awnings, special shades or other
forms of window covering shall be permitted either inside or outside the windows
of the Premises without the prior written consent of Landlord, and then only at
the expense and risk of Tenant, and they shall be of such shape, color,
material, quality, design and make as may be approved by Landlord.

     24.  Tenant shall not during the term of this Lease canvas or solicit other
tenants of the Building for any purpose except as expressly allowed in the Lease
or these regulations.

     25.  Except as allowed in the Lease or related to Tenant's use of the
Premises, Tenant shall not install or operate any phonograph, musical or sound-
producing instrument or device, radio receiver or transmitter, TV receiver or
transmitter, or similar device in the Building which would interfere with any
tenant in the Project, nor install or operate any antenna, aerial, wires or
other equipment inside or outside the Building, nor operate any electrical
device from which may emanate electrical waves which may interfere with or
impair radio or television broadcasting or reception from or in the Building or
elsewhere, without in each instance the prior written approval of Landlord.  The
use thereof, if permitted, shall be subject to control by Landlord to the end
that others shall not be disturbed.

     26.  Tenant shall promptly remove all rubbish and waste from the Premises.

     27.  Tenant shall not exhibit, sell or offer for sale, Rent or exchange in
the Premises or at the Project any article, thing or service, except those
ordinarily embraced within the use of the Premises specified in Section 6 of
this Lease, without the prior written consent of Landlord.

     28.  Tenant shall not overload any floors in the Premises or any public
corridors or elevators in the Building.

     29.  Whenever Landlord's consent, approval or satisfaction is required
under these Rules, then unless otherwise stated, any such consent, approval or
satisfaction must be obtained in advance, such consent or approval may be
granted or withheld in Landlord's sole discretion, and Landlord's satisfaction
shall be determined in its sole judgment provided, however, Landlord shall
respond to any such request within ten (10) days.
<PAGE>

     30.  Tenant and its employees shall cooperate in all fire drills conducted
by Landlord in the Building.

     31.  In the event of a conflict between these Rules and Regulations and the
provisions of the Lease, the provisions of the Lease shall prevail.
<PAGE>

                                  APPENDIX C

                         TENANT IMPROVEMENT AGREEMENT

     1.   INITIAL IMPROVEMENTS.  Landlord shall cause to be performed the
improvements (the "Initial Improvements") in the Premises provided for in the
                   --------------------
plans and specifications prepared by _________________________ dated
_______________ and agreed to by Landlord and Tenant (the "Plans").  The Initial
                                                           -----
Improvements shall be performed by _________________________ (the "Contractor"),
                                                                   ----------
using Building standard materials.  Landlord shall use commercially reasonable
efforts to cause the Work to be substantially completed on or before the
Commencement Date specified in the Schedule to the Lease, subject to Tenant
Delay (as defined in Section 4 hereof) and any Force Majeure.  Notwithstanding
the foregoing, Landlord shall be required to deliver only 73,000 square feet of
the Premises on the Commencement Date.  The remaining 23,000 square feet shall
be delivered within 180 days of Tenant s written notice of its intent to occupy
the remaining space; provided, however, that rent shall commence no later than
January 1, 1999 regardless of the date Tenant occupies such space.  Landlord may
charge a supervisory fee not to exceed three percent (3%) of labor, material and
all other costs of the Initial Improvements and the Additional Improvements.

     2.   ADDITIONAL IMPROVEMENTS.  If Tenant shall require improvements
("Additional Improvements") to the Premises in addition, revision of, or
  -----------------------
substitution for the Initial Improvements, Tenant shall deliver to Landlord for
its approval plans and specifications for such Additional Improvements.  If
Landlord does not approve of the plans for Additional Improvements, Landlord
shall advise Tenant of the revisions required. Tenant shall revise and redeliver
the plans and specifications to Landlord within five (5) business days of
Landlord's advice or Tenant shall be deemed to have abandoned its request for
such Additional Improvements.  Tenant shall pay for all such preparations and
revisions of plans and specifications, and the construction of all Additional
Improvements, subject to Landlord s Contribution.

     3.   LANDLORD'S CONTRIBUTION.  Landlord shall contribute an amount of
Twenty Dollars ($20.00) per square foot ("Landlord's Contribution") toward the
                                          -----------------------
costs incurred by Landlord for the Initial Improvements or Additional
Improvements or other items Tenant is responsible for hereunder that constitute
a physical improvement to the Premises such as cabling and security.  Landlord
has no obligation to pay for costs of the Initial Improvements in excess of
Landlord's Contribution.  If the cost of the Initial Improvements exceeds the
Landlord's Contribution, Tenant shall pay such overage to Landlord upon
completion of construction of the Initial Improvements.  Tenant shall also pay
to Landlord prior to commencement of construction, the cost of all Additional
Improvements above the Landlord's Contribution.

     4.   COMMENCEMENT DATE DELAY.  Commencement Date shall be

                                  APPENDIX C
                                  Page 1 of 4
<PAGE>

delayed until the Initial Improvements have been substantially completed (the
"Completion Date"), except to the extent that the delay shall be caused by any
 ---------------
one or more of the following (a "Tenant Delay"):
                                 ------------

          (a)  Tenant's request for Additional Improvements whether or not any
such Additional Improvements are actually performed; or

          (b)  Contractor's performance of any Additional Improvements; or

          (c)  Tenant's request for materials, finishes or installations
requiring unusually long lead times; or

          (d)  Tenant's delay in reviewing, revising or approving plans and
specifications beyond the periods set forth herein; or

          (e)  Any other act or omission by Tenant, its agents, contractors or
persons employed by any of such persons.

     If the Commencement Date is delayed for any reason, then Landlord shall
cause Landlord's Architect to certify the date on which the Initial Improvements
would have been completed but for such Tenant Delay, or were in fact completed
without any Tenant Delay.

     5.   ACCESS BY TENANT PRIOR TO COMMENCEMENT OF TERM.  Landlord shall permit
Tenant and its agents to enter the Premises thirty (30) days prior to the
Commencement Date to prepare the Premises for Tenant's use and occupancy.   Any
such permission shall constitute a license only, conditioned upon Tenant's:

     (a)  working in harmony with Landlord and Landlord's agents, contractors,
workmen, mechanics and suppliers and with other tenants and occupants of the
Building;

     (b)  obtaining in advance Landlord's approval of the contractors proposed
to be used by Tenant and depositing with Landlord in advance of any work (i)
security satisfactory to Landlord for the completion thereof, and (ii) the
general contractor's affidavit for the proposed work and the waivers of lien
from the general contractor and all subcontractors and suppliers of material;
and

     (c)  furnishing Landlord with such insurance as Landlord may require
against liabilities which may arise out of such entry.

     Landlord shall not be liable in any way for any injury, loss or damage
which may occur to any of Tenant's property or installations in the Premises
prior to the Commencement Date.  Tenant shall protect, defend, indemnify and
save harmless

                                  APPENDIX C
                                  Page 2 of 4
<PAGE>

Landlord from all liabilities, costs, damages, fees and expenses arising out of
the activities of Tenant or its agents, contractors, suppliers or workmen in the
Premises or the Building. Any entry and occupation permitted under this Section
shall be governed by Section 5 and all other terms of the Lease.

     6.   MISCELLANEOUS.

     (a)  Landlord s Work.  In addition to the Initial Improvements, Landlord
shall construct Building 1 and Building 2 in accordance with Plans and
Specifications dated ____________ ("Landlord s Work").  Landlord shall use its
best efforts to substantially complete the Landlord s Work on or before the
Commencement Date, subject to force majeure and actions or omissions of Tenant
causing delay.  The Improvements to be constructed by Landlord shall include as
part of the Building Shell (and shall not be included in the Initial
Improvements) the following:

     Landlord shall provide as part of the Building Shell:

     Building HVAC system per the building specifications dated 7-1-97 and the
     McKinstry Drawings dated 6-30-97

     Finished Building Restroom and Core per the building specifications dated
     7-1-97 and the G2 Architectural Drawings dated 6-30-97.  Landlord to
     provide one set of showers per building as a component of the shell.

     Elevator per G2 Architectural Drawings dated 6-30-97 and building
     specifications dated 7-1-97.

     One on grade loading door per building per the G2 Architectural Drawings
     dated 6-30-97.

     Landlord to provide one dock height loading area at Building One per
     mutually developed and approved drawings.

     Insulated perimeter walls.

     Blinds installed on the exterior windows.

     Ceiling tiles, grid and lights for the entire Premises of the types
     identified in the building specifications dated ______________.  In the
     event that the plans and specifications for the Initial Improvements are
     such that fewer ceiling tiles, less grid or fewer lights are required than
     if the entire Premises were improved for initial use as office space,
     Tenant shall receive a credit equal to Landlord's resulting cost savings,
     which shall be applied against any part of the Initial

                                  APPENDIX C
                                  Page 3 of 4
<PAGE>

     Improvements, Additional Improvements or other items that become a physical
     part of the Building (such as security systems, rooftop work and
     telecommunications improvements) for which Tenant would otherwise be
     responsible to pay.

     Landlord to provide a comprehensive signage program for Willow Creek
     Corporate Center.  The park signage package will include park entry and
     park directional signage, building directory signage and building
     informational signage.

     (b) Landlord shall construct a skybridge between Building 1 and Building 2,
in accordance with plans and specifications prepared by Landlord, subject to
Tenant s approval of such plans and specifications.  The construction of the
skybridge shall be undertaken, if possible, in conjunction with Landlord s work
and the Initial Improvements.  Costs of the skybridge shall be advanced by
Landlord and repaid by Tenant in accordance with the terms of the Lease.  Tenant
shall not be required to remove the Skybridge at the termination of the Lease.

     (c) Substantial Completion as used in this Lease and Appendix shall mean
completion of work so that (i) Tenant can use the Premises and Building for
intended use without material interference to Tenant, (ii) the only incomplete
items are minor or insubstantial details of construction and "punch list" items,
and (iii) Landlord has obtained a temporary or permanent certificate of
occupancy from the appropriate governmental agency.

     (d) Landlord shall provide Tenant with two (2) preliminary Space Planning
meetings and two (2) Space Plans at its sole cost and expense, exclusive of the
Tenant Allowance.

     (e) Landlord shall cooperate with Tenant to assist Tenant in its efforts to
allow Tenant the benefits of the R&D Tax Deferral available from the State of
Washington, provided that Landlord shall not be required to undertake any act or
take any position that in Landlord s reasonable judgment would expose Landlord
to any liability, cost or expense.

     Terms used in this Appendix C shall have the meanings assigned to them in
the Lease.  The terms of this Appendix C are subject to the terms of the Lease.

                                   APPENDIX C
                                  Page 4 of 4
<PAGE>

                                  APPENDIX D

                   MORTGAGES CURRENTLY AFFECTING THE PROJECT

                                  APPENDIX D
                                    Page 1
<PAGE>

                                   APPENDIX E

                        COMMENCEMENT DATE CONFIRMATION

Landlord:      CARRAMERICA REALTY  CORPORATION, a Maryland corporation

Tenant:        ____________________, a _____________

     This Commencement Date Confirmation is made by Landlord and Tenant pursuant
to that certain Lease dated as of _________, 199__ (the "Lease") for certain
premises known as Suite ____ in the building commonly known as WILLOW CREEK
CORPORATE CENTER (the "Premises").  This Confirmation is made pursuant to Item 9
of the Schedule to the Lease.

     1.   Lease Commencement Date, Termination Date.  Landlord and Tenant hereby
          -----------------------------------------
agree that the Commencement Date of the Lease is _____________, 199__, and the
Termination Date of the Lease is _______________, _____.

     2.   Acceptance of Premises.  Subject to the terms of the Lease, Tenant has
          ----------------------
inspected the Premises and affirms that the Premises is acceptable in all
respects in its current "as is" condition.

     3.   Incorporation.  This Confirmation is incorporated into the Lease, and
          -------------
forms an integral part thereof.  This Confirmation shall be construed and
interpreted in accordance with the terms of the Lease for all purposes.

                                    TENANT:

                                                                   ,
                                    a

                                    Name:_________________________________
                                    Title:________________________________

                                    LANDLORD:
                                    CARRAMERICA REALTY CORPORATION,
                                    a Maryland corporation

                                    By:__________________________________
                                    Name:________________________________
                                    Title:_______________________________

                                   APPENDIX E
                                    Page 1
<PAGE>

                                 APPENDIX F

                               LEGAL DESCRIPTION

PARCEL A:

THE SOUTH 10 ACRES OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION
34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON.

PARCEL B:

BEGINNING AT THE SOUTHEAST CORNER OF THE NORTH THREE-FOURTHS OF THE SOUTHEAST
QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 34, TOWNSHIP 26 NORTH, RANGE 5
EAST, W.M., IN KING COUNTY, WASHINGTON;
THENCE NORTH 88 29 27" WEST ALONG THE SOUTH LINE THEREOF 333.48 FEET;
THENCE NORTH 1 30 33" EAST 700.00 FEET;
THENCE SOUTH 88 29 27" EAST 703.19 FEET TO THE WESTERLY MARGIN OF THE C.D.
STIMSON ROAD (NOW KNOWN AS WILLOWS ROAD); THENCE SOUTH 6 20 48" EAST ALONG SAID
WESTERLY MARGIN 708.26 FEET TO THE SOUTH LINE OF THE NORTH THREE-FOURTHS OF THE
SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 34;
THENCE NORTH 88 17 35" WEST ALONG SAID SOUTH LINE 466.52 FEET TO THE POINT OF
BEGINNING;
EXCEPT THAT PORTION, IF ANY, LYING WITHIN WILLOWS ROAD AS CONVEYED TO THE CITY
OF REDMOND BY DEED RECORDED UNDER RECORDING NO. 8002070845;

(BEING KNOWN AS PARCEL 2 OF CITY OF REDMOND LOT LINE ADJUSTMENT NO. SS-83-29
RECORDED UNDER RECORDING NO. 8310270925).

PARCEL C:

THAT PORTION OF THE SOUTH HALF OF THE SOUTH HALF OF THE SOUTHWEST QUARTER OF THE
NORTHEAST QUARTER OF SECTION 34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING
COUNTY, WASHINGTON, LYING WESTERLY OF RIGHT-OF-WAY OF NORTHERN PACIFIC RAILWAY
COMPANY;
EXCEPT ANY PORTION LYING WITHIN THE WILLOWS ROAD.

                                  APPENDIX F
                                  Page 1 of 3
<PAGE>

PARCEL D:

THE NORTH 100 FEET OF THAT PORTION OF THE NORTHWEST QUARTER OF THE SOUTHEAST
QUARTER OF SECTION 34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY,
WASHINGTON, LYING WESTERLY OF THE RIGHT-OF-WAY OF THE NORTHERN PACIFIC RAILWAY
COMPANY;

EXCEPT THAT PORTION THEREOF CONVEYED TO KING COUNTY FOR ROAD BY DEED RECORDED
UNDER RECORDING NO. 956171.

PARCEL E:

LOTS 1, 2 AND 3 OF CITY OF REDMOND SHORT PLAT NO. SS-79-37 RECORDED UNDER
RECORDING NO. 8010230411;

PARCEL F:

THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 34,
TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON;
EXCEPT THE SOUTH 400 FEET OF THE NORTH 430 FEET OF THE EAST 228 FEET THEREOF.

PARCEL G:

THE SOUTH 400 FEET OF THE NORTH 430 FEET OF THE EAST 228 FEET OF THE FOLLOWING
DESCRIBED PROPERTY:

THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 34,
TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON.

PARCEL H:

THE NORTH HALF OF THE SOUTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY,
WASHINGTON.

                                  APPENDIX F
                                  Page 2 of 3
<PAGE>

PARCEL I:

THE EAST ONE-HALF OF THE FOLLOWING DESCRIBED TRACT:

THE SOUTH 10 ACRES OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION
34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., IN KING COUNTY, WASHINGTON, ACCORDING
TO SURVEY THEREOF AS SHOWN BY THE SUBDIVISIONAL PLAT APPROVED BY DECREE OF THE
SUPERIOR COURT OF KING COUNTY IN CAUSE NO. 106237.

PARCEL I-1:

AN EASEMENT FOR SANITARY SEWER AND UNDERGROUND UTILITIES OVER AND ACROSS THE
NORTH 25 FEET OF THE FOLLOWING DESCRIBED PROPERTY:

BEGINNING AT THE NORTHWEST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST
QUARTER OF SECTION 34, TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M.;
THENCE SOUTH 370 FEET ALONG THE WESTERLY BOUNDARY OF SAID SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER;
THENCE EAST PARALLEL TO THE NORTH BOUNDARY LINE OF SAID SOUTHWEST QUARTER OF THE
SOUTHEAST QUARTER TO THE COUNTY ROAD AS NOW LAID OUT AND ESTABLISHED;
THENCE NORTHWEST ALONG SAID COUNTY ROAD TO THE NORTH BOUNDARY LINE OF SAID
SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER;
THENCE WEST ALONG SAID NORTH BOUNDARY LINE OF SAID SOUTHWEST QUARTER OF THE
SOUTHEAST QUARTER TO THE POINT OF BEGINNING;

TOGETHER WITH THE NORTH 70.42 FEET OF THE SOUTH 295 FEET OF THE NORTH 665 FEET
OF THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 34,
TOWNSHIP 26 NORTH, RANGE 5 EAST, W.M., LYING WESTERLY OF COUNTY ROAD (ALSO KNOWN
AS WILLOWS ROAD) IN KING COUNTY, WASHINGTON.

ALL SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON.

                                  APPENDIX F
                                  Page 3 of 3
<PAGE>

                                   APPENDIX G
                                EXTENSION OPTION

     EXTENSION OPTION.  Subject to Subsection B below, Tenant may at its option
     ----------------
extend the Term of this Lease for TWO (2) successive periods of FIVE (5) YEARS
each.  Each such period is called a "Renewal Term", and the first such FIVE (5)
                                     ------------
YEAR period is called the "First Renewal Term" and the second such five (5) year
                           ------------------
period is called the "Second Renewal Term".  Each Renewal Term shall be upon the
                      -------------------
same terms contained in this Lease except for the payment of Base Rent during
the Renewal Term; and any reference in the Lease to the "Term" of the Lease
shall be deemed to include any Renewal Term and apply thereto, unless it is
expressly provided otherwise.  Tenant shall have no additional extension
options.

     A.   The Base Rent during a Renewal Term shall be the greater of (i) the
Base Rent applicable to the last day of the final Lease Year prior to the
applicable Renewal Term, or (ii) 100% of the Market Rate (defined hereinafter)
for such space for a term commencing on the first day of the Renewal Term.
"Market Rate" shall mean the then prevailing market rate for a five (5) year
 -----------
term commencing on the first day of the Renewal Term for tenants of comparable
size and creditworthiness for comparable buildings in the general vicinity of
the Project.  Determination of the Market Rate shall include, without
limitation, then current applicable market conditions such as rent abatements,
tenant allowances, cash incentives, broker commissions, Tenant's use,
availability of space in the Redmond area, the build out of the Premises and
such additional factors as might reasonably be considered in determining the
Market Rate.

     B.   To exercise any option, Tenant must deliver a binding notice to
Landlord not less than twelve (12) months prior to the expiration of the initial
Term of this Lease, or the first Renewal Term, as the case may be. Thereafter,
the Market Rate for the particular Renewal Term shall be calculated pursuant to
Subsection C below and Landlord shall inform Tenant of the Market Rate.  Such
calculations shall be final and shall not be recalculated at the actual
commencement of such Renewal Term.  If Tenant fails to timely give its notice of
exercise, Tenant will be deemed to have waived its option to extend.

     C.   Market Rate shall be determined as follows:

          (i) If Tenant provides Landlord with its binding notice of exercise
     pursuant to Subsection B above, then at some point between thirteen (13)
     and eleven (11) months prior to the commencement of the applicable Renewal
     Term (or, at Landlord s election, at an earlier point), Landlord shall
     calculate and inform Tenant of the Market Rate.  At the same time Landlord
     shall provide to Tenant in writing supporting information used by Landlord
     to calculate the Market Rate including rental rates and lease terms on
     comparable buildings, which Landlord

                                  APPENDIX G
                                  Page 1 of 2
<PAGE>

     shall identify by name and location. If Tenant rejects the Market Rate as
     calculated by Landlord, Tenant shall inform Landlord of its rejection
     within twenty (20) days after Tenant s receipt of Landlord s calculation,
     and Landlord and Tenant shall commence negotiations to agree upon the
     Market Rate. If Tenant fails to timely reject Landlord s calculation of the
     Market Rate it will be deemed to have accepted such calculation. If
     Landlord and Tenant are unable to reach agreement within twenty-one (21)
     days after Landlord s receipt of Tenant s notice of rejection, then the
     Market Rate shall be determined in accordance with (ii) below.

          (ii)  If Landlord and Tenant are unable to reach agreement on the
     Market Rate within said twenty-one (21) day period, then within seven (7)
     days, Landlord and Tenant shall each simultaneously submit to the other in
     a sealed envelope its good faith estimate of the Market Rate.  If the
     higher of such estimates is not more than one hundred five percent (105%)
     of the lower, then the Market Rate shall be the average of the two.
     Otherwise, the dispute shall be resolved by arbitration in accordance with
     (iii) below.

          (iii) Within seven (7) days after the exchange of estimates, the
     parties shall select as an arbitrator an independent MAI appraiser with at
     least five (5) years of experience in appraising office space in the
     metropolitan area in which the Project is located (a "Qualified
     Appraiser").  If the parties cannot agree on a Qualified Appraiser, then
     within a second period of seven (7) days, each shall select a Qualified
     Appraiser and within ten (10) days thereafter the two appointed Qualified
     Appraisers shall select a third Qualified Appraiser and the third Qualified
     Appraiser shall be the sole arbitrator.  If one party shall fail to select
     a Qualified Appraiser within the second seven (7) day period, then the
     Qualified Appraiser chosen by the other party shall be the sole arbitrator.

          (iv)  Within twenty-one (21) days after submission of the matter to
     the arbitrator, the arbitrator shall determine the Market Rate by choosing
     whichever of the estimates submitted by Landlord and Tenant the arbitrator
     judges to be more accurate. The arbitrator shall notify Landlord and Tenant
     of its decision, which shall be final and binding. If the arbitrator
     believes that expert advice would materially assist him, the arbitrator may
     retain one or more qualified persons to provide expert advice. The fees of
     the arbitrator and the expenses of the arbitration proceeding, including
     the fees of any expert witnesses retained by the arbitrator, shall be paid
     by the party whose estimate is not selected. Each party shall pay the fees
     of its respective counsel and the fees of any witness called by that party.

     D.   Tenant's option to extend this Lease is subject to the conditions
that:  (i) on the date that Tenant delivers its binding notice exercising an
option to extend, Tenant is

                                  APPENDIX G
                                  Page 2 of 2
<PAGE>

not in default under this Lease after the expiration of any applicable notice
and cure periods.

                                   APPENDIX G
<PAGE>

                                  APPENDIX H
                     EXPANSION OPTION AND LETTER OF CREDIT

     1.   EXPANSION OPTION.  Subject to the terms and conditions of this
          ----------------
paragraph, Landlord hereby grants to Tenant an option (the "Option") to lease
Building 6 located in the Project as shown on Exhibit A attached hereto (the
"Expansion Space").  To exercise the Option, Tenant must deliver a binding
written notice to Landlord of its intent to lease the Expansion Space on or
before May 1, 1999.  In the notice of intent to lease, Tenant shall specify the
date on which the Landlord shall deliver the Expansion Space to Tenant, which
date (i) shall not be less than nine (9) months from the date of the notice, and
(ii) shall be no later than February 1, 2000 .  Tenant hereby acknowledges that
time is of the essence with respect to delivery of the notice and that failure
to deliver such written notice to Landlord within the time required shall result
in the termination of Tenant s Option to lease the Expansion Space.  Upon proper
exercise of Tenant s Option, Landlord shall deliver to Tenant the Expansion
Space on the specific delivery date, unless otherwise mutually agreed by
Landlord and Tenant.  Tenant s notice of its election to exercise its Option for
the Expansion Space shall be subject to the following conditions:  (a) the Lease
shall be in full force and effect at the time of the exercise of such Option;
and (b) Tenant shall not be in default (subject to any notice and cure periods)
under the Lease.

     Tenant s lease of the Expansion Space shall be on the same terms and
conditions of this Lease of the Premises, including, without limitation, at the
rental rates paid at the time of such election for the Premises and, except for
Extension Options without further extension of the term of the Lease (it being
the intent of the parties that the lease of the Expansion Space shall be co-
terminus with the lease of the Premises).  Landlord and Tenant hereby agree to
execute an Amendment to Lease evidencing the lease of the Expansion Space in
form consistent with the terms hereof and satisfactory to the parties.  Landlord
shall deliver to Tenant the Expansion Space in a similar condition and terms as
the Premises were delivered to Tenant, including, Landlord s work and the Tenant
improvement allowance set forth in the Lease for the initial Premises.

     2.   LETTER OF CREDIT.  Section 12 of the Lease is hereby supplemented and
          ----------------
modified by adding the following language as Section 12E:

                                  APPENDIX H
                                  Page 1 of 2
<PAGE>

     E.   Default Relating to Letter of Credit.  In the event that thirty (30)
          ------------------------------------
days prior to the expiry date set forth in the Letter of Credit or replacement
Letter of Credit required to be provided by Tenant pursuant to Article 20 hereof
and which is in effect at such time, Tenant fails to (1) obtain an extension of
such Letter of Credit or (2) provide a new Letter of Credit, as security for the
performance of all of its obligations hereunder in form and substance
satisfactory to Landlord, Landlord may, at its sole and exclusive remedy for
such default, present drafts for payment of the entire amount of the Letter of
Credit and such amounts shall be held by Landlord as a Security Deposit pursuant
to the terms of Article 20 hereof.

                                  APPENDIX H
                                  Page 2 of 2<PAGE>

                                                                    EXHIBIT 10.9

                      METAWAVE COMMUNICATIONS CORPORATION
                              PURCHASE AGREEMENT

THIS PURCHASE AGREEMENT (this "Agreement") is made as of this 4th day of March,
1998 (the "Effective Date") between Metawave Communications Corporation, a
Delaware  corporation ("Seller"), and ALLTEL Supply Inc., a Delaware corporation
("Customer").

The parties, in consideration of the mutual covenants, agreements and promises
of the other set forth in this Agreement and intending to be legally bound,
agree as follows:

1. AGREEMENT

Seller agrees to sell to Customer, and Customer agrees to purchase from time to
time by submitting a Purchase Order to Seller, the Products and Services
identified on Exhibit A to this Agreement in accordance with the specifications
and the terms and conditions hereof and at the Purchase Prices set forth in
Exhibit A.  Notwithstanding any other provision of this Agreement or any other
contract between the parties to the contrary, the provisions of this Agreement
shall apply to all Purchase Orders for the Products and Services during the term
of this Agreement unless the parties expressly agree by written modification to
this Agreement that the provisions of this Agreement shall not apply.  Any
additional or different terms in any acknowledgment, confirmation, invoice,
Purchase Order or other communication from one party to the other shall be
deemed objected to without need of further notice of objection and shall be of
no effect and not in any circumstance binding upon either party unless expressly
accepted by both parties in writing.

2. DEFINITIONS

As used in this Agreement, the following terms shall have the meanings set forth
below:

"Acceptance Test Procedure" or "ATP" shall mean the testing procedures and
protocols described and administered for each Product as set forth in Exhibit C
and Exhibit E.

"Affiliate" shall mean any partnership, corporation or other entity (i) in which
Customer, directly or indirectly, owns more than fifty percent (50%) of the
voting shares, or (ii) which owns more than fifty percent (50%) of the voting
shares of Customer.

"Certificate of Conditional Acceptance" shall mean Customer's certification of
Seller's completion of the Acceptance Test Procedure in the form set forth in
Exhibit C.

"Certificate of Final Acceptance" shall mean , for the [***],Customer's
certification of the Products' satisfaction of the Performance Criteria set
forth in Exhibit E.

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WITH THE COMMISSION.  CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
<PAGE>

"Change Order" shall mean any subsequent change to a Purchase Order initiated by
either Seller or Customer, including but not limited to, changes in Site
configuration and Products and Services needed for the Site project, which is
mutually agreed to by both parties.

"Conditional Acceptance" shall mean, [***] Initial Spectrum Clearing Order and
Follow-on Orders, the [***] of (i) the [***] Certificate of Conditional
Acceptance [***] or (ii) the [***] which a Product has [***].

"Final Acceptance" shall mean (i) for Products in the Initial Spectrum Clearing
Order, the date on which Customer has executed a Certificate of Final Acceptance
for the Products, and all Punchlist items have been resolved and (ii) for
Products in Follow-on Orders, the date on which all Punchlist items for a
Product have been resolved.

"Follow-on Order" shall mean any Products (and any associated Services) in
excess Initial Spectrum Clearing Order purchased by Customer pursuant to the
terms and conditions of this Agreement.

"Initial Spectrum Clearing Order" shall mean  Customer's initial purchase of a
number of Products (and any associated Services)for widespread deployment in a
single market which shall be ordered together on one Purchase Order pursuant to
the terms and conditions of this Agreement.

"Performance Criteria" shall mean the performance measures to be used for the
evaluation of the Products in the Initial Spectrum Clearing Order during the
Performance Evaluation Period set forth in Exhibit E.

"Performance Evaluation Period" shall mean the period of time specified in
Exhibit E during which the Products in the Initial Spectrum Clearing Order
in accordance with Exhibit E.

"Product" shall mean the Spotlight(TM) antenna system described in  Exhibit B
hereto or any additional products set forth in Exhibit B or any amendments
thereto as may be subsequently agreed to from time to time by Seller and
Customer.

"Punchlist" shall mean the list provided by Customer to Seller at Conditional
Acceptance which sets forth those mutually agreed items relating to a Product,
if any, to be resolved by Seller within ten (10) working days of Conditional
Acceptance of such Product.

"Purchase Order" shall mean any purchase order Customer may deliver to Seller
for the purchase of the Products and Services which incorporates the terms and
conditions of this Agreement and which has been accepted by Seller.

"Purchase Price" shall mean the price of the Products and the price of the
Services shown on Exhibit A or any other amount set forth in any amendments to
Exhibit A as may be subsequently agreed to from time to time by Seller and
Customer.

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

"Services" shall mean the engineering services set forth in Exhibit A or any
additional services set forth in any amendments to Exhibit A as may be
subsequently agreed to from time to time by Seller and Customer.

"Site" shall mean each of the Customer cell site locations at which a Product is
installed.

"Software" shall mean the (i) object-code computer programs embedded in the
Product which control and monitor the operation of the Product ("Embedded
Software"), and (ii) the Lamplighter PC-based graphical user interface computer
program for the Product, and all Features, Major Releases, Point Releases, and
Software Patches (as such terms are defined in Exhibit H), other updates and
modifications to such Software (the "Software Updates") and any documentation in
support thereof.

"Software License" shall mean the software license for the Software and Software
Updates to be delivered to Customer for use with the Products as set forth in
Exhibit D.

"Specifications" shall mean the specifications for the Products set forth in
Exhibit B and incorporated herein.

3. PURCHASE ORDERS; PRICING; CANCELLATIONS

               a.   Customer shall order Products and Services pursuant to this
          Agreement by submitting a Purchase Order to Seller at least ninety
          (90) days prior to date of delivery for such Products and Services.

               b.   Upon receipt of the Purchase Order, Seller shall have [***]
          to confirm or reject its acceptance of the Purchase Order in writing
          to the Customer, subject to completion of Site survey for each Product
          to be completed no later than [***] prior to the date of delivery
          specified on the Purchase Order. If Seller fails to reject acceptance
          within [***] after receipt of the Purchase Order, the Purchase Order
          will be deemed accepted.

               c.   If the Site Survey reveals that the Products configurations
          set forth in the Purchase Order must be changed in order to implement
          and install the Products, Seller shall notify Customer immediately
          with a written proposal for changes. In no event shall Seller's
          notification and submission of a written proposal for changes exceed
          [***] from the date of completion of Site survey.

               d.   Customer shall have [***] to accept the written proposal for
          changes upon receipt of the proposal. If accepted, Seller and Customer
          shall execute a written Change Order at which time such Change Order
          shall become binding on Seller and Customer subject to Section 3(e)
          below. If rejected, Customer may either inform the Seller in writing
          to proceed with the original Purchase Order or cancel the Purchase
          Order subject to section 3(e) below.

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

               e.   Customer may cancel delivery of a Product prior to Seller's
          shipment of the Product provided that if Customer directs such
          cancellation with less than [***] written notice from the delivery
          date specified in Purchase Order, Customer shall pay to Seller any
          nonrecurring losses associated with such cancellation and which are
          documented in writing by Seller, provided, however, that any such
          losses shall not exceed [***] of the Purchase Price of each Product
          included in such cancellation.

               f.   Within thirty days following Customer's completion of its
          seminannual budget, Customer shall give Seller, for planning purposes,
          a non-binding forecast of its estimated requirements for the Products
          and Services for the forthcoming [***].

4.   SHIPPING; TITLE; RISK OF LOSS

     a.   Unless otherwise instructed by Customer, and subject to section 3,
          Seller shall ship all Products to the destination designated in a
          Purchase Order on or before the delivery date(s) specified in a
          Purchase Order and render invoices in accordance with Section 6 below.
          Customer is responsible for the payment of all reasonable shipping
          charges, except as noted in Section 4(b) below, and any exceptional
          shipping charges required to fulfill a Purchase Order shall be agreed
          to in advance with Customer.

     b.   Products shall be packed by Seller, at no additional charge to
          Customer, in containers adequate to prevent damage during shipping,
          handling and storage.

     c.   Unless otherwise specified herein, title to Products sold by Seller to
          Customer shall vest in Customer on shipment of Product to Customer
          (except title to Software shall remain with Seller pursuant to the
          terms of the Software License attached as Exhibit D hereto).

     d.   Risk of loss or damage to any Product supplied hereunder shall pass to
          Customer upon Conditional Acceptance, except for Products installed by
          Customer, in which case risk of loss or damage shall pass to Customer
          on shipment of Product to Customer.

5.   WARRANTY

     a.   Seller warrants for a period [***] (the "Warranty Period") that (i)
          all Products furnished hereunder will be free from defects in
          materials, workmanship and title, (ii) all Products will conform in
          all material respects to the documentation and specifications provided
          by the Seller herein, (iii) the media on which the Software is
          contained will be free from defects in material and workmanship under
          normal use, and (iv) the Software will conform in all material
          respects to the documentation provided by Seller.  The warranties in
          this Agreement are given in

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      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

          lieu of all other warranties express or implied which are specifically
          excluded, including, without limitation, implied warranties of
          merchantibility and fitness for a particular purpose.

     b.   If Customer believes that there is a claim under the warranty set
          forth herein, Customer shall follow the procedures set forth in
          Exhibit H hereto (Product Maintenance).  If Seller is unable to repair
          or replace the Product so that it conforms to Specifications, Customer
          shall receive a refund of the prorated undepreciated portion of the
          Purchase Price actually paid by Customer to Seller for the returned
          portion of the Products.  The Purchase Price shall be depreciated over
          a five (5) year period for Software and a ten (10) year period for
          non-Software Products.  The actions taken by Seller under the Product
          Maintenance Program procedures set forth in Exhibit H shall be the
          full extent of Seller's liability and Customer's exclusive remedy with
          respect to a claim under this section 5.

     c.   This warranty does not apply to any claim which arises out of any one
          of the following: (i) the Product is used in other than its normal and
          customary manner; (ii) the Product has been subject to misuse,
          accident, neglect or damage by Customer; (iii) the Product has been
          installed, optimized or moved from its original installation site by
          any person other than Seller or a person who has been certified by
          Seller through completion of a Seller-sponsored training course to
          provide such services; (iv) unauthorized alterations or repairs have
          been made to the Product, or parts have been used in the Product which
          are not approved by Seller, such approval not to be unreasonably
          withheld (a current list of approved parts is set forth in Exhibit A);
          (v) the Product is not maintained pursuant to Seller maintenance
          programs or under the supervision of a person who has been certified
          by Seller to provide such maintenance service through completion of a
          Seller-sponsored training course described in Exhibit G; (vi) an event
          of Force Majeure has occurred; (vii) the failure of third party
          antennas, lines or interconnection facilities at the Site; and (viii)
          damage which occurs during shipment of equipment from Customer to
          Seller.

6.   INVOICES AND PAYMENT

     a.   For the Products in the Initial Spectrum Clearing Order only, the
payment schedule shall be as follows:

          1.   Seller [***] for [***] of the Purchase Price of the Products and
[***] of the Purchase Price of the Services [***] Products [***] of a
Certificate of Final Acceptance for such Products.

          2.   Seller [***] for the [***] of the Purchase Price for the Products
upon Final Acceptance of such Products.

          3.   [***] Final Acceptance for the Products in the Initial Spectrum
Clearing Order [***], Customer [***] (i) [**] of the Products [***] Seller
[***] or (ii) [***] Products to the Seller, Seller [***] such Products at
Seller's [***] to Customer [***] Purchase at Seller's [***] to Customer [***]
Purchase Price [***] for Products and Services [***] [***] such Products. Seller
shall [***] of [***] of the Products [***].

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

     b.   For Products and Services in all Follow-on Orders, Seller [***] as
follows: (i) [***] of the Purchase Price of each Product upon [***] Product to
Customer, (ii) [***] of the Purchase Price of each Product and [***] of [***]
Services [***] Conditional Acceptance of such Product, and (iii) [***] of the
Purchase Price of each Product promptly following Final Acceptance Follow-on
Order, Seller [***] of the Purchase Price of each Product [***] Product to
Customer and [***] Conditional Acceptance and Final Acceptance.

     c.   All invoices shall be computed on the basis of the prices set forth in
          Exhibit A [***] and shall identify and show separately quantities of
          Products, type of Services, total amounts for each item, shipping
          charges, applicable sales or use taxes and total amount due. Customer
          shall promptly pay Seller the amount due within 30 days of the date of
          invoice. Customer shall pay a late fee at the rate of one and one-half
          percent (1.5%) of the amount due for each month or portion thereof
          that the amount remains unpaid.

     d.   Customer shall be responsible for the payment of all sales, use and
          any other taxes applicable to the Products and Services provided by
          the Seller pursuant to this Agreement.  When Seller is required by law
          to collect such taxes, 100% thereof will be added to invoices as
          separately stated charges and paid by Customer in accordance with this
          section.

     e.   If Customer disputes any invoices rendered or amount paid, Customer
          will so notify Seller, and the parties will use their reasonable
          efforts to resolve such dispute expeditiously. [***].

7.   OBLIGATIONS OF CUSTOMER

     In addition to performing the other obligations set forth in this
     Agreement, Customer shall:

     a.   procure from appropriate regulatory authorities all necessary permits
          and station licenses as may be required to install and operate the
          system incorporating the Products;

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

     b.   maintain adequate property insurance for each Site, including coverage
          for each Product at a Site during the period of installation and
          operation prior to Conditional Acceptance; and

     c.   comply with its obligations set forth in Exhibit F.

8.   INFRINGEMENT INDEMNITY

     a.   Seller shall indemnify and hold harmless Customer and its Affiliates
          against any and all liabilities, losses, costs, damages and expenses,
          including reasonable attorney's fees, associated with any claim or
          action for actual or alleged infringement by any Product or Software
          supplied in accordance with this Agreement of any United States
          patent, trademark, copyright, trade secret or other intellectual
          property right incurred by Customer and its Affiliates as a result of
          Customer's use of such Products or Software in accordance with this
          Agreement provided that (i) Customer promptly notifies Seller in
          writing of the claim, (ii) Customer gives Seller full opportunity and
          authority to assume sole control of the defense and all related
          settlement negotiations, and (iii) Customer gives Seller information
          and assistance for the defense (Customer will be reimbursed for
          reasonable costs and expenses incurred in rendering such assistance,
          against receipt of invoices therefor). Subject to the conditions and
          limitations of liability stated in this Agreement, Seller shall
          indemnify and hold harmless Customer from all payments, which by final
          judgments in such claims, may be assessed against Customer on account
          of such alleged infringement and shall pay resulting settlements,
          costs and damages finally awarded against Customer by a court of law,
          arbitration or other adjudication of the claim.

     b.   Customer agrees that if the Products or Software become, or in
          Seller's opinion are likely to become, the subject of such a claim,
          Customer will permit Seller, at its option and expense, either to
          procure the right for Customer to continue using such Products or
          Software or to replace or modify same so that they become non-
          infringing as long as they continue to conform in all material
          respects to the specifications contained in this Agreement and
          Exhibits, and, if neither of the foregoing alternatives is available
          on terms which are acceptable to Seller, Customer shall at the written
          request of Seller, return the infringing or potentially infringing
          Products or Software and all the rights thereto at Seller's expense.
          Customer shall receive a refund of the prorated undepreciated portion
          of the Purchase Price actually paid by Customer to Seller for the
          returned portion of the Products. The Purchase Price shall be
          depreciated over a five (5) year period.

     c.   Seller shall have no obligation to Customer with respect to any claim
          of patent or copyright infringement which is based upon (i) adherence
          to specifications, designs or instructions furnished by Customer, (ii)
          the combination, operation or use of any Products supplied hereunder
          with products, software or data not supplied by Seller, (iii) the
          alteration of the Products or modification of any
<PAGE>

          Software made by any party other than Seller; or (iv) the Customer's
          use of a superseded or altered release of some or all of the Software
          if infringement would have been avoided by the use of a subsequent
          unaltered release of the Software that is provided to the Customer.

9.   INDEPENDENT CONTRACTOR

Seller hereby declares and agrees that Seller is engaged in an independent
business and will perform its obligations under this Agreement as an independent
contractor and not as the agent or employee of Customer and has no authority to
represent Customer as to any matters.   Seller shall be solely responsible for
payment of compensation to its personnel and for injury to them in the course of
their employment except to the extent that any intentional or negligent act of
Customer is solely and directly responsible for any such injury .  Seller is
responsible for payment of all federal, state, or local taxes or contributions
imposed or required under unemployment insurance, social security and income tax
laws for persons employed by Seller to perform Seller's obligations under this
Agreement.

10.  INDEMNIFICATION

Seller shall indemnify Customer, its employees and directors, and each of them,
against any loss, damage, claim,  or liability, arising out of, as a result of,
or in connection with the use of the Product in accordance with this Agreement
or the acts or omissions, negligent or otherwise, of Seller in the performance
of this Agreement, or a contractor or an agent of Seller or an employee of
anyone of them, except where such loss, damage, claim, or liability arises from
the sole negligence or willful misconduct of Customer, agents or its employees.
Seller shall, at its own expense, defend any suit asserting a claim for any
loss, damage or liability specified above, and Seller shall pay any costs,
expenses  and attorneys' fees that may be incurred by Customer in connection
with any such claim or suit or in enforcing the indemnity granted above,
provided that Seller (i) is given prompt notice of any such claim or suit and
(ii) full opportunity to assume control of the defense or settlement.  Neither
Seller nor Customer shall not be liable to the other for indirect or
consequential damages, including but not limited to lost profits.

11.  TERM AND TERMINATION

The term of this Agreement shall be three (3) years from the Effective Date. If
either party is in material default of any of its obligations under this
Agreement and such default continues for thirty (30) days after written notice
thereof by the party not in default, the nondefaulting party may cancel this
Agreement. In addition, a party may cancel this Agreement if a petition in
bankruptcy or under any insolvency law is filed by or against the other party
and is not dismissed within sixty (60) days of the commencement thereof.

12.  ASSIGNMENT

     a.   Any assignment by Seller of this Agreement or any other interest
          hereunder without Customer's prior written consent, shall be void,
          except assignment to

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<PAGE>

          a person or entity who acquires all or substantially all of the
          assets, business or stock of Seller, whether by sale, merger or
          otherwise.

     b.   Customer reserves the right to assign this Agreement or any portion
          hereof to any present or future Affiliate.  Notwithstanding the
          foregoing, without the prior written consent of Seller, (i) the
          Software license granted to Customer in the form of Exhibit D
          (Software License), may not be sublicensed, assigned or otherwise
          transferred by Customer except to Affiliates; (ii) the Products may
          not be transported, relocated, sold or otherwise transferred outside
          the United States and (iii) no assignment may be made to an entity
          which Seller considers to be a competitor.

     c.   Subject to the provisions of paragraphs a, and b above, this Agreement
          shall inure to the benefit of and be binding upon the respective
          successors and assigns, if any, of the parties hereto.

13.  [***] PRODUCT

Seller [***] to Customer an [***] in the Product to [***] Product (the "[***]
Product"). This [***] Product will [***] in Exhibit B, Section 4.1, in a [***]
in Exhibit B, Section 2.2.7 ([***]). Seller [***] to make [***] for [***]
Customer on [***] on the terms and conditions set forth in Exhibit A.

14.  NOTICES

Except as otherwise specified in this Agreement, all notices or other
communications hereunder shall be deemed to have been duly given when made in
writing and delivered in person or deposited in the United States mail, postage
prepaid, certified mail, return receipt requested, or by a reputable overnight
courier service providing proof of delivery, or by confirmed facsimile
transmission and addressed as follows:

To Seller:                                  To Customer:

Metawave Communications Corporation         ALLTEL Supply Inc.
8700 148th Avenue NE                        6625 The Corners Parkway
Redmond WA 98052                            Norcross, GA 30092
Attn: VP, Sales                             Attn.: H.S. Fisher, Jr.
Copy to: General Counsel                    Copy to:  Mark Kelso
Fax: 425 702 5976                           Fax: (770) 368-1449

The address to which notices or communications may be given to either party may
be changed by written notice given by such party to the other pursuant to this
section 14.

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      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.

<PAGE>

15.  COMPLIANCE WITH LAWS

Seller shall comply with all applicable federal, state and local laws,
regulations and codes, including the procurement of permits and licenses when
needed, in the performance of this Agreement.

16.  FORCE MAJEURE

Except for payment of moneys due, neither party shall be liable for delays in
delivery or performance or for failure to manufacture, deliver or perform
resulting from acts beyond the reasonable control of the party responsible for
performance.  Such acts shall include, but not be limited to (a) acts of God,
acts of a public enemy, acts or failures to act by the other party, acts of
civil or military authority, governmental priorities, strikes or other labor
disturbances, hurricanes, earthquakes, fires, floods, epidemics, embargoes, war,
riots, and loss or damage to goods in transit; or (b) inability to obtain
necessary products, components, services or facilities on account of causes
beyond the reasonable control of the delayed party or its suppliers.  In the
event of any such delay, the date(s) of delivery or performance shall be
extended for as many days are reasonably required due to the delay.  If such
delay continues for 45 days, either party may terminate the Purchase Order
affected by the event by providing written notice.

17.  GOVERNING LAW; DISPUTE RESOLUTION

     a.   This Agreement and each Purchase Order shall be construed in
          accordance with the internal laws of the State of Washington, without
          regard to its choice of law provisions.

     b.   Any and all disputes arising between the parties shall be resolved in
          the following order: (i) by good faith negotiation between
          representatives of Customer and Seller who have authority to fully and
          finally resolve the dispute to commence within ten (10) days of the
          request of either party; (ii) in the event that the parties have not
          succeeded in negotiating a resolution of the dispute within ten (10)
          days after the first meeting, then the dispute will be resolved by
          nonbinding mediation to be held in a mutually agreed location in the
          United States, using a mutually agreed upon non-affiliated neutral
          party having experience with or knowledge in the wireless
          communications equipment industry to be chosen within twenty (20) days
          after written notice by either party demanding mediation (the costs
          therefor to be shared equally); and (iii) if within sixty (60) days of
          the initial demand for mediation by the parties, the dispute cannot be
          resolved by mediation, then a party may institute litigation in a
          court having subject matter jurisdiction, and the parties expressly
          consent and submit themselves to the personal jurisdiction of such
          court.
<PAGE>

18.  DELAY PENALTIES

     a.   The parties agree that damages for delay are difficult to calculate
          accurately, and, therefore, agree that penalties will be paid for late
          performance of certain of Seller's obligations under this Agreement.

     b.   In the event that Seller [***] (i) complete the [***] by a date
          mutually agreed upon by the parties and set forth in a Purchase Order,
          Change Order or otherwise in writing, or (ii) [***] specified in a
          Purchase Order or Change Order which has been accepted by Seller,
          Seller shall immediately [***] has been delayed. Seller shall [***] as
          the case may be. Notwithstanding the foregoing, such [***]

     c.   [***] which (i) specified in a Purchase Order from Customer received
          by Seller and (ii) is later than the availability dates set forth in
          Exhibit B, Section 4.3 for CDMA Products will result in the following
          [***]; [***] for the CDMA Product specified in the Purchase Order
          [***] which shall be calculated on a basis of the [***] and the
          Purchase Price of each CDMA Product contained in such Purchase Order
          (the "Aggregate Purchase Price") provided that (i) Seller's [***] and
          (ii) the [***] the availability dates set forth in Exhibit B, Section
          4.3, and is not caused, in whole or in part, by [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

19.  GENERAL PROVISIONS

     a.   All information, data and materials provided by either party under
          this Agreement shall be subject to the terms and conditions of the
          Non-Disclosure Agreement between the parties dated April 10, 1996.

     b.   Seller and Customer may issue a joint press release concerning the
          execution of this Agreement. Such press release shall be subject to
          prior review and written approval by both parties, not to be
          unreasonably withheld.

     c.   Waiver by either party of any obligation or default by the other party
          shall not be deemed a waiver by such party of any other obligation or
          default.

     d.   Any rights of cancellation, termination or other remedies prescribed
          in this Agreement are cumulative and are not intended to be exclusive
          of any other remedies to which the injured party may be entitled at
          law or equity (including but not limited to the remedies of specific
          performance and cover) in case of any breach or threatened breach by
          the other party of any provision of this Agreement, unless such other
          remedies which are not prescribed in this Agreement are specifically
          limited or excluded by this Agreement.  The use of one or more
          available remedies shall not bar the use of any other remedy for the
          purpose of enforcing the provisions of this Agreement; provided,
          however, that a party shall not be entitled to retain the benefit of
          inconsistent remedies.

     e.   If any of the provisions of this Agreement shall be invalid or
          unenforceable, such invalidity or unenforceability shall not
          invalidate or render unenforceable the entire Agreement, but rather
          the entire Agreement shall be construed as if not containing the
          particular invalid or unenforceable provisions, and the rights and
          obligations of Seller and Customer shall be construed and enforced
          accordingly.

     f.   This Agreement, including all Exhibits attached to or referenced in
          this Agreement, shall constitute the entire agreement between Customer
          and Seller with respect to the subject matter hereof.

     g.   No provision of this Agreement shall be deemed waived, amended or
          modified by any party hereto, unless such waiver, amendment or
          modification is in writing and signed by a duly authorized
          representative of each of the parties.

     h.   This Agreement applies only to sales of Products and Services in the
          United States.

     i.   Each party shall comply with all applicable U.S. and foreign export
          control laws and regulations and shall not export or re-export any
          technical data or products except in compliance with the applicable
          export control laws and regulations of the U.S. and any foreign
          country.

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective duly authorized representatives.

Metawave Communications Corporation              ALLTEL Supply Inc.

By:        /s/ Richard Henderson                 By: /s/ H.S. Fisher, Jr.
    -----------------------------------              ---------------------------

Name:   Richard Henderson                        Name:   H.S. Fisher, Jr.
        -----------------                                ----------------

Title:  Vice President of Sales and Marketing    Title:  Senior Vice President,
        -------------------------------------            ----------------------
                                                         Operations
                                                         ----------

EXHIBITS ATTACHED:
A    Product and Services Pricing
B    Performance Specifications
C    Site Acceptance Test Procedure (ATP)
D    Software License
E    System Acceptance Test Procedure (ATP)
F    Installation and Optimization
G    Training
H    Product Maintenance Program

<PAGE>

                   EXHIBIT A: PRODUCTS AND SERVICES PRICING

                           TO THE AGREEMENT BETWEEN

                   METAWAVE COMMUNICATIONS CORP. ("SELLER")

                                      AND

                       ALLTEL SUPPLY, INC. ("CUSTOMER")

                      Metawave Communications Corporation
                            8700 148/th/ Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax 425 702-5970
                            http://www.metawave.com

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

  This document and the information in it is the proprietary and confidential
information of Metawave Communications Corporation and is provided by Metawave
  under an agreement of nondisclosure to the Customer for internal evaluation
 purposes only and is protected by applicable copyright and trade secret law.
 This document may only be disclosed or disseminated to those employees of the
  Customer who have a need to use it for evaluation purposes; no other use or
        disclosure can be made by Customer without Metawave's consent.

                (C) 1998, METAWAVE  COMMUNICATIONS  CORPORATION
                           CONFIDENTIAL PROPRIETARY

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

                       CONFIDENTIAL AND PROPRIETARY                   FINAL
<PAGE>

                                                   Products and Services Pricing
================================================================================

                         PRODUCTS AND SERVICES PRICING

For the purposes of uniformity and brevity, references to Agreement or to an
Exhibit shall refer to the Purchase Agreement to which this document is Exhibit
A and to the other Exhibits to that Agreement. All definitions set forth in the
Agreement shall apply hereto unless otherwise expressly defined herein.

1.   Introduction

This Exhibit A lists the Products and Services pricing and the Product quantity
discounts as of the Effective Date of the Agreement and throughout the term of
this Agreement. All payments for the Products and Services shall be made
according to the terms set forth in the Agreement. The prices included herein
are for products installed and services performed in the U.S.A.

2.   SpotLight Pricing

<TABLE>
<CAPTION>
[***]
--------------------------------------------------------------------------------
   SPOTLIGHT UNITS
 (BY NO. OF CHANNELS)                [***]                           [***]
--------------------------------------------------------------------------------
 <S>                                 <C>                             <C>
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
  [***]                              [***]                           [***]
--------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
LPA CONFIGURATION PRICING
--------------------------------------------------------------------------------
    Configuration                    [***]                       [***]
--------------------------------------------------------------------------------
<S>                                  <C>                        <C>
 4 LPA Module Assy.                  [***]                       [***]
--------------------------------------------------------------------------------
 16 LPA Module Assy.                 [***]                       [***]
--------------------------------------------------------------------------------
</TABLE>
*  SpotLight Tx/Rx includes all of the hardware and software as described in
Section 2 of Exhibit B except those items identified as optional or supplied by
Customer.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                                   Products and Services Pricing
================================================================================
          [***]

<TABLE>
<CAPTION>
4.   SpotLight Spares Pricing
     SPOTLIGHT RECOMMENDED SPARES KIT
--------------------------------------------------------------------------------
   PART NUMBER      DESCRIPTION              [***]     [***]          [***]
--------------------------------------------------------------------------------
   <S>              <C>                      <C>       <C>            <C>
   250-0035-XX      Tx Driver                [***]     [***]          [***]
--------------------------------------------------------------------------------
   250-0042-XX      Voice LNA                [***]     [***]          [***]
--------------------------------------------------------------------------------
   250-0044-XX      LNA Alarm                [***]     [***]          [***]
--------------------------------------------------------------------------------
   250-0082-XX      LNA Power                [***]     [***]          [***]
--------------------------------------------------------------------------------
   250-0083-XX      External I/O card        [***]     [***]          [***]
--------------------------------------------------------------------------------
   270-0002-XX      RX SMU Assy.             [***]     [***]          [***]
--------------------------------------------------------------------------------
   270-0026-XX      TX SMU Assy.             [***]     [***]          [***]
--------------------------------------------------------------------------------
                    LPA module               [***]     [***]          [***]
--------------------------------------------------------------------------------
                                    TOTALS:
--------------------------------------------------------------------------------
</TABLE>

Notes:

1.  The SpotLight Recommended Spares Kit list is for SpotLight configurations
    supporting up to 90 channels.
2.  Metawave recommends to maintain an inventory of one spares kit for every
    four SpotLight systems installed.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                                   Products and Services Pricing
================================================================================
<TABLE>
<CAPTION>
5.   CDMA Product Feature Packages
--------------------------------------------------------------------------------
 INITIAL RELEASE                        DESCRIPTION                   [***]
--------------------------------------------------------------------------------
 <S>                <C>                                               <C>
 [***]               [***]                                            [***]
--------------------------------------------------------------------------------
 [***]               [***]                                            [***]
--------------------------------------------------------------------------------
</TABLE>

Notes:

1.  [***]

2.  [***]

<TABLE>
<CAPTION>
6.   Engineering Services Pricing
     ENGINEERING SERVICES
--------------------------------------------------------------------------------
DESCRIPTION                                                      [***]
--------------------------------------------------------------------------------
<S>                                                              <C>
[***]                                                            [***]
--------------------------------------------------------------------------
[***]                                                            [***]
--------------------------------------------------------------------------
</TABLE>

Notes:
1.  [***]
2.  [***]
3.  [***]
4.  [***]

7.   Software Licensing Fee

The Software licensing fees for the most current versions of LampLighter and
SpotLight embedded system Software (available at the time of purchase of
SpotLight) are included in the Purchase Price of each SpotLight unit purchased.
Software Updates are available under the SMP described in Exhibit H or for
additional licensing fees.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                                   Products and Services Pricing
================================================================================
Maintenance Fees

     Software Maintenance Program (SMP) Fees

The SMP annual fee for LampLighter software and the SpotLight embedded system
software is [***] per each RF analog channel supported by SpotLight not to
exceed [***] per "Host System" per year where a Host System is defined herein as
that group of SpotLight units serving cellular RF infrastructure equipment
connected to a common Mobile Switching Center.

     Hardware Maintenance Program (HMP) Fees

Seller and Customer agree to negotiate in good faith the HMP fee prior to the
end of the Warranty Period.

9.   General Conditions For Order:

     1.   Customer shall provide the local air-time for all drive testing at no
          charge to Seller.

     2.   If Seller's Services are delayed for reasons beyond the control of
          Seller or if additional Services are required by Customer, the
          Services shown herein shall be adjusted accordingly, as mutually
          agreed upon by both parties.

     3.   Towers and transmission lines to the towers and antennas, or any costs
          associated with the preparation of towers and the site, not covered in
          Exhibit F, including the installation of antennas and adequate
          electrical power, are not included in the prices shown herein and are
          the responsibility of Customer.

     4.   Performance of the Services set forth herein is dependent upon
          Customer and or Seller obtaining any and all necessary licenses,
          permits and governmental approvals required to perform the Services
          set forth herein. Seller shall not be held liable for any non-
          performance due to delays by Customer in obtaining any of the above
          documentation and or approvals.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                                   Products and Services Pricing
================================================================================
<TABLE>
<CAPTION>
     SPOTLIGHT 2.0 FIELD REPLACEABLE UNIT (FRU) PRICE LIST
--------------------------------------------------------------------------------
     PART NUMBER         PART DESCRIPTION                             PRICE
--------------------------------------------------------------------------------
<S>                      <C>                                          <C>
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
</TABLE>

                                                   Products and Services Pricing
================================================================================

<TABLE>
--------------------------------------------------------------------------------
<S>                      <C>                                          <C>
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
     [***]               [***]                                        [***]
--------------------------------------------------------------------------------
</TABLE>

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                     EXHIBIT B: PERFORMANCE SPECIFICATIONS

                           TO THE PURCHASE AGREEMENT

                   SPOTLIGHT MULTIBEAM ANTENNA PLATFORM 2.0
                               TRANSMIT/RECEIVE

              (for use with Motorola HDII Base Station Equipment)

                      Metawave Communications Corporation
                            8700 148/th/ Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax  425 702-5970
                            http://www.metawave.com

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

  This document and the information in it is the proprietary and confidential
information of Metawave Communications Corporation and is provided by Metawave
  under an agreement of nondisclosure to the Customer for internal evaluation
 purposes only and is protected by applicable copyright and trade secret law.
 This document may only be disclosed or disseminated to those employees of the
  Customer who have a need to use it for evaluation purposes; no other use or
        disclosure can be made by Customer without Metawave's consent.

                (C)1998, Metawave  Communications  Corporation
                           CONFIDENTIAL PROPRIETARY

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

                                     FINAL

<PAGE>

SpotLight Multibeam Antenna Platform                  Performance Specifications
================================================================================

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                     <C>
1. Introduction.......................................................       3
2. System Description.................................................       3
     2.1. Introduction................................................       4
     2.2. General System Overview.....................................       4
          2.2.1. Operational Overview.................................       5
          2.2.2. SIG/SCAN.............................................       6
          2.2.3. Remote Access........................................       6
          2.2.4. Antennas.............................................       6
          2.2.5. Lightning Arrestor...................................       7
2.2.6.Rack Mounted Components.........................................       7
          2.2.7. Interfaces...........................................       8
     2.3. SpotLight Specifications....................................       9
          2.3.1. RF Performance.......................................       9
          2.3.2. Electrical Specifications............................       9
          2.3.3. Environmental Specifications.........................      10
          2.3.4. Physical Specifications..............................      10
          2.3.5. Alarming.............................................      10
          2.3.6. Reset................................................      10
          2.3.7. SMAP Frequency Reference.............................      10
     2.4. RF Performance..............................................      10
          2.4.1. Angular Diversity....................................      10
          2.4.2. Transmit Output Power................................      11
          2.4.3. Transmit Spurious Emissions..........................      11
     2.5. System Software.............................................      12
          2.5.1. LampLighter Software.................................      12
          2.5.2. Embedded System Software.............................      12
     2.6. Software Performance........................................      12
          2.6.1. Program Upgrades.....................................      12
          2.6.2. Programming and Development Standards................      12
          2.6.3. Built-In-Self-Test...................................      13
          2.6.4. Response Times.......................................      13
3. Regulatory Requirements............................................      13
   3.1 US.............................................................      13
4. Optional SpotLight Platform CDMA Features..........................      13
4.1 CDMA/AMPS/NAMPS Integration Feature...............................      13
4.2 RF Sector Synthesis Feature.......................................      13
4.3 CDMA Base Stations Supported......................................      14
</TABLE>
<PAGE>

SpotLight Multibeam Antenna Platform                  Performance Specifications
================================================================================

                          PERFORMANCE SPECIFICATIONS

For purposes of uniformity and brevity, references to Agreement or to an Exhibit
shall refer to the Products and Services Purchase Agreement to which this
document is Exhibit B and to the other Exhibits to that Agreement.  All
definitions set forth in the Agreement shall apply hereto.
Introduction
  The purpose of this document is to describe and specify Metawave's
  SpotLight(TM) 2.0 Multibeam Antenna Platform including:

  .  System operation
  .  Hardware and elements of the SpotLight equipment
  .  Interconnect between SpotLight equipment and the base station equipment

  While the specifications contained in this document are based on the most
  current information available, such information is based on cell site specific
  data and may not apply to all cell sites contained within a system.  Metawave
  reserves the right to make changes to any design, specification, manufacturing
  techniques and/or product testing procedures provided those new specifications
  meet the minimum requirements contained in this Exhibit, Exhibit G and Exhibit
  H.   The new specifications shall be provided to Customer at least 60 days
  prior to the date of general availability of the Products.

  ACRONYMS AND TERMS DEFINITION
  -----------------------------

  C/I          Carrier to Interference Ratio

  FRU          Field Replaceable Unit

  LNA          Low Noise Amplifier

  LPA          Linear Power Amplifier

  RCU          Radio Channel Unit (P/O Motorola Cell Equipment)

  RF           Radio Frequency

  Rx           Receive

  SMAP         Spotlight Multibeam Antenna Platform

  SMU          Spectrum Management Unit

  Tx           Transmit

  TxCD         Transmit Combiner Driver
<PAGE>

SpotLight Multibeam Antenna Platform                  Performance Specifications
================================================================================

2.   System Description

     [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

3.   Regulatory Requirements
          This section specifies requirements which are set primarily by local
          and/or national governing bodies, consortiums and standards
          committees.

          The SpotLight system complies with appropriate US FCC regulations
          (includes both RF and EMI). Specifically, the SMAP shall comply with
          the resolutions defined in CFR47 part 22 and part 15.

          The SpotLight system is UL listed.

4.   [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                EXHIBIT C: SITE ACCEPTANCE TEST PROCEDURE (ATP)

                               TO THE AGREEMENT

                                    BETWEEN

                   METAWAVE COMMUNICATIONS CORP. ("SELLER")

                                      AND

                        ALLTEL SUPPLY INC. ("CUSTOMER")

                      Metawave Communications Corporation
                            8700 148/th/ Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax  425 702-5970
                            http://www.metawave.com

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

  This document and the information in it is the proprietary and confidential
information of Metawave Communications Corporation and is provided by Metawave
  under an agreement of nondisclosure to the Customer for internal evaluation
 purposes only and is protected by applicable copyright and trade secret law.
 This document may only be disclosed or disseminated to those employees of the
  Customer who have a need to use it for evaluation purposes; no other use or
        disclosure can be made by Customer without Metawave's consent.

                (C)1998, Metawave  Communications  Corporation
                           CONFIDENTIAL PROPRIETARY

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

                                                                           FINAL
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
1. Introduction............................................................   3
2. Acceptance Tests........................................................   3
     2.1. LampLighter Installation Test....................................   4
     2.2. System Configuration Test........................................   5
     2.3. Transmit Effective Radiated Power (Tx ERP) Test..................   6
     2.4. Receive Sensitivity Test.........................................   8
     2.5. Alarm Functionality Test.........................................   9
     2.6. Call Processing Test.............................................  11
</TABLE>

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

                         SITE ACCEPTANCE TEST PROCEDURE

                                     [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                          SOFTWARE LICENSE AGREEMENT
                          --------------------------

                                   EXHIBIT D

                           TO THE PURCHASE AGREEMENT

                                    BETWEEN

                METAWAVE COMMUNICATIONS CORPORATION ("SELLER")

                                      AND

                       ALLTEL SUPPLY, INC. ("CUSTOMER")

1.  DEFINITIONS

    "Agreement" shall mean the Purchase Agreement between Seller and Customer
    executed concurrently herewith, and the Exhibits attached thereto, including
    this Exhibit E (Software License).

    "Software" shall mean the (i) object-code computer programs embedded in the
    Spotlight Unit which control and monitor the operation of the Spotlight Unit
    ("Embedded Software"), and (ii) the Lamplighter(TM) PC-based graphical user
    interface computer program for the Spotlight Unit, and all Features, Major
    Releases, Point Releases, Software Patches, SP Software (as such terms are
    defined in Exhibit H), other updates and modifications ("Software Updates")
    and any documentation in support thereof .

    "Spotlight Unit" shall mean the Spotlight(TM) antenna system described in
    Exhibit B.

    Any terms not defined herein shall have the same meanings as in the
    Agreement and the Exhibits thereto.

2.  SCOPE

    Pursuant to the Agreement, Software will be delivered by Seller to Customer
    for use with a Spotlight Unit according to the terms of the Agreement and
    this Exhibit. Customer shall then become a licensee with respect to such
    Software.

3.  LICENSING GRANT

    3.1  Concurrent with execution of the Agreement, and subject to the terms
         and conditions set forth herein, Seller grants to Customer a revocable,
         non-exclusive and non-transferable license under Seller's applicable
         proprietary rights to use Software delivered to Customer hereunder.
         Such use shall apply only to operate a Spotlight Unit delivered under
         the Agreement.

   3.2   The licensing fees for the current versions of the Embedded Software
         and of Lamplighter(TM) Software are included in the Purchase Price for
         the Spotlight Unit. Software Updates are available under the Software
         Maintenance Program described in Exhibit H or for additional licensing
         fees.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

4. LIMITATIONS ON USE OF SOFTWARE

   4.1   Without the prior written consent of Seller, Customer shall only use
         the Software in conjunction with a single Spotlight Unit existing
         within the site specified in the Purchase Order ("Designated Spotlight
         Unit").

   4.2   Customer may use the Software to perform the activities listed in
         section 2.5 of Exhibit B and those activities available in future
         enhancements or features.  Under no condition shall the Software be
         used for any other purpose, including, but not limited to, substituted
         Spotlight Units, or Spotlight Units not owned by Customer, or Spotlight
         Units located at a location other than the site specified in the
         Purchase Order.

   4.3   The License granted to Customer in Section 2 is personal and may not be
         transferred to another Spotlight or site or another entity without the
         written consent of Seller.

   4.4   The Software is subject to laws protecting patents, trade secrets,
         know-how, confidentiality and copyright.

   4.5   Customer shall not translate, modify, adapt, decompile, disassemble, or
         reverse engineer the Software or any portion thereof.

   4.6   Unless otherwise expressly agreed by Seller, Customer shall not permit
         its directors, officers, employees or any other person under its direct
         or indirect control, to write, develop, produce, sell, or license any
         software that performs the same functions as the Software by means
         directly attributable to access to the Software (e.g. reverse
         engineering or copying).

   4.7   Customer shall not export the Software from the United States without
         the written permission of Seller.  If written permission is granted for
         export of the Software, then Customer shall comply with all U.S. laws
         and regulations for such exports and shall hold Seller harmless,
         including legal fees and expenses for any violation or attempted
         violation of the U.S. export laws.

   4.8   Customer acknowledges that Seller owns the Software and that any rights
         therein not specifically granted in this License are the exclusive
         property of Seller.

5. RIGHT TO COPY, PROTECTION AND SECURITY

   5.1   Software provided hereunder may be copied (for back-up purposes only)
         in whole or in part, in printed or machine-readable form for Customer's
         internal use only, provided, however, that no more than two (2) printed
         copies and two (2) machine-readable copies shall be in existence at any
         one time without the prior written consent of Seller, other than copies
         electronically resident in the Spotlights.

   5.2   With reference to any copyright notice of Seller associated with
         Software, Customer agrees to include the same on all copies it makes in
         whole or in part.  Seller's copyright notice may appear in any of
         several forms, including machine-readable form.  Use of a copyright
         notice on the Software does not imply that such has been published or
         otherwise made generally available to the public.
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

   5.3   Customer agrees to keep confidential, in accordance with the terms of
         the Agreement or a non disclosure agreement signed by the parties, and
         not provide or otherwise make available in any form any Software or its
         contents, or any portion thereof, or any documentation pertaining to
         the Software, to any person other than employees of Customer or Seller.

   5.4   Software is the sole and exclusive property of Seller and no title or
         ownership rights to the Software or any of its parts, including
         documentation, is transferred to Customer.

   5.5   Customer acknowledges that it is the responsibility of Customer to take
         all reasonable measures to safeguard Software and to prevent its
         unauthorized use or duplication.

6. REMEDIES

   Customer acknowledges that violation of the terms of this Exhibit or the
   Agreement shall cause Seller irreparable harm for which monetary damages may
   be inadequate, and Customer agrees that Seller may, in addition to any other
   legal or equitable remedy it may have, seek temporary or permanent injunctive
   relief without the need to prove actual harm in order to protect Seller's
   interests.

7. TERM

   Unless otherwise terminated pursuant to Section 8 hereof, or in the event
   that Customer is required to return the Software pursuant to section 8(b) of
   the Purchase Agreement, the term of the license granted pursuant to Section 2
   herein shall be perpetual.

8. TERMINATION

   8.1    The license granted hereunder may be terminated by Customer upon one
          (1) month's prior written notice.

   8.2    Seller may terminate the license granted hereunder if Customer is in
          material default of any of the terms and conditions of this Exhibit D
          (Software License Agreement) , and such termination shall be effective
          if Customer fails to correct such default within thirty (30) days
          after written notice thereof by Seller. The provisions of Sections 4
          and 5 herein shall survive termination of any such license.

   8.3    Within one (1) month after termination of the license granted
          hereunder, Customer shall furnish to Seller a document certifying that
          through its best efforts and to the best of its knowledge, the
          original and all copies in whole or in part of all Software, in any
          form, including any copy in an updated work, have been returned to
          Seller or destroyed. With prior written consent from Seller, Customer
          may retain one (1) copy for archival purposes only.

9. RIGHTS OF THE PARTIES

   9.1    Nothing contained herein shall be deemed to grant, either directly or
          by implication, estoppel, or otherwise, any license under any patents,
          patent applications or copyrights of Seller except as expressly
          granted herein.

   9.2    Rights in programs or operating systems of third parties, if any, are
          further limited by their license agreements with such third parties,
          which agreements are hereby
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

          incorporated by reference thereto and made a part hereof as if fully
          set forth herein. Customer agrees to abide thereby.

   9.3    During the term of the license granted pursuant to Section 2 herein
          and for a period of one (1) year after expiration or termination,
          Seller, and where applicable, its licensor(s), or their
          representatives may, upon prior notice to Customer, a) inspect the
          files, computer processors, equipment, facilities and premises of
          Customer during normal working hours to verify Customer's compliance
          with this Agreement, and b) while conducting such inspection, copy
          and/or retain all Software, including the medium on which it is stored
          and all documentation that Customer may possess in violation of the
          license or the Agreement.

   9.4    Customer acknowledges that the provisions of this Exhibit E are
          intended to inure to the benefit of Seller and its licensors and their
          respective successors in interest. Customer acknowledges that Seller
          or its licensors have the right to enforce these provisions against
          Customer, whether in Seller's or its licensor's name.

10.  LIMITATIONS ON SOFTWARE

     Customer understands that errors occur in Software and Seller makes no
     warranty that the Software will perform without error. Customer agrees that
     it is Customer's responsibility to select and test the Software to
     determine that is meets Customer's needs. Customer accepts the Software "as
     is" subject to the warranty set forth in Section 5 of the Purchase
     Agreement.

11.  [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

12.  ENTIRE UNDERSTANDING

     12.1  This Exhibit D (Software License) is a part of, and is to be read
           together with, the Agreement which contains additional terms and
           conditions, warranties and indemnities applicable to the Software.

     12.2  Notwithstanding anything to the contrary in other agreements,
           purchase orders or order acknowledgments, the Agreement, the Software
           specifications set forth in Exhibit B and this Exhibit D set forth
           the entire understanding and obligations regarding use of Software,
           implied or expressed.

<PAGE>

               EXHIBIT E: SYSTEM ACCEPTANCE TEST PROCEDURE (ATP)

                               TO THE AGREEMENT

                                    BETWEEN

                   METAWAVE COMMUNICATIONS CORP. ("SELLER")

                                      AND

                       ALLTEL SUPPLY, INC. ("CUSTOMER")

                      Metawave Communications Corporation
                             8700 148th Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax 425 702-5970
                            http://www.metawave.com

                        CONFIDENTIAL PROPRIETARY                      FINAL

--------------------------------------------------------------------------------
This document and the information in it is the proprietary and confidential
information of Metawave Communications Corporation and is provided by Metawave
under an agreement of nondisclosure to the Customer for internal evaluation
purposes only and is protected by applicable copyright and trade secret law.
This document may only be disclosed or disseminated to those employees of the
Customer who have a need to use it for evaluation purposes; no other use or
disclosure can be made by Customer without Metawave's consent.

                (c)1998, Metawave  Communications  Corporation
                           CONFIDENTIAL PROPRIETARY
--------------------------------------------------------------------------------
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

                               Table of Contents

<TABLE>
<CAPTION>
<S>                                                                                                     <C>
1. Introduction......................................................................................... 3
2. System (ATP)......................................................................................... 3
        2.1. Network Planning Phase..................................................................... 3
        2.2. Baseline Performance Collection Phase...................................................... 5
        2.3. SpotLight Installation and Site ATP Phase.................................................. 7
        2.4. SpotLight Network Optimization Phase....................................................... 7
 2.5    SpotLight Performance Collection, Evaluation and Sign-off Phase................................. 8
</TABLE>
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

                         SPECTRUM CLEARING SYSTEM ATP

1.   Introduction

          The objective of the spectrum clearing System Acceptance Test
          Procedure (ATP) is to evaluate the system-wide performance achieved
          through a system wide deployment of Metawave's SpotLight Multibeam
          Antenna Platform ("SpotLight") to provide a network capable of
          carrying the analog traffic predicted in the market forecast while
          maintaining analog service after having cleared spectrum for a CDMA
          carrier. The spectrum clearing System ATP will be performed in a
          single ALLTEL market determined by ALLTEL.

          The System ATP will occur in the following five phases:

          1.   Network Planning,

          2.   Baseline Performance Collection,

          3.   SpotLight Installation and Site ATP,

          4.   SpotLight Network Optimization,

          5.   SpotLight Performance Collection, Evaluation and Sign-Off.

2.   System (ATP)

          The System ATP consists of a comparison of test results from a
          baseline period prior to commercial operation of SpotLight (Baseline
          Performance Collection Phase) with results from a period of time in
          which the SpotLight units are installed and network optimized
          (SpotLight Performance, Evaluation and Sign-off Phase). The ATP uses
          the following tests:

          .    [***]
          .    [***]
          .    [***]
          .    [***]
          .    [***]
          .    [***]

     2.1.      Network Planning Phase

               2.1.1.    Entrance Criteria

               In order for ALLTEL and Metawave to produce an accurate network
               plan, ALLTEL must provide the following information:

               1.   All cell site specific information including:

                    .    [***]
                    .    [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL              CONFIDENTIAL PROPRIETARY               Page 3 of 10
Exhibit E to the Agreement
FINAL

* Confidential treatment is requested for the language which has been
  underscored or marked. Such language has been deleted from the copy filed with
  the SEC.
<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================
               .    [***]

               .    [***]

               .    [***]

          2.   receive antenna type with orientation if not omni-directional,

          3.   transmit antenna type with orientation if not omni-directional,

          4.   signaling antenna type with orientation if not omni-directional,

          5.   cell site to antenna cable type and length,

          6.   link budget - including effective radiated power for both
               signaling and voice channels,

          7.   number of voice channels,

          8.   frequency planning information;

               .    frequency chart for the network,

               .    DCC used at each site,

               .    SAT/DSAT used at each site,

               .    signaling channel used at each site,

               .    frequency group used at each site,

               .    forward link power control settings,

               .    reverse link power control settings,

          9.   [***]

          10.  [***]

          11.  [***]

          12.  [***]

          13.  [***]

          14.  [***]

               .    [***]

               .    [***]

               .    [***]

               .    [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 4 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

     2.1.2. Tasks:

     Metawave and ALLTEL must generate a network plan that allows for the
     predicted analog growth while maintaining the current network performance
     with [***] cleared.

     2.1.3  Exit Criteria

     Metawave and ALLTEL shall mutually agree upon and document the following:

     [***]

2.2. Baseline Performance Collection Phase

     2.2.1.  Entrance Criteria:

     Successful completion of 2.1.

     2.2.2.  Tasks:

     Collection of switch statistic data and [***].

     2.2.2.1. Performance Criteria

                    2.2.2.1.1. Switch Statistics Collection

     In order to collect the information necessary for the evaluation, [***]

     [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 5 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================
          [***]

                          2.2.2.1.2. [***] Drive Test

          The purpose of the drive testing is to determine the baseline network
          [***] measurements from both the forward and reverse links. This will
          be compared to the network [***]

          The drive testing and analysis will be performed in the same manner
          before and after the spectrum clearing. The agreed upon drive route
          will be characterized ten times. It will be driven each day of a non-
          holiday week, Monday through Friday, at busy hour and non-busy hour,
          the times of each being market dependent and agreed upon by ALLTEL and
          Metawave.

          Both ALLTEL and Metawave personal must be present during the drive
          test data collection.

          For the analysis of the drive test data, [***]

          The [***]

          2.2.3.  Exit Criteria:

          A) Metawave and ALLTEL will sign off on a document confirming the
          validity of baseline switch statistic data and drive test data.

     2.3. SpotLight Installation and Site ATP Phase

          2.3.1.  Entrance Criteria:

          A) [***]

          B) [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 6 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

          2.3.2.  Tasks:

          [***]

          2.3.3.  Exit Criteria:

          [***]

     2.4. SpotLight Network Optimization Phase

          2.4.1.  Entrance Criteria

          [***]

          2.4.2.  Tasks:

          [***]

          2.4.3.  Exit Criteria:

          [***]

     2.5. SpotLight Performance Collection, Evaluation and Sign-off Phase

          2.5.1.  Entrance Criteria:

          [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 7 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

     2.5.2. Tasks:

     Collection and evaluation of [***].

          2.5.2.1. Performance Criteria

                    2.5.2.1.1. Switch Statistic Collection

     [***]

                                2.5.2.1.2 [***]

     The collection of [***] as defined in 2.2.2.1.2.

     2.5.3  Exit Criteria

     [***]

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 8 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

SpotLight Multibeam Antenna Platform              Site Acceptance Test Procedure
================================================================================

                        Certificate of Final Acceptance

           (for the Products in the Initial Spectrum Clearing Order)

IN WITNESS WHEREOF, Metawave Communications Corporation and Customer certify
that the following tests have been performed with the indicated results.

--------------------------------------------------------------------------------
 Test Performed                         Passed      Failed      See Comments
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------
 [***]                                    [_]         [_]            [_]
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, Metawave Communications Corporation and Customer certify
that the products and services have been accepted at the following cell sites on
the following dates in accordance with the terms and conditions set forth in the
Products and Services Purchase Agreement ("Agreement'') dated ______________
between Metawave and Customer, and that the services have been performed and
products perform as specified in the Agreement.

Market Name & Number: _________________    Date: ___________________

Metawave Communications Corporation:    Customer: ____________________________

By: ________________________________    By: __________________________________
              (Signature)                               (Signature)

Name: ______________________________    Name: ________________________________
             (Please Print)                            (Please Print)

Title: _____________________________    Title: _______________________________
             (Please Print)                            (Please Print)

Date: ______________________________    Date: ________________________________
             (Please Print)                            (Please Print)

                                   Comments

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

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

--------------------------------------------------------------------------------
                                (Customer Copy)

--------------------------------------------------------------------------------
Metawave/ALLTEL             CONFIDENTIAL PROPRIETARY                Page 9 of 10
Exhibit E to the Agreement
FINAL

*** Confidential treatment is requested for the language which has been
    underscored or marked. Such language has been deleted from the copy filed
    with the SEC.

<PAGE>

   EXHIBIT F: SPOTLIGHT IMPLEMENTATION, INSTALLATION AND SITE COMMISSIONING

                           TO THE PURCHASE AGREEMENT

                                    BETWEEN

                                  ("SELLER")

                                      AND

                                 ("CUSTOMER")

                      Metawave Communications Corporation
                            8700 148/th/ Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax 425 702-5970
                            http://www.metawave.com

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

This document and the information in it is the proprietary and confidential
information of Metawave Communications Corporation and is provided by Metawave
under an agreement of nondisclosure to the Customer for internal evaluation
purposes only and is protected by applicable copyright and trade secret law.
This document may only be disclosed or disseminated to those employees of the
Customer who have a need to use it for evaluation purposes; no other use or
disclosure can be made by Customer without Metawave's consent.

                (c)1997, Metawave  Communications  Corporation
                           CONFIDENTIAL PROPRIETARY
--------------------------------------------------------------------------------

                                     FINAL
<PAGE>

                                  Implementation, Installation and Commissioning
============================================================================

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                   <C>
 1.  Scope........................................................... 3
 2.  Commencement of Work............................................ 3
 3.  Schedule A: Implementation Engineering.......................... 3
 4.  Schedule B: Cell Site Installation.............................. 4
 5.  Schedule C: Site Commissioning.................................. 5
 6.  Acceptance Test Procedure (ATP)................................. 5
 7.  Customer Responsibilities....................................... 5
 8.  Invoices & Payment.............................................. 6
 9.  Right to Subcontract............................................ 6
10.  Supervision..................................................... 6
11.  Extra Work...................................................... 7
12.  Special Transportation.......................................... 7
</TABLE>
<PAGE>

                                  Implementation, Installation and Commissioning
================================================================================

               SPOTLIGHT IMPLEMENTATION, INSTALLATION AND SITE
                                 COMMISSIONING

For purposes of uniformity and brevity, references to Agreement or to an Exhibit
shall refer to the Products and Services Purchase Agreement to which this
document is Exhibit F and to the other Exhibits to that Agreement. All
definitions set forth in the Agreement shall apply hereto.

1.   SCOPE
     1.1  THIS EXHIBIT INCLUDES A DESCRIPTION OF THE ENGINEERING SERVICES
          REQUIRED TO PLACE A SPOTLIGHT PLATFORM INTO COMMERCIAL SERVICE:
          .    Schedule A: Implementation

          .    Schedule B: Installation

          .    Schedule C: Site Commissioning

     1.2  CUSTOMER AGREES TO ACCEPT SCHEDULES A, B AND C ACCORDING TO THE TERMS
          AND CONDITIONS OF THIS EXHIBIT AND TO PAY TO METAWAVE THE PRICES SET
          FORTH IN EXHIBIT A FOR SUCH SERVICES.

2.   COMMENCEMENT OF WORK
     2.1  IMPLEMENTATION ENGINEERING SHALL COMMENCE IN ACCORDANCE WITH THE
          PROJECT SCHEDULE AS SET FORTH IN A PURCHASE ORDER.
     2.2  INSTALLATION AND COMMISSIONING SHALL COMMENCE WITHIN A REASONABLE TIME
          AFTER ARRIVAL OF THE PRODUCTS AT THE SITE AND IN ACCORDANCE WITH THE
          PROJECT SCHEDULE AS SET FORTH IN A PURCHASE ORDER.

3.   SCHEDULE A:  IMPLEMENTATION ENGINEERING
     3.1  SITE APPRAISAL AND INSTALLATION ANALYSIS
            In accordance with the project schedule as set forth in a Purchase
            Order, Metawave and Customer shall conduct a site walk to appraise
            the Site and perform an installation analysis. The information
            gathered at the site walk will be used to develop a Scope of Work.
            The following information is examined and recorded during a Site
            walk:

            .  dimensions of cell site and available space,

            .  primary power availability and distribution,

            .  Customer supplied equipment,

            .  number of channels,
<PAGE>

                                  Implementation, Installation and Commissioning
================================================================================

            .  current antenna configuration,

            .  current system traffic statistics.

     3.2  SCOPE OF WORK
            Seller shall prepare a Scope of Work (SOW) document from the
            information collected during the Site walk. The SOW, shall be
            mutually agreed upon by both Seller and Customer. The SOW document
            will contain the materials and resources required from Seller and
            Customer to perform the installation and shall contain the Network
            Plan required to complete the commissioning of each cell site.

4.   SCHEDULE B: CELL SITE INSTALLATION
     4.1  ALL INSTALLATION WILL BE PERFORMED IN ACCORDANCE WITH THE INSTRUCTIONS
          AND TECHNIQUES AS DESCRIBED IN THE SERVICE MANUALS SUPPLIED WITH THE
          EQUIPMENT.
     4.2  UPON THE COMPLETION OF THE CELL SITE INSTALLATION(S), METAWAVE WILL
          PROVIDE THE FOLLOWING DOCUMENTATION FOR EACH CELL SITE:

            .  Site Walk with documentation,

            .  Scope of Work (SOW),

            .  Floor plan,

            .  SpotLight-to-HDII Channel Mapping documentation,

            .  LampLighter Settings document,

            .  Antenna Sweep records,

            .  Installation Verification Test Data sheets,

            .  Configuration and Integration Test Data sheets,

            .  Link Budget spread sheet/Tx Path Attenuator Calculations,

            .  Sig/Scan Installation diagram.

     4.3  INSTALLATION TEST SCHEDULE (REFER TO SPOTLIGHT SYSTEMS MANUAL,
          CHAPTERS 7 AND 8)

                                     [***]

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                  Implementation, Installation and Commissioning
================================================================================

5.   SCHEDULE C: Site Commissioning
          UPON COMPLETION OF THE SPOTLIGHT INSTALLATION, METAWAVE WILL INFORM
          CUSTOMER THAT SPOTLIGHT IS READY FOR COMMISSIONING (BASED ON THE
          NETWORK PLAN IN THE SOW). COMMISSIONING INCLUDES THE FOLLOWING
          ACTIVITIES:

                                     [***]

6.   ACCEPTANCE TEST PROCEDURE (ATP)
Within 24 hours after Seller has advised Customer that installation and
commissioning are complete, Customer shall furnish representative to witness the
Acceptance Test Procedure (ATP) as set forth in Exhibit C (Acceptance Test
Procedure).  The representatives shall then be available on a continuous basis
to witness the ATP.

7.   CUSTOMER RESPONSIBILITIES
     7.1  ANY CHANGES TO THE SOW MUST BE MUTUALLY AGREED UPON BY BOTH SELLER AND
          CUSTOMER, IN WRITING, AND SHALL BECOME AN ATTACHMENT TO THE PURCHASE
          AGREEMENT.
     7.2  CUSTOMER IS RESPONSIBLE FOR OBTAINING ANY REQUIRED OPERATING AUTHORITY
          AND ALL REQUIRED APPROVALS AND PERMITS TO INSTALL AND OPERATE THE
          WIRELESS NETWORK.
     7.3  INFORMATION, DOCUMENTATION, FACILITIES AND SERVICES UNDER CUSTOMER'S
          CONTROL OR REASONABLY OBTAINABLE BY CUSTOMER SHALL BE FURNISHED BY
          CUSTOMER IN A TIMELY MANNER IN ORDER TO FACILITATE THE ORDERLY
          PROGRESS OF THE WORK. INCLUDED, WITHOUT IMPLIED LIMITATION, SHALL BE:
          ACCESS AND RIGHT OF ENTRY TO ALL SITES; REGULATORY FILING

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                                  Implementation, Installation and Commissioning
================================================================================

          INFORMATION; FLOOR PLANS; AND ANY SUPPORTING DOCUMENTS WHICH MAY
          AFFECT SITE ENGINEERING OR INSTALLATION ANALYSIS.
     7.4  IN THE EVENT THAT CUSTOMER HAS NOT MADE PERMANENT SITES AVAILABLE TO
          RECEIVE THE EQUIPMENT BY THE SITE AVAILABILITY DATE AS SET FORTH IN
          THE SOW, METAWAVE, AT ITS OPTION, MAY SHIP THE EQUIPMENT TO A
          WAREHOUSE IN OR NEAR THE SITE, AND CUSTOMER SHALL BEAR THE COSTS OF
          INSURANCE, WAREHOUSING, RELOADING, TRANSPORTING, OFF-LOADING AND
          MOVING THE EQUIPMENT ONTO THE PERMANENT SITE WHEN SUCH SITE BECOMES
          AVAILABLE AS WELL AS BEAR THE RESPONSIBILITY FOR SAFEKEEPING AND
          WAREHOUSING OF THE EQUIPMENT IN ENVIRONMENTAL CONDITIONS AS SET OUT IN
          THE SPECIFICATIONS.
     7.5  CUSTOMER SHALL MAKE EACH SITE AVAILABLE TO SELLER FOR WORK 24 HOURS
          PER DAY, SEVEN DAYS PER WEEK. SITE ACCESS INCLUDES PROVIDING METAWAVE
          WITH KEYS, PASS CODES, SECURITY CLEARANCES, ESCORT, ETC., NECESSARY TO
          GAIN ENTRANCE TO AND EXIT FROM THE WORK AREA. WAIVER OF LIABILITY OR
          OTHER RESTRICTIONS SHALL NOT BE IMPOSED AS A SITE ACCESS REQUIREMENT.
     7.6  CUSTOMER IS AT ALL TIMES RESPONSIBLE FOR MAINTAINING PROPER
          ENVIRONMENTAL CONDITIONS AT EACH SITE. TEMPERATURE, HUMIDITY, DUST,
          ETC., SHALL BE MONITORED AND CONTROLLED WITHIN THE RECOMMENDED RANGES
          SET FORTH IN THE EQUIPMENT SPECIFICATIONS.
     7.7  CUSTOMER IS RESPONSIBLE FOR TOWER SPECIFICATIONS FOR THE LOADING OF
          THE SPOTLIGHT ANTENNAS AND TRANSMISSION LINES.
     7.8  ALL CUSTOMER-PROVIDED CABLES AND WIRING SHALL BE RUN TO THE IMMEDIATE
          AREA OF THE METAWAVE-SUPPLIED EQUIPMENT.
     7.9  CUSTOMER SHALL GROUND SELLER EQUIPMENT AND PROVIDE LIGHTING PROTECTION
          FOR THE RF SYSTEM.
     7.10 CUSTOMER SHALL PROVIDE SELLER WITH THE HARDWARE REVISION AND SOFTWARE
          LOAD OF EACH BASE STATION THAT SELLER'S PRODUCTS ARE TO BE INTERFACED
          TO.
     7.11 CUSTOMER SHALL PROVIDE, AT SELLER'S REQUEST AND IN A TIMELY FASHION,
          DATABASE INFORMATION, INCLUDING BUT NOT LIMITED TO, NETWORK STATISTICS
          AND FREQUENCY INFORMATION BEFORE AND AFTER THE INSTALLATION OF
          SELLER'S PRODUCTS.

8.   INVOICES & PAYMENT
Invoices and payment for implementation, installation and commissioning shall be
made in accordance with the Agreement.

9.   RIGHT TO SUBCONTRACT
     Seller shall have the right to subcontract the implementation, installation
     and commissioning work in whole or in part.

<PAGE>

                                  Implementation, Installation and Commissioning
================================================================================

10.  SUPERVISION
     Seller shall appoint a Program Manager to supervise the implementation,
     installation and commissioning of the Products. Customer shall appoint a
     Program Manager who shall have authority to make changes that may be
     required during the performance of such services.
11.  EXTRA WORK
     Extra work to be performed by Seller not specified in this Exhibit but
     required to complete installation or commissioning shall be authorized in
     writing by Customer prior to the commencement of such work. If mutually
     agreed-upon, such work shall be performed by Seller at its then prevailing
     rates.
12.  SPECIAL TRANSPORTATION
     Special transportation required to gain access to a Site shall be supplied
     by Customer. Seller shall, if directed in writing, furnish the special
     transportation and invoice Customer for such services.

<PAGE>

                                   EXHIBIT G

                           TO THE PURCHASE AGREEMENT

                                    BETWEEN

                                    SELLER

                                      AND

                                   CUSTOMER

                                   TRAINING
                                   --------

For purposes of uniformity and brevity, references to Purchase Agreement
("Agreement") or to an Exhibit shall refer to that Agreement to which this
document is Exhibit G and to the other Exhibits to that Agreement. All
definitions set forth in the Agreement shall apply hereto.

1.   OVERVIEW

     Seller's sponsored courses include the SpotLight System Maintenance and
     Operations course as described below. The SpotLight System Maintenance and
     Operation course is offered at Seller's offices in Redmond, WA [***]. Upon
     Customer's request, Seller will provide the SpotLight System Maintenance
     and Operation course at a location chosen by Customer. In the event that
     Seller provides the training at a Customer chosen location, Customer will
     pay the instructor's airfare, per diem expenses and any and all equipment
     shipping charges to provide the class at Customer's chosen location.
     Metawave training courses are copyrighted by Metawave Communications
     Corporation. No reproduction rights for these training courses will be
     granted. Metawave reserves the right to change courses without notifying
     Customer beforehand.

2.   SPOTLIGHT SYSTEM MAINTENANCE AND OPERATION COURSE OBJECTIVE

     SpotLight System Maintenance and Operation is a one day course designed for
     Cellular Technicians, and assumes no prior background with Smart Antenna
     systems. At the successful completion of this course, technicians will be
     certified by Seller to maintain, troubleshoot, and replace Field
     Replaceable Units (FRU) as needed to sustain site operation. The technician
     will also become familiar with the LampLighter user interface, and be able
     to configure and monitor SMUs (Spectrum Management Units) either on-site or
     remotely, view system performance statistics, and perform SpotLight system
     verification. Upon completion of the course, all students will receive a
     SpotLight System Manual, a LampLighter User Guide, copies of the
     presentation materials as site reference material and a course certificate
     of completion.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

                    EXHIBIT H: PRODUCT MAINTENANCE PROGRAM

                           TO THE PURCHASE AGREEMENT

                                    BETWEEN

                   METAWAVE COMMUNICATIONS CORP. ("SELLER")

                                      AND

                       ALLTEL SUPPLY, INC. ("CUSTOMER")

                      Metawave Communications Corporation
                             8700 148th Avenue NE
                             Redmond, WA 98052 USA
                               Tel. 425 702-5600
                               Fax 425 702-5970
                            http://www.metawave.com

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

 This document and the information in it is the proprietary and confidential
    information of Metawave Communications Corporation and is provided by
  Metawave under an agreement of nondisclosure to the Customer for internal
 evaluation purposes only and is protected by applicable copyright and trade
  secret law.  This document may only be disclosed or disseminated to those
      employees of the Customer who have a need to use it for evaluation
     purposes; no other use or disclosure can be made by Customer without
                              Metawave's consent.

                  1998, Metawave Communications  Corporation
                           CONFIDENTIAL PROPRIETARY
--------------------------------------------------------------------------------
<PAGE>

                      METAWAVE COMMUNICATIONS CORPORATION

                          PRODUCT MAINTENANCE PROGRAM

1.   Introduction

     Seller's product maintenance program includes both a Hardware Maintenance
     Program (HMP) and a Software Maintenance Program (SMP). This document
     describes each of the two programs.

2.   Hardware Maintenance Program (HMP)

     Seller repairs its Product(s) down to the Field Replaceable Unit (FRU)
     (refer to Exhibit A for the most current list of FRUs). In this Exhibit H,
     the term hardware refers to the non-Software components making up a FRU.
     The following describes Seller's Hardware Maintenance Program ("HMP"):
     2.1  Term
          2.1.1  SELLER'S HMP IS INCLUDED IN THE PURCHASE PRICE OF EACH PRODUCT
                 PURCHASED BY CUSTOMER AND SHALL EXTEND THROUGHOUT THE DURATION
                 OF THE WARRANTY PERIOD, AS SET FORTH IN THE WARRANTY SECTION OF
                 THE AGREEMENT (THE "INITIAL HMP").  HARDWARE REPAIR SERVICES
                 ARE MADE AVAILABLE TO CUSTOMER FOR A PERIOD OF [***] FROM THE
                 DATE PRODUCT IS SHIPPED FROM SELLER'S FACTORY TO CUSTOMER.
                 FOLLOWING THE EXPIRATION OF THE INITIAL HMP, CUSTOMER HAS A
                 CHOICE OF (I) SUBSCRIBING TO SELLER'S HMP ON AN ANNUAL BASIS
                 PURSUANT TO THE TERMS HEREIN AND AT THE HMP FEES SET FORTH IN
                 EXHIBIT A ("EXTENDED HMP") FOR THE DURATION OF THE TERM OF THE
                 AGREEMENT AND THEREAFTER AT SELLER'S THEN CURRENT HMP FEES, OR
                 (II) HAVING THE PRODUCT REPAIRED ON A TIME-AND-MATERIALS BASIS
                 AT THE REPAIR RATES LISTED IN ANNEX A, SECTION F FOR THE
                 DURATION OF THE TERM OF THE AGREEMENT AND THEREAFTER AT
                 SELLER'S THEN CURRENT REPAIR RATE.
     2.2  Seller shall:
          2.2.1  IN THE EVENT A DEFECT OCCURS, EITHER (I) REPAIR THE DEFECTIVE
                 FRU OR (II) REPLACE SAID FRU WITH A NEW OR REFURBISHED FRU. ANY
                 ITEM REPLACED WILL BE DEEMED TO BE ON AN EXCHANGE BASIS, AND
                 ANY ITEM RETAINED BY SELLER THROUGH REPLACEMENT WILL BECOME THE
                 PROPERTY OF SELLER.
          2.2.2  FRUs THAT HAVE BEEN REPAIRED OR REPLACED WILL BE WARRANTED FOR
                 A PERIOD OF TIME WHICH IS THE LONGER OF (I) [***] FROM THE DATE
                 OF SHIPMENT OF FRU TO CUSTOMER OR (II) [***].
          2.2.3  [***] OF RECEIPT OF A DEFECTIVE FRU FROM CUSTOMER, SHIP A
                 REPAIRED OR REPLACEMENT FRU TO CUSTOMER. EQUIPMENT NOT
                 MANUFACTURED BY SELLER WILL BE REPAIRED OR REPLACED AS PROMPTLY
                 AS ARRANGEMENTS WITH THE MANUFACTURERS OR VENDORS THEREOF
                 PERMIT.
          2.2.4  ISSUE A RETURN MATERIAL AUTHORIZATION ("RMA") NUMBER TO
                 CUSTOMER PRIOR TO CUSTOMER'S RETURN OF THE DEFECTIVE FRU.
          2.2.5  PAY ALL TRANSPORTATION CHARGES FOR THE RETURN OF THE REPAIRED
                 OR REPLACEMENT FRU TO CUSTOMER.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

          2.2.6  PROVIDE TELEPHONE TECHNICAL SUPPORT 24 HOURS A DAY, 7 DAYS A
                 WEEK WITH A TELEPHONE CALL-BACK RESPONSE TIME TO CUSTOMER NOT
                 TO EXCEED ONE HOUR FROM CUSTOMER'S CALL TO CUSTOMER SUPPORT.
     2.3  Customer shall:
          2.3.1  CONTACT SELLER VIA TELEPHONE, E-MAIL OR FAX TO OBTAIN AN RMA
                 PRIOR TO RETURNING A DEFECTIVE FRU.
          2.3.2  PACKAGE FRU IN A MANNER TO PREVENT DAMAGE DURING SHIPMENT AND
                 CLEARLY IDENTIFY RMA NUMBER ON OUTSIDE OF PACKAGE.
          2.3.3  SHIP THE DEFECTIVE FRU TO THE ADDRESS SHOWN IN ANNEX A TO THIS
                  EXHIBIT.
          2.3.4  PAY ALL COSTS OF TRANSPORTATION FOR SENDING THE DEFECTIVE FRU
                 TO SELLER.
          2.3.5  IF SELLER HAS SHIPPED A REPLACEMENT FRU IN ADVANCE OF CUSTOMER
                 RETURNING A DEFECTIVE FRU TO SELLER, CUSTOMER AGREES TO INSURE
                 AND PROVIDE CONFIRMATION OF SHIPMENT OF SUCH DEFECTIVE FRU,
                 FREIGHT PREPAID, TO SELLER (AT ADDRESS SHOWN IN ANNEX A TO THIS
                 EXHIBIT) WITHIN 5 DAYS OF SELLER'S SHIPMENT OF REPLACEMENT FRU.
                 CUSTOMER AGREES TO PROMPTLY PAY SELLER'S INVOICE FOR THE
                 REPLACEMENT FRU (BILLED AT THE THEN CURRENT FRU PRICE) SHIPPED
                 TO CUSTOMER IF THE DEFECTIVE FRU IS NOT RETURNED TO SELLER
                 WITHIN THE SPECIFIED 5 DAY PERIOD.
          2.3.6  BE RESPONSIBLE FOR THE INITIAL IDENTIFICATION OF PRODUCT
                 PROBLEMS DOWN TO THE FRU LEVEL AND FOR THE REMOVAL, SHIPMENT
                 AND RE-INSTALLATION OF THE MALFUNCTIONING FRU.
     2.4  On-Site Repair
             On-Site Repair can be performed at an additional charge.  Such
             charge will be quoted to Customer and agreed upon in writing before
             dispatch of personnel.
     2.5  Service Limitations
          2.5.1  SELLER SHALL HAVE NO RESPONSIBILITY TO REPAIR OR REPLACE FRUS
                 WHICH HAVE BEEN REPAIRED IN AN UNAUTHORIZED MANNER OR WHICH
                 HAVE HAD THE BARCODE, SERIAL NUMBER, OR OTHER IDENTIFYING MARK
                 MODIFIED, REMOVED OR OBLITERATED THROUGH ACTION OR INACTION OF
                 CUSTOMER.
          2.5.2  IN THE EVENT THAT CUSTOMER SENDS A FRU TO SELLER FOR WHICH NO
                 DEFECTS OR FAILURES CAN BE FOUND, SELLER MAY INVOICE CUSTOMER
                 AT THE THEN CURRENT FEE FOR THE SERVICES RENDERED DURING THE
                 EVALUATION PROCESS.
3.   Software Maintenance Program (SMP)
     The following describes Seller's SMP:
     3.1  Definitions
               Terms which are capitalized have the meanings set forth below or,
               absent definition herein, as contained in the Agreement.

               Feature         an innovation or performance improvement to
                               Software that is made available to all users of
                               the current Software release. Features are
                               licensed to Customer individually and may be at
                               additional cost.

<PAGE>

               Major Release   indicates a new version of Software that adds new
                               Features (excluding Optional Features) or major
                               enhancements to the currently existing release of
                               Software.
               Point Release   indicates a modification to Software resulting
                               from planned revisions to the current release, or
                               corrections and/or fixes to the current release
                               of Software.

               Software Patch  Software that corrects or removes a reproducible
                               anomaly or "bug" in an existing Major Release.

     3.2  Term
          3.2.1  SELLER'S SMP IS INCLUDED IN THE PURCHASE PRICE OF EACH PRODUCT
                 PURCHASED BY CUSTOMER AND SHALL EXTEND THROUGHOUT THE DURATION
                 OF THE WARRANTY PERIOD, AS SET FORTH IN THE WARRANTY SECTION OF
                 THE AGREEMENT (THE "INITIAL SMP TERM"). THEREAFTER, SMP IS
                 PROVIDED BY SELLER TO CUSTOMER PURSUANT TO THE TERMS HEREIN AND
                 IS INCLUDED IN THE SMP FEES SET FORTH IN EXHIBIT A FOR A PERIOD
                 OF 12 MONTHS. ANY SOFTWARE PROVIDED TO CUSTOMER DURING THE TERM
                 OF THE SMP WILL BE PROVIDED PURSUANT TO SELLER'S SOFTWARE
                 LICENSE AS SET FORTH IN THE SOFTWARE LICENSE EXHIBIT OF THE
                 PURCHASE AGREEMENT.
     3.3  Scope
          3.3.1  DURING THE TERM OF SMP, ALL MAJOR RELEASES, POINT RELEASES,
                 SOFTWARE PATCHES AND STANDARD FEATURES MADE GENERALLY AVAILABLE
                 BY SELLER SHALL BE AVAILABLE TO CUSTOMER AT NO ADDITIONAL
                 CHARGE. CUSTOMER SHALL INSTALL SUCH SOFTWARE PROMPTLY UPON
                 RECEIPT.
          3.3.2  OPTIONAL FEATURES AND CERTAIN SIGNIFICANT ENHANCEMENTS SHALL BE
                 MADE AVAILABLE TO CUSTOMER AT AN ADDITIONAL CHARGE. [***]
          3.3.3  CERTAIN OPTIONAL FEATURES SHALL BE SOLD ON A PER-UNIT BASIS AND
                 MAY HAVE PRICE LEVELS THAT REFLECT UNIT CAPACITY.
          3.3.4  CUSTOMER WILL BE RESPONSIBLE FOR PROBLEM IDENTIFICATION OF
                 REPRODUCIBLE SOFTWARE MALFUNCTIONS. IN THE EVENT OF ANY SUCH
                 SOFTWARE MALFUNCTION, CUSTOMER SHALL NOTIFY SELLER PROMPTLY OF
                 THE FAILURE
          3.3.5  SELLER SHALL PROVIDE, AT A SELLER AUTHORIZED REPAIR DEPOT, SUCH
                 THROUGH CALLING SELLER'S CUSTOMER SUPPORT.
                 SERVICE AS IS NECESSARY TO CORRECT SOFTWARE DEFECTS IN
                 ACCORDANCE WITH THE APPLICABLE DOCUMENTATION. SUCH SERVICE WILL
                 BE PROVIDED BY SELLER SEVERITY OF THE PROBLEM.
          3.3.6  AS SOON AS IS POSSIBLE AND ON A PRIORITY BASIS ACCORDING TO THE
                 SELLER SHALL PROVIDE TELEPHONE TECHNICAL SUPPORT 24-HOUR A DAY,
                 7 DAYS A WEEK WITH A TELEPHONE CALL-BACK RESPONSE TIME TO
                 CUSTOMER NOT TO EXCEED ONE HOUR FROM CUSTOMER'S CALL TO
                 CUSTOMER SUPPORT. ADDITIONALLY, SELLER SHALL PROVIDE TELEPHONE
                 ASSISTANCE AND GUIDANCE DURING THE INSTALLATION OF NEW
                 SOFTWARE.
          3.3.7  SELLER SHALL SUPPORT THE CURRENT MAJOR RELEASE AND ASSOCIATED
                 POINT RELEASES AND FEATURES AS WELL AS THE IMMEDIATELY
                 PRECEDING MAJOR RELEASE AND ASSOCIATED POINT RELEASES AND
                 FEATURES.

[***] CERTAIN INFORMATION ON THIS PAGE(S) HAS BEEN OMITTED AND FILED SEPARATELY
      WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
      RESPECT TO THE OMITTED PORTIONS.
<PAGE>

          3.3.8  SELLER SHALL HAVE NO OBLIGATION TO SUPPORT ANY SOFTWARE WHICH
                 IS OLDER THAN THE IMMEDIATELY PRECEDING MAJOR RELEASE. HOWEVER,
                 ANY SUPPORT PROVIDED BY SELLER FOR SOFTWARE OLDER THAN THE
                 IMMEDIATELY PRECEDING MAJOR RELEASE AND ASSOCIATED POINT
                 RELEASES AND FEATURES SHALL BE ON A TIME AND MATERIAL BASIS. AN
                 OPEN PURCHASE ORDER WILL BE REQUIRED BEFORE ANY SUCH SERVICES
                 ARE RENDERED.
          3.3.9  SELLER SHALL PERFORM ITS SERVICES HEREUNDER IN A GOOD
                 WORKMANLIKE MANNER AND IN ACCORDANCE WITH INDUSTRY STANDARDS
                 WHERE APPLICABLE.

<PAGE>

     ANNEX A: PROCEDURES FOR METAWAVE'S HARDWARE
                MAINTENANCE PROGRAM

     A.   METAWAVE'S CUSTOMER SUPPORT

          Customer Support can be reached by call the following numbers:

          Domestic phone:  888-642-2455
          International phone: 425-702-6550

     B.   RETURN MATERIAL AUTHORIZATION (RMA):

          Customer must contact Customer Support via telephone, e-mail or fax to
          obtain a Return Material Authorization (RMA) number. Seller may return
          shipments without a RMA number to the Customer unrepaired and at
          Customer's cost.

          The RMA number must be clearly written on the outside of the package.

          A RMA number will not be issued until a purchase order is provided for
          the repair price for those items not covered under warranty.

     C.   RETURN ADDRESS:

          All Field Replaceable Units (FRUs) must be shipped to:

          Metawave Communications Corporation
          8700 148th Avenue N.E.
          Redmond, WA 98052 USA

     D.   PACKING INSTRUCTIONS:

          Customer must pack all returned equipment in a manner no less
          protective to such equipment than the manner in which Seller packages
          similar equipment.

     E.   REPAIR PURCHASE ORDERS:

          Repair purchase orders are required in the following instances:

          1.   When Customer requests Emergency Expedite Service.

          2.   When Customer returns our of warranty FRUs for repair.

          3.   When Seller sends pre-exchange FRU to Customer prior to the
               defective FRU being received by Seller.

          Under these circumstances, a facsimile copy of the purchase order may
          be transmitted to be followed up by a confirming hard copy in the
          mail.  The terms and conditions of the Agreement between Seller and
          the Customer shall prevail notwithstanding any variance with the terms
          and conditions of any purchase orders submitted by Customer.

<PAGE>

     F.   PRICING AND INVOICING:

          Emergency Expedite Request (Under Initial HMP or Extended HMP):
          ---------------------------------------------------------------
          Seller does not charge an Emergency Expedite Fee for FRUs covered
          under the Initial HMP or Extended HMP..

          Emergency Expedite Request (Under Time-and -Materials):
          ------------------------------------------------------
          Seller charges an Emergency Expedite Fee of $300 per FRU (plus the
          standard time-and-materials repair rates shown below) plus freight for
          emergency service for FRUs not covered under the Initial HMP or
          Extended HMP.

          Repair and Return Shipment of FRUs (Under Initial HMP or Extended
          ----------------- -----------------------------------------------
          HMP):
          ---
          Seller does not charge for the repair or return shipment of FRUs
          covered under the Initial or Extended HMP.

          Time-and-Material Repair Services (not covered under Initial HMP or
          -------------------------------------------------------------------
          Extended HMP):
          -------------
          All repairs not covered under either the Initial HMP or Extended HMP
          will be calculated on a time-and-materials basis at $100 for the first
          hour and $50 per hour for each additional hour thereafter. If the
          estimated cost to repair the defective FRU exceeds 50% of the price of
          a new FRU, Seller will call Customer to inform them prior to repairing
          defective FRU.

          Loaner Fees:
          -----------
          Seller charges a loaner fee, not to exceed $200 per FRU, when Customer
          requests a loaner FRU in support of FRUs not covered under either
          Initial HMP or Extended HMP.

          Invoices:
          --------
          Invoices are payable in accordance with the terms of the Agreement
          between Seller and Customer.

     G.   EMERGENCY EXPEDITE SERVICE:

          Within 24 hours of notification from Customer of an Emergency, Seller
          will ship a replacement FRU.  Customer must either provide Seller with
          a new repair purchase order (a facsimile copy of the purchase order
          may be transmitted to be followed up by a confirming hard copy in the
          mail) or have already provided Seller with a blanket purchase order if
          an out of warranty item (s).

     H    FREIGHT:

          Initial HMP or Extended HMP:
          ----------------------------
          Customer shall ship the FRU to Seller on a prepaid basis and Seller
          will return the FRU to Customer on a prepaid basis, not billing
          Customer for return freight.

          Repair Services on a Time-and-Material basis:
          --------------------------------------------
          Customer shall ship the FRU to Seller on a prepaid basis and Seller
          will prepay and invoice Customer for return freight.

     I.   DUTIES AND TAXES:

          All duties, customs clearance fees and any and all taxes will be the
          responsibility of the Customer.
<PAGE>

     J.   NON-COMPLIANCE:

          Failure to comply with any of the procedures may result in delay or
          non-delivery of the FRUs.

     K.   CONFLICTING TERMS:

          In the event that the terms contained herein conflict with the terms
          of the Agreement between Seller and Customer, the terms of the
          Agreement shall govern.

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