Document:

Exhibit 10.1

                          SECURITIES PURCHASE AGREEMENT

         SECURITIES PURCHASE AGREEMENT (this  "AGREEMENT"),  dated as of May 28,
2003, between P-Com,  Inc., a corporation  organized under the laws of the State
of  Delaware  (the  "COMPANY"),  and  each of the  purchasers  (individually,  a
"PURCHASER" and collectively the  "PURCHASERS") set forth on the execution pages
hereof (the "EXECUTION PAGES," and each an "EXECUTION PAGE").

         WHEREAS:

     A. The  Company  and each  Purchaser  are  executing  and  delivering  this
Agreement in reliance upon the exemption from securities  registration  afforded
by the provisions of Regulation D ("REGULATION D"), as promulgated by the United
States  Securities and Exchange  Commission (the "SEC") under the Securities Act
of 1933, as amended (the "SECURITIES ACT").

     B. The Company  desires to issue and sell,  and each  Purchaser  desires to
purchase,  upon  the  terms  and  conditions  stated  in this  Agreement,  (i) a
convertible   promissory  note,  in  the  form  attached  hereto  as  EXHIBIT  A
(collectively,  the  "NOTES"),  in the  principal  face amount set forth on such
Purchaser's  Execution Page, which Notes shall be convertible into shares of the
Company's common stock,  par value $0.0001 per share (the "COMMON  STOCK"),  or,
under certain circumstances, certain other securities of the Corporation, on the
terms set forth therein,  (ii) a warrant, in the form attached hereto as EXHIBIT
B  (collectively,  the "SERIES A WARRANTS"),  to acquire the number of shares of
Common Stock  identified  as the "Series A Warrant  Shares" on such  Purchaser's
Execution  Page,  (iii) a  warrant,  in the form  attached  hereto as  EXHIBIT C
(collectively,  the "SERIES A-1  WARRANTS"),  to acquire the number of shares of
Common Stock  identified  as the "Series A Warrant  Shares" on such  Purchaser's
Execution  Page,  (iv) a  warrant,  in the form  attached  hereto  as  EXHIBIT D
(collectively,  the  "SERIES B  WARRANTS"),  to acquire  the number of shares of
Common Stock  identified  as the "Series B Warrant  Shares" on such  Purchaser's
Execution  Page,  and (v) a warrant,  in the form  attached  hereto as EXHIBIT E
(collectively,  the  "SERIES  B-1  WARRANTS,"  and,  together  with the Series A
Warrants, the Series A-1 Warrants and the Series B Warrants, the "WARRANTS"), to
acquire the number of shares of Common Stock identified as the "Series B Warrant
Shares" on such Purchaser's  Execution Page. The shares of Common Stock issuable
upon conversion of or otherwise  pursuant to the Notes are referred to herein as
the "CONVERSION SHARES" and the shares of Common Stock issuable upon exercise of
or  otherwise  pursuant to the  Warrants  are referred to herein as the "WARRANT
SHARES." The Notes, the Warrants,  the Conversion  Shares and the Warrant Shares
are  collectively  referred to herein as the  "SECURITIES"  and each of them are
individually referred to herein as a "SECURITY."

     C. In connection with the Closing  pursuant to this Agreement,  the parties
hereto are executing and delivering a Registration Rights Agreement, in the form
attached hereto as EXHIBIT F (the "REGISTRATION RIGHTS AGREEMENT"),  pursuant to
which the Company has agreed to provide  certain  registration  rights under the
Securities  Act  and the  rules  and  regulations  promulgated  thereunder,  and
applicable state securities laws.

<PAGE>

     D. In  connection  with the Closing (as  defined  herein)  pursuant to this
Agreement,  the Company is executing and delivering a Security Agreement, in the
form attached hereto as EXHIBIT G (together with any other document securing the
Notes and the subordination  agreement relating to the Notes in favor of Silicon
Valley Bank, the "SECURITY  DOCUMENTS"),  in favor of the  Collateral  Agent (as
defined herein) for the benefit of all of the Purchasers,  pursuant to which the
Company  has agreed to grant a security  interest in all of its  properties  and
assets in order to secure its obligations under the Notes.  This Agreement,  the
Notes,  the  Warrants,  the  Registration  Rights  Agreement  and  the  Security
Documents are collectively referred to herein as the "TRANSACTION DOCUMENTS."

     NOW,  THEREFORE,  in  consideration  of the premises  and mutual  covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which are hereby  acknowledged,  the Company and the  Purchasers
hereby agree as follows:

1. PURCHASE AND SALE OF SECURITIES.

     (a) PURCHASE AND SALE OF  SECURITIES.  Subject to the terms and  conditions
hereof,  at the Closing (as defined in Section  1(b) below),  the Company  shall
issue and sell to each Purchaser, and each Purchaser, severally and not jointly,
shall  purchase from the Company,  (i) a Note in the  principal  face amount set
forth on such Purchaser's Execution Page, (ii) a Series A Warrant to acquire the
number of shares of Common Stock  identified as the "Series A Warrant Shares" on
such  Purchaser's  Execution  Page,  (iii) a Series A-1  Warrant to acquire  the
number of shares of Common Stock  identified as the "Series A Warrant Shares" on
such  Purchaser's  Execution Page, (iv) a Series B Warrant to acquire the number
of shares of Common Stock  identified  as the "Series B Warrant  Shares" on such
Purchaser's  Execution  Page, and (v) a Series B-1 Warrant to acquire the number
of shares of Common Stock  identified  as the "Series B Warrant  Shares" on such
Purchaser's  Execution Page, in consideration  for the payment by such Purchaser
of a purchase price equal to the principal face amount of such  Purchaser's Note
(as to each Purchaser, the "PURCHASE PRICE").

     (b) THE CLOSING.  Subject to the satisfaction (or waiver) of the conditions
set  forth  in  Sections  6  and  7  below,  the  closing  of  the  transactions
contemplated  hereby  (the  "CLOSING")  shall take  place at the  offices of the
Company,  on the date hereof,  or at such other time or place as the Company and
the Purchasers  may mutually agree (such date is hereinafter  referred to as the
"CLOSING DATE").

     (c) SUBSEQUENT  PURCHASE AND SALE OF SECURITIES.  The Company may issue and
sell Notes for up to Seven Hundred Fifty  Thousand  Dollars  ($750,000),  in the
aggregate,  upon the same terms and conditions  herein. In the event of the sale
of any  additional  Notes  hereunder,  the  Company  shall  issue  and sell such
additional  Notes,  Series A Warrant  Shares and Series B Warrant  Shares on the
same terms and conditions set forth in the Transaction Documents dated as of May
28, 2003. As the result of any such additional  issuance,  the term,  "Note," in
the applicable Transaction Documents shall include any such additional issuance.
Any such Purchaser shall become a party to the  Transaction  Documents and shall
have the rights and obligations hereunder and thereunder.

                                      -2-

<PAGE>

     2. PURCHASER'S  REPRESENTATIONS AND WARRANTIES.  Each Purchaser  severally,
but not jointly, represents and warrants to the Company as follows:

     (a) PURCHASE FOR OWN ACCOUNT,  ETC..  Such Purchaser is acquiring the Notes
and the  Warrants for such  Purchaser's  own account and not with a present view
towards the public sale or distribution  thereof,  except pursuant to sales that
are exempt from the registration requirements of the Securities Act and/or sales
registered  under the Securities Act. Such Purchaser  understands that Purchaser
must  bear  the  economic  risk  of this  investment  indefinitely,  unless  the
Securities  are  registered  pursuant to the  Securities  Act and any applicable
state  securities  or blue sky laws or an exemption  from such  registration  is
available,  and that the Company has no present  intention  of  registering  the
resale of any such Securities  other than as  contemplated  in the  Registration
Rights Agreement. Notwithstanding anything in this Section 2(a) to the contrary,
by making the  representations  herein, the Purchaser does not agree to hold the
Securities  for any minimum or other  specific  term and  reserves  the right to
dispose  of the  Securities  at any time in  accordance  with or  pursuant  to a
registration statement or an exemption from the registration  requirements under
the Securities Act.

     (b) ACCREDITED INVESTOR STATUS. Such Purchaser is an "ACCREDITED  INVESTOR"
as that term is defined in Rule 501(a) of Regulation D under the Securities Act.

     (c) RELIANCE ON EXEMPTIONS.  Such Purchaser understands that the Securities
are  being  offered  and  sold to  such  Purchaser  in  reliance  upon  specific
exemptions from the registration requirements of United States federal and state
securities  laws and that the Company is relying upon the truth and accuracy of,
and  such  Purchaser's   compliance  with,  the   representations,   warranties,
agreements,  acknowledgments  and  understandings  of such  Purchaser  set forth
herein  in  order to  determine  the  availability  of such  exemptions  and the
eligibility of such Purchaser to acquire the Securities.

     (d) INFORMATION. Such Purchaser or its counsel, if any, have been furnished
all materials  relating to the business,  finances and operations of the Company
and materials  relating to the offer and sale of the Securities  which have been
specifically requested by such Purchaser or its counsel.  Neither such inquiries
nor any other investigation conducted by such Purchaser or its counsel or any of
its representatives shall modify, amend or affect such Purchaser's right to rely
on the Company's  representations  and warranties  contained in Section 3 below.
Such Purchaser  understands that such  Purchaser's  investment in the Securities
involves a high degree of risk.

     (e) GOVERNMENTAL  REVIEW. Such Purchaser  understands that no United States
federal  or state  agency or any other  government  or  governmental  agency has
passed upon or made any recommendation or endorsement of the Securities.

     (f)  TRANSFER  OR RESALE.  Such  Purchaser  understands  that (i) except as
provided  in the  Registration  Rights  Agreement,  the  sale or  resale  of the
Securities have not been and are not being  registered  under the Securities Act
or any state securities  laws, and the Securities may not be transferred  unless
(A)  the  transfer  is  made  pursuant  to  and  as set  forth  in an  effective
registration statement under the Securities Act covering the Securities;  or (B)
such Purchaser  shall have delivered to the Company an opinion of counsel (which
opinion shall be in form,

                                       -3-
<PAGE>

substance   and  scope   customary   for  opinions  of  counsel  in   comparable
transactions) to the effect that the Securities to be sold or transferred may be
sold or transferred pursuant to an exemption from such registration; or (C) sold
under and in compliance with Rule 144 promulgated under the Securities Act (or a
successor  rule) ("RULE 144");  or (D) sold or  transferred  in accordance  with
applicable  securities laws to an affiliate of such Purchaser who agrees to sell
or otherwise  transfer the Securities  only in accordance with the provisions of
this  Section  2(f) and who is an  Accredited  Investor;  and (ii)  neither  the
Company nor any other person is under any obligation to register such Securities
under the  Securities Act or any state  securities  laws (other than pursuant to
the Registration  Rights Agreement).  Notwithstanding  the foregoing or anything
else  contained  herein  to the  contrary,  the  Securities  may be  pledged  as
collateral  in  connection  with a bona fide  margin  account  or other  lending
arrangement,  provided such pledge is consistent with applicable laws, rules and
regulations.

     (g) LEGENDS.  Such  Purchaser  understands  that the  certificates  for the
Warrants and, until such time as the  Conversion  Shares and Warrant Shares have
been  registered  under the Securities Act (including  registration  pursuant to
Rule 416  thereunder)  or  otherwise  may be sold by such  Purchaser  under Rule
144(k), the certificates for the Conversion Shares and Warrant Shares shall bear
a restrictive legend in substantially the following form:

                  The securities  represented by this  certificate have not been
                  registered  under the Securities  Act of 1933, as amended,  or
                  the  securities  laws of any state of the United  States or in
                  any other jurisdiction.  The securities represented hereby may
                  not be  offered,  sold or  transferred  in the  absence  of an
                  effective  registration  statement  for the  securities  under
                  applicable securities laws unless offered, sold or transferred
                  pursuant  to an  available  exemption  from  the  registration
                  requirements of those laws.

     The  Company  agrees  that it shall,  immediately  prior to a  registration
statement  covering the  Securities  being  declared  effective,  deliver to its
transfer  agent an  opinion  letter of  counsel,  opining  that at any time such
registration  statement  is  effective,  the  transfer  agent  shall  issue,  in
connection  with the  issuance  of the  Conversion  Shares and  Warrant  Shares,
certificates  representing such Conversion Shares and Warrant Shares without the
restrictive legend above, provided such Conversion Shares and Warrant Shares are
to be sold pursuant to the prospectus contained in such registration  statement.
Upon receipt of such  opinion,  the Company  shall cause the  transfer  agent to
confirm,  for the benefit of the holders,  that no further opinion of counsel is
required  at the time of transfer  in order to issue such  shares  without  such
restrictive legend.

     The legend set forth above  shall be removed and the Company  shall issue a
certificate  without such legend to the holder of any Security  upon which it is
stamped, if (unless otherwise required by state securities laws) (i) the sale of
such Security is registered  under the Securities  Act  (including  registration
pursuant to Rule 416 thereunder);  (ii) such holder provides the Company with an
opinion of counsel,  in form,  substance  and scope  customary  for  opinions of
counsel in comparable transactions, to the effect that a public sale or transfer
of such Security may be made without  registration  under the Securities Act; or
(iii) such holder  provides the Company  with  reasonable  assurances  that such
Security  can be sold under Rule 144.  In the event the above  legend is removed
from any Security and thereafter the  effectiveness of a

                                       -4-
<PAGE>

registration  statement  covering  such  Security  is  suspended  or the Company
determines  that a  supplement  or amendment  thereto is required by  applicable
securities  laws, then upon reasonable  advance written notice to such Purchaser
the  Company may require  that the above  legend be placed on any such  Security
that cannot then be sold  pursuant to an  effective  registration  statement  or
under Rule 144 and such  Purchaser  shall  cooperate in the  replacement of such
legend.  Such legend shall thereafter be removed when such Security may again be
sold pursuant to an effective registration statement or under Rule 144.

     (h) AUTHORIZATION;  ENFORCEMENT. This Agreement and the Registration Rights
Agreement  have been duly and validly  authorized,  executed  and  delivered  on
behalf of such Purchaser and is a valid and binding  agreement of such Purchaser
enforceable against such Purchaser in accordance with its terms.

     (i) RESIDENCY.  Such Purchaser is a resident of the  jurisdiction set forth
under such  Purchaser's  name on the  Execution  Page  hereto  executed  by such
Purchaser.

         The Purchasers'  representations  and warranties made in this Article 2
are  made  solely  for  the  purpose  of  permitting   the  Company  to  make  a
determination that the transactions  contemplated  hereby comply with applicable
U.S.  federal  and  state  securities  laws and not for any other  purpose.  The
Company  may not  rely on such  representations  and  warranties  for any  other
purpose.

     3.  REPRESENTATIONS  AND WARRANTIES OF THE COMPANY.  Except as set forth in
the  Company's  Select SEC  Documents (as defined in Section 3(f) below) or on a
Disclosure  Schedule  executed and delivered by the Company to the Purchasers at
the Closing (the "DISCLOSURE SCHEDULE"),  the Company represents and warrants to
each Purchaser as follows:

     (a) ORGANIZATION AND  QUALIFICATION.  The Company and each of its direct or
indirect subsidiaries  (collectively,  the "SUBSIDIARIES") is a corporation duly
organized and existing in good standing  under the laws of the  jurisdiction  in
which  it is  incorporated,  and has the  requisite  corporate  power to own its
properties and to carry on its business as now being conducted.  The Company and
each of its  Subsidiaries  is duly  qualified  as a  foreign  corporation  to do
business and is in good  standing in every  jurisdiction  in which the nature of
the business  conducted by it makes such  qualification  necessary and where the
failure so to qualify has had or could reasonably be expected to have a Material
Adverse Effect.  "MATERIAL  ADVERSE EFFECT" means any material adverse effect on
(i) the  Securities,  (ii) the ability of the Company to perform its obligations
hereunder  or under  the other  Transaction  Documents  or (iii)  the  business,
operations,  properties, prospects, financial condition or results of operations
of the Company and its Subsidiaries, taken as a whole.

     (b) AUTHORIZATION; ENFORCEMENT. (i) The Company has the requisite corporate
power and  authority  to enter  into and  perform  its  obligations  under  this
Agreement and the other Transaction  Documents,  to issue and sell the Notes and
Warrants in accordance  with the terms hereof,  to issue the  Conversion  Shares
upon conversion of the Notes in accordance with the terms of such Notes (subject
to obtaining the Authorized  Stock Approval  contemplated by Section 4(p) below)
and to issue the Warrant Shares upon exercise of the Warrants in accordance with
the terms of such Warrants; (ii) the execution, delivery and performance of this
Agreement

                                       -5-
<PAGE>

and the other Transaction Documents by the Company and the consummation by it of
the transactions contemplated hereby and thereby (including, without limitation,
the issuance of the Notes and Warrants  and the  issuance  and  reservation  for
issuance of the Conversion  Shares  (subject to obtaining the  Authorized  Stock
Approval  contemplated by Section 4(p) below) and Warrant Shares) have been duly
authorized  by the  Company's  Board of  Directors  and no  further  consent  or
authorization  of the Company,  its Board of Directors,  or any committee of the
Board of Directors is required, and (iii) this Agreement constitutes,  and, upon
execution and delivery by the Company of the other Transaction  Documents,  such
agreements  will  constitute,  valid  and  binding  obligations  of the  Company
enforceable  against the Company in  accordance  with their  terms.  Neither the
execution, delivery or performance by the Company of this Agreement or the other
Transaction   Documents  nor  the   consummation  by  it  of  the   transactions
contemplated hereby or thereby (including,  without limitation,  the issuance of
the Notes or  Warrants  or the  issuance  or  reservation  for  issuance  of the
Conversion  Shares or Warrant Shares)  requires any consent or  authorization of
the  Company's   stockholders,   except  for  the   Authorized   Stock  Approval
contemplated by Section 4(p) below.

     (c)  CAPITALIZATION.  The  capitalization  of the  Company  as of the  date
hereof,  including the authorized capital stock, the number of shares issued and
outstanding, the number of shares issuable and reserved for issuance pursuant to
the Company's stock option plans, the number of shares issuable and reserved for
issuance pursuant to securities (other than the Notes and Warrants)  exercisable
or  exchangeable  for, or convertible  into, any shares of capital stock and the
number of shares to be reserved for issuance  upon  conversion  of the Notes and
exercise  of the  Warrants  is set  forth  in  SECTION  3(C)  of the  Disclosure
Schedule.  All of such  outstanding  shares of capital  stock have been, or upon
issuance in accordance with the terms of any such warrants, options or preferred
stock,  will be, validly  issued,  fully paid and  non-assessable.  No shares of
capital stock of the Company  (including the  Conversion  Shares and the Warrant
Shares)  are subject to  preemptive  rights or any other  similar  rights of the
stockholders  of the  Company  or any  liens  or  encumbrances.  Except  for the
Securities  and as set forth in SECTION 3(C) of the Disclosure  Schedule,  as of
the date of this  Agreement,  (i) there are no  outstanding  options,  warrants,
scrip, rights to subscribe to, calls or commitments of any character  whatsoever
relating  to,  or  securities  or  rights  convertible  into or  exercisable  or
exchangeable  for,  any  shares of  capital  stock of the  Company or any of its
Subsidiaries, or arrangements by which the Company or any of its Subsidiaries is
or may become bound to issue  additional  shares of capital stock of the Company
or  any of  its  Subsidiaries,  nor  are  any  such  issuances  or  arrangements
contemplated,  and (ii) there are no agreements or arrangements  under which the
Company or any of its  Subsidiaries  is obligated to register the sale of any of
its or their  securities  under the Securities Act (other than the  Registration
Rights Agreement). SECTION 3(C) of the Disclosure Schedule sets forth all of the
Company issued  securities or  instruments  containing  antidilution  or similar
provisions that will be triggered by, and all of the resulting  adjustments that
will be made to such  securities and instruments as a result of, the issuance of
the Securities in accordance with the terms of this Agreement,  the Notes or the
Warrants. The Company has furnished to the Purchasers true and correct copies of
the  Company's  Certificate  of  Incorporation  as in effect on the date  hereof
("CERTIFICATE OF INCORPORATION"),  the Company's Bylaws as in effect on the date
hereof  (the  "Bylaws"),  and all other  instruments  and  agreements  governing
securities  convertible into or exercisable or exchangeable for capital stock of
the Company.

                                       -6-
<PAGE>

     (d) ISSUANCE OF SHARES.  The Notes and Warrants  are duly  authorized  and,
upon issuance in accordance  with the terms of this  Agreement,  will be validly
issued  and free from all taxes,  liens,  claims and  encumbrances  (other  than
restrictions  on transfer  contained in this Agreement or the Notes or Warrants)
and will not be subject to preemptive  rights,  rights of first refusal or other
similar  rights of  stockholders  of the  Company  and will not impose  personal
liability on the holders  thereof.  Upon obtaining the Authorized Stock Approval
contemplated  by  Section  4(p)  below,  the  Conversion  Shares  shall  be duly
authorized  and reserved for  issuance,  and,  upon  conversion  of the Notes in
accordance  with the terms  thereof,  will be  validly  issued,  fully  paid and
non-assessable,  and free from all taxes,  liens, claims and encumbrances (other
than  restrictions  on transfer  contained  in this  Agreement)  and will not be
subject to preemptive rights, rights of first refusal or other similar rights of
stockholders  of the Company  and will not impose  personal  liability  upon the
holder  thereof.  The  Warrant  Shares  are duly  authorized  and  reserved  for
issuance,  and,  upon  exercise  of the  Warrants in  accordance  with the terms
thereof,  will be validly issued,  fully paid and non-assessable,  and free from
all taxes,  liens,  claims and encumbrances (other than restrictions on transfer
contained  in this  Agreement)  and will not be  subject to  preemptive  rights,
rights of first refusal or other similar rights of  stockholders  of the Company
and will not impose personal liability upon the holder thereof.

     (e) NO CONFLICTS. The execution, delivery and performance of this Agreement
and the other  Transaction  Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including,  without
limitation,  the issuance and  reservation for issuance,  as applicable,  of the
Notes, Warrants,  Conversion Shares and Warrant Shares) will not (i) result in a
violation of the Certificate of  Incorporation  or Bylaws or (ii) conflict with,
or  constitute  a default (or an event that with notice or lapse of time or both
would  become a default)  under,  or give to others  any rights of  termination,
amendment  (including,  without limitation,  the triggering of any anti-dilution
provisions),  acceleration  or  cancellation  of, any  agreement,  indenture  or
instrument to which the Company or any of its Subsidiaries is a party, or result
in a  violation  of  any  law,  rule,  regulation,  order,  judgment  or  decree
(including  United States federal and state  securities laws and regulations and
rules or regulations of any  self-regulatory  organizations  to which either the
Company or its securities  are subject)  applicable to the Company or any of its
Subsidiaries  or by which any  property  or asset of the  Company  or any of its
Subsidiaries is bound or affected (except, with respect to clause (ii), for such
conflicts, defaults, terminations, amendments, accelerations,  cancellations and
violations  that have not had and  could not  reasonably  be  expected  to have,
individually  or in the  aggregate,  a Material  Adverse  Effect).  Neither  the
Company  nor any of its  Subsidiaries  is in  violation  of its  Certificate  of
Incorporation,  Bylaws or other organizational documents and neither the Company
nor any of its Subsidiaries is in default (and no event has occurred which, with
notice  or  lapse  of  time  or  both,  would  put  the  Company  or  any of its
Subsidiaries in default)  under,  nor has there occurred any event giving others
(with  notice or lapse of time or both) any  rights of  termination,  amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any of its Subsidiaries is a party. The businesses of the Company
and its Subsidiaries are not being conducted, and shall not be conducted so long
as a Purchaser  owns any of the Notes,  in  violation  of any law,  ordinance or
regulation  of any  governmental  entity,  except for  possible  violations  the
sanctions for which either singly or in the aggregate have not had and could not
reasonably be expected to have a Material  Adverse  Effect.  The Company and its
Subsidiaries possess all certificates,  authorizations and permits issued by the
appropriate federal,  state or foreign regulatory authorities which are material
to conduct its business, and

                                       -7-
<PAGE>

neither the Company nor any of its  Subsidiaries has received any written notice
of any  proceeding  relating  to the  revocation  or  modification  of any  such
certificate,  authorization  or permit.  The Company and its board of  directors
have taken all necessary  action,  if any, in order to render  inapplicable  any
control share  acquisition,  business  combination,  poison pill  (including any
distribution under a rights agreement) or other similar anti-takeover  provision
under  its  Certificate  of  Incorporation  or  the  laws  of the  state  of its
incorporation  which is or could become applicable to the Purchasers as a result
of  the  transactions   contemplated  by  this  Agreement,   including   without
limitation, the Company's issuance of the Securities and any and all Purchaser's
ownership of the  Securities or the  Purchaser's  ownership of the Common Stock.
Except as  specifically  contemplated  by this  Agreement,  the  Company  is not
required to obtain any consent, approval, authorization or order of, or make any
filing or registration with, any court or governmental  agency or any regulatory
or self regulatory agency in order for it to execute,  deliver or perform any of
its obligations under this Agreement or the other Transaction Documents, in each
case in accordance with the terms hereof or thereof.

(f) SEC DOCUMENTS,  FINANCIAL  STATEMENTS.  Since December 31, 1997, the Company
has timely filed (within applicable  extension periods) all reports,  schedules,
forms,  statements and other  documents  required to be filed by it with the SEC
pursuant to the reporting  requirements of the Securities  Exchange Act of 1934,
as amended (the  "EXCHANGE  ACT") (all of the foregoing  filed prior to the date
hereof and all exhibits included therein and financial  statements and schedules
thereto and  documents  incorporated  by reference  therein,  being  hereinafter
referred to herein as the "SEC  DOCUMENTS").  The Company has  delivered to each
Purchaser true and complete copies of the SEC Documents.  As of their respective
dates, the SEC Documents complied in all material respects with the requirements
of the Exchange Act or the Securities Act, as the case may be, and the rules and
regulations of the SEC promulgated  thereunder  applicable to the SEC Documents,
and  none of the SEC  Documents,  at the  time  they  were  filed  with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be stated  therein or necessary in order to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading.  None of the  statements  made in any such SEC  Documents is, or has
been,  required to be amended or updated under  applicable  law (except for such
statements as have been amended or updated in  subsequent  filings made prior to
the date hereof). As of their respective dates, the financial  statements of the
Company  included  in the SEC  Documents  complied  as to  form in all  material
respects with  applicable  accounting  requirements  and the published rules and
regulations  of  the  SEC  applicable  with  respect  thereto.   Such  financial
statements  have  been  prepared  in  accordance  with U.S.  generally  accepted
accounting principles ("GAAP"), consistently applied during the periods involved
(except (i) as may be otherwise  indicated in such  financial  statements or the
notes  thereto,  or (ii) in the case of  unaudited  interim  statements,  to the
extent they may not include footnotes or may be condensed or summary statements)
and fairly present in all material respects the consolidated  financial position
of the Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated  results of their  operations  and cash flows for the periods  then
ended  (subject,  in the case of unaudited  statements,  to immaterial  year-end
audit  adjustments).  Except as set  forth in the  financial  statements  of the
Company included in the Select SEC Documents (as defined below), the Company has
no liabilities,  contingent or otherwise, other than (i) liabilities incurred in
the  ordinary  course  of  business  subsequent  to the  date of such  financial
statements and (ii) obligations under contracts and commitments  incurred in the
ordinary  course of business and not required under GAAP to be reflected in such
financial  statements,  which liabilities and obligations referred to in clauses
(i)  and  (ii),  individually  or in the  aggregate,  are  not  material  to the
financial  condition  or  operating  results  of the  Company.  As  used in this
Agreement,  the term "SELECT SEC  DOCUMENTS"  shall mean the Company's (A) Proxy
Statement  for its 2002 Annual  Meeting,  (B) Annual Report on Form 10-K for the
fiscal year ending December 31, 2002, (C) Quarterly Reports on Form 10-Q for the
quarter  ended March 31, 2003,  and (D) Current  Reports on Form 8-K filed since
December 31, 2002.

(g) ABSENCE OF CERTAIN  CHANGES.  Since  December  31,  2002,  there has been no
material  adverse  change and no material  adverse  development in the business,
properties,  operations, prospects, financial condition or results of operations
of the Company and its Subsidiaries,  taken as a whole,  other than as set forth
in the Select SEC Documents.  The Company has not taken any steps,  and does not
currently  expect  to  take  any  steps,  to  seek  protection  pursuant  to any
bankruptcy or receivership  law nor does the Company or any of its  Subsidiaries
have any  knowledge or reason to believe that its  creditors  intend to initiate
involuntary  bankruptcy  proceedings  with  respect to the Company or any of its
Subsidiaries.

(h) TRANSACTIONS WITH AFFILIATES. None of the officers,  directors, or employees
of the Company is presently a party to any  transaction  with the Company or any
of its  Subsidiaries  (other than for ordinary  course  services solely in their
capacity as employees, officers or directors), including any contract, agreement
or  other  arrangement  providing  for  the  furnishing  of  services  to or by,
providing  for rental of real or  personal  property  to or from,  or  otherwise
requiring  payments  to or from any such  officer,  director  or employee or any
corporation,  partnership,  trust or other  entity  in which  any such  officer,
director, or employee has an ownership interest of five percent or more or is an
officer, director, trustee or partner.

(i) ABSENCE OF  LITIGATION.  There is no action,  suit,  proceeding,  inquiry or
investigation  before  or  by  any  court,  public  board,   government  agency,
self-regulatory  organization or body (including,  without limitation,  the SEC)
pending  or,  to the  knowledge  of  the  Company  or  any of its  Subsidiaries,
threatened against or affecting the Company, any of its Subsidiaries,  or any of
their  respective  directors or officers in their capacities as such, other than
as set forth in the Select SEC Documents.. There are no facts which, if known by
a potential  claimant or governmental  authority,  could give rise to a claim or
proceeding  which,  if asserted or  conducted  with results  unfavorable  to the
Company or any of its  Subsidiaries,  could  reasonably  be  expected  to have a
Material Adverse Effect, other than as set forth in the Select SEC Documents.

(j) INTELLECTUAL  PROPERTY.  Each of the Company and its Subsidiaries owns or is
duly licensed to use all patents,  patent  applications,  trademarks,  trademark
applications,  trade names, service marks,  copyrights,  copyright applications,
licenses, permits, inventions,  discoveries,  processes, scientific,  technical,
engineering and marketing  data,  object and source codes,  know-how  (including
trade  secrets  and  other  unpatented   and/or   unpatentable   proprietary  or
confidential  information,  systems or procedures)  and other similar rights and
proprietary knowledge (collectively, "INTANGIBLES") necessary for the conduct of
its  business as now being  conducted.  To the best  knowledge  of the  Company,
neither  the  Company  nor any  Subsidiary  of the  Company  infringes  or is in
conflict  with any right of any other  person with  respect to any  Intangibles.
Neither the Company nor any of its  Subsidiaries  has received written notice of
any pending conflict with or infringement upon such third party Intangibles. The
termination  of the  Company's  ownership  of,  or  right  to  use,  any  single
Intangible  could  reasonably  be  expected to have a Material  Adverse  Effect.
Neither  the Company nor any of its  Subsidiaries  has entered  into any consent
agreement, indemnification agreement, forbearance to sue or settlement agreement
with respect to the validity of the Company's or its Subsidiaries'  ownership or
right to use its Intangibles and there is no reasonable basis for any such claim
to be successful.  The Intangibles are valid and enforceable and no registration
relating  thereto has lapsed,  expired or been  abandoned  or canceled or is the
subject of cancellation or other adversarial  proceedings,  and all applications
therefor are pending and in good standing. The Company and its Subsidiaries have
complied,   in  all  material  respects,   with  their  respective   contractual
obligations  relating to the  protection  of the  Intangibles  used  pursuant to
licenses.  No person is infringing on or violating the Intangibles owned or used
by the Company or its Subsidiaries.

(k) TITLE.  The Company and its  Subsidiaries  have good and marketable title in
fee simple to all real property and good and merchantable  title to all personal
property  owned by them that is material to the  business of the Company and its
Subsidiaries,  in each  case  free and  clear  of all  liens,  encumbrances  and
defects,  except for (i) a first priority  security interest granted in favor of
Silicon Valley Bank to secure the Company's obligations thereto pursuant to that
certain Loan and  Security  Agreement  dated as of September  20, 2002 among the
Company,  P-Com Network Services,  Inc. and Silicon Valley Bank and that certain
Loan and Security  Agreement (EXIM Program) dated as of September 20, 2002 among
the Company, P-Com Network Services, Inc. and Silicon Valley Bank, and (ii) such
other  liens,  encumbrances  and  defects  as do  not,  individually  or in  the
aggregate,  materially  affect the value of such property and do not  materially
interfere  with the use made and  proposed  to be made of such  property  by the
Company and its Subsidiaries.  Any real property and facilities held under lease
by the Company and its Subsidiaries are held by them under valid, subsisting and
enforceable  leases  with  such  exceptions  as  are  not  material  and  do not
materially  interfere with the use made and proposed to be made of such property
and buildings by the Company and its Subsidiaries.

(l)  ENVIRONMENTAL  MATTERS.  There  is no  environmental  litigation  or  other
environmental  proceeding  pending or threatened by any governmental  regulatory
authority  or others with  respect to the current or any former  business of the
Company or its Subsidiaries or any partnership or joint venture  currently or at
any time  affiliated  with the  Company or its  subsidiaries.  No state of facts
exists as to  environmental  matters or Hazardous  Substances (as defined below)
that involves the reasonable likelihood of a material capital expenditure by the
Company  or its  Subsidiaries  or that may  otherwise  have a  Material  Adverse
Effect.  No Hazardous  Substances  have been treated,  stored or disposed of, or
otherwise  deposited,  in or on the properties owned or leased by the Company or
its Subsidiaries or by any partnership or joint venture currently or at any time
affiliated  with the Company or its  Subsidiaries in violation of any applicable
environmental laws. The environmental compliance programs of the Company and its
Subsidiaries  comply  in all  respects  with  all  environmental  laws,  whether
federal,  state or  local,  currently  in  effect.  As used  herein,  "HAZARDOUS
Substances" means any substance, waste, contaminant,  pollutant or material that
has been determined by any governmental authority to be capable of posing a risk
of injury to health, safety, property or the environment.

(m) DISCLOSURE. All information relating to or concerning the Company and/or any
Subsidiary  or  Subsidiaries  set forth in this  Agreement  or  provided  to any
Purchaser  pursuant to Section 2(d) hereof or otherwise in  connection  with the
transactions  contemplated  hereby is true and correct in all material  respects
and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein,  in light of the circumstances under
which they were made, not misleading.  No event or circumstance  has occurred or
exists  with  respect to the  Company or its  Subsidiaries  or their  respective
businesses, properties, prospects, operations or financial conditions, which has
not been publicly disclosed but, under applicable law, rule or regulation, would
be required to be disclosed by the Company in a registration  statement filed on
the date  hereof by the  Company  under the  Securities  Act with  respect  to a
primary issuance of the Company's securities.

(n) ACKNOWLEDGMENT REGARDING PURCHASERS' PURCHASE OF THE SECURITIES. The Company
acknowledges  and agrees  that none of the  Purchasers  is acting as a financial
advisor or fiduciary of the Company (or in any similar capacity) with respect to
this Agreement or the transactions contemplated hereby, the relationship between
the Company and the  Purchasers is  "arms-length"  and any statement made by any
Purchaser  or any of its  representatives  or  agents  in  connection  with this
Agreement and the transactions  contemplated hereby is merely incidental to such
Purchaser's  purchase of Securities and has not been relied upon by the Company,
its officers or directors in any way. The Company further  acknowledges that the
Company's  decision  to enter into this  Agreement  has been based  solely on an
independent evaluation by the Company and its representatives.

(o) FORM SB-2  ELIGIBILITY.  The Company is  currently  eligible to register the
resale of its Common Stock on a registration  statement filed on Form SB-2 under
the Securities Act.

(p)  NO  GENERAL   SOLICITATION.   Neither  the  Company  nor  any   distributor
participating on the Company's behalf in the  transactions  contemplated  hereby
(if any) nor any person  acting for the Company,  or any such  distributor,  has
conducted any "general  solicitation,"  as such term is defined in Regulation D,
with respect to any of the Securities being offered hereby.

(q) NO INTEGRATED OFFERING.  Neither the Company, nor any of its affiliates, nor
any person  acting on its or their behalf,  has directly or indirectly  made any
offers or sales of any  security  or  solicited  any offers to buy any  security
under  circumstances  that would require  registration  of the Securities  being
offered  hereby under the Securities Act or cause this offering of Securities to
be integrated  with any prior offering of securities of the Company for purposes
of the Securities Act.

(r) NO BROKERS.  The  Company  has taken no action  which would give rise to any
claim by any person for  brokerage  commissions  or finder's fees or for similar
payments  by any  Purchaser  relating  to  this  Agreement  or the  transactions
contemplated hereby.

(s)  ACKNOWLEDGMENT  REGARDING  SECURITIES.  The  number  of  Conversion  Shares
issuable upon  conversion of the Notes and the number of Warrant Shares issuable
upon  exercise  of the  Warrants  may  increase  in certain  circumstances.  The
Company's executive officers have studied and fully understand the nature of the
Securities being sold hereunder. The Company acknowledges that its obligation to
issue  Conversion  Shares upon  conversion of the Notes in  accordance  with the
terms of such Notes and to issue Warrant Shares upon exercise of the Warrants in
accordance  with the terms of such  Warrants  is, other than as set forth in the
Notes or the Warrants, respectively,  absolute and unconditional,  regardless of
the dilution  that such  issuance may have on the  ownership  interests of other
stockholders  and the  availability of remedies  provided for in the Transaction
Documents relating to a failure or refusal to issue Conversion Shares or Warrant
Shares.  Taking the foregoing into account, the Company's Board of Directors has
determined  in its good faith  business  judgment that the issuance of the Notes
and  Warrants   hereunder  and  the  consummation  of  the  other   transactions
contemplated   hereby  are  in  the  best  interests  of  the  Company  and  its
stockholders.  The Company's  Board of Directors and  executive  officers  fully
intend to honor their  obligations  hereunder  to issue  Conversion  Shares upon
conversion  of the  Notes and  Warrant  Shares  upon  exercise  of the  Warrants
regardless  of the  dilution  that  such  issuance  may  have  on the  ownership
interests of other stockholders and the availability of remedies provided for in
the  Transaction  Documents  relating  to  their  failure  or  refusal  to issue
Conversion Shares or Warrant Shares.

4. COVENANTS.

(a) BEST  EFFORTS.  The parties  shall use their best efforts  timely to satisfy
each of the conditions described in Sections 6 and 7 of this Agreement.

(b) FORM D: BLUE SKY LAWS.  The  Company  shall  file with the SEC a Form D with
respect to the  Securities  as required  under  Regulation  D and provide a copy
thereof to each Purchaser  promptly after such filing.  The Company shall, on or
before the  Closing  Date,  take such  action as the  Company  shall  reasonably
determine  is  necessary to qualify the  Securities  for sale to each  Purchaser
pursuant to this Agreement under applicable securities or "blue sky" laws of the
states of the United  States or obtain  exemption  therefrom,  and shall provide
evidence  of any  such  action  so taken  to each  Purchaser  on or prior to the
Closing Date.  Within two (2) trading days after the Closing  Date,  the Company
shall  file  a  Form  8-K  concerning   this  Agreement  and  the   transactions
contemplated hereby, which Form 8-K shall attach this Agreement and its Exhibits
as exhibits to such Form 8-K (the "8-K FILING").  From and after the 8-K Filing,
the Company hereby  acknowledges that no Purchaser shall be in possession of any
material  nonpublic   information   received  from  the  Company,   any  of  its
Subsidiaries or any of its respective officers, directors,  employees or agents,
that is not disclosed in the 8-K Filing.  The Company shall not, and shall cause
each of its  Subsidiaries  and  its  and  each  of  their  respective  officers,
directors,  employees and agents not to, provide any Purchaser with any material
nonpublic  information regarding the Company or any of its Subsidiaries from and
after the 8-K Filing  without the  express  written  consent of such  Purchaser;
PROVIDED,  HOWEVER,  that a Purchaser  which  exercises its rights under Section
4(m) shall be deemed to have given such express written consent. In the event of
a breach of the foregoing covenant by the Company,  any of its Subsidiaries,  or
any of its or their respective  officers,  directors,  employees and agents,  in
addition  to any  other  remedy  provided  herein  or in the  other  Transaction
Documents, a Purchaser shall have the right to make a public disclosure,  in the
form of a press release,  public  advertisement  or otherwise,  of such material
nonpublic   information   without  the  prior  approval  by  the  Company,   its
Subsidiaries, or any of its or their respective officers,  directors,  employees
or  agents.  No  Purchaser  shall  have  any  liability  to  the  Company,   its
Subsidiaries, or any of its or their respective officers, directors,  employees,
shareholders  or  agents  for any such  disclosure.  Subject  to the  foregoing,
neither  the  Company nor any  Purchaser  shall issue any press  releases or any
other public  statements with respect to the transactions  contemplated  hereby;
PROVIDED,  HOWEVER,  that the  Company  shall be  entitled,  without  the  prior
approval of any Purchaser,  to make any press release or other public disclosure
with respect to such  transactions  (i) in substantial  conformity  with the 8-K
Filing and contemporaneously therewith and (ii) as is required by applicable law
and regulations (provided that in the case of clause (i) each Purchaser shall be
consulted  by the  Company in  connection  with any such press  release or other
public disclosure prior to its release).

(c)  REPORTING  STATUS.  So long as any Purchaser  beneficially  owns any of the
Securities,  the Company shall timely file (within applicable extension periods)
all reports  required to be filed with the SEC pursuant to the Exchange Act, and
the Company shall not terminate its status as an issuer required to file reports
under the Exchange  Act even if the  Exchange  Act or the rules and  regulations
thereunder would permit such termination.

(d) USE OF PROCEEDS.  The Company  shall use the proceeds  from the issuance and
sale of the Securities for general corporate purposes and working capital.  Such
proceeds  shall not be used to (i) pay  dividends;  (ii) pay for any increase in
executive  compensation  or make  any  loan or  other  advance  to any  officer,
employee,  shareholder,  director or other affiliate of the Company, without the
express  approval  of the  Board of  Directors  acting in  accordance  with past
practice;  (iii)  purchase debt or equity  securities  of any entity  (including
redeeming the Company's own securities),  except for (A) the loans  contemplated
by clause (x) of this Section  4(d),  (B)  evidences of  indebtedness  issued or
fully  guaranteed  by the United  States of America and having a maturity of not
more than one year from the date of  acquisition,  (C)  certificates of deposit,
notes,  acceptances and repurchase agreements having a maturity of not more than
one year from the date of  acquisition  issued by a bank organized in the United
States having capital,  surplus and undivided profits of at least  $500,000,000,
(D) the  highest-rated  commercial  paper having a maturity of not more than one
year from the date of acquisition,  and (E) "Money Market" fund shares, or money
market accounts fully insured by the Federal Deposit  Insurance  Corporation and
sponsored  by  banks  and  other  financial  institutions,   provided  that  the
investments consist principally of the types of investments described in clauses
(B), (C), or (D) above; or (iv) make any investment not directly  related to the
current business of the Company.

(e) FINANCIAL INFORMATION.  The Company shall send (via electronic  transmission
or  otherwise)  the following  reports to the  Purchasers  until the  Purchasers
transfer, assign or sell all of their Securities: (i) within ten (10) days after
the filing with the SEC, a copy of its Annual Report on Form 10-K, its Quarterly
Reports on Form 10-Q, its proxy  statements and any Current Reports on Form 8-K;
and (ii) within one (1) day after release,  copies of all press releases  issued
by the Company or any of its Subsidiaries.

(f)  RESERVATION OF SHARES.  The Company shall at all times have  authorized and
reserved  for the  purpose of issuance a  sufficient  number of shares of Common
Stock to provide for the full conversion of the  outstanding  Notes and issuance
of the  Conversion  Shares in  connection  therewith  (subject to obtaining  the
Authorized  Stock  Approval  contemplated  by Section  4(p)  below) and the full
exercise of the Warrants and the  issuance of the Warrant  Shares in  connection
therewith, in each case to the extent required by the Notes and the Warrants.

(g) LISTING.  The Company shall  promptly  secure the listing of the  Conversion
Shares  and the  Warrant  Shares  upon  each  national  securities  exchange  or
automated  quotation  system,  if any,  upon which shares of Common Stock become
listed or quoted  (subject to official notice of issuance upon conversion of the
Notes or  exercise of the  Warrants)  and shall  maintain,  so long as any other
shares  of  Common  Stock  shall be so listed or  quoted,  such  listing  of all
Conversion  Shares  and  Warrant  Shares  from  time to time  issuable  upon the
conversion  of the Notes or the  exercise of the  Warrants.  The  Company  shall
comply in all material respects with the reporting, filing and other obligations
under the bylaws or rules of any such national  securities exchange or automated
quotation  system on which its shares of Common Stock are listed or quoted.  The
Company shall promptly provide to each holder of Notes and/or Warrants copies of
any notices it receives regarding the continued  eligibility of the Common Stock
for trading on any national securities exchange or automated quotation system on
which  securities  of the same class or series  issued by the  Company  are then
listed or quoted, if any.

(h)  CORPORATE  EXISTENCE.   So  long  as  a  Purchaser  beneficially  owns  any
Securities, the Company shall maintain its corporate existence, and in the event
of a merger,  consolidation or sale of all or substantially all of the Company's
assets,  the Company shall ensure that the surviving or successor entity in such
transaction (i) assumes the Company's  obligations hereunder and under the other
Transaction Documents and (ii) is a publicly traded corporation.

(i) NO INTEGRATED  OFFERINGS.  The Company shall not make any offers or sales of
any security (other than the Securities) under  circumstances that would require
registration  of the  Securities  being  offered  or sold  hereunder  under  the
Securities  Act or cause this offering of the  Securities to be integrated  with
any other offering of securities by the Company for purposes of any  stockholder
approval provision applicable to the Company or its securities.

(j) LEGAL COMPLIANCE. The Company shall conduct its business and the business of
its  subsidiaries  in compliance  with all laws,  ordinances or  regulations  of
governmental entities applicable to such businesses, except where the failure to
do so would not have a Material Adverse Effect.

(k)  REDEMPTIONS AND DIVIDENDS.  So long as any Purchaser  holds any Notes,  the
Company shall not,  without first obtaining the written  approval of the holders
of a majority of the aggregate  principal amount of the Notes then  outstanding,
repurchase,  redeem or declare or pay any cash dividend or  distribution  on any
shares of capital stock of the Company.

(l)  INFORMATION.  So long as any Purchaser  holds any Notes,  the Company shall
furnish to such Purchaser:

(i)  concurrently  with the filing  with the SEC of its  annual  reports on Form
10-K, a certificate  of the President,  a Vice  President or a senior  financial
officer  of  the  Company   stating  that,   based  upon  such   examination  or
investigation  and review of this  Agreement  as in the opinion of the signer is
necessary  to enable  the signer to express an  informed  opinion  with  respect
thereto,  neither the Company nor any of its  Subsidiaries is or has during such
period been in default in the  performance  or  observance  of any of the terms,
covenants or conditions  hereof,  or, if the Company or any of its  Subsidiaries
shall be or shall have been in default,  specifying all such  defaults,  and the
nature and period of  existence  thereof,  and what  action the  Company or such
Subsidiary has taken, is taking or proposes to take with respect thereto; and

(ii)  the  information  the  Company  must  deliver  to  any  holder  or to  any
prospective  transferee  of  Securities  in  order to  permit  the sale or other
transfer of such Securities pursuant to Rule 144A of the SEC or any similar rule
then in effect.

The Company  shall keep at its  principal  executive  office a true copy of this
Agreement  (as at the time in effect),  and cause the same to be  available  for
inspection  at such  office  during  normal  business  hours  by any  holder  of
Securities or any  prospective  transferee of Securities  designated by a holder
thereof.

(m)  INSPECTION  OF  PROPERTIES  AND  BOOKS.  So  long  as any  Purchaser  shall
beneficially  own any  Securities,  such Purchaser and its  representatives  and
agents   (collectively,   the  "INSPECTORS")  shall  have  the  right,  at  such
Purchaser's  expense,  to visit and inspect any of the properties of the Company
and of its  Subsidiaries,  to examine  the books of account  and  records of the
Company and of its Subsidiaries, to make or be provided with copies and extracts
therefrom,  to discuss the affairs,  finances and accounts of the Company and of
its  Subsidiaries  with,  and to be  advised  as to the same by,  its and  their
officers,  employees and independent  public  accountants (and by this provision
the Company  authorizes such  accountants to discuss such affairs,  finances and
accounts, whether or not a representative of the Company is present) all at such
reasonable  times and intervals and to such reasonable  extent as such Purchaser
may desire; PROVIDED,  HOWEVER, that each Inspector shall hold in confidence and
shall not make any disclosure (except to such Purchaser) of any such information
which the  Company  determines  in good faith to be  confidential,  and of which
determination the Inspectors are so notified,  unless (i) the disclosure of such
information is necessary to avoid or correct a  misstatement  or omission in any
registration  statement  covering  the  Securities,  (ii)  the  release  of such
information  is ordered  pursuant  to a subpoena  or other order from a court or
government body of competent  jurisdiction,  or (iii) such  information has been
made generally  available to the public other than by disclosure in violation of
this or any other agreement.  Each Purchaser agrees that it shall, upon learning
that  disclosure of such  information is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt notice to the
Company and allow the Company, at its expense,  to undertake  appropriate action
to prevent  disclosure of, or to obtain a protective  order for, the information
deemed confidential.

(n) CONFIDENTIAL AGREEMENT. Except for any disclosure required by applicable law
or rules of the SEC, the Company and each Purchaser  shall, and shall direct its
respective  representatives  to, hold in confidence all  information  concerning
this  Agreement and the  transactions  contemplated  hereby until the earlier of
such  time as (i) the  Company  has made a public  announcement  concerning  the
Agreement and the  transactions  contemplated  hereby or (ii) this  Agreement is
terminated.

(o) EXPENSES.  Each Party shall pay its own  out-of-pocket  expenses incurred by
it,  its  affiliates,   and  its  or  their  advisors  in  connection  with  the
negotiation, preparation, execution and delivery of this Agreement and the other
Transaction Documents,  including, without limitation, such advisors' reasonable
due diligence and attorneys' fees and expenses (the "EXPENSES").

(p) STOCKHOLDER  APPROVAL.  The Company shall call a meeting of its stockholders
to be held as promptly as  practicable  (but in any event no later than 120 days
after the Closing  Date) for the purpose of voting  upon and  approving  (i) the
increase in the number of authorized  shares of the Company's  Common Stock to a
number  sufficient  to provide for the  conversion of all of the Notes issued by
the Company to the Purchasers pursuant hereto (the "AUTHORIZED STOCK APPROVAL"),
and (ii) the  anti-dilution  and  other  conversion/exercise  price  adjustments
contained in the Notes and the  Warrants,  the approval for which is required by
Article VII, Section 8 of the Company's Bylaws (the "PRICE ADJUSTMENT  APPROVAL"
and, together with the Authorized Stock Approval,  the "STOCKHOLDER  APPROVAL").
The Company shall recommend to its  stockholders  approval of such matters.  The
Company shall use its best efforts to solicit from its  stockholders  proxies in
favor of such matters sufficient to obtain the Stockholder  Approval,  and shall
vote such proxies,  and shall use its best efforts to cause all "affiliates" (as
such term is defined in Rule 12b-2  promulgated  under the Exchange  Act) of the
Company to vote any shares of Common Stock beneficially owned by such persons or
entities,  in  favor of such  matters.  In the  event  and  upon  obtaining  the
Authorized  Stock Approval,  the Company shall take all such corporate action as
shall be necessary to reserve the Conversion Shares for issuance upon conversion
of the Notes in accordance with the terms thereof. Unless and until such time as
the Company obtains the Price Adjustment Approval, the Company shall not sell or
issue  any  shares  of  Common  Stock  or any  securities  convertible  into  or
exercisable or  exchangeable  for shares of Common Stock for  consideration  per
share (which shall include the total amount of  consideration,  if any, received
by the Company for such sale or issuance  plus, in the case of  securities  that
are convertible  into or exercisable or exchangeable for shares of Common Stock,
the  minimum  amount of  consideration,  if any,  payable  to the  Company  upon
conversion  into or exercise or exchange for each share of Common Stock) that is
less than the Exercise Price of the Series B Warrants then in effect.

5. TRANSFER AGENT INSTRUCTIONS.

(a) The Company shall instruct its transfer agent to issue certificates (subject
to the legend and other  provisions  hereof and in the Notes and the  Warrants),
registered  in the name of each  Purchaser  or its nominee,  for the  Conversion
Shares and the Warrant  Shares in such amounts as specified from time to time by
such  Purchaser to the Company upon  conversion  of the Notes or exercise of the
Warrants,  as  applicable.  To the extent and during  the  periods  provided  in
Sections 2(f) and 2(g) of this Agreement,  all such certificates  shall bear the
restrictive legend specified in Section 2(g) of this Agreement.

(b) The  Company  warrants  that no  instruction  other  than such  instructions
referred to in this Section 5 and stop transfer  instructions  to give effect to
Section  2(f)  hereof in the case of the  transfer of the  Conversion  Shares or
Warrant Shares prior to registration of the Conversion Shares and Warrant Shares
under the  Securities Act or without an exemption  therefrom,  shall be given by
the Company to its transfer  agent and that the  Securities  shall  otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement. Nothing in this Section shall affect in any way each
Purchaser's obligations and agreement set forth in Section 2(g) hereof to resell
the  Securities  pursuant to an  effective  registration  statement  or under an
exemption from the registration requirements of applicable securities law.

(c) If any Purchaser provides the Company and the transfer agent with an opinion
of  counsel,  which  opinion of counsel  shall be in form,  substance  and scope
customary for opinions of counsel in comparable transactions, to the effect that
the  Securities  have been sold or  transferred  pursuant to an  exemption  from
registration,  or any Purchaser provides the Company with an opinion of counsel,
which  opinion of counsel shall be in form,  substance  and scope  customary for
opinions  of  counsel  in  comparable  transactions,  to the  effect  that  such
Securities may be sold under Rule 144(k),  the Company shall permit the transfer
and, in the case of the Conversion Shares and Warrant Shares,  promptly instruct
its transfer  agent to issue one or more  certificates  in such name and in such
denominations as specified by such Purchaser.

6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

         The obligation of the Company hereunder to issue and sell the Notes and
the Warrants to the  Purchasers  and to otherwise  consummate  the  transactions
contemplated hereby is subject to the satisfaction, at or before the Closing, of
each of the following conditions thereto, provided that these conditions are for
the  Company's  sole benefit and may be waived by the Company at any time in its
sole discretion.

(a) Each Purchaser shall have executed such  Purchaser's  Execution Page to this
Agreement and the  Registration  Rights  Agreement and delivered the same to the
Company.

(b) Each Purchaser shall have delivered the amount of such Purchaser's  Purchase
Price to the Company by wire transfer in accordance  with the Company's  written
wiring instructions.

(c) The  representations  and  warranties  of each  Purchaser  shall be true and
correct as of the date when made and as of the  Closing  Date as though  made at
that time (except for representations and warranties that speak as of a specific
date, which  representations and warranties shall be true and correct as of such
date),  and such Purchaser shall have  performed,  satisfied and complied in all
material respects with the covenants, agreements and conditions required by this
Agreement to be performed,  satisfied or complied  with by such  Purchaser at or
prior to the Closing Date.

(d) No statute, rule, regulation,  executive order, decree, ruling or injunction
shall  have been  enacted,  entered,  promulgated  or  endorsed  by any court or
governmental   authority  of  competent   jurisdiction  or  any  self-regulatory
organization  having  authority  over  the  matters  contemplated  hereby  which
prohibits  the  consummation  of any of the  transactions  contemplated  by this
Agreement.  7.  CONDITIONS  TO EACH  PURCHASER'S  OBLIGATION  TO  PURCHASE.  The
obligation  of each  Purchaser  hereunder to purchase the Notes and the Warrants
from the Company  and to  otherwise  consummate  the  transactions  contemplated
hereby is subject to the satisfaction, at or before the Closing Date, of each of
the following conditions, provided that such conditions are for such Purchaser's
sole benefit and may be waived by such Purchaser at any time in such Purchaser's
sole discretion:

(a) The Company shall have  executed this  Agreement,  the  Registration  Rights
Agreement and the Security Documents,  and delivered executed original copies of
the same to such Purchaser.

(b) The Company shall have  delivered to such  Purchaser duly executed Notes and
Warrants  (each  in  such   denominations  as  such  Purchaser  shall  request),
registered in such Purchaser's name.

(c) The  representations and warranties of the Company shall be true and correct
as of the date when made and as of the Closing  Date as though made at that time
(except for  representations  and  warranties  that speak as of a specific date,
which  representations and warranties shall be true and correct as of such date)
and the Company  shall have  performed,  satisfied  and complied in all material
respects  with  the  covenants,  agreements  and  conditions  required  by  this
Agreement to be performed, satisfied or complied with by the Company at or prior
to the Closing Date.

(d) No statute, rule, regulation,  executive order, decree, ruling,  injunction,
action or proceeding shall have been enacted,  entered,  promulgated or endorsed
by  any  court  or  governmental  authority  of  competent  jurisdiction  or any
self-regulatory  organization  having  authority  over the matters  contemplated
hereby which questions the validity of, challenges or prohibits the consummation
of, any of the transactions contemplated by this Agreement.

(e) Each  Purchaser  shall have  received an opinion of the  Company's  counsel,
dated  as  of  the  Closing  Date,  in  form,  scope  and  substance  reasonably
satisfactory  to the  Purchaser  and in  substantially  the  form of  EXHIBIT  H
attached hereto.

(f) There shall have been no material  adverse  changes and no material  adverse
developments  in the  business,  properties,  operations,  prospects,  financial
condition or results of operations of the Company and its subsidiaries, taken as
a whole, since the date hereof, and no information,  of which the Purchasers are
not  currently  aware,  shall come to the  attention of the  Purchasers  that is
materially adverse to the Company.

(g) Each Purchaser  shall have received a copy of  resolutions,  duly adopted by
the Board of Directors  of the Company,  which shall be in full force and effect
at the time of the  applicable  Closing,  authorizing  the  consummation  by the
Company of the  transactions  contemplated  hereby and by the other  Transaction
Documents,  certified as such by the  Secretary  or  Assistant  Secretary of the
Company.

8. COLLATERAL AGENCY PROVISIONS.

(a) APPOINTMENT OF COLLATERAL  AGENT. The Purchasers  hereby appoint North Sound
Legacy  Institutional  Fund LLC,  to act as  collateral  agent (the  "COLLATERAL
AGENT")  and  North  Sound  Legacy  Institutional  Fund  LLC,  agrees  to act as
Collateral Agent for the Purchasers,  as contemplated herein and in the Security
Documents.

(b) COLLATERAL AGENT AUTHORIZED TO ENTER INTO COLLATERAL DOCUMENTS.  Each of the
Purchasers  authorizes the Collateral Agent to enter into the Security Documents
on its behalf.

(c) AMENDMENT TO SECURITY  DOCUMENTS.  The Purchasers  holding a majority of the
total outstanding  principal balance of the Notes (the "REQUIRED HOLDERS") shall
have the right to direct the Collateral  Agent, from time to time, to consent to
any amendment,  modification  or supplement to or waiver of any provision of any
Security  Document  and to release any  Collateral  (as defined in the  Security
Documents)  from any lien or security  interest  held by the  Collateral  Agent;
PROVIDED, HOWEVER, that (i) no such direction shall require the Collateral Agent
to consent to the modification of any provision or portion thereof which (in the
sole  judgment of the  Collateral  Agent) is intended to benefit the  Collateral
Agent,  (ii) the Collateral  Agent shall have the right to decline to follow any
such  direction if the Collateral  Agent shall  determine in good faith that the
directed  action is not  permitted by the terms of any Security  Document or may
not  lawfully  be taken and (iii) no such  direction  shall  waive or modify any
provision of any Security  Document the waiver or modification of which requires
the  consent  of all  Purchasers  unless all  Purchasers  consent  thereto.  The
Collateral  Agent  may rely on any such  direction  given to it by the  Required
Holders  and shall be fully  protected  in relying  thereon,  and shall under no
circumstances  be  liable,  except in  circumstances  involving  the  Collateral
Agent's gross negligence or willful  misconduct as shall have been determined in
a final  nonappealable  judgment of a court of  competent  jurisdiction,  to any
holder of the Notes or any other person or entity for taking or refraining  from
taking action in accordance  with any direction or otherwise in accordance  with
any of the Security Documents.

(d) DUTIES OF COLLATERAL AGENT.

(i) POWERS.  The Collateral  Agent shall have and may exercise such powers under
the Security Documents as are specifically  delegated to the Collateral Agent by
the terms  hereof  and  thereof,  together  with such  powers as are  reasonably
incidental  thereto.  The Collateral  Agent shall not have any implied duties or
any  obligations  to take any action  under the  Security  Documents  except any
action  specifically  provided  by the  Security  Documents  to be  taken by the
Collateral Agent.

(ii) RELIANCE ON INSTRUCTIONS OF REQUIRED HOLDERS. The Collateral Agent shall be
required to act or to refrain  from acting (and shall be fully  protected  in so
acting or refraining from acting) upon the written  instructions of the Required
Holders  and  such  instructions  shall  be  binding  upon  all the  Purchasers;
PROVIDED,  HOWEVER,  that the Collateral Agent shall not be required to take any
action which the Collateral Agent in good faith believes (A) could reasonably be
expected  to  expose  it to  personal  liability  or (B)  is  contrary  to  this
Agreement, the Security Documents and applicable law.

(iii)  ACTION  WITHOUT  INSTRUCTIONS  AFTER  EVENT OF  DEFAULT.  Absent  written
instructions  from the Required Holders at a time when an Event of Default shall
have occurred and be continuing,  the Collateral  Agent may take, but shall have
no obligation to take,  any and all actions under the Security  Documents or any
of  them or  otherwise  as it  shall  deem to be in the  best  interests  of the
Purchasers;  PROVIDED, HOWEVER, that in the absence of written instructions from
the Required Holders, the Collateral Agent shall not exercise remedies available
to it under any Security  Document  with respect to the  Collateral  or any part
thereof (other than preserving, collecting and protecting the Collateral and the
proceeds thereof).

(iv) INDEPENDENT RIGHT OF EACH PURCHASER TO INSTRUCT COLLATERAL AGENT. The right
of  each  Purchaser  to  instruct  the  Collateral  Agent  is the  separate  and
individual  property of such  Purchaser  and may be exercised as such  Purchaser
sees  fit in its  sole  discretion  and  with no  liability  to any  other  such
Purchaser  for the  exercise  or  non-exercise  thereof.  Without  limiting  the
foregoing,  the Required Holders shall not be liable under any  circumstances to
any other Purchaser for any action taken or omitted to be taken hereunder by the
Collateral Agent upon written instructions from the Required Holders.

(v)  RELATIONSHIP  BETWEEN  COLLATERAL  AGENT AND PURCHASERS.  The  relationship
between  the  Collateral  Agent and the  Purchasers  is and shall be only to the
extent  explicitly  provided for herein that of agent and  principal and nothing
herein contained shall be construed to constitute the Collateral Agent a trustee
for any Purchaser or to impose on the  Collateral  Agent duties and  obligations
other than those expressly provided for herein.  Without limiting the generality
of the  foregoing,  neither  the  Collateral  Agent  nor  any of its  directors,
officers, employees, partners or agents shall:

                           (A) be  responsible  to the other  Purchasers for any
recitals, representations or warranties contained
in, or for the execution, validity,  genuineness,  perfection,  effectiveness or
enforceability  of, the Security  Documents (it being expressly  understood that
any determination of the foregoing is the responsibility of each Purchaser),

                           (B) be  responsible  to the other  Purchasers for the
validity, genuineness, perfection, effectiveness,
enforceability,  existence, value or enforcement of any security interest in the
Collateral  (it  being  expressly  understood  that  any  determination  of  the
foregoing is the responsibility of each Purchaser),

                           (C) be under  any duty to  inquire  into or pass upon
any of the foregoing matters, or to make any
inquiry  concerning  the  performance  by any  person  or entity of its or their
obligations under any Security Document (it being expressly  understood that any
determination of the foregoing is the responsibility of each Purchaser),

                           (D) be deemed to have  knowledge of the occurrence of
an Event of Default (as defined in the Notes), or
any event,  condition or  circumstance  the occurrence of which would,  with the
giving of notice or the passage of time or both, constitute an Event of Default,

                           (E) be  responsible  or liable to the  Purchasers for
any shortage, discrepancy, damage, loss or
destruction  of any part of the  Collateral  wherever  the  same may be  located
regardless of the cause thereof  unless the same shall happen solely through the
gross  negligence or willful  misconduct of the  Collateral  Agent as shall have
been  determined  in a final  nonappealable  judgment  of a court  of  competent
jurisdiction,

                           (F)  have any  liability  to the  Purchasers  for any
error or omission or action or failure to act of any
kind made in the settlement, collection or payment in connection with any of the
Security  Documents  or any of the  Collateral  or any  instrument  received  in
payment  therefor  or for any damage  resulting  therefrom  other than as a sole
result of its own gross  negligence  or  willful  misconduct  as shall have been
determined  in  a  final   nonappealable   judgment  of  a  court  of  competent
jurisdiction, or

                           (G) in any event, be liable to the Purchasers as such
for any action taken or omitted by it, absent,
in each case  described  in this  subsection,  its gross  negligence  or willful
misconduct as shall have been determined in a final nonappealable  judgment of a
court of competent jurisdiction.

(e) STANDARD OF CARE.  Each Purchaser  agrees with all other  Purchasers and the
Collateral Agent that nothing  contained in this Agreement shall be construed to
give rise to, nor shall such Purchaser have, any claims  whatsoever  against the
Collateral Agent on account of any act or omission to act in connection with the
exercise  of any right or remedy of the  Collateral  Agent  with  respect to the
Security  Documents  or the  Collateral  in the absence of gross  negligence  or
willful  misconduct of the Collateral  Agent as shall have been  determined in a
final nonappealable judgment of a court of competent jurisdiction.

(f) COLLATERAL IN POSSESSION OF COLLATERAL  AGENT. The Collateral Agent shall be
at  liberty  to  place  any of the  Collateral,  this  Agreement,  the  Security
Documents and any other instruments, documents or deeds delivered to it pursuant
to or in connection  with any of such documents in any safe deposit box, safe or
receptacle  selected by it or with any bank, any company whose business includes
undertaking  the safe custody of documents or any firm of lawyers of good repute
and the Collateral  Agent shall not be responsible for any loss thereby incurred
unless such loss is solely the result of the Collateral Agent's gross negligence
or willful  misconduct as shall have been  determined  in a final  nonappealable
judgment of a court of competent jurisdiction.  The Collateral Agent's books and
records shall at all times show that the  Collateral  is held by the  Collateral
Agent subject to the pledge and lien of the Security Documents.

(g) AGENTS, OFFICERS AND EMPLOYEES OF COLLATERAL AGENT. The Collateral Agent may
execute any of its duties under the Security Documents by or through its agents,
officers  or  employees.  Neither  the  Collateral  Agent nor any of its agents,
officers  or  employees  shall be liable for any  action  taken or omitted to be
taken by it or them in good faith,  be  responsible  for the  consequence of any
oversight  or error of  judgment  or  answerable  for any loss unless any of the
foregoing  shall  happen  through  its or  their  gross  negligence  or  willful
misconduct as shall have been determined in a final nonappealable  judgment of a
court of competent jurisdiction.

(h)  APPOINTMENT  OF  CO-AGENT.  Whenever  the  Collateral  Agent  shall deem it
necessary or prudent in order  either to conform to any law of any  jurisdiction
in which  all or any part of the  Collateral  shall be  situated  or to make any
claim  or  bring  any  suit  with  respect  to the  Collateral  or the  Security
Documents,  or in the event that the Collateral  Agent shall have been requested
to do so by or on behalf of the Required  Holders,  the  Collateral  Agent shall
execute and  deliver a  supplemental  agreement  and all other  instruments  and
agreements  necessary or proper to constitute a bank or trust company, or one or
more other persons or entities approved by the Collateral  Agent,  either to act
as co-agent or co-agents  with respect to all or any part of the  Collateral  or
with respect to the Security Documents, jointly with the Collateral Agent or any
successor  or  successors,  or to act as  separate  agent or  agents of any such
property,  in any  such  case  with  such  powers  as may be  provided  in  such
supplemental agreement, and to vest in such bank, trust company or other persons
or  entities  as such  co-agent  or  separate  agent,  as the case  may be,  any
property,  title,  right or power of the  Collateral  Agent deemed  necessary or
advisable by the Required Holders or the Collateral Agent.

(i) RELIANCE ON CERTAIN  DOCUMENTS.  The  Collateral  Agent shall be entitled to
rely on any  communication,  instrument or document believed by it to be genuine
and correct and to have been signed or sent by the proper person or entity,  and
with  respect to all legal  matters  shall be  entitled to rely on the advice of
legal advisors  selected by it concerning  all matters  relating to the Security
Documents and its duties  hereunder and thereunder  and otherwise  shall rely on
such experts as it deems necessary or desirable,  and shall not be liable to any
Purchaser or any other person or entity for the consequences of such reliance in
the  absence  of gross  negligence  or  willful  misconduct  as shall  have been
determined  in  a  final   nonappealable   judgment  of  a  court  of  competent
jurisdiction.

(j) COLLATERAL AGENT MAY HAVE SEPARATE RELATIONSHIP WITH PARTIES. The Collateral
Agent (or any affiliate of the Collateral Agent) may,  notwithstanding  the fact
that it is the Collateral  Agent,  act as a lender to the Company and lend money
to, and  generally  engage in any kind of  business  with such party in the same
manner and to the same effect as though it were not the  Collateral  Agent;  and
such business  shall not constitute a breach of any obligation of the Collateral
Agent to the other Purchasers.

(k) INDEMNIFICATION OF COLLATERAL AGENT. Each of the Purchasers,  ratably on the
basis of the respective  principal  amounts of the Notes outstanding at the time
of the occurrence giving rise to the below liabilities,  losses, etc., agrees to
indemnify the Collateral  Agent for any and all  liabilities,  losses,  damages,
penalties,  actions,  judgments,  suits, costs, expenses or disbursements of any
kind and nature  whatsoever  that may be imposed  on,  incurred  by or  asserted
against the Collateral Agent in its capacity as the Collateral Agent, in any way
relating  to or  arising  out  of the  Security  Documents  or the  transactions
contemplated  hereby or thereby or the enforcement of any of the terms hereof or
thereof, provided that neither the Company nor any Purchaser shall be liable for
any of the  foregoing to the extent they arise from gross  negligence or willful
misconduct on the part of the Collateral  Agent as shall have been determined in
a final  nonappealable  judgment  of a court  of  competent  jurisdiction.  This
Section 8(k) shall survive the  termination of this  Agreement.  Prior to taking
any action hereunder as Collateral  Agent, the Collateral Agent may require each
Purchaser to deposit with it  sufficient  sums as it determines in good faith is
necessary to protect the Collateral Agent for costs and expenses associated with
taking such action,  and the Collateral Agent shall have no liability  hereunder
for failure to take such action  unless the  Purchasers  promptly  deposit  such
sums.

(l)  RESIGNATION.  The  Collateral  Agent at any time may resign,  upon 30 days'
prior written notice, by an instrument addressed and delivered to the Purchasers
and the  Company  and may be removed  at any time with or without  cause upon 30
days' prior  written  notice,  by an instrument in writing duly executed by duly
authorized  signatories of the Required Holders. The Required Holders shall also
have the right to  appoint a  successor  to the  Collateral  Agent upon any such
resignation  or  removal,  by  instrument  of  substitution  complying  with the
requirements  of  applicable  law,  or, in the absence of any such  requirement,
without any formality other than appointment and designation in writing,  a copy
of which instrument or writing shall be sent to each Purchaser.  Upon the making
of such  appointment  and  delivery to such  successor  Collateral  Agent of the
Collateral then held by the retiring Collateral Agent, such successor Collateral
Agent shall thereupon succeed to and become vested with all the rights,  powers,
privileges and duties  conferred  hereby and by the Security  Documents upon the
Collateral  Agent  named  herein,   and  one  or  more  such   appointments  and
designations  shall not  exhaust  the right to  appoint  and  designate  further
successor  Collateral Agents hereunder.  The retiring Collateral Agent shall not
be discharged from its duties and obligations  hereunder until, and the retiring
Collateral  Agent shall be so discharged  when, all the  Collateral  held by the
retiring  Collateral Agent has been delivered to the successor  Collateral Agent
and such successor  Collateral  Agent shall execute,  acknowledge and deliver to
each  holder  of the Notes  and to the  Company  an  instrument  accepting  such
appointment.  If no successor shall be appointed and approved on or prior to the
date of any such  resignation,  the resigning  Collateral Agent may apply to any
court of competent  jurisdiction to appoint a successor to act until a successor
shall have been appointed by the Required Holders as above provided.

(m) RIGHTS WITH RESPECT TO COLLATERAL.

(i) Each Purchaser  agrees with all other  Purchasers (A) that it shall not, and
shall not attempt to, exercise any rights with respect to its security  interest
in the Collateral,  whether  pursuant to any other agreement or otherwise (other
than pursuant to this  Agreement),  or take or institute any action  against the
Collateral  Agent or any of the other Purchasers in respect of the Collateral or
its rights hereunder (other than any such action arising from the breach of this
Agreement)  and (B) that such  Purchaser has no other rights with respect to the
Collateral other than as set forth in this Agreement and the Security Documents.

(ii) Each Purchaser  agrees with all other  Purchasers and the Collateral  Agent
that nothing contained in this Section 8 shall be construed to give rise to, nor
shall such Purchaser have, any claims whatsoever  against any other Purchaser or
the Collateral Agent on account of any act or omission to act in connection with
the  exercise  of any  right or  remedy  of the  Collateral  Agent or any  other
Purchaser with respect to the  Collateral in the absence of gross  negligence or
willful  misconduct of such other Purchaser or Collateral  Agent, as applicable,
as shall have been  determined in a final  nonappealable  judgment of a court of
competent jurisdiction.

9. GOVERNING LAW; MISCELLANEOUS.

(a)  GOVERNING  LAW;  JURISDICTION.  This  Agreement  shall be  governed  by and
construed in  accordance  with the laws of the State of Delaware  applicable  to
contracts made and to be performed in the State of Delaware. The Company and the
Purchasers  irrevocably consent to the jurisdiction of the United States federal
courts  and the state  courts  located in the State of  Delaware  in any suit or
proceeding  based on or arising under this Agreement and irrevocably  agree that
all claims in  respect  of such suit or  proceeding  may be  determined  in such
courts.  The Company  irrevocably waives the defense of an inconvenient forum to
the  maintenance  of such suit or  proceeding.  The Company  further agrees that
service of process  upon the Company  mailed by first class mail shall be deemed
in every respect  effective service of process upon the Company in any such suit
or  proceeding.  Nothing herein shall affect the right of any Purchaser to serve
process in any other manner  permitted  by law. The Company  agrees that a final
non-appealable  judgment in any such suit or proceeding  shall be conclusive and
may be enforced in other  jurisdictions by suit on such judgment or in any other
lawful manner.

(b)  COUNTERPARTS.  This Agreement may be executed in two or more  counterparts,
all of which shall be  considered  one and the same  agreement  and shall become
effective when  counterparts have been signed by each party and delivered to the
other party.  This Agreement,  once executed by a party, may be delivered to the
other  parties  hereto by  facsimile  transmission  of a copy of this  Agreement
bearing the signature of the party so delivering  this  Agreement.  In the event
any signature is delivered by facsimile transmission, the party using such means
of delivery  shall cause the manually  executed  Execution  Page(s) hereof to be
physically  delivered to the other party  within five (5) days of the  execution
hereof,  provided that the failure to so deliver any manually executed Execution
Page shall not affect the validity or enforceability of this Agreement.

(c) CONSTRUCTION.  Whenever the context requires, the gender of any word used in
this Warrant includes the masculine,  feminine or neuter,  and the number of any
word includes the singular or plural. Unless the context otherwise requires, all
references  to articles  and  sections  refer to articles  and  sections of this
Agreement,  and all  references to schedules are to schedules  attached  hereto,
each of which is made a part hereof for all purposes.  The descriptive  headings
of the several articles and sections of this Agreement are inserted for purposes
of reference  only, and shall not affect the meaning or  construction  of any of
the provisions hereof.

(d)  SEVERABILITY.  If any  provision  of this  Agreement  shall be  invalid  or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or  enforceability of the remainder of this Agreement or the
validity or enforceability of this Agreement in any other jurisdiction.

(e) ENTIRE  AGREEMENT;  AMENDMENTS.  This  Agreement  and the other  Transaction
Documents contain the entire understanding of the Purchasers, the Company, their
affiliates  and  persons  acting on their  behalf  with  respect to the  matters
covered  herein and therein  and,  except as  specifically  set forth  herein or
therein,  neither  the  Company  nor any  Purchaser  makes  any  representation,
warranty,  covenant or undertaking with respect to such matters. No provision of
this  Agreement may be waived other than by an  instrument in writing  signed by
the party to be charged with  enforcement and no provision of this Agreement may
be amended other than by an instrument in writing signed by the Company and each
Purchaser.

(f)  NOTICES.  Any notices  required or permitted to be given under the terms of
this  Agreement  shall be sent by certified or registered  mail (return  receipt
requested)  or delivered  personally,  by  responsible  overnight  carrier or by
confirmed facsimile,  and shall be effective five (5) days after being placed in
the mail,  if  mailed,  or upon  receipt or refusal  of  receipt,  if  delivered
personally or by responsible  overnight carrier or confirmed facsimile,  in each
case addressed to a party. The initial addresses for such  communications  shall
be as follows,  and each party shall provide  notice to the other parties of any
change in such party's address:

(i) If to the Company:

                           P-Com, Inc.
                           3175 South Winchester Blvd.
                           Campbell, CA 95008
                           Telephone: (408) 866-3666
                           Facsimile:  (408) 874-4461
                           Attention:  Chief Executive Officer

                           with     a copy  simultaneously  transmitted  by like
                                    means  to  (which   transmittal   shall  not
                                    constitute notice hereunder):

                           Sheppard Mullin Richter & Hampton LLP
                           800 Anacapa Street
                           Santa Barbara, CA  93101
                           Telephone: (805) 879-1812
                           Facsimile:  (805) 568-1955
                           Attention:  Theodore R. Maloney, Esq.

(ii) If to any Purchaser,  to such address set forth under such Purchaser's name
on the Execution Page hereto executed by such Purchaser.

(g)  SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding upon and inure to
the benefit of the parties and their successors and assigns.  Except as provided
herein, the Company shall not assign this Agreement or any rights or obligations
hereunder.  Any Purchaser may assign or transfer the Securities  pursuant to the
terms of the Notes,  the Warrants and this Agreement,  as applicable,  or assign
such  Purchaser's  rights hereunder or thereunder to any other person or entity,
except for direct  competitors  of the Company or persons or entities  that have
publicly announced plans to compete directly with the Company. In addition,  and
notwithstanding  anything to the  contrary  contained  in this  Agreement or the
other Transaction Documents, the Securities may be pledged and all rights of any
Purchaser  under  this  Agreement  or  any  other  Transaction  Document  may be
assigned,  without  further  consent of the  Company,  to a bona fide pledgee in
connection with such Purchaser's margin or brokerage account.

(h) THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not
for the  benefit  of, nor may any  provision  hereof be  enforced  by, any other
person; provided that Section 4(o) may be enforced by SDS Capital.

(i)  SURVIVAL.  The  representations  and  warranties  of the  Company  and  the
agreements  and  covenants  set forth in Sections 3, 4, 5, 8 and 9 hereof  shall
survive the Closing notwithstanding any due diligence investigation conducted by
or on  behalf  of any  Purchaser.  Moreover,  none  of the  representations  and
warranties  made by the  Company  herein  shall act as a waiver of any rights or
remedies  any  Purchaser  may  have  under  applicable  U.S.  federal  or  state
securities laws.

(j) PUBLICITY.  The Company and each  Purchaser  shall have the right to approve
before issuance any press releases,  SEC filings, or any other public statements
with respect to the transactions  contemplated hereby;  PROVIDED,  HOWEVER, that
the Company shall be entitled,  without the prior approval of the Purchasers, to
make any press  release or SEC filings with respect to such  transactions  as is
required by applicable law and  regulations  (although the  Purchasers  shall be
consulted by the Company in  connection  with any such press  release and filing
prior to its release and shall be provided with a copy thereof).

(k) FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and
performed,  all such further acts and things,  and shall execute and deliver all
such other  agreements,  certificates,  instruments and documents,  as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

(l)  JOINT  PARTICIPATION  IN  DRAFTING.   Each  party  to  this  Agreement  has
participated  in the  negotiation  and drafting of this  Agreement and the other
Transaction  Documents.  As such,  the language used herein and therein shall be
deemed to be the language  chosen by the parties  hereto to express their mutual
intent, and no rule of strict construction shall be applied against any party to
this Agreement.

(m)  EQUITABLE  RELIEF.  The  Company  acknowledges  that a breach  by it of its
obligations hereunder will cause irreparable harm to each Purchaser by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly, the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
hereunder (including,  but not limited to, its obligations pursuant to Section 5
hereof) will be  inadequate  and agrees,  in the event of a breach or threatened
breach by the Company of the  provisions of this Agreement  (including,  but not
limited to, its obligations  pursuant to Section 5 hereof),  that each Purchaser
shall be entitled, in addition to all other available remedies, to an injunction
restraining  any breach and  requiring  immediate  issuance  and transfer of the
Securities,  without the necessity of showing economic loss and without any bond
or other security being required.

(n)  INDEMNIFICATION BY COMPANY.  From and after the Closing,  the Company shall
hold harmless and indemnify each of the Purchasers  from and against,  and shall
compensate  and reimburse  each of the  Purchasers  for, any damages  (including
reasonable attorneys fees) which are directly or indirectly suffered or incurred
by any of the Purchasers or to which any of the Purchasers may otherwise  become
subject  (regardless  of whether or not such damages  relate to any  third-party
claim) and which  arise from or as a result of, or are  directly  or  indirectly
connected   with  any   inaccuracy   in  or  breach  of  any  of  the  Company's
representations,  warranties or covenants set forth herein.  In the event of the
assertion or  commencement  by any person of any claim or legal  proceeding with
respect to which any Purchaser may have indemnification  rights pursuant to this
Section  9(n),  such  Purchaser  shall  promptly  notify the Company  thereof in
writing, but the failure to so notify the Company will not limit any Purchaser's
rights  to  indemnification   hereunder,   except  to  the  extent  the  Company
demonstrates  that the defense of such action is prejudiced by the failure to so
give such notice.

(o)  ADDITIONAL  ACKNOWLEDGEMENT.   Each  Purchaser  acknowledges  that  it  has
independently  evaluated  the merits of the  transactions  contemplated  by this
Agreement  and  the  other  Transaction  Documents,  that  it has  independently
determined to enter into the transactions  contemplated hereby and thereby, that
it is not relying on any advice from or evaluation by any other  Purchaser,  and
that it is not acting in concert with any other Purchaser in making its purchase
of securities hereunder. The Purchasers and, to its knowledge, the Company agree
that the Purchasers  have not taken any actions that would deem such  Purchasers
to be members of a "group" for purposes of Section 13(d) of the Exchange Act.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS  WHEREOF,  the  undersigned  Purchaser  and the Company have
caused this Agreement to be duly executed as of the date first above written.

P-COM, INC.

By:      /s/ DANIEL W. RUMSEY
    -------------------------------
Name: Daniel W. Rumsey
Title: Vice President

PURCHASER:

NORTH SOUND LEGACY FUND LLC

By:      /S/ ANDREW WILDER
Name:    Andrew Wilder
Title: Chief Financial Officer

Residence:        __________________

Address: 53 Forest Avenue, Second Floor
                  Old Greenwich, CT 06870

Telephone:
Facsimile:        (203) 967-5851
Attention:        Andrew Wilder

PRINCIPAL NOTE AMOUNT ("PNA"): $12,900.00
SERIES A WARRANT SHARES: 21,500
SERIES B WARRANT SHARES: 30,100
                         ------

<PAGE>

         IN WITNESS  WHEREOF,  the  undersigned  Purchaser  and the Company have
caused this Agreement to be duly executed as of the date first above written.

P-COM, INC.

By:      /S/ DANIEL W. RUMSEY
    -------------------------------
Name: Daniel W. Rumsey
Title: Vice President

PURCHASER:

NORTH SOUND LEGACY INSTITUTIONAL FUND LLC

By:      /S/ ANDREW WILDER
Name:    Andrew Wilder
Title: Chief Financial Officer

Residence:        __________________

Address: 53 Forest Avenue, Second Floor
                  Old Greenwich, CT 06870

Telephone:
Facsimile:        (203) 967-5851
Attention:        Andrew Wilder

PRINCIPAL NOTE AMOUNT ("PNA"): $145,200.00
SERIES A WARRANT SHARES: 242,000
SERIES B WARRANT SHARES: 338,800
                         -------

<PAGE>

         IN WITNESS  WHEREOF,  the  undersigned  Purchaser  and the Company have
caused this Agreement to be duly executed as of the date first above written.

P-COM, INC.

By:      /s/ DANIEL W. RUMSEY
------------------------------------
Name: Daniel W. Rumsey
Title: Vice President

PURCHASER:

NORTH SOUND LEGACY INTERNATIONAL LTD.

By:      /s/ ANDREW WILDER
------------------------------------
Name:    Andrew Wilder
Title: Chief Financial Officer

Residence:        _____________________

Address: 53 Forest Avenue, Second Floor
                  Old Greenwich, CT 06870

Telephone:
Facsimile:        (203) 967-5851
Attention:        Andrew Wilder

PRINCIPAL NOTE AMOUNT ("PNA"): $141,900.00
SERIES A WARRANT SHARES: 236,500
SERIES B WARRANT SHARES: 331,100
                         -------Exhibit 10.2
                                                                    ------------

                          REGISTRATION RIGHTS AGREEMENT

      REGISTRATION  RIGHTS  AGREEMENT  (this  "Agreement"),  dated as of May 28,
2003, by and among P-Com,  Inc., a corporation  organized  under the laws of the
State of Delaware (the  "Company"),  and the  undersigned  (together  with their
respective affiliates, the "Initial Investors").

                                    WHEREAS:

      A. In connection with the Securities Purchase  Agreement,  dated as of May
28, 2003, by and among the Company and the Initial  Investors  (the  "Securities
Purchase Agreement"),  the Company has agreed, upon the terms and subject to the
conditions  contained  therein,  to issue and sell to the Initial  Investors (i)
convertible  promissory  notes (the "Notes") that are convertible into shares of
the Company's  common stock,  par value $0.0001 per share (the "Common  Stock"),
upon the terms and subject to the  limitations  and  conditions set forth in the
Notes, and (ii) warrants (the "Warrants") to acquire shares of Common Stock. The
shares of Common Stock issuable upon conversion of or otherwise  pursuant to the
Notes are referred to herein as the "Conversion Shares" and the shares of Common
Stock  issuable  upon  exercise of or  otherwise  pursuant to the  Warrants  are
referred to herein as the "Warrant Shares."

      B. To induce the Initial  Investors to execute and deliver the  Securities
Purchase  Agreement,  the  Company  has agreed to provide  certain  registration
rights  under  the  Securities  Act of  1933,  as  amended,  and the  rules  and
regulations  thereunder,  or any similar  successor statute  (collectively,  the
"Securities Act"), and applicable state securities laws.

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
contained  herein and other good and  valuable  consideration,  the  receipt and
sufficiency  of which are  hereby  acknowledged,  the  Company  and the  Initial
Investors hereby agree as follows:

      1. DEFINITIONS.

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

            (i) "Investors"  means the Initial  Investors and any transferees or
assignees  who agree to become  bound by the  provisions  of this  Agreement  in
accordance with Section 9 hereof.

            (ii)  "register,"   "registered,"  and  "registration"  refer  to  a
registration  effected  by  preparing  and filing a  Registration  Statement  or
Statements in compliance  with the Securities Act and pursuant to Rule 415 under
the Securities Act or any successor rule providing for offering  securities on a
continuous  basis ("Rule 415"), and the declaration or ordering of effectiveness
of such  Registration  Statement by the United  States  Securities  and Exchange
Commission (the "SEC").

<PAGE>

            (iii) "Registrable  Securities" means (a) the Conversion Shares, (b)
the  Warrant  Shares and (c) any other  shares of capital  stock of the  Company
issued or issuable,  from time to time (with any adjustments),  as a dividend or
distribution on, or in exchange for or replacement of, or otherwise with respect
to any of the foregoing.

            (iv) "Registration  Statement" means a registration statement of the
Company under the Securities Act.

         (b)  Capitalized  terms used herein and not  otherwise  defined  herein
shall  have  the  respective  meanings  set  forth  in the  Securities  Purchase
Agreement.

      2. REGISTRATION.

         (a) Demand  Registration.  Subject to the  conditions  of this  Section
2(a),  if the  Company  receives  a  written  request  from  one or  more of the
Investors  (the  "Initiating  Investors")  that the Company file a  Registration
Statement  under the Securities Act  registering  the resale of the  Registrable
Securities,  then the  Company  shall,  (i) give  notice of such  request to all
Investors  as soon as  practicable,  but in no event later than the tenth (10th)
day following the date of such request,  and (ii) prepare promptly and file with
the SEC as soon as practicable,  but in no event later than the thirtieth (30th)
day following the date of such request,  and  thereafter use its best efforts to
cause to become  effective  as soon as  practicable,  a  Registration  Statement
registering  the  resale  of all  Registrable  Securities  that  the  Initiating
Investors  request to be registered and all Registrable  Securities owned by any
other  Investor that notifies the Company in writing,  within  fifteen (15) days
after receipt of the Company's notice  contemplated in clause (i) above, that it
intends to participate in such demand  registration,  which  notification  shall
include  the number of  Registrable  Securities  sought to be  included  by such
Investor and the intended method or methods of distribution of such  Registrable
Securities.  The Registration Statement filed hereunder, to the extent allowable
under  the  Securities  Act  (including   Rule  416),   shall  state  that  such
Registration  Statement  also covers  such  indeterminate  number of  additional
shares of Common Stock as may become  issuable upon  conversion of the Notes and
exercise of the Warrants to prevent dilution resulting from stock splits,  stock
dividends  or  similar  transactions.   The  Registration  Statement  (and  each
amendment  or  supplement   thereto,   and  each  request  for  acceleration  of
effectiveness thereof) shall be provided to (and subject to the approval of) the
Investors participating in such demand registration and their respective counsel
prior to its filing or other  submission.  Notwithstanding  the  foregoing,  the
Company shall not be required to effect a demand  registration  pursuant to this
Section 2(a): (1) prior to the 180th day following the date hereof, or (2) after
the Company has effected one  registration  pursuant to this Section  2(a),  and
such   registration  has  been  declared  or  ordered   effective  and  remained
continuously effective without interruption in accordance with the provisions of
Section 3 hereof for the  duration  of the  Registration  Period (as  defined in
Section 3(a) below).

         (b) Piggy-Back  Registrations.  If, at any time prior to the expiration
of the Registration  Period,  the Company shall file with the SEC a Registration
Statement  relating to an offering  for its own account or the account of others
under the Securities Act of any of its equity securities (other than on Form S-4
or Form S-8 or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity

                                       -2-
<PAGE>

or business or equity  securities  issuable in  connection  with stock option or
other employee  benefit plans),  the Company shall send to each Investor written
notice of such  determination and, if within fifteen (15) days after the date of
such  notice,  such  Investor  shall so request in writing,  the  Company  shall
include  in such  Registration  Statement  all or any  part  of the  Registrable
Securities  such  Investor  requests  to  be  registered,  except  that  if,  in
connection with any underwritten  public offering,  the managing  underwriter(s)
thereof  shall impose a limitation on the number of shares of Common Stock which
may be included in the Registration  Statement because, in such  underwriter(s)'
judgment,  marketing or other  factors  dictate such  limitation is necessary to
facilitate public  distribution,  then,  subject to the other provisions of this
Section  2(b),  the Company  shall be obligated to include in such  Registration
Statement only such limited portion of the  Registrable  Securities with respect
to which such  Investor has  requested  inclusion  hereunder as the  underwriter
shall permit.  Any exclusion of  Registrable  Securities  shall be made pro rata
among the Investors seeking to include Registrable Securities,  in proportion to
the number of Registrable  Securities  sought to be included by such  Investors;
provided, however, that the Company shall not exclude any Registrable Securities
unless the Company has first excluded all outstanding securities, the holders of
which are not  contractually  entitled to inclusion of such  securities  in such
Registration  Statement or are not contractually  entitled to pro rata inclusion
with the Registrable  Securities;  and provided,  further,  however, that, after
giving effect to the immediately preceding proviso, any exclusion of Registrable
Securities  shall be made pro rata with holders of other  securities  having the
contractual right to include such securities in the Registration Statement other
than  holders  of  securities  contractually  entitled  to  inclusion  of  their
securities  in such  Registration  Statement  by reason  of demand  registration
rights. Notwithstanding the foregoing, no such reduction shall reduce the amount
of Registrable  Securities  included in the registration below twenty-five (25%)
of the total amount of  securities  included in such  registration.  No right to
registration  of  Registrable  Securities  under  this  Section  2(b)  shall  be
construed to limit any  registration  required under Section 2(a) hereof.  If an
offering in connection with which an Investor is entitled to registration  under
this  Section  2(b)  is an  underwritten  offering,  then  each  Investor  whose
Registrable Securities are included in such Registration Statement shall, unless
otherwise agreed by the Company,  offer and sell such Registrable  Securities in
an underwritten offering using the same underwriter or underwriters and, subject
to the provisions of this  Agreement,  on the same terms and conditions as other
shares of Common Stock included in such underwritten offering.

      3. OBLIGATIONS OF THE COMPANY.

      In connection with the  registration of the  Registrable  Securities,  the
Company shall have the following obligations:

         (a) The Company shall respond  promptly to any and all comments made by
the staff of the SEC to the Registration Statement required by Section 2(a), and
shall  submit to the SEC  before the close of  business  on or before the second
business day immediately  following the business day on which the Company learns
(either  by  telephone  or in  writing)  that no  review  of  such  Registration
Statement  will be made by the SEC or that the  staff of the SEC has no  further
comments  on such  Registration  Statement,  as the case may be, a  request  for
acceleration of the effectiveness of such  Registration  Statement to a time and
date as soon as practicable.  The Company shall keep such Registration Statement
effective pursuant to Rule 415 at all times until such date as is the earlier of
(i) the date on which all of the Registrable  Securities have been sold and (ii)
the date on which all of the Registrable Securities may be immediately sold to

                                       -3-
<PAGE>

the public without registration or restriction pursuant to Rule 144(k) under the
Securities Act or any successor  provision (the  "Registration  Period"),  which
Registration  Statement  (including any  amendments or  supplements  thereto and
prospectuses  contained  therein and all  documents  incorporated  by  reference
therein) (i) shall comply in all material  respects with the requirements of the
Securities Act and the rules and regulations of the SEC  promulgated  thereunder
and (ii) shall not contain any untrue  statement  of a material  fact or omit to
state a material  fact required to be stated  therein,  or necessary to make the
statements  therein not  misleading.  The  financial  statements  of the Company
included in the Registration Statement or incorporated by reference therein will
comply  as to form in all  material  respects  with  the  applicable  accounting
requirements  and the published rules and regulations of the SEC applicable with
respect thereto.  Such financial  statements will be prepared in accordance with
U.S. generally accepted accounting principles,  consistently applied, during the
periods  involved  (except (i) as may be otherwise  indicated in such  financial
statements  or the  notes  thereto,  or (ii) in the  case of  unaudited  interim
statements,  to the extent they may not include footnotes or may be condensed on
summary  statements and fairly present in all material respects the consolidated
financial  position of the Company and its  consolidated  subsidiaries as of the
dates thereof and the  consolidated  results of their  operations and cash flows
for the periods then ended  (subject,  in the case of unaudited  statements,  to
immaterial year-end adjustments)).

         (b) The Company shall use its best efforts to promptly prepare and file
with  the  SEC  such  amendments  (including   post-effective   amendments)  and
supplements to the Registration  Statement and the prospectus used in connection
with the  Registration  Statement as may be  necessary to keep the  Registration
Statement  effective at all times during the  Registration  Period,  and, during
such period,  comply with the  provisions of the  Securities Act with respect to
the  disposition  of all  Registrable  Securities of the Company  covered by the
Registration  Statement  until such time as all of such  Registrable  Securities
have been disposed of in accordance with the intended  methods of disposition by
the seller or sellers thereof as set forth in the Registration Statement. In the
event the  number of  shares  available  under a  Registration  Statement  filed
pursuant to this Agreement is, for any three (3)  consecutive  trading days (the
last of such three (3)  trading  days being the  "Registration  Trigger  Date"),
insufficient to cover one hundred  percent (100%) of the Registrable  Securities
required to be included  thereunder (as a result of any adjustment to the number
of shares  issuable upon  conversion of the Notes or exercise of the Warrants or
the  occurrence of any other event not covered by Rule 416 under the  Securities
Act),  the  Company  shall  amend  the  Registration  Statement,  or  file a new
Registration Statement (on the short form available therefor, if applicable), or
both, so as to cover one hundred  percent (100%) of the  Registrable  Securities
required to be included thereunder, in each case, as soon as practicable, but in
any event within  fifteen (15) days after the  Registration  Trigger  Date.  The
Company  shall  use its best  efforts  to cause  such  amendment(s)  and/or  new
Registration  Statement to become effective as soon as practicable following the
filing thereof.

         (c) The  Company  shall  furnish  to each  Investor  whose  Registrable
Securities are included in the Registration  Statement and its legal counsel (i)
promptly  after the same is prepared  and publicly  distributed,  filed with the
SEC, or received by the Company, one copy of the Registration  Statement and any
amendment thereto, each preliminary prospectus and prospectus and each amendment
or supplement thereto, and, in the case of the Registration Statement referred

                                       -4-
<PAGE>

to in Section  2(a),  each letter  written by or on behalf of the Company to the
SEC or the staff of the SEC  (including,  without  limitation,  any  request  to
accelerate  the  effectiveness  of  the  Registration   Statement  or  amendment
thereto),  and each item of correspondence from the SEC or the staff of the SEC,
in each case relating to the Registration  Statement (other than any portion, if
any,  thereof  which  contains  information  for which the  Company  has  sought
confidential  treatment),  (ii) by the  next  business  day  after  the  date of
effectiveness of the Registration  Statement or any amendment  thereto, a notice
stating  that  the  Registration   Statement  or  amendment  has  been  declared
effective,  and  (iii)  such  number  of copies  of a  prospectus,  including  a
preliminary  prospectus,  and all  amendments and  supplements  thereto and such
other  documents as such Investor may reasonably  request in order to facilitate
the disposition of the Registrable Securities owned by such Investor.

         (d) The Company  shall use its best efforts to (i) register and qualify
the  Registrable  Securities  covered by the  Registration  Statement under such
other  securities or "blue sky" laws of such  jurisdictions in the United States
as each  Investor who holds  Registrable  Securities  being  offered  reasonably
requests,   (ii)  prepare  and  file  in  those  jurisdictions  such  amendments
(including post-effective  amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness  thereof during
the  Registration  Period,  (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration  Period,  and (iv) take all other actions  reasonably  necessary or
advisable to qualify the Registrable  Securities for sale in such jurisdictions;
provided,  however,  that  the  Company  shall  not be  required  in  connection
therewith  or as a  condition  thereto  to (a)  qualify  to do  business  in any
jurisdiction  where it would not  otherwise  be required to qualify but for this
Section 3(d), (b) subject itself to general  taxation in any such  jurisdiction,
(c) file a general consent to service of process in any such  jurisdiction,  (d)
provide any undertakings  that cause the Company undue expense or burden, or (e)
make any  change  in its  charter  or  bylaws,  which in each  case the Board of
Directors of the Company  determines to be contrary to the best interests of the
Company and its stockholders.

         (e) As promptly as practicable  after becoming aware of such event, the
Company  shall notify each  Investor by telephone and facsimile of the happening
of any  event,  of which the  Company  has  knowledge,  as a result of which the
prospectus included in the Registration  Statement,  as then in effect, includes
an untrue  statement  of a material  fact or omission  to state a material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading,  and,  use its best  efforts  promptly  to prepare a  supplement  or
amendment to the  Registration  Statement  to correct  such untrue  statement or
omission,  and deliver such number of copies of such  supplement or amendment to
each Investor as such Investor may reasonably request.

         (f) The Company  shall use its best efforts (i) to prevent the issuance
of any  stop  order or  other  suspension  of  effectiveness  of a  Registration
Statement (other than as permitted herein),  and, if such an order is issued, to
obtain  the  withdrawal  of  such  order  at  the  earliest  practicable  moment
(including  in  each  case  by  amending  or  supplementing   such  Registration
Statement)  and (ii) to notify each  Investor who holds  Registrable  Securities
being  sold  (or,  in  the  event  of an  underwritten  offering,  the  managing
underwriters)  of the issuance of such order and the resolution  thereof (and if
such Registration Statement is supplemented or amended, deliver such number of

                                       -5-
<PAGE>

copies of such  supplement  or amendment to each  Investor as such  Investor may
reasonably request).

         (g) The Company shall permit a single firm of counsel designated by the
Investors  to  review  the   Registration   Statement  and  all  amendments  and
supplements  thereto a  reasonable  period of time prior to its filing  with the
SEC,  and not  file any  document  in a form to which  such  counsel  reasonably
objects.

         (h) The Company shall make generally  available to its security holders
as soon as practical, but not later than ninety (90) days after the close of the
period  covered  thereby,  an earnings  statement  (in form  complying  with the
provisions of Rule 158 under the Securities Act) covering a twelve-month  period
beginning  not later than the first day of the  Company's  fiscal  quarter  next
following the effective date of the Registration Statement which compliance will
be met through the Company's  filing,  on an appropriate  form, the  appropriate
report of the Company as required by the  Securities  Exchange  Act of 1934,  as
amended,  and the rules and  regulations  thereunder,  or any similar  successor
statute (collectively, the "Exchange Act").

         (i) The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company unless (i) disclosure
of such  information  is necessary  to comply with  federal or state  securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement  or omission in any  Registration  Statement,  (iii) the release of
such  information is ordered  pursuant to a subpoena or other order from a court
or governmental body of competent  jurisdiction,  (iv) such information has been
made generally  available to the public other than by disclosure in violation of
this or any  other  agreement,  or (v) such  Investor  consents  to the form and
content of any such disclosure.  The Company agrees that it shall, upon learning
that disclosure of such information  concerning an Investor is sought in or by a
court or  governmental  body of competent  jurisdiction  or through other means,
give prompt notice to such Investor prior to making such  disclosure,  and allow
the  Investor,  at its  expense,  to  undertake  appropriate  action to  prevent
disclosure of, or to obtain a protective order for, such information.

         (j) The Company shall use its best efforts to promptly either (i) cause
all of the Registrable  Securities  covered by the Registration  Statement to be
listed on each  national  securities  exchange on which  securities  of the same
class or series issued by the Company are then listed, if any, if the listing of
such Registrable  Securities is then permitted under the rules of such exchange,
or  (ii)  secure  the  designation  and  quotation  of all  of  the  Registrable
Securities  covered by the  Registration  Statement on each automated  quotation
system on which securities of the same class or series issued by the Company are
then  quoted,  if any, if the  designation  and  quotation  of such  Registrable
Securities is then permitted under the rules of such automated quotation system,
and,  without  limiting  the  generality  of the  foregoing,  to arrange  for or
maintain at least two market makers to register with the National Association of
Securities Dealers, Inc. as such with respect to such Registrable Securities.

                                       -6-
<PAGE>

         (k) The Company shall provide a transfer agent and registrar, which may
be a single entity, for the Registrable  Securities not later than the effective
date of the Registration Statement.

         (l) The Company shall cooperate with the Investors who hold Registrable
Securities  being offered to facilitate the timely  preparation  and delivery of
certificates (not bearing any restrictive legends to the extent permitted by the
Securities Purchase Agreement) representing Registrable Securities to be offered
pursuant to the  Registration  Statement and enable such  certificates  to be in
such  denominations  or  amounts,  as the  case  may be,  as the  Investors  may
reasonably request and registered in such names as the Investors may request.

         (m) At the request of any Investor,  the Company shall prepare and file
with  the  SEC  such  amendments  (including   post-effective   amendments)  and
supplements  to a Registration  Statement and the prospectus  used in connection
with such Registration Statement as may be necessary in order to change the plan
of distribution set forth in such Registration Statement.

         (n) The Company  shall  comply with all  applicable  laws  related to a
Registration  Statement and offering and sale of securities  and all  applicable
rules and  regulations  of  governmental  authorities  in  connection  therewith
(including, without limitation, the Securities Act and the Exchange Act).

         (o) From and after the date of this  Agreement,  the Company shall not,
and shall not agree to,  allow the holders of any  securities  of the Company to
include any of their  securities  which are not  Registrable  Securities  in the
Registration  Statement under Section 2(a) hereof or any amendment or supplement
thereto  under  Section  3(b)  hereof  without  the  consent of the holders of a
majority in interest of the Registrable Securities.

      4.  OBLIGATIONS OF THE INVESTORS.  In connection with the  registration of
the Registrable Securities, the Investors shall have the following obligations:

         (a) It shall be a condition precedent to the obligations of the Company
to complete  the  registration  pursuant to this  Agreement  with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information  regarding  itself,  the Registrable  Securities
held by it and the intended method of disposition of the Registrable  Securities
held by it as shall be reasonably  required to effect the  registration  of such
Registrable  Securities and shall execute such documents in connection with such
registration as the Company may reasonably  request.  At least five trading days
prior to the first anticipated  filing date of the Registration  Statement,  the
Company shall notify each Investor of the information the Company  requires from
each such Investor.

         (b) Each Investor,  by such  Investor's  acceptance of the  Registrable
Securities,  agrees to cooperate with the Company as reasonably requested by the
Company  in  connection  with the  preparation  and  filing of any  Registration
Statement  pursuant to this  Agreement  under which such Investor has elected to
include any of such Investor's Registrable Securities.

                                       -7-
<PAGE>

         (c) Each  Investor  agrees  that,  upon  receipt of any notice from the
Company of the  happening of any event of the kind  described  in Section  3(e),
such Investor will immediately discontinue disposition of Registrable Securities
pursuant to the  Registration  Statement  covering such  Registrable  Securities
until  such  Investor's  receipt of the  copies of the  supplemented  or amended
prospectus contemplated by Section 3(e) and, if so directed by the Company, such
Investor shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a  certificate  of  destruction)  all copies in such
Investor's  possession,  of the prospectus covering such Registrable  Securities
current at the time of receipt of such notice.  Notwithstanding  anything to the
contrary,  subject to compliance with  applicable  laws, the Company shall cause
the transfer agent for the Registrable  Securities to deliver  unlegended shares
of Common Stock to a transferee of an Investor in  accordance  with the terms of
the Notes and Warrants in  connection  with any sale of  Registrable  Securities
with  respect to which such  Investor has entered into a contract for sale prior
to receipt of such notice and for which such Investor has not yet settled.

      5.  EXPENSES OF  REGISTRATION.  All  reasonable  expenses  incurred by the
Company or the Investors (but only for reasonable attorney's fees of one counsel
for the Investors) in connection with  registrations,  filings or qualifications
pursuant  to  Sections  2  and  3  above,  including,  without  limitation,  all
registration, listing and qualifications fees, printers and accounting fees, the
fees and disbursements of counsel for the Company, the fees and disbursements of
one counsel  selected  by the  Investors,  and the  underwriting  discounts  and
commissions,  shall be borne by the Company. In addition,  the Company shall pay
all of the  Investors'  reasonable  costs and  expenses  (including  legal fees)
incurred  in  connection  with the  enforcement  of the rights of the  Investors
hereunder.

      6. INDEMNIFICATION.  In the event any Registrable  Securities are included
in a Registration Statement under this Agreement:

         (a) To the extent  permitted by law, the Company will  indemnify,  hold
harmless and defend (i) each Investor who holds such Registrable Securities, and
(ii) the directors,  officers,  partners,  members, employees and agents of such
Investor and each person who controls any Investor within the meaning of Section
15 of the  Securities Act or Section 20 of the Exchange Act, if any,  (each,  an
"Investor  Indemnified  Person"),  against any joint or several losses,  claims,
damages,   liabilities  or  expenses   (collectively,   together  with  actions,
proceedings  or inquiries by any  regulatory  or  self-regulatory  organization,
whether commenced or threatened,  in respect thereof,  "Claims") to which any of
them may become  subject  insofar as such Claims arise out of or are based upon:
(i) any untrue  statement or alleged  untrue  statement of a material  fact in a
Registration  Statement or the omission or alleged  omission to state  therein a
material fact required to be stated or necessary to make the statements  therein
not  misleading,  (ii) any untrue  statement  or alleged  untrue  statement of a
material  fact  contained  in any  preliminary  prospectus  if used prior to the
effective  date  of such  Registration  Statement,  or  contained  in the  final
prospectus  (as  amended or  supplemented,  if the Company  files any  amendment
thereof or supplement  thereto with the SEC) or the omission or alleged omission
to state  therein  any  material  fact  necessary  to make the  statements  made
therein,  in light of the circumstances  under which the statements therein were
made, not misleading, or (iii) any violation or alleged violation by the Company
of the  Securities  Act, the Exchange  Act,  any other law,  including,  without
limitation, any state securities law, or any rule or regulation thereunder

                                       -8-
<PAGE>

relating to the offer or sale of the Registrable  Securities (the matters in the
foregoing  clauses (i) through  (iii) being  collectively  referred to herein as
"Violations").  Subject  to the  restrictions  set  forth in  Section  6(c) with
respect  to the  number  of legal  counsel,  the  Company  shall  reimburse  the
Investors and each other Investor Indemnified Person,  promptly as such expenses
are  incurred and are due and payable,  for any  reasonable  legal fees or other
reasonable  expenses  incurred  by  them in  connection  with  investigating  or
defending  any such Claim.  Notwithstanding  anything to the contrary  contained
herein, the indemnification  agreement contained in this Section 6(a): (i) shall
not apply to a Claim  arising out of or based upon a Violation  which  occurs in
reliance upon and in  conformity  with  information  furnished in writing to the
Company  by  such  Investor   Indemnified   Person  expressly  for  use  in  the
Registration Statement or any such amendment thereof or supplement thereto; (ii)
shall not apply to amounts paid in settlement of any Claim if such settlement is
effected  without the prior written consent of the Company,  which consent shall
not be  unreasonably  withheld;  and  (iii)  with  respect  to  any  preliminary
prospectus, shall not inure to the benefit of any Investor Indemnified Person if
the untrue  statement or omission of material fact contained in the  preliminary
prospectus was corrected on a timely basis in the prospectus, as then amended or
supplemented,  if such  corrected  prospectus  was timely made  available by the
Company pursuant to Section 3(c) hereof, and the Investor Indemnified Person was
promptly advised in writing not to use the incorrect prospectus prior to the use
giving rise to a Violation and such Investor Indemnified Person, notwithstanding
such  advice,  used it.  Such  indemnity  shall  remain in full force and effect
regardless of any investigation made by or on behalf of the Investor Indemnified
Person and shall  survive the  transfer  of the  Registrable  Securities  by the
Investors pursuant to Section 9 hereof.

      (b) In connection with any Registration  Statement in which an Investor is
participating, each such Investor agrees severally and not jointly to indemnify,
hold harmless and defend, to the same extent and in the same manner set forth in
Section 6(a), the Company, each of its directors, each of its officers who signs
the Registration Statement,  its employees,  agents and each person, if any, who
controls the Company  within the meaning of Section 15 of the  Securities Act or
Section 20 of the Exchange  Act, and any other  stockholder  selling  securities
pursuant to the  Registration  Statement or any of its  directors or officers or
any person who controls such  stockholder  within the meaning of the  Securities
Act or the  Exchange Act (each,  a "Company  Indemnified  Person"),  against any
Claims to which any of them may become subject  insofar as such Claims arise out
of or are based upon any Violation,  in each case to the extent (and only to the
extent)  that such  Violation  occurs in reliance  upon and in  conformity  with
written information  furnished to the Company by such Investor expressly for use
in connection with such Registration Statement; and subject to Section 6(c) such
Investor will reimburse any legal or other  expenses  (promptly as such expenses
are incurred and are due and payable)  reasonably incurred by them in connection
with  investigating  or defending any such Claim;  provided,  however,  that the
indemnity  agreement  contained  in this Section 6(b) shall not apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior
written  consent  of such  Investor,  which  consent  shall not be  unreasonably
withheld;  provided,  further,  however, that the Investor shall be liable under
this Agreement  (including this Section 6(b) and Section 7) for only that amount
as does not exceed the net  proceeds  actually  received  by such  Investor as a
result  of the sale of  Registrable  Securities  pursuant  to such  Registration
Statement.  Such indemnity  shall remain in full force and effect  regardless of
any investigation made by or on behalf of such Company Indemnified

                                       -9-
<PAGE>

Person and shall  survive the  transfer  of the  Registrable  Securities  by the
Investors pursuant to Section 9 hereof. Notwithstanding anything to the contrary
contained herein, the  indemnification  agreement contained in this Section 6(b)
with respect to any preliminary prospectus shall not inure to the benefit of any
Company  Indemnified Person if the untrue statement or omission of material fact
contained in the  preliminary  prospectus was corrected on a timely basis in the
prospectus, as then amended or supplemented.

      (c) Promptly after receipt by any party entitled to indemnification  under
this  Section 6 of notice  of the  commencement  of any  action  (including  any
governmental  action),  such  indemnified  party  shall,  if a Claim in  respect
thereof is to made against any indemnifying  party under this Section 6, deliver
to the indemnifying party a written notice of the commencement  thereof, and the
indemnifying  party shall have the right to  participate  in, and, to the extent
the indemnifying  party so desires,  jointly with any other  indemnifying  party
similarly  noticed,  to assume  control  of the  defense  thereof  with  counsel
mutually  satisfactory  to the  indemnifying  party and the  indemnified  party;
provided,  however, that such indemnifying party shall not be entitled to assume
such  defense  and an  indemnified  party shall have the right to retain its own
counsel with the fees and expenses to be paid by the indemnifying  party, if, in
the  reasonable  opinion of counsel  retained  by the  indemnifying  party,  the
representation  by such counsel of the  indemnified  party and the  indemnifying
party would be  inappropriate  due to actual or potential  conflicts of interest
between such indemnified  party and any other party  represented by such counsel
in such proceeding or the actual or potential  defendants in, or targets of, any
such action include both the indemnified  party and the  indemnifying  party and
any  such  indemnified  party  reasonably  determines  that  there  may be legal
defenses  available to such  indemnified  party which are in conflict with those
available to such indemnifying  party. The indemnifying party shall pay for only
one separate legal counsel for the indemnified  parties,  and such legal counsel
shall be selected by Investors holding a majority in interest of the Registrable
Securities included in the Registration Statement to which the Claim relates (if
the parties  entitled to  indemnification  hereunder  are  Investor  Indemnified
Persons) or by the Company (if the parties entitled to indemnification hereunder
are Company Indemnified  Persons).  The failure to deliver written notice to the
indemnifying  party within a  reasonable  time of the  commencement  of any such
action  shall  not  relieve  such  indemnifying  party of any  liability  to the
indemnified  party  under  this  Section  6,  except  to  the  extent  that  the
indemnifying party is actually  prejudiced in its ability to defend such action.
The  indemnification  required  by  this  Section  6 shall  be made by  periodic
payments  of the  amount  thereof  during  the  course of the  investigation  or
defense,  as such expense,  loss, damage or liability is incurred and is due and
payable.

      7.  CONTRIBUTION.  To the extent any  indemnification  by an  indemnifying
party is prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable under Section 6 to the fullest extent  permitted by law as is appropriate
to reflect the relative fault of the  indemnifying  party,  on the one hand, and
the indemnified  party, on the other hand, with respect to the Violation  giving
rise to the applicable Claim; provided,  however, that (i) no contribution shall
be made  under  circumstances  where the maker  would not have been  liable  for
indemnification under the fault standards set forth in Section 6, (ii) no person
guilty of fraudulent  misrepresentation  (within the meaning of Section 12(f) of
the  Securities  Act)  shall be  entitled  to  contribution  from any  seller of
Registrable Securities who was not guilty of such fraudulent misrepresentation,

                                      -10-
<PAGE>

and (iii) contribution  (together with any  indemnification or other obligations
under this Agreement) by any seller of Registrable  Securities  shall be limited
in amount to the net amount of proceeds received by such seller from the sale of
such Registrable Securities.

      8. REPORTS UNDER THE EXCHANGE ACT. With a view to making  available to the
Investors the benefits of Rule 144  promulgated  under the Securities Act or any
other  similar  rule or  regulation  of the SEC that may at any time  permit the
Investors to sell  securities of the Company to the public without  registration
("Rule 144"), the Company agrees to:

         (a) file with the SEC in a timely  manner  and make and keep  available
all reports and other documents required of the Company under the Securities Act
and the Exchange Act so long as the Company remains subject to such requirements
(it being  understood that nothing herein shall limit the Company's  obligations
under  Section 4(c) of the  Securities  Purchase  Agreement)  and the filing and
availability  of such reports and other documents is required for the applicable
provisions of Rule 144; and

         (b)  furnish to each  Investor  so long as such  Investor  owns  Notes,
Warrants  or  Registrable  Securities,  promptly  upon  request,  (i) a  written
statement by the Company that it has complied with the reporting requirements of
Rule 144,  the  Securities  Act and the  Exchange  Act,  (ii) a copy of the most
recent  annual or  quarterly  report of the Company  and such other  reports and
documents so filed by the Company,  and (iii) such other  information  as may be
reasonably  requested to permit the Investors to sell such securities under Rule
144 without registration.

      9.  ASSIGNMENT  OF  REGISTRATION  RIGHTS.  The  rights  of  the  Investors
hereunder,  including  the  right  to  have  the  Company  register  Registrable
Securities pursuant to this Agreement, shall be automatically assignable by each
Investor to any  transferee of all or any portion of the Notes,  the Warrants or
the  Registrable  Securities  if: (a) the  Investor  agrees in writing  with the
transferee  or assignee to assign such rights,  and a copy of such  agreement is
furnished  to the Company  after such  assignment;  (b) the Company is furnished
with written notice of (i) the name and address of such  transferee or assignee,
and (ii) the securities with respect to which such registration rights are being
transferred or assigned; (c) following such transfer or assignment,  the further
disposition of such securities by the transferee or assignee is restricted under
the Securities Act and applicable  state  securities laws; (d) the transferee or
assignee  agrees in writing for the benefit of the Company to be bound by all of
the provisions  contained herein;  and (e) such transfer shall have been made in
accordance  with  the  applicable   requirements  of  the  Securities   Purchase
Agreement,  the  Notes  and  the  Warrants,  as  applicable.  In  addition,  and
notwithstanding anything to the contrary contained in this Agreement, the Notes,
the Warrants and the  Registrable  Securities may be pledged,  and all rights of
the Investors under this Agreement or any other agreement or document related to
the transactions contemplated hereby may be assigned, without further consent of
the Company,  to a bona fide pledgee in connection with an Investor's  margin or
brokerage account.

      10. AMENDMENT OF REGISTRATION RIGHTS.  Provisions of this Agreement may be
amended and the  observance  thereof  may be waived  (either  generally  or in a
particular instance and either retroactively or prospectively) only with the

                                      -11-
<PAGE>

written  consent of the  Company and  Investors  who hold at least a majority in
interest of the  Registrable  Securities  or, in the case of a waiver,  with the
written consent of the party charged with the enforcement of any such provision;
provided,  however,  that no  consideration  shall be paid to an Investor by the
Company in connection  with an amendment  hereto unless each Investor  similarly
affected by such amendment  receives a pro-rata amount of consideration from the
Company.  Any amendment or waiver  effected in  accordance  with this Section 10
shall be binding upon each Investor and the Company.

      11. MISCELLANEOUS.

         (a) A  person  or  entity  is  deemed  to be a  holder  of  Registrable
Securities  whenever  such  person or entity  owns of  record  such  Registrable
Securities.  If  the  Company  receives  conflicting  instructions,  notices  or
elections  from  two or more  persons  or  entities  with  respect  to the  same
Registrable  Securities,  the Company shall act upon the basis of  instructions,
notice  or  election  received  from the  registered  owner of such  Registrable
Securities.

         (b) Any notices  required or  permitted  to be given under the terms of
this  Agreement  shall be sent by certified or registered  mail (return  receipt
requested),  or  by a  nationally  recognized  overnight  delivery  service,  or
delivered  personally  or by  courier  or by  confirmed  telecopy,  and shall be
effective  five (5) days after being placed in the mail, if mailed  certified or
registered  mailed,  or one (1) day  after  being  delivered  to the  nationally
recognized  overnight  delivery  service,  if delivered in such manner,  or upon
receipt  or  refusal  of  receipt,  if  delivered  personally  or by  courier or
confirmed  telecopy,  in each case addressed to a party.  The addresses for such
communications shall be:

                (i) if to the Company:

                     P-Com, Inc.
                     3175 South Winchester Blvd.
                     Campbell, CA 95008
                     Telephone: (408) 866-3666
                     Facsimile:  (408) 866-3511
                     Attention:  Chief Executive Officer

                     with a copy simultaneously transmitted by like means to:

                     Sheppard Mullin Richter & Hampton LLP
                     800 Anacapa Street
                     Santa Barbara, CA  93101
                     Telephone: (805) 879-1812
                     Facsimile:  (805) 568-1955
                     Attention:  Theodore R. Maloney, Esq.

                (ii) if to any Investor,  at such address as such Investor shall
have  provided in writing to the Company,  or at such other address as each such
party furnishes by notice given in accordance with this Section 11(b).

                                      -12-
<PAGE>

         (c)  Failure of any party to  exercise  any right or remedy  under this
Agreement or otherwise,  or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

         (d) This  Agreement  shall be governed by and  construed in  accordance
with the laws of the State of Delaware  applicable  to contracts  made and to be
performed  in the State of  Delaware.  The Company  irrevocably  consents to the
jurisdiction of the United States federal courts and the state courts located in
the State of Delaware in any suit or  proceeding  based on or arising under this
Agreement  and  irrevocably  agrees  that all  claims in respect of such suit or
proceeding may be determined in such courts. The Company  irrevocably waives the
defense of an inconvenient  forum to the maintenance of such suit or proceeding.
The Company  further agrees that service of process upon the Company,  mailed by
first class mail shall be deemed in every respect  effective  service of process
upon the Company in any such suit or proceeding. Nothing herein shall affect the
Investors'  right to serve  process in any other  manner  permitted  by law. The
Company  agrees  that a  final  non-appealable  judgment  in any  such  suit  or
proceeding  shall be conclusive  and may be enforced in other  jurisdictions  by
suit on such judgment or in any other lawful manner.

         (e) This Agreement,  the Securities  Purchase Agreement  (including all
schedules  and  exhibits  thereto),  the  Notes,  the  Warrants  and  the  other
Transaction  Documents  constitute the entire agreement among the parties hereto
with  respect  to  the  subject   matter  hereof  and  thereof.   There  are  no
restrictions,  promises, warranties or undertakings,  other than those set forth
or referred to herein and  therein.  This  Agreement,  the  Securities  Purchase
Agreement, the Notes, the Warrants and the other Transaction Documents supersede
all prior agreements and understandings among the parties hereto with respect to
the subject matter hereof and thereof.

         (f) Subject to the  requirements  of Section 9 hereof,  this  Agreement
shall inure to the benefit of and be binding upon the  successors and assigns of
each of the parties hereto.

         (g) The headings in this  Agreement  are for  convenience  of reference
only and shall not limit or otherwise affect the meaning hereof.

         (h) This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall  constitute one and the
same agreement.  This Agreement,  once executed by a party,  may be delivered to
the other party hereto by  facsimile  transmission  of a copy of this  Agreement
bearing the signature of the party so delivering this Agreement.

         (i) Each party shall do and perform, or cause to be done and performed,
all such further acts and things,  and shall  execute and deliver all such other
agreements,  certificates,  instruments  and  documents,  as the other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

         (j) All consents,  approvals and other determinations to be made by the
Investors pursuant to this Agreement shall be made by the Investors holding

                                      -13-
<PAGE>

a majority in interest of the Registrable Securities (determined as if Notes and
Warrants then  outstanding  had been converted into or exercised for Registrable
Securities) held by all Investors.

         (k) The  initial  number  of  Registrable  Securities  included  on any
Registration Statement and each increase to the number of Registrable Securities
included  thereon shall be allocated  pro rata among the Investors  based on the
number  of  Registrable  Securities  held by each  Investor  at the time of such
establishment  or  increase,  as the case may be (except as to any  Investor who
does  not  elect  to  include  any of  such  Investor's  Registrable  Securities
thereunder).  In the event an Investor  shall sell or otherwise  transfer any of
such holder's Registrable  Securities,  each transferee shall be allocated a pro
rata portion of the number of Registrable  Securities included on a Registration
Statement  for such  transferor.  Any  shares  of  Common  Stock  included  on a
Registration  Statement and which remain allocated to any person or entity which
does not hold any  Registrable  Securities  shall be allocated to the  remaining
Investors, pro rata based on the number of shares of Registrable Securities then
held by such  Investors.  For the avoidance of doubt,  the number of Registrable
Securities held by any Investor shall be determined as if all Notes and Warrants
then outstanding were converted into or exercised for Registrable Securities.

         (l) Each party to this Agreement has  participated  in the  negotiation
and  drafting of this  Agreement.  As such,  the  language  used herein shall be
deemed to be the language  chosen by the parties  hereto to express their mutual
intent, and no rule of strict  construction will be applied against any party to
this Agreement.

         (m) For purposes of this  Agreement,  the term "business day" means any
day other than a Saturday or Sunday or a day on which  banking  institutions  in
the  State  of New  York are  authorized  or  obligated  by law,  regulation  or
executive order to close,  and the term "trading day" means any day on which the
principal  securities  exchange or trading market where the Common Stock is then
listed or traded, is open for trading.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -14-
<PAGE>

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

P-COM, INC.

By:      /s/ Daniel W. Rumsey
    -------------------------------------------------
Name:  Daniel W. Rumsey
Title: Vice President

INITIAL INVESTOR:

NORTH SOUND LEGACY FUND LLC

By:      /s/ Andrew Wilder
    -------------------------------------------------
Name:  Andrew Wilder
Title: Chief Financial Officer

<PAGE>

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

P-COM, INC.

By:      /s/ Daniel W. Rumsey
    ----------------------------------------------------------
Name:  Daniel W. Rumsey
Title: Vice President

INITIAL INVESTOR:

NORTH SOUND LEGACY INSTITUTIONAL FUND LLC

By:      /s/ Andrew Wilder
    -------------------------------------------------
Name:  Andrew Wilder
Title: Chief Financial Officer

<PAGE>

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

P-COM, INC.

By:      /s/ Daniel W. Rumsey
    ----------------------------------------------------------
Name:  Daniel W. Rumsey
Title: Vice President

INITIAL INVESTOR:

NORTH SOUND LEGACY INTERNATIONAL LTD.

By:      /s/ Andrew Wilder
    -------------------------------------------------
Name:  Andrew Wilder
Title: Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]