Document:

<PAGE>

                                                                    EXHIBIT 10.2

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been
omitted pursuant to a request for confidential treatment and, where applicable,
has been marked with an asterisk to denote where omissions have been made. The
confidential material has been filed separately with the Commission.

                         PURCHASE AND SUPPLY AGREEMENT

                                    BETWEEN

              LEXAR MEDIA, INC. AND SAMSUNG ELECTRONICS CO., LTD.

  This Purchase and Supply Agreement (the "Agreement") is made and entered into
                                           ---------
  as of this 29th day of March, 2001 ("Effective Date") between Lexar Media,
                                       --------------
  Inc., a Delaware corporation having a place of business at 47421 Bayside
  Parkway, Fremont, CA 94538 ("Lexar"), and Samsung Electronics, Co., Ltd.
                               -----
  ("Samsung") a corporation of South Korea having its principal place of
  ---------
  business at San #24 Nongseo-Ri, Kiheung-Eup, Yongin-City, Kyunggi-Do, South
  Korea.

                                   RECITALS

  A.  Samsung is a leading supplier of NAND Flash Memory Chips and Smart Media
  (both of the foregoing as defined herein), and wishes to provide committed
  volumes of NAND Flash Memory Chips and Smart Media to Lexar at committed sales
  prices, all as described in this Agreement.

  B.  Lexar wishes to obtain NAND Flash Memory Chips and Smart Media from
  Samsung, all as described in this Agreement.

  C.  Lexar has developed Lexar Controllers (as defined herein) that it wishes
  to make available to Samsung, all as described in this Agreement.

  D.  Contemporaneously with the execution of this Agreement, Samsung and Lexar
  are executing a Patent License Agreement ("License Agreement") pursuant to
                                             -----------------
  which Samsung receives a non-exclusive license to certain of Lexar's
  proprietary technology to manufacture, market and sell certain flash memory
  products.

  E.  Contemporaneously with the execution of this Agreement, Lexar and Samsung
  Semiconductor, Inc., ("SSI"), a wholly-owned subsidiary of Samsung, are
                         ---
  entering into a Consignment Contract ("Consignment Contract") pursuant to
                                         --------------------
  which Lexar will purchase from SSI certain flash memory.

  1.  Headings and Definitions.

  1.1 Interpretation.  All headings used in this Agreement are inserted for
      --------------
  convenience only and are not intended to affect the meaning or interpretation
  of this Agreement or any

                                       1
<PAGE>

  section or clause of this Agreement. References to "third party" or "third
  parties" will not mean either party. The meanings given to terms defined in
  this Agreement are equally applicable to both the singular and the plural
  forms of such terms.

  1.2     Definitions.  Terms used and/or defined in the Schedules attached to
          -----------
  this Agreement, that are not otherwise defined in this Agreement, will have
  the meanings as set forth in those Schedules for the purposes of those
  Schedules only.  For purposes of this Agreement, the following definitions
  apply:

          "Affiliate" means, with respect to any entity, any other entity that
           ---------
  controls, is controlled by or is under common control with such entity.  For
  purposes of this Agreement, an entity shall be in "control" of an entity if it
  owns or controls at least fifty percent (50%) of the equity securities of the
  subject entity entitled to vote in the election of directors (or, in the case
  of an entity that is not a corporation, for the election of the corresponding
  managing authority), or otherwise has the power to control the management and
  policies of such other entity.

          "Average Monthly Sales" means the average monthly bits of NAND Flash
           ---------------------
  Memory Chips, or Smart Media as applicable, sold by Samsung or its Affiliates
  anywhere in the World during the three (3) calendar month period immediately
  proceeding Lexar's request.

          "Compact Flash Card" means a flash memory storage device that meets
           ------------------
  the Compact Flash Specifications.

          "Compact Flash Controller" means a device (whether implemented in
           ------------------------
  firmware, hardware and/or software) that controls the operation of a Compact
  Flash Card.

          "Compact Flash Specifications" means the specifications for a certain
           ----------------------------
  flash memory storage device developed by the Compact Flash Association (as
  such specifications are from time to time modified or replaced by the Compact
  Flash Association in its sole discretion).

          "Consignment Contract" has the meaning set forth in the Recitals.
           --------------------

          "Lexar Controller" means a Compact Flash Controller develop by Lexar.
           ----------------

          "License Agreement" has the meaning set forth in the Recitals.
           -----------------

          "NAND Flash Memory Chip" means Samsung's "generally available" NAND
           ----------------------
  Flash Memory Chip, but excludes any combination, bundling or integration of
  such a chip with other products or devices.  However, generally available NAND
  Flash Memory Chip specifically excludes any chip requiring undue manufacturing
  burden (i.e., a yield of less than 50% of the Samsung's normal production
  yield).  NAND Flash Memory Chip also means and includes any of Samsung's
  comparable or equivalent replacement or successor products.

                                       2
<PAGE>

          "Reseller" means Samsung's sales agents outside the United States that
           --------
  purchase Samsung Products solely for purposes of reselling such Samsung
  Products to OEM's.  A reseller is not an entity that assembles or manufacture
  flash memory cards.

          "Reseller Price" means the actual sales price plus five percent (5%)
           --------------
  of such actual sales price.

          "Samsung Products" means NAND Flash Memory Chips and Smart Media.
           ----------------

          "Smart Media" means a flash memory storage device that meets the Smart
           -----------
  Media Specifications.

          "Smart Media Specifications" means the specifications for a certain
           --------------------------
  flash memory storage device developed by the Smart Media Association (as such
  specifications are from time to time modified or replaced by the Smart Media
  Association in its sole discretion).

          "SSI'' has the meaning set forth in the Recitals.
           ---

  2.      Purchase and Supply Commitments.

  2.1     NAND Flash Memory Chips Supply.  At Lexar's request, in each month of
          ------------------------------
  this Agreement Samsung shall sell and timely deliver (or cause SSI to sell and
  timely deliver) to Lexar substantially all the NAND Flash Memory Chips
  required by Lexar, provided that Samsung shall not be obligated to make
  available to Lexar any NAND Flash Memory Chips in excess of * percent (*%) of
  the Samsung's Average Monthly Sales.  The sale and delivery of such NAND Flash
  Memory Chips shall be made pursuant to the terms and conditions of this
  Agreement and the Consignment Contract, and Samsung hereby guarantees the
  performance of all of SSI's obligations under the Consignment Contract.  Lexar
  shall not sell any NAND Flash Memory Chips made available pursuant to the
  Consignment Contract as a stand-alone product without the prior written
  consent of Samsung or an Affiliate of Samsung.

  2.2     NAND Flash Memory Chips Purchase.  Subject to Section 5 of this
          --------------------------------
  Agreement, Lexar shall purchase all of its NAND Flash Memory Chips
  requirements from Samsung or its Affiliates up to the amounts committed by
  Samsung in Section 2.1, provided that Samsung or its Affiliates make and
  continue to make NAND Flash Memory Chips available to Lexar pursuant to the
  terms and conditions of this Agreement and the Consignment Contract.

  2.3     Smart Media Supply.  At Lexar's request, in each month of this
          ------------------
  Agreement Samsung shall sell and timely deliver (or cause SSI to sell and
  timely deliver) to Lexar all Smart Media requested by Lexar, up to * percent
  (*%) of the Average Monthly Sales of Smart Media sold by Samsung or its
  Affiliates anywhere in the world during the three (3) calendar month period
  immediately preceding Lexar's request.  The sale and delivery of

  * Material has been omitted and filed separately with the Commission

                                       3
<PAGE>

  such Smart Media shall be made pursuant to the terms and conditions of this
  Agreement and the Consignment Contract. Lexar shall not sell any Smart Media
  purchased pursuant to this Agreement to any customers for resale *.

  2.4     No Breach.  Samsung shall use its best efforts to make Samsung
          ---------
  Products available to Lexar pursuant to Sections 2.1 and 2.3, however,
  Samsung's failure to satisfy Lexar's requested volume shall not be considered
  a breach of this Agreement.  Furthermore, Samsung's failure to timely deliver
  all or portion of NAND Flash Memory Chips and/or Smart Media under Sections
  2.1 and 2.3, respectively on a particular purchase order, due to an equipment
  failure, process-related performance degradation and/or other unexpected
  occurrences temporarily affecting Samsung production capabilities shall not be
  considered a breach to the extent Samsung uses its best efforts to promptly
  restore the production conditions.  In the event of such a failure, Lexar may
  purchase NAND Flash Memory Chips and/or Smart Media from any third party in
  accordance with Section 5.2 of this Agreement.

  3.      Prices

  3.1     Samsung Products Prices.
          -----------------------

          (a) Samsung shall sell or cause SSI to sell Samsung Products to Lexar
  in the quantities described in Sections 2.1 and 2.3 at prices that are *.
  Without limiting the preceding sentence, throughout the term of this
  Agreement, Samsung shall ensure that: (i) the prices for Samsung Products
  offered or sold to Lexar shall be *; and (ii) during the first three (3) years
  of this Agreement, the prices to Lexar for Samsung Products offered in TSOP
  shall be *.  For the avoidance of doubt, the determination of the prices at
  which Samsung or its Affiliates offers or sells Samsung Products to any third
  party will account for any and all cash and non-cash consideration paid,
  rebated, credited or otherwise made available by Samsung or its Affiliates to
  any such third party.  However, the * shall not include any promotional sales
  covering uses of flash products in embedded applications.  For offers or sales
  of Samsung Products in a currency other than US Dollars, the price for such
  offer or sale shall be calculated by the average exchange rate for the
  proceeding three month as published by the Korea Exchange Bank.  Solely for
  the purposes of this Section 3.1, Samsung Products shall be deemed to have
  been sold to Lexar as is described in the Consignment Contract.

          (b) The * shall not apply to samples of Samsung Products that Samsung
  or its Affiliates provide to customers in quantities of less than one thousand
  (1000).

          (c) Without limiting the rights and remedies available to Lexar under
  this Agreement or at law or equity, if Samsung fails to sell or cause SSI to
  sell Samsung Products to Lexar at the * in accordance with the terms of
  subsection 3.1(a) above, Lexar will have the right to: (i) offset any amounts
  paid by Lexar in excess of the * to Samsung or its Affiliates for Samsung
  Products against any other amounts due and payable under this Agreement, the
  Consignment Contract or any other agreement between the parties or their
  Affiliates; or (ii) increase the prices at which Lexar sells Lexar Controllers
  to Samsung or its Affiliates pursuant to Section 3.2 by the amount of such
  excess; and (iii) credit the excess cost of any

   * Material has been omitted and filed separately with the Commission.

                                       4
<PAGE>

  Lexar purchase from a third party necessitated by any such failure against the
  applicable minimum purchase requirements set forth in Section 4.1 below.

          (d) Samsung reserves right to suspend or terminate the * obligations
  as set forth in Section 3.1 (a) and Consignment Contract in its entirety if
  Lexar purchases from Samsung less than * percent (*%) of Lexar's annual
  requirement of Samsung Products for reasons other than Samsung's inability to
  make Samsung Products available for purchase.

  3.2     Lexar Controllers Prices.  Provided that the parties agree on the
          ------------------------
  other general terms and conditions for the sale of Lexar Controllers to
  Samsung, Lexar shall sell Lexar Controllers to Samsung at prices that are *
  price for such Lexar Controllers offered or sold by Lexar or its Affiliates to
  any company anywhere in the world in the calendar month in which the Lexar
  Controllers are sold to Samsung.

  3.3     Taxes.  All stated prices are exclusive of any taxes, fees and duties
          -----
  or other amounts, however designated, and including without limitation value
  added and withholding taxes which are levied or based upon such charges, or
  upon this Agreement.

  4.      Minimum Purchase Commitments.

  4.1     Minimum Purchase.  Except as otherwise set forth in this Agreement,
          ----------------
  Lexar shall purchase a minimum of * Dollars ($*) worth of Samsung Products
  during the period of the first full six quarters (hereinafter "first purchase
  period") from the Effective Date and a minimum of * Dollars ($*) worth of
  Samsung Products during the period of the seventh to the twelfth quarters
  (hereinafter "second purchase period") from the Effective Date, provided that:
  (i) this Agreement has not been terminated; and (ii) Samsung has made all
  Samsung Products available as described in this Agreement and the Consignment
  Contract.  Lexar's obligations under this Section 4.1 shall not be effective
  if: (i) this Agreement is terminated as described herein; or (ii) Samsung
  fails to make Samsung Products available to Lexar as described in Section 5.2
  herein.  However, Samsung's failure to make Samsung Products available to
  Lexar in a given quarter shall not per se relieve Lexar of the minimum
  purchase obligations under this Section so long as Samsung satisfies Lexar's
  anticipated needs as forecasted in Section 2 of the Consignment Contract.
  Lexar shall have no obligation to purchase any minimum volume or amount of
  Smart Media.

  4.2     No Breach.  In no event shall Lexar's inability or failure to purchase
          ---------
  those amounts of Samsung Products described in Section 4.1 constitute a breach
  of this Agreement.  Samsung's sole and exclusive remedy for Lexar's inability
  or failure to purchase those amounts of Samsung Products described in Section
  4.1 shall be as set out in Sections 1.6 and 4.3 of the License Agreement.

  5.      Pricing and Performance Requirements.

  5.1     Pricing.  Notwithstanding the terms of Section 2.2, if the price of
          --------
  the NAND Flash Memory Chips offered to Lexar by Samsung or its Affiliates
  exceeds the price for

     *Material has been omitted and filed separately with the Commission.

                                       5
<PAGE>

  commercially available NAND flash memory chips or other substitutable non-
  volatile memory in equivalent volumes offered by another entity, Lexar shall
  notify Samsung in writing of such entity's price and Samsung or its Affiliates
  shall have one (1) business day from receipt of the notice to match or beat
  such price. If Samsung or its Affiliates fail to timely respond to the notice
  and to match or beat such price, then Lexar shall be entitled to purchase
  those volumes offered by such entity.

  5.2     Other Requirements.  Notwithstanding the terms of Section 2.2, Lexar
          ------------------
  may purchase NAND Flash Memory Chips from any third party, with no liability
  or obligation to Samsung or SSI of any kind, if at any time:

          (a) Samsung or its Affiliates do not offer Samsung Products for sale
  to Lexar that meet Lexar or its customer's requirements or if Samsung fails to
  timely deliver to Lexar for the reasons as described in Section 2.4 herein;

          (b) Samsung or its Affiliates do not offer for sale to Lexar any off-
  the shelf NAND Flash Memory Chips having standard performance specification as
  published in Samsung product data sheet that are generally offered to other
  Samsung customers.

          In any of the events set forth in Section 5.2 (a) - (b), inclusive,
  Lexar may exercise the remedies set forth in Section 3.1(c), as applicable.
  Otherwise, Samsung shall in good faith use its best efforts to meet Lexar's
  need for any products providing non-standard performance specification.

  6.      Mutual Cooperation.

  6.1     OEM Customers.  The parties shall use commercially reasonable efforts
          -------------
  to work together to sell Compact Flash Controllers to OEM customers, as to be
  agreed in writing by the parties.

  6.2     Joint Promotion.  The parties shall use commercially reasonable
          ---------------
  efforts to work together on the promotion of Lexar Controllers and Samsung's
  NAND Flash Memory Chips, as to be agreed in writing by the parties.

  6.4     Optimization of Products.  Lexar shall use commercially reasonable
          ------------------------
  efforts to qualify and optimize Lexar Controllers for Samsung's NAND Flash
  Memory Chips, as agreed in writing by the parties.

  6.5     Forecasting.  The parties shall meet on a quarterly basis to discuss
          -----------
  volume projections for the purchase of Samsung Products and Lexar Controllers
  over the following twelve (12) months.

  7.      Confidential Information.

                                       6
<PAGE>

  7.1     Definition of Confidential Information.  Lexar and Samsung acknowledge
          --------------------------------------
  that, in the course of performing their respective obligations hereunder, each
  may obtain information relating to the other and the other's products that is
  of a confidential and proprietary nature to such other party. "Confidential
                                                                 ------------
  Information" means confidential or proprietary information of either party
  -----------
  which is (i) designated with the legend "Confidential" or comparable legend in
  case of disclosure thereof in written, graphic, machine readable or other
  tangible form or (ii) designated "Confidential" at the disclosure thereof in
  other form and within thirty (30) calendar days after such disclosure set
  forth in a writing designated "Confidential" and forwarded to the receiving
  party. Confidential Information further includes without limitation the
  existence and terms of this Agreement.

  7.2     Exclusions.  Confidential Information does not include information
          ----------
  which (i) is or becomes public knowledge or is received by the other party
  without the fault or action of the other party or any breach of any
  confidentiality obligation; (ii) the other party can document was
  independently developed by it without use or access to the Confidential
  Information; or (iii) the other party can document was previously known to it
  prior to receipt of the Confidential Information.

  7.3     Obligation.  Each of Samsung and Lexar agrees that, during the term of
          ----------
  this Agreement and for a period of five (5) years thereafter, it will (i) use
  the other party's Confidential Information only in connection with fulfilling
  its rights and obligations under this Agreement; (ii) hold the other party's
  Confidential Information in strict confidence and exercise due care with
  respect to its handling and protection, consistent with its own policies
  concerning protection of its own Confidential Information of like importance
  but in no instance less than reasonable care, such due care including without
  limitation requiring its employees to execute non-disclosure agreements which
  provide protection of the other party's Confidential Information which is at
  least as protective as the terms and conditions of this Agreement; (iii) not
  disclose, divulge or publish the other party's Confidential Information except
  to such of its responsible directors, employees and consultants and legal and
  financial advisors who have a bona fide need to know to the extent necessary
  to fulfill such party's obligations under this Agreement or except to the
  extent such Confidential Information is required to be disclosed pursuant to
  applicable law, regulation or court order provided the other party uses
  reasonable efforts to give the party owning the Confidential Information
  sufficient notice of such required disclosure to allow the party owning the
  Confidential Information reasonable opportunity to object to and to take legal
  action to prevent such disclosure (or to request confidential treatment
  thereof); (iv) instruct all such employees, directors, consultants and
  advisors not to disclose the other party's Confidential Information to third
  parties, without the prior written permission of the other party. Each party
  may disclose Confidential Information of the other party: (i) to its legal and
  financial advisors, as necessary to obtain tax, legal and accounting advice;
  (ii) in connection with SEC filings; and (iii) to bona fide potential
  investors or acquirers in connection with a financing, merger, acquisition or
  similar transaction, provided that investors or acquirers are subject to,
  confidentiality obligations at least as restrictive as those contained herein.

                                       7
<PAGE>

  8.          Term and Termination.

  8.1         Term.  This Agreement shall commence on the Effective Date and
              ----
  shall continue for a period of * (*) years, unless extended by written
  agreement of both parties or unless sooner terminated as provided in this
  Section 8.

  8.2         Termination due to Samsung's Material Breach.  If Samsung
              --------------------------------------------
  materially breaches any term or condition of this Agreement or of the License
  Agreement and fails to cure that breach within thirty (30) calendar days after
  receiving written notice of the breach, then Lexar shall have the right to
  terminate this Agreement, terminate the licenses and other rights granted to
  Samsung under Sections 2.1 and 2.2 of the License Agreement, in each case, at
  any time after the end of such thirty (30) calendar day period.  Without
  limiting the foregoing, and without limiting the rights and remedies available
  to Lexar under this Agreement or at law or equity, during such thirty (30)
  calendar day period, Lexar will have the right: (i) to purchase NAND flash
  memory chips from any third party, with no liability or obligation to Samsung
  or SSI of any kind; and (ii) to exercise the remedies set forth in Section
  3.1(c), as applicable.

  8.3         Termination due to Lexar's Material Breach.  If Lexar materially
              ------------------------------------------
  breaches any term or condition of this Agreement or of the License Agreement
  and fails to cure that breach within thirty (30) calendar days after receiving
  written notice of the breach, Samsung shall have the right to terminate this
  Agreement at any time after the end of such thirty (30) calendar day period,
  and further have the right to extend the license at the terms as set forth in
  Section 2.1 (e) of the License Agreement.

  8.4         Lexar Termination due to Irreparable Impairment.  Lexar may, upon
              -----------------------------------------------
  thirty (30) days written notice, terminate this Agreement without any
  liability or obligation to Samsung in the event that Lexar's ability to make
  the minimum purchase commitment set out in Section 4.1 is irreparably impaired
  for any reason, including but not limited to the price guaranteed in Section
  3.1 frequently exceeding the generally available fair market price for NAND
  flash memory chips. In the event of such termination, Lexar shall be entitled
  to terminate the licenses and other rights granted to Samsung under Sections
  2.1 and 2.2 of the License Agreement.  However, if Lexar terminates the
  License Agreement pursuant to this section, Samsung shall be entitled to
  immediately extend the license at the terms as set forth in Section * of the
  License Agreement if Samsung has paid or pays within thirty (30) days of such
  termination a cumulative total of * dollars ($*) of the license fee under
  Section * of the License Agreement.

  8.5         Samsung Termination due to Irreparable Impairment.  Samsung may,
              --------------------------------------------------
  upon thirty (30) days written notice, terminate this Agreement without any
  liability or obligation (except for amounts owed to Lexar due to prior
  purchases) in the event that Samsung's ability to provide Samsung Products is
  irreparably impaired due to Samsung's inability, after using commercially
  reasonable efforts, to acquire necessary licenses from *.  In the event of
  such termination, Lexar shall be entitled to terminate the licenses and other
  rights granted to Samsung under Sections 2.1 and 2.2 of the License Agreement,
  and/or terminate the

     Material has been omitted and filed separately with the Commission.

                                       8
<PAGE>

  Consignment Contract. However, to the extent Samsung pays or has paid the
  entire * dollars ($*) of the license fee under Section * of the License
  Agreement, Samsung shall be entitled to immediately extend the license at the
  terms as set forth in Section * of the License Agreement.

  8.6         Termination upon Voluntary Bankruptcy.  If either party (a) seeks
              -------------------------------------
  the liquidation, reorganization, dissolution or winding up of itself (other
  than dissolution or winding up for the purposes of reconstruction or
  amalgamation) or the composition or readjustment of all or substantially all
  of its debts, (b) applies for or consent to the appointment of, or the taking
  of possession by, a receiver, custodian, trustee or liquidator of itself or of
  all or substantially all of its assets, (c) makes a general assignment for the
  benefit of its creditors, (d) commences a voluntary case under the bankruptcy
  code, or (e) files a petition for relief or otherwise seeks relief from or
  readjustment of its debts under any other law relating to bankruptcy,
  insolvency, reorganization, winding-up or composition or readjustment of debts
  (including, without limitation, consenting to the entry of an order for relief
  in an involuntary bankruptcy case against it) (such party, the "Filing
                                                                  ------
  Party"), then the other party to this Agreement shall have the right to
  -----
  terminate this Agreement upon written notice to the Filing Party, provided,
  however, that if any event described in the immediately preceding clause (e)
  occurs, no notice shall be required to the Filing Party and this Agreement
  shall terminate automatically upon the occurrence of such event without any
  further action.

  8.7         Termination upon Involuntary Bankruptcy.  If a proceeding or case
              ---------------------------------------
  is commenced against a party (the "Debtor Party") without the application or
                                     ------------
  consent of the Debtor Party and such proceeding or case continues undismissed
  for a period of ninety (90) calendar days from and after the commencement of
  such proceeding seeking any of the matters set forth in the immediately
  following clauses (a) through (c) or if an order, judgment or decree approving
  or ordering any of such matters is entered and continues unstayed in effect
  for a period of ninety (90) calendar days from and after the date its entry
  then, subject to the last sentence of this Section 8.9, the other party shall
  have the right to terminate this Agreement at any time after the end of such
  ninety (90) day period upon written notice to the Debtor Party:  (a)
  liquidation, reorganization, dissolution or winding up, or the composition or
  readjustment of all or substantially all of the Debtor Party's debts, (b) the
  appointment of a trustee, receiver, custodian, liquidator or the like of the
  Debtor Party or of all or substantially all of the Debtor Party's assets, or
  (c) similar relief for the Debtor Party from its debts or readjustment of its
  debts under any law relating to bankruptcy, insolvency, reorganization,
  winding up or composition or readjustment of debts.  Notwithstanding any other
  provision of this Section 8.9, if any event described in the immediately
  preceding clause (c) occurs, no notice shall be required to the Debtor Party
  and this Agreement shall terminate automatically upon the occurrence of such
  event without any further action.

  8.8         Obligations Upon Termination.  Upon any termination of this
              ----------------------------
  Agreement: (i) each party shall promptly pay the other party unpaid amounts
  due as of the termination based on sales of product occurring prior to the
  date of termination; and (ii) both Samsung and Lexar shall return or destroy
  all copies of the Confidential Information of the other party.

     Material has been omitted and filed separately with the Commission.

                                       9
<PAGE>

  8.9         Survival.  The following provisions shall survive any
              --------
  termination or expiration of this Agreement: 1.2, 7, 8.8, 8.9, 9.2, 10 and 11.

  9.          Audit and Reports.

  9.1         Monthly Reporting.  Each month, Samsung shall provide to Lexar a
              -----------------
  report detailing, on a month-by-month basis, its Average Monthly Sales by
  Samsung and its Affiliates anywhere in the world during the three (3) prior
  calendar months and its good faith, non-binding forecast of Average Monthly
  Sales it expects to sell during the present month and for six (6) calendar
  months into the future.

  9.2         Records and Auditing. Each party shall keep full, true, and
              --------------------
  accurate records and accounts, in accordance with generally-accepted
  accounting principles, of each offer or sale of any product, as necessary to
  verify compliance with that party's obligations to the other under this
  Agreement and the Consignment Contract. Without limiting the generality of the
  forgoing sentence or Samsung's obligations pursuant to Section 9.1 above, for
  a period of at least four (4) years following each offer to sell or sale of a
  NAND Flash Memory Chip or Smart Media, Samsung shall keep full, true, and
  accurate records and accounts, in accordance with generally-accepted
  accounting principles, of its Average Monthly Sales, but, in any event,
  Samsung will keep all such records (including without limitation customer
  purchase orders and invoices) that are reasonably required to enable Lexar to
  confirm Samsung's compliance with the terms of this Agreement. No more than
  two (2) times annually, each party shall make these records and accounts
  available to an independent certified public accountant selected by the other
  party, but reasonably acceptable to the first party, to determine if the first
  party has complied with its obligations under Sections 2 and 3 of this
  Agreement. The party being audited shall promptly refund any overpayments made
  by the other party as determined by the audit. If the audit reveals an
  overpayment of more than five percent (5%) of the amount that should have been
  paid by the party conducting the audit, the party being audited shall
  reimburse the auditing party all of its reasonable expenses related to the
  conduct of the audit.

  10.         Limitation of Liability.

  10.1        General Limitation of Damages.  IN NO EVENT SHALL EITHER PARTY BE
              -----------------------------
  LIABLE FOR LOSS OF USE, DATA OR PROFITS, INTERRUPTION OF BUSINESS OR ANY
  SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, ARISING
  OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED, ON ANY THEORY OF
  LIABILITY, WHETHER IN AN ACTION FOR CONTRACT, STRICT LIABILITY, TORT
  (INCLUDING NEGLIGENCE) OR OTHERWISE, AND WHETHER OR NOT SUCH PARTY HAS BEEN
  ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

                                       10
<PAGE>

  10.2    Severability.  EACH AND EVERY PROVISION OF THIS AGREEMENT WHICH
          ------------
  PROVIDES FOR A LIMITATION OF LIABILITY, DISCLAIMER OF WARRANTY OR EXCLUSION OF
  DAMAGES IS INTENDED BY THE PARTIES TO BE SEVERABLE AND INDEPENDENT OF ANY
  OTHER SUCH PROVISION.  FURTHER, IN THE EVENT THAT ANY REMEDY HEREUNDER IS
  DETERMINED TO HAVE FAILED OF ITS ESSENTIAL PURPOSE, ALL OTHER LIMITATIONS OF
  LIABILITY AND EXCLUSIONS OF DAMAGES SHALL REMAIN IN EFFECT.

  11.     General.
          --------

  11.1    Governing Law.  This Agreement shall be governed by and construed in
          -------------
  accordance with the laws of the State of California without regard to
  conflicts of laws rules or principles, and excluding the United Nations
  Convention on Contracts for the International Sale of Goods.  All actions
  brought by either party arising under or related to this Agreement shall be
  brought exclusively in the state and federal courts located in Santa Clara
  County, California, and the parties hereby irrevocably consent to personal
  jurisdiction and venue therein.

  11.2    Injunctive Relief.  Each of the parties acknowledges that unauthorized
          -----------------
  disclosure or use of the other party's Confidential Information or
  infringement or misappropriation of the other party's intellectual property
  rights could cause irreparable harm and significant injury that would be
  difficult to ascertain and may not be compensable by damages alone.
  Accordingly, the parties agree that, in addition to any and all legal
  remedies, each party shall be entitled to seek specific performance,
  injunction or other appropriate equitable relief for claims regarding
  intellectual property rights or Confidential Information.

  11.3    Assignment.  Neither party may assign this Agreement without the prior
          ----------
  written consent of the other, except that Lexar may assign or transfer its
  rights and obligations under this Agreement in the course of a merger,
  reorganization or acquisition of Lexar or all or substantially all of Lexar's
  assets related to the this Agreement without consent by Samsung.  Any
  assignment permitted hereunder will be subject to the written assent of the
  assignee to all of the terms and provisions of this Agreement.  Any attempted
  assignment in derogation of this section will be null and void.

  11.4    Modification and Waiver.  No modification to this Agreement, nor any
          -----------------------
  waiver of any rights, will be effective unless assented to in writing by the
  party to be charged, and the waiver of any breach or default shall not
  constitute a waiver of any other right hereunder or any subsequent breach or
  default.

  11.5    Notices.  Any required or permitted notices hereunder must be given in
          -------
  writing at the address of each party set forth below, or to such other address
  as either party may

                                       11
<PAGE>

  substitute by written notice to the other in the manner contemplated herein.
  Notices will be effective upon receipt.

  To Lexar:                                    To Samsung:
  Lexar Media, Inc.                            Samsung Electronics, Co., Ltd.
  47421 Bayside Parkway                        San #24, Kiheung-Eup, Yongin-City
  Fremont, CA 94538                            Kyunggi-Do 449-711 Korea
  Attention: Legal Department                  Attention: IP Team
  Phone: (510) 413-1200                        Phone: 82-31-209-3288
  Fax: (510) 413-1296                          Fax: 82-31 209-6054

  Copy to:
  Fenwick & West LLP
  Two Palo Alto Square
  Palo Alto, CA 94306
  Attn.: Larry Granatelli
  Phone:  (650) 494-0600
  Fax: (650) 494-1417

  11.6  Compliance with Law, including U.S. Export Laws.  Each party agrees to
        -----------------------------------------------
  comply with all applicable international, national, state, regional and local
  laws and regulations in performing its duties hereunder and in any of its
  dealings with respect to the technical information disclosed hereunder or
  direct products thereof.  Neither party shall export or re-export, directly or
  indirectly, any technical information disclosed hereunder or direct products
  thereof to any destination prohibited or restricted by the export control laws
  and regulations of the United States, including the U.S. Export Administration
  Regulations, without the prior authorization from the appropriate governmental
  authorities.

  11.7  Force Majeure.  Neither party shall be responsible for delay or failure
        -------------
  in performance to the extent caused by any government act, law, regulation,
  order or decree, by communication line or power failures beyond its control,
  or by fire, flood or other natural disasters, nor shall any such delay or
  failure be considered to be a breach of this Agreement, provided that such
  party shall use commercially reasonable efforts to resume performance as soon
  as reasonably practicable thereafter.

  11.8  Counterparts.   This Agreement may be executed in multiple counterparts,
        ------------
  each of which will be deemed an original, but all of which together will
  constitute one and the same instrument.

  11.9  Independent Contractors.  In performing their respective duties under
        -----------------------
  this Agreement, each of the parties will be operating as an independent
  contractor.  Nothing contained herein will in any way constitute any
  association, partnership, or joint venture between the parties hereto, or be
  construed to evidence the intention of the parties to establish

                                       12
<PAGE>

  any such relationship. Neither party will have the power to bind the other
  party or incur obligations on the other party's behalf without the other
  party's prior written consent.

  11.10  Severability.  In the event that it is determined by a court of
         ------------
  competent jurisdiction that any provision of this Agreement is invalid,
  illegal, or otherwise unenforceable, such provision will be enforced as nearly
  as possible in accordance with the stated intention of the parties, while the
  remainder of this Agreement will remain in full force and effect and bind the
  parties according to its terms.  To the extent any provision cannot be
  enforced in accordance with the stated intentions of the parties, such
  provisions will be deemed not to be a part of this Agreement.

  11.11  Entire Agreement.  This Agreement, the Consignment Contract and the
         ----------------
  License Agreement constitute the entire and exclusive agreement between the
  parties hereto with respect to the subject matter hereof and supersede any
  prior representations, understandings and agreements between the parties with
  respect to such subject matter.

12.  Board Approval.

12.1 The Agreement is subject to approval by Samsung Board of Directors by
     April 17, 2001.

                                       13
<PAGE>

IN WITNESS WHEREOF, Lexar and Samsung have caused this Agreement to be executed
by their duly authorized representatives as of the Effective Date.

Lexar Media, Inc.                               Samsung Electronics Co., Ltd.
By:

/s/ Eric S. Whitaker                            /s/ Yun Seung Shin
--------------------                            --------------------------------
Eric S. Whitaker                                Yun Seung Shin
Title: Vice President of Technology Licensing   Senior Vice President
      ---------------------------------------   ---------------------

Date: March 29, 2001                            March 29, 2001

                                       14<PAGE>
                                                                   EXHIBIT 10.88

                       AMENDMENT NUMBER ONE TO LOAN AND
                         SECURITY AGREEMENT AND WAIVER

          This Amendment Number One to Loan and Security Agreement and Waiver
("Amendment") is entered into as of May 15, 2001, by and among FOOTHILL CAPITAL
CORPORATION, a California corporation ("Foothill"), P-COM NETWORK SERVICES,
INC., a Delaware corporation, and P-COM, INC., a Delaware corporation
(collectively, "Borrowers"), in light of the following:

          A. Borrowers and Foothill have previously entered into that certain
Loan and Security Agreement, dated as of March 29, 2001 (the "Agreement").

          B. Borrower and Foothill desire to amend the Agreement and to waive
certain Events of Default as provided for and on the conditions herein.

          NOW, THEREFORE, Borrower and Foothill hereby amend and supplement the
Agreement as follows:

          1. DEFINITIONS. All initially capitalized terms used in this Amendment
             -----------
shall have the meanings given to them in the Agreement unless specifically
defined herein.

          2. WAIVER. Foothill hereby waives any Event of Default that has
             ------
occurred as a result of Borrowers' failure, as of March 31, 2001, to comply with
Section 7.20 of the Agreement ("Existing Defaults"). This is a one-time waiver
with respect to the Existing Defaults only and shall not in any way affect any
other obligation, agreement or covenant of Borrowers, or any right or remedy of
Foothill, under the Agreement, as amended hereby.

          3.  AMENDMENTS.
              ----------
              (a) Section 2.7 of the Agreement is hereby amended and restated in
its entirety to read as follows:

                   "2.7 Collection of Accounts. Borrowers shall at all times
maintain Lockbox Agreements and, immediately after the Closing Date, shall
instruct all Account Debtors with respect to the Accounts, General Intangibles,
and Negotiable Collateral of Borrower to remit all Collections in respect
                                               ---
thereof in accordance with such Lockbox Agreements. Borrowers, Foothill, and the
Lockbox Banks shall enter into the Lockbox Agreements, which among other things
shall provide for the opening of a Lockbox Account for the deposit of
Collections at a Lockbox Bank. Borrowers agree that all Collections and other
amounts received by any Borrower from any Account Debtor or any other source
immediately upon receipt shall be deposited into a Lockbox Account. No Lockbox
Agreement or arrangement contemplated thereby shall be modified by Borrowers
without the prior written consent of Foothill. Upon the terms and subject to the
conditions set forth in the Lockbox Agreements, all amounts received in all
Lockbox Accounts of P-Com at all Lockbox Banks located in the United States of
America shall be automatically wired each Business Day into an account (the
"Foothill

                                       1
<PAGE>

Account") maintained by Foothill at a depository selected by Foothill.
With respect to all Lockbox Accounts of Network anywhere and all Lockbox
Accounts of P-Com located in the United Kingdom, Foothill shall have the right
at any time from and after a date on which (i) an Event of Default has occurred
and is continuing, or (ii) Excess Availability is less than $10,000,000 to
require that all amounts received in such Lockbox Account be wired each Business
Day into the Foothill Account. In the absence of such a requirement with respect
to the Lockbox Accounts referred to in the immediately preceding sentence,
amounts received in such Lockbox Accounts may be transferred to an account of
either Borrower."

              (b) Section 3.3 of the Agreement is hereby amended and restated in
its entirety to read as follows:

              "3.3 Conditions Subsequent. As conditions subsequent to initial
closing hereunder, Borrowers shall perform or cause to be performed the
following (the failure by Borrowers to so perform or cause to be performed
constituting an Event of Default):

                   (a) by no later than May 31, 2001, deliver to Foothill all
certificates representing the shares of P-Com Gmbh Stock pledged to Foothill
under the Stock Pledge, as well as stock powers endorsed in blank with medallion
signature guaranties.

                   (b) by no later than May 31, 2001, using its best efforts,
deliver to Foothill no offset letters, in form and substance satisfactory to
Foothill and its counsel, from Siemens AG and any other Person designated by
Foothill prior to the Closing Date, and each such no offset letter shall be in
full force and effect;

                   (c) by no later than May 31, 2001, deliver to Foothill the
duly executed Lockbox Agreements in connection with Borrowers' Barclays Accounts
and each such Lockbox Agreement shall be in full force and effect;

                   (d) by no later than May 31, 2001, deliver to Foothill the
duly executed Control Agreement in connection with Barclays Bank PLC and Union
Bank of California, N.A., and such Control Agreement shall be in full force and
effect ;

                   (e) by no later than May 31, 2001, deliver to Foothill a
revised Schedule C-1 (Investment Property), as requested by Foothill on the
Closing Date;

                   (f) by no later than May 31, 2001, deliver to Foothill
such Collateral Access Agreements from lessors, warehousemen, bailees, and other
third persons as Foothill may require;

                   (g) by no later than May 31, 2001, deliver to Foothill (A)
certificates of status from the jurisdiction where each Subsidiary is organized,
and (B) certificates from the Secretary of each Subsidiary attesting to the
resolutions of each Subsidiary's Board of Directors authorizing its execution,
delivery, and performance of

                                       2
<PAGE>

the agreements required of such Subsidiary pursuant to this Agreement and
authorizing specific officers of such Subsidiary to execute the same, together
with resolutions, articles and bylaws, or their equivalents, attached thereto;

                   (h) by no later than May 31, 2001, deliver to Foothill (A) a
revised insurance certificate as requested by Foothill on the Closing Date, and
(B) certified copies of the policies of insurance, together with the
endorsements thereto, as are required by Section 6.9, the form and substance of
which shall be satisfactory to Foothill and its counsel;

                   (i) by no later than May 31, 2001, each Borrower shall
register with the United States Copyright Office its copyrights for current
versions of its software, and Borrower shall execute an amendment to the
appropriate Intellectual Property Security Agreement adding such registered
copyrights;

                   (j) by no later than June 30, 2001, Network shall become
qualified as a foreign corporation in the State of California, as evidenced by a
good standing certificate from the California Secretary of State; and

                   (k) by no later than June 30, 2001, Network shall either
cause Bank of America, N.A. ("BofA") to enter into a Lockbox Agreement
containing terms and conditions acceptable to Foothill, in its Permitted
Discretion, or discontinue its banking relationship with BofA and establish a
new banking relationship with a financial institution that is able to enter into
a Lockbox Agreement that is satisfactory to Foothill."

              (c) Section 6.2 of the Agreement is hereby amended and restated in
its entirety to read as follows:

                   "6.2 Collateral Reporting. Provide Foothill with the
following documents at the following times in form satisfactory to Foothill:

<TABLE>
<S>                 <C>
      Weekly        (a) a sales journal, collection journal, and credit register since the
                    last such schedule and a calculation of the Borrowing Base as of such
                    date, and

                    (b) notice of all returns, disputes, or claims.
-------------------------------------------------------------------------------------------
Semi-Monthly (not   (c) the balances maintained by each Borrower in its DDAs and Securities
 later than the     Accounts as reflected in the monthly statements or documents
 20th and last      satisfactory to Foothill issued by the financial institutions or
 days of each       securities intermediaries where such accounts are maintained,
 month)
-------------------------------------------------------------------------------------------
Monthly (not        (d) a detailed calculation of the Borrowing Base (including detail
 later than the     regarding those Accounts that are not Eligible Accounts),
 10th day of each
 month)             (e) a detailed aging, by total, of the Accounts, a manual aging of the
                    Accounts owing by Orange Personal Communications Services Ltd., and by
                    Mercury One-2-One Personal Communications, together with a
                    reconciliation to the detailed calculation of the Borrowing Base
                    previously
</TABLE>

                                       3
<PAGE>

<TABLE>
<CAPTION>
<S>                 <C>
                    provided to Foothill,

                    (f) a summary aging, by vendor, of Borrowers' accounts payable
                    (including non-cancelable minimum guaranteed contracts); and any book
                    overdraft, and

                    (g) a calculation of Dilution for the prior month and prior 12 months.
-------------------------------------------------------------------------------------------
Quarterly           (h) a detailed list of each Borrower's customers.
-------------------------------------------------------------------------------------------
Upon request by     (i) copies of invoices in connection with the Accounts, credit memos,
 Lender             remittance advices, deposit slips, shipping and delivery documents in
                    connection with the Accounts and, for Inventory and Equipment acquired
                    by Borrowers, purchase orders and invoices, and

                    (j) such other reports as to the Collateral, or the financial condition
                    of Borrowers as Foothill may request."
-------------------------------------------------------------------------------------------
</TABLE>

              (d) Section 7.20 of the Agreement is hereby amended and restated
in its entirety to read as follows:

                    "7.20  Financial Covenants.  Fail to maintain:

                        (a) Tangible Net Worth of at least the following amounts
as of the dates specified below:

<TABLE>
<CAPTION>
            Quarter Ending              Minimum Tangible Net Worth
            --------------              --------------------------
        <S>                              <C>
          June 30, 2001                        $52,100,000
          September 30, 2001                   $51,400,000
          December 31, 2001                    $52,200,000
          March 31, 2002                       $54,300,000
          June 30, 2002                        $58,020,000
          September 30, 2002                   $60,590,000
          December 31, 2002                    $64,450,000
          March 31, 2003                       $66,750,000
</TABLE>

                                       4
<PAGE>

<TABLE>
<CAPTION>
         <S>                                   <C>
          June 30, 2003                        $69,000,000
          September 30, 2003                   $71,250,000
          December 31, 2003                    $73,500,000
</TABLE>

              (b) EBITDA of at least the following amounts as of the dates
 specified below:

<TABLE>
<CAPTION>
             Quarter Ending                   Minimum EBITDA
             --------------                   --------------
         <S>                                 <C>
          June 30, 2001                        ($19,000,000)
          September 30, 2001                   ($17,600,000)
          December 31, 2001                    ($10,350,000)
          March 31, 2002                       $8,720,000
          June 30, 2002                        $14,730,000
          September 30, 2002                   $17,940,000
          December 31, 2002                    $20,220,000
          March 31, 2003                       $21,500,000
          June 30, 2003                        $22,500,000
          September 30, 2003                   $23,500,000
          December 31, 2003                    $24,500,000
</TABLE>

         4. REPRESENTATIONS AND WARRANTIES. Borrowers hereby affirm to Foothill
            ------------------------------
that all of Borrowers' representations and warranties set forth in the Agreement
are true, complete and accurate in all respects as of the date hereof.

         5. NO DEFAULTS. Borrowers hereby affirm to Foothill that, other than
            -----------
the Existing Defaults, no Event of Default has occurred and is continuing as of
the date hereof.

         6. CONDITION PRECEDENT. The effectiveness of this Amendment is
            -------------------
expressly conditioned upon the following:

              (a) Payment by Borrowers to Foothill of an amendment and waiver
fee in the aggregate amount of Forty Five Thousand Dollars ($45,000), which
shall be fully earned on the date hereof, but shall be paid as follows: (i)
$25,000 of such fee shall be due and payable on the date hereof, (ii) $10,000 of
such fee shall be due and payable on June 1, 2001, and (iii) $10,000 of such fee
shall be due and payable on July 1,

                                       5
<PAGE>

2001, each payment to be charged to Borrower's loan account pursuant to Section
2.6(e) of the Agreement; and

              (b)  Receipt by Foothill of an executed copy of this Amendment.

         7. COSTS AND EXPENSES. Borrowers shall pay to Foothill all of
            ------------------
Foothill's out-of-pocket costs and expenses (including, without limitation, the
fees and expenses of its counsel, which counsel may include any local counsel
deemed necessary, search fees, filing and recording fees, documentation fees,
appraisal fees, travel expenses, and other fees) arising in connection with the
preparation, execution, and delivery of this Amendment and all related
documents.

         8. LIMITED EFFECT. In the event of a conflict between the terms and
            --------------
provisions of this Amendment and the terms and provisions of the Agreement, the
terms and provisions of this Amendment shall govern. In all other respects, the
Agreement, as amended and supplemented hereby, shall remain in full force and
effect.

         9. COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any
            ---------------------------
number of counterparts and by different parties on separate counterparts, each
of which when so executed and delivered shall be deemed to be an original. All
such counterparts, taken together, shall constitute but one and the same
Amendment. This Amendment shall become effective upon the execution of a
counterpart of this Amendment by each of the parties hereto.

          IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first set forth above.

                             FOOTHILL CAPITAL CORPORATION,
                             a California corporation

                             By: ____________________________________

                             Title: _________________________________

                             P-COM NETWORK SERVICES, INC.,
                             a Delaware corporation

                             By: __________/s/_______________________

                             Title: Vice President and Chief
                                    Financial Officer

                             P-COM, INC.,
                             a Delaware corporation

                             By: __________/s/_______________________

                             Title: Vice President and Chief
                                    Financial Officer

                                       6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00025-of-00352.parquet"}]]