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                                                                   EXHIBIT 10.19

                                 DSP GROUP, INC.

                   1998 NON-OFFICER EMPLOYEE STOCK OPTION PLAN

                     (amended and restated on July 18, 2001)

                   (amended and restated on November 25, 2002)

        1.      Purposes of the Plan. The purposes of this Non-Officer Employee
Stock Option Plan are to attract and retain the best available personnel, to
provide additional incentive to Employees (excluding Officers) and to promote
the success of the Company's business.

        2.      Definitions. As used herein, the following definitions shall
apply:

                  (a) "Administrator" means the Board or any of the Committees
appointed to administer the Plan.

                  (b) "Affiliate" and "Associate" shall have the respective
meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange
Act.

                  (c) "Applicable Laws" means the legal requirements relating to
the administration of stock option plans, if any, under applicable provisions of
federal securities laws, state corporate and securities laws, the Code, the
rules of any applicable stock exchange or national market system, and the rules
of any foreign jurisdiction applicable to Awards granted to residents therein.

                  (d) "Award" means the grant of an Non-Qualified Stock Option
or other right or benefit under the Plan.

                  (e) "Award Agreement" means the written agreement evidencing
the grant of an Award executed by the Company and the Grantee, including any
amendments thereto.

                  (f) "Board" means the Board of Directors of the Company.

                  (g) "Change in Control" means a change in ownership or control
of the Company effected through either of the following transactions:

                        (i)     the direct or indirect acquisition by any person
or related group of persons (other than an acquisition from or by the Company or
by a Company-sponsored employee benefit plan or by a person that directly or
indirectly controls, is controlled by, or is under common control with, the
Company) of beneficial ownership (within the meaning of Rule 13d-3 of the
Exchange Act) of securities possessing more than fifty percent (50%) of the
total combined voting power of the Company's outstanding securities pursuant to
a tender or exchange offer made directly to the Company's stockholders which a
majority of the Continuing Directors who are not Affiliates or Associates of the
offeror do not recommend such stockholders accept, or

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                        (ii)    a change in the composition of the Board over a
period of twenty-four (24) months or less such that a majority of the Board
members (rounded up to the next whole number) ceases, by reason of one or more
contested elections for Board membership, to be comprised of individuals who are
Continuing Directors.

                  (h) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (i) "Committee" means any committee appointed by the Board to
administer the Plan.

                  (j) "Common Stock" means the common stock of the Company.

                  (k) "Company" means DSP Group, Inc., a Delaware corporation.

                  (l) "Consultant" means any person (other than an Employee or,
solely with respect to rendering services in such person's capacity as a
Director) who is engaged by the Company, ParthusCeva, Inc. or any Related Entity
to render consulting or advisory services to the Company, ParthusCeva, Inc. or
such Related Entity.

                  (m) "Continuing Directors" means members of the Board who
either (i) have been Board members continuously for a period of at least
twenty-four (24) months or (ii) have been Board members for less than
twenty-four (24) months and were elected or nominated for election as Board
members by at least a majority of the Board members described in clause (i) who
were still in office at the time such election or nomination was approved by the
Board.

                  (n) "Continuous Service" means that the provision of services
to the Company, ParthusCeva, Inc. or a Related Entity in any capacity of
Employee, Director or Consultant, is not interrupted or terminated. Continuous
Service shall not be considered interrupted in the case of (i) any approved
leave of absence, (ii) transfers between locations of the Company or among the
Company, ParthusCeva, Inc., any Related Entity, or any successor, in any
capacity of Employee, Director or Consultant, or (iii) any change in status as
long as the individual remains in the service of the Company, ParthusCeva, Inc.
or a Related Entity in any capacity of Employee, Director or Consultant (except
as otherwise provided in the Award Agreement). An approved leave of absence
shall include sick leave, military leave, or any other authorized personal
leave.

                  (o) "Corporate Transaction" means any of the following
transactions:

                        (i)     a merger or consolidation in which the Company
is not the surviving entity, except for a transaction the principal purpose of
which is to change the state in which the Company is incorporated;

                        (ii)    the sale, transfer or other disposition of all
or substantially all of the assets of the Company (including the capital stock
of the Company's subsidiary corporations) in connection with the complete
liquidation or dissolution of the Company;

                        (iii)   any reverse merger in which the Company is the
surviving entity but in which securities possessing more than fifty percent
(50%) of the total combined voting

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power of the Company's outstanding securities are transferred to a person or
persons different from those who held such securities immediately prior to such
merger; or

                        (iv)    an acquisition by any person or related group of
persons (other than the Company or by a Company-sponsored employee benefit plan)
of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act)
of securities possessing more than fifty percent (50%) of the total combined
voting power of the Company's outstanding securities (whether or not in a
transaction also constituting a Change in Control), but excluding any such
transaction that the Administrator determines shall not be a Corporate
Transaction.

                  (p) "Director" means a member of the Board or the board of
directors of ParthusCeva, Inc. or any Related Entity.

                  (q) "Disability" means that a Grantee would qualify for
benefit payments under the long-term disability policy of the Company,
ParthusCeva, Inc. or the Related Entity to which the Grantee provides services
regardless of whether the Grantee is covered by such policy.

                  (r) "Employee" means any person who is an employee of the
Company, ParthusCeva, Inc. or any Related Entity. The payment of a director's
fee by the Company, ParthusCeva, Inc. or a Related Entity shall not be
sufficient to constitute "employment" by the Company.

                  (s) "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

                  (t) "Fair Market Value" means, as of any date, the value of
Common Stock determined as follows:

                        (i)     Where there exists a public market for the
Common Stock, the Fair Market Value shall be (A) the closing price for a Share
on the date of the determination (or, if no closing price was reported on that
date, on the last trading date on which a closing price was reported) on the
stock exchange determined by the Administrator to be the primary market for the
Common Stock or the Nasdaq National Market, whichever is applicable or (B) if
the Common Stock is not traded on any such exchange or national market system,
the average of the closing bid and asked prices of a Share on the Nasdaq Small
Cap Market on the date of the determination (or, if no such prices were reported
on that date, on the last date on which such prices were reported), in each
case, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable; or

                        (ii)    In the absence of an established market for the
Common Stock of the type described in (i), above, the Fair Market Value thereof
shall be determined by the Administrator in good faith.

                  (u) "Grantee" means an Employee who receives an Award pursuant
to an Award Agreement under the Plan.

                  (v) "Non-Qualified Stock Option" means an Option not intended
to qualify as an incentive stock option within the meaning of Section 422 of the
Code.

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                  (w) "Officer" means a person who is an officer of the Company
or a Related Entity within the meaning of Section 16 of the Exchange Act and the
rules and regulations promulgated thereunder.

                  (x) "Option" means an option to purchase Shares pursuant to an
Award Agreement granted under the Plan.

                  (y) "Parent" means a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  (z) "Plan" means this 1998 Non-Officer Employee Stock Option
Plan.

                  (aa) "Related Entity" means any Parent or Subsidiary of the
Company or ParthusCeva, Inc. and any business, corporation, partnership, limited
liability company or other entity in which the Company or a Parent or a
Subsidiary of the Company or ParthusCeva, Inc. holds a substantial ownership
interest, directly or indirectly.

                  (bb) "Related Entity Disposition" means the sale, distribution
or other disposition by the Company, ParthusCeva, Inc. or a Parent or a
Subsidiary of either company of all or substantially all of the interests of the
Company, ParthusCeva, Inc. or a Parent or a Subsidiary of either company in any
Related Entity effected by a sale, merger or consolidation or other transaction
involving that Related Entity or the sale of all or substantially all of the
assets of that Related Entity, other than any Related Entity Disposition to the
Company, ParthusCeva, Inc. or a Parent or a Subsidiary of either company.

                  (cc) "Rule 16b-3" means Rule 16b-3 promulgated under the
Exchange Act or any successor thereto.

                  (dd) "Share" means a share of the Common Stock.

                  (ee) "Spin-off Transaction" means a distribution by the
Company to its stockholders of all or any portion of the securities of any
Subsidiary of the Company.

                  (ff) "Subsidiary" means a "subsidiary corporation," whether
now or hereafter existing, as defined in Section 424(f) of the Code.

        3.      Stock Subject to the Plan.

                  (a) Subject to the provisions of Section 10, below, as of
November 25, 2002 the maximum aggregate number of Shares which may be issued
pursuant to all Awards is five million five hundred seven thousand eight hundred
seventy-three (5,507,873) Shares. The Shares to be issued pursuant to Awards may
be authorized, but unissued, or reacquired Common Stock.

                  Initially, nine hundred fifty thousand (950,000) Shares were
reserved for issuance under the Plan. In January 2000, the Plan was amended to
increase the number of Shares reserved for issuance under the Plan by six
hundred thousand (600,000) Shares for a total reserve of one million five
hundred fifty thousand (1,550,000) Shares. In March 2000, the Company

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effected a two-for-one split of the Company's common stock thereby increasing
the number of Shares reserved for issuance under the Plan to three million one
hundred thousand (3,100,000) Shares. In October 2000, the Plan was amended to
increase the number of Shares reserved for issuance under the Plan by five
hundred thousand (500,000) Shares for a total reserve of three million six
hundred thousand (3,600,000) Shares. In May 2001, the Plan was amended to
increase the number of Shares reserved for issuance under the Plan by one
million (1,000,000) Shares for a total reserve of four million six hundred
thousand (4,600,000) Shares. As a result of the Company's distribution of all
(or substantially all) of the shares of capital stock of Ceva, Inc. in November
2002, the number of shares reserved for issuance under the Plan was adjusted so
that 5,507,873 Shares are available for issuance under the Plan.

                  (b) Any Shares covered by an Award (or portion of an Award)
which is forfeited or canceled, expires or is settled in cash, shall be deemed
not to have been issued for purposes of determining the maximum aggregate number
of Shares which may be issued under the Plan. If any unissued Shares are
retained by the Company upon exercise of an Award in order to satisfy the
exercise price for such Award or any withholding taxes due with respect to such
Award, such retained Shares subject to such Award shall become available for
future issuance under the Plan (unless the Plan has terminated). Shares that
actually have been issued under the Plan pursuant to an Award shall not be
returned to the Plan and shall not become available for future issuance under
the Plan, except that if unvested Shares are forfeited, or repurchased by the
Company at their original purchase price, such Shares shall become available for
future grant under the Plan.

        4.      Administration of the Plan.

                  (a) Plan Administrator.

                        (i)     Administration. The Plan shall be administered
by (A) the Board or (B) a Committee designated by the Board, which Committee
shall be constituted in such a manner as to satisfy the Applicable Laws. Once
appointed, such Committee shall continue to serve in its designated capacity
until otherwise directed by the Board. The Board may authorize one or more
Officers to grant such Awards and may limit such authority as the Board
determines from time to time.

                        (ii)    Administration Errors. In the event an Award is
granted in a manner inconsistent with the provisions of this subsection (a),
such Award shall be presumptively valid as of its grant date to the extent
permitted by the Applicable Laws.

                  (b) Powers of the Administrator. Subject to Applicable Laws
and the provisions of the Plan (including any other powers given to the
Administrator hereunder), and except as otherwise provided by the Board, the
Administrator shall have the authority, in its discretion:

                        (i)     to select the Employees to whom Awards may be
granted from time to time hereunder;

                        (ii)    to determine whether and to what extent Awards
are granted hereunder;

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                        (iii)   to determine the number of Shares or the amount
of other consideration to be covered by each Award granted hereunder;

                        (iv)    to approve forms of Award Agreements for use
under the Plan;

                        (v)     to determine the terms and conditions of any
Award granted hereunder;

                        (vi)    to amend the terms of any outstanding Award
granted under the Plan, provided that any amendment that would adversely affect
the Grantee's rights under an outstanding Award shall not be made without the
Grantee's written consent;

                        (vii)   to construe and interpret the terms of the Plan
and Awards granted pursuant to the Plan, including without limitation, any
notice of Award or Award Agreement, granted pursuant to the Plan;

                        (viii)  to establish additional terms, conditions, rules
or procedures to accommodate the rules or laws of applicable foreign
jurisdictions and to afford Grantees favorable treatment under such laws;
provided, however, that no Award shall be granted under any such additional
terms, conditions, rules or procedures with terms or conditions which are
inconsistent with the provisions of the Plan; and

                        (ix)    to take such other action, not inconsistent with
the terms of the Plan, as the Administrator deems appropriate.

                  (c) Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be conclusive and
binding on all persons.

        5.      Eligibility. Awards may be granted to Employees, excluding
Officers. An Employee who has been granted an Award may, if otherwise eligible,
be granted additional Awards. Awards may be granted to such Employees (excluding
Officers) who are residing in foreign jurisdictions as the Administrator may
determine from time to time.

        6.      Terms and Conditions of Awards.

                  (a) Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, increase in share price, earnings per share, total stockholder
return, return on equity, return on assets, return on investment, net operating
income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator.
Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement.

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                  (b) Acquisitions and Other Transactions. The Administrator may
issue Awards under the Plan in settlement, assumption or substitution for,
outstanding awards or obligations to grant future awards in connection with the
Company or a Related Entity acquiring another entity, an interest in another
entity or an additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

                  (c) Deferral of Award Payment. The Administrator may establish
one or more programs under the Plan to permit selected Grantees the opportunity
to elect to defer receipt of consideration upon exercise of an Award,
satisfaction of performance criteria, or other event that absent the election
would entitle the Grantee to payment or receipt of Shares or other consideration
under an Award. The Administrator may establish the election procedures, the
timing of such elections, the mechanisms for payments of, and accrual of
interest or other earnings, if any, on amounts, Shares or other consideration so
deferred, and such other terms, conditions, rules and procedures that the
Administrator deems advisable for the administration of any such deferral
program.

                  (d) Separate Programs. The Administrator may establish one or
more separate programs under the Plan for the purpose of issuing particular
forms of Awards to one or more classes of Grantees on such terms and conditions
as determined by the Administrator from time to time.

                  (e) Early Exercise. The Award Agreement may, but need not,
include a provision whereby the Grantee may elect at any time while in
Continuous Service to exercise any part or all of the Award prior to full
vesting of the Award. Any unvested Shares received pursuant to such exercise may
be subject to a repurchase right in favor of the Company or a Related Entity or
to any other restriction the Administrator determines to be appropriate.

                  (f) Term of Award. The term of each Award shall be the term
stated in the Award Agreement.

                  (g) Transferability of Awards. Awards shall be transferable to
the extent provided in the Award Agreement.

                  (h) Time of Granting Awards. The date of grant of an Award
shall for all purposes be the date on which the Administrator makes the
determination to grant such Award, or such other date as is determined by the
Administrator. Notice of the grant determination shall be given to each Employee
to whom an Award is so granted within a reasonable time after the date of such
grant.

        7.      Award Exercise or Purchase Price, Consideration, and Taxes.

                  (a) Exercise or Purchase Price. The exercise price for an
Award shall be determined by the Administrator.

                  (b) Consideration. Subject to Applicable Laws, the
consideration to be paid for the Shares to be issued upon exercise of an Award
including the method of payment, shall be determined by the Administrator. In
addition to any other types of consideration the

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Administrator may determine, the Administrator is authorized to accept as
consideration for Shares issued under the Plan the following, provided that the
portion of the consideration equal to the par value of the Shares must be paid
in cash or other legal consideration permitted by the Delaware General
Corporation Law:

                        (i)     cash;

                        (ii)    check;

                        (iii)   delivery of Grantee's promissory note with such
recourse, interest, security, and redemption provisions as the Administrator
determines as appropriate;

                        (iv)    surrender of Shares or delivery of a properly
executed form of attestation of ownership of Shares as the Administrator may
require (including withholding of Shares otherwise deliverable upon exercise of
the Award) which have a Fair Market Value on the date of surrender or
attestation equal to the aggregate exercise price of the Shares as to which said
Award shall be exercised (but only to the extent that such exercise of the Award
would not result in an accounting compensation charge with respect to the Shares
used to pay the exercise price unless otherwise determined by the
Administrator);

                        (v)     with respect to Options, payment through a
broker-dealer sale and remittance procedure pursuant to which the Grantee (A)
shall provide written instructions to a Company designated brokerage firm to
effect the immediate sale of some or all of the purchased Shares and remit to
the Company, out of the sale proceeds available on the settlement date,
sufficient funds to cover the aggregate exercise price payable for the purchased
Shares and (B) shall provide written directives to the Company to deliver the
certificates for the purchased Shares directly to such brokerage firm in order
to complete the sale transaction; or

                        (vi)    any combination of the foregoing methods of
payment.

                  (c) Taxes. No Shares shall be delivered under the Plan to any
Grantee or other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any foreign, federal,
state, or local income and employment tax withholding obligations, including,
without limitation, obligations incident to the receipt of Shares. Upon exercise
of an Award, the Company shall withhold or collect from Grantee an amount
sufficient to satisfy such tax obligations.

        8.      Exercise of Award.

                  (a) Procedure for Exercise; Rights as a Stockholder.

                        (i)     Any Award granted hereunder shall be exercisable
at such times and under such conditions as determined by the Administrator under
the terms of the Plan and specified in the Award Agreement.

                        (ii)    An Award shall be deemed to be exercised when
written notice of such exercise has been given to the Company in accordance with
the terms of the Award by the

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person entitled to exercise the Award and full payment for the Shares with
respect to which the Award is exercised, including, to the extent selected, use
of the broker-dealer sale and remittance procedure to pay the purchase price as
provided in Section 7(b)(v). Until the issuance (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company) of the stock certificate evidencing such Shares, no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect
to Shares subject to an Award, notwithstanding the exercise of an Option or
other Award. The Company shall issue (or cause to be issued) such stock
certificate promptly upon exercise of the Award. No adjustment will be made for
a dividend or other right for which the record date is prior to the date the
stock certificate is issued, except as provided in the Award Agreement or
Section 10, below.

                  (b) Exercise of Award Following Termination of Continuous
Service.

                        (i)     An Award may not be exercised after the
termination date of such Award set forth in the Award Agreement and may be
exercised following the termination of a Grantee's Continuous Service only to
the extent provided in the Award Agreement.

                        (ii)    Where the Award Agreement permits a Grantee to
exercise an Award following the termination of the Grantee's Continuous Service
for a specified period, the Award shall terminate to the extent not exercised on
the last day of the specified period or the last day of the original term of the
Award, whichever occurs first.

                  (c) Buyout Provisions. The Administrator may at any time offer
to buy out for a payment in cash or Shares, an Award previously granted, based
on such terms and conditions as the Administrator shall establish and
communicate to the Grantee at the time that such offer is made.

        9.      Conditions Upon Issuance of Shares.

                  (a) Shares shall not be issued pursuant to the exercise of an
Award unless the exercise of such Award and the issuance and delivery of such
Shares pursuant thereto shall comply with all Applicable Laws, and shall be
further subject to the approval of counsel for the Company with respect to such
compliance.

                  (b) As a condition to the exercise of an Award, the Company
may require the person exercising such Award to represent and warrant at the
time of any such exercise that the Shares are being purchased only for
investment and without any present intention to sell or distribute such Shares
if, in the opinion of counsel for the Company, such a representation is required
by any Applicable Laws.

        10.     Adjustments Upon Changes in Capitalization. Subject to any
required action by the stockholders of the Company, the number of Shares covered
by each outstanding Award, and the number of Shares which have been authorized
for issuance under the Plan but as to which no Awards have yet been granted or
which have been returned to the Plan, the exercise or purchase price of each
such outstanding Award, as well as any other terms that the Administrator
determines require adjustment shall be proportionately adjusted for (i) any
increase or decrease in

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the number of issued Shares resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Shares, (ii) any other
increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company, or (iii) as the Administrator may determine in its
discretion, any other transaction with respect to Common Stock to which Section
424(a) of the Code applies; provided, however that conversion of any convertible
securities of the Company shall not be deemed to have been "effected without
receipt of consideration." Such adjustment shall be made by the Administrator
and its determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the
number or price of Shares subject to an Award. In the event of a Spin-off
Transaction, the Administrator may in its discretion make such adjustments and
take such other action as it deems appropriate with respect to outstanding
Awards under the Plan, including but not limited to adjustments to the number
and kind of shares, the price per share and the vesting periods of outstanding
Awards or the substitution, exchange or grant of Awards to purchase securities
of the Subsidiary; provided that the Administrator shall not be obligated to
make any such adjustments or take any such action hereunder.

        11.     Corporate Transactions/Changes in Control/Related Entity
Dispositions. The Administrator shall have the authority, exercisable either in
advance of any actual or anticipated Corporate Transaction, Change in Control or
Related Entity Disposition or at the time of an actual Corporate Transaction,
Change in Control or Related Entity Disposition and exercisable at the time of
the grant of an Award under the Plan or any time while an Award remains
outstanding, to provide for the full automatic vesting and exercisability of one
or more outstanding unvested Awards under the Plan and the release from
restrictions on transfer and repurchase or forfeiture rights of such Awards in
connection with a Corporate Transaction, Change in Control or Related Entity
Disposition, on such terms and conditions as the Administrator may specify. The
Administrator also shall have the authority to condition any such Award vesting
and exercisability or release from such limitations upon the subsequent
termination of the Continuous Service of the Grantee within a specified period
following the effective date of the Corporate Transaction, Change in Control or
Related Entity Disposition. The Administrator may provide that any Awards so
vested or released from such limitations in connection with a Change in Control
or Related Entity Disposition, shall remain fully exercisable until the
expiration or sooner termination of the Award. Effective upon the consummation
of a Corporate Transaction, all outstanding Awards under the Plan shall
terminate unless assumed by the successor company or its Parent.

        12.     Effective Date and Term of Plan. The Plan shall become effective
upon its adoption by the Board and shall continue in effect until terminated by
the Board. Subject to Section 16, below, and Applicable Laws, Awards may be
granted under the Plan upon its becoming effective.

        13.     Amendment, Suspension or Termination of the Plan.

                        (i)     The Board may at any time amend, suspend or
terminate the Plan. To the extent necessary to comply with Applicable Laws, the
Company shall obtain stockholder approval of any Plan amendment in such a manner
and to such a degree as required.

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                  (b) No Award may be granted during any suspension of the Plan
or after termination of the Plan.

                  (c) Any amendment, suspension or termination of the Plan
(including termination of the Plan under Section 12, above) shall not affect
Awards already granted, and such Awards shall remain in full force and effect as
if the Plan had not been amended, suspended or terminated, unless mutually
agreed otherwise between the Grantee and the Administrator, which agreement must
be in writing and signed by the Grantee and the Company.

        14.     Reservation of Shares.

                  (a) The Company, during the term of the Plan, will at all
times reserve and keep available such number of Shares as shall be sufficient to
satisfy the requirements of the Plan.

                  (b) The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company's
counsel to be necessary to the lawful issuance and sale of any Shares hereunder,
shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

        15.     No Effect on Terms of Employment Relationship. The Plan shall
not confer upon any Grantee any right with respect to the Grantee's Continuous
Service, nor shall it interfere in any way with his or her right or the
Company's right to terminate the Grantee's Continuous Service at any time, with
or without cause.

        16.     No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit plan
of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The Plan
is not a "Retirement-Plan" or "Welfare Plan" under the Employee Retirement
Income Security Act of 1974, as amended.

        17.     Plan Approval. The Plan was adopted by the Board on November 8,
1998. On July 18, 2001, the Board adopted and approved an amendment and
restatement of the Plan to amend various terms of the Plan in anticipation of
the distribution of all (or substantially all) of the shares of capital stock of
Ceva, Inc. held by the Company to the stockholders of the Company. On November
25, 2002, the Board adopted and approved an amendment and restatement of the
Plan to provide that the Plan shall continue in effect until terminated by the
Board.

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